Stories making headlines today. Peter cook looks at Congress Vote on president obama plan to militants. Ic state the scotland referendum on the biggest industries. The latest on the gm compensation claims. We begin with the compensation representative kenneth feinberg. It shows the total number of People Killed by the ignition switch is maybe higher than initial estimates. So far 19 death claims have been claimed eligible for compensation while gm had counted 13. We spoke with him earlier today and began with its gm got it wrong. No, gm applied a different and are. Gm was looking at engineers and asking engineers, can you definitively say it ignition switch defect caused the accident . Our standard is much more liberal, much easier to apply, a legal standard. Was the defective ignition cause, ae proximate substantial likelihood as the cause of the accident. That is one reason there is a discrepancy and also remember under the program i am administering, passengers are eligible, passengers of other vehicles. Some estimates suggest they need as much as 1. 5 billion. Where do you see the numbers falling . We will see. We are just now beginning to make the dollar house galatians. Once we make the dollar calculations, we have to then see whether the claimant, the victim or his or her family will accept a money so it is a little to be putting dollar signs next to eligible claimants. We will know more about that in the next four to six weeks. This fund is limited to the original february recall of two point 6 million vehicles. As people have been writing in, and to you get a sense they may need to extend and broaden the criteria, the eligible vehicles and will they need to hire you back again . That is up to gm. We have seen the number of inquiries. Esther fienberg, i lost my daughter live in an Automobile Accident in the gm car, and ignition switch. If it is not an eligible vehicle listed on the gm protocol, no point applying. There are criteria and only those criteria at the current time determine my jurisdiction to award ahlers in damages. Do you suspect the number is substantial enough that you may need to suggest to give it a second look . I would never system i to gm. Ever suggest that my jurisdiction to compensate is determined by others. I can only do when i am asked to do. Gm will ultimately have to decide Going Forward whether it is comfortable with the protocol, whether it should be expanded to other vehicles. That is completely gm call. My colleague joins me now from washington with more. We did not give specific thick dumb payout information but did he hint of what may be to come . We did hear from him about specific payout information in four to six weeks. A andd between track track the payout information,rack a being clearcut something that determines the age, earnings potential and then specific economic considerations, fienberg sees the split us 40 track a, 60 track be. They want the claims and tie out considered on a casebycase basis. He credited that to the lawyers now involved. Turning now to europe as the people of scotland prepare to vote on independence this week, many questions about what the vote could mean for the industries. It scottish residents vote to leave the United Kingdom later this week and economy will fear barely be crucial for success. The Energy Industry will be one powerful element. The north sea would be split up with 96 of the oil output and 47 of the gas going to scotland. With Oil Production down, future revenues may struggle to cover promised social spending. Oil giants have publicly stated they prefer the United Kingdom to stay united. Scotland Financial Sector or is also significant. 100,000 people managing more than 1 trillion and funds and generated more than 10 billion every year for the scottish economy. Some of the oldest finance firms including rbs founded in 1727 and Standard Life started in 1825 have said they will move business south of the border if separatism becomes a certainty. Industry was built around the countrys imports and exports. You have most famous is whiskey. Centuriesold distillery can hardly pick up and head south. They worry the uncertainty surrounding an independent currency could impact competitiveness and supply chain. 109 distilleries sold 7 billion of whiskeys whiskey overseas. That makes it the second largest scottish exports after oil. Joins me withx more. Could be a lot of whiskey drinking depending on which way the vote goes. Approaches, what are they saying about the future of industry in scotland . The Prime Minister is talking about the risk free separations being a dream. Not much should of a trial a painful divorce. They been harping on the deep the idea that it will be harmful for many businesses. They have been looking at evidence of the potential disaster. What do you cave Business Leaders say about this . They say they have heavy amounts of investments in scotland and will be difficult for them. People and tell tucker what will happen to specifically because they have not been sing because of tax incentives. Of daysve a couple until the vote. What are the polls saying . Been very difficult. Not a great deal of pulling experience in the u. K. We will continue to follow the story. More coverage as a vote approach is on the 18th of this week. Thank you. Coming up, leveraging junk bonds. Whether it is approved and option for investors looking for higher yields. Stay with us. We will continue in just a moment. Stocks are mixed today following the first weekly loss for the dow and s p in five weeks. Bond yields near the highest in two months. It is all about the Federal Reserve this week. Michael mckee says that make it worse for investors. What goes up must come down they say. Looks like we are about to prove it. Take a look at what has happened to volatility. Is back and play. They will not raise rates wins civicnd will not be the about a timetable but they have to give us new Economic Forecast and have to give us the new rate map. When do they think rates should rise and by how much . The new forecast suggest some time in july. Bottom line, they will have to be more hawkish than that. Of ratel start running room and that and already have. When you say hawkish, what do you mean . They are going to move those thoughts. Some members talking about an earlier move. The real question is whether the longterm docs come down . Do they find the new neutral idea that the economy cannot grow all that fast . What do they say about it will likely be important to maintain the current target rate for a considerable time after the Asset Purchase Program and its becausease program and it ends next month. Were also supposed to learn more about how they will raise rates when they do. We dont know for sure but that is the expectation. It would not be as our gift moving. They will get interest on excess reserves as the rate. Fixed rate will be the bottom. This is a big deal but not as big for volatility. Michael mckee, thank you. Junk Bond Investors looking for higher yields they want to try leveraging the bonds, at least that is the advice from analyst at citigroup. Joining me is lisa abramowicz. Thank you for coming on. Why are debt investors using more leverage right now . Look around. One reason they are considering guidance is they are concerned about how long the low rate environment has persisted and the complacency resulting from such a long amount of time. When you get the low rates people say we will not lower the target yield, we will just find new ways to get there. One of the ways is leverage. Havent they learned anything from 2008 . Outsecretary even pointed in a recent statement, this is the month anniversary of lehman. Had they not learned anything . I do not know who is the day they here. I think that is the question. Pension tensions funds and retirees and a lot of people looking for a significant real rate of return that is difficult to get given the current environment. Looking forward, if growth is not going to accelerate that much, and there are some people out there that have borrowed from the future to pay for today by getting so indebted that if that means growth will be slower, been the only way to get returns or not the only way but one of the ways is to engage in riskier practices such as incurring more leverage. What type of assets are they leveraging up into is doing this . Citigroup analysts were talking about which assets are the best to leverage to get 10 return, given how much leverage you would have to use and how much you would have to borrow in the short term to invest in longerterm assets . They found given the rate turn and risk on the model back in 2011 that highyield bonds tend to give more reward for the risk. There are a lot of people who would disagree with that. A lot of people say it inherently they may be more risky because they have been among the biggest beneficiaries of the fed stimulus. How does leverage amplify returns and on the flipside, potentially losses as well. Basically what you are doing is capturing the difference between longterm rates and shortterm rates. Investing longerterm was shortterm borrowing. Here are the problems. Potentially if you have to pay assets, yourtterm may have to liquidate the longerterm assets if you are unable to do so or able to do that at a huge asset. Ok is the fed the potential roentgenology this . Maybe in the short term. Here is a theory, in the longerterm, regardless of what the fed can do with the fed removing the stimulus, it will reveal the underlying economy and just how strong it is. How long it can keep going and accelerating. The question is, if it cant, then we will be in the slow growth environment for a while. If it does accelerate, which is not the base case scenario, then wherean pose a problem you start getting the shorterterm rates that are rising. What does that mean for investor appetite for leverage . You would have a lot of volatility and bond values and a lot of losses potentially. Says they gross believe in the new neutral. They do not think growth will accelerate and think it is prudent to use leverage. They are focusing more on higherrated instruments than junk bonds it seems. It seems like some of the biggest investors are saying we do not see a scenario in which road will accelerate that much. Potentially that makes the system more fragile because you have more leverage and inherently risky bets hanging out there. Are we at the end of the credit cycle . It is hard to say. It can persist for longer amounts of time. Has created a Financial Stability group to examine where the potential bubbles are. They are clearly concerned about this and the vulnerabilities of merging the markets that results from so many years of low volatility and low Interest Rates that do encourage them to the spur riskier investments and investing practices. What about the time of low volatility . Is the public just saying the economic signals seem to be Going Forward, we seem to be getting all of this stuff behind us but is there still condition is . Certainly. There is a question whether the low volatility and numbers lie the implied volatility . Are is a question of whether it is real or whether there is a trickle that could end volatility. Banksk there was the would be happier and they would be earning a lot more and so with the hedge funds. The question is how long it can go onand how long it can without volatility frankly. Lets we will see you wednesday on the days. Thank you so much. Coming up, Congress Gets ready to vote on president obamas plan to back Islamic State militants. That story when we continue in just a moment. President obamas plan to take on the Islamic State militants will take on it first passed in congress this week. Peter cook to insmed me with more. Is the president going to get the support he is looking for . Right now looks like the president is likely going to get a vote this week on his plan to arm and train. Of looks pretty clear based on the resolution of the house is planning to vote winner this week. It will come with strings attached. Not the kind of strings that would make them oppose what the house is going to propose. Specifically were told the plan will require the department of defense to submit to congress 15 days before the Syrian Rebels lawmakers the plan to so they can review it. There will be a Progress Report every 90 days. The resolution will spell out no combat forces can be used on the to help in the effort with. Rebels and other conditions tied to the funding that impose stricter oversight on the part of congress over the proposal. At the end of the day looks pretty clear the president will get what he wants in terms of limited training and equipping rebels. There is a larger question whether they need to vote on broader authorization over the entire effort to take on the Islamic State. That will likely get put in the lameduck session of congress. Youre hearing them say they do expect to cast that type of boat. , what about his efforts to build an International Coalition to take on eifisil . The white house says it is coming along nicely in their words. 40 countries are pledging some sort of support to the effort. He said over the weekend there would be arab states that would engage in airstrikes. There are other contributions for countries will make. The white house being very clear that they want to hear that from the countries and not announce it forward. Peter cook, thank you. 26 minute past the hour. By. Ia sterns standing the next day on wall street. It is a mixed day. The dow is in the green. The s p in the red ever so slightly trading below 2000. That comethlook at down by more than one percent being dragged lower by some big names including tesla who shares are off by 9. 5 and also facebook and activision. A couple of individual stocks were watching. The first is at t. News that American Mobile has reached out as a potential suitor according to people with knowledge of the matter. Hoping to appease regulators over antitrust concerns. This could fetch as much as 17 billion. American mobile is carlos slim mexican conglomerate. We will be on the markets again and 30. Welcome back to the second halfhour of bottom line. I am mark crumpton. Thank you for staying with us. Su keenan has details. Good afternoon. The Energy Rebound one of the big stories. West texas rebounding back on the weaker dollar. Oil futures rising as much as just over half a percent on the lack of any bullish news. Oil will continue to trade sideways. Energy prices rose earlier on China Economic crisis. Aaa reports gas prices. Hurricane odiel the strongest to hit Baja California and decades. A battle the mexican peninsula with high winds and rains. Abos san lucasst some resort area. It is forecast to continue to weaken. Change in direction for coffee and gold. Coffee the winningest commodities so far. Down this day. Forecast for rain in brazil has coffee prices falling more than a percent. Changed. , gold little rebounding from an eightmonth low. A physical demand. The china shipments more than double. Up to 39 million a year earlier. Prices have been falling for the past five weeks. This is concern to raising Interest Rates. That is the big question of the week. Su keenan with the commodities report. Preorders for the iphone 6 and iphone 6 plus topped 4 million and preorders in the first 24 hours. Deliveries will not start until the end of the week until the phone officially goes on sale. Demand is already outpacing supply. These are the latest and best iphones we have ever done. I think you will agree. This is my iphone. This is the iphone 6. This is the best phone we have ever done, the thinnest. This green screen is to die for. T is super fast lightning fast. Whole new range of wireless technology. Screaming fast on the wireless networks. Really unbelievable and feels unbelievable in your hand. Hold it. It is really unbelievable. Teamesign, johnny and his did an incredible job. It is really seamless in the glass like a singular form. Back to what is next. This represents a continuation of the iphone. Leap frog i would say. It is not the first iphone. It is the biggest advancement ever and iphone history. So we think the upgrade cycle here in the number of people that will switch from other smart phones, it will be in normas. Were you challenged by what samsung does and has in the development of this size personal smartphone . Know, we could have done a larger iphone it has never been just about making a larger phone but making of that are found in every single way. So we shipped things when they are ready. The display technology here, the Battery TechnologyEverything Else and the software, you can still use it onehanded because you can tap it twice and the screen will come down. So the ingenuity here and the fact that we have integrated hardware services, which i think only apple can do, it now is the time for it. Like mr. Cook also address security concerns over apple pay, the new feature that uses sensors to let people pay for goods and services by swiping the smartphone. Our system is much more secure than the traditional Credit System is. They do love their card. We are not doing what other companies are doing. You aret know where buying it. We do not want to collect the stuff on charlie. I do not want to know where youre spending your nights. So we firewall all of it but we do not keep it. It is on our servers. Great and what is fixed what was not. You can watch the full interview with apple ceo, tim cook, on charlie rose tonight at 8 00 and 10 00 new york time. Staying on cyber security, lokket lokken elliott talks about the rise in Cyber Attacks on the best way to deal with them. Tothe best idea is immediately report it. And to ask security engineers. The revenues are about 60 million. Is there in a noticeable impact it is you expect . About five percent yearoveryear. This is getti