The flames. More than two dozen people were arrested. This started after the funeral of freddy gray, a black man who died in police custody. A this sister called for calm. I dont like it at all. Betty the orioles postponed their game. Schools are closed and a citywide curfew starts at 10 00 tonight. We will be watching the situation. The death toll in the Nepal Earthquake is over 4400 people. The Prime Minister fears that number could double. Rescuers dont think they will find survivors in the rubble. People are living in tents, hearing aftershock. Authorities are rushing aid to the hardest hit areas. The finance minister says it will cost 10 billion to rebuild. Apple powered a spectacular quarterly result. They sold more phones in china than in the u. S. That is a first for the company. Iphones sales were up 40 . Look at the oneyear chart on apple area invested in a share of all this. The Quarterly Dividend is being raised by 11 . Everybody is happy with apple area analysts are surprised by bps report. They reported earnings double what was expected. Earnings made up for the low price of crude. On saturday night, when two boxers climb into the ring it you will hear cash registers ring. Sales could reach 300 million. That is double what they would have made six years ago when the fight was first proposed. Hbo says it will be a huge Television Event or it i think we can certainly project over 2. 5 million, something that transcends sport. People who want to see an event this is decidedly an event where it betty tickets range above 140000 apiece online. Those are your top headlines. Lets turn to another big company story. Ford is out with their first order results, low estimates. They continue to struggle a little bit with changeover that we have been talking about. This aluminum body f1 50 pickup truck. This is the bestselling truck. Jamie butters joins us with more. They are having some issues bringing a second factory up to speed. This is what we are seeing it . Guest this is according to plan. It is a longterm rollout to get both of those factories retooled to make aluminum bodied f1 50 one of the topselling vehicles of all time. Mark wheels said it would not be until midyear that they get up to full production. It looks like they might be running ahead of schedule in kansas city. They are raising their outlook for north american profitability. Aside from lots cost they will be a 10 Profit Margins in north america, which is pretty spectacular. It 5 is can healthy or not of maker. They are doing great in north america. They need the rest of those trucks area. Betty they need it to cousin demand. What about the stronger dollar . Guest that is a big thing for all of those north american producers. Everyone knows whats been happening with the dollar relative to other currencies. Just like with ford, it was a little the extreme than anticipated. Whats interesting is we see some vulnerability from the other manufacturers on the car side. The japanese automakers and koreans have very strong product and they can put on more technology and is without adding to cost, which is a good discount. That is tougher for the cars made in dollars to compete with. As raising the outlook for the year in north america which shows they have a lot of confident that they are able to maintain pricing and a lot of trucks and suvs where they dont have as much pressure from the japanese and korean automakers. Betty north america is the biggest area of strength for ford. What about south america, europe where other automakers are having trouble . Guest fortis doing better in china, which is a very orton market. South america and europe are the real challenges. Ford is making europe harder on it self playing the long game. They are Pacing Market share. Gm is pulling up in russia. We are just selling cadillacs and some highprofile chevys ford is starting to make a fourdoor fiesta. They are trying to the in position for when russia comes back. They see that as being a big market in the long run. Betty thank you so much. Always good to see you. Apple does it again. Higher prices and more market share, there is no stopping apple. You can see it is a percent. Scarlet who joins us at the breaking news desk. It feels like apple can do no wrong. Scarlet even on the strength of earnings, its not going to change the tenor of the stock market at the open. U. S. Futures are indicating a decline or it. Will be limiting the dow to drop. The fifth heaviest number of the dow industrial. Lets look at the highlights from the second quarter. Revenue increased 27 overall an margins are back about 40 for the First Time Since mid2012. That is due to more expenses with the iphone 6 and the iphones ex plus. They did not move as many ipads or max. As is the with straight quarterly drop on ipads. Betty its the one area that is of concern for anyone who has a buy rating on apple or anybody who is invest in an apple. What about overseas . For the first time we see apple sold more iphones in china than anywhere else. Scarlet china is going to be apples big growth market. That is why they optioned the bigger screens on the iphone 6. We have seen analysts reducing the asked but and lowering the bar or results come out. Apple is notorious for giving out these low forecast. Apple set the bar low and under promises and then that is the base case. We are looking at a record heart for apple share price when trading does begin. Betty you can call me apple. Thank you. I knew you would put in a popculture reference somewhere. Thank you so much, scarlet who. We will have more on apple and just moments. Now back to the news stories. The National Guard they are keeping the peace as we are in the Early Morning in a baltimore. Violence arrested last night. Peter cook is outside the white house. I know you are on the story of the trade talks between the president and japan. He is going to be visiting with the president today. Youve got to wonder that the president is keeping his eye on baltimore and at the white house may make a Statement Today on the situation. Peter the president is keep an eye on it. This is right down the road from the white house. You can ignore whats happening in baltimore. Its all of the local news. The president has spoken directly with the baltimore mayor. He has gotten updates from the attorney general her first day on the job and she is dealing with a situation in baltimore. Valerie jarrett his Senior Adviser has been very involved in communicating with the governor of maryland and offering federal help to the extent the government of the state needs it. They are monitoring it. I would not be surprising did not come up during his News Conference today with shinzo abe. I would not be surprised to hear him talk to reckless about with happening in baltimore. It is a continuation of a we have seen in other American Cities is year. Betty its reminiscent of all we saw in st. Louis. You mention this meeting with shinzo abe. They want to get through a trade breakthrough. Are we likely going to get some sort of richter us to mark . Peter they wanted to announce that the two most important economies in this 12 nation deal , they can announce they reached an agreement during its not going to happen. They have made substantial progress. They are not there yet. There are still some sticking points on the u. S. japanese component. They will highlight how close they are. It will be a positive spin on where these talks stand. They still have things to work out between these two countries. Betty but strengthening the military ties . Peter thats going to be another discussion. The secretary of state and asked carter formalized an update to the defense treaty between the United States and japan. Its the first time we have seen that in 17 years. That means more cooperation and a bigger role for the Japanese Military in things like mrs. Missile defense. These are changes that are a big deal. Youve got reaffirming the commitment to the defense treaty. There is a big component to this is the military component. Betty thank you so much, peter cook is on top of the story area the News Conference will be held at noon today. We have live coverage of that for you right here on bloomberg television. Well be back in two minutes on in the loop. Betty the Supreme Court is hearing arguments in a case that may legalize gay marriage. The case involves michigan, kentucky, ohio, and tennessee. The closure of four colleges might cost taxpayers money. Canceled Student Loans could carry a price tag of 200 million. When a college closes, certain circumstances allow enrolled students to have federal loans discharged. We will have more on this important story later in the hour. Those are your top headlines. Bigger is turning out to be better for apple. The bar was high and the tech giant still beat. There were 61 million iphones sold. The cherry on top, nearly 2 million apple watches were ordered. Joining us is dan ives. I read your note this morning. You called this a picasso like order for apple. Dan you slept well last night. I think 57 million was the goal. China is the jet fuel. That was really huge to the next quarter. And Capital Allocation through dividend and buyback, they came in it 200 billion. Betty what do you expect . They have 190 billion in cash or in dan they could buy a country if they wanted to. Investors are starting to see more in what they want with acquisitions and buybacks. This is one where he take us up step back, this is one where when you start to look at china the watch, apple pay, they are still in the third inning of this growth plan. Betty where can apple get that too . Dan we believe the two years from now, china will be 35 rate betty 40 could come from china . Dan china is front and center. That is the key focus. When you look at the bigger ipads and watches and bigger screens which resonate in the chinese market, that has been underestimated. I think this is one. Betty the street saw that as a market that was hard to penetrate. You had established players and it wasnt until the partnership with china mobile and others that we started to see this wake up. Dan the larger screens on iphone and significant. China was being overhyped. Last night, they really had that bear argument. This is the start of things to come. I think they are going to be more aggressive on m a. 2 million was the presale for the apple watch. Thats going to be a whole other. Betty thats a whole other opportunity. If it does well, thats another halo around apple. The one vulnerability is the ipad right . That was down 23 . Dan they are going to announce a larger ipad with a larger screen. There will be in ipad refresh cycle. There is a natural attrition ahead of the next ipad product cycle that we see in the next few months. The good thing is when tim cook is flying the plane it you feel good getting on that plane. These of the product cycles they are looking at and thats probably the next sort of cycle that we see. Betty good to see you. Thank you so much. 185 is your price tag. Dan we could see a two in front of that. Betty how much would you pay to have lunch with the ceo of apple. It comes as a guest ticket to an apple keynote of it. Bids of already reached 200,000. There are still eight days to get in on the action. That can buy you a lot of iphones. Coming up, the nfls concussion problems, what Roger Goodell says about taking better care of their players. Betty you are watching in the loop. Good morning. Im betty liu. Crude prices are trading in the highest, but they are in a slump. Energy suppliers are cutting spending. They are trying to figure out how much this will affect supplies. They are mispricing crude futures for later this decade. This could mean 100 a barrel by 2019. Joining us now on oil futures is johnmeister john hoffmeister. Almost every day we point to that story. Every day you hear about somebody reading the tea leaves in some sort of action and what that means for Oil Prices Going forward. Today the story is hey, we have had so many cuts in spending that maybe we are underestimating with that spending is going to prices Going Forward. Where the land of this . John i think were underestimating prices Going Forward. We will probably see another month or two of bouncing around. We have cut back so aggressively in the u. S. In particular and in canada, keep in mind that if we are going to see increased amand , some of the Financial Institutions will be reluctant to lend a lot of money to companies that would like to jump back into production who have a history of negative cash flow which is compounded the problem right now. I dont see a snapback in production coming anytime soon. Whether its from the majors with their cutbacks in Capital Spending or from the independents with their increased cutback in Capital Spending. I think we will find ourselves short during 2016, which will see higher prices if you are forecasting. Betty i know you have never been afraid of putting numbers here. Are we going back to 100 oil . Betty by later this year we will be pushing up to 80. We will be pushing very closely to 100 a barrel. Maybe down at the beginning of the year but during the course of the year. Its an election year. People asked the president ial candidates what are you going to do about the high price of oil . We will have been passed this low price. Betty the thing about the spending cuts, 126 billion have been cut. Does that sound about right . Has it been too much . John it cant be too much. The revenue has been cut in half. People who were negative cash, they dont have any money to spend. They have no choice but to cut back almost completely. You have firms that are down 50 or more in their rig count. That is an adjustment. They are just out of money. The Financial Institutions are not going to give them more under these lowpriced conditions. Betty one of the things that you mentioned overseas is there is a longer time the price is low, the more it will punish russia and countries like iran. Tell me how it helps saudi arabia. John saudi arabia is using their Financial Wellbeing to take on some statesmanship. I think this is a diplomatic maneuver. They are trying to keep prices low. By committing to sustained production, they are harming the people they perceive as harming their future longterm interest in a political sense. The u. S. Taking what they perceive as little or no leadership in the region, which is in major change from the past, they have to do with they have to do. They are making it more difficult for iran and russia who are seen as partners in the middle east. The saudis are really trying to influence an outcome that is two or three years off in the distance. Betty theyre willing to use some of their Spare Capacity to do this. John they will absorb whatever losses they may experience by not having the highpriced to reimburse their social cost betty its great to see you. Thank you so much. Heres a look at the other top stories this morning. The streets of baltimore are quiet. National guard is patrolling neighborhoods. This is a live shot of the streets of baltimore. The governor has declared a state of emergency in the city. The troops are called in to restore order after a day of violence. Writers torched cars and buildings. At least 15 officers were hurt in two dozen people were arrested. The trouble started after the funeral of freddy great, the black man who died under circumstances in police custody. Too many people have spent generations building up of this city. For it to be destroyed by thugs. Betty the orioles postponed their game when fighting got close to the ballpark. A citywide curfew starts at 10 00 tonight. The nepal Prime Minister fears the death toll could reach 10,000. 4400 people are known dead. Rescuers still have not reached remote villages. Officials dont think more survivors will be found in the wreckage. Authorities are rushing aid to the hardest hit areas. The finance minister says rebuilding the country will cost more than 10 billion. President obama is sending a message to opponents of his asian trade deal. He tells the wall street journal that the only winner will be china. That is the biggest market in the world. Those countries are already selling to us. I keep pointing out that there are a lot of Japanese Cars in the United States and almost no u. S. Cars in tokyo. If we dont write the rules china will write the rules and we will be shut up. American businesses and agriculture, that will mean the loss of u. S. Jobs. Betty the president s plan has some critics in his own party. The nfl says it wants to take care of its active and retired players. They are introducing a medical timeout. The commissioner talked with charlie rose about the deal with the players to settle concussion lawsuits. If they may have suffered injuries, we have programs that we hope will be responsive to getting in the care they need. A lot of times you cant really determine causation. That is one of the things that judge brodie said her decision. The causation wasnt clear. Betty you can see the entire interview with charlie rose internally charlie goodell. Carly fiorini is making political waves even though shes not in the president ial race yet. She attacked Hillary Clinton saying i come from world of business where results count. Speeches and titles are not a compost miss. She said that she would be different from any politician because she is outside the beltway and she defended her tenure as the hewlettpackard ceo. She said, i came the boom and i have been transparent with my troubles with the board and that i got fired. We went from a 28 to the 11th most profitable company. Those are fighting words as she is about to jump into the race. Those are your top headlines. Joshua friedman spoke to the milken conference. His interview is next. We will talk to bob diamond. We have much more ahead on in the loop. Betty we are less than an hour from the s