first, to the top story. apple shares are falling after reporting an underwhelming forecast for the holiday period. earnings suggest a weaker than xpected demand for their price year new iphones. in terms of the fourth quarter, sales rose to $62.9 billion in came at $2.91 per share. joining us now in boston is our nalyst and in -- and our correspondent in san francisco. it seems to be a mixed bag. we had the current quarter beat on the top and bottom, but the forecast was underwhelming. what is your take? >> i think we had a great hird-quarter in terms of the fourth fiscal, but we are a little built disappointed on the guidance here. it looks to be perhaps indicating the emerging market or china slowdowns. frankly, it is flat considering the product mix they have, it is a flat forecast with zero growth in the iphone. elina: a big change of focus on the number of iphones but the average selling price -- iphone sold, but the average selling price was positive. how much further can they juice the price on the same con

>> once we again -- genuinely get through the apple figures, the important thing hear apple explain whyis little lighter than what wall street previously expected. that is usually unsatisfying conversation i mean i don't think they will say much that would be helpful. i would answer the question, there is no big tech, right? google's problems, facebook's problems, twitter's problems are different from amazon's problems and netflix's problems. that is my take on trying to analyze this together. connell: it is the right take. probably the only take, lance in many ways, because we lump all the companies together. here you have apple, talking a about selling a product, selling an iphone or ipad, they won't have to deal with next year the same issues facebook has to deal with. >> certainly not. the whole business model is different. they're selling advertising, not interested in your data by the way. apple will make a point of that over and over again but even in apple's business you see a sort of a shift. they sell a ton of products, iphone is very important but facebook doesn't have someth

in the next hour, apple misses the company. -- apple misses.nesrice year failed to spark excitement? plus, google walk out. protests against sexual misconduct. we will disc

in the next hour, apple misses the company. -- apple misses. at iphonesrice year failed to spark excitement? plus, google walk out. protests against sexual misconduct. we will discuss google's reaction to its reports of coverups of multiple claims of executives. and spotify reveals plans to boost spending to drive growth. wall street is dancing to a different beat. shares slump surrounding the revenue forecast. first, to the top story. apple shares are falling after reporting an underwhelming forecast for the holiday period. earnings suggest a weaker than expected demand for their price year new iphones. in terms of the fourth quarter, sales rose to $62.9 billion in profit came in at two bond $91 -- $2.91 per share. joining us now in boston is our --lyst and in it seems to be a mixed bag. we had the current quarter beat on the top and bottom, but the forecast was underwhelming. what is your take? >> i think we had a great thed-quarter in terms of fourth fiscal the guidance here little bit. it looks to be perhaps indicating the emerging market .

the chlorreason is this. for years appleated over trying to get investors at looking at the iphone unit number they have done that and ripped the band aid off it's going to take a few quarters for investors to get comfortable. they are in a penalty box as investors get comfortable but it's the right thing longer time. >> what's the quarter grade from. >> you doesn't change at b plus. ufrmt when you rip off the band aid it sticks stings and we have to wade through that. >> thanks, gene. gene munster of loop ventures. they're not giving the data starting in the fourth quarter how are you feeling as a apple shareholder. >> not good. not happy with that. i can't read into it oh it's all good could be neutral could be or it could be bad. i just think they didn't handle it well and neshd have told us earlier. >> let's say we open up lower 7% here what does that do to tech >> yeah. >> is this as detrimental as the amazon lowering. >> i don't think the lowering the maga complex i don't think it's particularly impressive to be frank

has appeal to the supreme court and apple's main argument is that the most. the most appropriate plaintiff here are the app developers the app developers are the ones that pay the thirty percent commission fee and they should be bringing the case if there is a case to be brought that they are the direct purchasers of these services and that the consumers are not now this may be some form over substance you know apple is relying on this agency relationship that it has with these app developers and you know the app developers control the cost of the apps but apple is simply distributing it to the consumers now taking a look at it you know for a perspective of the consumer the consumer is making a direct purchase through apple they pull out their i phone they're downloading the app and there you have it they're the direct purchaser so their argument is from the consumer. point that this direct purchaser world that has existed for you know almost fifty years doesn't really apply in this instance because they are the direct purchaser hey steve what do you make of

emily: i have a chart showing the rise of apple as well as the --l of apple and the rice the rise of microsoft. in terms of what apple is doing badly, what is microsoft doing well? mark: they have turned the company around. the company has transitioned from a software company to a software services company where they are trying to get their applications on as many devices as possible. you can buy an ipad and fully load it with microsoft apps. you can buy an android phone and microsoft it with apps. you can't fill one out with apple apps. that is the big difference. microsoft works on every platform. google works on every platform, whereas apple is glued to its own hardware and microsoft is clearly winning for itself on that approach whereas apple to the last few years has been winning on its approach. there is room for both, but that is why microsoft has been successful lately. their infrastructure is around services. amazon, not far behind them. do we see these 4 companies trading as a group closer to the top and will its not be clear who has the title? going forward, will we see be

raising its prices through the app store. appleconsumers don't have that kind of standing because consumers are purchasing apps directly from app existings and antitrust law says indirect purchasers don't have the standing to collect those kinds of damages. but consumer says apple is 30% commission off app purchases and it is artificially raising those prices. of course we should be able to collect damages. a price in theory that wouldn't be problematic, or could this throw into doubt, depending on where this evolves too, and i know there are multiple steps, this is just one thing, where it could throw into doubt the business model overall of the app store? naomi: the ruling in this case could have much further ranging consequences for any company that operates in that marketplace. whether it is facebook, ebay, amazon, that is why you saw other associations piping in, saying we actually agree with apple in this case. on the flipside, you saw states that had already adjusted their antitrust laws to allow indirect purchasers to colle

the. company's fault a success is dragging da wall street apple says drop five percent y. get wiping more than forty billion dollars off the tech giant's market. and more than two hundred communities across north america submitted big box amazon thinks new york city and northern virginia for its second have cost us known as h q two. this is the business i'm to have out as welcome. apple shares times five percent in the u.s. dragging other tech shares down all over the world today suppliers of mobile phone the globe said that the largest customer widely taken to be apple asked them to materially reduce shipments investors now fear that the popular i phone is not selling as well as in the past apple is already under pressure to post a disappointing earnings this month but then apple said that it would no longer reported sales numbers for its flagship smartphone in the bestest criticize the decision fearing a lack of transparency in the company's books. go straight to our markets first one and done a cope in front of. forty billion dollars market value is that syria is all jus

the stock has been in meltdown mode, down 18% from the high nearing a bear market. apple lost 20 billion in market cap as worries over shipment and demand have questioning on the trillion dollar valuation. as the stock closes below the 200 day moving average is there more pain ahead for the giant? this guy was supposed to be the defensive tech stock in the market. >> the a week or so ago it went up to the smart board and the power pitch on apple and it turned out -- firps it look like a genius. >> you pitched it as a short to be honest i thought you imprisoned -- dsh kudoss to you nice job. >> more pain ahead means another $7 down to 185 it's pain ahead if 185 is not a big deal, the stock is fine here i understand trillion dollar valuation got on the radar screen and they are not giving guidance and hardware and what they are selling. that could be deemed a negative. but i don't think apple changed from two weeks ago prior to that announcement where it is now it makes sense here. >> the difference is we have seen some people, a lot of the suppliers say, listen, things wil

to the top story. applehares were hit hard after trump implied he might include iphone in the tariffs. tim cook is spending the day with ivanka trump touring schools. this provides an extended conversation with the president's daughter and senior advisor before trump holds a key meeting with xi jinping in but with our rights -- in but authorities -- buenos ares. our next guest has a bayreuth redone apple on $220 and with us from -- -- our next guest has a buy apple.for tom, let's start with you. you are watching china very carefully saying it is the biggest single threat to shares of apple. how seriously are you taking this threat for president trump? >> i think today, you have to assume everything out of china will be tariffs. i think on the assumption, you have to think about two has -- about who has pricing power. if you look at apple and take the least expensive new iphone, the xr, is more expensive than the apple a. -- apple 8. i think apple has the ability to better withstand tariffs than their competi

the money. and happily. suddenly applerket luxury good, a luxury good people are very keen to be seen within the streets. 12 months ago i remember the conversation is being £1000 for a phone, remember the conversation is being £1000 fora phone, i'm never spending that and now we're happily spending that and now we're happily spending 20% more. it's the cult following, the strength of brand people are proud to brandish, but goldman sachs highlighting weakness in china. the issue with china—us trade, that could impact apple? in china. the issue with china—us trade, that could impact apple7m could, that's the cloud on the horizon for them. at the moment apple and its peers aren't being attacked in the trade war, they're almost getting a bye—bye as that escalates and so long as that continues, you're going to be reasonably happy with apple but that's a threat because the market, as you said earlier, is huge for them there. -- bye. we will have to leave it there and thanks for coming in to give us an analysis on apple and their

that really leaves you with apple and amazon. the valuation on apple is probably the most compelling for all of the stocks followed up by facebook. i do want to ask about the broader markets. not just for u.s. markets but globally. we saw a lot of pressure on our markets. there is no a safe haven. it usually if the stock market is under pressure they can go to treasuries they can find safe haven they were not able to do that in the month of october. does that signal to you that me with a nine year bull is coming to an end. they are all moving in lockstep. i think we see the volatility ratchet up. it's been a great nine-year run. and markets go up and down and that's why we enjoy the ride so much. the google's ceo has a message and for the workers that plan to stage a walkout. the employees well have the support of google if they wish to walk out. google is under fire that accusations that they covered up claims of sexual harassment. just a few moments ago starbucks released a new starbucks design. there is a bunch. i think they look

the spdr and others. including motorcyclist and apple. it's encouraging people are saying i want to be back in the market we are seeing a little we didn't see a huge spike in volatility last tuesday we were at 23 vix today when we were off 160 we were off 120 and finished around the 19 level, somewhere in there. it tells me there is still volatility, yes, extreme moves intraday but the interesting thing today there were buyers when we were down. >> we're all constructive what's going on, which means the opposite is the danger here. if you come out of the g20 with absolutely no deal and raising tariffs, then all of a sudden the fed says we're not done, the kbhee is ripping we are raising. >> from the federal -- >> i don't think they are doing it. >> what we heard today, the fed basically they don't want to get politicized. >> we will hear powell tomorrow. >> we didn't want to be put in a corner but we are. >> you think they are going to hold. >> i think raising no matter what >> then they go back to the whole idea of we're a data dependent,

emily: i have a chart here in my tv library showing the rise of apple as well as the fall in apple and the rise in microsoft. you know, aside from what apple might be doing badly what is microsoft doing well? >> you know, the company has really been turned around since taking over from steve baltimorer a few years ago. the company has transitioned from a software company to a software and services company where they are trying to get their applications on as many devices as possible. you can buy an ipad now and fully looled it with microsoft apps. buy an android phone now and fully load it with microsoft apps whereas if you bought an android device or microsoft surface even you cannot fill it out with apple services and apple apps. that is the big difference between the two companies. microsoft works on every platform. google for its part works on every platform. whereas apple is very much glued to its own hardware and microsoft is clearly winning for itself on that approach whereas apple for the last few years has been winning on its approach too. i think there is room for both. that'

plus, how far did the apple really fall from the tree? top analys

and the company's fall by success is dragging down wall street apple shares dropped five percent by think more than forty billion dollars of the tech giants market value. and thirty percent of the world market for electric car batteries that's the biggest goal set by germany's economy minister today backed up by one billion euros of taxpayer money. this is eat up your business on as welcome today is decision day for italy which is about to hit an e.u. set deadline for redrafting its budget brussels rejected the first plan due to its heavy deficit spending today the international monetary fund joined in the criticism it sees its only his budget shortfall rising of the next three years well above rome's own projections it says italy needs to put to rest any concern about public death sustainability which recently has resurfaced the ongoing conflict is a big concern because italy is not just any economy it's the euro zone's third largest whether it's mean machines from ferrari or muscle roxy or fashion labels like armani gucci and dalton combine a breath. sounds like these stands for italy's

employee, employee number one, employed by the company, an apple shareholder. what do you make of what's been going on in the stock lately and how closely do you watch >> i do not watch it at all, period i don't want to live the life of day trading, always being concerned this is up, this is down i have a philosophy which is happiness. you're always frowning if you're worried how something will work out. i mean, apple was doing extremely well, the first company past a trillion. i don't know if they're the first or second company in the world right now. maybe the stock is down. i don't know i don't care i never did anything for the value of stock and the value of a company and the value of money. i did it to create great computers for the world, and i wanted to reach people and you have to reach them through a company. >> when people suggest, and there are some who do suggest, that the company's best days are behind it or the stock's best days are behind it from a growth standpoint, what do you say to that >> i've heard it before. forever and ever a

we are going to start with the world's most valuable company — apple. oday the tech titan will revealjust how much money it's made in the last three months. a strong set of numbers would not only boost the business itself, but the whole sector and markets too. let's take a look at some of the numbers — they're mind boggling. apple is valued at over a trillion dollars. 12 zeros after its name. only 16 countries in the world are bigger than apple. so it's no wonder that apple makes up 4% of america's biggest stock index, and over 10% of the us tech index. we've heard from some of its its peers — amazon, google and facebook — already. it was a mixed bag of results — and it led to very choppy trading on financial markets last month. apple's results will almost certainly swing the markets one way or another. what might we hear? well worth watching will be the performance in china. goldman sachs predicts a fall by as much as 15%. it has to keep re—inventing products to keep drumming up new demand. just last week apple launched its latest range of computers and

the week. boeing and apple combined shaving more than 100 points off the dow. today, we are down 378 right now. that's a 1.5% decline. shares of apple are down. the reports about production of all three new iphone models being cut, and we will start there, then get into trade as the hour goes on, and whether the iphone production cuts may be a sign of issues, wider issues, with the consumer. john lonski is here today and ben phillips also here in studio. welcome, guys. john, let's get your 30,000 foot view, first of all, on the economy and whether this apple story is more than just an apple story. what do you think? >> the economy is growing. however, it's growing at a slower pace and moreover with apple, with housing and with auto sales, we now see the consumer is resisting significant price increases. connell: it's more than just apple. >> i think it is, definitely. we are finding out right now some manifestation of what's called the containment of consumer inflation expectation. connell: that sounds like a complicated way of saying -- >> the fed has said this

the quarter. good morning >> good morning. applelines, but investors worrying about light guidance for next quarter and a change in the reporting structure. apple saying they will no longer report unit sales for iphones, ipads and this is a little bit you go to your market, push your card up to t cart up to the cashier and he or she says how many units do you have in there? it doesn't matter a lot how many units are in there in terms of the overall value of what's in the cart >> so analysts are saying apple is trying to position itself as a services company, not just a hardware seller. remember, iphones alone still make up 60% of apple's revenue apple reporting it sold 46.9 million iphones last quarter, slightly below expectations. the average selling price is $793, that's compared to $794 last quarter revenue beating estimates, 62.9 billion. revenue guidance was light for the crucial holiday sales quarter coming in slightly below expectations, revenues of 89 billion to $93 billion citing headwinds from foreign exchange, emerging ma

the bad news just keeps piling on for apple. r of the key suppliers for iphone components have reduced revenue estimates for the current quarter. the latest is amf. apple shares have had the longest losing streak in six months. how alarming is this? surprisingly, it is not alarming. chain when there is these tend not to be good indicators. the reason is that apple already gave their guidance on november 1. two weeks after, we are hearing the supply-chain cuts. hearing from the suppliers that you mention, those comments are already reflected in apple's guidance. this should not be anything new. my history of trying to figure -- every year going into a cycle, apple tells its suppliers it can produce more than it will have orders for. every year, they cut orders coming into this. bit,ares have come back a but in general how confident are you that the latest lineup of iphones has been a hit or is it not the question to be asking anymore? i am in the camp that that is the right question to ask. can they grow the base of iphones in the

. >>> and all-star panel to talk about the volatile month of october, apple, earnings report and look ahead into 2019. susan li has the big headlines impact everything from wall street to main street. susan? reporter: thanks, maria. november couldn't come fast enough for wall street. the markets were slammed over concerns about slowing growth, trade and rising rates. the results was that all three indices posted worse octobers in a decade. the dow shedding over 1300 points. the tech-heavy nasdaq losing over 9% and the s&p lost 7% of value for the month. strong earnings helping investors recoup some of the losses after a bruising month as all three major indices finish in the green. another month of strong jobs growth, ending 250,000 nonfarm jobs in the month of october as the jobless rate remains unchanged at 3.7%. the labor participation the number of americans available for work, the percentage of the total population was up slightly. >>> in earnings, a shaky week for apple. the tech giant beating on the top and the bottom lines this week. stocks tumbled after a drop in sales volume

a strong performance for those potential apple suppliers and the semiconductor chain. >>> apple fell as much as 7% in extended trade taking the stock briefly below its trillion dollar market cap. disappointing guidance and a change in recording ovreporting overshadowed the results did i not say people are concerned about the implications for iphone sales because they want to take away a bedrock for the analysts, how many phones and ipads have been sold >> it's worrying on the surface, but the key thing for apple is they sell high-priced premium products those have a limited market share. because apple has been so successful in selling those devices, they're at the point where there's little of againic growth left for them so them not reporting unit sales from now on is not particularly surprising to me because there's not a lot of good news that apple would ever be able to tell for iphone sales >> are the analysts being spoiled like me when you take sugar away and things, i have a tantrum. they used this as a bed rook for their analysis to be fair, all the analysts have been buyers of

reported earnings so the solution that apple seems to be thinking about is less transparency and opel diversifying and moving away from the flagship product i phone and roll the service business for example i think the trick here would be to become less dependent on i phone revenue and this is turning into an urgent matter because now supply is like lament some are saying a big client has asked to reduce shipments laments of this not mention apple by name but they did say that its guidance is due to a request from one of our largest customer. service months before us in new york so he can keep. germany has him on one billion euros to support an alliance of companies looking to produce bunch resells for electric cars now the measure has announced fine economy minister paid to outsmart the design to reduce the dependence of german call makers on asian resupplies says europe should aim to produce a third of world wide battery supplies by twenty thirty. the future of the automobile sector is electric a message that is finally hitting home in germany the

emily: this is "bloomberg technology" in the next hour, volatility remains the main headline with apple leading the way. where we stand in the markets now, we break down tech's role in the slump. paid $750 million to fund elon musk's solar factory but it looks more like an empty walmart with idle machinery and employees who feel like the stepchildren. the guy who ran moonshot project for the out of ceo has launched what he hopes to be the apple store for doctors offices. first, to the top story. tech volatility is the new normal. the selloff in momentum stocks continue with the latest slow coming from renewed concern that demand for the apple iphone has slowed. apple has seen a 20% plunge from its trillion dollar high and the other stocks are following suit. -- pitifulk picture is luke kawa. walk us through wrote -- walk us through the reversal. and centereen front focusing on tech's role and it has been playing the starring role, but one thing interesting happened during tuesday's this big reversal, shares of companies like nvidia, square, facebook, opened very much in the red. at one

lauren: nor do the apple concerns. trade market and of course trade war does bring inflation but talking about the inflation that we are seeing in paychecks, getting a 3% year over year growth rate for earnings, that's psychological barrier that we would have past. isn't it good news for the economy? do you think that the fed might try not to be behind curve and try to get ahead of it and if they they do hike interest rates too fast to contain wage growth, they might hurt any expansion that we have seen. >> that's the problem, there's a yin and the yang of it and labor is the most, the largest line items for companies to weigh, labor costs, the concern is there, companies might be force today begin to lay off employees and, indeed, early yesterday morning we got the challenger information and was up 153,000 over last year, it's kind of surprising to see these figures given the strength of underlying company. lauren: i know. >> you have to start wonder if companies are getting jetery about making profits. >> in some way

apple. we continue to see tech lead the way lower. it is not just apple anymore. rse it is suppliers, last heard hinting at what we heard from the wall street journal. you are seeing's -- you're seeing tech at large not able to keep pace with the s&p 500 as it has been rebounding. vonnie: what is causing it? we have known about the supply issues for a while. what has adobe lower? sarah: there are a lot of different reasons being floated. obviously you have the idea of smartphone demand. you're still dealing with the trade for -- with a trade war between the u.s. and china. we had comments from vice president mike pence saying the u.s. is not in a rush to back down. they will not until china comes to the front with good concessions. at the same time dealing with rising interest rates. different reasons that play. it is not anyone. it is just a conglomeration of many reasons that different investors have to contend with. vonnie: how much of a drop could we see in the nasdaq or the nasdaq 100 the four becomes a self-fulfilling prophecy and the drop leads to a further

and now the apple is big dog the dow is the big dog apple falling into bear market territory. this put fear in the hearts of investors? a look at why new york and virginia won the coveted amazon hq2 and the reaction from a number of cities that ended up as big loseers in that competition. plus, oil bouncing back from its longest losing streak ever is this the turning point, or is there more pain to come? and snap get

karen finerman tonight on fast it's the apple avalanche. there is trouble ahead cat claws back paige shares of the industrials giant soaring 8% this year but the chart master says don't trust the dead cat bounce but we start off with the trade war whiplash after three days of bliss without tropic triple digits in a dramatic day on the street after every headline on trade moved the market let's go to the man moving the markets today. eamon javers covering the action out of the white house. >> dwas a whiled one all sorts of messages from the white house and sources familiar with the white house and including mixed messages here from larry kudlow, the head of the national economic council and the man he works for president trump. here is larry kudlow suggesting they might not close to a deal and the president suggesting they might be. here is what he said. >> we are doing a normal, routine run threw of things we put together and normal preparation okay there is no mass movement. there is no huge thing we are not on the cusp of a deal. >> we hav

emily: we are seeing company specific stories in the middle of the broader page. apple with concerns about production cuts, facebook with concerns about mismanagement, push back against amazon and hq 2. how much of this has to do with the broader theme versus specific stories? luke: everything. some is getting hit worse than others. two depicted, i would say it is a lot like a barbell strategy. what is getting hit most is the -- names, you're saying that your fanged heavyweights on one end and even worse are the recently ipo stocks and the ipl u.s. equity etf's. it is the newbies and more established heavyweights bearing the brunt of the pain. when you kind of scratch below the surface and look at both realized and implied correlations on the nasdaq 100 constituents, you see we're kind of out of the throws or panic days of the selloff. one would hope or expect if you are bullish on tech stocks. those implied correlations have kind of come in a bit which is assigned that investors are starting to distinguish a little more company by company on the fundamentals. on the ot

this year, the apple watch actually had huge interest. guess is that we're going to see a very large amount of apple watch series 4 sold but i also believe that the iphone xr, the entry level iphone apple has available, the one that comes in a bunch of different colors, that one is going to be a big sale because it is a premium phone at an entry level price. so i believe that the iphone x-r is the phone for most people and that word is going around. there's tech bloggers that are saying the same thing. so the average consumer when they're thinking about buying that new phone for their significant other, i think we will be looking at the x-r. liz: that one is less than $800, correct? >> $750. that's correct. yeah. which is still high, but we are talking about a high quality entry level phone here. so you might scoff at $750 but what apple did, they took the 10s and 10s max and made it more affordable. you are getting the same features, the same hardware. the only difference is the display is made with different technology so it's slightly l

the apple watch with the ekg in it. apple is still at the front of consumer devices globally.hat will continue to pay off in the macro. the stock day in and day out is not my expertise, but i feel in gut this is an overreaction. emily: overall we have seen it faang stocks take a beating over the past couple of weeks. do we see any signs of that changing now that we are through the midterms? n: these stocks will not be too impacted by the midterms. if there is a move towards privacy and data regulation, that separate thing. i think you will see some analysts come in and see if they can find some bargains. i talked to some semi conductor analysts who think they see some really good values following the big drop in october and going into november. the fact that there is slowing iphone demand, apple is such a big player in the technology ecosystem that this is going to be felt broadly. david, you are talking about the future of technology here. te iphone is a huge part of transformationech's -- technologies transformation because it enables some of that. iphone is the catalytic de

the consumer, apple, or the suppliers. the suppliers are already losing money on apple because they squeeze them so much. apple puts multiple suppliers against each other to get the best prices. from that standpoint, they will mitigate the 10% tariffs if those come into effect so, but i do not think it matters. iphone is not selling as well as expected. we saw four apple suppliers making components for the company lower the revenue estimates for the current quarter all during the same week, all citing a major consumer electronics company. that is pretty alarming. this is a bad new story for apple and i do not see it getting better in the short term. brad: tom, is the market misinterpreting the news from the suppliers? things, going into apple reporting the september quarter, they indicated weakness in emerging markets but not china. in brazil, russia, india and turkey. i think they were trying to adjust expectations to begin with when they reported that quarter. the other thing we are overlooking is one of the reasons for

the apple iphone. head of earnings japan downdown and 9.5%. 50% of revenue comes from apple itself, it is one to watch. also looking at the automakers as well in the region. after sources telling bloomberg the white house is circulating a draft report on whether to impose tariffs on auto imports due to national security concerns. we did see the carmakers fall off at 2.5%. this is mike hence, the u.s. vice president arriving in asia speaking to pry minister shinzo abe and ripping japan and saying u.s. companies are unfairly treated in japan to compete. not exactly helping the trade discussion in japan. manus. thank you. let's get a first word news update. >> tensions between the u.s. and longtime ally saudi arabia are rising after president trump slams the kingdom's proposal to curb oil production year. should notthat happen and prices should be lower by some supply, he posted the message hours after saudi arabia said opec and its allies should reverse -- reverse half the increase that they made this yea

but the real underlying question is who gets to sue apple, and is at any time plaintiff or the government you see other outside of apple, potential ramifications separate from whether it's class or something else. >> whoever wins, if apple wins this case it becomes harder to sue a full class of companies who are kind of -- you kind of transact with but kind of not. >> example >> let's say amazon. you buy stuff on amazon. the theory is amazon is a monopoly when you buy on the third-party market are you buying from amazon or from a third company uber for example, are you dealing with the driver or uber. it opens up these questions. if apple wins it makes it easier for those companies. >> if apple loses what companies to keep an eye on. >> if apple loses, i think life returns to normal. but if apple wins it's a big victory for everyone who can point to someone else. like uber, airbnb. >> that's fascinating. thanks we're watching for campbell's re-open. as faber said a few moments ago coming to an agreement with third point, adding two members to the board i think we have the resumption of tr

to look at is the way apple has progressed through the selloff. ple was down only a little bit back in october. fang stocksf october had sold off, apple was only down a little bit and that was holding on. apple has always traded at a lower p/e. it's a little different now apple is down like the rest of them. it's down like 25% from its high. andp/eare selling it off at apple's like 12 or 13 and they expect about 10% growth. people don't want to buy it. the news was not about apple and now it is more about them but the fact that people are selling close to its growth rate suggests the momentum has moved out of the tech stocks. i was going to bring up the hedge fund question. it's not just the faang stocks but adobe and salesforce are down as well. journal storyt that profits selling, did apple over order? why does it have to curb its orders customer >> i am more of a macro looking at the u.s. stock market. -- apple always follows these trends. you get news from the suppliers but often the sales end up being better than the reports. i've always thoug

the apple watch has not taken off yet. ons to be concerned, but there are also reasons for optimism in the future long-term. a 0.96ple has correlation to the wider market, meaning if apple goes down, the wider market goes down and vice versa. is that correlation justified? mark: absolutely. if you look at how many companies rely on apple, even the wireless care there's -- getting --hey are from apple. their market cap his hovered around one trillion for a couple weeks. that is a lot. markets will fluctuate with the biggest player. we know president trump was considering slapping tariffs on iphones from china. impact the stock going forward? is it anyone's guess? mark: that should be an interesting conversation between tim cook and the ivanka trump. we know the ivanka trump has the ear of the present like no one else. 3% of apple's revenue across fiscal 2018 generated $167 billion in revenue for the company. that does not take into account the additional revenue apple gets from devices and services. that is apples moneymaker

the u.s. consumer pays far or apple pays far or the suppliers pay for it. the supplier we've seen have already undergone pain that would be the worst thing for all of the apple suppliers, chip companies, et cetera. if apple pays for it, that means they're absorbing it in their margin if we pay for it, are we going to pay $10,200 for a new iphone? >> $10,000 >> sorry, $1,200 are we willing to pay? >> maybe everybody takes a little pain. i don't know i think apple will take some pain if this comes to pass if it does i think they will. i think that -- i mean, dan, you for a while said they're running against the ceiling of the price point for the customer you think that's the case. >> the higher asp was the last part offer thannings number. >> but what's also defining is they'll stop reporting units they're seeing a greater uptake on their upgrade program so they're thinking about this as more of an average revenue per user and layering on more services so you're thinking how much does it cost to have my apple pay, my music, my soon to be t subscription and th