-- satya nadella. is howsage of the book you connect empathy with technology, in the workplace, and with society. what does it mean to you when you say i am an empathetic leader and that is at the core of what i want microsoft to be? came to thisy i perhaps havingt more of a conversation around empathy as being super important , is what itbusiness is all about. it is pretty straightforward. when you say, what does a company like microsoft have to do to stay relevant, we have two meet the unmet, not articulated needs of customers. day we to make sure each are in touch. the challenge of that, being able to meet unmet needs of customers, is that you cannot just say let me listen to customers. you have to be much more of an active m listener. if the source of innovation is ,mpathy, where is that muscle dhe core of how one leaves withins for the comes to be in the first place, i think that is your life lessons. compartmentalization does not work. you are who you are because what happens to you throughout yo

emily chang sat down with satya nadella.ya: to us, one of the key things, i guess -- there is some truth to it. we will always invest in hardware to create new categories. emily: would you ever make a phone again, and under what conditions? satya: at this point, what is needed is for us to not be obsessed about categories that are well served. not at least on current rules. what is considered a phone today will be very different in the future. is it a mobile device? yes, it is. it is untethered. it is battery-powered. you wear it on your eyes. what is the future of those kinds of devices. to me, microsoft will always be in the end to end computer experiencing business, but our goal is to invent categories and reinvent categories. emily: you talk about three big strategic bets, mixed reality, ai, and quantum computing. on the issue of ai, are you at all concerned that facebook, google, apple could outpace microsoft on ai? satya: to me, what is microsoft's approach will be all around how do we take ai. it's not about any power

path satyaosoft nadella and the godfather of indian fitness.all of that still ahead on bloomberg businessweek. ♪ julia: we are back with bloomberg businessweek editor in chief, talking about chinese companies always happy seeing the government to foster, subsidize, and protect. now they are laser focused on electric vehicles. >> we spent a lot of time on this, china growing their own homegrown dominant industries. it feels like it is when they are really going out for that. china is the biggest buyer of electric vehicles. in 2015,assed the u.s. over one million expected to be sold in 2018. they have a really ambitious target of 8 million by 2025. ambitious goal, and it is really being pushed by the government. they see this as a the next industry. the key to china's dominance, they look homegrown to develop the best technology and really dominate their own field and look to export it elsewhere. i think we will see exactly the same thing. carol: we talk about tesla and elon musk disrupting the auto sector but it might have to be a chinese compan

megan: in his book, nadella candidly outlines the changes he has made as c.e.o.s the company today. satya: success is not built by moving from hit to hit. megan: from evolving with the tech industry to company culture, that is ahead in this conversation with satya nadella.

satya nadella, everybody. we'll be right back.

satya nadella is joining us. but last night, last night was th big alabama senate election. and we're going to get to that, but first, major news from the white house. someone just got fired, but not the person you were hoping for. >> all right, we do have breaking news about a staff shake-up. >> omarosa manigault newman, better known as omarosa to people who like to watch "the apprentice"-- she will be leaving the white house effective january 20. >> john kelly was tired of it. he was tired of all the drama. kelly confronted her. she was very vulgar, very-- she was cursing. she tried to go see the president. security alerted general kelly. he came back down, told secret service to take her out of there. >> wow. >> she was escorted off the property. it was very ugly. it was high drama. >> trevor: oh, yeah! ( laughter ) the trump administration is having its season one finale, people. i'm loving this. ( laughter ) that is so wild. you can imagine being there when general kelly was fighting with omarosa. he was probably like, "goddamn! this is some bull! i'm sick of this crap!

in the debrief, megan murphy sat down with microsoft ceo satya nadella.ow he filling the considerable shoes of bill gates and steve ballmer. megan: this is the best part of my job. with him, i was lucky and had a pretty clear place to start. he published a book this year called "hit refresh." reading the book was fascinating to me because -- i highly recommend people read it -- it is both sort of a tale about his life. i don't think people really understand, being an immigrant, obsessed with cricket, and his wife and disabled son. in his book and how he molded himself to be an executive is about empathy, putting up with the epic core of a corporate culture. particularly one that has gone through that. that's what i wanted to talk to him about, when companies are being expected to carry more and more of a voice from everything from a transgender bathroom been to immigration policy, to infrastructure, ai. how do you wield that voice? how do you be that leader both internally and externally? julia: you talked to him about listening he said the importance . h

carol: we both love the story that megan murphy did with satya nadella.thy in the workplace in his new book. empathy in life. it's really important. julia: the importance of empathy in leadership. a man with pretty big shoes to fill as far as microsoft is concerned. more bloomberg television begins now. is this a phone? or a little internet machine? it makes you wonder: shouldn't we get our phones and internet from the same company? that's why xfinity mobile comes with your internet. you get up to 5 lines of talk and text at no extra cost. so all you pay for is data. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit, or go to xfinitymobile.com. ♪ rishaad: coming up, the future of business and finance in asia. >> i believe, when trade stops, we start. rishaad: the case for stimulus in japan even as other central banks pull back. >> here, there is some kind of deflation in the mindset. >> we look to beijing to bring the pressure to bear on the regime in pyongyang.

book,, nadella candidly outlines the changes he has made as c.e.o.nes the company today. satya: success is not built for moving -- by moving from hit to hit.

. ♪ megan: when satya nadella took over as chief executive officer at microsoft, he was only the thirdead the company, behind founder bill gates and the charismatic steve ballmer. satya: i grew up in the company that bill and steve built. and i am very proud of it. megan: in his book, "hit refresh: the quest to rediscover microsoft's soul and imagine a better future for everyone," nadella candidly outlines the changes he has made as c.e.o. and what defines the company today. satya: success is not built by actually moving from hit to hit.

. ♪ megan: when satya nadella took over as chief executive officer at microsoft, he was only the thirdy, behind founder bill gates and the charismatic steve ballmer. satya: i grew up in the company that bill and steve built. and i am very proud of it. megan: in his book, "hit refresh: the quest to rediscover microsoft's soul and imagine a better future for everyone," nadella candidly outlines the changes he has made as c.e.o. and what defines the company today. satya: success is not built by actually moving from hit to hit. it is the batting average. megan: from navigating the evolving tech

. ♪ megan: when satya nadella took over as chief executive officer at microsoft, he was only the thirdbehind bill gates and the charismatic steve ballmer. satya: i grew up in the company that bill and steve built. and i am very proud of it. megan: in his book, "hit refresh: the quest to rediscover microsoft's soul"

julia: gracing the cover of our good business issue this week is microsoft ceo satya nadella.: we talked to our creative director. >> obviously he is a very powerful man, he runs an enormous company. we try to humanize him in this, and not put him in a formal business light that you are used to seeing him. he chose his own wardrobe. this is his casual attire. he is sundrenched and leaning against the railing. he looks fairly content. we thought it was a nice feeling. carol: in a company like microsoft where you have two iconic leaders so identified with the coming, you have to -- with the company, you have to make your mark, it's not always easy to follow. he is making his own mark and he will be a different kind of ceo. >> one of the takeaways from the interview, he is very empathetic. i think there is also the fact that this issue is the good issue, and it made sense to play this up. the headline is he is the empathy officer. carol: up next, reasons to be optimistic about raises. may be aboutsney to becoming the walmart of hollywood. carol: this is "bloomberg businessweek."