>> from bloomberg world headquarters in new york, i'm mark crumpton and this is "bottom line." today, ukraine's prime minister abruptly resigned. and then the big new burzynski discusses russia, ukraine, and the possibility of peace. and we will take a look at amazon. ♪ to our viewers here in the united states and for those of you joining us from around the world, welcome. we have full coverage of the

stocks and stories making headlines today. theerlichman he interviews head of amazon studios on earnings after the bell. megan hughes follows the investigation into google ads. peter cook is in washington with the latest on the crisis in gaza and the eu resignation of ukraine's prime minister. those stories in just a moment. seeking tozillow is combine the two most visited u.s. real estate websites. zillow could value truly as much as much as $2 billion an agreement could come as next week. colleaguecken and his alex -- allan sherman broke that story. we hope to get jeff in as soon as possible. stay with bloomberg television for the latest on this breaking story. as we mentioned in the open, our chief washington correspondent peter cook is joining us now, talking about two crises that

peter had the attention -- that, peter, had the attention of the international committee. ukraine and gaza. what is the latest. >> we will start in ukraine, where prime minister got the milk -- were prime minister yat senyuk, to the surprise of many, resigned. the government still fighting separatist rebels in the east, it's just adding to the chaos in ukraine right now. he negotiated ukraine's $17 billion loan from the imf. recently elected president poroshenko said they will allow for a full reset. he welcomes this change. meanwhile, the european union announcing in the last little bit that it will expand its list of russians facing sanctions, but will not release the list until tomorrow.

the bureau of spy chief could be on the list. the head of the foreign intelligence service could also be on that list. you have the russian security council head and the chechen leader. in all, 18 entities are on that draft list. notably, no major russian companies on that list, but eu officials are debating taking stronger steps as soon as next week. they include essentially barring any european purchases of bank shares or that. and an arms embargo -- or get a state banks. and an arms embargo as well as drilling equipment. that would be a blow to the russian oil industry. additional u.s. sanctions are also under consideration at this point. they are watching what happens in europe. they want to see the united

front in europe most importantly. >> and again, the world keeping its eyes on gaza as well, and the bloodshed and violence there. is secretary kerry making any progress toward a cease-fire? does not appear to be any real sign of progress at this point. in the last few hours, things have taken a turn for the worse. a school of palestinians was hit by shells today, killing at least 16 people. it was not immediately clear who was responsible for the shelling, but the israeli army did confirm it was battling inh, staying -- withhamas that area. no tangible sides -- signs that the two sides are any closer. gazailitary operation in will continue, benjamin netanyahu said today. hamas has vowed to keep fighting.

the biggest debate has been the biggestcision to -- the debate on the u.s. that has been the faa's decision to lift the airline band. united, fedex, and a number of other companies resuming flights, but american airlines ceo tells us that airline is still deciding what to do. >> peter cook, thank you so much. is aig man of burzynski counselor and former national to jimmyadvisor carter. dr. burzynski, thank you for coming back on the broadcast. >> nice to be with you. >> as was just announced, the prime minister of ukraine announced his resignation today. will this trip -- cripple the chance of a political solution between ukraine and russia? >> i don't think so.

first of all, there is a president who was elected and in charge. actions will have happening sooner rather than later. i don't know why the prime minister resigned, but he is the leader of the party. >> this week i might -- this week, the eu hit russia with more sanctions, but one has called them meaningless. he said what has happened today is peanuts. is he right? are the sanctions having the desired economic impact? >> i think he is comparing apples and peanut. because the situation with the soviet union is entirely different. have a partially

free and partially integrated economy. right now, russia has a .artially free economy the sanctions are definitely more me for the they would have been in the case of the soviet union. but they still have a long way to go to impose really serious pressures on the russians to accommodate a more realistic and more stable international relationship with the world. right now, they are acting as if they are a little bit out of control. >> i'm speaking with mr. brzezinski, counselor at the center for strategic international studies. peter cook outline some of the people who would be hit, some of the individuals. hy have they remained silent? but first, i don't think they first, ipleased -- >> don't think they are very pleased. but quite friendly, i don't know what these names mean in practical terms.

if one is reporting these names, one should to the extent that one can, indicate where their assets are and where they operate mainly full stop is it in certain foreign banks, real estate? it is symbolic. i think perfect world site missions -- sectoral sanctions should be coming soon. i hope the europeans live up to their obligations. after all, we are in this together and we have a shared interest in stability in europe, and not in the use of force to change borders. something that has not been attempted since the days of hitler. >> dr. brzezinski, let's go to the middle east and efforts to secure peace between israel and hamas. at least 16 palestinians were killed when a school came under attack today.

what can and should the international community be doing to end the violence in gaza and israel? >> the international community, which should include the united states, should demand an immediate sous fire -- cease-fire. it's not clear to me what the israelis are seeking to achieve. right that they demand that the evil in gaza stop firing rockets occasionally at israel. but beyond that, the blockade, the starvation, the hardship imposed on the people in gaza so they are living in a large-scale jail. is that legitimate? is that supposed to go on? hamas is moving to accommodation with the leadership that was in ramallah. the moment that started, the campaign began to the right wing in israel to destroyhamas.

because the right-wing does not want israel to be moderate. they want the seizure of more territory and he absence -- the absence of a larger settlement of palestinians. anyone who cares for israel should be concerned with the achievement of a long-term settlement and the coexistence of two states. the israeli white -- right wing does not want that. know, israel and the promise of benjamin is -- benjamin netanyahu continue to point out that hamas has called for the destruction of israel. and the prime minister has told reporters, you don't live here and you do not understand what we are going to run a daily basis. what is the solution? >> the solution is to move them step-by-step toward the acceptance of israel. they were going to join a coalition government with the leadership in ramallah, which has committed itself to a peaceful coexistence with israel. joining that cabinet was a significant step toward moving away from extremist,

unacceptable positions of hamas. but it cannot be appalled -- accomplished by killing women and children and bombing the place to hell. from thezezinski center for strategic and international studies, former and visor to president jimmy carter. dr. brzezinski, it's always a pleasure to have you on andy your perspective. and to have for -- your perspective. >> thank you for inviting me. ofcoming up, the chairman royce ona, ed political capital. and we will look at growth trends, why one of the world's biggest management consulting firms is saying to bet on a so-called old dog markets. ♪

>> just a few months after walmart got a new ceo, the company is appointing a new head of its u.s. business. julie hyman covers the story. it seems like walmart covers the country, too. where is he going? >> right now, phil simon is not going anywhere. but simon is also someone that was talked about as a potential ceo. the job over got him. it is not shocking that he is leaving. the same store sales have been lagging. is a sign of what is going on with the broader economy. also, the supercenter model, having a bigger store, has not been as successful. towardare gravitating more traditional grocery stores. there is a two-year noncompete

clause as part of simon's contract. that means for the next two years, we will not necessarily see him at another retailer. >> talk to us about greg foreign -- greg foran. he has never lived in the u.s. >> he is from new zealand. and haseen an investor worked at walmart since the age of 17. -- and he was formerly the head of australia's woolworth's supermarket. then ironically, he was passed over to become ceo of woolworth's, just as simon was passed over. ended up leaving woolworth's, joined walmart as head of their trip -- their china division, and then was promoted to the lead asia division a couple of months ago, and now this new

promotion. a pretty rapidfire offense. but what about some of the challenges he faces? >> in the u.s., the fact that the comparable sales have been flagging. the u.s. still makes up nearly three quarters of its revenue. he has to turn that business around. doug macmillan, the ceo, has ofd out this strategy smaller stores. you got to get inerrant do it successfully. >> julie hyman, thanks so much. areal asset managers backing growth mode. a recent study by the boston consulting group found that asset managers are showing record assets and near peak topics. -- profits. --y shepherd joins me now b, the author, jointly now. -- joins me now. what is driving this and are you

surprised by its strength? >> the main driver of this turnaround is actually equities and the bull market. returns, and in many cases, strong fixed income returns, are driving much of this growth. to? --surprised surprised? we do not forecast where the markets were growing, so we are not surprised at that. however, there are some surprises in parts of the world that we are seeing strong flows where we are seeing investors put money back into the market. >> the report key finding shows there is a global shift underway, that assets under management are moving from two speeds, developed and developing, to multiple lanes. mean for rapidly

developing economies? are they starting to lose ground? >> what we saw this year was the shift to multiple lanes, because we saw slowdown in the bull , or in the market growth in the emerging markets. but we saw a really strong markets in the developed world, the developed markets. the multiple lanes refers to strong growth across most , but with the world different drivers. in many of the developed markets, the driver was the bull market. however, if we look at these emerging markets, we continue to see net flows into markets at pretty healthy levels compared to the developed markets. but i'm speaking with gary shove boston marketing group. asset managers face the same

mandatory hurtles as the bank? >> certainly, the asset managers have not faced the same regulatory hurdles as the banks, particularly on their economics, because they are low capital users compared to banks. regulatory impact on their leverage ratios has been minimal. the impact for massive -- four asset managers has been primarily around reporting requirements and risk management capabilities they need. and they have responded to that in the past couple of years. fivee report points out so-called disruptive trends that all asset managers should be keeping an eye on. what are those trends, and can a actually berend helpful? >> in many cases, those trends can actually be helpful. for example, globalization or electronic dictation --

electronicification can be .isruptive if you have capabilities that are appealing globally rather than in your adjusted market, then the opportunity is there for you to access a much larger market than you had access to previously. on the downside, with globalization comes with -- with globalization comes the midget capabilities that you had out -- limitedarket capabilities that you had outside your market. shub joining us from boston today. thank you for your time. we appreciate it. >> thank you. >> still ahead, breaking news for the top of the hour. zillow seeking to buy rival truly a. we will talk to the bluebird editor who broke the news. ♪

>> be sure to check out the latest edition of bloomberg is this week. it hits -- business week. it hits newsstands and your tablet today. remember, if you missed any of our interviews, you can now watch them on bloomberg and apple tv. it features live streaming and on-demand results. we are approaching 26 minutes past the hour, which means bloomberg television is on the market. here again with us is julie hyman. lots to digest in terms of economic data. x yes, it's hard to believe it is the middle of summer.

let's take a look at stocks right now. a little bit of a rally, not much, but enough to push the s&p 500 yet again to a record. facebook earnings were positive. under armour is the best performer in the s&p because of its earnings. on the downside, some economic data was not up to snuff, particularly on halliburton and pat -- and caterpillar, driving down the dow. and some latebreaking news here. trulia is one that we have our eyes on. zillow is seeking to diet, which will -- to buy it, which would combine the two biggest in their industry. it could end up placing a $2 billion price tag on truklia. talks are still ongoing and may not result in a deal. and we are looking at barclays. they are asking a judge to throw out attorney general eric

schneiderman accusation of lying to customers in order to operate in dark pools. they insist that those who use this dark pool are highly sophisticated financial professionals. ♪

♪ >> welcome back to the second half-hour of "bottom-line" on bloomberg television. thank you for staying with us. let's continue the coverage of breaking news we told you about moments ago. seeking to acquire a rival according to people with knowledge of the matter. it is a move to acquire the to does most visited websites. broke the story and jeff joins me now. a big deal. >> it is. the dollar value, roughly $2

billion, $10 billion deals get ripped off every week. it is small and in dollar value. i have used both sites themselves. people are going to wonder, will -- what will the name be? >> we are talking about eyeballs. the story you and alex have on bloomberg.com and the bloomberg million, more than 85 unique visitors in june. 85% of the market is controlled by the two. the consensus in their -- is there real potentially be two players here and we thought, at this point, they are number one and number two. people are coming in all the time, some focusing on the writing side, so i think it is a realization that they probably

will be perpetually number two. let's bring it with number one right now where the shares are up and financing is there. >> what do they bring to the potential marriage? >> a lot is the size in the eyeballs. they have strength in different parts of the country in different consumers. you bring them together and you will dominate the market at least for a time. financing is readily available. you look at the shares. we are used to target shares. they are spiking lay-up. -- spiking way up. >> what does this say about online real estate? >> real estate picked up quite a bit. prices are up 25% in the last year or so. a good time to be investing in real estate. you will probably see more deals, whether we are talking about homebuilders and home product makers, another industry where emmett a is soaring these

-- m&a is soaring. >> thank you so much. that story is on bloomberg.com. the state attorney generals are investigating google, wanting more answers on whether the adsany is running illegal for prescription child pornography and other products which have grown into an $18 billion industry. has the details. first off, who is raising the concerns? >> it is a multistate investigation, but really the mrs. to -- mississippi attorney general leading the charge. a civileady to issue investigation into the company. int they tell you is good -- a meeting sounds good buddy go online and check it out and it is not true. to know how they screen

digital videos and ads, how do they place them, is the company potentially not removing illegal material including drug advertisements, and are they profiting? two attorney generals sent google a letter back looking at this issue. he still has not sufficiently answer the questions ms why they're taking the next step. >> what does google say about all of this? >> a spokeswoman says the company takes users safely -- safety seriously. they're constantly removing illegal at and any content exploiting children. from 220 million in 2012. steps intentnt to on marketing counterfeit goods.

in 2013 very when it comes to online pharmacy options, the folks there say they removed alone.s in 2013 >> megan joining us from washington. thank you. amazon is already knows for razor thin margins. it is making a big bet creating original shows. let's look at the company'strategy. jon erlichman joins me now. >> this is amazon earnings day. we talk about the lack of profitability at a company like amazon because of all the spending they do. in the case of this holiday story, what they are spending on original shows, on the likes of netflix and arguably hbo. if you are tied to big names like john goodman or the creator of the x-files on his program, the budgets will get big.

the methods we were told recently, we are big and are in this seriously. theyrms of how many shows will do, here is what he had to say. we have to figure out is what is the right number per year? we will could probably figure year.d agree one a probably doing one a week might be overkill. but there has got to be something between one and 52 per right.at will feel >> we will watch for more details on what amazon does about the holiday strategy on the earnings day. is -- >> beta for a

want the big awards. they do claim part of the strategy is to get feedback on the pilots they make available through amazon prime for customers to say i do or do not like his and that could be a whether they buy a whole season of shows. if they are successful, you have to wonder if traditional hollywood will open up their more. and get >> jon erlichman joining us from los angeles. thank you. coming up thomas a wage gap in the workforce. a closer look at wage inequality and how it affects african-american women and which is worse for providing equal pay. we will be back in just a moment. ♪

>> it is time for today's latin america report.

holdout creditors will request an emergency stay before the deadline for settlement talks. creditorsper reported may ask a u.s. district court only to allay his rolling defaulted bonds in full when servicing restructured debt. capital management alongside elliott called the story utter fiction. the delegation of officials, their meeting with a mediator tried to reach a settlement with holdouts. if argentina does not reach a deal, the nation will reach default. that is your latin america thursday. this

on average, american women who work full-time year-round are paid $.77 for every dollar paid to men. african-american women who work full-time year-round are paid only $.64 for every dollar aid to white and non-hispanic men. vice president for education and employment at the national women's law center in -- thank you for your time today. >> thank you for having me. >> we are talking about a loss of nearly $19,000 a year. are the reasons obvious or structural? >> there are several reasons for the wage growth -- wage gap. after american women are overrepresented in some of the lowest paying fields and we have not seen an increase in the wages in a long time. some of the reasons are that they make up really small amounts in the highest paying

fields. we found in our study no matter what occupation, they still made less. >> the report also shows that at every education level, african-american women experience a wage gap. what message does that send to young black women who have been told education is the gateway to success? >> it certainly matters. it matters a lot. the wage gap was largest for african-american women who did not have a high school degree. getting one makes a big difference. what was startling was that even when african-american women had a college degree, they still made less than white men who did not. >> let's take a look at states. disturbingics are and they caught me off guard. which states are the worst offenders?

>> one of the states that comes as a big surprise is washington, d.c. because the wage gap for is smallest in washington dc but it is one of the worst laces for african-american women. >> i saw by the data your office sent this -- sent us that louisiana is one of the worst ones. >> what is really troubling about louisiana, and some of the arer states, they especially large populations of black women in the states where you have large wage gaps. what that says to me is places somelouisiana need to take steps to a dress it. >> refineries go back to 1967 through 2012. older data reveal? >> from the moment anyone began

tracking the wage gap, there was a gap. you can tell by looking at data that is almost 50 years old that women made less than men overall and women of color, african-american women in particular, had a particularly large gap. the wage gap has closed over the .ast 50 years but has stalled we have to take new steps to make progress. >> are those legislative? >> legislation can play a big role. things like -- there is a bill called the paycheck fairness act. it makes a difference. i think it is the sort of thing that has to be holistic. should the act have solved when the first legislation

-- barack obama signed when he became president. it, people could not get into court to challenge unfair pay in the first place. put him back to where he had been for the last decade. there are bills like the that wouldirness act deal with some of the problems that would lead to pay like transparency, like the fact there are not good enforcement tools. >> i have 30 seconds left. these numbers mean for some women, they will be locked in a cycle of poverty? >> it is an example, it really is. it means for a woman and women of color in particular, they are losing out on wages throughout the course of their lifetime and that hurts them and their family.

>> employment at the national women's law center joining us in washington. thank you for your time. i appreciate it. still had come president obama is on the west coast today expected to go on the offensive on curbing tax avoidance. that story when we continue in a moment. ♪

>> president obama is going on shipttack on companies who jobs overseas. phil mattingly is at the white house with more very good afternoon, phil. flex good afternoon, mark. wordsic patriotism, two he will almost certainly hear the president discussed today. those are u.s. companies that merged with companies in an

jurisdiction where the president has become the highest profile advocate ranging the tax law. that is something jack lew says could cost $17 billion over the next decade. a heavy campaign push behind this. it is an issue they can seize on. ofing for some type retroactive legislation hoping to cut back in a process -- -- cluster are house democrats that have proposals not even moved out of committee states yet. senate democrats are wary in the short-term and unilateral.

on capitol hill, they want broader tax reform. >> what is danny millay? what are the hurdles? >> test form to do this broad-based individual tax reform and not some site -- some term fix.ort they think this is a domestic issue the president thinks resonates with the broader it polls well-- and works well and republicans view this purely through that spectrum. as long as that is the case, you will not see any movement. >> thank you, phil.

stay with us. another check of market movers is on the other side of the break. stay with us. another check of market♪

>> that does it for this edition. thank you so much for joining us. on the markets is next and i will see you tomorrow.

>> it is 56 minutes past the hour and bloomberg television is on the markets. let's take a look at where stocks dan. a mixed fisher with the dow and nasdaq in the red. s&p is the hanging onto gains. it is not a record still, at aast if you look at it at closing basis. the rally has gone on and on in dos. we have seen volatility remain at unusually low levels. time.12 at the presence with stocks i, the market looks a lot like it did just before the fourth -- the start of the financial crisis. does that mean we are headed for another recession? .oining me now is. i am guessing we are not headed into another recession? beenis recovery has

mediocre. if you think about recession as a response to the economic throughwe are barely the slot created in 2008. >> are there other warning awayls that can be taken what are the risks and phone her abilities? >> the market recovery, a lot of it has already happened. the upper the year on end of value, moved into expenses, and the risks are earnings do not come through. that is the big thing to look for. >> investors are really stuck right now at the same time. you have that risk, what if oil goes etc., and yet if you

look outside of stocks, there are not necessarily many attractive opportunities. is no alternative to equities. he look at equities and you say, they are offensive and i should sell my equities, what will i buy? reality -- >> is the u.s. the best place to be? u.s. equities? a lot of investors are looking to europe right now. some are starting to look at emerging markets and him equities are more attractive. valuations,of certainly. emerging markets are the cheapest.

we see an opportunity over the next 12 months or so. timing it perfectly may be a problem. europe, we like. the safest and most stable so we have the highest prices. >> get what you pay for. >> thank you so much. we appreciate your time. on the markets later. "street smart" is next. ♪

>> welcome. 60 minutes to go until the closing bell. investors with two economics reports to close today. eight years and is planning home sales. -- for 500 for the for the third straight day. we start right now. ♪ today on street smart.