this is "bottom line." the 72 hour cease-fire in gaza news in and. then and lord of compost is killed in a plane crash. and a superfast car that can go nearly 300 miles per hour. we have full coverage of the stock sand stories making headlines today.

peter cook looks at president obama's delicate balance on corporate inversions. and profiling a major manufacturer based on the border with gaza. first, palestinian negotiators are considering an egyptian proposal to end the month-long israeli-hamas or. -- war. into effectuce went on sunday, israel has halted military operations in the coastal territory and gaza militants have stopped firing rockets. dome system has protected them but local companies don't seem to have stayed quite some safe. around 3200 rockets were fired out of the gaza strip over

the past two weeks. with residents of southern israel often the intended target. the iron down system may protect most people but the impact is still damaging to local business. >> it is not easy. you can see the parts. if it it's you, it kills you. >> he lives a 10-7 rocket flight from the gaza strip. he just returned to the company's main plant where his colleagues have been struggling offulfill the firm's daily" -- daily quilt quota. >> five or six times a day, you run to the bomb shelter. >> one consequence of the conflict is that orders are following. sales dropped about 30% compared to last july.

they are looking to spend $2 million to renovate this old factory space. but there is some unusual factors, including security, that you have to consider. the military can take over your office ability -- office building. and then there is the uncertainty. the at thew, with payments, tax payments, it is quite severe. industry in has played an important role. despite keeping his covenant close to gaza, politics also play a role in his decisions. >> on the other end, it is the long-term view about the way israel should look like. >> for safety reasons, goldstein costs andhifts while

staff have risen. it provides a risk premium. wife, for the first time, did ask me what are we doing here? why can't we move? and it's hard. >> what did you say to her? >> you don't run away from your home every time it gets hard. so give it another go. what kind of measures are these companies taking to protect their staff? how does that impact to their productivity and profitability? >> one of the major things is bomb shelters. you have to be within 10 to 15 seconds of them in israel. that money could be spent elsewhere. these companies have been having

to find ways to protect their ploys, sometimes sending them -- their employees, sometimes sending them home early. shiftsve been switching so that people have less time on the road and more time under the shelter of the building at work. peoplecustomers ordinary or the government in israel? are they doing anything to support these businesses? .> israeli customers when you talk about plastic manufacturing, they are taking early and paying early, allowing them to take larger orders than usual. the israeli government is trained to reimburse some of these businesses. that is still under negotiation. withesses were meeting business leaders in that part of israel to see what can be done in the future. >> thanks. he will continue to follow this story.

he will join us tomorrow. bym joined from washington michelle gunn. she was a middle east specialist at the state department. >> thanks for having me. >> the israeli foreign minister said in an interview today israel cannot stand what he calls a war of attrition. getontinued -- unless we rid of hamas, we cannot progress to a reasonable settlement, settlement front or the diplomatic front. >> cease-fire talks have been grinding on in cairo. it's not clear to me whether there will be an actual cease-fire agreement or whether israel will do something like it did in 2009 and basically unilaterally withdraw. agreement,re is an what we are hearing from cairo,

bits and pieces of what might be in that agreement, did not include anything about the demilitarization of hamas or somehow ousting hamas from gaza. it is clear that that is not going to be the outcome of this conflict. rather there would be some limited agreements about stopping the exchange of rockets and perhaps some limited opening of the borders of gaza. >> i'm glad you brought that up. of the israelig and egyptian blockade of gaza, that is reportedly part of this plan to end the violence. what would that mean for the gaza economy and for israel's security? >> from what we are hearing, what the egyptians are proposing is a two-phase agreement. in the first phase, there would be an opening to allow goods in israeliof gaza on the

side of the border and with the egyptian border. discussinge also opening the seaport and the airport and gaza. but that is only a promise. to be honest with you, probably the palestinian negotiators see that that might never be fulfilled and therefore there would be little impact. there is some limited rebuilding other a pair -- rebuilding and repair of the damage that has been done. that italestinians say would jumpstart gaza's economy. >israel would say that, unless hamas puts down its guns, there will not the sea access. positiveld have a effect on gaza's economy, but i

agree that it is unlikely to come through. the only way to disarm hamas is two ways, either it is utterly diseased -- motherly -- utterly hamas decides to give up. it does not look like either his or to happen. "israelis are justified in demanding security and acceptance in the region, but that is only half the equation. d,ding palestinian refugeehoo iege is the and s other." tothere will be an attempt broaden this issue to say what is needed here is not only an the gaza end to conflict, but renegotiations between israel and the palestinians and the settlement

of the long-standing conflict. but i don't think there is much receptivity on that in israel right now. the palestinian authority, the secular palestinian leadership perhaps will be playing a greater role in gaza. but it will not displace hamas. it will be playing that role alongside hamas. thank you for your time and your expertise. >> it was a pleasure. >> we are following eduardo plane who was killed in a crash in the southeastern city of santos. a total of nine people are said to have died. was a former governor and a former science and technology minister. a recent poll put him in third place.

just over seven weeks to go until the election. has declaredsseff three days of mourning. coming up, the bank of england issues its inflation report. why it lowered its forecast for wage growth and raised its four-year in economic outlook.

pledgedank of england that it will not rush to raise rates. danny blanchflower is an economics professor at dartmouth college and former member of the bank of england monetary policy committee. good to have you on the broadcast. >> thank you. >> is the bank of england being too cautious or is the drop in

the wage growth in the u.k. for the first time since the spring of 2009 a wake up call? >> i think it is a wake up call in many ways. theously, like the fed, bank said it will follow the data. but earlier in the year, it was focused on they unemployment rate. it saw the unemployment rate falling very fast and said, let's slack off. wage growth was going to be wasn't it -- be positive. but since then, we have had negative nominal wage growth. so they have had to change their view. there is more slack in the market than they thought. that puts aside the possibility of any rate rise. they are watching wages and wage growth is nowhere. >> how do you explain the contrast between the u.k.'s weak wage growth and strengthening

labor market? is that wethe answer are seeing a fall in the unemployment rate is somewhere around 6.5% or so. we have two big things going on. have another 2% on top of that that we call underemployed. there is a huge number of people flowing into the u.k. from eastern europe. improve, then a new flow of workers comes in. this is globalization come if you like, but there's lots of slack in the labor market. i think the bank of england underestimated that. england governor mark carney said increases in bankrate, when they come, are likely to be gradual and limited. and he added that is an expectation, not a promise.

does raise rates, could the low-wage environment stall the recovery? the answer to that of course is yes and the low-wage environment is something that is holding them back. but there is something that the bdm act is to understand. basic -- that americans don't understand. basically, payments on mortgages will rise. currently, people are paying 2% on a mortgage. so the moment that the bank of england raises rates, people's mortgages will rise and their rate -- their wages remain low. that will have a big effect on default and spending. reticent to raise rates, especially before the fed does.

it makes no sense at all. the bank of england also lowered its estimate for the current medium-term equilibrium unemployment rate to about 5.5%. the previous estimate was about 6.25%. our minimum wage requirements in the u.k. reducing demand for labor? >> i don't think there is much evidence that the minimum wage actually reduces the demand for labor. there is work done in the united states that is matched by working the u.k.. gnome wagel that the is at, there hasn't been much impact. ,- that the minimum wage is at there hasn't been much impact. there is a lot of people who would like jobs and they are prepared to take them at low wage rates. i don't think you can really argue that minimum wage is what is doing it when you have this

enormous flow, and that is the thing pushing down on wages. i don't think it is the minimum wage. >> talk to me about the challenges the u.k. faces, the global economic recovery. >> it has a big problem. if you look back at the shop we the economy needed to rebalance the way for financial services towards exports. the worry is what do you do when the next shop comes along -- next shock comes along. that the economy has not rebalanced and it will have a big shock. danny, always good to have

you on the broadcast. >> good to see you, mark. >> top obama donors may be facing some harsh tax realities if the president gets his way.

>> president has been bashing u.s. companies for overseas merger deals to reduce their u.s. tax bills. but some of the people involved in those deals are not foreign to the president. they are some of his donors. some of the president's biggest backers don't share his aversion to corporate inversions. got a bloomberg review that shows that more than 20 of

the presidents past donors are engaged in some way in inversion transactions, either as advisers on these deals, executives at some of the companies involved, or as board members and that is complicating his push to close the inversion loophole. the president has openly criticized these deals where companies merge with smaller overseas firms so they can claim a foreign tax address. he has pushed congress to change the law. supporters --t the fact that supporters are on this list are putting the white house on the defensive. mylan ceo might be the most

visible democratic. she done in $1000 to the president's campaign in 2008. adobe ceo also in the aversion makes -- the inversion mix. the biggest inversion deal in history. the deal did not get done. but to complicate things, he gave 39,000 to democrats. he also is serving on the president's management advisory board. again, it complicates the picture for the president. there are other big names on this list and is undercutting his argument for this bush. >> what has -- this push. >> what has the white house response been? plane president has no right now to return donations from any of these people but he is not stopping his push to us. the inversion loophole. minimumident at a

should get credit for it taking on some of his supporters on this issue. there are republican donors also involved in the inversion game. there are not as many republicans pushing to close this inversion loophole as the president has in the last few weeks. >> thank you. bloomberg television is "on the markets." julie hyman is standing by with the numbers. >> we do have a rally going on today despite the fact that retail sales came lower than estimated. that means the fed does not have to come out and raise rates sooner than anticipated. the numbers coming in at macy's below analyst estimates by six cents when it comes to earnings

and cutting comparable sales forecast for the whole year. it continues to cut its prices in order to drive traffic. more "on the markets" in 30 minutes.

>> welcome back to the second half-hour of "bottom line." thank you for staying with us. iraqi prime minister nouri al-maliki says he will not relinquish power until a court rules on what he calls a constitutional violation by the president to replace him. but maladie is growing increasingly isolated with iraqi politicians and much of the international community. the number of people killed in eastern ukraine appears to have doubled in the last two weeks

according to the united nations human rights office which puts the death toll at more than 2000. intensified as ukrainian government forces close in on the remaining rebel strongholds. movie fans around the world are remembering lauren bacall. she died in new york yesterday. she was 89. charmed fans as well as actor humphrey bogart who she married after they worked together in the film "to have and have not." tonyes later, she won two awards for her work on broadway. tonight, charlie rose on bloomberg is remembering robin williams, featuring some of the most memorable moments in six hours of television they did together. williams talks about becoming a comedian. >> the first year of college. i knew i had a slight tendency that way.

[laughter] what are you doing? performing. improvisational theater class and there is something so freeing that i flunked out of my science course. [laughter] do that thing that i do well now. in the end, you must suppose that charlie rose knows. [laughter] that was the beginning. it's been pretty much from then on. >> is there one great thing you want to do? satisfactionre from this kind of thing or do you, in the end, get the most

satisfaction when you are out there it with an audience? >> its equal in different ways. it's like comparing hang gliding and spelunking. intimate how this piece is. when you work with people at that intimate level among its different. it gives me the same satisfaction. the performing live, it is extraordinary. it is cheaper than prozac. [laughter] and it is an amazing kind of fulfillment. when you are performing live then you are really creating. is this old stuff her new -- stuff for new? -- is this old stuff or new? >> do you sit down and write this stuff at all? no, it's free

associates. that sounds like a law firm. as whatever your mother tells you. [laughter] the whole crew noticing how matt damon was sitting there in rap attention. much more tonight at 8:00 and 10:00 :00 new york time right here on bloomberg television. coming up, objections to detroit's accuracy lance. 5 -- bankruptcy plans.

>> it is time for today's latin

america report. a judge has ruled all singer -- made search the deserts of nevada for some of the money. he asked a las vegas were to order more than 120 companies in nevada to turn over information about assets belonging to an argentine businessman accused of embezzling $65 million in government contracts. peakedade-long quest last month when the company went into default for the second time in 13 years. a federal judge in new york

board argentina on paying -- from paying on restructured debt. isajor detroit creditor objecting to the city's bankruptcy plan. guarantee believes the plan to reduce billions in debt should be scrapped before the start of next week's trial. plan? wrong with the >> simply, the plan is not fair to creditors, particularly to financial creditors like my client, paying sincora nothing when it pays other creditors in the case essentially 100 cents on the dollar. is "theettlement with -- f mediators

this isg to sincora, not just about a disagreement on the merits of the case. do you believe that the integrity of this process has been corrupted? >> we have a substantial concern about the process. there was a mediation process implemented at the beginning of the case and the public statements of the mediators have been to the effect that their therest is in protecting art of the city and the city's pensioners. sympathetic causes, but the american rule of law provide that pensioners and other clients need to be treated the same way. judge saidbankruptcy anything to you or your clients in open court about this? did he express any similar concerns? >> know, but that is the topic for the confirmation hearing coming up x week.

>> the terms of the so-called grand bargain deal include transferring the detroit institute of arts to returnable trust. the detroit press noticed last week that funds would funnel into city workers pensions. is this not a good deal for municipal workers going forward? >> it is a very good deal except for the fact that the whole reason my client has a claim in this case is we helped put $1.4 billion into the pension funds of the city of detroit in number of years ago. >> that was under the administration of the former mayor. >> right. you want to encourage financial players to help cities out, help their pension problems when these things go awry, and this situation, a few give them no claim in a recovery, you will stop people from being willing to help cities in the future. >> what about this talk that

perhaps maybe what happened -- i believe it was back in 2005 with the 1.4 billion dollars, $1.5 billion, that maybe that may not have been legal or legitimate? there have and concerns that perhaps that should not have taken place in the first place. >> yes, some people raise that. our view is that, it was either the jim demint, which is our view, or if it was not, -- either -- it was either legitimate, which is our view, or it was not and the city should give the money back. >> the voters voted overwhelmingly on the retirement deal. why would these retired workers support the settlement? >> because the settlement takes the money from removing the art from the city's balance sheet and give the money to the pensioners. >> we try to get comments from

the city but so far we were unable to get a response. what is your sense of how the new administration of detroit is handling this? have they been at least willing concerns?me of your we are dealing mostly with the emergency manager, not with the mayor's office. >> you are quoted as saying that you have concerns the bankruptcy case has been made to look like a fight between wall street and the city of detroit. how so? been quotedhas calling us the hounds of wall street. that is inappropriate, especially since the only reason why we are a creditor here is because we put money into the city's pension fund. >> the judge has issued a gag order saying stop making these

war comments. is it the contention that this plan should be null and void, that it should be scrapped and you should start from the beginning again? wides, although we remain open to a consensual resolution. how would june define a consensual settlement? >> something that is fair to other creditors. >> in your position, it is hard to look through a crystal ball. what are you expecting when this goes to court? the rule ofpecting law in america to apply and are arguments on how the plan is not able to be approved because of its deficiencies to be upheld either by the accuracy court or

-- the bankruptcy court or an appellate court. syncorarepresents guarantee. thank you for your time. do you have the need for speed? a tour ofke you on the car that goes nearly 300 miles per hour.

>> carmaker hennessy just announced that its new car will be the fastest car ever made at 300 miles per hour. recently, hennessy, maker of ludicrously fast cars, announced whichw model the venom f5 is expected to have a top speed of 290 miles an hour. here's my question. who is buying this car? i get it. there has always been an arms race among automakers for fastest top speed. be fasterenom f5 will than its predecessor.

seriously, who in the universe needs a car that goes this fast? i am not even talking about speed limits. these cars are faster than the horrors in nascar and formula one and those are driven by professionals. with crazy speed comes even more craziness. take the view got a -- take the bugati. at top speed, it has a few economy of two miles per gallon. if you decide to go all out in with a full tank of gas, that tank will be empty in eight minutes. hennessy had to borrow a landing strip from nasa. it was the only place long enough. all of this is lunacy. what makes it even crazier is theoretical lunacy. do you really think that anybody

who buys one of these cars will take it to the limit? people who buy buicks don't take it to the limit. this is mine is faster than yours. it's certainly not about money because these people are as rich as rockefeller. what exactly do they have to prove? >> "street smart" with trish regan starts at the top of the hour. alibaba. >> we will talk about alibaba versus $.10. cent.rsus tens there are a lot of questions surrounding ali baba's ipo. this will be the largest probably that the u.s. has ever seen. again, what is the competitive .andscape like >> you will be in atlantic city tomorrow. >> yes.

i've been practicing my blackjack. we are looking at the challenges that atlantic city is facing right now. as you know, a lot of problems. you've got a number of casinos that are closing down. revel is just the latest announcing they will be closing next month. a lot of jobs are being lost their and a question whether this is a place that will really survive. the title of the show and our coverage of the city is "atlantic city: lights out." it could be not just tough for the casinos, but for the community at large. >> there are so many places to gamble in the united states right now. you don't have to go to atlantic city anymore. while vegas was able to turn itself into a destination, a vacation spot with many more things to offer, atlantic city really did not go enough down that path. >> we will look for that tomorrow and look for you at

"street smart" at the top of the hour. stay with us. another check of the markets is coming.

>> get the latest headlines at the top of the hour. for this edition of "bottom line." on the markets is next. i will see you tomorrow. 56 fast and the hour which means bloomberg is on the markets. stocks are trading higher, hanging onto bigger gains. being led higher by. talk about potential acquisitions and biotech. the nasdaq is the biggest gainer, up nearly 1%.

look at treasuries as well. money flowing into stocks today. we are seeing some buying of treasuries, too, even as the yields come down. we had to make a numbing data coming quitting retail sales that came in weaker than estimated. looks like people are buying treasuries on the news. lastly, we saw a big shift in investment in exchange often traded funds -- exchange-traded funds. joe, you would think that this would show people are more optimistic may be about the economy, right? >> i think that is exactly what we are seeing. the energy group is one that benefits from an uptick in expectations for the economy. at the same time, utilities a defensive sector. some people are not scared or seeing some macroeconomic headlines that my cause worry. we are lucky to shift that into

more risk-embracing energy stocks. >> utilities have been the place to go for yield. it is a group that has traditionally high dividend yield. it could be people are thinking the fed, when they raise the rates, they might be able to get their yield from bob's as opposed to the dividends paid out by utilities. that tends to be the big appealing factors. when you are worried about stuff, just go for the safe bet. so i think that is something that is definitely in play. in general, we see a big shakeup in the etf landscape. last week, we saw a record inflows into the spider etf. i think that benefited more by really strong earnings. just in general, people are looking to put money to work right now. >> when you look around at groups that are more cyclical, more dependent on an economic recovery like energy, are we

seeing more flows into groups like that? >> yes, consumer discretionary has seen a big uptick as well. if people have a little disposable income, they might buy the baghdad had their eye on for so long. that is definitely -- by that bag they have had their eye on for so long. that is definitely good. >> we will get retail earnings in the next couple of days. anything that might be using this energy investment? >> you have to look at what is going on in the middle east. people are fearful of rising tensions. push.ould energy prices up if you are looking to put gas in your car, that hurts you, but the people in the energy stocks benefit. >> we will see if we still see these patterns in a couple of weeks. we will have more on the markets later. "street smart" is next.

>> hello, and welcome to the most important session. speculation the fed will raise rates sooner than anticipated. -- street smart starts now. coming up today, the white house considers using ground troops to rescue refugees in iraq while the country's prime minister desperately clings to power. on wall street threatening to take pershing