stacy smith joins us. chip maker's bottom line.ow the first major retailer is walking away from amazon for a surge in goods. will more retailers follow their lead? that's later. at the "closing bell." yeehaw! sfrs of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. >>> intel just reporting second quarter earnings. stock is trading lower after hours. with us for more on the company results is company cfo, stacy smith. good to see you again. there are a couple different things on people's mind after better than expected tech earnings so far. how is the cycle for personal commuting and demand for data center? >> yeah. so actually just we came in slightly better than we had guided and i think we are set up with growing momentum in the back half. specific to the pc market came in a little better tan expectations that we had. data center was kind of right in line. hair better than we thought. but pretty much right in line with expectations we had when we started the quarter. >> stac

my conversation with stacy smith. pandora is out with earnings after the internet radio company rejected a buyout offer from liberty media. we will catch up with the pandora ceo. after a year at the helm of cisco, chuck robbins speak to us about brexit and whether he is backing donald trump area first to our lead -- the parade of earnings we saw this week, first up intel facing fresh headwinds in servers. executives are facing multiple questions about how the company will get background course on a conference call with analysts. we caught up with the intel ceo stacy smith after the earnings report. just relative to the second quarter, we came in right in line on revenue and we did better in terms of profit from our expectations. revenue,dissect that the pc market was a little bit stronger and data center was in line and maybe a hair better and that was offset a little bite weakness in memory and the internet of things. category, wehe pc think there was a little less seven inventory vernon the second quarter but we con

we will be breaking down all the numbers, but first i want to hear from stacy smith, the intel cfo. stacy: relative to the second quarter, we came in right online. we did little better in terms of profit for our expectations. when you dissect the revenue, , data market was stronger center was in line and it was offset by memory and other things. wecific to the pc category, think there was less of an inventory burn, but we continue to be cautious as we go into the back half of the year. emily: where do you see the bright spot? do you see improvement in the u.s. or does it spread abroad? stacy: the driver right now is what is going on in the cloud and the data center and we are poised for a strong second half. we have insight into what cloud customers are looking to purchase and we have new customers coming in and technology that would allow them to buy a richer mix of products. what we have seen is the same as we have seen in the last six months -- mature markets are doing relatively better than emerging markets. there are some pockets of strength. we are continuing to watch it. there

>> well, simon, intel's stacy smith was actually just on cnbc where he sounded a bullish tone for the rest of the year. take a listen. >> we have insight into what we think some of the big cloud customers are going to buy. we have new products coming into the data center that we think will give them some capabilities that they'll buy a richer mix of products for us. so that momentum in the data center and particularly in the cloud as we go into the back half of the year we think give us more than seasonal growth in q3 and q4. >> investors, though, at least here in the after hours not as excited. that stock had enjoyed a nice, recent pop so maybe some disappointment in the results. revenue from that kline computing group coming in at 7.3 billion, better than expected. but the data center group, so chips for servers coming in at $4 billion. the street wanted to see $4.2. on the other hand gross margins at 62%, that did beat and that revenue guide is higher than analysts had forecast. so on this conference call, which is kicking off here in just a few minutes, analysts will have some que

about in line with estimates and up more than 2% from a year ago and the chief financial officer stacy smith says the second half of the year looks strong. >> we have insight into what we think some of the big cloud customers are going to buy. we have new products coming in to the data center that we think will give them some capabilities that they will buy a richer group of products for us. particularly in the cloud, as we go into the back half of the year, we can give us more than seas growth in q3 and q4. >>> underpinning the recent rally in stocks is a series of upside surprises ranging from the economy to earnings. so what was wall street expecting would happen this summer? and what is actually happening? steve liesman takes a look. >> reporter: on wall street, the old adage sell in may has given way to buy, buy, buy in july. many on the street or many at the beach are caught by surprise. there may be something real here. that is summer time surprises from the economy to earnings to the federal reserve. exhibit one, the u.s. economic index, swung from around minus 24 to the end of june

i talk to stacy smith. pandora is out with earnings after report that they rejected a buyout offer from liberty media. we will talk to tim westergren. after a year at the helm of ando, we speak about brexit donald trump. the parade of earnings weeks kicked off. intel faces fresh headwinds and servers. executives are facing multiple questions about how the public built yet back on course. smithght up with stacy right after the earnings report. the secondtive to quarter, we came right in on revenue. revenue,dissect that the pc market was a little bit stronger. data center was right in line. it was offset a little bit tight memory and internet of things. category, wehe pc think there was a little less inventory burn in the second port. we are cautious as we go into the back half of the year. we expect high single-digit decline. emily: where do you see the bright spots? does it spread abroad? driver of the country is the cloud and the data center. strong second half. we have insight from cloud customers. they a

emily: stacy smith there. york, what from new is your biggest take away from the conversation? >> i like the intel story and how it is positioned. they could be improving pc trend or. i like the fact they downplay expectations. the data center, there are concerns. the things they maintained is this is a lumpy business. it is inconsistent, concentrated. are doing a guys publicthe buying for the markets. when you have that level of concentration with respect to the vendors, you will get lumpiness. you are going to get a full year distribution of revenue that is in the double-digit range. maybe it ends up being 12, 13% number. margins are high. let's look for 2016. .he data center is improving one quarter does not a trend make. if the u.s. is improving and you to loady if pcs return , we could or growth see some terrific headway made because it is uniquely situated in the markets. still ahead, pandora. elon musk reveals his plan expanding into ridesharing and buses. the details wall street are waiting on, next. ♪ out with aora earnings, announced last quarter to quadruple sales by

on "bloomberg west" intel cfo stacy smith.ck to wrap up the preview of donald trump's speech tomorrow. we will see you tomorrow night. sayonara. ♪ mark: i'm mark crumpton. let's begin with a check of your first word news. the turkish president composed a three-month state of emergency following last week's failed military coup. after meeting with military advisers, he said the measure was being taken to counter threats to turkish democracy and was not intended to curb basic freedoms. texas senator ted cruz and indiana governor mike pence take the spotlight tonight on day three of the republican national convention in cleveland. senator cruz says he has no plans to endorse donald trump who mocked him and his family. trump and hence are in cleveland that will make their first joint appearance at the convention tonight. cleveland police say two officers suffered minor injuries when they were assaulted during a flag burning protest. several arrests were made. the protest made it difficult for convention delegates and reporters to

i talk to stacy smith.ra is out with earnings after report that they rejected a buyout offer from liberty media. we will talk to tim westergren. after a year at the helm of

you can catch her interview with intel -- with ceo stacy smith.re focusing on valiant. the company has been struggling with a new ceo, but have they turned the corner. we're talking to anthony veritasi, president at research next. this is bloomberg. ♪ david: it is 12:00 p.m. in san francisco, 3:00 p.m. in new york, and 8:00 p.m. in london. i am david gura. vonnie: i am vonnie quinn. welcome to bloomberg markets. we are covering stories out of cleveland, wall street, washington, d.c., and stockholm over the next hour. stocks are steadily climbing things to positive earnings results, but after the brexit market selloff and rapid recovery, our investors jumping into the market for the wrong reasons? david: then a win for valeant, with the drugmaker winning approval for two drugs and bill ackman voicing confidence on a conference call. over the past 10 years, spotify has grown from swedish tech startup to giant, but could a possible ipo cause wall street to turn down the volume? one hour from the close of trading. let's head to the markets desk julie

emily: stacy smith, cfo of end up from headquarters, thinking you so much -- thank you so much for joiningoe: coming up, we will explore the connection between household debt and global economic growth. ♪ joe: "what'd you miss?" a recent research there he that connect the dots between household debt and slower global growth. here to explain the connection is the author of the study and princeton university professor who joined us from new jersey. thank you very much. you have been doing a lot of work since the crisis, exploring the crisis between household debt and poor economic performance afterwards. your research finds a global epoch -- application. to us what you have discovered. we knew going into the 2008 crisis, there had been an increase in household debt, followed by the great recession. what we show in this paper is, this feature we have seen more recently is actually prevalent historically in a large sample of vast economies. if you look at historical data, we uncovered this basic fact that rapid increase in household debt is a factor of the gdp, a harbinger of slower growth in

stacy smith on his company's earnings. little while ago, two people familiar with the matter says a senior manager at hsbc was arrested in new york for his role in a conspiracy to rig currency benchmarks. we are joined by wendy o kelly. this is really breaking in the last 30 minutes or so. what have we learned? >> mark johnson, head of global , was flying into jfk and was apprehended and arrested. we are expecting charges shortly and is expected to be wire fraud and is related to the foreign currency investigations the department of justice has been working on for three years now. has been hard to bring charges against individuals. hsbc was not part of that settlement. at the moment, i do not know. one of my questions was if he had any idea he was being targeted. that is what we are looking to find u out. jonathan: these issues take a long time to play out. we have had a few settlements and now we have one personal one. winnie: how much effort does the department of justice put into this? charges against people who are for

ceo we will have intel stacy smith. that begins at four clock p.m. new york time. --4:00 p.m.1:00 a.m. in san francisco, 2:00 p.m. in new york. i am david gura. quinn. i am vonnie what come to bloomberg markets. david: we are going to los angeles, silicon valley, and , andland in the next hour covering stories in detroit and turkey. results from microsoft and morgan stanley's per optimism that corporate earnings can support further games. then it is day 3 -- day three ofit is the republican national convention at nothing has been by the book. ted cruz speaks tonight. an endorsement, or is is part of a bigger plan? david: the recent market turmoil to caused the price of gold drop to medically. vonnie: the markets close in two hours.

stacy smith on "closing bell" yesterday. >> we have insight into what consumer wills buy. new products coming in we think will give them capabilities that they'll buy a richer mix of products for us. so that momentum in the data center and particularly in the cloud as we go into the back half of the year, we think give us more than seasonal growth in q3 and q4. >> you're looking at that stock down close to 3%. in the meantime, we now have warren buffett with us. a blue ribbon commission from the leaders of business and money management. they've been meeting a little bit secretly to work together to develop what they're calling a road map for fixing what's broken in the bedrooms of corporate america. it's a group of what's being called the common sense principles. it's a full page ad in about every newspaper today. all about it you can read it online. governance principles.org is the website. we're joined now by one of those coes that helped develop. good morning to you, warren buffett. >> hi, andrew. >> great to see you. help us understand how this happened. you know, you