And how it works when the media bistro chief executive joins us. Biotech, how the nylon investeutical ceo will 700 million in his biotech firm. All of more and next hour. First, lets go to su keenan for headlines in the newsroom. Center stage with google reporting fourthquarter profits that fell short of estimates. I drop inies advertising profits and profit excluding certain items was 12 and one cent a share, ms. Lane missing analysts projections. Meanwhile, amazon reported profits that trailed estimates. They saw a surge in costs to ship gifts over the holidays. Shipping costs accounted for 4. 7 of total sales compared. Ith 4. 5 a year earlier zynga will cut 15 of its staff and by popular mobile developer. They reported a narrower quarterly loss. Ceo, lloyd sachs blankfein, got an 11 larger stock bonus for his work last year. He received more than 80 8000 restricted shares of the january 28 valued at 14. 7 million. Thank you very much. Now some breaking news surrounding microsofts search for a new chief executive. I want to bring in our senior west coast correspondent, jon erlichman. This has to do with a Senior Executive at microsoft. This is the biggest question around microsoft who will be the next ceo . Bloomberg news has learned the board is prepared to make him the next chief executive. Withhas been a long search the microsoft board of directors looking at inside and outside candidates. Person thinking a lot about the future of enterprise and has plenty of smarts in terms of where the country needs to for the Company Needs to go. But another important part of the story is the possibility of bill gates stepping aside as the chairman of microsoft bear with me so i can explain what that would mean. The leadstanding is independent director who has been helping to lead the search for the next chief executive could step into the role of an executive chairman. A lot of people have looked into the possibilities of microsoft ceo and looked at bigname candidates outside. There could be a question of the tablehe bring to in terms of being able to run such a big company . The possibility of having John Thompson as this executive may satisfy some who have concerns about that very issue. Thats not to suggest bill gates histepping back in terms of thoughts or influences of where it might go. Inbill gates is remaining that chairman position, what does that mean for the ceo . Can the new ceo do it they need to do . Thats the latest on what we are learning. A little more if you can on mentioned Cloud Computing and enterprise computing. He came from Sun Microsystem and has been at microsoft since 1992. Does his potential appointment the power or influence of different roles will change as you mentioned perhaps a change of chairmanship . I think it is important to remind people we did see Steve Ballmer who is stepping down as ceo. Steve ballmer laid out a plan for the company for the coming year, a plan that reorganized the structure as puts emphasis on both devices and services. We have seen them making their own hardware be on the xbox, pushing into the surface tablet. Strategy has been successful having both hardware and software. They have about 7. 4 million of those xbox consoles sold over the Holiday Shopping season. Xbox isor example sponsoring the media day event at the sheraton times square for the nfl super bowl. Thats one part of the iker soft strategy. Think about the big enterprise customers microsoft has. Think about their interest in having more flexibility. Its a much more convenient way of using technology to help your business. Microsoft is aware of that and has two cater to those customers the same way has to cater to the consumer whos interested in buying all sorts of iphones at microsoft wants to stay in those games. Bring you a headline having to do with yahoo . This accessing in a different way, saying they have discovered Malicious Software linked to yahoo accounts. The process by which microsoft is selecting a new chief executive, is there a clock that is taking . There is obviously an interest in getting this resolved in a timely manner. Thiss an attempt to have by next year and that did not happen. Stem thats continue to put pressure on this issue getting resolved, but as we have gone to it all, this list of inside and outside candidates, there have been a lot of people to weigh in on and find out if they would be available for the job. I go back with what we have reported on terms of the structure in having a ceo and executive chairman having to think through what would satisfy everyone. Jon erlichman, thank you very much. Talking about potential changes at the top of microsoft on to potential changes in washington security agency. I want to bring in our white house correspondent, Phil Mattingly. Nsa . Is going on with the secretary defense chuck hagel announced Michael Rogers, a vice admiral in the navy who is running the navys intelligence and Cyber Security operations right now is the next rector of the National Security agency. He will replace Keith Alexander who announced his retirement last year. We know about Michael Rogers right now, running cyber , heand for the u. S. Navy has been slated for this while and wasr a an advisor to the joint chiefs of staff. He has a background in cryptography. Thisel rogers was put on pathway a long time ago, but chuck hagel Just Announced a couple of minutes ago that he will in fact be the next director of the nsa. Theoes this mean any of policies will change . You mentioned he was being groomed for the position or would retire to take this position as the head of the nsa. Does this mean while they think all of the problems with the nsa will leave with the outgoing chief. . The outgoing chief . After these reviews panels that came after the edwards vote lead, there were allegations that the head of the nsa should not be a military officer. President obama not taking that recommendation here. The head of the nsa should not have access to cyber actions out of the pentagon. In only is he going to stay uniform, but you will maintain command of u. S. Cyber cop. The president is trying to reach out to people with the changes hes making and hes not taking recommendations were comes to how to run the nsa. Facingblems the nsa is from congress is not going to go away with Michael Rogers. You make an interesting point. You have someone with such a ella terry background running an agency whose remit has come into question because of whose information and where that information is coming from domestic versus international. Is that anything anyone has raised his military background and the fact he will be both a military expert and the mystics buying as for domestic spying expert. Raised the issue with Michael Rogers, but they have raised it riley on capitol hill and these review panels will stop what we know is the president is comfortable with the way its set up. He is comfortable with the background he brings to the table and the tradition that has been set. You are obviously not seeing a change right now and its going to stay for the time being. Lex Phil Mattingly reporting on vice admiral Michael Rogers heading to the nsa agency. I want to bring in Olivia Sterns in our newsroom to give us more of a date. The company responding to a report that Malicious Software had been accessed . There has been a unauthorized access they say security attacks are becoming a more regular occurrence and recently identified a coordinated effort gain unauthorized experts unauthorized access to mail accounts and says they prompted users to reset passwords on accounts that were impacted. They are resetting passwords, working with federal Law Enforcement to find the perpetrators responsible for this attack. They say they have implemented there arek bigger concerns run hackers targeting infrastructures and software and the one being the attack on target Software Systems with nearly 100 million accounts compromise there. Lex thank you very much. We will follow this story with yahoo accounts accessed and unauthorized access for Malicious Software. This is taking stock on bloomberg. 3d printing it has been one of the most talked about technologies of 2013. Many companies saw a big stock gains as a result. Guest is investing in 3 d printing technologies. Hes the leader of the 3d Printing Technology fund. Printing technology describe for someone who just landed and didnt listen to any of the hype or headlines how do you describe it to people . Print veryity to easily any object you want. Computer,ture on a use some kind of Digital Software that translates it into a 3d model . Correct. Essentially cad software to make the Design Program it into the printer. The renter reacts and creates the object. Depending on the size and material, it could take anywhere from half an hour to an hour to several days. Obviously, one can make amazing things. Making amazing things. Whats the marketplace right now printingesults of 3d technology . It runs an incredible gamut. You have fighter jets where the are made from 3d canopy material. Interesting it was Just Announced the other day that the euro jet, which is a joint fighter plane henceforth, the extra canopies they need will be made, have been certified for 3 d printing. General electric, a lot of people dont realize how busy they are. They are probably more involved than any other company in the world. Within four years, they indicated 40 of all the parts of the jet engines they make will be 3d printed. On a lower level, Custom Jewelry is one of the great growth areas. Peopleles consumers and who have had jobs to be jewelry designers to get into the business overnight. Now you are in the business of a mutual fund. Bistro into adia Fund Managing money . I havent left media bistro. We have the largest string of worldwide 3d printing trade shows. Its the largest trade show in the world. With the best trade show to go to if you want to learn about 3d printing . Media bistro at the jacob between 10000ct and 20,000 people there. Expect 50 to 70 exhibitors about 20,000 people. On the lower end of the spectrum, saying this could be another business to get into . It comes with a lot of risks because people will be risking their money. Ge and put into the fund . Be80 of the fund money will placed longterm, no hedging, no nothing. Play 3d and peer companies. Additional companies who are heavily invested in using 3d technology in order to grow product lines. Thank you for enlightening us on the world of 3d printing. The chairman and chief executive of media bistro. Coming up, more on changes in the executive suite of microsoft. You can call it a block esther of a biotechnology deal it all has to do with treatments targeting rna or ribonucleic acid. Upa result, alnylam has shot 20 in the past month. Running ise is more to talk about this is the president of out my lump rmaceuticals him a president of alan meckler president of alnylam pharmaceuticals. Tell us what this is and why this is important . This is the forgotten brother of dna. When you think about how important rna is in biology, and dna makes rna makes no team. Is ithis company does targets rna with rna interference. Essentially that shuts down the action of bad proteins that cause disease. This has a huge potential to be a new class of drugs the future. She was perfect. Can, peoplef you you. Been congratulating other than you are a very nice person. Right before jpmorgan announced a transformational deal, genzyme acquired 10 of our companies our company which takes us to the next level. What that allows us to do is translate a series of products to now become commercial in this regional deal. It alleviates the need to tap the equity markets and prosecuted rod pipeline of therapeutics. This is something we articulated clearly we are going after the genetic cause of the disease. Diseases cause often by too much or too little protein. We are targeting genes with a genetic cause of the disease. In phase one, if we knock down the disease causing gene, we have a high probability of clinical but if it. More time withnd us in the future . I would love to. From alnylam pharmaceuticals, inc. You very much. This is taking stock on bloomberg. This is taking stock on bloomberg. Im pimm fox. Microsoft is preparing to make the board is also discussing replacing bill gates as chairman. Gates addressed his role at microsoft last week when he sat down with bloombergs betty liu. I fulltime work will be the foundation for the rest of my life. My wife and i are enjoying that. I get to do it in depth, so im not going to change that. I will help out parttime. Westts bring in bloomberg correspondent, jon and cory johnson, bloomberg editorat large will stop he joins us via telephone here in new york. What is the potential that is the next chief executive of microsoft what does it mean for the company . I think it gives us an idea of the what the future direction of microsoft would be like. Hes been running all the cloud initiatives. The q what has happened to microsoft over the course of the last 10 years. Suddenly the whole world they are built around, these desktop computing things, microsoft office, their whole platform is upon the strength of windows and the pc and that is going away. Mobile phonesh and tablets and competing on the cloud. He as one division of microsoft focused on bringing Enterprise Business on to a microsoft run cloud and that a vision for the from windows,e office and xbox and has been very successful for microsoft in recent years. Seem as though Technology Goes through a phase in which power moves back and individuals, the the desktop computer and the ipad, what you holding your hand and whatever is in that room somewhere miles away . The big iron that either memorizes everything moore takes pictures of everything or records everything so you have this back and forth Client Server relationship that seems to be moving more into the world of enterprise. Down, you have a world that is mobile. Were moving around a lot. We are not necessarily tied to our desk anymore. Wed cory was talking about, you seen this Growth Business for not just microsoft but for google, amazon and in a world of applications, Companies Like oracle and salesforce will stop it is a big business shift. To build on what cory was talking about, you have someone running the growth is this for microsoft and as far as the internal candidates go, it is someone who understands where microsoft is coming from and that they are still getting a huge amount of cash from those legacy businesses trying to do the proper balance of respecting that business and generating as much money from it as possible. At the same time they are going full speed ahead where the most growth is going to be. Can you speak to the notion of ratcheting up not only memory but Computing Power at the handheld device level and cloud level . Through times square right now holding an iphone. It has more Computing Power than the supercomputer did in 1984. The whole world of what can happen and where it can happen has changed for microsoft and outpaced the necessity to have all computer happening at the desktop will stop microsoft is really wrestling with this and it is worth noting microsoft is still in the shadow of the antitrust battles of early 2000 over the browser and the way they base the growth of their business on their monopoly around windows. This is a Company Still trying to find its way in a new computing world where the computer world innovated around it. In his position running the clouds, its one of the rare successes that microsoft. I wonder if we will see more definition around how to define the company. That he would be the next chief executive of microsoft, he would be inheriting a company with 94,000 employees and pays a dividend of three percent. This is not just a business unit, this is a multinational corporation. Thats an excellent point. Its not an easy job to step into. You were talking about a very complex business which gets to what we have reported that there is this potential idea that you would have an executive chairman , possibly via possibly John Thompson who has been the lead thattor stepping in to position and the possibility of bill gates stepping away from it, almost to send this message prepares to take this company to its next place, that the challenges of being a ceo on the National Global stage and the headaches that can come with it, may be somebody like John Thompson can help through that transition. This is a big, complicated company and thats why a lot of the candidates are from Big International companies. When i look at the market cap of microsoft, talking about 300 billion. About 415 billion. These are market behemoths. Any chance they can split off the is this is that are not key to their future success . Lex that has been one of the key questions. Synergies that they have, lets say between xbox, xbox live and microsoft search. Those be contractually guaranteed and what i achieve separate valuations . Thats something that will be a question in the early days of the ceo. Microsoft has just gone through a big reorganization. Shes got to imagine going to sign on with what the board has with the company will stop imagine a microsoft like person, someone who knows who the people are and knows who the winners and losers are up there. Thank you both, we appreciate it. Bloomberg actually spoke to him last month and heres what he had to say in an exclusive interview. The microsoft board is working on the process. Steve ballmer is the ceo and im actively engaged in running the enterprise engineering room. So you wont need him in a chief executive role question are ive said everything am going to say about it. Coming up, we will talk politics when we got to the gop retreat, next. Our chief washington respondent spoke an exclusive interview with ted cruz, urging republicans to stand their ground on the debt ceiling debate. Hes at the House Republican retreat in cambridge, maryland, where they are trying to come up with a debt ceiling strategy. He joins us with a member of the republican leadership, James Lankford of oklahoma. You look a little cold. It is a little chilly here in cambridge, maryland. We are lucky to be joined by congressman James Lankford will meetingse republicans here to talk about a range of vague issues, including not only the debt ceiling but immigration. Had released today the principles john boehner has shared with the group as a whole principles that could be a roadmap for a compromise with the senate and ultimately legislation signed by the president. The key thing here is legal status for undocumented americans, not a pathway to citizenship, but more than we have heard so far. This was a statement of principles the speaker put together personally and outline a set of ideas. Put a drafte was to proposal and say where are we at the house . A wide variety of expectations and timing. Its the first opportunity to put something on paper and say what are our principles. His responsibility is to listen to the conference and determine where we go from here. He kicked off the debate and said he supported these principles Going Forward and saw an opportunity for a deal with emma kratz, but it would not go forward in terms of a formal pathway for undocumented adults in the country right now. Thats a nonstarter with the conference . Im not going to say where it is because it still ongoing. The key thing is is where are we and what do we think about these is this commonre agreement that we should secure the borders. Tos fair for every country have secure borders and then who is coming in and coming out. The great on stern nation is the president continues to defer to defer the law and its making immigration harder because the thought is whatever we pass vomits the president is just going to ignore the law and use deferred action and ignore the parts that like, it makes it difficult to pass any new law went old saw when old laws are not enforced. What could we do with this resident . What are reasonable things and how would we do it . Couple of things. One is we have to take individual pieces and we feel its important for the American People to be on board. They are not going to be on board some giant bill. Keep moving to the next issue, thats a better way to do it. You know how tough the politics are. Less thaneen out for an hour and there have been potshots from the conservative side, saying it is going too far and other on the liberal side thing they dont go far enough. You have seen personally, do you see an opportunity for a compromise based on what you saw today . Is the great unknown. We are committed to doing it a piece at a time. In december 2012, the path the house passed reforming the visa program. The president throughout a veto threat and said they are not going to take it up. Not everything, he wants nothing to be done. Thats a problem. We are not going to do everything. Weve got to do it piece by piece so the American People are on board. So what we dont know if its going to work at all. If the president refuses to do it systematically, we dont have a partner. But me ask you about the debt ceiling. Have you had discussions about what is it republicans are going to be asking this resident in exchange for an increase in the debt ceiling . Lex we have not had that complete conversation. We talked a lot about Health Care Issues and job growth, we have a lot of topics we are dealing with. Weve been here 24 hours, so we have some time to go. There is a report that the leadership, i was a throne in the towel, but basically acknowledging they are not going to be able because democrats have leverage and president has leverage. No one wants the country to default. We also believe the debt ceiling is a great time to talk about that. Theres overspending this year and there doesnt seem to be a time the president finds it convenient to talk about how we get the debt under control. Everyone knows the more we borrow from sovereign debt, the more we are taking those dollars out of the market, it could be invested in business and grow the economy in other ways. Weve got to get that back out in the private market. Its very important for Economic Activity and for our country not to keep adding more and more debt. Lex how important is it to avoid that kind of crisis . We are seeing some traction in the economy right now. Its not exactly what the economy could use. The goal is not to have a showdown with the president , but we have to resolve this issue. Done and those are reasonable conversations we should have. We believe the president should have them with us as well. Why are we getting closer to balance . How did that happen . Negotiations in 2011. For the president to say i dont want to negotiate on debt ceiling and then say then highlight how much better its going because of those negotiations is a little odd. Lets sit down and talk about it and get a chance to work it out. Commerce and James Lankford, braving the cold here on the eastern shore. Hes going to head back inside. Hey get shoes here thank you very much. Peter cook, our chief washington correspondent joining us from cambridge, maryland. Talking about Health Hundreds of nfl players scoffed at the notion of sitting out with a concussion. Is that a noble approach . Is it smart or is it dumb . We will get answers from the president of the nfl physicians society, next. According to a recent study and that by espn, 85 of the 300 20 players polled said they would play in the super bowl with a concussion. Bedardee titans layer pollard was quoted as saying we are entertainers guys want to go out there, they dont want to let themselves down, they dont want to let their teammates down, they want to go out there and play. How can this affect things later on down the line . Dr. Ing me to tell us is matt matava. Hes the current president of the nfl physicians society. Thank you so much for being here and thanks for your patience. I know you are getting ready for the big games between the Denver Broncos and seattle seahawks. Tell us about something called toolfl sideline assessment the baseline test. What is this test question are the baseline test is a narrow psychological test that measures memory, process, speed and balance to tell how a player is an be used that same tool after the sideline it takes six or eight minutes to assess and we can determine whether hes had eight concussion. How long ago was this introduced in the league . We now have on the sidelines, so there are timers builtin and graphic representation. This coming season, the nfl will use the Electronic Medical records throughout their problems throughout their life, so the we will know their allergies and other medical problems. Will have realtime access to their medical records of stop who created the actual questionnaire . I noticed one of the big things that pops out as it says do you have a history of migraines or headaches . The question you refer to has been compiled by several centers and validated in a scientific fashion for football. You have a background as an orthopedic surgeon. Many injuries, adult, young people and children. What have you seen that has changed over the kinds of injuries people play football received . More interestuch now in concussions. Our diagnostic methods are much better. Five or six years ago, we would not have diagnosed a concussion like we do today. Have seen change in ligament injuries and cartilage injuries. The entries are unfortunately getting younger and younger. Football but all sports as well. Theres a high premium put on support put on sports in society. Those injuriesof with young players. That level of competition is something you think can be regulated or should be modified . As a Sports Medicine physician, i dont like to see anybody too much of any one activity. Moderation is probably the key no matter what you do. What i was growing up, youd play football in the winter, you had certain muscle groups rest and you made different friends and you wouldnt see these overuse injuries that lead to fatigue and ligament tears that need surgery. Could you say if it hurts, dont do it for a little while . You do but a lot of parents, if you push your children along that the direction that something we try to combat as a Sports Medicine physician. As someone whos gotten to know the players on the team, do you look at the game and say i know that guy has this problem in this one has been hurt over here do you come to it as a physician as much as a fan . I do. Some of the players will have played on our team because of the way trades go and we will know various histories based on what the media reports. I will watch it as a fan. Do you have an idea of who you would like to see when question are being from the east, i would like being from the nfc west, i would like to see the seahawks, but i am voting for the broncos. Thank you. It 56 minutes past the hour and a means its time to go on the markets. The stock market rallied today, the Dow Jones Industrial average added. 7 . The nasdaq higher i almost 2 . Live from pier three in san francisco, welcome to the late edition of bloomberg west, where we cover the media and Technology Companies that are reshaping our world. Im emily chang. Lets get straight to the lead microsofts long search for a successor to Steve Ballmer is about to come to an end. The board is preparing to name ceo. Nadella as he has been running microsofts enterprise and cloud business
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