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 earl