the reaction and markets today? happy federal reserve with the values it got? he hit it out of the ballpark for what they were trying to do. he doesn't want to have an impact on markets right now. there are times when he does to boost asset prices. we saw that with ben bernanke. the actual intention of those programs were to boost asset prices. intended, a qe program to calm things down in the repo market. i think the non-reaction is what he was up for. scarlet: discussion of the program has left equity indexes little changed on the day. we have the s&p and nasdaq each move in less than 1/10 of 1%

even as volume, trading activity was higher than the 20 day average. romaine: we expect earnings including microsoft, faceless -- facebook, tesla. >> those three names all closing at record highs. we have got a pretty high bar. scarlet: let's dive deeper into our action. again, i have copper on my mind. this ten-day chart, copper now down for a tense day in a row, the longest losing streak ever on record for copper going back to 1988. more than 10%, a decline of more than 10% that is the worst stretch for copper. in more than five years, all of -- dr. copper, maybe not

everything is as well. take a look at copper and copper in jan the s&p 5 -- take a look at copper in orange and the s&p 500 in white. since the start of the coronavirus, we now have this correction. a huge divergence. you have to wonder whether stocks might just follow copper down a little bit. the ishareslook at dividend etf. the lowest in about two months. holding in this etf. it has been on a downtrend all year, and a big reason, it is described as a high dividend etf. that dividend yield is a lot lower than it used to be. is new that7, it

low reached in december. it was actually the lowest yield since 2012. still comfortably above treasuries. to its owned history, a very low yield in the high dividend etf. i am taking -- taylor: i am taking a look at shares of facebook. we do know -- we do know they are looking to add about 35 million new monthly users and the company is looking to come out with good earnings. political ads come all the olympics, all of that is going to have strong numbers for facebook. in the meantime, i want to look at a chart here that i am showing in my terminal. a lot of analysts had highlighted the compressed valuation. they are expecting spending to continue given that we are in an

election cycle. if the strong ad environment continues, you should see the multiple expand. romaine: thanks. microsoft earnings coming across the wire. he much a beat on all the top line. the intelligent cloud revenue, 11.8 7 billion, a 27% year-over-year increase. personal computing, which was expected to decline, that is up. and business up 70% year-over-year to $11.3 billion. q2 revenue, 14%. 151 versus a 108 average estimate. scarlet: this was the stock that was already at a record high before it came in. remember, this was an earnings report that included a $10 billion pentagon contract which

was bigger than expected. amazon did not get it and is now challenging. azure you look at the cloud business, acceleration from the prior quarter. we continue to see microsoft excel in the cloud business. still with us, luke and matt. scarlet: let me just jump in. facebook came out with results. fourth quarter eps -- numbers eps than higher expected revenue. almost 21.1. analysts were looking for 28.89. this is again for the fourth quarter. add revenue higher than the anticipated. a stock, as you can see, off by 7% in after-hours trading.

fourth quarter revenue basically meeting estimates as opposed to knocking it out of the park. romaine: i am a little surprised by the share reaction. it was kind of a low bar. active users, 1.6 6 billion. monthly active units, -- monthly active users, 2.5 billion. you are looking at some of the beats we tend to see on users slow down a little bit, moderate a little bit. perhaps nearing saturation which puts a focus on some of the other properties, whether it is whatsapp or instagram. >> these are the key numbers, how many users are coming to the site, what the ad revenue looked like of course, investors will be looking forward to that call. scarlet: consensus number was $2.53, so that is a beat. fourth quarter revenue not beating by a wider margin

perhaps accounts for the -- >> now we will back our guests. so, matt, i do want to ask, you look at these reports right now, microsoft continuing to come in strong at the end of 2019. we constantly heard that the leaders cannot continue to lead. you look at microsoft today and apple overnight. is that still the case? matt: it will be interesting to see how facebook does. this was a stock that was underperforming over the past two years, yet it is bumping up against its 2018 i. a, it has to -- it has technical juncture. if the stock can break out, we will see how this earnings call goes. if it can break out from here, it will have a lot of catching up to do.

overall, it is a narrow rally. if these stocks start to fall by , especially the uncertainty surrounding the coronavirus. luke: growth names, your apple, facebook. the most on record going back to the start of the new millennium. if you are looking for a way in which you can say, how can we , stocks, yields so low this is kind of your neural rally from the big cap to tech mega names. that is w you do it. romaine: you had i guess a brief inversion of a couple of stocks on the yield curve including the

three-month 10 year, which is still inverted, as well as the three-month one year. you can say pretty much the same thing as you said last year, that the inversion of these curves is not necessarily sending an acute signal about economic growth. if what we heard from the fed today is what i think we heard -- romaine: does it send a message about consumer sentiment? luke: most certainly. if you look at what did sink, it was the transports giving up some of their gains, the banks. coming back to the funneling of the rally, that is one way to see it. scarlet: is that a worrisome trend for you, looking at different parts of the yield curve flattening and parts of it inverting? yes, it is a warning

signal. everybody has decided all of a sudden that inverted yield curve does not matter. i get a little worried about that. we have not only treasury market rally and the yield curve inverting, but you have gold, when it dipped in mid july, it did not that much at when the stock market continued to rally. a lot of new money comes into the marketplace at the beginning of the year. the market is running, i have to stay with it. but i'm going to take a lot of that money and be less aggressive and put it into utilities, which are incredibly overbought. put some into gold, some into treasuries. people are not selling to come into those defensive areas but they are putting some new money in those areas. scarlet: thank you so much. we are looking at facebook shares falling on its results while microsoft is climbing. that does it for "the closing

bell." " is up next.iss? this is bloomberg. ♪

from bloomberg world headquarters in new york, i am romaine bostick. sarah: i am sarah ponczek. romaine: the dow, the nasdaq, and the s&p party much closed flat on the day. no major changes in policy or language. the fed signals that current

economic growth has monetary support. the world health organization: an urgency -- world health organization calling an emergency meeting. and a price hike? appusers of square's cash may be willing to pay more for the service. you up-to-datet on some of the earnings that have been crossing the wire. microsoft pretty much beating across the board. two q revenue at 36.91 elgin dollars. the cloud business was up as a whole about 27%. azure business was up on the revenue side. it looks like investors were expecting a little more growth when it comes to add revenue as well as user growth. eps, 155.

the estimate was for 114. lam research, they are also beating both on three q revenue, three q adjusted margins, as well as shares up about 5%. let's turn back to what was happening about five minutes ago with jerome powell and the fed keeping the key interest rate unchanged. that was expected. fed chair powell did say uncertain she's remain. thatere are some signs global growth to be stabilizing mid-2019.ining since concerns remain including the coronavirus. romaine: no one was expecting much, i don't think we really got much. what is the fed trying to tell us?

>> trying to tell a nothing to see here, nothing really to worry about. they have put many things on pause. if the data continues to perform as it has been doing up until now, why wouldn't they continue having a relatively boring message of saying, we are sailing ahead relatively steadily so there is nothing to do in terms of the upside or the downside. sarah: heading into the fed eating, there were a lot of questions about the balance sheet, asset purchase plans. what is new from what we learned, whether it be from the statement or powell and the press conference? >> we did not learn that much. the main thing i have been putting weight on, they are beginning to justify why they are undertaking the review. he did emphasize three different ways of saying, we do not really

understand very well inflation and we don't understand why it is so low. perhaps this is an important motivation and important reason for us to be thinking, maybe we should be changing our framework, changing the way how we communicate about things, and how we talk about things. yourne: we want to get thoughts on some technical matters but we want to get you some breaking news from tesla. q4 revenue, up 2.2 percent on a year-over-year basis, above estimates. cash on cash equivalents. that is up 18%. quarter over quarter, the estimate was for a cash equivalents of $5.06 billion. companyhis was a already up 35% this year. some calling the stock in ludicrous mode. to see right now, the shares are moving higher after this, it is

pretty telling. romaine: we will dig a little deeper into this and they are saying they are seeing 2020 deliveries above 500,000 units. as we get more information, we will bring that to you. we want to get back to our discussion on the fed. deutsche bank international economist standing by with us. i want to talk about some of the more technical matters that came statement, i guess just talk about what is happening on the shorter end of the curve. that was sort of significant. does the fed still have control of that benchmark rate given what we saw with the move overnight. >> absolutely. they are signaling clearly that they know what the challenges are. and exudeto make sure confidence that we are on top of this and we know what we are doing.

also the way they communicate both in the statement and press conference, the liquidity provisions, that this is something that the market should not be overly worried about. generally speaking, from a macro perspective, we are talking about trade war uncertain the, election uncertain the. there was really not much to see other than those important finer details they adjusted today. are back to talking about uncertainties, continuously talking about inflation. we saw the rally in bonds. stock really coming off their highs. do you get this sense at all that the markets are starting to worry about the growth picture, especially with the fed bringing up uncertainties like the one you just mentioned? >> now we have the phase one deal behind us.

the next question, what will happen with european automakers. all of these uncertain she's combined have probably been -- uncertainties combined has probably been a big reason why capex spending continues to show a downtrend. the fact that it continues to go down relatively quickly is somewhat worrying when you think about the components of gdp. if one of the components continues to decline, we are a little bit worried that these uncertainties come a little bit of a risk in the outlook overall. romaine: one thing in the backdrop of this, just how important the fed is to the economy, the market. that you look at asset prices you are getting a lot of price inflation. do you think the fed is doing

appropriate for the economy? >> the problem is all this liquidity ends up in financial assets. stock prices at the highest level basically ever. credit spreads are narrow. capex spending is slowing down. financial conditions that are super easy, you should see a lot of gdp growth. issue, if yous can create more than 2% gdp growth, you start wondering what will happen if the stock market starts going down a little bit. romaine: always love your insights. deutsche bank's chief international economist. a brief recap on those earnings. the main headline, the company saying it sees 2020 vehicles exceeding 500,000 units.

point fourth quarter, one -- pre-much a beat on some of these cash flow metrics. as far as delivery, it appears that they are coming in slightly above what is expected. from new york, this is bloomberg. ♪ .

sarah: hey recap on some of the earnings that have been crossing the board. really a bonanza of earnings. you can see right here, facebook really taking a hit right now after the close, down about 7.5%. we did see some slowing growth. there's been questions about the

saturation in north america as well. romaine: the 25% increase in revenue actually represents the slowest ever quarterly sales growth for the company. sarah: microsoft blowing it out of the water. the azure cloud business really just surging year-over-year. we continue to see growth. microsoft higher, tesla as well up 7% after the close right now. right now, the world health organization is considering an emergency declaration. all this as many airlines are suspending flights to china, sun as far out as march. here with more is bloomberg's shery ahn. on you get us up-to-date what the numbers look like? shery: global cases of 6000

affected people. in china, 5974. really interesting, more infections than the start of the outbreak in 2003. the death toll has risen to 132, so not surprising that you have the who now reconvening to try to reconsider this international alarm. who is saying that the death rate is around 2%. compare that to sars come around 9.6%. romaine: we did get a reopening of hong kong markets and we got . reaction shery: we are seeing a lot of catch-up when it comes. the hang seng index, now at the weakest level in about seven weeks. still, we saw a lot of

bargain-hunting and higher-than-expected volume which helped with limiting volatility. not to mention, we saw the rebound in the u.s.. really chinese property firms listed in hong kong taking a head. the ceo saying they are being advised to work from home. also, all nonessential china travel. shery: tencent, toyota, all extending the break until next week. sarah: really quickly, what data point can we look to that might show the first results? shery: we are now looking at those statements coming from the companies. also the travel airlines now.

romaine: our thanks to shery ahn. from new york, this is bloomberg. ♪

i am mark crumpton with bloomberg's first word news. senators spent two days questioning president trump's defense team and prosecutors, democrats or make a final plea to at least a few to call witnesses in the impeachment trial. a showdown vote at the end of the week on whether to call more witnesses is up for grabs. the lead house impeachment manager adam schiff told senators that they need to hear from former national security advisor john bolton sooner rather than later. from hised to hear

former national security advisor. don't wait for the book. when wait until march 17 it is in black and white, to find out the answer to your question. senate majority leader mitch mcconnell is working behind the scenes. defeat of that motion would lead to a quick wrap up of the trial before the state of the union address next tuesday. mr. trump today signed into law a new trade pact with canada and mexico, sealing a political victory that could help neutralize democratic attacks on his record. on one of mr.vers trump's core campaign promises, to replace the clinton era north american free trade agreement that the president says has drained the u.s. of jobs. pres. trump: everybody said this

was a deal that could not be done. we got it done. today, we are finally ending the nafta nightmare and signing into law the brand-new u.s.-mexico-canada agreement. house was able to get bipartisan support by adding labor safeguards and offering protections for drug patents. it offers new rules of origin for auto parts and additional protections for internet companies. no country in the world is fully prepared to handle a major disease epidemic or pandemic. that is the grim conclusion of the latest global health security index. the report finds national health security is "fundamentally weak." 13 companies are prepared. the u.s. is first, followed by the u.k. and netherlands. china ranks at 51.

the emergency mitt -- the emergency committee will meet again tomorrow to decide whether the coronavirus should have been declared a public health emergency. u.k. parliament has approved boris johnson's brexit deal. that paves the way for the u.k. to leave the european union two days from now. many say that the fight over the deal was the easy part. over the next 11 months, the u.k. and eu will argue over the terms of the post relationship -- the relationship. 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. romaine: there is a coronavirus still causing disruption for a lot of companies. apple saying it will close to more stores in china.

delta temporarily cut u.s.-china flying. we had a headline from microsoft saying they are restricting employee travel in certain areas of china. theh: this is as we await world health organization meeting coming tomorrow. we do want to get you a quick recap of those facebook earnings. we look at monthly, daily active users, they did come in right in line. at 21r, revenue coming in point dollars. it is the lowest quarterly growth rate on record. for more, we want to bring in david kirkpatrick. what is your initial take away from these reports so far.

>> all of these stocks eat predictions. this was better than -- beat predictions. this was better than that. i think the reason is more or less simple. this company is in the most precarious position because they are just so in the crosshairs of regulators and public concern all over the world. everything they do is under the kind of scrutiny that companies seldom face. i think if their growth seems to be slowing a little bit or of people say that is happening. the company's earnings are good. their growth potential is good. but the stock is still not trading like its peers. romaine: there is a sort of argument here with facebook that no matter the kind of regulatory

issues, whatever user growth remains, the ad dollars will follow. sure, they missed results today but we are still talking about a 25 percent revenue growth. >> i sort of agree with that. the punitive side of myself wishes i didn't but they are doing great as business people. i still don't think they are doing great as pr people and policy and government relations people. they are getting pushback all over the world. question, i think the sentiment about this company even among users could shift if the policy problems got worse, if they work perceived as, say, aiding the illicit election of donald trump a second time. who knows what americans might say about using this service after that? at $616 per trading

share. he said that you would have not bought a slat those levels? at what point does that change? >> it is not an analytical stock by. uy.is a religious stock b elon musk makes things happen that nobody believes to be possible. you have to give him credit. their ability to navigate the u.s.-china trade tensions and even in the midst of it, open a giant factory in china that is expected to could -- expected to totribute significantly their sales, that is amazing. the techif you look at companies in general and the leadership. mark zuckerberg was revered for some time before the privacy issues.

but elon musk is in a different category. , he hasas we mock him has some things -- he created something tangible with regard to electric vehicles. my question, how long will he be able to stay on this perch? how long will it be until the big car companies wake up to it? >> they have been desperately trying to catch up for probably a decade. what this company represents, and has been very respectful of that. when it comes to musk, i think the guy has had a bigger picture vision than anyone else from the beginning. it has been about climate change. that is why he bought solarcity.

he thinks we have to move to electric, and that is why he built this company. romaine: just to tie this back to zuckerberg, there was a time when he extolled the virtues of facebook as being more than a business. does he still believe that? david: he does still believe that but fewer outsiders do. it is a mystery how he can sustain it given his behavior, but he does. romaine: this is bloomberg. ♪

romaine: a quick recap of some of the earnings. facebook moving a little bit lower. revenue growth up about 25%, the slowest it has posted on record. a little concerned about ad spending as well.

tesla also beating expectations. 601 in after-hours trading. this was around 300 a few months ago. sarah: pretty unbelievable. atrosoft 5:30 and tesla 6:30. romaine: some earnings we got this morning were on mastercard. they reported earnings that beat analyst estimates. joining us to talk about this and the space is dan dolev. we also want to talk about square but i want to start with mastercard. they attribute it a lot of their results in the quarter to partnerships in the fintech space, the domain of square, paypal. we are now seeing the bigger payment companies kind of move in. companies, these both mastercard and visa, the

next step of growth is coming from partnerships not just in the u.s. but globally. those are very important partnerships because they are understanding that the payment space right now is changing. instead of waiting for the disruptors to come and disrupt them, they are going on the offense. sarah: what does the trend of global payment volumes look like right now? we are waiting to hear from visa tomorrow. does the trend continue to seem higher? payments is a fast-growing industry. global volumes, give or take 10% growth on a global basis. tothe u.s., i single digits low teens. attributed some of the deceleration to the difference. if you think of it on a steady

state basis, it is actually something that tells you a bigger picture about the economy. the global economy is actually pretty solid. been beatinghave the drum on square for quite some time. i think you have the highest price target on the street at 105. you showed there was a little bit more traction now with that cash app. almost did a survey of 200 people. we asked, how willing are you to see another price increase? what we found out was remarkable. people were willing to accept up to 2.3%, a 50% price increase from 1.5% instant deposit. instant deposit drives the majority of the revenue. why is that the case?

the answer is, having access to the banking industry for the under banked and on banked -- unbanked is-- and more expensive otherwise. if they pursue the price increase, that is upside topared to 21 -- compared 2021 estimates. sarah: you have a price target of $105 on square, which implies a 40% gain. maybe they raise fees, you have higher revenue growth prospects, but what else gets us to those points? dan: we do not model the price increase. theet to 105 by applying dcf. one is the seller ecosystem, the point-of-sale that you go to the deli and by yourself coffee. the other ecosystem is the cash

app. on the seller ecosystem, they are reinvesting $75 million of marketing this year. there is a clear correlation between investment in marketing, gross payments volume, and revenue. we expect acceleration and revenue based on this investment. is cash app, that business growing fast without price increase. romaine: what about competition? we are seeing other players chip away at what square ones had to itself. dan: we have surveyed the engagement with square and also payment apps like venmo, chime. it turns out that square is gaining more ground. it looks like square is penetrating venmo territories, and not vice versa. square is getting better over time and penetrating more

territory that were traditionally controlled by other apps. they are also moving up in the socioeconomic ladder. they are not just for the underbanked. so, square continuing to fend off the competition. our thanks to dan dolev. it is time for smart charts with abigail doolittle. this week, take neil look at two of today -- taking a look at two of today's biggest movers. abigail: looking at the shares of apple and amd. one going up, one going down. apple last year was incredible, up over 100%. it is hard to believe that one of the world's largest companies could be a double last year. what do you think is next? >> very successful breakout above that 230 level. right now, we basically hit the

target we have been looking for on apple. our company has a buy rating on this. our analyst really likes the stock. technically, may need to breathe a little bit. ,hen i am looking at this chart there is a gap, the best case scenario, you work your way higher. perhaps you work your way higher into the upper to hundreds -- upper 200's. we have i divergence right here, right now. prior divergence is have triggered some interruption to the trend. they viable dip on apple. goes to about 275, 260. abigail: speaking of fading momentum, andy, last year's best

stock, today down about 7% or so. talk to us about this chart. finally putting in an all-time high. rated stock.buy when it broke out about 34 last year, getting up to that 5250 target seems like a pipe dream but it did it. here's another example of a stock that is bullish bigger picture like apple. maybe a break here. lowe it pulls back into the 40's, upper 30's. abigail: 2018, pollock uptrend. let this into the context of the stocks. chartjust putting out a saying, escalator up and elevator down. it definitely looks a little

nerve-racking. what do you think within this range? >> a longer-term uptrend. a lot more upside can come. the biggest thing i see, we broke out, tested the target of the breakout, that is important, but we also have this gap. 1910 holds here technically, we could see this back. maybe hold 1800. 1700 would be ideal. deeply oversold and provide a great buying opportunity. thank you for joining us, steve from bank of america securities. from new york, this is bloomberg. ♪

romaine: microsoft releasing earnings. we see the shares moving higher

after hours. here to break down the numbers, we want to bring in the seattle. chief for bloomberg news. let's start with the cloud segment can you tell us a little bit more? >> the beat was pretty broad-based but certainly cloud keeps on trucking. i feel like every quarter, it is starting to get a little repetitive. this time, the cloud beat was even more significant. xihave been talking about rep -- about azure revenue growth taking down. a revenue beat that was more than $1 billion, the 10th consecutive double-digit revenue growth quarter for microsoft. know that cloud continues to truck on. where does microsoft office and

windows fit into the equation? it used to be that the two were synonymous but now we focus on azure. >> microsoft office is a huge cloud business as well. office 365, the cloud version of office, has been doing quite well. commercial sales of that product rose in the mid-30% range last quarter. that has gotten increasingly tied up with azure, where you will see customers sign on to officeh azure and the 365 cloud product. windows interestingly had a really good quarter as well. earlier this month, support for the more than a deco -- more than a decade old windows 7 ended. companies who were still on windows 7 were rushing to upgrade. you saw a large increase in the windows revenue base as well.

microsoft has tried to even allow windows to get a little bit of a juice of the cloud transition by combining the office 365 software with windows software in microsoft 365. amaine: microsoft, obviously huge global company, about half its revenue coming from outside the u.s.. did they give any breakdown of what kind of business they do in china? >> they typically have not. a couple of weeks ago at a conference, their president said that chinese revenue is under 2% of their business. significant a very chinese research lab that does come among other things, he a lot of their chinese intelligence work. hood a couple of minutes ago how they might be affected by the coronavirus. she said she would give a bit of

an update but the largest point of exposure was the windows-pc business. in general, it is not a large portion of their revenue from china. nonetheless, they are watching to see what the cdc continues to tell them to do. they have asked employees in china to work from home, canceling travel to china. sarah: some headlines that microsoft is telling employees to work from home. is microsoft going to be affected so much by this coronavirus? from cfoidance i got amy hood a couple of minutes ago was that they do not have massive debts do not have massive exposure in china -- that they do not have massive exposure in china. romaine: don't forget, that

microsoft conference call in about 30 minutes. the bank of england announces its rate decision tomorrow. sarah: amazon and deutsche bank report earnings tomorrow. forine: that is that "what'd you miss?." this is bloomberg. ♪

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taylor: welcome to bloomberg markets. i am taylor riggs in san francisco. aul: and i am paul allen in sydney. taylor: facebook underwhelmed's wall street. plus, tesla delivers. quarterly profits top analyst estimates. 2020 deliveries expected to top half a million as the