♪ emily: welcome to bloomberg technology. i'm emily chang in san francisco. markets closing the day down but apple shares rising after hours. what somey beating, expect the company to report. iphone sales were down about 6.7% but not down as badly as some feared. i just got off the phone with tim cook. he told me some indicators about

what they are seeing this quarter and where demand might go. he said the last part of march and the first part of april were very depressed and then we saw a pickup relative to that period in the second half of april. we are not projecting what we will do this quarter because of the lack of certainty and visibility that we've got. apple not giving a forecast for the quarter or the year, but cook sounding fairly optimistic there. amazon earnings also out this hour. amazon shares down after the bell. i want to bring in taylor riggs who has been following all of this. in that interview with tim cook, he told me he believed this pickup in april was driven by some of the new products they have launched over the past few weeks including the cheaper iphone, a macbook air, and ipad pro. as well as stimulus from the federal government and people getting used to, we are in the middle of a pandemic and this is

the way things will be for a little while. what is your take? taylor: great interview because i really think you hit the nail on the head, that no one effectively really cares about january through march. we really wanted guidance on april and how that april was or how quickly we might see a rebound. very good news that perhaps april started to see at least in the second half, a recovery from what you would say was very depressed levels at the end of march and early april. that is what analysts wanted, starting to see when we going to get a little bit of a turnaround? , what's that out for me, net sales coming out better than expected. more importantly, they are boosting share buybacks by $50 billion and increasing the dividend by more than expected to $.82. file,heir massive cast this is their best use of cash. it is re-person touching those shares -- repurchasing those shares. i'm always curious with a

company like apple, with $100 billion of net cash, what is the best use of cash for a company like this? tim cook really provided a look at what the impact covid-19 is having on his business. for example, some areas of the business were doing really well. it really boosted the app store and tv plus, but also negatively impacted the care. given that stores were shut down for most of the quarter. iphone revenue dropped almost 7% year-over-year, but services continue to jump 17% year-over-year, now to a record of over $13 billion. i think more importantly, he's expecting a small amount of u.s. stores to open by mid-may. he wants to start to see when he gets the rebound as people can start to go back into those stores. emily: right. we are going to get a little more into the strategy that he

shared on stores and getting employees back to work. we are seeing apple shares go from positive to negative as investors digest these results. theices surging 17% to record $13.35 billion. but macs jumping 23%, sales down, iphone sales down. ipad revenue also down. if you will remember, president trump said that tim cook told him there would be a v-shaped economic recovery. i asked tim cook whether he indeed said that and he did not directly answer my question, but he said i am not an economist. however, from what i see, i'm very optimistic about how things can go. i think the stimulus that has been done were bold and nothing that will play well. if more is needed, looks like there will be more done. sounds like he is very optimistic about the second half of the year. keep in mind, we are expecting

apple to unveil potentially four new iphones this year, some of which are going to be more than $1000. the question how they will perform in this economy, given the rundown on amazon because investors are digesting those results now as we speak. taylor: amazon getting pretty hard hit in the post-market. when the big concern is on spending. what is so interesting about amazon investors that they forget jeff bezos every once in a while will turn on the spending spigot and not pullback. that impacts probability probability. amazon said the offering and income and the outlook for operating income will be lower. the $4 billion they expected to get in operating income, they will now spend that on covid-19 related expenses. they are now looking at an operating loss in the second

quarter as much as $1.5 billion. investors forget that every once in a while, there is that transition between profitability versus spending. bezos said in his letter, his e-commerce strategy build a moat in the long-term which means spending in the short term. emily: taylor, two fairly different stories. i want to dig into apple a little more with julie of forrester research who joins us on the phone. always look forward to hearing you. break these down. what is the sort of headline take away? we know the revenue was far and away better than expected and that was driven by services and not the iphone. julie: yeah, i think the first thing is apple is not going to suffer as much as some of the other retailers when it comes to having their stores closed. when it comes to consumer electronics, more than 50% of those purchases are made online. we believe the strongest impact

the stores have is influencing the online sales. so many consumers -- 41% of consumers surveyed at shifted their spending from in-store to online since the beginning of the pandemic. a couple of the other shifts we are seeing. we have seen a net increase in the percentage of consumers willing to do things like try contact list payments or digital payments for the first time, almost 20%. while apple did not break out the apple plus tv, when you look at someone like netflix doubling the number of new net subscribers, you have to imagine apple benefited from that shift in spending as well. emily: let's talk a little bit about the supply chain. i always try to get some insight from cook on future products. that is the one thing they never give. but, i did ask whether some of these issues would impact the coming pipeline. we are expecting potentially four new phones to be unveiled later this year. impact -- the

pandemic impacting product in 2020, perhaps 2021 or 2022? he said we couldn't be more proud of our current lineup and excited as ever about the pipeline. he highlighted the three products they have been able to push out over the past two weeks. also said we rapidly built the muscle to run the company in this kind of way, indicating that he didn't seem to see any significant issues in the supply chain and they continue -- can continue to produce and release new products and he is really confident about their ability to continue to do that. to your point about store, the beck question is when will apple reopen stores? apple seems to be an indicator that other retailers might follow. he said by the first half of may, somewhere in that ballpark, think the initial stores in the u.s. will open, just a few. we will look at the data and make a decision depending on the

circumstances in that particular place. we will not be the first to reopen probably anywhere. he said they want to make sure it is more than safe before any stores reopen. they are also planning to reopen stores in austria, europe, in australia as well and they have been learning from china where they already reopened stores. julie, what do you think that means given that -- i am in the bay area. we have our shelter-in-place extended through may 31. it is going to be different across the u.s. and around the world so what does that pettiness mean for apple -- patc hiness mean for apple? julie: i think some analysts have put about 30% of the revenue coming direct from apple and maybe half of that coming direct from stores. certainly, the stores not being open are delaying purchases consumers may have but if we look at the timeline, austria opened up about two weeks ago.

depending on how you want to measure it, they get anywhere between two to six weeks ahead of us in the u.s., but i think one of the things you will see is -- i live in the bay area also -- we are used to walking by the apple store on union square and seeing hundreds of people in that store. that is going to look very different in the future. consumers are used to walking in the stores, getting hands-on displays, they are crowded. there are lots of employees. it is going to be have to be a different future when we look at this in-store experience. when you start to think about consumers not being able to handle those devices, social distancing, masks. it is not going to have the same level of excitement or just density of consumers as we have seen in the past. i don't doubt apple will be creative and find a way to work around that. emily: we also did talk about bringing employees back to work. we will talk about that a little later in the show. i do want to get your thoughts on what i felt was the headline

of this interview with tim cook edges that they are already seeing things start to pick back up. it is not what twitter mentioned earlier today when they reported their results. facebook said their ad sales were flat and has potentially stabilized. cook says things are picking back up but it is this current quarter that is a big concern for where we will see the full force of this pandemic hit, especially coming from the united states and europe. what is your take away from him giving us that little nugget? julie: yeah, i would trust him in what he says because i think the other thing we saw retailers do was cut back on media spent or marketing during this time when they didn't have the ability to deliver that product. i definitely would be optimistic. there is a good product line. as we look forward, the other part of it is apple's big season is still about six months away.

we are expected to see new product launches this fall and the biggest quarter of the year for apple tends to be in q4. there's a lot that can happen. we can absolutely expect to see the economy in the stores reopened by then when the biggest quarter is in front of them. emily: all right, julie ask of forrester research, thank you so much. we will continue to watch the headlines rolling from apple. there will be more color. coming up, we will continue our earnings coverage of amazon and dig in with mkm partners. what he has to say about amazon's first quarter report is next. this is bloomberg. ♪

emily: welcome back to bloomberg technology. amazon earnings also out. shares down after hours. amazon predicting profit will shrink as a result of the pandemic. jeff bezos seeing in a note that these are not normal circumstances. however, the company did say they did higher 175,000 additional workers they had planned to hire to meet demand over the last few weeks. rohitt to bring in a o of mkm partners. what is your headline take away? rohit: everything is good at amazon. are think these unprecedented times and unprecedented times is when they do best. all these they would have other wise made in normal

circumstances, they will throw that into investment for it. a positive long-term sign for investors. near-term, it will be depressed. emily: let's talk a little bit about profit. always had slim margins. but with a profit getting even tighter, does that concern you? rohit: not in the near term. i think the bigger question here iss amazon think there something that is going on? behavior change, or permanent change in their cost structure because of what the world is going through right now. i think that is the big question mark in my opinion. i think what amazon is doing is right for consumers, and what's right for consumers is going to be right for investors over the longer-term. i think that is a good question.

is this permanent or is this something that amazon deals will fade over time? longer-term, everybody wins. emily: what is your take on the workplace and safety issues? obviously, there's still a lot of demand for amazon products. it has been essential in getting us the stuff we need while we have all been stuck in. yet, they've got all this sort of negative publicity driven by worker protests happening across the country. there is a concern with multiple workers at different warehouses across the country testing positive for the coronavirus. obviously, amazon has said it is doing everything it can to make sure the workers are socially distancing and take various shifty precautions but how much of a risk is that to the business, that getting them are stuff on time depends on these workers all being together in these warehouses? rohit: i think that is a very legitimate concern. i think when they are hiring

more than 175,000 people, they need to make sure safety and security and the health of all these workers is maintained. i think that is what they are thinking about doing. what can they do to ensure that? that is the early answer to that. see whether that is coming that is a long-term fixed or near-term fix. i think it is going to cost more money for amazon and that is what they are going to do. spend more to ensure that all , the employeess and contractors are safe and return to work and get all of our packages on time. emily: we are going to continue to follow these amazon headlines as the call is ongoing and bring you any new insights as we have them. rohit, thank you for

calling in. coming up, we will dig into twitter. twitter out with earnings this morning. twitter seeing a steep decline in average revenue, indicating they are still seeing that the client now. i spoke to twitter cfo ned siegel. we will see what he has to say coming up. this is bloomberg. ♪

emily: welcome back. twitter also out with quarterly results today with shares ending the day down almost 8%. twitter reporting a huge spike in users, but not so great ad

revenue sales. the company seeing a steep decline in ad sales through the end of march. also indicating that might be the case for the last and first few weeks of april. i spoke with twitter cfo ned siegel. take a listen to that interview from earlier today. we sawom march 11 to 31, ad revenue down 27%. remember, our business is one that really benefits from events. those are customers events when they launch a new product or service, and the events that bring people to twitter where advertisers come to connect with their customers around those topics and events. as events are pushed out and canceled, that definitely has some impact on us. the second issue that we saw this we are very brand focused. brand advertising seems to be harder to measure and is sometimes less resilient during an economic, more constrained economic environment like the

one we find ourselves today. this is a reminder how important a workaround direct response advertising is and why we have elevated that work to be our number one priority. emily: what did you tell us about april and what you are seeing? facebook says it is flat. you have to be able to share some insight into what we can expect going forward. ned: i will give you two thoughts about this timeframe right now. the first one is it is incredibly dynamic. for us to discern patterns and articulate them publicly, may perhaps put people in a position where they are making judgments on things that are still anecdotes and not data points from which we can draw a straight line. we want to be careful about that. secondly, we think march 11 to march 31 timeframe really gives people a good glimpse of what it has been to operate in this environment. we already in that timeframe saw advertisers start to pivot their campaigns. intuit, they were

advertising the gofundme they have been doing for small businesses. we have been working hard to help advertisers make this pivot. some is happening quickly and other parts take longer. emily: let's talk about users and the fact that the olympics are being pushed back. live sports are not happening. if that continues to happen through the second half of the year, does that hurt the user growth, the healthy user growth that we see? ned: we definitely benefit from these topics and events that bring people to twitter. sometimes those are schedule things like the olympics or march madness. then, there are things like the last dance which so many of us are watching on sunday nights right now or the concert that was on television all over the world a couple weeks ago, which are bringing people together despite his global pandemic or in some cases because of it. there are great audience opportunities for us and ultimately give us the chance to give us a larger audience to

work with for much longer periods of time to show them the other great things on twitter. emily: leading into this, there were some issues with the leadership, concerned about leadership at twitter and you have some activist investors calling for jack dorsey to potentially reconsider running both twitter and square at the same time. i didn't hear anyone on the call actually mentioned this situation so i wonder given the environment, does dorsey get a pass on that? i know you have been really supportive of him every time i have asked you about his double roles. curious that this environment changes the thinking on that. ned: we are off to a good start with the two new directors which join just about a month ago. there are no changes to have jack leads the company or how the leadership team works together. we have seen in the last couple of months as the company has adapted to this shelter-in-place environment, the incredible resilience from everybody on the team. we have talked for a while about

wanting to decentralize our team and making sure we are not too reliant on offices when we are hiring people at the company. we have proven over the last couple of months that we can ship code, we can maintain the surgeon usage, we can help advertisers pivot their campaign. a lot of this is because objects leadership and how he inspired us to close the offices earlier in order to prioritize safety. now to prioritize revenue product. emily: twitter cfo ned segal there. we are getting some headlines now from the apple call. the apple earnings call has been underway while we have been on air. in my interview with tim cook, he talked about how sales of the end of march were very depressed , that they have already seen a pickup in april. apple reporting revenue that far and away beat estimates. iphone sales were down about 6.7%. at the lent amazon shares now both trading negative after

hours. the amazon call will get underway in a few minutes and we will be on top of that as well. coming up, we will dig into this with dan ives to get his thoughts in a moment. this is bloomberg. ♪

emily: welcome back to "bloomberg technology." apple shares going between positive and negative after hours as analysts digest the latest results. apple beating on revenue, coming in $58.3 billion. apple revenue dropping, but not as badly as some. services and wearables driving this growth. i want to bring in dan ives, who has been listening to the call as we have been on air. i did speak with tim cook, the ceo of apple. what he indicated to me is that

after a very depressed few weeks of march, they are already starting to see things pick back up in april. what is your take away from that? dan: that is the key, about what the stabilization looks like going into q2, but more importantly on the others, the dark valley. we are expecting a nightmare on elm street quarter. as soft as it was, i would call it better than fear, especially services. you combine that with what cook's talking about, that gives many investors enough to buy stock on the others have dark valley. apple's ceo has been highlighting the services revenue, especially from the app store, third-party subscriptions. i also asked cook about the plan

to reopen stores, and he said in the united states, he's looking at the first half of may, somewhere in that ballpark, but they won't be opening a huge number of stores right away. in terms of getting employees back in the offices in cupertino, he said it would be at least early june. cook, "i hope and i am optimistic that we will be able to bring some number of people back at that time. i don't see getting to 100% quickly. i think it will be staggered over a period of time." he says they will be doing health screenings, people will be wearing masks, they will be doing social distancing, and they are also considering having people covid-19 test. appleo you think about employees, the vast majority of them still working from home, do you think that has an impact on what is to come?

dan: i think right now, it is hard to determine the next three minutes, let alone the next three months. they are not going to rush into this, especially the stores. when you think about apple stores, those are significant areas for consumers. they need to -- and i think that is going to be the big focus. they need to do stuff step-by-step and don't rush. it is not just about apple. others are going to follow their lead, and they know that well. me they are not releasing a forecast this year, simply because of the lack of visibility and uncertainty they are facing. what is your take on that, no forecast from apple? dan: if you look at the knee-jerk reaction, some will be disappointed. i have heard from some investors

. thein my opinion, it is proof. it would basically be playing a blindfolded darts. when does the global lockdown end? what does the supply chain look like? i thick investors look at the other side of june in terms of the stock. but i think it is a massive wouldainty, and they rather not give guidance and instead give a range that you can drive a truck through. emily: meantime, do you have a quick take on amazon? hiring 175 workers to meet new demand, but they also say profits are expected to shrink. dan: if you look at amazon right

, it continues to be a bonanza, but the cost structure continues to weigh on it. but this is another one. you will see a knee-jerk reaction. i think as investors continue to growthn a lot of these stories rather than the cost, but no doubt, it shows the balancing act that amazon needs to do in terms of topline growth , but it is unprecedented. they are the key archery for most consumers in the u.s. and europe. emily: i also want to talk about tesla. tesla's results out yesterday. you said you are impressed by musk's performance. they say they can still deliver half a million cars by the end of the year, but will they be able to produce those cars? tesla is based in alameda

county, my county. we just got a shelter-in-place order, so that means production at that plant is still halted. elon musk was not shy about expressing his anger on this, saying on the call it is an outrage, it will cause great harm not just a tesla but to many companies. while tesla can weather the storm, many small companies will not. everything people have worked for their entire lives is being destroyed in real time. employees to be arrested if they leave their homes, that is fascist. this is not democratic. to clarify, you may leave your home, but you must socially distance. the county has ordered that tesla employees should not be in the office. what is your take on how badly this production shutdown will impact tesla through the rest of the year? dan: it is a knee-jerk part of

the -- major part of the uncertainty. there is a difference between the way musk talked about the lockdown versus dr. burke, but it is two different business models -- versus zuckerberg, but it is two different business models. no one knows when they are going to be able to produce cars. demand is strong and the profitability is the key of the goals, but right now it is a waiting game. tesla continues to kind of be a victim of that, at least from a production standpoint. i think that is also the frustration that musk and tesla feel. but right now, the most important thing is the health and safety of the workers, and that takes precedence. dan: i also want to get your -- emily: i also want to get your

thoughts on facebook. we will hear my interview with the ceo in just a moment. but facebook indicated they also saw a steep decline in advertising during the month of march, but so far in april, ad sales were flat. that was taken to be positive. they also reported strong revenue numbers. is there anything that leads you to believe that facebook might be more immune to this than some thought, or is it all about the current quarter, and do you see a big risk? thoseeah, that's why comments about april were key. investors are trying to find some rays of light in this dark environment. when you heard zuckerberg, that was the positive, but there is a lot more questions about engagement, but more importantly, what advertising is going to look like. [indiscernible]

emily: dan, you are breaking up, so we are going to have to leave it there. dan ives of wedbush securities, talking about facebook. we are going to take a deeper dive on what happened with facebook. i speak with the ceo after the earning cost yesterday. i'm going to forgive that conversation in just a moment. ♪

reported in 18%

spike in revenue in the first quarter, saying that now 3 billion people are using facebook's family of products, shares surging. they said ad revenue was significant we down towards the end of the quarter, but in april things have been flat. is that a positive or a negative? i asked facebook ceo dave wehner. dave: we are obviously watching the business. it had a significant impact from the crisis. we are not immune to that. we saw a pullback in advertising at the end of q1, starting around when the who declared covid a pandemic, early march, and saw a pretty steep drop off a net revenue. that stabilized a bit. in the first three weeks of april, we were flat versus 2019. i would say we are seeing weakness and a lot of

categories, like travel, auto. we are seeing strength in places like gaming, where people are driving app installs, e-commerce, where people are driving online conversions. that gives you some of the flavor. we are pretty broad-based across large and small advertisers, though. the space right now is concentrated on small business. emily: but geographically, are you seeing regions performing better than others? dave: if you look at our top countries by user, every one of those has some sort of lockdown measure in effect right now, so it is pretty broad across countries. ,n terms of advertising regions we do have an advertising business in china which is export driven. we don't have users in china, but we have advertisers in china trying to reach users outside of china. we have seen a bit of a recovery

in china. some of that kind of masked what i was talking about before with the verticals. a lot of advertisers are in place in areas like gaming and e-commerce, and those are doing better. we did see a more quick drop off in china earlier in the quarter. emily: in the call, you said you see a contraction in the ad industry coming. give me the indicators you are looking at that makes you think a worse contraction may becoming. dave: it is fundamentally. if you look at past recessions, 2008-2009, on a global basis gdp was down less than 1%. but globally, the advertising industry contracted, high single digits. you often see a more pronounced impact of the advertising industry than you see to overall gdp. the consensus is clearly there will be a significant contraction to gdp in q2, so we

are cautious, given that landscape in the past history with the ads business. emily: mark on call said that he sees a downturn worse than some predict. you are the cfo. what is the worst case telling you? dave: we are bringing it down by $2 billion in 2020, so we are taking prudent steps on the expense side. we are certainly prepared to see gdpntraction, a contraction, particularly in advertising industry contraction as a result of this. sales for thed ad first three weeks of april were flat and that showed some sign of stability. investors seem to be optimistic of that, but there is a counterintuitive take. we were speaking to an analyst who said, look at snap, they saw ad commitments double at this time. should we really be looking at flat ad sales as a positive? dave: i don't know.

you can take it as a positive, you can take it as a negative. it is obviously going to be deceleration from the growth we had in q1, and i think everybody in the ad industry is seeing deceleration. large ad very business, and we are going to be subject to the ad market, so i think that's inevitable. emily: you said you are still going to hire 10,000 people before the end of the year. working frome home, what is your timeline to bring them back to work, especially given there will be some government guidance, but you could potentially choose to even more cautious -- choose to be even more cautious? more i think we will be cautious. we are blessed with being able to work from home and being able to operate relatively effectively. we've got 95% of our people working from home. we are able to shift newco. -- new code.

we are able to stay connected with our business customers. we are able to do a lot of the essential functions. we do have employees who have to come in, we've got to have people in our data centers, for instance, so we are focusing on safety for those folks. but we are going to be more cautious. we can do our jobs from home, and we want to make sure shared infrastructure is available for those who do need to go into the office. we don't want to overload public transport and the likes by going back too quickly on that front. mark: emily: can you give any -- emily: can you give any insight on the performance of facebook's family of products? are any of those better positioned in this crisis than to, forand compared example, google search or youtube, which is driven by different things? it's a little bit

different than search for us. we are seeing engagement across all of our products go up, at least all of our big products. while we have seen a surge in things like messaging, in video calling, we have also seen growth in things like engagement with facebook news feed and engagement with instagram stories. we are seeing impression growth ableerms of monetiz impression growth. and we are seeing facebook live doing extremely well. i have used it for doing an exercise program. portal, i think people who have one have really appreciated how effective that product is in keeping people in touch with them. i reach out to my parents every other day just to see how they are doing, which is really special. i think we are seeing a lot of

opportunity across all of our products. emily: one last question, we know that plexiglas might be quite valuable when re-creating open space layouts. with some protection, is there a chance facebook has placed a big order for plexiglas recently? dave: we are looking at how to configure our office space when we get back to the office, and depending on the health , physical distancing is going to be important. nothing specifically to announce on that. wehner.acebook ceo dave i have been continuing to watch these headlines come out of the earnings call. the supply chain continues to hold up and is durable and resilient through the pandemic. we are going to continue to listen to this and bring you more headlines after this quick break and dig into apple a bit

further. the real headline for my interview with tim cook, though, that he sees sales in april starting to already pick up. ♪

a lookcontinuing to take at these headlines coming out of the apple earnings call happening now, tim cook saying the supply has remained resilient. also, they are expecting ipad up throughes to pick the end of the june quarter. decline in iphone sales. some are projecting it could be more like 30%. and a big spike in services and wearables. i want to bring in angelo with cfra. i did get off the phone with tim cook about an hour ago and asked

for his headline thoughts, and the main takeaway is that he is starting to see a pickup in april, despite having a very depressed march, or at least the last few weeks of march. what is your general analysis about how apple has figured here re how apple is going to fa this current quarter? at the when we look march quarter, it is definitely better than we had expected. at the end of the day, not a huge surprise. we did see a nice start to the quarter. that probably boosted revenue better than expected, but apple was kind of towards the higher end of its range before the virus spread that being said, as we look at how the -- the virus spread. that being said, as we look at how the trajectory is going, you saw a 60% decline in broader

smart foreign sales in february within china, and we clearly saw a significant -- smartphone sales in february within china, and we clearly saw a significant improvement with march into april. from what we heard from tim cook, it seems like the worst of the u.s. was at its extreme point in late march, early april, and has improved in the second half of april. that's a positive sign. expect ak ahead, we significant decline on a year-over-year basis. what is spooking the stock is they did not provide any guidance for the june quarter. iphone sales could be down 30% year-over-year. that would go hand-in-hand with some of the commentary provided by qualcomm yesterday evening in terms of the broader smartphone industry. emily: and cook saying on the call right now that for traffic

in china, where stores have reopened, are not back to the covid levels -- pre-covid levels. on when the question things will go back to normal. and our people going to want to buy thousand dollar-plus iphones in this economy? i asked him about that, and he said he is optimistic because of the stimulus and the response they are already seeing to the product they have been able to release in the last few weeks, including the iphone se. but what do you believe demand will be like for some of those higher-and indo iphones that early -- higher end iphones that really drive revenue? about: we start thinking apple consumer base, it's important to note that when you base,t the installed apple continues to highlight all-time record highs in

installed base. the installed base continues to grow. it's just that people are holding onto their devices longer. the smartphone replacement cycle is normally four years, so people are just holding onto their phones much longer. but as far as looking at the customer base for iphone purchasers, they tend to be a lot more affluent in nature, and that bodes very well in terms of, we think, for this environment. when you start thing about the actual individuals who have lost their jobs and where the unemployment rates have kind of increased, it is in some of the lower paying jobs out there. when you start thinking about it that way, we do believe that a lot of this lost demand is more transitory in nature. we think some of the air pockets you are seeing right now will resort and height -- will result in higher demand as we approach the 5g cycle in the fall. emily: we are going to have to

leave it there, but i appreciate your insight. thanks for calling in. we are going to continue to watch apple and amazon shares after hours. we will cover this on bloomberg daybreak australia, next. ♪

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>> good morning. here are your top stories this hour. u.s. stocks post their best month in three decades, although the session ends on a foul note amid corporate results. coronavirus rolls on with japan extending its state of emergency. western europe lands to ease lockdowns as infection rates ease. and