>> welcome to "lunch money." i am adam johnson. the world's richest man, bill gates, he has committed his wealth and his life to solving the world's biggest problems. the billionaire founder and chairman of microsoft together with his wife has tackled extreme poverty and poor health in developing countries to the failure of america's education system. today bill gates joins michael bloomberg, majority owner of bloomberg lp for a conversation with betty liu. we are going to bring you the best of that interview which took place just after the and melinda released their annual letter, predicting no poor

nations by the year 2035. >> i think it is dangerous people are focusing on the bad news and not seeing the progress we have made. it means the don't look at the best practices. they make them less generous. we are raising poor countries up. there is more to be done on health and agriculture. the track record of success, if you don't see that you are not going to participate in what we need to do. >> you say there will be no poor nations by the time we reach 2035? >> almost none. landlocked countries in africa, north korea, it will be less than 10. we are down to about a quarter of them. if we focus on them we can make

it really exceptional. >> bill and melinda gates try to debunk three myths. one, poor countries are doomed to stay poor, two, foreign aid is a waste, and three, saving lives leads to overpopulation. he responded to myth number two that foreign aid does not help. >> people are sleeping without a roof over their head. fewer people are illiterate. life expectancy is generally longer. by any measure things are better. that does not mean every place or every person and there'll always be a bottom 20%. we will always redefine what the bottom 20% means. up to say that with foreign aid and all the money -- for example, through the bill and melinda gates foundation --

>> a big part of point he got myths is busting them. betty asked bill gates how he plans to change that perspective. >> we want to spread the word. headlines are what mislead you. bad news is a headline and gradual improvement is not. when do we celebrate a reduction of malaria deaths? when did we celebrate gdp growth? we all must have to speak out and say despite how bad we feel about what is not yet done, we have some approaches where cynicism is holding us back. people think of corruption and think about the big part of the budget.

if you ask people, they will say 25% or certainly above 10%. >> one of the myths about foreign aid is that so much aid goes to governments in africa. they waste that aid. they give corrupt regimes a pass to not doing the things they need to do. what you say to that? >> historically during the cold where there was a lot of money that was friendship money to make sure that that guy was our bad guy versus the soviet bad guy. nobody expected that human lives with them prove dramatically. now we do not have that agenda. now we can go and say, what will this do for nutrition? what will this do for kids to fully develop physically and mentally and help these countries be self-sufficient? so many are focusing on the

tough cases. with the right vaccines and the right seeds and philanthropists coming in with their businesslike mentality like mike and i have, i think every year we are going to be smarter about how we do it. >> we also have bigs that have big problems. solving them does not mean getting 100% of them. if we brought smoking down in a good part of this world to medically, that will save an enormous number of lives. having said that, there are also places where the smoking industry has managed to get poor people who do not know that it is bad for their health to increase the rate of smoking. making progress? yes. should you be disappointed? no. smoking will kill one billion people the century. we made progress and you have to admit that. if you are not willing to acknowledge what works, you're not going to be able to know how to help others. >> have you been surprised at the turnaround in the public

view on issues like smoking? on issues like obesity, for instance? and even now, the legalization of marijuana and how rapidly people's perceptions have changed. >> we still have a long ways to go. if you take a look at these companies, the tobacco companies target those that do not have the information, do not have the infrastructure. the industry can give them advice as to how to improve their lives and extend their lives. so much of the tragedy in this world is self-inflicted. there are wars, there is genocide, there is starvation and people getting shot all the time. most people died before they should because of their own behavior. that is what we have to work on, educating them and giving them the tools, explaining and counteracting the special interests who make money by selling products to them or getting them to do things that are dangerous.

federal government and state government tends to move money around. cities are where you pick up the garbage, were you educated kids, were you bring down crime, where you enact health measures that you can actually see. where you can buy it, how it is labeled, how you can use it. it has all been done at the city level. those are not done at the federal or state level. there really done at the city level. >> i have always wants to know this from you, you have such a huge arsenal. both of you have a huge arsenal of resources. how do you pick the causes you get behind? >> i think the greatest inequity is how poor children don't get to grow up and achieve their potential. either they die or they sadly do

not have enough food that their brain develops. we have decided that most of the money is going to go to that cause. unfortunately there are things like vaccines that will help them, avoid them getting six and we are seeing products -- and we're seeing progress. because it is this injustice, because these things were not being done at the level they should be, once you pick an area you develop expertise to my you go out and see the people. that is going to be our lifeline. >> did someone trigger you to think about this area? >> i think he listens to his wife. melinda has a lot of good ideas. we have been doing a lot of

things under her guidance trying to advance the causes of getting the kids so they can get going. there are lots of good ideas. you cannot do everything. you have to decide what your core competencies are, what do you want to do it internally. in a lot of cases their foundation administers funds and in other cases they give funds. in our case there will be more donating of funds. if we are working with them on a lot of public-health issues. >> when you were mayor, you had certain metrics by which you can measure the success of your own projects and initiatives. when you give money, how do you measure success? >> not everything is going to work quickly so you have to have some patience. number two, if you do something in the scientific world and it turns out to be a failure, that in some senses a success because you don't have to go down that path again.

unfortunately in the world i came from you are labeled a failure. that is not the case in the way science works. there are a lot of people around who are trying to apply metrics. in some cases you can and in some cases you just have to do it on faith. i have no doubt this'll help and i am willing to make that bet. if it doesn't work, don't be stubborn but don't walk away from it too quickly. >> how about you, bill? >> each project with a commitment like our smoking groups come a day come in and talk about how we are going to get the prevalence down. it is going very very well. we back a lot of different scientists. if one approach fails for an important problem we have a portfolio type approach.

the farming productivity has doubled -- that gives you a blitz to keep trying. you can go out to the country and meet the people who are growing more rice than they ever did before. >> we are going to have more power exclusive interview with bill gates and mike bloomberg. hear about how they choose where to donate. ♪

>> welcome back to "lunch money." we have been bringing you the exclusive conversation with bill gates and mike bloomberg. mr. bloomberg, founder and majority owner of bloomberg lp, a parent of bloomberg news, is heading to africa. betty asks bill gates if he has any advice for mr. bloomberg. >> mike has been super generous on malaria research. i hope you will feel good going

in and seeing that the death rate is down, seeing -- we have been talking to the people on the ground for which tools to deliver. africa is fantastic. the city sees that city needs a lot of help. that is why both of us are drawing more of our philanthropy to help those countries that have great means. >> one of the places melinda is has 50,000 people per doctor. we have 500 people per doctor. if you need an emergency operation, you just die. we have been training people to do appendectomy's, which turns out to be relatively simple operations. you are not going to cure everything, you are not going to be able to do open heart surgery but you are going to do things that can be enormous. >> what do you hope to do or see their?

>> the organization i am participating in is a group of sharing best practices. they all have the same problems. the all have to educate and protect and improve the health of people. all through africa and latin america and asia and europe and america -- we all have very similar problems. some of them are different in magnitude. you don't have to go very far from right where we are sitting, just go to haiti and look at the terrible tragedy that has taken place there. the world pledged all this money and yet it is still there with diseases that i felt were eradicated -- that i thought were eradicated. there living in tents and not having the ability to be in charge of their own destiny. >> many people watching this interview are big admirers of your work. i am curious to know who you admire.

are there leaders you look up to? >> well, we learn from each other. we are both early members of the group giving pledge. george soros has done innovative work. of most amazing are the people out in the field, who spend big parts of their life in africa, taking these tools we send back and make sure they get out there. >> you have to separate people's political interest from their willingness to help. george soros is clearly a liberal in some ways. the koch brothers are very conservative. but they help out hospitals. you don't have to agree with everything. i think they all deserve credit. there are an awful lot of people.

there are people who aren't even millionaires and right small checks and give their time and go out there and work and lobby their of elected officials to take government money and try to improve the health of everybody. they deserve and enormous amount of credit as well. >> that maybe feeds into what you are talking about with the misperceptions. people feel like their lives have not been improved. the average american does not feel like their life has been improved. how can the care about the problems you are talking about? >> the question is are you willing to spend a little less than one percent on saving lives for a few thousand dollars per life? the european governments tend to be twice as generous on these issues as the united states is. the voters are not going to be willing.

recently in the budget compromise, polio got an extra 50 million per year. progress has been made >> it is very self-serving. do you cure diseases elsewhere where you are not likely to catch the disease? we live in a world where diseases can spread very easily. if we want stability around the world it is self-serving because our safety depends on a world that gets along. there is a compassionate part of this. you come back to right where we started with this interview. things are better. we can make a difference. you are not going to cure everything overnight or even ever. but to sit back and say it is hopeless, that is not true.

one of the things bill points out, the better educated people do not overpopulate the world. a lot of poor people have lots of kids because they think they will not survive and there's not going to be a breadwinner down the road to take care of them. it leads to a much more rational world and and let's us deal with real-world problems. >> we will have more of our exclusive interview with bill gates and mike bloomberg, including the chairman's take on funding a new ceo for microsoft. we will be right back. ♪ >> we have been bringing you

our exclusive interview with bill gates and mike bloomberg. the conversation is mostly about their fight against global poverty.

it is not often you get to ask the chairman and cofounder of microsoft what he thinks about the company and the search for a new ceo. we asked him what he thinks and he is still staying involved. >> i am on the board. the board is doing some important work right now. the foundation is the biggest part of my time. i put part-time work into help as a board member. >> how involved are you? >> there is nothing new to say. it is a good board. >> do you feel a sense of urgency at all? >> i always feel that way. you always want to pick the best person. they will move at the right pace.

>> we have had the fortune of having the mayor come back to this company. we are very happy to have him back. bill, has that ever hit your vision of ever going back to microsoft full-time? >> my wife melinda and i are enjoying that. i am not going to change that. i will help out part-time. >> there is a lot more to this exclusive conversation with bill gates and michael bloomberg, including their thoughts of the state of technology. you can watch all of it on bloomberg.com or go to our award-winning tablet app. coming up in the next half hour, financial leaders gathering in davos for -- plus, what makes a great leader? some of the biggest in business tell us what they think. ♪

>> this is "lunch money" on bloomberg television, also streaming live on bloomberg. tom and your tablet smartphone. today's moving pictures of or the video is the story. video of protesters clashing with police in kiev. the protests have turned increasingly violent since the prime minister push through anti-protest laws. protesters threw molotov cocktails at police who responded by throwing rubber bullets and smoke bombs. violence in thailand as well were a state of emergency has been declared in bangkok. the move gives security forces more power to control violence during antigovernment protests.

ms traders want the prime minister to resign and have requested february 2 elections be postponed. also in thailand, customs officials discovered rhino horns in luggage said to be worth at least $600,000. they were stashed in a suitcase on their way to vietnam where they are ground into powder for use as an aphrodisiac. the number of rhinos killed for their horns has been soaring. south africa says at least 1000 of the animals were killed last year alone. ceos and world. leaders are gathering in topless for the world economic forum. brian moynihan sat down with erik schatzker and stephanie ruhle this morning. the first question was how do you repair reputations at banks like his? >> if you say what is the purpose of the financial institution, to help our customers with their lives. we've done everything we can and as we continue the compliance and risk infrastructure, you won't find those types of things

repeat, but you are still finding them. >> you say you felt the worst of the mortgage litigation and settlement was behind the of a. >> if you look at a lot of different cases, because we are the biggest because of the countrywide acquisition, we were deep into this earlier on. fannie mae and ready mac come up we settled with the private label litigation two and half years ago. there are still uncertainties and we have investigations by the department of justice and we will deal with that but the reality is what we were able to and had to get to over the last few years to clean the balance sheet up starting and 10 and 11, we did a lot of work and it cost a lot of money. a lot of the work has been spent >> people see numbers like $17 billion. brian moynihan has to write a

$17 billion check. when you saw jamie dimon had to write a $13 billion check, did you say oh or i know what that feels like? >> you always say both, probably. the similarities between companies have be sorted out case-by-case. as i said before, we have a lot of experience in this, so you have to take it case-by-case and brick by brick. if you look at the fundamental putback risk, you've talked a lot about that. >> how tough is it going to be for bfa to manage through the paper of quantitative easing? is it a challenge or opportunity? >> clients losing money -- that's an opportunity but we saw clients going from 152 160 basis points, it's a doubling of rates since late last summer.

people are anticipating what the fed is going to do and the advent flow based on the economic news. our job is to be in the middle and help people move money around. it is the client business. we have proprietary trading, that's what you see in the flows as a post to principal risks. >> all of this talk can make you thursday. that's where monocyte or bruise come in. hans nichols take this in. >> thanks for coming. >> welcome to the brewery. >> thank you.

>> your beer will be drank by all the captains of finance and heads of state. you have an important job. >> i think so. you have to make a high-quality beer. >> is it hard to brew when you are this high up? >> yes. we have to pressure cook to be a solution. >> this is the malt and barley that has been cooked. >> quite good. >> it taste like a beer. >> after fermentation, a goes to the storage tank. for another seven or eight weeks.

especially airing the world economic forum, there is a lot of champagne and wine that is drunk, but -- >> beer for breakfast, champagne for lunch and wine for dinner. >> exactly. >> you can watch our full coverage of davos. morrow, we will speak of -- speak with a member of bain capital partners. the clouds don't look like these these in davos. the high price of storing data in the cloud, that's coming up next. then we will hear from the likes of bob mould and ben moshe a on how they got had. >> in company, it is all about ♪

>> in company, it is all about

the cloud. lenovo is in talks for a server business for price between $3.5 billion and four point $5 billion. they are looking to expand into storage equipment and servers. you may recall ibm sold its pc business to lenovo back in 2005. software giant sap has been moving into servers, but it is coming at a price. sap pushed back its profitability target by two years, saying operating profit will probably reach 35% of sales by 2017. the co-ceo tells us why the delay is worth it. >> wouldn't you rather have a career -- a courageous management team that says let's go for market share in the cloud and be the cloud company and postpone the 35% margin ambition and capture the market share?

what we decided to do is accept the cloud revenue stream as you said. for the first couple of years, it flattens out the margin, but by year three, it kicks in and that's why in our intermediate guidance, we said we would hit it to 35% ambition. it will also deliver a 3.5 billion cloud company to the world. that's the largest mega-cap cloud company in the world and that is sap. >> it's not just tech companies taking a hit. unilever says slowing growth in emerging markets will hurt sales this year will stop the maker of dubs so and then jerry ice cream gets a lot of its income from india and china. in spite of it all, the ceo is bullish. >> in these emerging markets, there's lot aspiration and

consumers are trading up. you get significance among the people entering the middle class every year and urbanization requires consumer change in the europe and the u.s., consumers have to downsize to change that behavior. we have different strategies for different regions. but how ceos do their work is a lesson in leadership. betty liu got it down on paper and is out with a new book about what ceos say what you need to know how to get ahead. the biggest names in business answer a different question each day. today, what helps with your career? >> you have to work hard there's just no getting away from that. you have to prepare like crazy. >> it probably sounds counterintuitive, but your

family has to come first. >> not just the easy fix, the guy who went to harvard or the woman went to princeton, but the teams that work together, the balance of understanding what it takes to win goes so much farther. >> being a math major, i solved problems everyday. >> i'm dyslexic, so school was very hard for me and taught me persistence. the editing dyslexia does for you is gives you more creativity about how you look at problems and think about problems. we think about problems much differently than the majority of people do. >> having the courage to do different things. my father died when i was 10 and left my mom with four kids and $250,000 of debt in 1954. she taught us we could succeed and go forward. that has been the against attribute of my success. >> i took a lot of interest in

marketing when i was in marketing and tried to work on as many cross functional things as i could. >> all week, we will have more from those interviews on how to get ahead will stop if you are headed to vegas and want to know how to beat the house, meet the whale. he made $15 million playing back laying blackjack. in today's wild card, betting big. ♪ >> in today's wild card,

betting big. it to vegas if you can't score super bowl tickets, plus it will be warmer there than giants stadium. close to $99 million was wagered on the super bowl according to

the nevada control board. it can go even higher this year as the brokers -- as the broncos face the seahawks. remember that denver broke the record for the largest point spread. don johnson knows a thing or two about betting in vegas and trish regan went behind-the-scenes. it's the story about how one no- name card shark became a vegas legend, winning $15 million in the matter of months will stop >> every gambler knows when you play at the casino, the art -- that on star not in your favor. the house always wins and the rules are set in stone. >> if you play the big six wheel , the wheel right in front of the casino, you don't have much of a chance. >> he's the ceo of mgm which it owns a third of the casinos on

the vegas strip. but let's say you're going to spend a thousand dollars will stop theoretically, we are going to win 20% of the money you circulate. >> on average, you will lose 20% of the money you play. but what if you could change the rules and twist the odds? >> we will negotiate for high- end players. johnson is a blackjack player who won $15 million in atlantic city in a single winning streak. >> i beat them big. >> is because he's in industry insider who knows what to negotiate before he stepped into the casino. for starters, he wants a that's. >> they were letting me play $25,000 a hand. $75,000 a swing, it's not hard to win $4 million. >> it's also not that hard to lose $4 million. >> i did not have $4 million to

lose all stop lex he negotiated a discount, 20% rebate on all his losses. once he secured those discounts, he turned his attention to the rules of the game. >> walk me through the rules they gave you that were advantageous. >> when standing on soft seven, if the dealer gets an 86, the dealer has to stand on hand instead of taking another card. doubling on any two cards. some places have rules that will not allow you to do that. splitting hands up to four hands >> even with his rules, the 20% discount and the big bats, the house still had a tiny advantage. >> there was a house built in. >> not satisfied, he figured out how to tip the game in his favor.

>> if you can beat the dealer, you can beat house. >> there are not enough players that will deal $100,000 per hand. >> and you encourage them -- do you encourage them or distract them? >> are all kinds of distractions for dealers. i had stars or five or six or seven girls that would pose as a girlfriend to distract the dealers. but does it work? like there's always a circus going on. the more it looks like one giant party, the better it is for my side of the table. if there is a distraction and they make a stake, what's the worst that can happen? i get a free bet. >> and you know immediately what may have made a mistake. >> i think i've caught every mistake that's not in my favor and made them them to give me the free bet because those are the rules of the game. >> that's how don johnson took on the casino industry in

atlantic city. he won $15 million and became the legendary gamblers -- legendary gambler that the house. >> to see the rest of the story, watch the full one-hour documentary that debuts tonight at 9:00 p.m. eastern. finally, what are the odds of a cowboy on a ski slope? turns out it's actually pretty good. over 100 professional cowboys in steamboat springs colorado at the stampede event will stop that's also today's mystery meat. ♪

>> it is 56 minutes past the hour, which means bloomberg television is on the market. it was a mix today the dow jones 0.3%.

you have the ims upgrading. on the other hand, this point earnings from johnson and john a -- disappointing earnings from johnson and johnson. we want to update you on ibm. earnings. revenue came in under $28 billion. gross margins fell short of estimates. one name we are watching his blackberry. breaking news after the closing bell. the company is investing the the canadian real estate holdings. we are joined by susan miller in toronto. what is the price tag in your estimation? we are trying to get a sense of this. to give you a sense of what tree million square feet is, the

world trade center in manhattan -- that is three millions were feet. lack barry says -- blackberry says they are getting rid of more than 3 million square feet. prime manhattan real estate is worth more than suburban canadian real estate, but you can best this will be hundreds of millions. as soon as we can get a handle on what, we will add that to our coverage. >> stocks are rising on this news. what kind of confidence is this in the ceo? another vote of confidence. in late trading almost another four percent. what he has done ever since he took over his talk to investors in plainer language not sugarcoating the problem's. combine that plain speaking with

a series of concrete steps. that is what investors wanted. they want someone that can make real change and bring in people that they have confidence in. >> talk about real change. the defense department name the its primary device. we're talking 80,000 blackberries. was a little confusion around that, because made it sound like the pentagon was suddenly ordering 80,000 blackberries. essentially what has happened it shows blackberry is dominant in the beltway, specifically with the pentagon. the dod is launching this new network on january 31. 90 eight percent of the devices

theybe hooked up to it -- are blackberries. for everyone saying, forget it. piper is gone. certainly among government circles, they are still very much the dominant force. >> thank you for putting them in perspective. we want to keep you updated on more breaking news after the closing bell. pimco's manager will be replaced .y hodge for on the markets, i am alex. ♪ .