tv Bloomberg Technology Bloomberg April 8, 2022 5:00pm-6:00pm EDT
>> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology," with emily chang. emily: i am emily chang in san francisco, and this is "bloomberg technology." coming up in the next hour, russia attack on civilians, and a train station being used for
evacuation. promising war sanctions and financial aid read we will have the latest. >> let's get this party started. emily: we will also take you to the latest on tesla's cyber radio in texas, where elon musk inaugurated his newest factory. that is next. and the toll on china's lockdown on its economy. what does it mean for china's competitive advantage and more? all that and more next, but how investors continue insight in ukraine and the lockdown in china. let's go to kailey leinz. take it away. kailey: your big underperformer for your tech stocks, the nasdaq 100 finishing 1.4 percent lower. a lot of that had to do with the selloff that we saw in bonds. 10-year treasury yields by four per -- four basis points, and
chips once again ending in the red. let's end with tesla, falling about 3%, one of the reasons why you saw the nasdaq 100, tesla obviously a huge weight there. and also following the broader market lower, even though you have details on the cyber truck, it was not enough for the stoxx p the nasdaq 100 had a rough day. the golden dragon index. it has been difficult, that index down almost 5%. as investors way, what more lockdowns could mean for china's economy? you can see that filtering through to its technology sector. emily: all right, katie greifeld, thank you. i want to turn now to the war on ukraine, a horrific attack on civilians that left at least 50
civilians dead, including children. a critical hub for transportation. annmarie hordern, widespread condemnation from the international community. annmarie: yes, absolutely. we should know russia said they were not responsible for this, but all fingers are pointing to moscow when it comes to this missile attack on a train station, emily, as you say, this is what civilians are using to evacuate some because you do have russia changing course and focusing troops on eastern and southern ukraine. and the president of the united states took to twitter and had this to say. he said the attack on the ukrainian translation is yet another horrific atrocity committed by russia. so i think civilians who were
trying to evacuate and reach safety, he went on to say, as many leaders have, that they will continue the security assistance for weapons delivery. we should also note ursula von der leyen from europe was in kyiv herself today and said russia should expect rolling sanctions. emily: let's talk about those sanctions. what further sanctions could we see? what if there left of sanctions, at this point? annmarie: that is a great question. they have the package they pretty much sign on the dotted line. this package coming from the eu is a ban on russia's coal imports. it is not a lot of money, ursula von der leyen put at about $4 billion, but it does start to target something that for many european countries is going to be off limits, and that is going to be russia's fossil fuels. you have the polish investor saying today in brussels we are already preparing work to target russian oil, russian natural
gas, as well as nuclear steel. this is the lifeblood and lifeline putin has left in terms of the money he is able to get from those sales. it is about 320 billion dollars this year alone they will make on sales of commodities. emily: we will also be following the aftermath of this cyberattacks, again, reportedly from russia on finland. talk about the significance of this. annmarie: this comes at a time when we see the shift in finland, and they always kept the door open if they were to join nato. as they were discussing this out in the open, especially finnish media, as well as zelenskyy, the president of ukraine, is addressing finnish lawmakers, you have the cyberattacks on a number of government websites. i was literally just talking to, checking my phone for responses from a finnish official who said they are used to these type of
cyberattacks, and they are preparing for more, on potentially something they used to be preparing for, as they discuss whether or not they should join nato. russia has made it clear, putin does not want them, it does not want sweden in the nato alliance. emily: all right, bloomberg's annmarie hordern, thank you so much for all of those updates. i want to switch gears and gateway story we have been covering all week, and that is elon musk. thursday night, the tesla ceo held a rodeo event, the opening of his newest factory in austin, texas. elon: and now let us deliver our first tesla cars made in texas. [ cheers and applause]] emily: at this opening, which is more hollywood been silicon valley, production falls way behind his schedule. learning is now is bloomberg's
sean. i think i saw people crying? sean: yeah, you are right. emily: [laughs] sean: people were excited to see the hard work they had put come into fruition, and the fact that they were able to get this stuff so quickly in such a short amount of time is really something we don't see too often here. it is something tesla did in china with its factory there. i think all of those factors were overwhelming to some people. emily: so does tesla need this factory to keep up this torrid pace? sean: yes, frankly. they still have some room to grow in china, and that has been a huge boon to them. it has been a main reason they have been able to grow their valuation and their deliveries as much as they have over the last two years. but they are nearly at capacity at the factory in fremont,
california, which elon has said they land to try to find a way to expand, although it will be tough for them to do that. they don't have a lot of land there. one thing they do have here in texas is a lot of land. they bought far more land than even this matt factory -- massive factory taking up right now, so they have a lot of room to grow. even the graphic he showed last night, the plans for it, is probably about 1/4 of future product. even though they plan to make up to 30 number model y's per year, there is even a potential for more. emily: elon musk is made a habit of throwing some of these launch parties. i have been to some of them at the fremont plant. what does he get out of this? is it just, you know, his version of marketing? sean: yes. [laughs] simply, yes.
but there are a couple different angles that they played in one of them is simply sort of just appeasing the people here who have been following along and help facilitate is happening in the first place. there were a lot of kudos there now to local government officials. austins mayor steve adler was invited, though i don't think he went, because he had contracted covid. if there were a lot of schools and workforce development groups helping build this recruiting pipeline into the factory. it really sort of helped acknowledge all the work that those people have put into it while also setting them up for a good relationship moving forward. and on top of that, it is really just, you know, this is part of what is tesla, you get these quarterly events, maybe once or twice a year, and they sort of feedback into the invite -- excitement, even though he did not say too much all that newsworthy compared to other speeches he has given in the past. emily: right. meanwhile, a different reaction at a different company, and that
is twitter, some twitter employees not happy about elon joining the board. and certainly not crying. the ceo will join a meeting next week. what are you hearing about this? sean: from what we have heard about the reaction that twitter employees have had is in some ways nice to see because you don't see people say no to elon a lot, at least within his orbit. people have strong opinions about him and negative opinions about him. within the executive legacy operates, we don't see a lot of pushback, at least publicly, so to hear that the employees of twitter were standing up a little bit and saying, hey, elon's behavior, sort of very public behavior on this platform has not really been in line with the sort of values that they are
expressing twitter to carry forward, so what it means for the platform's future to have someone on the board and controlling so much of the company. he seems to be able to operate outside of the bounds of what they really want to allow on the platform. emily: certainly a lot of unanswered questions there. bloomberg's sean o'kane, thank you. coming up, the toll of china's lockdown. we bring you the story of our own reporter who tells us he is running out of food. this is bloomberg. ♪ loomberg. ♪
my biggest concern right now is food. i am running short of everything, and i want to do a little peek inside my refrigerator. a looks so bad, but i have got to tell you a lot of the stuff is pretty old. i have got milk here. the expiration date is april 1. the expiration date is march 30. today is april 6. thank god i have a little bit of wine because i, think i'm going to need it. the biggest concern is how to get food. for us, you have to order online. in the evening, after 9:00 p.m., you go into the app and see what is available. you can see a lot of food, meat, vegetables already gone. we can't get groceries delivered to our apartment, because there are a lack of drivers delivering food in general, because of the lockdown. the number of cases continue to
rise in shanghai and union province. they are dealing with the lack of medical care, bringing misery. shanghai has hot spots, and they extended the 25 million people. the number of infections in the eastern portions of the city that were initially expected to be lifted. one question i am getting asks is why don't i stock more food. well, first is we were told that the lockdown would last from friday through tuesday, and it is already wednesday. i did not know that it was going to be extended. honestly, i could have gotten more meat and vegetables, but even before, it was kind of hard
to find. i have a lot of spam and the odd carrot. emily: "the odd carrot." bloomberg's allen wan under lockdown, like many in china. they are struggling to eat, get food, essential supplies, putting even more pressure on an already stressed supply chain. we're talking about this more with anja manuel, director of the national security forum. what is your take on this at scale? what does this mean for china? what does it mean for the economy? anja: nice to see you, emily. it means china's economy is coming apart at the seams. the growth rate was about 4%. that is not as high as they wanted. they think they will grow at 5.5%, but they keep having these
extreme lockdown spirit i think allen's story was hireling. -- harrowing. of course it hits all of the supply chains again. emily: the lockdown scum of the road closures, they are affecting companies, tesla and volkswagen have suspended work. do you see this having an impact on china's ability to attract global businesses, global manufacturing? anja: yeah, maybe not in the long term, but certainly in the medium-term. it is hard to run a business in china it every couple of months, you are going to get shut down. shanghai disneyland is closed again, foxconn, all of these big suppliers, american tech firms are once again shut down, which makes it really hard. i think it just accelerates the tech decoupling you see already, with western firms increasingly saying maybe we should look to the west of asia, or we should
diversify not entirely away from china, but we need to hedge our bets a bit. i think that is going to accelerate that trend. emily: there has already been a lot of pressure on chinese tech companies because of a crackdown by the chinese government on tech companies in particular. we see the chinese government perhaps tried to dial that back, giving u.s. regulators more information about these companies. but does this have a more sustained impact on china's tech world and its competitiveness? anja: it does. it has a huge impact, not just the lockdown, but everything is swaying in the direction of decoupling. you see a huge crackdown on chinese tech last year you and i talked about them. lifting people, telling people they can't do business in the united states under certain circumstances, and it is coming from the u.s., too. you mentioned the new s.e.c. ru le, which is if you are a
chinese company, you have to follow new accounting principles. they have three years to comply, but if they don't, we are going to delist you. we think it will continue. emily: we have not seen a distinct fear from china and its position on russia. of course china is under a lot of pressure from the international community. what do you think will happen there, and how will that influence the west's relationship with china and china's relationship with the rest of the world? anja: it is such a good question. it is interesting to see, because i think xi jinping and his team were surprised to see how brutal and gruesome putin's invasion of ukraine has been they have been vacillating for a week or two. now the politics have come out solidly in favor of russia. if you look at what was censored on the chinese internet, anything that is pro-ukraine is censored and taken down immediately.
all of the russian propaganda gets through. so on the political side, they are with the russians. on the business side, not so much. i mean, so far, we have heard, anecdotally, that all of the big chinese tech firms are complying with western sanctions on china, as are the big chinese banks, even though their government is saying, hey, you should be doing what you can to support the russians. i mean, a perfect example is the big taxi service, the sort of uber of china and announced right away they were closing in russia, then after pressure from the chinese government, they started back up the russian operations. emily: what does this mean, quickly, for the longer term, then? is it status quo for china's relationship with the rest of the world, or could we see a shift? anja: i think china will stay just below the level where they are going to be subject to secondary sanctions from the u.s. and europe. so they will keep playing this game. they will probably buy a little bit more oil from russia. they will try to help their
russian friends as much as possible without really running afoul with what the rest of the world wants. if you remember, emily, this is the year that xi jinping wants to be voted the forever leader of china, so he needs things to be fairly calm, at least until the fall. emily: anja manuel, appreciate your insights, executive director of the aspen security forum. when the votes came in, efforts to reform a union at the amazon warehouse in alabama were shot down. that is next. this is bloomberg. ♪
challenged. accusing amazon of not allowing them to talk about the union during work hours or to post about it. spencer, what is the labor union expecting here? spencer: yeah, so they are saying that amazon was inconsistent with its rules, that it allowed antiunion employees to discuss, you know, their reasons for not wanting a union, that they could post antiunion literature, but that similar things from the prounion side were discouraged and prohibited, and that some people were even fired, you know, for being prounion. so that is the beat on the union side, even though amazon appears to have won this, there are still several votes, several hundred votes that were disputed, that could be counted
and could potentially tip the tide of the election the other way. to preempt that, amazon actually filed its own objections as well, basically saying a lot of similar things as the union. emily: this vote was already a do over. how likely is it that there could be another do over? spencer: that is a great question. how long is this going to go on? [laughs] time will tell, especially if it is a challenged ballot, make a difference. that first boat was quite decisive. i mean, the union lost handily. but the national labor relations board said, look, amazon, you played dirty pool. we have to do it over. the gap has narrowed significantly. emily: ok, hang on, spencer, wet amazon has challenged the union win in the new york decision.
remember, that was reversed in that election that happened the very same day in new york. now amazon is challenging that. quickly, what does that mean? spencer: yeah, it was expected. there will be a lot of legal maneuverings, and things are moving fast right now, but amazon is basically trying to argue that the turnout was very small in that election and that a majority of workers did not, go for the union that really you had a small voter turnout, and they are saying that the national labor relations board got too invested in it. emily: bloomberg's spencer soper, who covers amazon forest, i am sure you will keep us up-to-date. thank you. coming up, the first-ever changes to the space station, nasa has successfully launched. we will bring you all of the details from the launchpad next.
>> ignition. go falcon. go dragon. godspeed, axiom one. emily: there is, the spacex falcon 9 rocket, taking up from the kennedy space center in florida in its first private mission to the international space station. let's bring in ed ludlow to talk about just how big a milestone this is in the private space race. bring us the details from the
ground. how is this? ed: another flawless execution. the crew are well after about two hours in the capsule, in orbit. they had their first space meal. as you know, it is a 20 hour trip from here in the cape up to the international space station. they are due to dock at around 9:30 eastern time on saturday, and everything went as planned. i sat here in the thunder and lightning on thursday night. the weather really cleared up. high pressure brought cold, dry air into the equation, and spacex were able to lift off on schedule on friday morning. emily: what is going to happen on the iss? are they going to meet russian astronauts? ed: this is the question. the backdrop is the tension because of the war in ukraine. there are three cosmonauts on board. official told me that if the
cosmonauts invited the astronauts to dinner, they could go across and have dinner, but there are bigger issues. here is what bill nelson, administrator of nasa, had to say. bill: even with the terrible things that vladimir putin is putting on the ukrainian people, i expect the professional relationship between astronauts and cosmonauts to continue. ed: the point that bill nelson made is the same that leaders made on thursday. whatever is happening on earth, in space, there is peace, and there is a professional relationship between nasa and rosneft, and none of the officials i spoke to thought that was going to change in the near term. emily: give us a bigger picture. axiom is not just about sending rich people to space.
a ticket costs $55 million. what are the bigger ambitions? ed: part of this axiom plan is to send their own private international space station module up in 2024. that module attaches to the existing international space station, and they develop and upgrade it time. as you know, the iss has a shelf life. it is due to be decommissioned in 2031, and the orbit to crash into the ocean somewhere here on planet earth. this is about nasa passing the baton to the private sector. it cost nasa $4 billion a year to upgrade and maintain iss, and they want to have the private sector take on that cost burden, but also the development and upkeep burden. in the future, we would have a private or commercial space station in lower orbit. that frees up money for nasa to do other things. as you know, the priority is the
moon, and then morris. -- mars. emily: what about spacex itself? we just saw elon musk inaugurate a tesla factory in austin. what does this mean for the spacex part of elon musk's empire? ed: the axiom mission here at the kennedy space center -- spacex is not preoccupied with these smaller objectives of getting folks to and from earth to the international space station. they have these contracts with nasa. they were just awarded more missions, but elon musk has his sights set on morris. they are developing the next generation launch system in starship. they hope to test on orbital test at some point in the next six months, and their ambitions are greater than that. but in the meantime, this is another example of spacex dominating the market for launched orbit. they account for 80% of the
payload sent into space right now. we talk a lot about russia in china as space powers alongside the united states. really, it is spacex that dominates the market, and star link is taking satellites to third parties. we think this is a good moneymaker for them. we know from the interview on thursday axiom has sold out, and they are probably going to sell out pretty soon for the fourth one. it is an interesting dynamic for spacex that has a much bigger picture design. emily: ed ludlow on the ground in cape canaveral, florida. thank you for your updates. coming up, as bitcoin 22 draws to a close, we will be joined from the ceo of black street, live from miami, to talk about one of the biggest crypto conferences in the world. that is next. ♪
emily: bitcoin trading lower for the fifth consecutive day even as bitcoin 2022, one of the crypto industry's biggest industries -- industry conferences is going to a close in miami. what is your read on this? sonali: what is the catalyst? what is going to drive bitcoin higher not only this year, but to where it was last year? we have days of declines.
we are back down to $42,600 or so. remember throughout march we got a little higher than that. we did get to $47,000, $48,000. but we are above $40,000. there is not the same fear of it really going much lower. there is a lot of conversation about legitimizing the asset. more companies using the lightning network, that was a huge story this week. at the end of the day, it is not just about the same people who are picking up bitcoin, the lightning network, at a marginal rate. it will be about companies and countries adopting bitcoin as the asset class starts to mature. emily: i want to bring in our next guest, who is joining us from bitcoin 2022 in miami. adam, you have been a player in this industry for such a long time.
i am curious -- what is the move after the many, many years who have been in the crypto industry? and how much do you think is changing in this moment? adam: i think something like 25,000 people present at a very big venue, high production values. introducing bitcoin to many more attenders and a bigger audience. emily: you are working on something new and interesting with block, powered by tesla solar, a new mine. tell us about the details, what you will be doing there, and what it means from an energy perspective. adam: it is a joint venture between block stream and block, firmly known as square. solar is providing the infrastructure and providing the tesla gige pack, a solar
battery. it runs not just during the day. what that means for the energy infrastructure is that it is a step for us to -- we looked at what people have brought forward, and we thought we would actually yield it alongside block. bitcoin mining can help make new power projects, make projects more cost-effective, and therefore easier to finance and physically build the energy infrastructure for the future. ed: -- sonali: how do you feel about the ability of bitcoin to become more energy efficient especially as the ethereum is so focused on energy efficiency? adam: i think that is a mistake in the sense that if we look back to gold historically, society looks for money.
what made gold the good money was the relative scarcity and inherent cost of extracting more, mining more. something which does not have that come similar to a share in a company, or like a fiat currency like the u.s. dollar or the euro, so i think it is very difficult to imagine that kind of currency reaching global acceptance is the new digital gold. sonali: you mentioned your work with block. we interviewed alyssa start of lightning labs, jack dorsey a backer for her company, and i am wondering what impact you think storage is going to have on the adoption of bitcoin across the world. adam: it is interesting. sometime last year, he made the observation he thought the most important and useful place to
use his time on earth was with bitcoin. he stepped down as ceo of twitter to devote his energies to bitcoin, so i think that is very positive. emily: i want to double down on your thoughts with a theory them, that original white paper written with no commode of those many years ago. if you are not bullish on etherium, how do you see the crypto market playing out? where are we in the next 10 years? adam: i think bitcoin is the investable asset class, and the other smart currencies are more like startups or services, and not really an asset class. i think the utility token concept, the fundamental value of those tokens should be much lower. there is an investor who wrote
an analyst report that looked at the business economics from an investor decade of such chains, and the fundamental business value of the tokens, and concluded that they should be sort of just in time, which does not make sense economically. so i think the valuations are sort of out of kilter, and sort of kept afloat by regulation, basically. sonali: the tesla magapack is powering a block stream mining site. what impact do you think elon musk will have on the future of bitcoin, moving forward? adam: i think he has famously acquired bitcoin himself and through a number of companies. he is certainly a big long-term
holder. and we are excited to bring tesla into the mining space for the acquisition of the mega pack and the installation by tesla of the solar arrays. emily: i'm curious what you make of the evolving relationship of elon musk and jack dorsey, with both of them playing a big role in the crypto community, crypto twitter, a huge community, and elon musk know joining the board of twitter with jack dorsey's support is the largest shareholder. adam: there were unfortunate incidents with twitter's mediation, deplatforming. it got controversial. i think he will be a positive improvement for twitter.
sonali: you mentioned about the valuations, bitcoin held artificially where it is right now. where do you think it goes to the end of the year, and what do you think will take it there? sonali: -- adam: it is surprising to me it is not already a lot higher. many of the metrics and the news flow throughout the year are bullish indicators. the number of net coins moving off exchanges, which gets the large buyers, pool of potentially bought coins, the news flow of new etf's in various countries, new financial institutions providing related financial instruments. there is a lot of positive news flow. i think that the current bitcoin price range is to do with similar factors that are
affected by ukraine and the covid economic effects, and so forth. emily: blockchain ceo, a pleasure to have you, along with sonali basak. also to come out of the bitcoin conference, peter thiel called warren buffett, jamie dimon, and larry fink members of a finance during talk received. he said they are opposed to a revolutionary youth movement that embraces bitcoin. he blamed the finance tightens for the digital currency's failure to hit $100,000. coming up, turning bearish on robin hood. the company's biggest cheerleader for its ipo is now saying cell. that is next. ♪
>> for the third year in a row apple will hold its annual developer conference virtually. that means developers and apple watchers need to tune in online to watch the introduction of iowa 16, mac os 13, and other new software and services. the one new wrinkle this year is that apple will allow a small number of students, developers, and members of the press to watch the keynote videos from apple headquarters. still, all developer sessions and other aspects of the conference will be online only. despite its virtual nature, i'm still expecting a fairly jampacked conference. i'm expecting a fairly significant update with iowa 16, including changes to notifications. there also should be major fitness tracking and health upgrades for the apple watch. for those expecting some major ios overall, the last being a decade ago, i would not hold my
breath, at least not this year. apple is also likely to launch new max, and this may include a major revamp. that would be the biggest upgrade in history. apple has a history of announcing new max -- mcas at the conference, including the transition to apple silicon. i also expect apple to hold off on showcasing its mixed reality headset until next year at the earliest. there may be a preview of some new arm vr software to get the show rolling. i am mark berman. emily: you can survive -- subscribe to the weekly power on newsletter. sell robin hood. that is the message from goldman sachs. it comes less than a year after the much-hyped ipo. the news because the stock to sink even lower, down more than 80% from its post-ipo record high. for more on what it all means,
what -- why is goldman of all companies saying cell now? -- sell now? >> it is awkward because goldman did lead the ipo, but analysts have downgraded the stock to a sell from neutral. what they said is the path to profitability is looking pretty fraught for robin hood and it would take a lot for the company to achieve profitability by 2023. emily: what has changed since the ipo? has something going wrong? annie: the trading environment has changed a lot even in the last year. we saw an enormous boom in retail trading that happened over the course of this pandemic, and really escalated during the gamestop run-up that happened in early 2021. that was all happening in the lead up to the robin hood ipo at that happened in july of last year. what has happened in the intervening month is trading
activity has continued to taper off, and retail trading is at like 17%. equity and overall market volume, where you saw it more like 24% in those feverish days of the meme stock runoff -- robin hood is contending with this question of how it will earn money beyond just pure transaction volume. emily: where is robin hood saying growth is going to come from? they have been talking up crypto since the ipo, building out crypto problems. -- products. could that be it? annie: one thing robin hood has pitched, as many fintechs have come is that it could become a financial supermarket for customers, offering more than mere trading, and moving into areas including retirement accounts, expanding its crypto offering, and it has been making
strides toward some of those goals. so just this week, robin hood did open up its crypto wallet product and had a waitlist going, and it is beginning to offer that product now. and it is working toward those other -- some of those other pitched products, such as retirement accounts. but the big question remains whether robin hood customers want all those products from robin hood specifically, or whether they might be getting those services from other apps. and it is a big part of robin hood's growth strategy to sell their customers on more than trading all day. emily: the robin hood bulls who are still out there talk about gen z in the future of a rising generation that is going to be investing more. could that be robin hood's savior? annie: it could be, but it
really depends. right now, they are dependent on trade volume. they want to diversify away from that. the question remains whether they can and whether the customers will come. emily: annie massa on robin hood's struggles. thank you for that analysis. that does it for this edition of bloomberg technology. david westin is up next with wall street week. don't forget to check out our new podcast as well. you can find your daily bloomberg technology everywhere you get your podcasts. have a wonderful weekend, everyone. this is bloomberg. ♪
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david: a ukraine war even more brutal than we imagined -- putting in perspective other news of a regime fed and the omissions of the world's richest man. this is "bloomberg wall street week." i'm david westin. this week -- larry summers, on where we go from here. larry: the next couple of years, it's clearly more likely than not. david: and more on the good news for emerging markets. >> commodity prices seem to be doing