performance in terms of share price. laggard. the volumes of 18%. after the may the first shot china is closed. japan is closed. romaine: you are seeing a little more selectively people buying. even though headline indices are in the red, a lot of indices are higher. joe: it feels with that pick up in volume, the fed created a little bit of a new story. we don't want to over-dramatize it. we have a job report tomorrow, which will be potentially a significant mover of the macro market. caroline: let's dive deeper into the data. [laughter] mike, what are you watching? have reallyities fallen lately. obviously oil, 3% drop today

gaining a lot of attention, but it has been a soft spot for pretty much every commodity out. all 24lyst pointed out, components of the bloomberg commodities index have dropped in the last three weeks, and that index itself has dropped 10%. the lowest intraday level since january. there's an assortment of specific reasons for the decline. but one of the most notable declines is copper. for better or worse, copper is often looked at as an economic indicator. copper is coming off some supply constraints that drove prices higher earlier in the year, but analysts in some places are really pointing at some concerns about economic growth, taylor, especially after the weak reports in manufacturing out of europe and asia recently. taylor: thank you. i will steal a page from joe weisenthal's playbook and look

at productivity. g tv , as we have talked about, productivity rising 3.6%, the highest in four years. this signals that businesses are finally increasing capital investment, to offset rising labor costs we have seen, which has been driving the increase in productivity according to bloomberg economics. more importantly, how this profits to -- translates to profit margins, baron berg says all the strong productivity will suppress unit labor cost growth. the aggregate s&p 500 profit margins by the highest they have been in decades. abigail: romaine was mentioning small cap indexes outperformed today. let's look at a one year chart from oppenheimer. a couple interesting points. the last all-time highs, in 2018. still 9% below that all-time high, while the other major

indices put in all-time highs. unless theote, russell 2000 claims about 1600, he needs to see that to confirm the rally we've had for large-cap stocks. so far, the russell 2000 unable to get above that level of resistance. to see whether the small rally today can build to something bigger. romaine: thank you, abigail and everyone on our markets team. breaking news on the ipo, beyond meat, the biggest ipo since the 2008 financial crisis. , now with a market cap of about $3.8 billion, higher than sanders and farms and a few others. joe: joe: incredible debut. this was an upside already, but pretty clear they could have done so more. caroline: people pointing out, this is a company that needed some cash, maybe could have done

with more cash instead of such a rally in the share price on the first day of trading. we will speak with the ceo after the bell. sticking with us, quincy crosby of prudential. quincy, we talked about the element of ipo's here. what about sectors we are seeing? today was a story of energy underperforming. will that change as the mood changes post-fed, looking toward other data points and trade deals? quincy: one thing that will be tosistent, companies trying become more productive, bring down costs. enterprise software will be forever, almost because that is what companies do. the good news, we have seen a pickup in some data, in some corporate spending, and that is good news. for bringing focus down taxes last year for corporate america. witht has paused,

uncertainty surrounding the trade deal, surrounding the government shutdown. it's beginning to pick up, and most of that will be focused on technology. that is where companies are spending money. joe: how much of a connection is there between this extraordinary secular trend of companies spending money on software, the software boom, cloud computing and so on, and some of the product data? >> i think there is definitely some. even i see it showing up more interestingly is in the market. we agree america is one of the best-performing economies out there in a slow growth world. but look at u.s. stocks relative to the rest of the world. the reason we have outperformed this year is because of the more internationally -- that strikes you as a little odd. a lot of's point, these international names are involved in the more secular growth business opportunities. so even though they aren't operating in the best place,

they are operating in the right place, and that is why it may be even amid dollar strength of the international sales companies have performed. romaine: do you think that outperformance will continue, quincy, if we get a rise in the dollar? quincy: that's the difficulty. you are already seeing pressure in emerging markets. if the dollar gallops higher, right now it has been inching little by little, but if we start to see an important move higher, it will put pressure on the large-cap exporters, absolutely. they are also suffering because demand has been down. going order to do well, you need demand on one side, and competitiveness and a stronger u.s. dollar can weigh at that. caroline: talking internationally, today we had a bit of push and pull from the headlines from china and the u.s. trade deal, the south korean markets doing pretty well overnight because they were hopeful there would be a trade deal, something that seemed to get sucked away. if you were talking about the

trade deal, is it already priced in? luke: right now, we saw already yesterday that we are near or around all-time highs. a lack of incremental dovishness was enough to really kind of tip the scales a little. we are in an environment where any trade headlines, especially itse to the negative side, is how you judge enthusiasm right now. what do you do to balance it out? we talk about these cloud companies and software companies doing really well. but if you lean too much into those, you get destroyed in the q4's of 2018, which will come every once in a while where the names everyone is crowding into get destroyed. what is the overall? quincy: the classic strategy, which worked in 2018 toward the end, to have defensive names on

one side. her it's utilities, which is a surrogate, because if bid.s go down, bonds get a you are seeing consumer staples getting bid, even though most people expect the number tomorrow for jobs will be strong, which would be a catalyst for consumer discretionary. i think you will see going into those consumer staples. it gives you a nice hedge. that's what you are looking for, that hedge. if things really do slow down, and things hget not just overbought, but mainly overvalued too quickly, a headline can come along and move it down. romaine: great -- caroline: great insight. interesting to talk about consumer staples, talking so much about the vegan burger, but shake shack still doing well.

first quarter like to like sales climbing more than expected, 3.6% versus estimated 0.8%. ts adjusted earnings per share is down from the previous quarter by about 13%, but in line where analysts want to see it. joe: imagine if they also sold a vegan burger. maybe they do. kawa. krosby, luke that does it for the closing bell. ♪

♪ ♪ live from bloomberg

world headquarters in new york, i am caroline hyde. romaine: i am romaine bostick. joe: i am joe weisenthal. caroline: it seems the fed didn't ease quite like the market wanted. joe: the question is, what'd you miss? caroline: does inflation tell the full story? fire up the grill. inond meet -- meat soars its debut, but can it satisfy investor appetites? and off to the races, the triple crown kicking off with the kentucky derby next weekend. this hour.ts later romaine: a quick check on some notable earnings movers after the bell. the company reporting the growth margins expanded a bit, beating on first quarter net sales and eps. caroline: is this the best

stock? joe: if you look at a chart, compared to apple and netflix, they are these little straight lines. caroline: phenomenal. meanwhile, shake shack doing pretty well. clearly the demand is still there for beef. arista: they sell -- networks, they sell a lot of cloud equipment. down about 60%, the biggest mover after hours right now after what looks like a pretty big mess on their revenue forecast. chair powellth, explained that the downward pressure on inflation is merely transitory. >> core inflation fell. we expect that some transitory factors are at work. we have reason to believe some

or all of the factors may be transitory or idiosyncratic. >> there is good reason to believe that these are particularly influenced by some transitory factors. -- our baseline view remains that with strong job market, inflation will return to 2% over time. joe: joining us for more on this, senior bloomberg economist. the debate continues today. the transitory factors, people by surprise, but we are hearing questions over whether that can legitimately describe the downward pressure on inflation. where do you stand? >> i think it is a little transitory. i agree with chair powell's assessment. indeed, the fundamentals are there for inflation to be cut. wages are there to push services

prices higher. vacancy rates for rental properties are very low, which will push housing inflation higher, and in turn will push core inflation higher as well. less appreciation in the dollar could actually help with goods. i think it will be a combination of factors this year that will push inflation a little higher, and indeed what he is saying about transitory is true. so from your perspective, the fact the market is not pricing in a rate cut, you think we will see rate hikes? >> we expect one rate hike this year. that will depend a lot on inflation. pickup ine some inflationary pressure by the end of the year, and that will push the fed. romaine: we got a productivity number.

there was concern over whether it was a one-off deal, but it pressure is some leading to productivity. >> year-over-year numbers are looking better than they were a couple years ago. but definitely, again the one-off factor here in the first quarter. productivity is a ratio, right? hours.on the bottom, output was artificially boosted by the same factors boosting gdp growth. artificiallyor was low probably because of the government shutdown, which affected a lot of self employed workers. wasrowth in hours artificially low. if you take this into account, productivity growth was probably not as great. joe: i want to go back to

inflation. obviously outside of the last few months, the last few quarters, the story of inflation undershooting defense has been one of the key stories post-crisi. -- crisis. i know that powell insisted the 2% target was, maybe let it run for a while. does saying there is transitory weakness undermine the other message that they would be willing to let it run hot for a while, for does it say that in the end they will still get nervous every time? are the central they willnd perhaps move if it gets up to, 4, 5, they will get nervous. but we probably won't learn much more about their symmetrical targeting and things like that, the way they look at it, until the conference in june that they are holding, and they will

particularly address this issue and we will learn a lot. yelena, always good to get your perspective. let's continue the conversation, with the impact of artificial intelligence on technology. joining us is the ceo of a firm backed by goldman sacha. -- sachs. how much do you think that productivity is being hampered at the moment by technology? howard: we see it as a huge gain in terms of productivity, but also effectiveness. so it is not simply being more efficient. but having better conversations. we really decode human conversation to look at what is effective and what is not, and use artificial intelligence to help train and maximize reps'

performance. romaine: when we talk about the future of artificial intelligence, most people go overboard and envision this land of robots. how much human involvement still has to be part of this to make it effective? howard: a lot. the simple answer is a ton. what we have done, we take hundreds of moments in conversations and -- hundreds of millions of conversations and decode those, and use managers who has part of their work evaluate the algorithms. as part, of their normal process they are training the machines. there is a lot of human element to it. that is how you actually get artificial intelligence. joe: there is obviously this ongoing debate about whether a.i., robots, automation will destroy jobs. mcdonald's,osks in but the other day there was a kiosk with a "help wanted" sign

on it that i saw. [laughter] in terms of clients and customers, what is the impact on them? howard: it is massive. by using our technology, they are able to perform better, quite a bit better. so by providing them information, providing them insight into how they are performing, then giving them coaching powered by the artificial intelligence, we see them maximizing the results. certain tasks are mundane and can be automated away, the artificial intelligence helps surface learning moments entering the reps to be more effective. we don't love having customer support on the phone or a sales rep on the phone. we help maximize their performance and be better at connecting with individuals. romaine: how -- caroline: howard, are people losing jobs at companies you are helping with, or are they hiring more people, scaling better? howard: listen, there's no doubt

some people won't work out in the workforce. but what we are seeing, we are seeing lower-performers perform better with the help of artificial intelligence, really helping them maximize their performance, and it is making a huge difference. romaine: what industries do you think will be most receptive to this type of technology? howard: we see industries like high-tech, health care, fin-te ch, any area where a human is really involved both in sales and customer support. when i want to talk to a company, i want a human being, and i want to interact with somebody who understands what i need and is there to help me. that human experience can't be done with the machine. joe: we hear about, everyone sees it stories, half of all jobs could be automated. is this the kind of thing where it is, like, regardless of the impact on labor, where it is more like a frog in boiling water? one day we will look around and see the technology everywhere? the way people see it, one day it will get smart and it is just

here. but is it going to be more subtle, ongoing than perhaps we realize? howard: i think it is more subtle and ongoing. it is a process. look, human beings are good at a lot, and we have the ability to have emotions, to have the ability to reason. machines can't do that yet. they don't have the ability to connect, build rapport yet. and they don't have the ability to be news anchors yet. [laughter] howard: they certainly don't, thank goodness. romaine: that is all i'm concerned as long as i have a job. caroline: there is an ai in china. it wasn't that bad. romaine: we are glad you are here, powered. howard: no replacements for you folks. that is for sure. [laughter] ceo,ne: the founder and howard brown. coming up, speak with the ceo

of beyond meat. surge over 160%, the best u.s. debut since at least 2008. this is bloomberg. ♪

caroline: a quick check of the latest business flash headlines. torivate equity firm plans convert from a partnership to a corporation. the trump tax cut reduced corporate taxes from 35% to 21%. the move will allow it to be listed in indices, like mutual funds and etf's. brexit gave hunt and low buyers -- homebuyers -- london homebuyers their biggest discount in a decade. theing more than 13% in

first quarter. lers had tolf of sel cut their price before finding a buyer. considering an ipo in london, the biggest retailer of watches in the u.k. they would use the money to expand into the u.s. market. apollowould also let management take a stake. >> apollo will sell part of their holdings. as you said, a minimum 25%. but apollo has been a great owner for us, and we enjoyed working with them very much. i do expect we will stick around for some time. caroline: romaine? romaine: a quick check of some notable earnings movers after the bell. arista networks falling as much a second quarter

revenue forecast well below the average estimate of 639 million dollars. they make a lot of networking equipment made in -- used in data centers. caroline: monster beverage up 8%. it's already the best performing stock in the world, basically. joe: caffeine and sugar, good combination. caroline: one that you know well. romaine: and burgers as well. you see shake shack. another good quarter for them, continuing to expand and post decent revenue. joe: all right. let's meet the company making what it sees as the future of meat. [laughter] the company that markets itself as a meat alternative. beyond meat, the ceo coming up. this is bloomberg. ♪

the latest innovation from xfinity

isn't just a store. it's a save more with a new kind of wireless network store. it's a look what your wifi can do now store. a get your questions answered by awesome experts store. it's a now there's one store that connects your life like never before store. the xfinity store is here. and it's simple, easy, awesome.

mark: crumpton with bloomberg first word news. the mayor of baltimore resigning, effective immediately. catherine pugh faces multiple state and federal investigations amid a growing scandal around the sale of a self published children's book series p last week, numerous federal agencies raided her home and office to determine if she used book sales to disguise kickbacks. attorney general william barr skipped the house judiciary hearing today on special counsel robert mueller's trump-russia report. the decision escalates an already nasty battle between democrats and the justice department. house speaker nancy pelosi says the attorney general's testimony

to congress raises what she calls "deadly serious questions." the speaker told reporters she "lost sleep" after watching barr defend president trump in his testimony wednesday before the senate judiciary committee. >> the attorney general of the united states of america is not telling the truth to the congress of the united states. that is a crime. mark: the justice department calls speaker pelosi's charge "irresponsible and false." democrats in washington want special counsel robert mueller to testify before the senate judiciary committee. committee chairman lindsey graham says the call is political theater for senate democrats running for president in 2020. ris, cory booker and amy klobuchar have announced candidacies. stephen moore, president trump's pick for the federal reserve board, withdrew from consideration after losing republican support in the

senate, largely for his past writings about women. moore said he regretted the writings and that they were meant as humor columns. moore helped design the 2017 tax cut. global news 24 hours a day, on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. caroline: thank you. now, above and beyond. beyond meat, maker of plant-based meat-free meat, soaring 160%, the best a decency financial crisis. the market value ballooning to over $3.8 billion. joining us now to discuss the historic ipo, beyond meat ceo ethan brown. i want to say congratulations, but is it that great? you could have gotten a hell of a lot more cash. ethan: we really are focused on

creating an entrance into the market that is sustainable for the long haul, getting the right institutional investors in, allowing consumers who have been so supportive to our brand over the years. we built this brand with consumers over the last decade. so i think less about the daily moves in stock, and more about where we can take this company and who has joined in terms of investors. we have a really exciting future ahead of us, and i am looking forward to executing. joe: let's talk about the growth opportunities. i grew up in a household that was vegetarian, so i am very familiar with a lot of the old-style faux meat products that weren't very good that are out there. a lot of people who eat meat talk about how great your burger is. how much of the opportunity is people who are currently vegan or vegetarian excited about better,g that tastes how much is it about people becoming vegan or vegetarian, and how much of it is people who will keep eating meat but want to change the ratio a bit in

terms of how much plant-based protein they get? ethan: that is a great question, and one that we think about every day. i am someone who really understands and believes in the role that meat has played in our evolution and our culture today. it did so much for us as we evolved as a species. my sense is that we aren't going to stop eating meat, but i do believe we can transition people from an animal-based meat to a plant-based meat. the consumers buying our product today, this is a really interesting statistic. looking in the nation's largest conventional grocery, consumers buying our products, 93% of them are also putting animal protein in the cart, maybe salmon, maybe poultry, and beyond. that is exactly where we want to be. we want to help them transition to a product that will be better for them and better for the. this is about enabling people to continue to eat what they love. if you love burgers, you can have more rather than less because you don't have to worry about cholesterol, things of that nature. sausage, the same thing.

that is the value proposition behind the company, versus catering to a smaller subsegment of the population. romaine: let's talk about the grocery environment. i was at the grocery store this weekend and i went down the aisle with all the vegan burgers, meat substitutes. probably a dozen friends. i am wondering, how is beyond meat going to differentiate itself or stand out from what is already a pretty crowded grocery shelf? ethan: the first distinction, we have really been pretty adamant with the retailers that we need to be in the meat cases if we will sell in their store. some will put us both in the meat case and the alternative sector, but our home is in the meat case. something really spectacular happened to us in that meat case, in southern california, again at the nation's largest conventional grocer. summer, we became the number one packaged burger in the meat case, and this was at a price point that was higher than other

products. so my believe is that as we continue to grow the product and work on pricing, et cetera, we will capture more and more of that market share. why are we different? i came from the clean energy space. i worked for a long time in that space. and we have a global problem, similar to the one we have with rising population, the type of protein we are consuming, the impact on the earth, the impact on our bodies. you need to spend like it is a global problem. you need to bring big solutions, big plans. so we have really said, let's get the best scientists, engineers, managers, and fund them properly like this is a global problem, and then get out of the way. a clear goal, making meat from plants, supporting them along the way. we have many years ahead of us, but so far we are off to a good start. $241 million to spend, as i hate to reiterate you could have gotten more, but with that money you can do r&d now.

how quickly can you bring more products to the market? how would you want to? is there a need right now? ethan: our innovation platform, the beyond meat rapid and relet this innovation program. the goal is to work as hard and as quick as we can to make the products that are currently on the shelf today obsolete. we do that for a couple reasons. one, we feel the urgency of what we are doing. two, consumers are demanding this,, coming to us in droves each time we make the product slightly better. we recognize there is competition. we want to be innovating so quickly, that if you are trying to copy what we are doing, and there are some trying, you will be chasing a ghost, because we will have gone to the next platform, the next product. so it is my goal to have a new product on the market every year. whether we do that on a year in and year out basis, we will see, but that is the frantic pace of innovation we need to maintain to deliver against this promise. joe: i am glad you brought up the competition. there was a story that i read about a shortage of burgers from one of your competitors,

impossible foods. at some locations in new york they people were told yo were out of the impossible burger and you can have the beyond meat burger, and people said no thanks. maybe just because they were unfamiliar. talk about the competition. if people said the impossible burger tastes better, how much is what you have now kind of a beta version or 1.0 version, and what are the areas in which you think you can continue to innovate, create superior products? ethan: first and foremost, impossible is a good company, good people, working on the right mission, et cetera. it is a $1.4 trillion industry. we have been at this for 10 years. one of the things that happens when you don't first have venture capital money, and we were very lucky to receive money about three years and from kleiner perkins. but prior to that, we were funding on our own, and one of the sources of funds is revenue, so we were always out in stores very early building the product, listening to the consumer.

when you listen to the consumer, you can't help but infuse the consumer's voice in the product. so we have done that. our products reflect certain decisions we made about non-gmo, no soy, everything natural, nothing artificial, et cetera. so it's not only about taste and nutrition, but what you are using to get there. we feel very confident in the choices we have made. it is a big market. there's plenty of people who can come into it. but we will continue to lead through pace of innovation, listening to the consumer and doing what we have done to get us here today. caroline: interestingly, you put it at a risk, some areas, geographies are trying to sue against plant-based meats using the term "meat" at all. is that realistic? would that just create more pr? would you have to change your name? ethan: we are not changing our name, for sure. if you told me i had to call my

iphone an igadget, i wouldn't. [laughter] consumers love what they love. andall it beyond meat, that makes perfect sense. the more noise made about this and more publicity, the more sales. i think it is a misplaced strategy, but the point i really want to make, i care a lot about american agriculture and the history there. this is an opportunity for the farmers, not a threat. if you think about the value proposition we are delivering on, if we use 93% less land to create the same amount of burgers you would use, 00 acres of land, you can create the same amount in seven of those acres you would need the full 100 for using cattle. so for farmers who switch to our system, they have 93 additional acres they can use to generate money. so i believe that the digital economy helps a lot of urban areas, it really left out the

rural economy. we have the opportunity here to deliver some of the most exciting innovation back into the rural economy that i think has been seen in a long time. i think maybe the combine was the bigges innovation of the size i can think of, and that was well over 100 years ago. it's time to bring back innovation to american farmers, and i think we can do that. romaine: i know you have had a long day. really appreciate joining us. ethan brown of beyond meat. it has been eight years since the european debt crisis. up next, we're joined by the economic minister of cyprus to discuss european debt and cyprus ' comeback. this is bloomberg. ♪

bright spots in the latest euro zone manufacturing

data, most gauges beating and manufacturing. cyprus is now one of the fastest growing countries in europe. we are joined by harris georgiades, the finance minister of cyprus. thank you for joining us. is this sustainable? are seeing some of the hardest hit countries in the euro area during the crisis suddenly becoming the fastest growing countries. obviously the strongest countries are some of the weakest, with stalling in germany. what is driving that? and in your view, are those trends sustainable? harris: i think so, because we have actually tackled what the that wereems were unsustainable in the pre-crash years. so there's no unsustainable credit expansion now. the banking sector operates on much healthier footing. likewise, we have a had a balanced budget since 2014. so the elements which made

growth unsustainable before the crisis have been tackled. solid performance from all the sectors of the economy. tourism, business, services, higher education, everything. we are confident enough we shall remain one of the fastest-growing economies in the euro zone at least for the medium-term. romaine: cyprus partially benefited from issues going on, some money flowed there to escape whatever was going on in greece, other countries. do you worry that with some of those economies improving, some people might flow back out? harris: so, we have been gaining tryings, because we are to keep cyprus very competitive as a jurisdiction, an ideal base from which to conduct business. we all benefity

.u., euro zone economies perform well. it is not a zero-sum game, you know? performers in the euro zone, i am more optimistic about the eurozone growth outlook. caroline: why? harris: well, the risk, it is more political. there isn't really something fundamentally wrong with the european economies, at least not with most of them. it is a political risk. if this is tackled, if we are going, if we avoid a no deal brexit, if trade issues globally subside, then i don't see a reason why the growth momentum in the euro zone would go down. joe: let's talk about some of

those political risks. there's a few different trends. obviously there is the rise of populism both on the right and the left. in europe it seems a little more robust on the right. there is also fragmentation, so even in countries where you don't see that, like in the recent spanish elections, you are still seeing governments becoming much more fragmented. what would curb this trend, if anything? why should people get more worried? harris: kid won't go away just like that -- it will not go away just like that. we need to find ways to make an efficient, enlightened case in favor of liberal democracy, of open trade., this is what has brought us this far.

we know that income inequality is a challenge, so we have to adopt policies to make good for that. but there is no easy way out. we have to fight the political battle. we have to find smart ways to fend off the populist tendencies, at least in the european elections coming up this month. one of the most critical that we have ever had. depending on the outcome, governments at the -- governance at the e.u. level might become much more tricky. romaine: you have come to the bond market twice this year with good success. much more demand than i think people anticipated. are you expecting to come back to the market anytime soon? harris: we have more than covered our needs. as i mentioned, we don't have a deficit. we have a very good surplus. management,ically

making little payments on older debt, which is more pricey. so probably not anytime soon, having gone as you said to the market twice, recently with a 30 year bond, the first in the history of cyprus, actually. for thes good timing perceptions for cyprus, but also good timing with the bond market in a sense, so we shall see. joe: really appreciate you coming on. the cyprus minister of finance, harris georgiades. coming up, are you as confused as i am to pick in this weekend's kentucky derby? i had a chance to talk with our in-house horseracing expert to go through the numbers. that conversation is next. this is bloomberg. ♪

145thhis saturday is the running of the roses at churchill downs. the kentucky derby brings together the top horses, top owners, with millions of dollars at stake. i decided -- i wondered how the and decide who to bet on, took a special look. ♪ ♪ it is kentucky derby time, the first of the three triple crown horse races. millions of dollars at stake. i always wanted to know, how does an expert handicapper decide what a good value is to bet? i have been looking through all the papers and past races, the horses, and i cannot make heads or tails of it. the good news is, there is someone at bloomberg who knows a lot more about this, and i will talk to him. here with david papadopoulos, a bloomberg editor but more importantly an expert horse

better. he will walk me through how he analyzes to prepare for betting on the big race. let's get into it. we have all seen these racing forms, but what are we actually looking for? david: my topic is roadster. i will pick a few things that resonate. the speed number in bold numbers is usually a great place to start. you also want to see in the past performance lines where they finished. this case, the most recent race, came in first by half a leg, was bet hugely. every time you see an asterisk next to the odds, that means they were a favorite in the race. he is trained by a trainer who knows a little bit about winning. sired by a redhot sire. joe: you explain why roadster is likely a favorite, but how do you know if you are getting good value? david: go back to the main racing drop.

from the moment roadster hit the track, he was a superstar horse. >> and away they go. david: watch the hands of the jockey, mike smith, and how quiet they are on the back of the horse's necks, and watch the hands and whips of other riders on their horses. mike smith is just quiet, confident, like a statue. when a horse can travel like that in the jockey's hands, you have a very talented horse. derby,santa anita finding himself behind a wall of horses, then does something i don't think i have seen since "seabiscuit." the jockey late in the race actually takes the horse, holds it back. that is nice. mike smith does this, pulling the horse farther out of contention, dropping the hands of little bit, letting the other horse go by, and he is out of

it, no chance at all. there's not much time left, but suddenly the horse picks it up and just explodes. >> roadster on the outside! roadster, so confidently handles! roadster gets up to win the san ta anita derby. de up a lot ofa graham. he will win. joe: take my money to the track and put it on roadster. two dollars. david: you will be a rich man. [laughter] joe: can't wait. joe: joining us live onset is bloomberg's david papadopoulos. so, you still like roadster? we filmed that a couple days ago. another horse dropped out. what is the latest? david: we are sticking with roadster. you still have your whopping two dollars to win. [laughter] they are talking about rain at churchill downs this weekend. he's never run on a wet track,

so that could be an issue. and not crazy about the way he has been training, but they told me that the horse is training fine. romaine: can you tell me how international the horses are, where they are traveling from, who the trainers are? the u.k., a huge thing, horseracing. how international is it? david: they are trying to make it more international. traditionally there hasn't been an international race or the horse coming in from japan, master fencer. he's not going to win. a couple horses from dubai. the hope is to get horses from that part of the world win, come here. the americans sent two horses to second, endirst and of than coming back here. but they are trying to make it more international. joe: david papadopoulos, you have my money. all-in on roadster. better win. romaine: will you up it? joe: i don't have that much

confidence. [laughter] romaine: brutal -- romaine: brutal. caroline: that is all from "what'd you miss." romaine: bloomberg technology is up next, in the u.s.. joe: have a great evening. this is bloomberg.

♪ ♪ ♪ i'm emily chang in san francisco, and this is "bloomberg technology." tesla aims to raise $2 billion in new capital after musk repeatedly said he no longer needed it paired microsoft's big -- needed it. plus, microsoft's big bet on the cloud. we speak to the executive vice president.