with baltic nations. until we can have a wild cybersecurity, we will be guarding our border with the military. the presidents, scam a day after administration official said it are crafting a new legislative package and their closing what they call immigration the polls. for the first time, the department moment security has probably a ballast the existence of potentially wrote devices used to track individual cell phone activity. this was an inquiry for democratic senator ron wyden saying it identified these of suspected unauthorized simulators in washington dc last year. devices work by tracking mobile intoes or tricking them locking onto instead of legitimate cell towers. real workers marched through paris in the first of a series of strikes that set the last

three months. the protest aimed at emmanuel macron labor reform plans that would deny future hires, early retirement as special pensions of existing workers. saidational rail authority only about 12% of trains were running today. africa, julius visited as of the late mandela. supporters of the economic freedom fighters celebrated mandela's life of anti-apartheid activism. as you have been south africa's later instead of jacob zuma. >> we regard him as our leader. he will continue to be our leader. we are here to say to the people we are hereica that

to pick this up. quest global news, 21 hours a day, powered memo and 2700 journalists and analysts. i am mark crumpton, this is bloomberg. ♪ >> live from the art, i am julia. and i am joe weisenthal. stocks taking back at least, guest of his losses in what has been a guest yesterday's losses. -- some of yesterday's losses. john williams was selected to run this new york branch,

charged with regulating wall street. this company to an unconventional road listening to this new york stock exchange, opening at $165 and $.90 a share area and and, a flashback to 2008, this is edit post financial crisis. as the new york fed benchmark makes its debut. we have all been waiting for the new leader at new york's fan. john williams is coming east to run the central bank. beginning on june 18, we are joined by bloomberg -- greatonal economics daddy with us. disappointed that this is another white male?

this is the lack of transparency. >> it is more the latter. the fed does have an issue which is widely recognized that it has been dominated by white males. the fed is about the representative of the country and responsive to a much broader group. janet yellen, the first female fed chair. she is replaced by the first former female fed chair. by another white male. john wayne says then a career fed person. it would have been nice to have someone from another background. >> on that list of things of why he is a controversial pick, his lack of financial market , maybe it is about monetary policy.

how big of a challenge to think that will be? >> it -- you're not right about the regulatory aspects. the new york fed puts monetary policy into operation by intervening in the markets everyday. you need to know something about it. he does have some knowledge about all of this, at least a 50,000 foot level. they have simon potter still there. is the executive vice president in charge of all that. jerry gordon came in, that probably isn't going to have a huge effect. the regulatory thing is a little unfair. he has bending because of wells

fargo's malfeasance. the san francisco fed doesn't regulate that. they only regulate the international units of the bank and i don't regulate a lot of the wall street banks except for small parts of it. there is obviously regulatory and cultural issues that have to be thought of. it is not as though he is the man that needs to crack down on the banks. >> is any sort of recourse or looking at changing the process at this point -- and mark the new york fed president nominated mike meza local board members, d.c., there is not a lot of external input here that is from outside of the fed system.

>> this has been an ongoing issue. this is a structure that was established over 100 years ago. it really is and in that prison today. if you look at the u.k. central bank, republican institutions, you don't have this mixed public ride. there and spoke to the banks and the district. that, you, data than have the final vote come from the governors. it is largely a process controlled by the district. there is a good argument that at least because of the imports of the president that that should be a pick that is appointed by the president of the governors approved by congress. arguably, all the president. you may want to restructure and say you don't have 12 banks.

this was something designed over 100 years ago. we are out of line with the rest of the world. mike: people would argue that is a feature, not a bug. presidentsfed back are not chosen by the banks in the district, the law was rewritten in 2010. the bank is have no say on who is hired. the classy directors represent the public at in this case, the head of the church committee, this is a live representative. a whole debate. a lot of people would debate this for hours over whether having quasi-private institutions is a bad thing. do you want everything subject to politics? it is an interesting question. >> the class b directors are appointed by the class a directors were appointed by the banks.

to send that i still have a role in this is not quite right. there was literally only one candidate. this is not a democratic process. quest we will get to talk about it. but he has voted against janet yellen and this is the high-grade. >> he never dissented. is it down the middle centrist. right now you put him directly in the middle. he is favoring rate increases this year. rightrk on the neutral suggests that he thinks that they may be getting close to what they need to do. he has been in these debates for seven years.

you're not really change in the carriage of the debate or who is contributing. what is your assessment of him on australia multi-policy? >> he has voted with the consensus and everything about. i'm not sure if there is one went back. it is important to keep in mind that this is rare. it is not the case that that means they would do the same thing when he is in a leadership position. yet the three leadership positions, but fed chair, the new york bank president and the vice chair is one of those three leaders. he may be presenting a different view than when he was essentially fallowing the leader janet yellen. >> joining us via phone, in baker. thank you both. coming up, spotify has been

spot on, one could argue. did a more than 10%. this is bloomberg. ♪

♪ >> what did you miss? spotify made its public debut on the newer stock exchange at 160 590%. it lost its alternative ipo. joining us now is bloomberg's ipo reporter alex to talk to us. as 169.k went as high what have you heard about the company about how please visit the process? my sourcesd out

about what a successful day one would mean. they said they don't have a lot of volatility for the stocks. they don't want a big pop-up or fall from the open price. it kind of war out through the day. they wanted a calm day, a day that looks like a run-of-the-mill trading day and they wanted an efficient trading experience. this is the point that will come back to potentially hot them over the concerns area talking to my sources, they said supply would be a potential issue. getting enough shareholders to thissell their shares in direct listing is something they were very focused on and trying to get those sales done before the opening price. at the open, only about 5.6 million shares changed hands. throughout the day is about 28 million. this is a stock that has more than 100 million shares.

there is no longer. settingll volume is this $26 billion valuation here for spotify and if and when the shareholders decide to sell down the road, they could inject a bit more volatility that i don't want to say. >> you talk about how it is risky and there has been a lot of discussion about this risky approach, is similar to google. the end, it didn't really matter to google, the business is the business and the stock is the stock. it eventually sort of evens out. at the beginning in my p rocky but at the end, it will do its own thing. >> that is the hope. the float will become an issue. the only listed 36 million shares. spotify has about 97% of the company. yes, ultimately a year from now we will be looking back and assessing the company on its financial worth and whether or

not it is sustaining a business model. you have to question the idea of whether or not this could be a distraction that the shares are volatile going forward. past wholly i've talked to ipo executives about. not getting the price right? that is something they wanted to get away from. whether or not they achieved a quiet listing, i don't think they did on this unusual direct listing route. for sure we will be watching to see if this continues to trade. >> you pointed it out, in terms of the initial price, it is different than what we traditionally happen if this were an ipo. the no lockup periods, it all comes down to supply and demand. i find it fascinating when you say there is a concern about a lack of supply.

it is a lack of supply, that can force the price up initially. did we lose her? i was getting so warmed up there. a lack of supply or lf of people willing to sell would be a real problem. you get a real pop in the price. is no prices covering in the betting -- beginning. >> in the end, it will balance out. >> fortunately, she is interested me. amazon? >> lots of volatility, lots of enthusiasm, we had amazon open up 2% and dip lower.

they said the company is not good and then meandering and then rent 2:45, a bloomberg report saying that white house sources are not planning on taking any action here. what really stands out is yesterday we had the stock down 5%. his reports that president trump does not like the company and they would make changes, nothing fundamental has changed. right now we have the market isrply higher cause amazon waiting on his averages. quest there is no other stock that matters. not just the wedding but the degree tours the sentiment around amazon seems to affect everything. changed, at least relative to my knowledge around amazon. we are going to get more information. is something interesting, this seems to be new but we have a great charge that mr. just that it is not quite as new as we want to thank. this is b2b 8827.

it's a bring that just the amazon market. after the election, if you recall, the bank stocks and tackled off a little bit. we had this tech selloff out of nowhere. some of the smart and early money, it is so unknown. >> it really has to do with any real fundamental concern about washington regulation at all or if it was just that we've seen such a run. ,> amazon was later deterred you saw facebook was really the catalyst with the cambridge analytica system. amazon caught up once the president started tweeting about it. but the another chart valuation for amazon, yesterday we looked at the valuation on

but the valuation for amazon, yesterday we looked at the valuation on facebook. amazon's valuation is still skyhigh. as much as the important of amazon's round the market intent of sentiment, we keep going on about the negative impacts of amazon. if there was any kind, theoretically, it should be good. >> that is what the markets would make sense. at enough there's a fundamental crackdown on amazon here. that is what it argues. coming up, we will talk tesla as it puts his foot on the gas to prove it is not going around anymore. we have a chart that you can't miss, this is bloomberg. ♪

♪ >> stocks have gotten cheaper. that's a selloff. that is what has happened to the s&p 500. if elected -- if you look at the price to earnings ratio then we are just about 16. on a historical basis, 15 is more like a long-term average. you're still looking at the cheapest for u.s. stocks. this goes back to the post-brexit. there were a lot of complaints. we have seen stocks rally throughout 2017. of course, the drop in stocks led to that drop in valuation. so they've been cheaper. will that draw buyers and? >> it seems that people complain about a spencer prices at the

top and then they get cheaper. it was like where were you back then? should we be talking about 200 and moving averages and lines going to other lines, this is an insurance that have been talking about for a while. i'm fascinated. this white line is bitcoin. the blue line is the s&p 500. both of the touch for their respective 200 and moving average, they were within days of each other. they did means that they point is a little more integrated into the overall financial markets, maybe bitcoin is some sort of pure expression of psychology. he wasn't all of those lines.

>> this is around $8,000 for mining. we are talking about vertical lines and they say it is the production for tesla, all of these rumors surrounding tesla and the cash burn in the quality. they have been watching what they can do for the model three. this was pushed to be more broad for the community and consumer. look at the yellow line, you can see that ramp-up in terms of what we have seen for the model three. in terms of the first quarter. we saw slightly less than expected. we had the broader fears that we have been talking about. you can see this to lower for the model x and whether or not it is stealing production

capacity. but you can blame or criticize elon musk for effort, having tweeted out the fact that he is back to sleeping at the factory. a year ago i asked doug to manage both engineering production, he agreed that has a needed engineering. we don't design cars that are crazy hard to build. right now, better to divide and copper. i'm back to sleeping at the factory. >> i have a theory that if a post with about tesla going bankrupt. he was sleep deprived. out of his brain pops these jokes. it was sleep deprivation. maybe the president has that. let's look at the major averages, less than four minutes until trading, we have stocks

near the height of the session. once again there is a big point swing for all three of the averages and the nasdaq is the laggard today. that is a bit of a shift. this is bloomberg. ♪

♪

what are you miss, this is after a choppy trading session. they're pushing through the top side. i am julia. guys i'm joe weisenthal and if you are tuning in live on twitter, we want to welcome you to our closing bell coverage. quest was getting with our market minutes. the incredible swing that we are seeing once again between the highs and the lows of the day, taking all three major averages up by at least 1% and while the nasdaq has led due to the downside in recent days, it was lagging today. today, the the case dow was the leader on the session with stocks like boeing, united health care, johnson & johnson helping lead the gains there.

this was in terms of the best-performing groups. energy with the leading groups today. saw all 11 groups in the s&p 500 fall yesterday, all 11 groups rose today. nonetheless, still, something of a comeback in today's session area in terms of the individual stocks, we have been talking a lot about amazon today. obviously a big swing in those amazon chairs as well. a session,t during the stock fell by as much as 1.2% and then recovered. the rhetoric from the white house and president trump's twitter feed is not translate into the reality that there any discussions to take action on amazon in the white house. spotted by with its direct

listing situation, the music 149.01 atservice at days end. it rose as high as 169 during the day. tesla browsing after the company announced production that was lower than his goal. it was just over two. -- 2000. analysts said it was not as bad as feared. it is a heavily shorted stock. when you ship -- see it bounce, you get short coverings. it was aof automakers, pretty blockbuster month. in the case of general motors, the company stocks as rise by 15.7% where it was just a gain of over 5% that analysts were estimating there. fiat and ford beat. what is interesting about gm is that the company will no longer report monthly sales, it is going to a quarterly model. these to get those monthly

retail sales from a lot of the retailers and most of them have abandoned that model caps on to the quarterly system. gm is following suit. we will see if they do the same here. >> let's look at the government bond market. the 10 year yield up to 2.78. we really saw the race should up in line with the market. we saw that rally late in the day and a 10 year yield shoot up. this is the classic correlation of people selling their treasuries. >> look at what is going on in the u.s. dollar. saw is the strength that we with some of the automated numbers and the sales beating estimates. that seems to be some kind of turning point. it was 210 7% higher. it brought it return to some kind of risk assessment, that risk demand in the session. you saw that demonstrated in the

dollar-yen moving higher. it really has been thrashed around. relativee this weakness of the dollar versus some of the commodities. it ties to a joe will talk about in a few seconds. there is some of that relative weakness of the dollar. let's look at what is going on as far as traders concerned. the headlines are coming out thick and fast. of course, we have that report yesterday. they are trying to reach some sort of full america within two weeks. will strengthen the next him and the canadian dollar. that continued in the session today. you can see this hired by a tenths of 1%. l: oil got hit pretty hard. oil got hit in that equity

market. it gained a little bit today, a little less than 1%. gold and silver both had a really good days, yesterday, taking advantage of that spoke there giving up some of that today. gold was still hanging in there. those are today's market minutes. 's market action, let's bring in dan. we have been talking about all and in ourlity option segment earlier, kevin kelly was here and he said something interesting. he don't we would see italy was smooth this was season began. the expectations are pretty high going into this reporting season. what do you think? will we see some level,? dan: smoothness is a funny way.

aboutody was complaining how the rally had been so smooth. now we have lots of volatility. we don't like it now. we wanted it. i think the markets are in every transition. 2017, ie tremendous think it is natural that the first half of 2018 has been a i thinkn of that area the stock market is going to recover, continue to rally and i think it will be a little bit more smooth. i'll agree with that. you characterize the market in appeared of transition, what catalyzed the transition russian mark euphoria, basically up every day to february 5 and sixth of 2018 where suddenly people are worried about inflation and now

facebook and amazon, how does that happen? -- dan: the two men asset, bonds versus equities. multi-decadein a bond bull market. in the last 10 years, it was field by folding interest rates that were exceptional lows. -- that process is unwinding. this is well under 500 basis points. they are targeting 100 75 basis went over the next three years. this is the changes interest-rate. that is coupled to the strength of the economy which is coupled to rising inflation expectations. those three things are toxic to bond investors. the average 10 year will lose a percent for every hundred basis point.

the fed is targeting 175. >> the causation runs from fundamental fed and eco-inflation through the bond market and then through two stocks where that manifests itself in higher volatility. >> exactly. the stock market has its own fundamentals. this is the performance of companies and industries and the marketplace. i think one of the things that makes a very good buying opportunity for equities is the economy being as strong as it has been. the effect of the tax cuts is always just starting to be appreciated. it hasn't thought through it all yet. meanwhile, we are getting to interesting points in other parts of the world, europe, asia. it is a very interesting time for equity investors to get long or longer area i think bond investors and real estate investors have to be

a little careful about what they are doing in those markets. >> bond investors are not buying into that story yet, they're not getting the theme. when you talk about the inflection point that the bond market is concerned about, people don't yet believe it. dan: that is correct. that is a classic sign of a bubble in a market area when people don't believe it or are very complacent. this is in the bond market. i think what will trigger this is the big change in buying patterns. they will be losses in the money market. i have been saying this for two years. bond returns have been failing badly in the middle of 16. these are the relative returns in bonds, they have been poor relative to the games.

when the bonds change absolute losses -- want to look at the earnings yield versus the 10 year yield. we have that on the bloomberg. this is the s&p 500 earnings yield. in blue andield is then you have the gap between them on the bottom. that we are going to continue to see 10 year yields climb? once again, we will see these lines cross? basis, that gap is very wide right now. the historic averages wally 50 basis points. 175 -- the fed is telling us is coming from bond yields going up. the other hundred 25 comes to close the gap russian mark i don't know.

it is possible it comes in and we markets rallying. on the flipside, you have global bond markets and global interest rates and one of the reasons the u.s. rates have not yet risen super dramatically, we had a very successful treasury option. it is because rates in europe are still much lower than they are in the u.s.. the process is pretty clear, we are moving to higher rates based on stronger economies and inflation. banks are tightening, not using any more. and some point you will get a reflection point for the bond investors are it >> great to much,ou on, thank you so ceo and cio. news, police in california have received reports of an active shooter at youtube's headquarters.

police rosetta that was speaking be a telephone. we have their the detail. i will report this once more. it will resume fourth of an active shooter at youtube. fourth of an active shooter at youtube. if we get any further headlines, we will bring them to you. from new york, this is bloomberg. ♪

♪ >> continuation of that breaking news. san bruno police have received reports of an active shooter. you're now looking at live pictures of san bruno in california. clearly several police cars on bail drive.

you can look at seven or eight police cars. they are saying this is a very active seen, this is a high police presence. they are confirming that they received reports of a shooter at the youtube headquarters in san bruno. any further headlines. there are live pictures that we are showing in there. , a seemingly high police presence. people are focus on what is going on. the office is in lockdown. any further headlines and we will bring them to you. live pictures right now. they received reports of a shooter at the youtube headquarters in california. let's get to the first word news with mark crumpton.

mark: unlawful and unfair. that is how they describe jump administration proposal on the census board. 17 states including new york and six cities and the district of columbia sued the federal government saying the addition of a citizenship question is unconstitutional. someonerospect of saying i am from a trump administration knocking on your door to as got citizenship would provoke real fear. not a matter of trying to be accommodating or not accommodating to immigrants. the constitution requires us to count everybody. the justice department says it" to defending the reinstatement of the citizenship question and the commerce department has said the benefits of obtaining citizenship information outweighed limited potential adverse impacts. john is want to do it will retaliate if the u.s. imposes

tariffs because of alleged violations of intellectual property rights. -- trump administration china's ambassador to the u.s. is that beijing will respond with the same intensity. a global chemical weapons control body will hold an emergency meeting tomorrow do discussed the poisoning of sergei skripal and his daughter. it a short mary session. the u.k. blames russia for last month attack on british soil. dozens of buses today line a searing highway, ready to take a new group of rebel fighters away from their stronghold near damascus. this is the last remaining and largest insurgent group in eastern britta. at least some of the families are heading to the rebel held

north as part of an agreement with the syrian government and its russian backers. global news, 24 hours a day, powered by over 2700 journalists and analysts in over 120 countries. i am mark crumpton, this is bloomberg. this is not been seen since the financial crisis. if you happen to the bloomberg can'teck out to a 35, you see the spread on libel -- it has climbed to one than 30 basis points since january 2 around 59 basis points. we will max out this chart. for anyone who is watching that goes i think i remember back in

the day, though as being a problem for some reason, it's pointless as simply as you can what this is. >> what it is showing us is a credit risk over a risk-free rate. what does tell you is what kind of credit risk exists in the market. but why is widely interested in this point? it is not because banks are in trouble. it is not the symptoms of the financial crisis rick perry, it is a structural issue. this is seen as a measure of counterparty risk. what you are saying is that there is a lot of things going on. >> this has created is very fast widening that we are seeing. in first of which is february when the government resolve the debt ceiling and cap it passed that large

spending deal, everyone said oh my gosh, the deficit will widen. with that came more bills. this way we could get back to levels pre-debt ceiling set of treasury issued more than $300 billion from february 8 until the end of march. that is a lot of money to keep flooding into the market. , it widened. andle are now looking ahead saying what does tax policy mean for the front and? >> they're looking at if companies are repatriating money, this means they are taking cash away from osborne banks were the recipients of this. now, everyone is anticipating that and that will keep the spread. day after going up day after day and a positive little bit, is there reason to think that it is now settled into a new zone? do people think it will go higher? right now, for the second

quarter, treasuries should be taking some of that supply off the table. you have cash management bills that are usually issued every winter on february, they mature around that tax deadline. you have paid out and treasury bills coming. if treasury bills ablaze the big driver here, that should force them to come in and benefit. however, people are thinking if this days at these levels and the biggest russia problem in the short-term funding markets. alternativesre been discussed but that is a whole other issue. alex harris, figure for joining us and breaking it down for us to appreciate it. issue, let'shis bring them in.

>> you have been right about a lot of this stuff, similar ideas lately, do you think this is a benign thing? >> right now i don't think there is a structural issue. they are building it back. it is not issue of the debt per se but what happens to the treasury. when the treasury issues that, it is naturally drawing out results from the system. there should be no stressing the funding markets. that is when the problem comes. the fed is trying to maintain this. though show up and i interest rate.

the fed would have to accommodate that. the suspending my like crazy. the monetary policy seems kind of this. >> will at the treasury issue and what is happening with the treasury, they're looking at one part of it. if you look at the supply of dollars or the creation of new dollars, that is the balance seat. that automatically getting a deposit. ofs is the overall rate global supply dollars.

we have a chart of that. that is what has been happening to some extent. >> pages apply and demand. >> you could see a pop in the strength. talk about the prospect of seeing dollar strength in the second quarter. they tend to tie it in some , economiesa deficit tend to look for currency strength or weakness time to it. supply and demand could see a pop in the u.s. dollar. >> it is also the element of looking back at not seeing any relationship between u.s. deficits in the dollar. the relationship between the long-term relationship between dollars in other currencies, this is u.s. growth.

cap what the other way. the rest of the world went faster. that because of stimulus and tax cuts, it is ashley 80's and reading. the others that are succumbed on more than the u.s.. this is for the dollar strength. if you're talking about things, that there is lower credit growth, that would eventually be a negative thing for economic growth. >> in this situation, what is happening is where giving a big tax cut. companies are plus with cash because of that. they don't need to apply for credit. the second thing is consumer spending is being driven by if you look at auto fill. it is being driven by the top end. it is being driven by people with wealth. didn't need the credit. they have the cash balance. >> there is another pillar of the story you have been writing

about. we see slowing dollar creation and to receive slower credit expansion in china. put it all together for us, what is the big picture significance for the economy russian mark -- economy? >> when the economy was like it was getting into trouble, there were two key pillars that brought it out, the other was enormous china's stimulus. u.s. dollar started to weaken that produced the pressure on the emerging market funding. critical for very the sport of the pillars of the global economy. you don't want to see both of them if you want a global expansion to get going. they're very critical. >> overall, really quickly, economies looking good?

>> 2018 is looking good. outside of something happening in the financial markets. >> these elements are starting down the road? deliberatelyina cutting its credit. as opposed what they're doing in 2014 and 2015 when they were outflow, they the were doing it to liberal is to some extent. family against any words. thank you for your time. i apologize. of next, teslas model three russian numbers were good enough for the market but now the focus turns to the company's debt, at least in some quarters. from new york, this is bloomberg. ♪

julia: you are looking at live pictures of san bruno. reports of received an active shooter at youtube headquarters. the location is 11 miles south of san francisco. you are looking at live pictures right now. twitterseen reports on that the headquarters is in lockdown. what you are looking at is headquartersg the and being searched individually by police. that would attest to the fact that the entire campus at this moment is on lockdown. we do have mark bergen at the

san francisco bureau and joins us on the phone. just explain to us what you have heard right now and what we are seeing as far as the media coverage in san francisco. mark: we don't have a lot of information right now. the company has not commented. parent youtube's company, has not said anything to their employees. we have seen people post on twitter saying they are safe and evacuated the building. recently theyd are responding to the active shooter and advised people to stay away from the intersection. joe: just for context, youtube's headquarters are totally in a different location than the main google office. mark: they are closer to the city. san bruno is closer to the san francisco airport. beat is where youtu operates independently.

julia: what you are looking at now is live pictures of san san francisco. an overview of youtube's headquarters. we were just showing you pictures of individuals leaving the campus area individually being searched by police on the scene because of an active shooter at the youtube headquarters. scarlet: we don't know if anyone has been hurt, if -- how many shots were fired. there is a lot of information we don't have. do we know how many people work at those headquarters? if there is a lockdown and evacuation, how many people would be uninvolved -- involved? don't.e youtube does not disclose any information about their staff. scarlet: hopefully, we will get more details on this soon. don't.

youtubethank you for keeping us. let's get to the other first word news with mark crumpton. mark: president trump says he wants to use the military to secure the u.s.-mexico border with his promised border wall. speaking at a lunch with baltic, the president said he already discussed the idea with jim mattis. he says he has been frustrated with the lack of progress of progress of his presidential campaign. a caravan of central american migrants has been halted in mexico. progress of his presidential campaign. ait was meant to draw attention to the right of migrants. threatenedrump has mexico and ongoing nafta negotiations over the country's border enforcement saying that the caravan was on the way to the u.s. border even though it was never border equipped tot there. scott pruitt says there should be new emission standards for cars and trucks.

regulators say timeline put in place by the obama administration was not appropriate and set standards to live -- too high. >> this will begin a process to determine what those standards should be. what is conclusory is what took place before, and has been look at various issues on how we should set the standard, they need to be updated and evaluated and revised accordingly. mark: the national highway traffic administration will work to come up with new standards. president trump does not the only one unhappy with china's trading practices. in an interview, imf official david lipton said officials in beijing have acknowledged the need to change certain trade policies that were enacted at a time where china did not have the same influence over the world economy that it does today. >> the time has come for them to address. they too need globalization.

that is how they had this spectacular growth and how they will have a great future. they need a globalization that is durable and that finds a way to find free and fair trad e. mark: lipton called the growing economic tension between the u.s. and china unfortunate and he urged continued dialogue between the world's two biggest economies to help increase market access on what he calls a fair basis. global news 24 hours a day powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. you are looking at live pictures of the san bruno police force responding to reports of an active shooter at youtube headquarters. it is around 11 miles south of san francisco. what you are seeing are police on the scene surrounding the

campus of youtube's headquarters, individually searching people as they leave the campus. we have been watching this now for several minutes. we have very little details. this could be a false alarm. we are following what is being said on twitter as well by people who say they are safe. some reportedly barricading themselves into rooms because clearly there was some concern about reports of an active shooter on-site at youtube's headquarters in san bruno. the sans the response, bruno police department responding to reports. we are trying to figure that out now. they are dealing with emergency calls only for now. at the moment, it is an immediate response to calls of distress from the youtube headquarters in san bruno. those are the live pictures we are showing your. >> google is saying it is

coordinating with authorities on the situation. very little information, as always with developing news situations. >> tweets, butandom until we can verify the information, we will not share that with you. at this point, there is a lot we don't know. when we find out verified details about this, we will share those details with you. julia: you are looking at live pictures of san bruno. gatheringowds now, the media outside of the youtube headquarters campus in san bruno. any fourther headlines or updates, we will bring them to you. this is bloomberg. ♪

julia: just to bring you back to speed with the breaking news story.

you are looking at live pictures of what has been reported to be active shooter at the youtube headquarters in sanhe was recene headquarters. thank you for joining us. we have been pointing active she headquarters in san bruno. this is about 11 miles south of san francisco. lucas shaw joins us now. out details are incredibly scarce. bring us up to speed of what we know at this stage. lucas: that this point, we have seen postings on social media from some employees saying they have been evacuated. bring us up to speed of what we know at this stage. they heard shootings. one posted about seeing blood somewhere in the facility, although we have not confirmed that with any officials. i reached out to some people i know what the company saying they are safe and have been evacuated. i believe the local police have confirmed there was a shooting. they said active shooter, we don't know if she or he has been apprehended yet.

the latest on that or if anybody has been wounded or, got printed, -- godthe latest on th. julia: we have to be careful about what we see on social media. forbid,right now, information incredibly scarce. you are looking at live pictures from outside the san bruno campus, the youtube headquarters. we have seen people coming out individually with their arms spread wide and being searched by police on the scene and investigating these reports of an active shooter. you can see a policeman searching individuals coming out of the campus. joe: a lot of the shootings we have seen in recent times tend to be places, so-called soft targets, schools that are not particularly fortified, not a security. if you think of a corporate campus, typically, modern

corporate campuses are secured. when you went there, what sort of security did you have to go through to get in? lucas: the security at most youtube offices is similar to what i would say you would see at most of the media technology companies i have been to where there is a front desk where you need to be checked in and then you give them your name, who you are there to see. they try to have you sign a nondisclosure agreement. one thing that would be different about youtube in san bruno is that you can walk win. should you want to run by the front desk, it would be possible. there is not like a median blocking people. is the cafeteria. to get to the office is, you have to walk to some of the doors. on the second building, you have an elevator. i would have to know more about how the shooter got in.

there is not one central meeting place where it would be easy for them to an shoot a lot of peopl. offa: can you walk on and campus without actually being restricted in any way by security guards or fencing, or do you have to go through some form of security to get on campus? lucas: you have to walk by a security desk to get anywhere significant on campus. julie: just to be clear, this is the main -- it is more than one youtube office. this is the main youtube campus, correct? mark bergen told us earlier that t google does not disclose how many people work at the unit. do we have a ballpark of how may people might work there? lucas: they are youtube offices all over the world, but by far the largest is standard of because that is where a lot of the talent is. the estimate i would provide would be a couple thousand. youtube definitely has thousands of employees and san bruno is

the largest. if you think about netflix, for comparison netflix now has a little more than 5000 employees. maybe 2300 are in los gatos, which would be the equivalent of youtube san bruno. 1500 in los angeles and a few hundred elsewhere in other parts of the world. youtube is similarly centralized, most of the engineering talent is in the bay area. the have an office in los angeles. people in new york for advertising, and different offices around the world he goes it is a global service. julia: you are looking at live pictures of youtube's headquarters in san bruno, around 11 miles south of the san francisco area. there have been some reports of police active on the scene after receiving reports of an active shooter at the headquarters. we have been showing you for the last 20 minutes, individuals

leaving the campus which clearly looks very deserted. individuals being searched. you can see that now on the center of your screen. a few moments ago, an individual holding a leash with ag, dog on it, to give you the sense of the atmosphere at the headquarters. people putting their possessions down, removing hats before being searched on an individual basis. clearly right now, this is an active situation. very little detail. i would say, lucas, we obviously don't know much at all about what is going on, but police are being very cautious. we are now several weeks out from what we saw in florida. what is your sense of increased security overall in silicon valley as a result of that? going back to what joe was asking you earlier. lucas: i don't think there is a direct correlation between what happened in florida and at these

tech companies. we have seen a pretty steady increase in the number of mass shootings in the united states in particular over the last several years. some companies take them more seriously, but what tends to happen with industries is they don't get that much more serious into what happens to them. the music industry just went through a similar trauma where there were shootings last year at a couple of very significant concerts. one in manchester, england. one in france. and then one in las vegas. that has forced live events to reassess how they are protecting themselves against mass shootings. imagine similar events will play out with regard to silicon valley. these companies all have strict security -- probably more strict security in terms of intellectual property than actual people. you would not think of a tech headquarters as a ripe target for a shooter.

julia: great point. once again, we are looking at the intersection of bay hill where we cherry avenue can see the headquarters of youtube. as the camera panned out, you can see several ambulances on the scene. where we can see the headquarters of youtube. no reports of any injuries, any further details as far as who actually has been involved in this. it is clearly a very high and active police presence. you can see a fire engine at the top right of your screen. multiple emergency responders on the scene at this stage, clearly no moving traffic around. this situation very much on lockdown. whether it is the campus or the surrounding roads, as you can see. this is live pictures of san bruno in california where police, the san bruno police are responding to an active police shooter reports -- actives of an active shooter. julie: we just heard from our

news desk in new york that there was a tweet from the atf san francisco division is also part of that response to that reported shooting at the youtube headquarters. i just want to mention a story we ran in late march just to show that all of the social media companies are getting increased scrutiny. there was a story we ran that youtube quietly had more restrictions on videos involving weapons. youtube apparently was planning to ban videos that promote or link to websites selling firearms and accessories including bump stocks. we don't know anything about an individual or individuals who allegedly would have perpetrated this, but youtube like many other social media companies sometimes has been controversial for various groups. julia: you are looking at live pictures.

we continue to stream what we assume is employees being searched, being patted down. lucas, once again, take us through the headlines of what we do know at this stage and what we don't as far as this incident and the response of the san bruno police to what we are seeing on youtube headquarters in san francisco. lucas: we know that there has been or at least was an active shooter at youtube headquarters in san bruno. employees have been evacuated, some of whom have been searched and checked to make sure they are ok. there are a number of law enforcement officials and ambulances at the scene. there have been reports from employees about a shooting and potentially about injured people but that is yet to be confirmed if there is anyone injured and how many people. we don't know, i have not seen

-- maybe other people have, the identity of the shooter. as far as i know, we don't know if they brought him into custody. at the moment, there is a lot we don't know. julia: very little detail. lucas: to the point of what you were discussing earlier. i imagine an element of the story would be about the role some of these companies have played in hosting videos and how gun owners may feel about the. but at the moment, we will keep the focus on -- julia: too early to speculate at this stage. we are looking at live pictures. a huge police presence now that youtube headquarters. clearly, some organization. we need to go back over the pictures we have seen. you can clearly see no traffic, no moving traffic surrounding the headquarters. presence,olice car

ambulances,clearly, the emergeny presence, ambulances, emergency responders on the scene. we are looking at a backing up of traffic running into this area. responders preventing traffic flow, trying to get as many of workers out of youtube's headquarters. you can see individuals being searched. julie: thank you so much for giving us some perspective and we will keep you posted on any further developments. this is bloomberg. ♪

julia: a continuation of the breaking news story. you are looking at live pictures of the san bruno area. we are looking at the headquarters of youtube where emergency responders and police received reports of an active shooter at the youtube headquarters. we can currently see what looks to be police climbing steps

towards that campus. we have watched over the last 20 to 30 minutes, individuals that are leaving the campus being individually searched. the entire area seemingly on lockdown. you can see ambulances there. we have been watching the live pictures and there seems to be no real movement as far as vehicles is concerned. there is a lot we don't know at this stage beyond the fact of reports of active shooter. julie: we just got a headline from nbc that i am seeing across the bloomberg terminal. it says at least seven people have been sent to hospitals after the you tube shooting. this is according to nbc. this is the first report we have gotten about any potential injuries, how many people have been involved. at least seven people taken to the hospital after the you tube shooting. injuries orntext on

injury level. brad stone joins us now and he is from that area. it are a some of the headlines that we have been going over. what are you seeing on local media? brad: we don't know a whole bunch. we are seeing the same images you are. my guess is they probably have around 500 to 600 employees in san bruno. it is about three minutes away a mainl camino real, thoroughfare of silicon valley. we have a corresponded other way down. we have reached out to local hospitals. we have arather than that, infon right now is very scarce. julie: you have covered the technology industry for a long time. we were talking with lucas shaw earlier about some of the

security measures that these companies have in place. he says in some cases, it seems as though they are safeguarding their ip, whereas the physical plant of these offices do not necessarily have a high level of security. is that what you found? what is your sense of security level? brad: i have been down to the youtube offices many times. lucas: it is not easy to get access. there is a guard desk. you need to have either a badge or be invited to enter the premises. look, there is only so much you can do. i don't think the security at youtube or anywhere is prepared for this such as a situation. we don't have a lot of information. we don't know whether it was a stranger off the street or someone, perhaps a former or current employee. we don't have any information. having been to youtube offices a

number of times, security is formidable. not just anybody can walk in off the street. julia: just to bring you up to speed, you are looking at what is clearly now the headquarters of youtube on lockdown. areae looking at an empty where there are area where there are benches for people to eat or relax outside. no sign of any employees outside. speed, you are looking at what we have been watching people leaving on an individual basis and being searched. police still very much surrounding the campus. police cars, ambulances. top tonue goes from the the bottom of your screen. you can see clearly the situation ongoing. active scene right now. we have been watchingthe san bre responding, trying to figure out the situation and dealing with emergency calls only. brad, once again, reiterate the

headlines that we have very quickly in the last few moments. brad: nbc reporting that seven people have been sent to local hospitals. many reporters on twitter and some of our contacts, that the headquarters has been evacuated. a massive police presence around that pair of you to buildings. right now, very little information about who the shooter is and what the motives may have been. julia: we will continue to follow this story. brownstone, thank you so much. julie: we will have more developments. from new

emily: you are watching bloomberg technology live. we are covering breaking news from youtube headquarters in san bruno, california where employees have reported there is and was an active shooter.

police received multiple reports of a shooter at youtube headquarters. we have been monitoring this story for the last hour. our senior executive editor brad stone is with me on the set. i want to walk through a little bit about what we know. i saw a tweet from a product guy at youtube saying an active shooter at youtube headquarters. saw people running at my desk. now barricaded inside a room with coworkers. he said, safe, got evacuated. i did speak briefly with the head of youtube communications who tell me they are indeed safe. we are getting information in piecemeal. we have seen some reporting that people have been taken to area hospitals. what do we know? i did see one report from kron that said one