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 20 two after attending barbara bush's funeral.

google news 24 hours a day on air and on twitter powered by more than 2700 and analysts in more than 120 countries. lyons and you are watching "bloomberg technology." ♪ emily: i'm emily chang and this is "bloomberg technology." we are live at the milken institute global conference in beverly hills, california, where we have been speaking with top newsmakers. stay tuned for interviews with u.s. treasury secretary steven mnuchin. t-mobile buying sprint for $26.5 billion stock to take on verizon and at&t. some still fear the deal will get blocked. it we will hear from ceo john

ledger. apple earnings are just around the corner and investors will finally have an answer, did iphone x sales live up to the hype? but first, to the sprint tumbling 10% and regulators may reject t-mobile's agreement by a company worth six point -- $26.5 million. sprint are hoping it will let them get a jump on verizon and at&t when it comes to building a next-generation network. with t-mobiledown ceo john ledgere. >> talk about the deal and talk about the value to shareholders. and second, talk about why it will get approved. those two things together will drive shareholder value. is actually 140 $5 billion

enterprise value combined company. what we are going to have starting from day one is $75 billion to $57 billion service .evenue that will grow tw 2% to 4% annually. a $6 billion run rate, and the cash flow by 2025 will be eckstein billion to 18 billion. if you are a shareholder, this has huge value. people are asking the question, why now? and will it get approved iago that is my job starting day one. i am so confident in the plan that we've got. and right after we are finished, i'm going down and i will be there quite a bit. we have three points. was different now? 5g.

it is imperative. the nation's leadership in 5g is at stake. we have fallen behind china. t-mobile and sprint together is the only company that can change that. 5g is critical for the country. we will change that. the uncarrier. we will supercharge the uncarrier. customers can look forward to a broader range of service, more rural competition, more broadband competition. and last of the three, jobs will go up. and when that happens, the shareholder prices -- >> these are the three pillars you're going to pitch to regulators. a job positive merger. and particularly good for the rural consumer. so that is squarely in the administration's court. and fending off china and korea. i threw korea in their on 5g. to sway aough regulator that has only given the go-ahead to one media deal?

the others have been a lot of trouble. ,r. legere: the statistics are our country is a leadership in 4g. were three point three dollars trillion globally in the global economy driven by what we did. uber and snapchat came out of the 4g leadership. facebook, amazon. these companies grew because of it. in 5g, what will be critically important -- we will invest $40 billion in the first three years. we will take the 2.5 gigahertz spectrum and create a mobile player that will drive this leadership. we expect what we do will then force at&t and verizon and others to invest significantly. now,se what is happening we talked about this last time, this millimeterwave deployment that verizon is doing. if they wanted to do that nationwide including rural america, it would cost $1.5 trillion.

it is the scale. emily: t-mobile ceo john legere there. i want to bring in caroline hyde. investors are concerned about regulatory concerns. through, it go could germanic leave reshaped u.s. telecom industry. but get deeper into what we are looking at. caroline: through, it we are looking at for becoming three, and if you look at bloomberg intelligence, you can see how the slices of the pie could start to shift around. overall, we could start to see a merging of the two key pies eaten the moment by softbank controlled sprint and the likes of t-mobile. at theut the terminal moment because you will see this change in how the control is for the four key holders down to three keyholders.

this is what is concerning, overall, the department of justice, most likely. and they have to get it to the fcc. the obama administration at that point was overseeing this and we saw the doj could not swallow that pill of 4 slices of pie becoming three. they were worried about lack of innovation, price competition, and the effect on the consumer. as well you heard john legere talk about they can add jobs, music to donald trump's ears. they can add innovation by focusing on 5g, another key priority for the administration. and if the department of justice is already looking at verizon and at&t, they will be really worried about a narrowing of the pool here. emily: this has been years in the making. why now? [inaudible] caroline: in terms of why this

a pleasant pill for softbank and deutsche telekom, the two --eign owners, to swallow they have managed to iron out issues over control. ande times, the owner controller of sprint, softbank, has tried to do this with t-mobile usa. and he hasn't been willing to let go of control of to satisfy them. this time, it looks like he has. it will maintain 27% stake of the overall combined company. maybe deutsche telekom will hold 42% of the business. we have them in the seats of power. the chairman is the chairman and ceo of deutsche telekom in germany at the moment. and you will have john legere remaining. the coo remaining as a

combined coo. they remain in control and that is what seems to have been done here. what has been happening in europe as well, quickly, give us what you're seeing over there an in parallel. caroline: this is the frustration of european ceo's. has, many a time, the key european conference here, talks to me about the need for more consolidation in europe. why because average revenue, it is much less than any u.s. and japan because the markets are inl smaller -- far smaller europe. it is a broken up and fragmented market in europe where you have smaller players in smaller countries that don't have the economies of scale. they want more consolidation in the u.s. and in asia. emily: caroline hyde for us in london. continuedon that, we

to watch what the founder is claiming to lead. he disagreed with parent company facebook over the apple strategy, and we have the personal data. and trying to launch a unique facebook campaign. now we continue live coverage from the melvin institute mobile conference. we will speak with microsoft chair john compton about joining a light speed adventure. that is next. later this hour, u.s. treasury secretary steven mnuchin will join the show to talk about trade, the dollar, and economic groups -- economic growth in the united states. this is bloomberg. ♪

emily: we are live from the milken institute global conference in beverly hills, california. a microsoft chair john compton is joining -- [inaudible] [indiscernible] taking over as chair when bill gates stepped down in 2014. [indiscernible] the fund in 2016 has $1.22 billion. joining us now is john compton. and well willd your investment focus the? mr. khan jim: lightspeed because they were investors -- mr.

compton: lacey because they were investors in my last product. provide --round and , storage, those things that i have invested in personally or when i was running and we acquired businesses in that space. this is an opportunity for me to keep learning and hopefully help the lightspeed people. you concerned for regulation and how it will impact companies large and small. you concerned for regulation and how it will impact companies large and small. you concerned forreason regulation and how it will impact companies large and small. mr. thompson: the reason incident has raised the issue of regulatory oversight. there may be some that will evolve. i would not let that distract me if i was the ceo of a tech company. you have the plan that in place. there is an issue that looms on the horizon for us. how are we going to manage privacy in a different way in a world where everyone is

connected and the amount of in thatcontent connected world is really significant? something is likely to happen, i just don't know what or when. emily: what would you like to see companies do about privacy? mr. thompson: tech companies should respect information about me or you. emily: what does that mean? mr. thompson: they don't sell it. they don't share it. they do it in a way that is relevant to the needs of their business. any of them make money off of ads and they have to kind of use that as a leverage point. at microsoft, we don't believe in that. companies don't think about what their policy should be around this issue. there is something fundamentally broken about that. i will letn: zuckerberg explain that to you. emily: let's talk about the cloud. you said you,

wanted microsoft to move faster. where would you see progress and where have you seen them and like them to continue to move? mr. thompson: part of the role of chairman of the board is to be impatient. it was about that statement of impatience, if you will. the companies made phenomenal progress. it is very well. they have a very strong presence and they are doing a lot more in this space. the first mover. that we are making a kind of progress because the growth rate is certainly stronger than amazon at this point. how full should microsoft to be in acquisition? that is a tough question. i think the company has an indoor miss amount of capital. as have the capacity to go out and a tire a lot of things.

cash -- it is not about the ability of cash to do acquisitions, it is for how we are trying to accomplish it. if we are looking at the nokia being in theabout mobile business. it was an important thing to do. if you looked at the linkedin deal, sasha felt very strongly about being in the social media business and linked it been a wildly successful transaction. if we do another linkedin, i'm all in. emily: any areas that you are interested in? it is working and we will see a time to pass. where would you like to see that? >> anything that strengthens our relationship between our cloud and a broad network of users. things, commercial industries that generally have not moved to the cloud. those are the places that represent big opportunities. emily: what should microsoft be

doing in the emerging world of ai? microsoft has a huge investment in ai and machine learning. we allowed herein shun to continue to run ai as a research operation. we also integrated many of the functional components of ai into the operating teams driving the revenue day in and day out. becomes a learning part of, if you will, every single platform the industry has. do you see the negative side of ai or will that be more positive for companies to be responsible in the same way we need to be responsible about data yea? thinkompson: i don't anyone anticipated that pcs would turn into what they have

turned into. we can't anticipate that just like we can't anticipate what ai might do. ai is going to have a more powerful impact than we might have ever envisioned to were three years ago. we will known a few years just how impactful that will be. john thompson, joining us, think you much for coming by. coming up, we continue coverage .rom the global conference will sit down with tim armstrong. this is bloomberg. ♪

emily: we are live from the milken institute global conference in beverly hills, california. the media company under verizon just launched a year ago. where do things stand now? we are joined by tim armstrong, oath.f

we want to know what you think about the sprint and t-mobile merger and what it means for verizon. mr. armstrong: it is too early to comment on. thing, it points to how important the landscape is overall and look at what verizon has them with their investment. it is an exciting time in the industry and i'm sure they will have more to say about it. emily: given the regulators and the concerns, should they stop it? mr. armstrong: i think it is business as usual at verizon right now. both at verizon and oath.

it is all hands on deck on the operating side. we have one of the highest quality groups of consumers, one billion people at oath. we have a lot to do. emily: let's talk about oath. there was skepticism, the combined shells of yahoo! and aol. how have things actually progress? emily: we're coming up -- mr. armstrong: we're coming up on the one-year anniversary. revenue,of dollars in and the biggest thing is we are having the power brand. it is coming out with a new ad system this year. we are so excited.

we are still integrating. the second half of the year, we will do exciting things. the head ofd alibaba come in it in and be president and coo. we really start to operate the company. are we going to see more of that? are majoring: we in the majors. we are on the assets we had. and we look at finance, entertainment, those are giant audiences. sports. it between the verticals, we have tremendous size audiences that are on mobile, the internet, and new york city is our new front.

we have a huge fleet of properties. and we have any special thing. the display that was down, what are the right spots. there was traffic growth we had in q1. sports and finance. you will see mobile and the display advertising. now, i am really happy with the progress and really happy with the talents. i will be really excited when we come out with a product that is our scale. and there are places that aol did a better job and where yahoo! did a better job than aol.

it will be a formidable ad system. google and facebook. emily: tim armstrong, ceo of oath. you andcatch up with hopefully not another year. coming up, we continue our coverage of the milken global conference in beverly hills and sit down with u.s. treasury secretary steven mnuchin coming up. this is bloomberg. ♪ we use our phones and computers

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sign up for xfinity mobile and add a new line of unlimited. xfinity mobile. it's a new kind of network designed to save you money. click, call or visit an xfinity store today. are watching bloomberg technology. here is a check of first word news. secretary of state mike pompeo warned about the threat of iran saying tehran is responsible for

instability across the middle east. chance to discuss how to best counter activity in the region. and with all of our allies, we have had discussions with respect to the jcpoa. >> prime minister and yahoo! says that -- prime minister netanyahu says that he has documents. written's new home secretary about today to find a solution to the immigration scandal that led in part to the resignation of his predecessor. >> i want to start by making a those who have been in this country for decades. and have struggled to navigate to the immigration system. this never should have been the case. we will do whatever it takes to put it right. >> south korea has decided to permanently remove loudspeakers

blasting propaganda from the north and expects pyongyang to do the same. the north koreans pledged to achieve a nuclear free peninsula . howard by more than 2700 journalists and analysts in more than 120 countries, i am kailey leinz. it is just after 5:30 p.m. in new york. i am joined by paul allen with a look at the markets. paul: u.s. stocks ending on a down note. about .8%. pharmacy stocks in the main weighing there. the nasdaq weaker by .7 5%. apple reporting later on today and will have a iphone x sales. a lot of markets closed in asia today. about one third of 1%. change, the u.s.

dollar continues to strengthen, hitting for its best month since november of 2016. and the biggest monthly gain in seven years now on track for its highest close in 2014. oil strengthening above $68. in australia, watching out for the reserve bank's decision and expecting to stay on hold. paul allen in sydney, more from bloomberg technology, next. ♪ i'm emily chang and this technology."

we are live at the milken institute global conference in beverly hills, california, where we have been speaking with some of the top newsmakers. the chinese are commerce giant would bring one million u.s. jobs. we found out what a trade war would do to that. >> it would have tit-for-tat trade tactics that really will cause a retaliation and in china, they just put on soybeans. it will hurt american farmers. and i think we are in the context where we are seeing a huge market in china and it is kind of ironic that the u.s. administration on the trade war right now, there are a lot of consumers in china, 300 of them. last yearping said over the next five years, china will import a trillion

dollars worth of goods. because of the trade war, they've put the gates down because of retaliation. this is going to hurt everybody. it's is going to close off a lot of opportunities for producers in the united states. emily: alibaba's jack ma said that they were going to create jobs in the united states but warned it may not happen if a trade war moves ahead. are you pulling back on that? will those jobs not be created? >> jack has said that we are not going to create one million jobs but we could create 10 million jobs if the trade flows are open. andhere are trade war's opportunities for small businesses being shot off because there is a trade war, the consequences could be quite severe. emily: jobs will not be created is what you're saying. youot going to comment, but

will certainly be greeting fewer jobs that if there was no trade war. now to apple getting ready to deliver the second quarter results and getting a bit of a boost in wall street. shares rose 2% in trading monday. working the largest intraday gain in three weeks. as to what to expect, bloomberg mark takes a look. >> it was supposed to be the iphone to and all iphones. the pinnacle of a decades long -- and according to some analysts, it has not been such a hit. the world's most valuable company is feeling the heat from investors. and investors and analysts are

concerned that the $999 iphone x isn't going to work. some are pointing their fingers at a few factors. have allnent makers reported lower-than-expected revenues. further, the iphone manufacturing partners are all reporting lower-than-expected growth. to of this lead one analyst be cleared of the iphone x is dead. but not so fast. the reality is actually far different. it is not dead but likely too expensive for some consumers. apple is looking at sales of 53 million phones according to some estimates. that is a 5% jump from a year ago. even for a company the size and maturity of apple, any revenue rose is a plus. still, apple is turn to address the fact that the age of the phone might be slowing down. remember when the iphone 8

launched last year, it did not look different from the iphone's ex? the sticker with shock of iphone x, apple left room in the market for users to not a rate their devices this past year. apple clearly recognizes this and is working to remedy that. this fall, the 10 is getting a giant upgrade. literally. the giant is planning a low-cost model that looks and acts a lot like the iphone x. and all of that might just be enough keep apple on top. it, iphone. calling bloomberg technology's mark gurman there. we will continue coverage from the milken global conference in beverly hills and sit down with u.s. treasury secretary even mnuchin next. this is bloomberg. ♪

>> this is bloomberg, i'm stephanie flanders. we're live from the milton global conference where i'm joined by the u.s. tech or terry -- u.s. treasury secretary steven mnuchin. you have been talking to a lot of people here about heading off to china. you'll be looking for what from the chinese? is this their last chance to prevent tariffs? looking forward to very frank discussions on the trade issues and continue the discussions to see if we can reach a mutual solution to this. the good news is, president , sincend president xi mar-a-lago, have been talking about the trade imbalance. president xi acknowledged that the objective is to have a more balanced trading relationship. i think they have a close relationship and i'm going over

there with our economic team to see what we can get. emily: if i was listening to what you just described, it will be you, u.s. trade representative's, and heater navarre -- peter navarro. mr. mnuchin: and larry kudlow and secretary ross. emily: should i be listening to you -- stephanie: should i be listening to you? mr. mnuchin: you should be listening to all of us. i would say that we have a tremendous economic team. we meet almost daily on these issues. we meet with the president regularly. it is good to have a diverse opinion and when we go over there, we will have a good talk. mr. mnuchin: what is success when you are on your way back? what is success when you are on your way back? mr. mnuchin: you will know it when you see it. an agreement have

expiring for the european union and can you tell us where you are on that? i expect you'll see a decision later today from the president. we had a good meeting of the economic team with him, talking about these issues. i'm not going to get ahead of the president and his announcement. >> the people is certainly saying that they are not getting that exemption extended as they have a very clear list. are you modeling that of the treasury? you must be thinking about the effect on the u.s. i would say we are having very good discussions with our counterparts. we had all the g20 finance leaders. and his economic team, went to paris for a financing

conference. we have been having very direct conversations on these issues. sooner or later, you don't have the war anymore and we could have tariffs. how do you think about the impact of the u.s. economy if there is retaliation? have seen u.s. to messed up prices going up relative to european margins. first, let me just say i'm not going to comment on the president's decision. it will come out soon. as it relates to any time you go to negotiate, and i use the example. six months ago, people said we were being too aggressive on north korea. had the strongest sanctions on north korea ever put in place. those sanctions are what got him to the negotiating table. it is a historic event. it and south korea talking about peace.

talking about them being willing to give up their nuclear weapons versus six months ago, shooting missiles over. you have to be willing if you're going to negotiate and have changes, you have to be willing to go through with difficult decisions. and having maximum pressure. you mentioned sanctions and in another area where we have seen it in regard to russian individuals. , theynction against him live in markets. producer.a big are you any closer to an agreement on that? what constitutes him relinquishing control of that company. first of all, we have had a very broad sections program against russia for the last year under our ukraine sanctions program. a law,s passed

overwhelming. we had to write the report on the oligarchs and the political figures. a very longugh process. picked up not because we were targeting him but because we were targeting the ownership. impact thatd it the this would have on a lot of hard workers there. tohave extended the license try to deal with these issues. the company has petitioned us for delisting. i'm not going to comment on the specifics of what that would entail. and one of the issues will be the majority interest. people are concerned about what this would mean for the survival of the company, and whether or not it would be sanctioned. some form of shareholder, but i minority

shareholder. is that ok as long as you are concerned? >> it wouldn't be appropriate for me to go through the exact details of what will be ok and what won't be ok. there are lots of facts and circumstances we are discussing. the first aspect would be that he is below 50%. we are having conversations with the company. we had those discussions encouraging and that's why we extended the license to allow the company to have time and not to have time to deal with these issues. our objective was not to put us rasol out of business. treasurer -- you are treasury secretary and you can comment on the market. we have seen the first quarter of this year, record borrowing of treasury. are you concerned that we are now looking at a lot of pressure putting the treasury market in a very different place this year

than last year? themnuchin: no, i think good news is the u.s. treasury market is the most liquid and robust market in the world. i won't comment on interest rates because i respect the independence of the press, but what i will say is that the market, the forward curve, expects interest rates to go up. it goes up and how fast, we will see if it is more or less in the market predict. part of the reason why was he interest rates going up is that we create economic growth. that is a good thing. onhave been focused targeting 3% sustained gdp. and part of the reason why just rates of backed up is because of that economic cover. stephanie: on bloomberg this morning, it was said that he had never seemed to demand and supply conditions in the treasury market with so much supply coming on. others running, down the balance sheet. mr. mnuchin: let's just say

it is a robust market and the most liquid market in the world. is a lot of supply. stephanie: when we talk about the bumps in the road ahead, there has always been a lot of concern about how this more normal monetary policy was going to play out in the long term. do you think it is 3, 4, what would worry you in terms of putting pressure? haveanie: let's just say i -- mr. mnuchin: let's just say i have tremendous confidence in chairman powell. it depends on where inflation is, it depends on what growth is, what unemployment is. there are lots of issues that are interrelated. and the facts coming

into it is that you have may be reduced demand and an increase in supply. we're not just commenting on fed policy, we're talking about the amount of supply. by definition, supply and demand will equate. stephanie: they could be at a very high rate. mr. mnuchin: i am not concerned about that. we have a lot of buyers for u.s. treasuries. what you mentioned about inflation, we have had signs without commenting on the policy that they are willing to be the target for a certain amount of time and let the economy run. is that something you are relaxed about? stephanie: i think a little bit mr. mnuchin: -- mr. mnuchin: i think a little bit of inflation is a good thing. one of the aspects of the tax plan is we want wages to increase. eight years have not been great for the average

worker and have not seen wages increase. a little bit of wage inflation is a good thing. energy prices have the potential to, as we become energy independent, i am not concerned about energy inflation, and there are lots of good signs on the horizon. they authorized 65% i think since last summer. and we have is necessarily seen a big amount of u.s. supply. a lot of people thought it would win prices went up, that u.s. surprise would be upsetting. are you worried about that affecting working households in the u.s.? mr. mnuchin: again, i would say that we have a lot of liquid national gas. there is a lot of alternative energy. clean coal. there is a lot of opportunities in the energy markets.

i'm a going to speculate where oil prices are. if oil prices were in the 40's, they would say they are going to 20. i'm not good at predicting where we are. inflation seen energy as a result of oil prices going up. stephanie: one of the factors that worries me is a little bit is they did have quite a big impact on markets in the short term. we saw it with steal prices. and as we go into this iran potential increase, the sanctions against iran in may. are you thinking about that impact on oil prices because it could affect that? mr. mnuchin: i just want to separate sanctions from tariffs. sanctions are very important economic tools that are used for national security and foreign policy. as you know, they are very impactful. they worked and iran last time

and that is why iran came to the negotiating table. president trump is determined that iran won't have nuclear weapons now. they won't have them in five years or 10 years. i look forward to the president's decision on the jcp oa.y wouldnie: how concerned you be on the short-term impact? do you want to push ahead with that foreign policy? you still have to think about the short-term dynamics. >> it is one of the things that we look at. stephanie: one of the things we have seen is the trade deficit still going up. soaring over the last year. against the backdrop of all this, do you think that this trade negotiation that you have can possibly affect the macroeconomic causes that are pushing up the u.s. trade

deficit, being important? mr. mnuchin: the president's economic plan has consisted of tax reform, regulatory relief, and trade. part of the reason the deficit has gone up is the economy is growing. as a result of the impact of tax cuts. that is a short-term issue which , again, is the unintended consequence of a growing economy. we are focused on trade and turning that around. >> you may come back with all of this saying that we've got all these deals. meantime, that dynamic you just talked about, it sends the trade deficit higher. if we can get the fundamental changes we are talking about, and that is what the president is looking for, it will deal with the trade deficit. mr. mnuchin: we talked about the trade market and inflation and there is always something that

ends up causing the next recession. we know there will be another recession. mr. mnuchin: we're narrow ever -- never very good at predicting what it is. what do you watch iago is there something that could be the biggest risk? mr. mnuchin: i think the issue is, in this cycle, the risks are creditely low because quality is very good. it liquidity is very good. bank lending is very strong. the next issue is going to be something that we don't anticipate. stephanie: thank you very much. we will have more coverage ahead here from the milton conference. this is bloomberg. ♪

>> wall street launches a busy earnings week on a down note. stocks lowered by tech and industrials. >> s&p hit by boeing in microsoft while the nasdaq solve broad declines. apple, though, was a bright spot. quotes -- >> elsewhere, missing in the first half as profit stalling and seizing typical trading conditions ahead. >> the administration will name those countries that will be spared from tariffs and those that will not be.