Banning mr. Sterling for life for Many Association with the Clippers Organization for the nba. He is banned for life. This comes after those racist comments he allegedly made in a phone conversation. Were getting reaction from a former New York Knicks are start. From the conference in los angeles come we will be joined by the former italian Prime Minister. All that is coming up in todays edition. The stocks were watching as we head into the close, julie hyman is keeping an eye on them for us. Christ lets take a look at technology. That is the leading group today. Yahoo is among the best performance in tech today. The companys socalled some of the evaluation, that is, if you a look at ali baba stake and yahoo japan, it is worth more than where it is training now trading now. Yahoo also said it would be debuting a couple of original video shows on its website to drive scribers and traffic. That could also be giving a boost. Out with this numbers and showed better than expected and lost fewer subscribers than estimated. Shares have been doing quite well. Downside today, the company also reporting its numbers, north american down 21 . They have been struggling in its handbag business and is trying become an out and lifestyle brand. That has not yet caught hold. Shares are down sharply. Barclays isor, saying it is planning to create a bad bank of legacy businesses overseen by one of its coheads of corporate and Investment Bank. According to al person familiar with the matter. Shares straight over in the u. K. , they also trade in the u. S. Theyre taking a little bit of a leg up higher. Thank you. Time for the big story. Twitter is reporting Quarterly Earnings after the bell. Twitters will report an adjusted loss of 3 10 per share. What everybody is really watching is user growth and engagement. Twitter had 240 million monthly active users. It has not budged month much. Stock is up 36 since the a Public Disclosure of company back in february in part because of a slowdown in new members and in part because people have been growing weary of tech. Assuretter ceo tried to shareholders, including his most recent redesigning of user profiles. Enough . Joining me now to describe what should be done and what we wiser,be watching, brian Pivotal Research group analyst, and cory johnson. I will start with you. Are enough people engaging and using twitter enough that the company can really point to growth . That is the hard part. Theyre expected 252 million. We do not know if they will actually hit that number or they have done so many things to make twitter a more engaging platform not just for people in tech and social media, but everyone else. Making it more and more like faced. The big profile update, if you put it sidebyside, they start to look similar. It is image centric. They tried to push down some of sometwitter taxonomy people do not get confused, and they go in and say, this is something for me to use. Like a lot of people feel there is so much information on twitter out there that it is hard to navigate and at some point theyre getting hit were bombarded by this. Our users growing weary of this . They talked about one of their goals was teaching people how to use twitter. Numbersslower using reflect this is not for everyone and they do not have the same kinds of numbers of other sites, not least of which facebook. Numbers and we might pretend like that is Something Different than. Com, but it really is not. To me, that is the number above all. That is the number i will look at most. It is worth noting the analyst if the custom if the Company Meets the analyst estimates, it is showing seasonality and not blowing through sequential growth rate, but theyre actually looking like an older business. That is worth noting. , barely in business the public four year, we are already thinking of this as old tech. Hang onto that thought because i want to bring brian into the conversation. You know, brian, talk to me about some of the things theyre trying to do to get the company more on speed and more popular with users and create more members. Sure. I do not know if theres anything he can do. A niche, and and there is nothing wrong with that. It is nice having a big niche. I want to move on to the point on users, the new clicks. It is a perfect analogy. They have wrongly been focused on users because the reality is they are bigger and different enough to be a real business. It is worth knowing the yeartoyear growth rates, which i would argue would be the more perfect way to look at this, are still really good. More than doubling yearoveryear. You say more than doubling. Real . Allose users these boxes online, lance is shaking his head no. Youre not buying it . Not always. Unfortunately, there is a tremendous amount on their, but one thing i want to point out is this is more than a niche product. If one of the best features is delivering the news, how many of us are interested in the news. We are sharing realtime information. That is where i think it comes in handy. I know i can look to my twitter feed and when there is something really big, twitter will capture it. The problem is, when you look at your twitter feed on a sunday morning a people are tweeting out any and they find, there is not necessarily a rhyme or reason. Isnt that one of the things they would like to correct . Not everybody wants to. We are unfortunately not represented. To their point, brians point about an annual basis versus a sequential basis, it is helpful to the to do both. For growth businesses, it can be there isto know a point that it does not matter and you show back yearoveryear. That is how i do it. I think to the point of the fake account, they matter when revenue per click the clients. On twitter per user has actually had a significant increase. To me, that shows the efficacy. You are absolutely right. It is critical and it gives us something to gauge whether or not it is real. The revenue for advertisers. Users do not spend money and advertisers do. What is the average ticket price per advertiser. That is the most important thing and we do not get it unfortunately. They are transforming the business. The problem with twitter has been the average person was using twitter without paying for it, using it as a platform to connect with deaf people with that. Twitter has been transforming that service by monetizing. Gets back to what cory is saying. You need users who will go on those as. A lot people feel like they are just being spammed with information. Those of us in the media business, we love these kinds of news feeds, but i do not know if everybody else in america or the world is like that. Last word. Class i think twitter understands better than any that content on their platform that can be advertising that is useful to their videos works. Power of twitter. We watch those numbers carefully. Thank you. Not go anywhere. You will join me to break down those earnings. Next up, Buffalo Wild Wings had a great First Quarter. It feels good about the rest of the year as well. Plus, legendary sports agent Leigh Steinberg on the latest racist comments allegedly made by don sterling. Banned for life. All of that ahead. A lot of companies are blaming the weather for their earnings but not Buffalo Wild Wings. Earlier andhe ceo asked her why the company was so successful in the last quarter. She was positive and optimistic on the future. Take a look. A lot of things aligned. Certainly our strong samestore sales. We were held by the winter olympics. The number of games went into overtime and we were able to have our overtime. Overtime commercial shown a number of times. Poultry prices certainly helped you out, given you are selling so many wings. Definitely helped this year. 2013, 1 of the highest wing prices we have seen. Little bit more in the normal range of what we would see. What do you anticipate Going Forward . We put into our forecasts slight increases. They typically dip in the summer and then start climbing again in the fall. The pressure on beef and pork and people moving to chicken will provide a great supply for us. Pretty moderate. Let me ask you about the weather. So Many Companies have come out pooraid our results are results and are the results of poor weather. You have good results. Do you think they could have been better had the weather been better . It is really hard for us to tell if we have been in cap impacted by the weather. It depends on the day of the week and what sporting event is on. Guests are pretty determined to get out and watch their Favorite Team play despite the weather. Guests figure out a way to get into Buffalo Wild Wings. Why are you optimistic right now . Our First Quarter is up to a great start. If you take results from the First Quarter and even putting in moderate results, maybe samestore sales moderating a maybe a slight climb in chicken wings, we can get to that 25 yearoveryear earnings growth. How you get there is always a little different but we feel pretty comfortable on our ability to manage the business for the remainder of the year. Upcoming sporting events, are they part of what you model in . Class the nhl playoffs certainly helped in the last couple of weeks. Overtime games there. This year, in june, and of the Second Quarter, we will have the world cup of brazil. That should drive guests in as compared to prior year. Speaking of brazil, tell me about your international plans. What company what countries have you seen succeed . Class we think eventually Buffalo Wild Wings works around the globe. We currently have have three locations in mexico, which opened in the last six months. Great results. 14 locations in canada and we to open and buy in saudi arabia. The philippines probably toward the end of the year, 2015. Other companies we are working thinkn agreement, we there is a huge amount of opportunity. We think we can have somewhere around four locations. What is your favorite kind of sauce on your wings . Depends on what im eating. Myy garlic is probably favorite. That was the Buffalo Wild Wings cl. Coming up, we will head back to the conference and speak to the chief Investment Officer of one of the Worlds Largest funds. Is on a patenta buying spree ahead of its ipo. We will look at why this sets the Company Apart from google, facebook, and twitter. Should you buy . Alibaba is beefing up its u. S. Patent holdings before it goes public. A lot at stake here. Ipo may be megan hughes has more on this. Megan, talk to me about the patent strategy. What is it . As a defensives move. A Company Announces it is going Public Entity it becomes vulnerable to competitors and has a target on its back for litigation. All the patents ali baba is looking to acquire can act as a defensive shield. So far, the company has gotten 102 patents, including 20 purchases from ibm just last year. Applications on 300 others pending. All of these have something to do with ecommerce. Payment processing. Yahoo owns a 24 stake in ali baba antidotes and it holds 1500 dollars and patents. That is at least one potential predator that is at the table. It seems to be part of the companystrategy. What is it worth for them . Why are they doing this and why are other Big Tech Companies doing this . Did not do companies this. The twitter ipo before it filed, it had only nine patents and 48 hours before it went public, it had a dispute with ibm. Public, a few months later, it ended up buying 900 patents from ibm. A very similar story with facebook. It got into a fight with its ipo with yahoo and ended up buying to settles from ibm that dispute in two months after going public. Google, same thing. It also got into a battle with yahoo . Further down the line, it bought 1000 patents from ibm. Notice all the roads lead back to ibm, one of the biggest patent holders. It is looking to make a preemptive strike in beefing up its patent war chest. Thank you. Leslie is with me. Megan, stick around. Why are they buying this . Interesting for these companies, they are doing ipos because they are untested companies. Their untested, management is untested, so the patents are a way for them to tell investors they have intangible assets valued as such. This is an issue with twitter six months ago. They had a disagreement that they could own their own patents. It was not property of twitter but of the inventors. Inventors left in the patents left with the inventors theoretically. This opens them up to lawsuits from other Tech Companies and makes them vulnerable to igation, were not going to make that mistake, we have seen the mistakes other companies have made. But it takes money. Why would twitter not have done this first . There is was an open source policy where inventors could feel they could own the thing theyre feeling. It was a way to attract engineers and get them to be a part of this culture. It seems it could be upwards of 160 billion overall, which would make it not quite facebook, but if they move forward, it could be a larger price we could see this thing up or 1 billion. Adjusting for inflation. In 2008. Illion sale this thing could be massive. The thing it has going for it is it has profit. That makes it easier for investors to value it. Has a positive cash flow, whereas twitter did not appear the patents are very important for that type of company for investors to value assets. Class we will watch it carefully. Thank you very much. Leslie and megan hughes, thank you for bringing us the story out of d. C. Coming up, after the break, street smarts first interview from the conference, the chief Investment Officer of one of the world houses largest funds will join us on the show when we return. Later on, youre looking at the recently updated clippers website. The club clearly trying to convey a new message here. Will fans show up to support tonights game . Details are next. I am trish regan. The milken global conference preys together some of the world houses most and for jewel business makers influential business makers. To transform these ideas into action. Joining me from los angeles are the hosts of market makers, joining a very special guest. Thank you. Influence, great ideas. From chris, both the chief Investment Officer of the california state teachers retirement system, 180 3 billion dollars under management. He is an outspoken individual and we love having him. Great to see you. Class good to see you. Welcome to california. You are a busy guy. Why panelist. You are moderating panels. Panel some spies into the you did an hour ago and its only you may strongly worded remarks about the diversity on facebook. Tell us more. Lets be clear. The panel was hosted by a bloomberg editor and bloomberg businessweek. Available on the ipad. The panel was on women and business. We are we were physical wentcal one facebook public. It is nuts. Comments out press bloomberg covered first. Markit shame to Mark Zuckerberg into at least adding one woman on board. We just one, give me a break. We will keep pushing on them. Christ do you have a dialogue with facebook and Mark Zuckerberg or anyone else . They are in the quiet time. No way for us as a shareholder to approach them or have comments. You approach companies in a nonactivist way. What do you think about the effectiveness we are seeing . Class i will host a panel on what is activists. We have invested with some of the activist managers, not the piece of not those you report or talk about, because we like to do it in a more less aggressive. We like to engage. We think it is more effective. What do you do when you own a big bold activist investor like bill ackerman comes out swinging . What we try to do, and there are pros and cons, capitalism is not a passive activity and not a noncontact sport. We want to be supportive of longterm shareholder value. As part of the concern with ackerman and icon. Are they out for short term gain . We want to see it perform over the long term. We are finding companies are not well run. It is not this or that up to speed on it. Withld say, when we meet management, they often say they know what to do to make the Company Better but will not do it because it hurts Quarterly Earnings. At this point, the company is in play and there is no doubt. , bills the best outcome ackerman and them working together order that we there talking about coming in as a white knight . Classes any Public Companies what is interesting is we are so big, leone four companies. We find one plus one is not two. It adds up to something less than two. If we own the surviving company in the longterm, and Financial Services and technology, mergers have not shown to add value. We would rather see the board be independent of management and entertain and make a decision when management is looking at it. Is that not a utopian board . It sure seems like, whether i say Old Boys Club because it is phenomenally man or not, the copy of likeminded guys, are we expecting too much of the people who actually sit on the boards . Theyre doing it for the most part a part time tiered i do not think they should be fulltime jobs. Directors needte to be better. You know, ceos are handpicking their boards in america. One of the things to look at in the u. K. , just now, every board in the ftse 100 is now having at least 200 women on board. Seniort there enough women across businesses to put on these boards . Quest that is what they would claim. That they want ceos on the board. There are not enough women ceos. Our point is you have got to reach down and push through your comfort zone. Management in the u. S. Is not willing to reach out of the box and 82. And they need to. You may have seen a couple of weeks ago, Peter Weinberger wrote an oped in which they called on Institutional Investors to be more vocal so the debate over what happens to companies is not dominated by a few guys with bullhorns. I totally agree. Why not get louder . Were doing the best we can. We have a staff of 10 devoted to governments. They are about the only sons, florida has two people, new york, and only has a couple of people. It is the rest of the funds in the middle of the company that need to actually care. They want to own the stocks in 30 or 40 years and a need to be more active. Are you talking to them about that . You must know about this. I do. The council of Institutional Investors in the u. S. Is trying to do it. International Corporate Governance are getting people together and educating and encouraging them. Blackrock gets this. We need large owners to start putting effort forward. Lets talk about and go. They receive much criticism in the last couple of months. What do you take with all this noise . Everyone wants to live in newport beach. Money management firms really struggle. Do you invest with pimco . We do not. Were one of the few that does not. We invest with their competition, western met western asset management. The fixed income universe is very small and there are a lot of concentrated management. It was interesting to look in there. Bill is quite a start. A star and on tv a lot. We have had good discussions before but even as a climate wanted to it a client wanting to invest in a firm like that, it is hard to see what is going on. We appreciate your candor and insights. At thenvestment officer california state teachers retirement system, another multibillion dollar guy. We need to wish his daughter happy graduation tomorrow. Excellent. Wonderful. You have such good stuff. Next up, i will have the players perspective on the Donald Sterling company. Ton bender will be here discuss what it takes on off the court controversy. We also have lee steinberg. Following a press conference this afternoon, it was announced that Donald Sterling is banned for life from the nba. With sterling now banned, the Clippers Front Office is left to pick up the pieces and address tensions with sponsors. What about the players . They are tasked with winning to themes thanks sterling controversy. To gain more perspective on the mindset of a player, i am joined now from houston from a former indiana pacer and New York Knicks player. Here with me in new york, the bloomberg Sports Reporter and on the phone, a legend in the sports world, agent Leigh Steinberg, who has negotiated over to Million Dollars of sports contracts. Welcome to all of you. I want to understand the basic fear. This is a guy now who banned for life. Does that mean he will have to sell the team . What will the logistics look like . It means the specter of Donald Sterling and his era is over. While ownership will go probably to his wife, the commissioner was very emphatic that they were going to push the other owners to vote to reject him and invoke the franchise. They need a threequarter vote to do it and are already pushing for that. All duelly and with haste, to pop this balloon, because racism is posing an x a special threat to every single revenue stream. Presley saw that. Sponsor after sponsor was pulling out. Revoke the charter . What happens to the actual team . Does it then it wouldp for auction . Be sold . Yes. The league would sell. 75 hat case, if we get that from owners, thatll be the course of action that happened. Theoretically, it would go to discount. I do not think so. It would probably be the most valuable nba franchise up until recently. The bus when they sold a few months ago, for 550 million, stands toa record, it reason the clippers, who do not own their building a do not have broadcast rights, would demand a lot more given they are in l. A. I cannot imagine what it must be like to be a player on this team right now. We saw them go out and play the other night and they enjoy these inside out and wore black socks. A kind ofnt to be protest spirit you played basketball and had to deal with a lot of controversy but nothing like this. Thedo you keep your head in game and stay professional when you are working for a guy that allegedly is saying stuff like this. At first, i think it is very tough. Considering the path, and this happened way back when, and knowing that is still alive today, especially on your team and the team youre playing for, it is very difficult mentally to break through. It is difficult to go in with a winning attitude when you know you are actually waiting for this type of person. I would say it would be a tough stroke. It is difficult. I imagine a lot of players are feeling much better after seeing what adam silver had to say today and seeing this banned for life on mr. Sterling. We will continue the conversation. Do not go anywhere. We will be right back with more and we will be discussing exactly what the economic fallout will be following his lifetime ban. He did not wait to hear from the commissioner before cutting ties. We will talk about those next. Individuals from all walks of business have condemned the comments made by the cliffords owner. From magiceryone johnson to president obama to bob either. Here is what Jon Erlichman was told about the issue. I was frankly appalled. We live 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 figure or not, whether in a business or the public sector. There is just no room for it. Still with me, the bloomberg Sports Writer and sports agent my 40 year career making deals and change in the game. Jonathan, we were talking earlier about how difficult it is to be a player out there on the court. How do you think players are feeling right now and what do you think of those in the Ball Community about their reaction to mr. Silvers van ban of the cliffords owner . They appreciate the quick course of action she took. Up and setly stood an example. Indefinitely, i think the players really appreciated that. I think they believe mr. Silver back and i am seeing nothing but positive feedback and nothing but appreciation at this point. They feel it the league is behind them. Is this a defining moment for adam silver . A newly appointed commissioner than following a of david stern and plopped into your laugh is the most horrible threat to basketball imaginable. The specter of racism for which there is zero tolerance and the major out cry that occurred. The timeframe saturday night and tuesday afternoon, a mixed reaction in your view . It was swift and dynamic. There was no waffling about it. You are banned for life. We will force you to sell the team. A half find you two and Million Dollars. The healing can begin. A pinprick that knocks the air out of the balloon. I represented athletes now for 40 years including basketball players. They will feel a real sense of relief and they have the i do nottune out think they did sunday night, but to tune out all sorts of noise and distraction and a quiet mind and focus. If they do not have that ability, they would not have made it to this level. These guys are clearly real pros. It is uplifting for them to see adam silver and the nba has their back when it comes down to it. Otherwise, it is tough to get out there and play on the court every night. A defining moment for mr. Silver. Thank you. Wonderful to have you here. We are back with more after this. I am trish regan. Three minutes and 46 seconds until that bell. Here is your top 10. Number 10 is target. The second u. S. Largest retailer chiefced the new Information Officer on may 5. The theft of millions of card users personal information, we will have more on that story in todays lineup. Class number nine is nine percent, luxury handbag makers, to use the term luxury lightly. Tanked by 21 . The Company Faces increasing competition in the handbag notets from rivals, also labels i would consider luxury. Call coach luxury . Class a lot of people would. Youre from ohio and you should know. It is big in ohio. Luxury in ohio. Class from all of the Outlet Stores around the country. Class number eight is deutsche bank. The Investment Bank recorded profits that fell less than estimated. 14 other banks have been cut to negative and the that did not derail shares. Class breaking news in the last hour. There is set to be offering out lets. Earlier today, mark posted firstquarter profits that beat estimates. This is the company cut spending on research, continuing to spend more than a Million Dollars an ounce last year. Class number six is herbalife. Earnings beat analyst estimates. It also announced it will suspend its dividend to free up cash for stock ive back. The company has been under heavy scrutiny after numerous complaints said the business was a pyramid scheme. Isss number five, netflix up. There would be an improvement in quality and reliability for video streaming customers. This is the second deal in two months for improved Network Access by netflix after paying conflict comcast in february. No financial terms have been disclosed the but i say a man because you get tired of house of cards having blitz while you are watching. Class you have been complaining for a while. Yes it does and out will not anymore, hopefully. Number four is nokia. It has announced the networking chief will become the new ceo effective may 3 after selling off its unit in a 7. 5 billion deal to microsoft. The Company Relies heavily on revenue from its network technology. Class speaking of incredibly slow connections, go go is vomiting by nearly 30 . At t announced it will introduce four g wireless Internet Access to commercial flights, providing tough competition for airplay airplane wifi provider go go. The rollout is as soon as 2015 but maybe they will finally be able to watch netflix on the plane. Class that would be so great. You cannot do it with go go because they are too slow slow. , unlike some of the other phone companies that reported limit losses by matching rival offers and having new offers, such as a family plan. All right, we are getting to our number one stock of the day. It is apple. Gains torom slight slight losses. They are looking at a 30 billion increase in shareholder offeringand the debt will be set at 12 billion, and the notes may sell as soon as today. They are ending the day higher. Of course, we are waiting on some key earnings reports, twitter coming out after the bell, but internet shares sort of halting the fourday slide that we have seen, the nasdaq off the highs of the session, ending up about half of one percent. Julie is looking at it for us. You are doing a pretty good job. Thank you, thank you. Yahoo i mentioned earlier, doing well this session, and we are waiting for ebay. Financials up the most. Not know howdo much suspense there is, but there is a Federal Reserve meeting going on that will conclude tomorrow, and it is likely we will see another 10 billion reduction in the bond buying, and that is also playing into things. Roundupll go to the while we wait for the twitter actually, we will not wait. As we wait for those twitter earnings to cross, i am joined sam, a media ceo and founder, and our bloomberg west editor at large, cory johnson. Sam, what are you watching . Twitter, are they going to regain momentum since there announcement their announcement . Everyone is looking at those maus, the monthly active users. The stock. Unished it went from 70 to 40. 232 million users, and then they grew to 241 million users, and that is slow growth, 218 million back in june. It does not look like they are doing this quickly. Wait a minute. There are the numbers. Theylling it on the nose, underestimated the numbers. Twitter is still showing sequential growth. The analysts were predicting there would not be sequential growth, and there was. Looking at the numbers, which are just crossing, they are saying the adjusted net profitability is barely profitable. Looking at what the adjustments noncashre are so many charges that i think it can be appropriate. I do not know that that is the case, but i will look at the details after these cross. Sam ointment out, pointed out, that is really important for this company. There is still an increase sequentially. Six percent . 260he number to beat was million. The active users, and, obviously, there is a big shift to mobile. 260 monthly active users 260 million. 255 million. You said the number was 260 million. It seems like anemic growth. Looking for some growth. Cory. Ad, the thing that we saw going into the ipo, i was personally surprised after the ipo about the number of users slow down and slowed down and slowed down downowed down and slowed and slowed down. 6 , it is picking back up to. Out, they pointing were hoping for more. I think this is a good thing. Ok, lets see how the stock is doing right now. Lets get back to sam and the stock right now. It looks like it is down 6. 75 , and there has been a big selloff in a lot of the big tech names. Twitter of all of them is. T a postipo low it is not trading at an alltime high. It is trading at a low. Wow. What is the problem with this. Why are we not seeing more . It is not the Easiest Service to figure out for a lot of people. I would agree with that. The hope was before the ipo that they were going to have more users, and it looks like we are topping out at right around 300 million. The other thing i like about twitter a lot, and i am very active on twitter, it is a very different experience than instagram and facebook, and to your point, maybe not as userfriendly. Thekind of have to be in know and be an active twitter user. Going back to the initial problem with the ipo, that there was not really a deep understanding of it, or that it was not what people meant it out to be. Maybe it is a good business, a sustainable business, but it is not a facebook, not the same thing, and people bought into it initially, wanting a piece of that magic. It did not matter exactly what it did. Exactly it is becoming what it is, it grows. It really feels like a niche service. Would ask what i also. Is this a company that went public too fast . When you think about facebook, it took a while before it accessed the public market. They almost seemed to rush to the market so quickly. Should they have waited . They are different companies. Both Companies Went to the Public Markets with their growth rate slowing quite a bit, but understand that when Tech Companies went public 10 years ago or well before that, they went at the very early stages. It was small offering. You would have tech focused firms bringing small Tech Companies that thought they could become the next apple. Indeed, apple was a very small offering, in comparison. What we see now is we have these big banks, morgan stanley, goldman sachs, etc. , bringing much more mature companies, where they see slowing growth rates, and that is the time of the offering. There were the Companies Like google, admittedly, seven years ago, or facebook in the last year or so, and we saw those companies go public and reaccelerate their growth, but we might expect the kinds of ipos we have seen, they are of a different stripe. Them best days are behind as far as growth. Their best growth days are behind them. Where does that leave the valuation . Investors invest in ipos because they want the companies to take risks. They do not want stable, predictable companies, and compared to facebook, you may disagree with the instagram and the whatsapp and the oculus, but they are acting like a start up. All right. Sam, thank you very much for joining us. Cory johnson, we have ebay earnings coming out, so we will be talking about that with you next and look at Cyber Security protocols after that massive hack attacks. These that, and mastercard. And in a land far, far away, disney is going to its new Motion Picture for star wars. A whole new galaxy. More street smart when we come back. And says leah princess. 250 5 million monthly users not enough, twitter down, 255 million users. This was back in november, the number there, and they are not illionppy about the 255 m monthly users, and there are the stories we are tracking, and we have the host of one of our shows. Target, we mentioned this in the top 10. They are putting their massive data breach behind it. The chief Information Officer starts the job next week. He advises government agencies, like the department of Homeland Security, the department of justice, the secretary of adense, and then these the more secure debit and credit cards they are expecting next year. We have talked about these, with chip that is embedded, and they will put different payment machines in place six months earlier than it had planned, so the irony of all of this issue may be safer going to a target than other retailers after they install all of this new technology. We are finally catching up to canada. Canada has already been doing this. And europe. It has cost these guys 61 billion 61 million of outofpocket cash. The millions of accounts that were affected by it. Big dollars. And then this guy, he used to be at first data, home depot. G. M. Got him, and, of course, they are going to end up saying a lot more than 61 million. You go toe of names when you screw something up massively and you need a celebrity name to fix it. Cracks you are right. He has been at American Airlines and has been on a board. Is a superstar. A National Cash register. The Homeland Security aspect is interesting also. Care. They really care about safety and data defense. All right, 2013 was a good year ceo, rising ton 49 million last year, including 29 million in Stock Options. His compensation exceed several of his peers, including Mark Zuckerberg at facebook. Zuckerbergs total compensation in 2013 was more than 650 thousand dollars. Of course, he is one of the witches to richest sort of between of tweens. Hey have been rewarded we have got ebay earnings that are just crossing. Indeed, the earnings rising more than estimated. Coming in at . 70, and that is three cents above estimates, and sales also beat. Thecally the midpoint of range is right around where lysts were estimate estimating it. That profits up in the First Quarter. As we talked a lot about, paypal really is the cash cow of the business, and these good results, the backdrop is the carl icahn push to have the Company Separate itself, but also, he has been in negotiations to get some of his board ofatives on the ebay, so that is sort of the background of this. The results look strong versus what folks were looking for. They really have become an Infrastructure Company for not only retailers but for Small Businesses. A are starting to compete against the amazons of the world backdoorof Offering Services to retailers and all of the Small Businesses that are out there. One small caveat, it looks like the Second Quarter forecast for earnings is a little bit shy of estimates, and that might be responsible for the little bit of decline that we are seeing in the stock there. They have revised their fullyear eps estimates. Paypal . Total up 27 . It has been fascinating. This is where all of the growth in the company has been taking place. Absolutely. What do you think about carl icahns push . On yourho have come show have said that paypal could still be separated and still grow and thrive and still Work Together with ebay. There is no reason that they have to be in the same Corporate Structure to Work Together. It is a lot stronger, and i think carl icahn is exactly right. That is when you make money from other business services. I think it is a really smart move. Paypal is a mobile payment system. They could really rival the best of the mobile Payment Systems. Without question. I think it has been the leader for a long, long time. He made, the points and it is an interesting one, it is tough right now to recruit the top talent at ebay because people want to go where they are seeing lots of growth, and they are seeing lots of momentum in the stock price, and the stock has had some challenges over the course of the last year. Cory johnson joining us, as well, for more respective, and i was just saying, as you try to recruit the top talent, you are doing that in large part with Stock Options in the valley, and it has been a rather challenging year for ebay. Ebay, when you look at uc two things. There is this Commerce Business ,hat is still doing wonderfully and you see them being rebranded as paypal buildings. You see people coming out of school with great computer computing skills of a looking them. You see that business growing fast. Is not a recent trend. Ebay versus amazon is a good way to look at the future of retail. Walmart. Iness versus it is the same kind of battle. For a lot ofl businesses to take their stuff online. Maybe you do a little bit of both. Alibaba has these. Model isibaba appropriate. They take on loads of inventory to sell it. Mostly,does not do that and ebay does not do that. When you look at an ebay, you see that company approaching this problem with commerce in a very different way. They have got a pile of big data. We were talking about them keeping it away from them. Now that it has grown up, it is probably one of the most powerful Payment Systems online. Yes, incredible. Thank you so much, jeff, always wonderful to see you, and, of course, cory johnson. Coming up, Marissa Mayer striking a deal. They will be streaming music concerts on yahoo every day. We will have the details and live from the milken conference later. And we will be talking to a Prime Minister in an interview you do not want to miss. More street smart next. Wechsler this is street smart. I am trish regan. You can watch live from the comfort of your own living room right on your couch. Yahoo is teaming up to launch a new channel that will feature one live show per day, a live stream on yahoo . Our senior west coast correspondent Jon Erlichman joins us from the milken conference. A big effort to try to turn yahoo around. Special about a live stream concert channel . Why is she doing this . Anwell, i think there is opportunity. And, by the way, if they do a the twoper day, maybe of us can get a concert, a forum for that. I do not know. Well, that is a lot of content to fill, but i think we know the story. Companies like yahoo , aol, hulu. They are trying to steal advertising away from Traditional Television. I think the live concert part of it is an interesting one, in that you are really seeing brands interested in being part of live concert experiences. Brands these days want to be part of the experience. They care less about taglines and 32nd spots. They want to be integrated into the experience. On certs are the great way to do that. Through live nation, presumably more will be coming. Nation, on some levels, this is a nobrainer, because they can line up a lot of money, but i think the biggest question is do people really want to sit on their couch and watch these live concerts, and i would say it is not clear. It has never been clear in Traditional Television that that is the case, and it is still not clear now. It is interesting. She has tried a lot of different stuff here. What is the analyst unity saying in terms of what might stick . I think there is always been this question is yahoo is a Technology Company or a media company, and when you have this this week, maybe they are trying to be more of a media company. All right, Jon Erlichman, thank you very much. We are going to be back with more street smart, including an interview with mario monti. That is next. Ok, we are watching twitter in the after hours, and they dipped below the low, which was an intraday low hit back in november, investors reacting to the lack of user growth. Million members on twitter right now, not really enough to impress the community, down more than nine percent. And we are watching ebay, which just came out with earnings. You can see they are down about three percent now in the after hours, so ebay losing a little bit of ground there. At the milken conference, the global conference, it is a four day event, and their goal is to ideas to work in the marketplace. Joining me now from los angeles is erik schatzker, who is joined by none other than mario monti. Trish, good to see you once again. And theith mario monti former Prime Minister of italy. Mr. Mario monti, a pleasure to see you again. I was struggling with what to began talking to about, and i think russia is the best place. How much resolve is there in europe to deal with than Vladimir Putin on ukraine . There is resolve. Degreesto different because of objective the oilces, including and gas imports from russia. This is not the first policy tension. I detect a much stronger to try to cope with this with more coordination. How far is europe willing to go . In the immediate, it is a and howf the sanctions it will be measured in terms of the economic sacrifices for europe, but i think this ukraine has a much broader and is thatessage, which europe is no longer in a comfortable state of mind that it is living in a secure place, and this, i believe after the european elections to be held at the end of may will be a powerful accelerator of the countries willing to put their act together. Is that to say that the question of how to respond in ukraine will be an important issue in those elections . It will be an important issue in those elections, which are, nonetheless, dominated by others. Taking a bit of distance. The european nation has always developed as a response to crisis. It is also a response to world now, i that crisis, and see the European Union in the year to come dominated by the need to respond to two crisis. Inner, and that is what is created between the Public Opinion of europe and the european institutions, and the second one is this issue of a more and more russia, andr it is very good. This has been debated at length in europe. The response to those countries has been too slow. Seeing how russia behaves now, they may think differently. At what point do you begin to worry about the deflationary impact of a weakening euro . I am not too worried about because we have seen in the whole field of central and also macroeconomic policy in europe so that people are becoming more flexible. There is the adherence to the withmental principles fiscal discipline, stable butency, structural reform, should there be really a deflation, a danger in europe, i think the instruments will be also for thet and political authorities of europe to become for a while a little less reliant on their policies. Instruments as far as the ecb is concerned might be quantitative easing. Should mario draghi be pursuing quantitative easing, and if so, how aggressively . He knows, he knows. Draghi has shown a very practicality, and i have no doubt that mario draghi is a European Central banker but also works with the american culture. Should he be doing it now . Probably not yet. And why not . The risk reward balance is not quite right yet . Yes. Do you worry about the formation of a credit bubble in europe . Look at the yield at the spanish bonds. What do they say to you . It is true that they have , anddown considerably there was reason for concern and but i do not see elements for a specific worry and i think this creates flows from the economies to the periphery of the euro. There is also the fact that the periphery of the euro has done a lot of things. We are proud that italy is the only country in Southern Europe that has gone out of the socalled procedure, that has managed its Public Finance without a program and without a troika. Mario monti, always a pressure, the former Prime Minister of italy. Back to you. And a special thanks to former Prime Minister mario monti. And we have some breaking news. This has to do with the General Electric situation. They unanimously have accepted the General Electric bid for the power plant assets. Is said that approval to be nonexclusive. In other words, that does leave open a bid from siemens, which is said to be possibly making an offer as well. Ge,e are discussions with and, remember, General Electric made about a 13 billion bid for the assets. A trainey operate manufacturer that makes the highspeed trains which are quite famous in europe, but this would be separate from that. Still, the situation is still up in the air with that potential siemens bid. Y went to have access to they want to have access to alstoms books. Jump off the top of Mount Everest, the danger of climbing everest, next with him, on street smart. Time for when we bring you popculture. One net had a next effort to jump off Mount Everest for the Discovery Channel in may. However, leading up to his jump, tragedy struck, when an avalanche killed 13 sure buzz sherpas, and they will have a new documentary about the tragedy this sunday. He joins me now. Take me through this Comedy Series of events that you went through when you found out about this tragedy. Did it immediately lead to the cancellation of what youre going to do . Not immediately. I heard it and i saw it. I opened my tent and saw it coming down the mountain. I saw it hit everybody that was up there. It was about 6 45 in the morning, and i was one of the few people who saw the whole thing. Oh, my gosh. You heard an avalanche before, given that you have been climbing for much of your adult life. What did you think . Did you think, this is going to be really bad . I did not think it was going to be that bad. Every day, there are avalanches, so you get used to hearing it creaked and crack, but i knew this one was bad. I just did not know how bad this one was. That this isn idea kind of a luxurious thing, where people who have a lot of money go and climb everest, and they these sherpas that are trying to help them up the mountain. The people going up and down like this clearly, these 13 people died, and they are risking their lives on a daily basis. It is quite a bit different. Pas are kind of the rich guys, so they are not being taken advantage of at all, and those that i have worked with in 15 years of expeditions, they are quite passionate about what they do, and they take a lot of pride in what they do. There is a Younger Generation growing up now, and they do see there is a lot more money and a lot more things happening there than there was back in the 1990s, and they want their share of that. This tragedy is obviously shedding some light on that, and hopefully they will get what they want from the government, which is a bigger share of the revenue that the government actually takes in. Scheduled toe all climb up and jump off, and that was obviously brought to a halt, given the sensitivity surrounding this now. Disappointed . But of course. Of course. I am hugely disappointed, but the right thing for us to do was to focus on the sherpa. I can go back and make this project later. The focus to helping the sherpas and those left behind, their wives, their children, so i am working with discovery to set up a way to be able to give back to those guys and help them out, and we have got the sherpa family fund, and that is what we want to make sure that they have, opportunities they may not have had before. What about the documentary coming out on sunday on discovery . We had a huge camera crew, so we were able to document and cover the entire thing as it happened, so i think the documentary may be, in some ways, more powerful than my show. It really shows what we were doing there. It shows the sherpa and their lifestyle, and it will be a tribute to who they are and what they did and what was lost. Challenging and difficult and, in many cases, lifethreatening, how climbing can be. It is nature, after all. Yes. Thank you very much. Good luck with the documentary on sunday. And an airline known for cheap seats and fees. We will take a look at some of the outrageous fees by Spirit Airlines. Keep it right here. All right, Spirit Airlines reported earnings, earnings that beat estimates, with cheap fares. Today, we decided to look at five of the most outrageous fees at Spirit Airlines, like these. They charge you to buy your ticket online . Really . I thought that would save you money. Tomorrow, live coverage from the conference, the first one in three years. Is the Company Going to unveil a new and improved product . We will have that and more. Have a terrific night, everyone. I will see you back here tomorrow. Thet is approaching 56 past hour, and that means bloomberg is on the markets. I am julie hyman. Lets look at how stocks closed the session. We had a rally, sending the nasdaq higher almost three quarters of one percent, and the s p 500 and the dow each up about half of one percent, previous earnings helping to boost averages, and we are also looking at treasuries ahead of the fomc decision tomorrow. Not a lot of change in treasuries today, but they are poised for the best month since january as the fed does meet. Economists have forecasted the policymakers will scale back their monthly debt buying and adam johnson is looking into insight and action. Why wait for tomorrows decision . We actually know the answer today. The action insight. This was a poll from abc news, and look at this, only 28 of those surveyed say the economy is getting better. That is not good. Almost three quarters say it is either getting worse, 36 , or staying the same, 35 . You look at gdp growth, and you can understand why people are saying that. 4. 1 . That is where we are here. I know 4. 1 sounds pretty good, but look at this. Over the past 50 years, 4. 1 is way below where it has been for decades, all right, so that is the problem, the slow growth that the fed governors are concerned about, slow growth, and, in fact, the opposite of slow growth, where you start to shrink, that is deflation. The minneapolis fed president is more worried about deflation. They should not rush to act preemptively, and Richard Fisher of the dallas fed, usually ad hoc, he says inflation has yet to raise its ugly head. All right, that is the take from the fed, so you do not necessarily have to wait until tomorrow. By the way, all of these perspectives have been shared in just the past couple of days. All right, so what does it mean for us as investors . Steady as it goes. The 10 year yield has been 2. 71 ,ent, right now at atht in the middle, and 2. 5 , that is the cell, and at three percent, that is the buy. Steady as she goes. You have got your plan ahead of the fed. A very tight range. Low volatility. And that is what the market is looking for, according to the managing director of alternative fund at credit suisse. There is a lot of Risk Appetite now, and people are looking. In some asset classes, you have more money, so one of the things like mortgages, like direct is ang, and anyplace there little bit of fear, money is not wants and everybody equity like returns, and that is hard to do. Linked tosset classes interest rates, one of them is old, a traditional inflation hedge, and we also saw gold the risk on mentality is resuming, potentially. It is up so far this year as tension in ukraine has led investors towards that precious metal. On the markets, i am julie hyman. This is taking stock for tuesday, april 20 9, 2014. Todays theme is announcement. Their earnings. Why investors dont like the stock. Plus the clippers owner Donald Sterling is banned for life from the National Basketball association. Reaction from the Los Angeles Business Community on this hist