Aabusing its dominance in web charges. Filing charges against the company. I want said googles methods cheats consumers and competitors. Our preliminary view in the segment of objection is that in its general internet search result google artificially favors its own Comparison Shopping service and that this constitutes an abuse. That case could cost the tech firm billions in fines, maybe even force google to make changes to its Business Model. And it is drawing comparisons to the antitrust case against microsoft that dragged on for years. Despite that news shares of google shares rose slightly today. Josh lipton has more on what the charges means for google all stock wildly held in mutual funds. Reporter the European Commission delivered a blow to google this morning, not only filing antitrust charges against the tech giant but also announcing a formal investigation into android. Googles mobile operating system. Google quickly shot back. Look at the tremendous innovations and evolution weve seen in the Search Industry in the past few years. We cant standstill. We face enormous competitive pressure. Well respond. Separately well have a discussion with the regulators how we do that. Reporter this news comes at a tough time for google. Its stock has gone nowhere in the last 12 months as investors worry google has missed the boat in social media and ad dollars are moving to Companies Like facebook. Worst Case Scenario google could face a potential 6 billion fine. The company does boast a cash pile of 60 billion so that fine though serious wouldnt be a huge setback. More broadly regulators could force google told make changes to its search business. That could have a Chilling Effect on googles ability to remain innovative. Google became the dominant Search Engine around the world by writing better algorithms than anybody elses. Theres the potential stock impact. When microsoft faced antitrust charges in europe several years ago it stock underperformed for the market. For google tell stock impact may be more muted. The irony is this overhang comes in when the stock has become mature. It doesnt have an impact on the valuation. If this happened five years it would have. Reporter a final eu decision could come by the end of the year. However, Corporate Governance experts say google should resolve this issue as quickly as possible. Otherwise they say such charges can have an impact on recruitment, employee morale and brand reputation. For nightly Business Report im josh lipton in san francisco. Victor anthony now joins us to tell us what it means for google stock and investors who own it. Victor welcome. Good to have you with us. You hear some of the thing that josh lipton just said. What is the risk here . What is the potential cost here for google in terms of fines. Josh had one number. In terms of Business Model risk and in terms of risk to profitability. Googleas to the eu investigation is one of multiple defense overhangs that the stock faces this year. Specifically on the eu ive heard 6 billion number maybe goes to 10 billion. The company should end the First Quarter with 67 68 billion in cash on the Balance Sheet to generate between 12 and 15 billion in cash this year. So it would be somewhat of a small hit to the Balance Sheet, i think, roughly, 9 per share. Finish your thought. The real issue, my real concern is really the business practice changes. If that occurs i think you could see some meaningful risk to googles earnings trajectory over the next several years. Are come par stones the microsoft scenario that occurred a few years ago with the eu are those fair comparisons or not . Somewhat fair. Somewhat fair i think. In combination of all the different risks that the company faces, you know, competition from facebook twitter, theres concerns about slowing search growth theres investments that are pressuring the margins. You look they may lose apple as a partner in the next two months. Those are things all put together will keep the shares range bound. If you own it hold it. If you dont own it i dont see any reason to get into the stock right now. If you own it take some profits. Reallocate those profits. You have a hold rating on the stock. Your price target is what . 608. 608. Basically you think its not going to move very much. Very quickly what would google need to do to get to you switch from a hold to a buy . I think they need to kind of work their way through the eu antitrust investigation. They need to convince us the business is holding up. Very interesting. Victor thank you very much. You left on a high note victor. Thank you very much. Well its not every day you see one of the most powerful men in the world get glitter bombed while speaking about economic stimulus policies but thats exactly what happened today in frankfurt when European CentralBank President mario draghi took to the podium. The most eventful press conference of mario draghi minutes into him reading the introductory comments someone got up and started to throw paper and confetti over him. She had to be escorted outside of the building. The question mark is how could she actually enter the building and the answer most likely lies in the fact its easy to get a press card in europe and germany. With a press card you can have access to the ecb. Switching to Monetary Policy now, mario draghi has not said anything very new. Hes quite optimistic about the outlook for the economy but saying that is depending on the ecb implementing quantitative easing and to at least september 2016. If inflation picks up a lot faster than expected then ecb could stop the program earlier than september 2016. He rebuffed criticism perhaps theres not enough bonds out there for them to buy because a lot of bonds here in the eurozone trading with yields and ecb said earlier they are not going to buy anything with negative yields lower than the deposit rate which currently is at minus 20 basis points. But for now things look relaxed. Next time we get the new stock projectstions from the ecb. The eurozone looking at the lower euro Rate Exchange which is helping the eurozone. Now to china where the worlds second largest economy grew at the slowest pace in six years. Investors are now looking to see whether the government will take any additional steps to pump up growth. Reporter chinas gdp came in at 7 for the First Quarter. This is largely in line with expectations but the slowest level of growth the country has seen since the financial crisis. The focus was on the march data. Instead of the pick up everybody was expecting we saw a tapering and that suggested to many people here the economy is decelerating and headed for slower growth. The data also raised expectations among economists that policymakers are going to have to step in and take some action. Some combination of Interest Rate cuts or cuts to the triple r which is the amount of cash that banks have to have on hand in reserve. The authorities dont seem to be hitting the panic button just yet. In the run up to the release of the data the chinese premier actually came on state radio and spoke to the public directly to say that theres a downward pressure on the economy but that Everyone Needs to adjust to this and that the country needs to prepare for further economic challenges. The employment number came out at 5. 1 . And the interesting thing was a commentary around it because officials said that the jobs market here is stable. Time and again the government has said that the employment is really going to determine just how aggressive the government is in trying to prop up growth. To wall street now where stocks rose on speculation First Quarter earnings may not be as weak as previously thought. The small cap russell 2000 index closed within a record. At the close the Dow Jones Industrials average rose nearly 76 points 18,112. The nasdaq gained four and s p 50011. Price of oil really jumped up nearly 6 closing at 56. 39. Its high for the year. We have more now on the recent rise in prices and where they may be heading. Reporter two reasons crude Oil Prices Went higher. First eia inventory report from last week a build of 1. 3 billion barrels. Much smaller than traders were expecting. But also geopolitical tensions on the radar, making traders nervous. They are watching the situation in yemen very closely. Now the fundamentals right now still say that supply demand situation is working itself out but will take more time to rebalance. That would imply we should see a lower crude price for the market the technical obviously thinking otherwise. I do want to point out it was near a 6 move today but weve seen some very volatile swings. Move of 4 to upside or down side 22 times this year. Traders are saying we could see more volatility ahead. This doesnt necessarily indicate the next direction for the market. For nightly Business Report. Royale prices are rising now. They were low for quite a while and that has hurt parts of the u. S. Economy. According to the Federal Reserve beig ebook the drop in prices forced Energy Companies and some manufacturers to increase their layoffs. Survey says the rising dollar is having an adverse effect on some industries. But that the u. S. Economy overall continues to grow albeit at a moderate pace. Today in an interview on cnbc treasury secretary jack lew said despite weakness in Economic Data the u. S. Is in good shape especially when compared to other economies around the world. I talk to Business People around the world and my colleagues my counterparts around the world. I dont hear a lot of questions about whether or not the United States is strong and continuing to be headed in the right direct. There are a lot of concern about the Global Economy. And the performance between the u. S. Economy and other parts of the Global Economy. The secretary also said confidence is up consumers have more cash in their pockets and that hes not concerned about the strengthening dollar. Another challenge that does face the u. S. Economy is income disparity and today on tax day fast food workers across the country and across the world took to the streets to demand higher wages. In Brooklyn New York demonstrators blocked traffic this morning and on manhattans Upper West Side they staged a die in. If it wasnt for me you wouldnt have your subsidy. Chicago, washington, d. C. And los angeles were among the 200 plus cities where workers made their presence felt today. Consumers could see higher prices if the going wage hits 15 an hour. These companies have to figure out how can they ultimately both cover that cost either through higher menu prices or through their menu mix and at the same time try to manage the workforce so that they dont lose workers to someone else and they keep them staffed. Its a very tough proposition forrest rant companies. 23 states in all will raise their minimum wages this year but none of the state minimums are scheduled to rise above 10 an hour. One Seattle Company is really redefining the term minimum wage. Dan price the ceo of the credit card payment firm gravity has decided to close the pay gap in a big way. We have a really exciting situation here. Were going to have a minimum 70,000 pay rate for women that work here. All of his 120 employees will now make at least 70,000 a year. The changes will be made over the next three years and price will take a pay cut. His salary of 1 million will be 70,000 a year. The changes will reportedly use 80 of anticipated profits for the year. But price believes the move isnt just the right thing to do. Its Good Business. With leadership includes doing whats right even when theres not a direct kind of one for one carrot or stick. In the end when you run your business that way for the future youre going to create more value in the long term for everybody not just those folks that got the bump. Before the increase the companys average salary was about 50,000 a year. Still ahead another company that made social responsibility its mission is about to go public but will investors embrace the strategy . The streaming Video Company netflix out with its Quarterly Results late today it earned 38 cents a share and that was a big miss. 31 cents below estimates revenue of 1. 5 billion was in line with estimates. That sent shares up as much as 12 in after hours trading. Julie boorstin heres the takeaway from that report and why investors blow off that big earnings miss. Reporter investors shrugged off a earnings miss. The company added 4. 9 million new streaming subscribers, more than half of those from overseas. As the Company Continues its global roll out. Domestic subscribers grew faster than expected as original contents like house of cards helped to add and retain customers. The Company Forecasting the addition of more new subscribers in the Second Quarter than wall street analysts projected. Reed hastings writing our original content strategy is playing out as we hoped driving loss of viewing an economic way for netflix woil bolstering the positive perception of our brand. With the stock shooting up to a new all time high it seems to be boosting positive perception of the stock as well. Back over to you. That was julie boorstin. She will be back shortly with a story on epsy thats getting ready to go public. Bank of america swings to a profit and thats where we begin tonights market focus. The results so boa is starting to recover. Still its earnings and revenue missed analysts estimates and Trading Platform fell short of its rival jpmorgan. U. S. Bank saw its profit edge up by more than 2 as its revenue and loans increased. Overall revenue trailed consensus and net interest margins which is an more measure of lending profitability fell. Shares were off a few cents. Tharls Charles Schwab missed. Deltas earnings beat the street while revenue came right at the expectation point. This marchs quarter was the best in its history, but the carrier is cutting some internal flights because of the strong dollar and falling oil prices. Shares were 2. 5 higher to 44. 20. Hca holdings upped its full year guidance. The hospital operator saying higher admissions and emergency room visits will help revenue results for the quarter and for the full year. Shares popped 2. 5 79. 24 the close there. Target is close to a settlement with mastercard over its 2013 data breach according to the wall street journal. The settlement would see the retailer reimburse Financial Institutions about 20 million in costs related to having to reissue credit cards. Target is in the middle of a separate negotiation with visa. Shares of target fell more than 1. 5 to 81. 96. Mastercard up a bit it closed at 89. 25. You might have noticed the ipo market has cooled down this year as the number of Companies Going public slowed dramatically. This week thats changing. Reporter its a lousy year for ipos but thats about to change. The collapse of the Energy Business was a big problem but very few big tech details. First bo tech firm priced at 17 and dounled its value on its first day of trading. They specialize in cancer immuno therapy strong cash flow and leadership position in the market. First epsy online marketplace for handmade goods. Still losing money but has a very loyal following largely but not exclusively among men. Virtue financial, Global Market maker. 10,000 securities in 30 countries. They make money by capturing small spread between the prices of stocks. Finally my Favorite Party city. Pretty serious business. They are the leading party goods retailer in north america. They have 880 stores. They make Something Like 70 of the products in their stores they are also a big distributor of party goods to independent stores and to mass merchants. Either way youre likely buying your party goods from them. As bob just mentioned epsy the online marketplace for handmade goods is scheduled to start trading tomorrow after pricing its ipo tonight at the high end of the range but this company is different. Etsy is a certificated socially responsible corporation. Will investors embrace a firm that cares more than just the bottom line . Reporter etsy isnt another e commerce website. The 10yearold brooklyn based company says it wants to reimagine commerce. Its marketplace gives 1. 4 million sellers a platformer and tools to connect with nearly 20 million buyers selling products like a tuxedo capped scarf, a handmade felt box and a cinderella dress. The Company Charges 20 cents to sell the item for four months. It charges for prominent placement and shipping labels. These guys are basically focused on a niche that is growing very nicely. It should be a little bit expandible. The reason their valuation is not quite as high is because it is a smaller company. But i like the potential. Reporter etsy is the biggest ever ipo of a B Corporation a certification for companies that meet certain social and Environmental Standards like leader is citi if i occasion for green buildings. They want to change the way the Global Economy works by empowering entrepreneurs. The company compost food waste at local community farms, offer employees used bikes and maintenance and uses reclaimed office furniture. And its expanding its Community Oriented approach to its Public Offering setting aside of 5 preipo shares for its vendors and another 10 to other small investors. I have no problem with a company that has sort of a social mission as long as while they are being social they are generating cash flow which this company is. Reporter can investors think being a Good Business is good for business. Last year etsy grew its revenue 56 to 196 million but its net loss wideened to more than 15 million from a loss of 800,000 the prior year as the Company Invested in marketing. Why farmers are quickly becoming the symbol of californias water crisis. The battle against the drought rages on when we come back. A fresh read on the labor market with initial jobless claims. Well find out tomorrow on the state of housing when Housing Starts are released and more earnings citigroup, American Express and more. Thats what on the jends for thursday. The battle line in california are back drawn. The historic water restrictions imposed by the states governor earlier this month are pitting farmers against just about everybody else. And the fight is heating up. Jane wells has more from huron, california. Reporter california has the most people and it has the biggest farm economy. Now the drought has pitted city versus country. Its getting nutty. Your numbers are a little off. No they are not. They are. Youre not going to pull that. Nope. Reporter thats a local talk radio host in los angeles arguing on air with a nut ranch manager. Governor jerry brown ordered residents and businesses to cutback 25 without demanding the same cuts from farmers even though farms use at least four times as much water. They are growing almonds which takes about 10 of the water supply in a desert climate. Almonds are in such demand not justin u. S. But around the world. Reporter mark grows almonds and 6 billion almond industry has been particularly targeted with figures like one gallon of water needed for every nut. He and other farmers have been cutting back on water for years. Were getting zero surface water allocation. Reporter part of the problem is californias regulations about water and water rights which in some cases more back a century. Water is so tight farmers are turning against other farmers as the ap reports some water has gone missing. And for all the water that goes to farms, even more goes to the environment. I dont hear criticism of the water thats being released to bring back fish which is a good goal but is it being effective. Reporter its going be a long hot dry summer in california as the age old battle for water gushes anew. We can do without the almonds. I cant do without a glass of water. We win they lose. Thats a big fight. Thats nightly Business Report for tonight. Opposite susie gharib. Thanks for watching. Im tyler mathisen. Have a great evening. Well see you back here tomorrow. [chanting in spanish] many of us are trying to find ways to build a more Sustainable World for future generations. Were concerned that our planets wellbeing isnt as secure as it once seemed. But on every continent there are new environmentalists who are committed to change. Whether its an individual a small group, or a Grassroots Organization theyve made personal sacrifices that most of us couldnt even imagine. Woman this whole area was targeted by the gas drillers before people really knew what fracking was all about, and it was sold as a patriotic thing to do