things are better. >> in the bill and melinda gates foundation, gates predicts that by 2035 there will be almost no poor nations left in the world. coming up, we hear what these titans are doing to see that through. bill, i read through your letter and what i noticed in the tone was that you are very optimistic. you say look, we are better off than we were decades ago. where does this optimism come from? >> i think i am naturally optimistic but also the facts are on the side of the optimist. it is dangerous that people are focusing on the bad news and not seeing the progress we have made. it means they don't look at the best practices. it makes them less generous. we are raising poor countries up. most people live in middle-income countries now. there is more to be done on health and agriculture, but the track record success, if you don't see that you are not going to participate in what we need to do. >> you say that there will be no poor nations by the time we reach 2035. >> almost none. landlocked countries in africa, north korea if they don't change the government, but it will be l

bill gates will -- john thompson will take over as the chairman.ill gates will stay on. >> i am glad sake a -- glad up.a has decided to step i'll have a third of my time available to meet with product groups and it will be fun to do find this next round of products working together. i am joined by jon erlichman, who helped break this news from l.a.. tell us in the final hour how this decision officially came together. important inoad is the context of this whole story. this was a company looking at other internal candidates. it were looking at ceos from other shops be in at the end of whoday they picked somebody knows bill gates, knows steve ballmer, has been there for over two decades. he says he is going to be ruthless about allowing this company take on the next chapter of what microsoft will be. thisill gates role come a is still a tough one to figure out exactly what ultimately he will be doing. presumably have a chance to be a bit more hands-on on a variety of things that satya nadella is pushing forward with. they have a good enough relation

bill gates will weigh in on issues. i think at the end of the day, that is where he will spend more time as opposed to dealing with john thompson can now deal with in a bigger way. >> speaking of mr. thompson, what do we know about him? >> he is very well-known in the world of technology is a leader. i think if you're somebody leaving this search process, he obviously felt he was in a position to add something to the table. you would expect help with the transition, especially with investors. this is a company investors expect a lot from. they want to see where it is going. trying to position this company in terms of the technology and where it is going. joining us from los angeles. thank you. for all things tech, tune into 1oomberg west twice a day at p.m. eastern time and 10:00 a.m. in the west. easternin at 6 p.m. time and 3:00 in the west. up, the question of accountability for cyber theft. ♪ >> welcome back. december's credit card breach at target was the subject of a hearing today on capitol hill. the company's ce

in terms of the kind of stuff that bill gates meant -- may end up doing, probably a sounding board for the seo as he looks at areas they may be focused on. if you look at where till gate spent some time on the past when it was on search. maybe it is a common nation a variety of these areas, highlighted from hardware services. >> what about trying to fill those big shoes? it is one thing to say bill gates, he has been owing from the day-to-day -- he has been gone from the day-to-day operations and steve ballmer has been there for a while. they both have more than four percent of their brought -- of the stock. >> that was one of the factors that are located the ceo search is that it will be an easy thing for someone who steps into this job to do and maybe that is ultimately why he got the job because he is someone who is really with both of those people and would not have been able to climb through the ranks without getting support from both of those people but sees an opportunity to sort of put his own stamp on things. in his commentary today, he certainly pointed back to the plan that

bill gates is there.ou still have steve ballmer very close and paul allen is hanging around seattle. >> that is a lot of baggage. our guest host for the day, thatr in chief of a weblog covers everything auto related. it makes sense it is matt miller's favorite. >> it branches out to one million other sites i love. >> it does. we want to highlight market, and equity analyst who covers microsoft, is with us as well. with you.t is this good news? >> this is who i suspected for a while would be the new ceo. the president of the tools division, the largest part of the company, and the architect where the platform for microsoft came from. this is the future of microsoft. he has been part of that and is given more responsibility over time, more reorganization. i've been figuring the most general -- i frankly think it is good for the company. >> we have discussed a lot when the news came across the wire, microsoft seems to have failed at almost every turn when it comes to the consumer perception of its products.

bill gates on the technical side. expecting over the past couple of years that gates might become a little bit more involved in certain ways in this company. you know, microsoft and bill gates himself have sort of tried to tamp down those expectations. i wonder what the signaling is from here. because it's a really tough diplomacy drop on multiple fronts. satya nadella needs to make people, the board, investors feel like he's moving fast, but at the same time not trash the work of his predecessors. he's got two pretty iconic names who still have a big stake in the company, still going to be active in the company but he's got to chart his own path and convince investors and employees that he's willing to do whatever it takes to bring microsoft to the next level. so, bill gates and steve ballmer, important to watch here, too. >> all right, jon, thank you for that. and jack welch former ceo of general electric did tweet about this a moment ago. said love the microsoft ceo decision. someone who knows the business and has

steve jobs versus bill gates.ate of which icon had the most influence on changing the world. another cnbc first 25 contender, mark zuckerberg striking a major deal but will this bold move pay off? "squawk box" returns in just a moment. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. cozy or cool "meow" or "woof"? exactly the way you want it ... until boom! your mattress a battleground of thwarted desire. enter the sleep number bed. an innovative design that lets couples sleep together in individualized comfort. he's the softy: his sleep number setting is 35. you're the rock, at 60. as your needs change, you can adjust your sleep number bed, so you can sleep better together. visit one of our 425 stores for the the largest closeout event of the year with 50% savings on innovation limited edition beds. know better sleep with sleep number. >>> welcome back to "squawk box," everybody. first in business worldwide. i'm becky quick. let's get to

bill gates stepping down as chairman and into a new role as technical advisor. gates likely felt comfortable stepping aside as chairman with nadella now in charge. both men are technologists are deep knowledge of computer science. john thompson will assume the role as chairman. his record is mixed. as ceo of semantic he grew revenue ten-fold but also oversaw the controversial acquisition of veritas in 2004. thompson left semantic in worse shape because of that deal. as for steve balmer, he remains on the board at least for now. one question for nadella, will he have the courage, the self-confidence to stand up to gates, balmer and the board especially since he has never run a company. tyler, back to you. >> thank you very much, josh lipton. >>> our next guest is a seattle venture capitalist who has worked closely with microsoft and mr. nadella over the years, and he thinks nadella is not afraid to make the hard decisions needed to lead a company of microsoft's scale. mr. mcelwain, welcome. nice of you to stop by today. tell us what you know about mr. nadella. wha

you have satya and bill gates coming back. think a lot of engineers and product people within microsoft are saying this is great. this is exactly what we need at this point in time. i think we're going to see bill gates play a slightly larger role here. >> is he the right man for the job? some critics said it doesn't bode well. if he is the best guy after five months, give the guy a chance. >> i think he is a good, solid choice. i have spoke on the a few microsoft employees a couple were slightly disappointed looking for an outsider to come in and shake things up. speed is of the essence here. he knows the company well. if he can woman in knowing the culture and people and come in and be a strong leader to move quickly and make changes, i think that will bode well for him. i think he'll have a three to six month honey moon. there are other changes at the board level which are going to be curious to see how that pans out. he has never been a company c.e.o. before. >> the markets will give him six months to achieve what? does he

bill gates started with nothing. perry started with nothing. they are all billionaires. that is 7 out of 10 of them who started with nothing. the thought that it is rigged and you can't win, our president says he doesn't believe in freedom he doesn't belief in capitalism. what he is saying the underlying tone is we have to move toward government intervention to prevent this unfairness. >> if you look at household income over the years americans have gotten richer in 1901 average intomorrow $750 nowadays 27,000. today it is twice that 62,000. >> i am at 18,000 dollar first year out of college. three years later 250,000 dollars the next year i made $6,000. you know whose fault all of that was? mine. everything was my fault. when it was working and when it wasn't working. i am in an environment but it is not a crisis of inequality but belief. we sell young people on the idea they can't succeed because the game is rigged we are selling them that socialism is the answer. >> there is a big difference in the game. i had two

named its new ceo and is inviting bill gates back to campus. its firstll announce quarterly earnings later on today. hans nichols joins us now from berlin with more. will nadella make? the first question is easy to answer. it is $18 million in total compensation for the first year that is quite a bit of a boost when you compare it to steve balmer. here is what we know about mr. gates. he is going to be coming back to be -- founder and technology advisor here at he will be spending a third of his time on campus. before, they said he spent about 1/5 of his time at microsoft. what ishis role of microsoft's future? what is the news coming forward? adella has hinted he will focus. that could mean cloud computing and may be their search division, being. a lot of challenges there. he will have oversight. he will have some of that knows his way around the tech story with bill gates on campus. you isher tech focus for that numbers that are due out from twitter. many people are comparing them with facebook and try to do some analysis. i wonder how long i

devices mandela replaces steve and homer to become only the third ceo since microsoft was founded by bill gates in nineteen seventy five. gates will step down as chairman but will stay on as a technical advisor. and to take a closer look and then microsoft decision on that enjoyed by the end of the new microsoft. he did and innovation kickstart don't say that and i'm not side it could have shaken things up a bit. instead the board decided to go with an inside a deep knowledge of microsoft's complex businesses and culture. i know that two women about how the selection process evolved from a twelve week if we have two sides in uni so i can better well there's there's take the insider who was the veteran who knows how the one hundred thousand plus company like microsoft works where's take the outsider who can spice things up. and the reality is that an outsider is more risk no matter what there's more chance it will fit the bill to speed acting the same process might suspect over you are looking for their ceo and it went through for one hundred candidates of qualified candidates both internal and

because the bill gates example of who's gonna run the software on the computer? who is the player or is there a player in the i don't want an app to turn on my light bulb, made by phillips and turn on my web cam made by you and to open my curtains made by curtain company, i want one thing. and if i can step in and be that one thing, then i'm the king of -- i'm bill gates of -- >> i own your home. >> i have a contrarian view point on that maybe, i think people right now do not need the single connected app, because there are aren't that many things that people want to do in the connected home. we have to focus on the two or three things people want to do this is home awareness, like home monitoring, energy management and lighting control. after you get past that, it really gets into niche markets, opening up another app for those folks is really into the big of a deal. the operating system here that you need to think about is ios and android. how do we make those work with all of your connected -- >> an app develop here is going to dominate this software, not an o

i will help part-time. >> that is the word from bill gates. what do the management experts have to say? >> he has done a really and job of what he has done in health care. i have a a great admiration of his philanthropy. it is amazing. will he go and do that? he says he will. he says that his is a full-time job. or will he be in their two days a week looking at product? it's time for a total makeover. i have great respect for what bill did but i think it is time for a new generation to come in. satya nadella is in his mid-40's. let him run the show for the next 10 years and give him the support to do it. >> what about the big picture? >> they need a major transformation. balmer has been there too long. 14 years has been too much. the company has missed opportunity after opportunity in the i.t. space. it has relied very heavily on office and windows. in many ways, it is a classic innovator's dilemma. they are latched into the old world that is going away. they have not moved progressively to mobile. yes, facebook missed it, but they came back a

bill gates spoke a little bit tt this earlier todthis m him than me.e. d tolled that he isto say.d to y stepping up, increasing the time he spends at the company. t t i will h to meet with gtos and it will be fun to define this next round roducts working together. >> one third of his time, that is a substantial amo subof his time for someone who is focueod things these days.thes ms of the kind of stuff that bill gates maateniluptete doing, probadosounding board for the ceo asfor the ce areasrh they may be focused on. if you look at where bill gatesa spent some time on the past when it was on search. maybe it is a common nation a variety areas, highlighted from hardware arervices. hat about trying tt about tr those big shoes? it is one thing to is onill gates, he has been gone from tht day-to-day operations and steve ballmer has been tllre for a while. they both have more than 4% of e stock. >> that was one of the factors is that it will be an easy thint one wh tinto this job to do job that isb th ly why he got the job because he is someone who iss sn rea

. >> in addition to nadella taking the top job, bill gates has stepped down. gates will remain very involved as a technology advisor. we have a roundtable to discuss now. michael pim joins us via skype from seattle. joining us from l.a. and our editor at large, cory johnson joining me. what do you think about what you heard from satya nadella and that address? >> i think he is right. i think in a number of these markets. in a number of cases, i think microsoft is its own worst enemy in trying to overcome internal struggles and how it regards innovation and how it can move forward quickly in these markets in a way that can sustain organic growth and innovation and as well revolutionize the culture within the company. >> we have not gone to interview satya nadella just yet. we are getting to know him. they said no to interviews today. but cory, what did you think of what you heard from him? is this a guy who can inspire the troops? >> i think he has a clear vision of what microsoft will be. i get the sense that bringing bill gates in, you know that bill could no

bill gates who is stepping aside as chairman-- will transition into product development for the company. he will also continue running the gates foundation with his wife. plenty of hype is surrounding possible layoffs at dell. reports pegged job losses as high as 15,000. however a source connected to dell tells re- code-- the number is closer to a couple of thousand. micheal dell owns the computer company and is not require to give layoff details. google has been told to move its so-called "mystery barge" out of the san francisco bay. the floating four-story vessel has been parked in the bay for months but officials say the tech giant never applied for proper permits. the company has been tight-lipped about business aboard the barge and has one off the coast of maine as well. apple, microsoft, sprint and at&t are pledging money to bring high speed internet...to classrooms and libraries. "some of america's biggest tech companies have decided to join this effort, with commitments worth more than three quarters of a billion dollars." president obama is seeking donations from corporate amer

bill gates is stepping down as chairman, he will become a technology advisor. really got the sense that he is focusing on trying to change and save the world for the better. satya nadella will take over. right now microsoft shares have been movvng higher. as we take a look at the stock up $0.10, we will have much more on microsoft and the changes at the pump and if they should affect your decision to keep the stock, by the stock, sell the stock, stay tuned for that. you can definitely not say stocks have made a comeback. we are up, but not nearly what we lost yesterday. today games have created new uncertainty about the federal reserve paper plans meaning scaling back the bond bond purchases put in years ago to stimulate a very tough market. david asman asked that pressing question, here's what mr. fischer had to say. >> is it fair to say even if the stock market slide continues say to another 10% or 10% of the total slide without the economy tanking, we get a fair jobs report on friday, the fed will continue along its current tapering course? >> all i can tell

that diminishes my status as a citizen or diminishes my equal protection. >> if you sue bill gates or if you're a co-worker who sues a coal company or the person who drinks some water in west virginia. >> just a crazy example. >> who sues the company that managed to leak the chemical into the water supply. in those places in which we have imbalance, there's a deep sense to which our commitment to equality under law is just being shredded by the fact that we tolerate massively unequal amounts of resources to pour into people's legal representation. >> no question. this is not hypothetical at all. the rates at which coal miners win claims for black lung. the rate at which they win is under 15%. these are not people who are inventing black lung. this is black lung conditions. >> in criminal cases we decide what they should be able to spend against themselves. no one can spend more, even if she has the money. those who can't afford the limit, can receive a subsidy. civil cases, we decide what the plaintiff should be able to spend. pursue a particular kind of claim or the defendant should

spending time by using your influence, putting you on the same level as business luminaries like bill gateswill linkedin stock that a bump from this? baking mystery, team usa at the podium at the first-ever olympic men's event in sochi, a listen in perseverance, strength and teamwork. what can business leaders and investors learn from these medal winners? the men's look team reveals their fight to the top. google everywhere. tired of all those pesky digital roadblocks when you try to log into wireless hot spots? there will soon be an apps for that, from the tech giant that is rolling out and all high-speed broadband network in u.s. cities, the best of stocks. "countdown to the closing bell" starts right now. ♪ liz: good afternoon. i am liz claman. the last hour of trading. this market is touch and go. until 35 minutes ago we were set to call this the teflon market, higher for most of the day even in light of more "imus in the morning" data but then the teflon turned to a red tide. market started turn lower in the last 35 minutes or so, the dow fell 31 points but look at this coming back. we

warren buffett, oprah, tyler perry, bill gates started with nothing.started with nothing. so the idea it is readying you cannot win that is where i have a problem with our present and because he says he does not believe in freedom or capitalism but what he really says bill whole philosophical argument is we have to move to government intervention to prevent this unfairness. john: lecter household said, americans have gotten richer. seven and a $50 but in today's dollars that is 20,000. 1947, 31,000. today it is 62,000. >> my first year out of college and 80,000 and three years jittery to of hundred 50,000 an extra 96,000. do you know, whose fault that was? might. every one of those was my fault. i am in the environment and i believed but it is not a crisis of inequality but a crisis of belief we can go into the marketplace to bring in an end to resell them the idea they cannot succeed resell them that socialism is the answer. john: i had to parents. i could go to a good high school. many people have a harder start. >> absolutely. people start from diff

things are better. >> in the bill and melinda gates foundation, gates predicts that by 2035 there willmost no

on a special "titans at the table," we chat with microsoft chairman bill gates.he world's richest person and with that great wealth comes great responsibility. he wants to destroy the myth that poverty and disease can't be eradicated. >> joining gates, a friend and fellow philanthropist, the bloomberg lp founder and former new york city mayor, michael bloomberg. >> there are fewer people starving, fewer people sleeping without a roof over their head. things are better. >> in the bill and melinda gates foundation, gates predicts that

warren buffett, oprah, tyler perry, bill gates started with nothing.th nothing. so the idea it is readying you cannot win that is where i have a problem with our present and because he says he does not believe in freedom or capitalism but what he really says bill whole philosophical argument is we have to move to government intervention to prevent this unfairness. john: lecter household said, americans have gotten richer. seven and a $50 but in today's dollars that is 20,000. 1947, 31,000. today it is 62,000. >> my first year out of college and 80,000 and three years jittery to of hundred 50,000 an extra 96,000. do you know, whose fault that was? might. every one of those was my fault. i am in the environment and i believed but it is not a crisis of inequality but a crisis of belief we can go into the marketplace to bring in an end to resell them the idea they cannot succeed resell them that socialism is the answer. john: i had to parents. i could go to a good high school. many people have a harder start. >> absolutely. people start from different plac

bill gates is out as chairman. where microsoft wants to go next. a lot more coming up on markets now. ♪ cheryl: you had a super path of destruction for the super bowl. dennis: the second time just in six weeks. i want dow 16,000 back. we have stocks now and every 15 minutes. nicole petallides. nicole: it is not to say it will not happen. we have had a tough go of it. we saw the down 326 points. we are seeing a little bit of a bounce back. they are not really sure which way the market will go. not forget friday's jobs report. do not forget we are still noting the volatility is still here, at least for right now. the market remains a concern as well. we have a lot here that we are digesting. we have company earnings from cores and yum brands and jcpenney and the like. cheryl: thank you very much, nicole. a drop in the annual budget deficit. peter barnes is in washington, d.c. peter: the deficit reduction is thanks to billions in extra dividend payments. a new annual forecast. the cbo now projects a forecast of 514 billion for fiscal 2014. that is les

he replaced company founder bill gates, so he already has big shoes to fill.allenge for thompson and the man he picked as ceo is to keep microsoft competitive in software, mobile, and video. >> the issue for us is about focus. one of the reasons we chose is he has a new ceo strong technology background. he understands exactly what needs to happen to move microsoft forward. >> that means competing in the cloud. microsoft's website says it currently controls 50% of the market for enterprise class storage. amazon, google, and ibm mostly controlled the rest. thompson says he has the goods. has demonstrated an ability to provide a cloud-based platform on which others can build applications. on top of that, office 365 is a very successful cloud-based application. i think the combination of those things provide the foundation on which microsoft can clearly grow its cloud-based business. the other dimension of microsoft strategy is focusing on how we become even more relevant to consumers. devices and services strategy launched about a year ago is very much a part of

. >> will bill gates be watching the super bowl? >> he cannot make it. he is spending time with warren buffett. he will be watching and rooting us on. >> microsoft. they are looking for a ceo. why can't they find a ceo? >> obtusely, i know bill but i am not close to the board process. if you look at to be job running the microsoft, i used to tell steve ballmer, it is one of the toughest jobs. you are completing was so many -- competing with so many different companies and products. a ceo has to decide if they can compete in so many areas where joe cool some the larger -- or juggle some of the largest investments. >> what would you recommend? >> i would have to get in there myself and give my advice on the outside. i think there will be some amount of simplification. but the argument is basically, if you are thinking about the future of the platforms, smartphones, laptops, or whatever, something like search widget google dominates right now. is it integral to what you want to do in the future or can you focus on other areas? those are really hard decision

with bill gates? to expand ourg operations immediately to asia.tion facilities stop willful grimace with six of the largest companies in the world. we will ramp up our production facilities and we have a deals with six of the largest companies in the world. plants indentifying novel ways and we will take off and make the world a little bit better. scrubber adds now. mayonnaise and cookie dough and more to come. eggs nowhave scrambled . we have more on the shelf stop soul-searching. -- we have more on this show. -- soul-searching. more to come. ♪ >> the company behind global footwear brands hush puppies report earnings today. in 200 countries including mongolia. themberg looks at what strategy is in a cold climate. mongolians look at footwear carefully before stepping outside. the coldest capital. the temperatures can pleasure to 40 below. it makes the needs of very different. -- theylians are very like very much the outdoors and we are focusing on the work booths which the cat product. for the mines. we think there is an opportunity for the lifest

bill gates wanted ll ghange the world. steve jobs wanted to change the world.is sounds corny.ds to say change the world. people who do not want to change the world, who just want to flip their company those people are , not going to change the world. but if you nt to change the world, you may fwol, but if you are smart and patient and you want to make it better, but this is not the right timing, but yob want to go despite all the obstacles, we will make much foundation, those are the kinds of people who of change the world. definitely larry. >> he is a great thinker. >> much success to this thing. it is a ready great. i wathinking of that great time, bill and steve, so much good has come out of that. you are required to come back tt the table. that is part of the deal. >> all right. it is in our contract. >hank you for joining us. see you next time. ♪ ♪ ♪ ♪ >> live from pier 3 in san francisco, welcome to the late edition of "bloomberg west," where we cover the global technology and media companies that are reshaping our world. i am emily chang. our focus is on

. >> will bill gates be watching the super bowl? >> unfortunately, bill couldn't make it.cause he's spending time with warren buffett, i believe. but he's going to be watching. and rooting us on. >> microsoft. they're still looking for a c.e.o. why can't they find a c.e.o.? >> well, i'm not -- i'm not really -- obviously i know bill. but i'm not close to the board process. but if you think about it, from the job of running microsoft is one of the -- and i used to tell steve ballmer this is one of the toughest jobs in the world because you're competing with so many different companies. you have so many different products. and so any new c.e.o. coming in has to decide, do they continue to compete in so many areas? or do they jettison some of the larger investments that have already been made? and focus down on less -- on a lesser number of -- >> what would you recommend? >> to do that, i would have to really get in there myself. and i just try to give my advice on the outside. i think they'll probably be some amount of simplification. but the argument i think basically is if