tv Bloomberg West Bloomberg July 19, 2016 6:00pm-7:01pm EDT
nomination. the traditional rollcall begins tonight, delivering the delegates he needs. you are looking at a live victor from the convention center in cleveland. trump will try to convince the party establishment he can defeat hillary clinton in november. mrs. clinton says the republican convention is a surreal affair. of told a las vegas meeting county eminence for workers that the gathering was like the wizard of oz, when you pull back the curtain, it was just donald trump with nothing to offer the american people. meanwhile, there are reports mrs. clinton could announce her vice presidential pick as early as friday. the turkish president turned to social media when the military faction shutdown radio and television stations. supportedis that he blocks to facebook and other apps and used face time to make
the announcement. top russian sports officials are being investigated. the world anti-doping agency accused the russian sports minister and officials of overseeing a cover-up of hundreds of hailed doping test. "bloomberg west" is next. emily: i'm emily chang and this is "bloomberg west." microsoft on cloud nine after exceeding analysts estimates. the field narrows in the race for yahoo!. newshe longtime ceo of fox , roger ailes, who built the news in to the most-watched is now in a negotiation to leave his job.
microsoft flying high on the cloud with shares hopping in after-hours trading. the company reporting fourth-quarter profits and sales that topped analyst estimates. revenue of 2% from the same quarter last year. the ceos aggressive push into software and services is going -- bullying revenue. here with us to dig into the numbers are cory johnson and joining us from washington, frank gillett, research analyst. let's start with the cloud. what is doing these numbers? cory: the business is growing at a superfast pace, even faster and amazon us web services this comes at the same time it the same time the pc business is tanking. thought microsoft would continue to plummet along with them. but if you look at the
intelligent cloud -- emily: it's a smart cloud. cory: it is way above average. growing at 7%, so in the quarter, you saw the growth of the cloud business. we only had eight quarters to compare. not a lot since they were re-categorizing everything. those numbers were good, not great. see thehere do you bright spots and where do you see challenges? what: the bright spots are you have been talking about -- microsoft has been doing well making the shift from the on premises software. from that shift to go to using shared stuff that gives you better value. the challenges are as mentioned, the flatlining of the growth of he sees.
-- growth of pcs. 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 up that business and cause other problems. it's going to take time to integrate that in an expanded into dynamics and build the
trust and confidence in the linkedin overall. i would stress what was just said about in search and the importance of the agent in use by employees and the work place but also by personal use at home. cory: we were talking about linkedin -- talking about amazon as it relates to competition. as we sit here, i just received telling me that my amazon. on back order is going to arrive because there's such demand, the kind of thing we might have imagined only a couple of years ago. year overdoubling year -- that's important for the future of this business because it's about companies setting their business on top of a hardware and software stack. that is really important. with mark we spoke
andreessen who says amazon has lapped all of the big players. microsoft not just taking on amazon when it comes to the cloud but with the broader artificial intelligence platform. than alked about more billion dollars in restructuring they don't have a phone business really. if you look at apple and google, they have carved out their niche. is it weird that microsoft does not have a phone business? frank: in the old model, it was a weakness, but what they are doing now is betting on people's engagement with the microsoft account. cloud service, what matters is people are using your service and login to skype and windows 10 and one drive and one note. if people are connected, it matters a lot less what the operating system is.
what matters is the number of active users engaged in cloud isvices and how that changing. if you look at that, you again stronger picture of microsoft than counting the windows 10 devices. frank gillett and cory johnson, thank you both. ac shareholders have approved 60's evan billion dollars megamerger with dell. 98% of the votes were in favor. although it still pending regulatory approval from china. coming up, fox is said to be negotiating the exit terms of roger ailes. we will break down reports that the ceo is on his way out. and look at that drop -- netflix closing out a rough day of trade. this is bloomberg. ♪
emily: whatsapp has been blocked in brazil for the third time in seven months. a judge has suspended the app on the company's failure, so-called failure, to comply with government request. long list ofthe difficulties the company is facing 17 days before the summer olympics in rio. we are watching the employment status of roger ailes following accusations of sexual harassment. theis denying reports longtime executive is leaving the company, think he is at work, but a review is ongoing in the only agreement in place is in exist in contract. but a person with knowledge with the matter says he is in negotiations to leave his job.
the parent company of fox news is discussing the exit terms. turn to ourwant to bloomberg news reporter in l.a. also joining us is david full onflict -- is he in or is he out? but theoday, he is in, direction is becoming clearer and as reported this afternoon, he is in discussions about the terms of his exit. it seems pretty clear he is going. he has no confirmation left or there is any major payoff. there have been reports but fox has come out strongly saying he is in the office today and still at work. not that he is going to be there long-term. what prompted that today were reports that megyn kelly told
i fox totors hired look into the gretchen carlson lawsuit over sexual harassment, that she also received unwanted advances from roger ailes and that lit fire under this today and seems to push this in the direction it does not team to be able to come back from four top emily: as someone who has covered the murdoch family for so long, the seems to have climaxed quickly. what is your read on this mark guest: i think megyn kelly's her own to share allegations that he had sexually harassed her when she was a younger reporter in the washington bureau a decade ago really knocked the legs out. when you have someone who is the most visible female face at fox and figure at fox and in some
ways, the face of the future of fox. she was put in at 9:00 because roger ailes side bridge to a new generation of fox viewers and extending fox's dominance. if she is saying the chairman centripetal chief force of the network, the vision is powered it's popularity and astonishing profits was someone who personally made sexual advances on her as a young female subordinate, it is hard not to credit gretchen carlson's lawsuit and others who have said he made unwanted sexual advances to them as well as. at a certain point, 21st century, -- 20th century fox will have incredible exposure on this if it doesn't both seem to be taking it seriously and actually take it seriously. they decided do you want to
stick with a guy who has been an incredible success and a giant in cable news or do you want to present the forward face of what your company represents? emily: the allegations are incredibly disturbing, true or not. but when you look at the business in particular, how big a blow when this be to fox news for roger ailes to be out? guest: roger ailes is fox news. a very powerful force in cable news. fox news accounts for about a quarter of 21st century's -- of 20th century's business. compared to cnn, they are forecast to have a margin of 64%, well above cnn.
it is a great asset for fox. investors will be concerned, but at the same time, analysts i have spoken to have raised went that a succession would need to be in place and this has clearly accelerated it. focusedurdoch has been on the issue of succession, elevating his own sons into senior leadership roles with james murdoch now running the company. emily: we are in the height of clinical season and there are reports that the investigation has gone beyond the sexual harassment allegations to his controversial leadership style. that has built fox news into what it is today. do you think this would be a loss for fox news? : i think it would feel unmoored and untethered without him. which is not to say it is the wrong thing to do to get him out.
argue insidese who fox news and inside 21st century fox at this transition should have negotiated some years ago. murdochat the same time half sons came in. he has ensured that there isn't really a dynastic handoff at fox news in the way the family is doing it at the parent company. there are no successors in place to take over and do what has been done before. executives, one who has been at fox news for some who had been put into a lateral move over certain specials and prime time programming that seems to signal roger ailes was not favoring him to replace them. ways.ould go one of two james murdoch is not as conservative as his father and conservative as
roger ailes. he would like a smoothing of the edges and make fox news more like sky news, which is more like what 20th century -- 21st entry fox owns in the u k and australia and might resemble .ore what cnn looks like the other model is to summon up the spirit of roger ailes and say what would roger have done and hope to cling to the conservative core that has launched them for so many years. thank you so much for calling in. our bloomberg news reporter in l.a., i know you will follow the story. coming up, yahoo! getting closer to finalizing a sale. will it the verizon, dan gilbert, or a little-known firm called vector capital management? we will break it down, next.
emily: the news investors are waiting for -- yahoo! could be just a week away from a sale. now is former yahoo! -- what do weeric know in terms of the top three on the list? tell us about actor capital. guest: vector capital is a name few people know. sales the reasons the process has dragged on so long is that the advisors were trying to figure out how serious are some of these bids. from my sources i have spoken
to, there are five bidders remaining. are seen as the longshots at this point. so you have vector, which is typically a middle-market technology firm, but they have raised enough financing from limited partners and have partnered with sycamore ventures to put forth a formidable bid to theoretically compete with verizon, which is an absolute but he mess, and dan gilbert who owns quicken loans and other properties. andould likely take yahoo! have some synergy with quicken and run yahoo! better than marissa mayer and the team has been able to. we should know more in the next week or two. a lot of the bids want different things. verizon is not particularly
interested in yahoo!'s intellectual property. it is possible some of the bids would take on some of not all of the other intellectual properties. that means it needs to sell its patents to someone else. ofre's been a consortium what has been thought of as patent trolls that potentially sue other parties or collect royalties on them. at least one bid like that is in. best outcomeverall for shareholders? what do you think would be the best home for yahoo!? eric: i think the best home is verizon. content ande in the in the technology and advertising world, it can take the assets and integrate them with what they already have and do it in a more rational fashion
as opposed to a standalone buyer who has to figure out how to restructure yahoo! and it needs to be restructured quite severely. that will take a lot of time and demoralize the people remaining at yahoo!. verizon is the logical buyer. you reported. who may ask for a best and final offer from their top pick. guest: we may see one more final, final round here for partners will look at the five bids and likely call the list. they will say we are willing to sell at x price. price? of you reach this if one says yes and the other we may see a bidding
war. the prices that came in yesterday are not necessarily the final heads. there may be one last round to get the final final did and then we get the winner in about a week. we don't know how the process will play out what do you think in any of these scenarios that yahoo! survives as a destination to still go to for news? survivehoo! will because there are still about a billion people that go to their site. emily: but they are not spending a lot of time there. the time they spend their is tiny. for a quick look at the stock market but aol.com still exists and people still go to it. it's a very different audience that you would -- then you would expect today in the content or
social world. any buyer has to manage that audience and transition that more toward social. of people i couple have spoken to, the most interesting development will be buys it and they have this combined entity within verizon. i've been told by several people don't expect it to be the end of whatever consolidation you may be doing. there may be another acquisition lined up after this that it gets merged with. eric: alex sherman and hippeau. thank you both. coming up, we will talk politics and how the tech industry -- ♪
trump's unlikely ascendancy as gop standardbearer has put political pundits on their heels and the establishment on edge. jeff sessions delivered a nominating speech calling mr. getp a singular leader to the united states back on track. reports former agriculture secretary tom vilsack is being considered as hillary clinton's running mate. others still in the mix include tim kaine and tom perez. and will reportedly announce her choice on friday. two more suspects in the terror attacks in nice have then transferred to paris according to the associated press which reports they are among six people in custody. one of the suspects allegedly received a text from that man
identified by authorities as the man who drive -- you drove a van into the crowd celebrating bastille day. malcolm turnbull has been sworn prime a second term of mister of australia. he was the narrow winner in the july second election. his government will have a majority of just one seat in the house of representatives. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. i'm mark crumpton. this is bloomberg. it is just after 6:30 in new york. paul allen has a look at the markets in australia. paul: a rather gloomy sydney harbor may set the tone. up and running for 30 minutes and up -- often about a fifth of a percent. a similar story in australia with a modest rise of just a
single point. one of the stocks in focus today is woodside, due to report second-quarter sales any moment now. it's not expected to be great. it is due to weaker oil prices and brent averaging $47 as opposed to $63 for the same time last year. on the watchc after slumping the most in three years on tuesday. i'm paul allen in sydney, australia. emily: this is "bloomberg west" i'm emily chang.
the republican national convention is underway and recent surveys show hillary clinton and donald trump again that. company hasurvey filled the gap as many turn away from traditional polls. john cohen andh asked about many people in the tech industry speaking out against donald trump. guest: the immigration thing -- the letter was about trump and needing to be more open to immigration. immigration is an issue that divides both parties and it divides it in interesting way. peoplee higher educated who support liberalizing immigration policy versus lower educated people that do not. that is a divide that spans party lines. the silicon valley approach sides with the college educated people but is at odds with what
is going on underneath. top and youare the are tracking as the election can itloser and how much really impact the outcome with better polling data about what he blurred thinking and feeling if most people are already decided? we will be tracking not only who's up and down, but the issues that are prominent. intoreally digging framings trying to -- mike pence are on his track record on choice and abortion legislation across the country, particularly in indiana. perceive how the candidates are standing on these issues is critical. the gun issue keeps coming up, tragically.
we will really dig in on those issues and do it at the eight level. our ability to do something not just through a periodic national poll but where it matters. emily: if voters are already decided -- guest: i don't think polls change the outcome. emily: it might change how the campaign charges certain groups more andt: i hope with better information it will be useful in the decision-making process and we are working with the top pollsters in the country to see how they do. the race toing with the white house, more than 100 technology leaders signed the letter calling donald trump a disaster for innovation. joining me now is the woman who wrote it and the ceo of the company who spent five years at twitter. genesis of this
letter? guest: i did not author the letter. people ina number o the tech industry who wonder what a trump presidency would look like. how do we express this and what is the best way to tell the nice people have gotten involved and quickly, we open up a google document and are able to publish it weekly. languages strong -- we believe in an inclusive country that fosters a level playing field. donald trump does not. he campaigns on fear and a fundamental belief that america is weekend in decline. we have listened to trump over the last year and have concluded he would be a disaster for innovation. how easy is it to get folks to support this? it was remarkably easy.
there are a lot of people who share this concern. he's erratic, hateful, openly hostile to immigrants and we know from the business community that 40% of fortune 500 companies were created and founded immigrants were children of immigrants and we know that diversity is our strength. here's a candidate who stands for everything against an open society and this candidate would he a disaster. the ceo ofoke with cisco yesterday, chuck robbins and i tried to pin him down and he would not give me an answer. should ceos be so vocal about their policies -- about their politics? guest: i think so. their job is to maximize value for the business and nothing would diminish the value of any business more than donald trump as president. emily: you have been in the
business for a long time and you have worked at the state department. hillary clinton and donald trump are net and that. what should you do? guest: i think it is importance -- it is important for people to be involved in know what the different candidates stand for and look at the track record. looking at what hillary clinton has done in the past and what donald trump has done in the past, it is cut and dry who would the better candidate. emily: you work that twitter and just took a job at color genomics. why color? professionally, i've looked at three things -- is this a product i can live without? is it a team i respect and can learn from? and more importantly, is this something that would make my children proud? on a personal note, cancer has
wreaked havoc on my family, my grandfathers both died of cancer. my brother is having cancer removed today. cancer is so pervasive and i wanted to be part of the solution in part of a movement and company that can help empower people. emily: you brought one of the testing kits with you. can these companies change the world as much as facebook did? thet: i think we are in early innings of personalized medicine. $249, you spit in a tube and find out what your hereditary risk is and that is empowering. we are able to take our health care into our own hands. you are going to see a movement like this of this intersection of biology meeting computer
science. it's super exciting and empowering. there are a lot of questions about the future of twitter and whether they can re-accelerate user growth. do you think they can? guest: i have not worked at twitter for a while but i'm a big fan of the executive team and i will continue to root for their success. emily: what are the big challenges for twitter going forward? guest: i don't speak for twitter anymore. there's no product like it. i think it's unique and important and you see every world leader using twitter. you've seen some a people coming to twitter to share in this conversation. i think it is a really important service. emily: you cofounded a group of women investors -- how many invest in and said he made and how is it going so far and mark guest: i started this with five of my friends and colleagues from twitter. we did this with the purpose of
becoming better investors. how do we get more women on the table of becoming more invested in companies? i'm also proud to say that out of those companies, one third of them have female founders and a quarter have female ceos. there's a lot of strong, amazing women out there and we have learned a lot. emily: thank you for stopping by. trade to have you. staying with politics, peter thiel is scheduled tuesday get at the republican national convention this week. he backed hulk hogan's dispute against gawker media and it appears gawker will not be able to shield it founder from the $140 million verdict. gawker went into chapter 11 to avoid let -- to avoid paying it, benton,annot extend to
emily: alphabet us google could -- the eu separate commissioner for competition spoke to bloomberg television earlier about the importance of a level playing field in the tech sector. many is important to companies to see in the tech industry that we have a level playing field and open market for businesses to present their
products to potential customers , ifnot just being squeezed we are right that there is a misuse of a dominant session by google. we are continuing our weeklong series behind the food tech industry. is it more than just ordering food through an app? we sat down with a former "new york times" food columnists, author of several books. we had to ask how this you define food technology. >> there is a way i don't think we have defined food technology very well. there are a lot of people saying we are a food tech company, but some of them are just new ways of doing old things.
we have computers, iphones and other devices that let us ordered things and communicate and everybody knows this. the fact that you can order food , i don'tt delivered think that is a tech solution. that's like you are typing instead of taking a phone call. this is not news -- newfangled ways of ordering things is not tech. meat: what about meatless -- meatless meat? guest: that is tech. if you are making a new form of meat and what you are doing is making meat out a bunch of powders, that is processed food. emily: what do you think of companies like beyond meat or impossible food?
they claim to have burgers that bleed and it is actually beat jews. it and it is had impressive. i've had beyond meat and it will fool you. i'm supportive of those companies. i do think they are doing interesting things. but i would say let's remind foode that there is real grown from the ground or real animals. if we treat them right and be fewer of them, we cannot do makes a force, have our cake and eat it too. we can eat animals, fewer of them and higher-quality ones. emily: what will change the most about food in our lifetime? guest: what has changed the most about food in my lifetime has in this movement toward fake food. fast food didn't exist when i was a kid.
it's hard for people to believe that. tv dinners did. time.born in the post war but tv dinners are all fashions. we've gone through a time where people have not cooked at all and there are people who never cook. that was not true in the 50's and 60's. emily: you worked at the "new what do you think of their meal delivery? for film and service. if you wanted to have a meal kit. you put it on your website, chefs put on their website, if anyone wants to order it, i'm sure your food is great, so they would and they would put it together and deliver it. that is what they are doing and the times has rate cachet --
great cachet. i'm not halloween it closely. is this something the "new york times" should be doing? guest: we are out of talking about food here, but i think the times needs to find ways to support its mission. if it can make money selling food, more power to it. emily: i know you are not a chef, but you quit your day job and joined a vegan meal start up. what's next for you? guest: i'm taking the summer off, more or less and working on a product with the union of concerned scientists. tohing too ambitious, just save the world. i'm working on some books. i would go back to riding in the fall. show, so wea tech talk a lot about country -- companies like instagram.
what do you think of the explosion of people taking pictures of their food? guest: if people are cooking, they can do whatever they want emily:. sometimes they are just eating it. guest: if their friends are following them and they are all into it, that's fine by me. i don't think it's doing any harm. emily: one famous chef has banned taking photos -- friend of mine and i don't think he would mind me saying that he's a grumpy character. but if he wants peace and quiet in his restaurant, good for him. emily: his motto is it's just food, eat it. neat realmotto is food. i don't see the harm in taking pictures of it. times former new york columnist.
-- as salescard plateau, the company is preparing for war. amazon is leading an all-out assault on one of the fastest growing markets with jeff bezos threatening to invest $5 billion in amazon's india operation. can flip card take on amazon? peter l strummed joins me live from tokyo. maybe they have home-court advantage, but amazon has other advantages. can they really take on amazon? : they do have a head start in the market. they founded it about eight years ago and have in building
it slowly and steadily. they tried to take advantage of the e-commerce market. retailers are fragmented and the infrastructure is difficult in order to have reliable delivery, so they have been working hard to build and amazon-like service. the founders are from amazon and they understand the business model well. moren itself is investing and jeff bezos said he would invest another $3 billion in the market. one of the flip card -- executives, we spoke to him in san francisco and he talked about the importance of mobile. take a listen to what he had to say. >> mobile is incredibly
mainstream in india. there's a fundamental shift that has happened with mobile in india as opposed to in the u.s. in india, people use an app for everything. if you want to buy cheese or get a blood test, you use an app. there'sant to shop, pretty much no option except to use an app. cart tried to go but it didn't seem to work. why not? peter: people want to order things online from their mobile devices, so they made an effort to go all mobile for a while. people also want to order from their pcs at home. data entry is a little easier. this is an area where amazon has played both sides pretty effectively for top this is a place where it they have
backtracked and they are now allowing people to order in both places. they just named a new ceo about he has beengo and launching a number of initiatives, including early morning delivery. have been trying to include technology repairs for their smart phones and are trying to step up the field of competition, taking advantage of their local knowledge. uply: thank you for that eight. that does it for this edition of "bloomberg west." today from san francisco. this is bloomberg. ♪
>> from our studios in new york, this is "charlie rose." tonight is the star of the republican national convention in cleveland, ohio. clinton, the presumptive nominee for the democrats was in ohio, to address the naacp annual convention. she spoke about racial tension and the need to on the criminal justice system. ms. clinton: this madness has to stop. [applause]