>> welcome to "lunch money" where we tie together the best business stories. intech, twitter tumbles. user growth slides and photos the stock. the ceo of script says it is simple, the online tv service is stealing. walk this way. how chief executives take care of business on the go. bridget moynahan living on $1.25 per day. she will explain why. in mobile, which makes the best wine? our answers coming up. that is the drink segment.

we all suspected and now we know for sure. >> the central findings of the investigation are that the man whose voice is heard on the recording and a second recording from the same conversation that was released sunday is mr. sterling. and that the hateful opinions voiced by that man are those of mr. sterling. >> the nba new commissioner, adams folder, addressing reporters yesterday on recorded comments from the owner of the clippers. he told the commissioner it was he who told his girlfriend not to bring black people to games. his girlfriend posted a photograph of herself and magic

johnson. his remarks instantly sparked condemnation and calls for him to sell the team. now the commissioner has spoken. here it is in the wrong. >> effective immediately, i am banning mr. sterling for life for any association with the clippers organization or the nba. mr. sterling may not attend any nba games or practices. he may not be present at any clippers facility, and he may not participate in any business or player personnel decisions involving the team. he will also be barred from attending nba board of governors meeting or participating in any other league activities. i am also finding mr. sterling $2.5 million, the maximum amount allowed under the nba constitution. these funds will be donated to organizations dedicated to

anti-discrimination and tolerance of france that will be jointly selected i the nba and the players association. as for mr. sterling's ownership interest in the clippers, i will urge the board of governors to exercise its authority to force a sale of the team and will do everything in my power to ensure that that happens. >> the big question him as commissioner actually have the authority force that to happen? >> we have the authority to act as i recommended. i fully support -- but we expect the support i need to remove him. >> three quarters have to vote him out. the majority of the nba ownership groups contacted say they will vote to force sterling to sell. 16 owner group said yes. eight declined to reveal the stance. bottom line, they think this will happen.

>> there is language that allows to do something like this. whether or not there is dialog that says you can be thrown out as an owner because you are a racist, i am not sure that is there but that will be addressed. they believe they can do that through internal and external councils. i think they are on firm footing, and we will see where it goes. >> potential buyers are stepping up. magic thompson, larry ellison. they are potentially sowing their hats in the ring. if they hit the auction block, it could go anywhere from 600 million dollars to $1 billion. >> the value based on three things. one is whether or not the team is in a big market. they are splitting it with the lakers. >> the second biggest media market in the country. >> absolutely. the other thing is whether the team owns the arena. in this case, the clippers do

not but the lakers do. one positive thing going into the clippers direction is the fact that other recent trades have been astronomically high. looking at the valuations around the sacramento kings, the highest valuation for the nba team that sold for $335 million then. just a couple of months ago the bucks sold for $550 million of that was ranked the lowest in terms of franchise value. looking at the clippers, there is a lot of opportunity. common knowledge an underinvestment. one to pour more money, there may be an opportunity. we do not know the status of the television rights. we do not know if they are up for a valuations. if they are, that could be an enormous value. >> tv rights to make a big difference. >> fox owns the television

rights in a very competitive market. i think that is up for negotiation in two years. magic johnson and guggenheim on the dodgers network, struggling for distribution. should they on the clippers and take media rights, it enhances their position and hurts fox. that is another sidebar that will occur at some point if they are the winners of the franchise. >> that is the owner side of the story. as for the players on the they had to focus on what they have to do, and that is when. they beat the golden state warriors last may in an emotionally charged playoff game. >> you think it was just the players but it was the fans, too. everyone was going through this. almost like everyone wanted to

excel tonight and it was good. >> it has been tough, but luckily the mayor kevin johnson has been amazing to this entire thing and being a leader and out front. given me the opportunity to go out and play. it is amazing big unity our league has shown through this tough time. it is a great day. >> honestly, i have faith the commissioner and nba would take action. i honestly did not think it was going to be as big as it was, but i think it definitely made sense and was the right thing. >> a dozen or so sponsors uphold the port from the team following the comments, they have come back based on the nba unprecedented decision to ban sterling for life. adidas and samsung are the companies. talking tech next. ceo dick costolo on disappointment. ♪

>> today in tech, twitters tumble. more than 140 characters to explain this one. well they did post fourth-quarter results that the estimates for sales and profits, the fact is, shares plunged because news customers are not signing up as fast. bloomberg west anchor emily chang spoke with the ceo about the disconnect between twitter's and wall street expectations. >> and we talked the day of the ipo i told you i'm a we have a lot of work to do. we know what we need to do to take the mainstream understanding of twitter as part of the culture of the world and helping the people understand the additional value of the additional benefit of it. we have a lot of work to do we

started on and love the early progress starting to show great results in q1 but needs to continue the rest of the year on building on the things we have done to make it ever easier to use in bridge the gap of awareness and engagement on twitter. >> the results are strong. why are they focusing on this one number? >> i think it is incumbent upon me as a ceo to understand the broader platform. we have a platform with billions of views about an event in just 48 hours when you look at other mainstream platforms, youtube as an example, where the bigger content networks get billions of views over the course of a month. and you look at the ad exchange, if you come to the ad exchange, we can get your advertisement in front of over a billion ios and

android users today. thousands of mobile applications. more than likely they will get a twitter app. it is incumbent upon us to see how big the plot arm is in so much bigger. >> twitter has been described as the global town square. call the indispensable companion to life at the moment. >> the thing i really like about the companion experience to what is happening in your world, if crisply articulates what they should and should not be doing in service to the vision of the product and users. while i love the metaphor of the global town square and the visuals it creates for people in the metaphor, i do not think it is as good as informing the product and design team what

they should build for the users. i think the companion experience to what is happening in your world is a more crisp definition of that. >> bottom line, twitter is everywhere. >> a lot of people think of twitter as the product or the website, but the reality is, twitter is in front of people around the world every day and constantly all over tv. i watched adam silver announce it yesterday. there were tweets on air for his press conference the whole time. and a couple of days over 3 billion views of tweets just about the oscars. in print, on-air and on the web and mobile, it is already embedded into the fabric of the culture of not just the united states but the world. in that sense, i very much think of it as a mainstream platform and a durable and lasting

platform upon which we can build a great business. >> then there is talk about a possible tech bubble and high valuations. >> market environment is always in my periphery. and yet, we have a very specific way up inking about the long-term plan for the company. it is about balancing investments in growth and operating leverage and efficiency. making sure we are improving margins and an ever increasing drive toward profitability and improving margins, balanced against reinvesting it. that combination of growth operating efficiency and leverage is the way i think about how we will build the business and company, while always think attention to the market landscape. >> what big bets is he making on the future of twitter? >> we are extremely focused on strengthening the core product. most of the acquisitions we have made to date are about strengthening the core.

most of the work in the product is strengthening the core and will continue to be the focus in the near-term. >> coming up, the ceo of cox communications staying competitive in an increasingly consolidating industry. why celebrities and wall street titans alike are getting into this business. ♪

>> this is "lunch money" on bloomberg television. streaming live on virtually every device imaginable. i am adam johnson. focused on the evolving television business. no matter who wins in the supreme court him at the stakes are very high for companies like

e.w. scripps. the company ceo explains why it is so important for him this morning. >> we see this as simple theft. i am from kentucky. no different from someone stealing my porch swing and selling it at a flea market. i think it is everybody across the country who delivers over the air television who invest millions and millions of dollars each and every day to great local content. great public service. >> i have not heard you mention retransmission fees. that is the crux of everything. the thing is they are relatively new. they only began hitting paid out about $10 i believe. how dependent are you on these retransmission fees? >> it is a second revenue

stream. you are still getting paid for carriage. still viewership. and that of people pulling off the antenna come if they are taking it from time warner or someone else. that is about you exchange that works. >> only popped up 10 years ago and was not necessary until then. >> it is difficult for that. the four that there was trading of content and services we did. we started to convert some of it to cash. >> you said something interesting that caught my attention. you said we have been doing this for years and has worked well. what is what has worked does not necessarily work? >> we are as much a part of that change as anyone else. primarily nbc and abc. we work with cable operators. we create additional services

for mobile and over the air. not like we have been sitting and not doing anything for years. >> one of the most successful programmers in all of cable with hits like that dynasty. they spoke of the cable show in a lake, the biggest get-together in the industry. backs it is not a foregone conclusion that one show ages and you find another one. they are not that easy. there is an apple orchard we all go to. a very complicated business that needs to be diversified to be successful long-term. diversifying the kind of content we do. we are diversifying the brand in terms of how we manage the channels and what audience each channel is leaking to. we are diversified for how we deliver the content. goes through internationally and e-commerce business and traditional partnership business. >> "duck dynasty" by far the biggest show on a&e. >> yes. we have one of the most rheumatic changes in all of

history going from a barely top 10 network to number three network. each rise has been nothing like anyone has ever seen. we are used to the law of numbers. we are never overly reliant on one show. as the rocketship was taking off, we were not cheering in the hallways as much as we were saying to ourselves, do not be dependent on this one show. this is when you have to have the development throttle. >> cox communications is the third largest cable provider. the ceo says growth tends on relentless innovation. >> a direct result of content we launched three years ago. more student -- to niche, storage. personalized streamings and

recommendations to customers. we launched that last august. we have been increasing speed to every year. our customers respond very favorably and have a very powerful market share because of that. business services we will talk about in a moment. it is about $1.6 billion. we continue to see that business growth. $2 billion for us very quickly. it has been important to us because it leverages the existing network. it leverages the powerful brand. it puts us in a position to

serve segments that respond very well to it. >> why do you think it has been ignored? >> because it is such a residential minded industry. i will tell you why you should care. it is about $6.6 billion we compete for on a daily basis. that is just for cox. run that against the industry. a tremendous opportunity. almost $7 million. i believe the industry as a whole will capture a third of that. >> meanwhile hulu keeping it real teaming up with pizza hut. soon you will be able to order pizza on a pop-up window. after that binge session, you better go take a hike. that is what ceos are doing to take care of their businesses. sean penn looking for investors to give haiti a boost. hear why he is so passionate. ♪

>> this is "lunch money" on bloomberg television. we are fully digital. everywhere you are. i am adam johnson. today's moving picture. cleanup has begun after three days of deadly tornadoes in the u.s.. from the midwest to the deep south tour through homes and businesses leaving at least 35 people dead. among the hardest hit states were arkansas and mississippi which accounted for most of the death toll. the boat in the first parliamentary election since

u.s. troops pulled out. more than 9000 are running for 328 seats in parliament. iraq has seen a surge in violence in the weeks leading up to the vote. the world's largest, flawless vivid blue diamonds going on display in london. only five vivid blue diamonds weighing over 10 carats have made it to auction. this weighs in at just over 13 caret. christie's auction is scheduled to be held in geneva on may 14 where the ring could be yours for $25 million. good luck. today chief executives are thinking on their feet. facebook ceo mark zuckerberg often brings people he wants to hire on walks near the company headquarters. they close the deal to buy whatsapp in february after walking with that company founder. even the chief executive of the united states, president obama, often ends his working day with the chief of staff and the walk

around the white house. the chief of honesty, we caught up with him at the company headquarters in bethesda, maryland. >> if you have a meeting with someone in an office, you are entering the room and entering the room with all the things that have been happening that day, all of the dynamics that they bring to an office setting. when you go outside, you change it up. people on the walk are participating. they are not checking their e-mail order thing off. there is a great bike path from our office that goes to georgetown. no cars. you do not have to worry about traffic or any other

disruptions. some of the more difficult conversations i have had have happened on walks. you are not always looking directly at each other and that may be helpful. some of the toughest issues we are grappling with, we may take one last walk to walk it through -- talk it through. it also brings a different energy to the conversation. >> if you have ever been to pepsico public office, that is a great place to walk. going inside pepsico. we find out how they get chicken and waffle flavor into their chips and how stark athletes helped to formulate gatorade. starts with the exclusive ceo tomorrow at 8:00 eastern right here on bloomberg television. >> coming up, why bridget moynihan is living on $1.50 per day. we sip wine made by movie stars and wall street titans. we want to figure out if they stack up to the real stuff. ♪

>> this is "lunch money" on bloomberg television. online, your phone and tablet. i am adam johnson. celebrities taking a stand. starting with bridget moynihan. she is teaming up with global orphan project and living on $1.50 per day. all about raising awareness. the project ceo explains. we knew we would never really

understand it until we try to have a full small taste of it and experience it ourselves through the lived the low the line challenge. one of my friends challenged himself to do what for a month. he found it incredibly challenging. all of a sudden people started doing it all over the world. three years later, there will be 25,000 people around the world today and the next five days living one dollar 50 cents per day for food and drink to raise money to support some of the best anti-poverty initiatives at this website. >> how did you become involved in this? >> i met these guys at the u.n. they came up to me after i did my speech.

i enjoyed what they had to say. they take something like this and did not just throw money at it but ask people to participate. you are forced putting your mind and body into a situation that is different than your everyday. making different choices and thinking about things differently. rex you have started this week. one dollar 50 cents a day. what are some of the restrictions? you have to live on that amount of money. >> i cannot eat anything that is in your nice studio here. no bottled water. i have a team and we pooled the money and we bought in bulk. we made a very strict diet to keep it healthy and will stick with that for the rest of the week. >> what is the menu for you this week?

>> i am feeling very hungry right now. i was upstairs also in the studio. i started the morning with a banana and a tiny bit of orange and that is all a get to eat today because that is all i could afford for $1.50. my diet is probably not as nutritious. the truth is i will never really know what it is like so i have a comparatively good and do not take anything for granted. >> another actor with a mission, sean penn. raising money trying to help haiti rebuild following the 2000 ton earthquake. he explains why he is doing this to stephanie ruhle at the milken conference with dennis o'brien. >> emergency release, our first mission before we got into sustainable programs into one. it became clear the sustainment,

which was also doing the lion share of international work was the biggest investment there. it became very clear to us in emergency preparedness organization that the future would be where the problem is for all developing countries and jobs. >> what does it look like now yeah go >> ngo's will not change the country. i think long-term economically haiti has a pretty good future. the whole issue around job creation is still a challenge. they are now attracting inward investment and manufacturers into haiti that will create employment. all about taking people and give them a lot. that is how you move people from

being poor to a much more sustainable level. then you need education happening in parallel. if you read " the new york times" you would say it is never going to happen but there are a lot of good things happening at the moment. >> why haiti? >> i will answer the question by following up on what dennis just said. 10 cubic meters of rubble. essentially all of the rubble. this is done because of the spirit of the haitian people. you have the fastest-growing developing economy in haiti. in many ways, haiti is bad itself. i think what we are hoping is that like what we see in terms of the value of mud investment is that others will get on board the aircraft. it is developing itself at a very quick rate.

>> at the end of last year, relocating that end of the families living in replacement can switch at its peak was 60,000. still to come, a list alcohol. celebrities and ceos alike aching their own wines. how the top bottles stacked up in a taste test. we will take you behind closed doors of the secret liquid laboratory. before we had to break, the space shuttle carrier arrived at its final destination this morning at the houston space center. it will join a replica as an international landmark beginning next year. ♪

>> this is "lunch money" on bloomberg television. i am adam johnson. we are wrapping up today with a little toes today. a lot of people getting into the wine business. knowing -- no one exactly making two buck chuck. we put them to the test. >> we have a lot of wind behind us and we will try to drink at all tonight. this is a 2010 vintage. one of the great ones at napa

valley. the smell. black raspberry, black current. this is rich, powerful and a wine i could put away for the next 20 years. the highest rated wine. medium and style. good acidity. without acidity, it will never age. i could smell it all day and not even drink it. one of the great things is the label. this wine is a blend. merlot and a little bit of hibernate. they have done a great job in blending the different grapes to make a whole wine.

that is what i am looking for. it is made all over the world. countries like croatia, growing grapes and making wine. this is a unique wine, spicy wine and ready to drink wine. angelina jolie, brad pitt and wine. it is true. i think that is something people should know about celebrity wine. you better make sure it is that quality. this wine is refreshing and for the best part inexpensive. the biggest question i get asked is which one do i like better? put me on the spot and will go with the director. i like his wine. i like his movies. cheers. >> like our children, we love them equally. the world's largest distiller

thanks to brand like smirnov, now it wants to expand the rum business. paying a little visit to the innovation lab where the new round gets its start. in this high-tech lab a team of experts is tasting a lot of foods. >> we are mixologists scientists. >> they work for the largest spirits maker and searching for the next hit alcohol flavor. >> what have you been working on recently? any one time we can work on 50 different ideas in this one lab. >> our consumers are constantly interested in new ideas. in order to grab a consumer's attention, you need to put something out there that does

not look like everything else out there. >> the latest idea, captain morgan 1671, a premium rum finished in spanish oak. a 6-9 month process from start to for wishon. it usually starts with market research. like a lot of the marketing team will spend a lot of time bars figuring out the trend. we are seeing a movement into more slavery notes. >> next, it is up to the team of liquid developers to come up with liquid alcohol laced into the trends, starting with base >> i like applewood smoked. chocolate, vanilla. cheers. with the gold standard recipe in place, the product goes into mass production.

>> at the end the consumer is what decides if it will be successful or not. >> time for mystery meat. hundreds of waiters carrying trays of drinks. how appropriate. a cash prize. an annual tradition. ♪

past the hour.56 we are "on the markets." take a look out how they closed. the dow closing at a record 16,580. the s&p higher by about one third of 1%.

the fed holding steady in its statement, nonetheless a little more optimistic about the economy and that seemed to not take any of the air out of the markets today. after a bit of a leg up the statement. tony dwyer at can record genuity genuity said we are in a no man's land but no matter what, he says the, you should be buying. >> you make a low where you want to be an aggressive buyer even when it feels wrong when the the marketlower in is much more oversold. we have the russell 2000 and some of these highflying social media stocks that have been crunched. it's not enough. >> whether it is to buy or aggressive buy. targetre up 17% and the

is 2185. >> not everyone agrees that you should be buying stocks the matter what. another camp says it's time to stay out of the stock market. adam johnson takes a look at and in today's insight action. >> sell in may and go away. you've heard of the phrase and now we are looking at the evidence. we went back over the past five years to try and find an average for the s&p 500. if, in fact, you sell on may 1 in via back some temper first ahead of the game. this adage comes out of the stock trader's almanac. typically you have flat markets and get gains in the fourth quarter. that has been accelerated. sell in may and go away.

a slightlyne has different take about this summer vacation. he says there are winners and losers. this goes back to 1989. he found that health care on the average in the summer months up 3.2%. the best-performing group as opposed to materials down three percent. so he says you do not necessarily need to sell everything, you just need to consolidate and focus on the winners. help care and discretionary stocks are the winners since 1989. if you want to stay with the one, health care your best performer. it is the health care reit etf. the trend line there a consistent. even on the trend we saw last month. there you go. >> let's also take a look out

the bond market today as a result of the fomc. fedng treasuries and the reiterating that it's likely to keep the benchmark interest rate close to zero for a considerable time even after they and the bond purchase program. 2.65% one day around the 10-year note trading in a pretty tight range as it has for the last several months. for "on the markets," julie hyman. ♪