>> welcome to market makers, i am stephanie ruhle. i am not in studio today. i am in midtown manhattan. it is nba all-star weekend. i am at the nba technology conference. we have a lot to cover. we have some breaking economic data. we are going to send you to headquarters where michael mckee has more. >> it has been an interesting question for the fed why did retail sales come in so badly? consumer confidence is it as high as it was. falling back to 93 point six from 98.1, analysts had forecast of a 98.1% reading unchanged.

apparently the rise in gasoline prices we have seen in the last couple of weeks may be having an effect. current conditions fall from 109.3. expectations have fallen back as well. the other number as the fed watches is inflation expectations. they have gone up to 2.8%. they suggest maybe americans experience the ideas of higher prices. it gives them a little more faith we may see prices continue to rise, inflation continue to rise. it brings them closer to trying to raise interest rates. >> thank you. it is time to take you to the top business stories from around the world. matt miller has more. >> we're looking at an all-time high for the s&p 500, breaking through 2090. the dow back above 18,000 for

the first time this year. you can see it there. mastec less than 100 points away from hitting a new record, has not happened since the tech bubble burst. we came back down a little bit. shares of the maker of candy crush are searching this morning. the company says sales of games other than candy crush has rose in the last quarter. among of them farm heroes and had rescue. president obama is hosting a conference on cyber security at stanford university. he wants to find a way for companies to share information about computer network threats. for big names declined the invitation. not sure why apple's tim cook will be there and is scheduled to speak. more misery in store for boston this weekend. the city make it -- may get

another 15 inches of snow. 70 inches in less than three weeks. they are urging boston subway system to shut down so that's so it can be removed from the rails. stephanie ruhle is standing by. >> who better to have as my copilot than our own sports superstar. >> better to have ted with us. he knows the technology side of it. there has never been a better time to be the owner of a professional sports team. i'm assuming technology distribution was all part of the reason.

>> we are in the fan engagement business. and we not only can do it now on a local basis, which is where we are responsible for owners, but on a national basis. because of the growing platform of mobile and social we have the ability to touch 3.5 ilion connected people around the planet. it is a great time for players and consumers. >> it is an insatiable appetite for your product. >> i think we are very blessed on the media landscape. live sports programming is probably the only tivo proof programming there is. we can bring together large audiences in real time because of twitter and snapchat.

it is becoming really important and there is this nice integration watching a game on television, being able to communicate, and we are big data companies. we are generating an enormous amount of data on our teams and players. and young people have this insatiable appetite to go deep on to a subject. this summit is trying to show where we are at this confluence of entertainment and sports and media and e-commerce and social aspects of communications. >> how do you think -- how much do you think the mets can go for? >> i shouldn't ever talk about another team. i think we are redefining where the value is. i grew up at the tech field.

different multiples of different segments for technology. e-commerce can trade it two times at revenues. they can trade at 10 time multiples. trading at three to four times multiples. enormous amount of reoccurring revenues. we are at 90% renewal. people are looking at sport businesses and real estate businesses. but really as technology and media businesses. >> may be the skies are the limit. >> i think the overall long-term

horizon, i do believe these are great investments. the psychic footprint we have in our communities is much greater than the actual revenue that we generate. that shows how much we can grow into the brand. i really don't dwell on it. i hope they will stay in my family for generations to come. i look at sports ownership as a way of giving back to the community. i'm sure long-term we will say this was the best investment that i made. we are making lifelong memories between mothers and sons and fathers and daughters and best

friends. and then providing our athletes with a platform to give back to the community and activate lots of charitable efforts around the community, these are real double bottom line businesses. and the transparency that you have i was actually elected mayor of my town in florida. everything we did was a matter of public record. that pales in comparison to what it is like when you own a sports team. every action that you or your players leave, the union becomes highly scrutinized. >> your predecessor -- it is one of the examples where they worked. >> i have stepped into those shoes.

i not only paid the mortgage but we paid 10% tax. we turned around the neighborhood. in that regard i would say that the city has gotten a lot of benefit from what we have built in. we are about 10% within half a mile radius of the verizon center. that neighborhood 15 years ago was pawnshops and drug dealing. it was an unsafe community and now we have the shakespeare's debt the shakespeare theater. >> why we have been named on several occasions the d.c. chamber of commerce business of the year.

we have convened in bringing 3 million people per year into that building and not only do they come but they could the restaurants and the like. it is a good deal for the city. >> how challenging as it right now not just to manage your own business but these athletes on it off the court the field, the ice? we have seen what it has done to other teams. has it gotten next harder to manage that? >> it all comes into the recruitment. i think that is very important for us because these young men they are going to college for one year and coming out. we have been blessed and having very high integrity individuals. john wall, who is our leaders he is a very high quality individual. bradley beal.

>> did you have to learn that counts? >> i understand the relationship in the locker room and the respect for the coach and staff and most importantly for the fan base. he is motivated to bring a championship back to washington dc. he deserved it. he had a very special relationship with a young woman who passed away.

i was very proud of the work he did in bonding with the community. on the hockey side we did the exact same thing. he is m.v.p. of the league, leading goalscorer. he worked very diligently with a young fan. he just donated a car to a cause that she was associated with. i tried to create a culture. the sponsors can be activated to give back to the community. we are under such scrutiny. we have such a high psychic footprint in the community. >> thank you so much.

>> will be back with more in a few. i will be sharing some of my exclusive interview with bill ackman last night. we talked fannie and freddie.

>> for some of the top headlines around the world at this hour. both sides are signaling they're willing to compromise in the greek bailout talks. greece's new prime minister met with his european counterpart in brussels. he is seeking a new contract. >> we are talking about the eventuality of striking an agreement to reach this bridge

agreement that will lead us to a new social contract with our european partners within six months. the contract for social cohesion and getting greece out of the crisis. >> they want to ease the terms of the bailout. according to officials in berlin, germany won't insist that greece live up to all the terms of the original agreement. germany's economy picked up steam in the fourth quarter. there rose 7/10 of 1%. the french economy slowed down and italy stagnated after two quarters of contraction. a slowdown in defense spending. a holding profit in 2013. the earnings will be heard by the collapse in oil prices. it is expecting fewer orders from the offshore oil and gas

industry. now back to staff at the nba tech center. >> i am here at the nba all-star tech summit today. last month i was at the boys and girls harbor. the one and only chairman and founder of pershing square, bill ackman. we talked about his current investments, companies he may look at and the future -- at in the future. he is the largest shareholder. it has clearly been a battle, but he is not afraid of the government. here is what he had to say. >> they are collectively the largest financial institution in the world. most 6 trillion in outstanding obligations. you have the housing finance

system. the government is taking 100% of the profits. these are the words -- the worst capitalized institutions in the world. >> whether they are or they are not, you have the government against you. if fannie and freddie go away so does the housing market. >> aren't you understanding the government to understand implications? why do you have any confidence? >> it is not one unified body. a lot of intelligent people work in the senate and congress. it has been my experience as an investor. we need to recapitalize fannie and freddie -- fannie and

freddie. either the government tend inject 500 billion dollars on the private sector can do it. if tomorrow the u.s. government turned off this cash flow suite this institution would recapitalize itself. 80% of that capital would eventually be owned by the taxpayer itself. it is a way for the companies to become independent without the taxpayer having to write check to rita -- without the taxpayer having to write a check. our investors will make money if fannie and freddie are restored to low capitalized institutions. the taxpayer owns 79.9% of the country -- some 9.9% of the

company. what interesting is the other 90% that we don't own is owned largely by individuals. voters. the number of people that called me, retirees from florida. these are people that call me. i own 30,000 shares of fannie and freddie. the government wiped me out. i said, call your congressman. they are more interested in what you have to say that what i have to say. 80% is already owned by the taxpayer. the other 20%, 10% to 15% is owned by hedge funds. that is a pretty important constituency there is no scenario in which hedge funds visited in reaching the expense of taxpayers. they will be very profitable. they will pay 35% corporate level tax.

80% of the equity and 30% of profits going forward. >> that was my exclusive interview with bill ackman. we are going to be speaking to another man who gets to have his dream job, john skipper, president. we are broadcasting live from the nba all-star tech summit right here in midtown manhattan.

>> after setting a new record the s&p 500 has backed away from its high. it has pared its advanced after report showed consumer confidence in february unexpectedly declined. the record high marks the first time in 2015 we have reached that milestone. in 2014 it was a common

occurrence. in 2014 the s&p 500 made 53 record highs and closed at levels 53 times. dow industrial 38 times. the nasdaq, zero. the nasdaq is moving closer to 5000, a number that traders and investors like to fixate on. it would need to gain 100 32 points from yesterday's close. at the top of the.com bubble, it would need to add 191 points, or a 3.9% advance. you get the index loading around these a couple of days. it falls back before it actually breaches. probably not going to happen today. we wanted to mention some other indexes doing the same.

the russell 1000 making a new high. it has backed off a little bit. they kept material companies as well. we will go back to the nba all-star tech summit with john skipper.

>> live from bloomberg headquarters in new york this is market makers with erik schatzker and stephanie ruhle. >> welcome back to market makers. i'm going to send you back to the studio because it is time for the top headlines. >> it looks like oil has gone over $60 per barrel. brent crude has been up for percent today. and just below $53. oil was heading for its third weekly game. the euro hasn't been on a

winning streak this long for almost a year. germany's economy reported better growth in the fourth quarter. there are signals both sides are working toward a compromise. and lift is in talks with investors to raise $253 million. all is according to people familiar with the situation. revenue rose fivefold last year. and in new jersey governor chris christie's approval rating has hit an all-time low. 42% of registered voters approve of the job republicans are doing. 10% of voters say he is ignoring his duties to boost his chances of becoming president. take you back to the nba all-star technology summit in new york where step a rule is with john sniffers.

>> as i like to see the baird who his got his green -- his dream job. what does this mean to your? >> it is mostly a lot of fun. a lot of friends come together. the best players on the game getting out there and playing a lot of offense. >> those who say sports television is in a bubble, it is going to burst. >> i think they are wrong. i don't want to characterize their mental state. they continue to appreciate. we invested the long-term value of live sports. >> i have my phone and tablets. how do you watch this stuff? >>

we produce for five hours per hour. we produce many more hours than there are in the day. i am consistently falling behind. that is why you can watch it in your smart phone. >> given to how they wanted and where they wanted. >> you are at the dinner party or in a business meeting and you want to see what the score is our catch a highlight, we want to make sure you catch that. we aren't going to take our position edge by the rights we have. continue to present them to fans wherever they want to get them. adopting technology so when new things come along they are still branded espn partnering with

social media companies and technology companies to make sure they are watching it on espn video player. they are looking on the new discovery platform. that is how we think about that. >> they tell me where we are heading is individualized advertisement. they will know who is watching. that would suggest there is still lots more money out there to be associated with the sports world. >> we think the fact that it is live and you can aggregate the audience, whereas most audiences are aggregated over 30 days makes it valuable for advertising did clearly rich data will make it more valuable for advertisers. fans identify their favorite teams, they identify their fantasy players so we can know enough things.

we can identify geography, age in order to help advertisers reach their targets more precisely. >> given all this rich data you have now, who should be targeted next? >> we are after every death -- every demographic. a new website will be about race politics and sports. that african-american audience is important to us. the female sports audience is important to us. you know we have been engaged in a high priority for u.s. hispanic fans to watch sports. we want to serve all fans. we are not anxious to exclude anybody. >> and you let the nhl go. it seems like this is an impress -- an aggressive four corners. >> we believe in the value of --

in basketball you are double-teaming me here. i'm going to see if i can handle this. >> you have a height advantage. >> i'm going to shoot over you. >> how about team valuations? we have the nets for sale. cc ballmer just stepped in, do you think there is a bubble their? >> it is like there is a bubble for real estate malibu. a very limited supply. the nba and nfl are the best most exclusive clubs in the world. the value is going to continue to appreciate. is there an effect to and its partners?

>> i think they are in the process of doing that. i think rogers made the moves with new hires and new initiatives. i don't think anybody takes those things lightly. i think fans separate the game on the field and the off field issues. the off field issues have not affected how they like the game. >> espn said it will get involved in some way. we know adam silver is proposing congress legalized -- how do you benefit? >> we benefit any there's increased interest in sports. as people have a daily game of skill they are engaged in, i hear there is some going on.

it makes them more interested in the game. >> will they be betting via espn portal? >> we are very engaged in fantasy and daily games. you won't see anybody betting on espn portal. >> it is an untapped revenue source. >> i do know the lottery was $500 million. it is counter form wagering. i actually don't know the answer to that question. it is obviously a vast pool. >> if time cap -- if time warner comcast goes through, what does that mean for espn? >> i don't think it is that profound for us. we haven't publicly commented on it particularly.

>> is that because everybody wants to watch at espn? >> we have made an available aggregation of content. that does provide us some comfort that those companies won't be espn content. >> what is the next big sports right contract? >> you mentioned the world cup of hockey. we got the european championships in 16 of european football, which we are excited about. we are excited about all of our rights. >> why is it hockey cannot get

popular? what is missing? >> we are still -- these are still popular leaks. they're in the process of spreading the popularity. i admire what they have done. we would like to be in the nhl. we admire what they are doing. thank you very much. i know it is a busy weekend. when we return we are going to sit down with paul jacobs qualcomm.

>> a very special edition. here we are at the nba all-star tech conference.

you are obviously here for a big all-star weekend. today we are talking about wearables. why do you like them so much? >> we talk about smartphones becoming a billion-dollar market. it is going to be a big market to sell to. you are going to give people information about their health and what they are doing. there is no notion that the phones are going to be at the center of universal sensors maybe inside our bodies. in may change the way the doctors take care of us and all sorts of things. >> i love that idea. i think it is a great brand for these kinds of things.

all of the things we have around us, we are talking about glasses. we are talking about shirts and shorts and shoes. under armour is a great brand. you obviously want to get a lot off the players. it will be interesting to see which guys are standing at the free-throw line. i bet you the fans are interested to know what their heart rates are doing. >> using about analytics and people thing about points and rebounds and x -- and assists. he wants how much sweat is being produced. they will measure an optimal situation. if you can mimic those metrics during the game it will be time

to get them out. >> we are going to see it in everyday life. we are wearing all of these things to do simple things like track our steps. eventually we are going to see all sorts of other kinds of monitoring. the kids want beats by trey. if lebron wears this and says this is what i use to optimize my game, because will go as well. >> what have you learned that you brought over to the team? >> we are doing begins. your phone will light up and say welcome to the arena. when you leave it says this is how the traffic patterns are. here is where the lines are shorter and longer. that is where it is happening.

that thing is going to have the best wireless conductivity of any arena. we want to give people different camera angles they can get to. we may want to do and augmented virtual reality. >> when we see these extraordinary arenas built, sort of a sad outcome. true fans onto her anymore because they cannot afford it. >> we are going to have a great product for all ranges of fans. one of the reasons that teams and sent for -- in sacramento not just because we wrote a check. but the fans are incredibly passionate. the nba one those fans to be there. >> and you are going to accept bitcoin? it doesn't seem to be working a lot of other places. , you want to be ahead with technology.

maybe it does pan out, maybe it doesn't. just keep challenging yourself. >> is anyone paying? >> you get the bitcoin and it translates to dollars really quickly. >> fans are opting to stay at home. if i can have experience at home equal to or better than the in arena experience, fans are staying away. does it make the experience so compelling that people will be fighting to get into the doors? >> i think giving people access to the kinds of things they have at home, so you can get the different camera angles, i think that is great. what sort of bandwidth doing need to give people to have an immersive experience? that may only be possible in the arena.

>> do you want to see basketball players wearing go pro's? >> if i am sitting in the stadium and feel like i am the one running through the crowd, i am the one who is going to dunk -- >> the nba was so ahead of its time. they got some pushback. pushback from the players. now it seems they all want their instagram in. they are all on snapchat. it is like they want to bring their personal fans closer to the game. >> i think everyone wants to build that direct relationship with their fans. the fans feel good about them.

one thing i love is getting to see the inside scoop of what is going on. that experience should be available to other people as well. we were very happy to be involved with the kings. he has a little bit more money than me. >> how much do you think the mets are going to go for? >> i think the valuations of all the teams are going up. we have this huge international fan base that we are only just starting to tap now. the valuation of the teams are going to be great. im really excited. >> the markets cousins better be happy. >> tell me true or false, the vac has gone into the coaches office and says i utilize this defense of my daughter's team we should try it here. >> i don't think so.

>> he is passionate involved. >> that is a good thing. it will be interesting to see the personalities. george karl is the 6 millionth coach in a ba history. >> what is your truly passionate job? what do you love the most? >> i still love technology. now i get to focus in on new technologies. i don't get -- i don't need to do the other stuff that is not quite as fun. i love technology. >> thank you so much for joining us. we will be back with more in just a few. we will be speaking with the co-owner of the celtics.

>> "market makers" will continue in just a second. i want to give you some updates with where we stand with the s&p 500. it had a new high. it has since pared its advanced after consumer confidence unexpectedly declined. with stocks higher, the dax reaching 11,000 for the first time ever safe havens like treasuries are seeing less demand. moving up to above 2%. oil rallying above $60 for the first time this year. the big data point for oil will be the rig count that comes out at 1 p.m. today. that could have a big impact on oil prices. in terms of winners at this hour, we are paying attention to cvs. that and rising fee helped profit in the fourth quarter. colombian sportswear up 17.4%.

there are lots of opportunities for consumers to pick up some more ski jackets as well. and gaining 6% after its outlook topped analyst estimate in a conference call. margins make stand without future acquisitions. finally the laggards included american express, extending yesterday's selloff. this the biggest two-day slide for mx after they cut their price targets on the stock once the company ended its agreement with cosco. that doesn't end until 2016, but everyone is pricing ahead of that. and delta airlines, katie stockton knows it has lost momentum and $50 is a new resistance level for this airline company. she says a pop -- a possible catalyst could be a change in the oil market sentiment. we are going to head to the nba all-star tech summit, where stephanie ruhle will be speaking with the kono -- with the

co-owner of the boston celtics.

>> live from bloomberg headquarters in new york, this is "market makers." >> welcome to the second hour of "market makers." a special edition live from the nba all-star tech summit. i am stephanie ruhle joined by scott sestak. we have a lot to cover in the world of basketball and technology. i will send you back to a bloomberg headquarters for the top stories. >> i will give you the bulletin. consumers not as confident as the economy -- on the continent as they were a month ago. consumer confidence fell.

after hearing of job cuts in the oil and should, plus gas prices have risen just a little bit since getting a six-year low. u.s. stocks have paired their gains after the s&p 500 climbed to an all-time high. it is at 2092. the dow jones industrial well above 18,000 about 20 points above 18,000. the nasdaq approaching an all-time high. getting back yesterday to the highest we have seen it since march of 2000, at the height of the tech bubble. talks are resuming over the greek bailout, both sites are said to be willing to compromise. the great prime minister wants europe to ease off restrictions he says have crippled the economy. german officials say the country will not insist that greek's follow all the requirements of the original bailout. chairs of zynga down. -- shares.

they were once the leader of games played on facebook. problems moving to smart phones and tablets from their. president obama is hosting a conference on cyber security at stanford university. he wants to find a way for companies to share information about computer network threat. 4 big names decline, yahoos marissa mayer, facebook's mark zuckerberg, googles larry page and eric schmitt. apples tim cook is scheduled to speak. i send it back to stephanie ruhle. >> thank you, matt. normally we talk to steve pagliuca about bain. today we are talking about his true passion, he is co-owner of the boston celtics. why did you come this weekend? >> bain is actually a

partnership. >> you do not have any players play, why is it so important to be here? >> this is when the whole nba comes here. we have a tech summit, we look at what is happening with all the sports and in media. it is a fantastic weekend celebrating the game midseason. >> the nba is flush with cash. >> when we bought the boston celtics the headline was, venture capitalist pay record price for team. the -- that did not help us raise money with other investors , they said, how is the price? you have seen an explosion of sports and he continues to go on . >> i wrote that story and i have written a lot of sales story since.

i lot of people tell me they were more surprised by milwaukee that bombers $2 billion? >> both of those are justified in an instant kind of way. l.a. is a diverse market. milwaukee is more of a blue-collar town but a great basketball town. evaluations are supported by tv revenues. they have gone up by 2.5 times since we bought our team. it has reached a new plateau. people see sports as must-see tv. the only thing you won't tivo through or see later. it is becoming huge to drive the ratings. >> turner and espn paid triple what they did last time. it is not must-see tv, it is must see screen, whether your phone, your ipad, how do you bring all of the startups and tech and wearable, how does that work?

>> we have talked about the fact -- i was at a conference in 1992, and the topic of the conversation was convergence. at that time, people said it would be revolutionary, the computers can converge with the television and that is before ipads or the cell phones we have today. now convergence is happening. your second screen is becoming your first screen. kids today are watching that screen all the time, watching the game on the screen, rather than on television. that has opened more viewership. it is great for the nba. >> as the teams have become more valuable and this investment have become much more they passion project, could you look at buying a second team? >> i love having the celtics. i did not buy the celtics as an investment.

the name of our company was banner 17, we 117 championships we wanted an 18th. we said to people, it is not 17 irr it is banner 17. we want to bring a championship back. when you are passionate about it, and you get a check digit, he values go up. they love the sport, and they love boston. we have been fortunate. it has been a great investment. >> do want to buy a another team? >> i love sports. they are pretty expensive right now. >> how much do you think the nets will go for? >> i have heard many numbers, all in the billions. new york is a big market and they did a fantastic job with the arena. >> when everybody is looking that as european football,

italian football, a lot of americans think their 20 years behind in sports marketing. what about europe, asia versus the u.s. in sports? >> the formation of the cricket league was amazing in asia. the mumbai team sold for $100 million and now it is higher. you are seeing the same dynamic that is happening in the u.s. is happening in a foreign markets. in china, they are introducing sports in the schools. yamane, sports have become very important. i do think it is behind and there are probably opportunities. let's let's talk a little extra. are you going to get them in boston? >> we hope so. we are honored to represent the u.s. i was part of it and it has been amazing. we were down in washington yesterday talking to our leaders

and they are supportive. right now, we are trying to but the best foot forward for america and boston. we think we have a shot. the games have not been in the u.s. for a long time, it will be 28 years. they have come out with a new directive call the 2020 directive. the ioc wants it to be sustainable, good for communities. they have had communities where laces like greece have had issues. they do not want that. that dovetails into boston, a place with 100 universities, we can put olympics on in a three mile radius. the only city in the world that can have the ebix and that type of frame. >> so expensive. >> that's the point on the 2020 they have downsized the stadium requirement. we can build temporary stadiums on site that will then be housing. improve the transportation

system -- the city has already budgeted $5 billion for that. there will be no public money. that will be seen as a huge success for the next. >> where they forced into it at the ioc? nobody was bidding on the games. they had to be dragged into a sustainable model. >> they step back and look at the process and said we want the live text to stand for good for communities. they have had that experiences. they step act -- they step back and their watchword now is making sustainable, great for the athletes and community. >> how do the celtics help? >> everybody on the celtics is excited, but it's not until 2024. we have a bunch of young stars. i am excited, i am horse because of the game on wednesday, we beat atlanta at the buzzer. there is nothing better than

beating the number one team in the nba at the buzzer with our young team. we won 4 out of the last five games. >> philadelphia is the poster child to what's been known as tanking. you guys have the same philosophy, a rebuild. what is the problem saying it did not work, we strip it and build again? >> i cannot comment on philadelphia. what we have tried to do is about winning. we drafted young players and traded al jefferson to get kevin garnett and traded a draft pick to get ray allen and the rest was history to get a championship. there is a difference. rebuilding is taking young talent and try to maximize it and try to win every night and that is what we do. i think you can rebuild and be competitive. atlanta is showing, if you look at that team, they have the second-best record in the nba.

they are doing very well and they have put that together -- homegrown and come out of nowhere and the second-best record in the nba. >> they are on the market as well. >> you are talking about a young squad you know a pretty good basket ballplayer -- your son a place at duke, a sophomore, a star. do you want him to be a celtic? >> i am not saying he is a star. he was a star high school player and he has worked very hard and they have a couple of walk-on spots. i was a walk on, so i have a history of that, and i had another son who was a walk on. sometimes i wish you would've gone somewhere in the ivy league, duke is a pro program and will have several folks in the pros. he is said to support those guys and be a practice players. since some transfers and injuries they are down to 9, 10 players, so he has a great time matching up in practice trying

to help the team. >> clearly you love having her son -- >> it is a wonderful experience. they used to average a 3.7. >> steve, thank you very much. >> there is nothing better than being associated dan with a person like coach k. we went to his 1000 victory at the garden, he is an amazing man and an amazing teacher. >> thank you, so much. steve pagliuca co-owner of the celtics. we will be back with more. strauss celtic will the talking gains. ♪

>> for some of the top headlines around the world. the slowdown in defense spending hurt rolls-royce holdings profit in 2014. the company, which makes airplane engines, says this year's earnings will be hurt by the collapse in oil prices. rolls-royce is forecasting a lower profit for 2015 and is expecting fewer orders from the offshore oil and gas industry. the french bank societe generale is feeling the pension of russia's shrieking economy. they plan to cut about 1500 jobs as of smaller profits. according to a person with knowledge of the situation. they have more than 20,000 workers in total in russia. the chinese smartphone maker is taking its first depth to the u.s. market. they will open an online store in the u.s., but it will not sell smartphones here. here is their global vice

president. >> the u.s. is a trendsetting market. we have new headphone products it a beautifully designed, high quality stereo hi-fi headphones. we would love to get feedback on that product from consumers in the u.s.. it would help us make it better for the entire world. >> apple has criticized them, saying their phones look a lot like the iphone. casey wasserman is here in new york -- with stephanie at the nba tech conference. take it away. >> i am also joined by my cohost. >> what does the wasserman media meet -- what does that mean when you meet with a client? >> i describe our business as a

sports marketing business with two kinds of clients. we represent athletes, 1500 athletes in 30 sports. we represent brand and properties on how they leverage their connections with the business of sports. our clients are consumer brands properties tournaments, events rights holders. obviously connecting with sports is a unique and sometimes interesting and different proposition. >> everyone used to say give me the distribution, now the content seems to be the king. you can handle both. technology eases both? >> what has happen in terms of the proliferation of content and these massive distribution platforms, not just cable or satellite whether it is instagram, or snapchat, they have aggregated significant numbers of people and know a lot about them. you know exactly what people want. that marriage is interesting and unique and potentially al ebola.

>> you educate your athletes that this thing they have in their pocket is a distribution channel? >> we do. it is mostly focused around awareness and engagement. in a very short order, it will be a distribution platform that drives revenue for the athletes. >> how so? >> the consumers -- the days of consumer buying directly from a napoli is near. -- buying directly from an athlete is near. when the shoes are sold at foot locker or decks, and there is another royalty when they are sold through twitter or instagram or snapchat. that is good for everybody. those opportunities will be significant and we think we have the caliber of athletes and relationships to deliver that. >> what you think of rock nation getting in to the sports

business? >> i wish them the best. >> the league and athletes are partners in the distribution. >> no question. whether it is russell westbrook or anthony davis posting highlights of their game or the nba, it is good for the business of basketball and everyone is trying to grow that business and opportunity. >> is technology and what you do and powering athletes to become far more powerful? years ago, they just played on a court, now they seem to be owners, stakeholders. >> first and foremost, they are players and if they do not excel, and conduct themselves in a way that people respect off the court, the other stuff does not matter. russell westbrook is an

all-star, he happens to be an instant person off the court, a wonderful person who has this interest in fashion and expresses that on instagram in an interesting way. >> does every athlete not deserve the opportunity to be a brand? >> all athletes are capable of having interesting things to say and connect with fans. some of that may be localized. sports is local and those athletes are relevant locally. they can have a voice, and opportunity to speak to their fans in a specific way. those all half an interesting perspective and they are always fans of that team. >> it is the ultimate scalable opportunity that you can reach a fan in the chana or india just as easily as andrew luck can reach a fan in indianapolis.

>> that's why athletes will see significant opportunity. they can not only connect with but understand and take advantage and monetize that fan base. >> will it change the league player relationship? an athlete might say, i do not choose to use your brow, i want my own deal? >> no i think that probably happens more at the team level event at the league level. in many cases, teams are connected with local team sponsors. even the biggest athletes are not guaranteed inclusion in those deals. i do not think that is a huge issue, athletes will become a marketable in their own rights and hopefully that helps the businesses of the teams and the league's. >> are you going to bring the olympics to los angeles? ultimately?

is it still a goal for you? >> as much as i enjoyed the process, eric garcetti asked me to help the effort, we fought hard and the one thing i told the mayor and the one thing we could never overcome is that we have had it twice. i thought we had a unique opportunity, a truly different approach to hosting and managing the next olympics. ultimately, the elephant committee decided they wanted -- the olympic committee decided they wanted to try something else. >> thank you for joining us. i do not know what time it is. casey wasserman, we will back -- be back with more market makers live from the nba all-star tech summit. ♪

>> stay with us, more to come on this special edition of "market makers" nba all-star tech conference weekend. when we return, strauss zelnick. ♪

matt: we will take you back to stephanie at the nba tech summit in a few minutes, but first, as european markets close, let's get to scarlet fu for an update on how those indexes are finishing their week. scarlet: germany's dax rose above 11,000 for the first time ever. it closed at a record 10970 as gdp there rose 7/10 of 1%, twice as much as forecast.

europe grew 3/10 of 1% in the fourth quarter. greek debt talks continue. thea ase index pushes higher. for your earnings beat analyst estimates, even as it wrote down assets by $4 billion a cousin of declines in underlying prices. this is the euro, you cannot really see it, you need to know that the euro finished stronger on the day, part of a larger trend. in this chart, a five date chart this is monday, and here it started the week. it has steadily pushed higher versus the dollar. an uptrend, even as it holds near lows against the dollar over the longer span. expand to what is going on at home. the s&p 500, in the last 30 minutes, making a new high of 2094.74 as consumer confidence unexpectedly declined. crude topping $60 a barrel.

the 10 year yield is about 2% again. treasuries are set to fall for a second straight week. less of a need to hide out. of course the dollar strength story continues. matt: thank you scarlet fu. let's kick off the bulletin the top business stories. shares of the maker of candy crash king digital up 12%. farm heroes and have rescue rose by more than candy crush declined. the ridesharing company lyft is in talks to raise money. they have struggled to get out of the shadow of its larger rival -- rival uber. it was use -- it would use the

new cast expand into more cities. job cuts on the way for yahoo! there you -- their ceo is cutting 100 55 people, 1% of the workforce. the cuts affect editorial staff in canada. she has been looking to cut costs -- or continue cutting costs. a year after he pushed a woman who is now his wife, pro footballer ray rice has apologized to the baltimore ravens and their fans. his 30 $5 million contract was terminated and he was suspended after a video of the punch was made public. he wants to raise awareness about domestic violence. he is hoping to find a new team to play for as well and get paid by. we will be back at the nba all-star tech summit, taking time with take two interactive ceo strauss zelnick. stay with us for that. ♪

stephanie: we are at the nba all-star tech conference and i am joined by game or extraordinary, strauss zelnick. when we think about why we are here, technology is a big portion of it. one of the reason you had such a good quarter in the third quarter, was those game titles. wrestling or basketball, how much to the impact your bottom line? strauss: we have sold 5.5 million of our basketball title. our wwe title was up 40% year over your basketball title and enables consumers to state engage and we monetize that engagement. the virtual currency is up 90% year over year. stephanie: how are your games different? strauss: they are better. we have the highest rated sports totals in the business. in the interactive entertainment

business, consumers pay attention to reviews and high reviews and high scores are directly correlated with performance. stephanie: how big can sports games get? when we think of take two, we normally think of "grand theft auto." strauss: our company has become diversified. we have five big titles over the holiday season. grand theft auto is enormous. that said, we have built 10 other massive franchises including nba 2k and it is not just nba 2k and console form, online it has 24 million registered users in china. that brings us revenue and profit every month. it is like clipping coupons. stephanie: what sports franchise do you want next? strauss: in terms of what is next, we want to do better with what we have on our plate. hopefully we have innovative ideas and we tend not to share

them publicly. we are not the biggest sports biggest -- business. stephanie: do you want to be? strauss: our company is focused on being the best. we are one of the top three, the top two are much bigger companies. we have a lot of wood to chop. one of them haass a massive sports title. stephanie: can you see yourself truly competing with madden? strauss: we are bigger than madden. can they aspire to be bigger than nba 2k? stephanie: who is actually playing? we left is a gamers are guys between the ages of 18 and 38 sitting in their mom's basement but who are they today? strauss: they skew more male than female, but over 40% of our

consumers are females and our median age is 38 years old. it is the only growth business in the entertainment business that is getting bigger and bigger, and as that happens, that cohort ages. that cohort wants better and more engaging and more elegant technology that drives fun entertainment expenses. stephanie: how about your mobile market, how much can that grow? strauss: it can be enormous. we have just scratched the surface. we have only brought a few titles to tablet. we have companion ax smartphones, nba 2k. a wrestling game has been downloaded 6 million times. imagine where we can go as we bring more companion apps to consumers. they generate consumer spending and imagine what happens to

market overall and tablets become as powerful as pcs. stephanie: do you work with the leaks through your games? strauss: do they work with us is the answer, and yes, we have a tight relationship with debbie debbie and adam silver and all of his colleagues at nba. stephanie: to is it a benefit for you and all these players have become brands. their personalities have become bigger. doesn't make the game's more marketable? strauss: having music involved as well. we are delivering a round, broad, big entertainment experience. that involves music, personalities, stories, and most recently involves people able to put themselves into their games. you can scan your own head and get into the game. stephanie: it is so much more expensive to put out those games

because of the elegance, they all want to have a piece. it is not like a few years ago where it was random players. strauss: it is an expensive business and the risk profile reflects that. the returns also reflect that. the hit ratio for a well entertainment company is in the 80's. the hit ratio in the movie business is in the 30%. and the interactive entertainment business, if you do it right, it is a lovely and elegant business model. those very expensive production marketing, overhead and licensing, they do create a risk profile. from our point of view, it embeds the winners further and creates a barrier to enter into our business. what seems like a problem -- >> guys with an ipad sibley can't yet in -- simply can't get in?

strauss: not without a couple hundred -- with 200 engineers and artists. stephanie: what does this weekend mean to you? how does it affect your business? strauss: i love that out of in the team are starting with technology. i love that we are at the center of new york and getting all this attention. basketball has so much growth ahead of them and that benefits us. i hope there will be attention to international markets. they are only about 20% of our revenue for sports. stephanie: thank you so much for joining me. strauss zelnick from take two interactive. we will be back. ♪

matt: the top headlines this

hour -- in ukraine, fighting raged overnight. the government says pro-russian rebels are attacking along the entire front line, germany's chancellor has emerged as a skeptic of the truth. she says if there are problems russia may face economic sanctions. the united nations is warning that yemen is heading towards collapse. fighters from an al qaeda unit have captured the headquarters of a yemeni army regained. u.n. secretary-general says the rest of the world cannot just dan by and watch. the security council is trying to come up with a political solution. in south africa, ks during the annual state of the nation address -- members of the main opposition party walked out during the speech by the president. other lawmakers interrupted his speech, demanding he respond to questions about a spending scandal. that wraps up your world news. i will send it back to

stephanie. stephanie: i am here at the nba tech conference, but last night i was at another special event. the boys and girls harbor investment conference, chaired by hersh in square founder bill ackman. we sat down and talked about his big longs and shorts and companies he could be looking at. the cooking has been a big win or bill in the past. -- burger king has been a big win. i had to ask bill what is in store for him and mcdonald's. bill: we look at everything big an interesting. we might own it, we might not. >> you think if they followed burger king it could be more interesting. bill: for sure. stephanie: coke and pepsi either one interesting? bill: no.

stephanie: where are you in the process? you said to me, this thing is going to zero. bill: it will. the 26th of february is a big day, they announce earnings after the close. they're holding a cop occurrence -- a conference call after the close. it is a tell that the numbers will be bad. a typically filed the press release, put out the 10k, give you an evening to read it and you can ask questions. you are in the pr business, you give people in no time to read the 10k and do the conference call at night you are trying to get ahead of the news. the earnings, on that tell the business bundles are deteriorating. what is interesting is, they are going to have a bad earnings, it will have to take them guidance. the most interesting stuff will be in the 10k. some, nation of the sec and auditors will require them to make more interesting

disclosures. that will be useful to the process. at this point, it is a race to the bottom. will the government intervene before the business falls apart? stephanie: heavy strains the structure of your position? bill: no. i think she is at the same conference. i do not think she is on a panel, that would surprise me. no. nothing of substance. stephanie: do you have a view harry wilson's name has been in the news, kyle bash, trying to get. in the mix to push gm in terms of share buybacks -- you have a view on this? bill: i have met harry, i think he's very capable. he knows a lot about gm. i am not a big -- i do not like

it these is predicated on capital returns. my us some sin is harry has more up his sleeve than returning capital to shareholders -- i assume kerry has much more up his sleeve. stephanie: maybe coke and pepsi, you note we had to hit herbalife. you can see that entire interview on bloomberg.com. i will sign off for market makers but i am not going anywhere. i will be spending the entire day here at the waldorf-astoria nba all-star weekend, not just about the boys on the court. i am here at the tech summit, a lot more to cover throughout the day. i will be signing off for the day and he week for "market makers" and i will see you next week. i will see you later this afternoon. thank you for watching. ♪

scarlet: bloomberg television is on the markets. let's show you where things

stand. u.s. stocks shrugging off a dip in consumer confidence. the s&p 500 making new intraday highs, 20 94.74. it has taken its cue from europe where a report showed that the region's economy grew more than expected. nymex crude oil up by 3% on the heels of brent crude topping $60 a barrel for the first time this year. running the -- joining me is senior derivatives strategist. as u.s. stocks rise, the fix comes down, we are below 15. does no one want to project themselves ahead of a three-day weekend. >> there has been less demand for protection that we have seen in years past. people are not buying protection and the nature of the dip has made it less attractive to put on large heads positions.

-- hedge positions. for big asset managers who are not so fast moving, it has not been a great environment for putting on massive long volatility trades. >> discuss the nature of the dips? a lot -- >> a lot have been caused by factors fixed income in currency, geopolitical risk not about the fundamental in the equity market. that will change over the next year. while hedging has not been interesting or attracting -- attractive to managers, the case for the risks that need to be hedged need to be changed. we might see a change in the nature of volatility trading. >> we have janet yellen ready to give her testimony, how big of a volatility factor could that be? >> it will increase as the year goes on. her comments and tone and offhand remarks versus what the markets will look for.

despite disappointing retail sales and durable goods, the overall economic data is pretty fantastic. the case for june and some of the rate hikes is stronger than it has ever been. people will be watching to see if yellen's position. >> i mention oil prices rising. you have a trade on the etf that tracks oil oil -- production companies. >> a bullish position on xop. we are doing 2 things. the traders to sell alimony productions. by upside calls, it gives you bullish exposure, you are sent that ugly -- synthetically long. i like the direction of you, oil will rebound and stabilize. well off the lows and a lot of these companies have rebounded in terms of price action. as that continues and the

companies are better positioned from the diversified names. what flagged this for me is the options market segment has not matched the movement we have seen in the stock price. if you look at xle, the option skew their has fully reflected bullish potential for the future. in xop that is not the case. this risk reversal can give you more upside even if the price is flat and our directional view is wrong, we are taking advantage of the skewed way in a way that makes the position much more favorably. >> you have to act fact -- fast here. we are looking at the parent company of victoria's secret and you know -- interesting options? >> the fundamental's of the company are interesting. even know the headline number

for retail sales was not great, one place that has seen consistent growth since september is women's clothing. you have not seen a drop in retail sales since september month over month. the most recent release was neutral, but the trend is strong. the closing category overall has been a strong year over year. >> all those 50% off, 60% off signs. take you for joining us on our options insight. "money clip" is next. ♪

attac