broadcom looking to buy qualcomm at $70 a share, that would value qualcomm at $103 billion.york, this is bloomberg. ♪ this is bloomberg markets. i'm julia chatterley. scarlet: i'm scarlet fu. most inrolls rising the one year in october as people resumed work after hurricanes harvey and irma. again missed analyst estimates and wage growth fell. is our bloomberg chief economist. do we say forget this month's data because it was disrupted by the hurricane, or do we read into it? back have to take a step and be dismissive of the headline reading. i see so many saying payrolls missed expectations. i do not think that is the case, because we are looking at a net job creation number. what we are looking at, we have to take into account the revisions of the prior two months. when we do that, we see a very substantial upward revision to both august and september. a total 90,000. if we look at the net creation number as we really learn of it at 8:30 this morning, it was 261 plus 90,000, and that gets you something very close to 350,000. i brought a chart with me, and this basically sh

qualcomm acknowledges receiving the offer. more we're joined by a tech analyst at william blair and analyst at rbc capital markets is on the phone. actually, i want to start with you, amit. so, broadcom's side argues, i had a chance to have a few conversations this morning, that qualcomm hasn't traded at $70 a share since a year ago it's been three years since it was at $80, so this actually represents fair value, but we've seen qualcomm under pressure now from apple on the licensing front. a year ago, and before that from china, though it was able to resolve much of that does that argument hold water in your view? >> yeah. thanks for having me, guys i'll say, you know, factually they are right qualcomm has not traded at $70 in a while, since the apple litigation started, and i do think one of the big levers is, a, i can integrate this asset much more efficiently operationally, they have a good history, but the second thing may just be broadcom and apple have a much more cohesive partnership in contrast to the hostility and la

qualcomm close ed hered higher .on the phone with his reaction is tom sepenzis tom, are you excited about this deal >> well, it certainly makes a lot of sense, and it's in, you know, the historical keeping with, you know, growth through acquisition strategy so i certainly think that it would be great for both companies if they could get it done, but i think there might be problems getting it actually closed >> antitrust problems? >> yeah. i would think that there's going to be a number of issues qualcomm's already run into some issues with the acquisition of nxbi you know, that will only complicate matters with braoadcm trying to buy qualcomm what happens with the nxbiing a b decisi acquisition. does that go through, get dropped? there's a lot of moving parts between the two companies. that will make it difficult. >> yeah. absolutely nxpi has some expertise in automotive, as i understand it so if they were to be jettisoned, does that worry you, as a qualcomm bull here? >> no, actually it wouldn't worry me at all. as

are they going buy qualcomm?cold on qualcomm but he pointed out all the reasons thisskill makes a lot of sense, it indicated to me, i look at this and say if i make qualcomm shareholder, they are out of the blaze they put themselves in the last couple of years. >> battling it out >> i am not certain this deal will make sense for them of the $70 price target they have an uncredible balance sheet. >> romit, what do you think is going on here? >> well, i think they are definitely on track to close we are making it happen. we spoke to broadcom yesterday after they made the announcement and yes, lets emulate and continue to be an important part of our strategy and that extends beyond and this journal article is right we now know another reason why >> well, they have to buy brokade. >> their block is different. if they found we find it sooner, they got to pay $195 million break up fee to brokade. >> there is one more aspect and component of this. there is a qualcomm that's sort of out there as well >> it is not a signi

these guys don't want it but willing to let them pay 110 but no more. >> qualcomm needs it. >> qualcomm needs it and by the way it would be more highly valued with it and yet the price won't change if they get it at 110, which is kind of odd. >> i know. >> what do you think qualcomm is worth? >> 85, 90. >> okay. this company has got unbelievable intellectual property it deserves-- i'm looking at $70 as the base price over the couple of years. yes they killed themselves and moved it down. but they are incredibly valuable if you can solve these lawsuits, they would be everywhere it is such an important deal will hack tan pay 85 -- maybe they don't need it did you see how little stock jacobs owned >> how little he owns, yes >> earn mollenkof doesn't own a lot but they are big talkers. >> at the same time, if antitrust is an issue, hell or high water we'll go to the mat, there's a lot to come here it's been a long time though >> ever going to happen? >> really? you're going with greg hayes earlier you went with bernie evers. >> there's come hell or high water and hayes never going to happen

you can see house since this dispute started, the divergence in apple shares and qualcomm shares, qualcomms just thinking. this has not been good news for qualcomm. ian: they have been massacred this year. it is the worst performing chip. the philadelphia semiconductor index benchmark index, and that is a year when chip stocks have been hot, done really well. everybody apart from qualcomm has had money pouring in. clearly people are concerned. if that goes way, they are in trouble. emily: if apple does give it to these other companies, is there quality change? ian: this is why analysts have been cynical about this latest development. would you really want to dump qualcomm's modems? they are best in town when it comes to getting the high-speed data. why would apple want to take that away from itself? why wouldn't want the risk that someone says our phones are faster? emily: worst-case scenario for qualcomm, what is their back up plan? ian: to put more money to the research and development efforts. in china, that has been relatively successful. both samsung and apple have lost market share t

qualcomm of its revenue from licensing its chip technology -- qualcomm makes a lot of its revenue fromchnology. qualcomm is down on the year, which is also somewhat unusual for the chip universe. if you look at the philadelphia semiconductor index -- let's look at my terminal if you're able to full of my bloomberg terminal. philadelphia semiconductor index is up 41% this year. look at the bottom stock. qualcomm. ands down 9.5% this year the worst performer in this particular index. this gives you some perspective on why broadcom might be looking get qualcomm right now. it is on a relative basis to the rest of the sector a depressed asset, or a less valuable asset right now than it was in the beginning of the year. shery: this is in the early stages according to people familiar with the matter. what would happen to the nx p deal? could qualcomm finish set out and they get acquired? julie: in theory but it would have to be a bigger acquisition. it's unclear what would happen at that time. morseluld be a bigger for broadcom to swallow. nxp is trading lower. that indicates that is some dou

but why qualcomm?tock has been under some pressure, which reflects the legal problems it faces. >> the deal makes a lot of sense. we have written before that is likely on the wish list of the ceo. broadcom would be getting $30 billion in revenue. and it would be very strategic. both companies have a significant presence in smartphones. there is a major trend in smartphones to add more bandwidth. broadcom and qualcomm are both leaders in different technologies, which are both critical to adding more bandwidth. ke, you look at this announcement from president broadcom bringing their headquarters to the united states. that makes doing a deal like this easier. broadcom is still in the middle of trying to get a deal done and trying to buy brocade communications for $5.9 million. we thought this could have something to do with getting approval for the brocade deal. this is a company that is extremely acquisitive, and chipmaking is very acquisitive. aty were looking opportunities in the united states and the

broadcom wants to buy qualcomm for about $105 billion. if completed it wod be the largest technology takeover ever, creating the third largest chip maker behind intel and samsung. the sheer size of the deal has the possibility of changing the industry. so far it's only said it's asocietiesing the proposal. shares of both companies rose today extending friday's run-up, but the tie-up could get complicated for another reason. that is apple. josh lipton explains. >> qualcomm has a few very important customers, including suppliers to apple that generate a significant amount of revenues, but they're locked in a nasty legal fight. the dispute is abouth apple should are to pay qualcomm for the pat presidented technology which allows phones to connect to wireless networks. qualcomm wants a percentage of the iphone selling price. apple wants to play closer to a flat feel. what would it mean? a combined company would be a technology powerhouse, that means that much more pricing power, perhaps squeezing customer like apple for more money. some say t

does qualcomm like the price? with regulators area broadcom is trying to buy nsp. that has been a regulatory thing for about a year. they have to merge for companies into one company. how much difficulty does that create? it's a fascinating deal with a lot to talk about as it unfolds. the tweet of the morning was this. donald trump tweeting in asia, unemployment is down to four .1%. the highest stock market ever. thes taking credit for rally in stocks. is that accurate? there is a fascinating note out today. he basically went through the year and looked at the main events. he wound up seeing what the percentage was of how much it added to the s&p. of ignored. it's interesting. he found that earnings contributed about 50 points to the s&p rally. added 100 points. risk subtracted 90 points. the fed 50 points to the rally and washington d c was actually a detractor, taking away a couple of points. global issues in general added 40 points to the rally. it's a little bit in the weeds. the broad perspective if you scan

broadcom's bid to buy qualcomm.make the company the largest chip maker in the world and potentially put broadcom in every device on earth. to discuss this and other top headlines this week, i sat down with brad stone. >> this is an earthquake and -- in chip land. you have the third-largest chipmaker in the world, not just broadcom and qualcomm, but nxp that qualcomm is trying to buy, that controls pretty much the entire chipset in the smartphone. our colleague said if you take all the components of these two companies out of the iphone, you are left with an expensive ipod. that tells you what they do. emily: broadcom has gotten to this position with aggressive m&a. what could stop this from happening? >> qualcomm does not want this to happen. in the of your normal provisions of resistance. but also regulation, regulatory review. qualcomm, they are spending a lot of time with donald trump. they are lobbying here. qualcomm's nxp deal is stuck in regulatory review. clearly, they are taking a closer look at these kind o

undervalues qualcomm.t are the next steps? , ed hammond and ian. i want to speak to you, ian. what did he have to say echo just say? >> i have thought about this. i'm aware there might be issues and there might be pushed back. i have talked to their customers and investors. i can see a path to getting this done. emily: what are the details of the bid and what happens now? ed: what happens here is we knew that broadcom was going to get pushback. the fact that qualcomm rejected -- and it seems on price rather than scorched earth. that was seen as positive by the market. you have seen that and qualcomm shares. -- in qualcomm shares it what happens next is going to be in broadcom's court. i think we see a continuation of that strategy. they are now going to launch a slate. they have to do that sometime by december. how much money can they put on the table for this? they are going to go above this initial $70 a share. some talk about whether they can go into the mid-80's per share but a lot of it depends on the

if qualcomm's board doesn't play ball.f the deal goes through, it would make broadcom the world's third-largest chipmaker behind only intel in samsung. sullivan, letks me start with you. >> it is a little crazy to think about. we've seen a time of really big &a dealsa deals -- big m in the past few weeks. i think what is going to be interesting here is that broadcom is contemplating taking this hostile. we haven't really seen a big -- m&a situation -- emily: we just had this same conversation on bloomberg radio. let me ask you. help us understand what is different about the chips that qualcomm makes and the products that broadcom makes. >> the overlap is in the phone. if you connect to a cellular network, you are using a qualcomm chip. if you connect to your home internet using wi-fi, you are probably using a broadcom chip. obviously, some similarities but not quite the exact same thing. broadcom is very big in what is called switches, little chips that send information around data centers between computers. itly: it sound

they are probably now going to slate for the qualcomm board.n it remains a question of how much money can they really put on the table. almost certainly they will go above the initial salvo of $70 a share. some talks are going in the mid-80's but a lot of that depends on the feedback they get now and when they get nexget ne. now?: what happens ian: that is a very good point. the assumption by the market is this is just about a prize. n atou look lower dow that statement, there is a fundamental difference in how you run a chip company. say the good times are over and no more growth to be had. we need to back down the hatches. qualcomm still believes it can grow and move into new say the e over and no not. areas and that is absolutelyemily: he hasf what he wants. could this be the one thing he cannot make happen? ed: it is the biggest thing he has tried. a deal machine and built this company up through acquisitions, most notably the deal with broadcom. a differentstile, order of magnitude from anything he has tried. even if he does get the shareh

the broadcom-qualcomm story is a more interesting one.ng for a lot of reasons. the fact there is wi-fi connectivity and the dominance of a single supplier, that is bad news. emily: we saw the ceo of broadcom doing a photo op with the president. bob: my concern is the fact that broadcom is seen as a cost-cutting company. qualcomm makes an effort to do interesting innovative technology, and there is concerns that it broadcom were to come along, it would have a negative impact on qualcomm, let alone the whole apple discussion and things like that. there is a concern that the broadcom thing could squelch that. emily: qualcomm is in a tough spot right now. bob: it is a very interesting political battle. in scale because they have put themselves in this position where they're largest customer is arguing with him. they have this other deal they want to pull in to get into the automotive side and other areas, so people see a weakness and pounce. it is classic aggressive tactics here. i think in the long run there is still a lot of value in qualco

us chipmaker qualcomm is suing.st quarterly result in two years and has new iphone models coming out. we saw pictures of camping out for the new iphone x which might help it become $1 trillion company. quarterly sales rose in china because it lifts the fortunes of all of apple's suppliers. that is why this legal spat with qualcomm is not good for business. this legal dispute, qualcomm accused apple allowing access to its rival intel. qualcomm is using its market dominance to bully its competitors and overcharge its customers so we are seeing reports coming out that apple may look to drop qualcomm to some of its suppliers —— or some of its devices so qualcomm might not provide chips for the iphone or right hand. we know this isn't the only legal tussle that apple is involved is. the other one is over technology licensing. but apple has been fighting samsung for many yea rs. been fighting samsung for many years. apple1 been fighting samsung for many years. apple 1 $1 billion in damages from samsung but samsung's lawye

broadcom and qualcomm brace for a battle. $105 billion offer hangs in the balance. -- the biggest deal in the history of tech is turning hostile. the telecom match made in heaven is no more. what went wrong for america's fourth-largest wireless character. the massive document leak. it shows how apple sidestepped billions in taxes. multiple documents in the so-called paradise papers. we will look at apple's involvement in offshore financing. first, more details about the bid by broadcom to buy qualcomm. broadcom has made a $105 billion offer. the qualcomm closing price before bloomberg broke this deal -- now, broadcom is saying it is ready for a hostile takeover if qualcomm's board doesn't play ball. if the deal goes through, it would make broadcom the world's third-largest chipmaker behind only intel in samsung. columnist brooks sullivan, let me start with you. >> it is a little crazy to think about. we've seen a time of really big m&a deals in the past few weeks. i think what is going to be interesting here is that broadcom

broadcom and qualcomm are two of the world's biggest chip makers.m are two of the world's biggest chip makers. on the one hand broadcom provides tips for android phones and the other qualcomm components are found in most new iphones. now the oualcomm has been the dominant player in the chipmaking business. but in the last decade it has actually fallen on some hard times, falling share price, legal battles with its biggest client apple and an anti—trust investigation in europe. and while oualcomm was dealing with those issues, broadcom has been steadily growing and is now a dominant player in the chip business. so the question is will the deal go through? true that qualcomm's issues make the company right for the picking but many a nalysts right for the picking but many analysts believe this particular offer by broadcom will ultimately be rejected because it undervalues qualcomm. now let's brief you some other business stories. and, now, what's trending in the business news this morning. business insider has a story about one of the most exclusive ap

they are probably going to launch a slate for the qualcomm board.nk they have to do that sometime by december. then it remains a question of how much money can they really put on the table? almost certainly they will go above the initial salvo of $70 a share. some talk around whether they could go in the mid-80's, maybe even $90 a share, but a lot of that depends on the feedback they are going to get now and when they next make a move from qualcomm shareholders. emily: if you want to keep negotiations friendly what , happens now? >> that is a very good point. the assumption by the market is this is just about price. if you look lower down at that statement, there is a fundamental difference in how you run a chip company. they say the good times are over and no more growth to be had. we need to batten down the hatches. qualcomm still believes it can grow and move into new areas and that is absolutely not what he does. emily: he has gotten a lot of what he wants lately. could this be the one thing he cannot make happen? ed: it is the biggest thing he

they come together, qualcomm goes away, apple gets the deal it wants, qualcomm shareholders andrid ofhe huge overhang potentially bring in chip orders as well. it is a complicated situation. brad: if you are intel, samsung, or other rivals, how do you see this potential deal between broadcom and qualcomm? brooke: obviously it is a massive deal, the biggest chipmaker combination ever. so i think that does sort of change the playing field, but i think you have to look at this as, are we facing a peak craziness in semi connector deals? there have been so many deals across the sector. when you think about the fact that qualcomm is still trying to close a $40 billion takeover at nxp, and broadcom is trying to close its deal, i mean, these are deals piling out of each other. this is going to be extremely difficult to integrate all of this. that may open up opportunities for intel and other people to take market share away while you have these two companies tied up on integrating multiple deals. brad: ok, brooks of the limb, ian king, thank you for joining us. sut,g -- brooke ian king, thank

if you believe qualcomm management, it might get a bit of time. back to this lucrative licensing model. get that extra $2 billion of revenue a year. it is worth much more than this, especially if you believe the detractors, they are worth what qualcomm would want to pay. emily: now to a bloomberg scoop. apple is planning to take another step into turning its smartphone into an augmented reality device. according to people familiar with the matter, apple is working on a 3-d small rear facing system for the iphone by 2019. i spoke to the man behind this group, alex webb, and our editor at large cory johnson. >> at the moment, what you have at the back of the phone, is two cameras on the iphone x. it is not terribly accurate. what apple is looking at doing is the 2019 iphone, adding the depth perception on the back , which allows them to do a lot more complicated, augmented reality things with the rear facing camera. emily: what this impact any of the current technology, the face id, or is this different? alex it is something separate. : if you are a

ip package.ty does it need qualcomm more than qualcomm needs anybody?package. >> they have a whole host of problems. they have escalated litigation broadcom maywhere be able to have a better relation with apple and deescalate the situation. they will have a better way to business and have it be more efficient. the combination makes sense, but it creates the li na. enoughit creates a boat bohemouth.a wired networking space. vonnie: will he get it done? will he get regulatory approval? broadcom. a different different management and different than the history how broadcom grew up and established a market. what we have diniz ar's abbey, showing -- what we have seen as they are savvy. with a notion towards making this americanized, if not an american company, so they can get deals. the politics of the trump administration, they want consolidation. see the needs of the consumer first. they see the needs of business first. >> moving back to the united states eases the concerns broadcom has with the deal. it is a minor glitch, but re-announcing the move and mov

if the deal is off, where should qualcomm be trading? bitcoin taking investors on a wild ride over the weekend, but if history is any indication, it might have been ypod best chance to buy the crt e currency we'll explain why. is committed to help protect what you've earned and ensure it lasts. introducing shield annuities, a line of products that allow you to take advantage of growth opportunities. while maintaining a level of protection in down markets. so you can head into retirement with confidence. talk with your advisor about shield annuities from brighthouse financial established by metlife. you myour joints...thing for your heart... or your digestion... so why wouldn't you take something for the most important part of you... your brain. with an ingredient originally found in jellyfish, prevagen is now the number one selling brain health supplement in drug stores nationwide. prevagen. the name to remember. >>> job lippen is in san francisco with more. >> melissa, qualcomm arguing this offer undervalues the company at $70 a share q

paul jacobs, qualcomm's executive chairman, says the offer significantly undervalues his company.nalysts who covered broadcomm said they thought qualcomm's board would up the offer if the deal goes through, it would create a tech powerhouse, the third largest semiconductor compa company behind intel and samsung. qualcomm's director nominees didn't respond to request for comments >> thank you very much, josh lipton in san francisco. qualcomm's stock doesn't necessarily trade like the bid is going to be raised significantly at all it doesn't even trade up to the previous offer >> qualcomm has a litany of licensing issues and they have legal issues, i think that's what's holding the stock back. >> remember what happened to pfizer, it blew up books across the street i think people are being very cautious >> there's no regulatory issues. here's the risk to this whole idea of bringing jobs back, broadcomm coming back here they buy qualcomm, they're cutting jobs, not adding jobs. that's the the catch 22 that this m&a has in this environment. >> months ago, qualcomm would have jumped at i

coming up, qualcomm rejects broadcom's history making $105 billion offer. what is next for the potential mega-chip deal. and how apple plans to wrap up its ar efforts. this is bloomberg. ♪ ♪ emily: this week, qualcomm rejected broadcom's $25 billion -- $105 billion offer kicking , off what would be the largest takeover battle in history. what is next? i posed a question to bloomberg tech reporters, and bloomberg deals reporter. >> what is really interesting is we know that broadcom was going to get pushback and they knew that as well. the fact that qualcomm rejected, and on the price, saying no way this deal would ever get done. that was seen as relatively positive by the market. you saw that reflected in qualcomm's shares, which has initially went down and went up when the bell opened. what happens next will be really broadcom's call. they have shown a willingness to go directly to the shareholders and go hostile. i think was a continuation of that strategy. they are probably going to launch a slate for the qualcomm board. they have to do that by december.

qualcomm shares look like they're trading at $63.95. qualcomm shares, if you go back to december, they were trading at near $70 plsh they have not wanted this offer just yet we'll see what happens to the over and to the potential bid on that price >>> also, michael kors is a stock on the move this morning the luxury goods company earning $1.33 a share for the latest quarter. that is well above estimates of 83 cents same-store sales fell by 1.7%, but that was better than the 4.7% drop that analysts had anticipated. kors also raising its full year earnings forecast. the stock is up by 1.8%. also out with earnings this hour cvs health quarterly profit came in at $1.50 a share. that was two cents better than the street had expected. revenue also beating forecasts stock up by about 15 cents >>> wilbur ross is striking back after the paradise paper allegations over the weekend said that he tried to conceal an investment in a company with ties to russia cnbc's jeff cutmore joins us now from london where he caught up with secretary ross earlier

the ceo of qualcomm has been laying the foundation to get through that.alks tough to president trump about moving headquarters to singapore. cheryl: there is also the issue of antitrust concerns, right? which is that the author has increased a potential tie up. they would control 40% of the chip business that power our smartphones and electronic gadgets. regulators saying that's fine? >> it's a major, major hurdle and roadblock for them. you know, these deals can take a long time. if this deal goes through will be the largest tech merger in history. the title would be going to take over xp and as you know it's been many months in the making and still has not closed. cheryl: a nice relationship as far as we can tell if apple. qualcomm does not. but a potential tie up make things better? that's important. you want a nice relationship with apple, don't you? >> jack visio broad, smooth over a lot of the situation that qualcomm is involved in with apple right now over the licensing disputes. ultimately that would be good for qualcomm and its intellectual-prope

qualcomm says it will assess the offer.e last couple of minutes, says it is ready if qualcomm rejects the deal. european investment banks are hiring the way traders and sales people from u.s. rivals. barclays and deutsche bank are ises as much as 30% and offering bonuses in some cases. they are trying to regain market share after years of cutting costs. that is your latest bloomberg business flash. vonnie: we are joined by the bloomberg reporter behind the story. thanks for joining. how can european banks afford to do this when it has not been the easiest ride for them? >> how can they afford not to? they found cutting business sheets and firing traders has resulted in losing market share across equities and fixed income. now that they sold businesses and got their mojo back a little bit in terms of being more capitalized, they are on the offensive. in order to pick up people, he will not go to a place less secure than an american bank without a raise. vonnie: if you are a thank worker -- bank worker, you know conversation

jonathan: if they don't like qualcomm plus nxp, they really won't like qualcomm plus nxp plus broadcomeal has legs. david: it feels like it. jonathan: this is bloomberg. ♪ ♪ jonathan: from new york city, the opening bell moments away. -76 on the doubt. a straight weeks of gains, and then we snapped that last week with a small week of losses, and a little weakness that carries through to this week as well. softness across the board. in the bond markets, yields coming down to basis points. the dollar firms up. a lot of that is driven by sterling weakness today. that gives you a feel for the cross as a storm. let's go to the opening bell. abigail: the bears are back out on this monday morning. nasdaq, s&p 500, and follows that bearish action you saw last week. the first down action in nine weeks. we are seeing the sellers step in. the big question is whether we are seeing a repricing in risk off, the coin has sold that is on the far side of the risk continuum, sometimes a sign that stocks are going to sell off. the dow transports down about 6% from its high. we could see a little bit of a

they are probably now going to slate for the qualcomm board.n it remains a question of how much money can they really put on the table. almost certainly they will go above the initial salvo of $70 a share. some talks are going in the mid-80's but a lot of that depends on the feedback they get now and when they get next move. emily: what happens now? ian: that is a very good point. the assumption by the market is this is just about a prize. if you look lower down at that statement, there is a fundamental difference in how you run a chip company. they say the good times are over and no more growth to be had. we need to back down the hatches. qualcomm still believes it can grow and move into new areas and that is absolutely not. emily: he has gotten a lot of what he wants. could this be the one thing he cannot make happen? ed: it is the biggest thing he has tried. this guy is a deal machine and built this company up through acquisitions, most notably the deal with broadcom. this is a hostile, a different order of magnitude from anything he has tri

anon, first of all what do you , make of qualcomm's response?it is logical to try to extract more dollars out of the deal but if you step back and look at the big picture, we think the combination makes sense. this places adjacent parts of the cell phone together and the ceo of broadcom might be able to settle disputes with apple which has been the primary thorn in qualcomm's side. that adds a tremendous amount of value to qualcomm and broadcom, if it were to be acquired. and also to broadcom, if it were to be acquired. emily: what about the price on offer? anand: as so far as is it possible that the ceo offers five dollars more or $10 more to get the deal done, yes. from a deal debt perspective, he is actually pretty well leveraged to try to make this deal happen. at the end of the day, the $80 a share that people are angling for is also a psychological high price. over the last five years. the ceo has historically not cowed to those higher price demands, usually. it might be a little bit of a transaction here, as to whether the deal gets done

it will be something that we will see investors in qualcomm decide. other factor is you have qualcomm out there with their deal for nxt. shery: thank you. ge's new bossup, is having a difficult time winning over shareholders. what the manufacturing icon can do to change course. this is bloomberg. ♪ julie: live from bloomberg world headquarters in new york, i'm julie hyman. shery: i'm shery ahn. this is "bloomberg markets." are seeing stocks fluctuating a little bit, marginally higher for the dow jones, which is lost ground the past two days. the s&p 500 slightly higher. utilities, consumer staples leading the gains. energy and industrial leading the losses. the nasdaq also gaining. still around the lowest level since november. this week, we have u.s. growth numbers, inflation, a lot for investors to keep in mind. julie: not to mention taxes. now let's get to the first word news. review by the united nations agency monitoring iran's compliance with a treaty that restricts its nuclear activities has not identified any violations. last month, president t

make an offer for qualcomm up to $70 a share.would be comprised of 75% in cash it will combine two of the largest makers of wireless communications chips creating a $200 billion company that's the biggest technology acquisition ever broadcom says it plans to move its headquarters from singapore to the u.s. encouraged by republican tax efforts qualcomm is trying to close the pending $38 billion acquisition of semiconductors. something that would have to be approved they're both major chip suppliers to phone makers such as apple, lg and this would give them a much more lucrative line of business and help them compete with the other major supplier in the market, intel. qualcomm up 2.7%, broadcom down .3 of a percent, guys >> raises some questions about the return of the hostile deal landon, thank you. also antitrust concerns whether this would fly by the regulators qualcomm itself has been locked in a long-running battle with apple and that's helped broadcom especially last week. >> it's not something apple would like to see happen

broadcomm is reportedly planning an unsolicited takeover of rival chip maker qualcomm. the deal if completed could top $100 billion. broadcomm's has a history of aggressively acquiring companies to bolster growth. the report sent shares of qualcomm higher by more than 12%. it's been suffering this year. broadcomm advanced more than 5%. dominic chu has more on this potentially massive acquisition. >> reporter: it has the potential of being one of the biggest merger deals ever in global technology. according to sources familiar with the matter, broadcomm is looking to buy qualcomm. both companies are in the business of computer chips, circuits, wireless technol th sort of thing. the deal could value qualcomm at $400 billion, making it the same size as broadcomm. first of all, it would combine two of the world's biggest semi conductor companies, which would likely trigger antitrust concerns by regulators. second, both companies are in the middle of making other big acquisitions of their own. what would happen to those potential deals? and there's a political angle as well.

qualcomm is old school. and believes in its technology, and that is -- it still believes it can grow and believes in its technology, and that is different. joe: is that really why they are rejecting it? well, you have got to separate what the shareholders broadcom believe what said today is basically they like what they are offering -- want,hat the management and some are on the board, and it comes down to what the board decides is a likely path. we are going to come back. don't worry. we will get a deal done. we will be fine. it is really the case of whether the board will believe that. that qualcomm wants to be bought by broadcom, the right now they are saying they do not, and there is a very strong relationship with apple. price, do raise the there could be a reason to sell at the right price? ian: there is all manner of positioning going on. broadcom says they have a great relationship with apple, which is a way for them to say, hey, we will make all of these problems go away, but how much does qualcomm

qualcomm has been held back by apple. however i'd argue if apple prevails in court against call come which is a responsibility, the shareholders already modern lane to tender to anything in qualcomm let's step away thou, think more about the returns behind it because it has to do with a much bigger thing put simply, many other industries we have too many semiconductor companies and they're dpeeting for more business same goes for disney fox, too many companies fighting for the same consumer. many doubters just don't get it. the people telling you that this market's done for are only considering the earnings assessment they're never looking at take over values because they haven't been able to gauge the worth of one company to another or one entertainment company to another. tech has become more than cell phones and personal computers. both of those potential deals show you to worth of these chip makers beyond what we're willing to pay for the earnings per share and the worthy worth of entertainment. maybe disney has franc

over how much qualcomm should get in royalties. have to look to qct, its chip business, which isn't really affected. eps is the wild card here since the licensing business is hikghy profitable >> john, thank you we'll see you at the top of the hour as well >>> in the meantime, as we head toward the close, the dow is up he oints. weavthe closing countdown in just a moment. stay tuned she's nationally recognized for her compassion and care. he spent decades fighting to give families a second chance. but to help others, they first had to protect themselves. i have afib. even for a nurse, it's complicated... and it puts me at higher risk of stroke. that would be devastating. i had to learn all i could to help protect myself. once i got the facts, my doctor and i chose xarelto®. xarelto®... to help keep me protected. once-daily xarelto®, a latest-generation blood thinner... ...significantly lowers the risk of stroke in people with afib not caused by a heart valve problem. it has similar effectiveness to warfarin. xarelto® works differen

you know that qualcomm is purchasing xp.how that goes, they are still interested, so there are other acquisitions down the road been need to be handled as well. julie: thank you so much, taylor riggs. , a look at the biggest business stories in the news right now. shares of mattel sarin today. hasbro has discussed by the company. that is a deal that would unite the two biggest toy makers in the u.s.. uber is setting the stage one of the biggest private startup deals ever. the right healing service has approved stocks banks offer to buy a multibillion dollar stake. softbank and other firms will be allowed to invest up to $1 billion in a uber. and then they will be able to buy up to $9 billion of shares from existing investors. catching a big victory, the emirates have agreed to buy four boeing 787's. airlines generally get big discounts on huge orders. the deal is a blow to boeing's rival airbus that was counting on a good quarter. that is today's bloomberg business flash. and oil company is launching an ipo of its retail fue

qualcomm up 2.7% but beaten down. qualcomm is suing apple now for breach of software license, we said that apple wanted to drop qualcomm chips in the new year is that qualcomm wasn't giving some of the software that they wanted to see and qualcomm is basically saying they're using, that apple is using big behemoth status to get access to software they don't necessarily deserve. that's the back and forth between the two companies. apple up a buck 45, we're waiting for the numbers after the bell. revenue likely to be up 8%. those are the estimates, but the guidance that everybody wants to know about because the 8 was only available for 9 days, that will factor into the report. what will really factor in is the holiday season, the fiscal first quarter. that will include the apple 8 for real and iphone x on sale real deal tomorrow. so watch for that going into the christmas season. so we're waiting for the numbers, could be a meet, beat or a miss. liz: we're watching it, apple after the bell. nicole, thank you, guess what

behind the scenes, qualcomm didn't like this, $70 a share is a lowball offer.t help but spend at least one year looking at a deal of this nature. obviously, broadcom knew what to theyt from our reporting, are prepared to take this to the next level. scarlet: global offers are very interesting, since qualcomm try to buy an xp, and an xp saying that was a lowball offer, as well. julia: what broadcom has said is deal,rrespective up that this offer is still on the table. how does that work? how do they defend themselves if they are going to take it to the next level? >> if you are thinking at it from the bar, state of things, what they will be willing to pay shows how much they are willing for this company. a company with xp as much greater value. it has more value than it does with nxp then without. it shows you they have the capacity to change the qualcomm business model to make the deal worth doing. julia: where does apple fit in that? if they lose the deal with apple, you have a stream that gets chopped. >> the reason qualcomm's stock price is depressed, the re

carol: in litigations, we talk about qualcomm. you included qualcomm on this list.r break your potentially. -- year for them potentially. >> what is unclear is how long this will play out because the litigation is several lawsuits filed by apple against qualcomm. this gets to the chips that qualcomm makes in iphones. counter suit by qualcomm talking infringement, trying to block the sales of iphones in china. it has been a drag on qualcomm. that might extend into 2018 and could be problematic which is why qualcomm is on the list. we certainly see companies with litigation, and that is always a challenge. we tend to see a lot more of those companies in the technology space. whether it is patent issues, licensing issues, a whole range of issues with those kinds of companies. chip companies, handset companies, the blackberry suit that we write about. carol: you did cover everything. entertainment media, companies, companies, you also have pharmaceuticals. >> we do. we have interesting ones like therapeutics, which does not have a product on the market, but is close to

qualcomm could be open to a broadcom deal, but at a higher price.lcomm's board rejected the $105 billion acquisition offer. bob o'donnell joins us again. >> you step back and look at the big picture. we think the combination makes sense. it places adjacent parts of the cell phone together and the ceo of broadcom might be able to settle disputes with apple, which has been the primary thorn in qualcomm's side. if they are able to put that together, it adds a tremendous amount of value to qualcomm and hence to broadcom, if it were to be acquired. emily: what about the price on offer? anand: in so far is it possible that the ceo offers five dollars or $10 more to get the deal done? yes. from our deal debt perspective, he is pretty well leveraged to try to make the deal happen. at the end of the day, $80 a share people are angling for is also a psychologically high price of the last five years, and hawk has historically not cowed to those higher-price demands usually and it might be a barter whether the transaction as to whether yo the deal gets done at

, broadcom up 1.9% qualcomm jumping 4.2% qualcomm under a lot of pressure lately with everything applethat it stands on outcome going for it regardless of qualcomm other deal pending that is a 39 billion dollars post acquisition mxpsemi conductor higher this morning qualcomm paid out regulatory fines china south korea taiwan big news possible 130-billion-dollar deal, cvs came out, you can see this is a win this morning, cvs is up slightly about one-third of one percent profit higher claims also seen growth in health care operations, so that has been a real upside possibly for that one profit forecast then we look at michael kors big farther here raised revenue forecast going forward benefiting, from jimmy choo stock up 5.6% about a 10.8% gain this year going to tack on some up arrows as revenue beat profit i rises revenue forecast forward that out paces what 234589s thoug analysts thought on that good news. >> switch gears donna brazile former head of the democratic national committee she is dropping more bombshells about the democratic national committee how colloquialisms linked to h

jonathan and paul chryst fer >>> when we come back, qualcomm takeover by broadcom might be a bit of ae changer for apple. we'll discuss what's at stake. plus, watching shares of priceline plunging after the company posted weak guidance stocks down now better than 11%. "squawk alley" is back after this >>> i'm aditi roy in san francisco with this market flash for you. blue apron shares are hovering at record lows at $3.23 a share, down from their ipo price of $10 a share back when they went public in june, after comments from the company's ceo at an rbc conference earlier today in the comments he said, "today a new fulfillment center is performing as our worst margin operating center because it's very new." he went on to add that the company has had unexpected costs related to this center in getting it up and running and they are still training hundreds of new employees this is not new news, they mentioned this during the earnings call last week, but again, shares are down 17% right now. back to you, john. >> thank you, aditi. quite a drop there >>> meanwhile, what would be the biggest

you mentioned qualcomm.could set the stage for a bitter fight in the world of mobile technology. singapore—based broadcom made the offer at the chief of qualcomm says it undervalues the company. shares in barbie toymaker mattel had jumped over rumours of a takeover by hasbro. last month, shares in both dell after the bankruptcy of toys r us. and but coyne has bounced back after losing more than a third of its value in three days. —— ? ?macr01 oi’ its value in three days. —— ? ?macr01 or two. a planned soft —— bitcoin. a planned software upgrade provided issues. australia‘s business confidence surged to its highest record 0ctober, confidence surged to its highest record october, with strength of sales and profits seen across a range of industries. the national australia bank survey showed its index of business quadrupled in the long—run average however this is in stark contrast to the mood of consumers who are greatly concerned about rising utility costs. in the world of professional sport, elite athletes and