>> from bloomberg world headquarters, this is "bottom line" with a mainstream perspective eared vladimir putin said russia will express the ukraine presidential vote and work with the new leader. sales of new homes increased by the most in six months. created byeffects the world declining salmon population. to our viewers here in the united states and those joining us from around the world, welcome. we have full coverage of the stocks and stories making

headlines. alix steel with a special report on declining salmon. and the in kiev challenges of setting up polling ofces -- laces ahead sunday's presidential election. good evening. >> good evening. the latest is coming from the ministry of health in ukraine. the attack yesterday was here from the country. it has risen to 17. they have seen this in favor of kiev. five of them killed and seven will do. the country has involved the legitimacy of the election. the president of russian speaking in st. petersburg today and said he will not quibble be choice of the ledger when it comes to a new presidential winner. i spoke east of the country,

finding out about what it takes to raise the barriers. victoria has supervised voting specials from the small office in two previous national elections. this week and it will be different. i am not scared, she told us appeared my life is not in danger. no one threatens me here or at home. i'm doing my job. harderjob got a little recently when armed men came to confiscate national voter lists. ukraine's interim government has probably rented tens of millions of ballot papers ahead of the election. international observers. berseeing a fair vote may

for those traveling to the east of the country. a few days ago this was manned entirely by the ukrainian army. today it was stopped by a local militia. it was part of the political landscape in the city. outside,ing 35 miles we eventually found members of the ukrainian army to their mr. s selman. .1 were killed this means the power of the separatist done and will trump that of the ballot box. elections always give us hope about something new. a new government, new president, that is the point of the election. >> in the new pupils of republic, many of those of voting sunday may not feel that same hope. rather fear. >> now back live.

how are preparations going for sunday's vote? >> i would say not too well. haveatest information i out of this morning was the five district election commission offices operating in the city of donetsk. one is hopping ahead of the others. what has been kidnapped and pressed the -- on squarely release. theremaining two are out of region today. it is showing some of these election officers in flames. known that several movements have been put by the separatists. it does not seem to be a very conducive situations for those wanting to run the election or those trying to vote in it. >> marks joining us live from kiev. winky. more on ukraine. chai cagle says russia still needs to do what it said it would do regarding his presence in ukraine.

here's what he told charlie rose. >> the russians and the president of russia said he's going to withdraw his troops along the border. have you seen any evidence of that? ofwe have seen evidence preparation. someve seen just recently minor evidence. nothing i would define as compliant with what he said he was going to do. that stage. >> when should it be? >> he said he was doing it now. at leastng you've got 40,000 russian troops on that border. you do have to be fair to get them out and so on. regardless of what is happening to, and he said he was going do that and they're going to move out, even what we're seeing

now with the small contingent of preparation, they still have tens of thousands of truth air -- troops there. until all the troops are moved away from the border and back where they came from, they are not complying with what president putin said they were doing. economicthan sanctions, what options does the united states have. is one.mic sanctions we continue to use those. working with our nato partners. strengthening our relationships of nato countries. we have made rather significant investments of force posturing in the baltics, poland, 16, 15, it airborne for grade -- airborne brigade so one. others are moving more assets around in the black sea. >> you can watch mo charlie

rose's and view with a check here onnight at 8:00 bloomberg television. also tonight, iraq and afghanistan veteran paul whiterock will discuss embattled secretary affairs secretary and the controversy at the v.a.. >> the got to almost a million before they did this. theo pat themselves on back. has this become a positive talking point? seeking catch the full interview with iraq and afghanistan veterans for american ceo paul on political capital tonight here on bloomberg television. the export/import bank of the united states is scheduled for

reauthorization this fall. why the head of the action form is calling for the thing to be reauthorized but which changes. "bottom line" will continue in just a moment. ♪

>> donald sterling will surrender control of the team to his estranged wife shelley. they banned him from life and find him 2.5 million dollars because of racist comments. team owners are moving forward with a vote on whether to terminate his ownership. he has until may 20 72 response. is theort/import bank official credit agency of the united states. the current authorization is set to expire on september 30. a report calls are the banks to be reauthorized but was certainly forms.

president of the american action form and rector of the cbo. he joins me now from washington with more. welcome. it is good to see you again. >> straight off the bat, it does the export/import ain't meet the doctors were which it was founded? >> perhaps increasingly so. reality is you would like to live in a world and i would like to live in a world that does not have this for the bank. that is not the reality. many other countries, notably all have the brakes, an export credit agency. they are out there trying to gain market shares. the west simply has to not disarm. >> your paper says the tank should be reformed to minimize distortionary influences and enhance its function as a countervailing force.

are those influences. how do they impacted the ability to help american companies compete overseas. >> i am a trained economist. my reflexes are that -- one that let these dry. you have fewer restrictions put on the bank to make sure that credit goes to particular particularly sizes of companies or even industries. this is not a facility we want to pick winners or losers. we want to help sell american products in growing markets. take those restrictions off. you want to make sure it is no bigger than it need be. it is a neat -- purpose. if you can limit this and not harm our ability, we should do so. counterbalanceod to the private sector's inability or his unwillingness to assume credit and country risk? big do not think there is a

portion of that normally. initially it initially froze in 2008. we saw them take on the risks at a very slow pace. there has been an uptick in these agencies around the globe. that is going away now. i expect them to be able to hire most of -- change most of these risk. we are talking about the export/import bank. up with? did you come what is the total level of exposure? where is it most concentrated? billion.but $130 it is important to recognize the way the bank works, they have the appropriation to cover the credit risk. out he gets repaid you find

if it was necessary. for the past several years it has not been necessary. this may not always be the case. there is a chance it would go bad. by and large, it exposure has been quite small. they cap it at about 140 billion. it might be too high. main criticism is that it favors large politically connected corporations. on the bank's annual report for fiscal year 2013, only $5.2 27 .3 billion in total authorization was designated as "small business activity. are these scales tilted in favor of the big guys? >> if you look at international trade, 70% of u.s. exporters are small businesses.

the vast majority of value is the globally competitive companies whose names you know. the fact that they report that is not shocking to me at all. needis who is going to financing for them. i do not think it is any deeper than that. >> the export/import bank will be up for reoperation from congress after the charter expires september 30. is the political will bear to reauthorize? i understand that argument. many people would like to live in a world where we did not need a government facility. thes going to try to make case that on first principles it should go away. endderstand that in the most numbers will think we are not in that world. we do you -- do need such a facility. thank you for your time.

enjoy your weekend. up, financing the housing market. ♪

>> u.s. new-home sales got a boost and home purchases rose 6.4% in part to declining .orrowing costs and he represents the nation's $13 trillion banking industry. he joins me from washington. walk him. good to see you. >> thanks. nice to see you as well. numbers did show strength. americans are still buying homes at a slower place. not an appropriate to

make sure if you loan money to somebody they will pay you back. they have a job. these are important things. this is good news. there is a tailwind or two. for under 35eed lived with their parents. those are rental people and probably not single-family buyers. this is a trillion dollars. a very difficult process to get this. >> sales of new homes continue to run a half the rate of a healthy real estate market. even with the unemployment rate falling and the fed leaving interest rates unchanged, what is going to take to get demand for new homes back?

>> it is going to take a much more robust hiring market. they may have a job that lasts longer. temporary workers generally do not want to go into the market and buy it. system also this new that requires 43% debt to income ratio between debt and income. that keeps a lot if they want to move to florida. they have not much in the way of income. also a place like puerto rico is a tough number to reach. to be more flexible and creative, to go back to this. i believe you also. this is not exist anymore. it is regrettable. foro increase in demand

homes was led by a 47 .4% surge in the midwest. that is your region. you're the former governor of oklahoma. why are they showing the most gains? i think much of that gain is local economies that are robust. you mentioned oklahoma. the energy economy is very healthy. there is a lot of hiring that has gone on. a lot of long-term jobs. it is a lot more affordable. overreferred to fly country. you have more activity. optimism and ones that do this. >> she is optimistic about the overall economy. she's at a big concern is still housing. what do they do with the monthly

bond purchases? >> it has an impact. obviously. this is what has prepared the best policy. housing is still ritual. processed who chop wood. the people who make appliances, carpenters, nutritionist, they thea cross-section of economy. this means a healthy economy across the board. a lot of hiring. if people cannot buy because of this they have too much to the debt, these are not good things. more activity, hopefully that will be a bright place. >> we have about a minute left.

the senate banking committee said they would abolish -- freni may -- freddie mac and fannie mae. if the government still has a role in the mortgage market, what is the point? >> the housing commissioner of which i was a member and the two bills you are talking about. they look at it in a sense of let's phase them out. if they bought cement, the tail and will have a residual role. people have a dirty years mortgage. everybody wants a 30 year mortgage. there has to be some government role in that. they received a good bipartisan vote in the committee. probably not enough bipartisan support to get us to the floor. i think talking is a good thing.

debate is a good ring. we cannot prevent them from treading water as they are now. there's simply no way we can keep them alive. we need to resolve this uncertainty. >> it is a pleasure to have you on the broadcast. bloomberg is on the markets. matt miller has the details. >> we're are seeing gains here in the u.s. they're propelling the s&p almost to record levels. hewlett-packard has 11 straight ones. more than 16,000 more jobs on top of the 40,000. facing lower demand for the products. also the first eye.

the shares are gaining today after barclays upgraded the stock to the price target to $40 a share. 65% pullback from this year's high.

>> welcome back to the second half hour of "bottom line." i am mark crumpton. thank you for staying with us. we have been talking about the issue of peak salmon. is the world running out of wild fish? businessd create your for farmed salmon. how can investors rob on the brace to grow the fish? alex neil is here with me for a look on how you can real in this. >> we're not talking about an oil contract. it is a lot more complicated.

every year the government guesses how many fish there are in the ocean and how much each fishermen can catch. this can be traded, sold, rented, bought. here's how an investor can profit off that. her's a yield investment. you get your money to a middleman who use it to buy kois from one fishermen. you profit off the difference. another way is a pure profit play. you can wait until the quota prices rise and then sell it. rice's rise when the government underestimates how much fish there are in the ocean, creating more demand. the third way is an equity stake. you hold that longer term, but on the government, underestimating the quota, forcing to raise next year. that allows them to produce even which you a slice of now own. some investors but the return on

high single-digit to mid teens. the problem is a very small, illiquid market. it cannot apply to salmon because wild salmon are pretty much the stink. aret almost sounds like you bundling them together. >> that is exactly what it is like. >> welcome. thank you for your time today. what is appealing about this equity investment? >> they have to take a step back them up at their overall allocation to food and agriculture. industrial output is around 9% estimated. investors are typically under allocated or underweight overall. foremost they need to determine how they're going to access and get exposure. they do this for a variety of methods of looking at what weight they have in different --t yours as well as whether

sectors or whether there allocated across asset classes. this will be a private equity class. that is a long-term tie up for investors. be sure of the transparency and certainty of be regulation that they will exposing them to any natural resource environment. >> are those the risks? >> yes. equity market tries to infuse capital into local communities. theof the big challenges is communities have been depleted of fish and therefore their communities have been suffering. to do ise trying inject capital into these markets. >> i did speak to an advisor firm. they were actually interested in that equity type investment for fish and that equity project. they have been working on it for one or two years hoping they will be able to invest in a year and a half.

the issue is it is really hard. lack of transparency due to the regulation. you do not know what is really going on. it just takes a lot of steps to do that. >> investing in farmed salmon. -- salmon is a large industrial projects globally. chile, norway, the majority of farms overall is from china. is a very mature investment opportunity. there are many investments out there that one can get exposure to. what has been challenging for is really sustainability. the lack of management around disease control. the farmed salmon to the natural salmon as well as other changes in ocean temperature.

we are looking at how will these companies understand and navigate these challenges. >> we get a sense that private equity is trying to capitalize. bought uptually seafood that a processor in washington, they brought that back in 2007. they have pumped a lot of money into it. looking at the recirculation facilities. maintaining speed delivery. they were dicey about going into this farmed salmon space altogether because of the risks. what they are looking at now is ancillary businesses. perhaps the business that will provide this marine group. they collect bioproducts. >> it is not a stretch to say

maybe private equity you can own one themselves. >> not one in particular because of all the risks involved. a largers part of investment. it'll be a trickle-down investment. this seems to be where the money will go. >> why salmon? >> there are many species of fish globally that are produced. it is an ancient practice. recently a commercial enterprise. salmon is one of the top three produce in the world. has compounded annual growth rate. what does this tell you? our salmon conditions predicated on the supply and demand is salmon coming out of farms but on the while cost is salmon. that happens because of a variety of reasons, one of which is the fisherman special.

developedy we have quota systems in order to do the manage of this and supplanting it. >> we're going to be paying a lot for our salmon. >> with at that charger. you are so looking at seven or eight dollars off that kilogram. >> thank you so much. we appreciate appeared coming up, president obama has said it is time to get america a raise. business owners say it will hurt more than help the economy. the debate over the minimum wage raise will be next after we come back. ♪

>> the debate over minimum wage is heating up.

betty liu hosted a roundtable on the issue. her guest was the cinnabon president. vice president of the economic policy institute. going to be always people who take advantage of the system. that is why i do believe in a minimum wage and in some cases, it absolutely should fill up. no one should be under the solution -- the solution that it does not affect the job. it affects the business owners, unit level economics. they will either raise prices to such a degree that they price themselves out of the market and it causes compression and other areas or they will trim and cut hours. >> she is leaning on the government. they are leaning on the special taxo pay payments, food stamps for workers. they are relying on subsidies

from the government now. their workers cannot live on $7.25 an hour. all the public supports that taxpayers pay for incident the business that should be paying for them. >> biddy joins me now in studio. what was the take away from the debate? of the fasthe fate food worker has changed since the 1970's. our first be that jobs might be going to mcdonald's or burger king. the bulk of fast food workers. that has slowly change. older workers are now the bulk of the fast food staff. you're seeing such a debate. is the only valid argument is job loss. if it does create job loss there

is a valid argument not to hike the wage. >> talk to us about the minimum wage in margin. would this really hurt them? said absolutely. our franchisees would get hurt. our margins are already pretty thin. you have estimates, none officially backed by the company. hise is one student who did own numbers and set a big mac with cost you $.68 more if they hike the wage to $15 an hour. >> they will pass it on to the consumer. quite euro-dollar menu would be one dollar 17. dollar menu would be $1.17. any hike in labor is going to cost something. >> that is the economic component. is there a moral component? money i'm getting now from working at a fast food restaurant, it is not a living

wage. it is not enough for me to support myself or support your family. after the financial crisis, a lot of people to jobs they could get. go toof older folks you your mcdonald's or burger king and you seeing older folks working in that store in that franchise. >> that is what ross was saying. they were saying this is just another symptom of how the income inequality gap has widened so much. this is gotten completely out of hand. the mcdonald's ceo was paid 90 yen? >> from the very lowest to his pay, it is growing and growing. is why you're seeing a lot of cities and states. i know you talked with the seattle mayor he was for that. it is still such a partisan issue.

most republicans do not back a minimum wage increase. >> is the federal government going to get involved? is there any talk of saying we really need to do this? maybe it would not hurt. doyou heard the president that. his own executive action. there's not much more they can do on the government side. certainly that will be a big issue in 2016. >> you can see this interview on our website at bloomberg.com. thank you so much. but he will be sitting down with trish regan for more on the debate on raising the minimum wage. that is coming on at the top of the hour. also coming up, some brazilians may be wishing that their team loses and the upcoming world cup. we will explain why next.

>> it is time for today's latin america report. this kicks off two weeks in brazil. while everyone wants their country's team to win, investors in brazil are quite conflicted. sasha is here with the details. they are hoping that the whole team will lose. why? >> they are conflict it. there is such an identification of national pride. anything that is bad for the president is good for the market. wins, that could be significant distraction, bumper in the polls. if they lose in the semi finals, brazilians are going to be left with nothing to watch on tv. he will not refer argentina. they will be sitting there and say we're 7 million people who are living on a dollar 25. dust window between device and a day in the country has been $11 billion on this. we are living on $1.25 a day

in a country that has spent $11 billion on this year at a >> where's all this money coming event? put on the >> she is down. she is about 40%. there is that it will not be a slamdunk for her in the election. she will probably need to go to a second round. >> she ran as the people's president and said there is a lot of issues that we have to take care of and i am the person that can take care of this. but then the tournament came. seehat is interesting is to the effect on the market. state companies like esther rabras are down a tremendous amount from whence you came into power in 2010. of indicated that

she is losing popularity, they have gone up and up and up. 24%he stop market is down since you took office in january 2011. many brazilians have been taken to the streets to protest the amount of money that is being spent on the world cup. at the expense of the quality of life here it it is not just about the $1.25 you talked about. what are some of the other issues? >> transportation, click services. inflation is stubbornly high. they are demanding higher ages. >> as anybody who follows why is this a religion in brazil? brazil lost to uruguay in 1950. they were the heavy freight.

. -- favor. they were upset. why is a passion? is anybody can play. you can play soccer with a coconut if you need to. if you win, the rich and poor are excited. it goes across economic lines. >> cc people on opposing sides. they will sit down and have a double espresso. talking about the all. to brazil ining the world cup. thank you so much. stay with us. another check of the market movers on the other side of the break.

>> get the latest headlines at the top of the hour on bloomberg radio and on your tablet. that does it for this edition of "bottom line" on bloomberg television. i am mark crumpton reporting from new york. thank you for watching us. have a great holiday weekend. next.e markets" is

>> bloomberg television is on the markets. i am matt miller. we want to get you caught up on where stocks are trading. we are seeing near record levels. the s&p 500 fishing ever so closely. justlevel will pose their 1/10 of a point away. the dow jones up one third a percent. the nasdaq is the biggest gainer of the three. tradingse stocks are near record highs, investors are still worried about volatility in the markets. located us replicate popular strategy. these funds have doubled in size of 21.2 billion dollars in the last 12 months alone. they take a look at some of the standouts. let's talk about volatility.

remember thish to going to 80 back in the financial crisis. we covered a heck of a lot since those days. >> we have. going down. it means people are a little concerned. we have a longer and in the equity market. you have concerned there and concern of rising great makes treasury a little shaky as the diversifier. this is rising in popularity. these are non-correlated. an example is one that is growing here. a multi-strategy fund. fund.ics a multi-strategy a little equity longshore. it does a using return streams and fact yours. theset does is it makes indices. it gives you a correlation about .3. it is less than vietnam in terms of correlation for the u.s..

this seeks out a little bit of the performance. that is generally what they're using it or. >> this is one of the coolest things you can do. cannot getned you into the hedge fund. you do not have enough money. this is a great way for retail mama popped it in stride. i absolutely. >> they are expensive. >> they are. they are for wealthy people. they turn out capital gains taxes all the time. another example of one that is interesting is the shares market neutral value. it is 20% of the cheapest. does market neutral in this one is at 5%. advisors are utilizing them. it is true. these are now being rocked to

the masses through these vehicles. >> you do not have to necessarily do this yourself in this can give you a taste of it. and it can protect you from turns in the market. a lot of the things that try to kill volatility are riskier themselves. low-volume that is and people are flocking to. >> thank you so much. much for very watching. "street smart is up next. ♪

x better than expected new home sales pushing stock into the green for a third straight day. the s&p set to close at a new record high. i am trish regan. this is "street smart." i welcome everyone to the most important hour of the session. we have 59 minutes to go until the closing bell. there are reports that donald sterling may have agreed to transfer ownership of the nba team to his wife.