oracle reported an increase in cloud software. what kind of progress are we seeing and what more do you want to see? >> won the biggest things you see when you look at a company undergoing transition is cloud license sales. bookings were strong in the cloud and they are forecasting 60% growth in cloud revenue for next year. when you have companies moved to the cloud, you will give up on the license fee and make it up in the subscription. so there is a lot of that going on and the earnings as well. emily: oracle is really banking on cloud to compete with salesforce and sap. are they on track? >> they are not on track against salesforce. salesforce is running away with it, just like the golden state warriors. salesforce.com is laps ahead. there's a little overlap, but we think they are way ahead. emily: big changes at microsoft cleaning house there. stephen elop is out. this is the boldest move he has made since becoming ceo. what do you make of it? >> most people are shopcked that elop was still there. amy hood is going after the e

the cloud numbers are coming in come --ll for oracle going forward. we want to bring in christopher wolf on the other really big story of the day. lee, viceimmy president at j.p. morgan, dying very unexpectedly at the age of 62. used to work with him, right? there heer: when i was was already regarded as a lion. he had everyone's respect for his business acumen. this is a sad day. alix: in your experience of being around him even in a general way, what made him so different? christopher: his passion for the business, and his intensity. those two things, a lot of people look to that as a sign of leadership in the way he was able to see through a lot of things. alix: and so many ways, he created private equity. how hard is it to fill that kind of hole for a big lie -- a big bank like jpmorgan? when the founder is no longer with us? christopher: large firms tend to pth. lots of deb some of the biggest firms have pretty big inches. that as an opportunity to build teams. it's a sad day and a tough thing, but at the end of the day , he did great things for

we do have oracle earnings crafting right now. julie hyman has those numbers. julie: it looks like earnings-per-share are coming in well below what analysts had estimated. what analysts is had been anticipating. of $10.7revenue billion is a declined year-over-year. that was expected, but the decline looks to be larger than analysts anticipated. the company is reporting it looks like $10.7 billion. the key for oracle is going to be how many of its customers are i -- are migrating to the cloud as a platform for services. it says here that the company's total cloud revenues rose 28 percent, but that increase would have been up 34%. --stant revenues were up 5% fell by 5%, but would have been up by 3%. analysts and investors were looking for a decrease based on the effects of currencies. as i mentioned, the software as a service and the platform as a service for revenue, coming in at $16 million. cloud revenue structure coming in at $160 million. the company said cloud sales will translate into more revenue and profits, and that has been the holy grail for so many o

john scully has a plan to disrupt ibm, salesforce, and oracle. he is here to tell us a about his new company. motorola solutions data and drones to fight crime, but is it leading to a robocop future? to our lead. dropbox growing rapidly. in an exclusive interview, ceo told me that user base has jumped to 400 million. it is being used in 8 million businesses. dropbox is valued at $10 billion. rivals are catching up. microsoft is gaining ground at 19% and box at 15%. i asked him about the company's rapid rise and plans to go public. >> 8 million businesses. a ton of room to grow. if you look at how valuable that problem is. the things that people put in their dropbox are the most valuable. making a company's team productive, a safe place for their information, that's extremely valuable things. we just partnered with microsoft last year to build dropbox natively into office. there is a lot going on. investors see the potential. >> you always said that drop box is a standalone company. do you have that same conviction today? >> being independent allo

their backing oracle -- and backing oracle are those that write the software. and backing google are those like yahoo! and red hat and hp. google will have a chance to argue it had fair use of the technology. more trouble could be ahead for google. a team of yelp researchers along with a former scholar, ftc advisor tim wu, wrote a report about how google favors its own services with searches. this -- i will take a different side of this just because i can. how could you possibly have a problem with what google does when people put in a search and they get what they want? guest: they are not getting what they want, but what they -- but what google want them to want. you will see that they will be led to google plus content rather than the content that google's own algorithm is saying is best. cory: do we really know what they're up over them is saying? vince: they did an eight-b test using google's own algorithm and did an a-b test with google's results. we travel to oxford to present the paper. >> should we be worried about that given the biased issues you have

john scully has a plan to disrupt ibm, salesforce, and oracle. he is here to tell us a about his new company. motorola solutions is using big data and drones to fight crime but is it leading to a robocop future? all of that, ahead on "bloomberg west." to our lead. dropbox growing rapidly. in an exclusive interview, ceo told me that user base has jumped to 400 million. up from 300 million a few years ago. it is being used in 8 million businesses. dropbox is valued at $10 billion. rivals are catching up. while dropbox still leads with 24% share microsoft is gaining ground at 19% and box at 15%. i sat down with the founder and asked him about the company's rapid rise and plans to go public. >> 8 million businesses. there are orders of magnitude more than that in the world. there are billions of people on the internet. a ton of room to grow. if you look at how valuable that problem is. the things that people put in their dropbox are the most important possessions. if your house were burning down you would go get it. for a company making a company's ,

shares of oracle are lower in premarket trading. oracle was hurt by currency fluctuations and customers moving to more cloud-based computing. oracle has been overhauling its products to take advantage of the shift to the cloud. reports that lester holt will become the permanent anchor for nbc's nightly news. he replaced brian williams four months ago. limbs was suspended for exaggerating his role during an attack on a helicopter in iraq. -- williams was suspended. he will stay with the network. he will move to cable channel and msnbc. olivia: let's get you started with the top five things you need to know about this morning. matt: we will start with the fed. it was a juggle here. there are some other issues today. the fed issued the following statement in a news conference saying it's going to downgraded spew up the economy but still normalize interest rates. wall street economists are trading places on when the central bank will raise interest rates. the group provides its forecast for september. goldman sachs sing and anticipates

oracle chair larry ellison is fielding questions today. announcing more than 24 new cloud services at an event at company headquarters south of san francisco. oracle says new products are designed to move all data into its cloud. last week's earnings miss, cost chairs to fall the most in two years. we will have updates on what ellison says today. taylor swift takes on apple and wins. the biggest name in problem is -- music calling out the world's worst valuable company on twitter. she was upset that apple was not going to pay musicians during the free trial of its new music streaming service, apple music. in less than 24 hours, the senior vice president for internet and software change the policy. he tweeted at swift -- "we hear you." the debate over royalties is far from over. joining us, our guests. every time we have a conversation about how much artists, producers, songwriters are paid it is so confusing. there are so many different scenarios whether you're listening on spotify for free, whether you are paying premium. just how exactly

a lower court ruled in favor of oracle. the justices declined to hear google's appeal of the ruling. those are your latest top stories. still ahead, stocks still tumbling on greece. the s&p wiping out the gains for the year. the chief market strategist weighs in on the action next. ♪ stocks are taking a hit. the chief u.s. market strateg ist joins us with his call on the s&p. julie hyman with us for context. what do you think? not sure looking out six months from now this will be the most important story of the year. i think we will look back and realize the earnings picture is more important than this greek story. we were talking before we went on air. this may be more of a shoulder shrug then we would have feared it to be. but givenike a lot, the severity of the news item, probably not a big deal. alix: we are coming up to earnings season. we have had the issue of the stronger dollar. julie: we have a lot of companies reliant on europe. some of the biggest declines today from goodyear tire are 4 ofanies that get 1/ reve

apple and oracle have their cash units based in reno. betty: why are they based in re know? nabila: it is about taxes. it is the casinos, of course. betty: that is our new home. thank you so much. cash, "it is johnny shot a man in reno just to watch him die." opec makes the decision to keep its targets unchanged. betty: what that will mean for the markets, coming up next. ♪ ♪ back to theme bloomberg market day, i am betty liu here with mark crumpton. there is a takeover in the drug distribution industry. car kill health has agreed to buy harvard drugs from port square partners. harvard distributes generics and over-the-counter drugs. it will give cardinal special packages that providers want. experimentaly an drug lowers bad cholesterol more than older drugs. officials are questioned whether to approve it or wait for additional results. this is the first in a new class of cholesterol drugs to come before the -- monster is recalling nearly 540,000 cars and truck's in the u.s. and canada. the automaker says they need to fix air bags that can explode with too much force. th

we have oracle earnings crossing right now. julie hyman has those numbers. julie: it looks like the earnings-per-share coming in well below analysts estimate. $.87 is what analysts had been anticipating. adjusted

john scully has a plan to disrupt ibm, salesforce, and oracle. he is here to tell us

i think you're going to see different points of view from microsoft, ibm, oracle, and others. i think that this is a fairly new market that has yet to really play out. interested tobe see if more consolidation is coming. to leave it there. box ceo aaron levy and bahia ibm.om him and betty, i send it back to you. pimm: that was the box ceo and the ibm analytics senior vice president. still ahead, germany downplays chances of a quick deal with greece. betty: that is after the greek government rejected the latest offer from creditors. we will have the latest on how the negotiations in brussels are turning out after the break. ♪ pimm: welcome back to "bloomberg market day." i'm pimm fox here with betty liu. betty: stocks are in the red. one group bucking the trend is housing homeowners. julie hyman with a check on their trade. estimatesfits beating . quarters of 18%. the companyp 28% of benefited from increased that we have seen and prices. revenue of 32%. the shares are up 42%. among the best performers in the s&p 500. that is fretting to the other homebuilders as well today. w

john scully has a plan to disrupt ibm, salesforce, and oracle. he is here to tell us a about his new company. motorola solutions data and

we play in quite specific areas of software that is a little different than erp systems like oracle or sap or salesforce. emily: what about the cloud? what is the hp strategy for the public cloud? are you going to be a cloud or sell to the cloud? do you plan to take on amazon and google? emily: our public cloud is not designed to compete with azure or google. what we see most enterprises wanting to do is not to put everything in a public cloud. so if you want only convenience you might go to a public cloud but if you want security, you want to be in a private cloud. our strategy is hybrid cloud. your cloud, the way that is right for your company and your industry. emily: a lot of deals happening. intel. do you see a segment that could be transformed? meg: i think why you're seeing an increase in m&a activity is the industry is changing. every 10 or 15 years in technology i see techtonic plate shifts. web 1.0 to now. the industry rearranges itself. we are back in the m&a game. we will augment our innovation internally, what we call organic innovation but we want to be smart. emily: you

apple oracle, and other tech giants are now the biggest rise of debt. what do you think of that? erik: i think he goes to show you and reminds us once again that all you need to do is follow the money. the money is going to reno. that is where apple's money management subsidiary is based. get a hotel in reno for $60 a night. is a lot better than ellie or san francisco or boston. the point here is that they have so much cash. you take the seven largest u.s. tech firms with google oracle apple, etc. -- they have $500 billion of money they have to invest. they are not hedge funds. have to find somewhere relatively safe to park it. they are selling all the investment grade bonds issuance. stephanie: more people i'm not crying for. those your top five. for now, we have a number another -- another number. we have 30 minutes away from the labor report. joining us now is limited intelligence is own chief u.s. economist carl. what you expect? carl: i think we should see a return to trend after a very soft first-quarter. that means that payroll gains are close to 240,000. i think the surpr

alix: we had news out today that apple and oracle are buying a lot of corporate bonds. there's a lot of illiquidity in the bond market. is that what we will see trade unraveling here? eric: that's a great question. want a sharp repricing of rates that leads to a blowout in credit. when you have seen is that regulations and capital requirements have made it difficult for traditional market makers to make the markets deep in liquid. when you have a cup a like apple that is gobbling up more debt, that reduces liquidity more. of have seen what like liquidity can do in traditional, sovereign markets. c, thank you for joining me. we will be right back. ♪ alix: welcome back to the "bloomberg market day." jobsubt this morning's number was strong, 280,000 jobs added in may. 5.5% unemployment rate. me is marty music, the ceo of paycheck, the number two payroll processor in the united states, specializing in small and medium-size businesses. he basically helps you get paid. great to have you here on this day. when you take a look at the number, does it reflect what you are seein

oracle is going all in on the cloud. it unveiled two dozen new services. clients can move their applications out of the data center and into the cloud. ellison was not always this enthusiastic about the cloud. in 2008, he said that cloud computing was a fad. and in soccer, the u.s. has reached the quarterfinals of the u.s. world cup in candada. alex morgan and carly lloyd had goals. the u.s. have not given up the goal in the last 32 minutes of playing time. next up china. tom: 8 games. brendan: america has amazing defense. we are not is good on offense. we keep winning in this world cup but we do not win in the fashion we expected. vonnie: the colombian goalkeeper is a 20-year-old -- tom: very interesting. the nhl, they do not score enough goals. they have not scored a goal against the usa in 19 games? brendan: their gaattack is not where everyone hoped it would be. tom: the data check. equities, bonds, commodities going nowhere. the euro 1.12. i'll duck when you throw the pencil at me. on to the next screen. good equity markets 12.7 for risk on. greek yie

. ♪ emily: a story that we are watching, the oracle chairman and ceo having stepped out of that role, feeling questions from analyst and customers, the company announcing 24 new cloud services at an event at coming headquarters in san francisco. they also say that new products are designed to move all the data into the cloud. last week's earnings caused shares to fall by the most in two years, we will have updates throughout the afternoon on what they said there today. now, taylor swift takes on apple and wins. the biggest name in pop use it calling out the world's most valuable company on tumbler arguing for fair compensation for artists, producers, and songwriters. she was upset that apple was not going to pay musicians during the free trial of the reason extreme in-service but in less than 24 hours the apple senior vice president for internet and software had a change of heart and change of policy. he sent to twitter saying -- we hear you. but the debate about streaming music royalties is far from over. joining me now to discuss, keith , and jeff. guys, every time that we have a co

oracle says it was hurt by currency fluctuations and by customers moving to cloud-based computing. brendan: keep monetary policy loose enough long enough and suddenly, denmark central bank is the place. torsten: challenged me to spell that right without checking -- let's talk about the other periphery the northern periphery dealing with its own capital flight into sweden, denmark. how do you handle that? torsten: when your neighbors to the south have had these problems, money has been trying to go elsewhere. one huge beneficiary has been the nordic countries. those smaller economies have been benefiting by stock prices going up. it's become somewhat of a curse. if too much money comes in, it becomes a challenge for central banks. brendan: having trouble holding onto that -- they insist they can do it. torsten: that's the big difference between norway and sweden and denmark. denmark has the exchange rate -- if you have such an inflow come a lot of upward pressure on your exchange rate. vonnie: record lows may ease policy further. torsten: absolutely. that's why we've had issues with

oracle is falling in extruded -- an extended trading. the fiscal fourth-quarter revenue fell. hurt by her see fluctuations and sagging sales of new products. the company declared a cash dividend of $.15 a share. up next, destination new zealand, jet star. jetor: juststar has an -- tor has announced plans extend into new zealand. jeb: they are making an attempt to crack new zealand's regional domestic market. they already fly between the main cities in new zealand. they have announced a plan to fly smaller planes, 50-seaters between 15 of the smaller cities. the ceo held a press conference a short time in new zealand. he said jetstar is going to bring competition to monopoly domestic routes around the country. the big winner here is probably going to be the consumer. anchor: the key question is the big enoughew zealand' to support so much competition? paul: that is the big question. unless you are from this part of the world, you probably have not heard of it and the population is quite small as well. .amilton has 150,000 people you can drive to auckland airport in a little ove

that was down from the record of $3.4 million to dine with the oracle of all how. the lunch auctions have raised $18 million for charity. the only topic that is off-limits is his future investments. interviewedere who warren buffett several times. betty: he keeps those predictions close to his chest. some of the past lunch experiences? betty: it's cool to see who has paid the money to sit down with him. $250,000, he paid got off cheap. bill ackman that was one of the anonymous bidders who want a lunch. pimm: this takes place online? betty: we have some video of the bidding going on right now. there are less than a dozen people who have been so far. i think it's up to $525,000 now. the opening bid was for $25,000. you can get a job out of this. bid two years in a row. now of course he is one of the two cios in her chair have to wait. -- berkshire hathaway. pimm: do we get any information about what they do speak about? betty: we don't get a lot of information. buffett and the better -- winning bidder, they do an interview together before hand. this is just down the

oracle is going all in on the cloud. two dozen new platform and infrastructure services. the chairman says clients can move all of their applications out of the data center and into the oracle cloud. his sites are set on a rival. >> our primary competitor in infrastructure as a service is amazon.com. they are not only a bookstore anymore. our primary competitor in this space used to be ibm. now amazon.com. of our old competitors, the only one we still see is microsoft. olivia: they are not just a bookstore anymore. he was not always this enthusiastic about the cloud. he had told people that cloud was a fad. four-game suspension for the scandal or the new england quarterback will be making his case in front of the commissioner, roger goodell. those are your top headlines at this hour. matt: what do you think? what is your take on the patriots? they constantly get caught cheating and are they just always cheating? it is like they are always cheating but still allowed to compete in the nfl because they are such a big draw. but they are continually cheating. olivia: he said h

others would say oracle is playing catch-up in the cloud. major catch-up. larry is the right guy to be telling us where the cloud is going. >> you're pulling up way too many quotes from my past. say is i think a bunch of vendors have built up established business in the enterprise. it happens in every industry and every kind of technology environment in the past. the cloud is disruptive in the economic rents and the way you deliver value to customers. particularly hard to deliver the cloud. i think most of the technology vendors will be able to get to the cloud and do that successfully. it will now be the new opportunity and the new competitive market will be, what you do on top of the computing in the cloud? commodity infrastructure is not very interesting. what is interesting is what you are doing to deliver more value to customers. i think this is a fairly new market that has yet to really play out. scarlet: that was the vox ceo aaron levie speaking with bloomberg west anchor emily chang. we have more coming up. ford sees a future with self driving cars

the biggest disappointment is oracle. toy try to migrate customers the cloud and see some speed bumps. shares down 5%. they are the worst performer in the s&p 500. part of this had to do with the migration of customers to the cloud and how it recognizes the revenue. we have two of the revenue streams. software as ae service revenue. a cloud-based revenue. these are software licenses. this is license revenue recognized as one charge when the client buys a license. this is a new cloud-based revenue that is more of a prescription -- subscription model you get it monthly or model.rly - you get it monthly or quarterly. migration andbig a bigger drop in the software license revenue than anticipated. i spoke with an analyst at bloomberg intelligence and that is where you can find this chart on your bloomberg terminal. one of the issues is perhaps the company did not manage expectations as it navigates this shift run the license-based revenue to the subscription model which eventually should bear more fruit for the company. they

apple and oracle are leading this charge. when companies come to issue new securities, new debt securities, you used to have firms like blackrock and pimco taking these deals to source the rest of the deals to other investments -- to other investors. that increasingly now is going to apple and oracle because they need somewhere to put their cash that will get them yield. underwriters love it because they have a buy and hold buyer. tom: in the next 90 days, they will develop almost $11 billion they do not know what to do with. right? mary: exactly. tom: $11 billion in 90 days. brendan: i was amazed at how this was restructuring the profits. banks are moving closer to reno. mary: you go buy and you do your roadshow andromeda interests, and say this is the best company ever and you should invest in it. that used to be new york centric and now it has started to incorporate reno. vonnie: where is the next big underwriting opportunities? mary: that is a great question. i am not sure i know the next opportunity for them, but the opp

he gets to pick the oracle of omaha's brain over lunch in new york. stocks slump for a third day, as analysts speculate whether the country will retain the right to the 2026 world cup. swiss authorities are investigating whether the bidding process for the 2018 and the 2022 world cups were corrup. t. qatar spending billions of dollars in infrastructure. susan: greece faces a week of urgent diplomacy to avoid a default. talks resumes and brussel after prime minister tsipras faced a united front demand and structural reforms. we have been following this and greece is high on the g-7 agenda. >> the cat and mouse game continues. the world leaders putting pressure on both sides, saying we have reached a deal. so that we can avoid the bigger risk of wider economic reverberation. of course, the summit, which was hosted by angela merkel, she also mentioned the opinion in the room was unanimous. a whole lot of work needs to be done him a and we are not quite there yet. this is days after alexis tsipras spoke to lawmakers in parliament talking about this huge b

oracle cofounder larry ellison sense -- that he wants to return 10 is to prominence in the united states and promise to do just that. the open1 billion for and the tennis guard worthy event where it is played. he ascends invested another $100 million in the southern california facility. more than we -- more than attend this year's open. a number that rivals the draw of wimbledon 10 in london. next up, the co-ceo mark hurd are plotting an all new american tennis tour. those are the top stories at this hour. betty: that is interesting. power houses. americas cup, and america's tennis cup. showtime not going to be outdone by anything, not even tennis. thewill take on hbo in likes of amazon prime and the likes of. selling a standalone subscription that begins in july. betty: the service will cost $10.99 per month. with us to talk about this is chairman cshowtime -- chairman and ceo. -- matt blanc. how did you come up with a price point? >>>> we started out looking at the current business model, when you adjust for the business models and packages, that is about what businesses were paying on

andissed analyst estimates, oracle was down lower than anticipated. relateddue to expenses to migrating customers to the cloud and also sort of a moving around revenue as some of its customers moved to the cloud. those shares are getting a hit -- getting hit hard today. also shares of rite aid, the company also looks to be cutting its fiscal 2015 forecast. it'snheim is saying prescription weakness may be partly to blame and that may continue, guys. pimm: thanks very much, julie hyman. nellis to go look at some of the top stories crossing our terminal right now. president obama's trade agreement is getting its second chance at a house that lawmakers are expected to vote on the proposal. the measure is attached to an unrelated bill. democrats blocked the trade legislation last week. company isbuffett's increasing its insurers to 2.5%. this comes after the catch maker's merger with kraft foods. investors could put stake in heinz for just one sense to share -- one cent a share. burger that added supersize to the american vocabulary is slimming down. a dec