cory johnson sat down with and the virgin sports ceo at an event in san francisco.ranson said he may get back into the u.s. airline business months after alaska airlines said it would dump the virgin america brand. branson has tussled recently with alaska about how long they will pay royalties to use the virgin name. alaska merged with virgin late last year and this march said it plans to retire the brand in 2019. richard: they have said that they will continue to use virgin america for another 18 months or something like that and then they will merge all of the planes into one brand, alaska airlines. cory: don't they have a responsibility to continue to pay virgin for the duration of that contract? until 2030, they carry on paying royalties. unless we decide to start another airline. we will see what happens. cory: is that something you would be willing to do? richard: watch this space. a stopover mohave. let me ask you about the space business. looks like you are making great rye grass there. what is the status of that business? richard: we are having a really our

isning us with more bloomberg editor-at-large cory johnson. has he done with his ibm investment -- not that he ever really lets at returns, right, because he typically holds something ever. but not this case. cory: this was a stock trade that did not work out for him. he talked about it glowingly in the annual letter every year. we can see the holders in berkshire, this great little chart -- you click on the holding and see how he did. you see his position growing as the stock is rising. he is adding to his position. start adding even more. fundamentally, it was a trade that did not work out for him. vonnie: nothing for a game to worry about, they could completely ignore it -- naahhh -- cory: buffett has said things about technology sort of suggesting he doesn't get technology. what we saw with ibm is a company that was just not growing. it is a company that was changing -- ibm announces strategy of a big shift to go from selling a lot of low-margin products to fewer high-margin products. what we saw every year, sales are going down. as the sal

vonnie: that's cory johnson in san francisco. ♪

cory johnson joins us. grateful.e does this mean that facebook can bring this back. left because videoers were annoying. >> for all the human cry about videos, google also not impacted by the complaints about youtube. youtube.was on -- everything is working at facebook. user growth is such an impressive number. closing in on two billion users. which is amazing. user growth slowed down to three percent six quarters ago. picked up.steadily impressive. we are seeing a slight deceleration in sales. 49%. growing i think facebook has got some control over this number. a sense ofally have how much their putting instagram much they can use. >> they're phenomenally with marketers. >> what we're seeing advertisers increasing too dominant company in advertising. and morers paying more for facebook users. in the first quarter, we saw not super strong numbers, growing 49% year over year big business, but the value of each user. how much sales for each user on platform. it's steadily going up. >> do you think any threat. coming in any company ofeating levels and amount things adve

cory johnson joins us from san francisco with more. pro is a product by all accounts. cory: they want it always is. this is been an interesting success for microsoft. when it first launched, it was a real disaster. they pushed it aggressively. we found that many of the services were removed. when they talk about products wereinventory, they wil not sold to consumers. over time this has become successful through a giant marketing effort by microsoft. --is a $2 million a year billion dollars a year product. vonnie: microsoft, when you think about primarily of software company, how important is hardware to microsoft? how: i think this shows you hard their job is. they are threading the needle with historic efforts, including massive failures, as well as trying to turn the business to areas with your success and greater margins. hardware margins will never be the same as software margins. took an $8 billion right off from that acquisition. that is a massive screwup by microsoft. they are stuck with this effort in hardware. hadcan see a comp

vonnie: cory johnson, editor at large and san francisco.comeback trail after managing outside money. what he is doing now. interviewxclusive with former hedge fund manager phil falcone in the 1:00 p.m. hour. this is bloomberg. ♪ vonnie: this is "bloomberg markets." i am vonnie quinn. planning his comeback. fromund manager was barred managing funds after security fraud in 2013. that is almost over. he has plans to return to the industry. joins us withli more. it is almost like waiting for someone to come out of jail. certain years, only a amount of money he can manage, and now he is as passionate as he always was. how do you hold that passion to manage other people's money again? fabio: he only turned around 1% last year, and if you go back far enough he compounds on the order of 25%. the 1% does bother him in so far as they had government regulators and there. family money, the question of motivation must be an issue when the emily money he is running is $10 million of his own money. why do you have to go to work? you are six years old. von

joining me to talk about the ecosystem here in the city is cory johnson. talk from marty walsh. on you hearing it replicated your radio show? >> the move of the technology industry from massachusetts to silicon valley happened a long time ago and there are a lot of companies to talk about here. i think that the move of ge coincided with us being here today and everybody has the talking about the big move of ge doubling down as they change as a company. it is the sign of boston coming back and the internet businesses in the startup scene here. there are some of the tools that silicon valley has. great academic institutions, a financial community, and you can look at the success of silicon valley and how they want to get it back here. >> i have heard from the president of harvard and marty walsh, the mayor of austin, the concerns about immigration -- the mayor of boston, the concerns about immigration. >> you can expect boston and the people of massachusetts to fight hard against a republican administration. there is a sense of a business the democratic mayor working with the repu

emily: cory johnson, our editor at large, thank you.ys says systems are up and running after a computer meltdown over the weekend snarled flights oliver europe. nearly 600 flights were canceled affecting 75,000 passengers. -- the chaoscop may cost millions. they will hold an investigation to get to the bottom of what happened. coming up, the electric carmaker has been growing in fits and starts for years, but could the chevy volt either tipping point industry? one analyst ripped up the car to find out. we'll hear from him next. this is bloomberg. ♪ vietnam mason have its first technology company go public in the united states. developers and investors signed a memorandum of understanding to list on the nasdaq. they declined to disclose the time in our size of the ipo. they have shipped to more than 230 companies. they have a rise of as much as 70% in shares from last year. ahead of the anticipated release of the tesla model three, the auto team at ubs got a hold of the newest competitor, the chevy volt. not only did they buy the car, bu

we are joined by cory johnson. fundgives him the biggest in all of tech. what does that mean? ry: the biggest fund in all of tech. it is sort of hard to imagine how such a fund at $93 billion can be effectively used. startups require less cash outside the world of biotech. they will require less cash in the early days of funding. just finding, let alone nurturing those deals will be hard to do. it is not all cash going into the fund. there is a stake in an executive fund that is part of the contribution to this fund. giant fund, it is a that will probably be hard to manage. emily: there has been a lot of speculation about why it took so long. what do we know about that? giantcory: i have been hearing0 billion for a long time. they beat me to it. it is all relative. i think raising the largest venture capital fund in the history of finance is an amazing feat, especially given the track record of these guys as softbank who work at and suffering has nurtured many companies. -- softbank has nurtured many companies. i think the announcement or maybe premature. the goal is astronomic

also, our editor at-large, cory johnson. is there a bitcoin bubble?e seen really fast growth in bitcoin recently. this is an uptick coming from an industry that hasn't been moving as aggressively in the public radar. now that a lot of growth in prices is more closely tracking fundamentals, i think we are seeing a big uptick for that reason. emily: some people say bitcoin is like gold, a finite resource, and therefore not as interesting. what's your take? cory: i think gold is fascinating, personally. it is true that the way bitcoin is constructed is meant to be finite. it is harder and harder to mint coins as there are more and more out there. the scarcity value is an important part of the bitcoin plan. it has been from the beginning. for people in the bitcoin community, they see all this investment and excitement. they cannot believe there parents don't understand what they are doing. so when they see the price surge they can see as a validation as , what they've been working on. there's an element of a gold like fervent belief and rapid speculation.

joining me to talk about the ecosystem here in the city is cory johnson. ting talk from marty walsh. are you hearing it replicated on your radio show? cory: the move of the technology industry from massachusetts to silicon valley happened a long time ago, and there are a lot of companies to talk about here. i think that the move of ge , i love that it happened to coincide with us being here today. everyone was talking last year this event and this year, looking at ge's big move doubling down. it is the sign of boston coming back in a big way, not just the internet business, but the startup scene here. there are some of the tools that silicon valley has. great academic institutions, a financial community to back things. i think they look at the success of silicon valley and they're trying to figure out how to get it back here. caroline: >> i have heard from the president of harvard and marty walsh, the mayor of boston, the concerns about immigration. cory: you can expect boston and the people of massachusetts to fight hard against any republican administrati

we are joined by editor at large cory johnson. pacts of this on small businesses. what are you finding? cory: small businesses are the perfect target for ransomware. they are businesses that rely on their computer systems and payment systems, they rely on the data that they gather and use in their day-to-day lives, but they don't have a massive i.t. budget that will keep them updated in security updates and the i.t. staff to track down these problems. they are the most likely to pay. ibm did an interesting study that was released earlier this year, and they found that 70% of the business executives who have been targeted by ransomware were willing to pay, and with 50% of them paying over on each $40,000 occasion. over $40,000,ying so the fact that so many of these victims are willing to pay up shows you why they are the perfect target. figuredo the math and 200,000 were affected, 70% payout, but it is only $300, that would be a $42 million payout for the criminals. that is the kind of payout these guys are used to inflicting. emily

joining us is "bloomberg technology," editor at large cory johnson. vid kirkpatrick in washington dc. david, you are in on the party. we will make sure to include you. what is going on with infosys? cory: politics. this is about politics. this is an attempt for emphasis, one of the largest consumers of h-1b visas, to get themselves on the right side of the story. it has been going on for quite some time.as one of the reasons president trump was able to become president, capturing this notion of something gone awry with the american workforce. infosys is a principal offender. people in the far right media are calling them out as a company stealing american jobs it's no accident. . with 10,000 people being hired in hubs, especially in indiana, that is a place where president trump won and vice president pence health from. they want to make -- hails from. they want to make a mark for that reason. emily: i know you are looking at the numbers at other companies affected by the policy changes. cory: outsourcing firms are big consumers of h-1b visas. there ar

bloomberg editor at large, cory johnson, joins us now from boston with more. chnique in boston. shares are down, but still trading above the i.p.o. price. should we be too concerned? cory: barely. barely. obviously, lot of comparisons were made to twitter, which also sort of did a face plant after its first quarter. but i think useful to really look at the numbers and really get a better understanding of the dynamic affecting snap that the's business and seeing how it's different than twitter and everything else. what you see when you look at the daily active users numbers is they just aren't growing that much, and while this company had fantastic growth in the last couple of quarters and years, that growth has really slowed down. the numbers that we saw leading up to the i.p.o. didn't get better despite the publicity, you know, that may have gone ahead with this and may have helped bring people to the platform. you would have hoped as much. on a percentage basis, you saw a dramatic slowdown from double digit growth up until three quarters, but right on the i.p

joining us to discuss the large swings is cory johnson from san francisco.f wild swings, i'm looking at my bloomberg. type in 8660. you will see it has doubled the price of gold. it was only a month ago they were about the same price as gold, back in march and april. now almost double. talk us through it. cory: we have seen tremendous speculation about the value of bitcoin with the price surging like that. it is to matter when compared to gold. -- it is dramatic when compared to gold. some people on the margins see it as something that might offer some stability. it is quite the opposite. we showed the five-day chart. you saw this tremendous volatility in the course of one hour's trading on thursday, you saw bitcoin value fall 15% in less than one hour. the next morning, there were a couple of trades even lower where you saw a 21% swing in the course of less than 100 minutes of trading. 21%. the motion -- the notion of this is a reserve currency or safety is bonkers because of volatility. of late, there has been a great transfer of wealth into bitcoin as you

we have cory johnson, howard linson, cory, what is your big takeaway?a decline in revenue for apple, seems amazing. revenue, last in quarter, the just announced here, looks like numbers -- as they get toward a new iphone launch in the fall, there's concern that the information about that comes out -- consumers with slowdown in sales. we've this happen a little bit not as much. howard, slight misses, slight declines. still this company is a juggernaut outperforming once again. does this change the story? howard: i voted forever. it is an amazing run. if you look like 3-4 years, prior to that. stock but them in the 90's by your tim cook peak on -- google trend. concoct hit all-time low on google trends. is a humongous company. they're too big to stop. i am not ceo stock -- in will kill me. julia: we will correct your title. atie: when you are looking these numbers, i'm also seeing gross margin between -- corey, traditionally, one of the attractive things about apple has been high gross margin. if that story changing at all? cory: interesting is the busine

caroline: that was forrester research director melissa parish and bloomberg editor-at-large cory johnsonalphabet also out with earnings this week. they came on the heels of alphabet's stock seeing record highs in trading. we dug into the report with harry kargman, ceo of kargo, and mike bailey, the director of research. take a listen. mike: we were surprised the stock is not up more. the earnings beat by about 4%, the stock is up 4%, so investors are treating this as the same company it was before the earnings came out. i think that in our minds, this is a higher-quality company, and investors are not showing that in terms of rising sentiment. we are still as confident in alphabet as we were before the earnings came out. caroline: so mike is confident. harry, i want to get your point of view here because i have been speaking to an executive and asking, look, what about the you tube controversy surrounding the backlash from advertisers, the slowing down of wanting to link yourself with certain videos? they said this would be a modest effect in the medium-term. in the longer term, we might

cory johnson, bloomberg editor at large.have you back soon to talk about this topic. percent of business executives paid up. how many of those were asked to pay in bitcoin? i think that is pretty prohibitive. joe: some of the experts at the bloomberg news reporter have said that some of the slow payment is due to the fact that bitcoin is difficult. the french president and the german chancellor met in berlin today. one day after emmanuel macron's inauguration. we will discuss the political , set for the two countries next. this is bloomberg. ♪ president hadnch his first official meeting with the german chancellor, angela merkel. the two leaders hoping to reset the relationship between the two countries. our reporter filed this report from berlin. the most one of anticipated meetings on the european calendar of the year. emmanuel macron rolling up to be chancellery in berlin to received by angela merkel, the de facto leader of europe who has been in office for almost 12 years. there were cheers from the background of the chan

emily: cory johnson, we will continue to watch this ransomware attack and bring you any updates.al assistance are the popular kids on the block from amazon to google home. another startup wants to be part of the in-crowd. there is an interactive assistant that leverages deep learning to keep residents connected to their homes while away. they have support from teck -- ywargetse -- from teck ech heavywaringts. describe how the technology works. it is amazon's aelectiona technology. your company keeps you connected to your home while in the outside world. >> it's the combination of deep sensing and learning and makes it possible to understand what is what in the environment, that's a child, a dog, a person, a mother. lets us behave intelligently. you can literally say, hey, lighthouse, let me know when you see someone at the front door with a dog. emily: even though the connected home sounds great, it sounds like very few people have connected to their home because it is very difficult. what point does it become mainstream behavior? >> there are millions of home cameras out there a

and cory johnson is with me. cory: continued growth of self's first.he numbers are kind of big ten. -- kind of baked in. his may bent to see deferred revenues will start to grow faster than revenues grew, suggesting things will get better. it is growing at about the same pace, growing about 24% on a year-over-year basis, which is really good but slower than it has been in years past. emily: so can they sustain it? cory: and what are they doing to sustain it? it is growing fantastically. the company lost money in the quarter, actually a lot of money in the quarter. but it is important to look at the fact that they have done billions of dollars and acquisitions. yet growth is coming slower, my duet a fantastic pace for a very big company, but much slower than it used to be, even though they spent billions of dollars to aid in that growth. emily: david, we have to talk about the threat from microsoft increasingly stepping on salesforce's turf. how well-positioned are they to defend himself? >> microsoft is a formidable competitor anyone. but i do not thin

for more i bring in cory johnson in new york. what is your read on this? : the fundamentals of ibm are not the kind he likes. he is not afraid to step into a business to turn around and make progress. if you look at ibm's progress -- his first purchase was of a lower-level. he bought a lot of stock when it was at its all-time highs in 2012 and 2013. it has been a money losing position for warren buffett, a difficult one. the corporate results reflect a business that is contracting, not growing, which is what buffett wants. emily: how much has he lost? cory: we do not know what he has paid for the stake itself. fundamentally, it is a reflection of ibm's business. if you look at the sales figures, they have been drinking every year. they wanted to grow the bottom line. but if you look at the even audit growth, there is not been any. it has been falling 5%, 7%, 11%. it is not only getting worse, but worse faster. that is a great concern and not the type of business he wants to be involved in. emily: buffett said in the past he does not understand technology. h

joining us in san francisco is a communications analyst and cory johnson. it has been too long, great to see you both. let's kick it off. carson block, i am looking at the bloomberg function. 35 million is the short interest out of snap, 14% of the equity float. much more than facebook but twitter has got double that, 63 million. let's face it. carson block would not be the only one with a short interest in the stock. what do you think? cory: i think that, first of all, the size of the short, 15% is a lot but let's keep in mind the stock has come off quite a bit. a lot of people may have been short the stock earlier in taken r and might have taken their money and run. i think that carson's right to look at some sort of fundamental problems in the business model of snap, some things that were looking like they're getting better leading to the ipo and allowed optimistic business analysts to look at the model and say, things are getting better. their first quarter got worse and that is disconcerting. it is not just the user numbers. the user number growth has

cory johnson sat down with branson.out the difficulties of the transaction and signaled something bigger on the horizon. >> they have said they will continue to use virgin america for another 18 months or something like that. and then they are going to merge all of the planes into one brand, alaska airlines. cory: don't they have a responsibility to continue to pay virgin for the duration of the contract? >> until 2030, they carry on paying royalties. unless we decide to start another airline. we will see what happens. cory: is that something you would be willing to do? >> watch this space. emily: we are continuing to monitor the story about a possible security breach on american airlines flight anyone. that flight from l.a. to honolulu has landed safely according to an airline with virgin galactic, the test program is going really well. we are as confident as we have ever been. emily: a story we are watching musically. an app is in talks with media companies including viacom and nbc universal to make original programmi

cory johnson joins us from san francisco. what can he do? cory: what has he done before? interesting move for this company that has seen such a revolving door of senior executives a company that is not quite in crisis but is certainly struggling to get better and get bigger. maybe biz stone can have success were others have not -- where others have not. this is a company that has a part-time ceo in jack dorsey could probably use some help. scarlet: we spoke with biz stone last year. he told emily chang that he has confidence in jack dorsey but also cautioned that turning around twitter would take some time. >> i don't follow the small ups and downs. i don't look at the stock on a quarterly basis. i think great leadership thinks in terms of decades, not quarters. i'm just waiting this out. in the grand scheme of things, jack is just getting the job, basically a year. that is nothing. scarlet: should we speculate further and question whether jack dorsey will remain in this job? cory: anytime you have a part-time ceo, you want to wonder what will happen long-term for the com

we heard from cory johnson, here's what he had to say, new york city councilman. >> are this is a horribleident. in may be the most densely populated area. not just in the city of new york, but everywhere in the united states. so for this to happen here today, the young woman to lose her life forks dozen, for dozen injured, a horrific day. >> reporter: both the mayor and police commissioner said immediately their mind went to terrorism because of where it happened, but again, they say now they believe this was an accident and they are looking at dwi as perhaps the leading cause. .driver according to police appeared to be under the influence. he is now being tested in police custody. >> kristen dahlgren, thank you very much. eugene o'donnell is professor of law and police studies at the john j. college of criminal justice and he joins me now. also former nypd officer. thank you very much for joining us. certainly is scare write situation. immediately people's minds jumped to terrorism, but dwi, lot of folks kill people because they are driving under the influence. >> and this looks purposef

let's begin cory johnson, the editor at large, who joins us from san francisco.ing like the nintendo catalyzing both companies and their stock price, do we presume the effect will be limited to one quarter of two quarters, then things go back? with nintendo that would normally be the case. nintendo tends to be very close to all the games and counsel units or the games made by nintendo. the tale of game sales into a successful consul was not so great with a nintendo device. but the switch has opened up to lots of developers. there were rumors that blizzard will move call of duty onto the platform. they have allowed for sharing of content on the nintendo network. the veryf highlights successful new platform that will also have longer term results with software on the systems. you saw in the gamestop results that software results were not ,ood, down 8% year-over-year because the other consuls have been going down, xbox and playstation. but the others were up 21st percent -- 25% year-over-year. it might be good for gamestop going forward. the sales number did not see