people want consistently >> tesla on friday, i think it's assured today as well. >> apple's doing great, don't listen to anyone >> jm smucker and buy foot locker on any nike weakness. the exchange with kelly evans begins right now >> hi, everyone, here's what's ahead. we're just minutes away from apple's big event, a new streaming service, a news product, and lots of celebrities all expected, we'll tell you what people are looking for and we'll walk you through the event live as it happens the bond market signal that's the big debate on wall street, what will the feds do, and how much depends on the trade deal with china fake bit coin trading, and amazon getting a boost from booze. that's all ahead we start with the markets, don chiu with the numbers. >> we're just about flat right now, we're better off than we were earlier this morning. the s&p was down 15 points early

on in the trading session. you can see here, below that 2800 level we'll keep an eye on that the dow off by about 17 points of course, a lot of focus right now still on the interest rate part of the market and what's happening with the yield curve, inversion, not inversion no matter what, we are seeing an impact over the past few days with the regional banks. can you see here, it's rolling over a bit, it's just about the best levels of the day, unchanged right now, still, we'll watch that yield curve and how it plays out with the banking type assets. one other place to watch, the stock of the day has to be apple, if only because of that big event coming up right now in this hour, where they're expected to unveil a new service, maybe a video service all ofthose things putting apple off 3/4 of 1%. a stock that has gained about 34% since the beginning of the year we'll keep an eye on all those

headlines. welcome to the exchange, everyone, i'm kelly evans, yields are on the move across the globe. the japanese ten-year yield hitting lowest levels. the u.s. ten-year treasury also sinking, looking toward 2.4% or 2.41 here janet yellin doesn't see a recession as particularly likely, but did say the u.s. economy is slowing let's drill down more on the markets from bob pa sani apple's performance, it's been a great month, a big march for big tech >> you buy in growth, that's what you're doing right now, the bulls have a real problem here kelly. weak, global growth is capping upside for the stock market. we're going into the first quarter earnings season with a different outlook from the fourth quarter symptoms were down 14% in the fourth quarter but today, look what's going on, the s&p is up almost 14% back to where it was in early december

yet the same global growth fears are still with us, the market is now much more expensive than it was three months ago but earnings growth is lower that's a problem the bulls hope now is for that elusive trade deal, but bulls also have to show that all these global growth worries are overstated that's a pretty tall order in the meantime, investors in a low growth low yield are doing the loatgical thing. both sectors hit historic highs last week, i'm talking about utilities. >> thank you very much tim cook just hitting the stage in cupertino, california, where the company has its major event underway, it's expected to announce a couple streaming services, one for traditional content, the other for news. the apple chief executive just taking the stage let's get more from julia bo o

orstin standing by >> he started it off with a kind of -- what looked like an opening credit scene from a movie. very high concept promoting apple's historical wins, such as the ipod and iphone. we saw goldman sachs ceo along with some mastercard execs they're expected to make an announcement about a credit card service. we saw the ceo of roku as well as stars and lions gate. some of hollywood's top talent expected to take the stage shortly. they signed on to make shows with apple we're expecting to see some of the big names behind the dozen plus shows and movies that apple's already announced, including steven spielberg and oprah winfrey. >> what we're looking to hear is the details of what the video service is going to look like,

what it will include, what it will cost, and how we'll really compare with everything else that's out there we're also looking to learn more about how it will integrate subscriptions to the likes of stars and showtime those will be offered for an additional fee we're expecting news about another service. the premium news service that should be built on top of the magazine app that apple bought last year. we're going to keep on listening, tim cook is talking right now. >> for more, let's bring in ed lee of the new york times. and dan iverson. ed and dan are going to be with us throughout the show, to react to any breaking headlines. >> we'll start with you, ed, what are the expectations, do we know pricing yet for the streaming service? we've only heard streaming for the news piece >> it's about $10. they're talking with hbo and stars and possibly cbs and showtime about, well, we can add your services on if they want for another $10, i think the journal reported that this morning.

what we really want to know, is there a bundled price, if i get all at once, the video, the news, maybe even apple music bundled in, maybe some icloud services, is there like a 20 or $25 price point where it's worth it for me? that will help us understand the overall strategy are they just selling individual shows? or are they trying to sell you a service that's all encompassing? >> what's your price target right now? >> we have a buy rating, $215. i think it's the most important announcement from cook and apple, really, we go back to the iphone 2007. this is -- they're playing from behind the 8 ball. 1.4 billion active devices this is the opportunity it's a fork in the road situation. this is why it's so important, 400 billion to 450 billion of the valuation in our opinion is services. >> out of 900? >> out of 900. >> half the valuation of the company is services even though

it's only about half of the revenue right now? >> the services, the profitability on that, that speaks to why apple has had this resurrection >> the profit margin for services is almost 70%, in hardware, it's half of that. a lot of that has been from app store revenues, from licensing fees goldman said, even if apple's streaming service got to 20 million subscribers that would barely increase eps by 1% next year when you model in the success of these programs, does it move the needle for apple >> we think we can get 100 million subs on the platform, that would be a potential game changer, i think it's one where you have to view it in terms of the services piece, and what this request do, this had is the fuel in the tank for services, it goes back to our view the biggest mistake they ever made was not acquiring netflix >> they still have more cash

than netflix's if they want to go that route. >> netflix is films and shows, and that sort of thing, it sounds like apple is looking to include the traditional bundle, news, sports, music. >> the 1.4 billion devices is not something to be overlooked apple is a distribution company, if you think about it. their value and future value is sewn up in, they're going to hit 3 million subscribers at some point. apple hit 50 million music subscribers, trying hard, in three years. it still comes down to how holly wants to work with apple they've been working with them now. reese witherspoon and others

have agreed to work with them. don't discount the ego in hollywood. if i can't get what i want, no matter how much you're paying me, it's not going to work out >> it's not so much the content produced it has to be great content what about the content consumers. these are people who already have a streaming subscription or two. these are people who are going to be price sensitive to adding something else to their bundle. >> that's a fair point the thing about on line subscription unlike cable, they've made it easy to turn on and off. the subscription cost probably not as much as it with were in a traditional system apple news is a free app right now, a lot of people use it because it's there it's easy. if some portion of the video is free, and the rest of it is an upsell portion, they may actually -- it may work for them >> what do you think about the

news piece of this, 9.99 a month, if it's a hit, could be a big new revenue stream for them. it's all going to depend on the economics. it sounds like they're keeping maybe 50% of it, so it sounds good for apple many how many consumers are ready to sign up with that price point. >> right now, it's about the mouse trap, can they get more content in there >> some people will shun this, in our opinion, it's part of the strategy, you want to try to get more and more consumers into a bundled service, the golden goose for them is the video streaming service, and that's going to be the focus today in cupertino. >> we did mention, goldman is there, they just partnered with this card, mastercard execs are there. stay right there, guys, let's get some breaking news >> this is an interesting drama developing with regard to nike shares i'll point to your attention what's happening with the stock, which is rebounding. the reason why is because

celebrity lawyer, michael avanti earlier tweeted out he's going to be holding a press conference to put some allegations forward against nike well, it turns out that michael avenati has been arrested. among the charges that the u.s. attorney for the southern district of new york is leveeing is that on or about march 19th of this year, michael avenatti met with attorneys for nike. and threatened to release damaging information regarding nike, if nike did not agree to make multimillion dollar payments to avenatti and this cooperating client and to make an additional $1.5 million payment to a client avenatti claimed to represent. the southern district of new york, and the u.s. attorney also say that avenatti stated if those demands were not met, i'll

take $10 billion off your client -- nike's market cap, i'm not [ expletiving around we'll keep an eye on what's going on right here. michael avenatti has been arrested, the u.s. attorney is going to make those allegations public in a conference later on today. a very big story back over to you >> that is wild. thank you very much. dom chu will continue to follow that let's get back to julia who's at the apple event. julia. >> kelly, that's right, tim cook running a sizzle reel as he unveils apple news plus. tim cook talking a lot about how apple news has become this powerhouse with over 5 billion

articles read every month. it's the number one in news app, now they're bringing magazines to apple news as we've been reporting. this is an adaptation with what we've had in tech surges as they acquired it last year. curations, saying for them, it's all about prioritizing reputation and the value of content over headlines that just garner clicks. a dig at some other services that are more click and headline driven this is going to be a source that will include the new yorker, vanity fair, rolling stone, "people" magazine, national geographic. the idea that they went from being the biggest news app, to bringing in premium magazines as well >> i can barely see tim cook when they show the footage he's in all black against the background

>> this is pretty boilerplate? >> this is timing titles, conde nast titles, they're all finding ways to get digital distribution if you're a nascant player, you want to take advantage of this even if you have to give up half of your revenues to do so, that's the bargain, that's what you're having to contend with. >> that's where the interest is, i don't know how much we'll get from the company today what we really need are the details of the breakdown >> it speaks to the strategy, they're trying to be the highway for the consumer, both on news as well as streaming they recognize their position now, they're flaunting their muscles, it comes down to what the content is going to be, we view this as a multiple step process, we need to see some of those details and that's what the streets focus on to get more

bullish. >> the new york times begged off of this, we do it right now, the concern for publishers, if you're a media business, is this going to choke me off later? >> that's why i'm surprised the wall street journal is signing up we'll get into this later. here's what else is coming up on the exchange >> ahead, the bond market is doing something it hasn't done since 2007 and it could spell trouble for the stock market the president cleared of collusion with russia. could it actually help him in making a trade deal with china and a new report suggests most bitcoin trading is actually faked. the details ahead. so with xfinity mobile

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or is this a reaction to how bad the german numbers were? we already talked about that >> i'm not so certain that some of the pmi data that came out of europe are any worse in the global existing data i think there's a lot for markets to digest. the federal reserve has changed its policy tactics completely. and will in fact buy u.s. treasuries to replace mortgage bonds for a portion of their portfolio. >> just to hold the balance sheet steady >> to do that and exchange one asset from another >> i said to a lot of people, never ignore the yield curve i do want everyone to just take note that if you've marginally improved, we've seen a rally in the u.s. treasury market the fed has taken the warning signs and changed course i don't think that's really added significantly to recession

risks from where we were before. >> it's an interesting point if you go back to the '06-'07 example, when there were all these different theories about why the yield curve was changing then shouldthe fed have stopped hiking sooner? >> it's hard to say, when you go back to '06-'07, there was a fridge ility in the financial system that we didn't know about until the financial crisis was underway knock on wood, i don't think that exists today. it's not like we're sleepwalking into a cat alcoholism like that. i know you can make a case, why it shouldn't matter as much as it used to that's pushed the long end of the curve down as much as 75 basis points without that central bank intervention, you wouldn't have the inverted yield curve today i would say, though, there's a risk of overthinking this. there's nothing magical that happens when the inversion

crosses from positive to negative, it's the flat thing of the curve that tells you things are getting worse, and the market right now believes the fed ought to be or will be easing in the next year or two >> okay. >> that's a pretty striking turnaround they only tightened back in december >> right >> that's telling us something, and i don't think it's a positive story >> let me also ask, because the big news over the weekend was the mueller report and the president's reaction to it, by saying he's heading into these talks with china the idea is, he's going to be strengthened and take a harder line what will the impact be if you were to follow that line of reasoning? >> well, it's a little tortured. people are drawing too much of a direct line between these events and the larger agenda. >> the mueller report is a political win for him. so in so far as that takes the pressure off him to get a political win on a trade deal with china, maybe he can be tougher, and it gives him a bit

of leverage. i wouldn't push that too far he's -- >> with respect to china, what he's really worried about is the economy. will the consequences of trade war with china, hang over the economy and endanger his re-election chances. in so far as that risk remains the last information we had last week is that he told his trade ambassador, get a deal >> what kind of position for growth this year, do you think >> a lot slower than 2018. the absence of tax cuts will slow growth. we probably have seen sort of the weakness front loaded in the year, we're probably sub 1% on gdp growth, and i think we can improve for that we should be planning for a much slower growth year in the absence of tax cuts. we've seen outright decline in exports this year already. so i think things like the domestic housing industry which

contracted a bit last year, told us the fed was off course. these different policy risks, some coming from abroad, the fed being on the course that it was, it's important for us to veer away from these risks on the trade front and monetary policy. thank you, great discussion. steve whiting. appreciate it. coming up, we're closely following the apple event in cupertino, and we'll bring you any big headlines from it. the white house celebrating the conclusion of the mueller investigation. for once it wasn't norovirus that made passengers on this cruise ship queasy ♪ to inspire confidence through style. ♪ i'm working to make connections of a different kind. ♪ i'm working for beauty that begins with nature. ♪ to treat every car like i treat mine. ♪ at adp we're designing a better way to work,

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(danny) jody... ...it's time to get yours! (vo) quickbooks. backing you. apple's big event in cupertino, tim cook announcing that apple news plus will be $9.99 a month. they're not just going to include all the magazines, but some newspapers, including the wall street journal and the los angeles times as well as digital subscriptio subscriptions. this is going to be all part of this apple news plus service, that's going to launchtoday, it's also going to be rolling out in canada as well as australia will be the next markets with customized recommendations as well as full access to all these magazines, it will be available for

families the whole idea it is 9.99. tim cook right now talking about apple pay, specifically announcing they're going to be used more for transit and credit cards. we're going to listen in on the big credit card announcement and be back with you >> let's get some reaction from ed lee and dan iverson >> 9.99 a month, and how loosely can i define my family that's a good deal >> they know they needed a price point that was going to be an appetizer for consumers to come on here. an important point if you -- they tried to stress that here, it's a major shot across the bough in terms of how they're going to get news here at apple versus facebook >> we knew about the price point. i think that's pretty significant. the whole promise of digital advertising is that you can

target people more specifically, charge a higher add rate i think they'll do away all together there will be advertising, but we're not going to know who we're talking to necessarily >> an interesting wrinkle. can they deliver it in a targeted way without compromising it? >> or will it be effective ultimately, they're waying the value of that against what's happening with facebook and you tube and others with all the pitfalls you face with that. >> we'll come back to you. >> let's get more breaking news, on this wild michael avenatti story today. >> what we know right now. and this is still fluid and developing, what we know right now, celebrity attorney and former stormy daniels lawyer, michael avenatti has been arrested on two different chargcharge s stemming from two defrn jurisdictions. allegations coming from the u.s. attorney out in l.a., but also new york we told you about new york where

he is allegedly responsible for trying to extort money from nike the other criminal complaint involves allegations that he embezzled clients money in order to pay the expenses and debts of his coffee business and law firm also that he used phony tax returns as a way to document stuff to get illegal or millions of dollars worth of loans illeg illegally. we have two different coasts, new york and l.a., u.s. attorneys from either side, with two different sets of charges against michael avenatti for right now, we do know that he has been arrested with regard to the criminal complaint coming out of new york. let's just recap it here, he's allegedly -- he was involved in trying to extort nike for millions of dollars, in it saying that he was threatening to take billions of dollars off of nike's market cap if they

were not to comply so this is what we know now. we're waiting for a press conference from los angeles with regard to those charges, we're also seeking more color on the new york charges as well but safe to say that it's not a good day for michael avenatti. when it rains it pours, we will call your attention to what's happening with nike, it's the publicly traded stock at the center of this, nike shares are moving to the down side. you see the intravolatility of these headlines. a very interesting soap opera developing with regard to two jurisdictions in the united states >> as he 2w50e9ed he's going to have a major announcement about that tomorrow. sue herera has our news update, sue? >> it's a busy news day, kelly, as you know. here's what's happening at this hour white house senior counselor kellyanne conway lashing out at the media, in the wake of the

mueller report that exonerated trump of collusion >> it gets my goat that we're doing grade things in that building behind you and you are not covering, because you had to cover collusion, indictment, nonsense there are people out there who are relying on you to help us tell them what we're doing. >> american airlines says it's extending flight cancellations as a result of the grounding of boeing's 737 maxaire craft fleet. the airline which has two dozen of those planes says they will be cancelling 90 flights a day through april 24th johnny manziel made his appearance at the alliance of american league football he debuted as a member of the memphis express. he was under center for three drives in the second and third quarters of the memphis 31 to 25 win over the birmingham iron. you are up to date, that's

the news update, kelly, back to you. >> don't go anywhere, there's a lot more ahead still ahead on the exchange >> coming up, is peak streaming here are tesla's sales slumping plus, a cruise ship nightmare ends and your late night glass of ttne may be helping amazon's boom line. it's all ahead in rapid fire

welcome back i'm julia boorstin in cupertino, california apple just announcing apple card, it's the next generation digital credit card done in conjunction with mastercard. they're helping users achieve the healthier financial life also saying that they will have lower interest rates and no penalty interest fees. also unveiling something called daily cash any time you would pay using your apple card, you would get 2% of all your purchases if you're buying something from an apple store, you would get 3%

if it's from apple trying to incentivize people to use this service saying this is a private, this is secure, because they're working with all these different partners and this is all designed to give people information about how and where they're spending we're going to continue to listen and bring you guys more >> let's talk more about that and the rest of our rapid fire topics here with their takes are john ford, contessa brewer and bill griffith i think it makes a lot of sense, now that people are more integrated with apple pay. the -- which card you're using is less and less relevant except with regard to the rewards >> they have huge rewards. 2% cash back, 3% on apple stuff, is that huge >> it depends on what kind of card you have access to. >> the people who are savvy on this thing are very savvy, if you travel a lot if you eat out a lot

this is going to create competition in the space, it will be interesting to see how deep apple goes into that competition, they're going to have to react if they want to play -- i think a danger for apple in this whole services game, they're rolling out a lot of services. you have the card, the music, the video, you got the gaming you got the print. they used to be a company about simplicity, are they going to be able to tell a unified services story. >> if you're an apple user, you tend to stick with the apple brand. everything integrates seamlessly we talked to timothy o'shea who said, they can do all these services that they want. it cannot compensate for what they're seeing in lagging iphone sales. >> mastercard sales are higher. >> a lot of this is going to hang on the apple brand itself we all know, they're late to the game for a lot of these services that are already out there

so will people be attracted to a lot of this because it is part of the apple universe at this time >> pricing will be important, and you'll be discussing that to some degree the news aggregation. i don't know -- >> the pricing for the streaming bundle is going to be the real key. don't you agree? >> i agree haven't we already established that people tend to go to a particular streaming service for a particular show or movie that's available at that point >> and netflix won't be on apple. the only way apple could be the super aggregator -- one of the channels is netflix if you have it >> the thingis, have you comcast offering this over the top box for $5 a month it's a subscriber fee you would pay on top of having the router. there's a lot of competition in this space a lot of tv's come as smart tv's, you don't even need that special apple tv box or roku or the fire stick can you get it through your tv >> we're getting to the point

now where if you want netflix, amazon prime, you want hulu, now apple, whatever they're going to call, the prime plus or whatever it's going to be called. it's getting expensive >> it adds up, you have to have internet service by all that >> we are owned by comcast, that was not a comcast plug >> you can get netflix on apple. how is this going to integrate with everything else you can integrate. when you speak via siri to your apple tv, you want to watch something on youtube how will it pop open on this apple service. they have a lot of integration they're going to have to do, with all of these services if you're paying for your apple card with all of these services. what's the benefit to the user >> amazon has been on fire about their fire tv, saying this is one thing it's doing seamlessly, letting you search in one place for all of this. they got there first

ahead of this event, he thinks there's space for two or three streaming services, because netflix got there first, that will be one of them. who are the other two big players then >> they still have a chance. that's why i'm interested to hear what they have to say about price. >> good for consumers by the way. >> it's just, whoever has the cheapest. >> talk about tesla today. rbc capital markets is cutting its delivery forecast to $210 to 245. this after a new york times report on new car registrations. it got quite a lot of attention it would obviously indicate slowing shares. >> how many people were buying the teslas because of the tax credits that were available. and how much tesla is going to have to charge to be profitable. they want that goal to be --

crank out $35,000. but so far the average selling price has been $53,000 can they get down to $35,000 and still make a profit? this is a critical time right now for them >> tesla reminds me a lot of bit coin and block shame you can say i believe in the product, i'm not sure about the stock. it's hard to know where to value this thing, because there are so many different factors you have to consider. elon musk and the sec. elon musk and the various things that he tweets even aside from the sec and how that ends up influencing the stock. that shifts, it seems from week to week. so i think no one disputes that tesla has been visionary when it comes to project, when it comes to electric vehicles batteries, et cetera, et cetera, but how exactly you invest in that and what's going to happen with the company itself. >> they need a ceo

>> or coo, tim cook. he needs his own tim cook. hey, steve jobs needed a tim cook >> tim tesla >> how about this, hundreds of people were evacuated from a cruise shift after the viking sky hit rough weather saturday high winds and 26 foot waves the ship was able to dock in norway, more than 20 people suffered injuries. one of them remains in critical condition. there was footage of the way this shift was listing back and forth, and people and objects kind of flying from side to side >> i mean, if a picture is worth 1,000 words, video is worth a million. this is a problem not just for the cruise line, but the cruise industry >> the shares haven't budged you can throw norovirus, 26 foot waves and people still keep cruising >> what happens -- i mean, you're -- i'm in the cruise market, i've never cruised

before, i got little kids, i'm thinking about cruising and looking at that, gives me a tummy ache >> this is a cruise disaster some people get sick and they get saved by a helicopter. plane casters don't look like this >> thank goodness this cruise disaster worked out this way it could have been pretty ugly. >> when is the last time we had a story like that? >> you have the video that goes along with it. >> probably the italian -- wasn't it the italian cruise ship >> yes, 2012 that could have happened this time, where people were injured much worse than they were in this one >> what if you're one of the people that's on the ship watching the helicopters lifting everyone else, i guess i'll just stay here and take my chances. >> i don't want to know how it works. i look at that, and we're out of time for our favorite story of the day, which was about how people drunk shop on amazon.

>> how do they determine they found 2100 people who admitted they drink shop >> they were drunk when they took the survey. >> boy did we have pithy comments prepared for that one >> you can bring it back tomorrow >> even though we won't be back. >> thank you all very much a lot of news today. john ford, contessa brewer and bill griffith. shares of apple are down a little over a half a%. we're going to go back out to cuber tino for the lesatt on this event when the exchange comes right back no matter where you are in life or what your dreams entail,

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that's a potential game changer. major shot across the bough at traditional gaming publishers. look at google last week, this is big, this is something investors are going to be focused on from a gaming platform perspective, that's a bit of a wild card investors were hoping to see, but now we got it. >> i agree, i think this is the biggest thing they've announce ed no one really owns this space. this is not a place where they're trying to play catchup, they're trying to lead and looking at it now, i think there's a lot of potential if it can work on your phone the way they want it to work, the likeness of the programming that could be the game changer, that could make a difference. >> let's get to julia boorstin. >> we're just waiting for a price for apple arcade this is going to be a new video game service, it's going to include 100 games you're going to be able to play across mobil,

desktop and living room. and you'll be able to play offline. you're not going to have to be connected to the internet to play these games they're working with big game creators including, sega as well as walt disney company the idea is, these are games you're not going to be able to access anywhere else, only through the subscription service. as to how much it will cost we should learn that any second now, ideas that is personalized, recommendations for you and family sharing so pretty remarkable here how many different types of services that apple has announced today, the credit card news, games, we haven't even gotten to the video service yet. >> we'll check back in with you. google just announced their gaming platform so to speak. now, apple's out with its own, can you play it offline, it's going to offer exclusivity, what does it need to do to set itself apart. >> gaming all together is incredibly competitive as you

point out, this thing about being able to play high intensity video games on an internet connection, on a wifi connection, that's still -- no one really crack eed the code on this if that works, i think that will get people to come into it >> what kind of pricing do you think is key here. >> i think pricing is sort of in that per month, single digit, in terms of news side this is about attracting consumers to this platform when you look at apple, they can blow unite this service positively is on the gaming side you saw google last week, if you look at the content perspective, this is something that could have a ripple effect across the industry right now i think a pin could drop if you were in ea or activision headquarters. straight ahead, the fbi arresting stormy daniels attorney michael avenatti, after he was tied to charges in two

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breaking news on celebrity lawyer michael avenatti arrested for attempting to extort $27 million from nike and embezzling to pay personal expenses and defrauding a bank in mississippi. joining us on the cnbc news line is white collar crime lawyer and michelle caruso-cabrera. usually you're following corrupt international regimes but right now, what's your focus >> i read one of the indictments about him trying to extort nike and michael avenatti is very foul mouthed according to this indictment and we're going to probably hear everything he had to say because the attorney said all the conversations are recorded where he explicitly said things to nike and their attorneys like have you ever

heard the of your client in your hand to take market cap off of them uses the f word repeatedly and demands more than $22 million to hide what he says is evidence allegedly paying the families of top high school basketball >> we'll get to you in a moment. first go to julia boorstin reporting on this with latest big headlines there. julia? >> reporter: we're getting some details about this long anticipated apple tv service announcing channels. an idea you'll be able to subscribe to hbo, showtime, starz, cbs, and apple tv will also integrate those paid tv packages so such as directv, charter spec spectrum, so if you pay for a bundle of television, you'll be able to access it through apple tv both on your television, on any device on stage, they're talking about

how they'll make everything searchable, easier to navigate so you're integrating all of your different tv services whether you want to get a bundle or tv channels a la carte. back to you. >> let's bounce this off of ed and dan back there we'll actually wait and do that in just a moment "power lunch" coming up in a moment but let's finish the conversation here. just discussing the michael avenatti news today which is shockin shocki shocking michelle was discussing that how significant are these charges on two different coasts now against michael avenatti >> thank you for having me these charges are very significant. this is clearly not the way to present the whistle blower client there are proper ways to present a whistle blower claim you could take the client down to the security and exchange, a whole process to do this client can get paid money, if it pans out don't just walk into the company, throw around the f

word, throw around claims like i want $20 million or whatever the claim was and say, then i'll shut up. that's over the top. and so these are very serious and particularly, since they're on tape, it's hard for mr. avenatti to dispute these, if you recall, in the case of hedge fund mogul what convicted him was not the other evidence but the tapes >> michelle, ironically, that's the same tactic used in the college scandal with regard to college admissions where we just read about how wiretap was effectively used. >> what i'm curious about with mr. avenatti explicit in the indictment that the recordings were consensual, but is that the consent of the person who did the recording, a one person state rule or two party state rule did avenatti know he was being recorded i got to assume he didn't know, that he would have been so dumb. >> quick word to you, tom.

>> one would certainly hope he didn't know he was being recorded but in some states, that's a violation of state law. >> absolutely. yeah it's one we're well versed thank you both "power lunch" is going to take things over. i'll join tyler. it begins right now. so, so much to talk about. kelly, see you in a moment welcome to "power lunch. i'm tyler mathisen new at 2:00 today, apple takes its boldest step yet away from hardware and into services jumping with both feet unveiling a new tv service what does it state for apple and its rivals wild story in the last hour, we've been talking about michael avenatti, the lawyer that stormy daniels among others charged with extorting nike out of millions of dollars this gnarly one ahead. the great rate