joining us now to discuss, alex webb, who covers all things apple for us. eren't selling very many of them. the cheapest models probably don't add a lot of revenue to their top line. the disadvantage of these models is, unlike almost every other apple product, they can't push any services revenue through them. the traditional, old business of selling songs through itunes is kind of dissipating gradually over the years. that's because of apple music, which people pay $10 per month for. that's a subscription service which drives recurring revenue and is therefore very attractive . emily: we are getting new details about this foxconn manufacturing facility that president trump announced yesterday in wisconsin. what do we know? alex: we know for certain it is a $3 billion incentive package, clearly a big -- more than 30% -- about 30% of the total costs of the site. one of the other interesting stories that broke today was sticks finally said they are probably not going to see a change to border taxes this year. it was quite interesting. on wednesday, there was a

emily: that was alex webb and tom giles.ning from morgan stanley analyst says he is seeing risk to the auto industry in china which he sees as a greater source of competition then demand. he was a perennial tesla bull but downgraded the shares on the threat of larger companies. he reiterated the downgrade after our exclusive interview, in which tim cook elaborated on apple's ambitions when it comes to cars. up, a space startup claims it has the largest operating fleet of satellites in the world with over 140 in orbit. we will hear from c.e.o. will marshall on what is next for the company. go, our new interactive tv function on the bloomberg. you can watch us live. you can go back to an interview. you can play along with the charts on air. this is for bloomberg subscribers only. check it out at tv . this is bloomberg. ♪ emily: president trump has signed an executive order to form a national space council which will be led by vice president mike pence. this will revive a council last in place in 1993. president trump says

alex webb whog in covers apple from san francisco. talk to tim cook yourself and ask about the prospects of manufacturing in the u.s.. >> apple does not own any factories. in china, these are made by contract manufacturers. we know already that foxconn and is planning to bring some lcdfacturing to the u.s., panels in the midwest, and these will be shipped to other factories, which will also likely be in the u.s. to turn them into computer screens and television screens. there something about the economics about those displays that makes a more economical to build in the u.s.? >> yes. they can basically be made by an automated process. you can't do that with iphones. you need refined motor abilities to put that stuff together. displaying manufacturing here, it means maybe they have a stay of execution in china. quote,a fascinating , unlessrump saying, tim you start building your funds in this country, i will consider my plan a success. donald trump layers on the pressure. we don't have confirmation from apple, but it does make sense. w

joining us, to discuss caroline hyde in london, alex webb, and the cox automotive senior cox automotive is the parent company of the brands kelley blue book and auto trader. is it really for the masses when a fully loaded car is more expensive than 35 k? >> is hard to think of it as a mass-market car when you think of the bmw three series as similarly priced and it is not a mass-market car. it still does not have the volumes that elon is predicting he wants to assert -- once to sell this one in. do we know about the event? what can we expect? alex: very little. emily: elon is going to be there. alex: they will have 30 cars. it is proximity to the fremont factory. people who are close to there will be the first. who lives close to the factory? employees. will it be the final trim of the vehicle? what are the aerodynamic performance of it, which we do not know about, the final fiddling around the edges is what we will learn about. lots of analysts are weighing in. what are the pain point is going to be? notably goes from negative to positive and they are pretty split. you have just over a

thank you, alex webb, joining us live from san francisco. let's talk about more earnings now.nds, its new property in macau. casino operator revenue rose 19%, beating analysts estimates. it came a day after rival wynn resorts disappointed investors. let's bring in the gaming and list. -- gaming analyst. ,he vip segment supported wynn but given sands' reputation, how did a fair? >> let's take a step back and look at macau holistically. all operators are pursuing all ends of the market. you want to capture every segment of the business. there is growth all around. sands is making progress to capture the premium end of the business, gambling revenue was of35%, impressive because the new property that opened up as well as an overall lucky quarter, so the house won better in overall bets. they are making progress as well, offering premium rooms which they are renovated -- renovating, introducing bigger suites. that is going to attract more of the high-end market and compete better with wynn. at the end of the day, they are at an advantage when it comes to the mass market segment, w

david: alex webb joining me from san francisco.are expecting daily press briefing with sarah huckabee sanders. you can watch it on the bloomberg. be sure to join us today for the fed special at 2:00. at 2:00 new york time, 7:00 in london right here on bloomberg television. that is coming up. this is bloomberg. ♪ scarlet: this is "the fed decides." scarlet fu and for the next hour, we will be bringing you special live coverage of the federal reserve statement just-it's a way. it is decision day at the fed. no change in interest rates expected and there is no press conference. the key issue, a start date for the balance sheets unwind. kickingt jeff rosenberg things off. later in the hour, former fed vice chair alan blinder. keeping an eye on washington, press secretary sanders will be holding a press briefing. we will bring you information on the investigation into russian ties. i am joined by tom keene. thee look ahead to be on 2:00 p.m. statement, my thoughts are you have fed board nominee testifying to the central banking committe

emily: we will be looking forward to your reporting on that, alex webb, who covers apple and sometimes thanks so much for stopping by. british pay-tv company sky reporting rising profits in the fourth quarter, despite increased costs and rising competition from netflix and amazon. the ceo said the business has not been distracted by a takeover bid from rupert murdoch's 21st century fox. the u.k. government is yet to rubberstamp the $15.4 billion deal. at the same time, sky announced a new piece of hardware, a sound system working with the french startup, which counts rapper jay-z among its shareholders. i want to send it out to caroline hyde in london for more. caroline: the french sound company is devialet. it is backed by investors including music mogul jay-z, not to mention trump's current favorite foxconn. in an exclusive interview, the ceo of devialet explained the partnership with sky, what's unique about the new sky sound box they are developing, and where next with the new technology. >> we have developed new technology in sound. we are improving the emotion of sound. our displ

and in san francisco, we have alex webb.ook at the quarter, are there highlights from it? we focusing our attention forward? john: the focus is forward right now, julie. apple iss because making that transition from a pure hardware business to a balance business of hardware and software. know, when they report the quarter, i will be looking hard this he how businesses did and how they are doing there. i will be looking for any commentary on the upcoming iphone cycle. you alluded to the potential for delays. i doubt they will comment on it. scarlet: it doesn't matter as much as next quarter and what it says for the iphone. the most of everything because the iphone makes up two thirds of apple sales. what do we know about the likely release date of the next iphone? iphone 8? we are talking about delays until when? october, november? alex: there will be three new iphones. an upgrade to the two current phones we have. the iphone 7 will become the will be 7s the 7 plus plus. the one likely to be delayed will have a different scre