coming up in bloomberg best, the stories about business around the world. alphabet leading a parade of companies reporting earnings. >> financial returns not yet where we want them to be. >> the fed holding a meeting and patiently committing -- repeating its commitment to patients. continue.ks the u.s. and china holding another round of trade

discussions. low unemployment, strong growth, and virtually no inflation. all of those models should be buried. perspective. >> we are 10 years into an economic recovery. at some point, there will be a recession. is chugging along pretty well. >> it is all ahead on bloomberg. hello and welcome. this is bloomberg best. your review of business news, analysis from around lunenburg. let's start with a day by day look at the top headlines.

alphabet released quarterly results following earnings on facebook and amazon the week before. it tumbled after first quarter revenue missed evidence. billion,e in at $29.5 fisting estimates of 30 billion. add revenue did rise. how would you characterize the threat of amazon and its agile advertising business? see it asve said they a green field. they are seen a lot of movie -- money moving off-line to online. they were able to keep that number above 20% and rising. there was no clarity around the earnings call what the plan was to address that concern. shares rising and after hours

trading. upper 5%. continuing the transition to a services company. high of $11.5ng a billion. drivergest revenue remains the iphone. demand stabilized at $31 million. >> it is still huge. every time a new i own is introduced, it is going to be one of the biggest in the world. they have been adding these revenue streams. what was announced earlier this month, a magazine product, tv product, apple built this amazing ecosystem. startede companies building businesses on top of that. apple was trying to get as big a piece of that as it can. >> trade talks in beijing wrapped up today.

treasury secretary mnuchin called them productive. >> at some point, you realize we are close to get something done so we are going to keep going. other times, you throw your hands up. line, they are saying the same thing in terms of a timeline, we are going to get some type of answer within the next couple of weeks. sarah sanders saying the discussion remains focused toward making progress on structural issues and rebalancing the trade relationship. sources telling the financial times trump is dropping the demands in exchange for a trade deal with china. they characterize this as him softening the administrations opening position.

>> we are awaiting the third fed rate decision of 2019. hold ratesxpected to steady. there has been a lot of criticism from president trump to make a cut. a strong casee for moving in either direction. >> they are in a wait and see mode for the future. i would be surprised if there is much of a movement in terms of policy. perhaps for several months. unless you see a real change in how the economy is performing. we saw a statement that underscores inflation, acknowledging it is below target. he walked and write back and said, it is low. out specific reasons why he thought it was transitory.

that is why they are not ready to do a preemptive cut yet? coming off of record highs. we had a significant move during the press conference. like the risk off mood caught the market. her political and rival jeremy corbyn are signaling they may be inching closer to a deal on brexit. up talksming to wrap next week. it is super tuesday for the bank of england. to sign actually want an agreement or get an agreement with labor? willing tomy corbyn give her that? was grilled by rather

skeptical lawmakers. she spent most of the session dodging questions about customs unions. dropping hints she is prepared to move toward something that might not be called a customs union. it could be called something else. the mood music is getting louder. >> you have some interesting language coming out of the be o.a.t.. raising the growth forecasts. the committee continues to judge an ongoing tightening of monetary policy at a gradual toe would be appropriate return inflation sustainably. carney talked a tough game but the market saw through it. game.did talk a tough

he signaled there is one more hike may be needed. they cut inflation expectations. i don't think many of the central banks are confident either. >> there goes another fed pick. hishen moore has withdrawn name from the nomination process. this came just a couple hours after he told us he was quote all in. the situation today, i think is going to be different three months. i am not too concerned about this. happened tothing herman cain. where is the vetting process? >> in this case of fed nominees, it does not appear there was much of a vetting process. ofre is a long list

consistent conservative believers. trump thinks it is very important to adhere to some of these names. it does not appear that is how it works at all. let's nominate him. is a goldilocks jobs report. 230 3000 jobs in april. unemployment rate falls to a 49-month low. goldilocks scenario, equities continue their journey higher. >> jay powell was right. he said we should worry about the economy. notstly, this is overheating. average earnings, 3.2. chugging along nicely. unemployment, 3.6%. blowoutre getting

numbers on jobs like today. numbers inowout first-quarter gdp. a blowout number yesterday with year on year productivity, 2.4%. you know how important that is for the health of the economy and an absence of inflation. what we are seeing is low unemployment, 3.6%. somebody told me it was though best since the late 60's. virtually no inflation. all those models could be buried and we should look at a new world. people respond to incentives. that is what is happening. the economy is freer than 20 years plus. >> still ahead, as we reserve -- review verily with a -- we review the week in bloomberg

best. others weigh in from the milken institute global conference. and highlights from the earnings report. the turning -- >> we have made huge strides forward resecure any foundations. the >> this is bloomberg. ♪

>> this is bloomberg's best. of theesume our round up most interesting earnings reports. standard chartered is one of many european banks in the spotlight. they have good news to share with investors. buying back ordinary shares for the first time in more than 20 years. the purchase plan comes weeks after settlement between the bank and u.s. regulators over violations of sanctions.

how significant is this? any businessure ever finishes a journey. we have made strides forward, getting the business back to growth. the financial returns not yet where we need them to be, but the last quarter was further evidence we are making progress down that route. , spain's biggest bank. for a more challenging environment. net income came in a little lower. i have got italy coming out of recession, germany under pressure. how would you describe the spanish market to me? >> europe in general is challenging despite continuing to grow our revenues.

the conditions in europe and spain are clearly weaker than in latin america. that is what what compensated weaker performance in europe. third biggest bank has reported a dip amid continued trouble in its investment bank. >> if you look at globally at the industry, both this performance for the equity side is better than average. the situation in the first quarter in terms of client demand was at the beginning of the quarter the same order of magnitude with low demand.

end, we saw -- the situation and terms of volatility remains low. speaking, the biggest thing for me is our equities business is less volatile. resilience ofe our business model specifically and equities. bnp paribas bouncing back. equities revenue slid more than analysts estimated. digitalized, created a joint venture capital market to help people. help investors bring them together. equity look at equity,

was a big impact by what we saw in the market at the end of 2018. customers took some time to come back into the market. the firstompare quarter with the gradual pickup toward a strong first quarter, that is the evolution you get. hsbc shares have jumped in hong kong after the bank delivered first quarter profits that beat analyst estimates. managed toate -- moderate cost growth. we are continuing to invest substantially. year.not a full >> dots bank -- danske bank

says interest income will be lower in 20192018. money laundering case requires attention. you talk about income being lower than 28 team. put some sort of proportion around that forgotten -- for guidance. >> we expected it to be in the volumenge, given we had growth to offset the costs. being lowerish rate for longer, we will not get the benefit from that. we are seeing funding costs have significantly increased. we are guiding lower numbers within the ranges. >> china's five biggest banks have reported an increase in first quarter profits.

what can we glean from the report card? >> we have seen the slowdown in the chinese economy followed by stimulus. that is where we lead to the first quarter. it is having an impact on the big financial companies. they have been encouraged by authorities in the government to lend to risk or small to medium-sized enterprises in the private sector. the world's largest banks -- $770rforming loans million. increasest quarterly in three years. this is something they are going to have to tackle down the road. giant elirmaceutical -- beatingted adjusted earnings per share. you are comparing apples to apples. >> it was a busy quarter.

on one hand, we are accelerating the growth of our newest products. old standby, has gone on patent. that is a significant headwind. was 5%.ng growth 7% in volume. taket 5% of growth if you it out. we are pleased with the newest performance of our products which make up 40% of the company. we are on track to deliver on our midterm commitments. as well as our operating margin goals. >> qualcomm earnings -- investors look past that. we are disappointed. i want to start with the

headwind that is removed after that payment from apple. $4.7 billion. how much of a headwind is removed given that this is behind us. investors did not believe it was ever going to happen. qualcomm concerned if was able to achieve a settlement with apple, it would be in apples terms and come at a considerable discount. that is really what they wanted to happen. >> general motors is falling after a slight miss on revenue as vehicle sales declined. some of that as i understand was ft investment. >> we did a dollar 41, very much in line with our plan. as youd include $.31

point out. if you strip that out, one dollar 10 was very much in lines with our expectations. us up well for the rest of the year as we expect guidance. ♪

are watching bloomberg best. many of wall street's most powerful players gathered in beverly hills for the milken institute's global conference. bloomberg television spoke about issues of interest to investors. we sat down with david solomon who shared his perspective on the state of the markets and the economy. >> i think throughout the quarter, activity levels improved. we had a speed bump in the

fourth quarter. government shutdown contracted to the environment at the beginning of the year. the underlying economy had continued to play well. as we moved through the quarter, we saw a move back into risk assets. as you get around the world, china -- in china, europe, japan, lagging a little bit. the overall package especially with the pivot central banks made coming out of the end of the year has been quite constructive. client activity has improved. level.t a nice >> how do you think that pivot and the results it has had in financial markets influences the way central bankers about policy going forward? >> i think the policymakers have been clear with their

communication to help policy looks throughout the year and into 2020. >> you could make the case jay powell might have screwed up. >> the chairman is doing a good job. it is a difficult job. if you look forward, it doesn't look like a lot of policy activity as we head through the rest of the year into 2020. the economy is chugging along well and polity -- policy will be stable. you will the place see the impact of stable policy is the credit market. >> credit markets are constructive. money is easy. when you look at the big bang, the big credit markets, i don't think there has been a move in credit standards. of theu get out regulated institutions into shadow banking, there is a lot of capital that has moved in

that direction and less transparency. is something to watch. >> problems? >> i don't think it is necessarily systemic. when you think about that space, some of the capital is longer dated. it is not money that can run away very quickly. that willarkets grow, be something to watch and monitor. the regulatory environment has pushed more credit lending and that direction. that is something we should remain focused on. >> david solomon praised jerome owell and that conversation. coming up, talking monetary policy with the cleveland fed president. plus more from the milken conference. there are problems the u.s. still needs to fix.

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customize each line by paying for data by the gig or get unlimited. and now get $100 back when you buy a new lg. click, call, or visit a store today. ♪ welcome back to "bloomberg best." let's revisit more of our conversations from the 2019 milken institute global conference, starting with jason kelly's interview with the blackstone chairman and ceo. ♪ >> what is your one big take away from china right now? you have invested their, done a lot of philanthropy there. what do you think people are missing about china? >> china has stimulated their economy like they said they would when the tariffs went in. i was there for weeks ago as the people at the central bank were telling me it works very nicely,

and now you are seeing the result of that, which is a surprise. commentators, that china's economy looks pretty solid now in the sixes, 6% growth. i think that would have surprised some other people, didn't particularly surprise me. they have the ability in china to really force money into their system, to create growth. they are doing it and it has been successful. >> are you putting more money into china at this point as blackstone? are you investing more heavily, and where? >> we just bought a company there. i think china is a harder place to invest for outsiders, and you always have to be prudent and thoughtful when you invest. we are looking in the real estate areas as well.

depends what happens and what values are. ♪ >> the fundamentals have not been moving, but they are not weeriorating as quickly as might have been worried a few months ago. i think there are some situations which could be of concern. it is going through very difficult time with the yellow sentiment is of concern. and of course brexit, which is a never-ending story of brexit or no brexit. >> does the yellow vests movement pose a risk, direct or indirect, to your business? >> yes, direct. to food delivery,

destroying boutiques. i think more fundamentally, if you leave that aside for a it is how and why it started. movement, andne all of that for shaking power. we have been in the sort of , wet economy for many years have very clear laws of purchasing power and that's a major concern, that is how the yellow vests movement started. ♪ >> for most of our businesses globally, and in particular here in the united states, everything feels pretty good. there's no signs in front of us that we will have a recession, but no one should forget that for 10 years into our economic

recovery, at some point there will be an economic concession. >> what worries you most in 2019? where are the warning signs? >> we don't see big issues in the economy. clearly, valuations are higher than they were 10 years ago, five years ago, three years ago, a year ago, and the stock market. and it looks like they were going up but it didn't look like it at the time. those were the things out there that could disrupt the market. when that happens, how it happens. that and political issues. but when we are investing in the long issues, you don't get too concerned about short-term governments. ♪ trade,a big fan of free but it needs to be fair trade. the u.s. has got to have terms of trade around the world that are trading that other parties enjoy. we know this has been good for

the country as a whole, but it has devastated one town employers, where the employer is shut down. we did not think enough about job reeducation or helping people to move to other communities that were going to be adversely impacted by free-trade. we just didn't focus on this enough. so unfortunately, we are going to make mistakes. they key is how well do we deploy our resources to address our mistakes. >> what do we do with some of those communities where people have been left behind by the unfair terms of global trade? >> number one, you try to create incentives to bring new employers to the region. if you are successful with that, that's a win. if you are not, then you were going to have to encourage people to relocate elsewhere. my family through its history moved across the united states to pursue their jobs and

opportunities. there's nothing wrong with having to make those changes in our country. increasesal mobility the flexibility of our workforce and opens more doors. >> that's a pretty harsh message for those people in western , partsvania or indiana of ohio for example, or kentucky or west virginia. >> it's a really tough message. it's a tough message. important that we start to have an honest conversation within the halls of washington about what we need to do to improve our country. ♪ >> the fomc left its main interest rate unchanged this week. chairman jerome powell continue to emphasize patience and grappling with conflicting currency in the u.s. economy. on friday, michael mckee spoke with a fed president and got

more insight into the central banks outlook. ♪ >> i think that our interest in the neutral rate, range of neutral, that's a good be.e for it to it is calibrated for where the economy is and we will continue to watch the data. i think we are in a really good spot in terms of monetary policy. soft,nflation is a bit but labor markets are strong and we take a balanced approach. i think we are in a good spot to wait. >> has your view of highly generated inflation or the dangers of low unemployment changed? >> i have over time lowered my star estimate. those things are estimated, so yes. the longer we go on with the strength in the labor market, not generating as much inflation pressures as we have in the past, the more you recalibrate your estimate.

but i wouldn't say my process has changed. i still think inflation expectations being anchored is important for determining where inflation will go in the future. that's what i watching as well, not just the slack in the labor market but inflation expectations and what it means going forward. ♪

♪ this is "bloomberg best," i'm rosalind chin. let's continue our global tour of the week's top business headlines. in spain, the incumbent prime

minister survived a snap election. ♪ is set to return as prime minister, this after the third election in four years. the socialist leader has closed the majority, but could still rely on capitalists and separatists. >> in a comeback for him, we have seen this time and time again, he has to two kind of paths he can take. this would be seen to the market as something very stable, and investors would certainly want to cheer for this, but the problem is that he says he campaigned on the fact that he would not do a deal with sanchez. likely, is more teaming up with the antiestablishment put amo party and they would have to have a hodgepodge of other regional parties which would mean reaching out to catalonian nationalists. you know we have those european

elections at the end of may, so we will not see a government take place for at least a month. ♪ >> china's official manufacturing pmi slipped in april, barely making it above the 50 line. the data is signaling that the economic stabilization in the first quarter is still fragile. the factory gauge is still expanding, but at a much lower pace. optimistick like the green shoes we saw last month is starting to will. >> i believe that they will remain. if there are signs they are feeding -- fading they will be reinvigorated because the number one policy in china is for the communist party to remain in power. both the fiscal and stimulus support is important and i believe it will be successful. >> big oil this morning,

anadarko decided it will have a conversation with occidental. they say this bid may be more attractive. what is going on? >> i think that one billion breakup fee with chevron might also be affecting them. it's interesting to keep in mind that the occidental ceo said they have made problems in the past. it seems like they feel they would be a bigger fit to the giant, even though financially and in terms of the cash, the occidental offer is definitely superior. >> warren buffett throwing a curveball into that oil merger that we've been watching so careful. $10y, chevron, anadarko, billion in the oxley side of the equation. i thought they had the financing lined up. they told us they had the financing lined up.

does this put coldwater on that? >> that's what everyone is saying. we thought this was in the bag, but this is going to be more expensive. there's a little bit of surprise there but i think to the extent that the anadarko board is considering whether the occidental bid is superior, this will push them to say we do need to move forward with something, and then chevron will have four days to come back and counteroffer. ♪ sport is standing by its ceo after an unprecedented shareholder rebuke. 55% of investors voted to remove him over a takeover with monsanto, which has given rise to a wave of u.s. lawsuits. they also demanded answers to the market cap, which has ballooned since them monsanto deal completed. >> it was a raucous board meeting that went on for about 13 hours.investors eventually voted against the ceo.

that's pretty unprecedented here in germany. the supervisory board had an emergency meeting, they had to do something, so they came out in support of the ceo, but ultimately will have to see where the board goes with this. investors are telling us they want to strategy review, they want them to look more closely at the amounts that they have -- the demands they have, one of them being the potential split of the company. that is something they do not intend to do. ♪ >> edward bramson attempt to get a seat on the board, that didn't go well. 87.21% of the shareholders voted against the resolution. is this a confirmation of the of, wey or just a sense will give the chairman a little more time? he said that investors are

willing to give more trust to the new chairman, to see how it goes in the next two quarters. any strategy is likely changing, the new management is taking over today from the previous. the next few quarters will be very important. ♪ >> boeing is holding its annual meeting today. >> we are making steady progress on the path to certification, having completed the official engineering test flight of the software and the final technical flight tests prior to the certification. >> the ceo doing the best job he knows how to reiterate safety and talking a lot about the software update while not saying anything about how the original software was flawed, tiptoeing that line. overall, that is the concern, that we are not getting any new

information. it was interesting, there was even a question from one of the shareholders of why haven't you stepped down >? onsaid the focus remains dogging the hardball questions. >> the day after the boeing agm, airbus came out and smashed estimates with its q1 numbers. the a320 narrowbody, which competes with the 737 max, is back on track and they delivered 126. can airbus take advantage of the problems boeing is have? >> the issues is that airbus has been sold out of its production line for the next few years, which makes it difficult for them to capitalize simply because they don't have the space. is maybe withon enough pressure, customers who are looking for a replacement,

whether that would be enough to persuade airbus to increase production rates. ♪ theesla shares rallying on electric carmakers plan to raise $2 million in debt. are they pretty much in line with what everyone was expecting? >> i think that's right. that thengly hinted first earnings might make sense and i think what he said was it makes a lot of sense and i think cash wasf stock and probably welcome news for investors. they have a debt payment due in november, they are trying to get production up and running in china, they want to do things in europe and work on the model y, which is the crossover suv that will be important to the brand. they have cash needs, and the cash burn hasn't been terrific of late. happy thatestors are

they know what the plan is now. ♪ >> bloomberg has learned that the telecom giant vodafone found securit flaws in hallway equipment as much as a decade routers, whichd could have given the company access to sensitive user data. vodafone begin a deeper probe into vulnerabilities in 2011, and later found backdoors were present in its fixed access network. huaweiback in 2009, when was trying to expand, it this g and almost right away -- a big contract and almost right away they had big vulnerabilities -- big contract and almost right away they had to the homeilities. internet environment. the computers, and potentially the wider vodafone network. according to the network, they confronted while white and ask them to remove the backdoors.

they agreed to remove them, but vodafone found with further testing that they were not removed. ♪ a blockbuster weekend at the box: office with endgame" earning $1.2 billion, the first to earn that much in three days. it said records both in china and domestically in the u.s. what is behind these mega numbers? we have never seen anything like it. >> this is the end of a 22 movie franchise they building up over a decade. it has this expectation behind it to create these compelling man,cters, iron captain america. i would be very surprised if we didn't see more marvel films in the future, but with that new "star wars" film, there's a lot coming to disney.

a good time for bob iger. ♪ >> commodities are in the red today, oil falling as much as 4.2%. is this a supply issue or a demand issue? >> what we saw today was -- oil prices were down more than 4%, which if it held, would have been the biggest drop so far this year. administration has continually said the u.s. will help to offset the end of the iran sanctions waivers and today we are seeing the effects of what's happening. ♪ meet, maker of the plant-based meat free meat, soaring 160% to become the best ipo debut since the financial crisis. i want to say congratulations, but isn't that great that your stock price has risen almost triple, and you could have got a hell of a lot more cash? onwe really are focused

creating an entrance into the market that is sustainable for the long haul, allowing consumers who have been so supportive to our brand over the years. we built this bread with consumers over the last decade. i think less about the daily moves of the stock and more about where we can take this company. we have an exciting future ahead of us, and we are looking forward to executing. ♪

♪ this is a relative location. what this shows -- we are set on the i 300. you have the 10 industry groups and this shows you rotation from sector to sector, which sectors are leading the rally. >> there are about 30,000 functions on the bloomberg, and we always enjoy showing you our

favorites on bloomberg television. maybe they will become your favorites. here's another function you will find useful, it will take you to our quick takes, where you can get important context and fast insight into timely topics. here's a quick take from this week. ♪ >> decades in the making, quantum computing is the technology they could make today's fastest supercomputer look like an abacus. teams around the world are racing to build machines with different approaches. while the technology is moving quickly toward reality, it is too soon to tell when it will get there. this is your bloombergquint take on quantum computing. the computer you are using now processes information in bits that can represent two possible states, one or zero. quantum computers use quantum bits, which can represents one or zero or both at the same time. this is called superposition. they can also exhibit what is called entanglement, a state in which a change to one changes the state of another. these properties let quantum computers consider multiple

possibilities at once, while a normal computer plugs away at one possible answer at a time. >> if we actually figure out how to do these kinds of calculations we can solve complex and unfathomably long calculations with a quantum computer that would take a traditional computer, no matter how good or fast it is, thousands of years. >> there's a lot of hype around quantum computers, and researchers continue to make incremental advances. evangelists promise machines that could break the most a penetrable coded messages, accurately predict weather patterns, and instantly diagnose and treat disease. but there is still a way to go. >> it's very difficult to make the physical computers, the hardware for these things. a lot of the research is in material science, figuring out what is the best hardware to use. there's a few different options. you aren't just talking about the traditional silica and ships we see. >> manufacturers either use loops of superconducting wire,

semiconductors, combinations of both, or even stranger approaches, like twisting subatomic particles into a braid. only existm bits can in temperatures colder than deep space. one company became the first to sell quantum computers in 2011, although their usefulness is limited to certain types of math problems. ibm, google, intel, and others have all built working quantum computers. microsoft is investing heavily while china is throwing hundreds of millions into the technology. >> anyone who knows the promise of the technology can't help but get excited about it, even if it is many years away, and even if it never works out the way that theoretically it could. this is still something people think is worth spending a lot of money on. ♪ >> that was just one of the many quick takes you can find on the bloomberg. you can also find them at bloomberg.com, along with all the latest business news and analysis, 24 hours a day.

that will be all for bloomberg best this week. thanks for watching. i'm rosalind chin. this is bloomberg. ♪

♪ emily: i'm emily chang in san francisco. this is "bloomberg technology." coming up in the next hour, eyes for amazon. warren buffett taking shares of the tech giant after underestimating it. why the oracle of omaha is changing his tune. overtaking apple in the global smartphone market. we take a look at the big picture. how the company behind wework exploded the industry.