Transcripts For CNBC Power Lunch 20150402

Its brought in the country by travelers and spread here. Most concerning, though the strains are resistant to antibuyieantiby october ticks. Between may and february 243 people got the illness with the outbreaks in california massachusetts, and pennsylvania. Nearly a quarter of cases were hospitalized, but no deaths reportered. This causes 500 cases of die ree kbra in the u. S. Every year. It goes away without treatment, but patients are prescribed antibyan buy october ticks, and its begin to those traveling internationally in case they develop issues outside the u. S. Study is needed to determine whether this is playing a role in the increased drug resistance. This is a Huge Public Health issue. President obama just last week announced a National Action plan to fight it including more than a billion dollars in the budget plan focused on the cause. Mandy . Thank you very much. Another breaking story now on the Iranian Nuclear talks despite long negotiations in switsland thats unclear if there is an official deal. However, dpoesht ernegotiates are set to issue a joint statement soon saying talks continue until the already agreed upon deadline of june 30th. Crude is down by 2. 4 at 48. 88 brent down by 8 . What do we know Michelle Carusocabrera . We learned they will announce some kind of agreement for a frame work that allows them to continue negotiating and hashing out specific details until june 30th. The reason we know two of the participants involved has sent out messages via twitter saying the following, and the Foreign Policy chief for the European Union tweeted out, the talks are done now meeting the press with zarif, the foreign minister of iran good news. Zarif himself tweeting Found Solutions ready to start drafts immediately. It appears theres an agreement. Remember, we were never going to get a final deal today. What they were working for over the last eight days after three days of a missed deadline was a frame work to continue discussions to hash out detail so were not sure what were going to get exactly today, but we know theres going to be a series of news kompbszs scheduled to begin any moment now in switzerland where they have been negotiating, and well watch developments as they happen and keep you up to date. It will be very interesting to see, michelle, if we see today what the details are in that frame work. What has been agreed upon and maybe what has not, and what they choose to keep out of the public eye, correct . Oh yeah absolutely. We want to know to how far have they got to the point where congress and the United States would be satisfied that iran would not be able to create a Nuclear Weapon quickly. Thats a big question. Are we going to have enough details about inspections, what they are willing to do with their current supply of feel et cetera, or have they been delayed . At the same time, we know the iranians desperately want an agreement that lifts all the sanctions immediately, and the United States and other nations were fighting that. Have the iranians agree its a peace meal removal of the sanctions if they meet certain criteria . We dont know any of that yet. All right, michelle thank you very much, and,my which he of course, and all of us are following the story as it evolves here quickly over the next hour or so. Meanwhile, a developing story out of africa. There has been a terrible terrorist attack at a university in kenya. Reports say at least 14 people were killed. That death toll sounds from other reports like it is likely to end up being much higher. Many more people taken hostages. Their fates unclear at this point, and officials at the u. S. Embassy in kenya say the Islamic Terrorist Group al shabob took credit for it and the attack lasted hours, and Security Forces killed apparently at least two of the attackers, and, of course, kenya has been a target of these kinds of attacks in the recent past. Okay, thank you very much. Lets look at the markets, shall we . So weve got crude moving to the down shied downside side, but markets holding heads above water now. Dow up 34 points s p up by five. Joining us now is head of global strategy for invest net, and john wilson ceo of asset management. Great to join us today. If an iranian deal results in more iranian oil supply in the Global Market and theres another leg lower in crude prices, whats it mean for the overall market . Well first of all, were not going to see that until, i think, these negotiations are going to go on for a couple months, and so it might not be june, and its not like you can just its not to be turned on. Looking down the line five, six, months and the market prices things in, or attempts to price it in but that does not mean they are right about that. Theres ample Global Supply with or without iran and just another 2 Million Barrels comets the narrative of a world flooded with supply, decreasing demand and its difficult to see when that changes, if at all in the next year or couple years. Okay. What about you, john, whats your read on this, and what overall crude what it means right now . Well, i agree with zac, i mean weve been in the view that the crude supply would last longer than people think. Iranian deal, if it comes, and looks to come eventually will not help relieve that and in the end, you know you are dealing with this sort of time problem which is in the near term, take the economic hit in the Oil Producing states and over the longer term say six, 12 months you get the bigger benefit to the consumer which is Something Like a thousand dollar a year and i think thats a big benefit in the second half. Lets move step back from whats happening with crude. Weve entered traditionally, a good month in the year for stocks, and its been so far choppy and low volume, low conviction. Its a shortened trading week. Do you think this april is going to be low conviction in general . You know i am im no way prepared to figure out what the month is going to be. I only know that one having a period of three months relatively calm, nonvolatile are the moments to use. You can think about, what does the world look like . Whats the shape like . How is it positioned . You dont do that in a huge spike in the vix or movement up where everyone chases stocks up. Take advantage look at it to take advantage of the moments. They are not bad things. In fact, having a pause in the markets the way weve had does suggest that theres more room to go up because theres its not like things are getting ahead of themselves, money coming out in march, and in all all, this makes me sanguine. Well get back to you, but, dom, a news alert. Thats right. Due to the holiday baker hughs rig counts are out. The headlines numbers, u. S. Total counts down 20 to 1,028. Among oil, rigs down 11 oil rigs minus 11 to 802, and gas rigs down 11 to 222, and miscellaneous up two to four. Falling 11 rigs from last week, and canadian rigs down 20 to 100, and oil is moving lower on the session so far. Both for brent and wti. More rigs offline, oil is extending some of the declines. Over to you. Thank you, though i do believe its not the lows of the day for crude, which was down by 2. 7 , but nonetheless, as you can see, we are sharply lower. John, i want to get back to something you said a moment ago about wage inflation. Its great minimum wages in chains like walmart, mcdonalds and tjx and target are raised. Fantastic. More money in peoples pocket meaning better consumer spending. Whats it mean for corporate Profit Margins . This is why parts struggle to get higher. Were in the upper band historically, not necessarily a problem to take earnings higher and or the multiple higher, but earnings are not higher, and six months, could be going lower, and if you want the multiple to go higher, people have to be certain about whats coming at them. Up certainty is rising, not falling. Uncertainty over the fed, the pace of decline in profits begin whats happened with the dollar and increasing uncertainty with europe. Volatilitys going to be higher than last year certainly more than people are used to and i think that does present opportunities, but you have to be careful about what you do here. Saying being careful, go for an individual stock collection because youre not convinced the overall market lifts up . Well, we use a lot of options with the equity positions, and you can use those, especially in the period where volatility is elevated to help bracket what returns look like mitigate the downside and lock in the upside. We are doing those structures right now, and, yes, you can find individual stocks that are secular and grow even in a more difficult market environment. You got three here. Sorry . Youve got three here. Which, by the way, just this morning, i think forecast lower revenue for the current quarter. Yeah. Micron, you know both micron are stock, be careful with those. We build a position in micron over the last month or so using short selling puts which allows us to get in at a lower price. You know its a cyclical business. The long term dynamics are great. Stock is cheap. The cash flow generation is great in micron and ultimately the stock can move through 40 over the next couple years. Okay. You dont do individual stock picks, zac, but do you have to add something . Just multiple expansions, it is true were in an opportunity dynamic period with a certain amount of uncertainty certain uncertainty, but if stocks are up 7 this year right, we got so used to 30 year in 2013 and 8 to 12 last year and in a world where theres no inflation, minimal National Economic growth on a global scale, maybe 2 , and bonds yield less than 2 at a sovereign level, even a modest gain for stocks without multiple expansion, is not only possible but companies are the only dynamic locust force of global growth. The dows around break even for the year so far today. Right. So far with the gains today, but higher or lower at the end of the year . Barring a Global Economic crisis stocks will continue to drift higher. Thank you very much to you for joining us. Only thing thats certain is uncertainty. For todays exclusive power play, go to powerlunch. Cnbc. Com. Thank you very much. The brash billionaire investor bites back telling us why shes going after the scc, which is going after her for fraud. New developments today, very interesting. Well tell you what they are after this. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage or major disaster, when you need us most, were there. State farm. Were a force of nature, too. The cfo announced shes leaving for personal reasons, stock up 20 since the company went public back in june 2014. Google could face antitrust charges from european regulators. The tech giant denies anticompetitive behavior in the Search Engine market there. And tobacco stocks Top Performing groups today on news of a vote from the fdc on a merger between Reynolds America and lore lard. Why shes suing the sec, accuseing her of fraud. She has doubts whether investors triggered the sec action. I did categorically say none of the investers raised these issues to me over the course of a decade. Theyve not pressed these arguments that the sec now makes over more than a decade. So it turns out tilton had divided regulators, public records show the sec still decided to go after her following a 32 vote. Thats rare for that to happen. Usually the sec likes to be unanimous. Joining me now is robert frank and aman and what stuck out here is the sec was divided down party lines so the two republican commissioners on the sec that voted, voted to not take any action against her, so can we summarize political background here . You can, but its growing facts around the case that make it increasingly complicated. This is an investigation that took over five years. They are looking at an accounting methodology shes been using for over 12 years, plus, none of her investors, she says, has ever complained to her, so then the issue is so who is the sec representing . Who do they bring on behalf of . The split vote, 32, enforcement action in Administrative Court where nay have a near perfect record during some periods thats when it starts to look like, well maybe theres a point here in her own lawsuit. What do you think about this . Do you think theres a political angle . I think its been known shes openly criticized the Obama Administration on variation points but shes also, i think, been a democratic donor in the past as well. What do we know about any political affiliation, how that plays into this case . Thats right. Whats fascinating about lynn shes not a particularly political person, swept into washington in the wake of the financial crisis. I remember it well. She had ideas about Financial Capital to turn around businesses. She hired a former mccain aid to open doors and introduce her to people here in washington, d. C. In those years, she was very active in pushing her sort of big ideas about how to get out of the financial cries is, and she was also active as a political donor, but she gave money between 2005 in 2010 to both parties, both Hillary Clinton and john mccains Political Action committee, got checks from lynn tilton but after 2010 she stopped dead. I cant find a single contribution from her after that point. She lost interest in washington and moved on with her life to the rest of her business. Not somebody who made a big impression in washington. She came in quickly and came out. Whats interesting about the timing here, 2010 is about when this investigation started, and its also the year that lynn wrote an oped critical of the Obama Administration. Its also the same period where she had a public disagreement with valerie in a public panel. If youre a political conspiracy theorist you say the same year this investigation started is the year she was critical of the Obama Administration. Thats what some say. Yeah, look, i mean, theres a lot of Business People who are critical of her. Shes the Obama Administrations point person in dealing with business folk, and i talked to a number of folks who do not get along with her or think shes the appropriate person to be in the role but whats interesting about lynn tilton is she came in washington with the big policy ideas. She wanted more finance, more capital going to turn around small businesses, particularly in manufacturing. That seems to have been something that captured her imagination, but briefly, for a couple years and then she was going. The final note the important thing here is the Administrative Court issue, which is her bone of contention. She said, look, if the sec has a case, bring it to the federal court. A study shows in a oneyear period when sec bring actions, they win in federal court only 60 of the time but they had a perfect record in the add minutead min straitive court where they hire judges for the Administrative Court. Surprise. A perfect report in the court in which they hire the judge. They use these processes more and more. I wonder you know we see more and more lawsuits because the sec is using its own court more. Were seeing more pushback, not just lynn but other people suing, saying look this is not right. Yes. I would say just generally, part of this is personal and stylistic. People who work with her describe her as flamboyant combative, and brash. Those are things that do not necessarily make a good fit in washington where the tone is button down. The sense was she was not a good fit in washington. That might be part of why she left and abandoned efforts. Button down is not the adjective. All right very interesting story, and i have a feeling theres a lot more to come on this as well. Over to you. Thanks. They say life begins at 040. Microsoft turns 40 whats next . Plus, crime and punishment. Andrea day on the case. Sinking the most famous shot in uconn player but now the conman is fighting for another shot. Thats coming up right here on power lunch. And a gentle wavelike motion. Ahhh ahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just one day. Ahh so he had your back . Yep. In just one day, we approve and pay. One day pay, only from aflac. [duck snoring] you cant predict the market. But at t. Rowe price weve helped guide our clients through good times and bad. Our experienced investment professionals are one reason over 85 of our mutual funds beat their 10year lipper averages. So in a variety of markets we can help you feel confident. Request a prospectus or summary prospectus with Investment Information risks, fees and expenses to read and consider carefully before investing. Call us or your advisor. T. Rowe price. Invest with confidence. Dont just visit new york. Visit tripadvisor new york. With millions of reviews and the best hotel prices. Book your next trip at tripadvisor. Com today. [ male announcer ] legalzoom has helped start over 1 million businesses. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. Welcome back to cnbc, im Michelle Carusocabrera at the breaking news desk. We have seen leaked details of a frame work for some kind of an agreement we expect to be announced about the Iranian Nuclear discussions. Thats the live picture were showing you from switzerland where we are awaiting a News Conference. In the meantime reuters is reporting that the six powers involved and iran agreed that over twothirds of irans current enrichment capacity will be suspended and monitored for ten years. Iran and the six powers agree that most of irans enriched ewe rainian stocks are diluted or shipped abroad under a comprehensive deal. Thats according to roititers. Nay are contingent on final agreements between iran and the six powers by june 30th. Remember, what we are hearing today is simply about some outline or frame work about how they are to proceed forward to ultimately get to the point june 30th where the west is satisfied that iran does not have enough capacity to make a nuclear bomb quickly at that point. Thats what we are waiting to hear guys. Well hear several press conferences this afternoon and reuters leaked out some details. We heard from the president of iran as well who tweeted out solutions on key parameters of Iran Nuclear Case reached, drafts to start immediately to fennish by june 30th. Back to you. Thank you for the breaking news headlines, Michelle Carusocabrera. Back after this quick break on power lunch. Hello, everyone heres your cnbc news update for this hour. Western sources say six world powers and iran agreed that over twothirds irans current enrichment capacity will be suspended and monitored for ten years. Irans enriched uranium stocks will be diluted or shipped abroad. All this predicated on a final deal reached by june 30th. Waiting for statements momentarily as you look at that live shot. House Speaker John Boehner met with israels defense minister to discuss an Israeli Air Defense system the u. S. Is helping finance. The two countries said the system met all objectives in a live interjection test. 17 People Killed after a Suicide Attack in eastern afghanistan. The suicide bomber blew himself up in the middle of a demonstration against corruption. At least 50 others were injured. There was no immediate claim of responsibility. German Scientists Say first test results of a canadian developed ebola vaccine though its effective. The phase one trials conducted in switzerland and two african nations. The patent for the vaccine is held by merck and company. That is your cnbc news update this hour. Back to you. Thank you very much sue. Lets look at oil prices closing right now. Gold, by the way, year to date up 1 . Today, its moving down by 7 at 1200 even. Lets look at the other metals like silver palladium, plat yum, moving down. Copper as well is on the back foot. Thank you very much. Been 25 years since tate george, the basketball player sank the shot during march madness. He moved on to a multimillion dollar ponzy scheme. Where is he now . Heres andrea day. Hes hoping another shot from behind bars pulls him out of trouble, but right now, it does not look too good for tate george. Listen to this. All things tate. Lets go watch. I had already been swindled. I had already been ponzied. When she got this in the mail from tate george, sent to her after george was busted in a multimillion dollar scheme. She does not want to be identified. He was looking to drag me into another scheme. More about her later, but first being an nba legend is what dreams are made of. This is tate george. This is jersey jersey. In the house. This is how we do. A former husky who hit the most famous buzzerbeating shots in uconn history. That shot catapulted tate to the nba. Clearly, at a time george loves the camera. Look at this video he made and posted on youtube. But that was then. People trusted you, tate to invest their money. The fast talker clamming up on the way into court. Heres a question, you claimed you had 500 million under management. Was that true . He was on trial in 2013 charged with swindling investors in a 2 million scheme. The prosecutors say he was running under the guys of a real estate firm. His list of victims including a former husky, former nbas knight. Nod got. Were talking about millions of dollars, tate. We were in court for the facetoface. The detroit piston charlie, testifying against tate. Rather than investing the cash, prosecutors say tate george blew it all on himself, his kids and even to produce this reality show pilot. Sometimes pleasure is business. There was no buzzer beater in court. George was convicted on all counts of wire fraud and has been locked up ever since. His sentencing delayed and delayed again with george trying a series of shots from behind bars. Dismissing his legal team to represent himself. The latest move . A letter to a judge pleading to be set free. That request just denied. We dont get along at all. And back to the woman who says that after george conned her out of her money, he came back looking for more. I felt like i was being violated again. Tate george has maintained innocence and faces 20 years behind bars but theres been no date set for his sentencing. Back to you. Bond market now where Rick Santelli is tackracking the action. Its a fascinating day. The twoday chart, yesterday, we closed under 1. 86 lowest yield close since early february. Today, yes, we had data you can assume is better than not, especially the drop in claims but a lot, as you see on the right side of the two day chart of the selling pushing rates up that started into the time zone and at 8 30 eastern, turbo thrusters. A lot goes back to the Foreign Exchange side with all markets when you try to explain movement, 24hour of the chart, euro versus dollar explosive, a very big move in favor of the euro, not of the dollar today, but it really cements the point home that 1. 10 on top as we breakthrough 1. 09 maybe the euros are in range for now, and maybe we need more information on the european economy and ecb ease qe operations for the future. Back to you. If i helped to level the Playing Field for women and minorities in venture capital, then the battle was worth it. That is ellen poa, lost her gender Discrimination Suit against her employer, but the topic of sexism and discrimination and perceived inequities between men and women there is a controversial topic. The cofounders of aspect ventures, one of the few female Led Venture Capital Firm and together they have 30 years combined leadership in the Silicon Valley and d. C. World. Welcome back. Do you either view ellens loss as a victory for gender equality in Silicon Valley . First of all, thank you very much for having us on. I think that we have really generated an interesting and important dialogue and i think the case opened up the opportunity for both men and women to talk a little bit about what its like to have a diverse culture and build a culture that creates an environment for men and women to be successful. And when that works and what that doesnt, unconscious bias is associated with that. Even though the jury decided against her, did the in the course of this case and did she raise the kinds of gender discrimination or inequities that you, yourself have seen in Silicon Valley . In short, does Silicon Valley have an equality problem . Tyler, its as jennifer said which it did raise the issue of unconscious bias and i think in thinking of my own experience, jennifers, and all the women we know in Silicon Valley as investors or entrepreneurs, we had those sort of little inequities, death by a thousand cuts, you know the person who will not speak to you and addresses all their questions and comments to your male colleagues in the room or being asked to take notes or fetch coffee, and those will all seem small. What shes done, which is actually a topic that many other Tech Companies took leadership on is understanding the importance and the impact of this culture and this unconscious bias in taking a proactive approach to a culture thats more inclusive to get the best of your work force, the most diverse work force, which time and time again, data shows leads to better economic outcomes for everyone. How do we achieve that jennifer . Whats steps taken to close that socalled gender gap . Well, i think that you know the world of the all boys network coming out of you know companies spinning out of fair child semiconductor are gone. Today we have Companies Like twitter and facebook and we have companies that are focused on products that appeal to a Diverse Customer and customer base. We have to address that in our work forces within the environments we create. I think the opportunity today is really to think and to focus on those moments and be where we have unconscious bias, whether thats interrupting someone in a meeting or making sure that the person feels comfortable and safe to be able to voice diverse different point of view. Is it particularly bad in a tech culture or Silicon Valley . Doesnt that happen everywhere . I mean, is it particularly noticeable where you are . You know i think jennifer and i both had the experience of working in sort of large east coast firms back actually when we first met 25 years ago and being in the valley now for several decades. I agree with you. I think this is a pervasive Business Culture issue that again, i think as businesses are waking up to the fact that you know, their products are increasingly used as jennifer mentioned, mobile products in particular as well as social media, heavily skewed towards women as your key demographic group. People want to be more inclusive because its all about building a bigger and Better Business so i think thats what drives it. I think the simplest change that we can all make is being aware of this and from a culture perspective, you know oftentimes, and this is very true and very much the nature of Silicon Valley the fastest way to make culture change when you see something thats not met perfectly in the marketplace is to go out and start your own company or your own firm which is what we did when we founded aspect a year ago. Im curious, are you familiar with her . Has she reached out to you . If she did, would you like to sit down and talk to her . You know i think we both have probably been in conferences or meetings with e en, but we do not know her directly or personally. We know several of the other partners involved in this and we have been weaveve worked with them and look forward to having conversations or dialogue and i will say this personally as jennifer started out, i welcome the opportunity to speak to ellen because she raised the dialogue and thats a wonderful thing as i think people think about moving forward. Moving away from the topic of gender for a moment you have a crisis of water in california. You have a crisis of australia and many other parts of the country. Have you seen any advancement in terms of startups or Technological Developments to solve the water crisis . Have you been interested in investing in the area . So aspect ventures invests in mobility broadly speaking. What we are seeing today is the opportunity with mobile devices and with wire lessen sores to be able to track data around water usage in the home as well as the field for the Farming Community and track and monitor that to a point where we can actually control waste and a lot of the low hanging fruit around waste and conservation, so we are seeing interesting technologies in that area and i think that well continue to be able to use that technology to you know manage our water more effectively. Thats absolutely crucial for the future of the planet. Thank you so much aspect ventures. Thank you for having us. A companys aggressive move in real estate what segment of the market they are betting on and that is in the second hour of power, stay with us. Lets not go to break as planned because here in switzerland are the group of 5 plus 1, all apparently going to talk about the frame work for a possible deal with iran to arrest its development of a Nuclear Weapon. This, we dont know whether this would be a question and answer session or a straight statement session. Michelle carusocabrera will join us now and can probably identify some of the parties including, i believe, the foreign minister of iran who you see there, the gentleman with the beard. Absolutely correct. To help us out, they are standing in front of their respective flags. We expect to hear from the only woman on the stage standing in front of the eu flag Foreign Policy chief, theres john kerry, and zarif in front of the iranian flag. We expect to hear from those two individuals, shell read in english, hell read the same statement in forsi. Hell be speaking we think some kind of question and answer session, and then we eventually hear from u. S. Secretary of state, john kerry, and also later on in the afternoon, president obama as well who is supposed to go to an event, but has not left the white house. Lets here they come to the stage. Lets take a listen to the podium. Well tyler, its not perfectly coordinated, as you can see. [ laughter ] thats zarif on the right, talks perfect english having studied in the United States for his degrees. Im going now to read the joint statement that we have agreed on with foreign minister zarif and all the others that have been negotiating so far in these days. We the European Union, representative, and foreign minister of the Islamic Republic of iran together with the Foreign Ministers. E 3 plus 3, china, france germany, Russian Federation united kingdom, and the United States met from 26 march to 2 april 2015 in switzerland. As agreed in november 2013 we gather here to find solutions towards reaching a comprehensive resolution that will ensure the exclusionvely peaceful nature of the Iranian Nuclear program and the comprehensive lifting of all sanctions. Today, we have taken a decisive step. We have reached solutions on key parameters of a joint comprehensive plan of action. The political determination, the good will, and hard work of all parties made it possible. Let us thank all delegations for tireless delegation. This is a crucial decision laying agreed bays is for the final text of the joint comprehensive plan of action. We can now restart drafting the text of the joint comprehensive plan of action guided by the solutions developed in these days. As iran pushes a peaceful Nuclear Program, irans enrichment capacity enrichment level and stockpile will be limited for specific durations, and there will be no other enrichment facilities. Irans research and development on sentcentrifuges would be carried out on a scope and schedule mutually agreed. It would be converted into a nuclear, physics, and Technology Center. International corroboration will be encouraged in agreed areas of research. There will be there are not be any assigned material. An International Joint venture assist iran in redesigning and rebuilding a modernized heavy Water Research reactor that will not produce weapon grade plutonium. There will be no reprocessing and others will be exported. Agreed to monitor provisions including implementation of the modified code 3. 1 and provisional application of the protocol. The International Energy agency will be permitted of the use of modern technology and have axis through agreed procedures to clarify past and present issues. Iran will take part in International Cooperation in the field of civilian Nuclear Energy which can include supply of power and research reactors. Another important area of cooperation will be in the field of Nuclear Safety and security. European union will terminate implementation of all nuclearrelated, economic, and financial sanctions, and the United States will seize the application of all nuclearrelated financial sanctions. Simultaneously with the aie, verified implementation by iran of key nuclear commitments. A new u. N. Security counsel resolution will endorse the jcpl terminate all previous related nuclearrelated resolutions and incorporate certain measures for mutually agreed period of time. We will now work to write the text of a joint comprehensive plan of action including its Technical Details in the coming weeks and months at the political and experts level. We are committed to complete our efforts by june 30th. We would like to thank the swiss government for its generous support in hosting this negotiations. Let me personally and on behalf of everybody also, thank you, all, journalists, the media from around the world for having followed our work and somehow also having worked with us over this difficult, but intense and positive week. Thank you. Good evening to all of you. Let me also join mrs. Mogherini in thanking the swiss government and distinguished members of the press and media for their actually trying to work with us over the last several weeks and trying to help us in getting the world to know what was going on. As our tradition has been i would read the same statement that she just read out to you in english in farsi. Its the same statement. You dont need interpretation. [ speaking in Foreign Language ] my which he mymy mymy mymy which he let me interrupt here as he speaks. The frame work for agreement will attempt to include a peaceful nature of Irans Nuclear development and that they reached key agreements on compliance with a regime of inspections, i presume and will now move basically to the text drafting stage, enrichment limited, development of centrifuges will be subject to develop limit, and that used in the current Iranian Nuclear program will be converted to a physics and Technology Center where theres no fissile technology. Its very complicated, and thats where they lost me. Yeah. What they did, essentially, was go through some of the key technical issues we have been following when it comes to the numbers of of centrifuges. Theres not a lot of specifics in, but areas we know in iran what happens with them all of that designed to be an exclusively peaceful Nuclear Program. At the same time, what we have not gotten clarity about is what iran gets in exchange for that is a lifting of the sanctions. How are they going to lift the sanctions . There was not clarity about that. Is it all at once on june 30th . They come to some agreement, or will it be step by step through the processes of inspections, et cetera, so i assume thats whats going ton be hammered out through the june 30th time line if they make it. Because we have seen three missed deadlines in the last years of negotiations, three days since the last one as well. A lot of details that we still dont know about, but certainly step by step and president obama. Tyler, if i could weigh in as well, the majority of the sanctions against iran have been put in place by executive order, so the president , by himself, can do a lot to ease the situation. Ultimately, though, many of them are still controlled by congress. Theres waivers built in where he can put a waiver in place for a temporary amount of time saying its in the National Interest to do so, but, eventually, it has to be congress to take away the final one. These sanctions go back a long time, 35 years worth. The first one, jimmy carter 1979, as a result of the iranian revolution that led to the taking of 52 american hostages. Thats when he seized all the iranian assets in the United States that are worth about 12 billion, i believe, thats in todays terms, updated for inflation. Looks like the Iranian Foreign minister concluded remarks to some applause as you see there, and lets see who speaks next. We expect john kerry to step forward shortly. I dont know whether hes next. Well take a quick break and come back to resume coverage of the talks in a moment. Before i had the shooting, burning, pinsandneedles of diabetic nerve pain, these feet. Served my country. Carried the weight of a family. And walked a daughter down the aisle. But i couldnt bear my diabetic nerve pain any longer. So i talked to my doctor and he prescribed lyrica. Nerve damage from diabetes causes diabetic nerve pain. Lyrica is fdaapproved to treat this pain. Lyrica may cause serious allergic reactions or suicidal thoughts or actions. Tell your doctor right away if you have these, new, or worsening depression or unusual changes in mood or behavior. Or swelling, trouble breathing rash, hives, blisters, muscle pain with fever, tired feeling, or blurry vision. 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Were still monitoring the situation in switzerland where in the last few minutes, the Foreign Ministers of the countries that have been negotiating with iran over the nuclear question there along with the Iranian Foreign minister have met the press, given a statement regarding what is going to happen a frame work for a deal that will now be put down into real draft language and, apparently theyll work towards a june 30th deadline for that. The president is expected to speak in about a quarter hours time. We may hear from john kerry, the u. S. Secretary of state, who has been the point person for the United States in switzerland as the negotiations move forward. And michelle is with us mandy, melissa lee with us, and john harwood in washington. Do we have any initial reaction from any of the folks on capitol hill . I realize they are on recess. We just showed an image of Speaker Boehner in israel which would probably be unhappy to hear that this situation moved forward even as far as it is. Tyler, the image of john boehner in image is all reaction you need. Remember john boehner invited israeli Prime Minister Benjamin Netanyahu to talk before congress to trash the prospect of the deal and dissuade congress from going along with it, and now the president in a few minutes from the rose garden is going to begin a sales job to make the case that, yes, we have achieved something historic thats going to make a difference that will actually prevent in a better way than either military action or the status quo will iran from having breakout capacity to make a Nuclear Weapon and, you know the questions going to be all the details of it the verification of it and what sort of inspections are allowed, what sort of sanctions relief is required for iran to follow through, all of those things. We have not had fully laid out for us and youre going to you can bet theres going to be tremendous pushbacks from republicans in congress and some democrats as well. Therefore, how much skepticism is out there that a deal will not happen . We have until june 30th for the deadline to take place, and many deadlines have passed without agreement in the past. Do you think theres skepticism this falls through . Well i think theres going to be skepticism within congress for sure but i think the Administration Made very clear they absolutely wanted to get something done, and thats why they worked so hard for this even as they seem to leak they were walking away maybe that was to get the iranians to come to the table again to agree to certain things. They want something done. We have to wait for the details as pointed out, to what degree is Congress Going to be convinced that iran no longer has the capacity to make a nuclear bomb quickly . We dont know that yet, and we may not know that until june 30th when we know what the inspection levels are or how often they are, and how deep they are and frequent et cetera and to what degree they say twothirds of the capacity whats that mean actually when it comes to the number of centrifuges . All things that have been negotiated by Nuclear Scientists who understand this far better than likely the foreign minister sitting at the table, for example. Yes. When one says twothirds of the capacity, my immediate thought was, what the heck happens to the other third, and is that is that enough from which Nuclear Weapons could be built, i dont know. I suspect its somewhere between, you know the west argued they want Research Scale capability, iran wanted industrial scale capability. Itll be in between the two. Tyler . Go ahead, then melissa. I wanted to say in terms of selling technical declaytails, youll see the Energy Secretary who has been john kerrys wingman at the talk and hes well respected on both sides of the aisle, m. I. T. Professor, and will make the case that the Technical Details moving towards will be sufficient to achieve the goal that michelle mentioned. John harwood and Michelle Carusocabrera thank you for joining us and youll continue to follow the story. Big breaking news story, but now over to melissa lee and ty for the second hour of power lunch. Thank you very much. Go ahead. Tracking the story, of course, and where we feel the most impact here as you pointed out in the oil mark. 20 minutes ago, we hit session lows on brent. Analysts believe iran has 30 Million Barrels of crude stored in super tankers offshore. That could release potentially this extra oil. Oil that we do not need in the Global Markets to support oil prices, be could be released if sanctions are lifted and that could pressure brent so we are seeing brent prices down in the close here also within the oil stocks, were seeing a lot of pressure in the refiners space. Look at those fairing well in the route in oil. Look at tesoro valero. They benefitted in the spread. With the release of brent, spreads could be threatened. We are seeing sell off here in the particular space, although oil equities overall are holding up in the meantime. We are tracking the story as we are getting more developments. Tyler . All right, thank you very much. Why dont we look at the broader markets right now as we await the president s statement here. We are 13 minutes away from that scheduled for 2 15 today. The president its i believe, a rose garden statement. Dont expect too many questions to be asked, but there you see the dow transports moving a little bit lower. Maybe paradoxically if oil is moving lower as it has been. Often, you expect to see transports move up because fuel is such a constituent in the cost structures of airlines truckers trains and so forth. The industrials are bouncing back a little bit today. Up about a third of a point, 56 points at 17757, and nasdaq at 4887, and s p up six points. Michelle . We want to update you on what we heard from zarif, the foreign minister of iran doing a News Conference right now partially in english and partially in far see saying a kauplecouple things, and they will continue to enrich no facilities will close, and theyll have a sent fuse in a facility. This has been important to iran to tell the world they felt they had the right to enrich uranium. Up until these discussions began in 2013 the u. S. s position was iran should have zero nuclear capability, no enriching facilities, and they have always said they had to. The u. S. Had implicitly lyly agreed to that, never saying it out loud explicitly but they are seeing explicitly, we are going to continue enriching uranium. Thats considered very important to them, and its not a surprise. Its one of the lead statements hes made as he started to speak to reporters. All right, michelle i want to go back to john harwood. One of the roadblocks to this in congress . Roadblocks a strong opposition among republicans and some democrats. The democratic opposition was led for a while by bob me then does, and he was indicted yesterday, the senator from new jersey, but the democrat from maryland will replace him as the ranks member on the Foreign Affairs committee is someone who also is pretty hawkish on the issue of iran and so is congress willing to say, yes, we will hold off ever sanctions, further sanctions, and agree to the konsconcept of lifting sanctions by the terms of this frame work agreement, and let you keep negotiating that until june 30th . Thats very much an open question, and as we were talking about a few minutes before the fact that john boehner visited israel to spend time with Benjamin Netanyahu who addressed the congress in opposition to the deal tells you something about the strength of the opposition. To the right of the screen theres a live picture of the white house, awaiting president obama to deliver some remarks at 2 15 eastern time. As soon as he walks out, well bring them to you. In the meantime despite the roadblocks potentially in Congress Jackie sanctions trading like they would be lifting. What could the consequences be . Whats a sense of the traders mind sets going into a long weekend . Great questions, melissa. First of all, traders square off before a long weekend. Theres no floor trading or electronic trading tomorrow. The first chance the markets have to react to this is sunday night after the close today. Having said that the position has been bearish all day because they are looking at it from two perspectives. Number one, they say progress made is a positive thing, even though the deadlines been extended we could see potential to see a deal here. What that does is bring iranian oil back online that floods the market that is already full of oil at this point. To the flip side of that some are saying even if we dont get a deal theres 20 Million Barrels of crude being stored overseas by iran iranian crude, floating storage and china has appetite for that oil, so either way, youre going to see more oil come on to the market place. Its one of the situations where deal or no deal it does not matter. Having said that there is some traders out there that are saying theres no way that oil can go lower from here. We are already are starting to see the makings of the production cuts here in the United States. You know, it was a 36,000 barrel drop an output drop last year very small, but you have to start somewhere. Very diverse opinions here for the moment. The bearish sentiment continues. If traders get this wrong and we bounce back over 50 that key technical level, a lot of people could get hurt. Back to you, melissa. Ill pick it up thank you very much. Well take a quick break awaiting president obamas statement from the rose garden on iran and the apparent agreement on a frame work to keep working towards and drafting a deal regarding its Nuclear Program. There you see the s p 500 up about a third of 1 . Well be right back. Youre looking at a live shot now of the white house, the rose garden area there where the president in about five minutes or there abouts will deliver a statement regarding the framework for a deal to curb irans Nuclear Program so its not able to develop Nuclear Weapons. At least, thats the intent of this agreement. Michelle carusocabrera has Additional Details that are coming out of swits land. Michelle . State department put out a fact sheet about the deal. Heres hieg likes. Its detailed when it comes to Nuclear Technology but they say iran will go from having 19,000 centrifuges installed today to 6104 installed under a future accord. Remember, this is all going to be done by june 30th. The sheet says iran agreed not to enrich uranium over 3. 67 for at least 15 years. When it comes back to this centrifuges, the sent fungs that remain in working order will be the first generation centrifuges centrifuges, and like any technology, they get better and improve over time. They keep the Old Technology rather than new technology with more capacity. Well read through this. Theres a lot of detail related to reactors and reprocesses, et cetera. Well read through sanctions as well. Over to you. All right, thank you very much michelle. We are a few minutes away from the president. In the meantime more on oil market and reaction with jason and chief Investment Officer of broad leaf partners. Doug, whats your reaction to the news impacting the markets and oil markets which are seeing a reaction today. I would say its an overall a net positive you know it should bring more oil into the markets. It opens up markets, takes away sanctions, and we can buy and sell things potentially to the iranians, which we have not been able to do for some 30plus years. I would not be bearish absent you know nuclear war, its kind of like roast stocks in recessions, you know absent recession, Growth Stocks do well. Thats the same thing with bringing down these barriers. Jason you covered the transports, and already weve seen a number of stocks within your coverage universe taken to the wood shed because of Lower Energy Prices especially the rails, the Trucking Industry and if this does happen if sanctions are, in fact lifted and we have a pressure on the oil markets, whats the an anticipated impact for you . For most its going to be a little negative for the rails, and lose between railroad pricing and truckload pricing, and also the way it works for the railroads, its a 40 day lag on fuel surcharges so you lose a little as fuel goes down. Some railroads tied fuel surcharges to wti rather than the highway diesel prices. When you break down trucking thats positive because those guys have 15 of their fuel costs they can never recover. Thats a positive for those guys. In the less than truckload market, that hurts them. Historically, they made money on the fuel surcharges. Doug back to you. It sounds like you think that Lower Oil Prices overall are good for the marketings. Is that because its good for the consumer . Will we see that play out . Yes. I think were in a long term more structural bear market for commodities, and i think theres so many factors, not just supply, but i think that the demand from industrializing emerging markets nations is shifting and probably going to be much less than it was in the past so i think overall it sets up a Good Environment for financial stocks. Are you constructive on the markets overall, doug . Yes, id be a buyer here. My biggest concern is what the fed might do or not do come june. Or potentially september. I think overall, well get through whatever decisions they make and it will be because the economy is doing better. Jason, back to you, in according to the names in the sector that you like here, yes, there are challenges ahead, but what are buys . The truckload sector. Its a tight marketplace, and prices for the first time in years went up mid year last year, continuing now, up 5 on a contract bay sirks and fuels come in you save on cost side. Go with coveted transportation ticker cpi, knight transportation, knx, and swift, swft. Covenant is up 223 a small cap stock. How important is it for your coverage university, jason, for the trucking names, for oil to stay where it is at this point . Well oil can rise for the trucking side, but i dont think dramatically. If Oil Goes Back to 90, then of course, trucking takes a hit. If we stay within the 40 to 60 range and keep diesel low, the truckers succeed. Doug in terms of the long weekend, theres a jobs report tomorrow although the markets are not open the equity markets, how are you gearing up for the weekend . Really no change. You know one weekend does not make a difference for me and i think your long term outlook is positive for the United States over the next two, three years. All right, guys, thank you so much for the thoughts jason and doug. Back to tyler. Thank you very much and lets go down to washington where we expect the president to deliver a statement very shortly from the rose garden area of the white house. Meanwhile, lets check in with john harwood, john . Tyler, this is a very important moment for president obamas second term. Hes made this deal with iran the overriding foreign tollpolicy goal in terms of a new achievement. Hes managing tremendous amount of turmoil in the region, a resumption of violence in iraq escalating violence in syria, the conflict with isis trouble all over the region. John boehner in israel yesterday said the worlds on fire. The president is looking for this achievement as something to be able to say we made a new path with iran in the ways approaches of the past did not work. Remember, president s have been dealing with the Iranian Nuclear challenge for some years, and they have not. Successful at it. Hes put a lot of chips in the middle of the table on this, and his statement in minutes will be the beginning of his effort to persuade americans and persuade congress that its worthwhile pursuing. An amazing complex situation with iran in the middle east right now, john, where the iranians are accused of supporting the rebels in yemen whom we oppose but of opposing isis or isil in iraq and we are joined with them i guess basically, in that conflict so it is an immensely multilayered its a head spinning series of problems that are interlocking, and as you suggested, with iran its unbelievably tricky because we are on the other side as the saudis are on the other side of the iranians in yemen, but yet we are having a de Facto Alliance with iran in going after isis in both iraq and syria, and so now the administration has a chance if in fact, they have an agreement that iran will adhere to that the world will rally behind that the congress rallies behind, that could deepen that Alliance Towards the goal of stabilizing this region that has been so unstable for so long. All right. As we await the president , lets get back to Michelle Carusocabrera for a wrap of all the developments that we know so far. Michelle . So we now have a fact sheet from the state department telling us what is in this framework, this outline for a final potential deal with iran which if they comply means lifting of sanctions in iran which have been in place now for decades since 1979. Whats in the statements in the fact sheet, they say the breakout time line, how long it takes a bomb built start to finish two to three months and now the timeline would be extended for a year. This will be disputed. Its been disputed how close they are now, depending how you assess their technology their enrichment capacity, et cetera. They say in the statement its extended for one year. The sanctions will state the ability to put the sanctions back in place if they violate this down the road. Its a snap back ability when it comes to sanctions if, indeed there is violation. Theres all different series of timelines. There are going to be delays in enrichment for ten years, and in some cases, inspections for 15 years, promises for as long as 20 years depending what part of the agreement you talk about. They are saying the International Atomic energy agency, the monitoring group, an arm of the u. N. Has much greater access to be able to monitor centrifuges and enrichment infrastructure removed from two of the facilities to be placed under Continuous Monitoring by the iaea. North korea turned off the cameras at one point so there could be a different way to do it this time around. Im speculating. Thats one of the things thats pointed out to in this fact statement. We wait the president and im sure well hear more details from him and what he thinks 1 important about the agreement, and well look through it to see if theres anymore details in here we think are particularly relevant. Back to you. Let me ask an unanswerable question. I mean, theres a lot of strange bedfellows party to the deal to put it mildly. China, russia germany, france, the United States, the u. K. , the e. U. And iran. What is the alternative, and i presume that if anyone does not agree to everything the whole thing falls apart. Whats the alternative to a deal . Is there . In theory if they do not come to a deal the sanctions should stay in place. Whats been questioned all along, particularly when it comes to europe when you talk to Business Leaders there, they feel like they are so close to being able to do business with iran that its not clear the u. S. Would be able to get all allies to stick with all of the sanctions because you need the whole world to go along with you in order for them to work and its believed that the sanctions are finally brought iran to the table. If the u. S. Looks like it has been the reason why the deal cant go forward thats been a crucial thing to look like, theyve been involvesedd as possible, its possible the europeans throw up their hands at the pressure of Business Leaders, and they give up on the sanctions, and then the whole thing falls apart. Right now, the u. S. And the statement, and what is said collectively by europe as well and the russians and chinese on this statement is if iran does not comply the sanctions stay in place. All right. Michelle a quick break while we wait for the president and well continue to monitor the developing story on a possible framework for a deal to curb Irans Nuclear ambitions. Right back after this. The pursuit of healthier. It begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. Using wellness to keep away illness. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. For as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. Help join a continent with nearly 3 million rugged square miles with a single broadband connection. When emerson takes up the challenge its never been done before simply becomes consider it solved. Emerson. Welcome back to power, awaiting two key events. On the left side of the screen the white house where president obamas expected to make a statement on iran at any moment from the rose garden. On the right hand side, switzerland where john kerry is expected to make a statement. In the meantime we are tracking the markets. Markets overall up by half a percent or so. We are seeing reaction, tyler, of course is in the price of brent down almost 4 . Heres the president walking out to the rose garden to make the statement on iran. Lets take a listen. Good afternoon, everybody. Today the United States together with our allies and partners has reached a historic understanding with iran which, if fully implemented, prevents it from obtaining a Nuclear Weapon. As president and commander in chief, i have no greater responsibility than the security of the American People, and i am kons vipsed that if this framework leads to a final comprehensive deal it will make our country, our allies and our world safer. This has been a long time coming. The Islamic Republic of iran has been advancing a Nuclear Program for decades. By the time i took office iran was operating thousands of centrifuges, which can produce the materials for a nuclear bomb, and iran was concealing a covert nuclear facility. I made clear that we were prepare to resolve this issue dipmatically, but only if iran came to the table in a serious way. When that did not happen, we rallied the world to impose the toughest sanctions in history, sanctions which had a profounding impact on the iranian economy. Now, sanctions alone could not stop irans Nuclear Program. They did help bring iran to the negotiating table. Because of our diplomatic efforts, the world stood with us. We were join at the negotiating table by the worlds major powers. The united kingdom, france germany, russia and china as well as the European Union. Over a year ago, we took the First Step Towards todays framework with a deal to stop the progress of irans Nuclear Program, and roll it back in key areas and recall that at the time skeptics argued that iran would cheat and we could not verify their compliance and the interim agreement would fail. Instead, it has succeeded exactly as intended. Iran has met all of its obligations. It eliminated its stockpile of Dangerous Nuclear material. Inspections of irans program in connection withed and we continued negotiations to see if we could achieve a more comprehensive deal. And today, after many months of tough principled deploem si, we have achieved the frame work for that deal. And it is a good deal. A deal that meets our core objectives. This framework would cut off every pathway that iran could take to develop a Nuclear Weapon. Iran will face strict limitations on its program, and iran has also agreed to the most robust an Intrusive Inspections and transparency regime every negotiated for any Nuclear Program in history. This deal was not based on trust. Its based on unprecedented verification. Many key details will be final eased over three months and nothing is agreed to until everything is agreed. Heres the details of what we are working to finalize. First, iran will not be able to pursue a bomb using plutonium because it will not develop weapons grade plutonium. The core of the reactor at iraq will be dismantled and replaced. The spent fuel from the facility will be shipped out of iran for the life of the reactor. Iran will not build a new heavy water reactor. Iran will not reprocess fuel from its existing reactors. Ever. Second this deal shuts down irans path to a bomb using enriched uranium. Iran agreed that its installed sent fumgs will be reduced by two third. Iran will no longer enrich uranium at its facility or with advanced centrifuges for at least the next ten years. The vast majority of irans stockpile of enriched uranium is neutralized neutralized. Today, estimates indicate that iran is two or three months away from potentially acquiring Raw Materials to be used for a single nuclear bomb. Under this deal iran has agreed that it will not stockpile the materials needed to build a weapon. Even if it violated the deal for the next decade at least, iran would be a minimum of a year away from acquiring enough material for a bomb. The strict limitations on irans stockpile will last for 15 years. Third, this deal provides the best possible defense against irans ability to pursue a Nuclear Weapon covertly. That is in secret. International inspectors will have unprecedented access not just to Iranian Nuclear facilities but the entire supply chain that supports irans Nuclear Program from uranium mills that provide Raw Materials to the centrifuge production and Storage Facilities that support the program. If iran cheats the world will know it. If we see something suspicious well inspect it. Irans past efforts to weaponize its program will be addressed. With this deal iran will face more inspections than any other country in the world. So this will be a long term deal that addresses each path to a potential Iranian Nuclear bomb. There will be strict limits on irans program for a decade additional restrictions on building new facilities or stockpiling materials will last for 15 years, and the unprecedented transparency measures last for 20 years or more. Indeed, some will be permanent, and as a member of the treaty iran will never be permitted to develop a Nuclear Weapon. In return for irans action the International Community agreed to provide iran with relief from certain sanctions. Our own sanctions and International Sanctions imposed by the United Nations security council. This relief will be phased as iran takes steps to adhere to the deal. If iran violates the deal, sanctions can be snapped back into place. Meanwhile, other american sanctions on iran for its support of terrorism, its human rights abuses, its Ballistic Missile program will be fully end enforced. I have to emphasize, our work is not yet done. The deal has not been signed. Between now and the end of june the negotiators will continue to work through the details of how this frame work will be fully implemented and those details matter. If there is backsliding on the part of iranians if the verification and inspection mechanisms do not meet specific kagss of our security efforts, there will be no deal. If we can get this done and iran follows through on the framework that our negotiators agreed to we will be able to resolve one of the greatest threats to our security and to do so peacefully. Given the importance of the issue, we will fully brief congress and the American People on the substance of the deal and i welcome a robust debate in the weeks and months to come. Im confident that we can show this deal is good for the security of the United States our allies, and for the world. For the fact is, we only have three options to address Irans Nuclear problem. First, we can reach a robust and verifiable deal like this one and peacefully prevent iran from obtaining a Nuclear Weapon. Second, we can bomb their Nuclear Facilities thereby starting another war in the middle east and setting back irans program by a few years. In other words, setting it back by a fraction of the time that this deal will set it back. Meanwhile, we would ensure that iran would raise ahead to try to build a bomb. Third, we could pull out of negotiations, try to get other countries to go along and continue sanctions that are currently in place or add additional ones and hope for the best knowing that every time we have done so iran has not con pitchlated but rather advanced its program, and that in short order, the breakout timeline would be eliminated and a Nuclear Arms Race in the reason could be triggered because of uncertainty. In other words the third option leads us very quickly back to a decision about whether or not to take military action because wed have no idea what was going on inside iran. Iran is not going to simply dismantle its program because we demand it to do so. Thats not how the world works. Thats not what history shows us. Iran has shown no willingness to eliminate aspects of their program they maintain are for peaceful purposes. Even in the face of unprecedent unprecedented sapgss. Should negotiates collapse because we, the United States rejected what the majority of the world considers a fair deal what our scientists and Nuclear Experts suggest would give us confidence that they are not developing a Nuclear Weapon. Its doubtful we can even keep our current International Sanctions in place, so when you hear the inevitable critics of the deal sound off, ask them a simple question. Do you really think this verifiable deal if fully implemented, backed by the worlds major powers is a worse option than the risk of another war in the middle east . Is it worse than doing what weve done for almost two decades with iran moving forward with its Nuclear Program and without robust inspections . I think the answer is clear. Remember, i have always insisted that i will do what is necessary to prevent iran from acquiring a Nuclear Weapon an i will. I also know that a diplomatic solution is the best way to get this done. It offers a more comprehensive and lasting solution. It is our best option by far. While it is always a possibility that iran tries to cheat on the deal in the future, this framework of inspections and transparency makes it far more likely well know about it if they try to cheat. I and future president s will have preserved all of the options that are currently available to deal with it. To the iranian people, i want to reaffirm what i said since the beginning of my presidency. We are willing to engage you on the basis of mutual interests and mutual respect. This deal offers the prospect of relief from sanctions imposed because of irans violation of international law. Since irans Supreme Leader issued against development of Nuclear Weapons, this framework gives iran the opportunity to verify that the program is in fact peaceful. It demonstrates that if iran complies with international obligations, it can fully rejoin the community of nations, therefore fulfilling the aspirations of the iranian people. Thats good for iran an for the world. Of course, this deal alone, even if fully implemented will not end the deep divisions and mistrust between our two countries. We have a difficult history between us. Our concerns will remain respect to iranian behavior as long as they continue a sponsorship of terrorism, support for proxies who destabilize the middle east its threats against americas friends and allies like israel and so make no mistake. We remain vigilant in countering those actions and standing with our allies. Its no secret that the israeli Prime Minister and i do not agree on whether the United States should move forward with a peaceful resolution to the iranian issue. If, in fact Benjamin Netanyahu is looking for the most effective way to ensure iran does not get a Nuclear Weapon, this is the best option. I believe our Nuclear Experts can confirm that. More importantly, i will be speaking with the Prime Minister today to make it clear that there will be no daylight. There is no daylight when it comes to our support for israel israels security and our concerns about irans destabilizing policies and threats towards israel. Thats why ive directed my National Security team to consult closely with the new Israeli Government in the coming weeks and months to further stengthen cooperation with israel and make clear unshakable commitment to israels defense. Today, i also spoke with the king of saudi arabia to reaffirm commitment to the security of the partners in the gulf and im inviting the leaders of the six countries who make up the gulf cooperation counsel, saudi arabia United Arab Emirates kuwait, ga tar, and bahrain to talk about how to further strengthen our security while resolving conflicts that caused hardship and instability throughout the middle east. Finally, its worth remembers that congress has, on a bipartisan basis, played a Critical Role in our current iran policy. Helping to shape the sanctions regime that applied so much pressure on iran and ultimately forced them to the table. In the coming days and weeks, my administration will engage congress again about how we can play a how it plays a constructive oversight role. That will begin by speaking to the leaders of the house and senate today. In the conversations, i will underscore that the issues at stake here are bigger than poll politics politics. These are matters of war and peace. They should be evaluated based on the facts, and what is ultimately best for the American People and for our National Security. For this is not simply a deal between my administration and iran. This is a deal between iran the United States of america, and the major powers in the world. Including some of our closest alial allyies allies. If Congress Kills this deal not base on expert analysis without offering a reasonable alternative, then its the United States that will be blamed for the failure of diplomacy and cooperation will collapse and a path will widen. The American People understand this which is why a majority support a diplomatic resolution to the Iranian Nuclear issue. They understand instinctively the words of president kennedy, who faced down a far greater threat of communism and said let us never negotiate out of fear, but let us never fear to negotiate. The American People remember that at the height of the cold war, president s like nixon and reagan struck Historic Arms control agreements with the soviet union a far more dangerous adversary. Despite the fact that that adversary not only threatened to destroy our country and our way of life, but had the means to do so. Those agreements were not per felgt. They did not end all threats, but they made our world safer. A good deal with iran will do the same. Today i want to express my thanks to the International Partners for their steadfastness, cooperation, and i was able to speak earlier today with our close allies Prime Minister cameron and chancellor merkel to reaffirm we stand shoulder to shoulder in this effort, and most of all, on behalf of the nation i want to express my thanks to our tireless secretary of state john kerry. And our entire negotiates team. They have worked so hard to make this progress. They represent the best tradition of american diplomacy. Their work our work is not yet done. And success is not guaranteed. We have a historic opportunity to prevent the spread of Nuclear Weapons in iran and to do so peacefully. With the International Community firmly behind us. We should seize that chance. Thank you. God bless you, and god bless the United States of america. All right, the president concluding a 25 minute set of remarks about the framework for a deal to curb irans development of Nuclear Weapons. John harwood is with us in washington. This was the first and robust explanation of the whys and hows of this deal, but it will not be the last from the white house. Absolutely not. It was apparent from the president s manner and body language and way of speaking to the press as well as the country and the world hes ecstatic about this agreement, thinking its a history shaping agreement, and hes going to fight very hard to defend it. He said this is not based on trust that we will cut off every path that iran has to building a Nuclear Weapon that we will provide sanctions relief in return for iranian progress and if we determine cheating, sanctions can be snapped back in place, and he challenged the congress not to interfere with an agreement that our major allies, the e. U. Russia as you mentioned earlier, have all signed on to and hes basically saying this is not about president obama, because clearly, hes a polarizing figure in the congress. This is about the United States and the rest of the world. Hes going to push hard for it. Im going to interrupt you as we see john kerry now, clearly waiting for the conclusion of the president s remark to speak and make his own comments of whats going on. Good evening, and excuse me thank you, all, very much for your patience. I want to start by expressing an enormous thank you to the people and the government of switzerland for their incredible generosity, in the way they welcomed us and the amount of effort is really extraordinary, and were really really grateful to them. Throughout the entire process, certainly over the past week the people of switzerland have gone above and beyond in order to facilitate these negotiations, and i dont think anybody could imagine a much more peaceful setting in order to pursue a peaceful path forward. I also want to thank the very many other nations that provided a home for the negotiations over the past couple years. People forget that. Its. Going on that long and that is includes austria, which was incredibly generous in hosting our delegation in vienna for a long period of time, and oman not only hosted a number of important meetings, but played a Critical Role in getting these talks off the ground in the first place, and then of course, we say thank you to turkey russia, kazakhstan iraq and my home country, the United States. I particularly want to thank president obama. He had been courageous and determined in his pursuit of a diplomatic path, and from the day that he took Office President obama has been Crystal Clear that a Nuclear Armed iran would pose a threat to our security and security of the allies in the region including israel. Hes been just as clear that the best and most effective way to prevent that threat is through diplomacy. The Journey Towards a diplomatic solution began years ago, and i can tell you ive personally been involved for about four years beginning from the time i was serving in the United States senate. Others have been on this journey and some of the others in our team for even longer than that. As foreign minister zarif and high representative represented moments ago, today, we reached a critical milestone in the quest. We are e. U. Partners and iran have arrived at a consensus on key parameters of an arrangement that once implemented will give the International Community confidence that irans Nuclear Program is and will remain exclusively peaceful. And over the coming weeks, with all of the conditions of the 2013 joint plan of action still in effect from this moment forward, our experts will continue to work hard to build on the parameters arrived at today and finalize a comprehensive deal by the end of june. Now, weve said from the beginning, and i think you heard me say it again and again, that we will not except just any deal that well only accept a good deal and today, i can tell you that the political understanding with details that we have reached is a Solid Foundation for the good deal that we are seeking. It is the foundation for a deal that will see iran reduce its stockpile of enriched uranium by 98 for 15 years. It is a deal in which iran will cut its installed centrifuges by more than twothirds for ten years. It is a deal that will increase irans breakout time which was confirmed publicly today to be two to three months and that is the time that it would take iran to speed up its enrichment in other words to produce enough fissile material for one probably Nuclear Weapon and that will be expanded now under this deal to this deal to one year from those two to three months. That is obviously as much as six times what it is today and what it has been for the past three years. Id like also to make one more point very very clear because it has been misinterpreted and misstated, misrepresented for much of this discussion. There will be no sunset to the deal that we are working to finalize. No sunset. None. The parameters of this agreement will be implemented in phases. Some provisions will be in place for ten years. Others will be in place for 15 years. Others, still, will be in place for 25 years. But certain provisions including many transparency measures will be in place indefinitely into the future. They will never expire. And the bottom line is that under this arrangement, the International Community will have confidence that and youve been listening to secretary of state john kerry speaking in switzerland. We have much more reaction when power lunch comes ss right back. Stay tuned. Thank you for being a sailor, and my daddy. Thank you mom, for protecting my future. Thank you for being my hero and my dad. Military families are thankful for many things. The legacy of usaa Auto Insurance could be one of them. Our worldclass service earned usaa the top spot in a study of the most recommended Large Companies in america. If youre current or former military or their family, see if youre eligible to get an Auto Insurance quote. Lets take a look at where the equity markets stand right now. The industrials hangs on to a very solid gain of a third of a percent. 5555 the point raise. Nasdaq up about. 1 . The s p 500 up about six points. Well be back and talk about oil and more after this. Ven on the go. Tdd 18003452550 open a schwab account and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 so when a market move affects one of your positions, tdd 18003452550 schwab can help you decide what to do. Tdd 18003452550 with tools like free livestreaming cnbc tv tdd 18003452550 that give you the latest Financial News and trends. 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With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. On days with significant news flow like today, its always interesting to look at a fever line of how the dow and the s p have been doing. There you see a bit of a rise at about 2 00 p. M. When it became very clear at this deal has been reached. Actually the news was sort of telegraphed most of the morning. But it has been a fairly steady day for the dow industrials on the upside. And the same can be said for the s p 500. It is tracking roughly where it was. It took a low around noontime. There you see the nasdaq dipping into the red briefly just after the open and around noon. Melissa . We saw the reaction in the oil markets. Joining us on the phone is andy lipout. Great to have you with us. In terms of the likelihood of the barrels of oil iran has stored in supertankers off shore, what is the likelihood that actually comes onto the market based on this framework . I think its very likely to come on the market except its not going to be in the next couple of months. More like hi in the Third Quarter of the year. The market is going to put that into its value of crude oil and as a result, were going to see brent prices under much more pressure than wti. And in terms of the push pull that weve seen coming out of the middle east not only do we have this pushing prices down but we also had in earlier days the concerns about yemen and the strait there not being able get the oil out. In your view, what is predominant in terms of the forces controlling the oil market right now . I think its actually the sanctions being lifted on iran and the other thing we havent talked about much is the reopening of some libyan oil ports, the major oil ports and production is rising to over half Million Barrels a day. And in combination with more iranian oil, were going to see the market even further oversupply. Weve got about 20 seconds, andy. Give me a prediction in terms of brent. What levels will we see . I think real quickly, brent can decline 3 a barrel down to 52 and make a test of 50 if the sanctions get relieved quite quickly between the European Union and the u. N. All right. Tessa 50la 50 bucks on brent. Thank withdrew foryou for joining us. Thank you. Andy lipow. Toy tyler, ill see you tonight. Cisco going up against apple into the final four and the chairman of biogen to comment on the crazy volatility weve seen the Biotech Sector lately. All right. Well be watching tonight. Melissa, good to have you back. Ive been in for Brian Sullivan all week. Well be back next week. Have a happy passover and a very godod easter as well. And the closing bell starts right now. And welcome to the close l bell everybody. Im kelly evans to close out the week at the new york stock exchange. Im bill griffin. Stocks are trying to get into the winning column for the first time in april on the second or third trading day. Dont forget this is the last trading day of the week. The stock market will be closed tomorrow for good friday. We might see volatility here in this final hour of trade. A lot going on right now. Even though markets are closed tomorrow the crucial march jobs report will be released 8 30 a. M. Eastern time. Now