the most you can hope from the debt side of the story is just to get aid. if you look at teslaat issue has been hammered. it makes me wonder why people were buying in, in the first place. somebody people warned about it. >> again, there is a lot of things to like in the tesla story. i'm certainly not going to talk about the motivations of the other buyers, but we take a very bond, credit heavy approach and you have to look at risk versus reward. for a lot of these issuances, they are not in balance. jonathan: many people have come out cautioning what happened in a credit market, maybe some complacency. the federal reserve likes to talk about valuations, but they usually talk about stocks. should they look at the credit market? >> i think they look at a variety of products, commercial real estate, auto loans, credit markets. and a lot of the speakers have alluded to the fact that they are easy right now with the tightening of credit spread. it is something on the top of their mind when it comes to tracking financial stability and this is something that we will be looking for in

julia: you just mentioned about the tesla story and scarlet hinted at it. y is there this paradigm shift in terms of electric vehicles? why is tesla going to be the key against other big tex out there like a baidu or apple that is willing to chunk money at this? baton ami and affordability are the reason why we think tesla is ahead of absolutely all the big outlets in detroit yesterday. i'm surprised that the gap between detroit and tesla. the companies that arethe compay the biggest threat from the product standpoint --the company the biggest threat from the product standpoint -- the tech companies lack the ability to manufacture. to try to scale this up not only onthe companies that are probaby the biggest threat from the product standpoint -- the tech companies lack the ability to manufacture. to try to scale this up not only on the car front but the battery front is a nexus size that can take a decade to procure the land, build the money. if you put those pieces together, tesla has a comfortable lead and are inching ahead every day. think mobile three is

the line >> yet they are willing to say i only need 5% or in tesla's case 5.at that. >> in tesla's case it tells us people are blinded bipartisan the tesla buzz, the tesla story and nothis company is junk rated. negative cash flow they went out with a bond that has protections you expect from an investment graded company >> some of those interestingly very much in favor of tesla in this case, you had kind of a whole part of the business that was sort of sequestered away from what bond holders can have in terms of securing this. >> these bonds are unsecured you can only look to tesla or solar city to pay them back. what they did is they said we're allowed to incur secure deshts in the future subject to some limits but we can lean up, give ten plants out in nevada outside of the covenants let's say this deal closes monday they could go out with a deal on tuesday and leaseholders would have nothing to say about it >> it's the first bond offering. >> they've gone out with three or for you series of convertible bond low interest debts obligations but can get converted. >> what i find so interesting if you want to points to the fed for fed for anything, i would look at thi

the top corporate story. check out rally in shares of tesla. e carmaker topping wall street expectations with a narrower than expected second quarter loss shares up almost 6.5%. quarterly revenues doubling from a year ago, deliveries coming in strong tesla says it has more than 1800 daily reservations for the new model 3. it's expecting an increase in deliveries of its model s. on the company's earnings call, elon musk reassured investors that the company can keep up with demand. >> what people should absolute i will have zero concern about, zero, is that tesla will achieve 10,000 unit production week by the end of next year >> joining us now on the cnbc news line is the partner and chief investment officer at tigris financial partners. just first off, your impressions of the conference call which we always get a lot of colorful highlights we shared a few there from elon musk >> it's always positive and upbeat the exciting thing for tesla is that the 3 has finally arrived they delivered their first ones on friday. production will ramp up and peo

the economic story in the states. one in three, fascinating. interesting new model from tesla. tt: still, that is the second day running that story has been the most-watched. recommend viewers going to watch on tv. next, we will drill down into bp earnings after a beat, but it beat at a lower bar and a concern about debt. this is bloomberg. ♪ ♪ 7:44 in london. how will bp open this morning? second-quarter numbers beat the estimates. but analysts have been sharply reducing expectations for the company over the last couple of weeks. it is a lower bar. meanwhile, bp debt continues to build is cash flow is unable to cover cap ex-dividends and payments linked to the u.s.-gulf of mexico oil spill. joining us now, will kennedy. good morning. is that a fair characterization? yes, they are a beat, but they have been managing expect nations. -- expectations. >> it is good news, they are them a condosh but payments continue to be a drag for bp and it is starting to differentiate them. we had a fairly up each .tatement from shell and total it is hard to get excited about these numbers. debt

jon: the tesla story is really interesting. loaded dud to help finance move into the tesla 3 model. so, you know -- sandra: you think it's interesting or you like it? jon: it's a gamble for the company because they have to deliver the cash flow to pay off bonds. they are betting on ability to move into a mass consumer -- kevin: debt is cheaper than equity right now and why not issue the debt when you can if somebody is willing to give you this and they can roll going forward, i mean, it makes sense. jon: it's cheaper of equity but they have to pay it off if they don't roll it. kevin: shareholders are rejoicing over this. sandra: i can already see the mistakes going back to apple watch, it's going to accidentally make phone calls all of the time, right, and pick up your private phone conversation. kevin: here is the sad part, nsa can turn it on and listen whenever they want to. you have to be careful about that. sandra: baseball player mike trout gets a weird rendition of his birthday from teammates. >> happy birthday to you, ha

the top story today, shares in the electric car company tesla are pretty sharply after reporting a doublinghree car. that has begun shipping right now. it has been pegged as the big change for the electric car market. now markets trading in europe, the footsie down slightly, they are all edging lowerjust a little bit. not following on from the record—breaking night on wall street, the dow jones record—breaking night on wall street, the dowjones closing down. cirque du soleil — or in english the circus of the sun — it's one of the biggest theatrical producers in the world. the company had its beginnings in 1984 and now has almost 4,000 staff from more than 50 countries. known for its acrobatics, the group is putting on 20 different shows around the world this year. and the canadian company is expanding, it's just bought the american entertainment firm the blue man group, and is looking to walk the tightrope to china. sharanjit leyl has been speaking to circue du soleil‘s chief executive about the company's expansion plans, and the challenges it faces. now with the acquisition of blue man gro

connell: that is the thing, emails, people don't want to look at those, or have other people looking at them. hillary, thanks. we'll stay on top of the story, the hbo story. tesla early success with the model 3. it has a lot of attention, receiving deposits from more than 500,000 orders. however jenny beth martin joins us, tea party patriots to talk about elon musk a little bit and success of mr. musk coming at the price of big-time government subsidies, right? that has you, and some others i would say over the years you upset. they say this guy, gets a lot of credit for you all his ideas but he couldn't be able to carry many of them out if the government didn't help him out, right? >> that's correct. thanks so much for having me, connell. elon musk, i wish him great success with the new model 3. i hope he has so much success and profit he can quit taking money from the taxpayers. each one of cars, for first 200,000 cars, purchaser get as $500 rebate. two years ago there was a study that the "l.a. times" did, showed he already received for three of his companies 4.9 billion, that is 4.9 billion, 4.9 billion, with a "b," dollars from the government in taxpayer s

the news is out, then we start to move sideways for a while. >> yeah, we'll watch for that along with things like repatriation on legislation. tesla is the storyay though, getting a boost now worth more than ford or gm, again, the electric car maker posting a smaller loss than expected sales nearly double. partly thanks to preorders of the new model 3. the company burned through more than a billion dollars in it's most recent quarter as it tries to get the three, production going, get the factory up and running. henry, some people have a problem with it, some don't, what do you think? >> i think they will need to continue to factor into your owning the stock they're going to be back to raising more capital. the idea that they're suddenly going to turn into this hyperefficient cash machine doesn't make any sense i think stepping back from it, eventually, tesla is going to trade at 20 to 25 times earnings we know that but, wow, is elon musk compelling as a leader, even beyond tesla, but the things that he makes happen that just seem impossible to everybody else, i've talked to portfolio managers recently, they used to own the stock because of th

the business stories. charged up! sales surge at tesla. t can it stay number one as rivals plug into the electric car business? plus, hard labourfor nissan, as workers in mississippi vote on the right to form a union after a ill—year battle. welcome to the programme. the russian prime minister says new sanctions imposed by the united states are tantamount to declaring a full—scale trade war. dmitry medvedev said the measures, which were approved reluctantly by donald trump, demonstrated the complete impotence of the president. unusually, mr trump signed the law behind closed doors, and then described it as "significa ntly flawed." our north america correspondent, peter bowes, reports. the sanctions are in retaliation for russia's alleged role in last year's election. it is also punishment for the annexation of crimea in 2014. it will limit the amount people can invest in russian energy projects, making it more difficult for us companies to do business with russia. it also imposes sanctions on iran and north korea. congress overwhelmingly pa

this is the ceo on the conference call with investors as we speak. battery gate and tesla. storyhe safe and the will. result in the market. what he is reflect in the rhetoric we have seen in the commodities industry so we had the big oil producers come out and talk about the demand and decades of the oil. now it is demand. they have white. it is going to be a big deal in this market. manus: thank you for being with thank you for being with us. a senior independent nonexecutive director at when core. that is it from me. you have the tougher opening on the equity markets, you will see individual names through the different story, could it be down, london is down 0.1%. you're seeing futures integrated that much lower. mario greco will be with us in the next show so stay tuned. a.m..s after 7:30 the european market is up next. ♪ track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome.

the moon administration. emily: this is "bloomberg technology." now back to our top story. tesla shares gaining in late u.s. the company burning through cash , less than analysts expected. the burn rate was still a quarterly record, and almost double what tesla went through in the first three months of the year. the conference call has just started. we will bring you all the latest headlines. we are listening in. joining us to break down the results, kevin who covers tesla for us. all eyes on model 3 and how production difficulty will impact the results. what do you think the highlights are? kevin: i think the cash burn is probably at the top of the list. i am not sure there are a lot of numbers in there. just from the perspective of being second quarter, haven't really gotten to model 3 production ramp. solar roof contributing revenue just yet. this is a quarter that the smaller than expected loss is a good thing, smaller than expected cash burn is a good thing, but there is a lot of heavy lifting to do until model three gets to where it is generating cash flow for the company. emily: talk about the heavy

the results for tesla. be a newoing to quarterly exercise in survival? needss clear that tesla money. that was clear when we looked at the earnings report. once interesting is that now it's becoming a bond storya has incredible cash needs. it's a growth company that's talking about building additional factories. the bond market receive this and are they willing to wait for eight years? one of the risks involved, how are they rate -- what are the risks involved? how are they rated? all of these questions have to be answered. >> i think once interesting about tesla and something that is important to note is that the shareholders own the vast majority of the company. elon musk has a 20% stake. fidelity has 10%. when you are thinking about raising money, you don't want to dilute the shareholders. questioning the share price being so high right now. but they definitely have cash needs. they inherited solarcity and all of solarcity's debt. going forward, the amount of debt is going to be something investors should watch carefully. tesla, according to our reporting has been offering 5% on the nose, a little bit above the junk debt we look at here. in a worlde a lie a world quite a lot in where rates

the model three, the future, story, and all that, but what could we learned today in the report or call that would inform that outlook? interested to find out more about the amount of tesla up by leases. the entire auto industry depends on leases. leasesrest the cycle, are one of the big drags. we are getting a lot of vehicles coming back off leases as used cars, presenting a cheaper alternative that could hurt and the ability to finance future leases. given it looks like tesla has been cutting prices on certified preowned vehicles come they might be subject to that and i would like to know how much. scarlet: that is an interesting point. we had not heard tesla was probable to the cyclical swings. kevin, jump in here. far hases declining so not been a factor for tesla. is that likely to change going forward? as a boutique automaker, 76,000 deliveries last year globally, yeah, there is still a large addressable market. the question is are they just selling to the pent up demand of , toys for those kinds of drivers, or are they moving into that realm of where they are talking about 500000 and one million units per year. companyvery different to be a small boutique manufact

the most you can hope from the debt side of the story is to get repaid. when you look at the performance of teslathat issue has been absolutely hammered. it makes me wonder why people were buying into it in the first place at the kind of levels they did when so many people warned about it. matt: again, there's a lot of things to like in the tesla noty, and i'm certainly going to talk about the motivations of the other buyers, but we take a very bond by bond, very heavy credit focused approach. you have to look at the risks versus the rewards. for a lot of these new issuances , they are not in balance. jonathan: many people come out and talked about what is happening in the credit market and maybe some complacency. the federal reserve likes to talk about valuations, but they usually talk about stocks. should they look at what is happening in the credit market? >> i think they look across the spectrum on a variety of products. they look at commercial real estate, auto loans, what is happening in credit markets. a lot of the fed speakers have alluded to the fact that conditions are sure nearly right

what got him so riled up first, we start off with the big story on shares of tesla revving up following its earnings report we've got full team coverage gene is back with us out in detroit today getting ready to listen to the conference call in just about 30 minutes. we'll check in with him. phil is in chicago dig iging through the earn x report that just crosseded and phil, you had to read the shareholder letter, investor letter and to me, they addressed the issue of cannib cannibalization and cash flow. which i think were top of mind for investors. >> right we'll talk about that cannibalization because there's been so much speculation that as the model 3 came out with some strong reviews that people would say, look i'll get the model 3 for half the price of a model s. that's been a concern for tesla for some time. when you look at how the company did in terms of the second quarter and where they were as they were manufacturing more vehicles, the automotive growth margins came in at 27.9% that's in line with where most people on wall street were expecting it to be capital expenditures,

the president hasn't talked pipeline lately. >> maybe tonight. >> yeah. >> tesla the journal has a story about the bonds they sold the other day down 2%. journal characterizes it as ambivalence toward the company. >> i saw that and thought guys they're not treasuries. >> yielding 5.3. way above. >> right ilan musk. there you go ilan musk, a titan full faith in that man. >> ge is down five straight. now 9 of 11. >> that indicates i'm an idiot there you go no, i'm early. sorry i'm early mr. flannery he has his work cut out for him. >> you exited wells a couple of weeks ago. >> yes, i did. turned out to be a good price. ge, i'm stuck. yeah you know, i don't know if you saw the movie "passive glory." >> one of the great films of all time. >> trapped like rats i feel like i'm trapped like a rat in general electric but mr. flannery could issue, could come out with a plan that's better than uber. presuming jeff gets the job. >> as ricoh says they're close. >> still going with that, huh? >> we'll see the board votes in the next couple of weeks. >> overall, though, jim, in terms of leaders, financials and semis, you would probably take

into the earnings your note today seems pretty bullish in terms of what tesla was able to manage for the quarter. what are the outstanding reservations that you have >> yes, melissa, i think this storyall about can tesla build in volume the model 3, do so profitably and do so with a good and high quality level? and it's really all about execution. if tesla is able to deliver on what they said last night in terms of its gross margin targets and manufacturing ramp, the stock will do well from here i think the real question is, is that realistic as phil mentioned, manufacturing will go up five-fold and tesla is striving to achieve margins on the model 3 of 25%. they've struggled to achieve that margin level on the model x which has an average selling price of over $100,000 the model 3 starts at $35,000. and so i think at least in our mind and the bull/bear debate on the stock is highly polarized. the bears would say they are spending billion in cap x, fw they can't get margins, they will drain cash and may run out of cash. >> how many money are they running through quarter by quarter or year by year? >> well, right now we don't expect them to make money in either the third or fourth qu

lisa: a look at some of the biggest stories in the news right now. after just a week, teslads are trading lower. the electric carmakers want $1.8 billion of 5.3% notes. the hit about $.97 on dollar today according to data compiled by bloomberg. eight year securities price to week ago at a record low yield 300 -- has added $300 billion to meet demand. one of the bearish strategists still thinks bitcoin have lots of room to grow despite hitting all-time highs. thomas lee says the --ptocurrencies could take could hit $6,000 by next year. he expects bitcoin to reach about 25,000 by 2022. barclays track how often bankers are at the desk. the device uses heat and motion centers -- sensors to track movement. it's not moderated productivity, just identifying which unoccupied.re that is your bloomberg business flash. i'm just processing that story. a company reported earnings beating expectations. here to discuss his oliver renick. how did they beat? oliver: they beat on pretty much everything that counts. they had a next occasion for fourth-quarter profits and revenue that exceeded

tesla lowering the price. cheryl: he can sell me a car. what a sweet man. coming up, we are going to have more details on the big story. rth korea threatening to use nuclear weapons against the u.s. is the only option left military? we are going to discuss that one. i've tesla rent $3 billion of cash, elon musk types this market to push the model three electric car. is that a smart idea? you are watching "fbn:am." ♪ i am totally blind. and non-24 can make me show up too early... or too late. or make me feel like i'm not really "there." talk to your doctor, and call 844-234-2424. ♪ [brother] any last words? [boy] karma, danny... ...karma! [vo] progress is seizing the moment. your summer moment awaits you, now that the summer of audi sales event is here. audi will cover your first month's lease payment on select models during the summer of audi sales event. cheryl: welcome back. the pitcher caught up on what's happening now. a manhunt underway underway after rookie police officer shot and killed at a traffic stop in missouri yesterday. officer gary michaels pulled over a vehicle for driving with a pet but not in the same

. >>> a new test of a big hyper loop and where the new air force one is coming from three stories from mr. lebeau. phil, let's start with teslat's all about the conference call this asp. between tesla reports earnings after the bell, the real interest will come when eli musk talks about an hour later. a couple things people will be looking for, first of all, what's happening with model 3 production where are they as far as increasing that production that will lead into guidance for 2018 production, and do they give us any commentary on potential new plants, as well as new gigafactories. the numbers do matter with tesla, but just for good measures, the company is expected to report a wider loss than a year ago. revenue will be increases, they're expected to top $2.5 billion. >>> hyper loop in a new test >> that's the video of the day this is the video of the day remember one day we had the hyper loop executives on the "power lunch" set about two, three weeks ago, they talked about building a pod, here's the video to show they did it. about a week and a half ago, they got up to 192 miles per hour in the development loop out in

has been underway for two hours looking at the markets the dow jones with a slight bump the story now the same gaining 40 points early on. tesla's expand fremont plant is moving forward the plant could double in size the 4.5 million square foot extension was approved last december. tesla wants to boost production of its model three electric car it is tesla's most affordable electric car. elon musk says the company wants to make 10,000 per week by the end of next year. >>> instagram beating snapchat at its own game 100 million more users than snapchat after adding similar story features. snapchat parent says it has 173 million users. snapchat is posting major second-quarter losses of $443 million. >>> investigations in europe after eggs contaminated with pesticides were found. 15 countries have reported contaminated egg products from europe. the eggs came mostly from the netherlands. millions of eggs have been pulled in the netherlands belgium and germany. >>> 150 applebee's and ihop restaurants will be closing. 135 applebee's restaurants and 25 ihop's will close but we do not know the locations. sales have been dropping due to f

the table, which it looks like what is happened. let's go into the story stocks. what is not on the board is tesla.hat was up in a big way off the strong earnings. we also had a rockwell up in a big way. activision -- rockwell i should point out makes avionics, a supplier for big airlines. analysts said it was not amazoned by boeing. verb in terms of a big player taking over little players. we also saw pioneer natural companys, and energy down some seven and a half percent. -- some 7.5%. let's go into the bloomberg. 175, iflook at g #btv you are playing along at home. we saw the record rise in u.s. equities. we are putting it against the global stock market and it is nearly identical to the rest of the world. nothing special about what u.s. companies are doing to push the market higher. when we see it reflected across the world, it at concerns of fund managers who think they have to because just taking money off the table in case a market is setting up for a pullback. yvonne: to some of the after the bell earnings, gopro seeing a turnaround. su: setting up for a strong open on friday. a very strong

alix: the fun story in the corporate bond market is tesla making it debut. to sell $1.5 million to bonds to support spending on its new electric car. the sale will boaster -- bolster its balance sheet even though they pulled in a record $1.2 billion in cash in the second quarter. here is the senior reporter for corporate finance. potentiale is the yield. what are you hearing from investors and are they into it? >> they are loving it. they are saying they are basically raising a quarters worth of cash. they are burning through cash rapidly. however, it is a brand name people love and elon musk is selling the dream. he is calling out to the true believers. they went to market with the price stock around 5.2% for yields. that will tighten because the demand is so high and even in a week where so many geopolitical risks are playing up, they have already gotten more than 3.5 billion already. in alix: orders. and covenant light is sort of the theme in the credit company for credit but this is extra light at the end of the day. >> the demand is there and they can p

the future, tesla pulled that forward ten years but 2017 was an awful time to buy the stock. it's possible that this can be a visionary person in an overpriced stock at the same time. it's a storynot self-funding, i don't like it. i'm rooting for them, don't buy it. stuart: scott martin, i'm saying that musk is a visionary and has started to produce the middle-income cars, all electric, all american, i say i've changed my opinion on this guy and his position in our economic society, what say you? >> i agree, stuart, musk could be so crazy that maybe he's just so sane. it's funny, i like getting involved with these guys when it comes to stocks because it's like with our clients, when some of them own tesla, you have to know what you own, a volatile stock that moves around a lot. i will tell you something more interesting about tesla, biggest shortest stock in the market. a lot of people even though it sounds totally un-american, almost democratic or something the democrats would do, bet against it. the profits only come if the stocks go down, when you have a big pop like this, this shoot it is stock up. in reality, there's a lot of haters against the stock and there's a reason w

the optimism of tesla. the product has to deliver. once he gets those two matchup, it is possible that it is worth what people are paying for it now. carol: two brothers, i love the storybly haven't heard but it is crucial to the internet. this is stripe, founded by brothers in ireland. they are now in silicon valley. specialize in the backbone infrastructure of online payments. they have done a deal with amazon, another big step, their company is worth a shade under $10 billion trade this is a brutal industry. everyone knows from their credit card fees. they have built something that has relied -- for so many transactions. americans spend billions of dollars every day online. so much of that is going through their payment processing. what i love about their story is, these brothers are interesting. 16 and gotduated at into m.i.t. based on his sat score. they have an unusual company. a lot of smart guys and a great disruptive tale which we love. we have that story. on any given day -- >> on any given day in the u.s. we spend $1.2 billion online. that will probably double five years from now. stripe runs a lot of the infrastructure that we use to buy things online. you

can tesla's latest move in the trucking space in the california company that's on track to beat tesla to market. those two storiesaight ahead. at ally, we offer low rates on home loans. but if that's not enough, we offer our price match guarantee too. and if that's not enough... we should move. our home team will help you every step of the way. still not enough? it's smaller than i'd like. we'll help you finance your dream home. it's perfect. oh, was this built on an ancient burial ground? okay... then we'll have her cleanse you house of evil spirits. we'll do anything, (spiritual chatter) seriously anything to help you get your dream home. ally. do it right. upeace of mind.s we had a power outage for five days total. we lost a lot of food. we actually filed a claim with usaa to replace that spoiled food. and we really appreciated that. we're the webber family and we are usaa members for life. so that's the idea. what do you think? hate to play devil's advocate but... i kind of feel like it's a game changer. i wouldn't go that far. are you there? he's probably on mute. yeah... gary won't like it. why? because he'

the price target. hefty price of 234.84. >>> now this story. tesla's elon musk has a warning for the united nations.emac. liz: he signed an open letter from 116 experts from 20 counties joining a guy from alphabet as well. should add them to list of banned chemical weapons and banned armament. it can happen on scale, faster than humans comprehend, killer robots. not just drones, machine guns and tanks as well. they could be hacked and terrorists used on innocent populations. >> sure. liz: it is a pandora's box, they're calling killer robots. ashley: what can the u.n. do? liz: put them on the banned list of chemical weapons and certain form of lasers. i hear what you're saying. >> my sent schism is palpable. i hear what you're saying. not being crazy or nutty bit. talking about a reasonable threat. >> reasonable concerns. ashley: yes. moving on, i'm being told. now the first total solar eclipse in 38 years happening over north america today. joining us now, michael gillen, author of the book, the null prophecy. when i see the word prophecy, should we be worried? >> shouldn't worry about the solar ecl

. >> andrew, i'm wondering, one of the top stories on our website today is about how tesla workers sayse than saw mills and slaughter houses as they enter this season of production, is there a risk here that they can actually meet the demand in this market? >> i mean, the short answer is absolutely that is a risk, there are other risks, no two ways about it. execution as much as it has been critiqued has actually been pretty darn impressive over the long haul here so, i think if there are some issues in terms of safeties a suspected will be ironed out and they'll continue to advance quality capability, functionality, faster than everybody else >> and, what about that jeff we keep hearing that demand for the model's s and x have peaked, but is it possible the model 3 which has perhaps a much greater possible audience of consumers that could save the company here >> yeah, certainly model 3 is a mass market, we're of the view as well you are starting to hit saturation which is where the bulk of the profit is. the i think they get a get out of jail free card so to speak through the self-ad

alix: it is the corporate bond story we love talking about. that is tesla. after there was so much -- $1.8 billion after there was so much interest. the stock up by 2%. morgan stanley raising its price target today. fascinating you have all these analysts upgrading price targets, so much demand in corporate bond market, and yet we are talking about high-yield spreads and a concern about a bubble in the market. risk on in terms of tesla. fiat chrysler up by almost 6%. it is said to have received and rejected a bid from a chinese automaker. the idea was the bid was a smaller premium to the current price. they were approached and did not like the number. nvidia got hit last week on earnings that disappointed. today, they are getting upgrades from analysts. one sense it is a buying opportunity. the pullback is what investors have waited for. it says datacenter sales will resume growth. that is what will lead the next wave of growth for the company. analysts sticking with the stock. jonathan: waiting for someone to say the pullback is not a buying opportunity. dav

the acquisition of whole foods. just 1.455 -- percentage points above. column, your latest bonds with an equity story. not just amazon, but teslast week. >> the best you can hope for is you will get your money back with a coupon with respect to history. if you are going to buy this, you are hoping to get your money back but you are being sold on the story being sold to equity investors that amazon will dominate. jonathan: why is it being reflected in the bond market when people are warning about credit and evaluations? yet, these issues are tight spread. lisa: it is a $16 billion bond offering. that is equity at that point without the upside. basically, who predict what will happen or what amazon will look like in three decades for decades? the crazier thing is, this is demand. because theyamazon want to match up maturities. if you look at the long picture, and they say, we do not see well, ifcelerating, you get less than 4.5% for 40 years to own a piece of something that might be the dominant player in retail in the future, that doesn't look bad. david: how much is it amazon and what is the alternative? -- last time i heard, i

the day's big stories...including people behaving badly mark carpenter has sports.. and your four zone weather forecast with brittney shipp. it's the kron 4 news at ten ... right here on the bay area's news station. tesla to raise one-and-a-half billion dollars so it can ramp up production of its new model 3. billed as an affordable electric car... the model -3 started rolling off the assembly line last month at the company's bay area plant. the demand is relatiively high... with about 500-thousand people on the waiting list. tesla says, it hopes to be producing about 5-thousand cars a week... by the end of the year. by offering bonds to raise cash... the company is betting on an even bigger increase. to put things in perspective... tesla made a total of about 84-thousand vehicles last year. the model- 3 has a price tag of 35-thousand dollars... but with federal tax credits... the price starts at about 27-thousand. [ man narrating ] in the criminal justice system, sexually based offenses are considered especially heinous. in new york city, the dedicated detectives... who investigate these vicious felonies... are members of an elite squad known as the special victims unit. these are their stories. ♪ [ d

the credit markets have really been strong. i was a bit amazed at this story on friday. there was a lot of chatter amongst the traders about teslacing that seven-year bond 5.3% the rating was a b minus this was a junk bond deal in the middle of august in the midst of the biggest geopolitical crisis in years and they lapped it up of course, we have reports of amazon putting together the bond deal for whole foods numbers being thrown around. ten times the tesla deal and the pension funds are all lining up. they all want that we have stock markets and credit markets also firing on all cylinders. jim mentioned it briefly but it's important to see the trends continuing double-digit growth year over year in online sales for a couple of years now. it's been double digits, do it yourselfers, despite home depot being down, still strong here. furniture sales have been strong throughout the year. that's another sign people are putting money into their homes i always joke about the restaurants and bars but it's been up. low single digits for more than a year now 2, 3rks 4% finally the department stores continuing to be down a bit here sport

the deputy not seriously hurt, but is considered right now to be armed and dangerous. we are following that story for you. good news if you're in the market for tesla'sodel acts. the company has cut the price by $3000 so it's now 79,500. they are saying that because the more efficient manufacturing products. meanwhile, tesla rolling out the more affordable model three sedan. tesla owners and other electric car buyers are now saying there's a shortage of chargers. electric cars are 1% sold in the u.s. most owners charge at home, but when you want to go somewhere you've got a little problem. chargers especially for those guys who live in cities coming out good look at the stock right now is up in the premarket. long-awaited dark power. the number one spot over the weekend. actually the weekend was pretty slow to watch. >> this protects both our worlds. >> is quite the devil, isn't it? >> .com his verse. sandra: the critics are crazy about the adaptation of an over something. the film a 19.5 million. dunkirk sang to second place this week with 17 points 6 million, one of the biggest hits of the summer. and then the emerging movie. 12.4 million. gross tr

stories. rio tinto continuing to push up the footsie 100. a mixed picture in europe. and samira hussain has the details about what's ahead on wall street today. electric car—maker teslangs on wednesday. it has been selling more of its model s and model x luxury electric vehicles and that will likely boost revenues for the quarter. the trouble, of course, is that the company will continue to post losses as production efforts for its mass market model 3 really ramp up. now the model 3 is tesla's lowest priced electric car. investors will be looking for details about the car deliveries for the second—half of the year as well as any changes to its model 3 delivery plans. also reporting earnings time warner, the success of the film wonder woman will help boost revenue for the quarter, but investors will be looking for details on at&t‘s purchase of time warner. sap samira there with the details about wall street. joining us is alex dryden, global market strategist, jp morgan asset management. welcome to business live. a new face on the programme. so let's stay in america because yesterday, as sally mentioned, the dow did particularly well and it was banking stocks that ros

ai will bowyer robw power robotics tesla is a super controversial story, but i don't think people understand thede of how that will change all our lives so ai robotics and then augmented reality. tech always moves in waves in there is a hugewave coming around those three things we talked about >> okay, guys, thank you >>> booming business of esports, which stocks stand to benefit? we'll speak with one analyst who made a big call today on the ultimate couch potato sport. you always pay your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual insurance. going somewhere? whoooo. here's some advice. tripadvisor now searches more... ...than 200 booking sites - to find the hotel you want and save you up to 30%. trust this bird's words. tripadvisor. >>> all those people

falling out of the gate and what about bond offerings turns out tesla's high yield are having a tough time in their debut trading it around 88 cents on the dollar today. >> with bonds the storyup or down a lot based on sentiment since they priced that deal which they priced very well because the market was very accommodating. high-yield spreads have gone up meaning the prices have gone down relative to treasuries. not as if it's going the opposite direction of the trend. obviously this was considered an opportunistic bond offering. >> still yielding more than 5% if people feels like that's what they would want. >> which is not used to be high yield but now. >> after the oculus rift price, now to the vr headset, hype is over for vr clearly as this chart shows, but is there a market for this technology to go mainstream >> i think it's got to go behind the stand-alone thing and that's never going to be how everybody is experiencing this somehow incorporated into the phone. >> part of the augmented reality on your phone. >> i think it has to be more seamless as opposed to going out. >> the new thing according to gartner. ch >> president trump's first trump for labor secretary be

they were here including tesla and david >> we're hearing from one of lee's descendants who live in our area and getting his thoughts. chris gordon is here with that part of the story. >> he believes his great grandfather would be ashamed of the violence that marked the protests in counter demonstrations that took place last weekend in charlottesville. >> in my opinion, he never would have been that started the riot. we don't need people like that in this country. >> robert e. lee, iv, believes that people these days have lost the ability to discuss in -- >> we don't have respect for any each other any more. >> i asked his reaction remove the statute of his grandfather -- great grandfather, general lee. >> people say, take it down, take it down, i have no problem with that. >> he acknowledges for many people, the statute of robert e lee standards for the fight over slavery. but he says there were other issues, issues of states rights and that his great grandfather fought first and foremost as the son of virginia. robert e lee, the fourth, says the money that it would cost to remove confederate statutes could better be used to educate people about the history of the

story 4" and the "frozen" sequel than the poker channel. but we did hear that you got your hands on the new at the scene tesla model 3. >> i'll speak about myselfd person, but i get access to a lot of things. and let me just say, yum yum elan has created -- oh, my god, it's a yum, yum, yum, yum, yum i've been driving it and it costs the same as a porsche and prius. all the people criticizing elan for the last decade to say he's not going to get it done, they -- wow. the model i have, of course, has all the features, it's tries the prius, but the model available in the next year will be costing 35, prius level. but if elon has a big line of hamburgers, this is a wagu hamburger at a shake shack price. it is an achievement unlike anything in the history of technology it literally is up there with the iphone it drives like a porsche it's incredibly fast the technology is amazing. it's rock solid. >> so are people going to be able to get their hands on them, though, is the question? nobody questions that tesla makes drool-worthy cars, but i have heard service complaints for some people who have the car. love the car, but don't like the way they hand

in tesla have risen sharply this year, driving its market cap above ford and gm >>> staying in the sector, japanese automaker toyota is expanding its hybrid plant in europe joining us with the storymikiko >> yes, ahead of it in toyota in europe, aside from one lexus brand cars, the automaker plans to offer two options such as drive power by 2020. the goal is to lift its hybrid sales in europe to half of its total in the region by 2020 up 18 percentage points by next year starting next week in germany, toyota will offer a $4,000 discount for drivers switching from a diesel end make tor to oe of the hybrid models and several major europe cities restricting the cars toyota has hybrid car sales in europe which includes russia and turkey climbed over 40% last year sales are continuing to stay strong, rising 44% in the first six months the hybrid version of the compact suv accounts for about 80% of the model's sales toyota is looking for hybrid to grow further starting in 2040, demand for electric cars are expected to climb sharmly with sales on gasoline and diesel vehicles toyota said the firm will eventually shift to selling electric vehicles building on that technology of working wi

the biggest business stories. hedge funds are benefiting from rising stock markets. fund and viking are both more than 9% this year. kensington funds are also higher by about 7%. tesla'slster its balance sheet at a record $1.2 billion in cash at the second quarter. financial shares began trading today. the metlife's and off was valued at $7.5 billion. it sells life insurance to individuals in the united states. $220 billion in assets. that is your business flash update. scarlet: let us turn to the text system in europe. exclusively and found that taxes will be lowered and harmonized across europe. we want on the same playing field for everybody. when you are doing business in france, you have to pay taxes. you cannot take the benefit of doing a business and france or in europe without taking the taxes are paying in europe or in france. it is for all the companies and all states. >> does that mean you want to lower the company tax to 25% everywhere? >> we will lower the corporate by 2022.% for the second step, we want to around the members of the euro zone. we have 19 members of the eurozone. we have one currency, the euro. and we have 90 levels of taxes and 19 differe

the sale comes after tesla's which hadlast week, relatively low yields. the credit market, is it being rational here? peter kinsella and charles dumas, joining us. let's kind of figure this out. peter, let's look at this storyre out the implications. amazon just sold 40 year paper at just over treasuries. it might be a decent pickup over treasuries, but the u.s. government has not yet stepped into this story. i know it is being considered. do you think if he looked at this yesterday and said, there is demand, i can do this -- and i relate this back to the infrastructure story we were talking about as well. >> i think, yeah. money treasuries are issuing longer and longer dated paper. yearnd recently had 100 paper as well. a few treasuries are issuing longer dated paper. i would do exactly the same thing. it is a logical thing to do, lock in low yields. guy: you think the credit market is acting rationally, charles? >> the credit market has a flow of funds, and they have got to put their money somewhere. that is what they do, buy the stuff that has got some yields. do i think these yields will persist in the long run? no, in that sense, if you have the capacity to wait, you should. but you might have to wait

. >>> a couple stories we're watching this morning. check out the rally in shares of tesla.o topping wall street estimates with a narrowly than expected quarterly loss deliveries came in strong. on the earnings call elon musk reassured investors that the company can keep up with demand for the model 3. >> what people should absolute i will have zero concern about, zero, is that tesla will achieve 10,000 unit production week by the end of next year >> we'll talk to a tesla analyst in came minutes. >>> in deal news, invesco reportedly in talks to buy guggenheim partners etf business discussions are in an advanced stage. the etf unit has roughly $30 billion in assets under management invesco manages about 125 billion in etfs. both firms said they don't comment on market rumors. >>> on the earnings agenda clorox, kellogg and yum brands report results before the opening bell after the close, kraft heinz and viacom weekly jobless claims are out at 8:30 that's followed by the ism services index and factory orders at 10:00 a.m. >>> aetna just posting moments ago, and it's a great bi

they're saving the planet they should look at these and realize that they may be they want to own a tesla because they want to be cool. but teslas are not saving planet when you have a storye this story, you realize that there is still a lot to be done and that -- and that arena -- >> don't be too nasty to the greens. they're half regions quickly talk about delusional. also takes a lot of water to build battery factories but separate from that also the electric utility rely on natural gas to deliver electricity to these cars. so morgan stanley i think has it right. >> give me 20 seconds how you feel andy? >> i think most of the electricity in this country produced by coal. so if you're burning coal to drive your tesla it is, obviously, not healthy. but i mean i -- all of this taken together i would say i like teslas there's nothing wrong with them but i don't think you're saving world if you drive one. >> voice of reason. listen to this one. caught my attention. states and cities some of them have started to charge a netflix tax to make up for revenue lost from cord cuts and video rental places who imposes the tax and who pays? >> you pay for it. you viewer, and chicago,