this is nightly business report with tyler mathson an >> coup in turkey. late reports today tha m aga th civilian government. in that nato country. brazilian economy. people are shopping. factories are revving up production. why the u.s. economy seems to be gaining steam even in the face of dploebl heaon spu his potter's wheel into a pot of gold. all that and more tonight on nightly business report for good evening and welcome. sue is off tonight. a big week for the stock market, bi developing story out of turkey.

the turk i military has attempted to overthrow the civilian government. bridges to the city were closed. the head of the country said security forces had been called in to do quote, what is added the if government elected by the people remains in .harge. gold rose as did the dollar versus the lira. money moved into u.s. bonds and out of a turkish based eric ed . john, has there been rear s departme? >> no, it's pretty early in this. they're watching, trying to determine what has happened because with we don't know yet how mu of the country the military controls. whether it's been successful, only in a cole turkey is a nato ally.

very streenlgically located next to syria. ir. we have u.s. military assets in turkey and the instability raises questions about those asse but first, the united states government has to figure out what's going on. >> talk to me to the ext youn a with preside erdogan, who has r there power th r about 14 years. .nd our relationsh >> well, it's been strained. lately because prime minister erdogan has been moven in awe tor tear yan direction. hasn't done quite enough to take on the islamic state. he's done more lately, but of

course, the turkish airport was hit a few weeks ago. the goveth past. if this is successful, it would be the third in the last half century, but the united states by supporting turkey's membership in nato, has been trying to bring it into the family of nations that are more stable because it's such an important potential ally. has it delivered on all of the hopes that the united states has had for their alliance? and we've got to wait and see just what the implications are of this development today. tur shares a long and porous border with syri. now to the u.s. economy, which is surprising some with its . american consumers put to rest a e concerns that t impact here. retail sales rose 6% last month.

manufacturing maybe on the mend after a report today showed that industrial output, which includes just about everything made by factories, is picking up. this follows positive data on the jobs market and an uptick in inflatio steve liesman has more on the economy that >> a slew of economic reports showing an economy on the rebound in the second quarter, while comments from fed officials suggest only the possibility of modest rate hikes this year, if at all. atlanta fed president saying that the fed may yet manage one or two hikes in 2016. hi the second quarter economic rebound picking up steam with stronger sales data and what drove sales in the u.s. in june apparently was auto and home furnishings. aparable and accessories continues to be tough.

>> the data combined to 2.7% and a considerable improvement over the 1.1% from the first que da. sentiment was lower than wall street expected and inflation, a touch hotter. >> some of the recent data, some of the hoe th creating a dynamic where the fed's going to run out that's going to force the dollar higher and risk off as we saw last august. same scenario again. >> for the moment, all the signals from the fed that they're willing to abide higher in inflationca grounded by conc brexit or the election. i'm steve liesman. >> a week that saw sizable stock market gains finished mixed. the dow was able to eke out another record close.

blue chip douw up, and s&p 500 which had had records fell fraction alley, so it's a streak is over, but another continues. this was third straight week of gains overall for stocks with all of the major averages seeing gains of 1.5% or more. meanwhile in france, french officials spent the day tad mots deadly attack in nice. it left 84 dead including ten children and adolescents. more than 20 >> tonight, france is once facing an uncertain future. just 24 hours after an athat left 84 dead including dozens of children, over 200 people injured, many critically, world leaders including u.s. president obama and french president are

tieing it to terror. >> we will not be deterred. wee we're going to keep working attacks. we're going to keep taking out isil leaders. we're quoing to keep standing with our partners from africa e afghanist and we are going to destroy this vile terrorist ors. >> just 24 hours later, the -- in nice has been cleareded. there's a strong smell of chemicals in the air. there were workers here all day long cleaning this street and it seems as if things are slowly returning to normal. the question of course going forward is how france or any country, including the united states, can prepare itself for what appears to be a lone wolf attack on a mass u.s. and french authorities have confirmed the suspect was not on a terror watch list and wasn't known to local or national intell.

we saw mourners gathering throughout the day, making makeshift memorials as well as , b not the same nice ca kind of tone we saw in paris during earlier attacks. that would seem to signal this seems to be the new normal in france. for nightly business report. months ended in y expanded 6.7% june. holding steady at the first quarter pace of growth. industrial output and retail sales were healthier, but much of the weakness was in the roperty secto a has been credited for helping china avoid a hard landing. private sector investment ground to a halt and that raises questions about whether one way china plans to grow its economy is with start ups.

they are offering incentives to entrepreneur >> for dog owner, if you've ever wondered what this means, damian is building an app for you. the 26-year-olr mobile devices. to help owners better commun >> the way your pet bark, it translates the barking voice and send it to your hungry. i need to go out. yeah. all based on data. the data we built. >> he is among an merg young ch ups encouraged by the government's pushed.

instead of head iing to wall li return to shanghai sensing an opportunity in the country pet industry. >> it's easier or it's caused me less. compared to do my smart upstat it's a mature industry back in the states. any of the western countries. >> his team believes the gadget the $15 billion pet industry has grown by over 30% annually p for the last f for these young entrepreneurs, authorities here are offering tax break, subsidizing rent and granting money. he was initially able to r $150,000 to fund raising rem >> so, i actually applied for

some money from government. pretty fast. that's raising from the fund and the macro is not too good in china right now. pe >> still, inspired by the late apple founder, steve jobs, he g his bedroom s into an office to china to live an easy life. to make more friends. i come back to china to do a business. >> a business he hopes to take global and put china's start ups on the world map. for nightly business report, shanghai. still ahead, the best places to put your money despite the global incertainty. our market monitor has idea

go budget deficit predic will rise this year. a rise and it reverses the tre of improving deficits. the white house cut its forecast for growth. the government now predicts that gross do wl rise 1.9% this year and 2.5% in 2017. fiat chrysler is create iin 1,00 billion. the decis is part of the company's plan to increase production of jeep suvs as well herbalife has settled

to pay $200 million e and will overhaul its business practices. though the adpreemt ends an investigation, the agency said they're going to have to tart operating legitimately. >> today's $200 million settlement, one of the largest obtained be i the federal trade commission, will provide compensation for m of the drigters. the order will prohibit deceptive marketing tactics such as the promises of a lavish lifestyle and untold riches and the false implication that typical recipients are l to earn career level income. >> it marks a financial setback for the hedge fund manager, bill ak mann,t against herbalife. he alleges the accusations were

improper, but the fftc stopped authority of calling it a pir mid scheme. profit and revenue fall at citigroup. they saw both metrics drop as lower interest rates draggeded down results. despite that, ci managed to beat estimates. low interest rat fargo, thek eh to arterly profit deep match street estimates. company's cfo spoke about how wells fargo is navigating through the low rate environment. >> we are in a low rate environment, but as you'll notice, we managed to generate $5.6 of income. we did it by growing loans 9% every year, by growing deposits.

>> shares of emphasis plumeting at the firm cut its yearly revenue guidance citing concerns over the breck it fallout. the company also reported . shares down nearly 9% on the day and yahoo! mr for its web assets as soon as next week. "the new york times" said final bids are due on mo the "new york post," verizon is expected to emerge as the top bidder. verizon shares unchanged at $55.84. said a patient died while taking part in an experimental drug trial. this is the third patient death in the study. new patients. shares of the company fell 11% a

penny. this week's market monitor finding opportunity in large cap stocks even though they have underperformed a his first time joining us, managing director and partner. ron, welcome. o see you. start with why you like some of the big cap names you do. we'll get to them in a minute. why are you going big and tech? >> first off, being the inaugural visit here, i thought that i should talk about low interest rates, lower, longer and things like home depot without taking advantage of all this low interest rate, but i thought i'd go big and tal we exited most of europe actually saying that we don't really know what's going to happen and the u.s. seems to be chugging a long. steve liesman's report was pretty positive and we t

and it's a little bit safer to and mid caps outperform form trks okay with us. we're kind of a cons we think it's safer and play the u.s. for the most part. >> talk about a stock that spent a heck of a lot of the last 15 years kind of going nowhere, but th microsoft. you think it can do even better. >> yeah, i think we probably owned it on and off for three bought it a while ago like a dichbt company. they embrace the cloud. they're doing a great job in creating a private cloud. which is only seconds to amazon in size and subscribers. they're replacin their pc with other programs.

i think for now, they're tradi ab 61 bucks and we think. i think it's worth a lot more. >> got a price target of 65 over the next 12 months. google is your second pick. a price target of 1,000 over the next 12 months. tell me about first off, their senior schmgement till there fr these are guys that are really smart. they're starting to really leverage all of their different programs. android, the dominant player. in phones. they're still 80% of the search and re of what's happening around the globe. clouds the thing. sear big data is the thing and they're doing a great job of leveraging all these together and they got the brand. >> and a final quick thought, please, on ali baba.

a price target of about 110 over the next 12 months. >> that's been frustrating risk. they have been growi t big da data. not just consumer spending now. now, they're big data. they have been expanding globally. we think with only about 5 or 6% of chinese buying online, they've go no their subscription base is the same size at the entire united states. and they're getting clearer and their can accounting is getting cle clea may be a big winner. >> thanks very much, ron. coming up, he found his as a a kid at sa design empire. it's tonight's how i m.

pokemon go overtook candy crush. its popularity could be a turning point for the burgeoning augmented reality industry. julia boorstin has our story. >> it's dominating the streets and ruling the app stores. it could open the flood gates for augmented reality in everm advertising to manufacture iing. >> thin earliest of innings. mixed reality, virtual reality. this is a very simple, but brilliantly ex f except many more to come. >> the market is po gr to as much as $90 billion a year by 2020. that's three times the projected buys of the market for virtual

reality according to digi capital. bliper uses it for marketing, layering advertising material over real world products. google and -- are among its big backers. microsoft augmented goggles are already available to developers, though consumer date ha been announced. start up dakry designed reality helmets for workers and industrial the ceo saying augmented reality's applications are going to ygenerate billions in productivity. >> you can fix everything right the first time. you had a chance to visualize and manage this human data interface down by 10%. many people use it every day and don't ooempb realize it. for the likes of these snap chat

lenses, bringing another dimension to our every day lives. >> it was a passion he disco..ed at summer camp, but it took jonathan adler years and lots of ups and downs to spin his potter's wheel into a successful design business. he's the suggest of tonight's how i >> fresh, stylish, excentric. these are words jonathan adler uses to describe his $100 millio empire built from behind a pottery wheel. growing , adler f >> my first was at summer camp when i was 12 years old. the second i touched clay, it.

when my farnts came to get potta passion. >> he tanded brown university, but spending most of his time in the pottery studio at rhode >> she said you don't have what it takes. you should move to new york and become a lawyer. >> he took that advice and moved to new york city. his first job working at a talent agency. sfwl i got fired from that first job and then i moved to ano and got fired, so i just started teaching pottery class at night and making stuff during the day while looking for jobs. >> finding himself no closer to a real job, his parents busiuraged him to make p i called up the buyer and he

came over to my studio participant an at my pots. these are great, i want to order them. >> that was your first sale. >> six months later, i hadn't been paid. i called them up, oh, yeah, you're the guy who made the striped pots. why didn't you include an invoice? what's an invoice. i was making them myself. i would roler blade to the studio, leave at 11:00 p.m. seven days a week. >> he realized he couldn't keep up by himself so he partnered with an organinie his designs an a big order from pottery barn gave him the confidence and the . >> i'm going to take this and open a store. >> the first store opened in new york's soho neighborhood in 1998. in 2001, a los angeles outpost.

miami, chicago, san francisco quickly followed. he creates a brand manifes and once i came up with those three words, i thought well, those don't just have to apply to pots. >> today, there are 30 stores globally selling adler's furniture. home accessories and yes, pottery. you think we are you in this y in 20 years? >> i am restless and relentless and obsessed with design. whatever happens with my company, however it develops, i see myself i until i kick the budget. >> and when i asked him wh he w recap now of our top story out of turkey, the prime minister says a group within the military

has attempted to overthrow the government. according to report frs the ground, gunfire was heard, jets seen flying over the capital of ankara. bridges have been closed. the head of the city said the government is in charge. the military says it is in control. gold rose as did the dollar and lira and money moved into u.s. turkish efts. thanks for joining us. have a great weekend, everybody.

gwen: terror in the south of france casts yet another shadow over the 2016 presidential again,n, redefining, yet the choices at hand. we're at the hanna theater in ohio, working to put it all in context, tonight on week."gton donald trump went to the heartland today to select governor mike pence as his vice presidential pick. that wille ticket help republicans win the white house in november? it blunt democratic .riticism secretary clinton: this man is the nominee of the party of lincoln. are watching it become a party of trump and that's not just a huge loss for our is aracy, it