Of the aig trial in washington. And more coming up in just a few minutes. First, lets look at the top stories we are following. Prove from texas to ohio and back before being diagnosed with ebola has been released from an atlanta hospital. Vinson is now virus free. She worked at a nurse at the dallas hospital and cared for thomas duncan. Who was quarantined at a hospital in new jersey after treating ebola patients in west africa has returned to maine. She greetedials say to be quarantined at home. South koreas spy agency says it has all the mystery of kim jonguns sixweek public absence. A foreign doctor operated on kim and said he removed a cyst from his right ankle. Thats according to an opposition lawmaker. Return because of his obesity, smoking and heavy public schedule. New and used auto retailer promoting reporting earnings that beat expectations. We spoke with mike jackson, chairman and ceo of have notne prices impacted the total number of vehicles sold. Definitely impact the type of vehicles people by despite the fact that people say fuel efficiency is the number one issue, when gasoline prices go down, we see an immediate shift towards larger vehicles. Here is a look at how shares are doing this afternoon. P 5. 8 macys will open its first location outside of the United States in 2018. A four level store and the united arab emirates. The location will be part of a 3 million squarefoot development in abu dhabi. The obligor be stores will offer merchandise and ill be on its similar to the Shopping Experience in the u. S. The owners of Madison Square garden are considering a plan to split into two companies. One would house msgs sports games and cable network. The other would be an entertainment business. We talked with the founder of rng sports. S ou the economic value being placed on these franchises. Worth . Uld that be it is not being housed correctly in the public market. Split it up and separate it. Lets take a look at how the shares are trading. They are up nearly 11 . At the top stories we are following on this tuesday. The aig bailout has reached a pivotal moment. Has said the governments 2008 bailout of aig was unfair to aig shareholders. The government gets its chance to respond. Peter cook is outside the court a federal appeals federal claims. Hes going to wrap up his portion of the case as in his today. Its been three weeks straight of the famed litigator making the case on behalf of hank greenberg. The governments bailout, well necessary for activists come of the terms of the bailout unfair to shareholders. The amounted to the taking of private property. They have made the case the Federal Reserve did not have the Legal Authority to take an equity position in aig. And specifically that the terms of this bailout were different then those being offered to banks. Shows this was the government going to far with aig. He has been making his case for 21 days. Carefully plotting and charting this course. A notion that a lot of people have trouble with. It saved these shareholders, saved the company. They say the key question is the terms of the bailout. It seems to have had some sway over the judge in this case. Single federal jerk who has gone out of his way to defer to the plaintiffs side federal judge who has gone out of his way to defer to the s side. F you will hear from the government attorney today. Celebrating the fact that the government stepped in without so, they would have been left without nothing. The Federal Reserve did that the authority have the authority to take the equity position. This harsh terms on aig were so other banks would prevent moral hazard. They did not want to encourage that. Thats why the terms are so harsh. Hank greenberg himself on their witness list. Do we have any idea when this will wrap up . The expectation is that we will have the score more weeks two more weeks of testimony. It could be several weeks, several months before this case comes to a close. Everyone expects there will be an appeal. This could go to the supreme court. Peter, thank you. Coming up, a slowdown in home prices. Us whenphries will join bottom line continues in just a moment. Chairman and ceo of talking about the Housing Market. He was on in the loop with betty liu. More on the Housing Market. House prices in 20 u. S. Cities rose at a weaker pace. Borrowing standards remain tight and wage gains failed to accelerate. Im joined by stan humphries, chief economist with zillow. Lcome back to bottom line markette was the housing is not normal. Is that your take . We are seeing real moderation off to the fast pace of games two years ago where that was fueled by in the hole, nation of low rates and a reset and prices and low inventory. That combined to create fast appreciation. We are transitioning to a more normal, slower pace. It is lower. Has it turned the corner . The trajectory looks like we expect more slowing. If you think about home values appreciate at 3. 5 per year they have been appreciating as much as 810 per year. We have wanted them to slow down. He welcomed of element. Its a welcomed development. We expect them over this year to grow it 3 . Home values are still going to be up. Sellers years of home calling the shots, are we seeing the scales start to balance for the buyers getting a say . We are. Moree stunned to see buyers facing less competition they are in the market with investors. You see that in terms of more inventory than last year. Sellers are having to discount their homes more now than they did last year. Ago aboutke a moment the gradual appreciation and property cost. Our investors leaving the market or are they taking a breather until there is demand . The Institutional Investors have slowed the pace at which they are putting new money to the marketplace. The prices are more expensive. They are putting the money in more markets like atlanta and chicago. They are not selling. They are not selling the assets they bought over the past few years. There is no rush for the exit. Cities showed a yearoveryear gain. Miami and las vegas had doubledigit increases. What is driving the increase we are seeing their . A story of extreme house affordability. Home prices fell by 5060 in some cases. Hasthat the recovery proceeded for 23 years, people have been coming back to the marketplace and home prices have responded accordingly. We were seeing that in phoenix as well. Phoenix is seen even higher home appreciation that las vegas. It has cooled dramatically. On the other edge of the spectrum, wile see cleveland. The midwest has had a weaker housing recovery. That horse shoe shape in the u. S. Has had a rebust thats robust recovery. That horse shoe shape and the u. S. Has had a robust recovery. A lot of the buyers are in california. Places like cincinnati, akron and dayton are having to boost their recovery on the backs of their own residents. Janet yellen has said in the past that the Housing Market continues to be disappointing. The fed can influence Mortgage Rates through monetary policy. Other than that, are their hands tied . They are to some extent. Low. Have kept rates pretty people have been refinancing. The number of people who can thatnue to refi mechanism is running on its rails right now. There are not that many people left who can refinance. You are in negative equity or your income is such that you have a low documentation mortgage. We have about one minute left. There are new rules in place to reduce the risk that banks will have to repurchase bad mortgages from fannie mae and freddie mac. Are those changes enough to relax credit standards and get potential firsttime buyers up the sidelines off the sidelines . Its not a bad thing. Loosening the credit standards is not a bad thing. Fha has been offering similar types of mortgages for the past several years. Its not a new product in the marketplace. The cheap issue cheap issue has to do with putbacks and the reps and warranties issues. They are afraid they might get stuck with the mortgages beard bank. Its really just something that will have to heal. How doesnt zillow think housing will shape up at the end zillowyear . Does think housing will shape up at the end of the year . We believe we are going to see positive home price appreciation. About half the pace of the past 12 months. Look for 3 gains in real estate. That is a good thing. More of a historically normal pace. Stan, good to see you. Up next, matt miller has the latest on the markets update on trading. Amazon needs your help. Julie hyman will explain. I seriously think that move is going to work. You have t its a tell of two companies. Walmart surveyed kids to help curate its top toys list. Amazon went to the toy buyers, the moms. They harnessed product reviews to compile a list. Julie hyman joins me with more. How did amazon go about doing this . Necessarilyt disclose to the moms immediately that they were reviewing it for the toy list. There is a facebook list for amazon moms. Amazon sign up for an mom membership. What amazon did was on that facebook page, put out to moms a list of various come in different toys and games they might purchase for their kids for the holidays. They reviewed the various items and amazon ended up using those reviews to compile a list of moms picks. Amazon obviously some thought when into this. Went into this. For anyone who uses amazon, it can be somewhat overwhelming. This season alone, amazon has 1000 toys and games. How do you pick what to get . Any kind of help can be helpful to parents and helpful to amazon. Speaking what to push, Fourth Quarter, looking at Fourth Quarter right now. How much are they forecast to spend a line for the holidays . In online1 increase spending over the holiday season. Survey found that 56 of shoppers plan to do at least some of their shopping online. Onlinewho plan to shop could spend 16 more than people shopping offline. This will be significant, not just for amazon, but also for retailers that do some of their business online. Malls in september is down 3. 1 . The foot traffic. We of these indications that will continue to see growth of online shopping. , thank you very much. It is 26 minutes past the hour. Bloomberg is on the markets. Matt miller is here with an update. We are looking at gains across the board. 75 . P 500 up about up 1. 3 . Q we want to point out a couple of individual movers. 8 tter shares down more than. After the Company Reported earnings that were below estimates. Ohls not faring much better. Its worst day since november of last year. Drop. Ing a 1. 4 growth news. Od we are back with more bottom line. Welcome back to the second halfhour of bottom line. Thinks first thing with us. Time for the commodities report. Thanks for staying with us. Oil prices holding above the 80 mark today. Traders waiting for the latest supply data. Expected to show another gain. Forecast. Double the if that happens again, traders and site will prices could get hit hard. Just aboutnow down 18 yeartodate. Barclays the latest two its slach its to slash its forecast. They are not expected to cut back on production. We have shares of airlines, railroads. Hitting record highs. Low prices of oil already impacting car and truck sales. Gasoline prices at the lowest in four years. Oil producers thing if prices continue, they will be fine. We could tumble below the 80 mark and then some. Weve got Oil Investors waiting on the data and Gold Investors waiting on the fed. Gold had a reaction settling back to almost unchanged. Its all about the fed right now. Traders are in a wait and see mood once again. Palladium futures rising foreign day. D eighth straight thank you. Detroit filed for bankruptcy back in july of 2013. The largest municipal bankruptcy filing in u. S. History. In debt. 18 billion they reached a settlement with the only remaining organized opposition. Theing me from chicago is senior director of standard poors. Welcome back to bottom line. Nice to see you. Supporters of the bankrupt the plan say its just what the city of detroit needs. At how high a cost . When you look at what they the been able to shed from balance sheet, the balance sheet, they are going to get rid of a fair amount. The real test is going to be will they be able to balance. To becomecess seemed a battle between pension holders and bondholders. Had they set a precedent on how those competing interests will be dealt with . Its difficult to say what we arecedent hoping this does not set a precedent. The pensioners made out a lot better than the bondholders. Any precedent we might see from a rating or credit perspective would be if other cities do the same thing. They see they could enter into bankruptcy and cut their bonds by up to 85 for the participation certificates. Lawyersits bankruptcy approves the judge plan and they will try to and pick up to buy things giving. Is that enough time . They do have that financing in place at barclays. They are moving forward at doing that. That would be a key part of being able to exit from bankruptcy. Overtroit plans to spend 1. 5 billion. And want to remove blight improve city services. Thats a ton of money for a city thats trying to regroup from decades of overspending and mismanagement and corruption. Agenciesredit rating be assured this is not the start of another cycle . Thats a big concern we have. You look at the projections they have going forward, it looks chipthey should be able to on at some of those infrastructure types of needs. It certainly will be difficult for them, especially if you cut off yourself from being able to. Ssue general obligations in michigan, you would have to took thats what those holders are getting . 34 on the dollar for their payment. Finding buyers would be difficult. The whole thing might be a significant challenge for them. As an pss i sent p ss an about a aa minus. Their average has been about 250 million a year. Are you concerned that all the other cities with financial problems will opt to file for bankruptcy instead of employing fiscal discipline . Thatere is some concern that could happen. We have not seen a rush to that happening. Detroit filed a year. We have not seen an uptick since then. We dont view it that there is going to be e greater stress. We have about 30 seconds left. Bankruptcy infor july of 2013. Are you surprised or concerned at the speed with which this process has played out . I am a little surprised. We did not think it would be so fast. Being informed by other bankruptcies taking a lot longer. It could be helpful for the city to web gone through that quickly. They have been focused on those bankruptcy issues. Costsnge their operating is what they will have to turn to next. We see it as a challenge for them. Jim, thanks so much. Jane, thanks so much. Coming up, we look at how xpensive bottom line continues in just a moment. In early september, get taxi announced it would be offering a 10 flat fair to anywhere in manhattan. Which haso uber raised funding that values the company at 17 billion, gettaxi has only raised 10 million. They discussed the competition with uber. Its an Amazing Company and you find the similarity. We are not competing with them in china, latin america or other places. The game where we are right now in new york equal in terms of financing. We have enough financing to offer we offer something people are happy about and gives for people to use us in new york. Are you going to continue with next year . We will consider that. We will see. We like to see consolidation here. Is that something were likely to see . I dont know. There are 250 Public Telecom companies. In transport, only three. I dont know. Its big enough for all three to be super big. Are you going to need to raise more money to compete . Rates and with the the growth we have, we want to tinue to the growth it is time for todays latin america report. Brazilian stocks rallied after president the president s reelection. Strengthening from a nineyear low. Assets plunged yesterday on concern that the president of currency lost the 12 in the three months. A group of italian investors seeking payment of their default bonds lost a bid to collect a portion of 539 million. A judge overseeing the bond litigation here in new york rejected the claim, ruling sovereign funds located outside of the u. S. Are immune from seizure. Is alsoof hedge funds trying to receive payment for their default bonds. We are less than one week away from midterm elections when race to watch, the senate seat and New Hampshire. The race between Jeanne Shaheen and scott brown is still a dead heat according to a cnn poll. Among the voters interviewed, brown pulled 49 of the vote. The polls margin of error is four percentage points. Now. Regan joins me i have some special insight. Its surprising that its this close. Jeanne shaheen is a New Hampshire girl heard she has lived her entire adult life there. Her husband has had a very active life. They are well known in new areshire and they identified with two hector. You have scott brown coming from massachusetts. Staters are not wild about those from massachusetts. Scott brown is coming in from massachusetts. One thing he does have, living the first three years of his life in New Hampshire. He is a home there. That bodes well. You have a lot of people in New Hampshire that tend to be more liberal than conservative. A lot of people who have come up from massachusetts and are this is a state that is very much in play. It is not a voter you can really pin down. They tend to be fiscally conservative, socially liberal. Live free or die. We will see on election night. More on the midterms coming up . I will be speaking with Martin Heinrich of new mexico and jeff flake of arizona. Interesting story with these guys. They did a reality show on a Deserted Island together. They spent a week there and had to duke it out and Work Together. In effort to show how republicans and democrats can Work Together and overcome all kinds of bipartisanship. Harry reid and Mitch Mcconnell . Next, is it the skateboard of the future . You know what im talking about. A workable and profitable hover board. Hoverboards were the ultimate fantasy toys for children of the 1980s after one was spotted in the second back to the future film. Now, a californiabased startup has created its own version using the latest in magnetic technology. Take a look. Marty mcflys hover board is a 1989 film had kids captivated the world over. Hoverboards. Now, the dream is a reality. Sort of. The hover board uses technology called Magnetic Field architecture. Magnets inside the board create a field that allows it to hover about a niche above nonmagnetic services. The writer has to lean in a particular direction to convince the board to follow. This kind of tech is used in other places. Trains use a similar system but are much larger scale. Floatghspeed trains above the tracks to hit up to 300 miles per hour. This is just a prototype. The hope the Kickstarter Campaign will help generate bigger ideas for the technology. In the money to make them a reality. The designer hopes his ideas will be used at preventing buildings from being damaged by earthquakes. Theveloper kit containing information can be yours for 299. A fully working board will set you back 10,000. Millions of fans will be hoping they get to this idea off the ground. Stay with us. Another checkup the Market Movers is on the other side of the break. Bottom line 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. Think you some for joining us on the markets is next. Thank you so much for joining us. On the markets is next. Bloomberg television is on the markets. We want to get you caught up on where stocks are trading just an hour ahead of the close. The highs of the session. The s p 500 up three quarters of 1 . Adding 120es in th points. Tech stocks gain momentum. We had disappointing news from certain tech stocks, i. E. Twitter. We are keeping a nine homebuilders today. Keeping an eye on homebuilders today. Rising at a weaker pace in august than one year ago. Joining me for todays sector as far as your unique perspective, what is it look like . When you look at the month to month data, theres always volatility. Its a market that really has not moved much. To ten buying new properties all around the country, in every market. The market is still good, just not normal yet. Its not back to its normal pace in terms of sales per month or the normal price appreciation. It is still time to be buying. Are we still at a point where you can back the truck up and buy stuff . Is that how low prices are . From a boaters perspective, theyre still looking to build their business from a builders perspective, theyre still looking to build their business. Whats interesting is the balance cycle. With regards to those fed meetings, low Interest Rates have a lot to do with this. They were expecting people to be building more homes. , warren Interest Rates buffett is shocked more people are not buying mortgages. Rates are still at historically low levels. You still have strict mortgage lending which is keeping buyers out of the market. Entry levels having problems. There are student debt issues. Which areas are doing the best . Are we looking at an i environment where multifamily homes are up . Its difficult for people to get into the homeownership market. Movinge younger ages into rental properties. We were thinking a few years back that family creation was going to help with this Housing Market. It has not happened that quickly. Dont people young people are not having kids. This has been going on for the past seven years. What we have to look at to propel the market forward is job growth. Following the recession, drop goes job growth has been led by lowwage industries. There has been a pretty strong correlation between the two. Street smart is up next. Hello and welcome everyone to the most important hour of this session. We have 60 minutes to go until the close. I am trish regan. This is street smart. Ware waiting to hear from president obama speaking on the white houses ebola response. Well bring you those comments live as soon as they happen. Plus, stocks rising right now now and earnings in consumer confidence. And we are counting down to earnings out of facebook. Ill be joined by the c. E. O. Of aetna. Street smart starts now