nasdaq down by 12 if the futures moves hold into regular trading president trump says apple ceo tim cook is a great executive, at least in part because cook calls him on the phone. >> the only one that calls me is tim cook whenever there's a problem, he'll call now the problem was samsung a competitor wouldn't be paying tariffs and tim cook would i have to help him out short-term with that problem it's a great american company. samsung is in south korea. not fair >> so the chief executive of america talking regularly to the chief executive of apple joining me now is elizabeth live in london. so elizabeth, this is not -- this is the latest in a string of meetings that the president has had with tim cook the ceo of apple. they have had a very close relationship. >> they have this is an important business relationship because of apple's stake between the u.s. and china. we know how much they rely on china and we know the latest round of tariffs announced on august 1st goes into effect some analysts said that iphone prices could increase by as much as 10% if apple chose not to absorb the cos

had a very good meeting with tim cook. >> reporter: speaking to reporters sunday as he was returning to the white house, he said cook made a compelling argument about the impact tariffs would have on apple. >> he made a good case, samsung is their number one competitor and they are not paying tariffs all major projects, the iphone, ipad and mac and apple tv would be affected. financial advisor said cook's voice is important we are putting a gigantic important american company at a competitive disadvantage. >> reporter: days before the meeting the president president delayed the tariffs until december, the key shopping season for companies like apple. >> that seems to be part of the president bees strategy. easing up on the tariffs that won't affect the christmas season. it's becoming clear that the key part of the president's re- election strategy is a good economy. >> reporter: the president offering an optimistic economic outlook, coming off oh a week where recession was all the talk and a volatile stock market was blamed on the tariffs, tweet weg are doing very well with china and

i would take your calls, but the only one who calls me is tim cook. whenever there is a problem, he will call. emily: we spoke to an investor across the tech sector. >> i think this president wants u.s. companies to succeed, so i think at the end of the day, this is part of negotiations and just that. it will end in lower tariffs overall. that said, apple has so many interesting things going for it. apple tv, we are learning more about that. apple pay, but they are doing in health care. i think they are also changing the subject a bit. emily: as you consider where to put your money, are tariffs being factored into your considerations of apple in particular? some have said tariffs will never hit apple. but is this something you are thinking about? >> we think about taxes, which is what a tariff is. taxes provide incentives or disincentives. not having a tax is better than having a tax, but we think the services platform that apple is building is going to overcome a lot of this and maybe even speed those services along. emily: let's talk about services.

they clearly seen tim cook gives the message to the market that that's not going to be the case g. that is not the case, you can go back to the fundamentals of this company the incredible buyback program they have and the products that others are citing here it's a company you want to own. >> are we putting off the inevitable of thinking of the impacts on apple right now they have until the 15th picking up the phone and dialing president trump directly because they have such a wonderful relationship according to president. but that's december 15th and how much power will tim cook actually have to call him up again and say you know what, we've passed december 15th we need to go out to march or whatever time frame he has are we sort of delaying, pete? >> well, we have been. we have been doing that. right? we continue to kick this thing a little further out and buy a little time. i think as we get closer to those kind of days, we get into december yes, if there is not something resolved they will work on kick it out a little more. i think the relationship with the president. we talked

president trump seems to think that was a good argument by tim cook.her hand, apple's products are very expensive. the margins are high. there's a way to sort of meet in the middle. apple is able to take in a 10% tariff without much of an impact on its bottom line if it is willing to suffer a little bit of a margin hit. emily: that was samm sacks and mark gurman. apple is getting ready to unveil a new basketful of products. among the devices, three new iphones, upgrade stipend -- upgrades to ipads and largest laptop in years. the main feature of what is called the pro iphone is a camera system that can capture ultra wide angle photos and videos. we caught up with a researcher analyst and tech analysis present bob o'donnell on the news. bob: the wide angle camera is nice. we have seen this on other phones. samsung and others have had this for a while. people will like it, it makes a big difference. that is one challenge with the smartphone camera, so people will like it, but it is not enough. even the other things they are doing to get people excited. t

mark: tim cook has been meeting with president trump and his administration for plenty of times since became president, and this is not a political thing. this is a purely business meeting. it is cook's responsibility to do best by apple shareholders and his company. and that means being able to have easy access to selling products and importing components. you have the tariff situation hitting on september 1 and december 15, and cook needs to do everything to avoid this. he went to the level of saying we are an american company, and these tariffs are going to put us at a disadvantage to a south korean company, a chief competitor. one could think that is a fair argument. president trump seems to think that was a good argument by tim cook. on the other hand, apple's products are very expensive. the margins they are seeing on their devices are quite higher than what samsung is seeing on its products. there's a way to sort of meet in the middle. apple is probably able to take in a 10% tariff without much of an impact on its bottom line if it is willing to suffer a little bit of a margin

that is my guess and obviously tim cook is probably being polite and cordial. he has a policy of engagement even if he doesn't agree with people and so i suspect it was not exactly what was said, but who knows. because i know apple won't say anything about what was said >> right and tim cook, you certainly won't hear him widely call samsung a really good competitor or maybe even mutter the name of samsung at all but i wonder, we were hearing the president talking about mac pro parts and how they weren't going to be exempt from tariffs. i think some investors felt like maybe the president didn't care about apple and the impact of tariffs. this does seem to at least give people a different side, a different look at that relationship or consideration. >> yeah, i mean these parts are assembled here, but they need to be brought in from somewhere else so they will lead to high costs for consumers if these tariffs are in place and so that is the question, how do you -- all kinds of ways do this, but one is not to manufacture these parts in the united states which is n

it seems, though, that business leaders now have the president's ear, specifically tim cook. after that meeting with apple's ceo tim cook, the president said basically that he would revisit the issue. he made a good argument, saying tim cook made a good argument about revisiting the issue of looking at delaying those tariffs. i can tell you right now, $111 billion worth of goods, chinese imports, will be under a 10% tariff starting september 1st, another $156 billion worth of imports will be under that 10% tariff on december 15th. those delayed tariffs include mac book laptops, iphones and ipads, basically everything that apple sells. now, cook says samsung will get a leg up on apple if the tariffs go into effect because samsung production is in south korea, not china. the president saying he will look, possibly think about looking at delaying those tariffs even further. vice president mike pence says the tariffs are a means to an end, not the end itself. >> let me be clear on this point. we don't want china's markets to suffer. in fact, we want them to thrive. president trum

the president says he does he likes tim cook and the reason he said is because tim cook calls him directly the other ceos, they don't call. they just hire multimillion-dollar lobbyists. he likes that one on one relationship and that's why he said he's been willing to consider some of tim cook's ideas. and it seems like apple has really developed some inroads here with this white house as some of the other tech companies haven't done >> watch the switch boards light up then at the white house i can't imagine how many tech ceos -- >> satya nadella on two. >> 4 - >> in terms of the payroll tax does that include the payroll tax? >> i asked him, are you -- >> i'm going to ask you again today. >> this is totally different in tone than what the president said yesterday now to be fair to the president, yesterday he did put some caveats on it and said we're not looking to do all these things right away but we're considering all these various ideas. today it was a definitive no he said no because the economy is so good so the president is arguing now, and this is now a consistent argument that the e

do you think tim cook actually has ability to persuade the president?esident ear but doesn't bend to him every time. tim cook brings up important point look we have to maintain competitiveness and when tariffs impede upon that, it is a point where we have to reevaluate how much is too much, and you know about i would say this from investing standpoint all of this trade and tariff and tax talk prengts an opportunity to buy on the dips pretty much every time, i mean, we've seen apple selloff significantly in bounce back so from an investment stand point it is creating opportunities. >> if you bought on dip last week you did well lou thank you so much for your time this morning. we appreciate it. >> look you can tax my phone don't tax one. that's -- i know. how you feel about that. whew disney lovers listen up to this. the company is on the hunt for its 2020 moms panel this sounds like you. win reverse beginning to run onis is line site thatten plays to do vacation in exchange to get a free trip to disney any destination for themselves and three family mem

the business community isn't good at that tim cook would but ri himself.ss roundtable and wasn't out in front by himself waving a flag when you see jeff bezos getting isolated or looking at harley-davidson with a position on a trade issue is there they had to shut down a factory and open one in europe mary barre shut down% she told both the republican and democratic senators long in advance of a plan. the white house informed that she was isolated and today we see that ford is isolated. that jim hackett is out there by himself. when you're out there by yourself fighting the white house on the ford issue it is basically the auto industry moved on they don't want a rollback in the emission standards in their efficiency. that california and the european markets want to sell into have the higher standards >> yeah. by the way, a fascinating topic. not quite sure how we got there. we have to leave it for another day if that's okay. >> business encyclopedia of jeff thank i hear never, i say now. - [announcer] southern new hampshire university is education made to

david: and it's not just tim cook. a lot of people in silicon valley are now looking to the president, because their concerns are more with regard to europe and their new regulations and new taxes, than they are with china but i just want to move on to retail for a second with you dennis, because you had terrific numbers last week. it seems a lot more than just a flash in a pan doesn't it? >> well, first of all there's no question the consumers feeling pretty good about life. the unemployment rate is down to historic low levels. the unemployment rates are up to historic high levels. people's incomes are rising so there's no question, the retail feels pretty good about life and the retail really doesn't care, is not concerned about the inverted yield curve. it may become concerned about it six or eight months, 12 months from now but that's not the important thing for retail. the important thing for retail the employment rates are extreme ly good and the incomes are rising and that's going to be strong for retail sales.

and hire very expensive consultants in tim cook calls donald trump are.he only 1 -- whenever there's a problem, he will call. >> we spoke to the ark investment management who invests across the tech sector. this president want u.s. companies to succeed, so i've the of the day this is part of negotiations. so manyd, apple has interesting things going for it right now -- we are learning more about apple tv, apple pay. they are also changing the subject. >> as you consider where to put your money, are tariffs being factored into your consideration? some don't believe tariffs will ever hit that low even though there are threats. is it something you are thinking about? taxes, taxesbout provide incentives or disincentives. not having a tax is better than having attacks but we do think the services platform that apple is building will overcome a lot of this and maybe even feed those services. abouthave new details apple, there are new trailers out for some of the shows, and of course netflix is the gorilla in the room,'s darting at seven dollars a month. we don'

>> yeah. >> all right moving on, president trump told reporters yesterday that apple's ceo tim cook isreat executive, quote, because he calls me and others don't. the two appear to share a warm relationship cook was at dinner in bedminster with trump just last week in new jersey the interesting thing to me about what the president said was he didn't just say that he appreciates tim calls me why doesn't everybody else do this, too? >> don't you think this is making companies who invest in as the president put it the very expensive consultants rethink their strategy, if they know that the chosen one will pick up the phone? i mean, if -- that's his words >> to give him a call? and i understand there's pushback, especially silicon valley companies, big tech, employees hate trump but for apple, it's not like tim cook has gotten a bunch of blowback on this >> tim cook has said, i've heard him say this, he can call donald trump because donald trump answers the phone. he has tried to call president xi in china, but he doesn't answer the phone so it works both ways. you know, there might be ceo

if you are tim cook, you are probably putting your head in your hands. are you thinking about plan b? >> plan b is complicated. one thing i want to emphasize is it gets overlooked during days like today. china is an opportunity for apple. contemplate plan b, this is 17% of the world's gdp. maybe that declines, maybe it increases. pass, germany, france, right around 5%, pretty big step down. ,ny plan that is in the mix that is one of the things that tim cook has been brilliant at, this ability to manage the company over a decade, and i think that ultimately that is the plan b, so what does that mean -- i don't think it means a retreat from china. i don't think it could mean some diversification in terms of manufacturing. but i think they will continue to work aggressively to sell products in china. emily: what about the companies that aren't apple, that don't president? with the which companies are they and what are they doing? >> absolutely right. chipmaker.ike the of 5gs an essential part phone networks. government decides to go after that company that

president trump said over the weekend he met with apple ceo tim cook and discussed planned increased tariffs on chinese goods and how it would impact the cupertino-based tech giant. >> i had a very good meeting with tim cook. >> reporter: speaking to compelling argument about the impact tariff would have on apple. >> one of the things and he made a good that samsung is their number one competitor and is not paying tariffs because they're based in south carolina. >> reporter: in contrast, apple reports all of its major products including the iphone, ipad, mac, air pods and apple tv would be affected by the tariffs. financial adviser james mcbride says cook's voice is important on the world stage. >> what i think tim cook was saying is we are putting a gigantic very important american company at a disadvantage with one of their largest competitors. >> reporter: the president delayed the tariffs set to take effect september 1st until december, the key shopping season for companies like apple. >> that seems to be part of the president's strategy, to ease up on the tariffs so it won't aff

also we heard from him on tim cook i asked the president whether he has a better relationship with tim cook than he does with some of these other silicon valley executives he said he does, and here's why. >> the only one that calls me is tim cook he calls me whenever there's a problem, he'll call. now, the problem was that samsung, a competitor, a good competitor wouldn't be paying tariffs and tim cook would i got to help him out short-term with that problem because it's a great american company samsung is in south korea, not fair >> reporte >> reporter: the president saying i've got to help him out short-term with that problem that is tariffs. the president's own tariffs. so the president's telegraphing here that he's looking for some way to help apple out vis-a-vis samsung and its competition in terms of the president's tariffs. how is that going to work out? i don't know does he have something in mind more than just kicking the can down the roads 90 days to december that he's talked about. not entirely clear from that conversation the president did say that that personal relationshi

financial adviser james mcbride said cook's voice is important on the world stage. >> what i think tim cook was saying is we are putting a gigantic, very important american company at a competitive disadvantage with one of their largest competitors. >> reporter: days before the trump/cook meeting the president delayed the tariffs set to take effect september 1st until december to keep shopping season for companies like apple. >> that seems to be part of the president's strategy is to start easing up on the tariffs so it won't affect the christmas season. it's becoming increasingly clear the key part of the president's reelection strategy is a good economy. >> reporter: the president offering an optimistic economic outlook coming off a week where recession was all the talk and a volatile stock market was blamed on the china tariffs tweeting, "we are doing very well with china and talking." >> the money is pouring into the u.s. like never before and like no other country has ever experienced. >> reporter: the president banking on the economy and the run-up to the 2020 election. >> i think the

what do you make of tim cook's approach?athie: i think this is good news for apple, for technology. emily: the president has the -- denied some of apple's formal requests to give a tariff reprieve on the mac pro, for example. how much do you think these tariffs are actually going to impact apple given that starting september 1, we are supposed to see tariffs on air pods, apple watches, etc.? cathie: i am glad there is a dialogue and i think this president wants u.s. companies to succeed, so i think at the end of the day, this is part of negotiations and just that. it will end in lower tariffs overall. that said -- apple has so many interesting thing going sport -- going for it right now. apple pay, what they are doing in health care. apple is changing the subject of it. emily: as you consider where to put your money. are tariffs being factored into your consideration of apple in particular? others have said tariffs so -- will never hit apple even though there is a threat. is this something you are thinking about? cathie: we

this conversation president trump had over dinner with tim cook of apple, says cook came in and madecalled a very compelling argument against tariffs. so that -- >> look at apple's stock. last time we checked it was up better than 2.5% because every person who owns apples like okay, fine, apple just got an exemption. listen, tim cook is an amazing business leader, right. he's definitely talking, saying okay, you can't sort of look the other way. my competitor samsung, major competitor, does all their manufacturing in south korea, it's not fair, and the president seems to go along with that. i don't know. i think the question is okay, is apple an exception, justifiable exception, what does that mean for other companies. there are many people who say okay, apple deserves that pole position, they deserve special treatment. connell: one thing for tim cook to talk his own book. i was wondering if he was talking on behalf almost as a representative of some small bicycle company or some other company that wouldn't have that same access and voice with the president, or is he just speaking fo

that's an unbelievable buyback story. >> you know who should get credit and doesn't is tim cook has done a great job and on design, johnny ive, but carl icahn really forced tim cook to get some religion about shrinking the float and that took place at a time when apple and many other technology giants were reticent about buybacks and really capital allocation is very far from what they were thinking about on a day-to-day basis, always thinking about innovation and product cycles and all of that makes sense for them to think about but i do think that icahn desks a lot of credit for starting that process and now that that process has started and not really a factor anymore, what tim cook and the gang have learned is that there are going to be years where apple doesn't have the hottest, new phone coming out at the right time to satisfy shareholders but they could buy in 5% of the float and make up for that and they've done it and i think it's worked really, really well to get you through those gaps whens there isn't a hot, new apple product coming out which i think we can agree is the perio

increased tariffs on goods and how it would impact the tech giant. >> i had a very good meeting with tim cook>> reporter: speaking to reporters sunday as he was returning to the white house, the president said cook made a compelling argument about the impact tariffs would have on apple. >> one of the things he made a good case is samsung is their number one competitor and samsung is not paying tariffs because they are in south korea. >> reporter: apple reports that all of its major products including the iphone, ipad, mac, air pods and apple tv, would be affected by the tariffs. financial advisor james mc bride said cook's voice is important on world stage. >> what tim cook was saying we are putting an man company at a competitive disadvantage. >> reporter: days before the meeting the president delayed the tariffs sent to take effect september 1st. >> that seems to be part of the president's strategy is to start easing up on the tariffs that won't affect the christmas season. it's becoming increasingly clear that the key part of the president's re-election strategy is a good economy. >> repor

be an and to the turmoil the matter how many times ceo tim cook phones the president. iconicne of inventors from silicon valley, who cofounded apple. steve wozniak. that introduction barely does you justice but for the sake of time, we will leave it there. when you think about where we are in terms of trade, tariffs, tweets, given your multi decades of experience, how do tensions feel now compared to previous years? steve: my experience is not in political areas or economics or finance. i have opinions. people might come to different conclusions of whether tariffs are a good idea, bad idea. both people would go down a line of thinking that is logical and connected. thatn't have a mathematics prove one thing is better than the other. we just have opinions. i myself will fall into the camp that i want the free market to rule. a come from my home background. my background was very compatible, growing up in silicon valley, where more than half the people speak non-english. cooperation for the competition. i put on a huge festival and in 82.million tickets we put out a whol

you have the tariff situation and tim cook needs to do everything to avoid this.y are going to put us at a disadvantage to a south korean company. one could think that is a fair argument. president trump seems to think that was a good argument. apple'sther hand, .roducts are there's a way to sort of meet in the middle. apple is able to take in a 10% tariff without much of an impact on its bottom line if it is willing to suffer a little bit of a margin hit. emily: we haven't gotten a statement or readout on the meeting from apple but we should wait and see. the deadline for the tariffs to start is september 1. that would hit potential iphone tariffs coming in december. thank you both. foe.g up, finding a common for trump and tech, it is french president macron. why they say no way to france's new digital tax. we are livestreaming on twitter. check us out @technology. this is bloomberg. ♪ emily: one of the largest cryptocurrency exchanges wants to compete with facebook. to partneres looking with other exchanges and governments to create new digital currencies to tak

president trump and apple ceo tim cook sat down for dinner friday night at the president's golf club ister, new jersey the president saying cook made a, quote, good case about how a new round of tariffs could hit some apple products and could set the company behind in competition with its south korean rival samsung take a listen. >> it's tough for apple to pay tariffs if they're competing with a very good company that's not. i said how good a competitor he said they are a very good competitor so, samsung is not paying tariffs because they're based in a different location, mostly south korea, but they're based in south korea and i thought he made a very compelling argument, so i'm thinking about it. >> now you remember south korea and the u.s. struck a trade deal last year while apple meanwhile still relies heavily on production and on sales in china. apple's stock has been on a roller coaster since president trump threatened additional tariffs on 300 billion dollars worth of chinese goods, including electronics. samsung is the biggest smart phone seller in the world, it captures about

others go out and hire very expensive consultants and tim cook calls can donald trump directly. pretty good. >> mr. trump's praise comes just days after he met with apple's ceo tim cook at his new jersey golf club. the two reportedly talked how tariffs made on goods inside china could give samsung an advantage over apple. the president postponed the tariffs which would have levied a 10% duty on iphones. >>> while the president praised cook he called out auto executives on twitter labeling them as foolish for considering bucking his administration's proposed role back of emission standards. his criticism followed reports that several automakers including honda, forward, volkswagen and bmw have signed on to stick with the stricter emissions sets by california. >> a car recall to tell you about. >> 7 on your side's michael finney will tell you more about it. >> >> toyota is recalling 14,2019 rav fours because of an issue with the rearview camera. the nhtsa says the camera may not work when the vehicle is put into reverse. backup cameras are federally mandated. it affects rav 4 and

a quick check on apple shares because tim cook and donald trump did speak, and tim cook made the caseh the tariffs on apple products coming into effect, at least for now in mid-december. you are looking at apple shares rising 1%. bank of america, another stock we are keeping an eye on. banks deal with lower interest rates with all of these bond yields. we want to mention as well that they can america ceo spoke exclusively to bloomberg. we asked about the recession and process of recession, i should say. loways recession risks are as spending remains strong. >> we have nothing to fear about a recession right now except the fear of recession and you are seeing a lot of people look ahead and say, a trade war continues. if this doesn't get solved, you can see this finally getting to the consumer confidence, which is actually the critical thing to maintain. ♪ ♪ >> this is bloomberg surveillance. from london and new york. , we talked ak little bit about trade, china, brexit. what we did not talk about was the emerging markets. investor, you will hang onto jay powell's every word this week.

i think tim cook is arguing hey, you know what?ll the september 1st tariffs, find a way to push them a little bit further. i personally believe that will happen. i think maybe president trump can latch on to the cook argument for making it happen. what do we need to see from china? they haven't made any real concessions lately? >> secretary mnuchin put it very astutely. he said that in may we were 90% of the way there with u.s. trade rep bob lighthizer heating the way. beijing backed off. charles: they don't want to completely change -- we're asking them to make major changes the way they run their country. maybe the deal happens in bite sizes. what is the next small morsel, $500 million worth of soybeans? what is something we can say okay, they really want to negotiate, we're heading down a path ultimately gives us a final solution, something that really works for everyone? >> i think soybean purchases. large tranche of agricultural purchases what they promised initially. stopping the sale of fentanyl to the united states. that is

it's estimated tim cook's wealth is about $675 million. but before we go, a quick look at the markets. asia is trading higher as there's a cautious optimism that the us and china will head be to the negotiating table — and perhaps get closer to a solution to that trade war. we've seen a lot of ups and downs in recent days as investors react to president trump's changing tone on china. the word ‘calm' was used a lot on monday and tuesday and that seems to have had a knock on effect. up next — newsbriefing. we'll take you through the stories making headlines in the global news media today. the bbc has seen documents which show that the uk government and hs2 knew — several years ago —that the new high speed railway was over budget and was probably behind schedule. our transport correspondent tom burridge reports. wright until very recently, we were told by ministers and bosses at hs2 that the programme to build the new high—speed railway was on budget and on time. there was only one budget for hs2 and it is £55.7 billion. on time. there was o

i think tim cook though, being a very important economic force in the united states, i think tim cookually gets the president's ear a little bit and can warn him, this might be bad. if we suffered in a balance of trade with more expensive products, none might weaken the balance of trade. that is an important thing to think about. that would be scary if we lost sales just because of that. taylor: steve wozniak, you will be sticking with me because when we come back, we will take a look at the transformation of the company you cofounded, apple. that is next. this is bloomberg. ♪ taylor: an update to a story we discussed earlier. former uber engineer anthony levandowski has pleaded not guilty to charges of stealing driverless vehicle technology from alphabet's waymo unit. the indictment adds a new criminal chapter to the saga surrounding waymo's civil claim. the imac, the iphone adjustment the products that became household names thanks to apple. but are things changing as apple shifts more money into the services sector like credit cards and apple tv plus? analyst dan eyes -- ives sure

let me throw out one more thing at you guys, and that's the president's dinner conversation with tim cookhe came out from that and said tim cook made a very good point and strong case about what samsung actually may be benefit, south korea's samsung may be benefiting because of this trade war. how do you add that into the calculus ? what does that mean and eamon, we'll start with you. >> so fascinating to hear the president talking about apple paying the tariffs, insisting that he's not paying the tariffs and apple is paying the tariffs, and now the president is saying apple is paying the i was so tim cook was able to get and the question is whether there's any action behind it we don't see anything on the way from the president but they got him thinking about what they would be saying and talking about this issue. >> what would some action look like, some things that could assuage the problems or the concerns >> i know that's a great point by eamon i just want to say that if the president truly sided with the real super china hawks and the administration, what he would have told tim cook

they want to fight trade, we're prepared to fight trade. >> and during their latest earnings call, tim cookid -- i was about to say tim apple tim cook did say in their growth in china was strong. the question is as this trade war does become prolonged as it appears to be, you know, will the chinese consumers start to turn off from apple in the way that they have for other products? >> huawei's picked up a lot of markets here >> that could put a big dent in demand as well >> and by the way, it's not just apple in terms of the retailers that could be hit hard by these tariffs. here is the ceo of columbia sportswear calling these tariffs a disaster for our economy saying they will force retailers to raise prices on products. then the footwear industry, lauren thomas, come on down because there are some amazing little nuggets in your story why is footwear in particular so hard hit >> and i hate to be the barrier of bad news. >> were those shoes made in china by the way [ laughter ] >> i know, i should've changed but, yes, no, footwear and even more than apparel. you said about 70% of footwear i

is tim cook just got a reprieve if july sales are as good, what's a bear. a bar code that's zebra, novocure, a friend of mine got a few more users because of a drug they have for brain cancer. >> we'll see you at 6:00 apple up more than 5% and we're up 400 don't go away. complicated, you know?feels too well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step by step until you're comfortable. i could be up for that. that's taking options trading from wall st. to main st. hey guys, wanna play some pool? eh, i'm not really a pool guy. what's the hesitation? it's just complicated. step-by-step options trading support from td ameritrade >>> good tuesday morning welcome back to "squawk on the street." i'm cart quintanilla it's been an eventful hour of trade. watching the spread, ust comes out delaying tariffs until december and with that the dow up a quick 400. >> a lot of optimism to go along with the move in the market. our roadmap st

tim cook is the president's right now. what does it mean for apple? the shares are down 4.5% today and autos are dropping as china threatens to resume tariffs on that sector. we'll talk about all of it next. and tesla down nearly 4% "the exchange" is back in two. do you have concerns about mild memory loss related to aging? prevagen is the number one pharmacist-recommended memory support brand. you can find it in the vitamin aisle in stores everywhere. prevagen. healthier brain. better life. >>> welcome back with the dow down 507 points, let's catch you up on a couple stories that should be on your radar today. it is time for "rapid fire." here to break down the headlines, john from miller value partners joins us along with cnbc's morgan brennan, bill griffeth and kate rogers it's great to have everyone here it does look a little like a game show setup. that's for another day, definitely not today >> we are not playing games today. >> no, we are not. markets have been whipsawed all morning and afternoon by this ongoing trade war with china it really b

i'm asking right here on fox news, please, president trump, you have met with tim cook. to meet with joe shame shamie. i would like to talk to you about the safety of your grandchildren, the safety of the grandchildren around the world. i would also like to give out the family business we represent, three generations are in this business and what we have done and the nearly 400 employees we directly employ. president trump, i'm begging to meet with you, any time, anyplace. please. ashley: he's on a plane right now coming back from france. maybe someone will pass that on, joe. what percentage of the materials that you get from china, i mean, you put together children's furniture. how much comes actually from china? >> so on the cribs and bassinets and beds and so forth, they come in complete, 100% from china. ashley: 100%. >> 100%. on the mattresses, we manufacture those in america, right in wisconsin. those mattresesare taxed. here's another kicker. we are trying to expand our production and buy new machinery and that machinery is coming from china which is supposed to b

but the reason i speak to tim cook, he is the one that calls me. the other ones don't call. they go out and hire, for millions of dollars, consultants that have less power than you d do. >> reporter: are you saying they are to salute israel? is that anti-semitic connect >> president trump: it's in your head. it's only anti-semitic in your head. if you look at -- aoc plus three, if you look at what they say, they are so bad for israel. they are so bad for jewish people. you take a look at the horrible anti-semitic statements they've made -- all of the eighth, almost $4 billion. all of the aid cut from israel. you take a look, the democrats have to own. and i say this, everybody that votes for a democrat, t that. it's very bad for [indistinct] >> president trump: you're going to find out. >> reporter: does honk honk give you leverage? >> president trump: i don't view it as leverage. i hope hong kong works out in a very humane way. i don't view it as leverage or not leverage. i hope it works out inhumane way. i think president xi has the ability to make it happen. >> harris: an

president trump heaps prize on apple's tim cook. >> b.a.r.t.nd stations clean. >> a >> can you believe our a's going for a sweep of the, you can say the best team. they have the best record in the american league. the yankees. let's sends them out of here with a sweep. how about that? 6:37. 73 is the temperature dropping down to 65 by the time we get the brooms out. >> thanks, mike. veterans with disabilities now don't have to worry about student loans. president trump signed an executive order at the am vets conference in louisville. it will forgive all student loans for permanently disabled military vets. it should help more than 20,000 veterans and cancel an average of $30,000 debt per person. >> president trump is praising apple ceo for one specific reason. take a listen. >> that's why he's a great executive because he calls me. others g and hire very expensive consultants and tim cook calls donald trump directly. pretty good. >> mr. trump's praise comes days after he met with apple's ceo at his new jersey golf club. the two talked about ho

. >> not every ceo out there is tim cook. >> not everyone is tim cook, but they're going to have to investhrough terrible environments, good environments and mediocre environments. >> if you look at the rest of the world and how the market responded last year, same thing was going on we went through the summer kicking butt against the rest of the world. the trade turned suddenly in october when we started to see data points in this country. the fed was part of it some sense that they -- >> the fed was all of it. >> well, it certainly played a ro role. >> we had weakened earnings and conference calls that caused concern there. >> yes, but it was trade and the fed, and then the fed really -- >> and data points. >> yes. >> anyway, to whistle test the graveyard in this and say we're totally immune is -- i know it is a global economy and not as global possibly, we are a lot more immune. i think that core inflation is printed north of 2% for eight or nine months in a row we do have inflation in this country. to think it won't feed through to products, a lot of the retailers have been eating it.

earlier, isspoke mentioned steve jobs and it was tim cook, tim cook visited with trump. lot of companies are shifting their supply chains, it is not an easy process, but we saw crate & barrel say they are doing less sourcing in china. imports from vietnam into some of the ports here are up. so we do see signals that maritime trade ties are changing, but these are deep relationships built over time. just to say companies can start changing productions lines -- production lines are sourcing from different places is too simplistic at this point. and also, the trump administration ultimate goal that companies are going to set up shop here and reshore all their production is also tough to imagine. wages here are pretty high, there is a cost to setting up your production here as well. so we are still seeing how it plays out, but now it looks like there are shifts from china to lower-cost places in southeast asia. emily: bloomberg's sarah mcgregor, following the trade dispute with us, as well as gene munster. gene, you are sticking with me. staying on apple, 14 point $4 billion

emily: the earnings call has begun, apple ceo tim cook speaking right now, saying he is thrilled to report return to growth. dan, you own a couple hundred thousand shares of apple. how concerned are you about this tariff issue? dan: the tariff issues as max was saying, it is kind of a double whammy in regards to shipping phones assembled in china back to the u.s., then you have the trump administration. then you have things like glass covers, sensors that are shipped into china that could be potentially on a tariff watch with the chinese government. and the big question going forward, and maybe max can talk a little bit about it too, is what does apple do? do they try to raise prices, which they already have extremely high average selling prices compared to the competition, or do they just absorb the tariffs into their profit margins, and how does that work into like the international expansion theme, where you have annual average incomes in india and china that are a fraction of what they are here in the u.s.? so, it does create a conundrum for apple going forward. it is definitely an iss

but now help is on the way from apple ceo tim cook. he tweeted this quote it is devastating to see the fires and destruction ravaging the amazon rain forest. one of the world's most important ecosystems. apple will be donating to help preserve its biodiversity and restore the amazons indispensable forest across latin america. help is also coming from the sacramento-based supertanker. the modified 747 is flying to drop missions over bolivia. the supertanker is being dubbed the next generation air tanker. it could be sent anywhere in the world in under 20 hours. the raging wildfires became the focus of discussion at the g7 summit in france. world leaders agreed to a $20 million fund to help brazil in the firefight. brazilian president is also sending about 40 thousand troops to the area. to battle the flames. nearly 10,000 new fires have been reported the past few days. many are believed to be intentionally set by farmers clearing land. >>> leonardo dicaprio's foundation is donating a bunch of money for that firefight. >>> they give off

it's estimated tim cook's wealth is about $675 million.bal expansion — ferdinand piech — has died aged 82 — according to the bild newspaper. mr piech is credited with transforming the carmaker from a midsized german company to an international powerhouse. piech was a grandson of ferdinand porsche, the father of the iconic volkswagen beetle. during their g7 meeting, donald trump and india's prime this minister narendra modi had weighty matters to discuss. not least, the trade deficit between the two countries. india pledged to boost imports of american—made goods. let's take you live to delhi, our correspondent nitin srivastava is there for us. it is interesting, the meeting yesterday, lots for them to talk about it. president trump only interested in trade. yes, it is a significant move for both countries, despite india and the us being prominent trade partners, there has been a strain in the recent past about economics and trade. president trump has repeatedly said and asked india to withdraw high tariffs on us goods. so, this move and af

you know, it was tim cook's sunday night meeting with donald trump that almost changed the rhetoric onuawei's treatment so you have this sense that there is a pipeline going on back and forth of really understanding the business dynamics i'm not losing my mind on apple here. >> i mean trump actually said he had one of the best relationships with tim cook. >> yes. >> does it offset concerns you might have in terms of the impact on apple in the trade war? >> a little bit. you go back to the point if china wants to make a statement. it is a pretty good one to make a statement with i'm long like tim, i'm long but nervous about it. >> as the president has shown if you have a good relationship that stays that way? i don't think so. >> the recession is now with the consumer the recession could be a manufacturing recession. i think apple fits into the bucket of a consumer-driven name it is up 30% year-to-date. i feel better at least he has a rapport that he can talk to him. will it mean a lot of difference on the macro no but incrementally it could change it for them i'm still on the name. i p

, even before steve jobs left, tim cook was a master at producing devices. knew who he was. everybody knew who the rest of the management team was. at tesla, it's still just elon and this is a huge company even if he stays ceo and he can do whatever he wants, doesn't actually have to do anything, you need to build up more folks on the management team who investors know and trust and who are consistent and who deliver on what they say they're going to deliver on. >> you've been saying this for years. he needs a strong number two but i don't hear you saying that another large player like volkswagen might be interested in buying it at this stage of maturity >> well, buying it i mean, they want to invest. it's not -- volkswagen presumably has a huge chunk of cash, sticks them into tesla, you get a nice look at batteries. strategically, why not take a look at that that's not a big deal. buying the company would be a different thing. i don't think anybody was speculating about that >> why do you think there isn't, i guess, sort of a bigger, more prominent circle o

will conversations with tim cook help apple's case on trade?er of google deepmind is placed on leave. what is next for the high-profile intelligence