Earnings. Revenue little changed at 12 billion dollars while profit rose slightly to 2 billion. The ceo says Revenue Growth in the Data Center Chips and the internet of things help offset slumping demand he sees. Shares are up in afterhours trading. President obama is going to drop cuba from the list of nations that sponsor terrorism. The president notified congress about the move today. It had been a Sticking Point as the u. S. And cuba try to normalize relations. It comes just days after obama met with the cuban president castro, the first formal meeting between the u. S. And your u. S. And cuban leaders in more than 50 years. The Senate ForeignRelations Committee approved the compromise bill giving congress the power to review a deal with iran. The Obama Administration is now indicating that the president will sign it. Former defense secretary William Cowan says such oversight is necessary. I dont think you can trust iran. They have to earn the trust. They will earn that trust by showing their committed to an agreement that restricts their ability to break out into a Nuclear Weapons capability. Emily the compromise bill would look cut the length of time to 30 days instead of the proposed 60 days. Avon products exploring the sale of its north american operations. The Cosmetics Company is not running a formal sales process but is open to offers. Thats according to people familiar with the matter, who said declining health in north america may deter potential buyers. Avon has posted three straight years of losses. And google has been told it will face charges by the eu for violations. Peoples knowledge of the matter say a decision will likely be announced this week, after more than four years of regulatory scrutiny on how google delivers internet search. Google school gets about a third of its revenue from the region. Aol takes aim at google and facebook with new advertising technology. Today aol unveiled an open programmatic ad platform designed to help advertisers figure out how to spend their dollars best. The Technology Takes all of the various ad tech and puts it into a onestop shopping at platform. It allows brands to measure the effectiveness of their at. Cory johnson is with me here now. You spoke with it aol ceo Tim Armstrong. Should google and facebook be worried . Cory they are all going after this market, providing ads not just for their own network but for the web on all devices. And even for television, a very interesting development. I talked to Tim Armstrong about that very thing. Tim armstrong what really is happening is the biggest pivot point in media, to the way internet media is going to be done. The targeting of advertising at a much deeper level across mobile internet and today are lots of one by aol is a front product for the next generation of internet advertising systems. As you just described, its the most powerful time for marketplaces in the world. I think aol is stepping up with the most powerful futuristic marketplace for advertising. Its been five years of work and very exciting and externally. Internally we are even more excited, because we know the power of this product. Cory you guys have done so many acquisitions of all these little companies. Is this stitching it all together in one platform . Tim armstrong we had video and Programmatic Advertising and global content brands. When you think about those three areas overall, we have knitted together both of these platforms with some of the most exciting acquisitions in. Today when you take a step back aol is a top three player in video, top player in distributed content on facebook. I would say today for the programmatic platforms nobody has a more danced system all the way through mobile than aol. The stitching together of our strategies has been really important. We have not changed in five years and its a 30 year strategy in front of us. Cory i think about what clever marketers do. They cleverly did not buy a Super Bowl Ad but they went to the market where they thought they would have the most impact. They wanted to go with a particular kind of ads that would reach a young male customer. They were clever about how they would target individual tv markets and markets on the web. It sounds like youre talking about the ship from demographically focused advertising to results focused. Is it a combination of the two . Tell me how that might work in a real case example. Tim armstrong oh easy way to think about it, if you are intuit youre taking advantage of a very singular trend. Media was held in bulk and sent to consumers in bulk and now its being built on a singular basis in many cases and sent to consumers on a singular basis. Within advertiser like intuit on our platform across multi device and multiformats can talk individually to consumers. When you think about it, the future of connecting with people is really going to be on a singular basis. Thats why social networking is important and people doing individual searching is important. Our platform is the first to take advantage of the singular nature of singular content going to singular consumers. The fact that almost all human beings in this country are Walking Around with machines in their pockets that are essentially as popular as the cable to powerful as a cable box, all of our systems are built to deliver highquality content and highquality advertising in a singular way into everyones pocket. That is going to be a very significant shift for the entire media and Internet Business for the next two or three decades. Cory there is a technological problem there because smartphones dont accept cookies. How can you track the efficacy of an ad when you cant get that feedback from the cookie . Tim mobile is really about device targeting and for us we have 100 million devices in the United States that we mechanize and understand and crosslink between a mobile device and a desktop and ott. That creates a very powerful union. If you think about the way the consumers consume media newspaper, a broadcast tv network, or maybe on digital and today with aols new system we can cross format target you in general. It actually makes what cookie targeting was in a much more powerful way because it is cross device. When you think about advertising in the future, a lot of people think technology is going to deflate ad places overtime. I would make two bets with advertising one is that it is going to get better and more creative for consumers, and number two is you get ad prices go up. A 600 billion industry where there is a lot of ads for you dont know how they work and people spend 600 billion. Imagine how much they will spend when you know how much each ad to each individual consumer works. Emily aol ceo Tim Armstrong there. Corey, is this something he has been plotting for a long time . It seems like a lot of things led up to this point. Cory they spent hundreds of millions in acquisitions to get to this point. What is interesting is not this way it provides efficacy for advertising and huffington post, or even other parts of the web but the notion that this goes crossplatform to television smartphones, aols and others sites on the web. This could truly be transformative for aol. Emily aol could be telling them where to put their dollars. This is, lets be honest, relatively archaic media organization. Cory what they have been really clever about he doesnt take a rocket scientist, but they recognize they have this great cash flowing but slowly declining business of Internet Access provided by aol. They knew they had a certain number of years as that bleeds its way out. But using that cash to create a network of places to run in and now a machine to run ads across all networks, it is very clever, and it becomes a very new and different kind of Company Going forward because of this one announcement today. Emily new aol. Cory why not emily marco rubio, the oakland as of president ial politics . We will talk about his moneyball strategy to win the white house, next. Emily i am emily chang and this is bloomberg west. Still to come, senator marco rubios moneyball campaign. How he is using the data to woo donors. And a major telecoms possible Alcatel Lucent deal. The imf is keeping its Global Growth forecast at 3. 5 for this year. The imf predicts that the strong u. S. Dollar will boost europe and japan and cause some softness in the u. S. Here is chief economist Olivier Blanchard on europe. Olivier this is leading us to have a higher forecast for the eurozone for this year than last year. The main risk that we saw last year was the risk of recession in the eurozone. That seems hasnt disappeared but it is much smaller than it used to be. Emily as for greece, he says the greek exit from the eurozone would be extremely painful, but he says the rest of the euro is in a better position to deal with it. Real estate website zillow gives an update on its integration of arrival website it purchased earlier this year. Zillow says the long ftc approval process has caused hurdles in the transition and will lead to lower than forecast revenue for the year. Zillow paid 2. 5 billion for trulia, including stockbased compensation. The 2016 president ial candidates are already sparring through twitter and youtube, but when it comes to tech and politics, it is not just about social media. Campaigns are now investing in big data come up big time to learn more about voters and their competitors. Florida senator marco rubio announced his campaign yesterday and fundraisers are already calling him the moneyball candidat. To take on cash heavy republican rivals like jeb bush, rubio is turning to Data Analytics and Digital Strategy to run a leaner operation. The optimizer ceo has seen the effect first hand. You were the head of analytics for president obamas 2008 campaign. What is rubio right about the other candidates doing wrong or not doing at all . Dan i think his approach is really clever because he is going against opponents with a huge amount of fundraising behind them using the strategies of his father and brother, raising hundreds of millions of dollars through traditional means. Rubios strategies about investing in areas where they can have a big impact in terms of efficiency. That is where i think using data to make better decisions is critical. Emily areas like what . Dan particularly around fundraising. That is the strength of datadriven decisionmaking right now. If you can think about where the campaigns can spend their time as a candidate, and doing traditional fundraisers through hotels will bring some money in, but if they are able to use optimization and testing to improve the effectiveness of their website and online presence, that can raise a lot of donations from any small donors. Emily what is more powerful big data or big money . Who would you rather be . Dan big data is potentially a way to become big money. If you look at the history of the Hillary Campaign versus obama in the primaries of 2007 the First Quarter of the fundraising race, hillary used traditional means to raise slightly more than obama but the following quarters, through many small donations, obama is able to beat the traditional tactic of traditional fundraising. Emily i understand hillary this time around is very much investing in a good data. Whose strategy is better . Dan hillary might have the best of both worlds where she has connections to raise big money from the donors but also the grassroots support for datadriven decisionmaking to raise money from many more voters. Emily how big does the Big Data Team needs to be effective and how much does this cost . Dan in 2008 the team was small, about eight people. Both of the Obama Campaign and the Romney Campaign in 2012 invested heavily in optimization and testing and we saw dozens of people focus every day on using experimentation to help make better decisions. Emily are you basically just paying for the manpower . What else are you paying for . Dan i believe the real value comes from having the person on the campaign do what they are great at coming up with ideas to test. And have the technology do what it is great at, statistical inference, and figuring out what actually works. The marriage of both, the creativity and technology, that symbiosis is where you have great impact. Emily give me a sense of how this works. How quickly can you access the information and what does it lead to . Dan it is in real time and it comes down to using the data that the campaign has about somebody to give them a better experience. It can be as simple as coming to the website and realizing you have donated before. If you donated 10 before, the message and experience you get should be different from if you donated thousands of dollars before. In that case you should be asked to come to a Hotel Ballroom or to meet the candidate over dinner. If you donated 10 before, that is not quite as effective. Emily what types of companies will these candidates be turning to . Are there startups out there that are particularly efficient . Dan i happen to know one. [laughter] over the last few election cycles, several companies have emerged from the opportunities to use data to make better decisions, both from the right and left side of the aisle. Emily do you think it just pushes to the change jeb bush is hip to the change . Dan it will take one quarter of the fundraising where rubio beats him for him to consider a new strategy. Emily thank you for joining us, former director of analytics for obamas 2008 race. Nokia is in talks for its biggest acquisition yet. What will its potential tie with alcatellucent mean for the Telecom Business . Emily i am emily chang and this is bloomberg west. Nokia is in advanced talks to buy French Company alcatellucent. Talks are so serious that the ceos of both our meeting with french president Francois Hollande it today. Such a deal would be nokias largest acquisition ever and could fall the past erickson as the largest maker of Wireless Network equipment. Here to break it down is editor at large for johnson. Cory johnson. Paint the big picture for us. Nokia isnt the company once used to be. And alcatellucent is a Different Company as well. Cory back in the dotcom bubble, there is no bigger deal than alcatellucent in the world of networking. The french companies, alcatel and the former at t labs, bell labs, later called lucent technology, when they came together it seemed like it would be the dominant Network Business in the world. What happened was it is hard to run a business in france. It is hard to make changes to business in france and the business struggled mightily. But lately alcatellucent is killing it. The number one networking business period out there, top five in all that it serves. As my friend tim savage likes to say, it is really lucentalcatel now rather than alcatellucent because the lucent business is the very best in the world, and they are getting that benefit from market and they really finally put this long, slow slug of our merger behind them and are doing quite well. Emily this could create a rival to ericsson and cisco. But is bigger necessarily better . Cory i think it is a fair question. The quality of their products, the core of people who buy their products, whether it is verizon or at t or any number of Telephone Companies around the world, is topnotch. Cisco is having problems selling in china in part because the u. S. Government products are not widely wanted because of nsa issues. And their products arent widely sold here because of concerns over chinese spying. You can see it in the results and the revenue the revenue has been shrieking on an annual basis as they have gotten rid of crummy businesses, and they had struggles along the way. You have recently seen a turnaround in the profits of this business. The profits in the last six years, the profits in the last six quarters, have started to look a little bit better. Still losing money, but last year losing only 118 million. That is a significant turnaround. While sales have come down a little bit, losing less money, selling a little less and losing a lot less money is a significant improvement for this company. Emily could the proposed time warnercomcast merger impact this at all . Cory yes. They will spend less and are an important customer in this arena. It is worse for all the competitors, certainly nokiaalcatellucent. Emily what does this mean for nokia . Does it mean more customers in the United States . Cory it is a very big deal for them. Emily cory johnson, editor at large. We will keep watching to see how the talks unfold. Coming up, ibm makes a big bet on health tech. How supercomputer watson is moving health care to the cloud. Just because im away from my desk doesnt mean im not working. Comcast business understands that. Their wifi isnt just fast near the router. Its fast in the break room. Fast in the conference room. Fast in toms office. Fast in other toms office. Fast in the foyer [pronounced foyyer] or is it foyer [pronounced foyyay] . Fast in the hallway. I feel like ive been here before. Switch now and get the fastest wifi everywhere. Comcast business. Built for business. Emily this is bloomberg west or we focus innovation technology, and the future of is this. J. P. Morgan chase reports a 12 increase in firstquarter profit, beating estimates. Trading revenue rose in the First Quarter for the first time in five years. Here is jamie dimon on the current environment of banking. Jamie dimon Banking System