1 00:00:04,160 --> 00:00:07,560 Speaker 1: Global business news twenty four hours a day at Bloomberg 2 00:00:07,600 --> 00:00:10,640 Speaker 1: dot com, the Radio plus mobile last and on your radio. 3 00:00:10,920 --> 00:00:15,080 Speaker 1: This is a Bloomberg Business Flash from Bloomberg World Headquarters. 4 00:00:15,080 --> 00:00:17,599 Speaker 1: I'm Katherine Cowdery and Bloomberg Taking Stock is brought to 5 00:00:17,600 --> 00:00:22,040 Speaker 1: you by the American Arbitration Association. Business disputes are inevitable, 6 00:00:22,160 --> 00:00:26,160 Speaker 1: resolved them faster with the American Arbitration Association, the global 7 00:00:26,280 --> 00:00:29,680 Speaker 1: leader in alternative dispute resolution for over eighty five years. 8 00:00:30,160 --> 00:00:33,040 Speaker 1: Learn more at a d R dot org. But it's 9 00:00:33,040 --> 00:00:35,200 Speaker 1: a downday on Wall Street. As a stock market kicks 10 00:00:35,200 --> 00:00:37,720 Speaker 1: off the fourth quarter. Utilities and real estate companies have 11 00:00:37,800 --> 00:00:41,760 Speaker 1: fallen amost and expansion and manufacturing is boosting speculation that 12 00:00:41,840 --> 00:00:44,840 Speaker 1: the Federal Reserve will raise interest rates this year. New 13 00:00:44,920 --> 00:00:48,680 Speaker 1: orders and productions swung into expansion territory last month, indicating 14 00:00:48,720 --> 00:00:53,360 Speaker 1: prospects are gradually improving across America's manufacturing landscape. At the 15 00:00:53,400 --> 00:00:57,000 Speaker 1: same time, factories continue to focus on becoming leaner by 16 00:00:57,000 --> 00:01:00,760 Speaker 1: trimming inventories and cutting employment, which check the markets every 17 00:01:00,760 --> 00:01:03,160 Speaker 1: fifteen minutes throughout the trading day. Down Bloomberg Radio down. 18 00:01:03,160 --> 00:01:05,840 Speaker 1: Industrial lverage is down fifty eight points a third of 19 00:01:05,840 --> 00:01:09,160 Speaker 1: a percent trading at eighteen thousand, two hundred fifty SMP 20 00:01:09,240 --> 00:01:11,600 Speaker 1: five founded down eight points four tens of a percent 21 00:01:11,640 --> 00:01:15,440 Speaker 1: trading at nine and the nastack is down seventeen points 22 00:01:15,440 --> 00:01:18,640 Speaker 1: a third of a percent, trading at fifty nine five less. 23 00:01:18,640 --> 00:01:21,520 Speaker 1: Texas Intermediate crude oil up sixty three cents of barrel 24 00:01:21,560 --> 00:01:24,680 Speaker 1: one point three percent at forty eighty six. About Goal 25 00:01:24,720 --> 00:01:27,600 Speaker 1: down three dollars thirty cents the answer at thirteen eighty 26 00:01:27,760 --> 00:01:30,080 Speaker 1: and that ten year treasury down seven thirty seconds with 27 00:01:30,120 --> 00:01:33,240 Speaker 1: the yield of one point sixty one eighty six. And 28 00:01:33,280 --> 00:01:39,480 Speaker 1: that's a Bloomberg business flash. You're listening to Taking Stock 29 00:01:39,680 --> 00:01:44,280 Speaker 1: with pin Box and Kathleen Mays on Bloomberg Radio, very 30 00:01:44,280 --> 00:01:47,400 Speaker 1: special show today in Cleveland. Are going to be interviewing 31 00:01:47,640 --> 00:01:50,640 Speaker 1: the President of the Federal Reserve Bank of Cleveland, Loretta Mester. 32 00:01:50,760 --> 00:01:53,160 Speaker 1: Ahead of that, we want to take a look at Cleveland, 33 00:01:53,160 --> 00:01:55,360 Speaker 1: the economy, where it's heading and what's driving and of 34 00:01:55,400 --> 00:01:59,320 Speaker 1: course sports talk about the Cleveland Cavaliers and more are 35 00:01:59,400 --> 00:02:02,920 Speaker 1: certainly the forefront of that. Now joining us is CEO 36 00:02:03,240 --> 00:02:06,840 Speaker 1: of the Cleveland Cavaliers. The Quicken Loans Arena Lynn Kolmarowski. 37 00:02:07,000 --> 00:02:10,400 Speaker 1: He's been with the Calves since two thousand three when 38 00:02:10,400 --> 00:02:14,040 Speaker 1: he joined as president. He is the man largely responsible 39 00:02:14,080 --> 00:02:17,359 Speaker 1: for bringing Lebron James to the Cavaliers. Lynn. Welcome to 40 00:02:17,360 --> 00:02:20,160 Speaker 1: the show today, Kathleen. Thank you great to be here 41 00:02:20,200 --> 00:02:23,640 Speaker 1: and uh and and thank you for coming to Cleveland. Well, 42 00:02:23,680 --> 00:02:26,760 Speaker 1: you know, uh, it's just uh, I think it's moving 43 00:02:26,880 --> 00:02:29,880 Speaker 1: and it's powerful when you see uh Lebron James of 44 00:02:29,919 --> 00:02:32,440 Speaker 1: course coming back to Cleveland and and finally helping get 45 00:02:32,480 --> 00:02:35,040 Speaker 1: this championship and now doing so much to try to 46 00:02:35,040 --> 00:02:38,480 Speaker 1: help Cleveland's growth forward. Just for starters, tell us the 47 00:02:38,520 --> 00:02:41,480 Speaker 1: story of you and Lebron James getting him to the Calves. Well, 48 00:02:41,520 --> 00:02:43,799 Speaker 1: I think, first of all, just to uh to put 49 00:02:43,840 --> 00:02:47,200 Speaker 1: that in proper perspective there, I mean, really credit is 50 00:02:47,280 --> 00:02:50,280 Speaker 1: due with our owner Dan Gilbert and Dan and his 51 00:02:50,400 --> 00:02:54,240 Speaker 1: partners Nate Forbes and Jeff Cohen, along with our general 52 00:02:54,280 --> 00:02:58,360 Speaker 1: manager David Griffin, um uh and and basically setting the 53 00:02:58,400 --> 00:03:03,800 Speaker 1: stage you know, were Lebron's ultimate return to Cleveland. Uh. 54 00:03:03,840 --> 00:03:08,040 Speaker 1: And really again just creating an environment and atmosphere that 55 00:03:09,120 --> 00:03:11,440 Speaker 1: made it attractive for Lebron to come back here. And 56 00:03:11,480 --> 00:03:16,200 Speaker 1: obviously being from northeast Ohio that only just added greatly 57 00:03:16,240 --> 00:03:18,880 Speaker 1: to that as well. But you know, as a as 58 00:03:18,880 --> 00:03:21,600 Speaker 1: a first step, there are are general manager David Griffin 59 00:03:21,639 --> 00:03:26,400 Speaker 1: had resigned Kyrie Irving, who is an amazing player in 60 00:03:26,440 --> 00:03:29,280 Speaker 1: his own right, who is a free agent prior to 61 00:03:29,360 --> 00:03:33,080 Speaker 1: Lebron making his decision to return. Uh. And then hence 62 00:03:33,080 --> 00:03:38,000 Speaker 1: from there, we all saw the essay from Lebron about uh, 63 00:03:38,160 --> 00:03:41,520 Speaker 1: this being bigger than basketball and and and uh and 64 00:03:41,560 --> 00:03:43,640 Speaker 1: it certainly has proven out to be that to be 65 00:03:43,720 --> 00:03:47,840 Speaker 1: the case. So how what has this meant so far? 66 00:03:47,920 --> 00:03:52,240 Speaker 1: It's still early days, but how does this NBA Championship, 67 00:03:52,320 --> 00:03:55,600 Speaker 1: the Calves beating the Golden State Warriors. Have you seen 68 00:03:55,600 --> 00:03:58,440 Speaker 1: the impact on the local oakal econmy How are are 69 00:03:58,520 --> 00:04:01,160 Speaker 1: you and your organization going to drive this forward to 70 00:04:01,200 --> 00:04:03,840 Speaker 1: make this broader impact? Well? I think, first of all, 71 00:04:03,920 --> 00:04:06,200 Speaker 1: with Dan, we have an owner who's just believed in 72 00:04:06,240 --> 00:04:09,800 Speaker 1: these great Midwestern cities such as Detroit and Cleveland, and 73 00:04:09,800 --> 00:04:12,600 Speaker 1: and certainly our organization and through Dan, Dan's invest over 74 00:04:12,640 --> 00:04:15,360 Speaker 1: a billion and a half dollars in downtown Cleveland alone 75 00:04:15,840 --> 00:04:18,599 Speaker 1: twelve different businesses here. So but not only between the 76 00:04:18,640 --> 00:04:21,560 Speaker 1: Calves and the Queue, but also with the Jack Jack 77 00:04:21,680 --> 00:04:24,840 Speaker 1: Cino Quick and Loans as a major presence here as 78 00:04:24,880 --> 00:04:27,839 Speaker 1: well our ticketing company access S Vertics. So in many 79 00:04:27,960 --> 00:04:31,440 Speaker 1: different ways manifested itself. But I think the best quick 80 00:04:31,480 --> 00:04:34,680 Speaker 1: story I could tell you here is that, uh in 81 00:04:34,880 --> 00:04:37,320 Speaker 1: two thousand twelve, I previously was the chairman of the 82 00:04:37,360 --> 00:04:41,000 Speaker 1: board of our Convention of Visitors Bureau, and we had 83 00:04:41,040 --> 00:04:45,480 Speaker 1: gone through a study about what clevelanders, you know, in 84 00:04:45,600 --> 00:04:48,599 Speaker 1: terms of recommending Cleveland as a place to visit or 85 00:04:48,880 --> 00:04:52,880 Speaker 1: to have a business conference, or travel leisure travel, and 86 00:04:52,880 --> 00:04:55,560 Speaker 1: it showed that only thirty four of people in the 87 00:04:55,560 --> 00:04:58,720 Speaker 1: Cleveland region would recommend their own city, which, to give 88 00:04:58,760 --> 00:05:02,159 Speaker 1: you some context, that's typically in the sixties and and 89 00:05:02,279 --> 00:05:04,400 Speaker 1: higher people who feel great about their city, and the 90 00:05:04,880 --> 00:05:06,719 Speaker 1: percent I'll sho are like the lowest of the top 91 00:05:06,760 --> 00:05:11,360 Speaker 1: fifty markets. After Lebron announced he was returning along with 92 00:05:11,960 --> 00:05:14,840 Speaker 1: the week. That same week we also had won the 93 00:05:15,320 --> 00:05:19,320 Speaker 1: honors for having the Republican National Convention here that spanned 94 00:05:19,400 --> 00:05:21,440 Speaker 1: three days between each other. You know, it was a 95 00:05:21,440 --> 00:05:23,480 Speaker 1: bit of a tipping point for our community in terms 96 00:05:23,480 --> 00:05:26,000 Speaker 1: of an attitudinal change and how we felt about the city. 97 00:05:26,040 --> 00:05:28,440 Speaker 1: Even though there's been a lot of straight strong in 98 00:05:28,560 --> 00:05:32,000 Speaker 1: the seas in terms of economically things moving forward, and 99 00:05:32,120 --> 00:05:35,919 Speaker 1: that we that survey again that it's the same type 100 00:05:35,920 --> 00:05:40,240 Speaker 1: of survey came out and of clevelanders felt that they 101 00:05:40,240 --> 00:05:44,839 Speaker 1: would recommend Cleveland as a place to visit a destination. Lastly, 102 00:05:45,080 --> 00:05:48,479 Speaker 1: just in the last several weeks, that same UH survey 103 00:05:48,600 --> 00:05:52,640 Speaker 1: was done and seventy five cent So think about that 104 00:05:52,720 --> 00:05:57,400 Speaker 1: swing percent to seventy amongst the lowest, amongst the highest 105 00:05:58,200 --> 00:06:01,320 Speaker 1: recommending Cleveland as a place to visit as a destination. 106 00:06:01,880 --> 00:06:05,720 Speaker 1: And the number one UH element that was the attributed 107 00:06:05,760 --> 00:06:09,039 Speaker 1: to this change and how people tell about our city 108 00:06:09,200 --> 00:06:12,440 Speaker 1: was the Calves winning the championship. So it's been a journey. 109 00:06:12,480 --> 00:06:14,760 Speaker 1: It's only four years. When you think about that, how 110 00:06:14,800 --> 00:06:18,640 Speaker 1: diametrically opposed that swing has been. But it's been an 111 00:06:18,680 --> 00:06:21,200 Speaker 1: amazing journey that I think in a lot of cases, 112 00:06:21,560 --> 00:06:24,000 Speaker 1: if you were to spell it all out and bring 113 00:06:24,000 --> 00:06:26,920 Speaker 1: it into a Hollywood producer, they would reject the script 114 00:06:26,920 --> 00:06:30,800 Speaker 1: as being too unrealistic. Uh huh, Well, broadly, how much 115 00:06:30,839 --> 00:06:33,680 Speaker 1: is sports contributing? We know that the Cleveland Browns are 116 00:06:33,720 --> 00:06:36,640 Speaker 1: starting their season on a on an off note. Uh, 117 00:06:36,800 --> 00:06:39,800 Speaker 1: but uh, seeing me to the Cleveland Browns. They're they're 118 00:06:39,839 --> 00:06:42,720 Speaker 1: the football right, I mean they're having a struggle and 119 00:06:42,760 --> 00:06:44,720 Speaker 1: they have for a while. But the Indians are in 120 00:06:44,760 --> 00:06:47,479 Speaker 1: the playoff against the Red Sox. I got a home 121 00:06:47,640 --> 00:06:51,640 Speaker 1: field advantage. Broadly speaking, how much are sports feeding into 122 00:06:51,640 --> 00:06:55,280 Speaker 1: the Cleveland economy? Well, it's huge, uh And I can 123 00:06:55,279 --> 00:06:58,719 Speaker 1: speak more specifically U in our world. And we actually 124 00:06:58,760 --> 00:07:03,000 Speaker 1: had an economic impact study that was done by CFL, 125 00:07:03,040 --> 00:07:05,080 Speaker 1: which is a bit of the gold standard in the industry. 126 00:07:05,120 --> 00:07:07,560 Speaker 1: But to give you an idea, So for the Cavalier's 127 00:07:07,560 --> 00:07:11,400 Speaker 1: playoff games, uh, it was estimated to be upwards of 128 00:07:12,160 --> 00:07:15,040 Speaker 1: UH three point six million per per game and over 129 00:07:15,120 --> 00:07:19,120 Speaker 1: five million per UH per finals game. But above and 130 00:07:19,160 --> 00:07:22,080 Speaker 1: beyond that, we have two events here at the queue 131 00:07:22,080 --> 00:07:26,560 Speaker 1: were the thirteenth most active building in the domestically per 132 00:07:26,600 --> 00:07:29,400 Speaker 1: poll Star, who measure climate event activity, and thirty third 133 00:07:29,440 --> 00:07:33,560 Speaker 1: most active building in the world. Glen Carroski please come back, hey, 134 00:07:33,600 --> 00:07:37,760 Speaker 1: maybe during a the next basketball championship game. He see 135 00:07:37,800 --> 00:07:40,440 Speaker 1: you know the Cleveland Cavaliers Quickamans Arena. I'm Kathleen Hayes 136 00:07:40,440 --> 00:07:48,520 Speaker 1: and this is Bloomberg taking Stock broadcasting live today. And 137 00:07:48,560 --> 00:07:51,800 Speaker 1: the Federal was a bank of Cleveland Our exclusive interview 138 00:07:51,840 --> 00:07:55,200 Speaker 1: with Cleveland FED President Loretta Mester coming up