towrote in a separate bill grant asylum to undocumented children already in the men's days. have left some angry with the entire debate. here are some of the conversation from the floor today. >> and looks like the bill without the republicans would want to bring us in security rsly, no to dreame supplemental. fix our broken immigration system. >> i approve parts of my -- i ha myheard the hearts of colleagues across the aisle. but we're a nation of laws. what bella still going nowhere

even if it does pass the house of representatives. president obama has promised to .eto the legislation pass was an attempt to $2.7 million legislation that is closer to what the president wants, but also bottled up on the senate. end of the day, this crisis is not good to be any closer to being dealt with. thee russianreal questions abot handling of the children of the border if there is no agreement between the house, senate, and president. isafter this vote, there vacation, no one will be in town. , yes.e week vacation

one final measure that did pass, a final measure to israel. >> thank you. it is the one question that tesla ceo elon musk will not answer. where will he build his factory to produce batteries for electric cars? five states have made bids, and we did get word that they broke ground in nevada. still no final location, but did they announced they broke ground in nevada? >> they did. they have broken ground near a location near reno, nevada. besidesfour states nevada are still in the running. leastill start work on at three potential sites, and decide by the end of the year which one to build to completion based on the speed of regulatory approval. it is still very much everyone's game, and everyone wants a piece of the $5 billion factory that

would employees much is 6500 people. what can nevada offer tesla? and none of the states will disclose specifics as the negotiations are still ongoing. we do have i an idea of the cards they may be playing. boast no corporate or personal income taxes, job training grants, it is a right to work state, and they have a proximity to the fremont plant. the governor and state legislature to now come back to tesla with an attractive incentives package. they expect the state selected to provide about 10% of the factories cost, which means that tesla is looking for $400 million to $500 million. great that is a huge ask. can the state the 40? -- can the states afford that

much? >> texas and california may be more suited to answer that call. both of them have done -- every state is jockeying for this project, but perhaps no more than california. they have two pieces of legislation, one that has already been passed and one that .s pending texas governor rick perry also once this project -- wants this project. it really hope that the plant was there. that is something we're going to have to work on. really dragging this out. >> he really is, but he is no stranger to state bidding wars like this one. he did something similar for spacex launchpad, which texas

won. only about five months in, whereas spacex took fivyears. >> u.s. employers added more than 200,000 jobs to payrolls for the sixth consecutive month in july. what does this mean for the u.s. economy and for the federal reserve as policymakers consider when to raise interest rates? welcome back to bottom line. good to see you. >> thank you. is strong, itwth is broad-based them about the bad news is that americans pay checks are not reflecting the improvement in the labor market. why not? ofthere are still a lot slack in the labor market. if you add up all of the unemployed and underemployed it comes to two percentage points as the labor force. that is a lot of slack, that keeps wage growth contained.

we need to get to that point were wage growth will pick up in a more consistent way. >> at what point will start to reflect those wage gains? great jobsntinue to at the pace we are currently, since the beginning of the year, then by this time next year i think the labor market will be tight enough that we will start to see some stubs and to wage growth -- substantive wage growth. le will approach full poi .mployment we're about two years away from full wage growth. wage interesteep .ates low

is there anything that would move them off the position? >> i think the report was very much in their script. they can buy into my narrative of what we have been getting, and we can get back into a place where we gets assistant wage .rowth >> that was other data today that showed manufacturing growing up fastest pace in more than three years. with this give the economy the tailwind it needs? >> yes. they are providing a lot of jobs. in today's jobs numbers we saw manufacturing. a lot of it is related to the vehicle sector. it is back to pre-recession levels.

we produce a car, you produce a lot of other ineffectual products -- manufactured products. >> thursday the was a drop of 317 points on the dow industrials. what had investors concerned? it is hard to put that into context. the stock market is up over last several years. we are still up or percent on the year-to-date s&p. gainsis the single digit in the stock market that is a typical year. investors are nervous about when the federal reserve will start to begin raising interest rates.

given the data we got yesterday and today before, they have begun to think that the fed will raise rates sooner than they had for beasley told us -- previously told us. that is the concern, and thus the correction in the last three days. >> there's a fascinating story on bloomberg.com about increasing labor market polarization. the main take away from the story is the minimum wage employment is moving the u.s. past that food jobs. -- fast food jobs. what is making this more inclusive? jobscreasingly high-paying , and middle paying jobs where .e have been lagging

middleocal jobs are the paying for bandwidth lost a lot of those. and manufacturing jobs until recently have been declining. >> chief economist for moody's analytics joining us from us to resume. always a pleasure to get you on a happier perspective. thank you for your time. >> thank you. >> a three-day cease-fire in gaza unravels an hours -- in ours. -- in hours. ♪

>> welcome back. a cease fire agreement that brokered a possible agreement

fell apart 90 minutes after creation. how did things fall apart so quickly? >> the secretary of state john kerry, while traveling in india told reporters that a 72 hour unconditional humanitarian cease-fire was a moment for the side and factions to come together and to set in motion a addressing the underlying issues. 12 hours later it was broken and kerry was out with a statement condemning the killing of soldiers and the induction of another -- of reduction of one other. gaza health officials and said that the israeli forces have killed 35 palestinians and wounded more than 100 more in action after that initial attack

was morning. no clear path forward for diplomatic resolution and that is raising more more concerns amongst u.s. officials. what the cease-fire agreement entail? 72 hour halt in all military actions. the delegation will not be leaving th. what is happened today is a strong reaction from israeli forces bases on the abduction of that fo soldier. we are further apart than we were long before the cease-fire was announced. >> phil mattingly joining us, thank you. mountingces

roadblocks due to sanctions from the european union and the united dates. -- states. a group of seven nations saying it will vote to block any new world bank projects in russia. powerful is the g7 at the world bank? is there any way that russia can work around this? >> it will be very difficult. altogether they have more than 40% of the votes. even though the world bank is supposed to be an institution that works on consensus, what can you do when you're the world bank president and you know the world's most powerful nations will vote against you? you don't bring anything up. >> how much of an impact will this have on russia economically and otherwise? >> russia does not technically need a lot of money from the world bank, but what emergency emergingn general --

markets in general light from the world bank is the peace that it brokers. head of the g-20 just a year ago, and they have been completely isolated. this was designed after world eradicaterenegad poverty. >> why are they taking this action? >> they have to be coherent. they decided to stop lending at the european bank. if you do that at one development bank, they to do that at the world bank. think it is a little more discomfort for the world it is aause global bank. it is hard to justify because you're hurting the poor.

>> thank you. next, after ditching rupert murdoch we will look at what time warner is doing to make itself more attractive to other potential suitors. ♪

>> welcome back, this is "bottom line," live on bbg television and streaming on your phone, tablet, and at bloomberg.com, now on apple tv and amazon fire tv. remainrner may not independent for long. talk to us about the strategy? y. is this to make time warner more suitable to other buyers? slim liningas been

allcompany, spinning off those extra businesses. any printed matter is a much more challenging business. >> is it safe to say that from now, we have been leading up to this point? >> i do not think the grand plan was that he thought he was going to sell this and he needed to make it good for that. assets did was remove that do not make sense with the main business which is great value for shareholders. as chief executive that is all you're trying to do. all these things upfront up front which he did, i think the inadvertent consequence of that

was all of a sudden it affects this really attractive property. a clean balance sheet about good assets, and made it look more attractive. in media right now there's consolidation happening on the distributor side, the pain he be companies -- paid tv companies/ . the programmer side now things that they have to consolidate to compete against the distributors. >> are we going to see more of these content titles? >> you probably will. will be harder with the bigger guys, but some of the smaller channels, whether it is bmc or the scripps network or even discovery, they are probably looking at how to be bigger to compete. >> thank you. on 26 minutes past the

hour, bloomberg television is on the markets. su keenan is standing by. >> let's get you caught up on where the markets are trading. we are starting to see a turn in what has been a down trade. the s&p trying to move higher. it is on track for its worst week since 2012. all three indices off of the lows of the session. valiant pharmaceuticals is being allergan. stock only aware of the takeover intentions. the luxury upscale hotel operator returning cash to shareholders, declaring a special dividend of $.65 per share. 400 millionincludes more than the previous

authorization. we are back on the markets in 30 minutes. ♪

>> welcome back to the second half-hour of bottom line on bloomberg television. i am mark crumpton in new york. thanks for staying with us. the president of the united states is expected in the white house press briefing room in about five minutes or so, topics expected to include the conversation he had today with russian president vladimir putin and perhaps the situation in gaza between israel and hamas. as soon as that conversation gets underway, we will bring it to you live. let's check some top stories this hour. we begin with the jobs report

for july. employers added more than 200,000 jobs for the sixth consecutive month. it is evident that the world's largest economy is making strides toward faster growth. the unemployment rate dropped to s startedore american looking for work. has announced he will resign on august 18. he served in congress for 14 years. he lost to a relatively unknown conservative supported by the tea party. hamas and israel blame each other for the cease fire breach. the u.s. and the yuan had hoped start duringould the cease-fire. that is a look at the top stories this hour. geopolitical says

unrest will not affect equity markets. he is a strategist at tiaa-cref. line,e back to bottom dan. it is a pleasure to see you again. let's start with geopolitics. international sanctions against russia. talk about economic performance and growth rates if russia raises energy prices. >> that is always the impact you're trying to evaluate. generally speaking, they don't have too much sustained impact on the markets, but this might be different. we have already had more stringent sanctions ban a week ago. the bigger threat on the horizon as if russia raises energy prices. that will crimp economic growth in the region. >> talk about the back-and-forth on the sanctions. is the united states insulated

on this? >> it is. exports littlees an to russia and imports little from russia. the bigger impact will be in the equity markets, the dax in germany being down more than the footsie in the u.k.. >> we mentioned earlier in the broadcast, six straight months of job growth in the u.s.. july employment numbers coming out today. what does this tell us about how american businesses few current economic conditions? >> it's encouraging. about the numbers that came out after the better , is expected gdp number much that thetoo fed needs to move sooner to

raise interest rates. >> say before 2015 or the middle of 2015? >> we don't think so and the other part that was encouraging is that we saw the unemployment rate go up because people were coming back into the workforce. there is a reserve of labor out there and as the economy gets stronger, these people are going to come in and keep wage pressures under control. i spokeer in the hour to mark zandi of moody's analytics and we were discussing the market selloff yesterday, 317 point drop in the dow jones industrial average. is this an inevitable part of the cycle because we have seen such low volatility? >> i think so. in some ways it is encouraging. investors are continually taking tock of opportunities reallocate their portfolios. it is actually a good thing to some degree.

the fundamentals are still for positive gains. have been covering the argentinian debt story all week long. will this have a ripple effect or is it more of a regional event? >> it's definitely regional. high-yield yields went up more than market debt. fine.eally seem to be it is a particularly unusual situation with argentina but it doesn't tell you much about corporate growth or government profit yields. >> this earnings season in the u.s., how would you categorize that and what impact has the fed's taper schedule had on american companies and how they do business? far, it is relatively minimal impact. the earnings turned out to be ok. thele were worried about

impact of tapering. as earnings continue to come in, they are still above expectations. prices are not that bad. i think it is still a nice environment for equities. >> always a pleasure to have you on the broadcast. thanks for coming in. coming up, president obama is expected to make a statement in the white house press briefing room in just a few minutes from now. we will bring it to you live. bottom line continues in just a moment.

>> it's time for today's latin america report. we are discussing argentina's debt crisis. we hear it it could be over $1

billion in credit default swaps. what is the impact of that? had a governing body meeting this morning and there confusion about what they would alternately decide. a credit event will trigger the swaps and now a somewhat imprecise process of negotiation happens. they are going to value the bonds and then the parties will get together and negotiate payments. we're not exactly sure how long that will take. >> we are looking at a possible domino effect because other bondholders might exercise their right and demand immediate repayment because of this default. if that happens, is that just another pandora's box? >> that is potentially quite serious. there are clauses in the bonds that say failure to pay one bondholder could trigger

repayment for all of the bonds. of the outstanding holders have to get together and tell argentina we think we deserve repayment under our contract. we are going to demand this money. that is the next big question the argentine government and the issue to be resolved from this ongoing, messy negotiation. >> and in the meantime, there's over $500 million in the bank that they can't touch, right? >> the easiest solution would be for the judge to allow the payment to go through because argentina is saying they have not defaulted. they put the money in the bank of new york mellon. that is the trustee for the bondholders. we wash our hands of it. technically, they have defaulted because the money has been blocked. >> argentinian officials believe it is a technical default

because the money is there. >> the president said last night that they have invented a new term, selective default. she had harsh words for the judge. she said they have not actively defaulted. it has become a bit political for her. she does not want to cave in or thenything to hurt argentinian people. >> or president cristina fernandez de kirchner defiant. what is her strategy going forward? >> it is an interesting conundrum. the best scenario would be for the payment to go through. default is not a complete disaster for argentina in terms of the rulers and political class. >> this is not 2001. >> exactly. whichs serve one purpose, is that it eliminates a lot of the leverage the hedge fund had. their leverage was we are going to push you into default. they areefaulted. now going to argue for either the

judge to lift the stay and allow this to go through or for someone to give them more time. >> what is the best case scenario for argentina at this point? no great scenario, but i think one possibility would be that the judge caves to all this pressure. he told the lawyers this morning that the client, argentina, was not helping themselves by making all of these hyperbolic, inflammatory statements that weren't really true. the judge seems to be holding firm in his possession. >> before we go -- because of the tentacles of this -- we had some guest on discussing this before and argentina had taken in the paper trying to rally support to their side. folks like elliott are demanding their money in one payment in full. we historical perspective, are talking about companies who

got in during the first default. i guess the situation now has spun so much out of control that they are saying ok, we want all our money but we don't want to take a pay cut. we don't want to take a haircut. we want every dime back. >> this sort of thing does not happen often. we are in a little bit of unchartered waters. but it is anault unusual default. it is not like what happened in 2000 and one. it is messier because partial payment had occurred. a lot of this is going to get sorted out in a new york court. >> before he let you go, did you find it odd that with a deadline theoaching on thursday, folks from argentina came to new york at 6:00 p.m. on wednesday night, a day before the deadline. have we figured out why they came so late? don't know the reason.

there has been some interesting body language from them from the beginning. it could be cultural differences. the economy minister is the one who kind of breezed in late to that meeting. hasugh the whole thing, he not inspired a lot of confidence that he is taking this seriously. during the press conference after the whole thing fell apart , he rambled on. he hurled insults. one got the sense that he is a little out of his depth. we will have to see what happens. >> the president of the united states is in the white house briefing room. let's go live. >> over 200,000 new jobs in july on top of 300,000 new jobs in june, the we are now in a six-month streak with at least 200,000 new jobs each month. that is the first time that has happened since 1997. year, we have

added more jobs in the course of a year since 2006. the longest streak of private-sector job creation in our history. saw on wednesday, the economy grew at a strong pace in the spring. companies are investing. consumers are spending. american manufacturing is booming. and thanks to the decisions we have made and the grit and resilience of the american people, we have recovered faster and come farther from the recession than almost any other advanced country on earth. the economynews is is clearly getting stronger. things are getting better. our engines are revving a little bit louder. and the decisions we make right keep thatstain and growth and momentum going.

afortunately, there are series of steps we could be taking to maintain momentum and perhaps even accelerate it, there are steps we could be taking that would result in more job growth, higher wages, higher incomes, more relief for middle-class families, and so far at least in congress we have not seen them willing or able to take those tips. i have been pushing for common inse ideas like investing infrastructure for many years. i have advocated on behalf of raising the minimum wage. fair pay. paid leave. all of these policies have two things in common. all would help working families feel more stable and secure.

all of them so far have been blocked or ignored by republicans in congress. is why my administration keeps taking whatever actions we can take on our own to help working families. now, it's good that congress was able to pass legislation to and i wantthe v.a., to thank the chairman and ranking members who were involved in that. it's good that congress was able to at least fund transportation projects for a few more months before leaving town, although it falls far short of the kind of we need thate would actually accelerate the economy. for the most part, the big ticket items, the things i would really make a difference in the lives of middle-class families, those are not getting done. let's take immigration. we all agree that there's a problem and needs to be solved in a portion of our southern

border. and we even agree on most of the solutions. but instead of working together and focusing on the 80% were there is agreement between democrats and republicans, between the administration and republicans, as we speak, are trying to pass the most extreme and unworkable portions of the bill that they already know are going nowhere. they can't pass the senate, and if it were to pass the senate i would veto it. they know it. they are not even trying to solve the problem. this is a message bill that they couldn't pull off yesterday so they are making it more extreme to see if they can pull it off today, just so they can check off a boxed before they leave on vacation. and this is an issue they all insisted had to be a priority. have at the moment slowed the tide of child

migrants coming to our country, but without the aid of congress we will not have the resources we need to solve the problem. while they are on vacation i will have to make some tough choices to meet the challenge with or without congress. even though they have been sitting on a bipartisan immigration bill for over a year, yesterday house republicans suggested that they to pass a bill i can sign, so i should act on my own to solve the problem. keep in mind a just a few days earlier they voted to sue me for acting on my own, and then running couldn't pass a bill yesterday they put out a statement suggesting i should act on my own because they couldn't pass a bill. so. immigration has not gotten done. wouldent loan bill that ha help students with debt

consolidate and refinance at that didn't pass. the transportation bill that they did pass gets us through the spring when we should actually be planning years in advance. states and businesses are raising minimum wage for their workers because this congress is failing to do so. even basic things like approving career diplomats for critical s aren'torial post getting done. last night, for purely political republicans for a certain time blocked our ambassador to russia. it cause such an uproar they finally let it pass. this is a time when we are in constant dealings with the ukraine. they are blocking our ambassador to sierra leone at the time of and a bolus outbreak.

they're blocking our ambassador as they demanden we stop the flow of children from water maliki there are a lot of things we can argue about guatemala.- from things we cant of argue about on policy, which is what we should be doing politically, but there's no reason to block ambassadors. our challengers are not as daunting as they were when i office, but the american people demand a focused effort on the part of all of us to keep the country moving forward and to focus on their concerns, and the fact is we could be much further along and could be doing even better, and the economy could be even stronger, and more jobs could be created if congress would do the job that the people sent them

here to do. and i will not stop trying to work with both parties to get things moving faster for middle-class families and those trying to get into the middle class. when congress returns next month my hope is that instead of partisanying to pass message bills on party lines that don't actually solve beblems they are going to willing to come together to at least focus on some key areas where there is broad agreement. after all that we have had to overcome, our congress should stop standing in the way of our country's success. with that, let me take a couple of questions. and i will start with roberto ramsden of reuters. why do you think israel should embrace a cease-fire in gaza when one of its soldiers appears to have been abducted

and when hamas continues to use a network of tunnels to launch attacks? toe you seen israel do more protect civilians? >> first of all, i think it's we havet to note that and i have unequivocally condemned hamas and the palestinian factions that were responsible for killing two and abducting a minutes after a cease-fire had been announced. the yuan has condemned them as well. i want to make sure they are listening -- the united nations has condemned them as well. i want to make sure they're listening. if they are serious about resolving the situation, that soldier needs to be unconditionally released as soon as possible.

been very clear throughout this crisis that israel has a right to defend itself. no country can tolerate missiles raining down on its cities and people having to rush to bomb shelters every 20 minutes or half hour. no country can or would tolerate tunnels being dug under their lands that can be used to launch terrorist attacks. so, not only will we support israel in its right to defend itself, but in concrete terms we have shown support for the iron dome program that has intercepted rockets firing down on israeli cities. we have been trying to cooperate is much as we can't make sure that israel is able to protect its citizens -- as much as we is to make sure that israel able to protect its citizens. at the same time, we want to make sure that innocent civilians in gaza, caught in the

crossfire, have to weigh on our conscience and we have to do more to protect them. a cease-fire was one way we could stop the killing, step back and try to resolve some of the underlying issues that have been building up over quite some time. israel admitted to that 72 hours and it was violated. trying to put that back together has been challenging, but we will continue to make those efforts. let me give secretary of state john kerry credit. he has endured a work hard and that many times had unfair criticism as he works to simply theto the point where killing stops.

he has underlying issues about israeli security and also the concerns about palestinians in gaza to be addressed. we are going to keep working toward that. it is going to take some time. i think it's going to be very hard to put a cease-fire back if israelis and the international community can't feel confident that hamas can follow through on a cease-fire commitment. it's not particularly relevant to whether a particular leader in hamas ordered the abduction. the point is, when they sign on , they are-fire claiming to speak for all of the palestinian factions. a cease-fireonto and just a moment later you have israelis being killed or captured, it is hard for

israelis to feel confident that a cease-fire can actually be honored. i am in constant consultation with prime minister netanyahu. national security team is in constant communication with the .sraeli military i want to see everything possible done to make sure that the palestinian civilians are .ot being killed it is heartbreaking to see what happening there. the one hand, israel has a right to defend itself. , because of hand incredibly irresponsible actions on the part of hamas that powers these rocket launches rightnow middle of civilian neighborhoods

, we end up seeing people who have nothing to do with these rockets ending of being hurt. why we havereason been pushing so hard for a cease-fire is precisely because israel'sd to reconcile legitimate need to defend itself with our concern with those civilians and if we can pause possibleing, then it's we may be able to arrive at a spares lives and also ensures israel's security. , and i don'tlt think we should pretend otherwise. have called for diplomatic solutions not only in , toel in ukraine and iraq

very little effect so far. has the united states of america lost its influence in the world and have you lost yours? >> this is a common theme that folks bring up. apparently people have forgotten that america as the most powerful country on earth still does not control everything around the world. diplomatic efforts often take time. they often will see progress and then a step accords. that has been true in the middle east. that has been true in europe. that has been true in asia. that is the nature of world affairs. it is not neat and it is not smooth. if you look at