Puerto Rico Credit Rating Cut to Junk

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Feb. 4 (Bloomberg) –- On today’s “The Roundup,” Trish Regan, Adam Johnson, Julie Hyman, Matt Miller and Cristina Alesci wrap up the day’s top market stories on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

A new ceo.

The guy has been running be cloud for graham.

-- program.

He is replacing steve ballmer.

Bill gates.

Aside as chairman of the board.

This is a video that was circulated.

He has the right background to lead this company in this era.

There is an opportunity in the cloud.

The groups that he has working with, he has really met the needs of our customers.

He had better help out.

The stock has been in the same place since 1998. it was bare 2007. $36. whether he is wearing the suit or the huddy -- hodie.odie.

That stands for innovation.

Bill gates has done a fantastic job with the move.

He is putting himself in a steve jobs position.

He says he will work there when they wait.

A third of his time will be devoted to microsoft.

Now della -- nadella is free to do whatever he wants.

He can take some parts of the company and get rid of them.

Not everything.

It is like to parent on the board over your shoulder.

His job is on the line if he does something to upset former or gave -- steve ballmer or bill gates.

He will be the driving force.

He will move people aside so this guy can go ahead and make changes.

He will make some room between bill gates.

Is the german word for buffers.

I had actually forgotten the english word.

He will provide a buffer.

Microsoft earnings were great last quarter.

You can say what you will about the stock, but if you step back and look at it, it is doing very well.

Because of the enterprise in the cloud business, and that is where nadella comes from.

I is that deal of expansion in market share?

It has become like ge.

A big old-fashioned kind of stock the company.

Perhaps this is going to bring that juice that it needs to get some of the innovation and growth.

Can he function as an outsider?

Can he bring a freshness that an outsider would bring as an insider.

That is like gm.

Can mary bring that?

Often eat here in detroit because we do not ask it is easier in detroit.

You can make a ton of money and that is what microsoft has been doing.

That is not a puerto rico has been doing.

They make a lot less money than they spend.

Their credit rating was cut to junk by the rating agencies.

General obligations has been cut to a db class -- bb+. they are negative watch.

What do you do?

Could puerto rico default?

I am not sure it is even legal as a territory of the united states of america.

When we come to the rescue?

If they or a territory?

It has never happened.

Exit is a gray zone.

I was just texting back and forth with hans.

He said that this is where it gets ugly.

Part of the issue is that a lot of mutual funds have to get out.

Now that it is junk, they are not allowed by their charters to hold it all saw -- hold it.

That creates additional pressure.

The united states will still be there, right?

They are picking up $.25 on the dollar.

You cannot default.

What does that say?

If they stay or a territory default, it does not say anything good.

If your charter says you have to lose it, you cannot hang on in the hopes that the u.s. will come into a bailout.

Life is good news for haunts.

It is not good news in your 401(k). there are winners and losers in every market.

If you shopped at target over the holiday season, you might be a loser.

Target is apologizing for those data breaches.

The cfo john mulligan said that he is deeply sorry for data breaches last year.

We will learn from this incident and as a result, we hope to make target and our industry more secure for consumers in the future.

The senate banking committee is calling for retailers to participate in a system about data breaches.

Here's my issue of all this.

Target could've easily been avoided, i don't know how easily.

Target and neiman marcus, they did not come out until customers until started to be reported in the press.

Why didn't they come out and tell everybody right away?

Target heavy data breaches several years ago and it took several years to come until customers.

There is no law or regulation forcing them to do this.

It is the bank that would have to tell you, not the retailers.

The banks should tell you the retailer.

You would think the consumer protection bureau -- you would think.

I think elizabeth warren would be slapping somebody.

This is a problem that would never happen in little old backwards, foreign language-speaking europe.

For years they have had a system called chip and pin.

All of their credit cards have a little microchip.

You have to slide it into a machine that would cost target $200 per machine to upgrade.

It would nullify all of these security issues.

U.s. regulators don't care.

Regulators are talking about these early warning notifications.

They are also talking about steady up a standard for security measures.

Have you set up a standard when the iraqis constantly evolving?

There is a process -- if the right is -- this threa ist constantly involving?

There is a process.

Bitcoin.

We run a risk that our bitcoin accounts may be hacked.

We won the risk that someone is out there mining more bitcoins.

Or putting them out there to be mine.

How do you secure that?

All the bitcoin to mind and then there is deflation of the client.

-- in bitcoin.

From bitcoin to a more traditional industry.

Time is preparing for job cuts as they spin off from time warner.

David geithner, tim's brother, is preparing to leave.

This will be tougher to pull off.

If you think about it, it follows with news corp.

Did.

They spun off there publishing arm.

Now time warner is doing the same thing.

The problem is that they are spinning off time magazine when news corp.

Spun off its publishing arm it was debt-free.

That will create a complication.

That is what you will see job cuts.

You know what is fascinating about time warner?

Aol time warner came together in the late 1990's. they got rid of aol.

And then they got into cable.

Now you have time warner, which is cable.

Now they are spinning out the old legacy.

This is one of the worst deals.

This is how bankers make money.

The bill demong and tear them down.

-- build them up and tear them down.

I know you are excited for this.

Oh yeah.

"house of cards" is coming out soon.

They are raising money to make more original shows.

It is a value proposition going forward.

Lord knows that there are no stable movies or shows to watch a netflix.

Searching for movies on netflix, but i like house of cards.

And "orange is the new black" is good.

Glad to season three of "house of cards" is coming.

Is this them introspectively thinking about -- we are a channel with none of our own content.

The content makers and the audience, how much value is there to be the middleman?

There has up to this point, -- they have a ton of content.

Everything they do is a home run.

With the exception of "lille hammer," which was good, but not a hit.

Why do they do so well in the content?

Life is edgy.

You look at these storylines, and that is some creative stuff.

They tell the story in a way that leave it all out.

The way it works when you talk about broadcast networks, success breeds success.

If you are at amc and you have madmen, you are able to attract other creative types.

If you have a "lillehammer," the creative types know that there is a commitment.

Kevin spacey talked about this a lot.

They do not have to follow the traditional model of the pilot that explains the whole story in one episode.

And then you have cliffhangers.

You can sit down and watch all 13 episodes.

There are new ways to do television.

Who doesn't love that?

I love it.

Good to see you guys.

Coming up, is it safe to buy?

This text has been automatically generated. It may not be 100% accurate.

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