Transcripts For BLOOMBERG Bloomberg Surveillance 20140429

Adam silver will talk about his findings on the alleged comments from the la clippers owner. Mercksonder if earnings will be different with the pharmaceutical frenzy. And four slabs being bought by activists and yesterday it turns around and says it will do its own deal in addition to that. Forest labs being bought by activist. And twitter different from what we saw from facebook . What may be. At the end of the day it is about monetization. A data check. Not that much going on in the markets. Up six. The euro, a little bit of strength. Vix, our next screen, the under 14. I was surprised by that. Vix. Is a better than good i put amazon, breaking 300, as it did during bloomberg surveillance yesterday. Putin gets ae as break in the news flow. Lets go to the chart of the day. Case shiller coming out. This is inflationadjusted housing. Here is 15 years, 15 years of quiet. Adam bought his threebedroom a a deck here terrace, excuse me. Here we are, down we go. It is remarkable how we are back to on an inflationadjusted basis. It does not look publishes or anything. Iscious or anything. Andf course, case shiller, betty liu will have that. We scoured the papers. The front page. Here scarlet fu. Our top frontpage story, a new round of sanctions on russia. Still targeted sanctions. It is putins inner circle who has to do with it. June in the u. S. Protesting russias actions in ukraine. The u. S. But seven people and 17 comments on the list. The white house says it does not expect immediate change of russian policy toward ukraine. So the plan is to steadily ratchet up sanctions that would cause more pain for russia over time. Me rephrase that, it sounds like more pain for individuals in russia who are close to mr. Putin. Very targeted. A broad sectors of the economy still spared for now. The banks did not get touched. Which, i believe, was effectively a german request. They did not want that. Second frontpage story, a followon to the almost 100 million 100 billion megadeal. Pfizer making the offer for astrazeneca. A uturn from the strategy of less is more, and another angle is pfizer could save billions of dollars in taxes because the u. K. Created incentives for drug makers to increase research and capital investment. Adam, you have been doing this for years. I can honestly say i believe i have never seen anything like this. The amount of deal activity a different color and character to it. You think just about what we have seen in pharma over the past week, six separate deals and they are all big. The fact ise been simply got too cheap. The runup and then the collapse. I think it is more than that. Money is for a. Money isnt free. We will see it with the apple bond deal. The guys about apples bond last time top of the market talk about deal of a lifetime the bond came at 100 and the 10year like if you are a cfo, why wouldnt you go out and borrow money . Every investment banker ought be going to every cfo lets continue this discussion. Our frontpage story, carl i can carl icahn and bill ackman ending their nasty dispute with a phone call. Bill ackman called to leave a message saying i am calling to return carl carl return because think it is a blessing to forgive and i forgive you. Their wives or girlfriends make them do this . Whats i wonder. But all of this has to do with herbalife. Higherthanexpected earnings, raised its forecast. Ackman at a bar having beverage of his choice and i saw mr. Ichan cross central park south. Behink carl was going to healthy. Going for his morning constitution. But just people. At the end of the day, where all people. Those are our frontpage story. Tom . And tom is somewhere in the middle of the second and third page. Im reading about the nba, i dont get it. Value of takeovers and not for 2014 reached the one trillion mark, reaching that level the fastest pace since time began, seven years. Our next guest host has a biblical understanding, chairman and managing partner of sunshine sonenshine and partners. Give me your book no one shows up to bloomberg surveillance look at that. Show the label. Bloomberg. Marshall, thank you. He wanted me to come on. I had one of my associates give me some stuff and i read. Let me cut to the chase. Have you ever seen anything like it as silly as it is . Four months into the year and hit a chilean dollars, so a run rate of 3 trillion in global m a. We had a trillion dollars. M a was the last market to recover in the financial crisis. But at a high in 2007 it was four dollars trillion 4 trillion. What is different now . Whats money is cheap. I think this is the First Time Since the financial crisis when the cheapness of money is actually part of the reason for growth in m a. Up until now the cheapness of money simply reflected a lack of conviction and belief in the just about anything. So, m a being conviction driven, we have to believe in the company in the future did not recover like equity did. As you talk to dealmakers, do you get a sense that they are saying we need to finance while the money is still cheap i get it done while we can . Yes, but i wanted to get a second point. It is very important. And you mentioned, adam, the apple bond. The last thing apple needs is more cash. But theyre buying back their stock. Second situation. But its important about this particular runup in m a is the Drug Companies. These are strategically driven. They are not financial transactions. These are Drug Companies merging theut costs, compete with generic drugmakers and figure out ways to get more product to market more cheaply. Within this conversation, what you and i have heard the last days or weeks is there is so much money the private equity boys will jump in here with normal mergers. No shortage of opportunities. You talk about conviction on the part of ceos is it conviction on the fear . T in the pharmaceutical sector, some is conviction and some is fear. They are under the own pressure and the need to merge to make it happen. Private equity is not going to companies they have a lot of dry powder. Can you say janet yellen or theyoxy ben bernanke that are causing this, the fed with distorted policies are allowing bill ackman to team up to go after allergen . Because they continue a policy of cheap money . , on i personally im surprised as a lot of people of wall street moneyat the era of cheap has gone on as long as it has. But i dont think they can of the luxury of worrying too much about that. They really have to worry about keeping the rebound going because it is tepid. Marshall sonenshine, we will continue this. Lets get to company news tuesday. We start what the fight over this French Company getting serious. German Companies Siemens preparing its own bid. General electric offer to buy theom any bid that values company at 13 billion. First quarter profit falling at bp. Earnings were in line with estimates. They have been improve the Balance Sheet after the oil spill of 2010. Disney is boosting investment in its new shanghai Amusement Park by about 17 . 5. 4 billion by the time it opens next year. The ceo spoke to Bloomberg Television about investing in china. Among decisions we made collectively as a Management Team is to invest in china, and to not just plant seeds but to plan big seeds trees that will hopefully feel Enormous Growth for the company longterm beyond my tenure. It means a lot to me because when i think about carrying out my responsibilities, my legacy, Shanghai Disneyland looms large. Is a Shanghai Disney world, Hong Kong Disney world and tokyo disney world. We just had a trip to disneyland in anaheim. I am sorry. Theres no alternative. It is the original one. I used to go there with my grandparents as a kid. You should be loyal to disney world. When my grandparents are tired and left iowa they want to southern california. There is a brass plaque on the blue teacup that reads adam johnson. All right, comment, pfizers propose near 100 billion bid for astrazeneca may have been invited by you ks tax policy. We will discuss that. This is bloomberg surveillance a Bloomberg Television and streaming on your tablet, phone, and bloomberg. Com. Good morning, everyone. Bloomberg surveillance. 2 in los angeles. Stephanie ruhle and Erik Schatzker at the Milken Institute conference. With theirem conversations, including the former Prime Minister of italy mario monti in a conversation near the 4 30 p. M. Hour this afternoon. Erik take on los angeles and Beverly Hills as well. This is bloomberg surveillance. Good morning. Im tom keene. With me is scarlet fu and adam johnson with us as well. Adam, you get us started on taxes or a lack thereof. Score one for shareholders zero for u. S. Taxpayers. Pfizer intends to reincorporate in the u. K. If it is successful acquiring astrazeneca. It would save pfizer millions and leave ordinary americans like you and me shouldering even more of the tax burden. Marshall sonenshine, i am fired up about this bit really upsets me, u. S. Corporations leaving u. S. Soil. What sort of backstop the regulators have if any . Forax planning multinationals is extremely complex. Remember, the dell deal there was a kerfuffle over where was it cash. As Pfizer Companies included, sitting on fortysomething billion dollars in cash a lot is abroad. The answers are complex. The fact is a pfizer pays 27 Corporate Tax rate, which is not so bad. And i think in the final analysis i dont think a deal reflects tax play but i think all these multinationals, whether in transaction mode or not, are intact play mode, looking to reduce and cut as they can. They are allowed to do that. Do you presume washington will step in that sometime . Not on this. Lets assume the senator from new york mr. Schumer will support wall street on this, which is understandable, what about the other senators . Chuck grassley . He could say whatever he wants, there could be political backlash on this. But it is very difficult for congress to correct the complexities of the national and global tax system. Our audience is saying why . Why cant they fix it . Why isnt there a way you can mark to incent a stay here. It is not all where they are incorporated where you make money. They will pay some tax in the united states. The look at the tax code your tax planning and documents reflect an inordinately complex thing and you are just an individual. I think it is not so easily fixed. Although politicians might like to ask for the moment, because it is in the news, as if it me isbp at what struck how outspoken pfizers executives are on the tax savings. Would that kind of old news prompt politicians to move . Same answer. I think it will prompt a little bit of political banter. I dont think these things are easily fixed or changed. There is a lot of complexity. With her democrats and republicans saying they have Common Ground to amend we have democrats republicans saying they have, ground to amend the tax system. Tiesou believe the fancy and chanel dresses of Corporate America will stay in america and pay the taxes if we go from 20 something percent down to 8, 9, 10 Corporate Tax . No, i dont. They will keep on moving to ireland or whatever . I dont think they are paying 10 , either. I think it is an overstatement. Apple is mid teens that is too low. That is true. And a lot of that cash is locked up abroad for them also. The same problem dell has. Effectively it is not a onetime fix, tax repatriation and you can bring the money back in an odd double taxed . Whats that is a solution. There are all kinds of tax schemes in theory that can happen but in reality they dont. Childrennt think dollars of takeout will be a catalyst for washington to get off their butt and have these to the unitedate states under i am all with you. I think it should be. Do you think do i think will happen easily and quickly . I dont. Taxow high consideration of arbitrage to other factors like strategic fit . I think this deal is much more about strategic fit. A billion dollars of tax savings per annum and this is 100 billion deal. I dont think that is that material itself. To benefit tens of billions of dollars. Weve got a deficit. We incur more and more that. Hasthat means everyone else to pay for. This conversation is important that it goes back to fair. People in america saying fancy suits and ties in manhattan are not paying the taxes they should be paying. Nomad or what we think no matter what they think, that is what they think. I pay 50 personal income tax rate because it because that is marginal and if i charge one percent selling a company if i were private equity, it will be capital gains. Is that fair . Whats the beginning of a rigorous debate. The beginning of a rigorous debate. Marshall sonenshine is our guest host for the next hour. Our twitter question of the day that we will be addressing later on how should the nba respond . The Los Angeles Clippers owner. The l. A. Clippers after the owner made some allegedly discriminatory remarks. Exceptionally discriminatory, if they are true. Tweet us bsurveillance. We want to hear from you. Good morning, everyone. Im tom keene. With me, scarlet fu and adam johnson. Today onler later housing. We will see what the weather does to that. It is a couple months behind. Lets get right to top headlines. Second day of violent weather in the southeast. Tornadoes killed at least 11 people in alabama and mississippi. Dozens injured. Scores of houses and other buildings damaged or destroyed. The storm that killed 28 people in the past two days. In credible. Secretary of state john kerry meanwhile says he wishes he had changed his language on israel. Not his message, however. He has been criticized for saying in private that israel risks becoming an apartheid state. He says he wished he had chosen different language to describe the belief that the only week two state solution. Danish restaurant noma is wanted in the worlds best. It is located in copenhagen. Known for foraged ingredients and its a new nordic cuisine. , is this a picture of the restaurant you got force. Beautiful. Noma, it looks like a place where you get nothing on your plate. Little itty itsy portions. That is the art. We are having fun. The chairs did not look comfortable. Like a two ounce torsion of us out for. Those are the top headlines. To dofistfight over what first. Morning mustread, adam johnson continues. We have been we have been talking about Northwestern University where the Football Players wanted to unionize. Morton schapiro says the following Marshall Sonenshine, what is your best advice to College Graduates . You really want to do. If you think you can plan a people who picked wall street had a little rough ride in the past decades. I have College Graduates, three sons, thats what i tell them. Very cool. Follow your passions. Up with fallout from l. A. Clippers owner scandal may threaten the team in the league. And that brings us to the twitter question of the day how should the nba respond at 2 00 p. M. When david silver hold his News Conference . Some breaking news. Energy future holdings, the wass Power Company that taken private in 2007 has filed for bankruptcy protection. Energy future holdings. Filing in delaware, after months of wrangling by creditors, owners, and management. A soap opera involving kkr, Goldman Sachs in on it as well. We are honored to have Marshall Sonenshine with us. We you involved in these transactions years ago . Was a 2007 transaction and part of the state of very large deal done at the height of the leveraged buyout market just before the financial crisis. 45 billion for operating companies not enron. Too much debt and too little price. What happened after 2007, Energy Prices came down and these guys were left holding the bag. In a bankruptcy like this, doesnt redound upon the original dealmakers kkr, Goldman Sachs, and tpg, or are others affected . It is a creditors territory, which is what chapter 11 is. I think that the bonds are going to have to echo ties and banks will have to take some stretching out or amendments to their term. The company will go on but without the equity. If there is a lesson we learn from the crisis is there is always a solution gm. Company is not broke, the financial structure. But you set the bond equity highs equitize. Make suggest kkr additional money moving bonds to equity . Do they take a loss . A all the echoing will take loss on equity. If any of the private equity firms choose to put more capital to work or somehow be an agent for change in the restructuring, they may make your money because they deserve to but they will lose the original investment. Energy future Holdings Filing for bankruptcy. Heres another story we have been following. Nba playoff action has really become an afterthought these days as of the league investigates racist comment attributed to la clippers owner Donald Sterling. Sponsors and Corporate Partners are rushing to sever ties with the clippers. What is next . A Bloomberg News correspondent and a partner who serves as cochair of recording obtained by tmz, epicenter of the. Sterling is heard telling a girlfriend supposedly sterling. Quick supposedly. Supposedly. Ok, we have not heard from him himself admitted to or denying his voice, yet few people are willing to give them the benefit of the doubt. Why is that . He has a history of saying and doing overtly racist things. In 2009 he was forced to pay the largest housing discrimination settlement and the history of the united states, and he was also involved in an age Discrimination Suit against a former nba legend in which a bunch of overtly racist statements came to light. It is just not surprising to people to believe this is actually serving on the tape on the tape. None of what he said is illegal. They may be despicable. Do his comments violate rules or guidelines . No specific rule that would lead to major action by the nba. Although there are significant penalties that can be imposed by the nba. And even potential suspensions. Under the constitution of the nba they have a right to suspend him for a definite or indefinite period the subject to a lot of questions. Culturally scene established the uproar. Post playing it up, donald duck and the rest of it. They were in san diego, they moved to l. A. It was a train wreck franchise. It has done better against the lakers. This is adam silver, the new commissioner. Law. Go how does he deal with the l. A. Scene . What irrespective of the l. A. Scene, he has to follow process. He has to respect the constitution, the ownership and follow a process that protects its ownership and protects the league. The big issue here is brand. The nba branded incredibly hot. Of talking about the games last night we are talking about Donald Sterling and the challenges the clippers face. As you noted, the team has gone from being a horrible team to be now a competitive team. Some thought had a chance to win the title and now we are talking about discrimination scandal, these horrible statements they need to really run down. To sponsors have leverage in this case . I think sponsors have the ability in this case we are starting to see sponsors walk away from the team. That is very problematic for the nba. The end of mr. Silver does it forces the hand of mr. Silver . I dont know if it forces his hand. The end position to actually fine and actually disband until they determine the real facts. I look at Michael Jordan being iconic do they just adam silver and start screaming . The players dont have a lot of leverage. There were calls for them to boycott the game. I think it is unfair for these players. Chris paul says we are not playing for our owner but we are playing for our teeny teammates and fans. Theyve been working toward an nba title theyre entitled their entire career. The people who have leverage other than the corporate boxes are the fellow owners, up to w hom it would be to vote on stripping sterling. The owner of the Houston Rockets met with adam silver, that he sould avoid of the contracts they would become a free agent. This is critical. Chuck cooper, Sweetwater Clifton and oral lloyd, we dont know them like we know Jackie Robinson but i would suggest no different. You mentioned the lacing. Commentsmade some about the scandal. I was appalled, frankly. Orld i believe that theres no room for racial intolerance of discrimination or racism, not at all. Whether you are a public figure or not, whether you are in business or in the Public Sector. There is just no room for it. That is a view from the business community. With adam silver at the helm, is he relying on david sterns advice and is david stern playing a role in trying to navigate what happens next . I am not sure he is but i am sure he is a confidant. But there is a contrary of executives and people he can rely on and lawyers that can help him think through the process. One thing to be very clear about here is the nba has limited rights. The nba cannot terminate his Franchise Agreement. Terminate his Franchise Agreement unless the other owners choose to do so and under the constitution itself, there are very limited circumstances in which you can terminate an agreement. Gambling, you can terminate. Actual racist patent statements is not specifically in the cost of tuition. You write angry oped pieces. What is the hot button for you in this discussion . I think what we mentioned at the top is we should be talking about these incredible playoff matches and for the first time in decades and the clippers are the talk of the town and not the lakers and instead we are talking about disastrous ownership that for years has been the most despised ownership in the nba, arguably, mostly because he tried running his team into the ground. But now we are talking about something that is mostly a distraction and it is unfair to the fans and unfair to the players. Irwin, could effectively mr. Silver remove the owner from operating the business and in effect, has nothing to do other than benefit from ownership of the team . Is there anything within the bylaws of the nba . Right toeve he is the suspend mr. Sterling, to suspend him and actually remove them from the team or the activity from the team but remove him from ownership, i dont think he has the right to do this moment. Were the lead counsel to guggenheim and Magic Johnson and the purchase of the l. A. Dodges. They sold the red sox, might i point out. Irwin just called up and said, write a big check. His backersnson and also said they were interested in acquiring the clippers. What is their next move . His is realtor luminary at this point. It is an expression of interest. They need to wait out the nba process and see what is next. The way the sale process works, the league has to set up a process and make sure they protect the ownership. You cant force an owner to sell. Look at the dodgers situation. The team was in financial distress and the legal pressure on mr. Mccourt to sail and ultimately he went through as a sale. So its just one step at a time. Thank you so much. N, and we have lisa davidson, bloomberg sports, miss. R twitter question. How should the nba respond . They will be holding a News Conference and adam silver, the commissioner, will be presiding over that to give their response to the alleged comments made i the owner of the l. A. Clippers. Coming up on bloomberg retweets the ards still carry some weight. We will talk about that. Good morning, everyone. Bloomberg surveillance. Im tom keene. With me, scarlet fu and adam johnson. Tuesday morning. Features a six. Dow futures up 45. Up six. Es what are we doing . Oscars of the internet. Does joan rivers to a preshow . She should. Ys, that giveswebbies awards to websites and content creators. It has been around 18 years. Funny 14 winners, netflix, Pharrell Williams and jayz as well as vine. You remember vine. Joining us now is david michel davies, executive director of me webby awards. So, some of the winners b, these Companies Made big splash already on it and a world where everyone is focused on the new and next big thing. Im wondering if an innovation is in websites, havent they moved to apps . 18 years ago we started a webbys would just websites but we honor mobile, social, online videos. Obviously the topics and where people are innovating on the internet is that much broader. Think still the general type of innovation is still relatively similar to where it was even 18 years ago. To pick up on the zeitgeist, maybe it should be called the appys. Aree joke that grammys named after the gramophone and nobody uses the gramophone to play music. We took the websites but of course well look at mobile and social and the new things. A scarlet said, we put the names up there and they are two of three years old. For you, where is the new . To you guys, Something Like x garter kick starter is not new but they raised about a billion dollars last year and it is a business that is growing and really transforming industries. Where is the next kickstart . I think we will see more stuff here in new york for sure. Something we have seen the last four or five years. The big topic of the community is when is new york going to have its twitter and facebook. City is really ripe for innovation to come from new york. And we are seeing it from all over the world. Who is on your list as a candidate for next year that might make it . Something like secret these days, the anonymous social sharing app taken the west coast by storm. Plus i take a photo and put it out on instagram. I scarlet mentioned, the apps use everyday, ive a part of the ego of the webbys to honor them as well are they part of the ego of thewebbys . A lot of apps people use every day. We honored instagram a couple years ago. Is thear kickstarter breakout. Many people are funding. What people are using today and what is meaningful in their lives and what is coming up. Ads youof the awarded was the John Claude Van with the split. What am i looking at . Jeanclaude van damm doing a split. The automatic steering is so accurate that you can actually do that. I thought that was matt miller in is less remote. Those trucks are moving. He is being held by an invisible string, to be fair. In the first years of the webbys, it was silly and quirky. Now it is being more corporate. I you doing nothing more than rewording best efforts from pr agencies and ad agencies. They tend to dominate. That is not what i would say. We look at social. We are honoring nasa, music kickstarter. Rrell, i think it is a healthy mix. The industry has changed a lot. Back 17 or 18 years ago the web was a place essentially created by artist and sort of a niche , and today a lot of agency to become internet agencies. Making ads but also making site for the New York Times and Media Companies like vote. Vogue. One of the winners this year, airbnb making a little news. Heres what happened. Ng properties in new york city because they say the hosts were not consistent with what the company was trying to promote. New York State Attorney general Eric Schneiderman says they were about to get taken to court and he basically saved themselves by effectively shutting down. Disruption and doing it differently outside the regulators, yet here come the regulators. Marshall, what is your take on regulating effectively agreements between consenting adults . It is a consumer product. If people are going to sign up to stay at somebodys house you might want to know a few things that you are going to provide some things. It seems fair game to me given this is a consumer business. It is indeed. Maybe it should be taxed like one. Even michelle davies, thank you, webby awards director. Michele davis. Coming up, itunes account versus amazon account. You have both, right . A base hit lee. Tom has both. You might be surprised to learn one is growing much faster than the other. Coming up next on bloomberg surveillance. This is bloomberg surveillance. Im scarlet fu with adam kane and tom keene and adam johnson. At t will take to the skies to challenge go go, the company that provides Internet Service on planes. At t plans to start offering wifi on commercial flights by the end of next year. Te technology. G l yahoo Ceo Marissa Mayer hoping that, they will draw more viewers to his website. Two new comedyut shows. One about a progress bar team and the other coming from creators freaks and geeks. One about a Basketball Team. Verizon to make his programming as easy to access and watch as hbo. This follows a similar deal with comcast. Say will editorialize and yahoo is just the labeling. 12 balls in the air. Old are using i dont know why. But every single announcement. Like, really . Whats paying hundreds of Million Dollars paying hundreds of Million Dollars for katie couric. Industry analyst shows the apples active accounts. We know investors give amazon the innocent of the doubt that the number of active accounts, credit card on file. Relatively small compared to apple. We know investors do not give as much benefit of the doubt to apple these days. Tim cook highlighted on the recent Earnings Call that itunes was now one of the main drivers of the companys business. But everyones focused on the next big hardware. Religiously. Io go rightaddictive to over. How much do you spend . I dont even know. It is free. Happens that she have a song you like, it is a great tune, you hit buy. But theyre killing me with a cantatas. H like 20 bucks, boom. Are you and apple user, itunes and amazon user . I am. Amazon books amazon prime. Your credit card on file. Everyone has my credit card on file. Stuff and i the web think everybody does. But apple has a lot more active users than amazon does, which surprises me. The chart shocks me. I wouldve thought amazon will be bigger. Again,e is the chart itunes exploding in size but i want to get ready for our next hour. Richard ravish, former Lieutenant Governor and ran the subway when it was a thankful a thankless job. Where is your wall street going to be in 10 years . First of all, i started working on a book just before the financial crisis on the subject and win the crisis hit i decided nobody knows where wall street will be. I think the major banks in the country are universal banks of the european model with more capital, so compensation rates have come down. Second, i think wall street in the last generation has invented a lot of products that it cannot control once invented and i think wall street will face a tougher, stiffarm or inflexible regulatory environment. Do you think they learned their lesson and we will not see the next generation of precisely it is because wall street is an industry that pushes the back of the envelope. They will take a good idea and do it until it is a bad idea and they invited more regulation. All the regulation, doesnt mean the talent the top universities will move somewhere else . Businessh at columbia school, and they still want to go to wall street. You may not make as much money as quickly. But it will always be good to know how to move money. They dont want to go to silicon alley . Like some of them do. You see in more at stanford and columbia. Thank you so much. Marshall sonenshine, as we look at incredible dealmaking. More than 1 trillion so far this year. A forex report. Drupal front desk the ruble front and center. Front and center. A stronger russian ruble also sanctions that may be not as bad as what some people expected. I noticed goldbach under 1300. Gold is under 1300. Coming up next, m a. More than 1 trillion of deals announced so far this year globally. Wall street digests adjusts to a trillion dollars of deals. Does it signal the top of the market . Mr. Putin adjusts to new sanctions. Could the sochi olympics happen today . The city how to avoid doing it detroit. This is bloomberg surveillance. We are live from world headquarters. Im tom keene. Joining me, scarlet fu and adam johnson. We are honored to bring this our the formeritch, Lieutenant Governor of new york and former chairman, Senior Executive of headaches for the mta in new york. Go to our official subway rider adam johnson for a brief. Overnight u. K. Economic growth accelerating in the First Quarter amid signs of a recovery is broadening beyond consumer spending. Gdp in the u. K. Expended 0. 8 . Economic data in the u. S. , 9 00 we have the s p case shiller home price index and at 10 00 Consumer Confidence. Bell,gs before the coach, sprint, mark. Scarlet fu, you are dying to get in here. A coach just reported, . 58 share, beating consensus but sales trailing average estimate. We were talking about that last week. Michael kors seems to be doing everything right and coach with a growth stock but seems to have shifted. After the bell you have twitter then atand ebay and 2 00 p. M. The mba will hold a News Conference. The commissioner adams over talking about findings and the investigation of l. A. Clippers owner Don Sterlings alleged comments. A lot of company news. It follow on from yesterdays big announcement. Not a formal announcement but if pfizer ends up by astrazeneca the giant drugmaker could face billions of dollars save billions of dollars of taxes in the next decade. It would allow them to move their headquarters overseas where taxes are lower. Last year pfizers tax rate was 27 and Ashton Zeneca based in london had a 21 tax rate. Bank of america Dividend Increase my night might not be dead at all. It had put it on hold after making a mistake on the capital statement submitted to the federal reserve. The ove may ask bank of america may ask the fed if they could boost. Herbalife has fresh ammunition in its fight against bill ackerman. It posted betterthanexpected earnings and raised its forecast and it also suspended its dividend, giving it more cash for share buybacks. It is being investigative for claims it is a pyramid scheme. Separately the wall street ackman reports bills and carl icahn have made peace. Fromtthew levine bloomberg view, had a superb essay on herbalife, particularly the cash flow. You worldwide on Bloomberg Radio and television, simply, new york city, could they be the next detroit . Was born thech year fdr became president. He has seen the boom, decide a of bus and rejuvenation of his new york city. Truly a primal scream for new york and other cities to get there acts together now and not become detroit. In the larger picture here this is about american fiscal policy. What are we doing wrong . Doing what is wrong the solution, the bankruptcy in change in the a long that new york city has to budget in accordance with generally accepted accounting principles. Never hadrk city has a fiscal crisis since then and nor is it likely to. There will be debates about how much taxes and how much ill never facewe w the kind of problem the 40 detroit faces, the inability to pay their debts. Within the hour i want to get it out of the way a principal owner of the company, i believe was a former mayor of new york city. Critics say any hightech city is a dead city. New york proves it wrong every day. How can we be high taxed and still be the vibrant city we see everyday . Because newn part york is still a place people all over the world want to visit, come to, live here. There is still place for opportunity. The incubation of businesses and talent continues unabated in this city. An extraordinary place. How do you do that and still make sure good people want to work for new york citys government . We need to keep running the city and the pension expenses that keep running up is threatening to do any city in . York hask the new problems with its pension system, it is not as badly funded as many other places like californiake teachers system, 100 billion underfunded. Some tough issues that lie ahead here. New york city is inextricably tied into new york state. Were present in this city the largest source of revenue were present in the city the largest source of revenue for the state but it is also true the state provide a great deal of money for the citys budget. So if the state is not doing as well as the city, that is a concern. At is what i love you link the state fiscal process in with any given city fiscal process. Here is a quote from so much to which does address the a motion particularly those, good morning, waking up in the in midwest. What is the obligation, of a givenitch, nation estate to assist in irresponsible city . It is hard to say what the obligation is because it does not exist editorially. Cities are constitutional creatures of states. Can change the governance of a city overnight, as michigan did, with a law that e will create a manager to run the city of detroit instead of the elect the mayor. That it is also true in the case of detroit that detroit is less than 10 of the population. To guy for a hack huge hairy, the tough guy. Every photo of richard ravitch, sitting next to an elected politician smiling and happy and you are the one who has to go out and get it done. What did you do for huch carey in albany to assist new york city . With the unions, the banks, the people in the Treasury Department and to theed the problems legislature, the financial others werend i and able ultimately to persuade rybody to make concessions that making concessions to avoid bankruptcy was far more compelling would have been absolutely amazing. Ford toheadline new york, dropped dead. He goes back to the 1970s. You look at market forces. In detroit, they are bulldozing houses. How do you strike the balance of letting the market figuring out what to do and regulators coming in and government being activist . Where is that balance . Is in worst shape, i suspect, than any other place in the country. Why . Because of for so many years nobody paid sufficient attention to the deteriorating demographics and economics i dont know. I am not familiar with that. Now they have a series problem. 100,000 creditors. 18 billion of debt. An extraordinarily talented group of people working very hard around the clock to try to resolve it and come up with a consensual plan in bankruptcy to ensure the continuation and growth of the city after all. Do we rip up the script . Look at this photo. For those on radio, there are nine tuition checks lined up. I cannot remember the names of the middle child how do you remember the grand childrens names . The source of the greatest joy in my life. I know them all. [laughter] great. . What is your prescription for the next city that still could be a detroit but has time to fix the problems . The temptation for politicians to kick the can down the road is inexorable. As long as what you call the market will make money available to cities and states through loans and the issuance of bonds, they can kick the can down the road. So they are just accumulating a vast amount of debt rather than cut expenses or raise taxes, which are politically far less this cominghan future revenues. That is the fundamental by lima dilemma. The federal government is keeping his hands off. Being the ravitch, adult in the room as we face fiscal challenges. Lets look at equities, bonds, futures, commodities. Of six. The euro a little stronger. I will call it a quiet day today. In the 9 00 hour. And Consumer Confidence coming up at 10 00 a. M. As well. Conference board number. Coming up, pfizers almost 99 billion offer for astrazeneca shining a spotlight on global m a bit more than a trillion dollars of deals announced so far this year around the world. We will discuss on bloomberg surveillance. We are on Bloomberg Television, streaming on your tablet bloomberg. Com and. Good morning. Im tom keene. This matters now to our guest host. Richard ravitch, former Lieutenant Governor of the state of new york. Chairman of new york citys venerable mta. In london, the tube is down and the new york city the subway is up and running serving 1. 7 annually. Ders so much to do. You talk a lot about the subways. What was the worst moment in running the lousy thing we love and adore in new york city . The worst moment is when somebody tried to shoot me. That would be bad. Police ortely the wonderful. I had to wear a bulletproof vest for three years, not exactly fun. Rememberis not what i most. What i remember most is getting money out of the federal government, out of the state legislature, and rebuilding the subway system and putting together 14 billion at a time 14 million at a time when the system was literally falling apart. Since, i am proud to say, they follow the precedent i said in doing a fiveyear plan and getting a funded. I think for the First Time Since the 1980s, there is serious questions about where the mta will get its money for the next fiveyear plan. For the worldwide audience we go to london, there is a certain character to the infrastructure, including limited cars downtown. Paris, different feel, shanghai, different feel. What is your to do list for new york city to emulate best practices around the world . The on the ground management of our subway system has always been first rate. Yorksblem is that new system is actually bigger than all of these other cities, and it doesnt have an does not have discrete lines. London, paris, hong kong, there are 11 or 14 separate lines. And you are given your geography and geology, arent you . We have two systems, the independent irt system and the cars are not fungible between them, the tracks are different. Spread out, 700 miles of subway. I have to make some news. Oar over horses in central park. I believe in horses and carriages. The first time i ever kissed a girl was on a horse and carriage. Breaking news, the first time he kissed a girl was in a horse and carriage. For the first time in ages, im speechless. Trying to figure out where to go with that with richard ravitch. We will be back. So much to do. And the girl in the horse and carriages in the book. It is bloomberg surveillance. Good morning, everyone. Bloomberg surveillance. Our twitter question of the day thank you for your many answers. As one goes to an emotional moment this afternoon, 2 00 p. M. , adam silver from the nba will discuss the train wreck of the l. A. Clippers and the owner, the allegations. How should the nba respond . For all of you worldwide, bsurveillance, how should the nba respond at 2 00 p. M. Today over the uproar . Scarlet fu and adam johnson. Our guest host is richard ravitch, author of so much to do. Former Lieutenant Governor of new york. The second day of violent weather in the southeast. Tornadoes killed at least 11 in alabama and mississippi and Dozens Injured and scores of houses another buildings damaged. The storms have killed 28 people in the past two days. Kerryary of state john says he wishes he had changed his language on israel, but not his message. He has been criticized for saying in private that israel risks becoming an apartheid state. He said the risk thats wished he couldve chosen different language to describe the only way to peace is through a two state solution. Noma issh restaurant wanted in the worlds. According to the worlds 50 best restaurant academy. Located in copenhagen. Known for forged ingredients and its new nordic menu. Those are your top headlines. Should we do the show from copenhagen . Tonordic, i have to get up speed. Think fish, boiled potatoes, cheese, and bill. Dill is on anything. Its good. Eal week. A d month, year. Takeoversnkers, topped the one trillion mark. It is the highest in seven years. Whortner at jones day focuses on m a and he gets no sleep, either. Bob, a perfect storm. What is behind this whole thing that seems to have come out of nowhere . Come out ofhasnt nowhere. I think the business element is we have not had all of these external shocks. Ve been sayinga for quite some time, the macro environment is very good for m a. Believe it or not, low growth is very good for m a. Unbelievably fabulous capital markets. The pe multiple. Lots of foreign cash, a factor in a lot of the stuff we are seeing these days. Balance sheets. Whats wrong . What do you have been coming out and talking you have been talking about all of that a year or two and then the last year it took off. I think what happened as washington and the eu were off the front pages of the financial media. We dont have all this fear based is the eu going to break up. Downgrading the credit rating. Paralysis in washington. On this. E an expert take us inside how these things occur. I know you are going to say each one is different. But what the pfizer do . The call course to up . How are these transactions initiated . They are all different. Sometimes the seller initiates the process. Some things we see quite recently is not hostile deals in terms of the 1980s sense of the term, publishing a tender offer him a but and initiation of the buyer. We saw a lot of that this week. At least the potential deal announced this week was on this basis. Meaning, the companies have very big and very elaborate Business Strategic Development departments. Theyre looking at where to invest best deploy the capital. Usa and most are Strategic Decisions within industries, with you are saying most are Strategic Decisions within industries. Is Capital Allocation and there is tons of capital and a lot of companies over the last two years we have been in an era where stock buybacks, Dividend Increases, all the rest of that companies have been doing well, at least for american companies, but have not been investing not just m a but across the board. Was down. Until a real pick up in the Fourth Quarter of last year in terms of durable goods investment and all the rest of it. And companies are spending money. That is probably good for the longterm. I want to get your thoughts on bill ackman and how he teamed up with another company to acquire the first company, allergan, in this case. Is that a blueprint . Give an activist investors are playing such a bigger role . Question that socalled activism is a permanent asset class. It is not just carl icahn complaining about the board being incompetent the different ways to apply for capital. Frankly it is a very ingenious approach. Is just a fancy suit, like those people wall street. His wall street were engaged in your world than in prior days . You had a meeting and citibank where he will walk out of the room to talk to arthur burns. Is a different today question mark is wall street more attached . Wall street the Financial Community in new york city is less involved. Theyber in the old days, owned the premises they occupied. They were the major holder of the securities they underwent. So they had a more direct connection with the Financial Wellbeing of the city of new york. Municipal industry is a very important part of wall street. They are intimately involved in the financials of cities and states all over the country. Just extraordinary, the times we live in. 4 trillion this year . We could be. We are tracking the rate. I thought we might get into 3 trillion. Usually im in a Global Market trillion. O and a half thank you, sir. We will let you get back to work. We will continue to keep an eye on the m a headlines. Coming up, a new role in hollywood. We will talk to a man who calls himself an accidental tax broker. Who is making money on his new model. What color is the storm a dark and stormy night. The winds rose and the waves blue. Is, three days in a row, rain coming to new york city. But a beautiful view. That is richard ravitchs new york city, he was the former Lieutenant Governor and former director of the mta. It is bloomberg surveillance. Good morning. You, as weitch with look at a gorgeous shot of new york city. From beautiful los angeles, Stephanie Ruhle and Erik Schatzker at the Milken Institute conference, ideas in action. All day today. They will speak with the former Prime Minister of italy mario important conversation, 4 30 p. M. This afternoon as well. Looking forward to the coverage. Googood morning. Company news. The fight for the French Company German Company siemens preparing their own bid. General election has offered to buy alstom with a bit that values the company at four 13 billion. Profit falling at bp, the second is secondbiggest oil producer in the u. K. Ceo bob dudley called it a very solid start to the year. Trying to rebuild the Balance Sheet since the disastrous gulf of Mexico Oil Spill back in 2010. Yahoo Ceo Marissa Mayer is looking, and he will draw more viewers to his website. Yahoo will debut two new comedy shows one about a proBasketball Team and the other by the creator of freaks and geeks. That is todays company news. Going toany is not save videos is a big part. Kind of obvious. The mantra of the moment, the 47 different flavors of what we have. We have a mantra of the moment, 9 00 this morning, dont forget our economic coverage. We will have it on Bloomberg Radio and television. Caseschiller. Soggy housing data. Yearoveryear, the survey up 13 . Terrific number but its got this to it. There has been softening in the housing data. Pending home sales, existing home sales, new home sales all going down. Michelle meyer upping us from bank of America Merrill lynch on that as well. Erik at milken. Speaking to lots of highprofile guests, including disney ceo bob iger. He talked about wanting dominating the headlines. The alleged comments by the la clippers owner Donald Sterling. Take a listen to what mr. Iger had to say. I was appalled, frankly. We lived in a world where i believe there is no room whatsoever for racial intolerance or discrimination or racism, not at all. Whether you are a public eager or not, whether you are in publics or in the sector, there is just no room for it. Of course, adam silver him of the nba commissioner, will be giving a News Conference at 2 00 p. M. Today to give the nba after response to the investigation. As we discussed earlier, there is not necessarily a legal way to go after to force him out but if you look at the sponsors, pulling away and it begs the question. Whats adam silver out of university of chicago law, new name in sports. Richard ravitch with us. You have known him for years. Tell us about him. He is a talented, brilliant young man with a great sense of values. He will need a sense of humor like you to get through this. I am sure he does. His father, by the way, represented the city of new york with ed koch as mayor when we were working through the aftermath of the fiscal crisis of 1975. Selected, i think obviously by the owners, but with david sterns choice to succeed him. Has both the intellectual capacity and the sensitivity to handle this difficult situation extremely well. Gets you a long way in what you do. Whether you and ed koch screaming you guys are screaming at each other and then easter in it out. We screened during the day. He used to like and go on television saying if you dont like the subways, dont blame me, blame ravitch. [laughter] then we would go out to a Chinese Restaurant for dinner. You cleaned them up. The graffiti was a disaster. You cleaned it up. It is amazing how just that. Me to put walls of the subway yards, and i thought it might jeopardize some of the kids who were not really criminals. They were adolescents that got there kicks. But we resolved that also. Ed used to like to make a thing about it. He is missed every day at the world headquarters. The major used to come. You heard, some the disney ceo bob iger. You can catch the full interview at him on Market Makers 11 00 a. M. This morning. As tom mentioned, the caseshil ler home price index and before that, futures are moving. Good morning. Onoomberg surveillance Bloomberg Television, radio, worldwide. We welcome you to Digital Media as well. Bloomberg radio plus and bloomberg tv plus and many of our interviews out at bloomberg. Com podcast and the video images as well. Im tom keene. With these, with me, colorful and adam johnson. Barely describes the Public Service of richard ravitch, a new book so much to do. Pages of needed perspective of being the adult in the room. Richard ravitch joining us this morning. Location, location, location, the rallying cry of real estate. A movie and tv production business, tax incentives linked to location a specific drive. California trying to keep its moviemaking magic and space studiosorgia attempting with text credits. Our next guest says the business of trading the tax credits turn him to an accidental broker. We are joined by rick, partner of george entertain the credits. Welcome to bloomberg surveillance. Is it fair to say and some may say this you on the company are exploiting the patchwork of state programs to film and tv production, at the expense of taxpayers. If we are know necessarily exploiting taxpayers. The situation arises where there is an Economic Opportunity to expand the economy in states like new york and georgia georgia being newer. But we experience really positive growth going from re2008 direct spend into this state, 120 5 million and now about a billion dollars a year in georgia. Tax incentives to the prophets a primary consideration . Does anybody film are a movie or tv series without some kind of tax concession . It comes into play in a great way. They are really in response to a business going overseas to canada, former eastern bloc, australia and new zealand and in the unitedlly states, states become more competitive. Every time a production is determined to go into to a particular location, as you say, tax credits to play an influential part because they are definitely just generally 25 to 30 of the local package. I understand the local thernment wanted to create incentives, but why allow them to be transferable so they can be bought and sold back and forth to wealthy investors . This. Scenario is there are 39 states that participate in some form or function with these tax credits. Of them, only 13 other states and puerto rico include a transferable notion. The reason it is transferable in my state, with which i am most familiar, is because our state obstetrician and tax laws do not permit any other type of form. It has to be in a transferable form. It does not allow independent taxpayers, anybody with georgia techs liability to participate, not just large corporations. House of cards just reached two for maryland the new season. They negotiate ad hoc along the way . They have thenk parameters to negotiate independently but they come up with an annual fiscal policy, it has to be a line item in each state budget. Using maryland, they had 5 million per year incentive program. I had to expand it to 15 million to be able to retain house of cards. You are the strangest things in this racket of tax credits that you have done it. You are an actor did you really work with lou grizzard . I hate to say. He passed on. But i was one of his ghost writers. He became ill overseas in russia and i helped him. Part ofepresent a huge hollywood history. Are we losing hollywood because georgia, new york, and toronto and vancouver are stealing hollywood from hollywood . I dont think we are losing hollywood. I think we created other opportunities for hollywood to put in play of the resources. Gypsyaged see it is a business to the open. Hollywood is not going away the same way new york is not going away. Georgia becomes an additional playing field, just like the other areas he described. Thank you so much for sharing your experience. Tz, financier. We have our twitter question. The News Conference coming up at 2 00 p. M. Today. How should the nba respond to all the allegations about what mr. Sterling says . We just bsurveillance. We will be right back on Bloomberg Television and radio. Good morning, everyone. It is a very busy morning. Change my bowtie around here. Bent, to say the least. Dow futures up 49. Scarlet fu and adam johnson, lets get to morning movers. In thees of gogo falling premarket. This is wifi in the air. They provide Internet Access all commercial flights. And never used it. It is awesome. Paul sweeney of Bloomberg Industries sent me a note just a little while ago saying he is watching Bloomberg Television on a United Airlines flight. Excuse me but when its all of you worldwide and on United Airlines. Shameless plug. It is accessed. Whether sitting 35,000 feet or whatever. At t will mount a challenge will go because it introduce the wireless on commercial flights early next year. Wifi on the Staten Island ferry. Actually, by the way, you can bars in thefive subway. What else do you have, scarlet . Coach. Life ladies in your by the way, the number one handbag maker in the world. But it might be losing the moniker. Sales down 21 . Obviously way more than expected. It also follows last quarter where sales were down or team percent. The stock is down 3. 5 . Not pretty. Part of the fashion wars. Get to our earnings edge. Twitter is afternoon. A lot of earnings coming out. After the bell, twitter. Obviously, you day. Tomorrow, if we fyi, time warner and yelp. Worldwideto bring you two experts on what cities need to do to bring film in ric actor, writer, producer, with george entertain the credits to bring film and television to george and richard ravitch, his book a much to do, enhancing efforts bringing the great scene from the french connection. The loss of revenue that comes from these tax credits is having a very devastating impact ability to meet how do you balance it . You bring in the salaries and honorable and proper profession given the law that encourages that activity. Is i think the public entitled to what evidence that those tax credits are essential for that activity to occur. I think people make movies in new york because new york is new york. Not because of a tax credit. Very quickly. How do you defend against the ageold idea they are taking it from us. Again, inpeak, once particular to georgias case. This is a case where we end up breaking even in our scenario as far as roi. Expanding economy. With a different set of tax collections. Each estate individual. Ric, thanks a lot. We will be right back with our agenda, including the fed, coming up. This is bloomberg surveillance. Im scarlet fu with tom keene and adam johnson. Our guest host, richard ravitch, author of so much to do and former Lieutenant Governor of new york and former head of the mta. At t taking to the skies to providee gogo to Internet Service on airplanes. At t hopes to start offering it by early next year. It plans to use four g lte technology. Yahoo Ceo Marissa Mayer hoping, they will draw more viewers to his website. Yahoo will debut two new comedy show one about a pro Basketball Team and the other from the creator of freaks and geeks. Netflix agreeing to pay verizon for better access to the fios Broadband Network after striking a similar agreement to comcast. No word on the financial terms. Netflix trying to make its programming as easy to access and watch as hbo. News from the files of bloomberg west. Of the came out depression. World war ii, korea, the optimism of the 1950s and early 1960s. America and new york city was ascendant. Is concerned we have so much to do and quite possibly we will do it without paulikes of fdr, ike, and volcker as well. Former Lieutenant Governor of the state of new york joins us. Dds so much to the history of this great city. Paul volcker, i see him Walking Around manhattan, vibrant. Where are the future Paul Volckers . Are they out there . I hope so. Very few by definition people who can fill those shoes because it is an unusual combination of brilliance, integrity, and a family deep commitment to the public wellbeing. But many of those people are choosing not to do what you do you did, which is Public Service, because you are a pinata in the media today. Dashwood paul volcker now the wood he did then . I am not sure. I suspect so. I dont think paul had any inclination to do anything except serve what he considered to be the public interest. How do you respond to the polarity of washington wanted to whether any given or any given city, boise, idaho, or new york, where it is a oneparty city . Is ourink what happens society made a lot of commitments that we cant currently afford to keep. And therefore the stress between those obligations and our resources is creating an enormous tension in our politics. Because if you cant meet your obligations, whether two people who let you money or people who work for you for 20 years, youre in desperate need of cutting other things and that creates a polarity in the political system that has gotten very, very nasty. Page 230 in your book, the isgest weight on expenditure medicaid. States spend 25 of the budget on the program. I dont think you can change that, if you believe, as i do, that the government should provide health care for people who cannot afford it for themselves. Is, whation again portion of that should be paid for by the federal government and what portion by states and cities question mark new york city pays its own share of medicaid, which is a big word in on new york citys budget. There are people like myself who think the federal tax base is a better place to cover the cost to providing health care for americans. I want to go back to your link with all full girl. In 2012 you cochaired the state budget crisis tax force where you put together a report that reviewed the fiscal strength of u. S. States. What keeps you optimistic about the state of Public Finance . Us honest what keeps optimistic is we lived long enough to have seen the united win a war, and racial segregation, beat the soviets in a competition. Those were much tougher problems. Hese are eminently solvable people have to get something off that some people will have to pay a little more. It is solvable and i think paul does, too. This goes with the disclosure that the former mayor of new york city, michael bloomberg, is a principal owner of both Bloomberg Radio and Bloomberg Television. Mayor inravitch, the his final speech at the Economic Club of new york i thought was front and center in his concerns negotiations with unions in new york city. Whether new york city or los angeles, other unions today the same heated battle with years ago . Fundamentally, yes. They are professional people who represent the interest of the people who are members of their union. And they do it with varying degrees of skill. But you have to remember that there was an collectivebargaining with Public Employees until the 1960s. You were learning. What would you do for the city of london right now . Do we need to fly ravitch over to london to resolve the tube strike . We need him here at home. One more question for the Lieutenant Governor . We talked about unions being made up of professionals but Union Membership certainly private unions have fallen off whereas those in the Public Sector have increased. How has that changed our negotiating capabilities . It reduces the leverage unions have in the country. Is truth of the matter decided picked up a lot of the cost of providing health care and providing old age assistance to people, was 50 years ago the only way the average working stiff could get those benefits was through collectivebargaining. There was a different underlying economic equation that has changed the power of labor in society. Lets get to our agenda right now, which is where we look ahead to the stories making the news of the day. Linksouve got one that up with paul volcker as well. Interest rates, free money, m a, a boring meeting i am told, a twoday meeting of the federal open market many begins today committee, and Grilled Cheese will be served. If it is with the tomato is signals one thing and without, another. Janet yellen and her fed will do it again without a press conference. Michael mckee, our chief economic correspondent, suggest this would be a quieter meeting. I dont buy it. Usually when it is quiet, maybe when you see some noise. Sort of like what we saw with apple the other day. I wanted to bring up the point, i am watching the fomc. And tomorrow we get the announcement were presumably there is another 10 million a month paper. Ler housing index, prices expected to go up 13 . But remember, as prices go up it is harder to sell homes and over the past week and a half we have seen new home sales, existing home sales and pending home sales effectively declining. To there two sides equation. Prices going up is good, but be careful. For those on Bloomberg Radio i just got a surveillance paper cup. Cut. If i get blood, a fourminute minor. Get a tourney kit, please. On my agenda is the ongoing controversy dominating the nba. Forget the playoffs, everybody talking about clippers owner Donald Sterlings alleged comments, racist comments. 2 00 p. M. Today and be a commissioner adams over will speak and present the leagues findings of the investigation. Our twitter question of the day how should the nba responded to 00 p. M. Eastern time today . The first answer smart response. Thank you for that. Second answer well, this is very emotional. Understandably so. Comments are despicable whether or not he made them. It appears he made them. He has not said. It is despicable, weber said them. Finally these are not illegal, to anything that he cannot be forced off are saying. Which means there might not might not necessarily being a legal recourse. Thank you for really smart with answers. These are great. Thank you. Richard ravitch, thank you so much for coming by today. Look for the movie memorial day aekend, 2018 so much to do, full life of business, politics. Coming up on Bloomberg Television, disney ceo bob iger on Market Makers at 11 00 a. M. And in the loop is next. Good morning. It is tuesday, april 29. We are live from bloomberg world headquarters. For bettysteel, in liu. We have a great program. Gregory born is in the national is in the loop. Rayborn is greg in the loop. Ice creams president will be with us. They are turning 80. It is never too early to eat some ice cream. Think america might ask the fed for permission to increase its dividend. Hold because of a mistake in its capital plan. Later today, the nba will announce what it is doing about Los Angeles Clippers owner Donald Sterling. Foray be suspended allegedly making racist remarks. We will hear from