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tv   Bloomberg West  Bloomberg  April 30, 2014 1:00pm-2:01pm EDT

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>> live from pier three in san francisco, welcome to "bloomberg west." innovation, technology, and the future of business. chang.ily moments away from mark zuckerberg's keynote address at facebook conference in san francisco. he will talk about everything from mobile to we will have live coverage and instant analysis. i sit down with dick costolo while facebook and google are buying robot companies, he shares his vision and addresses why there is a disconnect between what twitter thinks its future is an wall street. this as shares plunged.
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first, a check of your top headlines. diller signs off on broadcasters trying to shut down the company a week after the supreme court heard arguments in the case hitting aereo against broadcasters. diller accused broadcasters of trying to stifle innovation for their own gain, saying if you stop aereo, you stop technology. diller made these comments on the iac earnings call. cox communications getting involved in the high-speed internet battle, offering internet speeds 100 times faster than standard access. cox did not give a timetable for when the service will start. google fiber and at&t are offering similar services in select cities. onrosoft's xbox one will go sale in china in september. this comes after china lifted a 13 year ban on video game consoles. microsoft did not provide details on -- nintendo and sony
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are planning to enter the chinese market. now to our story, mark zuckerberg will be taking the stage any moment now to give his keynote address at facebook's developer's conference. this is the first conference since 2011. 1500 developers are attending the event. it is one day, more than 20 technical sessions are on the schedule with many focused on monetization. at erlichman is live from f8 san francisco's design center. set the stage, what is going on? >> you highlighted that there are hundreds and hundreds of some are running very small apps, some are very big executives. we're next-door to the headquarters of zynga. just walkingnga in, i spoke to him about why he is here. in the early days of facebook,
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as they started to grow, companies like zynga were important partners for facebook. able to have app developers, developers of games, all sorts of stuff living in the world of facebook was good for facebook. it helped facebook generate revenue. now we live in a world where a lot of people are using facebook on their phones. the business numbers tell us that story more than half of their advertising revenue now is tied to those ads that pop up when you are using facebook on your phone. how does facebook will with developers in that world and stay connected? there has been discussion about the likelihood that facebook will unveil its own ad network today. what does that mean? in some ways it means that facebook has already had a lot of success with its own advertisements and they are looking to mobile areas. >> jon, mark zuckerberg has taken the stage. >> we're focused on building a stable mobile platform.
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to build great mobile ads in businesses and we went to bring this community together once a year to talk about all the different things we are doing to help support you. so we have heard from you that you want to use facebook platform for three main things. to help you build, grow, and monetize your apps. identity,hings like sharing, push notifications, at install, networks. the best way we can help you improve people's lives and connect the world is by providing you with a stable mobile platform to build, grow, and monetize your apps. we will help you build with pools like login, which are now used by more than 80% of the top ios and android apps. we will help you grow with stable distribution like the more than one billion app installs we have driven to your apps. and we will help you monetize and build stable businesses, like the more than $3 billion in
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payments we have helped process for you in the last year alone. so, most of you are building mobile apps. years, we haveew made this transition to being a primarily mobile company ourselves. just a few years back, most of our business and most of our usage was on desktop. now, more than one billion people use all our mobile apps. 20% of all time spent in apps on phones is spent and facebook apps. the majority of our business is on mobile. foran be annoying to build mobile. the mobile ecosystem is so siloed. apple and google have vertical platforms, microsoft has a vertical platform. then there is the mobile web. these are all important platforms and are growing. the thing is, all of these companies are just trying to compete and make their own platforms better and more
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different from the others. no one has an incentive to help bridge the gaps between these platforms. and makes it easier to build on the competitors platforms. as a person using a phone, this is terrible. i just want to be able to buy a film and have all caps that i want work. as developers, of course we want tools that work across these different platforms. it is really annoying when we have to build the same thing 3, 4, or five times just because of these different stacks. our goal with facebook is to build the cross-platform platform. the tools you need to bridge these worlds. we all want identity across platforms and sharing across platforms and push notifications and app installs and monetization. facebook platform is about, building the cross-platform tools you need to build, grow, and monetize your apps everywhere. ow, it is natural for us to
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focus on these things because a lot of these tools are the same things we have needed to build for ourselves in order to help more than one billion people connected across the different systems. are really focused on building a stable mobile platform. might not know is that all of our own mobile apps are built on top of the very same platform and api's you guys use when you are writing for facebook. all our engineers use the same tools and read this and documentation that you do. because of this, for the past few years as our apps have grown, the number of requests our platform handles has grown by 20x. we handle almost half a trillion requests a day. scale up is, when we we have improved performance by more than 40% on average response time and have reduced the already small amount of
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downtime by more than 70% over the past few years. important for you and for all of our teams internally that we build stable and efficient infrastructure that you can rely on for the long term. this has been a really big focus. we used to have this famous mantra, move fast and break things. the idea here was that as developers, moving quickly is so important that we were even willing to tolerate a few bucks to do it. it. few bugs to do we realized this was not bugsng, fixing the was slowing us down. we have changed our strategy from moving faster. now we focus on building the best tools and infrastructure to build on top of. move fast with stable infra
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might not have the same ring to it. [laughter] it helps us build better experiences for all the people we serve. it is how we operate. with this theme in mind, i want to start by going through a few things we are doing to make our platform even more stable and reliable for you to build on top of. to build, grow, and monetize apps. one problem we all have -- we write apps and want them to run on lots of different funds, including all platforms. you want to know it is going to be able to work for a while. today, for the first time, we are introducing a two-year stability guarantee for all our and platforms, including login and sharing. [applause] means that even if we change the core api's in the future, we will keep supporting
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them for at least two years and maybe longer from the time we make that change. we will still experiment with new features and different things but we will clearly marked as as a vest so you know what is part of the core stable platform. we are introducing api versionin g. we want to make sure all that apps we wrote two years ago keep working. this is something we wanted internally. now, every api we launch is going to be a versions, you can decide which version you bill against. we are introducing an sla that we are committed to fixing major 48 hours. we are usually even faster than this. for the first time we want to put in place a firm commitment that we are going to be able to fix all these major bugs within 48 hours. produce an even more stable mobile platform.
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hardening our platform for our improving performance and a stability guarantee, api versioning and a bug sla, we can help you shift more great apps. stability is the first theme today at f8. now i want to change gears for a moment. for today isheme going to be putting people first. we serve a lot of different communities here. developers, advertisers, employees. one community is by far the most important out of everyone. that is the people who use our product. it, thehink about reason we are all here is because of them. it is really important that every single thing we do we always put people first. over the years, one of the things we have heard over and over again is that people want
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more control over how they share their information, especially with apps. and they want more say and theirl over how apps use data. we take this really seriously. if people do not have the tools they need to feel comfortable using your apps, that is bad for them and bad for you. it will prevent people from having good, personalized experiences and trying new things. it also might hurt you and prevent you from getting new customers. we need to do everything we can to put people first and give people the tools they need to be able to sign in and trust your apps. we know that some people are scared of pressing the blue button. a lot of you who have even had personal experiences who have felt this. it is the common feedback we get. you doare using an app not completely trust or you are
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worried might span your friends, you are not going to want to give it permission. last year we took the step of separating out read and publish permissions, apps can no longer require you to give them the right to publish to your friends in order to sign and. importantthis was an step. it helped people trust the blue button. toay we want to do even more put control and power back in people's hands. now, whenever you sign into a new app, you will see this dialog. able toant, you will be change, line by line, what you share with this app. in this case -- [applause] sign in.ase, i want to i might not be comfortable sharing my e-mail adjust or revealing exactly how much i
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love lana delray. maybe i do not want to listen to "summertime sadness," whatever the reason. i don't want to talk about it. ck these boxes and i am done. with the new login, i can sign in on my own terms. if i do not want to edit anything, i can sign in with the same number of taps it took before. no extra friction. as a developer, this is going to help more people be comfortable signing into your apps and engaging with them. we have heard really clearly that you want more control over how you are sharing with apps. this new login is all about giving you that control. thatve also heard sometimes you can be surprised when one of your friends share some of your data with an app. to benot ever want anyone surprised about how they are sharing on facebook. that is not good for anyone.
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in the past, when one of your friends logged into a app, the app can ask to share data his friends shared with him. like photos and lists. we are going to change this and make it so that now everyone has to choose to share their own data with an app themselves. this is a really important step for getting people power and control over how they share their data with apps. as developers, this allows you to keep building apps with social features by also giving people power and control first. i am really happy we are doing this. there is one more login product i want to talk to you guys about today. how many times have you wanted toan app and try it out but you have not
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wanted to create a new account or you are not ready to sign in with your real identity. today, we are going to solve this with a new service we're introducing called anonymous login. [applause] the idea here is that even if you do not want an app to know you are, you still want a streamlined experience that removes the hassle of filling out all these different fields. this is what you are going to see the first time you tap the button. after subsequent times, it is one cap to get in. you want a hasslefree way to log in and try apps. you what an experience that can devices. across we will provide anonymous identifier even if we are not telling the app who you are. you will have an experience that is synced with outlook app -- wi thout the app knowing who you
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are. if you want, you can always sign in to personalize the app once you're more comfortable. that is anonymous login. we are really excited. the new login and anonymous login are examples of putting people first in the way we designed this platform. by giving people more power and control, they are going to trust all that apps more and use them more. that is positive for everyone. these login tools are examples of the kinds of cross-platform services that make up facebook platform. power plays is to build a stable mobile bridge. -- power plays is to build a stable mobile bridge. like to walk you through the other things we have been working on to help you
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build, grow, and monetize apps. i would like to hand it off to ilya to take us through the build pillar. >> mark zuckerberg finishing his address at the f8 conference in san francisco, handing it over to the ceo of the company they bought a year ago that will help developers create and build mobileack end experiences. i never of things he announced. login anonymously with facebook as opposed to login with facebook. a lot of people are scared of. the ability to anonymously lo g in. ouruld like to bring in panel of special guests. jon erlichman is on-site at the f8. joining us via skype is ben ddgg, ceo of ac
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knowledge. and from san diego paul. make of what you zuckerberg had to say? presentation with a one more thing like steve jobs used to do. >> i wish you would not have gone there. i guess so. i found it painful. i understand what he is trying to do. the issue with respect to anonymous login is important. too many people stop right there and there is no way i'm going to release that information and log in via facebook. that is what has to happen. with respect to some of the other things, specifically the change in move fast and break things and move fast with stable infra. that is fascinatingly
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overliteral. it has all the pizzazz of paving sidewalks. i do not get who the constituency is other than not scaring developers, it does not advance the company from an innovation standpoint. you think he means by building a cross-platform platform? facebook wants to give developers the ability to build across apple, android, other mobile devices, and the web. it sounds benevolent but is that the real story? >> facebook wants to stay in the mix. if you were to ask the average smartphone user is their life miserable using apple to go to the app store and get apps that way, they would say it is not that bad. facebookstrating for to stay very relevant in your life in a world where you are choosing to go between apps all the time.
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facebook is an app. that aree comments going to be very telling on the business side of facebook over today. being able to say we are going to be part of your story wherever you are on the mobile web. and i think the real focus on login is this is a reminder that facebook wants to stay with usinge, whether they are facebook or not. one of the things you will hear them talk about today is how much money these developers can potentially make by being on the team that is facebook. boeing pa -- >> parse is a provider of backend services for facebook apps. focusing on experience and monetization and not having to worry about back end stuff. ben, what do you make of this idea of a cross-platform platform? and the ability to log in
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anonymously. the three things that mark said to the audience. we want to help you build, grow, andmonetize your apps business. i am not sure people said they wanted that but they are three objectives for people developing apps/ good user, provide a experience and do it fast and cheaply. if you can develop one platform for any kind of app that works across android and ios, that would improve your speed to market at launches and reduce costs.velopment we're light on details but that could be a good thing. in terms of growth, facebook has a lot of credibility. they are the number one source of most apps in terms of getting downloads and getting on phones. say aboutt be more to the mobile network that would increase the volume available. i guess monetize, mark,
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he will talk about that and mobile networks and ads. >> how is what facebook offers to developers different than what other companies offer? it is not clear yet that it is. a lot of this is currently rhetorical. it is worth remembering some history. zynga. jon mentioning nukedok am more or less the app ecosystem. companies like zynga were damaged because of facebook's changing strategies with respect to how it would support app developers. from a tool standpoint, there is rough parity. there is deep-seated suspicion among developers with respect to the stability of the ecosystem and facebook's tension for nuki ng the system. the suspicion of
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what facebook is doing with all the information? his do you make of acknowledgment that people are scared to login with facebook and do not want to share everything. they are trying to give users more control over what information they do share. that is a safe thing to say and a smart thing to say. it is absolutely true. in some cases, people are not comfortable with that. the first thing he said was that when it comes to using facebook login, with the most popular ils apps, a huge number of people are doing this. there are a lot of people comfortable doing this. and youabout twitter spoke to dick costolo. the market reacting negatively to concerns about how engaged people are on twitter. people are very engaged on facebook. that has allowed them, with all
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this information they have on you, to give you very specific and very targeted ads. ads are about getting you to download other apps. they are going to talk a lot about that today. they will talk to at developers and say there are huge opportunities for us to work together on that. side, facebook has been doing pretty well. just look at their numbers. >> let's talk about that. some people are hoping for more information about the mobile ad network facebook is soon to unveil. more on how they plan to use video ads. what does all this mean from an ad standpoint? you were the former ceo of google europe. -- facebook has got so many they have proven to be the most in terms ofd team
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thinking out new ways to resonate with consumers. clearly video ads are coming. far, aave been taught so lot of innovation. second to none. think about what facebook knows about the consumer. video ads will not just be the same as tv. they will be like tv ads but less intrusive. with pinpoint targeting. mobile, the mobile ad network for mother has been a lot of talk in the press. facebook can probably help games and people with apps monetize at a better rate. >> we will have to leave it there, ceo of adknowledge.
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paul, thank you so much. still ahead, my interview with twitter's dick costolo. can twitter really become mainstream? later in the show. ♪
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>> you are watching "bloomberg the futurenology and of business. twitter's future is bright according to twitter. the stock is plunging after its latest earnings report. membership in the first quarter hit 250 5 million monthly active users, the growth slowed from 30% to 25% year-over-year. growth re-accelerated sequentially, the stock was pushed to its lowest level since november, despite showing strong revenue growth. i spoke with twitter's ceo dick costolo. i started by asking this question. a lot of people are questioning whether twitter can ever be
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mainstream. he believes it already is mainstream. i asked why. >> a lot of people think of twitter as the product or just a website. the reality is twitter is in front of people around the world everyday. constantly, it is all over tv. i was watching the adam silver announcement yesterday about nba, there were tweets under his press conference the whole time. after thee days oscars, over 3 billion views of tweets just about the oscars on twitter. all across the web. in print, on air, it is already embedded into the fabric of the culture. not just the united states, but the world. in that sense i think of it as a mainstream platform. and a durable and lasting platform. story isvenue incredibly strong. revenue more than doubled year-over-year and revenue per
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user is up 75%. revenue per 1000 high mind views is that 95%. analysts are zeroing in on investor growth, which did slow down. but re-accelerated sequentially. why do you think there is a disconnect between what you see as the promise of twitter and wall street? >> to your first comment, financial results, we are going to be judged on our financial results so we are delighted on our first-quarter results. particularly around revenue acceleration on top of q4. vis the dissonance between what is happening inside the company and the expectations, when we had the day of our ipo i told you we have a lot of work to do. taking the mainstream understanding of twitter as part of the culture of the world and helping those people understand the value of logging in to
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twitter. we have a lot of work to do that we started on. i love the progress we have made. it is showing great results in q1 and needs to continue on building on the things we have done in the product to make it easier to use and rich that gap between awareness and engagement. >> is there something about twitter? if you took the name twitter off the earnings report, the response would be different? >> in which regard? >> the results are strong, why are they focusing on this number. on me to helpbent the world understand the value of the broader platform. we have a platform with billions of views about an event in just 48 hours. when you look at other mainstream platforms, take youtube as an example, the bigger content gets billions of er a month.wer
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we can get your advertiser over one billion ios and android users. thousands of mobile applications. if you have a smartphone in your pocket and you fire it up, fire up one of the apps, more than likely you will see a twitter at. it is incumbent on us to articulate the story of how big the broader platform is. it is so much bigger than the website or the application. profileave revamped pages, i really like it. the ability to pin tweets. >> actually. >> i was a little worried, when you change the product, people are used to using it one way. what else can you do? you have done so much. >> the kinds of things you just described, making twitter more visually engaging. helping people see the most valuable content on the page, those are the kind of things you
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described. bringing that to the rest of the roddick, making it more visually engaging and pushing some of the scaffolding of twitter that is opaque for new users, pushing that to the background. allowing users to mark tweets as significant. arekinds of changes we already making are showing great results. address those to the entirety of the product. productuch experimentation are you doing on a daily basis? i have heard google say they are using thousands of experiments. >> in our latest ios or android 100, there are well over experiments running in each of those apps. hundreds. framework we that have worked on over the past 18
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months or 24 months is the speed with which it allows us to run more and more experiments and quickly get data from those that we can compare to a control group. the faster that we can move on those kinds of things, the faster we can execute change. of my interview with dick costolo coming up. and you can watch us streaming on your phone, your tablet,, and amazon fire tv. ♪
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back, i'm emily chang. back to my interview with twitter ceo dick costolo. twitter recently posted google maps director demographic -- dan graf, i asked costolo how he sees graf working with footer's
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coo and himself. ondan will be working consumer products. he was director of product for google maps. you have a great consumer, what everyone would agree is a atderful consumer product scale on the ios and android platforms. daniel has been the ceo of a startup. i love the entrepreneurial spirit. what you will see is dana ali and tied to implement the strategy we have already laid out and bring the entrepreneurial spirit to the team and probably come up with a bunch of his own ideas. >> when you talk about getting users engaged, a lot of twitter is one way communication. to be fully engaged, you have to tweet. >> the majority of active users on twitter tweet. there have been some strange
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third-party reports that have gotten that wrong. the majority of active users tweet. we scale and continue to grow. users 14 million net new in the first quarter, it will likely be the case that more of those users will come to the .latform and be consumers we make no distinction as to whether someone does or does not have too tweet, nor do our marketers. it makes no difference whether they are consumers or consumers and producers. i have heard you call twitter .he global town square yesterday you called it the companion experience to what is happening in your world. i am glad you asked me that. the thing i really like about the companion experience to what is happening in your world.
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a crisply articulates for our product and design teams what they should and should not be building and service to our vision for the product. love the cloak yield metaphor of the global town square and the visuals it creates for people. again, the metaphor it creates. i do not think it is as good as in the product and design team what they should bill for users. the companion experience to what is happening in your world, it is a more crisp definition. >> messaging apps are hot. you want to enhance the ability to move between public and private messaging. thatus some color on what would look like for twitter. >> i talk about direct messaging . there are frequent public conversations on twitter,
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twitter is entirely public conversations. it is real-time public and conversational. there are public conversations that you would like to grab hold of and take into whisper mode with a friend. look what these people are talking about, what do you think? being able to move fluidly between that public conversation and the private conversation is something that will make it simpler. >> in terms of the bigger picture, class of 2013 technology stocks are being revalued. younasdaq is down, how do pay attention to what is going on in the market environment and how much pressure do you feel? >> the market environment is always in my periphery. we have a very specific way of thinking about the long-term plan for the company. it is about balancing investment and growth and operating efficiency. making sure that we are improving margins.
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an ever-increasing drive towards profitability and improving margins. reinvesting and growth. that conversation of growth, operating efficiency, and leverage is the way i think about how we will build the company. while always a paying attention to the market. conference's f8 happening today, they are launching a mobile ad network and getting into visual ads, how does this compare to twitter's offering. exchange, thead differences are we are already in the market with thousands of mobile apps. and androidon ios users. if you are an advertiser and you want to reach people on their smartphones today, you can come to us and we can get your ad in front of over a billion ios and android users today. my interview with
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twitter's ceo dick costolo. coming up, talking about twitter's tv efforts. after "bloomberg west, stay tuned for our coverage of the excellency decision at 2:00 p.m. eastern. ♪
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>> i am emily chang, this is "bloomberg west." yourming on your phone, tablet, and more from my interview with dick costolo. twitter is snagging more of the coveted tv ad pie. social media is not driving tv viewership. i asked costolo how he makes sense of it? >> when we develop our tv strategy, it was because we had data that we saw and experienced ourselves that helped us understand that there was a complimentary, two-way relationship between twitter and
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tv. i mean that not only did twitter tv wasune in, complementary to twitter. that have invested in strategy, there has been an ever-increasing and continuing drumbeat of independent, third-party research -- fox research, nielsen, and others. and has reinforced validated that complementary, two-way relationship. the nielsen study even saying there are three things correlated with tv ratings. the prior year's ratings, ad spend, and twitter. that reinforcement we have seen in the market from these third the additional and continued investment from our broadcast partners like nbc and new partners have told us we are on the path. >> the buzz is more than just buzz. >> i think so. >> facebook and google making bets on the future, buying robot
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companies. whatsapp. what bets are you making? what is the vision that gets an engineer excited to work for twitter? >> we are strengthening our core products. we are strengthening our core product -- twitter and vine. most of the acquisitions we have made are about strengthening the core. most of the work is about strengthening the core. beingave to ask you about here in san francisco, gentrification. the inequality debate has been directed at twitter. how much are you thinking about that and what can twitter do from a philanthropic perspective, given the uniqueness of the platform? the city, started in we have been a company that has been in the city since we were created. so many of our employees live in the city. it is super important to us.
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significantly, we spend a lot of time as a company talking about it in meetings. we have some very explicit, direct connections with community groups and the neighborhoods in which we operate. we have some really exciting announcement coming up about those relationships with these community groups that we are working directly in the neighborhood in which we work and live. i am looking forward to being able to talk more about those in the almost immediate future. twitter's ceo dick costolo with a reaction to the interview and twitter's first-quarter earnings. i bring back paul. of dick minutes on cut costolo. what is the one thing that stood out to you? >> i'm glad it was you doing it and not me. meanis interesting wise, i in the spirit of full
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disclosure, i would give the same feedback to twitter. there is a real disconnect about how the company thinks about itself and how the market thinks about it. this is less about -- hence the surprise, evidenced by the market behavior to what the company thought was a strong earnings number. and then we had the sellout today and after hours last night. the disconnect comes from different places. myriad number of slogans for what the company does. the global town square, the companion to your life. i was joking earlier on twitter, these are getting close to being like fortune cookies. bed" and they"in get more entertaining. there is a deeper structural problem. theets want to believe company still has the capacity to surprise on growth. when it sees these kinds of monthly active user numbers, it does not think that the company
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has the pacitti to surprise on capacity tos the surprise on growth. shares down more than 10% today. i went to get back to jon erlichman, live at f8 with more interesting headlines. jon? onthey have now focused more the making money part of today's announcement. they are breaking a lot of these developers together because they want to generate more advertising revenue and use facebook as a partner in that. that has been a key focus of the discussion today. they also talked about new tools that allow you to move from our and avoidm app to app using browsers. that is a way facebook is trying to stay relevant in the mobile world where applicable are, -- where apple and google are dominant. >> is twitter being held to an unfair standard, people wanted
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to the facebook? >> that is a fair criticism of how people look at it. you have to turn it around and say there is a presumptive issue with respect to the price at which the stock trades. see moreoing to dramatic growth from the company and the possibility of the first two quarters after going public of considerable upside surprise. game isthe way the played, you set the company up for success by bringing it public when it has the capacity to surprise investors. if you do not have the ability to surprise, you get revalued at a low growth stock or a valued stock. this reaction is not surprising given that the organic growth numbers suggest this is a company that is still growing. but not growing in a way that is going to say oh my goodness, they are much larger than we expected and they're going to partial competitor to facebook worldwide.
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that is not in the cards. >> before you go, jon has a bite for us. a number that tells a lot. >> i have 14, the letters in the word "infrastructure." zuckerberg said we are shifting away from a saying "move fast and break things." we will replace that with "move ," shorth stable infra for infrastructure. using the full word would be too long. the internet has gone crazy and making fun of facebook as a result of this new saying. kind of mark zuckerberg moving to this because raking everything all the time actually eats up a lot of man-hours, we want to try to ride the wave more consistently. >> thumbs-up or thumbs down, paul? >> what, the slogan? >> yeah. isno, i hate it, it
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tweetable. >> i am glad you always tell us how you really feel. live from f8. that does it for us on "bloomberg west." we will be back at 3:00 p.m. pacific and 6:00 p.m. eastern ♪ >> from bloomberg world headquarters in new york, i am mark crumpton. a special edition of quote bottom line." the federal open market committee has been meeting for the second time under janet yellen. in march, it announced further tapering of economic stimulus programs by cutting purchases to $25 billion and longer-term treasuries to $30 billion a month. to cut bys expected $10 billion total.
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the fomc releases its statement at exactly 2:00 p.m.. let's get you set up for the announcement. joining us is josh, an economist with bloomberg economics in our atlanta bureau. josh was with the new york fed, where he helped manage its $1 trillion mortgage backed securities portfolio. ira at credit suisse. bloomberg economics editor michael mckee. on the markets are julie hyman. thank you. let's start with you guys. what are we expecting? >> how about those mets? [laughter] thatng going on at the fed would leave you to believe they're going to make any policy change other than tweak their assessment of the economy. there is a feeling we are coming out of a weather-related crunch, the economy is getting better. nor are they close enough to meeting their mandate to get
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talk of rate policy change. steady as she goes, another reduction in qe. >> ira? >> there might be more interest in the minutes this time. three weeks from now they could be more interesting. they could up their exit strategy, given the fact that the economy has been weak. no one is expecting them to hike for a hwhile. >> josh in atlanta, steady as she goes to that? >> i agree. i think the minutes are likely to be very interesting coming out of the meeting. they have a couple things they can talk about. add conditions to the forward guidance. there will probably be some debate as to what date is the right stuff to look at. how do you evaluate labor market slack? there will be a discussion of that caused so much trouble at the last meeting.
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,e have seen one fomc member dennis lockhart, talk about labeling the chart. in the minutes there is something to learn. >> no press conference today, which is why they cannot make any changes. janet yellen would not be able to explain anything. >> we are expecting an announcement in less than a minute, let me go to julie hyman. what are the markets going to be looking for? >> and a change. it is widely expected we're going to see reduction in the bond buying. not much change. saying that reflected and stocks. not unusual on a fed day to have very little change going into the meeting. some volatility right after the statement happens. as people figure out if anything has changed. if you look at the treasury markets, not a lot of change. a little bit of buying of treasuries, pushing the yield
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slower because we had the gdp report as well. julie hyman joining us from the bloomberg data center. thank you very much. the fed decision is coming up in a moment. peter cook is standing by with details. very fewper continues, changes in the statement today. remains theance same but taper continues, down to $45 million a month and by buying. -- in bond buying. $20 billion for mortgage backed securities. 25 billion dollars for treasuries. they will likely continue at that measured pace if information holds up. no changes in forward guidance language. the biggest changes have to do with the economy, there is a sense that the fed sees traction in the economy. information received since the fomc


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