Matt miller examines General Motors latest troubles. Shelby holliday looks at Workplace Diversity in Silicon Valley. Lets begin in washington, where megan hughes has the latest on the Ebola Outbreak in west africa. That afternoon. Good afternoon. We have got updates on the two aid workers infected with ebola now being treated in the United States. The first ever treated on United States soil. One of the patients was well enough to walk into the hospital over the weekend. Goodamily reports he is in spirits. Writebol will be joining him tomorrow. Her condition is reportedly improving as well. The organization they work for a stout of north carolina, they are the ones that made the call to have them transferred back home to the United States. Emoryay the reason is university will be able to provide better care than the liberian hospital they were being treated at. It will be up to the department of defense and the cdc to handle the logistics and make sure the virus does not spread in the United States and that those transfers are done safely. What is being done to make sure it does not spread . First, the one thing youll hear from Health Officials over and over again throughout this crisis, they want people to realize how this disease, how this virus is transmitted. It is not contagious airborne. It is through bodily fluids. Persontoperson contact. Here is the World Health Organization spokesperson on that topic earlier today. Touch aneds to affected person, the person already showing symptoms, in order to contract the disease. To touch that person or the bodily fluids of that person. We can isolate u. S. Officials say hospital infection patrols in the United States are better than west africa. Makes it very unlikely we have a similar outbreak. The, number two asks question of these specific american patients. They are being transported in a specialized charter plane. It hasnt isolated unit. They are not flying commercial. They are being flown in a military airfield in atlanta. Emory, theet to hospital has a special unit set up in court nation with the cdc specifically for circumstances like this. Megan hughes, thank you. Heart of thet the Ebola Outbreak is liberia. The president canceled her pursuits her participation in the summit to handle a crisis. The countrysth Vice President , who is attending the summit instead. He warned people is becoming a serious threat to liberias economic crisis since the war ended in 2003. This is going to challenge all of our development agenda, it willstructure challenge all of the deals we have made since we have come to power. Liberia has called for a 100 billion pledge, calling it a reasonable start. Later in the broadcast, the u. S. Ambassador to ghana joins me to discuss efforts to strengthen u. S. Ties with africa. That is coming up in about 12 minutes. Lets now look at todays top business headlines. Julie hyman is standing by with the details. Warren buffett is having trouble finding good deals. Berkshire hathaway climbed past 6 million in june. It is the first time it climbed a quarter of of that level since he became chairman and chief executive four decades ago. Investors like to wait for the pitch, an opportunity to buy a company at a price, sing favorable returns. He is not seeing those opportunities in this market right now, especially not at might not at a size he be interested in. A second after buying International Strategy and investment group, isi. That will put the firm deeper into the equity is this. The Equity Research and trading specialization is not as profitable as Evercore Partners main business, advising on mergers and acquisitions. We are seeing those shares fall. Also putting pressure on them, issuing 8. 1 million shares to pay for the deal. Million based 406 on fridays close. Earnings reported, gross margins, it will be dropping in the time ending in march 2015, to invest in spansion. This is even after quarter revenue was up by 43 as the Company Continues to see growth in north america and around the globe. Will be taking a closer look at both companies tomorrow as well. Thank you so much. It has been a summer to forget for mary barra and her team at General Motors. News broke over the weekend of a deadly explosion at a gm supplier factory in china. Here at home, it was revealed a website designed to help gm motors check the status of vehicles was defective. What can mary barra do to turn gms look around . What can she do at this point . In the case of a tragic accident in china, there is nothing gm can do. Quite frankly, gm does not have a direct link to this factory. It was a warehouse that held equipment in order to polish and plate wheels, Aluminum Wheels that gm gets through another supplier. Supplied or polished the wheels for diecast oh, and then die costal sold them on to General Motors. Sparks in a dusty room ignited flammable substances, killing at people. It is an industrial accident that is more a problem of the chinese. Overnment theyre willing to help out in any way they can. That said, they have had issues, and it is not looking to get any better. Keepthough the sales increasing, mary barra will have to keep doing her job. Her Business Strategy is working quite well. She has real press issues now. What problem is gm having here at home . The website issue you mentioned. People who logged on their website to see of their vehicles were defective or hearing it was not if gm did not have the parts to fix a recall. That was fixed friday night. Now they are having an issue with the department of justice, which issued a subpoena for all their subprime loans since 2007. General motors have the biggest subprime lending unit of any carmaker. Matt miller joining us in the studio. Thanks so much. Coming up, by 2040, the workforce in africa will be larger than that of china and india. We will look at the challenges and opportunities of doing business on the african continent when bottom line on blooper television continues in just a moment. On Bloomberg Television continues in just a moment. When people think of somalia, they often think of pirates. The governments leader says the pirates are mostly gone and the economy is growing. Bloombergs International Correspondent hans nichols sat down with the somalian president at the u. S. Africa summit in washington. Open for business. Somalia has ades, transitional government. There is are obviously some concerns. Forces have made great strides. They have had had a surge. Is it successful . Indeed. Today,he last time, [indiscernible] will you need more to finish the job question mark so they can take over the responsibility in somalia. In terms of equipment, in terms of capacity. The forces in somalia, they did the best job they can. They continue to finalize. [indiscernible] to take over as soon as possible. You talk about the natural resources, some of the riches somalia has. Where are you on concession and concession boss . Have you granted concessions question mark not yet. So molly has been paired has been come has been preparing the ground for that. Before the collapse of the smalley is state. Shell is one of them. A number of others. We are negotiating with them [indiscernible] some discussions that are going on. But we are expecting that soon. Here will be good activities old partners and new partners will come also. For more on american efforts to invest in africa, i am joined from washington by the u. S. Ambassador to ghana. R. Ambassador, welcome back good to have you on the forecast. Good to be back. Since 2003, chinas investments in subsaharan africa, they have grown 40 fold. Does that necessarily mean the chinese got a 10 year head start on the United States . I think it means the chinese recognized early on that africa was an investment opportunity. Now i think at least part of the reason for the current summit is has been thet longstanding perception among American Business and among the american population, you know, the old image of africa as full of conflicts, disease, and poverty. The idea now is to bring these African Leaders to america to change that perception and for us to show what america has. It is not too late for American Business to get into africa. After all, i think the chinese have certain benefits, they have certain skills they bring. But i think when you look at overall, the American Technology etc. That we bring, i think once that is introduced, it will certainly help in our spread. Mr. Ambassador, in 2013, the u. S. Began the Power Africa Initiative to help build electricity, and generators across the countries. It has only been a year. Is the Initiative Starting to pay dividends . I think it is, very much, especially in ghana. We are about to conclude the signing of a second millennium challenge compact. This is going to be a revolutionary step in helping ghana change its power profile. Projectshere are other. American companies are coming in to ghana and throughout the continent. I think you will see tremendous benefits from the Power Africa Initiative, among others here it mr. Ambassador, africa is minimal mineral and energy rich. Why have investments in those resources not transferred in projects that could help eradicate famine . It is probably a questioned that will take more time than we have here. It is a questioned of not having the technology, the Good Governance required, transparency, etc. Is tof our summit here talk about a future partnership with african nations where Good Governance will be part of the important mix. Goodnk that if you get governance, i think we will see a change in terms of how those resources are allocated and how the benefits approved to the people of the region. I am speaking with the u. N. Ambassador rice, gene cretz. Of u. S. He sad legacies involvement in africa is american administrations often put dictators in power there. Has that history left africa skeptical . Will probablyre be a residual sense of that. I think with this particular summit, what we are actually saying to the African People and governments is we want you as our partners, we recognize your potential, and we are going to work with you to make sure that investment in trade increases. We will work with you to make sure there is a secure environment, and we will work with you to make sure the institutions that are required to bring africa up to the standard to which it deserves are going to be assisted by the United States. I think whatever legacy there may be, whatever what we do aght now is going to be tremendous legacy, for the obama administration. That a bullet outbreak that has affected the two americans who were working on the same medical mission in liberia, ghana is separated from liberia by ivory coast. Has the contagion spread to ghana and are you concerned the american cases are making headlines while hundreds of africans have already been killed by the disease . We have not. It has not spread to ghana yet. I am fairly confident based on t we have seen with sums some potential scares there that did not turn out to be bullock, the coordination ebola, the court nation between institutions, western institutions and health organizations, is pretty solid. Should it unfortunately come our way at some point, we will be prepared to deal with it in the best possible way. And again, the addendum to the questioned, it is making headlines because unfortunately two americans contracted ebola. Oft about the hundreds africans who already died . Of medias a question coverage. They are concerned for their lies. The coverage has been, basically, sympathetic toward the loss of any life. For americans who are there, for our nation, we highlight our own think thebut i general sense is this is an epidemic and whether you are black or white, it does not matter. It has got to be dealt with on a global scale. Ambassador, gene cretz. Always a pleasure to have you on. Thank you. Tomorrow on bloomberg, hans nichols will speak with and michael bloomberg, founder and majority owner of bloomberg lp. Mr. Bloombergs Philanthropic Group is one of the sponsors of the summit. Up next, we will look at highyield bonds and where they could be headed next. Last week was an ugly week for u. S. Highyield bonds. It was the worst in more than a year. Investors pull more than 1 billion from junk bond etfs. Lisa abramowicz has been following this story. She joins me in studio. Why do investors care so much about junk bonds . They are bonds to the riskiest companies. Historically, when junk bonds start to lose value, they can act as a canary in the coal mine. That is how some investors look at them. They can be a leading indicator. Particularly, the etf. It is a relatively small market. It is. 1. 6 trillion. You are talking about the u. S. Highyield market. That compares to 12 trillion u. S. Treasury market. It is not that significant when it comes to that. However, this is a major part of our economy right now. The riskiest Companies Investing and growing with the economy, a scion of the health of the economy. Who are these sellers . The etf has attracted a lot of institutions. Mutual funds by etfs as a way of quickly getting into the market. You have individuals, retirees, you have them buying it as a way to also get access to a relatively liquid market. The selling seems to be pretty broad base. Based. Or twos not just one institutions. Do the Analysts Expect us to continue . It is unclear. Seems like there will be a bounce back of some sort. A sense im getting from analysts is that people are not expecting a full return to the value am a where we were june 20 when the yield reached a record low. All right. Lisa abramowicz, thanks so much. 26 minutes past the hour, bloomberg is on the markets. Julie hyman joins us again with the details. Thank you. Us take a look at where stocks are trading right now. We have not had a big move right now in todaysession, despite that big move we had last week him of the biggest drop for major averages in about two years. Nonetheless, we are sort of adding to the gains as the session goes on, with both the s p and the nasdaq up 4 10 of one percent. In terms of individual stocks where watching today, take a look at mcdonalds. A are poised to sell beef, chicken, in china again. That is after one of the suppliers was accused of packaging meet. It is too early to estimate the full effect on the Company Passes earnings. Studiossys marvel guardians of the galaxy. Earnings tomorrow may seem bottomline benefits, in terms of viewership and continuing strength from frozen. We will have more on the markets in 30 minutes. Welcome back to the second halfhour of bottomline on Bloomberg Television. I am Mark Crumpton. Thanks for staying with us. Lets check in with some of the top stories we are following for you this hour. Israel is facing renewed International Criticism after an apparent israel strike killed 10 people at a u. N. School being converted into a shelter in gaza. Israel says it has targeted three wanted militants on a motorcycle in the area of the school. Former White House Press secretary james rady james brady has died. He was wounded by John Hinckley in his assassination attempt on president ronald reagan. A personaltook crusade for gun control and the federal law requiring a background check for handgun but buyers there is his name. A jersey retired by the green bay packers. He spent 16 years with the team he 40 was traded. He will return to green bay next year to be inducted into the packershall of fame. Now for the commodities report. Su keenan is here in the newsroom with the details. Good afternoon. We have got oil snapping a fiveday losing streak, crop futures rallying, and hedge funds cutting back on their polish gold bets. Lets check on oil, because it is bouncing back on the day, rebounding from a month that proved profitable for oil bears. It is the most in more than two years. A lot of this has to do with refiners cutting back rates as gas demand dropped. We had a lot of fuel stockpiles. Positions paid off as oil futures fell to a sixmonth low. Analysts say last weeks more than four percent drop is now being seen as overdone and rising tensions in iraq, that is also behind todays rebound. Militants have taken control of oilfields. Two gasoline futures are moving lower and this has a lot to do highestineries production sister thousand five. A lot of this is being passed onto consumers in what we are calling a nice mid summer break, with some of the lowest prices at the punch at the pump since midmarch. Just over 3. 50 a gallon. The biggest gainers, what is the story . Week futures extending their threeday advance, boosting prices to a twoweek high. A lot of the reason gain has to do with speculation that demand for u. S. Crops will increase, especially after Rainy Weather hurt the quality of some crops over in europe. France received double he double the normal amount of rain. Coin corn, soy, wheat futures all among the biggest gainers. Gold and a lot of the other treasures metals, hedge funds cut bets that gold would rally for the longest decline or come off his longest decline in a year. Prices have dropped three weeks in a row. The rebound does not seem to be there. To quote one analyst, what we have got here is the fear factor that typically drives gold. Partly due to the Economic Growth. He says gold probably will stay in this range. Su keenan, thank you. Gotham greens is taking an innovative approach to urban farming. The Company Builds commercial scale greenhouses and delivers locally grown produce to customer 365 days per year. Carol massar visited the gotham facility. Greens they look tasty. They look really good. It is the best we have ever eaten. The gotham greens ceo knows his basil, lettuce, and tomatoes. He knows new york city has plenty of space to grow them on the roof. S1 badly under utilized resource the rooftop. There was trepidation on the part of some building owners, but a lot of them thought it was a pretty compelling idea. The idea, now a reality, is building commercial scale testified free greenhouses on roofs. This 25,000 squarefoot rooftop farm grows produce 365 days he or. Days a year. Temperature humidity, co2, wind direction, wind speed, solar radiation. If it gets too hot or too cold, fans, shade, and vents kick in to keep conditions in 9 degrees, a 6575 controlled environment, getting food to consumers faster and fresher than a farm. How quickly do they get to the shelf . Oftentimes they are harvested that same day. The Company Build a second greenhouse on the roof of the Company Passes first whole foods market. We are growing green leaf and red leaf lettuce, arugula. It is reaping impressive returns. You are profitable today . Since day one, we have been profitable. He will have 100 growth in revenue and next year, 300 forecasted. This farm will probably yield almost 20 times the yield per unit area compared to a conventional farm. Lot morebably costs a than conventional farming. We are not trying to save this is the best way to do it with the future or does it have a role to play . Absolutely. We are growing extremely high quality products in close proximity to large urban marketplaces. At the same time, at the heart of it, we are farmers. Bloombergs chief National Correspondent carol massar reporting. An exclusive look into how karl rove is preparing the Republican Party for the elections. We continue in a moment. X first, bloomberg. We wanted you to know that bloomberg is the only is this news service offered on amazon fire tv. Remember, if you missed any of our interviews, you can watch them on bloomberg on apple tv. It features Live Streaming and ondemand. It is time for todays latin america report. Argentina, where investors in the forwards market are anticipating a 10 drop in the peso. That is after it defaulted for the second time in 13 years. Economists at Jpmorgan Chase say traditionally, debt problems are highly correlated with currency devaluations and they say thentina may act to bolster peso more aggressively. Cut their 2013 Economic Growth forecast for their 10th straight week. The nations roast domestic roddick will expand by 0. 86 this year according to a central bank survey. Economists are also forecasting that inflation in july surged are there beyond the upper limit of the Central Banks target range. That is your latin america report for this monday. American crossroads and crossroads gps are groups founded by x george w. Bush aide karl rove. They are essential to the Republican Partys goals for the midterm elections. Phil mattingly got an exclusive inside look at their opportunity in this latest installment of our series, powerbrokers. X is america moving forward or backward . They were the behemoths of the 2012 election cycle. American crossroads and crossroads gps and hundreds of millions of dollars. American crossroads is responsible for the content of these this advertising. And they lost. 2013 brought deep soulsearching. Meet stephen law. The groups president and ceo. He spent the year listening to donors who walked watched the group come up empty. They like to believe the investors will have a Material Impact on the country. Funding was slow at first, but a favorable electoral map and find donor pitch started to take hold. Check. Illion the money enabled crossroads to deploy a new, sharper strategy. Before this year, it stayed out primaries. 2012, that open for weaker candidates. Who lost in the general. In 2014, no chances striking an agreement with other groups to ensure the right candidate moved on. North carolina was a big test. There, crossroads spent one point 6 million to help tom with his primary. Joint polling, joint communication. Level of coordination we hope will continue in the fall. The groups political director worked between groups, a key component. Take a look in at the last five weeks of spending. The Campaign Push in a big way for a month, then the u. S. Chamber took the final week, stepping in right when crossroads finished. It is illegal for the groups to communicate directly with campaigns, but there are other ways, like using the media to broadcast where and when they will spend 20 million on fall tv advertising, which crossroads did in early july. Tryingsee other groups to layer in and that is a coordinated effort. Another component is crossroadss own on the ground intelligence operation, all led by forti, who then turns that into ads. Carolina,in him at iowa, montana, we will look at what is going on there right now, how we think how much we think the candidate needs, what theyre funding looks like, so they can go on the air. Thank you very much. With primary season coming to an end, donors are looking for returns. Our donors are looking to be a private equity Fund Investing in politics. Based on a lot of data and ground research. That was bloombergs white house correspondent, phil mattingly, with an exclusive look at karl roves super pac and the way the group has changed the way the Republican Party approaches were elections. Approaches elections. Coming up, we will look at which company scored the highest in it comes to Workplace Diversity. Bottom line continues in a moment. Welcome back. This is bottom line on Bloomberg Television and streaming on your tablet, your phone, and bloomberg. Com. Almost as tall as the statue of liberty. The norwegian breakaway weighs more than the eiffel tower. We take a look at the world has his biggest cruise ships and the luxuries they offer passengers. There have been some big announcements out of Silicon Valley recently, not concerning the latest apps or the newest gadgets, but rather Workplace Diversity. Shelby holliday is here with the latest diversity numbers from ebay. How does the Company Stack up . There is good news and bad news. According to these numbers, ebay is doing better than its Silicon Valley peers. 42 of the companys workforce is female. Facebook, google, yahoo , and linkedin. Seven percent of u. S. Employees are black, five percent are hispanic. The bad news is they still do not represent americas diverse population. White men are still taking home the top paychecks, they are getting the top jobs, the leadership ranks are predominately white. Ebay is slightly more diverse than the other tech giants. Are there Tech Companies that have not disclosed these diversity demographics . The big one is apple, the one Everyone Wants to hear from. Apple has rolled its eyes at the idea of releasing these numbers in the past. Ceo tim cook said they will do it, we just do not know when. We are also waiting to hear from microsoft, amazon, ibm, yelp. There are quite a few companies that have not reported numbers. The graphic on the screen tells a big story. The blue, male, the pink, female. Male at ebay. These numbers tell a story. They do. 47 of the workforce in the u. S. Right now is female, according to the census in 2010. The female numbers are not that far behind. But when you look at the leadership ranks and also the tech jobs, the stem jobs, those are dominated by males. Why are these numbers important to these companies . They are important for a few reasons. People really expect Silicon Valley to be on the cutting edge. And Technology Sort of promises this idea of the great equalizer. When you look at these numbers, that is not the case at all. Perhaps more importantly, diversity studies have shown that diversity really helps foster creative innovation. Companies do better when their boards are diverse. There are a lot of reasons that it benefits companies to have more women, more minorities, and more people that reflect the customers. When you were doing some research for this, was there anything that surprise you, anything that jumped out at you . Read, the more i read, the more i realized these numbers are not surprising. That is what i thought, too. Are being applauded for reviewing these numbers. The numbers themselves are not that great but the fact that they are looking at this and looking in the mirror is a step a lot of people have wanted to see. Shelby holliday taking a look at diversity numbers in Silicon Valley. Thank you so much. Stay with us. Another check of the Market Movers is coming up at the end on the other side of this break. Bottom line on Bloomberg Television continues in just a moment. Get the latest headlines at the top of the hour on Bloomberg Radio and streaming on your tablet and on bloomberg. Com. That does it for this edition of bottom line on Bloomberg Television. Im Mark Crumpton reporting from new york. Thank you so much for joining us. On the markets with julie hyman is next. I will see you tomorrow. It is 56 past the hour. That does mean bloomberg in bloomberg tv is on the markets. Its take a look at where stocks are trading right now. About an hour until the closing bell. Building on the gains today after the big declines last week, the s p today is regaining about 7 10 of one percent, s are part of that story. The bailout in portugal. Lets take a look at the treasury today. We did see stocks move higher. We are not necessarily seeing selling in treasuries. We are buying on the short end of the curve. A steepening of that yield curve with heels on a longer and moving higher. Joining me with more on markets and what investors should be watching for this week, managing partner at old lackey companies. We did see the clients. Declines. Today, do you think we will see a deeper decline for stocks . Click there is always a risk when we go into august that managing directors go to the beach and the Vice President , the takeover [indiscernible] that is certainly a risk. Out of all the risks out there, that is not the one we should be paying attention to. Clearly, what happened last week is we refocused on this policy risk, this mitch mismatch. Market expectation and labor force participation. What will happen over the next couple of weeks is probably range bound. Earnings season coming out so far for u. S. Equities, pretty good. When you think about it, the risk could be slightly to the upside. Mismatch,said, that the data we got last week was largely positive for the economy, right . Yes, that is the irony. The irony is that we have this virtual utopia of geopolitical risk, of macro risk, policy risk tom a but at the end of the day, what really i think equity traders will be focused on for the next couple of weeks is still earning season. Credit traders, conversely, will be focused more on those interestrate risks. The 10eed to look at year. Why is it trading at such a range in the environment, why is it down today off the basis of better than better u. S. Economic data. That is a mystery. Speaking of credit, high yield has been a topic of discussion here. We so was just pointing out earlier that we have seen concern expressed in the highyield market. Should we be concerned or should the equity market be concerned from that signal . I dont think so. Look, high yields in and of itself is a classic that is not as bound to rates risk as other types of credit instruments. Really highyield investors have to look at, i think, are credit risks Going Forward and how much duration they have in their portfolio. I think that has been managed pretty well year today. It does not surprise me that we are taking a little bit of risk off the table in highyield. Not at all. Youre still buying stocks . Sounds like youre pretty bullish . Selectively. Things like nasdaq 200 are a good place to be. Thank you very much. We appreciate it. Street smart is next. Welcome to the most important hour of the session. The worst weekly loss in two years. Im trish regan. This is street smart. Coming up today on the show, israel says its on course to destroy all of the tunnels dug by hamas. The violence in gaza spreads to jerusalem and we will hear from leading palestinian voice. Andstselling author professor of arab studies at columbia university. How argentina may be able to get payments to bondholders
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