elon musk is terminating his deal to buy twitter. we have alex sherman from cnbc.com reporting for you on the newsline and can share a bit more about what we have just learned in the last couple of minutes. alex, what is going on here? what was the final breaking point for elon musk? >> this has been a drumbeat for several months, where there has been a lot of smoke that elon musk was unhappy, with the arrangement of buying twitter. he has put in a filing with the sec saying he is terminating the deal. basically, what he is claiming is that he has asked twitter for data and other information for several months. twitter has failed to provide this data to him but he is claiming that this is a material adverse effect on the deal. there is of course, a clause that elon musk can get out of the deal, if such a clause is broken, in other words, if this information is not received he can get out of the deal, paying a $1 billion break fee. that is his contention. now, we are likely to see a lot of litigation following this, because, even thou

it is not just elon musk. there are entire teams of people passing information, that have been in contact daily about this kind of stuff. i think today it has been, what is twitter giving elon and what is elon demanding? i think twitter has said we will give you the firehose of tweets. we will give you every public tweet on the service. elon is clearly saying that is not sufficient for calculating what i need to calculate which is the percentage of bots. i think the real issue is they do not see eye-to-eye on the bot issue and clearly that is big enough for him to pull the offer. it feels like we have been building to this for some time. i have to imagine he had some buyer's remorse given he made his bid in april and we have seen what the market has done since then. caroline: it feels this is destined for the courts. >> i think so. twitter has said repeatedly we plan to enforce the merger agreement. they had come to an agreement. even him saying i am pulling out, my understanding is twitter legally can try and

a few minutes from now, a battle takes off between twitter and elon musk. >> twitter and elon musk lawyers are right now facing off in virtual court for the very first time as the two sides make their arguments about how soon the case should take place before this is all happening before the chief judge of the delaware chancery court. now, twitter is asking for a four-day proceeding in september, arguing that shareholders and its business have been left in limbo, but musk says he needs until february to investigate spam and fake accounts, saying trial prep will, quote, be extremely fact and expert intensive, requiring substantial time for discovery twitter shooting back to that in a filing late yesterday, writing, quote, the earliest possible trial day is imperative, saying the very public dispute harms twitter with each passing day musk is in breach the chancellor who is hearing this, mccormick, could announce her ruling as soon as today. and the october 24th deadline for completing the deal, that will likely factor into her decision so john, i guess the question is, what can we read into

elon musk vast wealth is tied up elon musk vast wealth is tied up in tesla. if tesla is doing badly it really hurts elon musk. many people speculate that he was looking for a way to pull out of this deal. it's not really about bots and spam accounts it's about elon musk trying to get out of something that he agreed to. the problem is these are reported to paper. it might be more difficult that he anticipates to get out of this deal. he anticipates to get out of this deal-— this deal. just remind us briefly. _ this deal. just remind us briefly. why _ this deal. just remind us briefly, why did - this deal. just remind us briefly, why did he - this deal. just remind us briefly, why did he say i this deal. just remind us| briefly, why did he say he wanted to buy a three in the first place was back he said he loves twitter, he's a user, he loves free speech and twitter had lost its way. he loves free speech and twitter had lost its way.— had lost its way. he said this has nothing _ had lost its way. he said this has nothing to _ had lost its way. he said this

elon musk has already put _ for the company. elon musk has already put pen _ for the company. elon musk has already put pen to _ for the company. elon musk has already put pen to paper - for the company. elon musk has already put pen to paper on - for the company. elon musk has already put pen to paper on thisj already put pen to paper on this deal, how can he get out of it now? if you talk to lawyers, which i have been doing, they are very sceptical about his arguments. he knew about the box before this deal, and now he is saying that the bot problem is why he wants to get out of the deal. of course, elon musk is shown over the years that he is willing to fight hard in a court of law to have his way, even when lawyers are telling him, dude, slow down, you're not going to win this one. he is more than willing to go and fight all the way. it is possible that it could be so painfulfor twitter that they do say fine, pay a smaller fee, they do say fine, pay a smaller fee, the $1 billion break—up fee, and we willjust walk away. the $1 billion break-up fee, and we willjust walk aw

elon musk. "russia, hello?" the other western name as popular among ukrainian troops is �*boris johnson'. but even though he'll soon be gone, there's still hope that britain will continue to back ukraine. translation: now we're - defending western values here. modernising our army and providing sufficient weapons will bring peace to your country, to you in britain. russia's already targeting the city of slovyansk. it still outguns ukraine and has the advantage in electronic warfare. home—grown ingenuity and western support is making a difference. but is it sufficient to halt the russian advance? jonathan beale, bbc news, the donbas. let's get some of the day's other news. officials in indian—administered kashmir say at least 13 hindu pilgrims have died and dozens are missing in a flash flood triggered by a cloudburst near the amarnath cave shrine. a torrent of water rushed through the mountains inundating a base camp set up for hundreds of worshippers. reports say around 40 people are unaccounted for. a ma

coming up, twitter gets the green light to take elon musk to court. and we will talk about what's next with a columbia law professor and our very own kurt wagner. this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create emily: round one goes to twitter. the company was granted its request to fast-track its lawsuit against elon musk as he attempts to walk away from the deal. a delaware judge set a five day trial to start in october. for more, we are joined by a columbia law school professor and codirector of the nielsen center along with kurt wagner, who covers twitter for us. what happened in court today? the judge actually has covid. >> i was li

elon owning it is not good. a settlement is likely to equal any amount of value that equals the damage done. the real problem is there are actual employees who want to make a better product and make the company better but they just don't have the leadership that will enable them to do that. emily: let's be clear -- there are so many, including elon musk co. love twitter and love using butter. but twitter, over so many years, has not been able to parlay that into a significantly bigger business. what is your plan to increase the number of users and drive revenue? jason: let's be clear -- i'm not here auditioning for any job at her. what the board needs to do at the end of this juncture is find new leadership. that is not a job i am auditioning for. they need to look at users who have found tremendous value and building gauge meant around it. i don't think the company is one silver bullet away or one feature away from sticking the trajectory it's on. it's obviously something that has always had cultural value in r

did it involve taking on elon musk? >> unless there are cake decorating companies that are worth that much, it was not. this was a small deal. not even a public -- not even a publicly traded company. chancellor mccormick is going to be similarly unsympathetic toward the buyer that wants to walk away. however, this particular deal and everyone knew this because it was out there in the public domain, elon musk went after twitter. they were reluctant seller. only after did he seem to start to have problems with that. a lot of people including twitter's lawyers said this is a pretext, it beginning to an elaborate set that was attempting to engineer an exit ramp for elon musk. one of the key claims he made was this bot problem was bigger than i thought it was going to be. that was never really in the documented stuff. it was never in the agreement itself. it was sort of something he injected into the picture and i think one of the key questions people are looking at today was whether the judge would be willing to take a long

elon musk. "russia, hello?" the other western name as popular among ukrainian troops is �*boris johnson'. but even though he'll soon be gone, there's still hope that britain will continue to back ukraine. translation: now we're - defending western values here. modernising our army and providing sufficient weapons will bring peace to your country, to you in britain. russia's already targeting the city of slovyansk. it still outguns ukraine and has the advantage in electronic warfare. home—grown ingenuity and western support is making a difference. but is it sufficient to halt the russian advance? jonathan beale, bbc news, the donbas. russia has vetoed a un security council issued to keep a crucial border crossing to syria open. the authorisation is due to expire on sunday. it has been in effect since 2014. aid agencies and engineers say it risks putting billy as a people into starvation. the list of potential candidates to succeed borisjohnson as leader of the conservative party and become the next british pr

>> elon is the gift that keeps giving. karen heinemann, back when this deal was coming together, i don't know where she sits in that position but good for her. and, i see twitter now back to before this elon story, i think you have to look at the company through a different lens, because we have now confirmed there are no other buyers. we have now challenged some of the assumptions on the number of users, but we are really no different than where we were. we are at a place where twitter timmy is still intrinsically valuable, a company that many people thought would move significantly higher than it began to monetize and they brought on some of the new product that were going to increase engagement. the cyclical add cycle also hurt them here, and that doesn't last forever. so, i also think you are shorting twitter at this point, maybe the best thing that happens to this company is elon running to the door. >> there is a filing that includes a letter from elon musk saying that company twitter has not provided the information

ann: well, elon musk is so singular. i mean, nothing about this deal unfolded the way deals normally do. this sort of overnight purchase, where he was pressuring the company on twitter and it was signed almost immediately. if there is any lesson here, it is that if you have an erratic buyer to be a little bit more careful, at least in the drafting of the merger agreement, which is always tightly drafted, but a billion-dollar damages cap maybe they should not have included that part. i'm not sure how many lessons there are for the future because i'm not sure how many impulsive eyes of a 44 billion-dollar company would ordinarily see. -- impulsive buys of a company. the impression that must gave that he was buying it simply because he wanted to personally, they make this so extraordinary and hard to figure out what the next steps are. caroline: and of course the only winners are the lawyers. ann: well, they will certainly do pretty well. i think elon musk will win if he gets to walk away from this for $1 billion and nothin

. >> shareholders threatening to sue elon musk and we will be joined by their lawyer. >> a dangerous mission to save pets trapped in ukraine. >> what i basically was doing was flying the infrared drone over the cities and bombed out buildings and looking for any signs of life. >> incredible. an exclusive. we talked to the drone pilot who returned from the war zone. >>> good evening. thank you for being with us on this monday. we start off this week with one of our natural jules, the disaster unfolding now in yosemite and the wildfire is threatening now some of the world's oldest trees and they are the giant sequoias and forcing evacuations in the southern part of the park including this area where there is smoke and some of it is mated here to the bay area. it is hazy especially in the east and north bay with updates on the air-quality and saving those trees and a few minutes. >>> we will catch you up on some of the other headlines right now. schools in the east bay ransacked. richmond police investigated a string of attacks targeting elementary schools. this is what it looked like i

elon owning it is good. a settlement is unlikely to equal any amount of value that equals the damage done. the real problem is there are actual employees that want to make a better product and make the company better for the future but they just don't have the leadership that will enable them to do that. >> there are so many that love twitter, love using twitter but twitter over so many years has not been able to parlay that into a significantly bigger business. what we go to increase engagement and drive more revenue to increase the number of users? >> i am not here auditioning for any job at twitter. i think what the board needs to do at the end of this juncture is find new leadership. that is not a job i am auditioning for. i think they need to look at users that have found tremendous value from it and build engagement around it. i don't think the company is one silver bullet or future away from axing the trajectory it is on but it is obviously something that has always had cultural value and cultural res

so that elon musk's position. how has - things. so that elon musk's position. how has twitter l position. how has twitter responded? _ position. how has twitter responded? twitter - position. how has twitter responded? twitter has l responded ? twitter has responded? twitter has responded as they have pretty much been responding through this tumultuous deal. they have said repeatedly that they would enforce this merger which means they would sue and today, they said they intend to sue him, so unless something is either, i imagine there are very dramatic talks happening as we speak but unless something comes to fruition over the weekend, they come to some sort of terms, maybe a renegotiated price for this kind of deal, i imagine a lawsuit is being drafted currently and is being filed or will be filed on monday. it looks like a bit of a legal stand is imminent. what happens next? ~ ., , stand is imminent. what happens next? ., , ., stand is imminent. what happens next? ~ ., , ., ., stand is imminent. what happens next? ., , .,. , next? well, it goes to a very sec

elon musk is there. there's been a lot of talk about how awkward that might be, i spoke with a source today he says executives not interacting with each other and they're both on the grounds about 300 total. elon musk is supposed to talk tomorrow, saying all been venture capitalist will be interviewing him onstage. we may learn at that moment staff, where he started to talking what might have been, and what condition he might leave this company. i think the hope is, those who were there if it's close to a profit, we'll see if anyone talks afterwards. we can hear from eli mask about what he hopes and when he was to perceive. >> everyone else at that conference says what the heck? what's with this guy the way behaves publicly on twitter, if they ever did that they would be in serious hot water. david, girth anchor so much. always great that's an understatement. coming up, with roe overturned, america is already overturned when it comes to our foster care system. now it is going to brace for a whole lot wor

the real story seems to be elon musk and twitter. elon musk as we've been telegraphing on the show for some time, nixing that bid for twitter, the 44 billion-dollar deal. it is hitting twitter stock. it has been hitting tesla stock. go back to the very inabouting on all of this, think about it. i would like to go back to the initial investment. that was unknown to a lot of people until sometime later. tesla stock declined 36 1/2%. that also means that elon musk overall wealth fell about 36%. so if you look at him with spacex and all valuing you know, all of his investments at around 300 billion, that is like losing more than 100 billion in net worth. it still means you're the richest man on the planet. because other technology ceos have seen their holdings evaporate right now under the big tech selloff, he maintain as substantial lead. if you're a twitter shareholder, looking at this, you're not getting any big break now, down 32% from the first hint of an investment that the world didn't know about for sometime to come. kelly o'grad

elon musk. "russia, hello?" the other western name as popular among ukrainian troops is boris johnson. but even though he'll soon be gone, there's still hope that britain will continue to back ukraine. translation: now we're defending - western values here. modernising our army and providing sufficient weapons will bring peace to your country, to you in britain. russia's already targeting the city of slovyansk. it still outguns ukraine and has the advantage in electronic warfare. home—grown ingenuity and western support is making a difference. but is it sufficient to halt the russian advance? jonathan beale, bbc news, the donbas. this is bbc news, the headlines: a standoff between the world's richest man and twitter, as elon musk says he wants to pull out of his $a0—billion deal to buy the company. president biden signs an executive order to help safeguard american women's access to abortion. in the uk, the list of potential candidates to succeed boris johnson as leader of the conservative party and become t

ed: elon musk geithner sous, it could go to trial very quickly. -- elon musk counter sues. in court for years, some are bracing for. emily: what happens to twitter in that time? ed: it is a real financial headwind, it is a public relations headwind for them. emily: for employees? they are trying to recruit people, keep the trains running. ed: that was part of what twitter ceo said two employees on wednesday could we are facing a changing economy and a difficult case. raise yourself. emily: what are we hearing from employees? i know you were talking to a lot of people. ed: if feel like twitter's management has been on the back burner this whole time, they should have been more proactive. that elon musk's whole hand a few weeks ago -- it was the final straw for a lot of employees. and they have frozen hiring, cut projects. it is not as happy -- a happy place to work. emily: indeed. all right, ed ludlow, thank you. that does it for this edition of bloomberg technology. tomorrow, we will be joined by kate reiner, she will talk about the role telehealth will play in the state-by

there has been some speculation that elon musk has an ulterior motive. with the economy looking worse than it was, the deal was looking like an increasingly bad one for the world's richest man. whether mr musk now has to buy twitter will be decided in a us court with some very expensive lawyers — which, fortunately for him, elon musk can very much afford. james clayton, bbc news, san francisco. earlier, i spoke to gerrit de vynck, a tech reporter at the washington post. he gave me his view on how elon musk withdrawal from the deal might actually work out. it's likely this will go to court, which could take months, years to come to fruition. it'll be very painful — especially for twitter, which has already been very distracted over the last several months, people have been quitting saying they don't want to work for mr musk. the company hasn't been able to make any major moves from a business perspective because it's been wrapped up in this deal — and it looks like this potential legal fight could drag out. and so, the board have said they want to e

that separate titanic legal battle between twitter and elon musk. titanic has hired a merger law heavyweight as it raises to sue elon musk for dropping his 44 billion dollars takeover of the company. let's bring in bloomberg's laura wright. was this expected? >> it is not a surprise. elon musk's enthusiasm for the social media platform has decreased while its credit -- while his criticism has increased. in the termination filing we saw on friday, elon musk's team attributed his reticence to a trio of issues. he feels tread -- he feels twitter's management has not been forthcoming regarding the number of accounts on the platform and they feel twitter has misrepresented's spambots. elon musk is also unhappy with a number of recent dismissals over at twitter. over the weekend, twitters share person shared that they are working under the assumption that the deal will go ahead at the agreed offer price. twitter expected to file in a delaware court today kicking off the legal proceedings. in terms of what happens now, there are a number of potential optio

elon musk saying he wants that moved to february or later. twitter wants the child to start in september. elon musk saying twitter drag its feet on the deal and is now rushing this trial. i want to bring back ed ludlow. not surprising that elon musk would not want to rush to court on tuesday. ed: most of the lawyers bloomberg has spoken to felt twitter had a pretty good case to hold muska to account to the deal -- musk to account to the deal. the expectation is this will be a protracted legal proceeding. elon musk is accusing twitter of having drag its feet over the negotiation of the deal and now rushing to court. the sticking point for him is -- and what people argue -- is twitter was not forthcoming in the timing, frequency, or what they shared on the issue of bots on the platform and he is going to argue that is adverse effect, thus avoiding the deal. emily: we were speaking with a professor earlier who said not surprising that the judge granted this request for a tuesday hearing. what is 20 happen on tuesday will be more surprising. he s

he waved due diligence, elon musk did. and that has always been something that has not made any sense to a lot of people. katie: is there a possibility that someone not named elon musk could come in here and make a bid on twitter? >> that would be complicated, it would have to be pretty brave to make that decision. the interesting piece of reporting that we forget quickly about is that according to the washington post, elon musk started speaking to potential equity partners last week. as at that point, there were lots of across the world private capital, strategic investors, silicon valley names participating in a deal. what about all those people? now, his decision to terminate the merger agreement, and i guess the other one, twitter is rolling with this, they want to fight this. but a legal battle? this could go up to 10 years in a worst-case scenario. katie: that will keep you busy. thank you so much for your time. for more on twitter, we are going to welcome the senior equity analyst. he has a whole rating on the stock

elon musk. "russia, hello?" the other western name as popular among ukrainian troops is �*boris johnson'. but even though he'll soon be gone, there's still hope that britain will continue to back ukraine. translation: now we're - defending western values here. modernising our army and providing sufficient weapons will bring peace to your country, to you in britain. russia's already targeting the city of slovyansk. it still outguns ukraine and has the advantage in electronic warfare. home—grown ingenuity and western support is making a difference. but is it sufficient to halt the russian advance? jonathan beale, bbc news, the donbas. uk politics now. the list of potential candidates to succeed borisjohnson as leader of the conservative party and become the next british prime minister has grown. rishi sunak, who resigned as finance minister on tuesday, says he wants the job, but many conservative mps are calling for borisjohnson to leave downing street immediately. our political correspondent alex forsyth has

suing elon musk, ed ludlow with the latest. i know you have been coming through the complaint and twitter came out swinging. ed: it's interesting to see the share price reaction, because we are both hearing that it's not twitter trying to get damages or twitter trying to save face. this is twitter saying elon musk, we are holding you to the deal. emily: pay up, 44 billion. ed: you know, they are at pains in his long court document to point out they did hand over lots of information to elon musk and they tried to donate it -- demonstrate that it was elon musk who was not cooperating. he was not engaging with them, he was not for filling his obligations under the deal. emily: so instead of saying we gave him all this information, he did not even look at it? ed: there are screenshots throughout the filing, where they basically say we engage with you. we handed over data, we tried to explain it to you. remember that last week, thursday, twitter executives gave a briefing on bots. if you hours later, the washington post story comes

that buyer would have to be more reliable than elon musk and twitter must have known that. elon musk has a track record of being an unreliable buyer through his tweet saying he would take tesla private and that never happened and there were punishments for that. obviously, they knew they may be dealing with an unreliable buyer, it's still worth it even if he doesn't come through because we feel we are on strong enough legal footing, we could sue. if there was another buyer, they probably would've gone that route several months ago. >> do you think there are teams of people devoted to get elon musk, like they are so furious he is acting this way in public and is making a mockery out of the rule of law? >> i would have to imagine the leadership think so and elon musk probably think so as well. you certainly thumbs his nose at the fcc whenever he gets the chance to and is not shy about it. this is an existential question for government, what happens if someone doesn't care about regulations like this? you can only find someone so much money if they are the wealthiest man in th

elon musk has taken off, according to the jet tracker on twitter. sources tell me he was expected to change his arrival time multiple times. the cao and the cfo of twitter are here. let's see what happens, caroline. caroline: let's see what happens. plenty to come from ed ludlow. . we will be going back to sun valley with the eventbrite chairman in a moment. meanwhile, we will get you back up to speed with the verdict on sunny balwani, you remember him, former president of theranos and ex-boyfriend of elizabeth holmes, the founder of that business. he was found guilty on fraud. the decision comes six months after holmes was convicted. valenti faces as long as 20 years in prison. we make the return to sun valley in a few moments. much more ahead from new york and idaho, this is bloomberg. ♪ caroline: let's get back now to the sun valley conference in idaho, where many of the world's top business leaders are gathered to talk deals. we have a special guest, ed. eddie: we do. in the conversation in and around sun valley is around the big-picture, abou

begin with elon

mind of elon musk. thanks so much. coming up, public health emergency. the action president biden is considering to protect access to abortion. and the first major gun legislation in 30 years is now law as the president acknowledges that more has to be done. president president acknowledges that more has to be for at least eight years. for me, the greatest benefit over the years has been that prevagen seems to help me recall things done and also think more clearly. and i enthusiastically recommend prevagen. it has helped me an awful lot. prevagen. healthier brain. better life. it has helped me an awful lot. i was injured in a car crash. i had no idea how much my case was worth. i called the barnes firm. when a truck hit my son, i had so many questions about his case. i called the barnes firm. it was the best call i could've made. your case is often worth more than insuran call the barnes firm to find out i could've made. what your case could be worth. we will help get you the best result possible. ♪ t

they say 5%, elon musk fix with more. in addition, apparently twitter is taking actions that they shouldn't be by firing people that think you did elon musk's consent to fire. in addition, he relies, is elon musk relies on flesh to his detriment -- 35% of the company, so i don't think twitter is in a really strong position, so than the question is, people are saying "elon musk could go to jail." the contempt of court if he does not follow the judge's call, but the bigger issue -- i know -- can be forced to make elon musk buy the company? if he doesn't want to? what's going to happen is there's going to be a negotiation, and i think elon musk will end up buying it, lose interest, buy it for less than he offered. >> up next, get ready to party with us. ♪ ♪ ♪ ♪ a like having liberty mutual. they customize your car insurance, so you only pay for what you need. woah! look out! [sfx: submarine rising out of water ] [ sfx: minion spits bobber ] minions are bitin' today. [ sfx: submarine hatch closes, submarine dives ] â™

elon musk agreed to by the company even in the case of a market downturn. i think this is going to go in twitter's direction which is good for twitter shareholders. but my own personal view as i said last time i was under program, i'm not sure it is good for twitter the service. i don't think twitter being owned by a single person, or take their the one whose public statements have indicated a lack of a deep understanding the way the platform works, artillery the -- particularly in areas of trust and abuse, i'm not sure that is good for twitter the service. that is my view. it has been pretty consistent. emily: let's talk more about why. let's say elon musk is forced to do the deal, he owns twitter. he could turn around and sell it. that is a possibility. if he is forced to do this deal, then what? ali: it is awkward to force someone to buy something that they are saying they don't want. i don't know how he reacts. one thing elon has proven is he is unpredictable and quite, you know, extreme sometimes and what he wants to do. your guess is as good as mine.

that being said, there's a chance that elon settles. let's see where tesla stock is after this report and what that does for his ability to close on the deal if he's ruled there because it sound like a lot of participants are not that interested in doing it. the company is not worth what he's trying to pay for that, basically 50% from where the stock is now. i don't think it's interesting and i don't think it's worth where the stock is right now. >> tesla, the electric automaker is sitting on a nice hedge heading into the quarter. let's get the technical view. >> well, you finally balance between the success and failure. you have this tight range you see, and it's the same chart with a different time frame. take it back further, and we have been having high volatility and low bearing. where this debate or standoff is occurring, it's under the trend line. again, the money guys are going to say something and there are already people shouting not to move it high or low: now it's points off. that's as close as you're going to get. i think i

ed ludlow is out there where elon musk is meant to be landing soon. >> the thrust is that elon musk's team working on this deal do not believe the data twitter is providing about the level of bots on the platform is reliable according to the washington post reporting, that they stopped engaging with potential equity partners, and you look to the reaction on twitter stop down five percentage points, this does put the deal in serious doubt. >> i thought they just reiterated guidance about them. >> the timing of this is bizarre and spectacular because earlier today, twitter executives reiterated that less than 5% of users on the platform are bots. it is a mixture of public and private data twitter holds. as have been reported by multiple media outlets, they have been going above and beyond to give elon musk extra data. if that washington post report is to believed, it is going to make for an awkward situation here. >> it could last years because he cannot just back out of the deal he said he did not need do diligence on anyway. >> this is interesting. i have been speaking to folks in the

manus: some will say that elon has had that sector to himself too long. good to have you with us this week, annabelle droulers in hong kong. one of the big bruising's of yesterday's session, twitter shares tumbled in new york after elon musk walked away from a $44 billion deal to buy the company. that sets the scene for a disruptive legal battle, to say the least. tim is with us from bloomberg opinion. it was the bots what done him in. it looks like elon's complaint might have merit. the bot problem. is it enough to scuttle the deal? tim: i'm of the opinion, i've looked into the way twitter functions and builds bots, i have built a twitter bot and run it, and i think twitter has a lot of transparency into how much bots they have on the system. if they are lying about it, that would be supremely stupid to do. i don't think they are lying about it. it comes down to whether musk wants to trust them and if they even agree on what the term bot means. at the end of the day i don't think it is enough to scuttle the deal, i think it is a negotiating tactic. is it

taylor: they have been writing about the binary options that maybe elon musk or twitter is facing. there could be a billion-dollar breakup fee. what are the options you see here? >> as a legal matter, the parties have decided to cap their damages at $1 billion. the real driver of the leverage and the key to this fight is that elon musk agreed that twitter has the right to get specific performance and force the company -- and force him to buy the company at $54.20 per share. what that really does is structure the negotiations of settlement. when we do that math here, it looks like shareholders could be affected by $15 billion. we think twitter has a 60% chance of winning. then you wind up in a category of 5-8 billion dollars but i think elon musk would have to pay if he wants to walk away. jon: let me ask this slightly differently from the vantage point of what elon musk has put on the table. there is so much focus on spam. how strong do you think his case is? >> he made his case on friday and he set out three points to suggest that twitter has breached its side of the agreement. i

. >>> and elon musk mocks twitter on twitter taking to the platform to blame inaccurate user data for his attempt to terminate the $44 billion deal sending shares sharply lower in frankfurt. >>> good morning happy monday welcome to "street signs." let's get to the data on friday. all of the action dominated from the non-farm payrolls which came in higher. 372,000 which in a way was a bit of bad news for markets. they priced in a more aggressive fed tightening cycle we'll talk more about that on the show as far as the week is concerned, a positive week for equities not so much the case today a whole sea of red behind me all of the stoxx 600 is in the negative territory you see that behind me the basket as a whole, the index is down 1% in the early hours of trading. up 2% on the week last week. down .50% in the first hour of trading. many things on the agenda today. of course, we focus on the weak handover from chinese equities we will get to that in a moment. a tech crackdown there fears about the growth prospects and many of the eurozone economies particularly as we head to the closur

begin with elon musk billing on twitter. the deal site expected to move from the boardroom to the courtroom. costco is expecting another month of strong sales. its ceo will join us exclusively. and are we talking ourselves into a recession? the biden aministration is saying yes. we are going to dig into the latest. let's start with elon musk, claiming the company has failed to provide complete information on spam accounts. in result the chairman did tweet the board is committed and plans to pursue legal actions. musk replying with meme's, laughing at the process. >> i think the delaware chancery , and david you can argue with this, but they have to protect the notion of delaware as a place for corporations. as much as musk is poking fun, i do not think the chancery is going to be a role. >> there are so many different things to discuss here. this happened late on friday. there has been a lot of opportunity for people to write about it in the last couple of days. we are going to end up in the record, probably pretty soon. we

what would it look like if elon wins here? >> if he wins, it's simple, you will have to present a fraud claim and say i got information incorrect, i relied on it to my detriment and had twitter been truthful with me, i would never have paid this money. in reality, it's a negotiating ploy because twitter's stock price drops dramatically in interest rates have spiked up to the cost of financing the deal has increased exponentially he's going tosent a fraud claim and he's right, the good news for musk, he is a gambler, you won't have to pay the $1 billion breakup fee anyway because the contract was induced through fraud. kennedy: so what if twitter wins? if they successfully push the issue and taken to court or make it seemed like they are going to, will they be able to force the merger? >> that's a good question, we had never seen a judge order the remedy that twitter was, specific performance. they want musk to go forward with this. we've seen it in smaller deals but never deal, 45 or 46 millior so that's going to be part to fo

how big will elon musk damage twitter? this will play out over several months, if not many years come may. >> what was going on? i wonder in his mind. just making the decision to buy it and then going back. i guess we will see. >> he bought it on impulse. >> it seemed impulsive. >> andrew, it was a horrible idea. i bought it on impulse. it was a horrible business idea. teslas stock went down. i mean, there was no reason. no logical reason why that i should blow $44 billion on twitter. >> but here is the thing, joe. you are totally right. look, the company was worth $44 billion at the time. it was a big premium he was paying. today people think it's worth half that given the way the markets have moved. how much of this is buyers remorse? which, by the way, buyers remorse is not a reason judges typically go along with. again, that will come into play here too. >> all right, cnbc's andrew ross sorkin, thank you so much. >>> an active fire is underway as crews worked to save a national treasure. the giant sequoia's in yosemite

>> we do have a statement from elon musk attorney. it reads quote twitter has failed and refused to provide this information. sometimes twitter has ignored mr. musk's request but sometimes it has rejected them for reasons that appear to be unjustified. and sometimes it has climbed to comply at will giving mr. musk incomplete or unusable information. nicole this is the weirdest tug-of-war. >> it is tit-for-tat with the world's richest man probably most eclectic man as well with the larger social media platforms. that's really what's playing out right now. we may beat making into something much bigger than it really is pretty comes down to the business details of it all. elon musk, he had been a proponent for free speech are saying it's really he was embodying up to dorsey who obviously was not a component for free speech that comment we played earlier on msnbc where he is essentially saying it elon musk takes over all the said there's going to be censorship of the political party it's like oh my gosh. your own data shows conservative v

if they do, if elon does lose, a judge could force elon to pay a ton of money. he could -- lauren: more than the break-up fee. >> if elon says no, he could impound elon's assets. he's said -- to the legal authorities. and you know what that means, right? [laughter] a judge could essentially pound his stock which could cause a massive cascade -- lauren: the credibility of the court is at stake too. >> there's ways to to, and tesla's incorporated in delaware, like most companies. so this is a really tricky thing for -- lauren: what do you think is going to -- >> i can only go with what the general consensus of legal experts. elon's a wildcard, but if this thing plays out to form, it settles somewhere in the middle, and they don't want to wait a year to get this money. by then the stock could have a 0 in the symbol, right? -- 20. it's not that far off. tesla is losing money, it needs to get its act together and, essentially, repair its business model. it doesn't need this. so suppose if elon says 40. they go for i. -- for it. lauren: you think he'd go that highsome

because elon musk was already threatening to back out. now if the twitter deal falls through, that lawsuit goes forward. tonight, we spoke to an attorney representing those shareholders. >> there is everyday people that are shareholders in twitter. and everyday people that are being harmed by elon musk backing away from this transaction. people have money in their retirement accounts and pension funds for instance. >> those shareholders say that elon musk deal promised them $54 per share, that is about $20 million more than what their stock is worth if he pulls out. elon musk and his attorneys claim that twitter violated its contract because it has too many bots or fake users and that impacts the company's bottom line. >>> let's take you outside and give you a live look at the capitol. hours from now, more bombshell testimony is expected coming out of the january 6th committee. lawmakers will cover the involvement of far right groups and the potential connection with the white house. the committee will also watch the recorded testimony of

let's see elon musk is forced to buy twitter. what do we think he's going to do with it isn't that sort of the worst-case scenario, being forced to buy something he doesn't want what does twitter want to get out of this? >> they want the deal closed, that's the best case scenario for shareholders i think the stock trading at 36 goes to show that the market does not have a lot of confidence that that's actually going to be the remedy that is ordered and that actually comes to pass. so they want 54.20 then the question will be whether the court actually orders him to do that. if it does, what happens then? ban vaccination to comply. elon has to fund his equity commitment that has to be paid out to the twitter shareholders there's a lot of steps that have to take place and a lot of uncertainty around how that plays out. >> morgan, what if this is a case that will take years to see conclusion if it, in fact, plays out the courts which seems almost certain does twitter, in order to pursue this case, have to keep its business largely u

ros: this sounds like good news for twitter's lawyers and elon musk's lawyers. perhaps a long drawn out and messy affair for the two protagonists. guest: indeed it does. that's the concern -- if things get dragged on too long, how will twitter do as a platform? other concerns have been raised about what is going to happen? we are going to see other social go after twitter's advertisers and certainly some of the people who use butter. there's this community of folks who care tremendously about twitter. then there's the rest of the world. the question is is that community, they like to think of themselves as being importt and influential in the wld, really enough to drive things forward or is it possible someday we would see twitter go away? not predicting that's going to happen anytime soon but all of these questions get raised when these concerns come because the momentum there supposedly had has completely disappeared. ros: bob o'donnell, thank you very much. we appreciate your help on that story. just returning to the story that has been developing through the

. >>> blue chip make elon musk is pulling back on the deal to buy twitter. >>> and china stocks sink as covid and crackdowns give investors reasons to worry >>> president biden defending his decision to visit saudi arabia all this as oil stays above $100 >>> later on, europe on the edge key headlines you have to know about with the region's growing energy crisis growing. it is monday, july 11th. this is "worldwide exchange. >>> well, good morning, good afternoon or good evening. welcome from wherever in the world you may be watching. i'm brian sullivan good monday morning. let's jump in on this busy day coming off one of the best weeks for stocks that we have seen in a long time. all the major averages did pop last week, but that is not following through this morning futures down dow down 1813. nasdaq off .7% with the move higher, you have another big firm cutting forecast today lowering the s&p 500 year end target to 4,200 and cutting the index earnings forecast by $4.50. that may weigh on the market fair value is in the green a long way to go yields on the bond market at 3.05%. com

it is escalating between elon musk and former president trump, elon musk and hunter biden, and elon musk and an msnbc anchor. congressman jason smith talks to us about it coming up on "the evening edit." ♪. i'm mark and i live in vero beach, florida. my wife and i have three children. ruthann and i like to hike. we eat healthy. we exercise. i noticed i wasn't as sharp as i used to be. my wife introduced me to prevagen and so i said "yeah, i'll try it out." i noticed that i felt sharper, i felt like i was able to respond to things quicker. and i thought, yeah, it works for me. prevagen. healthier brain. better life. ♪ well, the stock is bubbling in the pot ♪ ♪ just till they taste what we've got ♪ ♪ ow, ow ♪ ♪ with a big, fresh carrot ♪ ♪ and a whole lot of cheese ♪ ♪ and the mirror from your van is halfway down the street ♪ ♪ well, you can say that -- ♪ wait, what? i said, "someone just clipped the side view mirror right off the delivery van." when owning a small business gets real, progressive gets you right back to living the dream. now, where were we? why

elon seems scattered. he seems not focused at a time when ramping these new facilit ies is like key to the company, and then you just sit on the sidelines lauren: i hope i'm not going too far in left field but he's got a lot of problems on his hands. that's a joke. dan, al, thank you very much, and potential lawsuits, because people are losing money as all of this is playing out. well the big banks are about to lift up the hood on the second quarter and their earnings reports. our floor show is here to tell us if earnings season will pave the street with gold, after a disastrous first half to 2022 but first let's check the big boards the dow is down 185 points off the low but close to it as we're in the final 47 minutes of trade. the "clayman countdown" coming right back. riders! let your queries be known. yeah, hi. instead of letting passengers wrap their arms around us, could we put little handles on our jackets? -denied. -can you imagine? i want a new nickname. can you guys start calling me snake? no, b