1
00:00:02,360 --> 00:00:05,760
Speaker 1: Global business news twenty four hours a day, f Bloomberg

2
00:00:05,800 --> 00:00:08,880
Speaker 1: dot Com, The Radio plus Mobile Act and on your radio.

3
00:00:09,160 --> 00:00:13,040
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.

4
00:00:13,200 --> 00:00:16,119
Speaker 1: US Dock Index futures are rising this morning. Let's go

5
00:00:16,160 --> 00:00:18,799
Speaker 1: to the First Word Breaking news desk for today's morning call,

6
00:00:18,920 --> 00:00:22,480
Speaker 1: and here's Bill Maloney. Good morning, Bill, Good morning Karen.

7
00:00:22,600 --> 00:00:24,960
Speaker 1: Us features have paired some of their games since the

8
00:00:25,079 --> 00:00:27,960
Speaker 1: last time we spoke. Down Futures currently hired by seventy

9
00:00:28,080 --> 00:00:30,960
Speaker 1: nine points SPS Game nine and as the futures rise

10
00:00:31,040 --> 00:00:33,879
Speaker 1: by twenty six at one point down futures were up

11
00:00:33,880 --> 00:00:36,599
Speaker 1: a hundred and forty eight points. Up of markets are

12
00:00:36,640 --> 00:00:39,440
Speaker 1: also paired their games. Germany is now training higher by

13
00:00:39,440 --> 00:00:42,040
Speaker 1: one point five percent on the US econd, I'm on

14
00:00:42,080 --> 00:00:45,279
Speaker 1: FRONTA eight thirty GDP and Core pc E and at

15
00:00:45,320 --> 00:00:49,000
Speaker 1: ten o'clock personal income and Michigan sentiment after de Bellas

16
00:00:49,080 --> 00:00:52,360
Speaker 1: Night gap year, just EPs view trailed estimates, herbal Life

17
00:00:52,360 --> 00:00:56,160
Speaker 1: set and talks with the FDC on potential resolution into it.

18
00:00:56,240 --> 00:01:00,200
Speaker 1: In Kraft Heinzby and Monster Beverage DU four revenue was low.

19
00:01:00,440 --> 00:01:04,040
Speaker 1: Estimates regarding earnings today, Rowan and South Aby's beat and

20
00:01:04,120 --> 00:01:07,400
Speaker 1: foot locker Q for Jesse EPs and comps sales, beat,

21
00:01:07,600 --> 00:01:10,200
Speaker 1: estimates and other news. Hilton to spin off its real

22
00:01:10,319 --> 00:01:13,280
Speaker 1: State and time share businesses following some of your key

23
00:01:13,319 --> 00:01:16,920
Speaker 1: wellsheet upgrades and downgrades. Monster Beverage raised by IT cl

24
00:01:17,080 --> 00:01:19,759
Speaker 1: s A Gold Corp cut the cell at Deutsche Bank,

25
00:01:20,040 --> 00:01:23,759
Speaker 1: Craft Himes raised overweight at JP, Morgan Restoration Hardware raised

26
00:01:23,760 --> 00:01:27,040
Speaker 1: a strong by IT Raymond James, and finally Colgate Palmov

27
00:01:27,200 --> 00:01:30,320
Speaker 1: cut the neutral over at sting a g Live in

28
00:01:30,360 --> 00:01:33,680
Speaker 1: the first Breaking news desk on Bill Maloney, Karen alright,

29
00:01:33,680 --> 00:01:36,360
Speaker 1: thanks villain to hear live breaking news over her Bloomberg

30
00:01:36,440 --> 00:01:39,000
Speaker 1: type squawk to go on your terminal, that's sq you

31
00:01:39,160 --> 00:01:42,000
Speaker 1: a w K go and that's a Bloomberg business flash.

32
00:01:42,080 --> 00:01:45,480
Speaker 1: Tom and Mike Karena, thanks so much. Bloomberg Surveillance brought

33
00:01:45,480 --> 00:01:50,120
Speaker 1: you by Investco. Factor based strategies can help investors focus

34
00:01:50,240 --> 00:01:54,120
Speaker 1: on high quality, low volatility, and more. Learn more at

35
00:01:54,200 --> 00:01:59,920
Speaker 1: investco dot com. Slash High Conviction. Michael McKee on air

36
00:02:00,000 --> 00:02:01,880
Speaker 1: of This Morning because she couldn't get out of bed,

37
00:02:01,960 --> 00:02:04,880
Speaker 1: she says, up most of the night partying over Chris

38
00:02:04,920 --> 00:02:08,280
Speaker 1: Ka Crieter's third period goal as the Rangers beat the St.

39
00:02:08,320 --> 00:02:11,639
Speaker 1: Louis Blues. We welcome scarlet flu, the ring, the flu.

40
00:02:12,000 --> 00:02:14,440
Speaker 1: The Rangers are doing better, right, They're doing better, but

41
00:02:14,480 --> 00:02:16,959
Speaker 1: I'd like to see more consistency. There are too many

42
00:02:17,000 --> 00:02:19,040
Speaker 1: close games, and you know, for every two games they

43
00:02:19,040 --> 00:02:22,760
Speaker 1: get ahead, there's one game where they fall fall apart completely. Yeah. Absolutely,

44
00:02:22,800 --> 00:02:25,160
Speaker 1: for those of you worldwide scarlet food joining us start

45
00:02:25,200 --> 00:02:28,520
Speaker 1: of stage and screen, uh, and really watching the Rangers

46
00:02:28,520 --> 00:02:35,280
Speaker 1: do better than good except against the outfront Washington Capitals. Christopher. Yes,

47
00:02:35,360 --> 00:02:40,000
Speaker 1: Christopher roland Is with FBR looking at Apple, Christopher, good morning,

48
00:02:40,600 --> 00:02:43,440
Speaker 1: Good morning. I I want to get through the litigation

49
00:02:43,560 --> 00:02:45,560
Speaker 1: thing quickly. It's sort of bores me because I guess

50
00:02:45,600 --> 00:02:48,760
Speaker 1: we're gonna go. We're gonna go. The major question to

51
00:02:48,800 --> 00:02:53,680
Speaker 1: me is is there any immediate analysis of what the

52
00:02:53,800 --> 00:02:57,600
Speaker 1: debate with the government would do with Apple to their revenues,

53
00:02:57,880 --> 00:03:02,560
Speaker 1: to their income, to their earnings, and to the share price. Yeah.

54
00:03:02,720 --> 00:03:07,000
Speaker 1: So there's nothing concrete that we can point to right now,

55
00:03:07,080 --> 00:03:12,040
Speaker 1: but I think the r ramifications, particularly internationally, could be

56
00:03:12,120 --> 00:03:18,560
Speaker 1: quite severe. Yeah. Sure, so if the if this they

57
00:03:19,280 --> 00:03:22,799
Speaker 1: if they decide to not vacate this court order here, Uh,

58
00:03:22,840 --> 00:03:25,120
Speaker 1: and if they go ahead and they put this back

59
00:03:25,240 --> 00:03:30,839
Speaker 1: door in, what that does it allows other international governments

60
00:03:30,960 --> 00:03:34,360
Speaker 1: to go to Apple and say, look, you've already created

61
00:03:34,440 --> 00:03:37,880
Speaker 1: this back door, now we want it. So this could

62
00:03:37,920 --> 00:03:40,800
Speaker 1: be you know, governments from Saudi Arabia, or this could

63
00:03:40,840 --> 00:03:44,400
Speaker 1: be governments from China, and of course there's information or

64
00:03:44,480 --> 00:03:49,240
Speaker 1: dissidents and in these countries. Uh. And it's incredibly, incredibly dangerous.

65
00:03:49,320 --> 00:03:52,400
Speaker 1: It's not a step that Apple would take. So they

66
00:03:52,400 --> 00:03:57,920
Speaker 1: could potentially block the sale of products unless this back

67
00:03:58,000 --> 00:04:00,400
Speaker 1: door is given to each and every from it. And

68
00:04:00,440 --> 00:04:02,640
Speaker 1: that's not a step that Apple would be willing to take.

69
00:04:02,760 --> 00:04:06,280
Speaker 1: So Tim Cooke's posturing is more because of what it

70
00:04:06,320 --> 00:04:10,040
Speaker 1: represents to other foreign governments other for markets. I think

71
00:04:10,080 --> 00:04:13,600
Speaker 1: this is one sort of knock on effect that I

72
00:04:13,640 --> 00:04:18,200
Speaker 1: think is most financially detrimental um as opposed to just

73
00:04:18,279 --> 00:04:21,880
Speaker 1: a privacy act. Yes, within the financials in the time

74
00:04:21,880 --> 00:04:23,240
Speaker 1: that we've got left to you, and we'll have you

75
00:04:23,279 --> 00:04:25,480
Speaker 1: on for a longer about here in a bit with

76
00:04:25,640 --> 00:04:28,880
Speaker 1: the new earnings report, do you just presume that there

77
00:04:28,920 --> 00:04:32,240
Speaker 1: will be the ginormous mother of all share by that

78
00:04:32,560 --> 00:04:38,440
Speaker 1: dividend increase announcements? Uh, It's it's not clear yet. It

79
00:04:38,520 --> 00:04:42,640
Speaker 1: really is not clear yet. Apple's having, uh, some some

80
00:04:42,760 --> 00:04:46,280
Speaker 1: challenges in terms of growth. I think that that that

81
00:04:46,320 --> 00:04:49,760
Speaker 1: there maybe now more than ever, they want to keep

82
00:04:49,800 --> 00:04:52,800
Speaker 1: a little bit of dry powder here to perhaps to

83
00:04:52,920 --> 00:04:57,279
Speaker 1: move into other markets. So, um, so it's not clear

84
00:04:57,320 --> 00:05:01,120
Speaker 1: exactly what they're going. Does that mean by Twitter? I

85
00:05:01,240 --> 00:05:04,400
Speaker 1: don't think Twitter would be uh the number one goal

86
00:05:04,480 --> 00:05:09,120
Speaker 1: for them. Now, you know, there is some discussion about

87
00:05:09,279 --> 00:05:12,960
Speaker 1: something to do in autos, Uh, that could be a

88
00:05:12,960 --> 00:05:17,200
Speaker 1: potential area of focus for them. Um, you know, moving

89
00:05:17,200 --> 00:05:21,160
Speaker 1: beyond just consumer electronics, so you're talking more about services

90
00:05:21,400 --> 00:05:24,239
Speaker 1: and that recurring revenue aspect which has kind of alluded

91
00:05:24,279 --> 00:05:29,120
Speaker 1: them and has contributed to the discount on their evaluation. Absolutely. Yeah.

92
00:05:29,640 --> 00:05:32,479
Speaker 1: So this being the case, Tim Cook is fighting this

93
00:05:32,560 --> 00:05:36,320
Speaker 1: PR war. On the one hand, what is his operational

94
00:05:36,400 --> 00:05:38,680
Speaker 1: staff most obsessed with right now? What are they working

95
00:05:38,720 --> 00:05:40,839
Speaker 1: on that they must get done by the end of

96
00:05:40,839 --> 00:05:44,920
Speaker 1: the year. Yeah. So, um, you know, the real problem

97
00:05:44,920 --> 00:05:48,560
Speaker 1: that Apple's running into right now is declining iPhone numbers

98
00:05:48,920 --> 00:05:53,280
Speaker 1: because the replacement right or or or or time, the

99
00:05:53,279 --> 00:05:55,359
Speaker 1: cycle that it takes for a consumer to buy a

100
00:05:55,440 --> 00:05:58,920
Speaker 1: phone is increasing, and in North America, We've gone from

101
00:05:58,920 --> 00:06:01,479
Speaker 1: a little over two years to two and a half

102
00:06:01,520 --> 00:06:05,840
Speaker 1: and approaching three years, and this is really really hurting

103
00:06:05,880 --> 00:06:09,080
Speaker 1: their growth rate. What they need to do is create

104
00:06:09,200 --> 00:06:13,640
Speaker 1: a significant amount of innovation in the iPhone seven that

105
00:06:13,680 --> 00:06:19,400
Speaker 1: will make this extending cycle actually contract. When that happens,

106
00:06:19,400 --> 00:06:21,520
Speaker 1: you'll get growth again. And Tom, there's a lot of

107
00:06:21,520 --> 00:06:24,240
Speaker 1: talk that Apple in March typically releases new products and

108
00:06:24,240 --> 00:06:27,160
Speaker 1: there's supposed to be some mid sized iPad. I guess

109
00:06:27,160 --> 00:06:28,960
Speaker 1: that means bigger than the mini iPad, smaller than the

110
00:06:28,960 --> 00:06:33,479
Speaker 1: regular iPad. Uh, there's there is a iPad three coming.

111
00:06:33,600 --> 00:06:38,440
Speaker 1: There's also Uh, there's also a smaller iPhone as well.

112
00:06:38,480 --> 00:06:42,440
Speaker 1: Within the quickly here within the chat, do you see

113
00:06:42,480 --> 00:06:50,240
Speaker 1: the new phone providing the unit growth necessary? That question

114
00:06:50,560 --> 00:06:54,479
Speaker 1: is still to be answered, and the the the answer.

115
00:06:54,640 --> 00:06:58,120
Speaker 1: The answer lies in the level of innovation and the

116
00:06:58,160 --> 00:07:00,880
Speaker 1: new features that are coming, and we only know of

117
00:07:00,880 --> 00:07:03,039
Speaker 1: a few of them thus far. I agree there's a

118
00:07:03,080 --> 00:07:05,839
Speaker 1: mystery to it, and this of course is UH. Most

119
00:07:05,920 --> 00:07:10,200
Speaker 1: shops maintain huge optimism FBR with an that perform and

120
00:07:10,280 --> 00:07:14,120
Speaker 1: a hundred price target on Apple. Christopher rolling with us.

121
00:07:14,120 --> 00:07:16,560
Speaker 1: We'll have him back for a more extended discussion here.

122
00:07:16,960 --> 00:07:20,480
Speaker 1: Somehow I think we'll be doing this. Scarlet I got

123
00:07:20,480 --> 00:07:24,720
Speaker 1: a film, a photo from a family member. Fancy new

124
00:07:24,760 --> 00:07:29,080
Speaker 1: phone that was shocking. How much better? Better than anything?

125
00:07:29,480 --> 00:07:33,880
Speaker 1: Oh that's unreal, unreally like carbriage. Scarlet food with us.

126
00:07:35,440 --> 00:07:38,560
Speaker 1: This is spl survey. I can't even talk. I'm so

127
00:07:39,160 --> 00:07:42,000
Speaker 1: that's what happened. Scarlet Food is here, stay with us,

128
00:07:45,760 --> 00:07:48,240
Speaker 1: coming up on the With all due respect, Highlight brought

129
00:07:48,240 --> 00:07:50,000
Speaker 1: to you by land Rover. If it's in your nature

130
00:07:50,000 --> 00:07:52,040
Speaker 1: to cast off the every day and seek adventure, the

131
00:07:52,080 --> 00:07:55,000
Speaker 1: Discovery Sport was built to help your search. Visit land

132
00:07:55,040 --> 00:07:57,640
Speaker 1: Rover Trica dot com for special offers during the only

133
00:07:57,720 --> 00:07:59,800
Speaker 1: Adventure Sales event land Rover Above and Beyond