Aspirations. Guys. E halal its earnings. Ith quarterly profit rose to 7. 75 billion. The jump in iphone sales making up for the drop in ipads. Microsoft out with its earnings after the close. Office fell shy of estimates. Half it down by the acquisition of nokias handset business. And herbalife sides shares rise getting more than 25 as the lachman failed to contest ackman failedll to convince investors there was fraud. Cory johnson joins us from san francisco. Lets go through microsoft. How did the Company Performed during the quarter . Gross margins slipped but we have seen that going on for the past couple of months. We were talking about the surface. I was just asking. Spent. Million somebody out there is buying a lot of surfaces. Maybe validating the surface team we will slope will file later. How much . 409 million. A lot of money to develop things like the surface and the xbox and a lot of software. Talk about the profit margins. They are declining. As the business shifts to a different kind of is this inclusive of more hardware and is, it is 67. 5 . In mywest gross margin model that goes back a decade. It could be the lowest ever. It took a dramatic change in the kind of Business Microsoft is that the Company Still throwing off tremendous half it and it will can it continue to do so. Promised to deliver. They deferred that revenue, it is coming but not yet. I wanted to bring in our s. Est i want you to tell us about to getft and its effort mobile users through nokia. It did not seem to work out the way they planned. Microsoft missed the boat. By they missed the entire mobile revolution. They should have given it away and competed with android. They will have more people coming online and using android. Not apple, not microsoft. This is the battle that microsoft lost. This and they are struggling. It is not an easy battle. Compare that to what is going on at apple. They seem to be winning the war. 35 million of them. 13 yearoveryear rise. They have a new product on the way and a bigger phone as well. It could, sooner. Iphones, 35. 2 million a big rise in the yearoveryear basis. They were interesting other things going on in terms of where we saw growth. Up. Ntosh with sales we are seeing the growth in the macintosh business possibly because of the ipad and iphone helping it bring along sales in way that ways we have not seen. There is a big rise in sales. Tell us about apple and lets start off with the mac business. It is great to see the mac is this going with that halo effect of people saying it. Maybe that is too strong but people are getting their heads are on the concept they want to use devices in the same ecosystem. If they have an iphone it makes a lot of sense to have an act a mac. 37 billion in sales for the last three months and then they take nearly 8 billion of that and put it in their pocket. Have you seen a company like this . Apple is amazing. If apple does not come out with the next big thing it will be in trouble. I give them another year of beautiful growth and amazing success. Unless they come up with the next trick they will get eaten away by the lower end of the market. 50can buy smartphones in for 50. The poor are going to android. Microsoft is squeezed out. Now you have the two ends winning. Goahead. The average selling price of an ad iphone was 500 51 dollars. That is the lowest asp apple has had with the iphone. There is a blended revenue. It is lower than ever. We will see what happens with the next device. Like. Sps are they are abutting the price slide little bit and i think they recognize they would rather it 30 marketl share and seven percent of the profits. The android with seven percent 7 market share. Attention to the ipad in the ipad mini. Apple released the ipad and ipad mini almost a year ago. We will see updates to that coming out. Ipad units were down yearoveryear but are we going to see that increase, maybe as the ad touch id to it and that becomes part of the ecosystem. Iphone sales going up and with larger screen iphones perhaps being the next thing, the highend Android Market is dominated i larger screen phones or smaller tablets. Iphone cut more into sales . Possibly. It will cut into the higher end of android sales and not just here but in those emerging markets in china. That is what you will see is this cannibalization. Pick up on apple and china. Particularly the government and claims that apples system may not be exactly conciliatory to the chinese legal system. China is doing everything they can to block apple and block western companies. They are rigging the deck against these companies. They manufacture in china. If i were tim cook i would accelerate the return of manufactured act to the united states. Market. Them out of the last point to you. Apple users versus Android Users. Is it a common theme that apple users spend money where his Android Users do not . That is what we are seeing. There was an interesting thing in the eu where google could not call apps free anymore or nobody can. Andat purchases App Purchases cannot be free. Is what they do and they do not apps,pend money on the they spend on the ecosystem. It is all right there. Ecosystem, apple. How much is it worth to them to maintain that close system . Andthey want to experience keep the customer create we had Ryan Marshall who is a good analyst on wall street. Is good work and brian was telling us the story of how he was standing in line ready to switch to a Samsung Galaxy and he thought my photos are on here, my apps are here. He stuck with what he has got. You can see that working through the is this. I want to throw to numbers out to you. Sold 220 sat million ipads. 551while they have sold million iphones sold suction. An amazing number of product sold for very high price. We can counter them tonight i am guessing. Thank you very much, cory johnson. To David Hamilton and vivek wadhwa. Details on how bill ackman failed to convince investors that herbalife is a fraud. I will talk with dee snider. His latest project involves shakespeare, puppets, and lots of violence. That is next. This is taking stock i am pimm fox. Has an update. For the First Time Since the crash officials are providing crash sites on the itself and what took place. What theyre saying is they are confident they detected the Missile Launch from a rebel held area in the eastern ukraine. Missile did that take down the plane. It is the most likely scenario they have come up with. They are not saying with definitive proof they knew who fired the missile and all the circumstances surrounding it. What we have heard from the president and members of the administration and frommstantial evidence investigators on the scene and International Investigators looking into the scene. According to american intelligence officials, they believe that the damage is consistent. The damage they have seen is consistent with a surfacetoair missile. Not the kind of damage you would sustain from an air to air missile from another plane. They to techident to the Missile Launch and the ukrainians had no missiles in the vicinity. That could have taken out this plane. American intelligence officials talking for the first time providing details on the intelligence surrounding the downing of mh 17. More details on the circumstantial case. This week bill ackman said he would reveal enronlike fraud at herbalife. He billed it as the most important presentation of his career. He focused on the nutrition clubs. His presentation seemed to fail to really influence the market or convince investors of fraud at herbalife. The stock gained 25 during the day. Stephanie ruhle is here with more. Said it will be an epic takedown. He compared the big reveal today to something similar to what we saw from enron. That may be the case six months from now when the ftc takes his case and looks at this but today , stocks of 25 . Many people are saying it was an apt take epic takedown, maybe it was an epic fail. To the chance to speak cfo. He had a long day and it seems he has gotten more relaxed as the day went on. I had to say what did you two to what did you do to bill ackman . Sue him. Not heres what he said. It is an option. I think your case gets stronger every day. What stopped you between when this started 18 months ago to today, with everything that he says, why not stop him with a lawsuit . We may. The stocks performed well and the company has performed well. It is something that we sent about frequently and i will leave it to the lawyers. It is a possibility. It, if have talked about youre the cfo of that company he is spinning the majority of his time defending himself against bill ackman, why would you not sue him . May they maybe they do not want to face discovery. They have to air their dirty want toand they may not do that. What about the idea that they can sue bill ackman for defamation of character . That is what i am saying they ,ould or should sue them for for slanderous remarks. They are considering it. You have to wonder why they have not. Maybe because they didnt want to put themselves out there where billed the well have the chance to ask questions. This is an extra ordinary story that does not seem to want to end. While bill may not prove in the company is illegal, there are more out there saying it is a notzy business but it might mean illegal. Is there any chance that carl icahn and those that were backing herbalife will not respond . Who knows. It is being done in public. One singlenot seen other bigtime investor from the minute bill ackman did this presentation a year and a half ago to today. Not one other name investor has also gone short herbalife. It is interesting, is a full realy tv, almost the hedge and Fund Managers. Hedge Fund Managers are struggling. Why is no one else on his side . And the stock goes up 25 . Thank you. Coming up, turning the traditional fleamarket into a hub of economic realm and. Food vendors, craftsman, and the cofounders. Twisted sisters friend mandy snyder working on a unique shakespearean production using puppets. We will find out more next on taking stock. This is taking stock on lumber. Bloomberg. I am pimm fox. Brooklyn fleet is a juggernaut. Thanks for being here. Brooklyn flea different from other flea markets . Towe realized up front that make Something Special we would have to curate the section selection of vendors. When we announced in the fall of had withinblog, we 48 hours 100 vendors respond. E knew we were onto something we had hundreds and hundreds of vendors applying for the launch create launch. And figureok through out what was best and limit the number of vendors in each category and try to create this perfect balance. That was a novel approach. In the center be of the creative world so we had all the stuff to pick from. Described the logistical challenges of putting on a fleamarket. Fleamarketnot junior operators. We had not assisted anyone who had run a fleamarket. We had started froms catch from scratch. We had gone to college. Did anyone think you were crazy doing this . I had a perfectly nice career as a journalist and speechwriter and consulting and thats her thing. That was the straw. My mother and family all raised in brooklyn not far from where i live now. Jonathan was born and raised in new york. I was writing speeches for the world president borough president of brooklyn. We had this early since im a if you go back to the followed 2007, brooklyn was not an international brand. We had an intuitive sense that spacecould be a gathering going on and we had some sticks on the ground and cones and pylons all over the yard. We went through a lot of iterations of how to organize the market. Now we are a more of a well oiled sheen. You also have a lot of participation. Give us an idea of the scale. 300 vendors in the regular rotation. We have a food market that we launched in 2011. The other fortuitous decision we made early on is to include food in the beginning in 2008 and the food became probably the most popular piece of the fleamarket in some ways and we spun it off in 2011. If you include the food vendors and fleamarket vendors we have 300 on any given weekend. Almost all of whom are local and making stuff. You have people who are dying to go. Thank you very much. This is taking stock on bloomberg. I am pimm fox. Tituseares is being performed. Joining me is dee snyder. He is here with his son shane s nider who has one of the puppets in the production. Ofs begin with the idea doing shakespeare. How did you be connected with broadway and this particular shakespearean plany . A standup comic and he was asked to join this troupe and it gave him a chance to use his techniques and comedy. Lovee shakespeare and i puppet shakespeare. Fourth wall and almost explain what is going on. A lot of it gets lost for some of us. Explain what titus and run because andronicus is about. It is kill bill meets sesame street. Goths lost 21 sons to the andsacrifices the queen ruins everyones lives. What is more metal than this . Are actually harmed in the presentation of this play. They come back the next night. They are all acting. There is puppet gore. We are trying to turn it on its head. Will laugh at death well having the time of your life. I like that dark sense of humor. We are trying to look at it in a whole new way. Were when you you were young person that you had the chance to see shakespeare performed by puppets. Is this something that would have attracted you to play war of those kinds of roles on broadway . One of the visions we have for you but shakespeare is that if this thing works, we could apply this to any of shakespeares plays. Titus andruppet onicus, six months later we juliet. Romeo and we could send troops to schools but for high school kids, open their eyes to shakespeare and the value by showing you through the puppets and they do explain it a little clearer what the shakespearean language does. There is something with shakespeare, there is a stigma of these days. Certain people have expectations of shakespeare that we are trying to undermine. Were trying to approach it differently. You want to create something that is less formal and less structured and more conversational and anecdotal. Which they were originally. Peopleny cases where would enjoy themselves. People would come and go. There was music and eating. It was not highbrow come a it was for everybody. And the puppets bring the shakespearean action down to earth and open it up. Dad do not think for a second this is a kids show. As far as the business end of all this, is it expensive to put on a production . Thankfully, our overhead is pretty chie cheap. One of the things that we help build our brand is branded characters. And brings down costs shakespeare was built on a very minimalist structure. It is one set, one stage. We do not have a lot of overhead. Theater today is very expensive. They say it is not big budget putthere is an angel who six figures into this off budget production. For them it is a lot of money. Nothing by regular broadway standards. A lot of producers coming down and critics and hopefully we broadway this to proper. It is also home to jersey boys. About twisted sister, any chance this will come to broadway . Musical and holiday chicagounching in november 4. It is the story of a struggling heavy metal band who sell their soul to the devil and find the magic of christmas instead. Might it be performed by puppets in the future . Maybe. Of yourwould a puppet father look like . I think i was a puppet. Sweetumsld look like from the muppets. Like me whichok is bizarre. See the resemblance . Especially in the eyes. They do have a musical element but it is not traditionally a Musical Forum of shakespeare. This is my son and this is his passion and his creativity. My wife and i are supportive of all our children whatever their passion is. Said i do daughter not want to sing in a band, i want to get my masters in business and i said go for it. Shes aid she said, really and i said whatever i too happy. This is what makes them happy. I am making appearances with puppets. Something i wouldve punched you if you said this to you 30 years ago. And want to thank you very much. Of puppetane snider shakespeare. I will talk to the chief executive and the owner of [inaudible] this is taking stock. I am pimm fox. Seen those food carts with long lines of people waiting you have seen the halal guys. Are looking to expand nationally and internationally. Theave hesham hegazy, general manager. Thanks for being here. Lets start off by talking about uys came to be. Guys came to be in 1990. In 1990 was a similar hotdog cart. Fore was so much demand doing the [inaudible] there they were always asking, they have to eat halal cost ahere was a question of what we could get whole all males halal meals. There was a huge need for halal food to be around. Halal . Makes food this is a good question. Theake sure that all showeromes out of the the chicken. Halal it is ups to us how to cook it and prepared. Where are you in terms of the scale of the business . So far we have five locations. The main one which is the one across the hilton. Always a long line. Thererst one which is until 5 30. The line is longer than daytime. Is across one which the street from 6th avenue. We have the southeast corner which is day and night and we have won by 7th avenue and 53rd street. They are all over midtown. Tell us about the restaurant. You decided to go from the card to having restaurants. It is not just overnight. Our customer is being demanding for years for us to open up indoors where they could sit and enjoy. The atmosphere people come from all over and we were waiting for the right time to make the right move. Timese to approach many and many years with a Franchise Development approaching us. Will that happen now . If you go back to the New York Times june 15, there was a great article. In the International Franchise on june 19. Franchising. Thank you. Hesham hegazy is the general manager of the halal guys. Food earnings to talk about. The restaurant chain saw store sales fall 1. 5 . As 2. 5 . As much the biggest intraday drop in a year. The Worlds Largest average Company Reported secondquarter sales that missed analyst estimates. Seeing sluggish demand for drinks such as jews and diet coke in north america. Electronic arts reported earnings that beat analyst estimates. The company delayed the release of battlefield hardline until next year. That game was expected to be a major holiday title this season. We had J