>> i'm mark crumpton with first word news. joe biden is reporting he raised nearly $6.5 million in the first day of his campaign topping all of his rivals in the democratic presidential campaign. his campaign says nearly 97,000 people across all 50 states donated. the average contribution was a one dollars. president trump said he can beat joe biden in 2020 easily. the president appears to be reversing course about vaccines. house, he the white urged parents to get their kids vaccinated amid a measles outbreak.

in the past, he has said he doubted the effectiveness of vaccinations and suggested multiple times that there could be a link between -- vaccines and autism. rate --- measles as raised to its highest numbers in 25 years. the archbishop of colombo today appealed for calm on all sides. stages, theytial seem a little bit nervous and worried about the possible reactions from the other side. i assured them and not to have any fear.

also i gave strict instructions to my community not to do and also not to raise their hands against any other person. ministrynka health reduced its estimated death toll .rom the bombings approximately 253 people have died. global news 24 hours a day on air and at tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. ♪ lisa: this is bloomberg markets

of the close. caroline: i'm caroline hyde. we are at another record. the nasdaq up 2/10 of a percent. -- the s&pd high polled in a different direction. energy is your underperformer. i am also checking out bitcoin. once again, tether is under investigation. it's being investigated by the u.s. new york attorney general. lisa: we are seeing records across the board. the s&p, if you want to look there, you see oil prices even though energy is softer, it is not as is oil. oil is having its worst day since december. to rally afterng a very good year and after their incredible earnings. caroline: let's use a more top

calls. lynchf america merrill downgrading to neutral. analysts saying operating inefficiencies and it is unclear how and when the company can return to expanding margins. next, intel. analysts seeing a shift away into a cost-cutting story. , goldman sachs raising its price target on amazon. we are seeing a good day for amazon. the market is still underestimating the long-term and gains in advertising. big oil now reporting today before the bell, exxon

missing on earnings and production while chevron beat expectations. we will get to that but we will also talk oil. we now have the deputy managing editor joining us. the earnings were somewhat disappointing on the downstream. suddenly oil prices dropping after an incredible rally. president trump weighed in on what he would like to see with them. >> that was only one factor involved in that. for a couple weeks now, oil has been rising cousin the question about the iran waivers. questions recently about problems with russian oil. now, we are starting to see a analysts arere seeing less of a problem with those two factors. they are pulling back a little bit and saying let's calm down. caroline: you think this is more

of a supply concern easing than the market jumping to the attention of trumpets weeding? -- tweeting? the market doesn't listen so much to trump. >> i think it plays in it. we have seen historically where his tweeting and responses with opec have made a difference. a probably played into it. it was a big drop in there are a number of factors involved. meanwhile, chevron shares under pressure today. what management needs to give stockholders to give them confidence? me, exxon. oilxxon is building up its parts. it is producing more and more oil in the permian.

it is expanding in other parts of the world. what he did today was refining. $3 millionally lost per day on its refining operations are the first quarter. they need to turn that around to even off their earnings in the future. analysts will be watching for that. caroline: this is interesting with exxon because ever since it was born, the leadership have thought that combining downstream and upstream was the right methodology. of late, everyone has been getting rid of their refining unit. comes from the downstream part of the business. will he stick with it? >> he has said expressively that he is going to stick with it going down the line. during the call today, they said quarter will be better in this area. we will have to wait and see. you for being with us. coming up, detroit is back for

overtaking tesla and market value. we will discuss that next. this is bloomberg. ♪ lisa: the latest business flash

headlines. bloomberg has learned that renault plans to merge with nissan. each automaker would have a 50% stake. there would be equal representation on the board. uber wants to raise $9 billion for the biggest ipo of the year. they plan to offer 180 million shares at up to $50 each. would be valued at $84 billion. they are on track to make the trading debut next month.

ford says the u.s. justice department has begun a criminal investigation into emissions testing. they are cooperating but cannot predict what the outcome will be. the emissions testing could be flawed. a scandal has haunted volkswagen four years and cost $32 billion. talking of emissions, ford shares shrugging off today's disclosure with a better than expected earnings report yesterday. disclosureugging off that they are playing with the numbers when it comes to how efficient ford cars are. >> road testing. to translate, for the industry it is difficult to test vehicles out on the road were to test all the variations that the vehicles

might have. the epa allows for you to do calculating herself as an automaker of aerodynamics and wait and drag and a very technical details. it appears that that is what is going on. ford beneath the surface has been gaining the numbers from that perspective. they have disclosed that their practices were flawed. you see here we are a long ways away from knowing just how bad of a problem this is. we were a ways from that in february when they disclose to this issue. the investors seemed to be paying attention to the earnings yesterday which were much better than expected. lisa: right now, people do not seem too concerned about the emissions. we are seeing shares surging almost 11% today. market capitalization of ford has exceeded tesla for the first time in over a year. you can see how it has been a

sharp right up. down fore sharp right tesla. i have to wonder, is this reality that people are realizing ford can actually make cars? >> i think it is reality and execution. tesla has taken it on the knuckles for not hitting their numbers. not even coming in close to what the street was expecting. surprise.g a pleasant the cost cuts they are doing are starting to show through. you mentioned earlier volkswagen and what we talk emissions scandal, we talk about volkswagen is a first to come to mind. they were talking about defeat devices. to put in the vehicles to gain the system. and said we the epa think we have a problem can you

look with us? well to themtes as not being in the penalty box today. day for 40he best shares since 2009. it seems as though the discussion for tesla and the sec is not coming to a quick solution. made a comment earlier this week about sometimes not being on time. that is coming through in this fight with the f -- fcc. this boil down to what are the rules for him tweeting going forward. he was very much wrestling under the rules set to have to get preapproval for anything that was material to tesla. the legal team admitted that he had not gone to them to clear any tweets an advance.

the agreement was not working out. andjudges said it was vague go back to the drawing board and rework it. they are having trouble doing that. beat is the fact that ford expectations a good sign for general motors? >> it is from the perspective that two things they have in common which are trucks are where they are strongest. that's what the for ford last quarter. gm is bringing new trucks to market. building inventory of new trucks. doing a lot of cost-cutting just like fortis. that might come through as well for gm when they report on tuesday. caroline: we will see how the earnings continue to progress. a quick check on the markets. we are heading toward the close.

yields coming down on the u.s. 10 year. lisa: we have the dollar weakening today which is interesting. really week is oil. this is bloomberg. ♪

caroline: this is count down to the close. fu.: i'm in for scarlet we have a romaine bostick joining us. >> i was surprised this morning. right before -- when the gdp report came out, we saw the futures go from negative to positive that i started to drop again. then you saw that reaction in the treasury market. people kept buying treasuries and we saw the huge move particularly on the two-year. it makes you wonder what is the

data point we get to where the markets start to actually buy and to the growth story we're seeing? it seems to amplify the fuel to the fire that we might see a rate cut sometime soon. is a questionre of is there a contradiction between the rally in bonds and the rally in stocks or do we have basically slow growth in the u.s. and low yields around the world that are pressuring yields in the u.s. and it read that is on hold indefinitely if not a ready to cut. >> i want an explanation. [laughter] you saw gold rise today. people selling off haven assets at a time when the u.s. the in good shape. asia seems to be on solid footing. europe is not as bad as we thought. caroline: not awful but thanks itthe wealthy asian buyers, seems to be billionaires to the rescue. we inching in on a new record high.

we were just talking about ford, the best day for them since 2009. meanwhile, health care is doing well. chips are again a laggards. >> health care the best-performing sector this week. lisa: it is a relief rally. it was a dire situation a few weeks ago. you can say the same for semiconductors. let's look at what is happening in terms of indices. we have a key move at 10:00 a.m.. the nasdaq selloff. we are also seeing slowly but surely grinding that much higher. >> you are seeing a market that is trying to buy into the growth story. when you pull back the gdp numbers it is not a strong but some people think the rally will go on.

just because of something else. his the word of the day. caroline: we are just minutes away from the close. taking a look at the amazon affect. amazon is up 2.4%. other box retailers are down. some of the worst performers. after amazon put up a great first quarter beating earnings estimates. there also pledging one-day shipping for their top customers. this is what is bringing these other lee -- retailers lower. i spoke with an analyst who said this is not have an impact on the numbers of target or other retailers. they already have saved a curbside pickup and the infrastructure in place for the one-day shipping. she says one thing analysts are

not asking about, when is the cutoff for the one-day shipping? it is a very valuable service. the amazon affect is sending other retailers lower for the day. >> i wanted to recap what a terrible day it was for intel stock. shares following 10%. that is the worst drop since the height of the financial crisis in 2008. about $30 billion off of the stocks valuation. some analysts are warning that it may not have cut it enough and may have to cut in the future. in the afternoon, it looked like intel might get some good news that would help reverse these losses when the wall street journal reported that the company had been in talks with unit to sell intel's chip for mobile phone modems. it was not enough to reverse

these losses and intel is still looking at the worst drop since 2008. it is not all bad news if you are an intel shareholder. they are still of 10% on the year. caroline: let's get even more market analysis are you now. we are at another record high on the s&p 500. what are you hearing in the market? figures,t comes to gdp the initial reaction when you look at the headlines, it's great. and you lookdown at the underlying. it is just not that positive. if you look at the data, the consumer doesn't look as healthy . it is about trade and inventory. that is what is -- i have heard. i have had those on the other hand come out and say take a 3.2% as it is.

it is not as bad as people are making it out to be. >> they basically started looking under the hood inking about it thinking about the consumer. >> we have also seen amazon really pick up later in the trading. amazon is up 2.5%. oft has exacerbated some these gains because it looks like we weren't doing much of anything throughout the day. that is the story of this earnings season so far because if you look at the average move of any stock, it is completely flat. stocks arehink that doing nothing after earnings. but you look at the breakdown, the likes of amazon and ford and exxon intel mobil. it is two sides to the story. a $1ine: so close to trillion market cap. >> this is not just about individual stocks. you want to see something more broad-based. i want to bring in the head of

institutional equity strategy. thisaw the gdp print morning. what is your read on that with regards to how the market responded to it and how they should have responded? what is calledat real final sales to domestic purchases, it was not that strong. i was listening to the show earlier. it was inventories and some of the government spending that helped drive the beat. i think what is going to happen is -- i heard the comment earlier about the health care stock. that is interesting. the stronger the economy is, the more procyclical the stocks become. they are seen as defensive but if you have a change in the entire congress and white house in 2020, the political risk goes way up. what they want, health care is a stronger economy so there is no change and less political risk. that is a switcheroo for the health-care stocks. the big number that i think was

disappointing was inflation. the fed is failing its inflation mandate and as that falls away, they have an incentive to cut rates. the question is how proactive they want to be. >> as an equity strategist, is this the perfect time to buy stock given that there is low inflation and early solid growth in the u.s.? rates and deals work two ways -- yields work two ways. watchingthing we are is the short-term real interest rate. we are fairly bearish on the pe deflator. we think it's going to fall away in september. as a consequence, the real interest rate rises which directly causes the p/e ratio to fall. that falling pe with the fact that we are five or six dollars behind the street in earnings tells us the s&p will have a

hard time punching higher. we have a 2750 target. we continue to creep higher in the moment. how many people are talking to you about a potential rate cut? >> it has been talked about at length today. there are still contrarians out there saying look at the market. it is now seriously pricing in a rate cut. a lot of people are saying i just don't believe it. inflation is nowhere to be seen. next week with the fed meeting, that is going to be an interesting one. talk more about this earnings season? if you look under the hood it's not as good as some people think it is. at the end of the day, it's all about profits. it's what drives the market higher. what >> when it comes to this earnings season, i will say it is better than feared it i think

we can get more into it. less, theyok at a estimate into quarters of earnings declines. as awould classify recession. it would be a deep one, but it is still a recession. >> the market does not care. a record high of the s&p 500. is where we trade. we saw a pickup for the close. some of the key stocks to watch for the likes of amazon. >> we should note that the nasdaq also has a new record high. itis interesting to see how -- how much fluctuation there began -- became a strong as it was. >> a lot of the big gainers this week worked the big companies. it was a lot of the smaller companies. anthem, ford,.,

not to despair so stocks, but those of the companies you would michael -- really think would lead the market higher. caroline: the heavy lifting was volumes. up 20%. the dow is up 14% on the s&p 500. what are we watching at the close? >> that was an interesting close with that bullish push to the end, with the s&p 500 and nasdaq at record closing highs. away&p 500 about a point from its all-time closing high. lower, all of this commodities in bid for some of the haven assets out there, the yen and bonds. we put this in the context of some of the other risk assets, something interesting is developing. not everything is fitting together. that's just volatility could be ahead. in the blue, we have the nasdaq amount s&p 500 in yellow. we have oil in white. we have the shanghai composite in orange. white, that is copper.

we see that they are all dipping down on the week. the question is whether that risky action, filling up those bleeds into the s&p 500, which is slow and steady higher. a connection of some sort come up especially when you have assets rallying on the week. >> we just are the big surprise today was that we got a gdp report that showed growth of 3.2%. what's everyone talking about? a rate cut sometime this year. you can't deny it if you look at the fed futures. rates traders fixating on that week core pce inflation data at 1.3%. personal consumption at 1.2%. if you look at this chart, it is a spread between yields on april fed funds futures and october fed funds futures. october futures are trading at 15.5 basis points below the yield on april futures.

that signals that traders think there is more than a 50% chance of a rate cut by september. if you look further out, through january of next year, the chance goes up to 71% for a rate cut by january of 2020. caroline, short-term interest-rate traders are growing more confident that a rate cut is on the way. it is just a matter of when. caroline: we have record highs. the nasdaq and s&p 500. we thank you very much indeed. is very. -- barry. you think the next move is 5% lower than higher for the s&p 500. what is the key risk echo -- risk? barry: the key thing i would say is the growth differential and the repatriation inflows could drive the dollar higher. the u.s. is the cleanest shirt and a laundry in the world.

a you look at that, there is inverse relationship between the dollar and earnings-per-share. the dow, s&p divergence could be because the snp and nasdaq have more growth stocks, and would benefit from a stronger dollar. s&p earnings would be under pressure in this scenario. that's one thing that's not being talked about adequately. the currency risk. on the flipside, risks that fears that things go higher, what happens if the u.s. and china come to some sort of trade agreement as they seem poised to do. how much would that sent markets higher death with that said the markets higher? -- send markets higher? no future president is going to give up the powers willingly. we have a president who like to exercise power and likes to keep people off balance.

we can't assume that a trade deal will be smooth and easy. why wouldn't europe not be next in the firing line? it's a popular political issue to beat up on china. why wouldn't we see trade reminds before the 2020 election? it's a fallacy to think that trade is going to be solved in the next month. it's going to a with us for a -- be with usdes for a couple of decades in terms of exercise of political power through the trade front. we have seen world trade volumes are contracting and slowing. this whole thing about trade as a reason to go higher seems to be grasping for straws. romaine: why are we seeing more volatility in this market? >> given everything he is just mentioned, you would think they would see the traditional reading, but we're not seeing that. >> even on the days where we do see volatility higher, the fact but the days that stocks are moving forcefully higher. it is not the commendation week

typically see -- we typically say. the fact of the matter is, -- c. -- see. we're not seeing much volatility present -- because we are going higher. yes, we saw some smaller names like twitter seeing large gains today, if you look at some of the big heavyweights, like microsoft, amazon and facebook, on a point spaces, how much they really moved to the s&p this week, they make up for a net 40% of the move higher. they are acting as a big push in this market. >> this is a key question here. is tech the big beta trade here? >> it potentially is. coming into this week, there were many questioning with the likes of microsoft, amazon,

facebook, would this be an issue for the market? it wasn't, because each came out and stunned on their earnings reports. we will hear from apple next week. we will hear from alphabet. we will also hear from qualcomm. much of the focus has been on semiconductor stocks. we have seen such a run-up higher. we saw that start to break this week. next week, when we get qualcomm, that is the number one and the philadelphia semiconductor index. we will see whether that breaks the camel's back. we are anticipating certain u.s. earnings. theyou are worried about u.s. dollar jumping, is it time to get internationally focused, and if so, where? >> the dollar tends to be procyclical. when the u.s. is growing better than the rest of the world, that is not indicating much growth abroad. i think the europeans are in

trouble until china stimulates even more. nesepolitburo, the chiones politburo, has deemphasized some of the floodgate irrigation style financing that they did in the first quarter. if you look at first quarter stimulus in china, it has been strong for every year for 10 years. not a deviation from the norm. the zap that worries us is when the chinese pmi seasonally dips down from april to may, april to june, all the way through the summer. and then all the risks we site, including a flattening of earnings growth. we are expecting an acceleration of earnings growth, continued strength through the year end. we think earnings on a forential basis are flat the s&p on a dollar basis.

i think it will just be a top summer for the market. --top summer for the market tough summer for the market. i think we'll see a pullback of 5%. romaine: there are people who are fearful of missing out. people ask you how to protect themselves will also getting the upside, what you tell them? 50% of the stock is owned by 9% of the people and the media baby boomer in 1958 are 61 years old. they and their parents owned more than two thirds of the market. i don't know too many 61 euros who have a fear of missing out. they mostly have a fear of getting annihilated. to work ando return relearn technology, which would be a disaster for most people my age and older. i can to you there's not a lot of fomo and the wealthy people

that i talk to. ofs usually, i made a lot money in the stock market, it had a bottom, but if you write about an l-shaped earnings and the gdp outlook, they don't care. the just count the word "foga," fear of getting annihilated. thank you for your insight and that acronym. that does it for the closing bell. what you missed is next, looking at president trump's trade talks, japan's prime minister visits the white house. this is bloomberg. ♪

>> we are live from bloomberg world headquarters in new york. i'm caroline hyde. romaine: i'm romaine bostick. stockne: this -- the markets closed at a record high, for the nasdaq and s&p 500. u.s. gdp picked up more than expected in the first quarter, but details behind the headline numbers show some causes for concern. trade talks about with president trump meeting with japan's prime minister at this hour. will they gear for a round of new talks in beijing next week. worries about his market power while merchants feel a page. it will talk to one seller who was having third-party merchants survive on the e-commerce giant. growth in the u.s. economy accelerated in the first quarter. gdp growing by 3.2%, beating estimates. theident trump cheered on better-than-expected number on twitter, while the chairman of

the council of white house economic advisers said the boost will have economists revising their forecasts upward. >> the headline of 3.2, as you know was a blockbuster number. if you add to that, the first quarter tends to be about a percent below the rest of the year of the last 35 years. this -- 25 years. this should be something that would revise forecast for the rest of the year. romaine: let's bring in bloomberg economics editor peter coy. the point he was the headline number. so they do celebrate. when you strip out trading and some of these inventory numbers, we're down to 1.3%. the exact opposite has been occurring. after this high number one out, economists revised downward their estimates for the second quarter in particular. it's a one-time bump that will be reversed. if you have a lot of inventory accumulation in the first quarter, which you did, in other

words, products are being produced, but not sold, at some point, you have to clear shelves.s -- shelveyour meanwhile, entree, a similar trade, an -- on similar phenomenon. in the fourth quarter, there was a hit, because companies did a letter production to get ahead of the tariffs, then they cut back in the first quarter, so the result was, -- this chart is very interesting. the white light is gdp. and i spot a 3.2%. but if you take out inventories -- a nice bump at 3.2%. but if you take out inventories and trade, it is down to 1.4%. it just goes to show that the headline number is not quite as robust as it appears. caroline: therefore, given that we have had so inflation on a quarterly basis -- slow invasion -- inflation, is the fed going

to cut? yeah, and the last segment, there was a lot of market vetting on that happening. the fed will be meeting next week. nobody is expecting a rate move coming up right away. one thing i do predict pretty strongly is the fed will change the language in the statement, because the last data said economic activity slowed from its rate in the fourth quarter. hard to say that now after 3.2% growth. romaine: even though we won't get a rate move, most likely next week, when we get a sense of how the fed is thinking -- we will get a sense of how the fed is thinking. what is the dot on the political optics? we've had some of pressure from trump and the white house. now it seems like there's a psychological effect that any bee that the fed makes, what

noticed for the fundamental reasons, but for political reasons. peter: i 100% agree with you. i've been writing about this since trump took office. he was appalled at the early going, he was appointed some centrist picks for the fed. they thought, maybe we don't have anything to worry about, maybe trump as a business person understands that the fed is sacrosanct, the one organization you don't mess with. now, he seems to embroil the fed in the sink on a policy -- same kind of policy we have seen with his cabinet picks. that makes it hard for the fed to do anything without being perceived as political. caroline: whether they are tried to get ahead of inflation, if they cut, they will say that is trump. of trump, talking about

he ways he is gyrating gdp, is speaking to shinzo abe right now. we have chinese talks next week. respecting anything in terms of chinese trade deals? peter: it has been a slow-moving thing. they wanted to have a deal by march 1. that did not happen. some of the tariffs on china are on hold for now in the hopes that a deal can be struck. xi jinping said some things that gave ahe -- sense that he was reaching out and trying to send a message, we cognizant of your concerns, but, it is one thing to say you want to protect intellectual property and it is another thing to do it and provide verifiable enforceable mechanisms. that's what the u.s. is insisting on. they're going to china next week, then the week after that, they are coming to the united states. iran load -- hey they longer to go with china and japan.

caroline: we will see how those negotiations continue. we thank you, peter coy. we are talking with the workplace messaging companies direct listing. this is bloomberg. ♪

caroline: time to look at some of the stories turning across the bloomberg universe. some red flags flying in the credit car industry after a key gauge of bad debt jumps to the highest levels in seven years. some loan companies have decided they want collect. rose three point 2%, the highest since the second quarter of 2012. bloomberg.com has a story that it says toronto and vancouver

has seen the biggest net inflow of millennials in 12 years. it's one of the reason that housing is meant to remain strong. the -- the populace of 20-24 euros 12 by 93,000 last year. a book of them, from abroad and are flocking to the cities and driving economies and cultural scenes. is reportingtter that all coal mines are getting a solar powered makeover. coal mines and nuclear sites around the world are being torn into wind farms -- turned into wind farms. storiesfollow all the on the terminal at bloomberg.com and tictoc on twitter. romaine? romaine: going public in a different way. has a minuteogies plans for u.s. realtors to file through an unusual direct listing. the workplace messaging company will list its shares on the nyse under the ticker sk. for more, let's welcome eric newcomer.

slack not a startup anymore. this direct listing, just so i'm clear, slack does not get any money doing a direct listing, does that? eric: that is the advantage. you avoid dilution. if yorkie have all the money you need, and they have more than $1 billion, this way you can go out, and not underprice the shares to give your investors a pop. you said it at the right price and let the market trade. we raised a ton of money from investors we like, and now we will let them sell their shares to the public. caroline: spotify did exactly this previously. people feel that it went well. will we see banks get cut out going forward? did it,otify, when they it was weird. it was a couple doing things in their own way. now it's eating more likely that other companies follow suit. there has been a discussion whether airbnb would do something similar. we will see.

if you are not capitalized company coming -- company, the doesn't burn money, and is willing to act differently, the direct listing route make sense. romaine: you say, burn through money. this company does not make money. eric: it does not make money. $140 million give or take a year is a lot of money, what -- but when you compare two, lyft, it's small. romaine: how is slack setting this up? eric: i think it is 10 to one. there are some decals -- details that were not clear. we might get more information as that plays out. had a similar controversy, where its founders are going to have majority control. dramatic 2017, went to one share, one vote. we have the biggest of any going public right now, doing the traditional investor control, lyft are going

to google, facebook way, where founders have a lot of power over their company. caroline: founder-led seems to want to keep control. we're going to get the roadshow in york on monday. eric: i think it's london on monday, new york on tuesday, and san francisco later in the week. they will be all over the place. expecting a public listing on may 10. this is in the final stretch to get uber. we are figuring out what the exact price will be. $120e down from this major billion, try to set expeditions lower, 80's-90's. we will see if that works up. process,he -- in the of talking to investors, now for

the public listen -- listing. goosebumps.habvve after following this coming for all these years, they're finally going to be a public traded company. should point out bloomberg data, the capital of bloomberg lp is an investor in slack. let's give you a quick check of the latest business flash headlines. the u.s. justice department is intoning investigations emissions testing. the automaker says it is cooperating, but can't reveal will be.outcome the emissions scandal has haunted volkswagen for years, and costs $32 billion. we some reported earnings that ted, heardthan expec by bad weather and the u.s. china trade war. adm also saw equity margins shrink. to dominateei was

wireless technology, investing in the goal as -- at a pace that few copies can match. they spent 13.5 3 billion on research last year, more than double the amount last year. the trump administration has accused while way of helping of helping- huawei china spy. romaine: coming up, one of the world's why this traded cryptocurrencies is underscore me from the attorney general, now a bull market is going heat. we will have the next. this is bloomberg. ♪ moving is hard.

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♪ >> i am mark crumpton. christopher wray says china poses the most serious threat to the u.s. he told the council on foreign relations that china has a plan set out in five-year increments to achieve dominance in critical areas. are using an they expanding set of nontraditional methods, lawful and unlawful. >> china seems determined to steal its way up the economic ladder. by noclear, the u.s. is means the only target. >> he also defended the fbi

against president trump's claim of dirty cops at the bureau. he was asked if the rhetoric damages the standing at the fbi. he said "this is a topic near and dear to my heart. rumors of damage are greedy asleep overstated." the united nations secretary-gener spoke today at the beijing forum, praising china for investments of more than 120 $5 billion on renewable energy in 2017, saying they played a bigger role in in securing the agreement at last year's climate conference in poland. the united nations is supposed to support the alignment. to make the most of the opportunities of the initiatives

for maximum sustainable development. the initiatives have been criticized are making poor nations going further into debt and dependent upon beijing. president xi jinping promised to get rid of corruption & high standard free-trade deals with more countries. , president trump promised to fight for gun rights national guned the association. the nation's largest gun rights organization was pivotal to mr. trump's victory in 2016. the pentagon may send 300 more u.s. troops to the u.s. mexico border. currently, troops are prohibited from having direct contact. the troops would be in support driving buses

with detained migrants and providing meals to them. it would include dod lawyers helping to process the migrants. there are currently 2500 active duty troops at the border. plus, about 2000 national guard troops. global news 24 hours a day on air and on tictoc on twitter powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. >> thanks. , thebreaking news on bayer german health care company. confidence,ng a confidencen motion, losing confidence of investors. this confidence is not legally these types of votes have led to departures in the past. caroline: we thank you. one of the most widely trading

cryptocurrencies, an issuancetion into the for fraud. the news this bleeding into the broader crypto market. look at the moves at the moment and to discuss the selloff is the cofounder and managing partner of a company. wonderful to have you here. talk to us about the tether element. take, lindrypto you end against? >> we work with tether a lot. it is one way to scale the operation and provide financing. what we have been seeing today is something going around for

quite a while. i am pleasantly surprised how the markets are taking it. bitcoin down 5% is the equivalent of dow jones being flat on the day. crypto is that volatile. two reasons, there are other great alternatives, and companies are finding responsible ways of dealing with that. with us, the interest we are paying on tether comes with a conversion protection guarantee. we sell it for dollars and we owned your dollars. the clients had been super happy, especially today. >> do you think some of the criticism about tether is overblown? >> who is to say? that is for the agm prosecutors to examine. ,f there was criminal activity not following fiduciary obligations, they should look into that.

the space needs this clearing , socleaning up, so to speak that is the way the institutions will come in and how the wide adoption will come in. we are to see that with fidelity services. custodial i am super excited. i am here to take some meetings with hedge funds and family offices in new york. with thesuper excited overall space and what we have to offer. i want to take a moment to thank the federal reserve and the ecb for the extremely low rate environment. it makes all the more viable proposition we bring into the financial sector. yuan what your business -- caroline: what your business does his takes crypto and gives the money, not to sell the crypto come up but to take money and use it and buy houses and

assets. i am interested in the so-called maturing of the space. many think that lending space you are in is a wild west, not regulated. does it need to be regulated to get more institutional players in? >> my background is in parliament passing legislation. we have been in thin tech for more than 10 years. -- fin tech for more than 10 years. entrepreneurs in the space can develop useful products. that is something we would like to see. that is needed for the maturing of the space. processed or are about to cross the mark of $500 million on the platform. it is gaining traction. lendou pointed out, we lind against crypto assets. people don't want to sell.

they want to keep it. on occasion they need access to liquidity. one of the more interesting mortgage.a crypto he holds 95% of his wealth and crypto and hates selling any of it. he wanted to buy a home in amsterdam. he borrowed from us to do that. >> i am fascinated by that. you know when you take out a mortgage there is that interest rate risk from the time you get a quote and you close. in certain markets, that can drag on. with crypto and to tie it to that, where is the protection? how will i know i am protected? >> we have fixed rates and they

don't change. between 8% and 16% year, so that is the certainty. you said a long time of approval , with us, it is instant, automated. you get an instant credit line and get your money next or same day deposit via bank transfer. we were able to close the deal within a day, 24 hours. >> a fascinating subject. i want to thank you. we want to bring you some breaking news on cosco with regards to a share repurchase agreement. there is a $4 billion share buyback, also boosting its dividend,data can -- up from $.57 a share. analysts were expecting $.62.

costco higher on that news. this is bloomberg. ♪

caroline: breaking news. president trump's leaking at the white house as he meets with shinzo abe, saying trade negotiations with china going well, but is complex. we will bring you updated news from the discussions in a moment. romaine: i want to turn to amazon. that company is evolving from a partner to competitor. it started creating its own products. now merchants are feeling the pain. joining us to discuss is the cofounder and ceo of avenue seven media.

selling a guy on amazon basketball hoops. this is years ago before people have figured out you can exploit the amazon platform. that fizzled out. why? out. hasn't fizzled it has changed dramatically. it has become harder to make a profit as a third-party seller on amazon. we got a call from amazon in 2003 asking us to sell basketball hoops on amazon. we said, you guys are selling books. they just launched a sports and outdoors category. it has been a long journey with lots of ups and downs and we have to change in it a read constantly to keep up with amazon the changes more than any company we have been involved with. haveine: the lessons you learned you take to other retailers and educate them. every mistakede there is to make on amazon.

what are the key ones? >> everything is customer-centric. haveat regard, the changes made us better at selling products and taking care of the customers. in that regard, it has been a great business. amazon has raised the bar continuously so we can get better at serving the customer, and that translates into sales and revenue. it is different now than 12 years ago, 15 years ago. more frustrations with selling on the amazon platform now than before. romaine: what is the appeal right now in this moment for a small business to be on amazon? the exposure of the platform, or the fact they handle the shipping and handling? what is the appeal? >> it is half of the online market share in the u.s., so it is huge. second place is ebay, 7%. i say to clients, friends, and

colleagues, if you want to be online in america coming have to be on amazon. if you are not, you are not online. there are ways to do it. birkenstock came out and pulled all their products from amazon. if you type in birkenstock on amazon, you are not getting it from corporate. if you don't go on amazon and protect your brand, you are seating that ground to competitors, counterfeiters, amazon to beat you. it is twofold, a huge market come and you have to be on amazon to protect your brands. caroline: elizabeth warren and other politicians are saying they feel amazon is intriguing to third-party sellers well enough. they feel they are competing too hard against them, even though the data shows amazon has not made that much headway with their own brands, but do you

feel amazon is competing too hard against third-party sellers? a i have been able to make good living for myself for a long time selling on amazon. there is truth to what elizabeth warren is saying. it is becoming harder and harder to make profit. amazon just announced record profits. i promise you the third party sellers are not seeing record profits. now you have to pay per click and pay for advertising to get amazon traffic to your listing. when you get them to listing and sell that product, you are still hang a fee to them comes so the margin is shrinking for the sellers, but amazon introducing its own products is just the tip of the iceberg in terms of making it more challenging for amazon sellers to succeed. romaine: what is the solution? do they pushed back and go out on their own? or do you get regulation to pull amazon back more legislation?

what do you envision? us the data. give third-party sellers all of the data for every product details page you have. level the playing field. thank you. it has helped to scale our business without buying a new warehouse. thank you for this amazing platform and teaching us how to serve the customer, but give us the data. it is not fair you can take that data from a product we are working hard to sell and use it to make your own products. if you give us that data, and i was just having a conversation with the potential client, a former amazon advertising and marketing person, working for this firm, and he told me, you have no idea how much data amazon has on these listings. i said, tell me. tell me what they are. he says i can't tell you. i have a contract, but it is massive. share that david with me so we

have that data with me so we have a level playing field. we can get more information on how to serve the customers better. caroline: would you invest that learning back into the amazon product suite or taking that data and selling it in other areas and different verticals? >> sure. if you want to sell more products and have more third-party sellers do better on his platform, then he can give that information. are some sellers that only sell on amazon and they do great and choose not to sell on other channels. you need an entire office to succeed on amazon. you can't just have one person and hope to do well on amazon. you need a full team. with someone take their information? i think it would help them sell their products better. with a take that information and

offer the product on their own site? sure. can i get as many eyeballs as jeff bezos can? caroline: thank you for joining us. amazon, orake on indeed get the data. we return to the trade talks between donald trump and the prime minister of japan, shinzo abe. trump is saying trade negotiations with china are going well and it will be complex with rights it. we will return to the news in a moment. this is bloomberg. ♪

caroline: japanese and u.s. leaders at the white house. ,reaking news from shinzo abe saying he is looking forward to discussing a trade deal with united states. we understand the chinese trade talks are going well, but brexit

is causing some concerns when it comes to trade. we can do the latest business flash headlines. same for deutsche bank has a cut its full-year target for revenue. it expects to be flat this year. its investment division had its worst quarter since the financial crisis. postedk of scotland first-quarter profit that beat estimates, but it sees challenges from brexit getting bigger. female thin japanese bank sheutive has told her team will not hold gatherings that are unproductive. others have said the post-work links ritual discourages women from remaining in the workplace. that is your business flash update. romaine: the tribeca film festival kicked off this week in

the lower manhattan neighborhood. carol massar set down with the cofounder of the film pistol and -- film festival and robert de niro. combedprogrammers have the globe and gone through over 8000 submissions to pick what is they believe are the voices to look forward to, as well as the voices to look back at. you are looking back at the work of francis ford coppola. he doesn't stop. he is still working on apocalypse now. you have a remastered in dolby, watching apocalypse now and have francis ford coppola talk to steven soderbergh, who is technically forward thinker in

film. the two of them have a talk. part of tribeca is always about expecting the unexpected. >> i'm curious about the streaming world. ,pple made a big announcement netflix, amazon. how does it impact what movies are made, how they are made, and what constitutes success? >> netflix. >> yeah. >> listen, they love movies and are doing a lot. irishman. we had a lot of trouble getting it started. i want this. i want that. it is just a headache. , still.the money they came in and it was a very ambitious project we had been working on for years. they just let us do it. that is very important. the format, how it is presented,

they know we have to present it in a certain way. they had their way later on, but we are working that out. havere quite fortunate to netflix come into it. producers,tors, or's, actors, there is more work to him that is exciting. you can tell your story. it is no longer being told to you. you can only do it within 90 minutes. you have to have commercial breaks. for you are free to tell your story. whatever the weight of the story is, it will be how you will be equal to put it out there into the world. i think it is really exciting. massar: thanks to carol for bringing us that interview. magazine'sr from the reporters and editors every

saturday and sunday on bloomberg television and radio. you know what i love about this film festival? you actually do get undiscovered talent making the rise, ryan coogler, martin scorsese. there is a film i want to see called lucky cram all. -- lucky grandma. dies and has aor pilot cash and she steals it. caroline: how can i see this film? romaine: tribeca film festival. caroline: i am taking by the fact they seem to be a supporter. romaine: some of the other films have pushed up against it, but this time, they seem to be embracing it. caroline: don't miss this. alphabet reports first-quarter earnings on monday. apple reports on tuesday. romaine: the fed announces its rate decision on wednesday, and the april jobs report next

friday. caroline: that is all for "what'd you miss?" romaine: bloomberg technology is next. have a great weekend. this is bloomberg. ♪

♪ emily: i am emily chang in san francisco. this is "bloomberg technology." slack is going public through a direct listing. new details are out. why the company is taking this nontraditional route. tumbles, the latest sign the rebound and semiconductor stocks may be