Ignitionrelated. You hit aied that if pothole, fairly common, or your knee bombs the key knee bumps the knee, it could switch your car off. Andering the power brakes power steering useless. It is a different switch but the same engineer designed it. That is why they have recelle 3. 16called these million vehicles, a total of recalls to more than 20 million so far this year today. That is more than two years of gm sales, and more than all of the u. S. Auto sales. We are hoping for about 16. 1 million sales for every company in this country this year. It is something gm has to get out of the way before mary barra testifies. They want to take a kitchen sink approach and make every recall possible. They will try to get him in, fix them. They have not made a dent in the first almost 2. 5 million cars they recall. They will start working before she goes in to get questioned so she can say we are doing as much as we can. Has been facing lawmakers and the press. She has been facing shareholders. What more is going to be asked of mary barra . I am not sure anything more will be asked. It is what more she will answer. When this first arose, she did not know much about it. Maybe she was being counseled not to know. You could see a change in mary barras character from the first few times she faced questions until now. She was clearly being counseled and being told what to say, being coach. She was new to the position and had just found out about the problem. Now she seems to be more sure of her self, more confident. Divulging a lot of information. S will be disappointed with that. She will be giving the details of the report. Almost certainly none of the members of congress have read it all themselves. Click thank you, matt miller on gm recalls. Shaking, bill and Hillary Clinton both support and estate tax to keep the u. S. From being dominated by inherited wealth. They do not want to pay it all themselves. The clintons are using Financial Strategies that help the wealthy shield some of their estate. They have established a trust and have shifted their new york home into it. That could save them hundreds of thousands of dollars in estate taxes. Hillary clinton drew attention to the couples finances saying were debra after leaving the white house. Broke afterdead leaving the white house. Whont to bring in david, worked on president obamas race and managed his campaign. You read the story on the s use of legal Financial Strategies. Some would say this seems hypocritical. I think it makes the case for tax reform. Thosell have to answer questions. My suggestion would be to say this is why we need tax reform. Simpler, fairer reform on the corporate and individual side. These are legal, most people will use them. It makes a compelling case for tax reform. This all the time from Hillary Clinton made comments about estate taxes with Warren Buffett at her side. Warren buffett takes advantage of the very same tax policies that he is criticizing. That tax reform is changed, i am going to continue to use some of these advantages. Doesnt that strike you as hypocritical . I do not. I think that there are shades of this. There is the most aggressive, right up to the line. Some things met romney utilized bothered voters in 2012. Says is an argument that you should not utilize any of these legal instruments if you are going to criticize it, exactly. It is a more compelling to say this is the law. They will have financial help, accounting help. We need tax reform that is more simple. This is what makes the president ial campaign hard. It is an obstacle course. Every day you will be pressed not just on your position but on your personal approach and behaviors. Hillary clinton going to have to be more transparent about her financial situation . The lesson of 2012 it caused mitt romney great problems. Not just what he did, is what he tried to shield. Is alwaysansparency the best recourse in a president ial campaign. Or else you will be consumed by questions and people will believe the worst. You have no option but to be as transparent as you can. Or else it will be filled in by your opponents and the press. What could they be hiding . The 2012e referring to campaign when democrats were asking mitt romney to disclose more of his tax returns beyond 2011 . It was the tax returns, which offshore havens he was utilizing. The situation around him leaving bank capital. It a period of weeks, consumed the campaign and prevented them from talking about what they wanted to talk about. Every question that is going to be asked, you have to prepare an answer and understand you might things youpress for are not comfortable discussing. Hillary clinton will be a strong candidate. On the republican side, it is not just how strong you are on paper, it is how you can transact the campaign. Becoming harder and harder every year. , romneys Mitt Romney Campaign said he was only going to disclose what is required. He disclose what was required of any candidate running for president. Hillary clinton is asked to give more Financial Information than what is required, is she going to do that . Question ofon the tax returns. There is no requirement to release her tax returns. There was a political tradition to do so with the parties. That is the standard. Rand paul,nton, marco rubio will have to make a decision about what kind of taxes to release. There is a standard. If they fall short of that, they will face hard questions. Did she make a political gaffe when she said she was dead broke coming out of the white house . We are not even in spring training of the 2016 campaign. None of this is going to matter in the spring of 2016. This is a learning period. The next morning, she understood it was not the answer she would have liked to get them corrected it. When you make a mistake, you are going to make a mistake running for president was that in a state was that a mistake . She said it was inartful. Her answer the next day was that they have been blessed. Talking about the fact that she and her husband have the ability to make personal money and raise money for a foundation that is doing a lot of good. Accurate . Oke, is that they left the white house with millions of dollars of legal bills that had but they have the potential to make money quickly. That is not the situation most americans face who are going through financial hardship. She recognized, did not dig in and defend the answer and the next day said let me clear up what i meant. Bloomberg contributor david forffe, former adviser president barack obama. A plain old alice off the ball. A plain old vanilla soccer ball . This is a power source. The whiskey that wants to be a challenge to jack daniels. Stay in the loop. You are watching in the loop. A look at our top headlines. Making it easier for you to comparison shop. Walmart and other retailers reached an agreement with the new York Attorney general to provide unit pricing online. Costco, walgreens, and cvs will put you prices on their webbased platforms within nine months. Interfered with a contract between macys and Martha Stewart when it cut a deal to sell home goods. A judge made the ruling yesterday, ending a 2. 5 year legal battle. The judge said jcpenney should not be punished. Need regulation, the message from 100 scientists who wrote a letter to the world health organization. Saying the organization should support marketing regulations and efficacy data requirements and protection for bystanders from secondhand vapor. Ecigarettes causing new issues. Back in washington as the u. S. Weighs military options in iraq. Fighters from al qaeda Breakaway Group clashed with iraqi forces 35 miles north of baghdad. I am joined by paul brouemmer, president ial paul bremmer, president ial envoy to iraq during the bush administration. Phil mattingly as well. Let me start with you on these trips. The president informed congress he sent 275 troops to iraq. They are being sent almost entirely for protection reasons with the u. S. Embassy in baghdad. The president also met with his Security Team to start weighing options. Heres what is on the table. Airstrikes are something the administration has opened the door to. Drone operations are something they are looking at. Another possibility is a limited number of special operators entering the country. A key point we have been told, u. S. Officials saying the operators would not be used for combat but they are essential if any type of road operation is to occur. U. S. Forces will need to be on the ground for targeting and intelligence purposes. Lots of action but no concrete moves. Ambassador, you say that we need boots on the ground. Yes. Thatally along the lines were just describe isis, it has been moving very fast, it has some weaknesses. There are not many of them, they number in the thousands. They are lightly armed and they are unpopular. You cannot go around executing prisoners of war and be popular for very long. Wo military objectives. Stop the southward movement of the isis. Air strikes onre their lines of communication. Secondly, help the iraqis retake the city, which will require drone attacks. You cannot do either without good intelligence. You will have to have intelligence collectors, special forces of some kind, fire control people on the ground. I think we should insist that we get a status of forces agreement for the servicemen. What size of an operation are we talking about . That i would leave to the military planners. The important thing is to get moving. Time is wasting. The president made his speech on friday. Ests there it is now tuesday morning. Phil, no appetite. Out a few years ago, there is no appetite among americans to go back to iraq. No. No appetite for americans to have troops pretty much anywhere. An issue the Obama Administration is having a difficult time with. They have citing pulling out of iraq as one of their primary foreignpolicy agreements for the last 2. 5 years. This First Campaign was run on getting out of iraq. Theyre faced with a complex and very fastmoving issue. It has thrown them for a loop. They have a lot of options on the table, but how quickly they move. They are staring at this situation and saying i cannot believe we are dealing with iraq. Ambassador, you are saying isis is vulnerable. Are they well funded . They are wellorganized, there are not many of them. They have owner abilities in their lines of communication living back to syria. They have pinched a lot of money from the banks in mosul. Ourpresident identified major interests on friday when he said it is not in our interest that this terrorist group should gain a foothold in the heart of the middle east. This is not afghanistan behind mounds mountains. This is in the heart of historic arab middle east with a lot of money. The idea of isis getting control majorq should be a problem for america. That is the interest we have to focus on. Explain more about how they are funded, and ambassador. To takehave been able over a lot of the eastern part of syria. Theyre getting funds from some elements of the gulf states, as al qaeda did. Al qaedatype organization. They are so extreme al qaeda has declared they are not part of us. They are funded more or less as al qaeda has been funded. Phil, and the possibility on the financial side to weaken this group . Difficulty the u. S. Treasury has been effective on the sanctions regime, antiterrorist sanctions going back to the bush administration. This group is largely rating banks raiding banks. Pulling millions of dollars out of banks with each town they move through. That limits what the u. S. Can do on that front. Phil mattingly, our white house correspondent. Also to ambassador paul bremer, former envoy to iraq. Cashing in on the world cup. Winners in brazil that have nothing to do with soccer. A Court Case InvolvingMartha Stewart may be coming to an end. Are watching in the loop. Live on bloomberg television, streaming on your phone and bloomberg. Com. Almost 26 minutes past the hour, bloomberg is on the markets. Slightly higher. Lots of data in a few moments, including cpi, a measure of inflation for the month of may. Expected to be up by. 2 . Expectedtarts at 8 30, to decline by almost 4 . Building permits will be out. On the markets again in 30 minutes. In a dramatic move, usa 5 ofted ghana 21 on day the world cup with goals in the opening and closing minutes of the game. Inside the world cup and the billions spent on stadiums, hotels, and airport upgrades. Protests have erupted as brazilians claim more money should have been poured into Affordable Housing, schools, and hospitals. There is a class of investor that is happy to leverage the new reality in brazil. Real estate investors are buying, modernizing, and hotelsing apartments, offices and data centers. Tom schapiro joins us, the founder and president of gtis partners. Half of your business is in brazil . We have invested almost 1. 5 billion in brazil. You are doubling down . Things havelly, changed dramatically. We do not see a good scenario for 2015. A lot of capital has exited brazil. We believe brazil is short term going to be rough and longterm the fundamentals are strongly in place. We investedons still exist. Which are . Very young population, the average age is 27. 5 years. 45 of theg to population at working age. Brazil produces iron ore, soy, top 10t is becoming a oil producer. A dramatic shift in the population out of poverty. Theears ago, 55 percent of population was impoverished. That is down to 25 . Judging from what you have seen on the news out of brazil, that is not enough. When people have more, they want more. Once you leave poverty and you become part of the middle class, you want a car and a house. Understandable. Brazils going through Structural Reforms with a lot going on. Result brazil went through the financial crisis beautifully, but given the fed tapering and the commodity downcycle, china slowing down, that has affected brazil. They havetion, 6 , raised Interest Rates to 11 . The currency has come down. That has made the emerging middle class feel like they have been left behind in the growth story, which is why you are seeing protests. And there complains that there is a lack of Affordable Housing. Is there . Absolutely, there is a housing shortage. We build a ton of Affordable Housing. We have built about 15,000 units. One of the best opportunities is in the Affordable Housing sector. We are more nervous in the middle income sector. Why did supply diminish on the affordable end . It hasid not diminish, gotten left behind. They need to build 15 Million Units at of a population of 35 Million People. Brazil has always been behind from a real estate perspective. This is a fastgrowing economy. 7 gdp growth, a lot to catch up. We have been in this tremendous cycle with tremendous growth through the whole downcycle. One bad quarter. I remember. We have sailed through. Given the tapering, the commodities cycle, china slowdown and government policy issues, things have gotten tough. 2015 is going to be a tough year for brazil. Why we think it is a great time to invest, if you believe in the longterm fundamentals of a ,lace in capital starts to flee it is a great time to invest because the liquidity price is down. We can be a liquidity provider to the market. Is it hard to do business in brazil . It is complicated. Why do you do it . The margins are worth it. How do they compare to the u. S. . Pointsto 500 basis overall. Our portfolio leverage is only 2 in brazil. We generate highmargins. A Typical Office or industrial building, 16 on cost per cap rate. Any majort of market. 100150 basea point spread. Housing starts, 6. 5 decline in Housing Starts for may. Down more thans expected, off by 6. 4 . Inflation month on month a little higher than expected, up almost. 5 . Core cpi also coming in a little tighter. Mike mckee is standing by with more on the breaking news. Arenflation numbers interesting, that is one of the feds pillars. Looking to see inflation go up. They are not following cpi. Well for morede inflation. Is this the inflation you want . The push was in energy, up. 9 in cpi. They strip that and look at the rate, the core influenced by a bigger than expected rise in services. Up. 4 this month. You will pay more at the dry cleaner and things like that. Housing was up. 3 . Some inflation working its way into the economy on a yearoveryear basis. 2. 1 cpi. Housing is a key to growth, this is a little bit of a disappointment because it is not as much as expected. A decline was forecast and we are still in the more than one million range, just barely. Suggests housing has not dropped off a cliff. Maybe a bit of payback from what we saw last month with a 14 increase. Most of the drop was in multifamily, that increased 30 last month. Not a bad report on Housing Starts. Youheadline not as great as would think, something to keep an eye on with inflation. There anything here that causes you concern . No. We view that we have been under producing for a long period of time. We have a population of 86 Million People entering the workforce that need housing. We have been producing households 1. 2 million households a year for 40 years. That is coming back. We see a Housing Market that has not recovered and amazing affordability and credit coming back in. This is going to change monthtomonth. It is more a regional story the national. Tremendous opportunity and have invested over 1 billion in the u. S. Housing market over the past couple years. Thank you so much for joining gtisom shapiro of partners. Harnessing the energy used to kick a soccer ball as a way to keep the lights on. Check under the hood of formula one racing. They might be ready to put the brakes on their partnership with f1. Stay in the loop. You are watching in the loop. Musk for tesla and elon in the fight to sell directly in new jersey after being blocked by a state Motor Vehicle commission. That includes members of Chris Christies cabinet. The state assembly has approved a bill that would allow sales directly from the manufacturer. It will head to the state and it before crossing kristis desk. Chris christie has said he would not bypass