Megan hughes tells us there are fewer airlines, but plenty of competition for your money. Alix steel is examining business and investment in iraq. We begin with peter cook and the latest on the rapid advance by islamic militants in iraq. President obama spoke about the situation today. He did. He spoke at the white house before he headed out to north clear and he delivered a message. Dont expect United States to arrive to your rescue in the shortterm. He will consider options for helping the government take on islamic insurgents that have put the country on the brink of civil war. Those options do not include the deployment of u. S. Combat troops and the president conditioned u. S. Action on iraqis resolving their political differences. We can do it for them. In the absence of this type of political effort, shortterm military action, including any assistance we might provide more succeed. This should be a wakeup call. Wont succeed. They have to make hard decisions and compromises. The president said that any decision could take several days. Among the options on the table, u. S. Airstrikes by aircraft or by drones. The president will face congressional criticism no matter what he decides. You have lawmakers on capitol hill from both parties calling for air strikes me to lead. Other thing the president should not consider any military action in iraq. The big memory here, the 4400 american troops who died in the iraq war. Is a concern about possible Oil Disruption . He was asked about that. He said there is no sign right now that a major disruption in supplies one goal over the course of the next few days is to talk to u. S. Partners and other producers about the possibility of making up any shortfall in supply. Clearly something on the mind of this president. The Market Reaction to what is happening as well. , thank you. K this week on Political Capital, the formal u. S. Ambassador to recentlks about the attacks in Northern Iraq and the uncertainty in the nation. As far as the threat to baghdad, even without added assistance from the u. S. Government, i think this force is going to meet pushback from the Iraqi Armed Forces because they will come up against better troops and a less friendly environment to them. I dont think baghdad is under imminent threat. It is an alarming situation. Some kind of help should be provided. Airstrikes were drone attacks would be entirely appropriate. And soon. As quickly as possible. Everyday, every hour, time is lost. Hopefully that this is an will be forthcoming. You can see the full interview with the former u. S. Ambassador to iraq on Political Capital with al hunt tonight at 9 00 p. M. Here on Bloomberg Television. As they inch closer to a civil war, what does this mean for companies that operate in iraq . Alix steel has been looking into that issue. What kind of American Companies do business in iraq . The oil companies. Look at the oil price today. Oil heading to the biggest weekly gain this year. You lose oil, that might tighten supply. 127 has oil reserves of trillion cubic feet of natural gas. Surprise that it has attracted big oil companies. They have been operating in the country since 2011. Basically self ruled. It has 45 billion barrels in the ground and is considered easier. Lace to do business they can transfer their profits. That represents 10 of Oil Production in the northern region. 17 of reserves. The bolt will be in the south of the country and there you have shell and bp. Shells ceo said that iraq contributed profitable production to the company. Not a lot has happened to the business shortterm. Its asset was proceeding as planned. No oil wes leaving the north was leaving the north. That is a different issue from what we are seeing with militants. If longerterm, there are going to be problems. Deteriorates, Foreign Oil Companies will probably leave. If security is moved from the south to the north, that might make operators in the south gilmore skittish. More the south feel skittish. What is so appealing about working in iraq . It would seem the opposite. It would. Money is being pumped into the country. Billion dollars in Foreign Direct Investment in 2011. Triple that of 2005. Why . It is one of the worlds fastest foreign growing economies. Over 30 Million People live there. The economy grew 10 in 2011 and 2012. A jumpstarted 400 billion worth of investment over the next five years. It has done its part. Foreign companies that are looking to develop Residential Real Estate can now own land. Real estate is the biggest sector. There are big needs like tech and defense to close those gaps. Basic services, infrastructure like telecom, transportation, opportunities and so many different sectors for companies. On the downside, it is still the eighth most corrupt country in the world. Obviously a long way to go. Thank you so much. Let us turn to the situation in ukraine. Agriculture companies are nearing a deal to boost exports to the european union. Allen is in washington with that story. Good afternoon. Good afternoon. We just had an opportunity to have a chance to talk to the head of usaid. About some things to talk for potential agriculture trade with ukraine. Part of my triple focus on bringing american Agriculture Companies to ukraine to understand how we can knock down some of the barriers to investment and business development. And really expand the reach of commercial agriculture in ukraine and build stronger trading ties, both east and west, for that country and its future. Things is an interesting that he is talking about. You take a look at ukraine, the worlds thirdlargest exporter of corn. It already has established ties with u. S. Companies. This is really a moment when you have world attention focused on a region that is also having corruption problems and instability. The u. S. Is willing to put more commitment into nationbuilding. More connection with those trade ties on the ground. All of this unrest we have seen is very close to the russian border. A lot of the rest of the country is fairly stable. Next week, he will be going to kiev and he will Start Building this relationship. He talked about trade with east and west, but the west as part of the west. It is in th what is the latest on the commodity situation in ukraine . Port activity in crimea has pretty much stopped because of the russian occupation. Odessa remains open. Ukraine is expecting pretty solid crop this year. The usda just had its latest estimate for ukrainian production. They did not make any changes. May actually be a decent year for ukraine agriculturally. You are seeing them come off that a bit. A little fatigue in this country foreign aid is viewed skeptically. How is the situation in ukraine different . There is a chance where you have a clear National Interest in ukrainian stability. Nothing has focused attention on this region like whats been going on in ukraine. I was in poland last week. There is a real interest in the strength of nato and the stability of this region. The u. S. Is paying more attention to this. Could mean more u. S. Agricultural investment. Talk to us about how these saidrts fit into what u is playing a role. When i traveled to ethiopia kenya, you will see these chinese construction crews building roads. What you see is a lot of attempt to build publicprivate partnerships. There is a lot of developing countries in this world and they are up for grabs as far as who they want to be friends with. The u. S. Had an interest in being friends with these countries. The model that they are trying to do to make it work. I went, always good to talk to you. Thanks. We look at how they are reading the Global Economy and how its investing the more than 25 billion it has under management. Stay with us. Welcome back. This is bottom line. Im Mark Crumpton. French economist thomas pick b says his bestselling book builds on work by scholars that came before him. Tonight on charlie rose, he says what his research does is extend Historical Data to a much larger number of countries made easier with the help of technology. These are issues people were fighting in the 19th century. You had a lot of technical innovation. Of six werethe age working in mines. People were asking questions. In the 20th century, we started asking a different set of questions. It was a different period. Societyoups in soliciting growth. It in the early 21stcentury first century, we are starting again to ask questions about the evolution very little evidence so far. His fulln see interview with charlie rose tonight at 8 00 new york time on Bloomberg Television. Or on the economy my next guest expects Economic Growth of 2. 5 in 2014. Gary black is an executive Vice President and global cochief investment officer. They have 25. 3 billion in assets under management. Welcome to bottom line. Good to see you. The Labor Department today we got wholesale price numbers. They unexpectedly fell in may. First time it has happened in three months. Why hasnt Pricing Power materialized . The economy went through a really bad time. It was the most severe recession we have had since the great depression. The fed has done everything it can possibly do to stimulate the economy. It is a not too hot, not too cold environment. Created, but no inflation. It is the severity of the recession combined with what you are seeing in washington. Not much fiscal stimulus. Democrats and republicans are trying to beat each other up. You dont see much getting done in washington. Growth is really slow. The fed would like to see inflation closer to that 2 threshold. Todays ppi numbers, do they give the fed pause on hiking Interest Rates . Im not sure. We are still thinking that you will see some point Interest Rates starting to rise. Inirman yellen came out back march and said she would support. Nterest rates rising after qe governor after governor has come out and said it may be 2016 before we see rates rise. See slow growth. 2. 53 percent. We will see another lead. You have not changed at all. You said that back in april. You see that Growth Growth is going to continue, but it will trudge along. It will be slow. It is what you are seeing in the markets. Theyre continuing to grow higher. Any news they dont like, its a good scenario where you get gdp inflation. No it gives the fed a lot of room if they want to push up the Interest Rate increases. Evaluations are extremely compelling. Among the cheapest they have been in 60 years. Are you concerned that the u. S. Could dip back into recession in the next 12 months . We dont see it. We look at the key sectors, housing, it took a pause because of the bad weather we had in the winter. That is Janet Yellens major concern. Housing is still not back where it should be. That is starting to move up again. We think now that the weather is back to normal and you see Interest Rates fall this year, we think youll start seeing housing pick up. You look at autos, they continue to move up. Getting 17 million a year. Consumer confidence remains pretty good. We had a week number today. Retail sales was weaker than what we thought we would say. ,ll in all, you put it together things still look pretty good. We are seeing consistent job growth, but not in the higher wage and income positions. Can that real Income Growth remain flat . Ofk about the implications that for Economic Activity and for an increase in good paying jobs. You are seeing a lot of not at the its lower income level. Would you really want to watch his Capital Spending. Capital spending has been lagging. We have not seen the boom. Normally five years and way recovery, you start saying Capital Spending regaining is mrs. All the severe recession businesses solve the severe recession. Is this economy going to take off . To get to that 300,000 a month, you need to see the fed start trying to ramp up Interest Rates. You have to see Capital Spending growth. Have not seen it. The level of Interest Rates are so low today that you have corporations earning zero net cash and you could borrow money at 14 . We have seen 1 trillion and deals this year. In thea deal last night internet space. A high multiple stock. Youll continue to see a lot corporate treasurer is saying, rather than zero on cash i would rather be buying the building. I have less than a minute. World bank lowered the Global Economic outlook. Cited rebalancing in china. What does that mean about the soft landings that you were predicting for china . We still see that. Bc china growth in the seven range. The small and medium businesses continue to expand. There is little inflation. China seems to be doing all the right things in terms of structural reform. We see 7 growth in china. We dont view that as a problem going forward. A much longer conversation. Hope we can have you back soon. Gary black, good to see you again. Thank you very much. Still ahead, the scoop on doing good and turning it profit. I will speak with the ben jerrys cofounder. Bottom line continues in just a minute. We wanted you to know that bloomberg is the only Business News service being offered on amazon fire tv. If you missed any of our interviews, you can now watch them on bloomberg on apple tv. It features Live Streaming and ondemand videos. We are coming up on 26 past the hour. That means Bloomberg Television is on the markets. No hyman, the 13th. Friday it looks like we are seeing a bit of game today. Even though there is still the situation in new york that has been pulling pushing oil Prices Higher. We did have intel coming out with a more positive forecast a ondemand for business pcs. That seems to be giving a sentiment list to some sectors. Sentiment left to some sectors. According to fine a person familiar with the talk. Prosecutors actually broke off of the bank earlier this week after city offered less than 4 billion. The Justice Department may file a suit as early as next week. Banks thene of eight Justice Department is investigating for allegedly misleading investors over the quality of bonds backed by mortgages. We have seen this tactic in these other cases where banks have offered lower sums to settle with the government. The government has held out for these higher sums. We will have more on the markets in 30 minutes. More bottom line is next. Welcome back to the second halfhour of bottom line. Im Mark Crumpton. President obama unveiled details of a minimum wage raise for those working under federal contracts. Congress is moving slowly on the administrations request to mandate a new level of 10, . 10 10 an hour across the country. The potential beneficiaries if the hourly wage does rise. Wage . Earns the minimum president obama recently suggested raising the federal and mum wage from seven dollars 25 cents to 10. 10. The Congressional Budget Office estimates that this would raise 900,000 people above the federal poverty threshold. Increase earnings for low rage lowwage workers. Less than 1 5 of that money will go to families living below the poverty racial. Most of the one. 6 million americans dont actually belong to what the Census Bureau defines as low income families. Benefitshose who made dont fit lowwage stereotypes at all. Only one in 10 of those workers teenagers. Fected are more than one third of them are 40 or older. More than one quarter have kids. The earn half the familys income and one in 10 have read when college. This proposed raise could mean from subtract the income the increased earnings per lowwage workers and the net boost to gdp wouldve barely top 2 billion. The net affect on the federal budget deficit would probably be small. At least, in the short term. Joining me now. That is a lot of math. The other about surprising aspects of this minimumwage demographic. Can we even call it that . I think so. Of the minimumwage earners are teenagers. 27 . Number was today, 55 of those are women. One of the surprising things for me was that, of the people, one in eight live in a household where the household themselves collectively take on more than 100,000 a year. One in five kids in america would see a parent benefiting from this increase. There is a huge number of people involved in this. Thank you so much. Up next, making sure the road to rio is safe to attend. We ride shotgun with brazils army to see what the country is doing to key players and fans safe. It is the company known for its cherry garcia and pecan ice cream flavors. Ben jerrys is also known for its commitment to doing good. One of the cofounders, jerry greenfield, joins me now from burlington, vermont. Thank you so much for your time today. It is great to be here. Your company has won several awards for undertaking socially responsible initiatives. How can a company be socially responsible and also turn a profit . It turns out that being a caring, giving company is also good for the financial bottom line. How good . Well, the company is doing great. One of the interesting things that ben and i have learned over the years is that, the more generous and more giving the company is, the more financially successful it has become. It is counterintuitive, but that is the way it has turned out. How were you ab