emily: what is this mean for qualcomm?pace,cially in the chip there was quite a rally in chip stocks since the g20 meetings when it seemed like there was some progress being made. it doesn't seem at there was a huge selloff in chip stocks because of these recent trump tweets that sara indicated make it sound like these negotiations could drag on past the election. i think that is mostly because the election -- while that is happening the tensions are not escalating. he has not made any threats of new tariffs at the moment. that is something that could can't -- change day by day. stocks, it has been a noisy quarter for chipmakers. some customers accelerated purchases of chips earlier in the year in order to get ahead of what they consider to be an escalating trade tension situation. it is definitely causing noise in the earnings report. it is not the first thing companies are talking about but it could change if it looks like tensions are going to ratchet up that potentially more tariffs could be in store. what is the likel

we are still waiting for clock -- qualcomm earnings being released. in terms of china to one side, we were just hearing about gold as well. commodities. how much are we seeing that being drawn into -- qualcomm has just come out with its numbers. revenue $4.9 billion. that is a mess. estimates were $5.1 billion. revenue a miss but this is a company that perhaps all eyes were on the appeal of the ftc which could of and its entire business model. >> we might have to wait a little bit longer to get more clarity. this is kind of a regulatory play right now with regard to the future of this company. >> this also means that if qualcomm continues to fall, that could mean more losses for the philadelphia semiconductor index and an etf that tracks chip companies. is qualcomm representative of the rest of the sector or is it idiosyncratic because of its own issues? >> romain is right. there is a cliff event going on here. looking at the revenue miss and the stockshat to generally, this is about a manufacturing slowdown globally. this is a cyclical sector. that i

qualcomm, it is amazing.he size of company this is, since the beginning of 2016 the moves in this stocks over a six-month period is staggering i am about to say something, everybody probably will disagree, but $70 here, you might want to look at this fourth quarter guided. >> i love that. >> it was a disaster. >> you really -- >> no, but this was a $50 stock in january. >> enough. >> it was a $90 stock like a month ago, and here we are at the midpoint of that range tomorrow is going to be a messy day. i get it but 70 is a really interesting entry point. >> apple now, you know, buying intel as part of the business for the smartphone chips, do you want to be in qualcomm >> they might have lowered guidance enough for this current quarter it is worth a do somewhere in the 60s that is probably going back towards 65 before it bottoms out. if you think about that, expectations lower, one thing we know is that they settled a long-standing license dispute with apple apple we know will not have a 5g phone until 2021 th

he says that apple building its own modems could weigh on future qualcomm revenues.ut on the other hand, remember that apple and qualcomm has that six-year license agreement and a multi-year chip set supply agreement. and even if cook pulls the trigger on this acquisition, int remains to be seen whether apple can really build a scaleable 5g modem in house back to you guys >> all right, josh, thank you. bradley, it's a continuation of a story that we've seen from apple ever since they bought p.a. semi. they had been about os and hardware together. now they're about deeply integrating that hardware. assuming they do this and continue the trend, what does it mean for the tech ecosystem and companies like the one you invest in. >> i think what it means is when you have a business that relies basically on a third party, another company being your main customer, you've got to always worry about what happens if they take this thing in house i'll give you an example oftentimes, people come to me and pitch that they're going to do some new thing around taxi and they come to m

still ahead, qualcomm is our stock of the hour.he chipmaker is dealt another blow in the federal antitrust case. that is next and this is bloomberg. ♪ david: you are watching "balance of power." time for our stock of the hour. qualcomm shares are under pressure after samsung's quarterly results underscore demand concern. kailey leinz is here to tell us about it. kailey: you have to hop on over to korea and samsung. profit topped expectations. it was the fact that their operating income dropped by so much. i have a chart on gtv . it fell 50% in the quarter. that is emphasizing the headwinds these companies are facing in chips and mobile between the u.s. and china. ongoing trade in terms concerns and the global economic slowdown weighing on demand. you are seeing chipmakers fall. qualcomm dealing with other issues as well. david: you have to give them credit. they missed by 56% and beat expectations. there was a role for the antitrust judge that said we will not say this after all. stay.: they'd asked for a she had ruled against

>> think back to the qualcomm settlement in april.y had four options of what to do if they wanted to get to 5g they could settle, swallow their pride or settle with qualcomminl they are known for making me mos they could go to huawei. they could wait and start from scratch. the competitors and samsung is putting out 5g phones. this is the best thing to do settle with qualcomm longer term, apple is a big proponent of doing everything they can inhouse to make their processors in house. that's hugely successful better processors than anyone in the mobile space same for modems. >> mitch, how successful is apple for the longer term and what does it mean for the competition? >> you have to bet on apple a little bit they have done this before they designed the chip which is a power management side. one thing i'm concerned is power management ic and 5g is not same game you cannot guarantee they will successfully create a smartphone modem. you will say they invest significantly into it. qualcomm has 60% of the 4g market and now significantly s

headlines dropping here from qualcomm reuters is reported that the u.s.epartment of justice has asked a federal appeals court to pause in position of this antitrust ruling against qualcomm apparently with support from the energy and defense departments you recall back in may this judge ruled that the chip maker had violated antitrust laws, siding with the ftc, said qualcomm was suppressing competition. qualcomm disagreed with the conclusions and is filing for an appeal of that decision, but also asked the 9th circuit for a stay in other words put on hold two of the remedies until this appeal is heard, and now the u.s. government apparently saying, yes, you should grant that stay and qualcomm moving higher here in the after hours brian, back to you. >> guys, thank you very much josh lipton. stock is up about 3% on the news anybody here got a strong opinion on qualcomm? this has been a court case -- qualcomm and court case and litigation and settlement are words we used with the stock for the better part of five to seven years. >> that's been the bet on the

the big ones were qualcomm and intel with qualcomm very much ahead. actually why apple struck the deal with qualcomm earlier this year. apple uses intel modems right now, but the fact of the matter is apple is intel's only relevant customer. intel is spending resources on keeping this unit alive just are apple, which from a business standpoint did not make sense. emily: what kind of advantage does this give apple in the middle of a trade war, supply chain issues, and the desire to make its own chips? >> right, so, building modems is a very intense process. it comes down to two real important things. you need as many people with the engineering background to build modems as possible. you need the infrastructure, the wireless testing environments, and the partnerships with cell carriers, and the patents. intel had to of those things. apple is getting over 2200 engineers and the patents. we saw why patents were so important given a little cold war with qualcomm. what apple did already have was the devices to put these things in. the infrastructure for te

break downr, we will qualcomm earnings and the challenges it is facing with bloomberg intelligence. first, let's get you started marketsheck of how closed this wednesday session. it was a down day across the board. every sector in the red. we had that 25 basis point cut from the federal reserve, but it was taken more as a hawkish cut with chair powell's comments. we saw significant pressure there. we have seen a roller coaster ride throughout the session. the s&p 500 did rebound a little bit when fed chair powell did not completely rule out further cuts. the nasdaq was down more than 1% and we continue to seek u.s. futures under pressure. 10-year yields were pressured for a fourth consecutive session, although two-year yields jumped. not really yielding significant progress causal -- not really yielding significant progress, also dampening market sentiment. sophie: asian markets looking at a stop start to august with all major markets tracking lower led by india and south korea, and there may be more headwind for notan stocks, but japan showing signs of removing its neighbor from th

so what does this all mean for qualcomm apple building its own modems could certainly weigh on future qualcomm revenues, but tech analyst patrick morehead said this is a longterm potential threat, it could take five years to scale a 5g modem business it takes that long, he argues, to build out the supply chain for such a component, guys >> josh, if anything, it's qualcomm who is sitting this one out. >> yeah, i mean, listen, morehead's point would be, you know, really right now, qualcomm is the only name in town when it comes to 5g. it is interesting if these reports are accurate because it is apple trying to position itself for the future, and part of this broader trend you see of apple bringing more chip design in house there are a few reasons they would do that. they do that because at scale, it can be more cost effective. you can customize those products, and certainly, secrecy, if you're making the chips, maybe harder for your rivals to see what you have coming in the pipeline >> josh, thanks. appreciate it. check out the chips overall. the smh that tracks the group is 1% away fr

the agreement with qualcomm gave them the ability to use qualcomm modems the intel modem wasn't workinguldn't have had a 5g phone. and the other thing is getting it to all price points that's one of the issues, the phone is a bit too expensive to draw product cycles. >> what do you make of the chatter around johnny ive leaving and what's left of the company? can apple survive on services or does it need this next innovate product? >> i think the conversation has gone back and forth between, is his leaving a symptom of where apple is at right now? in other words, is the cutting edge design and the product-centric focus is not really where the company is, or was it just they weren't utilizing him correctly and he's offer to other things? i think obviously apple can survive it, but the question is, can the market pay up for that services business, when it isn't really purely a distinct edge that apple has, except for the fact that it can harvest from this ecosystem the same kind of things that people are getting from theirs, it just happens to have a bigger one. >> chris, the same question

that important ftcst trac, antitrust ruling against qual y antitrust ruling against qual y qualcomm give me a quality fund that helps me get clients closer to their goals. flexshares etfs are designed and managed around investor objectives. so you can advise with confidence. before investing, consider the fund's investment objectives, risks, charges and expenses. go to flexshares.com for a prospectus containing this information. read it carefully. >>> welcome back time to get the word on the street goldman sachs downgrading to sell this morning. the firm sees risk for power brands with high exposures to department stores and to the north american market. the mall as well they expect headwinds to intensify. >>> expecting homebuilder management to. >>> the china team returning from a visit of local suppliers, based on those chex, they expect it may be able to ramp china production faster than anticipated. that stock is up 1.5% right now. josh, what do you think of any of these names >> i think we sometimes forget how hard retail is they rally sometimes on short cover, but it's a relen

qualcomm falling after missing estimates. to get a boost from the apple settlement. >> it looks like investors looking at the outlook, let's go to the number of stocks reporting. you see the various moves. qualcomm down after missing software and internet-based company also down. you have metlife and insurance doing well. qualcomm, fourth-quarter revenue is the lowest estimate and they are saying the technology licenses are continuing to pay. that was a right spot gearing up for the 5g debut. hurting near-term. 51%,t sales surged accounting for more than half the revenue, but weaker than expected sales so they are hurting big time. back to you. paul: thanks very much. joining us now is the chairman and cio of cumberland advisors. thanks for joining us. let's get to the fed decision. facedid the fed would be with a challenging communications effort. considering the profound reaction we saw across all asset classes, equities, the bond market, did jay powell fail that challenge? could havejay powell had greater clarity. he used

but the intel modem was never as good as the qualcomm modem they brought intel in basically to keep qualcommonest and then you know what happened with the legal issues i think once they get that working -- one day they will get it working -- it will be used to keep qualcomm honest the question is in the hands of apple, will they be able to catch up to qualcomm >> maybe it's a good deal on both fronts. maybe a good deal for intel and also apple >> yes once you're starting behind in tech, that business is already in the hole, will they ever completely catch up to qualcomm? >> can you speak to this, not related to intel, but on 5g there was an article last week talking about how these phones you think will be out in 2020. the reporter doing this article about 5g saying they had to ice the phones to make them work they were walking around with literally like big jugs of ace to put them in because they're too hot. do you think this is happening in 2020? >> i do. you know, that's -- it's actually a good example of why apple needed to do what they did. that's based on first generation 5g modems, th

shares falling off missing qualcomm's revenue estimates.ng up find out what the chip maker's cfo is saying about the maker's cfo is saying about the quarter. ♪ in big ways and in small, bank of america is here to help you get things done. what would you like the power to do?® ♪ done >>> fitbit is sinking in after-hours trading. seema mody has the -- >> the stock is plunging on poor guidance, partly due to cheaper wearables. they were up 31% which did beat street expectations, the average selling price decreased 19% to $86 per device, and fitbit says that's due to the introduction of more affordable devices now, on guidance fitbit now expect a much bigger than expected loss for the year saying wheel we're disappointed, we remain confident in our los angeles-term transformation strategy, but clearly investors rye view the numbers president stock was down as much as 19% position come off the lowing, but still down about 12%. >> seema, thank you very much. >> different performance, in and out unrelated to apple's success most likely, and probab

ian: qualcomm, you remember the big settlement. the bitter legal dispute. qualcomm is a 5g maker.e looking at for the rest of the year with intel, or even over the next couple of years given what is happening in china? ian: a lot of the questions that bob based on the call were about that. he was pretty up front. look, i'm assumptions for the rest of the year which is a gradual improvement are based upon the china situation as it exists now. we are not assuming you get better, we are not assuming it gets worse. we don't see a china trade deal. we don't see huawei get help. emily: bloomberg's ian king, thank you so much. still ahead, the vision fund is getting a sequel. we've got details on how the ceo is replicating the $100 billion plan. this is bloomberg. ♪ ♪ emily: softbank unveiled the second mega fund for tech investments that is even larger than the original vision fund. it aims to raise $108 billion for vision fund 2 for more than a dozen investors, including apple and microsoft, and kazakhstan's sovereign wealth fund. softbank adding $38 billion to the fund, replacing saud

downgrade in the would you rather gain. >> why >> i think qualcomm is too cheap. think they have a great balance sheet and you are playing stock market with qualcomm i don't think you want to short that name. >>> next guest says something is happening in the market that is signaling an even bigger rally for chips. let's go off the charts with rob slimer of funds stock. what are you looking at? >> thanks. i think what is happening it is the thin evenly of a bigger trade developing for the broader market cycle if we look at the opposite side of the trade and we look at the bond proxies, we think bond yields are oversold and due to rebound moving into the second half the names that benefited from that, staples and utilities we think are at risk. looking at a couple of the charts, it is interesting. if we look at the trend channel or trend line at the upper end of where pepsi has been trading and then we look at where the momentum indicators are, we think that after this big move that we have had into 2019, there's risk in these stocks but they come back in. so we're

right now they use a combination of moderate else from qualcomm and intel.as been looking at ways across its portfolio, all the components to reduce reliance on third party suppliers. building their own moderate emwould do that. buying this modem business for $is billion, they would get hundreds of pat end to jumpstart the business. they have been looking to off load the business after shuttering it recent months. >> we will continue to follow that. you have a new piece about apple c.o.o., who has tim cooks old job. you talked to former employees about his management style. with johnny leaving, he has basically the entire design team erroring to him. tell us about jeff williams and what you learned? >> williams is a very respected manager of apple. he does more than his title seems to indicate, even though c.o.o. is a pretty big number two title. he over sos product development and in lower level meeting. he is big beach house on the coast of california he causes a shack. he has a knack for being pretty modest at work. e used to drive a toyota camry even tho

liana: before they went after qualcomm, they had a singapore headquarters. they are now totally in the u.s. to alleviate that issue. but cybersecurity is a national security concern and symantec does do work for the u.s. government. the review is definitely something investors will be watching to see how it goes. there could also be an e.u. review. no slam dunk for any large deal where there is a national security element. caroline: putting regularly -- regulatory concerns to one side you have spelled out why this might be a perfect fit. interestingly, other analysts are questioning management's strategic direction here. do you think it is the right direction to be going focused in cybersecurity? we have seen other players do it but how does it fit with the chip space? harsh: i think broadcom is focused similarly on capital returns to the shareholders, driving profitability. understand, this is a company that was on the cusp of 50% operating margin, a region no other company approached in the semiconductor land. with the ca deal, they were able to push it cl

they are teaming up with qualcomm to work on global gaming devices. let's bring in ian king.s expected to the trump administration that is trying to apply pressure on beijing through chinese firms? ian: i think the way to look at it is obviously an american company like qualcomm by going publicly saying they are working with a chinese company is showing you how important the chinese market is. singles the biggest market for semi conductors and tencent is a very important part of what is going on and this shows how important it is, even at a time where there is perhaps more scrutiny on the arrangement and the ties politically. but they said they just have to do this. paul: how timely is this, concerning we have qualcomm reporting earnings up after the market closed wednesday and trying to rekindle sales? what are you watching for? is: the story of qualcomm after all the travails they have had, the legal problems, they said, wait until 5g comes along and then we will be off to the races again. unfortunately for them, 5g has not come along yet and they are trying to keep that op

after qualcomm they had a singapore headquarters.y have moved totally to the u.s. to try to alleviate that issue. cybersecurity is a national security concern and semantic works for the u.s. government. the review is definitely something investors will be watching to see how it goes. there could be an eu review. no slamdunk for any large deal where is -- where there is this security element. >> putting regulatory concerns to one side, you have spelled out why you think this might be a perfect fit. interestingly, other analysts and investors are questioning the management strategic direction. do you think it is the right direction to be going, more focused on cybersecurity? we've seen other players do it, but how does this fit with broadening outside of the chip space? >> i think broadcom is focused singularly on capital returns to shareholders driving free cash flow and profitability. understand this was a company that was at the cusp of a 50% operating margin in a region no other company had been able to approach in the semi conduct

qualcomm is down. now this. susan: we are doing qualcomm. come on give me a chance here.san: qualcomm is in advance talked to buy 5g chips business. qualcomm basically dominates the space in smartphones. qualcomm and apple signed a two year deal after a two year court battle around the world. why is that apple? apple want to control their supply chain in the future. they have a deal with qualcomm. imagine if they control their own chips in the future, do they need qualcomm? stuart: is this all about getting into 5g? susan: it is. it is also important for apple itself not to be, shall we say, hostile. stuart: but apple is up on this news. susan: that is true. stuart: qualcomm is down. susan: right. stuart: intel is up, because that is the three-way split going on here. susan: only a billion dollars, right? rounding error for apple. stuart: it is. shortly, literally momentarily, seconds from now, brian kilmeade will appear on your screens. he is the host of the brian kilmeade radio show. he will join me right now. there he is. i have to talk to you about the yankees legend,

and late today the department of justice asked an appeals court to pau antitrust ruling against qualcomm month ago you recall a judge ruled that qualcomm illegally suppressed the market with smartphone chips. after hours trading on that closed at 75.67. >>> and coming up, no ad, no problem. companies are using a different marketing strategy to target bing watchers. ♪ ♪ ♪ >>> kia is shutting down its one american factory. the company plans to move operations to europe due to raw material costs that it says are higher here in the u.s. kia says shifting the workro to and importing the goods will make its furniture in north america more affordable, the danvilleik plant employees 300 workers. >>> tonight we will look at how way weny has changed t watch tv and the way companies advertise. here is julia boorstin. >> reporter: netflix is roughly 150illion subscribers bingeing with no commercial breaks that pushed advertisers to find new ways to rch viewers glued to ad-freela ptforms. one example is new occoke. wia-cola bringing back limited edition coke cans for le, turning the company's failure

we know that apple reached that licensing agreement with qualcomm earlier this year that will be extended over the next few years likely this is a move for apple to shift both employees, intellectual property and resources to their own company >> elizabeth schulze, thank you. >>> investors are bracing for the busiest week of earnings season next week more than 150 s&p 500 companies and seven dow components are set to report in the coming week including apple, pfizer, verizon, qualcomm, chevron and that's just to name a few. first we have to get through today when we hear from the likes of twitter, also mcdonald's and more. joining me is aaron gibbs of gibbs wealth management. so, aaron, earnings season is still not over the hump, but there are themes developing. what is driving the trading action this season >> so one is that we've seen a slightly higher on the miss side just in the past week. and we actually noticed that quk q2 earnings expectations tanked. they looked like they would be flat, and they've gone back down to negative 1% so we're in contraction territory. that's from some c

and after the qualcomm deal fell away.makes symantec sort of all the more vulnerable, so to speak, to being bought out at the moment? >> there's been a lot of drama at symantec. as we've been following, their c.e.o. greg clark had been ousted a few months ago. there have been an acting investigation. and then starboard value, an activist investor, came on the scene and was pressuring the company and they got a few board seats. so it really is a vulnerable time for symantec for a takeover. >> we were just talking about the t-mobile-sprint deal and the regulatory issues at that. are there going to be cfius or regulatory issues with this deal, considering broadcom in the past wasn't able to get through the qualcomm deal? >> before broadcom went after qualcomm, they had a singapore headquarters. they have now moved totally to the u.s., so they are trying to alleviate that issue. cyber security is a national security issue and symantec does work for the u.s. government. so the cfius review is something investors will be watchin

i will have qualcomm ceo as usual on the phone but before the numbers come out to see how he plans toahead tomorrow, 4%, it will have a helpful impact on the future. >> we have this little thing called the fed meeting. >> that's right. >> so world class companies that are executing pretty well, i think was the after-hours message today but the market has figured out they've done okay with the flat earnings stretch we've been in for the overall market and now, yes, the fed. >> i think the key question is what he says in the news conference, right? >> it is. >> the rate indicate is built in. >> how much they want to say, look, this is it, we're going on hold for a while i think the consensus is coalescing around the idea there will be -- >> and of course that news conference will start on "power lunch" and finish here on "closing bell" tomorrow. we don't want to miss that we're out of time. thanks for watching. >> "fast money" begins right now. ♪ >>> live from the nasdaq market site overlooking new york city's times square, this is "fast money" i'm melissa lee. traders on the desk are t

>> we heard this before, but it went on hold when apple reached that licensing agreement with qualcomm earlier what apple would be looking to do is bring the 5g modem production inhouse and take over that business that intel could not successfully do itself they is a trend we have seen with samsung and huawei. they make their own 5g chips in-house we have not seen a 5g phone from apple, it is clear that's the direction the market is heading. it looks like apple could be considering a big deal, much bigger than we've seen from apple in recent years in order to keep up with other players in the market >> so this would be to reduce their reliance on qualcomm effectively? they want to do it themselves so they don't depend on an outside provider, particularly given the trade environment and the uncertainty there. >> we've seen so much talk about how it helps the companies to be less reliant on anyone qualcomm shares are trading lower in extended hours because of that, because apple may not need them as much as they thought. ultimately these supply chains are so integrated. it's not like the

qualcomm is down more than 2% in the premarket. >>> new numbers this morning on which tech giant is theop spender when it comes to washington lobbying efforts. cnbc produce errs in washingtond san francisco crunched the numbers to reveal facebook led the field in the second quarter spending for lobbyists with more than 4$4.1 billion that money was spent amid heightened scrutiny on capitol hill around the announcement of its libra currency much more on these findings coming up this morning >>> president trump yesterday agreed at a meeting with the heads of top u.s. technology companies to make "timely decisions on requests to allow u.s. companies to do business with chinese telecom company huawei, currently blacklisted by the u.s. government. even as the ceos requested timely licensing decisions from commerce, the white house said the executives also expressed strong support for national security restrictions on purchases and sales to huawei. >>> when we come back, the latest on the rising mideast tensions and the possible impacted on global oil supplies. we go live to where it all start

and then chipmakers, broad kcom, qualcomm, higher after concessions were made to u.s.ade with huawei remember, we have seen the story before the s&p 500 got a 1% pop the day after g-20 talks in argentina took place back in december of 2018 that rally, as you can see, did not hold s&p 500 losing about 8% that month. and then there is the debate over valuation the s&p 500 has now gained about 18% this year. and already trading over 19 times, trailing earnings, well over a historical average of about 15 times a lot of things to take into account. one sector leading us higher today is energy. that 3% jump in oil prices, we're seeing today, ahead of that opec decision, some headlines on iran helping the energy sector. keep in mind, the s&p 500 energy sector still trading 17% below the 52-week high a number of safe haven related trades, if you look at gold, the japanese yen, the ten-year yield, all sort of unwinding today, even utilities, the only sector in the red as we kick off a new quarter. keep in mind, gold did gain about 8% in the month of june. what to watch for july

the european union has fined chip maker qualcomm $242000000.00 euros for what regulators call predatory pricing between 20092011 the charges relate to the sale of chips at the low cost which the e.u. says was intended to drive a rival out of the market. investor appetite for fin tech innovation just keeps growing the german startup in 26 has made big inroads that inroads in mobile banking and has now become one of the most valuable fin techs in europe take a look. 4 years ago and 26 was little more than an hour without a banking license today the german company is one of the fastest growing banks in europe with more than 3000000 customers already signed up. n 26 is a so-called direct or mobile bank it has no branches and conducts all its business online on like traditional banks it has just announced a fresh round of funding from a host of existing investors and tooting chinese company 10 cent and german insurance giant allianz this values the fin tech at more than 3000000000 euros making it one of the most valuable companies of its kind in europe it is the most valuable german startup

here's qualcomm ceo steve mallinkroft walking toward the white house.t video footage there of them arriving >> miss those red carpet arrivals of ceos going to the white house. >> they would go around the table and introduce themselves this is where the great good suit came from one of my favorites. how will it play out for the sm semiconductors how much wiggle room is there on the issue with huawei? >> well, it's political so it's infinite, isn't it if you stick -- hone to the party like difficult for the trump administration to provide waifers to american companies while at the same time lobbing european allies to ban huawei equipment from their systems if you stay consistent there's not much wiggle room at all. >> so, just to be clear, ed, the administration so far let's review, first blacklisted huawei and then at this g20 truce president trump said we can work with huawei, right american telecom companies can work with huawei but some of the members of the administration including peter navarro said there's still security concerns so it won't be so

they've been in a deal with qualcomm, a troubled deal to license. protect them down the road when they are out of their qualcomm deal. alix: what a lot of companies and were, basically buying the talent. david: the patents and talent, that's right. alix: realogy is surging because they have a partnership with amazon to offer a program that connects a potential homebuyer through the amazon portal to a real estate agent. then you have zillow, redfin shares falling on that fact. what can amazon not disrupt, at the end of the day? [laughter] david: nothing. they just haven't gotten to some of it yet. alix: exactly. third set of companies we are looking at is stanley black & decker and sherwin-williams. for more, brooke sutherland is here, bloomberg opinion columnist. brooke: this is sort of a read on the consumer right now. both companies beat in the second quarter, but did not raise estimates for the full year, which for me is always a bit of a red flag because it signals caution going into the back half of the year. on the sales front, a little bit di

now to some of the other business stories making news the european union has fined chip maker qualcomm 242000000 euros for what regulators call predatory pricing between 20092011 the charges relate to the sale of chips below cost which the e.u. says was intended to drive a rival out of the market. netflix has reported weaker than expected subscriber growth last quarter in total 2700000 new subscribers joined the service worldwide while the number of u.s. subscribers declined slightly analysts blame increased competition in the streaming market from rivals like walt disney and h.b.o. . and boeing based online bank n $26.00 is now germany's highest value startup it's raised $419000000.00 euros in additional funding taking its valuation to 3 and a half 1000000000 euros which is the french capital comes as the company prepares to expand its popular brand of base banking to the united states and brazil. iran is missing out on the rise of digital currencies many people they hope bitcoin could be an antidote to some of the pain caused by the reintroduction of u.s. sanctions but a recent crack

caroline: we have been waiting for years for what they would and out to go after ca after qualcomm fellway. what makes symantec vulnerable to being bought out? reporter: there has been a lot of drama. the ceo has been ousted a few months ago. there had been an accounting investigation and star board volume came on the scene, pressuring and got some board seats. it is a vulnerable time for symantec for a takeover. caroline: we were talking about a t-mobile-sprint deal and regulatory issues, are there going to be [indiscernible] considering broadcom in the past wasn't able to get past qualcomm? liana: before this, they had a singapore headquarters. they are now totally in the u.s. to alleviate that issue. cybersecurity is a national security concern and symantec does work for the u.s. government. the review is something investors will be watching to see how it goes. there to be the e.u. review. no slam dunk for any large deal where there is a national security element. you really have spelled out why you think it is a perfect fit and why it might be good for the business. interesting othe

representatives from microsoft, intel, qualcomm, and more.hat is the latest we know about this meeting? who was there? what was discussed? >> the meeting was called basically to hear a view from a business perspective. we do hear a lot about the huawei fight from the hawks and the administration and on capitol hill who obviously are in favor of a total decoupling of supply chains. this is a chance for them to make their case of wife huawei should -- of why huawei should continue selling. the invitation list was pretty broad in terms of companies that are affected by this. sent aompanies have letter to commerce secretary wilbur ross a couple of weeks ago, making their case in writing, in private meetings at the commerce department. this is basically their second run at it with a broader audience. the commerce secretary was in the meeting but he has heard the case before. watching forl be any headlines. we want to get a lawmakers look now at the case against chinese tech and the alleged threat to u.s. national security. lego --man rubin get reb

. >> and lobbying for huawei restrictions release the ceos of qualcomm, google and intel and other techs make their case directly to the president. futures are higher this morning on the heels of a number of better than expected earnings. three dow components also cross beginning with coke. shares higher after the company beats the street, raises organic revenue guidance and utx beats on the top and bottom lines. mixed bag for travelers. earnings fell short but ref new be beat coke seeing organic revenue five versus the prior four. >> doing such a great job. doing it with coke zero sugar which happens for quite good tasting. doing it with water. he's doing it with those small formats. whimsical. he's doing it with better technology, transforming the company, getting better bang for the buck and doing also, by the way, trying to get more environmental in terms of plastic, which i like. this is a good story it reminds me when coca-cola would churn and just churn and churn and get numbers. the stock deserves to be higher. i think quincy has really in his own very subtle way become a great

qualcomm was a misstep in that they could not get the deal done.nstrated they can buy a software asset and integrate it well. symantec is part of that. if you look at other deals in the space, nuance has been talked about. given the size and complexity, vmware could be interesting, very large. broadcom would have to get to continue to deal. there are options for broadcom. it is clearly a roll up story and needs acquisitions to further its story. taylor: a story we will be following. thank you. doubi news says h.b. in -- said they plan to move some production to avoid tariffs. he did tell us flexibility in the supply chain is helping the company navigate the dynamics. take a listen. >> we have a supply chain that has flexibility globally. we have 25 manufacturing the sotheby's across the globe. -- manufacturing facilities across the globe. i think we have done a nice job balancing the tariff dynamics and we will continue to work our way through it. hopefully the government's will come to an appropriate agreement at the right time. >> what does that

and the european union has fined a chip maker qualcomm a $242000000.00 euros for what regulators call predatory pricing between 20092011 the charges related to the sale of chips at below cost which the e.u. says was intended to drive a rival out of the market. mobility is one of the boss words today people want to get from a to b. fast smoothly and increasingly environmentally friendly only recently electric scooters started to pop up everywhere here in the streets of berlin mingling with cyclists and pedestrians the next big thing could be the iraq eat an electric pedal driven motorcycle. heads turn when this 2 wheeler whizzes by it's too fast for an e.p. like but a motorcycle with pedals. the rocket is the name of this electric motorcycle and it's also its mission it was developed in berlin and production models are set to hit the streets later this year without a throttle. i turn the pedals with my feet that's like the throttle here. but the pedals on connected directly to the rear wheel like on an e.p. . instead hits an electronic unit in the front that measures how fast the pedal

considering broadcom in the past wasn't able to get past qualcomm?na: before this, they had a singapore headquarters. they have now moved totally to the u.s. to alleviate that issue. but cybersecurity is a national security concern and symantec does it do work for the u.s. government. so the review is something investors will be watching to see how it goes. there could also be an e.u. review. no slam dunk for any large deal where there is a national security element. caroline: you really have spelled out why you think it is a perfect fit and why it might be good for the business. interestingly, other analysts or are questioning managements strategic direction here. do you think it is the right direction to be going focused in -- on a cybersecurity? we have seen others do it. >> i think broadcom is focused singularly on capital returns to the shareholders. this was a company that was on the cusp of 50% operating margin, which no other company in the past could approach in the semi conductor land. with the ca deal, they were able to push it closer. now

qualcomm, there is credit suisse, fiat chrysler, eli lilly, and the in the big pharma announce whatoulda talked about merger with its drug unit, off label or off patent deal. that could be announced as early as monday. that is expected to cause the entire field of generic companies to rally. that could bring these three companies alone a lot higher, put them in the spotlight. anticipated move, we get 45% of the company. it is really a boost for the generics. look up the other names because we not only have tech but also food companies and big oil, chevron and exxon at the end of the week, beyond meat, a new ipo that will have its first report. then you have big titans like -- former titans like general electric and kraft heinz. what they have to say about the economic crosscurrents and the trade situation will be of interest to investors as well. focus on one of the current titans, apple. what is expected? su: a lot of analysts are expecting lower profit, flat sales. some are very much focused on what they say will be the services. as apple moves away from its sales of iphones, what it

won't need qualcomm right now, they're leaning on qualcomm for the next 5g migration. >> bottom line,s set up for earnings, or no? >> we are still bullish. the stock purchase is 15 billion. very low multiple, about 15-times earnings. we have to let it work out >> dan, thank you very much. >>> coming up, when we return, two, big hours of squawk" ahead. we're going to get you caught up on the markets and how it can impact your money. >>> later, the business of e-sports with the first fortnite world cup. what lies ahead in online gaming should you tell your kid not to play games i don't know after this weekend. $3 million worth that's happening on "squawk box. back in a moment oh, wow. you two are going to have such a great trip. thanks to you, we will. this is why voya helps reach today's goals... ...all while helping you to and through retirement. can you help with these? we're more of the plan, invest and protect kind of help... voya. helping you to and through retirement. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place

software has been his bet, particularly after the deal with qualcomm failed.s over national security reasons. it was a messy situation, you covered it a lot. but in this case, i think broadcom is being quite savvy in saying to symantec this is really a buyers market in this case. symantec is a company that has been struggling for a long time. they want this premium, $28 is the threshold. whether symantec is worth more or less, for a long time, symantec was trading partly because there was an investigation over finances that ended in the company has to restate finances which is never good. lhere has also been torurmoi in the executive ranks. emily: the ceo left. and trying to mount a competing offer. where has that been? nico: it is unclear. now, the thing symantec wants is more money. it seems a little bit less likely that this competing offer from the former ceo will pass because a company as big as broadcom is not meeting the threshold, then someone cobbling together financing from different places might also be under pressure, particularly if you take on de