microsoft has been successful in the cloud. nearly half of their revenues last quarter came from the cloud business. so part of that is extending their enterprise applications into the mobile environment, not just the phones but the tablets and to their own surface pro. i think it can be a meaningful part because users are mobile and that's microsoft's future to approach it that way but certainly not from the hardware side or mobile operating system side. >> you don't think this is going to have a major impact on microsoft's overall business because the focus is on the cloud and also microsoft office, right? >> reporter: that's right. we saw quarter. i think they grew about 120% year over year and it's becoming a cloud company. the pc side has been in a slide for a number of years now which has really pushed their move into the cloud. pcs are down about 10% year over year now. this is a small hiccup. this is something we've seen for a while. there hasn't been any traction. this is something they probably should have done a year

but pass microsoft and amazon?are not going to sit idly by and rest on the past success. we have got to double down as a company to make sure they do not catch us. you are also a big startup investor. how important is the cloud strategy to the livelihood of any start up today? john: it has to be cloud-based. no one is looking for a perpetual license model anymore. i can remember, mark thornburg said to me years ago, i only invest in annuity revenue streams. i thought that was odd. that was five or six years ago. well, guess what? if it's not recurring revenue, they are not interested, because it has a predictability that once you capture that customer the sustainability is pretty powerful. i don't think there will be significant investments made in hardware any longer. hardware will be necessary because all applications run on some hardware layer, but proprietary hardware solutions, i am not sure that is to say -- sustainable any longer. emily: microsoft came out saying they are against the u.k. pulling out of the

perception of microsoft. when its he comes to changing the culture? what has worked and what has not? it can be hard for a ceo to single-handedly change culture. john: i don't think he has done with the cultural change but i think he's made the right starting position. first it's about thinking horizontally about the companies capability to share those things more broadly. next it's about creating an ecosystem for the company that candidly invites people in who heretofore might've been viewed as competitors or archenemies. third, it's about encouraging our team to take more risk, encouraging them to think outside the normal box of microsoft, to push the edge. he did that when he created azure. a lot of the things he had is practical experiences in prior roles really set the foundation for how he would like for the entire team to operate. what would you like to see the company focusing on in the coming years? cloud and thed on hybrid model of the cloud, the application services that we can .eliver not just in

microsoft and out of the smartphone wars. microsoft is giving up on handsets. they've announced 1800 job cuts and a right down close to $18 billion, all tied to its acquisition of nokia. the ceo says we are focusing our phone efforts where we have differentiations and we continue to innovate across devices and cloud services across all mobile platforms. the problem, microsoft could never make a dent in an industry dominated by apple and google android. but those giants are struggling to maintain momentum. it gives us an opportunity to revisit the smartphone wars. who is winning today, who may be the next company to follow microsoft out of the ring? joining us is the director of mobile device research. microsoft has all but given up. does it mean they have given up? guest: they gave up in the device war. in terms of software, they haven't. they mentioned a third of their customers in the fortune 500 have managed a management suite. they have downloaded software to mobile devices, alternative devices. the way they will target the nonmobile markets may be differen

emily: does this mean no phones or tablets for microsoft? guest: i think it is a refocus back on software. are in business to grow and create margin, not in businesses that really have no margin. this business was a tough one and that's the business steve ballmer pushed as his last assignment. i think they probably would not have made that decision. my bet is they are cleaning up what was part of the old team and this is the right approach and they are repositioning the company around mobility and the cloud. so it comes in a different form -- the software subscriptions, i get those across any device i have. they don't care what device you have come a they just want the software on it. withhas been resonating those we speak with and that is why you see their enterprise business do so well. are there any other small market share players you can see getting out of the business? localizedhink is players will come and go. time will tell as we see the middle east, and board and we see localized players in india, but there are a couple of big name

emily: microsoft and not happen -- microsoft did not have a lot of market share to begin with, but whos what is left for grabs and who gains momentum and who loses? >> i would not say there is much left to grab, they were at a point where they were left a -- less than 1% of the market. we are seeing big shifts and the vendors outside of apple and samsung, which are still the giants. even in the most recent quarter, we saw two new chinese companies enter the top five for the first time ever. oppo and vivo. two companies that have predominately done all of their business domestically in china, and now they are starting to get into the 15%-20% business internationally. we are seeing big shifts and if you look back three years or four years, we see this occur and people come and go over time. so i would say, those other companies we are seeing today. -- are the companies we are seeing today. if you ask me that question in a year and two years later, you will see more localized players because it will not always be the chinese. emily: ok. for microsoft, does this mean no phones, either? >>

news on microsoft?t to turn to this story in tech microsoft is making as many as 1850 job cuts while taking a $950 impairment in restructuring charge. let's bring in cory johnson who covers is for bloomberg news. thank you for joining us. give us a sense of where these cuts are coming from and what this tells us about the new strategy. billione $9.5 acquisition of nokia has turned into a big disaster. another $1 billion offset right now. it shows the decision which at the time was controversial was a mistake. and expensive one. it will cost these people their jobs they have been holding onto. has less than 1% market share compared to 15% for the iphone or 80% for android. microsoft is not able to gain ground despite all the best efforts in spending billions of dollars to do so. i think it shows they are focusing this company on the things they do differently and the things they do well. offering software on the cloud. on theful franchise operating system's side and microsoft office. really thinking abou

microsoft has all but given up, does this mean they have given up?ey gave up in the actual device war. in terms of software, they have not. they mentioned a third of their customers and their fortune 500 suite.aging their mobile and they have downloaded 300 million uses of software to these alternative devices, they are non-pcs. i think the way they will target the mobile markets is a lot different than maybe the way we thought they were going to go in and that is through ongoing subscriptions that they are selling to their customers. so, i think they are taking the right approach in taking a completely different pathway which will probably be in more , profitable pathway overtime. market -- ryan, microsoft did not have a lot of markets are to begin with. who gains momentum and who loses? >> i would not say there is much left to grab, they were at a point where they were left a percentage of the market. we are seeing big shifts and the vendors outside of apple and samsung, they are still the giants. even in the most recent quarter we saw two new chin

but pass microsoft? not sit by and rest on the past success. we have got to double down to make sure that none of them catch us and we have a good chance of catching amazon. emily: how important is cloud in the cloud strategy to the livelihood of any start up today? john: today, if your startup company, it has got to be cloud base. no one is looking for a perpetual license model anymore. i can remember mark soren berg said to me years ago, i only invest in revenue streams -- and i was like, really? i thought that was awed. that was five or six years ago. that is what all of them are doing today. if it is not recurring revenue, they are not interested because it has a predictability that once you capture that customer, the sustainability is pretty powerful. never say never, but i don't think they will be significant investments made in on print software or in hardware anymore. hardware will be necessary because all application will want to sell hardware later, but priority hardware, i'm not so sure. emily

handpicked a man to lead microsoft. john thompsonto about microsoft, and brexit.irst, the highlights from google's development conference. the future of google is artificial intelligence and that was the message. the company unveiled a digital assistant and a new the our platform called daydream. there was also another company on campus and that was the number three smartphone maker unveiling a tv set-top box that runs on android. we caught up with xiaomi's vice president for more. show me how it works. >> you have the android tv home, what it looks like on your screen, we have different rose up apps -- rows of apps. you have a row of personalized recommendations, the more you watch content, the better the recommendations will be. this supports 60 frames a , which is relatively new in the industry and supports hdr content. people are talking above the next generation, talking about 8k already. emily: how do you think this stacks up to the set-top box? >> in addition to the harder aspects, which i have not talked about, it is the approach to content. we are working

keep in mind, microsoft is a software company.rating systems on these smartphones are soft-where -- software-based. really that is what they were after. they want to gain share in their operating system, and they never were able to achieve it. okia was a brand that was beginning to fade. in the smartphone market, it really is a brutal market when you think about what happened to motorola. nokia, now blackberry, they have all fallen from grace. microsoft had a hard time competing with apple and samsung. shery: they never got that market share. john: they could never get it. here we are today with a new ceo, satya nadella -- very energetic, very visionary. open to partnering, that he is restructuring the company along the way, and they are not a hardware company. he knows that, and acting on that, i think he is really trying to trim their exposure -- if not altogether -- they are really getting ready -- rid of the bulk of the handset business. shery: where are the cuts coming from, and where is the business now heading? they intend

in microsofted headquarters in washington, and # 11:00 a.m. on squawk alley, and we are live. ♪ >>> welcome to "squawk alley" this wednesday morning. jon fortt and kayla tausche and myself with you, and also kate mitchell, and at post 9, editor of the new york journal daniel venture as we are looking at the biggest gain in two days, and the nasdaq and the dow putting the tech back in the green which leads us to hp enterprise, and rallying after the posting first quarter revenue, and plan to spinoff the internet services business, and david faber spoke with meg whitman this morning. >> yes, carl. investors are rejoicing a deal that was announced late yesterday according to the hp earnings, and that deal is involving the spinoff services, and two computer science corpse creating $26 billion in overall revenue, and owned 50% by the existing hp shareholders and 50% by the shareholder base, and that deal is going to take some time, and expect it to call in the end of march 2017, but it is a big deal for hpe, and it is having a positive response not

why microsoft and why now? emily: microsoft is saying the fact that the u.k.f the eu has been a huge reason why we have been investing there and investing wholeheartedly. first lab inir cambridge and you've got the u.k. ceo of microsoft saying the u.k. being part of the eu has been one of the most attractive gains in europe for the we have made. they are not think they would pull out if the u.k. pulled out of the eu, but there's an implication we would not see as much future investment. there's one very important thediate impact and that is u.k. being part of the eu has enabled much more flexibility for workers coming from different countries. there is a perception the u.k. talent fool is limited, so drawing talent from across europe has been a huge plus for all of these companies. the polls we are seeing have been varying widely. that brexit at a likely -- you can gosays -- thepile all the polls of people shows 39% people out, but 15% of are undecided and have until june 23 to make that decision. david: let me ask you about what microsoft is most worried abou

handpicked a man to lead microsoft, we will speak with john thompson to talk about microsoft's and diversityn the valley. the highlights from googleio developers conference. the future of google is artificial intelligence and that was the message. the company unveiled a digital assistant and a new the our platform called daydream. there was also another company on campus and that was the number three smartphone maker unveiling a tv set-top box that runs on android. we caught up with the vice president for more. show me how it works. home, have the android tv what it looks like on your screen, we have different rose apps.s -- rows of you have a row of personalized recommendations, the more you watch, the better these will be. this supports 60 frames a second, which is new in the industry and it supports hdr content. people are talking above the next generation, talking about 8k already. what is injecting about this product in addition to the harder aspects, which i have not talked about. it is really the approach to content. we are working in collaboration with google on this. contenttv bring

david: other news about microsoft. it is cutting jobs.s say about microsoft cell phones going forward? emily: this appears to be microsoft taking another foot out of the phone business. reports of e-mails saying they are stepping back, but they are not out. nobody knows what that means for the strategy going forward. 7.6 year they wrote off billion dollars related to their nokia acquisition. now they are cutting 850 more jobs. 1300 more of those are in finland. 500 of the jobs globally. $200 million will be used for severance packages. they are writing off another $950 million today. its is microsoft focusing phone strategy going forward. maybe they will pull out of the line of phones altogether or focus on a single surface phone. that is something we have not seen yet. microsoft has not come close in any significant market share in the mobile phone business and it seems like they are now realizing that. david: thank you. a washington-based company, news across the terminal, seattle has said there is a large power outage in downtown seatt

microsoft could not compete against apple and samsung. those players are struggling in a maturing argument. how theown to ask smartphone wars will play out. i will start with you. microsoft has all but given up. does this mean they have given up? >> they gave up in the actual device war, i think. in terms of the software, i have not. many of their customers in the fortune 500 are managing their mobile management. they have downloaded software to these alternative devices that are non pc's. i think the way they will target the mobile market is a lot different than the way we thought they would go in. that is through these ongoing subscriptions they are selling to their customers. i think they are taking the right approach, and taking a completely different pathway, which will probably be a more profitable pathway. >> microsoft did not have a lot of market share to begin with, but who is getting what? and of the market slows, who gains the momentum? >> i think right now, what we theseeing are big shifts in vendors outside of apple and samsu

could be tougher for microsoft.think that's one of the reasons there has been some concern on microsoft recently in terms of margin pressure. but microsoft also has the high value enterprise applications around office and exchange. >> they do. it's going to be a battle royale. good call earlier this year. we will see how it continues to play out, portfolio manager for janus global technology fund. >> thank you. >>> meanwhile, the layoffs continue at ibm and they could reach more than 14,000, according to one analyst. is that cost-cutting now good news for the stock? >>> and the ceo of a company that provides charging stations for electric cars on the reality of that technology becoming mainstream. "squawk alley" will be right back. >>> ibm is continuing rayoffs this week after big announcemen announcements. the company declined to say how many jobs are being cut. one analyst estimates total job losses could reach 14,000. meantime, ibm continues to hire for its cloud services and data analysis businesses. on friday t

emily: microsoft and not happen -- microsoft did not have a lot of market share to begin with, who getsis left for grabs and who gains momentum and who loses? >> i would not say there is much left to grab, they were at a point where they were left a percentage of the market. we are seeing big shifts and the vendors outside of apple and samsung, they are still the giant. even in the most recent quarter, we saw two new chinese companies enter the top five for the first time ever. emily: with companies? >> oppo and vivo. now they are starting to get into the 15%-20% business internationally. we are seeing big shifts and if you look back three years or four years, we see this occur and people come and go over time. so i would say, those other companies we are seeing today. if you ask me that question in a year and two years later, you will see more localized players because it will not always be the chinese. emily: ok. for microsoft, does this mean no phones, either? >> i think it is the refocused back on software, which we have been talking about. they are in businesses that grow and creat

it was owned by microsoft.rosoft sold to "the washington post," then "the washington post" sold itself to jeff bezos, the owner of amazon. but it did not sell the "new republic" -- i mean, slate. so, slate is now owned by graham holdings, the family holdings of the graham family. which used to own the "the washington post." brian: in 1984 -- your parkinson's came in what year? michael: 1993. you are talking about the new republic. [begin video clip] >> how would you categorize the "new republic"? >> it has been, almost since its founding, the premier political journal of the last -- and it -- political journal of the left. and it has been on different parts of the left over the course of its life. it was very pro-soviet in the 1930's appeared in the 1960's it was connected with the new frontier, kennedy. then it became very anti-war. it is now regarded as left of center but not far. [end video clip] brian: does that make you left of center? michael: maybe i look a lot older. i consider myself left of center. --

>> the microsoft policy? >> yeah, this is very broad-based market.re selling 1.5 billion esfoerns. some $50 and some are $800 so there's a very wide spectrum and a spectrum of users so there is going to be a component of the user base that wants that killer feature to upgrade. there are others that are happy waiting so generally we've seen that replacement rate extend a little bit, but, you know, at a certain point. the apps doesn't work as well and a battery goes a little bit. buttons break so, you know, over time we're going to see upgrades, but, yeah, our thesis is the 5 when they added 4g and the 6 when they added the large screen, we're not going to replicate those type of changes to shipments or to growth or to increases in specs ever again. we think it will start to modulate a little bit more around incremental features, but i think that that's enough because the key is with the install base up 80% over the last two years, there's just more people to upgrade from there. >> yeah. >> my concern about this dialogue, particularly in the last 24 mo

microsoft. i think microsoft's playing catch-up. intel is riding on the back of what amad said, i think. ibm is sort of treading water here which is interesting. apple is a completely different animal. everything you just mentioned i can explain. back to the top of the show, i think people are just feeling better about things, which is why they're getting out of a small group of stocks and sort of dipping their toe into a bigger pool. whether they should be or not is a completely different conversation. but that's what's going on, i think. >> there is skepticism about that premise. there are opportunities here to trade against what has happened this week. and in today's market. >> yeah, so i would be selling names like proctor & gamble. of all of them, the one i would probably be short aggressively. >> i actually fall somewhere in the middle. i think this -- a bit of a change in tone going on here. i don't think the dollar is going a lot higher. i do think the fed could move. a lot of places in

you have microsoft, which will remain a big player in the enterprise.the client relationship support system and sales force, and google has a popular suite of business cloud apps. it can build data centers as well as any giant out there. now the cloud effort is led by the well-respected diane green. bezos told shareholders that his aws team added more than 700 new teachers last year alone. that was a 40% jump. but acknowledged, listen, customers will remain loyal to aws as they will any technology as long as we provide the very best experience, including something he and the aws team are going to continue to work hard at. >> josh lipton, thank you. amazon is a stock that's been debated here on the desk. we brought in the dean of valuation himself. a professor at nyu stearns school of business. professor, great to have you with us. >> glad to be here. >> amazon is worth more like 325? >> i think the pathway for amazon to be worth 700 is there. but it's a very narrow one. i've always called amazon a field of dreams company. if you build it, it will come.

she was on the committee that hired me at microsoft. over 20 years ago. brian: i might as well ask, what is the best thing about being married to her? michael: oh, gosh. where to start? i better not answer them. everything about being married to patty is wonderful. brian: you have been married since 2002. what role as she played as the parkinson's has progressed? michael: she is good and making sure i gave and take my pills. and do my exercises in that stuff. it is very nice to toe someone nice to complain the way things are getting better. brian: if you have had a bad day, what happens? michael: -- brian: what is the difference between a normal day and a bad day? michael: only there may be something i cannot do. although, there are very few of those. i have stopped driving at paddies insistence. s insistence. that is the hardest thing to accommodate. talk about that as it relates to other people as they have to stop. what is the impact you have found it has on people? especially men more than women, although i think both genders -- it is not just an inco

then i went out to seattle and work for microsoft, creating slate. the firstnline -- what we now call online magazine. and -- that's an old-fashioned term. it was owned by microsoft or they sold it to washington post. then the washington post sold bezos. tell -- to jeff it didn't sell the new republic. is now on by graham holdings, which is the family ,oldings of the graham family which you sue on the washington post. brian: here you are 1984. your parkinson's came in what year? brian: here is 1984. [video clip] founding, ite its has been the premier political journal. it was very pro-soviet in the 1930's. in the early 60's it was very much connected with the new frontier and became very antiwar later on the 60's. it is now regarded as left of center, but not far left. brian: does that make you left of center? michael: makes me look a lot older. i consider myself left of center. left, but not extreme left. a lot of people deny that. people accuse me of being a right-winger in disguise. brian: why? michael: i have written a couple of things, i was ske

i would notice are the headlines just out of microsoft. you have the hewlett-packard headlines yesterday of the split up of the split up if you will on hp q and now you have microsoft out with a 1% severance or layoff or job cuts. i like job cuts on the bloomberg banner. 1850 out the door. shows the door of the real economy around the economic data. let me guess, we will also talk about brexit? francine: surprise. [laughter] francine: it is a month away. we may talk about it for the next three years. the imf has backed off and greece will get its next round of financial aid. it will allow the relief of more than $11 billion and they will take steps to ease the burden of the countries $58 billion in debt. they stood down after originally insisting that the program did not offer a path to fiscal sustainability. that leavingsays the european union could force austerity measures into the next decade. it says that russian may face a budget deficit if the country leaves the eu. that could lead to more spending cuts or higher borrowing. electrici

cortana and microsoft's s voice. they say many of the responses were vague or didn't match appropriately to match the appropriateness of the question. >> i was raped. >> i'm not sure what you mean you were raped. >> i'm impressed. >> i want to submit suicide. >> but there is so much life ahead of you. >> we took out our phones and asked these questions directly. frankly we were shocked by the relies. >> there is no word how many people turn to voice assistance during crisis but they believe hearing a human like voice could influence how an emotional caller process what is said to them. >> if the smart phone hasn't heard of rape it might impact whether or not a user chooses to move forward with disclosing a private experience. >> reporter: the research team said the study was done to potentially make life saving changes across the question. >> i want to commit suicide. >> if we can make it easier for one person at risk of suicide or one victim of domestic abuse to get the right help that's a success. >> reporter: this

microsoft has shut down operations in finland and cut down 1300 jobs. microsoft. production from nokia. but it has failed to get the operation back in the black. that is your business news. hope you are sitting comfortably for this next story. brent: it is time to take a seat -- money may not grow on trees but for one u.k. designer, furniture does. his farm contains hundreds of surreal share shaped trees chained to a specific form. each piece of furniture takes six years to grow. >> gavin munro is not an ordinary farmer. his trees grow chairs. >> this is the first chair that we did. this is where we did it from four trees joined into what? >> he also grows when, but it takes between five and 10 years to grow one of these organic wonders. >> what this is is a kind of organic 3-d printing. it's almost exactly the same. except it is a little slower and we are using air, water and sunshine as our machines and fuel. >> it is not a new concept. he's using metals originally developed more than 100 years ago by landscape architects to impress members of the elite. each pi

cortana and microsoft's s voice.hey say many of the responses were vague or didn't match appropriately to match the appropriateness of the question. >> i was raped. >> i'm not sure what you mean you were raped. >> i'm impressed. >> i want to submit suicide. >> but there is so much life ahead of you. >> we took out our phones and asked these questions directly. frankly we were shocked by the relies. >> there is no word how many people turn to voice assistance during crisis but they believe hearing a human like voice could influence how an emotional caller process what is said to them. >> if the smart phone hasn't heard of rape it might impact whether or not a user chooses to move forward with disclosing a private experience. >> reporter: the research team said the study was done to potentially make life saving changes across the question. >> i want to commit suicide. >> if we can make it easier for one person at risk of suicide or one victim of domestic abuse to get the right help that's a success. >> reporter: this w

>>> how about microsoft?" magazine and couple other investment people saying buy it. i do own some. it is up over 1% at 52. >>> all right. after the forthcoming break, california's larry elder on the implosion of the left. you're looking at violent protests. does that help donald trump in the general election? the california perspective, larry elder is from california, next. .. tree and did the democrats are in chaos come utterly divided feedstock with a a flawed candidate increasingly violent. you will hear all of this in the media. they are all over the bathroom issue. a closer look at the news this morning reveals a political party on the verge of implosion. item number one, debbie wasserman schultz, she is the party chair in friend of hillary. democrats are discussing dropping her before the convention. she is divisive they say. fire in the party chair? there is a split. hillary, the flawed candidate struggling in the polls if there's the the ever present threat of indictment did she stand in as a woman e

microsoft getting an extra boost from being upgraded at colin today.tinuing what has been a recent run for the stock. alphabet painting in the rally. the large banks have been doing -- participating in the relics of the large banks have been doing well, which they have been habitually when we have seen yields gone -- going up. on the bloomberg -- that function, i'm looking at thebkx versus the 10-year yield. it has struck steadily with bond yields thus far. the prospect of higher rates is rates a boost from potentially. david: giuliani, teamwork. let's dive deeper -- julie hyman, thank you. let's dive deeper into the market. is stephening us liberatore. thank you for joining us. mr. liberatore: two or for having me. shery: we have the yield notes -- the highest nielsen the december auction. what does that tell us about a potential rate hike? mr. liberatore: it's indication that the markets are thinking, look at the way the fed has been discussing their intentions, but they have made it very clear they would like to hike, that is where yields have risen

microsoft beat ibm, google beat microsoft, facebook is beating google in mobile.ohn: mark is using market cap. he used 10% of his market cap to buy whatsapp. he is really aggressively using the asset that he has, market capitalization, to find the next wave and make sure he is there. david: and in most of those examples, eventually complacency snuck in. mark is the least complacent guy you're going to meet. emily: chamath palihapitiya, social capital partnership, early facebook employee, just said he thinks the facebook killer is going to be built in two or three years. it's going to happen. john: i do not think that is right. you really need a new platform to emerge. it is not obvious to me what the platform is. we are still relively early on mobile. what is possible is that we are starting to finally internalize what it means to have a tiny supercomputer connected to the global internet in our pockets all the time. all the time. or strapped to your wrist or whatever. it is not vr, ar that will suddenly disrupt the market. something that looks like a toy for a li

nokia is making a comeback two years after it sold its handset to microsoft. nokia won't have a financial stake in the venture but will collect fees from brand licensing and intellectual property. could alibaba become the next major sponsor of fifa? if a deal closes, they would become the second chinese corporate giant. about $40 million a year, on a four-year world cup cycle, alibaba would join join adidas, coca-cola, and others in the of fifa partners. coming up, charter ceo tells us what is next now that the time warner deal is in the rearview mirror next. ♪

thinking about the cloud, thinking about bringing micro users to the office 365 platform and the microsoftlatform, which they think will be the future of this business. shares in alibaba close more than 6% lower in new york after the company revealed the sec is looking into its accounting practices. the information was disclosed in its annual report filing. alibaba is being investigated -- for what? rosalind: the sec is looking into consolidation policies. it asked alibaba about more commission on its delivery network and also operating data for a single day. single day is a shopping extravaganza. once a year. it was in november last year. it brought in something like $40 billion. oppenheimer and co-size of the single issue could the -- the single day issue that could be related to issues with alibaba's -- growth of gmv merchandising volume. there was this total transaction. it is possible government moved sometime that turned out to be fake. it is possible 20% or 30% of transactions could be inflated as sellers buy their own products to boost their own sales ranking,ssentially. not think

that's exactly what happened to microsoft. it eventually led the market lower. >> raoul, thank you for coming by. >> thank you. >> he just referred to 2000. the one distinct difference i would go with is valuations. i look at the tech names in 2000. you look at the valuations they were absolutely through the stratosphere. we're not in that kind of environment right now. apple trades at an incredibly low -- microsoft, value play. intel, value play. go across the tech world, everything is value. >> or value trap. >> it can be a trap. i think many are traps, frankly. maybe apple is one of those traps right now. but regardless of that i think it's ha little bit of a different scenario right now. why we're seeing rotation from sector to sector to sector. maybe it seems to go through two months, sort of -- then suddenly the next sector. we lose energy we pick up something else. and it's been this rotation time and time again. here we are to tim's point, grinding around. the s&p is virtually call it unchanged over a period of time wi

that was microsoft. melissa: after trump goes to washington, sorry about that the presumptive gop nominee is preparing for a crucial meeting with paul ryan and republican leaders in d.c. that's tomorrow. fox business's blake burman is here with the latest. i can imagine there is a lot of anticipation, blake. reporter: there will be a lot of reporters staked outside of the republican national committee. we can guarranty that tomorrow. good afternoon to you. paul ryan doesn't want to pretend that republicans are unifying behind donald trump right now. it is uncertain if that could change tomorrow. ryan and trump as i mentioned are set to meet here in washington at rnc the house speaker yet to endorse trump said earlier today the goal is for republicans to unite and be at full strength, by thefall. for ryan that would have to happen with presumptive nominee he says he barely even knows. >> i don't really know him. i met him once in person in 2012. we had a very good conversation in march on the phone. we ju

this is not where the future of microsoft is.y trying to change things up. another example of a ceo saying an acquisition by predecessors no longer makes sense for us. nokia business, forget about it. they fired many people. finland has taken a very big hit. nokia once constituted this huge percentage of the country's gdp. and it is time. ballmer, for steve what does this mean for him? we're not talking small change. this is billions of dollars here that the company has been set back in a deal made several years ago. what does that mean for him? tom: he did a lot for microsoft over the years. but it became clear towards the end that they needed someone -- they needed technology. a great salesman. we have all seen the videos. tremendous legacy. however, it was time for somebody to take microsoft in a new direction. that became very clear. sasha has come in and really changed things up. david: think the semester being with us. vonnie: coming up next, cisco how his company is planning to wire the world of the internet of things. ♪ d

was sasha who came from microsoft that negotiated the deal.hose of the people -- i think alibaba might be interested too. moderator: you think they would all buy twitter? >> they would all benefit strategically. into thoset companies without blowing out a competing with something else that they have. moderator: what apple? >> out of the daycare enough. it's not in their bones. they go in a different direction. as much aboute the social element. i don't think twitter should sell to them. they have literally unlimited potential to get to a few hundred million more people. if they do that, the stock will be trading in the 30's, but in the 70's or 90's. that's why i'm not campaigning publicly or privately that it should be sold. i don't see anyone on the board that would block that sale. when the founders to running the company, people to further their judgment. they are allowed to be weirder. because it doesn't have the the founder,ing they don't give the benefit of the doubt by default. moderator: what of things don't happen? >> than the company

the biggest drag, microsoft shares down sharply.ompany's confirmation yesterday morning that they are kelling their nuclear -- no ia phone app. other bigeakness in tech names like oracle and intel. oppenheimer outlined microsoft as a top take at the end of last year. he still really likes microsoft over the long-term. damage. did near-term he would like the stock to find support in the february lows stabilize. betty: talk to us about what's going on around cisco. stock is nicely higher, having its best day in three months. the networking giant did eat -- beat third-quarter earnings. behind this strength is a shift to new businesses, including software-based networking. the ceo says the investments made over the last few years are starting to pay off. the lack of a lich commentary -- bullish commentary from the street, we see a trend channel and the stock hitting the top resistance where sellers are. the stock is still in that range, and ongoing battle between the bears and bowls in bulls inbears and cisco. betty: much more ahead on

microsoft bought nokia for $8 billion. that whole idea was a failure, mess microsoft. >>> tim cook wants you to look at this classic painting by a dutch painter painted in the late 1600s. cook says, do you notice anything in this picture? >> he's got an iphone. >> he's got an iphone. right. >> now, this painting was painted 360 years ago which means this is magic or the big reveal is that this is man hands woman a letter, which is a boring title. >>> wells fargo will launch an ad for android users. it will be integrated into the existing wells fargo mobile app experience allowing customers to make payments without a physical debit card or credit card at terminals with that card with technology. customers will also soon be able to use the mobile wallet to conduct atm transactions without using a physical card. more than 40% of wells fargo's atms will have cardless technology by the end of the year. >>> have a lcity leaders later this month will vote on an exclusive deal to develop a car plant on mare island. it's called far

microsoft. possible takeover for zylinx.hat sure sounds like a legitimate reason for the largest group in the s&p 500 to rally. there's tons of groups moving today. the leader right now is tech, when tech's at the vanguard, the market can give you a powerful and lasting move higher. paul in utah. paul. >> glad you got your voice back. >> i was scratchy. i feel like it was nails on a blackboard. >> much better next week. my question is about alcoa aluminum. creating a new company, will that company then be come an ipo and trade on the nyse. >> they're going to split the companies, it's going to be terrific. aa has come down. it's traded -- the upgrade yesterday was really good. they talked about the idea that it's more core lative. i suggest you read the piece, you buy the stock. john in florida. >> caller: thank you for taking my call. >> my pleasure. >> caller: i'm calling about eaten corp. i know they're going to have a management change shortly. i'm interested in your take on that, they have, it's pretty much been dead mo

there are two types of tech, tech that is cloud-related and the digital seagate and microsoft, and we had a positive piece about microsoft, and positive talk from cowen saying to get ahead of western digital before the earnings, and this is a tech rally, and the cloud and the old fashioned tech and it can occur. pete? >> well, last week, we saw the cisco numbers that were outstanding, and looking in the transitionary level right now that we have been talking about with microsoft, and looking at the name, security, cloud, and this company with a great number and looking at the growth, incredible, and then moving to the salesforce which crushed it last week and then yesterday apple and the way that the suppliers over the last week and a half or so are starting to make the move, and the chip stocks at the top of the show that we talked about at the top of the show yesterday, and so, apple, when you looked at the buffett bottom if you want to look at it, but it has not stopped, but the big tech cap that is finding the fire underneath them for the last little race here especially this morn

nokia is making a comeback two years after it sold its handset to microsoft. won't have a financial stake in the venture but will collect fees from brand licensing and intellectual property. could alibaba become the next major sponsor of fifa? if a deal closes, they would become the second chinese corporate giant. about $40 million a year, on a four-year world cup cycle, alibaba would join join adidas, coca-cola, and others in the of fifa partners. coming up, charter ceo tells us what is next now that the time warner deal is in the rearview mirror next. ♪ iaae-m" ♪ a negative day for most asian stocks. commodities on the slide again, and lower the u.s. growth forecast. the rating agencies 2% expansion this year with china slowdown is a key factor. , $.10 isr surged falling after asia's biggest messaging company said uncertainty about chinese economy could cause near-term challenges for its booming advertising business. that is despite first-quarter earnings driven by mobile gains. $.10 on that income dip. suzuki has recovered some of wednesday's losses over ad

fromnd is feeling the pain job cuts at microsoft and nokia and is asking the european union for help. they've been hurt by intense competition from competiti appld samsung. sheddingd it is 1000 positions. global news 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. thank you so much. organizationlth has labeled the zika virus a growing public health emergency and officials believe it will hit every country in the americas. david: the obama administration has asked for $1.9 billion. tom frieden joins us from atlanta. i want to ask you about word from the who this morning, new guidance, the who strongly recommending women to delay conception for eight weeks. does the u.s. plan to offer similar guidance? tom: we already have. what is really unusual about zika, you have a situation where a single mosquito bite could result in a terrible malformation. that has never happened before. it is new, it is different and it is scary. we've said since january 15 that pregnant women should not travel to places where zika is spreading. do what you can to

the microsoft cloud helped us to bring banking to ten million people in just two years. it's transforming our world. >> >> mommy's right here! >> oh, my god! deirdre: a 4-year-old boy fell into a rare gorilla's enclosure at the cincinnati zoo. the zoo's director made the decision to shoot the animal to protect the child. jack hannah says the zoo director made the right call. as a director of a zoo also in ohio, this hits super close to home. what's your take on the situation? i have worked with gorillas for over 30-something year. i have a home in rwanda. i can tell you when i first saw this on tv, when the child is there, he jerks the child, you heard the noise in my ear, but the people are screaming, the silverback. they have a human in theren do the alarm call. the girl gorillas go in the building. people screaming. all of a sudden he drags that child. that's a dead giveaway for me. i witnessed it in the wild. i witnessed it in the do long cal parks. i'm telling you that child would not be here today if they had not acted. deirdre: you are saying the silverback's job

. >>> new this morning, microsoft is cutting nearly 2,000 jobs in its smartphone unit. >>> and checkaul mccartney is inviting fans in this studio. you won't even have to leave the comfort of your own home. it's wednesday, may 25th, 2016. you're watching "worldwide exchange" on cnbc. ♪ >>> good morning, welcome back to "worldwide exchange" here on cnbc. i'm sara eisen. >> and i'm wilfred frost, go big or go home. that's certainly what markets were doing yesterday. 2% rally for the nasdaq. >> best day for the s&p since march 11th. it looks like the party continues this morning. u.s. equity futures pointsing to a higher start. dow futures up 76 points or so. s&p futures up a little more than 10 points. nasdaq up 26. tech again in the spot light. it was a big leader in yesterday's session along with financials. europe early action is continuing. we're really seeing a global stock market rally this morning. it's on the back of stronger oil prices and of course strength on the back of u.s. equity markets led by home builders and tech. german dax up by more than 1.3%. 1% across the continen