apple doesn't play the same game -- david: tim cook from apple wint after his buddies in silicon valley. many people thought it was a low blow on privacy issues over in europe, suggesting in fact that we should import the same rules, regs which are much tougher than we have here. >> why do you that? you have apple as i do, and i'm sure you do, it's a different system, a closed system. do they sell data third party? based on my knowledge, not to the extent. they do track a lot of customer data. so they're kind of being brought into this as well. so, again, we have calls out. i put calls into everyone ever those tech companies. they have not gotten back to us. if they do i will update it in the 3:00 hour with liz claman. we put calls into sissel lien's office and doyle and ranking dems on judiciary and commerce but have not heard back. this is story to watch. particularly an investor, at least bad publicity is coming down the pike for these companies. david: very quickly, charlie, what does your gut tell you? are we going to end up with the same kind of laws they have over there concernin

president donald trump has been very vocal about apple creating jobs in the u.s. any chance that this is played a role in their decision. well i mean apple employs about ninety thousand people in the united states but most of the manufacturing is done overseas and that got criticized heavily in the past couple of months again and again by u.s. president donald trump you're already mentioned what kind of jobs to get created in the austin area so those are not to necessarily of the blue collar jobs that donald trump might be dreaming about and then also especially when we comes to manufacturing for effort so you need seasonal workers who have the right skills for the precision work and those workers actually might be hard found was in the united states so it's unlikely that those jobs will get moved from asia to the u.s. overall but i'm quite certain next time. runs into donald trump you might mention joel's new jobs but i do not believe that donald trump was the main influence for this decision. amazon of course had a similar search for a second headquarters and wa

apple's business chat, they are integrating businesses with apple pay. basically, you could chat with somebody from a business directly, use a network payment if you want to. there is a developed market to give facebook the competition. both are going to different strategies, but what will hold facebook back is this difficulty in striking payment network issues and difficulty -- or delays in striking. emily: will they figure out how to monetize whatsapp? jitendra: i'm more confident about live stories monetization than messenger and whatsapp, at least for 2019. it's going to take time. first, they have to address the misinformation issues. again, going back to the regulatory aspect of things, those things need to be addressed first. and then, the monetization aspect could be coming. investors need to adjust the timeline. emily: jitendra waral, thank you so much for breaking that down. coming up, terry go is not backing down in the midst of a trade war between the u.s. and china. this is bloomberg. ♪ emily: poultry a has made it -- altria has made it of

do we want to do business with apple? absolutely. iny are a significant player the mobile communications market and if we were to get there through settlement or because one of these mini milestones of these many-- milestones have occurred and that brings parties together, so be it. emily: there seems to be confusion on the pathway to resolution. are the companies in talks? we are not talking about whether we are in talks. the companies having gauged in the past and continue to on some level. there is apparent to everyone they can watch this that the companies are involved in extremely difficult litigation processes and were bound by certain confidentiality requirements, were bound by the things going on in court. the process of negotiation is something we are open to the. emily: the sec has brought an antitrust case against qualcomm. qualcomm has said you are in settlement talks with the ftc. what are the chances these cases go to trial? don: there is a pretty good chance they go to trial. we are anxious to go to trial in san diego

apple supplier woes continue. cirrus logic joined others to tumble after cutting the forecast following worries about future iphone demand. shares of serous fell as much as 6% in early trading before recovering some of that loss. we spoke with mark gurman about this and the measures apple is taking to try to sell more iphones. mark: they are not actually cutting prices per se. they are advertising a lower price which makes it so interesting. the xr forvertising $300 less than it costs. this is a new type of effort for apple. this is not something we have seen from them, basically disguising the price or saying it is something it is not. this is a trade in deal they are boosting, so this is a new, aggressive tactic and it was unbelievable to me following apple for so long, and seeing a banner for a $300 discount that is not really a discount at the top of the page. emily: you do not think about banner ads and discounts associated with the iphone, however those are being delivered. talk about the marketing shuffle.

gene, this is your call on apple. obviously it has been a bruising period for the stock, it is a beaten down valuation. is this a painful transition to the next phase of the apple story? before you tell me why you're bullish, how did we get to this level? >> we got there because people are still focused on iphone units and eliminating some disclosures, spook investors, and after that a chorus of negative data points out of asia on production of iphones those two pushed us to where we're at >> so why is that the story line and the market perspective going to change next year? >> every ten years or so there's a new paradigm, investing paradigm around apple. the last one was around the iphone the next one will be apple as a service. we're not talking about a small 15% of revenue that's a service to segment, we're talking about hardware services type of business unfortunately there's probably risk to the march numbers but despite that, we think this will be the best performer of faang stocks in 2019 because over the next

i think apple is really focusing on that with the ecg, the electrocardiogram monitor on the apple watch. that's something they're thinking about they repositioned the watch as a health and wellness device rather than a notification device >> are insurers going to want you to wear these things are they likely to give you a break on insurance if you do are insurers likely to buy them to give to you to wear so they can monitor your health? >> john hancock offered wearables. they're offering a steep discount for apple watch i think they're selling for 25 a big discount they want to monitor that and reward users who are healthy the flip side is you're giving them a lot of data that they can then massage however >> exactly >> could the government ultimately get in and start to subsidize this for medicare? >> i haven't heard that. it's possible. >> does it mean they're not cool anymore? if all the grandmothers have them, do you want them >> yeah. that's -- that's -- >> careful, now. careful, now >> that is the question. i mean, it is apple making a conscious decision to really position it for

apple and tesla. they are at the center of multiple controversies and have been part of some of the market's wildest swings. the two coming together in what was an epic "countdown" moment when warren buffett told liz of any chatter of apple buying tesla was just a bad idea. up next, our all-star panel will see if elon musk and tim cook should still join forces somehow. we'll be right back. i've always looked forward to what's next. and i'm still going for my best even though i live with a higher risk of stroke due to afib not caused by a heart valve problem. so if there's a better treatment than warfarin, i'm up for that. eliquis. eliquis is proven to reduce stroke risk better than warfarin. plus has significantly less major bleeding than warfarin. eliquis is fda-approved and has both. so what's next? seeing these guys. don't stop taking eliquis unless your doctor tells you to, as stopping increases your risk of having a stroke. eliquis can cause serious and in rare cases fatal bleeding. don't take el

that is exactly what apple does not want to happen. so, what apple wants to happen would completely up and qualcomm's entire business model. is that even possible? crawford: i think that is kind of the point he is making. not really likely. he is actually making the case that that could happen. theink in the aggregate, consumer in china, people do not want the consumer to lose. the chinese government does not want that to happen. from qualcomm standpoint, they do not want that to happen. i think overall, we are probably looking at a protracted legal battle where we reach some kind of a settlement because in fact, qualcomm has invested the medically. qualcomm has invested significantly in a fair amount of innovation that they want to protect. upending the entire business model does not seem likely from my bench point. emily: and it is also about the law. isn't qualcomm and the patents have racked up protected by law? crawford: they are protected by law. and the cases to what extent can qualcomm protect those patents around the world? qu

apple supplier woes continue. tuesday, cirrus logic joined others to tumble after cutting its forecast following worries about future iphone demand. shares of cirrus fell as much as 6% in early trading before recovering some of that loss. we spoke with mark gurman about this and the measures apple is taking to try to sell more iphones. mark: they are not actually cutting prices per se. they are advertising a lower price which makes it so interesting. they are advertising the iphone xr for $300 less than it costs. this is a marketing tactic you might see from samsung or huawei or some of the carriers for -- like verizon or at&t. this is a new type of effort for apple. this is not something we have seen from them, basically disguising the price or saying the price is something it is not. this is a trade-in deal they are boosting. so this is a new, aggressive tactic and it was unbelievable to me following apple for so long, and seeing a banner for a $300 discount that is not really a discount at the top of the page.

stocks, specifically apple. emily: we do have the google ceo not ruling out plans to get back into china with a search engine. as a result of his testimony on capitol hill, you have lawmakers calling for more regulation. are you concerned about the impact on the tech sector more broadly if congress takes a harder line on tech? >> it was a concern if you go back to march and april. we went through the hearings with zuckerberg and that was where there was an investor concern. it is still a risk but now it is more in the background in terms of big tech and some sort of regulatory risk. right now, it has been added to a overhang on the stocks and you've seen on the faang names, you never had regulatory risk and that is being factored into the multiples and investors are keeping a close eye on it in terms of what comes out. emily: dan ives of wedbush securities and mark gurman. gopro is trying to minimize the impact of having its products on any tariffs list. the company plans to move production out of china by next

we have 300 folks in apple that are here on daca. and these guys are living one court order away from a problem. and i'm deeply worried about it. i continually push on this and talk about it. i believe, based on my conversations, that the vast majority of people in both parties want to address this. it hasn't been addressed yet. i'm optimistic that it will be. but i'm going to be pushing until it's done. you mentioned inequality earlier, and i just want to comment a bit on that. i am deeply worried about inequality, as well. and i do believe globalization has created more inequality. and so i'm not one of these guys that say, "i'm not involved in this." i think it has created more. and i think it's up to us peop-- us that have benefited -- you and i benefited from globalization in a big way. i mean, your whole show, in a way, would not exist without globalization. >> but so, too, have hundreds of millions of people around the world been lifted out of poverty by globalization. >> that's absolutely right. and i am so happy to have part

tech, specifically apple. emily: meantime we have the google ceo not ruling out plans to get back into china with its search engine even as a result of his testimony on capitol hill, you have numerous lawmakers calling for more tech regulation. are you concerned about the impact on the tech sector if congress takes a harder line on big tech? went i think when we through the hearings with zuckerberg, that's where there was a big investor concern. it is still a risk, but right now it is more in the background in terms of regulatory risk. it is something that has been added to an overhang in the stoxx. you go back to last year or two, you never had regulatory risk and now that is being factored into the multiples. investors are keeping a close eyes on it in terms of what comes out. dan and mark, lots of stories we will continue to follow here. tencent music finally debuted on the new york stock exchange wednesday, china's largest music streaming service raise $1.1 billion. .t opted to lower its pricing , host ofg

it shows how apple analysts have been souring on apple over the last 7, 8 years or so. 100%an see back in 2010, of apple analysts had a buy rating. now, we are down to just over 50% of analysts having a buy on apple, and it is one of the most covered companies, something like 50 analysts. vonnie: and of course when apple suffers, the buyers suffer. what is happening? emma: again, it is iphones. that is the culprit. we are seeing a down in the market. today, we heard from an iphone lens maker that reported a 25% drop in november revenue, versus a year ago. those suppliers falling. that is something that has been happening as we have heard different suppliers report earnings over the past month or so. a have all largely reduced their forecasts for next year, the revenue forecasts. one that will be keenly watched today is broadcom. they release the results after the bell. as of august 5, about when he percent of their revenue -- about 25% of their revenue came from apple. guy: emma chandra with the latest on apple. still ahead, the saudis propose production cuts. oil under pressure. what

emily: when do you expect this to take a bite out of apple sales? don: it should have been taking a bite and should be right now in china. the order requires them to stop selling, stop offering for sale, and stop importing any devices between those model numbers i suggested. and by the way, the new models will be coming very soon. we are already in the process of seeking an order covering new models as well. emily: there are obviously developments in this global patent showdown every day. we spoke with steve mollenkopf in august. take a listen to what he had to say about where he hopes to get back to with apple. >> i think there is probably no better opportunity and partner for qualcomm than to work with apple. it makes sense that the technology leader in mobile should be partnered with the product leader in mobile, and those things tend to work out. the way we think is that you get the disputes figured out and you move on into a different period. i hope to be in that period according to the schedule we have laid out. emily: this seems to have gotte

i think apple is going to wait this out. you see the stock price, this is a real problem, a real issue, a real concern for investors. it is not real in practice but it is clearly real for markets. emily: the ban on iphones in china right now, the result of this dispute with qualcomm, how serious is that? continueas been -- we -- from everything we see in china, it is the older version. we have yet to separate that from ios-12 from pre-ios 12. we think only about 10% to max 15% of the phones in china are impacted. qualcomm is trying to focus on the core, trying to force their hand in terms of apple and this is something, look, china is key to apple's growth prospects. the last thing you needed was some sort of further worries around china and that is why investors are watching this as the last thing you want to see is the further dent in terms of china demand from this latest court issued. -- court issue. emily: the huawei cfo being granted bail, how concerned are you about this having a broader impact? >> apple has a bull's-

let's check on apple shares. their valuation below the historical average talking about 12 times forward earnings is apple just too cheap to pass up or is sentiment on the street still bearish. >>> stocks giving up a 368-point gain this morning. we'll look at what is taking us lower and why. there's the dow right now trying to make a comeback it might go back into the green before the end of the hour "power lunch" is back in two >>> and now the latest from tradingnation.cnbc.com, and a word from our sponsor. >> daily price fluctuations of individual stocks can offer trading opportunities. however, if you're unhappy with your returns while trading actively, consider taking smaller positions over a greater investment time frame. evaluating trends over multiple weeks rather than hours can help a trad lerocate more consistently tradeable trends while possibly trading less frequently >>> welcome back to "power lunch," everyone i'm sue herera here's your cnbc news update at this hour. first lady melania trump participa

apple has occupied the premium part of the market. vonnie: apple is not happy. paul: exactly. it's interesting to read what is happening is it is a very saturated market, the handset market.increasingly competitive . the apple phone sales, unit sales have slowed. think. they stopped reporting unit sales but this reflects we are going into the christmas season, the holiday season, and a recognized to grow unit sales, they need to be a little bit more promotional. guy: is this just a recognition that the price point is just simply too high? paul: you know, we have always had this concern. investors have concern for this product really around the world. and i think certainly in north america and a be developed markets, the answer has been no. they have been able to grow unit sales as well as asp but there are concerns in some of the emerging markets that their product may not be priced effectively.so what we are seeing here is it may be a short-term push to drive some unit sales heading into the holiday season here. but again, the concern from investors clearly will be is this a

this is bloomberg vonnie: apple boss that -- apple's suppliers are potentially steering away from china. they may be shifting iphone production if these tariffs on u.s. imports skyrocket. apple plans to sit tight for now. let's welcome in mark gurman. absolutely no decision has been made yet, right? this is all just a perspective thing should things deteriorate. >> that is absolutely right. hadcolleague out of taiwan a great story about the meetings between apple and different suppliers. han highst supplier is precision better known as foxconn in the u.s.. they produce and assemble the iphones for apple. it is their most important supplier by far and apple is the most important customer. right now the tariffs that are being discussed by trump are about 10% for an iphone. they are0% rate feeling the pressure to make a change in terms of exporting and making final assembly elsewhere other than china. the story is once it hits 25% that is when considerations kick into high gear and that is when we see prices increase to a point where it would potentially make sense for every location to ta

stocks, specifically apple. emily: we do have the google ceo not ruling out plans to get back into china with a search engine. as a result of his testimony on capitol hill, you have lawmakers calling for more regulation. are you concerned about the impact on the tech sector more broadly if congress takes a harder line on tech? >> it was a concern if you go back to march and april. we went through the hearings with the zuckerberg and that was where there was an investor concern. isis still a risk but now it more in the background in terms of big tech and some sort of regulatory risk. has been added to a overhang on the stocks and you've seen on the faang names, you never had regulatory risk and that is being factored into aremultiples and investors keeping a close eye on it in terms of what comes out. emily: dan ives of wedbush securities and mark gurman. theo is trying to minimize impact of having its products on any tariffs less. the company plans to move production out of china by next summer. the ceo says tod

of apple since july of 2011. e earnings are up about 80%, have you ever thought you can't do better than this, i did a great job. tim: we view the stock price, receive news and profits as a result of doing things right on the innovation side on the korea customersand treating like the jewel. i don't know the numbers. this is not something that is timp. n in my o rmp bi david: they said we didn't sell as much product as i thought, did it bother you? tim: it doesn't nime. we were going with apple for the long-term. and it always struck me as bizarre there is a fixation of how many units are sold in a period. so we try to be very clear that we do not run the company for eople who want to make a quick buck. david: one of the share holders bought 75 million additional shares is warren buffett, are you pleased? tim: i'm thrilled. because warren is focused on the long-term and so there is -- we are in sink and we run the company the way he invests, i could not be happier. david: warren still uses that flip phone. how mu

watch, wasn't apple pods or amazon's echo device. it was the russian intelligence -- the gru, the intelligence arm of the russian government weaponizing the object of our affection, facebook, and blowing its up in our face and impacting and subterfuging our democracy using something that is the october or our affection. the platforms have been weaponizes by bad actsors and it's clear the companies don't have regulation and will never connect the doeses and make the investment to ensure the assist, so they won't be weaponized again. the rest rick out of facebook is there will always be bad actsors which is saying, it's going to happen again. >> host: back throw four, facebook is thought to be the best firm to work for. >> guest: yeah. don't -- there's different surveys but facebook -- the average wage at amazon is now $50,000 because, again, of the disproportionates amount of employees in warehouseses one in three amazon employees in arizona is on some sort of food assistance or food stamps. the average wage or salary at facebook is a

case even at higher prices is apple a compelling investment at this stage? >> i think that's why value investors get so interested in something like apple when it comes off close to 25% you have a company trading at 13 1/2 times earnings, which has become a much more stable earnings stream. so far we actually have not witnessed any disappointing earnings all of the price movement in apple has been a result of a change in sentiment and fears of future sales >> so, tim, if we have that sentiment, what actually gets invest, excited about apple again? it does pay a dividend it does buy back stock it's a cash flow machine what is it that it needs to do to communicate that message to get more people interested in buying those types of shares >> well, i think you used the right word on that communicate. the last quarter they decided they would no longer release iphone sales figures that's really spooked the market it made the market fear that those numbers would be poor. apple needs to do reassurance of the market that across their product spectrum, services, hardw

and the ten apple stocks for one point three percent the chinese market is worth about eleven billion dollars a quarter all cost stocks rose nearly. all of the new models. well one point two percent drop in the share price doesn't look like investors are too nervous a strain colored boos of the frankfurt stalking stance call out how much of a problem can this become for. the concerns on the trading floors are quite outspoken and make no mistake this is one point three percent drop in apple's share price is not the whole picture apple has lost a huge chunk of its market capitalization since the beginning of october at the beginning of october apple was worth a bit more than one trillion u.s. dollars now it's worth around about eight hundred billion and a lot of this loss of course has to do with concerns among investors that the trade spat between the u.s. and china will become a big problem so this court case in china between apple and qualcomm is only part of a whole bunch of problems apple is facing in china and of course with who are way and the escalation around you know this chin

apple looked fantastic then it started to give it up in the first 30 minutes it was apple, facebook, a couple other names that started to turn that's when we went from 350 we were holding on to some of the gains but that was a telltale for what we're seeing now up 32 points after being up 350. that is a huge statement in and of itself. >> marc, i want to get you involved in the conversation you follow apple equity and have an interesting take on apple's debt and the large amount of cash, what it means for the market >> when you look at it, it has been $100 billion in debt. it has no real debt. it's sort of free cash of $130 billion. and then you have a market value of about $830 billion. you take a look at what's going on in the sectors. take uber. uber right now, that same debt is trading at 8%, 8.5% it's also got -- uber has net debt of zero yet uber will go public at, what, $100 billion why is uber trading today at almost two and a half times the yield that apple trades at and part of it is just the market is nervous. when yellen is talking about what is happening on the corporate

do you have an apple watch. >> no. >> you do now. >> i wanted to give you an apple watch. >> this lady is like wait a minute. >> i believe him. >> he's done stuff like this. >> you are not going to give me an apple watch. >> i am. i have a bunch of them in my backpack. >> each person says the same thing. are you sure? >> just giving back today for the holidays. >> really? >> he walks up to complete stranger and blesses them with an apple watch. >> we owe him an apology. cheers, brother. >> thank you so much. >> if that's about making somebody's day better, this dude is in disbelieve. >> bring it in. >> it looks like they are also college students. finances aren't abundant. >> this happened on college campuses. >> i love this one. i don't have an apple watch. >> neither do i. >> you got to wonder about the people sitting close to that person. they are like wait a minute. >> this student says she can't take this from him. >> i can't accept it from you? >> why not? >> that's crazy. >> i love the moments he does go out and makes people's day better. >> if you want to see this one. head ove

crucially apple says the iphone ban would force qualcomm to reach a settlement with apple. the intellectual property covering wireless design. the chip maker is using other patents that cover some aspects of the way that phones work to attack back at apple. the sides are continuing. not just talking about china but in another m arket in the u.s. and germany. qualcomm specifically engaged in these patent disputes. we will get more details as they become available. let's get you to first word news. boj's quarterly survey found covenants among manufacturers held that but they have a dimmer view of the future. the reading remained at 19 but the outlook fell to 15, below forecast. it adds to users about the health of exports and investments that have driven growth in the economy. still, sentiment remains higher than it was for almost all of the past decade. theresa may has appealed to e.u. leaders to help her fix the brexit deal. yetsaid the deal could collapse but added that reassurances from brussels would change with an at from parliament. they are discussing a new legal decl

next hour, apple doubles down in the lone star state. the company will invest $1 billion to build a new campus in austin as it adds more jobs across the united states. lots, a retail revival? the industry has been struggling, but the ceo of old navy says data connection best collection could be. the key to luring customers back and could the secretive facebook's revival be paypal? we speak to one analyst who says this is a match made in heaven. first, to the top story. the wall street journal reports told the president not to involved -- get involved in the arrest of the huawei cfo. joining us now is mark bergen who recently wrote about huawei's ambitions and outlook. we continue to get reaction from the chinese governments, including a chinese official op-edan op-ed in -- calling this a premeditated political action. tell us more. mark: canada has been a tough spot -- been in a tough spot. we see a lot of activity in social media like lots of anti-canada. the wall street journal reported there is a lot of lack of clarity about what the

with him as things shake out for apple. romaine: it has been quite a day. when you think about what we had yesterday, one of the biggest point gains on record for the major averages and then or's, a day like today -- -- then of course, a day like today. here is what analysts told bloomberg tv this morning about what the market may be, out of touch. >> so far it has been sell the rallies. i think everyone was looking for the santa claus rally, you have the tax selling out of the way, things should start to get better. you have a lot of forces that people weren't expecting. >> i think the market is probably overreacting in the sense of, if you look at the in thentals on macro u.s., it is still being fueled by huge fiscal strength, or rather fiscal excess, i should say. >> we saw what happened to the market yesterday and what happens to the market on december 24. i would say the market over those passed trading sessions has not matched the economy necessarily. the economy see down 20% in less than two months outside of recessi

gene munster says apple will beat out it's tears and next year. plus, will be tech fizzle out -- bittech fizzle out in 2019? ech fizzle out in 2019? we look back to some of the biggest tech deals of 2018. highlights from our interviews with the microsoft ceo and more. first, to the top stories. one veteran analyst is telling us let's move over in the new year. gene munster is predicting apple will be the best-performing faang stocks in 2019. here's a reminder on where apple stands now with a few days left to go in 2018. they are the second worst performer in a group of large-cap tech stocks. it spent a year seeing the iphone maker richard trillion dollar market cap and lose its crown as the world's most valuable company to microsoft. what makes munster so optimistic? jean joins us now. walk me through your general thesis. as we said, the second worst performer of the faang stocks. gene: we think investors will think about apple as a service. that's the whole company as a service. as that takes root, that should yield a higher multiple. i want to t

next chapter. >> well, apple suffered just like the market did with the fed. botching the transition. they did a terrible job in the last quarter basically surprising the market saying we are not issuing any guidance anymore. >> let me ask this -- >> how else do you do it they it it on 40% earnings growth. >> it doesn't matter we can go back and forth how they should have done it the way they did it botched it but that creates opportunity for investors. so i agree with you. we have fundamental support for this they botched this now people say we don't know what's going on. dumped out that's an opportunity in apple i like it here. >> you think they made a mechanicing mistake. you even commercials call it the xr it's ha x railroad i think i gott gott an mel email you could buy the xr for 499 aren't you worried that they may have made a rare if not one-time mistake with in rollout. >> let me fast forward here for a month. i think apple is guiding down for the march quarter. >> you do. >> i do. >> okay. >> i still think it outperforms the rest of fang. >> the guid

apple is in to it and so is uber. you'll see major players breaking into this in 2019 as well and the arms dealer for that race we think is green dot is going to be the one that will be the winner as they've already landed a lot of the big contracts but there will be a lot more in 2019 as these banks start to face real new competitive threats. >> brad, you've given us some good themes. >> a lot of secular themes to hang your hat on in a shopping market. >> there's a lot to play, thank you guys. >>> the government shutdown has entered a second week. we'll get to the latest, what it means for your money next. >>> the real estate sector falling nearly 7% this year in the market. whether 2019 will be a buyers or sellers market coming up. you always pay your insurance on time. tap one little bumper and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch

drone view 7 was over apple headquarters. the new austin campus would be the largest outside. >> apple is deepening their investment in our people, in our counties, in our region and in our city. >> the tech giant will also build new offices in seattle, san diego and expand campuses in pittsburgh, new york and boulder. it is all expected within the next three years. >> apple is making a huge investment into the u.s. >> she explains expansion comes afternew trump administration tax laws went into effect last year. it prevented from avoiding taxes on international profits. in january the tech giant announced it would invest $30 billion in u.s. facilities and create 20,000 american jobs by 2023. >> i think it is actually completely on track. they are also expandsing by building new data centers as well. >> apple will inves $10 billion in u.s. data centers over the next five years. i'm live at apple headquarters. abc 7 news. >> all right. thank you. >>> we are tracking breaking news just outside the tunnel. sky 7 is live where a

emily: let's talk about apple. for long time, this is your biggest customer and now they're your biggest nemesis. how would you describe your relationship with apple today? steve: we have a dispute over the price of ip. we think that's moving to a period of time where our strategy is unfolding in the environment is such i think you're in a position where it'll get done. at the same time, i think there is probably no better opportunity and partner for qualcomm band to work with apple. it makes sense that the technology leader in mobile would be partnered with the technology leader. and those things tend to work out. the way we think about the business is eventually you get the disputes figured out. emily: so, you believe apple will remain a customer? steve: i think so. look, if you have leadership technology in your roadmap will eventually dominate. i think there's no reason why that shouldn't be the case. emily: you're taking on the world's most valuable company. they've stopped putting your chips in their phone an

million and admittedly its future, to make inroads against ibm. >> apple felt like a rock band. had the same kind of spirit. they seemed to be going up against the man in ibm. >> it is aimed at a largely untapped market of managers, professionals, and students. while they make up about 75% of the white collar workforce, less than 5% now use computers, mostly because of their complexity. macintosh is designed for simplicity. using a palm-sized unit called a mouse. >> it was the first time that a machine was personal, it was simple, it was friendly. >> it took the computer out of the exclusive domain of geeks and nerds and people who had memorized the commands and put it on the desk of everybody. untrained, nontechnical people. >> stores around the country put them on sale today, and analysts say it's a good bet that macintosh could soon be the biggest apple of the industry's eye. >> it's got its best years ahead of it, eventually i want to be able to carry my mac around with me, walk around with it in my pocket. >> pocket computer? >> yes. >> you really like that mac. would you t

>> the general sense was that they would let the lawsuit against apple go forward. i counted only one real vote on apple's side, and that was chief justice john roberts. as many as seven justices are taking their perspectives might be inclined to let the lawsuit go forward. if so, that is bad news for apple obviously, it adds a source of pressure on them to reduce the 30% conditions they charged app store developers. >> deutsche bank is said to be considering a major shakeup in its top ranks. this comes as regulators are expressing frustration with the firm's efforts to prevent financial crime. bloomberg has learned that the bank's chief regulatory officer and tom patrick, who runs u.s. operations, may leave the company, but any final decision has yet to be made. do regulators think deutsche bank is not on top of the issues? >> i think so, and this is serving as the second ceo that had previously been associated with the associations of the bank and still have struggled to regain the confidence of regulators, they are still not shown to be making significant progres

>> for the last couple years, apple has been setting the agenda. apple initiated this. they were talking about how qualcomm was a bad actor. this is how qualcomm has been trying to fight back. it ceded these cases a long time ago, finally got a decision they can work with. now we have to see whether it sticks or not. emily: we are talking about a lot of iphones. including 8, 8s plus, iphone x, but not the newest models. ian: because the suit was filed before the new phones were unveiled, so qualcomm did not know about them and could not file that. it has taken a while to get through the system. logical to extend the ban for the new emily: so, tamlyn, what one. is the likelihood that apple had will successfully dispute this? >> apple might have its hands tied in terms of getting the court to overturn this immediately. what they have been arguing so far is the new ios 12 operating system does not use qualcomm technology and that is why they say the new model phones are not affected. and they say that all of their sales of the older phones are running on the operating syst

. >> apple cider vinegar. you get one of those resistance bands. then you can do the side hip lift. >> just take some charcoal pills and some ibuprofen. >> just take the pillows -- >> right, exactly. if you have the energy to do this the next morning, you did it wrong. >> and a lot of you are on board for this perfect hangover cure. i think you'll all agree with us for the next, it's a bacon,hee bread. just start toasting it. cook up that bacon nice and good. crack the eggs into it. get them cooking. put the bacon back in the eggs while it's cooking. it kind of holds it all together. and then you take that egg, it on that bread, and thenu you get this. >> is that better? >> yeah. >> "right this minute"! ♪ >>> why boarding and drones make for one's splashy celebration. >> you think it's cool now -- >> how the party really heats up when the sun goes down. >> oh! >> now, come on. >>> plus, the crazy russian hacker party trick we've got to try. >> do you see this? >> yeah. >> see which cracks first, the apple or holly's finger. >> oh! -morning. -morn

. >>> smash but no grab at one apple store, a simple security measure forced some would-be thieves to abandon their plans. kpix 5's andria borba is live in berkeley with that story. andrea? >> reporter: you know how your mom told you you have to do your homework? apparently the same is true for criminals as well. hidden beyond row after row of holiday lights on berkeley's fourth street, tire tracks on the sidewalk, the low-tech private entrance at high-tech apple. these photos explain why. 3:23 a.m., at least two men tried to back a rented u-haul into the apple store. >> it's very ridiculous. >> reporter: they broke the glass but did not do quite enough reconnaissance. >> there's a metal security screen, that is on the inside of the doors that was not penetrated so they weren't able to get inside. >> reporter: when berkeley officers responded to multiple alarms, the engine was still running but the suspects were long gone. their iphone and apple watch dreams foiled by a metal gate. >> pretty funny actually. >> and not very smart. >> reporter: berkeley officers have made calls to servi

there have been repeated reports from apple suppliers, news out of the supply chain in asia that apple is maybe cutting production lower than expected on the new iphones. those supply-chain reports are not always accurate. they worked last year with the iphone x. it just feeds this anxiety as we already seen, that sales of iphones and other smartphones are basically tailing off. easy growth in that market is gone and that is reflected in apple losing the market cap, the number one position to microsoft. emily: a lot of optimism about microsoft, and we have talked about what microsoft is doing so well. i think we might have thought amazon would be the one to take this crown. >> amazon did touch one trillion for a nanosecond. weakness resulted in this trade-off. microsoft is in a bit of a sweet spot right now. it is consumer facing companies like apple that are getting hit right now. they have been the darling of the tech industry in the market for years. now people are wondering if the consumer is as strong as had been the case before. some of these companies that cater mostly to busine

microsoft in the lead, as it were apple's flat stock wise. amazon is up 40% >> apple will take you back to the spring have a good weekend. let's get to "the half." >>> thanks, i'm scott wapner what would that mean for the future of stocks and your money? it's noon and this is "the halftime report. >> did the number 155 just change the entire picture for the fed, the markets and the american economy an apple analyst made a big move on the stock and mike mayo is here after a terrible week for the financials down more than 5% see what h

we want to talk about apple. but get a check on your -- let's on bloomberg get a check of your headlines on bloomberg. >> i have your bloomberg first word news. a union that represents government employees macy the federal government for forcing employees to work without pay during the current government shutdown. bloomberg law has learned the american federation of government employees, which represents more than 670,000 employees, may file suit under the fair laber act. federal employees in october of 2013 filed a similar class-action suit following a five-day shutdown and won. attorneys for boston marathon bomber wanted his death sentence overturned. judges arguing that the removed to move the case out of the city, where the bombs exploded. it was impossible for him to get a fair trial. twond his brothers set off shrapnel packed bombs near the marathon finish line on april 15, 2013, killing three people and wounding more than 260. more police officers have died in the line of duty this year in the united state

>> the general sense was that they would let the lawsuit against apple go forward. i counted only one real vote on apple's side, and i was chief estes -- and that was chief justice john roberts. as many as seven justices are taking their perspectives might be inclined to let the lawsuit go forward. if so, that is bad news for apple obviously, it as a source it -- it adds a source of pressure on them to reduce the 30% conditions they charged app store developers. >> deutsche bank is said to be considering a major shakeup in its top ranks. this comes as regulators are expressing frustration with the firm's efforts to prevent financial crime. bloomberg has learned that the bank's chief regulatory officer patrick, who runs u.s. y leave the mak company, but any final decision has yet to be made. do regulars think deutsche bank is not on top of the issues? -- do regulators think deutsche bank is not on top of the issues? >> i think so, and this is serving as the second ceo that had previously been associated with the associations of the bank and still have struggled to re

comings on the heels of apple suppliers reducing out looks in recent weeks. >>> and apple is now reportedly turning to promotions to drive sales of iphones. bloomberg is reporting now gnat tech giant mass instructed some of its marketing staff to sto working on current projects to focus on improving f demand the company's newest iphone. sincehe initiative apple has offered a number of of trade in offers that reduce price on iphones for sale currently. >> does all of that mean the company may have reached peak iphone sales? if so what does it mean for the stock? we are joined by timothy lefkoe thanks for beingitus. >> thanks for having me. >> is it that iphone sales peaked? or people are waiting longer to upgrade or renew with a newe? ph how do you feel about it? >> well, i think that y're finding that with the higher priced iphones and with the cycle seemingly stretching out where peopleight be waiti two or three years to upgrade the iphone that there is aer co that that means a massive decline in iphone sales? i thinkhat that really maybe isn't in the -- baked in the cake. apple grows inte

shery: we are seeing apple stock pop up a little. ian king thank you so much joining us from san francisco. a shakeup in the indian central bank, the head of the bank resigned in the midst of repeated clashes with the finance ministry over the banking crisis and interest rates. we had seen this coming for a while. the deputy governor came out with a harsh speech back in october, talking about central bank independence. what happens on friday because the rbi is meeting? >> there were concerns that were scripted for quite some time. there is a lot of uncertainty not only because of the meeting coming up but the statewide elections which could signal how much strength modi going into next year's national election in may. has been under a lot of pressure since patel took over in 2014. they use the capital reserves to help boost economic growth. that eventually led to patel's resignation. : that's roiling in the at the moment and that may continue but in general, emerging markets have been beaten up this year. does that position that spac

apple did not hold a "beauty contest." go to numerous cities and ask them to send necessity pitches. they did not create a public process for it. they did not keep updating people on their progress like amazon did but the big, you similarity here is they both veered off in different directions and they said they would, right? amazon sort of pulled 2 small bait and switch moving from one splitting itpus to between new york and outer d.c., virginia area. on its word from a new location, a major new campus and basically put out an regurgitating a bunch of expansions we already about, plus an expansion for an existing campus in austin, texas. off of theirveered original directions and sort of changed course along the way. muchen though it wasn't as of a public process, though, don't you imagine apple had rivate processes similar with each of these cities, looking for a place where it could get a deal? absolutely. we know for a pact that north carolina, they were in talks city of raleigh for their research triangle park for whi

apple will be the best-performing stock in 2019. here is a reminder on where apple stands right now, the second-worst performer in a group of large cap and technology stocks. it spent a year becoming the first to reap a trillion dollar market cap. it lost its crown as the world's most valuable company to microsoft. what makes munster so optimistic? walk me through your general thesis. as we said, the second worst performer of the faang stocks. gene: we think investors will think about apple as a service. that's the whole company as a service. as that takes root, that should yield a higher multiple. i want to talk briefly, when we think about apple as a service, what that means. we're not talking about its services segment, we are talking about their entire business, hardware included, operating with more predictability, like a subscription model. we have seen evidence of that over the past couple years. growth has been down and up a couple percent, what the notion investors can sleep well at night knowing this is a predictable busin

apple versus qualcomm. the lead attorney for apple device makers looking for almost $9 billion in damages. am the worst year for hedge coming to a2011 is close. what will 2019 bring? that is all in the next 30 minutes. taylor riggs is with us. we have been up and down today, but mostly down. we are down again. taylor: up and down. in the s&p 500, half the sectors were higher, half were lower, and almost every sector has turned lower, including the utilities, which is interesting. rate-sensitive stocks. i think as the fed moves to raise rates on wednesday, you are seeing a lot of the defensive sectors which were good performers last week, like utilities and real estate, be major laggards today. that is putting pressure on all the major indexes. i want to focus quickly on pg&e, one of the worst performers, off more than 6%. there were concerns about them due to the fire damage in california, and we are getting comments from the california public utilities commission, saying pgn the statements and systematical