. >> next, karen elliott house, to discuss her book on saudi arabia. an inside look at saudi arabia. this interview is part of booktv's college series and is 40 minutes long. >> now joining us on booktv, karen elliott house. she's written a book about saudi arabia, studied, reported on that country for years and years. but before we get into the book on saudi arabia, karen elliott house, how did you get from texas to become publisher of "the wall street journal"? what was your route? >> guest: i went from matador, texas, population 900 to the university of texas in austin, from there to the "dallas morning news" for one year, covering education, and then their washington bureau, and i got hired there by "the wall street journal," and was a reporter, and then ultimately foreign editor, and then president of the international operations, and then publisher of "the wall street journal." >> host: how many years did you do that? >> guest: publisher. >> host: yes. >> guest: four years. >> host: what did you think of that? >> guest: it was a lot of fun but it

thank you very much, ramesh and margaret, elliott gotkine in tel aviv.will see you all again next week. >> "political capital" is a production of bloomberg television. ♪ >> tonight on "titans at the table," i traveled to what many consider the las vegas of the east. macau. this is part of what attracts people? >> yeah. >> the small territory on the south of the chinese coast raked in $45 billion of revenue. more than seven times that of vegas. >> did you ever think macau would surpass las vegas by that much? >> it makes perfect sense. the resorts are world-class compared to las vegas. macau has taken off. >> the next generation of people from china have become more affluent.

elliott have any company, or is elliott all alone? >> they are not alone. hedge funds are with them in this battle, and beyond them, there are a number investors, italians that lost their savings in the default that are also suing in various different courts, including the world bank. >> to what extent we look for this as to how now all international sovereign disputes will be settled? >> it is difficult to look at this as a precedent because this is a very unique case. he contracts that argentina sculpted and defaulted on our very unique. they are old-fashioned and not really in existence anymore. in terms of the interpretation of the court, that is fairly unique, experts say. in terms of creditors' rights, this could be precedent setting. >> katia porzecanski, thank you for joining us. you can read her article on bloomberg.com, get up to speed. coming up, we will discuss fed chair janet yellen is the fed fueling a stock bubble? us know @bsurveillance. ♪ >> good morning, everyone. "bloomberg surveillance." i am tom keene. with me adam johnson. olivia stern

. >> host: karen elliott house, when did the modern saudi arabia come into being and the modern ruling family? >> guest: the modern saudi arabia came into being in 1932 when the kingdom of saudi arabia was declared, but the people who ruled that kingdom have been ruling arabia off and on for more than 250 years. the al-saud family. they began in 1774, then lost control, came back, lost control again in, like, 1880, and then the founder of this saudi state returned from exile in 1902 and spent 30 years in a civil war in saudi arabia suppressing and organizing the country into what is now the kingdom of saudi arabia. >> host: how large is that ruling family? >> guest: they're -- he had 44 sons by 22 wives and 36 of those lived to adulthood. there are still some of those boys, and they have -- men, old men, and they have ruled the kingdom from brother to brother since he died. but the extended family, there are at least 7,000 princes. and this is part of the problem for the country, that there are so many. they can't, obviously, just be in government, so they're now like kuzzu in temperat

elliott gotkine is live in tel aviv. the faa says it is safe? >> israelis would say it has always been saved to come and go from israel, and the faa was overreacting. but the u.s. federal aviation administration, the regulator and the u.s., now says that after taking all the information into account, they have concluded that it is ok for u.s. airlines to fly to and from israel if they want to. some airlines may decide they still do not inc. it is safe to do so. is -- still do not think it safe. there are a number of airlines that are still not flying. korean airlines and turkish airlines. a quick look at the arrivals and departures. a vast majority of flights they canceled or not final. >> thanks for the update. elliott gotkine joining us from tel aviv. ben-gurion -- as he says, not fully open. coming up, we're going to talk about moscow. and basf's relationship with russia. geopolitical turmoil. yes, it is affecting business but the numbers out this morning tell of strength. we will go through the details when we come b

elliott kotkin is live in tel aviv. are the you in's words -- the un's words continuing to be heated? >> we may be inching towards a cease-fire. the senior officer is quoted as idea is to stop firing at targets in gaza. it exploded in an open field, causing no damages or injuries. the israeli army says it retaliated at the specific point where the rocket was fired. beyond that it doesn't seem to be a lot happening in terms of strikes. gettingsible we may be a de facto truce or cease-fire on the ground now. that is what they want to allow humanitarian aid to go into gaza. they want all parties to engage in efforts to achieve a durable, fully respected cease-fire. we could be getting there. we have got no official confirmation on that, but other sources suggest the israeli army a kinds saying there is of truce in effect now. israel wants to continue to destroy these tunnels militants have been using to try to get in from the gaza strip. >> it is rate decision day today. is there any sense the conflict may prompt a rate cu

we are not invested with elliott. >> i just had to ask.elliott management and pulsing her for a moment. if argentina just decides not to pay? that is the approach they have taken up until now. it sounds like an activism more between hedge fund and sovereign nation, it sounds like a great story and it has been a great story but does it end up working out for singer? >> i can give you the ultimate answer, but one i do that, we invest a lot of money with pulsing or. he is a winner and he and his team will figure out the right tactics step-by-step as distressed investors come out ahead. i cannot map it out -- map out a scenario where he doesn't win? >> he's one of the greatest hedge fund investors of all time. the don't want to take him out. it is a losing battle. >> tell me what strategies are winning right now. >> i'd love to. me tell you about a throwback strategy. merger arbitrage. robert rubin, some legendary -- eddied managers lambert came out of there. it is an all-star crew. any 80's and 90's, it was a terrific strategy. and and a volu

. >> the holdout being elliott. are there more holdouts than just elliott? >> it is a big group.tt is one of the leaders of the group. this specific lawsuit follows elliott and some other hedge funds. and that includes 13 retail investors. there is a larger group. york wasnk of new holding hundreds of millions of for thein payment restructured creditors. hasn't it gone back? , it is. they issued a motion for clarification to the judge, basically asking what to do now. they want them to return the money to argentina and the bank of new york is saying please don't make us do that because we are really open to lawsuits. and they have gotten a tremendous amount of heat from everybody with anything to gain in this lawsuit. very much stuck in the middle. we don't want to be forced to return this money to argentina met, two conditions are until argentina gives them the numbers they need for the wire transfer and that the judge says you will not be held liable for doing this. wonder why you pay your custodial banks such high fees. the bonds, meanwhile -- argentinian bonds are in repair.

elliott gotkine is in tel aviv. how have the israeli people reacted to what they have observed in gaza? large israelis support the israeli objective, the israeli operation in gaza. not to say that there is not a degree of discomfort at the rising toll of casualties on the palestinian side and in particular the toll on the israeli side. 29 israelis have been killed. plus are what, 570 palestinians killed. a large number of those are children and noncombatants. there is discomfort about it israelis by and large support the fact that this is something israel was reluctant to join into and it had to be done. >> we focused on hamas and how they are distant from the cease-fire. secretary kerry and the egyptians are speaking of. how close is israel to wanting a cease-fire? the egyptianepted cease-fire proposal last week, hamas says it was not consulted. it says it would go to egypt to discuss the proposals. kerry, due to meet with nextdent al-sisi in the half hour or so, has said the ball is in hamas' court to accept the c

elliott gotkine is our middle east editor. we will carry on the conversation about egypt when we get back. a company has been involved in the story and we will talk about all of that when you come back. we will see you in a moment. >> good morning. welcome back. we are in london. it is an equity section. let me show you what is happening with the stock market story. we open down. a little bit of a momentum. you can see it down. -- it is down. the manufacturing number is stronger than forecasted. below expectations. we are way stronger than expectations there. this is interesting. there is a feeling about the german economy as a result of what we are seeing from russia. get some context in there. hans nichols has the numbers for us. >> it is clear. we see a diversions with german manufacturing and french manufacturing. it declined over the last months. it is a surprise. germanyted that in because of the exposure to russia. they came in at less than expected and you can see them holding up. it is an indication. and you take ae l

we had it to the small town in search of michael elliott. >> heavy seen michael elliott? you see, he made a deal with the devil for a lousy $100 he agreed to buy a gun in his hometown of mississippi for another man in chicago. eventually it ended up in the hands of the robber who shot and killed a chicago cop. >> never in a million years to add things somebody would walk around the corner and shoot my son. >> tom and carol saw tom jr. gun down right in front of the home. four men wanted his motorcycle and a two-time barack war veteran could not survive his own neighborhood. that gun did not come from chicago's mean streets, it was bought 600 mi. away at this country corner store in the middle of nowhere. it may be hard to believe, but these southern towns made famous in the blues highway arnelle a pathway for guns to the north. wgn made the trip. we came down here to mississippi to the pawnshop. we wanted to ask the owner of the shop what he thought about a gun from his place being involved in the killing of a chicago police officer. you see, the shop was sued to force th

tonight a conversation with joe elliott and rick savage, two of the founding members of one of the most successful heavy metal bands, def leppard. 35 years after they came onto the scene, they're still going strong now on tour with kiss. we're glad you joined us for a conversation with rick savage and joe elliott of def leppard coming up right now. ♪ >> and by contributions to your pbs station from viewers like you. thank you. >> rick savage and joe elliott, two of the founding members of def leppard met as teenagers forming the band that is still going strong 35 years later. they've sold more than 100 million records worldwide and are currently touring with kiss. let's take a look at leppard performing their hit song "pour some sugar on me." ♪ you've got to squeeze a little tease a little more ♪ ♪ easy operator come knocking on my door ♪ ♪ sometime anytime sugar me sweet ♪ ♪ little miss said sugar me ♪ yeah, yeah ♪ give a little more ♪ take a bottle shake it up ♪ ♪ break the bubble ♪ break it up ♪ pour some sugar on me ♪ ooh in the name of love ♪ pour some sugar on me >> joe and rick,

let us head out to tel aviv and bring in elliott gotkine.u is a warning of the war could drag on. is that something we have to prepare for? chris and that is what he is saying. away and another leader of hamas in the gaza strip and his house was one of the targets hit since late last night along with a building station.amas' tv they will round up the campaign, a longer campaign. what seems to be happening, netanyahu warning they may have to brace for a long campaign and bracing himself for further diplomatic or sure to carry out a cease-fire. and also preparing himself for more international -- from countries decrying israel for carrying it out. to the iranian leader described israel as a bunch of "ray bit -- a rabid dogs and wolves. demilitarization seems to be the prime objective. netanyahu saying the destruction of the tunnels which hamas uses to infiltrate israel is in the first of several steps perhaps towards getting a demilitarization of gaza strip. >> elliott, it has an impact on the economy and all business. at gaza's economy was al

israel says it has fired rockets and started a ground operation into gaza in attempt to stop hamas the elliott, what's going on right now? >> ok, right now there are israeli ground forces in gaza. you can see on the television that the sky above gaza is being lit up by fire. the israelis say that their intention is to go in and destroy the underground tunnel network hamas and other groups have been using to try to get into streal to carry out attacks. it seems the tipping point for benjamin netanyahu, who has been pretty reluctant to carry out this ground operation, was this morning's infiltration of 13 militants from hamas, they came some 13 kilometers into israel via underground tunnel. one was tilled -- killed by the israeli defense forces and the other 12 managed to escape back into the tunnel. pim, it really is struggling to deal with these tunnels. it cannot find or see what all these tunnels are, so it doesn't really have as much capacity to defend itself from them. >> elliott, i wonder if you would talk a bit about the scale of the tunnels and what sorts of things are being brought und

elliott gotkine from tel aviv on -- who is the biggest 2014 albatross? we begin the program with the chairman of the immigration task force, luis gutierrez of illinois, probably the most influential latino leader in washington. let's talk about the border crisis. here are the facts we know. these kids are coming from only three countries. we also know that the 2008 law signed by president bush creek bush the then president from immediately deporting them. they are treated differently. he is asked for $3.7 billion to meet this crisis. republicans say we have to repeal this law as part of the package. is that a dealbreaker? >> it is. we did it for a good reason. it is a due process. in 2008, bush signed a law. just think about it, michele bachmann, lamar smith, they all voted for it. levelheaded people at the same time came up with the policy. >> if they try to repeal it, you would say under no circumstances? >> the only thing barack obama will ever pass and sign into law is never an immigration reform bill that would bring benefits to our country economic

elliott, thank you so much. live there from tel aviv. now to another major international story, the crash mh17 ysian firls flight in the heart of the area nvolved in the ukraine civil war. a ukrainian official says the plane was shot down and is pointing the finger at ukrainian separatists, staying intercepted phone conversations among militants talking about the plane, but those rebels are denying responsible. moments ago russian president vladimir putin said ukraine bears responsibility since the crash happened on ukrainian soil. president obama has been on the phone with the major players, including ukraine's president from air force one. straight to mike mckee in new york with the latest. the u.s. now saying that we believe it was shot down as well? >> yes. intelligence officials are telling reporters in washington, including from the washington post, that it was brought down by a surface to air missile, though they haven't determined what kind or who bears responsibility for it. however, given the la -- location of this tragedy, it'

elliott, i would like to ask you about what the president had to say. just for our vowers first, this conflict feels far away. what does it matter to the united states what is going on in israel and gaza? >> israel is an important ally of the united states and everybody else is watching to see how we react. egypts are. iranians and russia, what kind of ally is the united states. are are we reloyable. >> it is a mixed picture. >> and we have source concerns. he didn't say this is the fault of hamas in that phrase that you showed. this is a war crime by hamas and putting rockets in mosques and hospitals and schools. and so far, we are very good but worried about what secretary kerry said, you know when chris wallace confronted him on it. the criticism of israel is starting. >> and that was to as our viewers know. the comment between introduce when he said to the gist, it is a pin prick operation. it was hard to read his expression. i wish we had it. our viewers know it was off camera and difficult to discern was he sarcastic or what was he trying to say.

elliott saying it believes emc would get a substantial boost from such a move. at the same time, allergan, of course, continuing its fight against valeant. it does have better than expected quarterly results announced, along with a plan to cut jobs and save as much as 475 million annually by calendar year 2015 as it fights back against that valeant offer. news on both sides. start with emc. i can tell you that, elliott has been there for about a year, at least looking at it. and does have a roughly 2% position. meetings are coming up between elliott as one of the large shareholders though obviously dollarwise it's large, percentagewise, not that large, and management. they're going to see them, i believe, next week from what i'm hearing. the key here, focus is, you know they own 80% of vmware. it's being held back by being owned within emc, as you pointed out, and the multiple is much lower than it otherwise would be. the ceo is retiring in february of next year, he's 66 years old. they believe there are a lot of strategic acquirers for business or spinning out

elliott mortgage is announcing a 2% stake making elliott the fifth largest shareholder. one of the largest position an activist investor has taken. breaking this down, emc is made up of three separate businesse., the journal says elliott will try to convince them to spin off 80% of their market cap for about 75% of emc's value. if it splits off, vmware and several propen shl buyers could emerge for part of emc. oracle and hp could be interested. emc reports second quarter earnings on wednesday. the last quarter profit fell 30% while the company shares have merely doubled over the past five years. the nasdaq has gained 135% and the dow jones computer hardware index is up 171%. some analysts have said emc stock doesn't fully reflect the value of its storage business and a spinoff could address that. the journal says elliott management plans to meet with the chairman and ceo who is expected to retire next year. the activist investors played a big factor in the tech sector in recent years. value act recently got a seat on microsoft's board. elliott management also has a succ

so a little more about elliott smith himself. how did he get his name? >> we have some fabulous photographer, diana elliott and christopher smith and they were over taking pictures and elliot smith that's how his name came about. it's a great name. >> he has a first and last name. very good. an how old? >> about 3, 3.5. >> he is available for adoption. to find out more about maine coon adoptions or mr. elliot smith go to our website, kpix.com to "links and numbers." elaine, thanks for joining us. >> can i just say a great thank you to the organization in pleasanton a wonderful organization their goal to adopt all adoptable and treatable animals to create a no kill nation. >> thank you. >>> an inspiring story of a deeply personal link between two families. years ago a father lost his 20- year-old son and now he will get the memory of his son back through a transplant surgery. kpix 5's john ramos has that story. >> reporter: usually you don't want the gifts you give to be returned. but bill millard couldn't be happier about it. >> i have been on dialysis f

let's get back to elliott.ng israel and palestine after the bodies of three missing teenagers oh who were a dubbed it and murder while -- who were abducted and murdered while hitchhiking. the eyes on gaza. details of all the the growing tensions in half an hours time. >> thank you very much for that. despite a focus on the banking sector and big finds and the geopolitical that drop, what we see from the equity markets that are just opening up? let's get a detailed look with a manus cranny. on the equities, they should turn from reddit yesterday, a little bit of a green up 1%. europe is trading at the highest since 2000 and nine. on an earnings basis, 15 times. -- since 2000 and nine. the top 10 ey

elliott? thanks. soldiers, tanks and bulldozers have moved into the gaza strip from israel after 10 days of airstrikes failed to quell rocket fire from militants in the gaza strip. prime minister netanyahu says the mission is to destroy tunnels that allow militants to try to infiltrate israel and restore quiet to the communities of israel from that rocket fire. all the details in about 15 minutes. >> thank you very much. the market will be trading on headlines throughout the morning. it is about geopolitical risk. markets just opening right now. manus cranny at the touchscreen. >> the surprising thing for these equity markets is that they are not lower. that was one sentiment that came withgh when we caught up one of the lee partners earlier in countdown. equity markets, we are just waiting to see how they begin to open. these are a little bit of an indication. paris is now opening. look at that, that is yesterday's close. let's dip into london and see the complexion of what is moving. shire pharmaceu

elliott gotkine joining us from tel aviv.m israel back to europe and germany has expelled the top american intelligence official in berlin from the country over spying allegations. let's get more details on what is happening here. , serious business, isn't it? >> it is serious. it is escalated. there is a sense from reading the german papers that angela merkel wanted to get the u.s. attention. this is her way of seizing the narrative a little bit and trying to control it, saying it is such a big deal, i am taking out your top spy. we are waiting on confirmation if it is indeed the cia bureau chief. it is the top u.s. intelligence official, ordered to leave german soil. it is a remarkable story. we still do not have a firm otherse from the u.s. yet than niceties about the u.s.-german relationship. you are still waiting to hear from the u.s. on this and whether or not there has been a call between president barack obama and angela merkel. >> it would be fascinating to find that out. this story not going away. in headlines more

elliott dokken joining us with the head of taptale let's turn to pharma.e will be in london to a takeover.for for more, let's bring in matt campbell. good morning. threehas rebuffed abbvie times. what is he hoping to achieve this week? >> this is a lot of convincing and listening. everybody expects abbvie to make another bid, increased bid. looking to hear from shire shareholders and what they are looking at and where they think the fair value of shire is. that is quite a heated debate. shire is fast growing and their stocks are way up so investors will look for a pretty big number before they start pushing shire management. >> you said everybody is expecting that we expect them to raise the bid. the share price of shire has not moved whenever -- the second of final offer from abbvie. >> is trading where the third offer from abbvie was. it reflects a little bit of investor skepticism. astrazeneca.ith important differences from the situation. much fanfare, determined american a choir and did not happen. the market has a little bit of caution. any sense of w

elliott, any progress towards a cease-fire?e have seen a number of reports today ranging from the plo is saying it is hamas and also others agreeing to a cease-fire. and then channeled two television here in israel was saying the parties had agreed to a cease-fire, as well, only to say that they have not. there will be nothing until israel stops its airstrikes, any be takenns that should with a very large pinch of salt. about the view of u.s. secretary of state john kerry? >> john kerry, of course, has been working tirelessly again to try to get the parties to reach an agreement over a cease-fire based on the proposal from egypt, which israel accepted about 10 days ago and was rejected by the militant group, and they have, under a lot of criticism in the israeli media. that we suggesting would have had this by now had it not been for u.s. secretary of state john kerry coming in. he has said that benjamin that yahoo!, he has speaking with them up to four times a day. and they are not worried about critics, part of the job of bei

let's talk to elliott got kine.ays they are considering what the details are of this pack. pact. >> hamas seem to have rejected it on the grounds they were not party to it. that hamasten word is considering the truth. if you look at the twitter feed there have been 11 sirens that have sounded in various towns since israel declared a cease-fire. in 2012, when there was the last conflict and after the cease-fire, there was sporadic firing of rockets, and israel responding to particularly where the rocket fire came from. it would not be imaginable -- unimaginable for some kind of cease-fire to remain in place. >> john kerry is on his way to cairo. back into theypt world stage as the broker of peace in the region, especially between, and israel. what would it mean for the egyptian prime minister? reviled for what many people saw as a coup. muslimacked by the brotherhood. the president has been crushing wasrotherhood after morsi ejected from office and since coming to power about a month ago. he is returning to this trad

july 7th to turn in any signatures, though we've been informed at the meeting by the mayor and jason elliott that the unions have said that they are not going to move forward with their ballot measure, but just note that it's still there. and if -- >> they don't have the signatures, can it still get on the ballot? >> no. >> it will still be there. it has one more ballot cycle that it could get signatures. >> oh, okay. >> so, that means there could be some strategic tactics in keeping it filed. so, yes. so, if they do not turn in signatures, that doesn't necessarily mean that it cannot be on the ballot again. but if they do not turn in signatures the second time around, then it is officially pulled. so, with that, i think commissioner dwight, i'd like to know if there are any words that you or anything you would like to share from the meeting at all. >> i think i would just like to commend both the mayor and his staff, especially jason elliott who has been very busy and diligent on the -- well, all of thea issues, but especially the one that i've been most involved in, which is minimum wage,

elliott gotkine is live in tel aviv. elliott, what is the latest? great elements.ve more air raid sirens going on throughout israel today. more airstrikes. this morning, this unmanned aerial vehicle, a drone seemingly coming from the gaza strip, heading towards a southern city. it was shut down by an israeli missile but that could mark a rather worrying development from the israeli' perspective. hamas missiles, there have more than 1000 of them into israel. hamasjuries is all that has got to show for it and a small amount of damage. more manages to send drones, perhaps they might have more success in trying to kill people. certainly the death toll in the gaza strip has been rising steadily. we are at around 170 according to the united nations. about 1/5 of those are children. if there is a ground invasion, that figure would inevitably rise. course, the israeli prime minister is focused on gaza. i guess he has got one eye on what is going on in iran at the same time. >> he has always got that one eye on iran if not both of them. he says iran is financing arming and

elliott gotkine is live in tel aviv. ?hat is the latest >> quite a lot of developments.ow according to the german newswire and the associated press. the death toll now exceeds 500 in the gaza strip. this is over almost two weeks of fighting. spotted two terror squads just north of gaza. one was hit by israeli airstrikes. al jazeera is saying there are some israeli casualties but no word on the israelis. this comes after the bloodiest day in the current round of fighting. 87 people killed yesterday. 60 of those in one particular area. this is an area the israelis say was used to store rockets and to fire a large number of rockets at israel. that is why there was so much intense bombardment. it seemed there were a lot of palestinian children and thousands forced to flee their homes. of talk.e heard a lot so far they have not backed it up. havehis presence in egypt any effect on what is going on? >> he was shuttling back and forth. now look at where we are right now. presence shows the seriousness the u.s. is now taking the current situation. israel. position is that has th

three years ago government elliott explaining -- three years ago i remember how it explaining there were no foreign isghters, there was no is interior. you have the free syrian army, representative of not just a diverse religious and ethnic groups, but it is attempting to hold the country together. so it in and support this. we had the french ambassador are doing the same thing. meeting after meeting, we conveyed this. i personally spoke to the president about this once, but on up throughout the administration, we have pushed for about three years' time to get support to the free syrian army. so now we are three years later, and we are talking about doing this, and in the meantime isis, the foreign fighters came in, they established this each head, and nothing was done to dislodge it. assad himself did not attack until recently. he could be pounding them with the help of hezbollah and help from forces in iran. and at the same time they would have to contend with their bitteroperation -- opposition. frankly, we should taken the advice and supported that free syrian army early on. in terms

for more on this let's bring in stuart elliott who is the senior managing editor europe in africa or new street thanks for joining us for a long time it seemed like the e.u. wasn't really willing to get involved in this they weren't keen on imposing heavy sanctions against russia what would you think is change their minds. i think obviously the downing of the plane the civilian plane over ukraine has had a big influence on brussels decision to get more involved in this there are set of sanctions against russia the most far reaching they've ever done it it's a historic moment in that respect i don't think they necessarily wanted to target as economy certainly not its energy sector which the first one they are. but i just felt that they had no choice the stronger it's ok some of russia's biggest state run companies are involved in from european in and u.s. financial markets but that actually mean for them. well i think in terms of the energy sector there's going to be much impact rosneft is one of the companies it's on the u.s. sanctions list and they are barred from from getting finan

thanks for joining us tonight, elliott. >> you know, the casinos peak out in 2006, the profits so foright years they have in the gone anywhere. there are a couple reasons for that. first of all, the economy you keep reading that only higher levels of income have really done well which doesn't do well in a city like atlantic city. other thing is there is so much more competition then there was then. all of the surrounding states have gambling. so, the pie might be a little bigger but there are a lot more slices coming out. >> every time i go to atlantic city i see cars and people. what are they doing if they are not going to the the casinos. >> i bet you go in the summer, maybe on the weekend and that is pretty easy to do but there will have to be a way to get people in on a cold tuesday in the winter. the ones that stay in business will need better amenities, world class restaurants, maybe a little cultural items to. it is just, they are really going to have to work to keep clients. >> what about the talk of the new cruise terminal maybe coming there, don't people expect casinos when

let's go to elliott.lliott warren, i briefly what we saw with regards to the dollars today did affect crude into a lesser extent natural gas. >> crude rallied up because of the iraq war and i have been on the last couple weeks talk about how i think it's overpriced, but kudos come back down to this 102 level and $100 is a psychological support number. i'm pretty bearish in that market, but people will hold it up and in the real world the number doesn't matter, but a hundred dollars is a nice round number. we have seen natural gas hit a big downtrend. it's really sold off well. i have been really wrong about natural gas because i have been bullish, but you can look for crude to pick up and gas to continue to slide. melissa: elliott, i'm an optimist. i do believe we are going to open up the keystone pipeline at some point. mark. >> the energy stocks are starting to play catch up and we saw energy commodities over the last few weeks and oih was overbought and the leading sectors of the downside today, energy

elliott gotkine joining us from tel aviv.g more from the leader of hamas on charlie rose tonight. also stay tuned for more on this story. a little later in the morning here on bloomberg television, we're going to speak exclusively with israeli finance minister lapid. more coming up on bloomberg tv. we'll see you in a moment. ♪ >> good morning, everybody. welcome back. you're watching "the pulse". let's get to our top b.p. story. russia's troubles mount few businesses have as much at stake as b.p. we're joined by the director of research at oil and gas at r.b.s. good morning to you. there was a statement this morning highlighting the risk, the potential further sanctions on russia could pose to b.p. how worried do you think mr. dudley is? >> i suspect he is extremely worried. he has a right to be worried. i think they are annoyed that we're having this morning an overreaction. let's put this in context. the it is important but it is a couple of paragraphs in a couple of pages of a shopping list of risks to which b.p. draws inv

the middle east editor, elliott plotkin joins man the phone now. what is the latest on ground the latest >> figures and facts are even grimmer than the ones you just read out. 600 five palestinians killed. 150 four had children. 30 israelis have been killed. so the fighting is continuing. rockets are still being fired into israel and israel still retaliating. we are seeing the impact of that as you mentioned in the headline with the issue of it coming in from the united states. >> there are intense diplomatic efforts underway to end the violence. are the talks making headway at this point? >> john kerry has met with the egyptian president, u.n. secretary general. said the fighting needs to stop, then we can deal with the other issues. week.as on the table last hamas said it was not consulted and then rejected it. it is demanding the release of hamas members who were rounded up when they were searching for the murderers. >> you just mentioned the aviation situation a moment ago. u.s. and european airlines cast -- canceling flights to and from israel

. >> elliott management, the hedge fund operator by paul singer urging argentina to begin negotiatingettlement to resolve a dispute over the defaulted bond. elliott said talk should not wait until july 7 but a team of argentine delegates set to meet with a court-appointed mediator. president obama taking a price on the economy from ben bernanke today. of the whitet house luncheon. the meeting coming just one day before the u.s. jobs report. interfered --e interfered a couple of times but done with his record 31 days. said he was feeling great. good news from him. top headlines at this hour. back to you. >> a bank designed to build assets, profit and help move the business forward. connect one working to strengthen its business. combined thing -- combining with center bancorp. talk about the strategy behind the deal, frank sorrentino, chairman and chief executive of connect one. thank you for being here. as we were just talking about, cases, this has in many -- you might say why does it take six months, but in the banking world that is considered a short amount of time? >> very short.

elliott gotkine is live in tel aviv. ofanyahu warning withdrawal the work could drag on. frombuffing calls president obama and the m&a -- to happenity council international cease-fire. he told israelis to brace themselves. as saying he wanted brace himself for more diplomatic pressure. more for theng operation being carried out in gaza right now. hospitalesterday, a and a playground was hit by shells. the ministry said it was hit by militant rockets falling short. the militants accusing israel of having carried that out. netanyahu saying the destruction that militants used to in full trade israel including an incident last night is the first step, and an imperative step of a materialization of the gaza. that seems to be now the ultimate demand of prime minister netanyahu. to sign any of court to avoid accord to here -- avoid being back here. being repeated. pictures frome there. thank you for the moment. >> for more geopolitical hot potato to another, in brussels, eu leaders are meeting to sign off on a range of much tougher sanctions on russia that could be finalized by

elliott gotkine joining us from israel.f thealk about some company news that we have been tracking this morning. deutsche shares under pressure this morning. the new york fed has reportedly faulted the bank for inaccurate and unreliable financial reports. hans nichols joins us now from berlin. not atsm directed here what is happening in germany, but the u.s. operations. >> this is really focused on the u.s. operations. think of this as a bad report card that you got before christmas and it get -- and it became public in july. the question everyone is asking is is the underlying behavior still there or hasn't been rectified? deutsche bank has done quite a bit to rectify some of its problems. when mark legal settlements. they have tried to work closely with regulators. yet this letter came out. it is likely that it came from the new york fed's office. it is unlikely that deutsche bank would actually release its own letter because you have seen their shares get absolutely hammered. it happened yesterday when the wall street jo

elliott gotkine. we are going to get your investment perspective.o you trade around these stories? a will get the view of goldman sachs asset manager. stay with us. ♪ >> good morning and welcome back to "on the move." i am guy johnson. tougher sanctions on russia. world leaders are almost certain russia supplied the weapons that shut down malaysian flight 17. let's talk about that story. we have katie koch. she is at goldman sachs. good morning. we want to talk by international. we are in a world where geopolitical risk is clearly dominating the news. what is happening in the ukraine and what is happening in the middle east. the big stories with potential ramifications. i look at the market reaction and yes,, it has spiked a little bit. markets moved a little bit. around the your head differences between geopolitical risk and the enormity of it and the market reaction? >> i very much agree we are looking at a market that is exceptionally rich in risk. offsetting that is there've been pretty good macro news coming out of the mini major economies espe

elliott management has those will stop those talks led nowhere. we had talks there. overtime done. there were 30 days and they decided to only chip in the economy minister the day before it was due. interesting timing there. according to the holdouts, there were several proposals floated in the talks by the debt negotiator, the special master appointed by the court and argentina rejected all of them because they can't pay elliott more than who they paid the debt restructuring in 2010. >> what is the take on this now? >> we will find out. they meet tomorrow. they have their first request andto decide on this matter to see if it constitutes a credit event for a default swap trigger. let's we're just talking about what the people on the streets .f buenos aires are saying forgive me for being repetitive, but what is this going to mean argentinians? >> it depends on the length of the default. if it is something that resolves quickly, it should not result in a catastrophe. on,problem is if time goes and bondholders begin to feel this is a real default that will not be reso

[applause] >> think so much, elliott. much, elliott.his brief background, he is a harvard law graduate. he was the chief of staff for the lieutenant governor of colorado. theit is the -- is first-ever director for marijuana coronation for the state. let me talk about -- i will let him talk about challenges and successes from his vantage point. give a hand to andrew. [applause] >> thank you. it is a pleasure to be here. i want to thank everyone. they are big thought leaders in colorado, not only for the amendment, but for the people you see -- to see around corners. they are seeing the challenges they will have in the future. it is that kind of thought process and partners that make me want to come here today. my hope is we are will be -- is that we will be cultivating that spirit. i'm the governor posture of marijuana ordination. -- co ordination. which is a title my law school friends are jealous of. with theas less to do debate over marijuana legalization and more to do with , we can have the debate is much as we want. i tend to not i

that is the main objective. >> elliott, thank you. program, former secretary of state hillary clinton speaks to charlie rose in an exclusive interview about the downing of the malaysia airlines plane and potential implications for the russia-ukraine conflict. and as we had to break, you're looking at live pictures from malaysia. a news conference is set to start shortly on the plane that was taken down in eastern ukraine. we will bring that to you later. ♪ >> welcome back to "the pulse." let's get back to that press conference taking place. the malaysia airlines plane was shot down over eastern ukraine. the malaysian government is delivering a statement in kuala lumpur. let's listen in live. malaysia condemns in the strongest possible terms [indiscernible] the ukraine government will investigate -- >> we are having a few problems with the sound. we will see if we can get the sound back. let's rejoin that press conference. >> malaysia will send representatives. also welcomes international investigation into and urges parties to coopera

elliott gotkine, multitalented.ery much. >> audi and mercedes are narrowing the sales gap with bmw. let's get over it to hans nichols who is a live from berlin. clearly mercedes, nipping on the heels of a bmw to be in first place and luxury car race. how safe is bmw's lead? ahead ofy are 16,000 spot and is in the top they finished last year in the top spot but there are troubling signs for bmw and audi balmoral bmw. later this year, mercedes c class will be introduced in china and that is where a love the growth is. if you are look at the numbers, it is impressive. -- and that is where a lot of the growth is. audi's growthat and it is propelled by a strong showing in china and the u.s. and oddly, spain where they have had a cash for clunkers program. you do not also said that an luxury together so we will dig into those numbers a little more. overall, you see strong growth in china. stronger growth for all of them in a lot of ways. because bmw may be losing marketshare to mercedes down the line, some analysts are pr

elliott gotkine is live in the middle east. how likely is it that we see a grand invasion?i-moon saying that they are on a knife's edge. >> there are still a possibility that it's happening. most people in israel and certainly the international community are hoping that benjamin netanyahu is bluffing. on theere are tanks border. yes, 20,000 reservists have been called up to duty and so far half of those have been called up and netanyahu is being egged on by the right of him to take a tougher stand against hamas. let's not forget that netanyahu has never been here before. groundme there was a invasion into gaza in 2008-2000 nine, he was not the prime minister and more than 1000 palestinians were killed that time around. on theill be fatalities israeli side and there has just been one serious injury where rocket fire hit the petrol station. this would clearly change if a ground invasion takes place. there would clearly be many more civilian casualties and right now we are right around the 100 mark overall including a number of militants among them. netanyahu is aware of the s

our middle east editor, elliott is live in tel aviv.ckets, a more airstrikes and more death. about the size of it. quite a depressing spectacle. this conflict now even more long-lasting than the last one between israel and hamas in 2012. we our in our ninth day. no signs of it debating after that cease-fire was rejected by the militants and they carried on firing rockets into israel which has resumed airstrikes against gaza where the death toll is now above the 200 mark. a few of those women and children. spectacle.ressing since we have moved away from that cease-fire, hopes that we may be inching towards the possibility of some kind of ground invasion, not a decision that prime minister netanyahu has made yet. troopsave been reserves called up in preparation for a possible ground invasion. yesterday we also had our third israeli casualty when a mortar exploded injuring a volunteer who had gone down to see the troops and take them food packages. >> the big concern with this story was the chance that there could be a grand invasion. on t