>> >> the intersection of business and economics with a mainstream perspective. four-already kring talks and what is the deal? shopping for tesla in your nearest shopping mall rated i will be joined by the ceo of hyundai motor america. to our viewers here in the united states and those of you joining us from around the world, welcome. yang yang has details on the cbo's analysis.

peter cook and to liana gold on a roundtable toward de-escalation of tensions. let's go to geneva as secretary joinste cary -- kerry discussions on ukraine. said it was kerry just the beginning, these talks today. the four parties, the united states, the european union, legallynd ukraine -- he armed -- illegally armed individuals in ukraine must disarm. they agreed that all government buildings that have been occupied in the southeast of the country must be freed.

some interesting agreements today. all of them very easy to verify. said, if he did not see action by the russian side by this weekend, he will introduce more sanctions against russia. thery special guest, foreign minister of ukraine joining us now to talk about this breakthrough, if we can talk about it today. thank you for joining us. how big of aith deal is this. does this mean that everybody can stop worrying about the situation in ukraine? the initial steps in the process of de-escalation of the situation in ukraine. concernedtinue to be about the activities of these paramilitary troops in ukraine. we are very much concerned of

the deployment of russian troops on the ukrainian border. and we think that during the will be crucial in implementing this agreement that we reached today in the process of the situation. >> what is your hunch? will the russians comply? itself to bemitted part of this process are they support of the overseeing monitors. we are ready to start this process immediately. >> you also agreed that you ultranationalist groups of but also people who were in independence square who got used to carrying weapons and are still carrying weapons around the country, some of the factions in ukraine. can you really pull that off? >> we have to start first from

the regions where it is effective with terrorist activities. but i think ukraine has to get rid of this reference and it will do this. we sawe zones from here, putin speak here today. he said interesting things. he said that he hopes he will not have to send russian troops. > you are skeptical. if we look on what is going on in western ukraine, it is the same as in crimea. that theo said southeast of the country used to be part of the russian empire.

in 1922 did the soviet leadership arbitrarily give it to you train -- to ukraine. some people say it sounds an awful lot like the pretext to go into crimea. it is a very worrying signal because we are now -- president putin is trying to rewrite the borders. borders that are internationally recognized after the second world war. and after the dissolution of the soviet union. russia and ukraine recognized each other's borders. for history in the past, we have to realize what territory belongs to a country. it is very worrying. >> thank you very much for taking the time. we will have to speak again next

week to see if these people actually give up their weapons and leave the buildings. >> hopefully. that would be a very good step. right, live in geneva, thank you so much. with more on the talks in geneva and the next steps in the ukrainian crisis, i am joined by julianna goldman. she will travel to ukraine with vice president biden next week. , has the white house had any reaction to today's developments? >> i just heard from an administration official who thought that the geneva talks went marginally better than expected but we are really in a weight-and-c mode right now. but how long should we expected take? a matter of days is what they are saying. the administration is somewhat notmistic but they are

going into the stocks with high expectations. it will be a matter of days before they know whether or not this is progress and whether they will move forward with another round of sanctions. , does it seem they are really on hold at least for now? >> we definitely got that message from secretary kerry. we got the message before the stocks that, if there were not talks, here there would be substantial sanctions. if the product on paper does not turn into result on the ground in ukraine, the united states would be prepared to step forward with more sanctions. as for the european union, we are talking days, not weeks. >> the administration has working on two tracks.

they have been working on the track of targeting putin's inner circle, cronies, oligarchs and their entities. and then saving in their back pocket the sectoral sanctions. heeding russia's energy industry, hitting the banking industry as well. they say they are keeping that only if russia escalates, only if russia goes further into eastern ukraine. ukraine, into seven what they call a full on invasion, is when they will bring on these sectoral sanctions. theif they judge that geneva talks have not progressed , then they would impose the next round of sanctions of putin's inner circle. >> are they having any affect? is this what brought vladimir putin to the table? >> that is the argument we have

heard from some in the administration. these have isolated vladimir putin and made him think twice about the steps he has taken so far. we haven't seen putin change anything on the ground. have had aneve they impact in raising concerns about the russian economy. we heard the russian finance minister this week downgrade even a economic growth numbers for this year. that they perhaps will not grow at all. and they do believe that the sanctions have had an impact and the threat of additional sanctions on banks and access to the financial system, that those could take a further toll. even though his popularity numbers are up in russia, those who keep an eye on the russian economy, they have vladimir putin's ear as well. >> have we heard about any possible legal assistance? >> they say the u.s. is in a position to aid ukraine more when it comes to economic to

help propping up ukraine's economy. they said, if they were to send any military-type assistance, they would send some troubling signals. it would say this as a proxy war between the u.s. and russia and it would also send a signal that the u.s. thinks this can be solved militarily, which is certainly not what the u.s. wants to be sending. >> there are members of congress who believe that legal aid is still in order here and some of the debate going there, you have republicans going to ukraine, a congressional delegation going to ukraine at the same time that joe biden will be there as well. >> speaking of the vice president's trip, why is he going? what is the purpose? >> big picture, to show solidarity with the ukrainian people. having the vice president of the united states over there right now is hugely symbolic. that is what the administration is saying. although he is also going there

to tout the economic assistance. the treasury announced a billion dollars in loan guarantees this week. one of the messages that biden will be bringing there is that this money is not just for kiev but is also meant to help people in eastern and southern ukraine. >> peter, you spent a lot of your time on the hill. what is the united states congress's position in all of this? is there a bipartisan consensus that something needs to be done at this point other than just sanctions to ease the situation that is going on there? >> there is a bipartisan consensus that this is a compensated situation and that russia has done the wrong thing here. and that is about where the bipartisan consensus ends. there is bipartisan support for the new ukrainian government but there is disagreement within the republican party about how big a deal the ukraine is, how involved the u.s. should be, with lethal assistance really should be on the table here.

some folks on the hill agree with the administration that that is not really the right thing to do at this point. disagreementome that no one is really proposing an alternative to what the president has done so far. >> thank you both so much. coldweek on "lyrical cap -- "applico capital with al hunt -- >> i think in his mind, he thinks there will be some hollowing out of that government and reducing the ability of the government to really have a coherent state that they can control. i think that is his ultimate goal. i think he will continue to have his forces on the border. i think you will continue to agitate. and i think the united states and the west are at a disadvantage. al hunt interview

with the former defense secretary william cohen on "political capital" at 9:00 p.m. washington time friday night. coming up, detroit's road to recovery. emergesalk with the from bankruptcy.

appears closer to reaching more grimace with creditors as it works to shrink its $18 billion debt. jane gridley is the primary analyst for the city of detroit at standard & poor's rating service and she joins me now from chicago with more on the story. welcome back to "bottom line." and expense notwithstanding, where is the city of detroit right now in the bankruptcy process? >> we are somewhere along maybe about the middle, hopefully heading toward the end.

the original schedule had said they would emerge very quickly, within about 14 months. we are winding down their. but the pace has really picked up the last couple of weeks with a lot of settlements coming in with some of the major creditors. ,> is there a possibility that despite all of the best intentions, the process of reemerging from bankruptcy that could negate any short-term benefits -- is this basically surgery by scalpel or surgery by hacksaw? >> i think it could fall in either camp. certainly the longer it takes, the more money it costs in terms of legal fees and other things. and the mormon -- the more time it will take for the city to get back to business as usual. the pace that it has been taking is quite a bit faster than we see normally in municipal bankruptcies. there are not a lot of them, but the ones we have seen draw out for quite a long time. >> this bankruptcy has to be wrapped up by october.

but if it's not, what then? will the length of the process mean that perhaps more taxpayer dollars have to be used? >> it could if it extends beyond the end of the current emergency manager's term. there could be some momentum loss, too. what we have seen with some of the settlements, with the unlimitednd and the tax geo bond holders, those are movingof things along and going a long way to bring creditors to the table. >> some significant breakthroughs this way, most notably the city receiving the support of pension funds and the retiree group to reduce payout to thousands of former city employees. what impact will detroit's plan of adjustment have on the city and on the municipal bond market if any? >> one of the things we have

seen so far is the pensions having supplementary settlements. again, most are pulmonary and it is not finalized and rolled on, that they could still change. but having it out there helps move the process along. the other important things we have seen include the settlement on the unlimited tax general obligation fun, the ability to tax an unlimited amount to repay that debt. one of the questions is whether that would be considered secured debt. the settlement they came to would have the court endorsing the idea that that is secured debt which makes a big difference in the bankruptcy process. someere are still concerns, most notably foundations, philanthropists, the state of michigan -- they are supposed to pony up about $816 million to shore up pensions and perhaps, more importantly, to a lot of people there to save some of the city's

art work because there had been some calls for art from the museum of detroit to be sold. where are we in that? >> it is my understanding that is still underway, still in process. that was a key part of the pension, the agreement when the police and fire pension, that of theuld accept some cuts that they had inside the cost of living increases in order to make sure that the money is in the grand bargain is part of the settlement and is available to some of the more vulnerable retirees. >> what about the reputational damage to the city of detroit? how long does it take credit agencies and the credit markets to have confidence in detroit bankruptcy plan going forward? >> that is a really good question in terms of the credibility and the credit standing of an entity after emerges from bankruptcy. we will still be watching to see what happens in the rest of the bankruptcy process. afterward,he rating

willingness is an important part of our criteria. we will be looking to see come in terms of what the city could pay, has paid, what the landscape looks like going forward, are they going to be in a position to be able to pay on their pensions and other things and keep a structural balance. and those kinds of things are what will be key in terms of improving credit quality once they have emerged from bankruptcy. >> we have about a minute left. , know you are into specifics specifically what you see on paper, data-driven numbers, statistics. but if you could, talk to us about may and june when some of these deals have to be voted on. if they are not agreed to by a majority of some of these retirees, these pensioners, are we not back at square one? and then is the ball not been in the back strip the -- the bankruptcy judge's court? >> yes, that is a possibility. if they ask for a vote and do

not get enough buy-in from the creditors, then it would have to go back to square one. there is also the concept of fair and equitable. that is something that the judge has to rule on in terms of whether or not the plan does treat everyone fairly and equitably. although the emergency manager is looking at how pensions are treated compared to how bondholders are treated, we still think from a musical standpoint that that is important. and it could also be important in the courts as well. >> jane ridley, primary analyst for the city of detroit joining us from chicago. it is always a pleasure to have you on and get your expertise. thank you for your time today. coming up, we will take a look at the equity markets on this thursday.

>> it is 26 minutes past the hour. bloomberg television is on the markets. we actually have gotten a little leg up here on the market, a little bit more on the positive side. we've got earnings of people are looking at today coming in better than expected. and people watching the situation, ukraine and the meeting over ukraine, very closely. take a look at individual stocks that we are watching. first up, herbalife, shares of the nutritional supplement company he raced their earlier gains and now they are lower after illinois attorney general said an investigation is underway into consumer complaints that the company has an illegal permit structure following on the news that the fbi was looking into the company's practices. we are looking at morgan stanley.

a 9% increase in net income trading revenue. we will have more on the markets in 30 minutes. more "bottom line" coming your way next.

>> welcome back to the second half-hour of "bottom line" on bloomberg television. let's check some of the top stories at this hour. coast guard officials in south korea say 179 people survived the sinking of a fairy off the country's southern coast. there were 475 people on board, mostly high school students. but right now, the confirmed death toll stands at 9. one crew member said people were not told to evacuate until 30 minutes after the ferry began lifting. and some survivors said they never heard an evacuation order.

sean kearns, rain and poor visibility are hampering rescuers for searching for the 300 people still listed as missing. investigators in the search for malaysia airlines flight three that an that -- 370 say oil slick was tested negative for aircraft oil or hydraulic fluid. the oil was collected earlier this week from a slick about three miles from the area where it equipment picked up underwater sounds consistent with an aircraft black box. there was hope that the oil would be evidence that officials are looking in the right place managed en route from kuala lumpur to beijing. jobless claims continue to be near prerecession levels despite the slight increase. applications are a proxy for layoffs.

the current level of claims suggest that employers are holding onto their workers with the expectation of stronger economic growth ahead. that is a look at the top stories in the news at this hour. >> we should be vastly impatient. this has gone on. if you said in 2007 that more than six years after the recession begins we would still be talking about an economy with high unemployment, sluggish job growth -- there hasn't been a single month that i can remember where we created as many jobs as we did during an average year during the clinton administration. this is crazy. the idea that they should be considered an acceptable pace of harbors is really, really wrong. >> paul krugman discussing current u.s. economic conditions with tom keene. the congressional budget office, congress's non-budget scorekeeper, has reviewed the

obama 2015 budget and the results are in. yang yang is in washington with the details. no major surprises in this latest cbo scorecard. budget request's would boost tax revenues and in turn cut deficits. if enacted, taxes over the next decade would increase by nearly $1.4 trillion and deficits would be cut a little over one dollar trillion. that is -- over $1 trillion. when you look at the baseline and the residents plan side-by-side, you see the deficit as a percentage of gdp would actually be higher over a three-your period under the obama budget and then lower for years 2017 to 2024, staying close to 3% compared to the baseline 4%. so the president's plan has that

going for it. it cuts the deficit by $1 trillion over 10 years but it would only keep with current deficit trends. >> the white house came out with its own projections when it was released last month. how does that stack up with the cbo? >> under the obama budget to be more than $6 trillion over the next decade. that is over a trillion dollars more than the white house's own projections. the reason for that discrepancy is because the cbo expects lower gdp, lower wages and lower salaries, meaning lower tax revenue. so a less rosy picture for the economic outlook. but given the nonpartisan nature of the cbo, differences in the two projections were expected. >> with a divided congress, the president's budget has no chance of passing. >> that's right, no chance, but congress is considering several measures within the president's

budget, immigration reform being one of them. while this particular budget is look iswhere, today's what it could be. we will see these numbers emerge during the midterm election. paul ryan with his own budget plan released a statement saying this new report is just more confirmation that the president's budget would take us in the wrong direction. so more proof the budget battles are alive and well in washington. >> yang yang in washington. thank you so much. when "bottom line" returns, hyundai soups up the sonata. joins me when we come back.

>> it's time for today's latin

america report. the numbers confirmed two separate surveys over the past month that showed faster inflation and slower growth eroding her support ahead of general elections in october. recessedevaluations of seff. rous the mayor of your dictionary says his city is on track and planning for the 2016 summer olympics, his comments come after the heads of several sports federations expressed concern about the pace of progress. the executive director of the international olympic committee and other officials will flight to rio to oversee and consult with local planners to get a first-hand look at the situation. that is today's latin america report. let's turn to the auto sector.

starting this week, you can no longer buy a tesla from one of the automakers stores in new jersey. autonation ceo mike jackson told betty liu that tesla should be given the ability to bypass dealerships and sell its electric cars directly to consumers. guy am a free enterprise and there are no existing tesla dealers to be harmed. so if he wants to launches vehicle with a direct model, this is america. he should have the right to do that. threat think that is any to existing franchise system which i think is the most efficient and effective for both the consumer and the manufacturer. and i believe also when he wants to higher volume, he will ultimately turn to the franchise system. >> the garden state is the fifth state to ban tesla sales saying that they infringe on auto franchise laws. but you can still buy a tesla here in new york.

so what is the store experience like? >> most people go to a dealership when they are shopping for a new car. but if you want a tesla, you had to the mall. >> welcome. >> thank you. the tesla store in west chester sits between two retailers. >> the beauty of some of the stores is that many people schedule schedule a -- a test drive before coming to the store. you see a beautiful car in the shop and want to come in. >> the real reason tesla set up shop in your local mall is that it would be prohibitively expensive to build a national chain of dealerships. but just like in a dealership, you can take a test drive before you commit to what is likely to be a six-figure purchase. teslas are in the mall parking garage. but you get to drive them on the

open road. oh, man. that is insane. like a spaceship, right? there is no sound. i have to say i am super impressed with the pickup. we could waste of this mustang right now if we wanted to raise him. i want one. then it was back to the store to configure my dream tesla. >> imagine you wanted to max out. we have a button for that. so folks who want everything included. >> with all the bells and whistles, my car costs and just north of $130,000. it's a little out of my budget, but the next time i get a raise, i will be back. >> it takes us about two to three months to customize a car. some people customize their vehicle here in the store and then you go to a service center to pick it up. >> not here at the westchester mall. >> what is nice is we have folks who can walk you through the car, how to charge it, how to take care of it, how to clean it.

>> if you hate going to the mall, you can always buy a tesla online. you can even use paypal to pay for it. hyundai, south korea's biggest automaker, is betting on the sonata to boost sales here in the united states. the company unveiled the latest model of its popular sedan at new york's auto show. dave zukowski joins me here in the studio. only one i am not the who has mispronounced your name but we will get to that another time. talk to me about the strategy behind sonata. >> it is a natural cycle for, for years. we are a different company than when we first brought the car out. our brand opinion is higher. we have had tremendous growth in the past five years. a lot of that growth has been driven by the sonata. so it is now time for a whole new sonata. it is a completely different vehicle, dynamically, road

noise, it has eliminated completely. a little more elegant styling than what you may have seen in the previous model. >> you talk about brand awareness. how did that happen? i turn on my tv and i see hyundai commercials all day long. >> it is part of it. we have come out with some tremendous products in the last five years. the selling has been beautiful. ibo have taken notice. we have always had a great value proposition and great fuel economy and great value for the dollar. it is just a combination of everything. >> who is the spokesperson on the commercials? >> jeff bridges. >> that doesn't hurt. one of the positive signs we have heard about the u.s. economy is that auto sales are up and that gives us a sense that consumers are willing to open up their wallets and spend on big-ticket items.

what has been the sonata selling point? is there one thing that is bringing people into the showrooms and saying that is the car for me and my family? sort of redefined the mid segment where you did not have to be an appliance or horsepower,great quality and beautiful styling. the midsize segment used to be a sort of generic in style. >> it is a sexy looking car. you have done that but that was in -- i guess, with these suburban family in mind. but mom and dad driving it, they know they will look good behind the wheel of his car. >> we like to think of it as no compromises. -- wereat styling and didn't give up horsepower. we didn't sacrifice on quality. i think our claim to fame in that segment overall is that it is jim and his value with no compromises.

, gm has been in the news because of the recall on ignition switch problems. you talk about some of the new things going into the sonata. is there perhaps a backlash, an effort to be more technologically-driven? could that cause more problems than you need? complexutely, these are machines. something can go wrong and it is important to understand the technology that is in the and you are seeing more and more proliferation of recalls. cars areot because getting worse but because we are trying to head off potential problems and get out there immediately. it is an indication of how complex the car has gotten. >> sosnick you want to get ahead of the curve. -- sounds like you want to get ahead of the curve. are recalls done?

>> how quickly we identify the problem, it is a very clear protocol. we are on top of it. we are very proactive. >> does the protocol call for you to be more proactive? >> it is becoming that way now. recently, in light of the aegean situation, more and more seefacturers are looking to if there might be a problem and it is time to come clean. >> we have to mention you are the new guy. you have only been a ceo for four months but you were the head of hyundai usa. how did that help prepare you for your new role? >> it is a sales business and we build relationships with our dealers and that -- and i spent a long time doing that. but we are a fairly lean company and we wear a lot of hats. this is a different hat with different responsibilities. but the things i brought to the sales side is the same thing we

will bring to the marketing side and a product side. it is knowing the company and knowing the business. it has been a good transition into this job. >> i have to ask about the company's philanthropic efforts. you are zeroing in on pediatric cancer. how did it start and why is it so important to hyundai? >> it started 16 years ago and it's important to hyundai because 16,000 kids a year are diagnosed with cancer. goes intol research this. 4% goes into children. we donated $86 million. >> the started by a couple of dealers in new england and a branched out. >> it is natural -- is national. our dealers have embraced this. >> is this -- is there a website if anyone wants to know more about the philanthropic effort? >> you can go to hyundai.com. >> i know you just came across

from the auto show across town. good to meet you, sir. coming up, some kids dream of writing a dash of riding a batmobile. we will explain. hot shots is next.

it is time for a look at the most compelling images of the day. in progress, pet owners thought why not show off their ravaged by having a competition similar to horse jumping? a hailstorm cut the contest short. in italy, a couple of kids got to take a spin in the coolest ride ever, the mobile. he asked if anybody wanted to hop on his car. 211-year-old said yes. in exchange, one of the boys

shared his bag of crisps with the pope.

get the latest headlines at the top of the hour on bloomberg.com. that does it for this edition of "bottom line." i will see you on monday. enjoy your week. >> it is 56 past the hour.

let's get you caught up on where stocks are trading. about an hour left to go. largely the dow is the laggard. stocks are up across the board. strong earnings report helping matters. time for today sector report. tech has been leading the market swings. for more on the market sensitivity on the tech prices, s&p capital scott tessler is joining me from his office in new york. it is an interesting day because we have both google and ibm is appointing. those stocks are down. they are big tech stocks but tech as a whole is up today. does that mean we have broken the down streak? what does it signify? >> i'm not entirely sure. frankly, we think folks have exaggerated the extent of the tech wreck that was perceived to

have happened in the last two weeks, maybe into a month plus. the s&p 500 technology sector five 5% were 6% from the recent low. we don't think that was significant outside of more high multiple and highball the till -- high volatile corners like social media and 3-d printing or software as a service. that do you think broadly it is a good time to get in here after we have seen this recent volatility? or are we going to see more of it? weafter the last few weeks, have taken an opportunity to upgrade some of the higher multiples and higher volatility names, following the significant decline. so names like salesforce.com or twitter or con current technologies are all names that become -- that we have become

less negative on or less positive on. we have a number of names that we are recommending a strong bu y. we still like names like emc and qualcomm. sawou mentioned that you the 3-d printing stock, these high data stocks, which were most effective i -- affected by what went on. these older tech stocks, the steady growth kind of stocks and stay more away from the speculative names? >> i think generally our approach is focusing on some of those core names. it seems over the last couple of weeks, opportunities have resented themselves regarding some of these other names. concur technologies is a stock that fell from close to $130 a share to under $90 a share. we think that they are doing very well in the travel and entertainment product offering

and we see a lot of growth for the company. we upgraded the stock fairly recently. pick your stocks when it comes to some of the higher multiple, higher volatility types of names like occur. >> scott tessler, thank you so much. we will see what tech brings in the coming weeks. we will be on the markets again in 30 minutes. "street smart" is next.

>> we are now four for four. stock site way higher unbeaten run gm the. take neither the close right now. it starts next. >> ok, everyone.