The owner of the l. A. Clippers allegedly said something that was downright ugly. That was audio released over the weekend by tmz. The mans voice was attributed to Donald Sterling and he was having an argument with his girlfriend at the time. He has neither admitted nor denied it is his voice but the clippers say those are not his views. Many people have spoken otherwise. There is absolutely no place in the nba family for ignorance, intolerance, reprehensible comments that are unacceptable and not fitting for what this league is all about. Hes got to come down hard. He should not own the team anymore. Theres no room in this game for a owner like that. He must pay a social price for his attempt to turn back the clock on race relations. Donald sterling should be dealt with severely if the allegations are true. When ignorant folks want to advertise their ignorance, and you dont have to do anything, just let them talk and thats what happened here. Even the president of the United States piped up on the comments that are still not definitively proven. Companies have been quick to motors,ion withkia allstate and others either pulling or suspending sponsorship of the clippers. Companiesads of involved with the clippers were talking about this. Where ive in a world believe there is no room whatsoever for racial intolerance or discrimination or racism, not at all. Whether you are a public figure or not or in a business or whether you are in the public sector, theres no room for it. That was the disney ceo bob iger speaking to us yesterday at the milken global conference yesterday in los angeles. Disney is a parent of abc which is broadcasting the nba playoffs which has been overshadowed by the controversy. The nba brand is incredibly hot. Its the playoffs and instead of talking about the game last night or the games last night, we are talking about Donald Sterling. As you noted, the team is going from being a horrible team to now being a Competitive Team that some thought had a chance of winning the nba title and now we are talking about discrimination, these horrible statements that they need to run down. What the nba does next is the big question. Many people want him out but its not like he was appointed. He owns the team. Even if those are his actual words, he did not break any laws or violate and be late nba policy. Mark cuban says this is a slippery slope. If we are taking something somebody says and we are trying to turn it into something that leads to you being forced to divest of property in any way, shape, or form, thats not the United States of america and i dont want to be part of that. Whats does the biggest l. A. Clippers fan think . He was tracked down at an awards ceremony and we tried to get them to talk about it. I dont think legally they can do this. It has to do with money. I dont know what the nba mandate is. I dont know what their structure is. If they have the ability to force an owner out, i think thats what they should do now. What do you feel about sterling . Magic johnson is interested in taking over the clippers and i think that would be a great idea. Let me ask billy. Where in negotiations. Billy crystal should take over the clippers. Maybe he could be there point guard. I would pay money for that. We will hear more from mr. Reiner on his big night. Blackstoner from the ceo Steve Schwarzman as well as the Starwood Capital ceo barrysternlicht next. Money, and onch Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. On Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. I am adam johnson. Some of the sharpest minds in business are gathering this week in los angeles for the Milken Institute global conference. Erik schatzker and Stephanie Ruhle are there and spoke with the blackstone ceo Steve Schwarzman on where he sees opportunity. We been having a great time eyeing things. M a business has been really depressed for years, way below historic levels. What is happening is some confidence is coming back and there are a lot of reasons why there might be some confidence. We are finding that our companies themselves are reallying their earnings in excess of the s p 500 pretty comfortably. Our portfolio companies. What happens as businesses do better is people are more confident in their ability to buy or sell. It does not surprise me at all with over 2 trillion of cash in the system, stock prices that are higher than they have been, as a buyer, you have more currency and if youre this this is starting to do well, then you should feel comfortable about buying something. If there is nothing that anybody wants to sell you, its hard. It seems like there are more of these secondary buyouts from other private equity firms. Can you make as much dough with those transactions . Thatknow people talk about but think about it differently when you buy a stock, did somebody own it before . Indeed, they did. Some people make a lot of money buying what i would call used stocks. Those are all stocks. People do not think about it that way. We have done extremely well. We bought one company, a mer iny called gersthei europe from someone else and we fixed up a big plants that could never make money and we did in acquisition and made six times profit. Alsoe blackstone ceo answer the popular question are we in another tech bubble . But im not a tech expert have been in the securities business for a long, long time. Payingr you have someone 19 billion for a company with no earnings than never had earnings, this is always a wakeup call. A wakeup call or a warning sign . You have to wake up to be warned. Its hard to do it while you are sleeping. That deal may have its own logic. The sellers have logic. There are so many highpriced businesses that make no money. We have lived this movie before. It ended badly. And it ended badly. Usually what happens in markets around the world would either get superhigh valuation or you get very high valuations based on revenues and no profits, eventually, there is a correction. I think we are in a stage where you have to be more alert to this than not alert. They also caught up with Barry Sternlicht from Starwood Capital. He shared his Real Estate Investment strategy and is taken the markets. The tree shaking. I kind of like the market reeling and dropping 100 points. I like keeping fear in the market. I like keeping people paying attention. Its good for discipline. He keeps them disciplined. They remember the fear factor. One of the problems today for real estate is you go back five years and you no longer pick up the 2007 crisis and now everything looks good. The investment cycle does not work like that. They have big lumpy humps like camels. [laughter] Pay Attention here big lumpy humps hunmpy humps. All of this is driven by the investment market. I was just reading a report from world and the cmbs how valuations are creeping up and youre not anywhere near the mess you had with free credit in early 2007. You are certainly coming out of that. Because there is so much money sloshing around, does it make you more inclined to sell them by . For sponsors like us at starwood, weve got to add value. We cannot just buy a static asset and hold it. Whether it is a Shopping Center or freelance camping or reimagine it with another floor or an Office Building where we can buy at tenants, we have to add real estate value today. Thats ok, thats fair. My jobs to make sure we have the talent pool to do it. Its kind of fun for me because you have to be smarter. Before it was peeing in the ocean, you cannot miss. You can see more from our extensive coverage of the milken global conference online, on mobile, apple tv, and amazon fire tv. Next, we will look at the cars of the future. Old becomes new again at gm, reinventing the camaro z28 and we will introduce you to the man who designed them. This is lunch money, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. That cars of the future today, the google sell driving car is coming closer to reality. The company said it is more optimistic about the goal of developing an autonomous vehicle. Google has been testing cell driving cars for four years and since its last update two years ago, google has made significant improvements. Ford is also working on driverless cars. The Vice President of project of aboutt spoke yesterday this. What with the ford car of future look like . It would have increasing levels of automation. It is about conductivity in the vehicle and more Propulsion Technology will go there. Its the whole aspect of personal mobility and how it will be going in the long term. What kind of car will ford will be making five years ago five years from now . I think you will see a lot of the technology you see in the car already. We already have a car with Adaptive Cruise control and radar and ultrasonic sensors and cameras. An increasing use of those sensors go all the way to a. To automatically park your vehicle to automatically swerve if there is an obstacle on the road. How far away are we from a driverless car . Gore are investors who say short Auto Insurance companies because we wont be driving cars in a few years. I cannot predict but we are looking at 2025 or so. Before that, you will see an rease in to gratian that and increased integration that is done automated before you get to that 95 or 99 automated. You guys are shaking up the pickup industry with the f150. Will all cars be made either out of aluminum or a combination of aluminum and carbon fiber . You will see a lot of lightweight technologies. There will be a lot of smarter designs. Lightweight that meets the fuel efficiency requirements will be big going forward. For the f150, is not just fuel efficiency because we can reinvest that savings and wasted more payload, more telling, or capability for the customer more telling tell wing towing or capability for the customer. How can you afford to do that . If you get the volume up, its about sales and if we can get the volume up and smart design, we can bring that to the mainstream consumer and make it affordable but also fuelefficient powertrain and does not hurt it is a dropdead gorgeous car. Its a goodlooking car. Onto General Motors on the controversy over their deadly ignition switch problem has the potential to make car keys a thing of the past. Testifying before congress, the theeo mary barra said recall may prompt them to create pushbutton start. We asked a few people at the new york matrix awards where they honor women in accomplishing various things and communication have she is doing. They say tell the truth and tell it fast. Definitely is telling the truth and i think she is just keeping up with what she is learning and sharing it with the public. The think mary barra is in hot seat and has a tough assignment and she is dealing with those who knew where the defect was bubbly wellknown. Its tough to be in any position like that. Withf us have to continue what we need to do individually. To inheritd you like what she had to inherit . Thats a lot of men at the Steering Wheel who did a lot of damage for many years. The woman brought in a lot and we wish her all the best. Thehen you step in and middle of a firestorm and are expected to put the fire out, you get blamed for everything that comes before you. I think she is handling it great. Its so ironic. They say only men buy cars. I have special joy in seeing her as president of General Motors. It shows other companies that we have one of the largest Car Companies and a woman at the head. To me its about role models and i think she is going to be a huge role model for this generation. Gm has another role model in and thez28 camaro cheap designer, the engineer who created this. This is the guy executives turn to when they want to boost performance. We are driving. Rks day job as engineering cars like the new supercharged camaro for General Motors. He is better known as the guy who led early wrote the book on restoring the art of vintage vehicles with modern power and handling. Do you want to check the tires to make sure we are safe . We are on a roller coaster ride. Your job is like your hobby and your hobby like your job. Yeah. When you do in 1969 camaro, do you say that same kind of approach we looked at this camaro . A lot of it is the same. Z28 is the most track ready camaro ever made. Unlike previous muscle cars, this camaro focuses on handling and stance rather than horsepower alone. Only the nameplate is a throwback to the 1960s it. Camero. What are the highlights . The engine is just a great motor. Its got that nice free revving and it sounds awesome. It works really well. We really went after cornering and braking so we needed a strong tire and a strong chassis. Z28 will come with a stick shift proven it was engineered by a true car guy, not a bean counter. I am a camaro guy at my first job was doing stock racing at gm and doing the last extreme performance on the camaro. I think when i was at kid reading the different magazines. Now, i am writing that history. This is exactly what i wanted to do. The first camero waivers least act 1966. It is rumored they were asked what camero was and they said it was a small vicious animal that eats mustangs. 43 albums and still going strong, dolly parton on dolly parton coming up next. Rime your band minister of turkey holds his line on twitter next. It is 26 minutes after the hour and that means bloomberg tv is on the markets. On about aally going half a percent acrosstheboard because of better than estimated earnings from various companies and people waiting to hear what the fed has to say tomorrow when it concludes its twoday meeting. We are watching general electric, the company is getting countered by a bid from siemens. The bit is conditional on being allowed to complete due diligence. People only with the matter say they want to start talks with ge even as the counterbid is ready. Sprintalso looking at after topping firstquarter sales estimates. It had some subscriber losses but it is matching broader discount plans. We will be back in 30 minutes. This is lunch money. Andre online and on mobile on apple tv and amazon fire tv. It is time for moving pictures were the video is the story. The southern United States is recovering from three days of tornadoes, at least 30 people have died. The storms have flattened homes and businesses and let tens of thousands without power. In south korea, they are honoring the victims of the ferry disaster. Barely 180,000 people visited a memorial outside seoul and the official death toll is 174 but its likely to rise to 302. Most of the victims were students from the high school and public anger has reached fever pitch as the footage showed crew members abandoning the ship for the passengers. All crew members have been arrested. Demonstrators in manila clashed with the fleet in front of the American Embassy on tuesday. The protesters were a day late. President just finishes fourday asian tour and the trip included signing a military pact with the philippines. The Obama Administration is defending its latest round of economic sanctions on russia. The financial restrictions target 17 companies and seven officials and president Vladimir Putins inner circle. Since april 17, russia has done nothing to meet its geneva commitments and it is for that reason that we announced the steps that we put in place yesterday. We impose restrictions on a number of russian individuals and entities. There are 17 companies linked to Vladimir Putins inner circle. The president Vladimir Putin has acknowledged that the sanchez are creating pressure on them and they did not change their policy. To keep ourontinue options open. We are prepared to take more action and we have made their we are prepared to take more action if the policy of russia does not change. The russian response . The Deputy Foreign minister says the sanctions will not go unanswered and he says the white house statement wanted discussed and another official says russia is planning retaliatory measures. The ideas raised by our western partners to impose sanctions on some Russian Industries above all on the military industry is aimed first of all to preclude this import replacement and continue our dependence on ukrainian factories. It is an attempt with unfit means. We will have done it anyway and we will find an adequate replacement. We will survive and move forward and are earners will fail. While russia and the u. S. Are not on the best of speaking terms, it seems like russia and north korea are doing pretty well. The russian Prime Minister is in north korea for a visit and they are trying to develop economic links with north korea. In the turkey, the Prime Minister says his nation is ready to confront the nations history of killing ethnic armenians. As was a century ago but he stopped short of admitting it was genocide. He made the comments in a weekly speech and harlem at an charlie rose spoke with him last night. Possible because is such a genocide had been the case, would there have been armenians living in this country . Andave today citizens armenians who are here in our country who have left armenia. We dont exclude them. As for his countrys ban on twitter, he is sticking with that one. Not just paying taxes, its also about respecting court decisions. Example, it is an insult to me. I go to court and the Court Decides that it down should be suspended. The Court Decides that the twitter does not do it or there are insult to ministers and they go to court and they win the case and the account has to be suspended but it is not. These are the reasons why the steps have been taken. Watch the full interview with the turkish Prime Minister tonight on charlie rose at eight p. M. And 10 p. M. Eastern here on Bloomberg Television. Still to come, we will hear from the disney ceo bob iger on expanding into china and rob reiner gets honored in new york city. That will be coming up. This is lunch money, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. I am adam johnson. Disney ceodish bob iger scored a victory buying maker studios mets part of his global plan. We caught up with him at the Milken Institute global conference in los angeles. I am very invested and not just disney today but disney longterm, will be on my tenure as ceo. Needs to do is not just manage a business successfully in the moment before the quarter or the year but manage the business for success longterm. Decisions we made collectively as a Management Team was to invest in china and not just plant seeds but to let big trees but to plant big trees that will hopefully feel Enormous Growth for the company longterm well beyond my tenure. It means a lot to me because when i think about carrying out my responsibilities and partially my legacy, shanghai disneyland looms large and china looms large. You acquired a Company Called maker studios. Ellis about that purchase and why disney wanted to acquire that. 70 of the maker traffic comes from outside the United States. We have not only a great desire but a great need is a company to grow outside the United States. Aware ofeen extremely and impressed with huge growth in media digitally and in particular short form media. Maker has done a great job. They are the number one supplier of short form video to youtube. It not only identifies creators of short form video but disturbing it very effectively and using algorithms and data, usage data, to enhance distribution and consumption wringing that kind of expertise into our company when the world is changing so rapidly before our eyes in terms of media creation and distribution and consumption we thought was very interesting and attractive. I noticed your chief financial officer, the maker team will report to him, how come . There are a couple of reasons for that. In this case, there is an earn out meaning the sellers have an opportunity to earn more money and success. I wanted to keep it close to careful that the company was being managed in a way that can maximize the ability for the acquisition to succeed for the benefit of those that sold it to us. Because it did not fit neatly into one bucket but it is going to require a very cross divisional, cross intellectual robbery approach at the walt disney company, that there is benefit to keeping it out of one business and essentially using our cfo to facilitate not just an integration of the acquisition but to facilitate it being successful. Ity made ael lastminute bid on makers studio. Without getting too much in the weeds we like that. I might get myself in trouble. We definitely like that. The reason i really liked the maker Business Model and other Business Models like it, they have something unique or it they have literally hundreds of millions of people interacting with their product. They have end users and creators which are people who are on andube working with content now you have end users and creators. What they dont have is a Business Model that works financially. Its an advertising model at the end of the day. We are selling movies and television and apps and we have an entire digital play where we have 11 shows around our athletes. We are the largest supplier of sports content outside the actual league. To have those endusers and the content creators inhouse, we can feed that type. Are you going to bid for someone else . We are in active negotiations with multiple other places. Maker has a big problem because because they did not sell to you . Yes, the reason i say that is when you look at the way that maker has treated the most important people to them the people who create the content are the most important i got nothing in the sale so they will walk and they are not under contract. Maker will go from everything it has to a 50 drop the day disney owns it. Coming up in pop, the queen of country, dolly parton talks inspiration and the changing game of the music biz and was planning on her ipod. Rob reiner will speak from the red carpet and hear what movie is his alltime favorite next. This is lunch money, on Bloomberg Television, streaming on your phone, your tablet, and bloomberg. Com and now available on apple tv and amazon fire. Today in pop, two veterans of the entertainment industry, directorproducer robert and the queen of country music, dolly parton we will start with rob reiner. You have seen his work. He was honored last night at chaplin centers awards gala. Its cool, its a little bit overwhelming. Sung happye being birthday. I have a hard time taking a compliment. I have to learn that people want to give you a compliment come you have to be able to take it. I am learning how to do that. I think its part of growing up in 967. Hopefully, soon i will figure it out. You have had a lot of successful films. Do you have a favorite . I have one that means more to me than others but i dont know which is a favorite or which is better. Means more to me than any of the films i have made. It is closest to my personality and my sensibility. When you are relaxing and not making movies, what are you watching . I love watching some of the great stuff between house of ands and breaking bad the great stuff is being done on television. Top of the late rectify there is a lot of great stuff on television. Dolly parton has just released her new album called blue smoke. Anytime you have a record coming out, you think we need to have a tour. Theid a lot of shows at first of the year in america and we went to new zealand and australia and just got back from there. Now we are going to be doing more shows in america and then we are going to europe. Talk about how this record is is playingn that qvc a big role and how the music is getting out to the audience. Way to kind of a new market the music. As you know, the music business is completely different than it used to be. And this new world of technology and all the different outlets we success with had selling records in this way. We are doing a onehour show, a onehour show, little concert where we do a lot of the songs from the cd and a couple of older songs that people love. Its a onehour special on sunday, april 27. I had to look down and make sure. Tos just a way for people view it and call and or to order or whatever. Its another outlet and we are excited about that. People are looking forward to it and the bonus is since i write and publish most of the stuff, we are able to present more bonus things that you would with other ways of promoting this. How important is owning the copyright to your own material . For example, intellectual property is at the heart of so many businesses. Anyour career, it there was instance where someone wanted you to sign away your rights to music and you decided to let him take Elvis Presley instead. You are referring to Colonel Tom Parker many years ago. Had i will always love you. When i first wrote that, they were ready to record it and it was all set to go. Colonel tom tells me at the last minute that they either publish brokenhearted but i would not let them have my song. Loved toi would have hear elvis sing it, it would have been great but it was a business decision i had to make an years later, when Whitney Houston recorded it and made it a worldrenowned song, i realized that was a smart decision. I kept all the writing and publishing. I try to think about the business end of the music early on. It is a business. It is a business and no one knows that better than dolly. Here is some of her words on it of advice of how she has stayed in the business. As you live in this business and you grow older, you realize you have had a chance to do so many things. I have been so blessed that i got to do movies and write music for that and wrote a Broadway Musical and i just love to continue to grow. I try to improve my singing and and all the facets of my business, i try to always take that into consideration and try to be better and do better. I just try to roll with the punches. I listen back to my old records and i think that even though i still can sing that way when im singing that type of song, you just kind of apply yourself to what is going on in your life and you just develop and grow. I think that affects your vocal style as well. Your ipod orked on smart phone or however you listen to music, what kind of Musical Library would we hear . I dont really get a chance to listen to other peoples music that much. I know with the hits are but i have a tendency when i have time to go back and play some of my old favorite records from years ago for my favorite artists like otis redding or cat stevens and some of those things that i always love that back then. They inspire me and restore me more than listening to what is going on at the time. Comes out may 13 and it is Dolly Partons 42nd album. Todays mystery meat, the new shape for gillette is not have more blades but it is a swivel and starts at 11 49 cents, one of the market. It is 56 past the hour and then means Bloomberg Television is on the markets. Stocks are about halfway through the trading day and we are seeing a rally as how to profile companys like mark came out of the estimates with their earnings. About eight 10p of one percent. In the treasury market, the today Federal Reserve meeting is going on. The expectation widely is that the fed will reduce its Bond Buying Program monthly by another 10 billion. We are seeing treasuries not much change on the back of that and a little bit of selling with yields pushing up slightly in the 10 year yield is now 2. 7 . Its time for todays insight and action. Adam johnson takes a look at what you can expect from that that decision tomorrow. Why wait for tomorrow . We know the answer today. Pollis the result of a new and only 28 of those surveyed in the American Population think the economy is getting better. Thats not good. Say is getting worse or staying the same. You look at gdp growth and you can understand why people are saying that. 4. 1 is where we are here. That sounds pretty good but over the past 50 years, 4. 1 is actually way below where it has been for decades. Thats part of the problem. Its that slow growth. The fed governors are concerned about slow growth. The opposite of slow growth where you start to shrink is deflation. The minneapolis fed president is more worried about inflation being too low, the flexion. That is the take from the fed so we dont need to wait until tomorrow. These perspectives have been shared in the past several days. What does it mean for us as investors . Steady as she goes on the 10 year yield. It has been very consistent between 2. 5three percent. It is right in the middle which means you really do nothing. At 2. 5, that is the sell and 3 steady as she goes, that is your plan at of the fed. Thanks so much. Lets take a look at a couple of movers. Systems, shares of the company which makes threedimensional renters are getting crushed despite reporting a 45 jump in firstquarter revenue. Stocks like these have been extraordinarily volatile. 3d systems says it sold more manufacturing printers and print materials and earnings were in line with wall street estimates but a lot of these stocks have been recent highfliers. Was being priced in. Shares of mgm are surging the most since december 2012. They recorded death reported First Quarter earnings that was where thens in china betting is legal. Lets take a look at commodities. With oil, we have crude oil rising on the outlook for u. S. Supply. There is speculation that u. S. Crude Oil Stockpiles will sell at the storage hub in cushing. Bloomberg west is next. Live from pier three in san francisco, welcome to bloomberg west. I am emily chang. Some of twitters new features saying off . The company answers and about key features and Company Growth later today. Should police be able to search a persons phone without getting a warrant . An issue before the Supreme Court today. First, a check of the top tech