Headlines today. Michael mckee examines job creation versus falling wages. Peter cook monitors developments come and hang greenbergs lawsuit against the u. S. Government. We begin with willem marx, and the victory in the first round of result elections. You how are you . Talk to us about what happened in the first round yesterday. What we saw was the president coming in first. But the candidate who came in second, that was a surprise to most political observers. The polls that suggested that he would not be the candidate. Was nevest who took the second spot. Trailed. Ined there will be a runoff with those two candidates looking for majority. What happened to her campaign . All the polls leading up to that vote put her firmly in second place . As the president s campaign saw that she was beginning to threaten her lead, they started to attack her. They had a huge amount of Television Time almost five times as much. They use that to good effect. They put out commercials talking to giver, her desire the central bank autonomy. They said she was in collusion with bankers. It of things that maybe werent as bad, but did damage to her standing in the polls. We saw her coming in with 21 . Talk to us about the economic realities and challenges facing the winner of the president ial election next month. Over the last four years, weve seen the stock market and currency sliding pretty dramatically. 33 and 22 respectfully. On top of that, you have inflation out of control. That is reallyng affecting businesses here, as well as ordinary consumers. Of course, both candidates saying they are going to try to get inflation under control. Rousseff had four years, she hasnt managed it. Those the kinds of things that people are worried about. Willem marx joining us from sao paulo, brazil. Thanks. We will be back later with julia for a roundtable discussion on the brazilian election. That is in todays latin america report, coming up in about 40 minutes, right here on bottom line. In other news, it is the first monday in october. That means the start of another session for the u. S. Supreme court. The justices cleared the way for an immediate expansion of samesex marriage, by unexpectedly and tersely turning away appeals from five states who were seeking to prohibit gay and lesbians unions. The courts order effectively makes gay marriage legal in 30 states. Without comment, the justices brought to an end to delays in same secondary is samesex marriages in five states. Tonight, the debut of Bloomberg Politics broadcast with all the respect, will launch at 5 00 new york time. Their first guest is mitt romney. Mark and john will join me at the bottom of the hour to preview with all due respect, right here on bottom line. That means that taking stock, moves to 5 30 new york time. That starts tonight, only on bloomberg. In other news, the dark days of the financial crisis came back to light today in a federal courtroom in washington. Hank paulson took the stand to defend the aig bailout. He is the first of three star witnesses to testify and hang greenbergs shareholder lawsuit against the federal government. Peter cook has more on this case. How did mr. Paulson do on the stand today . It was clear from watching him that there are few things that hank paulson wants to do less than talk about the financial crisis, after everything he went through. Today,on the stand talking about some of those painful, difficult decisions he made us treasury secretary. You can see the anguish in his face as he was talking about some of those decisions. By and large, we heard the same story from hank paulson on the stage that we heard from the start of the financial crisis. The decision to bailout aig was necessary. Distasteful, he didnt want to have to make it, but it was the necessary decision to save the u. S. Economy. He stuck to that message throughout the course of his testimony. He didnt get off message. One thing we heard, the notion that perhaps the chinese had offered to throw a financial lifeline. Maybe they could have stepped in. There were other options on the table. Hank paulson put that to rest. Nervous aboutre their Current Investments in the United States at that time. He did not think there was a legitimate offer on the table from the chinese to come in and save aig. That was perhaps the one new wrinkle we heard. Just about two hours in the stand. What is the crux of Hank Greenbergs case . Hes the biggest air holder shareholder of aig at the time of the bailout. He says the terms of the bailout were so onerous and painful to shareholders that they were effectively harmed by the federal government. But this was a taking of their property. The terms not fair, other banks that received assistance from the federal government had much more generous terms. That in and of itself constitutes a violation by the federal government of their constitutional right to property. They are making that argument that the federal government didnt have the legal right to set it up the way they did, taking an 80 equity stake in the company. Who is up next . We have also witnesses. Trying to see a tim geithner might be able to make it from new york to washington this afternoon to begin his testimony. The former new york fed president , and treasury secretary is now likely to testify first thing tomorrow morning. Peter cook, joining us. Thank you. Coming up, u. S. Businesses access to greater china. He will talk to the undersecretary of commerce for International Trade about what the u. S. Commerce department is doing to help American Companies gain access to china. Stay with us. Bottom line, on Bloomberg Television continues in just a moment. Lets check top stories. Hilton is selling the waldorfastoria hotel. The buyer chinese insurance company. The price, almost 2 billion. Hilton says it will use the money to buy other u. S. Assets. Hilton bought the waldorf 42 years ago, and will continue to manage it. That would will undergo a major renovation. Ahead of a white house meeting on the able outbreak, federal Health Officials say the u. S. Is weighing whether to institute extra screening at american airports. An american journalist who contracted ebola while working in nigeria arrived at a nebraska hospital where he will be treated. He will be kept in a specialized biocontainment unit, not specifically to handle this type of illness. Things are getting back to normal in hong kong, as prodemocracy protests dwindle. Student leaders and government officials held their first direct talks last night. Protesters warned they would wrap up demonstrations if concessions were not made on their demands for free elections. That is a look at the top stories in the news at this hour. The u. S. Commerce department will kick off a twoday Business Forum tomorrow here in new york, entitled discovered mobile markets, greater china. The goal is to help u. S. Companies gain access to export opportunities in greater china. Stephan seelig serves as undersecretary of commerce for International Trade at the u. S. Department of commerce. He joins me in studio. As your secretary, welcome to bottom line. Gain groundompanies in china when imports rise faster than a sports . China is the Third Largest export market already, behind mexico and canada. Over 122we exported billion of goods to china, which was an alltime record. It has grown every year for the past 20. Clearly, there is room to grow. We have made a lot of progress. If u. S. Companies continue to be at a competitive disadvantage because of the trade deficit with china, how can that help American Workers keep their jobs . We think the way to address that is to help grow exports, not to limit imports. That is what we are trying to do tomorrow in new york. It is the third such series, with three more to go. We focus on important markets or Important Industries to help u. S. Companies Better Connect with opportunities to export their goods and services overseas. What do american businesses tell you about the chances to expand, to export, to get a market goods and other markets . It depends on what the market is. China clearly has complexities and barriers. That is especially acute for small and mediumsize companys, which we are here to help focus on tomorrow. We have commercial trade representatives from a number of offices in china that are here to help them access point can be a difficult market. Have the chinese been receptive to american overtures, when it comes to talking about trade deficit and currency . Is an ongoing project. Currency is just one issue. The chinese realize fundamentally they are shifting their economy from and i sort of an economy to a consumer driven economy. If they are going to enjoy the same sort of growth they have in the past, they have to do that in partnership with other major world economies. Lets talk about a trip that you and the commerce secretary took recently. You were in poland and turkey. You lead a delegation of u. S. Business leaders there. Why those two countries . President sted the export council. Its made of of 16 ceos representing our most Important Companies in the United States. Over 800inesses come billion of total Market Capital representative of the pack alone. Served as a Factfinding Mission to go back and report to the president about opportunities to Access Global markets, to help american the sale ofrow goods and services overseas, and address any issues they find. As you know, some of these missions are fraught with geopolitical risk. There could be domestic political tensions, especially in those two regions. You have turkey in the fight with the Islamic State militants , and things going on in poland because of its proximity to russia. How do you navigate through that . That is one of the key parts of this mission, which is really around commercial diplomacy. The secretary has been quite articulate about the importance of commercial diplomacy. Thats using commercial and economic leverage to drive diplomatic and strategic agendas for the country. How do you promote export expansion while at the same time protecting american jobs . I dont think those things are mutually exclusive. The fact is, we need to continue to grow the economy. One way to grow the economy is to grow our exports. Growing mystic economy less rapidly, coming out of the financial crisis, looking to global markets, which are often growing more quickly than domestic markets, is a real priority. Where things stand with congress and lawmakers granting president Obama Trade Promotion Authority . Authority, can deals go through . Can we get the most we are looking for is a country without the president having that authority . The president and secretary have been clear in their support and request for tpa. To get major trade agreements done. The question is not whether those deals can get done without tpp, tpa, the question is can they get done as effectively . We believe that if Congress Grants the president trade promotion authority, that is the biggest and best way to ensure the best trade deals for our country. That authority and really show what it is made of if there arent any amendments. If there is nothing attached to it. It has to be a straight upanddown thing. That is what tpa is, but not at the exclusion of making sure the Congress Remains informed about everything we are doing in the context of negotiating those important trade agreements. Stephan seelig is the undersecretary of commerce for the International Commerce department. Thank you for your time and. It, it isor to pull not all about the burritos. Expansion is on the menu, with an italian flair. Bottom line, continues in just a second. Welcome back. Think of chipotle, and you think of tacos and guacamole. Yet, the fast casual chain has been a slowly expanding its food with integrity, fast casual model to other types of food. Investors are eating it up. Carol massars sampled some of chipotles latest offerings. And didnt bring any. [laughter] i will next time. First, they expanded into Southeast Asian food. They did that with chophouse. Now, they move into pizza. It involved a secret collaboration with two very wellknown boulderbased restauranteurs. This week, they opened up their second location 16 months after opening the first one. Start with a crisp, highfiber crust made from freshly milled fiber flower. Top with fresh to me to sauce and fresh mozzarella, and bake for two minutes at 1000 degrees. This is chipotles take on pizza. I would say we are doing very well. It is growing faster than chipotle did in the early days. Founder to pull a chipotle founder partnered with two other restauranteurs to launch a pizza restaurant. The goal was to bring naples to a city near you. With chipotles backing, they opened a second fast casual location over the weekend. Further expansion plans are in the works. They want to keep the food as accessible as the burritos, tacos, and waccamaw lee made fashionable by their partner. Like to pull it, prices are higher than at most fast food restaurants. Nevertheless, prices are competitive. A margarita pizza will cost you five dollars and five cents. To 5. 50. 3. 50 there are no freezers. Food is made fresh every day. They are sticklers for details. Every location includes a prosciutto slicer, and a unique oven. We created to simulate the perfect spot in traditional ovens. You designed this . We did. The flour is hand milled onsite. We will take pizza to wear was 150 years ago. Even the environment for the uncooked dough is a priority. This is a tempter controlled room to simulate the temperature and humidity of naples. Scaling these details into new markets as a challenge. They set a target for a rate of expansion, nor will they disclose the terms of the financial deal. They are excited by early results. We have heard investors and others say that they think that pizza could be bigger than chipotle itself. If that happens, that is great. What i will tell you is that he wouldnt be more specific about expansion plans. He did say chipotle is looking at to markets outside of colorado. See these int to the same neighborhood or same block. They played to the same demographic. Im about to eat my tie. [laughter] are they looking to expand this model even farther . I keep pushing him on this. When they first talked to the store, hef this pizza was impressed with how they did restaurants. He talked to them about doing greek food. Maybe we could see Something Like that. What he did tell me is they are not actively pursuing other ideas. They think about other cuisine that they could do with the chipotle model. The fast casual, fresh food, Sustainable Food idea. This is interesting. Talk about to pull a chipotle, this is breaking the model. This is not what chipotle was supposed to be about. This was mexican food. The model works with other types of food. You can see the battle in the fast food industry. Traditional is having a tough time, folks like to put way chipotle are doing well. Thank you. Its 26 minutes after the hour, which means bloomberg is on the markets. Scarlet fu is standing by with details. Celebration of the september jobs report was shortlived, as was the rally. The s p 500 is down. It opened higher. The you will notice is small catch is leading the way now. That will drag on the broader market. Gold futures continue to rise after falling to as low as 1183 early today. Anticipation that chinese buyers will step in on wednesday. Individual movers we are watching hewlettpackard rallying as much as 6. 6 . The company is a splitting into two parts. Hp says this move will allow to better adapt to changing technology, and generate more shareholder value. We will be back on the markets in 30 minutes. More bottom line, after the break. I will come back to the second halfhour of bottomline on Bloomberg Television. We have breaking news at this hour a Spanish Health care worker has been diagnosed with ebola at a madrid hospital where two patients have been treated for the illness. Its the first case of a Health Worker becoming infected outside of west africa. That the showed medical team diagnosed to treat him was infected it was a nurse who treated a priest that died of ebola last month. This diagnosis adds new dimension to the ebola out rake which has killed more than 3400 people, mostly in getting, sierra leone, and liberia and west africa. We will have more details on this breaking story and bring them to you as soon as we get them. In other news it should have been a great job on friday 240 8000 jobs created in the United States and a 5. 9 unemployment rate. That is creating so many jobs is so key, why are wages actually falling . Thats a question for our economics editor, michael mckee. Its a luncheon puzzling a lot of people. It comes down to supply and demand, you would think. The weight it is supposed to work, demand goes up, supply goes down and then we see the price is not going up like it is supposed to. So what happens . We dont really know at this point because we are still waiting to see why that is. Up,nd for workers is going the supply is going down, but wages are not one rising. This is a conundrum for janet yellen who says we will know its time to raise rates when we see wages rise. Janet yellen thinks there is a lot of discouraged workers coming into the labor force holding down wage growth. The economy has created almost a million jobs in last four months postop in the last four months. The Participation Rate is still falling in the labor force. In recent years, the historical relationship between wages and workers has broken. During the recession, the supply of workers went up and demand went down, but wages did not fall as they should. They did not know up much, but they did not go down. So does janet yellen keep rates low in the hope that this eventually works out or does you raise rates because theres less in labor market than she thinks. But theres no right answer, is there . That is the bottom line. If we a