is it apple tv plus, apple news applecart, apple arcade? dan: when you look at the service segment, it is kind of a third, a third, a third you have the apps. they are mostly gaming. you have apple care which nobody ever really talks about, where it is this warranty on your phone, where if you drop it, they will replace it or fix it. then there is apple tv. they came out with a new package on their apple tv, it was met with not too much of an applause compared to say netflix, amazon, disney and fox. spaces ever-growing. you see more people writing apps, more gaming. where the action is, this music, the tv. that is what everyone wants to talk about. they have to decide if apple wants to spend more than a billion dollars in content, try to compete with netflix in bringing out shows. i think that is the more exciting component on the service side, seeing what they will do with that on the entertainment side. emily: we will be speaking about huawei a lot later in the show. huawei is a leader in 5g. while it is a big competitor with apple in the

apple moving the content, you kind of wonder, these are the guys i feel like apple should talking to.em like they are on top of it. caroline: they are on top of it and in a growing market in india where mobiles are becoming more prevalent. romaine: another big day of earnings. this is bloomberg. ♪ amg grabbingle and the earnings headlines after the bell. projecting revenue in the current quarter that topped analyst estimates. abigail doolittle joins us to talk about how the results are affecting. let's talk about apple. everyone talking about the fourth quarter. fiscal fourth-quarter looking pretty good. higher astock popping little bit. one of the biggest influences is the whole ecosystem of apple suppliers. amd, of connect that to course a little bit of a disappointing forecast, it looks like the chip sector overall could be a little bit ahead of itself. this chart makes that case today somewhat powerful way. this chart is 8196. what we are looking at a yellow is apple. in white, the stocks over the last year. havee these two segments treated together. last year, we see that apple g

apple. results quieting the critics apple stock right now up nearly 4.5% the headline is this, yes. iphone sales are slowing but one other part of the business is beginning to shine. what that is and more on apple and the big move in a moment happy fed day. in nine hours the federal reserve is expected by pretty much everybody to cut rates for the first time in 11 years that cut will likely be by a quarter percentage point, which would take the official base borrowing rate down to just over 2% ahead of that stock futures are on the move higher dow right now up 71 points as well there's two questions, really only two that matter to your money. number one, how much of the rate cut is priced into stocks? if the fed shocks everybody and doesn't cut, then what happens most feel the bond market priced this move in we've seen bonds move the last couple of months, but the last couple of weeks they have remained steady. a lot of red in the asian markets. he t the nikkei down almost another percent. i

apple news, apple music always exist, coming in the fall with premium tv programing, apple arcade and, those services are accounting for a high revenue mark. that is really strong. i've been covering apple for many years in the consume every technology space and it is interesting heading into the fall cycle we're talking about 2020. people say 5g is coming out in 2020. we may see interesting mixed reality hardware in 2020. i say, pump the brakes, we need to focus on what is coming out in a short month. i quickly want to touch on the washable side because i think a lot of people are focusing on services, yes it is doing exceptional but on wearables from theism pod to the apple watch revenue is up 60% year-over-year according to financial times. that is a large number. susan: that is what luca pointed out as well. wearables were up 50%. max sales up 11%. ipad was up 8%. they said all-time record for services talking about apple music you're paying for, apple care, the cloud as well. we're closing in on crossing that, doubling the target that tim cook had for services to get to, just aro

sharanjit, a different story for samsung compared to apple?erent in terms of its operating profit. you heard about how apple's iphones represented less than half of overall sales for the first time since 2012. and that seems to be symptomatic of smart phone penetration across most brands. the fa ct penetration across most brands. the fact that people are hanging onto their smart phone models for longer rather than trading it in for every shiny new unreleased. that impacts firms like samsung, crucially, it ma nufa ctu res firms like samsung, crucially, it manufactures the memory chips that go into smart phones and that is still its top owner and once demand for new phones. soders to matt everitt chips, wet experiences deep bowl of 71% ——so to does demand for its chips. it is a notoriously cyclical industry and is seeing a downturn after a two—year boom, mainly due to slowing demand for gadgets such as smartphones. they have also previously blamed the us china trade before a drag on earnings and may be facing a more challenging humans are south

apple?s and i think that's an attractive business for them. but it's a large long numbers problem and it's a piece of the services business. so our view on apple is, if you fix iphone, get iphone backs to growth, then services becomes you know, kind of the cherry on top to kind of keep the stock moving but nothing works unless iphone works, because it's just so large. >> so what meeds needs to happe5 and what additional features could you build on to a phone through 5g that would reignite enthusiasm >> it's a good question. one of the questions generally is why 5g? why am i going to want a 5g phone? and first i think they're going to market it very strongly, because the whole industry kind of needs a catalyst right now. i think that will be part of it. part of it will be coverage, just being able to get bandwidth in a sports stadium, something like that, that you'll want one. but i think what's important, and one of the things that gave a glimmer of hope to us a month or two ago was the agre

>> this thing in apple, if you want to own apple i would just want to own apple.ake it simple. >> adi reports i think on august 21st. i think piper raised their price target to 135 or so. not a cheap stock. 22 times forward, 30 times trailing however, what chris just said, i mean it is a stock given what apple just said that might continue to rally in their earnings once again, if you are looking for a name that might have some tail winds into their earnings release, adi might be the one. >> let's get bash r back to josh lipton with more news on apple josh. >> reporter: some news on the apple card cook saying it is being beta tested by employees right now and the rollout will happen in august no hard date here on the call cook is offering, but he says it will happen in august. of course it is his high-profile credit card partnership between apple and goldman and another service for the iphone maker, melissa. >> thanks. josh lipton with an update it looks like a rollout sometime in august. will it help the services business >> it is incremental it won't be a game c

apple plus, apple news, applecart, apple arcade? dan: when you look at the service segment, it is kind of a third, a third, a third you have the apps. you have apple care which nobody talks about, where if you break your phone they will replace it or fix it. there is the tv. they came out with a new package on apple tv. it was met with not much of an applause compared to netflix, amazon. you see more people writing apps, more gaming. , this music,ion is the tv. than aants to spend more billion dollars in content, try to compete with netflix. i think that is the more exciting component on the service side, seeing what they will do on the entertainment side. emily: we will be speaking about huawei a lot later in the show. a leader in 5g and competitor to apple in the smartphone business, and has become sort of a pawn in the u.s.-china trade war. apple isn't putting out a 5g phone this year. we expect that next year. does that mean apple will be behind? dan: that is always the concern, that huawei or maybe samsung will be ahead of them

emily: apple was.gy of some of these tech giants, letting softbank place some fund bets. sarah: there was so much skepticism around the first fund. $100 billion seemed impossible. for their first press release for that fund, they said we will deploy this cash over five years. it has only been three years and they are raising even more. in a way, that has been successful far more than anyone thought possible at the time. emily: you did one of the last big interviews with masayoshi son. sarah: yes. emily: he told you he thought it would last a while. sarah: he is such a big thinker. he was talking about how they would have a successive set of these funds. they would all be around $100 billion. he wanted to have a steady stream of cash to invest over time. emily: where are they going to put this? sarah: this is going to be harder because all the promising late stage companies they could have talked to about an investment, they have talked to everybody, they have invested where they can. this vision fund,

the apple news plus is not doing as well as apple thought it would do.ther hand, the upgrades will be slow like it was last year. we are going to see major changes to the iphone. in 2020, i'm expecting one of the biggest iphone overhauls in company history with them integrating 5g. a design as well as beefed up augmented reality capabilities. i think 2019 will be a stopgap year. but in 2020 is when you will see new services pick up. you will see new launches plus a big iphone upgrade. think 2020 is the year investors should be excited about. emily: what is your perspective on some of these new businesses that may not grow as quickly as apple may like them to grow but would grow over time? laura: i am happy to push back on march year. everything he is talking about, a device-centric view, is what the start was valued about two years ago. and he is late sorry mark. but they have millions and millions of users, a 15% monopoly on people in the world and devices. we saw this year that time spent on mobile devices has just crossed tv. so the notion that we are

apple's earnings shine.he technology giant's sales rise even asiphone technology giant's sales rise even as iphone revenues dip. africa's fashion influencers. the social media star helping to showcase the continent's designers to the world. hello and welcome to asia business report. i am sharanjit leyl. we start with apple, because the technology giant has reported quarterly profits and revenue that beat wall street's expectations, and that sent the company's shares higher in after—hours trade, but the figures also showed that iphones represented less than half of its overall sales for the first time since 2012. the bbc‘s north america technology correspondent dave lee told me what else apple revealed.” think these earnings tell us that this is a company that continues to go through a massive transition. the iphone is a product in decline, as is the rest of the smartphone sector. people simply are not buying as many smartphones as they used to. but to replace that earnings from that device, as they have reli

here is what is coming up. >>> apples, apples and more apples. >> apple is the last of the big tech stocksarnings next week. after a more than 20% run off the lows, you won't believe where dan sees it heading next he will layout the trade >>> plus -- ♪ >> the dollar is surging

tim cook saying the apple credit card will launch in august quote, apple is not the iphone company anymorelet's bridge in two apple analysts, krish s a,ankar of co. i'll start with you. sales of iphone comprising less than 50% of overall revenues good thing or bad? >> you know, today where the stock is i would say, you know, it's not a bad thing a year ago it would have been a terrible thing obviously having better iphone sales is always good but the longer term you look at it, this is a company that's going through a transition iphone was the story for the last ten years i think the next ten years is going to be about services, so -- but those transitions do take time. it's not going to happen overnight. i think they're slowly progressing to that where you're exiting a mature hardware market to a more growth-focused high multiple services unit business. >> so amit, is that headline right to say that apple is not an iphone company anymore? >> i mean, it's 52% right, correct? at this point at least iphone units at the end of the day is what's going to drive the story, right if the install b

apple has had since the iphone.ra, does that concern you? device-centric question. doesn't bother me at all. what i care about is revenue per user and value in the ecosystem. are they adding news, movies, tv? those increase stickiness and lifetime value. watches, which creates stickiness? increaseshat stickiness to the 900 million users who are rich and global. obviously, we will still get some device-centric questions given that the vast majority of apple's revenue still comes from devices. when will that change? mark: it is not going to change. the services have to run on something. services revenue is going to devices revenue -- going to augment devices revenue. i don't think people running competing devices are going to use apple services. i think that services is not a replacement for apple's devices, it augments it. if you believe that people will subscribe to all of the major apple services, that over two years is equivalent to one year of apple upgrade revenue per user. if iphone sales slow down, that will p

i think that's where your apple arcade, apple tv plus, your apple card come in if you look at what theye designed to do, they are designed goat people to pay a subscription fee to be in the ecosystem, consume content in t plus and arcade, and then the card, part of what it does is drive people to spend more inside the apple ecosystem because they get value there i think what was special about this quarter from a financial perspective is it just took square on the things that people were most concerned about with apple. china specifically i think when i -- i was convinced that pricing was an issue for apple in the cycle even more than people thought. when they were able to, in china, get the vat taken down, apple didn't do that also, the trade-in program going. also the financing they were doing. essentially, all of those things lowering the price of the iphone they saw it go from down 22% to down four. it was technically positive in mainland china, what tim cook said that is a huge shift quarter to quarter. >> lawyer, a how do you think about the chinese market for apple? the competitio

apple -- this is part of the apple supply chain in this part of the world. lg display, nearly 8% down. optimism being shared. pegatron up by 7.2%. samsung electronics for different reasons, down 2.8%. at one state, it was the lowest level in three months. the earnings call does not exude confidence, saying the current trade war was producing all sorts of imbalances and uncertainty, which has made people delay buying chips. the margins on chips are also narrowing. let's look at pmi. it was showing a little bit of an uptick from the previous month. these large companies seeing what is going on. large company pmi. the medium-size intercourse. white is small company pmi. it was still showing contraction. that's currently the position we do have. let's find out what is going on with the latest from the american president. david: we were talking about dinner, jazz, and an angry tweet. president trump lashing out at china as trade talks resume in shanghai. he is bashing beijing for what buyalls an unwillingness to american farm products, saying china continues to r

the numbersed on they have seen from apple, apple is growing at half that rate. has grown and youtube has grown but spotify is clearly the market leader. the big question for the leader investors and analysts is how long is this growth going to continue? five years or slowdown were quickly? can they find a way to reduce what they pay the labels whether it is podcasting or other means? emily: thank you for that context. half ofyear and a searching for the home of its second headquarters, amazon chose to split between virginia and new york. shortly after the decision was made, we watched the downfall of the new york campus as local officials pushed back. since then, u.s. cities have upped the ante to try to persuade amazon to bring employees to new locations. one city that stood out was nashville, tennessee. amazon announced that its center of excellence would be moving to tennessee. asked the governor how he planned to bring amazon and others to the state. income tax and a very low business taxes. we have a tax structure that is randomly to businesses. soundly man

liz claman, waiting for the apple earnings. liz: we call it the company known as one of the biggest market drivers of all, right. charles: absolutely. no doubt about it. liz: it's preparing to unleash its latest results in t-minus 90 minutes. apple shares right now straddling the line. they have been slightly down, slightly up and right now, barely down. just by 18 cents. what are we looking for here? what will they say about the 5g upgrade cycle for your iphone? tariff disputes? services, a new shiny credit card and the coming content push that will solidly land the i-empire in the middle of stream's royal rumble. our all-star panel is gaming out the number one metric that should be moving your fingers to the buy or sell button. >>> jay powell and company's anticipated rate cut tomorrow leading the a dr. jekyll and mr. hyde situation for one of the biggest names on the street. the bullish call on stocks by goldman sachs that's giving some investors, and we here at "countdown," a little whiplash because it comes barely a week a

apple music compared spotify. apple isn't paying a 30% share of what it is getting whereas spotify is paying 30% to apple. that is where the issue is. they feel apple has the competitive advantage because they are on the same platform. are not having to spend that 30% cut. there are also arguments on the others as well. emily: following the antitrust hearing last week, they sent some follow-up questions to the company and made this statement, "i was deeply troubled by the misleading answers and statements made. it is unclear if these responses stem from the lack of preparation, purposeful evasion, or the inability of the companies to bring appropriate witnesses for the hearing." what does it mean that you've got pressure from lawmakers, the president, and from the attorney general now opening this investigation into these companies? >> what you get when you have this level of pressure that goes across washington is that you make it easier to eventually do something to the companies. you have pressure on them, you

that's what apple has been doing.e talked about that expected move after the close on earnings look at the setup in that stock going back two years here. what's significant is where it stopped this latest rally, right below the may highs. obviously a 4% move to the upside would actually take it above that, and of course you have this bigger high from late last year up about 232 so it seems as if there's still a struggle to figure out if apple's really resuming an up trend. look at it on a one-year basis, some other sectors of tech it has been underperforming a lot of these different areas it's been underperforming the overall tech sector, the software sector, that is semiconductors you see the white there, apple has struggled to keep up look at this same relationship over ten years, and you see that apple has basically built up a tremendous lead. it's only backed off a little bit, and look at these sections here when it flattened out for long periods of time, but then eventually went higher that's the setup, guys 22 h

will apple like?o see.ll have in general it's proven very difficult for them to move things out of china. they are trying to work with foxconn and some of their assemblers to do things in vietnam, malaysia, but the supply chain is so strong and different in china, ultimately, they cannot move things like iphones to the u.s. they may find ways to satisfy the government here. this is not a high-volume product, per se, but we will see what they decide to do. these when you look at companies, whether apple or google, companies that have enjoyed a tremendous amount of growth, free cash flow, have a lot of cash in the bank, you cannot help but see that the cost of doing business are going up. were they would have located in certain areas or made decisions, now because they had think about politics, they may have to do something that is more costly. is the fact that they are still growing at a healthy pace, paper over the fact that costs are rising for them? >> i wouldn't say cause are rising substantially,

emily: the gaming service, apple tv plus, the netflix competitor, apple news.hich of those are you most excited about? maribel: the health services. i think the card does more to their bottom line than it does to change the industry. in terms of content, plenty of content choices. i think a solid showing is not what will drive it. i think they need to find new revenue streams related to health or possibly something else. emily: maribel lopez of lopez research, thank you. we will be all over apple earnings tomorrow. coming up dan coats is out as , the director of national intelligence. we will find out what his replacement's plans are if he gets through congress. that is next. this is bloomberg. ♪ ♪ emily: welcome back to "bloomberg technology." some of the most well-known tech companies way down the s&p 500. some of the biggest laggards on the index. this as we wait earnings from apple tuesday. we take a step back into the bigger picture, large-cap index, the nasdaq 100 has made quite the comeback in 2019. you have a column out, do you think it is really a semi

apple stock has done well. year a number of risks remain for cook and company, including possible regulation, the recent departure of their design executi executive. the stock has done well, sigh ri cyrus, that's fine, but what are the issues for you iphone sales china? what else maybe they have up their sleep? >> there's three numbers we need to watch for today the first is apple iphone sales. 18 months ago they were two-thirds of apple's revenues, last quarter they were about 53%. will they dip below 50%? if they dip below 50%, psychologically that's probably not good for apple second is services revenue services is the growth area, tv services, gaming services. will that rise above 20% if that happens, that's psychologically good for investors. if the growth rate is high, that could be the savior of apple and the third thing is china china sales comprise about 18% of apple's sales, but they've been heading down. we need to know if they'll continue to go down. china is the third biggest market after the u.s.

and as someone who is very familiar with apple's history and the way apple has been run, this poses a-term potential, as a true innovative company. and i think jeff williams, you know, he's a fantastic executive on apple's team, but he's fantastic in what he was trained in, which is more of an operations role, and, you know, there are folks in apple who actually refer to jeff williams as a spreadsheet guy. >> right. >> so you have wonder what this also means culturally for all of the highly-trained designers within apple that will now be reporting to a quote unquote spreadsheet guy. >> but john, doesn't that also signal very clearly where the transition is going for apple? they are not into design. in the future you don't need someone like john to be there. >> i think it does indicate that apple is heading in the direction of services. the problem is, services if you look at their revenue numbers still can only account for a fairly small fraction of the business. and the problem is, and this is something i think is very important to point out, in order for apple to increase services r

for free help, call 1-800-quit-now. ♪ ♪ ♪ apple. >>> back now with new privacy concerns about apple if said "hey siri" and even if you haven't your most confidential conversations might not be so private after all. jolene kent explains >> reporter: tonight apple is defending siri and its popular voice assistant on iphone, ipad, and apple watch faces new criticism. an anonymous whistle blower told "the an anonymous whistle blower told "the guardian" newspaper that human contractors can sometimes listen to what siri hears. among the chatter, confidential medical conversations, drug deals, and even intimate moments according to the whistle blower. confirmed the story, but apple did not deny the allegation, telling us it uses the recordings to make nbc news has not confirmed the story, but apple did not deny the allegation, telling us it uses the recordings to make siri work better, adding only a very small random subset, less than 1% of daily siri utterances, are used to improve siri and dictation. but with 15 billion siri commands made every month, ten of millions could be listened tong

in terms of apple, they're not giving numbers for a reason. need to look at expectations with apple the iphone has been the most successful consumer product of all time we're talking 1.5 billion in sails. 1 trillion in revenue. >> but the market is forward looking. >> if you look at apple in terms of they need to do the same thing, it's difficult to do so we're still talking about a company that will make 15 billion to 20 billion in the next quarter they're doing fairly well but not as well as before. the forward looking, very difficult for them to find a new ifsh iphone replacement but still a company that will do well. >> regulation in the space has become topical, even though you look at the stock performances of big tech, all of them are up more than 20% year to date, brushing off the concern from the regulatory side of things. the department of justice has said they're going to start looking into practices of these big tech companies how serious of a threat is that? how much of the european model do you expect the u.s. to undertake when e

there is tremendous great with apple care, apple music, the ad store, click, click, click for me people keep under estimating the new business model wearables clock in at 50% growth for heaven's sake wiping out the watch business companies can't meet demand for the air pods, that's bad now i'm tires of that. between the wearables and service, they racked up $17 billion in sales when you throw in the ipad and mack that had amazing growth the non-iphone business generated $27.8 billion in sells. they will be a larger and larger part of the mix. the dominant part within a few years so why don't analyst get it why do price targets barely budge and anyone upgrade from holds? my theory is these analysts are the same gang that covers the stocks, facebook, amazon, netflix. apple is the slowest grower by far. if they grow at a 1 % clip, that's a disappointment. for the revenue stream, that's a loss my solution, you need to view every hardware sale as like a one-time game. hardware is cyclic l but the subscription business is like a cable company. follow with the tech analyst think about a cable

>> no, i'm still long apple. i still have my stock position i don't want to sell that and pay taxes. but i do think the quarter is going to be disappointing. i think the new service they launched is going to be disappointing. i think it's going to get very little traction. they haven't -- jony ive -- >> who cares about the news service? is that driving the needle >> it's services, it's supposed. they're supposed add more and more services. they need services to reaccelerate not that it's not growing, it's still growing. so yes, the news service is important. so look, so i think that handsets don't tell you what they are anymore, will be disappointing. i think china is an issue. so look, the stock rose not because of fundamentals. it rose because the market rose and because it's a component of every index. and with -- >> maybe it rose because in part of the fundamentals weren't judged to be as bad as some thought they might be. >> right >> and i think that's a mistake in judgment. >> i don't agree with you. i thin

apple ceo mr. cook argued that unlike your peers who run ad based businesses sm a company that -- that fundamentally is privacy oriented. do you believe that apple is a privacy oriented business? >> yes, absolutely. we believe privacy is a fundamental human right. >> well, then why has apple allowed google allowed apple to be the deferred prosecution agreement search engine and safari. >> apple has with all products focused on the best consumer experience. when it comes to search we conducted an open competition to see what did we think would be the best for our consumers. and consumers have always gone to google. and so we ultimately selected google but we make a number of options available to them. it's easy to change the default on the iphone to any number of choices including duck duck go and other search engines that perhaps have more privacy protections. >> apple charges app developers a 30% tax on in app purchases in the first year and 15% every year there after. in a statement submitted for

for apple.hey cleaned up some inventory for q2 and kind of the q3 guidance mostly reflected the new product brand into the september quarter. so i think my concern is more into the -- often we talk about the launch we expect there will be -- sell through the weakness that's why we think even in china, i think it should stabilize the sales that there was a big promotion by apple, you know -- >> just to clarify, you're saying when you made this downgrade, you were expecting for example the wearables and services numbers to be as strong as they were >> yeah, the wearables, i think they launched the new air pods, i think there was a lot of shipment into q2, q3 so that was better than i expected i think it's kind of a -- we expect after the iphone sales slowed down, the sales growth will be also slowing down. also, i think we need to point out that iphone sales also in q2 actually below consensus so i think the upside, from the earliest mostly coming from the wearable which is the airpods. >> okay. g

josh lipton has the details. >> apple reporting and besting expectations as for q4 guidance, apple seeingn 61 and 64 billion. analysts were looking for 61 billion. gross margins for the company in q3 came in at 37.6% as expected. iphone revenue $26 billions that was down 12%. keep in mind that it is less bad than the prior quarter, in q2 revenue was down also. services revenue is up 13%, but apple is quick to emphasize in a year-ago period they had a one-time litigation setup. so if you normalize from that, it's up 15% from a year ago. services margins in the quarter, 61.4%. wearables up more than 50% and mac revenue at 5.8 billion this quarter greater china revenue, 9.2 billion that's down about 4% in q2 greater china revenue was down 20% i had a chance to speak briefly with tim cook. we talked about the apple iphone franchise. people are holding on to iphones longer i did ask cook whether his company's trade-in is having a material impact on that cook said it was a key part of the improvement and that the trading and financing program were key to results in china. it was an important pa

the apple ceo. he has argued that unlike your peers, apple is a company that fundamentally is privacy oriented. do you believe apple is a privacy based business.>> we believe privacy is our fundamental human rights. >> why has apple allowed google to be the default search engine.>> apple has with all of its product focused on what is the best consumer experience. what do we think would be the best for our consumers. consumers have always gone to google. we also make a number of options available to them. is very easy to change the default. other search engines that perhaps have more privacy. >> the church developers and 30 percent tax. then 15 percent every year thereafter. spot of argues their charging attacks on inept purposes. the fourth providers to make an impossible choice. in the past the cost on to consumers or face a litany of technical hurdles imposed by apple. these complaints have been echoed by other developers. how did apple arrive at the 30 percent fee and could apple charging 30 or 4

and baking apple? red delicious fell off the popularity charts because everybody was looking for what was the best looking what happened was what they traded off in a beautiful skin meant they were getting a mealy, mushy apple with not a lot of flavor everybody wants the crisp crunch honey crisp delivers that but apparently about 25% of the apples get left on the orchard floor, ground, whatever, they rot, and so they cross it with an enterprise which kbigives yo longer lasting apple. >> i could keep going with this segment. i love this. i find this totally fascinating. >> my favorite apple which is no one else's favorite apple the is the macintosh. >> it's got a tag to it. >> thanks, i might actually take one of those deirdre bosa, contessa brewer, courtney reagan. >>> elizabeth warren says e odc asa coming economicrh. thgo news she says she knows how to stop it we'll look at her call and her plan stick around >>> welcome back, senator elizabeth warren is out with a provocative piece today. she says th

the view from inside of apple is that this has not changed.his is oni ive's design team, it's as integrated with engineering as it's ever been. i think the view from outside is, yeah, but your big idea is oprah made us a tv show. and those things have to get reconciled >> you said, there's not going to be an iphone, another ipad. i was just in shenzhen, china, with the ceo of huawei and they said they're going to create the next iphone or the next major innovation are we seeing that big disparity? are investors basically thinking that apple's, all the innovation is already there now they're going to turn to things like services is that an opening for a company like huawei, which replaced apple, by the way, as the number two smartphone seller in the world earlier this year. >> and the thing about the addressable market for smartphones, it's everything in the world. the addressable market is every single person and that's the smartphone, that's the tablet, that's the laptop. maybe that's going on air glasses, but that's a ways away. right now yo

your friends at alphabet should now try it alphabet now has more cash than apple has cash apple has done a fantastic job reducing that cash from 2017's 160 level to down to 100 the other thing is when you are looking at the iphone revenue, you probably look at this. you're right 50%, i get that. but that's probably a trough so you can see a reacceleration in iphone revenue while you get services and wearables -- >> not this year >> i have no problem chasing it here where else am i going to put my money in this market >> coming up -- straight ahead, the post-earnings trades on general electric and amd going to go around the desk on both stocks. >>> first, a sector check today as well. just ahead of the fed. the s&p waiting and watching and anticipating up 1.6%. we're back after this. lling pat. (father) kids... nge of plans! (vo) defy the laws of human nature... ...at the summer of audi sales event get exceptional offers now! tell him we're flexible. don't worry. my dutch is ok. just ok? (in dutch) tell him we need this merger. (in dutch) it's happening..! just ok is not ok. especially wh

apple's shift to services bears fruit. technology giant's sales rise, even as its iphone revenues fall. and we will explain why the numbers are doing that on the european markets with an expert later. and we'll be getting the inside track on... two—ply, quilted, patterned, embossed. what am i talking about? toilet paper. but the sustainable kind, made from bamboo. today, we want to know... as one hotel chain scraps toiletry bottles, replacing them with sustainable alternatives, we want to know, will you miss "ta keaway" toiletries? should others follow suit? let us know. just use the hashtag bbcbizlive. a bathroom theme to the end of the show, we will explain that later. starting first in the united states. we start in the united states, where the country's central bank — the federal reserve — is widely expected to trim interest rates today for the first time since 2008. the only question is, by how much? some believe it could be a 50 basis point cut, as fed chairmanjerome powell voices growing concerns about us trade tens

if that's the price apple hits, apple is worth a trillion dollars.that value, it's contributing well over 60 points to the dow industrials which are up 60 points. >>> all right. a video and it's going viral as they say. one youngster learning the hard life lesson about money while playing monopoly. wait until you see how this kid reacted when he learned how much he would have to pay in taxes. i like this kid. >>> millenials say dating has gotten way too expensive. with a lot of them saying the high costs are keeping them from finding love. believe it or not, "varney & company" is going to tackle that one. >>> the democrat candidates going after president trump at the debate last night branding him a racist. a new poll shows more than half of all women agree with that assessment. kayleigh mcenany, rnc lady, what does she say about that? she's next. (groans) hmph... (food grunting menacingly) when the food you love doesn't love you back, stay smooth and fight heartburn fast with tums smoothies. ♪ tum tum-tum tum tums with tums smoothies. all right brad

iphone, ipad, and apple watch faces new criticism. an anonymous whistle blower told "the guardian" newspaper that human contractors can sometimes listen to what siri hears. among the chatter, confidential medical conversations, drug according to the whistle blower. nbc news has not confirmed the story, but apple did not deny the allegation, telling us it uses the recordings to make siri work better, adding only a very small random subset, less than 1% of daily siri utterances, are used to improve siri and dictation. but with 15 billion siri commands made every month, ten of millions could be listened to apple responded saying siri recordings are not attached to your apple user name or other identifying information, adding that all reviewers are under the obligation to adhere to apple's strict confidentiality requirement. apple frequently touts that it prioritizes privacy. >> privacy to us is a human right. >> these technologies are really reliant on human review and continual sort of process to make the technology better >> repteit's

we look at apple's results later this hour. this is bloomberg. ♪ ♪ , i'me: live from new york vonnie quinn. guy: from london, i'm guy johnson. here's the markets with emma chandra. in the green 500 for the first time in some three days. slightly larger for the nasdaq, still shrugging off the end of those u.s./china trade talks ended without any evidence of progress. corporate earnings driving the market a little bit more over on the u.s. ge and apple leading the gains. ended without any evidence of progress. corporate earnings also having an impact in europe. looking at the stoxx 600, also looking for a little bit of direction. we saw bank earnings at the like of bnp and credit suisse that did very well, and of khoi's lloyd and l'oreal doing more poorly -- and of course lloyd and l'oreal to a more poorly. l'oreal show you -- doing more poorly. show you we spiked in the middle of the month, but now the likelihood of face the -- of 50 basis points coming down at the fed. quick look at the global bond market ahead of that fed deci

. >>> apples, apples and more apples. >> apple is the last of the big tech stocks to report earnings next week. after a more than 20% run off the lows, you won't believe where dan sees it heading next he'll lay out the trade. >>> plus -- ♪ >> the dollar is surging this year, and the chartmaster says it looks extra flossy ahead of the big fed meeting next week. he will tell you how to make it rain >>> and beyond meat is up more than 800% from its may ipo. >> i'm shocked, shocked. >> so are we but if you missed out on the run, mike khouw has a way to buy it for less. he will go above and beyond on the trade. >>> it is time to risk less and make more. the action begins now. >> and we are going to kick things off with the big kahuna apple gearing up to report next week the stock has soared 20% from its june low, and the options market expects an even bigger move after tuesday's results traders pricing in a more than 4% jolt in either direction for those keeping score at home. it is a $42 billion shift in market value with the stock down 11% from the october high. how should you trade it

apple uses intel modems right now, but the fact of the matter is apple is intel's only relevant customeris spending resources on keeping this unit alive just are apple, which from a business standpoint did not make sense. emily: what kind of advantage does this give apple in the middle of a trade war, supply chain issues, and the desire to make its own chips? >> right, so, building modems is a very intense process. it comes down to two real important things. you need as many people with the engineering background to build modems as possible. you need the infrastructure, the wireless testing environments, and the partnerships with cell carriers, and the patents. intel had to of those things. apple is getting over 2200 engineers and the patents. we saw why patents were so important given a little cold war with qualcomm. what apple did already have was the devices to put these things in. the infrastructure for testing, the technological environment to build these modems -- they open ed an office in san diego recently. emily: meantime, you're getting new dribbles from the supply chain, espec

liberty. ♪ >> apple trading up 4% after hours, suggesting demand for apple products is now stabilizinghours away from the first night of the democratic debates in detroit. former democratic chicago mayor rahm emanuel sending a warning to democratic candidates, don't make detroit's debates a repeat of miami. advising candidates tonight not to fall into the trap by following progressive trends way ahead of policy. there is one study showing the green new deal would cost households $70,000 in just the first year, transitioning to electric vehicles and high speed rail would call households $20,000. is rahm right to be concerned about how these policies are playing in ohio and michigan? >> i think he is. it's one of the things he has done right in my opinion. here is why, though. he's current in the sense it would be great to focus on real issues and things that are attainable and down the middle which will help democrats in the long run. the problem with the candidate out there and given the field is so large. the candidates need to come out with home run balls. with some of these grandy o

apple and white house has been sparring with apple for a while now. i think what this shows ongoing concerns about big tech companies that is coming from both sides of the aisle. that will not go away anytime soon. it is a cause for concern for investors. it doesn't seem to be a huge concern as you mentioned. they are driving this market. the fans are the stars of this market. that is not going to change anytime soon. >> all right. jack, veronica, thank you very much. speaking of tech. connell: twitter was great in the market, soaring following a beat on second-quarter earnings. the report, look at that stock. kristina from the new york stock exchange. up 9% for twitter. reporter: you hit it on the nose at the top. show. a lot has to do with user growth. monthly active users, daily active users up to 139 million. that is a increase of 14% compared to last year. you got an earnings beat. you got a revenue beat. more specifically revenue domestically in the united states is climbing higher. you added like you said, quite a bit on to that market cap for

he oversees the apple watch.e is in the thick of things across the company, unambiguously making him the heir apparent to tim cook, if he were to step down. vonnie: it seems daunting to position.jony ive's what background does he have there, given apple is a lot about design? mark: jeff williams is not a designer at heart. he comes from the operations side, has the product management skills necessary, so he is truly not a replacement for jony ive. apple is not replacing him, per se. he had two made the tenants who oversees the design of hardware and software products. they are reporting to jeff williams but there is no really replacement for ive. the question is who will that visionary be at the top of apple? that person has always been there, whether steve jobs or jony ive. truehere is not a successor from the standpoint of brainstorming and creating these new devices and categories. vonnie: can we tell anything about potential ideas from speeches he has given, panels he has been on, statements he has made in th