Thats a nice beat. Alix this looks pretty good. David therefore, the premarket is down. [laughter] alix maybe it is capex . Like you mention, monetize a bull daily active users beat. Bulloks like monetize a daily activele users beat. David theyve been doing a good job getting more money in the door. They still got a ways to go. 2 3 of the rate of they look like good numbers from twitter. Alix joining us now are evan brown, ubs Asset Management head of macro, and bloombergs paul sweeney. One of the big issues for twitter really focuses on ly activea bull dai users, the people that come back every single day. Thats what advertisers want. Twitter cant really compete on t versus the facebooks versus the facebooks of the world. Thats the kind of metric twitter really taps to advertisers. Ared one thing people looking at is geography. They had really favorable numbers in japan last year. It is expected they will be under the number this year in the u. S. Paul they make so much more money off of users in the u. S. Twitter has established itself as not a big, broad advertising platform that its going to reach huge tonnage of users like google or facebook, but our users are very engaged. We have a great demographic, and they come back time and time again. Lots of advertisers want that kind of platform. David it looks like the market is catching up with us. Twitter is now up over 2 . Paul i think people are trying to digest that as well. Alix we have twitter, google, amazon. To me, one of the biggest takeaways is these guys are going to keep spending money. It depends if you want to pay out for that are not. Evan thats right. Its hard to find growth in this market, especially within economy that is only soso. These companies will keep spending. There will continue to be flows into these companies until something breaks. We are keeping a close eye on some of the doj and regulatory stories happening, but those are over a very long timeframe, such that we think these companies in the meantime can still do quite well. David i thought that the Earnings Report from amazon was basically jeff saying, trust me. Bezos saying,eff trust me. Paul theres no ceo who is established more trust with the market place than jeff bezos. For more than a decade, hes said we are going to spend money to make money. We are going to make profits in the future. Dont worry about it. Thats really going to drive our topline growth, and we will turn on the profits later. Of course, the Cloud Business is really a profit driver for amazon. Came in a little light last night on the revenue, but i think everybody feels very convertible that the Cloud Business is a longterm growth story not just for amazon, but other players as well. Alix if it is going to cost that much for them to warehouse and do oneday shipping, how much is it going to cost the other guy . It is all relative, too. David and a lot of Cost Increases were in warehousing. Google . W about paul they came back with very strong Topline Revenue growth, showing that advertisers continue to really favor that platform. Their Cloud Business and other bets continue to do very well as well. David as we look at this and have gdp numbers out next hour, does the tech sector tell us anything about the rest of the economy, or is it two Different Things going on . Evan this area of tech, software and social media, is showing good resilience. The Economic Data come of the weakness we have seen has largely been in manufacturing rather than services. Given that more and more of the s p 500 market cap is services and these big Tech Companies, the resilience in the services istor and in these Companies Something that stands out, especially relative to other countries more geared toward manufacturing. Alix bloombergs paul sweeney, thank you so much for coming in early for us. Ubs asset of management will be sticking with us. Also stick with us for Bloomberg Television later today for an interview with twitters cfo at 3 30 eastern time. In the markets overall, you are looking at a mixed picture. S p futures are up by about 3 10 of 1 , no doubt helped by earnings. Eurodollar down by 1 10 of 1 . Will we break the key support level for the currencies, all about the fed coming out next week . In the bond market, yields lower by about two basis points after the crazy wild ride you saw in the german bund market and btps yesterday. Coming up on this program, Boris Johnson denied. The European Commission says no changes can be made in the latest brexit deal. More on that in todays first take. This is bloomberg. Pm johnson in the 98 days that remain to us, we must turbocharge negotiations. David its time now for the bloomberg first take. The European Unions has no to bojo. The uks new Prime Minister is denied a chance to change the brexit deal. Softbanks new vision. The Company Unveils the second vision fund, with a focus on tech. Joining us is rachel evans, head of etf coverage at bloomberg news. With us still is evan brown of ubs Asset Management. So you are british. [laughter] alix can we make the point that david said bojo . David it was written on the prompter. Boris johnson came in with all flag flying, lets start with the irish backstop, but got Jeanclaude Juncker and Michel Barnier saying no way, no how. Has been very consistent in what it says. They have consistently said no, this is the deal you get. Boris is now trying to play this game of brinkmanship and hoping that the eu, as we get closer to this deadline, will blink and be open to renegotiating a deal. So far, they are saying, no. We will stick with the deal. Oris is pushing the country more towards a hard brexit. Arguably, that is something he and his allies are very comfortable with. It gives them a lot of room to run in election. I think this is where we are all heading, a general election either in the fall or in the spring look very likely. Alix the word on the street for some individuals is that maybe you want to start taking a look at some value. Are you one of those people . Evan for us, lets wait and see what happens. If we get a no deal brexit, there are going to be a lot of cheap companies. Ultimately, a no deal brexit is not a good thing come about the u. K. Is not going to fall apart. Big fall inect a sterling, a big hit to a lot of u. K. Companies, and then lets see what we can scoop up from there. Thats the game plan at this point. David we have to wait and see on brexit. We dont have to wait and see about gdp numbers. We have them in about an hour and 20 minutes from now. The consensus is 1. 8 for the Second Quarter. Where are you . 2s, but are more mid more important will be the details. In the First Quarter come of the was really in the details. We saw durable goods yesterday quite strong. Focus less on the headline number. Focus on the internals. The internal story is quite good here. Alix which is so puzzling to me why you have seen such an enormous amount of flows into every area of the bond market at the expense of some equities. Rachel it is a really interesting dynamic care. People are looking very much at the fed. What the fed seems to be on path for his, regardless of what data says, i think everybody is trying to position. I was really taken with the shift into fixed income. Weve actually seen outflows from equities in the etf land this week. However, a lot of it seems to be coming out of the very highly traded s p 500 funds. That suggests to me maybe this is more of a function of equities hitting highs rather than fixed income being more attractive. Were definitely seeing a push into highyield and longerterm debt. Alix we had twitter earnings coming out, monetizeable active users stronger than estimated. Next week you have microsoft, apple i think we had microsoft, right . Oh, this is vision fund. Im sorry. They are raising a second vision fund, this time without saudi arabia, this time with these participants like apple and microsoft. What does that tell you about the money sloshing around the needs to find a home . Evan you said it right there. Borrowing costs are so low. Everyone is looking for some kind of growth. You have a lot of money looking for investment. Now the fed is cutting with a strong economy. You have to raise the question here, are we stoking asset bubbles . Because of this obsession about getting inflation higher, are we just encouraging more and more inefficient investment, more money chasing, fewer productive opportunities . That is a question the fed is going to have to ask itself next week. Seeing ae we bifurcated market in which the etfs go intoand things like the vision fund . Rachel to a point. Within more etfs overall investments as equity ties to cash as equity ties ized cash. T it is kind of interesting that they are coming out with this much larger fund, Something Like 108 billion. You do see a little bit of retail taking over in the etf space, but i wouldnt view it as purely a retail it is really just that institutions are using etfs in a different way. Alix do you want to buy tech . Evan at this point we are neutral on tech. There are plenty of Companies Trading at multiples that are just enormous, so it is hard to be underweight just because the money keeps flowing in. What wed rather do at this stage is tilt away from tech. Because we dont think the economy is that bad, we are going to see a rotation into other cyclicals come the financials, energy, materials, industrials. So we are neutral tech at this point. Alix bloombergs rachel evans, thank you so much. Evan brown of ubs Asset Management, you will be sticking with us. Coming up,gal oil andaluccio of vista gas will be joining us. This is bloomberg. This is bloomberg. Alix its the first oil and gas ipo of the year in the u. S. , and it could be the only one. Isentinas vista oil and gas the only company developing shale in the area that has the best chance of being a shale powerhouse after the u. S. Galuccio was responsible for the development of the region. Vista oild by miguel, and gas ceo. How was this process . You have Oil Prices Going nowhere. What was it like to market this deal . Miguel it was a challenge, but it was a good challenge, and we finished in a good line. The market today was not in favor. We have elections in argentina. Before we get to the internal politics of argentina, investors dont like u. S. Emts because they spend too much u. S. Enps because they spend too much. What was your pitch to investors to not do that . Miguel i think they still like shares in the u. S. Now they are a bit outoffavor. , permian hasings found competition. One of thee things we have is that we learn from the u. S. Lessons that of weve taken into consideration. We have concessions for 35 years. That helps a lot. Secure ato drill to space in many different places. Are related issues to that. Two advantages. We learn from the u. S. We have concessions where you weaken plan at where we can plan our development, and we have more space where we can plan our development, and we have more space. Alix in the u. S. You are drilling wells to close to each other, and they cannibalize each others pressure. What are you not doing that the u. S. Has made a mistake by doing . Isuel what we are doing , thething we are learning ,ay you plan your development they came with a lot of technology here. Everything we learned here, we are applying their. [indiscernible] i will give you an example. Technology used to store crops in argentina, we are using to store sand. Resources are looking good. Alix you mentioned the sand. That leads to the broader issue of infrastructure. When i was there, all you saw was just basic land. What is your thought process on that . Miguel we need to be careful samese we started in the place where permian started in many respects. We have the capacity to allow us to have a good start without focusing in facilities too much. One thing that we have done, looking at the future, we launched a Company Six Months serve vistagoing to and our competitors. Invest what we need ahead of time and just focus on the development. Alix lets talk about the politics, then. Investors are no doubt anxious about the elections. What does it mean for your business . Thing is think one interesting in argentina, that we have a consensus about vaca muerta. We managed to bring investment to the country. We managed to bring partners. We passed a law that gives us the legal framework. Werse, in this time have showed to investors that we in argentina can have continuity. Believe vacaat, i politicaleres concerns that will keep going the right way. The you did just export first shipment of light oil out of argentina. In november, can you still do that . Miguel yes. We have challenges and pending tasks. Two are very important ones. One that we have to learn from the u. S. Is we have to share information. We have to have a much faster learning curve. That information helps to have a more rational development. I think also we have to learn that incentivized ports basically change the whole business. I think we need to do that in argentina. Completely inot the free market for importation. Alix why is that . We need to move beyond that. We need to ensure that everybody that wants to support can support. Alix you have a tremendous amount experience amount of experience. What is your outlook for oil supply and demand, prices . How do you see it going in the back half of the year . Miguel that is a tough question. Many people get it wrong. I probably would not be the first. Are after the levels we are at for the next few years. I think demand is still strong. I believe we need to boost reserves. I believe that is going to play in the favor of oil prices. Alix so supply gap, and argentina wants to fill that supply gap. Is that they develop and goal . Goal . T the develop and is that the Development Goal . Miguel we would never get the speed and scale you have here, our count byltiply 10 for argentina, we would be in credit will story. Alix i really appreciate it. Miguel galuccio, vista oil and gas ceo. David coming up here, did trade headwinds have a cooling effect on u. S. Growth . We will find that out when gdp numbers come out. This is bloomberg. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. Alix this is bloomberg daybreak. Im alix steel. Happy friday, everybody. A bit of a rally in the s p, with twitter surprising to the upside, adding 5 million users. Amazon still off the lows of the session. Cash burn weighing on that stock. In europe, european autos, renault had a really rough quarter. Shouldnt be a surprise considering how bad nissan was, but nevertheless, that is really filtering into the market. David it really was awful. Alix really terrible. In other Asset Classes, it is a strong dollar story. The euro continuing on the downside after a dovish ecb statement. Maybe mario draghi to the back end of the news conference. Theres brexit back on the table. You have a little bit of buying in the long end. Yields down by about one basis point. A soggy auction yesterday considering how whippy the action was in europe. David lets find out what is going on outside the business world. Renita young is here with first word news. Renita president erdogan said even if the u. S. Isnt selling Patriot Missile systems to turkey, the country is still buying boeing planes. There was an order to purchase about 100 boeing planes. Union has rejected u. K. Prime minister Boris Johnsons mans for a better brexit deal. Johnson seems to be ruling out minor cosmetic changes. Hes calling for the irish backstop agreement to be scrapped. If neither side backs down, britain will be on course to drop out of the eu october 31 without an agreement. Hundreds of protesters staged a sit in at hong kongs Main International airport terminal today. Demonstrators dressed in black sat on the ground, holding up signs and chanting slogans including, free hong kong. Protests have been happening in hong kong for more than month. Demonstrators are calling for and antic reform investigation into alleged police brutality. Global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. Im renita young. This is bloomberg. David thanks so much. They didnt really disrupt traffic in the terminal, but the reason this is interesting is this is supposedly the first of three days of demonstrations. It appears they are going to have multiple days of demonstrations. We will see what happens, but by monday there may be news to report in hong kong. Alix if the last protests have been anything to go by, they may be tumultuous. David beijing hopes this is going to go away. It doesnt seem to be going away. Alix no it doesnt. David we have u. S. Gdp numbers coming out just about an hour from now, the most important day before the fed decision next week, with consistent estimates of 1. 8 percent growth in the Second Quarter, coming off of a the first in quarter. We welcome now bloombergs carl brown ofa, and evan ubs Asset Management. We have a chart that indicates what happened in the First Quarter, where you see that gdp went up, but the sales through to domestic purposes went down. Do you think that might change . Carl we saw unusual narrowing in the trade gap. That is positive for gdp, but temporary results of saber rattling in the trade war. People were patting supply chains, an