>> live from bloomberg headquarters in new york, this is market makers with erik schatzker and stephanie ruhle. >> jpmorgan ceo will undergo treatment for throat cancer, which is raising questions about the bank's succession plans. >> wall street's version of , claims that goldman sachs is a man club, gore men's go -- where men been streaking and taking clients to strip clubs. >> looking for love in all the wrong places. the matchmaker who comes to the rescue when the richest people in the world just can't get a

date. >> how is that even possible? >> we are going to answer the question. makers" andmarket i'm erik schatzker. reunited. >> i am thrilled. i came back because i want to know how millionaire matchmaking works to my erik schatzker. thrilledhanie ruhle, to be back here with my partner eric. -- erik schatzker. let's get to the top business stories around the world. companies added more workers last month than expected, according to the adp payroll group. payroll grew by 200,000 monthly workers. the jobs report will come out officially tomorrow. and john legere is firing back -- afterc, claiming being accused of cramming. he just tweeted, i've made it

clear cramming is bad. customers pay only for what they want at t-mobile. and the storm could turn into a hurricane and threaten north carolina banks right before the holiday vacation season. arthur may reach hurricane strength i this thursday and is currently just off of coast of florida. of jpmorgan, stand -- jamie dimon, has throat cancer. to shareholders and -- any note of an illness compelled them to look at the board. that is where we begin. guest.ome our

charles, let's start with a disclosure issue. jamie dimon told shareholders and employees that he was just diagnosed with throat cancer and we have to make the assumption that "just" means very recently. any complaints with this? it looks like they are doing all the right things. he is anof all, individual who i admire and respect him endlessly and i'm very sorry to hear this news. --ond, i think you get it a did it exactly as he should've done it. as soon as it comes out, you make a disclosure. it is not something that -- it is hard to diagnose and figure out. as soon as you establish what it is and what your treatment is, you let your shareholders and employees know what is going on. that is the appropriate way to do it. this is not something that was drawn out for a long time. >> the sec actually gives quite a bit of latitude to companies. and jpmorgan came out early with this. what is your thought? stephanie.with you,

i certainly agree with charles, my longtime friend. this not know exactly when took place, but he came out promptly and i think they are dealing with it well so far. >> clearly, jpmorgan has learned a few lessons about how to communicate with shareholders, and the way in which it should communicate with shareholders in the past few years. charles, a good contrast to the conductn, jpmorgan's being the right conduct being stevey that apple handled jobs illness a few years ago, wouldn't you say? >> i knew that one was coming up. yes, it is very different. there are lessons learned from the apple story. at that point, the rumors were swirling and the stock was gyrating like a yo-yo.

i think it demonstrated how effective an important it is to get the news out early, let people digest it, and move on. outink this came effectively and appropriately. i agree with bill, my old high school classmate. >> hold on. you two went to high school together? >> it's true. >> that is amazing. >> another important point, shareholders need to move on. the question is, move on to what? message saidn his he's going to continue being the ceo, coming to work every day postop billeting this will curtail it some international travel he had planned. those travelbeing, plans are on hold. but there is always the possibility, heaven forbid, that treatments do not work, he gets bigger, and it impacts his ability to serve as the chief executive. >> or maybe he simply says, i'm going through cancer and i don't want to be ceo of jpmorgan right

now. >> that is a fair point. i think for the time being that is not how he feels or he would have said so. say either scenario comes into play, bill, we need to talk about succession. they have ave viable succession plan? to take him atve his word, the sportsman hersen -- the spokesman for jpmorgan said they have medium-term and long-term plans. dimon was being considered for treasury secretary, when he was barack obama's secret banker, they have basically just named billy as his successor. that conversation faded quickly. nobody talks about jamie dimon being treasury secretary anymore. there's that famous photo

that was on the cover of fortune magazine in september, 2008, showing all of jamie dimon's top lieutenants and only two of them are left. >> yes, and of course, mike cavanaugh, one of jamie dimon spit central -- potential successors just left in march to go to the carlyle group. we were talking in march about matt cain. devane, and mary urgo's, and gordon smith. .here are lots of people who knows who it will be? board andse, the every shareholder should hope that they are working on this, but do they need to be more close -- -- this

it? olsive about question then becomes what happened to jamie dimon? want him tod to -- recover and stay at the helm. what a thing they need to start a horse race or a speculative game at this point. i think shareholders understand that. it is a good board. ofcharles at the university delaware and bill cohen, our contributing editor by skype. it is intrigued -- extremely important to emphasize we always jamie dimon recovers from cancer. we would not wish that on anyone. >> but the next time those to come back, i'm going to need their yearbooks. moving on, huge story in france today. former president nicolas sarkozy charged with influence peddling and accepting illegal campaign

contributions. let's bring in bloomberg's caroline connan. she is in paris. how serious are these charges? they sound really bad. >> it is pretty serious. in fact, it's the first time ever that a former french president was being held in custody. you had other french presidents in the past who had legal problems, but they were never held in custody like nicolas sarkozy was. he was questioned for 15 hours last night, released around 1:00 a.m. before being officially charged. newspaper, hene actually risks up to five years in prison and a fine of 500,000 euros. allegedlysed of financing a judge, of getting confidential confirmation from this judge, and promises from that hege in exchange

would get a prestigious job as a government advisor in monaco. up to now, he has denied any judgeoing, but he and the have also been placed under investigation. monaco,stigious job in that would be hard to resist. we understand what it could mean for his future. what does it mean for french politics? blow for french politics. because at the moment, there is no clear conservative leader in france. sarkozy was -- sarkozy's former party has been damaged by political infighting. clearly, sarkozy was expecting to make a comeback, maybe in the next few months. and he remains the favorite who ran against president a lawn -- president hollande in the next election in 2017.

was doingling party some sort of witch hunting in this case, he has said. trying to prevent his come back into politics. >> a quick question before people jump to conclusions about what a charge of this nature means, it is a little different in france, as i understand it. it effectively means that an investigator can now conduct a formal probe of mr. sarkozy. is that right? >> that is exactly right. thatre never going to see in france. in fact, mr. sarkozy turn himself in last night for questioning. now he is a free man. he will be facing a formal .nvestigation and the judges facing a formal investigation. in fact, tonight he is appearing on national television to state his case. he will be speaking, defending

himself in about four hours from now. if this case goes to trial, then his chances of going back in time for the 2017 presidential elections seem pretty slim. >> thank you very much, caroline connan from paris. comeback, -- when we come back, trouble in paradise. >> and just what goldman sachs doesn't need, a lawsuit accusing it of being a boys club that disseminate against women. --s is "marker makers "market makers" right here on bloomberg television. you can see us on bloomberg.com /tv. ♪

>> welcome back to market makers

. i'm stephanie ruhle with my partner erik schatzker. cut not one, not two, but three notches by mover -- by moody's toterday, allowing some restructure debt outside bankruptcy. the fundamental advisor lawrence gottlieb says they are not currently long on puerto rico. lorenz, walk us through this. just one month ago i was in puerto rico. allyone was talking about of these hedge funds moving down there, the governor saying i'm here to win, not compete. there.is winning down >> what they are not talking about his tax code section 96, the changee 1990's, was made where you saw a flight of corporations and the economy shrank to a place where -- you are looking at an island with a that nearsulation

oklahoma or kansas. this was recruit -- reported by bloomberg this morning. >> one more time. >> if you measure it by population or gdp, puerto rico looks more like oklahoma or kansas. it by its measure borrowing, $70 billion worth of the only thing you could compare it to in the united states is new york or california. >> how are we even possibly looking at this as a turnaround story? >> it is an interesting choice of words. a few months ago, puerto rico was in the market telling us what they needed were short-term liquidity stock apps. just a few months later we are clearly talking about -- and i will roll out the hyperbole here -- insolvency. >> you are saying puerto rico is approaching insolvency? insolvency, as i understand it, is not being able to pay your debts as they come due.

if you look at the allen as a whole, the talk of restructuring is around an inability to pay one's debts as they come due. >> but the proximate cause of the concern was the law introduced last week, and subsequently passed, allowing corporations to restructure their debt, which would be tantamount to default, right? >> yes, that's right. let's peel that onion back a little bit. it stinks. talking about a commonwealth that freely associate with the united states. chapter 11 probably sets the standard for organization restructuring. the world economy looks to us for leadership and chapter 11 was developed for corporations and chapter nine was for public entities to set the standard. what is happened -- has happened?

flying in the face of all of that case law and precedent, we unravel or introduce a brand-new set of laws and legislation to, deal, reintroduce how to with a struggling entity. i think there will be constitutional challenges here. a lot to come in the future. >> i sat down with the governor just a month ago. i want to share a bit of that interview and get your thoughts. this is governor padilla. >> at the end of the day, the doomsday prophets like -- of rhetoric alike detroit or -- of puerto rico being like detroit or greece, they got it wrong. >> but if you do not restructure your debt, you could end up looking like argentina. >> that is good. now they are comparing us with argentina. they have stopped comparing us to detroit or greece. what do we need to do now?

what we did was buying time, as you said before. need tourism and so the economy continues to improve. >> here you go. improved tourism, get inside and outside investment. what will it take to get out of this whole? >> there must be regulation in governance. >> also truth telling. as in this the same governor who said we would honor our obligations -- isn't this the same governor who said we would honor our obligations? and suddenly he's saying, maybe we will not. maybe we will rewrite bankruptcy law. and of course, that is, if chapter 11 even applied to the commonwealth in the first place. >> and they are not paying their bills. >> the answer to all your questions is yes, yes, and more. minded approach to how to restructure the economy.

you cannot just introduce new laws. you cannot just till the very market you have been tapping and debt financing yourselves for decades. you cannot have it both ways. you cannot say, united states, we will address your tax exempt market and we need that, we will raid the piggy bank. >> who today would lend to puerto rico? wrong on this before. i was waiting for you to come back and say, puerto rico came into the market a few months ago and they were oversubscribed and it went 200 basis points tighter than we expected it would price at. >> it was still junk. >> it was still junk, but i don't know how to answer this question other than, you cannot keep saying the same thing again and again. >> then when you say they need to have a professionally minded approach, does the current puerto rican government have the chops to have a professionally minded approach? opportunity with john paulson does not correct a broken economy. >> difficult roads ahead.

these are decade-long overbuilt, overstaffed institutions that need to be right sized. this is tough work. one of the questions i'm anticipating from you is what about a bailout? what about this, what about bringing excellence, legal excellence and financial excellence to that market and looking at a way of fixing it? can it be fixed? excellent on the island. ands him, john paulson, buying hotels and trying to excite tourism. puerto rico is 60% tourism while its neighboring countries have 20%, 30%. >> meanwhile, the government is being sued by franklin templeton and oppenheimer challenging the new law. could it end up in the supreme court? >> it could. , you're looking at an

ugly fight ahead. don't think these creditors are of the mind to voluntarily subject themselves to a cram down akin to this chapter two, chapter three of the new recovering act. >> a lovely fight on a beautiful island. i want to thank you this morning. >> i would say an ugly fight. >> did i say beautiful? i meant to say ugly. it is a beautiful island, though. >> coming up, the business where no matter how hard work is, you only have a blast. corny to my right there. i'm glad eric said that and not me. ♪

>> coming up, a company never wants to see the following words in a lawsuit "strip club was

quote and "binge drinking." we will see how goldman sachs is handling it. for the topg game one percent. meet the woman trying to set them up. ♪

>> live from bloomberg headquarters in new york, this is "market makers," with erik schatzker and stephanie ruhle. >> welcome back. i'm erik schatzker. >> and i'm stephanie ruhle. moving on, i want to get into a story i want to talk about -- that you know i want to talk about, goldman sachs. a case of gender discrimination and a boy scout atmosphere in a lawsuit brought by two former female employees. -- and a voice club atmosphere in a lawsuit brought by two former female employees. the women are seeking to broaden the lawsuit. sheila, what are the charges

exactly and when did it take place? from 2002, some allegations even earlier, but basically sweeping charges against the whole kercher of the form -- the whole culture of the firm. are -- thesen women are charging that they were not promoting them, not transparent about the way someone becomes a managing director of the firm, so the women were not achieving a level and that basically, the whole culture was a module voice club. -- macho boys club. one woman described going on a conference trip with a colleague in louisiana and the can't -- the colleague insisted on taking the client to a strip club. she felt uncomfortable, but felt obligated to go to participate in a client bonding experience. aboutave been hearing this for a few years. >> indeed, it's been dragging

on. but the women first filed this case in 2010. they've spent the last four years in discovery. whereasically a time lawyers go back and forth and share documents. he finally amassed a bunch of evidence and they have testimonials from a group of former employees, those who bolster their arguments and say, i experienced this as well. this happened to me. here is my story. they are using that to make an argument to the judge that they should turn this case into -- >> into a class. >> in that case, they would rivers and all the women who have worked there since 2002. >> what did goldman say? >> they are denying the charges. they do not agree with what these women are saying. and procedurall step for any class action lawsuit and does not change the case of lack of merit. that is their official statement. they disagree.

>> could goldman come out against these women and say, this woman did not get promoted because she was not particularly did at her job, or this one not get promoted because she did x, y, and z. >> they are in an awkward position, no question. if the case goes to trial, that would be part of the defense. these when -- these women were not promoted for all of these reasons. a more talented person may be a man. that is what the firm would likely argue. >> is not the kind of fight goldman wants to have in the court of public opinion. >> and never looks good to have the words "strip club" mentioned alongside your company name. one thing that is interesting is there was a string of sex discrimination cases in the 1990's. room. famous boom boom

>> in those were even racier. it involved a topless dancers coming the trading floor. there was drinking and the wolves of wall street. are milder and it suggests, if they are true, that dissemination is still part -- discrimination is still part of the culture. >> you worked on wall street. you work for credit suisse, for georgia bank. >> i worked very closely with one of the plaintiffs in this case. >> is important to mention. yes, the street has been cleaned up some. but regardless of this particular case, does not mean it has been cleaned up enough. >> here is what is interesting. goldman is a pretty ball the firm and i'm sure the plaintiffs here say, goldman is putting a awkward position. under no look -- under no circumstances lloyd blankfein want the word strip club near his name and we will get paid. maybe they won't.

maybe goldman haven't done this, because guess what? how many people work at goldman? >> 30,000. >> can goldman actually say they can be held responsible for every -- i'm sure that between 2002-10, under no siegel -- no single circumstance did a company expense go to a strip club? they cannot say they can police every single thing the guys who work there do. >> they have done a few things that they can point to. they have a chief diversity officer. they have a woman's executive network. they have a lot of opportunities for women. however, i think they would ignore is that it is still not great. only 17% of managing directors. on the top cheese floor and they all ask where they went to high school and then guys go out and get promoted. i mean, come on. nothe diversity training is

taken that seriously there. this is a question that all wall street firms need to look at. >> in goldman sachs and -- in goldman's defense, his diversity training taken seriously on planet earth? >> i think that is a good point. >> i have eaten a lot of diversity wine and cheese in my life. i'm done. sheila, thank you so much. story atead the full businessweek.com. up, it gets a little cleaner. matchmaking for multimillionaires. we will talk to the one woman who helps the one percent find real love. ♪

>> you are watching "market makers" and i'm erik schatzker with stephanie ruhle. you know the old saying that you cannot buy love, but you can get someone to find it for you.

a dating service that caters exclusively to legionnaires. >> i want to ask -- to millionaires. >> i want to ask the first question. >> 71 to ask the first question. -- stephaniee wants to ask the first question. >> it is catering to millionaires, so only two men? -- is it only for men? >> it is for both. it is $20,000 to join. >> if i am a man or a woman, do i have to pay the $20,000? >> yes. >> i've spent the last 15 years and down township reality with women wearing $30,000 clothes and they have or six roommates.

>> we look at where they live, check out their identity. you can tell. >> who are your clients? presenters. from tv we have a nice a list in l.a.. .octors, lawyers, entrepreneurs >> why can't these people find the right match on their own? >> think about it. if you are too busy, divorce, kids every second weekend, a our job, which most of clients do. you're not going to go down to the pub and meet someone. you don't have time. what you do? you want to buy a condo, you going by a realtor. >> but aren't they meeting people at the spl lounge at peterborough? with social media, people don't go out as much. guys don't hit on girls like

that. people want to meet the right kind of person. what we do is take the stress out immediately. >> one important question -- the right person. why is wealth the most important qualifier? a rich guy or a rich woman, why does it have to be wealthy? serviceoney is for the that we provide. we are the go-between for you meeting her. you are paying the money for the service. the people that come to us are that kind of person. you come to me and you talk to me and i last to a kind of lady want to meet. >> can we talk about that? i spent two weeks ago in the south of france with rich, rich guys. and what they all seemed to like was really young, really tall, really skinny girls with long, long hair. where is the connection between

really rich 55-year-old guys and really hot 22-year-old girls? why is that a match? >> you cannot compare the south of france to anywhere else in the world. >> why? >> the older guy with the young what i mean, that is not they particularly liked, but it is a certain trend in a certain area. generally, we have a five-year rule, ish. and it's very loose. you could come to me and say i want to meet someone who is 35. >> how old am i? wouldn't like to know. -- wouldn't you like to know. >> in theory, he would want to date a guy that it -- date i would like to date a guy that is 22. >> no, that is a certain type of person. there is probably someone in a midlife crisis that wants to meet a younger woman, fair

enough. but we've got real people. >> how do you judge success? >> in marriage? no.ell, no for the month -- someone comes to you and says i want to meet somebody. you may be able to put those two people together for a date, but success is something beyond that. >> i judge success by the length of time they are together. anything over six months is a success. >> and what is your success rate? >> it spends on the age. between 18 to 28, we are more fervor was -- more frivolous. >> you have 18-year-old paying $20,000? >> 18-year-old's? >> or are their parents paying a complex their parents often pay. between success rate is

35-50. the success rate for the group was about 60%. >> exceed percent of the people you look up from 35-50, that relationship last at least six months. >> if they follow what we tell them. >> we have to go, but i have to ask. are the women looking for love and the man looking for sex? what is the differential? >> they are both looking for love. >> who is looking for sex? >> nobody. >> really? >> yes. >> i am listening today. >> a fascinating business. if youare single -- >> are single and have $20,000 lying around, this is an awesome thing to do. up, kroger to the internet. it's the largest supermarket .hain by an online retailer we will be speaking with kroger's cfo. and today more than ever, you will really rich -- wish there was a commercial cam, because

the questions we are about to ask in the next few minutes, seriously, you wish you could watch. ♪

>> there is a deal to tell you about in the grocery business this morning involving kroger buying online retailer via kos.com, which opus is on nutritional supplements -- v itacost.com, which is an online nutritional supplements company. the cfo of kroger joins us now. why nutritional supplements and why online? it is excitement about this opportunity with the health and wellness trend in america, and we believe it is a trend, not a fad. push through our are veryal brand, we happy with their online presence and the ability for our

customers and to extent -- expand our reach. they are all shelfstable products and have the right metrics for an online business. but what is the appeal? -- >> what is the appeal? is it that vitacost will be a use forthat you can your own channels? or you will bring it into the brick-and-mortar stores? >> i think it will be some of both. brands and vita cost has their brands, so that is a decision in the future. theit will give us distribution of our own corporate brands through an online channel that is a wonderful website and two for film and centers that are very efficient. that --ble to deliver

to be able to deliver that product to all the customers in all the states is a huge plus for us. your salescentage of come from health and nutritionally related products? itif you look at our sales, is about $80 billion. if you look at all of the things that are natural, the vitamins and the natural foods department, the organic and departments, it is probably between seven percent to 10% of our business. it is a huge portion of our business. >> seven percent to 10%, but what growth basis relative to the rest of the country? >> if you look at the natural foods department, that is at double-digit growth in the last three or four years and continues that so far this year. -- 12% to 13%3% inside the store. customer what the

wants. we don't force the customer there. and the customers aren't telling us they want -- are telling us they want more of those products and we allocate more space to them. >> which i assume is driving the logic behind its acquisition as well. simple truth is something kroger has had some success with. you alluded to that a couple of moments ago. how long before simple truth becomes a billion-dollar business? >> we would expect even without this merger with vitacost.com, we would expect simple trick to become a billion-dollar business this year. by the end of the year, at an annual rate of $1 billion. we launched the brand just about 18 months ago. we introduced 100 new items in that category just last year. >> and how do you feel this positions you, both with simple vitacost, as a competitor to places like whole foods? of the dry,ore

shelfstable products, not fresh product. nobody has successfully solved the hope -- home delivery. we have had our home delivery products like this for a while. we think this is koppelman three. -- complementary. wethink this is one more way can address customer needs, whether we have a brick-and-mortar presence or not. we are very excited about that opportunity. of kroger,the cfo for $280tacost.com million. >> coming up, some of the biggest crowds in sports, the daytona international speedway is getting a much-needed makeover. take a look at the 21st century transformations of nascar's i cannot -- iconic venue. daytona is rising. the have a billion-dollar revamp of an iconic venue has taken off. and the race is to finish it for a 2016 grand opening.

>> if you're going to make this kind of investment and reimagine american icon, daytona is going to be the place to do it. >> daytona speedway is in the midst of a three-year renovation event.-year-old >> you walk up and on the stairs and it will wear you out. >> no more of that for the fans. escalators are coming. >> they will be 40 of those bad boys. >> 40? >> 40 escalators that can move up and down. but would you say the escalators are the single busiest -- biggest expense? >> i would say the field is the biggest expense. -- the steel is the biggest expense. wider seats with cupholders. it will lose over 45,000 feet.

furred -- this a first-class experience, wider seats, and you don't want a place that doesn't live up to those amenities. can come here, congregate, and enjoyed. by stuff, made -- and by stuff, and maybe some food and drink as well. >> one of the newest entrances will be covered by toyota. 500 companiese participate in our sport like any other. you better make sure you have the right corporate experience to match up that budget. we think there is growth for us. >> but some things are not changing. >> it will be the same racetrack

. it is the amenities that we will fix. >> the speedway is angled at 31 degrees and the corners are not changing either. >> you are almost sliding down the asphalt. >> asphalt. get it? makers, don market not miss our exclusive interview with lisa france kennedy, the co of speedway corporation. reg penske is the co of penske automotive group, and toyota north american head of operations, bob carter. >> toyota is going to be a expositor of the new daytona. -- to be a big sponsor of the new daytona. >> before now, even though there were 150,000 seats to my there were no escalators in the whole place. you were hauling your cooler up to the top. we will have that and more.

stick with us. ♪

in the fast lane. the business of motorsports. i will show you what the renovated daytona speedway looks like at 180 miles an hour. >> speaking with the most powerful people in the racing world. penske and bob carter. >> welcome back to "market makers or geoeye mayberry excited stephanie ruhle. >> i'm an equally excited erik schatzker. in washington, janet yellen is taking the stage and an imf

conference to talk about monetary policy and financial stability. has had its foot firmly on the gas pedal for some time. investors may like what yellen has to say. peter cook as the headlines for us. welcome back from africa. >> thank you very much. let's talk about janet yellen because she is about to wait in the growing debate around the -- fosteringing financial stability and whether monetary policy should be used to promote stability and to deal with prospering markets and bubbles. a clear no. monetary policy faces a significant limitation. she favors a macro approach to supervision and regulation that promotes financial system resiliency. she goes further to make clear her views. this is what should be important to investors. i do not presently see a need for monetary policy to deviate

from a primary focus on maintaining stability and maximum employment to address financial stability concerns. i do see pockets of increased risk-taking across the financial system and acceleration of broadening these concerns could necessitate a more robust macro credential broach. what are those pockets? possible underestimates of asset market volatility going forward. the leverage loan market as well. the fed sees "no systemic threat to leverage lending at this point." all of this bears careful watching of the fed's macro credential approach are not enough here. if the fed would consider deploying other tools, including the potential for monetary policy. the fed is not going to start raising rates to deal with financial stability concerns. instead, it will keep focus on the labor market and inflation going forward. that puts her at odds with other central banks around the world. >> thank you.

can you believe you ran into my husband in kenya? >> unbelievable. >> unbelievable. isn't that crazy? there you go. , life in the fast lane. we are in the fast lane for the next hour here on "market makers." exploring the big is ms. of nascar. i want to take a look at what what makes car racing the biggest sport on earth. -- exploring the business of nascar. 1968.ng racing since let's start with you. why should we care about nascar? last i checked, it was a southern sport.

>> it was that way until the 1980's and it began to expand and become a much more national sport in the venues and the competitors. it has changed a great deal from its early days with its southern roots. it really is a national sport. it has got tremendous corporate sponsorship. amongst the car manufacturers and amongst many well-known american brand names. it is a huge sport. it does have a huge fan base. >> why is that? why are there more fortune 500 companies that advertise in nascar than any other sport? >> you have to get advertising. you have to get sponsorship if you want to run the race. it is too expensive otherwise. it's not like basketball where you can put on a game without any advertising. it is a requirement here. >> but why do these companies want to do it? the toyota sell more cars? >> that is not was clear.

there are two kinds of sponsors. manufacturers like toyota, chevy, ford. then there are sponsors like home depot and lowe's and coca-cola. they are advertising on the cars themselves. --t is where we have seen home depot announces they will not be back next year. they have one of the best drivers and they don't want to come back next year. that is a big thing. >> you wouldn't know as well as anybody, what advertisers want is the demographic. who does nascar appeal to right now? are those people the same folks who would appeal to 10-15 years ago? >> no question that the basic demographic has changed. and is changing. perhaps it's not changing in the way that nascar would prefer. they have an aging audience and they are not generating the youth market they need. >> what are they doing wrong?

why is the sport not appealing to millenials? because opinion, it's the sport is not very relevant technologically. we are in a whole new different mutationsms of technology. everybody has an iphone. is technology of the cars way beyond this. they are antique cars running v-8.tional american 50-year-old item. indy car racing, they are writing small capacity turbo engines -- >> i believe everything you are saying. you're talking to a gear head. i understand a little bit about it. how many 20-year-old kids don't

want to go to a nascar race because there is no fuel injection? >> 20-year-olds love technology. they are spending $400 million making fatter seats. should nascar be spending money on technology which is what young people care more about? >> i think they should. no question about that. they have to attract them. , it is about racing quite disturbing in the past 10 years or so to see that the youth of america just has no interest in so many forms of automobile racing. it is a conundrum for the entire sport. formula one has the bells and whistles. they, too, are suffering from declines in the audience. suffering from the same issues. >> that is the point.

it is not about the technology. i would make the case that is because we see consistent results, but inconsistent rules. every year they changed the rules in the sport. different ways to win the championship, different ways the points are set up. they keep trying to change it --ause i think it will technology does not matter because they're just watching racing. maybe people have found better things to do than watch cars drive around -- >> maybe people have found watch things to do than gu guys tackle each other. >> they have gone and done deals with the second-tier cable companies. on thel see races sports networks. it is not the same as seeing it on nbc. from thealking away

sport because it is not worth it to them. >> they have not seen me slide down asphalt. they will change their whole strategy. just want to let you know. >> it's not even worth it for them -- the money is not there. drivers are not spending the effort to come and enter the race. >> gordon? they have built a tremendous ladder system. there is a whole pile of new talent. kyle larson and austin dillon this year. you have a whole pile of talented, young drivers. they have done a great job that way. they have a very strong contingent of drivers. the problem i believe, a key problem, going back to the gray days of nascar, richard petty and dale are, those drivers were real personalities. they had a real personality and

a real cutting-edge. for the past 20 years, the drivers have been turned into pitchman. jimmie johnson is a great racing driver. six-time champion. he is accused by many people of adds.mr. jeff gordon has a personality of his own. the rest, pitchmen. i have heard this from many nascar fans. they're not interested because that is what the drivers are to them. they are not racecar drivers in the traditional sense. >> can't believe you didn't mention danica patrick. thank you so much for joining us. gordon kirby, the u.s. editor of motorsport magazine. up, a member of one of the first families in auto racing. the ceo of penske motor group, greg penske himself. >> here is what 180 miles an

hour looks like at one of the most famous racetracks. that is me in the car in the passenger seat. terrified. we have that and more. this is market makers. we are digital. you can see all of our stories and interviews on bloomberg.com and bloomberg tv plus on your tablet and apple tv and amazon fire. ♪

>> we are back in the fast lane here on market makers. we are joined by a very special guest. greg penske, the ceo of penske motor group. part of the automotive empire. one of the biggest players in the nascar world. take you for joining us. one of the biggest players in the nascar world. --a time when the sport viewership is down, attendance is down. why are you so big and sport --

big in the sport? >> you look at the beginning of the season, nine of the top 12 ports event this year on fox were number one. one in theer february-june time frame. compare that to the nfl. number two player there. they talked about the younger demographic. , 18-24 timeframe as well for that audience is up about 3%. we are seeing the engagement. nascar has done a good job with their digital and social. try to reach out to those fans. they are up over 100% in regards to the social side. you look at those numbers, it bodes well for nascar. the other thing, it is different from other sports. get the fan into

the locker room. you look at today when a guest comes to an event, they are able to rent headphones and listen to what we are telling the drivers. listening to our strategy. you could with a ballgame or basketball game, you're not in the locker room. there is a lot of positive and how we are using technology today. it has changed over the past 10-15 years. >> what else could nascar and the sport in general due to broaden its appeal? not just to people, but two more women. do they need to run different kinds of cars? do they need to go green? a couple of things -- they are doing a lot. you talk about the investment at daytona. is our super bowl of racing. it's the start of the season. you look at the commitment, people want to have a better experience.

we are competing with all the different venues. sport's dollar is getting tougher. we have to get more competitive that way. race track their will be very positive. we will have more fans there. at the end of the day, tenants at all sporting events -- attendance at all sporting events has been down since the recession. we have to do a better job with activating the fans, getting more engaged with the drivers, which we do. a lot different than what you see with stick and ball sports. at the end of the day, we are still getting a pretty good response in regards to the 18-24 market which is coveted. >> you were talking about what happens at the track. in this case, at daytona specifically. renovating daytona and getting

people more interested in coming to the track itself, i'm sure that is a positive. depends onimately broadening its a peer to people who are never going to make it to daytona. -- broadening its appeal. yout the end of the day, look at the sponsors involved in the sport today. has been 11%here increase in the fortune 500 companies that have actually invested in nascar. you look at when you come to all racetracks, a lot of the are able to bring the product to the racetrack. people are able to look at it and touch it and feel it. showeally have a mini auto . if you are verizon or sprint or other type of company, they can come in and show the technology and what they are doing. that is a plus. all the tracks have done a good job that way. they are doing the right things

on digital. have a fancy racing league. i racing league that you can go on and compete against other, younger people or nascar fans that way. continue to get that word out. on nascar.com,e scroll around and look at the different things they are doing to engage the fans. the key is the access to the drivers. when they come to the tracks. showing who they are. they're looking at more things to deal with the different teams. we are allowing the crew chiefs to be interviewed. you see these guys engaging with the fans. into thetting them locker room and showing them what we do day in and day out. >> let's talk about your role in running a racing team. are you trying to make money or is it a passion

project? >> my father raced back in the late 1950's. started penske racing back in 1967. it is a common thread with our company. we think about racing today, it is similar to business. game or, we have a race. do we have the right people on the field or the right strategy to talk to our guest and take care and service them? racing has been that common thread. for us, that is our brand. look at the racing team today, that has been a brand of ours. we tie that in with our trucks. a brand and our employees love it. they come to the races and are able to bring their families and have in the trucking side as well. we can bring them into the locker room with our teams. >> how do you decide which class

you want to get behind and how much money want to spend on it between nascar, indy and f1? we have been in all three of those series. we are focused on nascar and indycar today. indycar today has 18 races. nascar has 36. that is what we focus on. job.both do a very good you have the daytona 500 and the indy 500. you look at the pr you get when you win races. we won daytona in 2008 with ryan newton. we have won the indy 500 15 times. you look at that from a company perspective, when you windows races and the next day the media and the different pr we get from winning those races is a plus for our company. for us, it has been our

advertising for our company. we have been able to have great partners over the years. shell, verizon, snap-on. we do be to be with them as well. 2b with them as well. they see something that is a positive. they will start engaging in bringing new fans. sprint has done a good job as well in regards to engaging fans at the track. they have these tvs you can go in car on camera. we will continue to see that activation. today, 18-24 up 3%. v sportingt tv even event behind football. those are all positive things

when you look at the data. >> thank you so much for joining us. greg mentioned his father. the owner and chairman and ceo of penske motor group. lucky him. up to my renovating a nikon. coming up, renovating an icon. ♪

>> coming up after the commercial break and her family's name is synonymous with nascar. lesa france kennedy has a big job. revamping the sports best-known

track. >> maybe this will give you an idea of just how steep the bank is. there you have it. ♪

>> live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> welcome back. good nascarg a very morning. let's take you back to daytona where it is officially rising. that is the tagline -- $400 million redevelopment of nascar's most iconic menu. the ceonce kennedy is of the international speedway corporation which owns the daytona speedway. i sat down for exclusive interview with lisa to ask her why she's pending such big dollars down there in daytona. that is what our fans want.

the track was built in 1959. we need to take it to the next level with modern amenities that you expect from a stadium. we are building the first true motorsport stadium. that is what people expect. wider, more comfortable seats. much more to do as far as the guest experience. -- luxury suites will have 50 luxury suites. >> are those going to be for corporations? fortune 500ore companies involved in our sport than any other sport. we think it will appeal to a wide range of them. sponsors, toyota was the first sponsor you had here. how did you make that sale to them? >> we love toyota. we've had a great partnership with them.

they stepped down and recognized the value. for us because they are a forward thinking organization. has it been harder to get sponsorship since the financial crisis? >> overall, it has been something more challenging. it is up to us to continue to provide more value for them. and get more creative with our packages. we have examples we are rolling out with the daytona rising project. >> some sponsors are saying that we don't need to have our name on the back of the jacket or the side of the car. we want to embrace the social media world. >> cling back to the injector and the value, it is somewhat traditional signage, anyway. the way toyota is going to do

this will be far more creative. you will see something that is far bigger and far more creative than the traditional layout. there are also extensions you have put social media that would add on that. they want to touch on other points. there will be less seats. how will you make up the revenue? >> there are all sorts of revenue opportunity within the track. he will be able to get under the into the track for under $100. once you get to the race track and see a race, we feel like it is so easy to continue that. to continue renewing that fan base. we get you here once and you're hooked. why not spend on the cars? >> we have invested across the

board. we are investing in ideas in daytona rising. a lot of money from nascar has been put into rmb and improving the safety of of the cars. d and improving the safety of the cars. that changed the dynamic of the track. >> why are things slowing in terms of viewership? >> we look at viewership as a long-term. fickle.ten times our are experiencing product in other ways. we don't look at viewership as specific time frames. it is a long-term. up,eople are not looking but looking down. are they going to be able to embrace social media while being

nascar fans? >> absolutely. that is a total necessity. we've been to different venues where you lose connectivity. it is not a fun experience. you want to tell your fans where you are and what you are experiencing and how much fun you're having. we like to get that right. >> and extreme nearly idea. clearly a big plan. massively expensive. in what year will you know if this has paid off? >> it will be several years. you see the continued rollout. you will see a lot in 2016. you will see the enthusiasm. continue tom will boost our confidence in reinvesting. >> does that mean you want to open more racetracks? >> right now, we're focused on the ones we have. making sure those are up to par and continuing to modernize them. >> there you have it.

nots amazing that there is a single escalator in the place. even though they are sticking with the tradition, they have changed the rules in the last years. they have to be relatively small coolers. i think it's ok. you don't need to be -- >> she gets a helping hand from daytona. we dog on atlantic city. they don't have the same problem. >> they don't have a direct flight. miami like to go to because there is a direct flight. they need to try to partner with commercial airlines. there,ing direct to get not that hot. --the japanese automaker

talking to a top toyota executive to find out why the company is teaming up big time with daytona. ♪

"market makers." stock-car racing is not for the big three. toyota has been a fixture for a decade now. most recently has become the first company to sign up as partner of the revamp of daytona speedway. why daytona? why daytona rising? why does toyota feel like this is a great opportunity for your company? have to step back and look at nascar. it's part of the american culture. toyota has grown in the west to the point that we have over 40,000 associates.

we wanted to be a part of that culture. you have to look at the heart and home of nascar. that is daytona. >> what are you trying to appeal to in the nascar viewer? you and i note that when people think of toyota, they think of the camry and corolla. that is not necessarily synonymous with what goes on in nascar. >> nascar provides is one of the best marketing platforms throughout the united states. it is one of the most popular sports. it is motor sports in the u.s.. nascar, thek at importance of daytona can't be disputed. when we heard about this toyota rising project -- daytona rising project, we thought it matched with our goals. we are constantly looking for ways that we can engage with their consumers and demonstrate our products. this was the perfect opportunity

to showcase our camry, which is our leading vehicle. the number one vehicle throughout the u.s. it is the vehicle we race. it is a perfect opportunity for us to join with nascar and join with daytona speedway and provide a customer experience that is unique to the entire automotive industry. >> how do you measure the success of this partnership? being the founder partner of daytona rising. how do you measure that this is going to sell more toyotas? >> personally, i'm a fan. i've had a lot of nascar races and i've had an opportunity to speak with many of our consumers there. when we are acted the track, we used to show up at the race and go home. today, it's more of a full day activity. with displays and other hospitality events. this a family

event so we can showcase our products. both at the track and throughout the tv viewers across the country. a perfect this was way to showcase our products and showcase our competitive experience and provide our consumers with the enjoyment of motorsports. >> toyota's name is synonymous with the hybrid revolution in north america. the europeans are fine with diesel. the only alternative to gasoline has taken up in this country, the hybrid. do you see a place for hybrid technology or something else that is greener in the autoracing circuit? >> the green initiative that nascar and the racetracks have going on is spectacular. greeneve it's the finest initiative in all of sports today. when we go to the track, this gives us an opportunity to not only showcase our trucks and

but to which we race, showcase all of our products. we move around the country and we take a display bar hybrid in the masswhich is markets today. we are fortunate to lead that market. nascar is no important part of our exposure to consumers of what this technology is. we have brought that to the united states over 20 years ago. for many consumers, it is still new technology. it gives us an opportunity to explain what the benefits of that technology is. ondid you pull back advertising in other sports to make this major commitment to nascar? sports.e active in all clearly, motorsports was a conscious choice because it is one of our premier sports because we thought it was a great fit with the brand. it is a great partnership we have with nascar.

we believe it's part of the american culture. that we knew 10 years ago was going to be ace we neededsport that to and wanted to participate in. the response we have gotten has been fantastic. >> how do you measure the roi here? is it just a matter of toyota partnering with nascar because it makes toyota feel like more of an american brand? or can you measure in some way the sails that you get by having people identify more with toyota at the nascar track? >> we measure it very closely. before we entered the sport back in 2004, we looked at the huge population of american motorsports fans. we gauged their interest in what vehicles they are buying and what they have in their garage. 10 years, wer

continue to monitor that engagement. it has proved not only to be a fun and exciting marketing platform, but we are confident the return on investment that we will see from motorsports is well worth the investment we have put into the sport. >> thank you so much. good to have you on the show today. bob carter. >> thanks for the escalator. howng up, you don't learn to drive like this in driver's ed. what 180 miles per hour looks like on the fast track. we take you for a spin around the daytona speedway. ♪

>> welcome back. the tone a speedway is known as the world center of racing. what does it take to race on one of the world's most iconic tracks? take a look.

richard petty, jeff gordon, dale earnhardt jr. have all made their mark at daytona. now, it's my turn. say?do they let's get ready to rumble? what do they say before the race? today, i'm riding shotgun in a nascar race car. >> we will be going 170 miles per hour. >> it is super loud and right next to the track. how loud is it in the car? >> to be honest, you may hear a lot of initially, but you are so focused that you will forget about the noise. >> the noise will be replaced with bone chilling fear? >> yes.

>> i'm rocking a fire proof driver suit and helmet. i am so scared right now. this is no joke. >> my ride was five-minute -- was a five-minute blur. i reached a top speed of 180. amazing! three turns around the track, i'm converted. i'm a nascar fan. there you go. matt miller maybe our calr aficionado. he better move over, because i've got the fever for nascar. when you say there is a 31 degree vertical, look at this. that they showed this

video because the video of me trying to climb up at the top is just nasty. nobody wants to see that. >> we are back in a couple of minutes. ♪

>> that is it for "market makers." i was disappointed i couldn't be here yesterday for canada day. happy canada day. >> i was in colorado.

>> one day late. let's just honor the great white north. >> we have to talk about fourth of july coming up. for thell get you ready big holiday weekend by talking all about meat. crisis have been soaring. we will talk to one of the biggest meat purveyors. -- prices have been soaring. commonve way more in with her than i thought. them. loves that will be it. i'm leaving for the week because i have to head back down to the beach. it is fourth of july. >> it is 56 minutes past the hour. bloomberg television is on the

markets. here scarlet fu. >> we are seeing some tentative gains in the west stark market. -- u.s. stock market. of move to indicate that will breach that 17,000 level. things are moving in a somewhat upward direction. they have been fluctuating all morning long. joining me is the equity derivative strategist. we saw a bit of pick up in the cash market yesterday with the start of the second half. do you see that activity in options? >> options overall are very slow. time, we are looking at low volumes and slightly trending higher markets, people are concerned about hedging. when we are talking to our investors, we are talking about the smart way to hedge it by buying the fomc.

suggest buying the fomc option out of the and selling a week before option out oality. that is the biggest catalyst. in the next couple of weeks. speaking of tentative moves come at the west is taking some initial steps towards crude oil -- the u.s. is taking some initial steps towards crude oil. you are looking at the options activity in oxon hill petroleum. basically -- the stock has been holding steady. it has been underperforming its peers. with the oil at such high levels and stock really not doing much else, there wil people will be g

for them to take the actions they have said they will take. what we saw today was a seller of 30,000. it a fewave bought weeks back for $.80. it seems like somebody is taking some rockets off the table. >> you have a trade for us on mgm. how big is is making a bit of a comeback. -- in vegas is making a bit of a comeback. the convention business or the gaming revenues in business is strong. the gaming stocks have been trending double-digit growth. china is slowing down.

we saw that china might not be as bad as we think it is. my call is to buy the august 28 dirty call spread -- august 28 30 call spread. pay about $.20. >> thank you so much. we are on the markets once again in 30 minutes. "money clip " is up next. ♪

welcome to "money clip," i am adam johnson. we got a blockbuster show -- suing to yous mobile for bogus charges. what comments does john leg ere have for us this time? what gets bill clinton pumped? he will tell you in a bloomberg exclusive interview. a summer wine was from one of the biggest importers in the country and finally we have an ultra-deluxe powerboat known as th