Empire state building that you have never seen before, trust me. First, we are kicking it off with what everyone is talking about. Two big headlines in tech. We will start with the worlds biggest company. Apple reporting a huge quarter, its best ever. Second quarter revenue was more than 45 billion, up by one percent, profit up seven percent, and 43. 7 million iphones were sold in the quarter, a new record. The company boosted a Share Buyback program. I do not know where to begin. Investors and analysts have been griping about apples growing business. Carl icahn would not shut up about the Company Giving buyback to investors. Here it is delivering on both fronts. There was a lot in the report tonight. There is a lot on allocation side about dividends we were not expecting. The phone number was most impressive. That is the core of their business. They use that as the tip of the spear to get their whole ecosystem out. That number was substantially better than what the street was thinking. The growth rate of the emerging markets, that is what stood out. Lastly, the ipad number was a disappointment. Exactly. It cannot all be sunshine and roses. The ipod sales dropped 50 , the steepest on record. They accounted for 19 of sales. It has been a challenge. Apple has shown it can sell iphones and china and other markets. It is making boatloads of cash. There is one more piece of the apple pie. We have not seen new product categories. We have been waiting for new innovations that have not come from apple. We continue that from what we hear from people hiring away employees. The post steve jobs apple has plenty of work ahead. Right now is go time. Is a question of what the comedy can do between the month of the month of june and november. What do we see in the fall with the iphone six. What is the wearable we all believe is coming at go coming . It is largely under owned across the investor base. Investors are buying shares, rising the most in two ears. Apple is not the only tech stock making headlines. Facebook reported firstquarter profit and revenue that blue plastic blew past analyst estimates. Facebook is blowing past the estimates in the latest quarter. It is curious. On the Conference Call yesterday, executives said the spending will increase for the rest of the year and the initiatives like the photo sharing application instagram and video advertising, not necessarily going to contribute to revenue. Remember facebook is huge. Here is a big number that shocked me. Facebook has 1. 3 billion monthly active users. We kind of forget how massive facebook is. There are a lot of large numbers. Even as it leaves mobile concerns in the dust, it cannot keep growing at this rate. At this rate, maybe not, but they have other tools at their disposal. Instagram has 200 million active users. It is often said facebook is losing a little bit of its cachet among american teenagers, but they are going to instagram instead, which it also owns. But instagram is taking over for twitter in many respects. Facebook is adding another tool to its jampacked toolbox. It has bought a mobile fitness app moves that lets people gather data from smartphones to determine whether users are walking, running, or doing other physical activities. Facebook has not said how much it actually paid for moves. Gm is on the move as well, even with all the recalls. We will hear from the cfo coming up next in motors. Later on property, the Empire State Building as you have never seen it before. The owner will give us a private tour. Volcanoes are getting active. Three in peru have been spewing lava ash gas. Residents have been evacuated. This is lunch money on Bloomberg Television. We are also streaming everywhere. I am adam johnson. In today passes investor, we have got one of the worlds is greatest, warren buffett. Every year, the chairman auction offs a lunch for the foundation. We caught up to him. The first topic, cocacola. Berkshire hathaway owns 9. 1 . Shareholders improve a controversial executive compensation program. It pays coke manages shares of the company. Buffett abstain from voting, even though he is against it. I voted enthusiastically for the directors and i am certainly enthusiastic. Being the ceo, i do not think you can have a better one. I thought the plan was excessive in that it talked about 500 million shares and using them up over for four years. My view is that it was excessive. I could never vote against cocacola. I could not vote for the plan either. It is just the way i feel about the people there. One of his disciples is david winter, also against the plan. Winters wanted buffett to be more vocal in fighting it and heres why he was not. I was not interested in taking up that campaign. I do not disagree with him and doing it. Youve been a shareholder a long time, he, like me, feels it is an excessive plan. I would not have waged a campaign against him. I was not going to work on his behalf to age one. He said he thought there was a conflict because you have criticized other companies that have rewarded employees with stock options. You are not vocal about it here in cocacola. I have not named companies. I have written about compensation generally comment sensibly, over 30 or so years. I never said i was against options, absolutely, but here, i just thought, and i voted for cocacola plants in the past, but i thought it was excessive here. This brings us to activist investing. A lot of it is happening now. Good or bad . I do not see anything wrong with speaking out about a companys plan. I think he is a longterm shareholder of cocacola and he has a big addition in it and he did not like the plan and decided to go public with that fact. It is perfectly proper to do it. I would not do it myself, but i do not see anything wrong with doing that. Next, concerns of a tech double. Investors like David Einhorn say the tech will pop and 1 buffett says he will not go to silicon valley. It is not remotely like the mobile that existed 15 years ago or whatever it was. We are not seeing total craziness or anything of the sort, but we are certainly seeing some companies go public at high valuations and private transactions. But i do not know those companies well. It is not just something you can go out with any piece of junk and call it. Com and sell it at a huge price. We are not there. But i do not find myself tempted to buy anything coming out. And then there is housing. Mr. Buffett has been optimistic about housing and still is and thinks government should play a role. In the 30 year, fixedrate mortgages is good for the American Public area you will need public dissipation in some way to bring the cost down. I think the American Public will do way better with some kind of guaranteed instrument in the picture. I think that will be in the picture. Whether you start an entirely new company and let freddie and fannie run often have a new company that in turn has government guarantee, perhaps with riot the dissipation, and i know theyre are talking about having the private market set the price to some degree, but have the government have be the insurer of some resort, maybe the private sector would take some percent of the risk. Do you think they have aided in the company . No, freddie and fannies stock rallying, i do not think it has got anything to do with the housing recovery. I think housing recovery was built into low level of Housing Starts following the crash in 2008 for a couple of years. Household formation eventually just demands housing. All right. It is earnings season. A roundup coming up in company. In motors, bmw taking on tesla with the new hybrid fords car. We will take it for a little test drive. Before we go to break, Ronald Mcdonald is getting a makeover for social media. It says its famous spokes clown will take an active role in social media for the first time using ronaldmcdonald. Here is the before and here is the after. Do you see much of a difference . Nor could we. This is lunch money on Bloomberg Television, also streaming live on every device imaginable. We are going global, from trucks in america to electric cars in china. First, the truck. Estimates in the latest quarter, thanks to higher prices for pickup trucks, that made up for the cost of recalling 7 million vehicles. Our resident car guy, matt miller and cfo chuck stephens. Earnings were up 5 million yearoveryear with margins just under eight percent. Growth in china, earnings were up just over nine percent yearoveryear. Continued improvement in europe. When we look at our expectations and performance in q1, really broadbased improvement across the business. One of the things we saw a miss on was revenue. It was not as high as analysts were looking for. They were looking at about 37 points, 9 billion. Why is that . Are you taking higher margins and focusing on higher margins at the cost of topline growth . There were a couple of impasse. We had 8 million of Foreign Exchange impact revenue based on some of the weakening current seas, russia and south america and other emergency emerging markets. As we indicated in january for our consolidated international operations, were in the process of transitioning key products, especially in the middle east. That impacted revenue as well. In our core markets, north america and europe, we are happy with our revenue and overall performance in the market. Question is betting big in the market with plans to invest 12 million 12 billion in three years. That will increase capacity by 65 . Gm is not the only automaker looking to grow in china. Elon musk hand delivered keys to buyers of his new model s. The billionaire founder says sales in china could top sales in the u. S. By even next year. We see pretty Strong Demand right now. Probably more demand than we could fulfill this year. Longterm, we will have hundreds of Service Centers in china. My instructions to the team in china are to try to build those as soon as possible. We are going to bill them at a rapid rate. Admittedly, it has not been in entirely warm welcome. I am really disappointed. Ok, sorry. The woman claimed to be a buyer of the 120,000 model s. She was upset with delivery delays from factories in california and is not the only one. We have delayed some of the deliveries in china, just for a few months, in order to ensure that when they get their car, they will have a great experience. Some were a bit upset about that. I met with them and they apologize. It is not as though we want them to be unhappy. Our motivation is coming very much from a place of wanting them to be happy and not unhappy. Yes. The happy. People want their cars. Tesla has competition on this front. Bmw is rolling out its hybrid and doing it in china. Stephen engle had an opportunity to take it for a spin. This is the test version of bmws hybrid i8 sports car but is not quite ready for the press. She needs a bath first. Where are the girls . Now, she is ready for my road test. The engine has not kicked in yet. Electric engine is driving. You can switch to the all caps version by moving it into sport. Look at this now. It is already, telling us we are burning gas. Then, there we go. That is the hybrid engine kicking in. It obviously has a head start in the china market compared to tesla, whether that gives germans in the bmw i8 an advantage over the mile as has yet to be seen. Lets check out the hybrid i8 from bmw. This is the electric test vehicle. Not really the Production Commercial model just yet. Look at this. Carbon fiber body, so it is fairly light. In the front is the electric engine and this is the charging station. Now, we can see fairly straightforward, just plug and play. Is something to be considered in beijing because we do not have these in highrise owings. Buildings. You will have to have a long extension cord up to your 30th floor apartment. The good thing is it is a hybrid. Electric engine in the front and a twin turbo three cylinder peppy engine in the back. A petrol engine that will get you, they say, 060 in 4. 5 seconds. It is a sports car. When you put it into his hero a mission mode, you can drive 35 kilometers or so. As soon as the battery starts to run down, the engine will automatically start to recharge it and, of course, give you a lot of additional power. It may be environmentally friendly but not too economically family. We want to show both sides of the story. Welcome to the china market. If we are indeed in a bubble here, you will likely have some competition at opposite ends of the electrified spectrum. Bloomberg, beijing. The price is right with a top speed of under 35 miles an hour. It is not quite as much fun to drive as a bmw or a tesla. We have talked gm, apple, and facebook. We have earnings as well as well as dozens for you. A wild card advice for handling success from shaquille oneal. This is lunch money. Todays moving picture where the video is the story. Under scrutiny for chemical weapons. Activists and residents are reporting the government is using chlorine gas for months. Security Council Members are calling for an investigation. Assads government denies the allegations. President obama was feted. The promise that the u. S. Would protect the East China Sea islands. A yankees pitcher has been suspended. He was thrown from wednesdays game against boston after an official spotted a substance glistening under the stadium lights. He said he had trouble gripping the ball and did not want to hit anyone. How noble. In company, we have an earnings bonanza. It is 13 of the index. They are all out of the numbers today, caterpillar, 3m, amazon, verizon, Dunkin Donuts thomas shall i go on . Lets just start with cat. Earnings beat analyst estimates. Caterpillar also boosted its fouryear forecast. A great indication of the global economy, especially in the emerging markets. The stock market does well. The cat led the dow in trading. Then there was ups. Carol massar lays out the numbers for us. What everybody is focusing on, the company laid out is forecast for the year. In january, theyre saying it should be at the low end of the forecast here there is disappointment, coming on the heels of fedex. We saw that last month. Mixed results from the company, instruct strong in terms of international. Daily volume up about eight percent. Scott davis specifically sang him a call it was due to unusually harsh weather. About half of their service days were disrupted because of what is going on with the weather. I talked to ups during the quarter. Those folks are staying at their office, definitely a big factor. Job up about 20 . The weather is not as much of a problem for southwest airlines. Posted record fourthquarter profits, topping analyst estimates. Here is the ceo gary kelly. Heres how he did it. We will do our best. Virtually flat fuel prices for the past 12 months. That bodes very well for us going forward. That has been the main challenge we have had, especially over the past 10 or 15 years, Rising Energy costs and as the transportation company, if Energy Prices are moderate, we will try real hard. You have to get more revenue out of each cap each passenger you fly. It was an alltime record low factor, 79 . One of the opportunities for us is to fill empty seats and then also, with products so that customers have the choice to purchase. We are growing our revenues without having to depend on significant fare increases. From the skies to skyscrapers, we will take you inside the Empire State Building for a tour that money cannot buy. That is coming up in property. And how to succeed like shaq. The 71 former basketball player is making more money now than he did on the court. We will tell you how. This is lunch money. We are streaming virtually everywhere. I am adam johnson. Today in property, we are in an empire state of mind. The Empire State Building grace the new york city skyline since 193131. A lot of years and a lot of money made it what it is today. The Empire State Realty trust manages the building. The art deco spires served as a beacon. Its Technology Supports a major radio stations. More than 4 Million People marvel at the view from its 80 64. If you are famous, you can brave the climb to the secret birds nest. On a clear day, you can see over 80 miles. It spans five different states. The empire is also one of the Worlds LargestOffice Buildings stop it is also worth so much money. Raised 929at owns it Million Dollars in an ipo. It is the second biggest for a u. S. Real estate trust. The Empire State Realty trust manages the building. Here is the company ceo. The empire state going has always been the icon on the new york city skyline. Back in 2006, we took over the program and the inside was not so good. We do a lot of work in the Empire State Rebuilding Program to make the outside image reflect the inside so when we brought people in, it was not just the view, which was impressive, but the entire building. It is one of the world posses most famous skyscrapers. The Empire State Building is a staple of the new york city skyline. And a building in transition. A ceo has plowed a half billion dollars into energy improvement. Loaded up the stateoftheart enhancement all to make this a hightech hub for Companies Like a clothing distributor. I said, if you will not come in at least look, i will not give you another square foot of many of my buildings. They came and looked and felt love. They are your largest tenant here . Our largest throughout the portfolio. We have cody, linkedin, it is what most people never see that is transforming this new york city landmark. Limited all the insulation as far as the energy efficiency, all the elevators, what we realized is we do not have to do all those things. Original, 1931 steam station. We are at the wind tunnel. Tell me what this is about. We need to bring fresh air into the building. It comes into the building from the third floor, works its way under the building, and supplies fresh air to a couple underground levels and the stores that have lower levels in the buildings. Above the wind