Speaker 1: From the heart of where innovation, money and power collive
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay. I'm Emily Chant, San Francisco, and this is
Speaker 1: Bloomberg Technology. Coming up in the next hour, micro Strategy
Speaker 1: makes another ten million dollar event on bitcoin, even as
Speaker 1: cryptocurrencies continue to slide, plus n f T sales getting
Speaker 1: a new low for the year. We will discuss and
Speaker 1: subscribing to Snapchat, the social media company announcing a new
Speaker 1: monthly subscription to premium content. But what does premium content
Speaker 1: look like on snap and well, customers pay three a month.
Speaker 1: Clause Maderna co founder New bar Fa, and we'll join
Speaker 1: us to talk about the future of the Crown specific
Speaker 1: boosters and why he's taking on the fight against climate change. Meantime,
Speaker 1: Michael Sailor is doubling down on bitcoin, micro Strategy buying
Speaker 1: another four eight coins worth about ten million dollars at
Speaker 1: the height of the crypto market collapse. According to a
Speaker 1: filing from the SEC, micro Strategy purchased the coins between
Speaker 1: May three in June for about twenty dollars and eight
Speaker 1: hundred seventeen dollars each. Blue Works Katie Gray felt with
Speaker 1: us now to discuss and not necessarily a surprise given
Speaker 1: our last interview with Michael, but still now even below
Speaker 1: it's so fascinating. I mean, the fact that you're getting
Speaker 1: this big whale buying at a time when no one
Speaker 1: really else is and Emily, like you said, and you
Speaker 1: know this very well, he's a true believer Michael Sailors.
Speaker 1: So maybe not surprising in this sense, but it is
Speaker 1: a little interesting if you look into the details. So
Speaker 1: this was micro Strategy smallest bitcoin by in over a year,
Speaker 1: and I mean, if you look at their entire ward,
Speaker 1: micro Strategy owns a hundred twenty nine thousand bitcoin in
Speaker 1: total at this pert point, the average price for all
Speaker 1: of those purchases it's thirty dollars. So micro Strategy it's
Speaker 1: well underwater on this bet. But Michael Sailor, I mean
Speaker 1: he's known as the biggest corporate advocate of bitcoin, and truly,
Speaker 1: I mean his actions are backing that up. Whether that
Speaker 1: will pay off for means to be seen. And clearly
Speaker 1: that wasn't created as good news in the stock market,
Speaker 1: but I mean, he does stick to his word. So
Speaker 1: here's a clip from my interview with Sailor. A couple
Speaker 1: of weeks ago. First question, any regrets. Take a listen
Speaker 1: to what he had to say. The bottom line is
Speaker 1: the bitcoin strategy is ten x better than any other alternative,
Speaker 1: and so no, I don't regret it. We've got two
Speaker 1: point eight billion dollars worth the bitcoin on our balance
Speaker 1: sheet right now, and we feel like we're positioned well
Speaker 1: for when the markets turn around, and our only other
Speaker 1: choice would be to give all the capital back to
Speaker 1: the shareholders, in which case we would have nothing and
Speaker 1: we would be struggling, uh to get by without any assets.
Speaker 1: Ten x better than any other alternative. He's thinking in
Speaker 1: the really, really really long term. But even in the
Speaker 1: short term, how is bitcoin standing up to alt coins
Speaker 1: and the alternatives out there? Well, if you look across
Speaker 1: the crypto ecosystem, I mean a really crude way to
Speaker 1: think about Bitcoin is sort of the Amazon or the
Speaker 1: apple of the crypto sphere. I mean, this is sort
Speaker 1: of the biggest coin out there. It tends to move
Speaker 1: less than some of the other coins, and you definitely
Speaker 1: saw that today. I mean to borrow a phrase from
Speaker 1: Ed Ludlow, I think he said flat as a floppy
Speaker 1: disk of bitcoin fell just three tents of percent. If
Speaker 1: you look at some of the old coins, they're more
Speaker 1: like the speculative tech stocks out there, the high flyers.
Speaker 1: You saw ether full almost five per cent, Salona even
Speaker 1: more than that. And this is why you typically see
Speaker 1: on the downside and the upside too, when Bitcoin moves higher,
Speaker 1: it the old coins that lead the gains. And as
Speaker 1: we've learned over the past few months, the same is
Speaker 1: true on the downside. When you do have this big
Speaker 1: draw down in bitcoin, it tends to be even bigger
Speaker 1: out the risk curve well. And at the same time,
Speaker 1: you have the bitcoin believer as you've got the folks
Speaker 1: are never ever going to give up on n f
Speaker 1: T s, and yet n f T s continuing to fall.
Speaker 1: I mean, you know, would you say we were were
Speaker 1: past the peak? It's a good question. I mean, just
Speaker 1: looking at the data, because you're gonna get a thousand
Speaker 1: different opinions. But if you look at the data on
Speaker 1: open see that is the biggest n f T marketplace
Speaker 1: out there. This is a really shocking stat In a
Speaker 1: Bloomberg News article today, sales volume has fallen just since
Speaker 1: ny It's at the lowest level since July. So I
Speaker 1: don't know, perhaps some of the air is coming out
Speaker 1: of that n F T bubble and whatever this is,
Speaker 1: you know, approaching the bottom remains to be seen. But Emily,
Speaker 1: this is what a crypto winter looks like. You tend
Speaker 1: to see a shakeout like this, and you're clearly seeing
Speaker 1: it in n F T S and all coins. It
Speaker 1: is cold. Indeed, Now the deadline for US regulators to
Speaker 1: rule on gray stales campaign to convert its bitcoin trust
Speaker 1: into a spot E t F is coming up. What
Speaker 1: are we expecting there? I am laser focused on this decision.
Speaker 1: I cover crypto, I cover E t F s. Now
Speaker 1: we have them coming full circle. So the consensus in
Speaker 1: both industries is that this is going to be a
Speaker 1: denial that the SEC isn't going to allow Gray Skill
Speaker 1: to convert it streuss into a physically backed e t F.
Speaker 1: That isn't a structure that exists in the U S.
Speaker 1: But I crunched the numbers on what that would actually
Speaker 1: mean for Gray Skill if this fund were to convert
Speaker 1: into an E t F. Again, not the base case.
Speaker 1: Right now, as a trust, it's able to charge two percent,
Speaker 1: So if you times that by the assets under management,
Speaker 1: about thirteen billion dollars. That works out to over two
Speaker 1: hundred thirty million dollars in revenue for gray Skill per
Speaker 1: year as a trust. But if it converts to an
Speaker 1: e t F, two percent is very very high for
Speaker 1: an e t F, You're almost never going to see that.
Speaker 1: Feel the most expre one of the most expensions crypto
Speaker 1: et f s out there, charges a fee of less
Speaker 1: than one percent, So even if they get a win
Speaker 1: in the next week, I mean, that would mean hundreds
Speaker 1: of millions of dollars lost in revenue. And Emily, we're
Speaker 1: in a crypto winter. All right, Katie, what are you
Speaker 1: gonna be watching tomorrow? Tomorrow? I mean, I'm right back
Speaker 1: to the fundamentals of the U S economy. I'm looking
Speaker 1: at core PC figures. But as we've learned, bitcoin tends
Speaker 1: to move along with stocks, and stocks are absolutely moving
Speaker 1: with inflation. Bloomberg's Katie Greifeld, thank you for telling us
Speaker 1: what's on your radar? All right? Coming up, the co
Speaker 1: founder of maderna new bar off and joins me next
Speaker 1: as a pandemic moves into yet another phase. Plus how
Speaker 1: the newest ruling from the U. S. Supreme Court could
Speaker 1: impact climate change and his portfolio. That is all. Next,
Speaker 1: this is Bloomberg. On Thursday, the U s. Supreme Court
Speaker 1: is set to issue another major decision. This one will
Speaker 1: have a big impact on climate change. Specifically, the power
Speaker 1: of the US government has to tell companies to reduce
Speaker 1: their greenhouse gas emissions. As we wait for the decision,
Speaker 1: many tech companies have been taking it upon themselves to
Speaker 1: reduce their carbon footprints. Indigo Agriculture is one such company
Speaker 1: helping fight climate change with carbon removal technologies backed by
Speaker 1: the venture capital firm Flagship Pioneering, which might sound familiar
Speaker 1: to you because the CEO of Flagship New Bar, a Fan,
Speaker 1: has been on our show many times. He is also
Speaker 1: the co founder of Maderna New Bar. It's great to
Speaker 1: talk to you again. I want to talk to you
Speaker 1: about Indigo Agriculture their carbon farming program. What is the
Speaker 1: dent you expect this or hope? Uh? This will make
Speaker 1: in the climate fight. Emily, thanks for having me. This
Speaker 1: is very exciting day today because it's really the first
Speaker 1: time that a certified carbon credit has been issued against
Speaker 1: basically output from farmers. And while today we announced twenty
Speaker 1: thousand tons of of of certified carbon being captured Uh,
Speaker 1: that really can scale and can scale rapidly, we think, uh,
Speaker 1: And so it really is a proof point. Um, there's
Speaker 1: there's probably several orders of magnitude a hundred of thousandfold
Speaker 1: more that can be expected from this. And I think
Speaker 1: that agriculture is kind of a very interesting way to
Speaker 1: think about carbon storing, capturing and storing carbon and creating
Speaker 1: with urns for farmers, which is also a very important, uh,
Speaker 1: kind of part of the circular economy aspect of this.
Speaker 1: So we're bracing for yet another Supreme Court ruling, this
Speaker 1: one on whether the e p A has the authority
Speaker 1: to tell companies to regulate greenhouse gas emissions. What are
Speaker 1: you bracing for here and how could this impact your
Speaker 1: new venture? Well, I mean, certainly, I think that that
Speaker 1: that we see a lot of mixed signals as when
Speaker 1: it comes to how consistently we want to to to
Speaker 1: to make sure that corporations and and other entities are
Speaker 1: being responsible for their carbon footprint. Certainly that the momentum
Speaker 1: has been in favor of more and more responsibility, but
Speaker 1: I think that regulation aside, the vast majority of companies
Speaker 1: are moving down a path where they're taking it upon themselves.
Speaker 1: Today's announcement by Indigo involves eleven major brands that actually
Speaker 1: have stepped up and and and associated with the work
Speaker 1: that the farmers do some forty dollars per ton of carbon,
Speaker 1: which is twice what it was a year ago. And
Speaker 1: we think that these incentives that that will drive the
Speaker 1: creation these credits will be part of the solution, and
Speaker 1: I think corporations might be forced to do it, but
Speaker 1: they also may choose to do it because it's the
Speaker 1: right thing to do and it's scalable. Now, regulatory advisors
Speaker 1: just recommended that shots from Maderna and Visor be updated
Speaker 1: to target Oh Macron, what are the next steps from
Speaker 1: a journal here and how will your concoction be different
Speaker 1: than what Fiser has to offer. Well, the context switch
Speaker 1: is pretty sudden, but I think it's it's memorable for me,
Speaker 1: Emily because at some level we're talking about the health
Speaker 1: of the planet, and then we're also talking about the
Speaker 1: health of the inhabitants of the planet. So for us,
Speaker 1: it's really all the same thing from a point of
Speaker 1: view of the science and the innovation. Uh specifically to
Speaker 1: your to your question, clearly we've been caught up in
Speaker 1: this battle for two years now between a virus and
Speaker 1: the detect human technology to combat it, and as the
Speaker 1: virus adapts, we've had to adapt our own vaccine to
Speaker 1: be able to stay ahead of it and provide the
Speaker 1: kind of immune protection. We showed yesterday's hearing with the
Speaker 1: FDA that the data we're generating out of a bi
Speaker 1: valent that is two different spike protein sequences in our
Speaker 1: new vaccines are a robust protection package for what we
Speaker 1: expect to be uh it's coming up in the fall.
Speaker 1: So what we need to do is to work with
Speaker 1: the authorities making sure that we we kind of uh
Speaker 1: put in place that what will be the next vaccine
Speaker 1: that's going to be used. Certainly, yesterday's book encouraged a
Speaker 1: macron to be incorporated into that, and once that's done,
Speaker 1: we're ready to ramp up production and be ready by
Speaker 1: early fall to provide the vaccines needed for protection. I
Speaker 1: think a lot of people, as you know, Emily, are tired.
Speaker 1: I'm tired. Everybody's tired of this, of this pandemic. But
Speaker 1: the bad news is devirus doesn't get tired, and we're
Speaker 1: gonna have to stay vigilant. However tired we get, we
Speaker 1: we are tired. I agree, and also you know there
Speaker 1: are a lot of folks waiting on these boosters and
Speaker 1: guidance on boosters. It's it's it's been kind of confusing
Speaker 1: the messaging from the US government. You said early fall,
Speaker 1: is that the soonest like when do you think O
Speaker 1: macron specific shots will be going into the arms of Americans?
Speaker 1: Ending working out with the FDA and other authorities the
Speaker 1: final vaccine composition that we're going with, and there's a
Speaker 1: little bit of this that begins to look like early
Speaker 1: versions of what we've done with seasonal flu, where there's
Speaker 1: got to be a definition set on what the next
Speaker 1: vaccine looks like. But once that's done, we think the
Speaker 1: sooner that's done, the sooner we can get on we're
Speaker 1: poised to manufacture significant quantities. And like we're looking at
Speaker 1: as early in the fall as we can. You know,
Speaker 1: early September would be great. May well be depending on
Speaker 1: when the go ahead is given that will affect it.
Speaker 1: But but we certainly have planned for in our poise
Speaker 1: to be able to move very very quickly. Now COVID
Speaker 1: vaccines are starting to roll out for kids, and I'm
Speaker 1: curious how you think that campaign is going we've seen
Speaker 1: a kind of a slow vaccination campaign under under pediatricians.
Speaker 1: What's it gonna take to make parents less hesitant to
Speaker 1: get this done? Look, I think that it took a
Speaker 1: while to get to this point, which is unfortunate because
Speaker 1: during that time, people were opposed to any any number
Speaker 1: of conflicting points of view, and and everybody uh seems
Speaker 1: to have a view about any number of topics that
Speaker 1: relate to public health, even though there's public health professionals
Speaker 1: that I'd say are probably much more uh prepared to
Speaker 1: and and qualified to to guide what it is we're
Speaker 1: doing as a population. I think it's gonna take a
Speaker 1: little bit of time for people to get the right information.
Speaker 1: The fact is, rigorous testing has been done. The fact
Speaker 1: is that protecting the youngest kids from getting infected is
Speaker 1: not only important for their health, but the health of
Speaker 1: the people surrounding them and the people who want to
Speaker 1: be with them. And so I think that overall, just
Speaker 1: like we're vaccinated for lots of other things, we care
Speaker 1: about our kids health and this is a very important
Speaker 1: next step. The other thing you have to keep in mind, Emily,
Speaker 1: and again this is I think getting lost in the
Speaker 1: information wars that seem to be going on, is that
Speaker 1: actually just getting COVID, let alone, getting it over and
Speaker 1: over again is from a long term health standpoint dangerous
Speaker 1: and and and I think that we think of this
Speaker 1: as a cold and we go, well, we get it
Speaker 1: every year, so a big deal. There's no evidence that
Speaker 1: the way this disease plays out. Quite the contrary, there's
Speaker 1: evidence that in some subset of people, several percent of
Speaker 1: the people, it has long term effects. And I don't
Speaker 1: see that that's going to be different once enough young
Speaker 1: kids get this. So we have to be less cavalier
Speaker 1: about it and do everything we can to prevent it,
Speaker 1: at least until we learn more about the disease. We
Speaker 1: just got a new headline that Fiser and bion Tech
Speaker 1: are going to get an extra three point two billion
Speaker 1: dollars from the United States for COVID vaccine development. Are
Speaker 1: you expecting more money from Maderna as well? I can't
Speaker 1: comment on that, alright, So let's talk about the national
Speaker 1: bio defense strategy. I'm so curious if you and Flagship
Speaker 1: have spoken to the by Buying administration about this and
Speaker 1: what the role of Flagship could be there. You know,
Speaker 1: obviously the hope is that at some point this pandemic abates,
Speaker 1: but we will be facing other threats, so emily we
Speaker 1: we have indirect contacts or through a number of channels,
Speaker 1: and I'd say that I'm happy to see more discussion
Speaker 1: happening about this whole notion of health security. This is
Speaker 1: something that we've talked about for three years, in fact,
Speaker 1: preceding the pandemic. We do think that we need to
Speaker 1: elevate our health to a matter of security, not just care.
Speaker 1: It's not enough that our health kind of is under
Speaker 1: attack and then we try to then do something about it.
Speaker 1: We have to get ahead of it and health security,
Speaker 1: whether it's against pathogen threats or against a lot of
Speaker 1: the slow pandemics that we are attacked by every day,
Speaker 1: whether that's cancer or Alzheimer's, or obesity or any number
Speaker 1: of diseases, all of these are the same kind of
Speaker 1: threat that can take down our lives, take down our health,
Speaker 1: and we need to get ahead of it. Health security,
Speaker 1: by defense. All of that is part of a comprehensive solution.
Speaker 1: And I certainly hope and expect that the kind of
Speaker 1: damage this pandemic is done will be at least converted
Speaker 1: into some long term lasting value to society. Just like
Speaker 1: major wars have led to significant kind of after effects
Speaker 1: that have been good for mankind. I expect that to
Speaker 1: be the case in this case through a more serious
Speaker 1: effort at preparedness and prevention. All right, well, really appreciate
Speaker 1: all the work you are doing and your team on
Speaker 1: the front lines to keep us all safe and also
Speaker 1: now to fight climate change as well. Majorna, co founder,
Speaker 1: CEO Flagship Pioneering New Bar a fan. Good to have
Speaker 1: you back. The iconic iPhone turns fifteen today. Steve Jobs
Speaker 1: introduced the revolutionary product back in two thousand seven, changing
Speaker 1: the phone and app landscape forever and archuably the world.
Speaker 1: For more on this, I want to bring in Bloomberg's
Speaker 1: Mark German, of course covers all things Apple. It is
Speaker 1: hard to overstate Mark just how much the iPhone has
Speaker 1: changed a lot of things about this world. How do
Speaker 1: you assess the impact of this one particular product and
Speaker 1: the future impact on the Apple ecosystem. So I think
Speaker 1: the iPhone is so much more than just the iPhone,
Speaker 1: even for Apple. If you think about Apple, the company
Speaker 1: that exists today and where they get all of their
Speaker 1: sales from all the revenue from and all the major
Speaker 1: elements their business, it all stems from the iPhone. So
Speaker 1: the iPhone, you look at that, but what came from
Speaker 1: the iPhone? The iPad came from the iPhone? Right, The
Speaker 1: App Store came from the iPhone. All their services, News
Speaker 1: plus TV, plus Apple Arcade, iCloud, all those things work
Speaker 1: hand in hand with the iPhone. So none of their
Speaker 1: peripheral products, the Apple Watch, the air pods, the Apple TV,
Speaker 1: those are all very iPhone reliant. So Apple is the
Speaker 1: iPhone company because the iPhone not only is their biggest seller,
Speaker 1: but it needed to exist for all of their other
Speaker 1: products to exist. So Apple, you might as well rename
Speaker 1: them to iPhone in from that standpoint, and obviously you
Speaker 1: see what it's done for the world. Right. People don't
Speaker 1: talk to each other in lines anymore, right, People can't
Speaker 1: focus on screens in a movie theater anymore. Right. Everyone
Speaker 1: is glued to their phone constantly, and people can do
Speaker 1: anything from their phone, whether it's an iPhone or Samsung.
Speaker 1: It all stemmed from the iPhone. So what are the
Speaker 1: next fifteen years of growth going to come from for Apple?
Speaker 1: Are we gonna be using phones at all? In fifteen years.
Speaker 1: Is it going to be an a R headset? Is
Speaker 1: it going to be recurring revenue from services? I think
Speaker 1: there's always gonna be a place for a handheld device
Speaker 1: of product that you keep in your pocket, in your
Speaker 1: bag or whatnot. I think maybe you'll sleep see people
Speaker 1: wean off of tablets and laptops more in the iPhone
Speaker 1: itself becomes sort of a phone, quote desktop computer or
Speaker 1: your home computer, your laptop, and what was the phone
Speaker 1: sort of shifts to the wrists for the smart watch
Speaker 1: and for the A R glasses. So I think the
Speaker 1: iPhone will have a place fifteen years from now still right.
Speaker 1: I still think there will be new iPhones in over
Speaker 1: a decade from now, but you'll see that sort of
Speaker 1: to use the Steve Jobs analogy, the iPhone become the truck, right,
Speaker 1: and the air glasses in the watch become par So
Speaker 1: I still think there's a place for the phone. One
Speaker 1: term interesting bloom Brooks Mark German, who covers Apple and
Speaker 1: will be hopefully for much, if not all, of those
Speaker 1: texts fifteen years, Mark, thank you, Welcome back to Bloomberg Technology.
Speaker 1: I'm Emily changing in San Francisco, subscribing to Snapchat. That's right.
Speaker 1: Snap is launching a paid version of the widely used
Speaker 1: social media platform, offering quote exclusive and experimental they say
Speaker 1: features gloom Skirt Wagner joins us now to discuss. So
Speaker 1: we've seen the struggles that like Netflix is having, for example,
Speaker 1: with its subscription service, why is not moving into this business?
Speaker 1: So you're noticing this both with Snap you recall Twitter
Speaker 1: did this as well. I think this has to do
Speaker 1: with the fact that these are advertising companies. Um, it's
Speaker 1: been a tough year with everything happening with Apple and
Speaker 1: the tracking changes, and I think these companies that have
Speaker 1: mostly built an entire business around advertising are realizing that
Speaker 1: it's not always in their control, it's not always in
Speaker 1: their hands. It's good to have other forms of revenue,
Speaker 1: even if they're small, to kind of counterbalance that somewhat.
Speaker 1: And so I think that's why you're starting to see
Speaker 1: some of these social platforms start to, you know, tinker
Speaker 1: with subscriptions. So what kind of premium content do I
Speaker 1: get for Yeah, it sounds pretty limited. From what I
Speaker 1: can tell. It sounds like you can, you know, similar
Speaker 1: things to to Twitter. Again. You can change your app icon,
Speaker 1: you can prioritize certain messages, right, So maybe pin things
Speaker 1: that you use regularly. So I don't think it's the
Speaker 1: kind of thing that the vast majority of people will
Speaker 1: want to use. But again, similar to Twitter, if you
Speaker 1: are a power user, if you're someone who does all
Speaker 1: or most of your communication on Snap, maybe this is,
Speaker 1: you know, something that's worth a couple of bucks too.
Speaker 1: Are we going to see more strategies like this from
Speaker 1: other similar company? I think so because of the advertising thing, right,
Speaker 1: I think if you're an advertising business, you have to
Speaker 1: sit around and look and say can we control There's
Speaker 1: a lot that you can't, as we've learned from the pandemic,
Speaker 1: as we've learned from Apple, and so I think you
Speaker 1: know you're going to see the facebooks and others of
Speaker 1: the world. Maybe it's not subscriptions, but maybe it's commerce
Speaker 1: or other types of revenue streams beyond advertising paying for
Speaker 1: certain features. Essentially. Yeah, I mean you heard Mark Zuckerberg
Speaker 1: last week talk about the metaverse and how he wants
Speaker 1: people to you know, shop and buy clothes for their avatar.
Speaker 1: Like that's not advertising in the way we think of
Speaker 1: with with Meta or Facebook. It's a different kind of revenue,
Speaker 1: But I think it's all alt. Are people going to
Speaker 1: be paying for clothes for their avatars? Is that going
Speaker 1: to be? But do you believe UM? I believe that
Speaker 1: people will pay things. Yes, I believe people will buy
Speaker 1: things for the avatar. I don't know if UM it
Speaker 1: will be widely used by people, at least early on.
Speaker 1: Right if if suddenly you and I are having this
Speaker 1: interview in the metaverse someday and I'm working from home
Speaker 1: and you're going from home, like, I'm probably gonna want
Speaker 1: to wear something a little nicer than what I have here,
Speaker 1: So maybe I would I would have Bloomberg expensive. That's
Speaker 1: an interesting use case. I'll think about it. Our car Wagner,
Speaker 1: thank you well. After two years of virtual conferences, hp
Speaker 1: s annual Edge to Cloud Conference is back in person
Speaker 1: in Las Vegas. More than eight thousand people intended to
Speaker 1: hear about the latest innovations as the company leans into
Speaker 1: its everything as a service business strategy. HP CEO Antonio
Speaker 1: Narry joins us now exclusively to bring us the latest
Speaker 1: from Vegas. Antonio, it's great to have you back with us.
Speaker 1: So look that it seems like the everything on people's
Speaker 1: minds NOW is the economy. What are you hearing from customers,
Speaker 1: how worried are they and how is this potentially impending
Speaker 1: recession impacting them? Well, I mean, first of all, thanks
Speaker 1: for having me. Is a great day to be here
Speaker 1: with customers in parliaments. As you said, we have more
Speaker 1: than eight thousand attendees, and he has been an amazing
Speaker 1: couple of days where the energy is unbelievable. It shows
Speaker 1: that being together right is unique and one feed by
Speaker 1: a god from customers, this this time around feels totally
Speaker 1: different and there's a sort of a sense of excitement.
Speaker 1: And what we hear from them is that the power
Speaker 1: of digital transformation is accelerated and they need solutions to
Speaker 1: accelerate inside from the data. Obviously they are all concerned
Speaker 1: about what's happened next, but I think it's more a
Speaker 1: consumer phenomenal than an enterprise at phenomenal. So how that
Speaker 1: impacting your outlook? I mean, do you think a recession
Speaker 1: is inevitable? I mean you have to be planning for
Speaker 1: that scenario. Of course, we do based planning scenarios for
Speaker 1: what comes next. But I have to tell you, Emily,
Speaker 1: the demand that we continue to see the market is
Speaker 1: incredibly strong, and this event is a catalyst to continue
Speaker 1: with the momentum. We showcase amazing innovation and delivering on
Speaker 1: the vision I shift three years ago. By the way,
Speaker 1: when was the last discovered here in Vegas that we
Speaker 1: can offer everything as a service from h to cloud.
Speaker 1: But as I think about the megatrends right related to
Speaker 1: the need to connect, the need to deliver a cloud
Speaker 1: experience for all your loads and data, they need to
Speaker 1: extract insights. You know, I keep saying, you know, we
Speaker 1: have data rich but insight poor and ultimately be able
Speaker 1: to consume it in a more flexible way. That's accelerating.
Speaker 1: That's why I'm more positive about the it T spend
Speaker 1: than obviously the consumer spend. You've got cloud providers out
Speaker 1: there fighting for industries and companies that haven't yet moved
Speaker 1: their data to the cloud. Which companies are these and
Speaker 1: how does HPE win their business? Well, our strategy from
Speaker 1: the get go was to provide a hybrid experience for
Speaker 1: all your loads and data, and that's now very clear.
Speaker 1: When you talk to customers and partners, they tell you
Speaker 1: the world is hybrid. At the same time, digital transformation
Speaker 1: is all about a journey to drive a data first,
Speaker 1: modernization data has gravity and has tremendous value, more value
Speaker 1: than ever we manage imagine before. So what customers are
Speaker 1: going through is a multi generational, a t journey, but
Speaker 1: ultimately they need the hybrid experience. And so as customers
Speaker 1: think about compliance issues, regulatory issues obviously cyber issues and cost,
Speaker 1: they realize they need a platform to be able to
Speaker 1: conduct their business across whatever those worlds and data live
Speaker 1: and h speakering leg is the beating heart of our strategy,
Speaker 1: and they realize they can live in a multi cloud world,
Speaker 1: whatever public cloud environment they use, but also compliment with
Speaker 1: an amazing set of solutions on prem and more and
Speaker 1: more of the edge. I think it's fair to recognize,
Speaker 1: Emily that seventy of the data is actually outside the
Speaker 1: public cloud sits at the edge, and more than thirty
Speaker 1: of that data needs to be processed real find and
Speaker 1: that's the opportunity for of US. HP is one of
Speaker 1: the largest companies that has moved its headquarters from Silicon
Speaker 1: Valley to Texas, and it really looks like we're seeing
Speaker 1: an inflection point in American social and political history right now.
Speaker 1: What do you have to say to employees who might
Speaker 1: be upset that they've now moved to Texas and they
Speaker 1: can't access an abortion. Well, first of all, we decided
Speaker 1: to move our headquarters to Texas a couple of years
Speaker 1: back during the pandemic because I was in the process
Speaker 1: of building a state of the arts site for our
Speaker 1: Houston based employees, and I think about the ability to
Speaker 1: attractively can talent. I thought the opportunity to create two
Speaker 1: very amazing sites. One is the San Jose where a
Speaker 1: lot of a thought leadership takes place, and one is
Speaker 1: in Houston, Texas, where a lot of the operational and
Speaker 1: back office takes place. But at the same time, you know,
Speaker 1: when you talk about this social challenges, listen and I'm
Speaker 1: an immigrant. They have been living now in the United
Speaker 1: States or more than twenty three years. And I'll to
Speaker 1: tell you, I'm incredible disappointed. This is not you know,
Speaker 1: politics is not about a specific state of the other.
Speaker 1: But when we saw what we saw last last week,
Speaker 1: we as a company felt compelled to stand up inside
Speaker 1: by the women choice, meaning given them the choice what
Speaker 1: is right. And ultimately it was a company who offered
Speaker 1: amazing benefits where we actually pay for all the travels
Speaker 1: and the medical needs that they have if they decide
Speaker 1: to make the choice. Have you had any reconsiderations about
Speaker 1: hps own decision in light of the changes to the
Speaker 1: social and political landscape. Are you hearing anything from employees
Speaker 1: who made that choice to move and now you know,
Speaker 1: are we considering No? Not. Remember we're a global company, Emily,
Speaker 1: I do business in a hundred seventy two countries. I
Speaker 1: have sixty thou team members all over the world. Uh
Speaker 1: and we encouraged because work to feedback and obviously we
Speaker 1: want to hear their voices. But at the same time
Speaker 1: we tell them go to the book and vote. Vote
Speaker 1: what you think is the right thing based on your
Speaker 1: view of the issues. And we understand that sometimes we
Speaker 1: run into polarized views. But at the same time, we
Speaker 1: cannot address every individual issues again because whether it's one
Speaker 1: thing in the United States. You also realize we also
Speaker 1: do business in the rest of the world. But what
Speaker 1: we stand up is what is called to our purpose
Speaker 1: and value as you recall our purpose to it once
Speaker 1: the way we all live and work, and we need
Speaker 1: to be a force for good. And that's myself as
Speaker 1: a leader of this company. I guide myself every single day,
Speaker 1: right sure, you also have employees who want to move
Speaker 1: from California to Texas as well. It works both ways,
Speaker 1: HP CEO Antonio Neary from your users conference in Las Vegas.
Speaker 1: Thank you so much for stopping by. Coming up, we
Speaker 1: are going to get a feel for institutional intimate about
Speaker 1: crypto and D five. Falcon X CEO ragu Yar Lagatta
Speaker 1: coming up with me next. This is Bloomberg time now
Speaker 1: for crypto reported losses deep it with popular de fight
Speaker 1: tokens like Salana and Avalanche, Avalanche following more than sector
Speaker 1: bellweather Bitcoin. With all this, where does institutional sentiments stand for?
Speaker 1: More on that I want to bring in ragu Yar Lagatta,
Speaker 1: CEO of the crypto trading platform falcon X, which focuses
Speaker 1: on institutional investors. So where is sentiment ragu right now?
Speaker 1: Good to be back Emily in terms of institutional interest
Speaker 1: in the space, in the shockdom and liam in definitely
Speaker 1: there is fear institutions are being verty cautious and by
Speaker 1: that what I mean is they're not taking directional bets.
Speaker 1: UH insure are focused on market neutral strategies like basis
Speaker 1: rate without taking directional better. The second point that institutions
Speaker 1: are feeling is the idiosyncratic risk that is coming from
Speaker 1: the liquidation cascades that we've seen in the space for
Speaker 1: the last two months. That's definitely affecting crypto, and most
Speaker 1: of it I think is flushed through the system, but
Speaker 1: again for another two to three weeks, we've got to
Speaker 1: be very careful as a segment. Last, but not the least,
Speaker 1: is the the correlation, the high correlation to risk on assets,
Speaker 1: specifically high road text stalks. So we think that that
Speaker 1: correlation is also going to continue for the next few
Speaker 1: quarters at the very least. But overall, if you look
Speaker 1: at the long term, we have seen the highest number
Speaker 1: of customers on board, highest activity on the platform, and
Speaker 1: that's to say that's bigger than Falconnect, and that's to
Speaker 1: say that institutional interest for the mid to long term
Speaker 1: on crypto and more broadly disclasses keeps continues to be strong. Meantime,
Speaker 1: you've got micro strategy buying more bitcoin. What do you
Speaker 1: make of them now, aximalist strategy versus other coins, other
Speaker 1: options out there. Yeah, So for a large part of
Speaker 1: twenty twenty one and continuing into twenty twenty two as well,
Speaker 1: we've seen a lot of institutions go beyond just bitcoin
Speaker 1: and ethereum um. Early part of twenty twenty and through
Speaker 1: twenty twenty. Later part of twenty twenty definitely was all
Speaker 1: centered around bitcoin, but most institutions diversified beyond bitcoin into
Speaker 1: ethereum and some of the elements as well. That said,
Speaker 1: the micro sanctuaries, you know, buy a ten million dollars.
Speaker 1: I think it's symbolic. It is a very strong signal
Speaker 1: despite the market conditions, that they're willing to double down
Speaker 1: on that, and that is something that a lot of
Speaker 1: institutions are watching out because that some institutions consider that
Speaker 1: to be a systemic risk if micro strategy rethinks that decision.
Speaker 1: So that signal is creating very good sentiment in the market.
Speaker 1: How is global sentiment evolving? For example, how is it
Speaker 1: different in the US versus Hong Kong versus let's say, Australia.
Speaker 1: The interesting part is we are actually over the last
Speaker 1: month or two months, Emily, we're seeing a big divergence
Speaker 1: between different markets. For example, US is definitely trending towards
Speaker 1: a much more cautious side. Asia not as cautious as US,
Speaker 1: which means they're still exploring, you know, all coins but
Speaker 1: more broadly, over the last one month, UM institutions are
Speaker 1: not taking directional bets, and that all the price movements
Speaker 1: that we are seen are largely stemming from the retail
Speaker 1: side of the equation. So US is in summary, US
Speaker 1: is tending towards the more conservative side. ASIA slightly more
Speaker 1: aggressive than the US, but holistically as a space, institutions
Speaker 1: are being very cautious. Now, you recently raised a hundred
Speaker 1: fifty million dollars in a new round of funding, eight
Speaker 1: billion dollar valuation, and as I understand it, this funding
Speaker 1: game together in just a couple of weeks. How don't
Speaker 1: you make is to pull this off in like you know,
Speaker 1: a very dismal market, the market conditions in twenty two
Speaker 1: a very different emily to your point, yes, this is
Speaker 1: a very recent round, as recent as about two or
Speaker 1: three weeks back. And again the big hypothesis that US
Speaker 1: and some of the highest quality investors for growth stage
Speaker 1: are seeing right now when we're seeing data to prove
Speaker 1: this hypothesis. The hypothesis is that Crypto, for the first
Speaker 1: time objectively proved that you can run full stack financial services,
Speaker 1: whether it's trading, banking, credit clearing, all of these services seven,
Speaker 1: truly globally and truly elastically. No company, no country so
Speaker 1: far has objectively proved that that can be possible, and
Speaker 1: crypto has done this at a trillion dollar scale. Now
Speaker 1: that is what we see in terms of the future
Speaker 1: of finance. To be right, I mean a lot of
Speaker 1: world's value is going to be tokenized. We are actually
Speaker 1: seeing the data underneath that. As a result, despite the
Speaker 1: very tough market conditions, Q one we've remain profitable as
Speaker 1: a company. Q one we onboarded the highest number of
Speaker 1: customers and Q one we have the highest engagement in
Speaker 1: the platform, and that actually is because of the bigger
Speaker 1: thing at play, which is that this class of transformation.
Speaker 1: We think equities and fixed income markets in the next
Speaker 1: five or ten years are going to be organized as well,
Speaker 1: and institutions want to play in that organized world. I
Speaker 1: have to ask where you stand in this debate. Are
Speaker 1: you a maximalist? Are you more of an ethereum other
Speaker 1: coin kind of guy? I do see you know block
Speaker 1: chains to be You know, in some business constructs you
Speaker 1: can compare them to marketplaces, any marketplaces economies of scale
Speaker 1: and network effects. Bitcoin undoubtedly has the biggest network effects,
Speaker 1: but you know, compared to any other you know, cryptocurrency.
Speaker 1: But that being said, I don't think bitcoin alone will
Speaker 1: cater to every single use case that's out there. So definitely,
Speaker 1: I do think the world is bigger than bitcoin, but
Speaker 1: I don't think it is five thousand bikens either, So
Speaker 1: it's going to be a head heavy equation with like
Speaker 1: you know, five then getting the lead in a meaningfully
Speaker 1: large way. All right, ragu y'allagatas CEO of falcon X,
Speaker 1: thank you for sharing your position with us. Let's get
Speaker 1: back to the markets on a largely flat day, investors
Speaker 1: and consumers just waiting to see if prices will come
Speaker 1: down and a recession will be avoided. For more. Now,
Speaker 1: I'm joined by Betterman CEO Sarah Levy, and Sarah, I
Speaker 1: know that many of your customers are affluent millennials who've
Speaker 1: got you know, a little bit of of of money
Speaker 1: in the bank, some assets to move around. How are
Speaker 1: you advising them at this time? So, you know, it's
Speaker 1: interesting because philosophically, we have always believed in long term diversification,
Speaker 1: and so you know, we we attract a client base
Speaker 1: that believes in that philosophy and sort of stays the course.
Speaker 1: So in general, our advices stay the course, and I
Speaker 1: think in some ways we do our best in this
Speaker 1: sort of economy, um, in this sort of volatle market,
Speaker 1: because text mark technology is a huge part of the
Speaker 1: value proposition that we offer. Betterment was actually founded during
Speaker 1: a downturn. What comparisons do you see between then and now? Well,
Speaker 1: it's interesting, you know, some would say better to be
Speaker 1: lucky than smart, right, so when when Betterment launched, um,
Speaker 1: we it was a downturn, and so we were able
Speaker 1: to put some quick wins on the board for our customers.
Speaker 1: And I think that really holds true now as well. UM.
Speaker 1: You know, I know your last segment was on crypto
Speaker 1: and and we're entering the crypto market, and I think
Speaker 1: they're The similarity I would draw is where we are
Speaker 1: in the crypto space right now relative to where we
Speaker 1: were in the overall market, UM a decade ago when
Speaker 1: we were founded. I know you're working on a crypto
Speaker 1: product for launch later this year. What's your take on
Speaker 1: the broader crypto volatility? And you know Bitcoin at new lows.
Speaker 1: You know, our view is that crypto continues to be
Speaker 1: an asset class to play for the long term, and
Speaker 1: we think about the asset class as a whole rather
Speaker 1: than thinking about the individual stories. So is it you know,
Speaker 1: Bitcoin or the rest of the coins kind of coming
Speaker 1: up behind. So our view is long term diversification works
Speaker 1: in the in traditional finance and similarly works in crypto.
Speaker 1: And then from an advisory standpoint, you know, we believe
Speaker 1: this is not an all or nothing idea, but we're
Speaker 1: going to advise our clients to keep less than five
Speaker 1: percent of their portfolios in crypto as a diversification play.
Speaker 1: We have reported that f t X is Sam Bankman.
Speaker 1: Freed is interested in buying Robin Hood. What's your take
Speaker 1: on that? How how does that change the game. Well,
Speaker 1: it's interesting. You know, I think particularly self directed trading
Speaker 1: got a lot of excitement, and I think some combination
Speaker 1: of crypto and options and single stocks. You know, folks
Speaker 1: thought that they were sort of smarter and more informed
Speaker 1: and that they could play the market in a really
Speaker 1: you know, self directed way, and I think that often
Speaker 1: ends badly. You know, in that market, we were preaching
Speaker 1: eat your vegetables, while they were preaching you know, here's
Speaker 1: a piece of cake. And I think now you come
Speaker 1: out on the other side and eat your vegetables feels
Speaker 1: you know, pretty good and pretty tried and true. So
Speaker 1: you know, I think they're they're doing a variant of
Speaker 1: what we are. They're just doing it and self directed,
Speaker 1: you know, investing, whereas we're doing it in a sort
Speaker 1: of buy and hold advisory capacity. Is a recession inevitable
Speaker 1: in your view? And if so, when does it happen?
Speaker 1: You know, I don't like to prognosticate particularly on that.
Speaker 1: I mean, you know, I think the monetary policy right now, um,
Speaker 1: that that the government is putting forth is important to
Speaker 1: cool inflation, and I think that's really the number one objective.
Speaker 1: And and threadning the needle is really the key. Um,
Speaker 1: you know, whether or not that needle is going to
Speaker 1: be thread between employment and inflation and and interest rates,
Speaker 1: um is really gonnaddict. What happens in the markets. How
Speaker 1: do you thread that needle in portfolio invest for basically
Speaker 1: either scenario? Right? Well, I think again, you know, trying
Speaker 1: not to overreact. I mean, you know, we've, for example, behaviorally,
Speaker 1: don't nudge customers to make too many moves. And so
Speaker 1: when we think about the savings rate environment right now
Speaker 1: and that rate going up, one of the things we're
Speaker 1: gonna do is we're gonna put more cash and recommend
Speaker 1: more cash into people's portfolios. But again, these are going
Speaker 1: to be sort of modest changes at the margin because
Speaker 1: on average and over time, right dollar cost averaging philosophically
Speaker 1: makes sense, um, you know, taking advantage of the text
Speaker 1: tools that are available to capture some extra beata there. Um.
Speaker 1: So we think there's a lot of good in diversification,
Speaker 1: you know, while we're seeing this market volatility. All right,
Speaker 1: Sorry leaving CEO of Betterment Sarah, thank you for taking
Speaker 1: the time to join us, Thanks for having me. And
Speaker 1: that does it for this edition of Bloomberg Technology. Or
Speaker 1: to be right back here tomorrow. We've got a number
Speaker 1: of great guests, including CLEO Capital, Sarah Kuntz, and the
Speaker 1: CEO of Peak to talk about the travel season ahead
Speaker 1: of the fourth of July holiday. Don't we get to
Speaker 1: check out our new podcast meantime. You can find it
Speaker 1: on the terminal, Apple, Spotify, I Heart Radio, and anywhere
Speaker 1: you get your podcast. I'm Emily Chang in San Francisco.
Speaker 1: This is Bloomberg