tv Bloomberg Markets Bloomberg March 21, 2016 1:00pm-2:01pm EDT
what this is >> this is live coverage from cupertino, california is all about tomorrow's hearing in riverside, california where apple will face off against the u.s. government. we break it all down for you this hour. first, i want to get straight to cupertino where cory johnson is live on apple's campus. we are expecting to see a new, smaller iphone among a slew of potential other products. set the stage for us. at apple headquarters, one infinite loop is a place with a time at focus has been computers. the focus was ipods, the focus for apple entirely is the iphone here, 60% of the sales of that company come from sales of that product. trying to find a way to fill in and keep the users they have
got, they are hoping they will look at this new iphone expecting to be released today out of presentation -- at a presentation here. not as big a presentation as when they announce the bigger iterations, but a smaller phone what they are offering in the market right now. in addition to that, talk of a new ipad, following up the ipad pro release last year. and yes, hold on to your seats, new bands for the watch. it's exciting. excited about the new watch bands. cory johnson, editor at large. cory: it's the size of this. emily: exactly. what does this they mean for apple? the company, investors, consumers, and how much do today's announcement even manner -- even matter? david kirkpatrick and bret taylor, former cto of facebook. the creator of google maps and
ceo of quit. and dave warned, -- dave warr everybody, thank you so much for joining us. i want to start out with you guys who built heavily on the? -- the apple ecosystem. >> i just launched a new phone. it's probably not huge news, but i think the broader narrative, which is how important the iphone continues to be is a really interesting story. ipad was goinghe to be huge, and the iphone cannibalize its sales. without the apple watch was going to be huge and they are releasing numbers but i think it isn't as big as money people expected. i think it just goes to show you that the iphone and all the phone that inspired have continued to be so important that they are essentially cannibalizing every other device on the planet. you see apple releasing big
phones and small phones. i think the phone continues to be the mobile device. there hasn't been another one has proven to be the breakaway success of this was pure and him happy apple continues to invest. emily: tim cook has taken the stage and cupertino, apple takes on the fbi. dave, what do you think about the significance of a smaller phone, if indeed that's what we ae, as well as potentially new or pro and new watch bands come as corey says. excited about the possibility of a smaller phone. it's a unique and interesting move for apple. in times past, apple listening to customers and going back to a size that they had been doing a pretty newually move. for my own experience, there are people of the small phones,
seeing that come back as a pretty big deal. emily: it may be called the iphone se, with a four inch screen. potentially there are some upgraders who haven't done so yet. take? what is your there are so many people around the world and get excited about these apple events. is this one as big a deal? david: it's not as big a deal as the next iphone seven or whatever, presumably that is what it will be called. called it right. the iphone is now so central to apple strategy and so essential to the global tech ecosystem that a new device makes sense. it's a brand extension, they haven't focused on that as much historically. i think they're trying to keep the excitement about the iphone alive in a variety of ways. where is historically, it was one way. one phone,vent with
now they're more and more sub brands within the iphone universe. there's a huge diversion article as people who want to buy phones. around the world, a lot of them can afford the phones that those of us in the developed countries aspire to carry in our pockets. tim cook is- emily: saying on stage that addressing the iphone fbi debate, that there are one billion apple devices globally, and they didn't expect to be at odds with their own government. how important is what tim cook said today, and how much of bearing could this have on the case? he's using a public stage to state apple's position on this issue. cory: i think that's the point. the judge is not going to care what he says here. reading from our blog, brad stone inside right now,
hearing tim cook say we have a responsibility to have you protect your data and privacy, trying to move the public relations of this event a long. to what dave was saying with these annual events to launch the phone, it's a biennial event, where every other year apple has been able to announce a significant change in a phone with iterative changes on the off year. pc competitors who have a faster developed cycle, one wonders if the introduction of this phone in the month of march might suggest a faster development cycle as well as more iterative product announcements in between the major biennial announcements of new phones. been looking at live video of tim cook on stage at apple headquarters. tim cook saying we only to our customers and to our country, this is an issue that impacts all of us and we will not stray from this responsibility. and dave having worked at facebook and technology companies, where this could
really impact the entire industry, we have seen the industry rally behind apple. we're hearing big cheers from the crowd in response to tim cook. at the same time, the government is saying that apple isn't doing ty to our country and national security. bret, where do you stand on this? i am most of my colleagues support apple on this. we are based in the united states, the most companies in technology are global companies. while the u.s. justice department has standards by which they can request these , it's not true of a lot of the countries in which apple and other countries operate. does this mean that apple has to sort of respondent in the same way when china asks for data? without the same due process? what is the threshold of case by which apple has to sort of given to these request? i do think defining technology were these questions don't,,
, is not a practical issue that can influence a case, think it's probably the right direction for our industry. want to get back to julie hyman who's been watching apple shares. they are up slightly today, julie, how does it look? julie: apple shares are getting a lift. some thing that's important in the broader market before you get apple specifically, and that is dennis lockhart, president of the federal reserve bank of atlanta, who is speaking right now. the text of his prepared remarks says that the u.s. economy is strong enough to whether a rate increase as soon as april. that's obviously different view than what we heard last week in the federal reserve commentary. just some to mention today as we watch what's going on with the broader markets. getting to apple, we're not seeing much change in the shares. that's not entirely unusual for what we tend to see on these announcement days. if you go all the way back to the first iteration of the iphone, when it was announced
there was a big pop in the stock. that one aside, the average stock is about a 1% decline on the days when the stock is announced. when you look at apple performance over the past year, it has, of course, not been the smoothest run. mirroring what we have seen in the broader market as well. it has bounced from the lows, but still has not retained we saw laste highs february. elsewhere today, i want to mention the other stocks we're watching. marriott and start would continue to be on our radar as starwood has agreed to a higher bid from marriott that was --peting with the bid led by marriott is falling. it's a different file -- a different story in the timeshare industry. --dham is one of the most one of the worst performers.
there was a civil investigative demand from the consumer financial protection bureau in october. we are seeing other timeshare companies fall pretty sharply in today's session. again, overall, not a lot of change in stock, we have some interesting individual company stories. emily: julie hyman, watching apple shares for us. you are watching live coverage of apple's big events in cupertino. i'm joined by bret taylor, former cto of facebook, dave kirkpatrick, editor at large cory johnson standing by at apple headquarters. we are expanding apple to unveil a smaller iphone, a new ipad comments and updates to the apple watch. the head ofackson, sustainability for apple on stage right now, talking about this goal for apple to be 100% renewable company, but of course, a lot at stake here when
it comes to the encryption debate. that on aprilting 1, apple is 40 years old. they're taking a look back at where they come from and where they are. in advance of that anniversary. bret, i wonder if i can ask you a question. you guys in developing quip, some adjusting work on the apple platform as well as many others. apple is going deeper and deeper into services. i wonder if we might expect to look for, what have things you might be looking for in terms of apple discussing services and indeed, how this new phone might fit in to users using apps and services. one of the most adjusting trends we've seen our services like siri, the, nation of protective services invoice automation. today, is largely been centrally built into the phone, but not as exposed to record to developers. i would be really interested in seeing if they can expose voice
and automation to developers in a broader way. i think it would create a really interesting new class of applications. olivia: let's take a -- emily: let's take a listen to what tim cook had to say moment to go with his perspective the government at this very moment. not expect toid be in this position, at odds with our own government. strongly that we have a responsibility to help you protect your data. and protect your privacy. customers, and we only to our country. it to our customers, it to our country. we will not shrink from this response ability. emily: tim cook speaking at his event in cupertino. dave, apple is an interesting position with respect to the
fbi. at the same time, when you look at the business, there are some real concerns about sales of the iphone going forward. analysts are saying this is the first year in a decade that we will see sales decline. are we under overestimating the power of the future of apple? dave: on the privacy debate, this is one of the most fundamental important questions in the world right now. it's about privacy, it's also about freedom of speech. last week, vice media release a report that said there has been a chilling effect on line since a lot of these surveillance things came to light. emily: meaning what? dave: people are afraid to speak their mind, afraid to talk about the important debates that are a part of civil society. these kinds of questions are extremely important, not just for keeping your own data safe and these important things that tim cook is talking about, but also these are questions of freedom and freedom of speech, which i think are extremely
important. time, davide same kirkpatrick, the new york times has reported that engineers and apple have openly discussed quitting if this came to pass. if a judge ruled that apple and their engineers would have to make this master key or write new software to enable the government to hack into this phone. at the same time, there are real business implications and business concerns for apple. how does the company away these these?h david: the country will respond if they are obliged to, regardless of the ethical displays of engineers. wouldrstand why engineers be reticent to participate in. we may see people resign or be reassigned. i don't think it in any fundamental way undermines apples ability to comply. the company has been clear, they will comply with their order to do whatever they are ordered to do. i think it's a hugely complicated issue, this
encryption thing. i think there's some degree of posing on everybody's part, including the company. if we have more time as the show goes on, there are subtleties that are worth discussing. i do agree with dave, it's an issue of freedom. that is key, freedom of speech. that is what apple is trying to defend. emily: david kirkpatrick, tim cook is back on stage right now. at their event at apple headquarters. we will be right back with more of live coverage.
mark: this is bloomberg first -- first word news. president obama's meeting with raul castro the revolutionary presidenthavana, the mr. castro met before. in 2013, they shook hands at the funeral for former south african president nelson mandela. an american president hasn't visited cuba and almost nine decades. we are expecting to hear from both leaders later this hour. about 40 rabbis plan to boycott donald trump speech before the american israel policy affairs council today. comments about israel have led to concern among some members of the user -- the jewish committee. democrat front-runner hillary clinton spoke this morning. her rival, senator bernie sanders, is skipping the event. senator sanders scored a major primary history among american
democrats living abroad. more than 34,000 americans living in 38 countries voted by internet, mail, and in person earlier this month. sanders earned 69% of the vote, and nine delegates. mrs. clinton 131%, picking up for delegates. four delegates. of a man wase dna found in a house that was used by the terror group. they say he left through syria in february of 2013. a man was arrested in brussels after a four-month manhunt. the prime minister says there were hundreds more radicalized people in belgium. the one weather agency says hotter temperatures around the globe are now the new normal. meteorological organization is predicting a warmer weather accompanied by pockets of both dryer and wetter conditions, depending on the region around the world. i'm mark crumpton, reporting
emily: welcome back to bloomberg's special live coverage from apple headquarters for bloomberg television and radio, and emily chang in san francisco. williams is on stage right now, tim cook making comments just moments ago about the iphone lineup. take a listen. cook: we built the iphone for you, our customers. and we know that it is a deeply personal device. iphone is ans, the extension of ourselves. get straight to our editor large, cory johnson outside the event of apple headquarters in cupertino. let's talk a little bit about the apple watch. this was tim cook's pet project. we still don't know how well the watch is doing, except anecdotally.
apple is not going to come close to breaking that out until they have to. until it's 5% of sales, they don't have to. we listened to these anecdotal things, and one of the things we try to get people to do is look at the different use cases. behind me an apple headquarters, in cupertino, california, jeff williams is on stage talking about apple's health initiative, specifically about some of the things they are doing with the watch. talking about researchers at johns hopkins are using the apple watch to study physiological feedback from people who have seizures while they are having the seizures and to draw data from that, the data that is drawn from the watch. if not the most complex data that medical science can give us , but the fact that they can roll it out to so many people may allow for a much more robust and faster studies. it's interesting to look at the tools they are trying to use and to encourage people to use that apple watch. it's also worth noting that competitors like fitbit are out
there with watches in the marketplace, if you look at the online forums and amazon.com, there's a lot more excitement about the fitbit blaze than the apple watch right now. emily: perhaps there's nothing to be said for a more specific taylor,arable, bret former cto of facebook and ceo of quip with me. , all of us have apple watches, but none of us are wearing them. what do you think about this product, candidate, with some sort of update, become a must-have, will remain a niche thing? bret: it's aboard maintain a long-term view. i worked in the days of the ipod before the itunes music store. the only room is the thing that changed music. no one remembers
when it was hard to get your music onto the ipod. you had to rid your music off-season and put it on the ipod. it made it hard to find use cases they liked. now you look at the ipod and you have great music use cases, people using it in education, for all different kinds of contents, you see the resurgence of podcasting now. i think that when you look at the apple watch, you kind of have to take the same long-term view. invest, notling to just for a one-year, two year time span, but only a 10 year time span to turn the apple watch of the something that's fantastic. my hope is that apple's focus on health as they are highlighting this morning will become even more and more interesting as time goes on. the sensors will get better, the os will get better, the health use cases will get us to a place where hopefully we are understanding things about her body that we never imagined and we can make better decisions. emily: as a guy who needs to know about all the different platforms? bret: i come back to the fact
that the phone was the center of the mobile ecosystem. emily: can watch become more central? bret: i do think so. it's a perfect analogy. most of us what we switched off from the apple watch, we are phone as our watch again. we're using it for this use case. as a phone and better watch than the apple watch? no. when it comes down to it, i have to have my phone. i don't have to have the apple watch. i've yet to see a mobile device that isn't niche by iphone standards. new skin be a significant and meaningful business, don't get me wrong. but you are never going to see something in the 2 billion people to 4 billion people using a category. i've yet to see it. apple is investing in a lot of different areas, the living room with apple tv, i really believe what dave said, which is i am long on apple. there is one of the most innovative and creative companies in the industry. but i think it's really hard to have a device that for most people, their phone isn't good enough.
i think that the fundamental challenge. moran,bret taylor, dave are are -- dave morin, they sticking with us. julie hyman watching apple's stock. julie: apple stock not doing much today. not unusual. we don't have the actual product announcement yet. typical, apple has been talking about what they're going to talk about for days. when you get the product announcement, at least stock wise, and can be a little anti-climactic. we will see once we start to get more details about the product. i wanted to point out that this month has been a very strong one for apple. coming into this event, if you take a look at the bloomberg and eag map, you want to use the upper left-hand corner, and the 10% gain we have seen for apple shares this march is the best monthly performance since november 2014. we will see if it does hold up. there are other movers today they are mentioning, valeant is
certainly one of them. valeant pharmaceuticals announcing the departure of ceo mike pearson, he will stay in the interim. also other changes of the company, including the appointment of bill ackman to the company's board. emily: julie hyman, thank you. we are continuing with live special apple coverage. we are digging into the debate between apple and the fbi. tim cook back on stage now in find fantasy shows. when it comes to the things you love, you want more. love romance? get lost in every embrace. into sports? follow every pitch, every play and every win. change the way you experience tv with x1 from xfinity.
emily: welcome back, i mentally chang in san francisco. this time for the bloomberg business flash, the biggest business stories right now. shares of valeant are rising after a big shakeup. ceo mike pearson is stepping down, and billionaire investor bill ackman is joining the board. former cfo howard schiller is being asked to resign over what valeant calls improper conduct. he denies the accusation and may be forced to pay back millions in incentives compensation.
dennis fed president lockhart says the u.s. economy is strong enough for another rate increase as early as next month. inthe text of a speech savannah, lockhart said there's sufficient momentum evidenced by the economic data to justify a further step at one of the coming meetings, possibly as early as the end of april. margaret says he backed the fomc one sees -- the decision, it is likely to require that rates normalize next year. the fed meets again in april. meantime, jeffrey lacher says inflation will rise once oil prices stabilize and the dollar stopped appreciating. he spoke at a conference in paris today. inflation, core inflation of close to 2% next year. i think it will generally be firmer this year than it was last year. memberhe is not a voting
of the fed's policymaking committee this year. paypal ceo dan schulman says the company's money transfer service will enter cuba by the end of the year. paypal zoom specializes in cross-border money transfers. cuba spends about $2 billion annually to the united states. the service will make a sending money faster and more affordable for the cuban people. we will be right back with apple live coverage, that is your bloomberg business flash. more coming up. ♪
emily: welcome back to our special live coverage of apple's product announcement, i'm emily chang in san francisco. cory johnson, our editor at large is outside apple headquarters in cupertino. the headlines are already rolling in, we are getting new watch bands, apple is also dropped the price of the apple watch to $299. we are talking about apple tv, saying there are now 5000 apps
on the system. what do you make of the watch price drop? think that's pretty significant. cory: i would agree and use that word, significant. ways towards long popularizing the watch and getting to more people use it. i think the right way to think about the watch is and as a standalone device, but as an accessory to the iphone. there's no way to have the watch without already having the phone and using it as that accessory, whether it's to look at text messages were two other things that operate off the watch. i think it's important to look at them lowering the price becomes more of an accessory for more iphone users. the takeaway we may end up having his we have a cheaper phone and a cheaper watch is that apple is trying to raise volume and unit sales by lowering prices of devices. johnson, emily: cory live at apple at quarters in cupertino. joining me, bret taylor, dave , and themorin
bloomberg interviewing editor in new york, david come out to you. what are your thoughts on the price drop of this watch, product that tim cook has really banked on? david: it's important, and cory is right, it becomes a more appealing accessory with the pricing. my feeling with the watch in general, you can't say never about consumer devices. think apple has to be playing around with different kinds of interfaces and it's smart that they are. we have the are on the facebook side, watches on the apple side. some say these two might converge in some weird way. it won't be phones like we know them forever. emily: we now know that apple has officially introduced the smaller iphone called the iphone sc, the specs are rolling out now, but it's official. how significant have a smaller iphone will be?
there are people who want a four inch screen, they go for it. -- they prefer it. bret: there's the formfactor, apple wants to win in this market. they want to make sure there's no reason to go purchase an android phone. having all sizes and form factors and price ranges is extremely important. one of the interesting factors if you make mobile apps like we do is that ios is doing really well in the western world weather's credit and subsidies from carriers and operators, see are not paying full price for your iphone. in most markets though, without credit, you tend to purchase your plan with your carrier separately from your phone, and you are paying list price. if prices you out of things like the iphone six, which costs over $800 if you're not getting a subsidy from at&t are verizon. it will be adjusting to see what the price ranges. the lower the prices, the more the iphone is a viable device outside of the market with really heavy carrier subsidies. we know it comes in rose
gold and gold as well. they're saying on stage now this is mostly for new customers. so not like you, apparently. i think having price factors that are accessible and form factors that are accessible is better for the overall iphone. it's better for developers and for everyone. i think definitely this is designed for those new people. i found myself desiring to have that old size because the smaller sizes great, but the older phones were too slow. it will be nice to see how this phone performs. interesting, cory johnson outside of apple headquarters, some analysts have said they only expect apple to sell maybe 10 million to 20 million of these smaller iphones per year. how significant will this actually be for the bottom line? maybe that number is wrong. here's why i suggest the numbers wrong. stage, they are saying right
now, last year apple sold 30 million of the four-inch phones, the older versions of the phone. suggesting there's a big market for that phone. and new sales, not just like the users. people just prefer that formfactor. million, i think they sold 231 million phones last year, that's about 13% of all the phones, about 13% of all the phones they sold last year. more of those four inch phones. apple looking at that and saying we are putting people, new users onto our ecosystem who will not be able to use a lot of the services and tools for developing. maybe this isn't a response to that. emily: we know it comes in four colors, white, black, gold, rose gold. david kirkpatrick, this is a phone that has a 12 megapixel camera, a new processor, it's basically iphone 6 in a smaller size. what do you think about the
importance of this product? david: i know a lot of people who still have the smaller phones in the united states. the market is global, that's really where we have to look. you notice these new phones are already coming in these colors but they especially like in china. china is where apple looks for its greatest growth in short-term and long-term it say. i think it's important. i would reiterate that a variety of different products, range of things for the area is most important for apple makes a lot of sense. they are just diversifying their offerings for a diverse human race. emily: bret taylor, former cto youacebook, dave morin, guys even watching a live blog and talking about yourself, they should've done this, they should have done that. what do you think now that we know the actual specs? bret: i was surprised at the way looks great. it looks at apple to the iphone 5. emily: it's boxy. it's a nice design, i
thought they were going to align it with the design standard with the iphone 6. i don't know that the supply chain thing worth it explicit thing. dave: i definitely agree, the design is surprising. i think that a lot of people love the design. i think there are some funny comments on these live blogs about apple going into a benjamin button phase of design. theink both this design and design previous were actually great designs. you can actually upgrade them and probably have a lot of customers. millennials do love vintage analog old-school goods. emily: you are listening to live coverage of the apple events, the launch event in cupertino. they just unveiled a new and smaller iphone, the iphone sc. e. cory johnson in cupertino. phone,here's a four-inch
a five inch phone, the 5.5 inch phone. small handed people can rejoice. donald trump may change his mind about the iphone now. [laughter] bret: oh man. emily: cory johnson, editor at large. in cupertino, we're watching apple stock. apple a session lows. you're listening to live coverage of apples event in cupertino. they just unveiled a new smaller iphone. they unveiled new apple watch bands, potentially new ipad to come. the first thing that tim cook talked about on stage was apples standoff with the fbi, very important hearing scheduled tomorrow, where we are potentially expecting a ruling from the judge as to whether apple needs to comply with the government order to unlock an iphone used by one of the san bernardino shooters. i want to bring into this conversation and o'connor, ceo of the center for democracy and technology. now. us live
obviously a very important day for apple to sort of set the whatahead of this hearing, do you think you're going to be seeing in the courtroom tomorrow? >> this is a momentous case, not only for apple but the whole tech industry. it will set the tone for how much government in truth and we are going to see in our daily digital life, wherever we are using devices. we don't be the judge will rule from the bench, and we're only to hear from a handful of witnesses tomorrow. it's a small case in terms of the procedure, but it's a big case in terms of the history of the next decade. nuala o'conner. -- emily: nuala o'conner. we still have david kirkpatrick, bret taylor, and dave marin pick -- morin. government is asking apple to do, is it really that egregious? and really, is there no other way to do this?
bret: i can say safely as someone who doesn't work on the iphone, i'm sure there are other ways that i'm not aware of, there's a lot more nuance there is david mentioned earlier. i think the fbi and apple are somewhat over simple fine on this issue. fundamentally, there's a shortcoming in older iphones which is that the passcode essentially been brute force it. apple has the capability to upload a new operating system. emily: it's a flaw. bret: the irony is that flaw does not and will not exist for future iphones. it's a short term workaround that the government is asking apple to do. the philosophical issue for a lot of people and technology is can the government compel a company to make a backdoor workaround for protections that we put in place for good reasons. it's the reason why a lot of people in the government can carry an iphone and to secure device. there's a lot of oversimplification on both
sides. i think the discussion we are having, the debate we are having is a country in a society is extremely meaningful. it's very easy to point a finger and apple of the fbi and say you are over civil fine. i think a really happy that this discussion is happening and happening in public. because most of these happen in secret courts and things you can't even talk about publicly. i think it's a really healthy debate. obviously, i'm on the side of apple on this one. i work in technology, i think our customers trust is fundamental. the moment that people realize there's a simple way to break that trust, it impacts not just our sales, but our brands and the overall perception of technology as something of a personal device. and to save device. i understand the nuance. cook is addressing this issue head-on today before the world stage. there have been talks, dave morin, that we will see apple announcing on hackable offering system in a truly on hackable phone if such a thing is possible.
others say they're just not ready to do that. do you also think that that's the direction that apple is going in, and should apple and any tech company be able to make products that are completely on --kable, worn free spaces? warrant free spaces? dave: this is an extremely important question. i think the question here is one of freedom. how do we create spaces and technology where people feel ok to speak their mind, talk about the things they want to talk about, we have civil discussions about really important issues in society and not feel as though we are being surveilled or watched and censor ourselves. at the end of the day, his country was founded on principles that enable people to speak their mind, to talk about the important issues, to bring the issues to the public and to have town squares and to do it in a way that is free and open and provides a civil discussion. i think these questions are those of that nature. how do we create spaces where
people feel that their freedom is protected and maintained, and that they can express themselves and talk about things and do it in a way that is fundamentally american. emily: apple just introduced a passcode to improve privacy. i want to get back to nuala o'conner. i feel it's important to her the government's permission -- position here. they say apple is cover rising art natural security -- national security and behaving as if it's above the law. should apple be able to create places the government can access? >> there's no question in my mind that apple is taking the right position. it's for all companies and all citizens. the previous speaker so beautifully said that we need to create safe spaces for a digital
selves, for zone of privacy as individuals. whether it's a phone or a house or a car whatever device you are encased in her using, you need to have a trust in the device and that manufacturer, and to compel a private sector actor, whether a tech company or other company, to create some new product to serve the government's needs is actually an incredible overreaching and overstepping on the parts of the federal agency. we are concerned about the precedent it sets, whether this particular case is overstated on either side, i'm not sure that's entirely right. i think you cannot overstate the important -- the importance of the president of this case. nuala o'connor, thank you. you're watching live coverage of the apple event, let's get back to julie hyman. julie: if you take a look at the major avenues, have a little bit of a bump in a very tight trading range today. we talked earlier about dennis lockhart of the atlanta fed
saying an interest rate increases possible in april, that's not seem to cause much of a ripple in the stock market today. in terms of some of the best percentage performers today, we mentioned starwood on the rise today after accepting a higher bid from marriott. alumina also rising. apple shares of just turned negative, just marginally. more on the latest product announcement, after the break. ♪
mark: this is bloomberg first word news, i'm mark crumpton. president obama and raul castro are scheduled to give her marks in havana in a few minutes. earlier, both men should cans and warmly before the start of their meeting in havana's palace of the revolution. the palace is home to a memorial to cuban independence heroes. president obama is the first
u.s. president to visit cuba nearly 90 years. -- his tripstory of continues. for leaving for argentina, the president plans to meet with cuban present -- political dissidents. of -- president obama is urging better civil rights. the visit will immediately result in economic breakthroughs for u.s. corporate representatives who are traveling with the president, nor is it excited to listen to criticism from republicans and some democrats that mr. obama is meeting with mr. castro while the cuban government continues to imprison political opponents. but the white house does believe the triple serve to strengthen the president's argument that for the last half-century, u.s. policies towards cuba have failed and only american engagement with the island and its government can change its future. donald trump's presidential campaign will add security to
its larger events. recent rallies have been marred by outbreaks of violence. a spokeswoman for trump says the republican front-runner doesn't condone any of the fighting. for the second time since friday, north korea has testfired ballistic missiles into the sea. south korea says kim jong-un's five short range missiles earlier today. global news, 24 hours a day, powered by journalist all over the world. i'm mark crumpton and bloomberg new york. ♪
emily: welcome back to bloomberg's special live coverage from apple headquarters for bloomberg television and radio, i'm emily chang in san francisco. cory johnson is live from apple headquarters, and a lot of headlines coming out of this event. we have the price now the smaller iphone starting at $399, which is actually fairly low. also some discussion about apple
tv. there are now 5000 apps on apple tv, something we have not touched on. tim cook saying apple tv is all about siri. pointi think that price again, both the price point on the watch coming down and the is thene on the phone price coming down for new device. the iphone 5 was $450. now the new phone with improved features at $399 is a substantial move down in price for them. the way that apple used to go down market was to sell their older stuff. i think in the shift to the world of services, when they recognize that what they're going to be selling is the used of the moreuse case modern stuff, they are trying to shorten the upgrade cycle and offering a new phone at a lower prices and we really haven't seen from apple. they used to be the cheapest stuff was the oldest stuff, not so much anymore. cory johnson, our editor
at large at cupertino, apple headquarters. apple announcing now a new ipad, a 9.7 inch ipad pro, we've been vicening to apple's president of marketing on stage. take a listen. >> some people asked us and some people even pleaded with us to please keep the four inch product in our lineup. today, we're going to do just that. we're going to make it a whole lot better. as you may have heard, we are calling it the iphone se. emily: vice president of product marketing at apple. cory johnson, our editor at large, live in cupertino. uso david kirkpatrick, with from new york. we also have bret taylor, former cto of facebook, and dave doeren, who worked -- dave morin who worked at facebook. we talked a bit about the phone and the potential impact of it. we know there's a new ipad as
well. i'd like to dive into current and future products, and also touch on the importance of apple tv, because it something that we haven't discussed. dave morin, your quick take away on every thing we have seen laid out. dave: the new ipad is really adjusting. the ipad pro is more interesting than i think apple is giving credit for. the fundamental change in the interface, this new pencil interface i think is actually a dramatic new interface for drawing and doing things on a device. emily: initially, the stylus was mocked. along.t needed a come if you actually use the pencil product, it's incredible how close it is to feeling like paper. most of the designers that i work with have said this is a fundamental and totally new way of interacting with the computer. i think that's pretty important. a smaller size, lower price, that accessibility is given to more people, that feels important. emily: we've been talking about
the future of apple products, and whether apple can innovate fast enough. we have a new phone, smaller phone, a smaller ipad to can apple sustain the innovation we've seen over the last decade into the next decade? bret: i think they're well-positioned. they have a meaningful product. emily: amazon is killing it. bret: as we were talking about on the break, apple should have done alexa. the same with their siri technology and apple tv already being stocked and sold for so long that they didn't develop that interface. on the other hand, they have a really high quality wearable in the watch, they are really high quality living room device with apple tv. all of this technology and services around series and the app store -- around series -- around siri. i do think they're well-positioned. they need to invest a little more in the living room. i hope to see that in future
apple events. emily: david kirkpatrick, you and i have talked a lot about alexa. i do want to address the shares, which are down now after the announcement. will the announcements we enough for investors? david: in my opinion, this is a buy signal not a sell signal. it's really negative for samsung. aple has never had state-of-the-art product a low price point before. that's a big deal. the world is a very big place, there are a lot of people who want apple products. to me, that's a very big deal. i would say that's positive for the stock. i don't know why people would sell on this. emily: david kirkpatrick in new york. i want get to julie hyman, who is been watching the shares. what are you seeing? julie: as you mentioned, the shares have turned lower. not a significant decline, nonetheless, pulling back as we get more headlines. this is, as i mentioned, not unusual for apple on these announcement days. excluding the introduction of the first iphone, we have seen
shares fall on average about 1% on the days they come out with these announcements. i do want to mission again, it's been a pretty good year for apple this far in 2016. if you take a look at the bloomberg, has been pretty substantial. it's little changed on the year as it has climbed, a bottomed in late january. the s&p 500 bottomed february 11. it's pretty much in a connect for the year in terms of their performance, paralleling each other more or less. they are both now up less than .5% on the year. we will see if that changes with the performance today, emily. emily: julie hyman, you're going to be watching the shares throughout the day. a very special thank you to our special guest host, bret taylor, kirkpatrick,avid the event still going on right now at apple headquarters. they are talking about the new ipad. cory johnson, editor at large is
in cupertino on the apple campus. your final thoughts. cory: i think we sum this up by saying on stood ran, apple go small, bloomberg 's big. everything is getting smaller here. they are taking their very best ipad off, they're taking their phones and offering a smaller model at a much lower price than the older models they've been selling even into this last weekend. they are taking their watch and lowering the price of them watch a significant level. i think apple is really going for unit size. they want a lot more users, they want to be selling platforms and services, not just the stuff that has defined this company for the last nearly 40 years. thinking about their software and services they want to be selling, they want to put the stuff into people's hands, on the wrist, and their homes. that's their focus. emily: cory johnson, our editor at large in apple headquarters in cupertino.
you are going to be on throughout the day, we have continuing live coverage on bloomberg television and radio. we are all about apple today. we will also have a special edition of "bloomberg west," later today. ♪ oh, hi! micky dolenz of the monkees here, getting ready to host the flower power cise. (announcer) we're taking the love generation to the high seas and reliving the '60s. we'll celebrate that unbelievable era with the music that made it so special. there'll be over 40 live performances featuring eric burdon & the animals,
micky dolenz, the monkees lead singer and cruise host, the 5th dimension, the lovin' spoonful, rare earth, spencer davis, three dog night, and many more! imagine enjoying all that great music on the fabulous celebrity summit, leaving fort lauderdale and making ports of call in jamaica and the bahamas. you'll be back in the days of bellbottoms, peace signs, and so much more, with special theme parties and 20 fun-filled celebrity interactive events. cabins are filling up fast, so come on, relive the era you remember so well. the flower power crue, february 27th, 2017. let your freak flag fly. don't miss the grooviest trip at sea. >> 2 p.m. new york, welcome to market. s. ♪
david: from bloomberg world headquarters in new york, good afternoon, i am david gura. former bank of england governor joins us, we will get his take on the state of the global economy. president obama becomes the first u.s. president to visit cuba since calvin coolidge. what the historic thought and relations means for business. latests holding its product event, and mailing an updated smallscreen iphone. they also discussed the fbi controversy. are two hours from the close of trading. let's go to julie hyman. julie: stocks not seeing much changed today. they have been seeing a little bit of strength and day has gone on a volume is down about