tv Bloomberg Technology Bloomberg September 23, 2021 5:00pm-6:00pm EDT
emily: i am emily chang, will now allow users to send and receive tips with cryptocurrency to make money and give digital assets a boost. we talk about ceo jack dorsey's big move. plus, taking the stand against facebook. the whistleblower who gave the wall street journal internal facebook documents showing the company was aware of social and mental health risks of its products is not willing to testify before congress. we have all details. will travel level get back to pre-pandemic levels? we ask the expedia ceo later this hour. all that in a moment, but first a look at markets kr withiti gupta. look at markets with kriti.
kriti: it is a story of tech. mega cap stocks leading the upside. the new york faang index which holds tech stocks rallying 1%. what isn't in the rally is chinese stocks. ever grande macro risks, they are rebounding as you see the evergrande story contained in china. the nasdaq golden dragon index not on the rally, ending up flat. all the action was in the stock market, but more in the bond market. yields, a 13 basis point move in 10-year treasury yields after the fomc meeting, giving investors confidence that what the fed says they're going to do, tapering by november, is what is going to happen. you can feel that in real yields
spiking. this is the metric that a lot of people who invest in tech stocks are looking for. it has a lot to do with the correlation we saw in february, the yields spooked tech investors but today, yield and tack are up. i want to bring the conversations of social media stocks because when we think big tech we think facebook and twitter and ordinarily, the recovery trade would show up in social media stocks, but look at this, in the last months, a convergence. if there is a place to watch in technology, social media stocks is. emily: thanks. twitter will let users send and receive tips using bitcoin as part of a push to help users make money from the service. twitter also looking into authenticating users' identity eyes. bloomberg check's kurt wagner joins us. jack dorsey at square has made a
big bet on crypto, why is twitter making this move? kurt: they want to give people a chance to make money to entice them to twitter to share blog posts, tweets, photos, whatever, and accepting bitcoin is one way to do that. this is important to jack dorsey. he believes that coin is an international currency. it is the way someone who lives in africa might be able to pay someone who lives in europe, who could pay someone in the united states. you don't have to deal with a currency exchange. this is a global solution to try -- they see this as a global solution to get users of their platform to make money. emily: how many people are tipping on twitter at this point? kurt: they just rolled out globally today to only ios users. if you are on android, you probably don't have it. it is probably a small percentage. tips people get are probably
pretty small but this is the kind of thing you see other platforms that are important with creators have. i think this is a feature that is par for the course if you want to plea -- if you want to be a place where creatures go. they have to have a chance to make money and this is one of the ways. emily: talk about what twitter is doing with an fts. -- an fts. kurt: they want to help people authenticate their an fts. people share on the profile, these are the an fts i own, but there is no way for twitter to authenticate ownership your that want to make it a place where people, and reliably share things they bought. it plays into this router lock chain phenomenon and the technology, something jack dorsey again is passionate about. he believes in blockchain, so offering some nft product fits into that. this is the bare minimum, authenticating someone owns something is one thing. but imagine moving forward, it
might be the kind of place someone could buy or sell an fts. they are not doing that yet but that is where it might be headed. emily: kurt wagner, thanks for that extra detail. twitter's push into cryptic o -- crypto is powered by strike, a payment network. ceo jack wallace joins us to talk about the partnership. how much new business do you think this will bring to bitcoin and strike itself? >> the simple answer is a lot. but i think the integration of the bitcoin and lightning monetary network has more implications for twitter just for strike than independence. you are talking about a monetary network that spans the globe and can achieve instance, nearly free global cash finality, and comparing that with a widely distributed internet company
like twitter, this is a huge deal. we are going to see a knock on effect. twitter will not be the last. this is the beginning of a broader trend of companies using the first global monetary network to interact with users in a monetary fashion. emily: we will have to see how popular tipping on twitter comes with bitcoin. a big partnership for you. you say more deals are coming with other players. how do you win those deals and outcompete other third-party providers want a piece? jack: you are going to call me crazy, it comes easy. because the bitcoin is an open monetary network. people are building on the bitcoin network all around the world, mig professors, companies in san francisco, companies in china, the bitcoin network it's better day in and day out. you can't say the same about paypal, closed legacy updated financial system.
the bitcoin network is open similar to the internet, in the same way google is a better company for every new website that comes up. we are a better company for everyone who joins the bitcoin open monetary network. we get better weather i do anything or not and that is the open nature of this system. it is the first open network money that we have seen in history. so, it comes easy. emily: if it is coming so easy, tell us how much volume is being done on the strike app itself? jack: a lot. i am not disclosing that. but we are happy where we are at. the company was founded 18 months ago and we integrated with twitter today. we are part of the el salvador push. i am proud of this company and where we are going, and them happy with the numbers. but that is my secret. maybe someday, yours to find out. emily: let's talk about el
salvador. how is business? jack: great. again, this is an open monetary network that can achieve physical monetary settlement anywhere. remittance payment to the u.s. or el salvador is free compared to the western union solution which takes days and upwards of 50%. you are seeing people migrate to a singular standard to settle value. that is bitcoin. you are starting to see monetary network that is inclusive to all . eight el salvador, over 70% of the bank was not bank. now, 100% of the company and receive payment and services at no cost. humidity is moving in the right direction. i am proud of that and bit coin is a key part of that. emily: it doesn't come easy to el salvador. there has been pushed back the adoption of bitcoin. what countries are next, seeing
how difficult it has been in the country? jack: no one in history, no country has fully agreed on any move. there is going to be adversaries to any decision ever made, especially at that scale. i think the biggest proponents, and the ones to gain advantage from integrating going as network and monetary asset are emerging markets. emerging markets face an unprecedented macroenvironment with the monetary expansion and central banks right now. it is not ok. it is crushing those markets, monetary markets that are on bank because they are based on a cash standard and gatekeepers keep them out of the monetary network you and i rely on to live a high quality of life here there is no venmo in el salvador. there is no cash app. so emerging markets can hedge
themselves against the monetary expansion happening at central banks to protect their purchasing power, protect their savings and grow their wealth. and they can gain access to the most inclusive monetary network with a simple internet connection. all you need is a connection and a mobile device and you have the best monetary experience in the bitcoin. emily:emily: network you said you would allow users to keep their funds in bitcoin or tether, the exchange for fiat. it seemed you dropped tether option quickly. why? jack: it is optimized for the best experience for the best friend. we want the best for our consumers and people want cash, people want dollars. we listened to our users. one key property of building an experience that is valuable is being a good listener and being patient. we are constantly iterating perfection. there is no finish in building software. it is a constant process.
we continue to add features and services our consumers want. emily:emily: it is really as simple as that. we will continue to watch -- emily: coming up, blowing the whistle on facebook. how a key source in a damaging series of reports about the network set to testify before congress. and i look at chipmakers, developing news, the biden administration considering invoking a national security law to force companies to provide information on inventory and sales of trips. the,'s -- the commerce secretary says it is aimed at a leaving bottlenecks and could identify hoarding, as the secretary wraps a summit with leaders of companies in the supply chain for chips. this is bloomberg. ♪
♪ emily: things could get more complicated for facebook. the whistleblower who leaked internal documents saying the company knew about mental health risks from lat forms -- from its platforms is prepared to test of -- is prepared to testify before congress. naomi: there are more revelations that could possibly come from the whistleblower. a lot of that has happened. the wall street journal did this peak series based on documents and others from internal sources that claim facebook knows a lot
more about the ills of its services and hasn't always acted in a way to address some of those issues. one of them is the effect instagram has on the mental health of young kids. nearly a third of teen girls say instagram makes them feel worse about their bodies. there was reporting around what facebook knows around how human traffickers use their platform. it seems they do know a lot more. there was reporting on the fact facebook has what it calls crosscheck, which is a program to essentially give public people -- politicians, elite journalists -- freedom to break the rules without consequences. those are just some issues brought up by this "wall street journal" series and it looks like there could be more revelations. emily: facebook responded to this series of stories from the journey a couple times.
this is from nick clegg. the stories have contained deliberate mischaracterizations of what we are trying to do and conferred egregiously false motives to facebook leadership and employees. facebook is being compared to big tobacco. how's washington taking this? naomi: washington has reacted strongly. in addition to the fact they have been talking to this whistleblower, a hearing next week looks at, in which these documents are likely to come up again, and they are the ones drawing this comparison to big tobacco that allege facebook new and facebook in some cases misled them about what it knew. and they have vowed to respond and bring facebook to account. emily: bloomberg's naomi makes will continue to follow the
♪ >> there is going to be a huge shift from leisure travel -- from business travel to leisure travel. business travel is not coming back. but the more people are home, the more they want to travel, cities, small towns, rural communities. >> we had to invest aggressively to bring more drivers on to the
platform. >> travels back, governments are opening up capabilities to move around. this is my first business trip. great hotel at a great conference, the twa hotel. i love getting on the road again and i think that is going to be contagious as the world opens up. emily: some of the ceos we spoke to this week at a form on what the travel industry will look like. the u.s. is expected to announce new rules for fully vaccinated air travelers. expedia ceo peter kern joins us. delta is not going away, but if the u.s. reopens to fully vaccinated people from other countries, how big a threat -- shall begin impact on the trend
-- how bigan? ? impact on the trend peter: big impact. planes have to open up the routes and put more airlift out there, but there is huge, pent up demand as we have seen in the u.s. when certain places open and travelers can get there. i think getting vaccinated travelers to the u.s. will be a huge opportunity for the industry and us in particular because we are well known outside the u.s. for international travel. that is going to be a big boon for us. emily: and brian chesky maintains his position travel will never be the same. listen to part of my chat. brian: the world is continued to be more flexible. people don't go back to the office five days a week.
some business travel is curved. if you believe those things, then travel is never going to come back the way it was. it is going to be different. i think there is going to be a new golden age of travel, it is just going to be really different. emily: do you still disagree? you believe business and leisure travel willfully come back to what they were in 2019? peter: i don't disagree with brian. if you take his thesis that we don't go back to work five days a week, which is an open question, i'm assuming our company will go to hybrid work when we do come back, it is true , that you are expanding potential for longer weekend trips and things like that. different, sure. business travel though i think will return. i was with a leading bank ceo this week and he said a team of his was offered a business and five banks were offered the business and his team went in person. the others all did zoom and his team won. a huge piece of business.
you are going to see bankers and lawyers and consultants to get on the road and go win business. brian may be underestimating the return of business travel. relationships, sales, a lot of things including building corporate culture only happened by being together. but different, i agree with brian, it will be different. in the makeup of travel will be different. i don't think net corporate travel will be material heard in the long-term. i think it will still exist. and i agree with him that there will be a golden age, tons of pent up leisure demand like the kind we are seeing from europe coming to the u.s.. emily: meantime, you are unifying loyalty programs. expedia.com, orbits travelocity, a loyalty program for verb out
-- v rbl. peter: this is a way for us to simplify our offerings for the consumer. it is about the consumer. it is about making all our brands and products available for the consumer in one plan. you can earn rewards anywhere e them anywhere and we think that is a huge opportunity. we have got three plans. they already have 145 million members. this is an opportunity to hugely expanded that, but also, an opportunity for those customers to find a way to earn rewards at v rbl -- brb oh and maybe use those points for travel - vrbo and use those points for travel and take the family on vacation. it is a huge opportunity.
and it is a big opportunity for us as a company to keep those people in our universe and have them understand that there was a reason you want to be in the expedia universe and use all the products. emily calling -- emily: my colleague has been doing a series on dangerous listings and focused on airbnb and brian chesky said he would be willing to participate because of the platform that might -- because of a property that might get pulled from the platform, would expedia share that information with airbnb? peter: absolutely. customer safety is priority for us. we don't want to put any consumer in an unsafe position and anything we can do within the law, we are happy to do to rid the market of bad actors.
recovery trade and tech trade. what is not lagging is the names over in the food delivery business. i want to show you what door -- is doing. it is -- doordash is doing. they are thriving on a one-year basis. we have news they are leading the fundraising round. it is not just doordash doing well, they are actively investing in people with a similar business model. i want to end with cryptocurrencies. we can't and the check without talking about -- end the check without talking about crypto. crypto is doing his job. -- its job. emily: el salvador, a country
that primarily uses the u.s. dollar has made bitcoin legal tender. why the emotionalism -- conventional wisdom is wrong. >> there is a place where bitcoin really is taking on the dollar. ever since he wrote the original bitcoin white paper, crypto fans have wondered if it would ever replace the dollar. in one corner of the globe, it really might. el salvador uses it as its main currency. that country has a population of less than 7 million people and they made bitcoin the legal tender. that means that el salvadoreans
can pay taxes in bitcoin. and they will have to be accepting it as payment for goods and services alongside the dollar. it is a big user of twitter. remittances are sent home by el salvadoreans and account as 20% of gdp. a large chunk of this gets lost in transfer fees which bitcoin can help to induce. -- reduce. how did it go? not great. later in the day, cryptocurrency plunged 70% after the government
disconnected its bitcoin while it before reconnecting. the president tweeted about this, lapping up another 150 coins with $26 million. it had teething problems but it is also proof that bitcoin can and is used as a real-world currency. with that, crypto fans put off their biggest coup yet in a tiny, central american country. for more content like this, follow us on your favorite platforms. >> he helped doug the new age of the internet web 3.0. he is the founder of the
decentralized block chain. i want to bring in gavin wood. great to have you with us. you came up with the technical specs to back up if the area -- ethereum. now you are working on polkadot which is meant to bring block chains together. >> that is why we started making polkadot. curiosity. it is always difficult to predict the real potential of technology until you build it and tried out but we are sure that polkadot provides a different possibility for the use of block chain. emily: how much traction is polkadot getting with users? who do you consider the main competition? gavin: last time i checked we
were the second biggest developer outside of the cerium. pretty well. i think that is a testament to the fundamental possibility that polkadot offers developers beyond the smart contract model we pioneered with ethereum. >> is it a race to outcompete ethereum? gavin: outcompete. something more generalized, so the more abstract. just something -- what we imagined back in 2014. emily: there are strong, passionate but desperate immunities in the bitcoin -- in the industry. is the goal to bring bitcoin and
i theory him and those communities together -- ethereum and those communities together? gavin: these systems are often properties that have very little possibility for interacting between themselves. one of the things we wanted to solve with polkadot was the possibility of experimenting many different directions. not to be an independent and isolated hub but to operate with each other. emily: do you think there is a drawback to bitcoin maximal is him -- maximalism?
gavin: back when we were beginning a cerium -- ethereum there were bitcoin maximalists. when you're just there to push forward the technology with the same sort of goals, you want to help decentralize the world and reduce transaction friction between economic activities. it is kind of unfortunate that the thing that i am behind is good and the think -- the stuff that everyone else is behind is bad. part of what it is about is building bridges between ecosystems.
emily: there are big concerns about regulation about what looming regulation could mean. gavin: we have a few people that are connected into these conversations. i think regulation can be a useful driving force for decentralization. there are these decentralized projects that are decentralized in name but in the reality of their implementation, they are not very decentralized at all. it is changing the direction resources are flowing to and it
is confusing people. i would hope that regulators can help set this straight a little bit and identify these decentralized projects. they need to bring them in under the same rules. emily: the problem that ethereum is bent on right now is that makes them vulnerable to these robo traders. how big of a problem do you think this will continue to be? >> these smart platforms, they
really only -- don't have a liberal execution model. the reality is with ethereum, we have a smart platform, we have a transaction execution model. this business logic that is driving the trading is only executed at the behest of users, trans actors and minors -- tr ansacort -- transactors and miners. they get to determine what executed and when. this application could reorder
all smartphones and tablets. it would be his for cameras, portable speakers and handheld video councils. the aim of the plan is to cut waste and semper fi life for consumers. apple is opposed to the standard, saying in risks hurting innovation. personalizing your shopping. fitbit reported earnings earlier this week, jumping on this according to morgan stanley. shares have fallen after surging 129% last year as the company benefited from the online shopping search. joining me for more on the numbers is elizabeth. great to have you back with us. talk about the trends that you saw as we continue to travel through a pandemic.
>> great to be here. thank you for the question. it has been a wild ride. our results with 29% year-over-year. we will see this continued migration. we added close to 300,000 over the back half of the year. what we characterize is our progress on innovation and a change in consumer shopping behavior. our category is -- has gone from 25% to 45% online. this is the growth in our revenue. part of why we think that is as for the investment we made in innovation. they can preview 10 items, three quarters are opting into that.
both of those things contributed to a great quarter. most excitingly, they are open to new customers. >> shares are still down significantly. what is the message to investors ? >> we are dramatically expanding our market. what this represents is your own personalized store. we know that three quarters of students struggle with this.
this is your own personalized store. what is so petty is it opens up her entire market. you can see just the things that matter to you. we have seen growth well beyond what we saw in fixes. freestyle dramatically opens up for us. >> states fix faced some criticism. you tightened up some of the stylists. you are relying more on ai to make styling recommendations. how have you addressed this problem? >> styling has always been part of the dna. we are scaling our experience.
that combination has created just a powerful dynamic. as we evolve our experience, we made some adjustments, making sure we had the right inventory at the right time. we know that some of those changes would not work for everybody. that said, we learned a lot in the process. there was flexibility that mattered more than we appreciated. the part of the core dna is what is also powering our new freestyle offering. you can see this generated within that shopping feed. a lot of the power behind that is coming from our style. they are helping us curate great outfits, 10% of those outfits are coming from our styling community. the rest are being powered by
how they are helping train our learning models. stylists are absolutely part of our future. emily: all right. thank you for explaining that. i appreciate you taking the time to join us. >> we are going to find out how postel sports is muscling in on the food industry. that is next. this is bloomberg. ♪
they snatched up $44 million of the share today. another 11 million on wednesday. shares have taken a hammering over the last few days. barstool sports is known for pushing the limits in a lot of ways. it started off as a media company and it has expanded into podcast creation, sports betting and it has made spiked drinks. the company founded by dave portnoy is moving into the ghost kitchen trend with the help of robert earl. >> one of the great things about postel sports is we started from
the internet and we came from the internet but increasingly, we are getting physical. we will be opening our own bars and restaurants this fall. we tapped robert earl to create barstool bites with us. we thought what better way to give people the type of food we eat on saturdays and sundays and to curate that with our talent and personality. the same thing with one bite frozen pizza. there is no one who knows more about frozen pizza than dave portnoy. >> what is this virtual idea? is it a ghost kitchen concept? explain that to us. >> but barstool bites will be, it is a ghost kitchen. you can be watching football on a saturday or sunday. you can go to uber eats or grubhub, whatever your food
delivery service is. you click barstool bites and choose your menu. we have chosen restaurants that were recipients of the barstool fund back in the beginning of this year. the ghost kitchen concept essentially enables consumers to get food items anywhere, anytime through whatever delivery service they use and the quality and brand will be the same. >> would you ever consider going public? >> we have a majority stake investment. people who want to support barstool sports, we thought about it when we did the transaction that was right in the middle of this, our fans, barstool has been around 18 years. people have always tried to find a way to support barstool. first and was buying t-shirts and then watching her content
and now it is supporting advertising partners. now you can buy our pizza, our alcohol, now you can support us through our partners. >> who do you see as your biggest competitor? you're trying to disrupt so many different industries. >> it is hard to create one competitive set for us. we compete with espn, bleacher report, mgm, drafting. we look at everyone as a competitor and what we are trying to figure out is how we harness what we know how to do to create the impact we know we can have and to do it in a way that is really authentic to barstool. that is what keeps us motivated. >> we will see where barstool goes next. that does it for this edition of bloomberg technology.
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