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tv   Bloomberg Technology  Bloomberg  November 19, 2021 5:00pm-6:00pm EST

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♪ >> in silicon valley and beyond, this is bloomberg technology with emily trying. ♪
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caroline: will wald will estate is uncertain. property sales are surging and bringing in real-life dollars. we will have the latest on the matter. we will get to this in a moment but first, i look at the market starts after remarks from the fed officials that amount to concern about another wave of the pandemic in europe and more lockdowns. it paints a picture where people want tech. >> it was dependent on what the fed said, whether inflation is transitory and whether the supply chain concerns are piling up and whether you start to see covered lockdowns in europe spill over the united states. the big tone of today was risk-off. you saw this year with a little bit of a bid in treasury yields
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going down three basis points. tech outperforming and crypto was up 2.2%. wrote -- usually it is a risk sentiment gauge geared let's get to the story here, semi conductors in particular. semis and ev. as you see the ev boom, you see them needing more semi conductors with a. . stock rising more and more. i want to hit the news we have got an after hours. ford and rivian scrapping their partnership. rivian and ford are choosing to move ahead independently but i want to stick ahead with the semi story because it was the story of the week. a tale of two chipmakers. there has been a global shortage and there have been supply constraints and that has been the story for applied materials and asm out, the dodge semi chip maker, making the equipment you need to make the parts for things like iphones cars and computers. their extra explodes to supply
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chain concerns. you have nvidia up for a second day, getting near the $1 trillion market cap, all about diversification for the company. i will end with our top performer driving the nasdaq higher, right there on the ceo speaking at the economy forum, saying the chip shortage is still thereby easing and getting easier. we hope emily: in some parts of the economy and still front and center is the supply chain issue for the government. nancy pelosi has been united the democratic party to pass president joe biden's tax and spending bill this morning. the legislation heads to the senate where the fate is uncertain. standing by in the white house. emery, overall, we are seeing one democrat vote against the bill in the house but the senate will be different. emory: it is because you have to get every single democratic senator to sign up and vote yes
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on this bill. today was a big hurdle to clear for the party. now, when it goes to the senate, it will be even harder to make sure they can control everyone on board with the same policies. the issues that we are seeing in that there are provisions in the house bill that the senate wants to change. the salted auctions, the potential provision may change. we hear from bernie sanders and bob menendez, how they want to potentially edit that policy. something that is important to pay attention to his paid family leave. senator manchin has said he does not think it is appropriate. it is going to be a very difficult process. not only that, senator schumer once again once this done before christmas. this is a very tight deadline, given the fact that in the upcoming weeks, senators will not be here for thanksgiving. caroline: no indeed.
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what is the dividing point here? is of the content, the inflationary pressure, the fact that there is still so much discord between certain parts of the united states, where we look to joe manchin to decide the fate of one particular bill? emory: it is hard to foot of -- part a figure on what could be the one thing. any single senator could have an issue with a provision and block that vote. senator kyrsten sinema, her issue is with corporate taxes. senator joe manchin has an issue with climate provisions. potentially senator bernie sanders. depending how they are able to get to a consensus, this is why it is so difficult in the senate. it is because the democratic party has a majority, but it is razor thin. every single vote they need.
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anyone at any moment could act like senator joe manchin, who some people call president manchin, and the president said when you have a senate with 50 democrats, everyone is president. caroline: there is a little tension into the holidays. it will be busy in washington. let's turn our attention to the headlines in the world of technology, bitcoin of. in less than two weeks, this is a volatile asset if you haven't realized. bloommberg news crypto managing editor and i am interested in the overall volatility. it is to be expected. we are up 40% since october. reporter: we had an all-time high of 69,000 couple of weeks ago. i do think that what is fascinating for crypto in the asset class is if the dow was down 20%, people would lose their minds.
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with crypto, it seems fine. they don't think fundamentals are happening here and what they are looking for is a support level below 54,000 -- 50,000 is when they will start to worry folks say. caroline: technical at play here. you hear many a reason. is tax -- the path that people profited so much and will sell down and lock in, are they just plunking it forward because this is volatile? stacy-marie: both of those could be true. i definitely think that the fact that the tax provisions have made it into the biden administration proposal, the fact that we are reaching for the end of the year, after what has been a breathtaking run, and some folks are like closing out their portfolios into january. i think they have reached a settlement. this is one of the very first
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earliest exchanges. some people have got bitcoin and decided to exit. what we are going to continue to look at is the overall sentiment across a basket of currencies. we are going to keep on some of the other coins to see whether this is a token specific selloff or something else. caroline: it is important to look at the rest of the crypto sphere, because there are exchanges where you can trade not just bitcoin, ethereum, and their own valuations are coming higher. they are not raising money except through private equity. talk to wes about the exchanges that had the valuations this week. stacy-marie: gemini, which is famously owned by the wind bosses, raise $400 million in evaluation of 7.1 million dollars. they have some interesting participants, including the commonwealth bank of australia,
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a very traditional. commonwealth will partner with gemini on digital asset custodianship. we have seen some other interesting ones recently. they raised $400 million not too many months ago. a couple of things we are looking at is what we will do with this money. for some of them, they said we need to hire. some of them are trying to hire compliance and legal. caroline: they are pretty compliant, gemini. stacy-marie: gemini have always positioned themselves as, we are making nice with the regulators and that has been something they have used as a selling point. by volume, they are significantly smaller than their rivals. their average daily volume are $200 million compared to the 10s of billions. they have really focused on compliance and may be looking to --what we are also seeing is they are trying to make acquisitions. it is getting interesting quickly. caroline: remind us, the winklev
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i, they are billionaires in their own rights by how much bitcoin they own so why do they need outside money? stacy-marie: that is one of the angles described to us. the types of partnerships they are pursuing are what i would consider mature and mainstream. to your point, the ipo phase is interesting. [laughter] stacy-marie: here, we are talking about what white shoe in wall street types of investors. that gives a degree of reassurance to folks who are looking at this as a class to make a determination on, if i am risk-averse, with a pension fund in australia, i'm not sure i want to hold bitcoin but are there other ways to get exposure? caroline: square, perhaps, to a more decentralized exchange. can we go there? the dow with futures, and now
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they have $50 million. stacy-marie: imagine going from a bunch of people on the internet being like, what if we order a copy of the constitution? to what if we had $50 million to buy a copy of the constitution? no, you have this one. this is mine. what a fun week. caroline: now they are trying to raise $500 billion to be able to buy and develop something. [laughter] caroline: the jokes write themselves. stacy-marie ishmael, crypto managing editor. intuit shares popping up with better-than-expected quarterly earnings. telling us about the role they played in the success story. we will discuss that in more. this is bloomberg. ♪
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♪ caroline: intuit shares soaring after releasing quarterly earnings. feeding estimates by far. the platform makes lots of things. it expects revenue growth of 18 to 20%, up from 15 to 16% expectations. we have a key component of credit, and founder ceo. that part of the business seeing $418 million in revenue and analysts saying the strength of intuit's numbers were based upon in large part you. why are you making so much revenue at the moment? ken: thank you for having us.
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it really has a focus on solving consumer problems. credit karma has been in this space 13 years helping consumers find their credit scores and understand them. we have been very focused over the last five years on an important aspect of what that means. when most people are trying to understand their credit score, they want to understand what they are qualified for. we have built a product that solves an important problem. most consumers get declined for the product they applied for, the credit products. my stocks saw that in a meaningful way and that is what you'd see in terms of strength of the business and engagement and the strength of the partnerships we'd have with financial services. caroline: talk to us about membership levels you see and how you continue to win new clients? ken: we have over 120 million members. that gives us a lot of scaling. we approach new financial services partners. we started off helping members
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find the right credit card, then personal loans, our core busness. we have expanded into other verticals like auto loans, home loans, auto insurance. more recently, checking and savings products, with an eye of helping consumers find the best product but most importantly saving money when they find them. caroline: how linked to the economy are you in the respect that when a consumer feels flushed with cash, they want to make bigger for -- purhcases . does that bode well for your business? does it hurt? ken: anytime the economy is in trouble, most companies deal with that. consumers on average take out one point one credit products each and every year. our focus is when they look for those particular products, we are here to help them find the very best product from a cost perspective. we are here to semper fi the application process so they don't have -- and we are here
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to ensure the products they qualify for -- apply for is once they qualify for. that is important for most consumers. caroline: remind us how you make your revenue and what side you are managing to make money. is it from the partners you have? ken: that is an important question. we focus on being a trusted ad visor to our members. 120 million of them today. we make money when we help them connect to the right financial services products. we don't sell impressions. we get paid a success feet when our partners and members are able to find a financial product that helps them. caroline: you must be incredibly focused and passionate about the world of financial literacy. is that something you think has been focused? on enough? ? do we seem to have, from our heady days of retail investors versus ken griffin? now it is just bitcoin. and crypto and nft investors.
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. i'm interested in your perspective on how people are understanding what they can spend on and if this is a role. . for government in some way ken: i think the financial services industry has got tremendously complicated over the last 30 years when you think about big data and machine learning. when you think about the new innovations and technologies banks are using to find the right customers to underwrite the right customers to create complicated products, there is no way that your typical consumer can really keep cases and all of that. what are insight is in our platform is focused on is solving those problems in creating parities so all the big date the banks are using --big date of the banks are using, our members can use. we are able to connect and understand it will improve your bank fee. to your question about is this something the government needs to sell, they need to step in in some form. banks and products are so complicated that there is no way of keeping pace these days.
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caroline: i am interested in the rise of by now, pay later. the ceo of intuit was saying you were going to benefit. credit karma can benefit. how so? ken: keep in mind our focus is to make sure that our members can find the credit products they need. for us, we are agnostic. whether that it's a credit card, a personal loan, an unsecured loan, we want to make sure whatever they are shopping for, they get the best price, the transparency, and we are able to make the process as easy as possible. for our perspective, we keep an eye on the sector and the other thing we are focused on is we want to make sure the products are good for them. one of the questions right now is, is buy now pay later good for the consumer? we are tracking that closely and investing our time and engineering resources against that. caroline: great to have some time with you, can lynn -- ken lin.
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half a dozen bipartisan attorneys general are coming together to investigate instagram's role in luring young kids. on deplatforms. . . what they plan to do next. let's take a look at the makers of the covid vaccine booster shots. pfizer and moderna received unanimous backing for use in all u.s. adults, clearing the way for millions to get protection before the covid surge in the winter. this is bloomberg. ♪
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♪ caroline: a woman who works in fremont, california has followed a lawsuit against the ev makers saying female employees face sexual harassment.
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they did not respond to a request for comment as the company is facing 137 million dollar verdict in favor of another worker who said he experienced racism at the same factory. the top lawyers in more than half a dozen states around the u.s. are joining together to investigate instagram and its impact on kids and teens. for more on this, joining us for more and remind us what the ag's are setting out to do, what they feel that can be achieved in their investigation. reporter: so the state attorneys general essentially said they are looking into how the company has been handling young users on its platform. this comes after a series of articles with documents surfaced by former facebook product manager turned whistleblower frances haugen about the effects
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instagram has on young girls and their mental health and their self-esteem. the ag is saying we are going to look. into this. . we're going to look into whether meta has been upfront about the effects of its platform on these vulnerable users. caroline: how significant is this? for meta, the list of investigations is relatively long already. naomi: yeah, i mean, i think it is just another point of scrutiny for the company and another topic that ag's are, you know, looking into. look, they had months to go. they had urged facebook to abandon its plans to create instagram kids. it was going to be a sort of conversion of instagram --
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version of instagram for young people under the age of 13. they said look, they had serious concerns about privacy. they had concerns about the impact, you know, on kids that this product would have. they urged facebook to drop. facebook eventually did that. they had not gone as far as to initiate a probe. this is a significant action. caroline: the new york attorney general has been saying that our coalition will not hesitate to take whatever action necessary. what action would they take? naomi: they can file a lawsuit. you know, essentially alleging some sort of harm or valuation of meta's terms of service. -- violation it adds to what they are already
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investigating facebook around potential antitrust issues in the way that it has been se eking to acquire rivals. this, again, adds another point of scrutiny on the platform and adds another issue that those regulators are looking into at the state level. caroline: we want to thank you so much, naomi nix bringing us the latest with the attorneys general and how a look at meta. another volatile week for bitcoin. we have discussed it and with the industry facing regulation, some argue the crypto sector should regulate itself. taking a long, hard look at that and the valuation of digital assets overall and in the metaverse, this is bloomberg. ♪
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♪ >> that looks like a very interesting and somewhat exotic effort to literally mine new coins in order to trade with them has the potential for undermining currencies, for undermining the role of the dollar, as the reserve currency, for destabilizing nations. >> any financial institution, to be honest, any person could -- should look at crypto and
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understand it and if you don't like it, that is ok but not learning it is irresponsible. >> you say we are not working much on trade platforms. it is in addressing customer needs. in the same manner, we want to help them recognize the investment and how to handle it? caroline: this is bloomberg technology. i'm caroline hyde. world leaders weigh in on the future of crypto. kriti: it was a risk-off session in the markets but that did not show up. you saw the bloomberg galaxy crypto up 2.2%. it would have been bitcoin driving the gains. ethereum diverges from the broader sentiment in the market. here is why bitcoin is the story. you see the chart and look at how this is performing lately in
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the conversation of inflation in particular. this will be a chart of bitcoin as the orange line and the white line being the five-year break evens,. . measuring those inflation expectations. . you can see they move together closely, the idea bitcoin could intentionally --potentially beads the bitcoin hedge -- inflation hedge where world leaders say this could be the key to undermining the major currencies, which is also affected by inflation. let's get to how you play this outside of the crypto world and that is the stock market, specifically etf's which not too long ago made their debut. the bitcoin feature etf i want to look at is bito. it has only had one day of outflows, so you are not seeing an acceleration into these but you are not seeing money come out of it. that will be a relationship to keep our eye on. caroline: let's take a little bit deeper into the world of crypto in the world of bitcoin. it has been losing 20% of its
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value in two weeks but again perhaps keeping investors a little bit on their toes and take a profit. she joined us for our weekly crypto currency. what you get in the world of nfts. when you are looking at the volatility of that coin, many saying we have a slightly less volatile environment. is that something you are looking for, or hoping for? guest: i think if we are trying to remove volatility from crypto, we are doing crypto a disservice. people of the volatility.
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the sooner we admit that, the happier we will all be. it is addicting because it is so volatile. i think despite that fact, i am seeing lots of traditional capital waking up to the metaverse opportunity. we are seeing more slow-moving capital, pension funds, really trying to get smart on the category. in the next 18 months, we will see a dynamic shift in asset relocation. they are going to look to a location crypto. especially the metaverse. it is too big of a category to ignore. anchor: i think the rest an element, the gateway drug has been bitcoin. and you start looking at the other alternative coins. there are more traditional ways
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of getting exposure. you have metaverse, the new brand of facebook. even nike looking to get into that place. what are some of them are interesting place on metaverse? guest: people that are technophile, love bitcoin. but it is too to of twos. i think nfts will be the gateway drug. we have actually made it easier to understand what the use case for blockchain can be. by sticking pictures of penguins , we have brought an entire new
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group of people onto crypto. matt just for finance. for the world. we have seen entire communities form around nft projects. it is --. anchor: people are saying a jpeg is not enough. is saving some of these jpeg's. perhaps yes it is a cultural revolution. but they do not feel they can understand fundamentally what people are buying when they are getting into nfts.
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you say to that? guest: i would say they are missing the point entirely. a has nothing to do with whether it is valuable or not. it is about scarcity, innovation, and the strength of its community. i never mentioned how artistic it is. that is not really what it is about. it is kind of like owning a ferrari. it's a cart that can get you from point a to point b. but that it's not what is cool about owning a ferrari. it is a very unique, rare automobile. it is very much the same with nfts. the owners in that community
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value the attributes highly. even if people outside the community do not understand it, as long as it continues to grow, that asset will continue to grow in value. anchor: to the eyes of the beholder, it is hard to show scarcity. thank -- how do you understand the provenance to understand that rarity? guest: fantasy island with a project, there are only one hundred of them. they're only 100 in the metaverse. -- there are only 100 in the metaverse.
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there are people paying more for islands in the metaverse than they pay for a real home. which speaks to scarcity and the strength of the community. anchor: but the underlying technology and the usefulness. to us about the use case of these decentralized assets. guest: for the ones that are built in games, it is the idea of owning something that is yours. you can invite your friends there. it is social validation. it is social currency. that is why we are so bullish on the end game.
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anchor: what games should we be looking get? is the excitement for you? guest: all think -- people think there is one of metaverse. have a team that does nothing but track new metaverse's. the one that that has been around for the longest put fantasy island in the sandbox. there are a whole host of metaverse's. s. i like to think about
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bringing women into the fold. so metaverse says that our a little less dystopian. there is one called hyde street that we really like that centers around the concept of shopping. anchor: thank you so much for joining us. why is everyone claiming to be a platform? this is bloomberg. ♪
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anchor: they are suing pelleting as pelleting. the lawsuit claims shareholders lost in one day. meanwhile, some of the biggest tech companies may claim to be platforms. but it seems just about every new company is a platform. the platform model is supposed to mean big dollars for investors. my next guest argues many of these suck the value out of the companies that actually do this.
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is legitimately a platform? guest: the issue is not whether or not a company is a platform. all of those companies you mentioned actually are platforms. all a platform means is a business that does not make something. it creates value by connecting people in a network. they can do that through a transaction, they can do that through a social network. that is all that form means. the notion that it is a new and magical is this model, that it's just silly. there are plenty of platforms that have been around for decades, even electronic platforms, like credit cards.
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that is a platform. the idea that just calling something a platform means it is a great business, that is the fallacy. investors lose if that were the aspect of the business model that determined success. the real estate brokerage is a platform. it is looking to connect people who are trying to buy something with people who are trying to sell something. that is a platform.
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if it is a digital version, often the opposite is true. what is the difference between a digital model and the analog model? in the analog model, there is a lot more leverage. very often there are low fixed costs and that means lots of competition. that is why often the digital versions of platforms that use to operate, suddenly become less profitable rather than more profitable. anchor: who are you writing this book for?
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guest: investors are certainly an important audience, but i would say part of this is my role as a business school professor. the percentage of students out of business school core going to early stage companies, which overwhelmingly are actually going to fail, has skyrocketed. in the old days, they went to consulting and investment banking. now the majority go to new startups or companies that have less than 50 employees. they go on the belief that somehow these businesses are preordained to succeed. and the reality is, these is this is are harder to make work,
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not easier. anchor: are you going to have to keep on updating this? there are a lot of words companies just put in their business model. anchor: i don't have to update it because i have a chapter on that. the phrase refers to a very specific ally. the lie that says platforms are new. it also refers to more general phenomenon. where promoters use trigger words, whether big data or ai in in a loo of talking about the fundamentals -- in lieu of
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talking about the fundamentals. there is not a strong correlation between being a platform and having strong competitive advantage. anchor: jonathan need. --knee. as we had to break, vian says the carmaker has decided to focus on its own projects. this is bloomberg.
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anchor: his knee is adding disney plus -- disney is adding disney plus. the move gives them millions more customers. now let's talk about some of that content. south korea is becoming an interim journal -- international cultural phenomenon. >> of korea is having a moment, between squid game and the oscar-winning film parasite. i am alex webb.
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game is a massive hit for netflix. -- squid game is a massive hit for netflix. power is where you force the country to do what you want. in 1990, he said others will more willingly follow.
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you have levi jeans. you have coca-cola. all those are things which might make people go i want to be like that. when you think about squid game or parasite, the aim is to win money. if you don't win it, you die. site shows a family and the poor side of town -- parasite shows a family on the port side of town. of course, south korea has a lot of other mega hits.
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for south korea, the exports may be enough. anchor: at does it. -- that does it. my colleague david westin is next with wall street week. as we all await the announcement from the federal reserve or from the administration on who will
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lead the federal reserve. i'm caroline hyde. this is bloomberg. moving is a handful.
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no kidding! fortunately, xfinity makes moving easy. easy? -easy? switch your xfinity services to your new address online in about a minute. that was easy. i know, right? and even save with special offers just for movers. really? yep! so while you handle that, you can keep your internet and all those shows you love, and save money while you're at it with special offers just for movers at david: was a week with a little
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bit of everything. this is bloomberg wall street week. i am david westin. the question of inflation and what we might not be thinking about. >> the desire to maintain credibility when you have made a big mistake is the source of data festers that we have had. david: a continuing crisis of supply chains and what we can do


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