from bloomberg world headquarters in new york, this is bottom line. today, russia bans some food imports in response to u.s. and eu sanctions. in westh toll rises africa's ebola epidemic. we will look at how cap affairs affect a passenger's tip. fares affect a passenger's tip. in the united states and those joining around the world, welcome. we have coverage of the stocks and stories making headlines.

cory johnson has details on google and barnes & noble partnership to take on amazon. olivia sterns looks at tax shelters used by the ultra-wealthy. alan mowbray down the -- alan will break down the food and import ban on russia and the u.s.. it is imposing a sweeping ban from the u.s. and europe. joined on the phone with the very latest. how are the russian people reacting to the news? are they are likely to see food shortages? >> the government reassured the russians, saying that there will not be any food shortages. russia would not be going back to the soviet or the early 1990's type shortages. there are concerns that one of the biggest and publicly traded , whichant holdings

manages the tgi friday's franchise in russia said the government a on food imports would cause difficult situations for restaurant businesses. there is concern. >> do we have ideas of how investors are reacting? index fellian market to a three-month low, led by the biggest russian retailers. some of them falling more than 5%. investors are concerned about this. that the import ban would hurt the earnings of the biggest russian retailers as they scramble to find replacement for foreign imports. >> ksenia galouchko joining us from moscow. let's look at how the import ban will affect the united states. joining me from washington, alan.

what is this move having on the markets? market mostthe affected his goal. ukrainian tension has folks looking for safe havens. food markets are not moving a lot on this. the united states does export about one point $3 billion of food to russia in the course of a year. we have a 150 billion dollar food export economy. the level is about the same as the demented republic. -- as the dominican republic. could be ad this likely target of russian retaliation. that day has arrived. of fooda has a history trade restrictions. tell us about the history. >> when you look at poultry markets, as recently as late in the last decade, russia was the number one export destination for u.s. poultry. it has gone from about 40% in 7% today. to

it is getting headlines now. has is a market that already been affected before this. onhow do these restrictions food trade work and isn't likely to have any lasting damage on u.s. businesses? likely to have any lasting damage on u.s. businesses? >> in the 1980's, the carter administration had a grain embargo. it did not work. food markets are very fundable. russia is trying to punish the united states by not buying its food. there are other people that can buy the food from the u.s. and the russians will find other sources. there will be some disruption, some of food inflation impacts. companies will address -- will adjust and it will get back to a new semblance of normal. >> alan bjerga joining us from

washington. now, the battle over books. google is teaming up with barnes & noble to take on amazon.com. cory johnson is in san francisco with more. tell us about this new deal. has had a local delivery service and a handful of cities with a number of retailers, such as best buy. what is interesting is the partnership with barnes & noble. it is showing that they are doing the same kind of business as amazon.com, delivering books within four hours time at their front door. google is not taking inventory. -- they are store doing this in a handful of locations. they will go to a barnes & noble store that has been selected by barnes & noble, the book is packaged up and then the google truck will pick up the book and bring it to the user. i think it shows and shines a

light on the competition -- this new competition -- of local delivery. google, andzon, ebay making serious efforts into this arena. >> why is google doing this now? >> the big impetus is amazon is changing their distribution model. within the last two years, they have agreed to pay local sales sales taxes,te where consumers are buying things. they have had to change their business model. they used to keep distribution centers, they used to call them , they aret centers moving from places like nevada in low tax states to much closer to consumers. you have them just outside of major cities and increasingly building big places. to be closer to the consumer, that allows them to do this 24 hour delivery. that will cut the slumbering giant of ebay and google.

if they can do that, we can do it too. >> speaking of feeling fulfilled, amazon is such a giant. do amazon and barnes & noble stand a chance of catching up? to be a is going rigorous competition. barnes & noble is fighting the huge disruption in the business caused by amazon. what this does not do -- when people want a book right away, i get it on a kindle. people like me, we still buy a book and put it on the shelf. amazon sells more digital books than print books. that is the future of the business. this is one way for barnes & noble to keep up with this pace of change. >> you have shelves? and graduations. >> lots of shells on lots of books.

>> switching gears. as the ebola death toll rises, hearing on the virus will be underway in washington. global health experts have gathered for a meeting of the world health organization. washington with the latest. what can we expect to come out of this meeting? they are on day two. the final day of the emergency meeting. the big decision -- whether to label this as a public health emergency of international concern. to do that, the who will have to look at the numbers and the spread. the death tally mark, 932 through monday. nearly all have been in lyon area -- have been in liberia, sierra leone, and nigeria. -- and ginny.

we will not get a readout of the meaning until late tonight, early tomorrow. >> what happens if the who does give it the classification? >> the classification would give local health officials and international authorities more tower -- more power to respond, to quarantine people if they need to. it would also mean more funding. it will come with recommendations on what to do next. treatment, itated will be interesting to see what that looks like. the emergency could be taken as a signal by the private sector and we could see a trigger companies to evacuate nonessential employees. else we are waiting on, next week marks the who convening a -- the use of experimental treatments of

treatments for ebola. >> isn't it a little late for the who to be convening all of these meetings now? >> that is a great question. who should have taken a stronger leadership position earlier in the outbreak. reaching a point was not easy, giving the political sensitivities. they have a viewed themselves as a technical advisor. respect the sovereignties of these nations could be a reason behind this delay. >> thank you. coming up, the mayor of syracuse, new york. what she is doing to invest more in her city's neighborhood. ♪

departmenterce

reports increased spending in the second quarter at an annual rate of three .1%. the biggest jump since 2009. syracuse, new york is leading the way. the mayor joins me. welcome to "bottom line." >> thank you for having me. >> what is the blueprint for coming out of the recession poised for growth? >> during the recession, we were fiscally responsible. we made sure we did not bond for anything we did not have to and we made tough choices. we went into a hiring freeze, we did not extend ourselves. but we have had to do was cut back on infrastructure repairs. what we are looking at doing now, we have put the worst behind us and we have increased bond ratings. we are focusing and talking with other partners about how can we make the needed investment in infrastructure.

since you mentioned infrastructure, is it time for the folks in washington to reengage in the conversation about an infrastructure bank? would that help? >> it would help. it is one potential solution. whether you are looking at a water main break in los angeles that is covering ucla or in syracuse, new york, were in detroit, we are seeing the infrastructure across the country crumble. on citiesy is based in the economic development of the cities. if you have gas leaks and problems in new york city, or water mains exploding, we're not going to be able to build these kind of economies that are going to poison up for leadership in the century. >> one of the top drivers of cost in your city is pensions. how is that impacting your budget priorities and what have you told retirees about the need to keep the city fiscally solvent, but at the same time,

honoring commitments made to them? constitutionally and guaranteed by the state. what we have said to our retirees as we are going to meet the obligations, but we have asked them to be conscious of how much it costs us in the dash and the reality is if we are paying all of the money in pensions and health care, we cannot buy new police cars and fire trucks and it has forced us to make tough decisions. worst partduring the of the recession was to make sure we paid the pension bills, though we cut back on other things that are not luxuries, but were discretionary. some of my colleagues chose to borrow for their pensions. we did not. that ouring told highest pension contribution rate is going to be coming up this year and there is a light at the end of the tunnel. that will free up some more money. health care continues to be a huge issue for us. it is for all governments. >> we are speaking with the

mayor of syracuse, new york. many cities feel their fortunes were -- fortunes rise and fall because of housing. how did you keep neighborhoods from turning into blighted areas ? >> we were fortunate. in the housing bubble. our housing costs have stayed relatively stable for the past 20 to 30 years. we were able to escape that. we have had light in our housing and city as well. we have looked at other models that are working. we have a brand-new land bank. one of the first in the country. we are taking our properties that have been abandoned and we are giving them to the land bank to market them and turn them over. notst to that, the city did take over properties for being taxed to link with because my theecessors did not want liability of owning the

properties. we put the land bank into place and said we're going to take your property away what i did is three things. the first is, people started paying their taxes. a realize we were serious. the second is, gave hope to neighborhoods and people who lived in our neighborhoods to say, the city is going to do something about that blight. the third is, it put the properties into an entity that can focus singularly on making sure that the property gets turned around and put into the right kind of hands to make sure that it is part of a neighborhood and has the right kind of ownership. city'smajority of your budget is being spent on education. many instances of cities are spending money on education only to see little or no return on the investment. how are the education dollars being used and where are you succeeding where other cities have not? >> you are right. when you look at education, part of what you have to look at is the same things that we just talked about. pension and health care.

service-basedis a entity. when you look at the discretionary income that they have that we have to implement new programs, it is limited. nevertheless, we are doing that, looking at models that are succeeding, focusing on afterschool programming, summer programming, so that we can have a model that brings those services into the classroom, social services, mental health, physical help, but focuses and allows families to have their children in a caring, healthy environment so that they can learn. >> i have less than a minute left. last month, you requested federal officials establish a site in syracuse to house immigrant children awaiting deportation. what reaction have you had from the white house and the people of syracuse? what i did, the federal government had said one of the sites had passed the initial

assessment. i said to the president that we would welcome being a site for these children in the humanitarian crisis. the response from the city of syracuse has been positive. some negative response from others outside the community. some from inside the community. we think our history of a city, a welcoming city, showing that we are compassionate. if we can help solve the problem for these children's, we are going to be there and do that. the white house is very thankful for that and we continue to communicate with federal officials about whether there's going to be a need for this. >> the mayor of syracuse, new york. for having me. >> coming up, mind the gap. how tax shelters make global inequality even worse. ♪

>> the top 1% is rich beyond measure. the wealth of the super affluent is going uncounted. the findings are adding fuel to the debate over global inequality. olivia sterns has been looking into the reports. she joins me. what did you find? >> we have been lowballing how rich the really really rich are. is, these portions that they have today, the span multiple continents. they have assets all over the world. they deliberately hold huge subs of -- huge sums of money offshore. uis heldal wealth

offshore. 50% of the money from the gulf is held offshore. europe, then the u.s., the nation. >> where they storing this money? >> the usual suspects. accounts in the caribbean, switzerland. to shellnts are linked corporations that are registered in the likes of the british virgin islands. ownedhan 60% of foreign deposits in switzerland along to entities -- belong to entities registered in the british virgin islands, jersey, and the panama. >> you say entities. it depends on your definition of entities. what should be the takeaways? the reforms that the g20 tried to put in place, it does

not look like they have been working as well as people have been hoping. the conclusion is that all of the talk about what global in the equality was ameliorated between the follow the berlin wall and the great recession, we have not made that much progress. the big, simple take away is when you hear that the top 1% has 30% of global wealth, that is probably an understatement. >> thank you. is "on the markets." matt miller is standing by with the details. upi want to get you caught on stocks. a turnaround after gains across the board. positive u.s. jobs numbers. european markets turn negative with the ecb. i want to highlight some stocks. facebook, making another acquisition. they are buying software that

protects data. the purchase is part of a move to build up its defenses. you can see facebook shares are trading up. more "bottom line" after this break. ♪

>> welcome back to the second half-hour of "bottom line." let's check some of the top stories. the european stocks fell to the lowest level in more than 3.5 months. mario draghi warned a geopolitical risks in countries such as ukraine could hurt the economic recovery. they held their interest rate steady at 0.15%. president obama has signed bipartisan red -- legislation for veterans. it increases the number of the a medical facilities the president

said. foundsable conduct was that some v.a. facilities and he called the situation "outrageous." two car bombs killed at least six people and wounded four others in a mosque. he was being used as a shelter by shiite refugees. iraq'silitants seized largest dam, giving them control of water resources and access to the river that runs through the heart of baghdad. it is time for today's latin america report. argentina pasta at the fall is making huge headlines. we take a closer look at a key feature in the standoff. -- a key figure in the standoff. paul singer, how did he get involved with this? a hedge fund that does distressed debt investing. they buy debt of companies or

countries that is in distress or in default or bankruptcy. dealtry and get a better than what is usually offered in a restructuring or in a bankruptcy. buying argentine debt before the default. they say he bought after. said thatfund has they have bought before the default. they continue to buy the debt as the situation progressed and got worse. >> how successful the singer believe he has been? >> it is a question of how you define success. he has had the judgments in his favor, which means he has sued in new york and in other courts to have full repayment on the debt. you say, i am owed money on this and the judge says yes, you are. he has those that are in his favor and he asked to go and try to collect on those. he has this judgment that is

making headlines now, that is what pushed argentine into a default. that would also -- that was also in his favor. hasthe core standards, he one. the question is, has he been able to collect. not really. if you cannot collect on those, are you a winner? >> we know what the argentine government has been saying. they are using words like vulture and other things to describe mr. singer and those who they believe do not want to work with them on the debt situation. how those wall street view him? >> wall street sees him in different ways, depending on how they are involved in this investment. i think some of the folks involved in the argentina debacle may not see him so favorably because of what happened. to so many people for our story that we worked on and he is seen as a champion for creditors rights. to hisable to stick

morals through all of this and say, i -- this is a debt that is owed to me and you did not play by the rules and i am going to be you to that. the courts have agreed with him. a character on wall street that does something that could be beneficial to everybody else in the long run, if their rights are upheld. >> in the court of public opinion, this battle has become personal. >> on the argentine side. the rhetoric is pretty heated. absolutely. the make it seem like holdouts are just consisting of him. the reality is, there is a large group out there. a lot of them include retail investors. there are people trying to collect on their money. fund side, this is a battle that has been going on for so long, it is hard to

imagine it has not become personal. at the same time, in all of the letters that we have read and the features we have heard, it aboutinitely something what is being done that is right and what is being done that is wrong. you have been doing this since you were 12, the story will not go away. thank you. coming up, the back-to-school shopping season. which retailers are best prepared for the second-biggest sales event of the year. "bottom line" continues in just a moment. ♪

>> in the creative minds at taco bell are added again.

week, they open a new fast casual restaurant with an on its signature dish. we get a taste of what is to come. >> of the best of america and a taco. -- in a taco. >> you won't find a drive through, ground beef, or paper wrappers. >> in the middle one is a pulled pork taco. on the bottom, there is a sweet corn cake and we cover with the pulled pork and what bp child in your barbecue sauce on it. tacos.menu features 10 chick is a twist on buffalo wings. percenter, that is a lobster roll.

want to get laid? there is a hawaii style mahi-mahi. the beach shack matches up a day of the dead theme with the red white and blue color palette. to create a food truck you do not have to chase. u.s. taco is about a dining experience. the food is the environment in which you enjoy it in. >> you will not find the news. this is not the first push into the $34 billion fast casual market for taco bell's parent company. they have opened a higher and kfc --a higher and higher end kfc.

>> there was this other large demographic of folks that love mexican food but are not necessarily fast food users. we thought we could present a unique concept that has a different version of what else is going on in the market. with our focus on the consumer, retailers are gearing up for back-to-school shopping. i am joined now with a preview. retailers are ready. our shoppers ready? are they confident enough to open wallets and purses? >> it is always around the margin. it will be ok. we're not seeing a lot of good data points. some of the apparel guys seem to have a bump as we went through july. bunch ofen in a stores. they are getting set pretty well. it seems like walmart is being aggressive.

they are leaving me environment again. they seem to be leaving it. >> the last time you and i spoke, you like to get out of the office and you go into the stores and you see what is going on. you can tell us visually what you see. what is the energy like? >> i was in canada earlier this week. i was in stores the week before. are shopping and doing what they need. been conditioned to wait for sales. when you see the $.50 notebooks, they are flying off shelves. i feel like the consumer around holidays has been conditioned to wait and get the best price. i tend to see these surveys and

i am more focused directly than what the number is. my sense is it will be fine. things are getting a little better. you see it, you can feel it. when you start to get optimistic, it is like two steps forward and one step back. >> you are going to see the basic supplies will do well. electronics will be interesting. last year, a lot of tablets. we will see if new students will be buying used tablets. i think we are seeing a switch back to pc or laptop sent away from tablets as people do not find ---- >> we are seeing some of the big

to lower the kids into the stores. our discount going to be effective and what is that going to do to the retailer's bottom lines? become tunedhave and addicted to waiting out -- waiting for the discounts. >> if it is not a sale season, do they have all of this overhang? >> people wait closer to the holidays to buy. they know the longer -- it is a game of chicken. the consumer has been winning the last couple of years. i see no reason why they will not win again.

it will be a little bit scary. right at the last minute, you will see the droves come into the stores. on halloween, everybody does it on october 31. the south is going back to school this week. here, in his labor day. it tends to lag. >> the competition between the brick and mortar stores and the on-time retailers, how is e-commerce going to drive spending? >> they would do it through the convenience. shipping, is same-day googles and barnes & noble are trying to do same-day shipping. goto -- ere is convenience and there is price. price is getting harder to differentiate online. the retailers are not giving in on price. you are seeing gross margins come down. transparency is forcing pricing to come back. that is economics 101. a lot is coming back to service.

news thist in the week, hackers in russia stealing over one billion usernames and passwords. is that going to prompt more consumers to go into the brick and mortars because they are a little bit wary of shopping online? >> it is possible. i am fascinated when news like that seems obvious to you and i. like the target thing. you wonder how much of that filters down across the country. after target had the breach, people were afraid of target. they are coming back to target. they have gotten over it. inevitably, it scares me a little bit. it does. dowhat is mobile going to this year? how is that going to impact he back-to-school shopping? >> mobile is an extension. it does not necessarily create

more demand. over time, they are not creating demand. it shifted the delivery mechanism of the demand. with mobile, you will not create incremental demand, just shifts the mechanism of which you can buy. it is always a pleasure. thank you. up next, have you wondered how people decide how much to tip their cab driver? we will show you the latest data. ♪

>> in new york city released data about how much r iders are tipping cabbies. what are you seeing in this data? >> there are a lot of mysteries. to a lot of big-time behavioral economist who cannot

figure out what is happening. there are some trends. if you look at how much people ferrets, --with the people tip based on what the fare is. as you go from $10 to $100, people do not want to start giving 20%, so that starts to move down. what is weird, the range from $20 to $30, the percentages go up. iny give more money percentage terms. nobody can figure it out. it does not make any sense. why are they giving a higher percentage? withe taxi fares that end that? -- what is going on goes up and, it down. all of the bottoms are numbers that end in zero and five.

people are twice as likely to give no tip at all. if the pharisees defied dollars, ispared -- if the fare $64, compared to $65 -- if they they wouldat 64, make more because people give more money at 64. people get mad if they cannot get prices in the 50's, so they do not give any money. are new yorkers, are they good tippers? >> for the most part, they are. tot of the numbers in the 10 30% range, they are ok. no one can figure it out. no one's theory adds up to what is happening. >> stumbling out of an adult beverage facility in the wee

hours might have something to do with that. market oneck on the the other side of the break. ♪

>> you can get the latest information at the top of the hour. bloomberg.com and on bloomberg radio and streaming on your tablet. that does it for this edition of "bottom line." "on the markets" is next. i will see you tomorrow.

i am matt miller. let's get caught up on where stocks are trading. -- gains forgains a small part of the trading day early this morning, we have turned it down with european stocks. up half a percent on the s&p 500 index. a yieldes, we saw diversity in the two year and 10 year. they are all going down. people are rushing in to buy bonds. i am joined by steve wood. thank you for joining us. let's talk about europe. that is the driving force behind what we are seeing. ecb spook the markets today? >> they are confirming the weakness we are seeing in europe. we do not think the recession is going to revisit much of the eurozone, but the economies are fragile. we saw fragility and germany as well.

the european central bank is preparing the groundwork for a liquidity process. they are doing this because they see inflation is too low. taken one interest rate negative and lowered the other benchmark rates. the is a confirmation of weakness. >> investors are paying germany to lend money. confirming europe is sick because they are prescribing medicine in advance of problems he must see. what do you see for the full year as far as u.s. equity markets? the dow has he raced all of its gains for the year. the russell index that you manage and watch are still up. >> a small cap. it has had some pressure. we think has to do with valuation.

plus 32% in large-cap space last year. for a more normal return year. seven-ish percent makes sense. more like a confirmation year. fundamentals need to come in. most importantly, revenue fundamentals need to come in and justify the returns we saw last year. is equities the only game in town? if you have to pay the bundesbank to hold your cash and you are getting almost nothing herein treasuries, where are you going to go for yield? >> that is the squeeze play. investors need to be versed in that. very closebeing kept to zero. we will see it happen quickly in the bank of japan. central banks are telling investors, if you are they are going

to drive your returns negative. they're going to force investors up the risk her. -- risk curve. that multi-acid picture, figuring out where the return is, they will have to be patient. >> thank you for joining us. every 26 andarkets 56. stay with us. ♪

welcome to the most important hour of the session. we have 60 minutes until the closing bell. bear on thebull and street are actually here on said today ready to battle over where stocks are heading next. i am trish regan. "street smart" starts now. ok, today ecb president mario draghi points to the crisis in ukraine to adding risk to a fragile economy. i'm going to get reaction from th