i.b.m.ave put aside some long-standing differences to form a new partnership. we've got details about the deal about the two tech giants together. ♪ >> welcome back to the "best of bloomberg west." apple and i.b.m. have been rivals since the dawn of the personal computing era, but the two companies have put their difference as side in the interest of growing both businesses. apple and i.b.m. teaming up to developance on the iphone and ipad tailored to work with i.b.m.'s cloud services. emily and i spoke with the owner to talk about what this deal means for both companies, and we start by asking how big a deal this really is. >> first, it's how the tables have turned. i.b.m. used to be the company to accept the agenda for technology, and now apple will do that, so that is a really clear sign that we are seeing much weaker i.b.m. as a tech company. secondly, i read a lot of stories about this being a great move for apple. i think it's a defensive move by apple, because they were out of the mar

and which i.b.m. will provide customer service in the corporate arena for apple and i asked carl what apple and i.b.m. get out of this deal and what effect it will have in the corporate arena here's what he had to say. the other guy who gets anything out of it to treat truth. if you think about basic business model with regards to their or their devices that are covered by this which is the i phone and you know there are a whole slew. there are simply replacement models when there is a problem so you you send somebody on the field they give you another one or you send in your device they give you another one really isn't any onsite repair so the the concept of on site support is well limit it would be the nice word or outright fraud would be the better word. the the one thing apple does get is an army of sales people to go into corporations and try to push their products whether or not that has any kind of relevance to their sales rate is another thing entirely i think the answer is no i.b.m. on the o

i.b.m. deal and in today's big deal edward harris and i are discussing the chinese mobile market and the future of apple's growth in da part of the world and other places plus remember you can see all segments petered in today's show on you tube at youtube dot com slash boom bust our t.v. and on hulu ad hulu dot com. now before we go to break here are a look at summer closing numbers on fellow come on back of. the. economic downturn in the final. days of the deal shanghai and the rest because i meet katie it will be every week. you know margaret mitchell author of gone with the wind one with enough courage you can do without a reputation but in a highly emotional social media driven world it was extremely concerned sometimes hysterical residents of twitter and the like hashtags their outrage from salads of miles away at the slightest deviance from what. they all have to agree is the only acceptable course well big. i got a lot more courage. they want to so this is back to the middle ages a p

also in the earnings front, i.b.m.ales topping analysts' stilts. $24.4 billion revenue in the second quarter, earnings $4.32 a share. h.p. has named meg whit mapp add chairman. board -- whitman as chairman, replacing the chairman who is stepping down because he is battling cancer. p and jamie dimon was given two million stock appreciation rights in 2008, saying they would be available if the board deems it appropriate. back over time-out >> thanks very much, carol massar. joining me to talk about all hese technology headlines, scott and aur own cory johnson, editor of bloomberg west. let's talk about google and the results. >> the analysts got it wrong. they often get earnings per share number wrong. the number to look at is the revenue. growing 14% year over year, so things really picking up from google. also very significant that the head of business operations is leaving the company to go to softbank. that's a big change at google, leaving after reporting a pretty strong quarter of stocks. but 14%, year over year re

and google and i.b.m. are out with earnings. i.b.m. posted a 2% drop in revenue but the declines were smaller for some business units. to our lead story. israel has laumped a ground invasion into the gaza strip, its first significant offensive there since 2009. it's aimed at stopping the miss aisles fired into israel from hamas, which is in control in gaza. israel has also authorized the callup of 18,000 additional troops. israeli prime minister benjamin netanyahu says the israeli forces are charged with, quote, destroying the terror tunnels dug through the gaza industrial nto israeli territory. elliott gotkine, what is the very latest on the ground where you are? >> the latest, as you say, is tanks have gone into the gaza strip. the first major ground offensive since 2009. and the mission, as prime minister netanyahu intimated there in that quote you just cited is to destroy these tunnels that hamas and other militant groups have guidugli -- dug under the ground, stretching kilometers in, order to carry out attacks. what seemed to hav

deal he explains what he thinks is going on and why it's i.b.m.'s bid for relevance then francis coppola is on it to talk about the difficulties of using monetary policy to manage the economy after that steve king talks about how our debt levels are incredibly high and how that makes our ongoing recovery even more fragile than the libertarian guru anthony randolph is on next to talk about the relationship between bubbly assets and the health of state and municipal finances and finally to round out the best of this past week we're bringing you dr steve hanke his views on argentina's economic future in light of its current debt problems enjoy. maybe think about apple's basic business model with regards to their or their devices that are covered by this which is the i phone on your i pad mostly they're simply replacement models when there is a problem so you you send somebody on the field they give you another one or you send in your device to give you another one really isn't any onsite repair so the the concept of on so you support is well limit it

deal he explains what he thinks is going on and why it's i.b.m.'s bid for relevance then francis coppola is on it to talk about the difficulties of using monetary policy to manage the economy after that steve king talks about how our debt levels are incredibly high and how that makes our ongoing recovery even more fragile then the libertarian guru anthony randolph who is on next to talk about the relationship between bubbly assets and the health of state municipal finances and finally to round out the best of this past week we're bringing you dr steve hankies views on argentina's economic future in light of its current debt problems enjoy. area think about apple's basic business model with regards to their or their devices that are covered by this which is the i phone and the i pad mostly there are simply replacement models when there is a problem so you you send somebody on the field to give you another one or you send in your device to give you another one really isn't any onsite repair so the the concept of onsite support is well limit it would

at the end of the day what apple stands to do with i.b.m. is taking bigger chunks of that $677 billion enterprise market opportunity out there for i.t. devices where it is only scratching the surface. tim cook said that on the call and i think he is right. >> gene, both of you guys do a ton of research. that's why we have you on the show. gene, what kind of research are you doing to figure out what the market might ultimately be for the ipad? >> we do different surveys in emerging markets. we look at intent to buy which is a critical metric. it is less about what you bought and about intent to buy. if you collectively look at all of those, the intent to buy iphone is high. tends to be anywhere between 30% in emerging markets and 70% in the u.s. and those numbers keep inching up. despite all of this competitive talk, i think that is critical focus here in trying to get an edge in how the iphone is progressing. some other fun stuff we report on today, every six months we do a head-to-head test between google and siri and see which one is bette

keep your record for i.b.m. he had voted for the woman on the bench. but this is showing how do i do a story on that american. everything by the skin color t.v. . let's go to those who if you could fit it into a few posts they did the kid fits me she is then you. move to one i still find. rightly they already have most. of the american doing out here bad so. first. we came to my call to try to film an excursion and went to the tours department a woman came out and said oh you guys american you know that american. so we decided oh a little funny and her name is valerie so we're on a mission right now to find valerie wasting time i. just think the whole thing is i'm using what's right yes it's typically you well she's here who knows them all i'm a little betsy valerie i mean this you were a kid as he moved here. valerie. she lives here these are park moods. oh. i thought i had an office space will open in people's goals like. that every. day. she's here for medical reasons. you mean. god and when i think people just don't. push this calling chaos in the

going to like the idea of of this particular period speaking of which thank you for bringing that up i.b.m. and apple big deal coming out there now can we talk about that you know who will this deal really change anything for either company in your opinion i think it's you know it's not really that big a deal from my perspective i think you know this was about the bring your own device type of thing that people bring their own devices to companies and that's really a big problem but once you get ahead of that problem by saying look we have a solution to deal with the corporate environment but you know people are going to buy consumers who are actually working call prison. i phones anyway it's not really going to add up much juice to phones and i think that the market saturated any was so i don't think it's that big a do ok now amazon officially launched its first mobile wallet application and over the course of this year we've seen major new products from amazon like fire phone and fire t.v. so edward tell me about this what's going on what does this mobile wallet what will it do why is ag

is a power forget his ations donald kennel tom watson of i.b.m. we included george kennan he famous. diplomatic scholar of washing i believe on the i'm going to i'm going to have had joe be here where you go to a very short break and after that show break we'll continue our discussion containment state. iran like syria has been georgia very harshly on the under the constant. justify the game is not pursuing the. spectrum of personal record like the one you know and same with. developing nuclear weapons and. they want to see. me. in form and form the story. we would be stupid not to take him from. her computer. room. for. her. but. i would like to know that you know the price is the only industry specifically mentioned in the constitution and. that's because a free and open press is critical to our democracy allmers. in fact the single biggest threat facing our nation today is the corporate takeover of our government and our proximity we've been hijacked by handful of friends national corporations that will profit by destroying what our founding fa

coming right up and karl denninger is on the show today carl sat down with me earlier discuss the apple i.b.m. deal among some other stuff and then in today's big deal edward harris and i are discussing the chinese of mobile markets and the future of apple's growth it all starts right now. with. our lead story today the origin time poker face argentina's president cristina fernandez his battle against holdout investors suing her country is increasing the odds that her government will default for a second time in twelve years it's almost a record now and hearing on tuesday u.s. district judge thomas decided not to grant argentina's request for more time to negotiate with holdout creditors and directed at both parties to meet with a court appointed mediator to reach a settlement judge creates a rule that argentina is not allowed to pay its restructured bond holders until it reaches a settlement.

that's it from us this hour coming up though ed's a break on the science with i.b.m. arts and then on the. next stay with us. when people talk about human rights violations you should evolve some pro western protesters getting beaten up and response with mainstream media is usually to bomb somebody somewhere so good thing they haven't picked up a story from detroit that the u.n. is calling a human rights violation residents of the motor city or the former motor city who are hundred fifty dollars or more behind on their water bills are getting their water shut off completely the water and sewage department is five billion dollars in debt and that is a justification to crack down on deadbeats on the surface the seems like an open and shut case of course everyone has the right to water especially detroit which is near huge bodies of fresh water that other cities could only dream of but on the other hand if the poor don't pay for water then us taxpayers will be paying for it for them and that's not fair i think this is not so much a case of a right to water but a right to

was a power forget his ations donald kennel tom watson of i.b.m. we included george kennan he's a famous. diplomatic scholar of washing i believe on the i'm going i'm going to have had just been here where you go to a very short break and after that show break we'll continue one discussion on containment state. police. plenty . of. i think. we're going. to do you know the price is the only industry specifically mentioned in the constitution and. that's because a free and open process is critical to our democracy shred albus. in fact the single biggest threat facing our nation today is the corporate takeover of our government and across several we've been hijacked lying handful of transnational corporations that will profit by destroying what our founding fathers once told us my job market and on this show we reveal the big picture of what's actually going on in the world we go beyond identifying the problem trucks rational debate and a real discussion critical issues facing america have on the books feel ready to join the movement then walk a littl

is a power forget his ations donald kennel tom watson of i.b.m. we included george kennan he's a famous. diplomatic scholar of washing i don't let on that i'm going i'm going to have had just been here where you go to a very short break and after that show frank will continue one discussion contain state. fish farms waters do you have a pond to me because. i saw you spread all over and over the most toxic food you have in the room. that's drowned zones and the tissue inquiry furthermore tells restrictions. really. if you drive people away from the dollar many people now it must be serious saying if we have u.s. dollars and the u.s. decides they don't like us they're going to put sanctions on us so people more and more people would say maybe i should use the u.s. dollar. but if you're going to like these policies i think you know. pleasure to have you with us here on t.v. today i'm sure. welcome back to crossfire where all things are considered i'm peter lavelle we're discussing washington spinning of containment. ok john and i go back to you in ch

is a power forget his ations donald kennel tom watson of i.b.m. we included george kennan he's a famous. diplomatic scholar of washing i believe on the i'm going i'm going to have had joe been here we're going to go to a very short break and after that show break we'll continue one discussion containing state. fish farms waters do you have a pond to me because. i saw you spread all over and over the most toxic food you have and who will. drown zones in the tissue inquiry furthermore tells restrictions . really know what's inside the feeling. if you drive people away from the dollar many people now it must be serious saying gosh if we have u.s. dollars and the u.s. decides they don't like us they're going to put sanctions on us so people get more and more people would say maybe i should use the u.s. dollar. on marriage in the financial world. to see these developments have not stopped the advance only taken the demand to its credit not going to get any economic benefit in life there are absolutely. welcome back to crossfire all things considered i'

is a power forget his ations donald kennel tom watson of i.b.m. we included george kennan he famous. diplomatic scholar of russia i believe on that i'm going to i'm going to have had joe be here when you go to a very short break and after that show frank will continue more discussion on containment state. so we leave the. motions to. your party is it. is that no one is it would be that you deserve answers from. politics. iran like syria has been george very harshly and it believes under the constant sad . isn't it justify the game in if not pursuing them for a weapon down you know raising to spectrum off percent of the new revenue god would lead to one young who'll say move on you see rees is developing nuclear weapons in the home for me and very explicitly did they want to see the user in full dump and being married in full makeup and form used to eat it we would be stupid not to take it. but. to do the job the price is the only industry specifically mention in the constitution and. that's because a free and open process is critical to our democr

and as a result, it's getting very close to surpassing bynum - i.b.m. >> think of all the naysayers that say facebook will never make the transition to mobile. >> it's almost double the market cap by the way of what it was worth when it debuted a little over two years ago. >> and now folks from -- trees don't go to the sky. the valuations are still low. how do valuations turn? >> well, they turn when there's some sort of catalyst. it doesn't just usually deflate. it's usually some broader correction. but these phenomenon, these valuations in the social media world, these are very limited. this is not like 2000. -- the not like the.com t-com -- >> these are the names of the companies that look like there's an option. you're buying an option that they could be generation long winners. and there aren't very many. and where you've got to put your money now is when you think, if you're in the market. if you're in a liquid investor because if you miss that, they take the money away. you don't get to play anymore. >> where are does twitter hit into -- fit into all of this? >> twitter is a candi

numbers all the money they've lost from foreign customers not putting their data in the us cloud cisco i.b.m. eighty and t. have all talked about the losses they've experienced because foreign companies are not buying their products for eyes and lost a big contract in germany so we are seeing a lot of direct financial losses due to the fact that u.s. companies u.s. networks u.s. hardware u.s. software is no longer trusted that the world believes that these are just avenues for n.s.a. spying and this is likely being a big deal and probably in the u.s. congress this is going to be more an impetus to reform the n.s.a. than anything else there's an extreme in there's a train worry that we're going to lose competitiveness that foreign companies are going to come up with competing systems which are going to gain a lot of traction overseas because they're viewed as more trusted now whether that's true or not is another discussion but u.s. companies are now not trusted overseas because of n.s.a. surveillance now we spoke to our leveson of lava bed regarding his brush with the n.s.a. and the shutdown

the older hardware manufacturers i mean also a lot of the stuff is of course comes out of china but i.b.m. has already taken a massive hit. they couldn't sell their service business to china they said sorry we don't want it so it did they were going to sell off that's a thing of the oracle oracle saying same story now so so in other words spoken everybody to avoid a few attacks here and there there's a zero so far yes there oh it's x. they're going to blow a trillion in revenue for these high tech companies and essentially got the american economy. if everybody starts doing what what russia and germany and china are not doing starting to do if the world starts to do dance then you know it's going to be several hundred billion dollars a year so the talk of the germany and horizon deal what are the one of the costs or what are the numbers actually i'm not sure what the exact value of the contract was but i think we're talking about tens to hundreds of millions of dollars or something like that so it's not the german national telecoms infrastructure it's telecom services to the german govern

privatized it all and with central banks are giving him the ability to do so zero percent interest rates i.b.m. going to go private coca-cola is going to go private every dow jones component going to go private they're going to take it all private i think that's the master plan is to remove public ownership or stock market participation from the unwashed masses who have the temerity to go out there and buy a share in some publicly listed company hoping that they too can emulate warren buffett all that's going to be wiped out by the koch brothers and the buffets of the world the private equity scam artists are going to take it all private and that's what these it's going to become you talk about oligarch you know america's a clip talk oligarchies well finally he says here that if this price today is fairly priced as the usa today article says interest rates would need to stay zero until twenty forty that is the only way they're fairly priced ok well go long vomit futures because it's a long way to. fill the grand canyon with with pure unadulterated spirit to stacy got to go. states over the sec

. >> we reached out to google and i.b.m. to see if they sent proposals to the city and both would not comment. >> there's money to be made here, got to go. "real money" is next. >> four simple words have the future of obamacare hanging in the balance. i'll break down two complicated court rulings and what they mean for the millions of americans who signed up for coverage, and also, aljazeera journalists in gaza, and i'll give you my take and plus, boom towns on the bayou, how fracking is creating both opportunity and challenges. i'm ali velshi and this is "real money."

>> we reached out to google and i.b.m. to see if they sent proposals to the city and both would not comment. >> there's money to be made here, got to go. "real money" is next. >> four simple words have the future of obamacare hanging in the balance. i'll break down two complicated court rulings and what they mean for the millions of americans who signed up for coverage, and also, aljazeera journalists in gaza, and i'll give you my take and plus, boom towns on the bayou, how fracking is creating both opportunity and challenges. i'm ali velshi and this is "real money." this is "real money, and you are the most important part of the show. so tell me what's on your mind by tweeting me at ali velshi or facebook.com/ali velshi. these four words, established by the state. the interpretation of those four simple words in the affordable care act has set up a complicated legal battle that threatens the future of obamacare and may send it back to the supreme court. this is all about the subsidies that help low and middle income peopl

. >> we reached out to google and i.b.m. to see if they sent proposals to the city. neither would comment. i did see a couple of people using phone booths in new york city for shade while they made cell phone calls. >> the idea, this sounds like a no-brainer, which means it probably doesn't get done. the idea of having docking stations to charge a phone and wi-fi connections, that's great. >> that's the hope. i think it might get done. new york city has been thinking about this since 2012. we'll see what happens. >> thank you. that is all out of time for this news hour. head to hour website aljazeera.com. "inside story" is next. >> after almost away week, the men who controlled the crash site in eastern ukraine have allowed the investigators in, turned over the bodies and turned over the black boxes. can a compromised crash site still tell you what you need to know? it's the "inside story." >> hello,