we won a project away from ibm and found 66% more bugs than the ibm team for a fortune 500 -- fortune 100 financial services company. the reason we're able to do that, three-quarters of our company have asperger's syndrome or similar autism spectrum profile and have the exact profile we're looking for to do software testing. and have the raw talent but also the perseverance, the ability to work with teams and we have managers that work with our teams who are veteran technologists that join our company to be part off a company that has purpose and emissions. so, we're able attract fantastic talent. >> in your testimony, you had mentioned what a great employee mike is and works hard and comes on time and everything else. but most interestingly, it's had a positive impact on other employees and made them better employees. and obviously a small business, that's important to being successful, and keeping everybody employed and hiring more people. so how has that been the case? are there stories or examples where the quality of mike has improved the quality of the other employees? the mike

this is ibm's watson. it's listening and then writing an original song, tailored to a specific mood. >> we'll do a darker or moody, sad version. >> so it listens to this piece, and it deconstructs this piece of music, learns from it, and gets inspired by it. >> reporter: kpur scientist built the watson beat program here at ibm's austin, texas, campus. >> and then it adds on top of it the layer of emotion you want it to portray. >> to say something is happy or sad really depends on the person. >> to some degree, yes. we can only take it so far. >> reporter: this musician is teaching watson to convey emotion by training it to recognize musical patterns. happy or upbeat songs are more likely to be based on major chords. sad is typically expressed in a minor key. >> this is revolutionary, you think? >> for sure. this is the cutting edge of music. >> reporter: music has been moving into the digital age for decades. technology has created more efficient recording methods. and spawned an entire genre of computer

that's what the ibm cloud is built for. they are. do i look smarter? now businesses can get more out of their data. yeah, a little. you're making money now, are you investing? well, i've been doing some research. let me introduce you to our broker. how much does he charge? i don't know. okay. uh, do you get your fees back if you're not happy? (dad laughs) wow, you're laughing. that's not the way the world works. well, the world's changing. are you asking enough questions about the way your wealth is managed? wealth management, at charles schwab. europ >>> the dollar getting a boost. climbing towards a two-month high and growing expectations for a rate hike. boris schlossberg. managing director and a cnbc contribut contributor. yellen closed, in your mind -- have to believe it will be june or july. >> she did not say no. usually she is the biggest dove in the room and always pours cold water over any expectations. she didn't do that this time. i think it's because they have to do something to gain credibility back. they've been backing off the whole ide

we developed the world's fastest mainframe computer, faster than anything ibm had. at the next stop, we built the world's largest digital data storage system. then on to precision instruments where we built an even larger storage system, this time using lasers. i was the vice president in charge of software development. it was all very cutting edge and challenging and cool. i liked my work most of the time but i did not love it. i searched and i searched but i just could not find a software engineering job that i loved as much as i loved sailing. so i tried to create one. i put together a plan to start my own company. that way, i could completely control my work environment. i would hire the most talented programmers i knew and we would all work together. on the most interesting and challenging software projects. my goal was to create the perfect job for me, a job i truly loved. i never expected the company to grow beyond 50 people. maybe i really did lack ambition or vision. i don't know. it was a long time ago and i was very young. anyway, today oracle employees a

so far he's met with companies like ibm, hp, google and jpmorgan chase. >> we are adaptable. we're flexible. we're mission centric, we're dedicated. we're loyal. we're sponges as well. we learn quick. we're going to make our mistakes, that's a fact. but we're go not going to make that same mistake twice. >> we're highlighting the tech industry today. >> representatives from microsoft, uber and amazon were among the folks testifying. >> our commitment to the military does not end once candidates are hired. once employed, we connect them with our internal network, the amazon warrers. >> amazon pledged to hire 25,000 veterans in the next five years and uber said the company had already fulfilled its goal of employing 50,000 veterans. there is also a need for veteran candidates in the health care sector, ascension recently partnered with the department of veterans affairs to provide medical services to veterans who may not have access to a va facility or who have to wait a long time for an appointment. >> we currently have 2,000 of our employees who are veterans. we want to make

oracle and ibm are not doing that quite as well, they are outgrowing that space. they have a number of brand-new releases server-side, a brand-new launch of their database which i think will help them in the application portfolio, they have a whole suite of new apps they focus on. analytics, communications, there are different ways that they are going down that we think are more back to the core of what microsoft was, which was a true enterprise software company. yes, do they care about the consumer, they do. but they understand what they are good at and they are going back to their core, in my opinion, from wall street's view, is a good thing. they do not want to accept the decline that they have seen. we are starting to see the operating margin stabilize and improve slowly on the operating margin line. we think, this will be a multiyear shift, this hybrid cloud, last quarter was one of the last -- worst quarters they have had. he will see the weight of the perpetual cloud and they are pulling along a big business. we think they are architecting the right future,

fastestoped the world's mainframe computer, faster than anything ibm had. at the next stop, we built the world's largest digital data storage system. then on to precision instruments where we built an even larger storage system, this time using lasers. i was the vice president in charge of software development. it was all very cutting edge and challenging and cool. i liked my work most of the time but i did not love it. i searched and i searched but i just could not find a software engineering job that i loved as much as i loved sailing. create one.o i put together a plan to start my own company. that way, i could completely control my work environment. i would hire the most talented programmers i knew and we would all work together. on the most interesting and challenging software projects. my goal was to create the perfect job for me, a job i truly loved. i never expected the company to grow beyond 50 people. maybe i really did lack ambition or vision. i don't know. it was a long time ago and i was very young. oracle employees who wanted to 50,000 people.

and in new york, ibm researchers have developed watson, an intelligent software system at the forefront of this revolution. >> it can understand somebody's personality type. it can look at e-mail and tell you what is the tone of the e-mail, you know, what kind of messages are coming through. whether you intended them were not. if you want to read them or not. they can look at, for example, a big encyclopedia, extract the concepts among those concepts. narrator: watson operates in the world of big data, extracting knowledge from the billions of facts and figures from inside cyberspace. >> i look at the world from the point of view of the amount of data that there is and the amount of knowledge that is embedded or inside the data that we are not able to extract today. therefore we are not able to make the right decisions. so for the industrial revolution to me is the ability to have a much better understanding of the world through all of the data, and therefore making better decisions for it. narrator: ibm is currently running a research project in which watson augments the intelligence o

we built our business on the ibm cloud. because that's what the ibm cloud is built for. yourbut the omega-3s in fish oil differ from we built our business on the ibm cloud. megared krill oil. unlike fish oil, megared is easily absorbed by your body. megared. the difference is easy to absorb. >>> donald j. trump is calling for a total and complete shutdown of muslims entering the united states, until our country's representatives can figure out what the hell is going on. we have no choice. we have no choice. >> that was donald trump back in december, offering what would become one of my core campaign proposals, and one of several ideas that put him at odds with long-standing republican party policy. how does the party now square its core beliefs with trump's campaign promises? joining us now, the man who will be response for reconciling those references, senator john barrasso, the chairman of the republican platform committee, senator, thank you for joining us. i want to begin right with that, what we heard on the muslim ban. this was something that donald trump talked ab

oracle and ibm are not doing that quite as well, they are outgrowing that space. they have a number of brand-new releases server-side, a brand-new launch of their database which i think will help them in the application portfolio, they have a whole suite of new apps they focus on. analytics, communications, there are different ways that they are going down that we think are more back to the core of what microsoft was, which was a true enterprise software company. yes, do they care about the consumer, they do. but they understand what they are good at and they are going back to their core, in my opinion, from wall street's view, is a good thing. they do not want to accept the decline that they have seen. we are starting to see the operating margin stabilize and improve slowly on the operating margin line. we think, this will be a multiyear shift, this hybrid cloud, last quarter was one of the last -- worst quarters they have had. he will see the weight of the perpetual cloud and they are pulling along a big business. we think they are architecting the right future,

i went to ibm because they have the overall best passage. that is what people are offering. >> is bernie courageous or clueless. >> gary b. always does a good job researching. i looked up a bernie sanders resume from 1980. there is nopg it. it's been well documented he didn't have a regular paying job until the age of 40. he's on this quixotic quest for some reason. he's the guy who shows up at the bar and as long as your buying him drinks he's pontificate about what social simple. he's on this quixotic quest to knock downwind mills and this dem dpogry is just not going to work. >>ed and after bernie sanders said he was destroying the moral fabric of america, sanders mazz never visited the aviation plant in vermont which they had spent about -- >> basically built the city of orlando. that sid. what's wrong with bernie is not that he's acknowledging there is this problem with capitalism. or you can literally pay people $10 an hour and they will keep working and making all this money for people it is amazing. but he doesn't have to be a job cr

oracle and ibm are not doing it as well and outgoing that space. they have a number of brand-new releases server-side, i brand-new launch of their database which i think will help them in the application portfolio, they have a whole suite of new apps they focus on. analytics, communications -- there are different ways they are going down that we think again are more back to the core of microsoft was, which was coming true enterprise software company. yes, do they care about the consumer? if they do? but they understand what they are good at and they are going back to their core, in my opinion, from wall street's view, is a good thing. they don't want to accept the operating margin decline they have seen. we are starting to see the operating margin stabilize and improve slowly on the operating margin line. we think, this will be a multiyear shift, this hybrid cloud. last quarter was one of the last quarter they had in years. you will see the weight of the perpetual cloud and they are pulling along a big business. we think they are architecting the r

and in new york, ibm researchers have developed watson, an intelligent software system at the forefront of this revolution. >> it can understand somebody's personality type. it can look at e-mail and tell you what is the tone of the e-mail, you know what kind of , messages are coming through. if you want to read them or not. they can look at, for example a , big encyclopedia, extract the concepts among those concepts. narrator: watson operates in the world of big data extracting , knowledge from the billions of facts and figures from inside cyberspace. >> i look at the world from the point of view of the amount of data that there is and the amount of knowledge that is embedded or inside the data that we are not able to extract today. therefore we are not able to make the right decisions. so for the industrial revolution to me the ability to , have a much better understanding of the world through all of the data, making and therefore making better decisions for it. narrator: ibm is currently running a research project in which watson augments the intelligence of medical professionals, he

written on. >> so tell us about ibm watson. you put your text in there, and then what happens? >> correct. you put your text in, and it gives you some personality insights. it tells you the feelg and emotions around what you're writing, and it's also the grade level. >> what grade level do you want to be? >> you want to be between three and nine. >> wow, i think actually i won't say the grade level for right now, but just the idea of speaking in normal language, it's how we should think about everything, right? if someone comes in and speaks in jargon, i think the world is different now. you're not seen as smarter as maybe perhaps you were many years ago. people are just thinking, i don't understand what you're saying. just speak in english. >> relatable. >> plmake it relatable. >> you can take a complex concept and make it simple, that's a skill now. >> great advice from both of you who have both built successful companies. congratulations on your careers as well. >> thank you. >> thank you. >>> this week's your biz selfie com

. >> i'm telling you rock 'n' roll is no different than ibm, xerox, sara lee, chevrolet, supply and demand, the same business. >> rock 'n' roll had been a gritty novelty business. it was not the center of the world in the '50s and '60s. in the '70s it becomes the main event. it has repercussions in all sort of positive and negative ways. >> the total cost of this tour is $3.5 million. now the gross of the tour is in the region of $11 million. so -- yeah, it's a living. >> it was so decadent and over the top and money just -- whoo -- being thrown against the wall. >> feel like a hypocrite, if you are invoking the idea of young people. bouncing the idea of young people. taking young people's money and taking it and putting it in your pocket. really what you are is a middle-aged family man. it is only the hypocrisy that i'm worried about. >> bruce springsteen was trying to reclaim the soul of rock 'n' roll by going back to basics. >> using emblems from the past and being discarded at that point. ♪ every day you sweat out on the streets on the wrong way ♪ >> using a sound that was not on t

i thought ibm should buy them to inject some new blood. boston is in a jam. it goes from profitable. if it keeps going, they will have nothing to do with it. that's how a stock flat lines. on thursday we get to hear from two different stories. tech companies that nobody seems to know. i'm talking about this. it has unbelievable numbers. and ambarrella that doesn't have good numbers. a year ago it traded as high as $48. during that same period, it just kept motoring higher from 130s to 150s. one of the foremost semiconductor companies. the stock has broken many hearts. i say stick with broadcom. i have to say, to say that this is important is to underestimate the most significant employment report of 2016. fits strong we can almost be sure the fed will pull its trigger in the rate increase in the coming june meeting. it has been selling off for weeks in anticipation that they have spoken for the three hikes this year. virtually assuring this one has to happen. not enough months are out. only a very weak number could upset the rate hike apple cart. if the numbe

i will be interviewing ginni from ibm. and susan from gates foundation. so i will be busy. >> yes. lots of people. >> and so as jon and i will be heading out there to see everything that happens. we can't wait. kara, rest up. >> see you at the pool as usual okay. >> and kara swisher, big week next week. thank you for join g using us. >> thank you. >>> and meanwhile a slight gain in the dow up 18 points, and the s&p up 4 after the best week for equities the nasdaq up for the fourth straight day, and seeing the best gain of the averages up by 0.33. and ul ta salon raised the forecasts for the rest of the year, and monster beat, and the stock is up close to 10%. meanwhile, gamestop is falling after giving the current quarter outlook that fell below the edge expectations, because they are spending more time on the digital gaming systems than gamestop games. >> and now are the long tsa lines getting any better? we will go to o'hare to find out. >> and the companies picking up steam, and what is ahead for the rest of the year? and look at palo alto giving estimates below, and struggling

. >> evidently our entire nuclear arsenal runs on ibm series 1 from 1976. in fact, i believe we have footage of the computer simulating an attack. >> i remember that. >> i know. incredible, isn't it? >> anthony, did you recognize the voice of norah o'donnell? >> i thought it was very familiar. good cameo appearance there. >> we like that show colbert. >> very much. we like the people over there. welcome back to "cbs this morning." coming up in the next half hour, airport securities put to the test this weekend. we'll ask if the tsa program is paying off. >> and if there are shortcuts to avoid the line. >>> targeting u.s. media, new developments in a high-profile feud and how it may be the latest sign of tech titans using their money as muscle. that's ahead. >>> time to show you this morning's headlines. "the new york times" says analysts think north korea may be the first country to carry digital attacks for financial gain. analysts found a rare code that was used to steal more than $81 million from the bangladesh central bank and attack two other asian ban

. >>> evidently our entire nuclear arsenal runs on an ibm series 1 from 1976. in fact, i believe we have some footage of the computer simulating an attack. [ siren ] >> i remember that. >> i know. incredible. >> anthony, did you recognize the voice of norah o'donnell on stephen colbert last night? >> i thought it was very familiar. >> i like whether that happens. >> cameo appearance there. >> we like that show, "colbert," don't we? >> we like >>> welcome back to "cbs this morning." coming up in this half hour, airport security is put to the test this holiday weekend. travel editor peter greenberg is in studio 57. we'll ask if the tsa pre-check spring paying off, and if there are shortcuts to avoid long lines. >>> the silicon valley targeting the u.s. media. new developments in a high-profile feud and how it may be the latest sign of tech titans using their money as muscle. that's ahead. >>> time to show some of the headlines. "the new york times" says animal lift think north korea -- analysts think north korea may be the first country to carry out digital attac

that's what the ibm cloud is built for. >>> the big focus for markets, janet yellen's speech. we asked what you expected. joining us from minneapolis is jim cahn at the wealth enhancement view. >> if you look at the data, you have to believe that there is going to be a rate hike between now and tend of the year. right now market is pricing at 30% chance of a rate hike in june. we think that is probably a little higher and the market is discounting some positive news we've seen south out of the economy which may lead the fed to believe things are closer at hand. >> do you think we stall out here? >> it is possible. i do think there is going to be more volatility. the market is under pricing we believe this the probability of increase in interest rates. increase in interest rates reduces value of other assets like equities. so if we do have an increase in interest rates we do think we'll see potentially a sharp selloff in equity market because it is under price at this point. that said i think energy has room to go a little higher. we've gotten noise out of iran and continue to

today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up. with the ibm cloud, the call just came in. she's about to arrive. and with her, a flood of potential patients. a deluge of digital records. x-rays, mris. all on account...of penelope. but with the help of at&t, and a network that scales up and down on-demand, this hospital can be ready. giving them the agility to be flexible & reliable. because no one knows & like at&t. my m...about my toothpasteice. she eveand mouthwash.ice... but she's a dentist so...i kind of have to listen. she said "jen, go pro with crest pro-health advanced." advance to healthier gums... ...and stronger teeth from day one. using crest toothpaste and mouthwash makes my... ...whole mouth feel awesome. and my teeth are stronger too. crest-pro health advanced... ...is superior to col

if you look across world hardware, you see what is happening to ibm and the oracle sun hardware business. they declined in europe. the oil and that really uses them is cisco. oliver: you talked about the team and their contingency plan. reporter: they really thought they would win this one. even though it was the same judge from the last trial. alix: thank you very much. cory johnson from bloomberg. scarlet: charts you cannot miss on the u.s. economy. ♪ alix: three charts you cannot miss on the u.s. economy. matt vogler joins us now. you are looking at financial conditions. the third is the fed hike telegraphing that financial conditions will tighten and hurt the fed, but you are not seeing it? matt: if you look at important financial expressions that cause a lot of tightening a few months ago, you can kind of see that in this chart, equity volatility, treasury market liquidity, and then you also have the probability of deflation implied by markets and investment-grade credit threat. this shows the biggest tightening essentially in at least four years. scarlet: and it goes up. matt: ex

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it's all in the ibm cloud. if you combine that with the data your business already has- then things get interesting. so right now we're working with a retailer to blend social and inventory data to help predict demand. we can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. and another company we work with can apply analytics to sensor data to save millions in energy cost. today, every business runs on data. that's exactly why we built the ibm cloud. todaythere's no oness no one surface...e. no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. lease the c300 for $359 a month at your local mercedes-benz dealer. >>> time for a mad dash as we head to the opening bell. a lot of people from u.s. food here, too. they have a big

we built our business on the ibm cloud. because that's what the ibm cloud is built for. plumping surface cells for a dramatic transformation. we built our business on the ibm cloud. without the need for fillers. your concert tee might show your age...your skin never will. olay regenerist. olay. ageless. and try regenerist micro-sculpting eyeswirl. it instantly hydrates to plump and lift. >>> the dow rising 359 points in two sessions. crude oil $50 a barrel. chief technical strategist katey stockton. i was asked three or four weeks ago when it looked like the market was getting into that area again where it had been lower lows and lower highs. and you said this is a crucial time if it turns down again. we didn't go through. >> he failed near that resistance. >> we are giving it another shot. and i think it will fail again. so a breakout really needs confirmation not just in price but in time. s&p 500 is right around 2,100. you need to see it stay a couple weeks to confirm or break out. and i don't think that's going to happen. >> we have had smart guys saying dead money i

the outdated technology is being used in the 1970s ibm computer system to send and receive comic emergency action messages to the u.s. nuke air force says. this is according to a new government accountability office report. the floppy disk handling functions related to intercontinental ballistic missiles coming their bombers and tankers support aircraft according to the report. if you go through the gao report, replacement parts for the system are difficult to find because they are obsolete. this is sending essentially nuke leer information. there are all these other issues the transportation department, hazardous materials information system 41 years old. then there is no software. maria: unbelievable. i don't think you have to be a technology genius to see that some second major security issue. >> how did this happen? you remember the ranch? there is so much that they had to transfer from a nuclear site to another because it is the only one that could tighten the screws on an icbm. this is consistent. but it did not get fixed? >> you can be certain hackers are using for the road equipmen

functions of the united states's nuclear forces such as enter continental missiles and bombers on an ibm series one computer era 1970s computing system and uses eight inch floppy discs. this report today from the gio, it's not just a report on nuclear weapons systems, it's on swaths of the federal government that are for a variety of reasons still using super old technology. this report was released today. on the same day that the state department didn't release but did widely leak its own report on how that huge crucial agency in our nation's government conducts its business and how it complies with the laws that says public officials should be accountable to the people, that public officials should be subject to the freedom of information act request in terms of their official communications and their actions should be kept on record and their stuff should be kept on file in case anybody wants to know. because of that report leaked today now we know officially how it works if you are say the head of a state department, if you are the secretary of state. now by the end of the year the s

ibm is more important. ibm is going higher. i think it is a bbb. that's the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade. ♪ no, you're not ♪ yogonna watch it! ♪tch it! ♪ ♪ we can't let you download on the goooooo! ♪ ♪ you'll just have to miss it! ♪ yeah, you'll just have to miss it! ♪ ♪ we can't let you download... uh, no thanks. i have x1 from xfinity so... don't fall for directv. xfinity lets you download your shows from anywhere. i used to like that song. >>> remember, when you're out of slits, you're out of beer. it is exactly why toll brothers chairman bob toll turned out that old line when he was describing the lack of

dow finishing up triple digits led higher by ibm, goldman sachs. a lot of different sectors involved. phil flynn, fox business contributor, watching action in oil and gold from the cme. and lori rothman on the floor of the new york stock exchange. lori, first to you, what is driving the rally today? reporter: couple different thoughts, david. first of all you have a triple-digit day on the dow, for the second consecutive day. that has not happened in six weeks. first back-to-back triple-digit gain on the dow in six weeks. is this good news, good news? the fed is about to raise interest rates to signal the u.s. economy is moving in the right direction or is this short-covering? jeffrey, ceo of double line capital, high-profile investor basically telling reuters he believes the two-day rally is nothing more than a short squeeze and u.s. stocks are dead money. a lot of chat about that comment on the floor today. we'll continue to watch these factors. meantime it really was a classic risk-on today if you look where gold is and oil is. oil pushing 50 bu

the department of veterans affairs tracks benefits claims and payroll on ibm mainframes that use code from the 1950s. many of the agencies do have plans to upgrade. >>> turning to our buried lead now, memorial day pra additionally marks the start of the driving system. more than 30 million of you will be driving. no matter where you're going, the beach or countryside, you'll likely drive over a bridge at some point and while you're on that bridge, try not to think about the terrifying state of our nation's aging highway infrastructure. cnn's rene marsh is here to kick off a new story. you investigated several bridges across the country and you found a troubling trend, i think it's fair to say. >> it's fair to say. not in good shape, many of these bridges 204 million times a day americans are driving over nearly 60,000 bridges that are in desperate need of repair. we're talking about major deterioration, cracks and other flaws that reduced its ability to support vehicles. 68,000 vehicles cross the arlington memorial bridge between d.c. and virginia every day. this is what drivers don't

and faced with a bad pr campaign, ibm actually changed its practice for a lot of those employees, and congress ended up changing the law. so when you think about social change, think facts, think solutions, but think creativity. today especially in this media-saturated market, it's more important than ever. so now let's move to the present time and see what we're doing now there are more challenges than ever. at $16.5 trillion -- sorry about that the i just went the wrong way. at 16.5 trillion dollars, pepgss are one of the world's largest sources of private capital. and we as taxpayers subsidize the private system of pensions and 401(k)s to the tune of $132 billion, so you're all sitting here, and you're listening to us, and you're saying, with that much money in the pension system, it must be doing a great job for people, right? well, it isn't. policymakers talk incessantly about the budget deficit in this country there's little talk about a huge and growing retyrant income definite sith, which is now standing at $7.7 trillion. 7.7 trillion, the retirement income deficit, which was

. >> what's caused more agita than a billion dollars in apple is 12 billion dollars in ibm. that was the one stock in the overall berkshire portfolio i respectfully disagree with. i have said it is a value trap and said so publicly. and it has been so far. but again, look, i don't -- to respect warren buffett and to have berkshire hathaway has the largest position in my portfolio i don't have to agree with every single investment decision and every single stock holding in the book. so in the case of apple, apple is an insanely great company. the stock looks fairly cheap. forced to go long or short i would two long it. or force to go long or short ibm i would go short it. and that is a much more massive position. so i worry about that a little more but still in the scheme of the size of berkshire hathaway, berkshire has lost 3, 4 billion. that's real money but it is sort of a rounding error at berkshire. >> so there you have it. not a position that many i think at this point probably disagree with. >> well yes. but how many times in the past has warren buffett held on to a --

ibm has infrastructure outsourcing. you have a $900 billion market for i.t. services, and ibm only has about $50 billion in revenue. it's less than 6% of market share. the rest is scattered through hundreds of vendors out there. alix: because of that, you aren't anticipating regulatory issues? >> it's too small, 6% of the total market. it should not spark any problems. scarlet: nevertheless, watch this space. thank you so much. it is time now for the bloomberg business flash, a look at some of the biggest business stories. ogle's self driving car project is headed for the motor city. the company is opening a self driving car center in detroit. google says having a facility in michigan will help them access top talent. regulators say they freeze the lender from restrictions last year. the u.s. accused wells fargo of not fixing problems fast enough. scarlet: lufthansa is struggling to find workers to fill hundreds of flight attendant jobs. low wages and years of labor conflict are complicating the airline's recruiting. but times a wants to hire 1400 cabin and c

dell combination coming up, and the servers up against everybody in the cloud including amazon, and ibm trying to come back at the same time, and i don't know how they do it fwlaushgsz is no piece of the category that is number one. >> well, they had sales in servers in particular that was quite strong which is surprising to people who follow the company, and 7% of actual growth and 10% or more in constant currency. >> you wonder if it is sustainable because of the overall business, and also, the overall sales going to the cloud provideer providers, and google talking about making their own chips and not just the service designs, and you wonder if that revenue is sustainable in the cash flow that is used to fuel new binzs for hp. >> it is true, but jettisoning enterprises is up 1% in constant currency last quarter will have margins that the company left behind. >> it is interesting that they spent all of the money on shares. the tech company saying that we have no form of investment whatsoever, and we will buy ourself, and it is a remarkable moment i think. >> and kate, there is a broad

this man ran sales at ibm. to take that job was a shock for me because it was such a nasty job to come in and have to clean up. we got to get him on the show. >> okay. >> this was a master stroke by him. >> i had an opportunity to speak with him briefly yesterday. >> you did? >> yeah. >> what'd you think? >> um -- >> straightforward guy. >> yeah, it was via phone. >> but still, you buried the lead, what was he like, right? >> straightforward and very much excited about the potential of this combination. my thought was he had to see how the market responded to it and of course the market responded very, very favorably, jim. because the idea -- and meg whitman explained it, if there's going to be consolidation you want to be ahead overit. the question is, well, if there is, would there be anybody looking at buying csc and trying to break up the deal. but when you get a response like this, that's highly unlikely. >> yeah, congratulations to him. that company was very -- you could see all the upgrades today csc, pe

but to get the general ibm does a lot of energy still bottled in the atmosphere will be watching the same part of the country that we are just talking about that happened this to the upper fifties. >>reporter: would come to to more you see a big change getting some '80s on the board and croats in a purse of the east and still a lot of shelling out to the peninsula and along the coast with the daytime heating will make a few stray showers. >>reporter: in the seven that we also revisit the '80s all the way through the holiday into early next week. >>robin winston: we want to go over the closures in the south they centocor are surrounding the structure fire for those of you getting ready to hit the road this is definitely a stretch to avoid 34 02 out commander renowned as a location of the fire and the caterer in the st. lawrence expressway and to assure you avoid at commander riopelle of directions at least for a few hours this will be an active seen even when a rock of the have to investigated right now this is not causing any major traffic delays but within the next few hours that is

the ibm deal. all of these things people did not want, president obama just sailed through with them. now you can even get the irs commissioner to admit that the agency has done. what are you going to do? >> that's when trying to change the equation. that's to say there is a safety valve here. we don't have to go to the executive branch. we have our own destiny and our own hands and that is through impeachment. it is a huge education. it's like the atrophied muscle that hasn't been used in 140 years. let's use it. let's do it. maria: congressmen chaffetz, on the tsa in the hearing that his only non, do you think the airport security should be privatized? >> i think it would go a long, long way. we have just over 450 airports. 2 million travelers on a daily basis. but then the decision of the local basis and you'll see better results. maria: good to have you in the program. thanks so much. we'll be watching. congressman jason chaffetz, a list of high-profile figures to work on a strict fund-raising

we all look to ibm because we're all curious about it. what's the board see and what is the plan there. it looks like hp wants to put all growth in one area. to your point, guy, do they want to use the balance sheet to be able to make some kind of an acquisition. there are plenty of acquisitions out there. who knows what direction she really wants to bring this thing. so i don't know anything specific right now. but i think it's an interesting thing. she's obviously focused on growth. and are they looking for security. where would she want to go, that would make sense to me. >> buyer of the new company or hpe? >> i would be buyer hpe. but i would want to trade for a bit. >> still ahead, the lucrative world of esports. what is three-time nba champion fox saying the space could be offering up the next big sports gold mine. find out where hoe's pe's putti money to work right now. >>> here's what else is coming up on fast. >> america, this man is getting closer to being your next president. >> my new game is trump, the game. >> the game where

today it's their mobile app running on the ibm cloud. across every transaction, the hybrid cloud helps their data move quickly and securely. our clients are building out features and pushing updates faster, on five continents. with the ibm cloud, they can move at the speed of any start-up. there's no one no one surface...e., no one speed... no one way of driving on each and every road. but there is one car that can conquer them all. the mercedes-benz c-class. five driving modes let you customize the steering, shift points, and suspension to fit the mood you're in... and the road you're on. the 2016 c-class. lease the c300 for $359 a month at your local mercedes-benz dealer. >>> i'm sharon epperson and here's your cnbc news update. secretary of state john kerry delivering opening remarks at a white house briefing in ho chi minh city and. >> this is not about china. nothing that we did here or are doing here is focused on china. it is focused on the fastest growing marketplace in the world. it's focused on a rules-based order that we have