market day. we are standing by to hear from president obama. -- can heestion convince on the lawmakers not to block it? olivia: good morning and welcome back to the bloomberg market day. pimm: let's check markets -- we are 90 minutes into the trading day here in new york. let's look at how stocks are faring right now. the dow jones industrial average adds .5%. today,moving higher perhaps in anticipation of friday's job report. olivia: also on the back of that much better iso manufacturing.

a big impact on the dollar. when that number came out, showing services expanded at the fastest rate since august 2005. a little bit more risk on sentiment here on wednesday. its check the top headlines at this hour -- a rare downgrade today for apple shares. bank of america upon merrill lynch analysts lowered the stock from a by two neutral. other things -- the stronger dollar and apple's sales in china. appleanalysts don't think can retain the market share. dollar strength is behind the latest widening of america' gap. strong dollar boosted imports and hurt exports in the month of june.

the gap grew by more than 7% to nearly $44 billion. thus the biggest jump in three months. u.s. companies added 185,000 workers in july, most of them in the service sector. that was below economists estimates. the june reading was also revised lower. america's service providers expanding in july at the strongest pace in a decade. the iso nonmanufacturing index to a reading of 60.3, the best since august 2005. that includes orders and employments, they all advanced. holding theb market key to whether interest rates will be raised this fall, at least that is the view of one top investor. earlier, the chief executive of altera broke down the federal reserve's decision-making process. raise they want to raise

and if they get any kind of good number, the accommodation of what happens on the wage front and a seasonally adjusted number, i think that keeps them closer to raising things in september. pimm: a key reading of the labor market is the government's july jobs report. that is scheduled for friday morning. shares of time warner are following today after the company kept its four-year profit forecast unchanged. paul sweeney says there are possible concerns the company's second half may be too high. hbo and tnt cnn, said sales increased 8%, earnings of $1.25 a share, $.22 better than wall street estimates. results were supported by more revenue from video games and the introduction of the hbo now service. new parents offer

on its payroll up to a year of paid leave. the policy covers all of its people at its internet streaming service. by comparison, facebook offers four months of paid leave at $4000 in what it calls baby cash. google workers receive up to 18 weeks. those are your top headlines. one year leave. i like it. a speech from president obama is scheduled for about 20 minutes from now. he's trying to dismiss doubts about the nuclear agreement. the ministration says it the best way to avoid war. president will make his pitch at american university in washington. you can watch it live here on bloomberg tv. in the meantime, i want to bring in our guests.

i want to start with bill. takeexactly is going to place in congress over this pact? bill: they're going to look at the details in terms of what are the risks involved. to weighgoing to have those risks against the potential benefits. i suspect what is going to take places most republicans will vote against the agreement because they don't trust iran and there's little reason why we should trust iran. they don't believe at this point that the inspectors will have the kinds of tools necessary to prevent or detect cheating. they are not incredibly supportive of president obama to begin with. it's going to be the job of the president to talk to the

american people to shore up support of the democratic side because he's going to call on them to save this agreement. there are strong supporters of the state of israel and they are concerned about iran. they will have to lay out why the benefits outweigh the identifiable risks involved. unless he can do that, we have a serious situation. you are also a former republican senator. would you support the deal? bill: we have not had access to the protocol dealing with what the iaea is going to be able to do in terms of inspections. olivia: that's pretty standard. bill: it is not. you don't know with the details are, so that's going to be important. the issue is raised by senator mccain, saying should we deal out to see that and the comments

coming from the panel were yes. that is going to be an issue. second, you have to consider all the potential consequences. senator, sitting as a i would want to call the chairman of the joint chiefs and other members of the joint chiefs to come before the committee, be under oath, and give their personal opinions in terms of what the consequences they would anticipate would come in the event the agreement is disapproved. these issueseigh and there's an issue for example, what happens if the agreement is rejected and the veto is supported? it is not abnormal for the iaea to have agreements with the individual nations. inm: i want to bring margaret.

the international atomic agency has come to washington to brief some lawmakers. what's going on behind the scenes? margaret: behind the scenes, the white house is trying to minimize the implications of what critics are calling a side deal with the iaea and what they say is standard procedure. the parallel path is the white house is expecting they will get a vote of disapproval. they would like to head it off if they can, but what they need to do is locked down enough democrats to help the president sustain a veto. is the president tying the fate of the iran deal to lessons of the war? that's a message to democrats to thisf you are against deal, you are with dick cheney and john bolton. they were wrong then, they are

wrong now. olivia: the president is trying to make the case that many of the people saying this is a bad deal were the same people who supported the invasion of iraq. interview published this morning with secretary john kerry and he says the deal with a gets.as pro-israel as how are the people in israel responding? i don't think they agree. the key issue here is location. israel is closer to iran than anyone involved in the deal. all he has been opposed by the white house and they find him kind of annoying, he does represent the israeli populace. they are looking at iran and they are hearing statements from they say theyand

want to destroy israel. people are worried about it and they are very worried about the deal. let's listen to what primus or netanyahu has already said about the deal. mr. netanyahu: no matter how good your intelligence is, nobody can make such a claim. how can you block what you don't know? so iran can keep the deal or cheat on the deal. either way, it gives iran a clear path to the bottom, a difficult path to one or two bombs today and a much easier path to one or -- to hundreds of bombs tomorrow. i wonder if you can comment on though work of the israeli government and aipac is doing in washington to try to stymie the deal. margaret: is a tremendously strong lobbying campaign underway right now and there are delegations of u.s. lawmakers traveling to israel where they

will meet with netanyahu and presumably other israeli officials and talk about the implications of this. the president is trying his own counter campaign. you saw him bring several jewish-american leaders, both the groups on his side and the groups who are not to the white house yesterday. there was a two hour meeting and many of those people stayed and talked with joe biden who has more credibility in terms of long gently on israel issues with many of these folks. the white house trying to counter the efforts of netanyahu and aipac, but they understand it's not only a well-heeled campaign, but the questioning of whether iran can be trusted in the long term is not the short-term, so what if they abide by the agreement -- it makes it easier for them to get back to what they really want to do. this goes to the heart and soul of what israel's fiercest defenders feel. thank you very much.

we will continue the conversation with former defense en.retary bill coh president obama will take the stage to defend the iran nuclear deal. still ahead, donald trump has been called a lot of things, but don't call him a fringe candidate. we have the details in a new bloomberg politics poll.

olivia: welcome back to the bloomberg market day. i'm olivia sterns. pimm: i'm pimm fox. julie hyman has a look at what's happening in markets. i'm thinking skinny pop popcorn. snack food.hy

is there such a thing? the folks at amplify snack brands ipo did today and is not going well today. raising $275 million for its private equity owners. 15 million shares at $18 of each -- $18 apiece. quiteit was not priced right. i'm looking at some of the other natural packaged food companies and how they have done. we have companies like haynes celestial which is an aggregator of different natural foods brands. white way -- that the alternative milk spun off from dean foods. it has done quite well. yellow one is the s&p super composite package food index. the natural guys

have done a little better year to date. it doesn't look that way for amplify. the worstinancial is performer on the s&p today. the company says it probably will not get rid of its entire life and annuity operation. they had been counting on to reduce debt. the company says they might try to sell it but there's not a lot of optimism over that move today. on the plus side, we've got h&r block rising the most in two and half years. they got approval to sell the bank unit that they have. that would end oversight and capital restrictions, something investors had been waiting for. /blizzard is doing well. online revenue is gaining and the company's numbers are beating estimates. the shares up nearly 13% today. you can do your call of

duty videogame while you your skinny pop popcorn. do,e: is that what you pimm? olivia: that sounds like friday night at matt miller's house. pimm: they also make tortilla chips. republican presidential candidate donald trump may not be a triple politician, but he is leading in all the national polls. the latest from bloomberg politics, he registered twice the support of his closest rival, jeb bush. he spoke to mark halperin and john heilemann on "with all due respect." they talked about issues like what does donald think about the fed zero interest-rate policy? mr. trump: i often talk with two hats.

i've been a politician and a businessperson. i've always loved low interest rates as a developer and have done well with low interest rates. frankly, you look at what is owing on now, i think you are creating a bubble. i like paul volcker a lot. i thought he was a terrific guy -- he was doing what had to be done. right now, we have the low rates and from the standpoint of what i want to do, i'm rebuilding the old post office now and i'm finishing up a project in miami. from the country's standpoint, i'm not sure it's a good thing because i do believe we are creating a bubble. mark: do you like the volcker rule? mr. trump: he was a terrific guy. i met him a few times and i

think his policy and demeanor, there was something very solid about him. mark: if you look across the history of the u.s., who is the treasury secretary you think was the best? mr. trump: i think we have had some good ones and some bad ones. i don't think i have an opinion on that. beautifullots of pictures on beautiful bills and we will see whether that works out, but i have no real opinion about that. federal reserve right now in this world, probably has more of an impact than any other position other than a couple of biggies. john: what do you think of reuben ruben? was he a good treasury secretary? mr. trump: he was a smart guy and went with citibank and then

citibank crashed after he joined , so that hurt his reputation. he's a smart guy and i think he worked hard at it. he left and the world cratered, so does he get point inductions for that? we have to take a look at it. certainly citibank did not do very well. olivia: we in the media have not been taking the trump candidacy seriously, but he is maintaining a double-digit lead and is more almost than bush with every category across the republican spectrum. he's more popular with male voters, female voters, voters younger than 25, older than 45, voters with a college degree, voters who earn more than trump beats jeb bush in every one of those categories. had it -- and the

other candidates as well. not only does he beat jeb bush, which many people would say is another front runner, he wins among moderates, by just 1%. we will have to see what happens when trump takes the stage in cleveland tomorrow night. is another debate that takes place at 5:00 for the candidates that did not make it to the top level. are you going to watch it? olivia: yes. popcorn.will eat some coming up on the bloomberg market day, president obama is expected to come to the podium any minute now. he will be speaking about his support for the newly negotiated in iran nuclear deal.

welcome back. i'm olivia sterns here with pimm

fox. we are waiting for president obama to take the stage at american university. there you see a live shot. we are waiting president obama's arrival and his defense of the iran agreement. us about the potential fallout from the iran nuclear deal, if in fact it does go through. is it inevitable saudi arabia starts to develop its own nuclear weapon? that is a possibility. if the agreement stands, the president will have an absolute obligation to help continue to give israel a qualitative up they edge and build gulf states and make them part of a regional effort to combat the spread of iran. iran is not going away as a revolutionary country.

that is one of the consequences if the deal goes through. prime minister netanyahu had three points. we had an opportunity to slow the development of nuclear weapons. in the long-term, it comes off and bar the door. what we have to do is say what happens if the agreement is rejected. are we better off than we would be with a 15 year window? those are the kinds of things the president can address today and they will have two are swayed democrats to back him with this agreement. after that, we have a problem we will all have to contend with. pimm: if the united states does , theyprove of this deal may make a lot of money in iran, aren't they? bill: they are already there.

they have people on the ground starting to negotiate deals as we speak. as opposed to unilateral sanctions, which won't have much of an impact, that's one of the issues the president will address saying if it's only us imposing sanctions, how effective is that going to be? you will not have inspectors on the ground, so how are you better off? that is the argument he is going to make with the inspectors on the ground and without them. will continue the conversation after the break. president obama is due to take the stage any moment. there is the live shot. we are waiting his defense of the deal with iran. ♪

pimm: welcome back to the bloomberg market day. i'm pimm fox. olivia: where's till standing by

to hear from the president. he's speaking about the nuclear deal with iran, defending it from critics in congress. we will bring it to you live once he comes out. this is the same stage president kennedy took to defend his energy of trying to strike a deal to reduce nuclear armament with the soviet union. pimm: we will bring that to you live as soon as the president takes the stage. but look at some of the top headlines. notpublic and voters will start selecting their presidential nominee for six months, but the female -- but the field of candidates is divided between front runners and also-rans. fox news identified the top participants for the prime time televised debate. rick perry and six other candidates will take part in an earlier event. donald trump will be front and center on stage. he warmed up for the debate on bloomberg by slamming his

closest rival, jeb --. raises 100when bush some odd million dollars and weights because you are not allowed to talk to the back and tell them and the money is , then theytheir never talk. if anybody believes they never talk, it's a joke. rick santorum and carly feared arena are among the candidates that did not pull high enough to make the debate. stocks in greece fell for a third consecutive day, but the performance was not as bad as monday when the market posted the biggest selloff in nearly three decades. monday was the first trading day following a five-week shutdown after the debt crisis. they hope to conclude a bailout package within two weeks. olivia: wendy's is reporting higher profits. they are continuing their plan

to have company operated restaurants. sales were lower than a year earlier but still better than expectations. wendy's reaffirmed its four year earnings for cast and shares are up 14% year to date. kellogg's, the world's largest cereal maker says it will stop using artificial colors and flavors in its cereals and snack bars within three years. that toppedd sales estimates after snacks like pringles help to make up for the lackluster demand of breakfast foods. those are your top headlines. make froot loops without the coloring? pimm: you will have to use natural coloring. the markets are closing in europe, so for the latest, let's go to london.

>> we see stocks rebounding today. these are the main stocks we have been watching. rising the most in two years -- since the financial crisis, the earnings were the second quarter were upbeat and it also raised its capital target. italy pasta against bank has afterthe most in a year its second-quarter profit was a beat as well. the national bank of greece really taking a punishing. that is the detail. yu ill show national benchmarks, you can see gains for the most part, but the outlier is the athens stock exchange in greece, losing for a third day. 4%, but look about

at the banks -- down almost 30%. finally, i want to show you how the stoxx 600 is shaping up. a sixth day out of seven and this inch mark has risen about 17% this year. thank you very much. right now, the securities and exchange commission is meeting in washington. regulators are expected to vote on april that has been in the works for a long time -- it's part of the dodd frank legislation that would require each company to disclose the ratio of how much its chief tocutive gets paid relative how much everyone else at the company it's paid. so why this rule now?

david: there's been a lot of attention on how high executive hey has gotten. executive pay has gotten. figurese astronomical that get people excited and upset. when you look at the genesis of this particular part, look at that ratio over the years. it used to be 46 to one. now it's 331 to one. when barney frank put this into law, he thinks it will tell shareholders who have a greater say in compensation more about that decision and what ceos make relative to employees at the firm. you have to worry about the efficacy because that's going to very depending on the businesses they are in. does it include stock options and bonuses? david: we have to look at the final thing here.

it sounds like something that should be easy to calculate but in fact there are a lot of different aspects to that. part of the final rule would be an exemption of 5% of employees. they would have a lot of latitude and they could keep the median employee for three years, unless some dramatic changes happen. pimm: any arguments against this rule? david: yes, there is a big gap, folks who specialize in compensation, there's a dramatic drop-off when you go down to mid tier management. it shines a light -- pimm: is it going in the proxy? david: yes. it will be in 2017 if this rule goes through. that will provide a lot of

relief to these companies and many of them are figuring out how they're going to come up with these calculations. olivia: i have been saying that it is kind of useless but you did give us a stat that made me think twice, in the 1950's to the ratio was ask -- the ratio was x. her.: it has gotten the compensation packages have changed so much. you have industry saying -- stock-based compensation's and options are very different in 1980 compared to what goes on today. shareholders care about performance. the argument is that is what we should be focusing on -- performance, not this ratio. pimm: it would give you another metric.

thank you very much. olivia: i am signing off. will beming up, we listening to president obama. we are waiting for them to take the podium to stump for the iranian nuclear deal. ♪

pimm: welcome back to the bloomberg market day. i'm pimm fox. let's look at the top headlines. taiwan is bracing for what may be this drunkest storm of the year. the typhoon is taking aim at taiwan, china and some of

japan's southern islands. it slammed into one of the northern mariana islands with winds up to 100 miles an hour late sunday. power and water service remain out in the island. opening an extension of the suez canal. it would allow two-way ship traffic. egypt hopes it will boost the country's economy. pope francis says roman catholics who have divorced and remarried are still allowed to belong to the church. his remarks may hint of a change in the church position is currently catholics who divorce and remarry may not receive the sacrament of communion. those are your top headlines at the moment. we are awaiting president obama pass speech on the nuclear deal. guests.o bring in my

i'm wondering if you can speak about republican opposition to this deal. i know the head of the foreign relations committee has already introduced the joint resolution to block it. margaret: that's right. and what is rightly expected and anything can change over a long month in august, when congress comes back, lawmakers will probably take us this resolution to disapprove of this is ron deal. senator mitch mcconnell indicated yesterday that it is very likely to come up for debate and he wants any democrats to not try to use a procedural run -- procedural maneuver to block it. we are seeing some action to the president's speech today. we know he is going to talk about war and we have heard from

john mccain. we've heard from the head of the armed services committee saying if you oppose this, it's tantamount to war. we are seeing reaction from the republican presidential candidates and we have heard already from scott walker who said the statement -- the president could give the speech 100 times over and it would not change appeasement of iran and he would do it on day one. pimm: bill, i want to get your thoughts on the math and the house and senate. the the 20 the president said he would strike if this comes to his desk.

where does the president need to do the most politicking? to do theas politicking on a democratic side. it's pretty clear republicans, that is not unanimously come large majority will vote against the steel. he has to look to the second vote that will take place and whether or not he vetoes it, he has sufficient votes to sustain it in either house. he has to focus on those democrats who are undecided saying i don't have to decide is now. i will wait until the time comes otherwise i will get a lot of flak. most democrats will hold back. top: steny hoyer, the

democrat from maryland will lead other democrats to israel on monday and he will be followed by kevin mccarthy, a republican from california. he's going to lead her to five republicans to visit israel next week. what do you think they are going to come back with? bill: prime minister netanyahu is going to weigh in heavily. to theve to listen military intelligence and former officials in israel who have come out in support of the agreement. thought that they support the merits of it but they feel the relationship between the united states and israel is more important than this particular deal. you have division within israel in terms of looking at it from a military point of view, this relationship is critical to israel's survival. no other country is going to be with them as we have been with them. there's a difference of opinion that is not spoken much about and i would come back to the

united states and say to my thetary advisers, lay out contingencies. if this deal does not go through and sanctions come off from other countries, what does that mean? what options do we have? even though senator mccain says war is not an option, one commentator said this week in the "wall street journal" saying it's time to bomb iran now before they have nuclear weapons. so this is going to be a serious consequential debate and vote. i think the members of congress going to israel will get the israeli point of view, but they will want to talk to others to see how strong that sentiment is and come back here and talk to the american people. i think the president is not speaking to the general assembly today. he's talking to the american people because the american people according to polls are

about two to one against this agreement. if you ask another question -- are you prepared to go to conventional war today, with these same people be opposed to the agreement, that has not been asked. those kinds of issues will surface. i want to get your thoughts on john kerry. the secretary of state as appeared before the gulf cooperation council to reassure american allies in the region. state'sthe secretary of standing with congress? kerry, hesecretary has many relationships with these folks. reliving obama, he is the iraq versus iran debate and the debate of all past wars, given his experience in vietnam. they are all looking at two sets of numbers when you look at the democrats -- 44 democrats and house, 13 them credits in the senate.

that's how many would need to break away for obama to be in trouble. when you are looking at the way they are all approaching this message, it's a matter of the ability to sustain that detail on president obama's side that is driving their calculation about who to target and how to shape a message. one interesting side issue is to see which democrats have the with a to vote resolution of disapproval. some of them will have the ability to do that if they need to politically in their own districts -- may be in florida, new jersey, or new york, but only if president obama is confident he can hang on to the number he needs to sustain a veto. we are awaiting president obama to speak for a knotty and said american university. a note that senator barbara boxer of california and tim

kaine of virginia say they wilson the president in this nuclear deal with iran. we will have more live coverage of the president's speech coming up on bloomberg market day. ♪

pimm: this is the bloomberg market day. we are waiting for president obama to give a speech at american university in washington about his nuclear deal with iran and counter some of the critics of the deal. right now, let's go to julie hyman for today's options inside let's take a look at what markets are doing at this hour. we have seen stocks rebound after a four-day slump on the doubt. the s&p up .75%. joining me today is the senior equity derivatives strategist at bgc partners. becaused call it a mix

the jobs report was weaker than estimated, but on balance, between the trade of the set and ratings on the economy, it looks good. that's in the calculator -- they lag and someone will care about that. that's been at the highest level since august. if that number is right, you can see second quarter revisions. unless we get a huge disappointment. we have been watching the fed funds on bloomberg. it looks like there's a 40% chance of it being priced in in the fed fund futures market. how does this translate into

your trade for today? this is catching a falling knife with a catcher's mitt. win if the stock is flat or higher. buying one of the 67 put expiring at the end of september, selling three of the 63 strike puts, you can do this for $.44 or more. is flat or bounces, you will keep the initial credit . if the etf gets down to the 63 strike expiration, you see the biggest problem there. julie: how can you use in this trade? if you went up more substantially? only if you get a real

major downside scenario. it's not likely to see another major leg lower. this is the kind of trade for them. julie: thank you very much. in oure want to bring white house correspondent standing by as we await president obama's speech. you did a great job outlining the details of what and who needs to be convinced. andongressmen house democratic senators in the senate. for can the president do those lawmakers to maintain their support? been greate's never at the schmoozing game or trading game. he is not lbj and he has said so himself. one thing he's attempting to do is even if in resistant to this now feels like the real thing,

much like in the case of iraq in 2003, history may bear out his argument. it's not like what can i do for you, it's like don't we wrong because i was right and the bush administration was wrong. another part is to speak compassionately about israel and give them political security to say you can love israel and support this deal. vice president biden is trying to help the democrats find a comfortable space to make that argument. lateresident will is quite getting here. hadeft the white house minutes after the speech was was to begin. we're seeing headlines the u.s. has made its first strike on isis in syria from turkey. the president cares a lot about this speech and wants to tie his legacy to jfk. for thisre's a delay

speech, there must have been a good reason. bill, your reaction to the headlines that the united states has long -- has launched drone strikes on isis from turkey. bill: long overdue. we've hesitated far too long to take on isis and go into syria. we should have created a safe zone along time ago, so this may be a positive turning point and it's overdue. pimm: we're going to have more and we are of course awaiting president obama. you will be speaking on the iran nuclear deal. this is the bloomberg market day. ♪

president obama: thank you so much. thank you very much. everybody, please have a seat. apologize for the slight delay. even presidents have problems with toner. [laughter] it is a great honor to be back at american university, which has prepared generations of young people for service in public life. i want to thank the president and the american university

family for hosting us here today. kennedy,ago, president at the height of the cold war addressed this same university on the subject of peace. the berlin wall had just been built. the soviet union had tested the most powerful weapons ever developed. china was on the verge of acquiring a nuclear bomb. years after the end of world war ii, the prospect of nuclear war was all too real. with all of the threats we face appreciates hard to how much more dangerous the world was at that time.

in light of these mounting threats, a number of strategists in the united states argue we have to take military actions against the soviets to hasten what they saw as inevitable confrontation. but the young president offered a different vision. strength, in his view, included powerful armed forces and a willingness to stand up for our values around the world. but he rejected the prevailing attitude among some foreign equatedircles that security with a perpetual war footing. , he promised strong, principled american leadership on behalf of what he called a practical and attainable peace. not on a sudden revolution in human nature