and microsoft never did anything for me. but they didn't oppose next either you know bill didn't seem next as a factor. he didn't see he didn't seem next as good as being evil having the potential for success and so he didn't have to oppose it. first thing to look at in this product is user interface that's perhaps the most important thing about this product this is the user interface of windows 2.0 of windows 36 in the late eighty's after a basic and dos bill gates wanted his new operating system windows to become the standard system worldwide roland hansen is the man who made bill gates the software industry's number one media figure and it's also due to this marketing wizard that windows the graphics into fees which would conquer the world owes its name. we realized that the opinion where you know they were calling these gurus none of these writers were calling them goodies anymore they were calling them all when doing systems because they were creating windows on the screen. personal holy crap if these are all windowing

microsoft has made significant functional improvements to microsoft teams over the past year.ry confident in saying they are not going to let up. we expect them to invest substantially in teams. ago we said, other than azure, teams is the best product they have introduced in the past decade. taylor: just about 30 seconds or so, cowan had up graded micro data -- had upgraded microsoft. where is the relationship as a whole? had business is is frankly small as a piece of the pie. this is a company that is going do 140nto 40 -- to billion dollars. it is a consistent double-digit grower. they have done a nice stub executing versus a few years ago. taylor: dena bass and greg moscowitz. thank you both for joining. that does it for this edition of bloomberg technology. bloomberg technology is livestreaming on twitter. sure to follow our global breaking news network at quick take on twitter. this is bloomberg. ♪ >> the following is a paid presentation brought to you by rare collectibles tv. >> in a letter dated back to december 27, 1904. to the secretary of treasury, president theater

what microsoft has done to catch up first of all, a more standard strategy for microsoft, putting their in the office product for free. the other thing they are trying to do is leverage the strength they haven't -- have in different enterprise. they are looking at banking and health care and figuring out what features those employees need. today, they announced a feature for retailers, for store employees where you can press a button on your team's chat in order to turn your personal mobile phone into a walkie-talkie. that would allow store employees to talk to each other. looking at similar features like that in manufacturing and finance, and a couple of vendor -- other industries where microsoft has been strong with their cloud product. it is a way to derail slack and grow faster. taylor: as you take a look at the microsoft team's business, is slack real competition? view, slack, and our still has a best in class product. they have created a category. what we have seen is microsoft has made significant functional improvements to microsoft teams over the course of the past year. in add

adam, we have a few seconds whether facebook or microsoft comes out but give us an idea, microsoft is behemoth but a behemoth executing pretty well. what do you expect this afternoon? >> my inclination to speak slowly, connell. we expect them to do well. they have positioned themselves extremely well as second fiddle to amazon web services by focusing on bigger clients, on these massive enterprise businesses that are that are their core customers. if they continue to do that, they will do well. people don't follow that, if you use a microsoft computer and software but that is their business right now. connell: we'll get into tesla in a moment. jonathan, i'm sure you have a lot to say about that stock, even facebook, especially tesla is a ridiculous run. to the extent a technology company can be boring that could be a good thing, microsoft is doing that pretty well, right. >> it was really boring, connell for better part of 10 years. it was dead money. connell: that's true. >> 2000 to 2010. then the company to adam's point successfully remade itself. it is not about explorer. it is not

sarah: microsoft blowing it out of the water. azure cloud business really just surging year-over-year. we continue to see growth. microsoft higher, tesla as well up 7% after the close right now. right now, the world health organization is considering an emergency declaration. all this as many airlines are suspending flights to china, sun as far out as march. here with more is bloomberg's shery ahn. on you get us up-to-date what the numbers look like? shery: global cases of 6000 affected people. in china, 5974. really interesting, more infections than the start of the outbreak in 2003. the death toll has risen to 132, so not surprising that you have the who now reconvening to try to reconsider this international alarm. who is saying that the death rate is around 2%. compare that to sars come around 9.6%. romaine: we did get a reopening of hong kong markets and we got . reaction shery: we are seeing a lot of catch-up when it comes. the hang seng index, now at the weakest level in about seven weeks. still, we saw a lot of bargain-hu

looking closely at microsoft, as well.am seeing is the growth that aws services has is slowing. there is a pickup at microsoft today equivalent of cloud services. there are certainly in the startup scene and other areas. people are going cool on aws. it is not the hip cloud offering, but people are kind of still interested in microsoft's offering. of course, they have alibaba and others to choose from. if you look at the various cloud offerings, that will be interesting in the next few weeks. taylor: my favorite segment of the week, tom, tim, and taylor in that segment. thank you to tim colton and tom giles. technology is rapidly changing the auto industry. volkswagen offered several new partnerships and pushes into the electric vehicle market. in davos, the ceo discussed the shift in the industry. >> i think it was a positive meeting. i had a chance to talk to the administration's secretary, ambassador lighthizer was there. and mr. mnuchin. we did a lot to prepare. we invested heavily to adopt a new -- often after regulat

you left microsoft. melinda: i surprised bill and told him i wanted to leave microsoft.avid: his reaction was? melinda: really? he knew i loved working at microsoft. he knew i had that piece of my brain that loved to be on the working side. he was quite surprised when i told him i was going to leave. david: did you go to the foundation full-time after your children were older? melinda: my whole issue, i had it timed for when our kids would get older. i knew until our last daughter went off to preschool, i was not going to be full-time. once she was in preschool, my plan was always to work full-time. david: let's talk about the issues of women in sub-saharan africa and other things you address in your book. you point out in sub-saharan africa and other places, there are child marriages. women are forced to marry at 6, 7, 8 years old. why does that happen? melinda: quite often a family will marry their daughter off because one, they then don't have to feed her, so there is less resources from their family, and two, they also want to protect the family's honor. that is a cu

taylor: i want to get your opinion on microsoft. path from 165 to 195 on microsoft?it is the first chapter of cloud. amazon, besos one. i think the next chapter is microsoft. microsoft winning on this next stage, you even saw with the jedi deal, you are seeing more of these conversions. relieving in microsoft, but numbers going higher. the cloud piece, and we continue to see the 3% to 5% beat from microsoft, that is the delta on the stock. you can get the $200 on microsoft. that continues to be our favorite cloud play. there is a shared gain story from besos to modelo. taylor: thank you for your insight, and thank you for joining us. the bulls are out. we talked to greg moscowitz on his $180 price target for microsoft ahead of earnings next week. this is bloomberg. ♪ microsoft set to report quarterly earnings results next wednesday. heading into that report, greg moscowitz upped his price target on the tech money to $180 a share. more bullish sentiment thanks to blue skies ahead for its call product. great to have you. one of the higher priced targets on the streets.

we get details from microsoft president and cfo. what an internet pioneer sees in the decade to come. years in the making, the u.s. and china signed phase one of the trade deal on wednesday. they put pen to paper for a deal that the president claims will have a significant impact on the tax world. >> -- tech world. enforceable made commitments regarding the protection of american ideas, patents, and trade law. also agreed to confront pirated goods. people in the room with the likes of executives from micron, qualcomm, ebay, and others. director ofhe digital and cyberspace policy on the council of foreign relations in new york. in washington, eddie collins. >> we have learned that the u.s. and china have taken the first step to negotiate some big imports into the u.s. in terms of china promising to commit to buying of more u.s. products, as well as some concessions in terms of enforcement around intellectual property protection and patents, as you mentioned, so, essentially, china is saying we are committing to about $200 billion in

we will get details from microsoft president and cfo. and we look at what an internet pioneer sees in the decade to come. after three years in the making, the u.s. and china signed phase one of the trade deal on wednesday. and the vicemp premier put pen to paper for a deal that the president claims will have a significant impact on the tech world. pres. trump: china has made enforceable commitments regarding the protection of american ideas, patents, and trade law. china has also pledged action to confront pirated and counterfeit goods, which is a big problem. taylor: those people in the room with the likes of executives from micron, qualcomm, ebay, and others. to discuss the implications, i talked to adam siegel, director of digital and cyberspace policy on the council of foreign relations in new york. in washington, bloombergs peggy collins. we have learned that the u.s. and china have taken the first peggy and china have taken the first step to negotiate some big : imports into the u.s. in terms of china promising to commit to buying

>> microsoft was just a glitch over here.la is a legend in india because of what he has achieved. amazon is a big problem here and the problem is amazon itself. amazon's monopolistic ways are tolerated in the united states. taylor: what about apple and samsung? >> right. they are doing well and are being encouraged to move and you factory -- move the factories. there are not really issues with those companies. taylor: zen meat has been dubbed chinese version of impossible foods and launched it plant-based foods last year. they joined tom mackenzie shanghai on how competition for the market is shaking out in china. him and >> the government definitely wants more plant intake or consumers, chinese consumers. also, unfortunately, we had last the event that doubled the effect of the plant-based food sector. a lot of food companies are noticing this new area. like our competitors in the u.s. like beyondmeat and impossible foods, they have done very successful marketing and product development in the u.s. market. so, people are exp

microsoft and amazon have also passed the $1 trillion mark. struggling airline flybe has confirmed it is in talks with the uk government over a loan, but says the financial support would not constitute a bailout. rival airlines have called for more details of the government's role in helping flybe to be made public. they argue that support for the troubled regional carrier may break european competition rules. the us senate has approved a new trade deal with canada and mexico, sending it to president trump to be signed into law. the deal, which covers annual trade worth $1.2 trillion, replaces the 26—year—old north american free trade agreement, or nafta. canada's parliament has yet to give its approval, but is expected to do so. i will have plenty more coming up later on. next up we're going to go through some the papers. the royal college of psychiatrists is calling for social media companies in the uk to be forced to hand over data to universities for research into the potential harms of using the technology. it wants independent experts to

big "mad money" with jim cramer and microsoft. >>> my mission is simple, to make you money i'm here to level the playing field for all investors. there's always a bull market somewhere and i promise to help you find it. "mad money" starts now hey, i'm cramer. welcome to "mad money" welcome to the west coast edition. my job not just to entertain but educate and teach. so, call me or tweet me @jimcramer. this week it's like the whole world's been turned upside down. we've got record highs, dow surging. s&p gaining. nasdaq 1.06% texas earnings forecast and yesterday's trade deal with china. at the same time individual companies are taking action to fight climate change in a way that's unprecedented these are issues that could hurt earnings per share yet the market doesn't seem to care. the market seems to like it. it's insane. for my entire life, especially the last 40 years, you have companies doing anything they could to make a profit and the government working to restrain them. it was the government that forced big business to care about clean air and clean water. thank you richard nix

i spoke with microsoft president and chief legal officer, brett smith, earlier. >> microsoft's commitmentput a billion dollars into innovation is a piece of a broader plan, but the fund itself will really be focused on accelerating innovation and climate reduction and removal technology where money is not flowing already. one area where we see paramount importance is the creation of new and better technology that will enable us all to remove carbon from the atmosphere. another area where we see a critical need for money where it is not yet flowing is, for example, project finance for renewable energy sites in developing markets. there are some parts of the world, especially in the united states and western europe, where capital is already flowing for new renewable energy. not everywhere. we want our money to make a difference. taylor: are you really looking outside the u.s. to deploy this $1 billion? brad: certainly in part we are looking outside the united states. when it comes to the creation of new places that will generate renewable energy. but when it comes to technology innovation,

coming up, microsoft joins the global movement fight climate change.e will hear from its president and chief legal officer brad smith about the plans they have -- tech giants have in store. and if you like bloomberg news, check us out on the radio. you can listen on the bloomberg app, or bloomberg.com. this is bloomberg. ♪ taylor: microsoft made a major investment announcement in the effort to fight climate change. it will invest $1 billion in companies and organizations working on technology to reduce or remove carbon from the earth's atmosphere. i sat down with microsoft's president and chief legal officer, brad smith. brad: microsoft's commitment to day to put a billion dollars into climate innovation is part of a broader plan but the fund itself will really be focused on accelerating innovation and climate reduction and removal of of technology where money is not flowing already. one area that we see being of paramount importance is the creation of new and better technology that will enable us all to remove carbon from the atmosphere. another area

we love microsoft.e raised our price target today. >> it's expensive. >> but so what if there's liquidity. it's the highest quality name in the moorkt place people will continue to buy. >> apple is a defensive name now? >> it's a high-quality name not defensive. the market is paying for quality. quality growth and that's what we want to pay for too we think high quality, large cap growth is what the market wants. >> by the way, apple as we speak hits $301, that's a new all-time high for apple as well. the fed you say, okay, qe or whatever is going to end they're still going to be there, thoug though. >> how do you know >> well we don't but who cares about the back half of the year. we're bullish on the next six months for lots of different reasons, fundamentals have improved globally more than in the u.s. right now most of the improvement in the pmis has been in china and europe, not so much in the u.s. yet. the u.s. will be a laggard in the recovery globally. valuations are cheap and we've corrected th

we talked about microsoft earlier today.icrosoft, the stock was trading a little bit higher than this when this happened but again the 165 calls that we talked about yesterday they present from 150 all the way up somewhere between 750 and 950 depending where you were looking. today we are looking at the february 1 75 calls, strong buying of these as well. that's impressive because these are next friday expiring these were trading for $1 when the stock was trading 172. i like this trade. i like what we are seeing right here i will be in this trade. unless it moves faster i will be in there about a week. >>> we have a news alert breaking at the bottom of the screen we will go to meg tirrell. >> the centers for disease control and prevent is confirming the first case of human to human transmission in the united states of the coronavirus. they are turning it over right now to the illinois department of health on the call going on right now. it appears it would be in conjunction with that case that had been confirmed in a person

that was brad smith of microsoft.will hear from him next about how microsoft and other tech could benefit from the u.s. china phase one trade deal. this is bloomberg. ♪ taylor: more from brad smith. about theut long-lasting tensions between the u.s. and china. i asked him to elaborate on his comment about -- >> it was a good and important step. it adds stability, it creates a foundation for additional progress. it adds to business confidence. it we were definitely very happy to see it and supportive of it. i think we should all want to see continued progress made by the two governments together. realu were talking about a threat of a technology cold war. what does that look like to you? >> i think that a phase one trade deal doesn't necessarily put to rest the other technology issues that have become part of the geopolitical landscape. these are the two largest economies and they have the strongest tech sectors. both governments are focused on national security implications. conversation has become a conversation arou

>> 25. >> and what is microsoft >> microsoft is growing. >> it is growing. >> like a weed grown over 20% apple has been declining. >> you read my notes earlier. >> i didn't read your notes. i didn't even know you knew how to write. >> serious, though. >> they're always going to have different multiples. >> i think this run in microsoft has been a great run sataya nadella is doing everything right they're killing it in cloud. they go after everybody and crush them look what they're doing in the head-to-head competitions in other cloud competitors i still think the multiple, however, looks a little rich at this point in time. i'm okay not owning the stock. i'm buying coal. i can still ride this thing if we get a good number if there's a miss or any kind of pull back, steve, i'm not sitting there holding it, the stock is 167, made this magnificent run and i think it's going to pull back. >> i agree but apple is much more expensive. >> i agree. >> than microsoft. microsoft has that subscription model, unfettered growth, continual growth you can't compare a software company with a hardwar

we have several orders of magnitude, the size of microsoft cloud. i think that really answers the question. that being said, there is a lot to be said about how microsoft has really invented this area. it is doing a lot of things right. also, amazon kind of quibbles with the trump administration and the pentagon did not help the perception. all, the market stays in the best growth. there is a tie there that i think will serve the industry dominant players very well, especially the early movers like aws and microsoft. finally, i want you to take another look at a chart i'm showing here. this is as of close thursday, so it is not yet reflecting the post market movement, but if it were, this would be a $1 trillion company. is that valuation justified? >> i think so. that is why we have kept our high recommendation in the face of the antitrust and government investigations. i think this is likely to be a volatile stock in the year ahead , but we are heading to the presidential election year with all of the potential chatter about antitrust. this is a na

this microsoft now 35% operating margins. azure growth is still ridiculous and if they keep beating eps by the marjs that they consistently do the fact that it's higher now, you can make an argument that it was maybe less expensive than a couple days ago. >> okay, boomer. >> see you do that. >> walked right into it. >> he did. >> tim made a good point about liquidity and blind flows. this stock spent spernt the late fall consolidates between 130 and 140. a lot of people were wringing hands about trading 26 times historically that's a high multiple to guy's point as soon as we saw, whatever you think happened in the last quarter of the year with the fed balance sheet that sort of thing. the biggest stocks on the planet went par bol ib microsoft, apple. wasn't so much amazon but a lot of the other megacap tech names and this stock participated. those numbers were great but trading 31 times this year you have to go back two decades to get microsoft above that. valuation doesn't matter right now. it will during a correction. and

this comes as microsoft is urging all users to download windows 10 for free. as of today the company will no longer provide security fixes for that very popular windows 7. >> reporter: cyber security experts announced the flaw in microsoft's operating system in a phone call to the media and urged all microsoft users to install a new security patch immediately. >> today's patch has a number of critical and important patches, and we're going to implement all of them. >> reporter: government and military agencies got the patch earlier, and they are secure. experts say the flaw left unfixed could give hackers an open door. >> there's a critical vulnerability inside the windows operating system that would allow hackers or governments over the system, not just for your pc, but systems that run banks, power plants, and other systems across the world. >> reporter: computers with automatic updates enabled will get the fix automatically. otherwise users need to go into their computer settings and select windows update. this comes on the same day microsoft is urging cust

microsoft profit and sales beat estimates.his is bloomberg. ♪ taylor: microsoft second-quarter earnings coming in above the highest analyst estimates today, beating on both profits and sales. it seems to be all about the cloud coming in at $11.9 billion in revenue. how much market share are they taking from amazon? microsoft is the fastest-growing player in the cloud computing field. amazon is still the big dog in the fight with aws, but microsoft is coming on very strongly, a clear number two revealsehind aws and kind of bringing up the rear. -- and everybody else kind of bringing up the rear. is prettyzure astounding, even in the world of cloud computing. that enormous of contract, $10 billion, is there now and expectation that microsoft will continue to deliver big deals like this? how much more upside is there? lenn: a lot of it is derivative off of that. there are a number of sectors that have gone pretty strongly with microsoft as the plaut -- as the cloud provider. will there be more big deals like that? we doubt there

apple, microsoft and amazon have already hit the landmark.r one millionjobs in india over the next five years. it comes after the country's trade minister said the tech giant's announcement of a $1bn investmnent in the country did india no big favour. founderjeff bezos has been visitng india this week and faced protests from small business owners who feel his company is harming their prospects. the world's second biggest economy is now growing at its slowest rate in 30 years. china recorded growth of 6.1% last year. still within government targets — but the lending numbers were disappointing. a drive to cut bad debt, while pushing banks to prop up small risky firms, s squeezed healthier private companies. stephen mcdonell is in beijing. i suppose all in all, steve, given 2019 and the us—china trade issue, no great surprise? yes, i think we saw this coming, people predicted it, and yet there will be headlines that china has just posted its slowest, its gdp growth for three decades, now, people will think what is going on in china, this is one

i like what i am seeing with microsoft. the trend is much stronger with microsoft.he cloud business at amazon and microsoft, those of been the drivers. but it looks like microsoft is moving ahead. from a chart perspective, we are better off and generating better alpha with microsoft right now than we are with amazon. taylor: he mentioned parabolic. i think there is another company you have done some recent work on. that is tesla. the rate of change has come people off guard. what drives tesla forward? is it the fundamentals? i am not sure it is the fundamentals. you are getting a lot of hype into this company. a lot of people believe that tesla is truly going to change the world. you look at the chart, that is fine. but here is another example of a parabolic chart. if we look at this and say, it is a great company, but is this where you put fresh, new money to work. for me, the answer is no. i think we really have to distinguish between the fundamentals, the tech knology, and where do you put your hard-earned dollars to work? tesla is fine. you have to wait for corr

microsoft, as you said earlier, is one of the big us giants, in fact it's one of the big global techs. it has the muggy, the willpower and the expertise to make a difference. i think together with amazon and other companies, microsoft can really make a difference, perhaps even encourage smaller companies to follow suit. this is notjust an isolated incident. they're going to be discussing this at davos. it is ahead of every organisation in the world from finance companies to take. they are all discussing how they can minimise their environmental impact and it will become i think a shareholder imperative that shareholders will wa nt to imperative that shareholders will want to hold companies to account for their esg credentials. there seems to be a change in thought. we know blackrock, one of the big investment houses, changing their policy. on this particular one with microsoft, some of these reports about going carbon negative, affectively taking out more carbon than they put in, and largely ignores the questions of microsoft's own relationship with the big oil and gas companies. the

i'm not suggesting this is microsoft by any stretch but a lot of people thought microsoft was impossible for them to turn that aircraft carrier around five years ago. they did with the red hat acquisition although paying through the nose for it ibm might be upon the verge of similar sell it at your peril. it's it could be a surprise stock. >> isn't it odd they haven't turned it around sooner. if you look back 2013 was the high. $215 down 40% basically from there unher watch. >> earnings are not better either. >> i don't believe they could turn it around. >> doesn't take into account the significant repurchases, so in fact, the earnings -- i mean as it ends up, those repurchases. >> lost warren buffett along the way who was relatively brief for him was a important investment. >> it should be cloud, ai. it's an amazing company it's not translated to a better stock price. it's still on a declining trend line back to 2013. so to guy's point, you have to break that -- break out of that trend before you get new investors willing to get onboard with ibm because they see it as the old company no

microsoft does notjust plan to go carbon negative.move all the carbon it has emitted since it was founded in 1975, although it is still doing the sums on how much that might be. it knows its plan is a moon should it might not achieve, but it hopes it can inspire others to minimise the impact on the environment. i'm joined now by our scotland correspondent lorna gordon and david shukman, our science editor. how much detail have the authorities in glasgow actually given about how they hope to achieve this carbon neutral target by 2030? lots of ideas and an acknowledgement that the ideas have to be translated into action and fast, so of course we have the obvious stuff like more pedestrian areas, more cycleways, more ambitious ideas like perhaps a council owned bus company where tickets could be free to encourage people out of their cars, big challenges, now, 70% of people in glasgow live in flats, how do you encourage them to use electric cars? might they use streetlights to charge cars overnight? and then of course the other big is hea

i like what i am seeing with microsoft. the trend is still much stronger with microsoft than what i had with amazon. so the cloud business at amazon and microsoft, those of been the drivers for these companies. but it looks like microsoft is moving ahead from that perspective and showing better relative strength. so from a chart perspective, we are better off and generating better alpha with microsoft right now than we are with amazon. taylor: you mentioned parabolic. i think there is another company that you have done some recent work on. that is tesla. it is that rate of change the last six months which has caught a lot of people off guard. what drives tesla forward? is it the fundamentals as we await earnings in february or more the technicals? craig: i am not sure it is the fundamentals. is becoming a cult stock at this point in time. you are getting a lot of hype into this company. a lot of people believe that tesla is going to change the world. you look at the chart, that is fine. clearly a lot of things are happening

this is where the comparison to microsoft differs a lot. they have got a lot of debt on ibm's balance sheet because they finance customer acquisitions of their poukts spin that out, to a finance company, you do that and you will get two or three times more turns multiples on your earnings and margins go up. you get those things done you hit a home run here's the problem the guy coming in is a lifer at ibm. old boss meet the new boss until there is a change in how this company is run. >> they thought the red hat guy was going to be the new ceo. >> yes. >> that would have been -- the stock would have been up 70% >> he was named president. we don't really know what the separation of duties is going to be. >> assistant to the regional manager? >> for all we know the president can be running it and as i said, i don't know if the new ceo is actually -- >> what they did say about him is that -- what they said -- i guess i like it. i don't know but they said watson had high falutin' expectations how it is going to change the world. and they basical

how is microsoft going to meet these targets ? how is microsoft going to meet these targets?t is talking about going carbon negative. put to put this in context for you before i get to how they would do it, it is joining ikea and a handful of companies that are promising essentially to remove all the emissions the company has ever released. how will he do this? as well as part of its daily business practice, forcing employees to think about emissions when they make decisions, the company says it is going to try and also move things across its entire supply chain. they are not thinking about reducing business, but they are looking at how do we power our data centres because those obviously emit a lot of emissions. that is why they are trying to buy 100% renewable energy and the intend to rely on electric vehicles going forward. this will ta ke vehicles going forward. this will take time, but we have some reaction with the extension rebellion group in the uk activist they're basically saying this is an important step in the right direction. quickly, microsoft will say it is doi

this is one of the moves to make sure a company like microsoft knows about it.speak, that is a huge number to get it expose like a. >> how would you explain the issue uncovered by the nsa? with windows 10? >> you know, when you write a code to make sure it is recognized by the printing system as a valid code from somebody we trust, you had something called cosigning, like a digital certificate. it is a problem with the operating system, windows 10 where the hackers can have this kind of verification process with malware or any kind of virus. accepted by the operating system and not checked by the antivirus or spyware. this is really a big problem. >> so, essentially in the past, the nsa might have tried to sort of weapon eyes this kind of flaw in windows 10 in the operating system. but again, they decided not to and reveal the issue to microsoft, how would the nsa in the past have taken advantage of this kind of a flaw? >> you know i how operations is running but, the oblem, this fl you have to from the other perspective. what if another country, one of those co

microsoft looking heady as you have mentioned. >> microsoft and apple were the drivers in the late partst year see if they can carry over. >> happy new year, everybody >>> i'm scott wapner new year, same story stocks hitting fresh record highs. how long can your money keep running? it's 12:00 noon and this is "the halftime report". >> new year, new highs stocks starting off with a strong start as all three hit record levels. where to invest at record highs. bank of america has a new list with the ten best stock ideas for q1 those names are coming up. another call to sell wells fargo. the second downgrade for the big bank in the last two weeks it's our call of the day

there is microsoft azure, amazon aws, and google cloud.ud being a relatively new entrant that went from zero and now it is an $8 billion run rate. what distinguishes these guys is they have done some pretty nnovative stuff. amazon first but it's scale. facebook, amazon and google, operate infrastructures that are bigger than anybody else. that is their ticket to entry. my point of view is, why wouldn't they? i know they've discussed it. i don't have any idea they will. it just makes total sense. and it would give them regulatory protection. they would be the last to enter into a market, three players, if we get a fourth. they would probably avoid a lot of regulatory scrutiny that they would get particularly if they do something in the consumer space, trying to expand their acquisition or back in the thing. it just seems like low hanging fruit that they could take right off the tree. taylor: you talk about the other three entrance in the market. another one of your top calls is that google's cloud will make significant roadway into that. bu

cnet senior reporter joins us on cbsn bay area earlier today to talk about microsoft's big goal. >> microsoft has a huge cloud business, and the department of energy found that 2% of all energy consumption comes from data centers, so these are those big server farms where, you know, every time you access netflix, it's going to these and pulling it down, so that i think microsoft is going to look at the >> microsoft expects to put out 16 million metric tons of carbon this year, which is roughly as much as 15 coal- fired power plants. and you can watch the full interview on our new streaming service, cbsn bay area. find it through kpix.com. the cbs news app, or your favorite digital platform. >>> prince harry and his wife meghan are threatening another media lawsuit. a royal source confirms lawyers for the duke and duchess of success that issued a warning to the media over the use of paparazzi photos. the media outlets published photos of meghan and baby are to in canada. the lawyers claimed the photos were taken without consent and acute the paparazzi of harassment. prince harry arrived in can

dois certainly possible to traction here. >> i'm glad you brought up microsoft.nly getting them into the cloud, but becoming a formidable competitor. comes after ibm managed to turn things around with the lading's earnings report where it broke five consecutive declines and because of that push. >> let's bring in someone who knows a lot more. this was kind of a surprise. >> wendy red hat deal happened, i was hoping they would make a change around that time. made a lotwould have more sense, but this is actually very good news because he was responsible for the club division and said we cannot live in a silo. >> are those divisions doing well? see and itstarted to is not going to be easy. we are starting to see early still has awth and long way to go, but this is a good step in the right direction. excitement is around the cloud business. part of that represents 30% overall revenue, but it is not exciting. what is going wrong? >> ibm prior to the cloud assets , which largest company is where this revenue comes from >> people are shutting their data centers off and

tesla, microsoft, apple leading the day.est says judgment side is possible for both alphabet and facebook as well. he joins us here at post 9 good to have you we talked a lot about cloud, but digital advertising, e-commerce. what is the market not understanding about the overall space? >> i think a couple things i'm seeing overall the first is kind of across the board there's healthy growth but not that robust 30%, 40%, you know, top-line growth taking place anymore. what we're seeing, earlier from the cloud, everyone is getting into each other's space, compete for dollars but they're all in that 15% to 25% annual growth range, so that's why advertise is getting into e-commerce and vice versa >> on your list of outperforms, facebook, google, uber, snap twit we are a sell then amazon left pins in between. what are the threads >> i think one of the most interesting calls on there is amazon at a market perform with peers going with a byside rating part of that is the natural ebbings in their core business one thing they're grea

microsoft have robins here, but also -- microsoft has done wonders in india.t you smiley pointed out that --le and samsung have had haveare more welcomed and subsidies to gain inroads. what is the difference in tactics between companies that are received well, and companies that are not? microsoft, theof company is doing well and is well respected. there is no issue. amazon is a big problem. the problem is amazon itself. ways thatonopolistic we should not tolerate. taylor: what about apple and the samsung? >> they are doing very well and encouraged to move manufacturing. india has not been buying high-end apple phones because they are so expensive. there is not an issue with those companies. would youat advice give to ceos in this case? when we talk about apple and tim cook, he has had a great relationship with president trump relative to other big tech companies. he is having a better relationship there. what is the difference? does it come down to the ceo? comments a mistake to is adia's laws, but that minor glitch. that will be forgotten and microsoft will

taylor: that was microsoft's ceo satya nadella.eft noof google has doubt about how important he thinks microsoft -- important he things ai will be. he thinks efforts and framework to regulate ai is a great start. >> ai is one of the most profound things humanity is working on. electricity, or anything else we have worked on. it has tremendous possibilities, but real negative consequences. when you think about technologies like facial recognition, it can be used for benefit to find missing people, but it can be used for mass surveillance. as democratic countries with a shared set of values, we need to build on those values and make sure when we approach ai we are doing it in a way that serves society. that means making sure ai doesn't have bias, that we build and test it for safety. we make sure that it is ultimately accountable to people. 18 months ago we published a set of principles under which we would develop ai at google. it has been encouraging to see that european commissioners identified ai and sustainability as their top p

those would be areas where we are seeing microsoft gain momentum.lor: that was a bloomberg correspondent and a mizuho analyst. the food delivery service is and -- is a crowded one and there were reports grubhub may be looking for a sale or acquisition. analysts say the company is more likely to be an m&a target. for more, i spoke to john white and a jefferies analyst. >> we have seen the consolidation space with doordash buying caviar. i think it could go either way. clearly, there has been a lot of pressure on the revenue. there has been a lot of focus on the market. our short-term thesis is that grubhub has been dislocated. they had great margins, but long-term, the economics can be restored. i think the ceo of grubhub has said that consumers should not get used to the prices they are seeing right now because they are not sustainable. in any market, you see too many vendors chase the market. there is way too much competition. that will consolidate. potentially, economics will restore. there is a standalone case for grub where they can do very well

the reality is that users are higher for slack users and microsoft -- people that have access to microsoftt fortune 100 companies and also have slack which i think speaks to the popularity of slack. that being said, yeah, it is going to be tough, going to be a dogfight there is no way microsoft is going to let this company run around saying we are going to eradicate email as we know that is the franchise microsoft needs to protect that's what they are going to use the teams announcements for, to marginal stewart' company i don't think it will affect them long term, i think it may affect it short-term i may be out soon. >> that's why i wanted your opinion. >>> ubs is upgrading snap. the shares are up 5% snap was up 229% in the last year wow. what do we think about this? never gets talked about. didn't get any respect. >> if i had to declare last year, and i did and i had been involved i would have shorted it clearly that would have been wrong. the reason i didn't get involved and i don't get involved in twitter anymore is because i can't analyze the business, analyze what's going on. i can