backdrop on the economy looks like. scarlet: irrespective of the backdrop of the economy today, we have gains for the u.s. equity market. the dow adding 417 points. the s&p gaining 1.5%. all 11 groups in the green. if you split it up into two dozen industry groups, only banks, food and staples, and -- telecom services that are not doing as well. caroline: it is interesting earnings are managing to dictate where we move on top of the fed put. withave amd which came out the leader. apple is up there, boeing is up there. on the downside, juniper networks. are one of the things that is really striking is the extreme moves in both directions. we have seen these big whips, whether caterpillar was one of the most remarkable ones, nvidia, and some of the names today. boeing, absolutely sorry. in both directions, very violent market action. scarlet: speaking of big swings,

we have seen big swings in shares of facebook over the last three months. to bring into the conversation, david kirkpatrick. he is the author of the book "the facebook affect." if you look at how facebook shares have moved since the third quarter results, they have moved sideways. they have gone down to as low as 124, as high as 151. pretty much back to where they started. has the picture for facebook changed much? has there been a user reform -- revolt? david: i don't think there has been a user revolt. to they -- to a degree, there has been a significant behavioral shift away from core product toward ancillary product. instagram is booming. facebook's core product is actually growing rapidly in developing countries. not in developed countries. from a user performance point of

view, facebook is doing ok. the question surrounding facebook is much more to do with macro policy questions and how they are handling abuse on their platform, how much they are spending too remediated. joe: what are you most interested in hearing from facebook? paul: on the revenue side, monetization. outside of facebook.com. we know is david mentioned -- cominge: microsoft is out. this is the most valuable company out there on the s&p 500. we have openings. $32.5 billion. dollar. that is just slightly shy but very slightly. cloud revenue at coming at $1 billion. ads, gaming,uting, almost $13 billion. slightly shy. productivity revenue, 10 billion. we will look forward to the forecast. that is what will be important. it looks like it is there. scarlet: part of that is because

over the last couple of months, we have been hearing from investors that microsoft was a safe haven tech name. software spending is something they could count on while we did not necessarily see that for the growth parts of the tech sector. joe: microsoft up 3.3%. context, this gets us back to where we were around at 11:00 this morning. caroline: many were wondering what on the back of intel and nvidia, microsoft was going to show us in terms of spending. whether it is inventor he or people are calling off on that spending. are really going to pay attention to the big cloud players. the amazon of the world. microsoft's of the world. on the rundown of this quarter's numbers and i came in better than suspected. i suspect microsoft will be very bullish about their prospects. continue to give chipmakers another vendor -- and vendors a sense of the cloud

where they will see significant growth and investment. have resultslso out of qualcomm. it has got a lot of legal issues. that tends to way down on the stock. overwhelm investors rather than the results. $1.20.uarter adjusted, higher than the assessment of $1.09. outlook here for second-quarter revenue is anywhere from 4.4 billion to five point 2 billion. analysts were looking for 4.8 3 billion. that is certainly a number that investors are applauding. i suppose we are looking here at a reaction to that beat, to the first quarter of 120 versus 109. how much can we read into qualcomm? because so many legal issues. david: when you look at the want -- you, you can have some reason to their core business. eventually, the litigation issues with apple will be

resolved. a lot of investors believe that is a 2019 event. and qualcomm is in a relatively good position as it relates to disagreements with apple. at some point, investors -- they are looking past that. this was a decent quarter. caroline: i want to get your take on how much of a look at fundamentals of facebook and look at the privacy. it was front and center with facebook today. dailyt: just reported active users, 1.5 2 billion higher than the consensus estimate of 1.1 5 billion. monthly active users, 3 billion. add revenue for the fourth quarter was $16.64 billion. as for the bottom line number, a fourth quarter, higher than what analysts were looking for. $2.18. revenue, $6.91 billion. beats the analyst estimate. 16.3 $9 billion. the daily active users, higher. monthly active users, in line.

that is good enough for a pop in the stocks. caroline: this is a company, despite the controversy, bringing in more than 26% revenue growth. people are not shying away from the business. david: at extraordinary margins to boot. facebook is an enormously successful business. no question about it. one of the reasons i think many of us have been more disturbed than they might have been about some of the problems with governance on the platform is that they have been raking in so much profit during a period and they seem to be overlooking a lot of the real problem. on the other hand, you can't fault these people for not having built a great business. and it comes to advertising, they love to talk about this but it is true. small businesses have no better place to advertise anywhere in the world. it is going to continue to be a money machine, no matter how much of that money they may end up having to spend on remediating harm. i think the big issue for

investors in the aftermarket hours moves up to 160 is the revenue numbers. as david mentioned, there are social issues surrounding this company's business model. will they ever impact advertisers? and users, and then advertisers? the numbers suggest that the business model is holding up despite user concerns and advertiser concerns on privacy. caroline: talking of companies that my use facebook to advertise avon products, is cutting 10% of its global headcount. they are looking to save $100 million -- they will be taking charges of $100 million pretax. this is what they call an operation efficiency drive and reduction in portfolio complexity. we will look at how avon will perform. are seeing a really nice rally still in facebook. how much does that spill through to the bought -- to the broader market?

i think it sets the tone to the late year selloff. it shows markets are at least relieved by what they are seeing. yana: i think it is a perfect example of trying to bucket idiosyncratic issues related to facebook, is related to security issues. also to where you are in terms of the lifecycle of the industry. digital advertising is a percentage of total ad market remains a smaller portion of the overall pie. you're talking about is $700 billion market. facebook is showcasing the fact that they can continue to grow to their top line in excess of 20%. not a lot of companies can do that. but the issues you spoke of earlier have not been resolved. they will need to continue to spend a lot of money to find the engineers and ensure that they can police their networks in such a way that would be ok as

it relates to regulatory bodies that oversee them. i think the selloff was there were parts of it that were very idiosyncratic, related to facebook. there were parts that were sentiment driven, related to overall tech space. it is a great example that not all things are created equal. now you are seeing that disparity take form. caroline: i want to look at the payment space. we are expecting paypal, coming out with numbers. $1.30 in terms of their first-quarter earnings per share. that is more than the 16% growth analysts were looking for. they are seeing payments volume growth of 11%. strong dollar, up 7%. this is a company focusing on growth with contact with payment. looks as though it is a be for visa. -- a beat for visa. that is seen as a bellwether. the global economy and spending, bad bounce nicely as the end of december to see that reaction. scarlet: i am looking at the

facebook results going through it more carefully. tesla has just come out. that is interesting. usually you do not know when it will come out. fourth quarter, $1.93. the estimate was for $2.14. it looks like a miss for the bottom line. tesla returned -- posted a profit last quarter. into the ideah that it was on a sustainable path it half. -- profit back. caroline: warning analysts that this will be tough. joe: it is important to realize the flip, a few months ago we were talking about, can they produce enough? quickly the story changed too, is there enough demand for the model s or whatever to be the iphone of cars? for the teslauge world. scarlet: have we hit peak tech? if you look at tesla as a tech company and its products are

it is obviously relying on this new technology to drive demand for its vehicles. have we hit peak tech? yana: i think you have hit peak certain areas. but tesla is different from other larger cap tech companies don't have the same issues that tesla does nothing against tesla. i think it is very company pacific -- company specific. an industry specific issues to when you look at big pictures, we a lot -- we talk about that, it is less then 2% as it relates to the overall cars being made in the u.s. we are just starting. there are other ways to play it outside of tesla. you can play it through hardware, software. technology today, and we have done a lot of orca fat, it is not just related to technology. there are companies that find

their way within an industrial consumer and other pockets of the market which is important for investors to remember. joe: is tesla a company you think about? david: oh, yeah. i think tesla is superbly ambitious. forspect them tremendously that. i respect elon musk for having started tesla out of his concern about climate change. i think the fundamental insight was a right one. the financing of the company is the question. it is so expensive to get into vehicles. onarly he stumbled on that, repeated occasions. i would be long-term bullish on tesla as a company. i'm not talking valuation. but their product is really well-respected. and they are in the right place for the market. we are going to electric vehicles. joe: the stocks turned green. >> i that is some stable growth markets #'s. -- growth of margins.

as i like to quote someone from bloomberg intelligence, technologies easy, but manufacturing is hard. when you have to go to a look plans around the world to make a volume, that is hard. scarlet: there is so much noise around tesla. the bulls and the bears are active and in your face all the time that you lose sight of the fundamentals of the business because you get distracted by the noise. no company gets more press respectively. it gets way more than its share it is ation because gambling situation for many people. i would reiterate, what they have tried to do as a business is brilliant. and i am pleased that they still exist. but sometimes you wonder if they will continue to. caroline: let's return to facebook. this is a company trying to shift itself to a certain extent. saying our content -- our

immunity growth scare we fundamentally changed how we run our company to focus on the biggest social issues. we are building more inspiring ways for people to connect. when you have got issues such as the way in which they are developing apps, testing, using teenagers forng that, how much does that really show that they have fundamentally changed the way they focus on it? david: that is a really good question. the news today that they were violating apple's rules. by the way that they were testing their stuff with teenagers. i do not accept that they have fundamentally changed the way they run the company. that is a false statement. but, it is a hard challenge that i do not think that they will change it overnight. everyone likes to gloss over big issues. scarlet: as we look at tesla shares, some other headlines in addition to the gross margin headline that paul mentioned, tesla targeting 25% growth margin. at the some -- at some point in

2019. it sees positive free cash flow in every quarter beyond the first quarter. caroline: delivery looking good as well. isn't it almost unbelievable that we could have a tesla number and no after-hours move? >> flipped around $20. joe: pretty muted. caroline: just to finish off what has been a busy session, we have paypal coming out. four point -- $4.23 billion. earnings per share, 69 cents. that is more than 21% revenue growth that the market was expecting. we are likely to see significant the shares have really performed well. up 10% in 2019. they rose 14% last year. while outperforming the market. looks as though paypal's 2019 guidance is affirmed at the preliminary outlook which have been basically for continued growth in terms of double-digit.

we are seeing a market that anticipate 17% growth. bakedt: perhaps that was in somewhat because we see paypal shares off by greater than 3%. hear these results, does it change how you approach your investing rayna? -- right now? yana: it does. i think what is interesting based on what you just read post market reaction is the fact that over the past couple of months, we have had a significant reset and expectations. this is a game of relative. it is not about the number, whether it is better or worse. over the past three months, we need to highlight the fact that the overall earnings expectations for the broader market have come in over 400 basis points. now the expectations for earnings growth this year, 6%. which is dwarfed by what we are going to have the anniversary of 2018. they are are still these

dislocations in the market. one area of the market that is struggling year to date that we think has the growth levels and the valuations is health care space. many of the industries within having positive earnings revisions and valuation support with the growth transition we are seeking out. that is one area of the market we are particularly intrigued by. we think there is more to that story in 2019 and beyond. yana, thank you for joining us to we want to thank davidweeney and kirkpatrick, author of "the facebook effect." that does it for the closing bell and for me. romaine bostick is stepping in for "what'd you miss?" we will be talking to elizabeth warren, and presidential hopeful and her prescription for income inequality. this is bloomberg. ♪ this is bloomberg. ♪

caroline: we are live from bloomberg world headquarters in new york. i'm caroline hyde. so many earnings to begetting you through. let's look at the after-hours movements. facebook soaring up a percentage points. wallue and profit beating street estimates coming in at $16.9 billion. microsoft, lackluster. down 2%. this is the most valuable the s&pout there on 500. they meet in terms of their revenue, $32.5 billion. maybe the market wanted more second-quarter earnings per share. of thethe x -- shy

expectations. i'll come up 2.5%. up 2.5%.mm slightly shy of estimates. it's as though it is a really factor we got concerns of intel, nvidia, earnings per share, $1.20. tesla off by 2.5%. plenty of numbers coming. overall, they are cutting to resist -- to reduce cost of the 400 million annually. let's return to facebook, the biggest mover after-hours. get the expertise from san francisco, from emily chang who comes from facebook headquarters in menlo park. what do you make of the numbers? across thes a beat board. it looks like the scandals, bad press, the perceived distrust in facebook is not affected the company's growth. profit up 60% year-over-year. i was curious to see the user numbers in north america because if you will remember, a year

ago, this same quarter was the first time we saw daily active users decline in north america. they have increased in north america. they are still flat when it comes to monthly active users but europe monthly and daily active users have gone back up. if anything, this shows us that the threat of regulation is not going to have a huge impact on facebook's business. they have managed to increase ad all of these controversies. it's still a lot of important questions to be asking to facebook executive, i will be sitting down with sheryl sandberg, lots of important questions to ask her. the business still looks healthy. joe: has facebook made progress on changing its internal culture? ofgot greeted to another set scandals. obviously not affecting the business too much right now. couldtting that aside, it be a regulatory threat up some point and has to be of concern to investors. has there been changed? -- change? up to facebook woke

another controversy. techcrunch reported facebook had a research app that it was paying users to collect their data for, including many teenagers. apple was not happy about this. actually revoked facebook's enterprise certificate which means at this moment, internally, facebook employees can't use any of their internal apps. sources are telling us that employees are panicking inside the company. they can't do their work. facebook has said they are trying to negotiate with apple on this issue. for a lot of people, this goes back to the essence of facebook problems. the lack of transparency. the lack of trust. another apology. this is not what users want to hear. caroline: emily, fantastic. so much to be asking with your sit down with the chief operating officer of the business. down with sheryl sandberg at six ago p.m. eastern, don't miss it.

romaine: hitting the pause button, the federal reserve decided to keep interest rates unchanged. calling for further gradual increases. chairman powell reiterated his pledge for patients. we are facing a contradictory picture of strong u.s. macroeconomic performance. alongside growing evidence across. such times, common sense rick scott management suggests awaiting greater clarity. h that has served policymakers well. romaine: let's bring in the head and chief u.s. economist, carl riccadonna in new york. i want to start with you, mark. when you saw the reaction, particularly in the rates market, and some of the short and treasuries, what does that tell you about the general sentiment that investors now have about the trajectory of the fed's not only rate path, but

what they will do with the balance sheet? carl: the fed sounded dovish -- mark: the fed sounded dovish on the rate. on short-term interest rates, chair powell, we were surprised at the language went as far as it did in terms of are moving any future reference to a potential rate hike. the further gradual increases language was struck. the fed added language suggesting they would be patient. and also removed the balance of risk assessment probably because they see this risk as skewing to the downside. very dovish on that front of the result -- very dovish on that front. likelyink the fed will be on hold. we also got dovish surprises on the balance sheet. the fed a released an implementation notes suggesting they would stick with a large balance sheet which was not much of a surprise. but did add language around the flexibility of the balance sheet. the press conference, powell noted the fed's thinking about

the demand for reserve from the banking community has evolved such that the fed knows they will need to have a bigger balance sheet and also a buffer on top of whatever they perceive true bank reserve demand to be. which argues for risks of an earlier balance sheet unwind. carl, how much of the commentary on the balance sheet was due to a desire to make the ,alance sheet a policy tool versus technical issues that would have happened come up regardless of market volatility in the economy? carl: i think it is more the case of the latter. the fed doesn't want the balance sheet to be an active policy tool. in some future downturn, they may wish that they will move back in that direction. but they are really asking philosophical questions about what happens when they get to the end of the unwind. was,ously, the sentiment let it unwind until you smell

smoke and then note you have gone far enough. -- and then you know you have gone far enough. stop sooner rather than later. they did not answer a lot of questions. they are sticking with the floor for balance sheet management. they have not yet reached conclusions about the maturity profile, the risk profile, what to do with mortgages, etc.. it is coming soon, according to jay powell. caroline: we have got the fed saying that they see continued growing strongly in terms of spending economic activity, jobs gains are stronger each of they gone -- should they have gone as far as they did? the fed is clearly taking a risk management and very prudent stance of policy right now. the fed is saying that they do not know what the right next move will be. they decided to hold tight and signal patients. caroline: great to get your analysis. chief u.s. economist of

bloomberg economics, carl riccadonna. coming up, elizabeth warren. this is bloomberg. ♪

comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. m i am mark crumpton with first

word news. it deep-freeze cribbing the midwest spent temperatures -- gripping the midwest sent temperatures plunging today. the postal service took the rare step of suspending mail delivery across much of the region. in fargo, north dakota, temperatures dipped to 31 degrees below zero, six degrees colder than the south pole. jeremy opposition leader corbyn described talks with theresa may as serious and exploratory. to conductbeen wary

cross party talks. he reversed his position because parliament, in his words, voted emphatically to reject leaving the european union without a deal. to thented to explain prime minister, which i did, that i wanted no deal taken off the table, which is why i did not meet her until today and i was pleased that the house voted yesterday to take it off the table. wesked her assurance that were not back into the territory of threatening no deal as a way of getting support for her failed deal. mark: britain is due to leave the european union on march 29. leaders were not pleased with the belated efforts to negotiate brexit changes. headu parliament's negotiator said the confusion and indecisiveness cannot continue. looking at it and i

can't understand that what started as a catfight inside the conservative party is today and existential party for britain. -- is today and existential problem for britain. hill, houseitol democrats introduced the pair check -- the paycheck fairness act. it coincided with the 10th anniversary of former president obama's signing of the original fair pay act of 2009. recognize astly women that the pay gap is an injustice that persists through thatcy and an injustice persists to the present day. the only way we can combat that

is through organizing our personal action ourselves. quoting here, equal pay for equal work is an american value and it is time we have an equal reality. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. romaine: a flurry of earnings coming with us. let's start with microsoft. revenue actually came in slightly below with estimates -- slightly below estimates. the company saying they plan to see increased spending and the company continues to see good clout demand. aypal falling, giving

forecast that came in below forecasts. looking at facebook, reported revenues beat wall street estimates. digital advertising powering through at this moment. daily users climbing at 9%. concernsalleviating afterward about china, about nvidia and intel. tesla was flat. cash balance looking good. costs,, they are cutting but they did miss on earnings-per-share. that seems to be somewhat concerning. romaine: a little bit. qualcomm is interesting, because they had that controversy hanging over their heads. that will affect their licensing business. they continue to

coral, but it seems to be a focus on second quarter revenue. the projecting in-line sales for 5g. plenty more to per -- 20 more to discuss on politics. let's get to joe. joe: it is more than one year until the iowa caucus and now, candidates are already lining up. senator elizabeth warren of massachusetts has launched her presidential exploratory committee for president and she joins me now. we want to welcome our bloomberg austin radio audience who is listening. senator warren, thank you very much for joining us. wise, you made the centerpiece of your campaign the idea of a wealth tax. over on people who have $50 million. what is important about that? is it about raising revenue for the government were about

ameliorating inequality? sen. warren: i want to talk about the wealth tax but i want to push back on the centerpiece. the centerpiece is that washington is broken and right now, it works great if you are a billionaire. it works great if you are a giant multinational corporation. it works great for the wealthy and well-connected and it is not working for the rest of america. the question is, why not? it is because those people with a lot of money by a lot of political influence in washington. , they have gone to washington for decades and said, can we just change the rules on this part? just a little bit? just a little bit more? until now we live in an america of 1% of top 1/10 america has as much wealth as

90% of america. is that we with that need those folks to pay a fair share in taxes so we can make investments so that washington works, so that government works to create opportunities for everybody else. joe: so the primary benefit of the tax is making the system work better? it is not about raising revenue? it is not about, as critics would say, punishing the rich? it is -- sen. warren: it is about making democracy work better and the economy work better. i think it is great if you are successful. but part of the deal is you pay back, so the next kid gets a chance to be successful and the kid after that and after that. that is the part that is not working in america today. that is why we have to make some big systemic changes. so when you ask me about the

centerpiece, i'm going to say it actually starts with an anticorruption bill that tries to reduce the influence of money in washington. and from there, we swing into accountable capitalism. you know about this. and into a wealth tax and making the economy work for everyone. interesting to talk about accountable capitalism because i'm sure there are many bloomberg readers and viewers who think of you as a socialist. i'm sure that is what they would think. that being said, at one point, that was mainly seen as a pejorative, but there are more people who identify as such positively. what do you think about that term and what would you say to people within the democratic party that say socialism is a good path forward? in. warren: i believe capitalism. i see the wealth that can be produced, but let's be clear. capitalism without rules is theft.

encouraging companies to build their business models on cheating people, that is not tap it was him. that is not competition in the marketplace. that is not producing consumer surplus. withieve in capitalism serious rules. that means rules were everybody gets a chance to play. joe: speaking of rules. one of the criticisms of a wealth tax is that it would be hard to enforce. people have ways to hide their wealth. it is difficult to measure. they can move wealth internationally. how much would a successful implantation of a wealth tax require local cooperation so that people can't easily shuffle their assets? sen. warren: let's start with the way that this is written says your wealth wherever held. moving it to one of the islands or to switzerland is not going to get you out from the tax. there is no advantage of taking your diamonds or your art

outside of the united states. international scene on taxes is changing dramatically. starting in 2010, it started changing laws so that companies are more cooperative with each other in terms of identifying the assets held within their area. bill hast is this really serious enforcement. we get it. rich people come with their own independent armies of lawyers to figure out how to game the system. they are been doing that for a long time. this says let's be smart about that. we will have a much stepped up audit schedule for these folks. you enforce the law and book. think about the alternative. an we really going to be america that says, it is hard to get the rich to abide by the law, so we are just not going to try to impose rules that we otherwise think are right?

we can enforce them. remember, the kind of money we are talking about, estimate is trillion over.75 the next 10 years. that is money we could spend on childcare, to reduce the student that is a goodn, down payment on a green new deal. joe: i want to ask you about the democratic party. it feels like there is much more enthusiasm to talk about taxes and raising taxes with the confidence you don't hear in the past. also to talk about big spending programs. what is going on and why is it that the democratic party feels more comfortable about taxing and spending, which used to be a criticism of the party? sen. warren: you're saying, why does this party believes that everybody ought to pay a fair share, including the rich? what is this party believes that we need to be making more investment so that all of our

children get opportunities, not just the children of the rich? the answer is that reality is finally catching up with elected officials in washington, at least on the democratic side. this is something america once. people are living this. this is the part i find interesting. when i talk to folks in washington, they're like, taxes, what does this mean? i talk about this with people across the country and they get it. they get how the rules are rigged right now to help the wealthy and the well-connected and they are ready for change. they get it. they may not know the numbers, but they get it. .1%, do you know how much they will pay in taxes? 3.2% of their net wealth. the 99%, how much will they pay? 7.2%. doubler words, more than

what the richest americans are paying. folks across this country get it and they want to see change. joe: let's shift gears to health care, which has been a huge topic. is there room for private health insurance in your vision of the ideal american health care system? sen. warren: let's start with the battle we are having now and talk about the things we need to be doing. i don't want to lose sight. it is good to talk about our overall goal and here is our goal, this is what distinguishes democrats from republicans. republicans believe -- democrats believe basic health care is a human rights. our obligation is to make sure everybody gets coverage at the lowest possible cost to all of us. what does that mean? right now, it means fighting the republicans who are trying to sabotage the affordable care act. we have a lawsuit going on in texas, where the republicans are trying to do with they couldn't do with a vote and that is

trying to repeal the affordable care act. to make it ok to discriminate against people with pre-existing conditions. to cut off access to health care for millions of americans. job number one is to defend the affordable care act. job number two is to make changes where we need them now. changes to hold insurance companies accountable when they are trying to cheat and scam people. changes in what is happening with drugs, prescription drugs. we need to lower the cost of prescription drugs. one in four americans say they can't take drugs prescribed to them because they can't afford them. i have a proposal for generic drugs, which are 90% of all prescriptions people fill, to be able to bring those costs down to a nominal cost. the third, how do we get universal coverage? medicare for all. lots of pads for how to do that. we know where we are aiming and that is every american has health care at a price they can

afford. and the overall costs of the system are as low as possible. joe: right now, your vision for medicare girl, -- medicare for all, would be only public option or would include private insurance? sen. warren: now, there are multiple bills on the floor. i signed on to medicare for all and another one that gives an option for buying into medicaid. there are different ways we can get there, but the key has to be always keep the center of the bullseye in mind and that is affordable health care for every american. to: i want to go back something you said about revenues raised from the wealth tax and how that could help childcare and a green new deal. there is a growing belief and a growing movement within the thecratic party that concept of being restricted by having to pay for it in some way

doesn't necessarily make sense. we shouldn't be afraid of deficits and the debt has gone up and hasn't had negative ramifications. do you share this view that we don't have to be scared of deficit spending? not giving has to be paid for dollar for dollar? watch then: i republicans. to republicans say we want have a war but not raise taxes to pay for it. who cares about the national debt? for they say we will give away $1.9 trillion, don't have to worry about the national debt. it is only when we are talking about the things that affect hard-working families when suddenly the republicans seem to get interested in the debt. even under the current monetary theory, there comes a point where debt matters. is that wecare about

need to rethink our system in a thethat genuinely is about investments that pay off over time. government a federal that treats if you spend $10 islion on a building as it the same as if you took $10 million in the street and earned it. at the end of the day, you have an asset worth $10 million. we need to think about educating our children. treating it as an expense to educate the next generation, it sense from makes no a values perspective, it makes no sense from an economic perspective. we know that the g.i. bill paid off over time. who got anr the gis education under the proposal, but also for the entire economy. so i believe very strongly that we have got to shift how we spend money in washington.

we need to make those expenditures more in line with our values. it should be less about billionaires getting to hang on zillionlast 2% of their dollars and more about high-quality child care for all of our kids for reducing the student loan debt burden so people have chances to buy a home or start a business. joe: something that interested me in your video on your website is you specifically pointed out that the jury reading household -- his black families. you areking about how connecting progressive economic message with issues of racial justice. sen. warren: this has been an issue i have worked on pretty much my whole life. it has been, what is happening to american families? why is it that people work harder and harder and yet, for millions, the road keeps getting

rockier? african-americans, it is rockier and steeper yet. the data shows this over and over. writing about this, talking about this for a long time. how these two intersect. let me give you one piece of this. homeownership is the number one way that middle-class families build wealth. for a long time, america subsidize homeownership. for white families. but they redlined black families out of things. affirmatively discriminated against black families having an opportunity to build up that family wealth. one of the things we see is a cumulative effect of that. today, people across this country are struggling with housing costs. black and white.

but the path for african-americans is tougher, because of generational discrimination. generation by generation they keep starting at a lower point and face a bigger gap and bigger discrimination. this is the kind of thing as a nation we have a responsibility to stop, to knowledge it, and to say we are prepared to take steps to fight back. joe: quick last question, turning to foreign policy. president warren, what would you be doing now in venezuela? sen. warren: in venezuela, the first thing we start with is maduro is a dictator, he has caused terrible harm to his own people. but, we have to be very careful about wrestling sabres on military intervention. those sabrestle unless you are sure you can back it up. you need to think about whether

that is the kind of path we want to follow in south america. i believe right now that our principal effort should go toward supporting the venezuelan people and not imposing policies that put even greater injury on them. joe: senator elizabeth warren of massachusetts. i want to thank you. thank you to our listeners from bloomberg's boston radio as well. this is bloomberg. ♪

caroline: time for smart charts. let's get straight to abigail. joining me today is the chief market technician. we're in the earnings season that turns out to be better than feared. facebook rallying in a big way. let's look at your chart and what you think about what it says. frank: facebook is up 7%.

the average move is 7%. we will probably have another gap opening. that is the interesting part. differentas had 18 gap openings at least 2%. some of them are bigger of course, some we can't see, but to me, that shows there is a disconnect between investors and what the company is saying. investors think one thing, the company thinks the other. what else needs to change is momentum needs to finally get positive. positivetime we had a was july of last year. a little different this time. time, withmaybe this the reaction, we will get that. this potential bottoming neartion, we get to above 165. we need to see this happen again

and again. abigail: that -- that is a really interesting gap. it does tell us investors are surprised or maybe going the wrong away. let's check out microsoft. those shares have been wild. the last time i saw down about 2%. microsoft was back here in november or december. it was like a safe haven tech stock. it was really insulated and at the same time, it started to underperform its software etf on the relative line. from that point, 60 of the 90 components within the etf did better than microsoft. we see here, we start with a series of low highs. i think we also can look for other stocks. abigail: that is such an interesting point, because the expectations for high going into this quarter and they didn't put up enough.

let's take a look at this interesting point. i think this gives us a good gauge on risk for investors. indicationus a good of where the market turns. we see the s&p 500 trying to make the bottom back in april. it caused a divergence and led to a breakout in may. we saw the same things happen with the s&p 500. time, we had lower highs , and led to big selloffs. i would argue that not too much of it diverges from with the s&p 500 is doing. how this results is going to be key. we could see the rest of the market follow suit. abigail: they will be interesting to see if it goes to the upside or the downside. thanks for taking the time to talk about microsoft.

a mixed bag. caroline, back to you. caroline: thank you, abigail. that is all for "what'd you miss?." joe: bloomberg technology is up next. have a great evening. this is bloomberg. ♪

emily: i am emily chang. this is "bloomberg technology." coming up in the next hour, scandals and controversies last year have not affected his books bottom line. as the earnings came in below expectations, but the company expects to deliver more than 400,000 cars in 2019.