Tensions around the world that sent shockwaves through out the markets. Investors are pricing in the rising geopolitical risk. Look at whats your is moving around the world. We need to start with europe. 600 falling for second day, but losses are moderating a little bit. Yesterday they were reacting to the sanctions by the u. S. And European Union and the hit on mh17. What you see in russia is a continued selloff, down 1. 08 i was speaking with hans humes, he said there was no real bid and russian strokes stocks yesterday. A little bit of moderation in selling this morning as people continue to try to get more headlines that figure out where Vladimir Putin and russia stands in this blame game taking place between ukraine and russia. In the emerging markets, down, moderate declines. Hans humes says the emerging markets are so large this really isnt putting that much of a black mark on stocks overall. , this wasf the u. S. The s p 500 yesterday. You can he we ended down 1. 2 , the biggest drop since april. It was a down day for u. S. Stocks, pretty steep drop. It doesnt sound like a lot, but the Stock Market Index has not really moved that much and about 60 trading days. Relatively speaking, it was quite large. Futures bouncing back a little bit this morning, up by two points when it comes to the s p. That has been fluctuating. It is not clear whether that will open higher. Earnings are resolving as well. I want to point out the vix. With the selloff yesterday, we saw a spike to 14. 54. That is the biggest oneday jump in a year and a quarter since april 2013. Certainly, a large group. When you look at how it is that historically overall, this is a telling chart from goldman sachs. It is fairly all quiet on the equity front when it comes to the vix overall. You has a big spikes in 2008 and right around when the u. S. Credit rating was downgraded. Yesterdays move does not even make a dent as we are in is very low volatility environment. Liquidity seems to be trumping everything else. The central bank will be standing by to put more money into these systems. Clearly, investors are just waiting for the latest developments to see where theyre going to move next. Thank you so much. As we have been reporting, malaysia air flight 17 was shot down yesterday on the border of russia and ukraine. International outcry has erupted. Ukraine and russia putting the blame at each other. Angela merkel for an impartial probe a few hours ago. For more on the crash, we go to kiev. Latest tellhe us the latest at the crash site. Theres conflicting reports about whether or not the black boxes have been found from the jet. That is right. Some of the rebels reported they had recovered those black ox is. Boxesack box or two black and it would be sent to moscow. Another group of rebels are saying in fact they have not recovered the black boxes. In addition, getting reports on the recovery of bodies from the scene. 181inian officials saying bodies have been recovered. 298 people died in the crash. Dont forget, the crash site is in rebelheld territory. Ukrainian Central Government officials, the Ukrainian Military, cannot go there. Those bodies will be transferred to the city under the control of the Central Government. Interpol has been invited to go to the city to justify those bodies. That is presumably where many of the relatives who are already arriving in kiev, many coming without their travel visas, are going to begin traveling to. You get a sense of how complicated it is to work at this crash site. Given the fact it is smack in the middle of a war zone. It is a very complicated situation, figuring out who exactly, what side, who launched the missile. Is the latest intelligence on that front as to who is to blame for this . We are getting some serious accusations coming from Ukraine State Security Service saying they believe there were three russian servicemen, three citizens of the Russian Federation not russian rebels, but people who came over from russia, part of the russian military, inside of this surfacetoair Missile System that the ukrainians allege the rebels used to attack that mh17 flight. Theyre demanding the kremlin name those three russian servicemen who, as they put it, pressed the button. In addition to that, ukrainian officials are saying they have arrested two russian citizens on the border inside ukraine. One of them carrying documents digesting he was a missile operator suggesting he was a missile operator. You can see the situation is escalating as both russia and ukraine point the finger at one another. Thank you so much we will hear more from you on this developing story, ryan chilcote. Another developing story, Benjamin Netanyahu has ordered a ground operation against the hamas controlled area of the gaza strip after airstrikes failed to stop the hamas Militants Attack over the last 10 days. Elliere on the invasion, goss can joining me from tel aviv. Tell me what is the latest there . This ground offensive began at 10 p. M. Last night and Prime Minister netanyahu talking about potentially broadening that operation saying the ultimate aim is to restore peace to israel. That includes attacking rocket launchers and militants themselves. In particular, destroying these tunnels which militants have been using to try to infiltrate into israel to carry out attacks. So far, according to the Israeli Military, that killed 17 militants and arrested 13. As this operation continues, there will be growing concern about the potential for civilian. Asualties already, there are Something Like 260 palestinian deaths, more than half of which were civilians, according to the united nations. Some countries have come out in support of israels right to describe defend itself. Turkey has been the most outspoken. The Prime Minister has come out and said israel is a state that knows best how to kill children, saying that israel is committing genocide and hamas is a party to the conflict, therefore, needs to be included in talks. Perhaps a sideswipe at egypt for not including them as in ceasefire discussions. Israel hasso add, told families of diplomats in turkey to evacuate missions at the simple and ankara. Windows were broken and the palestinian flag was planted. I believe this is the third invasion we have seen and a third operation the last six years between israel and hamas. What about the neighbors . Qatar,h more can egypt, and others, what can they do to broker some kind of a ceasefire that will last . Ordinarily, you would be looking for an independent broker, someone who can mediate and respected by both problem parties. That is a problem. It was egypt. They were on the same page and could do business. Really, turkey is not an objective observers. Qatar is not seen as an objective observers. Someone mentioned the norwegians. Elliott, thank you so much. Moving and shaking the sour, former secretary of state Hillary Clinton. She told charlie rose that hamas may feel like it has nothing to lose by firing missiles at israel. Clinton says there has been a lot of outreach to mass, trying to get the group to stand down. Charlie rose asked her what is different about this situation. The numbers of missiles has increased. I think that israels assessment is with the stockpiles of weapons that are now in gaza, that it would be difficult to get a reliable ceasefire. Egypt did announce a ceasefire. Israel immediately said yes and hamas said no. Youll hear much more from clinton to rub the rest of the program and you can watch all of charlie roses interview with Hillary Clinton tonight at 8 00 and 10 00 p. M. The Obama Administration is having to deal with the Israel Offensive as well as the downing of the malaysian flight. Peter cook is at the white house with more. First off, what is the u. S. s take on israels military moves here . The most direct to medication we are aware of at this point, secretary kerry speaking with Prime Minister netanyahu yesterday after the offensive was launched and saying in a statement or read out of that conversation, the u. S. Strongly supports israels right to defend itself by going on to say the u. S. Is encouraging this to be a limited, precise action targeting those titles for specifically titles, specifically hamas was using to get into israel, hoping there could be some sort of limitation here certainly in terms of civilian casualties. The u. S. Urging restraint. At the same time, making it clear israel has the right to defend itself. How long will this last . Major ground offensive in 2008 lasted more than three weeks and more than 1400 people died. On ukraine, does the was 70 veteran intelligence on who down the malaysian plane . At this point, u. S. Military and intelligence officials will only say they believe a russianmade missile was what to cap that plane, but they dont whereow who fired it and it originated from. Those are questions i am told ultimately can be answered through satellite imagery, perhaps breaking down some of the communications that took place at the time of the missile launch. But at a minimum, the u. S. Is turning him turning up more pressure on russia. Josh earnest overnight said in a statement in part, we do not yet have all the facts but we know this occurred in the context of a crisis in ukraine fueled by Russian Support for the separatist including two arms, material, and training. The pressure is ramping up. A lot of questions to be answered. One of them, what role do the russians play . How did this Missile System get into that location . And now the question for the u. S. , what happens next . Is this an escalation of sanctions or Something Else . Peter, thank you so much. Coming up, the International Response. What should be done about the shooting down of the commercial jet. We will talk with a House Armed ServicesSenior Member congressman mike turner. Lawmakers are for more action in response the malaysian jetliner crash. One congressman has taken a more aggressive approach saying swift and decisive response from the International Community is imperative. He joins me with more, mike turner of ohio, member of the Armed Services committee. Thank you so much for joining us. Tell us first if you have any more intelligence as to who brought down this plane. I do not. I know Additional Information will have to be reviewed. There are a number of concerns everyone has as to what did occur. We have to put it in context. And awas a fighter jet helicopter that were already taken down in this area. All of the blame points to Vladimir Putin. He is open a war zone in the middle of the russian area that borders on ukraine. With those responsibilities of having ukraine become a war zone. I think Vladimir Putin bears the responsibility. What do you think the u. S. Response should be . The president has already acknowledged by increasing sanctions that russia has already crossed the border into ukraine. Russians are on the ground and equipment moving back and forth in support for the russian separatists. The issue next, what does the u. S. Do next to help the government of ukraine . Ukraine is in a very disadvantaged position. They could utilize american support and assistance as they try to impact and lesson what really is an International Crisis of a war zone opening up in europe. That assistance in the form of arms . Should we be arming the Ukrainian Government . I think in addition to the issue of looking to arms for ukraine, even Technical Assistance as to where the rebels are, what theyre doing, what the operations are, the u. S. Has high fidelity as to what is occurring in this area. This information should be shared with ukraine so they can defend themselves. Vladimir putin needs to be held accountable. This plane came down as a result of Vladimir Putin deciding whos going to open a war zone in europe. He needs to pay a price for that and certainly all of our allies need to come together jointly. We have seen sanctions against several russian companies. How much further do think the president needs to take those sanctions and how do we get the europeans who have been quite hesitant to move as aggressively as youre talking about, how do we get them to ally with us . That is an excellent point. Sanctions are dialed you turn up slowly. The president has taken it up to have notches. The europeans are clearly seeing the effects of the conflict as a result of what is happening in ukraine. The netherlands it will have a great voice in the you to be able to call e. U. To call to the attention of europe that they now have a war zone. Congressman, back to the missile,who fired this the fact of the matter is, i think many people woke up to the fact that rebels whoever they may be have the equipment, that they have this equipment now that can launch longrange missiles to take down a jet at more than 30,000 feet. Wasdy had any idea that possible up until yesterday. The question now is, what happens if that equipment, if that missile is in the hands of others . Terrorists . Is anyone else looking at that . Absolutely. Those are the issues that go to the responsibility of Vladimir Putin. As you have this issue of what happens when you open a war zone in europe him a these are the types of consequences. They bear the responsibility for that. When you put it in context the fact a transport plane, fighter jet, and two helicopters had a ready been taken down in this area that europe is waking up to now with this airline being taken down, action needs to be taken. Do you think it will be the kind of action that will put this conflict to end . So. Certainly hope i think Vladimir Putin has enjoyed the falls centered the west is had that russia is not an aggressive state. That they in fact could be an ally. As they turned a look at russia differently, i think both in commercial transactions in normal political relationships, all of these things need to be impacted and certainly, Vladimir Putin needs to realize he has taken a step outside the International Community. Thank you, congressman mike turner. Is this a turning point in the fighting in ukraine . Well hear much more from another clinton. Back on corporate news, fedex rocked by government indictment. The owner accused in the legal in drug conspiracy. Much more in the loop. You are watching in the loop. Good morning, i am betty liu. Top corporate headlines, General Electric reporting psychic order earnings that matched estimates. Reporting secondquarter earnings that matched estimates. The plan to take it finance unit of north America Public at the end of this month. Google posted secondquarter sales that beat wall street estimates. More. Icks rose 33 fedex rejecting government charges of illegal drug trafficking. Includeses is it pain pills another illegal drugs. Fedex has a camera responsible for the minds of packages and delivers every day. Equity futures are rebounding just slightly. Investors carefully watching what is going on both in ukraine and in the gaza strip as a of the discounts geopolitical risks. At the same time, watching earnings which is why youre seeing some stability here in equity futures. We are on the markets again in 30 minutes. I want to get more perspective on the situation in ukraine where the country and russia are blaming each other for the downing of the Malaysia Airlines jet that killed almost 300 people on board. The incident may prove to be a turning point in the fivemonth conflict between both countries. Hillary clinton gave her perspective on what could have happened to the plane with an interview on charlie rose. That may begin with the news of the day, the plane shot down over Eastern Ukraine. What questions would you be asking at this moment . Well, the questions i would be asking is, number one, who could have shot it down . Who had the equipment . It is obviously an antiaircraft missile. Who could have had the expertise to do that . Commercial airlines are big targets, but by the time they got over that part of ukraine, they shouldve been high, so it takes some planning. And the Ukrainian Government has been quick to blame it on which theyre never the russian insurgents. Their name for the russian insurgents. There seems to be growing awareness of probably had to be russian insurgents. How would determine that will require some for rent six, but then if there is evidence pointing in that direction, the equipment had to have come from russia. What more, the russians may or may not have done, we dont know. Today as i was walking in to talk with you the russian stock market has dropped. Theres a great deal of concern that not only was it a civilian plane shot down, but what this means about the continuing conflict in Eastern Ukraine and the role that russia is playing. What does the United States do if there is a clear indication and clear evidence it was russian separatists and perhaps using weapons from russia . I think the first question is, what does europe do . The u. S. Has been very clear in both its criticism of russia and putin, his support for ukrainian and the new government. Theres been a new round of sanctions that resident obama himself has announced. As you know, the europeans have tried to figure out the best way forward. I was recently in europe. A lot of questions about whether or not russia was really the aggressor, whether or not putin was really dangerous, how could that be evaluated . From my perspective, and i the benefit of not being in the government, if there is evidence linking russia to this, that should inspire europeans to do much more on three counts. One, tough and on sanctions and make it clear there has to be a price to pay. Number two, immediately tolerate efforts and announced theyre doing such a fine alternatives in gazprom. Russia still largely dependent upon natural resources, principally gas and oil. Thirdly, do more in concert with us to support the ukrainians. There has to be more help on their borders in order to prevent do more to help their military obtain better equipment, better training. The Ukrainian Military has been much more focused and successful under poroshenko. Nobody kids themselves. If russia keeps weighing in, there was a lot more that needs to be done. Twoputt putin on notice that he has gone too far and we are not by. G to stand idly the europeans have to take the lead on this. It was a flight from amsterdam to kuala lumpur. There should be outrage in european capitals. And therefore action. If it comes to this, do you think that putin is willing to take more risks than ever before with respect to the ukraine and do you believe that sanctions will have the power to restrain him . I think putin is pushing the envelope as far as he thinks he can. I think he has obviously annexed and occupied crimea. He is willing to keep ukraine unstable in order to try to intimidate the new Ukrainian Government to back off from their approach to the eu. And i think the only language he understands is one that is very tough, very patient, very clear. The sanctions are an important piece of that. That they arence having an effect. Sanctions alone will not weresarily restrain him changes calculus. I would like to see the europeans do what i urged them to do, come up with some alternative Energy Strategy that does not leave you to the mercy of food and putin and gas prompt. Gasprom. You can watch that entire interview tonight on Bloomberg Television. Aght now, we are monitoring News Conference in amsterdam where Malaysian Airlines officials are giving up hits on the plane that was shot down over ukraine. Here is what the head of the european operation is telling reporters right now. He said he confirms that the airplane was instructed to fly at 33,000 feet, but that are requested to fly at 35,000 feet. He noted that there were 189 passengers on the plane that alone were from the netherlands. He said that the airplane itself had a clean maintenance record. His is a boeing 777. To their knowledge, there were no technical issues with this plane. Malaysian airlines will be giving 5,000 per passenger. Boardwere 289 people on including the crew. We will continue to monitor this event and bring you more headlines coming out both in europe and in asia. Coming up, one area where we have seen the u. S. And russia cooperate is in space. How some space experts in the u. S. Say our use of Russian Rocket engines is jeopardizing national security. There are only a handful of firepower toh the take down a passenger plane. Russia is one of them. What happens to terrorists if they are handed one of those systems . As tensions rise between the u. S. And russia over the downed malaysian jet, the sanctions the u. S. Earlier this week, one area of cooperation has been in space. Space experts are saying that the use of Russian Rockets could jeopardize national security. Lot ispany that knows a Sierra Nevada corporation. Testpassed a nasa design with in a competition with a boeing led group and spacex. Mark, great to have you here with us. Spoken with elon musk over the years, where he said part of his motivation for spacex is building rockets here he has said it is good for our own country, it is good for national security. He said, we should not be using Russian Rockets to send our astronauts to space. I think we agree on that point. We have been working for a number of years to bring brack back the building to the United States. That is the competition we are in right now. How Much Technology do we use from russia . Do you know . It is quite limited. One of the rockets we use has a russian engine in it. We received those engines as a result of a Nuclear Treaty we had years ago, when we bought back those engines and continue to use them. Moneyss has appropriated for the production to be looked at here in the United States going forward. How much of our technology that we developed here, technology around rockets or around missiles or what not, how much of that technology do we transfer over to russia . Very little. None of it. We have cooperation in space. We both cohabit and Work Together on the space station. That has not stopped. That has not stopped. Is that the russians are bringing on american astronauts into the space station on russian spacecraft. We are looking to bring that back onto United States. This is something you would like to do on your own. We have been building a modern, smaller version of the Space Shuttle for a number of years. We have had for different competitions with nasa. We are in the final stage of doing that. Our vehicle has been designed. We are very close. Launch will be november 2016 to go to orbit. Is that considered faster than when we were doing it ourselves through the nasa Space Shuttle program . It is much more cost effective. I dont know if it is faster. It has been a lot more cooperative. We have employment in 30 states. We call it our dream team from around the United States. A much cheaper are we doing it ourselves . Multiples. Different vehicles. The Space Shuttle is much like a moving van. We are more like an suv. Withn take seven people cargo and crew back and forth. They are different concepts. Differenceest between yours and spacex and the boeing led group, what is the biggest difference . Capsule,d spacex use a very similar to how we went to the moon. We use a shuttle. We have no Hazardous Materials onboard the vehicle. Thank you so much. Great to have you with us. Youre welcome. Thank you for having me. Coming up, runaways. Another American Company has moved its legal residence overseas. Welcome back. Is bloomberg big number 54. 8 million. It is the latest in a string of u. S. Companies shifting tax revenues abroad during a record surge of m a. Taxesl only pay 13 compared to 22 it paid in the u. S. Abbvie made several offers. For 54. 8ed scheier billion. 54. 8 billion dollars. I want to bring in olivia sterns. This comes amid a huge surge in deals. A lot of people are wondering is this really just for tax reasons or is there a key strategy here . The way to look at it is that abbvie would not have gone for a big takeover target if there were not for the tax benefit, but there is a reason. Shire has a couple of Rare Disease Drugs that are very lucrative. They also have a promising drug for adhd which is a growth industry. Abbvie needed to do a big deal because they are so heavily dependent on this one drug which is for arthritis which is a 14 billion drug for them. It brings in half the revenue. They were going to do a deal. Lawmakerstable for to get out of paying taxes. You have an obligation to shareholders though. There are several lawmakers who have woken up to this move and have said, we are not going to let this happen. They all will cup when they saw pfizer trying to buy astrazeneca. They are awake to the threat. To congress this week. He wants to see action immediately. He is talking about a retroactive law. Ron wyden says he has a bill. Has beenhat the holdup about. This is the fifth time they have put forth a bit. A bid. A very hefty breakup fee of 3 , reflecting a fear that something could happen to break down the deal, such as lawmakers coming in and taking away the tax incentive. Anything else to derail the deal . No. They dont have a lot of overlap in their portfolio. It is just the economic logic is lost because Congress Says you cannot actually do this. That does jeopardize the outlook. Thank you so much. Coming up, tiger woods missed the last two major tournaments due to a nagging back injury. He is now ranked seventh in the world. You wouldnt know it by the roundtheclock coverage she is getting at the british open. It opened up yesterday. One of the main reasons why fox covets time warner is sports. Athletes like tiger woods dominate the screen. That is exactly what is happening at the british open. Espn comes out a winner, tracking boatloads of eyeballs and dollars. Leeto bring in liber, burke. Lee, lets start with you. You see some of these parallels with the at tdirectv merger and the whole sunday nfl ticket right here. One of the whole reasons why fox covets time warner is the sports. Time warner has a great relationship with the nba through turner. It has the ncaa tournament. Hbo has championship boxing. Majorly as ball Major League Baseball is on turner. You have the sports rights. Fox could be competitive with espn very quickly. As a result, the nba itself could be entering into an nba nfl sunday ticket moment. To acquire nfl sunday ticket. If you are turner, you want to obtain or retain nba rights. Absolutely. Absolutely. Fox is interested in those rights as well. They will only get the rights if they pass through the exclusive window that turner and espn have. If fox goes to time warner, it gets those nba rights. And there you go. Espn wants this really badly. , that is going to be one of the big contracts they will bid for. What has been the problem with fox sports one . At an ohfer does a problem. It is just young. It does not have the power that espn has. Is there going to be a company that steps up and challenges espn . We have not seen that yet. You might need a combination in order to stack up against espn. Woods isof espn, tiger going to be the star at the british open even though he is ranked seventh in golf. What is the moneymaking for espn . Tiger woods may not be the best golfer in the world anymore, but he is the most fascinating golfer. Everyone wants to see would he does, how he reacts, how he plays. In a multiplatform uniforms were your ratings are driven for golf , he has his own platform. They are creating essentially a tiger woods platform on espn on their overthetop service. That way fans can follow tiger woods from the first through the 18th hole. That is where the ratings are. That is where the interest is. Even among casual fans. You want to see tiger woods playeds plays golf. Rating spike when he gets on the course. We sought with majors saw it with majors earlier this year. The u. S. Open was the lowest rated and 22 years. When tiger woods is playing, more people watch. As tiger woods goes, golf goes. Been able toe has replace him or get to that level. The reality is with golf. There was a big three back in the 60s and 70s. Palmer, nicholas, player. Now you are looking at tiger woods, maybe phil mickelson. Has certainly made himself well known outside of golf. People want to see what he does. That is the person who will derive your ratings. Last year, tiger woods was the highestpaid athlete. He slipped this year to number six according to forbes. Floyd mayweather is number one. You have others like lebron james, leah no messy lionel messi. Playing poorly, like he did yesterday, what does that mean for his sponsorship . As long as he is playing, he will be the highest sponsored golfer out there. It is kind of like Roger Federer in tennis. No matter what nadal, djokovic, and Federer Andy Murray do, Roger Federer will always outpace them in terms of earnings. Tiger woods will be number one in terms of sponsorships. He has 114 majors. The next nearest golfer won 14 majors. The next nearest golfer has a fraction of that. He has his relationship with lindsey vonn. Ofhas a long track record exciting performances. Even if he doesnt perform to that level that he was before, he still is going to be . Look at Michael Jordan who has not played basketball in over a decade and he is still one of the highestpaid athletes. Maybe you should quit while you are ahead. Itif tiger does not do well, will be tiger woods loses the british open. Exactly. Thank you for joining us. Thank you to our bloomberg Sports Reporter as well. It is 56 minutes past the hour. Bloomberg television is on the markets. S p futures are rebounding, but not by much. On earningss domestically. Investors have one eye on what is going on overseas in the ukraine and also in israel. We will keep you updated on all of those fastmoving developments. On the markets again in 30 minutes. Coming up, investigators begin to enter ukraine. Well talk about the consequences for russianu. S. Relationship relations. We will talk about intelligence gathering. Israeli Ground Forces moving into gaza. What should be the International Response . You are watching in the loop. Life on Bloomberg Television. We are about 30 minutes away from the opening bell. You are in the loop. Stocks bounced back a little bit. After their worst oneday loss in equities. Israels military is preparing to broaden its attack against hamas militants in the gaza strip. In the meantime, ukraine claims that prorussian rebels shot down the malaysian passenger jet yesterday. On the corporate front, abbvie has agreed to buy shire for almost 55 billion. I will allow abb that will allow abbvie to pay less taxes in moving its headquarters to the u. K. Attack being scrutinized by world leaders, the turkish Prime Minister lashing out, calling those actions genocide. For more on the political military conflict, i am joined by elliott gotkine. The Israeli Military has already claimed successes in their ground invasion. They are. We are about 18 hours into this operation. It began 10 00 p. M. Local time. Defense Ministry Said they have killed 17 militants and detained 13. They have found rocket launchers and tamils. The ultimate aim is to restore peace to israel. The means to try to stop rockets being fired from the gaza strip for populations in israel. How long could this operation last . Be army and the Prime Minister are pointing out that there is no deadline. This is an openended operation. It will be finished when the operation has met its targets. Which are really to stop the rockets being fired into israel. In particular, to destroy the underground tunnels that enable militants to come inside of israel to try to carry out attacks. Military Missile Defense system has an answer to the rockets. Dealing with those tunnels is much, much harder. That is the main reason why we now have thousands of israeli boots on the ground in gaza. As you had pointed out to us, we have seen some of their thisbors lashing out at Israeli Military move, including the Prime Minister of turkey, who called this genocide and said that israel knows how to kill children. You have pointed out, it is difficult to see who was going to broker any kind of peace talks between the two. What is going to be the diplomatic solution here . Eventually, everyone knows there will have to be a ceasefire at some point because this is not something that can go on without end. It seems like a very long time ago that turkey and israel were staunch allies. Now, turkey has just repeatedly come out against israel. Missions inic turkey are being scaled down. There were attacks after propalestinian protests. The Prime Minister will come in to broker this egypt will be the best bet. It may take more than one country. Back to you. Thank you so much. Lets dig deeper into the tensions in israel in the gaza strip. Hillary clinton talk to charlie rose. Meantime, the difficulty in getting hamas to stand down may stem from how deeply divided the organization is. I want to bring in a Foreign Policy analyst at the center for American Progress who specializes in middle eastern affairs. Ryan, first off, what is there has to be some sort of ceasefire. The one from yesterday lasted only five hours. What needs to be done to get the ceasefire, at least this stage, to an end . You need hamas and other groups in gaza to agree to stop firing rockets. What israel is trying to do right now is to eliminate the dangerous arsenal that hamas has amassed. In the long term, if the broader issues of commerce aspects commerce, access to gaza hamas is trying to negotiate through violence if those issues are not resolved, we are going to see a replay of this. Several we have seen several times over the last several years where flareups like this have happened. Ofause of the extremism hamas and the lack of a framework in that area of the world. What are we talking about in terms of framework . In essence, the things that secretary of state john kerry was trying to push. We really dont have strong winners among the palestinian or israeli leaders who are willing to wage for peace as opposed to wage for work. It is so easy for the parties to wage war. We need a framework where people can live and work. I used to work in the gaza strip. It is the most densely populated place on the face of the earth. The vast majority of people there just want a decent life. The militants are wrecking it for everyone. There are deeper and deeper divisions within the hamas militant factions. Talk to me about the division. What are we talking about . The Main Division is that there is a political wing that has been engaged in some of the diplomacy you have been talking about. It is still engaged with egypt, tar, with turkey. There is an armed wing. It has been splintering. What we have seen over the last amassing is movements tremendous arsenals of rockets. More than 1000 have been lobbed in. There are about 10,000 in the gaza strip right now. We were speaking with congressman mike turner from the House Armed Services committee. He fully supports israel. The course of his time in the House Armed Services committee, he had approved funds for the iron dome, which has withheld many of those attacks from the militants. U. S. s role and how Something Like that complicates the ability of the u. S. To get involved to broker some sort of diplomatic solution here. At this point, the u. S. Is still the dominant leader in the region. It has got more relationships with more actors than israel or egypt or anyone else. We are going to have to work with partners. Ironsupport of israel, the dome and the antimissile battery, that is necessary. We have to help israel protect itself. Israel and the palestinians have to help themselves. If theres anything to be drawn from the latest conflict is it is that the effort to wage peace is essential. How long does this phase of the operation and as you this is one of three that we have seen over the last 56 years. How long can this last . This could last for weeks. Noty view, israel has identified a clear and goal. It wants the rockets to stop. If there are more than 10,000 of them and there are thousands of militants in gaza, it is a real question about how openended this will be. My bet is that they will not go too far. The cost of reoccupying gaza would be far too high. Is somethingeeing that hopefully will not last for a few more days or weeks. Much, brian. So for a policy analyst at the center for American Progress in washington. Earlier in our program, you heard secretary of state Hillary Clinton on the situation in gaza. She also talked about the downing of the Malaysian Airliner in ukraine. Say is what clinton had to about russian president Vladimir Putins role in all of this. I think he is pushing the envelope as far as he can. I think he has annexed and occupied crimea. He is willing to keep ukraine unstable in order to try to intimidate the Ukrainian Government to back off from their approach to the European Union. I think the only language he verystands is one that is tough, very patient, very clear. Are an important piece of that. There is evidence that they are having an effect. Sanctions alone will not necessarily restrain him or changes calculus. Watch all of charlie roses interview with Hillary Clinton tonight here on Bloomberg Television at 8 00 p. M. And 10 00 p. M. Eastern time. The threat to commercial aviation may not be limited to ukraine. We will talk about the fallout from the Malaysian Air disaster. We are switching over to all things tech come from google to hewlettpackard. It was a big day in silicon valley. We will keep our eyes on the developments overseas. You are watching in the loop live. We heard from Malaysian Airlines officials. They confirmed that the jet was flying at 33,000 feet. A request was made to fly at 35,000 feet by the pilot. The crash is raising more fears about whether other commercial jetliners or home herbal to vulnerable to attacks. John am a we also heard from that theirfficials airplanes are completely avoiding ukraine airspace along with many other commercial airlines. What did yesterday tell you . It showed that a certain rebel groups or other governments do not properly identify aircraft in their airspace, then an incident like this can happen. There are only a few place in that have this type of military armament that can bring down an aircraft at that level. This raises a whole new threat to civilian aircraft that are flying over that airspace. Did it make any difference, the fact that the malaysian jet was at 33,000 feet. We now know that it had requested to fly 35,000 feet. What do we glean from that . Nothing. That is a normal air Traffic Control issue. It could have been more stable air at 33,000 feet. This missile is capable of bringing down aircraft at 72,000 feet. This is not something that could have been done from a shoulder launched missile. The range on that is about 15,000 feet. What would you advise those who are traveling overseas . They have to use prudence. They have to know where they are going, wrote while what routes they are taking. The airlines are going to avoid that airspace and rightfully so. Thing as corporations and their travelers need to know where people are going, why theyre going there, how they can probably track them to mitigate risk and to monitor movement appropriately so that they can take them out of harms way. To we know that airspace above ukraine . That an area that airplanes have tried to avoid before or that it was contentious . A pretty safeed fly zone . It is an absolutely safe fly zone. It was until yesterday. This is a normal flight path with many different flight routes in the world. It was not advised to be avoided. There were not threats to commercial airliners. We know that the ukrainian were engaging in conflict against aircraft against ukraine. But those were fighter jets and military cargo jets that were being targeted. Commercialthreatened aircraft or private aircraft. Thank you so much for joining us. John rose. Coming up, it has been a big week for global markets. We will take you through the markets. Jim oneill will be taking us through the opening bell. It has been a tech bonanza this week. Bloomberg news editor cory johnson has been on all of the major tech news that has been issued out alongside earnings. Lets start off with google and their results. Earningspershare can sometimes be confusing because the company will have really big swings in what they will do with things because of r d. The numbers to look at are some of the interior numbers. Revenue growth, 14 . Accelerating Revenue Growth rates. That is impressive. Website isbasic seeing improving results. We are also seeing improving results on the number of clicks the company is getting. Mobile ads get less revenue per ad than ads on the internet or the desktop. Of were seeing so much more them. We are seeing continued growth the google. Mobilelowing ad rates of are not going to look so bad at some point. Clearly, mobile ad growth is growing tremendously. On the ibm front, after the inked their deal with apple, their sales continue to fall. Lets talk about the ibm results. These results require some analysis and understanding. This topline number. We see ibm as a company that is shrinking and shrinking and shrinking some more. The sales line on a yearoveryear basis of been declining. Going all the way back to the end of 2011. We have not seen any sales growth in this company. They have been buying back shares like crazy to improve earningspershare. That is really not actual growth. Were talking about increasing Gross Margins perhaps. I want to point out something that people miss. Ibm changed their tax rates. Per year before. 20 yesterday. You might be thinking, big deal. First of all, these are not cash taxes. If they had not made that change , they would have missed the quarter on earningspershare. Cory johnson, thank you. Our editor at large on bloomberg west. We have the top 10 trades you do not want to miss after the break. Keep it here on in the loop. Past the26 minutes hour. A Bloomberg Television is on the markets. Scarlet fu has much more at the open. What a market trading week it has been. It has been pretty volatile, relatively speaking. 500 down. This morning, a bounce back. Futures up by almost four points. We are looking at the growing tensions in ukraine and the middle east. That is keeping european stocks in the red. Losses have moderated since yesterday, when it was down about 0. 9 . Treasuries are lower. Yields are higher. The result, you were seeing dollar moved toward began the yen. We will keep an eye on the safe haven. We go back on the markets once again in 30 minutes. Lets count down to the open with the top 10. The only stores you need to know today. Lets start with number 10. The Hospice Care Service company has been resisting a hospital takeover. It says it has another suitor. Willy that gentiva resisting hostile takeover, but it is now looking at an offer. It is not naming the bidder. Amazon unveiling a new service. Letting customers binge on books like they do with their favorite tv shows on netflix. Cano unlimited includes over 600,000 books. Unlimited includes over 600,000 books. Beating estimates, but sailed failed to impress investors. They see a more cautious outlook. Mcdonalds. A federal agency is investigating if they were fired for joining labor unions. Mcdonalds has been under increasing pressure to raise wages and made National Protests and strikes. They are looking for that 15 per hour minimum wage. The chipmakers thirdquarter sales jumped 35 . Earnings growth rob did oppenheimer to raise a price target on the stock. Shares are surging on the news. Reporting electric earnings that matched wall street estimates. Revenue is up by about 3 . The results and a quarter when jeff him out made the biggest acquisition in ges history. We listened in on the call and integration is the key question. Honeywell. The industrial conglomerate reported a 8 jump in quarterly profit, beating estimates. Honeywell also raised the lower end of its fullyear forecast. Lets get to some tech. Advanced micro devices. They missed analyst estimates. Theyre losing to intel. D said secondquarter sales in its Computing Solutions unit fell 20 from a year ago. Number two is google. Topped estimates due to ad sales. The number of clicked on ads on youtube searches increased 33 . That made up for a drop in ad prices. Number one is abbvie. They have finally sealed the deal. They agreed to by dublinbased shire. It is the latest American Health care company to move its legal residence abroad in order to get a tax cut. Morning, aopen this very volatile trading week. I want to bring in renowned investor and economist jim oneill. He was the chief economist at goldman sachs. Garlic who is staying with me and mike mckee joins in as well. Guys, i want to kick off the conversation on yesterday. We all knew that these risks were out there. More,oubled up even seeing what happened in israel, but also what happened with the downed malaysian jet. Jim, let me start with you and whether the risk factor has gotten even higher now that we have seen these developments. I like the fact that you described me as a renowned investor. [laughter] i dont know if i can justify it. We are generous in our titles. [laughter] i have to say, the past couple of weeks i have started to feel more and more nervous. I am looking at a bit of a distance compared to the old days. As the market in the u. S. Has crept higher, the fed rhetoric has started to shift and yellens testimony the other day was as dovish as it could have been. Closer orcreeping changing the profile to move what the market is, you have got to be careful. Nevermind the renewed turbulence in europe. Surprising that you get the market tumbling like it has done when you get the horrible shocks out of the blue like we have done. Jim, does mike. U. S. Markets have shrugged this off after yesterdays losses. European markets are down. There has been concern over the past couple of weeks about the fundamentals in europe. Given how widespread the impact is to allaysian crash of these countries, could there be a Tipping Point for europe . You know, the billion, trillion euro question. Because of the sheer horror of this terrible incident yesterday , i dont think one can exclude the possibility that there is some possible ceasefire between Hostile Forces in the ukraine. It certainly seems to me that it is virtually impossible for putin to could continue on with his mischievous and clever pursuit. In providing weapons to the Fire Fighters in Eastern Ukraine. It seems to me that is no longer a credible thing for him to do. If that is right, the markets would have less reason to worry about it. Thing for the u. S. To make lots of noise about sanctions, but when it comes to obvious that the big European Countries who have real economic risk, germany and italy are probably the two biggest, it is not clear whether they will go ahead with it. Reason whybe a things are a bit less turbulent this morning. I want to get back to the u. S. Here. Reactions in the Financial Market did seem relatively muted. If you look at it in terms of numbers, only down 1. 2 . The numberslook at relatively speaking, not on an absolute basis. It had notd moved more than 1 in 68 trading days. The numbers do not look very large, when they might indicate stress. We have seen bigger moves based on jobs reports. , on other types of news and this was certainly very out of the realm of what normally we have seen. Maybe it is time to get give you guys something more to focus on and talk about. I want to play for you one comment from congressman mike turner. He is with the House Armed Services committee. Antirussia,ch believes that russia is ultimately to blame for what happened with the Malaysian Airlines jet. I want to play for you what he said. Has think Vladimir Putin enjoyed the false narrative that the west has had that russia is not an aggressive state, that they could be an ally. As they turn out to look at russia differently, in terms of commercial transactions and normal political relationships, all of these things need to be impacted and certainly Vladimir Putin needs to realize that he has taken a cap step outside of the International Community. Is one persons stance. It matters how the white house responds itself. If we do see sanctions on russia and tougher pressure on russia and a destruction of the u. S. Russia relationship, how is that going to tip the global balance . Say,ntroversially i would what the u. S. Says and does about russia is not it the most important thing to russia because the trade record between the two of them is not the most important. What happens with their trade with europe and very importantly , what china is doing with them, is way more important. This is all going on toward the end of the week, were they all agreed together. Info, theto my russians have not been as keen about that as they were until a few weeks ago. At the margin, they probably change their stance. They know they need the help of all of these guys. If you look at the trade going on between russia and china and if you look at the trade with russia and europe, big sanctions from those places would be a different story. Do you get out of any russia investments at this point . Thought that if people are not out already, then you have got to be a true. In that context, i suspect the only people that are really giving it focus are the ones that might be thinking, this is just so cheap, at some point, there is going to be a shift. I have to say, that is for the brave, it seems to me. Thanks for joining us. Thanks for having me on, guys. Also thanks to mike mckee and scarlet fu for joining me. 2016g up, it is the president ial candidates laying ground work for their campaigns. One has his eyes elsewhere. That is jeb bush. Alibaba ipos may be lower. The company is seeking to avoid the facebook disaster. We are joined a few moments into the session. Israeli Prime MinisterBenjamin Netanyahu ordered the military to prepare to widen the ground operation against Palestinian Militants in the gaza strip. State secretary of Hillary Clinton was asked about the situation on charlie rose. I think that israels assessment is that with the stock isles of weapons that are now in gaza, that it would be difficult to get a reliable ceasefire. Israel immediately said yes to every ceasefire and hamas immediately said no. That is where the space is not being closed. Do you support the israelis in invading gaza . It is not an easy question. I would prefer not. Done enough to prevent an invasion . I dont know the answer to that because im not on the inside. I know there have been a lot of phone calls and a lot of outreach and working with arabs and others to try to influence hamas and try to get them to stand down. Hamas may feel ike theyre totally cornered. They have egypt on one side. Toy have israel not willing and i dont blame them at all. Hamas may feel like they have lose. G to lose did a clinton also addressed potential run with charlie rose. Here is what she said. It would be wholly personal. To have my first grandchild, which im thrilled about. I want to feel what that feels like. Im not going to skip over it. I want to really be president as i meet this new person in our family. I like my life right now. She likes her life. She said that before. They said her ahead of the pack. Jeb bush andpping Chris Christie from testing the waters. With more on all of this, i want to blink bring in our Bloomberg Politics managing editor mark halperin. What is and to get it over already . You probably will. She doesnt like the scrutiny that comes with being all the way out there right now. Piece thatill a makes me say, maybe she wont. Maybe she will look at the grandchild and say, maybe i dont need this. What is that detail make you pause . Runs and wins, the next 10 years of her life are devoted to this. It is pretty much the rest of her productive working life. Look at what it takes to run and when and how polarizing it will be to rule the country. Am nuts to sayi that. But there may be details we are discounting to quickly. Maybe. The republican hopefuls are testing the waters. New jersey governor Chris Christie heads to iowa today to test the waters there for the republicans. If you do the Balance Sheet on christie, i think there is lots out there. On the negative side, the bridge gate scandal, although it is being downplayed by his people, there is still u. S. Attorney investigation. Also on the negative side, you look at the approval rating. He is still surprisingly weak. On the plus side, there is no strong candidate out there. He is the second or first most likely political candidate. He is still a potent political force. Back to november, he was considered the republican frontrunner. What about the clintonbush rivalry . The country is looking for fundamental change and want Something Better than a clintonbush general election. He has problems with the grassroots of the party. The stories that her colleagues have about Investment Strategies that he has made. Some work he is doing on the energy sector. It is not the stuff you do if you are serious about running for president and word about scrutiny. Jeb bush plays by his own roles. He is raising private equity money to fund oil and gas companies. He is on the boards of several big corporations. That whole private equity money is what brought mitt romney down. Yes. Just like mitt romney, his attitude seems to be, i am entitled to make money in the private sector. If i run, i will do with the scrutiny. He is probably a little bit better than governor romney is in dealing with the tough questions. A little bit more comfortable talking about his personal wealth. Again, i will say, if jeb bush runs, he will have a lot of insider support. Grassroots is a problem. , a wholeess deals range of issues, he has been in the private sector a long time, he has done a lot of good work in education and has made a lot of money and deals. Of a political campaign, the clinton opposition researchers it is all about how much, the amount of money you are making. Is more like mitt romney in terms of lack of comfort talking about wealth. And lack of transparency. Thank you so much. Coming up, how the world has changed in the last one before ours. We will sit down with defense secretary chuck hagel tonight. 9 00 p. M. Eastern time. A lot of questions will be put to him by al hunt. Time for the global outlook. Alibaba may price its initial Public Offering on the percent below estimates. 20 below estimates. It may be the biggest ipo in u. S. History. This also means that the ipo may be delayed. Exactly. We are looking at a september debut date. We were initially thinking through the beginning of this week that it was going to be an august debut day. That is what my sources were telling me and what we had been hearing for weeks and weeks. Something happened that caused it to be pushed back to september. It is never good to rush a huge offering like this. We could see a 20 billion ipo. They had set the star but targets and felt comfortable to get it done. If a comfortable to make it public. What do you think happened . I think a lot of it has to do with their reliance on the sec. They have to get one final round of comments back from the sec and then respond to the terms. We were expecting that to come as late as next friday, but to put a roadshow together quickly is never a good idea. My thinking is that they were getting the sense that it was going to get pushed up against that. They will put their secondquarter earnings into the filing. The Second Quarter fiscal year for them is the first quarter. If they were looking at those thinking those were the numbers we dont want to go out with, that may have been a recent to delay. The valuation. Why hasnt been cut by about a fifth . We are looking at a 200 billion valuation. The same analysts say that in the ipo, we could see about 150 billion valuation. That is a 22 discount. The reason you do Something Like this is you have to encourage investors to buy shares of the ipo and it will not buy shares of the think they will get a lousy deal. You give them that 22 discount with the hope that they buy shares and more people who were not able to get allocations then buy the first day of trading which sets it up to the 200 billion valuation. Leslie, thank you so much. Take care. That does it for today on in the loop your co. Stay tuned. Coming up, president barack obama will be making a statement on the situation in ukraine. We will have live coverage of his remarks. In the meantime, try to have a good weekend. Market makers is coming up. It is 56 minutes passed to the hour. That means Bloomberg Television is on the markets. Im scarlet fu. We have breaking news. General electrics financial unit has announced that it will offer 125 million shares in an and 26. D between 23 ge is beginning the roadshow today. Lets get to the rest of the broad markets. 30 minutes into the start of u. S. Trading. University of Michigan Confidence coming in lower than anticipated. An unexpected drop. People were looking for the 83 levels. In terms of the effect on the markets, not much. You are seeing stocks bounce back from a steep decline yesterday. Drop p posted its biggest since april yesterday. Growing tensions in the ukraine in the middle east is keeping the cap on whatever moves we see this morning. Also wanted to point out what is going on in the treasury market because treasuries sought a bit yesterday, but there is a bit of a reversal today. 2. 46 . Year yield is that the 30year is that 3. 27 . Bond buyers have been showing little signs of optimism today. Geopolitical intentions increase. Tensions increase. Here with us now is lisa from Bloomberg News to unpack what is going on in the markets. Before we get to the high yield stuff, how come we are not seeing much of a followthrough in the safety bid, especially in treasuries . Areround the world, people looking at inflation rates, particularly in the u. S. The Federal Reserve is trying to get inflation to go to 2 . If you have treasury yields that are coming down because of a safety bid, yields are coming down approaching that 2 rate of inflation we are targeting, people are saying you need to get some kind of real rate of return. It will keep a floor potentially on treasury yields. Even though there is some sort of safety bid. Even the people are piling into assets that they think will hold the value, even if the geopolitical risk does escalate, people are saying, lets get in on these gains and sell them now. Bring in the broader picture. Where has the cash been going to . What part of the market has been the big winner . The benchmark treasuries. The 10year has done really well. Credit, 30grade consecutive weeks. It keeps going. It has been tremendous. High yield bonds. Two . 3 billion from high yield bonds over the past week. That is the biggest outflow two . 3 billion from highyield bonds over the past week. That is the biggest outflow in a long time. Janet yellen making remarks about worrisome signs in parts of the market. These are conflicting assets aspects. The fed is saying the market is getting too frothy. On the other hand, you have geopolitical risk contributing. All is not right in risk asset. For people who think there is complacency in the bond market, the events over the past couple of days show how uneasy this complacency really is. Really, underlying, all is not normal. Something could happen. People are going toward risk still on the periphery there is some fear. Fragile complacency. We will be back on the markets once again in 30 minutes. Market makers is up next. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and stephanie ruhle. Ininvolving the crisis ukraine, the Un Security Council looks for solution the day after the malaysian jetliner was shot down. A republican plan to do to turn blue cities read. Democratic lawmakers keep attacking Companies Like goober and uber and airbnb, we will stock talk to an rnc strategist. Machine. Moneymaking