unions they are very wolfy think of the answer to most of it it's all about the vet of course intel center convinced that exist turns old world. second punch up to being more dramatic and vids envelopment might show it is a dick. video who has a lot of nervousness and less constant turmoil of. dollops and. very expressive. but expensive uncertainties. suspense left to authorize is very evident invest second concerto where seen for it's a torch it's a very a it's a gloomy theory but i want to see a section that uses change humming in certain places where the term or whatever streams in the orchestra. and you know all of a much different it's like it's like a very real human speech a real human voice. trying to or. never something new something thing for him to minister. of the end of the whole thing which is one of the. because it would look at least. you know i would be very sure that road. with me to reopen the fourth. would leave the. most of those cars and refer to the. top of where they have to go pacific meeting. with a good reason to be a bit more sensible because that is a gold digg

intel's red and better. joe: obviously one of the biggest macro themes in the economy right now, data center spending, cloud, intel and amazon linked in that way. lisa: intel also getting out of the smartphone business, ahead of 5g, so interesting to see how that factors in. romaine: amazon web services, growth in line at 41%. the online storage number, the number of sales they get selling directly, that rose 10% and third-party sellers rose 20%. most of these are in line with what the street was looking for. caroline: talking about t-mobile, getting numbers from them. earnings,ter adjusted $3.3 billion, ahead of estimates. the estimates for first quarter revenue, coming in in line. joe: to put things into contrast, like i mentioned earlier. 3m down 13% on the day, the worst one-day loss since the 1987 black monday crash. pretty disturbing. caroline: let's go back to the mammoth that is amazon. we're trying to work our way through the numbers, but the market seems to appreciate what they have come in with. more from a professor at nyu's stern school of business. we have seen amazon just go red, scott. your p

and the data center overall, and it's all right, but intel for some reason is underperforming that and josh made the point where are they exiting 5g? because intel can't execute on that is there more execution issue on intel than what would seem to be the surface numbers. >> it's no coincidence that they would announce the exit with 5g and went on their merry way and you see what happens to qualcomm since then i happen to believe that's a big component of it. add a 5g modem and the market liked that, that day and they'll focus on a higher margin businesses to push back on tim and i don't mean to do this, but you have seen intel move on this and you go back to a $43 stock or so in the beginning of the year and traded up to 57 and i bring that up because we're topping up now at the same time of the year that we topped out pricewise last year. >> mobile is really important. why was the stock up that day? because i think investors who have a memory remember the fact that intel missed the entire mobile thing in the -- the entire thing and they wer

. >> what happens is intel -- >> data center >> and chooina. >> you and i will talk about >> i wonderf alibaba is in the same situation did they spend so much they could have a gigantic quarter. it could beg gigantic today. >> i want to talk about uber later on >> we'll talk about uber in a moe moment ford is reporting a better number than it has been. >> hold on >> let's finish on amazon. the stock is up a bit. in some way it was a non-dramatic quarter a better expected number and global effort to bring their deliveries within one day, it is not just north america but where they are going and being focused a first. aws continues to be. what will that business be valued at if it was broken down? 42% top line growth and 50 something percent margins, 9 billion in profits >> you know what they do every quarter? they cut the price of it and they add an lit lalytics. can you imagine going up against them >> will google show up ibm is going to say once they close the deal with red hat, i challenge jeannie romety being able to stay up with it. if nadella is such a humble man, this is coca-co

center -- why are you laughing >> i'm in nvidia that's down big too. >> i know. so it's -- >> i just tease jim. >> it's the pot calling the kettle black timothy in terms of intel, the demand for chips going to data center may not be as robust as we've seen in the past what else do they have for growth they've gotten out of 5g they telegraphed they're not going to build out 10 nanometer. what's the growth here for intel at this point in time? >> i think intel basically grows at the pace that the industry grows, give or take. and sarat made a really good point which is that this is still a lumpy business it's the industrial side of technology software is a breeze you just get somebody paying monthly and they never cancel. it's like the easiest business on earth enterprise, even easier. nobody wants to cancel something once they put it in place because now they're defending that decision to add that piece of software to the company so that's an easy business and it is linear and it only goes in one direction until the economy gets bad chips are different. chips are lumping. two companies reported earnings that fore shadowed what intel just told you. both microsoft and

intel. the company forecast data center group will decline.his unit provides the chips at the heart of almost all server computers. that's your bloomberg business flash. thanks very much. we are minutes away from the open of stock trading. next, the stocks you need to watch at the open, including the royal bank of scotland, rbs beat estimates on profit, but says income could be hit by brexit uncertainty. fancy that in the coming months. this is bloomberg. ♪ anna: six minutes from the start of your equity trading day. let's get the stocks to watch. looking at daimler results. dani burger has her eye set on rbs. what did dime have to say? daimler have to say? >> a poor start to the year with earnings falling 16% after rates fell and costs rose. while that met analyst expectations, we had the ceo saying great efforts are needed to meet the company's financial targets for the rest of the year. that said, we are getting quite accustomed to carmakers giving us fairly negative electrification. a lot of this is quite priced in already. which you can s

that's why there was a bit more sensitivity across the board in terms of intel's numbers there's a big outright decline in that data centerpretty hard to avoid that. tremendous move. it just shows the upbeat way to spin it is this is kind of resetting expectations for the company. the issue is intel still has to spend tremendously every single year on capital investment hard physical fixed investment and they will do that and they kind of willingly do that. it's always been the value play, the slower droeth play so i don't think it has to dollar for dollar affect the rest of the group. but certainly going into may you might have to still question whether the semiconductor stocks had a bit overanticipated the upturn in the cycle. you just don't know yet. >> you look at these year to date gains still among this group, very strong exile in xilinx is up 40% qualcomm up even more than that. significant news nvidia up 30%. what do you do do you sell? lock in those gains now that we're getting? disappointments from intel and xilinx >> what we had is that big v shape. october, the christmas eve, with that 20% sale on stocks, whic

mentioned intel because that was kind of interesting, the caution on the coming half, considering amazon has done quite well. why the week sentiment? certainly, you have to look at data centersry much in the server business, certainly very important for intel, but obviously, they have a broader product portfolio than that. certainly what you are seeing in terms of greater economic caution outside of north america certainly leaves intel exposed. the other elements as well to the extent the expectation is of a stronger u.s. dollar. that will only serve to depress non-us revenue growth and profit for intel as well as other technology companies in the second half of 2019. >> we have seen some privacy companies.th tech how much will regulatory earningsextend to tech in the future? >> regulatory concerns remain significant. while we are getting up to the anniversary of the introduction privacyu of the gdp standards, you are seeing other regulatory actions being announced in north america in the united states. earlier today, new york state's attorney general announced they will be pursuing action against facebook in terms of its violation of privacy standards, so even though we may

what if we move down the food chain in the semiconductor companies that supply the centers that host the cloud, amd, inteltale. the same things yesterday are true today like digitization is still in its early innings for many companies. how about the fact that walgreens, a huge outfit walgreens had horrendous earning, and it's just now beginning to digitize, something i mentioned over and over on the disastrous conference call guys, how come you're so late to digitize i'm not making a clarion call to buy these because sometimes there is some sweeping call that we don't know about yet. it's possible a couple of hedge funds are simply liquidating high stocks don't have any exposure to china. that's a classic rotation because people say talks conclude this weekend in a positive way but we have to now wait the see if we get to downgrade finally, perhaps my biggest fear is being realized. growth funds are raising cash to prepare for deluge of new ipos knowing that the next few deals will be done by firms that don't want another lyft on their hands, lyft being the new term for botched ipo. it makes sense trade

the intel problem cutting forecast and dragging down its rival. right centerdown the most, down the most in -- flight center down the most in four years. steel.n air china down on an earnings story. yvonne: let's look at business flash headlines as we wait for earnings. uber is planning to start marketing shares in initial public offering at a price range of $44 to $50 each. back in value the ride-hailing company at 80 to $90 billion. earlier estimates had been valuations of up to $120 billion. uber is expected to set terms for ipo as soon as friday before a roadshow to market the stock to potential investors. loss: 13% down, the worst since black monday in 1987 for the maker of post-its and touchscreen displays, slashing annual forecast and saying its operating profit fell across all business units. demand out ofging china and says it will need to cut about 2000 jobs. yvonne: oil and gas sales of study in the first quarter as the gaining chinese production helped ease lower overseas output and drops in crude prices. revenue was marginally down last year at ov

and it wasn't probably working for apple anyway intel has other businesses in which it's doing much better in terms of server processing and data center and so forth so it's apparently going to be a move for them to cut even though there's lost revenue i guess that's why intel stock is reacting what positively. >>> we talked last hour about ibm and some of the issues it's having right now is there a bullish case for ibm given what they reported we know you have a hold. what gets it to be a buy >> i think there's a developing bullish case potentially you're beginning to see services margins targeted nv it's about cloud can ibm become more relevant in chapter two of the cloud chapter one was setting up the public clouds. chapter two is helping large enterprises move their enterprise workloads into hybrid cloud and ibm may have more to say to say about that. i'm not convinced about that, but i would say there is at least a developing bull thesis even with the revenue short fall, it wasn't the find we saw over the last couple years from ibm. the business is stabilizing. >> steve, we'll see you tomorrow thanks >> i want my regular spot. >>

. >> intel was kind of shocking and the stock, the data center getting hit again.center i think has not cool i deal with a lot of the companies. the narrative being set by intel. it they will not put it like that how do you kill the stock? i do think they have to spend much worth on what they have adobe. >> jim, leonnice recommendations >> david, go ahead >> google is already spending more on cap ex and virtually any companies out there. were they have the 21 or 22 billion? >> are they not 13%? >> everybody understands the clouds verses what amazon does the one that's most shocking is how they quietly -- that's a cash machine there is not anyone i deal with in silicon valley including people in alphabet, listen, we got to keep up with the joneses. and we should assume that i think it really shocks us. >> why assume? given the spending, that was a big piece of gdp on friday, spending on ip and cap access and people are migrating >> a lot of controversies this weekend. jim, you were so congratutory of larry kudlow >> inventories and exports >> he did 400. he had some

when we say data center chips, these are these gigantic servers that have become a multi-billion dollar business for intel and businesses use these chips. yeah, that business has slowed. intel was banking on it. revenue did slide at the company which cut its financial forecast for the year. demand, though, in chips for personal computers did offset the declines. intel on pace, though, for its worst day in 11 years. >>> from computer tech to ride hailing technology. uber has now set the terms for its ipo and it's aiming for a valuation of up to $91.5 billion. sounds like a lot, and it is, but it is less than the $120 billion it originally thought it might get. uber set a price target range of $44 to $50 per share for the ipo. it will end up selling about 180 million shares and is set to price that ipo on may 9th. one worrying fact in today's filing is that uber lost $1 billion in the first quarter on roughly $3 billion in sales. lot of that is probably because you pay the drivers billions of dollars. but could it be uber's online division, the food delivery service uber eats, that puts pressure on rival gr

intel's numbers have a lot of bearing on that? bearing on that and does it have bellwether status and they're focused on data centers and people lookingand it seems like they're still calling for recovery in general, intel is not the only one plenty of companies are looking for any second half snapback and we've been cautious and i have to explain to people and the semiconduct semiconductor companies are the supply chain and they can be optimistic and they don't know where things will go several quarters out and if you look at the numbers broadly for the space there is a snapback that's embedded for q2, q3 and q4 and the consensus numbers are and if you look at valuations and they'll snap back and the sector in december was a 20% discount to the s&p and it's closer to parity now and i don't know if i'll get a snapback or not, but it seems to be in the numbers and the valuations, so we've been nervous >> one of the other factors that has driven the stock lately is when it pulled out of the 5g modem business or clearing the way for qualcomm to do business potentially with apple and some of the other 5g smartphone makers why did investor

the story would intel, they slashed forecasts amid a decline in data center sales. server chip revenue dropped after years of robust growth, reflected by the chart. they are working through a lot of product stockpiles. ford climbed back above the $10 mark on a number of improvements under its new ceo. strong truck sales bringing a big profit. they cut thousands of jobs, putting billions of dollars into self driving electric cars, all of that beginning to pay off. they blew past all the estimates. mattel, another turnaround story. barbie to the rescue is a we are calling this report. the new ceo focusing on the brands barbie and hot wheels to take them higher. revenue slipped, but analysts have projected the drop to be three times as big. this was a big win. shery: thank you for the latest on the markets. coming up, the nasdaq 100 blue-chip stock index rising to a fresh record. with marvindig in loh. paul: later, we break the latest jobs data with analysis from masayuki kichikawa. this is bloomberg. ♪ sophie: counting down to asia's first major market open. japan's f

intel. yesterday they beat first quarter estimates, but shares are on pace for the worst day since 2008 after they cut the outlook around data centerkness. that is rippling through the chip space. xilinx also had a disappointing quarter. what we are looking at here is a year today chart of the shanghai composite invite, and yellow the s&p 500, and purple the dax, and the emerging-market index. be interesting to see what the next session does bring. we may have a bit of a choppy trading week ahead, or next couple of weeks. something to keep in mind from a global dynamic flow. vonnie: thank you for that. still ahead, u.s. gdp numbers were a blowout. was it really as good as all that? we were looking to the details in the moment. this is bloomberg -- we will look into the details in a moment. this is bloomberg. ♪ ♪ vonnie: live from new york, i'm vonnie quinn. guy: in london, i'm guy johnson. this is "bloomberg markets." vonnie: it's time now for our etf friday moment. hedge fund usage of etf's is on the rise. q2 tell us more is james cyprus -- here to tell us more is james cyprus. what do we mean when we say it is on the rise? james:

intel shares fell for a ninth straight session following last week's weaker than excited earnings. the company cut its full-year outlook predicting the data center would post its first decline in a decade. shares have dropped as much a 13% over the past five sessions, the longest streak of losses since september. in a worrying sign for tesla deliveries, the finished goods inventory including cars ready for sale at top $2 billion for the first time. the count was a rise of 6% for the end of 2018 and up about 90% from a year earlier. tesla attributes the increase the longer time it takes to deliver model 3's outside of north america. spotify has become the first music service to reach 100 million paid customers. the company added 4 million new subscribers in the latest quarter but also losing more money. bloomberg intelligence analyst joins us from new york. what did we learn from this earnings report? >> you learned that customers are pretty loyal to spot a five and they are able to grow internationally as well. getting to 100 million premium subscribers, they have been doing that by first offering promotions and getting subscribers onto their fr

this coming at a time when the industry is grappling with weak data center demand and a downturn in memory chip markets. we saw intel revenue guidance last week we'll see how shares end up right now. right now at the moment down about 5 1/2% back to you guys >> aditi, thank you. turning back toofl bette now, let's figure out what to do with the stock. shares a little bit under pressure here in the aftermarket. victor anthony joins us from aegis capital. ali mogalabi joins us. ali with a hold. victor with a buy. shares down more than 4%, victor are you disappointed in these numbers? >> slightly disappointing numbers. google numbers came in weaker than i was expecting as well as margins came in lighter than i was expecting as well not the most impressive number still solid growth coming out of google properties. still going through the numbers to try to ascertain what within the google sector numbers allowed it to miss have to look for more clarity on the call for that. but so far not the most impressive number but still a great business >> ali, what's your take >> yeah, to a certain extent i agree. first i should say

revenue guidance for the year intel's new ceo, bob swan, partly blaming china for the slowdown >> our conversations with customers and partners across our pc and data-centeredle months have made several trends clear -- the decline in memory pricing has intensified, the data center inventory and capacity digestion that we described in january is more pronounced than we expected, and china headwinds have increased, leading to a more cautious spending i.t. environment. >> swan will join "squawk alley" in a first on cnbc interview today. that's coming at 11:02 eastern adami, did you see xilinx yesterday? >> hammered. it went in a straight line, though valuation was stretched. their quarter was fine, if you look at the quarter. guidance was fine. they made an acquisition, but i think the market said, at 43 times forward earnings, it's too expensive, take some profits, and that's what happened so this is not a xilinx story. >> what's happening here >> intel decided we're getting out of this 5g modem, qualcomm is crushing us, we can't compete. the market liked that. intel traded higher on the back of that, because they're going to focus on higher margin businesses

center. hand sets have been weaker as technology continues to advance and you look for better memory, increased memory, or ics, which is what intel are doing, you know, there's going to be more capital spent in those fabs to make these products we think that we're probably looking at more of the value plays in technology. that's where we are positioning for the second half. >> do you think that in this first quarter that when it's all said and done that earnings drop from the first quarter of the year ago >> here's what's interesting since january 1, earnings expectations have come in about 7% a little bit more than that. they're now examined down year-over-year when the market is expecting lower barriers, lower earnings growth rates or negative growth rates, the expectation is usually met and exceeded, and the market outperforms contrast that with last year when we had 20 plus percent year-over-year growth rates, and the market was flattening down >> in the first quarter. >> yeah. with a lower bar, the expectation of beating it is actually higher. >> do you think we end up with a down quarter or -- >> i think we'll be up >> so i