gear up for great. >>> apple music's retention rate is in question today. industry research firm music watch is finding that almost half of the people who tried apple music during the trial period have left the service, but apple says that's not right. the survey is not accurate. saying just closer to 20ports have left. and weighing in on this is apple's former chief evangelist guy kawasaki, guy, thanks for joining us. we had a guest earlier say that no matter which number you pick, the overall number of people trying apple music and sticking with it isn't that impressive. based on what one would have hoped apple could have done. what's your take? >> no one is more skeptical about what apple says. but if you look at the numbers, well the first thing you need to do is question the methodology. exactly how did they find these people? how did they ask them? is it a subset of people who are willing to answer the phone at 7:00 a.m. or answer an email? surely the consulting service didn't get them from apple. did they know what they were asked? if you ask someone,

dre gives apple music a trial run.lus, is the amazon model a harbinger for workplaces of the futures? all of that is ahead on bloomberg west. first up to a story we are watching right now. the irs data breach. it is getting much bigger than we realized. we are now learning of an additional 220,000 possible victims and the total number of taxpayers to 334,000. let's go to washington dc and bloomberg news reported jordan roberts. what can you tell us about this new breach? it seems to be more focused. jordan: before and thing to remember is that while we are not talking huge numbers, 300, 400,000 people at this point, there were highly targeted attacks and and the reason they were able to get that was because they knew about them anyway. they believed they could get a big refund from them if they committed tax refund fraud. matt: this is not a case of them going through each person will account. -- individual account. they have reached the irs system at large. jordan: but what they were doing is they came in over the a l

matt: we are showing video of you when you took apple music for a test run. do you think it is doing so far? there are so many streaming music services so far. but i sort of feel like once you have spotify there is no real reason to get anything else unless you are a dr. dre diehard. >> getting people to switch over is the biggest point for apple right now. people get set in their ways, everything is the same price, the same catalog, it is hard to get someone to move over. spotify has paid subscribers versus apple. they are an established player. for apple to move out of this trail and expand, they will take some time. matt: set us up for the september apple show. what are we going to see? new phone, new watch? >> the biggest thing is going to be the phone. a lot of attention gets put on some of the new stuff that apple gets introduced, whether it is a watch or television, the business all comes back to the iphone. as the iphone goes, so goes the business. if they can continue to increase sales of that product, the company and shareholders are going to contin

remember, earlier this month apple said 11 million people had signed up for apple music. the question of course is how many of those users apple is going to convert into paying subscribers once this free trial period ends? mark mulligan, a music industry analyst, says apple could have some 8 million paying subscribers by year end. if that's true that means apple would already be the number 2 streaming subscription service provider behind spotify. melissa, back to you. >> and josh, give us the latest on apple tv at this point. >> so tim cook, melissa, knows besides your core, your office, you probably spent most of your time on that couch in your living room and that's why apple tv is so important. mark german of 9 to 5-5 mac was on cnbc this morning. german is saying a new apple tv will be unveiled at the company's event in september. he said that new set-top box is going to be slimmer, include support for siri, more storage, a faster processor. apple has sold 25 million apple tvs. piper's gene munster says the apple tv in and of itself isn't going to make a big financial

one direction has announced as one of the performers apple music festival in london. ferrell is the other major -- pharrell. with the company's new system it is just the apple music festival. people in the u.s. will watch live performances. rihanna shut down rumors she's daling matt barnes. he said the two of them are just passed the crush stage and feeling things out. in response she posted insulting hashtags. she's not into you at all. never met you and defamation of character. >> not looking forward to the one direction of concert. my daughter wants to go to that that. >>> a rescue at yosemite national park. what prompted rangers to ask the chp for help. >>> police involved in a second deadly shooting in 24 hours. the connection between the two men shot by police. >>> we're looking at the east bay commute. traffic is doing well on highway 4, you come up to the kilo pass grade. we'll tell you more. >>> the fog is back. it's a cooler pattern. we'll have the cooler tuesday temp. >>> welcome back to mornings on 2 i'm brian flores. >> good morning, i'm pam cook. thank y

i mean i think on the one hand after apple music, i'm not sure apple is ready to soft tv problem. cook is talking about how much of a mess tv is i look at apple music. there's some good stuff in there, there's the interface is all mixed up. it's got the same problem that traditional television has. on the one hand, re/code said this very same thing -- about the delays in the live tv service months ago. peter qafka over there. and i think the sticking point, when you break up a bundle, do you end up paying more is a real issue. when it came to music you had piracy on the one hand frightening content providers into offering their content for less. in this era of tv you don't have the same kind of leverage. look at the prices being paid for "game of thrones," netflix is dishing out for a successful series. i don't see what's going to pull people apple's way. >> you raise a good point. the music, music content creators had an advantage in offering their content for lower prices, but in tv it feels like there's starting ton be a existing economic framework that apple wouldn't be able t

emily: what about apple music? there is reports you are considering opening investigation into apple music. do you believe it is anti-competitive and if so how? terrell: i cannot comment on any pending cases. what is most concerning to you as the person running the ftc? terrell: i spent some time this morning in the village where hackers are looking at a bunch of devices consumers have from television to refrigerators and baby monitors. we study a growing sector that is bringing a lot of innovation to consumers. a wide range of practices. that is concerning to me as a consumer and federal trade commissioner. i think we need to have better security practices around these devices. what i'm seeing at this conference is a lot of hackers who know how to break into consumers' home networks using these devices. emily: all right, thank you so much for joining us. well, they may be hackers at def con but their future employers have been close by. everyone from snapchat to the u.s. government are here hoping to sign up talen

i asked apple music to explain the calculations of royalties for the trial period.disclosed that only to copyright owners, that is the labels. we've reached out to apple for comment and are awaiting a response. he uses sam smith as an example. if he accounts for 5% of total revenue at spotify, spotify is not obligated to pay him exactly that. that's byrne's complaint. >> it looks like a racket. and david byrne lays it out am he has the copyrights, has a label, and still couldn't get the straight story from the distributor. the rules that are in place now were in place back when radio and the things that are streaming are based on answ ancillary. we're heading in that direction, so somebody's got to protect the artist. >> in reading this piece, i thought to myself, welcome. welcome to my world as well. anybody who sells content, digital media, you really have no idea how you're getting paid and what you're getting paid. with every major platform, when they calculate the cpms, if you get asked why am i getting this? you get told that, you know, that's not for you to k

best the first time we've seen some of those numbers from apple music top how is apple music doing andou use it if you already have spotify? is it a win market? there's so much to talk about. alix: thank you so much, matt miller. find out more with everything going on on "bloomberg west" coming up later today. road isp, clara and seeing withdraws a 40% of assets after losses. we will be covering that, next. ♪ alix: bloomberg news has learned that investors in claren road were asked to pull about 41% in assets. the firm is owned by the carlyle group which is facing $2 billion in withdraw that the end of the quarter. in terms of this hedge fund, what went wrong? guest: some wrong that. energy, the greek debt crisis, financials, claren road started in 2005 and had a string of up years with great performance. bets on fannie mae and ready mac started to decline and these other more macro that's an it's on energy have led to declines this year. alix: is that unique to claren road, or is that pervasive in all hedge funds right now? guest: hedge funds are up by about .5% this year. what is int

y gives you a 50 percent discount for each additional person and apple music lets six people share anount for 14.9 9a movement for fans who spent years building up their libraries they all let you up load your music to the app to play those files with the streaming options. with google play music you can create play list was both kinds and down led them tour device for off line streaming. in san francisco i'm sharon profis for cbs news. >>> a close call in the skies coming up next on "eyewitness news" a commercial air liner coming in for a landing almost collides with a flying object that appeared to be a drone. >>> up next we're hearing from the pilots reaction, plus a strange sight in one neighborhood. we will hear from the man who parks a plane in the since 1961, pearle vision has provided the neighborhood with expert eye care. that was dr. stanley pearle's vision and we still proudly carry on his legacy. today, doctors like lisa hamilton perform eye exams that can help detect diabetes. because we care for you... and your eyes. this is genuine eye care in your neighborhood. this is

remember "compton ""is excuse city of apple music and itunes, a big open for universal, our parent. e has his eyes open the future of music and tech. >> heap experience in music, when he says that he know what is going on. he is reacting to the long -- you know, long, low, slide of music is debundling of the album, a hit track here and there, but hit albums and fewer and fewer, just means that profits are smaller and smaller. >> i wish he told us how much money dr. dre made off of those 25 million streams or was it just promotion for the movie, which we know did very well? i mean, was the -- >> a nice tie-n >> that profitable, 25 million streams, we know some people will say, some artists have said, hey, i get millions and millions of streams and i get pennies, something tells me dr. dre doesn't go for that >> he probably got a special deal with apple one way or the other. the other thing to think about, a lot of these artists what they want ultimately is for people to buy into these music subscription services, spotify really started that the bulk of their listeners are listening to

and the big thing is music and apple clearly with apple music is going to continue to increase thoseillion subscribers in the years ahead. stuart: but they can't make as much money out of apple music as they could with a break through new product and the watch does not appear to be at this point the breakthrough new product. >> i would agree with that. though, i will say one of the things that i think makes people think that apple is boring is the fact that their m and dad is now using apple. but that's a good thing for apple. the more they can get into corporate organizations where they're switching it out for blackberries, that's something that makes them a little bit more boring, but a little bit more mainstream and a lot more money in the years ahead. stuart: i just wonder if the whole idea of wearables is that big of a deal? i'm beginning to suspect it's not. and last word to you. >> i don't know if i agree with that, stuart, we'll have to see. but, though, they didn't release the apple watch numbers, they'll have a lot of momentum. and, again, i'm one of the fitbit wearers and

so we did a study when apple music came out. we're the largest student network in the world. tudents were likely to take music just because it was apple. >> i wonder if beats one changed a lot of that. it's been getting praise from critical music fans who say this global radio station that a lot of people including myself are making fun of, before it launched, they've done a good job with it. >> they've done a spectacular job. and their ceo used to work with us at yahoo, couldn't be more proud of them. but these are not things that change people's behavior. when you're dealing with the younger generation, they're happy with spotify believe it or not. more people use pandora than spotify on the free side. but more people use spotify than pandora on the paying side. >> we want to get to alibaba stories but first we have breaking news. >> a u.s. judge is rejecting a class action settlement between american express and some merchants over swipe fees. a multibillion-dollar settlement that involved visa and mastercard. right now the ruling appears to only affect american express. th

if you have any apple products, chances are you already have music, it counts your steps, et cetera, era. >> that's right. what we're talking about is the long-term growth of the company. where are they going to go given apple is in the space and so many others in the space. deirdre: speaking of apple, apple music has 11 million trial users. i feel like there should be balloons. 11 million. just to put that in context for people who don't follow as closely as we are, that's halfway home to spotify and took a decade. to your point, apple is not exactly misplaceed. >> they have a big inplace customer base, and any time they put out something new, they have a humongous universe of iphone users and ipad users that are going to hook up to it for lack of a better option. deirdre: three month trial period started june 30th. for myself, i have an apple product, they have my credit card fit. don't get on there and say i don't get apple music, i'm going to get apple music. >> people are going to use it by default. the question is who keeps using the product after you're getting charged for it?

. >>> new report is critical of apple's new music. find out what early adopters say. nextgen gauge gettings with their whistles could be becoming distracting. jeff flock has a driver distraction simulator how ford engineer something trying to build a safer, less distracting ride. ♪ at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. or building the best houses in town. or becoming the next highly-unlikely dotcom superstar. and us, we'll be right there with you, helping with the questions you need answered to get your brand new business started. we're legalzoom and we've already partnered with over a million new business owners to do just that. check us out today to see how you can become one of them. legalzoom. legal help is here. usaa makes me feel like i'm a car buying expert in no time at all. there was no stress. it was in and out. if i buy a car through usaa, i know

can't say that's happening with apple music. can't say that's happening with apple watch. what happened with the apple car? or apple tv. i don't know. >> thank you lauren simonetti good to see you. >> you can catch lauren every weekday morning on fbnam on fox business network and not sure where to find fox business in your area go to fox business.com/-- >> channel finder on it in the united states. >> the story of the day. formaller giants and jets receiver plex koa is facing tax e charges and working out a deal. >> pleaded not guilty to wowful failuring to issue a bad check, or electronic funds transfer. his attorney wouldn't say whether a deal would keep a 38-year-old out of jail. back in 2008, he spent time behind bars, after he accidentally shot himself in the leg at a nightclub while playing for the giants. we'll keep you updated on that story. diswhrosht robert: 6:40 mike has a quick check of the forecast. good morning. mike: getting a little bit different outside than what we had last few days. first of all we have partly cloudy skies opposed to mostly sunny skies.

and watching apple, apple's streaming service may not be the is success that they're hoping for. research from music% of people who signed up for the free trial has stopped using that service. apple's offering three months of apple music for free. after that, the price goes up to $10 a month. well, let's take a look at the stock. the report really not hurting the stock to be honest with you. down about 1%, but apple used to be a lot higher than that we should say. and american airlines is going to offer the first nonstop flight to cuba. the flight from los angeles to havana is going to begin this december. check out shares of american airlines right now. look at that, aal is the ticker, stuart would say dead flat and it is his show, so we'll see dead flat. and donald trump calling to end birthright citizenship, which grants citizenship to anyone born in the united states. strong praise and criticism from his opponents. blake berman joins us now from dc on a very controversial statement by mr. trump. blake. >> indeed, cheryl. jeb bush said this specific part of donald trump's plan would require a cha

with rival spot sticking with rival spot a fight in pandora instead. 11% of users say they use apple musicpandora users are. expect to see a massive marketing campaign by apple executives. responding to this survey says only 21% from us so much less have opted out about the music since the launch. looking at apple shares in the premarket come as a relief yesterday married to the downside around $116 per share. sandra: thank you, lauren. intel getting into reality tv. "the wall street journal" reported the chip maker is teaming up with mark burnett, the producer who created reality shows like survivor and time warner's turner broadcasting. the program has the title america the greatest makers and get do-it-yourselfers to turn chips and other components into gadgets. contestants compete for a $1 million prize. the show is due to appear on tv and other media channels next year. lauren: interesting. coming up, a defiant hillary clinton. >> we turned over everything that was work related. every single thing. lauren: the front runner dismissing criticism of her use of a private e-mail server. a

apple music includes a free internet music station and artists to upload songs and videos for fans. >>> some philadelphia police officers retreated to a special lunch today for a group of kids that wanted to say thanks, the action cam was in hunting park as the teenagers reaped a meal for officers in the 21st district. the cooking or our heroes luncheon was by the summer camp and kids had to research and budget for and buy the ingredientses for today's feast. >> terrific. up next, the accuweather forecast. >>> and the clouds are moving in over the center city skyline, cecily tynan has the details when we come right back. (plays throughout) ♪ sometimes, at last doesn't happen at first. ♪ ♪ your dad just kissed my mom. ♪ turning two worlds into one takes love. ♪ helping protect that world takes state farm. >>> time for accuweather at the "action news" big board. we have a much needed break. >> low humidity and temperatures in the 80s and we started the day with loads of sunshine but live on sky 6 hd philadelphia international airport you'll notice the veil of clouds and they are pushing

music from them. this is the shortage of them. >> the jay-z backed tidal service well-established potty foy and recent launched apple moose ache few of the many brands. sthoat show the according to recent survey by music industry research company music watch. apple service is having a bit of trouble getting out of the gates and survey finding half of the trial users have given up on the service not necessarily surprising says henry casey a staff writer at the guide and laptop. >> if 48% of the users are not using apple music on a dallies about sis any here that shows how hard it is to create new habits. >> p a pell is dy putting the survey saying 2% have presidented out since the service went live in late june. >> i don't remember the last time. >> in 20014, americans streamed marley 164 billion songs so it is crear there is room for healthy comes between services. >> i already had spotify so if it is not broke, don't fix. >> as apple comes to the end of the three-month trial period this september. people will have to did he side t want to start paying the company will look ry have to offer exclusive content or a ma

they claim nearly half that use it left apple music left after the trial but a spokesperson for appleays that number is only about 21%. >> apple music went living on june 30 and music watch reports 64% of those who are doing the trials plan to stick with them and naturally subscribe, but the rest say they'll let their trial expire. apple reported 11 million people had signed up for the service. >> apple watch has had a big influence on people. according to the report, it showed 19% of people who owned the watch tried out that paid service and showed 78% of the users used that service regularly. it surveyed 1,000 users for this. >>> what do you order for lunch? salad? a wrap? the most popular lunch item in america, a burger.. >> nearly 9 billion hamburgers were served between july of 2014 and june of this year and the group behind the study says casual dining i up -- [indiscernible] -- >> i rarely eat out and when i do, i go for it. >> i had one last night in danville, and it was delicious. >> good. >>> 100 years old and it's still making its away around the town, the model t taking a

music streaming service. while only 11% of ios users even tried it. appleim, stating that 79% of users who have signed up for apple music still using the service. so there. starbucks with a new drink. beer and wine. it will be served in 70 starbucks locations across the u.s. some craft beers rin concluded on the menu. starbucks hopes to offering 2,000 of 14,000 stores having alcohol i think that is within the next five years. >>> take a look at world's smallest drone. it is not even as tall as a quarter. standing on its edge. whoa. that is tiny. the drone is available for preorders now and will start shipping end of september, with a cost of $35. just hope your dog or cat doesn't eat it. there you go. david: 35 bucks is worth it. hypocrite or savvy investor? george soros has been demonizing fossil fuels for year, making a total about face. the 85-year-old billionaire hedge fund manager investing in two beaten down coal stocks, peabody and arch coal. let's bring in the panel. jonathan hoenig of capitalist pig hedge fund. julie roginsky, democratic strategist

and that is the watch and it's also apple music. and i've used both of them and i think a lot of the sentiment out there at least in the financial press and the people who are reviewing it, it's not particularly that positive. so we know that there's some catalysts coming up. we know there's going to be an iphone 6s, probably a couple different iterations. there's talk about a revamped tv service. i think investors want to get excited about products. and i'm not certain that the 6s product is going to be that new and innovative. i think it can continue this runway for the upgrade cycle but i'm not sure it's going to be innovative. >> what is different? since that most recent high of july 20th we knew the iwatch was -- >> i don't know, dan. since when is apple music and the iwatch supposed to move the need snl one of the things we say it's a hardware company. if you figure last quarter you had 10% of the installed base, got the new iphone, where are we left? where is china in terms of demand? i think it comes down there there's been

turning to apple music, eddy telling me apple has signed up 11 million members now to apple music.ow many of those 11 million can they convert to paying subscribers once this free trial month ends. eddy saying listen the feedback in his words has been overwhelmingly positive. he's excited about the numbers. i did ask him about some of the complaints we've heard about the functionality of the service. duplicate playlists and the like. eddy telling me we certainly had some bugs, he said, we had been really seeing updates very fast, we are addressing the issues as fast as we can. of course all this news coming as apple's stock has been under pressure. the big concerns for investors, can they grow iphone shipments in q1 in 2016 and whether that china business really does continue to boom. eddy cue this morning sounding a real note of optimism and confidence. guys, back to you. >> yeah, that is the key thing that we're watching when it comes to the iphone. the music is interesting and certainly adds to the whole ecochamber, whatever they call it, the halo effect. thanks, josh. >>> take

so apple music launched for free. it will be $10 a month starting in october. it launched june 30th for fry. apple boasted, we have 11 million users this is awesome. yeah, 11 million users, but a new report from music watch says only half of them are actually using the site. they signed up to try it out because it is free. they're not actually using it. when october runs around you have to pay for it, will they pay to use apple music? the thinking is no. this is great news for spotify, great news for pandora. not so much for apple. apple responded to the music watch report, they say look like 20% of users opted out, not 50% so they're saying numbers look much better. i bet you see a huge campaign as we push closer to the october period where you have to start paying by the big guys, dr. dre, jimmy iovine, touting apple music to say, pay the. >> plus side, rosanna is wearing apple watch every single day. >> i like it. >> i hear is a bit of a bust. >> i like it. you have to charge it every day. so that's problem. >> at night? >> yeah. a lot of people in the music

. >> pop music star taylor swift is explaining how and why she wrote the famous june letter complaining of the plan of apple to stream music without paying royalties to the writers. she said she thought it was unfair she woke up at 4:00 in the morning and wrote the letter. the sting giant was not going to pay royalties during the three month trial period for the new apple music service but apple reversed course in 24 hours of receiving swift's let and bread to pay royalties even during the trial. >> encouraging health news for women. a study shows the pill has prevented 200,000 cases of cancer of the uterus in a decade. for every five years of taking the bill a woman lowers of risk of a quarter because it tricks the body thinking it is pregnant and lowers the estrogen level which continues after a woman stops taking the pill. the study in the journal. >> brown water is run through the pipes of a down and oklahoma residents are toll it is "safe." >> residents say they are afraid of the water and the city working to fix the problem. officials say the color has to do with a comb reaction in the lake they use a

. ♪ >>> music to the massings. appleat more than 11 million people have already signed up for a trial of its knew music streams service, but that number could drop. apple music started offering a free three-month membership when it launched on june 30th. but after 90 days that membership will cost $10 a month. spotfy has more than 20 million paying subscribers. >>> competers from around the world are in seattle this week to play video games. allan schauffler reports. >> reporter: yes, it's just a game, and no, it's not just a game. opening ceremony hula, rock star status for players, this has a major league feel. in their sky box the team from complexity gaming watches a first round match. the international is their best chance for a big payday. >> there is so much on the line. and it's just insane. it's really a high. >> these 20 somethings live and train together. playing is their full-time job, and they win early. >> they take a 2-0. >> reporter: the money is very real. super bowl winners earn $97,000 this year. nba c

dre gives apple music a trial run. plus, is the amazon model a harbinger workplaces of the futures? all of that is ahead on bloomberg

in because the event was being streamed live through title, and drake has an exclusive deal with apple music said to be worth about $19 million. now, sources say the tech giant threatened to sue for $20 million if the rapper appeared or if the his music was being streamed. title took to twitter this response to the lawsuit threat saying apple is interfering with artistry, sorry for big brother's inconvenience. we'll keep you updated. >>> still have a lot more to tell you about, coming up it was out with the old and in with the new in jersey city, a building implosion that gave residents a very early wake-up call. >>> and the nypd stepping up efforts to get sip nettic marijuana off the streets. how to local officials want the feds to give them a hand. >>> halloween's still months away, but we'll show you some of the costumes already causing quite a fuss. >> fox 5 sits down with christian mcbride who shares his musical journey in tonight's h oh, stay on that one. [changes channel] sometimes it's hard to catch all your favorite shows. you're killing me, dad. give me that, please. with time warn

apple music brought in 11 million customers since launching. it remains free until september. once the free trial runs out subscribers will be charged $10 for the service. spotify has 20 million paying customers. apple is hoping to knock them from its perch. and lower crude prices are hitting the oil exporters. saudi arabia plans to returned to the bond market. the sharp decline has rom pacifica, this is democracy now! >> a short time ago, a plane dropped one bomb on hiroshima and destroyed its usefulness to the enemy. that bomb has more power than 20,000 tons of tnt. amy: it was 70 years ago today at 8:15 in the morning when the u.s. dropped the world's first atomic bomb on the japanese city of hiroshima.

steve jobs would have been proud of apple music's quick start.at would steve jobs k about his life story turned into a musical? details on that. oh, yeah, jazz hands. get ready for that. and the man who wants to be the baby buffett has shed tears over herbalife, tears over target investment. charlie gasparino says he now has another reason to cry. he breaks it down, next. bill ackman's huge investment to be like buffett. ♪ ♪ when a moment spontaneously turns romantic, why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not

apple music debuted last monday. it kind of tanked with beads and now their repurposing it as apple music. google is going to release something as well. you've got spot if i and many other players in the space. it's about 2008 in the interest of the technologists and the rights holder have become aligned. the user was supposed to be disempowered person in the early era of personal computing is now seen as a person from whom you extract value so they've sort of become your customer. >> the music companies are sharing a lot less of the profits. in researching this book did you interview someone from the industry who regretted that they didn't have online purchasing options available #. >> the guy i interviewed the most was doug morris. there's a big three of the music industry and that's sony and time warner. he never expressed any such regret we kept trying to debut these and it would fail. they were very badly design and they generated almost no revenue. they put everything on an itunes store and it didn't really sol

dre gives apple music a trial run.e amazon model a harbinger for workplaces of the futures? all of that is ahead on bloomberg west. first up to a story we are watching right now.

there you go. >>> apple premiered its music streaming service one month ago. of apple, it's been a rocky month for the tech giant until today. up just a little bit, three cents to be exact. we'll bring you all the best nose r news and the worse o'news on all things apple straight ahead on "power lunch." 40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town the kids are feeling safer whi

. >>> just a month after launch, apple says it's locked up 11 million trial members for apple music and that's two million of those that have signed up for the family plan at $14.99 a month. >>> and here is a very own hover board and the hover board uses magnetic levitation technology magnetic track. that is so cool. >>> and just ahead, the vow, 18 time olympic gold medalist, that he's making before the games. sports [ horn honks melody ] well, well. if it isn't the belle of the ball. gentlemen. you look well. what's new, flo? well, a name your price tool went missing last week. name your what, now? it gives you coverage options based on your budget. i just hope whoever stole it knows that it only works at progressive.com. so, you can't use it to just buy stuff? no. i'm sorry, gustav. we have to go back to the pet store. [ gustav squawks ] he's gonna meet us there. the name your price tool. still only at progressive.com. here's a little healthy advice. take care of what makes you, you. right down to your skin. aveeno daily moisturizing lotion with 5 vital nutrients for healthier looking

notwithstanding maybe the setbacks on the watch and apple music to start. so again, long-term, i like the prospects. >> i'm thinking still about the comment we heard last hour from deutsche's analyst about how apple's momentum stock, i mean it's so big, usually we start to see these things become, the inertia of them, it's so hard to move the needle. with apple it seems like it jumps around like they just lift listed. >> they're not resting 0en their laurels, trying new things, going into new territories aggressively and in some respects they're still acting like a start-up, which is great. >> apple and disney have overlap in a lot of different ways. great to see you, thanks so much. jon brod joining us today. >>> we want to check in on markets, because it's a rally day after a difficult start to the month. is dow is up 83 points, despite disney being in the red significantly. down 7% this morning. investors are also keeping an eye on the ism nonmanufacturing number. not just beating expectations, but hitting a 10-year high, one of the highest readings ever.

now, eddy highlighted new number on apple music, 11 million people signed up.at the feedback has been, in his words, overwhelmingly positive. i did ask him about whether people are listening to beats one and creating play lists to, to me that would indicate real user engagement with the new service. eddy are seeing that level of interaction by new users. of course all of this news coming as apple stock unreal pressure. investors concerned whether the company can grow iphone shipments in q1 and 2016, whether the engine of china continues to hum. sounding very confident that it will. guys, back to you. >> josh, great stuff. >>> so if you're an apple shareholder, how do you play the company now? let's ask one. channing smith owns 250,000 shares, manager director at capital advisers and joins us tulsa. good morning. you pared your position last year. >> we look at increasing the position. if you miss expectations, your stock is going to get punished despite apple being on the top and bottom lines the iphones unit came in shy. the stock reacted negatively, bouns bou

dre gives apple music a trial run. plus, is the amazon model a harbinger workplaces of the futures?a uses his own money to buy back alibaba shares. all of that is ahead on

. >>> apple music locked in 11 million trial members as paid users. of 2 million, they are opting for family plan costing $14.99 a month. the app store did $1.7 billion in sales last month. >>> cvs health is dropping viagra for list of drugs it will pay for under the insurance. you'll have to pay cash or switch to cialis. it's covered if you have another health insurer. >> very interesting. thank you. >>> now to sports. mets taking on marlins. new york went to the ninth with a commanding lead. marlins scored six straight to scare the mets. that completes the second sweep of the season. >>> in russia the 200 free style. good for her. michael phelps vows not to take a drink until after olympics. he was suspended six months for second is arrest for dui. >>> federal government is demanding records from lance armstrong's cancer treatment. the demand came in in the government's lawsuit to recover millions in sponsorship money the u.s. postal service paid to armstrong's team 1998-2004. penalties could approach $100 million. >>> after leading the u.s. to worl

paying customers were attracted to new apple music.f those using apple music service are keeping it. here's my choice for music, streaming music going into the break. >> there you go. >> thanks for playing it. >> exactly. it is going to be hard for apple to crack the spotify crowd. if you're used to streaming that way, apple seems awfully clunky. >> and i've got sonos that can play throughout the house. half of the songs won't play because they are so -- >> that doesn't work. >> really? >> in this one area, seems to be last generations. >> we're back in just a moment. no student's ever done the full hand raise in ap calc. but your stellar notebook gives you the gumption to reach for the sky. that's that new gear feeling. this week, these office depot brand notebooks just one cent. office depot officemax. gear up for school. gear up for great. have you touched the stuff?. it's evil. and ladders. sfx: [screams] they have all those warnings on 'em. might as well say... 'you're gonna die, jeff.' you hired someone to clean the gutters. not

today," a month after launching apple music has changed 11 million users to paid users. >>> apple said app store did $1.7 billion in sales just last month. and cvs health is dropping viagra from the list of drugs it will pay for under your insurance if you have cvs caremark for your subscription provider. you'll have to pay cash or switch to cialis. it's covered if you have another health insurer. dara back to you. >>> just ahead. 18-time olympic gold medalist michael phelps is making a try for the 2016 games. >>> and a fan gets closer to the game than he paid for. sports is up next. [ horn honks melody ] well, well. if it isn't the belle of the ball. gentlemen. you look well. what's new, flo? well, a name your price tool went missing last week. name your what, now? it gives you coverage options based on your budget. i just hope whoever stole it knows that it only works at progressive.com. so, you can't use it to just buy stuff? no. i'm sorry, gustav. we have to go back to the pet store. [ gustav squawks ] he's gonna meet us there. the name your price tool. still only at progressive.co

thank you, michael. >>> strong debut for apple's new music streaming service.ic has locked in 11 million trial members. a number if i recaofficials sayd with. the service costs $9.99 a month. >>> finding deals on your mobile device can be difficult, but becky worley says it didn't have to be. research shows people don't mind wrouzing for items on that phone, but they want to use a desktop or laptop to buy. because navigating the prompts on a smartphone can be laborious and the phones are small. online shopping experts say you can make it simpler by shopping on a retail are's app, not on a browser. >> most big retailers have an app and they also take your credit card most of time, they off push notifications to let you know when things are on sale, providing coupons and things like that. >> other advice is buy items through pay pal are or apple pay and experts say the services should make it easier for you to purchase. >>> well, cruise lines don't want you shaking hands. >>> and adidas getting into the hands of fitness tracking. here is jane king with today's we

compton has streamed 25 million times in its first week on apple music. this guy just keeps printing money, doesn't he? the album was released he at the same time as the nwa movie. that kind of makes sense, huh? disney made several big "star wars" an shuncement at the expo this weekend. the studio revealed at a peak at the cast of the film due out in december of 2016. and disney chief named two "star wars sections calling it the largest sing land expgision ever. one will be built at disneyworld in orlando and one in california. >> if "harry potter" can do well, can you imagine what "star wars" will do? get a speed pass for sure. >> exactly. >> "jurassic world" director has been tapped to helm "star wars" 9. the follow-up to the force awakens. ey are just lining these up. but it wasn't all "star wars" news. >>> ellen degeneres helped announced a story and johnny depp was on hand to promote "pirates of the caribbean" 5. what? no kos pupil? i'm betty nguyen. this is "early today" and we hope it's your first stop on nbc. (music plays) people are both soft and

dre's new album "compton" has streamed 25 million times in its first week on apple music.leased the same week of straight out of compton. good marketing there. people are both soft and strong, which is why our products are too. and we believe in value, so we give you 60% more sheets than charmin ultra strong. angel soft. be soft. be strong. >>> leading the news in the "wall street journal," pentagon to add drone flights. over the next four years, expanded drone flights will give military commanders access to more intelligence and greater firepower amid more global hot spots. >>> in "the new york times" obama plots life after presidency. it's a fascinating glimpse into the president's private plans for a billion dollar library and global foundation and the rich and famous people he's consulting along the way. >>> also in the news, a canadian company received a patent for a space elevator. yes! the 12-mile high structure, look at it. it would bring passengers and payloads into the stratosphere where they would board spacecraft to be launched into orbit and saving both time a

apple shareholders hearing reports now about the new streaming service that our music to their ears. you until june is launching june 30th. one month after launching 11 million people already like the sound of apple music. the tech giant has real than half the number of spotted via customers. the current champion for the three month free trial. period the service costs 999 a month for access to 30 million songs, tons of playlists. live radio stations. come october when the free trial is over we'll see how many people a chance -- in and convert to paying customers. 11 million customers jumped right on board. the new plan 1499. that's a good sign that they signed up for that one. google player, amazon prime streaming music. we will see if they can bring it. sandra: the stock closed at $150 yesterday. the analyst community has been for so long optimistic they just finally started to turn on them. sandra: where his car icon? you $220 target. coming up, donald trump gets ready to play defense. >> they are under a lot of pressure also when one of the ways they do it is by attacking me. san

live according to usa today apple music is free and will cost $9.99 a month.or comparison spotify, 20 million paid subscribers. will people cheat this service when it is not free? >> it is $10 a month. the danger, will people -- pandora is free and a lot of millennials not into the ad, willing to pay especially if you are not subscribing in that area. looking at this, the danger is looking at the next six months in total. people will roll back and forth month. it beats one working their radio station and curated music and how is this affecting itunes. >> apple has an unbelievably powerful company is hard to say you want to be betting against anything the company does and stock is down from the all-time high. >> a huge dispersion, if you look at the growth tech earnings 15% to 17% growing 5% to 7%. talk about a company like apple. right now in turkey want to focus on places like mobility, like ecommerce, another big area 4 sent avoid valued the semiconductor companies. >> we had some negative announcements in check this quarter. >> it gives you the mobile but t

are consumers bailing on the new apple music service? it depends who you ask. her music watch, 48% of trial users have dropped out. apple says only 21% from on theed -- have on theed out since the service debuted. users will have to start paying in october. september 30th is the first test to see how many pay. obviously every new product launch is going to be under scrutiny in the post steve jobs era of apple. >> to lose a quarter of the people before they actually have to start paying is quite a long. in fairness to apple, if you don't think it's going to move the needle on the up side, it shouldn't move it down either. it's part of eco system. i had a push advertisement from apple today for full apple music on my iphone. they've done it in the past. >> did it work in did you sign up? >> i will but not until we've done the show. >> also will be interesting to see how many spotify users switch over. they're dominant. >> the other big story. a few hours before the fed minutes are released. we're looking for any hints about the timing of an interest rate hike. wha