facebook is not google. facebook wins with mobile. and wall street, well they bought american housing. the housing recovery levels out. good morning, everyone. it is "bloomberg surveillance." we are live from our world headquarters in new york. it is thursday, april 20 fourth. i am tom keene. joining me scarlet fu and adam johnson, who bought apple shares at $1.06 20 years ago. he has our morning review. mom bought you apple shares? >> don't own them anymore. >> what a day. in the years of my career come i've never seen this. absolutely amazing. >> you, tom keene, maybe the best comment i have heard about apple. what is in call -- context for us again. billion in 19 months, they delivered a ford motor company back to shareholders. >> incredible. they took the entire market cap

before the year -- >> returned the cash. let's get to a morning break. busy day. >> overnight, german business confidence unexpectedly rose in april signaling optimism. spanish growth, imagine that. spain and growth in the same sentence. accelerating in the first quarter. the prime minister called the ecb to report a recovery. back in the u.s., 8:30, we will get durable goods orders and initial jobless claims. 9:45 we get the bloomberg consumer comfort index. 11:00, kansas city fed manufacturing index. a lot of data and a lot of earnings today. a total of 86 companies report today. eli lilly, gm, caterpillar before the bell. after the bell, amazon, microsoft. >> this is the single business day. 64 companies in the s&p itself. about 13% of the index. >> let me do a data check right now. equities, bonds, currencies, commodities. i have got a great mac chart.

futures up 7, much of that due to the apple enthusiasm. nymex crude goes nowhere, 101.70. euro-dollar$1.3824. the yen strengthens. i will not say the president has much to do with that. that is pre-split divided by seven. that is yesterday's quote. we will open up about that. here we are to be quiet. this is the move index. things to jeff rosenberg of blackrock for wisdom on this. this is the volatility of the yield curve of bonds from two years out to 30 years. here is the quiet of last decade, and we're right back down there to the decade and a good feeling of where we were in 2006, 2007. a quiet, complacent market whether equities or bonds. day yesterdayic afternoon. here is our front page this morning with scarlet fu. >> nothing quite about apple's

results yesterday. apple rewarding its shareholders , boosting share buyback by $30 billion, raising given by 8% and splitting its stock 7 from 1. >> where is the stock right now? 7%, but it is down 26% from a tie in 2012, so it has been a slow slog, and a lot of investors may have bowed out of it and look for growth. >> we will talk through this about all of "bloomberg surveillance," the blue-chip, this has been be fema for many theme on the -- been a for many guests on the show. you do that by actions, not words. >> tim cook proved that apple can still grow, so it is maturing but still growing. >> operationally it looked ok, too. that is something that is very encouraging. our second front-page story is a story that is a first on

bloomberg. general electric on the burden of making its biggest acquisition ever. we are talking about $13 billion. according to people familiar with the situation, ge is and alstom. buy a company that builds trans am power plants. it would give ge control of high eed train technology. >> we talk a lot about the recovery in europe being a couple of years behind the recovery here, maybe here is a similar error low, warren buffett making a bet on the u.s. several years ago, now he is making a bet on europe. french company with several thousand employees in the u.s. >> and he got it at a pretty good price because the market has been dropping in the last couple of years. story, laterpage on today, the fda will announce proposed regulations on e-cigarettes, so be careful -- >> why don't we show the video

of me smoking these cigarettes? >> did you get a headache? >> it is different from a cigarette. it is right back here by my bald spot. >> that is where the matrix plugs then, right? >> the bloomberg chip is back here, i do not need a security that some of the microchip is right here. >> i had mine the plastic surgeried up. thise fda is looking into $3 billion industry that is basically operating under no rules, so some of the proposed regulations that people are thinking would come into effect would be banning of e-cigarette sales to people under the age of 18. >> in our meeting this morning, did someone say it were on an airplane as somebody lit one up? >> yes, because there are no rules against using e-cigarettes or vaping. whatcan go on and on about was so real and what was so phony. >> i walked into a party that was sponsored, a media event, that was sponsored by one of the

vaping cigarettes, so there were 15 people gaping. it's not like b.o. it was the nastiest smell. >> there is no smoke -- >> yeah, it is vapor. >> anyway, those proposed regulations are coming out later today. >> a very good. effect.the apple how will silicon valley adapt the culture of california? the door to ahown cfo, apple generated $30 million in cash, and they have 90 days, one billionerated dollars. david kirkpatrick is author of the "facebook effect." at $.75.pple shares >> you know, journalists, we try to be stupid about investing by policy. >> what did tim cook teach your silicon valley yesterday? ization ---chip a

the company has become the bedrock of global technology quality, so i think if the quality is established so deeply in the product, in effect they are doing the same thing to her company. when you get to that scale, you just cannot skyrocket up and growth anymore. >> when i look to your book, you have heard me rave about mr. kirkpatrick's book "facebook effect," there is an effort to get a zuckerberg ecosystem. apple has that ecosystem in spades. is that the message that amazon, facebook, and microsoft need to find their own ecosystem? >> next week, facebook has this f8 event. it is their fourth or fifth event primarily for developers, and they will put a renewed focus on their ecosystem and their platform, which is a really big deal for facebook. facebook does have a huge ecosystem, by the way. each time you go to website and we register with facebook, which we all do everyday, that is using their platform.

>> are you going to speak to mr. zuckerberg? >> i hope to. i have not got an an appointment. >> that would be great. facebook, if you are watching this morning, we would like to see mr. or patrick speak to mr. zuckerberg -- >> and then come on "surveillance" and tell all of us. >> of course i will. facebook has 1.8 billion monthly users. there are a lot of large numbers here. even as it leaves mobile concerns behind in the dust, it cannot keep growing its user base at this rate. >> at this rate, maybe not, but in fact they have some other tools at their disposal. for example, instagram, which they announced yesterday now has 200 million active users. it is something often said. facebook is losing a little bit of it cachet among american teenagers, but in fact they're going to instagram it'nstead,

which also owns. >> is it feasible that instagram can take over other facebook assets? >> it is possible. maybe in the united states that is a possibility. it is not something they are terribly worried about because they are hedged. instagram is taking over for twitter in many respects. 117 followers on twitter. i take pictures of bowties. it is amazing. the jury is still out. facebook clearly prove they can go to mobile. now it is 59%, 60% of users are going on mobile. prove itwill facebook can actually monetize all of those mobile users? look at these statistics of mobile advertising, they are skyrocketing there. i think they are steadily proving they have because capability of doing a possibly of anybody. one of the phrases that sheryl sandberg use on the earnings call yesterday was the first targeted marketing

platform in the world at scale. that is truly possible for them because this is something people continually underappreciated about facebook. the knowledge they have about their users is unparalleled. no other company in history that is shown ads to people has ever known as much about the people they show ads to. that is huge. >> david kirkpatrick with us. i am instagramming right now. courtney, i am sorry, i'm not listening to you in the enteral room. save me. company news -- >> we will start with ibm. we will add technology to his health unit. this is as the pentagon prepares to open bidding for $11 billion health records contract. watson is best known for beating humans on the game show "jeopardy." a top personhired for its health team. the telecom company trolled by billionaire carlos slim wants to buy the rest of an audrey and

firm. america mobile may pay as much as $2 billion to buy a minority investors. trying to expand beyond latin america. and a judge for heineken reporting a 37% drop in last quarter. sales were down less than three bring percent come up markets including russia and poland are proving challenging. heineken also reporting currency losses. when was the last of you had a heineken? >> actually i have a sixpack in my fridge. >> 2:00 a.m.? >> i've been having trouble sleeping, and since the alarm goes off at 3:30, i needed to knock myself out. the twitter question of the day -- we are all talking about apple, what a big deal, splitting the stock, 7 for 1. as tim cook finally proven himself as apple's ceo? sweet us @bsurveillance. we will be right back. ♪

>> good morning, everyone. "bloomberg surveillance." coming up on bloomberg television, this is fascinating, howard marks of oak tree capital thehe -- oaktree capital on word of the market, look for that at 10:00 this morning on "market makers." this is "bloomberg surveillance." with me scarlet fu and adam johnson. history made yesterday, scarlet, on apple. just amazing. >> absolutely, tim cook finally leaving carl icahn. he had been pushing for return of cash, and that is what tim cook delivered. increased by back by $30 billion to $90 billion. nhis is a capital retur

program to return $130 billion. >> there is what, one susie $5 billion on the bookes -- there is white, $165 billion on the books right now? quick something like that. paul kedrosky with a financial apple is pushing every button and turning every dial they have. this is the kind of stuff you do when you do not have any new products to talk about. right now that is where apple is out. it is not have a new product to timeabout, so it is buying by giving investors what they want. what is interesting is by doing all of this at once, the buyback, the stock split, the dividend increase, it is loading a quarter completely and for a tech company, that is a pretty strong statement according to paul kedrosky.draw >> david kirkpatrick, i see the

buzz. >> so many expectations have been inserted into apple that if you are slightly disappointed, you blame him for everything. my feeling is it is an extraordinary company. it is not really their fault that investors have been so confused about them for so long. i don't have any doubt they will continue to impress on product because they are the world's leading technology products company bar none. so it is not really worry me. and i think they are really doing surprisingly well. >> people want to dock them down so bad. >> of the "new york times" lead is apple is starting to slow a little. i will read it to you. can i read this? on my iphone. i have it on my iphone. >> ok -- >> remarkable growth script is starting to -- >> are you kidding me? brian chin wrote that. brian, i love you, but i just don't get it. >> carl icahn has been pushing

tim cook to do something. "i agree completely with apple's increased by back and extremely pleased with results. believe we will also be happy when we see new products." that is carl tweeting last night. >> and brian blair has said this is a stock that has been largely ignored by institutional investors by the last couple of months. so what these moves are are essentially moves to shift that sentiment as they head into the second half product launches. >> you and i were in the car on the way to a charity event going back and forth on this. i said, david, which is not said here, which mr. cook brought up, is little sidecar things like 66% of revenue is international. when you do a pro forma on india or china, that is a remarkable -- up 55%. iphone sales >> a lot of people have asked the -- one of the going to go after low-price product markets. which facebook is focusing entirely on. they may not need to.

it was some point certainly have that option, and that is a gigantic growth opportunity. >> and here is another point about all that money being earned abroad, that is not paying u.s. taxes. that lowers the tax rate. >> they know they will make it up in volume some point. >> you live on airplanes. describe for me who in china buys apple products. i do not think it is 300 people in beijing. tono, almost everybody seems -- i checked into a hotel, this is a hotel registration, and she somehow saw that i worked -- i forget what i was doing at the time, but it was not that long ago, and the first thing she asked me is -- what is going to be in the new iphone? that is not at all uncommon. people in china are as obsessed with iphone products as we are. >> none of this is in the zeitgeist, scarlet. >> in terms of cumulative sales come over half a billion iphones sold by apple overall.

what i found interested in the corner was -- what i find interesting in the quarter was this has tim cook fingerprint all over it. ernie nine point eight percent, above 39%, for the first time since september 2012. >> one of the things about carl icahn tweeting "i wonder what will happen with the new probably is he has heard more about what the new products are then anybody, so that may mean something. >> let the knowledge and the fact there was a black mark -- ipad sales way below. >> i think quick on the conference call when into that and into the "wall street journal" as well. greatl holland gave a recitative of apple at $430 a share. right, we will be keeping an i on apple shares throughout the morning. meantime, be sure to check out the newest edition of "bloomberg businessweek."

it is the success issue. it hits newsstands and your tablets where you can read on the go. this is "bloomberg surveillance." on bloomberg television, streaming on your tablet, your phone, and bloomberg.com. ♪

>> good morning, everyone. "bloomberg surveillance." keene.m scarlet fu and adam johnson with me this morning. let's get to top headlines. the u.s.ent obama says is prepared to impose more sanctions on russia. he is in japan to talk to prime an assertion so operate. he says if russia does not follow through with an agreement over the ukraine, then u.s. and its allies will follow through with more sanctions. and south korea meanwhile, investigators are trying to

transits weret shipping more cargo than it should have. shipping cargo may have been sink.aused the ferry to the fda already regulates tobacco and now plans to extend its reach to e-cigarettes. the new rules include a ban on sales to anyone under 18 him a plus a cigarette makers would have to provide an ingredient list. the roles would also cover cigars and tobacco for pipes and hookahs. those are your top headlines. >> this is an interesting must read. adam johnson has been noise on a quiet street. >> around the corner from where our very own pimm fox lives, we are talking about demolishing the museum for folk art. static,cture is not least of all urban architecture,

which jostles daily with its environment and the multifarious human to work and play in that apartment. one story from the living city, a building loses its lifeblood." they are talking about taking down this 82-foot-high iconic façade and move it to queens. >> why queens? >> because there is room for it at ps1. he says it is taxidermy, not preservation. >> but the metropolitan museum on 5th avenue here has the united states or whatever there. >> in the american wing. >> in the "surveillance" wing, there is a temple of "surveillance." [laughter] >> david kirkpatrick, you started off as a graphic person ore you became an author -- >> my wife is a painter, a painter. >> are we confusing with taxidermy? >> i do not think it is a black

and white question, but the row question is whether the museum of modern art need to create such an empire that and knocks down a museum that is beautiful right next to it, so it can be yet more gigantic. what i think is weird as you have the hearst building where they took this old shell and build a giant tower over a, which is an interesting tower, but -- backdrop, thehe backdrop to mr. kirkpatrick, that is under threat, too, with all those skyscrapers. >> that is what it comes down to. we will be back with more on including how" amazon prime members to get hbo shows. ♪