ed: in the context of the u.k., the cma was focused on cloud gaming. asked bobby about that, he said it is an inconsequential part of the business, which is fascinating. microsoft is going big on cloud gaming, transitioning the xbox from console to cloud, bobby thinks it is inconsequential. that was a surprise out of the interview. caroline: that seems to be the focus, it is a real driver of innovation. a brilliant interview, thanks for bringing it to us. coming up, we talk about the tension within silicon valley and down the biggest stories over there and beyond. we are talking about dropbox, some of the concerns around layoffs. a 16% of the workforce likely to be cut. this is in part due to natural maturation of the casting businesses, so says drew houston. we are down 2%, this is bloomberg. ♪ go. go scientist. go software. go cure. go production. go faster and safer. emerson automation software helps breakthrough medicines get to market at warp speed. go human go. go boldly. emerson. ed: germany and talks to limit the export of chemicals to china th

i mean, they had meetings on friday at the cma.any people took that to sort of look as a very optimistic point. why would you be meeting with them if you weren't hammering out any details about sort of an agreement, so to speak market was wrong >> but was there a premonition nadella talked about a great product, did not mention activision blizzard. almost as if he had an inkling i think he was saying, either way, i do well >> the point has to be, they're not moving on as of yet, and activision needs to wait until microsoft finally pulls the plug, but as we've said many times, this was the most important decision of all the regulatory reviews, in part because the appeals product itself is so long, so complicated, and so difficult to win. we haven't seen a win in a very, very, very long time, as long as the reviews have gone back >> and we will be talking to dave from carrier. this would be a german review, but if it's similar as this uk is propounding, that deal is not going to happen. >> the deal that people are now wondering about

but one thing to highlight is what the cma said. the customer benefits here and again this is the cma's view were short-term in nature, and likely to be achieved anyway absent the deal. that's something that all regulators are looking at. are the efficiencies from the deal, deal specific or would they happen or could they happen outside an actual merger transaction. the cma told us, other regulators like the ftc told us they thought those benefits were adding call of duty to game pass, for example, are things that could have happened and evolved naturally. >> you're suggesting the regulatory -- the global regulators, it is all converging i have a different view, which is that the u.s. has decided for reasons i find inexplicable and maybe they are understandable to effectively outsource their antitrust enforcement to europe. i don't understand it. it doesn't make sense to me. the media -- this media context, text context, even in the defense context, this is becoming a meaningful issue. and i can't figure out why the u.s., which is -

the cma decision on the microsoft deal as irrational.eresting to see where this one goes and what legal remedies there are. coming up, european banks outperforming today after upbeat earnings. very different stories. we will have the details next. this is bloomberg. ♪ >> we think the ecb will pub a bully and up in the high threes. our view is that inflation is more persistent than the market now believes and therefore will have a longer period of that high short-term rate. will there be an impact on the economy? of course there will. kailey: barclays traders surpassing expectations in the first quarter with a surprise increase in fixed income revenue. a nice bounce as a result, francine lacqua got to sit down with barclays ceo and exclusive interview today. they talked about his expectations for interest rates and market volatility. >> volatility alone, while it brings opportunities in certain businesses for us is something that gives us caution. the investment banking landscape, we did well in investment banking. but we were the least -

cma dropped a huge part against the argument that focused on the console gaming market. and the cloud infrastructure to run it it's unique in that position and owning "call of duty" will give microsoft an unfair position in cloud gaming and microsoft's president, brad smith, saying microsoft will appeal we know the cma is likely to say no again this is not how microsoft wanted it to go they were prepared to accept some conditions, like guaranteeing nintendo it can get a "call of duty" video for a decade we're still working through the ftc lawsuit. if microsoft can't win, they appeal, the deal will likely die, a $3 billion deal, guys >> and we were talking to those familiar with the deal, they walked away. it's tough to appeal brad smith said we remain committed to enforcing these agreements by regulatory remedies >> this is what they've been toin doing the whole time >> i don't know what they can offer. microsoft, such a small piece of the gaming market. sony is the real winner here because they are the leading in console gaming by a long shot. microsoft is like number t

s cma is blocking this deal? sophie: we always have regulatory risk. deal of this size it is going to be very high. on that front, it is not a complete surprise to see the cma say actually, we have concerns. for sheer size of activision's ip means the risk is high. on the other side, it is disappointing to see something like this, the rhetoric of london is a safe haven for ambitious companies has been going backwards. seeing this kind of ruling come through does very little to help that perception. of course, the authorities need to get the right balance between keeping things fair, and making the right rulings, but also you don't want to also risk pulling more growth out of what is already a difficult region. dani: really great to get your thoughts this morning, sophie lund-yates, lead equity analyst at hargreaves lansdowne. oil is steady today, but makes a round-trip from where we saw gains post opec+ cut. more on that next. this is bloomberg. ♪ dani: oil is trading around $75 a barrel, making a round-trip since the opec+ decision to cut production.

microsoft added that the cma had a flawed understanding of the market. they will now appeal.ony playstation in terms of sales but the company does have a big presence in cloud gaming. we didn't want a situation where the current dominant most powerful platform in cloud gaming purchased an important input to its competitors and therefore undermined that growth. the deal needs approval in the uk, eu and us to go ahead, so today's decision, the first from those jurisdictions, could scupper it. should this merger now collapse, it will be a major relief to bosses here at sony playstation, who have consistently opposed the deal. at one stage, it looked like this would go through, so today's result has come as a surprise to many. the appeal process could take several months. steffan powell, bbc news. now it's just over two weeks to go until the eurovision song contest takes place in liverpool — and today king charles and the queen consort stepped on to the stage as it was revealed for the first time. colin paterson, was watching. three, two, one! eurovision�*s most famous act abba s

most people were expecting this decision to say, look, we're going to -- the cma say, look, we're going to approve it, but with some conditions that microsoft would have probably happily accepted, carl >> steve kovach with the latest on the pre-announcement. let's turn back to the big tech earnings strong reports from both alphabet and microsoft those stocks moving higher this morning. can the momentum keep up, when we hear from meta after the bell, amazon tomorrow. our next guest expects tech earnings to surprise to the upside, thanks to cost cuts and a weakened dollar. joining us now is emg capital founder and president, eric jackson. so eric, what were the readthroughs for you, from what we've gotten so far? >> well, i think mike was talking about how tech has performed versus the rest of the market you can really a draw a distinction, though, especially coming out of the reports last night about how big tech is performing versus the rest of tech, even there's stark differences. remember, we got out of the start of the year, the first five weeks of the year, where profitless tech was

microsoft added that the cma had a flawed understanding of the market. they will now appeal.s but the company does have a big presence in cloud gaming. we didn't want a situation where the current dominant most powerful platform in cloud gaming purchased an important input to its competitors and therefore undermined that growth. the deal needs approval in the uk, eu and us to go ahead, so today's decision, the first from those jurisdictions, could scupper it. should this merger now collapse, it will be a major relief to bosses here at sony playstation, who have consistently opposed the deal. at one stage, it looked like this would go through, so today's result has come as a surprise to many. the appeal process could take several months. steffan powell, bbc news. next thursday, people across much of england will head to the polls to vote in local council elections. the liberal democrats are hoping to make gains in the so—called "blue wall", mostly southern english areas traditionally held by the conservatives, like west berkshire. 0ur political correspondent helen catt has bee

microsoft added that the cma had a flawed understanding of the market. they will now appeal.tation in terms of sales but the company does have a big presence in cloud gaming. we didn't want a situation where the current dominant most powerful platform in cloud gaming purchased an important input to its competitors and therefore undermined that growth. the deal needs approval in the uk, eu and us to go ahead, so today's decision, the first from those jurisdictions, could scupper it. should this merger now collapse, it will be a major relief to bosses here at sony playstation, who have consistently opposed the deal. at one stage, it looked like this would go through, so today's result has come as a surprise to many. the appeal process could take several months. steffan powell, bbc news. here in the uk, the majority of workers at amazon's warehouse in coventry havejoined the gmb union. this could mean the company recognising a trade union in the uk for the first time, and lead to negotiations with staff about their wages, holidays and sick pay. 0ur employment correspondent zoe c

microsoft added that the cma had a flawed understanding of the market. they will now appeal.ud gaming. we didn't want a situation where the current dominant most powerful platform in cloud gaming purchased an important input to its competitors and therefore undermined that growth. the deal needs approval in the uk, eu and us to go ahead, so today's decision, the first from those jurisdictions, could scupper it. should this merger now collapse, it will be a major relief to bosses here at sony playstation, who have consistently opposed the deal. at one stage, it looked like this would go through, so today's result has come as a surprise to many. the appeal process could take several months. steffan powell, bbc news. now more on the cost of living because the price of making a humble cheese sandwich in the uk has jumped humble cheese sandwich in the uk hasjumped by over a third in the last year according to new research for the bbc. that is much more than the official rate of price and elation that is currently running at around 19% and the of a sandwich chain warns prices have

a bit of a backstory the cma opened a propose after microsoft, the initial investigation, would suppress the purchase of activism they even suggested microsoft spin off part of activision's business as a remedy, such as call of duty however, last month they softened their stance on this deal they found out afterward this wouldn't lessen competition in the consult market and it wo wouldn't be economically beneficial for microsoft however, they haven't made a decision whether it would reduce competition. that's what we're expecting to hear more about today later on they've been trying to offer don segs to some of its critics including sony and nintendo. they signed similar deal with nvidia microsoft said it has asking sony to sign the imminent deal sony hasn't yet played ball. the uk regulator is certainly one hurdle it will be a big deal if they approve that today but certainly they'll have to contend with regulators in the eu as well as the ftc in the u.s. >> the fed montreal trade commission and other regulators. what has microsoft said about this deal and those other regulators >> the

obviously cma wants to be active in this area the ftc has been active in in a this area.king an injunction here in the u.s. this gives the ftc more time to pursue their claims. >> what do you make of the idea and there's a whole bunch of folks -- there was an op-ed in the the "new york times" recently -- about this idea that the u.s. regulatory system has either happily outsourced some of the regulatory regime to europe and other regulators outside of the united states or that they're all in cahoots together in a way that they should not be? >> there's certainly some signaling going on that we're, you know, with public statements and with actions and historical actions the u.s. regulators are saying to everybody else it's fine to go ahead and block these things, even if we can't so i think you're seeing more activity from european and from the u.k. regulators. in this case i think that microsoft and blizzard have put out a statement how encouraged they are but they were saying that about the cma discussions as well in the u.k >> what gives you hope, by the way, for that t

and so therefore, the cma thought that they shouldn't go ahead and approve this deal., and the eu for it to finally go through. so it's a big day today when it comes to this particular case, and the future of the games industry. well, joining me now to discuss this is keza macdonald, the video games editor at the guardian. that last point there, the regulatory bodies in the uk, the united states in the european union all have to agree to this deal. does this set a precedent than? i all have to agree to this deal. does this set a precedent than?- this set a precedent than? i think so, this is — this set a precedent than? i think so, this is the _ this set a precedent than? i think so, this is the second _ this set a precedent than? i think so, this is the second time - this set a precedent than? i think so, this is the second time the i this set a precedent than? i think i so, this is the second time the cma has stepped in and prevented facebook from buying the search engine give fee. so it puts in a position of power because all those regulatory bodies have to approve

i mean like i'm buying up a shot cmas or is it jim runjun, sim, gas or change? all right. it was in there was water i wanted locally, the energy costs were increasing, the gas prices are $8.00 times higher than before. all due material costs are increasing at least 34 percent sanctions, vitriol b. right now, in practice making companies like our company, we are 2025 employees, makes argile very, very difficult. i think it to be able to hurt a lot of small companies and i'm afraid that many of them would be forced to stop the production or to reduce to a minimum of level 10 small now senior started his business back in the early 1990 s for years his company is specialized in engineering and manufacturing like way past the components experience and the kind of a strategy. disregarding external factors. what does camp his company afloat over the years? absolutely unexpected. be heard that every young russian company won the target for negotiations for the appraisal. for egypt, it was the big chance for us to participate in this project. and it was quite well and we could reac

. >> i was surprised to learn that lena khan and the head of the cma had a meeting a week and a halfton legally, you're not supposed to be discussing active litigation. i don't know that they did, but you know, i think that that's what you're seeing now is that the cma is being used as a tool by the ftc to be able to create these kinds of outcomes, and this isn't the way that they're supposed to be operating >> so, pretty interesting comment there from mr. kotick in terms of saying, they're getting the cma to do their dirty work in a way they do share certain progressive perspective at both agencies at this point we, of course, will monitor this closely. there is generally a belief that this deal is not going to get to the finish line, that it's not quite all dead but almost. kotick doesn't share that or at least not publicly, certainly. he is, of course, under contract to be as positive as he possibly can in getting this deal done, and he certainly would never want to put in jeopardy his $3 billion break-up fee that activision is in line to get if and when the deal finally ends >> t

a lot is going to hang on that cma decision, and then we'll go over all the different scenarios fromooked even a couple months ago that this deal will get to the finish line but still some other potential things that we have to think about if the cma, as now, is expected or at least more likely than not gives the nod. >> look, the doctrine has changed here when i speak to ceos, offline, about the idea of mergers, they just say, look, let's just put that on hold the antipathy of this administration to mergers has made it so people are afraid david, i've got to tell you, the idea that this is really anti-competitive, i think, is ludicrous. we're in an era where people feel there were too many deals made, too many things that happened that were considered to be anti-competitive, and now everybody has to pay for that. you know these -- what's going to happen? is "call of duty" going to -- the price going to go up are there fewer game writers all of a sudden? i just think it's farcical but it is a shot across the bow for anybody who's considering in communications, anybody who's consideri

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that is something that activision and marcel has pushed back against and the key point to watch is the cma rejecting the markets desk office off -- the offer from microsoft and activision. we need to hear from microsoft and activision from what the next offering might be but the story for microsoft, the emphasis on the call is around ai and search gains but go back to the cloud. how is ai driving as your --a zure cloud sales? ed: you look at the fact that apple has not done big deals. maybe investors want to kick out cash the way they are and maybe they want to see that money coming back and big deals a distraction. great stuff. we will talk more. we will be talking with the robert bosch chairman. stefan hartung will talk about the big deal. i am looking forward to that conversation in a few minutes i'm -- time. >> we need to get more of the question of the day. is big tech too big to do big deals? ann berry, threadneedle partner and founder will be joining us next. this is wilbert. -- bloomberg. ♪ what do you see on the horizon? uncertainty? or opportunity. whatever you see, at pgim we ca

it is difficult to overturn a cma decision. they also have a long process in the u.s.ion in august against the ftc over this deal. i am not sure the deal can survive that. if activision is looking to be bought, the need to look for a company that is not as strong and clout. microsoft strength and clout was what was one of the uk's biggest problems here. it is not that activision cannot get itself sold to some other company, it is going to have to be a company that has less power in that area. jon: really helpful context, jennifer rie breaking it down. we will continue to watch the microsoft activision story. coming up, the new legal fight between disney and florida's governor, this is bloomberg. ♪ conventional thinking delivers conventional results. at allspring, we break away with purpose. harnessing data-driven insights and boundless curiosity. we dissect the market from every angle. helping to build portfolios that redefine what's possible. because investing isn't one size fits all. allspring. purposefully divergent. jon: this is bloomberg markets. we have been cove

linked to the tv to play microsoft is betting the gaming future on this cloud gaming area what the cmaying is it is still early days in cloud gaming if we let the deal go through, microsoft will have a substantial foothold in cloud gaming before the market takes off. that could hamper innovation that is why they blocked the deal microsoft will appeal. what does this mean for the others eu and ftc we know ftc under the leadership of lena kahn is scrutinizing the power. it is interesting to see how the regulators make a decision >> you saw activision take a step lower would microsoft shareholders like to see this go away or see the deal >> i think when they look at what with microsoft has done in gaming, it lagged peers like playstation and nintendo in the console market that is the traditional market if microsoft is going to be in gaming, and the future is cloud gaming, then this is the way to get ahead. they are looking at this and saying activision with huge titles they need good games for it to take off they are looking at the deal positively, but not looking positively at the regula

now, in responding to this inquiry ljy now, in responding to this inquiry by the cma, microsoft saidhose titles, they said they had put in place different processes which would keep the competition going, but the competition and markets authority is saying that is not the case. for now, alasdair _ saying that is not the case. for now, alasdair keane, thank you, it is good to get your thoughts. 0ur reporter there. is good to get your thoughts. 0ur reporterthere. let's is good to get your thoughts. 0ur reporter there. let's take you to the us. in the us, trading in shares of the struggling first republic bank have been temporarily suspended. the bank's stock fell by 39% percent earlier today to a record low, prompting the market authorities to intervene, citing volatility. this comes after news that hundreds of billions of dollars had been pulled from the firmament last month's panic. let's get the latest on this with our north america business correspondent michelle fleury who's in new york. what is going on cosmic shares have been suspended on and off today, further falls today, what

of the three regulators, cma was probably the most important. this could outright cancel it with no way to come back on it they can appeal it the appeal is always on technicalities, not the core deal we looked at five-year history couldn't find anyone that got reversed we think the deal is likely dead it will take time for activision and microsoft to admit it. >> what is activision worth as a stand alone company? >> if you give it a multiple on our estimate, $80 stock. there are some really big near-term catalysts. they're sitting on $13 billion of cash and they could easily do a buyback. they have the biggest game launching this year in june. that could push numbers higher you know, in the near term it's a very interesting stock here from probably 76 up to the mid 80s. >> i mean, microsoft, the biggest losers are activision share holders and the mergers and acquisitions hedge funds that will go short microsoft and long activision. you had microsoft rally so hard after earnings and this happens. they got a double whammy. >> wasn't buffet in acti

one way -- that's true and they have a really strong statement out against the cma.hing that's true is they're a healthy company. they beat the top and bottom lines. they still have plenty of room for growth they have a lot of cash on hand, something that bobby kodak as talked about to our friends on "squawk box. that's the key, the company will probably be just fine on its own and potential for mergers with another game studio we'll have to see >> that is what i was going to ask. broaden this out to big tech i'm not sure if they're in the mood to acquire. maybe it they need ai help that's where they would be looking. will they now feel as though there's a chill on any dealmaking because of this ruling >> i mean, i think every hyper scaler has to think that this is definitely a political decision there's not a lot of market like dynamics that you can justify blocking this transaction with but you know, people are worried about the future microsoft is likely going to dominate ai here, and ai is going to impact so many industries that are out there. it could end up dom

. >> cma there, we'll be talking about that for some time this is a company that relies on m&a advisoryapital market activity as well. >> stories. >> you don't have it. >> i'm not -- they're not in danger whatsoever. >> you get these companies that don't have a lot of work. >> how many ipos have we seen? >> nothing. >> j&j i thought they get it done because they truncated the road show. >> kenvoo. >> the spin. >> kenwood, kenmore, washing machine -- >> i would tsuassume we'll see in the marketplace it's not hostile for a new interest. >> interest rates are right. bring the deal look at pepsico flying, coca-cola, colegate, bring the deal right now bring it right now. you guys do drugs. i do stocks. >> it's friday they're not bringing the deal on friday. >> first republic. >> yeah. >> stocks are trading up. >> well, we'll talk about it some more. >> meantime moderate gains for the dow thanks in part to intel the biggest gainer stop trading with jim is coming up next. interesting piece. let me bring in my expert. mmm... so many scratches... oh those are from my car keys. such a rich histor

cma heading in our direction. what can be put in place ? can what can be put in place?place to protect that? what we all rely on now to survive many systems are actually a shield to actually protect them. for that, for instance, a lot of data systems , the severe critical systems, the severe critical data systems , if you are buried data systems, if you are buried inside mountains, that's why you have things like shade mountain with all the defence systems buned with all the defence systems buried under imagine such as for a nuclear attack it's for and burst . if you've got the cloud burst. if you've got the cloud some actually bury those underground and all they're actually in mountains again to keep them operational and that's because they would survive such an attack like that it could wear protective strange it would be surrounding it on the water. oddly enough, there's water. there is a great protection. so that's the protection things have done. there are some electronic systems which are the high protection the critical systems could but of course systems could b