saw drop off in these companies. >> where else are you going to get the great growth? i have to stress, the addressable market for these names is much bigger than people expect. the long-term trajectory for the growth can last longer than it used to. >> before we get to the numbers, how big is the addressable market for something like beyond meat? dow jones industrial average losing 80 points. s&p and nasdaq closed at record highs as we get ready for nest -- for facebook and tesla. romaine: russell 2000 up. stock index of 3%. .ou had a couple losers here kind of an old-school company, tupperware down about 20%. irobot down. caroline: got hit by the

tradewinds. you have to give it to the market, amid concerns about antitrust, we are still at record highs. romaine: let's dig deeper with our markets reporters. >> i am thinking about those record highs. nasdaq, s&p 500 tack index and stocks at common highs. the common thread is technology. 6%,s leading the way, up today up 3.1%. the stock putting in its first all-time high since april. texas instruments helping out. we have market reports after the bell. facebook and tesla, amazon and apple. that's take a look at the longer-term chart of the nasdaq 100. much of the fears around the possibility that big tech could be regulated, but last year put volatility, there is another record high. one reason to think strength

could continue. we see a series of bullish higher loads telling you that the momentum may just remain bullish for a while, but watch consolidation down to the moving average. tech and stocks are bullish. another stock reaching a record is chipotle, the food giant. highest since 2006. this is after its previous record high on july 18. earnings were better than expected. sales increase the most in two years and a 10% gain in comparable sales growth also helped out by the biggest year-over-year increase since the first quarter of 2017. digital delivery, innovation and stronger marketing fueled the sales jump. news, bestreaking buy is elevating what they call a veteran, a 30 year veteran into the role of cfo.

that is none other than matt, who was pleased to be chosen. scarlet. scarlet: still with us is sarah ponczek. we are waiting for facebook results. i want to get the idea of small caps. how do they compare to the big caps? >> we are seeing more growth as the general economy is still incredibly strong, that you can divide it into two groups. one international exposure and the other domestic. you want to stay with domestic. that is why we see enterprise tech outperforming. everybody domestically and internationally, because you don't have the trade war aspects, is upgrading the technology that runs their companies. there is a long road ahead for that kind of upgrade. romaine: we are only 25% through the earnings season, but with regard to trade, have we heard much in regards to impact?

we know boeing has talked about impact, but have we really seen any widespread impact. is a surprise one way or another, it would actually be that companies are actually handling the fallout pretty well. at this point, it has been narrated, unless we see further tariffs implemented, they know what they have had to do in order to absorb the changes, whether that is raise prices, pass costs onto consumers, but largely, we have not seen a huge impact from trade and tariffs. we have seen companies dealing with it well. caroline: what is the one number? the daily back to -- the daily active users or revenue? >> bottom-line line eps.

average revenue per user. question is, with instagram doing so well, how much more can they stock the channel. with monthly and daily active users at 8% year-over-year, the question is, with that small amount of growth, you have to push that in order to get the top line growth that you want. reportingfacebook second quarter activities, 1.59 billion dollars. shy billion dollars, just of overall expectations. overall, we are seeing mobile ad 91%.ue, $.91 down versus the previous year. they are seeing a beat when it comes to second quarter revenue. that included a legal expense on the ftc settlement.

the second quarter is lumpy, because there are extra numbers. it includes $1.1 billion on all terra. line, it handily beats the consensus estimate of 16.49 billion dollars and is better than the highest estimate compiled by analysts. romaine: why do people continue to bet against this company? abigail mentioned this being the anniversary when they had that quarter where they surprised everyone, stock fell, the biggest decline on value basis, but the interesting thing is they still have the eyeballs, people are not leaving the platform, they continue to post revenue growth and profit, even when you factor in the fines and some other hits to profit, they continue to be the juggernaut. >> when it comes to facebook and some other names, people look at

the immense growth we have seen and you look at the rise we have seen in share prices over the past decade and people say this can't possibly go on for much longer. you hear it from people coming out and talking about bubbles, then they flag privacy concerns. you just think this can't go on forever. scarlet: i know this is something that facebook gives overall, but should they break it down into facebook proper versus instagram? thatthink they would show it is accelerating for instagram faster than for the basic newsfeed. scarlet: what about messenger? >> we are just getting to the point where they are starting to generate revenue from messenger. i think the libra thing long-term is more interesting than whatever they are doing today. that is the play, but it is a longshot play, monetizing the

platform. caroline: the regulations have got to be a key concern. -- wee a headline saying know that the department of justice is looking from an antitrust perspective. the ftc, perhaps why we are seeing the after hours move up more than 3% on the revenue. came with theeat announcement yesterday department of justice and now the ftc. >> it has been front and center, but i thought bloomberg intelligence had a great headline, the impact and outcome of the fallout of these investigations is years away. you have no idea if they are illegal find something or something to carry it -- to tear these companies down. while you are dealing with the headline effects, we saw it hit these big companies, but throughout the day, we saw each of them climb higher and we are not going to get the outcome of this in the near term. one year ago, we kind of had

that moment in time where this question came up and it was interesting to watch investors and their expectations for the bottom line of facebook relative to expectations on regulation. for a moment, they were like, this could get squishy, then they said it was not going to happen. you saw what happened to the multiple. it's going to be interesting to watch google this quarter with what they are doing with youtube and the changes to the algorithm. recognizedbviously that there are issues socially with what is being promoted and how much that will cut in. last quarter, it did cut in and investors got squishy about that. they are dealing with the same thing on different windows. scarlet: here are facebook's results. revenue beating the highest analyst estimate. $16.9 billion.

analysts were looking for just under $16.5 billion. as a percentage of total ad revenue, up from 91%. the number was messy, because there are a couple of one-time items. if you back out from the expenses, including $2 billion for the ftc settlement, it was $1.99. facebook is being investigated by the ftc over antitrust after it settled the investigation to its privacy issues. the investigations continue either way. we want to thank our panel of guests. he is going to stick around to give us analysis on companies reporting, but sarah, giving us context on the earnings that we did get. that does it for the closing bell. taylor is stepping in, where we will have much more on facebook currently trading higher, including looking ahead to tesla. this is bloomberg.

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caroline: live from new york, i am caroline hyde. taylor: i am taylor riggs. romaine: i am romaine bostick. caroline: record highs in the nasdaq in the s&p 500. romaine: the question is, "what'd you miss?" caroline: growth drivers boost facebook, but results coming as scrutiny on big tech grows. as the state of the u.s. manufacturing world has its ability to make money, that is under the spotlight. plus, valuable assets.

the ceo of an investment management tells the firm how she is putting $200 million to work. the facebook numbers are unfolding. not only are they beating revenue, they are taking hits in terms of more money set aside for $5 billion that they had to settle with the fcc. a new investigation when it comes to antitrust. david patrick, author of the book the facebook effect. also, founder and ceo of a platform that crowd sources earnings estimates. i have to say, you can't bet against companies when it comes to continued advertiser lower. the worry about another antitrust investigation coming from a different arm, apparently informing the company back in june, yet more scrutiny can't be good. right.are the finances are explored. they have a unique facility for advertising that advertisers

want to use globally. that is a superb blessing. investors don't think have ever been faced with a comparable company in terms of trying to factor in what is going on long term. short-term they will keep raking in the dope. if you look at the list of investigations they disclose in all the countries, singapore, eu, u.s., congress, justice department, it is a huge list and ultimately, i believe the answer to all this is going to result in lower profits, because remediating the problems they have caused will require a change in the business. romaine: we are getting results from forward, adjusted eps coming at $.28 per share. the estimate was $.30, so they are missing for the quarter, the

full-year adjusted eps also missing consensus. shares down about 1%. we will dig deeper into the numbers and bring you more later. getting back to the conversation lotacebook, we talked a about the potential surprises. we got $17 billion in quarterly revenue, $5 billion that is a third or less than a third of quarterly revenue. these are numbers that are high but manageable. that is why we are not seeing a negative reaction. >> i don't think investors care unless it is systemic to the business model. if you want to make the case that this is microsoft in the late 90's, where you get antitrust issues and that puts a crimp on the multiple for the next 10 to 20 years, i would buy that. but i don'tible,

buy the thesis that this will have an impact on the bottom line. that is why you see facebook toward new highs, where a year ago, you saw investors saying what will that bottom line look like? that seems like it is out-of-the-way and these fines will not impact the way investors feel about pushing the top line to the bottom line. taylor: as we talk about facebook shares, brushing off antitrust concerns, we dig down into a company, even though facebook itself might see user growth growing, whatsapp, instagram, the other components that make up facebook are what investors are hoping on. which one of those is key? what is driving the growth? >> certainly, whatsapp is not driving financial growth at the moment. instagram is an extraordinary performance story, but it is relatively small. it is an incredible ace in the hole for them. it was a brilliant move, if you

look back, they made a great move. however, is a big enough to make a difference? it doesn't matter in the long run if the fundamental way its brand makes money is the same as facebook. this is where i disagree with lee. i do think the bottom line could be affected. i'm not saying tomorrow or in a year, but i will say, society is not satisfied with the prophets this company is making by commanding our attention and the consequences that that has on all of our lives. i predict that that will be remediated and it will affect profits. caroline: at the moment, the growth of this business is coming from asia. when you're looking out additional users, they now have more than one billion active users coming from asia. has not been monetized in the same way and i don't feel

that asia is worrying about privacy and antitrust in the same way. is there an area that they could be focused on? >> the geography thing does come into play, although we are seeing internet becoming more organized as we go. what is going on in russia now, in china, asia at large is a huge area of growth, which i think they will continue to be able to monetize. i completely agree long-term with what you are saying and not only for facebook, i think we will is screwed long-term with that. i think amazon has issues around that. once the consumer is able to take control of the information that it leaks onto the web and how companies advertise to individuals, and basically the consumer being able to grab a piece of that, that will put a

dent in all of the business models of these online advertisers. i just don't think it's going to be tomorrow. the question is, at what interval do you start to knock the multiple because of that? i think you need to start to see some platform and company get that model right and even a small scale would give the market a roadmap to how that can become big. romaine: we will have to leave it there. we want to thank lee, he is staying with us and david kirkpatrick. before we go to break, want to update you on ford, shares moving lower after the company forecast annual profits that trailed most estimates. it also missed on quarterly results. it is blaming a lot of the slump on a decline in business in china. we kind of knew that was coming. the company has said it will be cutting jobs and shifting its business model toward bigger cars. we will have more coming up

later. this is bloomberg. ♪

romaine: quite a few earnings coming. we can start with facebook coming in above expectations. gettingumping up by 2%, closer to the all-time high. paypal beating its quarterly estimates, but it appears they are lowering guidance for full-year net revenue, shares down 5%. ford seeing lower estimates because of the slump in china, then you see the maker of invisible line also guiding lower down about 19%. taylor: we are dealing with earnings, joining us now is bloombergs detroit. chief. and founder and ceo of estimize.

you had a few minutes to look over these numbers. we knew china was going to be the downside to means china was a little worse than we thought. >> it was. also, north america was not so great. overall, shares in aftermarket trading right now, not only missed the quarter but the outlook for the year is less than analysts were expecting. lot, but it is a surprise. they are having trouble in china, but they are losing money. not just that the market is not doing well, ford is not competing well. well in termsoing of market share. they don't have the right vehicles and it is a tough place to business.

ford it's not very good there. they got there late and they are having trouble there now. caroline: we have got tim stone saying we have seen good results in the first half, but there is a lot of work to do. otherwise, it wouldn't be fun. whether axing thousands of people is fun, we don't understand. give us an idea of whether that is reflective of the concerns. >> the question is, what do you expect him to say? that giving the same thing investors feel, which is, that is out of our control. of theo at the whim macro factors affecting these markets that it is hard to blame him and it is hard to blame investors for slinging this stock all over the place and for other investors to say i don't want anything to do with this because i don't have any ability to control the outcome of my

trade here, given that i am right about these factors when i could be wrong about other factors off the board. romaine: when you look at the results today and look back at the announcement ford made a couple months ago about cutting jobs, what is the structure or the future not only of forward, but gm into big automakers? are they just going to have to be leaner operators? is there structural change in the marketplace that will not revert back to what these companies are used to? >> the u.s. car market is softer. even though china is important, they make a lot less money there. when the u.s. is softening, it just makes the attraction in other parts of the globe. in ford's case, you have job cutting they have to do. they have new suvs coming out this year that they have not got to the market yet.

in terms of bringing the business back, with that backdrop, with a softer u.s. market, not a terrible one, but one that requires more incentives for profitability and softer sales, you've got money being poured into things like effect -- electric vehicles and self driving cars, none of which is going to make a profit for several years at the least. you have investment and engineering costs, something that will not bring you much revenue, then your core operations, the biggest markets in u.s. and china being challenging. that doesn't mean they can't make money, but they are going to have to get leaner. taylor: speaking of that, we will be looking at tesla next. thank you both. coming up, the ceo of investment management tells us where she sees markets and the fed coming

next. this is bloomberg. ♪ we're the slowskys.

we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. mark: i am mark crumpton with

first word news. former special counsel robert mueller has finished testifying before congress. he appeared before the house judiciary and intelligence committee today for more than six hours on his forged 48 page report, on russian interference in the 2016 u.s. election, mueller says interference was not a hoax and not an isolated episode. your investigation, did you think this was a single attempt by the russians to get involved, or did you find evidence to suggest they will try to do it again? >> it was not a single attempt. sit heredoing it as we

and they expect to do it during the next campaign. warned there should be a more robust effort to protect against future interference. adam schiff says investigations will continue. >> your report for those who have taken the time to study it is methodical and devastating. it tells the story of a foreign adversary sweeping and systematic intervention in a close presidential election. that should be enough to deserve the attention of every american, as you well point out. mark: former intelligence committee chairman devin nunes called the hearing a hail mary attempt to convince the american people that collusion is real and concealed in the report. among congressional democrats, the russian investigation was never about finding the truth. it has always been a media

operation. by their own account, this continues in this room today. pressingn, numerous issues this committee needs to address are put on hold to indulge the political fantasies of people who believe it was their destiny. testimony,rlier jerrold nadler asked mueller, did you totally exonerate the president? muellerpride -- replied, no. boris johnson is vowing to leave the european union on october 31. he wasted little time assembling his cabinet, appointing a foreign secretary, a new treasurer, one of the most senior jobs in the cabinet. the former banker and x home secretary is the first ethnic minority politician to hold the post of chancellor.

-- steven barkley is keeping his job in the government shakeup. puerto rico house leaders say the governor will not resign. he will be impeached. he has vowed to remain in office despite weeks of massive protests. hundreds of thousands of perjury can have been outraged by his obscenity laced online chat between the governor and his advisors and they protested for nearly two weeks, demanding his resignation. 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 am mark crumpton. this is bloomberg. caroline: thank you. we want to get back to the earnings. facebook have been trading higher after hours. as we look at the facebook share price, it had been as high as five cent -- 5%, it is now 1.5%

higher. muddyinge -- there was of the water on the back of another $2 billion being set aside for the ftc settlement announced today. another investigation being announced by the ftc into antitrust on top of the department of justice investigation already announced. digest, but with active of 2.4ising, in excess billion on a monthly active basis, this is -- romaine: you mentioned earlier paypal hit a record high. at the close, you can see that being peeled back after hours. second-quarter earnings largely came in line with estimates, but it cut its for your net revenue forecast. new range is below the consensus estimates by analysts.

shares down 6%. below 10 for the first time since july 10, this comes from our detroit. chief. it is about the for your guidance with china lower than expected but north america at the whim of slowing economic growth. full-year adjusted earnings are coming in lower than expected and full-year guidance adjusted well below analyst expectations. ford as well heading lower. romaine: stocks did close at a record high on growth. investors looking past week economic data and mixed corporate results. that's get a take on the market. joining us is the chief executive officer at the you excess -- executive management. you come here on a busy day. markets are doing well, but you see that it does seem to be a market that is starting to split

a point -- apart in terms of winners and losers. not the rally that we once saw. when you are talking to clients to get a read on your business, what are you hearing with regards to be fear of the market? strugglingare really with what to do. when you think about the fed and the pivot and seeing interest rates go down, clients have this tension of needing to stay invested, needing to earn some type of return, whether for a pension or for wealth clients, but fearful that equities look overvalued, i hear about downgrades, i get scared. we have that pivot about, what do we do? to some degree, people are saying are equity markets ahead of fixed income and while it has tightened a bit, i think the answer is yes. that is another example of how you are seeing a dichotomy in terms of what markets are

telling us. caroline: therefore, are you telling your clients stay invested? take a longer-term perspective than on the individual day? >> yes. our core view right now is that the stock market has progressed nicely, however there are still opportunities, large cap within opportunities.em there are pockets that you can still earn the returns as well as our core view that this is a midcycle slowdown. fed responded aggressively with the pivot to tightening financial positions, so we are not projecting near-term recession. this is an environment where you want to keep dry powder, you will see corporate credit challenges, but nothing broad-based. a little too early to get defensive. >> i like how you talked about the diversions between equities and bond. equities near a record high, yet bonds touching lower.

do you put some of that cash to work that you were talking about? do bond deals rise up to catch up with equity prices or do equity prices fall to match a lower for longer scenario, which the bond markets are pricing in? >> what i think we are going to see, not unlike the global financial crisis, we had a lot of liquidity in the system. we have the ecb making rate cuts potentially. there is a lot of reason to believe that this could continue. when you about equities and dividend stocks, i think you are going to see this happening for a while. that being said, what are bond markets telling us? you see that the bond market believes the fed is going to tighten. i believe they will, to be

proactive, because if you are the federal reserve and you look at japan, at the ecb, you don't want to risk it, so i think they are going to err on being more aggressive, so ultimately, you will see the yield curve steepen out, stable credit spreads. that doesn't necessarily mean bonds and equities can't stay at strong levels for the rest of the year. i have heard from a lot of equity investors when you talk about valuation, they look at credit and say as long as that is giving us the green light, we don't really care with the multiple is. do you see any real risk or any outsize risk in the credit side of the equation? >> within credit markets, no. there has been a lot of becussion around triple risky and leveraging in corporate america. is that true? yes.

however, it is overdone. when you look at triple be corporate's, we are seeing a pivot out of cfos to be more responsible about delivering. thereo-date, over 5%, deleveraging balance sheets. that extends the credit cycle. andave a large business , theytime we turn around are talking about the death of leverage loans. we don't see that. certainly, you will have areas like retail, that is natural. concerned about middle-market lending and edc's. there is not a lot of transparency. when you see the capital raised in private markets and in some pockets, what they are paying, they look a little rich. the unknown thing if you are chairman powell, you don't have a lot of transparency on who owns that and what is the extent of the risk. >> thank you. great

conversation. coming up, clinging to power. calls for the government -- the governor of puerto rico to resign continue to grow. now, they are saying impeachment will begin if the governor improves -- refuses. this is bloomberg. ♪

taylor: resign or impeachment, that is the message from pretty rico's speaker of the house, giving the governor hours to resign. carlos mendez is a member of the new progressive party, saying lawmakers expect him to resign this afternoon. i spoke to the head of fixed income about the political risk

pretty rico investors need to keep in mind. rico investing is not for the faint of heart. individual investors should really be cautious, because those politics are maddening. islor: joining us now michelle, who covers puerto rico. is heard it there, investing maddening, given the type of political risk that is so hard to gauge. we now have perhaps some calls that we thought he was going to stay, now if he stays, there could be impeachment. how did all of this start? ago, a couple of former officials were arrested in an alleged federal corruption probe. they were arrested and the very next day, all of these leaks came out of these chats and text messages between the governor and his aides. they were profane and vindictive

and people took to the streets. this really angered them. they felt it was the last straw. they want him out. he could leave at any moment. it could happen within minutes or hours. romaine: is that going to solve the problem or is there a more systemic issue with the government? >> they have been in a recession for well over a decade. it is a two-year bankruptcy process already and they are looking to restructure debt. that will continue, but obviously, all of the political trauma on the island doesn't help the situation. we had thehen governor on a couple months ago talking about trying to entice investment, to improve infrastructure, has that come to a halt? >> it certainly has slowed down. from what we are hearing, it is hard to get business deals done, hard to get real estate deals

done. cruise ships are skipping san juan or other ports in pretty rico because of the thousands of protesters on the street, which is wonderful to see. then, there is this economic effect as well. taylor: i want to talk about the price reaction. hedge funds, institutional investors, we have a terminal here, even some of these sales, you reach a technique -- a tentative agreement so not a lot of agreement either way. what are the investors saying about the political risk? >> it is interesting. we haven't seen a dramatic price change in the bond and what investors feel is that they have seen a lot over the past two years with pretty rico. they know the process will still

progress regard this of whether he stays in office or not, regardless of who is governor. caroline: thank you. always great to get your expertise. now, we look at the timely topics of top technicians. today, abigail, what about gold? >> joining me is the great -- actually, i have breaking news. caroline: tesla coming out with second quarter adjusted loss per share. the loss per share had been expected at $.31, so much more than had been expected. not as big as some of the most extreme estimates, but still, we see more model three being delivered. many wonder about the crushing impact that might have on profitability. cash equivalent coming at $5 billion. that is versus about $2 billion

in the previous quarter. cap x went down about a quarter of a percent. taylor: we are still waiting for shanghai factory. here is another big headline. cutting forecasts for the year. there has been pressure between the balance of investing and capex versus turning a profit. we heard elon musk talk about how he wanted to be cash flow positive. the balancing act we are starting to see here between capex investing in the company versus turning a profit. about $2that number billion is the forecast. $2.5revious forecast was billion. 9%.line: revenue is up 50

overall,, cutting that this is a company that continues to flounder as to whether it can support profitability when they are hitting record deliveries. let's bring back lee. you look at the estimates from the sell side. have a brace themselves for the loss? >> they missed on both sides here. even against the estimized numbers, which are usually more accurate. problem, which is that they can't really put up positive cash flow numbers at the growth that he wants long-term. he needs a balance sheet so he doesn't get himself into the bind he was in a couple of quarters ago. it leaves the stock in a weird place with investors saying, why do i want to invest in this company?

romaine: that is the first thing that jumped out. increase or come in above projection, but that came at the expense of capex and other investments. the whole point was that he was going to get up to scale where the number of cars sold would be enough to fill the hole that he needed. what is next? what is the next model or the next thing that he can turn to and say, this is what will drive our profitability? >> investors need to look past that to what is the existential business model that investors are going to want to invest in from here forward? it trades at a huge multiple relative to other car companies. not a cart is company, allegedly. >> that is the whole point. when is it going to be not just a car company?

he says all sorts of things about a robot taxi business, but if you look at the technology, the guys that i trust, they are still talking about 10 years maybe for this kind of stuff to be seriously commercialized and i just think he is out of rope with investors to get the kind of multiple that he is going to need to support all the weird stuff that goes on with that company. headlines,ting more one of which is along the theme we have been talking about. tesla positive net income in the third quarter and working to boost deliveries sequentially and annually. what is the right mix between volume and having a price where you can be profitable? at one point, you need to lower the price to increase the volume, but then you are not profitable. what is the right mix?

>> the right mix is something that he will have a hard time putting in play, which is just go for growth. if you look at other sectors of the economy, especially private companies, i am not saying that it is good, that everybody should be doing it, but it is happening all over the place, which is just throw money at the problem and growth at all costs and convince investors that you can put so much revenue on the board that the economics will work out. the problem is, no one is going to give him the balance sheet to play that playbook and i don't know if there is another playbook that gets him what he wants. caroline: on the bright side, free cash flow is improving. sayingour reporters is tesla ended the quarter with $5 billion in cash, the highest level in his history. this is good for the bondholders, just not the stockholders. romaine: is good in how you run a business, but were people buying into a well-managed

financially responsible company or into the moonshot of electric cars. i kind of want lee to comment on this, because he had news earlier about g.m. scaling back expectations for having an autonomous car on the road. i just wonder, where do we stand in this electric autonomous car nubbers. elon was responsible for at least getting people excited about it. >> separate the two. on electric, it is all coming and the car companies that don't shift are screwed. i really think that is the truth. i have said over the last two quarters, i was of the belief three or four years ago, which now has been wrong, that tesla was in a race with uber and lyft or google to get to fully autonomous before google got

there and put them out of business. i was wrong. nobody is going to get there. it is not moving that fast. caroline: not by 2020 as elon suggests. >> no way. i think the spending from the other companies here, you have seen that pullback because everybody is getting really sober really fast about how close it is. existentialas an threat to their business and they saw investors telling them we are not going to invest in you, are going to pool our money unless you get with it, because youth -- we think it is existential. is goingy, everybody to be right on that but it is further out. taylor: he talked about the health of the balance sheet. we are talking about total debt outstanding. thelatest earnings from first quarter, the point being that i think you are arguing tesla could be tapped out of the

debt market. when do they need to go back, raise more money, tap the debt market? can they access that menu -- that market when and if they need to tap investors? >> it was probably a year ago that we had this conversation about tesla running out of money, can they raise debt and the thesis on tesla was they will not be able to raise money. that was always wrong and i said it was wrong again and again and it turned out that it was wrong. thesis was the growth and the demand had fallen off from the trajectory. going forward, he is going to be able to raise capital. thoughttion is, if you -- if he thought he was able to raise enough capital, he would be going for a more aggressive strategy and as we can see, he is not. he has to think that there is either not enough demand for increasing the production of

cars, or he just doesn't think they can get the execution right to throw that much at it and ramp up. either way, it is a tough story for investors. caroline: as one of our auto reporters is saying, they have confirmed the delivery result. they didn't do that in previous numbers, but they see up to 400,000 vehicles this year. thank you for sticking with us. always great to get your expertise. ecb announces its fleet division. taylor: i am taking a look at economic data. the numbers for jobless claims come out it 8:30 eastern. romaine: amazon and alphabet report their second-quarter earnings. taylor: "bloomberg technology" is up next here in the u.s.. romaine: have a great evening. this is bloomberg. ♪

emily: i am emily chang in san francisco. this is "bloomberg technology." coming up in the next hour -- >> this is a watershed moment in privacy governance. emily: u.s. federal trade commission or noah phillips joins us to discuss facebook's record $5 billion penalty to put privacy violations behind it. facebook has announced it is being formally investigated by the ftc on antitrust.