We will have exquisite interview with the chairman and founder of Colony Capital, tom barrick. We want to check in on the markets. Jon is taking a look at the turkish indices and the turkish lira. Jon equity markets are down 5 . Not reflected elsewhere, you can see markets in europe fairly stable, the ftse outperforming, a third of 1 . There is a big move there. There is a 40 premium offered by softbank or that deal look looks like the ftse gets a nice little lift. Market, the turkish lira, a big move. Slightly stronger in todays session. But that riskoff tone not really reflected in the fx market, it is a weaker japanese yen story. We trade at 105. 62 on the session. In the bond market, this is where things get interesting. Last week, an ugly session for treasuries. Ields up 20 basis points again today, you see bond yields inching higher on treasuries. In the commodity market, slightly softer. 47. 36 is how we trade on brent. Alix there is news concerning lending club. Chiefk dunn will be the executive officer at the company. He had many senior roles at black rock, ishares, and barclays. The stock had apparel. After he resigned in may. Ick done lets go around the world and check in on Bloomberg Team for indepth coverage of all of our top stories. Riyadh hammadi is in istanbul on what is next for turkey after the failed to attend. Hugh son is in new york, and nejra cehic is in london on softbanks agreements to buy britains arm holdings. David the top story is happening in istanbul in turkey. React hammadi is from bloomberg riyadh hammadi is from Bloomberg News and what is it like on the streets of the stumble . Are people going on with their business . Are shops open . What is happening over there bank . I arrived last night, and it all seems quite normal. The only thing i can say was not that normal is that there are a lot of cars in the streets, people honking their horns, waving their flags, so a celebration of victory over the coup. I other than that have not been to ankara or other parts of turkey, but from what i can see, things have been relatively normal. David lets talk about the economy. The turkish economy was not having an easy go of it before coup. Tempted how will this affect the economy in turkey . Riad the crucial element is foreign money. That had been improving in the first five months of the year. Hey had a net inflow of money whereas last year there was an outflow of money. It was actually good news for the turkish economy. Now investors are going to be questioning the Political Risk efforts. David i understand that president erdogan is taking steps to reassure investors. What are they doing and saying . President erdogan has not spoken today yet. But his Prime Minister has spoken. The deputy Prime Minister, who is a member of the Economic Team , the last man standing in the economy team, they are reassuring investors saying that everything is back to normal, saying the central bank is having a meeting tomorrow on Interest Rates, which has already come out with a statement saying they will provide liquidity as needed. David many things to riad hamadi. I understand that the Prime Minister has put the number at 232 people have died in the two. In the coup. Alix the stock is up by about half a percent. But anyway you slice it, revenues are down. Profits are down. If you look at the actual earningspershare, up . 36, they beat by three cents. That is why you see the stock reaction up a bit right now. Alix how does this compare with j. P. Morgan and citigroup . The results are good. If you look at the results of jpmorgan, the results of citigroup, both of them beat because of their fixed income trading coming in higher than expected. If you look at the 2. 6 billion revenue in fixed income trading, that beat by about 250 million. On the flipside, equity trading revenue was like, down by 7. 6 . Also, net interest margins were lower. Talk to us about the downside. Hugh expenses have not fallen s fast as you would hope or expect. Net interest margin is compressed, the results of low Interest Rates, and they have not benefited as much as jpmorgan did by the december rate hike. There is alot to lot to look at. However, their valuation is low compared to jpmorgan and some other banks. So there is reason to be optimistic. Alix so it is all about value for that. Thank you so much, hugh son. You definitely want to head to the bloomberg. We do have news. Jon a chunky tech deal with quite a premium. , post brexit. There is an fx move to talk about. Lets bring in nejra cehic on softbank in the deal it is about to go through with arm. What is the stock price reaction . Nejra you can see it tracking on this chart, the holds jumping , up 43 at the moment. There was a 43 premium to fridays close, a 32 billion takeover by softbank of arm, cash. Ence per share in this will happen quickly, and you can see how quick the reaction happened as well. Let me give you some context because this share price move today is the most on record for arm. I have taken us all the way back to 1998. Short interest in arm holdings it was close to a sixyear high at the end of less week. People short on this stock are not looking very smart at the moment. Jon with arm you get every mobile Computing Device on the planet, the chips that go into those devices. The other thing to get the deal through is low execution risk. Onarly the market is trading a price that they consider to be low risk. They minister may says would move away from what she called a soft touch on one of the big deals. How do politics play into this deal . Nejra we actually got a contact a comment from the chairman of the exchequer, philip hammond. He said it shows the strength of the britain economy. He also said this deal would would turn this into a global phenomenon. It is positive from the u. K. Government at the moment. What might have helped is that softbank did say it would keep up their headquarters in cambridge in the u. K. , and would double the u. K. Headcount in the next five years. There were some concerns over reaction to this given what a homegrown tech Success Story is in the u. K. Thank you very much. The stock up over 42 in london trading. That is some of the big stories impacting the world of business. Here is taylor riggs with headlines. Rouge, in baton louisiana, the man who killed three Police Officers and wounded others was a former marine. The attack took place less than two weeks after it lacked man was killed by Baton Rouge Police. The there of will be daily demonstrations of groups before and against donald trump, and many of the elected officials and donors are showing their unhappiness with trump by staying away. Britains new foreign secretary says the u. K. Will not abandon its Boris Johnson arrived in brussels today. He was named the top diplomat in the shakeup after the country voted to leave the eu. Boris johnson it is good to be here for my first overseas trip, and the message i will be taking ismy friends in the council that in no way are we abandoning leading in europe. Taylor johnson said the events in turkey and france underscore the importance of working together. Global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world, i am taylor riggs. This is bloomberg. Alix coming up jon coming up, the fallout from a failed literary takeover. How it affects turkeys image as a stable democracy. More bloomberg is next. This is bloomberg. Jon from new york city, this is bloomberg. Joining us from new york city is turning us is mark grossman. For a lot of people from the outside looking in that are not familiar with turkey, i think they were surprised that those erdogansed president were also those who opposed a military coup. Can you walk us through the historical significance of military coups in turkey . Thank you for having me. I think this is an important development. The history of turkey over the years, they have had four military interventions, and i find it striking the fact that even those who oppose mr. Erdogan came out in the thousands to opposed to military to. They knew it would be bad for turkey, bad for turkish democracy, bad for turkey Going Forward, bad for the economy. It was a striking development. Jon it seems even though it failed it could be bad for democracy, given that president erdogan is speaking for executive powers. His role used to be ceremonial. How is this developing in the coming months . Marc that is exactly the right question. The issue is, what choice do they make . They have a choice to pursue the authoritarian path that they have been on. This increasing power of the presidency, pressure on the rule of law. Or the question for friends of turkey is, iit Wishful Thinking or an illusion that they might be able to take what happened friday night, the terrible death toll, the shock to the system, and recognize maybe there is a change in course required to i do not know whether that will be true or not, but that is absolutely the choice facing them right now. David the geoPolitical Risks for president erdogan do not limit themselves to the attempted coup. We also have the pkk and the problem with islam a state. He has to be concerned about security. Absolutely he does, and all of his friends, neighbors, alsos also have extreme have to be extreme concerned as well. If you see the comments from secretary kerry, what was the first thing on the agenda he act oh will you continue to fight isis, isil . Absolutely, the geopolitical piece of this is enormously important. One of the issues facing president erdogan is, can he restart or would he be prepared to restart a dialogue with the kurds if he chose to seek reconciliation with his own society . For that is a big question politics. The big question for business and investors, so far this years investors have been biased. When you cancel his people about the risk, the perceived risk in turkey, do they care about democracy act oh does democracy matter to them, or do they just care about certainty . Marc you are right about people making choices in business now. When you look at the economy, growth is slowing and tourism is down. What business is interested in is the rule of law. If they invest there, will there be rule of law . Do they have a chance to pursue their investments in an environment where they have a fair chance of redress, arbitration . I think that is what people will be looking for. Therefore, i think longterm investors are interested in a tolerant and pluralistic turkey focused on rule of law. We will see what happens next. David your point is exactly in the direction i wanted to go, which is the judiciary. We sometimes overlook the fact that real actions were taken and will continue to in terms of the judiciary. How concerned should we be as investors . Marc very concerned. 2700 jurists, including some from the supreme court, have been detained in some way. This rule of law question i think is fundamental. Is tolerance, pluralism, will of law. Those are all the choices that president erdogan and his supporters face right now. They can continue this path toward a more authoritarian system, president ial powers, or they can make a choice saying what happened friday night is a message that that system in Society Needs reconciliation. I do not know what will happen, but it is something we will all be watching for the future. Criticalrule of law is for turkeys future if they want to be part of the European Union. One member is set to leave the eu. I just wonder, the developments over the weekend and how you see this is set to continue in the coming weeks, months, potentially years, what does this mean for eu talks . Marc you would have to imagine that you took the brexit vote as , boy, i am glad i am a part of that. But i will continue to use my interest in the European Union to make sure this refugee deal stays on the agenda so that i can get more money, get more conversation with the European Union. So i think he will continue to see the refugee piece be an important focus on the conversation with the rupee in union. On the European Union side, they are going to be very concerned with a European Union. On the european side, they are going to be very concerned with brexit and what happens with the rule of law. The question here with the European Union is, can turkey and the European Union be honest enough with each other to get on with some useful ties, useful conversation, or will they continue to talk past each other . Rc grossman, former u. S. Ambassador to turkey. We are going to dig into these markets, the lack of understanding about politics. This took a lot of people by surprise on friday. Even people who know turkey inside out. Alix and with emergingmarket assets, many investors say they are bullish on them. What is the fact what is the effect on that . Second quarter profits falling by 21 . We will dig deeper into the report with the top analyst next on go. This is bloomberg. Vid this is bloomberg we are turning to bank of america earnings beat analyst estimates this morning. We are joined by paul miller, fbr and co markets head of institutional research. Paul covers the banks for them. Thanks for joining us. Give us an overview. They beat on revenue and on earnings per share. What do you take first and foremost away from these earnings . This was a Strong Quarter. The last two quarters have been tough for bank of america, due to the flattening yield curve and lower rates. But they did very well on the banking and investing and trading. Expenses were probably the lowest we have seen for these guys. They are still working through some of the tough situations they were put in through the crisis, but this is one of the better quarters we have seen in a while. Alix in terms of digging into trading revenue, equity trading revenue is down by 7. 6 , Wealth Management also down by 2 . Citigroup and jpmorgan set a high bar. Compare bank of america to its peers. And the other guys are much bigger in the Capital Market side of the business. When you get some really strong trading, those guys will fall to the bottom line quicker than bank of america. Bank of america is working through a smaller space that they have to work through. Relatively speaking, bank of america had a good trading quarter and a good Investment Banking quarter. David the equity trading was down, but their fixed income is up. That is much more important it fixed income is much more important than the equities in these countries in these companies. David yearoveryear comparison, they are off. The other banks are off as well. The thing that intrigued me was the return on tangible capital equity. How did they bring that up . Is theye bottom line had a Strong Quarter a year ago, so it is flat yearoveryear. The third and fourth quarters and the First Quarters of these companies were tough, so they are getting back to where they were a year ago in a very tough Interest Rate environment and a tough trading environment to boot over the last couple of quarters. It is tough for banks in general turn money today, and for bank of america, they are going to surprise on the upside and i think stocks will go up today on this news. Alix the other question to me was that the Consumer Banking unit, stocks were up today. That was different from the citigroup and jpmorgan, showing underlying consumer weakness. What did you make from that read . You are not getting all the real data, but, yes, consumers are still being tough out there bank, and it is still subtle. David as you pointed out, bank of america, perhaps more than its peers, are vulnerable to the swings in Interest Rates. When they come down, they get hurt pretty badly. What happens with Net Interest Income . Jpmorganstive to the of the world and the citis, bank of america tends to be more net sensitive. Rates going up and down like this is really tough for them. So david paul, thank you very much. All miller, fdr Capital Markets. Coming up next, the Republican National convention here on bloomberg. This is bloomberg. Jonathan this is bloomberg. Lets get a check of global markets. Gains,hree weeks of futures are a little bit firmer. In europe, things are stable. Some outperformance on the ftse 100. In the fx market, not risk off even with the events in turkey. There is a stronger pound and a weaker japanese yen. The interesting move last week was not the alltime highs in equity markets, it was a significant backup and treasury yields. Yield on the tenure were up around 20 basis points last week. In todays station, up another 2 basis points. Those are some of the moves in the markets. Groupon have to look at 11 . Piperp by about jaffray gave a 50 price increase, upgrading to overweight, saying they are not taking into account Consumer Loan growth. That helps groupon stock. Ericsson stock is lower today. The Company Recognized almost 17. 5 alien dollars in sales before clients were 17. 5 billion dollars in sales before clients were notified. Roche has a light cancer medication that is not showing improvement and that stock is down slightly in the market today. Lets look at whats making headlines. Taylor the Republican Convention gets underway today in cleveland. The party pozner National Chairman says it is Donald Trumps chance to convince americans he can be the partys Nationa