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deal. >> hope is that we will before very long have a conviction -- will come in and begin to compromise. i don't believe they have compromised in the same way u.s. and mexico have. >> this week mexico's president elect release a one-page letter from president trump in which mr. trump called for a speedy renegotiation of nafta. president trump warned there could be a much different route should the discussions drag on. in the past he has threatened to cancel nafta. the effort to reunite thousands of children separated from their parents at the u.s. mexico border is expected to fall short of today's court imposed deadline. authorities have identified more than 2500 children who may be covered by the order to be
reunited with their parents but hundreds of parents may have already been deported without their children. chinese president xi jinping urged federal leaders -- fellow leaders to protect our right. the leaders clasped hands and post for a photo on the second day of their meeting in johannesburg. the u.s. has been criticized during the summit for extra -- escalating tariffs on foreign goods. michel barnier has rejected the central part of the uk's proposal for a trade deal. proposed a model under which the u.k. would collect the eu's tariffs on goods entering the country country as part of her plan for customs checks at the border.
onnier said that is acceptable. nothe eu cannot and will mitigate the application of its customs policy and rules and excises corrections. to a nonmember. who would not be subject to the eu's government. >> the rejection of the proposal is a blow to the hopes of achieving an agreement by october. talks are expected to resume next month. atbal news 24 hours a day tictoc on twitter powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton, this is bloomberg. live from bloomberg in new
and live in toronto, welcome to bloomberg markets. here are the top stories we are following from around the world. facebook shares plunge is privacy concerns it. the stock could be poised for the largest one-day loss in value ever. trumpe truce president declares a cease-fire on more tariffs to focus on europe increasing imports of soybeans and natural gas area the canadian chamber of commerce ceo speaks out what he makes of the ongoing trade tensions and the future of nafta. let's get a quick check of the major averages. we are seeing u.s. stocks mixed today. 500 down 2/10 of 1%. gamblesumer -- procter &
and coca-cola but tech is a big drag in fact most sectors on the s&p 500 are in the green but the tech sector is falling one half percent and taking down the s&p 500 with it. the nasdaq is down 1% although industrials are getting a bit of a boost on a lower trade tension optimism coming out of the u.s. eu meeting yesterday. >> it is interesting to see where we are seeing a decline. in some cases gains. they are big moves today. massive momentum plays here. biogen is one of them. disappointing news of its trial. people are voting with their feet today. there is facebook of course, a historic drop in value.
one of the stocks and let the market higher. that will pressure this market. for more on that we are joined by sarah frier from san francisco. disappointing as we are seeing slower growth and lower margins area it wasn't a surprise with facebook. i think the market is quick to say that maybe this is because of all the scandals and criticism over the last few months but what is going on here is really something quite bigger than that. more impact on facebook's future which is that facebook the main social network has reached a saturation point around the world. there is not that much more growth left. in that name property. they will have to rely more on their other properties like instagram whatsapp and messenger which have much less mature business models and much more experimental business models.
facebook can't definitively say will work. reviewing their mode of operating based on new data privacy rules coming out of europe. is there a concern here that the model has to change? that is certainly an uncertainty. the company has to collect less data from its users and many cases give them options to delete or clear their history. how mucht know yet people will take advantage of the new privacy controls that they are giving. depending on how much people decide to, that could affect the effectiveness of their advertising overtime. it is untested. they haven't really tried this on this scale before. what facebook is trying to tell is how therediction revenue will slow over the next few quarters. they are going into uncharted territory. they tried to telegraph this a
little bit but not to the extent where people really realize this. used to facebook as more than 50% or 50% growth. >> i can't remember the last time they missed. it was back in 2015. this is pretty unusual. i wonder what role instagram played in all of this. rolestagram payers a huge because that is one place where facebook and look and say the thing that has really worked for these will work for instagram two. we know that business cold. we're instagram gets to be a little bit trickier is they have this extremely popular format called stories where people post videos of their day to disappear after 24 hours. that format, they are just starting to monetize it, it is
unclear whether that is going to be as effective in terms of return on investment for fee adds that the we have seen in facebook past have been. >> thank you, sarah. let's stay on tech. should investors put faith in amazon? analysts expect the online retailer to report positive results today after the bell. joined in seattle. will amazon be the savior for this group? >> we will find out this afternoon. the key question with amazon is the balance. you can expect a very strong topline growth and especially this quarter they are still benefiting from the whole foods acquisition. the question is how quickly are they spending it.
the trend that has stirred investors, amazon has been managing profitability becoming more profitable. it will keep $200 billion in revenue this year. they are managing to squeeze more profits out of that revenue which is what investors like. is there some new investment cycle or some new project or business line that is sucking up all that revenue introducing profits in which case there can be some investor blowback. >> earlier we saw microphone beating expectations. what are we expecting? >> expecting strong cloud growth revenue growth. the key is is it accelerating or even flat would be good. if you saw a big deterioration in revenue growth that could become turning. the expectation is strong revenue growth on amazon web services and that is so critical
for amazon because the main so lowrce business is margin the profit is so challenging there. amazon web services have a profitable and that is what fuels the rest of the operation. your point spencer, topline growth is expected to be enormously high. for 4% domestic. -- 44% domestic. they can tweak their spending by not that much and offer up a pretty nice gps boost. >> spending is always a concern. they can tweak it one way or the other. that they new device are working on that they are hiring aggressively for? they have ambitious plans in original movies and video content. is that chewing up a lot of spending? is the global expansion, where they always lose money on their international operations, is a global expansion with new
investments draining things? that is always the question. how are they turning the knobs and how much are they turning .hem to boost profitability >> thank you so much. coming up, pumping the brakes on the trade war. more on how president trump's threat to impose tariffs hit a red light ahead. this is bloomberg. ♪
this is bloomberg markets. european commission president uber has agreed to work with the president. president trump back down on his threat to slap more tariffs on european cars. thank you for your time. yesterday going back between the meeting of president trump and president younger, who won? i think nobody one or know one party one. overall not only the two sides
one but the global economy one for now. everybody is taking a cautious sigh of relief. the auto tariffs are off the table for now. for the eu.n it is important to mention that is another win for the european that u.s. for administration to be on the record stating that they are together trying to reform the wto. also together to jointly go fight for fair trade practices which is also addressing chinese unfair trade practices. there aremp side, wins with regards to soybeans and liquefied gas.
those are immediate wins as well. they are not that immediate after all. it will take time to implement both of those. either of them is entirely feasible. tariffs arenum still in place predicted we get enough specifics out of this meeting to say it could be a first step toward a bigger trade deal? -- it is a step in the right direction. a cautious step. yesterday was definitely a good change in tone. a switch to the positive. we should remain cautious. last week, the eu was declared by president trump as the united states trade foe. meeting,re the president trump also tweeted tariffs are great.
or even the greatest. say this is a step in the right direction that could be the start of larger negotiations. it remains to be seen if this is tomorrowsed by a tweet or if this would produce quick enough wins for president trump that he is remaining interested in keeping the dialogue alive. had a very strong negotiating position right now domestically. to take a cautious victory leap right now. note thatmportant to there are remaining in place very damaging tariffs on steel and aluminum. those have not been rolled back. many of us perceive this as the auto tariffs threat being removed. which caution against that?
thinkyour first point, i that this is a very important point to make because i don't think that the eu can feasibly substantive negotiation going forward with the car tariffs still in place and think at the very least and the next weeks it would have to be concrete plan and timetable in place for the u.s. to roll back these tariffs before the eu can agree to negotiate something more substantive. with regards to the car tariffs, i would caution as well because we have seen today between by the commerce department that said they are very much still continuing their probe that was requested by president trump. they are continuing to look into are what they consider a threat to national security. it will take another few weeks.
i think they said about a month for them to get to their conclusion. depending on what they conclude, this might very well have implications for president trump negotiating strategy with the eu thatoth sides agreed either side could decided at the point to quit negotiating. point, there is also a political aspect to this. will we talk about who wins here. that is the perception at home. wheres a new stage instead of appearing to bully his allies, the president will appear to win by being more friendly with them? >> it remains to be seen if he is continuing this positive narrative. that would be great. a lot of people at home in the united states do value the
relationship with the eu for economic and security reasons. it will depend on the narrative that president trump chooses with regards to the eu. if he points out for example in his meetings this week with american farmers how american farmers stand to gain from deeper economic ties with the eu, that is something that can very much be having a very positive impact going forward. >> u.s. trailer percent of spoke today about the nafta negotiations. close to finishing those negotiations. given expect a nafta deal the congress might be running out of time for a vote as well? >> i think that remains to be seen. there has been some much movement on this. one week we are close to an outcome the other week we are not. there has been some much back and forth but obviously with the
mexico,s being over in or the newly elected president-elect being in favor continuing after negotiations and also endorsing how it is there arer, i think good chances but it will be troublesome and all sides have agreed that it is quality over quantity. >> thank you so much, marie. this is bloomberg.
way things go to put too much stock in any one day's developments. at least this has been moving in the right direction in the last 24 hours. >> in terms of what candidate should be doing now, bargaining with mexico is that the right answer? >> it is very important. the president strategy up until now whether it has been an nafta or dealing with the eu has been dividing conquer. pressureapply more individually than with part of a group. nafta is a three-way agreement. makes sense to have coherence and consistency across north america area >> from the point of view of your members, this is gone on longer than someone like. we have real tariffs in place now. how are businesses responding inside canada about how they are investing in what kind of plans they can make? >> there is no question whether
form willing exist or what it will take that causes investors to hold back. the sooner that we can resolve the uncertainty the better it is for all three countries because it creates -- it sets the rules under which people can make investments. >> would you welcome an agreement in principle with details handed out later. ? anything that moves us in the direction of having a deal is a good thing. case that youe agree in principle that you work out the details and a later date. sooner obviously been we have longer -- everything locked down the better. if we can get agreement to agree before that, that is a step forward. >> in terms of any sort of points upon which canada could is there anything we
have been sticking to that we should not? way, i did feel that would not give that advice publicly. when you have negotiations, everything is on the table. have a process of give-and-take, some things are more important than others. in some cases it is not possible to make any change at all. i think we have to leave it to the negotiators to try to find a settlement where trade-offs between what we give them what we get are reasonable. >> from new york and toronto, this is bloomberg. ♪ two, down and back up.
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scarlet: we are live in bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and from around the world. unfriend it. facebook takes a historic plunge as scandals hit the company where it hurts most. and an early investor weighs in on facebook financial --'s financial future. and while facebook fumbles, two other tech giants hit a threshold of a monumental achievement, surpassing $1 trillion in market cap. are flying airlines higher, contributing to industrial sector gains. we will hear from southwest airlines ceo gary kelly. we have u.s. markets closing in two hours time, and facebook is weighing on the nasdaq. >> this is a remarkable board because it of a spoke. the dow wa