We have the latest details in the minimum wage of eight. Julie hyman checks the takeover battle for hill shy your brands. To president r ofin accuses the u. S. Bringing a war through proxies. Prorussian rebels shut down the Ukrainian Military helicopter, killing at least 14 soldiers, including a general. Ukrainian Officials Say the mi8 transport chopper was brought down with the missile. Heavy fighting continued in slow vans could in slovansk. At a Ukrainian Military base reportedly came under attack. Get more from our reporter in washington. How much of a low is this to the Ukrainian Military . It is significant here day one dayss of life in for ukrainian forces, 13 troops and one general. They were shot down by prorussian rebel separatists using a Russian Rocket propelled grenade. That adds insult to the deaths there. And this is happening at the same time that the president elect of ukraine has been vowing to crack down on separatists in eastern ukraine. On the other side, use the russian authorities, including Vladimir Putin, insisting it will be hard to do business with shenko if he does not hold back. They are aiding separatists at this point. We have seen all of that happen, and at the same time, we have got an advisor to Vladimir Putin saying that the United States, who is basically in charge of the ukrainian government, is trying to push the world toward world war iii, which is clearly not how the United States sees it. This is coming at a time that the pentagon is saying that even though russia has withdrawn some of its troops from the border, there are still as many there who are battleready and can create problems. The war of words is still flaring. But we saw the European Union moreback from putting on sanctions this week. President obama has declared the ukraine policy a success. Is the worse really over . That is the big question. I think the european leaders will believe when they went into the summit on tuesday to say that russia did not interfere with the election, they accepted the results, therefore we do not have to impose sanctions. Examplea used it as an in his speech yesterday at west point when he said the u. S. Had the ability to shape World Opinion and that it was because of this that russia was isolated in sanctions were put on. Of course, that is still a question. We do not know what will happen in the coming days and if russia will decide to fairly negotiate with poroshenko or if it will continue turning up the heat on him. What is the likelihood that gazprom is going to cut off the spigot to ukraine . That is a huge question that is looming at the backdrop. At the end of this month, there were supposed to be a deal between gazprom to have a new price with ukraine. The problem is that ukraine has refused to accept the higher price. The russians raised the price some 81 . The European Union is trying to negotiate a deal between the two sites. No agreement has been made yet, so it looks entirely possible that if something does not happen at the 11th hour, gazprom could actually get off the gas. That would affect not only ukraine but also the europeans down the line of those pipelines who get half of the russian gas via ukraine. Absolutely, and the question we were hoping to post to the Ukrainian Ambassador to the yard dash to the United States, but unfortunately he was not able to join us because of illness. President putin is he taking steps to insulate himself against possible future sanctions right now . Actually, just today in kaz ckstan, we sawaza putin signed an agreement. It includes russia, belarus, and kazakhstan. Could end of the year, it include other states. It was the former president ninkovich who said he would join this union. That was once he backed away from the European Union that all of these protests started last november that led to this crisis. There are the russians on the one hand trying to have their theblocs as a rival to European Union. Ukrainian government signed a political agreement with the eu, but theyre holding off on a trade deal. It remains to be seen whether russia will actually allow the ukrainian student have a sort of trade union with the European Union. Remember, at one point before the tensions started, Vladimir Putin said he wanted a trade pacific. Lisbon to the i think that is off the cards for now. Certainly he is trying to back himself up and have some other alternatives if the eu sanctions go through eventually. Are laxman on in washington, thank you. It may be internationally recognized as part of ukraine, but right here but crimea postand postannexation is starting to feel very russian. Ryan chilcote visited crimea to find out what life is now like in the region. The trouble with crimea starts with getting their. Narrowest point, a twomile body of water separates it from russia. Roads which go through ukraine are all but closed. Thehe only way to get from russian mainland to the Crimean Peninsula over here is to take this boat across the strait, until russia builds a bridge that it is planning on that spans the distance. No need foraine, passport. As far as they are concerned, this is a domestic crossing. The since russia annexed syria, crimeans have been somewhat stuck your new passports can take weeks. The old ones are not very helpful. The ukrainians are not allowing men between the ages of 18 and 60 into ukraine, even with ukrainian passports. They call us terrorists. Ukrainian and foreign banks have all closed for my while many have yet to open from russia. Cash machines and credit cards do not work. Even in the cradle of russian orthodoxy, prices are quoted first in ukrainian money with russian in small print. Doing business in the contested region is easy and potentially illegal. Golden arches and much more stand deserted. Tourists face obstacles. To visit the place where the allies met in 1945, world war ii buffs, now travel to russia. You couple months ago, could come here without a visa. Now that it is under moscow control, not anymore. There was not any unrest while we were in crimea. But russia is clearly concerned there could be. Regions Muslim Minority was banned. Russias newest Tourist Destination is breathtaking. Just beneath the surface, there are problems. Ukrainians cut the water supply. Further inland, theyre expecting drought. The most crimeans say even with all the trouble, it is a price worth paying. Bloomberg, crimea. Least one major u. S. City is answering fast food workers calls for higher wages. Seattle is considering a landmark 15 minimum wage. That story when bottom line continues. Welcome back. Ons is bottom line Bloomberg Television and streaming on your tablet, phone, and bloomberg. Com. This week on Political Capital with al hunt, House Minority leader nancy pelosi and republican congressman from illinois will speak about the benghazi investigation. The congressman is a member of the house benghazi panel. Political capital, tomorrow night at 9 00 am washington time, right here on Bloomberg Television. In washington, pressure grows on the v. A. Secretary, Eric Shinseki, to step down over the growing scandal into delayed medical care for veterans. But not everyone says shinseki needs to go. Our chief washington pours on the dutch correspondent has the latest. Peter, secretary shinseki still has the support of the white house. He does have the support of the white house, but it seems clear from the latest White House Briefing that perhaps that support may be starting to fade. Jay carney asked in the last few minutes about this latest interim report on the v. A. Inspector general, finding systemic mismanagement within the v. A. And the issue of delayed care, not just at the phoenix hospital but other v. A. Hospitals around the country. Here is jay carney a moment ago when asked about accountability for this issue. Is,he question i ask myself is him resigning going to get us to the bottom of the problem . Is it going to help us find out what is really going on . The answer i keep getting is no. The real issue here is that the president is the one should who should be held accountable. That was the speaker of the house, john boehner, asking the same question, should Eric Shinseki go . The House Speaker stopping short of saying shinseki needs to go, unlike many of his republican colleagues, including even some of his democratic colleagues here in congress. The controversy continues. Nancy pelosi, the top democrat in the house, she is not calling for shinseki to go, saying she wants more information to make a final decision on that. But this controversy grows. You have the interim report from the ig yesterday saying that there were some 1700 veterans on an unofficial waitlist at the phoenix hospital. The average waiting time for primary care at that hospital, roughly 20nd not the days or so that the v. A. Was previously reporting. A lot more in this investigation. The white house Still Standing by Eric Shinseki, but you have to wonder how long that will last. Talk about what is the next shoe to drop in this investigation. Were waiting for the white house internal investigation of what went on here, led by one of the president s top advisers. That might provide the president with more information so he can make a decision about leadership. He also have congress actively involved in this investigation. You heard from the Top Republican on the House Veterans Affairs committee. He is pressing for more information, including subpoenas him and he may even go to court to try to get the v. A. To turn over more details, more documents, not just about phoenix but other hospitals as well. This investigation is not over by a long shot. Cook, thank you. The nationwide battle over the minimum wage continues at this hour. A city at a Seattle City Council is leading to discuss the proposal for 15 an hour. Theave been following minimum wage debate from washington, d. C. Lets get more. What is going on in seattle . A big day in seattle. A big day for the fast food worker five. Seattles minimum Wage Committee is meeting to discuss the mayors proposal. Their considering wasting min wage to 15 dollars an hour, up from the minimum of 9. 32 an hour, to be phased in over seven years, at which point the ways will be adjusted for inflation. So far, we have not heard many dissenting voices on the nineperson panel, so theres not much suspense on the outcome. The mystery though is what will the Economic Impact be after the fact . University of washington estimates that in seattle, 102,000 workers him about one third of the working population, makes 15 or less. Proponents say the wage increase would put about half a billion extra spending dollars into that iss pocket and good for the economy. But that also comes at a direct cost to businesses paying those increased wages. As these things go, it is hard to predict exactly what will happen. But seattle will serve as an experiment and example to other cities and other states to look too. Todays vote comes as michigan, a republicancontrolled state, fromased to 9. 25 an hour 7. 40 an hour. There is 20 momentum in this minimum wage fight. Speaking of momentum, there are plenty of voices calling for 15 an hour. Hypothetically, what would the impact the should the federal minimum wage increase to 15 . That is a good question. You are right, there have been growing cries for 15 an hour. It is important that you said hypothetically, because that looks to be rather unlikely right now, so unlikely that there are not very many estimates out there on what the 15 impact would be on a federal wage. But the bureau of labour statistics and 2013 says 3. 3 million americans earned exactly the federal minimum wage of 7. 25 an hour. We have a study on what is being proposed by the senate in the white house, study from the Economic Policy institute that calculates that about 30 million americans would be affected should the minimum wage increase to 10. 10. T would mean about 24 2400 in additional annual income, which comes to a whopping 51. 5 billion in total wage increases throughout the country. That translates to a cost to businesses paying those wages, and that population is just for 10. 10 an hour, something not happening anytime soon. All right, thank you. Still ahead, tyson foods makes a bid for hillside or brands. The maker of jimmy dean sausage and ballpark hotdogs. Details on the offer when we continue in just a moment. Recalling about 915,000 escaped and mercury miracle mariner vehicles in north america because of the potential problem within the steering column. The problem may result in the loss of electric power steering while driving, which could cause increased risk of crash. The recall include certain 2008 2011 models built of the kansas city is simply planned. We have a bidding war and the sausage business. Tyson foods made a 6. 2 billion offer for hill scheier brands, trumping pilgrims prides 5. 6 billion bid. That was not easy to say. Julie hyman is here. Why does everybody want hill hire . Er hills it is interesting. They own jimmy dean sausage and ballpark frank spirit we had seen at the margins in the processed meat business are higher than the fresh meat business, and chicken you buy at the store, for example. Theres that aspect. There is the attractiveness of some of the producers of owning the vertical. That is, all the way along the process, from the fresh meat then to the processed item and getting it into the source. All of these things are making it attractive. Protein is hot right now. It has been growing. Tyson talks about getting to the early part of the day, the breakfast part when people are eating sausages. Thise ceo of tyson said is a game changer to how we look at prepared foods. It would definitely increase their reliance on prepared foods. 18 of revenues from about nine percent from about 9 . 50 a share. Ring pilgrims pride offered 45 a share. Next move . Pilgrims they could raise the price. A person familiar with plans said they are considering doing that, but it is not clear yet if they are going to come up with a competing bid. Has anure hillshire agreement to buy pinnacle foods, fruits and vegetables. Both of these awful both of these offers are contingent upon hillshire abandoning that bid. They want hillshire. Shares, thatt indicates investors think a higher bid is coming because the shares are trading above the offer price. We should mention, this wasnt unsolicited bid. An unsolicited bid. It was. Morgan stanley as an advisor to tyson, and Morgan Stanley was working on a deal for jbs. That has been suspended, according to people familiar with the deal. A little bit of consequences for actions. All right, the pork wars. Thank you. 26 past the hour, bloomberg is on the markets. Matt miller has the details. Today,ing in the markets the fifth day that we have seen green on the board in the past six. The s p, the tao, and the nasdaq with some gains. S p up some 15 now. The nasdaq up more than. 3 . Individual movers we are watching the measures of softbank and sprint. The ceo of softbank is seeking the u. S. , for telecommunications company, and consolidating with sprint for access to about 50 million subscribers in the u. S. The Company Plans to upgrade its u. S. Networks. The ceo has made no secret in his interest in acquiring tmobile to challenge market leaders verizon and at t. Tmobile is owned by deutsche telekom. Rumors have been going on for about 15 years. On the markets again in 30 minutes. Welcome back to the second halfhour of bottomline line on Bloomberg Television. Im mark lambton in new york. Thanks for staying with us. Im Mark Crompton in new york. Thanks for staying with us. Sign the Residential Market in the u. S. Is stabilizing after a weak start to the year. The National Association of real tells of realtors says depending on sales rose 0. 4 . Another sign the labor market is getting stronger, there were fewer firsttime claims for jobless benefits than forecast. The fourweek average fell to its lowest level in 6. 5 years. And searchers say they have been looking in the wrong place for the malaysian jetliner that went missing in march. Teams will now take a threemonth break to figure out where to look next. Using robot survey submarines will resume over a wider 23,000 square mile area in august. The announcement of the latest setback in what is already the longest search Mention Mission of the passenger jet era. That is a look at top stories at this hour. It is time now for the commodities report. Stu keenan is standing by with details. Is standing by with details. Commodities are up today, the latest driver is big oil. Its highest output since 1986, but stockpiles in cushing, oklahoma, a key pushing Prices Higher. Gasoline also slipped while demand climbed to its highest since august. Which shouldong, push Prices Higher in the weeks ahead. We also have tornado damage to one of the biggest refineries in the country playing a shortterm role in higher prices. Meanwhile, a key delivery point is in focus. A focalwill remain point until we see a rebound in supply. Oday, it fell to its lowest the support by the ukraine traders say that is also supporting. Copy prices continue to provide a wakeup call. What is the story . Higher and higher prices as we close out trading. A big supplier to starbucks is putting saying that yield on its crop could drop as much as 40 because of the drought damage in brazil. Karen echo prices have been on a arabica a rabbit coffee prices have been on a tear. To thestart to add cocoa list. A lot of concern over complications in africa. With theenan commodities report. Coming up, Economic Growth in the United States slowed in the first quarter. We will take a closer look at the state of the economic recovery and get an outlook for the remainder of the year. You are watching bottom line on Bloomberg Television. Be sure to check out the latest edition of bloomberg businessweek. It hits newsstands and your tablet today. You can read it on the go with our new businessweek app. Welcome back. The u. S. Economy shrank for the first time in three years. Grows to mr. Product fell at an annualized rate of one percent in the first quarter. Rateell at an annualized of one percent in the first quarter. Chris, an economist, joins me in the studio. The first quarter, is it temporary or structural . But prettymporary, lousy when you look at it component by component. The only sector that looks decent is consumer spending, which grew 3. 1 . Why are consumers coming to the rescue . They are opening up their wallets now . Part of what we saw happen was a huge increase in healthcare spending with the Affordable Care act. Some of that is people who have insurance for the first time and they are getting medical services theyve probably delayed for ages. Ifers, though, it looks as costs have been shifted from companies to consumers, partly as a result of the law, but also companiesa result of taking advantage of the confusion to shift some of those costs. In a survey by bloomberg, for threegrowth calls percent growth for all of 2014. Is the Second Quarter and overly optimistic rejection echo projection . Realistic. Solutely a good way to think about it is to think about the two quarters together. Percent with four a one percent decline in the is a littlen 1. 5 slower than last year. Inwill already get a bounce most of the government statistics. And no spending cuts this year or tact hikes tax hikes this year, that will take some of the weight off of spending . I think it will account for at least some of the weakness. Again, growth last year was about two percent. Baseline, then this quarter was three percent weaker. I think it was reasonable to think that maybe half of that othere weather and the half was fundamentals. Inventory accumulation, has it slowed to the point where american factories are now in a position to increase production . Think what happened, room number the optimism of the second half of last year. Remember the optimism of the second half of last year. We had backtoback gdp growth that was the strongest two quarters in several years. That was overgrowth in inventory building. It is not sustainable. It was growing faster than the economy. The good news is, i think it will take about three quarters back tontory to get normal. We were actually under in the first quarter. That is one of the strengths for inventory to accelerate from there. And looking at corporate profits, earnings fell nine. 8 9. 8 last quarter. What are we looking at in corporate . , companiesom line are sitting on record cash. The expectation is that they will invest it. When you see earnings numbers like that, protecting the bottom line becomes essential. What we will see as a result is more stock buybacks, more mergers and acquisitions. The ultimate goal will be enhancing shareholder value. Chris, a separate report today showed applications for unemployment and if it fell by 20,000 in the last week. Does that counterbalance todays quarterly gdp numbers, which were disappointing . Disappointing as they were, we can already see secondquarter growth stronger. It is really interesting to see the claims held up as well as they did right through the first quarter, even when production was so very weak. I think what you are seeing there is that companies have built a buffer of temporary workers. It is now common practice to have a core group of permanent staff. If there is a Production Cut back you dont have to touch those people. They are safe. Instead, the group of temporary will adjust for fluctuations in demand. I think that is why claims are still so low. Chris, its good to see you again. Thanks for your time. Its time now for todays latin america report. Mexican authorities issued a an arrest warrant for the chief executive officer of a after a 400 million loan fraud. Is a hospital after undergoing emergency surgery last week. Oceanogrok control of afia after it made loans based on fraudulent invoices. U. S. Businesses in cuba are touring local efforts to create a more open economy. U. S. Chamber of commerce president Thomas Donahoe led the delegation, the first to visit the island since 1999. Toward and others auto plant. At keyo come, looking wars in cyberspace. Pepsico miss inside with exclusive interviews and access into the companys gatorade and Snacks Research development facilities. At 9 30 p. M. Ht eastern and pacific on Bloomberg Television. Publiclyited states accuses Chinese Military officers of organizing Cyber Attacks on corporate america, the first class of hacker officers write to it from west point this week. Here are her marks to crew to recruit new leaders in the cyber conflict. A game . Inay the movies, a young computer comes closeattle to starting a nuclear war. But these days, etc. Teenagers are being recruited to work for the u. S. Military rather than against it. And west point is one of the potential players. Theyat hackers and what bring can be a great strength. One of the countrys oldest institutionsodox is teaching them to think in very unorthodox ways. There are longterm underlying principles that will teach them how to think and solve problems. Cyber attacks on u. S. Infrastructure soared 1700 between 2009 and 2011. And in the midst of that list, the pentagon established a special group to defend america online. Then thelexander, and head of the nsa, was placed in charge of this cyber command. Withinly developing government branches instead of developing its own raw recruits. That is about to change. This years graduate in class of west point is the first. ,he west point hacking club which competes at schools like m. I. T. , means that they can compete with the brightest in their generation. Brighter than im the average person my age. These hills a oneday be skills may one b day be applied. We teach them to intercept at various points in time. Soldiers will still use machine guns, but some may also use mousepads. Google released its first inhouse self driving car. It has a top speed of 25 Miles Per Hour and does not have a Steering Wheel or accelerator or brake pedals. We started google about five division of how to make transportation better. On the road. Safety transportation in america is a wonderful thing. You can get from one place to another with amazing ease. But 33,000 people die every year. The biggest killer of teenagers. In fact, from the age four to 34, it is the latest leading cause of death. When you look at mobility, there are huge swaths of society that either lose the privilege or never had it. Lots of people have had conversation with elderly grandparents or parents where they need to take the keys away. These folks are left without the ability to interact with society. So there is in need. That is the need. Project we kick off the to initially see whether it was even feasible. That is only set to audacious goals. Drive 100was to ofes, which was an order magnitude that had never been done. The next was to drive 1000 miles of interesting roads. Instead of the freeway, go up along the mountains and the coast. And the idea was what . To prove the technology worked. Its the first time you could do this without touching the Steering Wheel or the brake pedal or gas pedal. And then we started to look where this could benefit people. We spent some time looking at freeway driving. We have a system that we lent out to about 140 google employees where they could use it to commute to and from work. It would drive itself there and then drive off. It was astounding. People loved it. One woman who had about an hour and a half commute. She never cooked and she never exercise. She used it for a week and she did not want to give it back. She cooked for her family every day and everyday, she exercised. It was amazing. But we also saw that it was hard for people to Pay Attention when they needed to. If it is working on the time, it does a really nice job. But then they would get distracted. They would trust it. Fororried about the ability people to stay attentive and reengage with driving. To our vision of helping everybody. We realize we could debug this attention problem and push harder on making the car work everywhere. About a year and a half ago, we refocused on that. You can watch more of charlie roses interview with googles chris remsen on the driverless car changing the way we look at transportation. That is at 8 00 and 10 p. M. Only on Bloomberg Television. Bottom line continues in just a moment. Get the latest headlines of the top of the hour on bloomberg radio, stringy on your tablet, and at bloomberg. Com. Oft does it for this edition bottom line on Bloomberg Television. On the markets is next. I will see you tomorrow. 56 past the hour means Bloomberg Television is on the market. Im matt miller. A look at stocks and you see a little bit of a rise in the last halfhour. The s p and nasdaq adding about 0. 1 apiece. The dow adding about 0. 4 . A huge deal out of two tents or three tens, but it was almost flat earlier. Or 0. 3, but it was almost flat earlier. Fitch is upand slightly, showing things began to be less bad. Aboutalways fun to talk these teen retailers, because the fashion is just ridiculous. But people keep writing it. But i guess, not as much, right . Absolutely, when you talk about fashion, teenagers want it. Has been the challenge. That is why teen retailers struggled in the past 18 months. It is a big deal when they go to revise their marketing message to get the team to shop again. Noticed, it looks like fast times at ridgemont high is being sold to everyone ages 15 to 21. Skinny jeans have come back. Bank on. Thank god. Fashion cycles come back. And how is air post out era postal . You have them saying theyre closing some stores, and then also american eagle, and now abercrombie saying they will close the source. What they have in common is that they have leases expiring in the next few years, which means more stores could potentially close. Most teenagers are not invested in the stock market, so they are not seeing the great gains given to the investing public by the fed. The upscale, luxury retailers are doing very well. Exactly right. The highend retailers, you can see them in their stock prices and their sales. They have been reaping the benefits of the stock market surge. Retailers with high and implement rate, i would not say they are not spending, because they are still buying the high tech gadgets, but they are not buying a lot of peril. There is nothing new to excite them with their wardrobe. Make public my knowledge of womens handbags and shoes. Michael kors, does it really get grouped with Louis Vuitton . No, its not quite the same. It is still mid tier luxury. It is definitely not highend. But it is in the middle. To use the phrase very loosely. Affordable luxury. Streetsmart is up next. I will see you there. We have the markets trying to hide climb higher. Many investors optimistic the economy will bounce back. Im trish regan. This is street smart. Welcome to the most important hour of the day. Tryingmania continues, to trump the bid for hill sharp brand. Apple makes its biggest acquisition