chancellor merkel spoke at a joint news conference with president trump. of prime the region is importance. syria and iran are right on our doorstep. it is of prime importance for us and we will continue to be in close talks on this. presidentspoke to about eu exemptions from u.s. tariffs on steel and aluminum that are set to expire in. the house intelligence committee declared the end of its pressure probe saying in its final report and found no evidence the trump campaign colluded with russia in the 2016 presidential campaign. is challenging those findings.

as expected, mr. trump had a different take. he had this reaction during his meeting. a great report. no collusion, no coordination. it is a witchhunt. there was no collusion with russia. >> he didn't conduct a serious investigation. the leaders of north and south korea attended a banquet following their historic talks today. the south korean president said they will be no going back from the journey to peace, prosperity and unification. he described himself and kim jong-un as good friends that

walk the same path. during a ceremony, president trump had this reaction. >> on the occasion of this meeting between president moon and kim jong-un, i want to express my hope that all the people of korea, north korea and south korea can live in harmony and peace. it could happen. hopes one day athletes from the two countries can compete under korean peninsula that is free of nuclear weapons. mike pompeo says he has a sense that kim jong-un is serious -- thehe nuclear rising nuclear rising -- denuclearizing the korean peninsula. america's top as diplomat.

global news 24 hours a day on air powered by 2700 journalists and analysts in 120 countries. this is bloomberg. scarlet: we are 30 minutes from the close of trading in the u.s.. stocks miss at the end of earnings. joe: what'd you miss? u.s. gdp cools. another indication of plaster inflation. merkel takes her turn at trying to convince president trump on the iran nuclear deal and exempting the eu from

terrorist. no sign of success so far. handshakes and hugs between north and south korea. both leaders say they are committed to ending a worsening -- war spending seven decades. war spanning seven decades. 1 critical deadlines and trade took the spotlight. we're joined by mike. .he deputy team leader frosty between trump and chancellor merkel. what was your take away? >> you have this charming press and thise with macron, frosty conference with merkel. the message was the same. no sign of success in persuading the president to change his mind on the iran deal.

he seems to have the same perception and no indication of where he is going on the tariffs. extend them. i don't think that is necessarily the signs that are as strong in terms of exempting the sanctions as they are on the iran deal. the french president left washington saying he felt that trump would pull out of the iran nuclear deal. the president referred to the maximum pressure campaign. he said the chinese president has been good when it comes to the border. explain what that is and how these different countries did contribute. an international

resolve has been critical to putting pressure on north korea. , tomum economic pressure put sanctions on north korea and make sure questions -- countries abide by it. china has been important in tightening the economic pressure on north korea. the trump administration believes that has been the key to getting kim to make , sending a more positive message. scene at the that demilitarized zone between north something toea was anyone who watched international .elations since the korean war

the first time a korean leader stepped across that borderline. the trump administration has taken that as a good signal. have become quite optimistic that they might be able to get something out of this which could come in the next few weeks. it will be interesting to see what happens. there were signals from the official north korean state media today. >> i want to ask about a trump tweet. he was expressly saying he thinks persian see -- president xi of china. he doesn't give people a ton of credit. but he said my good friend president she of china -- china.nt xi of

what does it say about negotiations on trade that he made this point? wellthink if things go with north korea that will put trump and a better frame of mind in terms of trade relations with china and as the summit comes hardr, it is going to be to put tough tariffs on china. they are going to look for ways to deescalate from china for the time being or delay confrontation while this goes on. that as long as he continues to help on north korea. lisa: no we did president trump tweet that, but he said that in the press conference almost word for word. without clamping down on the border as much as they had it would not have come to this place. i am wondering what to get a

sense of germany and the aluminum tariffs, is there anything we can read into that in particular? >> i don't think there is too much you can read in. it does not seem they are close to an extension on that. one of my colleagues was telling me you would not expect them to announce something. were they to do that it would be bad form and undercut representatives. the atmosphere did not seem positive. >> not at all. to the german chancellor first. the president interjected and said tough question. thanks to washington. coming up, the gd report coming out over the next couple of days.

we break down what to expect and how to read everything. ♪

scarlet: today is the star of economic data blitz that could chart the federal reserve's path , cooling in the first quarter. another data point takes the spotlight. sincerongest acceleration 2008. for many that is faster inflation.

we have been waiting for. a pickup in wages. let's talk about the eci and if it concerns what we are seeing. >> absolutely. even if you look at the wages and salaries portion of that, you saw a solid acceleration. it basically means we are saying a pickup in wages. lisa: the white line is all inclusive. the pink line is without bonuses. close. >> that is important for the beginning of the year. you can sometimes see that make it look bouncy. it looks like a more sustainable number. this is important for you. you could look at this and take something from it.

raise reserve full interest rates and not slow down . how does it compare to average hourly earnings. >> they are tracking close together. if you look across the broad number of wage indicators all of them are pointing in the same direction suggesting consumers are getting higher paychecks. i think that is important. if you have been waiting for this to pick in gasquet can, it does look like they are finally getting there. >> we had false dons. everyone is like your come the average earnings gains. >> this spike. that ended up going back down again. >> an excellent point. we might be slightly different now, and i can see the fed taking more comfort, it does

have a cross indicator. back then but we were not seeing was a lot of confidence in the university of michigan or other confidence indicators saying i feel like i'm about to get a raise. i feel like my wage opportunities are improving. that has shifted. joe: we have another survey out today. theame down a little bit in last month. people feeling like they are in a better opportunity. >> it really does show that 's assessment of their situation is trending out. because theseant wage gains might be sustainable and the fed cares about what this means to the real economy. that could lead to the sustainable expansion they are hoping to have. >> can companies afford to pay

the raises? >> that is the question. me personally, what i am watching get a handle on is earnings reports. we are starting to see people mention this. i think it is going to be interesting to hear what mcdonald has to say about their ability to raise prices and how they are feeling. >> something we heard yesterday. not been able to find the right talent. it seems they don't want to pay the right price. so much.thank you a lot of data to contend with next week as well. >> time to look at the business stories in the news now. bowing is in talks to acquire k lx. the acquisitions group would

help boeing ramp up a new division to provide maintenance at other services to the airlines. an agreement could come as soon as monday. george bank could take longer according to an internal min mow -- memo. they plan on making frankford its global hub. not all will move to germany. they will scale back the number of workers to the hundreds rather than the expected stock. withdrawn as , he wascement speaker accused of sexual misconduct during the 1990's by a former coworker, linda vester. she has another journalist corp. rating her story. he has denied the allegations. that is your bloomberg business flash. canadian stocks for

only -- only traded for part of the day. they stop trading after 2:00 p.m. because of technical problems that began around that time. >> they have an early spring friday. i'm sure they are furious. >> if only we should be so unlucky. >> we're keeping and i on different stocks moving at the moment. charter communications. for thembling, heading worst day on record following a disappointing quarter. abigail has it down. this revenues of met expectations, earnings inustments, and the slide

video subscriber adds. we can see what the slide looks like. this is using the earnings analyzer in the bloomberg function. below zero.ds were they are really not liking that. joe: cord cutting is something we have been hearing about for at least a decade. is this when they fall off the wagon? is there a sense that maybe we are getting closer to that moment where it is a big deal? >> you would think that investors may be suggesting that. it is down where it has been before. maybe it was because of this small start and netflix, amazon, at&t. we have a chart.

tv.aps this is g what we are looking at here, charter and comcast, over the last year down 20%. take a look at netflix. fascinating. have you cut the cord? >> a long time ago. >> i am too lazy. i don't know where to find things i am watching. has it changed your life? >> i like to read. that is what i do. i watch dvds. >> you are still getting the red envelopes. you.g up, thank apple,cap catching up to we have the track you cannot miss.

he would not know from the price action in the major indices but it has been a banner year. at least compared to expectations. .e are halfway through earnings companies have been beating estimates at the best pace on record. this is the extent. the 79.5% wer than saw in december 2009 when expectations were low. currently you have 82 of the 255 members that have delivered better than expected profits.

the average beat is a standout. the highest level since 2016. when you see how it has performed, it is up less than half of 1%. >> if they are not impressed by this, what will? we got the earnings out of amazon three people are impressed with this. they managed to turn more of a profit than people expected while continuing to spend exponential amounts of money on projects. you are looking at the market capitalization of apple, the blue and white line of amazon.com. they are converging the iphone but he meth, as people question these super cycles, taking over the world one industry at a time.

joe: there is always a lot of interesting data. here is another way to look at what is going on. the spread of current conditions and expectations. current conditions are very high . forwardions data going is not nearly as enthusiastic. this chart plots the spread. guess here.6 point it is pretty low. sometimes this can be a harbinger of an economic downturn when you get at depressed levels. the last peak of cycle. people feeling very good but anxious. 2001, not so much. in the 1990's you see the same thing. expectations, not so much.

out of thencing bottom. you have not seen that ongoing lift in the same way you feel of current conditions. you see with the manufacturing surveys, they got a lot of attention. people say i am a little nervous. lisa: what about caterpillar? joe: same thing. scarlet: a consistent theme goes to our charts. maybe this is as good as it gets? are defeating expectations. a quick note. the toronto stock exchange has shut down early for the day as a result of technical problems that began around 2:00 p.m.. the u.s. stock market still has a few minutes left to go. change.at little the nasdaq struggling to hang

onto a gain even with amazon rallying. this is bloomberg. ♪ welcome to the xfinity store.

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lisa: start seeing gains and losses and another early holding on to gains with 10-year gilts falling for the second day after hitting that the percent mark earlier this week. i am lisa abramowicz. are tuning inu live on twitter we welcome you to our closing boat coverage every weekday from 4:00 to 5:00 eastern. we begin with market minutes, yesterday we were saying went amazon was according earnings that tech stocks will rally and amazon is going to much. but not so but nasdaq was up earlier, no follow-through from those stellar earnings, or what we thought were still there yesterday. some nervousness for the b

ulls. scarlet: if you look at the performance in the past five days, there hasn't been a clear trend this week aside from is all over the place. the dow, s&p, and nasdaq closing lower for the week, and the doubt offs extensive 1% in the nasdaq down 4/10 of 1%. it is earning season and we're halfway through the first quarter of earnings season so let's look at how exxon and chevron did. the big energy companies get the contrast,d there is a chevron beat estimates while exxon fell short of production and profit. soft chevron take advantage of racing sharely, buybacks later this year, and exempt posted -- and exempt on with its worst

quarter since the merger with mobil. amazon from subscribers are doing great, and corporate customers coming to amazon. and charter communications, something abigail highlighted as the stock of the hour, the worst plunge for charter in nine years following dismal results and renewing concerns that the number two cable u.s. provider cannot hang on to customers. joe: now let's look at the government bought market starting with a two-year and 10 year. the 10 year yield down a little handle, downp 50% to 2.96. if you look at the intraday chart of the spread, we see at 8:30 a.m. we see the debt, so it raises concerns of a fed mistake because of that number given

confidence to the for hike crowd, but the data not giving people so much excitement that they want to lift longer rates. lisa: people are concerned about a fed mistake. i want to get to the dollar because that is driving action in the past week. buteuro managed to gain that is recouping some of the losses the euro experienced over the past two weeks. the dollar weakening substantially against the mexican peso in part of optimism about master agreements -- nafta agreements, with a deal possible. and the pound, scarlet pointed out earlier the terrible numbers in the u k, plunging against the dollar. finally on commodities let's against oil and gold

because there's not much going on. oil is down modestly and people are watching signals for that iran deal that will be the biggest thing in the medium-term and what could affect supply, but not much action today. gold getting a tiny bounce of half a percent. scarlet: for more let's begin romaine bostick. we were talking about this this is at its good as it gets because when you look at the earning season, the percent of companies beating estimates, it is around 80%. andve it on the bloomberg companies are not rewarded for that necessarily. romain: you look at the market reaction at some of the worst market reaction, you look at consumer staples, they have partn the selloff, but the of the issue is surprised. if you take in this environment,

we get paid off with a surprise at least on the idea the rest of the market. getting the forward-looking guidance and outlook that is going to provide more momentum here. let's talk about today and the fact we couldn't see any real sustained enthusiasm from those reports last night. yesterday when we got facebook, it was solid throughout the day, and today is a damper. romain: look at amazon and facebook and the technics, and did you saw them it sold off probably. you also have to keep in mind where we go into next week as well, you still have apple out there. it is down 1% since we got the taiwan news a week and a half ago. note's a lot of concern

just that apple itself is going to do poorly and wait on the market, but it may report something that is more indicative of consumer demand at the broader tech sector. back to the to go chart and how much this has to do with the tax cuts feeding into a one-time gain that perhaps one be seen on a steady level going forward. is anyone talking about this being the sugar high of earnings we cannot repeat? when we came in to this earnings season a lot of folks were saying this will be one-time gains and there was concern it wouldn't replicate itself down the road. there others inside the effect of these tax cuts hasn't kicked in for some of these companies and it might be a few more corners down the road before we start to see it again. scarlet: that is what kathy rogers told us. what i can tell

you is there is a divergence with certain companies, particularly on the industrial side and some of the consumer staples that do stand to benefit on the road should the tax cuts sustain the economy. as with a lot of economist rev suggest thaterg maybe that might not materialized in a way that the trump administration is pitching. scarlet: we had gdp data this morning and we have the fed next week. i know you mentioned apple and i will be a big catalyst. is the fed going to be a big driver next week? romaine: everyone is pointing to the core pce number we will see on monday that will give us more indication that it is in line with how the fed used things. and we had the fed meeting itself. scarlet: surprise expected. no suppressed my but

maybe a surprise amount researcher their statement and what have signal to give the markets about where we are going with the hikes. another market is still pricing in so below what the fed is telegraphing for the next year, said it will be interesting to see if the fed changes expectations. joe: we have a ton of earnings next week, is a lot of consumer oriented. 100 47 s&p companies mcdonald's,xt week, abm, companies that reflect back on the consumer and reflect on this economy. will be interesting to see what they can do. the expectations for those companies are relatively high. if they come in well and apple does poorly, it could still provide enough support for the market. we did fall off a cliff today or this week. lisa: it felt like it because the results were so good. romaine: we are stuck in a tight range. we are not shooting to a month, but we haven't fallen off a

cliff yet. editor ofine bostick, our top live blog. you can follow romaine and his team's work using the function tliv . mix --up, the lexington the vexing vix. from new york, this is bloomberg. ♪

mark: i am mark crumpton with first world news. mcdermott to end the war that

began seven decades ago, north korea's kim jong-un and south korea's moon jae-in held a historic summit in the demilitarized zone that divided the country's. the two agreed to a nuclear free korean peninsula, but north korea is not expected to give up its nuclear weapons easily. the news media urged the us to drop in hot hostile piracy. olicy. the meeting is encouraging news but he warned it is still too early to tell how things will pan out. >> the most important thing today is the walking the fact though there is a long way to go before we see resolution to the crisis of the problems we see on the korean peninsula. i think this is a very important

first step. mark: he also met with mike pompeo in brussels and the rest secretary of state arrived there after being sworn in to meet with nato ministers. it showed mr. pompeius commitment to the alliance. hundreds gathered at the border fence in israel today trying to rip through it after drying heavy israeli fire in one of the most violent incidents yet in five weeks of protest. some fatalities were reported. the united nations is coming from israel from refraining from using excessive force against the palestinians. a spokesman for the admin rights office says during the past four its have beens to killed and over 5500 others injured. killed were taking part in demonstrations. most of them appear to have been

unarmed the presenting an imminent threat to the iss at the time of their killing or injury. no israeli casualties are reported. says israel's military troops are under order to target what it calls instigators, but has also warned anyone approaching are trying to damage the fence risks his life. former president george h.w. bush continues to recover but will remain in a houston hospital through the weekend. he is being treated for an infection that spread to his blood. mr. bush was last seen in public attending his wife's been rolled a week ago and is said to be in good spirits and looking forward to resuming his schedule. 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: we have breaking news,

never say never because t-mobile and german owners are advancing towards a deal that would value spread at $24 billion according to people familiar with knowledge of the matter. the two previously held discussions on joining forces, with those discussions locked down after they couldn't agree how to structure control of the combined companies. ofer the current valuation 24 billion, spread shares will be worth six dollars and tencent areece, below the 6.5 they trading in the afternoon, and ec shares are tumbling in after-hours trading, up by 11% that8 aps, and a big shot did the bloomberg team here. fears ofntly providing fear itself, joining us now is pravit chintawongvanich, head of

strategy. after that xiv below, there was concerns about the ease of which vix can be pushed around. and then there's an incident weeks ago that spect out of nowhere and no one have asian ford and a lot suspected manipulation. what is your take on this? is a problem with the calculation or ease in which people can push it around? important to differentiate the vix index. what you quoted on tv, there's a whole universe of traded contracts tied to the vix settlement. the vix settlement last week is what people are talking about. joe: it was just last week? it has been a long week. pravit: when you think about the money types to the settlement, is different from the settlement of an oil futures contract or

-- oilre a bit of derivative. the the vix you don't get physical, they determined the settlement and whatever the number is determines how much money it is at the end of the day. number determined by the cap lidded on wednesday, and if the number is wildly out of line it is going to be questioned, and that is exactly what we saw. lisa: and you are pointing out last week there was potentially one traders went a material impact on this closing price. is that a concern? concern, i won't say if it is manipulation, but it is a concern if one trader submitted orders that pushed the mix up two points from where it was observed at 9:00 a.m.. it does amount to a lot of money. scarlet: there is a lot of

misunderstanding surrounding the vix and the ecosystem around it. when they first put together the vix the index itself was meant to be uninvestable product or something people want that on -- thabet on. pravit: there's a lot of people who use the next two are unaware of the witness that you can look at it last night or 30 minutes before, and you will be sure that it will be this number, and it jumps two points. that is what people are worried about, the mechanics of settlement and the affecting the settlement itself. joe: as to what the actual volatility environment. could be more volatile few months leading up to this period . what in your do is the best explanation we have settled into this new regime? pravit: is volatility here to

stay? think it is tempting to look at expect -- it is tempting to look at 2017. and we look at long volatility. definition at some point it will end, but they are not followed by high volatility. that is the tempting think we have to stay away from. sony to figure out if where in the new volatility were jim or not, unlike looking at the macro factors that can drive volatility. is factors include economic activity and what is gdp and pmi's coming at. an policy uncertainty around trade or what the fed is going to do. and then corporate performance, if companies are making money or not. they are making money but they are unwilling to say how it looks in the futures s volatility. pravit chintawongvanich like you

for joining us. cloud up, tech is on nine, and our roundup is next. this is bloomberg. ♪

scarlet: alexa, show me the money. so's topoubled and billions of dollars, and amazon said it will do even better going forward. joining us more is possibly need. -- paul sweeney. is there any fight in the ointment and they are a little

skeptical or a little bearish to say that is something i'm not totally convinced of? it was pretty good earnings, and people look at amazon historically they sadly at the top line because our company, jeff bezos by his own admission is delivering near-term profits, is putting money back into the business. does the second quarter in iraq when he has delivered strong net income -- this is the second that he has row delivered strong net income, and amazon cloud services and their advertising businesses -- both are growing quickly on the top line, but more importantly they are very profitable businesses, like the core -- unlike the core e-commerce business. that bloomberg

is like highlighted is the plan for a collective $16.2 billion in capital project spent in the first quarter. can you give us a sense if you think they are spending this money on worthwhile projects and why investors don't care as much about these expenditures as they do about those types of spending projects at non-tech companies? this is a big capex corner because a lot of the stocks were rallying because they are the beneficiaries of the spending come and out of these internet companies. investors are supportive of these internet that driven companies stepping up their cap theand recognize long-term return is for

spending, and these are companies that have suspended where they see growth. has delivered the growth for shareholders of the get the benefit of the doubt from shareholders when they step up spending. scarlet: their spending a lot on human capital. joe: apple next week, so much attention going towards that. it feels like the bar has been lowered quite a bit based on various chip companies that have reported already. is it possible the bar is so low they can jump over it? this has become a phone company, and the phone is is is a maturing business and parts of the world's more picture than others and apple is very comfortable with the high-end of the market as they pursue their global strategy. the part of the business they are trying to talk about more is the services business, the business that is going when you talk about itunes and other

services. i suspect he will see the company increase their focus is the talk to shareholders. that is where a lot of growth going for it is going to come from. and to try to get the market away and waiting for the next product refresh cycle, is the market is maturing for smartphones. you mentioned services business and in the recent quarter there is the argument and debate that is apple get credit for its non-hardware revenues the way it deserves to. has this question been settled in some way? is it not as valuable as data and services is for other competitors? help was that joe lies this. help us contextualize this. -- ithas we're their way has weird away from everything .lse and it is a story

of play of the iphone unit sales as the market has matured the company has been investing more and more in services is this is an try to get shareholders to focus on their business as another source of long-term secular growth for the company. marketsuggested to is not there yet and are not paid attention as much as they need to if they want to remain bullish on this story because to the extent you want to remain bullish, the services is this has to come through in the next three or five years. lisa: thank you paul sweeney, coming from princeton. recyclers thing with waste management, and we talk about the text earnings, i wonder if anyone has been attention to the european privacy data rows that are coming out? more to come from new york, this is bloomberg.

♪

mark: president trump says the potential venue for his upcoming meeting with kim jong-un has been narrowed down to a few locations. he spoke today after welcoming german chancellor angela merkel to the white house. we are an total touch with north korea and south korea and we will set up a meeting shortly. we have it broken down to two or three sites. openly will have great success and we'll see what happens. the: the president added u.s. is not going to be played during discussions with north korea. 's comments came after the

historic meeting between north korea's kim jong-un and south korea's moon jae-in. mike pompeo addressed nato allies in brussels for the first time as america's top diplomat. , warnedwho was sworn in the alliance about kremlin efforts to undermine democracies. >> russia threatens allies militarily -- and they are in a aggressive campaign to undermine democratic institutions. in light of russia's acceptable actions, as nato allies agree, the use of military grade weapons used on u.k. territory but the lives of innocent civilians at risk. mark: the secretary also says the u.s. is committed to the greater but it demands burden sharing. european council president says macedonia has made impressive progress in its bid to join the

european union. he says the country's new government has the political will to gain membership and the block as well as nato. macedonia hopes to start a session talked this summer, but it must first make progress on reforms and overcome a dispute with neighboring greece. a tentative that the deal in place before u.s. delegation has to china for trade talks. mexico's economy mr. says despite progress on key issues, it is to have an agreement in principle over the coming days came up short. in the meantime, technical discussions between lower-level officials will continue. ministers will meet on the matter on may 7. 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: we have breaking news with regard to scott pruitt, the

white house had of upa agency, and the watchdog has opened a probe into his condo rental. that is the latest, confirming the pope in a letter to lawmakers. that epa administrator scott pruitt has been going through hours of grilling, and blank subordinates for allegations that have endangered his tenure. joe: and so for years hanging on. scarlet: his lawyerly response a lot of praise. lisa: and trump is backing him as well. and t-mobile and german owners are advancing on a guilt that will value of sprint at $24 billion. to need us is bloomberg's deals reporter. price, is about this 6.50 it is trading at

right now, who is getting a better deal? the reports of the latest round of talks has come out, and a leader you had a report that the talks may be concluding and there might be a deal announced in the next couple of days. last night they close to run for six dollar mark, and that someday it was about control. looks like they are ready to give up some of that. latest talks could still fall apart, and this is one of the deals that every once in a while comes back. does it feel like this is the furthest along in closer than the other times? nabila: last november they were ready to announce a deal on monday, and it fell apart on friday night in tokyo. our sources are reluctant to say this time it will happen on sunday or monday because of what happened last time. if you look at where the shares are traded, there is no impetus

to do the deal. lisa: he can't keep going with this because it's spread will not stay in business if it does not find some new position. scarlet: thank you for keeping us up-to-date and giving us perspective on these talks. the recycling industries because customer has become much pickier, china is imposing stricter limits on contamination in scraps and banning some products altogether. jim fish, joining us from houston, texas. there was a downturn in global recycling markets and in china moved last year to ban 24 types of materials could suggest the downturn of the longer and more severe than originally expected. talk to us about what is waste management's response? could lead to a longer

term downturn, but what appears to be happening is china is tired of importing our trash, to put it bluntly. they have reduced the amount of contamination or trash within coming over that they will accept to .5%. what it means for us is that not a lot of our material is going to china right now. two things happen, what is they changed the percentage, and secondly they didn't renew import licenses on their end, so it puts all of the exporters in the u.s. in a difficult position. they have just recently started to renew some of those licenses, but our percentage of cardboard going to china has dropped precipitously. 2% or 3%porting about of cardboard not to china and

the rest of staying domestic or going to alternative markets. lisa: how much did they used to take? jim: we used to export 75% of our cardboard and almost 100% of mixed paper to china, and has dropped almost to nothing. scarlet: to what extent can they make up for the difference, that is a big gap that we talked about their? re? i can't imagine these other countries can absorb what china once did. jim: they may not absorb the entire amount but for us they have been able to observe our export volume. there is a cost though, because as you can imagine it is a longer haul to go to vietnam or india than it is to china. we were a backhaul with containers going overseas to china. hallnstances forward coming from india or vietnam, so there's a cost increase.

lisa: is that mean you are less in general because there is less demand for what you have? jim: it does. we reported last week in the first quarter we saw a $45 million drop in our recycling business. there was conversation about recycling on the earnings call, but the rest of our business is doing very well, which is 90% of our businesses that is unaffected. but it means we are last week comes to recycling. scarlet: as a result of what china is doing, to address the problem, i know you said you can slow down processing lines at recycling facilities across the nation to make sure there is less contamination. is that something that can pay off how quickly can you see results from that? jim: it is a bit of a double edged sword because when we slow down recycling plants to make sure damnation drops, then our process and cost increases and

we saw a 50% increase in processing costs. there are two sides of that coin. i think long-term recycling is a great business and the business we are committed to. we just have to figure out how to share in the cost side of the equation of our customers. reduce thes we amount of contamination coming in to our clients. right now we have plans for 40% of material coming in the front door is trash, basically. the: taking a step back, 30,000 foot view, do the united states is going to recycled substantially less as a result of china that taking in our waste? jim: no, i don't. the u.s. will continue to recycle what it recycles, and that puts the burden on the processors to find a home for those recyclables. we are fortunate we have real established in countries like vietnam and india, but what it is putting pressure on his those

who did it not, and part pressure on price cost we are not immune, but he are fortunate to have alternative markets. scarlet: jim fish, thank you very much. coming up, handshakes, hugs, and history, it touched and the korean war, or were today's events simply for show? joe: and get involved in the conversation and send me a tweet at my handle. i checked twitter during the show and maybe ask a question you propose or hrt like. like.a chart that you check it out. scarlet: you have to hundred 99,000 tweets? this is bloomberg. ♪

scarlet: history was made today with the two koreas agreed to end their more, the first north korean leader to venture to the south where kim jong-un and moon jae-in must the complete denuclearization of the korean peninsula. here to talk about the long road ahead is director of the korean society adjunct professor. easy, welike it is too are short on details, and there has to be at least one catch. >> it is a long road ahead, it is something to be excited about. good for cautious optimism and important to the korean people. there's a lot of enthusiasm, so let's see how it plays through. joe: from your perspective how

surreal was the images? we are used to the kim jong-un photos where he is looking at the rocket or some factory, and then seeing him mel about and chat. stephen: it was mesmerizing, caught the attention of the international community and do so someone different and more animated. yes self-deprecating and decent have a chemistry with the south korean president moon jae-in, this is a young leader in north korea was an accomplished president and south korea. area that did not see these images as north korea and it was not broadcast under national television. expectndering if you opening up and reunification of families in north and south korea as a result of this, and is if kim jong-un and upper hand in some ways and legitimacy he didn't have heading into negotiations with president trump? stephen: that is what he is looking for, legitimacy and a

backing off on sections so he can strike at modernization. was to do that again viability and survivability. but, it is a new state and his truck to prevent himself in a different way than the father and grandfather, is with moon jae-in pick up on that is what donald trump was applauding today in his tweets about the korean war to end. it is a long road, and make that road and conflict and replacing the armistice with a treaty is something that at this point may just happen. 8,rlet: what are the next 10, 20 steps government that needs to be taken? who reaches out first, or is it .coul fore stephen: they will be in consultation and there's some of

this amount of time ahead and how the deescalated tension, so -- it isy the dmz easing the dmz and preparing an exchange back with the south korean leader to visit north korea. is a multifaceted process to strike at confidence and the better easing of tensions. there were in turkey and summits in 2000 and 2007, a different and similar is this? stephen: this is different in the first president, they were older at the time and there were meeting with kim jong l, who was towards the end of his life. his is a young north korean eater meeting with a popular south korean president. there is a might shift among the public. joe: my favorite charts today pointing out 2000 and 2007 this market tpeaks.

lisa: we will continue with the symbolism. southondering with the korean leader how popular he is and how popular the move he made today are with south korea. stephen: yazzie has a 70% approval rating and is higher today. there's a lot of enthusiasm in korea today. but there is a conservative faction of older south koreans were concerned there will be too much given away in the process, but when is as funding a general and popular feeling that we want gradual integration, and that is where the change in mindset coming into play. scarlet: so denuclearization is with everyone is aiming for. maybe i am jumped ahead, but how far away are we from reunification? stephen: that is a way off, you didn't hear about reunification spoken about explicitly. ending the war and moving to a piece for jim, then

denuclearization is something that will be a long process, multifaceted, will be complex. libya, so there is a huge trust deficit between the united states and north korea. but with south korea managing the process, it is something to go forward with. and onoing politically security fronts, and this is the beginning of a process. if kim jong-un and company, that is another beginning of another process. lisa: and also china and the role it plays. scarlet: and russia and japan. exploreming up, we will recruiting employees. from new york, this is bloomberg. ♪

arlet: tapping into autistic employees. diversity in the workforce, with ityt but the universe' leader. >> we partner with nonprofits and vocational rehab, and these are folks and agencies looking for meaningful work for individuals in the autism spectrum. we know there's 80 to 85% underemployment, so we think we are matching in this is need to a palpable looking for work. scarlet: give us some numbers inause the program began

philadelphia and has spread to dallas, how many people have you hired and where are the place? what businesses are the end? we have 14 individuals today, and we are in the process of adding six more to our philadelphia location. scarlet: out of how many candidates? candidates --50 40-50 candidates. we began to experiment in a way to see what type of work would really benefit these individuals, at what we are finding is everything from robotics to quantitative and gnosis, data analytics, cybersecurity, it is helping to play to their strength in areas they are interested in. for us it is meeting our business needs. there are challenges and i wonder what the specific challenges is with this graphic, is it show as

a bottom line cost, and is it a time commitment or monetary commitment? hiren: it is a great question, the changes with make is anything from the recruiting process, instead of a one-on-one interview that may happen to or three instances, ours is a two-week interview process. there is a commitment right there, and we are finding we are frontloading all of the information someone would normally get over the course of a year, and it is forcing us to organize that upfront. we look at a 90 day runway for individuals, making sure they have context and understanding. it is helping us to be better managers and leaders to everybody else in the firm. scarlet: a super intense orientation. is the government subsidies are contracts as a result of hiring this population? wonderfulsaid it is that companies like you why are

raising the diversity five, there is a benefit as well. government subsidies vary for certain government contracting there is some quotas in place. for us we do this because we are bringing the best time, so whether it is savings or opportunity to is the wish ourselves in the market for the innovators in the space, we're finding the benefits apply across the board without government subsidies. scarlet: to follow on a point, i wonder if it matters if there is a government subsidy. is that a good or bad thing the government provides incentives for companies like ey. talking about gender, sexual orientation, race, or physical or mental disability, as long as done, the end result is what matters. hiren: what the rest of the market and business to get into this. we think government subsidies may help in that regard for companies to get, how do i make the time investment and commitment?

part of what we are doing is open sourcing, and we want others to get into this and we think it is a good thing for business and the community. scarlet: talk about the people you do have placed at ey. moving up and escalating in the company and moving to managerial roles? hiren: absolutely, would have some great examples. we had a project that will take five weeks that was completed in three days. it is highly technical work that will get them come and the individuals working on it, one of them was previously a genter at the children's school -- was previously a janitor. an individual has aspirations to be a day to a dataist -- eight scientist.

is then getting sported to the kind of work and moving to where they ultimately want to lend. and. coming up, what you need to know. joe: this is bloomberg. ♪

scarlet: bill change in u.s. stocks for the day, but for the week they finished down. coming up, global converts kicking off on sunday, tune in for our special coverage on one day. -- on monday. joe: apple earnings and lots of earnings, but that is the big one. lisa: and don't miss the fed rate decision on wednesday. starting at 1:00 p.m.. the technology is next. joe: this is bloomberg. ♪ retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. every corporate office, warehouse and store

near or far covered. leaving every competitor, threat and challenge outmaneuvered. comcast business outmaneuver. >> president trump invited

angela merkel to the white house today from an agreement germany believes should stay in place, and yield exemption from the u.s. tariffs on steel and aluminum is also said to expire soon. internal one stock is opening an investigation into administrator scott pruitt's rental of a condominium the lobbyists. the government's top ethics officer asked the epa to scrutinize that rental. tentative not be a masthead deal in place before rest of ignition heads to china for trade negotiations -- there will not be a tentative nafta deal. a question have an agreement in place in principle over the coming days has come up short. ministers will meet again on may 7. the two koreas have formerly a grid to end the war that began seven decades ago. korea's kim jong-un and south korea's moon jae-ihe