stocks. the just have not been as many splits as there were. the value traded is still in line. people are waiting for the fed. >> waiting for the fed to give some kind of senegal -- signal. "market makers" is next. >> live from bloomberg headquarters in new york, this is "market makers." with erik schatzker and stephanie ruhle. >> paying the price. bank of america will sell out -- a lot almost 17 billion to settle claims it misled investors. >> the pipeline goes dry. cutting off sales of the country most viable commodity. lex the bucket list. every time you turn around a celebrity is dumping ice on himself. is this helping the fight against the dreaded three -- dreaded disease? >> welcome.

i am alix steel. >> have you done the bucket challenge? i have not. i would not mind donating money. i do not see myself doing the bucket challenge. >> i challenge you. >> you are like the seventh person and i am still not going to do it. going to existing home sales for the month of july. scarlet fu in the newsroom with headlines. >> for the month of july economist looking for a drop. instead what we got was an unexpected increase month over month. existing sales rose 2.4% from a month ago. in terms of an actual number, 5.1 5 million, higher than what economists had been looking for. i was told 5.1 five millions the highest level since october. some good news on the housing front. we know the federal reserve had been siding housing and

weakness, but concern is the slowdown as you look at the rotter economy. another index is the leading index of economic indicators higher than anticipated as well. again of .9%. -- a gain of .9%. falling more than anticipated to below 300,000, a seven-year low and existing home sales and leading index coming in better than anticipated as well. in terms of affect on the stock market, the major indexes moving to session highs and have come back a little bit. the games are fairly moderate. the s&p 500 at a record high. closing high earlier this month. the dow with than half of one percent to making a new high as well. >> i will take it there. s&p, 1989. on the

not only a great year but getting closer to the round number of 2000. of meaning anything it does not mean anything but a nice round number. >> moving on, housing markets will be one of the topics at the hole,eting in jackson wyoming. gathering for the annual event tomorrow. all eyes on janet yellen's first speech as fed chair. michael mckee has been mingling with the movers and shakers and up probably wait before dawn. what are some of the different scenes we might -- seems we might hear this year? >> the main theme is academic, the changing dynamic, labor market. the fed and participants here to look at this from 10,000 feet but wall street will look to see talks about it

in terms of when interest rates will change because she tied labor market very closely to the outlook or interest rates. as we see the economy gets better, a lot of people say interest rates will have to move rather -- sooner rather than later. that was a message i got from the kansas city fed chairman, the host of the conference, when i spoke with her yesterday. getting closere to that. of course the committee will work through this systematically in terms of the progress to do that. and my own view, some of the policy benchmarks that we have looked at our already signaling we should be about zero interest rate. theill continue to watch economy unfold, but i think we are getting to a good point. follow on to what happens

is what happens when the fed starts to withdrawal on the do we see the market activity we have seen in recent months with getting close to the records? is there going to be a lot more volatility? george thinks maybe not. like so far between communication from the committee , the market has responded and the fed has not reacted to movements in data but kept a long-term focus. so far, so good. phase, moved to the next our stance of monetary policy, there could you volatility. we have been at low for a long time so will be important to communicate and communicating how the path of interest rates will go. it will be interesting to see how the markets react tomorrow. scarlet was talking about muted reactions to the economic indicators. that's maybe because most investors are looking forward to

what janet yellen will say. reality --the reality janet yellen will say anything different? wall street will not actually be there but what will she say to them? >> that is the interesting question. probably she cannot say anything different because not all whole lot has changed in the labor market to be you. we may hear her update us on whether she thinks things are improving more quickly but i would doubt it. this is not a place where she wants to make a lot of policy. ben bernanke did. i think they're trying to get away from that. >> labor market wages, all of that on the market. michael mckee in jackson hole, wyoming. >> brian moynihan writing a very big check. bank of america agreeing to pay $17 billion for misled -- allegations for misleading

investors in the bond business. geiger here with more on the settlement. we also have michael bowie, a andner at catholic ensign friedman to discuss the allegation. owitz, benton and friedman. >> they have already paid $55 billion largely due to the acquisition of countrywide and some of it due to merrill lynch. this is the last big push for brian moynihan to get past the legal issues dating back to the financial crisis tom and i think there is a big sigh of relief that a lot of this is over for them. what about personal prosecution? now we are done with the big banks, now we will go after the the former countrywide

it other executives are now seems like going to be sued statute that a gives the government very broad thel ability to punish executives. it seems like they will do that. >> not with jail time, with money. >> talking about the former ceo of countrywide, andrew mizuho. >> there was an investigation against him. he has a $65 million settlement with the sec. this would be a much more powerful suit against him. the penalties they can impose are staggering. they can take any amount equal to any profit or gain he made or any losses to anyone else. to others would exceed anything he made.

>> the strategy the department of justice is using for this is billion dollars for. .nd thank for america paying 17 at has a 10 year statute of limitations. it is a tool the department of justice has been using to reach back into the banks and pull out the fines. the criminal statutes are pretty much expired. they really cannot press charges on a lot of the individuals at this point. -- mozilla would probably rather spend time in jail than heart with his honey. >> will it really bankrupt him? it will be really interesting to see what kind of money when they filed this they are looking to get out of him. >> does wrongdoing come with this? he did not admit wrongdoing. >> if he settles, they may or may not require wrongdoing.

there is a precedence in the u.s. case against countrywide. a case in the same statue but the small divisions that had a program called the hustle. what is interesting about that, it only went on for nine months and was a much smaller unit and , the person in -- these they find judgment was $1.3 billion. the executive was on the lead penalize the million because the executive did not have money. that gives you an idea of the size of the penalties are enormous. it would equally consume everything he has. >> that was a case that went to the jury. i think if it does go to the dangerous is a situation for any individual involved with the financial crisis.

these guys number of who blame for what happened. executives bunch of that are now gone who say these were brought on by you. a jury trial can be really tough. >> to get back to bank of america, what do you think we will see as actual relief or consumers because that is a huge part of the settlement. times thesea lot of things get buried back to the bank. regulators do not even understand what is going on. how do you measure of relief to consumers and will consumers feel that? >> i think bank of america and the government will have to be really careful on how they set up the program and how transparent it is in terms of getting consumer relief to your everyday person hurt by the mortgage crisis. so the way they set this up, i

think there will be a lot of eyes on how the consumer relief is set up. the same for citigroup last month. they had a portion going to consumer relief and there will be a lot of people looking to make sure those funds get dispersed to the right people. >> thank you. joining us on this very important topic. i am sure you will be with us the entire day. >> timeout for the newsfeed. family dollar stores rejecting at $9 billion takeover offer from dollar general. the reason, antitrust regulatory board. they reformed support for lower prices from dollar tree. now 30 quarters and counting. that is how long sales have been falling. it's the years reported a wider second-quarter loss. the seal has been selling and spinning off assets to raise cash.

arrays are bank of america and goldman sachs. 20% pay hikes to prevent junior staffers leaving for private equity firms and hedge funds. and citigroup considering smaller plans. >> coming up, the war in iraq damages one of the most lucrative industries. we are there on the field and we visit the oil fields. >> the best paid ceo in america. his country has never hosted an annual profit. we will find out who he is. ♪

>> iraq has the fifth largest proven oil fields in the world. the chaos and a kurdish controlled north is starting to cut into production. willem marx traveled to this area and disputed. what have you been finding? in my research all life wind up hearing about is how reduction is still relatively up to par in

the region. proper,e kurdish region that is true, they are still pumping oil. they have been tightlipped about how much they're pumping because they do not want baghdad to know the exact amount. ,n the area i was in yesterday they are really struggling to get anything out. are not able to export the oil. the major refinery is struggling. getting gasoline is a big challenge. >> are they successful and processing their own oil and shipping it out themselves? again? >> has isis been successful and refining oil and shipping it out themselves? have been buying from small refineries. they have been taking the crude from the wells in the country.

they are using truck to ship it north and sell it to the private buyers. we went down this morning to a local refinery opening up to thew and we talked investor. he said he will start producing 6000 barrels per day to turn crude into oil. fornd here is so high gasoline, kerosene and benzene. >> i have to ask you about your safety. you have been on the ground covering the events for a few days now. .efore that you were in israel obviously you must be close to isis forces at some time. incident, jim foley do you feel safe? are you taking extra precautions? >> not particularly. enclave. a very safe

traveling down to the front line you get a little nervous but there are cap lines everywhere. unlike james foley operating in a very lawless part of cereal when he was captured. >> you mentioned the oil fields are not really producing. what are local people doing for gasoline. what is the real issue? parts of the iron he is the world's fifth-largest world exporter, they are having to get products to fill a car. it means you are taking three or four more times than a month ago. people say this is obviously quite disastrous for them. >> joining us outside of herb you'll. we really appreciate your update. interesting to look at the comes tohip when it

oil. quite contentious. people do not want to know how much is being produced or perhaps exported out of the region. oilics dan once more revenue. iraq says it is all their oil and will go a lot, to their able to receive from that. there are whole war started over this sort of thing and that is why it is so important to follow. does not seem to have to much of oil price. the not affecting brent or nymex crude that much. >> a large reason is we had oil fields in libya come back online. most analysts were caught off guard because of that. been overtaking the geopolitical risk. >> we will continue talking about commodities because we have alix steel on set. we will be back in just a

minute. stay with us here on bloomberg television. ♪

>> approaching 26 past the hour. time for bloomberg on the markets. the s&p 500 index hitting an all-time intraday high. initial jobless claims last week calling under 300 thousand. existing home sales of 2.4% for july.

also, we are looking toward the fed, what will the fed say? the economic news comes out positive. every single time this morning. we have had a great run on the s&p over the past few days and last week. orck the nasdaq hardly down relatively flat. the nasdaq hardly down or relatively flat. looking for janet yellen to talk tomorrow in jackson hole. i am sure it will be relatively the same. looking at the family dollar store he, rejected more than $9 million offer from dollar general in favor of a $.5 billion offer from dollar tree. this is one of those things that say i wonder why? probably something to do with management

there. more money is more money. fax dollar tree laterally has products under one dollar. , a broad discount store. dollar general has the same story. they are both trying to buy the worst performer in the space. , guess am a shareholder who i am going with? >> you will go with the higher bid. then you have concerns about your job, legacy coming future. >> of course we have seen carl icahn push for merger. >> coming up, time to get into junk bonds now? we will ask the fund,f the biggest hedge blackrock. >> taking the plunge to fight way wes a change the

look at charity fundraising. ♪

>> welcome back to "market makers." happy little friday in honor of erica. -- erik. >> we're in for eric and stephanie who are both out. who knew there would be so much news in august? investors keeping a close eye on iraq. our next guest says geopolitical risk was the biggest factor in the junk bond selloff.

as risk drives them out, is now the perfect time to the getting back in? here is the head of credit of blackrock jim keenan. let me ask you first what you news wethe conflicting are seeing? the credit markets tend to turn tail and run. the equity markets continue to rise. i think when you look at the correlation of the timing, they have moved in line. you saw a pretty big selloff in the market. opel back in the s&p market. down eight 2000 was percent. the high-yield market and outflows use all happened because of that. that is a reality that investors pay for certainty. the offenseisk of

changing economic landscape cause a pause. high-yield landscape of 1.5% over the past month. you have seen inflows coming in alongside equities. >> use all the big outflow and then it was fighting a dip for that and then with all the inflows. longing seem to be more full of fact. >> the reason why you saw a pullback has been somewhat of a pullback. the russian situation has pulled back a bit as they've moved away. the fears of a reset or near-term rate increase. the market has started to absorb or digest some of the fears and you see the risk on the market. there was not a credit issue, earnings issue. has come back as those fears have somewhat calm down. feeling that we should see smooth sailing for a while and high-yield but there could

be a turned down over the next six months, year? >> still a lot of risk of the market. as you see the geopolitical risk and inflationary data, these things cause some level of volatility, the range of volatility will depend. >> they will not shake your face. what would be a trigger that would really tell you it is time to get out? any of these- events would change the economic outlook. that is where you change the spread. recessionary data will cause a risk of the high-yield market. i do not see that right now. >> mike that come from the geopolitical risk or central bankers changing policy? >> either or. one of the central bank monetary decision and one will be more of a fiscal decision. are the things. i think the monetary policy is a

little bit more visible. we know the fed will start to pullback liquidity from the system. timing is all in question. the geopolitical risk is a bit more uncertain because it can escalate pretty quickly. that is why the market has three -- had a greater degree of pause. >> one it comes to the credit market, is that the fed or more the ecb now? >> i would say the credit markets are the global economy. you can say the monetary policy has done a significant amount of avoiding -- avoiding deflation, which i would say would have caused a more significant risk of recession. when you look at the credit markets in general, as you've seen the monetary policy and fiscal policy come back, it has reduced the risk. thisou are starting to see with regards to operational earnings. when you look at the equity markets, it has grown.

the credit markets are driven on the same thing. the reality is credit is tied into the health of corporation to pay back the debt. >> we were talking to jack global, running up equities fund, and he said that reason you see negative yields in germany is not because of geopolitical risk that because there is no growth in germany. all of a sudden we find out things are not moving back to normal in europe. does that worry you? demographics, the world has so much leverage and continues to the leverage but the pace is important. you are seeing that in europe. they have other headwinds associated with that but you have not seen deflation. the ecb under mario draghi has been dovish. differentat which is than what the fed has. at the same point, very slow

growth. deflationary pressures. that is certainly a risk. i would say when we mention the monetary policy and the fed decision, the ecb, all of that has to be important with regards to the scope. >> am i too cynical and thinking we would not hear anything in jackson hole that would change your thinking on credit markets? >> i do not think you will see anything that will change the face of this. >> when you look at the credit markets, what sector's might you be avoiding? >> when you take away the more global macro picture, in a slow growth environment, you see winners and losers. there are sectors and place where there is excess capacity or more competition. those that are mismanaged or have tougher balance sheet are more at risk. you see that in more consumer

driven areas and restaurants and retailers. companiesa lot of doing incredibly well. you see that in cash flow growth. >> someone sitting at home saying i want more exposure to high yield, high risk credit, what do you tell them to get into? >> i would say in general you want to diversify. we're talking about an asset class right now that will produce five percent-six percent. in a world where it gets you five percent, high yield is still a pretty decent place to have a diversified portfolio. we still liked the asset class but we recommend people buy a diversified fund. >> inc. you. jim kanon joining us on "market makers." -- thank you. seen them come in the famous and not so famous pouring a bucket of ice over their heads to raise money. we will see how much good they are actually doing.

>> fund raising goes viral with a bucket of cold water. talking about the ice bucket challenge, a campaign to raise as lou gehrig's disease. everyone has been doing it. take them over twitter and facebook and has raised millions for the organization, including 10 million just last night. with us is the president of the greater new york chapter, who rank the president -- rang the bell at the nasdaq this morning. over 40 million. when we first started hearing about this, what did you make of it? >> we did not know what to make of it initially but very quickly it went viral.

we had a couple of families in new york who did it. then challenged one of the patients in boston. from there it went viral. for the first two weeks we received a lot of study donations. we broke $10 million saturday. $20 million tuesday. today we broke $40 million. i do not know what to make of it, it is remarkable. >> you mentioned a lot of the people are new donors, 260,000. how are you going to keep them getting in there is no more ice bucket challenge? about 500,000 new donors. it really has been an incredible surge. we're definitely going to engage them, but what is interesting is a lot of the people have a

connection with als so we will continue to engage them. audience, a younger audience because of the social media affect. manuals talking with cj emmanuel and said he really hopes it raises awareness and does not think enough people are educating themselves on als, are really looking into how this can be dealt with and possibly cured. to make headway with the cash? >> the als association has a three-pronged mission to find research -- fund provide, find a cure, patients services to families and patients living with als.

to advocateolicy for important issues in the community. so all of those mission ironies work together. cure, young for a mentioned engaging new donors and how will you do that you go .> initially we will thank them we have a lot to do to acknowledge the donations. we're going to send out regular them on whatducate we're doing on the mission, on the research program. and ask them if they want to be involved locally. our greater new york chapter is one of the largest. >> i am a bit of a curmudgeon

when it comes to these things but i was really excited and find george bush doing this on facebook. i thought it was a cool video and he has challenged other presidents. there is almost nowhere to go from here. what about president obama? as he then challenged? >> i think he was challenged by ethel kennedy. we have yet to hear whether he will take part. yes, he has been challenged. it is all over the world now. still more to do. >> have you done it? >> yes, i have. we have not. i have challenged math and so have many other people. we really appreciate it. fracking his way to the highest ceo salary in the , paid more than any other

chief executive in america. his company has never turned a profit. ♪

>> he is the highest paid ceo in the u.s. you have never heard of . the first company approved to build u.s. natural gas export terminals. he made $142 million last year. turned an never annual profit. investors do not seem to care that much. -- soaringtoring over the past five years. joining me to discuss author of the crackers, the story of the cowboys. chris mcdougall joins us now. great to have you here. it is one of the definitive book shale revolution. who is this guy? >> one of the

most unlikely characters to lead the revolution. poor investment banker, emigrant from lebanon. there are a lot of immigrants who have led this. did really well. went to ski in aspen for a while and ran out of money. started restaurants and bars and then set i will try this energy thing. he is one of the leaders of the whole revolution that has trans transformed the country. >> he started off wanting to build import terminals. noticed the change coming and said i will raise more money and build export terminals. how do you do something like that? >> he made a convincing argument. blackstone, top investors saying they're running out of natural gas in the country and will have to import

natural gas. turns out that only we do not need to import it, we have a lot of it. the stock tumbled, lost all of his money. .e was really in trouble he said if we really have this, maybe we should export it. at the time, no one was thinking about it. that is why it became the first to get approvals to export. insight.peaks to your how did he get so ahead of everyone else cap go >> i think it is a combination of the country having an entrepreneurial spirit. being very creative driven ceo. having a great team, and quite frankly, not distracted by other options. right across the river you have the golden past terminal, partly qatar.y there are several years behind

turning the terminal into an export facility. they were really focused on this as key assets and had to figure out something to do with it. thist me ask you about from an investor perspective. the guide makes one hundred 42 million per year, which is justifiable. if i am an investor i am willing to reward him with the big payday. a lot of people ask the question, what is so great about the stock if he is not making money you go are they going to turn a profit. so is there a profit at the end of the tunnel or what is driving the stock? >> what is driving the stock is two .5 billion a 20 year fixed-price take or pay contract for years. 2.5 billion of revenue per year thathe first this over the is under construction and going forward. another 1.8 or expansion terminals.

christi awaiting regulatory approval. giveo through the math and the company said up to generate 2016.s into the while that is a long way, you have the fixed-price contracts results going forward. that is giving investors comfort. >> to your point, it seems like a big number with no profit but take it as a percentage of market cap, .7%. percent back in 2011. this is what they were talking about, basically the contract. it is basically a reservation fee. i get the right to export. i may not use it but i will use it anyway.

two point 4 billion just from that. >> in revenue. not a made-up kind of thing. believe me, they will be making money. >> investors, they point out it is like a bond. >> it is like a contract. is fascinating thing to me it should have been exxon or someone like that leading it. it took entrepreneurs to leave the revolution. >> why is that? you would think the big integrated conglomerate would come in and own this kind of transportation logistics but the guy doing it is crazy. lex because the exports got it wrong. the experts all said we are running out of natural gas and oil. he and a lot of entrepreneur said maybe the experts are wrong

and do not have much of a choice. the stock without one. they did not have much options. are the integrated. appear play. >> here is my question. five years ago we were talking about importing. now talking about exporting. why are you so sure we'll still be around exporting natural gas than five years? >> the growth of natural gas production has been tremendous. think that is for fundamental reasons that the u.s. gas markets has that other countries do not. we have a well-developed industrial and gas transport infrastructure, great technology and the capital markets that really supports all that. it is important to tremendous growth as we experience what is really a big reduction in pricing.

so we think the market as well supplied going forward. stock, you look at the it seems crazy. these contracts, built in revenue must already be accounted for. where is the additional outside coming from? >> where we see it diced in forome the contracts. past those get contracted in and fully regulatory approved, you go to the corpus christie fant and the expansion trains. that is additional revenue. both on a contracted basis and cheniere has the right to sell the excess capacity from the plants. that is part of it. >> we have to leave it there. basically they end up exporting on their own. of you.spare the rest

really appreciate it. >> we will be right back. ♪

>> live from bloomberg headquarters in new york, this is is "market makers," with erik schatzker and stephanie ruhle. street's for wall millenials. senior staffers will see a big bump in paychecks. >> the most valuable sports teams in the u.s. who is number one? it is not always a matter of wins and losses. >> eat my shorts. 500 72 episodes of "the simpsons" in order. welcome to "market makers." i'm alix steel.

>> happy thursday to you. i'm matt miller. are confusing me. i think it is friday and then i get really depressed when i realize it is thursday. >> i'm sorry. i know it is hard for you. thursday, theis top news stories. bank of america will pay $16.6 billion. and 7illion penalty billion dollars for consumer relief, we will see if that really happens. a surprise jump in existing home sales last month. sales of previously owned homes rose to eight 10 month high. -- rose to a 10 month high. that american doctor who came

down with ebola in liberia is being released from a hospital in atlanta. brantley was given an experimental drug and received a transfusion from a teenage survivor. i'm sure hisl and family and friends were very grateful. >> the great grab for content. the time warner-fox merge may be a thing of the past for now. what about smaller media companies that could potentially come together? for a look at what media mergers may come together, alec sherman. -- alix sherman. >> i'm comped. -- pumped. big deals are off the sale for the time being -- table for the time being. i can't fully rule it out. consensus is to

wait and see what regulators decide on the two big deals. getr the distribution deals approved or rejected, then we will start to see content deals. >> fox-time warner is a lot of fun to talk about. and we will. as far as actual deals that look likely to happen in our lifetime, what are we thinking? >> right. this is going to be a progression. it is unlikely that we will see . large chunk like time warner >> rupert pretty much said we are not doing this. he said, forget it. >> maybe he comes back a year or two later. time warner may not want to sell to him a year or two later.

if he does sell to fox, it is admitting defeat. what are you hearing on the street? >> look to smaller content companies. mgm.lions gate, these of the companies that are thinking to themselves, we dodged a bullet with fox-time warner, but we still need scale to compete with the big content companies because if they get more scale, what is going to happen is they are going to be able to boost prices, cable bills will go up and the pay tv operators are going to need to make cutbacks on the channels they can afford to drop from their cable lineup in order to keep bills down. >> who are the buyers here? >> it may be themselves. theay see something like

two of them getting together. itcould see comcast, after agrees to buy time warner cable, if the deal goes through, maybe comcast buys amc. i remember speaking a couple years ago about comcast absolutely being interested in amc. is run by a former content ceo. they just spun off their new papers. they own half of the cw. >> that still exists? co-owns it.ros. and that may be something. or maybe scripps and tribune get together. that gets complicated. >> you mentioned lions gate. what happens there? may be lions gate merges with

mgm. dreamworks need scale. these movie studios could come together. maybe netflix decides they want to own more library content and they make a play for mgm or dreamworks. lions gate is an iffy one because they are based out of canada and could be an inversion target which has been all the rage recently or they could be a buyer and simply want to bulk up. >> you mentioned netflix. where does that leave the other guys like google and amazon? will they be forced into buying content? >> this is a stage game. that is going to be the and stage. -- end stage. >> who was going to be left at that point? havee big companies hundreds of billions of dollars of cash. thehey decided that business transformed that way,

they could afford to make a $70 billion purchase of one of these conglomerate of content companies. >> fascinating. >> it is fascinating. >> we could spend a whole hour. >> that is all a got. [laughter] some of thek about junior bankers who will be working on those deals who will see bigger paychecks. bank of america and goldman ,achs opening up their wallets boosting pay for youngest workers by 20%. jpmorgan and city are soon likely to follow. why the sudden generosity for the 20 something's working only 60 or 70 or 80 hours per week? cohan is a former wall street slave and longtime wall street watcher. these kids are working a time when they are young and not getting paid the kind of money that a lot of people had thought they were.

but -- >> the word only can make people crazy. people are not making anywhere near $55,000 per year. are talking somewhere around $80,000. let's keep this in perspective. these young men and women work very hard. there is a that supply and demand equation that is out of whack -- [laughter] -- [no audio] it looks like we're losing the feed. your point is taken. but it should be noted that making $55,000 per year or $80,000 per year here in new york city is different than in my hometown.

it is not a huge mountain of cash, especially if you are not only working 80 hours per week, but you are expected to go in on saturday and sunday as well. forget about just paying the rent. you have to figure out how you spend time with your family. >> absolutely. >> banks are trying to work on it from both sides of the coin. they do want to attract the best talent. >> absolutely right. adjust torying to lifestyle issues. they are trying to tell them they don't have to work on the weekends. and expenses here are very high. it is a gateway drug. then you can make a lot of money. >> who is the biggest competitor to the wall street guys? that firms and hedge funds or

silicon valley of the entrepreneurship spirit we have been seeing? >> it is all of that. this is a repeat of what happened in the first dotcom bubble in 1997. private equity firms, hedge the allure of silicon valley and entrepreneurship is very great, especially when you see fortunes made in silicon valley. the lifestyle of being an analyst at a wall street firm. become appealing at this particular moment, when there are a lot of deals, the stock options are high, people are feeling somewhat buoyant about the financial market. numbers likehese 55,000 dollars to $80,000. that is your base salary. if you added bonus to that, you are making $130,000 at the top investment bank, that is a

really good salary right out of college. mightrivate equity firms have trouble matching that. >> it is an credibly good. >> who is to say? ando they keep the talent they do have to go in on sunday? thanks for joining us, bill. author of many brilliant books. always appreciate your time. up, the sports rankings that only a banker could love. it is about the most valuable teams. >> a marathon is underway. you don't need running shoes. just stretch out on the couch and watch. episodes of "the simpsons." this is "market makers." we are digital. interviewsries and on bloomberg.com/tv and on bloomberg tv plus on your tablet and streaming on apple tv or amazon fire. ♪

>> george h.w. bush. the berlin wall had just come down. "the cosby show" was the number one show on television. came along "the simpsons." it came along in 1989 and it is still picking 25 years later. .t is the cornerstone of fx is -- 525r all 524 f episodes one to four hours per day in a hours per marathon. >> huge "simpsons" fan. >> alix isn't. >> tell us more about our favorite family. 25 years the show has been

running. in total, the franchise is worth more than $12 billion. --revenue to dvd tales sales, movie tickets, theme park merchandise, everything. wortheal is going to be $1 billion, particularly if they keep going. we are talking about reruns. this is full digital rights. it is no longer streaming live on tv. you are going to be able to watch it on digital, on demand. >> like bloomberg television. >> it is not yet on amazon fire tv and netflix. netflix is trying, but they did not get it. >> what is the return on investment it worth it? >> i think so.

they could get a spike in about 20 million more households. it is a franchise show. it is a show you can build around. it is going after young audiences. 200,000 viewers in prime time. something like the can build around cross promotion. it is a product going to anchor the new network. it is a prime graphic, skewed male. tv tends to skew female. it is really prime. is amazing. i remember watching it when it first came on the air. i remember my parents being a little hesitant. it was, is the show ok? now we are 25 years later.

my generation continues to be the target demographic year because the median age for watching the simpsons is 35. everyone was watching when they 5ere 1025 years ago -- ten 2 years ago. it is in this animation domination block on fox on sunday nights. it is not as popular as "family guy." when you look at the revenue for the last eight years, it is one of the 10 most expensive shows to buy in prime time television. top 15 inanks in the 18-34. median age of 35. broadcast networks had a median age of 55. this is where they get the revenue. you get young, male viewers to the show and a lot of advertisers want to reach them

and they are tough to reach. >> where do you get more viewers? isoffense, but maybe alix aged out of the demographic. will anyone like hard-core fans like alix and matt even watch it? you can look at something like "the big bang theory." it is ubiquitous. it has not hurt the numbers on cbs on monday nights. it could find new audiences. it could find viewers watching the sun affect sex -- viewers watching it on fxx. people may say, the first five years were great. >> i would much rather watch a n a new5 episode tha episode on fox.

i would rather watch a repeat. >> doesn't it drive viewers to the current shows? >> i would prefer to watch something new. seen season five at least every episode 25 times a piece. >> you would rather watch a poor quality version of the show? >> i think some seasons were better than others. but the developer or characters, the storyline a cuff familiar with, i get all the inside jokes. it is nice to see something new. simpson-ville. [laughter] >> they are entering the 26th season. after this season, there will be 574 episodes. it is a show that ranks in the top 10. for thosegoing to end

reasons. it is going to end because the creators decide it is enough. it takes $500,000 to produce the simpsons and six months to make it. >> there is a huge amount of money. >> george bush has been in the simpsons. he long must was in the simpsons. usk was in the simpsons. it is kind of like charlie rose. if you have made it, you will be on the simpsons. [laughter] >> netflix has been so successful. this goes to show there is a huge, lucrative business just in reruns. the gamee the name of is not original programming, it is premium programming. something thate is going to allow the pay-tv operators to pay up. >> the reason why it is expensive.

sopranos" were the most expensive rights. >> it is more than $2 million per episode for "the sopranos." only $300,000 per episode for friends on tbs. sorry to say. >> the cost is it is about $1.5 million or in that range. a lot of syndicated shows you .et 100 episodes watch 12 days of every single repeat. >> nerd simpson guys.

what is your favorite episode? >> i like a crossover episode which is not my favorite episode. >> i have favorite gag. when homer raps a stick of butter in a pan cake and eats it . or a space shuttle launch and everybody runs to the tv to unplug it as quickly as possible. i like monorail. i like a whole bunch. >> i have been told that you guys are both wrong by our producer. >> i like when milhouse's parents get divorced. >> we really appreciated. [laughter] olivia sterns, alix sherman is sticking with us. "market makers" will be right back. ♪

>> coming up.

how to become a millionaire in 1000 days. "getuthor of the book stuff done." it is not really stuff. my producers tell me i cannot say the s-word on cable television. stay with us. ♪

>> welcome back to "market makers." us heresherman is with this hour. is what alex and some canadians call thursday. >> that's right. what is wednesday? >> hum day. founded a social media

company and now he is finishing up his tour. the title of his new book "getting stuff done." is that really all it takes? , matt, has ad here hard time getting things done. >> i procrastinate. there is a lot of lessons in notbook but one of them is being scared of failure. it's all about taking more risks and thinking about life a little bit differently. >> you live an interesting life. you are a celebrity chef for billionaire -- yes, i am 34 although i may look a little bit older.

i have cooked for billionaires. >> how did you land that gig? >> a bit of the luck of the irish. i went to friends of friends and they have got down there and i worked my way up. time, my friends were getting on the career ladder and getting secure jobs and trying to sort themselves out financially. again, it was going away from the norm and taking some risks. >> i read it yesterday. book is one part of the that says we are often told that women have a biological clock that certainly it does not have to be like this. but doesn't it? we can't really wish away a biological clock. maybe for you, you can say you are not going to get married until 40. is it different for men and women? >> biologically, it kind of is.

certainly in ireland and europe, people tend to get married at 26 or 27. it's not a bad thing but it pigeonholes you into a certain kind of life. it is not just getting married. when you travel, like, when people finish college, they might take a year off and travel the world. everybody says it's the best year of your life. why not extend that? those of people who get to 30 and they hate their jobs. they might go back and start again or retrain. i think we are under too much pressure and a lot of our decisions are financial-based and to they shouldn't be. >> why not? at the end of the day, i want to be able to pay my bills. traveling, i still have to pay for stuff. >> one of the things i talk

about in the book -- well, i live in dublin and it is like living in new york. it's expensive. if i want to live somewhere cheaper, michael to thailand or i might go to italy. you can work remotely. i worked better being in a cheaper country and i get paid to go on a holiday. it is little hacks like that in the book that, yes, you can still build your career and have your progression. that -- ii'm a rich may pitch that. i have issues with just sheer laziness and procrastination. kind ofously are the person who is just a driven towards success. say maybe -- you can

you decided to go to the south of france and decided to chill out but you are obviously durban, -- obviously driven, yes? >> not just driven, but not being scared of failure. coming to america is sort of refreshing because you get embrace failure. not the rest of the world. failure is quite front upon in other parts. >> didn't you plan another trip you are? >> tell us about your book tour. >> normally, your publisher says let's go to a few cities across america and we will sit down and read. but there are dozens of books out there. social media, we arrived in washington with no plan and we visited l.a. las vegas, los angeles. we had no plans to be on the show. >> but it happened>> you wanted to be on "the daily show," didn't you? >> they are on vacation so we

may have to come back. >> one thing you say in the book as there is no such thing as luck. tell a story of trying to sell your company, not being able to make a roll and then having payment command in the second to last day. so isn't there some element of luck? the more youbut are willing to take risks, the luck will come. it's like people who sit and play the lottery every week. >> it was good to meet you. good luck on your book tour. >> i think it is a little pedantic to drop words from our vocabulary because some people -- you don't always need a great

win or loss record to win this title.

>> there have been a lot of deals in sports. sold recently and the l.a. dodgers as well. what is the most valuable franchise in u.s. sports? it's the dallas cowboys according to "forbes magazine" with a value of $2.4 billion. i have to say $3.2 billion surprises me as a low. if the l.a. clippers are going for $2 billion, a basketball team i admit not having heard

about until they're racist owner was caught on tape, then the cowboys and the yankees surely must be worth twice that. >> well, yes and no. you've got beachfront happy in l.a., literally and figuratively. it is a number of billionaires in the market for a trophy asset. would there be that kind of global turmoil if the cowboys went on sale? maybe, maybe not. but l.a. was a special situation conditions.pecial yankees, 27 world championships, the greatest a small team of all-time. >> it's a valid point. the cowboys went up almost 40%. the clippers deal isn't going to hurt the value of sports franchises. it is a different -- it is a decent play. if you look at the next and the

rangers. if you can own the venue, the team, and the media, that is what you really want. if you are in the nfl, you have to share that national revenue. they have more money coming through digital. the nfl is king of content right now. they seem to find more revenue with creating no new product. they sold a thursday night package who sold cbs and others that we will just sell something that we have on nfl network right now. it is not anything new. they areasked -- asking people to pay for playing at the super bowl. have anhese artists album coming out at the time.

the publicity of people worldwide seeing you sing helps your sales. >> even if it is a horrible performance and an inevitable medley. >> what is interesting the nfl has two teams under a billion dollars. the bills, which are currently for sale, and the st. louis rams, which are often rumored to potentially -- will they moved to los angeles were somewhere else? if you look at the leak -- the league, maybe they would be better off in a different venue. if you are an investor, you think i can move that team. there are a lot of political things going on. >> here is your big play with the nfl. are you restricted to the u.s. audience or will you become more like the nba and really grab a global audience? there will be a team in london at some point. the opinions differ. >> an nfl team in london?

the jaguars have been playing a lot of. >> the experts i talked to differ on whether it will succeed. it won't just be london's team. from the nfl perspective, it will be europe's team. now you are talking about a global market. if you are stuck in the u.s. market, i'm not sure about the long-term growth of the nfl. >> you talk about billionaires into buying these teams. what about corporate ownership? >> we have seen corporate ownership getting in the way of the teens. let's trim back on the spending of the football team because this is happening. >> and it may continue to happen as best in other sports. we have bud selig, the

commissioner, retiring. aseball has been historically club, a private club, or sometimes the highest did doesn't necessarily win the eventual ownership of the team which has to frustrate sellers because you need to get a signoff from the commissioner. >> obviously, that is what basketball is like as well. usually, if you say something in the privacy of your own home and someone secretly rafe -- jiggly records it, you cannot be forced to sell it. >> look at the special circumstances. andhave donald sterling creating a frenzy around the product. , everything was preapproved, he had nothing to say at the end.

this.id i have to look at is preapprovedis bidders. you have no say in this. let's see what happens with the buffalo bills. let's see what number they come up with. >> right, sports franchises are sold mainly for three reasons, criminal activity, divorce, death. will we see moving forward owners saying that these meteorites have gotten so -- these media rights have gotten so expensive, i am going to sell it for the profit. "market makers" will be back in just one moment.

clip" is coming up at the top of the hour.

>> let's have a little fun, a little trivia. , remember last year what happened that day? >> you told us in the commercial. >> ben bernanke, that is when he went in front of congress and first mentioned the t word. difference a year makes. you say taper 15 months ago and markets panic. yesterday, the fed suggested that they would effectively start pulling back. and the markets rally. like you said, everyone knows it's happening. everyone thinks that janet yellen is super dovish. she can only get more hawkish.

when she doesn't, things go up. >> and the economy is a much different place. >> i would look at gold. back in the taper tantrum day, we were looking at gold at $1400. now it is at $1200. >> does anyone buy gold anymore? >> some people do. he once told me, if we both had a girlfriend and i give my helfriend a copper ring and gives his girlfriend a gold stickse will see who's around for longer. [laughter] >> and moved to thailand. willork's attorney general be joining trish regan at 12:30 to talk about this bank of america settlement.

i didn't realize the total money paid by bank of america over the past several years will jump to $72 billion. >> it makes you wonder if the government wants to hamper america's biggest banks. >> we will answer that question at 12:30 with trish regan. we will be right back.

our specialto thank guest for the hour, alex

sherman, and i want to get a final word from you. >> my final word is condolences to jim foley's family and his friends. i was his roommate for about four months. he is a great person. he got a lot of publicity. i am going to write something for bloomberg later today. that is a tragedy that's happened and we hope all the best for the people who were close to him. go outourse, our hearts to his family and to all the journalists in captivity and the journalists who are working over there, putting themselves in harm's way. to shed some light on some pretty dark things. >> it's a different type of reporting from the stuff we do. >> it absolutely is. apologies for your loss as well. >> thank you. >> bloomberg television is "on the markets." way are talking straight into

derivatives because it is time for today's options insight. joining me is scott bauer. he joins us now. the data within a hundred points of a new record. what are you seeing in the market that suggest this may continue? >> was volatility the way it is, there is upside. protection, put buying to protect a the downside, but people call to the upside pretty much across the. >> board>> how expensive is protection? >> you look at the vix and it is highng in the mid-11's, 11's. as a longer-term play, meaning two or three

months out because that is actually protection against an entire portfolio. in two orvix rises three months, that means there will be a bit of pressure in the overall market. it is a great hedge against the overall market. >> do you see any of that happening right now. >> you look at the open interest in the september/october expiration, you are looking at strikes from 15 to 20. massive open interest, lots of call buying. >> lots of call buying is the theme right now. this morning, the u.s. attorney general announced a record $16.7 billion settlement with bank of america over faulty mortgage sales. what kind of activity do you see on be of a options -- on b of a options. >> it is quiet. very little reaction. over the long haul, that number

is eclipsing nearly 70 elliott dollars yet the stock is hang -- 70 billion dollars yet the stock is hanging in there. given the fact that they can withstand this or take the hit for the next quarter, i think inc. of america will be one of the financial leaders going forward in the coming years. >> do you see any options activity that suggests others are on board with that idea? >> the option activity is quite neutral. you have earnings in bank of america coming up the first week of september. nothing really out of the ordinary. >> we will keep an i am ellen. -- we will keep an i on that one. strategy has to do with the fact that the stock can't break out of its range right now. >> you are right. you look at the stock and it is almost impossible to break out

of the 15-day/20-day moving average. i think there is so much increased pressure in that space that their margins will be decreased. the weekly 56/53 puts that expire tomorrow. i am looking for the drops on the downside. >> thank you.

. . >> welcome to "money clip was quote where we tied together the best stories and videos and interviews. today's rundown -- in the world, we will go to crude city and show you how the militant insurgency is transforming the iraqi city of peter cook. the fed climbs the mountain of the great recession as a gets ready for a summit in the tee time. finallyeider minute is running a victory lap that only took five years. problem -- turns out it began a long time before this