i do think microsoft is out.or it but to your point, there's money sloshing around and part of this, you know, zero interest rate policy allowed companies to make moves like we are seeing. that's what's going on. and i know am trying to find out the microsoft numbers for you. >> josh lipton, right now, sharyls are popping. what can you tell us? >> so, kelly, get you those numbers. microsoft reporting eps of 69 cents. kelly, the street looking for 58 cents on revenue. 22.64 billion. the street forecast 22.1 billion. just looking to the different segments quickly, kelly, cloud grew 7% to 6.7 billion. just looking under the hood, it looks like azure revenue jumped. personal computing, the flagship windows operating system, declined 4% to 8.9 billion. and then finally, segment includes office software, looks like revenue there grew 5% to 7 billion. going to keep combing through the release, kelly, bringing you more numbers. back to you. >> shares up a little bit more than 4%. what do you think, jon? >> good quarter.

let's start with microsoft.night, microsoft delivered a quarter with 1 huchb% growth in its cloud big but saw better than expected numbers. the company took pains to talk about how good the personal computer business is. said it was selling better than expected levels in the developed world. now i believe that the ceo of microsoft is back on track. after stumbling the previous quarter. that's why this huge stock soared. what's more relevant is you can't see this kind of stock unless you have an economic tailwind going for you, both here and worldwide. in other words, we may be breaking out of the prison of anemic revenue and corporate profit lines that have made the valuations of companies look steeper than they are, it's all good news. second instance? illinois tours. here's one of your basic industrial companies. it has a lot of cyclical parts to it. it can grow without a strong economy, so it won't blow up on a quick slow down. the maker of industrial fluids among other products reported sharply better than e

internet will run on microsoft's cloud. that's not exclusive. it was already available on amazon's cloud and/or ra on ora cloud. now microsoft has the opportunity to use that to build up their overall enterprise adoption of the cloud. from ge's perspective, predix is the center piece of the strategy which yields $5 billion in revenue last year. the digital strategy. they are expecting by 2020 it could yield $15 billion in revenue from ge digital. this is important to them. microsoft wants to work with ge not just to bring predix but to build in hooks to office 365, dynamics, cortana, microsoft's other cloud offerings so the industrial partners ge works with on this digital project go over to spend more money on microsoft's cloud. i will sit down with satya and jeff in an hour. dig into those and other important issues. from what's happening overseas. the macro environment, ge capital no longer designated as systemically important financial institution. lots of changes. they have opinions on globalization. the challenges bus

we think microsoft is a close second. we'd like to see microsoft pick up the pace a little more.s. we think there's a handful of acquisitions they can do that are really important. linked in is critical. they have to nail this. this is their biggest deal they've done. three times larger than the last acquisition. and clearly there's no overlap with linked in. they are the largest professional data graph out there. we think there's some great things microsoft can do. but again, it does continue to be skeptical given the failure of large acquisitions that microsoft has had in the past. they've not been a good acquirer of big assets. this is the first big deal under nadella. he understands what it takes to preserve the culture of linked in and create synergies so he doesn't rock the boat as he brings in the linked in employee base. early on the strategy looks good. we'll see if they can execute it. >> to that end, the company is now going to be focused on digesting that massive linked in acquisition as brent just mentioned. its p/e ratio is 43 times. and the stock is up 20% in the l

a lot of people played microsoft long side into earnings. but cisco specifically sets up interesting to me on the long side in earnings next month. >> well, i liked google this year. i think that the thing i like about google and facebook which i'm long is the brexit situation didn't have much effect on their business and shouldn't have much effect on their business. >> you're talking gross. it's a different take to the conversation we had here. >> definitely. that's a risk that i find more attractive. apple i've been long and really has not had a stellar year at all. but i'm going to happening on to google. maybe i'll think about pete's, sell some upside calls. i don't like stock replacement because then i have a gain. >> yesterday we talked about why the market can go higher. i would not say that you should be a buyer at these levels because i'm still really 70 to 75% in cash. i'm placing my bets, i'm shrinking the size of my holdings. i still am out of disney and apple. i got into j.c. penney. >> why are you 75% in cash? >> because i thin

we have microsoft reporting earnings. the fourth quarter adjusted earnings of $.69, topping consensus estimate of $.58, higher than the most bullish estimate compiled by analysts. 60 nine cents for adjusted earnings per share. when it comes to revenue, $22.6 billion, also higher than analysts looking for, which was $21.1 billion. coming in at $6.22 billion, and that is better than what was expected. microsoft, the story here is the ceo transferring just transforming the company from old-school software to a vibrant cloud services company. competing against the lots of salesforce -- likes of salesforce. this past quarter, we got news microsoft bought links in. -- linkedin. the deal has not yet closed. oliver: the news is being absorbed well. observers pushing $55, close around $53. a few dollars jump there. apparently something they are liking. scarlet: intelligent cloud revenue, this is the part of the business every one is excited about, $2.19 billion for revenue there. the consensus was $6.58 billion. if i looking at th

microsoft and morgan stanley. both of them bouncebacks and i think it's one of the great things the late andy grove talked about the 90-day period and what can happen in 90 days. take a look at what gorman and na dell did and this is a reasonable period. >> fixed income has proved to be a good area for this quarter for the financial institutions that reported earnings and we've heard from all of the big guys at least. they've cut 25% of their staff earlier this year at morgan stanley. people may forget, they had a significant layoff there. part of, of course, cutting expenses. they're still focused on cutting another $1 billion by 2017. >> i know. i didn't think it was -- to me it says they were fatter than i thought. >> in expenses. >> what's most interesting, david, i've been on these devgss, work on the fixed income desk and looks like there's way too many people and then a big chunk of business that comes in and it wasn't like they had to turn it away. they didn't have enough people. they were overstaffed. i t

microsoft's quarter was powered by the new cloud business. and not by the product it may be guess kn windows. the ceo has shifted the focus amid the slowing pc sales. the dow component earned 69 cents a share, a full 11 cents better than estimates. revenue also topped expectation although annual revenue fell n since 2009.cal 2015. still investors liked what they saw, sending shares higher in initial after hotrading. josh lipton has more. >> reporter: $6.7 billion that was the big number in microsoft atest earni reported for its so-called intelligent cloud segment. kurt mctern of evercore whd tha important because this is a critical part of microsoft's strategy going forward. it was also weaker than expected in the third quarter so investors wanded to see this -- wanted to see this bounce back. he notes that revenue from ajer, the cloud computing platform surged 102%. meanwhile, operating margins came in better than expected at 27%, and he says that microsoft is capably bouncing, investing beat got results from th expectations. goldman sachs,

your golf caddy is blaming microsoft, microsoft shapes. [ laughter ] now i can see why 13% of people chose death by meteor for president. [ laughter ] here to tell us more about this situation, please welcome retired microsoft office assistant clippy! [ cheers and applause ] hey, clippy. we haven't seen you in a while. >> i see you want to begin a chat. >> larry: oh, well, well, yeah. that's kind of why you're here. so, clippy, the trump campaign is chalking this whole thing up to the default microsoft shapes, but that seems absurd. right? >> it looks like you want to know more about my default shapes. [ laughter ] >> larry: yeah, actually. i mean, that would be very helpful. thank you, clippy. >> do you want to create a circle? >> larry: no. do you want to create a square? >> larry: no. i wanted to talk about the -- >> do you want to create a jew star? >> larry: whoa! [ laughter ] hold on. oh! oh, my gosh. so it is a default microsoft shape. but, wait, did you really just call that a jew star? [ laughter ] clippy, that's awful. >> oh, it looks like you find the jews awful. >> larry:

but i asked microsoft's ceo what is in it for microsoft?ere's what he said. >> the way we always thought about our partnerships is what are the companies that are innovating in software? building solutions that we can partner as a platform provider? in the past it was about tech companies. ge is a digital company building digital software. so they'll continue to be a parter in and ge will be in the same class. >> and beyond that we also talked about nationalism. protection i feel. what ever you want to call it. this move in countries to focus more internally and reject globalization. jeff has spoken out on the dangers of that trend. take a listen to what he had to say about that. >> everybody looks at these trade deals and things like that to be from microsoft or ge or big companies. we already globalized. we had 400 factories around the world. microsoft does in every country around the world. these trade deals help small companies and not big companies. we're for the export import bank but if there's no export import bank we'll move produc

we will tell you what's working for microsoft. u.s.d for the dow.t half of 1%. dow futures of bd. nasdaq up nearly 20. you are watching "fbn:am," your first look at morning markets and breaking news. ♪rock guitar ♪yeah ♪(rock music) ♪all i know is what i've been sold♪ ♪you can read my life like a fortune told♪ ♪and courage built, man i won't let go♪ ♪what we need right now is ...soul♪ ♪(rock music) ♪you can't do this, you can't deny ♪they feed us lines, but i won't act♪ ♪and all good things will come to pass♪ ♪but the truth is all you have to have♪ ♪and would you lie for it? ♪cry for it? ♪die for it? ♪would you? ♪i believe ♪believe we're still worth the fight♪ ♪you'll see there's hope for this world tonight♪ ♪i believe, i believe ♪yeah nicole: it's official, donald trump closes the deal for wine becomes the republican nominee for president. the latest for the convention trade advocate tougher day three. >> another record high for the dow marking it straight days of gains. the longest winning streak in more than three years. this chick

not the kind of thing microsoft has done.ditionally, acquisitions and software can go that are then technical acquisitions but big acquisitions and technical generally go horrible. another piece of the puzzle that the ceo will have to solve. that steve ballmer could not. scarlet: let's move on to a new technology company, netflix, shares down 14% today, pretty much what the options market had anticipated, betting on 11% move after the results came out on either directions as opposed to this degree, netflix did not disappoint, what was your take away from these results? >> the subscriber number has gotten too much of a focus. the reason it gets a big focus by wall street is it it tells you how big can the business be. the subscriber and number will driven by marketing. "jessica jones" and "daredevil" have not caught the attention of the people. subscriber numbers growing at 80.5 million -- 84.5 million -- the lack of growth in the u.s. subscribers cannot be overstated , 0.3% potential growth is horrible for this company. the w

even microsoft's ceo weighing in, saying the game's popularity bodes well for microsoft's hollow lens augmented reality in the works. >> i think i these augmented reality applications getting built because the best thing that can happen in creates a new category is for applications, these apps, the games or industrial scenario to get invested in. pokemon interest hopefully will translate in lot of interest in hollow. >> reaction is mixed. jefferies is bullish saying this game is the tip of the iceberg for nintendo's move into mobile, while namura warns the rally looks excess i, sharing it with developer among others. >> one of the things that i'm skeptical about is nintendo didn't develop this. this is a licensing deal, out . so not sure if it's innovation, for them in the short run. >> for now, the game which looks like this, is such a huge hit that servers have crashed and people have crashed into things as they walk around looking at their phones and looking at this augmented reality world. trying to find characters li. the nypd tweeting to warn people not to play the game while dr

after that, how linkedin is integrated into microsoft. frank: the technology folks will be excited that investors will take a while to see results. the first thing they have to do is not break linkedin and then figure out how to integrate it while assuring other partners and other partners that they are not going to mess up that business and cause other problems. it's going to take time to integrate that in an expanded into dynamics and build the trust and confidence in the linkedin overall. i would stress what was just said about in search and the importance of the agent in use by employees and the work place but also by personal use at home. cory: we were talking about linkedin -- talking about amazon as it relates to competition. as we sit here, i just received telling me that my amazon. on back order is going to arrive because there's such demand, the kind of thing we might have imagined only a couple of years ago. year overdoubling year -- that's important for the future of this business because it's about companies setting their bus

you know, microsoft, again, i think john hit it on the head. the big players, which, again, the are the companies that are going to be most sensitive to the big picture, they're doing okay. and okay. right now is good enough. david: all right. so, again, we get the adjusted, we see 69 cents is the earning per share and actually we have a new number on the actual earnings at 22.6. that is a beat. at first glance it looks like it is a loss, it turns out now it is a beat. the investors were there ahead of time, they knew what it was. although the after hours trading is coming back a bit, melissa. melissa: we're getting pushing and shoving from antitrump protesters demonstrating outside the national republican convention. connell mcshane is there now with more on this. it looks like, you know, the heat has been turned up there quite a bit. what's going on? >> yeah, well, things have -- you're right. heated up in the last few minutes, melissa. and really what happened was you had a mix. so this is what we were thinking coming into this week. any tim

microsoft notably showing stocks increase. this is the cloud business doubling, more than 100% growth in that space. the pc market doing better than expected. that is what they are shooting away from, pcs losing sales, we want to work from our tablets. the destruction in the job cuts, taking a $1.1 billion charge re, but they are managing to get out of the license and into the subversion business. those shares traded higher. manus: caroline hyde with a very latest on sap and microsoft. later this morning, caroline will have a talk with sap ceo. anna: also on the heels of her first cabinet meeting, uk prime minister theresa may has a packed day ahead. we'll take you through her day ahead, because it is a full 100 jobs data due at 9:30 u.k. time, along with the new chancellor philip hammond, getting a snapshot on the month after the eu referendum. and she is in parliament for her first questions as premier. manus: and the start of a two-day european trip, attending a trip with german chancellor angela merkel at 4:30 u.k. time. a

microsoft looking great. microsoft looking great.h it into a tree. your insurance company raises your rates. maybe you should've done more research on them. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. just one of the many features that comes standard with our base policy. call for a free quote today. liberty stands with you™. liberty mutual insurance. charles: microsoft lifting tech stocks and market. driving anticipation that ebay can do the same thing when bell rings today. david asman will be of course covering these for you at the close at 4:00 p.m. start with microsoft. >> stuart varney must be very happy. his shares growing he could retire now on microsoft. he really could. we hear a lot about the cloud and that is what drove microsoft, even though they were disappointing on some things they were growing like gangbusters on the cloud. what is the cloud? the cloud is on demand. you think of watching boxing match on tv, on demand computing, that is where computer growth

microsoft since that is fueling a lot of the gain we are seeing in tech today. after the company's earnings beat estimates. microsoft like many other legacy tech companies have been trying from its older businesses into higher growth businesses and the corporate doubled inorm has the quarter, so that is helping microsoft shares. time to check in on the bloomberg first word news. courtney has more from the first word desk. cruz toss turnd in the spotlight at the republican national convention. the texas senator who donald trump called lying ted will speak tonight. maded trump's older son trump's nomination official speaking from the floor. >> to be able to throw donald trump over the top and the delegate town tonight with 89 delegates and another six or john kasich. congratulations, dad, we love you. courtney: indiana governor mike pence will speak tonight. a teenage afghan immigrant who attacked train passengers with toax pledged allegiance islamic state. he was shot and killed by police. the u.s. is counting on wing commitments at a conference today to d-areas

they wouldn't tell microsoft who it was.ut that was enough to convince microsoft to push the price up to the one that eventually won the day. >> it is interesting too that the notion -- sales force, of course, wouldn't have the cash to do this kind of deal. so we'd imagine the bid would have been probably for stock. maybe they would have had to take on debt to do the deal. so that's sort of part of this. but also, there's a corporate culture thing. it's interesting that linkedin would go with a microsoft culture, which is traditionally a lot more staid than the high-flying software guys across the street from us here, those guys at salesforce. >> well, linkedin's business would integrate well with either. salesforce obviously caters to the customers, sales force, software. this is something that, as you noted, the stock part of the transaction was the reason why linkedin ended up going with microsoft's all-cash deal instead. having the stock component would require more shareholder approvals. it would be more complicated. an

they spoke and microsoft are working on an undersea cable -- google and microsoft are working on an undersea of their own. it could be even faster than google's cable. short of ang underwater arms race to own the internet's infrastructure. : joining me for more on the business of the subsea cable industry is jonathan. jonathan, thank you so much for joining us. first of all, what do you think the significance is of this new google undersea cable and what advantages does it give to google over companies that do not have it? jonathan: it is significant in that we have not seen a lot of addicts like this. but it is not the first one undertaken by a content provider. google has been in this game for at least seven years, starting with the unity project, transpacific in 2010. said they have been involved in several subsea cables and other content providers have been on board as well. the advantage google gets from something like this is economies of scale. it has gotten to a point where a handful of content providers like google, microsoft, and facebook have such incredibly huge demand for bandwi

it's easy to try and blame things on microsoft. microsoft does a few things weird.king my computer search for animated porn, and that's not me. no, i think i have a virus, guys. it's not the shape that's antisemitic. it's when you put it on top of a pile of money, next to the word "corrupt" that makes it antisemitic. it's context. a cross is not a racist shape. but if you set it on fire on a black person's lawn, then it is pretty racist, people! (applause) that's what makes it racist! you know what else makes the star racist? the fact you got it from a neo-nazi white supremacist web site! the fact you have your former caddy as your social media director, who are you? it's like trump hires someone for a job, hiring the next person he sees. trump's campaign is a total mess but you wouldn't know it watching cnn. to explain the tweet, they brought on their newest hire, trump's former campaign manager, a man who literally signed away his right to say anything bad about donald trump. >> the bottom line, this is political correctness run amok. if it was a star next toll hi

numbers out of microsoft, up 4.5%.arnings,ides all the all eyes on cleveland where the republicans are having their national convention, we are joined by john heilemann. he is a coanchor of "with all due respect." when we left it yesterday, the first day off to a bumpy start for mr. trump, did they get it back on track last night? >> a difficult day because the first day had the area's difficulties, they seem to get it back on trump -- track with and thenrump's speech the plagiarism scandal, they try to get through the date by claiming there was no scandal, no one took responsibility or got fired, donald trump did not address it. coverage, lastia night, the rollcall always a big story moment, the fact of donald nomineelikely to be the being consecrated as the nominee is a big moment. donald trump junior gave a pretty strong speech. chris christie gave a very prosecutors oriole speech -- prosecutors oriole speech. by the end of last night, they turned the page although one morning television, we are still talking about

. >> plus, microsoft under fire for a planned intern party. how the tech giant is promising to reward bay area staffers with food and the promise of getting lit. >> and a bay area tradition with a twist. the first woman to crash the glass ceiling of cable car bell ringers. ,,,,,,,,,,,,,,,, backlash. it's probably not something you'd ever get fr >>> new at 5:00 an internal microsoft email sparking a bit of a backlash. it's probably not something would you get from your boss. it was sent to bay area interns inviting them to the annual mixer. kpix 5's jackie ward tells you the language and message itself may have missed its mark. jackie. >> reporter: now, liz, keep in mind that this email is from the same company that hires scantily dressed female dancers for a conference they had back in march. disclaimer, i am a millennial and my generation goes to a job with most perks so maybe that's why microsoft use our lingo to appeal to their interns and create a buzz but to understand this next story i have to define a few terms. bae is something that yo

plus, victory for microsoft in ireland. an appeals court said no to an attempt to access a drug suspect 's e-mail. we will get more information on what the court decision means for data security here in the united states. a new set of digital eyes for the outdoors courtesy of nest. company had of hardware tells us why the new camera will change the game. first, to our lead. japan's leading messaging at its a warm welcome at the new york stock exchange with shares surging in the company's first-day day of trading after the company priced 18% above initial estimates. spoke to the cofounder and ceo and began by asking how they deal about the investor response. first of all, obviously, we are very happy with the initial response from investors. we are going to focus on investing and strengthening our service. service is everything to us. that he: you are the numbers man. tell us where that investment is going to go. >> we will be focusing on japan, taiwan, thailand, and indonesia. we will be using money for investment opportuni

microsoft is doing big business in the cloud.hat you can hook up to and download your stuff whenever you like. i think i've got that right liz: clarity. stuart: the bottom line microsoft is around $56 a share. we've got that. disney, the family of the boy killed by an alligator will not sue. that's nothing to do with the stock price. ashley: no, and that's the family of lane grave is putting that out today. and the stock is down, a percentage loser because the analysts steepifel nicolaus saw that the profits are going to be flat. the movie business is up and the espn side and others, that will off set the movie side. stuart: the biggest loser on the dow. a winner recently, that's facebook. they just hit a lifetime high. is there a story behind this? >> the tech geeks are buzzing over news on facebook, connectivity labs, developed a detector that could pick up lasers, in other words, data that is set over lasers. forget reader frequencies, forget broadband and microwaves. a lot of that using lasers beams and connecting rural areas

take a look at microsoft's revenue growth.s up 28% of the business and includes enterprise services. it has been trending higher but the growth is not happening fast enough to make up for the weaknesses in one time purchases of software. that revenue growth comes at a cost. you can see how operating margins have plateaued. this stagnation is a result of a slowdown in microsoft legacy projects. how next chart shows windows releases have affected the sales over the years. microsoft announced it would not meet its goal of getting windows 10 on a billion devices in two years. the failure is going to its windows phone strategy. microsoft paid more than 84 times linkedin's earnings, the highest of any takeover valued at at least $5 billion. we will look for color on that deal as well as the rest of the outlook on tuesday after the u.s. closing bell. turkey's rating may be cut to junk after friday's failed attempt at a coup. moody's lowered its forecast and the turkish president promised a new turkey. the u.s. and eu are asking him n

microsoft shares rising.esults driven by growth in cloud business. >> we see customers choose microsoft for three reasons. they want a cloud provider that offers solutions that reflect the realities of today's world. they want higher level services to drive digital transformation and cloud open to developers of all types. >> calls it a pivotal transformation and has significant momentum. the shares up 4% in premarket. >> and technology the best performing sector that week. there's an earning story underpinning this market: >>> some other stocks to watch today, sap posting better than expected results. strong growth in high margin passage software licenses and shares responding positively. >>> shares of nintendo dropping today. the decline coming after reports of delay of pokemon go introduction in japan. have these shares been on a wild ride. down 12.5 overnight. >> that par bollic move higher. bhp falling short of expectations. citing brazil as a disaster. >> shares under pressure. total rose 4%. the credit

microsoft and ua and united airlines. so microsoft falling a little bit ahead of the report here.xpected to be down over 3% this time last year. revenue expected to be about the same. the issue with microsoft is that it's struggling to grow its cloud business, the strategy is to offset its sales and obviously demand for windows operating systems. quickly on ual, this is kind of an interesting strategy here because they did not benefit from cheaper fuel costs because united is lower affairs and pay their employees more. so that's really hurt what analysts are expecting for their earnings down 22.5% this quarter, that's the expectation compared to last time this year. liz: lori, thank you very much. the dow is up 21 points with today's convention theme make america work again. what better moment with just two and a half minutes before the closing bell to hunt for companies to put america and your portfolio to work. 3.7billion under assets in management. mark joins us with a couple of names for an ironclad portfolio. i haven't heard people call for steel names in a long time, but you

they spoke and microsoft are working on an undersea cable -- google and microsoft are working on an underseat could be even faster than google's cable. it's nothing short of an underwater arms race to own the internet's infrastructure. joining me for more on the business of the subsea cable both -- is jonathan yum -- what advantage is it to companies like google over companies that do not have a mark jonathan: we have not seen a lot of product like this but it's not the first one undertaken by a content provider. google has been in this game for at least seven years, starting with the unity project, transpacific and 2010. they have been involved in several subsea as yannick cables and other content providers have him on board as well. the advantage google gets from something like this is economies of scale. it has gotten to a point where a handful of content providers have such incredibly huge demand for bandwidth that it makes more sense to provision it themselves and rely on other carriers. emily: talk about the process of laying an undersea cable. how obligated is it? is the cable floatin

we will get details next with the microsoft chief legal counsel. ♪ oliver: microsoft will not be forcedrn over e-mails stored in ireland to the u.s. government for a drug investigation. that is the word from an appeals court in a decision that may affect data security throughout the u.s. technology industry. the ruling overturns a 2014 decision ordering microsoft to turn over messages of the suspected drug trafficker. emily chang has an interview with chief legal counsel brad smith. emily: thank you, oliver, and thanks, brad, for joining us. does this verdict all your concerns about u.s. overreach abroad, or is this a fight that you and other technology companies are going to continue to have? i think today's decision is very important. it sends a message that when the u.s. government wants to obtain e-mails that belonged to people who live in other countries, in other nationalities, it needs to work with other governments. it needs to respect international law. it is very important for the u.s. tech sector because we have long recognized that people will only use technology that they t

guy johnson from london on microsoft.going to come back with gilles moec to talk about the ecb. euro was a data check, a 1.09 handle early -- earlier. let's look at london. ♪ tom: good morning, everyone. good wednesday morning, a most interesting day. guy johnson in london, i am tom keene in new york. here is taylor riggs. the head of fox is said harassmentmid sexual allegations. built fox into the most-watched cable network into debt in the u.s. critics of the ron have taken deal -- could ask of the ron have taken aim at a deal with boeing. interview, the economy minister did not seem concerned. >> maybe we are not that sensitive about this contract. us asnot as important to it is perhaps for the americans because other companies in the world can meet our requirements. .e have higher priorities it does not have the status it has been given in the media. the american side has more of a need to close this deal with iran. kong, a mansion has sold for $81 million, the third villa sold in the new mount necklace project. it we

microsoft do to release its latest office. nicole: in sports, alex rodriguez is nearing a milestone car a milestone, hitting home run number 696 last night. only three players have more than 700 after eight straight losses, the conference finally figured out how to be the mets last night. we will have all the highlights. lauren: 5:01 a.m. tuesday, july 19th. you are watching "fbn:am," the latest breaking news and much of it at the day ahead. trained to melania trump making the case for her husband at the republican national convention in cleveland. >> donald intends to present all the people, not just some of the people. [cheers and applause] that involves christians, jewish, hispanics and african-americans and asians and the poor and the middle class. nicole: donald trump introduced his wife, breaking from the tradition of not appearing before the convention crowd for accepting the presidential nomination. >> we are going to win so they did thank you, ladies and gentlemen. we are going to win so big. nicole: former new york m

where does microsoft sit. >> the distinctiveness that microsoft has is the underlying functional value that they have. in other words, they have office, they have server technology, they have more than just capacity for customers to do computing. they have things that you and i and businesses in particular, it's a commercial oriented business, find value in beyond just mere capacity or computing capacity. so this is a distinctive thing they have. they call it a hybrid cloud. that's where we think they have the value to compete. >> we appreciate your insights this morning. >> thank you. >> j fleece from griffin securities. >>> streak of winning sessions remains. maybe again today. it's up for eight straight days and volatility is down. the vix is at lowest level in almost a year. joining us now is todd gordon. if you're in the same room, your ears don't really burn. you heard what i said about you. >> and i almost left the building. >> you're afraid. >> no. i feel -- i'm confident. >> i've been giving people grief about 2100. and pointing out we're at 2170. >> i'm confident in my market

emily: how much will this help oracle compete with microsoft, sap, salesforce? the end of the day, just like any legacy software company right now, oracle is trying to move its portfolio of hundreds to the cloud. -- products to the cloud. companiesn sap buying to enhance their portfolio and oracle is doing the same thing. as part of their strategy to move things to the cloud, acquisition -- overall strategy, it is a part of it. 8% of oracle gets about its revenue from cloud-based products. this would increase revenue to 10%. is that enough? >> you are looking at human capital management, which oracle has products in, and erp products, which is what netsuite cells. with the strength of oracle's marketing as well as the cash they have, they might be able to put a lot more effort behind this and go after larger customers. something they also want to do with their software products. emily: this comes after microsoft's mega-takeover of linkedin for $26 billion. do you see more big deals happening in enterprise tech? >> in the enterprise software space we would expect

angie: a microsoft apology.ring the terminology that may have the over 30's scratching their head. should we keep calm and carry on? our next guest leaves brexit will not cause a global downturn. we will ask why. this is bloomberg. ♪ my next yes season no global downturn due to brexit. you say that global yields are at record lows across the board, investors don't seem to agree. >> you are right. rebound, and what we have seen this volatility since brexit. the market is trying to get a handle on where the global economy is headed. the u.k. accounts for only 2% of the world economy. that is not significant. for 12%. counts it will not result in a global downturn. it may shave 10 basis points of global growth, but the world economy is still going to be able to grow at 3.1%. it is still relatively decent. angie: that is if you don't ,hink that the flight to bonds the flight to safety havens, is not a capitulation of where we think this thing can go. think so. i don't think the flight to safety and bonds is an indic

>> i think short term microsoft story. i'm not a buyer of microsoft.ked but everything else is not working. bottom line is everything else on consumer side from microsoft is con scripted. you are never going to buy microsoft products unless you have to. i think ultimately that's negative for the stock. even though they did very well on the cloud. i'm an big believer into this big move today. >> okay. dennis, you look tend to look at options side. what are you seeing about microsoft that maybe extrapolating that story out? >> yeah, i'm looking at on the microsoft side is not so much around, you know, their earnings were good, but the other story about this is this is a stock that's now a yield stock. so we see it similar to coca-cola, philip morris, proctor and gamble. those stocks have about 3% dividend yield. microsoft now pays at 2.5% dividend and trades roughly at 26 pe. that is something to become a value stock. microsoft is an established company. it's been around and has good cash flow. so you see people investing in those stocks. i think there i

run on apple and microsoft. a traditional model would say -- we will not put anything on that platform. it turns out that apple is a customer. in our case, we are a customer of apple for things. and on and on and on. everyone argues with each other. but we benefit as an industry from open markets, globalization. and the sense that technology is tramped -- transformative. should we insist on open sources in terms of the future? or are we looking at a world in which each organization is going to be jealously guarding not only what it knows in learning but also trying to protect itself from losing its most talented human beings? eric schmidt: this is the genius of competition. we fight rudely to hire the top people to get our products out. think about the iphone you use today. think about how powerful it is. it is 100 million times more powerful than the computer i used in college. and by the way, it costs a lot less. there was only one of them in college and i stayed up all night to use it because there was only o

we talk about cisco and microsoft pushing closer and closer, but intel, because of microsoft, already ran into the number. so to guy's point, now it's basically flat lining where from we came in this morning. they didn't do enough to impress us. tim is right. the internet of things and the data center, that area we expected more. we didn't get more, but i think in the next couple quarters stacy smith souned very, very positive about the cloud. >> and more to come with the earnings call. so which is the better, qualc m qualcomm, if you remember to commit fresh money tonight, qualcomm or intel. >> i'm into intel right now -- >> you are paring back, wenren' you? >> yeah, i was. maybe they break out but they haven't. >> it was a perfect opportunity for you to say to pete, pete, you know, we play this game would you rather. that's what we do here. i know you don't do it in the morning. you're very uptight. but here's the thing, would you rather, so here we go. would you rather qualcomm or intel at these levels? would you rather, what would you do? i think qualcomm has some mojo behind it.