we'll see what elon musk has to say about that. >> i'm sure elon musk has been looking for years. he owns the stock. he owns a lot of the stock in solar city. phil, jump back on. update us as you have developments. the big news here, the deal tesla for solar city. grasso, you were mentioning key levels here for tesla, now down by about ten bucks. >> you look at the 200. if there's 205, you look at # 00. 190, below that, 171 is another retracement. you can't judge this in the after-hours trading. it looks like it will bob and weave between 190 and 205. >> i meant 10%, $20 is the decline there. it's interesting to see some of the impacts that we're seeing in the after-hours session as far as the other solar names trading higher on the back of this news. not that they have a cousin that has another company that can buy them. first solar up by 7% right now. >> it's rallying on stuff that's probably not going to affect them. now you get the opportunity to in a depressed space where you've seen it. karen's point is spot-on. this is a guy that's a genius, way ahead of his time. he's had

. >> elon musk doing a deal with elon musk. tesla. whe we have someone who says both companies are doomed. >> and on whether the uk should leave the european union is tomorrow. we're live in plond london and bringing you the latest poll results. >> and apple involved in a patent fight in china over the iphone 6. but the status of the company that holds the chinese pat nlt may actually surprise you. we have new details on that. >> and a rare interview with vice ceo shane smith. we'll play that for you coming up. >>> starting with this story of elon musk's tesla making the bid for elon musk's solar city. phil lebeau has the latest comments. >> take a look at shares of tesla and what happened once they announced this deal yesterday. and what's happened today with shares of tesla once the second -- solar city bid was announced. there you see it right there. down more than 10%. when you take a look at this deal, what a lot of people are still trying to wrap their heads around is why this has to happen. why are there synergies there. solar

elon musk goes 22.5% of the flow.ent the whole day went to the upper left to the bottom right, it was the most damning thing. it appears investors, not just you, don't think it's going to happen. is this the sort of thing -- >> you know what? for musk to say the word no-brainer is an actual insult to investors. in anything else, this actually makes people who are his supporters question his judgment. yes, it is a brainer. that being said, i saw sentiment changed today amongst the pundits and people who discussed tesla, as you called it teslanarians. >> in terms of your tesla view, i know -- it was a few months ago when it was trading 180 or so, here it is back to probably when you started talking about it. where does tesla go? in your world, as you view elon musk and his companies, tesla specifically, where can the stock trade down to? >> this is going to sound crazy. if you ask bob lutz, an auto executive, he will tell you it goes to zero. if you ask someone who just looks at business, go to a business school, they'l

elon musk said this was a no-brainer.eemreholders do to agree, why is this a good deal for tesla? musk owns 20% of solar city. is elon musky it interest versus shareholder because he is the biggest shareholder. a lot of the investors we have spoken to in tesla are unhappy about this plan because they think it distracts the company from its number one goal which should be, as you well know, to boost production of model threes, they have half a million orders for this new car, the more affordable tesla and it will be difficult hurdle to achieve. this kind of takes their eye off the ball. elon musk, on the other hand, says this brings everything under one roof to a tesla customer, you want to be driving and environmentally friendly car, you want to be using a battery to store the power of that car and you want to be charging the battery with handles on your house from solar city. he is a visionary but first you have to make the car before you have the car with the house, will this help them make the model threes? it helpsann

coming up, elon musk makes his latest play.esla offers to buy a rooftop solar company where his cousin is ceo. does the deal makes sense? he will discuss. daily on million instagram. more than doubled. we sat down with the ceo of instagram to talk about unprecedented growth. and 10 sent it to become a global player. and can china's largest internet company become a global player? they will pony up nearly $9 billion for a stake in tencent. elon musk is the largest shareholder of tesla and solar city. musk is the largest shareholder of both companies. says the proposal is in the range of $50 a share. onarcity shares closing up wednesday. tesla ceo elon musk said the basic message is there is a huge opportunity to have a highly integrated sustainable energy company. that answers the whole energy company from storage to transport. solar city is surging in after-hours trading on the news. for more details, i want to bring in our editor-at-large, cory johnson. cory: they want to cover everything from the creation of energy to exxon m

emily: you have spoke to elon about this over the years.re do you agree with and where you disagree? >> everything in our world is a computation. a form of mathematical complexity. whether you think of the world or you think of the world is fractal. everything is a mathematical construct. everything is exchangeable as a simulation. may bemmersed in what different than living in a single reality. that is where the philosophical questions come into play when you think about virtual reality. how does your brain that know anything other than what is being put into it? emily: does it matter? >> it might. it certainly motivates people with late-night conversations. emily: miller said if we are living in a simulation, we can turn it off and we realize we're living in a simulation. thank you as always for stopping by. i appreciate you joining us. >> said that is when neil breaks out of the matrix, right? emily up next, was the : microsoft-linkedin deal just because of the iceberg? we are live from the bloomberg technology conference here in san fra

about the you long-run -- elon musk saying this is a no-brainer.hard to disagree with the consensus that this is a confusing deal, so i would disagree with elon on this one. vonnie: he has been putting a lot of money into battery technology. is it contradictory to also be backing solar? guest: it is separate and distinct. we need to look beyond the fray what is thed ask board at tesla doing? what are they trying to fix? to do a not looking favor for solar city. we think they are going out and trying to find a way to fix power wall consistent with their investment in batteries, but this has been a highly problematic product and they are looking for a solution. they had a recall on the seven kilowatt unit and prices doubled from the original announcement. if you look at customer complaints about things like fan noise, it tells us that it is a very immature product. they really need to fix the power wall and to be successful, they need to fill the giga factory. importantwall is an part of that. and if they think they are going to do it by buying solar

and elon musk is offering to buy his own solarcity and is it a buyout? a sell oout? we will discuss what it means for both companies. and you will hear what jim chanos has to say about that deal. remember, he is short both companies, and you will hear from the reaction from mr. chanos exclusively on the "halftime report." and plus, mcdonald's is getting a downgrade today, and as one firm said buy yum instead, because it is the call of the day. a lot is happening at the last minute. kayla, we will see you shortly. >> all right. sounds good, scott. see you then. in the meantime, twitter's allan bain has gotten the chief operating officer title here since we spoke to him here last years, but much of the to-do list is the same, keep creative to grow revenue and help jack dorsey to right the ship. when we sat down this morning in cannes, we talked about that and the company's video initiatives, and what is in the pipeline. take a listen. >> we made a series of announcements this week around video, and we are excited about video, because video is great for people on twitte

emily: you have spoke to elon about this over the years.re do you agree with and where you disagree? >> everything in our world is a copy tatian. computation.- whether you think of anything as a mathematical construct, everything is exchangeable as a simulation. beng immersed in one may different than living in a single reality. that is where the philosophical questions come into play when you think about virtual reality or a simulated world where how does your brain know anything other than what is being put into it? emily: does it matter whether we are? >> it might not. it certainly motivates people with late-night conversations. emily: miller said if we are living in a simulation, we can turn it off and we realize we're living in a simulation. always for stopping by. i appreciate you joining us. up next, was the microsoft-linkedin deal just because of the iceberg? we are live from the bloomberg technology conference here in san francisco. stay with us. ♪ emily: this is a special edition live from the bloomberg technology conference in sa

carol: elon musk is hungry for batteries.e toast of instagram. ♪ david: welcome back to "bloomberg businessweek." neutrality toat unlocking iphones come the legal system is try to keep up. in the u.s., congress is deadlocked. the law catches up to technology very slowly. incumbents want the law to favor them, technology companies gradually get more powerful, it is hard to get a compromise. that make good decisions but you have this patchwork of precedents, it is very confusing. david: i think back on the recent case involving apple unlocking iphone and how that law dated back more than a century. what they were grappling with here. notite the fact that did work itself out in the courts, they were people who wanted a precedent to come about. >> both sides one of the precedent to help them. , the principle is as old as the constitution. how does it apply here? -- peopleour phone should be secure in their papers. how does that apply to your phone? this is on your phone, i have your phone. but if i have your phone, i just have ph

and that's according to elon musk. his comments straight ahead. right now ♪ i think it's going to be a long long time ♪ ♪ touch down brings me round again to fine ♪ ♪ oh no no ♪ i'm a rocket man. >> no. good morning everybody. back welcome to "squawk box." i'm becky quick. joe kernen and steve leisman. andrew is off today. let's look at u.s. equity futures that the hour. things are flat. dow futures down 3.5. s&p down is. the nasdaq down less than 1 point. overnight you saw a little strength in asia. the hang seng was up almost half a percent. the shanghai up .4%. you saw the nikkei pull back about 2.3% after shinzo abe decided they will not be going ahead with this increase in some of the consumption taxes. been planned to increase from 8%

tesla's move to buy solarcity has moved some eyebrows, especially for elon musk.hat an nouncement. ♪ alix: one of the most bullish analysts on tesla joined those that criticized elon musk's proposal to buy solarcity. less asterisk take than his analyst peers in more than a year. the looks for $245 a share, a percent below the analyst in the bloomberg survey. joining us from houston to discuss the deal is professor of finance at the university of houston. craig, you are a very big critic of this deal as well. what is your biggest problem with it? craig: it makes no economic sense. you have two companies that are bleeding cash at a horrific rate. during them together is just going to make the problems worse. in particular, solar city is in a bad way the entire industry is in a bad way. ising that burden onto tesla very negative for the company. what's more, the justification given for the deal is the most laughable. talking about synergies that don't exist and vertical integration that isn't vertical integration -- that also raises suspicions about what the real jus

elon musk and jeff bezos soungd off on their intergalactic goals.k says why his company will send people to mars even before nasa does. >>> plus, an exclusive interview. we're going to get his take on mergers, deals, ipos and work/life balances for their junior bankers. >>> a lot to get to. let's get to "closing bell." with the down 25 points, joining us today, wasif latif, and brenda. keith bliss from cuttonen company. he's at the post 9 stock exchange and rick santelli checks in from chicago. keith, we have the jobs number tomorrow. if it's a strong number, do you believe the good news will be good news for your the stockmarket? >> i believe it's stuck where it is right now. we're 34 points from the all-time high we achieved last may. when you look at the charts on the nasdaq and s&p, we're back to the april highs we achieved. if we barack through those, we should be a little higher. i don't see the stockmarket having a catalyst whether the stork market is good, bad, or indifferent. i think a rate increase is off the table for them. i think the st

best: elon musk is a guy known for taking on impossible tasks.hat may not be enough to can and some that not a good idea, now?hy both if you go back, stocks were flying high and both companies were burning cash and shareholders did not seem to 's case, theesla stock is still rated high. solar city can say the same. strategy,ivid on its it has been dropping quite dramatically and it doesn't look like they can raise the capital they need. in pains tocall was point out that everything was fine at solar city and they could raise money if they needed to. the question you have to ask lowself is this is a very priced bid compared to solar city's history. if they really were fine, why would they go for this deal? it will be telling if they recommend this deal because it would be a sign they have lost faith in their own future. the free cash flow burns are so disconcerting because it just this company wouldn't even survive or would at least have a lot of risk if the markets are not open for them. emily: thank you both. up, the ipo market gets a test after

or elon musk's spacex. although that is more successful.it is funded, or motivated less by profits then that is by changing the world, creating a new may be fit -- new may be safer form of transportation. these are ultimately going to have to be businesses. silicon valley and folks like larry page have the fortune of having a lot of resources and being able to expend some of them on these childhood visions. sheelah: turning these stories into eye-catching visions is the creative director -- --we came up with the simple having an artist rendition of what it will look like. we did have access to the actual funding.larry page is we thought of the facts are that all these idea started in people's imagination at some point. we reference that kind of aesthetic. we went with the simplest form of what a flying car could be. >> there are a lot of interesting elements around it. up with that baby. >> there is a baby inside the issue. there's a man in new zealand who is helping a cheap incubator in his garage. >> and what about over here? are these al

rlet: you talked about elon musk and his attention being between two companies. could affect them where they are not able to have a dealership. solarcity, and then, by the way, here is our tesla s or our model 3 car, and then go online and not sell it in the store. alix: it was exciting. jamie butters, thank you, and tune into betty:'s new show. she will be joined by angie lau. you can watch on bloomberg wherever you are, mid net in london, 7:00 p.m. in new york. she is everywhere you want to be. scarlet: are market roundup is next. you have got the dow and the s&p lower. trading in a pretty narrow range. this is "bloomberg markets." ♪ ♪ alix: this is "bloomberg markets." i am alix steel. scarlet: and i'm scarlet fu. joining us is joe weisenthal. alix: there is the pound and the s&p mini futures. thisa look at this, and kind of describes what happens today. around 11:30, we got a new poll was shows that one camp getting a little bit of steam, and you saw the pound index fall. that is that white line, and s is the s&p mini other, and then they moved in tandem at t

ian: i would argue that it's never smart to bet against elon.mily: okay, it's not something we haven't discussed at length, but quality problems with the cars. one of our analysts believes are undercovered. ian: i know a lot of people with tesla's and they are all 100% happy with them. i don't have any first-hand reports of any troubles so far. emily: where do you see tesla in five years? ian: i don't know, it's really hard to say. emily: but you are not betting against elon? [laughter] ian: no, i'm not. emily: the tesla cofounder -- thank you so much. thank you so much for sharing your story with us. david kirkpatrick is my cohost for the hour. you are sticking with me. now to a story we watching -- softbank says it will sell $7.9 billion of its share in alibaba to pay off its debt load. it's the first time they sold any shares in the chinese e-commerce. in a statement, they sell about $2 billion in shares back to alibaba, $400 million to those in the partnership. another half $1 billion would be sold to a major sovereign wealth fund. however,

so there is a lot of concern one elon musk company is bailing out another. remember, neither makes a profit. musk talked with analysts and reporters for quite a while. normally, he's a very confidence ceo. why shouldn't he be? he's a modern day edison. he was rather repetitive and kind of directionless on the phone as analysts continued to pepper him with questions. many are concerned tesla ought to stick to its knitting. more cars have been pre ordered than tesla has shown it's capable of making every 84. programs now the not the time to buy a largely unrelated company. solar city sun run here has been a disaster on the marks. is unrun and solar city pulled out of nevada, tax breaks and rules changed there as well. we will continue to watch this all day. solar has been so unsettled. a lot of investors have been shorting the stocksing making it a dangerous, but lucrative bet. muck's announcement, tesla will pay a premium left holders in a panic. . >>> let's talk about the other big story. brexit, photos of the line at the bay area's first dunkin' donuts, ope

elon musk's countries as is another executive. tesla ceo sits on solar city's board as well t. big concern is tesla doubts that they can make the model 3 cars pre order him. tesla had to go to the finance well a couple of times, to be fair, it won't cost them money. it's all stock. we say it's a $2.8 billion deal. it won't be, tesla's stock is worth so much less. the price continues to drop this has the making of the worst ideas and from net flicks said it would split into two companies. >>> the columbus dispatch, the newspaper in columbus, ohio, reporting this morning, u.s. transportation secretary anthony fox will announce columbus, not san francisco, is the winner of the smart city competition and will get millions of federal dollars to test autonomous cars, build electric chargers and other cool stuff. it's a bummer for the bay area. they wonder if ohio is a swing state. >> we're not saying. we're just pointing it out. >> columbus ohio. >> right. >> futuristic cars. >> futuristic things. >> the buckeyes, they got great football over there. >> all those people from columbus

tesla ceo elon musk says he knows who his biggest competitor will be and it's not another car company>>> we turn to landon dowdy live from cnbc world news headquarters. >>> wall street coo start the day in a holding pattern. futures are slightly lower and markets bounced back from early losses wednesday. this dow nasdaq managing small gains rising for a sixth straight session. the nasdaq up four points to 4952. federal regulators are clamping down on pay day lenders because borrowers need protection from practices that often turn into debt traps. the agency is proposing they prove customers can repay the money without having to repea d repeatedly take out loans. >> elon musk thinks apple will get into the car business speaking at the annual tech conference. he believes apple will be a direct competitor with an electric car that could go into production by 2020. musk says apple will probably make a good car and be successful, though apple hasn't confirmed it is actually working on a car. >> provide tunes to the i car. that would be neat to see. thank you very much. >>> 4:52. nature up

and first, elon musk making a ton of headlines, and this is what he said about the rumored plans to getthe car business. >> i think that they should have worked on the project sooner actually that, but i don't know -- i don't know, that they don't share with me the details of the production plans. i don't think it is going to be -- and i don't think that there is going to be any volume production sooner than maybe 2020 is the soonest. >> all right. so we have two questions. one reflections on what musk said to you last night, and two, what are the big fat narratives that people should walk away with this? >> and which part, because he said so many thing, and in the end, we are in a simulation. >> and yes, it is like taking the s.a.t.s at 10:00 p.m. at night. he went everywhere and incredibly smart and nerdy and geeky, and super futuristic. >> and a/i is a big issue here. >> and we had a lot of conversation about the a/i, and he is very worried about it. he said things that none of us, and we talked a lot about the a/i throughout the conference and we can discuss that, but elon musk was

coming up, elon musk makes his latest play. tesla offers to buy a rooftop solar company where his cousin is ceo. does it make sense? we will discuss. sat down with the ceo of instagram to talk about unprecedented growth. can china's largest internet company become a global player? nearly $9pony up billion for a stake in tencent. the largest shareholder of tesla and solar city. $50 aosal in the range of share is in the works. shares up on wednesday. musk says the basic message is that there is a huge opportunity to have a highly sustainable energy company. is surging in after-hours trading on the news. for more details, i want to bring in our editor at large, cory johnson. y: they want to cover everything from the creation of energy to exxon mobil, maybe. this is a strange thing. in one companyng to bailout another company that has fallen substantially in the last year. just a look at the numbers shows how crazy this is. if you look at the cash tesla has on hand and throw in the debt, you have a company that cannot afford solar

sam: in 1976, elon musk was one year old. sheelah: a wee boy barely standing up. at that point, engineers realize that electric propulsion could be a reality sometime in the future. i'm sure elon would say his work is based on all of the work before him, including those engineers at bmw and other companies. sheelah: i am intrigued by the fact that both of these companies grew up around the same time and in the same place. i was wondering what you thought about that? i mean, is there something about german culture that contributed to this? is this, you know -- surprising that this happened? sam: it makes some sense to me. germany has had a long-standing scientific and engineering tradition that goes back centuries. they also have an enormous number of universities. you know, you don't hear a lot about them. there are not just one or two huge ones. they are everywhere. the opportunity for people to learn about physics and chemistry and those other sciences is very prevalent. for these two companies to come up in germany makes a fair bit of sense. people like daimler

elon musk would tell you it is easier to do this as one business.s him to combine these two empires. the problem is for investors, them rampwant to see up production of the model 3. that is the hardest task for this company to achieve. this looks like a expensive distraction. guy: you talk to there is so much going on in the auto industry. ew in the diesel scandal and what is happening with this shift, this paradigm shift. e proposing new vehicles coming forward. how do you invest in a sector going through such a revolution? we are talking about huge numbers of startups. there's only one, but the whole industries going through massive change. how do you make money from that? the moment, and conventional ways. there is a lot of development. time before some that is a profit driver. it were looking at companies that can sell good quality cars in volume. andel and petrol cars, avoid scandals. you can't tell which company will announce a scandal at this point. some people would argue perhaps if volkswagen had a proper board of governance that perhaps it

i have all of the respect in the world for elon musk. and i can't even hammer a nail into the wall, and so when somebody sends a rocket into spa space, and what you will have right now is people who think it is is overvalued, and it is an overvalued stock today versus the people who think that it could double in the next ten year years and possible that both sides are richlgt my argument is that there are hundreds of stock s in the stock market right now that will double in the next ten years without the downside. >> ronnie moas, we appreciate your coming on today. >> thank you. >> and we reached out to tesla for xherngts and we will let you know if and when we hear from them. meanwhile, the fed chairman y l yellen is on the hill again testifying. we will bring you the thaedlines and bring it all to you on cnbc.com. and there she is in front of the humphrey hawkins' testimony this time in front of the panel. back after this. being a usaa member because of my service in the military is something that makes me happy my name is roger zapata

iran must tesla offered to buy at elon musk solar city.ll street journal" "wall street journal" says the deal defies logic and will have worried. argentina squashed the united states men's soccer team and showed everyone why he is the world does. and baseball a rematch of the world series but they had battled through injuries to win against the royals. highlights coming out. nicole: could mourn 5:31 a.m. you to welcome you to "fbn:am," the latest breaking news and what to expect a day ahead. the final day of campaigning as they had supposed not to determine if united kingdom will remain a member of the european union ashley webster live in london. good morning, actually. reporter: good morning. the last opportunity. the final day for campaigners on both sides of the issue to make their pitch to those people still undecided. the poll is up in that 7:00 a.m. in the u.k. we may get an inkling of which way the vote is going. maybe a better leader than not. turnout is six to be high. last night we had a very spirited debate between three sides

the ceo is cousin of elon musk. i need to get to markets, ross.t session lows, down 58 points. earlier the dow was up 19 points. what is going on for the average investor who says it is too scary to get in. >> it is a scary day to get in with the whole "brexit" thing coming to a head. we're waiting for the british people to make some sense and stay in the euro. they're a european country. they need to stick with the decisions they made. this is a disaster for them. i know they think they have lost their sovereignty but they have not. it is very important that they keep the global, sort of standard of economics in order here. and. we're seeing a lot of volatility and also opportunity because of it. i'm hoping they make a smart decision. liz: good to see you, thank you very much. ross gerber, gerber kawasaki ceo. not too thrilled with his tesla stock at this moment. stocks closing down ahead of tomorrow's critical british exit vote. [closing bell] there is the closing bell. david and melissa, pick it up here for "after the bell." melissa: stocks dro

elon musk, you get it? elon musk, he musk be kidding. [laughter] i told him it was a bad idea. the news for a couple things. one of them is he wants us to go to mars. he's going to send ralph there in a self-driving car. we put it all together next. ♪ the heirloom tomato. when you cook with incredible ingredients... you make incredible meals. fresh ingredients, step-by-step recipies, delivered to your door for less than nine dollars a meal. get your first two meals free at blueapron.com/cook . ♪ >> i'm nicole petallides with your fox business brief. the dow right now down 17,772, and the s&p 500 down 3.5 at this moment. and we're keeping a keen eye on oil as well, the opec ministers met in vienna and, basically, as oil has run up close to $50, crossed for the first time in 2016, they didn't feel the pressure to affect supply and demand but agreeing to meet again in the future. oil got a little spook in the morning, it has regained momentum to the upside. and the energy stock, still see down arrows, transocean, diamond offshore, an a that daughter coe also a laggard but, again,

like steve jobs or elon musk. they are known for being completely uncompassionate.hy is that the best way? jeff: i think different styles work for different people and work for different companies and work for different situations. i think the worst thing somebody could do is try to emulate what somebody else does because that person has had success. you have to understand what works for you and it starts with being authentic with yourself. and what works for steve jobs or what works for elon, and people like that, may not work and more often than not does not work for other people who try to employ that style and people just don't follow. i think it depends. for me, personally, i find that taking the time to understand what it is you're trying to accomplish and how i can help you works better than projecting my own worldview onto you. i think that's a mistake a lot of younger, less experienced executives make. that was certainly a mistake i made. i expected my team, 10, 12, 14 years ago at yahoo!, i expected my team for the most part to do things the way i did them

. ♪ emily: $2.68 million, elon musk is the main investor and many are worried about the company.icipated,y tesla's financial liability depends on getting that ball out right now. cory johnson walked us through that. pg&e,if ford is buying or exxon mobil may be, this is a very strange thing. yes there is a commonality in terms of clean energy and more portly yunnan must is one --pany that can bailout and elon musk is another company that can they another, but showing us how crazy this is. if you look at how much cash tesla has and you have a company that cannot afford solar city. tesla has $1.4 million in cash. $2 billion in debt. you look at the cash. valium,ook at the total 1.4 billionne billion dollars dollars and they can somehow acquire more money? emily: they are making batteries. this is something we have been debating and thinking about for a year and a timing seemed right. doesn't make more sense? john: most people don't have use for it. the principal uses the fact and is coming at a plant in nevada. the notion they are in the power supply business is ambitious but at the

emily: elon musk is a guy best known for taking on impossible tasks.n though investors night -- might not believe in this merger,ar in verdure -- why now? why is proposing this now? liam: if you go back, both these stocks were flying high. both companies were burning cash , but shareholders did not seem to care. in tesla's case, the stock is still rated high. same city cannot say the since october when it pivoted on its strategy. it has been dropping quite radically. it just doesn't look like they can raise the capital they need. musk in the call today was in pains to point out that everything was fine at solar city they could raise money if , they needed to. the question you have to ask yourself is, this is a very low priced bid compared to solar city's history. and so if they really were fine, , why would they go for this deal? it will be telling if they do actually recommend this deal because it would be a sign they have sort of lost faith in their own future. cory: the free cash flow burns are so disconcerting for solar city because it would sugges

elon musk tweeted that the booster had an rud on the ship.eak elon mus that means rapid unexpected disassembly. or, an explosion. plans to launch satellites. the country's biggest single launch trailing behind russia and nasa. satellite launches are expected to increase by 35% globally over the next five years as countries like india and indonesia rush to bring phone service to their populations for the first time. india has 35 satellites in orbit d says it needs -- -- ouble that to catch up with that demand. time to find out who is having the best day ever. today's winner is amazon users. amazon is slashing shipping fees. for small, flat items that can fit into envelopes. this poses a attentional threat -- potential threat to alibaba's business. in all can chinese sellers with u.s. shoppers. cents,t will pay $1.61 that is 67% less than the current price. that is all for this edition of "bloomberg west" have a great day. ♪ >> central-bank dilemmas everywhere. the bank of japan sticks to its policy. the federal reserve hints at a rate hike bef

after a conference call after announcing this offer, elon musk said, look, we look at ourselves as able energy company. with the solar company, if the acquisition goes through, then you have energy in the factory that tesla is building just outside of reno, nevada. again, the bid to solarcity comes out to $2.8 billion. $28.50 a share. those shares are up more than 10%. meanwhile, tesla shares trading under $200 for the first time in a long time, as investors there are wondering is tesla, the electric car company, becoming tesla, the sustainable energy company. that's the story from here in the u.s. back to you. >> well, tesla ceo elon musk who is also the chairman of solarcity and largest shareholder in both firms described the deal as a no-brainer. >>> solar stocks reacting to the deal. phoenix and solarworld trading higher. solar tech is off by a tad in germany. >>> now, a key consideration in brexit would be trade terms if the uk breaks away from the eu if it were to happen. while the leave campaign argues that treaties they aren't necessary to trade. others argue that negotiation

the new video elon musk tweeted out. a word of caution along with it. >>> also we have jimmy. >> hey, guys. blake lively is my guest tonight. luke wilson. to not turn the channel. >>> happening now on our website, the senate rejected four gun measures today in the wake of the orlando massacre. one of those measures would have restricted firearms for suspected terrorists and banned gun sales to anyone on the no-fly or terror watch list on facebook, san francisco has the most expensive home listed at $28.5 million, that's a 14,000 square foot mansion in pacific heights. the villa was built in 1904, since fully renovated. car burglaries are on the rise at several east bay parks.. andk >>> car burglaries are on the rise at several east bay parks. with summer here the number of break-ins are expected to rise as well. the latest crime stats show nearly 1,000 car break-ins in the east bay regional park district over the past three years. with 65 parks it's the largest urban park district in the country. >> that's kind of scary

it's a smackdown between richard branson and elon musk. well, as long as they're thinking progressively. productively. >> all this talk reminds me of the movie martian. >> yes. i fell asleep. it's the shift. [ laughter ] >>> good morning. as you are wiping the sleep out of your eyes and heading out the door this morning, we have an intrusion of the marine layer, a good 45 to 50 miles inland. right now, we have overcast skies over mineta international airport and levi's stadium in the santa clara valley where currently the air temperatures are at 58 after a high temperatures in the upper 80s. up from the average high of 76 degrees. satellite and radar we have a very dense deck of low clouds and fog hanging tight to the coast. again, moving inland at least a good 50 miles at this hour. it will take a while to see clouds retreat back over the open waters. and we'll see partial clearing at best along the immediate seashore. temperatures will peak tomorrow and saturday. it the will be hot in our inland areas. it will be cool along the coast. ag

he was almost so strong. >> yeah, elon musk says we're most likely living in a simulated world -- >>probably could not get the rights to it. >> the funny thing is, i told him to take that picture. >> see, sometimes i think i'm set up for mistakes. >> no. >> yes, never. >> matt, you asked what possible good could come from knowing that we're part of someone else's game. which i get, and i have heard other people make that argument. i don't think that way. to me i think this is ultimately a philosophical discussion, what is the difference? will you act differently if you think you're in a simulation? >> yes. >> why? >> because the illusion of a free world, it allows us to wake up in the morning. >> you could have differently -- >> don't people steal cars in these games, but wouldn't you steal more if you knew it was all o-- >> i guess i would not. because i'm just a moral person, if you need morality imposed by an external source -- kate, you said you believe we're in a simulation but we're the ones who created it and we've forgotten. if i may quote neil on this -- >> i think it's good

elon musk will pull back, not vote or part of the negotiations but some people still say there is too much conflict of interest. >> the guy owns 22.2 million shares of solarcity. i would say he is little piece after conflict there. i know the company really well. in fact i've been looking at solar on my house. in five states solar makes sense. in the other remaining states, not so much. business model is a little quirky. they're spending a lot of money. david: right. >> i don't think it is good for tesla. there is mix of batteries and energy stores but right now i don't see the answer. david: would tesla exist without federal and state subsidies? >> i don't think so. i know that will be kind of inflammatory but at the end of the day, earlier on they really needed those subsidies bad. david: thanks, guys. melissa: fedex taking a tumble. the stock having its worst day in five months after providing a cautious outlook. meanwhile, this part caught my attention. company ceo warning to both donald trump and hillary clinton are quote, worrisome for business. david: hmmm. melissa: jared, let

elon musk announced he's going to mars in 2018. not with people.th the heavy-lift vehicle. it will be obvious we don't need to spend taxpayer money on this. john: you have been there nine years. it's not just congress' fault. nasa want to protect every job. >> it's a bureaucracy. people at nasa are wonderful. but the leadership, they are all in tight with the industry. everybody likes to manage a contract. and so it's pretty nice system. at this point you have got $18 billion of the public's money that i think the space program could do better with. john: it could be so much better used, and so many americans say privatization. on msnbc they do get excited about space travel. but then the host has to say this. >> i also worry a great deal this is going to private industry. i keep thinking the competition of private companies in this on the planet has not necessarily led to equitable outcomes. john: the outcomes won't be equitable. >> i can't understand that. now i work for the airlines pilot union. we all fly in airplanes safely 700 million people

elon musk and the cofounder took to the stage to educate the audience and viewers online.started with the challenges of reducing the roadster all the way up to the recent news about the model x. they apologized again about the issues. two hours in and they are going through the history of the company. i think this was an attempt to remind people that tesla has a the and interesting history average american consumer is not aware of. >> they will not be free anymore. what exactly is he saying? >> this came up in the q&a portion of the event with a question by the shareholder. said, supercharging has a cost and the thing to do is to decouple from the cost of the car. there was not a firm number but it seems obvious that is tesla -- they willires not be able to offer free supercharging for life for a half-million customers. owners feel free supercharging is a right and a privilege to its they are entitled. took pains tothey remind people the point is to enable long-distance travel. they have had problems in the to theth people going supercharger to charge and that is not the i

elon musk. >> a lot of scrutiny indeed. he's concerned it's essentially married two biggest silicon valley ventures. so the idea is he's ramping up production anyway for these batteries for tesla and other uses. so i think it's just as they say in all the 1980s movies about synergy; right? there's going to be electric cars, solar panels all under one roof. all rolling in the shore of the same direction. but does increase security scrutiny i should say on elon musk. he owns more than 20% of both of these companies. i think 21 or 22% . connell: yeah, so it doesn't make any sense financially. the stocks down. >> right. and also the market caps are incredibly different. one is -- i don't know. a billion and a half to two bill and the other is much higher, like, 33 billion. so there are a lot of people saying maybe elon musk is a guy with a lot of great ideas. spacex . connell: kind of above everything. the stock's down today. >> but if you're a traditional analyst; right? looking at the balance sheet, you're just going to say a

elon musk owns the largest they can both tesla and solarcity.kswagen's chief executive has apologized again for the emissions scandal. agm.de the comments at the told shareholders the whole company is working together to manage the fallout. is facing the greatest challenge and its history with the diesel scandal. we have disappointed stockholders and lost the trust, lost customers, business partners, and the public. the supervisory board, the management, and staff are all working to overcome this crisis. the first was shareholder meeting since the scandal came to light in september. rishaad: the head of japan stock exchange with a brexit warning as well. we will look at the knock on effect in the asia-pacific. referendum aside, discussing what the other long-term risks are to asia markets. that's right here on "trending business". ♪ lindsay traders in asia will be at their desks well before dawn as the u.k. decides its future. -- currency traders in asia will be at their desk well before dawn is the u.k. decides its future. which way is it going

elon musk is the largest shareholder of both companies, with 22% of solar city, and 21% of tesla.t works out to a premium of as much as 35% from tuesday's closing price. solar city rose 22% in after-hours trade, while tesla fell. seven out of 13 economist poll nextoomberg predicted the indian central bank governor. the current chief economic advisor. he is considered to be on the dovish side of the policy spectrum according to a note. the note also says less of a believer in fiscal orthodoxy. he has argued for monetary easing to boost growth. the current governor will step down in september. coming up later in the program, almost 20 years since the handover to china. hong kong's richest man gives us his vision. next, the count down to breakfast reaching its final stages. we will look at how commodities are faring in that deal. ♪ >> that is 9:44 a.m. in hong kong. these of the stories making headlines around the world. mosten has surprised analyst by surging 13% this year, the best performer among developed market currencies, posing a challenge for the japanese economy as a strong

i forgot i bought those. >> peanut butter m&m. >> elon musk doing a deal with elon musk. tesla.have someone who says both companies are doomed. >> and on whether the uk should leave the european union

i had a lot of conversations with elon over this.s something about the fact we have a limit to our ability to explore the world and the other solar systems of our universe. the way a game designer would deny it -- design it. -- look to smaller installer and smaller scales, there is a fundamental limit to the pixels of our world. that's about as far as the speculation goes. it's more -- emily: you talked about this many times. do you agree with him? steve: it's quite possible you realize everything in our world is in self -- itself a copy to. whether you think of evolution as an algorithm. fractals and how things unfold the nation. everything can be thought of as a mathematical construct. everything is exchangeable for a simulation. is withmersed in one the philosophical questions started coming to play. you think about the future of virtual reality wars many writers think about, we jack into a simulated world. how would your brain know anything? how would we know more than what we see? emily: doesn't matter? steve: it might not. emil

elon musk has made some comments. >> primetime was saved for elon musk and it was typical musk fas, started late, about midnight east coast time, talked part physics lessons, about theathe a aerodynamics of space and tesla and even whether apple will create a car of its own. take a listen. >> i think they'll probably make a good car and it will probably be successful. the car industry is very big so it's not as though there's, you know, one company to the exclusive others. there's like a dozen car companies in the world of significance. so -- the most that any company has is approximately 10% market share. >> despite all the skepticism about the production targets, he still sees half a million cars in total by the 2018 time frame, maybe a million, he says, by 2020. a pretty clear path to get there, he says. but they didn't delve too much into what it's going to do to create that production, the likes of which very few factories can do it all. >> what i hear is they can't make the model three. the demand is too great. maybe apple can help alleviate the shortage of teslas in 2020. we've all b

solar's ceo seen here is elon musk's cousin. the big concern is that tesla should stick to knitting. we talked about the doubt that tesla could make all of those model 3 cars that have been ordered. people wonder it's trying to buy a company in the middle of all of this. to be fair, the purchase will not technically call tesla money because it's an all-stock deal but tesla's stock is worth a lot less after the announcement. tesla shares fell down to about 9%. >>> and "the columbus dispatch" is reporting that u.s. transportation secretary anthony fox will announce columbus, not san francisco, as the winner of the smart city competition and will get millions of dollars in federal aid to test autonomous cars, build electric charges and other futuristic cars. once again, an ohio team beats a bay area team. >> that's really sad. >>> a man accused of hiding a teen murder suspect in novato is expected in court for a bail hearing. police say elmer rivera harbored a teen along with 16 girls he was arrested for stabbing and shooting two n