From bloomberg world headquarters in new york, i am mark crumpton and this is bottom line.
Tonight, the jury finds former goldman trader liable in a case.
Then, motorola rolls new smartphone will help change strategy.
We will see how mobile goons will help with the economy.
To our viewers in the united states and those joining us from around the world, welcome.
We have full coverage of the stocks and stories making headlines.
Megan hughes has developments of the apple and samsung patent battle.
Let's begin with su keenan.
It didn't -- a big victory and a stunning loss for the executive found liable for six of the seven claims that he misled on a billion-dollar deal.
The bad news came this morning . shortly after three clock p.m., they found him liable for wrong doing and he appeared in disbelief, surrounded by cameras, without saying a word.
He had been very cordial and talkative.
The team was paid for by goldman sachs.
He never called a witness and many would say that was a strong signal.
The s&p called 11 witnesses failed to make its case that tour of misled ambassadors by not disclosing that billionaire john paulson was betting this deal would fail.
We are gratis foot gash gratified by the verdict.
We their hard work.
I have no comment other than that.
They are pleased and they believe he prevailed for a reason.
This was the first major trial alleging fraud since the collapse of the mortgage market.
What does this mean for goldman?
This man hoped to restore his career and reputation.
In the next few weeks, legal briefs will be escaped -- exchanged.
He faces a lifetime spanned from the securities industry and it could really range depending on what the briefs say.
Goldman released a statement saying, as a firm, we remain focused on being more accountable and transparent what does and more responsible to the needs of our clients.
Goldman in 2010 paid a $550 million fine and conceited they were not forthcoming and they acknowledged their statements were not incomplete in terms of information.
He did admit one of -- one of his e-mails were not accurate.
Several other claims -- it is not clear whether the defense will try to appeal.
For more on the verdict, william cohen joins me on the phone from it -- nantucket.
Good to have you back on again.
Chalk one up for the government.
Does today's verdict mean that the tide is changing?
this is a complete one off.
It is really the only case that has been brought against an individual i am aware of of any substance related to the financial crisis.
It will not set a precedent that way.
There are no other cases in the pipeline.
This is a travesty of justice.
To be liable for this and for george zimmerman to walk three, i am really wondering what is going on with our justice system these days.
You made clear they should have gone after executives.
Was there no one above him in the hierarchy that the government could have gone after?
Of course there were.
Wall street is like the army.
There is a chain of command.
He was a foot soldier in the army and was doing what he told.
He said, nobody ever told him what he was doing was incorrect.
The problem he had was he was a little fast and loose with his e-mails and he left a beautiful paper will -- paper trail.
His bosses were much more clever than that.
If there was wrongdoing , which i do not believe there was, but if there was, his bosses were clever enough not to put anything in e-mail.
He made all sorts of complaints about the product in his love life and all of these things and it made two good of a paper trail.
They should have gone after executivesbut a jury just does not understand this kind of sophisticated product.
I find it outrageous.
You mentioned you drew a parallel between this and what happened in the zimmerman and trayvon martin trial.
Is i was just doing my job a sufficient defense?
First of all, just about every major firm on wall street was creating this.
This was not a one off and it was not just something that goldman did.
Everybody knew what was at stake with these securities and everyone knew one side had to bet the mortgages would fail and the other side bet that they would not.
There is a very good and interesting column that came out where it says it is like gambling.
Goldman is the bookie.
That is true but it does not mean it is illegal or if he did anything wrong.
He was just doing what he was supposed to do.
He is the vice president of goldman sachs and nothing more.
What would this mean against the bank over losses in light of the fact you have a jury that found an underling liable in this investment?
There could have an effect there.
It is a fair point and not a good fact for goldman as it tries to defend lawsuits.
Lawsuits are still pending and it is not a good fact.
I think it is a mistake the jury made here.
This verdict makes no sense.
Joining us on the phone from nantucket, bill, always good to have you on.
Shifting gears, a key decision in the patent wars between apple and samsung has been delayed.
They need more time to decide the case and apple claims samsung infringed on smartphone patents.
Megan hughes is in washington with more.
We are now waiting until next friday, the international trade commission announcing they need more time so that is when they will make this decision.
What is at stake is this is apple's next big chance at putting a dent in sales.
Apple has been saying this for more than two years that samsung copied its products.
What would a loss mean?
That is what is not clear.
The company has ways to design around the apple patent but said a broadly worded commission here could cause a shortage of smart phones.
On the one hand, samsung is saying it is not a big deal on the other hand issuing a huge warning on the market.
The two companies make up almost half of the smartphones sold in the world.
That market is just shy of $94 billion last year.
This is not the only decision we are waiting for.
What else can you tell us?
This is a critical time.
A lot of decisions could change how they shake out.
In addition to the international trade commission's decision, now pushed to next friday, midnight on sunday is the next deadline for a presidential review on apple iphone 4s. if they do not overturn the import ban, some versions of the iphone 4 and ipad2, apple will not be able to sell or him or those products and that is starting next week.
That is a big deal.
Also next friday, apple is looking to a u.s. appeals court to let samsung cell products that a jury said infringed on patents.
In that one, apple would again be playing offense.
Experts believe if one or the other company takes a big hit, it could culminate in a recession.
Companies are under a lot of pressure here.
We will continue to follow the development.
Googles motorola unit announced a smartphone with customizable colors.
It is in an effort to revive the business after falling behind apple and samsung.
The screen device is aimed at market leaders like iphone.
It features all day battery life, the choice of colors and materials, and it instant smart camera.
It will be available on all the major u.s. carriers by the end of august or early september.
The device is the first homegrown smartphone from motorola.
Coming up, u.s. lawmakers are pushing the pedal to the metal when it comes to sales.
We will look at impressive numbers when we return in just a moment.
? welcome back.
Let us show you how the equity markets finished the session.
Stocks rallied, sending the s&p 500 above 1700 for the first time.
Shares moved higher after central banks promised to maintain stimulus.
They also responded to data on global manufacturing that beat forecasts.
The s&p 500 index was up one and one points.
The dow jones industrial average was up 128 points, another record at 15,628. the nasdaq composite index was up 49 points, or 1.3%. general motors took the lead.
U.s. car companies reported impressive sales in july.
The senior analyst of edmunds .com joins us now from california.
Always a pleasure to have you on.
Thanks for having me back.
U.s. auto sales are nearing levels not seen since before the elections in 2007. did today's numbers for july surprise you at all?
We saw them start off fairly strong.
A lot of commotion around the fourth of july.
We just came off of june, and that was at a level we have not seen since 2007. this month, we saw some coming in.
There were so many new models out there.
Interest rates are pretty go -- pretty low.
People want to buy a new car.
How much our interest rates and rebates responsible for sales?
It is a big portion.
Right before now, i looked at the average interest rate paid by people who finance their car in the month of july and it was 4.02. that is low considering in 2007, it would not be unusual to see two percent.
General motors deliveries were up extreme percent last month.
All four brands saw gains.
What is gm doing that the others are not at this point?
They have had a stroke of good luck.
Looking at the timing of this, it is perfect.
There is a lot of pent up demand.
We are just seeing the beginning of the demand.
The fact that they have this truck out, coupled with a truck they can easily sell down, so you can put them at a discount, it is just a stroke of good luck for general motors right now.
It is a hot market.
Sales of trucks were off the charts.
How does this translate?
Looking at what housing now.
It is a hot market.
Sales are right now, truck sales, they go hand-in-hand.
If you look at the areas in which there is a lot of activity in texas and north dakota, there are so many truck sales.
That is what people want, a nicer version for their personal use.
Sales of trucks are going up here it twice close lagan was the only automaker to report losses last month.
Both had high hopes.
It is a tough market.
You have all the volkswagen, they do not have quite the market share some of the other detroit automakers have or even some of the japanese automakers.
You have a new honda civic with good reviews.
A new focus.
A tough competitive environment.
Class we have less than a minute left.
Today's good news is in stark contrast to the fiscal health.
The motor city is the make and because of the auto industry.
Can they help at this point?
A lot of automakers -- general motors are having a good mode -- good month and that helps it out.
Any good news coming from the auto industry will give detroit the push it needs.
Their issues go much deeper than the auto industry.
Joining us from santa monica, always a pleasure to have you on.
Thank you for your time tonight.
Coming up, local food might be one of the key ingredients to an economic recovery and a try.
We will be joined from the mobile city -- motor city.
? detroit filed the nation's biggest bankruptcy and there is no sign of help from washington.
Allen is alive in our detroit bureau with more analysis.
Why detroit is we gekko -- detroit this week gekko we are looking for answers.
What a lot of people in detroit are interested in this day, how agriculture in this case in an urban context can help economic growth for the community.
Of element for food in detroit, how big of a development is this in the city 's plans recovery?
It is striking.
When you take a look at the planning taking place in the city, you see roe problems not really given in a lot of cities, though you are starting to see it in some places , more interest in locally grown fruits and vegetables.
Also, a way to use some of the vacant land all over the city.
You are seeing people putting up the land.
Our city council put up an ordinance last march.
A lot of activity in this area from an urban planning stem fruits and vegetables -- standpoint and they think they can do something exciting here.
There are conflicts entrepreneurs are facing along the way.
What are they?
It was interestingly described to me in the afternoon by a city official talking about how you use food as a way to build a community, but also, a look at the economic benefit.
There is one effort right now to bulldoze a lot of vacant lots and use tree farms.
Others think we should use them to grow potential goods for smaller farmers.
People are trying to figure this out as they go along.
Has never been tried on this scale.
How realistic is it?
I do not think anyone is saying this is the magic all it, but the point there is none for detroit right now.
General motors is here , a good month for autos, but autozone long will not drive the bus the and neither will food alone.
You have a new frontier and a situation where everything is on the table.
Where else are you going?
Tomorrow, there is a wholesale market that works in the same area in detroit and i will be there at 5 a.m.. 5:00 in the morning?
Farmers get up early.
Allen covers agriculture this week, trying to find answers . thank you for your time tonight.
I appreciate it.
Coming up, details -- we continue in just a moment.
? welcome back to the second half-hour.
Thank you for staying with us.
Let's check where the markets hit the session on this first day of august 2013 on thursday.
Stocks roaring back to record highs based on good news in the economy.
The s&p 500 finished at a record them and you know six.
The dow jones industrial average also hitting a writer -- a record and the dow up 28 points.
The nasdaq composite index hitting its highest level since september 2000 leading off, found liable by a jury in manhattan for his role in a failed $1 million investment tied to the housing collapse.
The verdict is a victory for the government in one of the most high profile trials to come out of this.
Activist investor carl icon is going to court over the dell buyout.
He is suing both dell and the board to prevent them from changing the rules on which shareholders -- the vote is scheduled for friday.
It has been postponed already twice.
President obama will announce john as the next -- he served in the clinton administration.
Should he be confirmed, he will take over an agency rock by allegations of giving extra scrutiny to out -- -- two groups.
Let's look at the top stories in asia.
A lottery website in china is to be planning a u.s. ipo.
I am joined from hong kong with the details.
To put this into perspective, playing the lottery is huge in china, with almost half the number of individuals in that country participating in some way, shape, or form.
It is a lottery website with more than 15 million users there it is propelling -- preparing to make a big public review and choosing not to do that in asia or china but to do it in the united states.
The company is seeking at least 150 mine dollars.
It will be a challenge, as many u.s. investors have been turned off by these chinese companies.
There have been allegations they have nebulous accounting standards and the low reputation, it will be challenging for the company to make it debut.
If is able to gain investor interest, this show will go forward.
But another story we have been following is sony's reaction.
What is the latest on that story?
We have been covering that story very closely.
We understand sony's board is seriously considering a proposal.
We understood earlier it was not as serious.
Things have changed very the proposal highlights the fact that you sell part of the entertainment business.
Investors have asked for more information about the unit making films, ev shows, and music.
Sony is really getting input to move forward.
That is the latest event there.
To put this in perspective, he controlled 6.9% of sony stocks and he wants sony to sell 20% of its entertainment aspects in the ipo.
They want to put -- improve the company's performance but for them to compete with samsung -- thank you.
Still ahead, the next generation of presidential helicopters.
Nothing is easy when it comes to buying military hardware.
Why the decision has taken years.
? -- improve the company's performance but for them to compete with samsung -- thank you.
Still ahead, the next generation of presidential helicopters.
Nothing is easy when it comes to buying military hardware.
Why the decision has taken years.
? -- improve the company's performance but for them to compete class tonight, edward snowden has temporary asylum.
He was granted asylum for a year.
There is no word on where he went.
Jay carney hinted that a planned summit with russian president vladimir putin might take place -- might not play -- might not take lace.
We are disappointed the russian government takes this step despite our requests in public and private to have snowden dispelled to the united states to face charges against him.
He is not a whistleblower.
Snowden thanks russia for giving him asylum and criticized the obama it administration as showing no respect for the law.
Today, lawmakers have their first look at a pentagon strategic review that outlines high-stakes actions to come.
Yang yang is in washington with more on this story.
Ever since these cuts began, the big question is how the pentagon will respond.
We may now have an answer.
Today, ashton carter and the vice chairman of the joint chiefs of brief the house armed services committee on the pentagon's conclusions on strategic choices and management review.
The review considered the pentagon's future across three different budget scenarios.
Ranging $150 cuts to five hundred billion dollars if the sequester it stays in place, and in in between scenario of 250 billion, and these are in addition to the nearly 500 billion already under implementation.
What can they do?
They presented it as a choice between the military ranks or wrap and.
The army would shrink from 490 thousand soldiers to 380000 and it has not been that small since the 1950's. there would also be fewer navy aircraft carriers and aircraft -- air force bombers.
The military would have to impose a modernization holiday to choose a size and the weapon system would be less effective against more 10:00 to the -- more technologically advanced adversaries.
The pentagon made no final recommendations among the options, they did warn that if sequestration sticks, it would break some parts of the strategy no matter how met -- how the cuts were made.
One expense they will not be sparing, the president's next helicopter.
No one besides the incumbent ever emerged.
Y echo that is right.
Contract bidding wars are usually a thing of great excitement here.
We did not get that satisfaction here this time.
It is worth as much $6.7 billion to create -- replace the president's current.
Why the company has not publicly said why, some question the openness of it.
No one at the company jumped at the chance, leaving him on its own.
Here is a rendering of the proposed 1, a modified version of the helicopters around the world.
It is not the official winner just yet.
The navy still has to prove it, which could take more than a year.
Swiss aerialist , otherwise known as jet man, makes his debut this week at the air venture 2013 in wisconsin.
He is famous for strapping himself into a jet powered wing he designed himself, soaring in the air.
Take a look at some hit -- at his most mind blowing aerial stunts.
? , look at jet man.
Coming up, the job market.
We will get a preview at which sector is employed for growth.
We continue in just a moment.
? on friday, the u.s. labor department will release a report.
They expect the employment rate to drop to 7.5%. they are looking for 185 non--- jobs created.
I am joined in studio.
Thank you for coming on.
How are you able to create that many jobs?
We operate in different types of businesses.
The test practice has moderate growth.
We have had many good years and we think we will hire another 18,000 people this year.
The business is good.
1000 companies . we look forward to next year.
I have to ask you about the art of your career.
You have been there since jimmy carter was president, 1979. can you trace the arc of what jobs in this country have looked like?
How the manufacturing base have gone up and down?
We did manufacturing in the u.s. for many years and now you see a lot more mexico, especially.
Jobs are coming back in the u.s. and manufacturing is coming back here it is driven in part by what we are seeing in oil and gas and other sectors.
I am optimistic tomorrow.
We will see an uptick in manufacturing.
The report that came out today was quite positive for manufacturing.
Are you expecting to see other companies emulate what you have been able to do this year?
If they can, they would.
Most companies want to grow.
There has been a lot of talk about what happens if interest rates go up.
Companies would gladly trade up moderate interest rate for a better economy, robust sales, and a robust revenue.
Many would love to be in the same position we are.
I would be remiss if i did not ask you about them of the president's comments this week.
One of the things he was putting out there was lowering the corporate interest tax rates.
That was during the 2000 when george w. bush was president of the criticism was a lot of the money that came back was used to pay dividends as opposed to jobs creation.
Is that a starting point?
We really believe there needs to be comprehensive tax reform and that would include corporate tax reform.
It deals with the rate and the base and how you deal with international.
It is, for us, not so much about simplicity.
It is about being able to compete more.
It is important we have corporate reform to allow us to hire people and compete international.
What have these companies been telling you in how they see the overall economy and how they might improve it?
We just got concluded with a survey in the second quarter.
The cfos are far more bullish than they were a year ago.
They have seen some employment reports that are coming out and a steady couple hundred thousand jobs a month.
We are hoping for a good employment report tomorrow.
You see stuff maybe other folks are not.
We get very involved with our clients.
They are more bullish.
The ceos with those company -- companies are more bullish.
They are more often -- opportunistic.
I hope we have a strong 2014. the july report is out tomorrow.
What are you expecting and how might the results impact what chairman bernanke does going forward in terms of tapering?
The conversation has been, maybe in september, they will pull it from 85 billion to 65. we are bullish about what will happen tomorrow.
We have seen reports of 180,000. we actually think it could be 200,000. it may change modestly.
We still have 11.8 million people not working and we still have 2 million people employed in january 2008 that are not working.
A way to go still.
We are fairly optimistic.
I do not think yet -- ben bernanke is ready to pull the plug on purchases.
But we get closer to doing it.
Which sectors stand to gain the most right now?
From a jobs perspective?
Professional business services will continue.
I think manufacturing and construction will improve, as well.
Joining us in studio, it is a pleasure for coming in.
Coming up, a look into the future.
We will take a look at "hotshot" and we will wind around to see what is coming up tomorrow.
Stay with us.
? that is a look at the futures markets.
Bloomberg brings you a market check after each hour of the trading day.
We have yang yang and su keenan with the preview.
Let's start with you, su keenan.
A goldman sachs trader who earned the nickname, fabulous fab.
The 2007 mortgage crisis that helped push the country into a recession.
We will have continuing coverage tomorrow.
For the third time, will it be a charm?
Running into a time crunch as they fight for every last vote.
Cristina alesci will report on each twist and return.
We continue the army sprayed with numbers from toyota, chevron, rbs, and viacom.
And many more.
What is up for tomorrow in washington?
Tomorrow marks job stake in washington.
Economiststhe 2007 mortgage crisis that helped push the country into a recession.
We will have continuing coverage tomorrow.
For the third surveyed by bloomberg predict a drop in the unemployment rate to 7.5% last month and u.s. employers added 185,000 jobs.
Lawmakers will soon get a break from theirs.
Tomorrow is their final day before summer recess.
Immigration reform, the farm bill, and raising the debt bill is -- are just some awaiting them.
It is time for "hotshot", a look at the most compelling images of the dated debt of the day.
Meet the counterpart to grow
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