I am matt miller. I am scarlet fu. Business stories from around the world kicking off with federal and state prosecutors considering charges against Bnp Harry Bob according to a person familiar with the matter. Overt suisse investigated whether it helped american evade taxes. Bnp paribas. Energizer holdings is splitting up into two publicly traded companies. One the unit will include household products. The other will be energizers personalcare business among products will be sure craters razors and hawaiian tropic sunscreen. The biggest utility deal in north america best year. Agreeing to buy Pepsico Holdings for 14 billion 6. 8 billion in cash. The utilityrates that serves the washington, d. C. , area. I want to emphasize the word nuclear is not nuclear. Definitely not nuclear. Going to accompany story we have been following. Twitter, a puzzle for you. Posted firstquarter results that Beat Estimates on the top and bottom line. Investors shrugging it off. Focusing on slowing user growth and punishing the stock. Down almost 12 right now at 37 point 58. Bringing in an analyst at Kelsey Chelsea advisory group. 25 from 30 . Still incredibly robust. Is it therapy people to extrapolate this will mean 20 this quarter in 10 by the end of the year . Using linkedin as a comparison. They had the celebration member growth until recently and reacceleration, the first from the ipo. If you look at twitter, the First Quarter earnings were much like fourthquarter earnings, better than expected revenue on the ibo. And earnings. Audience growth fell short of expectations. That is what is causing the stock to be under pressure today. Why do people care so much about this particular number . They could have one billion users but no one ever longs on. It is really the opposite story for twitter because people blogging on are more engaged, looking at their feed more in doing more on it. Levers, one iso audience growth, 200 55 million active users. The other is monitor novation. Doing this fantastic job. Ayer out monetizing the audience you could argue. The disappointment is if you look at firstquarter you had a academy awards, super bowl, grammys all of the big events that drove engagement but not audience. I think they will continue to make the service easier to use. Audience growth i think will improve over time. Audience is very loyal and engaged. 255 million members. Mammoth to beo be influential . If you want twitter the stock to maximize longterm value, we have a 70 price target predicated on a longterm audience of 800 million. Either going to continue to grow the audience or they will have to do a better job monetizing the audience. Hopefully they can do both. Signed1. 2 billion people up for facebook, are they using it on a regular basis . If using look at the daily active users if you look at the daily active users, that is a strength for them. They do have any people use the service as many as 56 times per week. 70 of the revenue from the u. S. Everyone talks about the growth overseas but monetization is in the medium to high growth are gets. Seeing high growth user growth here in the u. S. Loosely speaking, one quarter of the users is domestic. One quarter of the revenue is international, three quarters invested. International Revenue Growth for twitter is much like global monetization for facebook. Worksk the stock beautifully overtime and working on that with salesforce at a local level and creating salesforce opportunities for advertisers. Lex i want to ask about daniel graf. Recently hiring away from global maps to be ahead of global product. They replaced Michael Sippy who left in january. Could that transition have hurt the company over the quarter . Think often times when you have a growing company like twitter you have the initial Product Development percent and then have someone come in like google. I do not think it slowed Innovation One bit. I think it is making it easier to use. In some instances they will not solve the problem. My parents are on facebook but may never use twitter. Lex a lot of events that cause more invention engagement. What do they do to get engagement up in the Second Quarter . You have the world cup. Activitya lot of around the academy awards, but they consistently get a lot of tweets on sports, music, a lot of important events. They have great opportunities to modernize. Thank you so much. Senior research analyst. Stay right here on Bloomberg Television for the interview with the costello, ceo with dick costolo. A big day for economic news. The u. S. Economy basically stopped in its tracks in the First Quarter, growing as 0. 1 , almost european. Some good news in that data. Consumer spending jumped by three percent. At 2 00 we will find out if janet yellen keeps tapering the bond purchases. We will bring in our economics editor, michael mckee, to break it all down for us. The economy a dead stop and spending more. I fail to see how that is good news. Like it appears weatherrelated. This misspending the biggest all pretty here. Dropped off, contracted actually. Almost no inventory build. Those areas are ripe for a snapback. Good as spending not as it appears. About half of the three percent rise was due to obamacare. War people spending more on health care. That will be a lasting contribution. As the americans feel better about the economy as the weather warms, they will come back to the malls as well. Set up nicely in the Second Quarter. A lot of people going to look past this. We have the jobs report coming up later on this week. That is something janet yellen will look at. Expecting any surprises on the announcement . No news conference, no new orderly forecast. You will not get anything out of it. A real nonevent for the markets. Inple much more interested the jobs report friday. That is why the adp was greeted with a little bit of a yawn. Its cemented the idea that the weather snapback is in place. Better than expected job creation from adp. We will see things improve, probably a strong jobs report. Will starte economy expanding again. I was listening to you guys this morning im as i always do. Tom and john riding talking about whether or not the possibility that we could eventually get a press conference after every meeting. Talking about that a lot. A number was like to do that because they feel it takes their weaponry away. If they wanted to move, it would be very difficult. That is Something Likely coming down the road. We do not get new dots today. Known new quarterly projections. That will make people really unhappy. No new orderly projections. Lex do investors pay as much attention to each eta points as they might a year ago . Important in their every decision . No. When the data comes out, it is a roulette wheel. Traders betting on where the number lands. Longerterm, no. You may see movement on friday morning, the longterm will take time to develop. You will see that more in the bond and currency markets. An inflation had number that did not tell you a lot today. It went up, but not as much as forecast. The question of what they will do next week with the fed and ecb lending, you do not know where the dollars will go. What does that mean for inflation or exports . A lot up in the air right now. The ecb meeting for drama as well. Michael mckee, thank you. Today, noma excitement. No matter how boring, we will still cover it. He sure to tune into Mark Crumpton at 2 00, live coverage of the decision. Probably just a nod. Or a there are new dots press conference after every release, then walltowall coverage. Janet yellen, matt miller wants a press conference after every meeting. Making it Crystal Clear he wants Donald Sterling to sell the l. A. Clippers. We will tell you about potential buyers next. Plus im a ceos who tell employees to take a hike because it is a great way to have a meeting. We are also streaming live on your phone, tablet. Streaming livend through him is on fire tv and can get us on apple tv as well. Tom keene says we are coming soon in smoke signals. The nba send a clear message to the clippers owner yesterday. Time to sell the team. Can the nba really force a sale . Partner at innovative Sports Entertainment and former president of Madison Square garden. Also joined by Cristina Alesci who has been eating, sleeping and drinking this story for the past 20 four hours. Let me start with you, is it possible for the nba . It is on for an american mindset to wrap around the fact that you citizen to private sell an asset just for being a jerk . The nba has a constitution him articles in the constitution. Certainly language that allows them to do Something Like this. Whether or not that says there is dialogue because you are racist i am not sure that is there but that is the issue that will be addressed. I believe they will have 29 votes, three quarter. They believe firmly they can do this through internal and external counsels. Where it goes. Does that mean we should affect Donald Sterling to file a lawsuit and to be a long, drawnout ugly battle . It is possible. It has been reported he does not want to sell. He has been lifted just in his history in the nba is certainly aware of that. He is with counsel now to see if he has a case or he may go quietly into the good night but i doubt it. With sterling and his estranged wife. Himone who baited and taped for this. She must have been a very angry woman. Love half no score in. No scorn. Th what are we looking at as far as possible bidders . It is a really big, important and expensive asset. That is what everyone in the industry says. Sources are saying this could go from anywhere from 600 million billion. It is mindboggling. He bought it for 12 million. Ofionally speaking the value teams are based on three things. One is whether or not the team is in a big market him and obviously l. A. Is not a big market. Media second biggest market in the country. Absolutely. The other thing is whether or not they own the arena. In this case the clippers do not, but the lakers do. That is one big against him as well. One positive thing for the clippers and sterling direction is the fact that other recent trades have been astronomically high. Look at the valuation around the Sacramento Kings was the highest valuation for an nba team. That sold for 335 million. Just a couple of months ago the box went for 500 80 million. 550. Bucks went for so if you look at the clippers, there is a lot of opportunity. There has been under investment into the team. Want to pour more money, there may be more opportunity. We do not know the status of the local television rights. We do not know what they are up for negotiations. No one has mentioned the one thing sports fan consider, the talent. They are good. Having a good year. They are doing better than the lakers. First round of the playoffs. Year attended going out. They had 15 wins and the Bad Television markets and went for 500 a day. The clippers do not own their own building. The owner may want to build their own building to control the revenue stream. There is a whole other dimension , and that is fox owns their television rights. A very competitive market. I think that is up for negotiation and about two years. Magic johnson and who then im own the dodgers, struggling for distribution. Should they own the clippers and take media right, it tremendously hurts box. Another sidebar owing to occur at some particular point is magic and Google Guggenheim are the winners. Speaks to the value of owning a sports team and l. A. Number two market after new york of course. You might, if you are magic giant Magic Johnson be able to think that up with the doctor writes, but as a media mogul want to buy the team . In l. A. . Yes. Not a question. They would absolutely do it. They want to make it the number one franchise for sure. Lakers are down a little bit. They will come back. Ownership good strong that has capital that really wants to invest. This has been named one of the worst franchises in the past 35 years. A tremendous opportunity. It will go for big numbers. A grouping of a media mogul that might be interested. Magic. Heard david griffin. The richest guy in l. A. Apparently. Like he would have to own a stake in the lakers in order to buy the clippers but could very well do that. We have seen other trades happened similarly where people have stakes in other teams and get out of them to own a team of their own. Ditty . Iitty back to was just wondering about that. Always wondering. There were 10 bidders for the dodgers. An extremely competitive auction. Even to this day people say pretty astronomical. What do we think sterling could walk away with . His punishment could net him a billion dollars . Close to it. Bought it for 12. From 800 29 hundred to one billion. Not less than 800 million. A few dollars coming his way, certainly. If the clippers advance in the playoffs, does that change the playoff . A valuable franchise. A good team. It is really going forward. One of the strongest franchises this fight sterling. Anyone coming in now will have a tremendous opportunity. I think it will be a frothy auction. Imagine if they wanted all. Quite a story. They will never eclipse the lakers. They do not have the history the lakers has. Knicks. Ext one thing pumping up the valuation is the international the ability to really extricate value internationally. People are just starting to figure that out now. Aret of the assumptions baked into the valuation. A couple of years ago the opportunity for International Expansion were not being baked into the valuation. That is helping as well. Maybe kim jongun could come by the team. The only person worse than Donald Sterling who could buy the team. Thank you for joining us. Always a pleasure to have you here. Much more coming up. Coming up, hot property. Taking a look at one of the hottest markets in the country for commercial real estate. We will be right back. Approaching 26 minutes on the hour. One stock we are highlighting is ebay, down in trading by 5. 5 after reporting firstquarter net loss. The 3 billion dollar tax charge to repatriate foreign earnings. Leave thes that . Earnings overseas. Apparently they did not take that class as a result, the stock down five percent. Coming up, membership growth that twitter cools off. Talk into the ceo dick costolo. Dont miss that at 11 00. Live from bloomberg headquarters in new york, this with erikmakers schatzker and Stephanie Ruhle. I am matt miller. I am scarlet fu. Eric and stephanie on assignment and will be stuck with us tomorrow, too. Commercial real estate is a hot commodity these days and no better face to witness the booming market than right here in the big apple. We sat down with jonathan pollack, the global head of commercial real estate at which a bank. Duetsche bank. In the new york area we are very involved. 17 million square feet over the next 56 years. We Just Announced a platform for them where they will build all that. We never run out of things to do there. Very act. The number one issue were of commercial mortgagebacked securities. One thing that has helped us get to that place in the markets we have a number of the trophy buildings in manhattan. Madison. What do you think about the hudson yard development. So massive. Some people worried it is too frothy. By the time it is done the Real Estate Market will have crashed. What is interesting is most of the office space has occupiers in them already. Whether it is people biting the space or signing leases ahead of the development. Forcreating that new supply the office outside of the demand for space. There will be a tremendous amount of demand for the retail space because they are creating such critical mass. The two towers for office are 3. 5 million square feet total. A lot of people and creates a lot of demand for retail. Pretty exciting place. What about the Hotel Industry. Already the Hotel Industry getting soft, and that is before buildingsstries are completed. The hotel market has been one of the bestperforming Asset Classes since the crisis. You can see that. It is done extremely well up until now. To market daily rate, occupancy. To a degree, a little bit of softness. Incredibly strong performer. That is the reason you see the companies go public. We still see hotels we are asked to finance are still upward sloping performance. Lex you asked me about development you asked me about that element before, the thing that causes softness is crane development. There has been a lot of hotels, whether it is conversion of office or new development. New york city has added a lot of rooms. It will be interesting to see how it gets absorbed. The rest of america has not seen that kind of development. Where we have development right now is around strong fundamentals. They are building a new transportation center. A lot of development around that activity. Condos. Whether or not they can hit the 5,000 per foot number theyre trying to get. No question demand for 2000 foot type apartments. Are also working on projects in spain where unemployment is almost 50 . The opportunity comes from two places. Of banks are going through liquidation of legacy assets, which creates interesting Investment Opportunities of all kinds. Trying to participate in this action by the government. The other thing the government has done is they have set up a set of reforms that has put spain in a position to outperform the rest of the European Union in the coming years. A very exciting place. A place you can invest. Economic reform is creating what should be a strong economic future. As a bank, can you invest . Banks themselves were building hotels, Office Buildings and resorts. What can you do now . We provide that. Loans from Financial Institutions that