>> from bloomberg world headquarters in new york, i'm mark crumpton. this is "bottom line tur." council meets an emergency session to address the crisis in ukraine. u.s. jobless rate drops in april to the lowest level in nearly six years. 140th run for the roses as the kentucky derby is tomorrow. to our viewers here in the u.s. and those of you joining us from around the world, welcome. we have full coverage of the stocks and stories making headlines. the white house meeting between

president obama and angela merkel. peter cook and michael mckee examine the april employment report. it we begin with an emergency when council meeting on the crisis in ukraine. at the united nations today, it started getting really personal. words were flying and we heard the french ambassador to the when referring to russia as a pyromaniac firefighter. he calls the ambassador and amateur james bond who drinks vodka. were very upset. there was the russians who called for this meeting. --was because of the hiring firing down of two helicopters with ukrainian troops in them. russians had said that any action by the government against the pro-russian separatists is a declaration and escalation that

might prompt russia to bring in peacekeeping troops. we had the russians making their point of view clear and we saw and britishench ambassadors each responding very strongly saying there is no way that the separate test -- separatists are doing what they're doing without support from the russians. the meeting -- we had the u.n. secretary-general going back to kiev next week and calling for the release of the monitors. >> what is the next step for the united states? >> we have a sense at the white lawn on the rose garden when we heard president obama and angela merkel talking about may 25. that key date when ukraine this post about in its democratic

election. eu will bed the backing those elections and of russia does not allow them to go forward or somehow interferes with them, new sanctions will be coming. you heard obama trying to give some word of reassurance to energy markets and energy companies by saying that cutting off pipeline from russia to notpe entirely is realistic. we don't expect that to happen, but we do expect more sanctions coming. >> is military action a worst-case option? has not been entirely taken up the table. we have been hearing about nonlethal aid. >> i think at this point the u.s. administration in europe -- and europe don't have a specific plan b. they're counting on sanctions to eventually raise the cost so much for putin that he is forced to back down. are notpoint, they

thinking of any military action unless a nato ally, poland or one of the baltic states is attacked. otherwise, they can't act in ukraine because not a nato state. nato is a defensive alliance between lansing military action. but some aid in the cards. >> thank you. that u.n. meeting came as president obama and the german chancellor met at the white house. the two leaders warned russia that they are ready to impose more sanctions if russia continues on its current path. phil mattingly has more on today's meeting. good afternoon. >> good afternoon. chancellor merkel just drove out of the white house after more than four hours here meeting with white house officials. the obama administration got what they wanted publicly. a commitment that should sanctions and to expand, the germans would be with them.

both parties acknowledged that the best case scenario would be for these sanctions to serve as a threat. listen to what obama had to say. >> the goal is not to punish russia. the goal is to give them an incentive to choose the better course. resolve these issues diplomatically. we are united on that front. obviously come unite on that front. the question of what sanctions would actually look like. his experts are still working on that structure. which haselationship grown cold in the wake of the nsa disclosures, at least a positive public statements that. >> we had heard earlier on in this crisis, angela merkel implied that president putin was being delusional. that he did not understand the extent of the market and condemnation on russia.

make them an international riot. -- international pariah. >> she declined to repeat the exec statement. she was asked about it. she made clear that she still is uncertain what the direction or what the calculation is t. angela merkel has a closer relationship with the russian leader than anybody that the white house deals with on a regular basis. she's talking to him more than once a week by phone since this crisis darted. she's a key liaison. the fact that she can't quite get a grasp on where the russian leader wants to take things remains problematic. >> phil mattingly joining us this afternoon. thank you. thisther big story on friday, the job creation engine kicked into high gear. u.s. employers boosted payrolls in april by the most in two years. the jobless rate plunged to the lowest level since the collapse of lehman brothers.

employment gain in with the biggest since january of 2012. dropped to six point three percent. the lowest since september of 2008. but get some analysis. we have peter cook standing by. and michael mckee. thanks. we have a tale of two jobs reports. one index shows job creation and the other, job losses. break this down for us. >> the establishment survey which creates -- rates businesses divided the good news. the household survey from which we derive the on implement rate paints a different picture. 800,000 people dropped out of the labor force, pushing down that unemployment rate. -- net job loss during the month. the household survey says 73,000

jobs lost. there is a real dichotomy there somesuggests that there is worry about how strong this recovery actually is. maybe a bit of a weather snapback. but not a real acceleration into the spring. >> there is a big difference between quantity of jobs and quality of jobs. how my today's numbers impact the minimum wage debate on capitol hill? >> the president picked up on it today. he highlighted these numbers and called it -- we heard that message from the white house today. it supports their argument that there needs to be a higher minimum wage in this country. going to change the debate here in washington for republicans are adamantly opposed to that. we sell that break down yesterday in terms of the support for it in the senate. this report is not going to change that but it will add to dynamic.ical

forecast --the fed how is this going to play into that? what will janet yellen be analyzing now? from thehifting jobless rate to fighting to bring up the inflation rate. if we had another month like this on the unemployment side, we would be at what janet yellen would be call full employment. somewhere between 5.5%-six percent. they're looking at inflation as a major power much stack there is in the labor market and the fact that we saw no gain at all in hourly earnings, they fall back a little bit, is worrisome to me because it not only suggests that we still have this inflationary forces at work, we are not seeing the kind of widespread prosperity out of these job gains that would lead you to believe the economy

would excel rate. we're talking about a fan who basically is now not keeping to that threshold. that unemployment threshold. >> it out the window. imagine if they were still holding onto the idea that they would begin raising rates right now. they are nowhere close to that. they are on hold. they're on automatic pilot unless we get something really -- as far as ending qe. still on track for some point next year raising interest rates or at least talking about it. it will look past the report and wait to get additional data as the year goes on. >> we are always reminded of the labor force participation rate. fall.umber continues to some people are becoming discouraged about their job prospects that they have stopped looking for work. did the white house acknowledged this is a problem? >> they see that number and the

e press releases from republicans. as to whatbate still is really driving that. how much of this is baby boomers retiring. it's a problem for the white house to try to explain that away. at the same time, they're thatng at headline numbers bode well for them. heading into this midterm election year -- for congressional democrats who were worried about what would be happening with the economy, they see more numbers like this heading in november, they will feel a lot better about their election chances. the fact we are talking about unemployment in the five percent fede is a concern for the to deal with but it is great news for the white house. >> if we could continue on that front, the labor force participation rate, where is it right now? this past month to 62.8%. the lowest since the 1970's. that's a concern. if there has been a debate in

the academic community about whether this is all discouraged workers or all people at in the baby boomer generation retiring. probably a bit of both. what you did see is the number of people who say they are discouraged workers. that fell during the month. that is good news. where did the rest of the people go? is this a one-off statistical anomaly? if italculated that weren't for that decline in the participation rate, the employment rate would have gone up to 6.8% instead of falling to 6.3%. and peter cook. thank you both so much. the lack of diversity in technology -- we will talk to the founder of an accelerator that is hoping that helping minority and women entrepreneurs transform great ideas into successful tech businesses. that story when "bottom line"

continues. ♪

>> we turn our focus now to the accelerator for my support what form that helps entrepreneurs start thriving businesses. since its large in june of 2011, accelerated over 3000 entrepreneurs across the country, helping them raise $12.8 million in capital funding. the founder and ceo joins me here in studio. welcome. thanks for coming on. the broadcast talking about jobs. we got some dire numbers today. -- oroyment among those 10.5%. a bloomberg lps senior economist put out a note saying the condition of the labor market is being underestimated because of the exit from the workforce of millions of discouraged workers and young people. they have been shut out of opportunities things to what he calls a growing experience cap.

gap.perience >> not only are there not jobs, but a lot of younger students coming out of college are opting to start their own businesses. a's not that there aren't whole lot of jobs. people are creating jobs, not just for themselves, but for other people. we come in and help accelerate that process and give them advice, support and connect them with investors. >> why technology? >> when we look at our economy and where things are going, it's a fast-growing economy and it impacts the local economies. technology is really something that cannot only impact main street america and the world we live in as a whole. >> we mentioned that you launched in 2000 11. raising nearly $13 million in

capital funding. who is providing this capital and how is it being used? >> it is mainly angel investors. early stage capital -- we do have venture capitalists. >> are they excited when you give them the proposals? they're coming in at the ground floor. they get to see what their money is going. >> exactly. they come in very early. think of the next twitter or facebook and getting on those deals earlier. that's the nature of the beast when you're talking about early stage investing. the earlier the better. >> goldman sachs has been supportive of your efforts. what does it mean to have a giant on wall street in your corner? >> it's amazing. when i got the call from goldman the builders and innovators conference and i got an award there. they called and said, we are trying to get in contact with angela benton. it was on. i thought it was a joke.

my next question was like, for what? we would like to give you an award. i'm completely honored. association with goldman, how does that help you raising funds with other angel investors? >> the association helps me personally because they backed me as an entrepreneur and believe in the work we are doing. ably we can actually grow this intosomething small something much larger. >> you have a very interesting personal story. he became a mom when you were a teenager. you have lived the stuff and actually have had to overcome obstacles. you are an african american woman. say that therele are too many obstacles that they can to do this, what do you tell them? in being're interested

an entrepreneur, the obstacles help you. it's extremely hard. it's a lot of ups and downs. it's an emotional roller coaster. you have to be resilient. all of the obstacles that you are experiencing translate directly over to entrepreneurship. you get told no a lot. you have to be extremely scrappy . you have to have a lot of faith. >> the young people understand that? >> some get it. a lot of the entrepreneurs that we deal with have some sort of personal story where they have had to overcome some kind of obstacle. those are the people we look for. we want to bet on those folks. >> part of your mission is to change the status quo. another way to put that is to understand entrenched interests. they don't like change. sometimes it's all about who i know, people who look like me, people who are gender specific

like me. how do you affect change in the face of those obstacles? >> are selling point is that we are finding highly entrepreneurial, raw talent. ,e focus on african-americans latinos and women. when you're thinking about how that translates business, if you can get into deals earlier, investors are seeing the same deals inside and out because we are buying into a different market and identifying unique ideas. benton joining me in studio. a pleasure to meet you. up next, julie hyman has an on the markets check for friday. ♪

a reminder, there are

multiple ways to watch bloomberg television. we are on the web at bloomberg.com, on your mobile device and apple and on amazon fire tv. this week on political capital with al hunt, transportation secretary anthony fox talks about the highway bill, rail tanker safety and the looming cliff facing the highway trust fund. will become fund insolvent as early as august. before then, many state deities are going to be letting contracts and making decisions in june and july. >> you can see the full conversation with anthony fox on political capital with al hunt. tonight.:00 p.m. we are approaching .6 past the hour. that means bloomberg television is on the markets. here's julie hyman. >> let's take a look at where

stocks are trading right now. we have the payroll report this morning. you would think we would see more action in stocks in the wake of that report. which was largely better than estimated. we have turned a bit lower here. it's still not as much change overall in the markets. a lot of trepidation going into the weekend for investors and traders. situation inicate ukraine. affecting to be trading today. take a look at pfizer. the pharmaceutical giant sweetened its bid for astrazeneca. the company is still saying no thanks. astrazeneca argues that the offeror still relies too heavily on equity. markets also grabbing headlines. bayer is going to buy merck.

the two sides are still ironing out the details. reports a deal is likely to be announced in the next couple of days. we will have more in 30 minutes. ♪

all come back to the second half-hour of "bottom line." i'm mark crumpton. thank you for staying with us. you turn our focus to public pension plans. durban institute analyzed and rated 660 a look pension plans and found that many offer little retirement security for the nations 19 million government workers. richard johnson is the urban s director of policy. thank you for your time today. how did you come up with the results for your findings?

what information was omitted your database? >> we went and collected lots of detail oriented information on these plans and financial information. all of this is publicly available data. >> your analyze asian found ation foundalyz what? look at how to these plans are doing and how they are serving workers. benefits inivering the most efficient and equitable way? one of the things we found was at work for long-term employees, portrait from employees, not nearly as well. that creates problems as people change jobs more frequently. they are not staying with the employer their entire career. stateas struck by this

breakdown. which states are making the grade and which ones need to show the most improvement? >> when we look across all dimensions, the state that really comes out is massachusetts. have employees don't social security coverage. that hurts them a little bit. they are not making their contributions. that is a real problem. that is putting money into the plan and it maxes out at 80% of the salary. , they gethan 30 years nothing out of the plan. it pushes them into an early retirement. what about the other side of the equation? who is at the top? >> there are no states overall that are doing really well. there is a plan in nebraska that

really rewards work. it doesn't have these crazy patterns. it treats all workers equally. we think that is important. rhode island has a new hybrid plan that is quite good. it combines both the traditional pension and a 401(k) type plan. but ita lot of bad press has desirable features as well. >> what is texas doing right? >> there is a lot of cash balance plans there. that really helps it. with those plans, it's not the traditional plan. benefits are not tied to the final average salary and two years of service. the employee and the employer making contributions. >> what are the structural

problems that lead to these shortfalls? are these municipalities promising too much? >> what is really happening is y are not living up to their promises. they're making the promises to the wrong kinds of workers. being mademises are to the long-term workers and not enough to the short-term workers. they're not putting enough money into the palms to keep them funded. >> as you well know, when pension reform is discussed, the unions cry foul. when promises are made to , whats and then not kept is the financial outcome? >> for workers, it can be really serious. we have not seen many plans actually defaulting. that is the good news.

we don't know what's going to happen in the future. what is really important is how is this going to impact taxpayers in the future? our states going to have to cut back the number of teachers they have because so much of their money is going to pensions to make up for these cash shortfalls? >> richard johnson from the urban institute. thanks for your time and expertise. when we continue, we talk kentucky derby. ♪

>> be sure to check out the latest edition of bloomberg businessweek. hits newsstands today.

it is time for today's latin america report. panama's presidential contenders are winding down their campaigns ahead of the may 4 election. looming over the boat, strike by construction workers has paralyzed the expansion of the panama canal. voters saying inflation is their top concern. construction workers walked off the job april when he fifth in an effort to win 35% salary increases. the move threatens to further delay the canals expansion. it will accommodate ships that are 25% longer and more than a third wider than the biggest ships that can use the canal today. the most expensive ingredient in a margaret is not the tequila, but the lines. cost tripled in the past month. before cinco de mayo. lime places are searching with growers in mexico banding

together to set prices after a crop disease ravaged trees. that is your latin america report. now a bloomberg exclusive. merck and makers anchor stephanie ruhle sat down with steve wynn for an extensive interview. they discuss how lost i guess is no longer just a gambling town. there has been> a steady increase of non-gaming attractions built and offered in las vegas, which were not there before. choicetoday can have the of more restaurants, more shopping, more of everything. the proportion of non-gaming revenue to gaming revenue has changed. because there have been more non-gaming offerings available to the public. is therevenue in america

same and has not grown in the last 5-8 years. it because of the proliferation of gaming around the united states in regional casinos. anywayas has prospered because the increase in international business -- all of the emerging nations, china, mexico havee and increased their visitation to las vegas. the growth in las vegas has come from non-gaming and in the gaming sector from international business. >> staying on the topic of gambling entertainment -- gambling entertainment -- gambling and entertainment. the kentucky derby will be held

in louisville this saturday. joining me on the phone from churchill downs is the president and ceo of the national throw bread racing association. welcome to bottom line. overalllk about the economic condition in this country. -- does that impact adding? impact betting? >> wagering is insulated from the impact of the economy. there was a downturn in the purchase of racehorses. it has dipped somewhat. we have seen about a 40% decline since the heyday in 2006. the old adage that gamblers are not affected by the recession has changed in the last four years. we have stabilized and are headed back. we are not quite where we were in 2006. >> how is online wagering affected the size of purses?

>> online wagering is the biggest growth area. of on come at the expense track. made a majoras not impact on purses because people have simply shifted their bedding from on track to online. we need to see a growth on track before we can see e a substantial growth on wagering. -- they have have teacher days and things like that in other sports. what you need to have the crowd comeback? >> their tracks doing creative things. downs, they have installed the largest outdoor video board in the world. ar around theeas tight country. racing has been slow to pick up on it. we have seen a lot of tracks

incorporate other forms of gaming. that has helped purses as well. asino phenomenon. how does wagering on the kentucky derby impacted the commonwealth of kentucky? are there tangible economic benefits to a one-day flood of cash? >> absolutely. the derby is big business. impact in a recent study was over $200 million every year just in the three weeks around the kentucky derby. it makes a major impact in this market. it is fair to say that louisville lives and dies with how successful the kentucky derby is every year. ceo of theident and national thoroughbred racing association. he's joining us on the phone

from churchill downs. disturbing story in today's new york times that involves allegations of animal cruelty by trainers. he is said to be under state and federal investigation. what do you and your organization need to do to assure the public that the horses are being taken care of and being treated humanely? >> i certainly can comment on the investigations that are ongoing. industry has had enough programs in place. we have an integrity alliance that we have built to create standards for the industry to make sure we're doing everything possible to keep these courses safe. and keep wagering fair. been trying to implement rules that would go a long way toward addressing some of the concerns that were expressed by peta.

concerns about overuse of medications. those are concerns that many of us share in this industry. we are making strides. we are changing -- it takes more time in our business because we have to go to 32 different legislatures. it takes a lot to do that. is stillrnia chrome the early favor tomorrow? -- favorite tomorrow? >> i like the favorite. he is the real deal. i hate to say that, but that means he probably won't win. >> why hasn't there been a triple crown winner since 1978? >> it's tough to win third the first and second race are two weeks apart.

it is a grueling five-week period for horses. you have more and more trainers picking their spots and running one or two, not the entire campaign. there are different strategies being employed. it is tough to win. you have been dropped before. efore.ps bid >> thanks for your time. enjoy the race tomorrow. ♪

you to know that bloomberg is the only business news service being offered on amazon fire tv. if you missed any of our interviews, you can now watch them on bloomberg on apple tv. that features live streaming and on-demand video. we bring you so

encore. a look back at the most notable newsmakers from this past week. sterling -- donald sterling is a dead man walking. focus was golden today in terms of having a clear path to extract donald sterling from the nba and move on with the inclusiveness that the nba represents. >> it's a step in the right direction. we'll have to wait for it to unfold. you will have to convince me that this is not an invasive attitude. let's let things unfold. if they conclude that he needs , wee limited -- eliminated can march forward in a more positive way. was set and he did not enforce it. he began with ukraine and was talking and did not follow

through. he would push this as far as he can. >> you have the best of all worlds from the financial markets. a dovish market for another year and fiscal restraint. have legshuge themes and could last a year. >> 95% of the world's consumers -- the agreement would include 1100 countries and 40% of global gdp. yes, there will be a balancing act. u.s. negotiators always try to get the best deal they possibly can. this is potentially a huge when for all sectors. , and check back at the notable newsmakers this week. another check on the market movers is on the other side of the break. we will be right back. ♪

headlines attest 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 or cope i'm mark crumpton. ask for joining us. have a great weekend. on the market is next. ♪ the hour.6 past

i'm julie hyman. let's take a look at where stocks are trading with an hour left. big jobs day of course. we are seeing stocks changed little here. we have the payroll number and the unemployment rate coming in better than estimated. on the downside, wages do seem to be stagnating as people are still watching the situation in ukraine. etf friday.r in a field of 1600 extremes -- exchange traded funds, 60 just have been spinoffs equals. we saw some lunches that were providing investors something not previously available. our etf guru is taking a look at these new, innovative approaches. new hard to find anything under the sun, particularly when it comes to the markets. i'm curious what these are. let's start with this new, all china etf. >> it's exciting because

typically, if you invest in china you had to pick a type of share. chinese companies in the u.s. or a shares. you can get broader market exposure in every other region of the country. called ita messy -- i a hot mess. it's one step closer to setting and forgetting it. 50% a shares and the rest is the cp chips. it gives a 10% exposure. that's lacking from the -- you get a lot of the hotter tech companies. alibaba is a great example. shot -- they charge 71 basis points which is pretty good

relative to other china etf's. the timing is awful because china is down this year and re has been 1.1 billion out of chinese etf's. a new fund like this, how quickly do you get a feel for how much demand there is for it? >> you need a year. >> let's look at the blue-chip etf. invests in actually developed market companies. it is called emerging markets like. you are investing in companies --e colgate, las vegas sands they get a large chunk of their assets from the emerging markets. even though em has been volatile, it's a good spot for this etf because you are looking at a gentler way to get some emerging markets exposure. it's opening the door for a whole new way for etf's to focus on economic exposure. where does it get its revenue? >> how should variable-rate

preferred etf's -- >> this one gives you a high yield with a low duration. everybody likes that, especially when rates are supposed rise. it this one has a three-year duration and the yield of five percent. that will probably be a big hit once rates rise. >> we will talk in one year. that is all we have time for. etf's. to us about we will have more on the markets at that later. street smart is next. ♪ . .

seth felt live from the nation's capital, i am trish regan -- >> live from the nation's capitol, i am trish regan with "street smart." jobs report. hello, everyone. welcome to "street smart." a special show for you here in washington, d.c. until the minutes closing bell. we are talking about herbalife coming under pressure from washington's microscope. the fbi is said to be investigating tradero