tv Bloomberg Technology Bloomberg December 9, 2021 5:00pm-6:00pm EST
plus, george kurtz as competitor microsoft customers are losing trust in its cybersecurity protection. we will get a response from microsoft. doesn't apple have enough gas in the tank to continue its car points? we will explore the answer as engineers continue to switch gears. all of that any moment. let's look at the markets. u.s. stocks falling at the economic threat of restrictions to control the variant, outweighed optimism about the efficacy of vaccines. kriti gupta joins us now. it is all catching up. >> it absolutely is. the market getting hesitant about what should be believed about the omicron variant and what should not. a lot of mixed signals of what is happening abroad and what is happening here. we are also coming off a three-day rally. it is only natural for the stock market to let off steam. that is what happened. it led to the downside by the nasdaq. yields and the dollar we want to pay attention to. we get the cpi report tomorrow.
the yields, tech relationship is something we want to watch. we want to watch the dollar-tech relationship. do they move together? something to keep an eye on. we have to talk about bitcoin. check out this terminal chart. bitcoin, trading sideways, stuck between two major moving averages, the 200 day and 100 day. tesla analysts are saying this is not a good sign, this could be a head and shoulders pattern signaling bitcoin has further to fall, even further than the retreat from the 50,000 level. let's get to intraday movers. it is not just the macro story. . we are watching earnings after the bell. broadcom up 6.3%. this coming after they not only beat their earnings, they announced a $10 billion share. the cherry on top of the sunday, raising their quarterly resin -- revenue to $4.10. i'm going to show oracle, a similar story, authorizing a $10 billion share buyback.
also beating the earnings. not one driven by the 22% increase in their cloud business. she we, not getting the message, missing their earnings on the top and bottom line. the stock suffering 8% after hours. emily: thank you for the roundup. covid-19 hospital admissions are rising in many parts of the northeastern united states. government data shows in 12 states and washington, d.c., the seven day average of admission was confirmed -- with confirmed cases has climbed at least 50% in two weeks. the states with the biggest jumps, connecticut, new jersey, vermont, rhode island, along with deceit drew armstrong who leads our health care team joins us with more. how worried should we be? drew: what we are seeing now is this bump that in many ways, echoes what happened last year at the beginning of the holidays. people got together for thanksgiving, they are being driven inside by the colder weather, and all of those things are mixing and mingling, travel, people being in enclosed spaces.
that will lead to an increased level of spread. that tends to be followed by increased hospitalizations. it looks like we are on the cusp of a winter wave. emily: we are getting new guidelines by the day. the world health organization's adjusting we don't mix and match vaccines and boosters. people are already doing this. what is the take away? drew: i think there is a lot of mixed information. there is data that shows efficacy in mixing and matching. i think in reality, a lot of people will get whatever vaccine is available. i couldn't tell you the name of the manufacturer of the last flu vaccine that i got and i get that every year for different strains of the flu virus. i think the story of this pandemic has been often shifting, often changing, often changing guidance. and that is certainly going to continue. emily: johnson & johnson ceo was
on bloomberg television with our colleague earlier today, talked about omicron and what we are learning. take a listen to what he had to say. >> we want to start to see how well the omicron virus be impacted by the current vaccine? look, again, we are encouraged by some of the data. we need to determine exactly what the efficacy profile will look like. but right now, we are already working on a next generation, should that be necessary. emily: are we going to need a new vaccine, new booster, for every dangerous variant to come? drew: in all likelihood, no. one of our colleagues has a story out today, pointing at the real problem of trying to chase variants with boosters. you are always, always, always going to be behind. combine that with the fact that you have seen i think some decent protective data for people who have had booster shots already, you are always
going to be dealing with a degree of new variants, vaccine escape, decreasing immunity over time. when you talk about the booster versus variant thing, you really can't do it. the variants are always going to rise faster than the ability to get the boosters out to people. it is not a viable strategy, if it becomes a necessary one. thankfully, the protection data for people who have been boosted versus this variant looks decent enough. emily: omicron is one we are tracing now. thank you very much. later this hour, more on that exclusive interview with the ceo of johnson & johnson, alex gorsky. you don't want to miss it. apple's top secret car project has lost three more top engineers. the latest pump in the road for the iphone maker's car ambitions. the departures include a manager on the hardware team, apple's chief radar engineer, and a battery group manager as well. all of them, moving on to startups.
joining us for more are ed ludlow who is in l.a. today, and what do we know about the series of the affection? ed: it is interesting where they went. two went to aviation and another went to joby with our battery elected -- at her electric personal flying taxi startups. i would not draw much into that. but this has been a year where the apple card project has had a number of high profile departures. the most important being dug field, leaving that project at apple, and ended up going to forward it to be ford's chief technologist. there is so much interest for this project. i love the image, because we don't know much about the car, but what we keep hearing is there is a merry-go-round of executives there. emily: what do we know about the design or product that apple is working towards? we still don't really know a lot about the endgame. ed: there is an important bloomberg scoop last month, that apple has made a firm decision to make a vehicle that is fully
autonomous. think about what gm crews are working on, a vehicle that has no steering wheel, no petals. they have not been sure, according to sources, whether to go that route or one you can drive yourself. they are going in on full autonomy. the aim is to have something by 2025, which is super ambitious. emily: can apple really bring a car to market by 2025? especially when moving all of these people? ed: this week, morgan stanley the price target. and a lot of the enthusiasm is that apple, when it says it will move into a new product line, it does really well. later, it is reflected in their financials. we are heading toward a $3 trillion market gap -- cap. and a lot of that is the excitement that they could. apple has real expertise in software. some of these departures are in key areas. battery, radar, the things i go into an electric self-driving vehicle.
it is negative news to know there is a turnover on the team, but the consensus is they have the expertise to do it. as we inched toward $3 trillion market cap, that could be one of the big drivers for the stock going forward. emily: ed ludlow and l.a., we will see later in the show. thank you. coming up, what the future of crypto holds. we will be joined by the cofounder of lightspeed venture partners, which is accelerating its investing in crypto infrastructure and the blockchain, to talk more about that latest crypto hearing on capitol hill and trends in the coming year. that is next. this is bloomberg. ♪
potential way to address a number of these issues, making it easier, cheaper, faster, and more equitable for people to do what they need to do to manage their financial lives. >> shouldn't we take seriously the possibility that algorithms that open software and take a measure of human error, read negative -- read negligence, fraud, and bias, might make the system better on net, even if there is some new risks being presented that need to be understood and regulated? emily: lawmakers seem to agree that crypto has a promising future but cannot agree about how to regulate it. a day after crypto executives testified in washington, it is clear congressional leaders are wrestling with how to bring the more than $2 trillion market under government oversight and new legislation may not pass anytime soon. for more, i want to bring in ravi mhatre. great to have you back with us. what are your key takeaways from
that hearing we just saw? ravi: first off, thank you for having me on the show. yeah, we think it is great that the crypto and -- crypto industry is engaging in dialogue with the government about regulation. i think like in other emerging sectors, it is important as crypto and blockchain technology start to hit mainstream that the government does understand, and i think the crypto industry agrees, that regulation is important. there needs to be safeguards for consumers, but the regulatory framework is going to need to be different because crypto technologies and crypto tokens are not exactly the same as traditional financial instruments. so there needs to be a delivered approach. i think another important point that came up in this discussion at the hearings was the fact that overregulation is probably as dangerous as under regulation.
under regulation could create risk for investors and consumers but overregulation could stifle innovation. i think there is a lot of commentary about moving the innovation overseas. right now, in the u.s., you have some of the brightest minds working on lots of new ideas. but has always been advantage for america, the ability to come up with new ideas that then spreads to the rest of the world. emily: right now, we are looking at no regulation. how concerned are you about crypto startups and talent moving overseas? ravi: i think the regulatory environment, to date, has been unclear. two things the government could do, work with the industry to define a clear and unified, a single framework, so crypto companies understand what the regulations are. i think that will increase the likelihood that innovation continues to happen and accelerate in the u.s., in particular. i think the government really
understanding, in particular, with these things called stable coin, where there has been concern and ideas that perhaps the government should control all stable coins as a way of regulating. i think that is a place where overregulation could hurt innovation. and the crypto industry has proposed other ways that regulation could happen with a lighter touch. and so we will see how that discussion plays out. emily: we have gotten a check of some of our guest's outlook and predictions for next year. listen to what they had to say. >> the moon is the bear case for crypto. we are going to other dimensions with bitcoin. i think people need to hold on. we are still early days, still early in the cycle. i think we could see $100,000 plus a coin late this year, early next year. >> for the last 4, 5 years i've been in crypto, i've seen three crash and usually that happens
early in the year, probably january or february, then there would be another crash. it is typical, another day in crypto. i think there will be a crash for bitcoin. >> investors are going to be looking at>> etherium, they will be looking at solana, they will be looking at polygon. we are seeing a lot of investors who put their toe in the water with bitcoin in 2020. emily: doesn't look like we are getting to $100,000 anytime soon , or at least not before the end of the year. what do you think? could there be a crash in january or february again? ravi: as i've seen, we have been investing in crypto since 2013. we made our first investment in a company called ripple, which is a large token today and also block -- also blockchain.com. we have seen three or four market cycles in crypto and in bitcoin.
the past is not always a predictive -- predictor of the future, but there could be more volatility and upswings and down swings in the future. it is hard to predict the timing. in the long run, i think we along with many other investors are bullish and optimistic that the penetration of crypto, we have only scratched the surface. i think there has been 10,000,005 users and only a few hundred million people in the world who have bought cryptocurrencies to date, including bitcoin. if you look at the number of people connected to the internet or who have smart phones which is in the many billions, the opportunity for growth in crypto is massive. could bitcoin go to $100,000 or so passed $100,000 in the future? i think the market size, the potential market size would support that. emily: all right, lightspeed partner, ravi mhatre, great to have you back on the show.
california representative brad sherman has become an inspiration for crypto token creators after making fun of the competitive world of digital assets at the congressional hearing. take a listen. >> now, number one threat to crypto currency is crypto. bitcoin could be displaced by either which could be displaced by dogg, which could be -- doge, which could be replaced by kober going. what could it do to crypto coin? emily: the internet rolled within and several tokens seen around the fictional mongoose coins were minted overnight. coming up, protection from potential attacks. microsoft seizing 42 sites linked to that. we will speak to an executive about the wind and who planned -- who they plan to attack next. this is bloomberg. ♪
emily: earlier this week, microsoft announced it disrupted the activities of a china-based hacking group dubbed nickel. 42 sites seized. microsoft says the attacks were likely to gather intelligence from think tank and human rights groups. to discuss, we are joined by microsoft security and identity corporate vice president. thank you so much for joining us. what more detail can you give us about the folks the hind this network of websites, what attacks they have already carried out, and what they planned to do? >> thank you so much for having me, emily. microsoft announced this week that we took down the china-based hacking group, nickel. this has been a big week for fighting cybercrime for microsoft and our industry as a
whole, and in particular, i'm proud of the partnership we had across the private and public sectors. what nickel was doing was they had malicious websites and they were using these websites to get access and intelligence from think tanks and governments and humanitarian organizations from the united states as well as 28 other countries. by cutting off their access, to these websites, we were able to protect the victims. this is a strategy, a legal strategy that microsoft has used before to protect against thousands of websites. we continue to look forward to do this in the upcoming years. emily: you have provided conflicting accounts of whether ransomware attack's are decreasing through the second half of the year. we have not seen as many as we did in the first half. does microsoft have any insight on that? vasu: we see a sophisticated cybercrime situation right now. in the last year, we have seen some of the most sophisticated attacks, the most frequent attacks as well. some stats to share, we have
seen 150% increase in ransomware in the last year. since march 2020, we have seen a 667% increase in phishing attacks. we don't really see cybercrime stopping. we continue to see that advancement across financial crime, as well as nationstate. a mind-boggling the 579 password attacks every single second. that means there are billions of attacks happening in a year. emily: you would say ransomware attacks are going to continue to accelerate? vasu: i believe ransomware is the number one threat that is -- that is being faced today. it will continue to escalate as we have more and more digital surfaces coming online. emily: earlier this week, the ceo, george kurtz, joined us on the show. he says users are learning trusts -- losing trust in microsoft. they put out a report.
i want you to take a listen to what he had to say. >> i simply hope microsoft is able to address some of their issues. we want the best security for the entire landscape. at the end of the date, it is still a big problem. a lot of the software they have is causing issues. their technologies are not able to keep up with defending against those attacks. emily: what is your response to that and what are the attacks to microsoft, exchange server say about cybersecurity and microsoft products? vasu: thank you for sharing that with me. first, i want to reiterate that we are in one of the most sophisticated cybersecurity situations right now. we see attackers who are persistent, who are resilient, and they are relentless. we see attacks coming from everywhere. i shared stats about the 150%
increase in ransomware, 667% in hishing. -- phishing. they come from everywhere. they come from a click on a link. it can happen to anyone. every single person, every single organization is one that it will attack. to say anything else otherwise would be irresponsible. microsoft's philosophy has always been tmer centric, to focus on our customers, deliver solutions and empower them and protect them. and we work with our community. we work with more than 200 security vendors across the board. they are part of our microsoft intelligent security association, to solving the problem at hand. it is really unfortunate when some vendors disparage other defender -- some other vendors. now is the time to solve the problem and fight cybercrime. ultimately, i believe trust is about -- sorry. emily: finish your sentence. vasu: sorry, trust is about who
you choose to be on the journey with you, and in the case of microsoft, we have 650,000 security customers, who have chosen microsoft security. increasing 50% year-over-year, that is about trust. emily: speaking of working together, what do you think the appropriate role of microsoft is in helping to bring cyber criminals to justice, given what the administration is doing? just a quick answer, please. vasu: we are working across the public and private sectors for that. there are multiple things. one is offering comprehensible solutions, which we do. second is building foundational security into the products, using a zero trust architecture. the third one is creating awareness and scaling. we are working with community colleges, and we announced a major cyber scaling initiative working with the government to train people on cybersecurity. emily: microsoft's vasu jakkai, thank you for joining us. appreciate you joining us on the show.
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emily: welcome back to "bloomberg technology." i am emily chang. i want to get back to the markets and earnings from a big chipmaker, broadcom reporting after the bell. ed ludlow back with the latest from l.a. how are the numbers looking? ed: a super bullish forecast for the current quarter. there is elevated demand from smartphone makers. r.o.e., is one of apple's key suppliers. that is interesting read across. it comes back to this issue of supply. they are saying the inventory levels are very lean, and that lead remain expended, which is
interesting because we know that in the month of november, the lead time for semiconductors, the time between placing an order and receiving a chip, you see there on your screen, grew to almost 23 weeks. the situation does not seem like it is resolving too quickly. global supply chain watchers are a worrying sign. emily: you are in the port of l.a. tomorrow covering the supply chain crisis. what more will we hear from you? ed: i'm excited to be in the port of valleyed: 40% of the containers that come to the u.s. go through that port. the data is pointing in the wrong direction. ships in the san pedro bay outside the port are spending more time than ever waiting to enter the port. and be unloaded it is a really worrying sign, not just ahead of the holiday season and inventories, but going into the new year where retailers stock up after the holiday rush. there is so much going on, so many reasons behind it, and we are going to get the -- get to the bottom of it.
we are going to ask, how do we get the supply chains fixed long-term? emily: we will be watching you tomorrow. thank you. now a truth in the streaming wars, roku will be extending its agreement with youtube and youtube tv. roku had pulled at the youtube tv app from its channel store back in april after the company's failed to agree on terms. i want to talk about that and more with andrew mccollum, ceo of the streaming tv service philo. great to have you back with us. it seems like these are tit-for-tat, these public battles over streaming rights and ads splitting and have become commonplace. what do you make of this resolution between youtube and roku? andrew: i think there has been a lot of scrutiny and public commentary about the behavior of the mobile app stores, where apple and google and the rules they set on their platforms and whether or not they are act thing -- they are acting as gatekeepers. you have not seen the same scrutiny on streaming devices,
although you have all of the same issues, in fact even more. as you mentioned, it brings in this element around advertising and other details that are unique to streaming services. as it relates to google and roku, i think it is not surprising they came to an agreement, because youtube is such a powerhouse. you really just cannot have a streaming device that does not have youtube on it. i think you are starting to see these battles on those app stores on the streaming devices coming more to the forefront. i think that will only continue because the issues are just as salient, if not more, than on the mobile app. emily: who is going to come out on top? andrew: in all of these situations, the device makers, in this case roku and amazon, primarily hold a lot of power the question is, what are the ways they can wield the power without being called out on it either by political forces or by market forces? a lot of people who use
streaming devices don't realize what a premium they are paying for essentially because these companies are charging a toll and a tax to be available. emily: how do you think this will evolve? andrew: i think you will continue to see these tit-for-tat battles in the near term. in the longer term, i would hope that this is addressed through greater scrutiny and regulation. you should not have participants who are creating platforms also controlling platforms -- controlling what is available on those platforms and competing on those platforms. it creates all kinds of backward incentives and eventually, having some regulatory oversight and scrutiny of that is inevitable. emily: is content still king? andrew: i think yes. you have seen these battles be resolved basically because content was threatened to be removed, or threatened -- or actually was removed. i think that will continue.
but there is no one size completely controls the conversation. it is going to be a battle on both ways. i'm sure while google ultimately was able to do a deal, on positive roku gave up along that process and it is interesting, the way google's apps are present on roku indicates that because there is a lot of concessions that roku has made to make those apps available, so they don't allow other participants like philo to have. emily: i'm asking in part because i am a huge allows -- a huge yellowstone fan, and i found out you can stream season four on philo. how big of a deal has that been for you in terms of drawing new viewers? andrew: yellowstone has been a massive hit. philo is the best and lowest-cost way to watch yellowstone. it is a good example of the confusion there has been in the market. a lot of people know yellowstone is on paramount but not on
paramount plus. it is an example of these shows not on the direct to consumer services that content creators have made. the only way to watch it is on a live tv service like philo. it has been a massive boost for us. we had a huge amount of growth based on yellowstone. it is one of the biggest shows on tv. emily: let's justify the best on lowest-cost way to stream, you've got a deal for five dollars instead of $20 for the first month of service. how do you keep that argument up that you are the best way and cheapest way? andrew: philo is just five dollars a month, even without discounts and there are several deals that we have available now. even on a regular basis, there is not another live tv streaming service that has the channel selection we have. we carry 63 live tv channels for $25 a month. it was -- there is no one close to the -- close to that in terms
of getting a breath of content. we have grown quite a bit. we are not ready to announce anything today. hopefully soon. emily: what are the goals to bring in new subscribers? how do you do that? you don't have sports, we've talked about this. will you ever have sports, will you consider more niche channels like cricket and what we saw amazon do their? andrew: i think we have always taken a very data-driven approach, where we want to bring any content to the platform that is going to be valuable to our subscribers and preserve the choice we think consumers want. we would love to carry sports. it is the cost of that content that is hard to justify. you talk about acquiring subscribers. it is interesting the market has gotten competitive. . there are a lot of services that are spending a ton on marketing. i think some of that is irrational. it is not necessarily supported by the underlying economics that
those services are driving, both live tv services like ours as well as these new crop of direct to consumer services. it will be interesting to see how much that continues and how much wall street continues to encourage that behavior. emily: would you ever make your own content? andrew: i think it is possible. we have been successful working -- being switzerland, saying, we will carry the best content from anyone and we are not going to be competitive by creating our own. but i would not rule it out. emily: ok. andrew mccollum, ceo of philo, good to have you back here. coming up, it is the goal of just about any company, finding the talent of the future. my next guest has made a business out of it, literally. the ceo of neo joins me next to talk about his mentorship network that is placing big bets on young engineers before they even get their first job. that is next. this is bloomberg. ♪
emily: amazon has received one of the largest penalties handle -- handed out by a rate -- by a european regulator. it find the tech giant more than 1.2 billion dollars after an investigation into its logistics business. amazon was accused of abusing its dominant position by promoting its on fulfillment networks to the detriment of third-party sellers who don't use it services the company says it will appeal. with three weeks left in 2021, many of us are looking to what the future has to offer. my next guest has spent the last five years doing that with his company ne-yo, finding dozens of the best and brightest students they have identified as helping to build the future.
they just raised $150 million round where it focuses not only on engineers but potential founders and divers ones at that. joining me in the studio, ali partovi, longtime entrepreneur, angel investor, and the ceo of neo. great to have you back with us. ali: glad to be here. emily: 150 million dollars. where and how do you plan to put that to work coming out of a pandemic? ali: to clarify, we raised $150 million fund. our business model is essentially a vc fund. i would say what we spend our time doing is where -- is mentor our community. we try to find the top 50 most promising students in north america and try to help them take more adventurous paths in their career. help them either start startups or join startups. and hopefully help them become future tech leaders. emily: how do you identify these people, who are supposed to be the future?
ali: it started five years ago with me traveling around the country to campuses, not just harvard, m.i.t., stanford, but georgia tech, austin vanderbilt, and dozens of others. personally interviewing students. today, we have a whole distributed effort amongst members of our veteran community who do volunteer interviews, startups who do interviews who are eager to hire these bright students, and the interview process is something we have put a lot of thought into to enable each person to put their best foot forward and recognize each person might have different strengths. that helps us with a diversity. it is a rigorous technical evaluation. we are trying to find the founders of the future, top companies. i guess i will say, if you look at the top most valuable companies in the world, almost all of them were started by somebody who is an extremely smart -- smart computer
programmer. most of them are still run by somebody with a computer science degree. i have had the privilege of investing in some of these companies at a very early stage, facebook, dropbox. and i have had the privilege of also recruiting a lot of college students -- new grads to join them. neo brings together what i have done for two decades before. emily: any of the biggest tech companies were also founded by white men. neo, 45% of the funding so far has gone to women or people of color. i know you are proud of that. how do you find more diverse talent when we hear from so many leaders that it is hard to find? ali: i would agree with that. i think the starting point is the mental model. there are people who say something about the trade-off related to lowering the bar. i think that is a bit insulting, and it is an excuse. the reality is it is difficult. diversity in tech is a problem that means many solutions. starting at the elementary school level, all the way
through college, and into industry. for us, the concept of diversity is everything we do. our team, our staff is majority female and includes people of color. our veteran community is about 45% female and i think 15% or so black and latino. our interview process is very intentional about letting each person choose how they want to be interviewed, including fill in the blank. that allows somebody who might have stage fright in a certain format or have imposter syndrome to find something that will make them feel comfortable and put their best foot forward. emily: you have been sharing your own lessons as a founder. one of my favorites, the time that you say one dishonest word costs ua $50 million deal with steve jobs. talk to us about what happened and the lessons you learned? ali: this lesson was about the fine line between height and lying, which i think is the
subject being explored to this day in silicon valley. the situation was i was hoping to sell my company, and at that time, my startup was struggling. as a ceo, the job is to make people think it is not struggling. so you are inherently sort of ethically in questionable territory. steve jobs, our meeting went really well, and he said we would like to acquire you guys. we think we will acquire you for $50 million. i was thinking my job is to make that number higher. i was negotiating and said, actually, i think we are worth $150 million. then i made the big mistake, i added, no, i know we are worth $150 million. i did it in a town, in my mind, i was thinking, maybe he will think we have another offer. essentially, i was trying to mislead him and he saw straight through me and pounced on it and said, you are lying, you are full of poo poo.
emily: [laughter] ali: the thing i learned that has really stuck with me is if a person thinks you are lying, most if not -- most of the time, they won't say it to your face. they will tell other people but will not tell you. for me, i was grateful. i was like, may be other people will have the same opinion as me and i should think about correcting that. emily: you have invested in a lot of companies, including facebook. what you think the biggest mistakes are that founders are making today? ali: that is a tough one to summarize. i guess i would say right now, there is a ton of hype, and related to some of these things, like the stories i just shared, these are about vulnerability and showing that no matter how successful you are, almost everyone has some mistakes, some things that they are ashamed of. i think silicon valley right now, especially at this moment,
exudes too much hubris. i think it has a posture where much of the rest of the world does not like this feeling of one part of the industry -- one part of the economy acting like they are smarter than everybody else. and acting like they have everything right. i think a lot of, whether it is more successful executives or young people, are caught up in this effort of trying to pretend that they are perfect. part of my goal has been to show my own vulnerability, creating space for other people to do the same. i'm in the business of encouraging young people to take risks. and showing that you can make mistakes and still succeed helps give others courage. it also helps them feel more comfortable receiving advice. emily: don't pretend of poo
emily: as we heard earlier this hour, here in the u.s., the center for disease control has expanded its booster recommendation to 16 and 17-year-olds. that place is more pressure on vaccine makers to keep up supply as the world continues to combat the virus and its variants. my colleague, david westin spoke exclusively with the ceo of johnson & johnson and asked about the drugmaker's strategy. alex: i think it is important to acknowledge the great progress we have seen. clearly we have big challenges in front of us. if you think back to the uncertainty all of us around the world, let alone here in the
u.s. face 20 months ago, about what we have the vaccine, therapeutics, what would be the path forward, we have made a lot of progress. what omicron has demonstrated is look, we need to get everybody vaccinated. the sooner we can get everybody vaccinated, the more and more we are learning includes a booster, the sooner that we will be able to prevent these additional mutations and hopefully get through it. we remain absolutely committed to this. in fact, we are working real time as we speak, not only on our current version of the vaccine to get it out to as many people in the world as possible, but also on a next-generation, depending on what we find out about omicron. we believe it is going to take a collective effort of many companies, many countries, and frankly the world taking this on. david: what do you know at this point about the effectiveness of the johnson & johnson vaccine against the omicron variant? alex: we have a lot to learn. what i would say overall is we
need to perform additional testing. we know this virus likely transmits at a faster rate. that is not good. number two, we are trying to understand what it means in terms of the severity of the disease. we are encouraged by the other data that we have seen thus far regarding how the current vaccines, particularly when boosted, are reacting against this virus. we have to gather more data from testing in the clinic, from real-world evidence. we will know more in the coming weeks. we are encouraged by what we have seen. david: do you have any timeline of when you will have a better read of the johnson & johnson vaccine will work against omicron? alex: we should know in the coming weeks and have a better indication of how ours works against this particular variant. david: there is a lot of talk of next generation of vaccines tailored for omicron, other vaccine makers have been talking about that.
it is a different technology that johnson & johnson has. can you tailor make, can you change your vaccine to address omicron if necessary? alex: the short answer is yes. we are working on that as we speak. where -- what we want to see is how the omicron virus will be impacted by the current vaccine? again, we are encouraged by the data, we need to gather more to determine exactly what the efficacy profile will look like. but right now, we are already working on a next-generation. david: one of the things i've learned is there is a different profile for the johnson & johnson vaccine as opposed to the others. it does not raise the antibodies of protection as much in the early stages, but it may last longer. what do you know of the duration of the johnson & johnson vaccine? alex: we tried to discover, design, and develop this vaccine to really have strong durability over a long period of time. you are right. your body tends to have two responses. there is the antibody response,
think of that as like the first line of defense that you body musters to take on this virus. then you have what is called t cell and b cell, the longer term, that is what gives your body the memories that it can respond many years later that you see with other vaccines. some of the data that we have been able to pull together thus far does reflect that we have that very strong t cell and b cell response. we are studying that right now to say, how does not manifest itself in terms of durability over time? one thing we know for sure that this virus is not going to go away tomorrow. it is not only important to have a strong response immediately, but that 4, 6, 8, 12 months later, particularly in these other areas around the world where the logistics of getting multiple doses will be challenging. emily: johnson & johnson chair and ceo, alex gorsky. that does it for this edition of "bloomberg technology." tuna and tomorrow, we will be
haidi: good morning. i'm haidi stroud-watts in sydney. we are counting down to the major market opens. shery: i'm shery ahn in new york. welcome to "daybreak: asia." asian stocks set to follow wall street lower. traders are weighing the economic threat of virus restrictions against vaccine optimism. evergrande in default as a huge restructuring looms. the pboc says the crisis will be dealt wi