the ftc was so adamant.rnst young leaders feared that the ftc would take exception if they chose to withdraw from the case. oh, on the one hand you are harassing twitter and then you are saying the guy we have selected ernst & young the accountant we selected to be the factfinder you better find what we want. if you try to get out of it we will retaliate against you. that is frightening. we talk about the weaponization of government, tell us the journals you were talking to. that is what we are concerned about that is what has to change. you can comment if you want. i am reading from motion filed today in court. it is amazing to me you do not even know who this person is. your lawyers deposed him for he is the guy you set up as the factfinder and you did not know who he was did you sign up on any of those 12 letters sent to twitter in that timeframe? we are fortunate to have a lot of work underway a lot of work is delegated to the front line staff that are able to move quickly and nimbly to make sure progres

similarly in 202083% of ftc employees agreed they had at the highest level of respect for ftc senior leaders. again in 21 that dropped to 49% and in 22 to 44%. in 2020, 80% of respondents agreed senior leaders generate high levels of motivation and commitment in the workforce. under your leadership that has dropped to 42% in 2020 and 36% alarmingly in 2022. so i think my question quite frankly is why is it so unpopular to work at the ftc? >> we have a fantastic career staff fighting for the american people and looking to protect them from unlawful business practices. i take those results seriously and we've been engaged in a series of steps to make sure the ftc is a great place to work. i've been thrilled over the last couple of years we've been able to on board hundreds of new employees. the other monthly launched an office of technology within a matter of a week we got a 600 applications. technologists either data scientists or engineers highly qualified people who want to come work at the ftc to make sure we are able to use their technological expertise to continue to do our work

it is not unique to the ftc. there are other, shade of agencies including securities and exchange commission have a similar feature and the challenges you're are seeing in the court to this type of administrative adjudication is happening agencywide. peter: let's turn to the merger guidance you mentioned. i think arc -- they are seeing --seen has a significant departure. in the context of that, you have referred to and i think you did your opening remarks also, something that you have sent with regard to losing cases, you are following the law. the law has not changed. the guidelines have so i understand the economy has changed. is it really, you are mechanically following the law or is the law elastic enough to allow different interpretations of it because if not, how do you explain a significantly different set of guidelines unless they are not following the law? chair khan: what we did when setting off on this revision problem -- process was to make a list of every litigated merger decision starting with the s

and the decisions prior ftc said made. i could see how that critic being put into this position could create some friction. i should have and her team should have done a better job making clear this types of critiques were not intended and innate way to impugn the integrity or questioning the talent and skill of our career staff all these decisions are made by radical leadership you what to be very clear when they are signing any of that responsibility. i think the other big thing is or spent an enormous amount of learning over the lastve decade. the policy choices and the theconversations happening today are very different from the ones that are happening even when you are in government and partly that isy because we worked a l. it's okay to be revising or re- or entering our approach may get me getthe new evidence and new information or look back and make determinations about where there might need to be a course correction. i think all of that is very healthy. and again feel very honored to be serving day and in day out

n in the ftc act. so the idea that ftc could declare ano act of congress, and a different title of u.s. unconstitutional is completely beyond -- . but that's what district courts do on a day-to-day -- under section 31. >> n i ask mr. clement about the scope of your nt. sometimes, as you just onded to justice thomas, your focus ve specifically on this case.tional claims in in particular, the thunder basis an lends itself to that kind of fo you other arguments in your brief that you know, sometimes you cam the plain text argument, or just about th 1, and review provision interact. ild seem to go much further. it would seem to in, not statutory claims, and it would seem to sweep in many preliminary rulings, yow, truly, truly locking rulings of the country. it might dentiary rulings. it might be discovery rulings. but sothose statutory arguments would seem to ex way beyond the, the constitutional claims that sue here. so which are you really arguing. >> i really arguing to win this case on the thd basin fa

we are in force in the ftc act words of the ftc act or unfair methods of competition. that is the standard where we are enforcing we laid out a policy statement last year that laid out in great detail what that standard means reflecting the century of case law pickups i'm out of time i will look at your explanation i appreciate your time today thank you. >> we are going to take a five minute recess we are going to strictly adhere to that it will be five minutes. [background noises] [background noises] kirks recognize a gentle lady. >> i'm sorry. both the texas folks of the florida folks are going to get mad at me now by. >> pay. >> thank you, mr. chairman. good afternoon chair khan. i would like to focus our attention on the recent notice of rulemaking and for changes to the pre-merger notification form requirements and instructions. so this new proposed rule would require submission of substantial additional documents from what is currently the status quo including draft agreements and term sheets as opposed to just a final proposal for review, information about credi

just remind us why the ftc are doing this? , ., just remind us why the ftc are doing this?they are really concerned that there is going _ this? they are really concerned that there is going to _ this? they are really concerned that there is going to be _ this? they are really concerned that there is going to be just _ this? they are really concerned that there is going to be just too - this? they are really concerned that there is going to be just too little i there is going to be just too little competition within the gaming world that if this takeover of activision by microsoft happens, microsoft will end up being an absolute giant in the gaming world. the $69 billion deal will have been the biggest deal made in the gaming industry. it is a massive industry, during the covid lockdown, we saw that gaming became exceptionally popular. so that is why the ftc continues to fight because they are saying that this is going to be a detriment to the entire gaming industry. there will be too much power resting in the hands of microsoft. haifa be too much power resting in the hands

and the ftc, if it proceeded to appeal to the ftc, he's right that the ftc could not declare a federal statute unconstitutional. but it could say here's what we think of as the strengths and weaknesses of getting removal protections to the aljs, coming at it from a position of expertise. make, in ftc versus standard oil, the court said we don't anticipate that the agency in the course of the administrative proceedill reconsider its original ination that there was reasonto believe a violation had occurred. sothe justification for differing review was not with thecourt expected the agency to more light on itin the coursets proceedings. >>and the remedy i assume that they would like is a injunction againstving to appear before a commission or a al they think is cotionally so how did they get t remedy at the court level? >>i think the remedy they would be entitled to at the appellate courtlevel would be making sure ofa cease and desist order and get the court of als that our rationale for taking the cease desist order is that we think the aljs are unconstitutionally insulatedfrom removal.

the ftc plans to appeal.she walked into the hearing room earlier, i asked why she was appealing and if she thought it was successful but she did not answer. caroline: she's answering questions now. we appreciate the time. we will stay in washington with a former ceo of celsius is charged with fraud and is now sued by three regulatory agencies. we will have all the details, this is bloomberg. ♪ t possible. - with going, i get really, really good flight deals all over the world. - anytime, like now. kids, time to go! - where are you going? sign up for free at going.com. caroline: welcome back to bloomberg technology. checking on the markets, we are higher because inflation is cooling. we had cpi yesterday and ppi today and it added fuel to the nasdaq 100 with big tech on top and the two year yields is just a touch lower. it's lower by 13 basis points. we are seeing bitcoin getting higher as the euro-dollar is slightly lower. amazon prime day or days did well, up more than 2% for amazon and alphabet is getting a

this is one of your lawyers testified ftc's conduct made him feel as if the ftc was trying to influence the outcome of the engagement. he said in some discussions we were having with the federal trade commission, expectations were conveyed about what the results should be before we begin any procedures. the independent assessor the ftc has with twitter and you are telling the guy, whose the person? use the accountant to get the information telling him you're putting finger on the scale telling him what the outcome should be. why are you doing that? >> i'm not familiar -- >> this is your deposition. >> i'm happy to take a closer look and get back in touch. we want to make sure assessor's and auditors consider responsible for overseas clients during their job. >> was been filed in court today, suggestions of what they would expect the outcome to be, they being ftc, a suggestion of what they want him to find in his independent assessment of the agreement between the ftc and twitter. >> i'm happy to take a look and get back to you but our staff are professionals and their focus on cash. >>

it's possible that the ftc will back out. they are an -- it is an administrative court case the ftc still has pending against microsoft, and internal court case that is you know going to happen in the next couple of weeks. caroline: so it is not a foregone conclusion but the market anticipates it is more likely to get done. ultimately, how much of a knock is this to the ftc? they seem to be trying to take on tough cases. malathi: you know this has been a big test for their ability when it comes to challenging big deals. they needed this win. especially after what happened, so close to on the heels of what happened with ftc and their challenge to meta-. it seems like even in speaking with a lot of folks that were in court, with the arbitrage, they were closely watching to see where the ftc might go moving forward. is the ftc actually bringing some cases leading to this losing streak? do they have to perhaps think carefully about the battles they want to enter and sort of win? we have to think about what happens with the ftc mo

during the bush administration, the ftc launched an office of affairs so over a decade the ftc has beenperation agreements with enforcers around the world where there's been strong support historically from the business community and encouragement from the ftc to be working closely with other enforcers to ensure what some folks call harmonization. that's the state of affairs. the ftc works closely with other enforcers but at the end of the day, we make all of our determinations based on the facts and based upon u.s. law. we always use our independent judgment when making these enforcement decisions. >> why was there a need to talk to the cma about activision and microsoft? >> there are various cooperation agreements in place. some of them going back to the bush administration, that layout appropriate processes. sometimes it's businesses that want to encourage the ftc to be talking to other enforcers to ensure more streamlined review and more efficient information sharing. this has been a long-standing process. i'm grateful the ftc is viewed as a leader internationally and all credit goe

you do not think the ftc will appeal?hey can appeal but ultimately i think there is a better chance of me playing the premier league than them winning. i think this is just a winning. i think this isjust a huge winning. i think this is just a huge win for microsoft and for big tech. i think next week it ultimately gets closed. you never know, you might actually win in the premier league! i want to ask about ftc chair lina khan's vision of anti—trust enforcement. what does this ruling say about her vision and fighting for those views? it is a disaster. it is a disaster. i think this is a black eye lina khan, a black eye for the ftc and i think right now there are more questions than answers. it never felt it had credibility within the industry, within wall street. i think microsoft knew that. they went, it is a flecks to muscles moment for big tech. it could be now more mna on the arise and with the ftc losing this battle. dan ives speaking to me earlier. let's turn to golf and the mega merger between the pga tour and the

the ftc's overreach culminated in a demand to depose mr. the consent order. since elon musk has butted heads with the biden administration over free-speech and buddies, also facing regulatory scrutiny at tesla. stuart: thank you, professor brian brandenberg is still here, the attempt to crack down on big tech basically failing. brian: lena con is on a mission to go after anything happening in this economy but 22 times in a decade twitter. a demand letter from the ftc. musk got 16 in less than a year. you tell me there's not an agenda against elon musk? stuart: tells the story. evaluation of elon musk's space x sword after a sale of shares by existing investors. some people can invest privately with space x at not tesla. how much are we talking about here? ashley: close to one hundred $50 billion, reports a space x has an agreement with new and existing investors to sell up to $750 million in stock from insiders, $81 a share. the company established a near monopoly on the us satellite market, space x has sent up nearly 5000 of its starling i

. >> microsoft has actually won the case against the ftc for the -- ftc was seeking that preliminary injunction blocking the deal the judged has denied that preliminary injunction, meaning microsoft will likely try to go forward here in the u.s. to buy activision for $69 billion we have lines out to the ftc and microsoft about what that means. one other aspect here is this is not over, sara, because the cma, the regulatory authority in the united kingdom is still going over this case they're not expected to have a hearing on this until the end of the month, which is past the july 18th deadline still a lot of questions about how microsoft can button this deal up. >> steve, thank you. steve kovach seeing the reaction in activision shares up 4.3% or so want to get to david faber joining us on set. he's on the phone, of course clearly, this was a surprise, at least -- david had been reporting it was sort of moving this way and through the courts but you can see relief in activision shares. >> there had been so much momentum for those who argue that this was going to be a difficult deal t

the ftc is working on new merger guidelines.ll be an opportunity for them to educate judges and make it more clear that vertical mergers can be harmful. but that is also an area congress can help with. caroline: many would see this as a relatively democrat heavy ftc. charlotte: certainly there are no publican commissioners at the ftc right now. but that is on the people who need to move forward with that. but there has been why partisan interest. there were multiple bipartisan bills that passed through the judiciary committee with bipartisan votes. republicans are also interested in the enforcement and that is how we get the free market functioning correctly. caroline: thank you, your previous expertise working with the ftc and now director of public policy. coming up, how american express is trying to take on the world with the help of fintech, more with american express raymond joabar. this is bloomberg. ♪ - [mo] if you're thinking about going back to school, this is for you. ♪ - i ended up spending less money my entire time a

most observers of this process are thinking this is part of a bigger step back by the ftc.hery: take a look at how u.s. futures are trading at the moment. a little bit of a muted session early in the asia trading hours. we are not necessarily see much because we finished already next. investors were being pulled in both directions. the dow slightly higher but the s&p 500 losing ground, reacting to the disappointing tech earnings. the nasdaq 100 lost more than 2%. not to mention we had more resilient labor market data. that led to treasury yields being pushed higher, which did not help tech. we had the dollar also gaining ground and reversing the losses we had seen earlier. we are talking about that drop in weekly initial jobless claims. really another sign that traders might be pricing in on the quarter-point rate hike beyond next week. haidi: much of that repricing when it comes to how labor markets quarterly are performing in the face of an aggressive cycle of rate hikes, we are seeing this in australia as well with the resilient labor market conditions now repricing expe

the an i trust drumbeat appears to be growing louder "politico" now reporting the ftc is finalizing a lawsuit against amazon it's focused fair competition in its prime business and the ftc could look to break this company up what's your take on this >> yeah. very big report. and i just want to dig into some of the key parts of that report. "politico" reporting that the complaint is likely to focus on challenges to amazon prime the rules blocks prices on competing prices and they think merchants are using amazon's logistics and advertising services the ftc has interviewed dozens of witnesses inside and outside including ceo andy part of it. it will be around the way they bundle its products to boost its market power part of it will be around other practices including advertising. they filed a kplainlt in the federal court rather than its in-house tribunal. if the ftc is succesuccessful, t could have huge implications it hasn't been hugely successful in lina khan taking on big tech. amazon shares are lower, frank. >> microsoft and amazon down, alphabet up big. arjun, thank you very much

they are not buying these new theories. >> chair of the ftc, the ftc commissioner. thank you very much. expertise there. the court cases keep coming. the loss of a federal court decision on a crypto case involving labs. potentially narrowing the sec's oversight. more on that next. this is bloomberg. >> long-awaited. ftc versus ripple, and it is sending this into a frenzy with prices soaring. the ruling, xrt, associated with ripple is a security, but offered to institutional investors, and not the general public. we are here to break down what is a nuanced part. the take for many is the sec doesn't have some grounds. >> importantly, i think the individual investors need a purchasing ripple that is not secure through the buying of public exchanges, so remember that when the sec sued them, they were really suing on the basis of more than $1 billion worth of sales, and half of that is covered as not secured. the other half, the institutional half is worth looking at. the retail part is interesting because if you look at this put together by the sec, there are more than

that the appeal the ftc made now it requires the night u.s.ourt of appeals to grant the stay by midnight san francisco time on friday, or the deal can close in the united states. it is not as straightforward as that in that the u.k. regulator still has to have a process that is ongoing, but that is where we find ourselves, and this is all about the decision he made july 10 by the u.s. district court in san francisco, which rejected the temporary injunction to block the deal. that is why it is interesting. kathleen: what is going to happen next? it just seems like such a huge victory for microsoft, the ftc will not sit back and they will probably find it with everything they have. >> they are arbitrage specialists, the odds are still 80%, 85% it is going through with the latest developments in the ftc. people here see it happening. there is a lot of conversation around someone because of what she said on the hill today. she was called a bully. there was a lot going on in the world of technology and media. they have other things to worry about.

proceed with the 69 million-dollar acquisition of the videogame maker to feeding an attempt by the ftc to block the deal. the ftc filed a limitary injunction to stop the acquisition fearing that microsoft might hold activision's content leaving to too much control over the gaming market, we have kelly o'grady covering the story, she is the latest moves in the fast breaking story. >> it's great to see seo is a big win for microsoft, the ftc was looking deposit the merger before july 18 closing deadline the case can head to a scheduled trial in august that the judge did not find reason enough to do that so she shared this on the decision, the ftc has not shown the likelihood that it will prevail on this particular merger in this specific industry may substantially lessen competition to the contrary the record evidence points to more consumer access to call of duty another activision content. i listen to the five days of hearings leading up to the decision in microsoft made a number of commitments to keep call of duty widely accessible including keeping you on playstation for ten years, t

of ftc enforcement and the consolidation enforcement. we'll have to see how it plays out. there's another presidential election coming up in 2024 if a new administration comes in with a new view on this, they could change the guidelines once again. >>> be sure to catch ftc chair lina khan and antitrust chief jonathan kanter this morning. >>> let's get a check of our top earnings stories silvana henao is with us >> american airlines pilots is warning its contracts are in jeopardy they're going to vote on a four-year contract which includes a 4% pay increase and other benefits but reuters reports in a memo the union says the proposed pay rate and quality of life terms pales in comparison with united's tentative deal. a spokesman said the company will work with the union to make sure the pilots are taken care of >>> shares of carvana are tumbling after the auto online ret retailer tumbles they're supposed to post a second quarter loss. shares have rallied more than 6%% th 600% this year and microsoft shares are trading at a record-high the

judge made a decision, no jury in this, just a federal judge in san francisco basically, saying the ftcldn't make its case that by buying activision they would -- that's the thrust of this. >> we're continuing to layer in more news. let's brick in david favor with an explanation activision shares are at sessions high. >> they may be at $95 a share, because i think it looks increasingly likely that microsoft is going to be able to close this transaction as soon as monday. and prior to the expiration of the merger agreement between the two parties, which is july 18th, kelly. it's stunning. i termed this deal mostly dead sometime back when the uk's cma had issued an objection to the transaction. but it is very much alive right now. let me give you something i've been able to pick up around the cma process. you were speaking to steve about this big loss for the ftc in court in san francisco and that will allow microsoft to move ahead with closing the transaction. the cma has remained a key stumbling block issuing its objection to the transaction that dsaid, we got interesting commentary fro

>> yeah, like a soft one is case with the judge denying ftc's request to block the deal.till has the option to appeal by midnight on friday, and it is unclear for now they will do that. in the meantime, our data favorite reporting, microsoft deal nearing a deal with uk regulators, the companies and markets authority after it rejected their transaction this spring. they were saying metasoft offered to divest part of its business, and could close the deal as soon as monday. as for the ftc case, the judge says it failed to prove microsoft would remove activision's hit game, call of duty, from playstation and make it exclusive to xbox. she also said ftc failed to prove microsoft would have an unfair advantage in cloud gaming. the decision raises questions about the ftc track record under chair khan, but it will continue. we are inspecting the ftc to sue amazon as soon as the summer on antitrust grounds. >> at beyond the metasoft story, let's focus on the gaming industry, because electronic arts, 5% gain today. take two interactive is up almost 5% today. presumably on -- okay,

but we are now hearing the ftc could file an appeal listing is wednesday. judges order pause in the deal that expires at midnight. shares rising 10% on tuesday when it comes to activision. bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime. >> this would change ukraine's membership path for a two-step process to one step. we also made clear that we will issue an invitation for ukraine to join nato when allies agree and conditions are met. >> u.s. secretary-general on ukraine's pathway to membership. ukraine's president has slammed the alliance's language on its hopes to become a member. bloomberg's and marie has more from lithuania where the nato summit continues. >> nato leaders are promising to invite ukraine when members agree and conditions are met. but when those conditions are met they say this will be a swift ascension process really trying to break down some bureaucracy that comes with a country becoming a

is 0-4 when merger challenges and why the ftc brings those cases to courts.ake a listen to that exchange >> we fight hard when we believe there is a law violation and, unfortunately, things don't always go our way. we make determinations -- >> are you bringing cases you expect to lose >> absolutely not. >> meantime the ftc in a legal filing last night telling the court it intends to appeal the loss in its case against microsoft seeking to block the tech giant from buying activision expecting the ftc to file that full appeal later today. timing could be worse for microsoft, though. it agreed with activision to close the deal by july 18 and is under a temporary restraining order not to buy activision until 11:59 p.m. tomorrow. now can the 9th circuit make a decision before that order lifts? and if it can't, will microsoft go ahead and close the deal anyway overseas regulators in the united kingdom gave microsoft an opening to alter the terms of the microsoft deal putting its case on pausesaying it will pick it up if the new terms don't satisfy. if microsoft can

remember, congress authorizes the laws of the ftc operates under and the financing for the ftc, right enormous amount of power. obviously, the republicans in the house will have to deal with the democrats in the senate if they want to do anything unilaterally, that's unlikely. these agencies do report to congress so this is the head of an agency reporting in to her boss, so to speak. >> pretty interesting. if you can't win in court, how do you convince congress to change the law eamon javers in d.c. >>> quick programming note, if you want more on the disney interview with faber, tune in tonight, 8:00 p.m. eastern time for the full interview with bob iger a lot to dig into regarding both disney and the media industry at large, which is going through a lot today. dow losing some gains. up 46. "squawk on the street" continues after this ♪♪ at morgan stanley, old school hard work meets bold new thinking. ♪♪ at 87 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. old school grit. n

the average win rate for the ftc in the modern era is around 75%.d you repeat that? >> are you bringing cases you expect to lose. >> absolutely not. >> okay, your track record seems to suggest otherwise. cheryl: meanwhile, in the last hour the ftc requested a stay of court which would prevent the close of microsoft's controversial 69 billion-dollar acquisition of activision blizzard. here to discuss this now, charlie gasparino along with former u.s. antitrust enforcer khan rahim. great to see you together. here, charlie. >> deputy attorney general, did i get that right? >> you gave me a promotion t was assistant attorney general in charge of the antitrust. >> you did run the antitrust division. the ftc is asking for a stay. they lost, they got slammed by the federal courts. i have not seen a ruling like that in a long time. was humiliating loss. makes me think, biden regulatory apparatus, important areas like ftc, your old place, antitrust, way too political? they're all political you were a political appointee by donald trump but you guys followed

stricter guidelines for mergers down the line we're going to speak to a former doj insider about the ftc chair. but first a check of the markets which are largely higher today, tyler. we have the s&p up about half a percent. 4561 is the level there. the dow right now 224 points and the nasdaq eking out a gain as well. but of course this is all ahead of a very big week with a lot of market moving potentially catalysts. >> very much so. between the fed and all of the earnings that are coming out ahead it is a big week for mar markets. wall street expecting earnings from some 550 companies. about 40% of the dow apple, microsoft, meta all on deck and while we await another fed decision, that is there on wednesday at 2:00 p.m. let's bring in jack ablin, crescent capital's founding partner and cio. let's start with earnings, why don't we which ones will you be looking at most closely? and if corporate earnings are coming down as many predicted, why is the market going up >> i'm scratching my head with that one too, tyler. yeah so i want to look at tech earnings tech is really the only sector t

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it is a loss for the ftc.s the companies can persuade ftc commissioners to either drop their objection completely or just settle this somehow, agree to a small divestiture. shery: is that the worst case scenario? vonnie: the worst case scenario would take a long time. in the worst case scenario, the ftc could opt to restart the in-house case, even if the merger closes. imagine if that were to happen, they get past the u.k. competition authority, then the ftc does reopen the case in its in-house judicial system after the merger has happened. then the merger would have to be unwound. we are talking about a long time away for that. several decisions have to be taken before that even becomes an option. shery: given how high-profile this is, companies have been watching what is happening in this deal. what does the environment for deals look like? how could that be impacted depending on what happens here? vonnie: the ftc released 13 guidelines for companies to be watchful for. the ftc had a terrible track record ov

kick pain in the aspercreme. >>> welcome back it is a super busy day for the ftc. agency first of all filing its appeal to pause the microsoft activision deal. and also reportedly opening an investigation into open ai over consumer harm. this morning, chair lina khan appeared before the house judiciary committee. steve kovach is here to break it all down for us. >> i'm going to do it in 90 seconds. khan spent an hour under questioning today in the judiciary committee. coming out today, "washington post" and others reporting the ftc opened an investigation into open ai, that's the company behind chatgpt now, while khan didn't comment directly on an open investigation, she did talk about her broad concerns the harm ai can cause. here's what she said >> there are no checks on what type of data is being inserted into these companies and we have heard about reports where people's sensitive information is showing up in response to an inquiry from somebody else, we have heard about, you know, liable defamatory statements, that's the type of fraud and deception that we're

they knew that the ftc has been policing mergers under the ftc's lina khan particularly on these bigthis merger was immediately in the ftc's bull's-eye, so a big win on that front. microsoft has had their focus will now turn to the u.k. and many antitrust experts are cautioning that the british regulator's statement that it stands ready doesn't mean a settlement is automatically a given you are looking at the bloomberg microsoft's cash flow is stronger. this is certainly a shot in the arm for microsoft. it will be interesting to see how the stock continues to perform as these legal issues go forward. big focus on the ftc and its ability to block these mergers. the judge pointed out that it felt microsoft had done a lot to ensure that there would be no harm to competition. critics however have concerns that microsoft will use its new leverage to disadvantage competitors. this is the biggest deal to take place in the gaming space ever. back to you. david: ever and forever. su live for us out of new york. obviously a stop to watch as we approach the wednesday session, cpi and before you

the ftc losing over the weekend. a stay on appeal of the loss that they suffered last week. they didn't get it so all signs point to as unlikely as it would have seemed and, of course, you know, i have to say, looking back on my own reporting, i had this thing mostly dead, and now it's, you know, as we said last week, the only real question seem to be, will they be able to close before having an increase of consideration. >> for a while we were talking about activision as a buyer, not a seller what's interesting is that a lot of curtain razors on the earnings print in the next week or two don't really mention this they talk about azure, whether that's a beat or not you know, what happens to capex regarding a.i. i seen morgan stanley goes to 415. so i mean, is it nice to have kind of at this point? >> for 2.5 trillion market cap company that added more in market value than they seem to be spending on activision, even though it is one of the largest deals out there, they added way more on their promise of a.i., i think

what if they had ruled and the other direction in favor of the ftc? this is a blow to them and the cma, the narrative that is emerging. it also opens up the energy behind deals in these sectors in sun valley. our colleagues at cnbc are reporting that there was an offer of divestitures to the cma and the u.k.. i remember when we spoke to bobby in april. what he took issue with was that cma and the concept of cloud gaming. it is a small and relatively nascent part of the games industry. it was about getting access to mobile vision. there were still questions to be asked later in the week, we will sit down with someone from activision and ask those questions. jon: we look forward to that. since this is the place where people like to speculate on deals, we have more clarity for now on this chapter, whether it is artificial intelligence, streaming wins and losses over the last year, i would imagine there are fruitful conversations to be had. ed: i would frame it that some value is back to the historic focus. a year ago, there was only one story in town, th

the ftc is out of the picture. will accelerate the deal to go through. >> you are feeling positive about that what does it mean for the stock to go through? do you mean everything is priced in including the twist and turns and concessions the company has to ake >> i think it is priced in i think the markets have been watching what is going on and they come to the conclusion microsoft would win in the last few weeks. maybe you will see a small bump. let's see how activision adds to the microsoft gaming tools and actually might impact the business and bottom line when you put those two together, there is significant growth and some concerns people are bringing that microsoft might corner off the comepetition or xbox take exclusive ty to the games, that could happen once that happens, we could see something serious with the stock. >> shares of activision-blizzard up 3%. another story we're watching is the tesla truck plant in texas after the two-year production delay. elon musk telling shareholders back in may that te

microsoft winning the case against the ftc to buy activation blizzard.it lead to a flurry of mna? my colleagues then levinson, al root. then, once again, a great week for stocks. what powers the bible this week? >> is the numbers we got. we had a fantastic week, s&p had the best. nasdaq the best since january. a strange we balance will happen in the nasdaq 100 where big stocks got too big so apple and big tech stocks will be knocked down and that caused them to fall but they still had a fantastic week because of inflation, inflation dropped down 3%, it's dropped from 9.1 to 3% faster than at any time since 1952. it's amazing, it means the fed will not raise rates so much and that should set the market higher. >> i like bull markets but prefer hated bull markets to this bull market starting to be recognized as such. the stock etf up 10% this week, it starts to get contrarians worried. >> the stocks whenever you see those things do well, you get frightened but this is the week where it's more about bears saying i'm not sure i want to short these things and

a lot at play for the ftc. also whether they like to drag it out will remain in question. >> i have to be honest, as long as thief is available, that's key. >> that is key. >>> a lot more to come on "worldwide exchange" including one word investors have to note. first, much more ahead of today's cpi record and what mark zan city is telling clients after the release. >>> after a sizzling first half of the year, investors are getting a little worried whether we've come foo far and too fast. and caleb is here taking a look at individual investor sentiment and lay later on in the show, beey hope to crack rort frank is here to dig in on that. a very busy day ahead. >> announcer: this cnbc program is sponsored by ibm. ibm, let's create. well, with ibm, you can use software to help you connect and analyze data— from hvacs to elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something be

she gets the ftc jumper one of my responses was, hasn't it already been filed? this has been inevitable from the day she took the job, because this is the big bad. it is a novel theory. when lawyers hear novel theory, they think long time. i don't think this will be a quick and easy case to do. the record has been pretty mediocre. i think whatever happens here it will take two thirds of eternity. will put a lot of attorneys to very nice summer houses. amazon is not going to roll over and die on this one for a long time to come. i can't process if they prevail or not, but i do know there is common agreement, even among chairman lina khan that there is a novel theory. we are doing something totally new, i'm advocating this theory and will push it all the way. it will be a long one. >> this will certainly be a career defining moment for lina khan, who very much established her identity with these arguments about how amazon machine argues, abuses its market power. i am curious if you think she has a shot at this, and also more importantly, what impact this action wo

the ftc is once again overreached.e stock of verizon , because of the litigation risk. then there are the forever chemical chait cases for liabilities, they have been spending big bucks to try and settle these things. there are tens of thousands of cases of veterans for faulty hearing devices. it's a nightmare they cannot get out of. man is claiming he got a fatal baby powder that may or may have not obtained asbestos. if the plaintiff loses it could be thousands of cases in court, something that would be fantastic for j&j. one lawsuit by disgruntled shareholders and one by generic drug makers who want to mimic it, it is the most lucrative franchise. this company is a walking lawsuit. i have to believe at&t and verizon will face lawsuits for their lead-covered cables. the plainest part right now is probably been prospective clients who have been hurt that and why not? that's how it happened with j&j , that was a reuters story that brought huge complaints against j&j. it can remind me of all the pain and suffering you m

first of all, how big of a blow is this to the ftc >> a big loss. think they put a lot of resources into it. but i read the opinion and the opinion was thorough in two senses, the capsulation of the law and the facts, and i think they got both barrels. >> do they not understand the law? are they trying to prove a point? >> i think it's a combination of both i think they have an idea where they want the law to go, and then they have an idea of the signal they want to send to the marketplace. unfortunately in this case they lost both. >> unfortunately for the agency? >> yes right, for the agency. on the other hand for the marketplace it does signal if there is an opportunity here to get deals done, but those deals are -- i don't expect the scrutiny to end. so it may take longer to do the deals. you i think that microsoft approached this correctly. they came out early on, defined what the deal was, and they also talked about mitigation strategies right off the bat. >> are you seeing any split in the way we think of anti-trust and, say, the europeans? t

let's get eamon javers in here >> the ftc and the s.e.c. are drafting mergers to antitrust enforcement of consolidation the framework released this morning, the agencies will use 13 criteria to evaluate the horizontal mergers, where companies in the same industry are merging, and vertical mergers, where companies in the same supply chain are merging. assistant attorney general jonathan kantor explained the biden administration's approach on "squawk box" this morning >> antitrust gives opportunities for new firms, technologies, to flourish and thrive. what we want is we want competition. we want disruption we want innovators we want them doing it throughout the economy and throughout the country and throughout the world. and that's what we're trying to promote. we're not trying to pick winners and losers we want the marketplace to do that >> the new language updates in case of vertical merger. but the administration's approach to antitrust was blasted as harassment of big business, on capitol hill, just last week. the saying in washington, i