withis erickson, competing nokia. they say the negative trends from the first quarter intensified.king further actions, initiating cost-cutting and targeting. is the ericsson ceo so pressured by ambassadors? he is trying to rebalance ericsson. net sales missed what the markets actually expected. he will be under more pressure today? >> i think he will. he has been with the company as ceo for 6.5 years now. ring that time, he has not delivered much of a share price gain. it is basically flat during his tenure. there have been rumblings over the past year. essentially, he is under pressure to deliver better and more cost cuts to the company. it is a very competitive market. to remain atid ericsson? are you fearful that institution shareholders could harry you from your position? >> we are doing lots of transformation. changing the corporate structure. we are on the forefront of 5g. >> will you stay to see it through? >> i think my job is to continue . that is what i'm focused on. >> microsoft flying high on the cloud hear the company reported fourth-quarter profits topping analysts e

if you remember, nokia did something similar. huawei is just copy aning nokia.used misleading shots in advertising. tf course, the p9 is mean to be their flagship camera phone. this does not look very good for huawei. coming up, turbulence in singapore. we might seen the first falling assets in seven years. we will ask why. this is bloomberg. ♪ anna: welcome back to "bloomberg markets." david: thanks, anna. a pretty good hand up at this point for entering the last few hours of trade in asia. we are up about pointing percent -- we are up about .3% in asia. just about every single sector group is higher, though we can see weakness on this japanese heavy industries. some of these machinery makers, for example. that is the story across the asian equity markets. volume thatng at is still moving. the dollar-yen is holding at 2014 levels. when you look across asset classes, it is basically the same story. either mixed or trading sideways. gold is at 1367. so, at least as far as precious metals our concert, a decentbid bid here. but energy is not much higher. let's get

eso me nokia anoche. yo todavÍa estoy en un sueÑo.es humanos que tienen derechos, que hay que darles amor y cuidado. reportera: dice que pensar que su hijo pudo haber muerto ese dÍa, de no ser por la mala punterÍa del policia, le atormenta. >> yo estoy en un duelo, me siento en un duelo. yo le pido a dios que esto no sea verdad. porque yo llevo meses luchando por Él. ilia: un vÍdeo grabado por la cÁmara de una patrulla y publicado hoy muestra a un policÍa blanco en austin, texas, empujando a una mujer afroamericana al suelo en una detenciÓn vehicular. tambiÉn se de a otro agente diciÉndole que la gente negra tiene tendencias violentas y que los blancos estÁn justificadamente temerosos. abrieron una investigaciÓn criminal contra los oficiales. una iniciativa que busca recuperar la transparencia en mÉxico estÁ dejando muy mal parados a varios polÍticos. una audiencia de operaciÓn en ver en venezuela debates y leopoldo lÓpez debe ser liberado. crest presenta pregunta, y se honesta...¿mis dientes están amarillos? ¡haz la prueba de la serv

-- of nokia.the -- developing story we're following, facebook says it may have to pay up to $5 million to the tax man. facebookas asked officials seven times for documents related to offshore tax strategy. according to the irs, facebook has only provided some documents . coming up, it is the height of travel season and yelp is making a big set on tourism. we will tell you which company is their new partner, next. we will bring you all are best interviews from the week. we caught up with yahoo! ceo marissa mayer right after her for $.8 billion deal with verizon. ♪ emily: peach, an online market for tourism activities, is seeking to become the opentable for experiences. the san francisco-based startup has announced $10 million in new funding, backed by the likes of the twitter ceo jack dorsey, eric schmidt, andy trulia founder. the four-year-old company also provides software and just ain't, a new deal with yelp. -- inked, and you deal with yelp. -- a new deal with yelp. what does this mean? >> peop

numbers out of erickson, the wireless network company competing with nokia.e saying the negative trends from the first quarter intensified. they are taking further actions, initiating cost-cutting and targeting. >> why is the ericsson ceo so pressured by ambassadors? it is a changing world. he is trying to rebalance ericsson. net sales, 54.1. that missed what the markets actually expected. he is going to be under more pressure today, won't he? >> yes, i think he is. he has been with the company as ceo for 6.5 years now. during that time, he has not delivered much of a share price gain at all. it is basically flat during his tenure. there have been rumblings over the last year. essentially, he is under pressure to deliver better and more cost cuts to the company. it is a very competitive market. >> are you set to remain at ericsson? are you fearful that institution shareholders could harry you from your position? >> we are doing lots of transformation. changing the corporate structure. we are on the forefront of 5g. we are going into new areas. >> will you sta

scarlet: what do you think microsoft learned from the experiment with nokia, partnering with it, buyingt, shutting it down? cory: it was a painful lesson, to be sure. it was a big whiff and it expensive. linked in. was with the disaster of the nokia thing, they go and do linked in, another giant technology acquisition. is not a lesson that they have taken away from this. but they also see they are clearly focused, much more on the enterprise microsoft has had with this thing. it is linkedin and microsoft's focus. they are from is on enterprise, moving that way. oliver: thank you for joining us today. we will go through the tech earnings. scarlet: emerging-market stocks climbed to eight month highs. a chart you cannot miss ♪ scarlet: emerging-market stocks climbing for the first time in nine days, but holding near eight-month highs. in my chart, i want to show you how they have gone on a tear once the dust settled from the brexit czar. the blue line shows the etm. the white line measures demand for that, the number of stocks outstanding on this particular etf. the plunge in long-term rat

he had a time getting away from the nokia authorities. authorities. louise: we all had fake identities. my name was maria. i did not know my name was louisa. dutch collaborator with a lot of screaming. my brother hit in the corner. we were holding onto each other or dear life, scared. we never heard anybody scream at us. what our reals names, and we didn't know them, so we set our faith identities. -- fake identities. but they did not like my father's papers. it was not always perfect, and they took cam. of the war,the end of occupation, there was no more trains going east. the railroad tracks had been bombed. makeshiftthrown in a prison in the middle of amsterdam, a school. and one night, he tried his door and the door was open. and then he walked in the hallway and walked all the way to the front door, and that was open, and he walked home. they were organized anymore. if the people had picked them up cold -- kill the people in the jail, there and there, they would have come looking for him. but he came home. a couple of times something like that ha

the last was to get into the cell phone business, with a purchase of nokia's phone business, one of the most bone headed acquisitions in history. it precipitated a 7.8 billion write off years late other. it would have been better to set that on fire. but, as i always say, what matters is the future, not the past. and i think microsoft's growth rate is accelerating rapidly because of this cloud that is paying off. of now, as i said, the previous quarter was a widely-panned disappointme disappointment. i got to believe that microsoft's really making real progress to the point where i think it's selling at 16 times its likely earnings in the year 2018. that's how you value these growth stocks. you don't look at them right now, you look at them in the out years. microsoft is still, even today an outstanding stock for anyone who wants a fairly decent risk/reward ratio. in an era when there are precious few rates to get income, microsoft after this incredible quarter i think represents a strong opportunity. how about facebook? the social media king ping sloesed at $122. these are amazing mark

the decline of the phone business once they accepted they could not take the acquisition of nokia and bump into being a big player in phones. the other challenges have to do .ith the enterprise with a linkedin acquisition they announced, they are hoping to boost that in the long run. insee continued progression the acquisitions and the challenges around these and trying to figure out how to grow that enterprise software they called dynamics. cory: 16% growth in search. it is tied to the new windows operating system. act toiving search being, so eating is suddenly working. being -- bing is suddenly working. emily: there was a quick reference made to the linkedin deal, saying they expected to close the second quarter. what should we be watching for as this deal closes? after that, how linkedin is integrated into microsoft. frank: the technology folks will be excited that investors will take a while to see results. the first thing they have to do is not break linkedin and then figure out how to integrate it while assuring other partners and other partners that they are not going to mess

it acquired a phone business from nokia and also some job shuts were they did some cost-saving there.see a slightly positive performance in the pc division as the cfo pointed out. this includes the windows and xbox products. those sales fell but it was slightly better than the estimates, so the net is in the positive. in terms of the takeaway from the major wall street investors, one has this to say after the report came out, it was comforting, he says, the key underlying trends are in place, at least the long-term trajectory is intact. he said there was some concern last quarter but it appears based on the stock performances, though seven delayed and that could translate into a positive for tomorrow's trading. yvonne: more breaking news with nintendo. up next, donald trump gets the formal not to run for president as the gop candidate. we will be live in cleveland. this is bloomberg. ♪ ♪ yvonne: it is 8:30 in singapore just a half hour way from trading opening there. we will see how singapore trades in just a bit. you are watching "daybreak asia. " ♪ yvonne: let's get to the first wor

there was no single player that was going to drive that market the way nokia did initially for cell phoneshat put arm on the map. apple is talking about it. google is talking about it. samsung is talking about it but nobody has really driven that market yet. somebody has to. >> guy, as we think about softbank being the owner and proprietar of this business, do you see this more as a financial bet or do you see softbank wanting to use arm's capabilities for things like the robots it's building in house? >> i would think it's a combination of both. both financial reasons and also for strategic reasons. it's one of those things you look at and say, wow. why didn't i think of that? >> but on the other hand, this acquisition to me doesn't make sense unless you continue on strategy of trying to be everywhere and make a little bit of money off of every single thing that's smart that sells. so it's going to be an interesting needle for softbank to thread. they've got to not raise licensing fees so much that their partners think about going elsewhere, but at the same time, build on technologies in

so the sector whether it's competition, the nokia, obviously going to produce greater competition for them, that neutrality. investment in europe, what we saw last week was seven straight quarterly consecutive declines in sales. they were late to the party as far as restructuring is concerned. they announce thad back in april. they said they were going to cut the costs. they broke down the business into five separate areas to focus on that. the restructuring costs, that's impacted their margins. we've seen a number of shareholders come out and say time for a change here. >> he has been running the company for quite a while, it has to be said. >> also, it's always an issue of like when do the companies upgrade with the big networks. the next generation of the network upgrades happening. >> he signed the two partnership agreements with cisco. they are looking at separate avenues and there is hope there. but i think the point was just that they didn't cut costs enough. there are shareholders saying they need to strip out certain aspects of the business, whether the optical transport, the

microsoft, nokia, skype, do we want see apple taking shots for a chip supplier? probably not. >> should apple buy twitter? >> no. they should aggressively partner with twitter but don't need -- i'd be glad if they did, but they don't need to. >> anytime you can get yourself positioned to become that much more such within your own space, think how that hits the bottom line? >> like delta buying the refinery? >> that's a great example of what i want to make right now. because whenever we talk about acquisitions with apple we're talking about sort of lofty acquisitions. buy tesla, netflix. very pricey acquisitions. and much like delta buying the refinery. >> pay to play. >> and delta buying the refinery, apple should look outside of the high-priced tech world. they want to get into cars, buy gm or ford. six times earnings. yes, everybody knows i own the stock. still, six times earnings is a good use for cash and strategically gets them where they want to go. >> think quick about the passive versus active argument last week. kind of goes back to the stock itself. act

ericsson competes with the likes of nokia.y say the are starting significant actions to cut costs. sales number is coming up at 51 point billion krona. that is a touch below the estimate. in terms of any net numbers coming through, we have cooperating income -- so, the operating income figure. billion krona,e below the estimate of 4.1 billion krona. they are taking further actions, initiating cost-cutting and targeting. --tomers have come off a they have come off a period of heavy investment. this is something their rivals are having to deal with. customers are now spending a little bit less. this is a challenging revenue environment. what would they do with operating expenditure, that is a big focus for analysts. manus: the ceo will join me on "the pulse." the interview is set for 10:45 u.k. time. actually, that will be in "surveillance." anna: this was a company that was forced to reject the report from swedish media that they were inflating sales. manus: but they denied that. let's get to the latest edition. it is daybreak.

billion devices within two years to three years, the failure led to a strategy and which they bought nokia shut down and sold the business. the big headline for microsoft in the past quarter is the $26 billion purchase of linkedin, more than 84 times earnings, the highest earnings multiple of any takeover at at least $5 billion this year. we will look for color on that deal when they report earnings after the u.s. closing bell today. at what we might expect from microsoft in the report, cory johnson joins us. is the jury still out on the ceo's attempt to transform microsoft? >> he has shown significant changes in the business thus far. surprise, it seemed it would take forever to turn around like a battleship. they embraced mobility in the ways the company has not before. interesting to see how big their as googlebusiness stumbles to get into the cloud business and amazon has succeeded greatly, microsoft has been a strong number two in that business and you can expect that to grow. that will be the other focus and linkedin will get a lot of questions about how that will work and what they

the layoffs will be mostly in the phone division as they restructure following the purchase of nokia.ut 12,000 jobs. >>> and anyone who has watched the show for a while knows kendis is a big fan of international sports. he supported france. we're not sure why in the european soccer championship. >> arguably the greatest soccer team out there. >> who did they lose to again, portugal? >> can't get enough of cricket. i was writing down the score for the last five days. india versus pakistan. >> because the games never end. >> uh-huh. so england and pakistan just finished up a four-day cricket match. four day. but not everyone is as excited as i was about this one. >> look at that guy. poor man. i guess the game went on so long and he couldn't take it anymore. he fell asleep in the stands. understandable. >> they started piling stuff on his head, but when an oddly dressed fan tried to put a beanie on there, well, that's where -- >> that's it. it was like a game of jenga that went awry. believe it or not, he slept through it all, or maybe he pretended to. maybe he didn't feel like dealing

and i would say this, the big concern apple is going to turn into nokia, next motorola, next blackberryng to happen. if anything i think a lot of their peers are going to go by the wayside. i think it's going to take a little patience here. we put a market multiple on apple. and that's very, very reasonable considering their track record of growth relative to the s&p. >> so, deeder, is anyone legitimate in saying, well, what took them so long to go from 16 to 32 gigs in terms of the storage on the phone? i mean, that seems like what you got to do today. >> yeah. absolutely. it's been several years now where we've been waiting for apple to increase the default storage from 16 up to 32. you can't expand the storage on an iphone. and the way apple does photos on the iphone with live photos, they're very, very big. and so a lot of consumers use the storage quickly. >> do you agree there will be a turn in sales when we get to the new model? >> that's a good question. while the new storage will be nice, there are other rumors that it's going to be thinner, which might effect battery life. we'

japanese mobile messaging company nokia meeting a little bit later today on bloomberg.arkets, this is the situation in the fx market. dollar yen 105 spot, 79, we are up by 1.24% on the session. the bank of england disappoints, a rate cut expected, rates remain unchanged. yields pushing higher again, the u.s. 10 year yield up seven basis points. where are we? about 40 seconds into the market open, let's cross over to alix steel. alix: another record rally for is --p, ucf 2165 above it above its intraday as well as closing high and part of the reason why is because of jpmorgan. the bank beating on earnings. stocks popping about 3%. the reason why today's rally is so significant is because banks have not been participating and that has led some analysts to think the rally looks relatively unhealthy and what kind of early we can see in stocks. you can see the whole bank group is being led higher. citigroup and wells fargo are reporting, tomorrow. we had over two more financials and they look at black rock. -- and a look at -- blackrock. the ceo says he does not think the ra

they've been reducing their dependence on the nokia acquisition, which has basically been terrible. so they're reducing their exposure there. that would be less of a drag on the business and the technology strategy they've been working on the last four years, which we've spoken about on this program before, is beginning to affect their business in a positive way. >> we know pc sells are going down. you said you were expecting the cloud to slow on the growth side. the stock is up 13% in the last year. and now they have this massive acquisition to digest. time to sell here? >> no. we've been recommending the stock for four years. we continue to recommend the stock. we expect we're going to start seeing revenue growth resume in total. we didn't see in the year just ended. cloud will be a part of that. totals growth of course. margins we expect will expand. maybe not in the current year, but ultimately the main things investors solid look at would be cash flow. this is going to accelerate. they still had a fairly good cash flow number. we expect it to grow even more. >> why do you think

when i look at apple, i covered nokia and blackberry and some of the others that have gone by the waysideot hit by the iphone, you knew there was a better product out there. when i look at apple, you don't go that's a product. but the cycle has slowed. >> there's not a product from apple that makes you go wow either. >> is there something out there that you think that's coming that's going to be -- or from somebody else? >> we haven't seen it from anybody else, right? that's the ongoing opportunity for apple is to continue to innovate them. fortunately the iphone 7 while i think it will be a nice upgrade doesn't look like it is going to be a game changer. one of my concerns near term is that the street estimates are still high. it is tough for stocks to work until you go et them sufficiently reset where you can meet if not beat estimates. as we've called out in a couple of recent notes, we think not only the fiscal q4 estimates are still too high but particularly the 2017 estimates. until those get sufficiently reset it is going to be tough for the stock to work well. >> the stock was at