Stocks and stories making headlines today. helby holliday looks at cbs big play into football. We go to peter cook and the growing crisis in ukraine. The Un Security Council in new york holding an emergency meeting to discuss the latest developments in ukraine. Accusing president russia of sending troops and. Eavy weapons over the border the russians deny the claim but it Officials Say satellite pictures provide proof of the russian incursion. Russian forces moved across the border in what he called a sharp escalation. An emergency meeting was held of his national Security Council. Ukraine accuses russia of opening up a third front near the key city of maripol. The ukrainians also claim that they destroyed some Russian Military equipment. Nato officials releasing satellite pictures that show russian equipment on the ukraine side of the border including selfpropelled artillery. President appealing for international help. Russiann confirm military boots are on ukrainian ground. Ukrainian forces are capable to tackle and cope with the russian led guerrillas, but this is quite difficult for us to fight with russia and its army. The united states, other International Powers are responding to what is happening in the ukraine. The u. S. Still stopping short of calling what is happening in ukraine a russian invasion, still incurring referring to it as an incursion. There is great concern over what is happening here, this escalation, a call from the ukrainian Prime Minister for the u. S. And eu to freeze russian assets. The u. S. Is considering all options including ratcheting up sanctions further. That Un Security Council meeting beginning this hour. Thank you. Turning to iraq where the situation is very volatile, kurdish fighters with support from u. S. Warplanes, have continued to push back Islamic State forces over the past 24 hours. Willem recently returned from iraq. The latest news about the fighting in that kurdish region in northern iraq, what are we hearing . Where i was last week have seen Kurdish Forces fighting near syria. Couple oftaken a towns and oil fields in the region. Some of these Companies Say they will now send back personal to the region now that they feel that the situation is stabilized. You talk about the Islamic State group theyre retreating in that part of iraq. How are they doing in syria . We see them retreating in northwest iraq. In northeast syria they have taken over the last major regime stronghold. There is an air base there which they have taken over, slaughtered dozens of the syrian Army Officers and soldiers. That was really the last stronghold theyre belonging to assad. The Islamic State militants are operating on so many fronts. Do we know about their ability to recruit others . From our perspective, they operate in an information vacuum, but really, we see from the death of mr. Foley have numbers in terms of how they pay these fighters. If you are a foreign jihadist, you get 800 a month. Local, 400. Extra payments for a wife, children. Trying to encourage them to come with their families. Some sobering statistics and numbers, thank you. Coming up, the secondquarter growth rate is revised up word. We will look at what drove growth higher than what is expectations for the full year. Welcome back. The u. S. Economy grew more in the Second Quarter than first estimated. The Commerce Department reports of Gross Domestic Product rose at a 4. 2 annualized rate, up from an initial estimate of 4 . Michelle girard is the chief economist at rbs securities. She is with me from stamford, connecticut. Good to see you again. You do not believe the gdp number radically alters the Growth Profile for the Second Quarter. Why not . Change ins not much terms of growth with the exception of maybe investment was better. Overall, the takeaway was the same as it had been before. Aerybody is excited to see four handle on secondquarter growth. A lot of people have forgotten that it follows a contraction of over 2 in the First Quarter and i dont think you can dismiss that. Quarterske the two together, the economy grew only 1 in the first half, and that is disappointing. Admittedly, the question is where we go from here. Startings a great point, but im not sure we will be able to sustain that pace as you look ahead to the third and fourth quarters. You just alluded to this business investment, a big driver in the Second Quarter. How would you describe the business communitys growth . I dont necessarily think its as strong as we would like to see it. Certainly, the recovery in the Second Quarter following a week Second Quarter where we saw contraction, is good news. There are a lot of high hopes in the year that this was going to be the your businesses finally started to invest. They are doing that but not in a dramatically different pace than we have seen over the last couple of years. I still think there is a degree of caution. Companies are spending but nobody is going gangbusters. Nobody sees the need to go out and invest in a much more rapid rate. I dont think they expect the economy to suddenly roar, and that is why they would need to step up the pace dramatically. Look atso got a corporate profits. For tax earnings rose 8 last quarter, the most since Third Quarter of 2010. But they were down. 3 from the same time last year. What is the corporate profit outlook for the remainder of the year and into 2015 . I continue to think that is an area like the broader economy. It will be good but not great. Companies have positioned themselves to be able to make money with an economy that is only growing 2. 5 percent to 3 . I do not think profits are at risk, but at the same time, i dont see the engine for Profit Growth to really accelerate from here. I think it will be like the economy, steady as she goes, ok but not great story. With michelleng girard from rbs securities. Addedntial construction. 2 to the gdp number. Contract to purchase previously owned homes rose more than forecast in july. Is the strengthening in the u. S. Housing market sustainable given stagnant wages and tight credit . The recovery is sustainable. We have had disappointing housing numbers even through the spring. Felt like itebound was soft. We are finally seeing some better home sale numbers. I think the improved job situation, decline in the unemployment rate, is helping the housing sec air. I think the housing story is one where we will see the pace that we saw in the Second Quarter continue, but that is a better pace than we had seen over the last six months. Housing has struggled since last summer when we saw the backup in mortgage rates. It feels like maybe it is getting its feet back under it, but we will not see the kind of double digit growth, particularly in home prices, that we saw in 201213. We have been looking at these market numbers at the bottom of the screen and markets are trending lower at this hour. Were you expecting the market to be more excited about the gdp number, or can we chalk this up to being a late day in august . In august. Late day this is a revision to the secondquarter gdp numbers. And the revisions were not that large to begin with. Is focus on there geopolitical issues with russia. That is dominating the conversation more. It. S face next weeks numbers, we get the first numbers out for the month of august, including the jobs report. That is what people will be looking for. Market volume down 40 today. 30 seconds left, what is the fed to make of all of this . They are encouraged by the recovery in the Second Quarter and hopeful that that path of acceleration will continue. They are optimistic about the second half but they have been disappointed before. I think it is cautiously optimistic and a wait and see fed. I think we heard that from janet yellen. They are watching the numbers like the rest of us, i think. Youichelle girard, thank for joining us. Always a pleasure to get your perspective. Still ahead, are you ready for some football . Cbs is betting big that you will be more than ready for thursday night football. We will hear from the cbssports chairman sean mcmanus. Breaking news considering the city of detroit. It is getting 200 75 million in chapter nine exit financing from barclays according to the emergency manager for the city of detroit. We will stick to the senior director at Standard Poors tomorrow. We will take you to follow the story and bring you more details today as soon as we get them. Football season is here and that means billions spent by networks 22 air nfl games. The league takes in 6 billion each year in tv revenue, but what is in it for the broadcasters . We crunch the numbers. Which networks get the best deal . If you look at fox and cbs, they have 27 games each. If you take the average rating per game and you look at the number of games they have and then how much they pay, about a billion dollars each, they are paying less than two dollars per viewer. Fox, nbc, cbs, had similar deals. How do you calculate this . You look at the total cost. They are all spending about a billion dollars each, and then you look at their average ratings. Fox and cbs, 27. Nbc had 19. If you look at the total number of games, average viewing, you have total viewers. Over a billion viewers on fox and cbs. That is more than the u. S. Population. Obviously, some people are watching more than one game. Why is espn so much higher . For monday night football. That is just a different type of deal. Time,a weeknight, prime the highest rated show on monday. They are also a cable company, so they have a dual revenue stream. They get money from you and me from the cable box, money that fox and cbs does not get, but there were also some negotiations that have been written about. They would make the argument that we have more than monday night football, we have content to fill multiple sports channels all year long. The other guys just have a game in a studio show. So that goes into the total price. If you look at just the games, it is extremely expensive, so they have to fill it up with other content. Do you think abc is wishing they had not given up monday night football . Espn now part of the does sunday night football, which is the inverse of what it used to be. Espn on sunday, abc on monday. The Network Packet is now on sunday, so they tend to be better. They have that lex schedule. They can steal a game between fox and cbs. Nbc has a lot of power which is why their rate is a little bit fox, becausebs and they are getting some functionality that the others do not have. You surprised that the nbc sunday night football is so popular . They are all popular. All of the numbers are above 20 million on the average audience percentage. The afternoon games, that 4 00 p. M. Start, tends to be the highest rated game. There is no competition during the day. Everybody watches that. Thank you. You remember when football was just on sunday afternoons . Speaking of which, no more. Now even thursdays. Cbs is betting big that thursday night games on its network will bring in the ratings. Shelby holliday, who sat down with cbssports chairman sean mcmanus, is with me. Allout to make sure thursday night football is a success. They are airing promos across cbs channels, they are announcing 18 members of their team, and they are shuffling prime time programming to accommodate the games. Why . Ratings are a big deal, but also because this is a oneyear contract. Cbs recognizes the value of it and wants to win the contract again at the end of the year and wants to be the home of thursday night football in the future. When i sat down with sean mcmanus, he explained the importance of this thursday night contract. It is fair to say we have not promoted a franchise like this in a long time. It has been the biggest promotional push we have had and cbs in years. We got the rights to thursday night football in early february. We started our campaign in early march and its been on the air since then. By the time the opening game kicks off, everyone in america will no there is thursday night football on cbs. This is why the deal is creating so much buzz. They are airing only the first half of the season. Cbs will half, which be promoting and producing, will be aired on the nfl network. Proppingre essentially up the nfl network for part of the season. Why is cbs bothering . Because live sports, especially football, are incredibly valuable to tv networks and advertisers. At first glance, it seems like cbs does not need thursday night football. They have one of the highestrated shows on thursday night. That attracted about 20 million viewers. , viewers of the watch moreeory recorded shows. Most football fans will watch live, and that is why cbs sees value to bringing football to thursday night. Cbs is also looking at the brand potential for thursday night football, like monday night football. They are hoping that putting their eggs in the basket will pay off and will get a longterm contract. With a looklliday at thursday night football on cbs, thank you. Lets reiterate the breaking news we told you about a few moments ago. Receive of detroit will 270 5 billion in chapter nine exit financing from barclays, according to the citys emergency manager. Financing will be used to pay out 120 million the city borrow to help fund the bankruptcy, pay creditors, and revitalize the city. 200 million of debt will be taxexempt. The city previously won Court Approval to borrow that money. I will be speaking to someone from Standard Poors tomorrow for her take on these developments. 26 pass the hour. Bloomberg is on the markets. Good afternoon. Lets get you caught up on where stocks are trading. We have been pushing up against that 2000 level throughout the morning and afternoon and have not been able to break it. 1997 right now. Nasdaq offdown, the. 2 . I want to highlight a couple of individual stocks. At an alltime high after reporting a 39 jump in Second Quarter sales that beat analyst estimates. Andet owns the kay jewelers ds and recently acquired another. Guess is warning that they are not getting the attraction that they had thought would their the clothing. They cited softness in north american stores. I stepped in and there were no acid washed jeans to be seen. Welcome back to the second halfhour of bottom line. The United NationsSecurity Council is meeting right now in an emergency session on the growing crisis in ukraine with some members expressing outrage. You are looking at a live shot of the Council Meeting. The undersecretary general of Clinical Affairs told Council Members that the latest a dangerous marked excavation in the conflict. A top official says at least 1000 Russian Troops have poured into ukraine with sophisticated equipment and have been in ,ontact with ukrainian soldiers resulting in casualties. The Russian Ambassador to the u. N. Told reporters you are at as he walked into a Council Meeting and gave no further comment. We will have more developments as soon as we get them. More evidence today that the euro zone economy may need more stimulus. The European CommissionEconomic Confidence index fell more than forecast in july, hitting its lowest level this year. John herman is the director of Interest Rate strategy at this beauty mitsubishi securities. Welcome back. This latest news that we are hearing, confidence index, it has hit the lowest level this year. What is going on . Eurozone,nately, the to me, seems to be spiraling in a similar way to the way japan did back in the 1990s. When i look at the problem, i see many features of the economy and the steps that policymakers have done that are similar to the japanese situation. That youcently wrote believe there are japanesestyle risks in the eurozone. What are they, and could they be Game Changers for the ecb . Yes, i see a lot of similarities, and lets try to run through a few. In the early part of the 1990s, they had a large credit bubble which burst. So there was a negative wealth effect on the households, with the plunge in the real estate values, and then we saw some thing similar in europe. In japan, they were slow to react to it. We saw that similarly in europe. They allow the credit spreads to blow way out before mario draghi stepped up in 2012, but they have not done a lot since. They have been slow to act. In japan, they did not do enough monetary stimulus and they proposed a lot with with fiscalraghi but policy, they did little in japan in the 1990s. In europe, they have a problem of being able to coordinate this policy. The global flows look like, and why arent asian investors showing so much interest in u. S. Strategy . If we look at the yields through europe since june, they have plunged about 50 basis points or more. , you canelds practically overladen with the japanese yield curve. The demographics in germany look like they will be very reminiscent of the japanese demographic within 15 years. The economy appears to be an overlay. And it is not just germany. Italy, portugal, greece, holland. They all seem to be facing this kind of problem. So is mario draghi right, does the eurozone need more stimulus . Of all the policymakers makers in the world, he seems to speak the most frankly about the situation. I think he grasps the severity of it. He touched on this in jackson hole, it seemed like he was sending a warning shot then. Im not sure he will be able to do anything next week as many think he will enact something new next week. Im not sure that he will get in