On companies that maintain a lower taxdress to bills. Stocks are falling around the world, as europe is down. Iron ore has fallen before below 80 a ton for the First Time Since september, 2009. The u. S. And arab allies have expanded airstrikes against the Islamic State into syria. Fighter jets and tomahawk missiles were used in syria in a bid to push back the groups rapid advance. For more on the bolstered efforts, i am joined by willem marx. This is a different operation and many of the arab partners are going nameless, but how does it compare to the group that went into iraq . Beene russians have criticizing the airstrikes. The french that have been cooperating with the u. S. Say they are leery about international law, and they might be trespassing on sovereignty. The u. S. Is taking some criticism from allies and russia. Turkey is on board. They are on board, and a lot of the diplomats that have been held by Islamic State have recently been released, and that frees up their hands a little bit. About a groupking that i was worried about, and now i am worried about it. Tell us more. Eight of these strikes were group,ng this specific led by an al qaeda veteran who spent many years in. In iran. He and his group are very involved in trying to recruit westerners. They have no fight against bush are all shot bashir assad. Concern to Many Americans ising up to this headline is this another step that brings us closer to u. S. Troops on the ground. On,ill have Michael Turner and many in that party are calling for boots on the ground. That is something the administration has categorically ruled out. I think it is unlikely we will see that in syria anytime soon. Willem marx, thank you for joining us. Back to the u. S. , avi is it taxng shyer to reduce bill. The u. S. Is calling for a crackdown on tax and version. I am joined by peter cook. Break this down for us. How does treasury secretary jack lew plan to Keep Companies from moving overseas . He will make it more painful, at least in terms of making paying their taxes. There are a couple of steps the treasury announced. They go further than a lot of people expected. A crackdown on what is called loaning to ans foreign entity and avoiding u. S. Taxes now, a lot of those loans will be treated as a u. S. Event, taxable. There are now new rules regarding ownership stakes in these companies. If you merge with a Foreign Company it has to be very controlled in terms of how much the former u. S. Ownership how much they hold of that new company. Taxe will be tougher treatment of spinoffs overseas spinoffs it has a lot of companies have been using those because a lot of companies have been using those rules to get around paying taxes. This does not affect retroactivity. It does not reach back in time. That is a plus for companies that did yields in the last few weeks or months, but does not affect, of course, the eighth pending deals right now that are in play including the burger some tim hortons deal, and of these that you see here. I am sure it has all of those bankers biting their nails. For more perspective, i want to bring in the president and ceo of the organization for international investment, the trade group that represents the u. S. Operations of many Foreign Companies, and one of them being shier. What, your reaction to treasury secretary jack lew has announced . Does it change the math . Does it put pending deals on ice . I think what the treasury did will make it less profitable for inversions, but not unprofitable. The question we want to as is do we want to spend our time punishing Companies Rather than devoting energy to an all hands on deck effort to modernize the tax code . My organization represents 170 u. S. Subsidiaries of Foreign Companies. These are companies that have jobs ando in source shyer is one of the members as are other takeover target. They have an impact on the u. S. Economy. They punch above their weight. Even though they represent less than 1 of u. S. Businesses, they employ 5 of the private sector workforce, produce over 6 of the gdp, and pay 60 of u. S. Corporate taxes. Our biggest concern is while the treasury and congress is focused on punishing these deals, Foreign Owned Companies will get caught in the crosshairs. And if you look at why these companies are going overseas, it is about getting their hands on foreign cash, right . Absolutely, but inversions are the symptom, right the problem itself is washington keeping themselves globally competitive. Rate99, the Corporate Tax average was 35 . 34 , just today it is 24 and the u. S. Is still at 35 . Over that same time we have lost our share of foreign direct investment. There is a linkage. We need to focus on underlying problems rather than get distracted by inversions. Peter, i want to bring you back how does secretary of the treasury jack lew respond to this . First of all, he would agree to the ultimate solution of an all hands on deck effort to get Corporate Tax reform, maybe comprehensive tax reform. Nancy mclernon knows as well as anyone in this town it is not happening anytime soon, and in the meantime what the treasury argues is these deals are egregious, in their mind, unpatriotic, as the president said. These deals are simply to avoid paying u. S. Taxes and not for business purposes and they represent a small sliver of the International Transactions happening. They support crossborder deals, just not these kinds of deals which seem to be intended simply to avoid paying u. S. Taxes. Peter, this of course is the executive action president obama promised. How likely is it we will see Congress Move on something substantial . That is a question on if what treasury secretary have done will get the fire moving in congress. Ony are not that far apart the basics, but the details matter, they are a long ways off and a lot will depend on the midterm election. Nancy mclernon, in terms of your clients options, is this a roadblock or something they will be able to circumnavigate . It is one more thing that prevents u. S. Competitiveness, and the administration has actually made attracting Foreign Investment and economic priority. They spend resources and taxpayer dollars on trying to bring foreignowned companies to the u. S. , and even though Foreign Companies are not the target, they easily could become the collateral damage. Some of the congressional polls that have been introduced would encourage foreignbased companies from having top management in the u. S. And would impact their ability to expand here, so, you know, we are in this very political environment right now, and it is sucking the oxygen out of the room. Ourinversions are taking attention away from trying to get to the real solution and that is the focus on Corporate Tax reform. How nervous are your clients . Our clients coming up with contingency plans . You know, it has to impact how they view the u. S. It changes the Business Model of how they do business here. Even if they are not a target, they may be impacted by legislation. And chiefclernon, washington correspondent peter cook, thank you both for your time. Still to come, they netted nations tries to reach a deal on cutting greenhouse gases, but india and china are no shows. Stay with us. Were just getting started. It is the first day of fall here on in the loop. We will be back in two. Withesident obama, along 100 World Leaders are headed to the United Nations amidst the airstrikes on syria, with the focus remaining on Climate Change. Julie hyman has been looking into the issues here in the u. S. , and of course we think about the drought in the west and the hurricanes in the east any sense on what kind of economic toll these indications of Climate Change are having . Well, we have seen the economic hole already from those examples you mentioned in california, the drought, Hurricane Sandy hearing that to thest, and according epo, we might see more of these effects. They looked region by region. You could see water changes with less snowpack in the winter, and also more rain in the winter and less snow, so what effect does that have through the year . The southwest drought, which we are already seeing there is a great risk to the water supply with the aquifer not being replenished, and talk about Human Health Risks this could be anywhere. The change and spread of diseases, especially in sexborne diseases, as a result of what we see in fact insectborne diseases, as a result of what we see from Climate Change. Giving those alarming warning signs, what do a Missions Look like from the u. S. . Overall, there is a 2. 5 increase predicted this year for fossil fuel and cement in nations. If you look back in 1990 through the end of this year, you are looking at a 61 increase during that period of time. I country, china has the big by country, china has the biggest. If you look at it per capita, the u. S. Is still far and away person. Est polluter per of course, china has a much larger population. China, however, has just overtaken the eu per capita in terms of global emissions. Julie hyman, thank you so much. For more on the Global Campaign to combat Climate Change, we want to bring back one of the world first socalled Global Warming worriers. Which organized the march of this past sunday which brought hundreds of 50 hundreds of thousands of people out into the streets of new york and worldwide, 2600 marches. Very impressive. Welcome to in the loop. Good to be with you. Given the enormous scale of these marches, explain why you feel we are at a Tipping Point . I hope we are at a Tipping Point. We have known for 25 years what is going on, but the power of the fossil fuel industry has been powerful enough to prevent action. People are catching up to that and building a movement that can stand up to the garage all caps the oil industry can throw at this problem. We do not have that kind of money, but a lot of bodies in new york and other places last weekend. Sunday evening, the Rockefeller Brothers said they would be divesting investments in fossil fuel. How big of an impact will that have . This is a big impact, the forcing ssil fuel fortune, and the heirs think it is unwise and immoral to invest. What excuse do the rest of us have . Oxford showed this was the Fastest Growing campaign in history, and it is powerful to see how many governments, universities, Church Denominations this summer, the World Council of churches are visiting 580 million churches said we would no longer participate in investing in fossil fuel. And the diversity of people that turned out on the street, it was remarkable. It was not the usual suspects. Kimoon, chemo, ban bill de blasio, celebrities. And frontline communities that have felt the impact. It was powerful testimony. I am curious about what you thought that your thoughts on the role of businesses. Ban kimoon pointed to blackrock 346 Institutional Investors to call for a price on Carbon Emissions and a climate a mission to shift copies away from fossil fuels. How much will that help . That will help you the rest of the industry has left this to the fossil fuel guys, and they have a huge interest in making sure we never change, but now they are beginning to understand theyre facing a carbon bubble that makes the housing bubble look small. If it is stranded assets in beneath the ground, should we ever take Global Warming seriously, it it represents a huge risk to investors and the wise ones are backing away. I like that a carbon bubbler makes the housing bubble look small. You wrote an article in Rolling Stone and said since president obama took office, summer sea ice has disappeared, sea water is 30 more acidic than quadra decades ago, and the creatures at the bottom of the ocean are feeling the brunt. California, one of the bigger states and countries, caught in a drought deeper than any time since europeans arrived. What kind of marks the you give president obama on his environmental policy . He has expanded the amount of territory or we can dig for fossil fuels. U. S. Has time, the passed the russians and the saudis is the biggest oil and gas producer in the world. You cannot have this both ways. If you are serious about slowing down Global Warming, you have to stop digging up more fossil fuel. President obama has done more than george bush, but i have had more beer than my 14yearold niece, two, so, you know 11 too, so, youh know fair enough. There is enough to the thesis that humans are warming the planet, but the question is if it is substantially different than natural variables going on in the climate. This is an entire new thing we are doing. The climate has changed at times in the past, but in this case we know why this happened. We are digging up hundreds of millions of years of biology and burning it and it is having the biggest effect that anything has ever done. We wish you luck. Bill mckibben. Stay in the loop. Back with more in two. Good morning, you are watching in the loop, live on Bloomberg Television, and streaming on mobile. I am Olivia Sterns, in for betty liu. Up tophilips is breaking create two separate companies. One company will focus on Health Care Equipment and consumer lifestyle products. Facebook wants to make it easier for advertisers to target you. The social network is getting ready to launch a new advertising platform this week according to the wall street journal. They hope to challenge google. 400 modelsrecalling because of a tropical trump latch release that does not work from the inside, meaning someone could get stuck inside of the car. Of the 244,000 and yes, i am told the trunk is actually in the front of the car. It is 26 minutes past the hour. Bloomberg tv is on the markets. Lets take a quick check of rightmarkets are trading now. Overnight, we had a bit of a selloff from europe. European stocks lead broadly lower. Stocks that are down by about 1. 5 . The benchmark in london, off triple digits, 116. Down by about 80 points right now. U. S. Futures at this hour are also moving lower following mondays selloff. The dows judges are also up, pointing to a lower open. Thats quickly show you what is happening to treasuries. Treasuries are railing a 10year yield is down by about two basis points, trading at about 2. 54 . Gold futures are higher. Copper futures, interesting gold futures are higher amidst a flight to safety on news the u. S. Has launched airstrikes in syria. Lower ontures were concerns of Global Growth but have turned round slightly. We will be we are on the markets again in 30 minutes. Well, the question this morning, why are americans buying more houses . Andting home prices fell new home sales were down 2. 4 in july. Michael mckee has some answers. Are a host of little reasons, but two main drivers one we knew about, the other surprising. Heres a surprise during the baby boom years, america got andied, they needed houses, bought a lot of them. Look at what has happened since the great recession. A drop was expected. Getle could not afford to married and move out, and we thought that we change the economy, but last year the Census Bureau said we added four hundred 76,000 households in the year ending in march, and that compares with households of 1. 3 million in each of the prior years. Why, we do not know it is a big flashing warning sign for the Housing Market. The is another problem new york fed did a survey of potential buyers why dont they buy . They do not have money for a down payment, they do not make enough money to qualify or the credit is not good enough. This has been an ongoing problem. The government tightened regulation. Make a loan to anyone with even marginal credit. The average score for a loan has come down, but it is still higher than at any time before the housing crisis. You can see what you needed back in the 1980s. We have a shortage of buyers, and many of those who could buy cannot. A car is a big investment like the house, but the automakers are not having the same problems. What gives . You are right. They dropped during the recession, and look at what has happened people with great credit can always get loans and buy cars. Look what is happening in the subprime market those with worse credit can buy cars. A lot has to do with how they are financed. The Auto Industry has Auto Finance Companies making most of the loans. These are the banks. They are not making a lot of loans to auto sales. Independent home lenders went out of business during the recession, so you do not have the same kind of market. Buckle k, economics editor, thank you. Michael mckee, economics editor, thank you. I want to bring in stan humphries. Mike is with us as well. What is your reaction that existing home sales fell should we be heartened that supply is clear the market, or concerned that demand is drying up . It was a soft month. Volumess are not by the they once were. If there is a silver lining, it is that firsttime homebuyers will find it an easy market to compete in. The problem, of course, is that the first time home buyers cannot get the credit necessarily because banks are restrictive on home mortgages. When did that change . In t