tv Bloomberg Markets Americas Bloomberg April 27, 2018 1:30pm-3:30pm EDT
and some fidelity's have been reported in a violent incident in more than five weeks of protest. the spokesman for the un's human rights office sister in the past four weeks, 42 palestinians have been killed and over 5500 others injured. >> 35 of those killed, taking part in demonstrations, as part "great march of return." most have been unarmed and were not presenting an imminent threat to the iff at the time of their killing or injuries. no israeli casualties have been reported. mark: israelis military are under orders to charge what it calls instigators, but warns anyone approaching or tries to damage a fence risks his life.
mike pompeo has agreed to an existing roadmap for the withdrawal of the kurdish militia in a town in syria. this was part of a deal with the turkey foreign minister to impact what ankara considers a terrorist group. president trump welcomed angela merkel to the white house for a private meeting and working lunch. discussions on trade and security are expected to top the agenda. this comes as the president is considering withdrawing the u.s. from the iran nuclear report. germany believes this agreement should stay in place. foreuropean union exemptions on steel and aluminum tariffs is also set to expire soon. global news 24 hours a day, and at tic toc on twitter, powered by more than 2,700 journalists
and analysts in over 120 countries. i am mark crumpton. this is bloomberg. ♪ is 1:30 p.m. in new york, 6:30 p.m. in london, and 1:30 a.m. in hong kong. >> welcome to bloomberg markets. ♪ >> from bloomberg world headquarters in new york, or are the top stories on the world. for peace.call north and south korea say they are committed to a nuclear free korean peninsula, but gave no details on concrete steps to achieve it. ..s. stocks mixed why the chief investment
strategist has his decision on equities. and the joint conference with president trump and angela merkel. itwill bring it to you as happens. abigail, i am confused with what is happening in the markets. abigail: this is not unusual during earnings season. the swings in individual stocks do not equal much clear direction. we have some other tech movers that are holding them back. breaking news. dow jones is reporting that boeing is said to be near a deal x, and a company called kl aerospace component supplier with a market cap just shy of $4 billion. let's get to technology.
we saw a left out of the open. it faded as the day went on. index now off by 4/10 of 1%. we have western digital. that company forecasted fourth-quarter revenue that fell short of estimates. talkinghave analysts aout problems with prices for certain type of memory. that appears to be weighing on micron as well. you have the outlook for heightened competition in cybersecurity solutions. this did not raise the top end of its revenue forecast. it appears that was responsible for the decline. big week, apple will be the reporter after the close on tuesday. this is the second straight week we have seen apple shares pullback.
lot abouten talking a the analyst commentary and apple suppliers that were reported. you see food the apple suppliers over the past week. -- some of the apple suppliers over the past week. amazon is gaining in market cap. we have seen amazon added the equivalent of exxon costs market cap in the past year -- exxon's market cap in the past year. you have amazon's market cap amazon ist of apple, gaining with $769 billion at this point. we will see what happens with apple earnings and if it is able to hold onto that market cap title. the historic summit
between north and south korean leaders, short on specifics, which could be a good thing for president donald trump as he readies for his own presidential meeting with kim jong-un in the coming weeks. is bloomberg's head of national security reporter. mike pompeo said after the nato sense" kimhas "a jong-un is serious about dealing rising the korean peninsula. how much intelligence does the united states have about the sincerity of kim jong-un? there have been other attempts, not with kim jong-un, but with his father and grandfather. we saw a lot of ceremony yesterday, with the press, very
symbolic, but what does it lead to? was requested by campaigner was asked during his first press conference. the question mike pompeo was asked during his first press conference. president trump echoed those conference -- comments with angela merkel today. we know the two countries agreed to work towards formal peace agreements and denuclearization of the korean peninsula. out, what itarried means, how it is interpreted on , that is hoped will determine whether there is more substance than ceremony in the weeks and months ahead. shery: given what has happened between the koreas and declaration and summit, what
guideline will that provide for the kim-trump meeting? it could, as early as next month, if you believe the white house statements. at some level, it will also be symbolic, a first chance for a sitting american president to meet the ruler of north korea. what comes out of it, if there 12 you willalks have to start talking about verification at some point. how do you objectively determined by a third-party that facilities are being dismantled, that nuclear weapons are being dismantled? that is some -- something that generally requires international oversight. it is hard to imagine north korea going to this area right away.
we might come out of these talks with a timeline on how to get get ad -- go forward, and must -- much better sense of what north koreas demands will be with south korea. they may be tough for the trump administration to accept at this point. the international atomic agency has been radio silent. is the iaa back in the picture? bill: it is probably too soon -- i don't imagine they are staffing up for north korean inspections at this point. that might not happen before the end of the year. it might be something we are talking about 420 19, 2020. 20202.2019,
0. 202 shery: does the iran nuclear deal put more pressure on north korea? pulling out of the nuclear deal undermine president trump with setting up an agreement with north korea, or are they too completely different scenarios? -- two completely different scenarios? think we have any idea how closely kim jong-un might be studying the iran situation. president trump has made no to go of his intention off the script of his predecessors. kim jong-un may take a lesson from what happens with iran and say this is a different universe.
what are the prospects for markets a little further out? mcdonald,uest is jim northern trust bank chief investment strategist. what does it mean, right now, jim? we are not seeing the seller reaction you might have thought we would from these seller earnings. there is more noise in the markets then there is the real economy. aggregrate, revenues are beating expectations by 2%. for is a good backdrop corporate profits, which will drive the markets over the next year. i don't think we will have an inflation problem, which would be the big thing that could upset the apple cart. given the expectation of more volatility, does that give you positive out equities --
does that give you positive about equities? jim: we jumped about 60 basis points in the 10 year yield over the past six months. some pickupably see from the inflation numbers. will begin market some momentum as we get further into the year. nnie: there was a bit of a where shouldew -- we look for leadlershipo -- leadership? our favorite groups are financials and consumer discretionary stocks. consumer stocks are benefiting from better income growth. underweight -- what is
underweight? shery: with the strength of the dollar affect your calls? .im: it has been a short period the dollar is up over the last week. we think the dollar is more likely to be in a multiyear slow decline. we are going to have a new phase of a bull market to the dollar. ie: which of the all in, fully invested -- would you be all in, fully invested? jim: we took a little bit of a risk off the table a month and a half ago. we are close to a fully
investment position in risk assets. favoring equities outside the united states and emerging markets. vonnie: thanks to jim mcdonald for joining us. shery: it is time now for our stock of the hour. shares of mattel are popping higher. more thanhave been up 9% on promising first quarter results. abigail doolittle is here with the details. was a recorde quarter for barbie. because -- quarter ,nd we had a revenue beat of 7% almost a $730 million in revenue. the barbie strength helping the other brands, including hot wheels. toy are in the position
increase production of barbie and hot wheels to meet the increased demand. that is an end field position for a retailer. -- enviable position for a retailer. vonnie: what about investors? this is being blamed on the toys "r" us disruption. bankruptus going created a bit of a hole in terms of demand. this is a near-term phenomenon. they are encouraged around their brands over the long-term. the stock was up 9% earlier. was -- shares were trading lower on some of the barbie weakness up until the last two quarters.
finally, barbie is back. the stock was up 9% this morning. that might have been a short squeeze. they would probably have to put up another quarter or two of strength like this to show what the toys "r" us disruption really was. you are looking at pictures of the east room in the white house. and angelarump merkel will be holding a news conference in minutes. we will bring you that to when it happens. this is bloomberg. ♪
looking at live pictures of the east room, where president trump and angela merkel will hold a news conference in just minutes. schenkerilli and marty are reporting. kevin, let me start with you. big headlines with the iran nuclear deal and aluminum tariffs. what will need to happen for angela's side to call it a win? think thatla will the united states will keep an open mind on the iran deal and the terrorists will not apply to european allies. wille my doubts -- tariffs not apply to european allies. i have my doubts as to whether she will get either one of them. she tried to tamp down expectations going into this meeting.
it was a one-shot, given her tenuous relationship with donald trump. he characterized it as a positive one, but there is not the closest and friendliness there was with president macron. even he could not convince donald trump to stay in the iran deal, though he predicted tariffs would not apply to european allies. that remains to be seen. shery: president trump said he had a greatel relationship from the start. what else did the president say? of -- i think the top topic of conversation at the white house has been dominated with news coming out of the korean peninsula. both north korea and south korea have been making headway with regards to denuclearization talks. that was very much on the mind of president trump.
issues the other main coming from the talks between chancellor merkel, as well as president trump, are going to focus on the economic ties that deal with aluminum tariffs exemptions. that is something that president macron and angela merkel would like to see make permanent. these two countries are working together on the issue of ukraine into the energy sector in that. when you take a look at the numbers, $237 billion in trade deals last year alone between ,he united states and germany 63.5 million in exports from the and a $64rmany, billion trade surplus with germany. that is not the biggest administration likes. -- not something this administration likes. onnie: do you think trade
will be at the top of the agenda, or geopolitical affairs? arty: i think angela merkel and probably feel she can make headway in terms of the can probably feel seh can make headway on the tariffs. -- she can make headway on the tariffs. she can see the writing on the wall of the ivory until, but she will give it her shot -- of the iran deal, but she will give it her shot. companies thatw iran ifbusiness with the u.s. is threatening retaliation for making that kind of arrangement.
shery: the senate has confirmed the next ambassador to germany. what do we know about him and how will that change the relationship between the u.s. and germany? kevin: president trump earlier this week urged democrats to prolong the nomination process. saw that yesterday with the confirmation of secretary of state mike pompeo. i think the signaling coming from this administration has been skeptical, to put it mildly. when you look at the exports coming from tehran to european nations, they dramatically increased by more than 350% in the last few years alone. predicted earlier this week that president trump would get rid of the denuclearization
agreement, despite criticism from folks up on capitol hill. this signals to european union's -- europeans that this is something weighing heavily on president trump. when you talk to folks working on these trade issues, even as steve mnuchin is scheduled to visit china next week, ahead of the geopolitical shifting before the north korea meeting. it is well worth noting this ministration has said they would be interested in doing these type of site deals, whether it pertains to issues of north korea or steel and aluminum tariffs exemptions. vonnie: as it pertains to north and south korea, that is changing our to our. -- hour to hour. president trump can decide to extend the waiver, or not.
angela merkel needs to bring it for her own constituency back in germany. lentn: that is an excelen point. the expectations with these two leaders meeting are so low, given the pomp and circumstance seen earlier with french president emmanuel macron. let's think back to last year when angela merkel first visited the white house under president trump. -- he met with ceos in the business community while she was there. she was praised on germany's vocational training programs. president trump pledged money to boost international commitment worldwide to empowering women. there has been smaller areas of common ground.
particularly on the energy sector in ukraine, as well as the movement of tariff exports, differences of opinion on the iran nuclear disarmament deal. shery: president trump will be visiting the u.k. to meet with prime minister may on july 13. what is the state of the u.s. relationship with its european allies right now? >> it is somewhat tenuous. theresa may has made it clear she has aligned with the united states. partners inr retaliation for chemical warfare attacks in syria. time, the general population of the u.k. is probably more anti-trump that even the u.s. population is. over were many protests
the idea of donald trump visiting the united kingdom. that is going to be a very stark reminder he does not enjoy much popular support among the people of the u.k., especially among the muslim community for his immigration ban and other and of course, we have some supreme court news on the travel ban this week as well, which is fascinating. be anywill there lighthearted moments you are anticipating at this news conference in the next couple of minutes? we are seeing top administration officials just begin to enter in, and are anticipating president trump and chancellor merkel to begin speaking within the hour, obviously, in just a few short minutes. commerce secretary wilbur ross just arrived as well. the bottom line here is that
there are key differences on the issue of economic trade, particularly on the tariff exemptions that the europeans would like to see made permanent, and on the issue of iran. point, how much leverage these european leaders might have with this administration, particularly when you look at the differing ideological backgrounds that someone like the u.k. prime minister theresa may represents versus chancellor merkel, as well as french president emmanuel macron. there is much made of the back-and-forth and personal relationship between president trump and the two world leaders main focusbut the coming out of the administration right now is focusing on the developments out of the korean and is love. -- peninsula. shery: you mentioned wilbur ross sarah in, including sanders and john bolton, waiting for the press conference between president trump and chancellor
angela merkel. kevin, we know that mike pompeo, the new secretary of state, is now in brussels talking to nato foreign ministers. this foreign policy line up right now, that president trump has, how in-line are they to push a coherent foreign-policy strategy towards the world? i think when you look at the maneuvering coming from secretary of state pompeo and immediately after being confirmed, those images of him meeting weeks prior with north korea dictator kim jong-un, as he was literally boarding a plane to head to nato, and then from brussels he will travel to jordan, israel, and saudi arabia. it is really in lockstep with u.n. ambassador nikki haley in regards to where this administration is coming from in terms of foreign policy. and of itselfn would illustrate where the administration is headed, especially when you are several weeks away from the planned meeting with north korea
dictator kim jong-un and president trump. president trump has said as early as this morning, they will limit the location of that meeting between kim jong-un and president trump to three locations, and we are just hearing now that we are about two minutes out from chancellor merkel and president trump giving these joint remarks inside of the east room. getie: we are about to there and just a moment or two. kevin, one last question. you mentioned the location. it is possible it might be europe, at which point the president would need to at least include europe partially in this agreement, right? kevin: administration officials have said any talks with north korea will not only include the europeans, but also china. i think that makes it notable about secretary mnuchin's trip over there. it will be a widespread effort on behalf of multiple counterparts. shery: marty, do we know if
chancellor merkel is on board of iranacron's idea of an nuclear deal -- president trump at angela merkel are approaching the podium. let's listen in. president trump: today, i am honored to welcome chancellor angela merkel back to the white house. over the past year, i have enjoyed getting to know the chancellor very well through many productive calls, discussions, and meetings. we have a great relationship. chancellor, i want to congratulate you once again on your election victory. fourth term in office -- it is really something. congratulations. we are also pleased to have our newly confirmed united states ambassador to germany, richard grinnell, our standing man. he is with us today. richard, congratulations. do a great job.
i know you will. thank you. this confirmation was long overdue. we have been waiting a long time for richard to get his clearance, and he got it. it is going to be special, but we have a lot of people that are waiting approval. been treatinghave us extremely unfairly, and they will have to move it along. for decades, the alliance and friendship between germany and the united states has advanced the cause of peace, prosperity, and freedom. today, our nations face a wide array of shared challenges and opportunities, and i am confident that we will need them together with the same strength and resolve that has always defined the united states- german friendship. i want to congratulate the republic of korea on its historic summit with north korea. we were encouraged by president moon and kim jong-un's goal of
complete denuclearization of the korean peninsula. i will be meeting with kim jong-un in the coming weeks. we look forward to that. hopefully it will be productive. i want to thank chancellor merkel for her leadership in our campaign of maximum pressure on the north korean regime, which has helped us to reach this important step, this moment, where we are right now. it has taken a long time, many, many decades to get here. let's see what happens. we seek a future of peace, prosperity, and harmony for all of the korean peninsula. not only a brighter future for the people of korea, but for the people of the world. we willit of that goal, not repeat the mistake of past administrations -- maximum pressure will continue until denuclearization occurs.
i look forward to our meeting. it should be quite something. in our meetings today, the chancellor and i discussed iran, the iranian regime, fueling violence, bloodshed, and chaos across the middle east. we must ensure that this murderous regime does not even get close to a nuclear weapon, and that iran and its proliferation of dangerous -- itss and it support support for terrorism. no matter where you go in the middle east, wherever there is a problem, iran is right there. littleradicate what remains of isis in syria, we must also ensure that iran does not profit from our success. to prevent this outcome, it is andntial that our coalition regional partners step up their financial and military contributions to the anti-isis efforts. some of these countries are immensely wealthy, and they will
payingaying for it and for the tremendous help that we have given them. the chancellor and i also had a productive discussion about the security of europe and the responsibility of european nations to properly contribute to their own defense. we addressed the need to strengthen nato and the nato alliance by ensuring that all member states honor their commitment to spend 2% and of gdp onmuch more defense. essential that our nato allies increase their financial contributions so that everyone is paying their fair share. we look forward to seeing further progress towards improved burden sharing, and a lot of people have stepped up, a lot of countries have stepped up , and they will have to continue to do so. tremendous amount of additional
has been raised for nato over the past 16 months, and i am proud to have helped, but they have to keep going. in this age of international crime, smuggling, terrorism, and is also essential that we have strong border security and immigration control. this is fundamental to national defense. also vital to our security, and that of our allies is america's ability to maintain a strong and robust manufacturing base, which we really are doing in the united states. we have additional steel plants opening, steel plants are expanding. aluminum is doing great. a lot of things are happening that were never going to happen before. that is why we must have a fair and reciprocal trading relationship with our friends and partners. we have a trade deficit in goods
with the european union of approximately -- hard to believe ,- $151 billion a year including a $50 billion annual trade deficit in autos and auto parts. i'm committed to working with angela merkel -- chancellor merkel to reduce barriers to united states exports and deepen our economic ties. the chancellor's partnership in promoting major reforms to international organizations, like the world trade organization, which has not treated the united states well. to protect sovereignty and ensure fairness. cooperation on multiple fronts -- military, intelligence, economic, academic , is critical to the defense of our civilization as we know it.
and the close friendship that we and the german and american that we have between the german and american people enriches the lives of our citizens. chancellor, thank you again for visiting the white house. it is an honor to have you. andalliance is strong thriving, and together we will overcome shared obstacles, seize upon shared opportunities, and build an incredible future for our country. thank you very much. thank you, chancellor. thank you very much. chancellor merkel: i like to thank you for the very warm reception in the white house and giving us this opportunity to have an exchange of views. this is my first visit after the election to a country outside of europe, and it was very important to underline that for
germany, we are very much aware of the fact that these transatlantic ties are crucial and have a potential importance. these transatlantic ties have given a great contribution to our reunification you. -- reunification. the first part of my life i spent on the other side of the iron curtain, and if it is possible to reunite, that was essentially due to the united states and their solution. this will be most important, also for our user -- future cooperation, which is more urgently needed than ever. germany will continue to be a pliable partner -- reliable pa nato and the european union. terrorism,nst iran, terrorism in afghanistan or in africa, and we depend urgently on each other. today, we meet at a point in
time where it has become very clear that the strength of the american president, where he really saw to it that the sanctions against north korea are abided by, it has opens new possibilities, new ways. this first meeting between kim jong-un and the south korean is a first step on a road that will hopefully lead into a better future. we germans only know too well what it means after the years of separation and division to have these first contacts, but we will continue to be vigilant and see to it that nuclear weapons and north korea are stopped, and this is established on the korean peninsula. we think this is essential. we will also have to see in our fight against the iranian weempt to become nuclear,
are of the opinion that the jcp oa is the first step that contributed to slowing down their activities in that respect, and also to establish a better monitoring process. we also think that this is not sufficient in order to see to it are curved ambitions and can change. it is most important to see that iran, after all, is trying to exert a geopolitical influence in syria and iraq, and we have to see to it that this attempt at influence is curbed and that beyond the jcp oa, drive-by lability -- reliability can be established. the europe pn union and the united states should be in lockstep on this, and to end the terrible bloodshed in syria and
bring about a solution for the region as a whole. beyond that and above that, we also addressed the task that we see ahead on defense, germany in 2019 is going to earmark a share 1.4% of its 4% -- gdp on defense. that is an increase over the past few years. we have not met the target where we should be, but we are getting closer to this target and guideline we set up for ourselves. on trade, it is most important to see that very close relationships on trade exist in the european union and germany on one hand, and the united states on the other. we want fair trade, we want to thee that is in line with multilateral trading system of wto, but we also a knowledge for many, many years, wto has not been able to bring about international agreements. i l agreements may well replace
that, and that is something that we, on behalf of the european union, already have done and negotiated with the past few years. so i can imagine such negotiations with the united states as well, but obviously, .hat has not been reconciled i would also like to point out that germany on the one hand has with you,ly traded not just on the deficit side, but the trade surplus. we have been able to reduce that. , due to taxtates reform, has become a very interesting place to invest for our companies, and we can say with great pride not only hundreds and thousands of cars are exported from germany to the u.s., but from the u.s. to the rest of the world, hundreds of thousands of cars built here are exported to the rest of the world, creating american jobs the workers have good
working conditions. that is another bond that ties our countries together. continue to distrust those trade issues. we will have the nato meeting in the summer, and apart from the political relations that are sometimes wend might look at issues differently, we are generally looking on the basis of friendship and partnership. we are linked in the world of science, in the world of culture. ever since 1945, about 17 million members of the u.s. military were stationed in germany, and a lot of them have established very close ties, very close friendships with germans. i am delighted to see the ambassador can now, very soon, when he is in germany, work on this basis. we are delighted that we finally have an ambassador. thank you.
president trump: we will take some questions. blake? thank you, mr. president, chancellor merkel. can i ask a couple questions of the president first? is crowded over, it in here. i want to ask you a couple of comments that you made in the earlier.ce north korea played the u.s. in the past like a fiddle, but that will not happen to us. hopefully in getting these on the korean peninsula, do you feel as if you need to be the closer in that deal? do you want to be the closer in that deal, or is that something that is shared by all of the major stakeholders, all of the world leaders within that region? indulge us if you might, you said that the relationship with north korea has been strong, one of the word
you used. have you spoken with kim jong-un himself, or do you plan on speaking with him? president trump: i do not plan on commenting on that, but we have a very good working relationship. we are setting up a meeting. things have changed very radically from a few months ago. you know, the name-calling and a lot of other things. we get a kick everyone's in a while out of the fact that i will be watching people that fail so badly over the past 45 years explaining to me how to make a deal with north korea. i get a big kick out of that. we are doing very well. i think something very dramatic could happen. they are treating us with great ispect, and, you know, what going on with south korea. i think president moon of south korea was very generous in saying that we helped make the olympic they great excess, because of the fact that, as you know, there was a tremendous animosity and a tremendous problem going on.
all of a sudden, people started buying tickets because a whole different feeling when the north said we would love to go to the olympics. a lot of good things are happening with respect to north korea. , when it obama told me had a meeting with him, he said that is my biggest problem. that will be the most difficult thing you have. honestly, i wish it was handled earlier. i wish it was handled by another administration years ago. i am not just talking about president obama. you can go back to any administration you want. over the past 35 years -- this should have been handled before, not now. this should not have been left for me to handle. but we will handle it, we are handling it well, and hopefully there will bp for north korea, south korea, germany -- everything is included. japan -- the chancellor has been very helpful in the maximum pressure campaign, as i said. really, very helpful. so have many other nations.
china has been great at the border. howyone is surprised tightly clamped down. everyone said he wouldn't do it, but he did it out of a relationship that we have, and also the fact that we are negotiating trade deals. i think that is very important to him. hopefully we will come up with something that is good for both countries. i think some very good things can happen with respect to north korea. we are setting up meetings now. we are down to two countries as to a site, and will let you know what that site is. do you have a question for the chancellor? >> just a follow up. do you feel like this is your responsibility to get settled between north and south korea? president trump: i think i have a response ability. i think other presidents should have done it. i think the responsibility has fallen on the shoulders of the president of the united states, and i think i have a responsibility to see if i can do it. if i can't do it, it will be a very tough time for a lot of
countries and a lot of people. it is certainly something that i hope i can do for the world. this is beyond the united states. this is a world problem. it is something i hope i am able to do for the world. ok? >> thank you. chancellor? german]g >> thank you very much. i wonder if you have given any us her and says that the european union will be exempt from steel and aluminum tariffs, from the may 1 deadline. did president trump tell you what he may or may not do? thank you. the presidentkel: will decide. that is very clear. we had an exchange of views on the current state of affairs with negotiations and the respective assessments on where we stand on this. the decision lies with the president.
ross? >> chancellor, i would like to start on a question with a run with you and the president. after a long day of talks, president macron went to congress, warned of the new war in the middle east, and asked the world and united states to respect the sovereignty of all countries, including iran. in the absence of a new agreement, are you prepared to use military force to rein in the nuclear program in iran, or do you have another plan b that notot an agreement and military force? president trump: i do not talk about whether i would use military force. it is not appropriate to be talking about, but i can tell you this. they will not be doing nuclear weapons. that i can tell you, ok? they are not going to be doing nuclear weapons. you can bank on it. please. >> meta-chancellor, only a year
ago, people in berlin were very much concerned about president to showt being ready toughness against russia. now you have come to watch them with the concern that a new round of sanctions against the so-called oligarchs may be detrimental to the german economy. have you asked the president to exempt german companies from these sanctions, and are you generally worried about the united states, because the president is trying to be toughest with president putin and might change completely and be treating russia too harshly without court meeting with you? chancellor merkel: we discussed the ukraine and worked together very closely over the illicit actions of russia due to, for example, the annexation of crimea and the situation in the ukraine. i am very pleased to say that we work very closely with the american administration in
complementing them. the sanctions are very much a thing of the congress, and we work together with the representative of the administration. we have also worked very closely with the treasury. exchanged views on what sort of secondary effects that might have, and looking at the conflicts we have with russia, for example, in syria, there is a wide degree of agreement and no one is interested in not having good relations with russia. wherever there are conflicts, wherever there are things happening, like in the ukraine, we have to call a spade a spade and have a principle of integrity in a country, like the ukraine, is one that needs to be upheld and enforced. madame chancellor, was the exchanged satisfactory on these issues between the americas -- between america and europe? is it as closely aligned as we
want? chancellor merkel: i believe that the exchange is there. sanctions have been adopted by congress. we pointed out to what sort of effect it has. i believe that our finance minister and the treasury have talked about this yesterday, when they met with finance financing forhe syria conference yesterday and one of our problems i can talk to you about [inaudible] >> mr. president, two questions. the first is on ronnie jackson. it has been one day since he bowed out. i know it has been less than 24 hours -- do you have a new nominee for the secretary of the department of veterans affairs? my second question is on the u.s. embassy set to open in jerusalem in three weeks. have you decided if you plan to attend, and also can you confirm if treasury secretary steven mnuchin is leading a delegation
that could include your son-in-law, jared kushner, and it ivanka trump? president trump: ronnie jackson, admiral dr., is one of the finest men that i have met over the last long abigail: -- last of time.od high quality. high-quality family. i just met them. i explained what happened. i explained that washington can be a very mean place. you don't know about that, chancellor. a nasty place. the false accusations that were made about him by senator --, from a great state, i don't think that state will put up with it. these were false accusations about a great man, about a man who has a son who is a top student at annapolis. life too has given his this country and the military. a brave man who would have been a great leader. to say the kind of things that he said, you have president
obama giving him an a plus report. president bush, a plus report. report.t trump, a plus to make statements of things that most people said never happened, never even happened, me, ag them names was, to disgrace. an absolute disgrace. i think it is something we learned -- i called him today and said in a certain way, in a very big way you are an american euro, because you have exposed the system to some horrible things. i have had it happen to me with the russian collusion hoax -- it is a hoax. i came into the job understanding that things happen. he didn't. doctor, he is a
great admiral. he did not think a thing like this could happen. i think it is a disgrace. i would like to comment on that. and i'm glad you asked the question. i think this man has been treated -- he is an american hero and i think he has been treated very unfairly. as the nomination, have you put forward a new nomination yet? president trump: i have many people who want this position, if you can believe it. we have some excellent people, very political people, some people that a thing like that would not happen, or if it did happen, i guess they will handle it somewhat differently. have many people that want that job. we are very proud of the job we have done for the veterans. the veterans have been -- we have accountability approved, which is something that for they have beens trying to get, as you know. they could not get it approved. we have accountability. when someone treats our veterans badly, we can fire them so fast,
almost as fast as they fire people in germany. we will get rid of them, and we are getting choice. we are putting choice in very, very strongly. we have tremendous support in the senate for that. but i have a lot of people who want the job we are getting. we are going to do a great job for the vets, and that was one of the things that, to me, was the most important. we had tremendous support from the mets. we are getting great reports. we are getting things such as accountability done, and will soon be getting choice done. meaning if a veteran stands on a line and cannot get to a doctor for various reasons, they go into a private doctor, and this country is going to pay. they will not wait nine weeks to somethingcure that could have been very easy to queue are they end up dying from it. so i am very proud of what we have done, and i will tell you, the v.a. isd of going to be very exceptional.
we have some exceptional people that want to do the job. >> i wanted to backtrack to the u.s. embassy opening in jerusalem. you said in the past you would like to go -- president trump: they came to me, so many said can i tell this story? they came to me with a proposal for a $1 billion embassy. the papers, mike pence can tell you, the papers were put before me to sign an application for more than $1 billion to build an embassy. i said what are you talking about, $1 billion? host embassies are a single story. they said yes or, $1 billion. i had maintained have signed, -- i had my name have signed, and then i saw the figure. i never got to the word trump. i called my ambassador, who is a great lawyer. most business people know david friedman, the ambassador to israel. he loves israel, loves our country, let's is real too. i said what is this $1 billion?
he said i can build it for $150,000. for 150i can build it thousand dollars, the embassy. we have a building, the site, we on the building and the site. i can take a corner of the building and four $150,000, we can fix it up and make it beautiful, open our embassy. instead of 10 years from now, we can open it up in three months. that is what we did. $1s david, let's not go from billion to $150,000. let's go to $300,000 to $400,000. it will be somewhat temporary, but it could be for many years, but they're looking for sites -- we have a site and a great site. the site is better than anything you can imagine. that is the way government works. they were going to spend $1 billion, and we are going to
than half $1ss million. they could have done it for less than that, but i said let's make it really nice. i'm very proud of it. i may go. jerusalem has been a subject that has been promised for many years, as you know. , it hasssy in jerusalem been promised for many, many years by presidents. they never had the courage to carried out -- carry it out. i carried it out. i do want to tell that story, because there are a couple of people that got to see it, including mike, but others, they were literally going to spend $1 billion, they were spending a tiny, tiny fraction of that in the 100s of thousands of dollars instead. maybe it will be nicer than a $1 billion building, ok? for the chancellor? >> gensler, i wanted to ask about the iran nuclear deal. you just heard president trump say the country will not be deal,ng at three nuclear
you can bank on it. if you fear the u.s. backs out, ?hey will start nuclearization your the second european union leader to stop at the white house this week. what improvements did you recommend to the president that need to be changed to keep the u.s. and the deal? -- in the deal. i set up myerkel: position, which is i believe that this agreement is anything but perfect. it will not solve all of the problems with iran. it is one building block that we can build up a structure with. kingdom, france, and germany work together with the american colleagues, this was brought about. we now want to see what decisions are made by americans and their partners. the whole of the region is of prime importance to us, because that is 1000 kilometers away,
and just not the case between u.s. and syria. syria and iran are countries that are right on our doorstep. ,hat is prime importance to us and we will continue to be in close talks on this. >> madame gensler, -- chancellor, you used to describe whatca as a destination of you wanted to be, and now it is said in germany by you that europe actually has to take its destiny in its own hands, and you cannot rely on the united states supporting you all the time. have you talked with the president about this development, this unhappy development that we are drifting apart? alsohould you not
deliver on his promise to increase the defense spending? to you mr. president, a lot of people are your dated by the way you fulfilled this most byortant -- irritated the way you fulfilled is most boring job with such aggressive twitter messages. -- does this you mean in the future there will be less compromised struck by the united states, less re-conciliation? how will you decide on the first a possible extension of the exemption for tariffs. this,s your position on mr. president? will there be a trade war with this big block, europe, or do you see an opportunity of actually not going into a trade war? well, i thinkkel: for a lot of people in germany but also in many other countries, people wish and love to go to the united states. we have said there are more than
40 million people that have their roots in germany, in europe, here in the united states. germany, ande in europe, the united states is a great country. even though we see reciprocity on some issues, we have to talk about this. the land of freedom, this great country, obviously, still remains very attractive. and continue to say that, we have to take our destiny in our own hands because we can no longer, as we used to during the period of the cold war, during the years when germany was divided, rely on america coming and helping us. us, butis still helping step-by-step we will have to too,ase our contribution and america has been very much engaged, broadly engaged in parts of the world that are far away from america.
the people of america have also said well, what is in it for us? the president is saying you ought to have some more burden sharing. in a way, we are maturing and growing out of a role where after the second world war, people were happy for germany not to be coming to engaged, -- engaged, toong too active. but this period is at an end. that was essentially 60 years ago, so we in germany have to learn to assume responsibility. we are proud to be the second largest group in nato. we have done a lot from the president's perspective, not perhaps fast enough, but as german chancellor, i would say we have made important steps in the right direction and will continue to do so. we cannot rely if conflicts on -- are on our doorstop, for
others to step in. we will have to give a contribution, and this will have to increase over the next few years to come. it will have to do with military engagements, defense spending, tracking root causes of flight, but also with a willingness to become more engaged in diplomacy. germany, for the first time, is part of the so-called small group that has had a meeting in. on syria with the u.s., with saudi arabia, and we want to give our contribution to this as well. it is our obligation, our duty. i don't think that we ought to complain about this. we have to learn as a big country, as an economically and we mightuntry, be economically successful but to assume our role. there are differences of opinion. we can discuss that openly. you,dent trump: thank chancellor. we need a reciprocal relationship, which we do not
have. the united states right now has a trade deficit with the european union of $151 billion. chancellor and i have discussed it today at length and are working on it, and we want to make it more fair and the chancellor wants to make it more fair. same thing with nato. we have a far greater burden than we should have. other countries should be paying more. i am not saying germany alone, other countries should be paying more. we are protecting europe, but we pay far more than anybody else. nato is wonderful, but it helps europe more than it helps us. why are we paying the vast majority of the cost? we are working on those things. it has been unfair, and i don't blame the chancellor and i don't blame the european union, i blame the people who preceded me for allowing this to happen. there is no way we should have a trade deficit of $151 million.
we will make it more reciprocal, make it a much more fair at the end,nd everybody will be very happy. i view this as many countries, it as oneg at block will really benefit. there is tremendous, tremendous potential between the european union and the united states. i think that is going to happen. there is also a tremendous benefit to nato when people pay what they have to be paying. some countries pay more than they are supposed to. poland is one, they pay a little bit more than they are supposed to be paying or have to pay because they feel the united states is more than carrying the load. perhaps they feel it is not fair. it is something we very much appreciate. that when i look at the numbers in germany and some other countries, they might not trump, but you have
to understand that means i am doing a good job, because i am representing the united states. on glut is representing germany. she is doing a fantastic job. my predecessors did not do a very good job. but we are going to try and catch you, ok? we will try. we are going to have a reciprocal relationship and it is going to be something that benefits all of us, ok? thank you very much, everybody. thank you, thank you. on the left, thank you very much -- angela, thank you very much. vonnie: that was president trump and angela merkel speaking at the white house. plenty of headlines crossing the bloomberg. they discussed a range of issues , from the u.s. embassy, the new u.s. embassy in jerusalem, specifically the construction of new u.s. embassy in jerusalem, to the u.s. seeking
with a more reciprocal trade balance. no decision made on excepting the eu from steel and aluminum tariffs. that was another point of contention. iran and north korea were brought up as well. >> it is also notable, the contrast of emmanuel macron to the coldness. not a lot of chemistry between angela merkel and president trump. let's give more insights from kevin cirilli, bloomberg's chief washington correspondent. he will be joining us in the east room shortly. let's bring in marty schenker, bloomberg's chief content officer. marty, what was your impression of the meeting? it.y: i think you hit upon the contrast between macron and trump and merkel and trump could not be more stark. clearly, it is what people have described as a bromance between the two. the french leader and the u.s.
president -- that does not exist between angela merkel and donald trump that does not mean it was not a productive relationship, but the two key issues, which were iran and tariffs, were apparently unresolved. i am not quite sure what they think they got out of it. it punted very quickly, in fact. i thought it was interesting, especially with the way the german chancellor answer the question with regard to terrorists, which is the president needs to decide, and it is in his hands. kevin: absolutely. no major development from president trump's remarks about whether or not european nations will be exempted on those fields -- this steel and aluminum trade tariffs. iran with regards to the denuclearization agreement, president trump was quite candid when he said "they are not going to obtain a nuclear weapon, you can bank on it." weighing on his
mind. in regards to north korea, the president also suggesting that someone who isbe ultimately going to still meet with north korean leader kim jong, someone they feel they can have these types of back-and-forth conversations about. he did not answer directly whether he has already spoken with the north korean dictator. and then, of course, you have to speak more broadly here. alone, two european leaders, angela merkel of germany and president macron of france, both making their case in very different ways to it administration that is very much at odds with not just more progressive political ideology in europe, but conservative ideology in europe. two regards to the u.k., on very contentious issues relating to trade and iran. hispresident, while hearing european counterparts, is not
making any concessions. it is going to be interesting to see whether or not, when you take it across the globe to china, with regard to stereotype -- treasury secretary steven of offsethat any kind side bilateral deal will get this president's attention to change his mind. abigail: marty, i want you to weigh in on that point. we have certainly heard from angela merkel, chairman of germany,chancellor of the sense of multilateral trade agreements, talking about the european union, which is a start contrast from french president emmanuel macron, who seems to emphasize the u.s. and france. what did you make of that, and how did that go over in europe? you know, i think one of the things lost in this focus between who has a relationship that is better between macron merkel, we have to remember merkel, we have to remember that the merkel-mccraw and relationship is somewhat fraught. their approach to europe and how
best the european union should work are not the same. that includes trade agreements. we still lose sight of the fact that the eu itself is not politically unified in a way that would allow for a unified position to be advanced to donald trump, by two separate world leaders. you have to keep that in mind. scarlet: our thanks to marty schenker, bloomberg's chief content officer, and kevin cirilli, our chief washington correspondent, following the news conference between chancellor angela merkel and donald trump. in washington, because u.s. gdp came in, beating estimates for the first quarter, despite a slowdown in consumer spending. the white house says all of that is proof that the tax cuts are working. the white house says all of that is proof that the tax cuts are working. >> for me, the headline is the trump tax policies are working exactly as intended. total spending surged in the capitalarter --
spending surged in the fourth quarter, and went up the same amount in the first quarter. are joined by representative cathy mcmorris rodgers, from the house republican conference chair. thank you for taking the time to speak with us. this tax law, of course, while it to ad credit better-than-expected gdp, it did not stop conor lamb, who criticized it as a giveaway to the rich by living a house seat in pennsylvania. it shows it does not have support beyond 50%. whitey you think that is? why is it still such a struggle to convince america that this was a good thing? the mcmorris-rodgers: impact of tax reform and the impact it is having on individual families, small businesses, bringing back jobs from overseas is still being implement it. we have not seen the full impact of the tax reform that was passed in december. i am very encouraged, as you look at some of the results of tax reform that it is having on our economy.
a stagnant economy, stagnant wages, and now we are hearing hundreds of stories from individuals that are seeing more take-home pay, from businesses that are expanding, they are tearing out the walls and hiring employees, investing in their employees, these are all good stories. are going to continue to see that momentum. i am most excited about the optimism that it is bringing. we are seeing consumer confidence up, small business confidence up, investment by families as well as small businesses and corporations is up. that is the right direction that we want to be going. representative, thank you for being with us. we did see a slight decline in consumer confidence in the latest reading, in part because of higher gas prices. the pump is getting more expensive. this particularly eats into the take-home pay of the lowest somers and has eliminated of that tax benefits. how concerned are you about that? nevercmorris-rodgers: you
want to see those tax prep -- those prices go up, but overall, as i listen to people in eastern washington, i feel like their hope has been restored. there is more optimism overall, as we hear the stories of people , businesses that are expanding, people that are getting bonuses. at starbucks who just had a baby, who was so excited, i think that is what we want. we want people to start dreaming again, leaving they can live the american dream, and that momentum continues to build. scarlet: what about the deficit? we have new expectations of the budget in the u.s., it will exceed $1 trillion by 2020 and by some measures, the u.s. is going to be the only developed nation that is increasing its that relative to gdp over the next decade. what do you say to that and how do you plan on reducing the deficit? i am amorris-rodgers: conservative, i am a fiscal hawk. i believe we must address the
deficit and the accumulated debt that we have as a country. several years ago, admiral mullen, when he was chairman of the joint chiefs, said it was the number one threat that faced america. we must take this seriously. the house has led on fiscal reforms. we also lead on the budget, where we pass all 12 of the appropriations bills, which meant that we went agency by agency, line by line, and set the priority within that agency. we did all that work ahead of schedule only to have the senate passes zero of those bills. in order to really address the deficits, the debt, we need to get those bills on the president's desk. that is where the house is leading. we are having conversations right now, possibly around revisions, which i would like to see as i look for those opportunities to cut the spending and really address the debt and the deficit that we have accumulated. the house also voted on a balanced budget amendment, which would be the best thing that we
could do to actually force congress to live within its means and set priorities. mentioned the revision package, and i'm glad you brought it up. certainly, the president has talked about cutting back on the spending that was approved in on bill.his bill -- omnibus but that package will have trouble passing the senate, let alone the house. was forblicans run on i the $1.3 trillion, and now i am against it? will that work in november? it is notris-rodgers: we will be running against it. we had to get a budget in place. what we will be running for our further fiscal restraints. looking at programs, agencies where we could reduce spending and going line item by line item to look at those possibilities. is goinganey at omb through it right now. he is planning on making some recommendations on behalf of the administration. the house and the senate are
also looking at what options we might have to put together a rescissions package. this is something that has not been used recently, but in previous decades this was more common for the house and the to pass a rescissions package. a need of 50 votes in the senate, so there is a likelihood of reducing spending through the senate and getting on the president of the desk. scarlet: the president said he busld never sign another omni bill, but we will have to pass another bill in september to avoid a government shutdown, before the election. what is your view that the congress can pass spending bills in the next five months? rep. mcmorris-rodgers: the house will lead on this effort. the house is committed. the republican majority in the house is committed to doing our job. this is how we exercise the
power of the purse. this is our fundamental responsibility. any of us, including me, in the house would like to see the senate change their rules so it is not a 60 vote threshold, so we do not have to get all the republicans and nine democrats to join us in doing our fundamental jobs. we're going to work on this, and is whenhis -- omnibus we do all of those appropriations bills in one package. we are working to pass each one individually, focus on priorities, and get as many things done as we possibly can. scarlet: congresswoman, you face a tightening battle come fall to keep your seat. the latest poll shows you are neck with-- neck and the democratic candidate, lisa brown. does it help you to align yourself with president trump or distinguished yourself from his policies at this point? rep. mcmorris-rodgers: first of
all, that is a poll that was sod for by the democrats, that is skewed to a certain degree. i am proud of my record of getting results. working with president trump to get results. we have bipartisan bills that have passed the house, 5 that have been signed into law on issues that are important in eastern washington, whether that is supporting timber communities, school rules, legislation to help families with disabilities. i'm just focused on telling my proud to represent eastern washington, and proud of my record of results and working with president trump where i can, but also on issues like trade. i just it was myself. -- i distinguish myself. important to washington state. eastern washington, i represent a lot of farmers. we want to make sure we are doing a targeted approach that will be affected.
hold countries like china accountable for illegal practices, and make sure we are not damaging our own economy. scarlet: our thanks to cathy mcmorris rodgers. as we had to break, let's check on the markets. we are looking at a change for the major indexes. the 10 year yield is creeping down, 2.96%. the dow is unchanged, the s&p .00 up marginally a mixed and to a week where we have gone all over the place. abigail: it has been all over the place. scarlet: from new york, this is bloomberg. ♪
scarlet: live in bloomberg world headquarters over the next hour. here are the top stories we're covering. dispelling doubts. results from tech such as amazon and facebook proving naysayers of wrong. up the pattern? hergermany's leader got turn to sway president trump on the iran nuclear deal. we had lied to the white house for a gauge of whether or not she was successful. we are in search of direction. >> a man during session. meanderingre -- session. you have elements pushing and pulling in either direction.
for the week we came full circle , finishing with little changed over the past five sessions. you can look at the s&p 500 versus the moving averages. we tested yet again and bounced above it. that is the third time we've seen that happen. the balancing act, to take a snapshot, the two big contributors to gains, amazon and microsoft, to dating a record today. there has been talk about how much jeff bezos has added to his net worth. amazon up three and a half percent after the company beat on every metric you can look at. microsoft beating as well with its earnings. revenue coming in ahead of estimates. you have exxon mobil, definitely
a weight on the major averages after the first quarter output was the worst down to 1999 when t-mobile.with -- mobile. elsewhere in terms of earnings we are watching, columbia sportswear and the other athletic apparel companies , earnings thatl beat estimates because of the cold weather. under armour reports next tuesday. jeffries says the business trends are improving. expedia andcheck on booking holdings. adjustedrter revenue ahead of analyst estimates. expectations were fairly low. it was better than feared.
>> thank you. in currencies, we are keeping an eye on the british pound. not feeling so great today if you are long on the pound. a week gdp report. theou blame it on the snow government was downplaying that. >> there was not the slowed to blame but wages the highest since 2008. raising more inflation. word news with mark crumpton. mark: the net a nation secretary-general gutierrez calls the summit between moon jae-in and kim jong-un historic. the spokesman read the remarks to reporters here in new york. >> the general counsel will build and implement all agreed action to further
reconciliation, and progress towards a verifiable denuclearization on the korean peninsula. thehis also applauded important commitments -- commitment from both sides. mike pompeo addressed a meeting in brussels for the first time as america's top diplomat. pompeo was sworn in thursday. he said the u.s. remains committed to the alliance but the collective defense requires greater burden sharing. >> all nato allies agreed to increase defense spending. to fund majorare equipment. it is now up to each ally to make good on that progress. bear thenations must
responsibilities to make the case to their fellow citizens. >> he reminded the alliance russia is running aggressive westerns to undermine democratic institutions. it will not be a nafta deal in place before a u.s. delegation heads to china for trade talks. saysconomic minister despite progress on key issues a push to have an agreement over the coming days came up short. technical discussions between lower-level officials will continue. ministers will meet may 7. paul manafort has lost a civil suit to limit the authority of robert mueller in his criminal case. manafort's attorneys argued the special counsel should be blocked from charging him with role innrelated to his the presidential election. a judge throughout the lawsuit saying the criminal cases are
the proper venue. global news 24 hours a day on-air and on tick-tock on twitter powered by 2700 journalists and analysts in 120 countries. this is bloomberg. thank you. we were talking about the themes of the week. missed, ayou may have surge in jet feel -- jet fuel prices. 45%: jet fuel prices are up from a year ago. delta, torom american. not so long ago, all the airlines used to hedge against any changes.
scarlet: let's move on, shall we? seen as less vulnerable to trade tensions. julie hyman is standing by with more. julie: i'm joined by a before leo miniature of the royce international premiere fund -- which focuses on international small caps. we have a chart on the bloomberg looking at international internationalus large-cap. small-cap index versus the ratio. been gainingve steam this year over the past five couple of months. what do you think has been driving the trends? in the u.s. we have talked about trade. what has been driving internationally? >> we have found, we have a white people are on it, small
caps respond well to rising interest rate environments. they beat international large caps in the interactional space. i think in part because there is a perceived higher level of cyclical exposure. , in terms of performance. they did with them in declining rate environments. little bit in raising rates the output is the large cap. that i think is one of the driving factors. of one international, when equities are beating u.s. equities, there is an expectation about that in current markets because they have underperformed for so long. ,uring those environments between rising rates and international equities being
expected to do better than u.s. equities, it has a tail wind. i am curious generally. we talk more about large-cap stocks. they are more visible. as you have been doing this have you seen client awareness of small-cap investing rise? and improve? >> we certainly have. international small caps is an area the equity markets are growing at 7% a year. the actively managed portion of it. growing at all. 7% growth is remarkable. people are looking at international small-cap as an asset class with better risk-adjusted returns. some are adding emerging markets for tactical exposure. international small-cap has the same exposure.
julie: you just got back from japan for uber talking to companies they are. where it you were talking to companies there. david: the small-cap help is good. global thesed on businesses. we like the environment in japan. it is fashionable to dismiss japan with a soundbite as a basket case, or they don't have the demographics, or whatever. we see improving corporate governance, tax rates being the lasty 25% over seven years, the sovereign debt picture everyone focuses on is overstated, they have huge foreign currency reserves. with a dynamic society
much better returns on invested capital being produced by businesses. julie: i want to mention my tech, a provider of outsourced r&d. we have a look at japanese unemployment. .his would be good for my tech i am curious what it does to margins. what effect is that going to have? upward wage is pressure. does is they do a long-term employee leasing of highly qualified engineers this works well in the market that has a tight labor market, and in flexible labor market. which japan does. you cannot fire people. lease of those
employees for nine months to a year. it is a good environment for them to have a tight labor market. for theires demand offering. margins are helped by scale. benefits ofg the scale with a slow margin improvement. a 3% dividend yield, pretty good growth. returns are invested. long-termttractive investment. julie: we have to leave it there. thank you. nadel, thank you. scarlett? scarlet: thank you. coming up, show me the money. amazon shares rising thanks to blowout earnings.
scarlet: this is bloomberg markets. i'm scarlet fu. lisa: i'm lisa abramowicz. shares of amazon jumping the results of one of the highlights in an exciting earnings season so far with tech firms. let's go to emily chang in san francisco. emily: i'm here with tom giles, our executive editor of bloomberg tech, who covers facebook. we have to start with amazon. shares are still up. jeff bezos made a lot of money. what are the highlights now that we have had a little distance? the by market cap. thatis is a company
believes in itself enough to spend heavily on the future. more money on data centers. more on building things out. feature.s a big we have been writing about that. out,er thing that stands the increase in the cost of amazon prime. this enables us to get free shipping and access to other premium online content. $20.raised the price by they have 100 million users around the world. amazon just discloses that. then recognizing you need this and you are going to pay for it. we are going to make a couple billion dollars. >> talking about how much not just amazon, but out of that spent.
$16.2 billion on capital projects. they are continuing to invest heavily. >> not this quarter. >> it is not just amazon. these companies are so big to havegrowing, they need to exponentially more infrastructure. it is look at the charts, exponential. >> with facebook they are spending more money on cable -- on people. >> i want to be clear. they are spending on that but they are spending even more on infrastructure projects and other initiatives like content. this is a big spending company. adding 20,000 people to review content is a drop in the bucket.
emily: we were looking at a twitter chart. quarter.ad a good shares plunged in part due to them saying growth would not be able to live up to the first have of the year. >> twitter has had this incredible change in perception from wall street. people are excited about it now in a way that they weren't but not a lot has fundamentally changed. numbers,look at those their video business is doing well. some things they have improved on. they have some of the same fundamental problems. >> another quarter of good numbers from twitter. they are way off from a couple of years ago. every day there was another story. they have come a long way from that.
there is something important to keep in mind. when you bring in 20,000 extra people you need somewhere for them to work. some of this is going into infrastructure. office buildings. we are we going to put this people? we have not talked about microsoft but that was a big factor, building data centers and the infrastructure around that. emily: i want to talk about apple. apple is coming up tuesday. what are we expecting? >> we are going to see the limits of their strategy. they went high-end and people aren't buying. not as many as analysts hoped. and competition from upstarts in china. emily: all right. bloomberg tech, covering facebook. thank you both. scarlett, back to you. scarlet: emily chang from new york this is bloomberg.
lisa: this is bloomberg markets. scarlet: time for options insight. allen, atning me is al gore of financial. rate to see you. it has been an interesting week. we have come round trip with these earnings. do you think with this earnings season we are now helping us normalize in terms of volatility? >> exceptional earnings. corporations, what i like is this pride -- price action. lows,ected the february and the failure we saw tuesday was tested wednesday where they took out those lows.
to get to this, look at where we are. that highways 50. 70% off the february high. i would look at this as a positive. it may feel like there is volatility. significantly.d to that is the midst of this recent action. julie: let's get to specific stocks. freeport max aaron -- freeport max aaron -- freeport mac the -- you are looking at this. >> when i look for stocks, they are in a decline. having difficulties. freeport has been trading
between 10-20 for the last 10 years. 15 in the midpoint. i'm looking long-term. this stock is still up over last year. i am looking at the 2020, that far out, the 2020 calls. one year for this stock to recover. the bottom of the range for the last 52 weeks, a low level like that topwe get back to of this range, this option will nearly double and you have a year and eight months for good things to happen. a call on copper at all? >> i like the fact that it is above the market. the the dollar has come back, copper has not dipped down behind that threshold. it is a long-term play on the
global economy. i think the commodities market are still battered and being. julie: have a great weekend. thank you for joining us. thank you, julie. handshakes and history. we speak to the senior director of the korean society on his is as of -- on if peace possibility on the korean peninsula. the head of to investments at royce. they were talking small caps in japan. small world after all. they are all here available. >> tesla is reporting earnings. isre is a story saying tesla forging the boring company an invoice that it is providing
chancellor merkel spoke at a joint news conference with president trump. of prime the region is importance. syria and iran are right on our doorstep. it is of prime importance for us and we will continue to be in close talks on this. presidentspoke to about eu exemptions from u.s. tariffs on steel and aluminum that are set to expire in. the house intelligence committee declared the end of its pressure probe saying in its final report and found no evidence the trump campaign colluded with russia in the 2016 presidential campaign. is challenging those findings.