Now, we do believe that operation it did take ops did take out dangerous members of al qaeda. But we did not know, tragically that al qaeda was hiding warren and giovanni in the same compound. Cory the president has ordered a review to find out what happened. It could be a recordbreaking day for the nasdaq. The tech heavy index has climbed to the highest level in 15 years during trading, surpassing its. Com era high. You home sales tumbled in march. They fell 11. 4 at an annualized rate of 181,000. Auto month low. The news and job front continues to be encouraging. They rose five 1000 last week to fashion the seventh straight week of payroll cuts have been below 300,000 indicating a rebound. A record 2. 5 billion fine to settle allegations of rigging interest rates. The bank has been ordered to fire seven employees. One of them will plead guilty to a fraud charge. General motors said sales dropped 5 in the First Quarter but profits grew 145 million. Sales for suvs in america remain strong but gmc was hurt by currency. Shares of gm are down today. At t is selling debt to finance 48. 5 billion purchase on directv, according to a person familiar with the deal. Nearly all parts of the sale will be redeemed for 100 face value should the deal fall through. They expect to win government clearance for the seal this quarter. It does not appear to be too rosy, comcast proposed a 45 billion takeover of Time Warner Cable and the deal is in limbo. I say they are leaning against the recommendation of it following the lead of the justice apartment. It would virtually guarantee that this merger is not going to happen. Senator al franken a democrat from minnesota, argues that the bigger Cable Company does not make for a better Cable Company. Figure is not that there. If you have one Company Controlling 57 of the Broadband Internet in the country, that is competitive and that means higher prices, less choice for consumers and if it is possible, worse service. Cory is there anything comcast can do to save the deal or has the train left the station . Chief correspondent peter cook joins us as well as andrew short smith, lecture at georgetown law. Peter, what is the latest and coming out of the sea of d. C. . we reported back that the antitrust team had reservations about this deal and that they were prepared to recommend that the Justice Department challenge it. The double ramey for comcast came in meetings yesterday at the fcc. According to people familiar, they learned at that time the company did, the company lawyers, that the fcc would also recommend they go to a hearing on this deal. R gidley, a bigger blow to the challenge posed by the Justice Department because that hearing process can take months, if not years. Simply the delay could make this put this deal into jeopardy for comcast. It gives them the option of challenging the fcc and the doj but we are not at that point. There is still an opportunity for negotiation. Cory schwarzman, let me ask you. It seems among other things this is a big srew up for people act comcast before they went through the trouble of making it happen. Let me say that historically it has been a mistake to underestimate comcast and they may still be able to figure out a way to pull this out. But, certainly the consensus at the time this deal was announced was that it was going to go through and comcast used its playbook that worked very well for Nbc Universal transaction. But they were dealing with a very aggressive fcc chairman and fax can sometimes and facts can sometimes get in the way. This was a very aggressive move and i think the people at comcast underestimated the kind of resistance they were going to get. Cory peter cook, in terms of process here, it seems fairly unusual that we would have an understanding of the way the departments are leaning after the deal has been proposed for a while. We saw recently where a staff report came out from the doj about google and it short of stowed it sort of showed staff concern about practices by google. Is this the way for for the stock to sort of say, hey, we are not all for this deal . Or is this coming from the very top . Peter it is important to remember that the stock is not necessarily the leadership of either institution. The staff makes recommendations all the time and they are not always accepted. There is some distinction between the people making these recommendations and ultimate deciders. Both the doj and thats fcc. It is pretty clear that there is a pretty strong consensus among that group at doj and fcc, there are problems with the deal. The question remains at comcast can do anything to relay those concerns. That is an open question. Whatever it would be, it would be painful to comcast. They like the deal on the table and they feel very strongly that it is not only in the Public Interest that it is competitive or at least not anticompetitive. They are going to stick with their guns, but at the end of the day, the decision has to be made if they are willing to offer concessions. Cory i talked to people working with comcast within the company and they are working very hard on integration plans. They had some expense that goes beyond the bankers and lawyers. I want to go back to something you said about facts getting in the way. The prior deals that comcast has done, yes, they have gone through but has the behavior of comcast in those deals injured their likelihood of getting this deal through . One of the issues that has arisen during the first consideration of the deal was the difficulty and unenforceability of the conditions to which comcast agreed to as part of the nbc u d eal. Comcast took advantage of what some people, including bloomberg, would consider to be loopholes. It seems to be rather recalcitrant with complying to those conditions. The Justice Department does not like these behavioral conditions to begin with that. It helps strengthen the notion that the best thing to do is to kill the deal completely. Cory specifically, which behavioral condition has comcast asked to it hereto and did not do so . And you to keep it close to home, this channel was the subject of a lot of fighting because bloomberg, i believe, correct me, i believe the deal required that the Bloomberg News channel the neighborhooded, placed next to cnbc, fox is this channel, and other news channels. Comcast tried to construe the agreement that the way and it took a lot of litigation and fighting at the fcc to straighten that out. Peter that was one of several issues that came up as to whether comcast was honoring the 150 conditions attached to the nbcuniversal. And there were questions raised about whether the company had exerted a greater influence than their passive role was allowed. Comcast has challenge that from the start and maintained that it has honored the conditions of the nbcuniversal deal. That is a metric that that should make the case why they should be allowed to move forward. That has been an area of debate during the course of this merger conversation. Cory i should point out, we did not ask comcast specifically but they knowledge that we had a series of meetings with the department of justice and fcc. Peter cook chief ashington correspondence and andrew j schwarzman, thank you very much. Facebook is focusing on mobile and how it is paying off big time. The secret to the success could surprise you. Is microsoft turning the big distance around . My partner emily changs exclusive interview and with Richard Branson and sheryl sandberg. Finding a balance between a professional and personal life. It is at a 30 eastern p. M. On friday night a 30 eastern p. M. On friday. Cory this is bloomberg west. We focus on white everything going on in microsoft a check of top headlines. An emergency meeting summit on the smuggling of migrants. More than 700 migrants drowned when their ship capsized. A draft proposal that they are planning to increase spending on border control. They will seek and identify ships before they are used. Southwest airlines fine height in the First Quarter, revenue up 6 and profit nearly tripled. Strong passenger demands and smaller fuel costs. Here is ceo no one knows where oil prices will take from here. There is certainly a lot of effort underway to cut back on supply cut back on drilling and Push Oil Prices up, so we will need to be sure that we protect against that. Cory southwest also launched a number of new reps of this court, including service to the caribbean and central america. Shares of mobile iron hitting their lowest level since their june ipo. They produce they predict sales to be lower and a number of big deals did not close. Chief Financial Officer leaving including Data Protection tools. Just amazing growth and momentum of mobile, in particular was notable. 73 of facebooks ad revenue came from mobile. Compared to 59 one year earlier and 0 when the company went public. The mobile user base jumped 31 last year, reaching 70 798 earlier people. How can facebook make more money . I am joined from new york why are chevy and mcdonalds spending money on facebook . That is where the users are. The internet has completely changed. A few short years ago, the internet experience for most of us started with a browser and search. Today it starts with a smartphone and an app. The top quarter of those apps are facebook apps. Cory i am really intrigued. There have been so many numbers out of the reports. Why do we run through some of the things. I want to know how you react as an advertiser. One of the things that was a trip was that their user growth accelerated in other words they added more users and at a faster rate in the First Quarter than they did in the Fourth Quarter in the u. S. Is facebook getting more powerful in the United States . They are getting more powerful all the time because of their cap and presence on mobile devices. 87 of mobile device usage is in cap and not the mobile web. Zuckerberg was famous for saying that he bets on the web he quickly corrected course and made a successful app and picked up a couple of other ones in the form of instagram and added messenger to that. They have a powerful array of tools to tap that audience which is enormous. Cory i had forgotten about that and that reversal. What the mature thing for a young guy to do. Another number, and the most relevant to you, revenue per user. What it was doesnt really matter. I think it was 850 or something in the u. S. And 250 across the world, but the advertising revenue for each user in every country and in every category increased on the year over year basis. What is it that facebook has figured out some reports say the number of ads are down and that is efficacy to me. 1 how does that play for an advertiser on facebook where they say it will work better if they put something over your ads . They made a dramatic change in the way they approach advertisers. In 2012, they were the geo that the de facto for messages and set up messages and we will help connect to consumers. Then they said, no, youve got to pay for it and then became a mass media. Theyve had billions of preroll ads and they are leveraging that. Those little video ads and everyones feet are the life and blood of their advertising program. Video advertising is the life blood of the internet essentially. Cory and of television. Video seems to work and a lot of formats, but specifically, what is facebook doing with created that is so focused for the medium . What is working on facebook for advertising . A couple of things. They have the unique ability to target. Cookies for longer work and they have a little piece of code that for 20 years really determined how people tracked advertising usage and targeted over the internet. Now all of a sudden on mobile, they are absolute. They are obsolete. Facebook has that user data to target. They have units that come to life when you scroll in the feed and that has been a dramatic success for them. Cory are they more successful last question are they more successful than other people then twitter or aol or google that have a lot of internet advertising and use them for video advertising . What makes facebook work so much better . 1. 5 billion uses almost and 500 million of them that never go to the website. They have an enormously powerful app and a tremendous resource. Cory so it is really scale more than data . I think it is a combination. Scale first because that is the first advertisers would work on the second thing is that it. They are not even monetizing some of those assets we talked about one minute to go. The data will come to life after product evolve and it will become more powerful for them. Cory thank you. Interesting stuff. Pleasure being here. Cory microsofts you microsofts new leadership could help them reboot the company in other ways. What investors are looking for and what the business of and what the business is looking for, next. Cory this is bloomberg west and im cory johnson. A big turnover plan and is it working . We might note that if when they reallys First Quarter earnings. Ceo of microsoft, when will we see a change . Wow that turnaround plan that turnaround plan is also or will be shipped turn that fast . The change is happening and you can feel it in the valley. If you talk to all Silicon Valley executives, they say it is changing today. It wont change in the numbers tonight or probably next quarter. It will take a couple of quarters for his efforts to really, to fruition. We believe that nadella is doing the right thing. The new cfo is doing a phenomenal job on managing expenses and doing the right thing. They have a new mantra your business is it to grow and create profits and if you cant do it, you are out. They are clear that there are a lot of things they will cut. Cory you can get a sense that things were starting to change. Easy executives moving around and a sense of new products having a different kind of focus. Sometimes you see the new energy up there. Energy i sat down with the 20 year executive that has been in seattle and he indicated to me and he worked at microsoft early on he said it is a cool place to work again. When you go to the company there is more of a spring of step and enterprise guys inside microsoft are fired up because nadella came from the enterprise world. They have yet to prove in consumer and that is a big area. Cory i am in a good mood today lets talk about nice stuff. Where are we going to see movement in the Enterprise Business . I think youre seeing Good Movement in their infrastructure basis with their server and like last year with xp and a refresh and this year, a refresh on their windows server. Really the only material competitor against amazon. Cory i think thats an interesting business. That is the competitor and we will get aws numbers tonight probably from amazon which will be interesting. Today have a differentiation from what is being offered at amazon . Aws is way ahead. Microsoft is behind but they are catching up. I think where comes into difference is that azure is a company a collection of what a Different Solutions for microsoft. Where microsoft developed where microsoft develops, there is an and for structured world they are good at but it is where the applications will matter and i think that will be a big differentiator against amazon. You can go to one versus having to buy the harder apps from amazon and trusted on their infrastructure. Again, aws is a home solution. Cory at some point, i wonder if complexity ends up being their advantage. Thank you for coming. We appreciate it. Tomorrow, apple watch it the mail. It may show up at your very door if you ordered one. We will talk about what the numbers mean around big products from apple from apple went bloomberg west continues continues. Cory this is bloomberg west where we focus on innovation and the technology in business. The u. S. Drone strike accidentally killing an american and italian held hostage in january. President obama says he takes focus possibility for the operation. President obama it was my directive that this be declassified and is closed publicly. I did so because weinstein and because the families deserve to know the truth. And i did so because even if certain aspects of our National Security efforts have to remain secret in order to succeed, the United States is a democracy committed to openness in good times and in bad. Cory two double americans linked to the terrorist group were also killed. Senate leaders are paring legislation that would extend the Government Authority to collect telephone data. It would continue the Surveillance Authority through the end of 2020, otherwise, set to expire june 1. Meanwhile, the house has passed a second Cyber Security built urging companies to share information with the government. The bill received bipartisan support and gets companies protection from lawsuit. It will be sent to the senate. Parents of Michael Brown suing ferguson, missouri. Michael brown is the unarmed like teenager good of a shot by a police officer, sparking national debate. Both federal and local authorities declined to prosecute the police officer. Spain rejected u. S. Request to extradite a firmer jpmorgan banker in his london. Spanish courts turned down the request because martin is not a spanish citizen and the events occurred in london. Tomorrow is the day for apple fan boys and the rest of us. Without a watch could arrive as tomorrow for some consumers who ordered them off the bat. Delivery times have been moved and some have been moved up since preorder started. Customers who bought the preordered watch would not ship until june. Tim higgins here to discuss this. Tim, let me start with you. These changes in the order dates , i bought my wife one of the new macbooks and i ordered it the very first they and they said it would not come until may, but this morning i got an email saying it was on the way. Is this a promise to deliver or assign or assign that this is not what we thought . Tim during the big preorder time it arrives earlier than expected sometimes and customers are starting to receive email saying it is coming earlier than you thought and that could suggest they will get it as early as friday. Cory let me ask you, when you look at what is going on with the apple watch, is there a sense that the demand is fantastic . Is there a sense that it is wait and see . I think it is more about functional product than fashion accessory. This is the first time apple is using the buildtoorder approach and they put that in the delivery date. It looks like they are doing better than what they expected. Cory why do you think that is . Shahid i think the negative view of this is the demand is lower, but i think demand is still consistent with what the forecast work. I think it is more about supply chain efficiencies been over delivering on where the promise is and delighting the consumer. Cory is there a sense of where the command the demand is coming from . We talk about apple fan boys and ordering anything but thinking of the analysis over apple he links it to a phone. He says it is a phone accessory and he is trying to capitalize on the iphone users who want his iphone accessory. Tim you have to have the iphone to use it, so it will drive that. Where are we what we are seeing when it was being able to preview in stores, we got mixed response. A lot of stores, nobody was there. I have done inspections on stores and i have seen people lined up, so i have seen people in hong kong i have heard people in new york. It is a global product. In a way that iphone 6 was not ruled out in a global way, it will be in china on the first day. Whereas it was the six was delayed for various reasons. It is interesting that the watch will be in Boutique Stores for sale. You can walk in and buy one. Most stores tend to get a lot of global tauris, high and tauris. Cory i heard about the Department Store in london and paris. London, berlin, tokyo, and authorized resellers in china and japan. Some of these places are high and and they attract a lot of asian, particularly Chinese Tourists that are traveling. Cory what are the numbers you are seeing . Estimates as our earlier work all over the map. Tim it apple will not be clear on how well they will be doing with the watch. In some ways, they dont want to tip off where customer preferences are. The estimates are, in some cases, maybe 300,000 at the beginning or one million in opening weekend. Several million more in the first year. Cory what is your expectation in terms of numbers sold in this first period . Shahid i think by the end of the a, especially christmas season, about 20 million watches. Cory 20 million . What is that based on . Shahid a number of different forecast we have bred and triangular the. From an apple consumer point of view, in interesting product and a new category of available devices to a pretty big market. Once it is out and people are developing more functional applications, you will see a lot more usage. Cory tim, you alluded to the fact that apple will not tell us a lot about who is buying it. They dont write down any products in terms of any one product and how much they sell. It is except for very rare exceptions. They dont say mac sales were 18 of mac sales were to europe or anything like that. Do you think they will give us numbers after the first weekend of sales or first week . The iphone, the first time out they did not tell us right away. They waited until one million before they got to any numbers. Tim the signaling is there wont be any numbers on monday. It is hard to say, but monday will also be there earnings. I expect some color during earnings. Maybe them saying i havent got one yet. Cory mi supposed to get one as a reporter covering the company . Tim you need to know what time it is. Cory there is a big clock under the counter or somebody yelling in my air. Richard is yelling at me right now, let tim higgins thank you very much. We appreciate it. Coming up, tesla, my favorite company, big plans to bring power to your home. Conversation with cheap facebook operating manager and the struggle between finding work finding balance between work life, and family. Cory this is bloomberg west haircut i am cory johnson. A battery expert on teslas grand plan. Radio history in norway. The country is turning off fm radio and we will tell you why. First, check of top headlines. Nope yet is trying to drum up money and theyre losing maps business. Their target is alibaba and amazon. Nokias seeking more than 3 million 3 billion after purchasing the app for more than 8 billion in 2008. Honda has designed their first ever jet plane. It does not look like a civic. It made it first flight from japan, landing in tokyo. Honda has put the jetss engines on top of the wings and they say it increases fuel efficiency by 15 percent while allowing more space in the cabin. Theyre waiting to get approval from the faa. Americans still love Dunkin Brands and dominoes thanks to expanded menus. Duncan cited the new masonic donuts. Croissant donuts. Dominoes introduced chicken bites covered in chicken toppings. Gross. Whatever. Shares of companies climbed. Donuts. Next week, tesla will make a push button beyond the car business when they unveiled batteries for homes and businesses. Big businesses have signed up like the likes of walmart. How much rely on the proposed giga factory to build the batteries . His Company Create technologies that wirelessly charge electric cars. I asked him about the cup about the potential for the giga factory is. What that factory can do is push down the price of the cell the battery so so low that it becomes a commodity. That is something we have not done yet and needs to be done. If he does that, it will go into homes cars and it will change the paradigm completely. Cory what is the brick the Business Model . Andy there are two dove. There are two. You can take a battery where it is not as functional as it ought to be for a car or truck and put it into great stores where it is used less frequently in less intensive ways. A battery may be good for six years, seven years, or eight years in a car, but for every year of use, it fades. After the eighth or 10th give it may have faded so much you need a new battery. Todays technology implies that that battery still has life left in it, but put it into cory so a fiveyearold tesla needs the whole battery to come out because i wouldnt say five years on a tesla but they are doing better than expected. Cory not like mercedes with engine doesnt have to come out for eight years. Thats too, but the engine may need to be replaced and the transmission rebuilt. The battery of any electrical vehicle today has a limited lifetime. You can extend the lifetime to Wireless Charging but you can also extend it by giving it a second life in which it has secured value. Cory so that is putting into the home . Putting it in the home service, and servers. Cory the power that comes from the grid, while we tend to think of it as having the cost at all hours of the day, the cost of production is much greater and the scarcity and cost of power during the day can actually be much higher . Andy the complex they all have different factors cross factors. Transmitting it is pretty expensive because of the maintenance and cost of the infrastructure. Distribution is even more expensive because of all the forms of chain put in the ground. Those things that are ones that will be overloaded first. It is not the generation capacity. Cory having power at the very end of the nose and having batteries takes the toll off of that generation . Andy exactly. You can store energy which we cannot do today in great amounts. You can level off the peaks and cap and chop off the peaks by having energy back in the system and getting demand when it is next. Cory therefore, with the beneficiary being the Power Company more than the user . Andy that of fisheries are multiple. Cory let me ask lane. The capital expense. They can say hey, we are looking at a 500 million pullout to raise the capacity of this new community or this Old Community using more power. Instead, could we spent 400 million to buy batteries for all those people . Andy it is very possible that i can be the case. It is also possible that the way we produce energy will change and this will favor Renewable Energy sources that can be stored. Since the problem with renewables is that they dont produce when you need them to. If you can use a battery to store energy and then release the energy when you need it, you have favored the occasion for Renewable Energy. Cory you talk about the giga factory as making a commodity or commodity pricing battery. I see two things problematic. First, the commodity pricing of batteries is that arent there inherent limitations within the science of the battery type that tesla has decided on . You can only get it so cheap. Andy for the time being, true. They will adapt and put new chemistry in. When the silicon anodes really take form and pushed into the market, they will adapt and produce those. Those can probably be produced less expensively than todays batteries because cory the factories will have to be modular. Andy and that is not as hard as people think. Cory andy draga. We are joined from new york, mark thank you. Sales of homes fell last month from a seven year high in the Housing Market reversing what is needed to give them an extension . The women in the worlds summit is underway in new york and we will examine the summits of major issues and take a look at the role in women in government. I will see you at the top of the hour. Back to you. Cory thank you. Coming up norway will turn off all of their fm radio stations and we will take a look at what is replacing it with the technological innovation and audio. Innovation in audio. Cory fm radio is going off the air in norway in 2017 in favor of Digital Radio. Audio innovation is the future audio. Is this the future of radio . Paul sparrows joins me. Is norway making news . Tell me, can you describe what Digital Radio is an what the differences between fm and digital . Paul digital basically uses the frequency spectrums differently than analog radio. It allows you to put multiple channels on a narrower bandwidth to get more broadcast opportunities and more content in a smaller bandwidth and that is why part of the reason they are switching over. People in this country that use serious fm sirius xm radio is a broadcasting of that. Norway will eliminate that. They were the first country in europe to experiment with digital broadcasting. It has been around for 20 years. In a Gallup Survey this year, they spent about 50 they said about 50 of the population in norway have these radios. That is more than there are still more than 8 Million Units not able to receive Digital Audio signals. What that means is that as they make a decision to turn off fm radio, many people will be left with devices that cannot receive the Digital Audio and they will have no access to radio. Cory the way i think of it is an analog radio sort of last signals and you hope you are close enough for perception that you can pick it up and listen to it whereas digital is chopped up in pieces and can get any kind of reception. Reassembled pieces give you a clearer signal. Is this being done for the notion of a better sound quality or it is this about offering more stations . Paul the truth is it is not better sound quality despite what you heard. If they squeezed bandwidth and do the broadcast at a lower rate to get more channels into a smaller bandwidth, the audio already is actually worth and you get worse than it did on fm radio because you can get more rate channels on a smaller spectrum and that frees up other spectrums to be used for cell phones, data transmission. The truth is that the nature of the quality of your audio is determined by the bandwidth you dedicate to that. Cory is this the future of the u. S. . Are we going to see fm radio go away in favor of Digital Radio or digital on the fm spectrum and more spectrum available in places where we are desperate for spectrum like Cell Phone Service and data . Paul i think would be difficult to do with the way the norwegians are doing it, even with their fairly high penetration. Only 20 of the cars and normally have Digital Audio podcasting capabilities. 80 of the cars on the road will not be able to pick up the digital signal, in particular older cars. Almost impossible to upgrade them. The transformation like this really impacts the poor and elderly is purportedly disproportionately because they are the most likely to not be able to upgrade. It has social connotations in terms of making these decisions. If you think back to 2009, when usmade transition in television, they spent over 100 million in Public Service campaign to try and educate the public and offered coupons to convince them to get the converter boxes you needed to get digital signal and make it visible on your standard analog televisions. Still, millions and millions of people were unprepared without digital transformation. In the future, you will see Digital Audio becoming more prevalent in the United States but i doubt you will see in a limitation of fm for at least one decade, maybe longer. Cory paul sparrow, Senior Vice President or broadcast at the new president of the broadcast. Sarah frier is here with the bite. Sarah 500 million, half a billion. Good job. Cory new york university, thanks. What have we got . 500 million what . Sarah the number of tweets that happen every day and twitter is now working to have a better show of those tweets to people who care about them. Instead of having to go to twitter and follow everyone as we are aware, they have a new product called highlight where the best tweets every day get sent twice a day to your phone. Cory will these be the tweets from my feed or will they be whatever tweet twitter decides is the best even though sarah it will be what twitter thinks is relevant to you. Cory interesting. Thank you. You can get the latest headlines on your tablet, phone, and bloomberg radio. Mark from bloomberg World Headquarters in new york, i am mark crumpton. This is bottom line the intersection of business and main street with an exclusive perspective. To our viewers here in the United States and to those of you joining us from around the world, welcome. We have full coverage of the stocks and stories making headlines on this thursday. Our commodities reporter su keenan, follows the rising price of crude oil after saudi arabia renewed airstrikes in yemen