ruled that apple can no longer force developers to use its payment system in apps. the judge granted them an injunction sought by epic games while ordering the game maker to pay damages to apple for breach of contract. the order could take a big right out of profitability of the app store. according to analysts, it takes in more than $20 billion a year with the profit margin above 75%. the biden administration is weighing a new investigation into chinese subsidies and their damage to the u.s. economy. bloomberg learned top economic advisers are meeting today to discuss the potential probe as a way to pressure beijing on trade. this follows a phone call between president biden and his chinese counterpart xi jinping, in which president biden's frustration is with beijing's like of seriousness and engaging with his team. a question many parents are asking, especially as schools reopen, when will children under

12 be able to get vaccinated against covid? the fda says they are working around the clock to support making the shots available to children but cannot give a specific timeline. the agency says it's emergency use authorization review is likely to take "weeks rather than months." in haiti, nearly one million people are facing what officials called acute food insecurity after last month's massive earthquake. farms and food processing distributional facilities, even before the earthquake, faced one of the biggest through shortages. the government is addressing or assessing rather the damage, but even conservative estimates say it likely tops 3 billion. global news, 24 hours a day on-air on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries.

i am mark crumpton. this is bloomberg. amanda: welcome to bloomberg markets. matt: well both our bloomberg and bnm bloomberg viewers. here at the top stories we are following him around the world. apple shares tumble after that antitrust ruling involving epic games. a federal judge orders the company to change the way it operates its app store. academy sports and outdoors reports record sales in the second quarter. we discuss the results with the ceo. later, we focus on the september 11 20th anniversary. amanda: a high-ish read on producer prices did not seem to

slow down equities too much. we have higher moves across the board. it has been in positive -- moderate to really positive territory, just to be negative. we will watch the nasdaq because we are keeping our eye on apple. we will bring you more on that in a moment. that stock is moving intraday on news of its own. materials are the leader. trades from energies and industrials. one of the leaders here, we are going to watch amazon on an intraday basis. it may get a bit of a move. there is a report that it is a front runner for the nfl sunday ticket, a package of games that would land on amazon prime presumably, and this would be a great value. we could probably agree, a certain sign of the times of these content streaming companies and amazon taking its place as one of the new guards. matt: according to cnbc, who is

reporting that amazon is the front runner in the bid for the sunday ticket, of course, this is the first sunday back for the nfl. i know a lot of people who are planning on spending the entire day on their couches watching football, and in order to do that, you really need to have, especially if you are a fan of 18 out of your local region, -- out of your local region, you need directv. there is no other way, unless you go to a sports bar, and then you have to hope they have a couch and good wings, right. this would take all of that business away from directv and with the huge for amazon. anyone who was a fan, for example, in toronto, i would assume you cannot see many nfl games, so you probably have to use directv now, and you will have to get amazon prime, as will all the sports bars in your area. amanda: it is really interesting. of course, before that, amazon

news, we will continue to watch it. we were watching apple stock on an intraday basis. it did decline, and dragged the broader market with it being cap weighted as it is. apple is treating it as a mixed ruling in the ongoing dispute with epic. emily chang is with us now. you are following this closely. let's start with victory being claimed by both sides. from apple's point of view, it could have been worse? emily: absolutely. apple says this is a validation of the app store and the business. i got off of a call with apple's general counsel, who says they are so analyzing the decision by the court confirming apple is not a monopolist. it is the key thing for them and that this is "a huge win," but it is more complicated. a judge granted an injunction against the payment model, saying apple has to redirect

consumers, offer the ability for apps to redirect consumers to pay outside of the apple payment system, and that could take a huge bite out of the profitability of the app store. what apple is calling a victory is this statement from the judge , where she says, i cannot say that apple is a monopoly. the court cannot conclude apple is a monopoly under federal or state antitrust law. she says there are procompetitive things about the app store, as well, but she comes back to the payment issue that way that apple forces developers and apps to pay within that system, the rate that of that 30% cut is not justified in something apple will have to explain. matt: it seems like apple is really trying to spin this to be a huge win, but the market is saying, definitely not a win.

in fact, they are selling off apple shares to the tune of $60 billion today. it does not look like mr. market believes this. the judge is ordering them to allow consumers to use outside payment methods. that will take a huge bite out of profitability. analysts believe they make $20 billion in revenue on the app store with a 27% margin. a huge win for apple is going to end up costing them a lot of money. emily: absolutely. the app store brings in $20 billion in revenue a year, and we don't know how much the ruling is going to potentially cut into that. it also potentially opens the floodgates for lawsuits and counter developers claiming that apple owes the millions of dollars. interestingly, it is not totally clear cut on the epic side. tim sweeney re-tweeted that

statement, the ceo of epic, saying it is not a win for developers or consumers, but for one billion customers. however, they are not going back to the app store anytime soon until epic can offer in app payments in fair competition with apple and pass the savings along to consumers. this is not end here. there will be appeals and it will go on several years. apple is under a lot of scrutiny. amanda: of course, there are other jurisdictions that have yet to rule and they may not agree that this does not constitute anticompetitive behavior. emily: epic has sued apple in the eu, u.k., obviously, there are other countries looking at this. south korea became the first country to force apple and

google to offer alternative methods of payment to consumers. south korea could potentially lead the way in a radical stage of how the app stores operate. matt: emily, thanks. emily chang talking to us about this ruling on the apple-epic decision. we will have full coverage on the ruling on bloomberg technology at 5:00 p.m., new york time. even on friday night. time for stock of the hour. affirm holdings has had a bevy of the news lately, following its new deal with amazon. strong fourth-quarter earnings. jay wilson is taking a look at the market reaction. -- dave wilson is taking a look at the market reaction. dave: we are talking about a buy now pay later service with a firm and installment buying. they went public at $49 a share, almost triple at the outset. gave back the entire game, and

the past two weeks has been taking off a new. it started when they reached an agreement for amazon.com to provided service to customers. if you are spending more than $50 on amazon, you will be able to buy and installment plan with the firm providing the financing. now you have quarterly results. we are talking about the fiscal fourth-quarter. there is a lot of growth tilt into the numbers. they made more than twice as much on a volume and remember, customers are up almost twice as much with revenue jumping 71%, beating analysts average estimates in a bloomberg survey. we are talking about a service that is used to buy a variety of items. there are half a dozen categories you can look at, and

a lot of them account for more than 20% of purchases. it goes to show you how broadly people are using a firm's by now pay later approach to be able to -- buy now pay later approach to be able to pick what they want, even if they don't have the cash upfront to do it. amanda: the whole installment payment sector is huge at the moment. how much is a specific company story and how much is industry growth? dave: a lot of it is the industry. maybe the best way to look at it is when rbc capital markets rejected outgrowth from 2019 through 2023, for different forms of paying online. you go from 4% a year on average for credit cards all the way out to 28% for a buy now pay later financing. it is clear that is where the growth is, and it is understandable that affirm would

be unpopular company about now. you can understand why amazon would want to do business with them. especially because people are taking this approach much more so than they have in the past minute comes to being able to afford what they want to buy. matt: dave, thank you. dave wilson, senior stocks editor talking about affirm. coming up, academy sports and outdoors reporting record sales in the second quarter. we discuss what is driving demand on the back of that earnings report with the ceo, ken hicks. this is bloomberg. ♪

matt: this is bloomberg markets.

i am matt miller with amanda lang. shares of academy sports and outdoors reported second quarter above-average outlooks. let's bring in the ceo ken hicks. what is driving this surge in earnings? ken: we are in the fund business. that is what we sell. right now we need more fun, but when you look at the things we sell, they have to do with the trend towards wellness, being outdoors and having fun. that is what people are buying. amanda: what has your pandemic experience been like? we imagine a business like yours has benefited and it seems to have from the pandemic. however, retail has obviously been hit hard in the midwest and south. what are you seeing?

ken: we were open all through the pandemic as an essential retailer, and we sat a shift in the consumer last year. people were buying things that were exercise equipment, camping , you know, and now they are buying or apparel, footwear, team sports, licensed apparel, but all of our businesses are performing well, but we have seen a shift throughout the pandemic as the customers have moved from just hunkering down to now being out and doing more things. matt: what does the future look like for retail? clearly, during the pandemic, almost all shopping was done online, but people still want to, i assume, especially with this gear, to be in a brick-and-mortar store, to touch and feel it before they pay for it. ken: a lot of our businesses,

things people touch, are difficult to buy online. it is difficult to ship a kayak or treadmill. a large portion of customers coming to the stores, and we are growing our.com business, but it is still primarily done in stores. i think the future of retail, particularly in the sports and outdoor area, is very good because of where the trends i mentioned earlier are, but also the brick-and-mortar portion of that are good because people want to feel the baseball bat or need to pick up the kayak or one to see how heavy the top of a girl is before they buy it. -- of a grill is before they buy it. amanda: what are you seeing in the quarters ahead in terms of supply chain and inventory? ken: supply chain definitely is

having its problems, and we have experienced them. right now, we are in good stock position. this is like last year where there were categories of fitness equipment or camping gear that were sold out. we have a good inventory of everything in the store, but it is not where we would like it to be. we have good line of sight that we will have the merchandise this fall, but there will continue to be challenges getting into. position. next spring will continue to be challenging because of some of the disruptions that have occurred in asia. matt: let we ask you about the market right now. you have got a ton of experience as former ceo of footlocker and you have another businesses that have seen up and downs -- ups and downs in the stock market. now you are at a company that went public a year ago, and you

have already tripled since the ipo in terms of price. what do you want to do at this level? is it smart to go out and maybe raise more capital while the market is exhibiting so much exuberance? ken: we are in a good position because we generate a lot of cash for the opportunities we have. yesterday, we announced a buyback because, as you mentioned, we believe the stock is cheap, but more importantly, we plan to add stores and expanding 16 states. -- expand in 16 states. we believe our idea can go across the entire country. we also have a limited .com penetration and are making investments there. we are in a fortunate position where we can self fund most of what we need to do. at the same time, grow and recognize our shareholders.

amanda: not a ton of time, but when it comes to prices, you mentioned supply chain issues. are you seeing price increases in your cost that you may have to pass on to consumers? ken: we are seeing price increases and transportation cost increases, and as a valued retailer, which is important, we have to be careful on what we are able to pass on and what we have to absorb. so far, we have been able to manage between that and continue to grow our profit. pricing is very complicated right now because of the price of goods going up and shipping costs going up because of supply chain challenges. amanda: good to have you with this. appreciate your time. ken hicks is the ceo of academy

sports and outdoors. coming up, we take a look back at the attacks of september 11, 2001, and the 20 years that have passed ahead of tomorrow's anniversary. stay with us. ♪

matt: tomorrow marks 20 years since the september 11 attacks in the u.s., or 3000 lost their lives at the pentagon and world trade center. david westin took a look back at the extraordinary losses that date and the evidence that followed on tonight's "wall street week." david: america heard the news as it was going to work, to school, or just waking up. >> an airplane reportedly has crashed into the world trade center. that is a live shot. david: 70 minutes after the first plane hit the world trade center's north tower, a second plane hit the south tower.

president bush was in florida visiting an elementary school. his chief of staff leaned over and whispered, "america is under attack." a third plane crashed into the pentagon. a fourth claim appeared to be heading to washington, but it crashed in pennsylvania after passengers and crew try to regain control from the hijack. by then, the faa took an unprecedented step, every u.s. airspace was ordered to land at the nearest airport. three days later, president osha went to ground zero -- president bush went to the ground zero. what began as a global war on terrorism was about to begin. > i can hear you, the rest of the world hears you, and the people who knocked these buildings down will hear all of us soon. [cheering] david: wall street never opened on 9/11. the open was delayed after the first plane struck and then

canceled after the second plane crash. marcus would not open until the following monday -- markets would not open until the following monday, the longer shut down since the great depression. once trading resumed, there was a massive selloff. the biggest one-day loss in the history of the stock exchange. dow jones industrials were down 14%. by early october, stocks or backup to the day before the attack -- stocks were backup to where they were the day before the attack. almost an entire generation has grown up since 9/11. on this 20th anniversary, many will join those who can never forget that day and remember the nearly 3000 people who were lost.

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mark: i am mark crumpton with bloomberg's first word news. president biden is lashing out at republican governors for a

fighting mask mandates and other covid-19 precautions in schools. speaking at a washington, d.c., middle school today, he accused the governors of endangering children and being "cavalier with the health of kids," and said measures like wearing masks are proven to be effective. >> i want folks to know that we are going to be ok. we are going to be ok. we know what it takes to keep our children safe and schools open. we have tools to do it. mark: republican governors, including ron desantis of florida, and greg abbott of texas, have tried to prohibit schools in their states from requiring masks, calling it a personal decision for parents. president biden says science and public opinion are on his side. justin trudeau is facing a tough fight to manage even narrow victory in the snap election. with advanced ballots beginning today, public opinion