The facebook founder is ready to take your phone to the next level. The key announcement at the Facebook Developers conference. I want to get to the big three, the stocks we are watching as we head into the close. Get earnings. To the two big earnings movers today have to do with Tech Companies who reported after the close yesterday. Twitter big in the news, and at the lowest level since its first day of trading. This all has to do with subscriber both. Growth. Their concerns about flowing slowing growth for twitter. Ebay, initially it looks good, but the companys Sales Forecast is a little bit short of estimates. Ebay took a 3 billion charge related to repatriation of foreign profits. Issue moreen a big broadly for companies, and it was a bit of a surprise that ebay brought this money back. Big deal, this time in the utilities industry. The nations Largest Nuclear power provider is making an acquisition. Pepcos 20 higher than close yesterday. This will make a big midatlantic power company. Time for the big story. If you thought the fed was worried about economic weakness, you were wrong. The central bank said our economy is gaining momentum. Janet yellen thinks it is ok to ease off the easing, cutting back the Bond Buying Program by 10 billion. The weather is getting better, apparently, but data is still weak. Cio at pimco is joining us. And right here on set with me, mike mckee. A big miss. Did the economists get it flat out wrong . Is janet yellen right . How do you interpret it . This was not a really big miss. The data are a collection of actual data the government has and projections. The projections could easily be off, and the government is only guessing at what the trade in inventory figures are for the last month of the quarter. This will be revised three or four times. Maybe it will look better eventually. It probably will. Things that were bad in this report are things we have indications are changing. A lead of stories about businesses starting to ramp up their spending into the second quarter. Inventory building, it was big in the Fourth Quarter and small in the First Quarter. You have possibility of a rebound there. There are a lot of things that suggest maybe the fed is right to watch this. We got better than expected adp. Adp was rightme is, i dont know when. Jeff rosenberg, we are up we are up 35 points there, s p up another quarter of a percentage point. If investors were really worried about this number, they would have eased off. Not the case today. Our investors seeing something that the gdp reports does not capture . Investors are looking past the numbers and realizing this willfed under yellen that be pretty accommodative. What gives her support to be very accommodative and holding off in raising rates is the low inflation. The core pce came in at one percent yearoveryear, the employment cost index is less than two percent. There is no Wage Inflation. With no Wage Inflation, that allows the fed to be very patient. And shes inflation, cutting by 10 billion a month. Is she being overaggressive here . Should we be keeping up, in light of the fact that we get nothing when it comes to inflation, mark . I think theres two decisions here. One is the overall size of the balance sheet. In that case, the consensus there is that the costbenefit is now towards the economy healing. Be do not need the fed to buying assets. The tapering is based baked into the cake. The second question is what bill gross alluded to in his most recent investment outlook, which is what should be longterm policy rate be. We think it should be zero percent real or two percent nominal. We see a lower policy rate Going Forward than the market. Its a function of secular headwinds and the slow inflation we see. We have a fed that says it will keep rates low. They will continue on this taper program. You cited adata number of more recent reports data that really does not support strength in the economy. Do you anticipate things will look different three months from now . We are going to see a significant rebound in the second quarter, and then it will settle out to a higher level of growth than we had seen going into funny 14. Here is Something Interesting about the fed. Isody noticed that the fed tapering, at least no one has told the bond markets. The 10year note yield is lower than it was before the fed started tapering. The fed tapering had no effect on the cost of money at this point. Adding more to it will not help. To what do you attribute that . Our investors that worried about the Global Situation right now . Right rate thes Global Economy is slowing. The u. S. Economy is healing, but its not taking off. We are looking at an economy that will grow maybe at 2. 5 real. In a world where the fed maintains short rates low for an extended period, it only gets to a two percent real or two percent nominal. I think that is really what the market is realizing and if that is the case, low Interest Rates will also support the healing process in the equity market. Low Interest Rates as far as the eye can see. And a market that continues to move higher. And equity market that is up so far this year, was up a time last year. Not a lot of Economic Data to support it. I guess im only asking the question, at what point might we see the market start to catch up with economic reality . It looks like economic reality could change. The market is what is more likely at this point. We do not know where the markets are going to go. They have plateaued and paused for a while. They have a lot of strategists wondering if this will be a correction we go into. Theres no reason to think that earning power of corporations will diminish over the years. We have the report coming out on friday. Is that the next thing we will be watching out for . Ism tomorrow is a pretty good predictor of where the economy is going. We will look at the jobs subcomponent of it. The markets tend to love the payroll report on friday, and it is forecast to be above 200,000, which would give people a reason to believe that things are getting better. Mark was just pointing out that we have not seen any Wage Inflation right now. I made a wisecrack about it earlier adp coming out better than expected, is that a good sign . Jobs reporthat the will be above 200,000 . We cannot say certainly. Last sixve of the months has undercounted what the department of labor comes up with. If you take that, youre looking based one of 255,000 the bloomberg Consensus Forecast of 215,000 jobs created. You are still talking about fairly healthy job growth. At this point, adp is a contributor to the feeling that it will be a decent report. Intou look pretty deeply housing. What does all of this mean for the Housing Market . Pace of gains will slow. We are still bullish but less bullish. Theory rightbest now is building materials. Prices, highing single digits, and we think they will see doubledigit volume growth because of the remodel cycle. The time is to move out of Home Builders towards rolling materials. Building materials. We are going to leave it there. Thank you very much. Coming up, Mark Zuckerberg takes center stage. We will find out what he said today. It looks like harsher sanctions are not doing the trick. We will have more on the violence in todays global outlook. Provide all the tools you need to bridge these different worlds. We all want identity and sharing across platforms and push notifications across landforms. The Company Announced at its f8 Developers Conference that it will offer developers improved tools. A more streamlined experience for people to log into apps and an option to sign in anonymously. With more about how these new features will fuel facebooks mobile strategy, our very own Jon Erlichman. Far. Reaction thus an interesting crowd. There are a lot of developers and tech ceos here. Power a lot of the stuff that facebook is doing. The reason that Mark Zuckerberg and facebook need to cater to developers is because to succeed in the world of mobile phones and tablets, it needs them. Facebook on its own is just an app on your phone or tablet. If they are the tool you use to are involved they in the building of apps, and they can sell the developers on the idea of, we are going to help market your app, plus we can help you make more that mayng dough increase the appeal of facebook, and maybe it helps to keep facebook following along with you everywhere you go when you are on your phone. The login is part of that. To keep developers really interested . Yes. It is one of the biggest announcements they have made. This takes limited inventory that advertisers can go off on facebook and opens it up to the entire mobile web. They have a 30 billion market their. Theyre going to take about a third of that. 10 billion of incremental volume for facebook. Explain how it works. Im an advertiser and i come to facebook. They can say, i love to advertise on facebook, but can you get me on other apps . A news app, gaming app. You can do that today already. Facebook brings all the data and information they know about you. It will be one of the two or three players in this space. Example ofanother big data, and the power of big data. Facebook really trying to capitalize on it. Couple ofr this, a years ago, facebook had no advertising tied to mobile. And now it is the dominant source of advertising revenue for them. That was them going public and saying, here is what we can do. We can use targeted information. Robert mentioned ad inventory. Facebook does not want to get you angry with too many ads in your feed. Targeted only so many ads they will put in front of you. They have reason why to go to the developers. They are out of ad space. If they want to keep growing, they have to lean on these other players who can collectively put in good, targeted ads. Their hope is that everyone makes more money. This is a 30 billion opportunity . Yes. There is 3 billiono on targeting. When they started the mobile app installs, it was a new ad unit and took off right away. This could take off right away. What do you think facebook is doing right here that twitter has not managed to do . They have made the reach to the global masses. The euphemism is, is your mom o n facebook . Shes probably on facebook. My mom is on facebook before i was on facebook. One of the scary things about it,book, if my mom is on chances are the kids are looking for Something Else entirely. Thats true. Facebook. Ot leaving they are adding to their social portfolio. They will not leave facebook. This is an opportunity for facebook to capture those younger users. We have seen this through the acquisition of whatsapp, trying to expand and augment their user base. Absolutely. They have been very bold in doing those kinds of things. They have not talked a lot about today,p and instagram maybe they can allow these developers to think of themselves as a in a position to create the next big app. I think it is a big issue. This idea of having a more anonymous login. Facebook has this advantage that long ago they said, we will make it easier for you to grab a new app using your facebook login. Facebook said today, we are willing to leave some of that on the table and take some of the information of what is being shared out of the mix so we can continue our reach. Thank you. Coming, ukraine clashes reignite. Prorussian militants seize more government buildings. Will have that story in todays global outlook. Proration gunmen seized another city in eastern ukraine. The region are helpless at reining in the militants. With more on how the west will respond phil, this is a tense city that militants have made a move on. It does not seem as though the sanctions we are putting on pressure having much effect. Not much of an affected all. Thats the main concern amongst Administration Officials and eu officials. The hope was that the sanctions would cause russia to start moving backwards. Prorussian separatists causing trouble in another city on the eastern border. You mentioned the interim president talk about how local Security Forces are largely helpless. He also noted the Ukrainian Army is on full alert and awaiting the possibility of invasion. Were going the opposite way of deescalation. Unbelievable. So what is the administration doing now . If youre sanctions are not working, what card can you play . A question they hoped they would not have to work on this soon after their latest round of sanctions were announced. We just returned from the asia trip last night. They expected these sanctions to have more bite. There are broader sanctions they are working on. Questionuestion big is not how this impacts the russian government, but how it impacts u. S. Companies. Take a listen to what jay carney had to say. We expect the numbers to be significant in this period towards the end of open we predicted all along there would be a substantial number of people who when faced with the deadline they would enroll. Jay was not talking about what we are talking about there the underlying point for the administration, they understand if they move to expand the sanctions, the next round of sanctions could hit entire sectors. Administration officials are talking to these companies. They do not want to have to face this. It is like the bully on the playground. You give him an inch and he takes a mile. We seem to be getting more and more boxed into this corner. Coming up next, we are going to go live to the conference in l. A. Now, jenny allen is fighting for diversity. She is standing by at a conference with stephanie role. The issue is not inequality but education equality. Youre putting out a sterner young people and their are not just there to fill the needs of the country. How do you respond . Class in some ways, it is unique. It is a huge system, the nations is largest Public Research facility, a very open door to those who are academically qualified to get in. What i mean is half of the students pay no tuition, another quarter are subsidized. We have a very diverse student body and are working to make it increasingly diverse and a lot of respect. We produce great graduates, scientist, researchers and the like. We have to fight for that everyday. They get jobs. Is it worth it . Absolutely. But we have is a lack of recognition of the connection and the ultimate ability of the economy to thrive. How do you manage if half of your students are not pay tuition, how do you keep the train running on the track fiasco tracks . Tuition dollars go] is into student may. The students who are paying the to makeunt are helping it affordable for those who do so. Is that a sustainable longterm . Is that a model other universities should have . It has lasted for quite a while and is one of the reasons why the university has continued to have 42 of its students first generation, 42 tell grant eligible, which has very low income. So many students who have come from households where english is secondlanguage. That kind of diversity is the arc of history for the country. Formodel has been sustained decades. I want to talk about guns and gun troll for a moment. Georgia, the law will allow guns in schools, churches, and bars. As a woman who truly understands government, security, and education, what do you think of that . Doesnt keep you up at night . What gives me a analysis out educate the next generation. I took this job for that reason. To move off of issues of safety and security, which occupy me fulltime for so long, and really think about, what is really about six dirty for our country. What do we really need . What we need is a welleducated ready toyoung people go out and use their brain and i will tell you, when i see you and world bank now beginning to rank china above United States as a Global Economy, to me, that is a call, what are we missing yet so we are missing out on education. Do you think it is just education . You feel safe and are not concerned about domestic terrorism and Cyber Security . It has got many people worry that our fundamental safety is not ok here in this country. And that will come before education. A falsere creating dichotomy. Yes, we need absolute safety is dirty and the country. Counterterrorism, Cyber Security, and all the things you mentioned. So much work is being done by so toy people around the clock ensure the safety of the country. We cannot stop there because then we are just playing defense and you have got to go on offense the way you gone century in this economy, etc. , is focusing on the education of the next generation and the research, the basic research that needs to be done. As it relates to the california drought, you recently said the system could use its Research Capabilities to try to of the bads get out situation. What is the game plan . A big drought summit at davis just last week. It brought together a lot of leaders, at least six of our campuses are doing major work on drought and drought related developmentexample, of drought resistant crops, different ways of managing water , different types of engineering systems, sensor systems, and the like. All kinds of work, starting with the basic research in our labs with our graduates and undergraduates, and moving out to the former on the ground. When you think about all of these students that are under the onedership, what is thing you are most worried about for them . They are our future. Given the diverse background, you of all the things youve seen. When you look to the next generation, what worries you the most . I hope the next generation does not become complacent. I hope they are willing to take up the call and realize the influence we have in the country and the obligation to help the next generation and to pass it on. You will inspire them. You will inspire me. Thank you so much. I will send it back to you. Great stuff. Thank you