Banker who buys and sells Major League Soccer teams. One ben affleck or Leonardo Dicaprio need a break they had into one of these multimillion dollar trailers. You would not believe the amenities. Welcome to Market Makers. I am stephanie ruhle. I am alix steel, in for Erik Schatzker. I think we need that trailer. I could not be happier they are doing that feature. It is a recipe for this organization to know how i like to will. For now, we will talk about a big number, 5 billion, how much it could cost bnp paribas to settle a probe on whether the bank illegally did business with iran and sudan. It is double what Credit Suisse paid to settle a similar investigation, and moral than what investors were and more than one inspect investors were expecting. I want to bring in more i want to bring in keri geiger for more. The hits keep on coming. I think the capital ratios can sustain a 7 billion hit, so we are not in number that can hurt the bank, but it is unfolding into something interesting. All of the people at the carillon looking at naming and shaming individuals. We did not have that so much with Credit Suisse, and they could lose their chance in the u. S. Could they actually lose business and customers during this time . They could. That is a huge difference from Credit Suisse the cause many people feel by brady dougan pleading guilty he was saving their ability to do business anywhere they wanted and maintain clients privacy. The fact that bnp paribas could lose their ability to do business, or credit due to the reputation . They could lose customers. I do not think they will lose a lot of customers, but it is a possibility. It will eat into revenues. It is a small revenuegenerating business, so it will not be as clearly as substantial. It is a signal. Criticized the Credit Suisse deal. Congressman criticized that there were no individuals named, they had no resignations from the board or the c suite on this. It is another step to fend off the criticism that the deals are not strong enough. Is that fair . The departmentke of justice is merely responding to carl levin and those critiquing and maybe they are digging where they should not be . The stock was up yesterday despite the fine. Crack suspending the dollar clearing business has been suspending the dollar clearing business has been in the works for a while. It was probably a pragmatic solution for the banking regulators to take on this. Yes, these cases, instead of being held as being tough on the banks and reversing two big to jail, they are being widely criticized for not being tough enough. The guilty plea we are getting is not getting the reaction the Justice Department had hoped for. This is also run by the Manhattan District Attorney versus the Credit Suisse case which was the eastern the strict attorney for virginia. What is the distinction between the guys behind this . Good question. The Southern District has been called the sheriff of wall street before, and he has been tough on banks, tough on insider trading, so it is not a big surprise this case is coming out of the new york office. Holder was running the Credit Suisse case and he has sent signals that he wants to get tough on banks. We have two different offices, essentially, running parallel cases with similar deals and guilty pleas with big fines. When you look at Credit Suisse business versus bnp paribas, can you give us understand the how talented are they, how much business do they do in the u. S. Question mark they have a great u. S. . They have a great banking business, a great marketing business. What is bnp paribas look like . They have a solid business here, too, with steady growth and client in the u. S. I would not be surprised that the trajectory doesnt continue. It does not see my clients are fleeing Credit Suisse as we know it. Run out settlement get ironed out, it is not guaranteed that clients will fully. , you have a lot to cover. Breaking down all of the bad news of the big banks. Target is still trying to recover from the massive massive data breach last november, reported profits that the analysts and cut forecasts for the rest of the year. Target is still seeking a new ceo after fired its chief over the hack attack. For a look at where the brand is headed, how they can recover,oining the is interbrand ceo and the author of pitch perfect, how to say it right every time. Josh, it is not just the hacking scandal. What do they need to do to change the image . Everyone is talking about the hacking scandal, canada, slow to move online. I would give target two pieces of advice way to the customer cant be as honest, fast as possible. Price, product . The whole operation. The second thing i would say is do not forget target is an amazing brand. Most customers will stick with target, 7 will do less business in the future, 7 anticipate doing more. Matter,uch does it bill, what the messaging is from the top . If i am a target customer, do i care that the ceo could be leading leaving isnt just about selling products at good prices . I think it is more about a retail strategy. I was talking to a venture capitalist in the valley about the target situation, and he said something interesting, convenience and value, being able to get product at a good price, and not having the consumer disrupt Shopping Patterns will always trump privacy and security. Those things matter more to the consumer. I do not think it is a matter of having an effective medications chatterjee over the data breach, Communications Strategy over a data breach. Is one of the problems that target has a lot more competition today than they did four years ago . Target was the first big chain, discounting store that was cool, stylish, and now calls another companies have these highend boutique companies. H m. T only them, zahra, think about them, i live there, brother. Moving faster with faster replenishment and great style in their merchandise. The second thing is the convenience story is being challenged by the amazons of the world. Julie hyman, our retail reporter, was working this out earlier walmart and target get the same amount of percentage from the revenue from online, for some reason the perception is target continues to be so behind walmart in the online business. Bill mcgowan, why is that . What are they doing wrong in that kind of communication such strategy communicate and Communications Strategy . It is one of those jobs that has to be done in the board room with your Communications Team in there, figuring out how to weave in that ecommerce, online messaging through everything that we do. If cannot just be an appendage to what we go out and say as a tack on. Their image to push as excelling in this area, they have to figure out a way to craft the message and incorporate it into every external communications situation. It cannot be a oneoff hit. I would say they have to go further, make experience seamless when i am shopping online, on the mobile app, and in the store, i have to have an experience and understand to im am and make it personal for me. They can do that. They are not being recognized for that. They are in the game, they just need to make the experience seamless. Is there a retailer out there that has a teflon brand . I do not check it, but somewhere in my head i believe amazon has the best price, walmart is the cheapest, and i never checked those prices. Targets Price Comparison is somewhere between 2 and number four percent higher. 4 higher. Chict is based on cheap with liberals of convenience with convenience. They need to make the online expense meet up in a seamless way. , d believemcgowan there is loyalty or customers will flee for price or style . To joshld leave that feldmeth, as the expert in the area, but in terms of repairing the image, the thing about the data breach story that might say a lot about your survey yesterday, that consumers are willing to forgive and forget, the data breach story is not really a visual story so much as would be, or the bp oil spill story. T is hard to visualize that any consumer that has had his or her email account hacked knows the feeling of that breach being done to you. So, when i saw the results of your survey yesterday, that is what spoke to me, the fact that may be consumers are not holding target so accountable for what happened back in december. You make interesting point, especially with bp, because when the oil was flowing out, nothing could solve the problem until the visual went away, which leads me to the ceo question. We are in an interim ceo situation with mulligan. What is the number one quality the ceo might need to have, bill mcgowan . Ofhe has to exude an air confidence and trust. They are in a trust rebuilding stage. I think thats a really need to focus on what the narrative is moving forward. They cannot be looking in the rearview mirror, continually addressing a problem that, at least according to the survey, has already been dealt with, and a need to have, as i said before, more of a retail strategy and a Communications Strategy. You can also learn from the Jcpenney Ron Johnson episode, changes required question that there is a lot that is right about the brand and a few fundamental required . There is a lot right with this brand and if you fundamentally break what you have with the customer you cannot forget your target. Why does it seem like it is so tough to get these retailers they do not have to knock the cover off of the ball. Jcpenneys just has to find the lane pettitte they do not have to be the fastest. Lane. They do not have to be the fastest. Retail markets have always been operated on a daily basis and that has been complicated by online retail. They fundamentally have to create a virtual experience. It has always been difficult and it is harder now. Who should be the ceo . I will leave that to the board. Bill, do you think medications and the face of the brand is that communication and the face of the brand is that important, or is it just what is on the rack . What is stocking the shelves, and the price tag on those things matters more than who is occupying the c suite. I do not think anyone when they go shopping is making the decision based on who the ceo is at the time. Thank you so much. Josh feldmeth, interbrand ceo, and bill mcgowan, author of pitch perfect. Great conversation. Coming up, the online retailer that might be valued at more than amazon. Com. The chinese plan to go public in the u. S. Plus, trying to change the coffee industry one being at a time. We will talk to the founder and ceo of thrive. This is Market Makers, live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. Plus we are streaming live on amazon fire tv and apple tv, anywhere you can find us. First. Bloomberg. Welcome back to Market Makers. I am stephanie ruhle. It is time for the newsfeed, the top business stories from around the world. Ebay says it has been hit by a cyberattacks and the online marketplace says it will be asking users to change their password. Ebay says there is no evidence cyber attackers got access to financial or credit card information. Of course they will say that. Russia and china has signed a natural gas deal valued at 400 billion. The agreement was reached as russias president Vladimir Putin is visiting china. The deal cleared the way for a pipeline to be built from russia, the biggest producer to the biggest consumer. Netflix is launching its biggest expansion in almost three years. Get ready, danger watchers the company will introduce streaming Video Services in germany, france, and four other european countries, trying to establish global dominance ahead of hbo and amazon prime. J chinese online retailer d. Com is looking for a higher valuation than amazon even though it is yet to post annual profit. Leslie, you wrote an article for wantserg news saying jd the jeff bezos treatment, the amazon treatment, what does that mean . Jd has the traditional model where they operate the logistics associated with the delivery of the product, which is expensive, and why you would at ali baba, which posted 44 margins for the last nine months of last year. For this model, with the ceo is asking for is the jeff bezos treatment, that we want to share appreciation over the long run even though we are in not showing annual profit. Doesnt every ceo on the planet want jeff bezos treatment . Trust me, let me make no money, and let it ride . Exactly. An investor told me every Ecommerce Company out there told me they says theyre going to create massive scale and be the Biggest Company in the world, but it is about trust, and jeff bezos has a secret sauce. The difference is market share will increase about 64 this year, growing demand this week versus the u. S. Ecommerce growing tremendously versus the u. S. Ecommerce business. That is the arguing for saying that on a price to sales basis, gd. Com should be valued higher than amazon. Have a massive Consumer Base that they can capitalize on in terms of growing their own revenue. We sat down with carson block yesterday, noted short seller, a man who trusts nothing in china. There is a price for everything, but where most of these companies trade is more than what they should be selling for given the risks. Should the companies trade at a discount to u. S. Companies because maybe we really do not know what is in their secret sauce . There is certainly an argument to be made if they should trade at a discount because there are some risks associated with chinese companies, but American Companies do not have the risks, ainterest structure where the Chinese Government can essentially dismantle your contract for the company has an investor, and you lose everything. Other risks are chinese Economic Growth slowing. It has been on a tear lately, but he could slow in the near future. When will a price, had a discount . Investors seem hyped up about jd. Com. One . 7 offering a billion offering, less than 10 of its total market value, meaning the float size is small, so people look at this and see scarcity. There is a supply and demand dynamic that could cause them to get more orders than they set out for. I should point out that investors seem to be tired of the tricks that we will not give you profit margin, but sales. When the markets are this choppy, it is another hot ipo. Leslie, thank you for giving us the latest. Leslie ticker. Up, Major League Soccer scores i am not sure i believe it u. S. Soccer teams are now worth three times as much as they were just a few years ago. It is 26 minutes past the hour. Bloomberg tv is on the markets. Were looking at u. S. Stocks clawing their way higher. The dow jones is up by. 75 . Tiffanys saw a huge gain with quarterly profits beating estimates. You also see some small caps rebound overall, and this is ahead of the fed minutes that will be released later today, but i have to say, in talking to traders, there is a lot of frustration into how to trade its market. Coming up, when we return, believe it or not, pro soccer is unable in the u. S. On a roll in the u. S. I will say world cup fever has something to do with that, teams soaring in value. We find out why. Mansions on wheels how hollywood alist actors relax in between scenes. Not too shabby. ,ure watching Market Makers live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. Live from bloomberg headquarters in new york, this with erik makers, and stephanie ruhle. Welcome back to Market Makers. I am stephanie ruhle. I am alix steel, in for Erik Schatzker. He is on assignment. Already having a great time. Only 10 30 a. M. Have foundericans out why soccer is the most popular sport to the rest of the world. The u. S. Pro league, Major League Soccer, plans to expand 2020 ando 24 teams by teams are worth three times as much as they were six years ago. Man works with groups buying and selling teams that all of the major american major leagueding soccer and he is a former professional Football Player himself. Andrew, i cannot believe a football guy is backing soccer here. How can you argue with the numbers . The teams are worth three times as much as they were, and we are million, to 100 million plus. And we been saying this about soccer for the last 15 years, and why it has been the biggest board around the world, it is never caught fire. When you and i grew up playing soccer, assuming you played soccer when i did not, but if you did, you would have not had a soccer jersey, showing up with a star. I was wearing my Michael Jordan jersey. Now, they are showing up wearing their David Beckham jerseys or ronaldo jerseys. Contingentt of this on america doing well in the world cup . I think americans love to watch the best at anything, so as long as our players in the mls are not the best, it will not draw american fans like the nfl does, right . God for bid when the u. S. Wins their first world cup and now we feel like we are watching the best athletes in the sport play in our league, that is when it will break through, and the perfect example is cycling. Cycling was not on the u. S. Radar ever and then this guy comes along, lance armstrong, and captivates the world. We love cheaters. [laughter] right, when he was not a cheater, but look at cycling. They are still selling. Isnt a factor that so many people are no longer comfortable with football injuries, concussions, pro