>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line" the intersection of economics with a main street perspective. president obama gives a negative -- executive order on equal pay. and made in america, some of the coolest oats you will find. you will find. ♪ asked to our viewers here in the united states and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines today. yang yang looks at the imf's

global growth report. and a look at acquiring time warner cable. let's begin with phil mattingly and president obama's executive order on exec -- on equal pay. forward, they do going and more important, will it move the needle at all yeah president obama at sign -- at all? >> resident obama signed two executive orders today. comeayday to will only from federal contractors. if you shine a light on this data, you will be able to find it there, any disparities between men and women. however, for it to apply to a wider range, they will need congress. and once again, republicans are not in the mood to get along with democrats here, something obama addressed directly in his press conference today. >> if republicans in congress want to prove me wrong, if they want to show that they do, in fact, care about women being

paid the same as men, then show me. they can start tomorrow. they can join us in this, the 21st century -- [laughter] -- and vote yes on the paycheck fairness act. [applause] humor both a little there, and a challenge there from the president. senate democrats are excited to push this legislation forward with votes as soon as tomorrow. >> and as we heard from the president, republicans are not onboard with the senate bill. they push back against the white house executive actions. why? clicks it is both poetics and policy. and> it is both politics policy. mitch mcconnell made it clear that democrats are only pursuing this because it is beneficial for them. iny will need their votes november. and house republicans have been very clear. they believe when you try to attach federal regulation to pay

issues, all you're doing is setting up more costly litigation and starting to tie the hands of rep -- of employers. they fully plan on standing in the way in the next couple of days. >> phil mattingly joining us. thank you very much. let's get you to breaking news we have right now. the chicago mercantile exchange am a the cme, says due to technical issues, it is halting some futures and some options. they made those comments on the website today. again, technical issues halting some futures and options at the cme. we will continue to follow this breaking news and bring you details as soon as we get them. comcast is making the case in washington for its proposed $45 billion takeover of time warner. in a filing with the federal communications commission today, the company spells out what it sees as the benefit for consumers in that deal, while challenging criticism of the proposed merger. is following that

story. the filing comes just ahead of the first congressional hearing into that deal. but that is right. it could be -- >> that is right. it could be as many as four hearings. the first one is happening in the senate tomorrow. comcast has a lot on the line. in its sec filing today, the company making the case for combining the number one and number two cable companies in the country is in the public interest and will provide unique benefits for both consumers and businesses. they need to win the approval of both the sec and the justice department to have us move forward. decide if it is in the public interest. the company has tried to address those of those issues in its 600 plus page filing. among other things, comcast argues it does not compete with time warner in any market, in either cable or broadband, in the country. it is pledging its subscribers that he will not ensure -- it

will not control more than one third of the cable market in the country. and it promises to abide by neutrality rules and treat all equal full -- equally. theyconference call today, said consumers would be the big winners. >> we expect a rigorous review. we expect tough questions from members of congress. we have had them in our previous deals. it is our goal to work hard to demonstrate the significant benefits that are offered by this transaction and to tell the that consumers can expect to be better off as a result of a combination of comcast and time warner cable. >> but critics are ready to have there's day as well, and the prospect for a fight is one reason why shares of both of the companies have been down since this deal was first announced in february. the senatee before judiciary committee again tomorrow. they will have the chance to

offer their say on the combination. >> what are the criticisms we are likely to hear tomorrow? tofirst off, they are likely run into hot water over problems with comcast controlling the broadband is this, not so much the cable business. the combined company will control about 40% of the broadband market. that is too much, say some of its critics. and another thing to watch closely is content, whether comcast will give preference to its own programming over competitors. one example is there is an aspiring golf network to be competitive with the golf channel that is owned by comcast. that is one issue to watch. at the end of the day, comcast is confident in steel and that it will pass regulatory muster. -- in this deal and that it will pass for tottori muster. and how tough will the conditions be? will it be so tough that companies may want to walk away? >> peter cook, thank you.

we have more breaking news as part of our latin america coverage. intel announcing that it will shut its costa rica test facility and cut 1500 jobs at that site. intel says it is consolidating assembly and test operations. boon togy should be a education, giving educators new tools and better outcomes. but for a handful of for-profit companies, a turn toward technology has meant big profits, but disastrous results for thousands of students. spent weeks has poring through the hundreds of pages of legal don -- documents and has come up with the idea that not all technology driven change has been good for education. you have found, at least looking through some of these documents, that education results are worse online. why has tech not made things better? been an interesting tour that has largely gone unreported.

for-profit companies made a big shift around 2006 to move more and more of their operations online as the markets they were selling their education into were getting full of competitors and it was getting more and more expensive to acquire new students. a start going online and one of the results has been a very efferent outcome. -- different outcome. they do not always report results because they do not always look so good. that a thatsense found the actual results for , the failure to to get a degree was as bad as it was for the for-profit campuses duchenne's. the online institutions found 64% of the students were unable to finish the degree the school intended them to get. to medically worse than the already bad results for the campus for-profit education. >> what are they doing about this? >> very little. a handful of states attorneys general are taking a look about -- a look at this. they're doing an investigation of five of the schools. -- listen tochools

what the kentucky attorney general had to say. >> we want to make sure there is no false advertising in terms of selling a product. in the realm of education, this is a product. peopleboiler rooms where are engaged in telemarketing. they are paying lead generation companies and tracking out any particular lead that they can. they are making telemarketing calls and when they get someone on the hook, they are spending a terminus amount of money to train the recruiters to get someone to sign up today. and once they inked the papers on those federal student loans, they are hooked. they cannot charge -- discharge those in bankruptcy. 64% of you have 46% to the students not even completing their degrees, and then you see the tuition money, where students are often borrowing the money and putting that toward tuition, and one quarter of the tuition going to mocking students to acquire other

students as opposed to the excellent education -- going to acquiring more students as opposed to excellent education. the kentucky attorney general is looking at for companies. defend their graduation rates, saying they were similar to what other schools were doing. but the financial expenses of these companies and the great expense of marketing is certain to raise some eyebrows, particularly when you look at the fact that they are moving to online to get lower costs, and the results for the students appear to sometimes be locked -- a lot worse. cory johnson, thanks. and remember, for all things tech, but tune into "bloomberg west" twice each day. only on bloomberg. coming up, a global outlook.

we will get reaction to the international monetary fund's world economic outlook. us in just a joins moment. ♪

>> welcome back. this is "bottom line" on bloomberg television. i'm mark crumpton. to washington where the international monetary fund cut its global growth forecast in his newly released world economic outlook report. my colleague, yang yang, is in washington with more on that story. good afternoon. >> good afternoon, mark. yes, indeed, the imf has trimmed its global economic growth -- prediction, but only by a 10th of a percent. it is down slightly from its 3.7% production in january to 3.6%, but up from last year's

growth of only three percent. next year's expansion is expected to accelerate to 3.9%, unchanged from the prior forecast. the new outlook comes just days before the official kickoff of the imf world spring meeting on friday in washington. the overall report is stronger, unevenble global -- global recovery with weaker markets in brazil and japan. the u.s. was singled out as providing a major impulse to global growth, and as the strongest of the advanced economies, the imf chief way,mist said that in a the u.s. is pulling the world. speaking on "market makers" with erik schatzker and michael mckee, she gave the u.s. economy of comic --t another bit of confidence. but i believe the u.s. economy is in good shape, balance, and going to continue.

>> but it was not all on the back of the imf. they're preparing market for flows of capital back to advanced economies. and with the ongoing ukraine crisis, russia's growth projection was grower -- lower from two percent in january to 1.2%. and the imf has had some rather unsolicited advice with mario suggesting he act against inflation rests. -- risks. when asked what he would like to see in terms of policy, whether that should be in the form of negative rates or quantitative easing, he would not say. but whatever they choose, "sooner is better than later. >> -- better than later. >> thank you. i'm joined by larry barclay.

good to see you again. blanchard is saying that the u.s. is driving the global economy and that for the most part, "the brakes are gone." is your outlook similar.com -- similar? >> typically, yes. like are emerging markets .hina and brazil those countries are finally lagging a bit. i think olivier is right that the recovery is on solid footing in the u.s. may be disappointing some people that thought it was going to grow at three percent. we are at 2.5% or so.

>> the imf says the u.s. is going to benefit from a longer timeframe of lower interest rates. what does that mean for treasuries, particularly given last year's selloff in the bond markets? >> i think last year's selloff was a good thing. the one place we saw a bubble was in fixed income. even with growth at 1.5% to two percent, and even inflation at 1.5%, 10 year treasury yield at 1.5% were too low. that was encouraging some excesses in terms of leverage and borrowing. now with the 10 yield -- the 10 two treasury at about percent, that is consistent with reasonable growth. and it also makes investors have better head than they did before. yields could not get lower. i think they are pretty reasonable levels right now. and i agree with the imf. we are in a lower inflation world, and a lower growth world.

and that implies a lower yield. in the next couple of years, you will see bond yields creep up. but the fed is not going to keep rates at zero for ever. >> right now, checking my bloomberg schumer -- terminal, at 2.68. what are investors looking for to ignite stronger global growth? will that growth have to be initiated by measures undertaken by central banks, more stimulated measures? ive measures? in theth is happening u.s. and in europe, and that is why it looks better. the european central bank is just not doing enough. let me put it this way. they had a surprise cut in rates last november. that was smaller than the amount to which inflation surprise on it down side. in other words, real rates have

gone down to my despite the rate cut. and that is one reason why the euro has been strengthening and not weakening. as a matter of fact, the euro has been strengthening in the last year or so. that is not good for the area economy. the ecb needs to do more. when you see inflation at the report five percent, that is getting awfully close to zero or negative. any to take some action. that would help the currency to go down and it will help the economy and could be the best thing that could happen for world growth. >> you don't see a selloff in emerging markets as a major risk to global markets. why not? x we see this as a natural curve -- >> we see this as a natural curve to the market. we were very much in favor of emerging markets and favor them over developed markets. we switched around a couple of years ago because we do think that emerging markets like china have passed their grosbeak. monetary policy is tightening, not -- have passed their growth peak.

monetary policy is tightening, not loosening. there is no room for growth. and as you know, monetary policy is still super supportive and to the left markets. -- in developed markets. here is what is supposed to happen. flowsf warned about abdel outside of emerging markets. that has been happening for over a year already. seeing outflows into emerging markets, very consistent with the business cycle. we don't see a crisis coming out of this. >> in 20 seconds, the fed is going to release the meetings from march. do you expect any surprises? >> i do not think so. the fed has been pretty clear about where they are going. people got upset by some hawkish comments from yellen, but rate rises are nowhere in sight. meaning, you will not the it this year. >> larry kantor joining us from his office out of research at

barclays capital. it's always good to have your perspective. up next, we will get to a market update on this tuesday. ♪

>> and this reminder, there are multiple ways to watch bloomberg television is that we are on the , on youroomberg.com mobile device, apple tv, and amazon fire tv. in health and medical news this tuesday, eli lilly in japan has been ordered to pay $9 billion in damages over a diabetes drug linked to cancer. a federal jury found that the two companies had to be cancer risks for their drug that used to treat type two diabetes. the award is the seventh largest in u.s. history, based on data compiled by bloomberg.

there's a possibility that never will be reduced. we are coming up on 26 minutes past the hour. that means that bloomberg television is on the markets. my colleague alix steel joined me. taking a look at the board, we are a mixed picture on wall street. >> it is. we are actually eating up a little bit of us seem -- of steam to the downside. the dow jones is slipping into the negative. right now, i'm showing that the down is down by about three points. you could call it relatively flat. s&p, you actually saw financial slipping into negative territory as well. but still down nine percent from its most recent update. one company we want to highlight for you, cvs. the pharmacy chain has just reached a $20 million settlement with the sec over claims it misled investors. the regular had accused cvs of numbersntly revealing

from its documents. cvs says the matter is now fully resolved and it won't be required to restate earnings. on the markets again in 30 minutes. more "bottom line" up next. ♪

>> welcome back to the second half-hour of "bottom line." let's check some of the top stories we are following at this hour. ukrainian officials say an unnamed radical group is keeping 60 people hostage inside a government office in the eastern city. security said separatists are inside a security branch and are threatening them with arms and explosives. searchers in the indian ocean failed to pick up more of the

faint sounds that may have been from the missing jetliner. the signals were first heard early saturday and sunday and theked hope at finding debris, but they have picked up no trace of the sounds since then. and is there a new fad in san francisco deco for some reason -- in san francisco? for some reason, people are flipping smart cars. police are trying to determine if it was a prank. it could also be an example of growing tension among some residents who blame the tech industry for the rising cost of living in the city. that is a look at the top stories in the news at this hour. general motors are facing -- is facing a national -- a massive onall him indicating work the cars would begin yesterday. but as of this afternoon, no dealers had received parts to begin repairs. matt miller has been covering this story. he joins me now with details. what is going on?

we have called around to dealers all around the new york city area, all around the washington, d.c. area to try to figure out if anyone had these parts that were reportedly going to get there yesterday so that work could begin to repair the 2.6 million cars that were affected with this faulty ignition issue. none of them did. a lot of them said they did not even in cut general motors had mailed them out yet. that is not necessarily a problem, because this doesn't have to be fixed immediately. it is just a problem because of the public-relations issue that gm faces. as far as the ignition switch issue, the ceo said in front of congress last week that as long as you remove your keychain and extra keys and just use the one key in the ignition, you should be fine. she even said she would let her son drive one of these affected cars. she does not see any serious issues. it is not about the speed, but

how they do it that is key. >> you have reached out directly to gm. what did the company have to say about the delay? >> i call them and they said it is not a delay. they said, indeed, the parts are on their way. some 50 dealers that we spoke to must have somehow been misinformed. they have always indicated that it will be the week of april 7 and not april 7 itself that they start these repairs. by that definition, as long as they start by next sunday, they should be ok. but again, we have called so many dealers here -- actually, 47 or 48 was the number that we called. none of them said they were even ready to start doing it. and to be fair, these fixes will go out until at least october, at the earliest. it will be quite a long time before they get these things fixed. did you hear about the mazda recall? go ahead. >> martha has recalled 42,000

cars and the problem they have is yellow sack spiders. apparently, yellow sack of spiders have found their way into maas the fuel lines. they make a web in the fuel lines and then air cannot escape and it causes the engine to stall out. mazda has to figure out a way to keep spiders out of their cars. this has happened before. correspondent and arachnophobia correspondent for my matt miller. guest joins me from his office here in manhattan. welcome to "bottom line" and thanks for your time today. ofore we get into the meat this story, we did learn within the last 30 minutes that gm has declared a $.30 per-share quarterly common stock dividend. i would like your reaction to that. gm has definitely been paying a dividend. we think that is in line with

citations. no big surprise there. >> all right. let's move away from the headlines about this gm recall story. what is the longer-term story here? biggest issue, as alluded to on your reporter segment a bit earlier, is a long-term reputational risk. recalls happen all the time in the automotive industry. it is clearly unfortunate that lives were lost here. but the negative headlines that have remained in the press and in the media for so long here, we are beginning to fear that as this persists, it can cause real it will,nal damage and in turn, keep buyers away from gm showrooms. and that can lead to share losses. we think reputational risk is the biggest potential impact here. >> the ceo made a point of telling members of congress that gm will address the issues, fix them, and move forward.

she said more than once that this is a new gm. but after all of the press and the reputational damage that you alluded to, will the public be able to tell the difference? key question, really. i think the general public may have a different -- difficult time to french hating old gm from new gm. it is becoming quite evident that the business practices of new gm are different from when maybe -- what may be transpired nearly a decade ago, but the average consumer may have a difficult time making the distinction. ,here is risk for share loss clearly. we have written about this fairly extensively. said, we have not really seen a move here in march. we are clearly watching april be anto see if there will impact. >> and you know that gm stock has lost $6 billion in market cap thus far. it share loss, the biggest threat to the company?

is that what you see? and what is your 2014-15 earnings estimate for gm? >> we think share loss is the biggest potential impact going forward. as you correctly pointed out, since the ignition recall has come into greater focus, the stock has lost about $6 billion of market capitalization. you can slice that any which way. maybe there is a potential settlement embedded in the stock. it could be $1 billion to $2 billion. what is left over is related to implied share loss. our numbers show that every 50 basis points of share losses is about $500 million in ebay it -- ebit. in real dollars, that translates to about $1.8 million. there is some potential loss here. >> you like the strategy of

price over volume. why, and is the timing right? price overy, we like volume. when you choose value over price, what you end up doing is generally raising the incentives. we think that has flowed through fx to lowering the residual value and the perceived value that a consumer is actually willing to pay. we do a lot of work on total cost of ownership. if you begin to degrade the value of your product via price, then it becomes a more difficult proposition to get the consumer to actually pay for your product when you have new and improved product. we have seen this strategy worked numerous times in the automotive industry. ford is a great example from the middle of last decade until now. they have really moved up. hyundai as well. they have really improved their residual value. the difficulty we think gm may encounter is that the u.s. automotive demand is ending -- entering the later innings of

recovery. overall, as the competitive -- the environment gets more competitive, we think it will be difficult for gm to keep that strategy. >> in our final 32nd, what about overseas? second, whatal 30 about overseas? >> europe is clearly a turnaround story. we think gm is doing the right things there in terms of restructuring and focusing the brand. they will focus on the opel brand. and we think they will get to breakeven profitability by the middle of the decade. in china, gm is well-positioned. growth there will not be as robust as the past couple of years, but the company is well-positioned there. coverage -- heads coverage for the auto market a for rbc capital. thanks for your time today. coming up, our investor incentive for another ipo tech

let down. our investors headed for another ipo tech letdown? ♪

>> this just in. we wanted you to know that bloomberg is the only business service being offered on amazon fire tv. and remember, if you missed any of our interviews, you can now watch them on bloomberg on apple tv. it features live streaming and on-demand videos. it is time for today's latin america report. bmw is looking to open a second north american factory full stop the world's biggest maker of luxury vehicles has been narrowing the list of locations with at least two sites in mexico still being considered. the german automakers have already spent a billion dollars to expand its plant in south carolina. in other news, the opposition in 1 -- in venezuela has said that talks with the government to end the two month-long protest must be televised and set an agenda. this after nicolas maduro

offered to meet his opponents without "previous conditions or agenda. by a had been proposed group of foreign ministers. the crisis has left at least 39 people dead. that is sure latin america report for this tuesday. last week, israeli digital advertising company mental me media had toi withdraw because of volatility in the sector. correspondent spoke with its ceo over in tel aviv. >> in the last two weeks ago at a very good response from local ourstors to invest in company. we cannot control timing. hernandez -- around us and the shares went down very

heavily in the past two weeks. i feel people have lost their appetite to invest in companies like in the field of the internet. may be the other ipos have either lunch to a degree. the money that could have gone went there first. >> i'm not sure. competing with one company or another, and we are a different type of company. in many ways we are not in the same universe. it is not comparable. but even with that condition around us with the markets running down, in a sense, we were able to recover $400 million that came from a very top investor in the u.s., from the european community, and from israel. that we cannot go to

theprimo listing, because shares and coverage were not enough to float. >> you said you had enough money on the table from investors, but not with the euro at 25% in the economic area. did that make you think that maybe you should list in the united states on the nasdaq, for example, and then not have to worry about that kind of thing? >> i think the reasons we told -- chose london in the first place are still valid. we are not just looking for growth, but also stability. it makes more sense to go to london, which appreciates companies like us. , when you'reg looking at companies that are just growing, but not profitable in that sector, i think people will be more appreciative of a company like us that is growing. matomy with my

colleague in tel aviv. up next, another special series "made in america." inside mastercraft to show you how world-class boats are made. ♪

>> now another edition of our bloomberg series "made in global" where we look at companies that choose to manufacture in the united states and why. mastercraft is the largest producer of wheat board, ski, and powerboats in the world. than 30 both in more different countries, but it has kept all of its production in one factory in tennessee. ♪ >> we make very high and water sports enthusiast toys. of we make a wide variety boats for wake surfing and wake orting. -- wake boarding. i am the president and ceo of mastercraft. there is such great availability of labor.

competitive environment for us. this is a low-cost placed to manufacture. a large majority of our dealers are on the east coast. there has been a push to manufacture abroad, however for our product we think the control quality -- to control quality is critical for us to manufacture supply locally. >> this is where the workingman build things. you want to build right, you've got to build in america. >> it happens to be a boat building mega-with easy access to water. ecca- boat building m with easy access to water. have easy access to the mississippi. >> we spray the colors that you see on the outside will stop they go on a mold first, then it is reinforced with fiberglass and we pull it out of the mold. the boat is built into parts.

the deck and the whole -- hull. when the work is completed, we will literally pick the deck up and put on the whole --hull and screwed together. >> it takes a lot of man-hours. we do not have any robots here. >> there is no better skill set than the people here. >> now i look like the boat you are familiar with. not only is the performance of the boat important for our comp -- our customers, but what happens behind the boat is equally as important. >> we water test everything will boat that we manufacture. .e are out on the lake we will get to enjoy a little bit of surfing. >> boating is a lifestyle. we get to do what we love every day. it is not work. with us. another check of the market movers is on these other side of the break.

"bottom line" returns 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 line" on bloomberg television. i'm mark crumpton in new york. inc. for joining us. "on the markets" is next. i will see you tomorrow. thet is 56 at the market --

hour and we are on the market. i'm alix steel. the nasdaq slipping back into positive territory about an hour ago. it had been in the negative territory will stop the s&p is up about 30 points. overall, trying to shake off the three-day slide that we saw in this talk. we want toouple highlight for you. first, amazon won a giant court amazonthat claimed instant video infringed on two patents. and shares about kior actually trading higher ahead of its earnings, which are due -- of alcoa are actually trading higher ahead of its earnings, which are due out today. as we wait for those earnings, we do want to take a look at the metals and mining sector. joining me for more, senior analyst ken hoffman. co--- with alcoa's

exposure to aluminum, it is pretty unique. sales are down. toommon thought has been stop production. what do you think? beaten five quarters in a row. a lot of people are looking at that and wondering if they will do six in a row. the industry is going through a lot of consolidation. on the negative side, there is a lot of aluminum capacity coming on, particularly in the middle east. smelter in saudi arabia that is turning to ramp up. in the meantime, they are turning to slow down capacity. but the three that are coming in the the -- are automotive sector. what if the whole u.s. truck industry goes aluminum? a new source of business for them, while industrial uses may not be as strong. overall, though, if you take a look at the commodity markets,

it has been ethical for 2014. nickel is up 20%. gold up eight percent. but copper is down 10%. when you take a look at the markets, what is the biggest thing you -- theme? -- in the thing is last decade, everything went up or like last year, everything went down. now it is sort of a mixed bag. nickel is up a lot because of an indonesian ban on exports. you have seen copper down quite a bit on extreme worries about what is going on inside china. and gold, you are seeing that rising a sickly because of what is going on in terms of import -- rising basically because of what is going on in terms of imports into india and china. it has made it difficult to know what metals to go after. ?> do you see this continuing it is unusual to see each trading on very different fundamentals. >> it does seem to be. it seems as if each metal will have its own fundamental and each will move in its own direction.

i was talking to an energy analyst who said the copper-oil, which usually trade together, in the last year have completely blown apart. each metal will have its own path. >> and in terms of economic factors, will it really be about china? will we start to see metals move more with the fed and the dollar? weak ofollar is very late, and that does help certain metals like gold. china on industrial metals will be very important. , then worry about ukraine it is going to be precious metals. each metal will have a different factor. >> ken hoffman, thanks so much. we are on the markets again in 30 minutes. "street smart" is next. ♪

>> the nasdaq rebounds as facebook, google, and ebay gain.