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tv   Bloomberg Technology  Bloomberg  May 4, 2018 11:00pm-12:00am EDT

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>> i'm mark crumpton in new york. you are watching "bloomberg technology." here's a check of first word news. president trump addressed the nra convention in dallas. hisold the convention that administration will always fight for the right to bear arms. >> your second amendment rights are under siege, but they will siege aser be under long as i'm your president. >> rudy giuliani says payments to president trump's personal attorney were not a campaign violation. he put out a statement today to clarify comments he made which suggested a disconnect with the white house. he also said mr. trump has the authority to fire former fbi
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director james comey. judge today asked pointed questions about special counsel robert mueller's authority to bring charges against trump campaign chairman paul manafort, and suggested that prosecutor's true motives are to get men for two "saying" against the president. another appointee is leaving the epa, deputy associate thenistrator john caucus, fourth two announced a part of plans under the administrator .cott pruitt, global news, 24 hours a day, powered by over 2700 journalists and analysts in more than 120 countries. i'm mark crumpton in new york. "bloomberg technology" is next. ♪ emily: this is "bloomberg technology".
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apple shares hit a record after warren buffett makes another egg -- another big bet on the stock. amazon lost out to walmart, giving them an e-commerce edge in southeast asia. and the u.s. trade delegation heads home after two days of talks. what it means for the tech industry and asia going forward. but first to believe. shares of apple hitting a new all-time high pushing the tech giant to striking distance of a $1 trillion valuation. warren buffett told cnbc he bought an additional 75 million shares of the iphone maker in the first quarter, expanding his already large investment in the company. for more on apple and perspective on the sector, let's bring in kevin kelly.
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i will start with you -- a big vote of confidence from buffett. what is your read? >> going through a white knuckle period over the last two weeks, you have the buybacks, and now you really get into june september quarters, a massive product cycle on the horizon. this could be the yellow brick road to a true billion dollar market cap, and i think ?nvestors are starting >> that said, the smartphone market is saturated. will apple continued to defy the odds, and if so, how far away is it from that $1 trillion mark? >> what is important is for u.s. tech in general, can you sustain this type of growth? for a long time, tech was one of
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the primary sectors you would go to if you are looking for the earnings growth moving forward. seen is ine shareholder friendly activity out of apple, something we have talked about in terms of a broad market buyback. alibaba shares jumped on the back of earnings, they have been unapologetic about ramping up investments in say that will continue. what do you make of that? in super growth mode, you saw them with that 60% growth, investing on the cloud, and this is a land grab opportunity. they are in a massive position of strength in that is why investors are cheering this strategy, this is another vote of confidence for the overall e-commerce market.
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amazon, alibaba and now francine: the two horse race depending on the geographic way you look at it. it will continue to expand to other areas and that is why investment is a smart strategy at this >> what does this say point. about the u.s. tech market which just a few weeks ago, their analysts saying a tech bubble had burst and a lot have been recovered just the last few weeks? >> when you look at the argument, one of the big things we have been noting is the rate of growth. if you look at china tech, it is projected to grow twice as fast over the next 12 months and when you look at the valuations, they are higher. that is what you expect and at the same time, they are pretty much in line -- these violations
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are in line with what effect over the last 10 years. from a valuation perspective don't look too stretched. >> apple is heavily weighted here. what role does apple play in the overall sentiment of the tech sector? >> this was a game changing week. what comes out is the iphone x is not dead are at it as one of the best-selling phones out there and they're going through a massive product cycle. it is a huge boost for the market. but at facebook. you have apple. netflix, google. this is one where i think the
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tech earnings are really going to put more gasoline over the coming weeks and months. i think this is something that is setting up with apple on its race to hit the trillion dollar market cap before the september timeframe. >> we will be talking about a potential trade war where china later in the show which i talked happening. kevin, how could some of these issues impact me china versus u.s. tech sector? >> as you mentioned, large exposure to china. trade talks will be very important, but i will say they might affect analyst expectations. they have not really revise
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their expectations until recently. that is going to be important because obvious companies want to become victims? can you sustain that where is the expectations for next year follow about 10%? >> obviously, we saw shares recover today. he also today tweeted the two questioners i ignored represent a short seller thesis. what you make of his behavior and how to interpret it? >> probably one of the strangest calls, but that is part of musk.
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this was not the way to handle it and the way that stocks reacted, can they narrowed that? this is a situation will he -- where he has to be a little more street 70 four handle calls better. patience is wearing thin. i deftly don't think this was a call that would go in the investor relations hall of fame. >> looking forward to the next few weeks, what do you want to watch for? season,nd of earnings
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tech stocks are on pace for great growth, 20% in the first quarter versus expectations. what will be interesting is we really -- there has been a lot of talk about the market in this week the index has since moved higher. --will be interesting to see we will be watching this attack can keep up that momentum, especially relative to the broader index. >> what do have your eye on? >> i'm seeing a big focus year. it is background noise now but that is something that can really fester in terms of how it would impact. what we are really looking for here is the earnings acceleration into the rest of the year. it isk fundamentally
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really cloud, cybersecurity. that is something that we will see continuing to play out over the coming months, and you really have a consumer and enterprise the that are both playing out and it is a secular growth market. but there are obviously the haves and have-nots. that is why we are focused elsewhere in social media to look at facebook, twitter, snap, see the share gains, and do advertisers continue to stick with facebook. we believe that damages contained -- so far they have navigated the storm well. >> bloomberg broke a story today that facebook is researching an ad free subscription model. what is your take? >> they have to give these research it in terms of that cambridge analytic a scandal. >> but how many would pay for
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it? >> it is negligible, and it would go against the model. this is something where they research a lot of things that never come to market. i view this is one where our not pay too much attention to that because i do not see that. i think if they went to a paid model, it would go against the dna of zuckerberg and facebook. >> thank you both. lots to watch. coming up, for car has agreed 75% of the company to walmart. if you like bloomberg news, check us out on the radio. this is bloomberg. >> a self driving waymo vehicle ♪
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now to a developing story. a self driving waymo vehicle was traveling at slow speeds and a thomas modes. authorities say it was a minor injury. we will continue to monitor this as we get them. the way has been cleared for walmart to make a huge bets on
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international expansion. in india, they agreed to sell 75% of the e-commerce company to walmart for approximately $15 billion. amazon also made a bid for flip cart. joining us now, the senior executive editor in new york. what do you make of the fact that walmart got this and not amazon? >> amazon had always been a long shot. it is the number one online retailer in india, a massive growing market with a population of 1.3 billion people, but amazon is a close number two. the idea that amazon would make this investment was probably never get a pass regulatory muster. in with art comes ofong investment, and part it is international expansion and the shift in the retailer's migration of its international
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footprint from the west to india and china. >> amazon obviously has india ambitions. how do you compare walmart international footprint to amazon? >> it is getting smaller. they sold their interests to j sainsbury taking a 42% stake in the company. they have a great business in canada. they are selling their brazilian operation. i think the ambitions for both these companies, they start in china where they got a late start and alibaba has conquered the landscape there and they are applying the lessons and bruises they experienced.
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>> softbank holds a stake in flip car. what happened to that? >> my understanding from the great reporting from my colleague is softbank, which doesn't like to be a passive investor, is selling their stake. i believe a $20 billion value is a profit. >> we touched on this earlier, but facebook -- bloomberg broke the news today -- is researching an ad free subscription model. talk to us more about what we know. is this a story or moving to a realistic initiative? >> there have been rumors for a long time that facebook would do that. i think the company itself was
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always quite resistant to the idea of charging for facebook. sheryl sandberg believes relevant aspect the service better. i think they have taken such punishment over the last few months or at targeting in the elected privacy violations that reporting has suggested there is support for a subscription service that suspends advertising and partly a function of where internet is taking. i hear at bloomberg, we introduced a pay wall this week. subscription models are in. >> in his testimony, mark zuckerberg said they will always be a version of facebook that is free, which leaves the question is is there a version that will not be free?
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we heard an analyst earlier saying, if anyone is willing to pay for it, it would be a tiny group of people. is this something facebook could offer as an olive branch? like if you want to pay for it, we have an option? >> i think that is right. one of the elements of advertising on facebook is it is not in your face and so i think the proposition to ask people to pay to get rid of ads is a tough one. we are so accustomed that not paying for facebook, it is probably going to be challenging. i think you raise a good point to say that if there are users that want to turn off all advertising and targeting, you are giving them an option to go do that. >> bloomberg text brownstone in new york.
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thank you for stopping by. coming up, weight watchers has seen a lot of success to its at and digital strategy. we will hear from the ceo next. bloomberg technology is live streaming on twitter. check us out on technology weekdays. this is bloomberg. ♪
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>> weight watchers stock has jumped nearly 60% thanks to a partnership with oprah winfrey. but the tech industry has been encroaching on the weight loss business. the ceo joined us to talk about the company's digital strategy. >> every month, we sink with millions of devices. we have 1.7 million people monthly who are in our community
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platform and that if i our engagement is so significant. some of my favorite staff, 2.5 million user use the barcode scanner and 260 million food track. that is 260 million opportunities for engagement. we are not just a program. the community aspect is so powerful which is why we are investing in all the assets to make that journey even as and using the data and the ai. that becomes the first thing they look at in the morning and before they go to bed. jump as ittend expanded its footprint in wealth
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management, consumer lending, and overseas market. the firm disclosed its financial that is expected to see the public financial offering. the cbs viacom merger could be getting closer. this after reuters reports that sherry redstone is willing to make concessions of the deal. redstone had offered to drop the demand that viacom should become the second in command as long as jesus all the board. and coming up, trade talks break down. we look at what went wrong and what went right. this is bloomberg. ♪ mom, dad, can we talk?
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>> i'm mark crumpton in new york. here is your first word news. as they left the white house en route to the inner a convention in dallas, president trump said he didn't trust the motives behind special counsel robert mueller's request for an interview. have defined we will be treated fairly because everybody sees it now and it is a pure witchhunt. why don't we have republicans looking also? why are we having republican people doing what all of these democrats are doing? it is very unfair. if i thought it was fair i would override my lawyers. mark: the president's lawyers say they have concerns during extended questioning that robert mueller makeup president and
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committing perjury. international mediators gathered in france to and the end of a decades long campaign against spain that killed more than 850 people. mass civilians also participated and among those in attendance was gerry adams. >> the steps taken in recent days and years and the process are examples of what is possible when people of goodwill and the ordination and ambition but lose hope and don't give up. mark: minister is promising to continue prosecuting militants. russia says international chemical weapons inspectors have finished the investigation in the syrian town that was the sight of a suspected chemical attack last month. the organization for the prohibition of chemical weapons is expected to issue a report. protesters used a slingshot to
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bring down an israeli drone in gaza today as demonstrations near the border with israel entered week number six. thousands of palestinians swarmed the area with some burning tires and throwing stones at israeli soldiers as they fight like bullets and fired tear gas. results from local elections in the u.k. showed opposition they were giving ground in some areas but the party is mabel the been conservative strongholds in key parts of london. hawaiian officials say extremely high levels of sulfur just happened that in areas near the corruption of a volcano. nearly 1500 residents were ordered to evacuate after the volcano begin spewing molten lava. global news, 24 hours a day, on the air, and at tictoc on twitter. powered by more than 2,700 journalists and analysts in more than 120 countries. "bloomberg technology" is next.
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♪ ♪ emily: this is "bloomberg technology". levels of trade talks but an agreement to. keep on talking, and little else the u.s. delegation led by steve mnuchin departed beijing amidst reports both sides reached a consensus on some issues while acknowledging major disagreements on others. that sparked a white for i.t. off takes from bloomberg television guest on friday. >> the demand is quite high. >> it is a difficult task. >> does trump what some
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tweetable win? >> the conversations .2 and abrasive agenda -- conversations lead to an abrasive agenda. >> we could get a positive outcome if you can get a few small wins in return. i would expect this would be more negative in the next two months. emily: joining me to discuss further is isaac stone fish, and sarah mcgregor with its u.s. economic coverage. let's start at the beginning, where did they make some agreement? sarah: the only agreement we know about now, and we haven't had official briefings are press taylor specifically. the parties agreed that will continue dialogue. that is what we know right now. what was exposed from these
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meetings is how gaping and yachting differences are with what the u.s. sees as needed to change the relationship with china wants. the disposition by the u.s. is going to go over demand and. have these talks and see what it could get from china what became clear is china also has request that it wants from the u.s. and visited the relationship is perfect either. we are presented with a long list of demands. trump is single-minded on the idea of reducing the trade deficit and that was the top line request from the u.s. emily: there is a yachting difference going on for many years now. which of these demands are resembled and unreasonable on both sides? isaac: it is reasonable for the united states to want china to be less protectionist economy and to want china to stop with the state-sponsored hacking of commercial secrets. a lot of differences stem from
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the idea that many in china have that their country is still a developing nation and deserves to be more protectionist in a developed nation. the idea a lot of people in america have is that china is the world's second-largest economy and greatly comforted in a lot of areas of global trade and economics and deserves to be treated as such. emily: obviously to have said that are going to continue talking. is it realistic to think they are going to find a more common ground with the trump and administration? sarah: bloomberg got a hold of the list of demands and how big they were -- because we didn't know what the objective was going over there, it was in public announced previous to the
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delegation leaving. we didn't know if they come back with business deals and say, the deal is done and everything is back on track. i think given the very extreme hard-line demands, are going to see what could be a protected and tough negotiation. if nafta is a guy, some analysts have said u.s. has make hartline demands on nafta and are softening, and as it stands right now coming to this anything to exacerbate tensions than cool them. emily: talk about tech companies in particular, talk about apple because the parts are manufactured in china. doesn't have chinese companies concerned about selling their products in the united states. isaac: i do think there is a way to spin what happened as good for tech companies in the u.s. or in china. especially american tech companies in china will face real concerns about privacy and the sanctity of their information and the need to censor and be in the chinese market. these trade tensions increased suspicion on the chinese sentiment in record companies
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are going to make it more difficult for american tech companies to find a good foothold in china. emily: history doesn't always rebuke itself, as we have seen with north korea -- history doesn't always repeat it self as we have seen with north korea. have realistic is it the think they ever will? isaac: if there is a way for the rest position in a way that it is not china giving and to some of these demands by a compromise that beijing is able to sell domestically. this idea of reducing the trade
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deficit, if it is packaged on both the american and chinese site as a way for beijing to move its economy away from one relying on exports and towards the light on domestic consumption, which economists is a great way for china to go as well, and many chinese reformers in the party did so as well. it will be importantly for that to happen to lower the trade deficit then if china yields to the u.s.. the other thing is a packages together other national security desires and is willing to yield on some of those in exchange for trade, than beijing might decide to yield. emily: in what context will talks continue and what is next? sarah: to delegation led by steven mnuchin might still be in the air, where not 100% sure if they have landed yet or not, that they are going to give trump a briefing at the white house said today that trump will take decisions from their. expect to get more of a we got from the administration, and it is quite third that the trump campaign promises of crating jobs and growing the economy, part of that is manufacturing, but that is a old-fashioned view
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and i think the u.s. sees itself very much in a race with china on the tech side. this is an issue that isn't going to go away or be sought in the next day or two. i am interesting in how this plays out and what company reactions are in silicon valley, and what happens on the ground for them and businesses that do have a relationship on the chinese market. emily: sarah mcgregor and isaac stone of the asia society, thank you both. global is taking a step to increase transparency across political apps, and google will require revocation for anyone who wants to buy ads in confirmation the buyer is a u.s. citizen or awful permanent resident. the company said ads must that disclosures and release a transpersonal report focused on election at this summer and a searchable library of google-based election ads. coming up, we speak to the ceo of carbon black on their public debut.
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and on the we can bring you our best interviews from the weekend, including highlights from our conversations at the milken conference in a late in their conversation with microsoft chair. to then this sunday for the best of bloomberg technology. this is bloomberg. ♪
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emily: the nasdaq welcome a new member and shares rose 20% above the $19 ipo price and bloomberg is reporter alex barinka caught up with patrick morley to get his thoughts on their debut. patrick: carbon black is a cybersecurity leader and where to something a pick market right now, a $19 billion market. what we're focused on is miggy sure we get our company name and bent out there. will be spending some of those dollars on sales and marketing and beneath the company out the international markets as well. >> cybersecurity is a big space. you are a cloud-based company. break what exactly do you do for your customer? patrick: think of carbon black as a company that helps organizations protect devices. laptops, servers, data centers. we help them.
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the fundamental belief is that we have data, the company to collect the richest set of data and analyze that data is best positioned to be able to help companies see and stop hackers across the globe. alix: when you think about the customer you are selling into, what comes to mind for your organization, was employees use laptops, tablets, work from home? are their and their devices you see your customers using these days that is opportunity for you to help them protect as they tried to keep all of their private data private? patrick: carbon black protects any device that runs a workload of some type. as the world changes and workers are mobile and network security cannot protect everyone, we're working from home some coffee shops and increasingly seeing
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new types of devices that are ip connected to the internet. the way up to protect those devices is fundamentally different. in addition to what you think as an endpoint device, we protect many nonstandard devices from control systems that run utilities, power plants, oil rigs, pipelines, point-of-sale systems, and a lot of nontraditional devices that fit and transportation services like trains. that many devices out there across the globe. and helping organizations protect themselves from hackers. alix: it seems these days that bad actors are getting more clever, hence the need for products like years. you have a threat analysis unit, are they new things on the mind of the chief security officers that they are trying to block
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and tackle? patrick: the big change we have seen in the last three or four years is leveraging its software to actually drive the attacks. most of us in the general public think about the attacks as a virus. the attacks used software that is good, so the approach of trying to identify software as a virus or bank doesn't work anymore. carbon black brings a unique approach to helping protect those organizations. our core premise is that it is all about the data, and carbon blacks ability to collect the richest set of data in the
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marketplace allows us to see and stop hackers, whether or not they are using viruses or using that software to run pack. alix: one of the popular trump's i hear in the tech world is a small security company cannot be standalone. obviously as the ceo of a smaller company, competitors like symantec and cisco, you disagree with that, what is your argument for being a standalone company and not high up with partners like vmware or ibm? patrick: carbon black has a unique approach of how the district the marketplace and we partner with some great companies out there. that is part of our strategy, to with great anderson the marketplace. we are building a large standalone cybersecurity company and have over 900 employees globally. 3700 companies out there that depend on us and trust on us and who we work for every snow day to ensure safety. given the opportunity where
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after, we can build a very large company on our own. alix: where is the growth court to come from first? new customers are pushing further? patrick: it is both. acquiring new customers both domestically and canada and increasingly the international market is a big focus for carbon black. we also have the opportunity to offer them more services on top of the data we collect, going back to our customers and selling them more services to help keep them safe. emily: dose carbon black ceo patrick morley speaking to alex barinka. disney and marvels blockbuster adventures infinity ward is on track to become the fastest from across the billion dollar mark in the box office and finishsh thursday with a worldwide total of $95 million, including 308 million dollars in north america is expected to hit the milestone this week. when it does, it beats out star wars, another disney production, for the top spot.
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coming up, apple shares an all-time high text to warren buffett and white the investor up his investment in the iphone maker. next. this is bloomberg. ♪
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emily: and apple executive will be? welcome lawyers over plains of dollars of patents and listen fees, not friday a federal judge ordered him to be deposed granting qualcomm request and turning on apple's arguments against the move. the heart of this enough is how much welcome can charge for makers these its patents. apple cut off qualcomm images the chipmaker of trying to monopolize the industry. apple shares hit a record of the
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warren buffett puts msnbc you bought additional shares of the iphone maker in the first order. the purchase cost between $11 billion and $14 billion and that's to the almost when in 70 million shares berkshire hathaway owns at the end of 2017. apple was already buffets biggest shareholder at the time. joined us with marcus mark gurman who covers all things apple. your take? mark: a vote of confidence from what the world's most renowned investors with his past dealings with berkshire hathaway. the buffet name is a strong name and when you hear buffett is investing in something and that's confidence from other investors and that is why had at a significant impact on the market. emily: but it is a make the best decisions come if you look at ibm, which he subsequently sold off. we think apple can continue to defy the odds the smartphone
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market? mark: the smartphone market is not only slowing but contracting. i don't think apple will see a decline in smartphone sales. consumers will always have a device they will carry with them. i think the shape and form will change over time and rethink that is the apple watch, that so far that hasn't been a runaway hit like the iphone is that selling an iphone like quantities and doesn't have to yet. at the point the smartphone market windows and stop scoring to will have to be something to add the apples growth. across apple's history to have had a big growth product. emily: they are on track for the trillion dollar market cap, how long until they get there? mark: after this presently positive earnings results on tuesday, a lot of people think is going to happen sooner than later in the latest estimate i've seen is time this year,
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probably by the fall. but that changes rapidly and if you look at the ticker, you can see the market cap can shift from the height 800s to the loan and hundreds. emily: what is your take on his case against qualcomm? mark: apple is saying there is no reason all companies to depose their senior executive in charge of cloud services. he was a close confidant of steve jobs and now tim cook, and envision what was people don't know and running apple music, he is apple's chief negotiator and he has been roped into a very important deal over apple's history, and one of them is the iphone deal with siegler at the time and no at&t, negotiating the exclusive at the agreement i can to seven when the first iphone launched. for that reason, qualcomm once in to be deposed. emily: that is going way back. mark: he has been there for a well and being that the negotiator on these carrier deals involves qualcomm as
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qualcomm makes the chips perform networks. emily: mark gurman, and do for weighing in. that does it for bloomberg technology, coming up next week, uber is hosting a business of equality summit will bring together business, academic, and political leaders and activists to talk about the future of equality and how we get there and what is at stake for the economy and society at large. catch all the conversations all day long on bloomberg television and radio. it reminded we likes twitter, check us out weekdays. that is all for now. have a wonderful weekend. this is bloomberg. ♪
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