It is a monday here in new york city. I am Erik Schatzker. I am Stephanie Ruhle. You are indeed. Butver the weekend, not one two producers celebrated their birthdays and neither one invited eric or i to celebrate. What does that say about the Market Makers team . We are going to begin the show with the top stories from around the world. In hong kong you have probably seen the footage already, thousands of protesters jammed the streets and battle with police. Police used tear gas and pepper spray on these protesters, who are angry about chinas plan to control the 2016 leadership election and what they say is a broken promise when hong kong was returned to the chinese. Ears ago another shakeup at american apparel, the struggling clothing chain. An interim ceo has been named. He has had other in terms jobs for retailers. American apparel is looking for a permanent ceo to replace their ousted ceo. To a persong familiar with the matter Investment Bankers are barred from trading individual stocks and bonds with Goldman Sachs. A formerelated case regulator say she was forced that she was fired say she was fired. Secret tapes were just released. I thought goldman could manage all of its conflicts. Maybe not so much. Topics, Japanese Telecom giant softbank may be dipping a 10 oh into the american movie industry. Softbank is in the official talks to buy Dreamworks Animation. Even if these talks do not lead to a deal it is yet another sign of the outside ambition of softbank ceo. Alex sherman is here with more along with Senior Analyst paul shall any Senior Analyst paul. I would say it is less than 5050 based on my sources at this time. Is a great move for Dreamworks Animation to be acquired by someone. I dont know if it will be softbank. I know paul has some thoughts on this. It may make more sense to join up with a new studio. It is going to depend on what Jeffrey Katzenbergs idea of his is going to be. Whether or not he wants to run that. If they are being bought by softbank there is an obvious guy in charge there. He has a 300 year plan and whether or not jeffrey into that plan is probably up to Jeffrey Katzenberg. We will see if another buyer comes along. There is not another buyer yet. This raises a very good question, why should Dreamworks Animation be in such a hurry to sell itself . Their Business Model is very tough to pursue. If they are a standalone production studio. Most movie and Television Production studios are housed in these Big Media Companies like viacom or disney. The movie business is a hit driven business. You dont want your stock yell you win with whatever your related your stock yo whatever your latest release was. Want to get softbank and the American Media universe, is Dreamworks Animation the right by . Or should they go big . One of the sources that was close to softbank says, there are talks but this is a drop in the bucket for softbank. Almost to the degree of, this is what you want to waste your time on . Does allowanimation for global reach for softbank. Softbank owns a japanese wireless carrier, it can use dreamworks content in bundled packages. It can bundle up with sprint in unique ways. If putting content together with distribution is the holy grail, and we have all been persuaded that it is, why go with something a saw with something as small as softbank . He is thinking big. To my understanding he is of u. S. At a wide array media assets. Some of those are bigger than Dreamworks Animation. This is a deal that theoretically could get done and a big problem with some of these other u. S. Media assets is they are family controlled, they have a dual share structure. This may be an opportunity san to dip his toe into the u. S. Media business. He may not want to jump into the deep end. We saw a lot of the asian investors coming in. Look at the studios in the 80s and 90s playing on the growth of the u. S. Consumer market and those did not pan out. Softbanks appetite, given assetse and given their in the alibaba investment, they can go big if they want to. And dreamworks needs to play here. You are a standalone movie studio chances are you are looking to combine with a larger studio, a big company like disney. Potentially the smaller studios like lions gate and mgm, which are in similar situations where more scale could help them. It is possible those companies could look to each other. 40 in five years. Dreamworkst is why animation sense from a valuation standpoint. Their shares have struggled so you could theoretically buy it on the cheap if you think it is worthy of your portfolio. I think the plan always was, if i so my company it will be to a company where i have a path to the ceo role. Ont think like you want he wanted to be the ceo of disney, that did not work out. We allot the scale thought Jeffrey Katzenberg wants to play in. Thank you so much. Limerickney is a intelligence and Bloomberg News reporter alex sherman. Is a Bloomberg Intelligence reporter and Bloomberg News reporter alex sherman. Of the government controlled oil company may have some trouble reaching this oil because it is partnered with exxon. Ryan chilcote traveled to the site for an exclusive interview with the ceo of ross net of rosneft. Production is going to start here in seven years. Not moverket does faster than that we can speed it up. Can you tell me what price of oil will need a return on iron investment . It will be enough to provide our company with a standard return. Nowmature fields in use around the world are declining. This oil is high quality. Market should definitely give us the kind of price that justifies our investment. To seven years we will be talking about 140 to 150 per barrel. Time will tell. Where do you go from here because this obviously was a. Oint project with exxon exxon is now barred by the u. S. Government from drilling in the arctic. What happens next . Well do it on our own and necessaryact the technology and partners who do not have any limits on cooperation. But we not stopping our work with exxon. Operator is our joint venture with exxon. And we are not planning on chaining unchanging the venture loss ownership structure. The ventures ownership structure. Continuing to drill next year . We will continue to trail next year and the year after that. Never talked to the media, why is he eager to get his message out now . I think because he has a carrot to dangle in front of exxon and the obama administration. He says they can go it alone, i dont think they would like to go it alone. That itt to point out is in exxons interest to stick around. Exxon has more acreage it can trillion in russia than anywhere in the world outside of the United States. It really could use its oil. This is much something that may be very well heated by exxon and the obama administration. Away. Nctions may go dont go sanctions away and the exxon isnt back in the next couple of years, where may they have to turn . Major Oil Companies are american or european . They are all subject to these sanctions. Ask if he was talking to the chinese about filling in for exxon. I thought it was interesting he batted that question away. The onlyly would be oil company out there. Im not sure that the chinese have the money for the project of this scale. The Russian Arctic cost about 400 billion to develop an. Maybe they could go it alone. If they want to get the kind of scale that everyone likes to , and theh these days timescale they would like to see, then they would like to see the sanctions go away. Them a Ryan Chilcote live from moscow. Am a will have more on russia in just a few moments to relations between russia and the u. S. Are the worst in years. We have an exclusive interview with the Russian Foreign minister. And who sides with these regulators anyway . Reveal starting with behavior by bankers overseas. This is Market Makers on bloomberg television. They are being called the secret goldman tapes, recordings made by a former Bank Examiner stationed inside Goldman Sachs. She recorded a conversation she had with former fed employees who were supposed to be regulating goldman but who instead sounded like they answer to goldman. The case confirms what so many washington has been coopted by wall street. A senior fellow at the Rutgers Business School. Is it true the watchdog is in fact a lapdog . Certainly there are major cultural issues on the regulatory side. In the course of 20 years we have seen the new york fed come to see the world through wall streets eyes. Unfortunately this is a prime example of the way we are falling down. Youve always always have had the big banks behind it or partnering, it seems. M of the new york fed tank fed Bank Regulators regulation was easier back in the day. It was a qualitative analysis. The rule of bankers have changed. They have to go in and look at models and ceos are thinking about the risks. Progressivelyme overmatched. I think that has a lot of negative cultural applications within the fed. A difference between being overmatched in terms of coopted, and being complicit in answering to Goldman Sachs. Thebviously are not getting i whole picture. Tapes we have seen suggest that is going on. I think what is happening with the new york fed is the most technical regulators have left. People arend more politically substantive. I think over time what do you mean political . Politics off the the institution itself become the driving force and there are a lot less confidence there is a lot less confidence and aggressiveness when it comes to wall street. The opposite . T be since the crisis wouldnt you think the regulators would be on it more than ever . Them a i think what doddfrank did i think what doddfrank did is right up the rules and failed to regulate them. Are regulators who before the crisis were already falling down on their job. You say they are not they do not know how to do the job at hand. I think we should stop thinking about regulation as the answer to our problems. The better approach regulators may always be stationed inside Goldman Sachs but goldman is small, relative to citigroup or bank of america or jpmorgan. We all focus on goldman has high cachet. But if it is too difficult carmen cigar at seems to have figured out when goldman was not doing right. This is what i understand you are saying if goldman is too big for them to get it right what does that say about the larger banks . Big to failhave two banks. Those banks are 40 bigger than they were in 2008. What we need to focus on, rather than just trying to change makeation, we also need to sure the consequences of faulty regulation do not come back to bite us. What we have seen instead is through a lot of policies in the government and a lot of not pushing back hard enough we let these banks become more powerful. It seems like the argument here is those inside the fed were trying to please the Senior Management at Goldman Sachs. Can we say that carmens intentions were good . Carmen was denied a job by goldman three times. Is it completely fair to say she did not have a motive . Goodthink that is a question. I do believe people inside the fed, for the most part, remain smart and wellintentioned. Cultural problem in which things have gotten out of control and they really are too big to fail has cultural implications. If anybody should be a lot to fix this it is bill dudley, x Goldman Sachs and president of the new york fed. He is the guy who ordered the into how it was that the new york fed how it was the new york fed could have allowed the potential crisis in the first place. What i would argue is within the new york fed, it is similar to what happened to wall street tanks. You have a huge disconnect between the management and the rank and file. This is the problem. It sounds great in the press to give speeches about how the culture has not changed. Words are not enough. We are not seeing management push enough action and we are Goldman Sachsr chief economist running the new york fed. How much are you going to push back against that world . He may. Just because he used to work at Goldman Sachs doesnt mean he is there to get his breadandbutter by them. Mi he left Goldman Sachs with a Million Dollars on the table. You have a lot of people who are seeing the world too much through wall streets eyes. Phils roleichael in all of this . Them a i worked with michael phil from 2001 2 2000s i fromd with michael phil 2001 two 2006. Help changeht in to the culture. That did not work out as well as it should have. I hope we are not condemning him particularly too much. A broader cultural issue that we need to be talking about. Thank you. He is a senior fellow at the Rutgers Business School and used to work at the new york fed. M a pimco investors pimco investors are with drawing their dough. Pimco is racing from the fallout of bill grosss departure. Take forhat will it the u. S. And russia to improve relations . We have an exclusive interview with russias former minister russias foreign minister. Stay with us. Live from bloomberg headquarters in new york, this is Market Makers with Erik Schatzker and Stephanie Ruhle. Good monday morning, you are onhing Market Makers bloomberg television. Bill gross leaves pimco. The firm he cofounded to run a tiny fixed income. What is pimco without the bond king and who benefits from its distress . We direct our question to michael. Good morning to you. Pimco better off or worse off without bill gross . Is ane might think that open question. The main thing in our minds is most of the team that backed him and contributed to his success in the longterm is still in place. The firm and its main strategies are still run by very seasoned Portfolio Managers and each one remains backed by payment resources. Why does it seem that investors are so spooked . Part of the reason investors are spooked is because the headlines have been spooky. There has been much turmoil over the past year. Of the biggest sources of that uncertainty has left the building. Shouldnt pensions and real investors actually no pimco and the way they invest more than simply a bloomberg headline or two . That is true. We are getting some votes of support for pimco. Any egg gatekeeper is going to take a close look at the Management Team stepping in behind bill. So far, in our view, those teams have remained stable. That raises a question about the role of pension consultants. Many of these consultants help Pension Funds decide where to allocate investments, into which firm, into what funds. Heres an excerpt sent out i would of the biggest consultants of the pension fund on friday. Can you blame Pension Funds for being anxious about the impact of bill grosss departure . If consultants like wilshire are putting out notices like that . Organization with one opinion. Each organization is going to come to his own opinion, hopefully taste on thorough analysis. Could Portfolio Management get out of control . A pm at pimco and were losing trades, right now would be the perfect time to dump them and take your losses, because you have a free pass as well. Thats not our impression of how the current portfolio Management Team behind total return and other funds are reacting to this development at all. I haveave seen seen estimates up to 30 of the flowing out of pimco. What we have seen in terms of outflow for the funds, it is tough to handicap what the future outflows may be. The fund is held by individual investors. In terms of handicapping the future from here, folks that disagree with gross or did not like the turmoil at pimco, two of those reasons for taking the money out of the fund are now resolved. Should that be a reason we see inflows . If bill gross has spot that hase caused a lot of angst, could this be the reason why the existing pms and management are going to flourish . , that is a great open question to raise at this point. The flipside of that is if pimco has become a more stable investment Organization Going forward, that may indeed make people may make people attracted. Investment process by and large remains intact. All of the attention is on bill gross. Is it possible there are other institutional troubles . I dont know how much of a hand he had in the pricing of underlying securities. Hisur understanding was departure was not related to the sec probe. The first firm sec has approached about bond pricing issues, nor will it be the last. That may be cause for another discussion. From our perspective that is more of a bond pricing issue. Is still a lot of dust in the air. How long will it take before it settles . We do know what the true impact is on grosss departure. Is the money going to go to blackrock . Is it going to go to jpmorgan . It is certainly something we will be watching. The spotlight is on pimco to deliver. One factor here is gross did not leave with the team behind him. Difference from a couple of other situations we have seen in recent years. Our understanding is the hisation he is setting up skeletal in nature. We will be watching for personnel the partners. Personnel departures. There is no proven fixed income managers with very stable investment organizations that could stand to benefit from this. Think they are overstating the situation that is happening right now . Bill gross is the biggest seller of protection in the market. Do you think it is the street trying to push hard against the trades and make something out of nothing . Hard to say. When you sift through it and try to parse what the real ramifications will be, everybody shots at pimco. People react to big sellers. It would not be surprising of those things were going on in other trading desks at this point. Is there anyone in particular who you think is a flight risk . Not at the moment. Of the people we would be concerned about leaving were the folks named as cios of the firm. From that Vantage Point those are the first people we will be watching. We have a good sense of who are the key players and we will be watching to see if they stay or go. M a good to see you this morning. Good to see you. Up, it has been called another cold war. Russians former and russias foreign minister talk about the chilly relations between their countries. Relations between russia and the u. S. Havent been this bad since the cold war. The standoff continues and these two countries must Work Together on other global matters, Security Issues including iraq, syria, and i ron. Olivia sterns spoke with the Russian Foreign minister. We never did anything which would prevent us from cooperating with the United States. It was the United States who froze the work of the president ial commission out of 20 plus working groups. There was a working group on counterterrorism. Counterterrorism faction, which was endorsed by the council, was frozen by western by the west. It is up to the United States to understand where it interest is. That thewidely agreed be defeatede cannot with airstrikes. It is going to take boots on the ground. Whose troops should those be . It has to be done through the security council, in consultation with the Syrian Government. What should the role be of russia in flooding the Islamic State . , not should be, what is the role not should be, what is the role . Been providing necessary weapons to iraq, to syria, and to other countries in the region who face a terrorist threat. Egypt, lebanon, and others. We will continue to support them because they must be able to counter this threat. How close are we to a nuclear deal with iran . We are moving into were moving in the right direction. Deal. The 5 is two or three very difficult issues. Difficult from the point of view of making a politicals that political decision to compromise on both sides. Making a political decision to compromise on both sides. China has not rejected the consultations negotiations. They will continue. So i am cautiously optimistic. Is the fighting making it more difficult or perhaps easier to get a deal done with iran . I think it is a different matter. Iran should be part of the efforts to fight iso fight isil. To not invite for corporation is a mistake, just like it is a mistake not to consult with the Syrian Government and not cooperate with it. Iranneral i believe that should be more recognized as a regional player. You cannot resolve the Syrian Crisis without i ron, you cannot resolve many things in the region without taking into account iranian interests. Now we can be in the on this conference with syria. Iran was exclusively left out. That is not helpful. I think americans recognize that at some point, sooner than later, this has to be recognized. You can watch the entire interview with foreign minister sir foreign minister sergei lavrov. We will be speaking to their ceo. It has been almost a year since sean combs launched his music project revolt. That it the opportunity was no espn music, no bloomberg of music. Revolt will be that. It will be the number one name in music. Am a big challenges remain, namely gaining viewers and advertisers. Here to look at their outlook is keith the last time we sat down you said this was a network for true music fans. Our music fans tuning in . They are not only tuning in we are getting a much more love from the artists as well. They see it as a place to interface with us and find out ways to get their unique message out to their fans, to create energy, not just television. It make ay of difference unless you get your network into more homes . Last year we thought revolt was going to you have to be patient and there is more than one way to reach the fans. The fans that we are dealing with, young people into music, they are working through their devices and everything. What you try to do is mention you keep delivering a good product but also at the same time work with your Cable Partners to get on the air. What is take to be patient . Them money. It takes money. It takes dedication to task. You cannot just say we are going to abandon music, music works and music works on social media, on television, everywhere. We have to work hard. We need to put the question for you the question to you, the cash crunch paid any new business, when you try to get it going you have to find ways to not be in a cash crunch but use your resources judiciously. Where are you going to apply them . You are doing less of some things . We are here to break news. We just signed verizon for the first time. We signed a sudden link. We have new distributors as we come on the program this morning. Come october you have a huge event. A live event. The space is getting pretty crowded. Music is going through a tremendous amount of change. You have people here that talk about music all the time. It is unlike any other time in music before. We want to get executives and influences together and artists, people who make the music to discuss these changes. Now you have five different ways. Spotify, pandora, sound cloud. Who has the control . Basically not some much control but even influence. Even our competition is different. You try to find ways to cooperate. Does this build viewership . This holds true to the mission that sean combs in the beginning to be the number one name in music you have to speak to the people who are innovators and the Technology People who are finding different ways to reach your audience. Agreements. Hese you had distribution into 25 million homes. This will at how many . We hope the whole thing will be in the 2 million range. When i think the Music Television network it doesnt seem like a typical fit. We are building a Solid Network with one of the premier celebrity businessman marketers in the world. Have you able seen the advertising that we have . We have fiat, we have beats by trey. We have honda and hewlettpackard. We have done an excellent job in getting top level advertising. Not every single i cant get him on every call he wants to. Everything from working on the conference to working on the programming, he is handson with it. To raise more money between now and the point where you get the kind of distribution that you want, whether it be over Time Warner Cable or comcast, will hybrid step up with new capital . One of the most successful things is having a 1 billion fund in the first place. The right money for what you are trying to do, making sure you are focusing on distribution, then you moved to content. They will invest more. Lets talk about the content you are putting out there. What does your content look like now . We deal with it every day. We try to make sure we work in an environment not like this. We go ahead and make sure we know what is going on. Then we extend that through our social platforms. Dont need him being the one communicating to the audience . He has that aura. We want to work off of that as opposed to wearing it out. More importantly there are a number of great artists out there. It is our job to reach them and make sure they see revolt as a place to come to. I met sean. He has an aura. October 16 and 17. When we come back we are going to celebrate National Coffee day with the chairman and ceo of Dunkin Brands. Live from bloomberg World Headquarters in new york, this is Market Makers with Erik Shatzker and Stephanie Ruhle. Democracy a rubs in hong kong protesters demanding free and open elections battle police. Demonstrators say they will not give up until they get their demand will stop when should advertisers become activists . The nfl posta mistake violence crisis has many brands wondering. We will hear from the agencies find last years top super bowl ad. It seems like every restaurant chain is going after the earlymorning diner. Dunkin donuts is one of them and we will be speaking with the ceo. Welcome to the second hour of Market Makers. We are going to begin with the chaos in hong kong will stop tens of thousands row democracy protesters are on the streets demanding free and open elections. You have probably seen how please have been using tear gas to disperse crowds, but today they have taken a lower profile. Scarlet fu spent several years working in hong kong and this here to provide some perspective. Theres a historic relationship between hong kong and beijing that people dont really understand. About hong who think kong often think about the relationship hong kong had when it was under british rule. Much has changed in 17 years. Officially speaking, have a one country, two systems model which gives hong kong a lot of autonomy. They can pursue capitalist markets and all of that but in practice, things have come together a lot more and the last couple of years. Of late feelple crowded out of their own city by the mainland chinese. Its not just the air pollution choking them but you have the introduction of chinese natural Chinese National education which caused its own protest two years ago. Along with the fact that the stores are taking over every corner and catering to mainland chinese torus and it makes people feel like they dont have a space in their own home. This is a natural outgrowth of that along with the most recent dispute over the democratic elections. Hong kong people want universal suffrage and beijing says no, we will allow you to elect someone we have vetted. A select group of candidates will stop what is the most likely outcome . People fear it something close to 1989. A crackdown. The hope it is that it wont go there. The protesters have identified october 1 as the date to renew their protest. It is the 65th anniversary of the founding of the peoples republic of china and every year they have a big fireworks display. Hong kong government has already canceled that. Does the Central Government have a tricky line to walk . Between what it wants to demonstrate internally and demonstrate externally question mark exactly. Beijing needs to be careful how they does it. In greater china, not just within the mainland anywhere else, they dont want to give anyone ideas. Its a development we will continue to watch but student led protest played a very important role. Presumptive elite and have the ability to gain the support of other social groups. Idealistic,y especially after seeing the tear gas. In 1989, fast forward to 2014. The ability for young people to. Onnect what their impact to be is certainly playing a role in todays protest will stop todays protest. Theres a lot more going on here in new york city. Advertising week is kicking off today. The brightest stars in the industry can together to talk about the newest trends and where the ad world is headed. We have one of those people here with us today, the Founding Member of anomaly. He is here with us for the whole hour. Welcome. Good to be here. Adweek is upon us. What is your message . The message this year get week right its only four days. There is obviously quite a bit to talk about as far as it relates to source as far as it relates to social media. We have the constant debate about what is going on with the younger generation. Millenials on how to communicate with them. There are hundreds of stats to get around talking about the future of this generation. Its going to be a good discussion. How different is the ertising Business Today facebook, other social media, Technological Innovations that was five years ago . Fore have been in business about 10 years, so i have seen it change quite a bit. When thing is you never step into the same business twice. Its constantly changing and its a reflection of what is going on in culture. Make business easier or harder . When you have the amount of change that is going on, especially as it relates to technology and consumer behavior, complexity you see it across the wider landscape of culture and politics and even what is going on in politics. Audience and the amount of technology is changing dramatically. That creates a lot of complexity for markers and media companies. Advertising is about culture and influence, but it is really findings willatic stop it means that quant heads are taking over how easy the messages, whether it be on television or digitally. How it started was interesting. The way we did add by neil Digital Space it began to evolve and its a quest for efficiency. For eliminating some of that human error. You think human error . Isnt that part of what makes advertising so successful . Years ago, they separated Media Planning and buying from creativity. As they begin to do that, the two worlds diverged. These two the two sides of the same coin. You end up having a whole entire Media Business set up all stop almost devoid of creativity and culture that you mentioned. Was that a mistake . Its one of the propositions of our company is to not have them diverge. In todays landscape, to have them converge even more because whats the difference . A great media idea or creative idea question mark if big media is driving the change in advertising, why is it that creative types continue to throw liked qualitative words authenticity . Because it doesnt matter how much data you have. It comes down to do you have an idea or not . Do you have a unique and compelling way to communicate a opposition or product . What is a good example of an authentic at . You are going to be surprised by this one of the best examples i have seen recently is er decided they were going to deliver air conditioning units in new york city. . Why is that authentic it says a couple of things. It expands the notion of what the company can be and they can do that in a 32nd ad a 30 second ad will stop it creates some brand love and relevance because its in the summer and new york and it is hot. Of where marketing and communications are moving to, more toward reviving some usefulness. That doesnt mean to say a great story or great narrative in a Television Ad or Marketing Campaign isnt necessary, but it does paint the outer edges of what marketing can be. Ive got a new favorite ad. We just saw in the last two weeks derek jeter in gatorade being a new york storyteller. I love it. What do you think . I think its one of the greatest teases of content ive seen in a long time as it relates to my favorite player and my favorite team. Extremely is authentic. The yankees is a dynasty. I think what this piece of content does is capture the essence of what derek jeter is about. Gatorade definitely captured some lightning in a bottle here thomas but it is authentic. Theyve been working with him for quite a long time. Its not like they went derek jeter, sports and gatorade and were will do something to commemorate his retirement. They have been working with him practically his whole career. Chapter great closing for the brand and the athlete. It made me want to go get a drink with derek jeter. One of the things about great content as relates to Television Advertising or whether we see it digitally not digitally or not, does it compete with the content we are watching that the advertising as for . You what program i was watching when i saw that, but i thought it was better than the program. Stick around. You are with us for the whole hour on a Founding Partner for anomaly. Coming up, how advertisers uld react to the scandal the nfl controversy has become a textbook case will stop and what is cooking at Dunkin Donuts . We will speak to the ceo. This is Market Makers. We are digital and you can see our stories on your tablet and we are streaming on apple tv and amazon fire. It is a nightmare scenario for advertisers. Rent spend billions advertising a sport that gets caught up in controversy. Right now, that is the nfl. How should those advertisers respond . Should they become activists . An economics professor and the ceo of a Sports Marketing firm and jason from anomaly is with us in new york city. Should advertisers become activists . Im thinking of the stance budweiser took over this Domestic Violence scandal in the nfl. It feels like they are almost there. I thought their message was very strongly worded and i applaud them. Being from st. Louis, i thought that was an appropriate message. You saw a lot of other companies coming forward not as strong with their message but taking to social media and making sure their customers know where they stand is very important. With you think advertisers should do . I think they are caught in a tough spot. They have to wait and see with the nfl does. Thats going to take some time to play out. The worst thing you can do is overreact or under react. There are certain issues that pop up in culture am a sports in particular, where it is easy to under react because the thing that has been done is so serious and speaks to a wider problem in culture that to do nothing is a sin. To do nothing is a sin, but why is a danger to overreact . Theres a symbiotic relationship , but he who pays the piper calls the tune. The nfl is also the meal ticket for a lot of businesses and brands out there. Largei think is by and giving them a free pass at all of this for a good reason. In this a lot of money game as it relates to the nfl. It is the duty of the nfl to get it right. Is the risk for advertisers partnering with athletes . Andand i have sat here talked about lance armstrong. Anheuserbusch would not have a problem with the nfl but should you be getting involved with specific athletes . That is absolutely true. Them, youconnect with have to be willing to ride out the good and the bad. Does that apply equally to sports . You cant really compare the nfl as an organization with a fallen hero like lance armstrong, can you . But thereseave so, a lot of interesting aspects here because the nfl is such a big business and the ratings are so big, i dont know how this would have laid out of the was the nhl. The nhl has much lower ratings and i think sponsors may have cut ties. The delicate aspect of having these relationships with individual athletes i know from going to conferences and listening to a spokesperson from forms 500 companies, they have to be more delicate with you they partner with and do research to make sure you are not dealing with somebody will bring shame to the company. When we talk about taking the good with the bad, is that the case . Maybe they get a losing season or two, but what if the bad is hunching your wife in the face . Are you supposed to write that out . Is very easy to cut and athlete, as you have seen Adrian Peterson and ray have been dropped, and its easy to cut and athlete. In my opinion, they should have had a policy for this. This is not the first time there has been Domestic Abuse issues in the nfl. At least they are bringing in people formulating policy and hiring a social responsibility person. I think they are moving in the right direction but it hurts commissioner caddell. I have to get year ahead of this issue. If they dont, Come Super Bowl time its going to hurt them. What do you mean . The nfl needs to get ahead of this issue. Im taking it seriously and weve been covering seriously covering it seriously, but this will hurt the nfl Come Super Bowl time . If they dont get ahead of this issue in a credible way putting in a zero tolerance helpingspeaking out and america as a company because we all watch, helping america come to terms with Domestic Violence its not just an nfl issue. That is what i would like to see. Nfl doesnt do that, is it going to hurt the sport . I think this is as serious as drugs and baseball. Creativee having meetings right now will the conversation change about what is in that . Are they saying lets not have scantily clad men, but do something more wholesome . You are definitely not going to see the objectification of women like you havent passed balls. The next day is going to be a lot of fun. Scandal beingthis as serious for football, serious enough already and more serious if the league does nothing as serious as what drugs have done to baseball . I think if they dont do more going forward, you could see a dip in ratings will stop our company is going to see customers. Ifany of these companies they have sponsored the nfl, . Ave they seen a dip you have not seen that evidence just yet. Shamefully as the lack of their diligence both on the ravens behalf and the nfls they had to show everyone they are moving in the right direction. You dont think dont think the dallas cowgirls are going to the wearing trucker hats and jogging suits . I dont think youre going to see that connection, necessarily. Rich from sports impact. More Market Makers in a moment. We are approaching 26 minutes past the hour, time for bloomberg on the markets. Dreamworks animation is the stock were looking at today up 70 on reports, including ours, that the son of softbank is interested in buying this small studio. And thats the point it is a small studio. It is effectively takeover bait because every other studio is owned by a large media concern like time warner with warner bros. Or universal with nbc. It is takeover based because it is a standalone whose stocks have been struggling. A year where everything has been through the roof. If softbank wants to dip a toe, thats what an acquisition like this would be. That is the question whether they want to get a total into the American Media market or jump in with a deal like time warner. When we come back, walmart goes social. The Worlds Largest retailer is teaming up with the cofounder of instagram. Its a time to celebrate caffeine i do that every morning. It turns out this is National Coffee day. Did you know this holiday is bringing his mess . Bringing business. Live, from bloomberg World Headquarters in new york, this is Market Makers with Erik Schatzker and Stephanie Ruhle. Also with us today is the ace advertiser from anomaly, our guest host for the hour. We also need to talk about what is happening with all mark stop julie hyman is here with more. Namingve walmart ebro and instagram kid . The ceo of instagram is being named to the board, being the 15th member on the board. Hes a first tech person on the board, that would be marissa mayer. But he is the first bro and the youngest guy on the board. This is not wholly out of keeping with what walmart has been doing. They have been doing this big push into ecommerce and mobile and now they get more than half of their sales on mobile devices. They have revamped the website and they are pushing more into that world. They have made a lot of acquisitions and have 20 people in san bruno, california and have a Silicon Valley presence. A line ofe latest in them doing that. Doesnt seem like a proactive move or defensive one . Attack on one more board seat and tack on one of those guys who understands how the social stuff works just to protect themselves. They have been rather offense of with the other moves they have made. Other retailers, they are not necessarily doing things like this, so you could argue its more offensive will stop we just got some numbers from cantor retail. Less than 6 of walmart shoppers are aged 16 to 24, which is not that much different from other retailers of this ilk. Are 65their customers and older, so they definitely skew older. The average age of a walmart shopper is 46 years old. They probably want a little bit more of the bro. What do you think walmart is looking for in a guy like that cofounder of instagram . More shoppers will stop digital dna helps, but how do you get walmart. Com to attract one of the people who are amazon . This is indicative of a shift younger. And they have to. One of the interesting things i , if you go a little bit higher, 18 to 29 years old, 20 of them are married will stop this compares to 70 that were married in 1960. Married people consume differently, they buy differently how they consume a lot more than singles do. Aresaying dairy you saying that married people are chubby . This is something Shelby Holliday was talking about a recent survey shows millenials are more likely to shop more often at the Grocery Store and this is a problem for walmart. Theyre still getting the stock up trip where you go on a sunday and load up for the week, but they are not eating the fill in trips when someone goes its difficult to do a quick pop into a walmart and buy a couple of things for dinner that night. Doesng him on the board that help with that issue . Thats another question. Ask what they sell and the experience they have in the store is going to change all things differently and consume differently. Thank you very much. The cofounder of instagram on walmart. Hes fighting starbucks on one side and taco bell on the other. We will speak to the ceo of Dunkin Brands. This welcome back. Im Stephanie Ruhle is my partner Erik Schatzker and our guest host, jason deland. Theres a battle brewing with breakfast fast food chains are waging a war over our stomachs. The chairman and ceo of Dunkin Brands is here. Walk us through this. Breakfast has gotten harder and harder you have talk about in the game. How are you keeping people in your stores . Many ways. Firstly, we have great beverages. Today is National Coffee day. It will come into our stores today because theyre going to get a free medium hot dark roast coffee. Perks arne duncan perks our dunkin its reminiscent of how youre talking about how you get people back into the stores. We are world last with fun also fast service. People want to come into our stores, get served in and out quickly, so speed is critical. A holiday Like National is this something created by marketers and advertisers . I argue valentines day is a scam. We love holidays. We love an excuse to talk about our products. Coffee is an extremely important beverage in the world. It fuels us and gets us going and its incredibly enjoyable. Holiday . Erves a it deserves some recognition. Where is the battle for breakfast most intense question mark i think on coffee. Coffee is a big business. Increased five 5 or 6 in the last couple of years. People love coffee, it is and growg to grow internationally. We are continuing to grow all the way around the world. Coffee is part of the battle, but this is the broader part of the same battle. How do you take someone . Lses coffee drinker offer them a free coffee on coffee day. And you can have it for 90 97 any other day. The answer is when we go into a new market, and we are going we are growing quickly across the u. S. On we get a lot of customers from independent stores. We get some from some of the chain competitors. And we have a lot of transplants. We had cues around the block in california the other week. Bangalore in india two weeks ago in southern india, we had the same kind of result. Breakfastfind the part is the most loyal in the category . I think it is loyal but everyone go everyone who goes to starbucks or Dunkin Donuts goes to another chain the same week. A different chain . Yes. People are driven by convenience, offers and Great Service will stop thats why we focus so much on our service and speed. Am going to give you a new idea. Help me through the craze and desire for pumpkin. I feel like its everywhere. What is so cool about pump again . Its interesting you say that because we were criticized last week for not bringing out pumpkin early enough. Not even october yet. Why havent you brought him get out already . That . E criticize you for they need to find Something Else to do with their time. Some other competitors brought it out early in september and people said why dont you bring it out the same time as them . These holidays are getting longer and longer but this is the biggest limited time offer of the year. We have pumpkin in our coffee ended our doughnuts. Have pies burger king has come under for moving its headquarters to canada. How do you take advantage of that . We have our franchisees fired up about that and emerge are it means cost savings. Its a great opportunity to grow. We are very excited about the fact theyre going to spend two years working on this merger and all the distractions that go with it all stop its great for us and great for our franchisees will stop do you worry about them being such a loved and trusted brand in canada western mark we battle with tim hortons every day of the week around the canadian border. They have shut down a lot of stores in places like providence, hartford, maine theyve done well in a couple of markets but our franchisees are very competitive, as am i. Far, the opportunity for them to go deep into america has yet to be proven. Health along in the conversation . Im looking at a coffee and im thinking to myself there isnt much nutritional value in either and we have seen how cocacola experience experimented with the obesity debate. Launchas tried to healthy snacks. Is it better to do what you know . That is a great question. Give people the choice. We have a smart menu which is low calorie items. Coffee is very low calorie. Give people all those options and let them decide. To go with aecide thing like a french crueler. The most important thing is to give people those choices. Let the consumer decide. Very consumer driven. But you dont want to play an active role question mark it is not our job to educate consumers. Its our job to follow Consumer Trends and listen to what our franchisees say who are in touch with the consumers will stop that is why our consumers say they wanted another bland that is bold and smooth like old Dunkin Donuts coffee. The ceo of Dunkin Brands. When we come back, we are going to buy a round of word association. Welcome back. We are rounding out the hour with our advertising expert, jason deland. And its time for a game we like to play word association. We are going to give you a word and you have to tell us immediately what comes to mind. Lets start with one of the best advertisers in the game apple. Innovative, but i have to stay that way. Kanye west. Just got divorced. Didnt he . I dont know. Im bad at that one. Tmz. Too much. Get off the air. Why . This whole notion of media airing everyones dirty laundry lets get back to proper reporting and proper journalism, please. Can we actually do that . It wasnte nfl if for tmz, wouldnt we still be saying rock on . Good point, but i would go if 0 of their value its deteriorating our brains. Snapchat. But good acquisition. For whom . Anyone who wants to compete with the big boys. You are in the business of creating and eligible indelible images. Why would anyone want to be in the business of images that disappear . I think its part where social media is going. Where does advertising go consequently . It gets like fashion disposable. More ephemeral question mark yes. Ready question mark new york times. The gray lady. Thats what i think will stop thats what i think. Vice media . Overbought. Do they compete with you . We collaborate with them more that we compete with them but thats a great example of a qualified media for makua xiomara getting out was i agency company. If that is fair is that fair that people believe it is news . Its not news. Theres nothing news about it. It is paid advertorial. Everything vice does or everything they do for others . If you are getting paid by if youre getting paid by advertisers to do things, that washes over everything you do. What is your stance on native advertising question mark my stance on native advertising is, if it offers credible utility and theres a between church and state, its ok. Advertisers want to blur the lines between church and state so the unsuspecting reader or viewer has no idea question mark spend, spend, spend. Give me more. Does the consumer know what is advertising and wednesdays . I think the consumer is getting more savvy than big advertisers give them credit for. Youtube stars. I think there are more coming. Taylor swift. Talented. And question mark goodlooking. The ideal partner for a brand right now could it be kanye west or taylor swift who is a must get for companies right now companies right now . The best you can possibly get its no longer about getting a good message, job link something. And its not about celebrity . Borrowed equity come a borrowed interest is something with brands with Solid Products can do, but if you dont have a solid hot platform underneath, forget it. Stopank you so much will the Founding Partner at anomaly and a very special guest for the hour. We will be back in two minutes. Welcome back. We are now joined by adam clip. , anchor of money hes here to tell us about the stories hes most excited about today. Here is why there was a note is morning out this morning that got my attention. This, but since world war ii, dividends account for 51 of total returns. Needingthe talk about to find the next new biotech stock, just boring old procter stockss, ge income will stop this assumes you reinvest those dividends. That is a key distinction. Andou have an ira account put boring dividend stocks in their and you take the dividend and reinvest them and buy more shares, that accounts for 51 of total returns all stop we are screening for companies to increase their dividends will stop i know what i am doing today. Thats going to do it for Market Makers today. Be talking about inversions. The Keystone Pipeline and the economy north of the border. And we will have the canadian finance minister. He will be here for the bloomberg candidate summit. It is 56 past the hour, we are signing off a bloomberg tv is taking you on the markets. Julie hyman has more. Andks in the red simmer spending did rise in august, and that sparks rate concerns again. Protests in hong kong adding to geopolitical uncertainty. Derivativess a strategist at mk m holdings. Weve got an uptick in the vicks and thats usually what we have. Thespot vicks is above first three months and the futures would indicate people think volatility is going to fall from here . It was more inverted this morning. A nice recovery in stocks. People have been conditioned to believe we get these inversions over the last couple of years, that has unwound quickly and in a signal to get long stocks by the we would read it more cautiously than that. I want to turn to another big story of the day. This is the first day you can buy options on alibaba. Assee a lot of activity people are interested in different ways to play alibaba. But unlike the other hot ipos like facebook or twitter, we are not seeing the same level of volatility in the underlying stocks. How does that affect the Options Market . It speaks to the success of the ipo. If you look at facebook, implied volatility is up, linkedin, twitter, both are higher but alibaba is in the mid 40s. It speaks to stability but it is still relatively elevated. We are high on the street with Rob Sanderson targeting 125 on the stocks. With the high volatility, we think the trade is monetizing that. You will be holding these for a while for tax reasons and makes a lot of sense of stop if you go out to november, you can sell a 100 right halls and commit the selling stock 15 higher. As long as theres a spread between implied and realize all ability that could last for several months, monetizing that makes a lot of sense. Thank you so much. We will keep watching and see how it performs. You so much for coming in. We will be on the markets in early minutes. Money clip was quote is next. Welcome to money clip or we tie together the stories and video in business news. Heres the rundown russians foreign minister says the cold war is over all stop he joins us for a global lose it. Russia striking oil with exxon mobil in the arctic. We will fly you to the site. Its an international exclusive. And todays wild card the world according to bill clinton will stop the former president gives us his take on global event and where america stands today. In banks Goldman Sachs on