a watershed moment, that was the message from apple phone's tim cook. cook said he's extremely confident about the release of the world's biggest carrier. china mobile says it's received 1.2 million preorders for iphones since december the 25th. eunice has been speaking to both gentlemen. she's got more for us from beijing. eunice, we've waited so long for this deal. is it okay now that we've got there and are we sort of fairly happy with the details? >> well, i'm sure both men are fairly happy with the details. they are able to close the deal. there were good feelings all around today to see the reports between the two mep. the china mobile chairman said now i'm going to switch to an iphone. tim cook apparently had given him his own iphone that was made for china mobile. it was in the gold color because that's popular here in china. overall, there is so much excitement over the release of china mobile which will be in stores on friday. >> it's a watershed day for apple. it's a huge announcement. i am so honored to be doing business with chairman xi and

one-on-one with apple ceo tim cook. i asked him what's coming next and this evening, a major victory for made in america, and what tim cook now wants every american to know about this country's controversial surveillance program and your computer. it got our attention. headquarters in silicon valley, where steve jobs' own words still loom large. few get time one-on-one with apple ceo tim cook. so, this is the most powerful mac you have now. >> it is. >> reporter: that's not what got our attention. listen to this, it's made in america? >> it's made in america. >> reporter: tim cook announced in a tweet just a few weeks ago, we have begun manufacturing the mac pro in austin, texas. that's right, austin, texas. >> we also announced a huge investment in arizona. we haven't said what it is for. >> reporter: is it the sapphire glass? when does that glass come off the line? >> i can't tell you that. >> reporter: bigger iphone screens? >> i can't tell you that either. >> reporter: iwatch? you heard it here first. that same secr

david: that is great advice but let's talk about tim cook. i have got two more questions. t cook which is he not, you think of the transformational leaders. obviously steve jobs. you think of people like jack welch, henry ford, our leader rupert murdoch at twenty-first century fox, john malone. he is not that kind of a transformational leader, is he? >> no. i think that is why steve jobs hand-picked him to be where he is at. he needed someone to hold the ship together, steer the course to find out who that person will be. tim cook is operations guy. he knows it. apple knows it. it will take more than internal memos to inrig rate the staff. we need market invigoration. need leadership. david: i'm getting push here by the producers but final question, what should happel do with all of its money now? it has this huge stash of money. some talk about content. do more, buy sony pictures or something. is anything like that in the works? >> i haven't heard anything on that, i do love, i can't remember his maim the analyst suggest that apple do something crazy like buy tesla and get

one-on-one with apple ceo tim cook. i asked him what's coming next and this evening, a major victory for made in america and what tim cook wants every american to know about this country's controversial surveillance program. it got our attention. you get invited to apple headquarters where steve jobs' own words still loom large. so, he is the most powerful mac you have now. >> it is. >> reporter: that's not what got our attention. listen to this it's made in america? >> it's made in america. >> reporter: he announced in a tweet just a few weeks ago, we have begun manufacturer pack churching the mac pro in austin, texas. >> we announced a huge investment in arizona. is it the sapphire glass? when does that glass come off the line? >> i can't tell you that. >> you heard it here first. that same secrecy still alive 30 years later, after all of america, on a super bowl sunday was alerted that something was coming. >> on january 4th. >> reporter: then-steve jobs and his trademark unveiling. i want to show you macintosh in pe

tim cook is more typical ceo.china is a big market, we listen to the market. >> apple is losing market share in china. why do you think that is? >> that has to do with the mentality of one-size-fits-all. apple has great experience here in the u.s. in china, the chinese characters are very different from english. you need an input method for that. apple does not have a good one and they do not allow one to be uploaded in the app store. there are a lot of things that the chinese users are not so pleased about the iphone. there is room for improvement. >> what do they not like? >> the smaller screen, compared to the samsung phone. they cannot upload or download their own input method engines. there are a lot of things. the needs are chinese-specific that may not be available on the ios system. >> is apple not as cool in china as it once was? >> apple is still very cool. they have a very loyal following. a lot of people, including my wife, use apple. for me, i am different. i am an internet executive. i need to know -

tim cook wanted to go to china. big marks that tim is making on this company is this is a big deal. and the fact that he pulled it off is good. >> so what's a bigger deal? getting into china or google earlier this week buying nest? >> i actually think google buying nest because i think this shows an amazingly strong integrated strategy that google has to connect all of our devices, all of our lives from our car to our navigation system to how our garage door is going to open. and you know, the internet of things has already gotten so much hype that we're about to hear the backlash. but it's actually real. there are these devices we're going to want to have. >> they wrote a piece over the weekend -- it was right after the nest deal. i'm sorry, not over the weekend -- suggesting between nest, the acquisition of those robots, remember we talked about those a couple of weeks ago between google glass, that that company, from an innovation standpoint, either they're innovating or they're buying innovation. when you think

is icahn going to break tim cook's will and get his way? he wants some of that cash given back to shareholders. charlie gasparino talk to everybody who has the inside scoop. he is coming up in a moment. love it, hate it or don't understand it? bitcoin appeared to seem like it is going to be here to stay even buying luxury homes in sports cars, but will the digital currency ever hit mainstream? especially when one of the big players just got hit. stay tuned. one of the miller twins has a hearing problem. and she's fed up with the daily hassle of her old hearing aid. so she got a lyric in her life and everything changed. which one? you'll never know because the lyric is in her ear. 100% invisible. you can't see it, and it's the only device that works round the clock with zero day hassle. no batteries to change. no taking off and putting on everyday. in their report, a leading newspaper said "lyric appears to have overcome many of the problems associated with traditional hearing aids" sound good? call 1 800 350 3292 now this is the lyric. 30 d

a big revelation about her alcohol addiction. >> plus, tim cook speaking to abc news. the mac turns 30. how do they keep projects secret? >> which uses more water? washing dishes by hand, wishes washing dishes by hand, wishes by [ male announcer ] this is jim. a man who doesn't stand still. but jim has afib, atrial fibrillation, an irregular heartbeat not caused by a heart valve problem. that puts jim at a greater risk of stroke. for years, jim's medicine tied him to a monthly trip to the clinic to get his blood tested. but now, with once-a-day xarelto jim's on the move. jim's doctor recommended xarelto. like warfarin, xarelto is proven effective to reduce afib-related stroke risk. but xarelto is the first and only once-a-day prescription blood thinner for patients with afib not caused by a heart valve problem that doesn't require routine blood monitoring. so jim's not tied to that monitoring routine. [ gps ] proceed to the designated route. not today. [ male announcer ] for patients currently well managed on warfarin there is limited information on how xarelto and war

number one is not tim cook's priority.hat is is making sure they retain authenticity at the -- et and they remain >> you think it is a threat. >> there's enough in china already for people to look at. i think to go in and behave in be very controlled is the top and luxury. >> china telecom started selling the iphone and its market share has declined. does it make back some of the lost market share because it is now able to sell the iphone? >> potentially. it is the biggest prize for apple and that is how it got it's a watershed moment. it redefined the scale in china. it really does. to break outg around subsidy and how much they're going to sell. >> what about counterfeiting right now? >> there's lots of iphones , onady, around 40 million china mobile already. the grey market is interesting in that there is this unnerving conflict between a government that is really controlling. everything apple does is because .t's very controlled there is an unnerving conflict there so it's interesting to see how they will deal with it.

tim cook wanted to go to china.do believe a lot of analysts had gotten luke warm about the china deal. this is coming as kind of a wake-up call for those who have been saying this, it not that big, it's not that additive. it's clearly the biggest thing that's happened for a until a very long time. >> if this is on going, we may be at the early stages of real interest rates starting to rise in the u.s. on the developed world. and there may be some consequences about the surplus. i'm trying to keep an open mind. last year was pretty easy. >> these companies to be alive and thriving in the 21st century, they have gone through cycles of every invention and just gotten smarter and better and expanded their businesses. no matter how we cut the back test -- >>> good wednesday morning. we're live here at post 9 at the new york stock exchange. the s&p is just about at break even for 2014. the dow needs about 100 more points to get there. meantime, shares of bank of america are rallying this morning after earnings beat estima

. >> tim cook will tell you that it is not the cheaper one. it is just a different one.here's a significant difference between apple and the competition. >> xioami makes phones that look like iphones. i spoke with the head of baidu about screen size. robin li says the chinese people want bigger screens. >> not just chinese people. >> i spoke to robin li specifically about apple and this is what he had to say. >> they have experienced here in the u.s., but in china, the chinese characters are very different from english. you need a bigger screen to do that. apple does not allow good search engines to be uploaded on the app store. >> i did not realize that part about chinese characters and the difficulty of the language barrier. >> it is a closed system and it is hard for them to adapt. >> when it comes to the competition, there is samsung which is the leader. apple had a lot of company nipping at its heels. a lot of it is cheaper. huawei is another company that is offering smartphones at a much lower price. >> they are doing better than apple right now. we have the coo of

apple ceo tim cook went there to meet them. and new google contact lenses could help measure glucose. google is working with the fda. ♪ >> this is "lunch money" on bloomberg television, streaming live on bloomberg.com, your tablet, and your smart phone. looking at apple's move to boost sales in china. the country's biggest mobile carrier begins selling access to millions of customers today. it took six years for apple to get the go-ahead from chinese authorities. was it worth it? scarlet fu considers the downside. >> the pricing is not that great and china, if you get an unsubsidized phone, it could be $800. a locally made phone will be in the neighborhood of $300. >> here's the apple juggernaut coming out of 2009, everything is great. i am on the street corner by the iphone store. buy, buy, buy. i was wrong. here is where howard would comment say shut up and buy it. >> former apple ceo john sculley he does not think pricing will be a problem. >> even at their premium pricing, they are going to sell and a lot of iphones. just i

we are now in a situation where tim cook is getting that call. rl icon'sgoing to house for dinner. how do you deal with an activist? understands running apple butter than anybody else. i'm a big fan of 10 cook -- tim cook and what he is an apple. half a billion dollars on apple. he is that ok. isthe end of the day, carl one ship owner of many at apple. i would listen to him. he has made a lot of money this year. look at what he is done with netflix and other companies. he has great ideas. tim needs tohand, look at growth. here is the difference, apple is a little bigger. >> carl could push me out. >> i don't just mean the he could push you around or he has more clout. you look at the growth to me it is a curious choice. you look at something that is an opportunity to turn things around and is undervalued. you look at apple, which is much more mature. it is just an interesting choice to me. >> here is what you do. tim cook avoid carl icahn and move on it is thing. puts the noise that carl behind it. it is a distraction. carl and howrtail do you hav

tim cook making a huge bet on china mobile and the largest phone market. much cheaper android devices such as the market, is cook fashioning the wrong horse? here is another budweiser app for you. tell us which budweiser super bowl ad was your favorite. here is another one. >> how was your weekend, davis? >> i spent most of my weekend here. i have an idea to hide bud light all over the office. give a little morale booster. [cheering] liz: buyout news, mergers and acquisitions. rampant this week. time warner cable, charter trying to buy that. charlie gasparino had us with the details on a potential deal between dish network and t-mobile. charlie: you are the expert, not me. this deal has been rumored about, but it is renewed speculation that this thing is essentially going to happen, a buyout of t-mobile by dish. the deal could come sometime this year. essentially there is some synergy between the ceos. ledger. liz: john ledger is a disruptor. charlie: you know the other dude? >> he told us last week we are always looking. -- obviously really wants that spe

you just saw how tim cook came here, really putting his face on this deal. it's taken six years and it's taken many trips from the ceo in recent months to ink this deal. what it does mean is it could mean 10 million or 20 million more iphones sold in china this year, and it is a boost for apple in china, which has been struggling a little bit against its competitors. >> apple's still far behind as the biggest provider in china. what about price? that's going to be important. and i know the first question that tim cook was asked by a customer in a store was, are you going to make one of the bigger screens? chinese consumers don't like a 4-inch screen. they want a bigger screen. >> reporter: well, that's right, and that's where samsung and other makers here in china have really edged apple out for the chinese market. chinese customers want a bigger screen, they want a cheaper phone, or at least that's what the numbers tell us. apple is a distant fifth in the race to get that chinese market, christine, and they say, though, they're putting a bit of a positive s

tim cook insists the company is growing and new products are coming. cory johnson joins me now from new york. i know you love apple metaphors. has the apple gone sour? how is it tasting to you? >> really? really? perspective is in order. we had a company that was near bankruptcy when steve jobs takes over. and now they have the biggest quarter in its history ever. selling more except for ipads than they ever have before and also the highest revenue before even after the selloff today. the lodges -- the largest market cap. so things look great but the question is what is going to happen in the future? we saw a sales rebound that looked like it was good news. a six percent increase and we saw three consecutive quarters of those increases and we saw a return to profit growth here the company is profitable year-over- year profits increased a little, one percent. when we look at what is going on with this business, we see them guiding toward a world where they are not selling as many phones in the current quarter as we might have expect them to. the shine i

tim cook triggered the technical buy which triggered the rally. my point?on't think you would have gotten a move in apple if it hadn't broken out technically. you could have nailed this simply by following the charts. where does broeden see apple going next? look at this daily chart. she thinks apple could be headed nearly 30 points higher, 587 near term or perhaps even 603 if it can simply jump over the hurdle of resistance running from 562 to 565. see this? it's got to jump over that. if apple can breakthrough this level, this current rally could be just the beginning at least according to her charts which has been pretty accurate so far. these levels could be, yes, i'll use the word, self-fulfillingmeself-fulfillin. as i am such a long term believer in apple that it is one of my longest held positions. if the queen gave you an amazing entry point that technical analyses should be embraced, you want to own very much. but you can't figure out where exactly to full the prig trigger. this is one where the technicals trump the technology. norman in michigan?

nightmare, cook icy -- tim cook's nightmare. has aon't think tim cook nightmare. that the hardware is becoming commoditized. everybody's hardware. in fact, samsung actually has some terrific hardware, in many cases, at of apple. value is on the experience. apple is the master -- >> an excellent point, it is like apple. they have the own ecosystem. they create everything. they keep it in-house, they keep their heads down and they wait for the product is done and perfect before they release it. is disappointment, though, you may not get a sexy new product. part of the issue with the wii u, the consuls were issued but the games have fallen behind. console sales fell. but they may -- they are very similar in ecosystem. >> the problem wii has is the world moves mobile and they are not on the standard mobile product >> but they have their own mobile product -- >> but who cares to go they are all on smartphone. wii double that of the console -- even shopping is going mobile, right? >> exactly. >> you wonder if today brands time, that they are not around. >> i think you a

here's a stock that took off on ceo tim cook's interview where he talked about how the company is goingm because of his new deal with china mobile. it's the most important geographical entry ever for apple. even under steve jobs the company never attempted to do anything this bold. it's bold because lots of people figured that the chinese won't pay apple's inflated price point. let's stick with samsung. we're not sure what the subsidies for iphone buyers will look like, so there is a sense of the unknown. i contend that samsung has lost its edge and pretty much everything lately including marketing. it had been so strong but it's faltered, something i think most commentators disagree with. i don't care. apple no longer seems to get the benefit of the doubt, no matter what it does. three quarters ago the company was heckled on its conference call for not putting enough emphasis on china, so what does tim cook do? he makes it his priority. i think the cynicism about apple and its inability to wow the street, as opposed to google which saw its stock rally for a non-chirping smoke detector

as far as wearable devices, tim cook has talked a little bit about it.apple did not create most of the product categories that they moved into. they just created the products that everyone wanted to buy. >> could google come away looking really smart here? >> i think it is a smooth move here. it is a big and exciting brand that has a lot of places it could go. if they can harness that, it could be great for google and for android in particular. whatever data they can collect from it. >> is there a risk with android creeping into the nest experience? a lot of users and consumers said that they did not know. >> android can be whatever you want it to be. or it can be in the background. there are any number of players, mobile phone players, who do that. android is nothing more than a means to an end. >> we will see where this goes. the deal has to have regulatory approval. google is making a bid to buy nest for $3.2 billion. what is higher than $3.2 billion? $5 billion. that is square's latest valuation. we will talk about that coming up on "bloomberg west."

that'll supposedly the cheaper one. >> do not tell tim cook. he said it was pulled to the different one. we see this and the prices. consider how that compares to the competition that apple has to face. unsubsidized cost for xiaomi is $300. significant difference. >> xiamoi makes phones that look like iphones. but for a lot less. >> the ceo models himself off steve jobs. >> i spoke to the ceo of baidu about this. robin said chinese people want bigger screens. >> not just chinese. >> samsung and other companies offer this. i spoke with robin li about apple. listen to what he hasto say. >> apple has experience in the u.s., but in china, the chinese characters are very different from english. you need an input engine method. apple does not have a good one. they did not allow it to be uploaded. >> that was interesting. i did not realize that about chinese characters. the difficulty of just the language. >> apple is a closed system. it is hard for them to adapt to different markets. >> when it comes to the competition, there is samsung which is the

i think what is interesting here, you asked me before we came on, does tim cook hate him, i think timple is starting to hate him. when carl -- david: on his back. he is the monkey on tim cook's back. >> we reported on fox business first in the summer that the board was starting to get a little impatient with tim cook in terms of his innovation. so there is a little tension there. now you have carl stirring up trouble in terms of giving cash back to the investors. he makes an interesting point. you're sitting on this cash. you're an entrenched board. we think you run the company well but give it back to us. we only company. david: 110 billion. main event was herbalife. >> what is interesting about today. two news events, this on apple but herbalife is down today. david: ended 10% down. >> 10% down. down because edward markey, the senator from massachusetts came out and said there should be investigation. number of chorus of people asking for investigations because this is pyramid scheme he asked the ftc to look at it. herbalife went down after nu skin, similar business model, direct ma

if you think tim cook is good or bad, they just don't like him. end up with this kind of feeling, wow, they're a great company, they're not good enough, how about google, how about microsoft? the reason you would own it is nine times earnings and if they have something special it will happen but it's not because of a -- compare this to a seagate, a company most people don't put in the same category, buying back stock aggressively, a man of the stock, they're not managing the stock, it's the game we're in. >> yeah. one last question, at the very least are we in a period now where they are destined to be ala microsoft more cyclical, more the stock will trade around product announcements the way mature companies often do. >> my real worry is that they are secular, and there's a piece talking about the slowing of the whole cell phone group and the subset is they're not even keeping up with the slowing. they don't have the right product. there's a lot in here. there's this very crucial moment where they're talking about supply constraints but also talk

they wound up in this position and tim cook has said he hates litigation.eels the same way. there are a lot of law firms who are very happy to continue. right, many would like to see it happen. my prediction is it will end this year and we will stop hearing about it. licensing agreements will be worked out and sam sang -- samsung will save a copy the iphone, let's start with a clean slate. >> both of you guys were at ces last week and saw some interesting stuff. how impactful will it be? samsung came out with a connected home and you went inside. >> yes, that's a big trend this year. >> it leads me to wonder what apple is doing right now. >> they're not really doing anything with connected homes. this no evidence they care about it. with the google acquisition of nasa, google cares a lot of out about it -- cares a lot about it. there are many other companies moving into this. qualcomm had a great exhibit at ces where they showed the way they see devices and appliances connecting in the future. they are doing a new gateway that will monitor your internet tra

when tim cook appeared at the store today, he took some questions from commerce. first question he got from a customer is will apple release a large screen device and tim cook said they don't like to talk about their future projects. >> interesting. thank you so much. he also autographed some of them. our technology reporter from beijing. here are some other companies we're watching out for today. google is diversifying into contact lenses. smart ones. it is testing lenses that measure glucose levels in tears. the project is part of google's secretive lab and couldard the challenge s of diabetes. nokia is looking to replace their former c.e.o. michael elop. nintendo revised their forecast. we'll have more. keep it right here on "on the move." ♪ >> welcome back to "on the move ." i am francine lacqua at bloomberg european headquarters in london. we are 30 minutes into the trading day. let's see how things are shaping up. this is the picture for the indices. we are a little bit on the higher side. still hiding for the second week of gains. investors are weighing rep

tim cook. every morning 3:45. >> you get e-mails from customers every single day and you read them. >> yes, i do. i do. this is a privilege. >> houchl how many do you think you read a day. >> i get probably seven or eight00. and i read the majority of those. >> every day. >> every day. i'm a workaholi workaholic. which helps. >> he left but its true. >> i knew i saw the mack in 84 that some day i work at apple. we were working on something that would change the way that people interacted with computers. >>reporter: secrecy part of the culture and exitment of apple is it not. >> it is. we believe that people love surprises. stories of black drape over product in development true. yes. black drip and numerous locked doors and many other things. >> mye who can't even tell the family at home what they are working on. >> yes. yes it's true. >> my wife has no idea. >> navy seal? viewers were saying david you have to fan out what the next then is. >> this probably wouldn't work in the room. >> everyon

i'm thankful to tim cook, this morning he gave me one of the first iphones made for china mobile. and it's gold. >> china mobile's chairman said the company had millions of preorders, even though the pricing of the phones is slightly higher than the company's rivals. for nightly business report, i'm eunice in beijing. >>> lawmakering took a big step towards passing a federal spending bill. the house passed the more than $1 trillion bipartisan bill that will fund the government through the end of september. that bill will go to the senate where it's expected to pass as soon as thursday. >>> the economic outlook is positive and the u.s. economy continued to growed a a moderate pace, that's the message from the federal reserve's late earth beige book survey of conditions around the nation over the past six weeks. now some regions reported a pick-up in growth thanks to more consumer spending and a jump in factory activity. as mentioned at the top of the program, u.s. factories have been busy, especially in new york state. the empire state manufacturing index rose to the highest level

tim cook, china mobile, it's a match made in tech heaven.t is a break through that will vastly expand the sale of iphones and ipads through thousands of retail outlets. watch that stock go. i have a pen and a phone, says president obama. and he will use them to go around congress. watch out. here comes the year of executive action and here comes we heard it, a social network among teens 18 employees, we have the ceo. watch out. here comes "varney & company." ♪ [ male announcer ] this m has an accomplished research and analytical group at his disposal. ♪ but even more pressive is how he puts it to work for his clients. ♪ morning. morning. thanks for meeting so early. oh, it's not a big deal at all. come on in. [ male announcer ] it's how edward jones makes sense of investing. ♪ there's nothing like being your own boss! and my customers are really liking your flat rate shipping. fedex one rate. really makes my life easier. maybe a promotion is in order. good news. i got a new title. and a raise? management couldn't make that happen. [ male ann

a tim cook said there was robert mix problem -- there was a product mix problem.ays the challenges the focus on a few things that deserve all of our strategy. is that the right approach? apple has a very narrow focus strategy. that because is they have a narrow product line, it is easy to design apps for it and add-ons. that helps the other line of business, the app store. if you took the name apple out and called it sterns, everyone would've said it was a pretty good attorneys report. >-- earnings report. >> look at the profitability. >> it is not a great sign and that combined with the other struggles since tim cook took over -- >> you look rate on instagram. thompson, that's what you can do with this toy. >> it's a pretty case ,too. >> imagine when it becomes your wallet. ago, youle of years could not pull it up on another phone and now you can. >> this is the beginning of the story and nick thompson as our guest host. this is our twitter question of the day -- there was a clumsy message but does this message ring true? this is "bloomberg surveillance," on bloo

that combined with the other struggles since tim cook took over.here is a lot of pessimism. >> you look great on instagram. >> imagine what you can do with it when it becomes your wallet. quakes here is the other question. you can pull up another phone. they can do that now. a couple of years ago they could not. >> from high-tech phones to high-tech cars. industry loves showing off. how made of these things actually make it to the streets? we will tell you. and time warner/comcast. we will break down this potential blockbuster deal. ♪ quakes it is 26 minutes after the hour which means bloomberg tv is on the markets. i'm mark crumpton. interesting day, a turnabout from yesterday. the dow jones invest -- dow jones industrial average up .41%. the s&p is at 1780 eight. nasdaq is trending lower. a couple of movers we are keeping our eyes on. first, herbalife. shares are dropping after the new york post reported that canadian regulators are investigating the company over complaints that it has a pyramid structure. herbalife is already facing scrutiny in

tim cook exclusively to cnbc in china. >> it's a watershed day for apple.t ee's a huge announcement. i'm honored to be doing business with china mobile. they have the largest network. we're impressed with them. we have deep respect for them, and have had since the very first discussion that we had together. we see this as bringing the world's best smartphone to the very largest and now the fastest network in china. last year, we were able to work with the government authorities to be able to launch china at the same time that we launched every other country. and the result of doing that, i'm pleased to tell you, though we haven't released our total results, we sold more iphone units last quarter in greater china than ever before. and so, we see that momentum. and the announcement with china mobile today is just being able to, you know, continue -- continuing the momentum that we've really been building for the last three or four years or so in china. it is a very key market for us. and if you look at last quarter, i saw these numbers just in the last few da

we'll talk to howard ward about tim cook. mr. s in china this morning. >> yeah, he's signing autographs on iphones, but we didn't have the queues we were expecting in china, which started selling iphones today. thank you so much. i'm looking forward to seeing your show in 20 minutes from now. that's "surveillance" with tom keene. >> what have we got coming up on "the pulse"? it's a good day to be an apple fan in china. after six years, the apple-china mobile deal is finally coming to fruition. the stakes are high. we're going to discuss how high they are, next. >> wosme back. you are watching "the pulse." we talk about tech, why not? artificial intelligence, a.i., has -- well, it's not dramatically changed the way we communicate and lived. but now it's going to change the game we game as well. a san francisco startup is definitely driving this. they've developed the very first a.i.-driven robotic toy cars, and "business week's" sam got on the grid to find out what's going on. >> most of the time when we're talking about robots and

i think one of the salient points is in this letter to employees from tim cook, apple's ceo, that cnbc obtained. he really takes exception to the ftc action here today. we're waiting for that press conference to begin any minute now down in washington. cook says it doesn't feel right for the ftc to soog sue over a case that already had been settled. to us it smacked of double jeopardy. however, the dede decree does not require us to do anything that we were not already going to do. the headline number is $32.5 million to settle this complaint by apple and to the ftc. >> eamon, wht when it comes to settlements and corporate bfine, the likeses that we've seen by other infractions by other fshl agencies that have levied on banks and the like, with $150 billion in cash, this is chump change. >> the dollar amount is small. note these are full consumer refunds. this is not being expressed as a penalty being paid to the u.s. government. consumer refunds of $32.5 million. that's an important nuance there because what apple's ceo tim cook is saying in this letter is this is something we had pla

in tech, tim cook goes to china. he says great things are coming for china mobile companies.sports. chuck e. cheeze gets a new life, but will parents ever like him? the nba going to london, and it is getting a new commissioner.

former apple ceo thinks the current ceo, tim cook, is putting the company in a great place. >> appleells high-quality products. they are in a great addition, tim cook has done a terrific job positioning them to make money not just on hardware, but it is starting to commoditize, to make money on the services. app store, itunes. even in china, is a terrific amount of usage of their services on the iphone, even though the market share of the iphone is relatively small. >> apple's stock is bouncing sculley hasy -- lots of company, like gamco's ceo. >> international expansion is a .ig part of the story greater china, taiwan, hong kong is significant. is thatthing here apple's marketshare has not receded. apple's market share has solidified and is poised to grow from here -- domestically and overseas. business week article of the year was sam grobart on three apple executives, they said they would not give up the high ground of an aspirational product. do you think india and china will pay up for an aspirational product? >> absolutely, the apple brand in china is still extremely strong and

do you need a meeting with tim cook? apple's view is that this case is misguided from the beginning. a bunch of book publishers conspired together and apple's view is that at its worst, it's a case of five mice conspiring against a cat. overall, apple was not making the book market less competitive. that began and that leads to the secondary fight which would add on that silicon valley is getting in their business and you can see where this is going. >> it is interesting that the big giant in the book, amazon, is hardly mentioned. it is focused on what steve jobs did -- you call them five small overtures, but it's five of the six that conspired according to the court. they effectively rose the price of electronic books, making them overpay for the books. >> that is the case against them. to go back to the fundamentals of the case, the argument of the prosecution is that yes, this is bad for consumers and there is clear conspiracy. the argument for the other side is the book industry was threatened, amazon it was going to

[laughter] >> tim cook has said multiple times, we are working on incredible things. did you get any feeling of what they are working on? we all think apple has something up its sleeve, but maybe they don't? >> i think they have everything up their sleeve in terms of what they have tried and what they are asked are venting with. it is a question of what they want to let out of theirs we. -- out of their sleeve. starters, i think that the tv business, the panel business, is a terrible business to be in. that's a lot of analysts are saying tv. ofyou get into price wars low-cost operators. it becomes commodified. then they have to negotiate with all the cable companies. that is its own problem. devices, timrable cook has talked a little bit about it. apple did not create most of the product categories that they moved into. he just created the products that everyone wanted to buy. >> could google come looking really smart here? >> i think it is a smooth move here. it is a big and exciting brand that has a lot of places it could go. , ithey can harness that could be great

. >>> and an abc news exclusive, one-on-one with apple ceo tim cook, tonight here, what he wants americans to know right now about the sweeping surveillance programs and your computers. what's coming next from apple. >>> and

that combined with the other struggles since tim cook took over.re is a lot of pessimism. >> you look great on instagram. nick thompson, ask what you can do -- >> imagine what you can do when it becomes your wallet. >> here is the other question. you can pull up another phone that can do that now. a couple years ago there were things you could not do. >> from high-tech phones to high-tech cars. the auto industry loves showing off. how many of these things make it to the streets? we will tell you, coming up. and, time warner, charter, comcast. we will break down this potential blockbuster deal. ♪ >> this is "lunch money" on bloomberg television. also streaming on bloomberg.com, your tablet, and smartphone. i'm adam johnson. in today's moving pictures, where the video is the story, the prime minister of the ukraine has stepped down. he says he hopes his resignation will diffuse the country's political crisis and put an end to two months of violent protest -- clashes between protesters and police. our slater, lawmakers repealed anti-protest laws put i

apple ceo tim cook is in china to hand out iphones. by the latest partnership between china's largest mobile carrier and the tech giant is so crucial. that story after the break. sphinx as watching wall street watching wall street this morning, futures trading shows all three indexes positive at this hour. the stock market is sputtering again. a day after checking out its first record high of to the of the 14 the stock market lost wrong yesterday in a few retailers posted disappointing earnings. here's a look at the closing numbers. put out of 64 points. the nasdaq added three in the s&p 500 lost 2 1/23 opening bell today essex thirty. smart glasses are so last year grid gogol's new i where is the contact lens. years of total of one of them sitting on the tip of a finger. this contact lens can monitor glucose levels and tears. it's an invention that has the potential to help millions of diabetics who otherwise have to prepare fingers and trough but several times a day in order to check their glucose levels. the new contact lens is just

on the other end of these bactrim, you have tim cook on twitter and he tweets occasionally. the value of executives tweeting given the potential risk that you say something wrong and the potential benefits? >> i think the risks are much smaller than the benefits for leaders who want to affect the public dialogue. especially if you want your thoughts amplified by the press. the -- the press pays the 20 -- the press pays attention to twitter. you go to the party where your friends are. tim cook knows the people he cares about are on twitter and will respond to what he says there. same with mark andreessen. business leaders who want to contribute to the dialogue and affect the feeling and thoughts of their company and themselves will benefit tremendously from being on twitter. it is the de facto place, despite my deep passion about facebook, there's no question twitter is more where leaders talk to each other. there are a lot of reasons that is true but there's no question it's true. >> mark andreessen shares your passion about facebook. he hasn't been with mark zuckerberg from

one-on-one with apple ceo tim cook, tonight here, what he wants americans to know right now about the sweeping surveillance program and your computers. and could i get him to reveal apple's secrets? what's coming next? you heard it here first. >>> and coming home. a personal note tonight about