Bill Gates is gone. Microsoft is now officially Satya Nadella's "Bill's helping."!

In case there was any doubt, the Satya Nadella era has arrived at Microsoft.

Nadella announced Thursday that Microsoft (MSFT, Tech30) will cut 18,000 jobs within the next year, part of his push to slim down the company and narrow its focus.
Analysts see this strategy shift as long-overdue. Microsoft dominated the tech industry when Nadella's predecessor, Steve Ballmer, took over from founder Bill Gates in 2000. But in the years since, Microsoft has sputtered.

Microsoft under Ballmer had been slow to respond to innovations from rivals like Apple (AAPL, Tech30) andGoogle (GOOG). It launched a series of poorly conceived devices and two poorly received versions of Windows. Observers questioned Microsoft's direction.

The layoffs Microsoft announced Thursday "speak to Nadella's attempt at cleaning up part of the mess that Ballmer left behind," analysts at FBR Capital Markets wrote in a research note.

The house-cleaning also proves that Microsoft is now officially Nadella's company.

Industry observers often suspected that Gates retained ultimate authority at Microsoft during Ballmer's rocky tenure. Nadella has left the issue unambiguous. The company announced that Gates would step down as chairman on the same day Nadella's hiring was made public.

"I run the place," Nadella said at a conference in May. "Bill's helping."

Russian hackers placed 'digital bomb' in Nasdaq - report

  

Russian hackers managed to slip a "digital bomb" into the Nasdaq -- one with the potential to sabotage the stock market's computers and wreak havoc on the U.S. economy.

That's according to an investigative report by Bloomberg Businessweek, which revealed the Although it had been reported previously that hackers had snooped around the Nasdaq's computer network, specific information about the attack had remained secret until this week.

Hackers broke into Nasdaq's network four years ago with custom-made malware that had the potential to spy and steal data. But it could also cause digital destruction, potentially disrupting Nasdaq's computer system.

It's still unclear who the attackers were. A federal official briefed on the investigation said the FBI has not developed enough evidence to conclude a foreign government was responsible behind the hack.details of a 2010 cybergrenade that never detonated.

Google's money machine is going strong

Hey, turns out this "Google" craze might be here to stay.

Google (GOOGL, Tech30) reported another quarter of surging sales growth Thursday, with revenue rising 22% versus last year. The news sent the stock rising 1.6% in after-hours trading.

The challenge for Google in the past few quarters has been convincing marketers to pay as much for mobile ads as they do for desktop ads, a task that's become increasingly pressing as Web usage shifts to smartphones.

Part of the way Google is addressing this issue is through the "enhanced campaign" strategy it introduced last year, which requires advertisers to buy across multiple platforms.

Google said marketers paid 6% less per ad in the second quarter compared with last year, but ad viewing rose 25%, giving the company strong revenue growth. Google held a whopping 68% share of the U.S. search market as of May, according to comScore.

Social Media Firms 'May Be Overvalued'

By Sky News US Team

The Federal Reserve has warned that social media stocks could be overvalued, in comments which rattled tech shares.

In a rare singling out of a specific industry group, the US central bank said signs of risk-taking had increased and valuations appeared "high relative to historical norms".

The report said: "Valuation metrics in some sectors do appear substantially stretched - particularly those for smaller firms in the social media and biotechnology industries, despite a notable downturn in equity prices for such firms early in the year."

Shares in Yelp, Facebook and LinkedIn dipped after Tuesday's report.

Shares in Yelp, Facebook and LinkedIn fell

The last time the Fed singled out a particular equity sector was 14 years ago as the dotcom bubble was bursting.

Its monetary policy report in July 2000 sounded the alarm on "lofty valuations" in technology shares.

Tuesday's report was released as part of Fed Chair Janet Yellen's semi-annual testimony to Congress. 

She played down talk of a stock market bubble as she addressed the Senate Banking Committee.

The Dow Jones and S&P 500 have soared to record highs this year, but Ms Yellen said that "prices of real estate, equities and corporate bonds ... remain generally in line with historical norms". 

The Dow Jones and S&P 500 have hit record highs this year

She also said the US economic recovery was incomplete and the Fed would continue its stimulus efforts.

Legal Downloads Drive To Stamp Out Piracy

Entertainment companies, broadband providers and the Government have teamed up for a major campaign to persuade UK consumers to use only legal download sites.

The Creative Content UK campaign has today announced it will provide £3.5m to help with an education awareness drive launching early next year.

It will be aimed at all potential online users, advising about trustworthy sources and giving guidance on internet safety.

Another element of the scheme will see some internet providers advising customers if their accounts are thought to be being used to access material which infringes copyright and telling them where they can find legal content.

Among those involved are music industry body the BPI, the Motion Picture Association and internet providers such as Sky, BT and Virgin Media.

Culture Secretary Sajid Javid said: "It will play a central role in raising awareness of copyright and pointing people toward legal ways to access content, and I welcome this effort."

Geoff Taylor, the chief executive of the BPI, described the scheme as a "landmark initiative", adding: "It should mark a real step forward for digital entertainment in the UK."

Creative industries are estimated to contribute £71.4bn towards the UK economy.

In 2012, annual digital sales of music, video and games broke through the £1bn barrier for the first time.

Business Secretary Vince Cable said: "Education is at the heart of this drive so people understand that piracy isn't a victimless crime - but actually causes business to fail, harms the industry and costs jobs."

Microsoft's Bing Starts Removing Search Results

Microsoft has launched an online request form

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Got a shady past that you have managed to erase from Google's search results?

That hasn't stopped people from looking up your big secret on Microsoft's search rival Bing - until now.

The company has launched a web form where requests for search removals can be filed, allowing individuals to request that Bing stop providing links to certain web pages.

The form asks for the requester's full name, country of residence, proof of identity, and a contact email.

Users are then asked whether they are a public figure (defined as "politician, celebrity, etc") and whether their role involves leadership trust or safety ("for example teacher, clergy, community leader, police, doctor, etc").

Google has been vocal in its opposition to the ruling

After that, the requester is asked to enter the page they wish to have blocked and the reasons why.

The form is more detailed than that of Google, which began taking requests for takedowns in May.

It understood to have received around 70,000 requests since then.

The move by the search giants was triggered by a European court's privacy ruling, saying people have the right to be forgotten.

Google has been outspoken in its opposition to the ruling, while Microsoft has stayed quiet.

Last month the first batch of Google links was removed.

They included stories relating to a now-retired Scottish Premier League referee called Dougie McDonald who resigned following controversy over a penalty he awarded in a Celtic game.

Details of a solicitor's 2002 fraud trial have also been scrubbed, along with articles relating to a couple caught having sex on a train and a Muslim man who accused an airline of refusing to employ him because of his face.

BBC economics editor Robert Peston had a blog post removed in which he wrote about Stan O'Neal, the former boss of the investment bank Merrill Lynch

FedEx Denies Illegal Drug Delivery Charges

Delivery giant FedEx has denied a United States Department of Justice (DoJ) charge that it has transported illegal drugs for customers.

The company said it is innocent of charges that it "knowingly and intentionally conspired to distribute" controlled substances and prescription drugs sold by illegal online pharmacies.

The firm said it would "plead not guilty" to the indictment and "defend the integrity and good name of its employees".

Authorities said they had warned FedEX in 2004 that its shipping services were being used by illegal online pharmacies.

Throughout a nine-year investigation, the DoJ said it had found evidence of claims that some company employees in three states had previously voiced concerns.

It said employees in Kentucky, Tennessee and Virginia had expressed safety issues to senior management.

These included complaints that trucks were "stopped on the road by online pharmacy customers demanding packages of pills".

Microsoft Cuts 18,000 Jobs In Nokia Cull

Microsoft has confirmed plans to "eliminate" up to 18,000 jobs worldwide as part of efforts to simplify the company's operations and cut costs.

The announcement was made in an email to staff entitled 'Starting to Evolve Our Organization and Culture' by new chief executive Satya Nadella, who is moving to reshape Microsoft into a cloud-computing and mobile-friendly software company.

The $7.2bn (£4.2bn) purchase of Nokia's mobile division - which is being integrated into Microsoft - was to account for the majority of the losses, Mr Nadella said, as overlaps were identified.

The deal, completed in April, added 28,000 positions to Microsoft's payroll.

The company, which now employs 127,104 people globally, has 3,500 staff in the UK but no announcement was made on exactly where the cuts would be made, apart from identifying 1,300 losses in Seattle.

It estimated costs of up to $1.6bn (£1bn) initially before any savings would be felt.

Mr Nadella told staff: "The first step to building the right organisation for our ambitions is to realign our workforce.

"With this in mind, we will begin to reduce the size of our overall workforce by up to 18,000 jobs in the next year.

"Of that total, our work toward synergies and strategic alignment on Nokia Devices and Services is expected to account for about 12,500 jobs, comprising both professional and factory workers.

Malaysia Airlines Offers Passenger Refunds

            

Malaysia Airlines is to refund fares for passengers no longer wishing to travel on the carrier, Sky News has confirmed.

Previously booked passengers due to fly up to and including July 25 can seek a refund without incurring any penalty.

The decision comes amid a wave of concern following the downing of MH17 over eastern Ukraine.

It is unclear how many passengers will cancel their flights.

Nevertheless, the refund will further harm the perception of the carrier both for passengers and investors.

Shares in Malaysia Airlines closed down more than 10% on Friday.

The Kuala Lumpur-listed company saw its stock fall more than 17% at one point before easing prior to the market close.

"Perception-wise it really hits home - It's very challenging. It's very difficult to fight against negative perception," Maybank aviation analyst Mohshin Aziz said.

"I can't comprehend of anything they can do to save themselves."

Forbes Media sold to Chinese group Integrated Whale

After 97 years of family ownership, Forbes Media has announced it has sold a majority stake in the company to a Hong Kong-based group of international investors.

Forbes Media - which includes Forbes magazine - was sold to Integrated Whale Media Investments for an undisclosed sum.

The Forbes family said it would still have a "significant" stake.

Steve Forbes will remain as chairman and editor-in-chief.

"While today marks a fundamental turning point in this 97-year-old company founded by my grandfather, it should be seen as an opportunity to continue and strengthen our mission," said Mr Forbes in a blog postannouncing the sale.

Forbes - which says it reaches 75 million people worldwide every month through its print, digital, TV, conferences and research ventures - began looking for a buyer last November.

Forbes will continue to be headquartered in the US, but announced plans for an international expansion.

Malaysia Airlines faces doubtful future

Shares in Malaysia Airlines closed down 11% in Malaysia following the crash of flight MH17 in Ukraine en route from Amsterdam to Kuala Lumpur.

Some Asian stock markets also ended the day lower on fears the crash may intensify political tensions between the West, Ukraine and Russia.

This is the second catastrophe to hit the Malaysian airline this year after flight MH370 disappeared in March.

Questions are being asked about whether the carrier can now survive.

"Even if this is pure coincidence, it's never happened in history that a flag carrier has seen two wide-body aircraft disappearing in a few months," said Bertrand Grabowski, head of aviation at DVB Bank, which acts as a banker to Malaysia Airlines.

"The support from the government needs to be more explicit and perhaps more massive."

Apple scolded by Europe over in-app purchase protections

Apple has been criticised by the European Commission for not offering any "concrete and immediate" plans to stop users being misled by "free" apps.

Many popular apps are free to download, but are designed to tempt users to pay for in-game enhancements - often allowing for quicker progression.

The Commission is now forcing Apple and Google, the biggest vendors of apps, to make the "true cost" of games clear.

But it singled out Apple for not making a commitment to change.

Casinos beat the banker: Macau leapfrogs Switzerland in wealth chart!

Macau, the world's biggest casino hub, has overtaken Switzerland in the wealth stakes, being named the world's fourth richest territory by the World Bank.

A new batch of data released by the World Bank showed the former Portuguese colony's GDP per person grew to $91,376 in 2013, compared to $77,196 in 2012.Only Luxembourg, Norway and Qatar are wealthier, according to the World Bank.

Meanwhile, Swiss per capita GDP stayed nearly flat at $80,528 in 2013 compared to $78,929 the year before.That's the good business news from Macau.

The bad news is that its casino industry's revenues have declined for the first time in nearly five years, as gamblers turn their attention to the World Cup.

10 things to know before visiting Macau

The former Portuguese colony made $3.4 billion from gambling in June, 3.7% less than in June last year and down 18% month-on-month.

Macau is the world's top spot for the gambling industry, reporting a staggering $45 billion in gambling revenues last year -- nearly seven times the $6.5 billion that casinos in Las Vegas made during the same period.

Official complaint filed over Facebook emotion study

An official complaint has been filed to the US Federal Trade Commission about a Facebook experiment that manipulated the emotional state of users.

The study was carried out for one week in 2012 and targeted almost 700,000 users by varying the personalised content sent to their Facebook pages.

The complaint was filed by digital rights group the Electronic Privacy Information Center (Epic).

Facebook said it had no comment to make about the complaint.

Russian MPs back law on internet data storage

Russia's lower house of parliament has passed a law requiring internet companies to store Russian citizens' personal data inside the country.

The Kremlin says the move is for data protection but critics fear it is aimed at muzzling social networks like Twitter and Facebook.

The Russian government is thought to be seeking greater access to user data.

Social networks were widely used by protesters opposing President Vladimir Putin's return to the Kremlin in 2012.

Analysts say there are fears that Russia may be seeking to create a closed and censored version of the internet within its borders.

The new bill must still be approved by the upper chamber and President Putin before it becomes law.

If passed, the new rules will not take effect until September 2016 but will give the government grounds to block sites that do not comply.

"The aim of this law is to create... (another) quasi-legal pretext to close Facebook, Twitter, YouTube and all other services," internet expert and blogger Anton Nossik told Reuters news agency.

"The ultimate goal is to shut mouths, enforce censorship in the country and shape a situation where internet business would not be able to exist and function properly."

But introducing the bill to parliament, MP Vadim Dengin said "most Russians don't want their data to leave Russia for the United States, where it can be hacked and given to criminals".

"Our entire lives are stored over there," he said, adding that companies should build data centres within Russia.

German Chancellor Angela Merkel begins China visit

German Chancellor Angela Merkel is beginning a three-day visit to China with trade issues high on the agenda.

The countries are important trading partners and Mrs Merkel is travelling with a large delegation of German business executives.

On Sunday she is visiting Chengdu, capital of south-western Sichuan province, where more than 150 German companies are active.

The visit is Mrs Merkel's seventh to China since taking office in 2005.

She will also hold talks with Premier Li Keqiang and President Xi Jinping.

BBC Berlin correspondent Stephen Evans says the Chinese market is important for Germany while China is looking to Germany as the supplier of machinery and cars for its rising middle class.

In the past, the chancellor has spoken out against human rights abuses in China but it is not clear if she will voice her disapproval this time, he says.

At a joint business council in Beijing, the German delegation is expected to address sticking points such as fair market access for foreign companies and respect for intellectual property rights.

In an article in Welt am Sonntag, German intelligence chief Hans-Georg Maassen warned that small and medium-sized German firms were at risk of industrial espionage from Chinese government agencies.

"They are up against very powerful adversaries. The Chinese technical intelligence agency alone has over 100,000 employees," Mr Maassen said in an excerpt of an interview to be published on Sunday.

China is Germany's second largest export market outside Europe after the US.

It sold goods worth 67bn euros (£53bn; $91bn) to China last year, while imports from China topped 73bn euros.

US economy adds 288,000 jobs in June

The US economy added 288,000 jobs in June, latest figures from the Bureau of Labor Statistics have shown.

The unemployment rate dropped to 6.1%, its lowest level since September 2008.

That figure beat analysts' expectations and is an encouraging sign after disappointing growth in the first quarter of 2014.

The strong report sent the Dow Jones Industrial Average above 17,000 for the first time as investors cheered the news.

Economists blamed harsh winter weather for a 2.9% annualised decline in US economic output from January to March.

Jobs growth in professional and business services was particularly strong, with 67,000 jobs being created, followed by gains in the retail sector, which added 40,000 jobs.

Google Starts Erasing Disputed Search Results

A Sky News article on Kelly Osbourne has been removed

Google is deleting some search results at the request of its users, including articles about a controversial top-flight referee and an airline accused of racism.

It follows a European court ruling that individuals have a "right to be forgotten", so "outdated or irrelevant" material about themselves must be erased from search results.

News organisations are now being notified which of their articles are no longer publicly indexed on Google.co.uk - but remain searchable on Google.com.

They include stories relating to a now-retired Scottish Premier League referee called Dougie McDonald who resigned following controversy over a penalty he awarded in a Celtic game.

Details of a solicitor's 2002 fraud trial have also been scrubbed, along with articles relating to a couple caught having sex on a train and a Muslim man who accused an airline of refusing to employ him because of his face.

Poundland Profit Up 23% As EU Expansion Starts

Discount chain Poundland has seen a 23.5% rise in annual underlying pre-tax profit, as it begins expansion plans in Europe.

In the 12 months until the end of March, profit rose to £36.8m, on a revenue rise of 13% to £997m.

However like-for-like sales were subdued in stores opened more than a year, rising by 1.9%.

The gross margin for sales in stores, where all items are priced at £1 or less, was 37%.

In March, the company received a stock market listing in its initial public offering (IPO).

Chief executive Jim McCarthy said: "This was a transformational year for Poundland culminating in our successful IPO in March.

"I am pleased to report that in our maiden set of results we have delivered excellent growth in sales."

Poundland said it intends to more than double the number of stores it owns.

It currently operates 528 stores in the UK and Ireland and said it intends to have more than 1,000 stores in its long-term plan.

It opened 70 new stores across the group territory in the last year.

On July 2 it launched its first store in Spain, at the resort location of Torremolinos.

The Spanish trial of stores branded as Dealz will see an initial 10 stores opened over a two-year period.

Facebook buys video ad technology firm

Facebook has acquired LiveRail - a tech start-up that helps companies place more relevant ads in the videos that appear on their websites and apps.

LiveRail also provides a real-time bidding platform for marketers looking to place ads on online videos.

The firms did not reveal the financial terms, but some reports indicate that Facebook paid between $400m and $500m (£233m and £291m) to buy the firm.

Online video advertising is forecast to grow robustly in the coming years.

European regulators are concerned Facebook may have breached data protection laws!

European regulators are concerned Facebook may have breached data protection laws with a controversial 2012 study that played with the mood of its users.

Officials in the U.K. and Ireland, where Facebook (FB, Tech30) has its European headquarters, are asking questions of the company after details of the experiment were published last month, angering many users.

"We are awaiting a comprehensive response on issues raised," said a spokesperson for the Irish data protection commissioner.

Facebook changed the content mix in the News Feeds of almost 690,000 users to gauge their emotional response to positive or negative posts.

Related: Facebook is 'evil'. Wall Street approves

Experiments are commonplace on the Web. Internet companies routinely conduct tests to improve their business and users' experience.

Facebook's terms of service state that it can use personal data for "analysis, testing, research and service improvement."

But the fact that some users were deliberately made to feel less happy, without their explicit consent, raises questions about the ethics of this particular experiment.

Consent is one area the Irish authorities are investigating. And in the U.K., the Information Commissioner's Office is asking questions about how the research was conducted, a spokesperson said.

The Facebook researcher who designed the experiment has apologized for the anxiety it caused, and questioned whether the findings were worth the hassle.

Call for Google Glass ban in UK cinemas

Google Glass should be banned in UK cinemas, the head of an influential trade body has urged.

Phil Clap, head of the Cinema Exhibitors' Association (CEA), said it wanted the smart glasses removed "whether the film is playing or not".

The CEA has no power to enforce a ban, but instead makes recommendations to most of the country's cinema industry.

Google suggested cinemas "simply ask wearers to turn it off before the film starts".

In a statement the company said Google Glass - the smart eyewear device that can record video - should be treated like any small gadget such as mobile phones.

"Broadly speaking, we also think it's best to have direct and first-hand experience with Glass before creating policies around it," the company said.

"The fact that Glass is worn above the eyes and the screen lights up whenever it's activated makes it a fairly lousy device for recording things secretly."

The CEA represents about 90% of the cinema industry in the UK, and also pushes the interests of groups such as the Federation Against Copyright Theft (Fact).

The Independent quoted CEA chief executive Phil Clapp as saying: "Customers will be requested not to wear these into cinema auditoriums."