david kirkpatrick was long on facebook when everybody was killing him. to $30 a share. david: there was no share at the time. when i first started getting excited about them it was 2006. tom: can you get excited about the challenges of the news feed -- can you maintain facebook love? could dislike it a little bit, but the truth is that the upside continues to be enormous. we will talk about china from a number of perspectives during this hour, but the effect that mark zuckerberg went to china ,nd gave a speech in mandarin it is indicative that this is a big opportunity for him. tom: let's get back to apple. walld very carefully the street journal interview, it is a great day for them to stunt the -- to stun the market. it is a company that continues to execute. i'm amazed that the new phones are as exciting as they are. how can they just continue to cycle through these phones? this is probably one of the most researched companies on the planet on wall street. what is happening with suppliers? do you look at that as a read across into the holiday season?

with us on apple and twitter's earnings, david kirkpatrick. thanks for joining us, david. david: nice to be here. going to bewe are talking about apple earnings for whole hour basically. what you looking for, and don't say the iphone number. david: i would save more impressive news from china. apple is becoming a chinese company, basically. the fact that they have doubled their estimates in china the past year is kind of incredible. i think they will continue to do extraordinarily well. i don't think the iphone is doing anything besides continuing to roar ahead. they probably won't tell us much about the watch, but if they did it will be a sorry story. scarlet: is apple a proxy for the aspirational chinese consumer, kind of like copper? david: i think that is a great point. it's amazing how many copycat smartphone makers there are in china that the chinese aspirational customers almost without question preferred the apple iphone. it is a much higher status product they are even then it is here. different shades of gold, really designed primarily for the chinese market wher

emily: so you said a year ago when you spoke with david kirkpatrick at mobile world congress, you couldn't construct a short-term model by which this becomes profitable. mark: yeah. emily: do you have a better idea now? when will this become profitable? mark: no, i don't have a better idea. [laughter] mark: i mean, the reality is just that if a lot of people cannot afford to pay for data access in some of these places, then there probably are not big ad markets and it probably is not a place where it is going to be particularly profitable in the near term. in fact, we will probably lose a bunch of money just because supporting facebook as a service and storing the photos and content that people want to share costs money. we will probably not offset it by making much. emily: you said connectivity is a human right. mark: mm-hmm. emily: you want to do good things. mark: mm-hmm. emily: if that is the case, why not give access to the complete internet? why just a few specific apps? mark: so it comes down to the economics of how this works. it turns out that most of the internet is consumed by r

david kirkpatrick will join us in the second hour of surveillance and will look forward to talking toout our moore and facebook but the jon ferro world. the last few days, the decline in oil is front and center to west texas is $43.49. really for me, front and center. spreads, proverbial mario draghi, the federal reserve over the last couple weeks the debate over a fundamental economic concept. talk to me about how the debate is developed. it too early the morning to talk about the salutes curve? -- the phillips curve? economic models are tested. one of those is the phillips curve and where we are at the zero bound. we are exhausted. qe1, 2, 3, we are there right now. a real doubt about how that will effect monitor -- modern economics and the phillips curve. jonathan: tom keene, never too early to talk about phillips curve. i would join them on "bloomberg surveillance" on the next break. ftse 100 moving to the downside. miners waiting on a. b.p. out with earnings. down but insignificant b -- but a significant beat. 35 points.r up by switch of the board. the currency. big week for euro