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 here, right? >> yeah. >> the small territory on the south of the chinese coast raked in $45 billion of revenue last year. 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 in macau are world-class compared to las vegas. macau has taken off. >> we are talking about the next generation of people from china have become more affluent. >> siblila

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 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

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 mostois, probably the 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 lutes the president from immediately deporting them. they are treated differently. for $3.7 billion to meet this crisis. say we have to repeal this law as part of the package. is that a dealbreaker? >> it is. for a good reason. in 2008, bush signed a law. michelenk about it, bachmann, lamar smith, they all voted for it. 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 economically and bring a sense of a safety harbor for the undocumented and their new deportati

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 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

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

joining me on the phone is bloomberg middle east reporter elliott gotkine. tt, any progress towards a cease-fire? >> we 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 wo

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

our middle east editor elliott gotkine is in tel aviv. how likely is this cease-fire within 15 minutes time? >> good morning. the israeli security cabinet is meeting as we speak. the newspaper here has reported that netanyahu is minded to accept egyptian cease-fire proposal. he doesn't people to the right callingnd his cabinet for tougher response against hamas. the third-largest faction has said that we can demolish hamas. that, they probably were not put a cease-fire proposal if he didn't think he would win it very to the israelis are well aware that they don't want to be seen to be the ones that are to be blamed for the continuation of this weeklong conflict. perspective, they have they reject the cease-fire proposal, but they will wait and see what the political leadership says. have a couple of good for the gander wins, but civilian casualties are mounting in gaza which helped some depict israel as the aggressor. hamas is also well aware that it could of sympathy from around the world for the current conflict, they don't want to lose

our middle east editor, elliott gotkine.me on "the the bank of portugal has just said that one of the country's biggest banks has enough capital. will that be enough to ease investor concerns about banco espirito santo? we will discuss, next. ♪ >> welcome back, you're watching "the pulse." let's look at what's happening in the currency markets. a two-day chart of the euro, a fairly big story yesterday, in the bond markets and the equity markets. the euro is still in a range. to be theseven seems story. right in the middle of that at the moment. we might be seeing a change when it comes to flows into european equities. in april with some of the credit markets. nevertheless, the euro seems range bound despite the story of the last 24 hours. distressof financial in portugal. 'ster banco espirito santo parent company missed some debt payments. the bank of portugal has now just said that banco espirito has enough capital to accommodate any negative impacts. we caught up with portugal's secretary of state to the prime minister, i

elliott gotkine is in tel aviv.us the latest. >> die, intense -- and i, intense fighting between palestinians and hamas. the death toll on the palate -- on the palestinian side is over 500. the latest incidents is israel saying they described 2 terror squads the digging tunnels north of the gaza strip. one was hit with an airstrike and soldiers engaged killing them. no reports of israeli casualties. there been various reports suggesting there are some. also report from al jazeera saying there is a general strike that will take place on the west bank due to product -- due to protests. there are efforts to get a cease-fire. we are not there yet. not. certainly are what difference will john kerry make? what is he expected to do? >> the outside world will hope he can knock heads together. there was a proposal last week that israel accepted and hamas rejected. and a cease-fire should show the u.s. is serious about getting a cease-fire. these calls are at gold from the council and world express a concern over the casualti

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

aviv.itors live from tel elliott gotkine. israel is vowing that hamas will pay.y much so, no one doubts the resolve of prime minister netanyahu and the israeli defense forces to exact a price on hamas, which it blames for the abduction and murder of these three teenagers as they were hitchhiking inside the west bank earlier this month. according to palestinian reports rats --d i high our aretz -- wey ha' did see more than 30 targets hit by the israeli defense forces in gaza overnight. that is been in response to a barrage of rockets that have been launched from gaza into israel since sunday before his cabinet meeting last night. that's never said the teenage boys were kidnapped and murdered in cold blood by beasts. hamas is responsible and hamas will pay. >> are we on the brink of another israel/gaza war? >> it is hard to say. it is a very precarious situation. israel feels the need to show that a price must be paid for this kind of murder. hamas does not want to show it can be pushed around. i don't think both sides realize an all-out war between the two is not

operation is not something that even touches the fundamentals of the israeli economy. >> all right, elliott gotkine us from tel aviv, thank you as always, elliott. fede begin two days of meeting, which means we need to speak with jim grant of "grant's interest rate observer." his article -- whether you agree or disagree with them -- it is truly a must-read. what is the distinction of this meeting this morning and onto tomorrow for janet yellen? >> she is going to have to reconcile the fact of very, very low interest rates, almost invisible interest rates, with the claims by some that the so-called prudential policies will keep us on the straight and narrow. on one hand, you have the open invitation to borrow to access and to speculate, to speculate for access with the existence, and on the other you have the growing clamor and sidewalk superintending of the federal circle financial stability people to make rules and kind of nudge us in the desired direction. >> you have been a sharp critic. what is your to do list for janet yellen to get the fed back on the correct track? >> she ought to renounce t

elliott gotkine is live in tel aviv. give us the latest.than 1200 palestinians rather than 12,000, but the fighting still continues in gaza. both sides are sticking to their positions. the latest incident, according to a health ministry official, tank shells hit a school run by the united nations in a refugee camp in gaza. 20 people were killed, and more than 50 injured. the israeli army says it is looking into that incidents -- that incident to find out what happened. it is unlikely to change anything. says the siege of gaza needs to and to stop fighting. those are seemingly irreconcilable positions and do not bode well for cease-fire to be reached in the near-term. the diplomatic pressure may wrap up, but that is unlikely to change anything either. peru and chile have recalled their ambassadors. some reports say that israel may in fact try to table a un security council motion to try to bring this conflict to a close. for now, i'm afraid things continue, and they continue to look bleak. >> >> elliott gotkine, our middle east editor. now w

elliott gotkine is live in tel aviv. what is the latest? thatna. the latest is houses of booths are now on the ground in the gaza strip backed by heavy artillery and tanks. the israeli defense forces posting footage on youtube of night vision images of these tanks entering the gaza strip right about 10:00 last night. so far there have been reports of about 20 deaths in the gaza strip. baby are also reports of a being among the casualties. know fromwe also previous experience ground offenses do lead to higher casualties. there have already been more than 220 palestinian skilled in these last 10, 11 days of fighting. the last time there was a ground offensive, more than 1000 died. both faced sides -- both sides ccusations of war crimes. one israeli killed. theisraeli army saying soldier died while fighting hamas terrorists. >> any indication about how long this operation is going to last? >> the israeli army and the we are waiting for prime minister netanyahu to speak. they have been clear that this is an open-ended operation. first among the objecti

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

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 has more. tense are things that go is been a couple of years and sees of airstrikes that we are seeing. it is been almost six since we have seen an invasion. how bad could this get? >> it could get a lot worse, ryan. tensions are running high. what seems to have sparked things is the abduction of three israeli teenagers and their murder. then there was the apparent revenge killing of a palestinian teenager. all in all, hamas has taken these things and started launching volleys of rockets into israel, something it hasn't done over the last year. it has been stopping other militants from doing so to keep the cease-fire that was broken at the time with egypt. israel has responded with airstrikes, at least 50 overnight, from the air, and also missile strikes from the sea. it is a very tense situation right now. israel calling up troops in the event that it wants to proceed with the ground invasion. things could get uglier before they get better, ryan. >> with the tensions mean in terms of politics

but it is meant to hold for six hours. >> elliott gotkine in tel aviv.big with the world's smallest car. details on why the auto giant is doubling down on the smart car. plus a self-healing fighter jet. what defense companies envision for the future of flight. sounds space age. you can follow me on twitter. back in a couple of minutes. ♪ >> welcome back to "the pulse" live from london. here are bloomberg cap headline. barack obama and the european union have impose more sanctions on russia. this time the u.s. targets banks, energy companies, and defense firms in their latest attempt to punish the country for its support of separatists in ukraine. >> what we are expecting is that the russian leadership will see once again that its actions in ukraine have consequences. >> janet yellen has finished the second day of her testimony to congress. the fed chair at ellis there are still hurdles to overcome but told legislators that she was optimistic about the state of the u.s. recovery. >> i do think the economy is recovering and that growth is picking up and th

our middle east editor elliott gotkine visited a few of the companies operating near the gaza border and says they have been surprisingly resilient. take a look. just another normal day. this is our daily -- >> routine. >> when they are not running for cover, workers about 8 kilometers north of gaza help sell 600 million vegetable plants a year. while we were huddled in the bombshell third, rocket hit his shelter, rocket hit this nursery. this crashed through the roof trayhere, knocking out a of putting pepper plants and all that is left here of the militant's rocket is this. the ceo says it is business as usual, but it doesn't mean they are not affected. siren,y time we have a people go to the shelter. it is a lot of times to spend on running and coming back. we have to stop all the machines and run them agains. there was a lot of damage to the cover of the greenhouse. it has to be fixed or replaced after each missile or shrapnel hit it. >> further south, men and women are making water heaters. gaza is just 4.5 kilometers west. a quarter of the workers are or caringth the army, for

elliott gotkine is in tel aviv. the diplomacy, what is happening, any impact?cannot really say for sure but we do have what the army spokesman described to me as a low. we are not striking with aircraft were carrying out ground maneuvers beyond the search for tunnels, but he said he would not call it a cease-fire. israel retaliated for that specific fire. there are reports there is some fighting going on in the northern gaza strip as well. militants have been using tunnels to get into israel to carry out attacks. >> we still want to make sure the tunnels are not operational and not a threat. that is the essential doctrine we are working with now. looks very much so. these tunnels were the main reason why prime minister net yahoo! ordered -- netanyahu ordered the ground invasion. about -- they allow you to stand up right and walked down carrying a weapon. the entrance was found underneath a greenhouse on the southern tip of the gaza strip. the israelis knew the tunnels existed. themctual network did take somewhat by surprised. hamas $30ave cost million and used

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

. >> elliott gotkine has given us terrific average from tel aviv.lf down toward gaza to ashkelon, a biblical city. mr. gotkine joins us now. statet, the secretary of is in israel. was his trip to egypt successful? if it was] well, successful, we don't know yet. he is again in israel to try to push forward the cease-fire proposal. he says progress has been made, but there is still work to be done. have a sense, we could cease-fire. color for us the way the secretary will be received by mr. netanyahu and his team. >> i don't think there is any and necessarily bad blood from secretary of state carries -- orted attempt secretary of state kerry's ill-fated attempt to broker peace. if the israelites are going to listen to anyone, it will be the u.s. and they are putting that u.s.eir argument flights to israel should not of been canceled. i think you will get a warm welcome, as he always does. he will be told in no uncertain terms by the israelis that this is the war of defense and that israel is defending itself from via subterranean tunnels. >> i'm glad

now for more on the news coming t of turkey, let's head over to elliott gotkine. what are we hearing? >> well, i find this a bit of a pitch finally revealing turkey's worst kept secret in that he plans to run for the presidency. that he would be president for all turks, not just one particular group if he is elected. saying that he would make turkey succeed and thrive in the future. the prime minister has had a few issues ranging from corruption allegations and violent protests in turkey. >> elliott, you're also watching israel, some very upsetting headlines over the weekend. the bodies of those missing teenage rs have been found. what has been the response? >> yeah, the three israeli teenagers hitchhiking home, their bodies were discovered just outside of hebron in the west bank. the reaction from israel has been to carry out air strikes in gaza against militants from the hamas islamic group which it blames for the kidnapping and responsible for missiles being launched out of gaza. > thanks so much, elliott. finally, alan mulally passes the torch at ford today. h

you.liott, thank elliott gotkine joining us from tel aviv. coming up, ready for a fight.an billionaire is the driving force between one of cycling top teams and why he thinks owning a team is better than going to a casino and going to prostitutes and owning a big yacht. ♪ . >> thank you. >> welcome back to "the pulse." here are your bloomberg top headlines. toing european governments -- bloomberg spoke in and screws of interview. him in anrg spoke to exclusive interview. airbus consultor air france and euros. it would create stability for airbus and for air france. so we can avoid this exchange rate risk. opened an sachs private lending unit in europe according to the financial times . the bank introduced the business for private wealth management clients. looking to build a $5 billion loan book within three years. ukraine's government says its forces have retaken two more eastern cities from pro-russian rebels a day after government forces regained control of another rebel stronghold. let's take a quick look at how the european markets are trading this morning. manus cra

. >> elliott gotkine joining us live from tell avirve. now to the ukraine. malaysian liner mh17 went down over the ukraine, and separatists have been accused and have denied that. >> now they say it's a missile that took bun -- down the jet. who is to blame? what happened? not all those questions about -- have been answered much the united states is trying to verify first and foremost as the president said, whether there were americans on that plane. but a lot of questions not just for the crisis in ukraine as -- itself but the rest of world as well. during a call with putin when they were discussing the latest sanctions against russia, the news broke about the plane going down in ukraine. since that time there have been a lot of questions asked up on capitol hill as well. briefings there. a short time ago, difes -- dianne feinstein is chairman of the senate intelligence committee, stepped to the microphones and had this to say. >> it's too soon to make any conclusion about the malaysian airlines crash right now. we hope to have more information within the n

in sight, i'm-- afraid. ,> thank you, elliott gotkine joining us from tel aviv. moving and shaking this morning, president barack obama. in a speech expected around 4:00 p.m., he plans to go on the offensive against the pennies who use cross-border deals -- companies who use cross-border deals to avoid taxes. the actions come understood me after a number of companies have paid big premiums in deals that allow them to pay lower rates. president obama will urge congress on curbing such avoidance is, while republicans maintain he is not done enough to negotiate with them. republicans say blocking inversions would help $17 billion from escaping the u.s.. coming up, with sanctions against russia, we have a look at how it will affect visits is operating within the country. back at home, we will look at builders like d.r. horton and look at the state of the housing recovery. stay "in the loop." ♪ >> you are watching "in the loop ," live on bloomberg television and streaming on your phone, tablet, and on bloomberg.com. what is the real deal with the housing market? permi

m elliott gotkine joining us from tel aviv. coming up the fourth anniversary of dodd frank. ofwill take a look at some the unintended consequences of the law and if any new regulations might be needed. >> what happened to the housing recovery we were expecting? the job market is booming and yet housing starts plunged last month. michael mckee has the real deal on the construction conundrum. the report we got from the national association of homebuilders on wednesday, it took homebuilder confidence way up. on thursday we got this. not only were new home sales down -- housing starts, rather, but may housing starts were also revised lower. 2%.r shares are only up it is bad for the economy. contracted and we are still short one million jobs in construction. this was, as you say, the year that housing was supposed to come back strong. the best guest of analysts and economists is we don't really know why. that is not completely true. there is a group that might have a clue. a lot of homebuilders are reporting today and a couple more later to -- later this week. there calls should

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

elliott gotkine from tel aviv. michael, you have lived through crises like this.our take on this particular one? which usedword fat, before. this has been -- the word fat, which you used before. ords has been such -- the w which you used before. this has been such a long and it issue implacable. but it is not something that affects our market. >> when might it? >> if some of the people got involved, talking serious or iran.- syria or those could be the unintended consequences. >> those threats are looming always. >> yes. >> think what a strange world we live in where we have all of those deaths happening in gaza and we can have fighting in ukraine and we talk about twitter being up and markets making new eyes. is there a strange disconnect? >> we have more information in -- moretimes information now than in our lifetimes. the step has been going on. there is a book by a harvard professor and we actually have one of the most peaceful times. a crazy word, but fewer killings of all kinds of people around the world, because we've always had bad things happening. >> it

editor elliott gotkine is in tel aviv. the cease-fire was frederick and not -- rhetoric and not reality? it andisraelis accepted posit their attacks -- paused their attacks for five or six hours until the rocket barrage became too much. there are temps in the region to broker a cease-fire. the palestinian leader is due to be in egypt. hamas. not control strip.controls the gaza it will be their decision to observe the cease-fire or not. we have seen reports from -- that 100,000 gazans have been told to leaves -- to leave their home via israelis before further strikes. a large number of women and children and the like. in israel, it was the first casualty as well. a volunteer to take food packages was critically injured in a mortar explosion. and later died from his wounds. depressingly familiar and no sign of a cease-fire. you for that roundup. let's turn to tech, apple and ibm, they are putting old rivalries to rest. -- yahoo! was keeping more of ali baba that originally anticipated. ryan chilcote and caroline hyde are her

let's go to our elliott gotkine in tel aviv over the events that changed last evening. how big of a surprise was it to see these events at about the 10:00 hour for tel aviv last night? that depends on your perspective, tom. it was a surprise in the cents earlier in the day that i named anior officials had said cease-fire brokered by egypt was in the bag, so in essence, people were taken off guard even though no one else was able to confirm those things. they were preparing for the possibility of a ground invasion throughout this conflict, so it was not completely out of the question at any point, either. >> when you look from your perspective at the last six or even eight hours, how successful has been the commission by crossingth the army the north, the navy bombarding the south part of gaza, it is it a "success"? >> i think it is very early days to tell. parts of the early this operation. according to some reports, they have only penetrated two justeters inside of gaza, staking out territory right now to decide that we what to do. the israelis said they have killed so

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 gotkine from tel aviv on -- who is the biggest 2014 albatross?e program with the chairman of the immigration task force, luis gutierrez of illinois, probably the most influential latino leader in washington.

elliott gotkine, what is the very latest on the ground where you are? >> the latest, as you say, is tanks have gone into the gaza strip. the first major ground offensive since 2009. and the mission, as prime minister netanyahu intimated there in that quote you just cited is to destroy these tunnels that hamas and other militant groups have guidugli -- dug under the ground, stretching kilometers in, order to carry out attacks. what seemed to have pushed benjamin netanyahu over the edge, since he seemed reasonably reluctant to go forward with a ground invasion, is this morning before the temporary cease-fire came into force, 13 militants emerged into israel from an underground tunnel. the israeli armed forces say they will -- they killed at least wuncht militants. israel's got an answer to the rocket fire, thanks largely to its own missile defense system, but it hasn't really got an answer to the underground tunnels. >> elliott, it's the middle of the night where you are. what are you guys preparing for over the next several hours and into the morning? >>

for more on that story, let's get out to elliott gotkine who is in tell -- in tel aviv.y hold hamas responsible and a valid retaliation action against them. bring us up to speed. >> they have. doubts the words of prime minister netanyahu and his forces to call it. some would say only the people that responsible for the kidnapping and the subsequent murder of these three teenage boys when they were out hitchhiking in the west bank earlier this month. according to media reports, is really security forces entered the homes that israeli security forces entered the homes of the main suspects and have been missing since the three teenage boys were missing and they are the prime suspects. israel said it will gain access to the homes. would've seen dozens of airstrikes and gaza as well. ip isaza strip -- str stronghold.rrorist reighnin -- reining in a militants. israel holding hamas responsible and for the murder of the teenager boys and prime minister netanyahu saying they were kidnapped and murdered in cold blood and hamas is responsible and hamas will pay. >> are we on the br

elliott gotkine joins us from the phone in tel aviv. ring us up to speed.s it escalating, is is stabilizing? what is the picture? >> i can see the gaza strip from where i am right now and i can hear it israeli artillery being fired. i have not heard any sirens in the particular area where i have been all morning, but the fighting is continuing. the casualty count, unfortunately, is continuing to rise as well. is beginningrael to feel a pinch following the cancellations from those airlines. >> this is clearly feeding into airline companies' stock prices as well. what is the outlook? do we have any gauge for the time horizon here? >> for now, this is kind of an automatic, 24-hour ban on flights after a rocket hit a place about one mile, 1.5 kilometers north of the airport. this is far and away the most important airport. all the main u.s. airlines are not flying right now. shares up sharply today, their biggest rise since april. they must take the view that they will plug the gap left by some airlines who are not flying here right now. >> thank you so much. g

we begin with elliott gotkine in tel aviv on the latest gaza. another day of intense diplomacy on the part of john kerry. he has a meeting with palestinian president mahmoud abbas, and has also met with benjamin netanyahu. if you are hoping that this would mean we have an imminent cease-fire, i'm afraid that is a little optimistic. is talking minister about more serious steps in gaza , likely to be taken with these titles that the militants use to get into gaza have been destroyed. israel is like -- unlikely to be deterred by a human human rights council putting together a commission looking into alleged war crimes on the part of israel. airlines are canceling flights to and from tel aviv. what did officials tell you? >> a couple of things. first of all, cancellations are at about 25%. you may have also noticed, shares spiked higher by five percent. the reason is investors are hoping they may get a boost because people cannot fly with any other major airline right now. about 31 canceled flights today. they said to me that the boost to revenue fr

elliott gotkine is live in tel aviv. what is the latest on this?nvasion --nd ground offensive i should say began at around 10:00 p.m. local time last night. thousands of shoulders -- soldiers backed by tanks and heavy artillery moving in. this grainy video posted by the defense forces showing these tanks and soldiers moving in. we understand that so far one israeli soldier has been killed. intouthorities are looking the possibility that he might have been killed by so-called friendly fire. there have been about three injuries, about 20 hamas militants reportedly killed. the objective is to primarily destroy these subterranean tunnels that militant groups have been trying to use to infiltrate israel. that was the tipping point for prime minister netanyahu to go ahead with this ground invasion. yesterday, about 30 militants managed to get into israel through underground tunnels. one of them was killed. the others fled back into the gaza strip. israel has an answer to the rocket fire. it is much harder to deal with these underground tunnels because it

elliott gotkine from tel aviv on -- and margaret carlson and ramesh ponnuru on who is the biggest 2014s? we begin the program with the chairman of the immigration task force, luis gutierrez of illinois, probably the most influential latino leader in

elliott gotkine from tel aviv on -- who is the biggest 2014 albatross? the program with the chairman of the immigration task force, luis gutierrez of

elliott gotkine is live in tel aviv. do you think john kerry will be able to broker a cease-fire? he would not come to the region if he did not think he could have some impact in recurring this truce. only offer on the the table is the same as last week. the egyptian-sponsored cease-fire. make thes needs to decision to spare innocent civilians from this violence. hamas is saying not only do we want the border crossings to and from gaza, we want them open and we want the prisoners, the members of thomas that were rounded up when israel was looking for the suspected murderers. hamas is tofor accept the same reject -- offer they rejected last week. so it is hard to see how they could accept the same deal now that they rejected last week when they had not achieved anything. >> the fighting continues. what is the impact on israel's airline industry? from eld a statement al. saying third-quarter revenues could be hit by of $250 million. not just people canceling their reservations. not just people who are not going to be coming to israel. is really seemed to be staying at home as well.

onfor more on the latest israel, we are joined by elliott gotkine.this mean we're closer to a ground invasion? >> there's still no decision. thee are tank brigades on border. a ground invasion is within the capacity of israel. hartman and stirred netanyahu speaking in a press conference was saying we will not stop until we have read israel of the threat. israel wants the rocket fire to cease. a number of air raid sirens this morning. israel is carrying out attacks on the gaza strip. the death toll is rising still. we are above the 200 mark according to health ministry officials. israelihad our first casualty. a voluntary -- a volunteer taking food parcels to troops. critically injured in a mortar explosion. >> to save. -- stay safe. >> volkswagen is ramping up capacity in north america while promising to cut costs. a year.n euros hans nichols joins us in berlin. what is behind the plan? they're setting the benchmark pretty high. >> high labor costs, no one disputes that volkswagen does a and job at reducing cars producing cars that people like but th