Headlines today. Michael mckee examines how hurtas import ban could its consumers. Olivia sterns looks at option plans for sothebys. Lets begin with Phil Mattingly at the white house with the latest on those airstrikes in iraq. Good afternoon. Good afternoon. Wasted littletion time making good on president to get rid ofed artillery pieces and iraq. Fighter jets dropped 500 pound bombs targeting a single or tillery peace. The reason why . A president related out last night. Take a listen. In recent days the terrorist s have continued to move across iraq and have neared a city where american diplomats and civilians serve at our consulates. , i havethe advance directed our military to take targeted strikes against isil convoys, should they move toward the city. We intend to stay vigilant and take action if these terrorist versus threaten our personnel or facilities anywhere in iraq. Officials say that didnt fact happen. Artillery was targeting kurdish Ground Forces in an area where u. S. Personnel were. That cause the u. S. To launch these strikes. This is the second heart of a multipronged push, the second part being humanitarian aid. Population pushed into the mountains last night. We expect more humanitarian airdrops in the days to come. How are u. S. Officials the militaryting capabilities right now . One of the most interesting u. S. S i have heard is officials are stunned by both the sophistication and the are bringingsil with their recent attacks. They have heavy weaponry, most of it captured from iraqi forces wellhey are operating very together according to u. S. Officials. This has caused major problems and it is a primary reason why you have seen the president authorized the strikes. His forces are moving quickly and putting u. S. Risen now in danger. Phil, do we have any sense of the scope or links of action by u. S. Forces . We know the scope. Within a rat only i believe there has been some push by the public and lawmakers to increase the push. Absolutely not going to happen. However, this is an openended commitment. If there are further threats to u. S. Personnel in baghdad, potential threats in mosul, the ability to strike there. This will be reevaluated regularly, but this is not ending anytime soon, mark. Mattingly joining us from the white house. Thank you. My colleague su keenan is standing by. Analysts are scrambling to update forecast right now. That is really the story here, particularly in terms of the bullish outlook for gold, mark. The interesting story in gold is the longerterm outlook is ually perish, this bearish, this on the view that the airstrikes will stabilize iraq. Longer term this may actually be good for supply. The ability to move around has given the militants has been the militants raid a strength and u. S. Air power can take that away. They have spared the production in iraq south, which is the home base of three quarters of its output. That is compared with about 10 million a day from saudi arabia, the largest producer. In early rally faded. We are eking out a small gain for oil, gas and heating oil closing the day lower. The Bigger Picture the combination of geopolitical events in the mideast is causing some analysts to raise longerterm price protections. Barclays is one. They say that the risk is to the upside for oil. Unreliable libyan libyan supplies could boost prices, despite the weaker demand. What about gold . What are we seeing . Safe haven benefits from lots of what is going on. Gold traders are the most bullish they have been since the start of the year on gold. That is due to a combination of world events. Gold is a greater demand as a safe haven and should remain well supported with all of these risks from the standoff between russia and the u. S. To the latest with iraq. It was higher earlier in the day before those gains faded. We are seeing a lot of gold bulls reenter and by, or given what is going on. Su keenan, thank you. Lets turn to russia and the fallout from the crisis in ukraine. It isit is retaliating against u. S. And european sanctions. What is surprising is the targets it has chosen. Bloomberg economics editor Michael Mckee joins me in studio. This is the story that will not go away. It is odd given everything happening in the middle east is stocks are up, bond yields higher. Comments byt after Vladimir Putin that he is willing to mediate and back off in ukraine. That may be because the sanctions are starting to reverberate. Matter of time before russia retaliated. But the targets are surprising. Sanctions include things like beef, poultry, vegetables, milk, fruit. What has analysts scratching their heads the sanctions will have more of an impact on russia than here. Russia imports 25 of its food. About 30 billion worth comes from be sanctioned country. When we talk about the countries were talking about, it is not much to each one. Just over one billion comes from the u. S. , that is 10 of overall exports to russia. The biggest . Chicken parts. Wings and legs. Total u. S. of production. There is also this. The rising beef and pork prices has pushed up chicken prices, to you well. If we are exporting less and there is more supply here, that should ease prices somewhat. And we are selling almost no cattle to russia. So who does get hurt . You do not want to be in slovenia in this situation. The sanctions are 2. 5 of that countrys gdp. It is not a big deal for the eu. Who might really get hurt though is the russian people. Russian consumers, many of the products they take up will be in short supply. That will raise the price, raise the inflation rate. Analysts say it could add 1 to 2 to their inflation rate. Bloomberg economic editor Michael Mckee. Coming up, elon musks spacex commits to building a space launch facility in a town that borders mexico. I will talk to brownsvilles mayor in just a few moments. Brownsville texas is basking in a futuristic low. Last month spacex, the commercial Space Transport firm headed by elon musk, and announced plans to build a launchpad just east of the city. What are the economic benefits and what will be city mean for americas Space Exploration goals . The mayor Tony Martinez joins me. Mayor, thank you for your time today. Thank you for having us, mark. Mr. Mayor, the decision to brownsville is being told strategic. Why your city . Geographically, we are positioned perfectly to begin with. We have also worked really diligently over the last three years to hopefully begin what i would call the origins of a space hub in texas and in brownsville. Mayor, this project, it has been three years in the making. Tell us what it is going to mean in terms of jobs in brownsville and Economic Growth . Youll have Capital Improvement close to 85 million to begin with. You are going to have construction jobs. Then youll probably have an annual payroll of about 50 million that will be generated once the construction is completed, which we hope will be between 18 and 24 months. So, you are going to impact the influx of capital and moneys in the city, and that will impact the taxes, whether they be sales taxes or property taxes. So, besides the energy it will create and the enthusiasm, i think it has a lot of great economic benefits. We are looking forward to it. Sir, tell talk to me about the supply change supply Chain Logistics you and the Development Council will have to work out. We have what i call the Network Cluster of supporting cast. Different types of industries, manufacturing, etc. We have not really defined all of that in its totality, but we do know it comes with a cluster of other types of manufacturing that are required, and not to mention, the transportation of a lot of different arts from all over the world to get this project underway. I am speaking with Tony Martinez. He is the mayor of brownsville, texas. X launch facility is slated to be constructed in his city. What incentives did brownsville in the state of texas offered to , andthe deal with spacex did you face resistance because of the Environmental Impact, part two dealer early on the adjacent state park that is part of the Rio Grande National wildlife refuge . Privilege to go watch a couple launches in florida, and quite frankly be impact is negligible. That is probably hard to imagine, but it is the truth. Andad the faa come through we had over 500 people attend those meetings, and quite frankly out of all that, we had one or two naysayers. For the most part, even our director of the zoo in brownsville was in favor of this particular project. Has been a it thorough job done by the environmental people, and they find any impact that will be affecting that area. So, i think we have done a great job, and i think you will see the environment will not be affected. Sir, you use the word negligible. As you know, the word negligible does not mean 100 without risk. Are you comfortable the Environmental Impact will not effect onetrimental your town . I am certain of it. I really am. I do not want to be overconfident. But i think the amount of Due Diligence and all of the investigation that we did i happen to be a trial lawyer and have done a lot of environmental litigation. I am satisfied. And i think everybody else, all the organizations, all of the agencies were likewise satisfied that when you say negligible, yes, it can mean a whole lot of things, but it is not enough to have any risk involved with it. Spacex ceo elon musk says not only will be rounds will facility create jobs, but it will inspire students. You have called the facility a barrier breaker. What are the educational benefits and which barriers were you referring to . The would like to convey message across to investors or Business People or whatever we have a lot of great talent in our university there, at the university of texas. And a lot of the folks, once they get out of their formal education they probably have to go somewhere else to look for jobs and make a living and i think this will provided you to full time, a beautiful time, not only for when they are in school, perhaps to do work with spacex, but also their after thereafter. It asof them referred to the brain drain. We will not have that. And with that we will have other people coming in. We will be breaking barriers in a sense we will be affording Educational Opportunities to other people. Mr. Mayor, the facility will be located near the mexican border. Concerned about Migrant Workers seeking construction jobs to the detriment of local citizens who need work . The thing about it, the Border Security as we know it, those of us living in the area, it is actually quite good. This influx of children from Central America or the different adults that are coming through, they dont try to cross and turned themselves in. The worker situation, i think, is also a great opportunity for us to address them up the Immigration Reform that is perhaps up there in washington. And noee no problem effort that has to be highlighted with regards to Illegal Immigrants coming across for that purpose. Mayor martinez, we have a little less than one minute left. The Johnson Space center in houston was born from the idea of conquering what president kennedy called the new frontier of science and space. Do you consider the spacex facility a new chapter in that frontier . Without a doubt. I quoted president kennedys moon speech that he gave here in houston in 1962. I think we are exactly there. This is a great opportunity for brownsville and the state of texas. I welcome all of the opportunities that will come my way. Mr. Mayor, when do you expect the first launches . Construction is supposed to be 18 to 24 months. I suspect the way this organization will works, probably 18, 19 months from now. All right, Tony Martinez, joining us from our bureau in houston. Your honor, it has been a pleasure. Appreciate it. Thank you. Coming up, sothebys opens its doors to the masses. We have details on why it is listing its collectibles on ebay. Bottom line continues in just a moment. Southerly stock is falling on news that its battle with billion air so the bees stock is falling on news that its battle with billionaire dan loeb is costing it millions. Olivia sterns has been digging into these numbers and she joins me in studio. B is getting what he wants, but it comes at a cost, doesnt it . It looks like it will cost more than sothebys initially estimated. Of download has gotten some what he wanted. He is on the board now. Is overall critique, that still does hold and that critique is is of these is sothebys not a costeffective business. You saw that today. Numbers were out today. Legit compare this to a a majority of companies, sothebys has seen plenty of sales. Both sothebys and christies had record auctions. The revenue is strong, the art market is buoyant, but the margins are shrinking faster than sales are. Why . That is interesting. There are only 300 people in the world, max, in the market for the use of are 20 million and up. So theaid the bees bees compete fiercely. Ys and christies compete fiercely. They will probably wipe out the commission. That is probably why their margins get so small. And they are desperately looking for new customers. They are both pouring over the asia market. Talk about the new online strategy. Teaming upebys is with ebay. It is interesting to hear both of them in the same sentence. Isnt it . You think of sothebys as an elite institution. Collar. Bay is blue well, lets call it mass. What they want to get into the mass market, which christies is already done. Christies is there archrival. Their archrival. They sell 15,000 watches. They are in the lower end of the market. All right, olivia sterns. Thanks so much. 26 past. Bloomberg is on the markets. Julie hyman at the details. Hi, julie. Happy friday. We do have a bit of a rally here. Ctually extending up 9 10 of a percent for the s p thethe dow, up. 7 for nasdaq. We are seeing a bounce back. Also reassurance on the geopolitical front, perhaps helping matters. Lets look at mcdonalds, too. The largest restaurant chain dropped in july. The Third Straight month of decline. Domestically, mcdonalds has been struggling to attract americans to us locations with increased competition. Welcome back to the second halfhour of bottom line on Bloomberg Television. I am mark crumpton. Thanks for staying with us. The World Help Organization has the clear the Ebola Outbreak in west africa and International Public health emergency. It is the largest and longest outbreak of the disease every ever recorded. More than 960 people at been killed by ebola. U. S. Jets are dropping bombs on islamic militants in iraq, carrying out president obamas promise to protect american civilians still stationed there. It is not clear how many militants might have been killed in that strike. Gazatinian militants in refused to extend a threeday truce after negotiations in cairo hit a deadlock. Israel was funded with a series of airstrikes in gaza. Now to look at the top stories in the news this hour. 50 of all cars sold by iconic uvss car maker porsche rs r suvs. Porsches not alone is not alone. We look at the everexpanding luxury suv market. We can finally say it the suv takeover of luxury cars is complete. It is not good enough to have one suv in your lineup. Oh, no. You must have a wardrobe. This is the little brother to firstyenne, porsches suv. It cost conniptions among purists, but then went on to be the best selling suv of all time. Do thise, carmakers can nowadays because it is easier than ever to spin off different models from a common set of parts and measurements. Mercedess new suv is related to its sedan. Acan is related to its corporate cousin, the audi q5. It makes sense. The company was leaving money on the table. Customers who loved these sports cars were going off and buying bmws and range rovers. They would buy a porsche suv, if only porsche made one. Volkswagen was also interested developing a full side fullsize suv. Bw and worst developed a partnership. After dipping their collective toe in the water about a decade ago, Luxury Car Companies are going all in for suvs, and for good reason. Their customers really like them. The ability to carry a lot of stuff, the reassurance of all wheel drive, and higher seating has become a musthave combination. As i speak Companies Like bentley, rollsroyce, and lamborghini are engineering big, tall suvs of their own. Forget about lowslung sports cars and sleek limousines. In the luxury market, the only way to go is up. Up next, we tell you about a dramatic change for the ncaa that might let College Athletes share a piece of the billion dollar industry. Bottom line on Bloomberg Television continues in just a moment. It is time for todays latin america report. Relief may be coming for argentina. Busy rallying investors. Citigroup, j. P. Morgan, it hsbc, and Deutsche Bank have all been involved in discussions with investors. That is according to a person familiar with the meetings. Dropped 1 ,razil the most among equity benchmarks in thericas americas, as a poll showed resident doma recep winning in a runoff. President Dilma Rousseff winning in a runoff. That is your latin america report for this friday. Big changes for the ncaa. The Biggest College athletic programs are being granted hershel autonomy. Lee idol is a professor of sports management. Welcome back to bottom line. Good to see you. Good to see you. Anything i say and that intro that was wrong . No, everything is right. What about partial autonomy and athletes getting a piece of the pie . We are marking a different time for the ncaa and student at