we are expecting apple to revamp and may get into video in the next few months.o what is it like to live like a digital pirate king? mega upload founder kim.com, the target of the biggest copyright case in history, recently showed me about his new zealand mansion. he is currently they are under house arrest. take a look at the home he calls his castle. how long have you been living in this mansion? kim: six years, but i'm stuck here 3.5 years now. emily: ever since the raid, you have not left? kim: that is right. emily: so the kitchen, you designed this yourself? kim: yes i like it wide and cool. emily: this is where the helicopters landed? kim: yeah, right here in the courtyard, and another one right here where the cars are parked. emily: do you worry that you could lose this? kim: a man's home is his castle, and i think it would be a significant victory for the u.s. government, and i do not want to give that to them. emily: who are your neighbors? ki recentlym the alibaba ceo has purchased a: -- cam: recently the alibaba ceo has purchased a property next door.

he expects apple stock to keep growing this year from 129 to $240 a share. >> wow! >> the stock increased $1.50 after that tweet. icahn is the seventh largest shareholder shareholder. the federal court has reduced what apple has to pay samsung. samsung illegally copied iphone patents, but said apple could not claim samsung cop ed the phone's appearance and that dropped it to $548 million. >>> first lady michelle obama presented the tech museum of innovation in san jose with the country's highest honor for museums. the institute of museum and library services awarded the tech the national medmedal. it presents to extraordinary and innovative approaches to public service. the museum is one of ten institutions to earn this honor. >> big congratulations to them. >>> check out who is hanging out with california's governor. look at that little baby there, huh? that's governor jerry brown's new puppy. he's a corgi and border collie mix. the governor's other dog will retain the title of first dog, of course. calusa was appointed deputy first dog. >>> tonight on abc 7 news at

emily: the big news we are expecting is going to be coming from apple, where we are expecting apple tosic as apple music, fully integrating its position with beats. the big question remains, can apple really make big changes in the streaming music? they had a thing called ping which did not work out too well. nobody really knows what the big problem is that apple can solve here. the streaming music business is going quite well. necessarily such a big business for the companies that are in this, and that is why we are seeing spotify trying to diversify today. alix: celebrities over breakfast? i would watch that in the five minutes i have. emily: i would totally watch that. alix: emily, thanks so much. make sure to tune in this evening at four: 30 p.m. eastern to watch "bloomberg west." still ahead, a french billionaire is making headlines this week in the u.s. cable tv industry. we discuss who he is and why the sudden interest. ♪ alix: a european company is expanding into the u.s. cable market, agreeing to buy 70% of sudden link communications in a deal that values the company at more t

expect apple to build in new features there. they're great, maybe it has an impact on watch demand. apple has all of these stores and people are walking in seeing a cool watch feature, they're more likely to buy it. >> a lot of people saying the marginal increase in demand, estimates on the phone is china. they're doing better in china than anyone ever thought. >> i think that the kgi story on the watch and the story about the iphones really are apple. because apple is the iphone and that's what really matters. the watch is in my opinion really important because it brings apple pay to a much, much larger, much more valuable universe. but when i looked at the kg i-thing, when it first came out. i was reminded by something called mcnamee's third law, in a bull market cream is not the only bovine product that floats to the top. and we have an issue of people who say things in order to -- provoke attention and get stories. and you look at the gap, the guy was so far above where everybody was, the point is it doesn't matter. they cou

the news comes as a big time investor wrote a letter to apple ceo saying he expects an apple tv and an car to hit the market next year. >>> guess who's in town tonight. the houston rockets are here and we're ready to go for game 1 tomorrow night. geraud manicure is next. ♪ >>> good evening, geraud moncure in the comcast sportsnet studios. we are less than 19 hours away from the warriors first appearance in the western conference finals in 39 years. it's uncharted territory for this era of the franchise. the doves should find a comfort level returning to their style of play against the rockets. in the regular season series the doves dominated houston, 4-0. outscored the rockets 115-99 outshooting houston 50% to 40. after dealing with serious adversity in the semis against memphis, steve kerr's squad continues to blossom. >> the growth that we showed against memphis will pay off. i think that experience was important for us. we needed to see some adversity and feel it and we did and we responded well. >> one team in our way to get there and whatever happens in between games, you just got

apple car. what are you expecting? alex: they are heading toward an autonomous driving world.e are heading towards and a time is driving world. they already have maps, they have theory, they have an intelligent cloud with it and they have the the greatest industrial design mind in the world in jony ive. you put that together with local manufacturing and you have a revolution in the making. we think that is coming. we think it is a big deal. we think it is a trillion dollar opportunity potentially for apple in 2020 and investor should be paying attention to this. guest: i'm not sure i agree with you thomas carr, but i definitely agree about this being -- the autonomous car, but i deftly agree about this being an opportunity for apple. i think everyone is looking and saying, we can do a better job. regulatory issues limit the design speed with which you can operate an automotive, but i think he's looking at that and saying we can make a big impact. emily: they make it clear that he still has control of design but others are saying, is this a step toward leaving the company? we h

so based on the models and what you expect apple might do saying apple is worth "x" amount, 240 bucksan it's trading at 240 bucks a share six months from now. >> the reason that investors are in it today which includes the investor friendly moves they have made. how much of a risk is there in this market if a lot of people who have been in the yielding sectors, names, for example, start to move money out. do you think they'll put it back in other parts of the stock market or might they move it out of the market altogether? >> they have no choice but to stay in the market. there's no alternative. and what i think as we stated earlier, when i was up with you on the deck and then listening to the guest again today, the fact of the matter that the equity market moved to the upside is an indication that you cannot use the former models on rising interest rates against equity. the central banks have manipulated this market and the asset bubble created in the fixed income side is going to be the concern of how quickly that money can safely leave that market and find its way into the equity.

emily: tell us about the apple car, what are you expecting? >> it is clear that apple is hiring seriously in this space. think about what all the major automobile factories are doing. we are heading towards an autonomous driving world. they are ready have maps ciri they have intelligent cloud and the greatest industrial design mind in the world with jony ives . you put that altogether with low-cost manufacturing and you have a revolution in the making. we think that is coming and a big deal, a potential trillion dollar opportunity for apple in 2020. >> i am not sure i agree about the autonomous car, but i agree about this being an opportunity for apple. you look at car user interface these days, it is pretty miserable. i think everyone at apple's they can do a better job. -- apple ink they can do a betterthinks they can do a better job. i think jony is looking at that to make an impact. emily: ive still has control, yet on the other hand people are wondering if he's taking a step towards leaving the company? he talked to vanity fair as a summit

apple pay allows customers to buy goods by holding a mobile device up to readers in merchants. analysts expecte apple's biggest market. in the first quarter of this year, for the first time ever apple sold more iphones in china than in the u.s. >>> and anne-marie how would you like a fitting room without getting undressed? stores like neiman marcus and nordstrom's are trying out the high-tech rooms. some models you see you looking at an outfit without trying it on. the technology allows stores to gather as much information about customers as online retailers. anne-marie. >> love it jill wagner at the new york stock exchange, thanks a lot, jill. >>> in sports now, basketball's best team avoids falling into a 3-1 series hold. curry scores 33 points to lead the golden state warriors to a 101-83 lead over memphis. >>> here's something the chicago cubs fans hope to see for years to come. rookie sensation chris bryant drills the first homer into the left field bleachers at wrigley field. and on the next pitch, anthony rizzo homers into the right field seats still under construction. the cubs take it

apple is expected to change its font. apple will start soon san fran kiss could he font on its i phones i pads. san francisco is already used on the i pad. they will make this announcement in june at its developer's conference. i like that because sometimes this font is boring to look at. the same font since 2008. if you ever go visit san francisco, don't call it frisco. it's called the bay area. >> they hate that. dully noted. philly you don't mind when people call philadelphia philly. >> it's known as philly. > free library, in philly will be hosting a series of job fairs for those seeking entry level positions, the first one today at 9 to #. job seekers can attend a resume clinic focusing on internet job searches and learn how to can a zest the library's database. >> now i want to go to del friscos for lunch. too often what iters and waitresses go unappreciated, but today will not be that day. if you go to del friscos today is national waits and waitresses day. a day to recognize the importance of the people who wait on

apple beat expectations as well exxon mobile and twitter. >>> ben bernanke is a busy man. he took a consulting job with pimco and he is a fellow for the brookings institute as well. >>> here in omaha it's all about berkshire hathaway and buffett. they had notably under performing but buffett says things are looking up. >> if you look at the first quarter, you'll see a big, big change relative to the union pacific which is our yardstick. so that is -- it turned around even faster than i thought it would. >> that is good news for burlington northern chairman matt rose. they are the second largest freight rail system. they haul half of the freight in the united states. that is nearly $70 billion worth of consumer goods and commodities. we sat down with him to find out what he thinks. >> the overall economy is fine. it's not great. i think we're in a weird transition. the oil energy renaissance had such a spillover effect. it was creating heat in terms of inflationary things. people were paying people a lot of money. they were buying ford pickup trucks. the effect of the energ

it was not what i had expected. at applere than just about improving your own self. it's about improving the lives of others as well. our products do amazing things and just as steve envisioned they've empowered people all over the world. people who are blind and need information read to them because they can't see the screen. people for whom technology is a lifeline because they're isolated by distance or disability. people who witness injustice and want to expose it. and now they can because they have a camera in their pocket all the time. [ applause ] graduates, your values matter. they are your north star. and work takes on new meaning when you feel you're pointed in the right direction. otherwise it's just a job. and life is too short for that. we need the best and brightest of your generation to lead in government and in business. in the science and in the arts. in journalism and in academia. there's honor in all of these pursuits and there's opportunity to do work that's infused with moral purpose. you don't have to c

apple is expected to debut a new version of apple tv next month. reports say it will have its own app store and a bundle of select channels for people who don't want to pay por a full cable channels. >>> sometimes we take tourist spots like the national mall for granted. people all over the world come in droves to see our nation's beautiful capital. and today we're going to learn just how many people came here last year. travel officials will release domestic visitation numbers during a travel event. we're told they are record-breaking. we'll learn how much money they spent while they are vacationing in washington. how that money is supporting that economy. >>> security at our federal facilities in the d.c. area back in the spotlight after yet another incident. news 4 first brought attention to this. this one involves a woman who used to work for the fbi. what she did that landed her behind bars. next on news 4 today at 6:00. >>> 66 balmy degrees outside as we take a live look. skies are clear right now but rain is moving in. when >>> right now on

apple beat expectations, as did exxonmobil. ford fell short, and so did twitter after an accidental early earnings release. and former federal reserve chair ben bernanke is a busy man. he just took his second job if two weeks. this one as a consultant to investment giant pimco. here in omaha, it's all about birk shire hathaway and warren buffett. they own 100% of the rail giant bsf, who had been underperforming. now buffett says things are looking up. >> they've improved dramatically. if you look at the figures in the first quarter in terms of train ve loss si, even in terms of earnings, you'll see a big, big change relative to the union pacific, which is our yardstick. so it's turned around even faster than i thought it would. >> that's good news for burlington northern checktive chairman matt rhodes. the company is the nation's second largest freight rail system and hauls half of all the freight in the united states. that's nearly $70 billion worth of consumer goods and commodities. that gives him a pretty good view on how th

will get paid more per subscriber by apple than cbs gets paid from traditional cable or television -- or satellite tv providers. so definitely a hot one to watch. we expect that apple tv product to launch some time this fall. back to you. >> thank you very much. and yet there's more. we have kayla tausche stepping in with more breaking news. is this a follow-up on your previous story? >> it is not but i have an update on the advanced deal talks between avago and broadcom under way and i have learned from a person familiar with the matter that avago's board is set to meet tonight wednesday evening to vote on the deal which could be announced as soon as tomorrow morning. take a look at both stocks of the potential acquirer which would be avago, its market capitalization slightly larger than that of broadcom but both of the stocks are up. that is something we saw in the previous large deal in the chip space that year of nxp buying free scale semiconductor. at that time that was the biggest deal in the chip space. this would possibly most likely surpass that but, of course there are synergies to be had in this space. there has been consolidation being talked

. >>> and billionaire investor carl icahn sent a letter to apple ceo tim cook on monday saying he expects the company to launch an ultra high deaf tv set next year but after nearly a decade of research apple shelved those plans more than a year ago. it's focused on developing an online tv service and redesigned am tv box, both are expected to be unveiled next month. back over to you. >> landon dowdy live from world headquarters. thank you very much. >>> dozens are dead after an avalanche of mud swept through homes in colombia. heavy rains triggered the slide in the town of salgar, 60 miles from the capital. at least 58 people died. mud swept away housing as people were sleeping. the search right now is on for survivors. shoddy construction there is believed to have contributed to the disaster. >>> we do have some amazing video to show you this morning of a massive hailstorm pummeling west texas. take a look. the hail came down hard and heavy. some of the hail stones were as large as tennis balls. the storm led to a tornado warning, made driving very difficult. not a lot of people out ther

apple. and approximately 4500 people are expected to work in the building when they are done. >> there are people concerned that they are going to watch them in their homes throughout the day. >> reporter: i spoke to represents and they simply said they don't own the buildings. and residents are really hoping that killroy realty corporation is going to step up with that offer. >>> new video tonightads as the prime minister of japan is greeted by angry protesters in san francisco. but tonight's demonstrators outside wanted to hear an apology that they say is some 70 years over due. and live that fair mont hotel. and first law makers now protesters. >> reporter: that's right, the protesters tonight demanding an apology regarding sex crimes during asian women in world war ii. they were here in big numbers and wanted their voices heard. prime minister abe arriving at the back side of the hotel in sanfrancisco. protesters were demanding that he go home. >> get out. >> he's just a human being, why can't he accept responsibility, appallologize and move on? >> reporter: they say the foreign minister shou

apple story. we could talk about the developer conference, larger ipad, everything we expect, china is key to an appleoing higher and to continue to see this growth. >> worried about google? google's still in china? >> google is definitely a worry out there, especially as we just think about the conversigence o technology. apple has been one step ahead here -- >> but google has done nothing in china and doesn't seem to be on the verge of doing much, is that a problem? >> i think that is a missed opportunity when we think about the chinese market. i think there is some tech companies as we seen on the enterprise, cisco, microsoft, there's been frustration there. apple's got telephone right. everyone figuring out what's their secret recipe in the lab, why they've been successful, and i think that speaks to apple brand and cook has just done a phenomenal job. >> dan, good see you. we'll see how this takes shapes. >>> smart phones, taiwan bringing zen stateside. the zen phone 2 model making its u.s. debut this afternoon after shaking up asian markets with its affordable price tag. we spoke to johnny this

apple. with those semiconductor stocks we expect the pop quick but we look for a big move. >> i just have toapple. yes i love apple but to see the margins contract the other problem is institutions are the number one have that correction it is normal then you have to be careful. charles: anybody have the trade that could pop? >> but it will be flat. >> and talk about is up 100 percent on facebook. that you don't need the money but jedi put 35,000? but to take those profits i would take some of the table. maybe one third or half. >> never go broke it is of good discipline you will never be disappointed. charles: he is leading us now. he will go see the rangers. but the co-host of the five will be here next to talk about of lot of things. right now. ♪ ♪ ♪ if you take multiple medications, a dry mouth can be a common side effect. ♪ ♪ that's why there's biotene. it comes in oral rinse, spray or gel, so there's moisturizing relief for everyone. biotene, for people who suffer from a dry mouth. as the company that's all about printing. but did you know we also support hospitals using electronic hea

apple. with those semiconductor stocks we expect the pop quick but we look for a big move. >> i just have toapple. yes i love apple but to see the margins contract the other problem is institutions are the number one have that correction it is normal then you have to be careful. charles: anybody have the trade that could pop? >> but it will be flat. >> and talk about is up 100 percent on facebook. that you don't need the money but jedi put 35,000? but to take those profits i would take some of the table. maybe one third or half. >> never go broke it is of good discipline you will never be disappointed. charles: he is leading us now. he will go see the rangers. but the co-host of the five will be here next to talk about of lot of things. right now. ♪ ♪ with type 2 diabetes and your a1c is not at goal with certain diabetes pills or daily insulin, your doctor may be talking about adding medication to help lower your a1c. ask your doctor if adding once-a-week tanzeum is right for you. once-a-week tanzeum is an injectable prescription medicine that may improve blood sugar in adults with type 2 di

apple is going to be one of the core holdings. and it's a long-term play, everything they do has changed the world so far. and i fully expects we go forward it's going to continue to change the world, so if you like it and you like apple, it's absolutely going to place in your portfolio. >> i'm going to go with you. take a look at the chart, how do you think it's trading? >> the upside. its been consolidating for quite some time. >> consolidating, instead of stalling. >> everybody will have a different thing. if your glass half full, i think you're talking about this being a pause. other folks are probably talking about being a stall. you look at the way the name has traded. 130 and established those areas. then had this little bit of a pullback, but did not break down. and that's what i think everybody was expecting to see. breakdown underneath that 120 level. didn't happen. it's held up ever since. you look at the numbers, it's easy to see why carl, and he put on different multiples, he's talking about pipeline essentially in terms of apple, that's why he's seeing growth. >> this is the largest market cap in the united st

wherever you go by downloading the tracker app it's available at no cost for apple and android devices. >> how what can we expect around here. >> reporter: it's going to be a nice one. we're dry and green blip up to the northeast of new york, in fact that's it. as we look outside we have cloud cover in parts of the region, we expect the sun to take over most of the day the beach will be the warmest of the three holiday weekend days today. 6 # degrees in philadelphia, currently. cool and comfortable as you step outside, 61 degrees, bring that sweatshirt, maybe a jacket, too 69 in trenton. 63 in wilmington, documents are fairly low so it's not all that humid as you step outside satellite shows you cloud cover across the region, but it has a tendency to melt away and push off to the north. most of the region will wind up with sunny skies through most of the day. allentown, 87 degrees, lots of sun, very warm, might be some clouds mixing in at times in places up north, memorial day. in the city, very warm, maybe getting a little more humid as the day goes on. at the shore, 80 in atlantic city. foorlt down -- farther

wait for back to school sales in september if you're going grab one of those and apple tv is expectedd off until next month if you can. shirleen. >> sounds g thank you. >>> finally at 4:00 a young supermany fan went one step further than just learning the lines to his favorite movie. >>> that five-year-old can match his nun-chuck moves perfectly. the japanese boy mimics the actor's expressions and calculated pauses to a t his parents share his love of martial arts on social media and you can guess it went viral with more than 3 million views. >> do not mess with that kid. that is one cool kid right there. >> picked a good one. >> that will do it for "action news" at 4:00 today. for shirleen allicott alicia vitarelli. shirleen and i along with ducis rodgers back tonight at 10 o'clock on phl17. >> "action news" at 5:00 is coming up next. >> see you tonight. there's over two hundred thousand students in philadelphia. jim kenney and tony williams are fighting over public schools versus charters. i think they're both wrong...it's making sure they all get a good education. teachers should h

apple. i didn't expect that.hought the power of the android platform, the ubiquity over time would ultimately make it an incredible advantage just wait microsoft did with computers way back. and that is not happening. in fact the reverse is happening. so i don't think we should ignore the cycle. but i think this switching phenomenon is going do extend this cycle more than i would have thought. >> the cycle is strung, we were halfway through it. the momentum last quarter was pretty strong, their guidance was pretty strong. which suggests they have confidence in what they're seeing. the apple watch, is going to make their ecosystem even stronger. we have the carriers in the u.s. that have the next programs, they get people to upgrade more quickly. that's strong for apple, too. so lots of goods this is the stuff they tend to get right and it's stuff that makes a lot of money. >> and they just nailed it on the 6. they have nailed it. >> and the stock by the way, up almost 2% obviously on the big market cap. back to 1

saying even though the retention rate is down a bit, apple is the only vendor that can expect an inflowerybody else is leave on a net basis. >> that's a very big ticket purchase, too. trying to figure out the retail sales. apple is on top, and the stock i know a lot of people have just just given up on it. and i say, are you kidding me? >> how can you be disappointed with apple stock? one of the greatest performers of all kind. i feel like i'm back in philly throwing snowballs at santa claus >>> whether we come back some eye-opening comments from dish network about google and the nfl. you'll hear what david -- jay walker has grave warnings about the future of technology including drones and social 3450edia, when we come back in a minute. ♪ if you're looking for a car that drives you... ...and takes the wheel right from your very hands... ...this isn't that car. the first and only car with direct adaptive steering. ♪ the 328 horsepower q50 from infiniti. >>> the streaming of video to mobile devices or to your home for over-the-top broadband packages certainly is proliferating. we are jus

if you look at how it's done since the last earnings report, which was better than expected it's down 4.4%. apple trend lined for the 50 day moving average. some concern that fundamentally apple may not be able to keep up the pace of growth. cory: maybe the watch will make a difference. scarlett: we will see. cory: thank you. we will bring you the top stories of the morning. stephanie: i will take it from here. speculation that the biggest -- you are going to have to move this thing forward. how about some news. oil has rebounded from a six-year low in march. drillers have cut the number of operational oil links to the lowest -- oil rigs to the lowest since 2010. the fed has agreed to turn over the names of officials who met with medley global advisors. janet yellen says she was one of them, but that the meeting happened months before the league. medley allegedly got access to details of the feds qe3 plans before was made public. the highest-paid female executive in the u.s. is apple's retail chief angela aarons. she made almost $83 million last year including a sign-on bonus and a grant for mone

. >> the apple watches are more expensive in china. plus i couldn't find any. >> i didn't expects craziness to happen. i didn't expect it would be such a hot item. i think people are going after the apple watch because it is limited supply. >> the most expensive one is for 10,000 hong kong dollars. the list price is about $700. if you want to pay almost double, you can be an early adopter of the apple watch. >> it's new. that's why i want to try it. i'm guessing i will have to pay $2000 more than the original price. >> if it is too rich for your blood, you can always go down scale for the cross-border version. they are not really knockoffs. they are more of phone on your wrist. it has a simple card. you can talk on it like dick tracy did. they come in multiple colors as well. the best part, it is just $780 hong kong $100 u.s. >> most of them were focused on the pricier apple watch. this sounds like scalping but here it is perfectly legal. that is why you see a number of different vendors lined up along the sidewalks. they are not selling the apple watch. they are buying it so the

expect goog toll say more about their youtube music offerings. they're doing some shifts there along with google play music. apple coming up with wwdc. t to hear what they're going to do with beats music. all of these things coming into competition with each other and netflix, sorry of course spotify has that multibillion-dollar valuation, we'll see what they do in terms of exit. but lots of different content players coming into conflict with each other, trying to get value out of the subscribers they have through advertising and through subscribers. guys, back to you. >> thanks so much, jon fortt, live new york city outside the spotify event. let's throw up shares of pandora. pandora as you might expect is down a little bit, anyway. there it is, 2.5% or so. perhaps related to that news. >>> coming up, debating the airlines, southwest, american, delta among the worst performers today. how to play the space. >>> plus american pharoah's race for the triple crown is just one of the big sports stories happening. >>> plus last night's nba draft lottery. the latest in deflategate, much more, when we come back. the network that monitors her

apple watches are more expensive in china. plus, i could not even find any. >> i didn't expect this craziness to happen. ink people are going up to the apple watch because there is limited supply. reporter: a sense of the market prices, the most expensive one he has sold his 10,000 hong kong dollars. about 1300 u.s. dollars. the list price is $700 u.s. almostwant to pay doubled, you can early adopt ite in hong kong here it >> is new, that is why i want to try it. but i'm guessing i will pay way more. isorter: if you think $500 too rich for your blood, you can to the cross-border version. they are not really knockoffs, more of phone on your wrist. it has a thin card you can put in there and you can talk on it like dick tracy did they come in multiple colors. the best part, just 780 hong kong dollars, that is $100 u.s. most customers were focused squarely on the pricier apple watch. this sounds a lot like scouting, but it is legal in hong kong. that is why there are a number of different vendors. they are not selling the watch, they are actually buying it. then they sell for a premium on the mainland an. 5

expect improvements to google wallet because apple pay is eating google wallet for lunch. >> a lot of people using it. >> yes. >> you just said eating lunch, eggs, got anything, bacon? i'm hungry right now. i'm soerry. >> i'll go get you some. >> thank you very much. >>> are you seeking more silence at super time? the government may soon be able to help out. they just announced a new effort to crack down on unwanted robo calls. automated calls from telemarketers and scammers that often ignore the do not call list even if you put yourself on the do not call lists. the ones that come during dinner time. next month the fcc will present a new proposal miking it easier or companies to block robo calls and spam text messages. >>> dramatic increase in std rates could be in thanks to the rising popularity of hook-up apps. a study by the rhode island state department reveals cases of syphilis increased by 79% between 2013 and 2014. gonorrhea was up 30%. hiv by almost 33%. the department believes the report is reflective of a national trend. they say casual encounters prompted by dating apps li

expected. the display maker for apple cut jobs and received financial support from maine lenders. loss that ended march 21st. more on all of those stories on bloomberg.com/euro. manus: one of the key companies that make the internet work. the largest manufacturer of networking equipment cisco reported net earnings last night slightly ahead of expectations. joining us now is cisco's president of europe am a the middle east, africa and russia. are you as optimistic that europe has turned a corner? >> we saw this five quarters ago so we have seen five quarters of consistent growth. 2% across but that was because without russia it was over 4%. we see that optimism and the focus that companies have in generating new revenue streams and focus on growth. manus: is it fair to say it is a battle against software developers? the traditional products you sell are the ones that really shown through last night. is that pattern repeating? >> there is no question. it is all about the speeds of conductivity and particularly because of video. whether you are in business, it is all video. your incr

apple is expected to unveil the home kit and could turn the system into garage doors and looks.e road as soon as this summer. how worried should we be and what can we do to protect ourselves? eric is a senior editor with them. i want to start off with you. set the table in terms of the devices. any time you hook up anything whether it's thermostat or a lock or a smart coffee maker to assist them it is hackable. >> we have to think about the devices as computers. in many cases they are rung an operating system for a computer. they can be accessed with the same techniques that can be used to hack a computer. we found that we did a story on this last month where the security software firm looked at numerous devices and found that a lot of these garage door openers and home cameras and different devices used to connect different things around the home could be hacked as readily as computers. >> they are not going to bother hacking in to turn your coffee maker on. what is the biggest risk here when it comes to personal home devices being connected to a network. any time you have a de

expectations. manus: should we ask our next guest it includes the likes of apple.e such declines, do flashing lights go on? or are there declines for a reason? >> i'm not the right person to ask. i have hated this whole sector. i missed out on origins. -- fortunes. these are bubbles. momentum stocks. when momentum falters, even as you said, ryan, the growth was there but not at the exalted numbers the market has hyped it into. this is what, $20 billion ? ryan: $31 billion. stephen: a lot of money. mark: is your reasoning different? stephen: in certain stages in the economic cycle, growth stocks do better. when growth is accelerating, it is obvious that strategies based on growth to exceed those that are not. i don't think we are at that stage in the economy. we are at a stage of the economy that is slowing down. some people talk about skirt lengths. manus: this is quite a night when stephen isaacs decided to talk about skirt lengths. ryan: if you look at share price growth, since the inception of linked in, the closing price on their first day, it rose to fold. --

expect to hear about improvements to google wallet. apple pay is eating google wallet for lunch. >>> i don't normally talk about movie reviews but i'm going to in a minute. the movie "aloha" with bradley cooper and emma stone hits theaters this weekend. >> i'm tempted to say menehune. like hawaiian leprechauns. >> or ship munks. >> did that make sense? >> no. one critic called this movie a mess. it makes no sense, she says. it's ridiculous. what's sobering is this is the assessment of amy pascal the head of sony or was at the time of this movie. her assessment of the movie, which was just wrapping up as sony was hit by hackers, says as much as i like the actors this movie doesn't work. not once. let's mention "san andreas," the movie about the earthquake. is this a marketing ploy or coincidence. this is a rumor going around that california is going to suffer a huge earthquake today due to planetary alignment. if you are intelligent enough to be one of kris's viewers, you know this is not true. you cannot predict earthquakes, kris, as you wel

apple is always is. masters at creating hype and expectation. i'm not totally convinced that everyone is going to want one of these yet. >> matters at creating hype. maybe, dennis, but not so masterful in the delivery of the devices. in the beginning, the fact that it will be available broad entry retail, does that signal that maybe the company has a grasp on what inventories should look like for this? >> people were upset with them about the mode ort mechanism inside the watch that wasn't working so well at scale. i don't fault them for that. building these hugely intricate devices at scale is not easy and so you have to give them a little slack on that. i think in a way keeping scarcity on the item has helped its image in the first few months of its launch. >> i think it's actually, whether by design or fiat, it's worked pretty well for them. >> still, a lot of people guessing how much of the installed iphone base they can sell a watch to, dennis. are you, are you on the skeptical or optimistic side of that number? >> the lame uninspiring answ

apple tv at home. >> you're familiar with exactly. also they're expectedide developers conference a new bundle of television channels that stream on the ipad and iphone. melissa: yeah. >> that really is where the money -- melissa: i mean, to be clear, he wants them to make a device, an actual television with all of the gear inside of it as opposed to the little box. >> exactly. he told -- melissa: why wouldn't they a want to do that? >> it may just be a moment where tv may not be the right thing to invest in, that integrated tv set, because it's very expensive to make, the margin ises are very low, you're competing against all these companies that are just killing it in that space. maybe this is not the right time. remember how long it took for apple to get into the watch, all of these companies were in the game, samsung had the gear fit and apple comes along and says okay, here's our plan. melissa: yeah. >> so that timing could definitely be similar for the tv. melissa: when you look at the way they revolutionized the phone, the ipad, maybe carl icahn jus

he thinks apple should trade at 18 times what he expects earnings to be. s where you and carl differ. you think next year apple is going to generate 9.5 dollars a share. dean yell: a number could be close to $11. erik: your report says $9.58. daniel: what could be the upside? it is china. it is wearables. stephanie: once people are in the apple ecosystem, they never want to come out. think about the value proposition is apple versus so many of these tech companies doing what for whom and providing value where? erik: that does not justify a higher valuation for apple. stephanie: all of the evaluations out of control do we see them normalizing? apple makes a time of dough. daniel: apple is the standard. larger ipad, they will give some breadcrumbs on the apple tv. these are key ingredients in that recipe for success. china is front and center. it comes down to a $150 billion market opportunity. china is going to be the number one market for apple. stephanie: how many people do you know are wearing them, but they do not know if they love it. people want to tou

apple and android devices. >>> tens of thousands of people are expected to come out to the napa valley expo center this weekend for the bottle rock music festival. that event features dozens of bands on several stages, along with local beer, wine, and a whole lot of food. ktvu's cristina rendon was there as the festival got under way today. ♪ >> reporter: opening day is not disappointing the thousands that have descended upon bottle rock napa valley. >> i'm pretty impressed. i think it's amazing. the weather is beautiful. decorations are cool. >> reporter: there's music, there's dancing, there's food almost everywhere you look, and of course there's wine, wine, and more wine. >> back in the back we have a bunch of wineries and they give you glasses. i got two glasses of wine. going to go sit out and listen to music. >> reporter: the musical acts started around noon, gearing up the crowd for tonight's headliner. >> that's what's good about a festival. you get a taste of everything where you might not just go to see one band. >> reporter: but getting to bottle rock is causing a bottleneck into napa. jay jamison

that this tv set, actual physical tv which apple has not yet produced, may not be hang any time soon, and carl, the investor you were talking about was expectingnch tv. >> forgive me. i've heard about apple tv. >> yeah. >> and i don't think i'm completely -- >> let's get up to speed. >> completely lost in the tech world. >> sure. >> but i thought it was just a box . >> so right now apple tv is just a box. you're correct. but what the other ambitions were to create an a tv set. >> the hardware. the thing you put on the wall. >> yeah. exactly, steve jobs wanted a integrated tv set but now perhaps we're looking at software streaming we expect in june to see something with a bunch of tv networks streaming their stuff to mobile devices like iphones >> but they're hardware and software companies. >> yeah. but what makes the siphon so that you think in addition to the hardware is that the design works better than some of the others, at least that is what analysts say this is the moneymaker for apple, this is a big game changer, carl not necessarily commenting on the situation as he calls for a bigger buy back and $240 stock price target. >> yeah. wel

expected to follow after rains. >>> up next, why an ex-nfl player is back behind bars overnight. >> apple has discovered people can text you with a code to shut down your iphone. details at 6:00 a.m. >> new this morning a california man was fatally shot by his friend as they tested out a bullet proof vest. he was in court yesterday for firing the shot that punctured the vest. detectives don't believe he meant to kill his friend. he faces one count of homicide. he is in trouble for having a gun, a convicted felon he is not supposed to do. the. >>> this is ray mcdonald leaving the san francisco jail for violating a restraining order after his arrest for domestic violence and child endangerment the chicago bears released mcdonald 6 hours after the arrest. >>> a man exposed for catfishing or pretending someone he is not on social media is in bigger trouble. coleman is expected in court today. he is accused of calling in 11 threats not washington, d.c. metro system and reporting an attack on the approximated of president's motorcade. he was ed. >>> tracy morgan settled his case with walmart. he saids grateful. morgan s

apple watch. when you see that degree of price compression, what i'm always talking about is the functionality gap is narrowing, right? and the price gap continues to widen, right? the asps people expectbe around $500 versus 15 at the low end. apple will serve the high end market customers. the mass market -- usually apple opens a marketplace and then they start to lose market share over time, right? like they've done with the phone, right? they had a predominant percentage of the smartphone market. now they're down to 2 out of every 10 phones sold. >> but they're still going in terms of gangbusters in terms of revenue and profitability. what i would push back on is they can have a new entrance in the market but they're not competing for the same customer. does it affect apple if xiaomi wearable band because they're never going to buy apple. >> what happens when this gigantic revenue pool from the iphone slows down or, worse, even turns negative and does this make a vacuum that apple wants to try to layer new products on? can they fill this hole that could be happening? we know the smartphone market is slowing down. it's going to grow 11% in 2015. replacement cycles are going to lengt

. >> we're going to talk about hp earnings who manages expectations better than meg whitman? >> applenother week another $1 billion uber is looking for, this time as a credit facility and the ceo of intuit in an cnbc exclusive coming up on "squawk alley." >>> good morning, it's 8:00 at hp kwaerksheadquarters and 1:00 a.m. here at cnbc headquarters on wall street and "squawk alley" is live. ♪ ♪ ♪ >>> good friday morning, carl quintanilla is off today, joining me is roger lee partner at battery ventures and simon hobbs is here for the hour and with us as always is jon fortt. guys, good friday to all of you. let's kick it off with hp. shares are sharply higher today, after profit topped analysts' estimates. the company also saying it expects lower

visiting china and apple stores as we would expect. he shared this with the u.s. students. bring the message home and use social media about china and the company strategy in china. i had of that visit to china, the company made an announcement of environmental initiatives for apple. the supply chain trying to improve sustainability. tim cook showing off and opened a account to reflect on his visit and telling things to students and teachers. great is the innovation. and the difference and the classrooms and we are proud that ipad is a part of it. he had to get the plugged in. the appleof him in stores. i dong at that closely, not think he has an iwatch on. rosalind: maybe he forgot it? back to you. rishaad: thank you. dangerous course. andle facing extortion possible rejection as they reach for life. ♪ dd [beeping] ooo come on everybody, i think this is my grandson. [lip syncing] ♪little girl you look so lonesome oh my goodness. ♪i see you are feeling blue ♪come on over to my place ♪hey girl ♪we're having a party happy birthday, grandma! ♪we'll be swinging ♪dancing and sin

drivers should expect heavy traffic on the dumbarton and bay bridge all welcome. you can join apple app and google play for free. >> now more bad news for the new eastern span of the bay bridges one of steel anchor has failed a test rusting and break during the years it was soaking in water. this increases the odds that hundreds of other rods could be in dannyer. problems could reduce the stability of the bridge tower during a major earthquake. caltrain hands to perform more tests and figure out what they can do to salvage the situation. >> now a check on the weekend forecast. here is meteorologist mike nicco >> starting in san francisco, we have 47 degrees at west portal and that is the cool spot. ocean beach is about 50. crissy field and mission district is 51. along with bay you have and downtown, the ferry building, 52 degrees and the financial district is 51. low 50s around belmont and union city. richmond is 53. pittsburg is 52. santa clara is june. saratoga is 50. everyone else in the mid-to-upper 40s. north bay inland, seven to nine degrees cooler than year. do not be surpri

that was one of the great moments of what did you out there apple is not setting any expectations. >> not yet. i don't need to explain why the biggest gainers are sky works, broadcom avago and altria right? >> sky works, got a nice price target gain. remember stop pri, the great runner in the '70s? it's about stopping aldridge. >> you love this guy aldridge. >> i love this guy aldridge. i am from the great man theory david. >> this is a love affair. >> bromance. >> bromance. >> shares of yahoo were up almost 1%. normally we might look quickly at alibaba and say was that up on some news? yahoo japan was up over 10% in japan. on news that it is going to be doing something in terms of chinese e-commerce teaming with alibaba. soft bank owns a huge stake and owns a lot of japan. and big move for yahoo. over 10%. want to get to altria this morning since jim mentioned it. stock is up -- sorry. let me take a quick look. about 5%. a new york "post" story says they are getting closer to a deal with intel. i don't know. what i can tell you, they are talking. that is altria and intel continue to