emily: activision has also been dealing with cultural issues.ions about whether the ceo bobby kotick stays on. ed: what analysts would point to is microsoft went into the deal with their eyes open. they bought the company, or said they would buy the company at a time that was going through. the biggest wildcard is lina khan, as we were just discussing, who has a general appetite to look at big tech deals. in the first quarter the ftc asked both sides for evidence. we thought we would get responses on monday as part of earnings, but in the earnings statement they just said as is normal, we are pending a deal, sorry, cannot comment. cannot give you any more information. maybe by the fourth quarter is when bloomberg intelligence thinks we will get more detail. emily: it is interesting to see lina khan scrutinizing a much smaller deal between meta and a small vr company, and not to have the same kind of scrutiny of microsoft and activision yet. ed: that we know of yet. we are in the preliminary stage. the deal was on track to close in june 2023, whi

>> in investing in activision. >> i never think about berkshire being involved there's a new generationow. that's another story but to your point i guess the larger question, when they bought it and nadella is brilliant, absolutely, but even when they bought it, is it possible they were still paying a pandemic premium these numbers do not look good now for gaming what is that telling us? >> think of what the most important business is for microsoft right now. the cloud. >> but that's slowing. >> but it's not -- >> didn't -- >> they have the new thing called xbox game pass which lets you basically stream your xbox video games to anything with a screen you don't have to buy a $500 video game console we'll let you play the games anywhere we own not just activision eventually, they own mine craft and see this as a way to super charge their cloud gaming service as well which super charges, azure cloud the most important business it's not just about the gaming thing. it's also about growing cloud which is hugely important. >> some of the traders at morgan stanley were saying look, they think

we will go inside the microsoft activision deal. first, tesla and apple outperforming as investors break for comment from the fed. >> stocks dishing the day largely higher looking at the s&p 500 and the tech heavy nasdaq both finishing up .3%. little bit of week this in the final few minutes of the trading day. if you look at the more speculative areas of the market, not a lot of movement. bitcoin and semiconductors both not doing much. investors are waiting to know how hawkish jerome powell is going to be on friday jackson hole. we have a couple of earnings to look at. nvidia falling about 3% in the post-market. they talk about lackluster demand for components in computers. better news coming out of snowflake that's a cloud company . they beat second-quarter revenue up almost 17% in the post-market. salesforce also falling in the post-market. a final look at the trading day, i'm looking at tesla calling about 12% today. -- falling about 12% today. it was the final day before they executed the stock split to finish the trading day.

activision specifically is facing a lot of challenges here.ave been lawsuits and employee walkouts. there has been accusations of sexual harassment, sexual assault. how much did that concern you? >> we had access to data from the company before we announced the acquisition to see what the actual numbers were in terms of reports. we definitely as a team signed up to say we are on our own journey with xbox. a lot of people will feel very dedicated to building a great workplace environment for them. that is true of any of our studios but it is obviously a conversation you are going to have. you think about the board of microsoft and when they are thinking about the deal and typing into their search engine, activision, what are the headlines coming back? >> we learn from this, we will continue to learn. we are committed to that journey. we think it is critical to our business. >> will it stay on? >> i am not in a position to make comments about their leadership team, the regulatory phase or how that will close. when the deal closes, until that poi

speaking of activision and microsoft, i will be speaking with the gaming ceo.e talked about the deal. this is bloomberg. ♪ emily: apple employees are pushing back against the return to office. apple is asking workers to come back, but hundreds of employees have signed a petition calling for more flexibility. this at a time where the term quiet quitting is making the rounds on social media. the idea is not that employees quit but instead do the bed minimum. for the second time this year, tesla is raising the price of what it calls. driving. the tesla system is controversial because it requires active supervision because it does not live up to its full self-driving name. moviepass is staging a comeback. the movie subscription service is returning labor day weekend. there will be three price hikes a year. no option for unlimited. coming up. his amazon buying irobot's plan you? we will talk to the rumba founder, next. this is bloomberg. ♪ pst. girl. you can do better. at least with your big-name wireless carrier. with xfinity mobile you can get unlimited for $30 pe

they bought activision in the gaming space and they're likely to continue with more.t are they going to do? first of all, i think that it's going to be a lot more small acquisitions because the company is looking to easily add on the whole build versus buy decision and looking where they can to be able to buy the assets especially at a good price that can accelerate their coming to market you're seeing a lot of that already within the a.i. and cloud space where they're making acquisitions there, and you see them in the gaming space as they're buying game studios. microsoft has aspirations with microsoft game pass to be the netflix of gaming in which you'll have a subscription model to multiple devices and so thai need to own a lot more games which will also monetize the game purchases they need to buy a lot more game studios to keep adding and likely they continue to acquire beyond activision, but likely much smaller ones in the space >> so let's move on with amazon which has some restraints around it, i would think, because of concern over government coming in and sa

and you can see the price of activision blizzard isn't even the price they're offering skepticism there everything sounds good that's a big reason why amazon may not do a deal like this. >> absolutely, deirdre that was the big concern for microsoft when the activision deal was announced microsoft is taking its time to get that deal through. they're giving themselves 18 # months to work with regulators to make sure the i's are dotted and t's are crossed to make sure they can buy the company amazon, despite the regulatory head winds and talk from the ftc and doj about m&a activity in big tech, they're going through with acquisitions, closed mgm just fine and they just announced a couple other acquisitions so, look, it could still happen, and big tech is still moving forward. and, again, gaming is such a small part of amazon overall, and so they can also make that argument, like, you know, this is not a -- this is more of an add-on, the same kind of argument microsoft's going to make as well. >> that's why i think it's important for us to try to focus investors on where the opportunity is

speaking of activision and microsoft, i will be speaking with microsoft's gaming ceo on the next editionf bloomberg studio 1.0. that episode is coming up this wednesday. we will be right back more bloomberg technology. this is bloomberg. ♪ emily: apple employees are pushing back against the return to office. apple asking workers to come back to to three days a week starting september 5, but hundreds of employees signed a petition calling for even more flexibly without having to be approved by managers. this at a time when the term quiet quitting is making the rounds on social media. it's not that employees actually quit, but do the bare minimum job requires to maintain a healthy work-life balance. for the second time this year, tesla is raising the price of the driver assistance program it has 215 thousand dollars in north america. the system is controversial because it requires active supervision and some critics say it doesn't live up to its full self-driving name. and moviepass is staging a comeback -- the subscription service returning labor day weekend. there'll be three price tiers

activision and ea. pouring money into the metaverse not all bets paying off. julia boorstin looks who is seeing returns and who may be pulling back on spend. hi, julia. >> carl, recessionary pressures may have made metaverse plans less of a near-term priority tech giants make long-term investments in hardware and software bringing consumers and companies into immersive 3d world. since meta's name change last year the company has readied a web version of its horizon world, and a high-end vr headset quelled the quest pro it plans to launch later in the year and plus opened a retail store focused on vr. meta suffered setbacks reportedly delays release of ar glasses beyond 2024, and the ftc is looking to block its acquisition of a vr start-up plus, burning billions of dollars on its reality division every quarter. but not just meta. in the next year we expect a battle to brew to sell new hardware now, in addition to meta's coming quest pro along with its core quest 2 headset, lower cost apple is expected to release its mixed reality product soon as this spring and

he got in activision in ar arbitrage.rised everybody when he revealed that at the annual meeting this past year in may. >> that was not necessarily a sign that warren buffett is getting big into video games it was an arbitrage opportunity? >> he revealed it in front of the shareholders you know, i think bobby was there from activision and he found out when buffett told the ou audience worth showing up >> adding to chevron and we know he has been adding to occidental as well. correct me if i'm wrong, warren buffett owns 20% of occidental petroleum. a lot of people are saying these oil and gas companies. they are the fossils or dinosaurs. to your point about owning things forever, it is clear that warren buffett or somebody at berkshire is not necessarily betting that oil and gas companies are going to die any time soon. >> that was the one add from tepper got out of technology names, but jumped into energy name. >> yeah. carl icahn we had data. decreasing the holdings in the small mid size refining company and decreasing h

activision blizzard and eddies have torpedoed a wood of war craft smartphone game in development for told that he's disbanded a team of more than 100 developers creating content for the title. two companies disagreed over financial terms raising questions about one of the industry's most lucrative relationships. haidi: we have got to talk about mikal and the casino operators because we have seen some positive numbers. that was mostly on accounts of games across the u.s.. mikal just continues to be such a poor outlook. we saw mgm gaining but a big miss on macau because of the lockdowns we have seen. this as we see china reopening the border. we see those cases maybe. it will take a lot speaking to most analysts about how quickly the recovery can be staged given a lot of the structural issues. we did see shares of macau casinos rallying on the optimism we will see the resumption of the reopening of orders with china. shery: if you're talking about structural issues, we have to talk about china property. home sales continuing to slump. we have uncertainties surrounding the restructuring

berkshire boosting stakes in chevron and activision it dumped the stake in verizon the selloff in tech stopping tiger global the fund increasing the stake in meta and position in alphabet. slashing the holdings of snowflake. the fund cutting position in microsoft by 30% meanwhile, david tepper making cuts to his portfolio. ditching the stake in mosaic and macy's one position is constellation energy coming in at $155 million. and taking a new stake in colgate. the firm adding a $159 million stake. making this one of the top ten positions. snatching up shares of natural gas and another energy name ovintiv. revealing the stake in disney along with the call for the company to spin off the sports network espn shares closed up 2% on the news in yesterday's session. >>> to the top stories bertha coombs is back with more. good morning, bertha >> good morning, frank remember recruiters, but ramping up efforts to get permanent employees back in the office the company telling employees who work in santa clara county near the headquarters, they need to be in the office three times a week starting

activision reporting revenues ahead of estimates.formance of call of duty vanguard lead to a decline in adjusted sales. the game's sales combined with the gaming industry troubles have meant for a tough year. it has been acquired by microsoft. the biggest operating word has been spending more than $11 billion, which is more than was offered by its rival. we have a lot more on the way. this is bloomberg. ♪ (announcer) enough with the calorie counting, carb cutting, diet fatigue, and stress. just taking one golo release capsule with three balanced meals a day has been clinically proven to repair metabolism, optimize insulin levels, and balance the hormones that make weight loss easy. release works with your body, not against it, so you can put dieting behind you and go live your life. head to golo.com now to join the over 2 million people who have found the right way to lose weight and get healthier with golo. >> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology,"

>> this kicked off with the microsoft announcement they will buy activision for $70 billion how doesk about it they have a similar product that microsoft does luna a streaming cloud based gaming service. limited titles no indication out there that it is doing well or making money for the company. with the company like electronic arts or if amazon were to buy them, this is the tent-pole titles they need to attract people to the platform if you look at video games from the '80s to today, the successful ones that are able to survive are the ones to have the tent-pole first party games. nintendo has super mario and donkey kong. if it wasn't for halo, we would not talk about microsoft and gaming today this is what they are looking which is the first party title these streaming services just boost cloud service. aws just like azure is ben benefitting at microsoft. >> gene, let me bring you in here there are all of the platform dynamics in gaming. big players trying to integrate. steve was talking about amazon and google and microsoft, et cetera the game makers are trying to horizontally in

you will get earnings from activision blizzard and simon property they will have the finger on the pulseconsumer demand >>> we are coming off the best month from the stock market since 2020 the worst half of the year for s&p since 1970 and the best july in two years what a turn in the month of july nearly every stock is higher will that rollover into the new week or month? i don't know right now, the futures are down six points i'll not make a call based on six points it's in the red, but irrelevant. we are not up 200 in the futures. we are not necessarily right now seeing big aggressive buying action coming in to the new month. >>> energy will be the focus going forward. it has been the focus for much of the first half of the year. that continues you have opec plus meeting on wednesday. the last number of meetings for two years since they made the covid demand cut which they have been rubber stamping agreement with tweaks around the edges that is ending wednesday's opec plus meeting may be the most important in two years. now they will start outside of the planned deal and start individ

you have the activision deal for nearly $70 billion.ou have meta, amazon, all of these players spending so much money and regulators suing them and trying to get in their way. and so maybe apple is fearful of that. as a new note inside the regulatory filings to the sec may suggest. but i think it is neither of those. 2020 was the height of the pandemic and that year, they spent more than they had since 2014. right? i also think that apple is not spending amounts of money that necessarily would lead to scrutiny from the ftc and other governments globally. i think this is a matter of fact of their product development schedule, one. two, investing in other areas. and three, maybe they are trying to go at it more alone without needing to acquire companies. but at the same time, this is extremely odd. i would bet that most people do not know that siri, face id, touch id, apple music, apple news, the weather app, i could sit here for 10 minutes giving you a list of iphone features that we all use every day. those all stem from acquisitions. s

. >>> let's get a gut check on activision today lower to flat. this is a stock that trades now in the context of microsoft's pending acquisition. that was more $95 a share. atvi today currently a shade below 80 some investors still skeptical, john, the deal gets done at all, given some of the lingering regulatory worries that are circling all around the world. >> it's a big deal with one of the big companies, but if anybody is going to get greenlighted, some argue it's microsoft of the megacaps. another name that just reported earnings, chip supplier on semi, posting a beat across the board with revenue and earnings coming in above the consensus for more on the quarter, let's bring in ceo hasan el currie interesting market reaction to maybe they're just looking at the gross margins, but i guess the underlying question for me is, how clear is the demand picture for you given the slowing economy? >> look, overall, we split demand into core and not core. let me focus on the core business that's where most of the clarity is in the long-term, which is

then% according to research firm mpd and that showed up in companies like take two interactive and activisionndemic darlings like roblox are growing quickly and there are tough comparisons from the first two years of the pandemic and take-two interactive providing disappointing guidance for the rest of the year and it's not just the drop in consumer spending, these companies do a lot of business in europe and asia where foreign exchange winds are the worst nintendo and sony both missing estimates for the quarter and sony cutting profit forecasts for the full year by 16% and just monday we heard nvidia demand weakening for graphics chips used in consoles and gaming computers and some are planning ways to diversifying revenue outside selling digital items to players for example, roblox dave pizuki. one are the sub skriepgz services that we see from companies like sewn owe the playstation and microsoft and the xbox you pay a flat fee and it's like the netflix of gaming and you pay a flat fee and you can stream the games right there and it comes with the library of hundreds games to play from. ot

interesting one just kind of thinking about the actual games that they'll have once the -- if the activision blizzard deal goes through and already having good dna with the xbox and success there. this could be an interesting point for microsoft to consider. although john points out they are pretty busy as it is and anything in addition would raise the eyebrows of the regulators to understand is this going to be anti-competitive? yes, all of the advertising players could actually have a look at this as john points out, thinking about where the other creator aspects are, and what tools they're using, so adobe could even be an interesting play. but look what we do know is that a lot of the learnings from gaming translate very well into other applications so i think we could see a much broader suite of services that could plug in gaming as one aspect and really advertising is the core so i think, yes those players that are deep in the advertising space could actually look at this and at least keep track of it to see whether or not it might make sense. yeah, look at the end of the day these move

we couldn't tell the story about abolitionist side of the story of climate change and a climate activision to the warming earth and i couldn't tell about the evolution about talking about the people who survived all kinds of sexual violence and who escaped and he couldn't talk if how engaging with all of these people who continue to teach me. so i think that the book is so will like making a film or something but i think about ultimately came out the way that it came out is because i've been very fortunate to be a student of so many radical thesis and activists and storytellers and artist and they have influenced me greatly and continue to influence me and so hopefully that just goes all of the way through because that is me and who i am that's what made me. so if v i did that i would be vy proud and quickly, i will say that but it did not want to happen is that precisely what you said that abolitionism, when you call it, performative utterances, i do not want people to be like i want to be in abolitionist like derecka purnell, like hopefully what i try to do is all of these people, doing

we just showed you the speculation going on in gaming stocks i clarify microsoft acquired activisiont of justice release of redacted version of the affidavit likely to give details, of why there was unprecedented search of former president trump's home. mitch roschelle is here, leo -- kelly is here, mitch what do you think we will learn from this affidavit? i mean, obviously, probableing redacted dodge did not want to release it. mitch: to heavily redacted ridiculous other things released last four, five years heavily redacted means talking heads, as i say that, are going to start speculating only going to, you know, create more doubt more suspicion that will be unfounded, unprecedented no matter how you look at it to raid the home of a former president of the united states, regardless of the justification, and i think this is going to continue. maria: it comes on the heels of a string of bad behavior around the fbi, that we know of, the russia collusion lie, where fbi agents pursuing fisa warrants to spy on trump officials they new with dossier was made up, members of hours judiciar

viewpoint started because there has been consolidation in the industry this year, most notably between activision and microsoft, which is a deal that is expected to close maybe by the end of this year all the big tech platforms are interested in sharpening their 3-d interactive skill set. it's something that's very difficult to build on your own, so they're out there probably wanting to make acquisitions the question is, who are the right targets and will the government allow such acquisitions, especially under this administration. and that's something we're concept al about. >> you're skeptical of that. take two is also up today in an awful day for the markets. brandon, i'm afraid because of what the market is doing we have to leave it there for now. we have the dow down close to 1,000 points shares of buy now pay later company affirm falling off a cliff after the company reported a larger than expected loss for the quarter. on "tech check" they talked about his outlook for the credit environment. >> it's a conservative view in that we don't know what the credit future looks like the economy is

highlighting moves through the regulatory filings 13-fs warren buffet buying up more apple, amazon, activision and chevron, tripling the stake in allied financial, more than a billion dollar stake exiting verizon. >> smart. >> apple management cutting positions in amazon, alphabet, micron and microsoft kind of follows some derisking we have seen from the big players around technology in particular. >> which has been wrong for the last four weeks. >> yes growth has out performed. >> if you're a billionaire you can't be wrong you have to be right. >> we don't necessarily see the full exposure. >> no. they traded out. they could have traded out. >> they could have -- >> the three arrow, great piece in the "new york" magazine i look at dave tepper's piece his moves and i say he may have reversed already he's very difficult to track down. maybe he's been buying the banks which have been a fantastic performer so far. >> kind of quietly especially with the lower interest rates. >> unbelievably quiet. >> 10-year down every day. >> not unlike 1990 to the 1992 period where alan greenspan, fed chair, dec

on the squawk planner, earnings season is rolling on we hear from activision blizzard a lot of peopleompany. it will be taken over. we will see if it will an awai regulatory caterpillar and dupont and jetblue with the deal with spirit and march riott before te bell we will hear from yum brands and under armour and robinhood we get eli lily and then draft kings and amc and cinemark we get the jobs july report on friday no adp private payroll report. you marked your calendar the company is still working to retool the methodology >> okay. whatever maybe we won't need it the next month. we will retool our technology. we won't need adp. >>> are these regular calendar year companies that are not ready by august 1st with reports? a lot are retailers. fiscal years are different this could be a quarter ended in july. >> are you asking why? >> why they expect us to jump when they totally miss the reporting period and we are still supposed -- why can't you get it done? if it ended in july, why >> about when they think they get air time not on cnbc. elsewhere. >> most people, if your quarter ends

caterpillar ceo will be joining the gang on "squawk on the street" later this morning take a look at activisioned by microsoft in january, $1.64 billion, roughly 28% lower than a year ago. you're looking at that stock off marginally because of that bid from microsoft and take a hoolook at uber they reported quarterly loss of $1.33 per share, but its net loss of $2.6 billion shows unrealized, $8.07 billion, beating the consensus of $7.39 billion. that stock up big time this morning, joe up about 12.5% uber's ceo will be joining us later in the morning to break it all down >>> brian deese is going to join us then bill ackman of pershing square will be our guest "squawk box" coming right back >>> welcome back to "squawk box. earnings and the july jobs report in focus for investors right now. joining us, mohammad el erian. he serves as president of cambridge university's queen's college. it's great to see you. before we get into what we're seeing in earnings and jobs, let me get your take on nancy pelosi visiting taiwan and the anxiety that it seems to be creating in the markets. >> actually, andre

pre-pandemic , better than the 2019 levels but you can't compare with the pandemic, so you have take two, activisionis slowing. stuart: slowdown is the operative word in almost all of your reports this morning. chips, slowdown in demand of the future. lauren: yeah. stuart: nvidia slowdown in the future, take two interactive video games, slowdown in the future. not great. lauren: i like slowdown better than demand destruction, as a word to describe what's happening, but yeah the economy is softening. you could debate recession however you want and you also have to compare, like look at what we're comparing now to when it's a video game company and everybody was stuck at home you have high levels to compare yourself to. stuart: here is another area which i think where demand is drying up, and that's the used car people. lauren: yeah. stuart: carvana is down $4 and you've got vroom down 20%. lauren: this is weakness online so both companies that you're looking at on the screen reported. car guru said the web traffic in the u.s. down 10% from last year vroom e-commerce revenue down 44% in this past quar

you have to remember microsoft is trying to close in on 68 alien dollar acquisition by activision blizzardney, and amazon about a possible sale according to previous reports and that is the future when you have gaming bigger than movies and music combined, a lot of these companies want to expand in that industry. jay powell is more aggressive talking more pain to come to bring down inflation, big tech is leading the losses and treasury yields going up, you heard powell say they could increase rates in the future so expectations are that the fed will keep hiking rates possibly aggressively to bring down prices and that means yields go up and when you have more guaranteed money on government bonds, money needs to come out of stocks in order to chase guaranteed money on treasuries and that is why stock is down, treasury yields higher. ashley: what is interesting is i think everyone on this show has predicted jay powell was going to be aggressive. we heard from all the other fed officials singing from the same song sheet and then we get this confirmation and the markets react with a big plunge

[laughter] what do you know about activision blizzard? today. still trying to close that deal with microsoft which would be $65-70 billion range. i think there's definitely going to be unique in in this report card can, i think most people expect a slowdown when it comes to that gaming boom that came place during the covid. stuart: pinterest. susan: also we have activist investors in pinterest, and given the slowdown we've seen in advertising revenue and also a slowdown in usage that we've seen in pinterest namely, we got the numbers from meta, also snap has confirmed this is a reality that we're in. stuart: is this a big afternoon for you, dan? >> look, it's big because really in terms of the next leg, it's going to be cybersecurity. that's really the one area we haven't seen, and i believe it's continuing to hold up stronger, see the earnings. come bind that with cloud, that's the one-two punch. stuart: okay. susan: palo alto was an upgrade by wolf saying there's 40% upside. would you buy into the big names like pal lows and the rest of