Puerto rico is in a bind. They cannot declare bankruptcy. Jay leno says good night. The host stepped down after 20 years and more than 40,000 jokes. All of them were ok, i guess. Who did he make the most fun of . Welcome to market makers. He made the most fun of george bush. Remember, there is a Huge Development going on. A Cayman Islands attracting financials giants while the country is tumbling. I am looking to jimmy fallon. So true. So true. Something is wrong with twitter. Twitter is taking. The stock is down 20 after an Earnings Report that left investors stunned. Well explain why with cory johnson. What is the big concern with tter right now . Well well, look, this is about a stock and not about a company. Bloomberg,arlier on the short cells are keeping the stock from falling further. Companygoing on in the is very interesting. We see limited growth there and the user growth is not that strong. In fact, all of the User Engagement numbers came off week. Just the user growth alone was less than six percent. It is week. 5. 9 growth, you know, think about all the publicity that twitter got in the last quarter in the United States alone. You had growth of less than two percent. That is disconcerting for a business that is smaller than other companies, like facebook. Twitter might be a competitor. It looks like they may be a competitor to linkedin. Have they reached a saturation point . We dot this shows is that not know how many. Using twitter. Toy made significant changes the way the timeline views are seen. The added pictures and video. You would think that that would make it more mainstream. The hardcore twitter fanatics may have decided that they had enough it did not enjoy the changes. Attraction ofl twitter is that it forces to limit you to 140 characters and brevity that not everybody appreciates. You can see that in the results reported yesterday. You can see the revenue per use. It is so low that they reported in the 1000s. Revenues for a thousand timelines, because the number is so tiny , revenue per use . I am a user. Where is the revenue . What am i buying . Ads. E marketer is buying stephanie spends inordinate amounts of money on ridiculous things and marketers want to get stuff in front of people to sell that. It is a legitimate model that works. I think that we see that there are new ways to monetize that and the problem is that it is not growing as fast as it might. For one second, i read to the financials and the transcript of the Conference Call. I listen to yesterday afternoon. Worries, hes talking about the slope of the growth curve. You know that everybody at twitter hates the look of that chart. They seem to be struggling with ways to build User Engagement. There are people who like twitter. I love twitter and you love twitter. They have 200 40 million users. How do they get new users to show up and like it . The news users the new users seem to be bewildered or disinterested. When you listen to the Conference Call, he sounded very demonstrative and certain and strong in the town. The words coming out of his mouth were not positive. Some of the references i got disaster. Call was, you do not come out of a Conference Call in good shape when you refuse to answer the first question about user growth. The numbers were not good in the analysts were hoping to see explosive growth in the quarter. The stock phenomenon is limited. Some people thought they had to own it because this could be the next big growth thing. They found out that it was not the big growth thing and it is still a Young Company that has a great future in billions of dollars in the bank thanks to a big ipl. They have a lot of growth issues to deal with. Argument to be made that they could have been overbought. In the year, equities were ripping and everybody was chasing it. Could you make the argument that people wanted to own anything they could and it didnt have to do a twitters fundamentals . I agree with that. Look at what happened afterwards. There was an appetite to buy this thing. I think it was a wall street phenomenon and not a business phenomenon. Felt likemanagers they had a lot of facebook and had to have a little twitter. You own some twitter and short some linkedin. It is a market phenomenon and not a business phenomenon. Clean and we did not have an issue with zynga. They changed their accounting rules as they went to the ipo to make it look like they had more profit. Or, like groupon. The numbers were clean. They were what they were. After the ipo, a lot of people on wall street and beyond attempted to project growth that was not there. Isthe stock is down 20 and safety safe to say that the honeymoon with investor is over for the moment. We will continue the conversation next hour. Editor,our Bloomberg Cory johnson. Talked about the importance of twitter and how valuable of a company it was. Everybody who said that to me was not a twitter user. He made a valuable point. The revenue per user is growing and twitter has a cute monetization opportunity, like facebook. Users, you50 million can still bring a lot more money out of people like you and me. This is not over. Threeyou like coffee . Mountain coffee is having a better morning. Cocacola is buying a 10 stake in the company that makes the keurig cup. I know david i heard einhorn is following the story. Getting more money out of people. It is not enough to buy hot beverages from the machine. They want you to get the cold beverages from them and make your own soda, your own juice, what have you, through a new kind of machine. A cold machine that will be out in 2015. Cocacola will be the products available. This is huge for green mountain. They say that what makes the machine will i need a second question mark this is what is unclear. One analyst said the initially, it would be a second machine and eventually, you have one well have a hot side and a cold side. You will have both things and it will be one machine. There is a saturation point. Both coming out of the same nozzle . A i was hoping you are not soda drinker. I am not a soda pop drinker. It is great for green mountain. Sure. That is the unanimous approach to this. They get the cocacola product there and it is one of the biggest brands in the world. They leave the door open for other brands on the platform. Winwin situation. It is reminiscent of other deals i cocacola has made. They initially by a small stake in a smaller company, like honest t . The reason were seeing a pop is because some are considering the possibility. Sodae seeing a plunge in stream. Now, there is competition. The soda stream shares are up sharply. There are some analysts cvs keeps on the track of not selling any vices, we will have to have cocacola at home. The notes that i have seen say it is a small possibility. You are not getting the precision from soda stream that you might get. You have more flexibility when you make soda through a soda stream. I like flexibility. When i use my soda stream, i do not like it. I do not know how to make coke. That is why you have to stick with the selfserve. It is an on fun drink. Seltzer is the best. The latest. When we come back, well talk about another. Kman is getting support. We are speaking to the lego empire gets bigger. A new space for legos. We are streaming on your smart phone. Welcome back. Ally withn has a new herbalife. Thatup supports the claim herbalife is a pyramid scheme. Executives is the director. He is with us now. Ryan, why this and why now . We learned about this a long time ago. Why are you getting involved at this point. It has come to our attention 60 80 where between are latino and we did not know that before. And we heardtested that. We were very alarmed. You look at the compensation and 80 of those distributors make absolutely nothing. Only one half of one percent make a living wage stop that is disconcerting to us and we want to help protect those latinos. Now that we have, we need to make sure that these latinos are protected. Did you learn about this . Did you get this information from mr. Acumen . We did not. We got this from herbalife. They told us that safety percent of their distributors are spanish. They made statements that with englishspeaking latinos, that is 83 in the United States and an incredible penetration. Way over the number of latinos in the country. The statement of gross compensation came from herbalife. We are not paying attention to what bill ackman is doing. We are focusing on what is happening to the latino distributors. They are making nothing. 80 of them are making nothing. 99. 5 of them are getting less than the living wage. This is probably the biggest scam out there. Said that youre not paying any attention to what bill ackman is doing. As your organization had contact with bill ackman or any of his employees . We have had contact with consultants of bill ackman and they have approached us. They have hired every latino between the two of them in washington, d. C. What does that mean . Everybody needs to be clear. Contact between you, anybody in your organization, and bill ackman, himself . Absolutely not. No direct contact no direct contact with herbalife management . I have had direct contact with herbalife management. You may know this, they have provided us a statement that says a number of things. You say your organization has been making illinformed public declarations and they would welcome an opportunity to educate your group. Im curious to know how you would respond to the notion that and thatllinformed you have referred you have refused the offer to educate you. Out declarations are coming from them. It is their statistics that we are using. Would like to get that information from them. I have asked them for half a dozen times for that information. They have refused to disclose that. I think that is the most aportant question that potential entrepreneur can ask this company before taking advantage of the Business Opportunity. They do not disclose this information and that is a very revealing. You are not. You are not. You are not. Sorry. You are not saying that herbalife is a pyramid screen pyramid scheme. Our main issue is that latinos are being recruited into a fraudulent Business Opportunity that does not really exist in a vast majority of them lose money and, not only that, the money that they lose funds herbalifes offense. Profits. Latinos in the United States, most of them are undocumented and are of low income. They are providing a revenue stream for this company because the majorityes are of the sales that this company is making. Sells tells us that 73 of the distributors do not want to sell, they are consumers. We find that fraudulent. On the second question, with three times, we have gone to the conferences and met with them. What did you think of them . Interested in this company when i first met with them. I realized that these people are not telling the truth and thats they are trying and they are a opportunityte for latinos. Most involve the company will lose money. So many of them are hispanic. I thought it was dishonest and they kept i kept asking how many people are in the downline. They told me three levels. According to the literature, you can have unlimited levels in your downline. Who did you meet that you thought was a liar question mark liar . G i met fleming. Officials. Other i met the pr person. I do not have all the names off of the top of my head. I have met quite a few. They have said that have not gone to meet with them. I flew to l. A. To meet with them. Their dogosed to do and pony show and all the Different Things that they wanted me to see. See the nutrition and time,ore we are out of what are you asking the government to do . We have not talked about that. We are asking the government to execute the law. The federal trade commission operates off of section five of the federal trade Commission Act and it says that if you have a company that is promoting a fraudulent Business Opportunity and omitting facts, like what is the average compensation for a distributor, if that is the case and, that results in a material action by consumers or distributors, they have to enforce the law. That is exactly what we heard from the ftc yesterday. If you do that, you bend the people intou trick a Business Opportunity that does not exist, a law must be enforced. We are asking them to do what the mandate is. And show thatw when somebody promotes a Business Opportunity, it is a real one and they are not being defrauded. We have to leave it there. Thanko much of the you so much for joining us. Theexecutive director of league of latin american citizens. Last tonightlenos show. Can you believe it . We are going to look. That is coming your way. Is 26 minutes after the hour and Bloomberg Television is on the market. We are taking a look at where stocks are right now. We are at a session high. The s p 500 is up. The Dow Jones Industrial is gaining 133 points. Before we head into tomorrows january jobs report from the government. The consensus is for a gain of 180,000 jobs for the month of january. We are focused on earnings and were two thirds of the way through earning season. We are looking at shares of gm, americas largest carmaker and they missed because of oversee pressure. Is losing 1. 6 in the time frame. The restructuring went into the prophet and they lost money in asia. We will be back on the market in 30 minutes. Market makers is up next when we return. 70 billion of debt and an Unemployment Rate of more than 15 . It is the mess called puerto rico. Is theremics editor all day and he is trying to get to the bottom of it. What should investors care about , lets put it that way. What you have for us . This is a story of easy money. Advantages for companies that would go to puerto rico. And had another tax law they had earnings taxfree. Manufacturing flooded into puerto rico. Sold ine top 20 drugs the United States were made in puerto rico. That let the government owe on a big spending binge and they kept increasing the size of the government sector. Aey hired more people and did lot more spending. To do all that, they borrowed. We saw the economy go downhill and some of the tax breaks were taken away they could not pay their bills and they borrowed again. There is a pile of debt they have right now. And the country is at a point where people are saying, with Interest Rates where they are, it is very hard for them. Government need really do. The governor said it is impossible for them to default. It does not matter. If you are bankrupt, you are bankrupt. Theyre finally walking the walk and they are making significant budget cuts. The problem is that the economy is in the hole. Revenue and you have an exodus of Puerto Ricans moving to the United States because they cannot get jobs. They have a very high crime right crime rate. The government intensified their borrowing and the overall that is about 3 billion. They have to start cutting and they are doing it. They are not doing it fast is to blame here. Is it the government that enabled the sale of the debt or the investors . It is all three. Some of these situations are what all Companies Find themselves in the. You have a situation and people try to take advantage of it and not develop or diversify their economy. You think it would be huge there. It is only seven10 of the economy. They started to pull back. Privatization going to be the answer . Drama around it. It became the right idea. It seems like every time there is a new administration, they are revamping the game plan. Privatization is one of the answers and they did so off the airport. That contributed airports that contributed revenue to the country. There is not infrastructure that you can do that with. Politically difficult. They need to cut the size of the government payroll. When you do not have jobs available, that is the next step. He says he can bring down the heget deficit next year and is not promising any and any layoffs. They are selling off for folios and you have people. Uying up hotels at this point what happened to native capital . There is not a lot of native capital. Cleaned their Balance Sheets and do not hold a lot of greek and that. You can pick up on 60 or 70 cents on the dollar. If so, you will probably get a reasonable recovery on that. After the s p cut their Credit Rating this week, 18 down and people feel that we know that the bond is rated by the price. You can go when. There is talk of getting through this year and the deficit. Ands at a very high price that may happen. People are talking about a 10 coupon on that. That is an admission of failure. That, the rating have some hope. Just some of the big its in puerto rico. If there is a default, it is a widespread problem. Thank you. He gave us the real deal. Only come back, youve heard of legos and the amusement park. What about a lego movie . We will explain. Im going. Welcome back. The movie opens this weekend. I will be there. Lego has seen enormous growth. We have a look back at the companys eight decade history. Lego is the most popular name in the world. Beenons of pieces have made since the first were made in denmark. This is made the company the second largest company. Family, thed by the founder and the creator of the brand name. It means lay well in danish. After carving wooden planes and buses, he bought the first plastic machine in denmark. Made multicolor bricks that snap together. The design is an enduring success. Any lego brick made after 1958 will work with pieces sold today. After suffering a major loss in 1998, the company bounceback by adultsng to girls and who are fans of legos. The prophet was better than 2007111. There were more lego people than real people on earth. Movie begins this weekend and brings many characters in the lego universe to life. It has taken the company 82 years to get the spotlight themselves. Doeseputation like lego not happen overnight. It is painstakingly builds. Built. Brick by brick. Who doesnt love legos . Have been watching bootleg youtube lego videos for the last six years. Came tohow this movie pass . This is a culmination of 15 years of dabbling in hollywood. There is a celebrity unive