too many of these for-profit colleges, some of them do a fine job. but many of them recruit kids in, but the kids don't graduate and are left with the debt. and if they do graduate, too often, they don't have the marketable skills they need to get the job that allows them to service the debt. none of these fights have been easy. all of them have been worth it. you have some outstanding members of congress right here and have been fighting alongside the good news is, more young people are earning college degrees than ever before. something we should be proud of and something we should celebrate. more of them are graduating with that, despite everything we are doing. we are still seeing two big debt load onto many young people. a large majority of seniors have taken out loans to pay for school. the average borrower at a four-year college oh those

$30,000. americans old more on student loans than they do on credit cards. the average here is that they have just been doing what they are supposed to do. i cannot tell you how many letters i got people say that they have done what they were supposed to and they want to pay off their debt and they are working hard, but they can't make ends meet. somebody plays by the rules, they should not be punished for it. ashley, inan named santa fe, wrote me a letter and wanted me to know that she is young, ambitious, proud of the degree that she earned, and she said -- i am the future. so put am in capital letters that i would know she means business. [laughter] she told me that because of her student loan debt, she is worried she will never be able to buy a car or a house. she wrote -- i am not even 30 and i have given up on my future because i cannot afford to have

one. i wrote her back and told her it was a little early in your 20's to give up. i am sure that ashley was trying to make a point. but it is a point that all of us need to pay attention to. in america no young person who works hard and plays by the rules should feel that way. made it clear that i want to work with congress on this issue. unfortunately a generation of young people cannot wait for congress to get going. the members of congress here are working very hard and putting forward legislation to try to make this stuff happen, but they have not gotten some of the support that they need. this year of action, wherever i have seen ways i could act on my own to expand opportunities to more americans, i have. today i will take reactions to help young people pay off student loan debt. number one, i

am directing arnie duncan to give more americans already making their loan payment a chance to cap those payments at 10% of their income. we call it pay as you earn. we know it works because we have already offered it to millions of young people. it is saving some folks hundreds of dollars potentially every month, giving graduates the opportunity to pursue the dreams that inspired them to go to school in the ursa place. an investment for everyone. we want more young people to become teachers, nurses, social workers, start their own businesses, to be in a position to pursue their dreams. we want more young people who act responsibly to be able to manage their overtime. we are announcing steps that 25l open up pay as you earn million more americans. that is the first action we are taking today. the second is to renegotiate contracts with private companies like sallie mae who service student loans. we will make it clear that these

companies are in the business of helping students, not just collecting payments, and they yellow -- they owe young people the financial flexibility and customer service that they deserve. number three, we are doing more to help every borrower know all the options out there so that they can pick the one that is right for them. we will work with teachers associations, nurses associations, business groups, ymca, nonprofits, companies like turbotax, h&r block. tomorrow i will be doing a student q&a on tumbler to spend -- to spread the word. you are laughing because you think -- what does he know about tumbler [laughter] but you forget i have two teenage daughters, so i am hip to all these things. [laughter] plus i have all these twentysomethings working for me all the time. [laughter] to give student borrowers more chances to save money will require action from congress.

i will sign an executive order order, but it is not enough. we need more. we need congress to make some progress. the good news, as i said, some folks in congress want to do it. folks here like jim clyburn, john tierney, who are helping to lead this fight in the house. elizabeth warren is leading this fight in the senate. elizabeth has written a bill that would let students refinance their loans at today's lower interest rates, just like parents can refinance a mortgage. it pays for itself by closing loopholes that allow millionaires to pay lower tax rates. i don't know, by the way, why folks aren't more outraged about this. i am going to take a pause out of my prepared text. somebody think that if , like me, has done really well in part because the country is invested in them, that they

would not mind at least paying the same rate as a teacher or nurse. good economic argument for it, that they should pay a lower rate. it is just class. that's all. it is bad enough that that is already happening. it would be scandalous if we allow it, those kinds of tax loopholes for the very, very fortunate, to survive while students are having trouble just getting started in their lives. you have got a pretty straightforward till here. this week congress will vote on the bill. i want americans to pay attention, to see where their lawmakers priorities lie. lower tax bills for millionaires or lower student loan bills for the middle class? this should be a no-brainer. group of fara right republicans in congress

who pushed this track of -- trickle-down economic plan, telling hard-working students and families you are on your own. two years ago they let the student loan rates double. last year they tried to strip protections from lower income students. this year they voted overwhelmingly to/pell grants and make it harder for families to afford college. if it -- if you are a big oil company, they will go to bat for you. if you are a student? good luck. some of the republicans in congress seem to believe that it is just because -- that just because some of the young people , that me need some help they are not trying hard enough. they don't get it. they need to talk to andy. these students work hard to get where they are today.

chanel roberson, where is she? she is the first in her family to graduate from college. [applause] she is not asking for a handout. none of these folks are. they are working hard, doing exactly what we tell them they should do. they want a chance. if they do exactly what they are told they should do, they are not suddenly loaded up with so much debt that they cannot buy a house, cannot think about starting a family, cannot imagine starting a business on their own. plenty of people from both parties have paid lip service to the next generation, and then they abandon them when it

counts. we, the voters, let it happen. this should be straightforward, just like the minimum wage. just like equal pay for equal work should be straightforward. one of the things i want the voters out there to consider, particularly parents who are struggling trying to figure out how they are going to pay their kids college education, take a look and see who it is that is fighting for you and your kids and who is it that is not. if there are no consequences, then this kind of responsible behavior continues on the members of congress -- on the part of the members of congress. i want young people to go to college, graduate, and pay off their debt. we have made good progress. despite the efforts of some in

congress to block the progress. chance, ifhey had a they do not look out for you and then throw up a whole bunch of arguments that are meant to obvious kate, meaning confuse, rather than to clarify and illuminate -- >> [laughter] then you should call them to account. in the meantime i will take these actions today on the .ehalf of the young people here thank you, everybody. god bless you, god bless america.

>> the president of the united states signing an executive order on student loans, the president saying in his prepared remarks that a higher education is the best investment you can make. he continued that this is a country where opportunity should be available to anybody in america. higher education opens the doors of opportunity to all. joining me now from more on the student that proposal, phil mattingly. he turned >> -- >> he turned this into a political attack on republicans on capitol hill. what he can do himself is limited, he is acknowledging that, he needs help to move the

broader agenda forward and he does not have it. there is one primary thing we have focused on, he is expanding what they put in place. they will have to expand that, it will reach about 5 million .ew borrowers no word on how they can pay for that, but that is a step forward that they can take on their own. >> $1.2 trillion, is this going to make a dent? there was discretionary income for borrowers to put cash in the

pocket. as we have heard, there was a lot of evidence to show that there was a growing divergence between student loan debt and those that have it. you can buy a house, save money, and what he is trying to do is stimulate money in the economy, as they have money to spend. wille education department be assisting in the effort. they will be assisting in the contracts would loan servicers. are they willing to stick with borrowers in the effort to keep them from defaulting? >> i think that they are. what will be interesting to watch is where the details end up. from an incentive basis there is a chance that this works out well for everyone. how the white house approaches this will be interesting. a few analysts this morning said they felt that if they lined up the incentives better, this might be a net positive on the business side of things, but it really does depend on how the

department of education comes down here as they go through this process. put outnheim securities a note saying that the president's student loan reduction plan will likely be a negative for housing because borrowers will find it harder to get mortgages because of the debt to income ratios, they will remain elevated for a longer. of time. thismortgage lenders see as a negative? >> a good question. this means you are stretching out the life of the loan, so your debt to income ratio may not change much because you may just be paying interest. however, you do have more money in your pocket. perhaps you have more for a down payment. so, we will see. >> senator elizabeth warren, sponsoring legislation that would let students refinance loans to take advantage of lower rates, but there is a catch, the president wants to make up for the loss of federal revenue by

imposing new taxes on the wealthy. mitch mcconnell says the bill does not deal with college costs and does not address what he in thehe lack of jobs obama economy. is this bill dead on arrival in the u.s. senate? >> without question. onk, there will be a debate this. democrats will be happy to take us to the floor and have this debate, but as you heard from a frustrated president, there is no path forward in a democratically controlled senate, let alone the house, where republicans stand is -- look, there is nothing here they find acceptable. raising taxes on high income individuals is something they will never go along with, as you have heard the president alluded to. what they believe right now is that the administration could put better jobs in place for younger individuals coming out of college, that that would make this issue if not go away, easier to deal with. nosimple solution there,

proposals on the table from republicans. in terms of senator warns bill? dead on arrival, no question. >> our white house correspondent, phil mattingly, janet horn, both joining me this afternoon. coming up, global wealth surpassed expectations last year. we will take a look at a report released from the boston consulting group and get the highlights from one of its authors. stay with us. ♪

>> the ncaa has announced a settlement with players over college themed basketball info all themed the of games produced by electronic arts, dividing money to plaintiff's. the case was scheduled for trial

in march of 2015. the agreement was announced on the same day that the ncaa heads to trial in california. ucla star at o'bannon and others filed a lawsuit claiming imagesey used their without compensation. a boston consulting group just released its global wealth management report for 2014, finding the growth of private wealth surpassed expectations in 2013. is a zürich-based principal and co-author of the report, joining me here in the studio. thank you for being here. this is the 14th annual study of the global wealth management industry, coming on the heels of 2013, by most measures solid for the industry. what were some of your key findings? >> i guess some of them are that global wealth grew by roughly

15% up to $152 show you, one of the strongest we have experienced. at the same time, asia has one of the biggest drivers of growth , which has been white a big shift between new wealth creation as well as the strong growth of equity not -- equity markets on existing wealth. >> equity markets and the creation of new wealth in what is described as rapidly developing economies. how did that help to drive the globalwe are seeing in private financial wealth? >> asia, for example, was the main engine behind that. if you look forward, we expect china, for example, one of the main economies in there, to become number two in the region to the, closing the gap u.s.. >> what is the u.s.? the largest u.s. is wealth market, with over $50 trillion, 30% of total global

wealth. as i mentioned before, china in five years time will be the second largest economy, just after the usa, slightly closing the gap. >> what other regions are showing the most potential for growth going forward? >> i would say latin america, asia, and eastern europe. they have a potential growth rate of over 10% over the next five years. >> what does that tell us about how these regions have responded to the global economic downturn? a couple of years removed from the recession, our people now investing there? >> i would say that they are back on their heels, but at the same time they have strong gdp growth in the regions where the new wealth is being created. >> offshore wealth is impacted by political and financial stability, rising and falling due to a lot of unforeseen geopolitical circumstances. private wealth, where is it

being booked? how is it being affected by be patriot nation efforts and by the efforts of some countries to try to get taxes from people they say are innovating paying them? >> offshore is the new challenge, yes? not dead. i would say a lot of the banks are undergoing transformation. we do see repatriation in the old world, like in europe and north america. but there is also continued inflow. we have big inflow that we see from italy, with its highest share of offshore wealth in asia and eastern europe. >> and according to our graphics, switzerland is still number one for offshore. >> correct, switzerland is the largest, but if you take singapore and hong kong together it may overtake switzerland in the next five years. >> speaking with anna,

zürich-based global wealth reporter for 2014. your report look so what is called the digital dilemma. what is it? does technology give some an unfair advantage? >> on one side it is a dilemma, on the other it is about the industry. what we are talking about in digital is not the next online bank on the market, but it is enhancingew way of the experience between the relationship manager and clients . it really is an integrated, multichannel experience. >> how has it changed the playing field? >> in such a way that it will enable relationship managers to provide on hand advice to the clients, allowing for networks around the valley to improve their experiences. >> we are now and -- no doubt going to see challenges going forward for wealth managers. what are the challenges? how can they gain market share

over the next few years? >> they have had a lot of challenges, but we can still call it a profitable business model. so, banks today on average make compared toargin other industry sectors. it is a good business to be in. the challenges they are facing are from my early around the topic of complexity. do credo at the moment is to a few things and do them well and at the same time start investing into basically career value propositions. complexity basically means that a lot of the play up is in outside markets offering those aboutts what is really having a very clear approach, the segments and the markets, moving from profitability to pure growth.

>> one of the authors of the global wealth management report for 2014, anna, pleasure to meet you. >> nice to meet you. thank you. >> 26 minutes past the hour, john is standing by with bloomberg on the markets. >> good afternoon. getting you caught up with where markets are trading right now, the s&p 500 is not great. down just a touch. usually it goes up a touch when we hit the record highs, but now we are at session lows. three weeks of gains, lots of people talking about a dow of 17,000, looks like those people will have to wait another day. the next big release comes on thursday. want to get a little bit excited? this stock,about surging over 200%, the chart goes vertical for about $24. that is more than triple the closing price of that company on

june 6, giving them a price tag of $3.85 billion. elsewhere? stoxx doing nothing, back on the market in 30 minutes. ♪

>> welcome back to the second half-hour of "bottom line." the mayor of san francisco says that -- calls the lack of affordable housing in his city a genuine crisis, but lower income residents a short drive south are also feeling squeeze, so their city is sticking up for them. it we spent some time in east palo alto for this report. >> famously a home to technology giants and billionaires, but it is also home to this child care

worker at stamford. together with her husband and kids, she had been living there happily for six years until an unexpected eviction order arrived. >> for homelessness to be a reality? for your family? i have no choice. >> her fight was against equity residential, america's largest publicly traded landlord. paid $11311 they million for her apartment complex. tried and failed to victor for late rent payments, then settled after she could show that required home repairs had not been completed. echoing -- equity one residential would not make anyone available. >> why do you think that the landlord wants to evict people like yourself? >> because they can make more money, have more people move in at market value rates.

>> she currently pays around $600 less than market value next to rent stabilization laws that have left east palo alto as the last low income refuge between san francisco and san jose. >> this bridge marks the dividing line. to the technology boom, housing may not remain affordable for much longer. havee upscale blooms jumped over the past five years to around $800,000 to $1.9 million, meaning that young technology workers are pushed out to places like east palo alto and rents are pushed up. >> california law allows the landlord and a rent-stabilized jurisdiction to raise the rent to market rate for a new tenant. that is the perverse incentive that exists. was illegaly it incentives to evict.

soon after they are just worth -- woodland park tom a eviction notices sword, from 14 in a single month to 300 and 11. in one instance they tried to evict a tenant who was just $.75 short. >> what is unusual is the aggressive and rapid nature of it. tot landlords are not going take steps to evict a tenant on the second day of the month. >> many tenants here are unaware of their rights under california and city laws. in this largely hispanic community, some residents face retaliation based on immigration status. >> the overall effect is messed -- mass displacement. the community, changing overnight. >> the last affordable community in the region. >> yes. >> this councilwoman has belonged to the community for 30 years. he says that rent stabilization

was the court once upon which east palo alto was founded. >> it is part of our history, part of who we are. we basically made a commitment. our city government will look after the most vulnerable in this community when it comes to housing. council had recently passed a new housing ordinance designed to prevent landlords, like the or -- owners of woodland park, from threatening behavior, delaying repairs, or harassing tenants in this small community that feels under siege. >> he joins me now here in the studio. this story, is it something specific to silicon valley? or is this elsewhere? >> in california there was a report recently that the city of los angeles requires half of a million more affordable homes. the state requires one million more.

this is something happening across the country. millions of americans lost their from homeowners to renters, so the demand for rental property surged, prices have surged, and communities like this are being really squeezed. >> thank you so much. road ahead, we are on the to rio. teams have arrived, fans are on their way, the world is ready for brazil, but is brazil itself ready? details today in the latin america report, next. ♪

>> it is time for today's latin america report. seven years and $12 billion to plan the biggest sporting event in the world, but with the opening kickoff of the world cup just days away, brazil is still not ready. mind?estion on everyone's why.

erik schatzker got a firsthand look at the countries lack of preparedness. >> let's say you are going to result for the world cup. here is what you will see as soon as you step off the plane. expect some traffic on your way to the game. and when you finally get there, a hardhat might come in handy. the $365 million stadium in são paulo. it has been a scramble to get it finished in time for the opening kickoff on june 12. with just weeks to go, entire sections still had no seats and much of the roof was not installed. outside, this was supposed to be a huge parking lot, designed to hold dozens of buses. the inaugural match in may was paved -- barely able to accommodate a half sized trout. now imagine what will happen

when they try to pack in twice as many people. it could be a security nightmare. challenges of stadiums -- the parking around the stadiums, the uncertainty of where it is we will be able to uphillot go, it is an battle for all of us who have a responsibility of protecting these folks. is the biggestp sporting event on the planet. so, why is brazil not ready? >> everybody knows that there has been no planning in this country. the country is now in a very difficult situation. >> brazil spent 3.6 ilion dollars to build or room -- to build or remodel stadiums, only three were delivered on time. big earmark $14 billion to improve the infrastructure of the country, only to encounter more delays. the new terminal at the

overcrowded airport will not be completed until after the world cup is over. this airport renovation is months behind schedule. even rio, the brazil tourism mecca, did little to fix the epicems that led to traffic jams. way up north, the amazon, there is a city closer to being ready, a jungle boomtown called manaus. >> here we are, three weeks away, how much work is left? theanaus will host one of biggest matches of the world cup, england versus italy, on june 14. >> everyone on -- everyone in brazil knows this. it is important for everywhere in brazil.

we are a poor city. we need to prove that we are able to receive hundreds of thousands of people. we are preparing to manage great events. we do trust in our future to certain tourism. is really atat stake. not whether they will come for the world cup, but whether they will come back. >> erik schatzker, resplendent in his jacket, joining us here. at the beginning i mentioned seven years, 12 ilion dollars, why has this happened? >> in a word, you could say corruption. it is no secret that result is a corrupt country. as we traveled around investigating the state of preparedness for the world cup, i kept hearing stories about how -- you know, governments were involved, state and federal governments, but then you probe deeper and ask people -- what is wrong with having the government

involved? all you need to do is contract out construction and surely that is all it takes. well, apparently not. like i say, dig a little bit deeper and the answer that you ultimately get is that someone might have gotten paid off to do this, that, or the other thing. very, very hard to document. like i say, having been there for nine days, that is the answer i am left with. >> all right, erik schatzker, we appreciate it. stay with bloomberg this week, we will have full coverage of the world cup and we will get reports throughout the week as the world makes its way down the road to rio. that is your latin america report for this monday. coming up, from a conversation on melting glaciers to a discussion on why food for the average american family is getting more expensive. how is the white house selling the climate change debate? "bottom-line" on bloomberg television continues in just a minute. ♪

>> welcome back. environmental protection agency ,ission notices from last week we have a look at what the proposal means for states and the white house strategy for selling this to the public. joining me now, the head of policy from bloomberg new energy any peace. shannon ethan, you went through the entire document. is there a consensus in the market about what this regulation is going to be? >> not yet. the president has certainly outlined a clear number, cutting emissions by 2030, but if you dig the intuit -- and we have spent the better part of a week reading this, you will find that what it is is a number of state-based mandates that add up, but may or may not add up to 30% by 2030. essentially the epa gives states a lot of different ways to

comply with overall regulations and it may not come to 30% total. >> we will get to that in the moment. the white house is framing this in terms of public health and economics. does that strategy work? >> they are hoping it will. they are trying to get this away from rising sea levels and into things that people can tangibly see right now, trying to bring this around the kitchen table and make it about health. one of the areas they have been focusing on his childhood asthma . a lot of people don't think about more co2 emissions and a warming climate as causing asthma, but there is data from research out there showing that warmer seasons are causing longer growing seasons for plants with more pollen in the air and for people with asthma half the cases are triggered by allergies, meaning a rise in asthma attacks. they are trying to make it much more now, much more relatable to

people. >> you just talk to me about the states, to talk to me about options. will this be easier or harder for states to be in compliance? >> depends on the state. there is a ratio that they expect states to meet over time, and the ratio is difficult to understand, creating different kinds of goals for different states. >> this graph, darker colors are the states where more emissions are admitted, correct? >> we took a look at the standards and said -- how much do states literally have to cut a 2030? the regulation, believe it or not, does not specifically articulate that. interestingly enough, some states by our calculation could see their emissions rise over that. of time. we ran it through the epa's own model. we are taking their numbers and projecting it forward. howew research today shows states may not have to cut emissions by 2030.

this discussion has been framed that the entire country, collectively, is going to be involved in this endeavor, but how can this be if the country is supposed to do this and cut emissions i 30%? >> first of all, we are a big country. we could get there with different states doing different things. no question about that. notanother thing, they have set a specific amount, just ratios. think about a ratio, it is a new nadir -- numerator and denominator. here is anator complex formula they have put together. a long story short is that with all kinds of ratios, the numerator can rise. the -- denominator down.quickly, it can go >> shannon, what will this mean for utilities? how will that affect consumer electric bills?

>> even you have done a lot of modeling on that? >> we will have to see, but in our calculation if you wanted a 30% reduction by 2030, you would need a $25 per ton carbon price, which could potentially turn into a $12 per megawatt hour cost overall. .ut we do differ quite a bit very important to note the big differences in the region. ,> we are talking about health trying to improve the quality of peoples health, but meanwhile they will have difficulty saying their energy bills. they say that this will make energy more costly in the opposition for families struggling right now. how can we balance that against the health effects? >> at the heart of the proposal, the white house wants people to know that this is an immediate threat, not something that is years down the road. how does the white house do that in the face of this opposition?

>> they are trying to put real figures and real numbers behind. for example, with children's asthma, they say they can repeat -- reduce 100 and 50,000 asthma attacks each year, starting right now if they lower the pollution coming out of these plant. preventing preventable deaths, and that is now, not down the road. what they are saying right now. they are doing calculations to try to quantify all of it. >> we have not run the numbers on kids getting asthma, but the reality is that this is more politically palatable than rising sea levels. >> we will have to leave it there. ethan, shannon, thank you both so much. another check on market movers on the other side of the break. "bottom line" continues in just a moment. ♪

rose," on on "charlie bloomberg radio, lovefest, speaking with ira glass of "this the host ofe," and "radio lab," as well as the academy. for radio that is it for this edition of "online." from new york, thank you so very much for joining us. markets" is next. i will see you tomorrow. >> 56 minutes past the hour, bloomberg television is "on the

markets." let's get you caught up with the s&p 500. it three weeks of gains, are we going to continue to struggle at this rate? pre-much dead on the s&p 500 and the dow until later in the week when we get u.s. retail sales near record highs. record highs, we have a talk about equity, the dow 17,000, we are a few points short of that right now. another pushed higher by one percent, look at this chart. pretty much nothing. there is a lot of concern coming percent onear, four that index. speaking of an event in london, mark mobius says guess what, he is bullish on emerging markets and he likes frontier stocks as well. we will be sitting down with mr. mobius and we will bring you the headlines from london later this afternoon. we did a bit of a transatlantic exchange this year for the

summer. bringing it back to u.s. equities, the s&p 500 hitting 2000, it is these levels that everyone is talking about. how long will it take to pass key levels. does it matter? let's bring in mike reagan. i speak for smart money, so disregard this, is it silly that round numbers don't matter? to a few spoken strategists and was fully expecting to hear the same thing , but they do tell me that it matters a bit to the extent of not your smart money if you are analytical or a quantitative trader, but you have this sort of retail investor on main street, the round numbers kind of matter and if you look back to 10,000 the first time, the dow has struggled with 1000 and that was legendary. it started approaching it in 1968 that it was not until 1982 until the dow jones held steady

above 1000. same story from between 97 and through the.com bubble. back low enough, 2009, 1000. late in 2009 it recovered. we are obviously talking about bubbles there. there is more at stake than round numbers here, but what was closer -- what was funnier to me was the ages, he was turning 50 this year and he thought it would take him another 50 to get over that. >> equity markets right there. >> this is why people notice round numbers. this is why it matters. no one expects it to have a long-term effect on the market, but if you look at when the s&p was first approaching 1000 in 1997, before the tech bubble got heated up, it really flattened out there for six months. >> are we expecting resistance? >> we will have to see. some people are expecting a heck up.

milestone, and i still convinced that stock so the place to be? >> not for me, not from my kind. .ound numbers matter the dow, 17,000 this week, back on the markets later today. "street smart" is up next. >> u.s. stocks looking for some direction. still flirting with records. we will share some smaller u.s. companies. i am trish regan. "street smart" starts now. ♪ welcome everyone to the most important hour of the session. 59 minutes to go until the closing bell. coming up, tyson foods out