>> the long search may be over. satya nadella maybe microsoft's new chief executive and bill gates could be out as chairman. fortunes forvision u.s. tech. amazon fourth-quarter earnings are hit by lower international sales growth and higher shipping cost while google gets a boost from higher retail spending. >> lvmh reports stronger sales, seeing growth in fashion and a rebound in leather goods. >> welcome to "countdown."
>> it is 6:00 here in london. bloomberg reporters are standing by across the world, ready to deliver the stories that will drive your day. caroline has the details on the insider who may be taking the helm at microsoft. hans nichols is environment with different earnings reports from google and amazon. he is also looking at the pricey ads for the super bowl. >> hannah kearney has more on the rebound in revenue at lvmh. ryan chilcote lookahead to a meeting. he tells us why a couple of beers could breathe life into europe's industry. john ferro is sizing up competition ahead of bt earnings. >> plus, the lunar new year kicks off today. we are taking a look at where in the world an estimated 100 million chinese tourists are taking their spending power for the weeklong holiday. we talk to the founders of the hotel booking site, mr. and mrs. smith.com next hour.
>> microsoft's five-month long ceo search may finally be coming to an end. the board is said to be making satya nadella the new chief. he is the head of the company's and her present cloud unit. the board is also said to be considering any chairman to take over for bill gates. here with more is caroline hyde. potentialt with the ceo, you met him recently. >> i did, in december. , very softlyng man spoken, interested, interesting. not forthright, not a huge presence. he was very nice, very welcoming. very easy to talk to. he could become the third ceo at microsoft has ever had. this is a company with more than a 40 year history. only ever been led by bill gates and steve ballmer. after five long months, we have
whittled our way down from more than a hundred candidates. gone is tony bates, he is not going to be ceo. neither is chief operating officer kevin turner. it could be a man who has been at microsoft for more than 20 years. in 1992.ella joined he is at the forefront of the development for microsoft at the moment. >> benefits in that business ,elped drive the revenues didn't they? >> it doubled in the last quarter. these cloud offerings are growing. since he took over the server unit, he has grown revenues there a 20%. overall, this company is still managing to be a winner in the technology space even though it is such an old and huge company. he told me in december how excited he finds it a place to work. >> microsoft is an exciting place to be at right now. if you look at what we are doing
,ith our devices and services it is an amazing spot to be in. both innovating and taking to market and having broad impact across society at large. very enthusiastic gentleman. not as large a presence as steve ballmer is. apparently he has a lot of respect among the engineers. it is what they need to see, someone who is respected by the whole of microsoft. bill gates could be stepping down as chairman. he has been chairman since 1981. he has told us in an interview earlier this month that he wants to work fully on philanthropy. that is his full-time job. the bill and melinda gates foundation. it could be set you nadella oracle it could be -- or it could be john thompson. >> caroline, thanks. >> amazon earnings missed estimates as shipping costs hit
holiday profits. hans nichols joins us from berlin. give us the details. >> it is a bit of a mixed result. finally, for amazon, profits outstripped revenues. yet investors punished it. 20%, thatere only up is the smallest gain they have had in some time, since 2009 and believe. wantedrs decided they strong revenue growth and they're not as interested in profits. $239 million, at more than twice what they had done before. strong growth there and yet they don't see the explosive growth on their revenue side. that is why the stock was initially down. then it came down all the way -- it climbed a little bit and ended at 5%. there may be some changes to amazon prime, the two-day shipping service, $79 for an
annual fee. they may be increasing that i as much as $40. that is because of shipping costs, also the cost of fuel. what we see here is amazon finally having a strong profit for the entire year of 2013. they finally turn a profit. last year, they had some 40 million in losses. yet investors are now saying, we want to keep seeing revenue growth. we are less concerned about profits. we will see what happens on -- when it opens later today in the states. >> let's talk about google. different fortunes at this tech business. >> they beat estimates. google's story is very simple. they are figuring out mobile ads. they beat estimates on the revenue and profit sides. their stock soared in after-hours trading. we will be looking later on how google plans to monetize and trade off of the ads of ads when
it comes to the super bowl. google is in the business of advertising. they always seem to take a slice. they had a very good holiday quarter, much better than traditional retailers. we saw bad figures from walmart, best buy. it looks like google and the fourth quarter in quite a position of strength. >> thank you very much. >> lvmh reporting just after the close last night, it delivered in two key areas. manus cranny is here to talk us through the numbers. is it too early to call a turnaround at lvmh? >> i think it probably is. what is heartening is, last april we shattered because fashion and leather, the beast of the we vuitton slowed down. they have turned it around a little bit. leather rise. and for growth.k
if you want to look at the we vuitton in the big picture of luxury, they have grown at twice the rate of the market. it is not something that is on the floor. fashion and leather are important. turning from canvas to leather. they are moving to less stores, taking the entire experience among brand and product up the value chain so that you get that idea of exclusivity. perkins and cosmetics saw a double-digit rise. cosmetics saw a double-digit rise. performance.od certainly a beginning of a reconstruction in lvmh. >> what about china? that is going to be key to the global brands. >> it is. and are you doing in china what is going on in china itself?
.e know the story, a new regime these is a hard luxury are under pressure. the democratics are -- demographics are fascinating. in 1995, 90% of all purges aboard done by men. by women.0% is a newou have got is class, a new lady who is wealthy, who wants main fashion. f's. female, fashion addict and fashion forward. you have to get the right product. need instant apparel, address, a code coat for an event, getting the product right, apparel focus in china is what the luxury companies have got to do. >> thank you. >> decameron and french
cameron and david french president francois hollande agreed to meet today. ryan chilcote is following the story. >> what could two middle-aged men enjoy doing more? speaking, they are going to meet at an airbase and go to a pub. at the top of the agenda is defense. they're going to commit $200 million to early developmental work on a drone, looking at building a drone together. the prep work has been done by be a -- bae. they have a prototype that just flew its first flight late last year. named after the celtic god of thunder. gave the u.n. a drone. last year. it has been used in congo, the
crash however. they are also going to talk about missiles and spending 500 million pounds to acquire some .issiles from mbda these would be mounted on helicopters to attract -- attack ships. >> cameron and a number of his ministers have made comments that the french government, high spending, high tax government. how is the relationship between the two countries? >> i think it has been awkward. the original deal in terms of this was called the lancaster agreement. that came back in 2010. that was cameron and sarkozy. these guys, the fact that cameron has pulled away suggesting that britain would like to cut its own deal, that has been a problem. they have been on the hush-hush, cooperating in terms of nukes.
they don't talk about that too much. there was a plan for the british to have their at 35 -- f-35 retrofitted so it could be launched from french aircraft carriers. they decided that was too much money. it has been slow in coming. >> ryan, thank you. >> apparently the french president is bringing his red wine. >> will he finished it? probably not. photons and john have stories involving sports. hans and john have stories involving sports. >> we are talking about how google is selling ads on ads. this is part of the super bowl extravaganza. even for non-fans like yourself, you can watch the super bowl just for the ads. john ferro, my colleague in london is a real sports guy. i will toss it over to him. earnings looking at bt
and you can't talk about bt without talking about sky. it is a battle for sports rights. you have record acquisitions over at sky for the last quarter , how many customers did bt get? we will find out in about 48 minutes. >> thanks. >> just ahead, amazon sees signs of trouble in its sales growth outside the u.s. thenext guest says retailers ability to plan long-term is what sets it apart. stay with us on "countdown." ♪
>> time for today's company news. google's fourth-quarter sales topped estimates. thanue rose 11% to more $13 billion. share at the tech giant are up in after hours trading. revenue rose 11% to $13 billion. google fine-tuned its mobile strategy recently by exiting smartphone manufacturing and selling its motorola handset unit. yahoo! attempts to break into identifies an e-mail hacking attempt. yahoo! is the biggest u.s. web
portal and yahoo! mail has more than 100 million daily users. volkswagen is seeking to hire former daimler executive i'm cris rentschler to head its trucks division. he resigned from mercedes-benz. he previously ran the truck division for almost a decade. welcome back to "countdown." >> time in london, 6:17. amazon's governance of u.s. e-commerce isn't translating globally. sales growth in other countries slow down. with the global e-commerce market expected to grow this year, is amazon thinking long-term? our next guest says that is exactly what the online retailer is good at. is stephen mader. thanks for joining us. profit and sales missed estimates. it is doing well in the u.s. but
its dominance and u.s. e-commerce doesn't seem to be translating globally quite yet. why is that? >> we were a little bit surprised as well at the weakness of their international markets. i think it is really showcasing where their long-term vision is, using that prime membership as the middle point and intersection between the services at amazon. video, mp3, music and books. a lot of that content that amazon has been investing in hasn't made its way yet. >> it is investing in long-term r&d. can it keep doing that at the same time reaching its profitability targets? >> it is quite a balancing act. they have publicly stated they have a five to seven year long-term vision of where they expect to get some of that return on their investments. on the same time, they can also start tweaking some of the profitability questions. they are looking at maybe increasing the cost of prime
membership in the u.s. some of the other firms they have latched like amazon pantry is aimed at lowering the overall cost of shipping. continuously hit on cost per shipment. >> let's talk about the things they are doing. they launched fresh and the united states. it hasn't been launched elsewhere. are they doing something very different in terms of online grocery delivery in the u.s.? what do we have to look forward to when they want lunch -- when they launch here? >> it is similar to say in the london area, alcado. the benefit is not just fresh delivery but the whole assortment of everything amazon stocks. you have millions and millions of products. >> era focusing very much on last mile fulfillment.
this is the logistics of getting it to you very quickly. it is all about speed. for me as a consumer, i also care about the process being easy and making sure i am in when they turn up. >> amazon is incredibly focused on that. i think there is always going to be an aspect of price in every conversation. aboutsingly it is more speed, convenience. we have seen in the u.k., they have launched sunday delivery. they have been doing that in the u.s. for a bit as well. they are continuously trying to innovate. that is how they can beat the traditional retailers. >> thank you. we will get further thoughts on msn and talk about the fortunes of google as well. stay with us. ♪
>> welcome back to "countdown." >> stephen is here, stephen mader. that's talk about google. it has been a big few weeks when it comes to m&a for google. it bought last, you can tell us what that is and remind our viewers. it sold the motorola handset business. ,t invested in this ai company deeper mind. what is it up to? a veryink they have strong perspective on what the future is for google. they are very focused right now
on giving back to the business of search, getting back to the business of software and platforms. the part of the acquisition they have been making is an artificial intelligence. >> is that because they want us to be able to search for images? is it going to help improve their image searching or is it about us thinking about something and without even typing, a search appears? >> i think they are trying to be more predictive about what we are looking for. if you look at what they have done with google now on the android handset, it is about predicting based on what is in your calendar, what you have searched before. trying to offer you relevant results. the acquisitions they have been making are all about increasing the sophistication around that. they can then charge more for their advertising. >> how do they feel about hardware? they sold the motorola handset business. the more experimental side of has been experimenting with things like driverless cars.
there is a lot of hardware there. divide between short-term and long-term. everything coming out of google x, their innovation lab, that is very long-term of where they see the future going. some of the motorola divestiture, that was all around -- we have to make sure we have a handset too. they acquired all the patents that motorola has and now they have divested the hardware business to get back to the core of software. >> is this fear of being left behind? buying nest for instance, is it a fear of being left behind? investors shouldn't mind placing these bets which might actually not pay off? >> i think that is a fair assessment. they have a clear vision of sensors being very important. everyone knows about the health
center craze. -- nest is good at that type of hardware. they have smoke detectors, thermostat, a clear roadmap of where they want to go with the product pipeline. google sees all of that data acquisition being useful. >> with all of these big tech companies, it is difficult to work out who are the big competitors. they all seem to want to compete with each other in everything. who are the competitors for google? is it microsoft, apple, amazon? they overlap. >> they do. fournk there is very much businesses going head-to-head. amazon, facebook, google and apple. all of them have such enormous amounts of cash reserves that they are just going after and acquiring new companies. >> thank you very much, great to get your thoughts.
>> these other bloomberg top headlines today. six danish ministers quit. the social democrat prime minister pushed a $1.5 billion stake sale. the deal gives goldman sachs veto power in exchange for his investment. football governing body is demanding information on working conditions for the 2022 world cup and qatar. this follows the reported deaths of 185 construction workers last year. they qatar committee overseeing the facilities will provide the report in the next two weeks. lawyers for the u.s. students amanda knox and her codefendant have valid to appeal their
murder convictions to italy's highest court. yesterday an italian appeals court upheld a guilty verdict in the murder of amanda's critics remain -- british roommate. welcome to "countdown." i am mark barton. >> i am anna edwards. time in london is 6:31. broadcasting beverly between bt and sky -- rivalry between bt and sky. investors are focusing on the company countries and the launched sports channel. jonathan ferro joins us for more. pitting these two titans of the u.k. business scene against each other. >> i don't think you can talk about one without talking about the other. we saw a record acquisitions at sky. the big question is how well has
bt done? i spent almost one billion pounds to get the champions league rights. the big issue is not the right now but how this plays out in the next couple of years. just check out how many -- how much ram your league rights have ballooned. if you want to buy them, sky paid 1.6 billion pounds for three seasons. that jumped to 2.2 billion in 2013. the question is how much will they pay when the next auction comes about? that is at the end of this year at the start of 2015. look at that inflation. year back inunds a 92. now, 560 million. how does sky absorb these costs? bt is coming hard to push sky out of the way. >> what is the limit? , whatas asking yesterday would you be prepared to pay/
? that is the classic question he never wants to answer. he can't give away his hand. they did describe that 40% inflation they saw year on year. they describe that as a one-off. there is a difference. , this is ainvestor bit of an overhang on both sides. the last thing you want is a race to the bottom, bt putting up a lot of money to push sky out but putting themselves at risk at the same time. >> you wonder if one day they might come to an agreement. >> who knows? it is not just about football either. you could see bt go out there after golf and other sports. >> sky was trying to change the game, move things away from sports. drama, you wonder whether bt is going to get into that. >> it is not all about tv either. a lot of noise on the sports side of things, but have a look at something that sky is doing.
cozying up with vodafone. there is a big poster in the window that advertises sky sports with any contract on your mobile. whether that becomes more formal remains to be seen. bt pushing into sky's territory. sky are pushing back into bt's territory on the telephone side of things. mentioned the two letters bt. it is always, our competition. >> a much more mature sports broadcaster. bt have got big ambitions. >> thank you very much. >> here is a story on a different type of football, the super bowl will kick off this sunday in new york. google has been cashing in on the event thanks to youtube. we got earnings last night from google. that spring in hans nichols in berlin. who is going to win the super bowl? >> the seahawks. my hometown, no question. although they are down in the sporting line. who is going to win is google.
they're going to win before and aspectickoff because the of the super bowl is such a big part of the event. is aook at an ad, what 32nd spot this year? around $4 million. youtube preloads them. you see ads for mercedes, dan and cheerios. i create a buzz and then google aims to monetize that. in 2013, some $66 billion in ad revenue. google got, i believe, $6 billion of that. when you take a look at how many ads were watched on youtube after-the-fact, this is 2013, 265 million ads. that was 2.5 times more and in 2012 and one third of those ads were watched before the game. this is before the game and after the game. what we have here is google's attempt to really sell ads off of the ads.
we talked about this yesterday. their goal is to arrange the information in the world and sell ads against it. now what they are doing, arranging the ads of the world and selling ads against those ads. there still will be a cap edition on which ad is going to thehe most viral for hundred millions of americans tuning in. if they didn't see that, they can go back to youtube and watch it. it is another way they can watch it on mobile. another way google is seeking to monetize event. perhaps in this case it is a third-party relation. it has paid off for them before. we will see how strong their ads are. you have to watch the ads. the ads are always clever. >> we have a guest on at 7:10 to talk about ads and he has listed his top three of all time. you might remember one or two. apple's 1984 ad, wazzup by budweiser -- in your eyes, what
was the great super bowl ad that you remember? >> you have to go with 1984. that captured everything. that ad has stood up to the test of time. historians are going to be writing about that at but it was the advent of the personal computer, the way things were changing. you see steve jobs' genius in all this. interesting about that ad, steve jobs wanted to create something similar to that for barack obama in 2012. knows, they know a thing or two about ads. i'm sure you like the budweiser one too. they have the ones outside of westminster. >> please don't do any kind of impersonation as the budweiser advertising slogan. it would be painful television for everybody. thank you so much, hans nichols in berlin. >> it is the largest display for the french jeweler cartier which
was bought by the response group. cartier exhibition is running in paris. bloomberg went for a tour. >> this tiara was won by kate middleton at her wedding with prince william. bought in 1936 by the duke of york, it is just one piece of royal jewelry on display at the cartier exhibition in paris. it also includes this flower brooch, one of queen elizabeth's personal favorites. >> you would have to be rich like a royal to a 4-wood of these sparkling tiaras. founded in 1847, cartier quickly landed the nickname jeweler to the kings. this necklace alone ordered by the maharajah is estimated to be worth around $50 million. ,eyond the blinding emeralds
you will find clocks, watches, dresses and paintings. and the favorite pattern of cartier designers. >> he was very inspired by history. that is still today the incarnation of french style area >> a french style that has attracted american personalities from grace kelly to liz taylor. she once received a million dollar diamond necklace from a third husband. >> you say cartier like you say picasso. >> cartier's more recent business may be losing some of its sparkle. the company's own ridgemont missed estimates last quarter to two currency swings and a decline in luxury sales in china. tom gibson, bloomberg. break,ng up after the our next guest will analyze the great football matches taking place over the next few days. stay with us. ♪
the move comes as zynga looks to regain its footing in casual videogames. the search may be over. microsoft's enterprise and cloud chief satya nadella they become the new ceo. the board is also said to be discussing replacing bill gates as chairman. labor union is seeking a raise in workers' base salaries for the first time in five years. rosests estimate profits to a record this fiscal year. the demand comes as shinzo abe urged the minis to raise wages faster than the cost of living. ."lcome back to "countdown i am anna edwards. let's talk sports. rivalries football this weekend. and milanly on sunday versus event is on'-- versus juventus on monday. let's kick it off.
massive, massive game. density now top of the table. the way they played has changed this season. >> isn't it great? i know you don't support any team. and not see manchester united in one of the huge games -- a lot of people are saying the season is on the line on monday. this is manchester city at home. 2013/14.n the whole of 41, sorry. that is three behind this year. 2.16 last season. a massive 3.45, it really emphasizes the change in style. he has got them playing much more expansive football. it is very interesting to look at the stats and analytics to show it is not just one goal more per match, it is over that. conversion rate is interesting to.
you are always saying, it is only 5%. that is a lot. they have been taking 17.7% of their chances as opposed to 12.1%. given that they are creating so many more, that is why they have been doing so well. the thing about the game where they won 5-1, it wasn't surprised. this is the power. jokes laying around that they might do it again. this is an extraordinary football team. one is almostme, certainly out of the game. >> they have so many players scoring goals. >> but they only one of -- only have one who is top five strikers in the world. read member -- >> we looked at it. the is so interesting is chelsea game.
--ast-minute mistake manchester city goals conceded due to errors was four up to and including the chelsea game. since that game, zero. >> yeah. that is good for england. interesting,at is not only the headlines about them going forward and how terrific they are very -- they are. >> who do you think will come out on top? >> it is interesting. there he go to man city and play the same way? i personally think it is going to be much tighter than people think. i think it might be a draw. i think they should try and win the game but it could be tight. they are three points ahead, aren't they? >> we are better than that.
>> big-game in italy. why do we care? >> we care because of this extraordinary story. we haven't got long enough to talk about it. this is the biggest game in italy. it is not a city, derby. not much love lost at all. a new coach this season. they were flying, first 12 matches, 2.1 points per match. 2.4 goals per match. they were right up there. her ship has come in. they said last -- new ownership has come in. all the issues about ownership and fans, the story -- we don't have time to go into it. the fans pressure the board not to sell it. they caved in. it has affected them so badly on the field. 0.9 points per match. that is an extraordinary change.
>> are things going to get worse? >> they will. rome is putting pressure on them -- i am afraid the derby there is a tradition of upsets in the game. it would be an upset. i have a horrible feeling it could be messy. city --ilan as a --the interesting thing is they have a habit of winning big games. i think it could be really embarrassing. it could be something for milan fans to cheer. >> something for john ferro to cheer. >> i can hear howls of anguish. >> he will have a lot to be angry about. thanks. thank you both. coming up, a delivery drone
>> the confluence. it is what the french president and british prime minister are getting together to discuss. the americans have one upped it. there is a company that has designed a beer delivering drone. this is the ad. this is fantastic. it has gone viral as you can imagine. there goes the dear, that is a 12 pack. a logger, noel and america. it is off to some fishermen. they have just called it in. >> it could deliver anything, frankly. it just makes the most headlines. know, the faaus has banned the use of drones for commercial delivery so far. this was just a publicity stunt. the guy didn't think he was going to get a call from the faa because this was delivered for free for the purposes of
creating the commercial that we are now showing. yet he did. he got two calls from the faa. >> what is the beer like? >> i haven't tried it. apparently they don't do transatlantic flights yet. beer, so awfulan is probably the answer. >> i'm going to forward all hate mail to you. where would you like to take us? >> i will show you this. dave will talk about it. that is how i like to do it. it is the six nations. that is a couple of the english players. he says, we have no fear. the reason he says that is because, as you know, a lot of will be uncapped players and very young players who haven't tasted the cauldron which is playing in paris.
>> it is going to be fascinating. i know about that cauldron. we start with a nice dropkick against italy. it is interesting that the majority of fans will be chairing for us. that is what i like about the young english back line. joking aside -- it is petty. >> one of the back line is a winger called jack. he is so baby faced, he went to see the wolf of wall street this week. he is 20 years old, he was asked for id, they didn't let him in. >> the other big sporting event, the super bowl. talking about the american sport after making a horrible comment about beer. i just asked if you knew what omaha-omaha was. you said you didn't. make sure you watch peyton manning at the line of scrimmage. whenever they get their first possession, what his play calling.
you can hear what he shouts. you can hear the call. lately he has been shouting, omaha. fat montana at one point. omaha was like, hurry up, get me the ball. because everyone knows what it is now, it is going to mean something else. if you watch the way he dictates everything, points to defenders, tells everyone what to do, it is the ultimate man in charge. it is very rare we get to see someone doing that. payton is trying to become the second oldest after john elway to win a super bowl. the old guy is going to do it. that is going to be the story. >> you need -- a bit of a machine to translate. i was going to say, on the subject of this, there is a rugby game coming up.
this adds a new dimension to your story. francois hollande is ahead of the game, having a pint with even cameron. let's have the sporting dimension. this is the daily telegraph. cap potato britain might as well stay in bed by 2013. according to some research by u.k. active, the average person in the u.k. by 2030 will use only 25% more energy in a day than if that person had stayed in bed all day. i don't know whether this is supposed to incentivize us to exercise or make a throw in the towel and say, i was a stay in bed all day. i guess some of our viewers are in bed now. do with an information what you will. you might feel like staying there. rational people are in bed right now. this is a study by u.k. active trying to increase activity levels.
>> long search may be over. satya nadella maybe microsoft's new chief executive and bill gates could be out as chairman. fourth-quarter earnings are hit by lower international sales growth and higher holiday shipping cost while google's topline gets a boost from higher retail spending on ads. >> lvmh reports stronger sales, seeing growth in fashion and a rebound in leather goods. hello, welcome to "countdown."