up by 1.6 percent. again, something i am very excited about but probably a lot of americans are not because they have taken european holidays already for the summer, the euro has fallen. usnk you so much for joining . market makers is up next. ♪ >> good morning. you're watching market makers on bloomberg television. stephanie ruhle is at the bloomberg sports business summit here in manhattan with fantastic interviews coming up over the next couple of hours. nba commissioner adam silver is among them. who will soon become his biggest antagonist, ahead of the nba players community michelle roberts. to look forward to.

in the meantime, we have the latest economic data. the latest of the services economy. scarlet fu in the newsroom. like services industry. i have some jumping unexpectedly to 59.6. looking for a read of 59.7, which would have marked a decline from the previous month. if the 9.6. so this read of 59.7 is the since august 2005. it looks like the service industry is expanding at the fastest pace in nine years. when it comes to market impact, not much of one. higher in terms of equity prices.

jobless claims coming in right where economist had been looking for. >> if we add that to the highest some data we had a couple of days ago, it does suggest -- what it tells us that the economy is performing better than an economist expected it would. what we don't know in the market is not telling us is whether it is performing better than it investors expected. -- better than it investors expected. usually marks the lines on whether we are expanding or contracting. very much expanding and the latest reads are expecting -- expanding faster. >> meantime, the ecb taking more steps to jolt the european economy out of its slump. is a surprise the markets with a rate cut, driving the euro below 1.34 the first time in more than a year.

mario draghi made more headlines, pledging to increase the balance sheet. skied johnson with us from london to explain. >> what we got today was a number. the cuts are as zero. we will know more. we got the asset-backed security. kind of a twin track strategy. they will be back like covered bonds as well. details of that and october. mario draghi describing it as complex as the ecb will be doing here. we still do not know the size and scale of the operation. what is interesting is they are including mortgage-backed security in this demo which will probably about the ecb to sue's -- to significantly increase the balance sheet. the availability fairly limited on this side of the pond.

included, but we will have to wait until october before we get final details of what this waltz milly look like. rex is this what mario draghi promised us in his speech at jackson hole? >> possibly i think. let me hedge my bets. full-blown quantitative easing. this is what the market would describe a little bit different. quite -- credit easing, not quantitative easing. is, doing qe, buying bonds on the side of the atlantic is significantly more difficult than it is in the united states. a series of countries, bond to dealthat you have with. maybe this is a way of providing more credit for the european economy by circumnavigating the thinking channel and allowing

europe to grow a little bit more without having to grow them -- good on the highly politicized wrote. maybe people push higher on the program so we have to do a little less on the quantitative easing program, which could still be somewhere out there in the euro zone. >> as you point out, not so easy for the ecb to follow what the fed has done. mario draghi still trying to force the european economy through the transmission mechanism of the banking system. i noticed the ecb cut the deposit rate further, trying to penalize banks for holding reserves. >> get out there and land. things have to hold capital against some of the trounces of loans. we are going through the stress tests over the next few months. what -- ofrcel of this is what we're talking

about. trying to make it easier. this will allow them to lend more into the real economy for the small and medium-sized companies. a big step forward for the ecb. >> thank you for the date and explanation. i mentioned earlier stephanie is down at the bloomberg sports business summit with a terrific lineup of interviews. right now two of the top agents in the sports business. indeed i do. michael michael, walk us through mysteryion, a media around the marriage for the past year and a half. how's that -- how does it work? >> it has worked out as a very happy marriage. the two of us are lucky to be thatof dynamic companies have complementary skill sets with overlapping relationships

that we had pre-existing, and when rock nation came with us to help with the entry into sports, we were thrilled. it has been an incredible 18 months. a lot of successes in a short amount of time and we are really as optimistic about the future as we could be. >> to help us understand the business atmosphere athletes have talked about. everyone talking about kevin durant. $300 million for a studio. >> 350 million, but who is counting when you get to those numbers? of whether it makes sense, it was a statement harder shift that nike created since day one. he is a happy camper this morning. it was a long journey for us. under armour was in the thick of it. we were not quite sure where it was going to end.

we are happy nike has come back and created a long-term partnership. bar in terms the of industry. andt seems every athlete musician today wants to be a brand. a sunglass line. >> i think it has raised the bar from a financial perspective and has also heightened the awareness of opportunities athletes can create for themselves off the court and off the field. -- has renewedve partnerships with nike. we have added three or four earners to his portfolio. that is what athletes want, to build the brand away from the field. they are thinking long-term, which is a good lot process. >> have you seen an explosion and business partnerships? when you started, athletes just wanted to play games.

>> i think michael jordan took the industry to a new level and we have seen it evolve. we were talking about the direct andection between fans consumers and athletes and celebrities based on the connection and social media. i think that will take corporate partnerships to a new level. i think as we saw during the week's surrounding the kevin , fans werethon engaged. they wanted to know, he is going under armour come a will nike match? kevin's products. that is what drove the price. i think as long as consumers are wewering with pocket books, will see companies continue to use celebrity endorsement as a tool. >> do you think it is difficult or are we living in a whole new world where this is a new way of living or just part of a cycle that will phase out? >> we hope it is not just part

of a cycle. there are lots of opportunities. we also have to be careful. we also know the sports business is cyclical. we have to take advantage of the growth opportunity right now. grab everything we can and keep our fingers crossed it continues for the next 10 or 15 years. >> today the you consider the sports business to be more entertaining than ever? the fact that teens are more about media deals today more than ever. >> i think sports has been a big media - winner in the landscape. it is must-see entertainment. all of the institutions and athletes and participants have benefited from that. i think the passion that exists

for sports similar to those that existed music is going to drive marketers needs and interests. so i do not think that will change. i think both companies are fortunate to be in this world of the entire trend. >> when an athlete comes to you today, what do they want most? >> a are looking for opportunities, branding. they want things away from the field, will whether it is skyler evans, kevin durant -- they are all looking for the same thing. all around opportunities. to drive.at we try secondly, looking for us to take care of everything beyond the field. they do not want to be concerned with the exception of getting up and performing at their very best. what rock nation does really well is to create a 360 service component of round each one of our clients whether it is an

artist or athletes so they do not have to worry about anything but performing at their very best each and every day. servicee a organization. for us, every athlete is different. i think we represent somewhere in the neighborhood of 1000 clients that run the gambit of needs. i think the way we're set up is to service the needs, regardless of what they are. if they are on the offensive line of the minnesota vikings, their needs might be different than if they or someone with a range of interests like shaun white or carmelo anthony. i think we have done a heckuva job over a long amount of time servicing athletes at all ends of the spectrum. we do so with resources that 1400 people bring to bear as the agency and do so with the personal care of a small boutique shop. likeve you taken athlete shaun white and partner them

with go pro, one of the most interesting ipos of this year. >> i think shaun white is someone we can all learn from. an incredible entrepreneur and has added 10-20 year career of delivering for corporate partners. deal is an example of how he has been able to utilize his leadership position into sports and match that with a product made to enable those to highlightetes his product and has been a win-win. i think the ceo deserves credit for recognizing what sean could do early on and shawn deserves credit for recognizing how strong it was for his audience and athletic -- athletes like him. that is the relationship that becomes a win-win. >> when you

look at an athlete like file -- skylar diggins. clearly a small business with a small audience. how do you take a woman like that and make her an american brand name? >> all about developing a brand from the grassroots. he spent a lot of time getting her on the covers of magazines, educating people about who she was off the court. she is a dynamic personality and healthn, fitness and dropdead gorgeous. i was with her yesterday and i am still amazed by how beautiful she is. we want to employ those interests and educate america on who she really was. we have done a fabulous job of that and now we have created opportunities in corporate america. she is working with nike, sprint and other brands. >> brand name athlete, is their face worth more than their dollars?

are they worth more than money? influencer,ike any the smart athletes are able to cachet that their celebrity brings to an organization and elevate their own opportunity, but really ring things to the company that a normal executive could not. i think we will see more and more of that. i think athletes are interested in building businesses. emulating what jay-z has done and you are seeing more and more of the succeed in this endeavor. i think that trend will continue. >> congratulations. thank you for joining us. the0 minutes, coming off summer of sterling, we will be joined by commissioner adam silver. much moree says, so coming from the bloomberg sports business summit when we return

from the break. president obama and the rest of nato are skeptical and questioning the credibility of the russian peace plan for ukraine. more on the meeting when we return. ♪

>> through -- breaking news related to bp. u.s. district court finding bp grossly negligent and the two thousand four gulf of mexico oil spill, indicating fines may rise. this is actually an enormous deal. this means the company acted with willful war -- will for or wanton misconduct or reckless indifference. what that means for bp is depending on what the judge was, for how big this bill perould reach up to $4300 barrel released. you are looking at a stop chart

down almost three percent on the news. the total cost could be something like $17 billion based released in barrels the gulf of mexico at the high end fine of $4300. ep found grossly negligent in the 2010 oil spill, meaning was reckless and conduct. already related to the clean water act. bp has taken at $3.5 billion charge. if it does come in at 17 billion, it would be an enormous increase of what bp was expecting which is why you're seeing shares fall. many analysts expect bp to fight this, saying they are definitely negligence. >> meantime, if you are confused by the cease-fire or not, join the club. yesterday he said they had

,greed on a cease-fire, then much backtracking and not to mention conflicting information from the russian side. declare a ready to cease-fire if talks are held tomorrow. to sort us out here. like you said, it is a bit confusing. we have the ukrainian president announcing we had reached a permanent cease-fire and then he took out the word permanent cease-fire and then the russian president said they agreed and then the russian president said they could not agree because russia is not party to the conflict, despite the fact nato says russia has increased the number of troops it has from 1000 two well over 3000. that is where the confusion comes from. today the ukrainian president said if those peace talks go

would beand it tomorrow morning presumably in the capital of belarus, between the security organization, then he is with ad to go ahead cease-fire. meanwhile, rebels are saying the same thing. , thee end of the day, nato united states and many of the western european countries are deeply skeptical of the russian president's true intention. >> what does his presence at a nato summit's signal to vladimir putin? it is just a way for nato to say we are there. really is here seemingly everywhere. obviously ukraine is not in nato but the ukrainian president even found a way to make his way into

the family photograph. two things are really important right now that are being decided south wales. one is those sanctioned by the european union of the eu has been working on should they go forward. the eu gave a deadline of tomorrow to introduce the new sanctions. when we got all that talk yesterday, and people got hopeful and we saw stocks to really well. the word now is the sense and town is in fact those sanctions should go forward and he met president obama and the british prime minister. the italian prime minister, the german chancellor a short while ago. i just got a read from the white house and the feeling -- i was going to say, doesn't that further in time denies vladimir putin? whatse nato appears to be

he is most concerned about. yesterday he was in estonia saying that if russia were to invade the baltic states, nato would be there and the u.s. military would be there and now he lines up with the nato leaders for the family photograph? >> yes. ultimately this is about nato. the whole reason we have russian forces or russia involved in ukraine is because they are ancerned ukraine could become nato country. at least the russian president has said as much more than a couple of now -- couple of times now. we have been told by several government officials both present and former it is the russian president intention to stay in the east of the country until they have effectively pseudo-states that

would be buffers between russia and the federal government in ukraine that would have autonomy, enough that they could veto any decision from the ukrainian federal government to join nato. that is ultimately what this is all about and certainly antagonizes the russian president. from the ukrainian president perspective, he does not have any other choices. >> we look forward to more reporting from you. the chilcote in wales for two-day summit. now we welcome the director of russian studies at the woodrow wilson center. practiced international law in moscow and washington advising multinational companies on investment and business in russia. why don't we begin with nato. a big deal to vladimir putin and russians in general. west dog people in the not really understand. >> i think one of the reasons

that has led to the action in theine was the decision in 1990's and early 2000's to expand nato. he said there was a deal between corporate trough and reagan and that there would not be an expansion to russia's border ,hat did occur, and therefore it really does not trust nato when it says it is not -- interested in gauging with russia. >> if he does not trust nato, what kind of confidence, if any, we have to assume there is some trust to engage in the peace talks. if he does not trust nato, how can he trust him given the fact that he is at the nato summit lining up for the photograph with the rest of the nato leaders? >> there has to be some sort of deal in eastern ukraine.

the only deal he can deal with is the elected president of ukraine. i agree that where this is heading is some sort of stateless arrangement where the eastern province somehow becomes a frozen complex not really ruled by ukraine or russia and that will be the end game that these negotiations will lead to. a cease-fire but an indeterminate ending that will create instability in ukraine, which i should add is one of the objectives is -- of president clinton. successful and there is instability, how should the west react? what should president obama, prime minister cameron and other eu leaders do? >> if it becomes a further conflict and ceases to be a military conflict then i think

the primary goal is to rebuild ukraine, whatever is left. >> substantial but significantly less powerful on economic terms country. from what i understand, there's quite a bit of industry in ukraine. >> they would lose a big part of the industrial base him and that would be a problem. reformally it cannot economically and conduct a war. that is what the dilemma is. it has been interesting to hear him talk about the need for a cease-fire over the past 24 hours because he has begun to change his tune. i think one of the reasons why he has done so is he realizes if he is ever able to address the domestic problem, that he cannot war for an wage indeterminate amount of time. >> what happens on the other side?

what other actions might he take to respond to economic sanctions in place and those that might be put in place for what ryan was just telling us from wales? believe the russian government was behind the cyber attack on jpmorgan, and white -- might we see more on that? >> i am not sure to what extent you will be able to prove he was behind the cyberattacks. what i think you will be able to prove russia was doing was trying to cut off some of his contacts with western institutions and try to essentially go it alone. you have seen this with an attitude toward credit card and demand and they create their own credit card system. swift,s discussion about the electronic payment system and electronic payment system for russia itself. youhat i think you see, and saw that in sanctions. that by limiting the import of foods from europe, somehow that

will spur production inside of russia. you see ishink increasing action by russia to isolate the russian economy. it cannot completely separate its self but and a creasing attempt to isolate their own institutions and own economic paradigm that somehow is not directly linked to the west. >> to your point, visa and mastercard are ready faces difficult decisions about russia him about what do other countries do? if you were advising, what would you be telling them? >> i think you always tell them to keep their heads down. increasinglying difficult. i think you have seen that over the past few weeks with the investigations of mcdonald's, a one in russia. essentially closed down for

suppose it health violations. i think the best thing you can do as a western company is keep your head down and continue to pursue the market the best you can but it has become uncertain and part because of u.s. sanctions in part because of russian action and how it is trying to deal with its own internal and political economic situation. lex thank you very much. good to see you. we appreciate you sharing the insight. olsson center with us from washington. heading back to the sports business some but -- summit where stephanie and cory johnson are there. >> we are here with adam silver. i do not think there has ever that hasmmissioner went through what you went through in the past year. >> talk about what this has been like. >> so much credit goes to david

stern stewart had to work for before i came commissioner. this is my sixth job at the nba so i had experienced so much at his side and watched how he handled so many different crises that confronted the league. i have been inside the boardroom listening to experts. i felt i was as prepared as anyone could have been for the situation. every situation is unique. >> are you compared to have steve ballmer as part of the fraternity? >> there was the situation with the situation with owners that was more of a partnership. it was not always the commissioner. it was a different time. with steve, i have watched a lot of those few tombs. i think it is right up there

with you to rally. so international is something talk a lot about. maybe only soccer is an international sport. what are you doing in terms of expectations to build the business? >> one of the things we are doing is we're are selling media rights throughout the world. roughly three weeks ago celebrating the 30th anniversary. chinese central television. we have been on the air with them forever. we have 20 other deals in china. other digitaln deals. it is mainly a media business in the sponsorship is best, a marketing business in which companies want to associate for the nba, and on top of that in discussions with the chinese

basketball association with partnering with them on their build and helping them their lead to -- take their lead to the next level. .> we see marquise player what does that do for a leak, the big names not just wanting to go to superstar cities? >> we have always been jealous of the nfl. any given sunday. if you ask people they will watch the super bowl, they say absolutely. historically if you ask people if they would watch the nba finals, they would say who is planning? we want to get to the point where they are all competing for a championship. i think we're beginning to see teamsn the league with like oklahoma and san antonio spurs. that is what you want if you are a commissioner.

you want all of your teams to be competitive and you want them to not faith for management who has the deepest pockets. the deal for the clippers got a lot of attention but the deal for the box and kings am a those are big numbers, too. talking about how those owners thered there was of value at that cost. that market and look at the opportunities there. panels, athe earlier principal in the soccer month -- sacramento kings. the greatest deal is the least expensive nba franchise. job to make sure it is right. i really believe that. that a large part of the value is buying a small market team in

the united states. that you do have one 30th of china and india and africa and the entire world. >> we are talking so much about the media rights. to are franchise is going continue to get people into these arenas when it is all about live events on tv right now? >> i give our owners so much credit. i know another league talked about how great the experience is. that has not been the case in the nba. our attendance has gone up and up for the past decade. in part because an arena sport is creatingit special vip experiences or special entrances or opportunities like new york, steak -- philly cheese and if you go to a 76ers game,

they have the food special, had done a great job creating more clubs and lounges. i think for a lot of fans as opposed to going to a club or sports bar, they are saying let's go to the arena -- there are is so much fun to be had there. >> owners are very different now than they were even 10 years ago. is there one owner that stands i think in a lot of pupils eyes mark cuban has become the modern owner. i gave -- i give him credit because when he came into the business he made it cool to be upfront and visible. reallyo that there was a reputation. was not cool to jump up and down. i think once he demonstrated it was ok to be a super fan and the fans wanted to see he was losing as much sleep as they were, i think other owners who really wanted to be like that but for

whatever reason did not think that is how you were supposed to act saw his mark is to it and is successful, that is what i want to be liked. i think there were a lot of owners who came in after mark cuban and said i think he is doing it the right way because he is so energized and passionate about his team. >> isn't going to make your job harder now that the steam owners are some of the shrewdest guys in the business world? >> opposite, makes my guy -- job so much easier. >> i wonder what surprises you have seen in the international business? challenge the biggest is the time zone difference. differenthly 12 hours from the east coast. you have to figure out whether we need to create new products, condensed games.

i think that is part of the biggest challenge. ultimately whether we should consider timeshifting some americans. not so crazy to ask a team every few months to play a saturday morning game. maybe when the audience get taken off in china and you are reaching 100 million people in china to say maybe once in a while a team will play at 10:00 saturday morning. we are not there yet but i am watching the market closely. make a prediction. who will we see in the nba finals? >> you know i cannot tell you that. are a great franchise. >> good luck. have a great season. thank you. back to you. >> ♪

>> welcome back to a very special edition of "market makers." i am stephanie ruhle live with sportscial bloomberg summit addition. i am here with the entertainment business. we are talking about the business of sport's today. a few years ago you were the key man in dealing with the dodgers sale. we just saw the clip for sale.

they do not own the same arena. i lousy tv deal. sense?the numbers make >> part of it is what the market will bear. a great market with a lot of opportunity. a whole new team on the floor. and media contract coming up. i think he will are seeing the rising value of sports teams. i don't know if you can really justify mathematically $2 billion for the clippers per se. big.pportunity is the nba is doing very well. does the clipper deal mean for other team valuation. >> i think it helps. aspirationalery price for other teams. had ever thought so.

that have evers year continually increased in value. depending on your investment horizon, you could make a lot of money. >> is it just because there is only a finite number teams in each league. soldat the price tag it for. >> there is definitely a scarcity value and becomes even more scarce when you get into the top five markets in the united states or around the world but the business has also radically changed. there are many more ways to modify the team than ever before. estate andeal sponsorships and global presence of social media, online and entertainment. you name it, so many platforms to go in make money with the great content businesses. >> are we over hyping the value? we talked all about the media opportunity and time warner is

taking a bath with that right now. >> but the dodgers aren't. loses.guy wins, one guy >> i think what is happening with the dodgers is a lifelong andion between distributors romance -- programmers and two will pay how much for what is always a big question. if you see espn is out there charging an exorbitant rate for espn network, now you have these other regional sports networks very expensive but also the most valuable content out there. absolutely a differentiator for communities and distributor. something you have to have. we will see what the market will bear. solved athat will get some point. >> if the comcast and time warner merger goes through, what does that mean for the

entertainment marketplace? >> i think there are pros and cons to everything. maybe morewill be difficult for the programmers that have a much larger distributor partner they have to negotiate with so there is a change in leverage dynamic there. i think it could be quite good for consumers in prices will go up but i think it also will be very good for consumers because they will bring a lot more technology and scale of the business to drive the cost down for a lot of the things you and i like to use. so i think it will be fun. see the value to of the media tow or go down, what will be the financial driver? right now all we talk about is media, media. >> i think it depends how you define media. it used to be just television.

now it is online line. all whole new platform where you can monetize the rights. beyears we may not all watching sports. we may watch on our tablets, tv. there will be something out there that is different than television but the rights owners will get paid anyway. the content is still there. gettingyou may not be paid a lot of money to broadcast games on television but you will still get paid a lot of money to broadcast games on whatever the new platform happens to be. >> why have we seen such a change for you? yorked to be storied new families and now some of the savviest business guys from the financial industry. why such a change? >> these are fun assets, no question about it, and it is great to be the man or woman in the community that owns the

clippers and yankees. i said before, i think what is different now is there are so many more ways to monetize businesses. while they used to be hobbies for a lot of people, now their businesses, and i think that is driving value and changing the complexion of the ownership groups out there. >> how much more sophisticated are these athletes? user no longer guys that lace up speed -- makers and get on the court. they wanted on a piece of everything they touch. lex i think it depends on the athletes. there is more money in the pot for everybody. really think of their own careers in the business. that the love sad of the game is not the true theyr of all of this but

have a finite career and they need to maximize what they have at that moment in time. so they look at their own careers as a business now and it is very cut and dried. >> thank you for joining us. head of media and entertainment at blackstone joining me live at the bloomberg link business sports summit. >> terrific stuff. i know you have more coming next hour. right here from our headquarters, time or newsfeed. private sales climbed less than forecast last month. 200-4000 jobs in august. the government comes out with its august jobs report tomorrow. the state of nevada will be the battery $5esla motor billion gigahertz factory. this is according to people familiar with the matter. an announcement due later today. it will create 6500 jobs.

the u.s. trade deficit unexpectedly shrank in july. falling to the lowest level in six months. export header record because of growing demand for american cars and petroleum products. right now we are approaching the end of the hour. time for bloomberg to take you on the markets. olivia sterns is here to help me look at the reaction in response to the ecb decision. u.s. stocks at of record. withrio draghi coming out a big one. we thought we had seen the big surprise he was going to give us back in june when he took the overnight rate to negative territory. now he has done it again and pushed overnight rates further. next 10 rising thanks for putting money on deposit. >> i had to pay to cash -- --

cash with you. cut all three benchmark rates. that was a surprise, predicted by only a handful of economists. the other big news is fast setback security program. finally put meat on the bones of what that will look like. he is saying it will significantly boost the ecb balance sheet. he said he is comfortable with the balance sheet being back up to 2012 levels. and it will be a simple program with covered bond purchases that will start in october. really looks like a stepping stone, a stopgap before more powerful stimulus measures before the full-fledged quantitative easing we are all waiting for. has no otherhi options, does he? germans will and act -- let them

stimulus and the italians do not seem willing to undertake policy reform. >> i do not anymore for the the samed germans in category. >> the italians are moving forward. >> even with france they have a new prime minister that is a former investment banker from rothschild who in the past week has raised the prospect of slashing the 35 hour work week. so that is interesting to see. the problem is the national governments are not doing anything. that eurozoned will become japan in the 1990's. gdp growth zero percent for the in august.nflation less than a quarter of what the ecb is looking for. very much alive. unemployment in double digit. unemployment taking up the past year.

lex talking more about what mario draghi said and did not say. first of all, not quantitative easing. >> no, it is not connotative easing. one of the most interesting questions was what do you define as quantitative easing because this is directly purchasing assets so should technically be quantitative easing. he is holding out on the big bazooka. he was also asked about whether the decision was unanimous. >> quantitative easing was discussed. there were some of the council members where and favor -- that were in favor of doing more and some were in favor of giving less. so our proposal tracks the mid-road. >> though some members on the

governing board council work even more dovish. he also said the risk to the downside has picked up. he revised down the forecast for growth in the eurozone zone to less than one percent. he revised down next year's forecast. 2016 he bumped up. they be he is thinking he will announce quantitative easing and will go to work. the euro has dropped below one dollar 30 cents for the first time since july of last year. lex we will not even go to europe and take advantage of that. >> we will have to wait for risky trip to france or italy come the winter. breaking, to recap news earlier this hour, bp has been found grossly negligent by an american report. big implications for the fine.

they may have to pay even more. taking you to alix steel and minister for more. found veryy bp reckless and the dealing of the bp oil spill. what we do not know yet is what it will cost bp. the judge did not rule on how much oil was spilled into the gulf of mexico. the high end could be 4300 per barrel. could be as high as $70 billion. as a result, stocks getting hit today. take a look ate, halliburton as well as transocean. halliburton provided the cement and agreed to settle one billion in sales. they were cleared of gross negligence. transocean a similar story. they owned the drilling rig and was cleared of gross negligence, huge weight off of transocean soldier -- shoulders.

>> we will be right back. ♪

live from bloomberg headquarters in new york, this is "market makers" with erik schatzker and stephanie ruhle. >> she's got game. you will hear from the first woman to head a major pro sports union. michelle roberts heads the nba players association. if you want to know with what -- what went wrong with the boston red sox this year, the ceo himself is going to explain. it is not just alibaba. on the web and china are fighting it out over the world's biggest market. you're watching "market makers." i'm erik schatzker.

you back to stephanie ruhle on the sports business summit in just a few moments. cory johnson is there, as well. it is time for the news feed. bp may face billions more in fines for the 2010 gulf of mexico oil spill. that bpral judges ruled was grossly negligent in the disaster. the company may face $17 billion more in fines. the european central bank is looking to jumpstart the european economy. the ecb unexpectedly cut benchmark rates to a record low. the bank has agreed to start buying asset-backed securities. nato is skeptical of vladimir putin's he spat -- peace plan for ukraine. that putineculation

will keep waging a shadow war to retain control over eastern ukraine. to theare going back bloomberg sports business summit. cory johnson is there if the incoming head of the nba players association, michelle roberts. the nba players association. always an interesting topic. it has got to be one of the most laborsting jobs and relations. michelle roberts joins me. you have a lot on your plate, taking over a complicated situation. what are you doing to get ready for this big job? lists., i have lists of [laughter] i am doing a lot. in addition to putting together a senior management team because we do need that, what i am planning to do is plotting out my next few months.

it includes a lot of player interaction. i will eyeball every one of our players come every one of our teams, listen to every one of our players and begin to talk about our future going forward. there will be a lot of pressing of the flesh. hat --l is to read reestablish credibility. deal that the players association have is 50% of revenues, down from 57%. it is one of the worst player deals on all of major sports. >> so i am told. that is what they have been telling me. part of what we are doing now is frankly preparing for the next cba. >> collective-bargaining agreement. >> we are beginning the process of preparing for that.

are things that did not happen well for us that the last negotiation. we don't expect to have that happen again. it will not happen again. there was a lot of additional revenue coming into the game. >> steve ballmer's $2 billion acquisition of the clippers, is there a business tax for the sale? same thing for the milwaukee bucks. new tv deals. that could happen soon as well. what does that mean for your negotiations with the actual players? >> everyone agrees that the revenue that is coming in is going to be substantial. the game is growing. the revenue pot will grow exponentially. what is a fair division of those revenues? that will be key for our negotiations going forward. i don't want to be more precise than that. we are not going to allow the

kind of loss of revenue that took place in two thousand 11 to be replicated. we are preparing for that right now. >> the labor movement in the has been toward deals. i wonder, you come at this job not having a history and labor relations. what do you think you bring to this? the leverage that a labor union has is principally, but not exclusively based in its unity. the players,s, if if the union members do not buy into the significance of the union, there is no unity and there is very little leverage. i can't speak to what happens outside of basketball. playersell you that my

are excited about where the union has gone. my players today understand the innificance of being unified preparation for the next collective-bargaining agreement. to visitn for my plan with and interact with the players is to reinforce that message that we will have the leverage and we will have the unity. , they haveof the day no place to go. they have to talk to us. there will not be perfection, but as long as we stand ultimately as one, we will have the leverage. ruling indbreaking california. players. of college that may have significant impact on nba players and their decision about when they try to join the nba. what is your take on what is the

correct minimum age for a player in the league? >> i will tell you that on september 22, when i am officially the executive director of the union, i will be in a position to tell you what the union's position is. i am not there yet. i have very strong personal opinions about that, but they are irrelevant because the union position that ultimately make a difference. i will agree with you. what is going on in the ncaa will impact what will happen on the professional side. if the ncaa continues to make it unattractive for people to play at the college level, there was only one place to go. not the professionals can keep those young people happy will be the subject of some litigation going forward. have kinds of professions to include the ncaa. they necessarily include the ncaa. we knew there were going to be

changes at the ncaa. think the league has a right or an interest in keeping players and college longer -- in college longer? the ncaa wants to keep the successful players longer. do you think the league has a reason to want to keep college kids in college? i think the league understands and has an interest in understanding how college players are compensated. they necessarily do. if they are not adequately compensated, then the pressure to let those young people play higher.eague is at the end of the day, people want to make a living. i cannot do it at the college level. they don't feel they are being treated fairly at the college level. then the question is, can we fairly and legally keep those people from coming into our

league and making money? there was a time when there was no tension. that time has ended. there is tremendous tension. i don't think the league can ignore what is going on, nor do i think the college level can ignore the potential that is up here. done is not quite making it. >> i was thrilled when the players voted for a woman to lead the union. you? >> you know, having had a chance to meet with the players, to the extent i was equivocal about whether realistically are could get this job. i'm proud to announce that my players are really quite progressive. they did not allow the fact that i was a woman to prevent them from selecting the person who they thought was right for the job.

>> interesting stuff. we wish you a lot of luck. great stuff indeed. >> thank you very much. our own cory johnson with michelle roberts at the bloomberg sports business summit. war.g up, china's web three big companies, hundreds of millions in potential customers. stick around. ♪

>> this is "market makers." i'm erik schatzker. stephanie ruhle is not here because she has been talking to some of the biggest stars in the sports world and will continue to do so. also, you just got off the phone

with a hedge fund billionaire and he spoke to you exclusively about the ecb policy moves today. on the one hand, an unexpected rate cut. also, talk of more asset purchasing. what does he have to say? >> today i am talking to all of the biggest bollards -- ballers in the industry and i just spoke to the man known for his brass balls. america's favorite bull. he listened to it mario draghi had to say and this is a direct quote from our friend, "what the ecb did today was very important . an increase in the money supply and inflation. what it all means for the market is higher equity prices and the beginning of the end of the world bond market bubble." sayingot necessarily that the bond market bubble is

going to pop today. but we see a bit of a rally here and something there. as far as the world bond market rally, he is saying what we discover mario draghi, that is the beginning of the end. just got from mario draghi, that is the beginning of the and. >> i take it he did not go into too much detail about the positions he is taking due to his view. i specifically asked him and he said, listen again to my statement. this is how i strongly feel about the markets after listening to mario draghi. if you read into what i said, clearly that is how i positioned. >> amazing stuff. you have lots of work to do at the bloomberg sports business summit. i will let you get back to that. in the meantime, it is worth reflecting on what david tepper had to say to stephanie.

michael mckee is here with some reaction. tepper has great timing and has used it to make extraordinary returns for investors in his appaloosa management hedge fund. if he is right, it is a big deal. >> if he is right, it is a big deal. you notice he followed the old rule of prognostication. you give a forecast and a time -- for a timeframe frame, but never both at the same time. beene like bill gross have predicting the end of the bond market for years and then back off. >> the bond market rally. >> the bond or kiraly. you have several problems here. there was always going to be something out there, as long as there is the ukraine, and iraq. people are going to be looking for a safe haven and that play continues. just the fed. it is not just the ecb. it is all of the central banks with their additional liquidity.

if they do not see growth pick up, they're going to go farther. that is going to further depress bond prices around the world -- yields around the world and raise prices. it may not be over yet. >> it may be over for the treasury market. it may not be over, but at some point we will see the beginning of the end of the rally, the unexpected rally that has lasted all year long. you have yields so low that it is almost impossible for them to go significantly lower at this point. people in the bond market are issuesmoney by various rather than getting into the bond market and letting prices rise. >> people in the treasury markets have been burned. yields started to drop in

january. reacting.kets are >> and it is happening. it is hard to draw an exact line between what the central banks are doing and what prices and up being. the price discovery mechanism is gone. it is hard to say that they can increase the money supply, that they can try to make that disconnect that he is talking about. mario draghi is not omnipotent. he is not like janet yellen. he does not have total control over policy because he has all these different countries. gets anywhere near going over 2%, the germans are going to get out of that game as fast as possible. it is not like we are going to see a big outbreak of inflation that is going to start raising money supply all over the world quickly. made two predictions. equity prices continue rising, in addition to this beginning of the end of the bond market rally.

in the absence of fed tightening , but with the ecb continuing to loosen policy, that may indeed play out on the equity side. >> bill gross said that yesterday and one of his newsletters. with growth so low, you cannot generate enough growth to pay off the debts of the world. the central bank has to keep rates low. that is good for equities. at this point, he does not see anything changing in the near term because we are only going to be able to get up to about 2% growth. stephanietuff from talking exclusively to david tepper. coming up, alibaba is not the only name in china's internet game. there are three major players. we will to you all about them. then we will go back to the bloomberg sports business summit. the ceo of the boston red sox. ♪

>> this is "market makers." wantsbank on wall street to code itself and the glory of the largest public offering in u.s. history, alibaba, of course. goldman sachs may have the best shot of all. alibaba has picked goldman to be its stabilization agent. bloomberg covered alibaba four years. -- for years. it should be a great job for goldman sachs, unless the ali baba ipo goes the way of the facebook ipo. it took morgan stanley more than a year to rehabilitate its reputation and clear its name theuse it turned out that

debacle that was the facebook ipo had a lot more to do with the nasdaq than anything else. but facebook was also very aggressive and priced its shares as high as possible. >> goldman is going to do a great job if they can do two things. if they can make sure that they manage the liquidity. they do not want to see a sharp dislocation. when they go back in and buy those shares priced below a certain level. accomplish those two things, you can argue they have done their job. at the end of the day, it is a win-win situation. ali baba is guaranteed a measured debut. goldman sachs is seen as the bank that has a little more prestige associated with this sort of title. >> morgan stanley should have gotten more credit for the way that it managed the facebook

share price on the chaotic trading day. he did a very good job. but it was lost. what is goingnow to happen. it is so hard to say how much a stock is going to pop. you don't know. there are so many things that play. >> mia, you know ali baba well having lived in hong kong and covered a closely. it is a company we are just about to get to know in the u.s. talk to us about the chinese internet industry because people forget it is not just ali baba. this ise forget that the biggest, most expensive battle happening on the internet right now. chinese tech companies. analysts talk about baidu, ali baba. b baidu is more of a b to

marketplace then business to consumer. >> it is all of those. you can think of it as beta beat, beat to be -- b to b, b to c, and c to c. ncent is sprawling. that -- this is the war that is being fought. there are five different battles. --ile, e-commerce, financing payment essentially, the online and off-line world, and gaming. all of those battles are being fought right now. >> thank you very much. great to have your insights on

"market makers." investing in a lender that charges 600% interest on loans. we will tell you how harvard got mixed up in all of it. one of the most storied franchises in major league sports and plays in one of the smaller stadiums. ♪

>> live from bloomberg headquarters in new york, this is "market makers. i am erik schatzker, flying semi-solo today. stephanie is down at the bloomberg sports is nice summit. back there in a few minutes. i want to talk you about payday loans, the small and unsecured credits. they have been around in america since the 18th and 19th centuries. anding continues to thrive attract surprising names for

investors. the, your investigation took you to interesting places. what you learn about lending? >> payday lending online is actually doing very well cared for the last 500 or 600 years, it has doubled to about $15 billion per year. even though it is illegal in many states. what these lenders have done is shadow banking. they say they are offshore or affiliated with a native american tribe and for that reason, these laws do not apply to them. actually, a good chunk of all the loans are done by people operating under what we call the tribal model or the offshore model. >> there is some truth to that that if that is the case they

or in the name -- the american indian tribe, they're somewhat beyond the reach of the law. >> that is not with state regulators say. ago, the manhattan district attorney had criminal charges against a group running a network of offshore payday rent -- payday lending websites. clearly, the online world of payday lending is the till -- facilitated by the internet. it as with online gambling, online poker sites, it is very difficult to establish who is behind these operations. >> yes. websites, they don't advertise, except through google area they also get a lot of their customers through tv ads

run by a different company, who then sells the names of people who then apply to whoever will bid the most to lend to them. you could operate these websites without saying who really owns them or providing much information at all area what that means is when state regulators get complaints about a website, they are often not able to figure out who runs the website. >> client -- trying to get to the guy is like walking through a house of mirrors. >> yes. there is a company, cane bay partners. it is three americans down in the u.s. virgin islands that run a whole network of these websites. these websites have been sanctioned by all sorts of different states where it they are making millions of dollars a month in these small loans. charge $150 in interest every two weeks on a $500 loan. the interest rates, 600 or 900% a year, those are crazy returns

on wall street. lucky to get 10%. >> sure. that is why payday loans have been so attractive to other criminal elements in the past. some ofcinated me about the work you did, you were able to establish how organizations like this one actually raise money to do what it is they do. >> yes. these guys had been around for several years and about a year they struck a, deal with vector capital, a very legitimate private equity firm in san francisco. they sold a chunk of their company to this private equity firm and the private equity ofm, to acquire that piece the network of payday lending websites, used money they were of harvard,behalf m.i.t., the macarthur foundation, and all sorts of other pension funds. >> wow.

it is very difficult to know exactly what is happening because of the shadowy world in which payday lending operates. it is then possible harvard unwittingly is an investor and almost in a very fourth hand way, party to a payday lending scheme. >> it is definitely profiting from these websites. they would not comment to us about it. we were told by a former employee vector that vector did not tell its investors like harvard that it had put some of their money into the payday lending business area >> what did vector have to say for itself? >> it says many -- any implication they were less than 100% honest is totally not true. think you could describe it in a pretty general way, without saying payday lending.

>> payday lending websites, it is difficult to know who is actually making the loans, or at least difficult to establish. >> right. it says it is a consulting firm that only provide services to --panies that are in these those companies are anonymous and you cannot tell who owns them. employees, former employees, told me everything was run out of the offices and if somebody different on the company is believes they never came by the office nor were they ever spoken about. >> fascinating. you know a few things about it. having gone to investigate. >> that is true. i wanted to do a return visit. he said we -- he really thought we had be littered -- belittled his country in the last segment. >> thank you very much. great to see you. fascinated stuff.

of his investigation are on bloomberg.com. we will be back in two minutes. ♪

>> you have probably noticed there are big rights movements in financial markets today. stocks here in america at a to signsanks in part of more stimulus in the ecb, including an expected rate cut. for different reasons, oil is down more than one dollar and 30 cents. tensions easing to a degree over ukraine, the possibility of some kind of cease-fire or peace peace talks may begin as early as tomorrow.

a department of energy data showed inventories unexpectedly rose. has more for us. you are taking a close look at this. >> eating a former oil trader, i cannot help myself when i see oil move. today who looked back at what happened when oil falls over six months. is good for consumer stocks. we crunched a few numbers and verify them ourselves. he is right, there is a clear benefit to consumer stocks. we figured out which may benefit the most and where estimates are already starting to rise. that is the subject today. we will zero in on the consumer. >> can i remind everybody what goes into it? extraordinary artwork. this is adam johnson's handiwork. >> i do those sketches every day and i have a lot of fun doing it. the sketches are given to the

artist's downstairs and that turns into something we will show on "lunch money." >> "money clip" starts with adam johnson at the top of the hour. right now, we're going to take you back to the bloomberg sports business summit after this short break. the ceo of the boston red sox will explain my hat -- why it has been no fun this year. ♪

>> welcome back to a very special edition. i am live at the bloomberg business sports summit. larry is the ceo of the boston red sox. welcome, larry. ago, i went to the soccer game.

a great night for the red sox. talk about what the key to resiliency is. 2013, you had a big comeback season. >> we did in 2013. the third world series we have one in 10 years. we should be counting our blessings this year. this year has not done very well. i will have to adjusted it to be more politically correct, but the fact is a lot of things went right in the last year have not gone as well this year. a lot of it is the unpredictability of baseball, the nature of the game is very hard to calculate precisely. there is a lot of randomness which takes place. weareer year last year and have young players projected to be much more effective than impactful and that did not

happen. a lot of things have not gone as planned. 2015 and to be back in have already made major steps. >> what the red sox always have is fantastic and loyal fans. let's talk about what you did. we are talking today about the stadium of the future. you made the stadium of the future by embracing one of the past, built in 1912. why? >> when john, henry, tom warner, and i, came and acquired the red sox at the end of 2001, we had all been in baseball for a while. we had a sense of reverence and respect and in history. there was a wave of new ballparks that really started in baltimore. its progeny when all over the country. the fact is, boston was unique and fenway park was unique.

groups vyingf the to acquire red sox, we were the only group to preserve, protect, enhance, improve, and expand. we have got a respect for its position in the game and its appealability to fans. there is probably a little bit of recognition as well. stadium, howuild a do you build the community, respect, and love? people have loved fenway for generations. when you go out to the stadium and build an arena, how do you build a love around it? >> you don't. make sure there is plenty of time in tradition and history and generational spirits that goes into it. you can have a lot of comforts right away, but you cannot have that feeling, the spirit of the

ballpark. once it has been developed over a long time. fenway is the oldest, smallest, and most loved base ball field. karenwill only be the two of the 20th century ballparks that will remain in the future. >> it is tough to get people off their couches when you have such a great experience watching games at home. hd, on the big screen, engaging other social media outlets. get more people in? >> it is a recurring problem in boards. was just talking upstairs, discussing in cincinnati in 1937, when the owners were worried about putting games for free on the radio, if the games are free on the radio, no one will come to the ballpark. >> they still came. >> than one cable for liberated

in television, you take all the games instead of road games, the same concern is there. it is very real and particularly acute for football. baseball is more of a take me out to the ballgame game. enjoy summer days outside and socialize and stay with the ballpark experience. we have to deal with it. interactivity and data presentation will be an important part of the ballparks of the future. >> how do you get the financing to build new stadiums today? so much of it was publicly funded. the funding is not out there today. >> it has been a cyclical and long-standing approach that includes public financing. it has gone back a ways. essentially, 100% publicly financed. park, a decade later in san

diego, was a public and private partnership of roughly equal proportions. when we renovated about another decade later, it was essentially a private venture, using money generated. .t is quite different every city is different than every other city. there is not one formula that applies across the board. if there is a significant development for what you're doing, like putting a ballpark in a dead area of downtown's and aego as opposed to building football stadium in a suburb somewhere, i think the calculus changes and there is more of an interest in specifics and consequently, a greater openness. >> you have also got soccer in your portfolio. it has been a bit of a broken record over the last 10-15 years of enthusiasm coming to the u.s..

will it really stick? >> i don't know. that is another thing area in the 70's when i was in school, soccer was the game of the future. bringing there world soccer to america. it was going to be a great thing almost immediately. it has taking -- it is taking a wild but that does not mean that change will not take ways. it is a beautiful game. that, butll discover not at the expense of baseball, i don't believe very >> i am here to help build their brand. thank you so much. you.l send it back to the red sox and sports group. we will take a break. i will teach him to take medicine like a woman area >> i know you have got a lot more coming. that is the sports is this summit. we often tell you we are the global business news organization. it could not be more true than it is today. from the business of sports in america to the latest economic

and political news out of europe, there is a nato summit focused on ukraine and russia and there is a surprise rate cut from the central bank. let's take you back to the summit in wales right now. the president of the european commission, ryan. all yours. >> thank you. thank you for joining us. you becauseart with obviously, a lot of people are focused on the rate cuts and the news that of the ecb today. by asking you what you think belowthe euro falling $1.30 for the first time in a very long time, what do you think? >> no one in europe is really concerned. most people thought the euro was too strong. >> is that your opinion? >> my opinion is i should respect the independence of the central bank. i think the decision announced

today, i personally agree with it and i think it is a good decision. have very low inflation. i believe we should give all the signals to support growth in europe and the european commission has been proposing for some time that of course, we .ave to be serious public finances, but at the same time, we also need investments. all the signals given by the authorities to increase investments and support exports, to correct balances, are certainly good. >> you think the euro should go lower? since you mentioned public finances, one of the things mr. druggie was talking about was how it would be useful if government started to loosen their budgets a little bit to promote growth. do you think for example france should be given maybe some extra time to meet your budget

targets? >> we are to gave them extra time. there are rules in europe about this. we have to see if the structural effort has been done a lot and in some exceptional cases, when there is overall deterioration of the economic situation, the allow for flexibility. we have been saying that for some time, that we should use useibility provided, and more for public investments. that has been our position. i am happy that the president of ecb also expressed himself along these lines. >> let me ask you about sanctions against russia. there is a lot of confusion. there will be costamare appear the idea of the sanctions is to get the russian president to de-escalate in the ukraine. be these talks,

can you go forward with sanctions? >> this is a sit -- a decision for our government to take. on saturday, there was a to prepare aision set of additional sanctions. we have done it. they are now discussing it, what they should do with that. show and what i can tell you is, we have to still see if the cease-fire is confirmed. some of the announcements made in the past were not respected. sanctions have been and are useful. they show to the russian leadership that we cannot accept the kind of behavior they have kept until now. >> of the russian announcer tell

you on the phone when you spoke with them they would take the ukrainian capital -- ukrainian capital? >> that quote was completed out of context. from my colleagues about my contacts with president clinton, between russia and ashe him contesttin, him with president putin -- contest --\ describe, as you your biggest failure? is one thing everybody we have the most

difficult 10 years since integration. not only the financial crisis and the sovereign debt crisis. is a very serious challenge for europe what is happening in russia and ukraine. it is the most important security crisis in europe since the berlin wall. we have all these discussions about the constitutional treaty. what i can tell is the institutional crisis, we have a treaty, the financial and no one iscrisis, questioning europe. >> thank you so much. to grill your successor in the future. eric, back to you. take a timeout in the nato summit to spend time with us. >> thank you very much. ryan for us in wales.

that will do it for market makers today. fromd great stuff stephanie ruhle and cory johnson. much more all afternoon long here on bloomberg television. tomorrow, howard marks, the chairman of oaktree capital, will be here talking about his latest wisdom in financial markets. does he agree we're at the beginning of the end? we will find out. 10 minutes from now, can you believe it, carmelo anthony, from the sports business summit. i just found that out and wanted to share that with you there is raising $10 billion for a doomsday fund. money clip is next. ♪

>> welcome, where we tie together the best stories, interviews, and videos in business news. i'm adam johnson. found the world, tanks and 35's on a golf course, believe it or not. nato's big defense in the summit. that is in wales. we will take you there. in sports, carmelo anthony is making a name for himself in the world of investing. he will join us from the bloomberg sports business summit. in the nation, a wage war. protests in