plus, rbc upgrades duncan brand. the stock is making a nice move. talk about whether there's any upside left. any upsi left. unlimited data on t-mobile, now that's a treat. why did verizon take so long to offer it? is it because their lte network was built six years ago? six years ago? that's like a hundred in phone years. t-mobile built newer, faster, more advanced lte to handle unlimited data. switch to t-mobile, now covering 314 million americans and growing. and right now, get 2 lines of unlimited data for a hundred bucks, all in! taxes and fees included. >>> sell in may go away won't work at yun sector. jonathan, welcome back. why is this not going work? >> thanks, scott, well, i think we know about the sell may go away for the market, but within that, there's a mix of sectors. if you look at health care, it performs well in may. been up eight of the last ten year, averaging about a 1.4% gain and relative to the market: it tepids to outperform. so you have that as the backdrop, then take a step back and look at the bigger picture and health car

rbc says it sees upside from the iphone 8, services business, buy backs.all adds up to $1 trillion. >> this is where you get the consumer products angle. this is a consumer products company with a great revenue stream. this is warren buffett framing the story as more of a gillette razor blade story than it is a story about cloud and social and mobile. and as soon as you take it away from the cloud social mobile you have a cheaper stock than colgate or a proctor. that's kind of the narrative that's driving this stock. i do think that next cycle is going to be a big one. because the surveys continue to indicate there's a lot of move from the five and the six to the 8. i know that the 8 has features that people are guessing on. kind of an interesting, better feel. a lot of people feel by the way you'll need it in order to be able to fly if they take you laptop away. you want to watch things, you're going to need your 8 plus. >> right. i mean, over 18 months we're not talking about that crazy assumption here in terms of how much the stock will go up. it's 20 s

rbc came out this week and said if you get to 240, you fade reflation and if you get to 220, you buyeflation. you'd jump up and down. is that what you expect? bonnie: we would expect volatility to remain low. havee one hand, you geopolitical risk and that will keep ceilings on yields as well as low global interest rates. we still have negative yielding debt. it is way down from the high, but you still have $9 trillion in debt. that is going to be a factor to prevent yields from rising materially. on the other hand, growth has not been great but it is ok. the idea that we should be a lot lower in treasury yields, it is a challenging one to put forth. jonathan: at the start of the year, we had an aggressive short in treasuries and i want to pick out the speculative positioning on the 10 years because it has -- 10 year futures because it has changed. we came in with a big record short. we snapped back aggressively. jeff gundlach asking the you this question, when this chart zigs, should you zag? because when this was aggressively short, the positioning has changed. do you have to go the

alldo you reframe the rbc on euro?ectional call or is there ambivalence about where we will be on euro-dollar a year out? adam: i think it is as much dollar as it is euro. our view is the uncertainty of u.s. policy probably dominates going forward. the uncertainty is much more a dollar versus europe story than a dollar versus yen story, which is what the postelection moves have been dominated by so far. we have a view that the euro goes lower but it is as much dollar strength as euro weakness. guy: we need to think about what's happening with the fed, crucial to all of this, what they do with that balance sheet and the story on the hikes. thank you for joining the debate. adam cole joining us from rbc. let's bring in bruno cautres. good morning. thank you for coming in joining us. it is warming up here on the platform. your timing is impeccable. last night, clearly a big step forward for mr. macron. many steps need to follow, particularly the step towards the national assembly. what is your sense of what the next step

acquisition the second straight quarter, rbc analyst saying the advertiser and salesforce do not have a quick fix and fossil in the watch business, that company coming out with first-quarter results that ms. across the missed acrossmid the board. getting away from small cap to large caps, we have stocks -- [no audio] point 5%, 47 449 a barrel.e that decline in inventory was also the biggest drop we have seen yet this year and that is helping energy stocks and limit some other the kleins today. vonnie: julie, thank you. the big political story, former fireirector james comey's rigged by the president and the fallout and may, next per and interim director could be named today. -- and the fallout that may come and the next it will director -- interim director could be named today. they seem to be career at ei officials. --an: career after the kevin: career as the -- career fbi officials. the reaction from republicans has been mixed at best. people like lindsey graham defending the administration and senator graham, the republican, who last had it tends words against president trump and h

can't -- can top $1 trillion according to rbc.mpiled by bloomberg has with as and no sells price target of $163. artificial intelligence is back as thespotlight today world's top rank ago player and google start a match in china. he is the founder and ceo of horizon robotics joining us from the tech conference in hong kong. there has been a lot of headlines and speculation come and clearly a lot of interest in is the what you think single most useful and profitable aspect of how this technology can be applied? i think artificial intelligence is certainly the next huge wave of revolution in terms of technology to transform the industry. i think we are talking about applying artificial intelligence to the internet, finance, smart homes, smart city, autonomous driving, factories making machines that are more productive, and i think a lot of things can be achieved by applying artificial intelligence, so that is why people are very, very excited by the recent breakthrough of ai, especially the technology of deep learning. i find it int

we do have a call from rbc saying it should be easy to get but japanese markets are off until monday,e not getting a chance to get the boost from a weaker yen. we are 30 minutes away from the open. singapore, taiwan, and malaysia rey.ing the trading fo sophie: not much in the way of direction to guide the fomc, singapore coming online come up .4 percent, taiwan in focus given their reaction from apples results, and all see shares sliding for a second day, down .2%. in the currency space, the its 200looking to test day moving average for the first time since october, the kiwi dollar climbing after first-quarter jobs data out this morning, and the taiwanese dollar back below that 30 mark. taiwan after on apples results, extending gains for an eighth day on the taiex, the longest since 2016. i.t. and telco leading gains. let's check in on shares of ande suppliers hon hai .5%. up they have been the champions for year, bringing in foreign funds. this year, tie when he stocks have edged closer to 10,000 points. the last time we saw these levels was 2000. , they havese dollar helped to boost

president to change tactics, change strategy, maybe kurds some of what the are doing, given that he rbc doesn't support what the kurds -- what the kurds are doing in his own country. ambassador djerejian: i think the compromise can be that the united states puts its position forward and saying we are doing this tactically because this is the most effective way to get rid of isis, but it is a tactical move, but in no way does the united states support kurdishk. or aspirations for independent or autonomy in syria or certainly in turkey. think, diplomatically, there is a way of coming to some compromise on this. it will take artful diplomacy -- vonnie: we are going now to the president of the united states. president trump: it is a great pleasure to welcome president erdogan for his first visit to the white house in years. the american and turkish peoples have been friends and allies for many, many decades. turkey was a pillar in the cold war against communism, it was a bastion against soviet expansion, and turkish kurdish -- courage in war is legendary. that is so true. fought bravely alo

us,ks much for joining analyst at rbc.isa are facing by boston company that their mobile payment partnership infringes on patents. it says it sent apple a series of letters in 2010 describing its patented technology and seeking a partnership long before apple pay debuted. the company also considered a partnership with visa. both apple and visa declined the offers of a partnership. coming up, it inside facebook's strategy for moderating offensive and violent posts. we will take you into how the company seeks to remove certain content from the platform. this is bloomberg. ♪ emily: a stock we are watching, shares of go-pro almost 8% rise in the session. double the amount of usual volume. that is the biggest move since march. investors will hear from the global conference on tuesday. take a look at the bloomberg. take two interactive is down over 9% since the start of trading. it says it is delaying the spring oftil the 2018. rulebookhas created a for its moderators to use when censoring possibly offensive posts from its nearl

. ♪ angie: apple's remarkable success story is seen passing a major milestone with rbc saying it could market cap of $1 trillion over the next 12-18 months. the potentialhas to generate eps of $12. that would take it past the magic $1 trillion mark. data compiled by bloomberg has sells. and no sophie: daivd: teach aviation to become the first carrier to accept bitcoin for tickets. imagine that? the crypto currency will be in place by the end of the year. the airline aims to link government in its uses. the ceo wants to encourage tourists to visit less well-known parts of japan. is no closer to expanding in china despite the injury agreement announced earlier this month by washington. it's all china promising full access to payment processors. chinas struggling in while local competitors expand abroad. right, it is all about entertainment. it always is anyway. phones, wees, smart are talking iflix, a video streaming service with its eyes set on emerging markets. thank you for coming on the program. the first thing that comes to mind is obviously netflix. much has been said about potenti

with standard light may -- standard life may result in savings of up to 3 million pounds, according to rbcdata point with u.k. manufacturing rising at the fastest pace in three years. the domestic market strengthening. sterling's decline boosting exports. the estimate was 54%. the report reinforces the view that exporters are watching boe -- what the boe governor calls a sweet spot. look at what is happening to the great bond market. droppingbond yields below 10 year bond yields for the first time since january, a sign of investor confidence in the nation's ability to repay its debt yield. greece resolving that last minute in pass over the terms of its bailout program with creditors of this morning, unlocking the way for debt relief talks and the disbursement of this next charge of emergency loans. the white line, the two year yield, the blue line, the 10 year yield. 90 minutes into the trading day -- how does a look over there? abigail: not a lot happening in the major averages in the u.s. be on hold, perhaps before the french presidential elections sunday. and the fed to starting its mee

post 9, joining us, rbc capital markets. wish it were under slightly different circumstances.iven everything jcp has been through to say it's the worst price since the ipo in '78 says a lot, brian. >> it does. what the market is saying, these business models are broken. the question is, what will be the order of chapter 11 and chapter 7 filings for a lot of these department stores and so i think looking at enterprise values right now, trading at three, four times and free cash flow yields at 15 to 20% tells you the market don't believe a lot of these companies will be around five to ten years from now. >> and guys like lambert will speak out, rightfully so, saying talk like that isn't helpful. >> i actually agree with brian. i do think when looking at our store models, jcp and sears are the two most likely to have a high default -- high probability of defaulting. and what's interesting is that macy's, believe it or not, their score is becoming significantly down from last year, increasing their probability of default, too. the biggest problem is that they're not resonating to

it ofn average price tag -- price target of $21 a share, and rbc analyst says that snap is already largerhan twitter in terms of daily users and is more innovative. coming up, we will go under the hood of a startup, and how it is beating heavyweights like lyft.nd if you like bloomberg news, check us out on the radio. in the u.s. come on sirius xm. this is bloomberg. ♪ caroline: welcome back to this special edition of "bloomberg technology," live from ge interim headquarters in boston. this area was designated as the city's innovation district back in 2010, part of an initiative to develop 1000 acres of land to luring companies and creating new jobs. the seaport is home to a number of tech startups, including nutonomy. the company has launched a fleet of autonomous time -- taxis in singapore and have started on the mean streets of boston. we checked out what they are cooking up. take a look. self driving technology is taking automakers and tech giants by storm globally. and boston isn't sitting this one out. nutonomy, a self driving car start up, began testing here in january. vp a partner

rbc capital is making that prediction. credit the company's service business and the upcoming iphone 8 for the increase. earlier this month they surpassed the $800 billion mark for the first time ever. a couple of tech heavy weights are settling a dispute and some big changes may be on the way for twitter. >> let's go to jason. good morning. >> good morning. we'll go right back to apple in a surprise move, apple and nokia have settle their court case over property. it's a big deal. as a result apple will make one big cash payment up front to nokia and also pay over multi- years in licensing nokia's technology. apple puts this case to bed and it can focus its lawyers on the growing case with another one other licensing fees. shares of both cos are heading higher on the nones. there's rumor about twitter starting a subscription service for some time and there may be more meat to that. they report that the ceo told the company at the shareholder's meeting they've been kicking around that idea. while it's important to them tha

with us now to get you set up for the week ahead, jonathan golub from rbc capital markets.. >> hi, sara. >> it feels like with the lack of news on earnings and specifics on economic data the path of least resistance is higher for this market. why are the bulls in charge? >> the underlying data is good. like you say, it's been a quiet period but we will start to see another jobs report, which is likely to be good. the manufacturing data, the ism which comes out at the beginning of the month will be things that the market focuses on. you've had solid earnings, recessionary risks are super low. the fed is moving forward, but it's not going to shock the market with whatever they do. june is a done deal. i think grinding higher on low volatility. >> why then is the bond market have a yield curve that's low and flat given the rising rate environment and suggesting bearish outlook on the economy? >> you know, that's a question that we're debating with all of our clients. if you look at the move since last june, we were at about 1.35 on the ten-year, now close to 2.25. but i would

for more on the april report, we're joined by rbc capital marks chief economist jim porcelli and david. welcome to you both. strong january. strong february. weak march. and now strong april. can president trump claim credit? >> no, i don't think that we're quite there. a lot of what you're seeing today has been put in place sort of months previous. but, look, i think at the end of the day, we like this report. and i think one of the things that most folks have to come to grips with is if you're trying to build a case for sort of, you know, resource outilization, ths report checks off all the right boxes. the u 6, now 8.6%. >> decade low. >> yeah. i mean you're within an arms length the previous cycle low. the fed will like this report in terms of us moving in the right direction, but i would hasten to add i heard this from a number of people already today. not consistent with an economy that is accelerating. from our perspective, you know, we're not calling for an acceleration, we're looking for more of the same, pretty nice backdrop, 2.5% backdrop and this report is consistent with t

he rbc means business when it comes to terrorist attacks and innocent children, beautiful children as he puts it that become victims of this. we will have to wait to see what his next move will be. we appreciate you coming on, thank you very much. >> leland: "happening now"'s jenna lee is in our nation's capital today, julie sitting in, she is moderating a conference on terrorism hosted by the foundation for defense of democracy. appropriate right now, janet spoke with former defense secretary and cia director robert gates who weighed in on the attacks in manchester. >> just as we have seen al qaeda metastasize subsequent to the killing of usama bin laden back in 2011 to africa, north africa and elsewhere in the middle east, i think you will see isis become more active and more aggressive in a variety of places in the west, having lost the caliphate in these cities like raqqa. i think, sadly, manchester may be a harbinger of more such activities in the west as it basically -- as people leave, scurry away from those sites, and that doesn't mean they are defeated individually or that th

rbc upping the price target. detailing the path to a $1 trillion market cap. meta appetite control... it's your glass of willpower that helps keep cravings... ...far, far away. feel less hungry with the natural fiber in clinically... ...proven meta appetite control. from metamucil. >>> welcome back. netflix priced itsz ipo 15 year ago today. it's been 20 years since the company launched. how much has it changed and what's ahead? we have a look. >> well, since its ipo, netflix transformed into a global entertainment power house with original content. it's not the only thing that's changed. take a look at how far the ceo has come from the days of red envelope. at its ipo netflix had 600,000 subscribers. only in the u.s., paying $20 a month for jorma durdvds by mail 11,000 titles. now it has 100 million subscribers in over 190 countries who pay about $10 a month for streaming. the number of titles vary from country to country. netflix says it streams more than 125 million hours daily. the next leg of netflix growth will come from continued global expansion and mo

more than five other firms in the last six months have made similar calls for a super cycle including rbccould you juwan. will apple be able to deliver an iphone super cycle or is this peak super cycle, b.k.? >> listen, there is going to be a super cycle, right? everybody that i know and everybody i talk about, they're going to by the iphone 8. that being said, let's take a look at what happened with the apple stock. these aren't the first people to discover that the iphone 8 has been coming out in the fall. we've been talking about it since the beginning of the year. apple was a $90 stock. something drove it up. this is not new news. i would not be buying apple just because all of a sudden analysts have woken up this day saying -- >> it sounds like you think that everything is priced into the stock. >> i think an awful lot is priced into it. i'd still be a buyer on dips in apple until the fall. let's say it comes august, september, trading at new highs, then i would not be so excited about buying on a dip. >> credit suisse raises for 2017, 2018, 2019. talk about a super cycle. >> they're

rbc, that will be worked out. this battle for rocca has something to go and in parallel were working on a civilian and diplomatic aspects. >> you mentioned annihilation with isis. what would that look like in isis iraq in syria there will always be a residual threat from this group in both countries and given the fact that these follow-on's, threats from isis in syria like other areas does that mean the american public should expect a long-term presence of american troops in syria? >> this threat is a long-term bet that's why so many nations have signed up. you don't see a close and decide if it some short-term threat or a small regional threat. this is a transnational long-term threat. i visit, will move against their other concentrations and forces and you say what does it look like #what will it look like we say we have success what we will see is the local security forces , please, that sort of organization can handle it. in other words we drive them down to a point where the locals can handle that and it's no

according to rbc capital, it could hit the trillion dollar milestone in the next 12-18 months. the analysts cited interest in the higher prized iphone 8 expected to be released in september. tech stocks and defense companies helped bring wall street into positive territory today. they were given a boost after the united states and saudi arabia signed a multibillion dollar arms deal. nasdaq and s&p gained ground. >>> the 49ers rebuild gains now, that's what the owners are hoping happens after they brought in a new g.m. and a new head coach after the last season. the 49ers hired john lynch to run their front office. kyle shanahan to coach the team. not going to be easy though. they finished one of their worst seasons in franchise history last year. >> the record of 2-14. we got a chance to sit down with the new g.m. and they join us with that conversation. >> pretty impressive gentleman. even though he has no prior experience as a general manager, the thing that struck me if you look at his life and experience overall, he's never failed truly at anything he's ever done. he was a

our global macro strategist from rbc europe joins us in the studio -- great to have you.covering the latest twists and turns on capitol hill, the late in the afternoon goings-on keeping us busy in the european trading day. to what extent do they stick to your world? >> well, there are probably three routes you can go down to explore this. one is that it will have a direct impact on economic sentiment. it doesn't appear so. it may prevent the administration from setting policy, maybe, that it has problems anyway. third and this is the biggest, point, does it have any legal bearings with political uncertainty? i'm not a legal expert in the u.s., but i reckon european markets will shrug this away and will keep going. manus: the dollar is down for the fifth day. volatility -- we touched on equity market volatility, the let's bring it into your world. what i have got for you here is treasury market volatility hitting the lowest level since 2014. that unnerves me. doesn't unnerve you? -- does it under review? >> it does, but it's not entirely unusual. the economy is chugging al

the last few weeks in the yen, so we could see further weakness up to 113-114 levels according to the rbcnk you so much. what to watch for in the markets as they open. time to head back to the milken institute global conference. we will stay on japan. the progress or lack of progress under prime minister shinzo abe, haslinda amin is standing by with a big gas. what has abenomics done for japan? that's right. it has prompted a new wave of japan.t hedge funds in the problem is it is not happening fast enough. let's give perspective. good to have you with us. what is the difficulty here? shinzo of a wants to happen, but it is not happening fast enough. activelye then investing since 2004 in japan, and it is a different culture. the boards of directors are controlled by insiders, so we have to enhance shareholder value in a different way that we're used to in the u.s. in europe where we can push on management and respectful way to get things done. if it becomes contentious, we can go to the board and push for change their, or they agreed with our proposals and implement them to get a higher s

yvonne: apple's remarkable success story passing a milestone with rbc saying it could surpass the marketover the next 12-18 months. apple has the potential to generate eps of $12 , taking it past the magic $1 trillion. , forberg has 389 buys holds, and no sells. >> peach aviation the first carry to accept bitcoin for tickets. crypto currency will be in place by the end of the year. peach and to link with local governments and companies to spread the usage of that coin. the ceo says he wants to encourage more tourists to revitalize less well-known parts of japan. these are closer to expanding in visa closer to expanding in china. it expanded payment companies. is struggling in china, while union pay, alipay, and tencent financial expand abroad. its is thisenting outlook at its investor relations day, and you are , how he has been able to turn around sony's consumer electronics, and how dominant they have been in the five years since he has taken over. is this restructuring of sony complaint? the senior technology analyst at macquarie capital securities, would you say that he has done his

weighing in on that is gene muenster and rbc's internet analyst mark mahaney. make of these almost daily record highs of almost a select group of names? >> you know, in the 20 years i've covered internet stocks i don't think the sector has ever been less controversial. there's something behind that. they've gone 16 quarters at 50% year over year growth for facebook. we've gone 29 quarters of 20% year over year growth for google and we've gotten 20 years of year-over-year growth. the sentiment has settled in. valuations are reasonable. but i think the fundamental support where the stocks are here today. >> gene, do you agree? >> i do. i just -- quick background. mark and i used to be competitors. i always have a ton of respect for mark. >> i know. >> and i would put him at the top of that list. and we cover a lot of the same names, and i think mark does a great job really looking at what's going on in the past and in the next year plus and what we're focused on is the next kind of one to five years in our new role. i think that one of the pieces that's playing i

. >> joining us now, aforementioned rbc capital markets here at post nine.o we believe they'll keep production cuts going? what do you think of the response? rallying last week on the draw down we saw. >> adds fuel to the rally. i think what's important is i think everyone expected extension, but now they are talking about extending into 20 system. >> right. >> going longer, question is, do we go deeper? is that the surprise in the may meeting. >> i'm honest, i'm not impressed with the 2% rally. it does not feel -- like, we know there's a supply issue out there. we also know opec can't control it at this point, so i understand that if they do -- especially being saudi and russia, they are in some ways geopolitical nemesis. if they come together, i get it, it's a big deal, but why only 2%? >> they were already rallying at this point and the expectation was getting baked in that they were going to extend. so now the question is, will they carry through with march 2018? i think they'll wait to see what happens at the may 25 thth meet because iraq could say, we

here's another mover for you today, perrigo down 3% after rbc capital said it's highly exposed to newls and downward pricing pressures. they are saying it could result from the new fda's commissioner to crackdown on high drug prices. they have a sector perform rating on the stock, down 3%, mike. >> kelly, thank you very much. half hour to go in trading day, steve grasso, and broker, you know, in your notes, steve, you said something about institutional climates all day, nobody can come up with an idea whether markets should be down significantly. that's why we sit here? >> i think it is. you've been in the business as long as i have been in the business, and reporting on it, and it's usually the story that no one can think of that sends the market off the cliff, but we know the last couple weeks when you heard president trump negative headlines, russia, impeachment, that seems to be the only thing that the market didn't shrug off for 24 hours. but then if you think about it, he left the country. >> sure. >> so i think it got off the headlines, off the front page, lets people start to

a timer, michael, as always, welcome to you, and wells fargo asset management, and mark harris from rbc talk to us about this nasdaq, man. >> the nasdaq? it's almost like default mode. not a lot of other drivers in the market. showed a little lack of imaginati imagination. okay, might as well shove more money in the big growth stocks. the nasdaq 100 is about half tech now. tech is the entire story, but a dominant one. i look at the s&p 500 which is just idling like you almost never see. closed at 2400, the ball balances on the seal's nose. it stays there because the seal supports it. >> a great image that i just want to hold there for a second. ann, what about you? you know, earlier, we suggested the s&p was coiled like a spring just waiting to move one way or another, but, again, you know, in the meantime, the nasdaq is happy to move higher. >> you know, i think q4 was a tough quarter for technology, and you certainly saw reversal in q1. it comets to be strong this year. it's a difficult area to find relatively cheap ideas, but there is one name we really like for net. i think the ceo

rbc is talking about how the self-driving cars need graphical processing.s is a company with a vision and the vision is that everybody's going to need artificial intelligence. you can't use regular code writers. that's his theme. regular code writers -- you ask people what they do, and who's good, well, google has great code writers. facebook. he said it's too complicated even for code writers. it as to be done in the artificial intelligence way and nvidia is thinking like this. i think i like -- i think brian krzanich understands the need not to be like this going like with skyworks and broadcom when it came to cell phones. nvidia has a lead and it's just a tight, tight -- >> softbank's vision fund which by the way just last week had the first close. $93 billion. you're going to be hearing about this so often in the tmt space -- technology, media, tell come. because they're moving at a rapid pace there. not just nvidia but the other things that they're considering of course. remember they moved 25% of their equity holdings in arm holdings which into the fu

mkm partners and rbc lowered ratings on the stock, but goldman sachs raised yelp from a buy to neutral growth potential. that stock down about 19% right now. >> which is better than the 27% initial drop it had yesterday. >> meantime, shares of disney falling today after the company reported that decline in espn subscribership and higher programming costs. that was in the earnings report that you covered last night. ceo bob igor addressed the concerns over at espn during the interview on "closing bell." >> we will eventually be in a direct-to-consumer business for espn product. we hope to launch one on our platform before the end of this year. we are increasing engagement with our app significantly. with that comes not only more brand affinity but more advertising, and we're running the business more efficiently. so we actually are confident in espn's future. >> let's bring in ben swinbern from morgan stanley who has a rating on disney and $130 price target. thank you, ben, for joining us. the interesting thing about your these ills is the extent to which you think espn is at a positive

with rbc capital, david kelly is chief global strategist with jpmorgan funds. i think i know what you're going to say, this is today's story, it's very important in the white house press room but not very important to investors, what matters to them is the underlying strength of the u.s. and global economy. >> yeah, and that's been the case for the last five months. the first three weeks after the election the trump darling stocks, companies that would n benefit the most from tax changes and regulatory changes, you know, torpedoed ahead or jumped ahead. but since that time they've given back all of those gains. and since election day there is no trump trade in the market. the market is higher because the underlying economics are stronger. the earnings are great. this earnings season was fantastic. right after the election it was all donald trump. >> david, your thoughts here, my hypothesis has been that the main change that donald trump has brought is in the climate, the sort of emotions of the market rather than any particular legislative accomplishment and th

david: we have a friend from rbc ask youwho asked me to a question, which is given where we are withd time to have substantial tax stimulus? could we overheat the economy? peter: we are at a once in a generation inflection point as it relates to tax policy. we have a serious problem in that if we don't move, we will see companies in the base erosion become more and more significant. area, anom the chicago iconic chicago company leave -- leaves and headquarters in london has a huge impact. when burger king left to the u.k., these are companies that are not going to tax havens. they are going to our best friends and closest allies because they have a more competitive tax environment. i would look at 2017 as the year that this either comes together or it doesn't end there is an urgency to this. i would describe this as an inflection. nobody is defending the status quo, take it manage of that and move forward for a tax plan that is sustainable and permanent. ways the househe hopes to pay for this is the border adjustment tax. the senate has made it clear that it will be very clear -- ver

jon: rbc, credit suisse, jeffries from outperform.mered after that earnings report earnings . steve, let's begin with snap. that dreadful result from the other day -- analysts out there buy on a stock we know so little about. steve: we are not in snap. userevens a big instagram and realizes they are biting into -- >> not here. er: is there anything on a macro level we can draw from snap? there are more alternatives out there to u.s. equities. you have higher rates around the world, you now have a little bit of strength in emerging markets where a lot of people are turning. will there be less leeway for novice companies to ms. numbers like this? -- miss numbers like this? jon: they got their faces ripped off -- snap --t is hard to use why not use amazon or apple? these are probably some of the class u.s. tech names you want to talk about. the consensus is to move international. if you look at valuations, there's a big gap on the averages. if you look at its stock buy stock, a lot of that valuation gap has to do with our tech sector bei

joe spak, the analyst from rbc capital out with a note this morning talking about the fact that thisny that has really struggled to articulate its vision when it comes to how it is going to profit in the future from these future mobility systems, autonomous drive vehicles. he writes ford's reputation with the investor community, with respect to the secular pressures, is that they are throwing a lot of things at the wall. that's summing it up mildly. many people believe that this is a company that frankly has not clearly side how much money it's going to make, and when it's going to make that money when it comes to things like autonomous drive vehicles. finally, guys, want to show you a chart of ford versus fiat chrysler over the last two years. while ford has been investing heavily in autonomous drive vehicles and mobility systems, sergio marchionne has taken a different approach. the approach is, hey i'm ready to make a deal with somebody, whether that's with waymo, developing autonomous drive vehicles, whether that's spinning off ferrari or other parts of fiat chrysler. the bottom