Two other men who escaped from prison are still at large. A woman who taught english to one of the inmates has been booked as an accessory. Police say she gave prisoners maps of the jail complex. Michigan Governor Snyder is giving another 28 million in emergency aid for flints leadtainted water crisis. Officials may have known about the tainted water long before they acknowledged it. Workers were often offered bottled water. Residents were not told the water was unsafe until last fall. Global news 24 hours a day on bloomberg. Im emily chang and this is bloomberg west. Is apple going wireless . The companys plan to make phones that can charge without a cable insight. Ibm seals its deal with the weather channel. It has been another week of monster stock swings, which means a lot of executive fortunes in flux. The biggest risers and followers, we will ask our billionaires team. First, to our lead. Wall street is feeling woozy after a volatile week in tech earnings. Investors seem to be particularly nc this quarter given the rocky economic climate we have seen in 2016. How long can big tex deliver on shareholders inflated expectations. Cory johnson is live in the studio, and Paul Kedrosky joining us from san diego. Thank you for joining us on the wild week that was. Corey, i want to start up with apple versus alphabet. A year ago apples market cap was six under 93 billion dollars. Google, 300 47 billion. Today they are separated by a mere 24 billion. Cory projections of growth for apple is imagination of what apple can do next. This year really prove that 1 growth in iphone sales really showed the limitations of growth and the ve garritys vagary of the product cycle the are responding to. You used to be able to really try out the product cycle as they added geography later and later into the 24 month product cycle. It is much more front and loaded end loaded. Emily alphabet earnings coming out on monday, and its the first time that alphabet will break out the nongoogle businesses. How much does it cost to run google x, for example. We could be in for some real surprises. What are you expecting to happen on monday . Paul im expecting this to be a messy one. I give him credit and we have talked about this for pulling out all the different pieces that make up this monstrosity of all the different pieces of companies. Its going to catch some people by surprise, there will almost certainly be something in there that makes people nervous. Its much less likely that they find something inside. It turns out google glass still exists. I think its going to be a volatile release. Emily amazon is a company that saw the biggest moves, they are still spending, still not really turning much of a profit. The Cloud Business is going well. What stuck out to you, cory . Cory Amazon Web Services is changing the way so Many Companies work. The results we saw from amazon this week, it pushed the stock down to levels all the way back to last wednesday. The profitability for amazon is interesting. It is only 3 operating profits. I think that nonetheless it shows that they will continue to run this business to be just profitable enough to generate boatloads of free capital they can reinvest in things and invent things like Amazon Web Services. It is a fantastic business for amazon, but transforming the way the world computes. Emily microsoft and facebook had a killer week. What do you make of these major shifts that seem to be happening . Is this short or longterm . Paul so, i hate hedging answers, but i will be forced a little bit. Apple, this is a Company Specific issue. This air pocket with respect to product release, and the difficulty of forcing people to upgrade in lockstep to both microsoft and amazon getting pushed higher, and facebook to a degree on what is happening with respect to migration to cloud. Thats probably the most important transition in this recent technology era. Microsoft somehow has no business existing at this point. The Cloud Business is growing so quickly, it is saving microsoft in many ways. The cloud is hugely important and apples product deficiencies are equally important. Emily did investors just realize the cloud is a big deal . Cory both of these investors at microsoft, azure emily i call it azure. Cory its such a big deal. I went to the Amazon Web Services conference three or four years ago. Its a big business, and you can see it coming. The notion that everyone from the cia to netflix to uber are running their businesses through Amazon Web Services shows you how important their web services are. Paul . Paul 9 billion run raid. These are big numbers. Cory microsoft business is growing 100 yearoveryear growth. The real impact is not just that a lot of this stuff is moving to the cloud. You see i. T. Spending the impact of Amazon Web Services is not amazon beating microsoft or microsoft beating google. It is amazon and microsoft and google through their offerings in the crowd are crushing hewlettpackard, ibm, sun oracle certainly challenge there. You look at what happened to xerox today. That is all about the companies that dont need to hire for services anymore, that dont need to buy tons of hardware anymore. It has all changed. Emily of apple, alphabet, amazon, microsoft and facebook, which stock is the one this year . Paul it has to be google. They are so dominant in so many categories and eager to be dominant in more. Amazon is going to continue to see this earnings day volatility. Apple is a sadder story. Emily Paul Kedrosky, cory johnson, thank you both. There is more bad news for the daily Fantasy Sports industry. According to the new york times, the company that handles a significant portion of transactions for fan duel and draft kings says it will quote, suspend all processing for Payment Transactions related to Fantasy Sports in the u. S. On february 29. According to documents, a representative says the arguments made by daily Fantasy Sports operators have been unsuccessful and rejected. Coming up, from whether to watson, ibms famous a. I. Is another boss. Plus, my exclusive conversation with the e. A. Ceo. Emily ibms board is sending a message to the ceo, get that share price up. As part of 2016 compensation, remedy will get 1. 5 million premium price Stock Options in three years. This is the first time shes getting Something Like that since becoming ceo in 2012. Ibm shares hit a low last week after posting sales that declined for a 15th straight quarter. For 2015, rometty received a 4. 5 million bonus payout. Staying with ibm, the company officially closing its acquisition of the Weather Company. Ibm bought the Weather Company in october for an undisclosed amount. Some reports that a price tag north of 2 billion on the deal. Now ibm has named the former Weather Company ceo as new chief of its famous cognitive computing platform, watson. He joins us for more on his new role. Thank you for joining us. Great to have you back here on the show. What has Ginni Rometty told you that she wants out of you and why is she putting you in this position . Guest when ginni offered me this role, she was pretty clear that she wants me to take a great business in watson and make it more of a platform, as they did with whether. She very much wants to make sure that we have watson a platform that can be used for businesses of all sizes, big or small, everywhere in the world. Im going to focus on making that happen. Emily whats it has been criticized for not being more than a science project, not something driving meaningful revenue for the company. How do you respond to that and how do you fix that . David first of all, its not true. It is generating significant revenue as significant profit, and i know that running it. Emily how much . David we are not going to disclose that. What we will focus on is how to make it bigger from here by continuing to make it available as a platform so its not only working on the really large projects it works on today, but all sorts of decisions with all sorts of businesses. Emily is the previous head of watson reporting to you . What will you do differently than he did . David a senior guy at ibm, hes a colleague of mine. Just as we built the Health Business led by the i. T. Business, we expect we will build other business on top of this platform, and mike will focus on how we actually do that, what those businesses are and what combinations of investments are needed to build those. It supports those businesses as well as a number of others, as well as third parties. I will be building a platform that everyone in watson can build on. Emily what are your Top Priorities . David my First Priority is to make sure the great things we do today for some of our best clients become repeatable, products you can buy. Im also going to focus on the interface, making sure we have the right code so developers to our building businesses that depend on cognitive computing, Artificial Intelligence can easily use this. Theres already 500 such businesses but we wanted to be many multiples of that, and to focus on serving them and building up the entire watson universe. Emily there are lots of questions about ibms longterm future. As a former ceo yourself, how would you assess Ginni Romettys leadership . David i think ginni is doing an outstanding job with an interesting hand. Since she came in she has been making tough decisions. I think she has been working to build the team to do that. Im thrilled by some of my new colleagues, both traditional ibmers and new people. Shes going to build a good team and together we will continue to grow ibm and i think she will lead us all their. Emily what do you think is the future of ibm . What is the solution to ending quarters of declining revenue . David and a business in transition needs to focus on its growth, whether it be cloud or security or watson. I find the investment in a turnaround on those areas, areas that may be not growing as much are going to get focused and other ways. Ibm has a long history. It has gone through transitions before and im excited to be coming in at this phase to show upside from here. Its about transitioning to the next platform. Cognitive is going to change computing again and ibm has a clear leadership position on that. Emily ibm watsons new general manager, david kenny. Thank you for stopping by. James murdoch is back. Hes returning as chairman of sky, four years after a highprofile hacking scandal drove him out of the paytv company. Last year, james replaced Rupert Murdoch as ceo of 21st century fox, which owns 39 of sky. Coming up, sick of all those wires tangling up your iphone . It sounds like tim cook is too. What he plans to do about it, next. Emily u. S. Stocks close out january with a day of gains after the worst start to the year since 2009. Ramy inocencio has the wrap of new york. Ramy for the week it was a nailbiter. In the last 15 minutes of the trade, closing well above 4600. The s p and dow also ended at session highs, the dow seeing its best day since september. Bankshares were to thank for the rally. Big names saw some big gains, microsofts secondquarter profit Beat Estimates on growing business in the cloud, with azure and office 365. The ceo says more than 70 of fortune 500 companies now use at least two microsoft cloud services. But amazon fell because of rising spending costs, as much as 15 . Jeff bezos is ramping up spending, including for faster shipping and its first super bowl ad. A report out shows pc sales fell below the 300 million unit mark in 2015, its lowest since 2008. Over to apple, a close as a session high after news that the Company Might release a wirelessly charging phone as early as 2017, and for facebook, it hit a record high today, shares continuing to go gangbusters after posting another quarter of record revenue and profits this week. Shares of the social network have rallied 52 in the last 52 weeks. Emily could the worlds Biggest Social Network they looking to get into the ridesharing business . In a Patent Application published today, faust book outline plans to become a ridesharing platform. The company showed how people could form carpools through their events feature. It is an interesting development, especially considering the recent partnership between facebook and uber. Speaking of patents, apple could be preparing to go wireless. As ramy just mentioned, the company is working with partners in the u. S. And asia to develop new Wireless Charging technology that can be used on its mobile devices as soon as next year. The Cutting Edge Technology would allow iphones and ipads r bloomberg reporter who covers apple for us how does this Technology Work . Reporter wireless signals enable you to charge your battery without having to put it in tether. This is a bit far off and there are some technical barriers apple has been running into, and other companies have already introduced some of this technology. Apple is playing a bit of catchup. This is something that will not be happening with the next model of the phone, but a bit further out. Emily in 2010 apple saw the pageant with this concept of using a mac as a hub for Wireless Charging. Is that what were talking about here . Reporter apple files a lot of patents. That could be a direction they could go. In that case, your mac laptop or desktop is the energy hub for your phone. Theres a lot of different capabilities out there, there are things like a map they have placed on other products as well. Emily theres been rumors for a while with apple that they want to get rid of headphone jacks. Do you know if thats true, if they want to make it totally Wireless Phone . Reporter things have been going in that direction for some time and they have shown us they have no qualms about making a dramatic change like that. A while back they change the jack at the bottom for how you charge the phone, which caused an uproar because it required people to change the accessories they had, but there are a lot of different changes they can make. These are incremental changes they have been making to the device. The question a lot of investors are asking around the company and why you are seeing the stock falling of late is, what is something really big thats going to happen that will drive more people to buy the iphone . Sales of the handset have been tapering off and that is why you see the stock coming down. Emily i want to talk about Virtual Reality. Tim cook, for the very first time, made comments about Virtual Reality. Take a listen to what tim cook had to say. In terms of Virtual Reality, i dont think its the niche. Its really cool and has some interesting applications. Emily apple is building a secret team of hundreds of people who are working on Virtual Reality. What do we know about this, adam . Adam you can hear the hemming and hawing in tim cooks voice. I have people working on this at their desk right now but i cant tell anybody about it. The Financial Times had a good scoop about how apple has been amassing a lot of employees to work on an effort to do their own Virtual Reality. This is something a lot of companies are doing. Htc, sony, samsung this is an area of intense interest among a lot of electronics companies. The question for apple will be how will what you do be any different from anything else out there. Emily apparently apple experimented with Virtual Reality in 2000 under steve jobs. How is this time different . Adam one thing ive learned about apple is they become incredibly focused on the thing they are doing. At this moment in time in their history is when they were in Major Development of the iphone. Now theyre looking for what their next big product is going to be. Theres rumors about a car, but that takes a long time to get through development. Virtual reality can be another stream they pull on. These are Different Things you can see behind the scenes, when they are setting the foundation for different product that they might be able to release. Emily thank you very much grade when we return, how do two proenvironment billionaires and up on different sides of the fight for solar energy in nevada . Emily welcome back to bloomberg west. Im emily chang. Facebook stealing the show after a record quarter on wednesday. Stocks surged in thursday trading and still riding high. The market sent apple tumbling after admitting it is seeing some softness in china and amazon sliding after missing on sales and profit. Behind all these companies are ceos with a lot of skin in the game. Joining me is tom metcalf. Lets start with the biggest riser this week, up 6 billion. Tom its been a volatile week for him. He started aids in the world and he has overtaken the 8th in the world and he has overtaken the koch brothers. Emily hes the only tech guy up here to date. Tom exactly. He was well down before this week. Investors are sort of buying Facebook Like crazy on one hand and selling like crazy. Emily amazon down 733 million this week, down 8. 8 billion today. Tom the interesting thing, he started out during the week he started up but when the actual results came out, it really disappointed. This questionnaire, maybe this is a company where they need to manage those expectations a bit bette