away from the shooter preventing more deaths. travis was armed when he was taken into custody. the white house is north korea must show concrete actions before any sanctions will be lifted. recently it would suspend nuclear tests at intercontinental ballistic missile launches. the white house press secretary said we are not going to make mistakes from previous it ministrations and we are not going to take north koreans at their word. people, of500 central american migrants pose -- protesting are scheduled to arrive into one of this week demanding better treatment and plan to seek asylum in mexico or the united states. president has been tweeting his concern, and he said he instructed homeland security to bar them from coming.

if they enter the country illegally they face prosecution. forces acted in self-defense during bosnia's 1992 to 95 conflict. he called on judges to overturn and hisiple convictions 40 year sentence for masterminding atrocities through the war. they argued prosecutors and trial judges committed legal and procedural errors during his trial. ae duchess of cambridge left london hospital and handed home with their newborn son. birth and seven hours later the posed for photographers before going back inside. the royals emerged a few minutes

later and got into a waiting car. the elder siblings prince george and princess charlotte already had gone home after a meeting with their baby brother. day onnews 24 hours a air and on to talk on twitter. i'm mark crumpton. this is bloomberg. ♪ julia: live from bloomberg world headquarters in new york, i'm julie chesley. scarlet: i'm scarlet fu. >> i'm joe weisenthal. julia: the stocks are choppy. the dollar is higher. -- what'd your miss? scarlet: the treasury

the highest since 2014. at what point does this cause a problem for investors? and a battle of traffic acquisition costs when the parent company of google reports today. and a con arrives today in his y visit inhree da washington. --ia: the 10 year yield let's get more and allison what we are saying. let's bring in davis. great to have you with us. can you explain what we are seeing as far as the individual markets are concerned? the signals are conflicting.

>> of the question i am asked a lot, at what level does the 10 year yield cause a problem for equity markets? ideahere between i have no and it depends. the difference now versus january is significant. in january, you had trade and tariffs wars starting to increase. 20-year-old,ll -- they were increasing. fed hikes, now you are seeing 10 year yield up. bond volatility still very low, which should not be that big of a deal for equities. a question you would ask my why aren't stocks higher. i would say that is because the short end of the curve is higher. joe: here is something i find

confusing. if the yield curve is flattening, what does that mean? .ut the market has done great big volatility spikes, early february and less so. during theo be steepening point. >> you are exactly right. if the yield curve is flattening because the fed is moving, and there is less risk, at the same time there is no long-term inflationary worries, that is a positive. if it is flattening because you have near-term bad inflation and longer-term weak economic growth, that is a bad reason. >> so it is goldilocks. nothing that would cause people to sell off the losses.

>> we were talking about how we have good reasons, looking at commodity prices as a push for the inflation story. if they start to stall out, and they start retreating with that lead to a retreat in the yield? >> not necessarily. maybe on the short end. if commodity prices are declining, you have more firepower for the consumer. real wage growth would not hurt. you would see lower commodity prices. that could be a positive. if they are associated with the demand growth problems, like the issue of china going into recession than it is a bad thing. in the context of what we are talking about it would not be a bad thing. julia: you will pose the

question of why if the rates are rising for good reasons, we are not seeing a positive in earnings. we are seeing greater volatility concerns about the tech sector. that is do you think happening? >> i would go with the latter. much of the positivity has been discounted we rubbed took this everybody knows earnings are strong. it has been screened from the rooftops. we had no volatility discounted. now we have more potential volatility. that is a negative for multiples. you are going to have a long consolidation fee.

the starting point of this year for the market was less than ideal. >> what about the real impact? above withhtening the federal reserve have tried to do. >> that gets into the question of what is heading multiples. for a mistake. the fed never intentionally makes a mistake. intentionally out there trying to cause something. they have a view on the economic growth outlook. sometimes those views are wrong. mistake,tial for a ,hich might be happening now raises the risk of a premature recession. very simple.

joe: what do you see now is the underlying inflation dynamic? how close to the fed in terms of getting how they share inflation? >> they are more right than the market gives them credit for. weekally driven by productivity. my confidence around that is limited. that happens to be my forecast, which is in line with the fed. their view is 2% against core inflation. real economic growth. i think that is about right. relative to what we have seen, a worst -- worst backdrop for multiples. julia: when do they get out? vislet: what do you and

investors? how do you answer them? >> if they want to talk for hours over a few drinks, i would get into the whole thing. it depends on what economic growth is. , i would sayual the 4% rangeup at when you have to worry. julia: what are you telling them to do? >> right now cash and short-term great change to equities. two things are likely to happen. the next year and a half to two years -- the short end of the curve is very attractive. view, iarket point of do believe in higher inflation. time: we talk all the

about where the 10 year could go. what about the short end? the march has been relentless. obviously two-year yields look attractive to recent -- but if that were to continue that would not be that great. where could you see it heading to? thef the fed rates are in two-year range, maybe a little bit higher. what is positioning lie? >> bullish. julia: how bullish? people are telling us this looks great at this moment. i am wondering what the situation is. >> a lot of people have talked bearish lee. a survey of investors was very bullish. the ski was much higher. 20% higher over the next year

versus little flooding over these levels. that is bullish. scarlet: thank you so much. coming up, and trump denied spending the night in russia during a trip in 2013. but if you look at flight records they show his jet landed on a friday and left on a sunday. so what happened? we get the details, next. ♪

scarlet: bloomberg news obtaining flight records from the president trump's trip to russia in 2013. let's speak to the reporter who wrote that story. this matters because the president has given james comey an alibi for why this one report could not be true because he never spent the night there. flight records show you was in russia. tell us more. >> it is interesting. we have already known based on social media postings that donald trump definitely was in russia for two days, for the miss universe pageant. we have granular details on the plane he is said to have been on, his las vegas partner's plane.

there are reports this was the plan he flew on. we got the flight records to see when it took off, and all the way to win that plane arrived back early sunday. three days later at newark airport. everything in between is details. with the first time we know that this plane that he was supposedly on left at a certain time, left in moscow at a certain time, and came back at a certain time. crystal clearis that he was there for more than just one day. joe: just to be clear, tell us about the flight records. this is public information. >> some of it is public. some of it you have to go through data brokers. we paid one of the commercial flight services for the records

pertaining to this number. they came up in good detail and matched what we had heard had been the case with this particular jet. me was that hell got there in the morning. in a way this partially vindicates what trump had said, at least on the night of the pageant, only a few hours after the party the plane took off before dawn. it,e misremembered half of that does matchup. >> this is confusing. there is more than one plane. do we have concrete proof the president was on the plane we think he was?

>> the flight records, it doesn't say who was aboard the plane. if we follow this, we jews just the ones-- we do just that were owned by trump the agoe is a book from a year that said this is the plane that trump flew on. if we follow the plane plus the sourcing from those, they could conclude it was on that plane. >> thank you for that. we're going to move to the stock of the hour. julia: it is macron. -- scarlet: it is macron. -- micron. the semiconductor story continues to go bad. >> this is interesting.

initiated on this call with a celebrating. he sawe is out saying weak demand. he reason this matters, when was there, micron was his first top pick. so he is a x on the stock. look at this powerful chart. bluewe are looking at is back in 2014. we see the big dip. we are looking at spot pricing. .e see it is 6:00 the question is whether they are going to catch back up. really interests me is

last year we were talking about this incredible sustained bull market without that typical cyclical thing we have seen in prices. >> it is such an interesting story. it has everything to do with the cloud. is this different? there is all this extra demand. it is more expensive. if the cloud is going to encourage the enterprises, maybe it will be different. charts, have seen the 50% of the semiconductor index reporting, -- >> we have a chart for you. this is an interesting chart. this is the stock. we see a nice uptrend. lots of congestion. nobody is certain.

,, we sliced below the 50 day moving average. we are now moving to that average. this is called a bearish broadening. intel could be a big tell of whether -- what way it breaks. otherwise we could have some bearish volatility a ahead. scarlet: abigail doolittle, thank you. those chip companies trending lower. ,peaking of earnings coming up we have alphabet. it is setting the stage for a big week.

demand for advertisements expected to be strong. traffic could take a bite out of revenue. we have the numbers you want to the attention to.

julia: we have been asking for the catalyst. what will it be that allows equities to rise? european equities have been outperforming their u.s. counterparts. there are some people who are saying look, the rally we have seen is showing signs of fatigue. the stoxx 600 has surged 3% this week headed for its biggest gain since september. what you are looking at is the -- is it unable to break that today moving average. that is the peak since february. we have had similar issues as well. you can see it dipping down below the moving average, then that big break in february alone

, we have four straight weeks of gains. a similar story exists for the stocks, the dax and the 100. that is a more positive signal. mario draghi, he is more cautious. >> so many crucial things to watch. one of my favorite functions on the terminal, dg and then function, global macro monitors. it creates this map of market movers. it shows what is moving up and down. aluminum, and silver. all getting hammered. is the weakening of those sanctions. we know how those sanctions against russian suppliers have this huge effect.

there has been such an incredible rally, one of the craziest couple of weeks. any time they may be softened, pretty big selloff today in those industrial commodities. scarlet: from anxiety about commodities to anxiety about earnings per cap about is confirm -- earnings, alphabet is reporting earnings after the bell. revenue, $24.27 billion. it has been changed to that. there will be focus on cost, especially because it caused an earnings missed last time. this is the revenue google has two partner websites diverting to google partner websites. 24% of total ad revenue, you can see that it was less than three and a half billion dollars.

the cfo says the increase has been linked to alphabets higher growth. >> this is bloomberg. ♪

♪

julia:. you to closing bell coverage. scarlet: we are awaiting alphabet results. results, and is the questions about data privacy, people wondering if this breaks the momentum the tech industry has experienced. sweeney.e paul

that is my dollars and $.30 that i was ordered for and we got .3.33 print

one of the things going forward is the seal has donated jobs is coming on board and managing the cost, but just operating expenses but the capital expenses is welcome and some of the moon shots that founders have been having to spend money on. n example ofe a district getting ahead of itself in terms of the expense growth. julia: talk about the classification. account investments like uber, that is going to be hitting income statements this time around. and you also have changes in nest. have the revenue traffic of $24.9 billion, almost 25. the number has been moving around in the last couple of days. when we are looking at revenue,

that is higher than anticipated, and eps is higher than anticipated. as juliathe revenue, mentioned with other classifications. 4.5 billion dollars, i don't know if you can't compare it to anything else because of moving parts. >> we see some good numbers are coming out of the company and their quarter. the question is what do you think the impact is of some of concerns.ey -- piracy are you seeing anything from advertisers in any pushback on some of that data he typically provide that you may not be able to provide about customers going forward. joe: go back to the privacy question. what is the main anxiety there? >> the advantages of advertising there is a they can provide

advertisers with so much user information. you and i and other users provide so much information about ourselves. that information is very valuable to advertisers and something traditional media like broadcast and magazines generally do not have. that is what makes digital internet advertising so attractive. alphabet area of business that has come under scrutiny is youtube. whereas most of the company business model is different in terms of needing to moderate, youtube had a lot of issues and the knee has been more on moderation -- the need has been for more moderation. where do they want to be with that business? >> there is no stopping you to. internet advertising on video was the best in advertising, so they are the best online video player. julia: this is 24% of revenue

which includes partners like apple. investors like in the other revenues sales. that theo bear in mind reclassification of the nest business is adding to these numbers. >> one thing that benefits google is the cloud. has been a big plus for amazon and google as well, their cloud business is growing quickly and it is a very profitable business. julia: and looking at the number of analysts expecting those to be flat or down to the cost yet mentioned. whether it is traffic or content acquisition, and the regulatory angle. is going to mean pressure on margins. the streetou look at consensus numbers going forward, that is getting models into the

story. with a think the street is going to in the conference call today is there even a greater step up -- is there something the state has to discount in a higher level of spending? that is why the commentary for the management team on the conference call is going to be particularly important. scarlet: some because is changing is the way that it starts measuring the cost per click. it says is going to measure impressions and cost per impression. this is all network revenue. what does this mean for someone who looks at this company and is trying to gauge how effective the different third-party sites are and how effective google is an translating that into customers? how you interpret this data? >> they are more in line of what we are seeing across the internet. and what we have seen the last bullet years is as more traffic migrants to mobile devices, the number of clicks people do on

searches is going up dramatically every slow quarter. but the price or click and the 15, 25, 30%. the good news is they are more looking for the price in more volume, and we see 20% topline growth. thing to be more consistent with how the mobile experience is with impressions. julia: what do you mean by impressions and how do quantify that? >> they are getting more advertising on nonsearch revenue. is on youtube or the display advertising. across the portfolio is not just search anymore. to have a number of revenue silos contributing to the revenue growth. joe: explain that more, than exponential explosion of clicks per mobile. is there something about that lends itself? >> people are spending more and more time on mobile devices.

think about how you use, and i know you are a big twitter user, and you flip all over the place and you are clicking and consuming more and more ads. are clicking on work at spin you would on a desktop environment. that is the good news. however, with a mobile device, it is not as rich as a desktop environment. differ advertises on a paying as much to get a mobile impression versus a desktop impression. as i said earlier, the likes of google and facebook are making up for the weaker mobile pricing with the much higher usage in terms of the number of clicks per impression. scarlet: it is a fleeting impression than one that resonates on a desktop. trend this pattern and emerged last couple of quarters and alphabet is trying to catch up with that an extended further. >> in the market is comfortable with this. -- this haseloped developed and it is something

that initially spooked people busy idc in a business such week but, you'd hate to see a business with such weak pricing. advertisers reach more people on mobile devices because that is where we spend more time. julia: with people were common is saying that outlook for growth, the two different percent jump in revenue excluding the traffic acquisition is the company's best growth rate since the middle of 2014. the revenue at that point was have to size than it is now. joe: it is incredible that it is half the size in 2014, which feels recent, so the fact it has doubled since then is an y testament.il julia: just to get your context on the significant beat we see on the bottom line on the eps.

like a tremendous beat. what you're seeing here is that this business is the power of the platform. google has multiple properties, and they are basically -- the fear is there would be a huge dilution and it would be losing and pay a lot more in their traffic acquisition costs to be relevant. i think the opposite is coming true, what is happening is debbie significant amount of relevant properties of those properties means that people are -- it ismore time driving revenue nicely. scarlet: has people think he will continue to deteriorate for

the first quarter for turning in thet some point year. growth --the topline direct revenue growth is really impressive, and i think joseph a few moments will, this thing is growing for a rapidly print that keepd allow them to margins for the under control based on where we thought they would be but that is a positive story. joe: could we be looking at yet another double in four years? crawford: sitting here, i think that is aggressive. i think are definitely going to see significant growth out of this thing going forward. julia: one of the things we also look for is the capital expenditure for these guys, more than tripling your on your.

-- year on year. whether it is hardware or the nest vision, is that give you laws that they should be wrapping up expenditure? crawford: when you look at all these companies that must be ex isant in the cloud, cap a huge part of the story and the have to spend on massive data centers of they want to bring an asset to the market that will matter. to me, the story here -- when i see revenue growth like this, they are not getting out over there skis, the are building of the future and are building it towards growth. for me that is a healthy sign that it is something you must do going forward. scarlet: so for a good story with results. as we await the conference call, what is the most pressing issue investors can ask google? >> what is happening in

washington dc and how it impacts your business. new, how's it going to affect google? crawford: the power is moving to the individual through legislation. julia: thank you paul sweeney and crawford. thank you for your perspective. conduct, rising market bridge means profits original banks -- rising mortgage rates means profits for original banks. this is bloomberg. ♪

mark: i am mark crumpton with first world news.

authorities in toronto say event jumped a curb and injured at least eight people at a busy intersection has been taken into custody. police say the car fled the scene before it was found a short time later. suffered there is no word on the extent of the injuries. santos saysesident despite the outcome of next month's presidential election, the november 2016 he still the country's dark with rebels is practically irreversible. president samples was on bloomberg television. obligationthere's an for the next three periods and presidents. they cannot take any decision that was against this agreement. they have already given up their arms and participated in the elections, the most pe aceful elections with had in years. mark: samples is ineligible to

seek reelection after serving two terms. he received a nobel peace prize for reaching that deal. armenian prime minister resigned unexpectedly today after an apparent move. to and massive government protests in the capital, residents poured out into the streets to celebrate. the surprise move announced on his website followed 10 days of demonstrations against his appointment as prime minister. willndian prime minister meet with chinese president xi jinping this week as the nation's to reduce lingering tensions following a report dispute last year. the so-called informal summit between president xi and a new premise there will be held over the weekend and both powers will look to reduce risks in the original environments as china faces. president trump's aggressive trade agenda and tries to get india's economy on track ahead of the 2019 election.

global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. red-hot housing market, and we get the latest bid on the sector. personally owned u.s. homes which they high due to a solid job market and tax cuts. --e is the federal chairman one of the largest hometown banks, joined us now from the nasdaq market site in new york city. great to have you think you for joining us. your business is going to thank busters -- gangbusters, they are up, how much are you lending out and what is the conversion rate? mark: the conversion rate on that, we are taking $200 million of amplifications are weak.

the conversion rate is somewhere around 80%. it is pretty high, and people were qualified are applied for mortgages. far, a great year so lester was a great year, but this is going to be a good year as well. joe: to see aspects of consumer strength? are the questions about the strength of the consumer, particularly in light of the tax cuts? have you seen any pivot since tax cuts hit? the biggest biggest consumer confidence is higher than we have ever seen in the last two years. a big part of that is the model that used to happen is that people want to buy a house and they get. a house and so the current one and now it looks at the bar back to the sea model where they are going out and buying a house,. and then they tried to sell the house if it is reversed, it does it really work in the mortgage market. higher, confidence is

by d.c. consumers are taking action and apply for more loans and using it, to what extent are they using the lots to build on their businesses or homes? we hear a lot about rising confidence be don't necessarily see that translate into action? aspect, weis another make lines of credit and those have also spiked, which leads me to believe people are using that money for things like remodeling homes, maybe putting on additions. things that has been done in the last 10 years because the economy has been so lousy. now with the tax rate and new tax laws, has improved the situation. julia: can ask what you are seeing from corporate markets? we look at one demand from bigger banks and the regional level, and it is described as more tepid. what are you seeing and do you agree with that? what is the explanation?

marc: i can't speak to that because we are a traditional savings and loan. we take money from the community and lend back out to the community. we are doing that for homes, single-family, and owner occupied homes. we don't see too much commercial lending and we don't do credit cards either. on the home market front, it is really going gang busters this year. joe: what effect can be seen from proposed changes in -- a regulation? marc: it has been great and we are just done a fair basis. the letter of the law hasn't changed all that much. think the enforcement of the letter of the law is something that has changed. is not that regulators -- i think there is more fair objective to how an organization is run. the scent of that particular organization. scarlet: m and we introduced

marc as the head of a hometown back in ohio and is run like a family business. we both talked about this off-camera, the fact you run this unique way, that is not only allowing people to sign on to their computers to login from home -- you want a separation of work and life. marc: that is correct. to expect a lot of associates who work with a special at the same time we expect they are going to go home and be with their families. it is a nice work-life balance. 4%, sonover rate is only there's something to that philosophy. in addition to that, we are on schedule to make more money than ever in the company's history and we can make $100 million this year, which my parents never to give when they started the company in 1938. it is quite in a, smith and

window more for the committee than most banks and most savings and loans. we set up a charity for my wife a passed away, called rhonda's kiss, which raises money for people who are less fortunate and have cancer. they need money for things like wigs an transportation to their cancer treatment. we do a lot in the community and for the community. we are also the largest lender for home mortgages in the state of ohio. .ulia: a lot to be proud of can ask the fact you allow flexible working hours and you mentioned that your retain is incredible. what about for working women, does that help you retain women? i grew up in an environment where my mom and dad were partners. workplaceoman in the

was no big guilt for me, and out of the six people who are my direct reports, for our women -- four are women. we rely on ladies heavily. julia: you think it matters with performance? marc: performance wise, we are doing well operationally and financially. it seems like sometimes the women outperform the men. brilliant, think you for speaking with us. scarlet: alphabet shares have turned around and after hours trading. they had popped on the results on the big beat on the bottom since thenpline, but they have given up some of the advance and the are trending with little change following a decline in regular trading. joe: what is interesting is selina wang talking about that change in standard -- and we

talked earlier about other stakes. with the new change, off the bat --kes in uber and dignity and gains in other aspects of the business that people are billioned in -- the 3 that come from an increase in equity securities. scarlet: i love g life go because you get granular and get into the results. alphabet,ou look at was also mentioned that in capital expenditures reside a big increase in google's capital expenditure and primarily reflects the $2.4 billion purchase the chelsea offices. julia: and another point to go back into the traffic acquisition costs. when we started looking at these, investors were fretting about the growing sites of this.

were 13% of the revenues generated from its own website, including search and youtube. that is an all-time high percentage of the committee has a these fees would start to moderate at the beginning of 2018. this is something people need to talk about and listen to on the calls. and 50 new employees per day at google in this quarter. if you are looking for a america job creator. scarlet: a hiring boom. next, making sense of a filing in that will be looking at tech ipos that are all wrong. different way of looking at silicon valley startups going public, and perhaps explain the share prices afterwards. this is bloomberg. ♪

mark: french president emmanuel macron has rightly state visit the u.s.. is the first such visit and the trump in the trump and rescission and macron called visit a great honor. >> we want to discuss bilateral issues and discuss about our trade, and a lot of important issues for our countries and beyond. president macron and trump are scheduled to hold a joint news conference tomorrow. when secretary-general antonio guterres says retreat in sweden with members of the deeply divided security council had

cooled down tensions over syria. distressed all 15 members fully support a political solution. >> the most difficult thing has been the accountability in relation to chemical weapons attacks. has been until now -- no possibility to come to an agreement in relation to a dozen -- in relation to a mechanism. mark: he added there is no solution to the dispute between russia and many councilmembers, including all western nations, over a new body to determine responsibility for chemical weapons attacks in syria. and 200 where 50 workers stormed the headquarters and a french will try today, the next day of a called strike that trade unions say will last until summer. workers make their way to the top of that as ncf building in a paris suburb and lit flares. many for the government plans to

privatize that sncf the same way as trade division was in 2006 best that reform cost 10,000 rail workers their jobs. russian president via repeated is planning a one and $62 billion increase in spending in an effort to kickstart russia's sputtering economy. according to people familiar with putin's agenda say he expected to formalize the a decreeplan with to be signed, and russia is becoming increasingly isolated as sections continue to take a toll. . and is searching for ways to get the economy back on track following the longest recession office 18 years in office. global news, 24 hours a day, powered by more than 2,700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. scarlet: let's get a recap of

today's market action. imaged trading date with not a lot of moment and you can see the nasdaq closed the quarter of 1%. you saw that reflected in shares of a as well, which reported blowout numbers for the first quarter on the bottom line and topline. stocks rallied in response to the results, and they got to give up gains and is now trending higher once again. it is all of the place until the earnings call in a little bit. in better way of evaluating tech ipos. were startups make the leap to go public. , trade research is sure to give investors a different way to look at these deals. their ceo joins us now. ask for coming in -- thanks for coming in. as get a status update on the market in general.

it was pretty bleak and 2017 and things have turned around in 2018. what changed and is it sustainable? isnot sure if it sustainable, but we are watching the tape, and the calendar, and there were five deals done on the calendar, so it is 40% higher than last years calendar. of: you talk about the lack transparency of ipos and the fact that investors don't have a great way of getting a sense of whether a company is good or not the information given. one -- was an example of that investors misjudged the quality of the business. what is the issue? because they are getting the data from the people who are selling the stocks. yard in the goldman's view because they like to sell you $4 billion of stock. from a macro perspective, our approach is that what investors are used to is a creative process to research.

analyst will write up thoughts and tell you what he thinks about the company. we tried to be more systematic. instead of focusing on two or three things of a company to our notable, like initiating a by uy rating. your flick at everything instead of the selective about what you look at. second coming these things are different command every analyst covers the these differently and every company is a different snowflake. we look at them all the same as for them all the same. julia: what criteria are looking at? internally then index. the oxygen snap not telling us how many cells to what they have for the fact they even have salespeople is not good. joe: something like an pacitti measure doesn't sound concrete,

how to put a number? rett: that is the magic of the system. and no one has heard of the system besides customers. left four years of data we look at on the rigors basis to track how it performs. web-based or score for something that is founder power, which is important. are the founders still there and are they on the board and do they have more in control of the company? 10, anda perfect against for that vigorously. and some of the deals you see now, managers who came in now are not founders, and have little to say about what is going on. founder power is highly correlated to the weight is company's work, unless you are snap and you have a low business score. and when the bad business finds-under power -- scarlet: did they change

constantly? rett: the correlations are interesting. founder power and business quality is important. things we score for is hype and bus, which turns out to be not correlated. just because you hear a company doesn't mean you're going to do well. we also score investors. and sequoia, they are pre-ipo investors than you would think that would be good, but it turns out that is not correlated in the way a company has performed. joe: is to correlate stock performance with a series of 14 factors, how do you establish looks at a robust factor is not a result of back testing? rett: that is a good question. when we designed this works is that we scored each individual thing. investors,gement, board, products good. all the things you would think would be important. but we have been over four years

is to the swing system so it turns out to be the thing that we thought is most interesting. the summary score is the most highly correlated. not individual pieces but the whole. do it directly to the company and say this is the information? rett: it would get a 10 and square off the charts if we listen to them. julia: but they would have to be truthful? rett: they don't have to tell you all the things that are true. so, our system was built to analyze private companies. the way we talk about this is private companies have no disclosure at all. public companies have been disclosure. if you're good at private companies with the disclosure -- julia: how much of the -- onation that you get

the quality basis when you talk about these issues with snap, they wouldn't tell you. you open up the perspective, snap is a camera company as it is described. our company is you cannot click at snap or snapchat kumal which is the product, you need to look at the individual products. our analysis is bottom-up based on top-down approach. stuff that comes out, we have our analysis we do for every company so we can compare them to each other. julia: less than 5% is coming from the company? depends, to suit a lower transparency score if they don't tell us. there is a chinese company -- you watched chinese gamers, it is a channel you can watch gamers play. scarlet: like twitch?

rett: sort of like that, i do read this statement and only twice dimension, that they make the games themselves. if you want to buy a game publisher, that is an example of a company, but not really. have to look for these things. joe: who in the ipo pipeline is going high in your measuring system? we have you back in six months are a year? rett: the highest scoring --pany right now joe: we did a whole show on it. rett: docusign. is like a smart sheet across the board. not it's great things out of

that. investor, you are completely screwed, or you are looking to make money. rett: if you are not a pro, forget it. but if you are a pro, you are busy. the reason this product him about is because you only have two weeks to make your product. so if you have the systems do it is very difficult. up, insight into alphabets quarter in our conversation. this is bloomberg. ♪

scarlet: off but reported

earnings per share for the first quarter that be the highest revenue topping estimates. emily chang had a chance to speak with all that cfo, and emily joins us with the highlights. >> the highlight here is google at momentum continues to grow despite the scrutiny around privacy and regulation. traffic acquisition costs rising over $6 billion. and they said they will continue to rise, however the growth. the slow and why it is getting expensive is because of mobile search. they think mobile search is a great opportunity and they will continue to invest in it. a lot of the questions i had for ruth focused on data privacy and what the are doing and the advent of the can which i would cut scandal and how it impacts google's business. r, there us terms of gdp ar

working with the compliance for 18 months and they have a robust and strong privacy program that we are building on. . the well prepared to meet the requirements of course, want to know how this will impact the business, and she wouldn't give us a number. she did say most of the act is this is search, it relies on keywords entered the business is diverse and have been committed to these requirements for a long time. the indication is that this won't have a significant impact on business -- that is my interpretation of it. something else with talked about was the honest ads act. new legislation that facebook and twitter have said they will support. but google has been notably silent here. so i asked when or if google will support the artist at act she said will continue to monitor and put in place new safeguards. start about transference reports and election ads, but no answer

either way of whether google or alphabet will support this legislation. this is something lawmakers have noticed and called out google on its silence for. that event would talk about our increasing at controls, given concerns about content and what content ads are shown. shealked about youtube, and said they remain focused on youtube and content and making sure youtube offers the best experience for users, and making sure there is no abuse. other things out, the revenue g nest has moved under the google umbrella. and it was driven primarily by merrily, primarily by for the first time, i know you guys have talked about this a little bit, who will now has this goes to gains in makes on private investments.

investments including over, and we know those gains are more than $3 billion. this is something real previously has not disclosed. julia: thank you emily chang. up next. he-man well macron is in washington and lee uses charm to change the president's mind on policy? we go to washington dc next. this is bloomberg. ♪

julia: emmanuel macron is in washington will be honored at the white house with the first official state dinner of the trump presidency.

foreign-policy goals will be key as was coming out the america first agenda ahead of german chancellor angela merkel begin next week. kevin cirilli is that the white house with the latest. kevin, super exciting times to see what happens, even as far as the hatchet is concerned. >> you set it. talk about for policy, clearly the french president was to influence trump with regards to nothing else. president trump has made clear his position on the iran nuclear deal, saint it should be renegotiated or the u.s. should withdraw. i stick with republicans on capitol hill and many of whom

are skeptical about the iran deal to begin with. they feel this is the best deal they can get at this time. a couple withdrawal, particularly when the president is said to speak and meet with north korean dictator kim jong:, could actually send a message to north korea is about why he would want to get into a deal only to have the americans withdraw from it just a year or two later? policy issuesther including environment the protection as well as trade, these two world leaders, macron and trump carefully still have their differences. scarlet: julia and should pomp and circumstance, and a look sectors pomp and circumstance behind you. this is a three-day visit from the french president, august through when we can expect headlines on iran or trade. macron already making headlines earlier this afternoon, saying he was looking

forward to a series of bilateral trade meetings with president trump. and also with multinational negotiations pertaining to national security. set across sixy -- whereite house that the president elect is housed when they meet with incoming presidents. will make his way through this gate behind me, where he is getting a very warm welcome. president macron and trump will plant a tree on the south lawn to signify the relationship between france and united states. after that will travel from mount vernon, where president george washington is buried. it will spend a lot of one on one alone time. tomorrow is the first date dinner, and in a joint address to congress. joe: ahead of the one on one alone time, julia joked about --

i would to ask you about the handshake. i'm curious about what we know about their personal relationship. it seems tense at times but they also seem to be visiting each other all the time. what is the personal fight between the two? vibeat is the personal between the two? mcroberts it's a different constituency in france than president trump does in united states. that said, these two world leaders have been able to forge common ground, particularly in dealing with this assad regime. they both agreed that iraq should not have nuclear weapons. how they achieve that goal, the policy details are different. on the issue of syria and assad, this comes at a time we have aggressive leaders like president macron and the conservative like trump who are united.

delta milli decided to use military strength against the assad regime, and part from it we have seen this rhetoric from the in frustration with russia's involvement in syria but also escalated in the past few weeks. on capitol hill the presidents to me for secretary of state, ci director mike pompeo is facing some difficulty. is not expected to get out of the foreign relations committee, but he is anticipated clear the senate, should mitch mcconnell bypass committee and bring it to a floor vote. scarlet: kevin cirilli from the white house, thank you for that. chemistry can go both ways. julia: it depends on who has the strong handshake. scarlet: it is time for the biggest news stories right now. wells fargo's shareholder meetings tomorrow, and a marches plan in des moines, iowa with

labor practices and work with the nra. prosecutors find wells fargo for lloyd abuses and the firm says it will explore to update shareholders on accomplishments to date. the $4.2onment of billion acquisition of a court after the generic drug maker found material breaches of the u.s. fda standards. , under terms of the deal fees ifd acorn retained the deal fell apart, and acorn has disputed for walking away. with says there is no such thing as a free ride? harley davidson would pay interns to write harley davidson's and share the joy ride. and the students looking device. the company is looking for college students or graduates were 18 or older. they want someone who is creative and able to produce good content on the fly as well.

and that is your business flash update. joe: coming up, what you need to know about tomorrow's is is trading day. this is bloomberg. ♪

scarlet: pictures coming under pressure, and cannot, president

gauck roller report for score results before the ball tomorrow. joe: you look at economic data and consumer numbers are out at 10 a.m. your time. julia: and president trump and melania hosting their first state dinner with the french president and his wife tomorrow. scarlet: that does it for "what'd you miss?". joe: have a great evening. this is bloomberg. ♪

>> you are watching bloomberg technology. here is a check of first word news. the french president and his wife have arrived in the u.s. for a three-day official state visit. this is the first by any foreign

leader during this administration. macron says talks on multilateral issues are on the agenda. the thirdnnelly is senate democrat to support cia director mike pompeo's confirmation. heitkamp andheidi joe manchin have declared support. a look at come as early as next week. authorities in toronto say the driver of a van that killed at least nine people has been taken into custody. the canadian prime minister hasn't said that investigators are gathering information. and police say the suspect in a tennessee waffle house shooting on sunday has been taken into custody. four people were killed in that incident. authorities say that the 29-year-old had a gun in his backpack when he was arrested. bill cosby's lawyers have rested their case and his sexual assault retrial. the comedian did not take the stand. he is charged with molesting a woman at his