caroline: from bloomberg world headquarters in new york and london, i am caroline hyde. joe: i am joe weisenthal. romaine: i am romaine bostick for a little bit of a rally but not enough to finish the day higher. caroline: the rally, all-time high above $10,000 for copper, on my london metal exchange.

bullish investors are swarming. vaccine rollouts, claimant pledges. a global recovery elsewhere from this pandemic bringing higher costs not just for copper but for all kinds of raw materials. this is also a high bar for earnings. certainly, when you look at the evaluations, where we have come from. alphabet being able to really jump over that are and of course share buybacks. joe: i am beginning to think that some of these companies have seen their stocks do really well because they are making a lot of money. alphabet surging over 4%. microsoft also making money. it has had a great run, down 3%. breast down 9 -- pinterest down 9%.

amd chips continue to be on fire. romaine: almost everything we had today actually beat. it is interesting how the market reaction diverges based on the magnitude and what those forecasts look like. who joe: for more on this and the markets, i want to bring in bloomberg markets reporter. this morning, qps totally blew the doors off. everyone crushes earnings but some crush them even more? >> i think it was a 36% earnings beat. i do not think we have heard of a margin like that. obviously this has to do with the year-over-year comparison. the tech earnings, you just outlined how big of a beat these are. i think the key here, they are diverging a little bit. they are both these big tech names.

so what are they trading on? maybe we are at the point where good news is actually bad news for some of these companies. one of the big questions especially after those netflix earnings last week is the idea that we are at a point where there will be slowing growth. we are not just a pandemic company. we can do even more. caroline: microsoft sales climate 50%. maybe just because sales did not rise to the very top of the highest estimate. but google has had a 30% run-up this year alone. is it because it needs to paint forward guidance that looks stronger and also return some money to shareholders? >> i think we will get the answer to that next week -- tomorrow actually. i think if you look at the

margins right now, shout out our producer. he has an options tracker. what you are citing the post market play actually fall in line with the option pricing in particular. the immediate reaction does not seem to be necessarily rallying on the fundamentals. for alphabet, look at facebook or twitter or even tryst. -- even interest. -- even pinterest. if you look at the microsoft side, definitely the cloud computing business was key. but you are not seeing that read through and some of the other cloud reporting stocks. i think that is where you will see some of the difference. romaine: we have some breaking news on humana. the company is actually going to

buy the remaining stake. this is an enterprise value of a little more than $8 billion. this is a push by them into home care. a lot of folks think that trend will last past the pandemic. the company says it will finance with a combination of cash and debt financing. the expectations here were pretty high. i think i saw a gross margin expectation of 67% or 68%. but this is also a company that is still kind of in a transitional phase. they were hit by some of the supply constraints. that kind of affected the results with the xbox and pc gaming business. when you talk about what investors really want, joe kind of said, it is just whatever you

want to call it. but they want to see a growth story. >> absolutely. i think this is where that conversation back to netflix. these growth companies have been so associated with this pandemic bid. they have also been rallying on that haven bid come on this idea that you are seeing a lot of this kind of growth stock may be potentially become value names. this is what they have to prove, that they can diversify. this is where i think you will start to see apple and amazon become key parts of the story. amazon and apple will be telling very different stories. the chip exposure, like you mentioned. amazon also has that consumer spending. if you look at those five tech companies, amazon was the only one projected to actually drop

their revenue compared to the other four. caroline: kriti gupta, we thank you so much. we have some more breaking news. one of the most valuable companies in the world, worth $1.9 trillion, saudi aramco. a multifaceted company. the saudi crown prince is saying they could sell more shares, shares could be transferred to their public investment fund. they could sell a 1% stake to a foreign company. romaine: interesting story. we should probably get some more details on daybreak: asia. coming up on this program, we will continue our earnings coverage. we will discuss the latest out of the cfo coming up next. this is bloomberg. ♪

romaine: alphabet earnings of course are out. $45.6 billion in first quarter revenue. that includes some of the payment and distribution partners. ad revenue docked it out of the park again, particularly on youtube. ruth porat making some comments a little earlier ago on bluebird. emily chang spoke with her. she talked a little bit about the economic recovery and more important, that digital ad recovery. emily: google shares up this year on the thought that this is a big reopening play. when people start coming back to work, that means big bucks for google's search revenue and

youtuber brand advertising. i just got off the call with her about what they are seeing worldwide in terms of trend. she did not offer a tongue more in terms of additional color but did say everything they are seeing is positive. does she expect the behavior to continue? she said, we think it is too early to forecast the extent to which these changes will en dure. the pace of recovery is very different around the globe. certainly revenue and earnings beating it. she used the word lapping. from what we saw this time last year. joe: i joked earlier about how investors like these stocks because they are making gobs of money. some of those might disappear under a different tax regime. what is the potential impact of

tax changes? emily: i asked ruth porat what her reaction has been to president biden's tax plans. she was very diplomatic. she said they understood there are funding needs around the world. we also urge governments to raising revenue in a coordinated way and think there is more momentum to reaching a multilateral solution on tax, which we think would be more valuable and more durable. so, don't just tax us basically is reading between the lines. do a lot of different things to raise that revenue. caroline: yesterday, apple sort of getting ahead of the tax changes by talking about how much it pays in taxes but also investing in the united states.

emily: big investments in cloud. she continued to talk that up. google growing by leaps and bounds. digital market share still much smaller than a ws and microsoft. also talked about increasing investment in headcount and real estate. google had been taking an interesting and different stance in terms of remote work, hybrid work, where it is calling employees back to the office and saying if they want to explore an alternative work scenario, they will have to apply for that. they are investing heavily in headcount, heavily and real estate. even in a hybrid world, they will still need more office space and they will still be hiring more people. so don't expect google to invest any less there. caroline: emily chang, most of

"lumbar technology." starting at the top of the hour, five eastern time. copper rallying towards all-time highs. we will talk about the labor strains that could push prices even higher. this is bloomberg. ♪

caroline: plenty of insight into the earnings after the bell. shares of alphabet gaining in after-hours trading. copper has been on a tear.

right here in london, the metal exchange, nearly $10,000. joe: i forgot my copper $10,000 hat at home. we continue to get various commodity charts, they are going up to the right, record highs, near record highs. copper very close to all-time highs. 10,000. romaine: you can also go for a 4 50 hat. 452, that was the number. joe: joining us, emily weiss. there are a lot of factors behind the surge in copper. we talk a lot about demand. there are also supply constraints. what are some of the factors in terms of how quickly we can get

copper out of the ground? >> we know that the global demand is there and we have seen that reflected. but now turning to the supply side, particularly some of the major suppliers of copper, particularly julie and peru, there are some domestic issues that are keeping investors out of the market and keeping future investment at bay for the immediate term as investors look to see how these immediate political situations shakeout. caroline: let's talk about the clinical situations particularly in chile at the moment. the strike situation. >> currently we are on day two of a port workers strike going on in chile. the miners unions have indicated

they are watching and could potentially get involved. this has sparked from recent moves to essentially push back against recent dips into emergency savings programs. chileans for two cycles now have had the ability to dip into pension savings. they are now proposing that for a third time given that chile is back in lockdown and still dealing with the impact of covid. the government was looking out for the pension funds and how much can be withdrawn. these programs are very popular. this has had a big hit on the president's approval ratings. romaine: they keep pushing this idea that there is a demand component and this will save them for lack of a better phrase. emily: as much as we are seeing these tensions bubble up, there is still a huge demand for these

commodities. essentially, that does impact the growth story. in chile, about half the exports are copper exports. in columbia, one third of their exports are in oil. certainly, the correlation with commodity prices tends to be pretty strong. what we are seeing recently as that some of those correlations are starting to break down a bit. suggesting there is a bit more at play than just the bullish commodity super cycle story. joe: let's talk a little bit more about the demand side. we are having a conversation at this time yesterday about the slightly slowing credit impulse out of china. of course, that could be a potential big source of demand. our signs of demand abating? is there a point where $10,000

copper a ton in london starts creating a little bit of demand disruption? >> i think john made some good points about not the overly concerned about the credit impulse but being something to watch. we now have these other areas that are making up some of that impulse, particularly in europe and the u.s. in the u.s., the plans proposed by the biden administration, all of that is very copper intensive at it will require a lot of imports of copper from nations like chile and peru. the question is, how quickly can they ramp up these productions. and it depends on how the political firemen -- political environment on full. caroline: we spoke with the

chilean energy and mining minister. here's what he had to say. >> in the medium-term, renewable energy, demand for copper will go up. i think that is a permanent trend. caroline: clearly they recognize that the trends are in their favor. where else could pick up the slack? where else could be doing well -- politics does not look as useful in places like peru and chile right now. >> while the politics concerns are real, we are looking at an optimistic outlook for latin america and the second half of this year. coverage side has been delayed longer than we would have liked. going into lockdown, covid has

been an issue. the commodity story provides a tailwind, certainly. balancing out those two, we end up with a situation where there could be this rebound in emerging markets, exporting commodities and generally having high correlations of global growth. romaine: when you talk about the correlation, you also have to talk about currency. the dollar does not seem it will be as big of a bogeyman as some people thought it would a few months ago even with this move we have seen in years. >> that is something that i expect will continue to be in play for the coming months. starting to see the rest of the world growth take up as well as vaccinations. there is a case to be made with the dollar going generally lower

and yields, there is an opportunity for emerging markets and i think there are places that look optimistic. joe: one of the things, it really is a striking, the divergence between virus trend in the u.s., perhaps in europe, where the vaccination campaign is started to gather steam, versus the rest of the world. is there still downside risk that perhaps people are not thinking of? or would you say investors have a realistic take on the situation? >> i think we have seen that downside risk playing out in chile already. they had one of the better vaccination rollouts in emerging markets and developed markets this year. we quickly saw that turn back to

pretty strict lockdowns that are still ongoing. i think there is a lot of caution to be had but markets are forward-looking mechanisms. there's a lot of looking down the line for things that could improve for the better rather than focusing on the medium-term. caroline: emily weis, state street emerging-market strategist, zeroing in on what has been an extraordinary commodity story. if it is not lumber, it is the likes of copper. any other area that is like going to the moon that you have to watch out for? joe: you're absolutely right. there are idiosyncratic factors behind each one. there is the strike in chile. drought for wheat and soy. at the end, all of the charts kind of look the same. romaine: they are going higher. talk about the cold weather in the u.s. midwest.

coffee, sugar, everything in between. joe: cheddar cheese futures actually pretty flat. i looked that up on the terminal. caroline: that does it for "what'd you miss?" romaine: this is bloomberg. ♪ ♪ ♪

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emily: i'm emily chang in san francisco and this is "bloomberg technology." google parent alphabet beating estimates. we talk to alphabet's ceo. her thoughts on taxes, cookies, and the cloud business. plus, a new share buyback.