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

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

shares of a dotcom boom time levels, on visions from satya nadella. as we speak. do his actions back this? and herb says it may be still flying just too close to the sun, and who will bring your breakfast dollars? taco bell says, me, please, and we welcome onboard scott. brian's out on

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

microsoft satya nadella is about to step out in his first public event. san francisco for us today. hi, morgan. >> hi, scott. yes, so right behind me in half hour the event kicking off, new ceo satya nadella will be in front of the media and wall street. 100 attendees standing room only. in the meantime, a lot of speculation swirling around today's event and about what he has to say about regards to the mu ch future of microsoft. we're going to expect discussion about the cloud and mobile, two areas that microsoft has lagged behind competitors like amazon and google on. also we're expecting possible discussion about the long awaited office for ipad. so a number of analysts issuing reports this week. looking at a potential estimated revenue impact of about $1.2 billion in the future if and when that launches. so far investors seem pretty positive about nadella. we've seen this stock up about 8% since he took the helm last month from steve ballmer. today it's trading flat. down slightly. we're going to keep an eye on him and what he has to say. and how the

that nadellacant isya -- that satya nadella leading that discussion here. >> what kind of tone does nadellato separate itself from ballmer? >> this is a significant is this announcement for these guys. this could be $1 billion a year, probably more from a consumer product. not a huge part of office in the path, maybe as little as 15% of the sales. this will be a big deal for enterprise, for people who have enterprise businesses else in the office, they have been using ipads in the office, the old movement of byod, bring your own device, but that includes other software. levers ine had these the office where you have employers using office on the desktop and other products on the ipad. they can be a great opportunity not just for microsoft but also for apple. everything that happens on the bigi store, that could be a deal for apple as well. >> so definitely a positive going forward making and roads. to stay with technology because we have been seeing a lot of light the o's. -- a lot of ipo's. thirdy may go public in a quarter. we are seeing a ton of deal making, especially from facebook, and

satya nadella is shuffling management in an effort to reignite growth here at he is putting former politicalve mark penn in the role of chief strategy officer. it is the most extensive shakeup for nadella yet. he was named ceo just last month. cory johnson 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 screwgled 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

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

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

first up, satya nadella taking the stage in this event in san francisco. della does have a big announcement when he's expected to unveil microsoft office for the apple ipad. we talked about this in the last hour with jon. >> no one is getting with this story other than jon fortt, it just can't b be ipad microsoft word. that alone is t not much of a story. there has to be collaboration features, element of pricing. perhaps it's a platform where they say you can move documents to box or evernote or something like that. that alone can't be the story. >> the analyst on last hour said just give 10 million subscribers to pay 100 bucks a pop and voila, a billion dollars in revenue. if it were that easy, why didn't they do that a long time ago? >> it's not that easy. 100 bucks a pop is a lot for your ipad user. they spent a lot of money on candy crush but are not going to pay that for what they can get for free from other app providers. what microsoft has to show is an enticement to get the people trying on software mobile again and to get a little bit more for ups

. >>> one of our other top business stories for the day, the new ceo of microsoft, satya nadella has outlining his vision for the company. the big news, it's big. the company's office software suite will be available for apple's ipad. is it a smart move or an admission that microsoft has lost the battle for the post pc world? the bbc north america's very own richard taylor was there. >> reporter: this speech by satya nadella, really the first time the new microsoft boss has been able to outline his vision for the company. remember, a lot of investors were worried that he was too much of an insider to effect the kind of change that microsoft needed. he talked about a mobile first, cloud first strategy. >> the real goal for us is to step up to provide the applications and services that empower every user across all of these devices and all of these experiences. so that's perhaps the job number one that we do, which is to empower people to be productive, do more across all devices. >> reporter: well, the move of office to ipad really signifying a strategic shift in microsoft's thinking,

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

behind me, the big event here from microsoft just wrapping up a few moments ago inside new ceo satya nadella making his first appearance in front of media. you mentioned, the big news here, office for ipad. that is debuting in the app store right now as we speak. so here's what nadella had to say about this product at the event today. >> when it comes to office 365, the vision is pretty straightforward. is to make sure that the 1 billion office users and growing can have access to the high fidelity office experience on every device he love to use. and office on the ipad and today's announcement marks one more step in that direction. >> reporter: so now this is really a watershed moment for microsoft. and its core office suite. the first time we've seen this software available on apple's ipad. nadella saying to expect more announcements in the coming weeks starting with another next week at the build conference here in san francisco. back to you. >> margin, thank you for the details. >>> bring in our own jon fortt as well as stephen yakman from the five star yakman fund. microsoft, one of the

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

as the pc business shrinks-- microsoft's new ceo satya nadella launched a version of microsoft's office software made for apple's ipad thursday, at his first news event. 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

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

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

have satya nadella, the new microsoft ceo, addressing the tech journalists. that is a big deal. it is a big deal that he came to us. he came to san francisco where the big tech companies are headquartered here in -- headquartered. microsoft office will be on the iphone and the ipad. there are more ios devices sold then microsoft devices. coming to where the users are. that is a big admission from microsoft that they need to be in more places. >> standby. i want to take a deeper dive into who he is and what his qualifications are. a look into the background of the man who is taking over for steve ballmer. followld you like to this act? satya nadellafor is no one expects them to be steve ballmer or wants them to be. is now having to deal with the tug-of-war over strategy. cofounder bill gates initially disagreed with ballmer's plan to make mobile devices. it didn't help that the microsoft surface tablet was a nadella, they have chosen a -- years atwendy two microsoft. he ran the company's rmb unit before ballmer named him the head of the server group. he reengineered that business

. >> 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 ct

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

. >> 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

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 in the shakeup that this is something they really wanted to get right and do it the way that satya nadellaone. >> some of the biggest names we have become familiar are on the chopping block. of some of thenk 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. -- cisco executive. he was a ceo of skype. be something else. regardless, if he is someone that you were considering as a ceo and he is leaving the company, that has to be considered a significant loss. ,> i know this is somewhere in tammy, that you have interviewed really recently. >> she was one of the people that had a notion on how to market the project. if you're going to elevate him to wear some level he will oversee this. maybe he had disagreements or how it would happen. we do not know. they're making some choices about how they will tell the story going forward and with who will do that. clearly that will not be there anymore. >> with whom? >> is a second language. i'm not good. >> a lot of

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

. >> overnight it was very respectful -- >> satya nadella unveiled all of this.f 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 first, without first. -- he has been saying mobile first, cloud first. it is actually significant push. he handled the discussion well and it was a consistent, bold move. >> by the same token, is also a condemnation of surface? didn't work, we have got to go to the ipad now. >> there is no way to deny that surface -- i have used both products and i prefer office on the ipad. >> whether you prefer apple or not, microsoft is everywhere. windows xp powers atms, though that could change. >> the biggest fear of getting robbed at an atm is probably from the person queuing behind you. but soon it might be from a hacker sitting behind the computer. unknown to many, nearly all of the world's cash machines are operated by microsoft and those at the -- microsoft windows xp, which runs on many computers. it is also 12 years old. microsoft is pulling it

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

satya nadella takes the stage for the first time as ceo.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.

don't forget, satya nadella came out said they will bring office to the ipad focusing on mobile apps. doing really well today. several brokerages expect a better than expected second quarter for the chipmaker that will be coming out. we'll get news from micron on thursday. we're seeing technology among the sectors doing very well. melissa: hey, nicole, i can't let you go without embarrassing you. you had quite a busy weekend this weekend. where were you exactly? i think we have a little video here. >> [speaking italian] melissa: you didn't bring any for us? nicole. the very own greek goddess, grand marshal of the parade. i hosted the parade, even better than on tv the whole entire time. we had grand marshals, chuck assume irand big business leader. we interviewed mayor de blasio in new york. all the food that looked so great. octopus, i did not make that. we had yogurt people on and a lot of great people. maria menounos, tony orlando. it was a lot of fun. thanks, melissa. melissa: our very own greek goddess. we love it. appreciate it. all right. >>> pop goes the sector. all this week

he's the tight end for satya nadella here so that he can run strategically. >> except these are all the ballmer was there. he approved these things. satya's been there since the early '90s. it's not the previous administration. this is the previous administration talking change which i think microsoft has to do but it is the same people who put all the wood behind windows. so it's just -- you know, you got to listen carefully about these things. >> there was the added nugget about microsoft having considered buying whatsapp. >> no, no. >> your thoughts on that, kara? if it's true. >> he didn't say that. he said he would have, we would have. it didn't mean they were in the talks. they were not in the talks in any significant way. >> i assume they did some due diligence on it? >> i guess. they would not have bought it. they have skype, by the way. they have a great underleveraged property, skype, which could be a similar property and should have been. another thing they have left fallow. skype is this very underleveraged property that was very popular globally, by the way. >> do you have

satya nadella and shifting things around. that was up 63 cents.rt varney's stock, microsoft. i always think of stuart because of his holding in that. thanks very much, nicole, appreciate it. sandra: big oil stocks are up today with the broader stock market but crude oil falling from a five-month high on speculation that tension between ukraine and russia won't actually disrupt supplies. david: despite recent gains in oil we have someone bearish on big oil. he says the well is running dry for major energy stocks at least in the near term. joining us jeff reeves, investorplace.com editor. jeff, cuff to see you. supply and demand on oil specifically. start with the demand side. demand is dropping. i didn't realize how much until you sent your notes. tell us about it. >> yeah. i mean it shouldn't be much of a surprise to us here in the west, energy efficiency is a focus. specifically to big oil, if you look at some of the energy sources we have, a lot of frack something for natural gas. it is cheap. it is clean. it is preferable. telling to look at oi

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

is satya nadella;s first shakeup of the company. >> might we see more anytime soon? what we hear from analyst, this will not be the first move. bere are other spots to filled. >> how well he reshaped microsoft, which kind of feels like the big staid company. how do they reinvent themselves now? >> they have been a company around devices for quite some time now. they have really been going after the markets where google and mark -- microsoft dominates. so he has an expertise in cloud. the question is, does microsoft have enough traction to get developers excited to build on the platform? he has to really build the excitement. if you do not have developers innovating on the platform, it does not matter what else will happen. >> coming up next, heading to richard branson's eyelid where the rumors reign supreme. we will tell you next. >> i was down in the car i went recently. richard branson's private island. >> right by the bitter end yacht club. >> not a bad place either. doing all he can for animals holding all the endangered species. we took her to her -- took a tour

. >> in terms of people like satya nadella, who are not as well known, taking over a company that has 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? should the company be broken up? how do you refresh the innovation cycle? 10 years, last five-to- we saw apple do that. they were focused on the pc, then they went into a new market, music, and that was a radical shift to create a new business model. >> not breaking up, but going into a different model. >> you have to have the courage to get side -- outside of the >> you have been in

the new ceo, satya nadella announcing new leadership roles.will leave the cloud enterprise division and spencer will now head the xbox business. withmber five, disney shares up about five percent. the animated show "frozen" the highest grossing of all time of a total of just over one billion. my son's first film in the theater. he liked it. he had not been singing the song like some. this is my daughter's favorite movie. wear pigtails after they saw it. partebit has to do -- >> of that has to do with ticket sales are higher. sure.m i am looking forward to " captain america number two." >> number four, target. downgraded from a plus two and a. they suffer the largest data breach ever during the holiday season last year were over 110 million customers were affected. number three, gm. shares down slightly. according to documents obtained by an escalator saw automaker canceled a proposed fix for the ignition switch failures and the car. a professional hearing set for tomorrow. 2.6 million small cars recalled. >> number two, fannie mae and freddie

satya nadella hires mark penn as the new microsoft cso. three executives have left the company.echnology that allows drivers to use .phones with voice commands it will be available in vehicles as early as this year. it could come as an update to the ios7. "nonstop" has kicked "the lego movie" out of the top spot. catch all of the latest in tech and media on bloomberg west. big beer makers. we have been on a beer binge lately. a lot of focus on craft ale and import. now they're realizing they cannot ignore good, old-fashioned cheap beer. joining me now is duane stanford. these beer makers say they cannot focus on a high end consumer. they cannot ignore the low end. now, theyew years have in looking at focusing a lot on craft beers and siders. -- ciders. try to gett is to better margin as some of the volume has tapered off. that includes putting the marketing dollars towards those brands as they try to get them off the ground and try to compete better with craft beers. that is what you see of late. they are finding that hurts them a little on the low end. what are they doing to ge

satya nadella will be making his first big media presentation to unveil microsoft for apple. the question is, is he too late on this? the tablets have been out. people felt comfortable using them. they really need microsoft office and excel on their tablets? >> it would be better for microsoft if they have been there earlier, but at the same time, we are coming through days one with the tablets, which is a online,, check things this idea that we will move to the tablet moore is an actual business divisive people use it much more frequently, that is the time in office these to be there can be accessible. >> what stuns me about this, what took so long for microsoft to get on an apple platform. what is the why there? >> this has been microsoft's strategy, use the monopoly power. monopoly power in one apart of their markets to basically help growth in other parts. if we restrict microsoft office to only being on the windows mobile platform, this will help sales of windows mobile, which is what helps the growth pattern there. this is a huge blow for microsoft, for mobile because n

. ♪ >> microsoft ceo satya nadella says he will hold nothing back in his effort to get microsoft programscross all devices. the company believes office software the -- for the ipad, the first time they are putting the program on the tablet. we have a guest who's latest post is entitled "the enemy of my enemy is my friend -- why ms office is coming toios." to ais an admission certain extent that life has changed, business has changed, and you need to be competitor -- competitive on all platforms? >> he realizes pc sales are flat and mobile is next. they need their productivity software on mobile. apple is where it is at. see that, they microsoft is not their competitor anymore, it is really google. it makes sense. >> doesn't mean people will start the work on the ipads? use to youryou got ipad as being more of an entertainment device as opposed to a work device. but that, you think, could and would change? a i see tablet as more of consumption thing. but you never know how it will shake out with the enterprise of what people will end up doing on tablets and how it can transform. but i thin

the first days of t satya nadella trying to make microsoft ceo an offer he can't refuse. >>> it is theipo. what does it take for a mobile game maker to survive? >>> a ban on twitter as it celebrates the eightth birthday. we go behind turkey's controversial move. >>> and we will take you to the site of a mystery campus in silicon valley. who is the mystery tenant? we have clues. >>> first, we want to get to the squawk beat where we talk about the latest in tech. if it's friday, that means that kara swisher of re/code joins us early from san francisco. as always, we have jon fortt with us here at post 9. we've got to get to your microsoft exclusive in just a emt no, but first, we want to get your thoughts on reid hastings, the netflix ceo blasting internet providers, particularly comcast, which is this network's parent company, hastings says netflix shouldn't have to keep paying what he calls internet tolls. of course, this comes just weeks after netflix and comcast inked a deal to maintain some of the higher speeds. kara, what did you make of this blog post when you read it? >> it's rig

satya nadella, the new ceo made a polished debut.to bring mobile apps to be a top priority for microsoft. walmart suing visa for $5 billion. this is over the credit card swipes. visa is one of the few names in the dow with a down arrow. good news for tesla, safety regulators let it go. they don't continue to look into the fires with the model s. tesla making more precautions, putting a shield under those batteries. so that is another caution to fight fires. that is good news for tesla. that stock is up about 4% now. jenna: we'll take good news on a friday any day you but good on a friday. nicole, thank you. a quick business note. you don't want to miss maria bartiromo's new show, "sunday morning futures." premiering 10:00 a.m. eastern time on the fox news channel. that is coming up this weekend. watch it and set your dvrs, two hours from now new jersey governor chris christie will hold a news conference. comes on the heels of a taxpayer-funded investigation that ultimately exonerates christie in that bridge traffic jam controversy. w

it is a big day for microsoft ceo satya nadella.announce a version of microsoft's popular office software suite for apple's ipad. about time. >>> a busy economic calendar ahead. we get the labor department's weekly report on initial jobless claims. at 10:00 eastern time, the national association of realtors is out with pending home sales. >> looking at some of larry's -- you can't say all of this stuff. i don't think you can say this stuff. the federal reserve blocking five banks from increasing their dividends or stock buyback programs including citigroup. let's get more on this story from kayla tausche. they said no one other time. they've had time to do a lot of stuff. >> joe, it was in 2012. so two years ago, that the fed actually rejected citigroup. that was one of the facets leading to the ousting of ceo vi vickrum pandit. with 12 banks participating in this exercise for the first time around it was bound to have more rejects than in the past. they have a long way to go to meet the u.s. standards but in addition to hsbc, santa

satya nadella still going to have to deal with steve balmer and pushback on strategy.ow to communicate with the board. that makes sense to me. but i think it will be important to see how windows and office get treated. who ends up with influence over that. and cloud now that satya, he's ceo, he's not going to be running that as directly anymore. >> do you get the sense he'll be picking from loyalists within the company to him, or going outside to find other risk takers? >> i really don't know. but he's got the reputation in silicon valley in general to be able to pull in some talent. i'm not exactly sure where he's going to pull it in from. >> interesting. i do wonder we keep hearing about price competition between the chrome and windows 8.1. >> i think the best news about this is he is moving quickly. and that is what has to happen at microsoft. tremendous cash flow today, but the clock is ticking and it is ticking fast. they have to move quickly. >> yeah. finally it was the selfie heard round the world. this picture shot by bradley cooper at the oscars last night qui

satya nadella is not going to make it easy for you, john chen. thanks for joining us.ake care. >>> fantastic interview, jon. interesting to see the stock move as you were talking to him as well. up next, what is a social network doing with a fleet of drones? we've got the details on the latest project from ceo of facebook, mark zuckerberg. >>> plus, amazon is set to make a big announcement in new york next week so what exactly does the tech giant have up its sleeve? we've got that answer coming up next. p next. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. [ male announcer ] when fixed income experts... ♪ ...work with equity experts... ♪ ..