Tourist dollars. Recordook details the government fine against General Motors. Lets begin with the continuing crisis in ukraine. Ukraine says it needs an extra 4 billion in new capital to keep its ink solvent. How did they arrive at that figure . It is the solvency of banks. s a lot of those branches are not open. They are worried about the devaluation of their currency, down about 30 this year. I think that is going to be something people will have to deal with. Ukraine is scheduled to hold president ial elections on may 25. Just what is at stake . For any are big stakes president elect, lets be honest. They have to reset relations with russia. Also looking at some of the separatist regions east of the country. Asp. The dispute over this is a big issue between the two countries. Also the dispute over gas. Whoever the president is will have to deal with these things very decisively and quickly. Ukraine depends on russia for about half of its gas, as you just alluded to. Russia raised the price 81 . What is the latest with the disputes . This inl look at ukraine next week in more detail. Essentially, russia is saying you will have to pay for this gas up front and ukraine is too hi. Hat price is far for ukraine, gas is key to manufacturing the red and we all know the Energy Security of lots the key toon manufacturing. And we all know the Energy Security is paramount to the region. Joining us live from london. Thanks. U. N. R u. S. Ambassador abbasid or to the United Nations Thomas Pickering sat down with al hunt today. They discussed whether russian president Vladimir Putin would be intervening in the ukrainian elections. Here is what the ambassador had to say. Putin is tempted, as he has been tempted all along, to push the envelope as far as he can. I think a response has to be firm. But i always thought our theonse should be before may 25 election and it should be a combination of, one, sitting down with mr. Putin and the ukrainians and figuring out how his legitimate needs while we meet the needs of the ukrainians. For more of his interview with ambassador pickering, i am joined by al hunt. Thanks for your time. How should how worried should we be about putin interfering in the ukrainian elections . Very. It would be a huge embarrassment for the Obama Administration, is signed their threats have not been taking seriously taken seriously. I think it is very important whatever the outcome for those elections to take place relatively free of outside interference. Andnot sure Tom Pickering others are optimistic that is going to happen. Pickering along with general mullen wrote the accountability review board after the attack in syria. Paneloehner appointed a to investigate the benghazi attack. He has questioned whether the ambassador had all of the documents he needed for resume. Listen to the ambassador for a response. We got information, documents on the five tasks we had to do under the law. We were not there to look at talking points. We were not there to look at event would call post political hand wrestling. So, of course, there could be things that were not within our mandate that we did not get material on. The benghazi select panel. Do the ambassador say there was a reason to reopen the discussion . He really cant find one. He is looking. He does note that their mandate was about security. What this select committee is about is about politics, about whether the Obama Administration played politics with us. With this. I think the problem for Thomas Pickering and mike mullen is, this is not new. There have been five different committees that have looked into of documents. Ses comenot know what they can up with substantively, but they may be able to score political points, republicans. What is the biggest hole in the peace plan at this point . How can i count the ways. I think john kerry has made an extraordinary effort, but i cannot find anyone very optimistic. Irani nuclear agreement, any hopes for getting that deal done . Yes. I am more optimistic about that. More importantly, Thomas Pickering is more optimistic about that. He is a genuine expert on the problems and the substance. He has been involved in discussions. 50hink there is at least a 50 chance there will be an agreement by july, which would be a huge accomplishment. But it will create talk politics in tehran and washington. My colleague al hunt joining us from the nation from capital. You can see all of his interview with wormer ambassador Thomas Pickering on Political Capital right here on Bloomberg Television. Narendra mode he will be indias will bearendra modi indias new Prime Minister. The congress party, which has ruled india for 60 years, conceded defeat this moment. Back in this country, federal regulators say that General Motors waited almost a decade before announcing a safety recall that now covers more than 2. 5 million cars. Theyre delayed report will now cost of company a record 35 million civil penalty. Chief washington correspondent peter cook has more on the companys punishment. Peter, the timing of this announcement was a surprise to many. It did come as a surprise. They were waiting for gm to wrap up the internal investigation. But at a News Conference today, transportation secretary anthony making clear federal regulators already have enough information to conclude gm broke the law not telling regulators about the ignition problems. At least 13 fidelitys have been linked to the defect. Fatalities have been linked to the defect. What we will never accept is knowing about a danger and says nothing. Maximum civil the penalty allowed by law. 35 million. That is a record. The company said it did not disclose details in a timely manner. The company also agrees to ongoing oversight from federal regulators. In a statement acknowledging the agreement today, gm Ceo Mary Barra said we have learned a great deal from this recall. We will emerge from the situation a stronger company. After therose announcement, perhaps relief that the penalties were not higher. Far from over. Re we also learned today the Company Faces more than 60 civil lawsuits as a result of this recall situation. Peter, are there more investigations to come . There are. Congress is still investigating g. M. s handling of the ignition switch issue. The Justice Department is looking into it. And justice carries a much bigger stick here. You may remember the deferred prosecution agreement with justice died to be handling of accelerator issues. That is not lost on mary barra and the rest of gms management. Peter cook, thank you. Meantime, General Motors is recalling more than 8000 midsized cars to fix a problem with the brakes. It affects Buick Lacrosse and chevy malibu. Recall this24th year. Since january, gm has recalled million cars and trucks. Coming up, does an unexpected drop in Consumer Confidence signal trouble for the u. S. Economic recovery . I will ask the chief economist at barclays when we continue in just a moment. Join us on monday and a first bloomberg interview. My colleague betty liu will sit down with Warren Buffett live at around 2 30 new york time. Mr. Buffett will be in omaha where 4000 children have submitted Business Plans to be in the Warren Buffett secret millionaires club. The finalists will present their ideas to mr. Buffett and a team of judges on monday. Grand Prize Winners will receive 5,000. Join us on monday for betty with warreniew buffett. The pace of Home Construction while 13. 2 in april Consumer Confidence unexpectedly fell from a ninemonth high. Dean maki is a chief economist at barclays capital. He joins me from his firm here in new york. Good to see you here. Good to be here, mark. Of that came from apartment construction. What does that tell us about americans inability or lack of desire for purchasing singlefamily homes. There are a lot of reasons. The big reason is the homeownership rate in the u. S. Has fallen substantially. Those people who used to be homeowners are becoming renters. We are also seeing people move out of their parents houses, for theple and going into rental market. That is why the rental market is so strong. Wages are flat. For all the talk of labor market gains, millions of americans who want to be employed still cant find a job. Just is it or just how hard is it for people to save for home and do you see credit loosening to purchase homes . Credit conditions are still pretty tight. It is one of the aftereffects of the housing crash. They are not getting looser at this point. I think people are having to save. It is taking longer to get into houses. But more and more people are wearing that bar over time. That is why we have been in a housing recovery despite those tight credit conditions. The past couple of years we have heard stories about adult children, those in their 20s and early 30s, moving back home with their parents because they were burdened with school loans and other dead. Do we see that situation starting to ease somewhat . Burdened with school loans and other debt. It is easing somewhat. It is not a great labor market for young people, but it is better than it is. Bennett has been. That is boosting demand in the rental market. The recession ended five years ago. Why has homebuilding not rebounded in that time . There are still a lot of work closure is in the liquid seas on homes. There has been a high level of those for quite a long time. There are still a lot of foreclosures and delinquencies on homes. So, that is a key reason why this is only a moderate housing recovery. I am speaking with dean maki, the chief economist at barclays capital. Well activity accelerates and in the coming months . We do think it will. Certainly we have had headwinds the the rise in rates and severe winter weather, but we think as we move through this year, the moderate recovery will continue. Im not worried about housing in the sense of going into a new downturn or flattening out indefinitely. I do think housing is in a recovery mode still. , you said moderate recovery. Can you give us a sense of what that means in terms of acceleration . The Housing Market has been growing five percent to 10 on average in this recovery. We think that is realistic going forward. It will not be what we saw of the past,eriods but more that high singledigit range. That drop in Consumer Confidence. What has americans concerned and what willing purge them to boost their own spending . Encourage them to boost their own spending . It was not that large a drop. I think the main thing to take away run the confidence numbers relativelys are cautious. Confidence levels are a lot lower than the boom years of the past. That is a reason why we are not in a boom period as well. The numbers resent a mixed picture. We saw a drop in may when before that we had strong auto demand. The month before we had a strong employment report as well. It is hard to pin down these small moves up and down. Most people were looking for a modest increase this month. It went the other way. I do not think there is an easy way to say exactly why. In our last arty seconds, what has the Federal Reserve done to take away from this 30 seconds, what is the Federal Reserve done to take away from this mixed Economic Data . The dentsve taken out from some of the data, the unemployment report, some of the numbers for the second quarter. They have taken confidence from some of the data. They also will be looking at the inflation numbers, which are trending higher at this point. Be of concern, but concerns about this inflation should be easing now. The fed will be tapering steadily going forward. Chief economist at barclays capital, joining us from his office. It is always great to have you on the broadcast. Thank you. Up next, a check on the markets and we will wrap up the foretwork up fronts advertising. That is coming up. A reminder, there are multiple ways to watch Bloomberg Television. We are on the web at your mobilem, on device, on apple tv, and on amazon fire tv. Com, your mobile device, on apple tv, and amazon fire tv. The u. S. Army spent 300 million to develop an aircraft as a floating spy center, but ran out of money. Now a British Company is giving it new life. It is the worlds biggest flying machine. Ander is larger than a boeing 747 and 20 feet longer than the previous title holder. Usesblimp like airship helium to get off the ground, but uses its aerodynamic shape to stay in the air. It can hover in the same spot for five days straight and can land on sand, water, ice, or snow. British Aeronautics Company hybrid air vehicles the ability original model for the program 2013. T of funding in months later, they bought back the project. Several months later, they brought back the project. Airlander has attracted some unusual fans. Bruce dickinson, the lead singer of the british heavy metal band iron maiden, has invested 400,000 in the project. He wants to fly it nonstop around the world. The Maiden Voyage is scheduled for 2015. Up on 26 coming minutes past the hour. That means Bloomberg Television is on the markets. Our senior markets correspondent julie hyman standing by with details. Good. Not a very dramatic session to end of the week. We have a gains and losses. Economic data on Housing Starts and Consumer Confidence. I know youre talking about that earlier on. Take a look at jcpenney. It is soaring. The Department Store chain is billionmore than 2. 5 in losses over the last three years. A provider of Computer Services hired Morgan Stanley to seek out strategic options. Usually that will include a sale. Amazon and google cut prices on competing products at a faster pace than they had anticipated. We will be on the markets once again in 30 minutes. We will also have our weekly etf update, a look at the greatest and latest in that space. E aftermore bottom line the break. Welcome back to the second halfhour of bottom line on Bloomberg Television. Im Mark Crumpton in new york. Thanks for staying with us. Evacuation orders have been lifted in an area near the everal wildfires in southern california. Crews the containment lines and hope that cooler temperatures will help them make progress. A flareup in a san diego server prompted over 18,000 new evacuation notices san diego suburb prompted over 18,000 new evacuation notices. The forecast today calls for temperatures to peak around 90 degrees with lighter winds. Chaied lobster seafood n is being sold. Sales for revlon lost or were forne percent last red lobster were down nine percent last quarter. This will allow darden to focus on the all of darden restaurants. When hundred 32 million worth of art, estimated at 50 millionto 60 million 50 Million Contract 60 million. The director of contemporary art at philips laced the winning bid 6. 2 Million Dollars with fees. Those are the top headlines at this hours. Stressed budgets for states have m battling for to a stars tourist dollars. Nebraska has a new slogan. Visit nebraska, visit nice. Will this bring visitors to the cornhusker state . Phil mattingly looks at it and whether these campaigns are really worth it. You heart new york . I heart d. C. One thing we can agree on. Stays inens in vegas, vegas. And we are all participants in marketing campaigns. States looking for dollars are no different from businesses. How about dont mess with texas . Generateds pr firm hundred 10 Million Dollars of travel spending in 2012. Where are you . Youre in california. They came in last in travel although their2, slogan was its good to be first. For spending,r but significantly less than the 75 billion spent by the top national advertisers. With limited funds, how does a state stand out . Not hurt. Gan does texas, nevada, and new york are all in the top five. The worst performers . They have slogans, too. They need a revamp. Natural wonders or a natural wonders are the primary reasons people packed their bags for a visit. But those marketing dollars to pay off. If that fails, maybe free advertising from your friends in hollywood wont hurt. That is what maryland does Phil Mattingly joins me from washington, without the tshirt of course. To us about each state contribution to the overall u. S. Tourism industry. How do they rank globally . Even in tough economic times, the u. S. Is still up there. In 20 13, the 2013 brought in trillions. Formula of the state tourism offices follow, something everyone seems to mimic . It is interesting. He states that do it the best have the most sophisticated operations. Most that bring in the money, have the most sophisticated operations. If you look at california, they do a really interesting thing. They have a publicprivate tourism office. Their return on investment in advertising, for every one dollar spent, they get about 15 back in tax revenue. Nevada also very talented. They do have a government operated tourism office. Their number one business. Their return on investment . About 20 for every one dollar spent. Lots of ways to do it, but the ones that make the investment clearly see results. Phil mattingly joining us from washington. Thank you. Good story on the bloomberg terminal about las vegas. Standard Poors Rating Services says that Global Warming will hurt credit worthiness of countries this century. According to the rating agency, Global Warming is one of these ndscalled global megatre along with aging populations that pose risk. Spoke about that had an interview about this. The president has been a leader on climate change. Been more and more focused on this. Able toirst term he was double the miles per gallon standard for cars. Now he is absolutely committed to issuing epa regulations on power plants, which is 40 of americas carbon. Is there a race to finding alternative sources, being able to extract geo gas in a safe extracte velocity shale gas in a safe way, and the velocity of Global Warming . Is there someway to find that before Global Warming exercises a serious impact beyond where it is now . There is a race, a race against time to deploy maximum solar, deployed maximum wind is anything holding back the deployment of those two . Yes. Take for example florida. Have more than one company putting solar panels on peoples homes, the company pays for it. And you get a contract to buy electricity for less than the utility would sell it to you. That Business Model is not allowed in florida. We need to clear away the thicket that is impeding the market is it not cleared away because of the power of the Energy Companies lobbying . Yes, that is a big reason. You can watch the full interview with fred krupp tonight, only on Bloomberg Television. Coming up, the fall tv lineup. We look at the Key Takeaways from the up fronts and find out which network has the most to gain. Stay with us. We continue in just a moment. It is time for todays latin america report. Capes centralbank borrowing costs unchanged for the second straight month. This as an inflation rates reach a fiveyear high and Economic Growth a near five year low. That is todays latin america report for this friday. 20140 14 tv upfront the tv upfront season is over. The Major Networks have unveiled their lineup for the fall and advertisers have sold an estimated 25 billion to push their products on those shows. Porter bibb is from mediatech capital partners. Glad to see you again. Always glad to be here. Will the advertisers get worth . Oneys it all depends on what you consider moneys worth. Advertising cost per thousand . The rates that they pay for each viewer went up about 4. 5 , 5 . Fewer show went down. There are fewer eyeballs. There. Money is the viewers are disappearing. I think this is a watershed moment for Network Television. It seems counterintuitive. If the viewership is down, out of the networks recoup the ad dollars if no one is watching . There is a little bit of they have exercised this for the veral years. Right now, the internet and Digital Advertising exceeded the volume of Television Network advertising for the first time in history. It did in the united states. It did in the u. K. It did in canada. Is that the watershed moment . Yes, it is the beginning of the sunset for television. What will that mean for future up fronts question mark this was not a huge extravaganza the way up fronts were in the past. It was rivaled by the Cable Networks and something that google and microsoft and the Digital Content providers put together. Ok, lets talk about the up fronts. Any surprises . The big surprises, less comedy. The thursday night comedy block, cbs is running away with that. Thursday night football will be a huge home run for cbs. Its interesting. Cbs has extended their legacy going tos, ncis, new orleans. The networks of come up with, i think, rather desperate efforts audiencee a younger that is evacuating television in droves. They have programs like which, battle creek, than skill again is putting together, and situation comedies marble andll of the d. C. Comic characters. Mtv, thursday night, as you know, as prime real estate. That is where a lot of really good shows advertisers, movie advertisers, a lot of the auto advertisers zero win on thursday night. Thursday night cbs, as you mentioned. Is net tv the new template is even tv the new template . The new template . Event tv has been. Or 30 they5 watch it three days after the rock asterisk that is hard to measure and it does not get the impact to the advertisers. Sure. When you are on facebook, who cares whats on tv. Porter bibb, we will ask you to stick around through the break. The managing partner of mediatech. More on the up fronts when bottom line continues in just a moment. We are back with porter bibb, managing order of Corporate Finance at mediatech capital partners. Were talking about the tv upfronts, the advertising be networks the networks are battling to advertisers in new york city. Are rebuildingcs the miniseries. It was really popular in the 1990s. Our viewers going to take the miniseries bait . They have to find the viewers. When abs when abc put roots had 71 Million People watching every segment of the show. Repeating it, remaking it, they will be likely if they get they will be lucky if they get 7 million this time around. There are just not the eyeballs watching Network Television anymore. Alternative programmers netflix, amazon, youtube they have shaken up the landscape and are competing against the broadcast networks. Podcasters have seen a two percent decline in viewers this year. Does the decline say more about the networks or the sheriffs in town . Its a little of both. It is the demographic shift. Anyone under 30 or 35 is watching less and less television. The average american is watching hours ofa half television every day. If you are under 35, you will not even be watching an hour of television. Is interesting. There was a time when your parents would be like, stop watching tv, get out of the out of the house. They are watching it of their own choosing. They are watching it in binge, they are watching it with her friends on social networks. Which network is the most to gain . The Number One Network has been for the last several years, cbs. They have the most going for them this year. They have the strongest lineup of shows. No doubt. Any shows you are looking for . My favorites is an abc show they borrowed drum a per zillion from a brazilian telenovella. Woman is artificially inseminated and thinks she may be the virgin mary. Im not kidding at all. Television. T they are bringing back the music man from broadway. They are doing roots. Ad then skill can has miniseries that is going to be a big, big hit. I would be remiss if i did not bring up margaret walters. She is retiring. Does that mean the end of the walters. Ing up barbara she is retiring. Does that mean the end of the big get interview . Times said yes. She brought viewers. Her viewer with mono low Monica Lewinsky got well over 50 million. She could not repeat that anymore because the Television Audiences fragmented. The big interviews are gone. There is a Wonderful Program coming up, i think, on nbc called that is where the interviews have gone. Joining us here in studio. Good to see you. Thank you, mark. Stay with us. Another check of the Market Movers on the other side of the break. Bottom line on Bloomberg Television continues in just a moment. At the latest headlines at the top of the hour on Bloomberg Radio and streaming on your tablet and don bloomberg. Com and on bloomberg. Com. That does it for bottom line. Im Mark Crumpton reporting from new york. Thank you very much for joining us. On the markets is next. Have a great weekend. Bloomberg television is indeed on the markets. Lets look at where stocks are trading. We were slightly in the red. Now we are slightly in the green. There is more action going on in india. The indian rupee reached an 11 month high following the historic election. The indian etf also surged on the election results, which were a big win. The new Prime Minister will team up with central bankers to take years ofcountry after slow growth. We have a look at etfs that are best positioned for the new regime. Really this is a huge change in indias politics in the nation after decades of a Family Dynasty essentially having control. Course, you can play it with a general indian etf, but you have some that are more nuanced and targeted. Talk me through this. Sure. The large cap indian etfs are great. If you want to go completely outside into something very targeted for this actual election, check out the market vectors indias small cap. Small cap is closer to the ground. These are more isolated, more dependent on the local economy, domestic demand, infrastructure. That is exactly what they are going for. The infrastructure in india is awful. This is where the money will be spent. Theyve got to improve it. Investors are starting to flock into this to play this. Up six percent today. That speaks to the second etf, which is the infrastructure index. It looks at Indian Infrastructure Companies there are foreign firms that will get a crack at infrastructure in india, or will it be mostly indian firms . This one is just indian firms. People like that in international etfs. This one is very targeted. 30 stocks. This one will be a bit volatile. It is going to move because it is concentrated. Has had the formula to pop over six percent today. This one is up the most. Infrastructure is again a big thing. Finally, the rupee. Today. Oned this there is a way to play this with the etf . Sure, the indian rupee etf strategy the currency is up seven percent, but the yield is up eight percent because the shortterm yield is so high. The Prime Minister is raising rates to control inflation. It should do well, given his motive to do that. This is probably a safe play if you want to go with the currency. I imagine that one also had a good reaction today. On what is5 based happening in india. Really good stuff. We are out of time. We will get to gold next week. This is an interesting one. We will talk about this next week with eric. For now we are out of time. Street smart is next. A roller coaster week for stocks after backtoback and store closures wall street. The dow reported its worst week in more than a month. This is street smart. Welcome to the most important hour of the session, 59 minutes left until the closing bell. The verizon and whacking bandwagon, Berkshire Hathaway s
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