the first is siri. what apple'she updates to ios 9 is deeper irnt gration of siri into core and third party apps. this is a material step forward. i think the apple watch could actually serve as a tailwind. they announced over 1 billion requests per week already on siri. i think as the number of queries improve -- >> just quickly tell us where search might fall into apple's money. would have help revenue? earnings? or just mostly a smack to google. >> the with a i we positionay we position the report is from a google standpoint. if you get that google search behavior on to apple. what is the monetization hit as few as fewer queries besides the incremental benefit to apple. is it about really what are the use cases going to be who will capture the most use cases. with the falling share of android to ios and with the potentially losing of the google search deal with apple to yahoo! we think there are risks to the google search story. >> so james, you covered google so i want to get what the google impa kt is going to

just over one month old, the apple watch gets a makeover. and super sizing apple paid -- how the company is expanding its mobile pay reach. all of that ahead on "bloomberg west." first to the lead -- apple's streaming music services product -- is finally here. tim: that place is almost in a billion hands around the world already -- one single app on your iphone. emily: the founder of interscope records jimmy iv there perhaps the most magnetic performance of anything we saw today, unveiling apple music. this service gives access to the 30 million songs stored in the itunes library and a radio station broadcasting 24 hours a day. the subscription costs $9.99 and you can sign up free for a free month trial. apple music has some big name actors including drake who introduced the service on stage but he did not perform. will customers buy in? here with us is brian white of cantor fitzgerald who covers apple and we have been thompson with me and they ceo of eight track dave parker, that caters toward millenial. a shot across the bow for companies l

television audience is not the audience to play to at an event like this. appleupertino, brings engineers up here. these are the developers that will enable apple to make a difference in the battle versus google and others in the coming year. they want those people to feel empowered, excited about developing for apple. so expect apple to take what will look like a victory lap during this keynote saying basically we've won the premium in the smartphone market for this round. and we've seen it. we've talked about it here on "squawk alley" whether you're looking at who is actually paying for apps it's the ios user. if you look at who is paying for tv everywhere streaming, we're looking at the numbers from adobe last week, it's ios users. people who are actually spending money, not just look iing at advertising, not just talking volume, but actually spending money and being discerning not only about the app but the content they're viewing, it's the apple user. apple is going to say that to these developers, to say you want to continue to be on our platforms, be first

apple pay? >> i am optimistic. thehasis on payments from apple and google a couple weeks ago really shows both of these companies looking at a world where advertising can be the main way of making money. whoever controls payments will have the leverage to succeed in the future. overt advertising will diminish. both apple and google realize this is happening. apple is in a better position than global right now in payments. emily: when uxo those thoughts? -- when uxo those thoughts -- w ould you echo those thoughts? ben: with apple pay, you could have a better conversion rate on mobile than the desk top. emily: how much do you see apple pay really adding to the bottom line? brian: is a relatively modest even in the future. i do not think it will have a financial impact. what gets me excited, it brings people into the echoes system and keeps them there. i use it multiple times a day. , they will be moving into the u.k.. they changed passbook, it will be called apple wallet. emily: doesn't microsoft already do that? oh wai

by now, you know the highlight of apple's development conference was the unveiling of apple music. service costs $10 a month and builds on the acquisition of beats electronics. but the idea of music streaming has been around for more than a decade, a fact competitors were quick to point out. the ceo of arguello -- rdo said welcome, seriously to the most important frontiers and digital music revolution began 16 years ago. and spotify's ceo tweeted, "oh, ok" but deleted it. here to talk about it is tim westergren, founder of pandora and david hose, ceo of rhapsody. david let's start with you. this model apple introduced yesterday has to be awfully familiar to you because it is the same one rhapsody has. what do you make of it? how impactful will it be in the digital music landscape? tim: we are happy to have apple join the party we started 13 years ago and we have millions of customers using our product having access to tens of millions of songs from their phone at any time. the great thing about having apple come in and be part of it is that it's going to educate the market that this

>> i think the big news is apple beats. ey made acquisition of this company into the headphone everywhere, but the most important thing they are getting from the acquisition is the technology they need to create a streaming music service that can compete with the likes of spotify, pandora. big focus ofa real this. it is hugely important market. you are spending a lot of time on your iphone or watch or whatever your device is listening to music. apple wants to make the experience more robust for you and the consumer. olivia: i am definitely one of those people that have moved downloading apps. i listen to music on spotify. no one does it anymore. --le gets the majority overwhelming majority of the revenue from hardware devices. music is just a drop in the bucket. why is it so important to them? >> this is their developers conference. this is where thousands of software developers from around the world are coming together. make it easierto for you to create apps for hardware. they will not buy the hardware if there are not coo

let's look at the stories making headlines. apple changed the way people thought music with its itunes. now the company wants a lead role in streaming music. newe unveiled plans for its streaming service for its developers conference at san francisco. apple music will go head-to-head with spotify. on the agenda, a 24 hour worldwide radio station. alix: the greek finance minister says the country can get a deal with creditors in one night if everyone sits down and seriously negotiates. he spoke earlier in berlin. part are ready to play our . to do our homework and stick to , rules that we author with the rest of the europeans and the germans. reforms,ent these greece needs a missing ingredient, hope. alix: the debt burden needs to be linked to growth. scarlet: president obama is calling on greece to make tough political choices. the president speaking at a news conference at the g7 summit in germany. he says greece has to be serious about economic reform because time is running out. that only oura: g7 partners but the imf and other in

but first we start with the news of the day and that would be apple. the company announcing a slew of updates and services at today's worldwide developers conference. let's get straight to cnbc's josh lipton who is live on the ground in san francisco with the latest on this developing story. josh. >> well, today apple creating here the apple music. that's a new service, melissa, which ceo tim cook says is going to be a game changer. it's going to be revolutionary. the open question, though, is apple music different enough from the competition? there's basically going to be three main parts to the service. you're going to have a streaming component, which is curated not just by algorithms but by real music experts hand picked by apple. you have a 24/7 radio service with its own channels and djs and a new feature that's going to connect artists and fans more directly. of course with this, melissa, apple now finds itself going head to head with entrenched rivals, like spotify, for example, which claims 60 million users, 15 million of whom are paying subscr

apple music confirmed by sony music ceo over the weekend is very unusual for an apple partner to spillns. we look at the official word of 1:00 p.m. eastern today from apple ceo tim cook. it will cost a reported $10 a month. apple expected to update its operating system for iphones, ipads and max plus more for your apple watch. apple wants you to organize your entire life threat the project. since the last developers conference up about 40%. today is huge for everybody but investors. according to history, they are basically down after a big event like this. sandra: historically speaking, he said 40% since the last conference. we did something right last time. but hopefully it goes to be good this time. shares up about 17% so far this year. without the g-7 today. president obama in germany for the second day at the summit. what are we looking for out of there? transport leaders discuss a range of issues including the debt crisis. you have european commissioner, the president, sad sad than wanting a laxity that died that time was about to run out. they vowed to keep sanctions in place unt

jennifer is head of the online store at apple. was significant, it was the first time a woman has been the stage at the developer's conference for apple. we do not think about it but apple making a concerted effort to feature its women executives. a move to show the technology industry is not just about men. the customers responding. that is a reflection of what some people are saying. david: back to you. rishaad: up next, chinese consumer prices and we have analysis on the way. ♪ with xfinity from comcast you can manage your account anytime, anywhere on any device. just sign into my account to pay bills, manage service appointments and find answers to your questions. you can even check your connection status on your phone. now it's easier than ever to manage your account. get started at xfinity.com/myaccount rishaad: our top stories. thousands of job cuts. of the potential corporate headquarters in london from hong kong. they will make the announcement later. the second major strategic plan in 2011. hsbc has faced pressures to im

they are relatively late to the game. applen't been a huge part of the digital music world since the introduction of itunes. ,hen we look back historically they led at the way and then the market moves towards streaming at apple took cap and steps in that direction. they do not feel like it was the way to go. steps in that direction. that is where people want to be and apple recognized that. that is the culmination. enoughs nice but is it to get people are satisfied with pandora or spot a spot or other services to switch -- or spotify to switch and i am not sure yet. angie: it is interesting how it is trying to be the digital mtv for the newest generation here. what other interesting insights it did you get from apple? some interesting developments you think perhaps a little bit more exciting than apple music? a numbernell: they had of interesting announcements around ios 9, doing more predictive types of things. one of the apple has been criticized for is the fact that do not have contextual reminders. yourbility to look at ca

the new osx. we've got an apple watch update. and of course we've got the big one, music. apple music. ly happened. >> why are we so glad lance, about the music, and what about this prospect of it being available for android? >> well i think if you're talking about surprises i think the fact that music service is coming to android so quickly is one. the other is having women on the stage at the keynote, which was a big deal for apple since we've never seen that before. but the music service is pretty much what we expected. $9.99 a month. but they also have and this is very interesting, $14.99 a month for a family plan. six members of the family all you can eat music. and of course there's also beats radio, or it's called i'm sorry, beats 1. and that's really kind of how the beats name lives on in software in this 24/7 radio station. >> you know lance, that $14.99 family plan is a good point. i think a lot of people will find value there. just real quick on the el capitan and the watch update. first the software, the el capitan update. how significant is this for the rest of us paying at

unveiling its new music streaming service, called apple music. thevice will debut on june 30th. cost about $10 a month. available in more than 100 countries. apple music will offer personalized playlists that stream over the internet and pull from the massive song library that's on the itunes store. the service will offer a live 24-hour radio station. called beats 1. the response has been tepid. i'm looking at a note from ubs saying everything they did supports the superior user experience that defines apple. do you agree? >> you know, carl, i look at this as an investor and ask myself. would this today with what i know, because i was focused on this yesterday, does this change my mind about leaving the stock or buying more of it? and to me, the whole thing is a giant nothing burger. who cares? even if they owned all the streaming companies with all the features it wouldn't make a difference to their income statement. to me the only reason to even think about this is maybe it keeps more people within their ecosphere and you don't lose it to a spotify

the app for apple watch is free to download from the apple app store.est single automotive shop who don't have enough to replace all of the air bags. >> and they turned to michael finney to find out what you can do. >> the defect in these vehicle can kill or injure others. >> the honda mini-van is potentially deadly. >> it is terrifying. >> theirs is one of those recalled because it is equiped with the tekata air bags. already six deaths are blamed on the shaw rap national. >> we felt leak we were playing russian roulette. he rides every morning to daycare with his dad and the potentially dangerous air bag. >> i felt like i was driving around a with a bomb in the steering column the entire time. it was always in the back of my mind. >> they said they would have to wait until october for a new air bag. but they couldn't possibly drive it all that time. not with their baby in back. >> you just feel so stuck. do we buy another car at this point? >> gina contacted honda pleading for a quicker repair. >> waited on hold for over two hours. >> gina kept callin

if you believe the strategy that says apple is going to take you end to end from the time you wake upto bed. if you count your sleep on your apple watch. end to end, they want to own you. >> what benefit do i get? >> none. >> already you've got a spotify app on your iphone, lots of people are using that, you got pandora, some people use that none of the models seem to be working particularly well. are there music choices just going to be that much better that everybody without the premium model is going to rush over to app snl i don't know. >> but they do have your credit card and that's something that spotify doesn't have to convert the fremium users over to premium users. >> if they're going to amass a bunch of data about you and we are living in a world of accelerating information that will always accelerate and apple, data is everything now. they're going to have a better profile about the things you like and the things they can do realistically, apple had no choice. i think they need to be seriously in the music difference, is it going to be a differentiated or undifferentiated p

so, while alibaba looks to gain favor in the u.s., apple is looking to china. m cook told the chinese language version of "bloomberg businessweek" that his company takes chinese is this taste into account when designing their biggest items -- such as a decision to offer a gold iphone being a nod to chinese consumers loving gold. plus he says he is backing an education program in china that teaches kids about mobile programs, something to remember is that greater china is now the second-biggest market and a -- for apple. next, jack dorsey may need to rethink his day job at square if he wants to be the permanent ceo of twitter. plus, what does taylor swift's message to apple mean for the rest of the industry? matt. -- next. ♪ emily: a story that we are watching, the oracle chairman and ceo having stepped out of that role, feeling questions from analyst and customers, the company announcing 24 new cloud services at an event at coming headquarters in san francisco. they also say that new products are designed to move all the data into the cloud. last week's earnings

the product. you can use your phone or your apple watch to buy things in the store. this is a new business apple has been getting into over the past year. other companies have been there before like paypal, and google, to a a certain extent, but this is apple taking advantage of its scale. hundreds of millions of iphones have been sold. if they can get these customers to use their payment system or their music service, then they have a built in customer say -- base that they can build from. is coveringentry on the apple developers conference outside the mosque army center in san francisco. thank you so much. scarlet: still ahead, content is still king. vimeo rolls out ♪ mark: welcome back to the bloomberg market day. i'm mark crumpton with scarlet fu. scarlet: julie hyman has been amusing us during the commercial break with the markets. julie: let's keep my dance moves off the air. let's look at the market instead. we have the three major averages trading lower. the nasdaq hitting its lows of the session. a three-day losing streak for the major averages. it is interes

abc7 news reporter caught up with tim cook for an interview before the conference. cook said apple needs to do a better job of bringing women into the fold and met with 350 young scholarship winners some of whom including this senior at fremont mission san jose high school have created apps, a chess game, for example and a game called "colors." >> more people you get thinking about something coming from a different point of view you wind up with a better product. >> cook also hopes to expand the technical work first to include more neithers and people with disabilities. currently seven out of 10 apple employ ears men. >> warriors are on the way to cleveland in hopes of coming home with the lead in the nba finals with a nail biting loss last night. matt is at oakland airport. matt? >> the plane took off in the last 45 minutes from oakland international airport. they are looking to bounce back in game three of the nba finals. steph curry was the last on the plane. mvp came off a rough night with only 19 points in the overtime loss to the cavaliers. and clay thompson had a big game la

for is the opportunity apple in the music space? guest: they have been leaders in this music space and as they ownershipe digital sales model to a streaming model. pimm: i wonder if you can comment on what is the price point and why would the apple service have an advantage over spotify or pandora or diesel? guest: i think the advantage apple's going to have in the end will be its scale. it will have a huge amount of marketing money thrown at it. they have partnerships with big names artists. partnership with u2 in the past. you can get all of the access to all of the songs in their library, and you can kind of share songs. it's similar to what beats music has now. ultimately it will be up to apple to convince people to switch from spotify, or more importantly if they will go after the people who have not yet started paying for subscription music service. they want to move over people who do itunes downloads to get them to pay 10 bucks a month. scarlet: adam, there are people behind you, it seems like they are protesting, wearing ma

a lot of discussion about past splits, we passed the anniversary of apple's 7 for 1. "journal" argues that the splits tend to work out in the year that follows. >> it's amazing they work. there's no fundamental reason that they would. it appeals to more of a consumer base. they just signed brad pitt's 30 million movie. >> going out to marriotts. >> i think it's a consumer play to get people to buy the stock in their kind of retirement funds. >> everybody wants someone, guys, to call the top on this name. because it's getting dramatic. jon? >> it is. and i'm looking overall at how excited tech companies are getting about content. we're going to talk a lot more about that. i mean apple has become a content-creating company. something they've tried to avoid for a long time. they've got a radio station now, they're employing deejays at a level they want to avoid. jeff bezos bought the "washington post." tech companies want to use it for their own purposes. netflix has done it in a proactive way with their original content. you wonder if it's getting overly saturated. will

the unlikely winner. we'll tell you how you can profit now. since 2005, apple shares are rallied 12% in the three months after each worldwide developer's conference but we will tell you why this conference could be different. >>> rates hitting their highest level since october on the heels of a huge jobs number. the question is simple -- if we are heading into a period of strong growth what should you be buying and what should you be selling? tim seymour, kick it off. >> well, gold gives you a glimpse into the future. sell gold. gold was down 4% on week that was all about rates. buy germany. i would buy at hedge because i think the euro will weaken up. ewg, there's an hewg by i shares because germany has bounced that you have level multiple times. don't think rates are going to the moon. you know where i've not been thelt guy, he's been largely right but the big move up doesn't mean we're going to 280. i would buy the tlt and play for rates to ease up. that's a short-term trade. >> is this a relative choice, go germany a opposed to stay in u.s. stocks? >> absol

at the end of the month, apple is launching apple music. y $ he nine cents per person, and you can download their songs. they are trying to learn people in and not paying artists for the person -- the first three months. taylor swift says, that is not fair. this not for herself, but because she thinks it is unfair for the people in the music industry. it is not too late to change the policy, she says, and change the minds of those in the industry. be says musicians will gravely affected. provideon't ask us to music for no compensation. she is becoming one of the most powerful women in the world. she was voted that my forms. she is using the power to basically stand up for the other artist and musicians. she is pushing back against a business model apple decided to put forth and impose upon artists. what is this mean for the business model? >> apple is one of the main global retailers for music. but it is still playing catch-up with subscription services, like spotify. this is not the first time taylor swift has done this. she pulled her musi

the watch. what about apple pay? the stock right now is under pressure.hat may change in the course of the next two hours because we've got a lot of information coming out. the stock is alreap

the price point -- you talk about the apple watch, that start at three to $50. ou want the $17,000 one, that has gold ,round the edges, but the $350 that is the bottom. but that is the top price point for the fitbit. you can get the lowest fitbit at about 60 bucks. and fitbit does not have to split the revenue with a retail partner. pimm: there you go. obviously apple is in the same boat there. they are not discounting other. you can buy it online from apple or go to the stores. it shows that people are remaining loyal to fit it and it has a big future after its initial public offering, so people who were wondering whether fitbit was just going to get killed by apple and its watch, at least so far that has not happened. any subliminal persuasion, because it appears folks who were going to get the fitbit product know that before they make the purchase. pimm: right, if you go to the fitbit website, it is pretty obvious you have decided this is what you want. also, it is perhaps a little more disposable in the sense that if it costs $60, it's not the kind of thing y

the stock now? >> yes, for that software aspect of it. we talked about apple at the worldwide developers conference. what runs the apple car? the middle wear? it is blackberry software. to anyway is the crown jewel. that's why you own it, and on the secondary you could get a take over or a strategical -- >> everybody was in that camp. >> a long time ago. >> it was a long time ago. >> pete -- >> had hair? >> wow! >> we came up with similar names, we didn't even talk about it pryor, we try not to, but soda stream, this was a darling in 2013, but that just coincided with everybody getting rid of ca carbonated drinks. they're half a billion dollar market cap right now, but this seems to be going the way of the doodoo bird. >> lumber lick kquidators. >>> their senior vice president ray cotton is no longer with the firm. we reached out and they confirmed to him that again, their chief compliance officer is "no longer with the company." no reason was given. we are trying to get more details on the story. one of the senior officers on the firm, they depart the firm, n

oddest things about the apple watch, the idea that it was going to be less rude to checktch and your phone. matt: has the watch been successful? stephanie: at least when you check your phone you can pretend to say i'm taking notes, but you are really -- with the watch -- matt: do the sales look good? fitbit sales are positively rising. josh: from what we saw from spliced, fit it was ahead of apple sales. some question about whether apple sales are limited by demand or supply. apple said in the past it is having trouble making these. it is much more expensive than the fitbit. matt: great to get you on the show. stephanie: we are now just minutes away from the opening bell. i want to bring in joe weisenthal with the three things you need to be looking at today from a markets perspective. no doubt you will lead with greece. joe: you guys talk enough about greece. stephanie: we talk about the grateful dead, the fitbit greece, puerto rico. joe: last night our night was incredible. down 5% in the morning. up 5% by the end of the day. an extraordinary move. you not see it in a m

now while alibaba looks to gain favor in the u.s., apple is looking to china. ceo tim cook told the chinese language version of hundred business week that his company takes chinese consumer tastes into account when designing its biggest ticket items. the decision to offer a gold iphone was a not too chinese can -- nod to chinese consumers loving gold. and it is expanding 50% by the end of the year. something to remember. greater china is apples second-biggest market making up 29% of sales last quarter. jack dorsey may need to rethink his day job at square. taylor swift tells apple how it will treat musicians in its new streaming music service. what it means for the rest of the industry next. ♪ emily: a story where watching. oracle chair larry ellison is fielding questions today. announcing more than 24 new cloud services at an event at company headquarters south of san francisco. oracle says new products are designed to move all data into its cloud. last week's earnings miss, cost chairs to fall the most in two years. we will have updates on what ellison says to

also spotify the other big rival. so is apple's push into music streaming a real threat for the likes of spotify and pandora or has it left all of this a little too late. get in touch with us worldwide@cnbc.com or via twitter. our personal handles are on the screen as well. >> your take is its a bit late isn't it? >> i don't think it's a game changer but i also have to say i think this is the first time we're seeing beats, the mega acquisition it made we're now trying to see the fruits of the labor come to market here. >> we'll have to watch and see if this works. i'm going to download it and see what's happening but i'm not saying that i'm representative of people around the world. >> you're not a music streaming consumer. >> how do you listen to music? you download? >> yeah but now i can do it and stick to the ecosystem i like. >> yeah. people m peopleare saying the same thing. >> stay tune to cnbc later, u.s. squawk box will be discussing greece and the outlook for the italian economy with italy's finance minister pier padoan at

coming up, iphones that feel like the apple watch. us, google adding fuel to the fire in a heated antitrust case. and meet the company betting you will use virtual reality to plan your next vacation. an investigation underway after a spacex rocket loaded in midair sunday morning. it was meant to restock depleted international space station with vital resources, but it is the latest in a series of high-profile failures. here is a nasa official. >> this is a tough day. it is not where i wanted to be on a sunday afternoon, but might is -- spaceflight is not easy. we started with the orbital loss last fall and had to progress several months ago and now the -- the spacex loss. it is difficult to fly. corey: -- cory: joining us to discuss the accident, lori garver, former deputy administrator for nasa. when you look at this accident, we know that space travel is difficult, but we have seen now three consecutive different explosions. pino in three different companies. should we connect the dots? lori: the connection is that it is rocket scien

lines around the building to the mad dash to fill the seats it is all part of the anticipation for the apple developers conference. >> the best way to catch up with what is new. >> reporter: no new gadgets but there were announcements. apple music was the big one. they brought out the star power to promote it. drake taking the stage. >> truly amazing to be part of something that i believe in. >> reporter: apple music includes a stream service, 24 hour live radio station and a way to connect via social media. >> gives a lot of new artists an opportunity get heard. >> reporter: streaming music is more popular than downloading songs on itune. >> they want to bolster that with streaming service. they need to compete with spotify. >> outside some of the average users we talked to seemed more impressed with the simple things. >> [ inaudible question ] >> battery life. >> i don't use siri and i don't upgrade. >> reporter: they said new software will extend battery life by three hours. >> i would look into, like, buying products in the future. >> reporter: in order a stream music or do anything else

. >>> the apple watch on track to be the most successful product debut.e it went on sale in april 7 million watches are ordered, 5 million are expected to be delivered by the end of the quarter, beating the apple's debut of the ipod iphone and ipad. >>> hundreds of souvenirs commemorating the pope's upcoming visit to soon be on sale. and officials of the world meeting of families with a sneak peak of the items available. and a philadelphia-based company is the provider of the merchandise. the t-shirts and hats and rosaries and crosses and china and shirts all going on sale online starting later this month. >>> now don't eat fish caught in flooded streets or sewers. that is not a reach, is it? the warning that officials in newark, new jersey are sending out to residents. people are catching carp with nets and umbrellas and bare hands. and it is unclear how the expose you're to things outside of their habitat will affect them. no, this is not a lake or ocean or pond. >> it is a road. >> it is a street. >> and it would be tempted, you see a fish swimming by

her blog to apple work. theill pay rights holders an undisclosed sum on a purse dream basis. don't you love apple? dagen: love apple? that is barked. lauren: they work hard to be so friendly. taylor swift certainly making a point for not only herself. her letter was signed love taylor. that explains it. dagen: if you want to reward the artists come you buy their music, don't streaming. just saying it. let's move on to your health. one health giant has turned on a big takeover offer ahead of a key supreme court ruling on obamacare. that could come down later this morning. nicole, what is happening. nicole: and committed $47.5 million offer to acquire its rival trend cigna. get them offer to pay $184 per share for each share. that's an 18% premium on the price that closed on friday. it is not clear talks are in bed. now set to 184 a share. cigna says the deal under the right circumstances would provide benefits to consumers,.does come investors in both companies. this is all coming ahead of the highly anticipated

. >>> and the apple watch becoming the company's most popular new product.o and double scan live tracking rain heading through in the overnight hours. details on what to expect for the morning commute and the cool air moving in in the accuweather forecast. >>> and the phillies meeting their fans one-on-one tonight for a very good cause. and ducis rodgers with that story when "action news" continues. well, sir. after some serious consideration i'd like to put in my 15-year notice. you're quitting!? technically retiring, sir. with a little help from my state farm agent i plan to retire in 15 years. wow! you're totally blindsiding me here. who's gonna manage your accounts? this is a devastating blow i was not prepared for. well, i'm gonna finish packing my things. 15 years will really sneak up on you. jennifer with do your exit interview and adam made you a cake. red velvet. oh, thank you. i made this. take charge of your retirement. talk to a state farm agent today. 14 irresistible flavors. one for the mood. one for the moment. each one can make every day more

how much impact has the apple watch had on the category? >> it's had an impact. it's the third party applications that are cool and we'll get to see them at some point. when they did the original iphone, there were no apps on it. now you have everything because people can build things on top of it. whether you are twitter, facebook or the apple watch, that ability to become more than just a product, but a platform upon which people can build cool things that's what makes something take off. >> i wonder how much they'll be able to untether the watch from the phone. that seems to be the real hurdle. so much of the functionality for the watch depends on the phone, which seems to defeat the purpose of it to some extent. >> absolutely. that was a surprise that the watch didn't allow you to do more while the device is disconnected from the phone. i think we are going to see those improvements with the next generation. there will be a new wi-fi chip so that the phone will do more things like deliver my mail or updates to my wrist when my phone isn't nearby. will have vi

the company started six everyone years ago. but apple'sch does the same thing not to matter, but is it sustainable dz. >> you won't buy it at 30 wouldn't buy it at the offering price of 20. is that right? >> i would be very careful jumping on board a stock that has a lot of momentum built into it. i would want to wait and let the market digest the ipo, let a few days and weeks pass. see how the market is. >> i'm going to show this at you. i think this is the first pure play in wearables. i don't think there's another pure play hike fitbit industry. isn't it nice to get the first' first'. >> i don't understand that points, but i would like to buy apple buy facebook. to buy the wearable it has to be multi-faceted. fit bit tells you your heart rate, do you sleep at night, you could come in with $100 and have a whole lot more powerful wearable devices. maria: thanks for coming in and answer some of the points that we heard from adam. >> done say no more. basically add dal telling that fit bit would be extraordinary if it were two. they had 177

what's the bottom line for investors? he says even if apple does match spotify it would add less than 1% to revenue for 2016. no material financial impact at least in the near to intermediate term. a new service like this does have a real benefit strategically. upgrades the user experience and it means more importantly and more broadly more of those users stay on that ios platform. >> it's interesting, josh i'm a spotify user and i pay i $9.95 a month which is the same pies point and i have a room for one of those in my life. probably not two. certainly not three and i subscribe to pandora as well. does this suggest that there's trouble in the music download world or that apple is moving away from that pay per cut pay per album download model? >> you're absolutely spot on. it's true that apple had no choice but to make this transition. remember last year download revenues fell about 9% streaming popped 30%. that's what the growth is and that's why ceo tim cook moving hard and fast into this new model. >> josh thank you so much. in response to

its way to the apple store. ling some models at the retail stores coming up this month. that's about two months after it went on sale online. and half of the 100 retailers in the united states will accept apple pay. many are skeptical about the payment system and apple's prediction might be a bit too rosy. >>> a fast moving thunderstorm dumped heavy rain in the denver area overnight. there was ponding on streets and under passes. the storms came less than a day after 4 feet of hail buried parts of the city. >>> as people in texas wait for the flood waters to recede. they are not waiting to help stranded animals. people are going by boat to rescue animals left behind when residents were evacuated. >>> and watch as a tornado near reno throws debris around. it's an ef1 and moved through the area friday evening and brought with it heavy rain 245 caused flooding in the -- that caused flooding in the area. no one was hurt. >>> here's a look at what's coming up next on cbs this morning saturday. >> shoot the moon is mor

they are extended families. >> i expect updates to the i.o.s.9 and also possibly a if you apple tv. eal excited. >> the keynote address is when he announced new products this morning and he is expected to unveil a new music streaming service and a new apple tv and will likely be a surprise. apple usually keeps one thing under wraps until the speech. the attendees camped out all night so they could get a good seat at the speech and it should be worth it because apple is known for treating the audience like rockstars. now, google will reveal their self driving cars' act report and at&t no longer offers two year contracts on iphone through apple online here is the money report. >> good morning, a lower start but, mostly kind of steady kicking off a brand new week on wall street. google will report robo car wrecks after calls for more transparency and will launch a website devoted to the self driving cars and publish positively reports that include accident information. >> at&t for longer offering subsidized devices when you buy your phone through apple. the option to boy the subjects di

lined up outside the developers that apple on, to go produce apps, to be featured on all new products iphones iwatches, et cetera, amazing to me. >> to buy the stiff now lining up to make it, too. >> it is nuts. >> as far as the screaming i am a pandora user. >> so -- >> i love pandora i haven't made the switch like you did i am still paying for it. the one with the ads -- it is. >> just because -- in terms of doing it. i know but so this could potentially be a big challenger, but hey at the end of the day this conference is all about are they going to hint at what their next big product is going to be from a consumer standpoint, that is what everybody wants to know otherwise this is a -- a big show for the developers to get them excited, to develop more apps; right? >> i am not a big user of any of the stuff i have my iphone i use pandora have iphone i don't get crazy line up about line up for any of these things. >> call me skeptic i would never wear one of those watches. >> i don't think i would ever. >> do you need it? >>

the apple watch will finally be making its way to the apple store. apple says it will start selling some models at retail stores this month. comes about two months after that watch went on sale on line. apple also says most orders placed through may will ship within the next couple of weeks. >> barbie's getting comfortable. mattel just launched its barbie fashion line, and for the first time ever, barbie is wearing black. of course, we know her feet in the past have been engineered to look lick they're in permanent four-inch heals. so, in the fashion line, barbie ankles are adjustable. i'll just say women everywhere are thanking mattel. definitely more comfortable are flats. >> poor barbie. for how many decades has she been stuck in those five-instill it owes. >> fifty-six years erika. needs a break. >> thanks, jill. >> but who's counting. >> right. other news this morning 1 million canceled, that's how a business in wilt being barre sign new line of pope candles ahead of the pontiff's advice knit philadelphia in september. they have two in the line,

one of the most closely watched apple analysts weighs in. plus why fast food stocks could hold the key to "fast money." we're grilling up the second half playbook on everything from wendy's to mcdonald's. all that and more ahead on "fast." >>> twitter flying high on another dose of takeover talk just one day before ceo dick costolo gets ready to exit the c suite. suntrust manager has been bob pack has been calling for potential bidders ever since the news on costolo broke. he joins us now. bob, great to have you with us. what's the rumor today and would you say that it has a chance of actually happening? >> yeah. so the stock is up 6% today on rumors that facebook was going to take it over for about 44, $45 a share. all equity deal. from a small shop no one ever heard of. we don't think there's much truth to the rumor. there's a couple reasons why. one, if you look at what zuckerberg has done historically it's been very forward-thinking companies like instagram, what's app when it was still small, even oculus looking really long term. right n

is it about to compete with the apple watch? or it is a flash in the pan. don't miss my take. then it's hot, cold communist, capitalist and it's putting a number of stocks on a wild roller coaster. i have moves in china, plus it makes everything from car seat commercial air conditioning systems and it's spinning off a huge business i suggested in get rich carefully. then johnson controls puts you in the driver's seat. i've got the ceo, stick with cramer. >> send jim an e-mail to mad money @cnbc.com or give us a call. miss something? head to madmoney.cnbc.com. hey, what are you doing? you said you were going to find out about plenti, the new rewards program. i did. in fact, i'm earning plenti points right now. but you're not doing anything right now. lily? he's right. sign up, and you could earn plenti points just for being a wireless customer. in the meantime, i just kick back and watch the points roll in. where did you get those noodles? at&t cafeteria. you mean the break room... at&t - the only wireless carrier to be a part of plenti now when you add a new phone line to your