drugging and molesting a woman in the first big celebrity trial of the me to era. cosby could spend the rest of his life in prison. he claimed the 2004 encounter was consensual. former temple university employee andrea constand claimed it was not. you are looking at the prosecutor in a discovery county who brought the case against bill cosby. cosby has left the courthouse but was ordered to remain in pennsylvania. the united states is pushing to have a tentative nafta deal in place as trump administration officials plan to visit china for trade talks. people familiar with the negotiations say they want a deal by may 1, exemptions for steel and aluminum tariffs for canada and mexico that are due to expire. they are expected to meet with ministers from canada and ask ago for the third time this

week. a senior european union official is urging kosovo to settle its long-standing dispute with serbia. he spoke today during a joint news conference with cousin was president. president. >> i know this is a difficult issue for both sides but there is no alternative. it comes down to a strategic convincedt i am 100% will pay off. >> he said that after speaking with the residents of most serbia and cozumel he is kosovosly optimistic -- he is cautiously optimistic. the first meeting between iraqi and kurdish leadership encounter between

their forces last year. all major roads between the kurdish region and a rock are now open. airports are open to international flights. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am a mark crumpton, this is bloomberg. ♪ >> live from bloomberg's headquarters in new york i am julia chatterley. >> i am scarlet fu. >> i am joe weisenthal. nasdaq leading the gains. facebook having its best day since january 2016. scarlet: amazon gets ready to

take center stage. alexa and ad sales expected to drive quarter's profits. bump after its earnings report. the automaker shifted to upgrading pickup trucks, denting its profit arjun. -- profit margin. julia: "what'd you miss?" we were discussing facebook's results. here with more is the editor for bloomberg's top live blog. feels like abook catalyst for sentiment shift. >> it did change the sentiment. you think about early on in this season, there was the sense that every bad report we got was indicative of a broader economic weakness, corporate weakness and what we saw with yesterday and morning, it- this

seems to suggest that maybe that is not the case. some of the weakness we saw was specific to this specific companies and industries. julia: at least for now. joe: earlier the characterization was we would see the first assessment of the earnings, whether they were good, and then they would fade. facebook only got stronger. today the feeling is the reassessments were positive. romaine: going back to the sentiment issue, the average daily volume today is about 25% higher than over the short term average. all of the volumetrics that we use were well above the averages that we have been at recently on an update. the only times we have been above those averages is on down days. there is more positive sentiment today than what we got out of the earnings batch it past 24

hours -- in the past 24 hours. julia: what specifically about facebook are people extrapolating to the rest of the companies that are reporting? facebook is so dominant in what it does. facebook, alphabet, those are your main options for advertising online. romaine: they certainly have that monopoly affect. a lot of their growth was because of pricing power, you look at a company like boeing where there was concern about trade and tariffs, they indicated that is not the case yet and you are hearing other stories, there was concerned built into this market about the decline of phones and other harvard devices but they made up .or that with the crypto space a lot of concerns got addressed in earnings reports yesterday. of this has been the

best day since january 2016. snapshot us through a of where we are now as far as earnings are concerned because it has been a solid overall. romaine: we have been in line with what the percentages have s&p, we are around 77% on above expectations. that is pretty good. 83% beating estimates. we are seeing good beats on the revenue side as well. it is not a bad quarter and nobody thought it was going to be. the concern was going deeper into the year, into 2019, and i think those forecasts you got out of the company early in the season spooked the market. you did not get a much pessimism this must time -- as much pessimism this time around. the high watermark, it

was that big fear midweek. joe: the consumer staples, a lot of them were rough. is there a general story to tell about them? romaine: pricing. they cannot raise prices to the extent that they want to, to the extent that other companies can. if your kroger, they have made it clear they have wanted to meet prices but decided not to is a competition. joe: so much for inflation. romaine: let's hope so. julia: for now. scarlet: romaine bostick is the editor for the go live team. up, why some are mistaken about the franchise. a short against dunkin. this is bloomberg. ♪ ♪

scarlet: "what'd you miss?" a tough quarter for dunkin' brands. only a 1.7% increase in revenue. the ceo says the plan he has in place put duncan and a better position for the long-term. discussed --r has disclosed that he has been betting against duncan for a year. great to speak with you. let's take on the call. he says he expects distress as more restaurants struggle in contrast with the parent company doing well. is this applicable to dun

kin'? nigel: good to see you again. what i would say is it is an interesting challenge and i believe in challenges. we have talked about it all day. basically, his hypothesis is incorrect. our franchise feels strongly about it. i had a note in the middle of our earnings this morning saying guysky has it wrong -- this has it wrong. ever franchisees are excited about our growth. the restaurant industry may have slowed up some but when you delve into the numbers, two things come out. we remain one of the biggest store developers in the industry and a lot of store closers -- closures came from independents.

scarlet: this is about restaurant chains overall. he says one reason to be short on these chains is they are asset light. coupons, that is part of your business model, one can this -- when it this lack of assets hurt your brand? nigel: i do not think it does. his hypothesis is we're out to take revenue from franchisees and ignore how they operate, that is clearly not true. system, we focus on franchise relationships, franchise economics, we have done it from the first day. i have never worked at a company where we are looking at -- so myopic in looking at store profitability. his hypothesis that we are only

interested in our own numbers is wrong. he does not understand how we interact with our franchisees, how we get franchisees going in the same direction. we have some differences, we sort them out and move forward and we will continue as we evolve our company in terms of having a store that is responsive to consumer demand and consumer requirements and we will be the leading company in terms of franchise growth for years to come. joe: one of the dominant themes we have seen, we were just talking about it this earnings season, while costs are rising weather on commodity or labor fronts, it has been difficult to pass on those costs. in a fast food restaurant space, you are competing against mcdonald's which keeps offering more aggressive promotions. is this a trend which you see changing?

do see yourself getting more pricing power? nigel: great question. view, from our point of our commodity costs are benign and we work hard at that. costs are increasing and one of the problems we have is a lack of labor in this country. i have said to you before that in this part of the world, unemployment is only 3% so there is not the supply that we would like and that has an impact on labor cost. the i think is true is that key is to get more people through the door. we are focused on our value programs. future,ve this is the the future to mitigate labor costs is our ordering, and mobile which we believe will reduce

labor at the restaurant level. our supplication program, in the last quarter we moved that out to all of our stores. believe we are going in the right direction but the one thing you said that is absolutely right, it is difficult to move prices unless inflation takes off. i hope that is not happen. directwhat is the concern that franchisees bring to you? is it labor costs that you mentioned or consumer costs or even some criticisms that jim chanos was making? what is their biggest worry? nigel: it is simple, the lack of labor. i talked to the administration about it, there is a lack of people coming into the workforce . we're working hard with our franchisees to create the right

culture at the store level so it helps retain people. program simple vacation program wastion about getting more people in the door. in thecannot get people workforce, that will impact growth. it is something we talk about all the time. i was in washington the last two weeks, it is not only us saying it. every company in our industry is saying it and several other industries are also complaining about the worker shortage. more: is paying them increasing your ability to tackle this problem or does the business model then become unsustainable in order to get the labor you need? there is obviously an opportunity to pay people more. there was an article last week

where someone paid an amount and still could not find the people. the supply of workers currently available in the country that is the problem. more than pay it is creating the right culture at the restaurant level in that is what we are focused on. most of our franchisees pay according to the market but it is important that the higher the people who can represent our brand, treat customers with great respect and equity, communicate to customers, provide great service, so you need a minimum standard and our franchisees are conscious of that. scarlet: dunkin' brands group ceo joining us from massachusetts. our stock of the hour is one of the best performers today, we're looking at shares of o'reilly automotive. years after in nine

a resurgence in sales growth. julie has the details. >> there has been a lot of concern about the auto parts industry. concerned because sales growth has not been as quick over the past year, concern over amazon providing competition. this report was a relief for overriding -- o'reilly investors. companyfull year, the said it reached earnings-per-share. this is why the quarter was so reassuring. this has had consistent sales growthgh until the fourth quarter of 2016 and into 2017 you see this drop off. the fact that it is leaping up again reassures investors that that drop was not permanent.

scarlet: are we seeing competitors get the same treatment? julie: not to the same magnitude. we are seeing autozone, advance auto parts on the rise today. first of all, you had a winter that was tough on cars and people need to replace stuff. that should benefit all of them. when you are buying on amazon versus one of these places, it depends on what you need. if you can wait, you can go on amazon. if you needed right now, you cannot always wait. you want to go to the closest store. joe: we will give amazon numbers shortly but is it possible that the death by amazon thesis may have forgotten -- may have gotten laid out -- played out? julie: definitely. this is also highlighted in our options segment.

kevin kelly was looking at a mall owner. in some instances, amazon is affecting the industries that it is in. iny have a partnership retail, bricks and mortar retail without eliminating them. maybe you will see tweaks to these industries. i did want to point out that there is another auto parts company going decidedly in the opposite direction. recyclerore of a versus an auto parts retailer. it is down 18%. that is based on an increase in costs. julia: if you get a part over the internet, but happens if it doesn't work -- what happens if it doesn't work? the follow-up can be important with these things. scarlet: think you some a. our stock of the hour. coming up after the bell,

amazon, microsoft, intel. what you need to know before they report. this is bloomberg. ♪

julia: earnings continue today with microsoft, amazon, and intel reporting after the bell. great to have you with us as always. say and how numbers much is already in the price? >> the two big numbers are revenue -- if they hit the consensus number which is the hedge fund expectation, it would be the top end of the guidance range that came in the middle of that guidance range. we are seeing expectations starting to creep up in the past couple days and seeing the stock move north. the other one we are looking at is the aws revenue number.

we are hundred million dollars above the street now. the data set has been inaccurate over the past four quarters but that number has accelerated a lot and that is where amazon is going to live and die on the number. poo the people poo number for amazon but it is actually the highest quarterly variable over the stock price. is amazon web services. joe: it is like the opposite story from yesterday. today everything was fantastic, everything was fine. bigger picture, what are earnings telling you so far, particularly on the tech? get google numbers, facebook numbers, they are awesome. tax cuts have had a massive

impact. caterpillarsee warning about peak sales, stuff like that. we put out a note early in the quarter before earnings started weary ofwe are evaluations going into the summer, fighting the fat, we had seen upward revisions -- fighting the fed, we had seen upward revisions. it's does not feel like the market is going north. fire, social on media on fire, advertising on fire. , anying that touches business that needs to grow is on fire. out, if i want to point you look at this function on bloomberg, the percentage of the cap earnings, earnings for share, you can see the price change and how it correlates with whether it is a beat or miss.

this is over 20 days. you can see the big miss in the second quarter 2017. leigh: that is aws. joe: we are getting intel after have donend chips fantastically up until the last couple weeks and they have hit a stumble. what you see their -- there? leigh: it feels like apple infecting everything. we had analysts on our podcast, we asked them for one downside pick and both give us apple. everythings seeing that built into apple fall apart. eight did notnd go well. joe: maybe apple should start reporting earlier. scarlet: apple reports next tuesday so a lot of time to rate -- 28.

stick with us as we await the flood of results. stocks are higher ahead of crucial earnings reports from big cap. from new york, this is bloomberg. ♪ . ♪

>> today tech rally stocks, nasdaq leading gains. amazon and microsoft and intel on track to report earnings any moment. i am julia chatterley. scarlet: i am sophie kamaruddin. --i am scarlet fu. joe: i am joe weisenthal. let's take a look at major indexes as we await results from a cap companies. you can see the 10 year yield going down. on stocks,sitive day a reversal of recent days where disappointing or decent earnings, when people reassess them did not pass muster. joe: maybe we should do every other day so we are not tempted to read into much. ideaet: that is not a bad

given every day there is a glass half-full versus glass half empty read. in michael's bring holland. . we are talking about overall earnings. what is your take on it? hold that thought. amazon reports first-quarter eps $3.27, that does not look to be the depth number. net sales $51 billion. ago but wem a year are falling in the whole foods acquisition. net sales for this quarter, anywhere from $51 billion to $54 billion. that midpoint of that range means the average analyst estimate -- beats the average analyst estimate. let me see if i can find a

better number to look at the gap number. if we look at amazon, it is rising by 3.8%. let's do a search on amazon web services. i have not seen anything. julia: i have intel results. i got first-quarter revenue coming in $16.1 billion. , $15.1imate on that billion. estimates, $.87, $.72 expected. we are seeing a boost in overall forecast for intel. the top line has beaten the bottom line and that is not just eps. $.72, 1.7% higher.

joe: i believe this would take us to an all-time high on the stock. it is pretty remarkable. 16, 25, 89. scarlet: i found amazon web services. a.4 billion, that looks to be 49% increase. your thoughts on numbers like these from amazon. is right to focus on. that is where the stock is taking it. these numbers are so good. it is interesting because microsoft is doing so well and ibm by contrast not doing so well. microsoft just reported as you were speaking. $.95 for the software giant,

, higher than what analysts were looking for. it tops the average analyst estimates by a dime. intelligent cloud, the part of microsoft everyone is excited about, revenue is $7.9 billion. they're looking for $7.2 billion. that seems pretty good. lee, jumping here. was there a number people were looking at when it comes to these companies that rely mccloud -- rely on the cloud? leigh: we were looking at $.90 and a crushed that. microsoft and intel put up numbers. julia: intel raising for your revenue in the earnings outlook, thanare expecting more

$2.5 billion more than the prior guidance. from year-over-year. joe: earlier we were talking about facebook and one of the questions is due strong numbers from these companies create a halo where people feel optimistic about everything? microsoft, amazon, intel, is this the kind of thing that boosts sentiment overall? leigh: i do not know if it is a halo sentiment but it does predict future numbers for other companies. this companies are operating in the same economy that is incredibly strong right now. they just put up numbers that but way higher, aws in line we have not gotten clean eps numbers yet. obviously, awesome numbers. michael: i think the halo effect, we do not know what is

going on with headline at running bots and i presume is are pushing things up. there is no way -- joe: the bots are doing their job. you positioning these big cap tech names? have you made adjustments as the season unfolded? michael: all the names we talked about that have not bellied up to the bar to do more, they are happy now. scarlet: that includes apple as well. michael: apple made a lot of money over the years, i still expect to lose money in apple in the next few quarters. i think it is ok. julia: just looking at expense line as well, they have talked about the headwind of doubling down on alexa and shoring up

logistics, we got that headline already from amazon saying they have 100 million prime subscribers. do want to see them making investments? michael: i bought the company before they were making money and i love the fact that they continue to spend big. today they will try to put retail banks out of business. it is incredible to watch. joe: intel up 5.6%. assuage somep concerns that maybe this was just an apple centric thing? if you are heavily exposed to apple it does not look great but the macro picture that ships are going to be everything in the world, that story is totally intact. leigh: you look at what consumers are spending money on. it is connected devices, robots, put out incredible

numbers a couple days ago. works inlook at sky some other apple chip players is are more can find. -- more confined. and weo in the cycles are in one of those right now. i bet on a large cap ones. the smaller ones you get variability. scarlet: what is your think ---chips, -- on a chips what is your thinking on the chips? michael: they will be a leading provider in the future but that is way down the road. they are in a sweet spot now. the only thing that looks slightly negative is the iphone x. to drive it back to amazon, looking at comments, jeff bezos is saying as far as the cloud is concerned, we had a

second year head start when facing like-minded competition and if we are talking about pricing competition, is that enough that there is a difference here? do they have to worry about market share? leigh: i look at it more like switching costs are high and so many companies are scaling in in the amount of data they are attempting to crunch. microsoft may be offering a deal, google may be offering a deal but my company deals with this as well. we handle a lot of data, we got offered deals like that. switching costs are high. you are locked in for a couple years at a time. michael: exactly what he just said. so rapidlyis growing and even with competition among three players, they will all win for a while. scarlet: how big cannot market

get -- how big can that markets get? michael: that is where the future is. what do want to spend? leigh: one thing that's an analyst pointed out to me is the cycle we are in now is amazing is inrmally cap ex financial firms and now they are putting everything in the cloud. we are not halfway through that cycle. michael: it is an explosion. we cannot put our minds around how big this could be over the next few years. julia: you are looking at the s&p 500, it increased five times the amount of 2017. --gh: recently, they relate a report late in the cycle, they have never seen a cycle like this and this will carry forward. joe: when alphabet came out earlier this week, concerns

about costs. with facebook, concerns about having to spend so much to monitor everything. become a concern or as long as that topline growth is there, the business model is more or less sound? leigh: i was here last week and we talked exactly about that. joe: it has been a long week. said: the exact thing i was i do not think sheryl sandberg will let mark zuckerberg kill that ubs number. it is not going to happen -- kill that eps number. it is not going to happen. he will find a way to do it in a scalable fashion. joe: i read to that transcript of that facebook call and you had mark zuckerberg talk about changing the world in the community and cheryl coming in -- sheryl coming in defending the ad model.

saying we will not change it. julia: it seems alphabet and google are the same way. it is just a business model. it is not changing. leigh: the biggest fear would be real regulation and it is hard to see that happening. julia: i am glad you mentioned that. clearly amazon is going to ask about the president, about tweets, they are facing it all. leigh: statistics show the president has zero effect on stocks individually over any timeframe over a couple of minutes. joe: and it always reverts. julia: the white house is not the ftc. let's make that clear. --y are sticking scarlet: they are sticking with us. i want to let you know starbucks released results while we were talking. it added to its buyback authorization, 100 million share buyback. ups matching estimates.

think store sales -- in store sales up 2%. not enough to lift the stock. julia: china is really important. up 3%, the estimate 3.6. the operating margin in china, 17.2%. down 1.6%.argins are scarlet: something to watch further. out with results, first quarter sales beating analyst estimates. million. the loss per share, adjusted loss was $.60 wider than what they were looking for. gross margin declined 3.8% driven by higher product costs because of materials costs. higher input prices for so many of these companies. we will continue to monitor.

this is bloomberg. ♪

>> i am mark crumpton with first word news. bill cosby was convicted of the trucking and molesting a woman -- of drugging and molesting a woman in 2004. he faces up to 10 years in prison for each count. the prosecutor spoke after the verdict was read. place to finally in a say that justice was done. as prosecutors we have a responsibility to see justice and we have to go wherever and to whomever it takes us. >> the judge decided cosby can

remain free on the $1 million bail while he awaits sentencing but he has been ordered to remain in pennsylvania. ,ark pompeo has been a sworn in justice samuel alito to the board -- did the honors. it is one of the slimmest margins for the job in a recent history. pruittinistrator scott who has been in the middle of scandals that have dug him and his agency over the past month testified on capitol hill today. he told a subcommittee the attacks are an attempt to derail president trump's agenda. >> facts are facts. a lie does not become truth just because it appears in the newspaper. what has been targeted towards me and my team has been stories so twisted a do not resemble

reality. i welcome the chance to be here. one member of the subcommittee had this blunt assessment, telling pruitt " you are unfit to hold public office." commemorations were hold in 32 years since the world's worst nuclear disaster. an explosion and fire at plant causedlear radioactive fallout to spew into the atmosphere. dozens were killed in the aftermath of the disaster will be long-term death toll from radiation poisoning is believed to number in the thousands. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton, this is bloomberg. a quick rap of microsoft

quarter,for the third $.95 per share, the consensus estimate was -- 7.7, it hasensus gained a beat. in better than expected. share price down 2% now but performance over the last 20 days still up 5.5%. it has outperformed. joining us bloomberg intelligence senior stock analyst. your take on these results? >> it is absolutely impressive. most every line item you go across is better or nearly the same as last quarter. outbig thing for me to call is the personal computing sector. all in all, very good

numbers. what you think accounts for that? they were modest increases in previous quarters. anurag: one of the -- israg: one of the things there was higher value products mostly in the windows commercial products that is one of the reasons this is so strong. revenueelligent cloud $7.9 billion. how are they hanging in the versus amazon in this race? in the announcement, jeff bezos talked about the big head start the company got over its competitor. anurag: one thing is true, amazon is ahead of others when it comes to base cloud revenue. get microsoft growing nicely. cloud their grewstructure glue --

again, very strong this time. it has been in the high 80's and 90's for a while. amazon web services group this time, very similar to what they had been doing and they accelerated. that is something we will be talking about. this year will be a strong year for cloud because there is pent up demand as well as more dollars to spend on a software. 93%a: looking at microsoft, revenue gains in the same. of 2017. we were talking about whether it is a case of the big guys competing in the cloud, is the pie going to get bigger and we do not have to worry about market share grabs limiting that growth? now, the big right -- the market big enough for all? anurag: one would expect growth

rates to go down. microsoft has been in the 90% range so long. are whose numbers you look at, billion plus or take a few. global tech spending is about to join dollars. -- is about $2 trillion. you still have at least a decade of strong growth the for you can see meaningful celebration. scarlet: that is incredible. microsoftd that, boat in these cloud providers -- won't microsoft and these cloud providers need to increase spending to ensure that jpmorgan and other banks can keep data secure and convince other customers to do the same? anurag: we just wrote about it. we think cloud is more secure than internal departments in

most companies. their architecture is better, they have more encryption. management,identity we feel cloud is far more secure than what people can spend in-house. billion investment in data centers supporting cloud business. do they need to spend more? microsoft has been doing well in this regard for the last eight or nine years, back in 2010, their margins were around 80%. now they are in the 60's. there is a lot of investment going into cloud because that will fuel the next growth cycle. they have done better than any other company. julia: we were just pointing out down 2%, we have seen others showing benefit for better results and in line with what we

are seeing. why the disappointment? anurag: i do not have a good answer. i am scratching my head. probably trading around the 52-week high, i do not know if expectations are even higher. i do not see why. julia: good answer. scarlet: bloomberg intelligence senior analyst. thank you so much. sharesseeing microsoft down by more than 2% despite sales topping estimates fueled by business cloud band and more personal computing came up with solid growth. you are seeing shares of amazon knocking it out of the park. $100, up 6.3%. net sales $51 billion, better than expected. look within the amazon report, it is positive. 8.4%, forecast topping

analyst estimates. let's bring back michael holland and leigh drogan. why are we seeing shares of microsoft fall? leigh: that is a good question. we cannot explain everything. it isund is in quant, based on numbers and given the report i have no reason to believe that should be falling. is still up over the last 20 days. up 5.5%. you look at netflix, it has given back all the gains. these guys have outperformed. scarlet: the softer companies did better over the last couple weeks than other sectors in tech. semiconductors or internet february,that fell in you did not see software companies hit that hard.

joe: we have had time to digest these numbers. we have not got a significant way through big tech india earnings overall that we can extrapolate down the road. what are you thinking going forward as we get out of this quarter? michael: business is a very good across the board. a little weaker in europe, china is ok. i was walking over here a while ago and ran into one of the top private equity guys, 20 companies in his portfolio. he said the companies are all doing just fine. these are private companies. when we are seeing the kind of numbers we are seeing, in the technology, this is where the extra money being spent is going. this will go on for a while but that is good for a lot of things. you, thatpicture on

does not mean the stock market will necessarily go up. scarlet: we have seen the return of the ipo market. private companies strong across the board. is this going to encourage private companies to start thinking about listing ours that still a long way off? michael: i do not think it is a long way. the surprise here for the last several days has been getting decent earnings and stocks going down. you get a surprise upside in the not distant future, you will see ipos coming sooner than later. julia: before we got amazon's results, you said i do not like it at these levels. results --ame at the after the results? leigh: it would not be still in my top set of picks on the long side, not something i would bet against given the momentum. julia: from new york, this is

bloomberg. ♪ welcome to the xfinity store.

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mark: i am mark crumpton the first world news. thehat is described as first trial of the me too movement, bill cosby, once referred as america's that, was convicted of driving and sexually assaulting a woman near his home in philadelphia 14 years ago. timeerdict was the second cosby faced trial on the charges. i wast year when sitting in the courtroom, the jury was fond and i sat with disappointment and it became evident to me the justice system

is light-years behind modern culture. jury has shown that the me too movement -- women are worthy of being believed. mark: cosby was convicted of drugging and sexually assaulting a former temple university employee. dozens of women can forward and accused cosby of similar conduct and he was released on $1 million of bail but was ordered to stay in pennsylvania. the senate judiciary committee is what the heck robert mueller's job, to allow the bill to reach the senate floor. the importance of having a special counsel. people'sunderstand reluctance of having a prosecutor that can go anywhere and everywhere, but what brought this about is a conflict of interest. sessions,rney general

it is clear to me he cannot look into any allegations against the trunk campaign about collusion or anything else because he is part of it. seventhe vote was 14 to with four republicans in favor and the move is symbolic given leader mcconnell's opposition. israel is warning iran that it will strike back, and the remarks were made on a arabic use site. lieberman is in the united states with defense officials. there's a spike in hostile rhetoric since an airstrike on a military base in syria but iran and russia lin dunn israel. groupent trump welcomed a of wounded soldiers the white house and declared his administration will support soldiers and veterans every single day, now and always. the president met with the group to kick off the annual soldier ride.

a four-day event in the washington dc area to inspire service members with injuries and disabilities. 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: let's get a recap of today's market action and the after-hours earnings. you see gains across the major indexes. facebook results sent shares higher yesterday and investors cheering that. dev reason to cheer once again because of amazon shares shooting higher in after-hours trading. up almost $100. if you look through it is positive all around. good is another piece of news based on what i am seeing in tliv . amazon reported that nfl has risen agreement for exclusive video on amazon prime video.

it seems amazon is doing everything they need to be doing. joe: one company doing well expectant after-hours is microsoft. overall it is a company operating well. q3 revenue to play ahead of topline estimates. adjusted eps of $.95 is $.10 ahead of expectations. this has done well. the numbers are strong. julia: intel is the strong benefiting results today, beating expectations with earnings per share on the quarter up 32% versus analysts expectations. on revenue guidance for the year billion. at space $7.5 earnings per share driven by

what we are seeing in the data center business, primarily the data center group revenues but you 25%. this is a strength they are eluding to going forward. scarlet: and in the last couple of minutes, we're looking at a 2.60, a profit of dollar higher than what analysts were looking for. this is with baidu. billion toom 3.9 7 4.7 billion, and the consensus estimate was 3.5, so it is much higher than what analysts were looking for. julia: as far as expedia is in theed, a mixed bag after-hours trade. they did post a net loss of $137 million, and those losses were

steeper than they posted a year earlier. if you look at the revenues, they rose 15% and battle that what analysts were expecting. the other positive increasing 50% -- 15%. out the shares are down double digits this year as well and put that in context of the gains we are seeing. the big three megan automakers reported earnings -- the big three automakers reported jimmygs and we bring in butler us to wrap up these earnings. what is the important take away? >> the big news is fort and the decision to discontinue their sedan business in their home

market in north america. these are still profitable companies that are doing very well, there cost basis is that are in line. i cover this industry for decades and the prophets are a little down from recent years but they are very near all-time highs, and get the pressure coming from the tech industry and the changes going on is forcing them to make dramatic changes like getting out of cars or the way gm has gotten out of markets like russia and india. scarlet: i want to focus on the strategic decision by ford. caps on gas prices to remain low. doesn't fort risk painting itself into a corner and people slow down or stop buying those guys guzzling vehicles? there is a challenging and risky transition going on. the are going to have these cars

for a little while. certainly if as prices go up, they still have their focus to sell. to have a lot of electric vehicles coming and are investing $11 billion for electric models, coding pure electrics. keep it might there is a lot of crossovers with think of as suvs because they sit high and they look more rugged and bigger than a set and. dan. the fuel economy has gotten so much better it pushes at a little. lia: talk to me about chrysler. it looks like sergio will remove his black sweater and where the blue tie instead. progress inrprising

paying down industrial debt. unitash in the automotive will be as much as or more than the debt auto unit has. backis what holds chrysler from being. joe: why does he have to change his attire? >> he promised he would. seoy he was announced as mores of the tie, but since then he has warned a black sweater. he is like einstein who cannot be bothered to change his close. [laughter] ymbolic.ugely some joe: coming up, however it's our handling operational challenges and rising costs.

and a reminder to subscribe to our weekly podcast on itunes. you will find our favorite interviews from the week before you can enjoy them over the weekend so you never have to go a day without listening or watching what you miss. julia: who qualifies this week? joe: check it out. this is bloomberg. ♪

joe: union pacific reporting first-quarter earnings before the bow and our next because them at of the most in a year as the railroad faces rising costs. i spoke earlier with their ceo lance fritz. solid operating ratio and margin improvement,

but the market says we see them as our customers and look strong to us, as long as we get the trade equation right. operating a bright environment for us as we look 3 and q4. you wrote about concerns if nafta was to fall through and the importance of free trade and good trade deals. are using anything specifically, nafta aside, as a response to the early trade actions we have seen from this administration? lance: we are starting to see in the pack at our business in terms of increased steel prices. impact onseeing an all kinds of parts for us. start talking to us about increasing rates or pressures to

increase prices. we have seen that. if theing to guess that threatened tariff actions go into place between the united states and china, we will see more of that. it will make products more expensive, and fundamental economics will probably see less consumption. that would have occurred otherwise. joe: based on the ongoing nafta negotiations, are you feeling more comfortable that there will be an agreement there? lance: i am an optimist by nature and i want to think the positive. all of us have to put a shoulder against making sure these negotiations reach a conclusion, and one that is good for all the trading partners. all three of us. until that time we have to continue to be diligent and work

towards that conclusion. dialogueing language that is more encouraging in terms of inability to reach an agreement and desire to reach agreement. joe: your shares are off modestly with concerns about cost building at union pacific. how much of the specific issue are you seeing and how much are you seeing the cost of doing business rising in general that has been a bit of a theme, whether it is wages, commodity costs, rising for everyone and having difficulty passing costs along? lance: for us it is a unique story. we had a great and solid first-quarter with record eps and improvement in operating ratio. we also called out congestion in our network shielded what could

happen even better financials. --need to us, we have a unique to ask, you made a commitment to shareholders that we are able to keep that up and specifically as we look into the future to continue driving towards a 60 operating ratio and on the way to an operating ratio that is in the mid-50's. i think what we heard from the questions on our call today with our analysts and shareholders was a concern that what we talked about still being confident and generating that kind of productivity, we have solid plans to do it. they wanted us to put a finer point on it and we talked about doing that in about a month. will laye cleared you out more specifics of the cost and efforts in terms of improving productivity in a matter of a few weeks? lance: absolutely.

-- to the second part answer the second part of your question, where we are not able to drive productivity improvement and margin improvement, the answer to that is no. we see some cost pressures in labor. they are not overwhelming. we see a little bit of cost pressure in our network as we put more resources into the network than we normally need to run fluidly. ultimately will pull those back out and get back to normal, and will continue to provide customers with a fantastic service product and be able to thrive in that environment. ultimately will pull those back we have a very good market to compete in right now, and i am very much looking forth to getting that service part to normal. how going back to trade, with a serious deterioration of the trade relationship with china impact your business? lance: if trade relations with

china soured significantly with have an impact on exports and imports. some of the targeted tariffs right now talk about by china impact the agricultural ip to thees that we shou west coast. the farm economies will be negatively impacted and i would start impacting the business that we deal with consumer products and consumption occurring inside of our territory. if profitsrts side, become expense of u.s. consumers will consume less of them or find alternatives that may or may not be good for us. generally speaking, if it is disruptive the consumption or trade flows, in the near term it generally isn't a good thing. joe: that was my interview with

union pacific ceo lance fritz. julia: coming up, take that the keep an eye on. this is bloomberg. ♪

dilluge,day to bu followed by pc and the fed preferred inflation gauge on monday. and the fed rate decision follows on wednesday and the jobs report caps off the blitz next friday. watching,hat he is let's focus on the housing market. i don't you are looking at vacancy rate. with data we got

this morning to set up the table the next nine days. we have homeownership data that includes vacancy rates and household formation. t of is the data poin rental vacancy for houses and apartments that are for rent in this country. you can see it pick up slightly to 7% in the first quarter and hasn't gone anywhere since the fourth quarter of 2014. we are going three years and counting were this has bottomed out. this is kind of important because we are talking about the inflation outlook. when we get the pce inflation data next week we are going to get that a year ago, is going to go up 2%. of the big question going forward for the rest of the year stay at 2% or to roll over to one and three quarters percent?

the vacancy rate that is no longer taking us adjust there's not support for rental inflation that you want to see if that is going to be a big driver. joe: so as prices went up people build more homes and supply and demand? shows vacancyata rates is going down and home prices are rising, but it is the rent that is in the inflation indices the fed target cares about. scarlet: let's look ahead to gdp, we know the president fixates on this number quite a bit. it is a number that encapsulates a lot. and you want to focus on nonresidential, the blue line, and equipment investment as well. >> the white line shows real gdp growth can we get first quarter gdp print tomorrow and you can see over the course of the expansion the first quarter has been bad. that is a jacket downward -- jagged that word.

what is key is to look at the business investment component, and that is the blue line that is trending up. the big story is if businesses are going to start investing. you want that to be high if that story is going to remain intact. specifically the pink line is part of the blue line and you can see that is equipped investment in particular. we talked a few months ago that a lot of that is medical equipment and computers. we are getting broad-based investment and we should expect that to continue regardless of the ups and downs in the headline gdp numbers. joe: in addition to gdp we get employment cost index and another way of measuring labor costs. are member we have a chart showing the plumbing costs index versus average earnings and some of our segments on the show were back here with the blue line employment cost index.

average earnings are discouraged and it didn't happen. what are we looking for and what happened there? >> you will note in that time period that you pointed out in 2015, that was three years ago and we're back to those levels. big you said, does the question going forward, if this will continue to accelerate or are we going sideways from here? you can see that now threat this expansion, the employment cost index is abstract compositional issues that affect the average earnings level. you can see it is in line now. if the number to mark continues to increase that will give us more confidence that the average earnings is going to continue to go up this year. if it doesn't then you have less of a reason to believe that exhilaration and wage growth is coming. scarlet: how does the methodology differ? looking at the average of what everybody in that particular industry makes,

regardless of age or how senior they are in the role. wears implement cost the next controls a lot of that and looks at specific jobs whereas specific people. scarlet: met closer, thank you so much representing a chart that the pay attention to for the next nine days. what you need to know for the tomorrow's trading day. this is bloomberg. ♪

scarlet: stocks were up and textbooks stocks will be up again tomorrow because of amazon. its of japan announces latest policy decisions followed by a press conference. joe: and a look at economic data for gdp coming out at 8:30 a.m. tomorrow. julia: and german chancellor angela merkel mitty president trump at the white house tomorrow. scarlet: that does it for "what'd you miss?". joe: have a great

>> i am alisa parenti. here is a check of your first word news. bill cosby has been found guilty of sexual assault. the 80-year-old comedian was convicted of three counts of aggravated indecent assault.

this comes less than a year after another jury deadlocked on the charges. he could get 10 years in prison on each count. he has been ordered to stay in pennsylvania. mike pompeo has been sworn in as secretary of state your the outgoing cia director heard from 57 senators yes, 42 voted no. pompeo left for a trip to brussels and the middle east after he was sworn in. a defiant scott pruitt faced off against a house committee today for the ethics and spending scandals that force a bipartisan call for his removal as epa chief there this hearing comes fell support rose and among republicans. the u.s. pushing to have a tentative nafta deal in place as officials from the u.s. go to canada for what is expected to be contentious trade talks. people familiar with the talks say they want exemptions