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 im going to watch this on cbs, because i dont know what channel nfl networks is. I dont even know if i have it. Im not sure, either, but im 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 dont have their clothing. The luggage was lost in new york. It includes their blades. They will try to borrow somebody elses 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 secondbiggest 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 estatendollar 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 dont 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 doesnt, 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, arent 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 jayz 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 ive 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 territorys 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 hes got a lot of experience there as well. And for years, everybody wanted to buy the debt, because it is triple taxfree. 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. Youve 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 dont 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, arent those like those who would be hiding the puerto rican debt as well . Youve got a point. I mean the puerto rican debt the puertoeyeing rican debt as well. Youve 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, were going to talk about mexico versus other emerging markets. We are back with our cohosts for the hour. Estate aeal onetime 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 dont 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 emergingmarket, 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 emergingmarket 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 recategorization 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 countrys economic and quality of life. Hes now privatizing the oil industry, for one. And number two, hes 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 theres 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 dont 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 dont 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, isnt 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 fourwheeldrive 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, its cycling. Capital and money in peoples 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 persons 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 80s and in im 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 im 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 overretailed. 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 im 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 bloomingdales and get something nice, or go to tj and get something cheap. But i wont 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, im 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 jobss 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 marshalls, giving you great value, or like Companies Like forever 21 or h m that are giving you value. Kids and those in their 20s 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 g