Microsoft's Ballmer Should Be Let Go: Thompson

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July 19 (Bloomberg) -- Bloomberg's Nick Thompson and Paul Kedrosky explain the reasons behind the latest earnings results to Trish Regan and Adam Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

It was one after another.

One, 2, 3, 4. what we are seeing the tech industry grappling.

The transition to mobile is the biggest change.

Microsoft is desperate to get into mobile.

They put everything onto surface tablets and bomb.

Microsoft has a lot of problems.

They are reorganizing.

They need to start looking for an exit for mr.

Balmer.

This is a company that has had 10 years with a big initiative in the fall.

We have just had a redo, they are moving to 8.1. the xbox one, people are happy with that in certain quarters.

A new leadership is your call.

That is my call.

Balmer is out.

Paul, what is it for next week?

We have more tech companies reporting.

Are we going to see more of the same mrs.? yes.

I would say there are at least two things going on.

One of them is arguably even more important than the mobile transition.

There is a chart showing the dependence of s&p 500 companies by sector on china.

Tech is far and away the most china dependent sector in the s&p 500. it is really astonishing with companies like ibm, microsoft, and others doing some intel on the top line.

In a sense what you are seeing here is a double whammy.

It is made much worse with the slowdown in china.

This is even larger than what is happening in mobile's transition.

It has a lot to do with the fundamentals of one of the largest markets.

There is no way to escape this unless you are somehow one of the new generation tech companies am a witch is mostly mid-cap companies.

Does that mean we need to bring it back right here to the united states and look at companies that are helping people figure out how to buy stuff on their cell phones?

That is right.

That is exactly right.

That is the stuff that is less leverage in the marketplace.

You are going to have far less swing.

We unfortunately have to leave it there.

We are going to be watching tech

This text has been automatically generated. It may not be 100% accurate.

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