From bloomberg world headquarters in new york, i am mark crumpton.
This is "bottom line." a bloomberg exclusive interview with jack lew.
As nelson mandela celebrates his 95th birthday, maxine waters discusses his impact on the global community.
We will get a behind-the-scenes tour of the high- tech factory work has slow makes its model s. to our viewers in the united states and those of you joining us from around the world, welcome.
Su keenan looks at earnings from google and microsoft.
We have the latest on the senate deal on student loans.
First, a bloomberg exclusive.
Ahead of a trip that will take into russia, treasury secretary jack lew sat down for next clue so interview with peter cook.
He told peter he will be urging other g 20 nations to follow the u.s. lead and do more to encourage economic growth.
Back in washington, the secretary has his own challenges.
Peter asked him about the debt ceiling and whether the administration is ready to start negotiating.
Peter, we have been very clear.
The negotiation in 2011 over the debt limit led to a very bad outcome.
It led -- it introduced for the first time in our history a serious notion that there was a point of view that default was acceptable option.
It is not an acceptable option.
The president has been clear, we cannot negotiate over this question of whether or not there should be the option of defaulting.
Congress has asked to raise the debt limit because it pays the bills we have committed to.
We cannot introduce the notion that out will not happen.
We remain very open to the kinds of discussions that would bridge the gaps on fiscal policies.
We have shown that we are willing to go more than halfway to put on the table tough reforms, tough revenue policies.
The three-year anniversary of dodd-frank, the debate over this law continues.
I've spoke to this issue at some length this week.
I tried hard to lay clearly out how we view it.
It is a critically important that we implement the outstanding pieces of dodd-frank likely.
I have set the end of this year as the deadline.
I think we will hit the deadline and the sense of urgency is shared by all of the agencies.
We will see capital and leverage standards -- we will see mortgage rules that are clear.
We will see progress on the volcker rule.
We have a fair amount of work ahead of us, but since the day i stepped into office as treasury secretary, i have made it at the top of my list.
I went from the swearing-in of the oval office to chairing a meeting of the the financial stability oversight council.
I am determined that we will do as much as we need to to end too big to fail.
Let me asked you about the leverage ratio specifically.
One of the thing about financial reform, it it is not something that when we finished, we can take our eye off the ball.
When we cross the finish line and we implement the last piece of the dodd-frank, he have to maintain every day vigilance to make sure we are still keeping up with a constantly changing financial system.
We do not get to take off a day or a year.
We will have to stay on the job.
Leverage ratios proposed for the big banks go beyond the international standards that were set by basel.
Do you support those?
Will they put u.s. banks at a large competitive this advantage?
We have seen in the last couple of weeks two significant regulatory bodies.
They have put out proposed action that would very much increase the leverage ratio from the minimum set.
The policy is a sensible one.
It is a policy that says we are going to get to a level where institutions have to bear the burden of their own risk and have to have the m place to do that.
It is important to look at the basel rules, they were designed to be a minimum, not a maximum.
Our policy has been to seek harmonized rules as much as we can across international community.
To try to drive a race to the top, to have the best system in place that others will emulate.
In many areas, that is happening.
The rest of the world is catching up to the united states.
We did have a serious financial crisis in 2008. we did take the most serious action to get ahead of it.
We should be the leaders in the world.
Do you go to russia with any particular message for the russians about edward snowden?
I am going to a meeting of the g 20 finance ministers.
Are it ministration has spoken clearly to this issue.
It is a matter that -- our administration has spoken clearly to this issue.
You can see more of peter's interview with jack lew sunday at 11:30 eastern and right here on bloomberg television at 5:00 -- at 12:00 and 5:00. this year -- this week on local capital, john mccain will discuss his new glass-steagall restrictions bill.
We will have highlights on friday night.
You can see the entire interview with senator mccain on political capital friday at 9:00 washington time only on bloomberg television.
Let's show you how the equity markets finish today's session for thursday, july 18. stocks rose sending benchmark indexes to records as earnings from morgan stanley and unitedhealth group the estimates.
Jobless claims fell as we heard from ben bernanke.
The s&p 500 index was up eight points.
The dow jones industrial average of 78 points.
The nasdaq was up one point.
Let's get you the stories behind the numbers.
Su keenan the details.
Time the record high close, those better than expected reports, it put the balls on the run.
Morgan stanley is -- it put the bulls on the run.
Morgan stanley announced a $5 million stock buyback.
United helped jumped 6.5 as membership surged.
The decision on who buys dell delayed.
Shareholders arrive to their meeting and the battle moves into a critical arm-twisting phase.
Michael dell -- he gets an extra week to build support.
Big moves after , we will start which a publicly, gaining 5.6%. -- chip otle, gaining 5.6%. microsoft, a big miss.
Profits hurt i shrinking pc demand and an unexpected write- down of unsold surface tablets.
Another tech this, google's profit and sales numbers disappointed as it -- the measure of average fell.
What is not lower today?
Muddy waters predicted it would plunge.
A big surprise because it could be the first company to survive the harsh criticism of carson block.
He warned of potential fraud and projected a 40% lock -- dropped.
The stock rebounded as firms said they disagreed with the research.
Shares have -- it raced -- he raced.
Congress celebrates nelson mandela's 95th birthday.
How the foreign the democrat maxine waters joins us -- a california democrat maxine waters joins us to discuss his and her role of raising -- his legacy and her role.
? ? i would like to express my admiration , nelson mandela.
You are an example to us all of wisdom and grace.
We have been awed by his inspiration to serve.
Working to build a more just and peaceful world.
Nelson mandela is the symbol of what humankind must strive for.
Our work here on the international space station mirrors exactly what mr.
Mandela spent his life trying to accomplish.
That was part of a video released by the nelson mandela center in tribute to mr.
Mandela on his 95th birthday.
Washington also paid tribute to the former south african president today.
Maxine waters, members of the congressional black caucus, and house and senate leaders held a ceremony on capitol hill to celebrate his life.
In the 1980s, congresswoman waters was a leading voice advocating.
The congresswoman joins us now on capitol hill.
Welcome, thank you for joining us.
You are so welcome.
I am so pleased that you are covering nelson mandela's birthday celebration today.
Take us back to the 1980s. there was some pushback from american corporations and businesses who did not want to the vest from south africa.
The reagan administration initially was not board.
How are you able -- how are you able to convince business leaders and the white house the moral imperative superseded their bottom line?
We were not able to convince them.
We forced them by putting economic hurt on them.
That investment bill and the sanctions bill from congress put them in a very precarious position.
Their profits were threatened.
It was only when we were able to hurt them economically did they begin to fold.
That is what the investment movement was all about.
We said to those companies that were doing business in south africa, you are supporting apartheid.
As long as you say there -- stay there, you are part of the problem.
We were not able to simply convince them, but we absolutely put together a strategy that economically [inaudible] there was some concern that american businesses would suffer if they stopped doing business in south africa.
During the 1980s, south africa was a big player in the commodities market, holding about 50% of the world gold supplier.
Do you recall which businesses stepped up first and said, you do not want the money that badly?
What happened was some of the american firms tried an alternative.
There was reverent leon sullivan and they came up with the principal.
Those principles were designed to say that these american firms are going to act better in south africa.
We are not going to do what we have been doing in the past.
We will have some lunch rooms, some toilet facilities.
We oppose the sullivan principles.
They were not good enough.
It was simply a way by which to make us feel better.
We continue to oppose them.
Then i think ge and some of the others began to change their mind.
Johnson & johnson was one of them.
We put a lot of pressure on shell oil.
What was the turning point?
When did the boycotts and the arrests finally strike a chord with the public?
You were arrested on a couple of occasions.
I was arrested along with others.
Randall robinson was the head of the group called transafrica.
He led the organizing out of washington, d.c. eleanor holmes norton and the labor leaders got together and started their strategy.
We traveled across the country.
We would protest.
We would get arrested, but we would keep going back and back again.
This brought a lot of attention to what was going on in south africa.
A lot of the legislators involved, for the first time, understanding what was going on.
Many of those countries in africa were beginning to get independent.
South africa was the last.
We really had to work very hard to get them going , to give freedom to black south africans.
You have been privileged to meet nelson mandela.
What does that mean for your personally, to meet the man and witness history?
It was a defining moment in my life to be at that inauguration.
First of all, i was in awe at the formation being flown over the inauguration by the military.
This was the military that had enforced apartheid.
Now they were honoring these black -- this black south african who was now president.
He was a warm and kind man, it even told jokes.
I could feel his strength.
I admired him so much, got to know him very well.
When i finally repealed the divestment bill, he called me, i got this call in the night.
He said, it is time.
We have about 30 seconds left.
Your congressional district includes south-central l.a.. what do you tell your constituents about mandela's life?
His values, integrity, and how those things can chart a course in their lives as well.
We try to involve a lot of young people will we were putting together and welcomed him to los angeles.
We had almost 90,000 people at the coliseum.
They admired him because they like the strength, the commitment, the sacrifice he was making.
We always reminded them, if he can spent 27 years in prison and make that kind of sacrifice, you have to show what you can do by taking responsibility to be a good person and to reach out and fight for justice, equality, and freedom.
Maxine waters, it has been a pleasure.
Thank you so much for your time.
You are so welcome.
We will have the latest on a tentative deal in the senate to roll back the big increase in student loan rates.
? days after reaching a deal that clear the pathway for the confirmation of several of president obama's cabinet nominees, the senate reached agreement on another outstanding issue that has been hanging over the chamber.
A bill to roll back the interest rates on student loans that are set to double in the up humming school year.
Phil mattingly -- in the upcoming school year.
Phil mattingly has the details.
Lawmakers in both chambers have been fighting over how to deal with the increase.
It doubled to 6.8% from the level they were at at 3.4%. this benefits up to 7 million low income students.
Senate leaders from both parties announced they had agreed upon a deal that would charge flexible markets interest rates, three point eight percent for the coming academic year.
-- 3.8% for the upcoming academic year.
The compromise would pay all undergraduate stafford loans.
Before june 1 of that coming school year.
They would have a cap of 8.2% that would be put into lace.
-- into place.
It is likely to receive an vote next week.
Lawmakers in both parties have backed this deal, harry reid and democrats have wasted little time registering their displeasure.
Here is the interesting thing, harry reid rarely sees cracks and the united front of his democratic caucus.
We had elizabeth warren and jack reed give floor remarks opposing this deal.
They say they will have an alternative they want put onto the senate floor as well.
Not likely to imperil the bill.
Phil, joining us from washington tonight, thank you.
Can big data hack cancer?
? welcome back to the second half-hour of "bottom line." let's check where the markets finished today.
Earnings gains at major u.s. companies and encouraging economic news pushed record stocks to record levels.
The s&p was up half a percent.
The dow jones industrial average rising as well, up half a percent.
The nasdaq composite index was up just about one and a third points.
Let's check some of the top stories in the news.
Today, detroit became the largest city in american history to file for bankruptcy.
It is seeking chapter nine protection from creditors.
Speaking to reporters within the last hour, the mayor was joined by emergency manager.
We have to reinvest in the city, we have to invest in neighborhoods.
Ben bernanke was back on capitol hill today for his semiannual congressional testimony.
He told the senate banking committee that economic data since june has been mixed and he stressed that the fed will be watching the data closely as it decides whether to cut back on stimulus.
In southern california, more than 6000 people have been evacuated because of a growing wildfire about 100 miles southeast of los angeles.
Crews plan to build containment lines.
So far, at least six homes and mobile homes have been destroyed.
That is a look at the top stories.
It is time for the commodities report.
Su keenan is in the newsroom with some insight.
We will start with a pop quiz.
What high-profile economist admits he does not have a clue about gold prices?
Ben bernanke . this came out on capitol hill today when he told lawmakers that gold stock was not a bad thing.
The gold price going down is not necessarily a bad thing.
People are less concerned about really bad outcomes.
Nobody really understands gold prices and i do not pretend to understand them either.
Like he said it is an unusual asset -- he said it is unusual asset that people hold it as disastrous insurance.
Fiscal -- physical demand has kept gold higher in recent sessions.
Big moves and energy, this is to set up for tomorrow.
Oil is above 108. natural gas, which gained five percent in the regular session.
You can see unchanged and extended trading.
That raises a good question.
When does that cooler weather get here?
For most of us, how do you stay cool?
The official temperature hit 100 degrees this afternoon.
It was in the high 90's in central park.
Up and down the east coast, people got creative.
Natural gas has been on a wild ride as a result.
It is directly impacted by extreme weather and related demands for ac.
Volatility has fallen to the lowest in a week on signs that we will have easing on crops after this hot weather passes.
This has hurt the crops thus far.
Heat is expected to end this weekend with some thunderstorms.
Su keenan, thank you.
Hairy deep beneath mount sinai at oh there is a supercomputer that is -- buried deep beneath non-sinai hospital, there is a computer.
Olivia, what exactly is minerva?
The idea is to collect a vast amount of data.
We are not talking about symptoms or what drugs you are on, but patient details down to the molecular level, full dna sequences.
The goal is to better track and prevent disease and to better tailor medicines.
The way this technology works, it is fascinating.
They are using advanced mathematics, applying algorithms for forecasting the weather and market behavior.
The scientist take the data.
They are looking at their screens.
They are better to identify trends and predict risk.
One of the scientist i spoke to told me this was an information revolution.
With a smart computer, we can begin to collect all of the electronic health information and we can begin to learn about our patient population.
We can identify the at-risk population and intervene.
I realized this may sound a bit theoretical.
I will give you an example.
Let's take ibd's. it is a disease that doctors defined by symptoms or clinical data.
Excess fatigue or you get a reading of high blood sugar.
With this new information, doctors are discovering that there are hundreds of genes involved in diabetes.
When they can spot a trend and they can better predict risk and intervene.
Olivia, they are throwing big data at disease and it sounds a lot like what we just heard from the national cancer institute.
This is just what the mci said they have done.
I have reduced a largest database ever of cancer related gene variations.
They have 6 billion data points.
Same goal to better understand drug response and tailor treatment.
Minerva is unique and it is in mount sinai.
They decided to handle all of this data in-house.
It is an unusual investment for private hospital.
It can process 30 terabytes of ram.
It would take about 31,000 of the latest versions of the ipad2 process that much data.
Olivia, and thank you.
Coming up, in the nominations are out and there is a new kid on the block who is giving the big boys a run for their money.
? it is time for the annual hollywood tv showdown to to begin.
And the nominees are -- the emmy nominations are out and netflix is giving the broadcast and cable networks are run for their money.
For the first time, an online series has received a nomination.
I am joined by standard & poor's media analyst.
Good to see you.
House of cards, it is the series that has the distinction of getting that first online series emmy nomination.
Efflux picked up 14 nominations.
-- netflix picked up 14 nominations.
Netflix has become a bona fide hollywood content player.
We were very surprised by that, but it speaks to the quality of shows.
You have seen a very crowded field of top quality shows.
We have mobile phones, tablets, laptops, on-demand services.
They have changed viewing habits and the entrenched paradigm of what viewers want and when they want it.
It is all about on-demand right now.
That is the paradigm shift.
Giving consumers what they want to watch and when they want to watch it.
You will see a whole lot of on- demand platforms investing their aggressively -- there aggressively.
Why did they finally decide to embrace internet distribution?
They had no choice.
You have to respond to what the consumer wants and the consumer has spoken with the kind of viewership these shows are generating.
It was about time the academy could not ignore it anymore.
This was not something that just happened in the last year.
This has been going on for a while.
Is it about quality?
It has always been about quality.
The viewers are very discerning.
Competition has gotten brutal.
The quality of shows that hbo and showtime and some of these networks are putting on top shows and the viewers have become a lot more selective.
Can you put that graphic up again?
You were showing how many emmy nominations they have.
14 for netflix, 100 84 hbo -- 108 for hbo.
What are those numbers telling you?
This is the golden age of television.
It shows you -- the average consumer cannot even tell the difference anymore between a broadcast in the cable network.
Except for maybe sex and vulgarity.
But hbo is in a class of its own.
They have created more of a gap , securing twice as many nominations as nbc and abc put together.
The broadcast networks have multiple platforms to display their hit series.
Will they always have an advantage?
The broadcast networks, they have the advantage of aggregating demand for audiences.
When you think about what cable networks are doing, those guys view themselves more as broadcast networks and reaching the kind of audience.
What does it mean for content creators?
Content is always going to be keen.
This -- king.
This speaks to the ability to monetize content across various forms.
Netflix and amazon doing to create another layer of monetization, which did not exist a few years ago.
Let's talk about your ratings.
They are premium content providers, amc did fairly well with breaking bad and madmen.
If you are investor, you want to be one of these names produces content.
There are a lot of outlets.
The media analyst for standard & poor's, joining us in studio.
Next, we get it to her of elon musk's electric car company.
Behind the scenes of tesla, when we return.
? you are looking at live pictures from the site of an upcoming epic rematch between our very own peter cook and hans nichols against the white house economic team of gene sperling and alan krueger.
This is a revenge match.
Last summer , they beat our powerhouse washington team 7-4. according to gene sperling, hans and peter lost because they were looking for a leak.
This is the second year of the washington kastles charity classic.
100% of the proceeds from the $10 entrance tickets go to charity.
Tesla pumps on an average of 500 model less cars a week at its factory in fremont, california.
Ashlee vance was given an exclusive tour to see how the company can afford to operate a car factory in silicon valley.
We are getting the supersecret tour.
Last time, it was in the early days.
People were busy then, but i notice the difference this time around.
How big is this factory?
We are at a volume that does not need to use everything.
We can stay here and tell you.
We have had car companies in silicon valley in the past, but they have said it is too expensive to build cars.
The price is a little bit higher than other cars right now, but we are convinced by integrating a lot of the manufacturing here, we save a lot of money with logistics.
Did we get a car?
We have about 140 robots.
You can see inside of the car.
These guys are never tired.
Even for us, it is pretty cool.
? be sure to check out the latest edition of bloomberg businessweek with our featured story on tesla.
It hits newsstands and your tablet today.
Still ahead, a device that was envisioned over five centuries ago is finally becoming a reality.
Find out what some bird enthusiasts are up to in southern england.
Hot shots is next.
? that is your look at the futures markets.
Bloomberg brings you a markets check after each hour of the trading day.
Let's get you the bottom line of what is happening on friday.
Olivia and su keenan have the previews.
We have a lot of earnings and a lot of big names tomorrow.
One of the biggest is general electric.
Given its industrial diversity, it could set the tone for friday trading.
We also have baker hughes joining the earnings parade.
Also reporting, hunting while.
I had of that report, financial firms suntrust and state street also traded at a five-year high.
Bloomberg data show 75% of companies have beaten the street.
Let's start with that did meeting in moscow.
The group of 20 central-bank governors and finance ministers start their two-day meeting tomorrow.
Japan's anti- deflation policy, they will also discuss the effects of global stimulus programs and tax evasion.
I will have a special report focusing on the incredible bull run we have seen in biotech stocks.
They are generating some of the best risk-adjusted returns.
I will tell you about some of the most promising in the pipeline.
We are about to see a frenzy of dealmaking in the sector.
It is time for hotshots, a look at some of the most compelling images of the day.
? man's fascination with flight knows no bounds at a waterfront in southern england.
Da vinci wannabes flocked to the international bird man event.
This text has been automatically generated. It may not be 100% accurate.