Have been born in the u. S. The effects were also seen in three other pregnancies that were ended. The cdc says 234 pregnant women have been diagnosed with the virus this year. Im shery ahn. Bloomberg west does next. Is next. On cory johnson, and this is bloomberg west. Coming up, oracles transition to the cloud is accelerating. The companysdown cloud fueled q4. Plus, the value of bitcoin has gone up 70 in the last three weeks. We will talk to experts. And the cheapest, smallest satellites in the history of aviation are changinggame. First, to our lead. A twist in one of the biggest stories. Bloomberg has learned before microsoft bid on linkedin, salesforce made a bid. Sarah frier joins us. This is really interesting, and it starts to make sense what microsoft saw in linkedin, because salesforce saw the same thing. Jeremy and also the price. People were questioning microsoft paying a premium over their current trading, although lower than what linkedin was trading at six months ago. People were saying there must have been something going on. Of course, bloomberg broke on monday that Goldman Sachs was working with a rival, which is thee which is why linkedinmicrosoft deal was handled by morgan stanley. Now we know. Cory do we have any sense as to why this bid was turned down . Did they not like the people involved . Ceo ofnteresting the linkedin will remain in control of linkedin while brought in as a separate company, not fully merged. That is a thing jeff weiner said that really attracted him about the acquisition, that linkedin would continue to operate independently. There is that separation between seattle and san francisco. In this case, we dont know what salesforce was looking for, but linkedins products tight end pretty well with what salesforce has going on with their customer management Customer Relationship management and software. The problem is that salesforce does not have the spinning power that microsoft does. This could be big for them. Cory i imagine they would have to take on more debt or something. I wonder further, if we look at the privatization, you wonder if microsoft sees a chance to build their own Sierra Software and compete with salesforce. Jeremy i absolutely want to leverage the data on linkedin for analytics they absolutely want to leverage the data. They want to be able to tell someone if you went to college where you went to college, if they know somebody you know. And microsoft has a Customer Base that maybe linkedin has not had yet. All these organizations that use microsoft products internally that may not have had anyone on linkedin accounts. Cory i spoke with a former linkedin executive who put linkedin on the outlook, and it was a for your project. It took that long to get into the sales cycle for microsoft stop presumably of microsoft. Presumably it will move faster. Reporter thats another thing it will have to deal with, the culture clash between a tmoving silicon value Silicon Valley company, and microsoft, which is bureaucratic money and has not had the best track record with large acquisitions. Hewlettpackard, compact, microsofts acquisitions are almost always a disaster. Clouds,our heads in the oracle posted earnings after the bell. Change year over year, but profit is up 2 and cloud revenue up 49 yearoveryear. Earnings per share, 4 up. Inres for oracle also up afterhours trading. Joining us is Rodney Nelson in chicago. This idea that salesforce, another company you follow, was acquire linkedin. Now that we know this is true, what do you think of this . Anurag i dont know how much they are going to pay. I have no idea. I will have to go back and look at the Balance Sheet and look at the cash flow, but it may be for aifficult to Swallow Company like salesforce. Microsoft, we all know, has about 100 billion dollars in cash, so it is easier for them to do this. Understated indeed. From a competitive standpoint, needing salesforce to keep it away from microsoft . I think when you look at the data that linkedin can provide, it is an incredible asset for any company that has leverage to the sales cycle of any enterprise. Major crmook at the vendors out there, it is microsoft, oracle, and salesforce. Salesforce saw the opportunity , andter a rich set of data i think microsoft saw that same dynamic as well, and it does not surprise me that salesforce made a bid, but i dont know how they would manage to pay for it without raising a massive amount of debt, although microsoft is obviously doing the same. Going back to oracle, when you look at this quarter, they were boasting about the cloud numbers, but with good reason. They are saying the growth may be 70 to 75 next quarter. Thats really impressive. Anurag all of this is very impressive. Even though we know there is a lot of global volatility going on in terms of spending, despite that, the cloud numbers are very good. On the call, they said for your club numbers will be more than the past years they said that cloud numbers will be more than the past years. They are wanting to showcase a lot more clout competition, which we have been talking about. It will be interesting to see how sales forces salesforces bookings will be in the last quarter. Cory the oracle chairman has been speaking on the call. Seems to be taking a shot across the bow. They just bought demand where, they are making acquisitions, but they are in the Customer Experience sales area. They dont compete in the largest category. [indiscernible] and we think that gives us a huge advantage, that our footprint is wider. Cory rodney, the erp focus for oracle is interesting. In her size enterprise Resource Planning software. Oracle thinks this is their great strength to conquer the cloud. It makesure, and sense, because that has been their bread. They are the Market Leader in the software. There are a lot of other leaders out there when you mention s. A. P. , you mentioned workday, salesforce is not a competitor here. A have a lot of increasing customers increasing attracted to an sapbased environment because of the amount of internal infrastructure that they can awnsize by switching to Software Service solution. I think it makes sense that they are having success. The challenge longer term for oracle will be how they handle their database business, which is increasingly under assault from open source solutions. Those are the fraction of a cost of an oracle database. I think they will have a tough time managing that transition, although i think they are making a lot of strong headway, and i think that is what will carry oracle in the long run will stop in the long run. In regards to the products getting increasingly complex, oracle says that his kid stuff, but they are losing market share to some of those companies. Anurag absolutely, no doubt about it, but at the same time, a lot of people using the oracle database. Doing a fairly smart thing, to move their database to a service, so what they are saying is, we will manage your data in our data centers. If this succeeds, they should be able to fend off the competition from the lower end databases. Rodney, is all the catalogs that oracle has clouded a true cloud . They are generally a true to form cloud business. The infrastructure and Service Businesses a bit of a misnomer. A lot of the services tied up in that business are more like on Premises Data Center revenues. As all it Infrastructure Service sounds nice because that is what amazon and microsoft are is ag to do, and that large opportunity for those companies, but in reality, oracle is not addressing those same needs in terms of storage for Companies Looking to leverage cheap infrastructure. I think that is probably part of the business that is a real misnomer. Cory i would say that if they are focused on the kinds of software they are selling, yes, it is not all the storage or compute stuff, but if it is some runhe compute that has to your software and database, that seems cloudy to me. Anurag it is indeed rodney it is indeed, and i would confirm they are trying to make this database as a solution work. I think there are some challenges that larry would not be able to readily admit in terms of those workloads migrating cleanly and efficiently. Furthermore, oracle is not one that is going to come down on price. And you look at all those factors, i think there are challenges until that part of the business can be deemed a true cloud business. Cory interesting. I like the sap job, where you said your concur joke, where you said you concur. Good to have you both. Thanks a lot. Worstker kvm having its day in more than eight years. Shares dropping 18 . Why . On thursday, the company would for 1. 6 billion in stock, but they are confused by but investors are confused by the move as well as the timing. Is described as a slow growth asset at best. Coming up, bitcoin prices surging to 70 for three weeks. What is driving that rally . We will break it down. Cory the price of bitcoin surging in recent weeks. It is a 70 move in three weeks, close to an alltime high for big for bitcoin. What is driving it . Of dont care what the price is, but i am curious about the reasons behind this move. What is going on . Sonny i think there are four reasons contributing to the price increase. The first off is china. There is a lot of activity in china. The price runup happened about a month ago, and that is when china started to devalue and capital controls were going into effect. People are doing this to get into money with a currency that is not get their money into a currency that is not being depreciated. China has a very big, active Bitcoin Trading population. You notice a lot of the price 10 00 at nightt east coast time. Thats when the price really starts moving. We are having barbecues and all that at that time. Now, we have a chart comparing the bitcoin price to the yuan price. Its just amazing. You see the yuan declining over that period of time by 13 and bitcoin up 210 . Thats amazing. Bitcoin was up to the dollar last year, too, up 35 . Is second reason is britain possibilitiest are getting more real, and we saw the same thing last year with greece. The price went up with bitcoin again. Cory thats weird, because you have not seen the european bond yields responding with the brexit going to happen. What does that tell us about who is trading bitcoin and how they have a different view of the world . Sonny exactly right. Bitcoin seems to be trading more like gold. Gold has been up over the last six months, so bitcoin has been up too. People look at the coin is a safe haven, almost. Cory it almost seems like a dual trade it seems like a dual trade. Sonny some of that is happening. The third reason is having a bitcoin network. That has been talked about in the news in the last year. Having,ving, not like a hug. Sonny come july 10, people think the price will run up. People have known about this for a long time. I talked to one of the largest chinese exchangers last night, and they said a lot of buying is happening for momentum trading. It seems stupid. A lot of people think this currency is a lot is worth a lot of money, so when the price starts running up, people have a fear of missing out. Cory sort of like saying one big potato should is worth more than two Little Potato chips. Of. Y sort and the fourth reason, which i think is a little exciting, is that bitcoin adoption is growing globally. Two years ago when the price was over 1000, the number of Bitcoin Transactions per day worldly worth 50,000. Were only worth 50,000. Cory what are those transactions . I have not seen them pop up. Sonny bitpay is one of the largest Transaction Companies in the world. Ago, 70 of our transactions were happening in the united states, now it is reversed. 30 domestic, 70 interactional international. , one of the largest gaming platforms, went live because there are people who want to pay that way. Cory it is that Big International usage driving this. Sonny yeah, you see people from venezuela and rozelle moving out and brazil moving out of their home currency and into the coin. We take bitcoins and give microsoft the currency. Microsoft never takes the bitcoin. Cory so its not as much of a working capital as it is for you guys, i guess. Always good to see you. Viacom. P, more drama at believed among is moving philippe delmont is moving from the board. Movingtify could be closer to an ipo. The companys most recent higher. We will be right back. Could spotify be moving closer to an ipo . Paul vogel seems to hint at that. Vogel was hired to manage investor relations. Will work under the current cfo. Viacom. Anges coming at Sumner Redstone has moved five members from the board, including ceo Philippe Dauman. This is the result of the battle raging. Lucas joins us from los angeles. Why is this happening now and not six months ago . You well, if reporter well, if you look at amusementst national has been, they have been very methodical. They have taken multiple steps to slowly cut Philippe Dauman members, board longtime allies of Sumner Redstone out of their lives. It all started about a month ago when they took philippe and George Abrams off the board of National Amusements and off a trust that will gather the redstone familys assets. Steadyhen, it has been a dribble of new statements. This has been the big one that everybody has been waiting for, taking philippe off the board and changing the board such that National Amusements has the vote to change management. Cory in terms of that, they own 80 of the stock. They have been charging in this direction, but we think this is reporter a lot of the statements have been by representatives of sumner. There have been a lot of representatives in this situation, which has prompted the viacom people to say that sumner is being manipulated, but there is no real evidence because nobody can see sumner. Cory exactly. Does it matter . Reporter the burden of proof is on fire, and their people. There have been a lot of statements, so on and so forth. Those are valid under law. It is up to viacom to prove that he is not making these decisions, that he is being manipulated, and other people are conniving for control of this media environment. Cory did we know who was on which side until today . Reporter the ones that were replaced today are the ones who have worked with philippe and longest time. A lot of the ones who stuck around are newer to the board. The surprise was tom dooley, the ceo of viacom. His remaining on the board will only fuel speculation that he will be the next ceo, whether interim or fulltime. Cory its quite a story. This has been a deliberate, kind of slowmoving mess. Reporter and truth be told, these Board Members have not actually been replaced yet. Philippe remains as ceo, the other four board remembers Board Members remain. This does not change until a Delaware Court decides if it is legal. That could be days, weeks until that happens. Cory lucas shaw, thank you very much. Can voice in ai recognition change the app landscape . We will discuss the biggest headlines. You are watching bloomberg west. Director john brennan updated lawmakers on capitol hill today on the islamic state. Brennan says they are working to the employee operatives for further attacks on the u. S. , and they are relying on guerrilla style tactics for territory losses in iraq and syria. Of americans view the Republican Party favorably, include according to a Bloomberg Politics poll. Lowest result for the gop since the start of the paul in september 2009. The Democratic Party is seen favorably by 49 . Hillary clinton has won the endorsement of the aflcio, the Worlds LargestLabor Federation with 12. 5 million members. The group had withheld its endorsement during the primaries when secretary clinton was challenged by bernie sanders. And a fizzle to 13 straight months, the global average temperature for 2016 is averaging 55. 5 degrees, which beats the previous record set last year. To blame, both manmade Climate Change and the el nino weather system. Day,l news 24 hours a powered by 24 hundred journalists in more than 150 news bureaus around the world. From the Bloomberg News headquarters, im shery ahn. I am joined by bloombergs paul allen with a look at the markets. Good morning. Paul good morning. We will start in new zealand, trading for 30 minutes so far on friday, currently off about 1 5 of 1 . In negativees still territory, but they have been creeping up, and we are expecting gains on the a sx in australia as well. We will be keeping eyes on shares on crown resorts. They had a pop yesterday after they announced they would spin since macau was weighing on the australian assets, but it has been received very poorly by the credits rating agencies. Continue tot will have declining cash flow for the results. Crown yesterday was up by 12 on the news of that spinoff. Taking a look at amc, what am z, one of the major banks in australia. The media says we could well see a possible sell down of units bank. Mz that is some of what we are watching around the region today. Cory at the App Developers conference earlier this week, there is a running focus on the apple watch. The updated operating system is said to provide faster speeds, making it more independent from the iphone. Lyft cto towith talk about him with the new developments. Perspective, we have been able to use new features for new wayslity to request a lyft. Lyft is now going to be available this fall on the watch, and he will be able to request a ride with just a tap of a button and actually get realtime updates on your wrist. Cory so d