and dominoes has seen its numbers decelerate draw mat clay. and the slow down will likely continue given that the company's up against difficult comparisons. finally, the obvious loser is the beleaguered chipotle. it's because of the big health scare late last year. i believe chipotle can bounce back, but for now they are at the bottom of the heap. the company's margin performance measures how much they're managing, food and operational costs. yum comes in first. that's the percentage of sales that they have excluding profits. that's despite tough -- that's very impressive. darden comes in second with 180-basis point increase. new management came in there. even as they're expanding from a much lower basis than yum. third place goes to restaurant international. i put them up higher on the list, but for the last 18 months, bubur burger king has b rebounding from when it invested heavily in remodelling, and those are paying off big time now. but the company hasn't notten back to where it was three years ago. first place goes to mcdonald's. the to

growth has decelerated.w by .9% during the second quarter and it was a rebound from the first. guest: rents are bouncing back a bit. but if you look at it on a year-over-year basis, you are seeing a bit of a deceleration. it thisds to happen and point, it becomes hard to sustain rent growth. bloom is off the rose as supply starts to flood the market. it takes a little wind out of the landlords sale to push increases on to their tenants. matt: still ahead, the business of drones -- it's not just for the military anymore. now investors want in. that story is next. this is bloomberg. ♪ matt: you are watching bloomberg markets. i matt miller. drones were once reserved for the military, but now that they are gaining in commercial use and just for fun, the entire industry is changing rapidly. companies are working feverishly to thought technology that make them cheaper and cost-effective and investors are noticing. it's good to carol massar and cory johnson. i'm joined by mark siegel, he's very much involved in th

scarlet: in terms of the deceleration, have we see the trough or is this quarter or next quarter likely at? gina: the next quarter should have been the trough. looks like we will print better numbers this quarter than we did the next quarter. that is the consensus expectation, where we are supposed to see this big hockey stick growth. it will be tough to meet those now wetions in 2017, but are in a turn in the learning cycle. think -- >> thank you so much for that. coming up, an exclusive interview with imf managing director christine lagarde. what she thinks of the brexit vote, politics, and money. that is up next on bloomberg. ♪ the shery: time now for the bloomberg business flash, a look at the biggest business stories and the news right now. 400 shell employees are planning a july 26 strike that could jeopardize production at some of the company's oil fields in the north sea. the union representing the disgruntled workers who voted overwhelmingly for a walk out says the 24 hour strike will be followed by a series of other stoppages over the coming weeks. the strike is the first in t

you have global growth that continuing to decelerate. global trade that's listless and as well you have this overriding concern about the political risk within the euro zone and also the monetary policy across the globe and how that is going to affect the financial system, which you've seen very little effect on the true economic system. >> you've seen the effect of government yields. we're looking at record low in the 10 year treasury. >> absolutely remarkable times. you haven't had this type of rate environment ever since the -- in civilization so this is affecting all risk markets across the continuum. we don't think we're getting paid well. >> how does that dynamic work. you have worker low government yields, but the stock market has rofred 90% of the brexit losses. >> it's monetary policy back into the loop of the financial system. has very little effect that goes into earnings and what will happen here at one point is earnings will become -- well, they have in the united states been flat to down. that's an ominous sign. you want to

him it has not decelerated. innovation has not decelerated.re, close to one and a half. that is outside the tenure of some economies in europe. look at the spanish 10 year, the italian 10 year. i am not sure that is a safe haven environment. i talked about as well as rates that are quite modest. alix: traditional correlations have broken down and s&p does not seem to be tracking what is happening in the oil markets, for example. the last few days have been a little bit of a different story and it has not caused a lot of havoc in the u.s. what is the correlation that you wake up every morning and look at? >> we now have the new equilibrium. six months5, oil ago, if you would have told people instead of the 30 and 35 range, we are talking a 4250 range, most people would have said that is ok. i wake up every morning at fundamentals. that u.s. equities have not decelerated. in fact, the job creation has continued, the growth engine of modest but continual growth of the overall economy has continued and i think investors are still looking at the va

bottom line this is a business as you guys said, completely decelerating. maybe they beat this quarter and the stock pops, i don't know but i would sell it on any pop at this point in time. melissa: yeah. jason, i mean the other big stock coming out today is apple. that is a story that is all about the iphone. what do you think about that one? >> i want to talk about twitter too. listen, apple is a buy. apple is not going away to use another phrase from the financial industry, apple is truly too big to fail. it is not going to 70, it is not going to 60. if you're an owner you got to hoed. if you're not an owner you need to buy, follow buffett's lead. it will not have a big rally whatever the earnings come out as, okay? over long-term apple will evolve just like it has and will continue on its bull run. melissa: i think twitter is coming out right now. we're waiting for it to come out. looks like it might not be terrific news. steve, before we go to lori, give me your take on twitter as a target. who do you think would be interested? >> ever since microsoft

certainly the signs of a deceleration? interesting thing that samsung at this time around was they tied the debut of their new flagship phone just right. they get a little bit earlier, precisely during the period when iphone sales were starting to dip. and so i think that managed to capture a lot of consumers, who were looking for something new and shining, advanced. and samsung delivered it to them, and just the right way. stevenson, bloomberg tech reporter joining us there on smartphones. manus: up next, what next for britain? is there any other conversation we're having today? right here, europe following the brexit. we will speak to the ambassador to the eu, on bloomberg. ♪ manus: you are looking at a shot of new york, futures indicating at 29.3 on the s&p 500. apparently unchanged. 6:49 in london. 1:49 having a late cocktail in new york. let us to the bloomberg business flash. here is rosalind chin. buy and: denanon is to company, including debt, that represents a premium of 24% on the 30 day average closing price. pa

of the government intends to do is create balancing to control the deceleration.gate what seems to be an accelerating trend. >> it could get worse before it gets better. the rates onay enough. they have to give more flexibility to the banks. they provide more credit eventually. economy, supply-side reform taking ways. there is a window of opportunity now. the fed will probably raise rates. time.ly now is the right you have to make a move in the coming months. what do you think about this stock rally? is or anything that's going to keep this rally going? you could continue to see people chasing yield bearing. coming to china, first of all outperforming are the traditional names. is a traditional market. further list and segment forming. people continue to yield. the money has not flown back. which means the money continues to yield. >> all right. we're going to leave it there. check ofa quick headlines. net income of $427 million for the year ending in august. that is 25% from the forecast in april. it he wrote of the overseas earnings. includes $351look million. b

however, you know, i think the market should expect some deceleration in revenue growth in the secondof this year. and that's something the management hinted on. and we just think they're pretty much pretty close to the fair value estimate we've given them which is around $120 a share. so, again, given that we expect some deceleration in revenue during the second half, and 2017 may not -- revenues may not grow over 45%, we're being a little more cautious. but certainly a very solid company and again hitting on all cylinders. >> victor, unpack the stock for me maybe addressing some of ali's points and my question which is if i were building a sort of core portfolio of technology companies, i would want facebook as one of them for sure. >> yes. clearly. and i think they are position for users coming out of twitter they're struggling. facebook doing well, instagram doing well, i have a $150 price target on the stock. yes, there was some nervousness and questions on the performance, i think the numbers will decelerate but the numbers will be strong. i think the fears about snapchat destro

>> one interesting piece of startups thatell at his 5-10 looking years down the road of decelerate ath, negative interest rates, depreciating yuan, bad loans rising. he sang be prepared to cut cost peoplesh -- cut people. ♪ hey how's it going, hotcakes? hotcakes. this place has hotcakes. so why aren't they selling like hotcakes? with comcast business internet and wifi pro, they could be. just add a customized message to your wifi pro splash page and you'll reach your customers where their eyes are already - on their devices. order up. it's more than just wifi, it can help grow your business. you don't see that every day. introducing wifi pro, wifi that helps grow your business. comcast business. built for business. ♪ rishaad: a look at our top stories. asian equities retreating on a worsening out look. leadingrials shares declines, crude holding below $45. makes corporate earnings, imf downgrading its forecast globally, including japan. numberst gaining after topped estimates down to cloud commuting -- computing. ceo has been changing focus to cloud and product to the services as tra

you can see the growth rate obviously expected to decelerate.will be interesting to see if youtube is holding its own or if it's a sign facebook's aggressive expansion to video is a huge priority to the company and starting to change consumption patterns. scarlet: it's a really big part of the company. it's the one that gets everyone the other thing is surge is the big moneymaker. anytime you look at it, youtube is minute. there's a know generation who will be .nplugged, not cable users youtube is my 11-year-old primary source of program content. he watches all kinds of things on their. -- there. there is some good content on youtube. joe: i learned how to barbecue watching youtube. you mentioned also that is still a search company. talk up the number of search queries it is getting. that will be another area to watch. amazon movingith ahead of its results, it disappointed investors in previous quarters when it lost its numbers. it's not as committed to delivering that net income. an interesting gamble today to see investors. for a long time, in

with google, slight deceleration in paid search spending. 10% compared to 13% the last quarter.th google and alphabet, how do they expand beyond their typical search ads? what is happening with youtube in particular. ads on google maps, that might be coming. how much money with that bring in? can google continue to make this transition from desktop to mobile? andd: amazon looking more more at third-party sales. amazon does not break out a lot of specifics. we don't even know how many people are using amazon prime. we do know that they are expanding incredibly fast. they've added 13 fulfillment centers in the last month. this always concern about the profits being squeezed. they have had hit products like amazon echo. david: more on alphabet and amazon's earnings on "bloomberg west" tonight. this is bloomberg. ♪ >> welcome to bloomberg markets. on bloomberg world work coders -- headquarters in new york, good morning. facebook and groupon shares surging after recording better than estimated earnings well amazon and alphabet continue to trend. we will preview their results after th

yvonne: there is a chance there is -- that the deceleration could lose control. what we saw earlier, we saw in august and january as well that the pboc sometimes tends to miscalculate what happens with its policies. we talked about it yesterday and this morning. finds the people are more sanguine with the decline so far. yvonne: i want to bring in stephen engle. it looks like this is a very surprising bounds. stephen: yes. $13 billion up to $3.21 trillion u.s. they had to defend the currency after having the sharp devaluation last august. but there were a couple of things that play. obviously, the yen's rise against the dollar, the fx core, cash pile was up 7.3 against the dollar. also, the pboc and authorities in china obviously -- not obviously, but it looks like they are not intervening as much. they are letting the currency depreciate. glad stephen brought up the young angle. we don't know what the percentage of the holdings are. but it plays a central part in the fx reserves. so that probably contributed to the increase in fx reserves. the going back to the

emily: you have a plan to quadruple sales by 2020 but revenue growth is decelerating and now we are seeingisteners fall as well. why should we trust your plan question m? million people coming to pandora every month and that is growing. a huge investment in a backend advertising infrastructure. we are getting more efficient. as we look ahead and expand the product and diversify from advertising to subscriptions, we will start balancing the business where we optimize for advertising but also for subscriptions and should grow 20% year on year and the business is in good shape. emily: you have acquisitions of your own. what will be the key differentiator? apple is revamping its music business and spotify is there, what will make a difference? >> we have a lot to bring to the table. this will not be a metoo product. 30,000nd services are songs but pandora brings a lot more. when you come to the on-demand service, we can curate and make the on-demand experience easy and an intuitive as we made radio. it will magically appear in your service and be easier to use a map of the problem to solve now

paper has so far navigated a gentle deceleration instead of a hard landing.ost accounts, china is in an -shaped recovery. firmed up,rices has helping to ease deflation at the factory gate, providing lower real borrowing costs. this chart shows how the state has stepped up, fixed asset stimulus more so than the private sector. you are seeing the private sector remain more cautious, while the state is getting involved with more asset injections. spending up fiscal 19.9% year over year. we will get some other june numbers this morning, including investment, still at 9.4%. the state is picking up efforts to bolster the economy. factory output may also indicate 2slight dip from 6% in may 5.9% in june, but essentially the growth rate has been steady. check on the pulse consumer, retail sales may have dipped below 10% growth for the first time in a decade, but the drop-off is miniscule at the most. we are expecting 6.6 percent gdp growth in the second quarter, but difficult to sum up this economy with one number as some regions are still growing at double digits, wh

you look at the earnings season coming in and exclude you arend financials, seeing a continued decelerationand profits growth over the last couple of quarters. just so you know, i do like health care and technology. go to a question scarlet asked earlier, the relationship between ultralow nominal yields bonds and as you said relatively high valuation. how close is that relationship? ,s the yields and bonds plunged by automatically the multiples of the market have to go up, do you buy that is a thing? >> it has been interesting to see the wave of phone calls we are getting from people dusting off their own academic books talking about the fed model. , itou look at the fed model first got published by the fed in 1997. if you look at that chart, it is a 94% correlation. right after that was published, the correlation went massively negative. these fundamentals worked until the people started focusing on them, then stopped working. people are grasping for reasons to be bullish on stocks. are the only ones they can hang their hat on. when you look at the fed model in the various forms, they will

emily: you got a plan to quadruple sales to $4 billion by 2020, but revenue growth is decelerating.hy should we trust your plan? have 100 million people coming to pandora every three months. we have made a huge investment to the backend advertising structure. we are getting more and more efficient. as we look ahead to the next period for us as we expand the product and diversifying from advertising and subscriptions, balancingng to start a business not just for optimizing but for subscriptions. the business is in good shape. emily: you make some acquisitions of your own, you are working on an on-demand service. what is going to be the key differentiator? what is going to make yours different? tim: we have a lot to bring to the table. for starters, this isn't going to be a b-2 product. product.to be a me too -- ora brings to this when you come to pandora's on-demand service we are going to be at curate that and make it as intuitive as we made radio. the music just magically appears in your service and will be easy to use. which i think is the biggest problem which needs solving right

to industrial reduction manufacturing, they have suggested they have seen the worst in terms of deceleration but they are not pointing too much acceleration either. financials continue to see revisions to the downside. it has been a big laggard over the last three months. i do not think we have a lot of momentum in the upside given global economic growth. david: we have a finance minister meeting, and jack lew met with his italian counterpart. sense of the european financial sector now or the financial sector writ large? how fragile do you think it is? >> outside of italy, they have done a lot to shore capital in the last few years. if you look at the ecb serving data come whereas the u.s. five years ago, banks started lending again. earlier in the recovery of the bank cycle, they do have that capital. outliers like italy and greece in some of the other european banks that are still suffering quite a bit. a lot of capital and they make loans pretty well. the key comes down to declining long-term interest rates, that is the issue. it is margins and not the quality of loans. it is what they ar

sign, are looking for one that seems to be at least not decelerating as much as it was.ut asia, at least based on caterpillar sales. you can see that chart. vonnie: i love that chart because it is how things are going. ira member some of them jpmorgan who was a caterpillar analyst explaining that. now there is secondhand the sales continuing. that is partially why sales are down so much. beautiful, love it. mark, welcome back. mark: the only thing that will pop up is me, he'd go this is a chart created by robert. it is a risk on, risk off gauge. he has taken it from 2007 to 2016 and you 2007 as the peak, as -100. you can see what has happened in between. basically, this chart is based on 18 indicators, six equity indices, five sovereign bonds, to currency rates, to commodities and a measure of liquidity. it is a wonderful chart. in day after the referendum the u.k., we had a drop of eight points, roughly similar to what an devaluationyu and august 1 nothing like the levels we saw in 2011, the height of the european sovereign debt crisis. absolute basis we saw minus seven

. >> it is decelerating. they have got to figure something out. blames the slowdown in overseas sales, and they do not break it up by market, so we cannot really see what effect they have on the u.s.. anchor: thank you. i am joe wiesenthal. what did you miss? suffering a blow, an international tribunal set its efforts to assert control over the south china sea, and joining us to discuss this issue is our co-anchor betty lou. betty: this is the worst case scenario. they basically sided with the philippines and said on all counts, the chinese do not have that majority control of the south china sea. is disputed. it is not just the philippines but the others that have surrounded. for those who have long observed , this really was not a surprise. themselves, have no part of this tribunal. to address the philippines on this, and they have said no, they will not, so we asked hank greenberg about this, and this is what he said. it upsets many things in that part of the world. there are some serious negotiations. what is the choice? the negotiations. what

fresh pet has faster groechlt it's decelerating. it's not something i can get excited about.'s start with jm smucker. it makes meow mix, a host of others. now smuckers is giving you a 17% gain. it's up 5.5% since last month. hen hen henry shine. it accounts for 27% of the k company's sales. especially it's given a platform for animal products. i got one pour name. c echle centa. toys, pet carriers. where do i come down on these? we need to choose between blue buffalo. i told you to avoid them. it turned out to be a good call, because they went into free fall. it was about growth. and people didn't want it. right now, i like blue buffalo. trading at 30 times next year's earnings estimating. how about the more diversified, like jm smucker? this one this one's fritriblgy. at the moment, i'd recommend smuck smucker. i would buy the rest when it comes down 5% to 8% to get a better basis. as for central garden and pet -- you invest if blue buffalo or smucker or henry shine. a fabulous place to invest on any scare, whether it be from the fed or overseas or from the p madness of the

if it fails to decelerate, it will slingshot pass and disappear into space.ed a engine burn to put juno into orbit. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: ok, looking at the japanese bond market. the rally still continues, yields keep falling. the five year yield has fallen to another record low, -.325%. ,wo-year yields also dropping -.31%. that's what we have at the moment as this rally continues. we see those fields under further pressure. response to that inflation number earlier, more signs of inflation for the japanese economy. that's the reaction on the fixed income markets. , boomingtial arts across asia. one company is closely associated with its success. it has become asia's biggest sports media company and the biggest promoter of this fast-growing sport. our southeast asian correspondent has more on this. >> you know what? they have huge plans. a $1 billion valuation, and they are betting on 4 billion people in asia. he joins us this morning. huge plans. >

revenue growth is decelerating. listeners are falling. why should we trust your plan?eople -- 10000 million people. we have a huge investment to backend advertising. our rpms are growing. as we look ahead to the next time for us as we expand the product and diversify from advertising and subscriptions, we will start balancing a business where we mise subscriptions. -- optimize subscriptions. emily: you bought cardio. you are working on an on-demand service. there are so many on-demand services out there. what's going to make yours different? tim: we have a lot to bring to the table. this is not going to be a me too erotic. -- product. that's not for an average consumer. pandora rings an enormous service about which we know a ton. we will be able to curate that and make the on-demand experience as easy and intuitive as we made radio. it will be easy to use. i think that's the biggest problem that needs solving right now and a lot of data and a huge audience, it's going to be differentiated in emily: do you plan to have a tiered system? tim: you start with this foundatio

how do we decelerate that and what is your initial assessment of all the reactions? >> i think what we have seen is a more horrific example of the long-standing war on cops that has been going on rhetorically in this country. they feel under siege every day having been said the lives. it has been echoed by president barack obama unfortunately. that officers are engaged in the race based policing. that is a light charles. officers can tell you they are facing a level of hatred on the streets now that they've never seen in their careers. the job is basically undoable now. i think what we have to start doing is telling the truth about why they are in high crime areas. it has nothing to do with race. has everything to do with extension waited levels and criminal offending. the officers are the one government agency one most dedicated to black lives and unfortunately president obama in his speech last night repeated the falsehoods about the criminal justice system in the police that are poisoning the atmosphere on the streets that officers are facing today. >> charles, if

growth is decelerating and now we are looking at the listeners fall, so why should we trust your planve about 100 million people who have come to pandora in three months and it is growing. and we have made a huge investment on the backend with advertising. we are growing and we are getting more efficient. as we look ahead to the next time for us, expanding the product and diversifying from advertising, we are going to start downloading a business where we are optimizing not just for advertising, but for the inscriptions. and with 20% year on year, the business is in good shape. >> you are working on an on demand service, so what will be the key differentiator? there are so many of these other, apple, spotify, what will make yours different? guest: we have a lot to bring to the table. this is not a youtube product. on-demand services are basically about 30 million songs. that is not what you need for an average consumer, pandora brings an enormous base on which we know a ton. when you come to the on-demand service, we will be able to iterate that and make -- curate that and make it int

that's a deceleration from the company's 50% plus loan growth over the previous four quarters.pal's the steadiest. next, we need to look at the default rate. it shows how good these lenders are at screening out deadbeat borrowers. square capital had 4%. on deck ck came in at 5.7%, but that's bad. paypal doesn't specifically provide douefault rates. you get a 1.2% douefault rate. when news broke that americans were moving into the small loan business base. i don't now, you have to wonder, maybe they can make a dent in the industry. i don't know. next up, on deck has real problems. for example in recent years, the company has securitization, they chop them up into loan-backed securities. however, lately demand for the securitization market is cool. that's causing it to keep it on its balance sheet. worst of all is the funding issue. if on deck can't sell their loans on to someone else, it's much harder for them to find money to make new loans, which is why they slashed their 2016 loan origination guidance from 45% to 50%, down to 30% to 35%. ooh. >> the house of pain! >> somethin

we see growth decelerating.t is one of the reasons why be and am surprisingly cut interest rates last week, to cushion that. and korea, highly export dependent. rishaad: thank you so much for joining us. we're going to take a break. donald trump nomination making headlines. republican presidential candidate now and it is official. kicking up quite a bus on social media. music ♪ rishaad: donald trump has officially garnered the presidential nomination. trending on, trump twitter and the gop convention. trump himself has tweeted it is a great honor to be nominated by the republicans and of course he is saying his name quote, america first. not surprisingly, the democratic candidate hillary clinton coming through and she has not been too pleasing for donald trump. saying the republican party that form is so hateful you would think donald trump wrote it himself. rishaad: laterally donald trump, but his wife has been accused of plagiarism. not get to talk about it last night but my little pony seemingly also entering

if it looks like the growth is decelerating, i got to tell you, it looks like what's at the bottom of this. it's like driving a fast car right into a retaining wall. the moment one of the these companies stumbles, the stock could fall faster than you could ever imagine. kwns the great chipotle dropping more than a quarter in a day. when in july of 2012 it reported a disappointing quarter that suggested the company might be more vulnerable to economic weakness. the bottom line, to build a portfolio that can work in every sector, it's worth if to pay up for a company that's continuing to accelerate. once the momentum of a stock slows down, it can shrink for ages before it bottoms. and most people's patience can't hold out that long. you need a fast grower, preferably a secular growth stock. stay with cramer. & in a w held back by compromi, businesses neethagity too one thing & anher. compromi, only at&t has the network, to hcompanies be... peolopen & secure.rs >>> tonight, i'm focussing on different types of stocks, and showing you how to put together a portfolio diversified by strategy

the acceleration is turning to the celebration in europe and that could -- deceleration in europe andhat would be significant as well. amanda: there is a case to be made that the conditions in the u.s. economy, the u.s. fed should have hiked rates this week. would you agree? are they too slow to normalize? alan: laid out conditions in terms of tightening, at least the end of last year, you saw financial conditions in a certain place, the kind of indicators he would look at in terms of equities, financials, etc. they have all performed remarkably well. you could say that there is a pretty strong argument they should be tightening and seizing the window, i think, because the international backup doesn't always a line like this. china is in a good place right now. europe is quieter as well. japan was leaning towards easing. the international backdrop is great. joe: you mentioned japan, and people called it a disappointment in terms of directly what they did. we did see some yen strength but we also saw the nikkei rally and the banks rally perhaps on the fact that boj did not go further i

these are mall-based stores which explains the deceleration. i think you can make a come back.ew management at victoria's secret. i wouldn't write this one off as long as the ceo's still running the joint. one of the least discretionary groups, the health care. some of that is because washington went to war on higher drug prices, that was led by hillary clinton. brx, some of it's related to the busted pfizer allergan merger. now, there were still pockets of strength in health care, which is why the whole health care sec for was down. and the medical device makers. consider the top five performers in health care and you'll get what i'm talking about. at mum one, strooiker. another med tech is up. thanks to the minimally invasive defib later. the first best, one of our old favorites, st. jude, bye, st. jude, it's agreed to be acquired by abbott labs. what about the fourth strongest, care to guess? it's medical technology company heart valve that can be installed via catheter versus cracking the chest. noticing a pattern here? while the best-performing health stocks were medical d

we worry brexit decelerating gdp growth will accelerate churn of netfl netflix subscriber growth. >>f the uk plays it right, they could become an even more competitive economy than the eu. that would be easily done because there's so many things about the eu that are so not competitive and they could tell me, i think, be far better off as a result of having left the eu. the short-term, there's this indecision, but at some point, people start to look at a uk economy, which is fairly competitive and the rest of the eu, and look how we're talking about italy as a perfect example. there's still a question about whether or not this ultimately has become the big flashing warning sign of a threat for the eu, do they survive brexit, and i don't think we know the answer to that yet. >> we won't. and to your point, to prove the uk economy hasn't proved of the decision to exit, and still may not take place for two years, it's conceivably, it's going to be a while before anybody can make that judgment. >> but already you have senior uk officials talking about let's lower the tax rate dramaticall

some times he was rebellious, but he's saying the growth decelerated and he's the reason why i believehe stock is down because a lot of people felt that maybe he would change his mind because some of things that were happening that were better. so the stock is going down. there's a lot of people involved in ibm. i want to solute him. his work has been great and he is very rigorous and he's hurting the stock. there's absolutely nothing going on other than the rigor of the work telling him they can't make the suggested haecond half. do i disagree withton m tony? he does more work than i do. >> "mad money" tonight? >> >> we had a guy that rallied whole -- to see if the rally is still or not. if you look at the bank stocks, it's still on. if you look at everything else, no i love this show. and by the way, david faber and i are friends. >> yes, i would say that's -- >> even if you destroyed -- >> that's an underestimate. >> we'll flash that on the screen every time you guys talk. >> they're friends. thank you from twitter saying that you like me. >> i said love. that's why we can't engage

the emerging market growth pace is decelerating some, but the emerging markets throughout our fine.ove-trend episode has been developed-market driven. it is the developed markets as a tell went, not a headwind. we fear with brexit you will get into a headwind situation all over again -- below trend growth. that trend is slower, less pronounced rebalancing, if you will. scarlett: we also have to consider the unexpected supply disruptions that helped to lift oil this year. we cannot forecast more destruction, but that could play unit with little at these levels. yeah, because as a forecaster, you could also say you have to be kind of cowardly about disrupt -- disruptions. we are forecasting them to revert to normal in nigeria, venezuela -- other places. yes, on star that in the second half of the year, early next equally, perhaps even more supply disruptions. absolutely true. shery: thank you so much for your outlook. energyart, global analyst at credit suisse. scarlet: coming up, why the recent equity rally could just be a head fake. this is bloomberg. ♪ this is bloomberg markets. i

., we think that this data point we just got confirms there is perhaps what could be a lasting decelerationthe company has discounted the potential impact of market saturation in the u.s. as well as competitive pressures. however, i do believe those are becoming more and more factors, which is why we kind of took a more cautious outlook, though we think that the longer term outlook is still pretty decent. if they can navigate the second half of the year we think better things can happen in 2017 and beyond. >> michael, that price sensitive, that lack of elasticity, is that a macro-econ thing? or just simply people widening their diet of platforms and reaching some level of fatigue? >> there's definitely some degree of that. if you look at what's happening in the market in general, we'll see a reduction in the dollars spent on, and more -- that could include netflix, hui, and i think thereof be but it's interesting, we did a surveying and found that the majority of those in our survey suggested they would be willing to subsorb a price. obviously in the near term they need to keep things where

>> there's no question that we've seen a deceleration of growth in the u.s. for netflix and it's no surprise because we know that there's a lot more competition in the overthe top space but having said that, i think that the netflix story is going to be in and out. domest domestically and 90 million subscribers. and i want to point your attention to the latest news that they have been able to garner that with comcast. that's a very big development which will help them to grab the low hanging fruit and be able to mitigate a potential decline in a domestic subscriber base. >> the distribution platforms have been the quite winners throughout the year. verizon, at&t up 20%. comcast itself our parent company up 15% as netflix lags. do you think we'll be shifting our focus from the content side of things to the distribution side of things? >> well, it's a very different company so it's hard to make comparisons across them. i would say at least as we think about internet distribution, internet businesses that yeah, you have a tendency for one dominant distributor to

additional diversions from the river this is a potential out there secondly, there is potential for deceleration we've talked about with the projects and or also the devaluation of ground water and thirdly, with the non-favorable use of cycled water for irrigation and put money into the kip for direct or indirect for projects that is lining up a couple of items on the agenda for looking at this as as poekt and commercialism is another possibility for supply one that is called out by the figure the transfer for figures not worked and there's another possibility so other considerations the hundred and 84 is sufficient to revolve the palo alto issue one of the things we'll be engaging the customers 4 customers that have a minimum purchase requirement they're well below that they're looking at the demand bouncing back of paying for water they don't have a use for so it maybe ways one of the idea that is suggested those customers mountain view with the part of east palo alto and transfer with that part of new purchase requirements as well so both the pieces there maybe a way to work out and direct fe

.- kuroda took the inflation decelerated.n. that sums up why they will undergo this review, what is not working and what they could do better. david: between you saying how friendly you are with mark barton, i am with alix. jonathan: my vote goes over to barton. barton --k mark barton wins. there is no bias on this program whatsoever. hour, he in the next weighs in on the bank of japan's decision. from new york city, about 34 minutes away from the open. yields lower across the curve. from new york, this is bloomberg. ♪ e jonathan: this is "bloomberg ." gdp --st reading of soft. futures with the ftse 100 down by .4% on the session. dollar-yen, a 1, 2 punch. over two percentage points. in the commodity market, seven straight days of losses for wti. yield front end of the curve in japan, selling off. 10 basis points. we trade at -27 as we come to down to the market open. this is "bloomberg ." ♪ david: we are under 30 minutes away from the opening bell in new york. this is "bloomberg ." punch, dollar-yen. the gdp numb

is decelerating a little bit. that economic growth gap has narrow add bit. fair value and purchasing power may be somewhere around 120 or 125. >> translator: you can . >> just give us a sense of what you expect embassies to end third quarter by the tend of the year, like our investors smart to get in levels. >> i think there's some upside in europe. i think in the uk as discussed we really struggle to see upsides for the ftse given where it's standing right today. a lot of the good news is priced in. >> what about italy if we're talking about continental europe. >> that's if you look at straight ps where earnings are compared to previous peaks, they're down. u.s. is of course well above previous peak. if you think there's a recovery. you need to navigate is the banks and the form of whether it's a capital support or capital injection, whatever, however that takes it shape. that gives people confidence to look back at that system, but that's where the value to us in continental europe rather than the uk. >> do you think there's some assumption in the price he

bernie or bust lane, those critical of secretary clinton or of the party structure, there's been a decelerating of the protests. it was startling last night. i was here with the delegation when people left to their feet and chanting against leon panetta. our sense is there will still be some who has been devoted as any to bernie sanders and that cause who may try to disrupt tonight. but monday was their day to let that energy burn out. we have seen over each of these days a little smaller group, a little less of that energy and i think for many other delegates, less tolerance for that because those who say it's time for unity want to keep that to a minimum. we have these red cards on seats in this section. there's an attachment that says this is a card to create a card stunt. they are asking people not to take them out of the plastic. then over here they are white cards and on that section they are blue. do you sense a theme. perhaps there's a red, white and blue motif that will happen when they get delegates involved for some visual stunt at the end of the evening. just a little behind the sce

emily: $4 billion by 2020, but revenue growth is decelerating and now we are seeing the listeners fallwhy should we trust your plan? mr. westergren: let's start with the base. so, we have about 100 million people coming to pandora. and their listenership is we have had a huge investment. rpm's are growing. as we look ahead, as we expand the product and we are diversifying from advertising and subscriptions, we are going to start balancing business, we are optimizing a good 20% year on year. i think the business is in good shape. emily: you have made acquisitions. you are working on an on-demand service. what will be the key differentiator? there are so many on-demand services. apple is reinventing its music business. spotify is spotify. what is going to make yours different? mr. westergren: a lot to bring to the table. this is not going to be a me, too, product. on-demand services are 30 million songs and good luck. that is not what you need for the average consumer. pandora brings this enormous listener base about which we know a ton. when you come to pandora's on-demand service, we w

. >> the deceleration was unbelievable. 160 miles per hour to 0 in i think about 15 meters. >> one minute everything is extremely noisy. >> think about this. >> chris and i are -- >> keep on it! >> the next minute, absolute terror under water. >> i thought the boat had gone over and over. it just felt like you were in a bit of a washing machine. a dash cam in a cockpit shows the pilots trapped upside down. >> "king of shaves" has crashed. >> liz and will are desperate to know what's happening. >> i guess time just froze. all i could say to will was, could you see their helmets? can you see that they're out? >> there weren't any safety boats in the immediate vicinity, and it was just a silence, and i just thought, james, i hope you're okay. >> but james is not okay. the pilot's oxygen valves are flooding and they have to reach the surface fast in order to survive. >> the drill was that chris goes out through the floor of the boat first. which is now the top of the boat. >> they can barely see each other and communication is impossible. james realizes that chris is still inside the cockpit.

said weaker earnings, higher multiples and what we actually found in periods where earning of deceleratingck pes are just as likely to go up as they are to go down. they're driven by totally different things. people get confused that earnings are the only story. right now with stocks. volatility being really low, the vix being really low. stocks look attractive even if the earnings are really meager so i disagree. >> there you go, jonathan, rbc capital markets. thank you for joining us as we look to friday's session. that does it for worldwide exchange this morning. stay tuned to cnbc, "squawk box" is coming next. choose to smooth. choose effortless glide from side to side. choose knee-loving, underarm-caring, bikini line-bearing. choose venus swirl. with five contour blades and a flexi-ball, it pivots with every dip and divot. choose to smooth. venus swirl. by switching to xfinity x1. rio olympic games show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you? x1 will change the way

the combination of those two factors and lingering on the back of brexit, the deceleration of the global economy should continue to support the gold price. >> jeremy, what is your price for gold and silver? >> it has exceeded our price focus already but with the continuing incertainty, gold has a great future ahead of it. >> we'll leave it there. >>> we have the head of g 6 research staying with us for the time being. >> a ton of you write ng and talking about nigel farage stepping down. >> not sure many would be confident with bojo or farage handling the brexit. a little erratic under pressure. oers saying it is a shame he is gone. he could have contributed a lot. >> keep your comments coming through either @nancy or louisa borenson. >> baking up a storm. >> you want to be in the kitchen. >> last time i baked a cake was 1904. we are celebrating independence day with some sweet treats. thank you is what we say. but we mean so much more. we mean how can we help? we mean what can we do? we mean it's our turn. to do our part. to serve you, for all you've done to serve us. ♪ >>> good morning

you listen to the incredibly rigorous analyst at sanford bernstein who says ibm's businesses are decelerating. so they're going to be hard-pressed to make estimates in the second half of the year. he thinks the company took a step back, not forward in the latest quarter and makes a compelling case to stay negative on the name. >> sell, sell, sell. given that ibm stock had run up i think the balance of evidence went to tony. an upside surprise turned into a stock that was big in after hours but actually fell 28 cents today in the wake of tony's prediction of the upcoming short fall. i thought b plus. tony flunked it. goldman sachs which completely clobbered estimates, company earning $3.72. wall street was looking for $3 flat. the problem is goldman went from 144 to 163 ahead of the quarter. in keeping with a much better numbers that we saw from jpmorgan, citigroup, bank of america. the quarter was good but still not good enough. especially with the controlling of expenses which i regard as marvelous but the street didn't. i swear it was the quarter but goldman deserved an a in my eyes. it was

everything decelerates as it gets bigger. to scott's point, less trouble on the revenue side than on the user side. but trouble on the -- because the trouble -- right. the trouble on the users' side eventually spills over to advertisers when you tell them snapchat video views are a billion and you see twitter's growth rate not quite as good, all of a sudden the advertisers say, oh. the user growth is snap chap. let me focus my attention there. it a risk for twitter a problem, but doesn't have to be a forever problem. >> several big names reporting after the bell. the trades ahead of the numbers, next. >>> all right. today kicks off a huge week for enings. take your positions ahead of the big reports. first up, ibm. reporting after the bell, coming off 16 straight quarters of declining revenue. you know i'm coming -- you're already laughing because you know. because you know. >> what? do we think the 17th time is the charm? >> you tell me. you're the, like the lone supporter. >> actually, you remember i sold it last fall. i ga

quarter as you said but i think as you're seeing in the stock which has ste steadley a fear of deceleratingrowth in the back half of this year. >> goldman says it remains in the sweet spot and crammer says it's one of the growers. mau is 1.7 billion. how do you look at any of the metrics and worry about the growth of this company. >> i think you have to think there's four key drivers of facebook's revenues. i think they were very clear on their call that add load is basically hitting a wall, that they can't push that ad load any further. i think time spent you have to worry that competition is going to pressure them on the engagement side as you move forward and clearly snapchat is having an effect and they've priced us with the growth no doubt but it is hard to believe there isn't some slow down in that user growth as you move into '17 and that puts pressure on ad pricing as you move into '17. i think that's why the street is reacting the way it is and investors are taking profits. we think facebook is amazing but the stock is 350 plus billion dollars that everybody owns and everybody love

fundamental growth, if it is not in allating and likelihood could decelerate in the second half, it makeser to make a case for a sustainable rally. indicators technical are showing overboard levels. -- we we see further not have auld sustainable rally going forward fromere. you very much indeed. inwill talk more about china the days and weeks ahead but for now the focus is firmly on what is happening in france. the country head by the seventh deadly attack in 18 months. what is happening next. this is bloomberg. ♪ guy: welcome back. "on the move"ng here on bloomberg television. bit aboutk a little how the markets have been reacting to the overnight news. of 84 peopleaths at the hands of what appears to be a terrorist. in someimited effect ways. the market has priced in a great deal of the terrorism affect here in europe. we are seeing some affect on the stoxx that could be affected by this more directly. stocks that could be affected by this more directly. -- ist is down by 2.56 down by 2.56%. by 1.4% thisdown morning. let us go to france now, our paris bureau. walk us through how the fre

like china over the last couple years, but like you said, china is massively decelerated here. it is flattened out a little bit. it is still growing. not the hyper growth they had. >> the cash pile growses to $231 billion. >> they fell quarter over quarter. that may be the first time that napd a very long time. >> still, we have a $231 billion cash cushion. why did soft bank go out and buy arm holdings which makes a lot of sense for april toll buy? >> apple doesn't have a history of making the acquisitions. the acquisitions they made over the last year or, so really, i haven't seen much that have panned out. beats was supposed to be the greatest thing to music since the head phones started. and it hasn't panned out. apple still the iphone company. now the real question that investors have was last quarter was that the trough and we're on our way up or is this quarter just a blip? my feeling is that this is probably just a blip base ond some of the broader macro economic figures that i'm looking at. so i think there is enough here that if you're an apple bull, you're going to ge

along with facebook's results, it totally dispels the notion that digital dollars are decelera decelerating, that is key. money to going to both of these companies and that is going to continue, and that is why you need to be involved. in terms of kind of the headline numbers were really great. go through the surface, operating margins expanded 100 basis points from last quarter alone. free cash flow over $2 billion year over year growth. and their own bets revenue actually better than expected. so a really good quarter, and this one's lagged. right? so the expectations were kind of muted and you can get around valuation. ten timeses to 16 ebitda but growth mid-teens. you can get your hands around and why i think people will continue to buy the stock. >> steph, thanks for calming in. perfect day to get your insight on that. >> have a good weekend. >> you do the same. stephanie link joining us. >>> talk about apple up more than 5% this week. you know about the numbers beating expectations. price target again. brian white reiter ha eerating been a positive view on that stock. how should we lo