Today. Nineup eight percent percent now. Bill, ime i get my gas have a mini heart attack. It may be major this month. We will get another couple of months of whether corrupted data from companies or the government. We could not sell as many was so cold it outside. In terms of the markets, turnaround tuesday seems to be in effect because the dow has recovered from the 326 point drop. The causes for weakness and emergingmarket concerns and the fed tapering, still in effect. Drop inlacher said the the past couple of days will not get into get in the way of the fed continuing the dialing down of the stimulus. Maybe what the market is crying out for. E want more qe the central banker was very vocal about how they are just going ahead and doing whatever is best for them and being selfish and not taking developing nations into account. We do. Microsoft looking out for number one, naming a new top spot. Stepeo bill gates will aside from his role as chairman of the board to devote more time as advisor to them. John thompson will take over for bill gates. His search went on for so long people are wondering. It hit me so closely because i spend a lot of time with our. I did not know if he would go or stay. He eventually started decided not to. They now hired an insider now. Wanted tol candidate go. Bill gates is there. You still have Steve Ballmer very close and paul allen is hanging around seattle. That is a lot of baggage. Our guest host for the day, thatr in chief of a weblog covers everything auto related. It makes sense it is matt millers favorite. It branches out to one million other sites i love. It does. We want to highlight market, and Equity Analyst who covers microsoft, is with us as well. With you. T is this good news . This is who i suspected for a while would be the new ceo. The president of the tools division, the largest part of the company, and the architect where the platform for microsoft came from. This is the future of microsoft. He has been part of that and is given more responsibility over time, more reorganization. Ive been figuring the most general i frankly think it is good for the company. We have discussed a lot when the news came across the wire, microsoft seems to have failed at almost every turn when it comes to the Consumer Perception of its products. They do really well on the enterprise side. They own it. The cfo comes from the enterprise side. Is this business going back . No. Most of it and the big focus will be. The company spent eight years redeveloping their enterprise is business. It will now drive the move to the cloud and we will potentially see substantial or explosive Growth Driving revenue , differentiating. They have been doing well on the earnings front. Very well. If the process is successful, in a year and a half and two years, the largest so far. Made to layalready the land of what he wants to do. Here is what he said is his priority. The first thing i want to do is ruthlessly up remove any that allows every individual organization to innovate and then focus on innovation, on Things Microsoft can uniquely do. He used the keyword, innovation. I did not hear disruption. I did not, but microsoft has a great press photo of him chilling out in his zuckerberg style. Trying to art. He is a young guy, 45. He hangs out with all the guys in silicon valley. It is a nicelooking hoodie and that is what i would wear if i were a billionaire wearing a hoodie. Speaking of people who have a lot of money, here is bill gates asking him to step up. I am thrilled he asked me to step up, substantially increasing the time i spend at the company. I will have over one third of my Time Available to meet with product groups and it will be fun to define the next round of products, working together. Matt, i thought of you right away because of the connection. It is something you have been covering for a long time. Itll covering ford said the ceo session problem has taken too much focus away from the products. The same is true at microsoft. Absolutely. The day he said no, he is staying, do not worry, iker caps offs price went down and ford prices went up. That is the way everyone viewed it. Complaints. Ernal people know eventually mark will take over at ford, but it was bothersome to them he was walking around. She said the same thing. Maybe he will, but it is not a done deal. Who knows. Back to getting microsoft and that to do list, he has a lot of constituents. Employees and vendors and customers and shareholders and the board. How is his message different from audience to audience . We cannot tell until he starts to deliver it, but i think he will deliver a similar message of innovation, a drive to change in business, all the things you would expect. That will be important. He is also capable of bringing in interesting items and discussions. Capable of surprising us and i would not be surprised if we see it. The xbox business is one of my favorite businesses. I wonder if they will rake up that business. A lot of people have been talking about that is the one that is mogul i sleep most likely to be spun off. They are saying they want to be part of the cloud and you have to have devices for that. The only device microsoft produced recently that anyone cares about is the xbox. It is great. Premature to say all of a sudden they will, because the outgoing regime was a big fan of that one microsoft strategy. Microsoft and the reorganization took the xbox operating system and Development Team and combined it with the windows team and are moving more of similar operate operating system components, not the move of a company thinking about breaking it up. That is the move of a company trying to combine and make leverage that works in other parts of the business. That is steve omers will his microsoft look different . His microsoft will overtime at with different because the cloud will become bigger and the cloud will drive a lot of the story. The opportunity in gaming in the future will be gaming in the cloud. Xbox live is a big big business. The point is, it is a big opportunity for microsoft if it were not just part of microsoft. Within microsoft, it looks tiny, but the reality is they will leverage the cloud investment they will do and that will differentiate them in devices in general. Thank you for your perspective on microsoft and the new ceo there. Mandela is holding a Live Conference or webcast i cannot think of the word. He is addressing customers for the first time in his role as ceo if you wanted to watch the entire presentation. You can go to bloomberg. Com. They have someone interviewing him. Other Companies RecentlyGeneral Motors has a new ceo. And she just got swarmed. They said, we will not do that with other journalists but we will interview our own guy. That is one way to do it. We will be back. Welcome back. I am matt miller. Just about 40 minutes until the closing bell. 47 minutes. Take a look at where the markets are. Allback tuesday, but not the way back. Turnaround tuesday is better alliteration. Nasdaq, it down lost 326 yesterday. The yen is weaker as well this afternoon. The yen was one big reason why stocks continued to lose ground. An important topic here today. And awill get to it minute. Matt is our guest host for the hour. We are talking media because Companies Start reporting earnings, including time warner. It began laying off employees. Also with us to talk media is paul sweeney, head of north American Research for bloomberg industries. This it seems like cost cuts are a way of life, like it was for the banks. It is. Side. Ic on the publishing Newspaper Companies and magazine companies, they are challenged with revenue. There is no growth. The only way to maintain profitability is to cut costs. You see it with time inc. As they get ready to spin out and be a Standalone Company as they have to show Profit Margins to investors. It is all of our faults and we told them years ago not to change and not grace the internet. It was part of a large strategy to destroy time. Business insider, huff po, a upstart Media Outlets on the internet taking a lot a web views. They are breaking some news. Exactly. It has been a change. If you look, what is interesting is, you had nate silver at the new york times, and he was part of a big Media Organization with some of the best traffic posts and most read stories they had done. They are founding their own companies because even the new york times, they are still moving too slowly and they are looking for venture capital. Media is still a big as is and people still care about it erie it some older organizations did not adapt fast enough. People trading upwards as well. You have got to think that is either the sign of a turn or insane. Just plain insane. Some of the traditional medias were talking about, they have to cut costs. And soent and so on forth, we are starting to see that talent on the print side really migrate from traditional ink on paper to the digital side. That is where the dollars are in terms of advertising and subscription fees. Class everyone getting into as more 1000 eyeballs, people get into it, it drives the price down. To differentiate yourself, you have to do better. That is why we are seeing a return to longform internet. You have to give value to advertisers and readers. Buzz feed does real reporting. Everything is nothing but that on the web, the price of 1000 views eventually is worth nothing. Our advertisers. By the buzz feed Business Insider where you have to click soon click through every slide. They care about audience and will pay for audience. Wherever audience goes, that is where advertisers follow. It always will be that way. The new york times, you are seeing circulation decline year after year. That is a problem when you go to advertisers. Was watching the super bowl, i had my ipad in front of me and was checking my twitter feed at the same time. For now, it is still twitter tv first. Phonead my macbook and and everything going at once. Everyone talks about Second Screen of your laptop and household. In my household, the Second Screen is the tv. With carrie underwood, we were watching twitter and i caught 90 of what was on twitter and 10 on the television. It was a better viewing experience. Quest that is how a lot of people watch tv. Tom keene viawith twitter. Were watching the same football game. Hang out with tom. It is the only way he will. On the internet, it is 15 . Some of the online video, faster than that in social media is faster than that. The dollars speak for themselves. Matt, your Parent Company is known for having a snarky tone. How important is that differentiating your content versus another weblog that focuses on cars . The idea is to do what other people cannot do. Interlink, source which runs motor trends, we reported first last week, we are hiring people right now and it is because, if you want to read the same review everyone else does, that is fine and there is alot of market for that area story was broken because everyone had that story and they passed on it, not believing. You get in trouble sometimes. You have broken embargoes in the past. We do not break embargoes. We do not buy embargoes. They are lazy journalism. The information a week ahead, our jobs as journalists are to find that information. We called people might them know we are breaking the story, but we did not agree to the embargo. It is the other thing we do on the web here in magazine journalism, ive done it before. It gets lazy. They have a month to do things. It is not on the same schedule. You guys here get up early in the morning. By 3 00 everyone. Class you are not sucking at the of the organization theteet. The teet. That is the family acceptable word. Ask matt, even though you just said that, we will let you stick around here and we will be right back. Time for global outlook. Investors remain concerned about emerging markets to shift away from that for a second, bill gross sounds skeptical about chinese gdp. Six percent or seven percent , emergingmarket companies, no one knows what is there and it is a little bit of baloney. We will have to wonder going as tod through this year the potential problems of china and other emerging markets. Any time you can make a reference to lunch meat in china is a good opportunity. It is not a shift too far away from the auto market you covered. , it is now the biggest auto market in the world. Fastestgrowing, and General Motors is really chinese motors at this point. They sell more cars in china than the United States. Is audi the big seller their . The government officials tool around in them. It is interesting. They have a whole range of cars they do not sell here to meet the chinese market. Wherever you are and the company you are working for, you cannot have a nicer car than your boss. They sell an extended version they do not sell in the United States. Consumersand chinese tastes are similar. That. Shy cars and all of carson also talked a little bit about china. He has been known to short a couple of big china stocks and he asked if we can trust data coming out. You cannot really trust the data coming out of china. That is reasonably well established. You have collection problems but also a government that is really knowingly not putting out real data. Someone argue you cannot really trust the data out of Federal Reserves either. Conspiracy theorists are all out. It does not count fuel costs. You cannot eat and ipad, that is what i always go back to. If you do not think there is inflation, go to the grocery store. The problem now in markets is that there is not enough inflation and that has been one of the broader concerns driving stocks and emerging markets, u. S. Markets lower, it is 26 minutes past the hour. Lets take a look at where stocks are trading right now. For the dayur high but we are looking at gains right now. The dow is up by 4 10 of one percent and that is about 78 points. Yesterday, 326 points it fell. That was the worst to drop of the year so far. The second worst drop of the year was 318 points and that was the week before. Start. Y rough pretty volatile after that. This puts it into perspective. Not much of a turnaround. Bad in general for stocks. And jcp. Down 9. 9 right now. The Bloomberg News story on the terminal right now says jcpenney shifting from terrible too bad. I think the best idea for jp jcpenney, i think jc should i jcpenney and rename it. They would make a lot more money. We will be right back. Welcome back. 30 minutes away from the close of trading in the u. S. I will focus in on my favorite subject. That is cars. Here with me, editorinchief, before we go further exactly what this is for viewers who do not know. We are probably the Worlds Largest online news site. We just cover the Auto Industry the way normal people would cover it. It is not all press releases and boring. People rent cars and race them. To carsthing related and not necessarily car reviews. Yes. You will love it. You have a lot of other family sites and we already mentioned this. You have opposite lock, and on truck yeah, my domain, because i prefer a truck over a card. I need it. There is a great story about the fact toyota might come out with an amazing offroad competitor to the ultimate truck in america. I thought there is no way it would happen. They would they will definitely show something. We show something and motor trend did a front page cover story on the plastic model of a car they showed that they will never make. They will never make. They do not have the components to bring it out, but they have a nasty truck in the tundra. It is a possibility. I think they could do it. The ceo, it is his name on the car and he can do whatever he wants. He loves to race. He said, we want to make more interesting cars. What is the point of building boring Toyota Camrys all the appeal i do not get the of the pickup truck. Thisw could they make bonkers truck . It has racing suspension and wheels that are 35 inches, it is a monster, but they sell them out. They cannot keep them on the lot. 10 other guys that find it amazingly attractive. One out of every 10 piece or just people goes offroad. They look awesome. I went offroad and with one right when they came out when i was out in a random place in texas driving a truck and people thought it was a concept car. The reaction i got was the same i got driving around the streets in a lamborghini. It is bonkers. That is a decent rice tag. I spoke with someone who defines the suit the future ahead of the chinese new year. He said last year was the year of the automobile and this would be the year of the u. S. Real estate market. Getting back to the year of the automobile, pickup trucks, that was a big precursor to the boom we saw. Will they continue to be big drivers hear . Absolutely. That is where a huge chunk of fort rough its come from. The growth were seeing of chrysler, that was only one of the big three that reported positive sales growth last month. People love trucks. For trucks. Azy i sold both of my cars. While everyone else here is i will do the snow, snow we dont. You mentioned one of the great accepted travesties of automotive journalism is that these companies do not tell us their margins on products. It drives me bonkers. Analysts try to suss it out. , i passed more than half of profits for ford. We do not know for sure. They make tons of money. They are on a completely different product cycle. Cars get refreshed every four or five years. They make a Huge Investment in a hope pays off. Huge upgradebeen a cycle this past year and that contributed to car sales going back to the highest since before the recession. Absolutely. The question is, are people driving more . There is a chart of vehicle models. The data from the department of transportation, one interpretation is that it peaked in 2008. Three point one million miles traveled by americans was the peak. Yes. Back in 2008. One interpretation might be these are people replacing old cars and not necessarily new drivers coming on. Transportation, are people walking more . There is some of that. There is a trend toward urbanization. I live in