From around the world, full coverage of the stocks and stories making headlines today. Special cost on raising a child. Examining the parttime employee challenge. We are fighting where we are where Islamic Fighting continues. Do we know who is in control. The Kurdish Forces are completely in control of the dam. About two kilometers on the edge of the dam of lately filled with explosives and will be slowly clearing their way through that to make sure the entire area is safe. They say there are no militants there at the moment. Lex how is this affecting the critics dan economy. He says he has the hardest job of anyone in government at the moment. So little money coming in and so much money going out. Not getting any of the share they normally get. They happen to have more than six months. Having to pay a lot of money toward depeche mode military forces and 600,000 refugees in this part of iraq really sucking up resources. Say they are desperately seeking cash. About the Foreign Companies operating. How are they reacting to this . Have beenf the ones i speaking to over the past few days have been pulling nonessential personnel out of the region. Three of the Major Oil Companies i have spoken to have said this miss as usual for the most part. They are still refining and exporting as fast as they can. Aq on average saw 3 Million Barrels going out through the door. Nervous. Panies are leaveconcerned if they do , this will have a devastating impact on the local economy. The sense from the people there . What are you hearing . It is mostly Business Owners i have been speaking to. Theyre are very concerned about the uncertainty. Beenact that the u. S. Has involved with the heavy airstrikes to the west of here toward the dam in particular seems to have given people confidence that things could return to normal and the islamic military state will be kept for their way. Raq. Oining us live from io thank you so much. Israeli and palestinian officials strode Little Movement from entrenched positions hours before a truce was set to expire. Egyptian officials are reporting a final day of talks in cairo in an effort to build on eight days of quiet. Hours before the truce was set to expire, the outlook appeared moving. For thes allowed opening of the seaport an airfield in gaza. Israeli Officials Say those can only be dealt with in a final Peace Agreement with the palestinians. Coming up, the biggest auto supplier in north america. We will talk to the ceo of Magna International about the soaring stock price stopped rice, m a strategy in the plan to affect attract more businesses. Stay with us. Welcome back. Line onbottom Bloomberg Television. I am Mark Crumpton. Magna international is the largest auto supplier in north america. The Company Reported a. 3 billion in revenue last year and has about 120 8000 employees globally with headquarters in ontario. Donald walker joins me now from the toronto newsroom. Welcome. Thank you for your time today. Thank you for having me on the show. Your stock has risen more than 38 this year, more than in the s p 500th index. Do you think your stock is fairly valued . We have been doing pretty well on performance of the stock over the past two years for a number of reasons. We have been increasing earnings. We have been breaking even and more acceptable levels of return and a change in the past number of years in the structure of the company. Cashwere doing with the and Balance Sheet strategy. Everyone has their own opinion. We are about average where our peers would be right now. At a. 8 . Margins are the auto sectors margins as a whole are nearly 10 . How have you been able to show good Margin Expansion and are there other opportunities to boost margins at this point . Always look at margins. We tend to look at internally the return on invested capital but we have been making headway in improving margins in europe in the past three years. We gave ourselves a fiveyear target over half of north america and are on that target. We also go through seasonality so it will go up and down per majorr but we have initiatives in getting worldclass manufacturing and bringing a lot of new, Innovative Products to the customers. If we can continue to execute those major priorities in the company, as well as the Balance Sheet to buy back a number of the shares, i believe we will continue to make headway in the margin. How is the market for mergers and acquisitions right now. Go are there more strategic it goess out there . Up and down. Right now the stock market is near a high as you know. Anybodys guess whether it continues to go up or not. I think the valuation expectations in the automotive sector are fairly reasonable. A foothold in a new product area or technology we launched or geographic footprint or entry to customer on a global basis. We continue to look at acquisitions. We will not overpay but think there are good opportunities out there. Lex do you have a ceiling on price . We have a very strong almond sheet. We are generating good, free cash. We have an opportunity to put this to work by making a good acquisition and have a lot of ability to put that in the market sheet and put that in the cash we have. I am speaking with donald walker, ceo of Magna International, largest auto supplier in north america. Are there parts of the portfolio that do not fit into the longterm planning and parts you would like to strengthen through acquisition . We have an internal product strategy that we do not really talk about two employees but about 35 billion in u. S. Dollars per year. We have many different products. We are the most diversified in the industry. There is more we want to strengthen and add technologies to then get out of. We are always assessing where is the best value longterm. Your tax rate is consistently below 20 . With this factor into the m a strategy and on a related note, what is your reaction to the debate in washington over possibly preventing American Companies from reincorporating overseas to prevent paying u. S. Taxes . We are pretty transparent what we do from a tax standpoint. When we look at acquisitions we look at technology, customers and how it aligns. He will take everything into consideration that will not let the tax strategy drive the acquisition. To the extent we improve operations that have losing divisions, obviously that falls on the bottle minds are really depends where we are making the money under pretty transparent for what we do. Thaty thoughts about that has been raging in washington . I am not up to date on it. Fair enough. Your shareholders are all marched almost all canadian. What are you doing to introduce to retail and two larger investors . We have been talking to investors down in the state. It has conduct up and down over the years that have been talking to a lot of shareholders that are interested in the stock because we have done everything we need to do from a Corporate Governance standpoint. We have one class of shares and the global company. We are seeing a sick ethic and amount of interest from the american investor and think that will continue. Donald walker, the ceo of Magna International. Joining us from toronto. Thank you were your time. It has been a pleasure. Thank you for your time. Daycare, those bundles of joy will cost you a bundle of cash. The cost of raising children when we continue in a moment. Grading u. S. Colleges is testing the u. S. Department of education. President obama asked the department to create a system to rate more than 5000 campuses that the department has delayed unveiling the draft until fall, months later than planned. Janet lawrence has been tracking the story and joins us with more. Why did the president called for a system to grade the colleges . He is concerned about a couple of issues, namely access and affordability and outcome. He wants parents and students to get a better understanding if you go to the college will cost you this much and this is the percent chance you will finish it. Are they being graded on . We do not know exactly what. They will not unveil a draft until later this fall. He said about a year ago it was mostly he was mostly interested in issues of affordability, outcome, such as average student debt when you graduate, and also, the percent students that colleges are taking. Talk about challenges in the making him in the making of putting together this system. I mentioned it is behind schedule. Thehe department once complaints they have gotten. Colleges say they are concerned about metrics such as salary. How do you measure that . Take womens colleges where you may have women leaving the work wars or working part time 10 years after graduation. How do you factor that in . Very complicated and do not want to penalize schools for taking lots of low income students who are maybe not as well prepared. Some colleges like this. Some colleges are not ruled. What is the breakdown . A lot of private colleges are concerned more so they and public. They have to show information to state legislatures or states to get money for appropriations. So they are more used to it. Have a colleges have never really been evaluated in this way before. This will be a little bit different. This would give students and parents apples to apples metrics to compare them. The president of Weaver College says it does not do enough. Why . A Public College in utah. He said the public should be held responsible. He thinks the Rating System will not do any harm at the way it is structured, colleges should be held accountable. To be continued. Janet lauren, thank you so much. According to a government study, and middle income families cost to raise a child in the United States is on the rights. For a child born last year to age 18 estimated to run you a quarter of a million dollars. Here to discuss this, alan bjerga. They are married and expecting their first child. Congratulations to you both. What does this years reports say and were there any surprises . It depends how you look at it. Raising a child will never be cheap. 245,000 for the first 18 years of a childs life. Expenses inst raising a child, what are they . Secondarily, talk to us about variants by situation. The biggest expense and has been since 1960 is housing. 30 of the expense rate their. You get variation. You have seen the cost of daycare and childcare go up a lot, along especially with more affluent families. For lower income families you have a rising dependent on food increases. You have seen increases on food inflation. Since more of those families have someone working at home, childcare not as much. Health care has been a big expense. Eight percent now. We have seen that moderate a little bit with the flow costs to health care in general. Mentioned, you are expecting your first child this fall. Since you are going to be a new mom, talk about the cost you find most daunting . I think the biggest challenge for us goodto be able to find daycare that is a reasonable price and good quality. Education. Me we may want our child to speak chinese or spanish. Right now our life is dedicated to looking for a stroller. That is enough of a start. 245,000 is the National Average but i would think it could very a lot by situation. What sort of cost range can parents expect . Secondarily, as soon as the interview was over, are you asking for a raise . That is between myself and employer which we all share. It really does matter what part of the country you are in. If you are in overall area tends to be less expensive. According tore region. The most expensive as northeast. If you adjust for inflation, adjust for high income ratios, you may find up to half a million ways to say you love your child. The 245,000 mark, were you surprised to hear that as i was . Depends on the region you are in. Some areas can be less than that. Also, looking at a two child family. The first trial tends to be more expensive. Matter which way you slice it, the chunk of money. Are we mostly talking childcare . What kind of chunk does that take out of a couples earnings . It all depends frankly on how much the couple is making to begin with and where they live. They have their decisions to make. There is no really average family. Ametimes they may spend for nanny and while others would send to childcare. The cost will vary between chicago and new york or d. C. The cost may be very different. In theother surprises report . Talking to the usda economist who wrote the report him he was noting what they are family spend a lot more because they have more disposable income. He talks about the difference between summer camp or sports team or says going out and playing in the yard. There is a lot of variation in terms of what you can spend on your child. Everyone has the same aspirations. It is just the different approaches and sometimes sacrifices from a career or vacation or what sort of home you are in. The usda does not really factor in the cost that relatives may add. Does not go into university education. Maybe because that would be too depressing and what hurt the birth rate. It is a very complex situation. What this does is gives you an overall picture of what does this look like in terms of the cost of raising a child. Generally used to cut to a childsupport payments. This is where people can see where the temperature is now. Do couples think about this before hand . Isnt one of the situations where we are going to have a cost and this will fortune between now and when this child turns 18 years old . I think they really look into it before they make the decisions. This is the reason why the fertility rate in the u. S. Has not been too high recently. It has really went down during the economic crisis. I think this was the reason. For a while they were holding off. ,s the economy is improving while the costs rise they do not rise as fast as before. Maybe it will make them more optimistic. Reportingrg news joining us from washington. Thank you and congratulations again. 26 minutes past our. Bloomberg television is on the markets. Olivia sterns standing by with the details. Stocks are trading higher so continuing to make extended gains after last weeks rally. The dow up one percent. By about one percent. This comes as tensions ease over Global Concerns as the iraqi kurds appeared to be taking control of the most old vamp. One stock we are watching is Family Dollar. Iraqi kurds appeared to be taking control of the mosul dam. Offer forllar tree Family Dollar for excepted would have created a new market leader. Family dollar said the consideration of the new bid has not changed but the recommendation to support a merger. That is one we will be sure to be watching but helping sentiment overall. Welcome back to the second line on of bottom Bloomberg Television. I am Mark Crumpton. The latest from ferguson, missouri. The family of the pathologist hired i at the data leak shotgun put his handshave up but we do not know. An independent autopsy showed 18yearold Michael Brown was shot at least six times, including twice in the head. This comes as jay nixon at announced he will not enforce a curfew tonight after ordering the National Guard into the st. Louis suburb that has been the scene of protests over the shooting. The order came after a night in which Police Used Tear Gas to clear protesters off the street well ahead of a midnight curfew. Protesters have taken to the streets for more than a week. Wall street pros say the fed gathering in jackson hole, wyoming, is the event of the week and maybe the event of default. Echo mckee says that depends on fed chair janet yellen. Mckee says that depends on the fed chair janet yellen. Research papers explained and discussed largely interesting on the margin. That changed after qe does for three years in a row ben bernanke used to keynote address to lay out their policy plans so it became a big deal. Last year on his way out he became the first chair not to speak at the gathering. Janet yellen was there but did not make speeches. We do not know which direction she will take, academic outline or policy prescription. What is most likely . People are expecting a policy talk. Speech title is labors market. Market. R i know Kansas City Fed people would like to get back to the old days when the focus was on the symposium, not the speech. Also not clear what she would say. What would she say if she didnt . Is lockedicy changes in. Onking to the first moves interest rates. If she wants to i suppose she could given up a on the labor market had. Put that in the context of the papers deliver there. She spoke a lot on parttime employment and how it is elevated. Good story at bloomberg. Com for that. It is coming down. The percentage of workers who ,an only find parttime workers still much higher than in the decade before the recession. Also talking a lot about longterm unemployed, people who have been happier or more without having to find a new job. Big focus for yellen and others, wages rising at just the level of Consumer Price inflation. So no one is getting a raise. I talked to Bob Mccullough earlier who said maybe she will leave rates lower rather than longer because we can tolerate more wage inflation, give everyone a chance to participate in the recovery. Go mckee, thank you. He will be headed to wyoming as we bring you exclusive live coverage of the jackson hole economic symposium thursday and friday. Back to School Shopping season in the United States is already in full swing with over one third of consumers having begun their shopping up from 29 who started at this time last year. The president and c