Stocks and stories making headlines today. On the ebolaorts outbreak in west africa. But we begin with still mattingly on the primaries and the impact on the Republican Party. How are you . This week marks the end of what has been an intense battle inside the Republican Party between the Tea Party Wing and the establishment wing. The total for that battle 135 Million Dollars. That is what we totaled. An immense amount of money that really split the party in two. The key question has been throughout, who will be the winners coming out of this . It is a bit of both. On the establishment side, you have the u. S. Chamber of commerce, the nra, the super pacs. You have on the tea party side, groups like club for growth and the Madison Square project. The big winners throughout at least on the senate side, appears to be the establishment, with the slate they are bringing to the election, largely the individuals with big money are better than the last three cycles. Talk to us about democrats. What have they been doing throughout this entire process . Everyy are thrilled with single dollar spent against another republican. No question about that. There is some wariness. There is make knowledge that when you talk to democratic operatives in the states and in washington, republicans have a great map and good candidates. However 130 5 million, that is a whole lot of money not being spent against the democrats. Million, that is a whole lot of money not being spent against the democrats. They are getting free shots at potential candidates and watching money leaves the Republican Party. A positive for them that these battles happen. A negative in the sense that republicans are bringing better candidates to the table. Republicans feel that they are working with a much larger map of possibilities than even they thought possible. Where do they think they can play . Mark, i think this is the most interesting part of the last couple of months. If you think back to 2013, you would never think there would be into 12 states legitimately play. Michigan, colorado, a serious threat for democrats. Even if republicans do not defeat, they will have to spend money. That is money that cannot go on the offensive in places like georgia and kentucky. The public and still very good. The map is expanding. Joining us. Ingly we will have more on how the primaries could affect the Midterm Elections with chuck gabriel, the founder of a partners. Pha partners. It is the worst ever outbreak of the ebola virus. Bloombergs yang yang is in washington, and no sign of this stopping at this point . That is right. A 930 deaths reported. Cases between new august 2 and august 4. Not included in those numbers, in additional death in nigeria and a man suspected of having contracted ebola died today in saudi arabia. British airways says it is suspending flights to liberia and sierra leone until august 31. This after Emirates Airlines halted flights to get any now we are awaiting the results of a geneva, to learn whether this is declared a outbreak of public concern. We will not get that until friday. The have convened a panel to look at experimental drugs, like the ones used on the two american patients. Joiningight, yang yang us from washington. Thank you very much. Our hans nichols is joining us from washington. He has been covering the summit this week. Flying in from his position in europe to help us out. Talk to us about what are some of the main takeaways from this for him forum . Yesterday was about investment and growth, and frankly a return on investment. Today it is more what you can do to guarantee stability, guarantee transparency. Nearly 50 hates of state heads of state are here in washington. No individual meetings, i should note. There has been a little consternation on that. The focus is on transparency in government and what president obama made clear this morning, the burden is on african leaders, african heads of state to start delivering on good governance. To talk. Not here just we are here to take action, concrete steps to build on africas progress and forge a equal partnerships that we sick. Tangible steps to deliver more prosperity, and more justice to our citizens. Good governance is a byword for lack of corruption. Newe were 14 billion in deals yesterday. 2 billion from general electric. But there was shockingly little on what might be done to hear and see those investments. That is the focus today. , what is the followup to this forum . All of theowup is business contacts created and forged yesterday. Yes, there is the official summit. Being made. E deals it is those individual contracts that will be the followup to start seeing growth and investment in africa. They are clearly excited about electrification. 70 of the continent is without power. That is a massive opportunity for some pennies like general electric. Companies like general electric. This is clearly an investors continent. Hans nichols, joining us from washington. Thanks. Coming up, the ambassador for palestine to the United Nations will offer his perspective on negotiations for a more lasting truce between hamas and israel. Bottom line on Bloomberg Television continues in just a moment. The Gaza Ceasefire between israel and the maas is holding for a second day as negotiations for a more lasting peace in cairo continue. Theriyad mansour is ambassador for the nation state of palestine to the United Nations. Thank you for joining me. Do you think that the ceasefire will hold . It will hold. Only for about 72 hours. We hope to go beyond that. We have a delegation in cairo. The delegation from israel, i believe, is in cairo as well. We are in negotiation with the egyptians to put the ceasefire not only in place tom of but to let it in place, but to let it be therefore a longer time and begin addressing the underlying causes of this conflict. It is clear from what youre saying that president abbas and his delegation are in control of this part of the conference, but hamas has a seat at the table. Are they invested included in the delegation. The National Consensus government reflects all of the among the palestinian people. We established that in april. Of the second of june, president abbas succeeded toforming a government represent the palestinians, including those of hamas and jihad and all groups. But, sir, hamas has been in since 2007. Aza is that part of the problem . Hamas as agroups see terrorist organization, as some have said, and not a legitimate government into tea they can do business with to have a lasting peace between israel and palestinians legitimate Government Entity that they can do business with you have a lasting peace between israel and palestinians . Group under the leadership of president abbas speaks on behalf of everyone, including hamas. It will stick to whatever we have agreed with the International Committee and israel. This government speaks on behalf of all palestinians and there are representatives of hamas in this delegation in cairo. Things that they want, are they mutually exclusive . Does the Palestinian Government under Mahmoud Abbas want Something Different than what hamas or jihad wants question mark we do not have differences among us with regard. O having ceasefire we respect to everyone. We are also united in the in restricting the siege of the gaza strip to allow our fishermen to reach 12 miles into the Mediterranean Sea where most of the fish are, a major source of food, to be able to access that, and to begin the process of reconstruction of gaza, among other issues. You bring up the blockade. From the israeli point of view, they are concerned about opening up that border and lifting the blockade because they are not be convinced it might just for economic, consumer reasons, that folks that might go over there and do israel harm might cross into the border. How do you respond into that . Those suffering from this palestinian8 civilians. There is a global consensus and calling for leading lifting that blockade. But as Prime Minister netanyahu has said, he is told reporters on various occasions, i believe his statement was, you dont live here, so you dont understand what is going on here. If anybody else is calling for the lifting of the blockade, you are not the ones who live in that area and deal with they are dealing with everyday. We live in that area. 1. 8 million in gaza. There are International Agencies who live with us. They know the situation. Are other International Associations including the International Red cross along and individuals working on behalf of government, particularly from europe and the usa, who are very active in the known situation in gaza. The civilian population is suffocating in gaza. That situation cannot stay as it was before this last conflict. It has to end. Sir, as you know, Prime Minister netanyahu has said the same thing. The civilian population in israel is suffering because of rockets being launched into israeli territory. You called them during the press conference. Terrorist tunnels being used not to smuggle goods, but weapons that can be used against israeli citizens. In his opinion, there is suffering on both sides. I know what he says, but lets look at the facts. The fact that we have close to 2000 palestinians killed. 85 of them are civilians. A great majority of them are children. Injured. 85 of them are civilians. 3000 are children. There is no justification for killing and destroying the lives of so many palestinians. Families lost at least three members of their family. They were wiped out completely. Half a million were displaced. 30 of our population. That is the reality of our people in the gaza strip. But mr. Ambassador, would this be happening israel said it launched this campaign to root out hamas. It said it could not deal with this. The Prime Minister said no country on earth would allow its citizens to be subjected to daily rocket fire without responding. The same Prime Minister is the one who struck the ceasefire deal with hamas two years ago, and that deal was in place and lasted for two years. Consensushe National Government was established and he declared war against it he does not want us to unify our homeland, the gaza strip and the west bank, including East Jerusalem. He wants us to remain divided and weak. Therefore he started this war after the formation of the National Consensus government, after he struck a deal with struck anuanced deal with a moss. And he says that hamas started this war. Two weeks was the International Community misinformed . No, the International Community did not know that. The last episode of this conflict took place in two fold. The first two weeks were in the west bank in which 13 palestinians were killed, or including the boy who was kidnapped and East Jerusalem and buried alive. Includingalestinians, 34 elected officials, were arrested. Into hell ford the people in chevron, jerusalem jerusalem, to show that president abbas cannot protect his people. Ok. Some smaller groups fired rockets and the war started in gaza. Norway is saying they might want to host a conference in september for palestinian reconstruction, for the areas in gaza that have been leveled now for the past month or so. How much money are we talking about . How much would be needed . The estimate is between 4 billion and 6 billion. We welcome all of those who would help us, including norway. Sir what are the assurances the International Community would receive the money would go where it is intended . I just came from a special meeting of the general assembly. They just heard the speech of the secretarygeneral. We build it up and did the war will destroy it. This time we want to build and we want assurances that it will not be destroyed again. , all right, dr. Riyad mansour from the United Nations mission to palestine, joining us. Thank you very much. Coming up what is on the menu . A look at last nights dinner for the african summit. Bottom line continues in just a moment. Two africanamerican winemakers were in the spotlight last night with their wine on the menu for the white house venue for visiting african leaders. Margaret, two of three wines from last nights dinner were from the africanamerican winemakers. How unusual is that . Hi, mark. It is very unusual. There are only a dozen prominent africanamerican winemakers in the country. We are talking more than 8000 wineries in the United States. This is less than 1 . But these are toprated wines going for 50 a bottle and a ofmendous honor for both these gentlemen. How do the wines at official white house functions get selected . These are the white coyote and the vision cellars. This is a solid young block pinot noir. Nc and often there is a tip of the hat programs. Or cultural interesting. The president has his own sommelier . It must be nice to be the top person in charge. It must be very nice. My invitation got lost in the mail. Margaret, thank you so much. 26 minutes past the hour. Our senior marketers corresponded julie hyman joining us with details. Good afternoon. Lets look at where stocks are trading right now. We are seeing more indecision in the markets right now. Energy stocks leading the gains we are seeing, but there are concerns about the canceled deals weve been talking about the bid forluding time warner. Lets look at take two interactive. The maker of grand theft auto taking a loss. Their next game evolve will be delayed until after the holidays. Shares are falling on that. And he has been looking to buy dish network. Revenue and line length analysts estimates. We will be on the markets again in 30 minutes. More bottom line is next. Welcome back to the second halfhour of bottom line on Bloomberg Television. I am Mark Crumpton in new york. Thanks for staying with us. Lets take a look at your headlines. Shares of sprint dropped as much as 20 after plans of a merger with u. S. Tmobile collapsed. Regulatory concerns outweigh the potential benefits according to a source familiar with the situation. Walmart will buy part of 15iance boots for about Million Dollars. Walgreens plans to keep its headquarters in the United States and not pursue a socalled tax and version strategy. And Russian Hackers are being blamed for stealing 1. 2 billion sets of usernames and passwords according to a milwaukee ipad based security firm. It is the largest known theft of personal information ever, but they did not name any of the companies that were hacked. That is a look at the top stories in the news this hour. Anight on charlie rose, roundtable with the president s of several west african countries. That is tonight at 8 p. M. And 10 p. M. Eastern time only on Bloomberg Television. Joining me, chuck gabriel, the ofounder and president dependent research firm, Capital Alpha partners. Good to see you. What do the primary results tell us about the current state of the Republican Party . It is interesting. The tea party has a presence, but nowhere near the edge it had a couple years ago. What is interesting is in the most important marquee race yesterday, pat roberts, the incumbent republican senator in kansas, won reelection over a , miltony challenger wolff, a radiologist. Meanwhile in michigan, you had two incumbent, tea partybacked republican candidates, sitting congressman, a split. Ne lost. And o the only question here will be there are two things juxtaposed against each other. One is, the message that republicans have positioned themselves as good as they can. A do not have any exotic candidates, as you might say. Is, if teauestion Party Supporters are not as motivated, might republicans have the motivational mismatch that a lot of people have been counting on for november . You just talked about senator dating backy his challenger. He called the divisiveness intraparty fratricide. The tea party does not view it that way. They view their opposition as principled. Will they back off in favor of control of the chamber this november . That is an important weston. That is the motivation question. Will tea party enthusiasts show up and vote for a establishment republican nominees . Republicans have to win at least six saves. Everything points to the notion they will, mark, but we shall see. Republican needs everything they can bring in a couple of those really core secondtier races like in arkansas and louisiana, north carolina, and alaska in particular. It is a very important picture. I am speaking with chuck gabriel, the cofounder and president of dependent research partners. Al alpha what do we know is the message or getting people to the polls key . It probably will be more a message of getting people to the polls. This will tend to favor republicans. In midturn Midterm Election cycles, the electorate is older,y whiter, typically more republicanfavoring. For a democrat, it will be hard to bring the kind of electorate we saw in the election years of when they brought out a lot of young people women, minorities, etc. Republicans look like they have an advantage now and if they do not have that advantage, it will be very tight and they might fall just short of taking the senate. Should the republican establishment be celebrating or is it too early . It is probably a little too early. Lamar alexander has to undergo the last of the major incumbent races on thursday in tennessee. He probably faces a tough not as quite a tough a race as pat roberts did yesterday. It is 90 days out from election day. Republicans can just about make the claim they have played mistake free football throughout the primary cycle. We have about a minute left. These primary results, where do they leave democrats were the slim majority could be challenged question mark i think democrats are probably frustrated. When you look at the fact that republicans have had a hard time knocking off democratic incumbents in the last two races. Harry reid survived, Claire Mccaskill survives, bob bennett colorado. N one of the reasons republicans nominated on electable candidates. They have not done this in the cycle. The democrat incumbents are little bit like Butch Cassidy and the sundance kid. They kept saying, who are these guys . The republicans keep coming and they have a very good shot at taking the senate. Thanre than even . More 50 50 chance question mark 50 50 chance . 50 odds. Lver has we are very cautious. It will become a factor bet around labor day. We are inching up to the redline. Interestingly enough the really important races could be colorado and iowa, two blue states where republicans have opened up opportunities. All right, chuck gabriel, cofounder and president of a partners during us from washington. Always good to get your perspective, thanks. Thank you. Up next, unexpected moves in the media world as Rupert Murdoch drops his bid to buy time warner. More in just a moment. It is time for todays latin america report. Puerto rico allowing corporations to file for a group c protection with benefit of holding of debt. Extending the chapter nine benefit to the islands could boost the sales tax fund. Puerto rico corporations have a 73bined debt burden of billion dollars. That is your latin american report. Plenty of business in the media today. Paul sweeney from Bloomberg Intelligence joins us. Bloomberg intelligence provides unique insight on contacts, industry and all of the factors that affect business. That is a mouthful. To get to the news. Hisrt murdoch, he withdrew bid to buy time warner. Why did he pull out . I think the market was telling him it had to be closer to 100 million 100 billion. That would put a lot of pressure on his stock, and also on his balance she. He would have to take on a lot of debt. It would put his Credit Rating at risk. I think he stepped back and said the price i have to pay, this may not be the right time. Time warner earnings today, earningspershare revenues like. No surprises there . Know, generally a pretty inline quarter. The Cable Network is nascar, there are ratings problems there. That is part of the business. You have your ups and downs. Hbo is doing really well. Their film and Television Production businesses are doing very well. The company very specifically on the call said they were not going to address the potential deal with fox. They just want to focus on the fundamentals. And their fundamentals are . Prettyr fundamentals are good, but i could just see investors clicking their phone during the part of the call where they said they would not talk about the deal. The strategy for time warner to fend off fox is to say, listen, we could create a lot of value dutch actually a lot of value actually we have created a lot of value for shareholders. Shareholders gave them the benefit of the doubt because this Management Team has delivered over the years. Management is going to take that good will and try to operate for the next several euros. So, the message is absent this deal with fox, they are still in pretty good shape . They are in great shape. They have been skinny in down the company. They spun off aol. The Time Warner Cable assets are gone. You are left with three highgrowth businesses. All good businesses. You just mentioned aol, reporting its latest earnings today. How was there quarter . The quarter was actually very good. Ais is the sixth quarter in row aol has shown improving advertising growth. That is the story for aol. It is also the story for yahoo , but yahoo has not been able to deliver that topline growth. Now the question is, lets start to see greater profitability going forward. Bob iger was on with my colleague Jon Erlichman out in los angeles. They still have challenges. What are they . The challenge for Disney Disney is in a great vision. Nobody talked about them having to do a deal in terms of fox and time warner because they are in such a good position. Did not even,. Their biggest is this is espn. But their most notable challenge byfrom fox sports one, on fox. For the first time there is a viable competitor to espn. What does that mean . Higher programming rates they have to pay and maybe crippling the profitability of espn. That is not a bad thing though, is it . They will up their game. Or attempt to. They will up their game. They had a lot of wall street analyst investors up to see the new digital studio. They continue to invest a lot of money in espn. They continue to own just about every major sports franchise rights, with the exception of the nba. All right, paul sweeney, Bloomberg Intelligence, joining me in studio. Thanks very much. Up next, a manhattan Attorney Says he is actively investigating u. S. Banks. The very latest when bottom line returns in a moment. Manhattan District Attorney Cyrus Vance Says he is actively investigating u. S. Banks. He spoke with Erik Schatzker on rik joinsakers, and e me now. The sanctions against bnp paribas how did he come to a number . That is a question i announced cyrus, mark. People wonder, how do these people, these regulators and it is not just the manhattan attorney general. There is eric holder, obviously the attorney of the United States running the United States. Ofbillion sounds like a lot money, doesnt it . It sounds like a lot of money to me. It sounds like a lot of money to bnp paribas. This is what he had to say. It is not about putting businesses out of business. It is about the right amount of penalty for the crime involved. A 9 billion fine and significant restrictions and transparency in how they are doing the work going forward, we felt, was the right result. Mark. Re is a formula, the regulators and prosecutors do not Police Numbers out of thin air. And the purpose of a 9 billion settlement is to act as a deterrent to future wrongdoers. Junior knowsvance this criticism and you have heard it, t a while. It is a drop in curb is incarcerated. How did he respond to that question mark excellent question as well. B. N. P. Paribas has in excess of 2 trillion in assets. Did have to take a charge on the order of 6 billion, it does become the cost of doing business. Can it function as a deterrent if no one goes to jail . Here is what he says. Have been very aggressive. I would not predict what will happen in the future and if individuals will be charged. I can say this. I have said it once, so forgive me. We weigh each of these individually and very, very elite carefully. We look at her deterrence. We try to strike the right balance. It is not a science. It is an art. But i think were making progress. The truth of the matter, as long as individuals are not helpless possible, it is a corporate problem. And not only a corporate problem, but a problem for the shareholders. Critics of the system say, fine, you get to put a trophy on your shelf and say, i shook bnp paribas down for 9 billion, but it is 9 billion that has to be paid by the shareholders. What happens to this money . That, too, is the subject of some concern. 9 billion dollars is a lot of money. In this case, some 3 billion, three point 5 billion is going to new york state coffers. That is all generalpurpose money. Almost 450 Million Dollars is actually going to the d. H. s office. That is a great deal of money for any one man to marshall. To do what . This case he is going to study the legal gun market. He is going to use a fiberoptic network to better track criminals in new york city. He will upgrade the office space. I think we can make a fair assumption that the office space is not too great given budget cuts that have been imposed. It does raise the question whether perverse and symptoms do not begin to creep into the equation. You know as the manhattan da or the governor of new york state, with new if it helps to close the budget cap or fund the office . Sure, you would. It is a reasonable point of view perhaps. Erik schatzker, thank so much. Stay with us. Another check of the Market Movers on the other side of the break. Bottom line continues in just a moment. At the latest headlines at the top of the hour on Bloomberg Radio and streaming on your tablet and bloomberg. Com. That does it for this edition of bottom line on Bloomberg Television. I am Mark Crumpton in new york. Thanks so much for joining us. On the markets with julie hyman is next. I will see you tomorrow. It is 56 minutes past the hour. That does indeed mean that bloomberg tv is on the markets. I am julie hyman. Just across the board the s p with the biggest gains of the day of of 2 10 of 1 . We are seeing a lot of canceled deals and that is taking its toll. Are looking at socalled living wills, to see the camp after bankruptcy without damaging the wider system. Drawingthem back to the board and essentially gave them a failing grade. Joining me on these living wills, all willis. We did have bank of america coming out and raising its dividend. What do these living wills achieve . What does this process achieved . Achieve . The living wills are there if the regulators have to close down these banks. Even for a small bank it is hard to close down because they did not know where the dead was, the contracts were. This came out of the crisis. The banks show the regulators how to unwind them. Is, how do you unwind a bank of america or citi in three or four days . It is a nice exercise, but i dont think you can. Are too big banks to fail, they will not be unwound. It is a nice exercise. But they would have to go back to hire more consultants to get the regulators to accept these legal these living wills, and in the end i do not think they will ever be used. Toyou think this is a lever nudge the banks toward breaking up so they are not too big to fail . No, i do not think that is what the regulators are after. They are after the academic question, if i had to close down bank of america over a reday would i do itow threeday time period, how would i do it . I do not know if the regulators care with are there broken up up or not. I know the investors would eventually go down that path. But the regulators have to decide they want to regulate to the point that we do not have the same crisis we had in 2007 and 2000 eight. I am curious, from an analyst point of view, an investor point of view, when you look at the size and complexity of these banks, is smaller better now . Is that factoring into your decision . I think the regulators think smaller is that her. For the investor though . To me, yes. When you look at these big banks, you do not know how they are working. It doese wells fargo not have a lot of Investment Banking and whatnot. When you look at the jpmorgans, the bank of americas, you do not know what is going on. It i do think these things will have to be broken up. Down the road investors will realize there is more economic value, will realize there is more value in a Small Institution versus a big institution. Paul miller, thanks a much. We appreciate your time. We will have on the markets later. Street smart is next. Show, the to the big most important hour of the session. We have 59 minutes until the close. Stocks edging higher after touching a twomonth low. I am trish regan. Street smart starts now. Coming up, the Ukrainian Military is close to kicking the remaining russian backed separatist out of the country. The question remains, what will Vladimir Putin do about it
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