>> from bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line." the u.s. supreme court strikes down limits on campaign contributions. day 2 on capitol hill for mary barra. and very dillard discusses the area. of our viewers here in the united states and those of you joining us from around the world, welcome. matt miller is on capitol hill where gm ceo mary barra faces

lawmakers for a second day. yang yang looks into what goes into a recall. justicesart reports have struck down overall limits on campaign contributions. what are they? >> these are what are known as aggregate limits. it is not the more well-known limits on the amount you can get to a particular candidate or party. but there are other limits that were designed to supplement to those that say you cannot him, for example, more than 23,000 dollars total to individual candidates and the party in an election cycle. those have been struck down so people now will be able to give more money to a variety of candidates and party committees. 1970 six ruling allows limits on contributions to individual candidates. what do we make of the fact that

the court had a chance to overturn that ruling but chose not to? >> probably not too much. it was in the realm of what could have happened in this case. but the majority said we don't need to go there to decide this case. ofef justice robert is sort the swing vote determining how far the court would go. who oftens a justice says i only want to go as far as i need to, in this case, it would have been a big surprise if the judge had overturned that big precedent. >> what was the breakdown? breakdown we have seen before in many types of cases, certainly in for -- in campaign-finance. thomas, roberts in the majority. it is the same breakdown we had in the citizens united ruling a few years ago. >> justice breyer, correct me if

took the not so much unusual step of reading part of his dissent from the bench. he was not too thrilled with today's ruling. >> he was not. he went after it in very strong terms. he said this court had left all efforts to control the influence of money in politics as a mere remnant of what had been intended to be. he said the court created a big loophole that will let people give a whole -- give money to a whole lot of different places knowing that it will be funneled to a particular candidate. termsressed in as strong as he could have that the court stepped in something that it had no right to be in. >> what is the impact of today's ruling likely to be? cycle,he last election there was something like 1200 people who bumped up against the limit that was in place. it was $117,000 in the last cycle.

it is not a huge number of people. it does impact other avenues there has been a lot of coverage on. the koch brothers had been sending money to super political action committees and politically-minded nonprofits. that is not affected. this affects people giving money directly to candidates, directly to parties. it will let wealthy people do more of that sort of stuff. ceo mary barrars faced a second round of tough questioning on capitol hill today. this time, it was the senate with lawmakers pushing hard to get answers out of barra. matt miller is back on the hill. what has it been like? >> day 2 was a lot tougher for mary barra. although she had the experience of day 1 under her belt.

wererday, the congressmen really asking her a lot of questions and expected to get answers. she wasn't forthcoming on most of the questions. senators spent most of their time admonishing her, not really giving her much time to answer. listen to this exchange. i want to know what investigation again after that deposition. >> that is part of the investigation -- >> so you don't know whether anything happened. >> i don't have the complete fax to share with you today. >> that is incredibly frustrating to me that you would not have a simple timeline of what happened once you got that knowledge. werelot of the senators saying, listen, you have had two months to go through all of the data. you had two months since you found out to figure out why this mistake happened and persisted

for so long. and you had two months to come here with answers and tell us. and she just hasn't done any of that. she constantly refers to the ongoing investigation which seems to be the new mantra for saying i don't want to tell you. you just say there is an ongoing investigation. the same excuse was used often, itsough not as often, by officials that came before the commission. very interesting when we heard generaltor asked scoville about a criminal investigation. he was not forthcoming on that investigation although he would not deny it. as you werenvolved, in toyota, in a criminal investigation of gm? confirm or i cannot deny that a criminal investigation is underway. obviously, we all thought

about general motors and we heard about the criminal fine passed down for toyota. now it looks like general motors may be in the running for that as well. >> i guess it is the $64,000 keepson where ms. barra saying that there is an ongoing investigation. why doesn't congress wait for this investigation to be completed before calling her to the hill? >> that is a good question. the families of a lot of the victims were here yesterday and a lot of the calmest men and senators were active today and yesterday in the questioning. they were doing press conferences with the family. and a lot of them using props and catchphrases that we heard pop up over and over and over again. a lot of it definitely for political reasons. and marylike ntse barra, they want to get to the bottom of this issue and prevent

it from happening again. >> the question that has persisted in these gm hearings is why it took a decade for the carmaker to recall all those flawed cars. so how should it work? yang yang is in washington with the mechanics of a recall. >> good afternoon. .here are a. couple of kinds of recalls. one kind comes from a ntse investigation, uninfluenced recall. then you have recalls voluntarily initiated by the automakers and selves. that ihe second type want to focus on. a potential safety defect is noticed, either through a critical mass of customer complaints or through a discovery made i the manufacturer in a routine checkup, a team of engineers will investigate the issue. they will do a series of simulations and test runs to did term and whether the defects

create an "unreasonable" safety risk. if they do identify such a risk, they have five days to notify safety regulators. panel of senior engineers gathered to make a recommendation on how to move forward. and if they can, how to fix the problem. to the ceo who will make an up or down call. far, it getting this will almost always be a call to act. they then give a heads up to the dealership and then track notification letters with the help of ntse and send those out to all identified car owners. it is up to the manufacturer to make the fixes in a reasonable manner and time frame under the watchful eyes of safe he regulators and those could take months to do all of this.

10 years is not considered to be an acceptable time frame. >> thank you so much. coming up, more on the u.s. supreme court finance campaign ruling -- campaign finance ruling. ♪

today's 5-4 vote is the court's biggest campaign finance ruling since the 2010 citizens united decision. joining me now with reaction is doug holtz-eakin. guinness,ngton, miami the president for the committee for responsible federal budget. doug, let me start with you. strikingreyer said down aggregate limits on overall

campaign contributions had "eviscerated our nation's campaign finance laws." decision corrupt what justice breyer called the political integrity of our governmental institution? >> i don't think so. the supreme court has made the point quite clearly really -- that money is voice. people can now support as many candidates as they want and as many party organizations as they want. that makes it more likely that the money will flow into those transparent to demented sources and listen to other places. maja, money is voice to be sure, but whose voice? >> i guess i have to agree with justice breyer that this isn't the main decision that has really corrupted our political financing system. but it is another addition to it where, bottom line, we have too much money flowing into politics.

i don't think it is the same as free speech. i think it is similar to bribery. moneywhy you can't give to someone who pulls you over when you get a speeding ticket. the amount of money in our political system is corrupt and -- is corrosive. while i understand the precedent for this ruling, i think it is the oval office that is in big trouble. >> the system has been in trouble. when the president in 2008 didn't take the public financing that gave him unlimited amounts of public money, that was the end of public financing as we knew it. citizens united and this has made clear what money can do outside of that public financing. we are at ground zero in trying to figure out how to do this going forward. >> but today's decision, doesn't mean effectively that only the wealthiest americans have a voice? >> i don't think so.

it is clearly the case that people have been able to contribute for a long time. they were just limiting the number of candidates and party organizations that they could support. why should you'd do that? if you have the money to support five different people running for office, that should be a reasonable thing. >> let's move on quickly to health care. president obama announced that more than 7 million americans had signed up for health care under the affordable care act. do you think they reached the that 7 million? >> i was unsure whether they would reach it or not. i was some price -- i was somewhat surprised that they were able to. but the focus on these benchmarks in the immediate term will not be the more important issues on how this whole health care reform works. it is a huge political issue in this midterm election. but the real questions even stretch out beyond that. what are these changes going to do to control health care costs,

expand coverage, and improve quality? the jury is still out. we are looking at these benchmarks and because the bringing out of this was such a fiasco, they are very important. but we still have to look down the road. what will will this play in reforming the health care system? thehe fiasco aside, president said jokingly yesterday that it was a fiasco rolling out. but the governor of louisiana offered an alternative to the affordable care act. his plan would create a one billion dollar grant program that states could access if they create insurance reforms to control costs. is that a credible alternative? >> certainly. if you roll the clock back to the start of this debate, both sides recognize you had to do two things. cover more people and get the health-care spending under control. so far, the affordable care act has noticed sermon all impact on the latter. medicaid reforms and the

limitation of -- >> is it too soon to see whether there would be a discernible impact? this thing is still in the cradle for all intents and purposes. >> this is just the beginning of health care reform. but the early signs are not good. there were pretty big demonstration projects for medical homes and coordinated care and medical savings in the medicare program. they are 0-3 on these. we need to try something else. >> we will conclude this segment but we will have both of you back. we have more to talk about. one of the things we will discuss going forward is taking a look at politics, midterms 2014. the gift that keeps on giving. ♪

>> let's continue our discussion with doug holtz-eakin andmaya mcginnis. let's discuss tax reform. back in february, dave camp put out a plan that reduced tax rates and cut deductions, exclusions and credits. but even speaker boehner wasn't impressed. was it at least a good start in point? >> absolutely. it was a terrific starting point. when clinical folks respond badly on both sides, it is because something is real. tax reform is in desperate need of a major overhaul. he got into the specifics. the way we will get into tax reform is to broaden the tax base $1.23 billion a year.

changereform, repeal, those, and he's had come up with a lot of money that can be used to bring rate is down, both on the corporate and the individual side that helps to grow the economy. and should be used to help reduce the deficit and bring the debt down. chairman camp was willing to talk about those tax rates, which is a third rail for many people. it is an absolutely great starting point and we need people in the country to continue working on tax reform. what we have now is not good for anybody and not good for the economy. >> it was a starting point. too many interpreted this as it is this or nothing. he did exactly the right thing and broadening the base, lowering the rates, and there are things in there that are politically uncomfortable, but that is what you do. >> why was it barely mentioned yesterday in chairman reince budget? >> two reasons. number one, budgets don't have a lot of details. they are frameworks in which you fill in legislative details.

two, the budget committee is not going to tell the ways and means committee with the budget looks like. on herether point going is that, in terms of politics, it is an election year, just like every other year, where all kurds disappears. you have it -- where all courage disappears. you have people not willing to discuss the home mortgage deduction, which you need to do. theyou willing to reform health care exclusion which we need to do? we have to tackle them. we will actually include the industries by reforming those tax breaks. >> let's talk numbers. what did they look like for nondefense spending? >> in chairman ryan's budget, the nondefense spending numbers, the is mastic discretionary comes debt -- the domestic discretionary comes down to record lows. these documents are political documents.

the same would be true of the senate budget because the senate is not doing a budget which is unfortunate. but look at where the budget is realistic. the amount of nondiscretionary spending is so low that, even though folks who were supporting it, would not become fumble with it. i don't think those number -- be comfortable with it. i don't think those numbers are sustainable. >> social security reform, where is that in all of this? what do we need to do to achieve solvency? >> you can do any number of ways. maya has had some great plans over the years. all we need is presidential leadership. >> the sooner the better. >> it's not going to happen this year. >> but they are really hurting people who depend on the program by delaying. >> the plan is to cut back on the five percent in 20 years.

that is a terrible plan. ground.vered a lot of the budget goes by in lightspeed. thank you so much. 26 past the hour. bluebirds on the market. -- bloomberg is on the markets. >> let's get you caught up. little bit of steam to the downside. p relatively flat. a couple of individual movers we want to highlight for you is verizon. fio's quantum tv brand. it allows users to record 12 programs at the same time and the subscription costs $22 a month. also check out alcoa.

analysts not so bullish on the stock, calling it overpriced after significant price declines in aluminum. back in 30 minutes.

>> welcome back to the second half-hour of "bottom line." chile werenings for lifted after an 8.2 earthquake struck the south american nation's northern coast. six people were crushed to death or suffered fatal heart attacks that is a remarkably low toll for such a shift in the earth's crust factory orders rose in february, the most in five months.

rebound ineflected a orders for commercial aircraft and autos. orders had fallen for two consecutive months before rebounding in february. but demand for core capital goods considered a good guide to business investment plans fell 1.4%. 2.2%apartment rents rose in the first quarter of 2014. climbed.es inc. says from rice that rents average $1089 a month, up from $1055 a year ago. the vacancy rate fell to 4%, the lowest from 2001. barry diller is the biggest backward aerial, the streaming tv service being sued by the broadcast networks because it retransmits the network signal to customers for

less than telling dollars a month without paying the networks for the privilege. the u.s. supreme court will hear arguments on the case in a few weeks. dillerhatzker asked mr. what the court decision will meet for ariel. >> it is very possible that there is some salvage. -- i say will probably probably because i can see any password. it probably would not be able to continue in business. >> why is that? you would be ruled a multi-video programming distributor. could you not compete for content with cable companies? >> we could probably pay retransmission consent dollars if we could make a deal with broadcasters. but the value proposition would go out of the game.

aereo is a low-cost method of receiving on-air broadcasting. that is the broadcast -- that is the. platform. and toldng to compete our business and go to the parts of united states where we are not currently in. we are only in 14, 16, 17 cities. we would be in any urban city, certainly top 30, 40 markets. >> this is an effort to reach what you believe to be the addressable market of a herd of -- >> at the most, a third. i think there are a great many people who say that cable programming and satellite programming is becoming much too expensive and they would prefer an alternative that is a much less cost. by definition, the younger

rather than the older. but to me, i don't think we will reach a third. but to me that is the addressable. >> what about threats from the likes of chase carey who recently have made broadcast networks into cable channels and render your low-cost alternative neutered? >> i think it is very unlikely that a broadcaster who dealt their business on spectrum that they got for free, spectrum by definition belongs to the american people, they got it free in return for investing in and building a direct system that, if you could get the signal directly, you could receive it without anybody in the middle. i think it is very unlikely that they would be able to take that broadcasting away from that distribution and that signal and

that programming and put it in a solely paid system. >> so when kerry says it it is bs? threat tot is a nice convince the court or to convince anyone or to convince congress that this would be a terrible, terrible thing to disenfranchise 60 million people don't subscribe to cable or satellite and who do get over the air -- it is inconceivable to me that it could actually happen. but i can understand people -- it, well, it is like is the least realistic alternative. >> what does aeroe want to be when it grows up? what is there beyond broadcasting? >> i think service standing on its very own, the platform on its very own is a very good thing. it is a very good service to offer.

it is an alternative to a closed system. it is an alternative for a lot of people who would like to receive programming. -- their ribbon god-given right, given the quid pro quo first -- for free spectrum. i think it is a good business with good business characteristics. >> coming up, with a population of over a billion, only one in four adults in africa have access to banks. we will look at how to improve finance to africa.

>> antigovernment protesters fought with police in caracas.

police used water cannon and tear gas against the small group of masked protesters who stayed out on the streets after showing their support for gurria karina machado. adapted to its world cup sponsorship and softened its celebratory tone in brazil if unrest returns to the streets. acrossnstrations flash the country last year as the confederations cup started with brazilians angry at the high level of spending on the world cup compared with that on public surfaces. a 2011 world bank study show that only one in four adults in africa has an account with a formal financial institution. by some estimates, that leaves millions of african adults without access to banks. opportunity international is an organization that is helping to close the gap. is ceo joins me now from chicago. >> good to see you, mark. >> how big is the gap we are

talking about? how many millions of africans don't have access to banks? >> we know that only 12% of every household in africa has access to banking services. not only is the challenge big but the opportunity is tremendous which is why we are excited about our new grant with the mastercard foundation. >> 90 three percent of your groups micro-finance loans go to women. why? >> they go to women because all the studies that we work with and you know show that women in the developing world will take 90% of their income and invest it in their children, their children -- their families and the community. we don't target women but women are very good as far as investment is concerned. 98% of our loans are repaid around the world. >> opportunity international has

100 64,000ver agricultural loans totaling more than $29 million. talk to me about agriculture in africa. economic is it to the success of local communities in terms of income and food security? >> africa is a fabulous continent. when you look at the fact that six out of the top 10 fastest growing countries in the world are in africa. thatlso look at the fact looking out 25 years and you look at the working population and that age group, african young people will surpass china as far as people being available to work. when you look at the fact that today, they are importing four times as much as they are exporting but they have a quarter of the best farmland in the world, it is a great example of why the world and we need to focus on africa. >> why has africa been so

underserved? it would seem that anti-poverty efforts would benefit companies providing access to capital in areas that desperately need a way out of this cycle of poverty. >> it is not as if africa has been forgotten. i think a lot of aid has gone into africa. but what we are talking about at opportunity international with africa specifically is job creation. gift tocreate with this and a half million jobs and we morea goal of creating around the world. the mastercard foundation, what does each organization bring to your overall efforts in africa? some are fortunate to have wonderful donors and partners

and they all bring similar passion to finding a solution for serving the poor around the world. it isn't like the poor is any different than you and i. they want the best for their children. they want to work. they want an opportunity to get ahead. and all those organizations are working to help us provide capital which are loans, savings, insurance, and you wrap that all around trading -- around training and that is the solution to poverty in this next century. >> 90 three percent of your groups micro-finance loans go to women. how are women being empowered? how are they making their voices heard in africa? fortunate that we work with some fabulous women. i was just in rwanda a month ago. so many women are into farming. womenrst step is getting

attached with capital. capital is the entry point into job creation. but it is not that alone. thele around the world, poor just being an example, if they don't know what to do with money, then they can follow side. but if you really wrap that with great training and all the sectors that we work in, that is the solution. >> ceo of opportunity international joining us from chicago. thank you so much for your time. >> thank you as well. >> coming up, we look at detroit's coney island hot dog. can they bring health to a beleaguered city? ♪

>> detroit's home-grown coney island hot dogs has been a

dining staple for almost a century. about 150 coney island establishments ranging from simple stands to full-service diners. time. thanks for your in your story that appears on bloomberg.com, one sentence jumped out at me. you said "casual food reflects community ethers." how? >> coney islands were detroit's first fast food. they started cropping up in the early 1920's. sons, whenfounders he was working there, you put in your order and you pay for and you got it in 60 seconds. detroit's first fast food and they remained and a florist and boom. and it has been because of the auto culture. it was a quick way to get a bite to eat and we are not talking health food here by the way.

[laughter] this is your basic starter package, your coney island hot dog, light on the onions and french fries. >> you have to hold that up in little because we can't see it. oh, wow. the mentioned that many of coney. islands are run by ethnic albanians. is there a reason for that? >> the story goes that greek immigrants came to detroit via ellis island. some of them may have stopped at coney island, the amusement park in new york thomas are people eating hotdogs. nobody would hire them and they eventually hired themselves. they sort of invented this hot dog covered with a beam is chilly -- with a beenless chili. >> considering the population

loss and what is going on with the city in the middle of a municipal bankruptcy, the largest in the u.s. history. >> many stayed through good times and bad. i was surprised to find 150 of them at least listed in online directories. they come and go just like any other business. of businesse number retail establishments that have left to detroit in the recent decade, it is pretty amazing. some of them are staples, anchors in communities that provide cheap food and take out for neighborhoods and places for some people to hang out. >> there probably isn't a competition they goes on between one of these coney island shops in one of the bigger chains like make donald or wendy's, but in irony, does that seem to be helping that? >> some of them will tell you that it is a good thing to be

next to a mcdonald's or burger king. these are small businesses, many of them run by families and family members. they will tell you that mcdonald's has done their marketing studies and they know they will get traffic. they are in areas where they believe they will get guaranteed traffic. let's be there, too. . eateries that are clumped together around malls or around shopping areas. they like it. they provide an alternative that is sort of a local tradition. >> is this a staple of your diet? >> it is not a staple, but i like them. when i go to detroit, i often eat them. mark. to wait, too, breakfast of champions. [laughter] >> another check of the markets. ♪

>> get the latest headlines at the top of the hour on bloomberg.com. that does it for this edition of "bottom line." next.e markets is >> bloomberg television is on the markets. here are a couple of stocks we want to highlight for you today. monsanto reporting better than estimated second-quarter earnings. expansion inaying global corn and soybean business drove them higher. genetic testsor

higher than previously estimated. test, which is determined to developing or uterinebreast cancer. nasdaqstill seeing the down. p relativelythe s& flat. tom, you have some concerns about first-quarter earnings results. what is the biggest thing that keeps you up at night? >> the weather. we have had terrible -- i don't need to tell you here in new york. but you think about everybody was inside. they were not shopping. we already have 7:1 three announcements on the negative side versus the positive side. >> but we know this.

earningsof decline in or share price assuming there will be some payback in the second and third quarter from the weather? >> we keep seeing you highs. we need to let some type of air out of the bubble. if you're looking for opportunities and you feel you are missing the marketplace, look for areas that have an underperforming in the u.s. where you will be able to diversify. >> like where? >> emerging markets have been beat up but not all are created equal. you have seen the problems in russia. money is flowing out in china. exports are down tremendously. doingeas like brazil are extremely well because all the natural resource stocks and companies make up that area are bouncing back tremendously. >> hold on numbers offer a second. it has high inflation and weak internal demand. there are some serious structural issues year. >> there are. but if you look at the percentage of that country that

is based on natural resources and how far they have come down, just from a correlation standpoint, this year they have come up tremendously. the currency has been a lot stronger as well and that is the same with india and also smaller country indonesia is coming back. those three areas will have big elections in the coming months which could help their local economy as well. is there a difference between frontier and emerging markets? can you make a distinction between indonesia and brazil? >> i think that is a good point, especially as we look at etf's. don't just group them all together. don't merge your emerging markets altogether. you can get pretty specific with indonesia which is a frontier country and there are other countries like vietnam that have come back tremendously. it gives you so many more opportunities.

people should look under the hood and take advantage of them. >> so you are looking at frontier markets like brazil and indonesia. thank you so much. we are on the markets again in 30 minutes. "street smart" is up next. >> another day and another record. the s&p 500 rising on records data. we will get the real news this friday when the jobs come out. welcome everyone to the most important hour of the session. getsg up today, amazon into the tv game with a new streaming device. is focused on hardware instead of content when it's "house of cards