secretary ben carson says the changes are necessary between is the current -- because the current system discourages public housing from better jobs. it would also eliminate income deductions that could lower rental costs, although disabled tenants would be exempted. estimated 4.5 billion dollars inhumanity humanitarian aid for syria and neighbors sheltering the refugees. the number falls significantly short of the more than $7 billion the united nations is seeking. mark says the money will go to the most desperate cases first. syria, we will have to focus. the right thing to do is to focus on the most fun report, those in the most acute need. we have to expect need based on humanitarian principles of

independent impartiality and neutrality. mark: eight years into the conflict in more than 13 million syrians are in need of humanitarian assistance. a quarter of the population is displaced in neighboring companies like lebanon, georgia, and turkey. streets toook to the propose minimum wage. the plant wage of $1.6 an hour is too low and will only -- poverty in south africa. the plant wagegovernment hostil. after david was -- whose revenue was tainted by scandals. george h.w. bush is alert and talking and the doctors are pleased with the process -- the progress. former president had been in the

hospital monday. he being treated for a blood infection -- infection. on twitter, powered by more than 2700 twitter -- allison at -- global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton and this is bloomberg. ♪ julia life i am chatterley. scarlet: i am scarlet fu. joe: i am joe weisenthal p or julia: a choppy session. the u.s. dollar is climbing to its highest since -- question is, what did you miss question mark >> shares give up gains after warning the revenue growth were slow. roman of truth for facebook,

investors will scour first-quarter results for any drop-off in users in the fallout for cambridge, analytica. the crosshairs of lagging demand. qualcomm reports after the bell, the numbers ahead. >> for the first time in four years, the 10 year yield has aossed a 3% threshold with ripple effect across asset classes. equities turning positive as we head toward the close. industrials under pressure. joining us now for more, the global head of asset allocation joins us from denver. great to have you with us. talk about what we are seeing in the rate markets now. in particular, for now and the u.s. dollar. talk about where rates go and where the dollar goes to.

>> absolutely. good afternoon. on everyone's mind, are we entering a whole new world can the ever elusive 3% interest bonds, finally hit? the fear is will we now see a sharp accelerated selloff in bonds? isbelieve the bond market not at a tipping point. for bonds to sell off sharply at an accelerated pace, one of two things needs to happen. need a mass exodus out of u.s. treasuries. for a mass exit is to unfold, you have to find a better place to park your money. is outside of the u.s. and developed markets, no bond is offering better yields than the u.s. yields. non-u.s. developed market bond, you are likely going to lose money in real terms because real rates are negative almost everywhere

outside of the u.s. we do not see a mass exodus unfolding. a second catalyst to a mass selloff is a chilled to inflation, which obviously will affect u.s. bonds and global bonds. we do not see that happening at all credit goes to janet yellen and her team, where they took on a very proactive stance to tightening monetary conditions. to play not allow music for too long, they did not allow the punch to flow for too long. the risk rund inflation. we do not see an inflation scare anywhere near the horizon. >> where could rates go over in the long term? it is one thing for the wheel to not fall off the bond market, but we have seen a substantial move up. >> an excellent question. normalization while

underway is not complete. where it is not complete is in the real rate space. we look at 10 year yields, they are around 3%. is real basis points yield. what does that tell you? it intuitively tells you the bond market believes the average the nextin the u.s. in 10 years will be around 80 basis points, way too low. of real gdp in the next 10 years, one could argue is somewhere between 1.5 and 2%. we think really yields could have another 75 basis points to go up, which brings the 10 year yield to 3.75%. we think that is normal. it is not about where interest rates settle at. is about the trajectory and the path they take to the new normal. will it be a measured, moderate

and gradual and continuous path or a violent and chaotic path >> we think it is the former what is something that would shock the system? >> if we have unexpected inflationary pressures, the fed will have no choice but to raise rates much quicker and tighter monetary conditions will translate to much higher to real rate. questioning whether or not corporate america and the economy would handle higher real rates. they come about faster than expected. international stocks, those in europe, for instance. >> there are a lot of things to pay attention to. for one, interest rates will go

up. will that affect growth stocks more than value stocks? it will affect growth stocks more. there are longer duration assets. if you think about emerging markets versus develop markets, rates go up and u.s. dollar strengthens here and we have seen that today. in -- emerging markets think the 1990's, they issued a tremendous amount of u.s. dollar debt, u.s. dollar funding more expensive and they have a hard time financing debt. people are smart and learned their lessons or today, countries do not issue large u.s. dollar debt. a stronger dollar is good for the emerging-market. the u.s. being the biggest in the world, the input is cheaper.

that gapuickly, between the u.s. rates and the race to the rest of the world, on some do that draw in of the rates? >> an excellent question. see a in fact may treasury for that exact reason. think about japan and insurance companies. they are risk-averse. if they buy non-japanese bonds, they hedge the currency. yield differential bonds, is soar wide and so attractive, we are willing to buy u.s. debt without hedging the currency. time, you have that

influx into u.s. debt markets, it is very hard for interest rates to get out of control. and violently should up. there are many forces that exist today that i believe will keep u.s. rates rising to the 3.7% level at the 10 year point at the graduate and moderate rate. >> i can count the number of people that if you don't want to day, going toa the front of the curve, what you think of that? >> and ask what idea. the u.s. here is way too flat. term premium has disappeared. come back once risk comes back to the interest rate market. about what you

volatility and the risk you expose yourself to, the front end is much more attractive than the backend. it is too flat and there is no point of taking on the duration. i think your point is very valid. >> thank you. coming up, highlights from the -- this isn bloomberg. ♪

>> our chief washington

correspondent caught up with the senator from idaho, james. take a listen. >> we hear from allies. a long relationship we had with friends, how we are bound. a little further left than i would like, but when you're dealing with the analogy, go at that. >> whether or not president trump will decide to remain in or out at of that deadline. what you think the president should do? withatever i am doing europeans, they talk about our agreement. we do not have an agreement. obama had an agreement. if you will have an agreement

with the united states, it will probably -- probably be submitted for a two thirds vote. we do not have an agreement other than that president obama has an executive agreement. as far as us withdrawing, it is not there because there is an agreed -- is denigrating -- agreement with the united states. i think the agreement, but for not having permanency, is the fact that they never have nuclear weapons and but for that are not asions strong as they would like to see, it covers the nuclear issue here it is like having a bad boy in the classroom doing five bad things and they sat down and and weed one thing strongly urged those of us who want to see it better agreement that negotiators -- .> democrats are also skeptical

speaking with iran, angela merkel coming on friday, theresa may, premised or u.k., also urging president trump to come in on this, as is germany and is it difficult for the u.s. to withdraw? >> not really. let me tell you what i told everyone of them. i said the ball is in your court. we have said and the president has said that you need to resolve the other issues. you need to resolve the issue of missile testing and mostly, resolve the issue of the financial support they give to terrorism. they need to resolve the issue of causing trouble to the middle east. they can do them and we have something to talk about.

>> this dramatically increased europe by more than 353%. what needs to be done to make sure the europeans are not financing terrorism? market is really big for the europeans. so big for us and part of that is just geography of where they are. when you talk about national security, economics take a ourseat to -- compared to national security. i talked about national security issues. i know people in the united states would like to tap into the market. i hope we get to that point. we will see if we do. >> to you think on syria that the u.s. and europe are on the same page? >> it is hard to be on the same page with anybody because security is a rubik's cube of different interests. there are combinations of

religious and ethnic backgrounds, sometimes, they fight together and sometimes they oppose. that, they have the most aggressive, iran and hezbollah. these are all difficult. job of done a good transactionally handling the situation. on an overall basis, it is a difficult situation. >> the focus was on twitter today. another social media heavyweight is moving more than either of them in the session. julie: it is not moving in the

right direction for shareholders. down 7%, as you saw. remember, it announces a big new design. it has not been good to say the least. back onort of pulling the redesign. one thing that was criticized, and i am not a snapchat user so forgive me. your friend, celebrity, etc., it would all appear in the same place. some celebrities complain about this. is one thingat they're rolling back on. there is a lot of uncertainty about now, if people are getting used to it, what it means to revert to the old way. it could potentially whiplash. did variousael

focus groups on the prior redesign and they were not good. he talked to middle school students, high school students, and young college graduates. and too manyes alerts. tweaking that that would a good thing or not behaving as though it were a good thing. but it is already happened -- >> they announced it late yesterday. i was emailing about the whole situation. if you look at the traffic, it hasn't gone down. using the bloomberg intelligence tool. this shows a month by month engagement and it remained steady in the first quarter. snape comes out with numbers on

may 8. we will see what if any effect this redesign has had pier 1 thing pointed out is whatever is adsd in the other results, have been strong likely. twitter performance today, a branchng of the entire magnified. they are changing, made a mistake, they are changing. >> also not on snap. he hasn't opened in a while. not on snap. not the right demographic. >> coming up, twitter earnings trump>> coming -- why punish th? this is bloomberg. ♪

joe: twitter hit all them right notes but investors are not into

it. the revenue growth could slow in the second half of the year to talk about what happened, let's bring in celina, a technology reporter in san francisco. i twitter is up 10% in the premarket and then turned negative. what was the thing that caused a reassessment? >> it is interesting to watch the reaction when the results hit. the company beat estimates on pretty much every front. says it will not be the same pace for the rest of the year. they cannot keep up the rapid pace of growth. twitter is still in the phase of trying to rebuild trust with investors. there was a lot of good news in the report. monthly active users finally active usersily

saw its sixth consecutive quarter of double-digit growth. a lot of that was coming internationally and if you look at the revenue growth in the u.s., it is far lower than internationally. joe: i saw the line in the release about challenges coming in the quarter ahead. it was right there and people took a while to read it? >> there has been a lot of positive momentum behind this stock. it's a people a while to digest everything. the talked -- top ones, if you take a few steps back, this is really struggling a few years ago and the question is whether or not it can sustain itself. now, the story can turn around. the company is growing at a slower pace. let's remember the stock has increased more than 50% in the past few months. after so are starting

much positive momentum and sentiment. joe: facebook coming out after hours, what is the number one thing you will look for where we tell you how the company is doing? company -- the focus will be less on those metrics and how cambridge analytica and the privacy issues will impact the company. executives have been very conservative in terms of the impact this has had. the facebook campaign hasn't really affected advertising but expect analysts to push them on how much they are spending to fix the problem, how much regulation could impact the bottom line. there will be a lot of critical questions and they will probably touch on issues zuckerberg did not respond to when he testified just a few weeks ago. joe: got you. it produces a global breaking

news network for twitter, so consider that. >> the market closes next. ticking., the clock is the dow is up just slightly. the s&p 500 is little changed. this is bloomberg. ♪

♪ julia: tech and industrials and

we await facebook results. if you are tuning in live on twitter we welcome you to our closing bell coverage every weekday from 4 p.m. to 5 p.m. eastern. scarlet: let's start with the market minutes. u.s. stocks closing slightly higher except for the nasdaq. twitterme pressure as and some of the other social media companies declined, including facebook, which is due to report earnings any minute now. --'s begin danica patrick, let's bring in david kirkpatrick. everyone is talking about how we focus on monthly active users, but forget that, this time it is

about the commentary. >> it is commentary for mark zuckerberg principally about the address data privacy and integrity. all of the things he testified in front of congress. why this is different this time is because it is the u.s. congress. it is not just the european union, that is a regulatory risk that companies have had to deal with. something a little different. what will the cost associated with those entities be for facebook? don't ask sheryl sandberg from an advertising perspective dancing pushback. julia: she said some when she spoke to emily chang in discussing it. but, what you want to hear in addition to what we have heard from mark zuckerberg when he testifies on capitol hill? david: the key question is one pol mentioned -- paul mentioned.

is that even before cambridge analytica eight on the russian manipulation, and the question is now that he has made promises, how much is it going to cost and over what time frame? that to me is essential, and even though users as the top issue, if those users declined significantly and continue to decline from the last quarter, will get a lot of attention. joe: and also how investors assess earnings, is is growing on the concern of investors? the incredible arms race going on in this space? paul: a little bit. doesback to jeff bezos who us year after year and investors are comfortable with it. the issue for off the bat and some other companies -- the alphabet, and the b

facebook, and twitter, there is to be operating leverage their. for some companies, there is a quarter we didn't see their. ere. joe: if they hold onto to the network investors will be forgiving. paul: that has been the story for several years and i don't think that will change. scarlet: qualcomm has reported , in the revenue i'm just the basis was $5.23 billion, beating consensus estimates. gets that share price reacting. -- you see the share price reacting. julia: we see a finger in the wind that we have to bring back if users are still seeing that pattern in decline that we saw

for the first time in the united states, and engagement they have said they are going for quality versus quantity. david: i think that is a key part, and whether or not advertisers are using the controversy as a means to get leverage over facebook on pricing is a very key question. if i were a big buyer i certainly would be negotiating harder than ever before. ofrlet: we know the details how negotiators advertise? david: the bigger you are, the more nonstandard gets. datahas there been any that is concerning in terms of stuff we have seen from third-party companies trying to get a feel for the quarter? anything that says there is a problem? or if we didn't know cambridge analytica existed? paul: it is too soon.

the biggest risk is amazon. 's son is going advertising it may in fact be a viable third platform for facebook and off thalphabet. scarlet: if you are joining us, facebook results just crossed. that.l keep you posted on when it comes to revenue, much higher them what analysts were looking for. 11.97, higher than bullish estimates out there. itly active users matches, didn't increase. monthly active users versus the consensus estimates is slightly higher than what analysts were

looking for. do these numbers matter? is that if we cite a drop off that would be significant, but if we see it still out -- meeting estimates, is that a bad thing for facebook? david: not necessarily, but the key number is users in the united states, and they declined. the chances are decent that number has continued to at least not go up the way it used to and possibly decline. if it does, this is a significant indicator that the most profitable market for facebook. toia: is it simply too soon get a gauge of any of the impact right now? we are about softening for engagement going forward before kim which analytica, -- before cambridge analytica.

not heard is have any big advertisers come out and say we are pulling money out of the platform. that happened before with other media platforms. we haven't heard big at agencies talk about changes and shifts and how clients are reacting. and absence of that, people are going to be focusing on sheryl sandberg, the voice of facebook when it comes to advertising. scarlet: maybe one reason advertises have not come out with the is because they cannot shift from facebook to instagram because it is under the facebook empire. seen downgrades levers there are so many for facebook to pull outside of the core facebook.com. have other apps. 42% increase.

joe: investors like what they see. we saw to caterpillar and twitter and numerous banks. going not be shocked to see this 3% number moving either direction, but for now investors are liking the revenue beat and they like it doesn't appear to be any deterioration in the users. if you look at earnings per share, the cap basis is up 25% over what was expected. that is a really big beat. scarlet: we also see headcount increase. .p 48% year-over-year

this is a company that has promised to spend a lot more on hiring to bring in the human element to sift through the posts that show up on facebook's platform all day long. is that the answer orton facebook inch back towards artificial intelligence? david: it has to be both. it is going to be continued growth in people, even as they up the use of ai to govern their platform were effectively. the two have to go hand-in-hand. zuckerberg talking about the tough your facebook has had, sent despite challenges, are was is is a up to a strong start. despite all the well-known issues facing the company. david: it could be politically problematic for them to make a vastly greater amount of money than they were even making before. they have an image problem of

the highest order. garrett absolutely unique company of the text we haven't seen before under extraordinary scrutiny. if i were them i would be might ldly embarrassed. it is a dicey line to walk. i find curious is the sentiment and reputational hit facebook has suffered as a result of this privacy and data issue is a sin to be spreading -- doesn't seem to be spreading. you'd think it is just as big of an issue, if not more. alphabet is a big users, but search is different and realized more on the keywords you type in to the search box and less than so on the demographics of the user. that is information you share on a social platform like facebook

or instagram. i think the risk profile for the ultimate model is lower, but they also have youtube and environment risks others don't have. i think this is an industrywide issue and not a facebook issue. facebook was simply the first to go before capitol hill. julia: we have other earnings coming out. these is one of those for the visa. quarter -- is significant beat on the adjusted eps line. higher by 11%. we also saw them i just earnings per share growth forecast to the high 20's. they initially saw mid-20's. net revenue growth forecast is in the low double digits. the eps is looking stronger

there. and you can see it higher by 1.9% after hours. scarlet: also have at&t reporting results and awaiting the department of justice or the courts to finish out ruling to go ahead the purchase of time warner. adjusted eps missing estimates. also shy of what analysts were looking for, and revenue as well. downan see the stock is 3.5% in after-hours trading. continue to scour results and we have more facebook coverage coming up ahead. this is bloomberg. ♪

mark: president trump's travel ban to support from key supreme court justices today. the court took a direct look at policy that indefinitely ours more than 150 million people from entering the united states. chief justice john roberts and anthony kennedy both indicated they were skeptical of arguments against the policy, including claims that mr. trump was motivated by bias. >> our nation was founded on a different premise on the idea that you will be treated fairly. our immigration laws reflect that most powerfully, in 1965, and saying there shall be no nationality-based discrimination. that is what the president's order does. mark: the court will likely

issue its ruling in june. french president emmanuel macron called united states to reject fear and ice , and urged united states not to retreat from its historic and military rule in the world affairs. he told lawmakers we are living in a time of anger and fear because of global threats. he continued that you can play with fears and anchors for a time, but they do not construct anything. the global chemical weapons watch taxes its team of it masters inspected the syrian town again that was alleged to be hit by a chemical attack earlier this month. the organization for the prohibition of chemical weapons says the team took samples that will be sent to lapse for analysis. the suspected attack killed more than 40 people. tennesse waffle

house reopened and will donate sales to help victims of the attack. the corporate staff says it met with the national restaurant cook and wait staff and said they wanted to go back to work. 29-year-old is charged with four counts of criminal homicide in sunday's shooting. global news, 24 hours a day, on the air, and at tictoc on twitter. powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. scarlet: more breaking news,.net beating highest analyst estimates. chipotle beating analyst estimates. we should mention sales higher than anticipated with a 2.2% increase. chipotle hast,

approved another $100 million per share buybacks and going forward to cheese comparable sales in the low single digits going forward it sees comparable sales in the low single digits. julia: also begin on the revenue line $39 billion. there was going to be critical, what else they can do to streamline and boost profitability. billionsd additional of cost and efficiency gains. this is not investors want to hear. capex.ducing announcing greater cost and efficiency actions to two to

rightbillion investors now at 4/10 of 1%, not as great optimism. and we speak to the cfo and the few moments. tempted this custom first-quarter numbers and continue on what the focus is as far as reshaping the business is concerned. also discuss facebook this fternoon, daily active beat andline, and a topping estimates for revenues, generated costs from advertising. to discuss this further is david kirkpatrick and paul sweeney. us over the phone is john o'donoghue.

great to have you with us. you created waves or facebook and investors when you downgraded your outlook to mixed. what you make of the numbers? anything that changes your views on downgrading this stock? john: good afternoon everybody into my old colleague, mr. sweeney, hello. say we don't put ratings on stocks, but read's come and the reason we do that is we do not do financial analysis. is methodology for our firm deep sources. in our findings we went from a positive rate to a mixed read, at may be semantics on the street. what we did find was first quarter at spending still to 25% for the

first quarter of 2017, and as i looked i see the stock trading 167-168. however, on the positive side, pricing metrics are solid for the company. -- ad spent is still robust. as you mentioned earlier before you want to write, instagram is -- doing well. there are a few things that happened, but the removal of third-party data providers, and algorithm changes which occur before mr. zuckerberg's testimony caused a slowdown in spending. it was truly a mixed bag. interviewsrify, the

you do to get your reads. -- are theenues numbers you see that dovetail with your diminished read of the company? i have seen some of the headlines come across, once we they carter will see for sure. i think the reference to the daily of u.s. users on a basis is something we will dig into a little bit. the adid before, spending number is the one we pay attention to a lot. once we did and harder we will have a better idea, but i think we came while on it. the slides are out on facebook's presentation and the u.s. and canada monthly active users, 241 million is an uptick from the quarter before.

there was anxiety was flat -- but it is not declining. scarlet: maybe has come back a little bit. gos that mean all systems for facebook and advertisers can stop fretting because north american users are hanging in? john: i would think so. the whole issue of the congressional appearance toward the end of the quarter and into the second quarter -- perhaps when we go back to the marketplace and to a mid-quarter check will get a better rate on that. it has caused asked on the caused angst on the street. as itsue with gdpr filters the united states will have a negative effect. fact mr. graham is doing well and app -- the fact

well, weagram is doing have a short-term blip in this. i think what's we dig and we get a better read. julia: let's begin sarah frier from san francisco. your initial take on some of these numbers, and to go back on the question were asking earlier, is it too soon to see some kind of material impact as far as advertisers are concerned on what negotiating power they are bringing to bear in light of the scandal we got from cambridge analytica? theh: let's be clear that scandal broke at the end of march, so we might not see the full impact of the changes and all of the turmoil that has happened internally at the company since then until the next quarter. to be fair, this company has been embroiled in controversy for more than a year, and it is still going on also wonders.

cylanders. the revenue is at near record levels in the other quarter that was better than this was the fourth quarter before this. the business is so far surviving a lot of the controversy and scrutiny around it. joe: we don't know for sure yet what the fallout of cambridge butytica scandal will be, we can say for sure is we are not seeing any decline yet, right, sarah? sarah: we see more daily and monthly users in the markets people were worried about the prior quarter. that shows people are not giving up on facebook. that delete facebook campaign zuckerberg told us that he wasn't seeing a meaningful impact -- we are now not seeing a meaningful impact. what i am interested in seeing as how they explain everything on the call.

they have had the opportunity to talk about facebook and its future with regards to security and privacy. they have the opportunity to talk about it to journalists, congress, users. now they can explain to wall street why want affect the business much. it will be interesting. scarlet: this is a near record quarter revenue. may be could be problematic for facebook to be so profitable when it is under political scrutiny. remind us what happened with microsoft when it came under government scrutiny when it was so profitable that was trying to do one thing, it begin so much money under pressure from the government for being so monopolistic. paul: if you go back to the aboutoft years -- it was the market share and the anticompetitive nature of microsoft in certain markets, given by their tremendous

operating software system. facebook would put itself in the context that we are in the global advertising business, the global digital advertising business, and there are lots of competitors out there on the global scale. there are other players. julia: been looking at the share prices over the last five days, we are still not above where we open five days ago in terms of the spike we are seeing in after-hours trades. kirkpatrick,david paul sweeney, and john o'donoghue. and sarah frier in san francisco. scarlet: let's get you other results. matchingrting results, analyst estimates and reaffirms its forecast and says the second-quarter operating profit

will be 50 to 52 cents. this is bloomberg. ♪

julia: four beating estimates in their q1 earnings, their cfo to its us from the headquarters in dearborn, michigan. the light have to pick up with his the $25.5 billion of cost savings by 2022. how are you going to do it? it byould are going to do focusing on all parts of our business. what you are referring to is $10 million of engineering that was disclosed back in october. onsaid will continue to work

improving our business, and we have done that and today we announce another 11 point $5 billion across five parts of our business in terms of cost efficiencies and other efficiencies, particularly in the marketing and sales areas. what we expect is to be able to achieve our 8% targeted even margin years earlier than 22020.ated in the what: ask the question, carline are you going to cut and what areas of the global business can attract south america and how are you going to execute this? i know you talk about fitness, but how? bob: fitness is around efficiency. the think you are talking about is the second element of our efforts to become a much more competitive, high return, and also resilient business. that is where we reallocate

capital. we we capital to our high-performance businesses and we will take capital away from lower performing parts of the and that at different business models and partnerships and alliances the disposition was businesses appropriately. julia: protect about taking capital away from compaq and midsize cars and perhaps pushing more in the suv space? these are elements that are the underperforming and performing. the absolutely, high-performing part of fort is significant at large and incredibly profitable. will allocate more capital in that to make it even larger and more positive for us. that will take capital from those parts of the business we think we don't have a path forward to appropriate returns. julia: can also ask what you are seeing in pricing? we see incredible gyrations in

the metals space. and light of tariff announcements the potential damage that can cause with the sanctions on russia. what are you seeing and what are you hearing in terms of possible pricing trouble going forward? bob: we saw substantial increases in our commodity costs last year, over a million dollars globally. in this particular quarter will disclose increases of half $1 billion and a majority of that was in skill and aluminum and other metals. we believe in the case of steel it was influenced in terms of pricing pressure from the threat of tariffs from the u.s.. that is something we're having to address for the full year and we expect to see further increases, although mitigating the year-over-year basis as the year progresses. julia: it is difficult to see and predict where this is going.

quantify they way potential impact to the business? bob: we do multiple scenarios around areas of risk in the business. so far in terms of sanctions you haven't seen anything material that is going to affect our business in russia. but certainly we are watching the closely. in the case of tariffs will have to wait and see. how much is negotiation strategy versus implementation and execution -- we will have to wait and see. but it would have an impact on the business and we think you has had some impact on steel. and they will put $5 billion headwind this year, is that right? bob: we had half a billion in the quarter and we think it will be a less year-over-year affect the subsequent three quarters. based on our best estimates by the time the year is over, it is an increase of eight billion and

of af dollars -- increase billion and a half. julia: how quickly can you do that? bob: it is going to happen quickly because we think when we our volume is going to be suvs, trucks, adnd vans. we have the bronco coming back, and other things as well that will change the allocation of capital, but nothing more to talk about at the moment. for investors looking at the share price at the moment there is a great deal of to onence, they wanted the job of refocusing the business. what is the message to investors that have been patient and are getting more impatient? is we think the message

understand and we hear you and we have got it and we are moving with urgency. of incrementaln cost efficiencies and other efficiencies, the $5 billion of reduction in our capital intensity -- there are a few other things will talk about today that will indicate that the business is moving forward. this team is making decisions that the decisive about allocation of capital and also driving for efficiency and fitness. julia: and you will be more ruthless is acquired -- required? bob: absolutely. we are moving forward with that mindset. cfoa: bob shanks, the afford from dearborn, michigan. thank you for that. on with the much going the major indexes, the nasdaq's

winning a little before facebook reported results. and that after about earnings reports are in the focus. and the shares rising, bottom line was a huge beat and can see the stock is up by 4.8%. topping estimates and earnings higher than anticipated. the chipmaker under pressure because of the broadcom bid for the company announced second-quarter revenue beat the highest analyst estimates out there. shows the market is improving. and at&t moving to the downside with disappointing numbers. at&t is waiting to get its purchase of time warner resolved and up pressure on that deal. revenue,ng analysts shy have expectations.

moving forward with more results, you be announcing results as well in the stock is down almost 3% at the moment. ebay coming in and saying adjusted earnings per share for the second quarter has missed analyst estimates. the forecast is disappointing here. paypal results higher than almost 3% as well. paypal forecasting strong growth and easing concerns over losing ebay. and here is a strong result that joe mentioned earlier, beating analyst estimates by 8.4% in after-hours trading. and credit card companies to be on debit card spending by millennials is helping with the results. be thequarter eps highest analyst estimates. julia: impressive run down. scarlet: let's get the mark

crumpton with first world news. mark: international donors 45 billion dollars in humanitarian aid for syria and its neighbors who are sheltering refugees. the number did however fall short of the more than 7 billion suddenly united nations. discredit councilmen today to discuss the humanitarian crisis in syria. >> the brussels conference showed the international community the place syria at the top the agenda and to ensure life-saving assistance is available to all in need. however, those commitments must turn into concrete action. mark: she said there are over 30 million people in need of aid in syria, including 5.6 million and what she described as acute need.

senators sent a letter to apex last week asking for information about accounts, assets, or services provided to the 96 oligarchs identified by the treasury department according to the wall street journal citing a letter it reviewed. delegate how financial systems can be exported by people sanctions by the u.s. thousands of south african union workers to the streets to protest a proposed minimum wage. they accuse the president of being hostile to labor and the permum wage hike of 1.6 hour only deepens poverty in south africa. ramaphosa took office in february after the resignation of jacob zuma, was presidency was painted by scandals. as the international community wrestles with how to contain the proliferation of nuclear weapons, the governor of japan

is calling for a break in the theirck between not countries and nations who are not joining the treaty on the prohibition of nuclear weapons. countries arepons making no attempt to join. some countries are even taking a resistance position. as a result, we are witnessing the gap between nuclear weapons states and nonnuclear weapon states getting more and more intense. mark: the governor also pledged at hiroshima will continue contributions to the realization of peace. global news, 24 hours a day, on the air, and at tictoc on twitter. powered by more than 2,700 journalists and analysts in more than 120 countries. this is bloomberg. scarlet: coming up, you have a bloomberg exclusive, the ceo of charles trump says wife titans

should think twice before entering the investment industry. this is bloomberg. ♪

scarlet: charles schwab isn't sweating over other companies m&a activities. the ceo spoke with erik schatzker and san francisco. walt: what we tried to do is look at every opportunity that comes up and make a decision that it is not just something that creates shareholder benefits, but doesn't have a strategic fit. >> and usually you have. most of the deals we see is a consultation deal. i'd buy you an fire sender 5% of your employees and we get a bit of a stock benefit.

we are questioning the client benefit and benefit from a shareholder standpoint. if it is truly about the shareholder, i do love that is our criteria. --if you trade was for sale, which will be a bitter? dder? walt: i can't speculate. >> i wonder how important is it for you to contemplate buying e trade, or risk of falls into the hands of one of your significant competitors, like td ameritrade, or fidelity? walt: we are not worried about where any organization falls or consolidates with someone else. if we keep our focus on the kind and doing the right thing by the client we are going to grow. that really is our emphasis. is not so much where some form and's up. >> some are going to listen to

the answer and think one doesn't care what happens to e trade. walt: eye care what happens to to bes, there's going firms for sale and firms interested in growing by acquisition. we have a long history of growing organically successfully. direct acquisition present themselves that meet our criteria, logic for the investor and logic for the client, we will pursue those aggressively. google if amazon and enter the investment industry, how great a risk is that or is it a risk at all? walt: it is a big decision for firms like that to enter our space. >> you can see why they find it attractive. walt: let me offer two things to think about in that space. the regulatory oversight.

a firm like charles schwab with a quarter of a trillion dollar bounce sheet, our great later is a federal reserve, does a fabulous job of being very deep into everything we do. company and fang decide you come into our space in the weight we are consistently operating, you invite the federal reserve and to every single thing you do in every part of your company. >> you are saying buyer to work to jeff bezos? business, the markets don't just go up, the market goes down to, and arguably the market was down 40% of the time. if you have a successful business model and you are one you want to go into a business were 40% of the time you despite clients? that is another factor you have to think about when i sit in the shoes of the ceo seat in one of the fangs.

was the ceo of charles schwab speaking in san francisco. qualcomm and andy are on a tear and we also have facebook wrapped up for you to and we had to san francisco to do it. this is bloomberg. ♪

scarlet: is time for the bloomberg business flash. apple ceo tim cook met with president trump the oval office, and earlier the president said the two will discuss how the us has been treated unfairly on trade. apple mass produces in china, and trump says he has asked that cap build a manufacturing plant in the u.s..

plans to ramp up production by 20% by year 2020 and the pope is due to a rebound in the global air cargo market. the midsized aircraft's favored by the likes of amazon and fedex, this marks the third increase in bones production rate in the jetliner has valued for 14. 3 billion dollars. according to morgan stanley, most trading occurs in market spaces on the island in the mediterranean sea and to boost fortunes by becoming one of the friendliest jurisdictions for the controversial sector. that is your business flash update. we have a slew of earnings. facebook is chief among them the stock moving higher in after hours trading with a huge be on the bottom line and topline. it's also talk about qualcomm. forecastwing the

results is the chinese market is favorite, and joe's advanced micro devices shooting higher in the after hours trading, the adjusted growth getting estimates. to put this into context we welcome tom giles from san francisco. way get facebook out of the and talk about what you think stood out because everyone is waiting for the conference call to get more of a read on how the executives are managing some of the issues and controversies surrounding the company. what was your take away? there was a lot of concerns about facebook and its numbers in discerning cycle, and they alleviated many of that. there were concerns that the delete facebook campaign we saw on social media was going to send users away in droves. have noterberg said we been seeing material impact and these numbers prove he was not

lying. they saw gains in monthly active and daily active users. those are important metrics for facebook. quarter in the fourth of last year they also saw a decline in north america users. that number is back on the climb and heading back in the right direction. as you said, revenue and profit beat estimates, so a huge sigh of relief around facebook numbers today. joe: this pick up and north youican daily average users can call a double victory because it eliminates the concern that previous quarters slow down was the start of some extent,le, and to some eases anxiety about the delete facebook campaign. they knocked out two concerns one stone. tom: there were a lot of people on social media, including which isnd instagram,

owned by facebook, saying we are concerned about privacy and the cambridge analytica thing sent shivers to users. it, and we saww mark and sheryl sandberg and other executives go on this big repentance for around the country telling people we do not what you to leave and we want you back. saying we are not seeing a material impact, so a big sigh of relief. at play another factor with facebook, in january they provide information to your newsfeed. they were concerned that would send people away as well. they are seeing things go in the right direction again. julia: charges as far as qualcomm is concerned -- what ises for qualcomm,

your take on this quarter and outlook for qualcomm? tom: for qualcomm you see real strength in china where they are a major supplier of components to a lot of chinese smartphone makers. it is still a big market there and opportunities for growth. -- there istrast bearishness overlaying the chip market and industry heading into this set of results. suppliers to apple have sent a chill across the market, giving indications that the results from apple that we are going to see next week are not going to be so hot. what we see with qualcomm, which is a supplier to apple, and also has a lot of other buyers in the chinese market. smartphone makers that give apple a run for its money in this major smartphone market is benefiting qualcomm right now. julia: and higher by the tents

of 1%. giles, thank you for that. joe: what you need to know for tomorrow's trading day. this is bloomberg. ♪

scarlet: in mixed day for u.s. equity indexes, but that was before the earnings bonanza we got after the close. facebook shares are going to open higher tomorrow. and don't miss the ecb announcement of right decisions tomorrow at 7:45 a.m. eastern time part by mario draghi's conference. joe: and numbers of u.s. jobless claims out at 8:30 a.m. tomorrow. unreportedi'm's first quarter earnings after the bell tomorrow and will bring that to you. the market knowledge is next. joe: this is bloomberg. ♪

alisa: i'm alisa parenti. you are watching "bloomberg technology." let's start with a check of your "first word news." ms. french president spoke, adjusting a joint meeting of congress today. he warned that a trade war would

be especially damaging to the middle class. >> the commercial war is not consistent with our mission, with our history, with our current commitments of global security. at the end of the day, it will be increasing prices. and the middle class will have to pay for it. alisa: the president's travel ban getting support today from supreme court justices. it bars people from entering the country. the court will likely issue a ruling in june. democrats have released a summary containing allegations of improper conduct by ronnie jackson, the piccadilly the veterans department. one document says he got intoxicated indirect a government car. george h.w. bush is out of intensive care. doctors say he