document about russia election metal in -- meddling to congressional republicans be at in a tweet, senator schumer sent out a zone morning, writing that the powers of the presidency do not grant the right to shut down the investigation and that doing so could create a constitutional crisis. two black man arrested for sitting at a philadelphia starbucks without ordering anything have settled with a symbolic one dollar each. promise from officials to set up a $200,000 program for young entrepreneurs. mayorn's lawyer and outlined the agreement to the associate press. 12 led tos on april protests in philadelphia and around the country over racial profiling. the men say they were waiting for a business meeting about the potential real estate deal. three whistleblowers in the chilly sex abuse scandal urge pope francis to transform his apology for having discredited them into concrete action to end

what they call the epidemic of sexy the us and cover up in the catholic church. spoke toilton and jose reporters today after spending five days with the pope at his vatican hotel. spoke to reporters today after spending five>> i do not know what word o use because it is not often that the pope really says sorry to you and apologizes to you for something. he said, i was part of the problem, i caused this and i apologize to you. therance has said some of entire conference to rome later this month. a spokesman says former president george h.w. bush will remain hospitalized at least another day so that doctors are very pre--- please with this project -- progress. mr. bush was admitted to the hospital 10 -- 10 days ago, day after his wife's funeral. he is being treated for an infection that spread to his lead. -- his blood.

global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. julia: live, i am julia chatterley. julie: i am julie hyman. >> the close of trading in the u.s., stocks taking a leg lower in the final minutes of trading. it leaves rates unchanged and tesla's earnings after the bell. >> the question is what did you miss? closer to bullseye, the fed leaving rates unchanged. isnals that inflation approaching its target level. cash burn and production of delays. test the reporting after the

bell and tesla has plenty of question for the carmaker. to onereet bids farewell of its faithful spirit moving its corporate headquarters to nashville. the latest index this out of new york city. >> pretty protectable leaving rates unchanged. the biggest came not in numbers but in language here the committee says inflation has move closer to 2% mark and added a reference to the symmetric nature of the target. a former federal reserve vice chair and economic studies at brookings, great to have you with us and thank you for joining the show. an audible sigh of relief from the federal reserve managing to take out the sentence that they are monitoring inflation developments closely. what do you think of that and also the use of the term symmetric? >> for the last couple of years,

they have had the same sentence or a very slight variation on a sentence that says, we are confident that inflation will of 2%. to the target and it has not. it has stayed well below. it is now almost at the target, which is good. they are saying well, we have almost got it where we want it and we can now worry about, it is either going to high or too low. i do not think there is any significant to the sentence that it is nice to see that finally, the prediction that inflation will move up a tiny bit has come true. >> it seems to be that the read on that language is that the federal reserve is going to raise rates and not pay as much attention to whether we are a little above or below the figure

. how many rate increases do you think there will be at this year? >> two or three and they will not tell you until they do it because they do not know any more about this than we do. the economy seems to be on the track they thought it would be on, namely tight labor markets and pretty good growth and inflation coming up in a little bit. but they will watch and they will certainly keep on their schedule of raising unless something terrible happens. past, as far as mike turner policy is concerned, you have that is one thing to your farm work certain about what we are seeing in terms of fiscal policy and trade concerns as well from the u.s. administration. obviously, we didn't get anything from the federal reserve as far as fiscal policy is concerned but we have seen the treasury ramping up their

forecast for the issuance they need to provide. at what point will the market look at this and say we need to be a little more cautious irrespective of what the federal reserve is saying in terms of their ramping up of rates? >> i think the federal reserve will stay on track. should worry about is the fiscal policy is to stimulative at the moment. a full employment economy have a lot of problems. one of those problems is not stimulus from the federal government and we just added to that by increasing spending and cutting taxes. i think people should be worried about the long run trajectory of the debt and who will buy all of these bonds we are putting out there, but in the short run, it is not a concern. >> what about trade policy? something you're

concerned about and you are not alone. many economists peers, more than 1000, signed a letter dated tomorrow do formally to come out tomorrow, calling on the president in congress to abandon what they call protectionist trade policy. do you think it will make a difference and that the trade policypolicy will indeed go into effect as they have been planned? >> the main problem is everything is so uncertain. the president came out with steer -- steel tariffs and there would be tensions with some countries but not other countries. then he has been extending the exemption for european countries for another 30 days. it is not the way to make trade policy. i think he should have left well enough alone. the damage is no one knows what will happen. uncertainty is not a good thing for having steady and growing

investment in the country. >> what do you think the most important question is now that the federal reserve is asking itself, as you pointed out with inflation and why they can -- we can explain we have not seen the pickup we are expecting, what is the big question? is it policy, or something else? >> i think it is, does the oak -- does the economy overheat and they are not just showing up in consumer inflation. i think that is what could to be fairly quiet, although we don't know, but, you know, you could get a bubble in various asset markets, things that would be and signals of overheating, without having much inflation, consumers they

should. classic question it's are asking you? >> not yet. thank you for your time. the former federal reserve vice chair. coming up, he was immortalized in the big short for helping design a winning trade. where does greg litman see the next pain point for the markets? this is bloomberg. ♪

>> let's take a quick look at the major averages. in the wake of the federal reserve, not changing rates but it did add some language that seems to indicate inflation's getting close to the target. they have come down and are decidedly at the lows of the

session. the s&p now off i half of 1%. when it comes to rates, we have seen bouncing around in the 10-year note. it is now selling off a little bit. not a big move. >> a bit of a roller coaster. what did you miss? you should listen to the guy who found the last week short. lieber max capital spoke with eric schatzker about opportunities and concerns in the market. >> a little stronger term. people are looking everywhere to find these things. a lot of public, that hasn't worked yet. there is a lot of reasons the trade doesn't have the time sensitiveness that the residential one had. works or it doesn't, it will not have a leverage.

one of the reasons the markets have been persistently so strong is there has been a variety not just incorporate, but in other but for lack of a better word, that has been an underlying cover bid in a lot of markets for people who were prematurely calling pick shorts. >> we would love to find it. >> would never buddy? >> i guess so. are looking for that. >> not lower returns but returned that seem tough.

with interest rates as low as they are, it would be difficult for any manager to generate strong returns. 15 or 16, some of that related to flows out of the sector. 2010,tructure out of -- low double-digit returns for three or four years. 15 returns moderated quite a bit . a lot of fast money left the sector. fund as part of the business, -- >> rates are rising? >> i think it is a good question. , the mostg higher

bond funds. we are getting a multiplier effect. also think it is with saying at this point in the cycle, the structured products are really great. the rally we have seen mostly since the crisis. we have generated reasonably good returns. if the first quarter is volatility, i think we will see a lot more trouble in the corporate market than the structured productsif the firsts market. i think structured products the

lash war. there were aonment lot of structured products at the time. products were generally up modestly in 2001 and 2002 even while equities are down. power portfolio is more diversified than it was before. down 20%. tryingh level, what i'm to do is construct a portfolio that generates enough return and people are happy and satisfied investors. >> that was greg litman, cio and

erik schatzker at the conference. amazon pay may not be as well-known as paypal but if amazon has its way, it will be. it is offering discounts to retailers to expand the payment system. paypal and visa shares are moving lower on the news. i want to bring in jenny for the stock of the hour. should i say stocks of the hour? amazon pay is kind of like paypal. and sayclick something amazon pay. >> i think a lot of retailers might feel a little uncomfortable having amazon know the revenues moving to their system and the competitor. you can benefit a lot from the trust people place and we already have these stored on file. there is competition.

>> what kind are we talking about, potentially, giving back? networks like lisa and mastercard there is a whole world of payment processors. is a big business. gets a discount already with these guys. what they're looking to do is transport the discount and amazon.o sell on >> why do they want to be on the business? i guess they want to be everything. discounts tove grow it. >> i think it is one more way amazon -- customers.

the kinds of things my customers are shopping for. think it is a way to keep people further into the amazon system. they are constantly looking at ways to bring smaller market -- merchants selling and partnering with the platform. leap and a jump but it is outside the wheelhouse. >> what about big banks like jpmorgan? the big credit card issue as well in terms of sinking hooks , it perspective businesses looks like an interesting angle as well. >> the $90 billion figure i gave earlier, the banks are the significant -- every time you swipe your credit card, merchants are paying banks for electronic payment.

as that changes in terms of signing up for amazon pay, there is a question of are those going to go down for jpmorgan and city, but is there a world where we do not need a credit card and hook the account directly into amazon and you start running off a traditional rails? these are all things "i ability. starting to is catch on but it has not been a no-brainer necessarily or the threat that it would be when apple introduced that. >> that is true. tech companies are looking at finances, another way to expand the ecosystem. in china.aking a note enormous success. seems to be a different market in the u.s. were made we do not want social media and tech and finances in one place. >> or do we? we will see. thank you so much. we appreciate it. down 4% on the new spear

plenty of questions when it reports earnings after the bell. , and just aelays couple of questions they have. down. get another leg jump to .8%. this is bloomberg. ♪

>> tesla has consistently missed its own production targets for the critical model three. company reports first-quarter earnings after the bell. we have got a lot to look at when it comes to this. ceo lee, a lot to choose from.

>> look, at the end of the day, this really doesn't matter to the future of the company. what will be interesting is the commentary. onwant to hear a handle liquidity. elon will figure out how to get liquidity for the company. the question is, does it matter with the competition stacked up against him. he may have just missed the window. i would be willing to bet he figured out how to fund the company. if people are short based on that, i do not know if that is such a great idea here. >> that will take us through the end. depth resource. nature in on all the

a sense, the market will move well ahead of the actual event of him being a liquid. it is not the nature of exactly is adata -- what date liquid, when does it really feel he will not get liquidity for this thing and i do not think that will happen. >> we have the short interest. it is now nearing a third of float, a third of shares available for share. be upside risk if you get a squeeze. it is challenging. >> you are basically extract relating off of, what was the surprise this quarter and is there any indication of future growth and it is important to look at that. in tesla, do you believe what

aboutays on the call 2019, 2020, about the production levels, about the business itself. the game of how much is baked in already? >> are people at gnostic on elon musk? >> no. >> no matter what he says. >> let's not get that wrong. it is, do you trust him to innovate, which we have seen he can do, get ahead of his competitors, which god knows there are many at the door now, and can he, which it looks like he has in having a hard time with lately, like he will cut -- talking big game and do you believe it? to very quickly, just talk to us, how these expectations have dropped as they are headed into these q1 numbers? >> the shipments were bad. consensus has come down.

expectations are bad and that led a couple of months ago to the big drop in stock. >> a 50% drop here. you are staying with us. plenty more to come. the market is next. -- the market closes next. this is bloomberg. ♪

♪

julia: stocks softened up the federal reserve to be writes and i am julia chatterley. hyman and i am julie for scarlet fu and joe weisenthal. we begin with market minutes and looking at stocks that bounced around in the wake of the fed position. first going higher briefly and closing not at the lows but near the lows of the session. , earningse session was in focus. we have gotten consumer staples reporting about margin pressure. about inflation getting close to 2% target, it seems to many of these companies are taking the brunt of that and not present it on in some cases.

consumer staples the worst performers, telecom as well and health care and financials also rounding out the worst performing groups on the day. as for individual stocks, it is notable that the decline in overall stocks came even as large stocks are on the rise, with aeating estimates, $100 billion buyback boosting shares and tim cook reassuring investors. snap, but make the redesign of snapchat in terms of -f why they missed onn other users. and the fast food industry drawing less expensive fast dollarnd offering one law chose at taco bell, but that wasn't enough and had an effect on margins.

and people are drinking less beer in the united states. it is a sad situation as far as i am concerned. wayne,times in the u.s. and those shares down 15%. i always thought beer tasted like the smell of money. [laughter] you can see a smidge lower for u.s. two years and a's major year, with 2.97 on the 10 a bit of flattening and unwinding going on as a result of indexes. expecting something more hawkish and not what they expected? here,"asping for reasons we saw in the front and. look at what is going on as far as the two-year, and the 10 year that i described. a bit higher and steeper on the

session, two basis points. let's talk about currencies. the move we sought to the dollar swiss related to what we are seeing is one for the last several sessions and the dollar index, paring higher. see to the greenbacks 2017, evenber of with the softness, gains relative to the g10 overall. and a look at the euro-dollar and em currencies. we saw the dollar strength versus all of those, and that remains the case, 410 7% lower for the euro. mario draghi acknowledging a slower pace and strengthening the dollar versus em currencies. julie: and one of the assets

that solving first move in response to the fed is gold, but that is gone the way. gold moved higher in the wake of the fed decision and signaling that will stay steady under active interest-rate increases. and gains have melted away crude oil prices rising as we await the u.s. decision if it will stay in the iran deal. and citibank out with a warning on oil saying the surge on supply risk may be followed by a slump, as volumes actually affected could trail expectations. 1%.e oil higher at 6/10 of soybeans in focus because that ceo of the world's largest oil see processor confirmed that china has indeed stop wind u.s. supplies because of the brewing trade war between china and united states. it is something the market suspected. and those are today's market minutes.

i want to mention, as we await all of these earnings numbers, including tesla, we got earnings from corvo, the semiconductor maker that supplies apple among others. the shares are not moving much after hours even after earnings cannot ahead of estimates. we see a lot of negative news in semi conductors, particularly government makers that raised concerns about apple as well as how the semiconductor industry is doing. not gaining ground. julia: for now with more on today's market action is mike reagan. and still with us is leigh drogen. grappling to find macro reasons to describe some of the price action today.

then pending to lean dovish because we are expecting something hawkish? keep going because i am grasping. statement wasthe more dovish than people were embracing. if you look at the implied theability of rate hikes, needle didn't move too much and we are pricing in a hike in june and another in september. it is basically a coin flip in december and is still true today. tothe bond market's summit guilt come off quite a bit. explain.t is hard to the earnings and consumer staples are in the league, but it is a hodgepodge of market leaders on the way down. staples, health care, industrials, it is hard to drop

the macro thing from that. i think earnings season is coming in better-than-expected but we price that all in and the huge rally last year and in january. to borrow the phrase from caterpillar, it is as good as it gets feeling, the earnings from a macro level, it is great that tax cuts are great for earnings. but if you look further past this year we are back to a slower pace growth. leigh: i get this queasy feeling of bad news and the market is watching out. their words felt like they didn't know what is going on either. maybe this, maybe that. julie: they can't tell us with certainty because they don't know for certain. leigh: and this is wedging out

and these resolved forcefully in one way or the other. it feels queasy to meet that will open up about 5%. and earnings were supposed to come to the rescue and they have not. -- it dimensions earnings want to mention sprint earnings for example. it sees its full-year adjusted -- 11.6 billion that analysts anticipated. julia: the critical thing about these guys is the spread-t-mobile deal and we have t-mobile results and the same thing with these guys, there is your numbers, not tell us what you are to do as far as the deal is concerned with what you are going to do if the deal doesn't happen. critically important for softbank as well. julie: we will see what they say

on the call. julia: let's talk about the queasy feeling, and might i know you are looking at the smart index versus the dow jones. to talk onitted this, i spotted it as you went through. explain what you are looking at and what the chart is telling us at the moment. mike: it goes back to the 90's and the blue line is the year-over-year change of the smart index. they know that is the year-over-year change in the dow. what my colleague was pointing out here is that big crashes like this in the smart index are uncommon outside of nasty markets like around 2000 and 2008 are market. ist the smart index measures the first half hour of trading versus the last half hour of trading. the theory is smart money traits at the end -- trades at the end.

it shows you how weak the closes have been. head scratch or white people are bowing out at the end why peopleing day -- are bowing out. julie: shares are down sharply, dampen rising since the company became public, but if you look at the various metrics here, it looks like the companies first quarter revenue is in euros come up 1.14 billion is the number we are getting, and a loss per share is 1.01, that is -- that isold number a euro number. they have a 30% and 45% gain respectively year-over-year and the total revenue number i give you was a 26% gain

year-over-year, or 37% with the effects of currency. and the gross margin is 24.9%. this is a high flyer that we have watched for spotify. the stock closed at a record since the ipo opened. and you see the decline in the after hours in the wake of these numbers coming out. julia: they are bouncing around, and can see the numbers look tiny, down 5.7%. a knee-jerk reaction on that one. and we have further from sprint, naming marcelo clearly the ceo of softbank. started a search for a cfo as well. interesting, we will continue to

bring you further headlines on that. z as cfo.chelle koon julie: tesla is coming. julia: just the keep us busy. julie: just of lost in the first quarter is 335, now are than the loss and had been estimating for tesla. we are awaiting headlights to come through, but that is the first i see as the release is just coming out here. loss is slightly more narrow than estimated. this is why we have been waiting for. i am trying to click through and see the numbers. 335, and theare of call is going to be likely here. out, that isted

where all the questions are going to be asked, if not answered. as julie pointed out, we want to hear about production numbers and get a sense of what kind of revenues these guys are generating, and the financials underlying that. saw theven today we numbers fall another four cents, and he reported in between the loss and estimated numbers. at the end of the day out of the matters, this call will be raucous. julie: i opened up the letter to shareholders, and elon musk's sake if we exited the plants we will achieve wasn't net income, excluding non-cash compensation. in the third quarter and fourth quarter, expect to achieve full get profitability in each of these quarters. this however, primarily based on our ability to reach the collection of 5000 units per

, to close to break even in the second quarter, and the highly positive in the third and fourth quarters. mike: what could go wrong? julie: some contingency there. julia: and revenue numbers, better than expected. bear in mind concerns of tesla have come down. the automotive gross margin is positive and estimate was 14.3 and gives you a sense of the selling price we are seeing, managing to raise gross margin levels of the stage as well. they see a positive in the third quarter and fourth quarter, and below $3ctions solely slightly below $3 billion. is the interesting part, q3 kenseth says is

negative 125, and q4 is -78, so this is a test of elon musk reality distortion field with jobs. it is all going to come down if they trust what he says, and recently they haven't trusted him. julia: the stock is bouncing around right now. on .8 and 1.9, we get a sense of trading around the 2% level. julie: with us tesla or spotify tell us of these momentum stocks that ruled last year? these kinds of companies, what is the recent action telling you about a bigger state of the market? mike: in a nutshell, momentum is not what it used to be. sense, what julia mentioned earlier, the stronger dollar coupled with higher

commodity prices and higher metal prices, especially year-over-year, they are off of highs. higher lumber prices, it speaks to the margin pressure on the consumer staples. explains why earnings season maybe is not giving the boost everyone expected it to. momentum is a victim of that. julia: let's run back over to what we are seeing with tesla and the cash burn. bloomberg estimated on the minute by minute basis what company burns through, with $6,500. find the clock you can bloomberg website, and is a 15-year-old company that can genuinely risk running out of -- run out of018 cash in 2018.

they may exist on credit lines. leigh: it is a thesis that i do not want to be playing. julie: out what to mention metlife and the insurance giants out with numbers, aig is a miss at metlife is a beat you look at the bottom line. earnings oneted point 17 is what analysts were anticipating, and return on equity and percent versus 5.3% a year earlier and that is metlife. those numbers are looking better than estimated, underwriting improving tax reform. substantial, 1.4 was -- versus 1.25, going down and that-year, investment income down by 9%. they are not making good bets in its investments.

the ceo saint we make progress in delivering consistent results, but it looks like were the market is concerned, progress is not good enough. another headline with tesla coming in similar in terms of levels to q1. the delivery should pick up to achieve the yearly delivery goals by it also hurt election issues as far as the mainstream hope for tesla as far as electric vehicles are concerned. what do we think as far as the production capability is concerned? we have turned time and time again we will get there, and they read and again is when to take some time and continue to do so. anonymous said i thought this is easier than it really was. the question is, is he going to aspect oferational this right?

technology is ahead of competitors, but at this point in production, he hasn't done this before in the scale. the question is, you want to bet on him getting that right versus the debate of side of what he does. personally, i don't think the liquidity issue is the downside call here. also would not bet on him upside to succeed on this. reporting a beat and gross margins relative to all wall street estimates, and the model s and model x are 5% -- they are 25%, and they expect the model three to break even and highly positive in q3 and q4. that is a bullish outlook. mike: no surprise. julia: making you repeat yourself. button up this conversation, i will ask you to

take a step back here, when we look at the earnings season, everyone was so excited, and it hasn't proven to be so exciting in terms of what has done for the markets. mike: if you take the earnings away from the market, they are great, the surprises have been good. bet the snp that was up 20% last year, and a look at that was on the optimism of what is coming down the pipeline. in the meantime, you have these higher commodity costs and a much higher price of money, you look at libor. cash is now a competitive asset class when it wasn't for most of spreadll market in stock everyone is talking about late cycle and more volatility, and more volatility have seen is scaring some people and getting a nice little safe yield in cash. and the amount of talking around we are seeing.

going back to what we talked about the smart money and movements we are seeing. when mike was talking coming you are nodding that you want to say something here. leigh: my first role as an analyst is that when of the first things i was taught is the open was for the joe's, and the closes for pros. iss range we are in distributed range, the volume on the downside is larger than the blame on the upside. when larget happens institutions are tempting to distribute stocks in the market because they believe that the -- 12 monthmonth is not as good as we wanted. when we see the money flowing at the close it tells you institutions are getting more trades off in the end of the day and the structure is changing. also, in this range we haven't seen momentum work. some of this things aren't

working, but it will be interesting to see what the models are doing in the intermediate and longer time frame, and some of the bigger macro funds and how they structure things. that is the smart take on the smart indexes. [laughter] and leighe reagan drogen, thank you so much. get the gtv function ready because we have charts you can't miss. this is bloomberg. ♪

julie: it is time for our weekly chart segments or would bring in the charts and bloomberg functions. abigail: this year is building

up as the year of the range, the s&p 500 is in this range, but second your trust talking about the range and what you think is the excerpt large-cap overall. >> the conditions are getting the s&p 500 the 200 day moving average and the lower panel, met new lows on the russell 3000. each time theint, s&p 500 falls, there has been fewer stocks making new lows. a high intensity in february, your stocks making new lows in march, and more recently done to that level, small caps holding up well. we think this is a sign of a relief rally on the upside. longer-term your view might change, and the of that could be consumer staples, amazingly down 50% this year. ari: it is the technical

conundrum, and here's what i am toping about, x lt at the with relative performance at the bottom, should we be bearish because consumer staples have broken down? of the a big sector market weighing on conditions, and they have been underperforming, is that a sign there is a preference for a more cyclical area? this is a countercyclical group, and at the very least sell consumer staple stocks. abigail: a similar situation to 2000, but before we let you go, i pay. becoming returns dispersed, we think the area want to go in his growth areas and we like this mobile payment etf ticker, ipay. it is in this triangular formation. relative to the market but not to the upside, the leadership area, investors do not to sell this group. we think ipay makes the upside.

abigail: you think you might see one last pop higher, but if things get difficult stay way from consumer staples and look at ipay? ari: these are mastercard, paypal as well. thank you so much. julia: let's look at tesla once again and the numbers. call is going to be important, and what they say about production targets. what we did see is adjusted loss narrower, and a revenue line that is better. lots of optimism for production targets, seeing improvements in production in q3 and q4, and continue to produce the 5000 vehicles on a monthly basis -- the basis -- weekly basis.

more ahead. ♪ retail.

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and it's "daditude". simple. easy. awesome. xfinity. the future of awesome. mark: president trump and vice president pence attended today's ceremonial swearing-in of secretary of state pompeo. the president said he has confidence that payable to an incredible job. made asecretary of state secret visit to north korea to meet with kim jong-un and said that right now we have an unprecedented opportunity to change the course of history on the korean peninsula. >> i underscore the worth opportunity, we are in the beginning stages of the work, in the outcome is unknown. but one thing is uncertain -- one thing is certain, our eyes

are wide open and it is time to solve this once and for all. in ideal is not an option, the marketable are counting on us to get this right. pompeo replaces rex tillerson, was fired by trump in march. antonio guterres hold talks with british prime minister the theresa may in london today and discussed a range of issues, including working closely to reestablish international norms against the use of chemical weapons. the secretary-general added he and the prime minister are very keen on make sure that the world respects the rules based order. the three whistleblowers and she scandal discredit them into what he called the epidemic of sex abuse and cover up the catholic church.

the spoke to reporters today after spending five days of the .ope and his vatican hotel by a says is not often the pope that i was part of the problem, and i apologize to you. some of the migrants in the turbine of central americans seeking asylum in the united states have begun what could be a long process. more than two dozen of them have been accepted for processing by u.s. border inspectors at a san diego crossing after processing, markets are transferred to a detention center that could take years before their case which is immigration court. 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.

julie: let's recap today's market action. after atocks dip reprieve of selling after the ad statement talking about signal that inflation is closer to its target. but that was enough to offset losses today, and consumer staples is a weak group, telecom also selling off on a day partly due to earnings. one of the big tracks in the s&p 500 coming up with numbers that missed estimates. and we had a lot of numbers after the close of trading. let's look at a few of them. tesla shares are rising after hours and the stock is about 30% float is short. tesla says they will generate cash in the second half of the year as the model three

production gains traction. if you believe that scenario. test that is saying it is on track to make 5000 of those model threes a week two months time from now. in the meantime quarterly revenue beat analyst estimates and they produced the model three at a rate of more than 2000 units for three straight weeks in april that is something that was a talked about previously. pointed out earlier that a lot of tesla's thesis comes down to whether you have faith in elon musk. itther you do or do not, will color whether you believe it will reach his cash targets. julia: and as far as the call is concerned, comment on production targets, increasing higher. and also what they say about

autopilot and recent speculation at announcements regarding lawsuits. and the technology and concerns about spending on vehicles. $2 billion worth. a whole host of issues beyond the general an underlying business investors are looking at. as far as at sprint t-mobile is concerned. we got the earnings, but want to know the prospects for the time with sprint and t-mobile. sprint announcing they are a newing the heads, executive chairman and cfo michelle combs picking over in may. they announced an increase in gains in new customers, coupled with t-mobile raising industry-leading substrata forecast on tuesday. you have to wonder if that were

this is our we can the company's argument they need to do this merger to cap the investment as far as five g networks in the united states. also, spotify. earlier when ike said what spotify has been since its ipo, he did not have an term.and the sense of the since it began trading, it has risen by 29% and reached a record since it began trading in today's reckless session. there is not the case now, and the shares are pulling back by my book 5%, and the subscriber gains the company is reporting, committed users in the first quarter, a 45% increase year-over-year. that is in line with the range that spotify had projected, however, perhaps because it wasn't better than they projected from the is a recent we are appearing to see the shares down and after-hours session. and some good news for

investors despite a slump of 30% this year for kraft, cheering and beating analyst estimates that gave the stock a significant left in after-hours trade. the charges the company faces like many others in the package foods industry, the grocery industry is changing consumer tastes. but for now managing to see a boost and profit. julie: one difference here is you have an aggressive cost-cutting team at the head of it in the form of richer have to of berkshiree form hathaway. fed leftd today the rates unchanged and said inflation is close to making its policymaking target of 2%. . to bring them the latest is vince.inderella -- is

>> this is a battle between the algorithms and fundamentals. we saw the dollar selloff and treasuries gain and equities reversed. this is algorithms trading in the fact there was a sentence missing the march statements, talking about economic growth. they took that as hawkish on inflation and maintain the invasion expectations, but a dovish outlook and no from no firmon -- projection, and the market for the day itself. eyes lookedy, human at it and said this is a very confident fed, and the growth outlook is still very positive. their exceedingly positive about rate hikes inflation expectations. everything reversed back, and then some. julia: we have a confident federal reserve and we have mario draghi saying will take our time in europe.

and we see softening of data. tight all of that to what we are seeing as far as the pickup in line for the u.s. dollar and the prediction out there. vince: the same is happening with the sterling and the bank of england expected to raise rates, and they have backed off because of poor economic numbers from the u.k. and the pound since then has dropped off significantly. what you are seeing is the version between the g10 nations, the u.s. central bank is on track to maintain rate hikes as soon as june. the other central banks are backing off and gives the advantage to the dollar and interest rate differential to the dollar. julie: and inflation is finally here. you have a look at inflation expectations in a chart you sent us. this is the five year even in

white, we have crude oil prices that is pushing inflation in blue. what does this tell us? thing you think when you look at us is that it doesn't fall into the pce, which is the fed inflation. this is a pci and that's because of his energy and food, which the fed backs out. that reality is that this is a market price forward, the breakeven rate. traders are betting and putting their money where their mouth is and that is oil leading the way. whether the fed watches food or intoy or not, it will full the other model that the fed watches. that may give the fed the confidence, i want to agree four to go forth with versus three. julia: to wrap this up, what

extent are we seeing of other areas beyond united states and what we are seeing here? we see a patent of weakness despite growth of performance. what the demand function is, you can make up your mind of what you want to argue, and where is the obvious trade for you in terms of eurosterling? vince: emerging markets. sterling is still will offered. if you have a few things to worry about, 133 is looking good. a jumping from emerging markets and a lot of traders telling me real money, corporate --m a flash in the pan stuff corporate's are telling me they do want a flash in the pan stuff. so,as been working anyway they cut their losses.

the turkish lira is not far from its all-time low. julia: to what extent is this decoration of positions acknowledge that everyone is the trade action? vince: pretty much. it is hard to say, but one of the things that generally could additionally and the dollar run is a warning of capitulation and the alternate the other way. julia: there is nothing unique about this trade. julie: thank you vince, we appreciate it. coming up, a different story for consumers and how the fed rate rises plays out in the housing market. this is bloomberg. ♪

asia: state farm ceo confident in this compass position in the mortgage industry, and advantage of over the lien dollars can help with that, and he spoke with selina wang. >> we are taking a look at the competition for the first quarter and we know where we are at. is exciting to notice we are again a largest mortgage lender with widened the gap between where we are at our close competitors. exciting news to start 2018. >> how much is the gap? >> a few million in the fourth quarter and we are north of $4 billion. >> what is keeping quicken ahead? what is differentiating you? it is a variety of things, it is important to be online,

everyone is online, but what does that really mean? we look at our culture and the foundation of everything we do as a company, that gives you great team members, building great things. how does the experience change how homeowners go through the long process? for us we think the rocket mortgage expenses something you want to use. first-time homebuyers are one of our largest users, and is a secret to our success. looking in the big banks, they must have some advantages? >> we think about all of our competition and the banks are one component. we also look at startups and the way technology is advancing today. someone working on a new product in california or detroit, michigan, can jump on the scene quickly and we try to look at all the competition. the banks have a large client

base, but they are also in a situation where clients are demanding to have the information they want at the touch of a button on mobile phones. that is where we are able to bring them something special and grow that market share. >> you mentioned upstarts, and you have better mortgage, and so how do you see startups changing the market position and are you thinking about acquiring some of these companies? always looking for good opportunities and some victories mentioned are startups and then been around for some time. i think competition is good and when you have people pushing for innovation in the right way to forces you to look at your business model to make sure you're always pushing and advancing. we focus on innovation. we are in detroit, michigan, and people to look at that as a place that is in the heart of innovation. without we have a lot of great team members and that is a lot of great schools and people looking to join a company where innovation is critical. just drives usn

to keep thinking about the next thing we have to build. if we do that will maintain our spot as the market leader. see the republican tax overhaul and packing your business and industry overall? >> tax reform is important for businesses and i don't think you'll have a large impact on our business or mortgages in general. the housing market is right robust turnout, and as you know, supply has been low for quite a period of time and we need to see some other things help assist that supply problem. builders getting into the market place is the most important thing to help boost supply and keep prices consistent, or increasing, which makes it more expensive for homeowners. interest rates are still at record lows so it is an excellent time to think about refinancing or buying. as interest rates increase,

how are you seeing an impact business and how much is refinancing in terms of larger pie of your business? of the largest purchase lenders in the country, probably top five or six if you look at our purchase business and compare it to the other lenders overall business. we are strong in both categories. this is where our business model shines and one of the reasons why we are now second quarter in a row the largest under in america. by having a centralized business model and focusing heavily on strategic marketing, could find the needs of the consumer out there are lists of interest rates. is more challenging on the refinancing site? of course, but there is a can of need and people are changing concept got cash at record levels. people can't find a home to buy, people are making renovations and pull cash outs to do that. our refinance business still flawed and will continue to be strong because all the rates have gone up, there is still at

historic lows. ofia: that was the ceo quicken. conduct, will other wall street firms follow aluminum down south? we will discuss. this is bloomberg. ♪

julie: when progress is debating tax reform, we also heard warnings to the effect on high tax states like new york, limiting deductions. corporate holdings moving from wall street to national banks in part to the tax differential. will come our new york executive editor for global television, jason kelly. aside from some jealous and people live the good life and

national. >> country music. julie: lower cost of living. which is a huge factor, imagine taxes, and companies are looking around. what is interesting here is allies bursting went through an amazonian type of search for a cities.quarters in 30 cost of living, education, all of those things like into this. companies like this are receiving offers, an attractive ones from states that aren't new york or new jersey of pennsylvania or others cost are high, and higher because of taxes. julia: who is going in terms of employees because that is a big move and there are functions that you can't do if you are in new york. it is interesting because they were looking at additional office space and the ultimately decided to move headquarters to ashville.

, couple of questions banks have moved to jacksonville or expended to solving city, but this is moving headquarters. -- you that this meant know the investment banking world well and it feels like there'll be a lot of airplanes going to national. ashville. the big questions is is this the beginning, the canary in the coal mine? or is it an outlier? if you get transferred out there and you don't want to work there anymore, it is not like you can hop across the street and work at jpmorgan goldman sachs or bank of america. there needs to be more movement of this type before people broad statements

about the death of wall street. julie: and there are other banks doubling down on wall street. jason: jpmorgan is building a new as of headquarters on park avenue, so we will see how it shakes out. phenomenon,obal people look at brexit, london, and other places. and there's an interesting stat, 6% down in terms of employment in the security's industry since the financial crisis, in new york city. you see there is a 23% rise in private sector employment, and that is a big delta. will there is a couple hundred thousand people working in financial industry, seeing it go down a little bit is still startling. some have exited from the

industry or move to different locations. thank you for that. coming up, what you need to know for the tomorrow's trading day. this is bloomberg. ♪

julie: a decline in stock

markets after the federal reserve reduced the word symmetric, indicating steady as she goes her interest rate increases as we see inflation could also do it started. and don't miss breast trade balance seconds up tomorrow 8:30 a.m. eastern and pmi comes out at and 40 a.m. eastern. julia: and cbs quarter earnings after the bell tomorrow. that is all, is next with plenty of talk on tesla. julie: tesla shares are trading higher after the earnings were released. have a great evening. this is bloomberg. ♪ we use our phones and computers

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with robert mueller. they need assurances the questioning would be fair and limited in scope. ty cobb's will be replaced by the clinton impeachment lawyer. mike pompeo attended a swearing-in as secretary of state today, promising his administration will not repeat the mistakes of the past. he replaces rex tillerson who was fired by trump in march. black men arrested for sitting at a starbucks without ordering settled for a symbolic one dollar each and a promise from officials to set up a program for young entrepreneurs. on april 12,ested leading to protests over racial profiling. five members of the national guard were killed today after their cargo plane crash