>> final question for you, what is the most interesting problem we've had on the sideline fascinatingilk is and i think there is a lot of people we can partner with two help america eat healthier. i have met several people who have been so running that journey. ceo. is chairman and let's go to kelly for the first news. news.st word >> president trump says his meeting with president trump looks like a go.

>> it looks like something that is going to happen. it is going to be a success, but we will see. , i will not a success respectively -- respectfully leave. >> kim jong-un met with south korea's president friday. israel's prime minister says of --ave relieved half benjamin netanyahu showed -- says they lied and present from 12 to pull by may

out of the deal. venice was present says he is 155%ing minimum-wage by that is making it difficult for people. it is the third increase this year. >> some 10,000 people rallied in .oscow today russian authorities began blocking telegram over its itssal to hand over encryption. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries.

>> live from bloomberg in new york. the conference in beverly hills, california. week,ocky start to the is tech.ajor averages >> the question is, what did you miss? >> benjamin netanyahu accusing iran of lying about their plans when they signed with republican corker.ter -- bob

rising rates and the amazon affect on real estate. sam zell joins us live in beverly hills. >> the global conference is underway in beverly hills. andthousands of executives of course, policy. market heree the and beyond. >> thank you. foreign policy and global politics are front and center. i'm here with senator bob corker of tennessee. thank you for making time for us.

benjamin netanyahu has evidence that iran has a secret program. your thoughts? >> it is nothing new. since 2003.t that the obama administration chose not to pursue that issue. we have all known. it is like the biggest known secret out there. this is really not groundbreaking your it with known this for some time. >> how does this factor into how the administration makes its decision on whether to pull out or stay in the deal #>> i don't think it affects the decision on whether to pull out.

one is greater inspection, so that would focus on one issue. we know they have lied about their previous program. it would deal with ballistic missile testing. right now, as you know, after 10 years of disagreement, they are up and running again. if the agreement did not have much of a duration, that needs to be solved. administration decides to withdraw, what would that look like in the coming months? >> it is hard to tell. i think we would implement the secondary sanctions, which would mean countries and companies would have to divide -- decide if they will do business with iran or business with us? it would take a while for them to change course.

europeans come up russians, china will still be part of the deal after it think the best outcome would be to resolve the problems which is what we have been working with for about a year and that the president has been focused on, so i think fixing the problems would be the best solution. >> many see the nuclear deal as a bad one. if that is the case, why is there such premature optimism that has not -- >> we don't know the components of any deal that might have been with north korea. was a bad believe it deal because of the short-term nature, but with north korea, we are just beginning.

we know for 25 years, they have goodwillantage of the of the west, so i think everyone approaches it with great skepticism.great >> the nuclear deal undercuts north koreaons with to denuclearize. how can washington be trusted in the future? and have argued, you are right. if we are going to step out of the still, what is to keep us stepping out in the future? very goods not a deal.

it expires in seven years. in many ways, there are components beyond that. an opposites message we will not enter into .omething i think it would be best if we fixed it. these two leaders are so unique. i don't think what happened with iran will affect his thinking. he sees having nuclear weapons an old manet to be that dies in his bed. invasionhe ensure doesn't occur? he will be looking at his own security and whether he believes the people who he is dealing with will keep their end of the

bargain. >> the conversation is about politics. let's go more global. >> the plan on remaining in the senate for the remainder of your term? >> it is a great privilege. isi ask, because there national and >> i heard that when i was leaving town yesterday. poll shows the .emocrat in line to replace you how concerned are you that your departure will be a loss for the republicans? people i ran, i told would serve for two terms. i'm chairman of the foreign

relations committee now and the influence you end up having does make you think twice about it, but i felt it was the right thing to do. bill press before me, he ran on a two-term situation. actually, i think it is best for people to have a passion for what they are doing and do the best that they can and not worry about the political tough decisions. >> does that mean you support the president in term limits. >> i would be ok with term limits. i have friends in the senate to .ave been there for a long time i think there is something. people would view me as being a senator.pendent

you're there to serve your country and make tough decisions and i would be perfectly fine with term limits. that -- think that senate staffs would overtake. after being there, i don't think that. the learning curve is really steep. pretty quickly, you develop enough knowledge to make decisions and even though everyday we all learn things, it lines out over time. i would be more fine with that. ?> what is the ideal number >> we have some people that think 10. i think a couple is a good deal. >> i don't know if i want to get

really involved with the debate. right now, other people have to make that decision. >> thank you. he is chairman of the senate were relations committee. ande will have plenty more also steven mnuchin coming up today at 5:30 eastern time. >> coming up, we will talk about the changes coming up in the world of quantum. this is bloomberg.

>> asset management funds continue to increase their

quantitative structure, but what does this mean in practice and how to these strategies of false? of q macro.ounder great to have you with us. talk to me about what going on as far as employing more strategies. >> thanks for having me on the show. i think there is a tendency for funds that are not traditionally quantitative to now think about enhancing the return. i think one aspect is to get consistency around returns and that he looking at value strategies, but also i think there is a tendency to look outside of that area and examine

alternative data. >> does that mean it is less about hitting the occasional homerun and more about developing something systematic that is designed to do well in any market environment #>> i think that is part of it. the trick is to understand how these various factors come together so they will be more consistent over time. >> i can't imagine how that would help in a sense. explain. >> i would say it is not something you would run in .solation not i guessit will -- diversify on every risk. >> let's talk about the recent actions.

we had seen long-sought portfolios do badly, both selling off and every time we get one of these spikes, there is the finger wagging. help us understand. is there a tail wagging the dog aspects -- aspect? >> i think there is to some extent. i would say probably not the overwhelming dominant factor. >> how is that different from any other strategy? what is the difference when you're talking about wrist versus traditional trading? >> i would say there are a lot of similarities. will comemanagement

and say -- i think it is not something that impacts trade more broadly. >> we have seen a lot of these were they hire 10 phd's. is it that simple or does it need to be more ingrained into the operation in the entire fund for it to be effective? >> i think all of it is about .eing interactive it is supposed to be an .nteractive process

that is what i would say the most important factor is when you want to bring can quantity of the trading environment. >> what is the most import and theg as we combine some of data that you are looking at here. can you tie the two together? >> looking at research, trying to volatility and it is quite interesting. if you look at the volume around , it is quite correlated to short-term. >> could be the additional factor. us.reat to have you with now, it is time for the bloomberg business flash. it was at some of the biggest stories in the news right now.

people, the to hedge fund is building a team and has enlisted consultants to help with the effort. ago.is up 118% from a year -- this is the company's -- botox generated more than $817 million in sales, topping analysts estimates. consumer spending in the u.s. come up matching estimates. meanwhile, the inflation linked to consumption hit the central banks for the first time in a year. that reinforces the outlook for

further hikes. that is your bloomberg business flash. , espn working with the social network to create life sports programming for the platform. this is bloomberg.

>> bloomberg has confirmed that hna group is dropping. secretary believed they will drop that deal. anthony scaramucci said to be going back to sky bridge capital . stock of time for our

the hour. abigail joins us with more. twitter pop tire on the news disney arer and coming together to create opportunities and espn among others really part of toys push to come -- become a destination for streaming video. with theoxx sold off advertising revenue so the fact that more content workers are coming in is perceived as an endorsement. >> that is a terrific point. they talk to growth might be a bit muted but the fact they have ready come around.

technically, i love the charts. this chart in the bloomberg. when i first started showing , this entire area of itgestion is going to make could be an upside. course, the speculation hasn't heard anything recently, but that has been a piece in the past. >> it can really help out the company. >> we should mention that.

thank you to abigail. the market close is next. ism new york, this bloomberg.

>> stocks down in tech and

pharmaceuticals. tensions over iran continued to weigh.- continue to live from beverly hills. >> we want to welcome you to our closing bell coverage if you are tuning in on twitter. snapshot on how stocks ended. we did lose ground midway. of course, apple earnings third much the focus for investors. let's take a look at some of the big movers.

-- they agreed to buy their -- 23 point $3 billion. the point that a -- the indications for the deal right now, down some a percent. another shocker. agreeing to buy sprint stock. of analysts coming .ut saying we are 50-50 on this -- he plus side,

topped analysts projections for the latest. the indications that the new dollar menu and breakfast deals are doing the business and investors are liking what they are hearing. with twitterorking to create life sports programming and other content for the social media form, all part of a push to make it a destination for streaming videos. thehat take a look at government bond market. not a ton of action today. you see the two-year yield unchanged. probably what is notable is if yield,k at the 10 year remember, 3%, we had that early last week. we have not moved higher, in fact, we continue to move lower.

that, we have got a little bit of the treasury rally. >> that is helping support the u.s. dollar as well. likeritical week it feels as it creeps towards its today moving average. come of thek it out euro debt earlier on. you can see we are back approaching on the weaker side isfar as inflation concerned. one of the average, a quick look at what we were showing you before. sterling under pressure. also, concerns brewing about the

irish border issue and what that will mean. retreat for the dollar max. again, a little bit of caution from the prospects. i'm just doing a track their which is an underperformer in the space today. >> let's take a look at the commodities starting with oil. i will show a chart there. gold down a little bit in some -- son 1.7%, some of those continue to come up. it is very interesting. you see that around 1:00 in the afternoon. that was during the presentation

netanyahuinister making the case against iran. during back, you did see this fast the bed into oil, but it basically came off, so you can see the premium cost by that. still up, but only by about half a percent. it doesn't change the game on the decision. interesting. >> speaking of, let's get back to beverly hills where stephanie where some of the sharpest minds are gathering. thelet, you have some of

takeaways. i will let you take it. >> to get into his mind in what he has been prioritizing since that announcement. he said his focus is correctly special. it is interesting because go eric and i tried to press david on whether lloyd blankfein would be still leading and he said it still decide on what lloyd decides to do next. we talked about a number of bankers andhese

what kind of opportunity that creates for banks in the industry. he said he is not totally concerned. them an give opportunity to 3 -- increase market share. we did talk about the credit cycle and it has been 10 years since the recession, so we wanted to find out how much risk they should be exposing themselves to. i think people are further along the spectrum in an beenonment more money has extensive, there's no question people are reaching for yield. >> this is something we keep hearing from a lot of folks

attending the conference. one knows what the catalyst will be, but want to be downturn then a all systems go. >> in the united states, the biggest market in the credit space, i think you'll want to keep it in the middle of the fairway. i think the risk curve is quite flat. >> you want to keep it in the middle of the road. investors shrug off a lot of bad news. for the most part, investors .ook past it or shut it off

especially when folks on wall street may not remember what it is like. the lacken talk about of understanding. perhaps you have seen it before. putting up my promotion there. >> was you miss, a market for leaving andat sea diving in spectacular fashion. jim swanson is the chief investment strategist and he joins us now.

>> we can use that analogy wherever we like. the last time you were with us, you have seen key growth. >> it is a great dichotomy. we are delivering first quarter. the market is not responding and i hope -- i think we look at the employment cost index and it is rising. all of this is starting to work against us.

>> why are we seeing that between earnings and free cash flow? what they are to different things. first of all, you have the market doesn't seem to be paying. we look at operating income in the market is showing dispersion. -- the market is looking for work growth right hasand earnings quality differentiated itself from other factors in the market. i think the market is taking a and saying why do we want to be over invested? my view is to conserve capital

here. >> you mentioned the pipeline costs. the other half of the story seems to be the inability of companies to passed on costs, particularly on the consumer and pure at is a tight about the state of inflation now in this overall economy? >> we are witnessing very good growth here in the united states, but not witnessing a followthrough in pricing power. when you take away energy and tech, it is not moving up that much. even in the first quarter of this year, it is telling you the biggest buying power in the world, they are able to price smarter, shop smarter in these increases are not coming as fast as input costs and it is putting a bit of a squeeze on these

companies. you are already seeing that margin compression come through. tie that to how you invest because as you said, you are looking to equities relative to where you have been. , particularly where we are on the business cycle? >> i think you do with the industrials. the stock market is telling us this kind of growth is just not sustainable. with a higher dollar, 43% of the revenues are exports. we have a slowdown coming in germany. i think the place to the is u.s. tech. thatompanies underneath

are trading and they are delivering 16% margins year-over-year. and a littlee now .it more concentration >> just to be clear because there is so much debate, are we talking about the really big tech giants that have powered so many of the gains for the markets? >> know. i don't think that is where you want to be. look at the cloud operators. this is where the growth continues. these are the pipeline

companies. the companies behind them that are providing are so going to be there. the advertising dollars will go somewhere, but you want to be in base where the technology games -- games are delivering -- technology gains are delivering credibility. >> thank you for that. up, faster speeds, better prices. ceo says we can expect. this is bloomberg.

>> let's get to first word news

this afternoon. had the primep minister of nigeria at the white house today. >> especially as it relates to terrorism and that is terrorism here and terrorism all of the world. it is a hotbed and we will be stopping that. also, we've had very serious problems with christians who have been murdered in nigeria. we will be working on that problem. escalated after deadly clashes between farmers and catalyst. house is's upper making it tougher for theresa may out of a deal.

>> today's defeat comes less than 24 hours after the home secretary resigned over immigration targets. members of the un security arrived in the country's capital today. the delegation is expected after the army's crackdown. 700,000 are living in refugee camps. a 13 country police operation has free people from human trafficking networks. said the rescues included some children.

interval said they took advantage of vulnerable populations seeking jobs across the border. global news 24 hours a day, powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. bit forile has made a sprint that has both wireless carriers down. the ceo spoke to see if he would be able to keep the competitive price. >> when i go and make headline statements, when i get with the doj, sec, i'm going to show specifically how you will add jobs in my statement today is that consumers be able to look to the new t-mobile for a

broader set of services for lower prices immediately. will cut courts completely and go with wireless. >> the two parts. right now, what bothers me is that role america, they do not have any choice. hasdband, most of america one or two alternatives. as we trade this new network capability, 5g is going to bring the following things over time. i can point the next three years

, so consumers are going to see faster speeds, better prices. >> i don't think there are too many denying the market is saying it doesn't believe this will happen. what would you be willing to ?ive up it is not crucial to you as it is sprint. >> first of all, both companies will be competing in the marketplace. the reason i'm not answering that question, that is one of those things -- i have are the been clear that i don't think i should divest any spectrum. have,ectrum portfolio we we have about 200 megahertz. that is a key requirement for me

to create what the country needs. the biggest is they don't have clear spectrum. they have to keep customers off lcd. ceo johnas t-mobile leisure. -- john ledger. reasons, given the sheer size. >> i think the feeling is the boj nullifies the arguments that it is good for the consumer. the flipside is if you look forward and john ledger was just talking about live gee, the carriers that will build those networks will take a lot of

money to get us from we are today 28 5g world. if they can't merge, they will not be able to build those networks as fast as at&t and verizon. term.is the exactn to us the a merged into the wood accelerate? >> as i said a moment ago, it .ill take a big-time investment .ou need a lot of spectrum selling point is very .ow latency if you're going to have

driverless cars, that round-trip needs to be almost instantaneous, so you need to portion a lotline closer to the customer and that is why it is going to cost so much. >> that is the critical argument .ere to where you said, it is not believable that this is ultimately better, not necessarily more expensive. what does this mean. what is the argument when this deal was scotched by regulators? regulators ando fast-forward three to

five years in the reality is you will have a true duopoly at that point because t-mobile and almost certainly sprint will be out of the picture in terms of 5g, and so there will only be two choices, not four. i think that is the key. >> i think i'm mystified why the stoxx dropped. there's still a decent chance it .ill get stop by regulators was there something in the announcement specifically that changed people's calculus about the odds of a deal and through? >> i can't really comment on stock prices, but i did not hear .nything that concern me

thank you to the regulators for making their case, but for me it is a good combination. as you were saying, the assets are very complementary. go to a veryy distant fourth position in the market, so to me, the deal makes .ery good sense >> we have made the point coming increasingly urgent. what happens to sprint if the deal does not get done? the funds to have do it. >> thank you for joining us. will hear from

san zellner. -- sam zell next.

>> let's get to first world news this afternoon. the israeli government says they have obtained half a ton of iranian documents improving they once had a nuclear weapons angram and calling it intelligence achievement, regimen that analysis the document shows i read like about its nuclear ambitions before signing a 2015 guilt with world powers. president trump is to decide i make off whether to pull out the international deal with iran. in a caravanekers of central americans are not about to turn themselves in for a second straight day. border factions

has a san diego facility has reached capacity. mexican authorities about 50 people to cross the bridge on sunday, but u.s. authorities told them to wait. a newlans to use electronic system in the months national election that will limit fraud and allow for the results in hours of foreclosing. commission said employed softness of system and found it to be as reliable as hand counting. voters seriously filled ballots think toir fingers in prevent paid voting -- to prevent paid voting. admitted april 22 after he was last seen in public attending former first lady funeral.ush is for's

he is currently recovering. 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. julia: let's give you a quick recap of today's market action. we saw the overall stock majors losing ground midway through the session. the underperforming, the s&p 500, telecommunications stocks. sprint and t-mobile at the tie up there, investors and analysts during the deal of a prospect of 50-50 chance. tomorrow, ending the session higher. with benjaming netanyahu saying he has a huge dossier showing that the iranians like about their nuclear ambitions going into the deal in 2015.

bob corker saying this will a difference in the president's decision. own erik schatzker is at a conference in beverly hills with one of the biggest players in real estate. >> that would be none other than the refreshingly plain spoken, sam zell equity investing group. here is where i would like to begin. tsunami of capital chasing few opportunities. does it feel that way to you? sam: absolutely. perspective, despite all of the gyrations, the stock market is still at an all-time high. real estate is quite to perfection.

gear member of the wendy's commercial, where is the beef? i don't see it. is a challenging situation that requires discipline. >> is it better to be a seller that a buyer right now? i will give you an example of a selling billion dollar company. since we took it over come we have been nothing but sell. have $3.2 billion in cash on committed and we are sitting and waiting for the world to come to it. >> what is it called? sam: equity commonwealth. of $26 or $27 in cash, very hard to sit there and

not pull the trigger. the guys who don't pull the trigger will pull up when it works. >> are you selling other things? sam: the answer is we have made some sales, but generally places we think where pricing is out of line we have reduced exposure. >> or what those places be? sam: real estate. new017 with about 587,000 multi family units and the less we did that was 1971. creating anwere apartment industry in this country. that is a lot of units. in chicago we are adding 20% to the number of hotel rooms.

the same is true of a lot of other places. the beverage everybody is excited about his distribution. amazon and all of that. logistics. is it is getting too exciting and we are building to much industrial space. you need to remember that ultimately in the beginning, industrial space was built and owned by insurance companies. because they required the least amount of skill in order to succeed. we have a lot of people owning a lot of industrial space today, and i am not sure there's enough tenants. just look at what is going on in new york, chicago, san francisco. enormous office

space and i don't see the demand. long before you feel comfortable splitting capital in some of these areas that is oversupplied? we need toswer is, have somewhat of a market clearing. we are a long way from that at the moment. it will likely happen relatively quickly. i cannot give you a time frame, but there's a lot of stuff under construction. it is likeinishes, draining the swamp. you will find out who has tenants and who doesn't, and that is what you will see the beginning of the alteration in the existing supply and demand situation. >> you are a big proponent of deregulation. have a price on overregulation, 1% of gdp.

now that we are in a deregulatory environment, are you seeing what you expected to see and i are taking advantage of it yourself? sam: i think that answers i might have understated how big of a factor it is. it is more than that, and jamie dimon, was quoted recently saying in the eight years of the obama in construction, -- obama administration, as this was waterboarded. we have seen the end of that and we are beginning to see confidence levels returning. us larger growth is a fun should affect that is on the regulatory driven environment. >> that is a talent for the trump presidency, so is the tax bill, what are the head wednesday might encounter?

thatat are the headwinds they might encounter? venezuela, north korea, syria, yemen, we could keep going for it while. but many of those things. >> that they are a long way away from the united states. sam: what we find out from north korea is distance can be shortened relatively quickly and anybody who doesn't understand that will suffer accordingly. >> when you look at the domestic environment of the company is anything that concerns you? about theconcerned left over regulation. we were talking about a lot of deregulation, but that deregulation is still relatively happenedpared to what over that eight-year period. and a lot of other

firms that she had a banking bill right now that is driven by the overregulation that eliminated community banks. the people who know the borrower the best are the people who are put out of business. that is one example. hopefully a bill will pass and we will see more deregulation that leads to more freedom, and a more successful environment. >> you and i have to get to the real estate panel, and you are a panelist and i will be the moderator. asked leave it there for now. that is the unmistakable sam zell at the milken conference in beverly hills. julia: thank you erik schatzker. up, bernie sanders wants to guarantee every american a job that pays $50 an hour. how will that work? that is next.

to involved in the conversation, including the . send me a tweet and let me know what you want to ask our upcoming guest. this is bloomberg. ♪

julia: is time to look at the biggest is the stories right now. the treasury board directed $488 of this year and 47 million more than purposely estimated. the department increases its cache buffer and pepper spray widening budget deficit. the congressional budget office projects tax and spending

measures approved by president trump and congress to push the budget deficit to $1 trillion by 2020. china's hna is dropping index to acquire capital and both sides the grid would take too long and the partnership agreement could be in the works. star which it will return this garbage as a partner, and they are rolling out botox for men and a tv commercial. training thousands of professionals, is accompanied competition.ing they top analyst estimates in the first quarter. and that is your business flash update and there's plenty more ahead. this is bloomberg. ♪

joe: bernie sanders wants to has you, the vermont center a job scripted language the federal government will guarantee a job that pays at least $15 an hour to every american worker once one. has beencherneva researching and advocating this idea for a long time and she joins us on the phone from hudson, new york. with her to a lot of novel ideas lately with people favoring a basic income guarantee and an aggressive use of the tax code to advocate hiring. white is a federal job guarantees the best labor market plan? is good to bee, on the show. guarantee guarantees

workable cannot find it, and we can do all that's of things to spur growth and strength in the public sector, this is well and good. but at the end of the date the economy is a vital employment at jobs for all. run, by short or long happenstance, what the job guarantee essentially is is a public option for work. tosays if you are looking, do what's to the unemployment office and searched on monster.com and have not been able to find suitable implement opportunities above poverty pay, this is the public option. joe: how can you guarantee this is productive work that expands the capacity of the nation as opposed to what people would associate as makework? pavlina: we do not have to reinvent the wheel. value of jobs that

creation and we have public sector very long time. i can list many jobs that are needed, whether those are green jobs or care jobs, or we are dealing with storm water runoff. there are many essential jobs that are low skill and labor intensive that need to be done, rain or shine. they can absorb people on an ongoing basis. the way i envision it is we basically provide a public service employment option. we have many programs to look to for success. i have no doubt we can create 10 million extra jobs that are useful. julia: my first question would be cost. what is the anticipated cost and this is only available to those who aren't in the workforce? and twolk $15 an hour weeks of paid vacation and $10,000 a year of benefits and

$40,000 a year, we are talking about 15 million americans who are earning less than that right now. never mind the ones in the workforce, this can get out of control really quickly. pavlina: thanks for the question. the way to think about cost is to recognize and the knowledge we are already paying for the enormous costs of unemployment. this is a benchmark scenario. virtually every social and economic problem is related one way or another to an employment. this is already paid for and we're expending resources. whether it is crime or incarceration or mental health problems, some cities we tossed here and there in hopes to create jobs but they don't trickle down to the very bottom of the income distribution. this is all paid for and we have modeled this proposal. we fight with conservative estimates, we could expect the

-- we find with conservative estimates that we have not stimulated the cost savings all of these other expenditures that are enumerated. into theo go back present system because they have not been able to find employment. people who are having mental and health problems because of unemployment. there are many social cost we have not stimulated. if we are able to a properly account for them all, this thing is going to be paid for completely. what about the cost to private businesses will find themselves competing with the government for labor? what we are hoping to do is implement a structural reform that creates new employment opportunities for the chronically unemployed. by providing a minimum wage

this program essentially serves as the effective minimum wage for the economy. the private employers will have to respond. that is the objective of the policy. we really don't think poverty and private paid sector plays bisping the economy reduces or sustains. in a number of years to allow firms to adjust, through minimum wage, then you can minimize the structural effect on private sectors. the alternate goal and objective is to create a floor for all wages in the public and private sector that is above poverty wages. joe: you mentioned the term ofimum wage, the other part the idea is by having a public-sector guarantee of a job it becausemum wage, a true minimum wage rather than a minimum wage of potential he zero if you cannot find a job. pavlina: that is exactly right,

all these ordinances are great, but state and localities are trying to pass. if you can't find a job you don't benefit from the minimum wage. if there is a public option for work, then you know that is the minimum that you will receive. going back to the previous question, what this set out and it sector jobs that don't pay $15 an hour? my answer would be not bizarrely, it depends on how it is phased in, because if we do it in the gradual way, the private sector will respond. we have seen this happen with minimum wages, private firms will adjust overtime. i don't expect a very large influx of employment into the program. is to create employment opportunities that are missing for those who cannot find a. joe: pavlina tcherneva thank you

so much for joining us. we didn't talk about training as well, i would love to hear that ceo of dunkin donuts would say to us after what he said to us. to present the people are plugging away at this idea for so long and now entering the public spear with politicians. julia: thank you, bernie sanders. apple may have an iphone problem. several analysts have cut says estimates for the iphone x ahead of apple's quarterly results tomorrow. for more is bloomberg's apple consumer reporter mark gurman, joining us from los angeles. a snapshot of the numbers we are expecting from apple, how are they going to explain what happened as far as demand for the iphone x? is it a belated pickup we are still expecting? mark: every year around the second quarter, live stars to see a little bit of a downward

slight from the faries holiday quarter. slide from the previous holiday quarter. buying iphones because all the websites are talking about the next iphone. the reality is apple has come out with a new set of iphones every year in september since 2012. is already built into the stock price and minds of consumers. and not sure how much longer that its useful work. numbers across tomorrow the first thing we are going to be looking at are those iphone sales. what is the next number you are going to look for? mark: guidance for the third quarter is going to be one of the most important numbers in the minds of investors and analysts. expected to come at a downward trajectory. some analysts project 39 million

units, which is lower than the unit numbers. julia: what about the average selling price? are seeing softness in the third quarter, so what are we going to see in the average selling price? that is critical too. in the holiday quarter it searched for $796 per unit sold, which indicated that lots of people were buying the thousand dollar iphone x or the 1001 or $50 iphone x with double the storage. we are going to see that go down quite a bit in the second quarter. and that is typical for apple results. less people are buying the iphone x and they were in terms of the next, because back then was the hot new thing. it makes sense it will drop. is a: it feels like china critical piece of the puzzle and they lose market share to cheaper rivals. what do expect apple to say and

pending mitigate that? mark: it is interesting because china sales skyrocketed to $58 billion in revenue for apple, becoming the second largest market ahead of europe in 2015, but since then it reported in the mid 40's of millions. it will be interesting to see by the end of 2018 how effect compared to 2015, 2016, and 2017. i got to get into the mix of arele on fun, as they buying from chinese makers, but it is an issue that are battling in the region. joe: you have been following apple for a long time and you have seen a lot of the iphone stories. are people board of the iphone? does this feel different yet seen it all before? it all before,en and you. have a zone, but this time feels different. i have never seen this many target cuts and price cuts ahead of an earnings report.

i spoke to gene munster to other day, a longtime apple analyst, and he put it simply that the days of rapid eye for growth are over. growthseeing 10, 20, 30% year over year and those days are over. it makes sense because the tech industry as a whole is transitioning away from the smartphone to new categories. we are on course. i do not think we will see massive drops, between one and 5%. julia: and those numbers are out tomorrow. don't miss this, this treasury secretary

julie: i'm julie lines and you're watching "bloomberg technology." here is a check of your first word news. president trump says his planned meeting with kim jong-un.

is increasingly likely to go. president trump: i would like the summit to happen and personally, i would like to see at a success. if it is not a success, you've got to get rid of the nuclear weapons. if it is not a success, i will respectfully leave. julie: mike pompeo says resolution between the israeli-palestinian conflict is a top try already -- priority. pompeo called on them to return to peace talks. the adult film actress that claims she had an affair with president trump is escalating her legal fight. stephanie clifford nona stormy daniels filed a defamation lawsuit in federal court in new york today. a spokesman says former president george h.w. bush will remain hospitalized until he recovers from an infection. esther bush was admitted april