what the truth is in those two hours, in highly amazing time to spend alone, one-on-one, is by understanding at least that if you were briefed by the visit and, what he told you. i do not think that is unfair to to understand what policy is. let me ask you, did the president say it will -- he will change the structure in syria? topresident's are permitted have conversations with their cabinet members that are not repeated in public. the capacitysident for in-depth conversations with him by providing the best foreign-policy advice that i can. you this, mr. secretary perry here is something you can answer for me because he will not answer any questions that would get us to the truth. a cia director, he stated in her inner edge in an interview that you fully expect russia to continue attacks on our democracy by continuing to interfere in the midterm election as we speak. conversation with, i hope

is that it laid out the consequences of interference in the 2018 election. i know you can't tell me that, oh you want to share that one with me, that is what you want to share? >> the president has disclosed that. the president disclosed what he said to vladimir putin about says heinterference and is confident that as a result, vladimir understands it won't be tolerated >> i wish he said that in public in helsinki. senator graham and i and others are working on a bill to hold russia accountable. given that you assert the administration's tough on russia, will you commit to working with us on a sanctions bill? >> yes, sir. >> thank you. -- north korea, i asked you questions about what is our for north korea. must say i largely agreed with what our goals are. i want to ask you, since we haven't heard anything as it relates to north korea, did north korea agree with our definition of denuclearization,

meaning the dismantlement and removal of all new their weapons , facilities, technology, and material for north korea? >> i think i can answer your question but let me begin by saying i'm engaged with a complex negotiation with the north koreans. i do not intend in this public setting to share the details of every conversation that took lace and those. but i will attempt to answer your questions without disclosing the concent of the negotiations. i'm confident they understand our broad definition of denuclearization that goes from infrastructure, nuclear warheads, biological weapons. >> we understand it because he waited for the record. have they agreed with you -- >> i believe if thoroughly understand that and they understand it that they did not agree. >> they agree to end the reduction of uranium -- toi would welcome the chance answer questions and i think it would be most illuminating for the folks. >> it is a simple yes or no. >> it was the previous question.

could you repeat it? threeh -- did north korea -- for military programs? >> they agreed to do nuclear -- denuclearize holy. it certainly includes -- >> i would love for you to come to a classified setting a tell all members what transpired because we do not know. >> thank you, senator. >> mr. secretary, thank you for doing this job. the president made a wise to vision pointing disappointing u.s. secretary of state. and you are putting yourself very well today and we appreciate that. you have always been straightforward with us and i appreciate that and i know many of my colleagues, not all, but many fully appreciate that. >> are you prepared to say most part are you just going with many? >> i will stay with many. [laughter] let me say that as far as what happened at the nato summit, very few americans heard any

except the argument that went on and i know the president and you believe and i believe and most everyone believes that nato is the most incess of military alliance the history of the world. as you pointed out, it is certainly a pillar of our national security and one we need some -- to support and work well. there are very few downsides of nato but there is one limit. the president has underscored that public week and his predecessor attempted to do it here at all their predecessors attempted to do it. those of us who meet with the europeans from time to time underscore it. that is the funding or lack thereof that the europeans have done. nato nations are actually meeting the commitment. first of all, the president is to be commended for underscoring

this nato, as only he can do ins unique way, and actually getting them to start talking about it and finally starting to agree. there were other things that were lost as far as that meeting is concerned and i like to talk about those things. number one on the deterrent side, the commitment to increase readiness and increase in speed of the time it takes to assemble and deploy forces, that is a huge step forward. andrts to improve mobility process to enhance the speed in which nato can make decisions, the fight against terrorism and increase allied resilience against terrorist threats through a new framework to ensure biometric data is a major company and the opportunity for macedonia to receive the opportunity to fulfill the promise from the summit, that was a positive step for the alliance. could you comment on those very important steps forward that >>pened at the nato summit?

it was an incredibly productive nato summit. for my conversations with his attorney, he said, among the most productive he had ever been a part of. he has been doing this in little while. you talked about the battalions and nato -- nato combatants, something they have not been able to do for some time. now a real commitment, we have follow-through to make sure the implementation of that occurs. it would be a great thing to deter russia, if we could get those countries and our allies to get to that level. sharing,e increase in that is certainly important, but the europeans are as committed to deterring russia as the united it's of america, and need to demonstrate that not only with dollars but readiness as well. we have seen reports about the s of german readiness. they need to be truly ready.

the president raised another issue about energy and energy's at the nato summit. he talked about the pipeline and the risk that creates to the alliance in the events that russia should decide to use energy as a weapon. two course either formally or informally, germany or other european countries, to raise it to the forefront are frankly, european countries understand that risk and support america, and our position on that as well. finally, he talked a little about the nato mission and is new role in fighting terrorism. i want to say thanks to so many european countries that have steps toward you even just this past few, i guess it is now two weeks since the nato summit, over 1000 additional commitments from allied nato partners headed to assist us in operation resolute support in afghanistan. a great commitment and something president trump worked hard on at the summit, and really good outcomes for america. let's thank you.

you are to be personally commended -- >> and that is secretary of state mike pompeo testified before the senate foreign relations committee. a heated exchange therebetween pompeo and the ranking demo that on the senate or in relations committee. pompeo senate president is entitled to hold meetings in private and he does not speak with the interpreter who was present at the one-on-one meeting between president trump and president putin. the chairman asked the pompeo on successes achieved at the meeting. we also want to keep you posted that the president and european commission president will be making a joint press statement in the rose garden. we will bring you that when it happens but we should note that at the moment, it is about 20 minutes left in the trading day and we have u.s. is getting a little bit of pop to session highs now. .8%ec leading the way that we are waiting facebook results at the those as well. from new york, this is

bloomberg. ♪

a pop in just the last

how shouldng investors be positioning? when it comes to internation us we think you will see some growth. europe on an economic basis, we think -- -- long end of the curve.

we remain positive on high yields. we also think u.s. investors should also explore some of the activity outside of the u.s. fixed income market. don't just stay in the united states. >> thank you. now, we are awaiting president trump and the european commission president in the rose garden. air in a presse conference. the dow jones reported as that to secure concessions as well. we will bring you that when it begins. this is bloomberg. ♪

>> you are looking at the terminal with all three averages rising with the highs of the session. we will be hearing from , a meeting atp the white house. we have been talking about the report from dow jones, that

there were concessions, president trump is set to share eu concessions to avoid a trade war. leslie have a hard time disentangling when markets -- this rally has pretty clearly keyed off the headline. in the short term, we can seem to draw a bright line. >> you can see it with the sector moving. earlier as much as 4%, it paired its declines as much as 3%. let's -- kevin cirilli at the white house where we see -- >> the president to have this joint press availability not on the schedule earlier today, we this, dow jones

reporting that some type of preliminary deal has been met, including with the european union vowing to purchase more soybeans, and this of course comes as the president and the administration has a billion dollars and eight to farmers from largely republican backed states who have been a bit weary of how the president has negotiated on the issue of agriculture. the president is anticipating giving a campaign style speech in iowa tomorrow. i would note what exactly he said prior to coming here, telling a german outlet, germany of course having concerns about the lifting of any tariffs. defuselargely sending to tension and ratchet down rhetoric. it now appears he is not only doing that, but brokering some type of deal. >> good stuff. kevin, thank you for keeping us posted. we will check in with you later. for more on how all of the developers are impacting the markets with about seven minutes to go before the close, let's ring in remain. julie was talking about how the

indexes for the stocks are at session highs. spiking ase euro is well. what else is up and what else is down? >> automakers start to pair a lot of losses. i think it was hit right on the head. the effect of the trade war, the reaction we saw starting to get headlines, it was definitive. not only because of the size of the industry that would be affected, but also the fact that it is largely a war being picked with a large trading partner and ally. >> if you could only know one thing in the next few minutes, facebook earnings -- >> i would go with trump. this was a huge overhang. look, look, facebook is huge, but the other component of the market has more of the manufacturing type of stock that has really been hurt by this.

the prospect that you would get a 25% tariff in the next few months is a huge overhang. we look at what gm is doing and , andhe component makers all of these companies, they were getting hit hard on the prospect they would go home with nothing to show. at least from what we know so are right now, it appears there pauseleast some sort of and the margate seems to be embracing that, not only for auto tariffs, but maybe what it means for other tariffs. >> i'm looking now we have the dow swinging 319 points. a pretty big move in equities at least for the dow, of late. >> i would probably agree that this perhaps is more important and with broader implications that come on, it is facebook and it will be fun to talk about. more thantalk about one thing. >> it is true up in maybe we

will have to choose. according to joe. i'm curiousk -- about technology. it is something you have watched, semiconductors an interesting actors. the homebuilders have seen a pretty incredible selloff in the past four sections. -- sessions. some of the underlying signals in the market as well. >> the market technology that we were all sort of waiting for the earnings season to start, we knew we would get results. they are not as lust on it. you talk about facebook and they rallied into the earnings season and coming into tonight. the question is even if they do this, will it stick? in the morning? thanks it we#>> it.eciate

all right. the market closes next. u.s. stocks are now at session highs as the president of the united states donald trump and the president of the european commission get ready to hold a press briefing. it. all right. we understand that president trump has secured concessions from the eu. this is bloomberg. ♪

[applause]

julie: "what'd you miss?" stocks are rallying on reports of a deal between the u.s. and eu. i'm julie hyman. scarlet: i'm scarlet fu. joe: i'm joe weisenthal, and if you are streaming live on twitter, welcome to the closing bell coverage everyday from 4 p.m. to 5 p.m. eastern. scarlet: us take a look at markets trading. we had a late rally with indexes booming higher in the final 30 minutes of trade on the president planned news briefing with junkball juncker josh -- withude juncker jean-claude juncker buried the doubt -- juncker. you can see the s&p 500 up 9/10 of 1% which is the highest since january. is also comingld up because of selling in treasuries and oil, which has

been higher for most of the day, had gotten a pop after a bullish report showing a larger than expected draw in inventory. risk assets are on the move. equities was the star of the last 30 minutes. julie: let's talk about what is happening in the automakers and auto-parts makers. if you look at the index tracking those components, we saw them come up off of the lows of the day. still down 1.5%, but this is a group where we saw movement. dear saw move, and other companies that cater to the agricultural industry. if you look at earnings, you look at a mixed bag. as a result ofs tariffs. thee talking more about knock on effect of materials. we broke those numbers after the close earlier

yesterday. the stock was down a bit. now down by 4.5% going into the close here. we still have the time warner unanswered question or overhang if you well. on the plus side, corning shares are rising. the company beating estimates and ups as well. we have not seen universal tariffs affect as of yet in different sectors of the u.s. economy. are we getting qualcomm numbers? scarlet: we have headlines out of qualcomm that it is terminating the plan to buy an xpi semiconductors. china needed to approve that deal and the approval has not been forthcoming. qualcomm is pulling the plug saying they are terminating the agreement to buy them. qualcomm will also buy back shares, $30 billion worth of equity as part of this same announcement. qualcomm shares will move on that. it had turnaround in trading today. joe: investors are very happy to

see that deal fall apart. julie: the company also is going to have to pay a $2 billion fee for canceling this acquisition. also, it's revenue beat estimates. third-quarter adjusted revenue. nine -- $5.19 billion is what it was. scarlet: we also see qualcomm fall in after hours trading as well. julie: it could go down more. there was a bloomberg survey of analysts who cover qualcomm and they say the deal was canceled and it could fall to as low as $92 a share. scarlet: this is an xpi, right? julie: correct. we have had ceo step down recently on misconduct, it does not appear to be the case with this company. retiring as gilead

reports earnings that beat estimates. aread shares in after hours not up much. scarlet: in the meantime, we are waiting for facebook's second-quarter numbers. theant to welcome porter, corporate finance and managing partner and david kirkpatrick, ceo of tech economy -- te chonomy. it comes down to a lot of drama for facebook in the second quarter. does it matter at all for facebook financial? dramaticama was not and it won't be in the short-term. money keeps flowing in a bucket loads. that is lulling the other issues. no financial problems would be my general state. joe: porter, thoughts?

mostu're looking at the profitable company in the history with a 47% net margin. even though they keep talking about spending money to solve all of their social and privacy and false news problems, they do not spend a scintilla of what is coming in through advertising revenue which is about 95%. julie: facebook numbers are coming out. second-quarter earnings per --re is one dollar 70 share $1.70. call it in line. atly active users also shy 1.4 7 billion. that estimate was 1.4 8 billion. monthly active users is 2.2 3 billion and estimate their was a quarter billion. a little bit of a mess on the side. as you said, a little bit

of a mess worried there is so much expectation, numbers are overall great for company the side. porter: you also have to look at instagram, which is the sleeping giant inside of facebook. it will make twice what they paid for this quarter. as julie pointed out, it gained 22% so far this year and has recovered completely from the march selloff back in may. when you talk about instagram, i did a quick search for instagram and the earnings release, no mention of it whatsoever. when with a break it out? are they going to be required at some point? porter: i think it is not that far off in the future. there is a possibility instagram gets spun out as a separate company. it has a chance of becoming a much bigger entity then facebook itself. --: facebook recently

briefly touched 10% decline. stellar, but the key is at any level up, slight mrs. matter -- misses matter. you can see how much the stock had been priced for perfection. julie: when you look at the user numbers below estimates, i'm curious, is it because of the bad publicity? is that taking a toll? porter: i doubt it to be honest. security analysts are not experts at figuring out user numbers. they are financial people. that this was a nosebleed level stock that had gone up too much. i have been feeling that the issues surrounding facebook's political culture, privacy issues inevitably are going to cost money to resolve. at some point, it will affect the stock.

i do not know exactly what would lead people to bid it up to what it was, 215 or 217, and now it is 198. it is not any fundamental problem with people wanting to use facebook if that is what you are asking. porter: david, you would know this better than i. teens and preteens are gravitating rapidly to instagram and away from facebook. that is a problem because they are the next generation of the 2.5 billion daily users. david: it would be a problem if they did not own instagram. scarlet: a lot of people don't even realize that instagram is owned by facebook. i want to jump in here because be has announced results as well. onethird-quarter eps of dollar and third-quarter operating revenue of $5.2 billion beating the highest .stimate the contest and estimate was for

$1.09. we are focused on facebook down about 9.3%. going through the release here, i noticed in the headcount. it was 30,275 as of the second quarter. % increase47 year-over-year. they have to vet the postings and news that show up on the newsfeed. david: that is not even show all the hiring that they have done. a large number of people are coming to contractors and service firms. joe: there was a great story on the bloomberg today about that. contracting in silicon valley and the employees at the office, they focus on out for bed, where there but they feel invisible. porter: facebook announced 20,000 new employees in london and 20,000 new employees in chicago. to smooth over

criticism on the privacy and fake news, and other issues. regulation is coming. that is the answer. julie: quickly i want to mention numbers from a very old economy company, mattel. the toymaker. they're not falling in line with hasbro. lost $.56,quarter must wider than the $.31 estimated and it is cutting over 2200 positions. they are going in the opposite direction of facebook which is growing. i want to bring it back to facebook with a quick russian on mark zuckerberg. as you talk about token moves for addressing the issue of regulation, i know zuckerberg controls the thing, but it is interesting to me putting someone else in charge is not that much a part of the discussion. or at least bumping them to chairman, putting an operator in the ceo who can better address, because he has not been doing a good job.

porter: not a good job. julie: why is that more -- why is that not more of a topic? porter: they have such a prestigious board that does zero in corporate governance. those titans of industry and corporate governance should do something about zuckerberg and about sheryl sandberg and the activity that facebook is hardly even approaching solving. scarlet: i'm looking at the board now since you mentioned it read reed hastings -- mentioned it. reed hastings, former american express people. just looking through the results, david, jump in. heard, hem what i've has done quite a bit to shake things up. he is somebody who knows how a big company should be run and most of the other board members do not know that. he has insisted they need to have more adult supervision in the room. but itnot happened yet

could be related to why elliott trade is leaving -- elliott traig is leaving. the real sick of facebook is that it has no competition. that is the reason it is unstoppable. scarlet: except instagram maybe. [laughter] the little decline -- i should say the pretty big decline in the share price, a lot of that might have been towards sellers watching the stock hit toward 220 over the last couple of days and taking their profits. the cancellation by beijing of mark zuckerberg's innovation , thato set up in china also had a negative effect. reporterh frier, tech in the life blog, facebook has

not missed on top line since 2015. that was a long time ago. it shows the incredible consistency of this stock. what, -- david: it is somewhat foreshadowed because they said their efforts to control the fake news problem could have led to fewer page views and i could affect revenues. what, if profits went up, it also goes with another theory that they do not have to show more ads, they can just charge more for the ones that remain. joe: is facebook under monetizing? have levers they and dials to pull at their current level that could crank this up? david: yes. if they really wanted to. sheryl sandberg said they never optimized for profitability even though they are the most profitable company that ever existed. scarlet: that could turn off active users. david: i don't think that is this style. i don't pick it would. scarlet: it could discourage

people from going on facebook as they don't want to see any more ads. the daily active users are below estimates, but it was an increase 11% over year -- year-over-year. if you look at the first quarter, percentage increases of about 2%. emphasizes the 11% number, but they are not a seasonable company. you compare it versa preceding quarter. not last year. this is a market slowdown. versus a preceding quarter. not year-over-year. this is a market slowdown. david: i know a lot of americans say they do not want to use facebook as much, but i discount that because it is such a global company that their profits are increasingly coming from a growing world. understanding what your friends are doing is not the way to figure it out. it may be that something has affected their willingness of people to use it. porter: i also think lurking in are serious

competitors. alibaba, tencent, maybe by do -- baidu. they have multiple revenue streams and a business model that is better than facebook's. scarlet: we often talk about how facebook is not exposed to president trump's trade war. is that accurate that they have no presence in china because of the band and the regulatory moves are not linked to the trade? porter: they are only in qualcomm and there is a token. david: the actually just created subsidiary. julie: i think they got shut down already. i think -- david: i'm behind on the news. ok. not pass.t, it did david: you are on top of this. julie: [laughter] scarlet: we have results from ford to report. $.27d quarter is an eps of

trailing the consensus estimate of 37% -- 31%. -- $.31. here is important one that ford has cut its full-year earnings per share outlook. it seized $11 billion in restructuring costs over the next three to five years. this resulted in a drop of after hours trading in about 3%. the center of every tough thing going on right now. trade, increase in raw material costs, massive funding costs, higher interest rates, so not a good day for any of the major automakers reporting today. scarlet: and we will be checking in with their cfo later. julie: and he is talking about in the release there is quotes from bob sang the team is making the hard decisions to raise the underperforming assets.

this redesign will take time. ifthis case, it is unclear this forecast is a result of higher costs or a result of trying to turn around underperforming properties. interesting there. scarlet: it was a particularly challenging quarter for asia-pacific and others. asia is focused on china to take urgent action to address the underperformance. it is proven that the automakers are at the center of the trade war and head of lot -- and have a lot to gain and lose. let's go back to facebook. julie: i have data from bloomberg intelligence. this does not include the first quarter it gives you an idea. top line asia monthly active users. of the the biggest part user base. following that, we have the rest of the world, and it why is europe. all the way at the bottom in blue is u.s. and canada. it's interesting you have the

u.s. and canada not being the the userportion of base. david, you talked about ad rates. what are the different ad rates? i don'the ad rates know, but the revenue per user per year is well-known. in the u.s., it is in the vicinity of $30. large is something around seven dollars. i don't know what asia is, but the point is, you make it up in volume at a certain point. they are now at 2.2 3 billion. that is an awful lot of people -- 2.23 billion. that is an awful lot of people. porter: from an advertiser's perspective, the model on only paying when a viewer clicks on your ad beats the conventional model of advertising and you take x many of dollars to put a commercial on television. scarlet: we see the president walking to the rose garden and with him is that european commission president.

the two are getting ready to make a statement after their meeting. let's listen in. >> i appreciate all of our great senators and so many of our representatives for being here. senator john bozeman, john, you are here someplace. thank you. senator mike crapo. senator steve daines. senator hoban. they are all here. senator cindy hyde smith. thank you very much. senator james lankford. thank you james. -- thank you, james. senator pat roberts, he loves those farms. he loves the farmers like i do. representative diane black. diane, thank you. representative kevin brady. he has our new tax bill, how is it coming, kevin, good? conaway.ative mike

mike, thank you. --resentative ted newhouse dan newhouse, thank you d, dan. christie, that was a great win. representative david rikers. david, thank you. we had a big day, very big. we met here at the white house to launch a new phase in the relationship between the united states and the european union. a phase of close friendship, strong trade relations in which both of us will win. are working better together for global security and prosperity, and are fighting jointly against terrorism. the united states and the european union together count for more than 830 million

citizens. and more than 50% of the global gdp. together, we are more than 50% of trade. if we team up, we can make our et a better, more secure, more prosperous place. the united states and european union have a $1 trillion bilateral trade relationship. the largest economic relationship anywhere in the world. further strengthen this trade relationship to the benefit of all american and european citizens. this is why we agreed today, first of all, to work together towards zero tariffs, zero nontariff barriers, and zero subsidies on non-auto industrial goods. [applause] thank you. thank you.

we will also work to reduce barriers and increase trade in services, chemicals, pharmaceuticals, medical products, as well as soybeans. soybeans is a big deal. the european union is going to start almost immediately to buy a lot of soybeans. they are a german is market. by a lot of soybeans from our buy a lot of soybeans from our farmers. doors foropen farmers and lead to greater prosperity in the united states and the european union. it will also make trade fair and more reciprocal. my favorite word, reciprocal. secondly, we agreed to a strengthened and a strengthening of our strategic whoppers and with respect to energy. the european union wants to import more liquefied, natural gas.

-- gas from the united states, and they will be a very big buyer. we will make it very easy for them, but they will be a massive buyer and they will be able to diversify their energy supply. they want very much to do that and we have plenty of it. thirdly, we agreed to launch a close dialogue on standards in order to ease trade, reduce bureaucratic obstacles, and/costs dramatically -- and slash costs dramatically. we are protecting european and american companies from better than ever -- we have never done like we have d -- we have never done like we are doing. after we do this deal, and other deals we are currently working on.

likewise, the european union will do better, stronger, bigger. we will work closely together with like-minded partners to reform the wto and to address unfair trading practices, including intellectual property theft, forced technology transfer, industrial subsidies, distortions created by state owned enterprises, and overcapacity. immediatelyo set up , an executive working group of intelligent people on both sides to be our closest advisers, and they will carry out this joint agenda. in addition, it will identify short-term measures to facilitate commercial exchanges, and assess existing tariff measures and what we can do on that for the betterment of both. while we work on this, we will

not go against the spirit of this agreement unless either party terminates the negotiation. so, we are starting the negotiation right now, but we know where it is going. we also will resolve this deal and aluminum tariff issues, and we will resolve retaliatory tariffs. we have some tariffs that are retaliatory and that will get resolved as part of what we are doing. with that, jean-claude, please. >> mr. president, ladies and gentlemen, and i was invited by the president to the white house, i had one intention. the intention to make a deal today. and we made a deal today. we have identified a number of areas on which to work together. work toward tariffs on industrial goods. that was my main intention. tariffs onn to zero

industrial goods. we've decided to strengthen our cooperation on energy. we will import more liquefied glass -- with liquefied glass from the u.s. -- liquefied gas from the u.s. we agreed to establish a dialogue on standards. importopean union can more soybeans from the u.s. and will be done. we also agreed to work together a --e reform of the dwt dwta. unless one part of what stop the negotiations, we will bolts -- we will hold further tariffs and reassess the tariffs on steel and aluminum. this was a constructive meeting, thank you, donald trump.

>> thank you jean-claude -- thank you, jean-claude. [applause] i want to conclude by saying this was a very big day for free and fair trade. very big day indeed. thank you very much, everybody. thank you. [applause] scarlet: the president and eu commission president speaking at the white house. this was a last-minute news briefing that they had announced . the two sides announcing they are working toward zero tariffs on non-auto industrial goods. they have committed on strengthening cooperation on energy. liquidwill be buying natural gas and import more soybeans from the u.s.. for the most car, they were talking about how much this was a commitment to do something versus we have agreed on where we are going towards when we hold these discussions which begin now. ,oe: perhaps one area of relief

was we won't go against spirit of the deal. that appears to be a commitment to not do anything now. either side could break it off, that in terms of imminent tariffs or imminent hit to trade, that will not come. juncker himself said we made a deal today. the president said we will resolve the steel and aluminum tariffs in addition to retaliatory tariffs that have been set on both sides. julie: setting very specific goals to work towards, but not yet achieving those goals. we also have breaking news on biogen. the company coming out with study results on a drug to treat alzheimer's. and their partner company said the phase two trial slows the progression of the whatse by 30% compared to ony said was 25% expected

estimates from analysts. meantime, we can see biogen down along with facebook. we will get back to facebook in a moment. i want to get context on the president and jean-claude juncker's announcement. what's bringing kevin cirilli, our chief correspondent there live. kevin, give us a sense of how surprised the attendance -- were in hearing this where juncker was clear on saying his main intention in these discussions was to work toward zero tariffs in industrial goods. very surprised. as our producer pointed out, the president was joined by republican lawmakers in the rose garden. this comes at a time when the

president has been urging republicans to calm down, and really focus on the agricultural double laments -- agricultural development. the president pointed out soybeans saying they got the proposal from mr. juncker to open up the soybean markets. as he is incomes the farm states. he will be in iowa and mike pence is also going through this week. a clear development that has emerged. he also alluded that tax proposals ahead of these midterm elections, but we should know the optics of this because mike pompeo is testifying at the same was as this joint statement being discussed. kevin, in terms of the , ififics, mostly if a deal

they delay any imminent tariffs and have a framework, but mostly framework foris a further conversation, so how much substance is there really and could we be back to the drawing board in a couple of weeks? could we see an intemperate tweet and this turns out to be nothing? kevin: absolutely. we have seen this time and time again. this was a president who has faced pushback from republicans and also the business community. harley davidson, and a host of other companies, with boeing for example. they are making their case known that they are against how the president is negotiating the trade policy. he suggested at the rose garden that he hears the criticism and wants to continue to get some type of deal going. we have not seen movement at the polls as a result of how these as a result of

how he is negotiating. julie: also, the criticism regarding relations with russia, kevin, a market difference between that rose garden statement and the fact that his secretary of facing questions for congress. we will monitor that as well. thank you for your perspective. let's get back to facebook. we are here with david and porter watching these numbers from facebook and watching shares continue to fall in the after-hours session in reaction. i want to bring up again appointed scarlet brought up earlier because a chart was posted on the live blog tracking this is that user growth is moderating at facebook. you don't be concerned about this particular issue. david: facebook is still growing

11% year-over-year. that is not terrible. if you are a believer that this is a company -- the profits are growing. they beat on profits. i'm not quite sure where the worry is in terms of the numbers. scarlet: it looks like europe is where daily active users declined. 282 declined from ,000. does that mean with the increased regulation in europe, that could be a template for other parts of the world? porter: i think you have hit on a crucial point for facebook's future. julyll be a cold day in when washington steps in and starts to regulate facebook. it is going to happen in europe. is there anything facebook can you, to helpck to the government in a sense. they make these small steps

toward improving transparency. you can click on a political ad and see who funded it. what more should it be doing at this point? david: it has done a lot to improve transparency around advertising in general. i think they need to be much more candid about how complex a challenge it is for them to figure out what their role is as a publisher. and, figuring out the degree to which they are a media company. they have been high-handed in their statements. just trust us, we are good people is the general attitude. we have to get off of that and show humility. i think users will appreciate that because people are not trusting this company. i guess we are seeing this in the numbers. joe: earlier in the conversation, we talked about conversation -- competition with

these chinese internet giants. one thing i'm trying to rub my head around within this, are they just huge because china is huge and they have to market -- have the market to themselves? or is it because they are coming major competitors in common markets? david: i don't think they are huge for any reason other than that they are in china. i think they have ambitions and aspirations and china is behind those aspirations to grow globally. i would disagree with what porter said earlier and i do not see facebook getting competitive pressure from those chinese companies in the near term. except to the degree that they are being cut out of china. porter: and when you look at the growth charts of the facebook, you see where the active growth is coming from outside of the u.s.. that is where alibaba and tencent, and baidu are.

they are successful in doing that. david: but not in competing directly with facebook. app,senger, what's is still the wedding service on the messaging globally and it is still growing well. scarlet: free cash flow -- julie: free cash flow is seeing a decline to $2.8 billion. that's in the current quarter. any thoughts on what that could be about? porter: they have hired several hundred thousand people in the last scarlet: 4700 people and hiring. porter: as a percentage of revenue, it has had no impact on the net profit margins. joe: what are you going to be

listening for, david, on the call? david: what they say about what is behind any changes in the change of users is significant. also, i want to hear them talk about concrete steps they would continue to take to address the issue of political interference on facebook in government and political action all over the world because it is happening in a country. we saw the russians and cambridge analytica is not confined to the u.s.. they should be talking openly about what they are doing. scarlet: and it may well be to continue growing the platforms. the quote i want to leave everyone out with is the bloomberg story that is being published now. the core platform is being declining -- is declining. daily average users are falling. you porter and david kirkpatrick.

up, ford becomes the latest automaker to cut its 2018 profit forecast. we will speak to the ford cfo next to get his take. this is bloomberg. ♪

david: i'm mark crumpton -- >> i mark crumpton with your first word news. president trump said the european union and the united resolved to work on tariffs on steel and aluminum. the agreement includes expanding exports of u.s. liquefied natural gas, lower industrial tariffs on both sides, and imports of more american soybeans. state, mikey of

pompeo, says he told top russian officials that there will be " severe consequences for any interference in u.s. elections or the american democratic process." --retary pompeo told set told skeptical members of the foreign relation committee, he has made it clear in multiple conversations. on pointed comment questions of details a president trump's one on meeting -- 101 meeting with putin in finland. recording of a conversation between donald trump and his then lawyer, michael cohen, appears to show mr. trump informed of a payment preventing news of an alleged affair of a playboy model coming to life. reaction to the tape was mixed. -- an not in a turning in attorney and i have no idea on the legal guidelines here. view isthe white house

that you should talk to their attorney about this. that is probably the right view. i believe the president has lots of things he ought to be dealing with right now. >> i think it raises real concern. expect and anticipate federal investigators are looking into it to figure out what exactly happened and if there has been a violation of any laws relating to campaign ethics or any other laws. mark: the president took to twitter today writing what kind of lawyer would tape a client. so sad. global news, 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm mark crumpton, this is bloomberg. scarlet: ford reported results earlier this hour. theick recap, $.27 for second quarter trailing the average analyst estimate. annual revenue is higher than estimated numbers.

11 billion dollars restructuring charge over the next three to five years. the stock is down 4% in after-hours trading. david westin is now standing by with a guest to has more insight into these numbers. david? david: thank you. we have the chief financial office from ford coming to us from their office. bob, thank you so much for being with us. it has been a sober day for the entire auto sector. ford has been particularly -- a hard second quarter. let's start with north america. how did you do with north america in the second quarter? it generated a margin of 7.4%. so we had a solid quarter. we also had a six under million dollar hit related to loss production of high-margin vehicles due to a fire that our

team was able to recover from an eight days. ,e also had a settlement class-action settlement related to airbags with a nominal charge of 299 million dollars. we ran a margin close to 10%. the underlying business of america was a strong and inclusive of substantial headwinds around commodities. david: we will come back to the commodities issue because that is a problem for all auto issue -- auto companies. let's talk about china. china had a tough quarter there and for reasons that go beyond commodities. had ine issues that we china as well as europe, those were the two factors behind the guidance change that we provided today, are really more about our business. we were down about half $1 down on thehina,

consolidated operations as well joint ventures which are unconsolidated. that is largely a run of number of factors. an aging portfolio, under index, and the terms of the portfolio under a lot of strong demand from consumers for utilities. we also had to go to market strategies with capability issues. that resulted in issues with dealers in terms of profitability and stocks we will have to address as well. these are issues that we have to address. we have a plan to do so. we are making progress, but clearly, that was a disappointing result for us coming from china. david: those if things largely within your control. you say you have a plan, what is your timetable? when do you see a real turnaround? you are protecting -- projecting a significant loss for the year there. bob: yes, we are. only expect in the second half is we will get new product, new

escort, a new focus and, subsequent to that, there will be a slew of new products adjusting the age portfolio issue which includes a number of suvs. then, the team is working very hard to address the issues in terms of our dealer stocks, production adjustments, and the dealer profitability issues. it will take time, but we are doing this with a sense of urgency. david: you also refer to commodities and input costs. how large are those problems? can you quantify that? and how much of it is due to trade uncertainty and tariffs as opposed to underlying commodity business? bob: that is a big headwind for the business. at the beginning of the year, we indicated we thought we would see commodity crossed's -- costs increasing and that looks like -- 1.61,000,000,006

boeing dollars. that is originally do -- billion dollars. that was originally due to issues, but also the inflammation of tariffs. the price of aluminum has skyrocketed outside of prices of the united states. the tariffs already announced and put into effect, there is for the trade tariffs potential he going into effect. i've you made any effort to quantify what that could be, particularly when it comes to china? bob: yes. at the quarter, we had probably about a $50 million hit in terms of our china business, related to the implementation of higher tariffs on the china side in response to tariffs put in place by the united states. if we look at the full year under the inception -- under the

assumption they stay in place, that could be $200 million of headwinds. david: president trump announced that we will not have tariffs on european imports because they have come to terms in various ways on trade. how much relief will that give ford or is that just already baked into your numbers? bob: we had not assumed any headwinds from that. the thing to take away from that is it is very encouraging to see the two parties coming together to work on free and fair trade. we hope that same mind set and cooperation from both sides takes place in terms of the the the naftaof agreement and issues in china we talked about. david: finally. he talked about $11 billion and $7 billion in cash of restructuring charges. in addition, we are expected to get your strategic plan, but that has been delayed.

and you give us a sense of what that restructuring will look like and what it is? bob: one of the things we have been talking about, and we do so again today in the earnings call we have a bit later, is that we are on a really substantial redirecting -- redesign of our business allocating capital to areas we could be very successful and have demonstrated the ability to do so already. they be new areas of opportunity as well. then, away from the parts of business that traditionally we continue to invest in over and over again, but never get the returns we need. that will result in restructuring charges over the next three to five years which we have identified as being up to $11 billion. we not providing specifics, but he gives you a couple of things to look at. we're a strong point of view of what we will do, and we have a sense of what the implications of that will be in terms of the impact relative to restructuring. david: when will we hear from

the ceo on what the plans are exactly? bob: we will tell you what we will do when and as we make the announcements. this will cover a lot of our operations around the world. there are a lot of constituencies involved and it is a complex thing to do as we did in north america a decade ago. in that case, as we could announce things and manage the impact on all of the constituencies, we would do so. that is the same playbook we will follow for this redesign effort that is underway now. david: bob, thank you so much. that is bob shank cfo for ford. scarlet: thank you to david westin. want to get- if you in on the earnings action, etf's are well in play. fund, thisrust index etfstays in his lane -- stays in its lane.

to qualify, they have to have half $1 billion. larger companies get bigger waiting, but the fair gains are capped to prevent too high a concentration. the carmakers represent the u.s., japan, and germany. among more than 30 names in the garage, korea, gm, honda, and tesla. this is $18 million in assets and carries 70 basis points. withs been a rough road returns trailing the s&p 500 at a wide margin. cars get a green light in the traffic light system of bloomberg fourth alternative weighting scheme. -- for its alternative weighting scheme. julie: we turn to qualcomm and the decision to pull the plug on their latest deal. this is bloomberg. ♪

julie: "what'd you miss?" ian king has just been speaking with the ceo of qualcomm. he spoke about the decision to give up on the deal with nx the -- nxt. there were probably bigger forces at play than just them. we are stillwe are still fans ol and the logic behind the deal. interesting their hedging on that. it has been 20 months since qualcomm first agreed to buy nxp. perhaps they are happy with the whole situation. scarlet: you see the way shares have reacted. in addition to the fact that qualcomm announced it would buy back a lot of its shares. investors are glad to be putting this behind them. doing wellr player after hours is amd which was hot

for while and it is up near 8% after reported earnings. they are also seeing sympathy rally from nvidia. a pretty good evening for some of these well-known chip stocks. julie: it's interesting because semiconductors, the semiconductor index has been all over the place this year and very volatile. it will be interesting as we start to get some of the earnings tomorrow, will we see significant recovery? joe: if there is one area of tech to be expected in the crosshairs, it is qualcomm and nxp with semiconductors. thatet: and particularly the u.s. and china are the crucial part of the supply chain. down -- nxp is also off 3% in trading. joe: coming up, what you need to know for tomorrow's trading day.

this is bloomberg. ♪ ♪

scarlet: "what'd you miss?" a very busy couple of hours. u.s. stocks closing near the

session highs and the european commission and the u.s. would and out some kind of deal they are working towards. they said they were work toward zero tariffs on industrial goods. julie: and facebook is out with numbers that missed estimates. the shares are down 8%. joe: no rebound yet. that is interesting. julie: and mattel cutting jobs and reporting a larger loss than estimated. are not nearlygs over, because tomorrow amazon is reporting second-quarter results after the bell. joe: i think people will be watching that. and ecb announcing their rate decision and everything. julie: and don't miss talks to renegotiate the free trading agreement restarting in washington. this is bloomberg. ♪

emily: i am emily chang in san francisco. this is "bloomberg technology." facebook reported weaker than expected revenue and monthly and daily active users in its second-quarter results. plus, on the heel of facebook's results, investors gave a thumbs down to several tech peers in market trading. qualcomm terminates its deal to acquire nxp