something satya nadella said he would do. microsoft has become a premiere player in cloud. and the stock price has nearly doubled under nadella. alphabet and apple are sitting on the doorstep. now microsoft is teaming up with walmart to take on amazon. satya nadella calls it a $4.5 trillion opportunity. >> we describe our mission as empowering every person and every organization on the planet to achieve more. our success, whatever we have of it, is dependent on our customers succeeding in an increasingly digital world. that's what you see with walmart and others. they are using digital telling as an ingredient as they transform retail or healthcare or industrial manufacturing. maria: this announcement with walmart, it's a digital transformation for walmart. but you are calling this a $4.5 trillion opportunity, this transformation to digital. >> when you think about it. for all the success of digital technology companies, on a percentage basis of the worldwide gdp, the tech is about 5%. it's expected to go to 10% in the next 10 years. on a secular basis tech spending will inc

microsoft shares have risen 180% since satya nadella took over as chief executive in 2014, refocusingg rather than pc software. president trump has criticised the federal reserve's interest rate policy, telling cnbc he's "not thrilled" about rising rates because a stronger dollar could hit us competitiveness. his comments break a long—standing convention by us presidents of not commenting on fed policy or the dollar — one he said he "couldn't care less" about. and now, what's trending in the business news this morning. on forbes, automakers' reinvention at risk as trump's tariffs threaten their core business. it says carmakers could be hitjust as they are investing heavily in electric and driverless tech. on cnbc, whyjeff bezos and bill gates both do this mundane chore. two of the richest men on the planet both do the dishes each night. studies have found that it can reduce stress and boost creativity. on business insider: fortnite — a free video game — is a $1 billion money machine. it says the game has generated more revenue than several top blockbuster movies last year, including j

and your successor is satya nadella. were you surprised when he was selected? 2 steve: no/ .e recommendation i made. i thought he was the candidate to replace me, which is why we moved him into running one of the big divisions. i'm glad he got the job, because he has done a great job. david: when you were there, you dramatically increased sales and earnings were higher. the stock price did not go up. why do you think there was not a correlation between stock price, earnings, and revenue? steve: two factors. number one, i took over at the worst time if you want your stock price to go up. i came in right at the heart of the dot-com bubble. everything was sky high. the bubble breaks, and by the way, a judge orders the breakup of microsoft. that happens within several months of me taking over. you have to build back up. that is number one. by the end of my tenure, i had a certain reputation with wall street. and not that favorable. not about my performance, but certainly people, this guy is a greater, he is going to keep doing this thing. but are all these new things going to bre

and your successor is satya nadella. were you surprised when he was selected? steve: no.s the recommendation i made. i thought he was the candidate to replace me, which is why we moved him into running one of the big divisions. i'm glad he got the job, because he has done a great job. david: when you were there, you dramatically increased sales and earnings were higher. the stock price did not go up. why do you think there was not a correlation between stock price, earnings, and revenue? steve: two factors. number one, i took over at the worst time if you want your stock price to go up. i came in right at the heart of the dot-com bubble. everything was sky high. the bubble breaks, and by the way, a judge orders the breakup of microsoft. that happens within several months of me taking over. you have to build back up. that is number one. by the end of my tenure, i had a certain reputation with wall street. and not that favorable. not about my performance, but certainly people, this guy is a greater, he is going to keep doing this thing. but are all these new things going to

the chief executive satya nadella called it an incredible period.e he took over in 2014. japanese lawmakers are expected to pass a bill later legalising large—scale casino resorts in the country. supporters say it will bring in billions of dollars to japan's economy, but i argue that legalising casinos could lead to a surge in crime and gambling addiction. katie silver is in our asia business hub in singapore. why are the japanese government thinking now is the time to take a punt on casinos? as you say, it's at the end of a really long process. japan has been considered the final frontier when it comes to wear casinos can be. yesterday, it passed in the upper house and we are expecting to see it passed the lower house. it has come in for a lot of criticism, from people saying they object on the basis of addiction. so they say their need to be integrated resorts. they need to be with hotels or conference centres. shinzo abe is saying it will be a boost to regional economies. so these casinos will not be in tokyo, they will be in regional locations s

your successor is satya nadella. were you surprised when he was selected?ve: no, he was the recommendation that i made. he was the recommendation that bill gates made. i thought he was a candidate to replace me, which is why we moved him into his last job, which was running one of the big decisions -- divisions. i was that he got the job. he's done a great job. emily: steve ballmer, former ceo of microsoft, now owner of the l.a. clippers, with david rubenstein. watch the full interview wednesday at 9:00 p.m. eastern. next, opening up the android market. what does the eu decision against google mean for its competitors, smartphone makers, and the android platform? we are live streaming on twitter , @technology. this is bloomberg. ♪ emily: this is "bloomberg technology." i'm emily chang. googles $5 billion antitrust fine has caught the headlines, but what does it actually mean for the android that form and -- android platform and the smartphone makers that deploy it? the lead counsel for fair search, the industry group that brought the very original complaint

on the east coast, taking on amazon walmart microsoft team up on new cloud deal, microsoft ceo satya nadellae think with digitized whether retail outlet a hospital stadium your homework place, increasingly computing getting embedded in the real world walmart good example if you think about walmart they have an amazing need today when it comes to anything around off-line commerce but they are increasing momentum online. >> more of my interview with satya nadella ahead earnings in focus on wall street three dow components reporting second quarter johnson & johnson goldman sachs united health out goldman sachs president solomon will become ceo october 1 according to "new york times". the handoff was expected and now we know date october 1, change in leadership at goldman sachs. markets this morning look like this, futures edging lower dow industrials now at low of the morning here down 30 points, s&p 500 down three nasdaq down 3 1/2, this after markets finished mixed dow industrials picked up 45 points s&p, nasdaq fractionally lower in europe this morning, markets are lower across the board. ft

what if i was to tell you intel is likely to hire within, if i gave you a name, somebody in like satya nadella. so, this guy runs that separation, that is an intelligence buy because the guy is 44 years olds >> that's an advantage that much to the success story >> i love the engineer coming back. >> the acquisitions actually made sense >> i'm an end video guy at the end. i think the jensen wong is doing fabulous things, there's another way of spending for autonomous driving. it's not up today because the trades aren't. >> what about lockheed >> i have north. i it's actually cheaper and will benefit from the same trend that lockheed will. i also like orbital because you get synergy to the story of all of the defense names, that's the one i like. i also own techtron. >> you do? >> yes >> and you get business jets coming back. >> what are the three times that defense stops? in the last few months february 1, winter olympics, north and south. second, 5/23, monday before north and south meet and 6/7, these trade entirely on trade tensions, not war tensions ratheon withheld all of those, they are to

my exclusive interview with the ceo of microsoft, satya nadella.t first deirdre bolton is standing by in the fox business newsroom. with everything

bill mcdermott and satya nadella. what if i tell you tap water. tap water is next. the details when we come back. with expedia's add-on advantage, booking a flight unlocks discounts on select hotels until the day you leave for your trip. add-on advantage. only when you book with expedia. add-on advantage. money managers are pretty much the same. all but while some push high commission investment products, fisher investments avoids them. some advisers have hidden and layered fees. fisher investments never does. and while some advisers are happy to earn commissions from you whether you do well or not, fisher investments fees are structured so we do better when you do better. maybe that's why most of our clients come from other money managers. fisher investments. clearly better money management. retail. under pressure like never before. and it's connected technology that's moving companies forward fast. e-commerce. real time inventory. virtual changing rooms. that's why retailers rely on comcast business to deliver consistent network speed across multiple locations. ev

can move from being a flat revenue company to this kind of accelerated growth it's a credit to satya nadella and his team >> 29 times earnings tim, thank you very much for that view on microsoft one of the biggest movers in the market so far this morning >>> speaking of earnings, other names to watch include skechers. that stock falling 25% in premarket trading. the company saying its second quarter earnings missed forecasts. this despite record sales. the footwearmaker's third quarter earnings and revenue guidance well short of analyst estimates. >>> also skyworks solutions third quarter results beating forecast the outlook for the current quarter also above wall street estimates. and the company plans to hike its dividend by 19%. shares are up by 2.5%. >>> intuitive surgical expecting better than expected second quarter earnings and revenues. those shares are up by 3% in the premarket trade. >>> still ahead on "worldwide exchange," brewing trouble how starbucks could get roasted in a trade war with china. we're live in beijing with details. >>> and the nfl hitting the pause button on its n

my exclusive interview with the ceo of microsoft, satya nadella.ap, bill mcdermott. but first deirdre bolton is standing by in the fox business newsroom. with everything

liz: be sure to catch maria bartiromo's interview with satya nadella and bill mcdermott of sap upon "ere with "making money." charles: good evening. the major averages today fell slightly. investors trying to bol the earnings support and the continued tensions involving trade. he said he'll slap $500 billion on all chinese imports. the manufacturing renaissance is doing so well, i'm saying tonight it will block the so-called blue wave. we'll talk about the president's new job initiative. but first we have to talk about the escalating criticism of the federal reserve. he says

when you look at the growth and the cloud aspect of it which is what satya nadella was set out to do so when established as the ceo. he looked for the growth area that he came from. that's where they're going and when i look at their dividend and the buybacks and the fundamental story of a microsoft as one example, i think there is a great opportunity. i think $100 seems cheap for a most i think it's a $110 and a $is 15 stock. five years ago we've had some areas where we've needed defensive stocks and needed some growth stocks and technology by and large has outperformed for the last five years and probably longer than that, as well. >> does it make it defensive >> unfortunately, both unfortunately, right now we're dealing with the headwind of a trade war that puts it right in the bull's-eye and ultimately when the smoke clears this is offensive and not offensive and defensive. >> let's see how offensive some of these defensive stocks are. what we're going to do right now is trade it or fade it >> like it >> kellogg >> a nice little gain. we had a nice discussion on kellogg. >> i thi

on the call, satya nadella talking about azure specifically take a listen. >> the most leading companiesure and i am especially proud that walmart chose azure and microsoft 365 to accelerate its digital transformation for their associates and customers >> nadella spoke of office 365 they're known as the multibillion-dollar business as windows 10 is active on 700 million devices and linked in has 575 million members and revenue growth up 37%. >> great rundown of the quarter there and microsoft shares basically in after-hours session highs rid now. dan, what do you make of the commentary >> i think kurt had it correct this is a good story here. you know, the valuation, as we mentioned is kind of challenging here, but when you're talking about the core growth initiatives and the way they're growing and what the greater percentage of the greater sales, i think it makes sense here. >> anybody >> what i really like is we finally got a report about linked in and the 36%, and that's a huge number and the one thing we haven't looked into that's another aside of all of this is the gaming side, whi

property remember microsoft has been dealing with piracy for a decade let's take a look what is satya nadellabecome a human right, that is how i think of it when it comes to our prulths and services. and the customers consumers everywhere going to demand it and it in products not just about a same company but having a set of rules and regulations especially in democracy like ours, instead of us trying to govern government i think the legislative process should govern the companies and their technology and uses. maria: he is talking about the -- the way the government oversees tech whether or not more regulation is that something you would like to see. >> i am not sure regulation is what is needed do i think we need to describe to the american people how we can protect their data, and still protect the country. and this is something you know from the tax on things we have not done well we have got to get that right, because i believe you can do both, and as we saw in the president's review after snowden even jeffrey stone, adviser to aclu government can do this right i think setting the standa

the stock was 31 >> the stock is up over 131% since satya nadella took over. >> we still think there'side our last price target was 119. we have not reassessed that yet based on good numbers. i'll stand by my expectation that the story will continue to be driven by upside and cash flow notwithstanding the 240% increase in the last six years, the story has only become more compelling in multiple ways. >> thank you very much good to see you. >> you, too. >>> coming up, much more of cnbc's interview with president trump. we'll take a closer look at his comments on trade and china straight ahead futures did turn sharply lower shortly after we aired those comments about trade as we head to break, here's yesterday's s&p 500 winners and losers >>> time for the executive enl several european drugmakers say they don't plan to raise u.s. prices for the rest of this year roche, sanofi and merck making those announcements today. they make well-known drugs ambien, which i have never taken. i have taken tamiflu have you taken that? >> i have. amazing. >> amazing we have agreement on a lot of differe

nasa keith alexander was here with microsoft ceo satya nadella got their take as well. >> i think chinaadest challenging significant threat we faces a country. >> chinese attacks into our country is the greatest theft of intellectual property, and the greatest transfer of welt in history. >> i think intellectual property needs to be protected i think in china's own interest given now a big intellectual property creators themselves to ensure you intellectual speaker pro tempore software is protected. >> former cia trained intelligence operative leah gabrielle thanks for joining us what do you think. >> i think good we are seeing officials highlight this issue, because certainly, china wants to replace u.s. as the dominate superpower economic power, we know that is one of china goals when working in intelligence one thing i lander china will build a beach one grain of sand at a time building intelligence very patient, they continue to work, and they will chip away at us if we allow them to so i think really good, that getting the word out that people need to protect our country, from chin