Individual investors are entering the equity markets. At the airshow. We begin with Phil Mattingly and citigroup 7 billion agreement to resolve a Mortgage Securities investigation. Good afternoon. Just hours away from filing a civil suit against citigroup, the Justice Department settled for a record fine of 4 billion, double was extracted from Jpmorgan Chase last year. This is the latest and settlement, part of the series we have seen over the past couple of months. As part of the settlement, citigroup will pay out 500 million for the state attorney general and fdic to address investor claims and add 2. 5 billion for consumer relief. That will includes principal reduction. The Justice Department made clear this is far from the past last major settlement they plan on reaching. Eric holder has been under pressure to bring financial crisis cases. Do these mollify critics at all . Not entirely. Are of the reason is they civil, not criminal penalties. That said, inside the Justice Department there is hope ease high dollar figures are having more and affect than people realize. Something the attorney general hinted that today in washington. I would think shareholders would ask questions of the leadership of the banks, the leadership of the banks need to ask questions about themselves and the practices they engaged in. I would think there is a deterrent impact from the very historic settlements we have worked out. Not ceos and handcuffs. Justice Department Officials believe there is a real impact to the settlements. What about the banks . How did they fare today . There is something to be said for getting this outoftheway of the way, and citigroup is no exception. At one point there in four percent. Getting this off the table ceo eiko corbett clearing uncertainty away. Once and for all, moving this out of the realm investors had to look at. There are no shortage of wall going on across washington for getting this outoftheway is an important step forward. Investors are looking at a kindly today. Full mattingly joining us from washington, thank you. Lyft heads to court today. Phil mattingly. General ericrney schneiderman is pulling all the stops to keep the cars off the road. Matt miller joins me now with the exclusive details. They hads right, planned on launching friday at 7 00, but the problem started last week when the department of Financial Services and attorney general contact the company tuesday saying it was not happy with the way they were providing its drivers insurance. Number one, making the insurance above and beyond what drivers are using personally, excess liability coverage. Number two, they accused them of selling the drivers insurance and from only one vendor, so not offering choice. The company says it is now going to give all of its drivers insurance as a primary insurance thomas and not above and beyond what they use personally but to begin with. Also, that it does not charge them were sell them anything. You are automatically driving on the insurance policy. They get these details thursday but friday morning Eric Schneiderman still filed under order with the court to try to an injunction. The attorney general announced it had the injunction, although it did not. Instead to wait to launch the service until tonight and the hearing starts at about half an hour. What is holding them back as far as the new york taxi and limousine and commission is concerned . It actually seems to be a lot more cooperative. They have to operate or drivers have to operate from single base stations. Fleets come from one race station. They would like the drivers to do the same, although it is much more difficult since they offer their own vehicles, usually out of their own homes. They are operating with the tlc to try to do that. On the other hand, Eric Schneiderman did not even call back or a meeting alice planned friday, did not show up for the meeting, and in the statement, Eric Schneiderman said they think they can waltz right into new york city. I do not know if anyone has been accused of waltzing by the attorney generals office. Does not seem like he is very happy with them. We will continue to follow the story. The start of traction at the air show is a noshow, the s35 fighter was supposed to make its international debut. 35 but it is grounded in the United States after an engine fire. Peter cook has more. How big of a setback is this . The timing certainly not great, not the kind of Public RelationsLockheed Martin was hoping for. This was supposed to be an international Comingout Party of sorts, the chance to showcase the plane on the International Stage and instead that the headlines are all about how it is missing in action. The good news, the engine issue may not be as big of an issue as feared just a few days ago. Pentagon officials said they have not figured out what has happened. No signs of problems within the fleet. That is significant within Lockheed Martin. Certainly disappointed not here today. Strongly supported the government Decision Makers that are doing the safety evaluations. So you do not know what the future brings. Shape. Ne is in good we have delivered over 100 to the government customers. The pentagon still not letting the plane back to merit this point and that tells you how seriously they are taking the issue. This is a 400 billion dollar investment, the most expensive Weapons Program of any kind. It has had its problems. An engine issue. The pentagon wants to be especially careful. There is a chance it could make it by the end of the week if they get the green light from the pentagon. The head of the program says they are perched and ready to go if they get the greenlight. Still possible to make it there by the end of the week if they get clarence. Any sign the engine problem is affecting sales . Lockheed martin says not yet. No information it is translating to a did this ministry this minister met diminishment on foreign stage. Perfect moment for the plane to strut its stuff. You have to remember, a lot of countries have made commitments to buy the plane over time but not firm commitments, no money on the table. This would have been an opportunity. Get the firm dollar commitments. To decide themark next few weeks whether they will buy the f35. So much. Brazil moves from hosting the world cup to hosting the sixth annual ricks summit. Bricks summit. On tuesday we focus on johnson johnson. An inside look at the challenges and exclusive interview with the ceo. That is all day tomorrow only on bloomberg. On the 2014 campaign trail, republican candidates with mds are trading suit jackets for lab coat in ads attacking obamacare. Were in washington with more on the strategy. It does not come as much of a surprise either. We saw this after 9 11 when political candidates with military background showed up in uniform. These days the wardrobe du jour is white coats and scrubs. You see it in all three commercials. Monica webby. Hoping to unseat jeff merkley. Her campaign message, stress me and killed the Affordable Care act. Likes it is not brain surgery, obamacare is bad for oregon. As a pediatric neurosurgeon, i know firsthand how devastating obamacare is for oregon family and patience. That is why i am the only candidate for senator less fought to stop it. She is not alone either in profession or ideology. Almost all of the candidates counting the background are republicans all running on a platform of repealing and replacing the health care law. To make that happen, republicans need to snag a net gain of six feet and senate to control congress. 53 of americans oppose the Affordable Care act. Only 32 say the law should be repealed. 56 say they want to keep it with only small modifications. You see an urgency on part of the Republican Party to do something about it before americans become even more accepting of the law. Strategists are hoping the messaging works and the number were the numbers seem to support that. Nurses and doctors among the highest rank in the profession of honesty standards. Politicians and lobbyists ranked dead last. No surprise there. Suddenly the white coat little advertisement wardrobe makes perfect sense. The sixth annual bricks summit scheduled in brazil this week. Topping the agenda, creating a new Development Bank and reserve fund for member countries. Geoffrey dennis ahead of global merging margaret strategy in boston. Welcome. Thank you for your time today. Thank you. Bricks are expected to create a 50 billion bank. Are these measures enough to boost growth . To be honest, i do not think they have much impact on growth. I think these are small, relatively minor innovations. I think they are an attempt to increase the relevance of the bricks that have suffered in the past three or four years from disappointing growth performance in disappointing stock market performance. I think the structural issues that all of them face are more than can be solved i the creation of a reserve fund, especially if most of them are in good shape in terms of the external accounts. Therefore, we are not sure a reserve fund is needed. You just talked about disappointing growth. The median estimate shows Economic Growth in the bricks countries projected to average 5. 37 this year, half the pace seen in seven years ago. Why the dropoff . I think unfortunately we have to look at almost every one of these separately. Still, the five percent plus number is better than the. Mergingmarket average both china and india are in structural slowdowns from superhigh growth rates in china at 10 several years in a row and india around nine percent. Both slowing sharply, albeit for different reasons. Result growing no more than one percent this year, which is shockingly low. Problemsart of their inside the economy of high inflation and low Interest Rates slowdown in the commodity boom, which is so important during the last cycle. Russia dealing with a number of structural issues as well. Crisis forand the companies to invest in russia. In a lot of different factors going on. Why havent these countries been able to pursue a common agenda . They were not able to agree on a candidate to head the imf three years ago. I think it is because it is an economic label. Label as opposed to be a combination of companies that have the same geopolitical or macro economic. Very geographically diverse. One in europe and one in latin america. They are in some sense effort economies. Russia and brazil being more moderate he driven. In which theyenas function politically are very different. Therefore, i think this explains the ability to really agree on everything. Bank, will he get the legislative approval it needs to be implemented and what will it mean for countries like could presumably get higher returns on reserves than a cut from buying u. S. Treasuries . That is probably true. I think that might be one possible consequence of it. I really do not think there is a lot of need for the reserve fund because all four of the countries have very strong Foreign Exchange reserve positions. If this is an attempt to find another investment vehicle, fair enough, but it is a rather clumsy way of doing that. I think much more interesting would be to create a Development Fund for channeling resources, more resources to Infrastructure Projects that are desperately needed by all four of the countries. I would rather see a fund more like the world bank and the imf. I am not sure what the major focus will be. I would consider that to be disappointing. Joining us from boston. Mr. Denis, thank you for your time and perspective. We appreciate it. Up next, mainstream and wall street moving in opposite directions. We will tell you why professionals are moving out of the equity markets as individual investors are jumping in. Julie hyman has details and rereturn in a moment. Not for the first time wall street and main street are heading in opposite directions just as individual investors returned to the stock market. Toategists predicting an end the runaway games. Joining me is julie hyman. The sign that Retail Investors are coming back. Is that possible . Looking at fund flows. Looking at mutual fund flows and etf flows. In the past 12 months 100 billion dollars have come into the equity markets, more than 10 times the amount of the prior 12 months. Months it has been up and down. It has amounted to 100 billion overall. It is at the end of the big rally we have seen. Going all the way back to march of 2009 when the market had its bottom. We have had enormous gains. After the trauma of the financial crisis, Retail Investors are saying i want a little bit of that. It is while Institutional Investors were having their way. They are still having their way to some extent. Not i say strategists are looking for anymore runaway games, most are expecting the s p 500 will and pretty much where they are today. 1978,erage strategists is pretty much where it is today. Always some that are more optimistic and pessimistic, but they are just not looking for a lot more is juice in this rally. Snp of just under seven percent. s as always, depends who you ask. This old market is older than most and this time. To extend for months. A year longer than average going back to 1962 and according to birini and associates. He thinks we want and the year at 2100. That would be encouraging for the Retail Investors. He said look at the four phases and we are in the last phase but not all the way at the end. Between wall street and main street, who is right . You look at history and saw a lot of investment on the part of every tale investments. Retail investments. If you go back to 1999, half of the time the average wall street forecast for the s p 500 is off by 10 or more. Both of them are right and both of them are wrong. Lex julie hyman. Thank you. 26 minutes past the hour. Bloomberg is on the markets. Matt miller joins me with the details. Caught up on where the markets are trading. A strong open this morning and still up five percent. Dow jones adding 118 points at 17,062. A couple of the individual stocks were watching. Linkedin, professional networking site buying news lead, a start up that highlights news about people and the users network. The terms do not have disclosure. For have received funding bloomberg beta, backed by the Parent Company of the station. Also giving an ion soda stream and the maker of doityourself soda stream watching its shares slide to the lowest price in over two years. More after this. Welcome back to the second line. Iof bottom am Mark Crumpton in new york. Time now for the commodities report. Sue keenan with the details. A quiet day for oil. Takes its biggest humble been almost seven months. Lets start with gold, falling as concerned about portuguese thanking die down. After initially creating safe haven demand for gold and other metals, the 10 year government bonds set for the biggest twoday rally in a month. That added pressure on gold. A lot of people were looking at portugal as a domino effect. As we saw, did not have a significant impact. Gold fell more than two percent, making it the biggest loss for most active contract since december. Looking at closedown of 2. 2 five percent. The drop comes after gold cap the longest run of weekly gain since 2011 come up partly due to the boost form from portugal. Out with the new note from goldman sachs, reiterating the gold prices. Competent increasing in economic recovery. Also things inflation will remain painful. A fiven also forecasting percent drop by the fourth quarter. In time, traders managed to reverse the big drop in foreign. Cornrlier today we saw futures falling to a fouryear low on ample supplies. And supportp veteran of crop futures. So much supply the crop looks phenomenal. All of that has crop prices remaining week. Managing to post again. The lowest price since july 2010. Wheat is the biggest gainer. Rising better than two percent. Copy futures end of the biggest winner as well, up i almost the same amount, better than two percent. U. S. Schools face the fallout from the Immigration Reform impasse while politicians are spending the summer riding over how to six or secure u. S. Borders, school struggling to secure or than 40,000 unaccompanied minors who crossed into the united state since october and released into the care of relatives. For more on this story, i am joined by our reporter in new york and an expert in washington. Thank you for joining us. You have the story. Out that walton point schools are often childrens initial point of contact with society. How difficult is the entry points, particularly for kids who do not speak english. Districtsk to school catch across the country who are dealing this for increasing for thingsanslation like mayan who may not be at a fixed five. These goals have to educate them while we are here. Lets talk about resources. Figure that 40,000 is equivalent to the student population in my hometown in the work, new jersey. Are there enough resources to give migrant student stability and the capacity to learn . Resources are a huge issue when it comes to challenges such as this one. Ons is hall all hands deck type of situation. One point in time with the School District and city and Different Social Networks can come together to meet the immediate needs of the students. This is that point in time. There are examples of schools that have done a tremendous job of meeting the needs of migrant student. I would suggest this is the time to really learn from the best practices from some of the schools Like Community schools in texaslike those that have change the curriculum to meet the needs of students and what sorts of social service has come together to meet the immediate needs of the students. Is theng Important School is the safest and most stable setting for the students. A lot of stake a lot of stake and schools have a vague role in this debate. How much is the state . School districts are struggling to meet the demand. Fairfax county for example developed an entire new curriculum to help parents of these newly immigrated students. They may not have seen each other in years so there is problem at home. Are struggling to adapt. Are the districts getting relief from state and federal aid to go are they getting any types of grants from the federal or State Government . I talk to the houston School District two has gone additional money to deal with the influx of immigrant students and that shows you that this has been going on for some time. The surgeon immigrant children crossing alone started in 2011. This is kind of old news for schools at this point. They have been doing this. Lex talk to us about the challenges of getting migrant students up to grade level . Depended on the age, a lot of them speak english. The first challenge is to teach them english. They realize the opportunities available to them in the United States. They are highly motivated. It is important for the school to realize even though the they do not speak english very well and have confronted challenges, that at this point in time they have students that are ready, willing and able to learn and important for adults to take on the challenge and meet needs wherever they are at. This is a personal story for you. Tell us about your own journey . I am an immigrant of course. My situation is very different in that i came with my parents to the country and have the support of both of them through high school and i spoke english already. I firmly believe that is where learning english is a gateway for everything they do and we should not allow the circumstances for which they came to the country to slow down the commitment to teaching the students as fast as possible. How has this intensify the immigration debate in washington . Politicians need to Pay Attention to the fact that immunities, cities and towns that they represent, they already have the fallout of the order turmoil and turmoil and latin america. So they need to provide the support. Certainly School District and Community Leaders there would say we need help to me the resources to be able to take care of the kids because they are here, what else will we do . The story is on the bloomberg terminal. Thank you. National alliance for Public Charter School staying with us. We will look at the importance of teaching students how to manage money. That is next. Federal reserve chair janet yellen will deliver her semiannual testimony before the Senate Banking committee tuesday. We will have live coverage beginning at 10 00 washington time on market makers. Also tomorrow, catherine mann, professor of Business School and bloomberg you contributor will join us from boston with analysis. At a recent conference focusing on pension and retirement, arne duncan says Financial Literacy should be a staple of the American Education system. For publicliance Charter School nina rees back with us. States requireof Financial Literacy be taught. Why . This is quite unfortunate because a sound Financial Literacy curriculum is the gateway to getting a lot of students interested in math. Years ago it 30 was probably ok for schools not to teach about Financial Literacy but nowadays with more and more students seeking Financial Aid after they graduate from high school and the state of the current retirement system, i think it is more imperative now than ever before for students to learn the basics of Financial Literacy at an early age. The organization for Economic Cooperation and development is out with a report that analyzed financial knowledge among 15yearolds in 18 countries including the United States. American teenagers placed on placed ninth and were below the average in basic proficiency. Are you surprised by the numbers . It is alarming, but as i said earlier, as you start to introduce the concept at an early age by teaching literacy through math, you would get a lot of students very interested in math, and a lot of schools i have visited at her focus on Financial Literacy are seeing an uptake. There was a six week long Financial Literacy course they offer him and as a result, the test scores have thought have sky rocketed a result. The other side reality is when you look at the tests administered come a one in six students are currently not able to do some of the basic things that you need to teach students when it comes to balancing the ofck book and the basics Financial Literacy and only one in 10 can do more sophisticated work. What a shameful is you can start by teaching students the basics at a very early age and bring some of the basic concepts of math to life through Financial Literacy. You talked about Charter Schools offering Financial Literacy. How is the going . Progress . Terrific. As a result the test scores in 2012 skyrocketed and another and other programs doing quite well. The states have already incorporated Financial Literacy in the curriculum. Again, nothing stopping more states to take on the opportunity. I now a lot of Resources Available to families in the before and after school space and Summer Learning space to make sure theyre drilling the concept that an early age. If a student is strong in math, will the Financial Literacy component naturally follow . Absolutely. I also thinklier, teaching Financial Literacy is one way to bring math to life. With a lot of younger kids am a we would have a hard time figuring out fractions and decimals and these types of other math problems and what they mean to them. Introducing Financial Literacy is one way to make them more interested in math. The two things you need is a solid understanding of mass and solid understanding of reading. We have about 30 seconds left. Should Financial Literacy be a graduation requirement . It isin, i think imperative for every child to know Financial Literacy before they tap into any kind of college loan, and i think nowadays with only a third of the employees having 1000 in savings in their bank account is more important than ever before for everyone to understand the basics. States toly up to the whether it should be mandated. The oecd result in the fax we just raised really should be enough of a boost to get lawmakers to focus on the issue. The ceo of the National Alliance alliance for Public Charter Schools, thank you for your time. Appreciate it. Time for todays latin america report. Sundays the three for germany came as a relief for the host country brazil which sent 11 billion on the tournament. Resilient supported germany despite the semi final boss because they did not want the regional rival argentina winning. Germany now the favorite for the next world cup in russia in 2018. William hill set odds of 51 for the germans to repeat. That means a successful one dollar bet would return five dollars and the original stake. We are now less than three weeks less than three weeks before argentina risks default. Meeting separately with a quite Court Appointed mediator in manhattan. Argentina has until july 30 to make a payment on performing bonds, which it cannot do before settling or default for the second time in 13 years. That is your latin america report for your monday. Of next, known as the king. Not all this and not lebron. Considered one of the most influential comic artist of all time, creating captain america, thor, and iron man. Now his heirs are in a court battle that may wind up at the u. S. Supreme court. We will tell you why when continue in just a moment. Could spiderman be headed to the u. S. Supreme court. That help to create most of the bestknown superheroes are in a league are in a fight to control this. Some of the bestknown characters and the comics universe, captain america, thor,ible hulk, mighty iron man and spiderman were cocreated by the king of comics, jack kirby. He never own the copyright to the characters he drew, his employer does, marble. Many debuted between 1958 in 19 63 when they have little bargaining power. Then Congress Passed a law in 1976 allowing creators to reclaim the rights to their work after a. Of time. He died in 1994 but now his family is suing to get the copyright under the 1976 law. What is at stake . Money. Potentially a lot of it. 2004y acquired them in four 4 billion and got the right to all the characters. This led to movies like the avengers. Collectively they made 4 million more dollars of the box office alone. The estate has asterisk Supreme Court to hear the case. It hinges on something called works made for hire. The copyright the lungs to the arthur author who created it. They contend they have the right to terminate the copyright because of the 1970 six law. The court should decide whether or not to take the case in september. If they take the case and rules in the favor, the family could be entitled to some of those superhero rights. Stay with us. Another check of the Market Movers is on the other side of the break. Get the latest headlines at the top of the hour on Bloomberg Radio and streaming on your tablet and at bloomberg. Com. This doesnt for this edition of btottom line. On the markets with matt miller is up next. I will see you tomorrow. Work minutes past the hour which means bloomberg is not the markets. Quick check on where stocks are trading at this hour after a strong open we continue to see gains across the board with the s p 500 up half a percent. Dow jones adding 121 points. The nasdaq up about two thirds of one percent. Partnerships, a that governs Alibaba Group strength ring strengthening the grip over what could be the largest ups ipo of all time. To more on the battle control the internet giant, i am joined by leslie picker does. First of all, we should say this company not having many problems, not hitting any road marks when it roadblocks when it comes to getting this approved in washington, right . There was speculation there would be backlash from regulators. There was a congressional report that came out warning investors against entities fractures. The entity that enables investors to invest in a contract instead of the actual company. However, it seems to be, according to our sources, and is flying through without many hurdles and revisions in questions. An indication that they have done a nice job in answering questions the sec would have had. Story is as this concerned, who is this group, and why do they get the power to expand the board without the approval of the rest of the shareholders . This partnership is a really important part. It is unique. It is in between one share one vote and dual class structures like you will see with facebook and multiple class structures at google. This is unique structure that gives 27 individuals more than overall shareholders without doing separate classes of shares. The partnership, what this enables them to do is nominate a majority of the board, which is then voted on by common shareholders. Ask weeks provision showed they can actually a point more erectors to the board to get to a majority if they do not already have it. Currently there are nine directors. Four of them nominated by the partnership. It said after the ipo they could theoretically add more nominations to the board. It will not stop people from being excited about the ipo . The biggest ipo in the history of the u. S. What about a paypal kind of unit . Clarified theand relationship of that unit. The ipo is another unique thing. Clarified this doesnt that it was considered too competitive with the chinese owned banks. They did best in divested. Yahoo andt alert other shareholders until after the fact. There has been discussion a might reclaim that property, that they might buy back assets and include it. This would happen after the ipo would it but would increase valuations. Something that will not happen before the ipo but one thing to keep in mind. Investing in chinese companies, never easy but Everyone Wants to do it. Thank you very much. On the markets again in 30 minutes. Stay with us. We got stocks rallying today. Season is in full slaying. Im trish regan. Street smart starts now. Welcome, everyone, to the most important hour of the session. 59 minutes to go until the closing bell. Time is running out for donald sterling. We will speak with his new law your