concerns over venezuelan debt. stocks dropped around the world on concern that tighter lending roles -- rules and china will slow growth. the s&p 500 is seeing a second day of losses and the stocks slid more than 2%. the shanghai composite index plunged more than 5%. larry think remains optimistic. he says the equity markets are cheap and that corporate profits are keeping pace. >> despite this dramatic increase in prices, we are fair value to modestly above fair value today. we are not at the levels we saw in 2000. we are not seeing the same pes where you had true bubbles. >> boeing is cutting production , thes 747 eight jumbo jet third cut announcement in less than two years. more efficient models are eliminating the need or four engine aircraft. abercrombie & fitch ceo and founder mike jeffries is stepping down immediately. he has been under fire as abercrombie lost relevance with teenage shoppers and profit tumbled. the board is looking for a new chief executive. investors -- shares were up more than 6%. mcdonald's bets on custom food. the restaurant chain will be expanding its ilk your own burger concept in a bid to live were more millennial's. the move is part of an effort to shake off its reputation for selling fast food. mcdonald's is facing its worst slump in more than a decade. a scathing u.s. senate report concludes the cia's harsh interrogation of terror suspects after 9/11 was not effective and that the agency misled congress and the white house on key aspects of the program. -- challengedsion by the cia. members of the bush administration and republicans in congress. peter cook is on capitol hill with more on the report. this report is very critical of the agency. >> it is a very harsh picture of the agency in those days right after 9/11. this program, the detention program was first put into place. even though the practices 2007,bed ended in president obama put his own executive order in place in his first days after taking office. this report is renewing old questions, old debate about the agency itself and some of its actions. even up to this day. the report was put together by the democratic staff and it took six years to produce. in thise key findings executive summary, the harsh techniques used by the cia including waterboarding were not an effective means for gaining information. the interrogations were brutal and far worse than the cia for us are presented. the cia repeatedly provided inaccurate information and impeded oversight. graphic detail in the treatment .f some detainees it details the death of one detainee who died from hypothermia and another left in the dark for 17 days when the cia lost track of him. the person most responsible for releasing the report today, pushed for itsn release and spoke today on the senate floor. seehere were those who will the report and see what the americans did and will try to use it to justify evil actions to incite more violence. we cannot prevent that. but, history will judge us by our commitment to a just society governed by law and the willingness to face an ugly truth and say "never again." responding in a statement from the current director who says he knowledge is the program had shortcomings in the agency made mistakes, but he defends the ultimate results from his program saying "i review indicates that interrogations of detainees did intelligence that help us work attack plans, captured terrorist and save lives." the other big disagreement between the cia and members of the bush administration, the notion that the cia when rogan was operating on its own. the cia disputes that. it was acting with the authority from the white house. >> republicans are not just criticizing the substance of the report. they are questioning the timing with politics being what it is. >> there is a politics to this report. they're questioning the timing sing that simply releasing this report will expose americans abroad, military folks, diplomats. maybe they could be exposed to some sort of reprise. they encouraged the release of the report and there is one republican who is not backing that view, john mccain. a former prisoner of war took to the senate floor to defend feinstein. sometimes is a hard pill to swallow. it sometimes causes us difficulties at home and abroad. it is sometimes used by our enemies in attempts to hurt us. the american people are entitled to it, nonetheless. withhn mccain breaking several of his republican colleagues. is anre suggesting this attempt by the obama administration to go after the bush administration one more time as well. >> peter cook joining us on capitol hill. thank you. we will have more on the cia report in just a few minutes. i will be speaking with john deutch. according to a bloomberg politics poll, the republican party is enjoying peak popularity. 45% of americans say they hold a favorable view of the gop. 47% say they don't. margaret joined me to break down the numbers. the republicans are more popular than they have been in five years. yet, they are still more unpopular than popular. why is this good news? depends on everything else. it is all relative. they are at 45% rate much higher than march when they were 37%. you have seen a comparable decline by the democrats were -- who are now around 41%. president obama is about the same level, 45%. he is on a downward trend. in terms of momentum, the republicans do have some momentum with them and that is something that they can relate >>. there is little good news for the president. what can he do to win back american confidence? >> it is a bleak report for the president. when you look across the board, his approval ratings are stuck at 39% now. issue after issue, his handling of immigration, majority of americans don't like that. third -- a the little more than a third of support for foreign policy. he is still under water on the economy, too. 42% of americans say they like the job he is doing. that is quite an uptick. summer, it was 37%. americans do think he is moving in the right direction on that. a little too late to help democrats in election. >> margaret, thanks. coming up, and outlook on emerging markets. -- we will beo right back. ♪ >> the emerging markets stocks headed to an eight-month low today as chinese and shares doubled the most since 2009. gerardo rodriguez is a portfolio manager and senior investment strategist for emerging markets at black rock he joins me here in studio. welcome to "bottom line." we were just talking about the index, data compiled by bloomberg shows the developing nations page has lost 3.5% this year, trading at 11 times projected 12 month earnings. how should investors read these numbers e? >> we are at an inflection point. no longer is it monetized policy and a china driven growth. as the fed moves into monetary policy, we are going to see more volatility. and dispersion again the name of the game. outlook, we are coming up with the usual comments that emerging markets -- >> there is a section called em emergency. it reads emerging-market countries will likely compete for liquidity by raising rates. how is that competition going to impact economies and what will it mean for currencies? >> no longer the tide lifting all boats. the competition is in several different manners. one is for liquidity. the interest rates. also will be a competition on making countries more attractive. we are seeing interesting cases mexicodia, indonesia, with energy reform and china. it is a beauty contest out there. it will promote more divergence. hasow much of a challenge the stronger dollar and weaker oil into emerging markets? >> that is an issue that also contributes to the story of divergence. when you look back, a stronger dollar has not been good for emerging markets in general. however, this time around the balance sheet of emerging markets, a much stronger position. if the dollar keeps thengthening because underlying fundamentals of the u.s. economy continue to improve, that is also positive to emerging markets. on the other side, lower oil world are better to the because they are creating a more dynamic environment for growth in general. however, at the margin, there are winners and losers especially on the accounts. there are ways in which oil affects emerging economies. -- there are some countries that have an important reliance on foreign oil like venezuela and others that have less room to accommodate policies. >> which emerging markets are best positioned for growth going forward and which ones are not? >> in this context, we like reformers. think about countries like mexico, india, indonesia. we like countries that are through the funding channel. we tend to like europe. >> we have one minute left. i would be remiss if we did not talk about greece. bonds got hammered. yield rose half a percent. the prime minister calling for snap elections. are you concerned we are going to see a repeat of 2009 in greece? >> it is too early. there are three rounds in order for congress to elect a president. there is a lot of political uncertainty. given that no single party has the votes to elect the president. should mention that blackrock is not heavily invested in greek bonds but it is an area of concern because it could be a ripple effect. >> absolutely. greece is an interesting case because it is growing, the fastest-growing european country. introducing these elements of uncertainty is not a good thing for growth. contaminates the vision. joining usrodriguez in studio. thanks for your time. we will have more on the senate cia report with former director john deutch. ♪ >> for more on the senate cia report, let's bring in john deutch, a former deputy secretary of defense. he joins me on the phone from houston. welcome to "bottom line." thank you for your time today. >> thank you, mark. is chair ofinstein the senate intelligence committee. she said the report on the cia's stands as an record of a stain on our values and on our history. what is your reaction to those comments? >> i think it is a very badly thought report. i very much think it contains incorrect allegations of what happened during this per. iod i don't think it helps the country defend itself in the future. incorrectu say allegations, can you be more specific? >> sure. the report touts any of these cores of -- doubts any of these cores of interrogations were of value to the country. the record shows or has been plenty of evidence publicly given to the media and elsewhere about the value of those operations. people can differ about whether the value of that intelligence in coerciveprogram interrogation. deny the fact to that intelligence to have value. >> john brennan said the interrogation techniques described in the report save lives. john mccain was tortured while being held prisoner in vietnam. he said we gave up much in the expectation that torture would make us safer. if torture is contrary to american values, is it justifiable in any circumstance? does it save lives? >> first of all, my sympathies with both of those gentlemen. i say to you, it is not and was not intended to be torture. clumsy there was a expression of coercive interrogation. great attention was paid to not torture people. not torturing people. the coercive interrogation that ,as done did indeed save lives as difficult as it is. those tough judgments have to be made and people can say it is not worth the intelligence value and others can say it is as we try to protect america from attack. denying the fact that it had value is what is the main failing of this senate report. do you believe the release of the report cover mice as national security and does it put our allies at risk? >> there was a great reason for the public and congress to want a fair and objective transparent accounting of what happened. there is no question about the fact that that release of that information influences other countries and their willingness .o cooperate on balance, i would have been in favor of a careful, transparent and objective and accurate report of what happened. i don't believe this report meets that standard. >> if cia officers are bound to of committed crimes, should they be charged and convicted should they be sent to prison? that matter has been settled and it's an important point. when president obama came into office, he asked the attorney general to establish a special prosecutor to review the entire matter of these interrogation operations. the special prosecutor came back with a finding that there were no weapons his that required offensesprosecution -- that required criminal prosecution. the president accepted those findings and said it was time to move forward. i stand with president obama on saying that that should be the bottom line of these efforts. we relive the past and the men and women of the central intelligence agency deserve to know they are not under continuous potential risk of investigation and litigation. i might sum up what you are saying, the report should have been released but with limits? >> no. i would say the report should have been released but it should have been much more accurate. >> john deutch, former director of the central intelligence agency joining us on the phone from houston, texas. thank you so much for your time and perspective. >> thank you. the hour.tes past time for a market update you have a mixed drawn wall street on this tuesday. losses and a with global selloff spurred by concerns over growth in china and potential political turmoil in greece. the prime minister calling for snap elections to be held on december 17. .4%.ndustrials down s&p 500 down .3%. .3%.q in the green come up ♪ >> welcome back to the second half-hour of "bottom line." i'm mark crumpton in new york. amazon workers will not be paid for all of their time at work. u.s. supreme court has ruled that the house workers do not have a federal right to be paid for the time they spend standing in line after their shift while security guards search to make sure they don't steal anything. the supreme court ruling was unanimous. greg, can we expect other retailers who may be battling similar cases to get the same ruling? >> we can. there were a number of cases out there, many against the amazon directly and other retailers .ike cbs, ross stores those retailers probably will win their cases as well. >> tell us about the allegations. what did the workers say and what is amazon say in response? dispute that they had to go through a security line, a metal detector and have their bags searched on the way out of the facility. the question is how long they have to stand up. sometimess say they have to wait as much as 25 minutes. amazon denies that and says they are averages 90 seconds to get through. was a case about federal wage law. is there a chance that workers can press their suits under the wage law? >> yes and that is what i meant that they said the federal claim. the lawyer for the plaintiff says there are some states that have their own laws including california, pennsylvania where workers might be able to sue. a lawyer i talked to on the other side of the case representing the retail industry mirrorny of those laws the federal statutes. what was the supreme court's reasoning and to what extent? anthis has to do with amendment to the fair labor standards act called the portal to portal act passed back in 1947. preliminary and post luminary activities, you don't get compensated for those. thatupreme court has said you still get compensated for parts of the job, things you have to do that are integral to the job itself. this iseme court said actually a post luminary activity. therefore, you are not entitled to federal competition. thank you. we turn our focus to the next step in the evolution of motorcycles. largest manufacturer of full-size electric motorcycles and has been in the business since 2006. the ceo joins me now from mountain view, california. welcome to "bottom line." >> thank you. pleasure to be here. >> what is the appeal of an electric motorcycle? how do you convince old who crave the roar of their writing that going to electric and give them the same type of thrill? friday of the month, we hold an open day at our facility and one of the pleasurable things for me is to go down and watch people who become intrigued by electric take one of our bikes for a ride and come back and i watch them take the helmets off and all i see is this great grain. with our technology, you get no noise, no heat, no vibration, no gears, no clutch. it is all about the purity of the ride. providese electric puts it straight to the back wheel come a phenomenal experience. >> who is your target consumer and what does the man look like -- demand look like? >> we have three groups of people buying our vehicles today. is the motorcycle enthusiast who already has a number of bikes. we have a second group that is returning riders, people who wrote when they were young and stopped for a period of their life and want to get back into this or -- the sport. the third group is the younger generation of people who are coming into the sport for the first time but are not intrigued by gas bikes. that is exciting because we need new people. >> what are the challenges of manufacturing your products in the united states? how much is assembled here? ineverything is done california. we do the research, the designs, the development. we have a supply chain with parts from different parts of the globe. they all come into california. we are proud to say that our view colts are crafted in california -- our vehicles are crafted in california. has it become more cost-effective for you to keep most of that here in the u.s.? >> at this point, when you look at the amount of overhead, it absolutely makes sense. we can see ourselves continuing to employ people in california or a significant -- for a significant period ahead of us. we don't feel the need to do any outsourcing. strong employment report surprise a lot of analysts. are you hiring more people? >> we are hiring. we are still a small company. we certainly higher. we just started our 15 model production. we are bringing in workers who will work on the production lines. they will do so during production. we do have some temporary labor. we have a small group of full-time people. burbankmonth, the police department went electric and became the latest law-enforcement agency to drive electric motorcycles. the main selling point was stealth factor. is that what you have in mind? the ability of officers to sneak up on people? >> i'm not say that we deliberately designed it. the application of our vehicle and community is first-class. at statefind officers universities where they are able o write them on the paths -- ride them on the paths. they have the ability to stop and engage the students or members of the community who want to know what this thing is. effectiveome an policing tool and we are proud of the fact that we have 30 police departments across north america who are using our vehicles and we hope to see more. >> richard walker joining us from mountain view, california. thank you so much. >> my pleasure. thank you for having me. plunged toa's bonds the lowest level since 1998. the risk of a potential people when we return. -- potential default when we return. ♪ >> welcome back. it's time for today's latin america report. government bonds and venezuela have plunged to the lowest level since 2007. the country is getting hit by the drop in the price of oil which accounts for 95% of its exports. how concerned are investors about this? >> pretty concerned. we covered there was a meeting last week held between investors and the law from the represent argentina. they gave free legal advice for 150 investors and analysts who were there and people had tons of questions because it's now seeming that it's not a question of if, but when. >> where the investors panicking? >> there's two types of investors. we have real money long-term investors who already have their investment in argentina that is blown up. they are trading below $.50, which is ridiculously low. you have hedge fund guys who are waiting for the entry point. nt to know when is the point to get into you don't have a catalyst anytime soon. >> what is pushing investors to start having these conversations? >> the question is, how long until venezuela runs out of money? it can be 2015 or 2016. they have a ton of debt due in a couple of years. credit squeeze put out a report, the price of oil has to be $97 a barrel for venezuela to make their debt payments. we are at $62 for venezuela. it's not a question of if. when is it going to happen? under what context? >> is that the question? >> exactly the question. that and how. it can take place in many different ways. >> venezuela is not the only potentially falter. what is the status? >> the are two types of debtors. the state oil company and venezuela. his venezuela going to choose to default on one over the other or both? assets --as these it's much more feasible to go after the company than venezuela. what makes the most sense is maybe they would default on venezuela instead because the company, that's their moneymaker. 97% of their dollar revenue .omes from their operation if they default, the chance that they won't get foreign investment anymore and creditors will be going after assets, this is blowing up the future right there. the worst-case scenario is some sort of debt remediation. in, whichnment comes is ironic because you say you want a new government to come in and fix this mess. we have no money, we don't have milk on the shelves, what are we doing paying our debt? it's as from chavez and problem. we are not going to pay it. that is a problem. , in whation is circumstance and what is the context surrounding the default? >> when the lawyers had that meeting, what did they say was the most likely solution? >> the most practical solution is extending the maturity. where they don't pair cut principles but haircut future value. you basically have a market scenario. >> to be continued. thank you so much. that is your latin america report for this tuesday. coming up, the creation of the first apple computer. steve wozniak walks us through how he designed the machine. ♪ >> welcome back. bloomberg businessweek chronicles the most disruptive ideas of the past 85 years. in 1976, the apple one computer went on sale for a retail price of six and $66 -- six under six and six dollars. steve wozniak remembers the early days. -- $666. >> we have the first computer we ever built. i had wired the entire bottom, soldered it together. >> doesn't get boring to tell the story? >> never. it's in my heart. the summer i built the apple one computer, i was totally aware that a revolution was close to starting. i have been showing off my computer. i had given away my designs for the apple one for free. steve jobs came into town and popped into town to see what i was up to and he would somehow turn them into money for both of us. paul owned a store in mountain view. me demonstrate in my computer. steve jobs went in to sell him some of our little boards that we built for 20 bucks and he said no. people want to buy it prebuilt and want to buy the thing ready to go. build. us $250 to we would sell it to $500 and the retail price was $666 because i like repeating digits. the garage is a bit of a myth. it represents us better than anything else. we did notice signs there. we would drive the finished product to the garage to make them work and drive them to the store that it is cash. quickly.w that garage the great disruptors special will air tonight at 9:00 a.m. new york time. we look at seven innovators whose ideas have changed the world. joining me now with a preview is trish regan. one of the big stories, the global markets. >> looking at the selloff underway. of this is being fueled by what we are seeing overseas. concerns about china, retail investors levering out to try to gain some market opportunities there. that is playing out in the negative way. and concerns about greece. you have a parliamentary election happening on september 17 -- december 17. the question is whether you will see some kind of contagion throughout europe. that europe isn in bad enough shape. they are looking at deflation. a lot of concerns about whether or not mario draghi is going to be able to come through with some form of qe. there are a lot of questions about what it all means for all these other countries. we are going to be talking all about portugal with the economic finance minister of portugal at 3:00. >> see you then. thanks. stay with us. another check of the market movers on the other side of the break. ♪ >> get the latest headlights at the pop of the hour on bloomberg radio and streaming on your tablet and on bloomberg.com. that doesn't for this edition of "bottom line." i'm mark crumpton reporting from new york. -- that does it for this edition of "bottom line." is 56 past the hour which means bloomberg television's on the markets. i'm matt miller. a quick check on where stocks are trading after a bit of turnaround today. we were down across the board, now the nasdaq has recovered even as stocks overseas posted losses of 2% or more. the worst-performing sector on the s&p 500 today, shares of sprint, t-mobile and verizon all coming down. joining me for today's sector report is john butler, senior telecom analyst. unique real-time research on companies and industries. let's start with verizon. say?did verizon what they basically said was that margins were going to come in theong with eps fourth quarter. it is due to heightened competitive activity, which is code for a price war in telecom. t-mobile and sprint are the instigators. >> what did at&t say? they are getting crushed today. what do they say is affecting results? affected in ao similar manner. one thing they are saying is their net ads are going to be up on a sequential basis and you're on your. is howly, what they said this is going to play out -- it's the holidays, it's been a promotional time in telecom. at the end of the day, all carriers need to generate cash flow to invest in their networks. the ugly promotional environment can last for a wild but it will never last forever. at some point next year, you will see things calm down and we will be back to business as usual. >> we are still not seeing such a bad competition -- no more on limited in a plans from these guys. >> there isn't. it's a good point. they are starting to get smart about how they are pricing data. is next thing for telecom you will see content starting to come over your wireless phone. by content, mostly short form video. we could see deals like what we have seen with verizon and the nfl. the telecoms have a way out of this if the price war gets ugly. we are looking at a temporary situation in terms of the promotional case right now. >> is that where we will see growth coming from? consumers willing to pay money for it or pick up subscribers because of it? >> i think so. we will see wireless video, particularly programming coming over your mobile phone. the connected home and car, all these subscriptions you are getting for new devices in your life, whether it's a tablet or a car or a thermostat in your home or an alarm system come all that adds up for the carriers. that is where their future lies. >> thank you so much for joining us. "street smart"nd is up next. ♪ >> hello and welcome everyone goo. we are going to focus on the trouble brewing yet again in your. "street smart" starts now. first off, here are the top stories we are watching. more evidence wall street is

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