Twitter Takes Greater Control of Its Data

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April 21 (Bloomberg) -- Bloomberg News Contributing Editor Nick Thompson and Bloomberg’s Jon Erlichman report on what’s ahead for Twitter, mobile payments through Square, and Kraft investing in tech. They speak on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Goldman -- gold is interesting.

Its value depends on other people's opinion.

You have an income stream you can value.

Gold has no value other than what people want to pay for it.

If you feel you're good at guessing what other people will pay for something, go ahead and buy gold.

If you don't think you have a skillet that, history has shown stocks were a better inflation hedge than gold.

Would you agree with some strategies?

Like buying a mining company?

Gold etf is the same as buying gold bullion on.

There is no difference.

A mining company, if you are a skilled analyst, i can see some ways to make money there.

Pure gold is just a bet on other people's opinion.

A bad idea.

A good idea is to buy emerging markets.

Julie has been looking into that.

There are a lot of people who have been getting back into emerging markets.

If you look at the index for the year to date, it had a terrible first quarter.

Over concerns about ukraine.

We saw a lot of selling in that particular etf.

In april we saw a boost.

Investors were coming back into emerging markets.

They view them is relatively cheap if you look at some of the other global markets.

Barrens was pointing out some of the pitfalls.

This fund turns over every 13 days.

There is a high level of skittishness about geopolitical elements and the affect they have on these emerging markets.

Buy emerging markets so long as you have an iron stomach.

And iron stomach and don't buy the index.

The index is verily -- very heavily weighted in samsung and companies that make minerals all over the world.

They are commodity companies or global companies.

You want to buy funds that focus on smaller companies that are tied to the domestic economy.

That is where you're going to get more consumer and industrial exposure.

That is the rising power of the middle class.

That is a long-term theme in emerging markets.

This is much more so than trying to figure out where iron ore is going to go.

There are a couple of small companies.

I would look at active management because it is a very inefficient asset class.

Pena percent -- pena percent can add value over that index.

Back home in the u.s., we are watching the earnings season.

Mike, you been looking at earnings.

At the moment, we have been seeing very little change in the way earnings breakdown.

There is a tepid bottom-line growth.

Companies are still taking the money and putting it into shareholders as opposed to going into their employees and labor at this point.

That is forecast to change.

We will see sales growth rising much more significantly as the mess -- next couple of quarters go on.

Let change your strategy?

That would be wonderful if we see it.

That is been the achilles' heel of recovering corporate earnings.

That has been wonderful for the past three or four years of the recovery.

Eventually, you need topline growth to keep earnings growth going.

Topline growth, i would love to see it go up.

Pat, thank you so much.

Coming up, rumors of a square sail after a tough year for the mobile payment company.

Which tech giant might be given up square?

Captain america is a his knee for -- hero for disney over the weekend.

We are a few minutes in the session, stay "in the loop." ? here are the talk -- top tech stories.

The today show is expanding to radio.

They will simulcast the complete show on sirius satellite radio beginning in june.

They hope the move will help them expand to people who are on the way to work but can't watch tv.

Captain america came to the rescue for disney.

They had sales of $27 million over the weekend.

That gave many people an extra day to sit around and go to the movie theater.

3300 social networking site have been deleted and a breakdown -- crackdown on internet pornography.

We have all the latest in tech and media on "bloomberg west." square has been plowing through money.

In 2013, they lost $100 million.

They are looking for -- twitter has acquired a data service.

For more, i want to welcome back jon erlichman and nick thompson.

Net, let's start with you.

Was this the promise that did not quite deliver?

We don't know yet.

Everybody has invested in this.

A lot of people are getting money.

Square is still worth billions of dollars.

We saw this bad news coming out of square.

They are losing money faster than we thought.

They are thinking about being bought, which is not a good sign.

Click goal -- it is a good sign if people want to buy square.

If square is saying who wants to bias, that is a different thing.

They have also almost gone belly up.

There been some bad times coming from the sector qu.

The numbers tell us this is a race within margin business right now.

It may change.

They are trying not to charge small businesses a lot of money for processing payments.

They have spent a lot of money hiring people.

They are broadening into brick and mortar to tell people to get rid of a cash register and just use their system and ipad.

Doing that costs money to roll out.

Their hope is long-term.

They can introduce more services.

You can keep better tabs on how people are spending.

They could generate more revenue that way.

In the meantime, they are losing money.

And now we all know about it.

You need to get users.

Square has been able to accept zero gross margins in order to get users.

With a business like twitter, the cloud gets cheaper to use, that is ok.

And a business for you have to build things and work into a complex payment system and work with players that are arty out there, you can run out of money.

Square is taking this into a big messy industry.

It may yet work.

It may work out to be massively successful.

That is why they need to be sold to a google.

They have money.

Yes, they have money.

They have users.

Square has a lot of businesses who work with it, but they don't have a ton of users.

Google has google wallet.

It is a good pairing.

Google would pay lots of money.

It seems like square might be willing to take their price right now.

Google could have conversation so they have a better presence in stores.

That is been more challenging than paypal in rolling out into a lot of cook -- locations.

They are powerful.

Jack dorsey should call a friend at facebook.

They should say that facebook is thinking of buying it.

What about twitter?

You say this is an interesting acquisition.

They hired an outside company to analyze data.

They opened up a twitter firehose.

All the partners started to make a lot of money.

Then twitter decided to buy one of the partners.

Couldn't they have just done themselves from the beginning?

They allowed access to all of the twitter stream of all people of all time.

They open up to companies who pay them and sell the data to other people.

That is clearly a very valuable business and a lot of people want access.

There is a lot you can get out of it.

It was about $70 million that they got from this kind of stuff.

That is not a ton.

There is an open area for them to say look what else we can do.

There is a lot of conversation inside twitter about the business story ahead.

One story is how you keep people engaged.

If you're not a celebrity or a journalist, once someone starts an account, how do you keep them there all the time?

That way the advertisers are still interested long-term.

What you are talking about, let's license everything that is on there and make some money that way.

I am with you on that.

I know that when i came back from asia, people said to me that they don't use twitter.

Twitter is not present overseas at all.

This is a very entrusting thing.

New york media, everybody is on twitter.

It seems like everything is coming from twitter.

It is not a ton of people coming into twitter.

They are coming in from facebook.

It is a valuable platform and it is a great news feed.

I love it.

It is important to companies.

There are barriers to entry and they stay on because it can be confusing.

They need to change that and figure out if they're going to make it.

They bought one of the companies that they contracted with to give them their data.

I have not seen a good answer to that.

I'm sure there are saying they will continue to license it.

It was also getting data from foursquare and linkedin other companies.

Or those rivals to twitter?

Secondly, the other companies that had access to the twitter firehose is owned by apple.

Will twitter cut them off?

What will happen?

I come back to that question, what do they do with the data?

Is it useful to the company or advertisers?

We were talking about mobile payments.

Say you are square.

Say you want to generate some kind of cool stats board on everything that people were saying about your business on twitter.

You want to measure this intangible world of what people think about your brand.

This is the kind of stuff you can work off to do that.

Them acquiring one of the players that has worked with him closely allows them to go to that next step of handling it themselves and growing up the business.

This is a sign that they feel this can get larger as twitter gets larger.

That is a story about kraft.

They hired a company.

They are going to help them analyze photos that are being shared about their products.

There is tons of information about kraft products all over social media.

They can't find it just by putting the word craft into a search engine.

They want somebody who go through and say look there is somebody who saying -- are saying they had a lovely lunch.

Maybe that person likes kraft.

I had a lovely lunch of mac & cheese.

I said that just the other day.

They can find influential people who are saying positive things.

If they are saying negative things, they can learn to interact with them.

Here are 20 new boxes.

We are sorry you had a problem with the last mac & cheese.

Thank you so much.

Jon erlichman, thank you.

The beijing auto show is getting underway.

We will tell you how the german automaker is faring in china.

? they're still trying to recover bodies from the ferry in south korea.

Full flag and is signaling they will be, china's biggest foreign automaker.

Il and musk says tessa will start building electric cars in china.

Tesla is about to start selling the model s sedan in china.

That does it for us on "in the loop." tomorrow we will be in china and we will have an interview with the ceo of aereo.

? it is time to go on the market.

I am julie hyman.

30 minutes into the trading day, we have arise of u.s. stocks.

People are watching earnings and a potential big deal among the gold miners.

That is on the agenda this morning.

If you look in the treasury market, we still have some concerns over the situation in ukraine.

We are not seen a big gain.

There is a little bit of buying and yields coming down.

Wall street banks are definitely feeling the bond trading blues.

Trading is down and revenues are dropping.

It is getting riskier to gamble on the bond markets.

Jenny to explain what is going on is lisa a brahma what's. 11 the -- people have been predicting for a long time that yields will come down.

It hasn't been happening.

This is that the trajectory that people were wanting.

You have a bunch of issues.

You have the trading volume coming down a lot.

Even as the volume of debt increases dramatically.

You have that yields have come down.

They're not getting as much margin.

You also have this third element which is how do they position their inventory, their own books that they use to make markets.

If they get caught on the side of the trade that they are long, if yields rise a lot, they could be stuck with a bunch of losses.

You've seen the biggest wall street dealers pull back their inventories.

They were net bearish on the month.

It seemed like this was the right that.

They were saying that yields were going to rise 3.4% on average.

It could be as high as four percent.

It doesn't make much to be long on treasuries.

Bonds rallied.

They are stuck on the other side saying look at this.

We are short.

This is going to be a drag on our returns.

They have already been low.

The issue is that these inventories used to act as hedges against their holdings of riskier debt.

It was not as imperative that they get the exact timing right.

They can balance the portfolio more.

They had more flexibility.

Their holdings on some level they could fine tune across their holdings.

They don't have that ability now.

You have the fed cutting back on quantitative easing.

What does that throw into the equation?

You would think on one hand it is negative.

Yields are rising.

They stand to lose.

They have been waiting for this to happen.

It is not good or bad.

When yields rise, that means you can earn a bigger profit between

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


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