she snapped up red hat for 44 billion in cash.he kept on ceo jim white hearst who gave me this hat, he's joined ibm senior management team you know i like the deal what about the criticism remedi overpaid ibm wasn't the only bidder it filed a acquisition statement. they mentioned three interested parties. if you read me in the lines, there were three cloud giants. microsoft with azure great quarter tonight. alphabet, okay that's google wide services. amazon web services. while that 63% premium sounds like a hefty price tag, considering there were other potential bidders, they paid what they had to pay to get the job done it's a little misleading it seems like ibm paid through the nose for red hat if you measure where the price tag was before the announcement. at the time, $116 stock, ibm sold out 190 we've been supporting it for years when it was in the 50s, 60, 70s, 80s red hat, even a year before, the price seems a lot more reasonable in june of last year the stock was at $177. after getting clobbered for a suboptimal quarter if

the red hat leadership team, including the ceo, will remain within red hat.hey will be able to talk to their own clients rather than through ibm. in order toat maintain red hat's independence, this integration will work seamlessly. emily: we have heard ginni rometty talk about the hyper cloud before. how is what ibm is trying to do different than what amazon web googles, microsoft, and do with their clouds? olivia: they all provide different public cloud networks that have particular kinds of strengths. example,strength, for is its infrastructure services, or salesforce's cloud's strength is its customer management platform. you see companies buying and using these clouds for different reasons. what ibm is attempting to do is become the glue that will stick together or connect all of those different clouds onto one platform. you may be a company that needs to use salesforce for a particular reason and amazon for another reason. that means you may end up with up to 15 different cloud providers that all operate independently, and you have no way to bring them a

the red hat leadership team including jim whitehurst the ceo will remain within red hat and they willle to talk to their own clients rather than through ibm. they are hoping that in order to maintain red hat's independence, that this integration will be a -- will really work seamlessly. emily: we heard ginni rometty use these words "hybrid cloud" before, in fact talking about it for the last several years as they have tried to navigate the transition. how is ibm different from what microsoft and amazon and what they do in their clouds? olivia: amazon, google, they all provide different public cloud networks that have particular strengths. like amazon's strength for example is its infrastructure services. or salesforce cloud streams as a customer relations and management platform. you see companies that are kind of buying into these services and using these clouds for different types of reasons. and what ibm is attempting to do is to become the glue that will stick together or connect all those different clouds onto one platform. so you may be a company that needs to use salesforce for

red hat leadership team including jim, will remain within red hat.y will be able to talk to their own clients rather than through ibm. they are hoping that in order to maintain red hat's independence, the integration will really work seamlessly. usey: we have heard ginni the words hybrid cloud before, in fact talking about it for the last several years as they have tried to navigate the transition. froms this different microsoft, amazon? providethey all different public cloud networks that have particular strengths. amazon strength is infrastructure services or salesforce, cloud strengths, customer relations management platform. you see companies that are buying into the services and using clouds for different reasons. what ibm is attempting to do is to become the glue that will stick together or connect all those different clouds onto one platform. you may be a company that needs to use salesforce for a particular reason and amazon for another reason. that means you may end up with up to 15 different cloud providers, all operating independently in d

the red hat leadership team including the ceo will remain within red hat.hey hope that enable to maintain red hat's independence, this integration will work seamlessly. ginni: we have heard rometty talk about the hyper cloud before. how is what ibm is trying to do different from what amazon web services, microsoft, google do? olivia: they all provide different public cloud networks with particular strengths. iszon's strength infrastructure services. cloud's strength is its customer management platform . when you see companies buying and using these clouds for different reason. ibm is trying to become the glue that will stick together or connect all of those different clouds onto one platform. you may be a company that has to use salesforce for a particular reason. up to 15 different cloud providers that all operate independently, and you have no way to bring them all together. theis hoping it can become connective tissue that aligns all of these clouds under 154 -- under one platform. the strategic move to become partners with their former competitors is wh

there were people that felt red hat maintained an entrepreneur culture. i followed you on the business is it able to be maintained within the large confines of a great american company worldwide company of course that has a reputation but not necessarily known as entrepreneur as red hat is >> this is one of the things that's worked well over the last eight months as we've gotten to know each other better everyone at ibm i've worked with understands red hat is a capabilities based company and that capability is tied up in culture. our ability to go from open source project to project to project and be a leading provider against those is tied up in the culture and our ability to work in those open source communities so what we've talked about, this isn't two cultures coming together, this is two cultures working together to create something unique that we can't before and so throughout all of our interactions, i think there is a real understanding that the diversity of the two perspectives and could tours ul backgrounds allows us to do more and both sides a

ibm with red hat can get a lot of high-margin stuff into different segments.ht now, they are getting rid of legacy stuff in their order segments, and that is where you saw 100 basis points off the margin improvement. caroline: what are you expecting to hear from the cfo, hearing him saying we will see improvements to the numbers as we get into the second half? how much improvement is the market baking in and what optimism do you want to hear from management? >> they are getting rid of the low-margin businesses, which is dragging down the total growth rate. and as that is completed, you will see improvement and growth rate. once we get the new benefit of the red hat integration, maybe six months from now, that is when we really start to get benefits on the top line. romaine: this will be critical for them. the global technology business is down 6.7% in this quarter, so a lot is riding on red hat. are they a little late to the party to make it work? >> it will take some years to figure that out, but at the same time the cloud movement, a lot of the legacy and od

itself, and/or accelerate the products that ibm else along side of red hat going forward. >> hey, go, we love having you it does feel, though, like you want to downgrade something, you're just not ready to do it yet. can we expect some downgrades from, when you talk about high tolerance for no earnings, i mean, are you going to change your rating on tesla in the coming weeks >> you know, look, i'm really not comfortable talking about specific ratings as a group, my stocks have generally underperformed year-to-date now, in some cases, earnings have come down in the case of tesla, so that's warranted in many other cases, earnings haven't changed all that much. so on a relative basis, if valuations go down, i'm, you know, directionally more positive and we've publicly stated, we have a market perform rating on dell, you know, the stock is down from over 70 to closer to 50 in the last couple of months. it's still not quite at our threshold and target price, but to me that actually makes it more attractive. it's a stock whose earnings have actually gone up a little bit, but on a relati

ibm finished its merger of red hat.pokem and red hat ceo with david westin about the two companies. >> it's really important not just to the people that work at red hat but to our commercial success. we are a capability driven company. our capability around open source allows us to be involved in these communities and have durable success, whether lennox, inux or open containers. it is integral to our success. ibm recognizes that. it is about bringing our two cultures together to create unique value, not integrate to create one culture. vonnie: at the same time, if they are truly independent, how did you get two plus two equals five? remember, we have been open source 20 years along with red hat. when jim says both believe it's important for the right reasons. what red hat has done is built that ecosystem, and in open source, with its terms and conditions and ecosystem. that issay preserve it, what we are preserving, but we will help them extend their reach into 175 countries. on the other hand, the synergy with our pro

ibm better with red hat.with red hat because they have a long-term relationship and also long-term relationship with ibm. what i'm saying is i don't want people to be so excited that they pay up for ibm. that would be a mistake. >> it also it has to do with the change in technology in terms of 5g and the edge and the lack of latency that you can have so much more information held at the edge of the network that can then be sent back and forth because it -- there is no latency anymore with 5g. takes a millisecond. >> you won't see cisco cut out of this. >> no. no large opportunity for a lot of the providers and vendors. meanwhile, people say we're not going to be spending enough on 5g, not going to be there as much as they say, question the spectrum that verizon has right now in some ways and how well it propagates >> ibm is verizon, they have t-mobile, they have at&t there we go. >> good stuff, jim let's get industrial production, rick santelli. >> our june read on industrial production, a little light we're

to achieve isas to keep those red hat employees in place.w in press releases earlier today that they plan to keep red hat as an independent business unit within ibm. that means its leadership team will remain in place. it will remain at its headquarters in rally, raleigh, north carolina. it will have its own sales unit, contract units and terms of conditions. the question remains if this will be enough to keep red hat employees within the wider ibm family. paul: how is what ibm is trying to do here different from what amazon, microsoft and google are doing with their clouds? emily: we heard them talk about the hybrid cloud for a long time but can they execute? olivia: for me to try to understand what it means, i was interested to see what kind of services a lot of the other competitors provide. you've got startup companies that use public cloud platforms like amazon or microsoft. what ibm is attempting to do -- paul: ok. bloomberg news technology reporter olivia carville, we will have to leave it there. that is uber technology global link. t

would you tell me what's so special about red hat, and what, not red hat, and what you're contributing to ibm? what's so special? >> so we are the only fully open source software company and we've shown an ability whether it was with linux, with open stack, with kubernetti's and containers for technology after technology to be able to get involved and make those mission critical and ready for the enterprise, and so bringing that capability to ibm, we can help bring a whole new vector of innovation that's happening in open source and make that enterprise grade and combined with the capabilities of ibm, the industry vertical expertise, the business process knowledge, the application development capabilities, we can accelerate our customer's businesses together in a way that we can't by ourselves but together we really can. stuart: when i think of the technology of america, american technology companies, i don't see ibm in a leadership role. i see microsoft, i see google, i see facebook, i see amazon, i see et cetera et cetera et cetera. i don't see ibm right up there with the movers and

people of red hat are critically important, and so is the ecosystem.a lot of technology in red hat. this is why they are a very profitable company. that last mile for an enterprise, what you are surprised -- providing is support and service in packaging. that is technology and that is critical. nobody puts that in an enterprise without those features. we could run a lot the cases where they used open source without that and had problems. enterprises have be sure it is .ecure and has been controlled this is actually, to me, not only a technology play, talent play, as well as ecosystem play, and platform play. if i judge this by our client reception, 100 percent from clients, whether delta airlines to morgan stanley. they see their future, the hybrid cloud, and they want that freedom of choice, as to whether to address a competitive issue or environment. this is what we have provided to them uniquely. david: that was my interview with red hat and ibm. finally, we remember h ross perot. the texas billionaire and two-time independent presidential candidate

red hat merged with ibm last week i was concerned about the impact on vmware.hey were actually surprisingly quite positive about vmware because red hat seems to like you. >> listen, ibm is a great partner of vmware. we love their services business. ibm cloud has 2,000 plus customers so we're going to partner really well with the team we compete with a small part of red hat's business in containers but 80% of red hat's business is l linux, open chat, shift and j boss is not doing well but the future of containers is a small part of the business we can walk and chew gum we can partner with ibm and compete with the small part of red hat. we want a big tent in vmware, compete with as few people as possible >> i love that, you are a man of your word. where are we with chai that? do i ha china you can tell me jim, things are not where we want them to be >> first off, we have to abide by the laws of the land, so if the u.s. federal government asks us that we're not supposed to do business with certain companies we'll abide by that. >> okay. >> we have certain chinese

red hat gives them the possibility to sell a number of services.hould've done a long while ago. alix: how quickly can ibm realize the benefits of this? >> it will take about 12 months or slow unless we get into a macro slowdown. this should help their topline growth next year and going into 2021 that will be good for them in terms of getting the topline growth up. alix: it expands its offering and takes a chunk been cloud. what about competition. where is it stacked up in terms of microsoft and amazon? >> ibm was competing a lot with these bankers before. with red hat, they are neutral and will help people move wherever they want to move. as long as they keep that independence alive, they will help customers move some to amazon, some to microsoft, and some to google and in that case they will generate more money by generating software and services . will not just be ibm cloud, it will be moving services applause any cloud. as someone is buying services in the cloud, red hat is there. >> yes, and that is key for them to make use of that independence

red hat c.e.o. jim whitehurst joining the i.b.m. senior management team under steve ginni rometty i.b.m. hopes to use the acquisition to make inroads in the highly lucrative college space opting to put together multiple platforms rather than trying to head to head with sector leaders like amazon microsoft and google. a record setting 2600000 vehicles into the u.s. from mexico in 20 teen amounting to 15 percent market share the latest figures show mexico come sharing an even greater share of the u.s. auto market in 1st half of 2019 from january to june of this year mexico countered 16.3 percent of the u.s. auto market that works out to $1370000.00 vehicles coming up across the border according to the major mexican auto trade group for more on this and all of those we are joined by the car coach lauren fix welcome back lauren. thank you for having me now lorin this surge of mexican auto exports to the u.s. in the 1st half of this year happened of course despite the very high profile terror threat from

better life. >>> futures are weak, we already talked to ibm, red hat and pepsi.e'll get to this cisco m&a, talked about what kudlow said this morning, powell as well, 3m downgrade. we're back in a minute >>> welcome back time for mad dash. a deal of the morning, big premium, cisco buying acasia communications they design and manufacture interconnect technologies that allow web scale companies, service providers and data center operators to meet the fast growing consumer demands for data i don't know what that means. >> under 5g, incredibly fast pieces of data that can go in and out. cisco, by the way, acacia is a big supplier to them, zte and huawei this ensures cisco will get the source of product that it needs. cisco quietly is building a 5g infrastructure away from that we call the core base station and i'm beginning to think that cisco is going to be maybe the jewel of 5g and we start talking more about sprint and t-mo, verizon, you'll talk about the service providers being good customers again. >> 5g came up in our conversation, asked that question of ginnie

>> i will start for the red hat component.l is to be an even better partner with those clouds are they are free partners. i'll software -- our software runs on the clouds. they will continue to be great partners for us. as we are capable of moving many more workloads onto our software platform, that is more workload those clouds can go and address and run. my conversations with the major clouds have been positive because they see this as an opportunity to get more workloads out of data centers. >> that is an important reason to do this. our clients want us to be able to take our platform and run it everywhere. these are partners and we cooperate for are in competition. david: you've ramped up the ibm percentage of your revenue from the plow dramatically -- from the cloud dramatically. where will this get you to? >> as you think about the clients moving their work, 80% of their more -- their work will move to the hybrid crowd. our levity transcends the public cloud, the private cloud, canales platforms on other clouds included

we've been at open source for 20 years along with red hat. it is important for the right reasons. hat has done is built that ecosystem within its unique conditions and its ecosystem. when we say preserve it, that is what we are preserving, but we are going to help them extend their reach. on the other hand, the synergy with i begin -- with ibm and our current products, you will see a lot of announcements this summer. they will work the best on the red hat platform, which is number one around the world. think of the word synergy, which is different than maintaining independence at the same time. on one hand, i take jim's platforms to new countries, on the other side, ibm runs the best on it. we really at the end of the day, we have the only multi-cloud platform out there. it is great synergy between the two, and we do things to work better with each platform. >> i think that is important to emphasize. we are working to build the best hybrid cloud platform, but no one buys a hybrid cloud platform to look at it. you buy it to build or move appli

people are an all guysing red hats to a swastika. how about it, america should see who they are. >> sandra: we're running out of time. you skipped the oversight hearing yesterday. elijah cummings said he will hold you in contempt of congress. do you plan to honor that? >> this is the latest example of harassment and embarrassment trying to harass and embarrass people closest to the president. the chairman and everyone knows there is a longstanding bipartisan precedent both parties have invoked that you claim immunity for the president's senior advisors. i qualify as one. this is about me going on tv and stating facts. joe biden and bernie sanders are old, white, male, career politicians. joe biden got elected to the senate 49 years ago. that qualifies as a career politician. i would be happy to testify. i have nothing to hide. i have done nothing wrong. they couldn't get me through the office of special counsel bob mueller. they have the poor man's office of special counsel. $16 million boondoggle that is not independent. that guy li

plus ibm closes its $34 billion deal with red hat.n with the ceo's of both companies on the second-largest tech deal ever. plus you will hear from the social network's global chief diversity officer. she tells us how facebook plans

ibm says the acquisition of red hat will help it do more work in the cloud.crosoft in the cloud infrastructure business. france has announced the introduction of a range of green taxes on flights from its airports, to reduce the environmental impact of air travel. the taxes will come into force next year. funds raised — about $200 million — will go to improve alternative french transport, including local trains. shares in a number of european airlines fell on the news. james dyson, the british billionaire and inventor of the bagless vacuum cleaner, has purchased the most expensive apartment in singapore, where his company plans to build an electric car. the three—storey "super penthouse" at the top of singapore's tallest building was reportedly sold for $54.2 million. not bad if you've got the cash! karishma vaswani is looking at this story. you're not in the penthouse, we should be clear! a very different outlook from the bbc bureau! no where near the figures it is thought james dyson paid for the super penthouse. it was called a bungalow in the sky when it

remember, melissa, on august 2nd ibm will provide updated guidance reflecting the contribution of red hatback to you. >> thank you, josh josh lipton in san francisco where do you stand on ibm, mark? >> i would be selling this thing, repositioning the money into either microsoft or amazon or salesforce. i think if you want to be in the cloud there's a better way to do it than by owning ibm. it is a dinosaur it has been in a down trend since 2012 it hasn't done anything. management over promises, under delivers so it is one i'm staying away from. >> i'm counting my winnings from the would you rather i mean we sold it short at the beginning of the show, it is down. >> people are selling into the strength in after hours. >> exactly bk is going home. >> microsoft is set to report earnings tomorrow. one option trader seeing pain ahead. mike khouw is in san francisco with the details hey, mike. >> yeah, looking at the pictures i feel like i could almost reach out and touch josh we must be close to one another. looking at microsoft, we are seeing an implied move of 3 1/2 percent kind of in line w

and red hat -- maybe red hat is the cavalry. is it custer, david?s i think the searchers is the best of all those movies >> they had some revenue growth for a brief period in '18. now it's abated again and it's negative people thought they were going to outpace the legacy. >> the technical group -- the group that does steering, just not doing that well. but i don't think it's where every man dead or alive has to do his part. i think when jim whitehurst comes in, people are going to be surprised positively i don't think she's ever slept a night. she works every single night >> i think she joined us briefly on the closing bell yesterday. >> did she use a lot of visine she's amazing. she's an engine. >> we have an opening bell a few moments from now going to have an update for you on sprint/t-mobile, doj, dish. you know it. we'll give youhat tin the faber report stay with us to a single defining moment... ...when a plan stops being a plan and gets set into motion. today's merrill can help you get there with the people, tools, and personalized advice to

. >> the red hat deal just closed days ago explain to me how one plus one equals three in this how doou get more business than the business ibm was getting already and the business red hat was getting already when you're going on that sales call? >> it's a really interesting question, i think. because what we're seeing with our clients is they've started to move things into the cloud, but they haven't really moved sort of the hearts and lungs, the mission critical apps. and that's what we do for them today. so in order to enable that mission-critical move, they really needed an environment and needed to know they could move into an open environment so they were not locked into a cloud so the red hat combination enables that environment to exist, so now they can be more comfortable in moving mission critical apps. so in chapter two of the cloud, in the next step of the cloud journey for all of our clients will be about taking those mission critical apps and moving them to the cloud. that's why the combination is so powerful, because it enables a new environment, it enables them to thin

the stock has been a business of a confused state they closed the red hat deal, a bit of controversyhether they overpaid for it, but if you can reiteration and sash cash flow is coming in as planned, there's a lot of it, and that's basically just a cushion >> shareholders would rather see them overpay for red hat than keep doing buybacks and no answers for the future i think that's reflected in the share price. it's not like other old-tech companies that learned a new dance. i think people have a newfound respect for people >> turn cash into a business. >> act like you're going to be around in ten years. >> when i sees lie the services backlog and more than 30% in cloud engagement before you get the red hat numbers factored in, that certainly sounds pretty strong, too. >> the margin was 37.4%. >>> guys, thank you. josh brown, paul hickey joining us >> thanks. >>> up next ibm shares are higher we just told you about that. find out if you should be buying or selling stock on these results, straight ahead. >> later we'll have more on the netflix big miss as rivals, of course, continue t

. >> ibm has closed its purchase of red hat, finalizing the world's second-largest technology deal everting the company up for a path to compete with top software suppliers and cloud. >> what red hat has done is build that ecosystem, in open source with its unique conditions. on one hand, when we say preserve it, that is what we are preserving, but we will help them extend their reach into 175 countries. >> we are working to build the best hybrid cloud platform, but no one does it to look at it. you buy it to build applications or move applications. coming together, it allows us to dramatically accelerate our business, and i think dramatically accelerate our clients businesses, which of course creates value throughout that chain. >> fresh off a bullish sales and profit forecast for the sales, cisco isn't standing still. cisco, whose equipment makes up the backbone of the internet and corporate networks, announced it will buy a casein, valued at $2.6 billion, which makes products for cloud infrastructure operators and communication service providers. >> if you are cisco, you don't want t

azure is big cloud you bring in red hat, red hat is ecumenical, they can work with anybody.dominant player it comes to 5g, as josh mentioned, they have it, 5g is at&t, ibm. look, these are all important. what they hoe is there is a lot of business to go around and i know that jim whitehurst -- his philosophy is, listen, we're to be neutral. we'll send business to ibm, we'll send business to microsoft, send business to amazon web services. >> new business created from the data that is going to be created as a result of 5g, i guess. >> 5g, if we did nothing but talk about -- i love to do the 5g show. i would. just kind of a -- >> got to be able to demonstrate, yeah, yeah. >> download a movie in four seconds, can't do that right now. >> no. 5g is -- >> so much more than that. >> it is >> the internet of things and -- >> that's why it is so important. >> and autonomous vehicles, that's a ways in the future. >> we're so concerned that china that huawei has the better 5g product. >> and also enables the surveillance state in a way we're not at all -- >> you got the zeitgeist, zeit

the police notes and surveillance video shows the brothers apparently purchasing a red hat along withms like a thin, white rope to be used during the alleged hoax. also the new video shows smollett walking in the middle of the street in the same, white sweater he was later seen wearing when the police arrived. he might have been smoking on that walk according to the police notes. as you can see on the video, it was such a frigid night in chicago, hardly anyone else in sight other than what appears to be smollett and the brothers. in this piece of new video from a barrage appears to show smollett in a white sweater calm with a cell phone in his hand. a very short while later what appears to be the brothers walking down the same sidewalk. the attorney for the brotherst tells us that they were likely early and kind of circling the area waiting for smollett to return.er jussie smollett and his team maintained he was the true victim of a hate crime and had nothing to do with a hoax. >> raymond: thank you, matt. we turn from an alleged attack to an actual one captured on video this week. la

billion deal to buy red hat yesterday.s of t-mobile are up by almost 4%. >>> still to come here on "worldwide exchange," a big bet and a bold call on crypto from two pioneers in the space. >>> plus, straight to voicemail. the one wireless provider that says it's happening up on the annoying robo calls. thank goodness we're back in two minutes. ♪ when you have nausea, heartburn, ♪ ♪ indigestion, upset stomach, diarrhea ♪ try new pepto liquicaps for fast relief and ultra-coating. ♪ nausea, heartburn, indigestion, upset stomach, diarrhea ♪ get powerful relief with new pepto bismol liquicaps. >>> welcome back to "worldwide exchange." if you're just waking up, you can see futures are pointing to a lower open we've improved in the last 20 minutes or so. dow jones industrials pointing to a lower open by 23 points s&p 500 down by 4 and the nasdaq lower by 11.5 points at this point we have a number of hours to go until that opening bell sounds. >>> new developments on billionaire jeffrey epstein who is facing sex trafficking charge

rosalind: ibm and red hat seal one of the biggest tech deals ever. >> we will help extend their reach into 175 countries. rosalind: plus, kkr's henry mcvey says recession may be coming, but investors should not fear the worst. >> if i were to quote shakespeare, it is sound and fury signifying nothing. rosalind: it is all straight ahead on "bloomberg best." hello and welcome. i am rosalind chin, and this is "bloomberg best," your weekly review of the most important business news, analysis, and interviews from bloomberg television around the world. let's start with a day-by-day look at the top headlines. deutsche bank announced a dramatic overhaul of its global operations in the struggling lender's latest attempt at a turnaround. david: a banking bombshell. deutsche bank announced a fundamental change in its business model, planning to cut 20% of its workforce -- 18,000 people -- and taking restructuring costs to 3 billion euros in the second quarter, shutting down its equity sales and trading business. guy: the losses are already starting. the ceo was in london to brief reporters and s

red hat are the notes in the words, the musical composition, the teal hats, those of the sound recording. the performance is captured by microphone to magnetic paper to an audio file in the recording studio. when you think through life and think it's really helpful to think through these copyright separately because licensing and compensation works different from each one. money from composition goes to sally in the publisher rat. in most cases, a company that wants to use music cost to arrange a license for the composition and sound recorder. they had to make sure both sally and ricky get paid. there is one big exception, sometimes a single person will play multiple roles. for exhibit, sally may decide really talented, i'm going to choose to record my own song in a max of comfortable publishing it and releasing it commercially my cell. so she will act as her own publisher and record label. so she would wear all four of these hats but in that case it is still helpful in understanding how the licensing works to think through each one of the revenue streams differently. and to think throug

plus, ibm closes its $34 billion deal with red hat.rsation with the ceos of both companies on the second-largest tech deal ever. plus, you will hear from the social network

red hat closed its deal with ibm today.you see the shares up about 2.6% obviously a big question is will the sprint/t-mobile deal go through. we are supposed to hear about that later in the week what do you think, dan >> i think it should go through. when you think of what they have between verizon and at&t, and the way they're stacking up assets, these are two wireless assets coming together you need a much stronger number three player in the market and it will make it a more competitive environment. >> earlier this year when there was news of this deal -- it happened on this show i believe and t-mobile went down, traded down to the low 60s, we had a conversation this is the wrong reaction we talked about john ledger sort of being the man and what he has done with that company over the last few years now you wake up today and this stock is either side of $75, probably higher now. people were knocking on valuation. when you compare it to its peers it is ridiculous but they probably deserve it. >> i'm melissa lee you're watc

the sidewalk, chicago police say this video is the brothers and in it you can see the flash of a red hat. police don't know if and surveillance videos is one of the brothers with a red brimmed hat along with other items like -- to be used to reveal his toques. the new video shows jussie smollett in the middle of the street in the same weights what he was later seen wearing when police arrived. might have been smoking. as you can see a video, a frigid night in chicago, no one else inside other than what appears to be jussie smollett and the brothers. and a piece of video shows jussie smollett in the white sweater again, cell phone in hand and then a very short while later what also appears to be the osuntairio brothers on the same sidewalk. the attorney for the brothers said they arrived early, waiting for jussie smollett to return. >> what is noteworthy is this video shows key players at the scene of the crime around the time it happened. jussie smollett and his legal team obtain jussie smollett is the true victim of a hate crime that had nothing to do with a hoax. shannon: illegal immig

vanished, according to her husband, a week ago in the mojave desert wearing only a black bikini and a red hat with a beer in hand. he says he stopped to take a picture. and when he looked for his wife, she was gone. >> and she rounded the corner. and i lost sight of her. >> reporter: he believes someone kidnapped her. >> and we always tell each other before we go to bed at night, how much we love each other. so who ever has her, please release her. no questions asked. >> reporter: but he swears he had nothing to do with his wife ice disappearance. police wont comment on if they have any suspects in this case. they say they are treating this as a missing persons investigation, david. >> what was with the apollo 11's. and the man climbing down to get out of a fire. t er me to it in a ment. the fiber. month after month, and i still have belly pain and recurring constipation. so i asked my doctor what else i could do, and i said yesss to linzess. linzess treats adults with ibs with constipation or chronic constipation. linzess is not a laxative, it works differently. it helps relieve belly pain a

earnings jumped estimates thanks to a $34 million acquisition of red hat.ng in the club market or more than a decade, ibm is taking his future on a strategy that would allow it to offer services for private and public cloud. startle is reported to trial and part production. they say one of the key contractors will test the process with the latest wireless earphones in the coming weeks. the report also says apple has written to other components asking for their support. >> let's get you a quick check of how markets are trading. we are seeing the nikkei fall 9/10 of 1%. in fact, when it comes to asian stocks, we are seeing the regional benchmark fall and in japan, every sector is in the red, energy something the most and we are seeing the cost yield down 3/10 of 1%, down for a second consecutive session. numberstacking the job out of australia and had a few minor supporters as well. posting revenue surged nearly 17%. this is bloomberg. ♪ >> this is daybreak asia. there are renewed fears that attackers continue to infiltrate u.s. targets. microsoft says it has

the deal with red hat close last week. the company reported earnings yesterday.n't say how he expects red hat to help with cloud computing. ibm says sales fell for the third straight quarter. that is your bloomberg business flash. nejra: thank you. let's get back to netflix. we are joined by bloomberg intelligence technology and media analyst. matt, great to have you with us. netflix, the second quarter tends to not be as good as the others. is this just a blip or the start of a long-term trend? matt: certainly, most analysts are agreeing with the company that it is a blip. blip. is some to come in at 2.7 million against the forecast of 5 million squibbers was a big miss. they expect them to have a better handle on what was going on in the business. the u.s. is a concern because of the u.s. actually shrank marginally. and you are seeing a combination of factors. it was a good q1. so it shows you that when you are working on a business model where customers can churn off on a monthly basis, you need to be on your game all the time in terms of pricing and content,