Today. Phil mattingly previews todays prime earnings. At deals under bob eiger at disney. Lets go to hans nichols in washington. It has been a day of deals, a day of investment. 2 billion from ge, a total of 17 billion. That is the announcement here. Im joined by the president of the world bank, jim kim. Is this summit beyond your expectation . We were very surprised. What we had hoped would happen seems to be happening. What is exciting is that the leaders in the American Business community, who probably did not know much about africa are getting a very different sense of what is going on in africa. Weve been saying for a long time that weve been growing. The debt to gdp ratio is about 31 in the whole continent. Weve got good policies in place. A lot of good things about africa. But i think the ceos did not know right what was going to be and to they got here and met some of the leaders and saw for themselves. And that is Jeffrey Immelt point. Oft hes not doing this out all truism. He has shareholders to please. Is that the message echo absolutely. If we are a little bit more aggressive about queen of the risk capital, about doing the bankable projects, investors will get a strong return and we increased access to elect to see and electricity and lower the price. There are a lot of winwin situations in africa. Also some concerns. Stability, governance does africa have more milestones to hit . I think in just about every country i visit, and can be better in terms of governing. But i think people would be surprised at how much progress has been made. For example, in wanda, the only country in the world with more women legislators than men in rwanda, the only country in the world with more women legislators than men. After corruption, budget overflows, printing money i ofnk those are the africa your grandfathers time, not today. Where do we need progress echo the most important area is energy. We have a situation of almost energy apartheid. All of africa has about the same amount of energy as all of spain. 5. 5 with about two thirds of the people not having access to energy. Those are obviously big projects. You can almost feel the ceos salivating here over the deals. Is this going to be clean energy . What we have tried to do is put every single dollar that we can into building clean energy. And for us, that includes hydroelectric power. Wind power. Geothermal. That africa news is has huge possibilities in those areas. It will we will very much focus on those. I think what the africans are saying is, you cannot tell us to go without power because of the carbon that was put into the air not by us. To thevery sensitive idea that africa deserves to have power and there has never been a country that has developed with intermittent power. That means coal, right . Going to avoid investing in coal in any possible way, because it is the dirtiest form. But at the same time, weve got to respect the africans demand for access to power. A big announcement you made yesterday, 200 million to combat ebola in west africa. Give us a timeline for containment . The reports coming out of the cdc and World Health Organization are talking about three to six months for containment. Ebola is a terrible disease. Its mortality rate is extremely high. But its not like bird flu. Its transmission, you have to have direct contact with fluids. We feel we can get it under control. The problem is, it happened in countries that are also fragile. On top ofs problem their fragility has made it extremely tough. And were doing, completely the guidance and leadership of the World Health Organization, we are providing funding immediately with four basic materials, protective equipment, things like that. And we will really try to focus on building the Public Health kindsystem to prevent this of disaster from happening in the future. Nuance bitals, new clinics across the board new hospitals, new clinics across the board. It is not necessarily the treatment part, but prevention part. We will focus on that. It is an estimate of loss of Economic Growth in those three affected countries. The early estimates, for example, in guinea, we think it will drop a full percentage point, which means a 20 of growth. Gdp will be 1 less than it would have been without it. That is right. A 20 to 25 gdp reduction in guinea. We hope this does not affect the way people see africa. It could have happened anywhere. Are being so aggressive is that we want to send a message that these are problems that are tractable. We can take care of them and get them under control. And we can build a new structure to prevent it in the future. Can i get your idea on of the losses in the other countries . We do not yet know those numbers in that region. Why . Its still very early in the epidemic. The quality of the data in these affected states is difficult to assure, at best. In these kinds of situations, it even more difficult. Part of what im hearing is that one of the successes of this summit is that everyone thinks that africa, a multiplicity of countries, where somebody could be isolated in three countries and not affected elsewhere. Africa is not a country. Africa is not a state. Africa is many different regions at once. And what we so often see you thinkebola, and you africa. There are many concerns, but there is so much else going on that is just fantastic. 22 countries now have their own oil and natural gas and there will be 45 in 10 years. But there are challenges with that. Typically, to extract natural resources, you have corruption. How do you work around that echo at the world bank, we are very glad that so many of the african countries have signed on to what is called the extracted Industries Transparency initiative. This is to be very clear about what payments are going on back and forth. Equatorial guinea, are they clear . Levels of varying concern from country to country. But tell me about your level tell me about your concern for equatorial guinea. We have concerns about equatorial guinea, but we also have concern about countries all over the world. The point is not to blame one country or another, but to have the system in place to detect and go after corruption. We have been developing the systems for 20 years. Toare the First Organization begin talking about corruption. My predecessor, jim wilmington. We have good systems in place. And we know even among the mining companies, many of them are right with us in their determination to fight corruption. The real issue is because the Mining Industry also creates a lot of jobs, so we have to make sure the proceeds from the extractive industry go into investment in human beings for the that is the goal of all this, investment in human beings. Thank you for joining us. With that, back to you, mark, in new york. Hans nichols with the president of the world bank, mr. Jim kim. Up, we look at opportunities for investment in africa. Bottom line continues in just a moment. Two Major Players behind the u. S. Africa business form are secretary Penny Pritzker and former new york city mayor Michael Bloomberg, founder of bloomberg lp, the Parent Company of bloomberg news. Our International Correspondent hans nichols sat down with both and began by asking secretary pritzker about one issue that is weighing on businesses, whether u. S. Congress we authorize the export bank. The president and the administration are 100 committed to getting exim bank reauthorize. It is a fundamental tool that we need to get American Goods sold around the world. X ander countries have banks. We dont want to give up a financing tool for whatever reason i dont understand. This is really important. And there are american jobs on the line. That is what seems crazy to me. The president wants to spend 7 billion, but five billion dollars is for that. There are persuasive argument. But will they be persuasive on fact on capitol hill . We will be persuasive because every district in this country has a company that is selling something around the world, that if it is not their product getting xm financing, then they are applying to a product getting xm financing. Ifshould there be a plan b the reauthorization does not come through . I think they have to focus on getting it through right now. Happen,hing doesnt then they can come up with a plan b. Not a political stunt. This is something that every other country does. If were going to be competitive, we have to do it. If you increase should not do it and you can get all the countries to stop, then we will have a level playing field. We will not have as much business, because this is a catalyst and his people the ability to buy now and pay later. But nevertheless, it is the competitive aspect i worry about. We talk about growth and opportunities for u. S. Businesses. Infrastructure is one of them. Ge announced 2 billion today. They sell high ticket items. Where are the opportunities . I lead a trade mission to just a fewo nigeria months ago. There are enormous opportunities. There are Companies Helping antiww from North Carolina there are country Companies Helping. One from North Carolina that is helping. Theyre working to get more electricity out of their infrastructure in ghana. There is so much opportunity in terms of power, electricity, technology, solar. And what does the president know and why has he been pushing power africa . For yourpower in order economy to continue to grow. Africa is underpowered. Every way you look at it, i dont care how you analyze it. They need hundreds of billions of dollars of infrastructure, particularly power. This year, the president will announce not only deals, but a greater intention around powerful to obviously, power is important. So our roads, getting to and from places. When you look at cities, mr. Mayor, what cities are investing in the right way echo in the right way . If you want to get from the center of town to the airport in some places, it can take a good day. There are clearly not enough roads in a lot of places. It is tough to get around some american cities. To that impedes the ability get to a place for education or medical care or commerce and that sort of thing. One of the things youve got to look at is that technology is different today. You dont have to have the same infrastructure used to have to have. The people in africa have a smart phone. They did not go and run telephone lines all over the continent. Are satellite medications, cellular communications. And the same thing is true for commerce. Africa, in south cape town and johannesburg, thriving, bustling cities. Do they have for people that need help . Absolutely. So do we in our country, and weve got to take care of our poor and theyve got to take care of theirs. And sometimes we can even help each other. Look on the street and you say, wait a second, these cities will be very competitive. The four we talk about these trends urbanization, big cities, the potential for finance, is africa going when you look at investment vehicles, are they going to be the new hl . The new asia . Will be the next hong kong in africa . I think if you look at south africa. There are stock exchanges all through africa. They trade driven this. There is all sorts of kinds of financing that has different risk or files and payment profiles and cash flow profiles. Day and age, things are happening much more rapidly than they did before. Can i build on that . When we were in africa, one of the places we visited was meltwater, where they are training young innovators and entrepreneurs, african innovators and entrepreneurs, and how to make an idea and get it financed and build a business. That is a key part of the opportunity in africa. Helping hunt winners build their businesses with the kind of infrastructure that we are talking about. Buildping entrepreneurs their businesses. With the kind of infrastructure that we are talking about, that is becoming more and more possible. And you dont need anymore to personalificant infrastructure to be able to invent and create, lets say, a new app, a new game. Just amazing what is going on there. And i think its one of the reasons to be very excited. And there is enormous opportunity for American Business. The u. S. Commerce secretary Penny Pritzker and Michael Bloomberg, founder, and majority owner of bloomberg lp, the parent of bloomberg news, sitting down with our National Correspondent hans nichols. Still ahead, the battle within the Republican Party plays out in todays primary elections. We will have a preview of what is at stake when bottom line continues in just a moment. Welcome back. This is bottom line on Bloomberg Television and streaming on your tablet, your phone, and at bloomberg. Com. New yorkers got a scare on monday when it was reported that a patient admitted to a local hospital might have ebola and now hes listed in Good Condition and unlikely to have the deadly virus. Health officials are telling residents they should not be worried about contracting the disease. This comes as two americans are being treated for a bola in atlanta four ebola in appear to be on the mend after an experimental serum was used. Case of desperate times, Desperate Measures . That is right. There is no cure for ebola, no vaccine. Bloodts are given fluids, transfusions, and antibiotics with the hope that their systems can fight off the virus. But with the case of a fatality rate up to 90 and the death toll of nearly 900 from this latest outbreak and in west africa, those measures are far from effective. At the request of the u. S. Charity that works with the two infected americans, dr. Ken rightly, theyncy were given and administered serum and have responded well. It has never been tested on humans until now. The drug is made with tobacco antibodyom an ebola harvested from infected mice. Until now, the Pharmaceutical Company has been little known with only nine employees. They are much more well known now. If the serum had yet to be tested on humans, how did they get the goahead to use it . That was the gamble. Desperate to save their aid workers, samaritans purse reached out to the cdc asking for experimental options. That led to a contact at nih, who directed them to this zmapp drug. The fda has strict drug rules, but can improve Emergency Action under what is called the compassionate use clause. That is what we are seeing here. Us fromyang joining washington. Thank you. Coming up entree six minutes past the hour. That means liver television is on the markets. Olivia sterns is standing by with details. Bloomberg television is on the markets. Olivia sterns is standing by with details. Good afternoon. We did see the equity market drop another bits in the last halfhour. Down about 1 or more right now after comments from the polish foreign minister saying that Russia Military is poised to invade ukraine. Couple ofo watching a individual movers for you. Mgm, the largest owner of the casinos on the last vegas strip reported secondquarter earnings that beat analyst estimates. Gambling rose 6 . Macaus unit is losing ground. High rollers are taking cables there. The brand behind share house posted secondquarter off the secondquarter profit that missed estimates. We will be on the market again in 30 minutes. More bottom line coming up after the break. Welcome back to the second halfhour of bottom line on new on Bloomberg Television. Im mark crumpton. Thank you for staying with us. Lets get a ticket top stories. U. S. Service industries such as builders and retailers grew in july since at the fastest pace since 2005. The nonmanufacturing index increased to 58. 7, exceeding the highest estimate in a bloomberg survey. Itget says it secondquarter profit missed its own forecast as u. S. Sales remain weak and canadian operations continue to struggle. Earningspershare came in at . 78. Analysts projected . 85 to one dollar. Target has been trying to regain shoppertrak founder hackers stole Customer Data last year. And israel has pulled the last. F its troops in the gaza strip israel says it has achieved its goal of destroying tunnels that militants used to stage attacks. In the meantime, egypts official news agency is reporting that is an israeli delegation has arrived in cairo to join talks on a permanent ceasefire agreement. It is time now for the commodities report. Su keenan is standing by. Good afternoon. Taking the spotlight right now is west texas intermediate as prices fall for the sixth time in seven days. Brent crude falling to a fourmonth low, on this speculation that demand will peak as summer driving comes to a close. Refinery activity has already peaked for the year and should continue to fall as demand tapers off. We are all nervous about tomorrows simply supply data. And with the drop in oil and gas supplies. Meanwhile, the head of nesta oil, which gets most of its supplies from russia, says it has not seen any real impact from sanctions so far. From have some 65 coming crude from russia. We have turned that we could turn that if needed. There is an impact in transportation, not just because it is higher, but at the moment, we are speculating. Lets see what is going to happen. Reported they partly missed estimates. Ive and a down day for metals. What is going on . With the exception of gold, which has been swinging between the forecastses, is for goal to reach 1400 by years and as inflation picks up. We see gold separating from the pack. Silver heading for its longest slump in almost three weeks. The story one strategist says to blame it on the dollar when pushing metals lower. For, lower physical demand solar. Meanwhile, pork belly costs have plummeted due to a virus in pigs. No sign yet of the slack in demand. The establishment versus the tea party war that has been raging inside the Republican Party is set for its final battle this week with Senate Primary elections in kansas and tennessee. Bloombergs White House CorrespondentPhil Mattingly has been looking at the races and he joins me now with a preview. Good afternoon. The republican senators that are up for reelection in tennessee and kansas, in many ways, they fit that model of party incumbents that have been knocked off in the last two election cycles. They are veterans of the chamber , age and their 70s. Reliably conservative records, but not on the far right. Both are in relatively good shape, according to good shape according to officials i spoke with headed into this week. The primary concern is money. Alexander has raised 6. 3 million just in the start of 2013. That is more than 5 million than his challenger, joe car, has in the bank. Pat roberts has brought in 4 million 3. 4 million in that time frame, almost 2 million more than his challenger, wolf. The behemoth on the far right throughout the cycle has been the club for growth has been backing conservative challengers that have knocked off incumbents. It has spent 6 million this cycle on expenditures. And it has not gotten behind either of these challengers. While both have attracted grassroots support, especially in these last couple of weeks of the campaign, the lack of that major outside help has been a big handicap so far. Today,kansas primaries tennessee is on thursday. Which candidate is in better shape at this point . When you talk to conservatives on both sides, the far right and the establishment, they are pointing to pat roberts as being the most in trouble of the two. Alexander did everything right throughout this process. He raise a ton of money and got his organization in early and he attacked. Dogged bys has been issues of residency, whether or not he spends too much time in d. C. If you look at kansas and what has been dogging pat roberts, if theres anybody that might be able to capitalize here, it is milton wolf, his challenger. If it has been a heavy week for primaries. What else this has been a heavy week for primaries. What else should be keep our eye on . One other one, hawaii and the democrats. Another primary on saturday. The current incumbent is supported by president obama. And then the challenger is the establishment hawaii democrat who is challenging. The nature Democratic Party battle you might want to watch. And in michigan, there are couple of house races you will want to Pay Attention to. Republicanshment wanted to take out justin watts, but it looks like they will fail. Phil mattingly, thank you. Coming up, poverty in america. We will find out why there are more People Living below the pel the federal poverty line in this nation suburbs. Welcome back. Lets get to the latest on argentinas debt crisis. Sheelah has been following the story. What is the secret plan . Bear with me as i take you into the weeds. Basically, we know that argentina has deposited 535 million with the bank of new york mellon. Which the judge said they cannot touch. Right, they have blocked the melon the money. Is saying they have not defaulted because they put the money with the bank trusts. According to the document, they have to take the money one step further on the chain to the depositarys, a different route of entities. If they get the money to the depositary, they will be out of default. And there is a tricky provision in the bond itself that says they could actually, if they chose, right paper checks, send them to the depositarys. That would cure the default. And they still would not have settled with the hedge fund holdouts. This is just a little trap door that exists in this whole thing that no one has been paying attention to. A little mistry codicil no one saw. Division wants to know who ordered these default swaps triggered by the default. What are they looking for . The argentine and the politicians and argentina have been a suggestion that some who hold the bond, who are holding out on negotiations with argentina, also owned credit default swaps, which means they would have been in negotiations with argentine government while at the same time in a position to benefit if the country defaulted. Argentina is essentially suggesting that they negotiated in bad faith and they are asking the sec and the u. S. To help them investigate who owns these cds contracts and whether something untoward has occurred. Heres a twist. Argentina wants the debt negotiation or the debt negotiator and mediator of place. Is the judge going to give them their wishes . They are trying everything they can. They went to Court Last Week and they said, we have lost faith in this initiator, Daniel Pollack is his name. In argentina, they have called him in by ash have called him biased and incompetent. There is very fiery rhetoric coming out of the country. They said they would like someone else to start fresh. Today, the judge said, no. There was no gray area in this response. He basically said, it would be a disaster if we changed at this point. You are stuck with this guy. Bloomberg is reporting argentinas dollardenominated bonds that defaulted, they are actually doing quite well in the market, better than the peso denominated bonds that did not default. How is this possible . It is counterintuitive. You would think they would have plummeted, and they have gone down a little bit. But the market seems to be expecting some kind of resolution. Even though if you look at all the details, theres no sign of imminent resolution. No one is talking. Everything is sorted at an impasse. But the market is showing optimism that this will get worked out. To be continued. Thank you so much. That is your latin america report for this tuesday. A recent brookings report Research Finds that the economic turbulence of the past decade has redrawn the geography of poverty in the u. S. Joining me from washington is elizabeth, chief fellow at the metropolitan policy program at brookings, and coauthor of confronting suburban poverty in america. Welcome to bottom line, and thank you for your time. You right here that as poverty has spread, it has not done so evenly. Of 2012, the poverty line in the u. S. For a family of four was 23,492. What do the geographic lines of poverty look like, and what happened to the gains that were made in the late 1990s . A strikings were decade, not just for how rapidly poverty grew, and the fact that we are now seeing it at record levels, People Living below the federal poverty line. But we also passed the Tipping Point in terms of where the population is located in the country. 20002012, between the population in the suburb grew by 55 . It was the fastest growth we saw in the country. It was faster even than what we saw occurring in large cities or major metros. For the first time, we have more poor residents living in suburbs than cities. By 2012, 3 million more. Shift goes from urban challenge to a regional one. What impact is it having in the metro areas in terms of where you are finding the steepest increases in poverty . The challenges that come along with this rapid growth of poverty, and the fact that not only as poverty has grown, it has also become more concentrated, and higher poverty and more distressed immunities, which are also emerging in irving urban communities. That creates challenges, particularly for those who have not built up infrastructures and support systems that cities have spent decades creating in order to address the needs of the poor. Now you have many communities facing the properties the level of poverty they have not seen in the past and they are not adequately equipped to address those needs. What is the difference between distressed neighborhoods and high poverty neighborhoods . Again, as we have seen this rapid growth of poverty in the 2000s, weve also seen a number of neighborhoods that are high poverty, which would be 20 of the population living below the federal poverty line poverty line. Or more. And in distressed neighborhoods, which are areas that have percent of their population living below the poverty line, or greater than 40 . Of concentrated poverty, or concentrated disadvantage, have been growing rapidly. Progress in we made the 1990s in diminishing the number of communities that fit those designations. Now we are seeing them grow again. And especially in the wake of recession, broke right grow quite rapidly. In the suburbs are home to those communities. Lets talk about the purple effect of what you call a double burden faced by poor individuals. When they are poor and those around them also live in poverty, how does that impact entire neighborhoods for maven when some individuals in those neighborhoods are living above the poverty line. How does that impact entire neighborhoods even when some individuals in those invalids are living above the poverty line . When theyre living in these neighborhoods, they are also facing the challenges of being poor in a very poor place. Residents who are not poor, are also facing challenges that crop up in these communities to my things like higher crime rates, failing schools, and poor education outcomes. Poor health outcomes. And theyre also in and there weaker jobewer jobs, networks. It can make it to google to get out of poverty. We have about 30 sec it can make it difficult to get out of poverty. We have about 30 seconds. What does this mean for resources, especially at the state level . Strong economy is important for helping to make progress against these trends. It is important that regions are seeking and five and striving for growth that is inclusive. That we are finding ways within these regions to connect low income people and places to Economic Opportunity that can offer them a path out of poverty in the long run. Elizabeth niebuhr, a fellow at the metropolitan policy at brookings. Thank you for your time. As disney gets to report its latest earnings today, we will look at the recent deals that are transforming the company. \ disney repurchase reports earnings today. Rival foxx has announced deals that have transformed the company. Erlichman, is disneys buying spree going to continue . Positionmpany is in a to choose to say to investors that it is not in a position to do more deals. The purchase of pixar, the purchase of marvel, the purchase of lucasfilms has given them a bigger stable of brands to distribute already. What are we likely to see in disneys results today . Think, be on the performance at the box office, which is highlighted by films like the marvel movies, captain america the most recently in they are so dominant. Hen it comes to profitability that will be part of the story to watch. Thank you. Keep watching bloomberg for johns interview with disney ceo bob iger. That is coming up at 4 30 p. M. New york time. Get the latest headlines at the top of the hour on Bloomberg Radio and streaming on your tablet and at bloomberg. Com. That does it for this edition of bottom line and im mark crumpton. I will see you tomorrow. It is 56 passed the error, which means Bloomberg Television is on the markets. Im a libyan im olivia sterns. Besident obama will delivering Closing Remarks at the u. S. Africa business forum. I will bring you that live when it begins, or you can also watch it live at our event channel bloomberg. Com tv. And also, an interview with Michael Bloomberg coming up on street smart kos quote in about an hour. Lets look at where stocks are trading. Stocks are moving lower, particularly on comments that the polish foreign minister stands ready to invade on polishs from the foreign minister that russia stands ready to invade ukraine. Im joined by mike crofton, the president and cto of the philadelphia trust company. You are in the cap, like many in the markets right now, that we are overdue a correction. Even Alan Greenspan is weighing in saying it is time now, the markets have been on such a steady clip up, things will turn around. Why do you think this is an election point now . I think it is an Inflection Point now because the fed took us to this point and now its up to the economy to get us to the next point. And even to justify where we are. Of even just a week ago of 4 , to show that we are on track to justify the market and to get it to higher levels. What will give us a correction . We have had so much geopolitical risk. Nothing has sent the markets down 10 . Over the weekend, it was a taper tantrum last week. That got the market going. And we have global Geopolitical Uncertainty in lots of places israel, and the ukraine is what is affecting the market today. And isket is tired looking for any excuse. It is probably really healthy. Where do you weigh in on valuation . I think valuations are fair, not cheap. But they will look cheap in retrospect if, in fact, the economy is on a 4 or more growth rate for the next couple of quarters. Belief, you can safely invest. If it is not your belief, you should probably use pullbacks in individual names. In this environment of fairly valued, overdue a correction, what sectors do you like echo i like industrials. I like technology. Technology is selling off today, so its probably a good time to get in. I like energy. That piece is intact for a very long time. And the global to multiply we are going through right now adds credence to the global domestic nine you dont think the Domestic Energy story has been overbought . You dont think the Domestic Energy story has been overbought . I dont think so. It is really almost a new industrial revolution, if you will. Did enact an oil embargo, it will be. Any names that you like echo i like devon, occidental. But for different reasons. Chevron. E it has integrated as the cheapest. Thank you very much. Mike crofton with his views on the market. Street smart is coming up next. Welcome to the most important hour of the session. We have 15 minutes to go. Strongly right here about concerns escalating in ukraine. I am trish regan. Street smart starts right now. Signs up today, warning russia may be preparing to invade ukraine. At the same time, Vladimir Putin ordered his government in response to sanctions