Reach 200 million in sales this year. We talked to glu mobiles chief executive. Cleveland Officials Say that lebron james is going to have a half a billion dollar year affect on the local economy. All that and more over the next hour. Lets get headlines from carol massar. Has agreed to delay its start in new york city. The car sharing business as it needs to dot the is and cross the tease. A judge did not issue an order prohibiting the company from starting up its service but it extended the status quo. Boeing is said to be nearing a deal for 9. 2 billion worth of plane orders. Twocompany is poised to win deals with companies. Working the 1970s to get sought after collectibles and artwork available online. They will place some live offerings up for bid in april. Thank you very much, carol massar. Another headline involve the citigroup. The bank of paid 7 billion and find and finds. The News Conference in washington today, eric holder detail the reasons behind the 7 billion fine. They sold effective loans to countless investors, including federally insured Financial Institutions and they made false statements to investors. In marketing materials and documents filed with the securities and Exchange Commission. They let investors and the public to believe that these Financial Products had been originated in compliance with the law and key underwriting guidelines when this was often not the case. Here with me to discuss the latest in the settlement is keri geiger. You have been doing this all day. We want to go to the details. Citigroup, lets start off of the fine. Is that considered to be a big fine . 7 billion to some people might be a lot of money. It is definitely a big fine and for the department of justice, it was a huge a fine. It was one of their biggest to date. They are getting 4 billion with the other 3 billion dollars going to various state attorney generals as well consumer relief fund. The settlement came out on earning announcements. And theof the fine enormity of the fine, citigroup earnings were down 96 . Essentially all the revenue that citigroup had generated as a net profit for the Second Quarter was basically pulled back by the department of justice and paid out as a fine. Why would be shares of citigroup react so positively to the decline in trough it, but also to define itself . We call this postsettlement bounceback. We are seeing a trend. We saw with credit suisse. We sat with bmg para boss. The share prices ounce backup bounceback fines up because the fines are related to analyst expectation. When you fear that off the board for these big banks, investors are happy and be shares bounce back up. Citigroup is not the only bank to pay a variety of fines related to cases. Who is next and who is left . The mortgagebacked securities once have extracted the largest one today. Jpmorgan chase was 13 billion last year. Citigroup had 7 billion today. Bank of america is expected to be 13 billion and 17 billion for potentially selling securities back into the market. Was that linked to their acquisition of countrywide . Tobank of america is going be larger because the acquisition of merrill and acquisition of country ride that countrywide which makes their exposure to the mortgagebacked securities much larger. That arether banks facing different types of fines and settlements and sanctions that are basically run under a full spectrum of regulatory infractions. Industrycurity associations and Financial Markets association is calling or stock market reform. It has recommendations on how to go about this. Represents 400,000 banks and asset members. I want to go to washington with the chief executive and president , ken bentsen, joins us now. Tells about the proposals. Thank you. This is something that our members feel very strongly about. Market participants from all facets of the markets from very large retail houses to interdealer brokers to Asset Managers to large dealers and coming together to come up with a list of concrete, tangible recommendations that we believe the securities and Exchange Commission can adopt in short order. Those included either a laminating or greatly reducing orket access fees, limiting on who hasloor quotations, so we do with the fragmentation and complexity of the market right now. Look at data dissemination and say everyone should have access to the same data as a same time as opposed to what we have now were some can get private data feeds i had a big i had ahead of data from the sif. Also, institutional customers and the disclose of they get in terms of order restitution and how that operates. Just quickly, these type of reforms that you are putting forth are similar to other reforms and other regulatory agencies such as the fcc, the surgeon attorney generals are putting forth. Fromo you separate this the rest of the pack and how that is going to change this market, which is so under scrutiny right now . Premise start with the that the markets today are more efficient than ever before in terms of execution and in terms of price as it relates to spreads and commission. There is no question that the markets are more complex, fragmented, and clearly that is serving to undermine Investor Trust and confidence. We think that the recommendations that we put forward dovetailed very nicely with much of what chair white announced a few weeks ago. This is something our members have been working on for many years. Of ourhighest level organization, across the different types of firms from across the country, really came together and what we think this does is to provide varied rawbased support for market art is offense, both the buy and sell side, both institutional and retail behind a package of reforms that we believe can help buttress Investor Trust and confidence in the market. Are these proposals already supported by their membership . Have they signed off on this . That is right. This is something the board adopted last week and that is what we are releasing it today. You dont need any Government Action in order for your trade group to agree to all of these rules . No, but much of these have to be adopted either by the sec and or fan rough. This is Market Participants, buy side putting forth to the regulators to adopt. Barclays is under fire for some issues related to highfrequency training trading. Do you think that creates a conflict of interest or issues with how certain members are already participating in the market for these regulations to take effect . I do not think it does because what were saying here is a list of recommendations to the regulators to adopt. Our Market Structure is adopt adopted byt of rules the as ec and the different Market Participants react differently to those will. To those rules. We say it is time for regulators to go back and make additional changes to the market to do with data dissemination, complexity, and transparency and fairness that we think will benefit and make the arc is more efficient than they are today and most importantly, help buttress Investor Trust and confidence in the market. Stock trading volumes are down. If these proposals are adopted, what will happen to liquidity . We hope that these will help improve liquidity. We hope they will help improve price transparency. Tradingaspects of volumes are not necessarily related to the rules but we do think that if you deal with complexity, you do with fragmentation, you do with data dissemination and disclosure that you are going to give it investors greater confidence in the market and that should help with liquidity and help with trading volumes. Aret of trading volumes determined by other economic factors. Can ensign is the chief executive ken bentsen is the chief executive of sifma. Also my thanks to keri geiger. Find out why Boston Market is entering the burger market. This is taking stock. Im pimm fox. According to the you the usda, last year marked the first time in nearly a century where americans consume more chicken and beef. Boston market is no stranger. It cooked over 61 Million Pounds of chicken last year. It is trying to sell more with the launch of its new blt rotisserie chicken burger. Here to tell us more is Boston Market chief executive george michael. Updateople a bit of an for Boston Market. There was one time or the stock of Boston Market was publicly. Raded it soared, collapse, and now is owned by a private equity fund. We had three great years. We introduced new menu items. About grapesspoke which have been a success and we enjoyed a 25 lift in sales in the last three years. It has been a good friend and we are doing well. We are starting to open new restaurants now and we are here to talk about a new product we are launching today. Tell us about the new product. I was under the impression that something that was a burger had to be made. Chicken burgers are very popular in the Restaurant Industry but we believe we have a unique product because we do rotisserie chicken. It is fresh chicken throughout the whole day. We are taking that chicken and putting it on a hamburger bun and serving it as a bacon, lettuce, tomato chicken burger. It is rotisserie chicken. Real chicken made from chickens we cook fresh. You have nearly 460 restaurants . 459 restaurants and we are about to open another one sometime this late summer. What characterizes Boston Market . Which segment of the market do you participate in . We are in the fast casual segment, a segment that focuses on quality food but served fast at an affordable price. You have background in the food service industry. I am wondering if you can give people example of your previous responsibilities, at burger king, a and w. I started at a and w when i was 17 years old and going to university flipping burgers. That is how i got my start in the business. I spent my teen your is in them with canada. Five years in the u. S. And i went on to burger king for a years. Then i joined chiles, macaroni for two years and i joined Boston Market four years ago because i believed in the brand. As part of the brand, where does this blt rotisserie burger fit in in terms of price points . Probably at the midprice point. Were going to sell the chicken burger for 6. 49. A blt is 6. 99 and you can add a order for 2. 49. It is affordable. It is not a small burger. It is a burger consumed by adults. We wanted to focus on quality. Focus on the multiplication of chain restaurants. Of frome the shattering half baked stores. Is the Restaurant Industry to be built on a traded public model, going public . It is mostly about execution. You have to be really careful with execution. You have to have the right boys the right employees and train them well. It is not just about opening restaurants, it is about making sure the employees are fully engaged, welltrained, because it is about execution. We have multiple choices where we go to eat. You only go to the places where you are getting great value. Fiu is not just about price, it is about service, ambience, the food that you get on your play. It is about where you are getting great value. Talking about value, where do you see competition and what kind of values do they offer . You get value from different chains. There are fast food chains that focus on pricing. They get the 90 nights and offers and the one dollar 99th and and then you have the fast casual, where we focus on quality of the food, on service, and we provide value as well. Differ based on the equation of price, service, quality, and ambience. From the marketing perspective, what about promotions . What will promotions play in valuing a Restaurant Business . Promotions work in a this way big way. An incentive for the customer to come back more often. You promote a price point. Other times you promote a limitedtime offer. Chickenrotisserie worker fits in that category. It is a limitedtime offer to offer. Other times it is emoting different times of the year at promoting different times of the year. You promote holidays or thanksgiving. From price to a limitedtime offer two different parts of the rate of parts of the year. Youre opening a new base. We are delighted to serve our food to be troops that serve our country. Where will it be . Fortis is the first one. Thank you very much. George michel, the ceo of Boston Market. Through, i have details on the deal and more on the mergers going on in the food industry. This is taking stock. Im pimm fox. Lindt is buying russell stover. The new company will be the third biggest chocolate producer in north america. With more about this deal and what it means for other deals that total 70 billion so far this year, i am joined by ken j en shea. Have kwen thank you for being with me. Lets talk about this deal. Lindt for russell stover. Why do they want to buy it . It expands their footprint into markets they are not strong in. Lindt is a producer of premiumprice chocolates that generally it sells to chocolate shops. It once to broaden that base to get into where it is massproduced packaged foods, such as grocery stores. At his work consumers are going. It expands the footprint from a Distribution Channel as well as a pricepoint standpoint. It wants to reach the mass consumer. Russell stover can be found in costco and varieties of grocery stores. Is this mean lindt gets better shelf space . Sure. Lindt is going to start with russell strober. It will learn to the new channels and it would not be surprising if it expanded its own supply to the same channels. They also have gear a deli ghiradelli out of san francisco. It is also considered a highend priced product. With russell stover, it enters a more moderately priced market. Productis a premium generally or is there a change in the way that chocolate is being consumed . I guess to a degree it could be. Traditionallye been a holiday, seasonal type of thing. It is more yearround now. You see locations like pharmacies and drug stores in other locations. I think the asset went for a higher price tag than people were expecting, i believe. That is the rumor price, anyway. I think it was because there are few properties left in the chocolate category that reach such a wide audience. Market. Consolidated in the u. S. , the top three producers will account for over 60 of sales and that is pretty high relative to most markets. Talking about consolidating markets, talk about tobacco. Reynolds american. There has been a lot chatter about Companies Getting together and being a tougher competitor to all treo. If reynolds and laura laura get together, it will be a strong number two. I think a lot of it will depend afford can Reynolds Lorillard . It is about 27 billion and the calculations we made says if it uses more than 50 debt to uses acquisition, it may jeopardize its ingress midgrade credit rating. There is a thought that they will sell brands to appease antitrust regulators as well as to raise cash. It will be interesting. We have to leave it there. I want to thank you very much. Ken shea. This is taking stock. This is taking stock. Im pimm fox. Lets go to carol massar. Acquiringn said it is and received news about them seconds from publication. Terms are not disclose. Berkeley saw a dirty second acline barclays saw decline. It is official. Adidas will take over from nike at the official uniform supplier for the English Premier LeagueTeam Manchester united. Signed a deal with a 20 time champion. The agreement kicks off next year. Thank you very much. Looking forward to johnson and johnson. Le rid lebrons chains Lebron Jamess return is looking to bring half 1 billion to cleveland, the Kim Kardashian game is expected to add 200 million in sales. That is according to one analyst. The creator of this game is glu mobile. It has seen its shares rise over 50 since the launch last week. Niccolo de masi. What is this game . A pleasure to be back. We pondered with kim about 12 or 18 months ago to build a game that is tailored around providing her fans with an experience so they can carry in their pockets and be in kims world. Kim is effectively your mentor as a player as you work your way up the rungs of hollywood to become an alist celebrity. How does Something Like this work . I understand the game itself is free but once in the game itself , you can purchase various and you can purchase access to Different Levels of the game. How does Something Like this turn into money . We make money in two prints full mechanisms. Isre is advertising and that 10 or 15 revenue on average. 85 comes from microtrends actions. Likere buying Things Energy and stamina to allow you to complete more missions, more tasks under her tutelage and to get you better kits. A new outfit, a new bag, a new apparel. How about a new dinosaur . Is our second biggest game right now. Our stock is up 60 in the last three weeks since the game launched. Dino hunter launched last thursday and it is the number one free game in the app store. It is lower in grossing ranks but it is higher in the free ranks. I am very proud right now about where glu it. Is performing. Thestock price is higher in last 18 months and you would be hardpressed to find a game company that has two games so different in the top three positions. Any interest in not only selling the games but selling glu mobile . [laughter] we are a public company, so as i say, for the right premium, everything is possible. Interested in being a consolidator is a consolidate he. We made an acquisition last fall. As we get larger, our opposition strategy can become more impactful for us Acquisition Strategy can become more impactful for us and we will combine an organic and inorganic strategy in the next year. You mentioned you had the number one and number three position in free downloadable games. As for the apple ios platform. Number one and number three total free apps and we have the number five and number 21 grossing apps overall. Numbers do that indicate . How many people go and play the dinosaur game or play the kardashian game . That is a popular question. We have 10 Research Analysts that are all providing their own estimates of the market. It is a closed. For me as you know. Our earnings are coming up in the next few weeks. I cannot comment on specifics but i can say that ultimately seeing bigou are as you of daily users get into the top 10 and we have two of the top three. I will leave you to speculate with our analysts over what the exact estimate is. I would love to chat because i have part numbers to share in a compliant way. What characterizes a hit game . We know Kim Kardashian is a name, a celebrity. What characterizes the actual player interface that would make something a hit . There is always some art and science to this. That is what makes the game business interesting. It is volatile, but in a case like glu, a lot of good volatility to the upside. This will be our most profitable youre in the companys history. Biggest in bottom line. You are actually seeing the outcome of a deliberate or folio strategy portfolio strategy increase the number of hits and decrease things that do not perform. The hunter is a reuse of deer hunter we released last november and the kim game is marrying her brand in Market Awareness within engine we launched previously in a game called hollywood. A proven engine improvement and proven market traction will be coming together. Would you be coming together with new Popular Figures to produce more games along the line of the kardashian game . Kim is probably the best fit in the world. It is a casual rpg. It fits her fan base very well. I would not rule out other celebrities but they have to be of her caliber. They could not cannibalize her game at all. There is a wide world out there. There is sports, fashion, music. Anything is possible. Category,neer in this we want to continue to dominate. Thank you very much, niccolo de masi. He is the chief executive of glu mobile. I just mention that lebron james, basketball stall has reported 500 million a year impact on the cleveland economy. This is all according to the officials. The county where you can find the city of cleveland. County executive Ed Fitzgerald joins us on the telephone from cleveland to talk about the return of lebron james. Ed fitzgerald, give us some details. How did you get to the halfbillion dollar figure . Yeah, thank you. Can you hear me . Yes. How did you get to this halfbillion dollar level to Lebron Jamess potential contribution . Collectof it is that we and admission tax on attendance at cavalier games. After lebron left in 2010, that dropped precipitously. That ended up costing us a few Million Dollars. That is not a bond Service Payment that we make every year. If we do not collect enough taxes, it comes out of our general revenue. That is the first thing that will rebound and we know it will rebound to old numbers because they are already selling out as fast as they can sell tickets. It will return to sell of numbers and it is not just that the attendance goes. At one point there were only about 12,000 people attending per game. Goes upron was there, to 20000 and it will be back at 20,000. It is not just the attendance of the game. It is how many games there are. We were not making it into the postseason. If we make it, which most people assume we would if we we will at this point, we talk about more economic impact. On top of that you are talking about an additional 500 employees that we believe will be hired and basically the Hospitality Industry as a result of those additional people coming downtown each week. That is people in restaurants and bars, parking attendants and everything in between. It is another 500 employees with all of their spending power and everything that goes into that. Up, ourdd everything estimate is that it is about a 34 million increase in direct spending by cavs attendees. On top of that, you have 28 Million Dollars in wages that we think are increasing from about 110 million to 130 million a year. You have direct spending that can be equally easily calculated that is over 50 million. If you look at the total effect cavs downtown,acs youre talking about 107 million 170 million or so. We you take all the Multiplier Effect and the Ripple Effect of everything that does from casino revenues to property tax increasesor valuation , the high end of that range is 500 million. A more conservative multiplier would be around 300 million. Ed fitzgerald, cleveland seems to be on a roll. ,ell about its role in politics the republicans are going to be holding their convention . We are very proud of that and i say that even though i am in the other party. We started a couple of years ago saying that we thought we were poised with all the investment we made in a new convention center. We are building a new hotel. There are 500 Hotel Projects underway. A lot of infrastructure and amenities that have been added. We thought we had a great chance to bring a convention. The first time in 80 years that a National PoliticalInvention Convention will be in ohio. Plus,he 50,000 visitors we think it is going to result in about 200 million in economic, additional economic spending. It is hard to put a price tag on the fact that cleveland in the last 10 days have gotten better press than at any time in my lifetime. It has been an underrated community and i think it is finally getting its due after many, many years. Thank you very much for spending time with me. Ed fitzgerald. Can a traditional print magazine survive in a Digital World . I will talk to the chief executive of a company that is aiming to be the youtube of magazines. This is taking stock. I am pimm fox. K. D. Apanese mobile giant bia announced it is leading a 10 million funding for a Company Called issuu. It builds itself as a youtube for magazine. Joining us now with the chief executive joe hyrkin. Describe, what is issuu . Platformis the leading for digital publishing, sharing, and discovery of magazines and newspapers that enable these publications to be digitally accessible to any device to anyone globally. We are doing so at a very large scale. Over 80 million unique readers visitors every month are across over 70nt million publications. Just tell us the background of issuu and his popularity in the european market. Issuu was started in denmark seven years ago by a group of changes who set out to the Publishing Industry from being one that rely primarily on print to being one that was able to take full advantage of everything that is accessible in a Digital World, both from digitalng leveraging distribution, monetization, and our most recent product that we whiched issued clef, allowed you to digitally share any element of any publication across the social network. Publishers to focus on what they do best, which is nt thatgreat conte people are enthusiastic about. And in a focused way, get that content in front of viewers digitally so consumers can read what they love. How much does it cost for a publisher or is it a sliding scale . Lane have well over one publishers that rely on our Core Technology. This is not just an rss aggregation service. They are relying on Core Technology to enable them to distribute and share that content. Ium business. We have tens of thousands of publishers paying us 20 40 a month for access to customization tools. Do the tools somehow connect to the actual reading audience . How do you draw people into the interface of this . , again, we are reaching over 80 million unique visitors. We are processing massive amounts of data, every single word of every page. It is a combination of serving up recommendations as people are consuming content that they like. We are recommending additional content. Publishers have the ability to embed an entire publication or a specific element of any page or image on their own website on facebook, on pinterest, across the web. It is a combination of consumers coming to issue to read what they love and publishers using our tools and services to be able to share it very broadly and whitey and widely. Thank you. Joe hyrkin is the chief executive of issuu. I will talk with the founder of a company that started the first car vending machine. You heard me. That is next. This is taking stock. Buying a used automobile can be filled with uncertainty. A Company Called carvana is trying to make the process less uncertain. It lets customers purchase vehicles and finance them using the internet. Joining us now is the founder and president , ernie garcia. Detail for people the idea behind carvana. What is supposed to do . That core, carvana is like a car dealership instead of having a physical dealership that can cost up to 25 million to build and 3000 per sale to run, they can go to the website for the process. You can figure out financing and inspect the car in great detail. They can sign contracts and schedule delivery. We deliver the car to their home and they have seven days to test drive it where they are comfortable instead of the five10 minutes at a dealership. We wrap all that with about 2000 lower cost. We think for consumers it is an exciting offering. Tell us about your time at drivetime so people get a sense for your own experience. Drivetime is the seventh largest retailer of used cars in the nation, its selling about give orused cars take. I got a lot of exposure to the retail process. I got a good sense of what customers like and do not like in cars. I think we try to Pay Attention to where value is being added. Consumers were paying a lot of money for things they did not value. From that, the concept for carvana came to fruition. We benefit a ton from the infrastructure the drivetime brings to the table. We are able to acquire cars efficiently, we have worldclass operations. We are able to scale quickly. It has been a great ownership. Partnership. What is the idea of a vending machine for automobiles . There are two ways a customer can get their car. We can deliver to their door or sometimes customers are very anxious to get the car and there might not be a delivery slot available. We operate a vending machine which is much like it sounds. They get a unique code. They drive up the machine and type of the code. The garage door opens and the car is behind that. They have all the benefits that they would if they go to the door. Where do you get your inventory . We are buying inventory the same way that any other Dealership Group out there is. We are buying them from auction, off lease, off rental, customer tradeins. We have access to a wide array of inventory. Give us a sense of how people can save if this were the model that many people adopted. We believe conveniently that this is a good proposition for customers. They save about 1600 on price which is meaningful compared to the 15,000 average used car transaction. There is no dealer fees. The average customers than four and a half hours at the dealership. They spend nine hours at dealerships overall. We have had customers go through our process in as little as 10 minutes. It is generally described as a test drive but 11 of people do not test drive cars. 60 only drive a single car and the car only gets the drive only lasts five minutes. You can drive our cars for seven days. Four and a half hours and no headaches. Describe the economic value of buying a used car compared to a newer model. Think that is a personal choice for everyone, but a used car on average is a steep depreciation there. You can get a car that is a year or two old that is 70 the price that it would cost new. There are roughly three times as many used car transactions as there are new car transactions in the u. S. That is a great market for us to attack first. The market is enormous. Areillion cars use cars sold a written there are 50,000 dealers operating largely the same model. We think we are the most differentiated model out there. What kind of car do you drive . Dont do that to me right now. I drive a reasonably nice one. Well done. Ernie garcia is the president of carvana. Live from pier three in san francisco, welcome to bloomberg west. Im emily chang. Stuck in neutral in new york city after a Court Hearing today. Tift her missed not lyf promised not to launch until the laws are checked with the taxi commission. Lyft says there is a Smear Campaign to shut down their business. China central