year. a conservative member of parliament tabled the one-line motion after parliament had isen for a week-long recess. he would veto it. president trump is promising the nation's airlines new infrastructure and less regulation. he met with industry executives today at the white house. the president told them they are regulated as much as anybody and he said in the next two to three weeks he will announce something phenomenal in terms of tax. and president trump's choice for the supreme court called the president's criticism of federal judges disheartening and demoralizing. now the president says the senator who made those remarks public can't be trusted. in a tweet president trump said that democratic senator richard blumenthal misrepresented his remarks and he brought up his time.ry

and a snowstorm is hitting the northeast today. it is making it a miserable day for travelers. the national weather service says boston and parts of maine could get up to 18 inches with new york expecting up to a foot. airlines have already cancelled hundreds of flights. global news 24 hours a day powered by more than 2,600 journalists and analysts in more than 120 countries. i'm taylor riggs. this is bloomberg. ♪ scarlet: live from bloomberg's world headquarters i'm scarlet fu. president trump promises action on taxes. joe: the question is, what did you miss? scarlet: the president said he would advance campaign promises

to lower taxes, lifting stocks to new highs. in earnings even president trump's constant tweeting wasn't enough to boost a company twitter. twitter reporting a profit estimates.t missed we will be hearing from nigel travis in just moments. joe: let's look at where the major averages stand as we head towards the close. be a gill doolittle is standing by. abigail: well, we are looking at records for the three major averages in the u.s. we have the dow, s&p 500 and nasdaq all nicely higher. up to half a percent and each of these averages is on pace to finish at a new record close. a bit of bullish action for these stocks on a snow day day in new york city. let's take a look at some of the movers related to brands. sales were beat by 7.5%. it was driven by taco bell and k.f.c. domino's really was a lager --

excuse me -- pizza hut was a lager. that's helping domino's pizza achieve a record high. coca-cola beating both top and bottom line estimates. what investors don't like is that earnings fell by 4% on a year over year basis. dunkin' is up more than 4%. its best day since february last year after beating earnings estimates by 5% to make it a 64 cents per share. we did talk to a bloomberg intelligence analyst said the company's intention to become a beverage-driven, focused company is paying off. that they're really leveraging their beverage platform. so we hop in the bloomberg and 58 -- this is g # a bullish chart. a five-year chart. what we have here beyond a beautiful uptrend is a golden

cross. when the 50-day moving average is moving higher. the 50-day and the 00-day are both going higher. the last few times this has happened it led to very nice upside. 64% back in 2012. 22% back in 2015. right now this golden cross has yielded 18% upside. suggests there could be more appreciation ahead for the shares of dunkin' brands, joe and scarlet. scarlet: thank you. on the heels of that we will bring in dunkin' brands c.e.o. nigel travis. abigail gave us your results. we have seen a slowdown in the past six to nine months. what do you see that tapering off now? nigel: well, i think firstly, scarlet, good afternoon. yeah, i think we've seen plenty of evidence in all the different segments of the restaurant industry as far as

casual, casual dining, q.s.r. i think we helped a little bit we are in the fastest growing part of the restaurant industry which is the breakfast day part and even faster segment is coffee. everyone wants to get into coffee. it's competitive but it's fast growing. i think the economy is clearly steadily improving. we'd love to sew g.d.p. above 3%. so far it hasn't got there but i think the recent jobs report show everything's going in the right direction. so i'm hoping this year the restaurant industry will probably have some struggles but i think it will steadily come out of this trough that we've seen for the past period of time as you said. scarlet: and of course, with dunkin' focusing some on beverages, we see coffee prices rising a bit as well. what does this say for your franchisees? is there a plan with all the talk about import taxes on your beans from central and south america?

nigel: well, we've essentially bought out for most of the year on coffee. we actually don't see too much inflation on coffee beans this year. i think our franchisee own has done a nice job on that. the import tax is something to take into account because there seems to be all kinds of debate about it. but we're looking to the future with some confidence on commodities. i think commodities overall this year essentially are flat to actually being a tail wind which is not something i would have said to you two months ago. i think it's improved in the last couple of months. so we feel good about that. and on pricing, dunkin' is about value. our franchisees understand that. we've worked with them very hard on pricing. what we call smart pricing. and, yeah, couple years ago they may have gone too far on increasing prices at restaurant level. i think they actually understand that's not helpful to driving back. back to your earlier question. and i think we are in for a

good period of time where we won't see too many price increases and that's going to be good for our consumers and good for our traffic. joe: nigel, scarlet mentioned the political situation and of course the other thing that's happening in corporate news and politics is essentially the politicization of all brands. we saw it during the super bowl. we see trump calling out -- president trump calling out companies from time to time. it seems despite the best efforts of corporations they get sucked into being on one side or the other. how are you thinking about that risk as a very prominent consumer brand with a lot of brand identity, this risk that's out there of your brand at some point theoretically being politicized in some way? nigel: so, joe, interesting question. and thank you for that. i mean, one of the things i tried to represent through my time at dunkin', which is just about eight years now, if we want to grow, we have to do it through our franchisees. whenever we think about how we

influence administrations, whatever, persuasion they are, we have to do it through their eyes. so we fry and stay out of too much controversy. we try and make sure that our point is made. we talk to the administration. we talk to states. we talk to cities all the time. we take groups of franchisees with us, and basically our message is, we need policies that's good for small business. our franchisees are small business people. we need policies, for instance, tax reform will be very helpful for all of us. and obviously sensible tax reform. immigration reform because one of the things that our franchisees are challenged with day in, day out and they explain all the time, is finding labor. there is a little bit of a labor shortage now which seems perverse after some of the struggles of the last few years. we need some hold up on regulation. i'll give you an example. we had a store that was being built in the midwest. it was held up for over two years because two water

authorities were arguing over who had jurisdiction over that particular piece of land. so i think it's a lot of things we need. we try and be very practical. we need to be very -- we try and be straightforward. we try and be very civil. we spend a lot of time talking to administrators right around the country. so i think by having good, solid and sensible messages that they understand we get our point across. scarlet: well, to that point then, i wonder what kind of impact have you already seen on the president's immigration ban? how is that affecting your decisionmaking at the moment? nigel: well, scarlet, good question. we had none of our franchisees tell us about any impact so far. i just think that it's probably too early, but we have not heard anything from our franchisees on it. joe: i want to go back to a macro question. you mentioned the possible labor shortage out there. what is the situation in terms of wages and how that's

affecting franchisees' margins? nigel: well, clearly there's been some very fast moves to $15 in certain states like california and new york. our franchisees have been concerned about that. i don't want to give the impression that they're antsy of the minimum wage going up. we always encouraged that. we do believe increasing the minimum wage has some kind of ack setting effect on the economy. but franchisees have been concerned. there are many things we can do internally. we can do things like energy. we looked at using labor more efficiently. we introduced technology like our on-the-go app is designed to actually reduce the amount of discussion time between the guest and the crewmember. we look at streamlining our menu through a major test we announced today. but we'd also -- we also think there's opportunities out there. sensible immigration reform is one as is trying to find ways

to recruit more younger workers because youth unemployment is still above 10%. scarlet: and of course, staying with the macro idea, you're expanding in china and you're a big supporter of global free trade despite what the president said. you said you would give the president concrete examples of being a free trade supporter. what's your most compelling argument and have you made it to the administration? nigel: well, we have not actually sat down with the administration as of yet. i'm sure we will. we had very good discussions with the last two or three administrations, so we'll find an opportunity to do that. yeah, we do support free trade. we're in 61 countries. i was in china, korea and japan three weeks ago. they are all talking about t.p.p. they're actually talking about taking advantage of the fact that america is dropping out of that. so it is important to try and hopefully get rid some of these barriers so we can move

products around the world. we actually have examples on the ice cream side of our business. the baskin' robin side. more countries we can get into will be good for jobs in america because our ice cream that's exported around the world is actually made in alabama. so we look forward to good positive discussions about trade and obviously trade isn't just focused on the u.s. there's some moves in europe like brexit in my original home country that we're concerned about as well. we made our point on that very strongly. not only to the foreign secretary but also the british ambassador because we believe that access to the broader market, the e.u. market is very important. scarlet: nigel, final question to you. in december you struck your first sports partnership with being with the national hockey league. being a hockey fan i love that news. i wonder what kind of partnerships you're looking into now? nigel: well, we had lots of

partnerships with different sports teams over the years, scarlet. and i didn't know you were a hockey fan. we saw that as a great opportunity. we saw that for two, three reasons. amazingly and you have proven a point, a lot of women love hockey. we saw that as a way of accessing a very good -- a very strong segment of our customer base. secondly, we had huge success with affiliations with teams where if they win you get a special price coffee. something like that. up here when the new england patriots won the other night in a very exciting game, we gave away 87 cent coffee. so we will do the same with hockey teams and the great hook for us is to drive people into our perks program that we believe is a great value for consumers but most most of all gets them very quickly to on-the-go ordering which helps speed up our transactions and gives us a lot of data for our market. so we think that deal with the nhl is great. it's going to be great for dunkin' going forward and we

look forward to many relationships with the national hockey league teams. joe: thank you. nigel travis, c.e.o. of dunkin' brands group. coming up, we'll talk to george pearkes offering some signs that perhaps all is not well as it seems. this is bloomberg. ♪

joe: economic has remained high since the election. few trends that look at the economy. george pearkes is a macro strattist with bespoke investment group. he joins us on set. george, great to have you on the show -- on the set. people are generally pretty happy about the economy.

things overall look good but there are perhaps yellow, yellow lights out there including -- let's start. you brought some charts. let's start with this one. core bank loan growth, what are we seeing here? jim: leading indicators -- george: leading indicators are high. one of the things i really liked about the economy up until relatively recently was the fact that banks were starting to open up their balance sheets and lend to consumers and to businesses. and in the last eight months or sort of since q-1 2016 we have seen that slow down. loan growth is still very much practice posttiff but that above trend rate has pulled back a little bit. deceleration year over year. joe: and this is all loans? george: so core bank loans strip out most volatile series. this is c.n.i., consumer loans. joe: but it's broad.

scarlet: it's not encouraging news for people who are looking to have a comeback? george: right. if you're a business and you want to invest in machinery or in some sort of new product or whatever it is you're going to do, you need to fund that somehow. now, lots of businesses have tons ofen internal cash flow and doesn't need to borrow. we're just saying, look this is something you would consider a generally positive thing for the economy. people are able to spend more, people are able to invest more when there's more credit available. and the growth of credit is slowing down a little bit. scarlet: all right. let's talk about credit and talk about how tight or loose it is as well. we have another chart here. this this is 5888. you look at tighter credit conditions. not just for consumers but for mid to large companies as well as real estate developers. there's that tightening. and, of course, going back a couple years. but even if you take that to this year you can see a big upswing. george: yeah. a lot of things people point out there have been six straight quarters of tighter --

reported tightening of credit standards by senior loan officers in the fed, senior outlook surveys. it's not just c.n.i. loans, though, which you would think of cap x. it's also consumer loans in the form of credit cards, commercial real estate loans. none of this slike a credit crisis or anything like that. we are not even what you would consider typical prerecisionary levels. what it does suggest is credit growth has slowed a little bit. it doesn't look that great and look to be trending worse. joe: the other day when president trump signed an executive order rolling back regulation. he said some of my friends can't get credit. is there any reason to connect the two dots between regulation and this or is that just two totally separate things? george: so i think stepping back a bit, first off, there were huge amounts of bank lending post crisis. there was a lot of deleveraging in the media. bank lending rebounded. it's at all-time highs. it's still growing pretty much

however you measure it. if regulation was a significant head wind for bank loan growth you think that would be, you know, not at all-time highs and not grown at a strong rate up until the start of 2016. the recent deceleration hard to argue -- i wouldn't draw a direct connection at all really. joe: all right. thanks, george pearkes. and you're going to be staying with us because we're going to be coming right back with some more must-see charts on inflation and other stuff. this is bloomberg. ♪

scarlet: i'm scarlet fu. we're with george pearkes. you can use the chart at the function of your screen. the fed's preferred measure of inflation, you say don't just focus on the year-over-year data points. you could miss some turns there. you are looking at more high

frequency data. what does it tell us? george: we talked about bank loan growth and how year over year it's decelerating. we're doing a similar concept here. so all we're showing is core p.c.e. and showing at annual rate of changes, three months, six years and one year. what you want to look at that turquoise line. the three-month analyze pace of core p.c.e. growth is very low. it's about as low as it's been, what, since the beginning of 20 15. that is not what you want to see if you expect year over year to accelerate. if we keep printing the year over year trend on a shorter time period, year over year has to fall. it's just basic math, right? what we're seeing is less inflationary pressure. in terms of recent core p.c.e. joe: it's funny because this is happening right at the popular meme is that inflation is back on the rise. george: gas prices are up 30% year over year. there are all sort of industrial indicators that show

producer price inflation is positive in china for the first time in ever and the euro zone and different countries around the world. one of the thing that's different about the u.s. consumer, they tend to spend money that they save on gas on other stuff. when we saw headline c.p.i., headline p.c.e. collapse with the oil price collapse, a lot of money got channeled in a lot of other stuff and core p.c.e. rose. now we're seeing something related to that except the other way around. an unwind of that money that was being spent on other stuff now having to go back in the gas tank. joe: so take it to the final conclusion, what do you see this meaning for the fed? george: the fed wants to see core p.c.e. at least close to 2% year over year on a consistent basis. if they can't get core p.c.e. up there it's going to be really hard to justify a hiking cycle especially when there's a lot of uncertainty around the economic narrative right now. things like the fiss tiff narrative that the trump administration will roll out. infrastructure investment, that kind of thing. we could see inflationary

pressures are step up but right now the short-term indicators are not really suggesting that the fed is up against the wall with regard to their 2% core p.c.e. target. scarlet: of course when you talk about core p.c.e. your inflation you are looking at commodity prices. even when the fed wants to strip that out. given the snowstorm that we're seeing in the northeast today, we want to bring in another chart that combines commodities and the snowstorm. this is new york, pennsylvania and ohio importing the most natural gas from canada in almost two years because of this forecast of the snow blizzard. net imports of the fuel surged about 700 million cubic feet on thursday. that's the most since march, 2015. you have to go all the way back here to see that. joe: you got to love the sensitivity of the chart that we can see that fast the imports. the commodity situation, you mentioned gas prices up 33% year over year. is that really what this inflation story has been about? are there other factors that -- the wage growth still generally seems to be trending up. george: yes.

so there's all kinds of stuff you can look at to suggest labor resources in the united states are gradually ticking tighter. we have been a big proponent for a while that the labor is tighter. the sort of classic headliners that people look at -- and the commodity price index, whether it's iron, ore, copper, coal, oil, for whatever idiosyncratic are off their lows. if you don't see c.p.i. rising in that context, then what's going on? i do think it's important to separate out the core inflationary pressures in the united states which don't look very strong right now from the headline commodity stuff that does look very strong because it's coming from very low levels. scarlet: all right, george pearkes, macro strategist, thank you very much. with less than four minutes left to go for the close, we were at record highs for the major indexes. the the dow 128 points.

president trump promised some action on taxes in the near term. joe: phenomenal. scarlet: this is bloomberg. ♪

scarlet: we're moments away from the closing bell.

miss?" you dollar gaining after president trump signaled long awaited and cuts.ed tax scarlet yu. joe: i'm joe wiesenthal. we want to welcome to our closing bell coverage every day week p.m.4:00 to 5:00 eastern. scarlet: we begin with the market minutes. closing at record highs. levels.hing new this is on the heels of donald trump promising something phenomenal in terms of tax. joe: you know the market of the trump trades stalled out wondering what was happening to all of the tax stuff. i think investors excited that it is still mine. of scarlet: at least in the next two tour three weeks. if you look at the groups in the s & p500, nine out of the turned green. 8-1130 minutes ago. a broad based

advance. up 1.4% utilities and the safe haven doing less well. we're now on day 83 drop in the s&p 500. that's the longest since november of 2006. if you look at what happened overseas as well, pretty green, joy us for anyone who is long on equities all around. i want to point out the performed the uk and eastern markets who had concerned about the eastern sector thanks to the pickup in french retail revenue. 1.3%.c 40 rising a solid day of gains across europe. joe: let's look at the bonds earlier. scarlet showed the one category of stocks that lost the utilities. this chart basically shows why. after yesterday's tenure yields falling market on theday, back rise hitting 2.4%. not really any particular news other the enthusiasm about trump plus a

little bit optimism in europe today. area where there's not optimism is grief. two-year yields. over 10%. you know, we just -- two weeks ago, nobody was talking about greece. the short-term rates are surging as concerns mount over weather the next slug of bailout money will ultimately get released. scarlet: in terms of currency, u.s. dollar erased early losses after trump dropped the about tax reform. the dollar yen went from 111.60 to more than 113. if you look at the two day chart of dollar, you can see the move there. more than one big number over the period. the new zealand kiwi. the kiwi lost the most thend versus dollar. they left the rates unchanged, saying they need to be sure they will hold at 2%. speaking of central mexican peso strengthened after they

raised rates by 50 basis points. it needs to combat rising inflation. of course the donald trump effect that keeps the peso lower. you have the added volatility of oil prices. mentioned this yesterday, i want to bring it up again. another crazy day for bitcoin. it plunged 11%. it made yesterday's 3% drop look like a drop of the bucket. there's the lower earlier. it was nothing. this comes after a chinese platform suspended during a system upgrade. the upgrade could take as much as one month. we're talking about a ing period of time which chinese consumers and investors can't bitcoin.the joe: interesting chart. and on commodities, let's look. one of the big winners today. up 1.6%. we're going to talk about coffee with the dunkin brand ceo. this is on the lower brazil.out of

goals selling off. up 1.3%. scarlet: those are today's market minute. breaking news from pandora. they are reporting fourth quarter adjusted loss of 13 cents. that's more narrow than what analyst had been anticipating. not losing as much money as had been expected. revenueuarter was $393.6 million. the outlook here is interesting. $310 to $320 million that misses the estimate for $341 million. joe: it really seems like it is the outlook, the q1 revenue of to $320 million that's the weak spot here. as you mention, the adjusted loss actually narrower than expected. the rev lieu for q1 between 30's and $20 million behind what analyst had been expecting. there's why you see the down a little bit over 2%. scarlet: all right. let's see in the earnings theme and take a deep dive into the

bloomberg. you can find the following charts at the screen.f the we're past the hump when it comes to earning season. i wanted to bring up eao. so far about 70% of the 500 has reported earnings. 374 out of 500 companies in the s&p 500. we're going to stay on the surprise tab here. when you look at sales, they are in line with what analyst had anticipated. just up. earnings are beating the consensus estimate by 3.5%. lagging here? take a look. you've got utilities in 10.5%.lar down and they actually lead the way in terms of sales growth. interesting as well. let's just move this here and click on the growth function. growth tab. what you'll see is even the sales missed the estimates in terms of they actually rose 9%. so it is a big divergence here. what might be happening is they are doing a lot better versus last year. analysts were a lot more optimistic than they

should have been. and this could be linked to the move higher in yields in the fourth following the election and following the better data as well. now lacking on the isnings growth energy. stay with me here, as we go into the bloomberg. down 10%. even as we see less pressure. what could be happening here is they are ramping up spending as opec cuts production and they get support from higher prices and also the prospect of easier policy. joe: you have to love playing with the function. one of the interesting things about this quarter is that it's been really good. nobody is paying much the bign to picture with earnings right now. so, you know, we -- exceptionn with the stock market rallying. there's been so much focused on macro policy, of these good earnings getting lost in the noise. scarlet: let's put this all into perspective here. going to go into the historical analysis section. how earnings gross has moved. this is the current quarter, first quarter.

we are looking at sales and earnings that are hire. we're out of the recession. average earnings per share growth at 4.9% versus last year. of course this follows a second quarter of gains and earnings per share. course that previous to that you had three straight quarters of earnings drop. joe: great chart. all right. we had breaking news. earnings are out for the fourth quarter. coming in slightly ahead $2.09 billion. adjusted eps at $1.17 versus 137. you see the stock down. not a huge reaction to the numbers. just down .3%. bookings $16.1 billion. scarlet: one stock that is moving is yelp. the outlook trails the consensus estimates. it sees revenue this

quarter of 195 to $199 million. analysts are looking for more than $200 million in revenue. earnings per share is 27 cents. anticipating 25 cents. a beat on the bottom line, but the outlook is not so foolish. joe: there you see the chart getting clobbering afterhours. 11% on the news. let's blow it out a little bit -- i'm sorry. we moved the chart. a look at one year chart which i have here in my terminal, the stock has done pretty the last year. it's up close to itss -- close to its highs. obviously a big change after hours. down 11%. scarlet: absolutely. we'll be watching for stock to tumble when trading resumes during regular trading sessions tradinglar hours tomorrow. anyone who wants the follow the latest earnings news, you can onck everything out tv go. of course, it is our interactive tv. you can click on the charts where you can see some of joe's charts that he highlights

throughout our programming. from new york, this is bloomberg. ♪

mark: i'm mark thompson. it is time now for "first word news." jeff sessions has paid his first visit to the justice department after being sworn in this morning at the white house. the bruising confirmation process saw some of his former colleagues in the senate question his record on rights and immigration and whether he would display fromendence president trump after having campaigned for him so vigorously. takes office as

the ninth circuit court of appeals prepared to executivee order which temporarily suspends the nation's refugee program and immigration from seven muslim-majority countries. the president signed a trio of executive actions directing the department of justice to effort toits fight drug-related crime and violence against police officers. mr. trump said the actions include an order that the doj created task force to stop violent crime and curb attacks on law enforcement officers. he said he also ordered the justice department to partner with the department of homeland security to quote break of criminal cartels. italy's prime minister the european union needs to move forward in a much bolder way guard a multi-speed future that will allow all countries to find a suitable degree of integration within the eu. theking another london school of quicks,

he said the brexit vote in his words has verified once more the issue is about different degrees of ambition. have to move forward in the much bolder way with a member willingat are to do so. without the different degrees means different levels of friendship or cooperation. mark: he also held talks with may.a it came a day after the house of commons came approval to a bill authorizing the government to start exit talks with the european union. global news 24 hours a day, powered by more than 2600 journalist and analyst in over 120 countries. i'm mark coverton. "bloomberg." scarlet? scarlet: thanks. breaking news. results.rting a big disappointment. the stock is down by 10% in afterhours trade. is notue here

the quarter that ended, but the outlook for revenue this quarter. $199 million. it is below $200 million. looking were for $204 million. tumbling.is joe: we have earnings out. the company adjusted of cents. that's well ahead of estimates and adjusted revenue 2.43 versus billion. you see stocks almost up 10%. the board authorizing new buybacks over the next two years, increasing the dividends. whatare liking they see from the call of duty maker. scarlet: in between they slip in are goingcement they to change call of duty to bring roots.k to its a space-themed version did not do well. they are going to bring it back. throwback time. "what'd you miss?"? twitter shares tumbled after missing analyst

estimates. the social network with luring advertisers not investors. bloomberg editor at large, cory in san francisco. investors and analyst pricing in because of president frequency in using the service? >> maybe. some believe that might happen. certainly twitter couldn't have been more in the news. i think the company has benefited. they were ever going to get some benefit, you think that's happening right now. they weren't able to track the users. they also aren't able to investors. you can see it from their stock price. i think it is to the point. it is really interesting terms of their miss. it wasn't just about the user growth. it is about the earnings per share miss. that's important, because one of the reasons it is happening is they are giving out vast fortunes in stock compensation still years after

the ipo. question, could they just cut cost dramatically and be a profitable but not if they justny sort of accepted they are never going to be as big as facebook or anything like that? that sort of the fundamental thing they still pull in a lot of revenue, but they have a structure that's still geared toward being much gigger and theyr growing than are? cory: that's right at the stock comp there. is not a cash expense. i'm sure they make a legitimate argument. they are just giving out the share, and they have to record a value. it doesn't cost them cash. hasproblem is it been such a huge part, as a percentage of loss, stock-fueled losses for this company as the percentage of their loss. i mean look at that. in 2016 this is after ipo, 140% of the losses were the granting of stock options. it's lead to an explosion.

it was in public and about 360 million shares. million at 714 shares right now. they are issuing shares we looklly as to say here in the west coast, willy-nilly, that's what we say. think about that. they are writing checks with shares, even as the isre prices collapsing. the buyers and ibo are getting hurt. the insiders are getting more and more shares. joe: did they get asked about phenomenon on the call about whether they see that as a plus or minus? there was a brief mention of it. i think the call was very, very positive. things are great. are turning around. you know, i think jack dorsey is personally a nice and thoughtful guy. you know, i said on bloomberg radio a minute ago, it is like having the ceo of another company. both companies are theiral points in life. it is like you are in the operating room and you have a surgeon with body andin one another hand in the

other body, saying don't worry. i got this. at some point, you might a full-time ceo. this company is in trouble. scarlet: clearly he doesn't have it right now. back to joe's point, maybe the company is just not a math market service. do you see any evidence that the company itself is acknowledging that it pivot to take advantage that it's a niche product and not can scale?ou cory: we just talked to the analyst about that issue on bloomberg radio. he had a great analogy. he said the kind of advertising is brand advertising, big advertising. we're going to carry nfl game, we're going to carry the most important television after the world after what'd did you miss miss? in order to do that, you a bigo have audience. what we're seeing pretty clearly here is the twitter some use it 315 million users worldwide. they are not great at

small business and niche advertising doesn't seem to be their focus. seems to be their market. we're not hearing from on focus on small business and small advertisers. we're seeing as a small theence for business. 315 million users or whatever, less than that, it not nothing. but it is nowhere near the kind of audiences that youtube, facebook, google, and beyond, the places that are drawing the big audiences are getting. joe: thank you very much. cory johnson, bloomberg's editor at large. coming up, three major elections in europe hold the prospect of the country getting dragged out of the single currency and the european union. how our traders redrawing their strategy? that conversation next. is bloomberg. ♪

scarlet: i'm scarlet fu. what did you miss? let's take a deep dive into the bloomberg. witht to start currency volatility in europe. we've seen investors buy volatility ahead of the french election. the gap of three months to ten months reached a record. we have a blogger infer says the put premium doesn't look pound dollar prior to brexit. the blue line shows the pound/dollar in cable which is the yellow circle. it starts to increase months prior to the vote. of course it is going down because it is negative for the pound. 4% toves up to less than 6% points by june. look at the white line. nowhere near as dramatic and distressed as what

in cable. that consensus view -- this view, of course, in with the con sen the pence will not go past. anxietyre's a lot of out there. people aren't ready to say this is going to happen. all right. and howeurope people are trading european political volatility, i want you cheer,g in peter head of macro strategy. he recently wrote a "tearing europe a cinder." joins us on the phone. peter, thanks for joining us. what's the market with the euro zone political list? pricing inis little. it is nowhere near where it is back at the peak of the problems in early 2010 and 2011. what is interesting to me though is french debt createting to worse than, you know, german debt. it is very noticeable.

it is getting -- that is back to 2010, 2011 levels. herenk the concern would be if france goes, it gets very problematic for europe quickly. i don't think that happens. but that's the concern. looking out at lapen. relative to boons, we're like 2012. you do see it picking up. so, you know, obviously in 2012, it was much higher. right now it is modest. is it kind of the where nobody canly thinks she win. the polls don't look good. but nobody wants to be got itson who wrong after seeing what happened with trump and brexit? >> yeah, we have two to face. how far does she get? does it stop? we've seen people over react. brexit came out, markets sold off overnight,

days we are pine. with trump, we were fine day.e next the idea of central banks getting involved and maybe it is the reality that all of the are going to take time. whatever some hard-line stance might be, impracticality is going to come out simpler and not as aggressive. same time what's ironic is the underlying economic data out of europe has investorsving even as are expressing the concerns, the vague concerns that are months and months out. yeah.: so when i go back -- about a month ago, we didn't like french bonds. we didn't like it more because we thought europe was going to show growth andon it might pull back. we thought at the time that a rise in french bond yields was a healthy signal. now it is a little bit torn. you do get -- you are data.g better markets are looking better. at the same time, you have this concern. i think it is going to downplayed. i think we're going to get through it. then we'll go back to cons rating europe may

turned a corner. let's trade it that way. joe: we're talking about france. france.t just italian and spanish spreads rising. it is interesting. talking about political risk in spain at all right now. it is all france, netherlands, italy, greece, portugal. it looks like it is a general, peripheral concern that's once again coming back to the floor of the market? caller: yes. it is -- it might even broader than a riff call concern. when i look at world, back in the original had onewe problem: that was over extended countries. they all looked the same. they were spending too much. they had too high of to gdp. even country has its own separate problems. if france breaks up. sarkozyeally and merco held things together. it made sense to me to buy a protection in case

it happened. itouldn't focus on as a basic strategy yet. scarlet: joe mentioned italy. thing you wrote about in your note is a big issue for investors is determining whether italian bonds should be treated as credit or rate products. what's the distinction there? caller: right. we've been living in the world at the height of the crisis, everyone treated it as a credit risk. is italy able to pay its debts? will they pay their debt? you had the deals go much, much higher. a lot of problems paying their debt without the central bank. the central bank is supportive, buys their debts, and maybe they are too cheap and there's too many shorts. as an them inflection point where the next thing is either going to be this concern that they are credit and we go wider, or it was again. scarlet: thanks so much for joining us on the phone. trumpt, president and japanese prime minister set to meet in

washington tomorrow. is "bloomberg". ♪

mark: i'm mark coverton. it is time for "first news." speaker of the uk house of commons faces a noncompetence motion over the announcement he would refuse to invite duringnt trump the uk visit this year. a conservative member of theiament tabled motion after parliament had risen for a success. attempt to veto any attempt to visit was the last straw. president trump will welcome canadian prime minister, justin, to the

u.s. how will discuss best for canadians and americans. he has worked with other world leaders, including teresa may, on how best to engage with president trump. mr. trump's choice for callspreme court his comments threatening and demoralizing. the senate who made the remarks public can't be trusted. he said senator blumenthal misrepresented his remarks and brought up his misstatements about his own military service. spokesperson largely confirmed the account. the new mobile app allows users to join in the search for fugitives and suspects as well as ande victims missing children. the fbi wanted app is a digital upgrade of the wanted method the bureau has used since

its inception. has alsou created the bank robberies app and the child i.d. app to allow publicid response to potentially dangerous or life-threatening situations. global news 24 hours a day, powered by more 2,600 journalists analysts. scarlet? scarlet: thank you. let's get a recap of the market action. s&p, dow, and nasdaq recordmbing to highs. 11 sectors closing higher. the loan lagger really materialse with little change were utilities. the safe havens that have not done as well with the rise. joe: absolutely. earnings that came out after the bell. you see this year surging after hours up nearly 10%. the maker of call of eps ofported q4

94 cents. that's well ahead of expectations. adjusted revenue $2.5 billion coming in. the company authorizing a billion in buybacks over two years and increase in dividend. very flavorrable report there as you can see stock up 9.5%. scarlet: not so favorable is what yelp reported. it was down 11% after the trading. it appears some of the decline off, 8.3%. earningsarter peat the analyst estimates. when you look at the outlook for this year, revenue in the first quarter below $200 million. looking for $204 million. yelp down big time. look for the stock to lower tomorrow. joe: "what'd you miss?"? met with trump u.s. airline executives and assured him his administration would compete with foreign carriers. the chief washington correspondent caught up

and asked him how the meeting went. >> it was terrific. allid you talk at about tax policy? what are you hoping? did talk about tax policy. we talked about nothing specific, but the overall need to reduce the tax burden and especially for aviation. the travel ban come up at all? >> it did not. >> what about subsidizing. know cutter and backing them up. >> our conversation was limited to primarily infrastructure investor. we talked a little bit as i said about tax regulatory reform. nothing very specific. it was more about how we might get organized to work together with the administration. gave gary cohen to work with the airlines and come up with a punch list of accountable items. joe: kevin joins us. what else? garyter: he said

cohen would be leading the way in terms of the efforts for air control manufacturing. he says they discussed subsidizes overseas effort. hasairline industry been critical of international subsidized program, cutting airlines in qatar. they talked about the nation's airport system. really another in a series of meetings that the white house has with thehave various leading ceos throughout the country some extent the big news being we're expecting a tax plan within the next two to weeks. scarlet: gary cohen has a big portfolio. like the meetings say we talked very generally about the and to change taxes overhaul this regulation or that regulation. there are never any specifics. ont's your read that? are there specifics but everyone walks away promising not to say anything about it? or are the people being summoned to washington to talk big picture and else?g reporter: that's a good

point, scarlet. it seems that companies of twoing one approaches in dealing with the new administration. some companies, like we saw today with the ceos, are taking a more proactive approach. the whiteth house, meeting with the advisors, trying to work with them. other ceos are taking a more combated approach. i'm referring to nordstrom which was in headlines earlier today. others are taking a more nuanced approach, like the ceo of tesla who to sit at the able and walk political tight rope. i think what you are seeing today is an extension, of course, withwe've seen boeing and even some extent lockheed martin theier in administration a couple of weeks ago. joe: one of the other big washington, neil gorsuch, the nominee apparently telling the senator from connecticut that he found

attacks onrump's judges to be demoralizing and disheartening. this is a rouge to get the democrats to like gorsuch? reporter: joe, a lot of republican aides would nothing more than to avoid having to invoke nuclear option to bypass the 60-vote in order to just have a inple majority vote confirming neil gorsuch to the supreme court. earlier this afternoon, president trump met with key centralist and moderate democrats at the white house. senators joe manchin, joe donnelly, and john tester. they are the four moderate democrats that president trump needs to leaster or at work with. it is not unclear whether or not they will neilto confirm gorsuch. however they could vote to enable a vote to occur.

is whatht now is the coming quite an elaborate rapid response from the white house regarding the confirmation process. that's what they have currently.n scarlet: did he say anything to republican senators? i find it remarks tomade the a democratmenthal, from connecticut. did he make the same complaints from the other side? now they right are keeping tight lips. i can tell you earlier this week that kelly conway and forest epstein were on capitol hill. are two top administration advisors meeting with republicans. i can tell you that senator, kelly ayotte, of new hampshire , has been working and arranging meetings. effort a broad in order to unite the republican party. it has been complicated tweets against the ninth circuit judge out on the west coast

temporaryhis travel ban, executive orders on immigration, and there has been some criticism and frustration quite frankly within the republican caucus on capitol hill about how house has handled that. they are being more aggressive in their outreach efforts in keep this republican party in the senate united. joe: kevin, shinzo abe, the cominge prime minister, to meet president trump. they met briefly after the election. think he gave him a golf ball. now they are going to golf. what's the goal for the meeting? is going this to be all about trade. we've heard president trump talk about trying to renegotiate trade deals with a host of countries next week. of course in his meeting he willdeau, talk about trade with canada. of course he's going to focus on trade, andfacturing, exports to japan and, of course, imports as well. scarlet: all right. kevin from the white house. thank you so much. we will have full

of shinzo abe's meeting with president trump. up, disney deems to have lost the formula for box office hits. why things become popular. what makes a hit? this is "bloomberg." ♪

joe: "what'd you miss?"? there's no such thing as going viral. strategy to what audiences and consumers want. the next guest "hit makers: the science of popularity in the age of distractions" explores market ofthe why things become popular. joining us now is derek thompson. a senior editor. what do you mean there's no such things as going

viral? people are always talking about this video or song going viral? right. there's a sense that it spreads like diseases. one person gets infected, sharing it people, and spreads over many, many generations of intimate sharings. data scientists look at strategy of information online that's gone really, almostbig, it always has one or two 1.1 million broadcasts. popularity on the internet which we organic and social is driven by the bigger broadcasters. they are hidden from say, because someone shares it with drudge, i read it, it looks like i'm finding it and sharing it. scarlet: everything is manufactured. when you look at hits across the timeline the common's thread? derek: one thing that's interesting in looking fromts impressionist art to snapchat, technology changes faster than

people do. technology sort of rushes ahead at moore's law while our brains with therawl pace of darwin's law; right? new hits for formal jobs. one of the cc's of the book is the thing we love the most are surprises. we love new products and ideas that somehow opens a door to familiarity. that's really where meaning was created. that click between you are discovering something new and i got it. it is registering a familiar feeling or idea. joe: one company -- we were just talking about this earlier this week. disney. it seems to have the permanent hit machine on its hand with "star wars" of you wrote about ther wars" and why franchise is so successful. what is it about it a) it successful and b) is it a permanent magic money machine? derek: "star wars" is a perfect case study. familiarity beats

surprise, and distribution beats content. story ofe "star wars." it is not an original so much as a bundle of bundledfore illusions. george lucas took all of his favorite stuff when was a kid on television and flash gordon and all of the comics, and threw it big stew. it is that thing, that combination of familiar elements, that we love its originality. disney is just a genius at distribution. is not only a movie company, it makes most of its money from television and it owns top ten the amusement parks in the world. it understands better than any hit maker how manufacturize its best content. scarlet: another genius at the president. political ideologies or political sensitivities at the moment follow the same kind of familiarity. they latch on and see comfort in them. about the influence and reach of the president as a hit maker. what is interesting about donald trump is you can see him

as an entertainment company. not only because he is himself a hero franchise, he's literally telling voters hero.super only i can fix it. i'm not going to work in the system. i'm going to work above it. like you said, he's also a genius at distribution. it is not just his twitter following, it is also that he has been a genius since the primaries at getting his message distributed on platforms he doesn't control. that really is the key challenge in an age of distraction is getting broadcast platforms you don't control to still pick up and distribute your message. joe: this is really -- you know, how technology changes. these rises of the megaplatforms whether it google, facebook, twitter is pretty big even though it is not as big. all ofyou know, the -- every media company wants to be a platform or be really big on the platform. is it just facebook is going to win it all? inevitably going to one? where is it all going?

derek: i think facebook have to look at. it is the global newspaper of the time global telephone network system of our time. it is social and broadcast. that's very powerful. if distribution does the future, then i don't -- i can't think of a better company that's positioned than amazon. in the middle of the 20's century, there was no business model better cable television. it was essentially a private tax system for entertainment. 100 million households paying for a bundle of services that would pay for a budge of stuff consumed or didn't consume. that described u.s. government and the cable bundle. the next big bundle that's growing? it's amazon prime. 64e than americans, million subscribe to amazon prescribe than cable television. that's an amazing stat. i think that gives amazon incredible distribution power for the entertainment content. sum is up saying content might be king, but distribution is the kingdom. mean comcast has it all figured out because it has the content, programming,

and distribution? and at&t has to buy time order to play catchup. derek: one thing is interesting when you and at&tomcast and amazon. we know the cable unbundling, even newspapers. we are clearly living in an age of bundling. amazon does television movies and music. at&t wants to own journalist and telecom. comcast wants to own both the cords that connect people's home content that flows through them. we're in a an age of unbundledf content. scarlet: well said. derek thompson. makers: a"hit sign of popularity in an age of distraction." i love the title. derek: thank you. up, at: coming perspective on the trump administration. this is "bloomberg." ♪

scarlet: sales at kfu and taco weakness.et the they are calling it it a banner year as it went off of the struggling aina and launched strategic transformation. the policies on immigration, and the proposed border tax big impacta on yum from of cost of avocados and limes. spoke to greg creed and asked what he made of white house rhetoric. >> the position that taken is one of their core values is to believe in all people the world better. i've reinforced that's not just quarter to yum, quarter me as an individual and as the leader. i'm a huge believer in, in know, believing all people and, you know, we need to be an society, not an intolerant society.

i want to make sure practicem we those values because we believe in those values, and that makes us unique us a great employer. scarlet: another policy is a tax.r how does that impact your prices and also the exports and imports? some of your food. >> well, again, this is the problem. there's a lot of speculation and no legislation. we're watching that. well over 90% of what we the united states comes from the united states. this is were to have a very small, you know, impact on us. again you can't respond to speculation. yes, we're looking at it. watching it. obviously the supply chain team is looking at these things. focus is on the business, driving south, satisfying the customer, and doing all of the things. when legislation occurs, we'll be thoroughly prepared for it. get overly responsive to speculation. that can be a huge distractions for businesses. one i plan to engage

in. scarlet: the next labor a fast foodybe alum, a nominee of carls jr. what do you make of the policies having the type of experience you are getting now? i thinksaid, andy has run a large organization with a large number of employees. i think that's fantastic. he's still not the labor secretary. i'm not waiting for who the next labor secretary is. he comes with industry experience that would be great. at same time, when he's confirmed, if he's confirmed, that's the way the system works. of i want to get focused on running the business. >> a lot of industries and businesses haven't a choice. they've had -- you know, ory've had one-ins they've had calls to meetings with the president. what do you make of the interaction between the branch of government and business right now? well, it is a new day

in washington. obviously the administration, you know, is trying to send signals. at the same time, you know, businesses is what it should be doing is focused on running the its got that's at hand. as i said, i think the great thing about our industry is that, you know, it doesn't matter who the government is and what country you are in. people want job growth. when we grow as a business and we build thatnew units, creates jobs. it creates jobs to build the restaurants and creates jobs to run the restaurants, and it createuates jobs in the supply chain of that signals to me more job growth. administration in any country wants that. that's why i think we're incredibly well suited be successful and to get supportive. get support from any government that we look for. speakingthat's greg vonnie quinn.

joe: time for a look at the investors. they won't have any say on how much of the pays its executives. the company said it will not be subject to pay on pay per vision of the dodd-frank act. it was put in place the 2008 financial crisis to help invest fors by requiring advisory votes on pay plans. convincedave the judge to proceed with the lawsuit after covert e-mails violates right.e speech the tech giant sued the government in april. with online privacy concerns on the prize as more customers tap into the cloud. rejected microsoft argument that wassneak and peek unlawful search and seizure of property. bloombergr "business flash" of. coming up what you need to know to gear up for day.row's trading

this is "bloomberg." ♪

scarlet: "what'd you miss?"? and nasdaqp, finishing up. all because the president promised. what was his tweet?

joe: phenomenal. scarlet: we'll look for that. terms of the immediate future, don't miss this. china trade balance data. joe: plus japanese prime minister, shinzo abe, will be meeting with president trump at the white house. scarlet: they did meet before. that was when he was president-elect. they have something to this time. joe: more substance. scarlet: don't miss this. release the consumer sentiment figures. the first look at first february numbers. all right. that's all for "what'd you miss?." thanks for watching. joe: have a great evening. this is "bloomberg."

>> you are watching "bloomberg technology." sessionsp senator jeff paid his first visit to the justice department as attorney general. he was sworn in after former

colleagues questioned him on civil rights and whether he could act independently of president trump after having campaigned for him so bigger sleep. republican senator susan collins is not completely sold on president trump's choice to lead the labor department. senator collins says she has not made a decision after speaking twice to andrew puzder and has outstanding questions she hopes he will address at his hearing scheduled for february 16. president trump will welcome justin trudeau to the white house on monday. the prime minister's office sets the two leaders will discuss the unique relationship between canada and the u.s. trudeau reportedly has conferred with world leaders on how best to engage with trump. app allowse people to search for crime suspects and missing children. it is a digital upgrade from a most wanted method the beer has