>> from bloomberg world headquarters in new york, i am mark crumpton. this is "bottom line." today, president obama meets with ukrainian president petro poroshenko. and we will have a sneak peek at jaguars new class. to our viewers here in the united states and those of you joining us from around the world, welcome. we have the stocks send stories

making headlines. peter cook has the fallout from the fed meeting and news conference. thee hyman is monitoring alibaba ipo. asked forpresident u.s. military aid. the details of this aid package that president poroshenko was seeking? a jointnt before session of congress making an emotional appeal, saying we appreciate the help we have already gotten from the american government, but frankly speaking, we will not win a war with blankets and night vision goggles. we need you to's debt but their game and bring into military assistance. -- we need you to step up your game and bring in military assistance. approved annt also aid package for equipment that the ukrainians made. >> i'm sure it's more than just a photo op.

peoplet is underscoring in the united states and for the audience in russia and in kiev that the united states is 100% behind this democrat lee elected government and it will be there just like europe will be there. for them. the reason it is important is because, watching back in kiev, it is a morale booster for people to see their president in the white house greeted by a joint session of congress. it gives them the feeling that they can go forward with this democratic experiment and will have support from washington. >> what is the u.s. prepared to do to help the ukraine? >> i think we are going forward with economic assistance and democracy-the thing assistance we have been doing -- democracy-building assistance we have been doing all along. she will be going there to talk about economic reform and how to get their economy and shape. stopping short of

lethal assistance. there is no amount of military assistance that we can give them that will beat russia's army. at this point, we are still trying to push for diplomatic way, economicin a warfare, sanctions. >> it is one thing to talk about the economy, but it is another thing to realize that this war has ravaged certain sections of ukraine. they will need a lot of money for infrastructure improvement. is the international community prepared to step up and help them? >> you are right, this will be rebuilding and restructuring in a high-level guy if those -- level, even if those areas come back to ukrainian control. we do not know what will end up being in control of the separatists and russia the control of key of -- of kiev. others have said they're willing to put their money where their mouth is to help ukraine. >> sanctions, have they kicked in yet? are they working?

>> all the oil companies were to stop their arctic shell and deep sea drilling. we know the company that is most immediately affected is exxon. the point of the sanctions is to pressure putin into changing his policy. that hasn't happened but it is taking a toll on russia's economy. >> you talked about pressuring him in changing his policy. a largers this as question of the project of putinism. >> which is? >> it seems like a re-creation of the old soviet union with a sort of combo-proto-, capitalistic model but with a lot of crony capitalism. if we start denying him the money he gets from hydrocarbons, which is a huge portion of government revenue, once that decreases due to sanctions, he will my have the money to fund the putinist project going forward.

this is pride and he is not willing to pull back from the brink yet. >> thank you so much. ukraine is coming up. we will bring in john hurt, former u.s. ambassador to ukraine. he is the eurasia senate director at the atlantic center. that is coming up in 35 minutes. interesting day overseas. in scotland, voters are deciding whether to seek independence from the u.k. it is a ballot that may spell the end of a 300-year-old union that once dominated the world from america to australia and triggered a new era of self-determination across europe. polling stations are open across europe for the four .3 million strong electorate. it is the culmination of almost two years of competing arguments over the viability of an independent scotland, its economic well-being, currency, and international standing. the result will be announced in edinburgh tomorrow. >investors liked what they heard

from fed chair janet yellen. for news conference reaffirmed the fed is not moving up its timetable for interest-rate increases despite signs of an improving economy. peter cook was at janet yellen's news conference. he joins us now with more. there was a mixed message from the fed, correct? >> there was a mixed message. said things are still not healthy enough to put rate hikes on the horizon just yet. yet almost every other aspect of this meeting basically signal normalization is on the way, probably sooner than expected. she and her colleagues committed to ending their bond buying next october. they put on paper the specific tools areas, primarily the interest rate on excess reserves. and their own forecast shows that they now see interest rates at a higher level at the end of next year than they did in june. that means they have to get moving at some point.

notion that the guidance is incompetent somewhere, but i think yesterday proves it is yellen's voice that matters most. we are seeing that in the markets and she is approaching normalization very cautiously. >> when do they start raising rates? it seems the consensus is the middle of next year. >> it is the digital in dollar nuestion -- it is the gajillio dollar question. she diluted her definition of considerable time. we know that 14 of 17 fed policymakers think it will happen next year. but when exactly remains a mystery. some economists think it is march. others see move closer to midyear. probably sometime next summer. i think it will be the most

advertised hike in interest you -- interest rates in my 57 years. sometime next summer, could be spring, could befall, but that is sort of the window. it will be exceedingly well advertised. i think they fed would like to have a marketplace have a discounted by the time they do it. >> bottom line, mark mcauley says yellen gave herself a disability yesterday through that timetable. she did not commit yourself to anything, left the fed open to changes depending on what happens in the u.s. economy. >> what about the exit strategy plan? did you hear any curveballs yesterday? the paper isw in consistent with what we have seen in the minutes, what we heard from yellen previously. no real curveballs. one thing that did weigh on markets is the notion that they will change depending on economic data. i have such ability much in the way with the bond buying program as well.

ebola outbreakhe in west africa. i will speak with an who assist with the centers for disease control. that interview and more when bottom line on bloomberg television continues in just a moment. ♪

>> welcome back. the world health organization reported today, as of september

14, ebola cases in west africa totaled more than 5300 and there were more than 2600 deaths. dala recently spent 25 days assisting the cdc's ebola outbreak efforts in sierra leone. welcome to bottom line. >> thank you. >> how is the ebola virus contracted. what are the signs and what is the incubation period? usuallybola virus is contracted through direct contact, either through body fluids, blood, or items that have been infected, like needles. through allcted these methods. but there has been no evidence of respiratory transmission.

contraction was 21 days. it is 10 days. it has high fever, severe headache, diarrhea, vomiting, weakness. about 45% of cases demonstrate hemorrhagic symptoms. >> you were on the ground in sierra leone. can you confirm reports of people are dying on the streets because there is either a lack of mental resources or because they could not reach a treatment center? >> in sierra leone, we did not see that many people dying in the street. but we were receiving information from the community that there were unexplained dead in the community. but there is a huge issue with treatment particularly because there are not adequate treatment facilities in the country.

there are maybe two or three treatment centers with -- for the whole country with limited resources. resources are limited and you want the health care providers -- they are very few there. it is a challenging issue. the humantion to toll, there is an economic toll. did you and your team have enough resources to help ebola victims. what do you think the international community should be doing in terms of allocating funds and additional resources to combat the spread of the virus? we were there to help them with preventive aspect, mostly with their something system. we were not involved in patient care. we implemented the database and train people to use the data bess and train -- the data

base. help on expertise and local resources because they don't have all those facilities and expertise. i think that would be one key part for international partners to provide help with. , we have learned that sierra leone's government has been fomented a curfew. people are forced to stay home in an attempt to contain the virus here in -- virus. what is your reaction to the curfew? -- to goo it to help house to house and look for ebola persons, there have been incidents where people are afraid of coming out, going to the health care facilities because there is a huge stigma. what's your -- once you are tagged with ebola, your

community members do not want to be with you. because of the lack of facilities and treatments, people are afraid of going to health care facilities. that is the reason they are hiding in the communities and going away from the health care facilities, running away from the health care facilities. situation, ilocal think that in some point in time, it is required because people are hiding and infecting more other people in the community. so you need to find out these people and isolate them. i think the government is trying to do its best to get more people out, prevent more people. >> all right. working withrala the department of public health recently back from sierra leone where there is an ebola outbreak. dr. koirala, think you for your time. we appreciate it. questec you for having me. >> next, -- >> thank you for

having me. >> next, buffet, by fine, bloomberg, and the governor of michigan. that story when "bottom line" continues in a moment. ♪

we are only a few weeks away from the debut of our new bloomberg out this broadcast "with all the respect." launch monday, october 6 at 5 p.m. new york time only on --omberg erratum today, the bloomberg. today, goldman sachs initiative and the city of detroit celebrated the graduation of the most recent business leaders to come out of that program. the initiative announced a $20 million investment aimed at unlocking growth in michigan.

erik schatzker was in detroit to talk about growth in the city and the u.s. with an all-star panel of guests. berkshire hathaway ceo warren bought fired, lloyd blankfein, bloomberg lp founder michael bloomberg, and michigan governor rick snyder. here is a portion of their discussion. theast week, we had intelligent transport congress right here. of the future for mobility and transportation, 10,000 people, 60 countries represented. it really show that the center of that is here in terms of opportunities. it gets back to manufacturing, to making prompt -- to making products, to making them smarter. you want to see the highest i.t. out there, the to a vehicle. we need to courage -- we need to encourage young people and parents that making things is a good thing still and you can be at their forefront of the most

exciting technologies in the world. that is a great implement opportunity, for engineers and also for the skilled trade. production forhe today, you are a skilled trade person. and we have a shortage in this country in terms of skilled trades people. moving forward in the future is to lead the country in helping make the skilled trades grow in michigan because it will be a competitive economic advantage. >> it is not just a matter of adding water and a gross. -- anddesk and a grows it grows. somee end of the day, people you say yes to and some people you say no to and sometimes you bite your fingernails to the nut and hope it works out but that is also what the financial system does. everything sounds great but not everything warns being financed -- lawrencwarrants being financ. >> do you share my concern of the door does -- the distorted

impact of low interest rates? you are famously cautious when it comes to high-tech. but there is so much face in the promise of technology. some might even say blind faith. almostre going to sell 17 million cars in this country this year. that is enormous. by $35,000 or $45,000. america comes back. it always comes back. frankly, i think it has done better than i might have expected in the following 2009. we were having a meltdown because of the actions of a few people. they got the country moving. they got the locomotive back on the tracks. it started from a good start but it has moved a long way and he

continues to move. >> if you look back at the in americanecord, history, the post-depression era, what could we be on the cusp of? >> we are on the cusp of continuous growth. we have been having that now for five years. had 16 months or so -- we have 60 months or so of growth. >> that was hathaway chairman warm profit -- warren buffett, rick snyder, and michael bloomberg speaking with erik schatzker in detroit. tonight, how china's booming luxury market could mean more business for alibaba. don't miss two special programs, a documentary, "crocodile in the yangtze, the alibaba story." for a bloomberg west special look at alibaba's business only here on bloomberg.

bloomberg is on the markets. here's julie hyman. >> let's take a look at where stocks broadly are trading right now. withe seeing a rally financials leading the way after economic data coming putting jobless claims, beat estimates this morning. people looking at the fed yesterday and receiving the commentary as dovish. one individual stock, we are watching ali baba. shares are expected to price after the close today. interest in those shares so high that the company has already raised is price range to $68 a share. depending on where those shares price, it looks like it will be the biggest ipo in history. of course, we do not know what ali baba will do. there is a lot of demand. but we can look at yahoo! which .wns a share of alibaba it will be selling part of that

stake but those shares are falling ahead of that pricing. stay with bloomberg for complete coverage of that alibaba ipo. we will be back on the markets in 30 minutes and you will be back with more "bottom line" after the break. ♪

>> welcome back to the second half-hour of "bottom line" on bloomberg. it is time now for the commodities report. su keenan joins me with the details. >> that stronger dollar cutting into the appeal of commodities, energy and metals futures dropping across-the-board. and a policy change in china has cotton futures under pressure in a very big way. you have west texas intermediate trading here in new york, brent crude in europe taking a tumble as the dollar reached a six-year high against the yen. this is on the back of the fed

statement yesterday. the focus has been on interest rates and that has pushed the dollar higher. if it weren't for the trouble in libya and nigeria where there is an oil worker strike, oil would be much lower. metals also dropping across-the-board. gold off the-- lows of the day. plan on taking the biggest losses. the housing market is sputtering here and in the u.s. gold is at a eight-month low. >> china is driving today's cotton trade. >> it is the world's biggest con user. the word that it is scrapping a ,tock riling -- a stockpile policy change is beresford carton. suite -- policy change is bearish for cotton.

got one of the cotton futures up there but the current contract out more than 4.5%. chicago fleet has tumbled 24% in the past year due to those forecasts for a rolled outcrop. you have corn and wheat both not looking good with this kind of strong crop yield. >> thank you. coming up, citigroup challenges a u.s. court order over distribute money to argentina's creditors. ♪

>> ukraine's president petro poroshenko is in washington. he asked the u.s. congress and president obama for more support against russian aggression. the ambassador to ukraine and served for 31 years as a foreign services

officer in the u.s. state department. he is now the director of the atlantic council's eurasia division. welcome to bottom line. >> my pleasure. president poroshenko thanks in the united states for the nonlethal equipment provided to his country but he cautioned "blankets and night vision goggles are important but one cannot win a war with a blanket." is it time for the u.s. to start providing the ukrainian military with legal aid? >> it is -- with lethal aid? >> it is well past time. antiaircraft weapons, antimissile weapons -- russia is conducting a war against ukraine and this will help ukraine defend his territory from aggression. >> if we had provided that lethal assistance, would that not open the theater of conflict? wuld we have a water war -- a ider war?

>> if you had ukraine better able to fight its battles, that would inflict a heavier cost on aggression.r his he is hiding from the russian people that russian troops are fighting in ukraine. is presidentge portion goes -- is present poroshenko bringing to president obama? if he knows that the west is solidly behind ukraine as ukraine defend its territorial integrity and his sovereignty from a war that russia has been conducting for the last five months. >> had the international citations against russia worked? have they had the desired effect on russia's economy? >> the sanctions have been useful. they would be much more useful if they were delivered in a timely fashion. the west would make a threat and

then, after russia would do something that crossed the red line, he would not deliver on that threat for several weeks. that would persuade mr. putin that the west is weak. that has whet his appetite to conduct a christian. >> i would -- conduct aggression. >> how would you define timing? seized byia would not the end of june, sanctions would be opposed. rebels shot down the airline three weeks later. sanctions should have been delivered when we said they were going to be delivered. locatione's geographic gives it strategic and economic importance, not just for the region, but for europe. a sizable amount of russian oil supply to europe goes through pipelines that run through ukraine. how has this energy component impacted global markets? has point of fact, ukraine

been a reliable conduit of russian oil and gas to europe. ability toused its send substantial quantities of gas and oil to ukraine and europe as a weapon against ukraine. but of course, the turmoil ukraine could in fact lead to a cut off and supplies. ukraine has been meticulous in not to let that happen in this crisis. but as russian aggression increases, this could be an outcome. >> in your opinion, what is president putin hoping to accomplish? is his move intended to make sure ukraine finds it more difficult to run the european union? >> he wants to make sure that ukraine remains in the russian sphere of influence. is beyond ukraine pen he said that he would protect not just ethnic russians but russian speakers wherever they reside. baltic states and

poland and for his excimer. his territory goes beyond ukraine. the danger we are facing is not just a danger to ukraine, but too many states. natonited states and our allies need to understand this. our policy response has not been strong enough. >> ukraine needs money and a lot of it. as the situation with russia pushed ukraine to the brink of default? >> the situation is dire. they concluded an economic deal with the imf. but since russia has escalated its war against ukraine in the meantime, the economic circumstance becomes even more difficult. that said, the priority is to help ukraine defend its territory from kremlin's aggression. herbst now director of the atlantic council eurasia center joining us from washington.

mr. ambassador, it is a privilege to have you on. thank you for your time. >> thank you. past, anfrom the age-old classic. inside jaguar's new old car. ♪

latinis time for today's america report. citibank is challenging a u.s. court order permitting it to forward interest pants on engine interest payments on argentine bonds. what is the banks main argument? >> citibank isn't just a bank in the u.s.. it is also a bank in argentina, one of the biggest banks in argentina. it has been in a hundred years witht has to comply argentine law, too. it is a legal pickle. if i am abiding by u.s. law, i am breaking argentine law.

if i am abiding by argentine law, i am breaking u.s. law. they wereve that, if to break argentine law by comply with the u.s. court, they are at risk of not only lawsuits in the u.s. but bank officials could go to jail and citibank could potentially be nationalized. >> tell me about this $5 million interest payment due at the end of this month. >> argentina is supposed to be making payments to both structure bondholders and holders of defaulted debt from 2001. the country refuses to do that. as a result, the interest payments that it makes on restructured bonds isn't allowed to be passed on. with citibank's argument, it holds bonds that are governed by argentine law, not u.s. law. the entire payment process is done in argentina. they say these are completely different vase and should not be regulated by u.s. law and they should be able to pass them along or they are at risk of

legal ramifications in argentina. >> it is claiming that it has to do this because they would face the bank and its executives possible civil and criminal penalties. >> precisely. once the money is put into citibank yard and he now, it is property -- citibank argentina, it is property of the bondholders. by not passing them and allow, they could be sued by all sides. they are scared that the argentine government could even potentially nationalize the bank. they nationalized a spanish oil company in 2012. this is a tricky country to operate in. >> the july 30 of fault, that was triggered when argentina refused to make a payment, the $530 million interest payment on its restructured debt. the funds that are still , what are theyt looking for in an outcome? what are they hoping for? >> in reality, what everyone is

looking for is a change in government as being the actual solution to this problem. that will happen at the end of 2015 and the three presidential candidates that have gained the most in the polls are more market-friendly people. >> but you just said 2015. that means this will carry on conceivably between now and the end of next year? >> yes, in an emerging market, that is like a decade because so much can happen. macroeconomic things can change, everything can change. the government itself could change between now and then multiply all times as we have seen in argentina. >> you said market-friendly candidates. what impact would that have? is that they will want to reap the benefits of fixing this and have potentially eight years of boom in argentina. essentially, they fix this problem if they allow argentina

to return to capital markets. everybody is saying that this country will be a rockstar. >> this is not so much an economic fix they are looking for. this is a reputational fix because argentina again is taking another hit in the international markets. >> sure. the current administration has a policy of not issuing debt, not healed -- not being market friendly. the hope is that the next administration will see, oh, the cost of doing this is nothing compared to the benefits of dealing with this. >> we will continue to follow the story. thank you so much. that is it for the latin america report for this thursday. this year, jaguar announced plans to re-create one of its the beloved cars, lightweight e-type. ♪ >> i call it new classic that honors our heritage. in 1963, jaguar got some calls

from customers. they took that call and produced 12 for competitions. they had planned to build 18. the car that you see here is a prototype car that is helping us build the last six. this car is exactly what it would be if it came off in 1963. liter, 340is a 3.8 aluminium the . >> -- aluminium block. >> we got really excited about how we can honor the past and finish the story. the next morning, we got down to

it. two years later, we are here. that is where the idea came from. don't see these cars devaluing the original 12. if anything, it enhances them because it is finishing off that track -- that pack. we are finishing off that whole story. with president obama ordering airstrikes in syria, we took a look at the f-35 fighter jet. as expected, it is really fast and comes with a special 3-d helmet. the cost is about $100 million. it is a fine computer. wilbur got an inside look at what makes this jet so special -- bloomberg got an inside look at what makes this jet so special. a feeling ofe such technological superiority that i never had before in an aircraft. >> this is the f-35.

only a handful of pilots are certified to fly at an three main things make it the most intelligent fighter jet ever built. its sleek design and radar absorbing body makes it virtually undetectable on radar. aircraftave enemy coming at me, i can see them before they see me. so i get first look, for shot, first kill capability. >> the f-35 collect data from multiple onboard sensors, processes the information and sends it not only to the pilot but to ground crews as well. >> all these computers throughout the airplane are interconnected -- interconnected with fiber. we have fiber networks flying around. >> every pilot gets a customize helmet that literally can see through the floor of the plane. >> we have six windows around the airplane. i can't project that image into my helmet and see what the airplane is seeing. the plane may be technologically ahead, but the f-35 is seven years behind schedule and the cost has

skyrocketed, 70% higher than the original estimate. >> lima message offensive weapon system ever. that is because we are building three variations of the same basic aircraft with the u.s. navy, the u.s. marine corps, and the u.s. air force. >> it was built in fort worth texas. the company could generate $6 billion this year alone for only 108 have been completed so far by lockheed as been -- lockheed has been contracted to build 2400 just by 2029. really translates to the fighter pilots of the future, it makes them survivable and lethal. this programming note -- we will continue our coverage of the alibaba story on "street smart." "west," how china's

booming luxury market could mean good news for alibaba.

>> get the latest headlines at the top of the hour on bloomberg radio and streaming on your tablet and on bloomberg.com. oft does it for this edition "bottom line" on bloomberg television. thank you for joining us. "on the markets" is next. see you tomorrow. bloomberg television is "on

the markets." i am julie hyman. we haven't seen financials with the gains all day. that remains the case. the dow trading at a record today. it looks like it will be a record close on the heels of the fed. it's time now for today sector report. we are focusing on the homebuilders. the fed announcement will keep rates low for considerable time. that could be good news for homebuyers. this morning, we also learned that housing starts fell the most since 2013. we did have that number this morning showing that housing starts fell. it has been an interesting year for housing because we have seen this unevenness in the growth of housing.

what is going on and will it change anytime soon? skewed by number was the multifamily component. >> meaning apartment buildings. >> correct. normally, apartment or 20% of starts. today, they are 40%. it is within the normal band within the last 15 years, the season for july and august lowdown. the recovery has been lumpy. you have tight supply but you also have limited demand because you have limited financing ability. with only half the market able to really afford or be able to get a mortgage, it is limiting that uptick as we pull out of the down zone. >> even if rates are going to remain low for considerable period, that doesn't seem to be very helpful for people if you can't get financing, if you can afford a house, anyway. it doesn't matter if the rates are too low.

>> right. it is really the overlays being put into place, particularly by the government entities. part of the problem is that it is a 30-year mortgage market. if rates were to rise a little bit, i am not terribly spiffed about it because we -- spooked about it because they turned to arm loans. and a lot of the regulatory and government agencies are putting loans back to the banks that have been effective. if we get away from that and move to a more 5-1, 7-1 our market, they will put loans on their balance sheet and also deal with the government. >> that could be easier under that scenario. >> the government is slowly but slowly getting the message. it has gone way too far and we have to be somewhere in the middle. thehere do you stand on individual homebuilders as far as your recommendations?

they have good numbers counterbalancing some less positive numbers. to seehink you are going some easy comps going into the third quarter. over a year ago with a spike of mortgage rates over the summer so activity slowed a year ago. absorb those rates and we will come up on easier comps. you have more open stores and you can sell more homes. pultee multi--- we like and kb home's. taylor morrison is more of a western market. pulte is more diverse. we like the trade of a buyer, the higher-end, for the reason of the mortgage availability. >> thank you so much. "street smart" is next.

>> welcome to the messed important hour of the trading session, 60 minutes left in the closing bell. alibaba is preparing to make wall street history. has ma'e-commerce giant wrapped up i