After as investors take a breather and equities but not cold. Josh following the moves on capitol hill for the following confirmation of janet yellen. We will get to josh in just a moment. First, the white house says it will veto new congressional legislation that would toughen sanctions against iran. Senators from both parties introduced the bill earlier today despite appeals run the white house and secretary of state john kerry. Bloomberg International Correspondent just landed in washington after traveling overseas with secretary kerry and she joins us on the phone. Good evening. Good evening. The white house has threatened to veto this new iran sanctions bill. Dumping the president has not done before. Why is this such a sensitive issue . This is a very big deal. His administration has worked with congress in the past to try to adapt previous sanctions legislation to the something that the administration could live with. To come out and threatened to veto the bill, remember this is a president who has only vetoed two pieces of legislation. Never a sanctions bill. This means that the administration is really worried that putting new sanctions on at a time when there is the delicate sixmonth preliminary deal in place in which the administration has promised not to put a new sanctions while a final accord on Irans Nuclear program is being negotiated, they are worried that new sanctions could derail the deal and really move the United States closer to having to exercise a military option. The senate action, does it complicate or does it undermine diplomatic efforts . It depends on who you side with. One quarter of the senators, 26 senators today cosponsored this legislation. Half of them are democrats. Says something about the ineffectiveness of the white houses outreach to the legislative body where it is supposed to convince them that sanctions were going to hurt their case. The argument made by the senate is that sanctions and economic pain through the loss of crude oil exports is what brought i ran to the table in the first place. Naturally, wouldnt the argument extend that if you put more sanctions on them, you could get a better deal . What the white house says is, no, that is not right. We brought them to the table, now we have to negotiate. It shows bad faith on our part if we slap on new sanctions on the verge of making some progress that would bring their Nuclear Program in check and make sure that it doesnt go bomb program. Ar the u. S. And the European Union already have sanctions in place that, irans access to the International Banking system. They have slashed its oil exports in half and severely restricted its trade with bans on shipping insurance and the like. What more could this legislation do . You make an excellent point. They have already sanctioned virtually every part of the iranian economy. The idea of this bill is that it would add new petroleum sanctions on. Essentially it would at this point, the Senate Sanctions that exist already force the country to import iranian oil there are only six of them left it forces them to reduce their imports. What this new bill would do is force them to eventually take it to zero. That would cost iran over 3 billion a month in lost exports. If sanctions brought iran to the negotiating table, why wouldnt more sanctions allow the International Community to get a better deal . Is, if youom line put yourself in the other iraniansosition, if have said that their bottom line is they are going to keep a Nuclear Energy program and they are going to continue domestic enrichment. The question is, can a deal begotten at allows them some level of safe enrichment that is constrained but doesnt allow a Nuclear Program . The whole idea of new sanctions at a time when they have finally agreed to negotiate is the argument the white house is making, that at this point it shows bad faith. We will see whether this bill can make it to the floor. At the same time, it has got strong support of a quarter of the senate. Other senators expressed opposition to it. It is not clear that harry reid will let it come to the floor next month. Thank you. The roof or ceiling of a london theater partially collapsed tonight. The packed audience of about 700 people were showered with plaster, wood and dust. More than 80 audience numbers were injured including at least seven seriously and several people were trapped and had to be rescued. That collapse happened at the Apollo Theater at 8 15 p. M. London time. That is 3 15 p. M. Here in new york. The collapse happened during a performance of the curious incident of the dog in the nighttime. Investigators are on the scene and they noted london was hit by an extremely heavy thunderstorm about an hour before that collapse. Lets show you have the equity markets finished this session. The s p 500 retreated from the record set after the Federal Reserve cut stimulus. Investors wait Economic Data that included higher jobless claims and lower home sales. The Broader Market s p was down one point at 1809. The Dow Jones Industrial average ,179. Points to 16 the nasdaq was down 12 points. Lets get you the story behind the numbers. Su keenan is in the newsroom with details. Good evening. The latest Economic Data did put pressure on some stocks today. We saw a big pressure on gold which closed at the lowest price in three years. Continuing declines in gold through the next year. Calls this profit taking in stocks after yesterdays emotional spike on the feds move. James grant notes the extensive nature of the fed stimulus thus far. Materializesl bank 80 billion or has been materializing 80 billion a month from thin air. That didnt exist until the fed tapped it into the computer screen. It will henceforth materialize 10 billion fewer a month. It will continue making new dollars at the rate of 70 billion dollars a month. That is unheard of. Magic. Among the big movers today, write a plunging after cutting its fullyear earnings outlook. Oracle rose to a 13 year high. A new Share Offering worth millions is offered by facebook. Target says a breach of security and credit card data could impact millions of users. The company says the breach occurred when a computer virus infected its pointofsale terminals. Shares fell more than two percent. The timing is a concern, only a couple of days before the holiday. We heard from nike after the bell. What is the story there . Nike beat the streak, the Worlds LargestSporting Goods company has been stepping up its sneaker strategy and has 11 new basketball shoes. We are seeing shares lower on disappointing sales themselves. Come out with a lot of new shoe offerings including three signature christmas additions. They beat the average analyst estimate by a penny. New products such as a 160 running shoe have been driving sales up until now. Su, thank you. Coming up, European Finance ministers agree to a Landmark Bank deal. What is next on the agenda . That story when bottom line continues in a moment. Welcome back. Lets turn to the fed. The central bank is taking the first steps in unwinding stimulus. Josh joins us now from washington for more on that. The latest on the janet yellen nomination. With the fed tapering, have we finally reached the end of the Stimulus Campaign . Are we getting back to normal . I think it is probably a little too soon to say we are getting back to normal. They are not buying 85 billion a month, but they are still buying 75 billion a month even as they taper throughout the course of this year lower and lower. We are still probably looking at maybe another 400 billion or 500 billion of purchases below he for they are done. They have their target Interest Rate near zero for that entire period. We are quite a long ways for even something that resembles normal. German bernanke, did he answer all the questions we have about fed policy . No. One of the day questions that he is leaving to his successor, janet yellen, is what the fed is going to do with that target Interest Rate. They have said they will hold it near zero until unemployment is at 6. 5 . Yesterday they said they will probably hold it there well past that point. They havent provided any definition. Do they mean years or months . It is going to be up to janet yellen to define what the actual raising of Interest Rates, what that might look like. What is her status in the senate . If confirmed, is she likely to change the course of policy . The senate is trying to get home for christmas. They all want to get back to their states and they are trying to get out this weekend. It is looking like her vote is likely to occur on saturday. She is likely to get confirmed. Only one democrat voted against her in the Senate Banking committee. There is no sign that any of the rest of the Democratic Caucus is opposed to her. He should get cleared pretty easily. Will she change policy probably not right away. Bernanke came out of the press conference yesterday and said that janet yellen fully supports this policy. She has been a key architect of the current policies. We are unlikely to see dramatic shifts when she comes into office. Josh joining us from washington, thank you so much. A Landmark Banking deal could mean closer ties for members of the European Union. Years of debilitating economic crises, finance ministers meeting in brussels have agreed on a new mechanism to handle ailing banks. Is it enough . John makin is an economist at the American Enterprise institute. He is a former consultant to the treasury department. He joins me from our washington bureau. Welcome back to bottom line. Good to be here. The goal of the new institution is to save or shut down troubled banks across the 17 nation euro zone. Will it help prevent another financial crisis . Struggle tos to define the relationship between governments and banks. It is the same problem they have had all along. They have one central bank and 17 finance ministries. Normally, finance ministries would handle some of the issues dealing with bank difficulties and their balance sheets. I think the underlying issue here all along has been that the German Government wants to design a system that doesnt mean that the German Government ends up holding the bag for dealing with problems in European Banks anywhere. They want a collective responsibility. The new mechanism, is it enough to spare sovereign governments from having to save failing banks . Will taxpayers now be spared that expense . Probably not entirely. Opaque but there is a pretty big hole in European Bank balance sheets. A big surge in inflation that would devalue some of their liabilities, i think the taxpayers of europe and probably do a larger extent, the taxpayers of germany are still going to be bearing some of these cost. The idea of disagreement is to spread the cost this agreement is to spread the cost. You mentioned that some see it as being opaque. One of the criticisms of the new mechanism is that it is just too cumbersome. Our too many people in institutions involved in the decisionmaking process . It certainly looks like that. It is almost an intrinsic problem here. You have got at least 17 nations directly involved with very different situations economically. They have a single central bank and the European Central banks policies arent appropriate for all of the countries. Some of them are still in dire straits whereas some prosper in some are prospering. Every separate country has their own interests to protect. When they try to come up with a collective deal to deal with to manage the problems the banks are probably going to face as they unwind some of their bed positions, it is very complicated. You have got way too many people involved. Withhave when you deal monetary issues, you have the European Central bank, a Single Institution with representatives from every place else. 17 finance ministers are much more difficult to corral. European Union Leaders also sought to tie nations to economic improvements. The plans discussed today improved included allowing countries that agree to implement improvements in areas such as education to receive loans or grants in return. Could this type of financial enticement undermine National Sovereignty . Extent. Ps to some i think the idea here is to say, if you undertake Structural Reforms, we are going to reward you. For thesets the terms Structural Reforms . If it is a collective European Group as it probably will be as opposed to nations, men countries will have to band somewhat to give up some of their sovereignty. What does it say that these types of plans are even being considered as part of an effort to press for reforms in the European Union . Again, the degree of freedom they have is often structural reform. In order to try to say, how are we going to get spain and greece and italy which are in considerably weaker condition than germany to solve their problems . One is to say, they have got to increase productivity and efficiency of their labor markets. Those are called Structural Reforms. In a way, they all have to kind adoptllective kind of collective standards that are higher than those in some of the weaker countries and may be lower than those in some of the stronger countries. Everybody has to compromise. We have about 30 seconds. On wednesday, the fed decided to begin winding down its monthly asset purchases. What impact do you think that might have on Global Markets . Quite limited. People say, the fed is actually tightening i think they are not really tightening very much. A very limited a fact because what the fed is doing is very tentative and very limited. There are offsetting it with other policy like lower Interest Rates. I think the unifying problem they face is Central Banks globally. The fed mentioned this and it is true in europe as well. It is the risk of disinflation turning into deflation. To the extent that that is a and the fed is committed to work against it, i think it provides support for other Central Banks. John makin joining us tonight from washington. It is always a pleasure to have you on the broadcast. Thanks for your time tonight. Good to be here, thanks. When bottom line continues, congress was able to reach a deal on the budget but another fiscal fight is on the horizon. We will talk debt ceiling when we return. Lets return to washington matters. We are waiting for word on when president obama will sign the budget bill into law. There is another battle looming and it may seem familiar. ,teve peter cook tells us dont put your countdown clock away just yet. Here comes the debt ceiling debate. Just a day after the congress completed the first bipartisan budget deal in years, the grim reality of what didnt make it into that agreement is rearing its ugly head. Jack lew sending congressional leaders a letter letting them know that the country will again face the risk of default if the debt ceiling is not raised by late february. Right now the debt ceiling is not being enforced. That suspension goes away on february 7. Tells new letter, lew lawmakers he could use extraordinary measures to create some breathing room but only until late february or early march of next year. He can create more caution because it is tax season and the government is sending out refunds. Lew says Congress Needs to act before then. He is reiterating, the president will not be negotiating. The American Public expects its leaders to put a end to a senior treasury official says this letter is going out now to give lawmakers as much time as possible to come up with a solution after the holidays area the clock is already taking. Republicans are gearing up for a fight, insisting they want something in return for debt ceiling increase. Here is Mitch Mcconnell earlier this week. I doubt if the house or the senate is willing to give the president a clean debt ceiling increase every time the president asks us to raise the debt ceiling. Early in 2014, expect washington to be back in crisis mode. Still ahead, new auto safety rankings out today. We will tell you about some new technology that is a major game changer in the auto industry. We will break down the numbers when bottom line on Bloomberg Television continues in just a moment. Welcome back to the second halfhour of bottom line. I am Mark Crumpton in new york. Thanks for staying with us. Lets check where the markets finished this session and we hit the bottom of the hour. Up. Stock indexes ended ready much where they started after a powerful surge on wednesday following the fed news that it would begin reducing its bond buying programs. Broader market s p 500 was down one point at 1809. The Dow Jones Industrial average falling excuse me, rising 11 points. The nasdaq composite index, it felt almost a third of a percent at 4058. Lets check some of the top stories were following at this hour.