Transcripts For BLOOMBERG Bloomberg Surveillance 20240622

An historic and agreement on Irans Nuclear program. The u. S. And other global powers will ease sanctions that have crippled irans economy. That is likely to lead to iran selling more oil, sending the price of oil down by the most in a week. It will have a 60 day review by congress. Israel says it will lobby american lawmakers to reject it. We will hear from president obama in about an hour. You can watch it on bloomberg tv at 7 00 eastern time. Greeces Prime Minister will not be able to count on his own coalition to support pension costs and tax hikes. Tsipras admits the austerity measures to Parliament Today will be set for tomorrow. Lawmakers must approve the legislation before talks on a new bailout. Paul krugman told Bloomberg Europe wanted to less screen to let greece no who is in charge. Paul krugman this is not about how much greece is going to repay, it will be about greece suffering. There is no escape. You do not get away from anything. And greece has made it clear that they are not willing to contemplate leaving the euro and had no bargaining power. It is actually a very sad day. It was a humiliation, kind of a ritual humiliation for greece. Vonnie that showdown with his own party may lead tsipras to reshuffle his cabinet. Wisconsin Governor Scott walker says voters need someone who will stand up for america. In a speech near milwaukee, he announced he is running for the republican president ial nomination. He plans on bringing his combative style to the white house. Scott walker my record shows that i know how to fight and win. Now more than ever America Needs a president who will fight and win for america. Vonnie walker may be best known for taking on Government Employee unions. He is the 16th governor to enter the president ial race. Bloomberg news is reporting that king wall unit group plans to offer 23 billion for micron technologies. Tshinghua. In baseball, cincinnati plus fraser won out slug edison of the dodgers in the final round. He won the home run derby. Were you guys watching . Tom a little bit. It is sort of boring, to be honest. What a great story though, from the great state of new jersey. Equities, bonds, currencies commodities. I could do in our data check. Let me go to oil. An accord in vienna oil prices lower. We have not reached 50 a barrel yet on american oil. The swiss franc weaker. On to the next screen. I have euro swisse there at the bottom 1. 0416. I want to go to the bloomberg terminal to talk about the u. S. Equity markets. Jpmorgan out with earnings. Brad hintz will join us to brief us on jpmorgan. I do not think we remember how we came out of this what a comeback we have seen in the blended index. Jpmorgan is doing better. Brendan we are talking about different kinds of companies. We are seeing a cyclicality of lending. Then now these are banks trying to figure out what they are. What is their trading desk look like . Tom adam parker joining us from Morgan Stanley. We will quiz him in a busy 7 00 hour. The president is scheduled to speak in the 7 00 hour. It has been a 12year standoff on uranium, and an agreement is made earlier this morning between diplomats, simply to bring persia back into the western community. Indira lakshmanan joins us. Also, Elliott Gotkine is in tel aviv. Indira, let me start with you on the basic idea of a moment of celebration. Can we say with certitude that there is a deal and a deal to bring back to congress in washington . Indira there is definitely a deal. That news broke from multiple delegations we have been covering in vienna for the last 19 days. So for sure there is a deal. We actually have a copy a text of the deal, and we know several important things. One is that september 15 is the target date by which iran is supposed to have taken all the steps laid out to limit its Nuclear Program and u. N. Monitors from the iaea need to verify those steps. At that point iran would be eligible for both sanctions will for bulk sanctions relief having Oil Sanctions route and having access to 150 billion in overseas frozen access in overseas frozen assets. It will not happen unless the iaea checks the box that they had done all the steps including questions about the possible military questions. Brendan looking at the actual text of the deal, given what you have heard from congress over the last six months, can you handicap the likelihood of this getting through congress . Indira i think it will be hard to get a majority in congress approving the deal. The Obama Administration and the president s top advisers will have a big job ahead of them going to congress and classifying why this is a good deal, putting a 10 year limit on enrichment by iranians. Tom that is able to statement by you have had no sleep. What are the consequences if Congress Says to the president and tehran we are not going to do this deal . Indira the president can veto that. I do not think congress has vetoproof majority to reject it. I do not think there are two thirds of the senate who will say no. Tom Indira Lakshmanan in vienna this morning. What time is it, 2 00 a. M. , that this came out . We need to go with there is a little bit of pushback. I speak lightly in respect for israel. They are not happy. Elliott gotkine is in tel aviv. Brendan benjamin netanyahu, right out of the gate, showing his disapproval. What leverage does he have right now over the actual deal . Elliott Prime Minister netanyahu is going to be going to congress and trying to ensure that congress does kill the deal. Netanyahu putting his opinions out there on twitter, as he is so happy to do saying that when you are willing to make a deal at any cost, this is the result. We can see it is an historic mistake. His deputy Prime Minister went a little bit further saying it was a historic capitulation to the axis of evil headed by iran. Brendan what this Public Opinion in israel look like on the terms . Elliott the country was very much divided between right and left but one of the few things many israelis agree upon whether on the opposition or supportive of netanyahus ruling coalition, is that they do not want iran to get a Nuclear Weapon. They know that iran has even recently worked with the supreme leader, talking about the destruction of israel and how that is an objective of iran and how it should be an objective of the world. Politicians of all hues here are against iran getting a Nuclear Weapon. Tom you mentioned the president will speak around 7 00 a. M. This morning, in about 50 minutes. He will need to speak to democrats as well as republicans in opposition. What does the president need to say to his party . Indira what he will say to the American People is that this is an historic accord that is preventing a rogue state crime preventing a rogue state from developing Nuclear Weapons. He will say that it needs that it will bring peace to the middle east that it is a win for the United States and the west not just for iran. Tom Indira Lakshmanan, thank you. Elliott gotkine as well. Lets go to our twitter question of the morning. Willie iran deal affect any more will the iran deal affect anything more than oil prices . We appreciate your responses. Coming up, brad hintz. Tom good morning, everyone. Bloomberg surveillance. Vonnie the son of a Boston Police captain is accused of plotting an attack on a university. He was arrested july 4 in a small western massachusetts town. He is facing a weapons charge. He is mentally unstable and said that he wanted to fight for the islamic state. Bloomberg news reports cargo jets would be 55 million before the nasas new horizons spacecraft is getting the first closeup look of bhutto this morning. The unmanned probe for 7800 miles of close look of pluto this morning. I think we travel 3 billion miles everyday between the big inning at the end of the show. Brendan i am amazed. Just the idea that we might get anywhere close to it, i am amazed. We are going to talk about something much easier to conceive. Wells fargo, bac bank of america jp morgan. I will show you a chart inspired by chris whalen. Boring banking. This is mortgage debt total. It can drop sharply, but we saw a drop out of after 2008. Brad hintz is with us from nyu also once a banking analyst himself. Are we returning to boring banking . Brad hintz we are returning to boring banking in the sense that rates are going to rise and we are not getting great refinancing in the mortgage markets. You will see analysts and observers beginning to look at loan demand, that sort of thing which is traditional banking. In the midst of that, we still have an Investment Banking move that is going on. An awful lot of the focus of jpm will be on the corporate and investment sector. And of course when wells fargo comes out, it will be the traditional banking issues how is loan demand doing . What is going on in Retail Lending . And yes banking, we are going to be focusing on rising rates what is the effect of rising rates . Brendan how do you rate the relative importance . Mortgage lending up, year on year, almost 10 sequentially in the last year. How do you rate the importance of the Investment Bank versus the plain old boring lending bank . Tom brad hintz what will be the headlines . How the Investment Bank did this. If we think of actually the exposure, jpm although it is the leader of Investment Banking, it is a much more Diverse Group than goldman or Morgan Stanley or credit squeeze. Just a less expensive percentage of total revenue. Tom we know jp morgan makes . 24 on the dollar. This is a minting money combine. They take 94 billion down to 34 billion down to 23 billion. There is concern about revenue growth. They are trying to get back to 4 revenue growth. How will they do that . Brad very difficult to do. Global Financial Assets has to be the tom you have to go global to do this . Brad are you going to get u. S. Financial assets growing as rapidly as global . No, youre not. Maybe you can get to a 5 growth rate if you compare global assets to global gdp growth. Tom a 2 billion expense cost will american jobs come out at the expense of him growing globally . He says we have to cut back on the u. S. And cut jobs so we can build out of the nation . Brad he wants to avoid the capital charge. You see him tightening different parts of the business around because of it. Will it have some negative effects . I think most of his come back will affect things like hedge funds. He will be tightening his brokerage business. Tom the mail that i get that says the banks will tighten up in the u. S. So they can expand abroad you do not buy that thesis . Brad i see the banks tightening up on lending because they are worried about by doing that what you are seeing is growth of thirdparty lenders coming in. We do not know where that is all going to play out. The fed is on top of that one, but certainly that is one of the issues. It is becoming more issues it is becoming more difficult for a corporate treasurer to assume the bank is going to be there. Tom is jp morgan the best run bank in america . Brad pretty close. Goldman sachs is right there. Brendan coming up on bloomberg surveillance should jamie dimon benighted . You decide. Tom 94 billion down to the operating income of 34 billion and they take home 23 billion. Jamie dimon gets 24 billion of that 23 billion. I am kidding, it is a joke. Adam parker with us later from Morgan Stanley. At 7 00 as the president speaks, we will also look at Jpmorgan Earnings. Stay with us worldwide. Bloomberg surveillance. Good morning. Tom good morning, everyone. Bloomberg surveillance. There are about 18 beds 18 beds that feature Brendan Greeley today. 18 opeds that feature Brendan Greeley today. This is a superb sessay. From roger cohen. Tom i thought of you, brethren the moment i looked at this essay. Give us your perspective i thought of you, brendan, the moment i looked at this essay. Brendan the most important part of that piece is the question by robert cohen himself. Roger cohen himself. What is germans role internationally with itself . This is the problem, that germans are very reluctant to feel guilt about this. They have dealt more than any other nation with the concept of guilt. Even though it was german hot money that went to greece, french hot money that went to greece, they do not think that any of this was in any way their fault. They are unwilling to feel guilt about it, and if you cannot feel guilt, they cannot negotiate. They are not having a german discussion about the overall tom i did hear france versus germany. France was out front in trying to get reese some form of different deal. What you are reading over the last 48 hours, do you separate france out as newly separate from germany . Brendan i do but it still seems like germany gets what germany wants. If you look at the assets sale mechanism, that was a german suggestion on friday. It is in the german agreement on monday. Tom brad hintz is a professor at new york university. Part of this is who owns this paper . I am told the governments own the greek paper and the banks are removed. Do you buy the idea that on a derivative basis, if this thing falls apart, there has to be in effect on bnp sarah about on bnp paribas, socgen, Deutsche Bank . Brad we have seen the stress test on this, and presumably of the banks have gotten enough down. It is not going to be a major hit to the banking side. I do not think i would like to be invested in the banks is greece breaks out at this point, but that is a different issue. Tom have you been called by barclays to take over jenkins . Brad waiting for bobbie diamond to come back. Tom breaking news on Bloomberg Brad Hintz says diamond should return. Confusing. Brendan tsipras is having his own battle with the Greek Parliament and his own coalition. Can he hold onto it . We will find out. This is bloomberg surveillance on bloomberg television. Good morning. Tom good morning, everyone. Bloomberg surveillance. Oil 51. 14 a barrel. Here is vonnie quinn to tell you why. Vonnie a breakthrough that promises to end a 12year standoff that has crippled irans economy. In vienna, diplomats have agreed to a limit on irans their program. Economic sanctions on iran will gradually be lessened. That will allow iran to ramp up Energy Exports and that has Oil Prices Falling today. Congress will have 60 days to review the deal. Israel indicates it will lobby u. S. Lawmakers to reject this. We will hear from president obama in about a half hour from now. You can watch him on bloomberg tv beginning at 7 00 eastern time. The Prime Minister of greece says two days has two days to lobby for pension cuts and tax hikes. Alexis tsipras is submitting the measures to parliament. Lawmakers will vote tomorrow. Dozens say they will oppose the cuts. Tsipras has already run into opposition from his own cabinet. The Greek Parliament has to approve it before talks can start on a new bailout. In puerto rico, plans to restructure 72 billion in debt. Puerto rico has said it will come up with a debt Restructuring Plan by august 30. No word yet if the government will repay bonds issued less than three weeks from now. It is a recordbreaking performance for facebook. They became the Fastest Company to reach 215 billion in market cap. Facebook went public just over three years ago. The previous record holder was cool, which needed eight years 250 billion. Facebook trades at five times the average in the s p 500. Harper lees new book is on sale today. That is the novel she wrote before classic, to kill a mockingbird. The new book tells of a grownup and her aging father. Brendan we do not have a confirmation that Alexis Tsipras is considering stepping down that david is sitting in athens. Alexis tsipras passes reforms and then resigns. Is that just wishful german thinking . David it may very well be, but i have heard that as well. It is possible. He faces a lot of challenges coming back to Parliament Meeting with members of his own party. We will have to see what happens in the next couple hundred days. The deadline is very short. Brendan what does his own Coalition Look Like right now. What is series of what is syriza the party doing . David we saw the Deputy Foreign minister resigning last night. There are reports more could be on the way. It looks like it has the potential for splintering or changing in the next couple of days. Brendan you have been doing great reporting for the real economy of greece in the background has always been how much time we have left until the actual Greek Economy starts to fall apart. What is that timeline from your perspective . David that varies by sector. You mentioned the pharmacies i visited yesterday. That pharmacist says business is pretty careful, but he has three months of medicines available so he can stay in business that long. I think people are acutely aware of the fact that whatever happens over the next couple of days, they are looking at prospects that are pretty brief that are pretty bleak. Brendan no guarantee that these measures will be passed in parliament. Thanks, david. Tom lets turn our attention to europe or it Barnaby Martin is the head of european credit strategy at bank of america, merrill lynch. He writes brilliantly on the use of cash. This is one of the great untold stories. Europe is not the United States. Brad hintz is wealth brad hintz is with us ats well. Lets start with a culture that says i am a medical company, a health company, a Pharmaceutical Company in europe. I do not lacked i do not act like johnson johnson. Why is that . Barnaby martin it is due to political pressure. Share buybacks do not make them empowered. Francois hollande in france is telling companies you have all this cash, do not spend it on share buybacks. Tom i think i can speak for mr. Gabelli this morning that he would like shareholder rights, give us the money. Will there be a change to make european use of cash more like what brad hintz knows in the United States . Barnaby we will have a. We will have a total of calm. Companies are holding cash, and it is because every quarter of every month, we have a crisis. Tom do you buy this brad . Brad i certainly combined the fact that you would be much more cautious as a european ceo than you would as a u. S. Ceo. You can see it in the m a numbers. The caution would be sort of natural to that. The issue is sort of the longerterm. This is a longterm trend, not just this cycles trend. Barnaby there is one Thing Companies are doing in record amounts, and it is not buying back shares. It is buying back bonds. And that makes no sense. Tom exactly. Why arent they issuing bonds like Apple Computer . Barnaby the ecb has cut rates to negative zero. Tom barnaby the billions of cash that they have in the banks possibly they are paying Interest Rates on those. Rather than paying interest on my debt and my cash, the easiest thing to do is buy back my bonds. Brendan mario draghi has been doing everything within his power but that phrase within his power is the most important phrase. Barnaby we are also looking at unintended consequences. There are unintended consequences to qe. Tom we have had tantrums here in the United States, and there is a perpetual tantrum in europe or it vonnie we had a 30 big figure why didnt Companies Make more acquisitions with the euro, much stronger than it is now . Barnaby you are not just going to jump into an acquisition. We tend to have potential petrol tantrums in europe. I said in the piece i wrote a few months ago that Monetary Policy for the ecb is causing this increasing interactions in asset prices, and it is causing a difficult environment. Tom will we see transactions and combinations because of low nominal gdp and the search for revenue . Jpmorgan has to go find revenue on mcfarlane talking at barclays in the ft, rumored speculation of going out to find a retail dovetail with barclays to spin it off. The search for revenue in europe is that going to occur . Barnaby enough. Are you seeing european comedies buy u. S. European Companies Buy u. S. Companies . We are nowhere near there. Brendan weighing in on what caused last years flash crash in u. S. Treasuries. We will discuss. This is bloomberg surveillance on bloomberg television. Good morning. Tom good morning, everyone. Bloomberg surveillance. If you are not doing well, you try to pay a bill each day. Degrees pay a bill this morning . Vonnie did greece pay a bill this morning . Vonnie it was 95 million u. S. Worth. Tom we saw the headline, i am thinking three or four hours ago. This is an interesting controversial, and shortterm single best chart. Brendan yesterday five Government Agencies tried to its plain a Single Movement in treasuries last october, issuing a report. That is the subject of todays single best chart. This is intraday trading ranges in treasuries, the distribution of the normal range. The median right there is about 8 bps. 37 bps in about an hour. That was the range there. There was no news, there was just a little bit of consumer news that that traded on, so the treasury department, among others spent 76 pages trying to figure out why it is you get that kind of a movement in treasuries without much news and it may not be that big of a deal. Tom i think that is precisely right, and 76 pages . It is a long report, interpreted the same way by you as matt levine of bloomberg view. I encourage everyone to read matt levines oped, which is just simple area this is normal noise. Brad hintz is with us. This is what happens in a trading environment, isnt it . Brad treasuries is such a liquid market. This one there are events, tail event you cannot explain. Can we trust the masters as the freight can we trust the bastards, as the phrase goes. Barnaby we can trust the functionality of the market. I think it reflects the relation of more actively traded and algorithmic type investors. Tom if i ask you anything about libel, you are allowed to stand up and walk off the set. Very good. Barnaby martin with us, bank of america, merrill lynch, on bps in the treasury. We have some wonderful top photos. Did the grew someone make it . Vonnie i believe they are all gruesome today. Gruesome top photos. A number of scary looking new fish. That is an actual fish, just 650 feet off the sydney coast near four extinct all came out on the ocean floor. They have potential stinging tales. All of that on one fish. That is near some of australias most popular eastern beaches. Brendan of course that fang ed beast was discovered there. Tom i can see every single effects guy in hollywood going what are we going to do with this. Vonnie Cincinnati Reds allstar todd frazier won this years home run derby. Fraser is just the second fra zier is the Second Player to win the home run derby at this ballpark. Isnt this lovely . The two met back in 19 the 98 in 1998 frazier and derek jeter. Tom it is a great story. Totally new jersey, rutgers, the whole thing. Very cool. Vonnie last top photo, one huge wizard of oz fan offering a 100 million reward for information leading to the information regarding the ruby slippers stolen. They disappeared a decade ago in august of 2005. They relent to a museum eat they were led to a museum each year. They were put into a safe every night. Tom there we are. We are not singing over the rainbow. We are not going there right now, plus we cannot sing anyway. Coming up, a conversation with Olivia Sterns, with tsipras economy minister. Stay with us. Bloomberg surveillance. Tom and a press conference in vienna, austria, as history is made again. Leadership from the six nations from europe on your left, and of course from iran to your right. Lets listen in very quickly. No one ever thought it would be easy. Historic decisions never are. But despite all the twists and turns in the talks and the number of extensions hope and determination enabled us to overcome all the difficult moments. We have always been aware we had a responsibility to our generation and the future ones. Thanks to the constructive engagement of all parties and the dedication and ability of our teams, we have successfully concluded negotiations, and we solved this case that lasted more than 10 years. Many people brought the difficult negotiations forward during the last decade, and we would like to thank them all as we would like to thank the International Atomic Energy Agency for its critical contribution and close cooperation. Tom she is a foreign minister to the European Union speaking now in vienna. Right now we need to go to athens. Olivia sterns not only looking at what is going on within athens, but within this massive debate within germany and europe and athens. That comes down to the tsipras government. Olivia . Olivia thank you so much, tom. I am within the finance ministry, the Economy Ministry and i am joined by the minister of the economy, george stathakis. I want to start with your reaction to the deal. For many years the story has been too much austerity is the reason the Greek Economy is not recovering. Now we have more austerity than ever. Is this Program Going to get greece going again . Mr. Stathakis i think this program has left austerity has less austerity than the previous one. It is an Austerity Program but has less austerity than the previous program, and probably that is one of the advantages. Olivia it is quite clear that getting these measures through parliament is going to cost Alexis Tsipras his coalition. When do you think we will see a Cabinet Reshuffle . Mr. Stathakis probably just after the vote tomorrow night. Olivia any chance we will see one today i go we will see one today . Mr. Stathakis i would not be surprised. Olivia you have been trying to sell off assets since 2011 and greece has only sold off 3. 5 billion. How will you come up with 350 billion euros to sell off . Mr. Stathakis huge privatizations obviously do not exist, but i think the 82 billion that the euro that greece would receive, 82 billion, quite a lot of money olivia you acknowledge, though, that you would not come up with 350 billion euro in greece . When on the banks going to open . Mr. Stathakis i think soon as the financing from ecb is back into the picture, which will take place just after parliaments in greece, germany, and elsewhere vote for the agreement. Olivia germanys is not vote until friday, so the banks will not open this week . Mr. Stathakis they will open just after it is back into the picture. Olivia is the going to have to be a bailin . Are depositors in greece going to have a haircut . Mr. Stathakis no way, because there is a lot of money 25 billion euros, for capitalization of the banks, so it is a direct bailout system. There is no way that a bailit will take place. Olivia finally, your party syriza, has blocked several foreign investments. What is the status of those investments . Mr. Stathakis there are some investments that face strong opposition heavy concerns. Every private investment, foreign investment, is welcome. Some investments are under debate. Olivia quickly, and energy deal with the russians good idea . Mr. Stathakis i think it is a good idea, getting access to Central Europe is a good idea. Olivia minister, thank you so much. The economy minister, george stathakis. We are waiting on the ela. Back to you, tom. Tom Olivia Sterns, thank you so much. We are waiting for Jpmorgan Earnings with brad hintz of Sanford Bernstein. In vienna, the drama of a press conference with representatives from iran, and of course the foreign minister of the European Union. Brendan greeley, when we look at frederica, she is controversial herself because she has been a great supporter of islam within a fractious european nation. Brendan she is really a pivotal figure in this, but i also think looking at her right now not as we speak but standing up a second ago at a press conference, we are reminded of just how important the solidarity between the eu and the u. S. Was in creating the sanctions that allow this deal to cap. Tom secretary kerry bringing this a quarterback, and the president speaking soon. The president selling this to the u. S. As a u. S. Transaction but when you see frederica up there, it is a multination transaction. That does not dovetail. Brendan a huge trading partner with the eu, huge security issue with the u. S. , a completely different question. Tom Barnaby Martin, thank you so much. And professor brad hintz will be held over with us as we look at jpmorgan this morning. I will do a Foreign Exchange view right now. Swiss franc is stronger. Coming up, Jpmorgan Earnings and a conversation from the president. Good morning. This is bloomberg surveillance. Tom oil declines as iran and the west agreed to in a story agreement in vienna. This will be heatedly debated in washington. There is talk ofs snack back sanction of snapback sanctions. Harsher austerities infuriate greeks. Tsipras must face his party and his nation. Jpmorgan reports with a very strong beat as well. We have a loaded hour for you. The president will bes leaking momentarily, and we will take you to his comments in washington. Right now, though, a press conference in vienna, and what is noted here is you do not see secretary kerry within the press conference. Mr. Zarif of iran and Federica Mogherini speaking as well. Theyre going through the details of the press conference. I think it is fairly dry as well. While all of this is going on, the first of the major banks report, of course mr. Dimon, jpmorgan i was very good earnings. Let us begin a most busy 7 00 hour with our vonnie quinn, who has some of the numbers for us. What do you see . Vonnie earningspershare of 1. 54. We were looking for 1. 1. 45. Noninterest expense was down. Last quarter it came in at 14. 88 billion. Now 14. 5 billion. So that is a better read. Equity 14 , and we are also seeing some more tom can i just say they do the clearest job of explaining their earnings of any of the banks . Right up top, 11 equity overhead ratio down to 59 i think they are very straightforward. Vonnie topline beating as well. 4 point 5 billion dollars, about 100,000 better than the for qwest 24. 5 billion, about 100,000 better than the forecast had. Tom this goes back to what brad hintz of Sanford Bernstein said earlier about this is possibly the best run bank. We need perspective from our Erik Schatzker looking at jpmorgan this morning. They make money. That is a safe statements, right, erik . Erik i would not say they mint money. The minting of the money, and brad, i am curious to know if you agree with me, is not going to come until we see a meaningful increase in Interest Rates. I was doing back of the envelope calculations, tom, the difference between what it can generate iand yield on the loans that it may president obama after two years of negotiations, the United States together with our International Partners have achieved something that decades of animosity have not a comprehensive longterm deal with iran that will prevent it from obtaining a Nuclear Weapon. This deal demonstrates that american diplomacy can bring about real and meaningful change, change that makes our country and the world safer and more secure. This deal is also in line with a tradition of american leadership. It is now more than 50 years since president kennedy stood before the American People and said, let us never negotiate out of fear, but let us never forear to negotiate. He was speaking bit about the discussions between the United States and the soviet union which led to efforts to restrict spread of Nuclear Weapons. In those days, the risk was a Catastrophic Nuclear war between two superpowers. In our time, the risk is that Nuclear Weapons will spread to more more countries, particularly the middle east the most volatile region and our world. Today, because america negotiated from a position of strength and principle, we have stopped the spread of Nuclear Weapons in this region. Because of this deal the International Community will be able to verify that the Islamic Republic of iran will not develop a Nuclear Weapon. This deal means every single one of the bottom lines that we established when we achieved a framework earlier this spring. Every pathway to a Nuclear Weapon is cut off and the inspection and transparency regime necessary to verify that objective will be put in place. Because of this deal, iran will not produce the highly enriched uranium and wealth and weapons grade plutonium that can build a nuclear bomb. Iran will remove 2 3 of its centrifuges and store them under constant international supervision. Iran will not use is advanced centrifuges to produce enriched uranium for the next decade. Iran will also get rid of 98 of it stockpile of enriched uranium. To put that in perspective, iran currently has a stockpile that can produce up to 10 Nuclear Weapons. Because of this deal, that stockpile will be reduced to a fraction of what would be required for a single weapon. This stockpile limitation will last for 15 years. Because of this deal, iran will modify the core of its reactor in iraq so that it will not produce weaponsgrade plutonium, and it has agreed to ship the spent fuel from the reactor out of the country for the lifetime of the reactor. For at least the next 15 years, iran will not build any new heavywater reactors. Because of this deal, we will for the first time be in a position to verify all of these commitments. That means this deal is not built on trust it is built on verification. Inspectors will have 24 7 access to irans key Nuclear Facilities. And access to irans full Nuclear Supply chain mines, conversion facility, and its centrifuge manufacturing and storage facilities. This ensures that iran will not be able to diverge materials from known facilities to covert ones. Some of these measures will be in place for 25 years. Because of this deal, inspectors will be able to access any suspicious locations. Put simply, the organization responsible for the inspections, the iaea will have access when necessary. That arrangement is permanent. And the iaea will get access that it needs to complete its investigation into possible military dimensions of irans pass nuclear research. And irans is prevented from which provided the basis for the International Communitys efforts to apply pressure on iran. As iran take steps to implement this deal, it will receive relief from the sanctions that we put in place because of Irans Nuclear program. Both americas own sanctions and sanctions imposed by the United Nations Security Council. This relief will be phased in. Iran must complete key nuclear steps before begins to receive new sanctions relief. Over the course of the next decade, iran must abide by the deal before additional sanctions are lifted, including five years for restrictions related to arms and eight years for restrictions related to Ballistic Missiles. All of this will be memorialized and endorsed in a new United Nations Security Council resolution, and if iran violates the deal, all of these sanctions will snap back into place so there is a very clear incentive for iran to follow through, and there are very real consequences for a violation. That is the deal. It have the full backing of the International Community. Congress will now have an opportunity to review the details, and my Administration Stands ready to provide extensive briefings on how this will move forward. As the American People and Congress Review the deal, it will be important to consider the alternative. Consider what happens in a World Without this deal. Without this deal, there is no scenario where the world joins us in sanctioning iran until it completely dismantles its Nuclear Program. Nothing we know about the iranian government suggests that it would suddenly capitulate under that kind of pressure, and he will not support an effort to permanently push iran into submission. We put this in place to get a diplomat of resolution, and that is what we have done. Without this deal, there would be no agreedupon limitations for the iranian Nuclear Program. Iran could produce, operate, and test more and more centrifuges. Iran could fuel a reactor capable of producing plutonium for a bomb, and we would not have any of the inspections that allow us to detect a covert Nuclear Weapons program. In other words, no deal means no lasting constraints on Irans Nuclear program. Such a scenario would make it more likely that other countries in the region would feel compelled to pursue their own Nuclear Programs. Threatening a Nuclear Arms Race in the most volatile region of the world. It would also present the United States with fewer options to prevent iran from obtaining a Nuclear Weapon. I have been president and commander in chief for over six years now. Time and again i have faced decisions about whether or not to use military force. It is the gravest decision that any president has to make. Many times in multiple countries, i have decided to use force. I will never hesitate to do so when it is in our National Security interest. I strongly believe that our National Security interest now depends upon preventing iran from obtaining a Nuclear Weapon which means that united diplomatic resolution, either i or a future u. S. President would face a decision about whether or not to allow iran to obtain a Nuclear Weapon or whether to use our military to stop it. Put simply, no deal means a greater chance of more war in the middle east. Moreover, we give nothing up by testing whether or not this problem can be solved peacefully. If in a worstcase scenario iran violates the deal, the same options that are available to me today would be available to any u. S. President in the future and i have no doubt that 10 years or 15 years from now, the person that holds this office would be in a far stronger position with iran further away from a weapon and with the inspections and transparency that allow us to monitor the iranian program. For this reason, i believe it would be irresponsible to walk away from this deal but on such a tough issue it is important that the American People and the representatives in congress get a full opportunity to review the deal. After all 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 country, iran that has been a sworn adversary of the United States for over 35 years, so i welcome a robust debate in congress on this issue, and i welcome scrutiny of the details of this agreement. But i will remind congress that you not make deals like this with your friends. We negotiated arms control agreements for the soviet union when the nation was committed to our destruction and those agreement ultimately made us safer. I am confident that this deal will meet the National Security interests of the United States and our allies, so i will veto any legislation that prevents the successful implementation of this deal. We do not have to accept an inevitable spiral into conflict and we certainly should not seek it. And precisely because the stakes are so high, this is not the time for politics or posturing. Tough talk from washington does not solve problems. Hardnosed diplomacy, leadership that has united the world of major powers offers a more effective way to verify that iran is not pursuing a Nuclear Weapon. Now that does not mean that this deal will resolve all of our differences with iran. We share the concerns expressed by many of our friends in the middle east, including israel and the gulf states about irans support for terrorism and its use of proxies to destabilize the region, but that is precisely why we are taking this step. Because an iran armed with a Nuclear Weapon would be far more destabilizing to the world. Meanwhile, we will maintain our own sanctions related to irans support for terrorism, its Ballistic Missile program, and its human rights violations. We will continue our unprecedented efforts to strengthen israels security efforts that go beyond what any American Administration has done before. And we will continue the work we have done it cap david, to elevate our partnership with the gulf states to strengthen their capabilities to counter threats from iran or terror groups like isil. However, i believe we must continue to test whether or not this region which has known so much suffering, so much bloodshed can move in a different direction. Time and again, i have made clear to the iranian people that we will always be open to engagement on the basis of mutual interests and mutual respect. Our differences are real and the difficult history between our nations cannot be ignored but it is possible to change. The path of violence and rigid ideology a Foreign Policy based on threats to attack your neighbors or eradicate israel that is a dead end, a different path one of tolerance, and peaceful resolution of conflict leads to more innovation into the global economy, more engagement with the International Community, and the ability of the iranian people to prosper and thrive. This deal offers an opportunity to move in a new direction. We should seize it. We have come a long way to reach this point. Decades of an iranian Nuclear Program, many years of sanctions, and many months of intense negotiation. Today a want to thank the members of congress from both parties who helped us put in place the sanctions that have proven so effective, as well of the other countries who joined us in that effort appeared i want to thank our new voting partners the united kingdom, france germany, russia, china, as well as the European Union for our unity in this effort, which showed that the world can do remarkable things when we share a vision of peacefully addressing complex. Conflicts. We showed what we can do when we do not split apart. Finally, i want to thank the american negotiating team. We had a team of experts working for several weeks straight on this, including our secretary of energy, and i want to particularly thank john kerry, our secretary of state, who began his service to this country more than four decades ago when off to war. He is now making this country safer through his commitment to strong principled american diplomacy. History shows that america must lead not just with our might but with our principles. It shows we are stronger not when we are alone but when we bring the world together. Todays announcement marks one more chapter in this pursuit of a safer and more helpful, more hopeful world. Thank you. Got lucky, god bless you and god bless the United States of america. Tom this morning, for y those of you on radio, we welcome all of yu worldwide as her president , Vice President biden behind him, we to get perspective of these important comments. Indira lakshmanan more than anyone it bloomberg knows of these events in vienna, austria. I was really taken by the stark statement, 2 3 of the way through the comments you do not make deals with your friends. How much of an enemy is iran to the American People . Indira look iran is one of only three countries left on the list of state sponsors of terrorism. Cuba has been taken off the list some of the by far it is one of our biggest adversaries are. The president as he said, you do not make deals like this with your friends, and he compared it to former arms negotiations with the soviet union, so the message he is trying to make clear is this agreement is not based on trust, it is based on verification and he believes that all the options that he has now, i. E. Military force, will still remain open to him if iran does not abide by its side of the deal. Brendan indira the president did say, and this phrase stuck out to me, that should iran failed to live up to the terms of the agreement, sanctions would snap back into place. Is it as easy as that . Is it an Automated Movement . Indira we have gone through the company of a text that we have today, and there are several mechanisms laid out for snap backs. One is and with regard one is in regard to the yuan, if they think iran is cheating on the deal, they can refuse to continue the suspension of sanctions. From the point of view of the u. S. And european sanctions yes, they can snap them back if they believe and have proof that iran is not complying. The question would be what other countries go along with our secondary sections at that point . It would depend on the World Community and whether they believe that iran was in fact cheating under the deal, if the u. S. Asserts that they are, so a lot of that will come down to you and monitors, the International Atomic Energy Agency, and what they say about irans compliance. None of these things and relief will come into at least until at least december 15 of iran has to comply with all the nuclear curves and answer questions about past military action. Tom he minces no words about it, the opposition and cross Party Opposition within congress will be substantial to this deal. Of course, the iranian leaders speaking right now across bloomberg television. Right now we go to Elliott Gotkine in tel aviv and Phil Mattingly in washington. Gregs note was especially strong in stride and this morning about opposition. Give us the layer or the nuance of opposition to what the president just said. Phil it is extensive, and i do not disagree with the note at all. What congress decides to do with this, and they will now have 60 days to review it once it is submitted to them by the white house, is they need to decide whether or not to approve or disapprove. If they disapprove, the president stated matteroffactly he will veto that, so what the president cares about and what his team is working on behind the scenes and tom, i have reports of them doing this for the last couple weeks with democrats all the they need to do is log in 14 democrat in the senate and 44 democrats in the house, and everybody else can oppose the deal, and it will still move forward. That is the mechanism they are working with right now. Brendan phil what ive heard in the speech is the president trying to own inherited. He said we are negotiating from strength. Is he trying to he said we are negotiating from strength. Is he trying to signal to congress that we got to get we want . Phil that is true. Look, you are dealing with republicans and democrats, and republicans in this administration, the sharp ideological differences about how they decided to go about this process. Much of what the president said today, republicans u. S. Soaring rhetoric that has no basis in reality. But again, the president s view is you have to be involved to be able to make change. Republicans disagree with that. The white house believes that their view is the right view and as you heard, and indira locked onto, they are viewing about future administrations, not just their own. Tom that is what happens when you do not have to be reelected. Phil mattingly in washington. Elliott gotkine is in tel aviv. Elliott described to us the relationship of the disagreement with the lobby that they have in washington. What is the dynamic of israel and their many relationships on capitol hill . Elliott i think it is clear that israel is very unhappy with what is going on, and they will unveil the big guns but they have got and reach out to all their allies in congress by reaching out. To try to persuade any congressman to do otherwise but as obama said, he will veto any attempt to do that, so i cannot foresee how Prime Minister netanyahu is going to manage to get this deal killed off. Tom Elliott Goggin in tel aviv. Lets go to the secretary of state indiana. Sec. Kerry in the United States, our pf 5 1 partners and iran have taken a step toward transparency and corporation. It is a step away from the specter of conflict and towards a possibility of peace. This moment has been a Long Time Coming and we have worked very hard to get here. A resolution to this type of challenge never comes easy not when the stakes are so high not when the issues are so technical and not when each decision affects global and Regional Security so directly. The fact is that the agreement that we have reached fully implemented will bring insight and accountability to Irans Nuclear program, not or a small number of years, but for the lifetime of that program. This is the good deal that we have sought. Believe me, had we been willing to settle for a lesser deal, we would have finished this negotiation a long time ago, but we were not. All of us, not just the United States but france, the united kingdom, germany, russia china, and the eu were determined to get this right. And so we have been patient, and our believe i believe our persistence has paid off. A few months ago in lausanne we joined iran in announcing a series of parameters to serve as the contours of a potential deal. Experts and commentators were in fact surprised by all that we had achieved at that point. After three more months of long days and late nights, i am pleased to tell you that we have stayed true to those contours and we have now finally carved in the details. Now, i want to be very clear the parameters that we announced in lausanne not only remain intact and form the backbone of the agreement that we reached today, but through the detail they have been amplified in ways that make this agreement even stronger. That includes the sizable reduction of irans stop i love enriched uranium and the number of centrifuges that it operates. It also guarantees that irans breakout time the time but it would take for iran to speed up its enrichment and produce enough material for just one Nuclear Weapon, that time will increase to at least one year for at least a period of at least 10 years. Contrary to the assertions of some, this agreement has no sunset. It does not terminate. It will be implemented in phases beginning within 90 days of the un Security Council endorsing the deal and some of the provisions are in place for 10 years, others for 15 years others for 25 years, and certain provisions including many of the transparency measures and prohibitions on nuclear work will stay in place permanently. But most importantly, this agreement addresses irans potential pathways to material for a bomb exactly as we said it would, with appropriate limitations and transparency in order to assure the world of the peaceful nature of Irans Nuclear program. Now, let me explain exactly how we will accomplish that goal. To start iran will not produce or acquire either highly enriched uranium or weapons grade plutonium for at least the next 15 years and iran declares a longer period of intent. Irans total stockpile of enriched uranium, which has kilograms of uf6 will be cap that just 300 kilograms for the next 15 years an essential component of expanding our breakout time. 2 3 of irans centrifuges will be removed from Nuclear Facilities along with the infrastructure that supports them, and once they are removed, the centrifuges will be and the infrastructure, by the way will be locked away and under aroundtheclock monitoring by the International Atomic Energy Agency. Uranian enrichment will be scaled down significantly. For the next 15 years, no uranium will be enriched beyond 3. 67 . To put that in context, this is a level that is appropriate for civilian Nuclear Power and research but well below anything that could be used possibly for a weapon. For the next 10 years, iran has agreed to only use its first generation centrifuges in order to enrich uranium. Iran has further agreed to disconnect nearly all of its advanced centrifuges and those that remain installed will be part of a constrained and closely monitored are in the program, and none r d program, and none will be used to produce enriched uranium. Iran has also agreed to stop producing uranium at its facility. It will not use or store fissile mrs. Material on that site. In set, it will be turned into a physics and Technology Research center. It will be used, for example, to produce isotopes for cancer treatment, and it will be subject to daily inspection. And it will have other nations working in unison with the iranians within that technology center. So when this deal is implemented, the two uranium paths iran has toured fissile material for a weapon will be closed off. The same is true for the plutonium path. We have agreed irans heavy water reactor at iraq will be rebuilt based on a final design of the United States and International Partners will approve so that it will only be used for peaceful purposes. And iran will not build a new heavy water or reprocessed fuel from its existing reactors for at least 15 years. But this agreement is not only about what happens to irans declared facilities the deal we have reached also gives us the greatest assurance that we have had that iran will not pursue a weapon covertly. Not only will inspectors be able to access irans declared facilities daily, but they will also have access to the entire supply chain that supports Irans Nuclear program, from start to finish from Uranium Mines to centrifuge manufacturing and operation. So what this means is in fact that to be able to have a covert path, iran would actually need for more than one covert facility it would need an entire covert supply chain in order to feed into that site. And to ensure that that does not happen without a knowledge under this deal inspectors will be able to gain access to any location the iaea in the majority of the p5 1 nations deems a seditious n nations d eem suspicious. Is clear that there have long been suspicious of Irans Nuclear programs are and that is one of the primary reasons that we are even here today. We and our partners have made clear throughout the negotiations that iran would need to satisfy the iaea on this as part of the final deal. With that in mind, iran and the iaea have already entered into an agreement on the process to address all of the iaeas outstanding questions within three months, and doing so is a fundamental requirement for sanctions relief that iran seeks. Director armando announced earlier this morning but that agreement has been signed. Now, our quarrel has never been with the irani and people. We realize how deeply the Nuclear Related sanctions have affected the lives of iranians. Thanks to the agreement reached today that will give change in return for the dramatic changes that iran has a update for its Nuclear Program, the International Community will be lifting the Nuclear Related sanctions on irans economy. The relief from sanctions will only start when tehran has met its key initial nuclear commitments. For it has removed the core from the iraq reactor when it has dismantled the centrifuges that it has agreed to dismantle, it has shipped out the enriched uranium that it is has agreed to ship out. When these and other commitments have been met, the sanctions will then again to be implemented in phases. The reason for that is very simple confidence is never built overnight. It has to be developed over time. This morning, for mr. Javon the foreign minister javonad zarif between iran and the International Community. That is why none of the current sanctions we have in place will be lifted until iran implements the commitment it has made, and some restrictions, including those related to arms and proliferation, will remain in place for some years to come. I want to underscore if iran fails in a material way to live up to these commitments, then the United States, the eu, and even the sanctions that initially brought i to the table can and will not write back tom secretary kerry speaking in vienna right now. Lets begin with Phil Mattingly in washington. Phil, the secretary and president setting of the battle in congress. A set of the dynamics of how the veto battle would go. Phil based on legislation that was passed earlier this year tom congress have the opportunity to approve or disapprove of this deal. They will have 60 days to review it. The excitation as they will disapprove because the republicans hold a majority in the senate and the house, and republicans unanimously are opposed to the way this deal has gone up to this went. However, they would need in the senate and the house 2 3 of each chamber to override the veto president obama has already pledged to make. That means president obama needs to ensure that 14 democrats in the senate stick with him on this and 44 House Democrats say with him on this. Tom, i think one of the key things we havent paying attention to the last couple of days, something secretary kerry was talking about, importing and export it, that will be summoned to keep an eye on when you look at that small targeting group of democrats. Tom i like that perspective. Phil mattingly in washington. From Potomac Research group Greg Valliere. Mr. Schumer and mr. Cardin please explain why they are the key for the president and secretary kerry. Greg i think both cardin and schumer could bring a lot of democrats with them when they decide. Key factor is what we hear from the ayatollahs. If their rhetoric is provocative, if they say we will not allow inspections, we do not agree with this then this deal is in real trouble. Even if the ayatollah sounds conciliatory, this deal still faces a very tough fight on capitol hill. Brendan greg, one thing the president stressed many times consider the alternative you do not like this deal. From the perceptive of the congress, what is the alternative . Greg no deal and putting more pressure on the iranians. You have to save the main argument for this, that it is better than nothing we know they are untrustworthy, we have got to do something i mean the basic arguments for this is pretty weak. Vonnie yeah, you say it is a solid agreement with an untrustworthy partner and that is better than nothing, what is wrong with that, though . It is some place to start at least, right, greg . Greg it is a start, and kerry has been articulate in talking about provisions that make sense that are very a lot of old very laudable but the majority of the members of congress to not trust iran, and the rhetoric and the actions from the ayatollahs in the last few months have been very provocative. Brendan the president was very clear that he would the till and of disapproval from both houses. How important is it for him what are the politics of having vetoed congress and them not being able to override it . Greg he needs a win just like he got a win on the trade bill. It is risky to bet against him he has had a pretty good bill. On this one, you will have overwhelming votes in both houses to disapprove. Whether he can get the votes to win a veto override fights that is all up in the air. Tom Greg Valliere, thank you so much, a mustread this morning. What a newsday. Vonnie we need to go back to jpmorgan within the drama of iran and what we see in greece they moved to their wednesday, and athens on the economic front, jpmorgan showed a resilient and vital quarter. Vonnie it was a beast. An adjustment earnings beat of four cents. Tom a lot of it from expense control as well. He has been more than patient this morning. Please stay around for a conversation with adam parker of Morgan Stanley on the equity markets your a with us worldwide. It is bloomberg surveillance. Tom after the president s speech, the secretary of state speaking in vienna. John kerry on his historic agreements, of course a multinational, six nation agreement with iran as well. As well as the drama in europe. Brendan, you and i have been looking at this since 3 00 a. M. This morning. I know me they dont story in greece. Brendan Olivia Sterns is an in affluence. Wolfgang schaeuble said it lies with greece during the Olivia Sterns is in athens. Will ensure blood said this lies with Wolfgang Schaeuble said it lies with greece. You are speaking with the economist, and i was shocked to hear him say that the 15 billion the 50 billion euros are just not there. Do we have the 50 billion euros or not . Mohamed olivia no, the economy minister is a friend of Alexis Tsipras. Ive not spoken to anyone who thinks that 50 billion euros is actually going to happen. Brendan, in 2011, george tried to do this, try to figure out how to sell airports seaports, they have only sold 3. 5 billion. Please tell me if you have any idea where they will find 50 billion euros worth of assets which is roughly 20 of the greek overall economy. He thinks the target is way off. He thinks it will be under 10 billion. I will tell you this about asset sales i am standing at a very fancy hotel. I have to american friends, one from a hedge fund and theyre both here because they were sent by their bosses to perceive that perhaps the Greek Economy has actually it now, and they are here essentially shopping for distressed assets. Brendan the concern has always been of the assets are not sold in a way that benefits the greek government the best but are sold in a fire sale at the lowest possible cost. As you have known, the only way to talk about any euro crisis is to look for the next deadline. Help us understand what is the width count right now for the conditions that europe has asked greece to pass . Olivia so the whip count i do not have an exact number, it looks like obviously he is going to lose his majority in government. You are seeing syriza splitting off. Kamenos the leader of the coalition party, the coalition greeks, he says he will not supported, but overall it is likely he will find the support from the opposition candidate. I want to leave you with news we did break with the economy minister on the banks. He told me to banks are not going to open until monday. Up until now, we thought there was a chance the ecb might weigh in on wednesday after the greek boat. He said no, he thinks he brings one not the banks will not open until monday. He thinks the Cabinet Reshuffle cabinet soon as today. Brendan ok, Olivia Sterns in athens, finds that the 50 billion euros is not there. Tom there has been a huge disbelief in the last 12 hours on greece. That story out of europe this morning. Secretary kerry continues to week in vienna as he and the president began the debate on their record. Stay with us. Tom good morning, everyone. Bloomberg surveillance worldwide. The secretary of state in vienna with his comments after the president of the United States. Kerry out on twitter agreement is a step away from the specter of conflict. That is from john kerry earlier this morning. Right now in this incredible news flow day, here is vonnie quinn without top headlines. Vonnie new york city is paying 5. 9 Million Dollars to settle the eric garner case. He was the suspect he died after being put in a toehold by a white police officer. His family is accepting the payment to settle their lawsuit. A grand jury decided not to indict the officers heard state and federal investigations are still open. A major deal in the air for boeing. Fedex is in talks to buy cargo jets. The planes would be priced at 5 billion, but fedex is likely to get a discount. And now it is turn on the world soccer stage. 11 tie in the gold cup in kansas city. That puts the u. S. Into the knockout round of the tournament. We will have more leverage open on thursday. Tom does the womens soccer buzz healthy men . Brendan i think this dynamic is going on on its own. Every time something shows up when we are looking at again hearing about again, and i inc. The think the underlying dynamic is there. Tom give the most patient man on bloomberg surveillance in the history of the show, adam parker of Morgan Stanley. Go to cash is the easy phrase. If youre not in the market you cannot be there. For selected gains, you cannot go to cash which is where mr. Parker comes in. You need to participate in the stock market, and within that is the blur of the news like iran like greece, and the rest of it. Adam parker, thank you so much as we do International Relations this morning. In your wonderful charts, you say things are not that. You look at the ratio of the money we are paying out every month to our net disposable income, and we are back to the nirvanas of the early 1980s. Adam i am very bullish. Lets bring it into the stock market for the last 15 for people to pay attention. Here is an easy case for u. S. Equities. The bond them the bottom earnings estimates are too low. You will start seeing that with the earning sector. They brought it down too much. The u. S. Economy is getting better. Consumer confidence construction spending, jobs and then three, sentiment is low. If this world right now does not make you realize you should pay a higher relative multiple for u. S. Equities in europe are other places tom Brendan Greeley on talking about republicans in iran, he knows tax receipts are 8. 3 . That is a general miss number to make the deficit that is a join orginormous number to make the deficit. Brendan you will like this transition, tom, there was a great piece in the terminal about eying the deficit and have it snap back in the s p 500. That strategy is not working out the way to have the last two years or three years because net backs are not as strong as they have been. Adam the markets have been more flat. At the end of the day, if you look at what is happening now, what is happening now is very unusual. Tom just pointed out. Usually, the analysts estimates are too high. They get to us areo optimistic, and the numbers have to be cut. Because of the dollar strengthening, the analysts got to bearish. Vonnie but that is hurting some industries, and we are seeing a stronger dollar, which is also hurting some industries, and when you talk about the underlying picture of u. S. Economic goals, are we looking at a better than 2. 5 growth rate . Adam no. Vonnie so then where is your argument for being bullish . Adam so you do not think 2. 5 is good. [laughter] i think against the backdrop of bottom investments being too low, that is too strong. Tom vonnies question that you push aside, i for that was rude of you, i have got to agree that that nurse call vetners call is good for markets. You are on speaking terms . A bloomberg breaksclusive. Parker and zetner on speaking terms. Adam i probably like her more than she likes me. I think slow retrenchment of the fed is good. I think that kind of growth is fine. I think what matters is how long will it last . If i can get 2. 5 for two more years, dothe length of the expansion matters. Tom how long will you do still away from the institution, adam parker, retail that counts, they have been watching bloomberg surveillance, worry about iran they are our enemy i think i heard from the president , worry about greece am a worry, worry yet your great thing is you are always in the market. How do we participate in equities given the cacophony of international moments . Adam one, equities look better than bonds. Two, the u. S. Is better than other regions in the world pier 3, there are opportunities within the u. S. Equity market. Our big bet there with financial and that is where the money flows. As the tom how does the ecig is betsy on banks . How enthusiastic is betsy on banks . Adam very. I think you have got a lot of runway ahead of us. People talk about greece all day long, 50 billion, look at the amount of money we are returning and shareholder returns with dividend plus by back this year. The dollar strengthening actually does not affect the bank, effect a lot of other sectors. When the 10year goes up, the banks outperformed by a lot, when the 10year goes down, they under performed by a little bit. Brendan politics does matter. You still prefer the u. S. What will happen to change that for you . Adam this is a big controversy but the currency is likely to hold, the quantitative easing is there markets are lower, so the history can expand. A superior set of companies with higher probability, so that commands higher profitability, so that commands more attention. Patience is not my greatest attribute, so i really tried. [laughter] tom the ambien worked. [laughter] adam thanks for having me guys. Vonnie i will be watching wells fargo earnings come out in less than five minutes. Tom adam parker, is there an underestimation on wells fargo . Costcutting works, doesnt it . Adam our view is there is upside across the Financial Sector in a number of names. Tom part of it is costcutting. Adam for sure. Vonnie all right, well we are looking for wells fargo to beat particularly on mortgage. Tom minus greece. Olivia sterns with that important interview, Alexis Tsipras economy. I go to brussels we do not hear from on singles, but this bridge issue is front and center. Brendan they came out with an agreement, and what they are waiting for his being able to pedro by drip the upcoming to pay drip by drip. Tom drip by drip is not going to work here. Brendan they really frame out with the next fight is going to be. The president said we are negotiating from strength. He said consider the alternative. Those are signs to congress. He said take a look at our unprecedented port for israel. Great valleyg valliere says tom former pelosi leading the charge in the house after the democrats. As great valley eight as Greg Valliere mentioned, senator cardin and senator schumer could be front and center. This goes back 35 years to 1979. Brendan he also looked at the sweep of history. He said we negotiated with the soviet union, he name checked jfk this speech was not about looking backwards what he had done, it was looking forward to the fight we will see on capitol hill. Tom john kerry out with a treat, speaking of the agreement in on a conflict. No question about it. A photo of the six nations, i think we should emphasize, this was six nations, not just the United States. Brendan the difficulty going forward, the only reason this works is because every agreed on sanctions. Tom thank you for joining us for the first two hours of surveillance. We will continue the discussion on bloomberg radio. Market makers next on bloomberg television, and wells fargo out with earnings in announcer live from bloomberg headquarters in new york. This is Market Makers, with Erik Schatzker and stephanie ruhle. Erik you are watching Market Makers on bloomberg television. I am eric schatzker. Matt i am matt miller in for stephanie ruhle. We will get wells fargo earning numbers as soon as they cross, we will break that. Erik the president got his deal on restricting nuclears Irans Nuclear program. Low congress sign on the dotted line . We will sort all of that out this morning. Matt we will. Bonnie vonnie quinn has the breaking numbers. Vonnie 103 in terms of earnings per share. That is right on range. Doing pretty well. 5. 7 billion in net income. We are just beating estimates by a little amount. 103 the estimate was 102. 2. 97