apple watch, icloud. prior tojoining apple, he apple pay, apple watch, icloud. ior to joining apple, he served as the director of north american fulfilment for ibm. he received a bachelor of science from university and mua from a school of business. last witness is mark zuckerberg, founder, chairman and ceo of facebook. he initially launched facebook. he initially launched facebook to help connect college stu d e nts facebook to help connect college students at his school more easily. since then it has grown into the largest social media platform with 1.7 billion daily active users. he attended harvard university before leaving to focus full—time on facebook. we welcome all our distinguished witnesses and thank them for participating. i will begin by swearing you in. if i do that i wa nt to by swearing you in. if i do that i want to remind you that you are the only ones from your respective companies invited to testify today. in accordance with normal house practice under section g of regulations, you are sworn testimony must be our own. please let me know if you

. >> it's not an apples to apples comparison. it's not apples to apples, dusty. >> if the governor of new york can treat the people of south dakota differently, why can't the governor of south dakota? >> okay, good question. here's the answer. because it's about the basis for the choice. andrew is saying -- and, look, you can criticize the choice. i can criticize it. but i have plans for this weekend that involve my family. so what i'm saying is this. the basis for the governor of new york with florida is, your cases are out of control and you're not doing what you need to do to control them. this is not apples to apples in south dakota because you don't have the problem with cases. let's move away from that analogy. it's cumbersome. let's deal with the specific analogy, you were correct, congressman, dr. fauci does say 80% of compliance with masks gives you a great chance of cutting down on viruses, but that means you should make them mandatory. not optional. because you will not get the masks, especially at a trump rally, if you make them opti

collect their customer data and use that data to inform apple a5 you collect their customer data and use that data to inform apple as to whether apple apple to launch a competing app, isn't that correct? 84% of launch a competing app, isn't that correct? 8496 of the apps are charged nothing. the remaining 16% either pay 15, or 30, depending nothing. the remaining 16% either pay 15, or30, depending upon nothing. the remaining 16% either pay 15, or 30, depending upon the specifics. if it is in the second year of its subscription as an example and only pays 15%. year of its subscription as an example and only pays 1596. what is to stop apple from increasing its commission to 50%? to stop apple from increasing its commission to 5096? sir, we have never increased commissions in the store, since the first day it operated in 2008. there is nothing to stop you from doing so is there? sir, i disagree strongly with that. there was a competition for developers just like there is competition for customers, and so, the competition for developers, writing apps for android, windows, xbox or playstation so we have this on petition at the developer

apple surging into the close to end the day up more than 10%. that is yet another all-time high and its best day since mid-march. apple gained 14% since monday. the best week since 2006 is apple now the king of the market brian kelly, you're worried today about opening at the highs. here we have great price action. what do you say? >> yeah. so last night and then even this morning i was very concerned that we had these blockbuster earnings from big tech and the market not responding. the standout was apple all day long and so that gave me a little bit of confidence and then you saw just continue to be strong the whole time so let's look at apple. what happened? they had tremendous earnings they have multiple cat lisalystd the services of a bigger part of the earnings is starting to take hold and argue and of course you can argue that it would deserve a higher pe ratios i find that's absurd >> and here we are what did you make of the action? >> listen. bk or beakers knocked it out of the park just like apple did macs are up in terms of sales and wearables. the service business although -- i think that was up about 15%. 258 per share. there's not much not to like i think the st

the tech trying, apple -- against of the tech giant, apple. apple has to pay the government 13 billion euros in back taxes. dublin has long denied that is -- it's tax arrangements with apple our state aid. >> the ruling has a big legal victory to apple. the eu general court said that you commission did not succeed in showing that the tech giant had a legal economic advantage in ireland. the decision is a major low to the competition commissioner. >> the commission stands fully behind the objective that all companies should pay their fair share of tax. if they give certain multinational companies tax advantages, this harms competition in the eu. >> the eu commission has two months time to decide if it wants to challenge the ruling in the highest court. the core of the problem is that the eu does not have one common tax code. officially, companies in germany have to cough up at least 30%. that alone has attracted many companies to ireland. in fact, apple paid far less tax at times. as little as zero point 005% in 2014 the tech tried pay just 50 euros

apples to apples. are you organizing this by choice. those are protests of people who in many cases are angry and outraged and were trying to keep the temperature down. we, forget about me. i cover it. you are trying to keep it down. you make the decision how the police deal with protesters on a large scale and to have them enforce a no mask policy when they're already hitting the streets because of police intervention in their lives would have been madness, it's not apples to apples, unless you are only looking at this through a partisan lens, the left, right, the protests. why don't they like our fireworks display? i think that's unfair and counterproductive. >> chris, you want to talk about political convenience. political convenience is wanting to have an entirely set of rules protesting their country hand the those celebrating it. the bottom line is people should be wearing the masks. i think a lot of them would be. >> more would be if it were mandatory. i appreciate you coming here to make the case. you always have an invitation to do so good blegod bless you and your family. media, what did you think when you saw this? the video of the husband and wife pulling out the guns when the protesters went by their mansion? do you think that you were under siege? what do you think about this reaction? should they have been afraid? i wanted to hear their side of the story? because i honestly believe this is a metaphor, for our country right now. it's no way

apple, let's think about who are apple's competitors. nobody they figured out how to create a cult following and connect their customers to every single aspect of their lives there's a reason why warren buffet has a big position in apple. we've been owners fin apple for years and years. we really can't rely solely on the traditional metrics we use to evaluate companies. we'll have to consider the time that we're in and really consider the fact that with the company like apple, no one has been a i believe to do what they have been able to do >> jon, we got you back. as i said at the out set, it's your biggest position. sell apple there's a lot of stocks out there, even some of the others of the big five and maybe the big ten, if you will out of growth tech that may be worth taking a look at to sell you don't hear too many people coming out and saying sell apple. >> no. you don't. you don't for exactly the reasons that stephen said at the top of the show. when you have something as big as 5g coming out here, scott i can't understand the call. as you and i talk all the time, when people either are afraid of holding onto a stock that can be a good thing when people decide they want to take profits, that's also a good thin

apple apple is a tremendous performer. we know it's up 26% year to date you can see the well-defined trend line in effect since the march low and the break of trend. take a look at microsoft it's really the same circumstance the socks, again same circumstance well-defined trend line in effect since the march low and now a breach or break of trend the next chart is the technology sector, the s&p 500 technology sector having a great year, of course, up 15% here too if the big constituents break trend, the sector you see here is breaking trend two more take a look at the nasdaq composite itself than the nasdaq 100 which is the marquee names, the biggest and best is this the beginning of a more meaningful giveback? the tech sector is down on a three or four day basis 6% drawdowns of 10 or 12 are perfectly normal in high flying sort of higher excitement stocks that are embraced, crowded, loved. the presumption of this break in trend is not over. >> what outperforms in tech's stead while tech is on this 10-15% pullback? >> that's a good question. what we know is that in great periods there's a lot of auto correlation, sort of all behave the same what i would be looking for are one-off idiosyncratic names that aren't tied to the aggregates. is it the tale thail that wags the dog. we saw what happened to intel today. it's picking their own favorite. i like salesforce.com. >> brian kelly, do you like any of carter's suggestion there is? >> i like service now. that stock has just been absolutely on fire crm would be another one that he mentioned in there if you want to try to hide someplace, again, if the market is going to go down 15%, almost all stocks are going to go down. but i still like these kind of cloud plays. i think they continue to do well i mean, alternatively jeff i think mentioned the staples. if we are going to get the selloff, it could be precipitated by a weaker dhaoll. maybe they get some tailwind on that that's the way i would kind of play this and hide out. >> i thought it was interesting that the chart master didn't say this sector will outperform when tech underperforms or has its pullback he said it's going to be idiosyncratic names because you don't know if this is a sign of weakness for the broader market or a sign of weakness just for this particular sector. >> that's right. i'm concerned about the cyclical trade. i mentioned that as losing momentum as its downward sloping resistance on the other hand you have all this crowding that took place in tech the question is where do you do, what do you do i think about semiconductors now you sort of know what's wrong. the stock very quickly priced in a 15% decline. now it's trading at a valuation at ten times forward earnings where the stock has been well-supported over the past couple of years. looking idiosyncratically at certain names, that may be a good strategy. i think for us and the way we're positioned, i think about our three largest holdings, amazon, apple and microsoft. but they're also our three biggest underweights relative to the benchmark. when you think about that and trying to retain some diversification. >> the context is that the nasdaq 100 along with the break and trend is sitting at a valuation that is the highest in two decades. >> so am i out of the penalty box now? >> yeah, yeah. me calling on you and allowing you to speak is you out of the penalty box. >> yes, ma'am. >> honestly, i'm a bit cautious on intel the stock has rolled over 15-16% it's broken its trend. yes, we can speak to valuation i'm not going to knock that whatsoever however, i'm going to be following the trend until i find a support level. i'm going to have to stick on the sidelines. >>> moments ago president trump signed an executive order aimed at big pharma. >>> plus, it's always 5:00 here on "fast money." what better way than to kick off the weekend than with a stock that isbubbling higher save hundreds on your wireless bill without even leaving your ho

apple state provision some apple farmers up already working on a collaborative model to support each other and mitigate the effects of climate change. it's been 35 years since by don't sing the donna starting during apples and him middle a secluded village tucked away in the mountainous state of. apples were introduced to india by the british in the late eighty's hundreds. have now taken over several slopes in this. region. over the past 10 years follows like donna have started to witness some of the harshest effects of climate change got on with. my ancestral orchard was planted by my paternal grandfather i've also put hard work into caring for these apple trees until 10 years ago i was able to harvest 600 cartons of apples now as a result of climate change and the experiencing some hail storms during the flowering season even gets cold out of season as a result our apple harvest has declined a lot of apples on the main cash crop in crush me and him and with that our kind but they are there and expensive fruit in india and families have a tough time to the to being means that autos are often scattered and remote which makes the access to a direct market difficult many also own small farms and count aff

apple. he started apple in 1978 and served as chief executive officer under steve jobs he was later named as ceo. he launched developments and products and services such as apple pay, apple watch, apple card mr. cook received a bachelor of science from arbor university and an mba from the school of business our last ceo today is mark zuckerberg, founder and chair of facebook he launched facebook in order to connect college skutudents at a school more easily since then it's grown into the largest single platform with 1 billion daily active users mr. zuckerberg left school full-time to focus on facebook now we'll begin by swearing you in before i do that, i want to also remind you that you are the only ones from your respective companies invited to testify today, and that in accordance with normal house practice and section g of the house remote proceedings regulations, your sworn testimony must be your own. please let me know if at any point in the hearing, you wish to mute yourself so you can confer with your counsel will you please unmute your microphones and raise your right hands. do you swear or affirm under penalty of perjury that the testimony you're abo

apple state for the some apple follows up already working on a collaborative model to support each other and mitigate the effects of climate change. it's been 35 years since by don't sing it on us started doing apples in him middle of secluded village tucked away in the mountainous state of. apples were introduced to india by the british in the late eighties hundreds. have now taken over several slopes and this is a good logically fragile region. over the past 10 years follows like donna have started to witness some of the harshest effects of climate change. my ancestral orchard was planted by my paternal grandfather i've also put hard work into caring for these apple trees until 10 years ago i was able to harvest 600 cartons of apples now as a result of climate change and the experiencing some hail storms and during the flowering season of it even gets cold out of season as a result our apple harvest has declined a lot of apples on the main cash crop in crush me and him much of the and with that our kind but the other day an expensive fruit in india and families have a tough time to the to being means that autos are often scattered and remote which makes the access to a direct market difficult. ma

appled state. some apple farm was up already working on a collaborative model to support each other and mitigate the effects of climate change. it's been 35 years since the buyout sing it on starting during apple's in him. a secluded village tucked away in the mountainous state of. apples were introduced to india by the british in the late eighty's hundreds. have now taken over several slopes in this. region. over the past 10 years follows like donna have started to witness some of the harshest effects of climate change. my ancestral orchard was planted by my paternal grandfather i've also put hard work into caring for these apple trees until 10 years ago i was able to harvest 600 cartons of apples now as a result of climate change and the experiencing some hail storms and during the flowering season it even gets cold out of season as a result our apple harvest has declined a lot of apples on the main cash crop in crush me and him and with that our kind but the others they're an expensive fruit in india and families have a tough time to the to being means that autos are often scattered and remote which makes the access to a direct market difficult. many also own small farms and coude afford to i

tech for arms of that size challenging beijing it it is i mean we're still waiting for apple apple hasn't made its statement yet but but the fact that twitter and facebook are already reviewing is a very big signal to talk so i think you're going to see more pushback now against china if we think about huawei we've had the way story on telecoms for so long in a way this whole area about what sort of control the chinese government can have of international. international companies when there's a different kind of different playing fields as it were between these companies and between these government controls that's coming more and more to the fore and i think it's going to be played out in hong kong china analyst for coding thank you very much. so you look now at some of the other stories making news around the world today in australia the state of victoria has announced another lockdown of melbourne the country's 2nd largest city as more than 5000000 people ordered to stay home unless going out for work doctor's eyes or medical care the law begins at midnight it will last at least 6 week

apple fans come after you on social media, bill. you know -- you're not saying anything bad about apple you're saying you made 3,000%. it had your intrinsic value targets and it's better money to be made elsewhere, right >> that's right. we're always trying to shift our assets from companies that we think are fairly valued to those we think are bargained we owned apple for over 12 years. most of the time that we owned apple, it was selling at below a market multiple. the only thing you needed to believe to justify holding it was it was at least an average company. that, for us, was a easy thing to believe about apple apple is selling at about 25 times estimates for 2022 we use 2022 estimates thinks that will be the first normal year for the economy it has to be significantly better than the market to justify this price more importantly, compared to the companies that we own or have been biuying, a company lik capital one financials sells at five times 2022 estimates. you have to think apple is worth five times as much as capital one. if you invest $100, you could buy $4 of earnings from apple or $20 of earnings from capital one. we think that's a pretty easy choice >> do you believe that valapples over valued? >> no. when we think they hit an appropriate price, we're selling them and repurposing those assets into companies we think are under values

collect their customer today, and you use that data to inform apple as to whether apple should -- whether or not it will be profit appear for apple to launch a competing app. depending on the specifics >> what's to stop apple toic inning its commission to 50% >> sir, we have never increased commissions in the store since the first day it operated in 2008. >> there's nothing to stop you from doing so? >> i disagree strongly with that there's a competition for developers just like there's a competition for customers. the competition for developers, they can write their apps for android, windows, e. box, playstation. we have fear competition at the developer side and the customer side, who went put about their frustrations with the app store? >> sir, we to no retalia i or bully people it's strongly against our culture. >> the time for the gentleman has expired. now mr. gates. >> you made the claim that facebook is an american company with american values do any of the rest of you take a different view project maven was a collaboration between google as the department of defense that google pulled out, citing ethical concerns you mad

apple should be broken up. often talk about apple things. i am not in operations directly. sometimes i have negative opinions about applee too much control over you. i thought about this one. this one that is going on right now with antitrust. i actually take apple's side on this one. why? what's the big issue? emily: the fees that they charge developers. steve: 30% and giving you guarantees on protections and security on the apps you could possibly download. when you look at what happened in the android world, i don't object to that at all. so, if there's a little app maker and apple does the same thing, everyone uses the apple one. it could be the weather or whatever. in a lot of those cases, the app makers do not build in the security protection that apple offers its customers and i believe in that very much. i don't know until i watch it. emily: what about the fact that apple just does not run the gate to the app store, the gatekeeper, but also has its own apps like apple music? is that anticompetitive? steve: i think that would be very good. emily: why? steve: why? because it would be competitive. apple would have

apple music and spotify is completely uneven. apple receives 100% of revenue from their music service and then they can use that to pay artists. spotify only get 70%. in negotiating terms with artists, appleetter position than spotify. what do you want apple to change? tim: well, two things. first of all, unbundling all of the services from each other. the software distribution service should be unbundled from the store. you can install software from the web or any other source. the payment service should be unbundled or untied from the store itself so developers can use any payment provider they want. we support apple's right to compete as a payment provider and offer their services and be as competitive as possible. they can't exclude all of their competition. two things. number one, make ios and android real open platforms or anyone can install software. the software from other sources can operate on par with apple and google's own software. two, unbundle all of the services tied into the store, distribution service, payment processing and everything else. then, you will have a level playing field for everybody that is actually level. emily: do you think apple and google should be brok

, yes apple is less than half of all of the iphones until the world but that doesn't answer the question do people already participating in the apple ecosystem locked into apple products. those would be hotly contested issues in the investigation stage and in the litigation, i would think. >> yeah, very interesting to see where that goes, if anywhere i don't think we got great clarity into that. thanks >> now for a look at the stock impact from yesterday's hearing, let's bring in the lead internet analyst at rbc, mark mahaney i understand that you were watching the hearing with us it comes ahead of earnings from the companies this afternoon which of the four companies do you think faces the biggest risk >> i think i was just surprised by how unanimous the companies were some 43 exchanges that included a lot of questions and they were generous, attacking were or critical it was a bipartisan can of whoop -- that congress opened up yesterday. that may be a healthy thing for our democracy by the way but the one that faces the great greatest argument. but i think it is valid. online it is just a challenge. all retail is working to omni channel solutions. amazon wi

government to collect that money from apple from apple but both the tech giant and the irish government appealed. early this year then irish prime minister leo varadkar and apple chief executive tim cook had an anniversary to celebrate 40 years since apple started manufacturing in r.l. and over the decades the e.u. country in the us i phone maker have both profited from the arrangement apple gets a massive tax break but it provides employment for multinational companies the favorable situation in ireland is practically unrivaled in europe at the moment firms officially pay 12.5 percent corporate tax in arland that's compared with the e.u. average of 21.3 percent officially companies in germany have to cough up at least 30 percent. that alone has attracted many companies to ireland and in fact apple paid far less tax at times for example as little is 0.005 percent in 2014 when the tech giant paid just 50 euros tax on every 1000000 euros in profit. that was the last straw for e.u. competition commissioner my creative s. here in 2016 the european commission ordered apple to pay arlin 13000000000 euros in back taxes but dublin and apple both appeal the ruling. wit

apple. in 1990 joined apple eight and served as chief operational officer under steve jobs. in 2011, he was made ceo. launchoverseen apple's into new markets, with services like apple pay and apple card. he served as director for fulfillment for ibm. he has a bachelors from wharton and an mba from duke. zuckerberg,mark founder, chairman, and ceo of facebook. mr. zuckerberg launched facebook to connect college students at his school more easily. since, the company has grown into the world's largest social media platform. mr. zuckerberg attended harvard university before leaving to focus full-time on developing facebook. we welcome all of our distinguished witnesses and thank them for participating in today's hearing. i will begin by swearing them in. before i do that, i want to also remind you that you are the only ones from your respective companies invited to testify today. in accordance with normal house practice, your sworn testimony must be your own. please let me know if at any point you wish to move yourself so you can confer with counsel. please unmute your microphones and raise your right hands. you swear or affirm

apple will close more stores across the country as cases in the u.s. continue to climb josh lipton has the details on this josh >> yeah, that's right, tyler this news coming from apple. apple will be reclosing more stores, 30 more stores closing tomorrow that will include 15 in southern california all of the stores in las vegas and georgia. remember, earlier this week apple closed stores in texas, in florida, in utah so apple has re-closed 77 stores in total in the u.s. that means the majority of its 271 stores here do remain open to some degree that could mean obviously just curbside pickup. remember apple has said they'll follow the data. if the company felt like it needed to safeguard the health and welfare of its employees and customers, that's what they're doing. back to you. josh, apple shares still up about a third of a period. the nasdaq is up nearly 1% the dow is hanging on to positive territory here. still ahead, gold is near its highest levels could the precious metals rally be a warning sign for the markets? the traders weigh in >>> beyond meat is going with alibaba. we'll tell you what it means for the beyond meat stock. much more after "power lunch." apps are

, he has overseen their expansion into new markets, the launch and developments of apple pay, apple watch, icloud, apple card and home pod. prior to joining apple, he served as director of north american fulfillment for ibm. he received a bashlor of science from auburn and mba from duke university school of business. our last witness is mark zuckerberg. founder, chairman and ceo of facebook. mr. zuckerberg initially launched facebook in order to help connect college students at his school more easily. since then, the company has grown into the world's largest social media platform with 1.7 billion global daily active users. he attended harvard before leaving the focus full time on developing facebook. we welcome all of our distinguished witnesses and thank them for participating in today's hearing and now, we'll begin by swearing you in and before i do that, i wanted to also remind you that you are the only ones from your respective companies invited to testify today. and in accordance with normal house practice in section g of the house remote committee proceeding regular lactions, yo sworn testimony m

cook, i am concerned that apple's policies are also picking winners and users in the app economy and that apple rules mean apple apps always win. mr. cook, in 2019, apple removed from the apple store certain apps that helped parents control their children's devices. do you remember what justification apple cited? >> yes, congresswoman, i do. it was that the use of technology called mdm, mobile device management, placed kid's data at risk. so, we were worried about the safety of kids. >> okay. all right. so, you were concerned about that the app basically undermined kid's privacy. but another app that used this same tool was appure, an app controlled by the saudi arabian government. do you recall apple's position on this? >> i'm not familiar with that app. >> okay. apple allowed this saudi app to remain. there are two types of apps that use the same tool. apple kicks one out and said that that was one that was helping parents but keeps the one owned by a powerful government. if that is correct, mr. cook, that apps that supposedly did the same thing, why do you -- why would you keep the one owned by a powerful go

, he has overseen their expansion into new markets, the launch and developments of apple pay, apple watch, icloud, apple card and home pod. prior to joining apple, he served as director of north american fulfillment for ibm. he received a bashlor of science from auburn and mba from duke university school of business. our last witness is mark zuckerberg. founder, chairman and ceo of facebook. mr. zuckerberg initially launched facebook in order to help connect college students at his school more easily. since then, the company has grown into the world's largest social media platform with 1.7 billion global daily active users. he attended harvard before leaving the focus full time on developing facebook. we welcome all of our distinguished witnesses and thank them for participating in today's hearing and now, we'll begin by swearing you in and before i do that, i wanted to also remind you that you are the only ones from your respective companies invited to testify today. and in accordance with normal house practice in section g of the house remote committee proceeding regular lactions, yo sworn testimony m

apple with the company's app store most likely in focus if for today's hearing. josh >> a uniquely american company that's how tim cook is going to describe apple today at this hearing. telling lawmakers that apples not have dominant market share in any market where apple does business. saying, as much as we believe the iphone provides the best user experience, we know it is far from the only choice available to consumers cook will also make the case that competition is alive and well on his app store. noting, after beginning with 500 apps, today the app store boasts more than 1.7 million, only 60 of which are apple software. as for app store fees, cook is going to push back, arguing that for the vast majority apps developers keep 100% of the money they make and that when apple does charge a commission, it's comparable to or lower than most rivals. so is that going to be enough, though, to satisfy critics listen, we know there's no doubt the app store is a power house sensor tower says in the first half of this year u.s. consumers spent nearly $15 billion in mobile apps and that apple generated more than 60% of that. and some lawmakers are talking very tough here. representative david cicilline

little higher end some of their somebody somebody will deliver you in a nice uniform your apple phone, back to apple, right to why you are home when you order it on j.d. but there could be more buying coming into baba shares, some are anticipating due to something called the hk southbound connect, that's the channel through which mainland

these apple trees until 10 years ago i was able to harvest 600 cartons of apples now as a result of climate change. storms during the flowering season even gets cold out of season as a result our apple harvest has declined a lot. apples of the main cash crop in kashmir him and with that our kind but the other day an expensive fruit in india and follows have a tough time to. the to being means that autos are often scattered and remote which makes the access to a direct market difficult. many also own small farms and coude afford to invest in efficient packing materials or transportation. and one of the biggest disadvantages in the supply chain between farmers and consumers is that it is controlled by several middlemen who eat into the income. but rather wanted the community and him to stand together rather than individually navigate an already unpredictable market. he brought from neighboring villages together with the help of a local trust. somebody. under the project as it is called small farmers are now joined of an end to end production system that includes collection procurement sorting grading packing transporting and marketing their produce. businesses and producers are from 2

users in the united states alone and with apple's ownership of the app store giving apple the ability to control which apps are allowed to be marketed to apple users you will admit power over small businesses to grow and prosper. apple is the sole decisionmaker as to whether an app is made available to app users through apple's app store, isn't that correct? >> sir, the app store, thank you for the question. the app store is a feature of the iphone much like the camera is and the chip is. and so -- >> my point is, i'm sorry to interrupt, but i want to get to the point. the point is that apple is the sole decisionmaker as to whether an happ is made available to app users through the apple store, isn't that correct? >> if it is a native app, yes, sir. if it's a web app, no. >> thank you. then, throughout our investigation we've heard concerns rules governor earning the app store app process are not available to developers. the rules are made up as you go. they are arbitrarily interpreted and enforced and are subject to change whenever apple sees fit to change. developers have no choice but to go along with the changes or they must leave the ap

apple. apple telling retail employees to work from home. this as customers are facing longer wait times and we know we are dependent on our devices right now. what do you make of this? dan: they are a barometer for overall retail, what we are seeing not just in the united states but across the world. the one thing from an investor perspective, retail is only representing 68% of sales. iphoneal going into an 12, which we believe will be a super cycle. cupertino cook and continue to lead by example, safety first. these are the smart and thessary moves, even though headline looks bad, from closing the stores, it does not significantly move the needle in terms of the actual growth story going forward. emily: meantime, you have tim cook preparing to testify before the antitrust subcommittee and a couple of weeks in d.c. along with the ceos of facebook, google, and amazon. apple and these other enormous tech companies. the i think july 27 is seminal day. investors in the street need to understand, is this going to be political grandstanding or sharper teeth going into the antitrust issues. i think it is important. i do believe investors are starting to more understand the potential risk. of course, that would be google and amazon versus may be apple. i think it comes down to going into a presidential election. this could be a more pronounced risk. right now, we think it is more fines, but it does feel like a brighter spot. environment, the strong has gotten stronger, which is great for the stocks. emily: dan ives of wedbush securities, always great to have you on the show. coming up, should more companies follow in wells fargo's footsteps and band tictoc from employees phones? this is bloomberg. ♪ emily: wells fargo is the latest company to tell his employees to remove the tiktok app from work phones. white house advisor peter navarro says even if the company

apple, -- apple, and the rest of them for some how far behind is the rest? philip: beyond the global forums, i don't think it is my world or your world, i think it is very much global. this adviceve seen on the combination of -- we talked about european champions. i do believe that europe has some inspiring entrepreneurs and some great technology. i think we will see combinations such as the classifieds from last week to create european champions to compete with the u.s. tech giants. seeart of the ability to big deals moving forward -- really depend on the money they can get to do those deals? a lot of the first quarter, we saw write-downs and loan provisioning for risky loans and m&a deals. what is the risk for citigroup and the rest of the industry moving forward in the second half of the year? >> you see a tremendous rally in credit. and also in the high-yield markets. so the five year bond market has been quite active. the leverage loan market has been slower to recover. if we look at levels today, they are tighter than they were in april and in may. we have seen a couple of transactions that have been absorbed within the market. and obviously it depends on the credit quality, it depends on the company set by ability moving forward to be resilient in an uncertain covid environment. depending on the sector, the credit quality, the risk appetite will be there. >> earlier this week i spoke with one of your rivals at deutsche bank and he said this quarter and this year we can expect $5 billion to $10 billion large-scale private equity deals coming back again now that we have some of this out-of-the-way and some of the loan markets coming back. do you think that is the right assessment, or do you still have caution in this market? is a reasonable assessment. it is a challenging quarter. we have obviously got all of this, and a lot of the world, it is vacation time, and it will be interesting to see what august delivers this year because we are in extra ordinary times. i think everyone is going to be very much focused and monitoring and working this august. a significant lbo since covid. i've it equity has a lot of cash to put to work. and there is a lot of equity infusion opportunities, whether that be sovereign wealth funds. upould agree, once you pick an activity, no doubt in the second half, whether it is the third quarter, let's see. >> what are people still concerned about? we are coming off the whole week in the u.s. where the tech giants are getting grilled, but also beating earnings expectations. what is the sentiment in europe right now about big deals? are there concerns that they can get done with the regulatory overhang? relativelythings are optimistic. against the backdrop of tremendous uncertainty. you know, we see that, we think about this crisis and how it has wereed, the initial stages bank-led lending, and we can see that has really calmed down and there is the request of liquidity for our clients. have had record volumes in bond issuance in the first half of the year. we are seeing large equity deals being absorbed in the marketplace, particularly in the united states. i think there is a level of confidence in the financing market. as i said, we advised on the ebay classifieds. ig,id cross-border with an and we advised on the telephonic 02 u.k. consolidation play. there are large deals. they are not at the same frequency, but we believe they will increase going forward. tom: thank you so much. the markets today are absolutely extraordinary. there is no other way to put it. the yield market is really original. the 30 year bond with a vengeance has come in this week .o 1.18% i have not had time to look at the negative interest rates over in europe. on the equity markets, jon kyl of on technology. he is at credit suisse. it will be a needed update at the top of the 8:00 a.m. hour. this is bloomberg. good morning. ♪ pres. trump: i don't want a delay. i want an election. but i don't want to wait three month and find out the ballots are missing and the election doesn't mean anything. i don't want to see a crooked election. this election will be the most rigged election in history if that happens. tom: perhaps more than any time in his administration, the kick yesterday off those comments expected, but are from republicans, it is extorting every. what everyone is worried about as we enter august is this gdp and this crisis. artan schenker is with us, our chief content officer -- martin schenker is with us, our chief content officer. what is stunning to me is what is not in the newspapers. not on the cover of the washington post, not on the cover of the new york times, not on the cover of berg, and that is there is nothing on stimulus -- of bloomberg, and that is there is nothing on stimulus negotiations. why is that? marty: it is because the republicans in the senate cannot really agree on what they want to negotiate about. mitch mcconnell himself admits 20 republicans are ready to vote no on any stimulus bill. so if the republicans cannot get their act together, how are they going to negotiate with democrats? tom: are you assuming with the reporting of our team that x million of americans try to get through this weekend understanding that the check cannot be cached monday? marty: i think that that is the stark truth that we are confronting, and it may debt it is made even starker by the imris yesterday, which were made even starker by the numbers yesterday, which were historic, as everybody knows. shrinkage in the context of unemployment benefits ending, and the senate going home, it is quite amazing. the last marti, for four years, president trump has had little to no opposition from his own party. why is this different, and what does it mean for the upcoming election? marty: by this you mean the suggestion to delay the election? francine: the fact that -- yeah, and the stimulus. arey: i do think that there a number of people in the republican party, the senate, who are looking at the polls and realizing if they continue to tie themselves to this president, they may lose their seats. so they are beginning to re-examine whether or not supporting the president is wise for their own personal political prospects, and that is what you are seeing. francine: is that going to increase as we get into november? more real opposition from republicans? numbers don'tpoll change, and as you know, donald trump disputes the poll numbers, but these are reputable polls. they were somewhat correct in 2016. deteriorate,nue to they are going to see that if they continue to tie themselves to this president, they are going to lose. so i expect there to be more not perhaps outright opposition, but distancing from the president. tom: i know you are on a long list for vice president, for vice president biden -- i'm kidding, folks -- but are we going to see an announcement on this this weekend? do you have any sense of the gaming on who mr. biden's running mate will be? marty: the smart money is on kamala harris. she was out campaigning. tom: i got reports, i can't remember where, that many people in the biden administration that in the biden camp are pushing against that. marty: my personal view is that it is going to be susan rice because she spent two years giving joe biden the daily security beefi briefing. --sonal bonds meet a lot mean a lot to joe biden. i think we will get an answer this week, and it will probably be linked to one of the late publications and we will see it at night. tom: marty schenker, thank you so much. an update on the noise in washington. just as importantly, the silence in washington. thunderstruck -- a dearth of news on the stimulus going into this friday morning. the markets are absolutely flat out extraordinary. you are going to ca jump condition in the nasdaq 100 that you are going to see a jump condition in the nasdaq 100. the yield spaces extraordinary. we are never get going to have negative rates in the u.s., .1093. dollar plunging. dollar weaker, euro on a tear, 1.1 853. i cannot afford to go to london. 1.31 on sterling. coming up, the goldman sachs head on foreign exchange. this will be an important exchange and timely. this is bloomberg. ♪ tom: this morning, it is nothing more than technology. the micro decisions that we each choose to muse each and every day in searching, and consuming, in being social. in 90 days, the tech giants bring to the bottom line $29 billion. 1.2 employ just under million people. tim cook says, "appleve a zero-sum approach." unemployment checks will not be in the mail for monday. yields say all. to the zero bound. good morning, everyone. "bloomberg surveillance." in london, francine lacqua. i am tom keene in new york. dan ives will be with us. what i would suggest, francine, is what we are seeing now with rates that have changed that are unsettling. euro is moving quickly. francine: euro is moving quickly, and we have had quite a lot of calls

apple is in a different league here? when it comes to data, apple has positioned itself as a company that is focused on privacy. privacy and security of its you -- of its users first and foremost. andrew: apple a different relationship with his customers and users, where you elected to join the apple walled garden. you generally have a paying subscriber type relationship. that within an ecosystem we actually opted into. and that is a different situation then is happening with facebook and google, in part because facebook and google monetize our data, not just on their own sites, but through other partner sites as well. it is much more pervasive. i do think apple has a different relationship there, and it should be looked at with a different set of principles and concern in mind. emily: meantime, the biggest contentions about apple today have been the app store and the 30% cut that apple takes from them at -- from the vast majority of assets that make revenue. in the app store, over the past couple of months, we have been speaking to the ceo of spotify, the ceo of epic games, about their concerns here as well as apple cofounder steve wozniak, who took apple's side on this let's take a listen

vaccine we could see by september or october whether we know the broader safety. >> p when you sa apples to applesit because of the mechanism, the platforms are different, trial sizes, what is the primary differentiating factor. >> it's just the way they're compared the neutralizing antibody data, so different essays and different tests and different patients who recovered from these diseases you look at neutralizing antibody generated by the vaccine versus those generated to covid-19 or the virus covid-2. it was different across the studies. >> interesting the analysts are apt to make a comparison meg, thank you. >>> vaccine or not, our market researcher with us, i thought the vaccine was the holy grail to all of this, jim. >> yeah, it -- i think the holy grail is stimulus. either government stimulus or federal reserve stimulus that's what has been pushing this market higher as far as the vaccine goes -- -- >> divide between republicans and democrats is a huge divide when you say holy grail stimulus how much stimulus do we need. >> let's keep in mind how tim timmonsstimuls -- stimulus is go work

appled state provision some apple follows up already working on a collaborative model to support each other and mitigate the effects of climate change. it's been 35 years since by don't sing it on us started growing apples and him middle a secluded village tucked away in the mountainous state of. apples were introduced by the british in the late 18th hundreds. have now taken over several slopes and this is a good logically fragile region. over the past 10 years follows like donna have started to witness some of the harshest effects of climate change. my ancestral orchard was planted by my paternal grandfather i've also put hard work into caring for these apple trees until 10 years ago i was able to harvest 600 cartons of apples now as a result of climate change and the experiencing some hail storms during the flowering seems that it even gets cold out of season as a result our harvest has declined a lot apples on the main cash crop in crush me and him much of the and with that are kind but they are there and expensive fruit in india and families have a tough time to the to being means that autos are often scattered and remote which makes the access to a direct market difficult many also own small farms

should look for or is it really not apples to apples seeing what's happening in this country with covid? >> unfortunately, poppy, it's not appless. for a simple reason. we have a lot more virus circulating here in the united states. so, you know, 2 to 4% of a very small number of a hundred new infections a day is going to be 2 to 4 infections a day. when you're starting to look at some of the states when you get thousands of new infections, diagnosed infections a day, this impact of schools may be much larger. shutting down schools may have a greater impact as a result. every community has to evaluate this side by side. i live in georgia. numbers have been going up steadily. i'm going to spend time with my school administrators to get a better idea. what is the plan here. is georgia going to be different than new york, for example. where you are. >> yeah. >> the communities have to be taken separately and evaluated by the total number of new infections. >> every single parent has to get ready for a start/stop fall and winter. they're in school one day and not the next day. that's hard to do when it comes to child care for worki

corrupt corporate leadership class in america i'm thinking particular people like tim cook and apple. appleas pledged over $100 million to fight for racial equality since the a death ofu george floyd. they have paid lip service to racial equality, but they've done nothing to address the business practices and the policies they support that hurt the black worker, specifically off shoring jobs to china and importing low wage labor that competes with black americans. >> tucker: racial equality means colorblindness under the law. that the u.s. treats every american as citizens. not the product of their genetics. init seems like the promise of america, the message of martin luther king. i haven't heard a single person say that in i can't remember how long. why is it hard? >> it's hard because what the social justice warriors areau trying to do is cancel america. what we know if we look back at our american history, despite the fact that we have sins in our past, we also have a great tradition of justice and equality that goes all the way back to the declaration of independence and the work of gr

apple's footsteps. still, nonetheless, they are showing that everyone is basically doing the same thing. so why aren't we going after apple? emily: what does appleto say about the fact that it is not only the gatekeeper, but it is also a competitor in the app store? they also have got their own apps in the app store, like apple music, which as we know, the folks at spotify have made quite clear. mark: i mean, apple's argument is that the app store has not held back spotify, but has instead let them basically become a giant public company. far morethe way, sells subscriptions than apple music. so there argument is that the app store has done pretty well for spotify. so it is not really a great argument to say that apple is hurting by operating the store while also being on their. -- there. tole doesn't have a 30% tax pay anyone because they operate the store. that is what some developers and competitors like microsoft and spotify has indicated to be unfair. emily: obviously, monday, we have got a big day. you have tim cook, mark zuckerberg, all preparing to testify. what do we know about how the hearing is going to proceed and how it might look d

cook, i am concerned that apple's policies are also picking winners and losers in the app economy. and that apple rules mean apple apps always win. mr. cook, in 2019 apple removed from the apple store certain apps that helped parents control their children's devices. do you remember what justification >> yes, congressman -- congresswoman, i do. it was that the use of technology called mdm, mobile device management, placedded kids' data at risk. and so we were worried about the safety of kids. >> okay, all right. so you were concerned about -- is that the app basically undermined kids' privacy. but another app that used the same tool was appture, owned by the saudi arabian government. do you recall what apple's position was towards this app? >> i'm not familiar with that app. >> okay. apple allowed this saudi app to remain. so there are two types of apps. they use the same tool. apple kicks one out and said that that was, one that was helping parents but keeps the one owned by a powerful government. if that is correct, mr. cook, that apps that supposedly did the same thing, why do you, why would you keep the one o

apple. he joined in 1998 and served as chief operation officer until it under seized jobs. in 2011, mr. cook was named ceo. while apple, he's overseen expansion into new markets, wanted development of products and services like appleauce, ipad, apple card. he served as director of north american fulfillment for ibm prior. he received a bachelor of science and mba from duke university, school of business. mark zuckerberg, founder, chairman and ceo of facebook. he initially launched facebook to connect college student at school more easily. since then, they've grown into the world's largest social media platform with 1.7 billion global daily active users. he attended harvard university before leaving to focus full-time on developing facebook. we welcome all of our established witnesses and thanked them for participating in today's hearing and i will begin by swearing you and and before i do, i want to remind you you're the only ones from your respective companies invited to testify today. according to normal as practiced in section g, the preceding regulations, your sworn testimony must be your own. let me know if you wish to mute yourself so you can confer with your counsel. please unmute your microphones and raise

josh >> tyler, apple just now announcing new features for apple news and apple news plus here are the features. they're going to include audio stories of some of the best feature stories from apple news, in other words, audio versions of some of the stories published by, for example, essence, fast company and gq this is something others are doing, too, by the way, like the "new york times" which bought autumn, the audio app. interestingly, remember, the "new york times" recently pulled out of its partnership with apple news there will also be a daily audio news briefing hosted by apple news editors and curated local news starting in five regions. apple news, we know, has 125 million monthly readers. the company does not break out users, though, for apple news plus the subscription costs $20 a month. one user says apple news is not important in and of itself but it is part of that bigger, broader strategy for apple finding services to build and monetize guys, back to you. >> thank you very much, josh josh lipton. >>> when we return from retail traffic to traffic congestion, the data an

apple for being absolute monopolies. i spoke to tim sweeney earlier today. the market is google and apple. those are your two choices for mobile platforms. apple if you don't like our platform, use google. google says the converse. these companies are using control of the operating systems to exercise monopoly over all comers conducted between consumers and businesses. apple says, if you build an app for our platform, first for, you can only distribute it through their store. imagine a town that only allowed target, disallowed any other stores from owning anything. that is totally un-american and uncompetitive. that is exactly what apple does. a semi-openreated platform with android. the software is open platform but then they layer on all of these business terms with the google play store and google search, which force all of the carriers making devices to lock it down and limit it. apple and google are taking 30% of all revenues for comers. they are deciding which kind of apps you are allowed to build and which kinds you are not. they are preventing entire categories of innovation. microsoft is creating this incredible cloud service where yo

] >> requires all app developers to use apple's payment processing system if those developers want to sell their groups of services to apple users through apple'spp store. correct? >> that is correct because -- >> and by processing payments by apps that you allow into the app store, you collect their customer data and use that data to inform apple as to whether apple should, whether or not it would be profitable for apple to launch a competing app. isn't that correct? 84% of the apps are charged nothing. pay 15aining 16% either or 30, depending on specifics. if it is the second year of subscription, as an example, it only pays 15%. fromat is to stop apple increasing its commission to 50%? >> sir, we have never increased commissions in the store since the first day it operated in 2008. >> what has stopped it from doing so? >> i disagree strongly with that. there is a competition for developers, just like there is a competition for customers. so the competition for theirpers, they write apps for android or windows or xbox or playstation, so we have fierce competition at the developer side and the customer side, which is essentially so competitive

apple is getting more than a 6% boost it's huge on top of the size apple already is what's the outlook what did you get from the call as far as the next upgrade cycle, how much demand and what kind of product we're looking at coming out of apple. >> apple's results and outlook show that all their products and services are selling very well from the range of the iphone to the apple watch to the air pods to the max and pcs things are selling now, what's interesting is they did mention a few week delay in their new iphone launch, which will be 5g we expect it to be available for purchase in the month of october. when we look at forward-looking even though the stock is up today, we see several reasons why the stock can trade higher notably, a new and exciting product launch in the second half of the year and many people might think do people have enough economic disposable income to purchase these new products and the recent results from this quarter were they materially beat sales and earnings show that people are allocating their discretionary income to things like computing and technology, and we believe that there is more room to grow here for the stock price. >> i want to hear about the potential for share gains i think that

super easy they have everything from carmel apple so candy apples and get this i even just heard about a blue raspberry apple pablo heard of that sounds delicious smell like a blue blue jolly rancher but i'm about to try a corn dog in a minute, but let's just get to our interview year this is a lady hendricks with marin county. >>tell me how exciting is it to have your drive through open in these such in these times we can have a fair. >>this is the ultimate substitute if we can have the full year in county fair then we at least need to offer our residents that fair food experience that so many people come to the marin county fair to enjoy whether it's that quintessential corn dog or the funnel cake and everything in between so we're hoping to bring a little light levity and food love to marin county and as i said you don't even have to get out of your car, it's really safe. >>absolutely we've been working very closely with more and public health to make sure that our vendors and our staff are following guidelines and we're going to ask the same of our customers all they need to do is pull up in their car. t

the younger generation is really way more apple centric than the older generation and this plays very strongly to apple. these are kids growing up with apple products all of these that are now being used as tools at home for driving education needs and apple is under penetrated. if you look at the market shares to apple, relative to the total addressable market, it is still ty ti tiny so there is just a lot of opportunity for share gain and the demographics are truly in their favor. education is one big opportunity. i think enterprise is, you know, they made some smaller references, but enterprise is another opportunity for apple. you still have a company that is a massive product lineup they have a pricing umbrella that if they want to they could flexion to some degree and they could become even more competitive in the marketplace it is a tremendous opportunity for them >> yeah, we never even got to the integration. 6%, almost a 7% ingraduatitegra, hard to ignore >>> pelosi and meadows bringing us up to speed on the progress on the hill. >> yeah, dualing briefings now on the leaders of both ends of pennsylvania avenue. bad news if you're

apples for up to a year. non-local storage means apples can only be kept for 3 months but with oxygen and an increase carbon dioxide concentration level these apples will last longer they've also begun making and marketing other products from the fruit together to produce weakest. as the farmers on profits they begin paying back investors and the economic all of ship of the company gets transferred to the farmers. with diameters hope that the end die of business will be 100 percent farmer owned. since the apple project was introduced some farmers have doubled their income like donna. these days trying to team picks up the fruits from the farmers and it does all the arrangement if that. was a really good price buy them you know accordance with that is market rate and all of this while sitting at home on the keyboard we were able to send our children to better schools and they were definitely changed. the apple project has reached 7000 farmers across 90 villages in the traditional apple growing regions of the indian himalayas. together they now call on 43 percent of the venture slowly empowering an agrarian community that doesn't always get its do.

meeting, the conditions, yes. >> apple requires all app developers to use the payment processing system if they want to sell their goods or services to apple users through apple's app stores, isn't that correct? >> that is correct. >> and by processing payments for apps, that you allow into the app store, you collect their customer data and use that to inform apple as to whether apple should, whether or not it would be profitable to launch a competing app. isn't that correct? >> sir, 84% of the apps are charged nothing. the remaining 16% either pay 15 or 30, depending on the specifics. if it's in the second year of a subscription, as an example, it only pays 15%. if you look -- >> what's to stop apple from increasing its commission to 50%. >> sir, we have never increased commissions in the store since the first day it operated in 2008. >> there's nothing to stop you from doing so. >> no, sir, i disagree strongly for that. there's a competition for developers, just like for customers. so, the competition for developers, they can write their apps for android or playstation. so, we have fierce competition at the developer side and the customer side, which is essen

apple's recent rally puts the firm in a conundrum. while concerned about new highs, buy rate, boosted price target to $400 a share to $380 a share. the firm saying apple should continue to offer upside to investors plus deutsche bank sees prospects of v-shaped recovered in apple sales, phasing out a bit, driving the nasdaq to record highs as it is again today. still ahead, brooks brothers joining the growing list of retailers filing for bankruptcy in light of the pandemic we'll ask former macy's ceo terry lundgren if he thinks the sector is enforceable with so many sectors we mange. a check on bonds, holding steady, 10-year yield trading 0.655. we'll be right back. >>> welcome back, dow is up 152 points time to get cnbc news update with sue herera. hi, sue. >> hello, sara, hello, rve body. here is what's happening this hour another state reporting record coronavirus cases, tennessee with 2500 new infections bringing its total to just short of 56,000. disney releasing some new details on safety precautions ahead of disney world's reopening on saturday. all guests must make reservations to enter the park and they will have their temperature taken and everyone age 2 or older will have to wear a mask here is a possible look at the new normal a baseball team in ja

apple device and ready features or services would be experienced and consumed on an apple device. in the app store's more than ten year history we have never raised the commission or added a single fee. in fact we have reduced it for subscriptions and exempted additional categories for the apps. iam here additional categories for the apps. i am here today because scrutiny is reasonable and appropriate. we approach this process with respect and humility. but we make no concession on the facts. what began as 500 apps is now more than 1.7 million. 0nly as 500 apps is now more than 1.7 million. only 60 of which are apple software. if apple is a gatekeeper what we have done is open the gate wider. we want to get every app we can on the store, not keep them off. the app store economic contributions are significant. the ecosystem is responsible for 1.9 millionjobs in all states and it facilitated 138 billion of commerce in the us in 201911. i'm sure the committee does not believe that competition promotes innovation, that it makes space for the next great idea and that it gives consumers more choices. since apple was founded, these things have defined us. the first new app what opportunity and possibility into the phone, the ipad help musicians and artists share creations and be paid fairly for it. this legacy does more than make us proud, it inspires us to work tirelessly to make sure that tomorrow will be even better than today. thank you very much. i look forward to responding to your questions. thank you, mr cook. mr zuckerberg is now recognised for five minutes. thank you. before i begini five minut