Is ukrainian Prime Minister tightening his stance on those who shut down the malaysian airline. He said they would be held accountable. Justicell bring to everyone responsible including the country which is behind the scenes. We go to Ryan Chilcote with more. The missilesaid that brought down the jet was supplied by russia. What increased rhetoric are you hearing . Basically, the u. S. Over the the separatists in the east of the country of a coverup. They said they have intelligence reports of this Missile System being brought into the east of the country. They have evidence of it just after that attack took place on brought out of east ukraine and back into russia. Correctly accusing russia of providing the weaponry in helping the separatists get the weapon out of the area. And we are just inkiev heard about increased fighting in the Eastern Ukraine. Our business is functioning and how is life on the ground . Kiev, it feels like it is a million miles away from the conflict. The Business People said there is a feelgood factor. The plane crash has really shocked ukrainians and in many ways united them against the separatists. People are more confident than you might think. Come september, a lot of bad news will come. The currency has been devalued so all of the imported goods now will be bought in that d value currency and that will hit shops in the fall and there is the prospect of a trade war with russia which would mean that the economy will fall 6. 5 for further. What happens when it comes to the conflict . How organized are the rebels in ukraine especially around the crash site . I think they are more organized than you would have thought for what would be an uprising in the east of the country that began four months ago. They are less organized than most militaries and less organized than the Ukrainian Military which is not the most organized military to begin with. It is also using militia groups because they dont have the numbers to take on this fight. One thing the Ukrainian Government says is the reason why they are more organized as moscow is running the show. Thank you so much. Secretary of state john kerry is calling the separatist actions around the crash site grotesque. U. S. Is trying to turn up that heat on russia to intervene and deescalate the crisis in ukraine. Peter cook has more. It was a strong weekend for rhetoric out of d. C. How certain is the u. S. That russia played a direct role . No smoking gun yet though we had secretary john kerry on five separate sunday talk shows. He talked about the russian responsibility and said there is evidence pointing to the russians training the separatists on those Missile Systems. Over theofficials weekend said they had corps operated some of the communications between the separatists and the russians. Perhaps the best evidence we have seen so far comes from the Ukrainian GovernmentSecurity Service with pictures over the weekend showing a Missile System allegedly on a flatbed truck heading out of Eastern Ukraine and back into russia. Has not drawntes of the stink conclusion that russia played a direct role but certainly the rhetoric ramped up over the weekend from secretary john kerry and the president friday and they are trying to isolate Vladimir Putin in russia and put treasure on him to do more and finally accept the pathway to deescalation of this crisis in ukraine. Next for thebe u. S. Government . Companies will get involved at some point and ramp up sanctions. At the end of the day, it is up to europe . Thats right, the big focuses to put pressure on the europeans or encourage them to finally get more serious about the sanctions. Here is secretary john kerry over the weekend. The United States has been europe diligently with trying to bring europe along. It included additional sanctions. Need to beey may tougher. It may well be that the dots and others will help lead that effort because this has to be a wakeup call to europe. This has to change. Some of the others include the u. K. With Prime MinisterDavid Cameron considering pushing for tougher sanctions on the entire Russian Defense sector and some of the countries that have been most reluctant like italy which relies on mayia for its Energy Supply be coming around and be more supportive to the idea tougher sanctions. See tougher sanctions on companies with european leaders meeting tomorrow. John kerry is on his way to egypt to relieve tensions in the middle east. What is the goal there . Hes trying to restore a ceasefire put in place in 2012. He will havear success with that with the United States walking a fine line between supporting the israelis ability to defend themselves or try to deal with these tunnels leading into israel from the gaza strip. At the same time, having to acknowledge the civilian casualties. Wellilitary casualties as john kerry would like to be a broker for peace and he is trying to get help from the egyptians and getting that end result but it is not clear he will be successful but he is making the effort in the United States is right in the middle of middle east conflict as usual. Thank you very much. Robert hardy,n the head analyst at geostrat which Analysis Global strife. So nice to have you. According to your sources on the ground, do you feel that russia is responsible for this attack . Thank you for having me on. I think there will be no Firm Evidence that will prove this. All the evidence now which is very compelling is circumstantial. An sa11 missile that struck the airplane, they are both fielded by ukraine and a russianmade and they will have the same explosive signatures. I dont think the black box will provide any forensic evidence that will be compelling. The west is apparently made up its mind so does not matter. Agree with john kerry saying this is a wakeup call . It will be difficult for the European Union to get all 28 leaders to agree on putting heavy sanctions on russia. It will be very damaging for their economy. I refer to it as mutually assured economic discussion and i dont see that coming. I saw Vladimir Putin earlier this morning on tv looking for cooperation in investigations in the crash. He looked drawn. Perhaps the sanctions could include industrial goods or military. France was going to sell equipment to russia. I think the french will go ahead with their deal. Minister walked into 10 downing street and was photographed with a document saying the British Government was against sanctions because russians helped support the city of london which is the financial capital. I cannot see all 28 members getting on board with severe sanctions right now. What is the next at them . Exxon,out Companies Like they are working with russia and halliburton and slumber j are in the country. What can they do . Not to mention gm and ford and Major European Companies who have more closure. Responsibility, they will have to go along with what the government says. Can they apply pressure on either side . That would not be their place and i think that would be unwise. Seeing as how bloomberg is in and for said and Information Services company, i would like to propose that the u. S. And russia, the two big dogs in this fight, get together and make a major geopolitical and economic deal before this thing gets crazy. For the u. S. Side, i would like theye private interests are more competent than government i would like to see a negotiating team led by tillerson from exxon and the russian side led by the ofirman and ceo in Russia Energy production and those guys have made huge deals before. You want them to get together to make a deal . Have with me because we more to come. We have some breaking news on allergen. It will reduce its workforce by 1500 jobs. This is the Company Behind botox. Thisompany came out morning with secondquarter earnings that beat analyst estimates. Earnings per share came in at 1. 51 per share. Headline is they say theyre going to cut 1500 jobs and eliminate 250 vacant positions. The stock is up more than 50 this year. Nearly a 10 massed t to buy themvalian up and thats why stocks are surging. Thank you so much. Coming up, nearly 500 palestinians and 20 israelis have been killed as israel expanded its offensive in gaza over the weekend we are live from tel aviv with the latest and get ready to open your wallet a little wider this morning for the cup of joe. Starbucks is raising its prices. Will other coffee retailers follow suit . It is the Bloodiest Day of fighting yet in the gaza strip and john kerry is pushing for a ceasefire in the region. More than five hundred palestinians and 20 israelis have been killed since the start of the conflict two weeks ago. Lets bring in Elliott Gotkine who is in tel aviv. What can you tell us about what is happening on the ground . Im afraid its up to dressing way familiar picture. More rockets are being fired from the gaza strip into israel. We had air raid sirens this morning. More people are dying in the gaza strip as well. Forces asi defense part of their main mission of destroying the tunnel that hamas and other militants used to come into israel, they said they spotted to terror squads coming out of one tunnel it one of the militants were skilled in soldiers to engage the other 10. On one occasion, they discovered d tunnels emerging into a nearby kibbutz. Has life shut down there altogether . You got the major who areional companies saying that israels blessed by having a small domestic market. Business,rnational three percent of its profit comes from israel. Most of the factories in the towns near the gaza strip are struggling right now. Thank you so much. For more on the situation in gaza, lets ring back robert hardy. We talked about the solution for the west and russia and you turned to private companies. What about what is happening now . A much more difficult situation and more than just thomas and israel. There is also two factions of the sunniislamic world. You have turkey and those who support the Muslim Brotherhood put them in the says egypt and the Palestinian Authority soon to be joined by saudi arabia and jordan who are pushing the more reasonable solution. Typically, it seems in the circumstances, some of the fighting has happened and been so terrible the International Community cannot help but get involved and push for peace. Why havent we seen that yet . Is the militant gaza child of the Muslim Brotherhood. Their dedicated to creating a muslim state. They have never accepted a ceasefire until they can hang their hats on some sort of that they can call a victory. Israel is focused on destroying the tunnels. There are dozens of infiltration tunnels. Lord knows how many rocket firing tunnels there are. That could go very slowly. Should probably let hamas know they are under threat before they get any sort of truce out of this. Is israel taking a harder stance . Im suggesting that hamas will not surrender unless they think their regime is at threat. Israel Benjamin Netanyahu is plainly said he is out to destroy the hamas leadership which i think is a mistake. Willing tobe sacrifice anyone to get what they want. It is difficult for egypt to become the moderator it normally badecause its a very relationship with hamas and the Muslim Brotherhood. Who then will become the moderator . Perhaps the u. N. Im not sure the u. S. Has enough sway here. External events that have to happen for hamas and israel to accept a truce. Israel wants to destroy the rocket firing capability of hamas. Wants the siege lifted and the blockade ended and they want some of their operatives who were arrested released. These are baseless demands. Qatar is proposing that today. You are my expert when it comes to all things middle east. Where is the next outbreak of violence going to be . Iraq is the number one danger point in the world. Yesterday there were five car bombs set off in baghdad. Three were within 10 minutes of each other and the Islamic State is changing from a Guerrilla Force into a national army. I heard of fighting reported that the baghdad airport. That is 12 miles from downtown baghdad. Iraq thank you so much. Coming up, mark faber will join me for a look at the impact the global market. Stay in the loop. You are watching in the loop, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. For betty liul in and we are approaching 26th at sierra that means Bloomberg Television is on the markets. You will be jealous because its time for futures and focus. Our topic is gold futures. They are trading higher this morning after the precious metal suffered its first weekly loss in seven weeks. Kevin hoffman and scott bauer with may. Last week was a crazy newsweek. A commercial jetliner were shut out of the sky and israel started the ground war in gaza and things are going from bad to worse. Why on earth did gold fall in that environment . Gold is the area you go to when there are bad things going on in the world. Beenre right, gold has stuck around 1300 per ounce for months and months. Political actions that take it up and all of a sudden, it starts to fall below. One thing traders look at is the premium. How much do they have to pay for gold in their country versus the cme. On the bear case, there is china. Its premium is zero right now and its usually five dollars or 10. Thats a little bearish. On the Positive Side is india, they arent theyre the premiums are declining but that is considered good because they had a bit of a bad on gold employ its they had a bit of a ban on gold imports. We are heading into wedding season. The new president will want to make nice with the indians who like to buy glowed gold. So perhaps its the chinese premium dimensions that is putting pressure on the gold price. With that in mind, how are you trading gold now . There is also inherently about a five percent risk premium in the price of gold due to geopolitical tensions. Whats going on in the mideast and ukraine is horrible. All the fundamentals actually point lower. I would be short at the 1320 level. I would look to buy that back at 1300. Fundamentals are pointing lower and we have these tensions which is wrapping up the price. Thehich is propping up price. Everyone wants to see this go lower and i think thats where the pressure is. Put your trade in laymans terms scott is telling the selling gold futures for 1320 dollars now and hopes to buy them back at 1300. If the trade is successful, the total profit per contract is at least 2000. You say five percent of the gold price is risk premium but consider the events last week. A commercial jetliner shut out of the sky and things are going from bad to worse and a ground war in gaza at what point do you change your mind about the risk premium . If i see this thing trade at 1325 hundred dollars. You can tell that the pressure really is to the downside. If there was much more risk or are there were buyers flooding the market place, we could see this thing trading at 1350. The pressure is to the downside and i think that is what is keeping gold around the 1320 level. Bullish supplyside economics. Thank you so much to both of you. We will be on the markets again in 30 minutes. Thanks so much. I was jealous you got to talk about gold for five minutes. The maker of botox is cutting back reducing its workforce by 1500 jobs, 200 vacant positions will be eliminated. Seoul areials in trying to ban uber. they are telling citizens not to use it. There is a tainted meat scandal and china. One, is being accused of selling chicken after the expiration dates. In the u. S. Economy, what happened to the housing recovery . The First Quarter was going to be bad weather but now the job market will get that her and housing started to blondes last month. What gives . Going to be were clear sailing with gdp up one percent, what happened . It is a conundrum. Lost in the geopolitics last week, we got this on wednesday, Homebuilder Optimism rising to a sixmonth high. The winter is over and things should be Getting Better but not get that, the next day, we the big plunge in Housing Starts. Not only did housing start to fall almost 10 in june but may Housing Starts were revised lower. This is a bad thing not just for the builders but for the economy. Totraction and helping lead the firstquarter gdp fall and we are still short more than one million jobs in construction which means the economy. That issupposed to year be the year that housing got it back together. Nobody knows whats going on. There is one group that knows whats going on, the homebuilders. A lot of them are reporting their earnings for the quarter and will have Conference Calls this week. A lot of them build down south. Even with last month dropped, Building Permits are running well ahead of starts. Maybe last month was an anomaly, can we look at it like that . Is this a coiled spring or no momentum out there . New sales a been running at about the same level as starts which suggests they are selling everything they can build. Whats missing is