so the vmware part is their differentiating element.ut i don't think that you can underscore he has to clean it up, make it into a company that is not quite did as disorganized i have they have to get in a position where they can be aggressive >> yeah, tough to figure out still three publ figures public. and tesla reaching hit production goal. elon musk writing that i think we just became a real car company, that in a congratulatory memo to employees. roger, the need to sustain this 5,000 sccar a week pace of cour to beas profitable as he wants to be, how significant is it that he has hit this mark at this point >> well, i think all of these metrics really matter that we've talked about this before, the success of tesla has been in building this magnificent brand. and they have really not demonstrated until very recently even a commitment to becoming a professional manufacturing firm. and manufacturing is really hard it requires a different set of disciplines than the ones that made tesla successful to this point. to me 5,000 is an amaz

. ♪ >>> last week the stock of vmware, one of my favorites, caught fire.urging from 147 to 162 in a single session while it's pulled back nine point since then we need to address what's happened here i like to call vmware one of the kings of the cloud, because this cloud infrastructure and virtualization company has pioneered so much of the technology that makes data center so useful that's why it's been such a terrific performer over the last two and a half years, this stock has more than tripled. vmware is a publicly traded subsidiary of dell, and dell is planning to come public again via a very complicated transaction. a lot of people worried that vmware would get subsumed in dell investigators didn't want that it deserves to stand on its own. when we found out vmware could keep its pseudo independence, let's call it that, the stock soared higher, even if the company does have to help dell pay for the transaction of $11 billion. all shareholders participating now we don't need to worry than dell connection, you know what we're going to do? we're going t

it will continue to own 81% plus of vmware. the transaction happen vmware it will, of course, be creating a public equity that will be a true public equity of dells. not a tracking stock of vm or anything along those lines will be listed here on the nyse. so following the close of the deal, current holders of this tracking stock, they'll own about 20.8% between 20.8 and 31% of dell technologies depending on how many elect cash silver lake will own 24% now of deal and will be going down to what could be, let's call it 16 to 18%. and michael dell, will continue to be the chairman and ceo of the company who is joining us about 20 minutes from now will beneficially own between 47 and 54% of that stock. so, yes, public company but still complete control for mr. dell i'm sure is a force to him as he makes long-term decisions for the company. >> and a big public company, which, in a way that was unusual it was private at this scale that the company reached now the one you can say for sure as the company is putting it will simplify thi

they are leveraging vmware as much as possible.has a lot of credibility among companies that one to more modern infrastructure when we think about i.t. public comes to the clouds, dell probably will not see their explosive growth and, should we see the i.t. spending environment, cut back a little the hardware vendors, dell's stock will take a beating. brad: nico grant and brooke sutherland, thank you both for joining. maker up, e-cigarettes jule is seeking more than a billion dollars in its first funding round. we talk about how traditional tobacco fate and they are expanding. remember to tune into the boston fireworks special this fourth of july. you can watch it live in the u.s. at 8 p.m. eastern right here on liberty, listen along on bloomberg radio, or catch it anywhere on bloomberg.com. ♪ brad: electronic cigarettes jewel labs is raising $1.2 billion to target the global meeting market. that's according to people familiar with the matter. the company is valued at 15 billion making jule more valuable than some silicon names --

they pushed hard for that and were very vocal and wanting vmware to remain an entity they could investn as a standalone. that, it is not the best outcome for all involved. i think this is more of an intermediary step. it helps them simplify the structure but does not go far enough in my opinion. vmware -- as much as push backrs wanted to on being a part of dell but it is a part of dell and a majority shareholder, it calls a lot of the shots of the company and most docs with that dynamic trades at a discount. dell we heard michael singing the praises of being a private company law long ago, what changed? nico: he was singing the praises in april of being a private company. what has changed, if we consider the timing, comes five months after dell said it was considering the strategic options and about five years after they started the turnaround, when it decided to go private. it's all the hardware landscape was changing around it and needed to figure out how to catch up. it saw the easiest way to do it with the least amount of scrutiny possible. michael dell is feeling more confident th

>> meanwhile, vmware, the dell story, up almost 10% >> have been flying right on that big story >> with that, over to michelle caruso-cabrera with the half >> and welcome to the halftime report i'm michelle caruso-cabrera. stocks down today across the board as investors ask themselves are we in a trade trap with us today, joe terranova, jim, josh and steve weiss guys, thoughts on the first trading day of the second half of the year what do you think about second half >> not going so well so far. i don't know >> going to get better, worse? >> there's a few days left in the second half, so we can only hope >> it's gotten better over the first day. >> not so bad this hour. >> and the economic news continues to be good ism was strong it's the rest of the globe you have to worry about. mckau games and the chinese figures not as strong. u.s. remaining strong and what does that lead us for going forr ward this clearly is about amazon, microsoft, apple the big names. if you take those top six technology companies they've accounted for 84% of the overall gain in the s&p so far year to date >> ye

stake in a controlling the -- vmware.f people thought it would also acquire them or combining in this process and it is not doing that. vmware will remain a publicly traded, somewhat independent entity. dell is a master of some kind of financial innovation. financial innovation, engineering, whatever you want to call it, there's a lot of moving pieces that new. it's more a means of consolidating different parts and interest in dell's empire. lessening the complexity and a realization the structure they have was intermediate, it wasn't meant to be a long-term viable structure. what this will do is not necessarily mitigate that. they have to figure out how exactly the deal with that. also tax law changes that are morededucting significant death it's not an answer yet of how they will fall back. it seems to be the best outcome in terms of satisfying vm holders who wants to be independent but in terms of dell, it will be a convoluted structure. just the need to sell the story to investors. prettyhe backdrop is upbeat. a stron

what they are doing as they are buying their tracking stock for vmware.them to do as part of this process. don't see how this full buyout of the tracking stocks also their problems. they were looking at these types of transactions because they have this hefty debt load from their buyout with silver lake. this doesn't necessarily solve that. the benefit of doing these series of transactions was to take advantage of vmware's balance sheets, and they are not doing that. ♪ results, a little bit short of the bar. tell us what you think could have been behind this slight earnings miss. inas management warned back april when they had a call for earnings, they said they would spend more on marketing. the shipment has not been as good as anticipated. millionr, they ship 40 , probablyore the s9 missing targets. couldn't even ship 30 million this year. business was anticipated, ishough we did see that still below what we have been talking earnings. that is why, sentiment wise, it is not that good. but the company may come out in three weeks time with more guidance o

they are not buying vmware, which a lot of people expected them to do as part of this process.how this full buyout of the tracking stocks really solves dell's problems. they were looking at this because they had the pesky debt load from their buyout with silver lake. this doesn't necessarily solve that. the benefit of doing these series of transactions was to take advantage of vmware's balance sheets, and they are not doing that. >> out with the initial results for the second quarter. a little bit short of the bar. tell us what you think could have been behind this slight earnings miss. >> as management warned back in april when they had a call for first quarter earnings, they did acknowledge that they would spend more on marketing for the galaxy s nine. shipments have not been as good as anticipated. last year, they ship 40 million s8 models before the s9, probably missing targets. they probably couldn't even ship 30 million this year. so i think the miss was well anticipated, although we did see that it is still a little bit below what the recent talk for earnings. that is wh

announced on monday will give michael dell and his financial partner silver lake greater control of vmware already controls. tesla's heavily—shorted shares rose as much as 6.4 percent in early trading monday. but after several analysts questioned whether the electric car maker would be able to sustain the model 3 production momentum, shares ended up losing 2.3 percent at the close in new york. that's it for the business briefing this hour up next — newsbriefing. police on the scottish island of bute are attempting to piece together the last movements of a 6—year—old girl whose body was found in woodland yesterday. officers are treating the death of alesha mcphail as unexplained and are keen to speak to any of the islands residents who joined the search after she was reported missing at around 06:30am. 0ur scotland correspondent reports from the island. ales ha alesha mcphail was reported missing on the island of bute early yesterday morning. a few hours later, the six your‘s body would this covered by a member of the public in woodland where police have since been carrying out detailed inv

bant, former coo at google cloud and pat gelsinger, though gelsinger tweeted i love being ceo of vmwarese. the next ceo, whoever that might be will have to deal with som real complex challenges like manufacturing issues that the hcompany ising with its next generation processors that promise bettererformance with lower power usage. there's also increasing competition fro rivals like nvidia which is trading pecialized chips for new hot areas like artificial intelligence. ifss intel can addhose manufacturing challenges while maintaining its dominant position in pc and server chips andnt diversifying potential growth areas like artificial intelligence and autonomous cars, investors may cheerom er is in the corner office. for "nightly business report," i'm josh lipton, santa clara, california. >>> mnwhile, fellow dow component inco component mcdonald's was dean a setback w judge had a proposed settlement in a case that could have major implications than nothing less than the american franchise business model. in respons the stock fell more than 1% today. kate rogers has details now on this

let's look at a bright spot we have shares of vmware and del technologies.rading higher. this is on the announcement that dell is buying back the tracking stock $21.7 billion. originally, it was used to fund their $63 billion takeover of emc. all of this paves the way for them to trade up a public -- as a public company. finally, we have weakness for the department stores. if we take the look -- a look at me susan cole calls, declines more than 3% on pace for the worst day since may. by oliver chened on nordstrom, basically saying that the earning potential is not great. he cut his price target to $51 from $56 p we see the shares at $50. a good call there. taking the department stores with it. david: thank you. for bloomberg first word news can we turn to mark crumpton. mark: thank you. a provincial governor says all 12 boys and their soccer coach have been found alive in the cave where they went missing over a week ago in northern thailand. quotes theted press official as saying they have found them safe but the operation is not over. rescue crews have been

. >>> and dell has agreed to buy back its own tracking stock tied to vmware. the deal values dell between 61 and $70 billion. the deal allows the computermaker to return to the stock market without listing in a traditional ipo. the company was taken private in 2013 dell founder michael dell outlined the changes that had taken place since taking the firm private >> in the last five years, a lot has changed. we transformed the business, become the essential infrastructure company, changed the profile nature of the company in terms of our capabilities, a broad set of capability the across the data center, software defined everything 85% of our engineers are software you look at our business last quarter, it grew 17% in growth earnings were up strong double digits this was about simplifying our capital structure, and exposing the value that we created to shareholders >>> bitcoin has started the second half of the year in resurgent form rebounding 12% after falling below $6,000 bitcoin is down 50% year-to-date, it's been a dramatic decline from early 2018 levels wh

gelsinger responded on twitter to say, thanks for the shout-out, john ford, but i love being ceo @vmwaret going anywhere else. he violated company policy by having a relationship with a coworker the next ceo, whoever that is going to be, will have to deal with complex challenges. one, manufacturing challenges with its next generation processe processers, so-called 10 nanometer chips. and they have been make iing moe processer processers and two, increasing competition from rivals like nvidia and amd. still, patrick morehead says intel has plenty of advantages of its own it's still a dominant powerhouse in the core market and is expanding into new markets that investors care about, like ai and self-driving cars. guys, back to you. >> i did say they should probably talk to him i didn't go so far to say he was a good pick. that could be a little outside of my area of expertise, josh, but as i look at intel's stock over the past year, remember, the spectrum meltdown and stuff was an issue at the beginning. it's actually a bit higher i wonder if analysts feel that intel can hold on to its adv

michael dell wants vmware to remain an independent, public company. >>> casino stocks taking a tumbleer macaw gaming revenue fell short while revenue did increase by 12.5% year-over-year, analysts had expected a rise of 17-21%, so that was a miss. shares of wynn, mgm and las vegas sands all down, wynn resorts down 8.5%, and mgm also down more than 3%. >>> well, he may not be back from his italian vacation just yet, but charlie gasparino has sent us the latest in the bidding wars sister fox business' parent -- for fox business' parent company. according to gasparino, disney bankers are growing increasingly confident that comcast not issue a bid for all of 2 21st century fox due to concern over shareholder leverage and price the d. of justice has already ruled in favor of disney's bid. we will bring you any updates on this story as they happen. >>> now to the white house. the pro-business president being challenged directly by america's largest business group. the u.s. chamber of commerce launching an anti-trump trade offensive today complete with a web site called the wrong approach.co

there are a number of companies including vmware, ibm that have at least managed to hold them at bay well >> very knowledgeable on all things servers and amazon. >>> meantime luxury car maker aston martin could be gearing up to go public soon and the new suv that will be hitting the roads next year. phil >> reporter: yeah, sara, can you hear that? oh, boy, if you love ultra luxury performance automobiles this is the place to be we are at the headquarters in england. sets you back a cool $273,000. despite the price tags which are up there sales have been robust for aston martin in fact, last year they had their best sales in a decade and revenues topping a billion dollars for the first time and thenbrings up the question should this company go public? and people point to one example why aston martin would do well if it went public and that example is ferrari up 50% in the last year when the rest of the auto sector has done diddly-squat for the ceo he's doing very little to say whether or not the company will go public >> naturally you're seeing a significant increase in the basic valu

dell technologies' decision to buy in its tracking stock or offer $109 per share of its stock in vmwareg well below the 109 price. 41% of that will come in cash. the remainder will be in new dell shares. and that is how they're going to go public. some chatter over the last day, will shareholders vote against this deal? will you get a large institution? that gets into the shares and does something to try to stir things up or get a higher price? unclear whether that's happened. probably unlikely. one key point to make sheehere, under the provisions of the tracking stock, if you were to vote it down, dell could still go public, perhaps through a relatively small ipo, and they have the right to buy in the tracker year one at a 20% premium. year two at a 15% premium. year 3 at only 10% premium, with their shares so, they've got that in their favor, given the 29% premium they're offering for this. it would seem in the future, it might be less if you don't like this price michael dell, yesterday, seemed to struggle a bit when we asked him, why you doing this? one key reason may simply be that

it is buying out the tracking stock in its cloud software unit vmware shareholders could set $109 in newly created class c shares you wouldn't want to miss an exclusive vinterview with michal dell on "squawk on the street" to discuss this deal >>> trade tensions heating up. the eu planning retaliatory tariffs in the u.s. moves ahead with new duties on european cars the eu sent a written statement to the u.s. commerce department outlining its plans to respond the eu could impose as much as $300 billion in tariffs according to that document commerce secretary wilbur ross joined us in the last half hour. he responded to this report saying the u.s. investigation of the automarket is still ongoing and it's premature to make any decisions on the auto tariffs. we asked him about reports president trump wanted to withdraw from the world trade organization here's what he had to say. >> wto knows some reforms are needed so i think there really is a need to update and synchronize its activities we'll see where that leads but i think it's a little premature to talk about simply withdrawing from

vmware, its parent, dell technologies, says will buy all the shares that track its performance.tock, both shares by the way are higher. the idea ultimately the company will be taken public again. meanwhile lebron james, he makes a four-year deal with the los angeles lakers, 154 million big ones. jared mack is here with more. that was kind of quick, jared. he made the decision pretty quick. >> love it. remember nine years ago we waited with the television spectacular. taking his talents to los angeles. charles: right. >> honestly i can't see a better city for lebron to make this large of a splash for both sides. for the lakers, for los angeles whacker it does and for lebron james, 33. signing a four-year contract. still playing out playing career, more injuries. set for next step of his life in basketball. that is tinseltown. he is involved in hollywood a big way. this is huge. could this lead to sports becoming biggest attraction in hollywood more so than movies. there are jobs that get created by this you might regularly entertainment reporter, you got assigned to the lebron ja