networks run nfl games on thursday night? >> yes, and they will continue to do so. they will be simulcast. cbs will run the same games. they have bought a package for eight football games for thursday night and they will pay the production cost for the season for the nfl network. but they are not saying how much. the key, i think, is that i'm going to watch this on cbs, because i don't know what channel nfl networks is. >> i don't even know if i have it. >> i'm not sure, either, but i'm excited for thursday night football. the sochi olympics start tomorrow in sochi, a subtropical city. there have been terrorist threats and hotel still under construction and people have been tweeting that the water is not drinkable. and shaun white is pulling out from one of the competition, the snowboarding competition, because there are concerns over the course being unsafe. one of the athletes practicing on it roque his collarbone. another one had a concussion after he fell. and this was after he made -- they made modifications. >> and the bobsled team has not gotten their sleds there yet. they don't have their clothing. the luggage was lost in new york. it includes their blades. they will try to borrow somebody else's sled. it is always rough for the bobsled team. it is never easy. big news from cbs. it is -- cvs. it is the first national drugstore chain to stop selling tobacco products. i think this is a huge story. they will lose $2 billion in revenue in the first year because of not selling tobacco percent ofbout three their total revenue. did you know that cvs is the second-biggest retailer in the country echo after walmart. -- in the country after walmart? i did not know that, but i think they are wanting to focus on being a health care provider. >> that is true, but they will lose business from people wanting to buy cigarettes and other incidentals. will they continue selling sugary drinks and alcohol? where will they draw the line? you smokehat if cigarettes, you are probably addicted and cannot quit anyway, so you will go to walgreens. we are joined for the hour by a real estate mogul, the founder and ceo of a real estaten-dollar investment with properties all over the world. is cvs the anchor store we used to think of it as? changedord anchor has dramatically over the years. i would say it is still an important traffic builder. cigarettes may not be the highest profit for them, but it was a big heart. >> it brings people in, right? to cvs the reason i go is to occasionally buy chewing tobacco, which i know is a bad habit. >> and that will not be on store shelves anymore. >> they are trying to be a healthier solution and they feel guilty. >> but it is a fine line, right? if they stop selling tobacco products, do they stop selling other things like gummy bears or aerosol cans? people use those to do funny things as well. >> are you talking about people having aerosol cans? >> one of my producers told me about it. i don't know anything about it. >> where do you draw the line? customerve this to the because the customer wanted, or i will hold it back because it is bad for you. >> cvs is praying that other folks will follow suit. if everybody follows suit, it evens out the playing field. if it doesn't, it will be painful to lose that traffic. and a sixpack for thursday night football. >> it is all about getting foot traffic into stores. mogul same property bell talked to betty liu this morning about real estate investment trust. this into what he had to say. at the last there were 203. i think there are probably 30 of them that have size, gail, marketing pact -- market impact, etc.. >> investment trusts are everywhere. the last time my father asked me about it was about dotcom stocks in 2000. >> and we were talking about the housing market before the show today. it is a booming market. >> it happens to be a very good thing. particularly with major metropolitan cities. business is finally back. predominantly here in new york, but also in other cities. people are starting to feel comfortable again. they want to buy homes. but what has changed is where they want to live. it is no longer about living that perfect utopian life in suburbia. >> you are talking to two suburbanites. >> how about where i live? they seem to be pretty level in the last three or four years. >> the school district stores -- once the school district scores come in high, then there will be more in the city. the difference in the numbers between the city and suburbia are pretty dramatic, aren't they echo >> they are. but a lot of pumping going on around there, so with natural gas and oil -- >> and brooklyn. >> brooklyn is a suburb no longer. it is really its own city. expensive, but most people want to live downtown. they want an urban flavored neighborhood. we will talk about retail adjustment, particularly jcpenney. there may be the best idea yet for picking all of that retailers problems. >> i think that we should buy jcpenney and we should name it jay-z penny. ♪ >> this is "street smart." >> we are joined by jan zooms, from great mark f when you are a use, you cut your teeth on the first argentinian debt crisis and have been active ever since in distressed debt, right? >> actually, yes, i was involved at age 25 in the restructuring. >> but you are only 25. came out only a few days ago and i've been messaging with you about it and have been interested to know. a lot of people have been asking me because it is unchartered territory. >> it is interesting, because a lot of people have been trying to get involved in looking at the yield that you can get on the bond with prices going down both of your talking about trading in the 60 or 70 area. back anduple of steps realize that puerto rico is not going to be a domestic u.s. internal work out, or if it was, it would be like detroit. but actually come it has many more parallels to argentina or greece. a liquidityly not or solvency situation. then you are looking at restructuring of some sort. >> i take everything back to the fundamentals, and forgive me, the fundamentals are scary. the job situation is bad. the government has gridlock everywhere. they do not have great leadership coming out of puerto rico and there has not been for a long time. flight. you have 450,000 people that have left the island for jobs in other places, leaving the population down to about 3 million. >> what is the territory's main industry? >> tourism is the biggest driver. they are hurting their as well. why? in the old days it was public relations. now you have so many different good quality alternatives and you combine that with the negative press, it makes for a depression. joe was at one point the biggest retailer on the island, so he's got a lot of experience there as well. and for years, everybody wanted to buy the debt, because it is triple tax-free. mom and dad and her buddy owned puerto rican debt. if i understand it correctly, institutional investors are now forced to sell it. >> actually, they are not forced to sell it now based on one downgrade. too out of three. it is usually on average. at the very least, they cannot buy anymore. there was an effort by puerto rico to get some funding. a couple of banks did -- they billion atding at 2 over 10%. no, it would have kicked the can down the road. to ground -- to downgrade out of three, they kicked out of the -- and at two downgrades out of three, they kicked out of the index. init is starting to factor the same way that you got a spread being factored at the government level. now it is being factored in at the business level. you've got something that is bad that is getting worse, because they have to service debt. >> i think you put your finger on the issue. andy world, you look at it if you see a government that is showing the plan where the growth will increase so it can handle the debt load, and then you see the situation where there is no evidence of gross and in fact, there is contraction and taxes are being raised and people are leaving the island, then if you cannot grow out of the debt problem, how do you solve the debt problem? >> what you do as an investor? >> if you are like me, i wait until everybody runs to the exit and the bottom falls out. do you think the value is there? >> at this point among no. $.60 on theing at dollar. there is one trait that seemed to be kind of random that seemed like somebody was pushing the price up. i think you will start seeing some selling. >> in the u.s. basically come out and say it would not bailout puerto rico? said something like that, but the u.s. government cannot not bailout a state or territory. >> of course you can. -- it can. you are bringing up some very valid point about the management of puerto rico. on the political side and the economic side. you find that most of the people who are managing the show, maybe they are operating in gray areas and maybe the economy is not tight. restructuring, what do you do? you do not bail them out. look at the reforms that greece has been going through. gettingctually been traction. >> why throw good money after bad? that is the bottom line. .> maybe the muni market but to backstop puerto rico? especially after detroit and other munis, i don't think that will happen. >> could you do both? make people nervous when you let the united states government determined that? >> the reason why it has always protectionfficial was to do with some politics. cuba, and a lot of things related to the caribbean. of the geopolitics what hasrea today, changed? thedo we feel like government can solve all problems for all people? meand smaller populations fewer voters. population,of small is in a group of investors that are investing in distressed greek debt and other similar debt, aren't those like those who would be hiding the puerto rican debt as well? >> you've got a point. -- i mean the puerto rican debt the puertoeyeing rican debt as well. >> you've got a point. the guys that are getting in now might have to take a couple of hits. but if you look at their size, they may decoy $2 billion. they were the guys who win for the funding. what is the size of the debt? $80 million echo do the arithmetic. -- $80 million? do the arithmetic. >> there was so much out there, and it was so attractive to in -- investors and institutions. >> everybody thought there was all this extra return based on the yield on the taxes. the moralbate is hazard. does the government bailout folks that potentially got into something very lucrative and eliminate their risk? what is the message for other municipalities that are not commonwealth? plainly, we have state pension systems across the u.s. that are underfunded and in really big trouble. they have been promising people enough return so that they will get a percent a year returns -- eight percent per year returns on their money as opposed to two percent or three percent. >> eight percent return? if only. our guests will stay with us. >> and from one beach vacation to another, we're going to talk about mexico versus other emerging markets. ♪ >> we are back with our cohosts for the hour. estate -- aeal one-time retail and now real estate mogul. >> and our other deals with distressed investing. we are looking at mexico. you are very excited about mexico. what about the drug problem, though? >> more than excited. i think the drug problem is what gives it so much up. they cannot get any worse than where they have been in terms of the assessment in the marketplace. i look at the entire world of emerging markets and i don't think there is a more exciting story than mexico. if i had to pick another, i would probably say south korea. >> is south korea and emerging-market, though? >> technically guide is, but that is the big debate. from an income perspective it is not, but from the technical what an emerging market is and the emerging-market indexes, south korea is part of it. >> the whole "emerging markets" as a catch phrase. south korea got picked up during the crisis and no one did the re-categorization that they should have. is a great chart that i found on twitter from duncan weldon. >> a venn diagram. >> or as my kids put it, lots of circles. mexico, indonesia, turkey, and nigeria, or mint, as i just said. and then there are those that are more in trouble. >> the first countries of all of those countries do not make any word, the fragile five. >> and all those were the stars of the last five years. mexico to my i love it. first, the new president is really fabulous. the last president did the heavy lifting in terms of that owning the drug cartels. and the new president of the country is really focused today on improving the country's economic and quality of life. he's now privatizing the oil industry, for one. and number two, he's improving the school system and the methodology for educating their students. they have very low debt on the country relative to its gdp. like thebut not least, united states, it happens to be a beneficiary of all of those fossilized from 100,000 years ago, fossilized rock i will give you natural gas and oil. and through fracturing, whether you are with it or against it, -- we will stay away from the politics of it in terms of polluting, but it will benefit mexico in a big way. -- i livedo confess in mexico in 1982 when the latin american debt crisis happened and i see all of the improvements. there is no question that it is not quite privatization in the oil industry, but it is opening it up to investors and more importantly, allowing foreigners to ask -- to do exploration. the reserves had been dropping, but now they will start picking up again. , i do getntage point a little concerned. there is a dispute about the operation where it looks like there's a political angle on it. we saw a change in policy on the homebuilders that cause a catastrophic fall on the equity and debt prices there. i still see a problem. that was dangerous. >> i agree with joe on that, that it was totally overblown. >> god forbid, i don't want to jinx myself, because i do spend a lot of time down there. it really is a lot safer than it was. the telnet has come down there. if you -- the tongue has come has comee -- the tone down there. >> it is 26 past the error and that means bloomberg is on the market. it is looking like a mixed day right now. we don't have much of a direction. we had some pretty great ives in japan overnight and thought we would have another positive day in the equity markets today, but we had a few disappointment in the adp numbers that drag us down earlier, and the cvs news drag them down about two percent. >> it is waiting for the jobs report on friday, isn't it? this is what everyone will be looking at, that an janet yellen. >> no question about it. ♪ but look at that. the snow seems to have cleared up, but there is a lot of sludge on the streets. >> well, it is new york. >> there was eight inches of snow that i had to shovel off of the car. >> i did not even bother. i put it into four-wheel-drive and flew down the parkway. >> it would be great if we could take off monday to go skiing. >> i was so bummed out when punxsutawney phil saw his own shadow. >> and now you are psyched because you can go skiing. >> i can drive around in the snow. youentioned earlier that were the biggest retailer in puerto rico and you did a lot of retail, starting with an innovative idea because you are from brooklyn and for an entrepreneur at fairgrounds, flea markets, and it grew into a massive empire. tell us about it. >> i saw an opportunity. we looked for the underserved customers. we saw how busy the malls were. they were bustling. >> but malls are not busy these days. >> business changes, it's cycling. capital and money in people's pockets to go to the mall him and fewer reasons to go. one is the perspective of where the money is going. i often say technology. a playstation or an xbox and on anomes with it, average person's spend per household could eat .9 shopping -- could eat 29 shopping chances at other places. >> he -- because you could $1000 on an xbox or playstation. >> or both. >> some people buy both. the 80's and in i'm a child of going to the mall on the weekends. according to the international council of shopping centers, there are 23.8 square feet of mall space per person in america, versus almost four in in thend almost five u.k.. that is a huge differential. >> it is massive. i have lived in germany and the u.k.. i shop a lot no matter where i am, but i'm shocked at that chart. >> we are american. everything we do, we go big. when people wanted shopping malls and it was all about consumer spending, we went eight. now it is a bit of turnover. now people want to live in the cities. suddenly, you have underserved retail in major metropolitan cities in the united states, but you are overwhelmed and over-retailed. >> how are malls in the city different from malls in suburbia? not so much malls in the city. it is predominately about the street. it could be shopping on bowery, shopping in lido -- in a lido or soho. >> the neighborhood. >> shopping in the neighborhoods or the major streets, the major arteries. out in california a could be shopping on rodeo drive. we also have in white plains, the westchester small -- mall is a pretty nice mall and where i'm from in columbus, ohio, it is a pretty nice mall and pretty packed. but in these small towns or mid tier towns that are completely abandoned. >> except for the anchor stores. >> if you are a retailer, you need that flagship store to build the brand. let the customer know you have that billboard, but in terms of the mall, a lot of folks are doing what you and i are trying to do. why a new care of shoes, boom, boom. to bloomingdale's and get something nice, or go to tj and get something cheap. but i won't go to jcpenney. what can they do? >> by the way, you hit the nail on the head when you said t.j. maxx as an example. they are eating the lunch of companies like jcpenney. to be blunt, if a penny and kmart, they are all dinosaurs. they are not run by merchants. they bought -- got bought by financial guys who thought they were good investment. and the financial guys said, you know, i'm going to try to when that business. >> jcpenney was run by a retail guy for a wild, ron johnson. you know him, right? he did a fantastic job at apple. of retailm the king stores to going to jcpenney -- >> you just said it. you had steve jobs's brain and ingenuity and the hottest products. it was more about how to display it. jcpenney, they are selling good old fashion clothing and not doing it like t.j. maxx or marshall's, giving you great value, or like companies like forever 21 or h&m that are giving you value. kids and those in their 20's that are going to those stores, they do not even think about paying $200 for a pair of jeans. >> it sounds like, if anything, ron johnson should have close more stores. there are a lot more stores than we need. retailers tend to use that expanding through getting -- getting their gross numbers to restore openings. it seems like a broken model these days. >> it is. and it was quite a challenge. he went from selling coca-cola to gold. had the challenge of reinventing an american institution. the world changed. you've got to be with it. >> also, in the case of at least ron johnson, he had already reinvented one thing, and you cannot take that away from him. we will talk more about technology will link him back. what joelwill hear has to say on word association. ♪ >> welcome back. night -- time now for word association. what we do is we give you one word and you say whatever comes to mind. thatl start out with one we've been thinking about a lot lately, just to make it easy. so chief. .-sochi >> don't kill us. no terrorism. i hate to say it. >> another guest had been saying that if -- that there is going to be a problem, but just a question of how big it is going to be. the tweets from people that are actually at sochi, have you seen some of them? >> yes, and i'm kind of scared for them, scared for the athletes. >> just the construction and the lack of hot water. >> there is a toilet issue. lid -- the lack of drinking water. >> it is not brooklyn. >> how about this one? guardia -- laguardia. >> oh, ugly. as i often say, the first and last impression you make on a customer, like in retail, is the most important. and i feel so badly for new york's airports and new yorkers, that it is the first and last impression we are making on tourists, and even on ourselves. >> all though, it's gotten a little bit better. >> the terminal at jfk is great. >> the governor has just addressed that he is taking up a lot of global gateway initiatives and will get behind him. want a nice example, go to dubai. >> go to asia. >> go to shanghai. go see the airport system and the velocity of what they are putting through. >> they know it is the first impression, like you said. but even turkey. turkey might be pretty screwed in terms of people's view of it, but they are building an airport system to handle 100 million passengers a year, 30% more than the new york airport could ever dream of having. york got to see the new airport and the united states be able to compete. >> here is one, speaking of compete, david beckham. >> oh, rockstar, baby. it is not just about how he plays the game. i've seen him socially, around town in london late night once in a while. just a beautiful guy, a fun guy. >> and he's going to buy 18, right? rteam, right? >> yes. he's a good guy all around. >> k here's one, jay-z. someone said, who are the most influential world -- people in the world and then another category of who is the most influential outside of politicians. he was rated number two in terms of how he can influence not just of coulter, but in terms voting. >> he is like the ambassador of brooklyn. >> he is brooklyn. on morsi projects on the other side of coney island. what he has done is great. when i was a kid growing up -- even 10 years ago, i will admit it, even though i was one of the brooklyn,vestors in when people asked him where he's from, he said, i'm brooklyn. in ahe is asked when he's foreign country where he's from, i'm from brooklyn. >> here is one, the knicks and nets. >> every game i'm there, the knicks. the nets have been ticking their butts. they are the only team that the nets know how to beat. >> you have a word association for us, right? >> this fit. >> i'm a huge job own fan. i don't have mine on right now because mine broke. but this kind of wearable technology, whether it be fit another, aown or wearable band, i'm hoping apple will come out with it as well. >> i hate it because it measures how much i sleep, or how little. >> i think you're going to see , one of the places it will have a big influence is in health, people's everyday lives. >> how about this as our final word for word association -- flush. slush. >> i would prefer to think of it in terms of a slippery, but i'm afraid you're talking about what is outside the window. time that is open and borough people -- that is brooklyn and borough people got a little extra spec over manhattan. >> you definitely get our respect. >> when we come back, we will talk about the office of the future. ♪ >> welcome back. check out this office of the future. these are the new downtown los and they are no offices, no desks. it is to save money and space. controls more than $5 billion in commercial and residential space. to me, it looks a little like bloomberg offices. >> i was actually in that office last week on thursday. -- obviously, i don't just do flattery. you guys were ahead of the curve in the open landscape, tighter space, communal environment. -- inis space in adelaide l a, downtown proper, that a real estate company happened to build is a reflection of that, sort of like the next generation of what you have going on over here. >> where do you put your laptop or tablet if there are no desks and no offices? >> first, you've got your cubicle or a shared cube, -- shared cubicle, maybe your tour that you lock. but all of it becomes too high isel technology and how it changing the world that we live in every day. >> scarlet and i are used to thinking of wall street financiers as always being vilified. we live on this side of the country. but in san francisco, -- >> it has changed dramatically, yes. why? it is where the wealth is. just about the wall street fat cats anymore. really, where the metal wealth is globally is the folks in tech. >> and it is not just in silicon valley, either. been focused has on san francisco and the bay area, but you see it in other parts of the world in other cities where tech hubs have sprung up. everybody thinks about the cool kids and when they make it and they will equalize things. last week in l.a. i was listening to a fellow who was running for mayor in oakland. he was talking about the importance of getting to these young people that are making all of this wealth, the sensibility that a lot of the wall street pack has had, to take care of their communities and give back. is that a regular person cannot afford to live in that city. the challenge has become the commute. back to thearts technology in this industry and how it has changed. we are about to hit what i call technology 3.0. >> which means? >> we are now in the second or third phase of technology. until now, it was about technology changing the physical and automating it. things like manufacturing and making things more efficient and lowering cost of production. and that helps -- and by the way, that hurts jobs. >> what do you do? you have the structural unemployment problem. a lot of people do not have the training to do the kind of jobs that pay a lot of money. and the jobs that are left for them do not pay any money. >> we need to be putting our money instead of just into fixing the highways into educating the population. the next change will be about robotics and mental technology. part of that wealth that we said had fat, google and others will have aliens of dollars to invest and they will be investing by buying robot companies. -- will have billions of dollars to invest and they are investing by buying robot companies. lex winky so much for that. twitter things are coming up next. >> i'm adam johnson, trish is on assignment. we are headed into a flat market today. finally, a break from all of the volatility. i'm kicking it off with number 10, here we go. time warner, up about one percent as the company beat fourth-quarter profit. cable and satellite companies pay more to its programming. and whether it is game of thrones or basketball, they are on the way to the bank. >> number nine, myriad genetics after reporting the last quarter is on the rise. buying a maker of autoimmune disorders medicine. eight, 3-d missed estimates. >> and twitter is down about one percent today. the company is set to release its first earnings report after the bell. report is literally minutes away. because heer six, knows it must vegas. growth is down. it has climbed at the slowest pace since october, 2012. >> number five, buffalo wild wings dropping nine percent on mixed forth -- fourth-quarter results. morgan stanley knows that minimum-wage hikes and wing costs could put pressure on the company. >> they look so good. >> to you, maybe. they look messy. >> did you go into a buffalo wild wings last work -- last quarter? did you purchase wings? >> not at buffalo wild wings. >> but the point is, this company missed because people are not going in and buying as many wings. >> there is a line every time i at the terminal at jfk. >> can you imagine if somebody brought those on the plane? >> i went into subway dividend and other day and somebody was eating sardines. that is repulsive. i am moving on. ralph lauren down about tree percent after posting a third-quarter profits. it topped estimates. >> number three, estee lauder is dropping five percent after reporting second-quarter profits fell. forecast as revenue the ceo told the wall street journal that demand is growing in particular in china and thailand. >> number two, gilead sciences falling four percent. the world's largest maker of hiv as forecastlined fell of its revenue for hepatitis c drugs. one, disney. its stock is up one percent. the company is getting ready for first-quarter results. that will be in just a few minutes. analysts are looking for a profit of $.92 on revenues. [closing bell] there is the bell. it truly means we are moments away from getting those reports. right now, the s&p is down three points. a great fromve this crazy volatility. >> it was definitely a posco and of a day. you had these dramatic up-and-down moves, in fact, the dow was higher for part of the day. right now, you're talking about the dow down less than a point. >> energy is down 9/10 of a percent. energy, if you look at the 10 yours, energy is the cheapest right now. but with good reason, people think that high oil prices are good for energy companies, not necessarily so. >> it can affect the margin. we're trying to get more context on what is going on. we are waiting for a slew of earnings. twitter, pandora, and his knee, disney will be coming out at 4:10 -- and disney, disney will be coming out at 4:10. you are always watching deals. we had somebody talking about the number of ipos. what is your take? >> i don't know about that. it was supposed to be a strong year. last year was on fire for ipos. that is because the arctic went up uninterrupted and now we have seen a rocky start to the year. it makes atricure to bring in any company public. one stock -- it makes it difficult to bring in a company public. interestingwill be to see because the street has given them some leeway on the bottom line, so long as they grow the top line. they have to get the revenue with the door. the street is willing to give them some leeway and not see as much profit growth but the top line has to go. this is another example of a company that has to show it is moving on that front, especially when it comes to ad revenue. they have to bump those numbers up. >> whether you're talking about tos or the market, you have remind everybody, we are not very far into this year. we heard from the cooperman them, larry fink, both of are optimistic. if you look at wall street, we are still looking at above 1900 for the year and going into the year, people like barry knapp, who we heard from yesterday at barclays, he had predicted you might see a correction like this. and then the second half of the year you might have some gain. of everybody,ead calling for adjustment. we knew the fed would taper, we kind of started to have a feeling when it would be. now they are doing it. it takes people time to adjust to the fact they are pulling away the kool-aid. which is healthy. >> it is a process. it is interesting to see economists have not revised their growth forecasts. people think the economy will continue to grow, a positive story domestically, and not the contagion in the emerging market so that we will see the winners from the losers distinguishing themselves. we can see that in the stock market. that's the same story playing out, maybe this year will and on the upside but you will really start to see the distinction between the stocks that don't have the support to justify the price, like what we saw in 3-d printing today. >> cory johnson is joining us from san francisco. you were talking about this on "bloomberg west," stocks down 20% because 3-d systems is saying growth is flat. what is going on? >> we talked about a lot of the action last week as well, back in new york, we talked about a short seller pointing out some problems that appeared in the business. he was dead on. , 3-d systems had this expectation we were going to see a massive boom in consumer use of 3-d printers. they struck a deal with staples to get 3-d printers into staples stores. so customers could buy them. when they missed last quarter, they did so much spending on marketing to the consumer. when they announced last night, consumer weakness. if you have this great new ofduct in its first year mass adoption, you have a big spending into marketing, and then you say, the only problem is that the consumer and not buy the product. it suggests it is a small market. twitterto let you know, is out. it looks like they made two cents. julie hyman, i know you have done a lot of work on twitter. just looking at this number, looks like revenue is more than expected. >> even the fact they made money is surprising. i don't think there were any estimates for twitter to make a profit in the quarter. i am glancing at the release, the revenue you mentioned, more than doubling. recent quarter, full-year revenue at 66 $5 million. pretty much doubling in size. what you want to look at are some of the numbers in terms of users and how they are translating them into profitability. what is the monetization, advertising. it looks like it is working well because if i am reading, cory johnson, feel free to comment, it looks like twitter is effectively doubling the revenue estimates versus what the street is forecasting for the full year. the street is at 640 million, it looks like twitter is saying 1.2 billion dollars. that is more than double. >> they are saying that. as i look at my motto for expectations, about 640. in terms of revenue, we will look at the earnings and see what that is all about. ofre is often an assumption stock compensation expense right after a company goes public. so the eps number, the gap can be all over the place. corridor, 40%, 41% of the shares were short. you can expect extreme volatility. this is a deal, an ipo that is so closely scrutinized, you can expect they wanted to keep expectations as low as possible. it will also say as a look at million,number, 241 that is up from 232 when they went public. that is the slowest growth rate the company has ever seen. 6.4%. that it had been a modest increase. like they really focused on monetization over user growth. that has big the big thing. gears andave to shift make it easier and more intuitive for people to use twitter at the end of the day. they spend the quarter really rolling out a lot of dynamic ad products. >> let's hold off on the notion this is monetization. stock compensation right after an ipo is such a weird bogey. we don't know how much that would have contributed. operating earnings will be more interesting. that will tell us the problems. >> one more number, i don't know if you had a chance to see, -- advertising revenue, talking about revenue, per $1.49 intimeline used, the fourth quarter. >> they mean $1.49. that is a huge increase. tricky metric. it is not 1 wall st has fully appreciated or adopted in their model. dids an indication they some of the quarter -- >> let me give you a comparison. $.85 one year ago for revenue per thousand users. they are making more money from every user, dramatically so. the take away.h you can see the volatility at the bottom of the screen. that looks like the take away you can see the volatility at the bottom of the screen. right, cory johnson, thanks for walking us through that one. all right, coming up, the earnings action is going to keep going. we have disney in just a couple of minutes. we will have full coverage and the fed has spoken. emerging markets do not like the message. i will explain what that means. we will be right back. >> everybody's worried about emerging markets. 10% of the s&p earnings are tied to emerging markets. it is not a major number to the economy. it is not a major issue. ♪ just want to point out twitter, earning two cents, they were supposed to have lost two cents. the stock is down 15%. we're trying to figure out what kind of growth there is. emerging markets, they do not like the message. time for inside inaction action. here is what we learned from two separate fed presidents in the past 24 hours. they said the same words, probably a high hurdle to deviate from the taper pace. thing, thesame richmond fed, the hurdle should remain high for pausing tapering. in other words, we are tapering. that is the deal. for us to change that plan, there is a very high hurdle rate. that is what both of them are saying. taper is the order of the day, according to the fed and here is how the emerging markets are dealing with it. venezuela, this is in the past 24 hours. they had to suspend an auction of currency it was planning to do this morning. maturities are being extended on the dead from 50 years.o all of a sudden all of the emerging markets start to have issues. last night we learned puerto rico was downgraded. not that these are at necessarily because of high hurdle, but it is all part of the same story. you pull away the punch bowl, emerging markets do not have the money supporting it. the trade is very clear, it is simple what is going on. look at the dollar index. the dollar index in white, ok, look at what's happened over the past six weeks. it is going up. that is because they are pulling away the punch bowl. that is good for the dollar. meanwhile, emerging-market currencies, you can see in yellow what has been going on. by dollars, stay way from emerging-market currencies. there you have it. we're going to take a quick break. disney is going to be out any minute. "street smart" will be right back. ♪ >> earnings out with better-than-expected numbers. let's go to jon erlichman. run is through what you have. one dollar four cents or share, the estimate was around $.91. i think, you want to know with the company in terms of what they're doing to grow the business. better than estimated, $12.3 billion in revenue. $2 billion was the estimate. as you go through the businesses, you understand why. the biggest driver has been the cable networks. they get combined to a group along with abc but if you look itthe media network revenue, was basically in line with the kind of growth analysts were looking for. it was gross compared to last year. the parks and resorts, another key driver. revenue was in line. there has been a lot of discussion about not more attendance, but the amount everyone is spending when they go to the parks, increasing as rebounds.y that number was up. one of the standouts was the box office. a lot of people talked about the success of the film "frozen." coupled with one of the marvel movies, the "thor" sequel. which is easily a big increase from last year, consumer products also relatively encouraging, 1.1 billion dollars in revenue. the interactive side may be the weaker spot and has been one of the challenged areas for them. but they have had some success with the game "infinity." >> jon erlichman, stay with us, jon. larry joins us now. he is a portfolio manager. larry, you're the guy with skin in the game. what is your take? i think the things that are going to contribute to long-term value and disney are either just fine or they are going to get fine when the weather gets better. "frozen" is important for them. it is a major new franchise. you have not began to see the synergies play themselves out an sure and isd i am meant will be talking about that. the second thing, the cable networks are the top of the food chain. that is a powerful food chain to be at the top of. espn is probably the single best cable network business around. and theen this franchise value of the company, you have enough to sustain superior evaluation. in a couple of years, you have the park in china, which will be a huge driver of the park franchise and the synergy from collecting tolls from the other characters, if you will. the stock looks good. the bad news is it is not really on the bargain table, along with all of the other guys in the entertainment business. you kind of look for a period where they will have an accident and give you a buying opportunity. this was not it. what a great long-term holding for investors. at 18 timesding earnings. and those earnings are growing. a lot of guys would say that is a fair value. when you look at these numbers, you made a comment to me, you said it is a parks business and a studio business. >> espn and the theme parks and the studio, the studio was big. "frozen" was a huge hit. that is nice for them but it also means next year they do not have another hit, and it will be a difficult comparison. espn is steady. affiliate fees, advertising accounts for half of their operating income. espn is what you want to look at. it appears to be growing. espn gets more in carriage fees from the cable companies than any other network. it is the jewel in the crown. is there any risk to espn's fees? >> i do not think there is any risk to the carriage fees. espn is well locked in for a nice growth for the foreseeable future. competition is increasing. you can see that with cbs bidding on the package of the nfl games. i will take a chunk out of their cash flow because they won't be able to sell advertising thursday night for what they did the eight weeks cbs is on because people are not going to go against the nfl. it is too powerful in the broadcast business. taking chunksle out of the company, but they have these wonderful businesses, i do not think they got proper attention, the cruise line business. they have been expanding the fleet. they sell out. people go to the parks. marvelousry integrated way to create wealth for shareholders. i like to buy the stock under 10 times cash flow, i am a little above that right now. i don't think i'm going to get a chance anytime soon. >> it is trading at 13 times cash flow. you're going to be sitting down with bob eiger, that is going to be later on this afternoon. what do you want to ask him? think, larry talked about the fact there are some powerful brands, but there is a fast world of consumer technology. you spent time talking about twitter, the way people are consuming video and getting their news. has talked about mobile being a game changer. they have tried to get all of their content available on those platforms. you definitely see that when they are tied to the world of cable, but also rolling out apps like the watch espn app. i think there are questions about, can we fine tune that? find ways to generate more revenue from games in the mobile world. we have seen the challenges like zynga. can we do other things? can we make our interactive unit more of a bright light? they have taken a lot of effort to try to turn that business but as i highlighted, if there is one thing to work on, it is that part of the business. >> you are going to be writing your article everyone is going to read later tonight and tomorrow. what will you lead with? >> looking at the studio business, "frozen" help to them. want to see looking forward whether they will be able to capitalize on their tv networks online, tv everywhere, without hurting their relationships with the cable guys. reading your article later tonight. larry, thank you for joining us as always. we will beichman, watching you tonight. your interview with bob eiger is going to be at 6:00 p.m. eastern on the late edition of "bloomberg west." there he is. before we go to break, twitter 12% on thedown about last book. that is ugly. it is amazing because they made two cents versus a forecast of losing two cents. that is not good enough. down 12%. we will take a quick break. by the way, the roundup is coming back. don't go anywhere. ♪ news onve some breaking coca-cola. carol massar went inside coca cola. smarty are a very company. coca-cola is buying a 10% stake in green mountain coffee roasters for one and a quarter billion dollars. green mountain makes coffee, it is those pods, we have one at home. they are developing a cold system and so they are going to productseloping together. this investment is part of that. >> doesn't have to do with the fizzy drink? >> sounds like a reach. we know cokel say, cola beverages are important to the company but this is a company that has so many brands globally. we think about the soda but they have been very smart over the past two years, for a long time, branching into water, juices. of peoplehe trend looking for healthier drinks. they have been very smart in terms of moving into other businesses. >> and curious we think of coffee as "healthy." it is acetic. i have kidney stones. you have a whole system on your desk. >> i know. i have a machine on my desk. you are right. >> you want to know more about the keurig cold? be availabled to in 2015. it will use a singleserve pod, including carbonated drinks, enhanced water, sport strings, and tea. so it would be like -- >> carbonated drinks. >> soda stream makes a one or two liter bottle. this is a single serving. >> the difference between a pot of coffee, to switch to the keurig. say, coffee. >> there is your breaking news on coca cola. meanwhile, these are the stories we're tracking ahead of tomorrow. jules, you are on the money. >> talking about bill gross and where he is putting his money. says warning investors, he our word of the month is to be "careful." bull markets are caused by or accompanied by credit expansion and qe tapering, which will slow philosophy. be as growth may not robust as the imf and other model driven forecasters might assume. so much for cleanest dirty shirt. there is no new catchphrase. >> you have arty seen this in emerging markets. in terms of higher interest rates, they have benefited by a lower interest rate policy around the united states. a lot of money flow into those countries as a result. that is going to slow down. >> and the big story is addresseschina, as it its shadow banking system. if you think about how much credit is made available and intentionally scaling back, it will have an impact. theou think about the fact u.s. and china together are about, call it a fifth of the global economy. both are pulling back. >> going to impact the velocity. stocks gotting crushed today. here is why, 3-d systems, off up itsgoing to ramp spending. the other shoe that is concerning, even more so than they have to spend more money, is that revenue growth is slowing down. it may only be up small single digits. that is not the blockbuster growth everybody has been expect in. whitneyyou about shorting 3-d systems. beginning, the beginning of the end for 3-d printing," referring to the sector as "stupid," and he put hammer2 u's in a row to the point home. on the one hand you feel like this is the future of manufacturing, but it has to be done -- >> it is not new! short seller who is telling us this has been the new thing the last 25 years. than is nothing new, other the cost had come down for the consumer. technology has gotten better. >> he put out a great statistic. he says the entire market is $2 billion. the market cap is 10 times that. >> because if you are a bowl, the argument is the existing market is the potential market. the pie-in-the-sky thing is to use these things against everything. >> i am just saying, this is the bull argument. could see it play out in the educational system. you could see this, maybe a school buying a 3-d printer. my sister went to the rhode island school of design. they had a number of 3-d printers. masters program, but you can see it trickled down into the younger ages. it is not like everybody's going to rush out and buy a 3-d printer. and if they do, the cost has come down. >> which it has not. they are still expensive. $2000. there are two ways to look at this, the consumer version, the industrial version. industrial, i get. you are not going to spend $2000 to be able to print out toys to play with. >> you're going to end up like adam and i have 3-d televisions we never use. >> that is exactly right. bestught, i bought mine at buy for $1600. it was worthless. worthbout something writing --re really they are really going right after soda stream. they allow you to customize your during weeks, right there, and now coca cola is going to have a single serving. >> they found themselves in a pr fiasco. that story kills me. this story, though, i love. cbs, check it out. they are going to stop selling tobacco and all of the cvs pharmacy locations. pledging to help the millions quit smoking through a national campaign. the first major drugstore to ban tobacco. i kind of love this. i love this. i know this country is all about choices, but if we are going to be stuck paying the health-care bill, companies are taking stand. especially for cvs, they're trying to lead the way in terms of being involved for individuals. to be. have it is a good pr move as well. and allotted the company. >> and business. not just pr. >> it's they want to work with companies involved with health care's comment it is a better thing. -- with health care, it is a better thing. build thewant to business of prescription jugs, you say we're not going to sell stuff that is not healthy. >> the bottom line is, this is a low-margin business for them anyway. it is not that big of a loss, but the question is, will that affect foot traffic going into the store? what the dollar stores have done is actually introduced tobacco products into their stores because they want to increase foot traffic and they have seen a 4.4% increase. >> that is sad. >> said the true. >> are you going to get more bifurcation of the american consumer with something like this? everybody goes into cvs. now are you going to drive those lower income consumers into the dollar store looking for cigarettes? interesting, it has cultural ramifications. >> we'll have to watch the numbers. >> we are out of time. excellent round up. we covered a lot of ground. tiz leftp, norm pat his courtside seats. there he is. he came to new york. we are talking about his newest venture after the break. ♪ >> time now for the scene where we bring you the business behind pop culture. internet and revenue climbed to 10.5 billion in the third quarter, music to the years of norm pattiz. his podcast features interviews -- celebrities interviewing celebrities. now.pattiz joins us great having you here. last time you were in los angeles. you did not like the results of the lakers game. >> nothing has changed. the last time i talk to you, i did not like the lakers season. i do not like them now. >> how are you getting a bigger slice of the ad pie? on-demand audio is going to have the same effect on the radio and audio business on demand television and video is having on television. clearly, it is focused at consumers who want to be able to listen to programs, when they want, and how they want. taking a look at the business and realizing there are no serious players in it. i harken back to the days of when i started westwoodone -- in theest radio operator country. >> on the syndication the network side. it was pretty much a one-man band. podcasting business today is pretty much a one-man band. so we are out there talking to advertisers, having some good luck getting people to understand there is an opportunity. >> it seems like to distill it down, this is targeted, right? if somebody is paying for a podcast, that person wants to hear it. you can take that to advertisers and say these are the people you want to reach. chosen to listen. >> that is correct. if they are going to go to download a podcast, making that choice, whether it is adam corolla, or any of the national public radio podcasts, stone stoneteve off than -- cold steve austin. kathie lee gifford. if they are going to make that determination, you know they are a fan and they are much more motivated by what the host of and saysam is doing they should do. >> you are in new york to address the interactive ad bureau. what are you telling them? >> i told them. >> last night? >> this morning. i did a couple of things. i got nothing but badges. i told them that this was the direction not eu was going and we should be able to take a look at what had happened in video and how the nature of consuming entertainment product on radio and television was moving in the direction of on-demand. it was clear. it was unequivocal. we needed to get on the bandwagon and we were going out to create the first company in the on demand digital audio space that had the bulk to be able to tell the story. >> i can understand your sales pitch, they are the buyers. what did they say to you? >> i have given a lot of presentations since the middle of last year. division is only one year open. open for one year for business. we have taken our downloads from 30 million monthly to 130 million monthly. when we talk to advertisers, any i have notnow, really gotten a negative. there are reasons why, things we have to do to make ourselves more appealing to advertisers from the standpoint of the kind of information we supply, but we are working on that. there are plenty of people who are giving us the benefit of the doubt. our list of advertisers is looking more impressive. >> and you created the radio network, the largest operator in the country. what a pleasure having you on. >> thanks for having me. we are going to talk about what is going on with deepra choprak. of 75 bookshor translated into 35 languages, 21 are on the new york times bestseller list. he will discuss a new online venture. depak shopra. , he managed the weling stones, u2, ac/dc, will find out what he is doing now coming up at 5:00 p.m. ♪ >> disney parks accounts for one third of revenue. what is your favorite ride? we have five. today's ranx. toyou want more rankings, go bloomberg.com/ranx. make sure you watch jon with bob's interview eiger at 6:00 p.m. eastern on the late edition of "bloomberg west." that is it for "street smart." pimm fox is coming up next. see you tomorrow. ♪ bloomberg tv >> is on >> the market. a let's take a look at what movers we are watching. news coming out after the bell, coca-cola saying it is taking a 10% stake in green mountain coffee. green mountain will developing a cold system to make beverages carbonated and not, developing them in part with coke. i was listening to the colin green mountain says it will come out with other brands for it. coke paid one and a quarter billion dollars for the stake. twitter coming out with its first earnings report and investors are not liking what they are seeing. the numbers, the headline numbers, the company earned money where it was not expected to. those coming out ahead of estimates but digging deeper, analysts not liking what they see, including the growth in the users of twitter. all of this coming out on what was an otherwise not very active day for the s&p 500. it closed little changed, slightly lower as we have vix economic data this morning. as we take a step back, there is a debate about the emerging markets, what effect it will have on the u.s. stocks this year. running the with his thoughts -- joining me with his thoughts is manager.io about $9.5 billion in assets. troy, thanks for coming in. there has been a debate. we heard from lee cooperman today saying em is a concern but u.s. stocks are a good place to be. >> we would echo that sentiment. rising u.s. tides raise all boats. the turmoil clips gdp growth globally, but at the end of the day, equities have the best reward of any asset class, if we will get economic improvement. >> that is the "if, there is not unanimity on that question. some people think gdp growth is not going to be as robust as the imf is forecasting. >> we think this is a 3.5% growth year. the first quarter will take some pain, the numbers will be lower because of the weather events and inventory overstocking. maybe 2.5% in the first quarter but we think that u.s. is on a great growth trajectory. fundamentals have improved. all of the to forget fiscal austerity last year, the majority of it is going away. together, two two .7, the calendar year, plus the austerity that is going to go away, you are into 3, 3 .5 easily. you couple that with an easy fed and equities seem like the best asset class. >> a less easy fed, -- >> less easy but easy. >> what is your best idea right now? fair, we will stay in a wide range, but we think five-15 makes a lot of sense. we think the best strategy right now is still equity. so the bottom line is we do not , there isstrategy ample m&a activity, share big rocks, -- share buybacks, etc. however, if we get an optimistic outcome, they will have upside action. we could do even better. troy, we have to leave it there. thank you for coming in. so good to see you, troy gayeski . i'm julie hyman. ♪ ♪ >> this is "taking stock," for wednesday, february 5, 2014. i am pimm fox. we will focus on seeing things that other people do not, and "time" magazine has called important.ra he is going to be joined by those managing and producing such careers as aerosmith and the rolling stones, steve leber.

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