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 inf