emily: the blocking of the broadcom and qualcomm deal is something qualcomm wanted. isaac, has president trump hurt an american company, qualcomm, as a result of this america first a strategy? >> it certainly would not be the first time. i think there is a lot of frustration among american companies about how trade tensions are going and tariffs on chinese goods making it harder to deliver products to american consumers. american companies don't have the same of session with the trade imbalance that trump does. trump, navarro, other people at the top of the administration feel strongly about rectifying a trade imbalance, but most of the serious economists out there and businesspeople out there do not feel that is a problem in terms of doing business with china. there are more interested in intellectual property issues in market access issues. they don't care about the trade imbalance. emily: qualcomm, romaine, has other problems. the stock is on his way to its third year of annual declines and also in a big standoff with apple around the world. romaine: that is getti

emily: the blocking of the broadcom and qualcomm deal is something qualcomm wanted., has president trump hurt an american company, qualcomm, as a result of this america first strategy? >> it certainly would not be the first time. i think there is a lot of frustration among american companies about the way trade tensions are going and tariffs on chinese goods making it harder to deliver products to consumers. american companies don't have the same obsession with the trade imbalance that's trump -- that trump does. trump, navarro, other people at the top of the administration feel strongly about rectifying a trade imbalance, but most of the serious economists out there and businesspeople out there do not feel that is a problem in terms of doing business with china. there are more interested in intellectual property issues and market access issues. they don't care about the trade imbalance. emily: qualcomm, romaine, has some other big problems. the stock is on its way to its third year of annual declines and also in a big standoff with apple in various disputes around t

qualcomm spent nearly two years trying to buy nxp.week they finally gave up after the latest missed deadline for the deal ace approval. thank china, causing the stock to just get slammed. less than two months ago nxp was trading at 120 now it's at 95 ouch but you know what? at these levels i think the semiconductor company is pretty attractive i'm going to go against what everybody is saying here, and i'm going to say that it's attractive even without a takeover why is that? let me explain years ago nxp was one of the sexiest growth stocks in the whole semiconductor industry 2018 they acquired free scale that transformed into it the fourth largest chip maker on earth with a ton of exposure to the automobile market and the iop, the internet of things. back then i figured nxp would make a terrific stand-alone company. that's why we ordered it for my charitable trust which you can follow at actionalerts.com by joining the club but then qualcomm stepped in with a bountiful takeover. then last year the activists at elliott management, real

are we getting qualcomm numbers?et: we have headlines out of qualcomm that it is terminating the plan to buy an xpi semiconductors. china needed to approve that deal and the approval has not been forthcoming. qualcomm is pulling the plug saying they are terminating the agreement to buy them. qualcomm will also buy back shares, $30 billion worth of equity as part of this same announcement. qualcomm shares will move on that. it had turnaround in trading today. joe: investors are very happy to see that deal fall apart. julie: the company also is going to have to pay a $2 billion fee for canceling this acquisition. also, it's revenue beat estimates. third-quarter adjusted revenue. nine -- $5.19 billion is what it was. scarlet: we also see qualcomm fall in after hours trading as well. julie: it could go down more. there was a bloomberg survey of analysts who cover qualcomm and they say the deal was canceled and it could fall to as low as $92 a share. scarlet: this is an xpi, right? julie: correct. we have had ceo step dow

>> our relationship with qualcomm is fine.here would have been a huge opportunity to create the powerhouse going forward, but we do not have that now. with a bright future. we are the leading -- we have a bright future. we are the leading semiconductor company. we facilitate the ability to drive connected devices which will be 75 billion by 2025. we provide a unique technology to use machine learning in artificial intelligence. >> how much does it help your future that the president gave zte an important lifeline. >> they are an important customer for us. oflost about $31 billion potential sales previously. it is a customer and one we continue to want to work with. >> so you wouldn't have done the qualcomm deal if you knew the u.s. would grow the company faster, better. that is not going to happen, so how we grow it faster and how $2 billionend the cash you walk away with. >> we will use it to expand our internal capacity. we are focused on driving growth and leadership positions in automotive. we want to make driving safer an

amd, qualcomm, duncan.here's news on comcast, mcdonald's, southwest, twitter we'll talk to a few ceos today, as well. the pre-market as we came off that late stage rally on those trade talks with the eu. more "squawk on the street" is back from post 9 ia men mont ♪ experience the versatility of utility at the lexus golden opportunity sales event. lease the 2018 rx 350 and rx 350 awd for these terms. experience amazing at your lexus dealer. are you ready to take your then you need xfinity xfi.? a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. >>> shares of amd up sharply in the premarket. the chipmakers beats on earnings after reporting its best quarterly earnings in seven years. shares are up more than 16% so far this year. joining us here at post 9 for an exclusive interview is lisa su, amd's ceo.

where are we at -- qualcomm-nxp saga. emily: qualcomm says they are pulling out. the deadline is today for the chinese government to approve the deal. bloomberg is reporting that chinese officials were prepared to approve the deal but this trade war started heating up and what appears to have happened is qualcomm and nxp have become pawns in a global trade war. the ceo of qualcomm says they still think it is a good deal. chinese authorities could still come back and say they approve it. they never said they didn't approve it, they just haven't said anything so they are leading the deadline expire. the qualcomm ceo said -- thatinly, he is implying these trade tensions had a broader affect. it is certainly a big blow to qualcomm. this is a company trying to diversify. they are a leader in mobile phone chips. as the smart phone market is plateauing, they wanted to buy nxp to get more exposure to the automotive chips sector. , which huge blow for nxp has to now convince investors that it has a strong future as an independent company. haidi: some pretty fundamental iss

. >>> when we come back, qualcomm withdrawing a bid for nxp.t steve mollenkopf had to say about the deal, china, and trade relations. and talk to tom farley in a minute despite facebook, dow up 150, s & p down three "squawk alley" back in a moment. are you ready to take your wifi to the next level? then you need xfinity xfi. a more powerful way to stay connected. it gives you super fast speeds for all your devices, provides the most wifi coverage for your home, and lets you control your network with the xfi app. it's the ultimate wifi experience. xfinity xfi, simple, easy, awesome. >>> ecb holds rates steady steve liesman is monitoring that from hq. good morning, steve. >> good morning, carl. the euro taking a hit after the press conference i think the problem is that there wasn't much news joggy continued with the outlook for plotting change. he said no rate change until summer of 2019 end of qe on track through december growth was solid and broad based. called the u.s., eu talks a good sign 116 right now. just very quickly, the differential i

semiconductors ways in, where is dan on the call, aborted bid for for- qualcomm aborted bid nxp semiconductors. the u.s. trump counts economy, the gdp top 4% last quarter and the president says trade deals will help it grow faster. republican congressman dave brat of virginia gives his take on the economy and how it will keep his party -- in power. and a democratic colleague response. ♪ shery: let's start with breaking news. abigail doolittle is here. >> the intraday chart of cbs, shares down 4.8% and on pace for the worst day since february on a report that the new yorker has a story they will pull this today accusing ceo les moonves of sexual misconduct. investors not liking this report, down 5%, down 7% on the year, they get 47 -- 40% of their revenue through advertising. down from a year ago -- years ago. we will be digging into the story more as the day goes on. major averages, mixed trading action, all down actually, earlier than higher -- the steepest decline for the nasdaq is down 20%. -- pointed percent. -- .8%. the nasdaq hit again on the week. now on pace for a weekly decline. a fiv

qualcomm pulling the plug on a proposed $44 billion buyout after china slams the door on the deal. >>> and shell announcing a massive buyback as profits soar on higher oil prices it's thursday, july 26, "worldwide exchange" begins right now. >>> all right. good morning thanks for being with us i'm brian sullivan it's a big news day today. the big theme for your money today is simple, it's going to be facebook versus trade you can see that is clearly reflected in the futures market. the dow jones pointing to a higher open. not a lot, but up 31 on the futures, mostly because of the positive comments out of the white house about a possible trade deal with europe look at this the tech heavy nasdaq futures, they are set to open up way lower following facebook's big flop last night. by the way, this is the first time we've had one of the big tech stocks truly tank like this in years the overall market reaction today may be telling can the market hold up if one of the big tech names slides? keep this in mind, right now facebook set to lose more market value today than the entire market value

of course it went above it with qua qualcomm on the whole tech thing. the earnings have constantly been reset i don't understand -- i think part of the move today don't forget the big arbor, short qualcomm and long nxp. and now they're selling nxp. >> these are good questions, pete, i'm going to jump in the reason the earnings have gone down is simply because apple has told its component manufacturers not to pay qualcomm, the licensing fees that contractually and legally they are due that's been going on a year and a half those earnings are absolutely out of the picture, but the thing is, they are owed those earnings so when you get a settlement, and i firmly believe you will get a settlement a couple things will happen. one, you're going to get a repayment. a back payment for the last year and a half of missed payment number two, that 18 times forward multiple that i was talking about is going to come down to more like 15 times when you now have the earnings from apple back in there. lastly, some people are going to say, wait a minute, aren't they losi

they said qualcomm needed to bump, which qualcomm did. on any is worth $135 standalone basis. they are putting a ceiling on the company shares. $135, which if you look at it 4, that looks like a decent amount of money to make. julie: what about on the qualcomm side? this is a company that has made itself through acquisitions. that is how it has grown. it is going to make this unit acquisition, what then? ed: it is the subject of a takeover attempt by broadcom. trump protected qualcomm, blocked broadcom so they could not make the deal. now china will blog qualcomm. scarlet: tit-for-tat. ed: it is tit-for-tat. i think qualcomm has a lot of other things going on at the moment that it would be focused on. 5g,as this huge growth in touted the future driver of its business. the other thing is a slight side issue but the fore -- the former chairman of the company said he would like to do some leveraged buyout, which the by far the biggest of all time there are other things going on that will keep qualcomm in the news. julie: thanks. appreciate i

investment byming qualcomm, hoping to continue medication with qualcomm, as well.s brings up hope for this deal could be revived. after the wto, tempers flaring between u.s. and china, it seems difficult. ramy: this makes me smile because qualcomm's ceo said this is clearly political. it's interesting to the timing of this because we know the yesterday and1:59 china is only right now saying it's a pity that this didn't happen, that qualcomm hold of this bid, saying it's regretting it. we saw qualcomm did pop after that deal was pulled. it will be interesting to see if investors are interested in making this happen, that is if beijing has the will. yvonne: and qualcomm said before, given how tensions are, he doesn't see the deal going through. china also says that deadline for the current qualcomm review is august 15. perhaps there is breathing room for it to revive. we will be watching this because what we saw in the wto was certainly tempers flaring, the was trade representative harsh on his words when it came to china trade practices and beijing saying they will

qualcomm went the other way. shares jumped on news it is prepared to abandon its pursuit of semi conductors. yvonne: busy day for earnings as well as on the trade front. gdp numbers coming out of south korea for the second quarter. coming in line with estimates at 2.9% year on year growth that we saw for the second year -- for the second quarter. 0.7% of the quarter on quarter, which is a slight deceleration from what we saw. a slight acceleration on your on your. overall speaking, solid growth numbers coming through from south korea. it will raise a lot of questions on whether the bank of korea needs to think about raising rates as soon as august. we saw in the last meeting, one dissenter calling for a rate hike. more pressure building here. we will see how korea trades when the markets open. in the back of all this positivity, when it comes to the trade front and what we got from d.c. yvonne: ramy: it was a surprise for the markets and investors because we saw u.s. equities get that top at the end of the day ri

qualcomm has a great connectivity platform. the leader so, you know, if we can work some partnerships that are, you know, good for our customers and good for both of us, i think we would consider it. it's not a priority now. we need to let a little dust settle >> i bet you do. thank you for joining us. >> thank you good to see you. >> dick clemmer ceo of nxp >>> when we return, douglas holtz-eakin sits down with rick santelli ♪ come on. come on, squirt. (dog barking) whatever your financial goals are, a u.s. bank wealth management advisor can help make them a reality. talk to one today. u.s. bank - the power of possible. how do we balance market share growth in china which is important and trekt prekting our ip which is important. >>> one trader warns there's more pain to come from the automaker ford find out which name to buy instead. more "squawk on the street" coming up. >>> the dow managing to hang on to about a 15-point gain here. let's get to the cme group now rick santelli. >> reporter: thank you, czar perha - sara i lik

i can tell you steve mullenkauf, the ceo of qualcomm.id everything i could rather than just say will you really just slag him? i really need it he couldn't do it. >> qualcomm, it is worth looking at nxp we haven't done it in a while. it is the 12th of july remember qualcomm's deal to acquire nxp semiconductor has until july 25th. it is trading well below the offer. still waiting for the approvals from china for antitrust many people want to believe that it is linked to the zte situation, and that given the okay that we got i guess yesterday from commerce on the zte deal, although there is still legislation pending in congress connected to the defense authorization bill that would reverse this, but it is unclear whether that will pass they want to believe that, well, now that this is out of the way, nxp is looking better. who knows? there is one thing i will tell you though in recent days i've been hearing from the number of nxp holders who want to believe that if in fact you get to the 25th and this deal is not extended, i'm sorry, that

. >> and we've got qualcomm and facebook after the bell.ou are not looking to put new money to work in tech at all are valuations that high >> the cyclicals or more value tech, slower growth tech, those areas of tech are cheaper. there are specific companies within tech that we're still looking at for the most part, it's been a momentum market. if you look at the russell 3000 growth, a broader index, that's been driven by technology. year-to-date, as of last week, up 12% versus the russell 2000 value up less than 1%. so technology is really a lot of the momentum behind that and so i'm a core manager. i don't discriminate between growth and value, but i want to buy things at a discount and you can't find a discount within tech right now >> meanwhile, we've been waiting for financials to reassert their leadership had a nice little run here, jpmorgan, 114. can we take the next step is the question >> yeah. it's actually a big question because they are right back up if you look at the sector chart. right back up to a level they failed at in the

to break up the back from qualcomm.ure and drive true share out of value. -- >>t to focus on where we want to focus on where nxp is going. to what extent do you blame qualcomm? i think that had nothing to do with approval in china. it could have created confusion. there was nothing about the regulations are issues that china could identify that cannot be involved. it has to be political or some other reason. it is not about the transaction itself. is not about the transaction and is political and has to do a trade or tariff issues. what is that say about any deal going forward now? rick: that is not something i am in a position to respond to. certainly raises questions when you think about it. there has been a few transactions that have an approved. .anks purchase of toshiba for some reason they chose not to approve this transaction. for us it is about moving forward. >> qualcomm had legal disputes with apple and samsung. how is your relationship with them? rick: our relationship with qualcomm is fine. there would have

qualcomm pulling the plug on a proposed $44 billion buyout after china slams the door on the deal. >> shell announcing a massive buyback as

. >> qualcomm say its ready to abandon its pursuit of nxp.hey make this decision before hearing from china? was it an nxp issue? >> i spoke to the ceo, and he said there are bigger forces at work. this is the geopolitical world we live in. we don't see that changing. qualcomm just moves forward, concentrates on what it is good at and tries to grow organically in markets like automotive. wherein said it needed nxp. ♪ emma: this is "bloomberg best." i'm emma chandra. let's continue our tour of the top business stories. now to italy, where fiat chrysler went through an executive transition and suffered a painful and permanent loss. >> fiat chrysler has named a new ceo as a health crisis left sergio marchionne unable to return to work. mike manley, a 54-year-old briton, takes over. >> he was expecting to retire from fiat chrysler in april 2019, nine months from now. fiat chrysler, there were three top candidates. marley, who was picked. the cfo will stay and work with him. investors were expecting marchionne to leave. this comes as a surprise bec

-- than qualcomm.nk you very much. coming up, soybeans surge after president trump's trade truths with the european union. this is bloomberg. ♪ c how comeo down in thes trend has accelerated in recent years fort a new generation ofs smaller rockets and to spacex which was founded by elon musk in 2002. i focus on data projects for bloomberg news in new york. there are six different rockets on the market that are designed to carry up to 300 kilograms. it is considerably cheaper than the average according to a recent report analyzed by bloomberg. it will appeal to microsatellite operators who otherwise have to --t until other of rockets among the most widely used rockets, the most affordable is this one on a kilogram basis followed by russia. the nine useithout the recycled boosters, the cost falls even further. year's spacex also successfully test launched which aims to be even cheaper per kilogram then falcon nine. i am andre from bloomberg news and you can follow me at @andre tartare and get all of you

the chief executive officer of qualcomm blaming trade tensions with china.ten up, qualcomm, your c ex-o needs a history lesson, a business lesson and a lesson in economics and politics for the failed acquisitions deal with nxt. the company wanted to buy the dutch owned nxp for $44 billion but failed to get the final green light from chinese officials. mnuchin said it was unfortunate that china got in the deal. the fact of the matter is that china gets in the way of a lot of things and the ceo of qualcomm really does need a little perspective. joining us now, retired four star general, fox business chief strategic analyst, general jack keane. isn't it great to have a trade representative with that kind of passion and that kind of understanding of economics and the impact of trade, trade deficits, imbalanced trade globally? >> yeah, when you take lighthizer and hook him up with navarro who wrote the defining books about what china is doing to us, they're like a killer app. it's quite remarkable. lou: and why this president? you know, i often wonder, if he had

qualcomm, flat.e deal might not go through today as deadline date, nbc reporting multiple -- at the company is preparing to give up its bid earlier today saying the company is unlikely to get approval, idea.oint to the same happens, and it is saying qualcomm is likely to focus on buybacks instead. lisa: thank you. 60% year to date per let's get to first word news with mark crumpton. mark: european union commission president telling president trump that the eu and the u.s. and intners and allies his words, not enemies. must work together in the start of trade talks into major economies. mr. trump a meeting in the oval office was told trade talks are important. jesting their reducing tariffs instead of increasing them. did knowledge the importance of trade with europe. president trump: together as a unit come we make up more than 50% of world trade and that is a big number. a big number. positiveect something to take place but you will be the first to know. >> president threatened to impose tariffs on

emily: the ceo of broadcom, and the qualcomm birds did not happen. they are still as ambitious as always. >> it makes zero strategic sense. two, you are going so far out of your core competence that the only thing you can do, you can execute a financial engineering play better than most semiconductor makers. is this all we got? emily: to what end? >> to expand eps, margins, creative, etc.. but, is this all we have? we can do better than this. we can accumulate multiple small semiconductor makers. agreed that qualcomm slipped away, agreed there a not that many left. you plenty chipmakers in the e an impact.av the qualcomm industry is going under a substantial amount of drama. that could fall through. then, and xp gets back in play. would that not be an interesting acquisition candidate? historically been into auto so that is drawn the there, but i'm puzzled, as is most with the market. the stocks are off right now. i think broadcom could have done better. >> i completely agree. we were talking about this before we went on the air. it is one of the hea

qualcomm is and $84 billion company. ca is about a $15 billion company.lso importantly based in new york. not looking like an international deal in this particular case. 44.50 a share. on today's ca shares session. if you look at the after-hours session, you have it on scarlet's terminal there. you see the pop in the shares at 16% in the ca shares. we of the qualcomm -- excuse me, broadcom shares up and trending downward on this headline. this is a journal headline we are working on at bloomberg and we will bring you any developments when they do happen. there is after-hours trade in those two stocks. coming up, speaking with tech, washington and tech are suffering the managed-care space -- are disrupting the managed care space. from new york, this is bloomberg. ♪ mark: i'm mark crumpton with first word news. members of the u.s. senate are president trump's criticism of european allies is unfolding even as he meets with them during a nato summit in brussels. today, the president said germany is "totally controlled by and captain to russia because of a gas

we'll see if run up too much into earnings or got further to go >> along with ford and qualcomm tonight. we'll keep a close eye on d.c. with these trade talks over to the judge and the half zblnchs welcome the top trade, the facebook face off. ahead of the company's critical earnings tonight, our traders debate whether it is the best faang stock to own right now here to debate now, jon and pete, sarat. let's begin with the market. stocks are mixed nasdaq strong again as becount down to the facebook earnings. the best performi ining fang stk over the past three months why has it been outperform iing? >> it was sold off we know the whole story with the cambridge analytic then everybody started looking at the numbers let's look past this for a moment how is facebook doing. when you look at this company in the world of fang, stcott, look at the pe of facebook. when i look across facebook, i don't own netflix, amazon. i own facebook i own facebook stock, calls. the reason is they've got so many verticals and i think zuckerberg has done a magnificent job of at least taking a lot of what the h

about a year ago, broadcom tried to buy toshiba's memory business, very typical and they went after qualcommery aggressively and so much so they redomiciled to the u.s. to make that deal happen. that didn't go through and nowi they're b a software company, and i just think it's -- what you're sing today is the straw that broke the camel's back. >> scratchinghi my head and we are left a bit perplexed and expect investors will be, as well. this deal runs completely against the investment narrative thaten manag has been articulating since their a toechatempt to buy qualcomm. it was obstructed by the trump administration which citec national sity concerns since broadcom was headquartered in singapore. broadcom moved its head quarters to san jose, california. despite the move to the s., some analysts say the deal could ill face regulatory scrutiny. despite those potential hurdles, analysts at jefferies are bullish on theon, arguing that while the deal is a stretch from broadcom's corebusiness, pointing out that it is still consistent with the chipmaker's stragy of acquiring out of favor market le

. >> so yesterday the chinese regulators did not approve the qualcomm p.i. deal and not that intel was on the market to do anything and that underscores the notion that for chip companies right now it is the business that they have. survive on their own. >> that there is no combination at least while the trade war is going on >> it's interesting. i agree with everything that dan said intel is not ridiculously expensive and the uncertainty on the ceo level is concerning. asps were okay. >> do you think he would be a good ceo of intel? >> i don't know. >> they've taken a step back from servers and that's where intel is growing do you think a deal can get through? >> in the u.s., yeah i do. >> qualcomm is better buying back their own stock in my opinion. >> which they are doing. >> quickly >> fair enough >> it's on fire. >> but most of the things that qualcomm have been self-induced. they seem to have gotten -- i don't know let's talk about amd real quick, though >> very quickly. >> 21 now. >> down to 21 and this has gone from ten when susquehanna downgraded it

qualcomm, when you think about who has been impacted most by trump as a corporate entity, qualcomm maye the winner >> in the worst way. that's the thing between trade fights, between how antitrust agencies in government are acting, there's a lot of inconsistency >> at&t also >> exactly how do i navigate anything >> not knowing the rules of the road, not understanding -- >> lack of consistency, lack of precedent is a thing that if i'm going to buy something or acquire something, if i'm the target, i don't know how to -- >> you don't want capricious decisions. >>> let's tell you about some other stocks to watch. ford cutting its earnings forecast for the year. they blame slumping sales, struggling business in europe, and trade tariffs in china that stock is down this morning. >>> paypal shares down 3%. second quarter profit beat forecast shares are down sharply today as the third quarter guidance fell short of what the street was expecting. >>> amd's second quarter results topping forecast a surge in demand for pcs boosting sales of its processor as well as graphic chips used in computer

/nxp deal there were none. >> no. >> i mean, yes, they didn't qualcomm -- one of the undercurrents weualcomm to be more powerful they had a trust bust teddy roosevelt approach but that's a real stretch. otherwise that was just not a good call versus all the other mergers they just always said fine to. >> we speculated on what price nxp would inhabit after the deal broke. we have our answer, i guess. $95. >> your interview was powerful. >> yeah. >> with clemmer last week. they have a lot of cash buying back stock there's a possibility that nxp, we were concerned about, might not be able to get a lot of apple business because the tie up with qualcomm i know they're connected auto and people are worried and china, you know, the stock could go up if china does -- if you get a europe out of china. how about larry kudlow predicting at delivering alpha there could be a surprise with europe >> yeah. >> almost as if he was clearly in doing -- >> or the talks, at least, took place last week. >> but china differs, obviously. but i think that nxp is being valued similar to the other companies in

qualcomm didn't happen. got got involved. certainly, still ambitious as always. >> number one makes zero strategic sense. number two, you're going so far your core competence a only ting you can do, this is financial engineering. it plays ber than most betterductor makers and than most technology companies. got?is all we to expand margins and etcetera. got?is all we we can do better than this. multiplecumulate a makers.semiconductor qualcomm slipped away. agreed there's not that many left. plenty of chip makers put have enough size or together few of them to have an back. is undergoing substantial market drama now. emily: also relative to china. could fall through. i'm little puzzled as is most of the particulate the stocks are 15% now. or take. broadcom could have done better. one of those head scratching things. from?did this come clearly it's this conglomerate to tech put related together. there's no integration with customers or supply chain with anything. it makes you scratch your head, what are they possibly thinking? a

qualcomm, intel, qualcomm interesting because of the deal with semiconductors linked to the fate of china's and we heard it would resume some of its business activities which would make way for the qualcomm deal. that is a percent remember on tuesday dropped 5.5% at your china promoted it -- analysts had it will -- a bit differently, saying it may not ,he that they govern obstacle saying it hurt revenues by about 1%. the stock --s to stock of the hour. sincehaving its best day may 3. we have a chart here which shows s&pompared to the information technology index and you can see it is up by 22% year up just by 11%. the company makes chips that control other chips. it also got a key up great, keybank, and they were citing that china's smart phone trend, stabilizing iphone demand is high and they have had greater than expected market share gains in china smart phones. apple itself is one of its biggest revenue drivers. >> the stock index and all of those chipmakers get 25% of revenue from china and they are still rise even on that news. the outlook as we go forward? >> that is interesting. we'

i have to tell you, that qualcomm is -- >> wait a second i got to blather on.et me do that i'm kidding. >> do a faber report. >> you're right. say that set a range of prices which it's willing to buy the stock where within the range they would like to sell. if at all. purchase price is the lowest price at which qualcomm can buy back an aggregate of $10 billion worth of stock. >> that's a buy back and a half. >> yes, it is. that's a buy back of a different color. >> yes, it is. qualcomm said it's between 60 and 67.50. >> i think judging from the actual -- it started flat today, david. it's now up $2 so, david, i turn to you and ask you, explain this to people if you're bullish on qualcomm, you do what? if you want to cut your qualcomminqualcomm position, what do you do >> tender in. >> right. >> this is maybe the referendum? >> right. >> see how your shareholder base looks afterwards over a relatively short amount of time but this is immediate. almost immediate. >> and if apple they settle with apple -- >> what do you think >> yeah. >> apple goes to 70. >> yeah.

nxp gave qualcomm until midnight wednesday to get it done.is your latest bloomberg business flash. ,aroline: let's shift gears there are questions after sergio marchionne abruptly shift -- abruptly stepped down due to health issues. let's bring in the senior italy reporter. our thoughts go to his family. reaction, about the the shocked reaction from the market, a selloff, particularly in the worry. we always ask -- particularly in ferrari. we always expected him to retire but not so quickly. >> the reaction is interesting is fallingferrari more quickly than fiat. marchionne was expected to require -- to retire in 2019. this process was in place. there were three top candidates. altavilla.av were expecting marchionne to leave. , this comes as a big surprise because he was meant to stay there. he was going to present the new business plan in september which would transfer ferrari into the producer of an suv. this is why the reaction is bigger. faiatne: i look at how has significantly outperformed the rest of the market when it comes to its peer

qualcomm terminates its deal to

a semiconductor says qualcomm has ended its bid. to improve the largest ever take over before its final deadline. and xp will get to billion dollars in compensation. meanwhile, qualcomm plans to buy back $30 billion of stock. and the world's largest plan for bio back -- for a buy back, earnings at -- have shifted into higher gear thanks to strong sales in berman and gin. sales beat estimates. we spoke with their ceo. >> we have had a good year. and what is behind it, earnings per share were up 9.6%, we increased the dividends, and you can see the stock buyback. but what is really pleasing is the consistency of sustainable performance. all of our regions around the world were in growth. taylor: second quarter profit doubled at airbus. the playmaker accelerate deliveries of its best-selling jets. those had been delayed by problems with the engine provider, and it led to a hold up in customer payments. and visa says that america's love for credit card debt has boosted profits. spending on the products rose 11% in the fiscal third quart

qualcomm and nxp deal totally overpeer will we see paul jacobs, the former ceo of qualcomm, come in andt to take the company private? it has also been pursued by broadcom as well. this is a big loss, i think, losing nxp. they have to they a substantial breakup fee, the $2 billion. thing to do with all the cash that they have. david: it was go big or go home. it was a really big deal. if it worked, it would have transformed that part of the tech industry. now that it did not, what is left? clearly they need to go somewhere. alix: a $30 million share buyback is where they go at the end of the day. david: comcast beat under earnings per share. in a narrow miss under revenue. underscorequestions the dangers for a traditional media company, and over the top that is replacing the traditional cable subscribers. comcast having knocked out between for first century fox as that, now where do they go? what do they do? it does not really give them the level of content that bob iger has been after, and apparently has gotten a vote, by the way, today for the disney acquisition. alix: we are looking f

the chip maker's acquisition remember comes on the heels of its failed bid to buy qualcomm and other. >> joining us now to the discuss the rationale or lack of it from this deal. guys, i guess for one thing there was a lot of sort of confounded reaction to this deal obviously ca is a mainframe software business, kind of slow growth, not really directly connected to broadcom's business >> they're thinking about taking dollar sheet and convert it into earnings per share that's not what i think investors want if you go -- just to put things in context if you go back about a year ago broadcom tried to buy toshiba's business and then they went after qualcomm very aggressively, and that didn't go through. and now they're buying a software company i think what you're seeing today is the straw that broke the camel's back >> so i went back to the press release, john, when they announced this deal. always get a quote from the ceos it's quoted as saying this represents one of the biggest building blocks as it represents the infrastructure of the technology companies >> something they've done wh

qualcomm decided to terminate , they$44 billion bid follow from the trade war as they simply could not get the approval from china. shery: although there might be a sigh of relief when it comes to trade tensions with europe, shares of european carmakers surged after president trump backed off on his tariffs for imported cars. and john klug younger agreed -- jean-claude yunker agreed to put off a trade were. both sides will work towards having zero trade barriers. we have senator cardin. seen president trump get some concessions from the europeans. you have been more skeptical of his negotiating tactic. would you say he has been more effective to some extent? senator cardin: it was the president that created the problem with our traditional starting first with using section 232, a national security waiver to impose tariffs against our friends coming coding canada. that caused a division among countries that should be united on removing trade barriers globally. so it started in a bad position. it has hurt a lot of companies. we know a lot of companies in the supply chain are feeling this

. >> qualcomm ready to abandon its xp.suit of annex the -- n issue?the ceo says there are bigger forces at work. we don't see that changing. qualcomm just moves forward and concentrates on what it is good at and tries to grow organically in markets like automotive. house through a lifeline to farmers caught in the crosshairs of the trade war. they announced a $12 billion aid package to farmers. when will it be employed? >> we still need to know a lot of details. the white house announced $12 billion in assistance to farmers. it will come in three ways. what is direct purchases of commodities like soybeans, sorghum, commodities targeted under this trade action we have seen going back with china and other countries. you have direct purchase of commodities for food assistance programs and distribution. that's everything from all months -- almonds and other forms of fruit and vegetables. and trade promotion. own tradeent's policies are creating the situation and that has a lot of republicans in congress concerned about the amount of money spent basically

qualcomm said it would drop its offer to buy nxp semiconductors because it failed to secure regulatoryof widening trade tensions. the three biggest us airlines are combined with a chinese demand to change how they refer to taiwan. china instructed 44 international carriers plus other companies not to refer to taiwan as a non— chinese territory. moving down to australia and television broadcaster nine says it has purchased fairfax media in a deal worth 1.6 billion us dollars. joining a slide from sydney is simon atkinson. how significant is this media deal in australia? it's caused quite a shock, nobody was expecting this announcement. it fell a couple of hours ago and it's been taken. titles like the sydney morning herald, the age, the australian financial review, a name that will disappearfrom financial review, a name that will disappear from the media financial review, a name that will disappearfrom the media landscape. this new combined company is going to be branded nine so a lot of journalists and formerjournalists who are bemoaning the loss of this historic name. what it really m

reporting, which is that qualcomm is not going to extend its deal to acquire nxp beyond the july 25thine they currently have the question is are the chinese antitrust authorities going to approve this deal in the next day or two don't know if you've talked to kudlow offline >> i honestly debated that versus asking about actual policy i came so close to asking. it was in my list but a lot of other things -- why didn't we give -- a quid pro quo we do this for zte why don't we get nxp i thought that was a little bit in the weeds larry kudlow pointed out the actual companies that have full-time business in china that he doesn't think will be retaliated against -- that's apple. but he talked about joint ventures in movies and how little or movie companies get. >> he did say that 25%. maybe that's why they'll let the disney/fox deal go through >> that's why i bring it up. because if these critics of mine that you talked to, tell them i talked about disney more than zte. small-minded little people who are these small-minded little people that criticize the best interview i've ever done? >> w