It is part of the brand and the revenue stream and it has fallen behind both in the hardware space and the streaming space. Brings applenics the headphones that everyone wears. On the music streaming site you have beats music that has garnered a lot of attention. I do not know how successful it has been on the business side because they have not released numbers. Right, so is it worth 3 billion . Complex many analysts would agree that it is not worth any analysts would agree that it is not worth that much. What is concerning is that youve never had apple acquire a brand, ever do big deals. Billion dollar deal for what essentially boils. Own to a brand that is cool it is not a new technology. It will not move the needle on the technology front. Apple has a lot of money. Overseas but the money is not accessible. Debt tos had to issue give shareholders value back. Yes, it is a blip on their overall cash balance, but if you look at their operations, it is not a small number, he even even for apple. It is marking a real change for apple. They had not acquired. It was about organic growth. This could be a significant sea change. It can be, and what would be interesting to see is when the deal is officially announced how many executives like dr. Dre and iovine stay with apple. Part of the reason beats has been successful is because you have those music people behind it. They will get a big paycheck. Will they stick with apple and make sure the brand continues to stay cool . Thank you, cristina alesci. Credit suisse is doing everything it can to resolve the u. S. Investigation into whether the bank helps american clients even taxes. We are joined by it is 26 minutes past the hour. Bloomberg tv is on the markets. We are joined by market Erik Schatzker. What is at stake . Presumably, everything, because it is believed they bank can not survive a guilty plea because many clients and customers cannot do business, the theory goes, with a criminal enterprise. That is why we go with the term g to jail. Too bi that is why the Justice Department is considering a deal where the bank would plead guilty. Lets go back to your question how important is it for Credit Suisse . The chairman of the board spoke at the switzerland Shareholders Meeting and said it is one of the most pressing issues facing Credit Suisse. One is the keyword. It is not the key issue. Credit suisse is not looking at this question as an exercise joe one, and they have believe there is a existential one, and there is a way to resolve this that does not effectively put the bank out of business. Can they survive a criminal charge . That is what we have yet to found i find out. The assumption has not been tested in 20 years. Was a bank that failed in the 1990s, and then a business a bank but out of business by federal prosecutors. I have made efforts and i will continue to make efforts to date to find out what clients of banks have to say about this issue. I put in a call yesterday to calpers, for example, which is known for strict corporate governance. Do they have rules that would prohibit it from doing business with a bank that is needed guilty or is under criminal indictment . The answers are not that easy to get. I hope to enlighten myself and everybody else. They do business with faces such an action . It is an important question. In the meantime, what happens to ceo brady dougan . Brady dougan continues to be the ceo of Credit Suisse, and here is the thing prosecutors may demand that the ceo lose his job as part of a plea bargain. We do not know that is the case. Those are the kind of things that are on the table. The other circumstances in which brady dougan might, again, might lose his job, is if the board loses confidence, but all signs point to that not being the case. He has led the effort to reshape Credit Suisse, moving away from proprietary trading, some of the credit markets and other markets it has been in. The board has been supportive. Ive spoken to the chairman of myself about his support for brady dougan, and i do not get the feeling that the board is anywhere close to withdrawing their support. If he loses his job, it will in all likelihood be because the prosecutors demand it, but we do not know that such a demand has been made. Thank you, Erik Schatzker of Market Makers. President obama has found an aly in walmart capping off week talking about the climate crisis. He will anger some. Happybor community is not. Phil mattingly joins us. Why is this . When it comes to walmart, the white house does not always get along. Whitet comes to what the house is talking about today, solar energy, walmart is simply the best in the business. They produce more son into energy than 38 states, not companies, state. Walmart is committing to double their solar output through 2020, and in that time period they will produce about 7 billion kilowatt hours. The white house has a difficult balancing act when it comes to allies, but when it comes to solar walmart is the best in the business. But he seems to be aligning himself quite a bit with private industry he seems to be aligning himself quite a bit with private industry. Why is this . If you talk to people within business, they look at the white house has something that tries to malign business. This white house, knowing they cannot move anything legislatively, is starting to work closely with private industry to move initiatives. They are working on executive actions. They have 300 Companies Working with them on this Energy Efficiency initiative including home depot, citibank, goldman sachs, walmart, apple, ikea. Theyhite house recognizes will not move anything they want, so lets align with private is this is, and white house officials feel they have been successful with this the last couple of months. We mentioned labor, and their protest to the meeting. They will be protesting outside of the event. Is the white house ok with upsetting them . Labor has been clear. They are not happy about this. They have been more than willing to protest and say some damaging statements about why this is a bad idea. The white house understands that everything they do will upset somebody. They feel they are doing enough to help labor that they can do Something Like this and be ok. The grand scheme, the white house officials are comfortable. Thank you, phil mattingly, our white house correspondent. Hour, and shaking this ceo levy who agreed with omnicom to pull the plug on a merger. They could not agree on who should be the ceo. Levy spoke about the breakdown on a conference call. The fact the we are not realizing a dream does not mean we have no dreams. It is disappointing that we have this dream that is not going through, but it is much better to not go to the church that to the judge. We are divorcing before getting married. Coming up, the nfl draft. We recap the first round picks, and dig deeper into a story about how most rookies and their agents will not get the big money. Plus, the flight over Online Gambling, andine why Sheldon Adelson wants to ban it. We will talk to the first casino to take a chance on Online Gambling. What does he have to say about that . So, are you ready for some football . Draft began last night, and Jadeveon Clowney was selected by the houston texas, as expected, as the number one pick while crowd favorite Johnny Manziel waited two and a half hours before going to the cleveland browns. The lower picks even will make it out pretty well on the minimum salary of 375,000, but for nfl agents, representing rookies has become more problematic and less profitable. It was not long ago that nfl rookie contracts cap going out and up, but times have changed. Football has become not all that exciting a business in terms of representation of rookies. The 2011 collective Bargaining Agreement drastically rolled back rookie salaries and furthermore our cost with regard to training the players and moving them around has continued to escalate. The agent is now obligated to pay for the training of an nfl player. The 2011 labor deal also lower the cap on agencies. We used to be a 4 max. Now it is a 3 max, and of course the agents can charge as little as they can stand. The difficulty has been some competition reducing their fees as much as 50 . Why pay more for an injured when salaries are set with little bargaining room . The first contract has become standardized in all sports. A sevenyearold could negotiated as well as a top agent. Back in the days when we were creatingdable years, new concepts, you could get an athlete much more money than the player approximate to him. Not today. When you get to the second contract, we are talking about nuance, structure, differences. When you talk about the real money in sports, that is the second contract. You have to somehow keep the relationship through the first four, and or five years to get to the more profitable contracts, so at the entrylevel, like moths to the flame, agents still try to do football, but breaking in is a daunting task. Interesting. Joining me now to talk more about the agent pay structure as well as the top picks, we have sports agent eugene lee. Did you have any clients yesterday . Nobody went in the first hour yesterday, but we should get some action this weekend. With these guys, it is basically their first contract. As an agent to help them understand what the contract is all about . We take a proactive approach throughout the process, letting them know that once they sign their first deal they will come into a lump sum of money they have never seen before, and it is about being fiscally responsible. How do you help them . We align them with the right financial advisor, let them know there should be a budget in place. A lot of people do not understand that your nfl salary, as colossal as it may be, is paid out over the course of 17 weeks and if you do not have the right plan in place, you will spend that money. A lot of guys understand this, but it does not sink in right away because you are so young, that your career is going to be short in the nfl. You have to make the money last. . O you help them out the average nfl career is under three years. There is a finite window where you could earn a substantial stream of income, but it is andt preserving the income, transitioning into a fulfilling second. Career. Here any are there any pitfalls you clients not to sign . Mostar boiler plates. Every team has signing default language. If the player conduct something detrimental, like the michael vick dogfighting incident, the team can recoup the bonus. Specific make it reasons for default. We like to narrow it down, conviction, felony offense in the jurisdiction where the team is located we have taken a broad umbrella and narrowed it down. What did you think of the draft yesterday . I thought it went according to plan. I did not think the texans could pass up Jadeveon Clowney. If you kill the head, the body will die. Teams rushed drafted players that could rush the passer and protect the passer and you saw a runon tackles. And Johnny Football going 22nd question mark that was not a surprise . I thought he would go higher. He too dangerous . Is a playmaker. His intangible set them apart. They have a winner. There is so much hype around him. Is that a risk of that hurting him . Best,ce lombardi said it winning is not everything, it is the only thing. For Johnny Manziel, if he can perform and win like he did at texas a m, all of the critics and pundits will be silenced. Speaking about winning, richard sherman, who came out as last season,ar just signed a fouryear, 54 Million Contract extension. Huge. Does he deserve it . Absolutely. He was the best bargain in the nfl last year, playing for 555,000. Out of the contract, 40 million is guaranteed. No matter what. No matter what. Eugene lee, thank you for joining us. Breadwinnersmale we look at what happens when women make more money than men, maybe not in football, but other areas. Puttingat a concept cookies together with frozen yogurt. It could be the only thing that will save mrs. Fields. We will be back. First. Bloomberg. You are watching in the loop , live on Bloomberg Television and streaming on your phone, tablet, and on bloomberg. Com. Good morning. I am betty liu. It is 26 minutes past the hour. Bloomberg tv is on the markets. Equity futures are lower right now. 04 . Sdaq is off by we see the continued pressure on internet stocks that has been dragging down the nasdaq this week. Other top headlines inflation in china fell to 1. 8 in april, the lowest level in 18 months, well below the 3. 5 annual target set by beijing and it could add to worries about deflation in the worlds secondlargest economy. Russian president Vladimir Putin arrived in crimea this morning, the first time visiting the country since the annexation. Earlier in the day, and he celebrated the three day in moscow, marking the victory over the nazis in world war ii. Analysts. Ped the Worlds LargestHotel Operator says profit nearly quit drupal. Quadrupled. The cookie has crumbled for mrs. Field, the iconic bakery chains seen in malls. Brands international, and tcby are stepping in to roll out a new growth plan, combining both of those chains into one store, bringing mrs. Fields be on the mall. The socalled dual brand concept is part of a larger effort to boost domestic and international presence. Ofl courtney is the ceo Brands International and brought some cookies for us. Thank you. You are welcome. Cookies and yogurt go Better Together. Absolutely. They are the perfect match. They complement one another. They are brands that we have had in the portfolio for a long time. A lot of heritage. They are fun brands. We have been looking for opportunities to expedite growth and combining the two makes a ton of sense. Hundred you come to the conclusion . What was the data you look at . We look at our existing store base with mrs. Fields and tcby, and mrs. Fields what the mall lesser people will i continue to fall . People will that continue to fall . With more people shopping online, we have to figure out a way to differentiate, and we have these brands, and we figured out the best way to do it is to put them together, collaborate and find a synergy that exists between the two brands. You are looking at increasing your footprint, but youre not doing that in malls. And will be both and inmall, and outofmall experience. We could take mrs. Fields out of the mall and make it work. We can also create a third revenue stream, which is what you see here, our gifting item. We have a robust gifting. Com. Ion, mrs. Fields leveraging the expertise gives them incremental revenue stream. What is the franchisee and tcby . Mrs. Fields it is about 50 50. We started the cobranding strategy. We have one store the we converted from a mrs. Fields to a cobrand location. How did that do . It has lifted at 40 . That is a mall in chicago. Your franchisees say what . That franchisee said wow as they go along, there will be some learning, but introducing this third revenue stream, the gifting component you could have had that with mrs. Field alone. We could, but we never leveraged at. It was another moment for us. You had to he used to work with fritolay. We talked to the ceo of pepsico last week. She has been a big purveyor of a dual brand concept. I want to play what she said about why that make sense. The pairing of these two is like Peanut Butter and jelly. They just go together. They naturally go together. If youre creating a food and in thee portfolio, convenient space, you will be creating a pepsico. I would say that without a doubt. Your side at fritolay, what did you see that could support that . I left about 10 years ago. We started along those lines of figuring out where the synergies said,and like ingenuity it is like Peanut Butter and jelly. Chips and coke. Cookies and yogurt, they go together. In the summer you have the yogurt, and in the winter you have the cookies. A lot of that the other Better Together concept happens behind the scenes, so for her it is like what do the bottles think about it and how does that fit into Distribution Channels. For you, isnt more about what happens behind the scenes that will make this work . There will be a little behind the scenes, but it is giving partners an opportunity to incrementally grow the top line, which from our business, in a franchisee perspective, is what we need to focus on. Unit economics is so important, and for us to grow way to have a realistic, Sustainable Growth of revenue and profits. If you did not do this, we are you facing the possibility of having to close one of these brands . I do not think we were in the position of closing any of the brands, but it makes sense what we are really at a point where createsto tip, and this an opportunity to create a new business model, get to the next level, and reinvigorate the brands that have been around for so long. Everyone knows mrs. Fields. Theyey wear it before smell it before they see it. We want that sustained in the future. Courtney, ceo of famous Brands International. Thank you. Forng up, 10 rules breadwinning women. Make himnd abandons plans to create an advertising giant. Tell you what got in the way. There is a new economy where women are making more money than men, but what does that mean for your relationship, household spending, and even the divorce rate . One author found some fascinating facts about this. Great to have you with us. Emotionalhit a lot of points for men and four women, but so far, what has been the response . Wax people have said thank you for writing the book. This is a taboo topic. We do not talk about money in our culture to begin with, but when it comes to the relationship and the financial flip of is she making more, it brews a lot of opinions, but nobody had a rulebook. There is also a lot of complexity when you look broadly. When she makes more, there is more divorce, infidelity. Feelould feel he could em