As well as a look ahead to jcpenneys results after the bell. She is looking at the entire troubled state of retailing today. Here in the studio for the next hour, my guest house, restructuring guru who oversaw Hostess Brands and is now heading a wide range of companies that he will give his take on turning around retailers to overhauling taxes to hiking minimum wage. First, to you on this data breach and the impact on target. It definitely had an impact on target. Not only did it take charge to fix the data breach, the bridge of credit card information at the comedy, but in addition, a depressed traffic, because people, after hearing about the data breach, did not necessarily want to shop at target. The company is a saying in the Statement Today that it is not sure what the future effects are going to be. It is not sure how long this is going to last. All of this said, the companys earnings did top profits estimates. It seems like that is. Share this morning. In addition to the fact that fullyear earnings forecast leaves room to perhaps at least meet analyst estimates. The shares were higher earlier. Now they are giving up a little bit. Mention that this is the first year where target canada results should be fully integrated into the u. S. Results. They wont be broken out separately. That business has been a little bit challenge. A lot of retailers in the u. S. Have had issues and a target is among them. Jcpenneys earnings after the bell. Within a struggling retail industry, is struggling perhaps the most. There are questions about the company the companys cash position. Even the trends are improving, it is not clear if they are improving enough to allow the retailer to keep its cash position whole until the end of the year and in that healthy position. That is the question that investors are asking here. That is what they will be scrutinizing today, not only the earnings numbers, not only the comp numbers, but the Liquidity Position of the company. We should get another one today. Greg tickyo bring in is, as i mentioned, a restructuring expert. A cleaner, and corporate america, is who greg is. I want to pull this up. It shows Short Interest between jcpenney and also sears. Above 40 . The highest among any of the other Department Store chains. No surprise, given what is happening. No surprise. Retailers it is the most difficult sector to try to do a turnaround in. It takes a lot of capital. But i think the other question retailers always have is whether you are relevant, and if you ask a question regarding jcpenney or sears holdings, neither of them are relevant. With ify come up they went away, would anybody care . Would it matter to the consumers . Factly, i dont think it would frankly, i dont think it would. That is the riddle. If you were restructuring jcpenney, you say they should file for bankruptcy . Absolutely. I give them a lot of credit for trying to do it on court, as they say. What they went through, and the way that the leadership disenfranchised the Customer Base, gives them a high hurdle that they would be better off filing what could they do in the bankruptcy that they cant do now . A couple of things. You have leases, you own property. You would have to go to through their asset base and figure out what size, what parts of the country, where do you think they have a cogent strategy to rebuild or hang onto a Customer Base . Asn you do a turnaround, most people think that the limited resource is cash. It is not. The limited resources always the time and energy of the Management Team and their focus. When i come into a situation, it is always about what we are focusing on and what can we move to the side, because you have limited time and energy for the Management Team to actually drive change and drive improvement. It gives them that opportunity, in a calmer environment. Cash is a factor in that. You can always get cash. You can leverage something, ight . If there is a cogent strategy you are able to get cash. It is costly. But you can do it. The mob might lend you money. But when you are meandering around a bunch of strategies and a lost Customer Base, it is very difficult. If you are doing restructuring with jcpenney or another company, is there a point beyond which you just say, ok, it is not worth salvaging here, were just going to shut it all down . Where is the Tipping Point echo where is the Tipping Point . You know, jcpenney has artie crusted, but that is a qualitative thing you have to go through. Thed to consider what is in best interest of stakeholders. When you are dealing with the company that is burning through slot of cash, the board fiduciary duty is to debtors im sorry, to creditors, as opposed to just shareholders. That is sort of the switch. In the restructuring world, once you get into the point the shareholders dont enter as much, obviously. They rank second once you get into trouble. Most people i know that are speculating in jcpenney, they are not speculating in the stock, they are speculating in the debt. That should tell you something. Interesting. I dont want to put you on the but people say, ok, lets see about what are the turnaround strategies for these retailers. Blackmun was trying hard to get bill ackman was trying hard to get them to change their ways, to get them to spin off their real estate and spin off into a reit. Maybe for some retailers it is a way to generate cash. All that is a page out of Eddie Lamperts book. He was the first guy in any order of magnitude to monetizing capitalize on real estate links monetize and capitalize on real estate holdings. That doesnt mean that you are viable as a retailer. You are seeing that play out in spades, and you saw that with ackman and jcpenney. That will strategy of going from their Customer Base to young and doing it like that would be the same as if cadillac 10 years ago had said we would stop making big cars. We will make little cars. Greg, i wonder if lampert himself should take a page out playbook, so to speak. Sears has formed a separate Real Estate Company. They have a Real Estate Company within sears but they also have a separate one still under the sears umbrella. It has been a little bit of talk that maybe that should be spun out into a reit. Does that make sense for sears, if not jcpenney . It could. For me i am more of an operational turnaround guy. Im digging about the core business. Those things can be good to do from the Financial Balance Sheet standpoint and the overall carl icahn standpoint. Getting your finances in shape to wring value to the stock. That is fine. I tend to focus more on what is the core business doing. If the core business is dying, youve got a problem. Clearly in those 2 cases, it is. We will stay with you with much more for the hour. Julie, thank you so much pretty senior marcus responded julie hyman. Thank you so much. Senior markets correspondent julie hyman. Money,and shaking this the Seattle Seahawks cornerback russell wilson. He led the seahawks to the super bowl victory, the dominating victory this month. Now he is setting his sights a little higher. Olson talked about his future with charlie rose. Wilson talked about his future with charlie rose. My dream right now and what i want to do when day is be the owner of a football or bespoke in. I would love to do that football or Baseball Team could i would love to do that, i would love to run a franchise the way to do that is to plan ahead. You have to have a plan, you have to understand your purpose every day. There is a purpose to what i do. Faking like a businessman. You can watch all of trolley rose thinking like a businessman. You can watch all of charlie roses interview with him at 8 00 and 10 00 eastern time. Consumer reports is touting the electric model s is the best electric car on the road. Elon musk is turning his focus to the electric suv, model x. That model has been plagued by delays and wont be delivered now until 2015. Musk told me exclusively why. The hottest thing is achieving great form and functionality. It is easy to give up on one of those 2. Damn hard tod make an suv in particular that is beautiful and yet incredibly functional at the same time. Note an entirely different , moving and shaking his house ways and means chairman dave camp, who is proposing a Major Overhaul to the tax code. Anded cut the top corporate individual tax return 30 he wants to cut the top corporate and individual tax rates to the five percent. To 35 . Walltes in todays street journal that if the loopholes are close, mickens should get the benefits of lower tax rates and it could create up to 2 million jobs over the next 10 years. According to the michigan promise man, the legislation he will be releasing the today would achieve 3 specific things. Number one, it would vilify tax rates which ash simplify tax rates for children for education. It would get rid of special interest handouts. It would also eliminate the carried interest tax benefit, which is been a lightning rod in d. C. Greg, you, i know, as a former ceo, have quite a lot of opinions about the tax rate and how it is affecting corporate america. What do you think would be the biggest change in the tax code that would help create jobs . Wow. Job creation is, to me, something that has to come from a lack of regulation. The issue that we have had for years now is overregulation. When you see topics like minimum wage, use it the Obama White House working on this, that i want to regulate this, i want to force this, those are not helpful. The government does not have a lot of things that it runs that run well. Almost nothing you can point to the you wouldnt say lets privatize that, and it would work good from the job creation standpoint, the less relations and hurdles you have, particularly on Small Business but on taxes, what would it be . What reforms would help the business . Can consent of incentivizes, corporations and Small Businesses as dave camp mentioned in his oped, the Corporate Tax rate is 39 , the highest in decades. He is absolutely right. If your purpose is to create jobs and get the economy moving, and what we have heard of the last number five years or so is are job one. We are not moving there. We have much more on. His greg rayburn is staying with me throughout the hour. We have more on blackberrys restructuring and what the company could really get for selling its messenger service. S geteer maker crafty. We will look at the business of brew. Billionaire john paulson thats more on struggling puerto rico with his latest investment in a huge resort property. We are just Getting Started on this wednesday. Blackberry chairman and Ceo John Chen pledged to keep customers and shareholders happy. He says he will bring back favorite phone features like the physical keyboard that you love phonee buttons and models. He admits that he has to consider selling by kerry or spinning off some union selling a blackberry or spinning off some units. Running a public company, anything to help our shoulders i have to take a serious look at to help our shareholders i have to take a serious look at. Today we need to build up that base. The point is, i think the is tied to our best, and a price book is, that is going to be huge enterprise focus, that is going to be huge but until we get to the point where we showcase that potential, it is too early to think about getting to 19 billion. Telecomt to bring in a analyst at Bloomberg Industries but also with us, our guest host for the hour, greg rayburn, also worked in telecom as the chief restructuring officer for world, during its own for worldcom during its own bankruptcy. You have been closely following what john chen is doing. He did a great job with turnaround on another company. You see those same elements at blackberry . I really do, betty. One thing i love about john chen is that he has that rare talent of really looking below the hood to look at all the assets. Previous management at blackberry look at the company as a device company. The reality is that they have a great Global Network of servers, they have the best mobile security in the business, they have blackberry messenger. John chen is looking at all those assets and the potential to monetize any or all of them. What do you think of him, greg . John chen . John chen is a star. He is exceptionally good at what he does. The one thing he is doing that i really love is he is bear hugging his enterprise group. For me, if you go back to what i talked about early come in a turnaround you have got to tighten your focus to your core what you are good at. What you are really good at. Blackberry shouldve done that 3 years ago. They didnt. They tried to go towards consumers toif you take it 2 years deliver a product that is going to be forth to samsung and apple and everybody else, you are wasting your time. The enterprise side of this business is very strong. That all makes sense to me. Im not so sure on the device side and im really not sure what value they can get out of you canting, because except lick from whatsapp and facebook you really cant. Why . Facebooks acquisition of whatsapp was purely defensive and it could be dilutive to their talk at what they are buying is rapid growth. To their stock. But they are buying is rapid growth. It was purely defensive from their own of view. You cant look at whatsapp and said that per user, blackberry can get 3. 6 billion. Do haveys to have valuation of blackberry messenger. Greg, it is ah different user base. If you look at blackberry and blackberry messenger, it is mostly professionals that are using it, they are using it for collaboration, theyre using it to leverage the productivity. To sort ofpeals more the average consumer. John, but do you expect, that eventually he is going to spin it off . You know, he indicated in a bloomberg interview yesterday that is certainly a possibility. His plans are to scale up that business but they have 85 million subscribers. He needs to get that larger. I think he is going to do that by developing some functionality user at, again, that core that is looking to blackberry messenger for collaboration and enhance productivity. John, thanks so much for joining us. Restructuring specialist greg rayburn staying with me throughout the hour. Coming up, he is not your typical ac advisor. Hailing a taxi our guest gives us the inside track on the booming business of hailing a taxi with your phone. State in the loop. You are watching in the loop live on Bloomberg Television and streaming on your phone. I am betty liu. Bloomberg television is on the markets. Equity futures showing a slightly, slightly higher open. It is the individual stocks that have really moved, but not the overall market. We are on the markets again in 30 minutes. Here is a look at our Bloomberg Top headlines. Record demand for new commercial jets drove a 21 jump in profit in airbus. The european plane maker predicts that further growth in 2014 as it increases reduction 20 jet didtselling a3 he delivered a record 626 planes and is targeting a similar number this year. Wes fourthquarter earnings are in line with analyst estimates but its full forecast fell short. The housing recovery rich people to invest in home renovation. Fiveoard also approved a Million Dollars share buyback. Credit suisse help american plants had as much as 10 billion in assets from the irs, according to a Senate Committee report released yesterday. Ceo ray dugan will testify on saying that today, top executives did not help american and please break tax laws. The firm is facing investigation by the sec over accounting deals. Staying in washington, the Incoming NationalEconomic Council director is a man of many combatants. What he is is a man of many compliments. What he is not is an economist in the traditional sense but does he have what it takes to be the president s top Economic Advisor . What should we know about jeff zients . Thethink of jeff zients as nec head for the whatsapp generation. He is somebody who made his money building 2 consultancies in his 30s. Invests indie who the washington, d. C. Restaurant scene. He brought Major League Baseball to washington, d. C. Oh, and he also save obamacare. Noting that he had Nelson Mandela and his wedding in the early 1990s. Implementer,s an somebody who can ask could an implement the president s agenda. Gene sperling, outgoing director, known as an ids that could jeff zients is not necessary known as an ids guy. Ideas guy. Jeff zients is not necessarily like that. Tim geithner says that jeff zients is somebody who does not just talk about stuff, he gets stuff done. Julianna, any failures on his resume . You really have to dig kind of deep, betty. As i mentioned, he did bring Major League Baseball to washington, d. C. He helped convince the Major League Baseball that even though off i95, there was enough room to have the nationals, or what would become the nationals, the montreal expos, here in the nations capital. His Investor Group made a bid to own the team but lost to that bit but it went to a Single Family instead of an Investor Group. I talked to steve case for this story, also, and he said it is probably better that way. He is serving this country and is in this post as nec director instead of owning a major league Baseball Team. What is the role of the nec director . The role is somebody who can take disparate views and bring them together and flesh out ideas and present them to the pres