. i am adam johnson. a big news for you. one buffet, and the cubbies. in motors, a heavy-duty quarter. higher-priced pickups. they take away the sting of the 7 million recalls. it is not just gm today. we have 64 companies in the s&p 500 all reporting today. we will give you the rundown. properties, though the in empire. of the give you a view

empire state building that you have never seen before, trust me. first, we are kicking it off with what everyone is talking about. two big headlines in tech. we will start with the world's biggest company. >> apple reporting a huge quarter, its best ever. second quarter revenue was more than $45 billion, up by one percent, profit up seven percent , and 43.7 million iphones were sold in the quarter, a new record. the company boosted a share .uyback program >> i do not know where to begin. investors and analysts have been griping about apple's growing business. carl icahn would not shut up about the company giving buyback to investors. here it is delivering on both fronts. >> there was a lot in the report tonight.

there is a lot on allocation side about dividends we were not expecting. the phone number was most impressive. that is the core of their business. they use that as the tip of the spear to get their whole ecosystem out. that number was substantially better than what the street was thinking. the growth rate of the emerging what stood out. lastly, the ipad number was a disappointment. >> exactly. it cannot all be sunshine and roses. the ipod sales dropped 50%, the steepest on record. sales.counted for 19% of been a challenge. >> apple has shown it can sell iphones and china and other

markets. it is making boatloads of cash. there is one more piece of the apple pie. >> we have not seen new product categories. we have been waiting for new innovations that have not come from apple. we continue that from what we hear from people hiring away employees. >> the post steve jobs apple has plenty of work ahead. right now is go time. >> is a question of what the comedy can do between the month of -- the month of june and november. fall with see in the the iphone six. what is the wearable we all believe is coming at go -- coming? it ishas a question -- largely under owned across the investor base.

are buying shares, rising the most in two ears. apple is not the only tech stock making headlines. >> facebook reported first-quarter profit and revenue that blue plastic -- blew past st analyst estimates. past theok is blowing estimates in the latest quarter. it is curious. on the conference call yesterday, executives said the spending will increase for the rest of the year and the initiatives like the photo sharing application instagram and video advertising, not necessarily going to contribute to revenue. remember facebook is huge. class here is a big number that shocked me. monthly has 1.3 billion active users. we kind of forget how massive facebook is. there are a lot of large numbers. even as it leaves mobile

concerns in the dust, it cannot keep growing at this rate. >> at this rate, maybe not, but they have other tools at their disposal. instagram has 200 million active users. it is often said facebook is losing a little bit of its cachet among american teenagers, but they are going to instagram instead, which it also owns. but instagram is taking over for twitter in many respects. class facebook is adding another tool to its jampacked toolbox. it has bought a mobile fitness app that lets people gather data from smartphones to determine whether users are walking, running, or doing other physical activities. facebook has not said how much it actually paid.

gm is on the move as well, even with all the recalls. we will hear from the cfo coming up next in motors. later on property, the empire state building as you have never seen it before. the owner will give us a private tour. volcanoes are getting active. three in peru have been's doing -- been spewing lava gas. ♪

" onhis is "lunch money

boomer television. we are also streaming everywhere. i am adam johnson. in today passes investor, we have got one of the world's is greatest, warren buffett. every year, the chairman auction offs a lunch for the foundation. we caught up to him. the first topic, coca-cola. berkshire hathaway owns 9.1%. shareholders improve a controversial executive compensation program. it pays coke manages shares of the company. buffett abstain from voting, even though he is against it. >> i voted enthusiastically for the directors and i am certainly enthusiastic. being the ceo, i do not think you can have a better one. i thought the plan was excessive in that it talked about 500 million shares and using them up over for four years. my view is that it was excessive.

i could never vote against coca-cola. planld not vote for the either. it is just the way i feel about the people there. is david his disciples winter, also against the plan. winters wanted buffett to be more vocal in fighting it and here's why he was not there it >> i was not interested in taking up that campaign. i do not disagree with him and doing it. you've been a shareholder a long time, he, like me, feels it is an excessive plan. i would not have waged a campaign against him. i was not going to work on his behalf to age one. class he said he thought there was a conflict because you have criticized other companies that have rewarded employees with stock options. about it herecal in coca-cola. class i have not named companies. i have written about

compensation generally comment sensibly, over 30 or so years. i never said i was against options, absolutely, but here, i just thought, and i voted for coca-cola plants in the past, but i thought it was excessive here. >> this brings us to activist investing. a lot of it is happening now. good or bad? >> i do not see anything wrong with speaking out about a company's plan. i think he is a long-term shareholder of coca-cola and he has a big addition in it and he did not like the plan and decided to go public with that fact. it is perfectly proper to do it. i would not do it myself, but i do not see anything wrong with doing that. >> next, concerns of a tech double. investors like david einhorn say the tech will pop and 1 -- buffett says he will not go to

silicon valley. thet is not remotely like mobile that existed 15 years ago or whatever it was. we are not seeing total craziness or anything of the sort, but we are certainly seeing some companies go public at high valuations and private transactions. but i do not know those companies well. it is not just something you can go out with any piece of junk and call it.com and sell it at a huge price. we are not there. but i do not find myself tempted to buy anything coming out. >> and then there is housing. mr. buffett has been optimistic about housing and still is and thinks government should play a role. >> in the 30 year, fixed-rate mortgages is good for the american public area you will need public dissipation in some way to bring the cost down.

think the american public will do way better with some kind of guaranteed instrument in the picture. i think that will be in the picture. whether you start an entirely new company and let freddie and fannie run often have a new company that in turn has government guarantee, perhaps ith riot the dissipation, and know they're are talking about having the private market set the price to some degree, but have the government have -- be the insurer of some resort, maybe the private sector would take some percent of the risk. >> do you think they have aided in the company? no, freddie and fannie's stock rallying, i do not think it has got anything to do with the housing recovery. i think housing recovery was built into low level of housing inrts following the crash 2008 for a couple of years. household formation eventually

just a man's house -- housing. just demands housing. >> all right. it is earnings season. a roundup coming up in company. in motors, bmw taking on tesla with the new hybrid ford's car. we will take it for a little test drive. before we go to break, ronald mcdonald is getting a makeover for social media. it says it's famous spokes clown will take an active role in social media for the first time .sing #ronaldmcdonald here is the before and here is the after. do you see much of a difference? nor could we. ♪

>> this is lunch money on bloomberg television, also streaming live on every device imaginable. we are going global, from trucks in america to electric cars in china. first, the truck. estimates in the latest quarter, thanks to higher prices for pickup trucks, that made up for the cost of recalling 7 million vehicles. car guy, matt miller and cfo chuck stephens. earnings were up $5 million year-over-year with margins just under eight percent. growth in china, earnings were up just over nine percent year-over-year. continued improvement in europe. when we look at our expectations and performance in q1, really broad-based improvement across the business. >> one of the things we saw a miss on was revenue. as analystss high

were looking for. they were looking at about 37 points, $9 billion. why is that? are you taking higher margins and focusing on higher margins at the cost of topline growth? >> there were a couple of impasse. we had $8 million of foreign exchange impact revenue based on some of the weakening current seas, russia and south america and other emergency -- emerging markets. we indicated in january for our consolidated international operations, we're in the process of transitioning key products, especially in the middle east. that impacted revenue as well. in our core markets, north america and europe, we are happy with our revenue and overall performance in the market. question is betting big in the market with plans to invest 12 million -- $12 billion in three

years. consolidated international operations, we're in the process of transitioning key products, especiallythat will increase cay 65%. gm is not the only automaker looking to grow in china. elon musk hand delivered keys to buyers of his new model s. the billionaire founder says sales inch -- in china could top sales in the u.s. by even next year. >> we see pretty strong demand right now. demand than we could fulfill this year. long-term, we will have hundreds of service centers in china. my instructions to the team in china are to try to build those as soon as possible. we are going to bill them at a rapid rate. >> admittedly, it has not been in entirely warm welcome. class i am really disappointed. >> ok, sorry. >> the woman claimed to be a buyer of the 120,000 model s.

she was upset with delivery delays from factories in california and is not the only one. >> we have delayed some of the deliveries in china, just for a few months, in order to ensure that when they get their car, they will have a great experience. some were a bit upset about that. i met with them and they apologize. it is not as though we want them to be unhappy. our motivation is coming very much from a place of wanting them to be happy and not unhappy. >> yes. the happy. people want their cars. tesla has competition on this front. bmw is rolling out its hybrid and doing it in china. stephen engle had an opportunity to take it for a spin. version ofthe test bmw's hybrid i-8 sports car but is not quite ready for the press. she needs a bath first.

♪ class where are the girls? ♪ now, she is ready for my road test. >> the engine has not kicked in yet. electric engine is driving. you can switch to the all caps version by moving it into sport. look at this now. it is already, telling us we are burning gas. then, there we go. that is the hybrid engine kicking in. it obviously has a head start in the china market compared to tesla, whether that gives germans in the bmw i-8 an advantage over the mile as has yet to be seen.

let's check out the hybrid i-8 from bmw. testis the electric vehicle. not really the production commercial model just yet. look at this. carbon fiber body, so it is fairly light. is the electric engine and this is the charging station. now, we can see fairly straightforward, just plug and play. raging zaidi is something to be considered in beijing because we do not have these in high-rise owings. you will have to have a long extension cord up to your 30th floor apartment. the good thing is it is a hybrid . electric engine in the front and a twin turbo three cylinder peppy engine in the back. a petrol engine that will get you, they say, 0-60 in 4.5 seconds. >> it is a sports car. when you put it into his hero a

mission mode, you can drive 35 kilometers or so. as soon as the battery starts to run down, the engine will automatically start to recharge it and, of course, give you a lot of additional power. >> it may be environmentally friendly but not too economically family. we want to show both sides of the story. ♪ welcome to the china him -- the china market. if we are indeed in a bubble here, you will likely have some competition at opposite ends of the electrified spectrum. bloomberg, beijing. with a tope is right speed of under 35 miles an hour. it is not quite as much fun to drive as a bmw or a tesla. we have talked gm, apple, and facebook.

we have earnings as well as long -- as well as dozens for you. for handlingdvice success from she kilo neil. o'neal.ille ♪ minutes past the hour. that means bloomberg tv is on the markets. let's look at where stocks are trading today. we're up again by and large. the s&p and the nasdaq especially are gaining ground on the back of better than estimated tech earnings from the -- the likes of apple. make this theill second largest company in the industry. we are also watching under armour. shares of the company have dropped the most in two years.

in on a streaks and has been on a streak, with at least 20% increase for the past 16 quarters straight. we will have more on the markets in 30 minutes. moore is next. more is next. ♪

>> this is "lunch money." today's moving picture where the video is the story. under scrutiny for chemical weapons. activists and residents are reporting the government is using chlorine gas for months. arerity council members calling for an investigation. assad's government denies the allegations. president obama was fêted.

the promise that the u.s. would protect the east china sea islands. a yankees pitcher has been suspended. he was thrown from wednesday's game against boston after an official spotted a substance glistening under the stadium lights. he said he had trouble gripping the ball and did not want to hit anyone. how noble. earningsy, we have an banana. -- bonanza. it is 13% of the index. they are all out of the numbers today, caterpillar, 3m, amazon, verizon, dunkin' donuts thomas shall i go on? let's just start with cat. qwest earnings beat analyst estimates. caterpillar also boosted its four-year forecast. indication of the global

economy, especially in the emerging markets. qwest the stock market does well. the cat led the dow in trading. then there was ups. carol massar lays out the numbers for us. is focusingverybody on, the company laid out is forecast for the year. in january, they're saying it should be at the low end of the forecast here there is disappointment, coming on the heels of fedex. we saw that last month. mixed results from the company, instruct -- strong in terms of international. daily volume up about eight percent. scott davis specifically sang him a call it was due to unusually harsh weather. about half of their service days were disrupted because of what is going on with the weather. i talked to ups during the

quarter. those folks are staying at their , definitely a big factor. job up about 20%. is not as much of a problem for southwest airlines. posted record fourth-quarter profits, toppling -- topping analyst estimates. gary kelly.ceo here's how he did it. -- >>we will do our best we will do our best. virtually flat fuel prices for the past 12 months. very well for us going forward. that has been the main challenge we have had, especially over the past 10 or 15 years, rising energy costs and as the transportation company, if

energy prices are moderate, we .ill try real hard qwest you have to get more revenue out of each cap -- each passenger you fly. qwest it was an all-time record low factor, 79%. one of the opportunities for us is to fill empty seats and then also, with products so that customers have the choice to purchase. we are growing our revenues without having to depend on significant fare increases. the skies to skyscrapers, we will take you inside the empire state building for a tour that money cannot buy. that is coming up in property. and how to succeed like shaq. basketballrmer player is making more money now than he did on the court. we will tell you how.

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money." s "lunch we are streaming virtually everywhere. i am adam johnson. today in property, we are in an empire state of mind. the empire state building grace the new york city skyline since 193131. a lot of years and a lot of money made it what it is today. the empire state realty trust manages the building. qwest the empire state going has always been the icon on the new york city skyline. back in 2006, we took over the program and the inside was not

so good. we do a lot of work in the empire state rebuilding program to make the outside image reflect the inside so when we brought people in, it was not just the view, which was impressive, but the entire building. >> it is one of the world posses most famous skyscrapers. the empire state building is a staple of the new york city skyline. and a building it -- in transition. a ceo has plowed a half billion dollars into energy improvement. loaded up the state-of-the-art enhancement all to make this a high-tech hub for companies like a clothing distributor. -- >> i said, if you will not come in at least look, i will not give you another square foot of many of

my buildings. they came and looked and felt love. qwest they are your largest tenant here? our largest throughout the portfolio. we have cody, linkedin, -- >> it is what most people never see that is transforming this new york city landmark. qwest limited all the insulation as far as the energy efficiency, all the elevators, what we d is we do not have to do all those things. original, 1931 steam station. >> tell me what this is about. aire need to bring fresh into the building. it comes into the building from its wayd floor, works

under the building, and supplies fresh air to a couple underground levels and the stores that have lower levels in the buildings. qwest above the wind tunnel, construction is underway for a white tablecloth restaurant and a 14,500 square-foot gym exclusively for tenants. >> we have got free weights across the wall, stretching here. the concept here is your typically him -- typical employee that has an hour for lunch. at the jamb, 50 minutes to grab food and get we willthe desk area now go to the 103rd floor, actually the ip treatment. the life has what been like after the ipo. qwest is wonderful. life is more simple. the biggest lesson learned was that you could take on anything

anyone else would tell you is nearly impossible, and if you plan, you have patience and stamina. i feel i have probably gotten 80 e-mails on my blackberry since we have been walking around and i need to get to them. qwest you can watch the full interview with tony and our full coverage inside the empire state building. let's go to bloomberg.com or our award-winning tablet app. coming up, remember the russia today anchor who resigned on air. her device for what to expect if you are thinking about quitting your job in a big and public way as she did. by the way, how about some advice for handling ets? we are talking about pro basketball legend shaquille o'neal. here is one more for you. phelps, the most

decorated olympian of all time is hungry for more. the olympic medalists retired at the ripe age of 27 after the olympics in 2012. 20 months later, he is coming back. 100 meter butterfly at the grand prix today. his first race will be fun and games. ♪

>> this is "lunch money" him limber television. we are live on almost every device imaginable. the secret of success. when she quit her job at russia today, this was during a law that -- a live broadcast. what can you expect when you quit your job in a public way the way she did? >> 3, 2, 1. my name is lynn wall. i am a journalist. notoriety.me

the government that whitewashes the actions of. i am proud to be an american and believe in disseminating the truth. that is why after this newscast, i am resigning. >> if you witness this when youg, that is should stand up. i did it on the air very publicly. i have no regrets here at i'm proud of what i said and what i did. beould not recommend may causing that much of a stir. i do not think it is applicable to all people. in most normal circumstances, if you have a better opportunity, you quit. quitting is like a breakup. sometimes, it is easier than others. sometimes, it is more civil than others. sometimes, it is a more passionate breakup.

i think when you make that decision, you have got to remember you made that decision for a reason. you've got to move on. >> moving on and in some cases moving up. shaquille o'neal making more money now than when he was playing basketball. he spent the day with a seven foot, one foot businessman to get his insight. >> 40, 45, that is the only [indiscernible] i need. i will always have monetary ambitions. ♪ you cannot mess with perfection,

but you can moisturize it. i am 41-year-old and i have tried almost every product in america. i am not familiar with the product, i will not endorse it. in arizona in college. for $.99, you can get a lot of liquor. we made a deal with arizona. it was a no-brainer. an affordable line. big guys, we only have a couple of places to go. i want to be able to go in there and buy something off the rack. ♪ this is every day. ♪ you have got to have the shack pack, baby.

smaller thanle you. they're the one smaller to hire people [indiscernible] ♪ >> they're great. >> i love frosted flakes but the only call i am getting is wheaties but i never really ate wheaties. when you have money, a lot of people say hey. these buses right here will be the next bus. do your due diligence. still in or are we going green now? a lot of guys put at them -- look at the monetary action. >> you can read more about sha

q's empire in bloomberg businessweek. in obama, this is -- >> good job. >> robot. it is a pleasure to meet you. ♪

are coming up on 56 past the hour, which means bloomberg television is on the markets. i am julie hyman. let's take a look at where stocks are trading right now. about halfway through the session. the dow just barely, but overall, stocks are getting a lift, especially technology

earnings, apple, facebook, reporting numbers ahead of estimates. at the markets today, we are seeing a little bit of fluctuation, not huge moves. right now, yields are moving slightly higher. the 10 year yield is going up 2.71%. askedorning, betty liu the chief investment officer for value equities where he sees more value, in stocks or bonds. >> there is tremendous uncertainty today about what future economic growth will look like. that is tied to the direction of interest rates, which is why investors are going between one and the other. the premium, you get paid to own stocks. in relation to bonds today, it is the one place in the market above the long-term average. that is where investors ought to be putting their money. qwest in today us his insight and action, adam johnson with a look at individual stocks offering good value. manufacturers have a

clear message for the market. industrial-strength. to me show you what we are talking about. news for today, earnings, caterpillar beating estimates on construction sales. gm beating the estimates on heavy truck sales. black & decker beating the experts on professional sales. not just do it yourself but the pros. you may also notice the pros this morning. capital expenditures by companies, that was better than expected. durable good orders, better than expect it. you start adding up all these numbers and then you can understand why borrowing among commercial and industrial businesses is up 12.5% in the first quarter according to data in the federal reserve. versus consumer borrowing up 2.6%, and real estate 1.1%. it is all about industrial growth. it begs the question, who is next. industrial companies that have not yet reported but will be in the next few weeks and also where the analyst's have started raising their estimates ahead of the earnings

reports. the guys who make engines, l3 to medications, they make trucks. rockwell automation, emerson electric. they are upping the numbers ahead of earnings. next week and the following week. industrial-strength, that is the theme of the day. >> thank you. i want to talk about another -- other companies earnings today. shares of gm following. there was a big decline year after year. -- year-over-year. new trucks,s on its shares falling 1.5%. horton, the second quarter profit was up 18%, more than analysts had estimated. the texas-based company which caters to first-time buyers reported an increase in orders and home closing. we will have more on the markets in 30 minutes. "bloomberg west" is next. ♪

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>> live from pier three in san francisco, welcome to "request" where we cover the future of technology and business. i'm emily chang. the sec is putting out a proposal that could give companies willing to pay for it a faster lane on the internet. and wearable tech design is more important than ever to the tech industry. we will get the latest trends designeiner perkins partner and former president of the rhode island school of design, who joined me as a special guest today. first, a check of headlines.