they are here to see nadella.king about his vision about the world of computing. >> the world in the nymex five years in the tenures will him not be defined by the form factors and we know today but the variety of form factors that will come to deal with the coming years. if you think of the core evolution of silicon hardware systems. >> that kind of gives you an , aa of the thought process real clear vision of what the future of computing will be and not sure where microsoft is in that. don't be wrong about that. this is not about the apple ios. this is getting all people in systems to subscribe to microsoft office 365 and how they will work hand-in-hand. the apple ios product is just a part of that. >> the cloud that is not connected to devices is just latent potential. how does the cloud react with the real world? interacting with real devices. a device which is not connected to the cloud dust cannot complete the scenarios. it really gives you a clear idea of what they are trying to think about and the advantag

nadella being mr. balmer's replacement. you scored the big sitdown with mr. nadella as well. terrific to have you both here. matt, start with you. what are you expecting and how significant will be the office 4 apple event, if indheed does occur? >> i think we'll see announcements around the ipad and more importantly, the idea that microsoft's applications and services need to live on lots of different types of devices. because we're in a world of mobile and cloud, which is a world of mobile and cloud. i think that under satya's leadership they understand that in a way that maybe hasn't been fully embraced in past. the other thing you should expect to see is not just talking about mobile and cloud from the consumer perspective, something that gets all of us excited about it, but what about the developer perspective? what about the perspective of -- >> right. >> -- people having to manage all of these devices that live within enterprises today? so i think this is going to be -- while not strategically expansive, you know, starting to put a stake in the ground around the differ

satya nadella takes the stage for the first time as ceo. we speak to tim armstrong about his plans to shake up the online ad business. but first, your bloomberg headlines. turkey has blocked access to youtube a week after blocking access to twitter. they claim it is for national security purposes. a video about officials talking about military intervention was posted online. so far, there is no indication when twitter access will resume. the price tag for softbank is three point $2 billion. they are going to start a new service called why mobile. owns 40% of ceo yahoo! japan. fell on fears of a china crackdown. chinese media reported that it doingdered banks to stop business with bitcoin exchanges. an executive tells bloomberg they're waiting to see what happens. lead story. a big day for satya nadella. microsoft's ceo holding his first major event as head of the company. he unveiled software for the for the very first time. cory johnson was outside the event. >> despite all the people on the streets and the buses arriving, they are not her

they are here to see satya nadella. this is his vision of the world of computing. >> the world in the next five years, next 10 years, will not be defined by what you know and love today, but by the form factors that will come to be over the coming years. if you think about the core evolution of hardware systems and software, the there are many new form factors at a pretty rapid pace and that will make computing ubiquitous. >> that kind of gives you an idea. the ceo has a real clear vision of what the future might be, although not quite sure where microsoft is in that. this is about getting people on all operating systems to subscribe to the microsoft cloud. listen to what he had to say when talking about the cloud and devices and how they are working hand and hand with devices. >> that cloud that is not connected to devices is naked potential. how does the cloud interact with the world? it is through devices. it could be mobile, tablet, a big screen in a conference room or living room. likewise, a device cannot complete

satya nadella is happy to deal with the tug-of-war over strategy.iallybill gates disagreed with steve ballmer's plan to make mobile devices. it did not help that microsoft surface tablet was a dud. satya nadella microsoft promoted to manager on the business and tech side of the company. >> i'm a lifelong learner. >> is an electrical engineer from india. at microsoft.ars he ran the company's r&d unit before steve ballmer named him the head of the server group. he reengineer that business into the unit known today as cloud and enterprise. under his leadership, it is risen to number two worldwide in cloud computing behind amazon. the dela is seen as someone who can help microsoft innovate faster as it tries to navigate the post-pc world. in the meantime, he can still count on microsoft's two biggest money makers. windows and office. >> it is time for a look at what we're watching for the rest of the day. we're joined by jon ferro in the studio to mcallen high to, and hans nichols. >> satya nadella takes the stage. are you excited about that? >> i think

i think a lot of it has to do with nadella.talked before about how microsoft has 90% plus share on pcs but less than 5% share on tap bracelets ablets a smartphones. nadella is saying we only sell 5% of the market on tablets and whan we expect today is to be able to sell the applications to 100% of the market. that's a big deal in terms of the revenues microsoft can generate over a long period of time. so i think, yeah, i think he's either really positive influence on the company and sort of admitting that, you know what, we may not be able to get windows revenue on smartphones and tablets but we can sure get application revenues and we're going to go after that. >> what i hear you saying you layout a pretty good case. you do not own shares of microsoft. is it a show me story still for you? >> no, i only reason i don't own microsoft and i thought long and hard about buying it over the last couple of weeks and obviously in hindsight it would have been a good thing to do, is that they're buying nokia device business. i think that

>> microsoft is the a good story before nadella stepped in. it's a material change to the positive, we feel, and so i can see why the stock would be up. obviously, he needs to perform, given that the stock has moved higher, but i think that the, he's got a fairly easy fwoor hurdle and things he can commandeer and create value at microsoft. >> jon, bring you in on this one, because office for ipad certainly might be something people want to use but at the same time does it all come at the expense of the surface tablet and eastern windows? >> i wouldn't worry about the surface tablet, or windows so much at this point. one thing -- >> why not? >> one thing he said over and over again was interesting. he talked about cloud first. by implication that means windows not first, and he's talking about building applications on top of that. the surface tablet was meant to be a vehicle to deliver microsoft software. nadella is focused on using the cloud and this mobile strategy to deliver microsoft's software. doesn't mean he's not going to do devices but

in fact, nadella is now having to deal with the tug-of-war over strategy. cofounder bill gates initially disagreed with ballmer's land to make mobile devices. it did not help that their tablet was a dud. micro soft promoted a manager who has proven himself on both the business and tech sides. he's an electrical engineer from india who got his mba at the university of chicago. he spent 22 years at microsoft heard he ran the company's r&d unit before ballmer named him head of the server group. he reengineered that business that is now known today as cloud and enterprise. he is seen as someone who can help microsoft innovate faster as it tries to navigate the post-pc world. in the meantime, he can still count on microsoft's two big moneymakers, windows and office. >> so, what does the future of microsoft look like with satya nadella? i started by asking corey, who was outside the event here in seven cisco, whether nadella deserves credit for the company's push into mobile. >> i think his influence was felt in the decision to do things like this app. his ground

satya nadella.ne a day in your life without lotus 1-2-3? can.s, probably i >> and imagine a day without microsoft excel. i cannot imagine that. the best thing that microsoft is trying to deal with, in a world products maybe microsoft products, they decided to change that by offering microsoft office for the ios system probably through their office 360 program, their online program. they are offering to more people, more places, not have the closed world atmosphere they have had in the past. the debut of satya nadella as ceo of microsoft in a public way with his first public address, this is a guy who within microsoft was opening doors to other technologies. he was a guy who did the impossible. putting oracle databases on microsoft clouds offering customers the ability to use things like oracle, but one of microsoft's most hated rivals here in silicon valley. that nadellacant isya -- that satya nadella leading that discussion here. >> what kind of tone does nadella really need to set to separate itse

. >> so, what does the future of microsoft look like with satya nadella? i started by asking corey, who was outside the event here in seven cisco, whether nadella deserves credit for the company's push into mobile. >> i think his influence was felt in the decision to do things like this app. his groundbreaking decision and insistence that they offer oracle's database on the microsoft cloud to their customers was a kind of decision that this also represents, the notion of making an ipad -- one of the great strengths of microsoft is microsoft word and powerpoint and excel. those are applications unique to microsoft. making a decision to share this with an operating system, there are planning to beat the marketplace. it is going to strengthen them very directly. 30% of those sales will go through the itunes store. that is a very aggressive decision. absolutely, this started under steve ballmer, but it also started with nadella showing the way of the future. >> obviously, office is one of microsoft's biggest products. i just spoke with bret taylor the former c

with michael, you worked nadella before. quacks he is an incisive thinker and he loves to fight near turn opportunities -- near-term opportunities within the company. i agree with cory. this makes absolute sense. it could probably drive $3.5 billion in the next 12 months to the microsoft hotline. has an immense challenge in terms of changing things within the culture of microsoft. you really have to go after those blue ocean opportunities ahead of times from where the competitors are today. that remains to be seen. quacks or wonder about microsoft's own mobile devices. cory, what are the plans for tose yeah co. is satya going continue to focus on the ? oducts >> i think the reason they slept this announcement apart from their big build is that they do want to get a lot of focus on this ios product. the estimates out there talking about billions of dollars in revenue area to big art of this is not so much about the consumer. well the consumer will certainly , ind some money on this think really what this is is trying to get b

it is the most expensive for nadella yet. he was named ceo just last month.hnson is in new york. with me here is ari leavy. who is mark penn? >> a longtime political strategist. he was a ceo of a pr firm. a big global pr firm. a longtime friend of the clintons. worked on hillary's campaign, and failed campaign in 2008. he was brought on at microsoft to help a strategy which is the broad term that can mean anything. he is best known for do not get screwled campaign. >> does he have what it takes to refocus microsoft's business strategy? >> it has been important to microsoft. that guides it how to market and tell the message. you could see this in the shakeup that this is something they really wanted to get right and do it the way that satya nadella want it done. >> some of the biggest names we have become familiar are on the chopping block. what do you think of some of the big departures? >> it seems pretty evident it is linked to the whole services. he was one of the finalists. he was a big name. he was a longtime cisco executive eric he was a ceo of skype. -

it's subject that i raised with with satya nadella before, before he became ceo. he's not as window centric as steve was. the key is how much they make available on the ifripad for fr. they're a bit late to the party. >> for free? >> yeah. you expect to see some available for free and then they're going to try to pull you into office 365 into upgrades to pay. they have to make something available for free for this to be much of an opportunity at all. apple's productivity software is already free on new ipads. >> apple's productivity software there is not excel, it's not

satya nadella is running the cloud business. microsoft is in a lot of businesses and lacks a certain degree of focus. i think that might mean a closer focus on the cloud. perhaps the shares does not sound like they're off the table. spinning off xboxes, consumers. they can contractually keep a lot of the things they like about that. but spin it off somehow. >> what about the fact that nadella is an insider. >> that is the question. did they categorically decide a year ago to not get rid of the stuff? or is he going to say let's have windows office, xbox and the cloud in mobile and when we separate them? contractually agree to use each other's work. >> we will be watching. thank you. up next, we are joined right here in the studio. he is often called the $700 billion man. the architect of art will be here. ♪ >> welcome back to "bloomberg west." jerry brown just made it official, announcing he is seeking a record for the term. he will be running against neel kashkari. he's also called the $700 billion man. now again republican can

satya nadella gets his turn in public today. is the nadella effect priced into microsoft shares?appearance since taking the job in just a moment. in just a momed opened some credit cards in her name. checking her experian credit report and score allowed her to better address the issue...and move right in. experian. to manage your money.r guy around 2 percent that's not much, you think except it's 2 percent every year. go to e*trade and find out how much our advice and guidance costs. spoiler alert. it's low. it's guidance on your terms not ours. e*trade. less for us, more for you. we are the thinkers. the job jugglers. the up all-nighters. and the ones who turn ideas into action. we've made our passions our life's work. we strive for the moments where we can say, "i did it!" ♪ we are entrepreneurs who started it all... with a signature. legalzoom has helped start over 1 million businesses, turning dreamers into business owners. and we're here to help start yours. >>> in just a few hours microsoft's new ceo satya nadella will speak at an event amid rumors we may be seeing the debu

. >> reporter: analysts have been concerned nadella might act too much like a company man. this news suggests otherwise. >> he's willing to change it up. not going to be a core redmond insider. this is a good example strategic changes could be on the horizon. he's not afraid to make hard decisions. that's why you're seeing investors cheer this move as it seems like it's a sign of things to come >> caller: the suite in redmond is thinking differently. take home, expect a very different microsoft as it transitions from steve balmer to sacha nadella. >>> ceos are feeling a little bit better about the u.s. economy according to a survey by the business round table. the chief executives are more optimistic on hiring and capital spending over the next six months, but they see economic growth rising a tepid 2.4% this year. >>> those ceos and investors all around the world will be keeping an close watch on the federal reserve, which kicked off an important two-day policy meeting today. this will be the first meeting headed by new chair janet yellen. investors are eager to get guidan

analysts say nadella realizes mobile is the future - and will bring a significant revenue boost. to the tech company. some tech watchers wanted microsoft to create touch- optimized software on one of its own products, such as the surface tablet. but most think the apple partnership marks a progressive turn for the company. "microsoft has finally made the decision to expand beyond the pc and beyond its own windows environment to embrace the dominant platform." that was michael krigsman, analyst with asuret. he points out that microsoft does not own the apple operating system, which caused the long delay in the software release. microsoft shares rallied to 39.36 thursday. one day after the ceo of gm tells customers its safe to drive cars recalled for an ignition switch issue a federal court is agreeing to hear a case that could force the car company to tell customers to put the cars in park. a federal court in texas will take on an "emergency motion" april 4th. an attorney representing a number of clients argues drivers are at risk. gm is offering loaner cars to customers. wednesda

nadella has to figure out how best to exploit it. >> tweet me at bbc, aaron. i've got to go.ts today coming up next. bye-bye. microsoft is operating very much yo, untamed larger than life, move fast fruit flavor, watermelon, blue razz green apple. your taste buds dancing. it's the jolly rancher, we make it happen. untamed fruit flavor. jolly rancher. >>> hello there. this is "sport today" on the bbc. coming up to you india's cricket boss is ordered to step aside while a corruption investigation is held. >>> slam dunks. they know how to score baskets, but the 76ers could soon be nba's biggest losers. >>> try to beat me. nikka goldberg is fastest in malaysia. >>> welcome to the show. india's supreme court ordered the country's cricket boss to step aside on friday. he will be kept out of the role during the investigation into corruption claims during last season's indian premier league. he will be temporarily replaced as the head of the board of control for cricket in india by tech team great gavastar. last year indian police arrested several players for allegedly spot fixing. t

nadella himself saying this is only the beginning. expect more announcements in the coming weeks as he rolls out his innovation agenda around mobile and the cloud. the next announcement expected next week at microsoft's build developers conference. that will be centered around windows. back to you. >> let's give you a look at what's going on in the united states. present income spending is out at 8:30 eastern. incomes forecast to rise 0.2% and spending 0.3%. the final report on march consumer sentiment at 9:55. kansas city fed prettiester george speaks at 1:15. blackberry reports earnings before the opening bell. the ceo john chen will be speaking to cnbc in an exclusive interview on "squawk on the street." don't miss that. it's at 11:00 a.m. eastern. there you go. japanese inflation, meanwhile, was up in march for the ninth consecutive month. household spending fell 1.5% in february from the year before. that could be blamed on snowy weather and tightening ahead of the april 1st tax hike. adam coal joins us. actually, adam, you've go

and it will include the first public remarks by ceo nadella since his appointment last month.n is taking a closer look at what we might be able to expect. >> in its first press event since taking the helm, ceo nadella will talk cloud later today. he's expected to unveil office for the ipad. microsoft is saying it will involve news focused on the intersection of cloud and mobile computing. the new service will reportedly look and feel similar to office for iphone. include word, excel, powerpoint app and require an office 360 subscription for editing. analysts believe office for ipad would be a multibillion dollar career opportunity for microsoft. in addition, it will be the first chance to get more details about nadella's overall vision and strategy since taking over for steve bomber last month. the event kicks off in san francisco at 1:00 p.m. eastern and i'll be live outside with all of the details. back to you in london. >> richard, what are your thoughts here? clearly, it's been a struggle for microsoft the last few years. what strategy would you like to see unveiled today?

microsoft ceo satya nadella making headlines today.g ago that former ceo alan mulally was rumored to take over that role. still to come, jeff flock talks with ford executive chairman bill ford what the future holds for mr. mulally and the automaker in general. ♪ i've always had to keep my eye on her... but i didn't always watch out for myself. with so much noise about health care, i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile, not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still gonna give me a heart attack. innovations that work for you. that's health in numbers. unitedhealthcare. so our business can be on at&t's network for $175 a month? yup. all 5 of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line, anytime, for $15 a month. low dues, great terms. let's close! new at&t mob

does this mean something to satya nadella?res much about this move to cloud subscription, a has beenatya nadell the last couple of years working on, the move to the cloud. idisagree a little bit -- also think about the consumers and the $3.7 billion consumer makee revenue and had we sure this is protected and if they can move that, even a portion of those users can drive all of that revenue to the move to subscription. both sides of the story drive to corporate and make it more relevant, part of the move and protect where they can on the consumer side. >> here is one thing i am wondering about. $3.7 billion in consumer revenue. how valuable is that to microsoft? versus thehis get enterprise revenue? >> right now, the street gives it zero, no value whatsoever. >> why not get rid of that, why don't they become an enterprise business? and allbout the xbox the questions with office and if it goes to the ipad. >> they can do that but they cannot get rid of that. >> they can get rid of the debacle that has been the surface. >> this

one of the reasons we chose satya nadella as the new ceo is he has a strong technology background.tands exactly what needs to happen to move microsoft forward. >> that means competing in the cloud. microsoft's website says it currently controls 50% of the market for enterprise class storage. amazon, google, and ibm mostly controlled the rest. thompson says he has the goods. >> microsoft has demonstrated an ability to provide a cloud-based platform on which others can build applications. on top of that, office 365 is a very successful cloud-based application. i think the combination of those things provide the foundation on which microsoft can clearly grow its cloud-based business. the other dimension of microsoft strategy is focusing on how we become even more relevant to consumers. devices and services strategy launched about a year ago is very much a part of that. it will be interesting to see how satya augments that as we move forward. >> thompson led the search for the new ceo. he talked to us about how the two along with bill gates plan to work together. >> the relationship be

nadella is pushing microsoft to get with the times.esterday he issued his first public product announcement, office for ipad and free apps for apple and android phones. >> the goal for us is to provide the applications and services that empower every user across all of the devices in all of these experiences. that is perhaps the job number one that we do, which is to empower people to be productive, do more across all devices. >> guess what, it's a hit. word for ipad has become the most popular ipad app in the u.s. just five hours after going live. >> is so right for the ipad. this was not a quick port. they spent a lot of time and a lot of money getting the precision and making it apple-quality product. >> let's get some real-world mba-type perspective. , right? uses excel >> office, you have got to get that. >> overnight it was very respectful -- >> satya nadella unveiled all of this. of course, it wasn't his idea. steve ballmer cooked this up before he left. >> but there was consistency in the message to you is been saying mobile fi

nadella himself saying this is only the beginning. announcements in the coming weeks as he rolls out his, quote, innovation agenda. that's going to be involving mobile and the cloud. next announcement is expected regarding windows next week at the company's builder developer conference. kelly, back to you. >> morgan, thanks very much. i definitely want to get thoughts from the panel here. john fort, look, we discussed this in the weeks leading up to this event as to how much nadella was going to have to give away for free and what this is going to mean for microsoft. what is your reaction to the fact that, you know, you can only basically download or view, that is, content on these new microsoft office -- on this new software. if you want to edit or create, you need to be an office 365 subscriber. >> yeah, kelly. he's not giving away much, which means they're not going on the backs of this particular announcement going to launch into probably being the most popular productivity apps in apple's app store. this is really geared toward b

. >> nadella, the reviews on his presentation yesterday, out of the mom and pop paper, nadella makesfirst impression. you could ask for worse press. >> i liked it. notice the deep-sixing of the term "windows." windows is out the window. it's about office. now what's next? how about getting rid of the windows phone? going a gnostic. android, that's next. going to create a higher value for microsoft. >>> all right, let's move on. of course, it's been a big week already for ipos not necessarily a good week certainly given the debut of king, but as we wrap up that week at the nysecbs outdoor america is going public. it will trade under the ticker symbol cbso, the outdoor advertising unit of cbs offering 20 million shares at $28 apiece, that was at the high end of the expected range that valued the company at $3.36 billion, and cbs' ceo les moonves and jeremy male will join us on the set later in the broadcast. of course, they've owned outdoor for a while. this has been in the works for quite some time. you got to remember it's selling about 18, 19% now. to the public. but it will be an e

nadella will come out and sell the new microsoft. the stock is up up up. ballmer is leaving? >> it is up because finally they are introducing a product for ios. office is going to be on your ipad and that will make a huge difference. it is recommending that this is a multiplatform world for computing. >> you mentioned keynote when we were on break. apple has become too cluttered, a real opportunity for microsoft. >> iwork was introduced as a way of taking away is this from office, but now keynote and some of the other programs, they have fallen way short. >> michael wolf, thank you so much. >> let's find out what the twittersphere thanks. ew. >> it's great, really? >> i think that is sarcasm there. >> i don't know. there are glitches -- >> we will see how it plays out. , thank you so much for joining us. >> exciting day. >> "in the loop" is next. ♪ >> good morning. it is thursday, july 27. we are live from bloomberg world headquarters. you are "in the loop." i am alix steel, in for betty liu is -- betty liu. president obama met with pope francis. said euro

now the big question for investors is nadella up for the challenge. what are we going to see in the developer conference in a few weeks? you're seeing the optimism in the stock -- >> sorry to interrupt. everyone keeps saying that. how are they going to turn around the mobile business? their market share is just above mine in the mobile business. do they have to turn around the mobile business or just, i hate to say it, accept defeat? >> i think to some extent, i mean, it is going to be a mt. everest-like challenge to see growth on the mobile side. they're going to give it their all. but i think, you know, a year, year and a half from now, i think that's where they, you know, could ultimately admit defeat. at least with that nokia, they have 7 billion reasons to make sure this thing at least tries to work. and that's going to be nadulla's biggest challenge, not just the customers but for investors, and that's where he really faces an uphill challenge. >> today, microsoft stock is the biggest gainer there on the dow but in terms of your price tag, you'v

satya nadella clearly pitched himself for this job with the idea of this culture change. i think the fact that bill gates has come in to be a bigger part of the company is smart on satya's part because he can't change the color -- the culture without bill's backing. i think the interview that bill gates just did where he talked about the windows and officer a essentially being over as driver is a really important touch point for t satya's -- >> this product doesn't really change the margin structure, right? >> not at all. >> the margins are much lower than pcs and you don't have the pricing power if you will, so what do you do with the stock? is stock is up so much on this news. >> here's what it does. it changes the narrative. this goes from a company ruled over as a dictatorship, with all of the silos, where divisions were competing to kiss the ring. now the street is starting to open up to the possibility that these guys are going to do things differently. >> they're still dependent on pcs. >> that's the whole -- it's about hope. it's about hope. and the fact that this

talks about being named technology adviser to nadella.he sense he will be doing there? >> there's a lot of debate within microsoft about his role and how much impact he's going to have on nadella or if he can be his own man, his own ceo. i think one of the difficulties is gates is not been deeply involved in the internet space for several years. he's been very busy doing this philanthropic stuff. the question is is he up to speed at what needs to happen at microsoft and how much impact will he have on that change. i think that's really what's going on at microsoft, is where he does fit because he is bill gates and, you know, even doing this media tour is what he's doing, it's like bill is back kind of thing. it's still -- he sucks up all the oxygen in the room away from the real leader in the microsoft which is presume difficult satya nadella. >> i read something different in this interview. he put mark zuckerberg in the company of himself and steve jobs when talking about innovati innovation, saying zuckerberg is a product guy, steve was

expect microsoft to roll out more new products and updates to older ones in the coming weeks in what nadella is calling his innovation strategy. but the question, of course, will be whether microsoft can deliver on these big ideas to catch up with competitors like google and amazon which are already firm leaders in cloud and in mobile. for "nightly business report," i'm morgan brennan in san francisco. >>> and another set back to tell you about in housing. pending home sales in february fell .8%, making eight months in a row of declines. you guessed it. cold weather, higher lending rates and a lack of available homes on the market get the blame this time for the latest drop. also today, freddie mac reporting that mortgage rates ticked a little bit higher last week, with 30-year fixed rate loans now going for 4.40%. >>> ty, some good news about economic growth and a fresh read on gross domestic product in the final quarter of last year. shows the economy grew at a pace of 2.6%. .2% better than a reading from just one month ago. and some positive news out of the labor market as well. the numbe

the generation of new leaders and we were talking about zuckerberg earlier, but you have marissa nadellachael dell taking the company private. what is your take on the generation? >> i think our superstars. thingse next 10 years, will happen that people cannot anticipate. just like 10 years ago, things we did not see coming that we now take for granted. technology will not slow down. >> in terms of people like satya nadella, who are not as well known, taking over a company that has had so many big personalities -- bill gates, steve ballmer, is it much harder for him to prove his success? >> when you have an established theyny like microsoft, have so many organizational habits that have been formed over a long time. >> are they still innovative? >> i am sure there are pockets of innovation that still happen, but it is so large that they probably get overshadowed by the mainstream vector the whole mother ship is on. when you have had these really big long-term businesses is very difficult to innovate in a way that can really replace or supplant that. >> at that point, what should be done?

satya nadella may unveil a microsoft office software suite.estop the biggest decliner on the s&p 500 down 4% this on nups that walmart will allow shoppers to trade in used video games from anything from groceries to gadgets across its 3,100 stores starting on march 26th. and general motors naming jeff boyer of vp of global vehicle safety a newly created position this in the wake of the recall of 1.6 million vehicles for faulty ignition switches leaded to 12 deaths. >>> the federal reserve begins its new-day meeting the first for janet yellen and many are expecting a shift of communications, and excited about this one. let's get to rick santelli in chicago. hey, rick. >> hi, sara, and thank you. i'd like to welcome or special guest professor ken rogoff, thank you for taking the time today, sir. >> thank you for having me. >> you encompass two areas that are going to flow with the topics i want to us and and that is education and economics. ro if you have ten kids in your class and they all get a 67 on an exam you would probably have to grade on

willeo satya nadella unveil his vision for the company next week, when he unveils a version of officele ipad. for more on microsoft and the rest of the tech sector, i am joined by the s&p capital head of tech sector research. interesting about microsoft is that so many people sort of got caught in that value trap for so long. he started not go anywhere. when you look at the longer-term chart, going back to 2000, it may be starting to break out from those levels. do you think we are seeing that long-awaited microsoft breakout? >> i do not know if we will see a breakout per se. they have said the stock has not done anything in a decade. some positive appreciation is getting people more excited. clearly, we are seeing some change at the company. maybe that will portend better financial and stock performance. >> what do you think of the latest change potentially happening in the next week, with office for ipad? >> this has obviously been talked about, yet not confirmed at this point. microsoft clearly needs to come up with a better strategy as it applies to mobile and as it applies to tab

in terms of the management changes we will see under satya nadella, how much more change do you anticipate? >> i think we have seen very logical changes. tony bates was the logical choice. not likely to stay. i think the interesting question will be, are there people brought in externally to complement the leadership team and when did he make the leadership move? >> managing director of madrona venture group. later today the israeli prime minister is visiting silicon valley and will be sitting home with tori johnson for an interview. be sure to tune into the at 5:00on starting eastern on bloomberg television. >> lots of discussion this week about drones. reported interest in the market. we will ♪ have full details coming up. ♪ >> i am jon erlichman. there has been an list talk about drones and commercial use of drones from the potential amazon using them to deliver stuff to you to the possibility of facebook by yang died dynoerospac we are joined by the president of the vehiclen for unmanned systems. he joins us from washington. thank you for joining us. we have become very familiar with t

satya nadella takes the stage for the first time as ceo.to tim armstrong about his plans to shake up the online ad business. but first, your bloomrg

. >> this is as much a referendum on how satya nadella did in his debut than anything else. >> the mancashmere hoodie. somebody challenge me on twitter to wear a cashmere hoodie. you think i should do it? >> next monday, erik schatzker in a cashmere hoodie. we have to go shopping. >> in the next hour, you will hear from the ceo of blackberry, john chen. the company just recorded a smaller loss than predicted. ♪ >> this is "market makers." >> taking on the tea party. big business wants republicans to push issues like immigration and tax reform. more than half of americans say it is time to move beyond the debate on obamacare. will the gop listen? you are going to hear from a member of the house republican leadership, live. >> ceo john chen of blackberry is cutting costs, revenue in the fourth quarter still declined. how the company plans to return to profitability by 2016. chineseands of rich citizens are getting visas to move to the united states. the catch -- they have to promise to start businesses and create jobs. it is a friday morning. i am erik schatzker. >> and i am scarlet will

you see satya nadella has a focus on that.ocus is to be the largest player in the world. >> do businesses get the cloud yet? >> big businesses get it. they are clever people. they pay the cio to think about strategy. they are consuming it faster. small businesses are beginning to become aware of it but sometimes the incumbent suppliers to small business itself need to transition their business model and that is hard. oillast telcos are like the tankers were they get it and move it. to get to market fast, it is hard to do it themselves. --ee large telcos and excise there basing their product on our infrastructure. >> one client is the u.k. government moving a lot of what they doing to the clapboard -- to the cloud. >> they see the strategy. they're going to move to the cloud. procureo see a need to digital media contracts. they're working with microsoft and dell to the ploy a specific government cloud of program which has added security to provide services to the government. >> what does that mean in the post-snowden era? do th

nadella wants to expand the market share to an even larger audience and different operating systems.oining us now is radio free mobile founder richard windsor. >> good morning. >> they have got to do this. they have got to make sure that they get this product, office, out to a new audience. >> yes, it does. a couple of years ago i think it was a bit more of a question. the question is, have you cannibalized windows sales? now the market is better defined and it is pretty clear that people who have got ipads are not going to buy a laptop anyway. that user is effectively lost unless you put office onto the ipad. that is really what is going on here. spreadrosoft to its applications across other platforms. experienceke the much more rounded for everyone who uses a range of devices. it is not going to move revenues in any direction at all, but at the generated bit more loyalty. >> -- generate a bit more loyalty. >> how do you price these apps? that you is proposing basically downloaded for free, you can look at the documents, but to change them, to write in a word document, you would get

nadella making this big announcement.icrosoft moving onto platform like ipad, what is is due for companies like ever load. companies that have filled a gaffe that -- filled the gap that microsoft of the has left. -- that microsoft has left. how does geopolitics affect germany and china and russia? we're going to discuss all of that during the program as well. tech a big theme running through the polls today. i can tell you that. >> guy, thank you so much. i want to see guy versus hans versus ryan in f1 driving. this guy that shows what i'm going to work on. >> we would just give them a car and see what happens. we will be back in a couple of minutes. the genes are identified using a proprietary computer algorithm from one of the most extensive databases in the business. >> we have established a platform that is a combination of plant science and cutting-edge competition technology. we integrate them together and create a synergy that helps us understand how the plant is operated. then we can leverage this understanding in

satya nadella made a presentation of office boeing to the ipad. they will be focusing on apps. up 1.7%. liz: microsoft is trading above $41 a share. we vane seen that price in years. >> when you talk about microsoft we're really looking at some tech stocks, liz, focusing on nasdaq up over 1%. micron technology another great, great performer, up 8% ahead of earnings later in the week. david: may be that biotech is turning around now, nicole. ibb, sort of the biotech etf. that is doing very well today. >> biotech had a tough turn, beaten undo. folks are looking to biotech to see whether that is turn in the market. we're looking at nasdaq biotech index up really great, up 3.1%. liz: we should mention there are headlines moving right now regarding jpmorgan. i want to read these to you guys here. a u.s. district judge, george daniels, in manhattan issued rulings in three lawsuits, nicole, three lawsuits over the "london whale" losses, remember a year-and-a-half ago. >> right. liz: nearly now 2 1/2 years ago. jamie dimon, doug bronstein have failed to win dismissal of claims against