Vladimir putin. It still sees involvement in fighting in eastern ukraine. Bench mark and straight. A surprising move, new standards were set in the amount of easy to sell assets banks might hold. The aim is to prevent another financial crisis. The Parent Company of kfc and pizza hut says samestore sales because have fallen 13 of a food scare. Yum gets half of its revenue from china. Back overseas, president obama is in wales today with other leaders for a twoday summit. The first nato session are kicking off right now. The conflict between ukraine and russia will be a top priority for nato, which took a firm stance against his old foe from the cold war era. As we kick off this meeting, what exactly is a method to play out . The big theme is ukraine. We got these hints yesterday from the russian and ukrainian president that they may be on the cusp of a peace deal. The important thing to look for is how are the Respective Companies responding . Initial responses are quite skeptical. He thinks the president putin peace plan is insincere. We heard something very similar from president obama yesterday. Thate really thinks so far we are on the cusp of a deal in the ukraine. They are concerned the violence will continue to rage there. What are some of the steps they will take . The reason that is important is because you have two things on the table. Anone really expects nato as alliance to do anything in ukraine. No one will send troops and the alliance will not send weapons. They say they do not have weapons to send. What they could have is a coalition of the willing. The idea is, you could have a coalition of the willing ear at a few countries that agree on the sidelines of the summit to give ukraine weapons. That is something the ukraine is really asking for. This is a nato summit to forget that. It is also a collection of 60 world leaders, including eu world leaders. They want to impose more sanctions by tomorrow on russia. Maybe, they will not impose those sanctions because we are going to see a peace deal. Suggestsso far today we may actually see the sanctions. Thank you. You will keep us uptodate on that. The nato meeting kicks off. Moving and shaking this hour, the tesla motors ceo elon musk has apparently picked a site for what he calls his giga factory, a 5 billion plan for building factories. A factory will be in nevada. It expected an announcement will be made today. Will ultimately create 6500 jobs. Musk has pitted nevada against four other states. California took themselves out of the running yesterday. Buildts to eventually half a million teslas by the end of the year. Eventually, tesla will need more than one giga factory, which is why they will break ground on two site. Story this week. Up Employment Data starting till now. Adp will be at 8 15 a. M. We begin this morning by asking the question, why in corporate record . Are stocks at a is the job market still so weak . With me is our guest host this hour. Our managing partner and former ceo. Great to see you this morning. That is a question you contemplate and keeps you up at night . Why are the stocks doing so well . Are we not see ms. And the jobs market . There are fundamental is going on that makes sense if you peel back and look underneath what is going on. M a. Synergy,is going to be job production. Most productivity gains are technologybased. We go think about how through our day, companies have gotten very good at investment and r d and putting the technology to work. That also usually means less jobs. Want to order food and you type in the ipad, that is one or two less employees. The economy putting hotels out of this mrs. A lot of downward fresh or from the combination of things there it it is not that. It is the process of his nice. Stocks make sense but the productivity leads to earnings growth. , whereys look at topline is the Revenue Growth . A big displacement in the job market now with a ton of people unemployed. I have been saying this. There needs to be a retraining effort. There is a huge skill gap. When people talk about is it basically the lack of jobs . Gap is the third piece of the problem. You have got m a and productivity. You still have a skill set. You have people who have been displaced, particularly middleclass. There are underemployed but what gets referred to as , it really does matter, much more than the headline of employment at 6 or whatever. It sounds like you are saying this is likely a secular issue in the jobs market, that it will not rebound. You can also see it in the housing market. The forecast for housing Going Forward will be much more multifamily and much less single home. That is also a secular shift. That is another consequence really of the jobs issue. Of the jobs market and job strength. Various speak with companies you are consulting right now, and advising, what do they tell you they need to see, or do you find all across the board, there is a lackadaisical sense when it comes to, i will be hiring in the near future . Then you have to dice the economy up and look at where there is and is not growth. There is a misnomer out there that we need to raise minimum wage and then we will talk about that later in the show. Tos have to Pay Attention things like turnover. They have to be competitive with wages if they want to get people. That applies to pretty much every sector. If there is a held back investment by companies with in their sectors. I think some of these changes are permanent changes. Right. No one is pulling the trigger on anything right now. Me. With my guest host for this hour. He will be with me throughout. Back to the top story mentioned, i do not want to gloss over this. It is the European Central bank taking steps to jumpstart their own economy, a surprise decision by the ecb to cut their benchmark Interest Rate. The rate was limited by us six just six of 57 economists. Almost nobody expected the move. Mario draghi is expected to speak in a few moments about this latest move. Olivia sterns, who for years was based out of europe and london, tell us how significant this is. It is a signal things are a lot worse in europe than we give it credit for. It was unexpected and it does signal to me at least that mario draghi feels like he has his back against the wall. The numbers out of europe have been getting steadily worse. Growth completely stalled out in the Second Quarter. 0 ond quarter gdp, inflation. 3 10 of 1 . Less than a quarter of ecb target. Unemployment is still in double digits. Mario draghi is concerned that you will become japan. He wants to stave off deflation. He said he would do whatever it takes. He does not signal any more. He actually feels he has to take action very in june, we went to an unprecedented territory of negative rate. Now we are going to lower negative territory. All rates have been cut. He wants to stay ahead of the curve. Has he been under pressure by said,ists and others who do not fall behind . He certainly wants to stay ahead of the curve. There are limits to what he can do with Monetary Policy, fiscal and fiscal policy, he needs the government of france, italy, he needs these governments to make reforms to the industry, to make them more competitive so economies can get going again. He is of course owned under a lot of pressure. Of people on twitter saying, there we go, that took away the floor on the euro there it looks very much like it could fall to 129 today. European stocks are soaring on the news. A race to the bottom again. Thank you so much. Stay right here. The ecb president will be speaking from frankfurt to the press in just a few moments. We will bring that conference to up, ontohere it coming another subject, sports, the new kid on the nba block. We will talk to one of pro basketballs newest owners. It is a big jobs week. Were just getting breaking news. Thans coming in worse expected. Slightly undershooting economist estimates. 2004000 jobs created in the month of august compared to estimates of 220,000. Our chief markets correspondent has a breakdown of these numbers. Scarlet . Head of the Labor Department big jobs report tomorrow. 2004000 is lower than anticipated by economists and it follows a 218,000 increase for the month of july. , the payrolls report showed an increase of 2009000. Scene,tay with the same we could look at a seventh straight month of payroll being above 200,000. In terms of the breakdown of the employment change report, i am looking at Service Providing sectors adding 160 4000 jobs, versus the good producing sector. Seeing it reflected in the latest adp employment numbers. Thank you. We are waiting for jobless claims as well at 8 30. A Hedge Fund Manager has made waves announcing they would buy the Milwaukee Bucks for 550 million dollars. A record paid at that time. That was until Steve Ballmer dropped a cool 200 million dollars. High valuations and cash infusion make big changes for the sports team. Congratulations. When we normally sit down to talk, we are talking about asset. Asset. Not a distressed why did you get involved . It was a distressed asset. When we got involved, we thought in essence we would be able to buy a Basketball Team for a pretty fair price. It has turned out that way. We have all seen two or three months later you had about five or six troops willing to pay over 4 billion for a basketball. Paid 2 billion. We had a pretty good deal at the time. Atdo you wish we had a shot the clippers . The next thing you know, boom, and let and is for sale. No, we are thrilled. I have always been a huge Milwaukee Bucks fan. And we haveas great no interest in buying a team in l. A. How long will it take you . I would love to tell you it will take a year. I do not think so. Somewhere around 35 years. The nbathe best team in right now that is under 23. If you look at it, we have a great group of young guys. The question is, how well will they develop . We think they will develop well. In three years, we will end up being a formidable team. You already made a 100 million pledged to build a new arena. Is that good is this or are you doing it because it is er . Why do you need to do it . We need a new arena. We would like to build a new one. We need to. That was part of the Purchase Price of buying the team and were very comfortable with that. It will cost a lot more than 100 million to buy the arena. Are you prepared to put more money in . It has got to be a partnership and we have got to do this for the city and we think over time will be able to do this. We have seen other team owners like don sterling not invest more money and they basically let their teams run into the ground. When it was time to sell, they made out like bandits. Why not go that route . That is not why we bought the team. We would like to end up winning an nba championship. You will see us putting money into the team. This, iwhen you look at would love to tell you we own it. Fansity owns the team, the on the team. We are managing it for this time, and we have a responsibility to do the best we can. Why was he the right guy for the team . You knew him from new york very part of it, you want people who have been winners. He was one of the best basketball players ever. You will be see you will see him become a hall of fame coach eric you have a longterm plan for him to become more than a tote then a coach . Us, it is much more of a team approach, as opposed to everything being individual. What is the biggest challenge for the team right now . You have got to run a fund. I am not running the team. Wes is, the managing partner. He is spending a lot more time, mainly because he is the governor. You want tojob is create a winning culture. I do not think milwaukee or the bucs have that so we will do that. Daughter went his to the nba lottery, not yours . No, it was a fun time. Congratulations and good luck this season. Back to you. Thank you. Still to come, do not miss another nba team owner, the coowner of the Boston Celtics. We will talk to him in the next hour. You can catch all the action. Ive also live will be the ecb president , mario draghi, in his press Conference Starting in just a few moments. You are watching live on Bloomberg Television and streaming on your phone. Our top look at headlines this morning. Goldman sachs get an expanded role. Agent, whichon means it will be in charge of overseeing a deal in early trade according to the wall street journal. Overseas leisure travels in china, a driving demand. Received 13 more onerous more orders in china that it got all of last year. Lego is the biggest toy company in the world. Sales rose 11 in the first half of the year. Sales were few fueled by playsets fuse with the lego movie. The hour. Inutes past Bloomberg Television is on the markets. The markets are rallying slightly. Under expectations, short of 4000 private jobs created. Inare on the markets again 30 minutes. Jobless claims are out in just a few moments. Heaping the focus on jobs, fast food workers are protesting a chains nationwide bump up in minimum wage to 15 dollars an hour. These workers understand franchise owners do not have enough money to pay them 15 an hour. However, the fast Food Industry is a 200 billion industry, one of the Fastest Growing industries and the dutch in the country and theyre paying the lowest wages. There is plenty of money and power to go around. That is what the workers are fighting for. Covering the protest today is ang yang standing outside washington, d. C. Mcdonalds restaurant. Still with me as my guest post this morning. Host this morning. There will be no protest. Tell us why. You are right. No protest in d. C. Business as usual in the nations capital. It is a different story in other parts of the country. Eights make a median dollars 94 cents an hour and are protesting for 15 an hour wage and a right to unionize in what is shaping up the largest strike since the demonstration began in 2000 then, it all started with 200 fast food workers walking off the job in new york. Today, organizers expect numbers in the countless thousands. Around change this time his home care workers who make an average of 8. 60 an hour, are joining and broadening the change, area another civil disobedience. Expect several hundred arrests. These people mean business. They do. What is the issue . There is a lot of money to go around. Ceos is a fast food thanurants make 1200 more each individual. That is populist and straight out of washington. You are repeating what is coming out of there, which is fine. Look. People miss the point. Pay attentionto to turn over as one of the things that makes their business go. Every company i go into that is troubled has a high turnover rate in employees. That is a killer for business and culture. It is a high retraining cost. It affects your ability to deliver service. Unless mcdonalds has exorbitant turnover, their pain probably market were employees. Businesses compete and have to pay to keep their turnover rate low. The notion there is correlation there is high turnover. A turnover rate of 25 . Three quarters of workers tone over per year. Again, the better operators do not have turnover rates at that level. The reason youre seeing so much pressure on minimum wage as an issue is andrew entry level jobs for younger people are now held because of the labor by people with families. Family on to raise a that wage, no question. That is fine but somebodys going to lose their job. This is a fixed five. Pie. Xed if l. A. Wants to raise the minimum wage, they have a lot of locations, that will kill their stock, unless they make adjustments and cuts to keep profitability where they need to be. The economist argument that the money will go into the economy and there will be consumption, it is not true because people will deal ever their student loans, their credit cards. That is not consumption. Stay with me. You are our guest host for the hour. About meantime, speaking jobs, jobless claims numbers are out 3002000 jobs, jobless claims, in the week ending august 30. That is slightly above what economists estimated. The jobsas been on data this morning. Breaking news. Scarlett . That is right. After we got the adp employment change number, we get the jobless claims number, which, for the most art, is a in line with analyst estimates. We had 3002000 initial claims for jobless benefits. The previouse from week. We are still looking at sevenyear lows in terms of applications for unemployment benefits. It still points to a pretty strong labor market and confidence among businesses overall. Data,ms of other economic we have trade balance numbers, where the trade deficit in the billionrowed to 40. 5 dollars. In terms of Market Reaction, not much movement. Futures took a dip lower and are moving higher right now with the nasdaq futures in particular going up 3 10 of 1 right now. Thank you. In the meantime, we are keeping our tabs on the European Central bank. Mario draghi is speaking right now in frankfurt. The bank surprised the markets andutting Interest Rates also mentioned the Economic Outlook is darkening in europe. Lets listen. New purchase program. Under theses programs will start in over of 2013. The details modalities of these programs will be announced after on governing Council Meeting october 2, 2014. The newly decided measures, together with the targeted longterm refinancing operations, which could be conducted into the lease, will have a sizable impact on our Balance Sheet. This led to the monitoring policy measures range taken over recent months. They will support our Forward Guidance on key ecb Interest Rates and reflect the fact there are significant and increasing differences in the Monetary Policy cycle between advanced economies. They will further enhance the functioning of the Monetary Policy mechanism and support credit to the broad economy. In our analysis, we took into account the overall subdued outlook for inflation, the weakening in the euro areas growth momentum over the recent past, and the continued subdued monetary and credit dynamics. Today, together with other measures in place, these have been taken with a view to thenning deferred and firm anchoring of medium to longterm Inflation Expectations, in line with maintaining inflation rates below but close to 2 . As our measures work their way through the economy, they will contribute to a return of closeron rates to levels to 2 . Should it become necessary to further address prolonged time of low inflation . It is unanimous in its commitment to using additional, unconventional instruments with its mandate. Let me now explain our assessment in greater detail, starting with economic analysis. Following four quarters of moderate expansion, euro area gdp remain unchanged in the Second Quarter of this year, compared with the previous quarter. Reflectedartly factors, this outcome was weaker than expected. With regard to the third quarter, survey Data Available up to august indicate a loss in cyclical growth momentum, while remaining consistent with a modest expansion. Domestic demand should be supported by the range of our Monetary Policy measures, the ongoing improvements in financial conditions, the progress made in Fiscal Consolidation and Structural Reforms and Lower Energy Prices supporting real disposable income. Demand should benefit from global recovery. At the same time, the recovery is like old likely to continue to be dampened by high unemployment, sizable unutilized capacity, continued negative loan growth to the private sector, and the necessary bounce sheet adjustments in the public and private sectors. Ahead, key factors and assumptions shaping the growth need to be monitored closely. These elements are reflected in the september 2014 ecb macroeconomic projections for the euro area, which foresee , increasing byp 1. 6 in 2015, and 1. 9 in 2016. 2014red with the june macroeconomic projections, the gdpions for real gdp growth for 2014 and 2015 have been revised downwards and the projection for 2016 has been revised upwards. The council sees the risks for the euro area on the downside. In particular, the loss in economic momentum may dampen private investment and heightened geopolitical risk will have a further negative impact on his this and consumer confidence. Risk also relates to Structural Reforms in euro countries. Estimate, euro area annual inflation was 0. 3 in august. 2014. After 0. 4 in july. The decline reflects primarily Lower Energy Price inflation, while the other main components remained broadly unchanged in the aggregate. Rates now remain low for a considerable time. Today, decisions, together with other measures in place, have been taken to underpin the firm anchoring of medium to longterm Inflation Expectations in line with our aim of maintaining inflation rates below but close to 2 . On the basis of current information, annual inflation is expected to remain at low levels over the coming months. Graduallyreasing during 2015 and 2016. Ecb staffber 2014 macroeconomic projections foresee annual h icap Inflation Inflation a dire forecast and comments coming out from ecb president mario draghi. He is cutting the growth forecast for 2015. Raising the outlook and as we have seen with the markets, a big reaction, a sharp reaction, to the cutting of benchmark Interest Rates. You are joining me earlier, Olivia Sterns. He of me more perspective. Like a moreds powerful stimulus. Hike. An unexpected rate the overnight rate for landing going further into negative territory, all three benefits benchmark Interest Rates cut. What mario draghi has now announced in the press conference sounds a lot like a precursor to full quantitative easing. Simple backed securities will haved he says it a sizable impact on the ecbs bounce sheet. In october. Tart a huge Market Reaction this morning. Trading 1. 3 against the dollar. European stocks are heading higher. The bonds are continuing to sell off on the news. To any to listen closely more details on the bond buying program. As you are seeing, the euro is hitting a 14 month low on those moves. Thank you so much. I know you will continue to help us monitor the comments from mario draghi. Tomorrow is an allimportant markets day. It is job state. Tune in at 8 30 a. M. Eastern time. Complete coverage, including a big ceo roundtable. Dominos Patrick Doyle and the chief executive, john mcavoy, joining me right when the jobs data crosses. Controversy. Sfit have you done this brutal exercise regime . The high workout has exploded in popularity, but they may not be safe. You might get injured here it much more on the controversy. Stay in the loop. Halfing right now, mario draghi is speaking to the press. That is one of the reporters asking questions. The central bank unexpectedly. Ut Interest Rates the Economic Outlook darkens in europe, cutting growth forecast for 2015 but raising it. We will continue with any headlines coming across. You can also watch it on our live event european channel right now. We will keep you updated on any headlines. Lets turn to a different topic. It is a fun topic but a serious one as well. Crossfit has slept the country. Thousands of devoted his are addicted to its workout of the day. As more and more members join, questions about safety have emerged. For more on the workout guyomenon from a pretty fit himself, brandon. I will tell you my problem. I did it for a year and then i stopped doing it because we had another kid. The suit is very uncomfortable on me. I am a noncrossfit guy wearing a crossfit suit. Have you done it at all . I have not. I have tried similar training programs. I will just say on the dangers side, these are aspirations. There is an aspirational element to wanting to get involved. Myt i found that my age is joints are not nearly as aspirational as my mind. It does not work for me. I am sure it works for a lot of people. I looked into injury rates. The best way to measure among different kinds of activities is injuries per thousand hours of activity. If you look, there are two studies right now. About 2. 9. Ome that is roughly in the range of olympic lifting and gymnastics. Hockey. Study for is roughly similar in the range of what we see for running. About why there is suddenly a focus on Interest Rates . Classical stagers. They have an image problem. You can go on youtube right now and find a lot of video compilations called crossfit fail, and people dropping bars and doing dangerous looking stuff. There was a study that found mostly that people have incredible improvements through 10 weeks and one line said of 54 people who did the study, 11 did not come back for the test. The journalsuing that published it, a crossfit gym where testing is done is also suing the publisher of the journal. The contention is that the number was made up because traditional fitness believe that crossfit is dangerous and are out to prove it as such. The data is so young. So young and so small as well. It all goes to the trend. You are a pretty fit guy yourself. The whole trend in america here where we are all trying to be healthier and out exercising each other come out eating each other, healthy options. Sure. Crossfit is not the only one. There are a number of programs out there you can either go to the gym and do a , or do a video at home. User of one ofg the alternative programs. It is possible the lineup the ohio state study is an outlier. It is new data, but there is data. They do not have experience. Three per thousand hours or 2. 9, that seems inconsistent with the ohio state study. I think it is one of those things where it has got to work for the individual. There is a social aspect to it. It is a cold. Isnt it . I think a better way to look at it it strives. I went to the crossfit game. People are obsessed with their own gym. They are proudly wearing the tshirts of the gems they workout in. It is tribal in this strange way. It is important to pull up to point out this is a part of a broader strategy. Crossfit does not see itself as competing with them. It sees itself as having created a new definition of fitness and the sole future of fitness ear they have large ambitions. There is a huge social element, which is the difference between the athome bitty athome video. I think that is exactly right. I talked i talked to a researcher who said, the reason it worked is because they felt welcome at the gym. I did not last more than an hour. I cheated my way through an hour of it. Thank you so much for joining us as our guest host. For, brandon, thank you bringing us that interesting story. You can find the full article available digitally today and on stands tomorrow. Outside of jobs, a lot of people will be close to the Television Sets because it is kickoff day for americas most popular sport. Football. Nfl is also the most lucrative, raking in more than 9. 5 billion in 2013, including sports rights. Part of staying on top is getting merchandise into the hands of fans and increasingly into the hands of female fans. Along with the new season comes a new campaign with female celebrities. For more, i want to bring in the nfl Senior Vice President of Consumer Products who joins us on the phone from seattle. Apparel forake everyone, for kids and men and women. A lot of attention has been paid to what the nfl is doing, targeting women. Under armour, to gear more towards women. Why this focus . Why now . Fifth year of our womens platform. It is a very simple idea. We have 46 of our fans are female. The womenuseholds, are the gatekeepers. It has been a Successful Program we anticipate we will continue serving for many years. Right. The criticism, you read it on the web and social media among women fans. Is that they have been catered to in the wrong way and it is always been about, lets produce pink shirts and sell it to them. Was there a real awakening that there was not working that was not working for the nfl . When cecily. I came five years ago that that is not what our female fans want. We have been able to come up with different products in of serving our female fan base, which is as diverse as you might think. We feel like in year five, we are just Getting Better and better making sure we have products for all of our fans so they can style and where their fashion in individual way. Tell us the numbers in your sails. How do you break it out . How much do you contribute to the overall revenue of the nfl . Certainly part of what is known at the nfl as business ventures. Our Consumer Products, the great thing is there arent casual way seven connection with the team. It is much more of a fan service than we really look at it as a revenue opportunity. Being that it is a connection to the fans, as i have been talking with owners this week and others in football, football has taken an image hit with some of the headlines lately, whether you talk about criminal activity or domestic violence. Has that affected sales at all . Fax no. Our sales are trending exactly where we anticipated they would be. We are lucky our fans connect with their teams in many ways. Not only do we service our female fans, but some of the learnings we have gotten from what we have done in the womens area, we are now taking over to a mens lifestyle platform. Using some great ambassadors like our former players. It has now extended into a twee ns and junior area. Targeting 1016yearold female fans. We have learned their are a lot of different ways. Much fear theo nfl Senior Vice President of apparel Consumer Products. We will be back in two minutes. Futures indicate stocks will open higher. The s p just below its alltime record. Important jobs numbers are out in just the last hour. Initial jobless claims rose last week slightly to 3002000 claims. Services at 2004000 jobs in august. Employment at that level is a little bit below what economists had estimated. In the meantime, a big surprise out of europe. The European Central bank taking steps to jumpstart economy. And inflation, and other japan scenario. The ecb will also start buying acid backed security. Asset backed security. In the meantime, this is the press conference going on live right now in frankfurt. Mario draghi, the ecb president , speaking to the press on this surprise move and the further action he has taken because he wants to stave off any recessionary concerns in europe. For more, i want to bring Olivia Sterns, who has been all over this story this morning. Markets have been on the move. The. S. Equities surging on move, particularly banks. Benchmark Interest Rates across the board have been crushed interestrate spoke further into territory. Economists who had in fact made those calls in the past couple of days. The numbers out of europe had become so much worse. The signals to a mario draghi feels he has his back against the wall. European growth stalled out in the Second Quarter. Inflation is less than one quarter of what the ecb is looking for. Keep 3 10 of 1 . Has really stalled out. He is trying to respond. Risks remain to the downside. In ecb lowered its forecast 2410 2015. The question is if any of this will do any good. Think of this as a cap toward a more powerful stimulus. A he does not have to do fullscale maneuver like the fed . Lets exactly. A lot of questions about whether or not they have the political license to buy up bonds. Germany does not think so. This is a simple Asset Backed Securities urges. It is a Bond Purchase Program and it will start in october. Mario draghi will not detail the amount but it will have a sizable impact on the ecb Balance Sheet. To swell the ecb Balance Sheet just the way the fed does, 4 trillion dollars, because he is trying to get liquidity going, trying to get lending into small and mediumsized businesses in the euro zone they have artie tried a lot of things and until now, it does not seem to be working. Borrowing costs in europe at these levels, the tenyear trading below 1 , the twoyear in negative territory, you have got to wonder what pushing rates even lower will actually achieve, if it will actually get so much, Olivia Sterns on the Market Reaction and the announced is on the east the belated is. Bring anyntinue to headlines as soon as they cross from the press conference. Live on our europe channel right now at bloomberg. Com. You can watch it wherever you are. Back here in the u. S. , moving and shaking this hour, the whole is coceo is trying to get rid of the grocery chain highpriced paycheck image. He has been lowering prices, especially on produce. The result, here in new york, a basket of 97 items at whole foods costs less than the same basket at another chain. Whole foods was also cheaper than two other Grocery Stores and Pizza Delivery Service fresh direct on prices. Have a prices themselves. Whole foods cut its Sales Forecast in july and shares have fallen 32 so far this year. The all important jobs report is due out tomorrow. We will have complete coverage, including white house reaction from jason furman, the chairman of the National Economic council and analysis Bloomberg View columnist and former pimco ceo. Tomorrow. It will be a big show as we cover the job stayed alive. We begin we continue to focus on american job data. The newspaper business. Fulltime employment as nick at newspapers has been on a steady decline, falling 6. 4 in 2012 from a year earlier, leaving the industry at 38,000 jobs. It is the lowest level on record and about to get lower. Usa today being spun off with the rest of its publishing as 70ss, it fired as many employees. Half of them from the newsroom. This is all according to a person familiar with the matter. Joining us for more is a Media Industry veteran, the, president , and ceo of a company which recently announced they ares inning off and merging a newspaper business with journal communications. In the kind of following trend here. Rupert murdoch finally deciding television andon movie assets. Are you glad he spun this off . Yes. It was a long time, and a very tough decision. It is a legacy business. Am a former print journalist as silly, i work in newsrooms. It was a tough decision. If you think about it, it is an industry that really needs more consolidation. It has got to find a way to grapple with fixed costs here at a hugeaudience cant audience and a lot of revenue. A high cost that is got to be dealt with. Probably regional consolidations and things that just have not been done in that business. You have been in the print business for so long. Tell me your tenyear forecast. What will we see . Tenyear and things forecast them you will see more consolidation and more regionalization. It is kind of surprising. Hopefully not more layoffs. We will see what happens. Tim will be the ceo of our Newspaper Company and that will be his call. Especially investors, they forget newspapers is a big manufacturing business, big buildings. A high fixed cost. When you look at the numbers, you see Digital Media and their rise. They added 5000 jobs. Jobs, theycutting added 5000 over the last five years. Some of the biggest employers now, vice media, huffington post, buzz feed as well. When you look at those nec billiondollar valuations, do you think it is out of hand . Evaluations are rich and it makes it hard to invest. We are an aggressive digital investor. Most of the hiring we have done in the past five years has been on the digital side. We have hired hundreds of new Digital Media employees in the past 12 months or so. We purchased a mobile news network. A great opportunity, but evaluations are pretty skyhigh. It is a great opportunity but think about that. 38,000 employees in the newspaper industry. About 5000 or a little bit more than that in Digital Media. It takes a lot fewer people to produce the same amount of content that it takes for newspapers to produce that. The content production is about the same. The difference is the distribution networks. With the touch of a button, you distribute across mobile networks. Newspaper takes trucks and delivery people going to every single household in the neighborhood here it is more. Aborintensive you are consolidating tv assets. Do you see more sharing of content among television stations, morris consolidation there . Are they going down to one station per city . Sooner or later, there are probably more stations in a market than can be supported. It is an opportunity for many of us in the business already. You have seen a ton of consolidation in tv but that is still really not a very consolidated business. You look and you have ownership caps that you cannot cross. We will be the fifth largest independent tv operator in the united dates. Companies own three stations in very good markets that still represent a lot of opportunity. More consolidation from the advertiser point of view. They have got fewer places to put their ad dollars. That is why you are seeing advertisers now really sort of embracing an online world. From theot a chart amount of dollars that will eventually go to digital versus television and newspapers. It is hard to argue with how powerful digital will be. In 2018, 30 7 , it will be the leader in grabbing ad dollars. How do you get a piece of that . Todayget a piece of it and that is a big focus of our investment strategy. Kinds of Digital Brands and networks, we take advantage of that opportunity. How . Lets say four or five years from now, when you see more of the dollars, how do you make sure you continue to grab that share . At all our local markets, we have dedicated Digital Sales teams, dedicated Digital Products for digital only consumers, not just for those who might also enjoy some television. We think it is a huge opportunity, one we are directing a lot of resources toward. This is different from what i hear. When i talk to tv executives, they look at statistics and , not just with advertisement dollars, but they see their old Business Model being completely disrupted. Are 25e among people who and younger, they are not even tuning into tv anymore. They are watching on their phones and tablets. That scares these tv executives. It should. Television is one of the greatest businesses ever created. A Fabulous Business. For those of us who own it and investors and for consumers or the consumption of television is just phenomenal and really continues to grow. More than one thing can be true at the same time. Tv can be a Fabulous Business and additional can be a good opportunity. Millenials continue to flock to us and our brands, but primarily on digital platforms. Thank you for joining us. We really appreciate it. It is not easy. We will talk to boston stoked about that in a moment. We will be back. It was a lively summer for the mba. It started with Don Sterlings controversial racist remarks. Owner think asan he watched all of that unfold in the last few months . He is standing by at the bloomberg sports business summit with stephanie ruhle. Thank you. We are coming off the summer of sterling. What has that been like as an nba team owner . Obviously, that was a very disappointing event. I am very proud the way adam silver and the owners pulled together and dealt with the controversy. They did the right thing and quickly. The clippers now have a great future and a new owner. We are excited. I think we will move on from that. Request what is your advice for Steve Ballmer . You had your team win a championship within five years of you buying. You have got to have a longterm plan. The worst thing owners do when they come in, youve got to win overnight, they will get old players that have marquee names that are really not great players. You have got to be patient. He is harrying inheriting a good team. I think steve is in a great situation. That is a team ready right now. Were you shocked when he saw the Sticker Price . It is interesting. Certainly more than expectations. It was not just one anomaly. People stepped back and said sports franchises are both great investments and community investments. They are fun. People are paying good value for it. Europe, all the games being shown over there. There is still more in the future. We are not even at the final stages of that. When did that change . People felt like, they are vanity rod just, passion projects, moneylosing entities. Savvyid it turn to become Business Investments question mark were saying, wow, these are amazing deals. Like any industry, it started out with smaller entrepreneurs and a familyowned business and it grew and i think they did a fantastic job. You have folks like David Stearns come in and really drive it. You have seen a huge trend where people will only tune into live content. You see live shows, sports shows. That has driven the economic value this morning and it is now going global. Why does it make sense for so many team owners to build extraordinary new arenas that cost hundreds of millions of dollars when the true value of teams you are trying to win a longterm legacy. The reason Boston Celtics draws expenses we have been doing that and have won championships. You want to build a championship team. You need the best facilities and the best coaches and that costs money. Your spending for the longterm. Lies Bret Stephens your guy . He has never been an nba coach. Back with the clippers and there was a list, that had Bret Stephens at number 1, 2, and three. Yet watched him for many years. Brad understands the game and the psychology of players. He was the best guy for the job. We met him and he quickly agreed. We are very fortunate to have him in boston. He is off to a great start. Good luck. Hope you have a great season. Thank you. A bank capital managing director, owner of the ball didnt the Boston Celtics. Owner of a sports business summit, including Camilla Anthony and the opening bell is coming up. Welcome back. It is 26 minutes past the hour. Bloomberg television is on the markets. A look at futures right before the final moment before the opening bell. Equity futures are slightly higher. We had two these of data that were not that great. Jobless claims higher and an adp coming lower than estimated. We are on the markets again in 30 minutes. Count down to the open with the top 10. The only stocks you need to know about today. Me thisterns is joining morning. Lets start with number 10. To buyraded homebuilders from neutral. The company is wellpositioned heading into the next age of the housing recovery. Price target to buy six dollars, 20 a share. H r block. You can blame canada in a good way. H r block. You can blame canada in a good way. The First Quarter loss is lighter than estimated but revenue actually beat. A fiveday extension of the boost in revenue. Shares are up more than 15 . Down o jpmorgan shares. A price target of 51 per share. What the heck is that . That is so cute. It is very cute. The stock is up 137 percent in its ipo. A new product for google glass. It does not have a display like glass. The wearable device analyzes data from users surrounding and transfers it to a smartphone. , it is a a display little easier on your eyes. A free market. The top end of its fullyear market forecast, the coal industry, as well as little unrest in the ukraine, joint third of a quarter earnings and revenue. Also analyst estimates. It is your kind of company. It is. Beatcondquarter profits estimates. Results were driven by strong sales. 9 . Shares are continuing to decline in the premarket. Yum brands. China. Op in a drop in china. Kfc and pizza hut chains were hurt publicly. Planning to take legal action to recover from damages. It has been getting hit quite a bit in the last 12 months. Absolutely. Number three, a company reporting better than estimated earnings. Confident in the opportunity to grow in the business. Software. According to people with information on a matter. The board started reviewing Strategic Options last month. At number one, tesla motors is finally ready to announce its gigawill place factory. It looks like it is nevada according to people familiar with the matter. Executives are traveling there this morning and will be holding a press conference in the city. We will dive deeper into the announcement in a few moments. Some of the naysayers here it i know it is one of your favorite subjects. The lithium iron battery. It is true. Only one operating mine in the whole united its been it pens to be in nevada area so theyre going close to the source. Back open this morning, we continue to scrutinize dress jobs data. Adp undershooting estimates and jobless claims picking up here it basically says what . More of the same in the jobs market. We are joined with blackrock. You opine about the jobs market yourself. There is slack. The question is, when do we get out of that and what does that mean for the markets . An improvementg in the labor market. Over 2000. Ve printed what is missing are primarily wages. Very little wage growth. Unfortunately, this may have to do more with structural headwinds fanned cyclical recovery. Dont you think there is a shift . Of a structural inflationnt see pickup likely have in the past . This is one reason we look at data. E economic most of the jobs data has been better. Household consumption and retail sales has been missing. It goes exactly to your point. If wage growth does not pick up, zimmer consumers will draw further in their savings or they borrow more, retail sales are going to disappoint. We have seen that even as the overall economy has gotten stronger. I am puzzled sometimes why we the jobs to permit is important, but why it is is it is important. We have seen a huge rally even in the jobs market here and why does it matter . Tear thele of reasons first of which is that consumption is still the biggest part of the economy. It represents almost 70 of economic activity. Means araises, that stronger economy. The second reason, and this goes a long way to explaining in the last five years, is the fed watches the jobs market. As the jobs market goes, it will give a very good indication of what the fed is thinking and when they will start Interest Rates. It is interesting if you take a look at the vix. It has done nothing. Under 13. When we get this kind of squishy economic data, we are not seeing a huge wage recovery there. Fraud activity is not picking up. What gives . Fed. E simple answer is the if you look at volatility, it is very interesting. It normally follows monetary conditions. Zero,nterest rates at very tight, you would expect volatility to be low. This is exactly what happens. My guess is, we get into an environment next year where the fed gets closer to raising rates, where at least the margins, they begin to tighten a bit. That is where the volatility regime starts to change and it may not spike have to those levels in 2008 or 2009, we hope. At the very least, it is likely to normalize back in the high teens or 20s. Considerings raising Interest Rates. The effect opposite story this morning, mario draghi, the head of European Central bank cutting Interest Rates yet again. A big surprise. Also announcing a simple asset backed program. It looks a lot like a stepping stone to quantitative easing quantitative easing. That was exactly what was done to feel this. Why the u. S. Instead of europe . Which asset you are speaking of. European stocks have rallied today. Where you will see the biggest advances is on the currency. Advances in the fed and the ecb and the bank of japan. The dollar will continue to strengthen for the remainder of the year ended 2015. Thank you so much. The global chief investment strategist at blackrock. Thank you to Olivia Sterns and alix steel. As olivia was just talking about, i want to get over to guy johnson, the polls anchor who has been at the press conference monitoring the press conference, coverage out of our london office. Tell us what you heard from mario draghi. We heard mario draghi in some not saying this is fullblown qe and maybe we will not get that far in the midterm. We have the scheme they will be doing, the strategy they will be putting in place. Security purchases will include the Balance Sheet quite significantly, and they will be buying covered bonds. It is not the same as the previously announced policy. It is a different one. Not everybody is on board with that. The germans, i would argue, probably are not. This was not a unanimous decision. A big step forward for this ecb. Fullblown qe is tricky. It is very difficult to do this in an environment where your hampton by the initial rules set up. The assetill push backed security story a little harder and we get less fullblown securities. But very few people had actually predicted this would happen. What changed . What changed in the scenario for the ecb to want to take some action today. People were expecting it, just not yet. It is a timing factor here. It will probably have changed at the economic forecasts. You also saw him announcing a lowering of inflation projections years out. What also came out of this as. Ell is this is it it is as far as conventional Monetary Policy goes. We are now moving in from the ecb into unexpected waters. Things have changed. The data has changed. When the facts change, maybe the outcome needs to change. That is what we saw a little bit of today. Thank you. Discussing,een teslas factory may have found a home. A project that could bring 6500 jobs. Analyst is pulling cold. Ater over teslas projections tesla has reportedly chosen a home for its giga factory lithium battery. Aey are vying to host facility which could create 6500 has one seems nevada with an announcement expected later this afternoon in carson city where the governor will be present as well as tesla officials and elon musk will be there. Is the huge undertaking going to hit its goal of half a million i to be produced at this facility . We dug through the demand and published a report higher highlighting the risks. Great to see you this morning. This report was making the rounds yesterday. There are very few bears out there on tesla. Everyone seems to be buying into elon musks position. The biggest impact is what . We are not totally down on the giga factory. When you look at what the estimates will be for electric vehicle sales, around 500,000 vehicles. Will beely case, it around 40,000 vehicles. There are a few reasons for that. Most manned is coming from the model three. When you look at where it is priced that come it is around 3540,000 dollar price range. That is squarely in the composition of the audi four. The bmw three series. Those have well understood sales patterns. Around 400,000 units per year for each vehicle. The tesla would have to have at least hit that target. They will probably have to be disruptive to those three models. On the 2020 timeframe, we think that is not likely to happen. Globally, we are talking about 440,000 vehicles. It is possible it could be a little bit above that. Tesla will have to take a significant share of the entire market share. The way the run weight the run rate is now, they have to have significant scaling to really hit that. Going from three over two years to 35 is quite a jump. Elon musk himself, he said this at a Conference Call in the last quarter that it is not just about making batteries for cars. There are also stationary storage as well. They believe someone something produce their willpower businesses or homes. It is not just about reaching this target of 500 cars. Absolutely. They have a partnership and they are able to use these sources as their own. City pioneering this whole storage concept. Absolutely. We think the market size will not be long enough. Light commercial, these batteries will probably only represent around a few ofawatts, 1 10 of capacity the giga factory in 2020. Maybe if you go 5218. What about other manufacturers in being able to make batteries for them . That is being discussed. Tesla has increased the Energy Capacity of its cells. Fundamentally a different format from what you see the nissan leaf using or the next generation prius plugin or the chevy volt. They are using a pouch format. It would not fit. Automaker product cycles around five years. The nextgeneration already has been committed. When you look at this time, you will not see demand come from another using teslas batteries. What would make you change your forecast and your mind on these numbers . If you look at where tesla , overall market demand, prices of oil could influence it. Stations. Absolutely. How china plays out here it it has been talking about policy there. We are forecasting it to take over 2016. As soon as tesla hits 200,000 vehicle sales, the tax credit goes out. That will certainly impact demand for a model three. Great to see you. Thank you so much. Speaking about electric and driverless cars, driverless vehicles may come along with their own problem. A growing concern hackers could hijack these cars and use them as remote weapons. The fbi warned of this in a report published in a british newspaper. Law enforcement says it would be easier to monitor cars. Mercedes and pulse wagon are among Companies Developing self driving cars. Much more is ahead for you. The European Central banks. We mentioned taking steps to jumpstart the economy. We will look at the country having the most problems on that front next. Time for the global outlook. The European Central bank is looking to jumpstart the economy. In a surprise decision, the benchmark rate was lowered to one half of 1 . The country having the biggest problem these days and could use that help, france or the europe the euros secondbiggest economy is the socalled sick man on the block. Olivia sterns joins us with more. It should help there to comes back to how much Monetary Policy and how much they can accomplish without taking the forms that need to happen. Leaders, it is the president of france who has truly been dragging his feet. Big structural progress in france. Have ad they now ng leader who is making everyone is making the right noises. Up. Ployment has gone it is up by about half a Million People out of work. There have not been two consecutive quarters of growth in the 2. 5 years since he has been office. Hurting his popularity. Popularity ratings are over 20 . One of the reasons why he reshuffled his cabinet last week. Been on for politics in france. You mentioned more probusiness friendly. How so . There was a fight over austerity measures. The guy who opposed General Electric and got more concessions out of them, he was they wanted to do in terms of cutting the deficit is going to kill the recovery. , manual. Uy got the job he is 36 years old, and other very young guy. He was a former investment banker and is said to have had the year for a long time. The said, he helped craft economic policy. Interesting to see what he can do. Crucially, he is only been in the job for about a week and has already raised the specter of the 35 hourvive workweek. He is making the right noises. Lets see what happens. Is that what they say . Ok. Thank you so much, Olivia Sterns. In port andd all jobs report is due out. We will have complete coverage, including reaction from jason furman, and also announcements from the former tenant coceo. We will also have a ceo roundtable with the head of dominoes, con ed, and the founder of staples. Is 56 that the hour. Bloomberg television is on the markets. We are about 30 minutes from the trading day. Lets get you caught up on where stocks are trading. Equities are moving broadly higher on moves that myra markets,urprised cutting all of the benchmark it rates, going further into negative territory, sending stocks higher. He euro funding plunging the First Time Since july 2013. Also big news in european bonds. Joining me now on what this means, joe has been following this all morning. This was a surprise interestrate cut for mario draghi. What kind of reaction are we seeing for equity markets . Last we saw in equity markets we will last half hour, be seeing a lot more liquidity in the market and banks will have more equity in capital. It will help people allocate equities. Seeinghe reaction youre suggesting investors will be surprised by this . Think people were surprised by the fact people we went to negative deposit rate. We have also seen an assetbacked security program. Aggressive quantitative easing. Be you are expecting something. I do not know if they expected some the to this degree. Only mario draghi knows if they are expecting more. I would imagine if he doesnt get the intended result right away, we may see hints at it. He does not like to do things right away. He likes to hit added weeks or months. It looks like this might be a stopgap before a more fullfledged quantitative easing. Interesting to see mario draghi signaling that there was unanimous agreement that they remain committed further to unconventional measures. Also come a decision to cut the Interest Rate was not unanimous. Some Board Members of the ecb wanted to do more in terms of Market Reaction. What sectors are feeling the biggest boost . The big boost in a lot of energy and the banks and those more directly tied to liquidity in the market. Might see a pullback in utilities. You said the overnight rate was the biggest surprise. What is the impact for the market . Is there a risk this could increase financial instability . The right now, what is it . 1. Incredible. You have to pay the ecb for the privilege of stashing your cash there overnight. Research analysts who have gone on record saying we will see increased volatilitys. It is time to put up or shut up and maybe the market will do that. We didff the bat today, not see much of a reaction. It spiked up and we have early sign ofn volatility. By 1. 5 . Toxx 600 up the biggest gain coming, 1. 8 , 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. Youre 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. A