For it all. It is thursday new york city. What would you rather do . Freeze and sit in traffic or open up a facebook account . Wow. I will get back to you on that one. It is time now for the new speed. Top stories from around the world. Consumer spending drove the u. S. Economy in the fourth quarter. The gdp rose at an annual rate of 3. 2 , matching the median forecast. The tumor spending increased by the most in over three years. 70 of the for overall economy. Google shares are rising after y sold mobility unit motorola to lenovo. It held onto most of the patents acquired when it bought the motorola unit back in 2000 well. Meanwhile, investors in hong kong sending the stock down over eight percent for lenovo. , kinder,a world gentler. They will take saturdays off at citibank. They dont have to use their Vacation Time each year. Similar policies and that productivity and keeping bankers from leaving that warm, fuzzy banker feeling. I dont know if i believe it or know what to do about it. Do you believe it . I believe what they say. I trust people by what they do, not what they say. We will see. You heard about them in the state of the union. Now president obama is traveling to wisconsin and tennessee to sell his ideas for improving Economic Opportunity in america. His critics are busy as well. Our chief washington correspondent peter cook is standing by with one of the most vocal texas republicans. Senator ted cruz. Much. Nks very im joined by senator cruz. We appreciate you joining us here on bloomberg this morning. The president is out there talking about a whole range of issues. Helping americans move into the middle class. One issue has been talking about his immigration reform. Right now, House Republicans are meeting on the Eastern Shore of maryland. Theyre talking about ideas as well for dancing these issues him including the possibility of giving legal status to those living in the country. What do you make of that question mark is that a move republicans should be making at this point. I think it would be a mistake. It House Republicans were to support amnesty for those here illegally. We need to secure the borders, stop illegal immigration, and improve and streamline legal immigration. One issue i fought very hard for amendmentsing ag and from 65,002 320 5000 any every Senate Democrat voted against that. We should secure the border, improving illegal improving illegal immigration. The washington journal had an the washington journal editorial why is it not move at this point the right move at this point question mark we need to focus on the top priority of the american people. That is jobs and economic growth. The state of the union this week it was striking throughout the entire speech. President obama did not acknowledge once that under his leadership we have achieved the Lowest Labor Force Participation since 1978. His economic policies are not working. Millions of americans have lost their jobs and have been forced and parttime work. They have lost their health care because of obamacare. That is what republicans a to be focusing on. That is what president obama. Hould be answering on his tour taking account and balloting that the policies he is proposed has proposed have not worked. We have a debt ceiling showdown once again looming here. Is that going to be another opportunity for you and for the republicans to wage their fights over some of these economic . Olicies question ma americans, to any the answer is obvious. Of course we should not just raise the debt ceiling without making Structural Reforms to stop the outofcontrol spending in washington. When president obama was elected, the National Debt was 10 trillion. Over is his today it is 17 trillion. The president wants a blank check. He wants to keep borrowing and borrowing. It is important to emphasize something. We know how this will play out. A strategy that the president is scaremonger the markets and suggest a default of the dead unless he gets a blank check to keep borrowing and borrowing. Borrowing so far has resulted in the credit of the United States being downgraded. Iimplest answer to that am a strong proponent of a bill that i call the default prevention built. It is a bill that says under no circumstances will the United States ever default on its debt, regardless of what happens with the debt ceiling. We will always honor our commitments and pay our debt. The reason it has not passed as president obama and the democrats are blocking it because they want to scaremonger on the debt ceiling. It has been challenged by democrat to suggest that ted cruz and others who supported would like to pay china before they pay u. S. Troops. Youre exactly right. Harry reid on the floor of the Senate Attacks me on that and called it the pay china first bill. That is worth remembering. Those same democrats come on about howand talk incredibly responsible it would be to default on the debt. They try to scaremonger against republicans. And we say, great, lets always pay the debt. Lets never default on the debt. Than they say, oh, that is a terrible idea. It is absurd. Of course we should pay our debt. That peoplehings dont always realize is if those in washington the president wants to play games. He wants to scare people because the alternative is to actually start living responsibly. The debt ceiling historically has been the most effective leverage for spending reforms 5 times. 50 one of the most successful bills we have had to limit Government Spending came through the debt ceiling. The budget control act came to the debt ceiling. Of course are you spoiling for a fight here question ma . Are you trying to occupy the senate and convince your leadership this is the time for a fight over the debt ceiling . Of course we should enact major Structural Reforms. Texas, theome to frustration that texans express is that politicians in washington in both parties are not listening to the american people. Theyre not solving the problems. The america people want jobs and economic growth. It want government to live within its means. Washington, politicians in both parties are going them. Asntend to continue fighting hard as i possibly can to make d. C. Listen. To force this town to address the real problem so we can pull back from this economic cliff. The window to turn this around is not long. There ness leaders out ted cruz and say, listen, we understand you are fighting for lower spending, but the debt ceiling, the idea that americas credit will lower, it is not worth it. I agree. We should not risk americas credit worthiness. We should never default on the debt. Any responsible president the president has the authority to take a default off the table. In any given month, there are roughly 200 billion of tax revenues. Interest on the debt is 3040,000,000,000. Wouldonsible president hold a press conference, look in the camera and say, under no circumstances will the United States of america ever default on its debt. Whatt agree with congress is doing but you have my word, we will meet our obligations. The reason he does not want to is he thinks it is politically advantageous to scaremonger and everyone on wall street who is worried about this needs to call the president and say stop laying games with the debt ceiling. At the default prevention act so we can never again have any question of a possible default on the debt. Youker john boehner have not agreed with him on a range of issues over the debt in the past 13 months. Is he representing republicans admirably in your view in the house of representatives questio . I dont really know john boehner. He has his job, i have mine. I was proud of house leadership. I was proud of how they stood up and fought to default obamacare the fund obamacare. They listened to the american people. The Senate Leadership to abandon House Republicans on the field and refused to support our House Republican colleagues i admire the leadership asked abo. The fight elevated the National Debate the harms that obamacare has caused. People understand all across this country now what an abject failure obamacare is. Its that the preconditions for repealing obamacare altogether as it is the biggest job killer in the country. It is hammering Small Business. What will it take to convince you to run for president in 2016 . My focus is not on the political side. I know it is hard to believe. It is all politics all the time in washington. What im trying to do is do my very best to fight for 26 million texans and fight for economic growth, jobs, and our constitutional rights. This administration has demonstrated an abuse of power, lawlessness, an assault on constitutional liberties that worries me. So i am focused on doing my job. And i have visited just early this morning, and 2016, my view is a voter is that i intend to vote for whoever is effectively standing up and leading. Whoever is effectively fighting for free market principles, fighting for the constitution, because we are really in a turning point. We are getting to a point of no return. I believe we can turn this country around. , in we are at the cliff would love to see dozens of candidates all over the country all following that model. Standing up, leading, fighting for economic growth, fighting for free market principles, fighting for the constitution. I cant pick of anything that would be better for the country then seeing lots of people leading to pull this country back. Is Hillary Clinton going to be hard to beat . We will see if she runs. We will see if she wins the nomination. I think she is likely to get the nomination if she runs. I think her path is going to be much more rocky than many in the media have protected. There is a natural petulant pendulum to politics. The obama economic policies are not working. Have lostf americans their jobs, forced into parttime work, lost their health insurance. I think come 2016, people are not going to want to double down on policies that have hurt somebody people. In particular hurting the most vulnerable. The ones who have lost their jobs they have been young people come hispanics, africanamericans, single moms. There have been people like my dad was 56 years ago when he came from cuba with nothing and washed dishes making . 50 an hour to pay his way through college. If he had been washing dishes today, he probably would have lost his job because of the massive taxes and regulations and burdens on Small Businesses. We need to fight for people like that 18yearold immigrant washington dishes. What is made America Great is we have been a land of opportunity where millions of people up and able to come here with nothing and achieve anything. Right now, that opportunity has been sorely diminished under the obama economics. We share you for thinking we thank you for sharing her strong views. We send you back to new york. Peter cook with texas republican senator cruz. What exactly is going to do when the debt ceiling deadline comes around in a few days. Again. K you when we come back, it is time for us to turn the page, go digital. Who says facebook doesnt get mobile . It seems like they do. For the first time, more than half of its revenue comes from smart phones and tablets. We will have more of that coming it seems like you can bet on anything related to the super bowl. Your money, folks. Youre watching Market Makers on Bloomberg Television. Now you can watch all of our interview streaming live and ondemand. Check out apple tv. Facebook is a lot to celebrate as the social Network Rings in its 10th year. Mark zuckerberg push into mobile paid off. The ceo has new tricks up his lead. As documented in a brandnew business week cover story. He has a buy rating on facebook and a 65 price target. He is with us from portland this morning. Our bloomberg west editoratlarge cory johnson. Brian, start with you. The most recent development. But earnings from last night. What do they tell you about this company and where it is headed . The company is doing very well. Estimates were spooked based on last quarters earnings because of the concerns about teens, add loads, but these were all unfounded. The focus that investors need is the emphasis on advertisers. On, one second. Why are teens not important . At a certain point, of course youre right. If facebook can continue to bring more revenue out of each of its existing users, that is great for a while. But at the company cant grow fast enough, grow that user base, at some point it is going to reach a saturation point and the Revenue Growth will run out of steam. Ofi think this is why a lot people have gotten facebook wrong. They focus on monetization for users. Is right way to look at it monetization per advertiser and growing the advertiser base. Facebook dwarfs everything else. They are so far ahead of everybody else. There is no advertiser who cannot satisfy their goals using facebook. Is facebook, the goal capturing shared wallet from advertisers, not the consumer. You may be right in the longterm, but the results show present growth per user. The advertising per user is up six percent. Even when they made this shift to mobile worries all 300 increase in mobile revenues. The numbers are great. The user numbers also show some strong result. What is the last time you spend money on facebook question mark none of us do. Ad sales for monthly active user up 33 yearoveryear. The payments is the only red number on our model. Advertisers are paying more to be on facebook because it is a successful place for them to advertise. Just as brian said, how do they prove that it is successful question mark are you buying things all the ads do is hurt my feelings. I care deeply about your feelings. Advertising is religious. You either believe it or you dont. Advertisers make decisions based on the least choice available given b the goals. Facebook being that satisfies the goals of advertisers better than any alternative. As long as facebook keeps developing new products or new segments of advertisers, it captures money from Small Business advertisers. Cori wants to take issue with your point. I want you to explain first why you believe facebook satisfies the interests of advertisers better than any other option. I dont get that yet. The absolutek at potential for facebook, it can reach more people on the web with one campaign than any other supplier. They are your onestop shop. They can reach half the population in the course of a month. They can target more than anyone else. Asking thes actually question, are you selling things off of this question mark you just want to be part of the medium that everybody uses . You have to segment users into different basis. Unlike google, if you are a large brand, the conversation that salespeople have is how do you get your spending up. You try to get money there because you think it is a good place to go. Is a lot more measurable than super bowl advertising. It can be more defined. What google offers that facebook is not his intent to buy. People dont go to facebook looking to buy something. People do go to google to buy something. I think things that people like our baloney. It is things that people purchase on amazon that are real. I believe that advertising works. On some level you have to believe that advertising works. I just look at what people like and i say, baloney. Around,aying watching tv. It is what people do. Cory johnson the bloomberg west. When we come back, bill ackman. Say dont count on regulators to help you out. More Market Makers. Stay with us. Live, from bloomberg headquarters in new york, this with erik makers schatzker and stephanie ruhle. Hoping about a government crackdown in a company. Bloomberg look at a similar strategy that some Fund Managers are using for a Lending Company called world acceptance, and it looks like these managers may have to wait a long, long time to cash in on their bet. It was told to us over and over that he is a guy that loves to short, but he would never get involved in a regulatory short, because he does not trust the government. Maybe you could shout, stop, thief you never know what they are going to do. May be. The sec turns around and investigates the hedge fund. Like 46 of all of the , and itradable shares was one of the bestperforming stocks of the day, and this is a company that lends money to people with horrible credit, and they charge them a lot of money, and as long as the government is going to continue to allow them to do whatever they are going to , it issumably legally not a very good short. This highlights one of the principal problems that hedge Fund Managers like ac kman may have. They make lots of money. Get lots of letters. The shareholders love the fact that they make so much money. That is right. Inbut even if bill is right his conviction, this takes deal along, and his investors do not want to wait anymore, and he has got the likes of carl icahn and dan loeb standing on his lawn with a bazooka. The market can stay that way longer than you can stay solvent. What about what senator ed , getting regulators to look into what herbal life herbalife is doing. Members of Congress Send letters all of the time. Regulatory agencies receive them you very much. You obviously intended this for a Public Market rather than us. That about her balife. Other people are. And do you want to look like you . Re front running you do not want it to look like you are being led by the nose, even if that is the reality. You could ignore it, Bernie Madoff style. It is a scam. The sec was warned about Bernie Madoff for a decade or so and did not do anything about it, and that was a situation where you could have shorted ernie made off, and the sec would have madoff,shorted bernie wethe sec would have said,w do not want to look like we are bein