tv Bloomberg Technology Bloomberg December 3, 2021 5:00pm-6:00pm EST
♪ >> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is bloomberg technology with emily chang. ♪ emily: i'm emily chang and this is bloomberg technology. coming up, the chinese ride-hailing app is planning to delist from the u.s.. why this could be just the beginning.
plus, omicron keep spreading, showing we are not done with the pandemic. how that impacts plans to get back to the office. top tuk-tuk desk tech companies are not employment -- the deadline to put women in the boardroom of tech companies is three weeks away. it was the slowest job growth in the u.s. this year is by unemployment falling. on top of the news of the omicron variant is spreading, the u.s. labor secretary remains optimistic. he might feel good about where the economy is headed but investors do not agree. let's get to ed ludlow. ed: we are taking the jobs numbers in stride as a mixed bag but the main takeaway for the market, it does not change the outlook for the federal reserve and its rate policy into 2022. what do we see with risk assets and tech shares? look at what is on the board.
the index gauges mega cap tech stocks and chinese adrs. they bore the brunt of this. it was down by the most in one day since march of this week -- last year. investors pull out of the stretch valuation tech stocks. this is an index with u.s. listed chinese companies down significantly ince -- since 2008. we will come to dd in a moment. crypto was up. i don't want to pick on one company but let's talk about meta, the company formerly known as facebook. since september, we have dropped 20%, bear market territory. is the poster child of the setting, associated with outlook for higher rates impacting tech stocks, stretch valuations. we are down to 19.7% since the peak in september of $380 a share. i want to see if we enter technical bear territory and let's talk about didi, the
biggest one-day drop since the company listed in june, trading at its lowest level since june, announcing it will deal as from the u.s. exchanges, listing in hong kong. allowed to unpack that it will have broader ramifications on the equity market friday. emily: i want to stick with that news and the broader implications. i am joined by -- christo d plunging at the upload does close. walk-through what this means next. chris: when we sent here right after the listings, we were hearing about how the chinese authorities towed it to go ahead with the listing. they went ahead. now they have to unwind this whole thing and they have to delist from the u.s. and they are considering relisting in hong kong. the timeline we are looking for is ambitious. what is interesting is the
entire adr today is down. there will be bigger ramifications in the u.s. markets for all of these chinese technology companies that listed in the u.s. since 2014. emily: what are the bigger ramifications you see coming? crystal: a lot of adrs are down today. there should be more pressure from chinese regulators on other stocks. we have already seen a little bit of homecoming. alibaba listed in hong kong as well. you can probably see that as a policy where if anything happens to your listing in the u.s., you already have hong kong. one that is interesting is what hurdles dd may say is listing in hong kong. hong kong's regulators operates differently as the u.s. regulator. you have to be fit to list in hong kong, not just take the boxes to be considered fit as a public company. even though they passed the
political checkmarks, having to pass the hong kong exchange laws, having to convince investors the second time within a short period that they should invest again, that would be a big time. emily: thank you much. we will continue to follow and watch that delisting a few months from now. nvidia shares saw the biggest intraday drop in a month after u.s. antitrust officials sued the company to block its $40 billion takeover of chip designer arm. we will get to our news reporter. what are the main points of contention with u.s. regulators? ian: what the ftc has said is what nvidia's rivals has said all along --how can we trust a competitor to be the owner of this technology? how can we trust them not to prioritize themselves? that is what the ftc has said in
bringing this case. it reflects what is going on in europe and the u.k. to an extent. emily: what is next? i mean, clearly, they have these challenges in europe and the united states. it does not look good. ian: i mean, we put in our stories. the citibank estimate says the chances of this being completed has gone from 30% down to about 5%. emily: mm. ian: all along, wall street has not expected the deal to close and now they really do not expected to close. that changed the conversation to what do stock bank still with this asset going forward? you know, all eyes expecting on when will nvidia give qualcomm. emily: this could be a huge loss. what are the numbers we are talking about here?
ian: i mean, you mentioned nvidia stock has gone down today, but this stock has been on an absolute pear up until today. that has massively inflated the value of the deal, in large part in nvidia stock. originally, the deal was worth $40 billion. by our calculations, the stock portion up until today was 50,000 billion. we have blown past the deal originally. if the transaction does not go ahead, it has to find a replacement. it will be tricky in an ipo. emily: what does this mean for nvidia's plan? let's say it does not happen. looking unlikely. what does it mean for their plans to become the king of chip design? ian: i mean, this has been an interesting idea. today was the only day you saw any stock reaction correlated with any news on this deal.
investors have been nice to have but the founder is doing a great job and creating data. you have all these technologies lined up. nvidia is the opposition, regardless of where it gets done or not. nvidia can still ease on technology and move into the markets anyway. that is the argument investors have had but now we have fundamental concern. emily: we will keep watching. thank you for the update. we will have the latest on the spread of the omicron variant coming up, including a warning from the president's chief medical advisor, dr. fauci, that many more cases are guaranteed in coming days. our interview with him next. this is bloomberg. ♪
♪ emily: google has once again pushed back the date for employees to return to u.s. offices. it comes with renewed concerns over the spread of omicron. the company had set january 10 as the return date for the bulk of its workforce to be back three days a week but google says it will be in the new year. a short time ago, my colleague david westin spoke with dr. fauci, director of the national institute of allergy and infectious diseases and chief medical officer to president biden. he explained what officials are learning about the variant detected in at least seven u.s. states. ♪ dr. fauci: they are getting more information on two fronts. one is what the profile of people who are getting infected. we are trying to find out if
there is any degree or not of protection, whether or not you were unvaccinated versus vaccinated versus having been previously infected. . that will be very relevant because the ultimate question here in the united states is if you have been vaccinated or boosted, given the mutations the new variant has, what is the chance of protection against infection and if not infection, again severe disease leading to hospitalization? we are learning about the city -- severity of the infection and the profile of the infected. as you know, we are starting to see cases every few hours to a day or two in the united states. as we approach the weekend, we will see more because once it is here, there is no way that you are not going to see more cases. the real question is, can the
fact that we have a background of delta variant, which is very dominant and has essentially pushed all of the other variants off the board --where will omicron be in relationship to delta? will it take off and become dominant? will it essentially get a bit smothered by delta, the way all the other variants? the only way we will know that is to wait to see, and that is what we are doing. we are getting important information, from our colleagues in south africa. we have a zoom with then tomorrow morning, so we should get another update in the morning. david: let me ask a question about south africa. there is information coming out of at that the number of cases is going up, not a surprise. the number of hospitalizations is not going up as dramatically. should we read into that or is it possible that as a matter of a delay, alike as it were? dr. fauci: i think the latter, a
lag. in order to get a feel for the relationship between infections, a high degree of symptomatology, hospitalization, and ultimately death, you have to have a lot of patients get infected, and you have to follow them for at least several weeks. although it is encouraging, that they are not seeing any concerning signal, like all of a sudden a lot more hospitalizations, that is comforting, but it is not definitive. we really need to wait until a lot more people are recognized and identified, who get infected, to be able to determine the degree of severity . david: dr. fauci, if we go back to monday, five days ago, we saw you in president biden. what do we know differently from what we did then about the omicron variant? dr. fauci: well, we know it is in the united states, which i actually, you know, wasn't
anything brilliant on my part, but we predicted that. when you see it spreading throughout countries in europe and asia, obviously, you are going to see it in the united states. the real, big question we do not know is what i mentioned a moment ago. how is it going to fair -- fare in our country, in a world in which delta is the dominant variant? that will be a very interesting situation to watch. david: on monday, you said, as you said just, it will come to the united states. you are right. community spread. is that inevitable? do we already have community spread in this country? that may affect questions of travel restrictions, right? dr. fauci: we absolutely have community spread. we have community spread with the new york-minnesota case, where someone was in minnesota and went to a conference in new york, got infected, and people with whom he had contact with got infected. we don't know how many of them,
but there is no doubt there is community spread. ♪ emily: you can catch more of. interview at bloomberg.com. . white house chief medical advisor dr. fauci. twitter's new ceo has wasted no time making his mark. days after the departure of jack dorsey, the new boss has restructured the executive team with no less than two department heads stepping down. stanley davis, who ran design and research, is leaving, as is michael montano, engineering lead. twitter is trying to drive increased accountability and operational efficiency. the need for more diversity in the board. activision and blizzard are needing to add women to their board of directors and soon in order to comply with california's gender parody law. more on that next. let's take a quick look at docusign chairs plummeting in its biggest intraday drop after
sink toward his goal of selling 10% of his tesla stake. he offloaded another billion dollars of shares in the electric carmaker. the purpose of the sales are to help him offset taxes. he has sold 10 million of his 17 million shares he needs to reach that 10% threshold. the deadline is fast approaching. some major companies have yet to add more female executives. activision, and blizzard need to comply with a california law requiring, among other things, companies with six or more directors need three women by the 31st or december or they rest of fine. activision and amd only have two women as of now. let's talk about this and more with abby adler been. great to have you with us. activision and amd are lagging. it is this a surprise? abby: it is a little surprised,
because they have plenty of notice. there has been a lot of talk about the subject. there is not a lot of supply of candidates. there is probably a lack of motivation. emily: do we expect them to add the directors before the end of the year? we had three weeks left. abby: you know, every company sort of touches down. we will see appointments in the next few weeks because people don't want to be called out. there was a lot of companies that are resisting sort of the sense of having pressure around it. is a pretty big number, emily. over half the companies are not complying. that is an -- a lot of board members. emily: there is a trial underway to determine if requiring women on the board is legal. where is that hea abby: it is probably risky for people who are advocates of this law, because there is a lot of questions, even when governor brown signed the law two years
ago, there were questions about whether it would hold up in court. i want to point out it is not just a legal issue. what is really at stake is the court of public opinion, where the law, whether it gets through the trial or not, where it has had a big impact and a lot of people are happy about the visibility of the issue. emily: when do we expect results of that trial? abby: that could take a while. it depends on how long the deliberations will be. i will not predict the outcome. we have all found that can be a little risky. i will say that i think, regardless of the outcome there, i think the statement has been made, in the statement by people who support the law and the people against the law. i think that is pretty clear. emily: let's play this out. i wonder if these companies think we might not have to do this if the law is deemed illegal. what happens then? abby: you know, the interesting
thing is, what is the penalty for not complying with the law? is not that big in the grand scheme. is $300,000 or $100,000, depending on how many infractions. in a grand scheme, that is pocket change at best. i think the bigger issue is how investors are perceiving it and other constituents. what we are hearing more and more is thinking not only just from the major institutional investors but the employee and the customer. that is where the voices start getting loud. i think that that is a permanent change that we will see, regardless of whether it becomes a legal. -- illegal. emily: my next question was how much progress would you say we made in the last year alone? abby: i think we made good progress. california is up to 30%, and
that is good progress. it means a lot of people will push for 40% or 50%. the trend is set. even if companies are not going to get to that true goal, i think we are not going to go backward. that is what i am counting on. i might be the optimist,, but i talk to an awful lot of boards and that is what they do all day everyday. i am hearing a real commitment to diversity. that gets me excited. emily: what about silicon valley ? obviously it makes up a large part of california, but does it still lagged the broader industry or broader corporate america? are they catching up? abby: they do unfortunately, and it is specific to the tech industry. one of the challenges when we get asked about this a lot is why is tech falling behind? it is a combination of a few things. companies tend to be smaller.
sometimes, there is a funny feeling within silicon valley and here's the irony. silicon valley, people are used to taking risks, whether the tech companies. it is a risk-averse mood as to why not diversify your board. is usually about bringing people onto the board that are not the people most like you. you really have to be intentional about thinking about wanting something different. that feels risky to a lot of people. that is why silicon valley is lagging. i am an optimist, and i think if people lean into it and think about the benefits, it changes. emily: if we can build self driving cars and rocket ships to space, we can find more women for our boards. what other corporate governance issues are you following into next year? abby: it is a big issue on
everybody's mind, eft. it is not unrelated to upper -- diversity. that will be a subset but boards are really trying to wrap their heads around, what does it mean to be high-performing? how as a company do we deliver? how do we report? that is a huge issue. another really big issue is going to be around ceos. we have seen a lot of real-time stories this week about companies and boards not being prepared for how to grow into their next management roles. emily: thank you for bringing your perspective today. another industry where there is a gender imbalance, crypto. twice as many men than women own crypto. what one platform is doing to bring more women on board. bloomberg has learned sony's playstation division is planning a new subscription service to
emily: >> a strong report. >> a good report. >> softer than we were expecting. >> disappointing. >> seasonality, seasonal flows. >> it is a report the fed wants to see. >> the fed has a window. >> they have to start moving. >> they have to move. >> they have to make up that most ground. maybe that means a faster hike
in rates. >> if you go faster, then you are -- >> the fed is looking to raise rates into a decelerating backdrop. >> the fed will have to be very smart, both in its communication and -- emily: welcome back. i am emily chang in san francisco. guests reacting to the jobs data , showing the slows growth in payroll for a year. let's get back to ed ludlow. investors have had a lot to digest this week. ed: exactly. if there was consensus, the child stated did not have enough to change the course of the fed, tapering, or rate rise. there was a selloff in risk assets. you see the crypto index. it is down 6%. we trade 24/7 in crypto.
it is spilling into saturday session. bitcoin under pressure. we were talking about bitcoin as an inflation hedge a few weeks ago. the fed will raise rates, isn't it? it has already played out. look at this chart, the correlation between bitcoin and stock is growing. you see it. 0.5. one would be a perfect correlation. a negative one, would be going in the opposite direction. bitcoin is not behaving as an inflation hedge, a haven asset on a day where we saw people pile into treasuries and yields come down. it is part of this risk off sentiment. that extends to stocks. companies related to cryptocurrencies. this is where we saw really heavy selling, marathon, riot,
heavy, out-sized selling. what is cryptocurrency? a hedge, a safe haven? it did not appear so on friday. emily: thank you. not everyone is getting equal access to the crypto industry. how to give women a piece? ok coin announced a $1 million commitment to reach the goal of 50% female customers by 2025. i am joined by the ceo of ok coin for more on this. talk to us about this commitment. what will this mean you are going to do? >> yeah, thank you for having me. we are in an industry that is emerging, which means we are seeing great people joining the space, promoting innovation, standing up to the status quo. we see strong female voices and thought leadership and leaders
building new things. at the same time, there is a gap in the number of people in the space, female versus male ratio. we feel very strong about making crypto inclusive, giving everyone equal access to what is coming up in the next 10 years, 20 years, and 30 years. we want to do our share. we are committing $1 million in the next two years to help more women to get into this industry, which means we will partner with different organizations to provide better education to women participants who will provide sponsorship to developers working in the space, who want to participate in this innovation wave. we will also help by bringing more voices to the world, because part of it is how to
give people more axis, but the other side is how we present our industry and present everyone in this space. emily: twice as many men as women own crypto. it is a bigger gender gap than traditional assets. why? >> here is my,. first, when crypto was started, was bitcoin was created, it was created as the first native money. that is different from the traditional concept of money. that means it is a break from normal mentality, normal mental framework. in general, if you want more, females tend to be conservative when breaking away from normal ways of thinking, to challenge the status quo.
that is part of what is playing a big role here. the other thing is, again, it is a new, emerging trend, so it is possible it has not reached as wide of an audience as it should over the long-term, so it is up to everyone one in this industry, every participant in this industry to promote awareness and educate. many times when i am in this industry, i was asked how do you feel about being the only female ceo of a global exchange platform. the truth is i don't feel it, because i am surrounded 50% -- by 50% female members on my team. you do not feel it once you are in it, but it is difficult to take the first step, make the first leap of faith, so that educational piece will be really important. emily: how do you think the gender gap in crypto is reflected in the deals that are done, the way investments are made? >> i think if we talk about the
gender difference, there is the possibility of falling into a stereotype. at the risk of stereotyping gender differences, i would say may females are more inclined to look at long-term values, look at what will happen sometime down the road, and males are open to short-term trading activity. again, i feel that is stereotyping. i think over time, as you bring more people into this and raise awareness and remove the perception the crypto is another boys club, i think you will start to see more equality. to be honest, we are in miami for art basel. yesterday, we had a woman posting. there were more than 40 women
female leaders, thought leadership, content leaders, builders, entrepreneurs who are at the event. it was great to see a lot of smart, competent female leaders in the space. it is also a matter of how we make sure that their voices are heard. emily: it is good to meet and hear from another female voice and crypto. the ceo of okcoin, thank you for joining us. wikipedia is entering the nft game. the co-founder is selling in nft based on the first edit of the website which reads, hello world. an entity would take a long the sale of the token. the funds will go towards charitable causes in a social network. coming up, dede delisting -- didi delisting.
things are happening. just because they announce they want to list on the hong kong exchange does not mean they will get listed. there is some record that only 20% to 30% and 100% compliance, hong kong the sting rules are rigorous. it does not mean they will get listed. what is interesting longer term for chinese companies is the strategy that will focus on hong kong. if you look at alibaba and tencent, all are listed in hong kong. think about bytedance or others, there are interesting companies that will not get listed in the u.s. chinese companies are walking on eggshells to please governments.
they are caught in between. now the center of the universe will be hong kong. emily: how many more companies do you think we will see this happen to? >> it is hard to say. there is so much sensitive transportation data. by the way, even though what is going on in the stock market, they have 70% to 80% in terms of rideshare in china. i think we will see more listings in hong kong. were talking about hundreds of companies listed in the u.s. on the new york stock exchange or nasdaq, so quite a number of companies. 2022 will be interesting to see what will happen.
emily: what does that mean for the valuation of these companies? will didi take a huge haircut? >> since june, they were listed at $14 and have dropped more than half. it has dropped quite a bit. historically, a lot of chinese companies would prefer to be listed in the u.s. the retail investor has a bigger appreciation. a lot of times in hong kong particularly, they require companies to be profitable. i think this valuation will be impacted because we see the alphabet in the metas of the world are listed in the u.s. it will impact valuation for many chinese companies. emily: how does this impact your choices and the decisions to invest in one company or another
that crosses borders or a china-focused company? >> i am still bullish on china. this is the second-largest largest economy in the world. it is a parallel universe, not only for internet, but so in terms of stock market exit. having said that, there is great venture funding still actively investing in china, so we cannot ignore this market. i think we need to be very careful and twice, there are no truly cross-border companies, but as an investor, if you want to invest in chinese companies, you need to think about longer-term exits probably will not be in the u.s., but rather in hong kong. emily: we were speaking about cryptocurrency earlier.
i know you are and investor in crypto. what is your take on what we will see this year and next year? >> i am excited about crypto. i am focused on investing in infrastructure software. crypto, i think a few predictions to begin with. for the last four or five years that i have been in crypto, i have seen crashes, and that happens usually in january or february, when there will be another crash, but that is typical for crypto. more interesting, in the last two years, the combined creek no market cap is to end at six $2 billion -- is $2.5 trillion.
and that has grown from $250 billion in 2019. my guess is we will go to $3 trillion. i think there will be a crash of bitcoin before goes to 100,000. i am counting on that. we are active in the defined space -- defi space. my guess is we will get to $200 billion. i am excited about that. i also predict that china will turn around in terms of bitcoin mining, but it will be highly regulated. hopefully daymond john will turn around -- hopefully jamie dimon would turn around and provide a solution. emily: we appreciate that. you mentioned the china crackdown. do you think the regulatory crackdown in the united states could slow that down in some of your predictions won't come true? >> in my head, it is a great thing that u.s. is trying to
regulate. longer-term, it is something for retail investors. i think all projects should be compliant and abide by it. regulations to me is a blessing of this industry. it is here to stay. emily: always good to have you. thank you for joining us. in other news, spyware from an israel group as been used to hack mobile phones of at least nine u.s. state department employees. they targeted officials based in uganda, focusing on issues regarding the east african country. the comes were notified by apple, which did not name the creator of the spy were used in the attack. coming up, 2021 has been a banner year for indian startups with record numbers of ipos. we will look at 2022 and what
emily: 2021 has been a breakout year for indian startups, companies have raised record amounts of cash, but now face challenges to grow bigger. we have taken an in-depth look at the state of play. ♪ >> it is young and youthful. it is called the silicon valley of india. 42% of startups are born here every year. it is a magnet for talent.
>> the startup scene is booming in india. this year, it has seen three dozen unicorns, private companies valued over $1 billion, and touch of this growth has happened in a time. >> the last decade and a half is a seachange. we live in a different world today. in 2006, she said we would have 10 unicorns, let alone to touching maybe 100 unicorns. that would have looked like that. >> there is an average of three unicorns every month. the system is maturing. >> india has set a record year of ipos. with the recent faltering and global competition, can they keep up this growth? >> unlike the old days when we had to build everything from
scratch, today, a lot of the infrastructure exists. the challenge is how to succeed in the business. the speed and execution is becoming even more vital. ♪ >> the technology story of india goes back five or six decades, when the government decided it needed a strategic location to start a lot of different related technology companies that would serve government, armed forces. since then, bangalore became the location for a lot of those companies, and to support them, a lot of educational institutions have come up around it. >> it felt the defense industry
as it was considered a safe distance from pakistan and china. in the early 1980's, smaller private companies began to shift operations. in 1981, with initial capital of $250, seven engineers set up the business, marking the beginning of the private tech industry in india. today, it is one of the biggest companies in the world with a market capitalization of over $95 billion. >> it is india's original start appeared infosys began in 1981. it wasn't a socialistic era when india was not really that friendly towards business. we had many, many challenges. for example, just getting a telephone connection would take two years. to import even a single computer, you have to go to new delhi to get a license. even if you had to make a small change in the configuration of the computer you purchased you
have to go back and get the license changed all over again. >> then came economic liberalization in the 1990's. the government deregulated markets and reduce taxes and import tariffs. infosys and other tech companies thrive. in 1993, infosys went public in both a campus in bangalore. with the technology boom in the 1990's, people from all over india came to bangalore to work or study. ♪ emily: just some of our special report on india's tech startup scene. you can catch more on bloomberg.com and quicktake. that does it for this edition of "bloomberg technology." stay with bloomberg. my colleague david westin is next with wall street we i am emily chang incenses go. have a wonderful weekend, everyone. this is bloomberg. ♪
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david: if it is not one thing, it is another, troubling news with covid, troubling news to fight inflation. this "bloomberg wall street week." this week, larry summers on the fed response to inflation he has been asking for. larry: i was glad to see him advocate retiring the word transitory. david: and our guest on the new paradigm for doing business in china. what you need to know as an investor. >>