Donald trump is making overtures to the Republican Leadership as he consolidates his frontrunner status. He had a conciliatory discussion with House Speaker paul ryan. Putting trump ahead in the key races in florida and ohio. Does any headlines from bloomberg news. Bloomberg markets today, closed for lunch but heres how they were trading in the morning session. The composite down about 1 . We are leading up to that decision in shanghai. I am back in half an hour. Time now for bloomberg west. Coming up, square beats big time on revenue. The company is still losing money. Amazon goes to hollywood. We step on the set to take a closer look at the companys plans. China announcing the biggest vc cash pile in the world. How it plans to invest in that country. First, square posting sales growth despite increasing competition from paypal, apple just to name a few. Revenue rising 49 in squares First Quarter as a public company, but profitability may be the real concern. Squares net loss widened to more than 80 million. Youre looking to the ceo for a convincing argument that square cant sustain this growth and continued to make money, perhaps even branch out. Joining me now to discuss is payments veteran, a former these executive, now ceo of the mobile banking startup chime. Chris, i am going to start with you. You are very optimistic about square in general. What do you think about sales growth here combined with the lack of profitability . Chris they had a huge quarter. 50 to the corner, 60 for the full year. They are clearly firing on all cylinders on that front. They are expanding into other categories. There Square Capital division is something investors are really looking at. Have announced that they have offered loans to hundreds of thousands of merchants 70,000 merchants and about 400,000 of loans in just the first year. That is an exciting crosssale opportunity for them. Emily i heard a lot of people very optimistic about the future of Square Capital. How big do you think Square Capital can be . Paul i think it kind of has to be. The payments side of the business, as your guest well those, coming from a very competitive business of payments himself, it is becoming increasingly competitive. Then vote, paypal, square. If you watch some of the key metrics at square, like the amount of money it gets on a per transaction basis, that has been in decline since before the Company Became public. It is not just square, it is across the industry. The way you support yourself in terms of maintaining margins is you have to offer these type of back end merchant services. Emily how much does it matter that square isnt profitable and margins are growing despite the strong growth . Chris i think this is a growth company, and what is exciting about the company, in my mind, is that they design beautiful products. If you look at the Customer Satisfaction rates among their merchants, it is unheard of in payments and banking except for maybe chime. But in general, the big processors in this area are not loved. It really gives them an opportunity to expand into other areas. It bodes very well for them to do things like caviar. Emily caviar is the Delivery Services they are offering to merchants . Chris run by my friend, who is an amazing entrepreneur. I dont think that is the whole story. I think the more exciting story is the Square Capital side of the business and how that precedes overtime. Emily square has been focusing on small and medium businesses, but what happens once they start branching out to larger businesses . Does that change the story . Paul for sure. Back to where the companys revenues come from, analysts are talking about what the impact will be coming going from being focus very much on small and medium business, to focusing, or at least trying to focus more on larger business where the take rate declined. I think most people are looking at the starbucks deal, because like most large companies, they cant get the same percentage of the overall transactions to flow back to them as revenues. Emily we have been listening to jack dorsey on the earnings call. Take a look at what he said about their contact list. Mr. Dorsey we are seeing Strong Demand for our contact chip and reader. We have been shipping the readers since december. It is also for sale online and in apple stores around the country. Emily how strong is squares Product Pipeline . Paul i think it is great. It is amazing for the ecosystem. It will accelerate payments, because if you look across merchant locations, the actual places you can use your apple pay or android pay are quite limited. To add that to the 2 million plus merchants they use is a Great Development overall for consumers. Emily it was interesting early this year when we were seeing a lot of market volatility, with twitter and square specifically, we saw a rise and fall together even though they are completely different businesses, yet run by the same person. Recently, we have seen square outpaced twitter. How much do you think him being ceo of one is affecting the other and vice versa . Paul i think it is a hairball. I wish you would stop and focus on a single company, because i dont think it does either company any favors. Jack is a prodigious and talented guy and it is great he has been able to scale himself across two companies. Over time, this has to go away. It becomes collateral damage, where if there is a problem with one, it just reflected into the other companys stock. I think he will have to make that change. Whether it is this year or next, i dont see how it can continue . Emily you are ceo of a payment company, what do you think . Chris he invented square, he invented twitter. Square is a multibillion dollar market cap and twitter is just an amazing product. I would give him a little time to get both of these businesses back on track. I think it will be tough longterm, but he has a Blue Bottle Coffee between the two offices. Emily thank you so much for joining us. I will be speaking to jack dorsey right after the show today, so i will bring you this thoughts tomorrow. Staying with earnings, shares at box are surging afterhours because of some better than expected guidance from the company. Projections for the Current Quarter and fullyear both suggesting that the company will lose less money than analysts had been predicting. Box helps analysts sync files. Meantime, the eu may be gearing up for an investigation of googles android operating system, yet another obstacle in europe. Companies complaining about google have been asked to prepare a nonconfidential version of documents that can be shown to the search giant which could signal a rerun of the probe into googles shopping service. It could result in hefty fines or even force google to change business practices. Coming up, amazon announced plans to build its own Delivery Network and leased 20 planes. Emily intel is setting its sights on 3d sports broadcasting, acquiring replay technologies, specializing in 3d experiences. The companies have worked together before, specifically during the nba allstar weekend. Heres a look at how the Technology Actually works. When intel demoed its new technologies, they used Replay Technology to show exactly what it could do. Intel said that buying the israeli startup was a natural next step as it moves into the arena of socalled immersive sports. It is a bit of a mashup between what you see in the matrix films and professional sports. It allows fans to get up close and personal to the action, whether they are in the arena or watching from the comfort of the living room. They create 3d pixels of the entire surface area, enabling it to build up the scene in real time. Replay has raised more than 20 million so far. It will allow them to build on the existing business. Emily joining the ranks of fedex and ups, amazon has been taking strides to build out its Delivery Network, announcing plans to lease 20 boeing 767 aircrafts and taking the plunge into the air freight and shipping space. Here to discuss the obligations are editoratlarge cory johnson, Paul Kedrosky still with us, and Jonathan Kessler from a company that deals with trucking with just six. Corey, what do you make from this move from amazon . Cory the mechanics of the deal are very interesting. A 57year program where they are taking 20 planes. They also get the option of buying 19. 9 of this company at a fixed price as of february 9, which is nine dollars six to seven cents per share. So, amazon has a chance to acquire some of this business at a decent rice. Amazon able to buy 20 of that business at a share price far below what was agreed to just last night. The companies saying they reached the deal overnight. Amazon has shown ambition to expanding into delivery for lots of different ways since they made the decision to start paying state and local sales taxes. They change their approach to distribution, getting closer to distribution centers, major cities, but also recognizing the dollar amounts that amazon has had to put up to our shipping has been massive. A 2. 6 billion years ago to 11. 5 billion last year. They are spending vast fortunes with fedexcup ups, now they get a chance to compete. Emily i am getting like five amazon box is a day because i never go to the store anymore. The delivery industry is still fairly fractured. Can you lay out how it works for us and where amazon could fit in here . Jonathan the first thing you need to do is look at what they are trying to achieve. They have definite differences in the way they have to conduct Business Today compared with last year or the year before. You are wondering what they are doing, but i really think, in this case, they are trying to solve their own problems. The problem is that they have to get goods to people and consumers quicker than ever before. Emily how big a threat do you think amazon actually poses to fedex, ups, dhl, the u. S. Postal service . Paul please, take out the u. S. Postal service. No, i dont think it does. It is easy to get negative and say this is obviously a shot directly at ups or fedex. While amazon is a material component, by no means, it is not over i think the deeper issue here is that we have a company that feels like it has unique needs. It has the unique needs that it has to get stuff overnight or even sameday delivery, large packages, and do it in a way that fedex and ups were set up to do it as conveniently as amazon would like. I think this is really about solving a unique logistics problem that amazon has created for itself by its amazon prime program. This is really the flip side of the remarkable success of amazon prime and you are seeing in action what the company has to do to meet its obligations through that program. Emily jonathan, when you echo that . Jonathan absolutely. You have a fixed amount of infrastructure out there that is trying to solve increasingly difficult problems in logistics space. There are so many providers out there. With respect to cargomatic, 90 of the Trucking Companies out there are six trucks or less. How do you get them to Work Together . You have to use technology or go in there and change the way business is done in general. Amazon are trying to solve their own problems, and they are realizing that you have to be close to the problem in order to solve it. Emily i mentioned i get five boxes a day from amazon. Maybe it is like one toothbrush in a box, or this morning i ordered straws and they are coming tomorrow. How is this economical longterm . Cory amazon loses money on shipping, nearly 3 billion per year. They seem to hold their losses or their gains right around about 1 or 2 in either direction. They recognize that this is the way they are acquiring customers over the long term. This is a business, cross every different aspect, with the exception of amazon web services, driven toward topline growth. Shipping is the same way. Emily cory johnson, our editor at large. Jonathan kessler of cargomatic, Paul Kedrosky. Coming up, we will take a look at amazon studios. Plus, jeff bezoss new space startup is out with claims about how soon it will send humans to space. Emily in todays edition of out of this world, jeff bezoss private space startup blue origin expects to start test flights by next year and commercial flights as soon as 2018. In those commercial flights, bezos will offer six passengers at a time the experience of weightlessness in a suborbital spacecraft. Blue orbital has not yet started taking deposits and we dont know how much it will cost, but the amazon founder says thousands are interested. Bezos told reporters he never expected to have the resources to start a space company, but he won a Lottery Ticket called amazon. Com. Amazon studios is releasing the Second Season of a series bosh this week. Erik johnson went to the set and spoke with the actors involved. How was it to see an original show in action . Cory the Second Season logic tomorrow, so the bench watchers are ready. It is the guys that did the wire and deadwood. Those are some of my favorite shows ever. It really underscores how amazon, netflix, hulu, hbo, showtime are really changing the way hollywood works. Lapd, hollywood division. Cory it is the ultimate crossplatform move. Can a book series sell a video and can a video sell a book series . Even if you didnt think of the books, he would love this as a cop show. Cory amazon is releasing a second series of bosch. The socalled new media that people didnt know where it was going, amazon took that page and kind of ran with it. Cory Eric Overmyer has produced some of the biggest hits and he did not hesitate to work on bosch. There is more good tv and more bad tv. It is an exciting time to be a content provider or writer because you have places to go. Cory it is addressed and we have these sort of technological media plays making good content. What are those platforms to you . Eric the biggest change for me was the idea of bingewatching. We can design a whole season in a slightly different way. There is no overnight ratings, but what we have is, we can track in realtime on amazons homepage. They first released the pirate and i think we had 10,000 reviews or so. Getting a good reaction. Very positive feedback from amazon. Cory crime novel readers have a notoriously voracious appetite. The series has sold over 55 million books. Most of my books sold have been online books. Cory with 22 bosch novels in print, amazon has plenty to work with. Emily how has amazons entrance into the original content business on the heels of netflix changed hollywood . Cory hollywood used to have a season, pilot season. That is what everyone worked, were busy. Hollywood doesnt have seasons anymore because of netflix, hbo, showtime. Everyone is working in hollywood all the time. I dont know if you know this, but i own a camera truck in hollywood. I own a truck in hollywood. This thing is used all year around. It is busy year around. It shows you how hollywood is really changing because of all of these things. Amazon is just part of this. Amazon is spending 2. 6 billion on content this year. All of this spending by all of these companies is really changing the way things work. Emily we will be adding that to the cory johnson archives. I now know everything. Coming up, we are speaking to the top lawyer on the egov a major deadline for the government to respond to apples court filing. The interview is next. If you like bloomberg news, you can now listen on Bloomberg Radio at bloomberg. Com and serious xm. Hey hows it going, hotcakes . Hotcakes. This place has hotcakes. So why arent they selling like hotcakes . With comcast Business Internet and wifi pro, they could be. Just add a customized message to your wifi pro splash page and youll reach your customers where their eyes are already on their devices. Order up. Its more than just wifi, it can help grow your business. You dont see that every day. Introducing wifi pro, wifi that helps grow your business. Comcast business. Built for business. It is 12 30 p. M. In hong kong. North korea has released photos of kim jongun with Nuclear Scientist after claiming they developed warheads small enough to be delivered by ballistic missiles. They have also issued news threats saying it is a knowing all agreements with soul. It will liquidate all south korean assets and hit his neighbor with clinical, economic, and military weapons. Offered withill be lawmakers voting later this month. The new leader is unlikely to be she is constitutionally barred as her late husband and two sons are british. Negotiations to change or suspend the relevant clause came to nothing. Chinas Consumer Prices jumped the most since mid2014. Rose 2. 3 from a year earlier. Food prices surging more than 7 . Declines to a record 48 straight month. The drop was less than in january. This earnings estimate hosting a profit of 911 million for the full year. It expects said demand to weekend in the retail space. It sees upward pressure. Before the results were released. Does of the headlines from bloomberg news. How the markets have been trading in the asiapacific today. Here is sherry. Sherry beginning on expectations the ecb will boost stimulus. We already had a rate cut, a surprise rate cut. Stocks up. 8 . Despite utilities theyre taking a hit as the Japanese Court order to Nuclear Reactors to be shut down. We also have data showing that the shank they shrank 3. 4 . Gaining. Be kospi is holding off on cutting rates and also even with the korean won strengthening for the first time in three days. The first game this week. It continues to lose ground. Down to 1. 1 in the morning session. So do stay with bloomberg television. Emily the clock is ticking and the apple fbi encryption battle as we approach the deadline for the government to address apples request for the government to d