WEBVTT - Microsoft CEO on Productivity and Dreamforce in San Francisco 0:00:02.200 --> 0:00:05.600 From the heart of where innovation, money and power collive 0:00:06.360 --> 0:00:10.880 in Silicon Valley and beyond. This is Bloomberg technology with 0:00:10.920 --> 0:00:27.280 Emily Jay. I met Ludlow in New York in Family 0:00:27.400 --> 0:00:30.040 Chang this is Bloomberg technology. Coming up in the next 0:00:30.040 --> 0:00:35.159 hour Bloomberg's conversation with Microsoft's CEO Sacha Adela and Linkedin 0:00:35.280 --> 0:00:40.199 CEO Ryan Ross Lanski, about monitoring productivity and why Nodela 0:00:40.360 --> 0:00:44.760 is so confident about approval from Microsoft's acquisition of activision. 0:00:44.840 --> 0:00:48.440 Blizzard plus Mark Benioff is throwing dream force the biggest 0:00:48.479 --> 0:00:52.040 convention to hit San Francisco since the pandemic began. The 0:00:52.080 --> 0:00:54.760 Bloomberg Tech team was also on site and asked Benni 0:00:54.760 --> 0:00:58.800 off about his future at salesforce and the economy and 0:00:58.880 --> 0:01:02.680 impossible foods joins the climate pledge to reduce combon emissions 0:01:02.720 --> 0:01:06.839 to net zero by I'll ask CEO Pete McGuinness about 0:01:06.840 --> 0:01:09.800 the role his company's playing in the global warming battle. 0:01:10.440 --> 0:01:12.200 We'll get to that in a moment, but first let's 0:01:12.200 --> 0:01:13.480 get a look at the markets. And we had a 0:01:13.480 --> 0:01:16.880 tech tumble following Wednesday's fed rate rice. Joining us all 0:01:17.000 --> 0:01:20.360 to break it all down. Bloomberg's Katie Gryfeld. Hi Katie, hi, 0:01:20.520 --> 0:01:22.399 and well, I have good news and bad news. The 0:01:22.400 --> 0:01:24.360 good news is that I think we're on set together 0:01:24.440 --> 0:01:27.720 for the first time ever, so that's huge. The bad 0:01:27.800 --> 0:01:30.040 news is that it was a terrible day in the 0:01:30.080 --> 0:01:33.399 stock market. Like you said, that hangover from the Fed 0:01:33.440 --> 0:01:36.120 on Wednesday continued. You could see it in the NAZAC 0:01:36.200 --> 0:01:39.240 one hundred, those big tech stocks at index falling over 0:01:39.440 --> 0:01:44.280 one percent. Chips also taking a beating out, underperforming down 0:01:44.319 --> 0:01:47.200 almost three percent, and it was the riskier parts of 0:01:47.240 --> 0:01:49.920 the market that really took it on the chin the 0:01:49.960 --> 0:01:53.440 most of you look at these unprofitable tech basket down 0:01:53.480 --> 0:01:56.800 almost five percent today. All this coming in a backdrop 0:01:56.880 --> 0:02:00.280 of higher and getting higher treasury yields. You'll of the 0:02:00.320 --> 0:02:04.000 two year treasury yield right there, raising another seven basis points. 0:02:04.080 --> 0:02:07.240 Is traitor suggest to an ever more hawkish fed. And 0:02:07.320 --> 0:02:09.680 let's look what that relationship looks like. If you look 0:02:09.680 --> 0:02:12.920 at the two year yield versus stocks, you're looking against 0:02:12.919 --> 0:02:15.240 the SMP five hundred. You can see that. For a 0:02:15.280 --> 0:02:19.040 while actually these two were rising together, but now is 0:02:19.080 --> 0:02:22.760 that two year treasury yield continues and continues to climb. 0:02:22.760 --> 0:02:26.160 You're starting to see that reevaluation going on in the 0:02:26.200 --> 0:02:29.280 broader stock market and the SP five hundred nearing its 0:02:29.360 --> 0:02:32.840 lows from earlier in the summer. But let's talk about 0:02:32.840 --> 0:02:35.360 some of the specific single names you have on the 0:02:35.400 --> 0:02:38.720 board here. Some of the travel names taking a beating today. 0:02:38.760 --> 0:02:44.080 We're talking about expedia and AIRBNB, bulls falling as recession 0:02:44.120 --> 0:02:48.280 fears continue to build. You did see alphabet shares rise 0:02:48.320 --> 0:02:50.680 a little bit and activision blizzard, like you were saying, 0:02:50.720 --> 0:02:55.400 at Microsoft saying that they're still confident that that purchase 0:02:55.440 --> 0:02:57.440 will go through. All right, let's walk a little bit 0:02:57.480 --> 0:03:00.600 about more about that now. Thanks, Katie. Employee say they're 0:03:00.600 --> 0:03:04.080 productive at work, but leaders say they're not so sure. 0:03:04.120 --> 0:03:07.720 This according to new data released by Microsoft and linked in. 0:03:07.880 --> 0:03:11.640 Microsoft is also releasing a new suite of productivity tools 0:03:11.800 --> 0:03:15.480 to facilitate better interaction between workers and their bosses to 0:03:15.560 --> 0:03:19.320 combat what Microsoft CEO sat in Adel Calls the productivity 0:03:19.440 --> 0:03:22.960 paranoia paradox. Bloomberg's Emily Chang spoke with him about all 0:03:23.000 --> 0:03:25.920 this and more, along with Linkedin CEO Ryan Ross Lanski, 0:03:26.000 --> 0:03:28.880 on Wednesday. Take listen to what they had to say. 0:03:30.560 --> 0:03:36.240 This productivity paranoia, as we describe it. It's one of 0:03:36.240 --> 0:03:39.160 the things that's emerging where the managers and the leaders 0:03:39.200 --> 0:03:42.720 think that their employees are not productive, as employees feel 0:03:42.760 --> 0:03:44.960 that they're being very productive and in many cases even 0:03:45.000 --> 0:03:48.240 feel burned out. So I think one of the most 0:03:48.320 --> 0:03:51.440 important things for us in this new world of work 0:03:51.480 --> 0:03:55.200 and hybrid work is to bridge this paradox in some sense, 0:03:55.280 --> 0:03:59.200 because we have to figure out because both sides need 0:03:59.240 --> 0:04:02.800 the same thing. Employees feel that they are thriving and 0:04:02.800 --> 0:04:04.920 they need to thrive. That means they need to really 0:04:04.920 --> 0:04:07.280 feel a sense of empowerment, they need to have that 0:04:07.360 --> 0:04:10.240 sense of energy to do meaningful work. And, after all, 0:04:10.280 --> 0:04:12.120 as a leader and as a manager, what do you need? 0:04:12.360 --> 0:04:14.520 You need your employees to thrive. So I think we 0:04:14.600 --> 0:04:18.160 need both new soft skills and managerial skills to make 0:04:18.160 --> 0:04:22.800 that happen, but you also absolutely need new tools. Now, Ryan, Microsoft, 0:04:22.839 --> 0:04:26.120 speaking of those tools, is offering several products. You've got 0:04:26.279 --> 0:04:29.120 viva goals to help align workers with the business, Viva 0:04:29.240 --> 0:04:31.839 pulse to get a better sense of how employees are feeling. 0:04:32.240 --> 0:04:37.880 There's engaged, there's amplified to encourage interaction and communication. How 0:04:37.920 --> 0:04:40.719 do you think these tools, Ryan, are unique to the 0:04:40.720 --> 0:04:44.240 products that are already out there. Well, I think you know, 0:04:44.720 --> 0:04:46.760 on on the via side, at the end of the day, 0:04:47.240 --> 0:04:49.800 if you want the productive workforce, the most important thing, 0:04:49.839 --> 0:04:52.960 first and foremost is that you empower the individual to 0:04:53.000 --> 0:04:56.960 be productive. Secondly, do you understand that an individ vidual 0:04:57.000 --> 0:04:59.800 doesn't work alone? They need to collaborate, so ensuring they 0:04:59.800 --> 0:05:02.760 have the tools to collaborate as well. And on the end, 0:05:02.880 --> 0:05:06.320 now a new really important skill managers need is to 0:05:06.520 --> 0:05:09.200 ensure the well being of their employees and I think 0:05:09.240 --> 0:05:12.080 a lot of the Viva suite brings that together. Then 0:05:12.120 --> 0:05:14.520 obviously we're able to leverage a lot of what we 0:05:14.640 --> 0:05:17.440 see on Linkedin to help inform that. There is a 0:05:17.480 --> 0:05:20.680 ton of uncertainty obviously happening in the world. You know, 0:05:20.720 --> 0:05:23.000 the last time, I think we spoke and maybe eighteen 0:05:23.040 --> 0:05:27.000 months ago, we were seeing across the linkedin data an 0:05:27.080 --> 0:05:31.599 unprecedented amount of movement happening in the labor market. We 0:05:31.640 --> 0:05:36.720 saw employees everywhere not only questioning how and where they work, 0:05:36.800 --> 0:05:38.560 but why they work, and it was leading to what 0:05:38.600 --> 0:05:42.159 we call the great reshuffle. We're actually seeing that now 0:05:42.240 --> 0:05:44.520 start to come down a little bit. Actually, for the 0:05:44.520 --> 0:05:47.200 first time in eighteen months, the year. Your trend and 0:05:47.240 --> 0:05:50.680 people changing jobs on Linkedin is flat. So things are 0:05:50.680 --> 0:05:53.240 starting to settle right now, but it's entering into a 0:05:53.279 --> 0:05:57.279 new period of uncertainty. SATIA, in the early days of 0:05:57.320 --> 0:06:01.159 the pandemic, you expressed your concerns that we were burning 0:06:01.200 --> 0:06:04.440 social capital by spending so much time away from the office. 0:06:04.760 --> 0:06:07.640 Are you finding now, I'm curious about your personal experience, 0:06:08.480 --> 0:06:10.440 are you finding now that you were right, that that 0:06:10.520 --> 0:06:12.680 this has come at a cost to social capital and 0:06:12.680 --> 0:06:15.760 that needs to be rebuilt? Yeah, no, there's no question 0:06:16.200 --> 0:06:19.760 that Um, social capital needs to be rebuilt. But the 0:06:19.839 --> 0:06:23.440 one thing, emily, I think we all also learned is 0:06:23.480 --> 0:06:26.320 how to build social capital in a variety of ways. 0:06:27.080 --> 0:06:29.640 One of the things, even during the pandemic, I personally 0:06:29.760 --> 0:06:33.040 learned is I met more people. For example, on a 0:06:33.120 --> 0:06:36.000 team's call, I would click on the profile of every 0:06:36.040 --> 0:06:39.560 person in the meeting learned so much more about them. Uh, 0:06:39.640 --> 0:06:41.760 and now when I see them in person, I know 0:06:42.040 --> 0:06:44.839 that I feel like I know them much more deeply. 0:06:45.320 --> 0:06:47.279 So I think I picked up a new skill of 0:06:47.279 --> 0:06:49.520 how to build social capital and that's going to remain 0:06:49.880 --> 0:06:52.600 with us. But to your other point, even in fact, 0:06:52.640 --> 0:06:54.520 one of the data points that in the work trends 0:06:54.560 --> 0:06:57.400 index we talked about, is people come to work for 0:06:57.480 --> 0:07:01.240 other people, not because of some policy, and so that, 0:07:01.360 --> 0:07:04.159 I think, should teach us as leaders something which is you, 0:07:04.360 --> 0:07:08.000 as a leader now should develop the soft skill to create, 0:07:08.080 --> 0:07:12.080 essentially those events which allow you to bring people together 0:07:12.320 --> 0:07:15.200 with other people in order to be able to accomplish 0:07:15.240 --> 0:07:18.080 things that are important for your workplace. So to me, 0:07:18.760 --> 0:07:21.880 I think that social capital will always be important and 0:07:21.920 --> 0:07:24.240 I think we have learned maybe some new skills and 0:07:24.320 --> 0:07:26.720 some of the old skills that were there. I think 0:07:26.720 --> 0:07:29.080 I'm going to be really, really learned by all of 0:07:29.200 --> 0:07:34.640 us and exercised in different ways about depending on the team. 0:07:34.760 --> 0:07:39.480 There's a big debate happening right now about remote work surveillance, 0:07:39.560 --> 0:07:42.000 or at least that's what the critics call it, satia. 0:07:42.320 --> 0:07:44.680 What's your point of view on companies that think they 0:07:44.680 --> 0:07:49.400 need to track their employees through technology and whether Microsoft's 0:07:49.440 --> 0:07:53.280 products or tools should enable that? No, first of all, 0:07:53.320 --> 0:07:56.480 I think any product, including all of our products, have 0:07:56.600 --> 0:08:02.320 to be built ensuring that privacy, privacy regulation, privacy laws 0:08:02.400 --> 0:08:06.120 by country are all built right into the product. So 0:08:06.280 --> 0:08:08.760 let's start with that. But if you sort of say 0:08:08.840 --> 0:08:13.600 what are all these tools for? Ultimately, for the business? 0:08:13.640 --> 0:08:17.840 These tools are about really helping their employees thrive, because 0:08:18.040 --> 0:08:22.200 the only way of business is successful and productive is 0:08:22.240 --> 0:08:25.600 if employees feel that sense of empowerment, that sense of 0:08:25.840 --> 0:08:29.440 energy and connection for the company's mission and are doing 0:08:29.520 --> 0:08:32.719 meaningful work. And so to me it's not about surveillance, 0:08:32.840 --> 0:08:35.960 it's more about helping employees thrive. That needs to be 0:08:36.280 --> 0:08:41.360 the goal, goal of even using these tools. Satya, inflation 0:08:41.400 --> 0:08:43.520 is at a record high. We heard Ryan mentioned the 0:08:43.600 --> 0:08:46.920 word uncertainty several times. One of your executives recently at 0:08:46.920 --> 0:08:50.520 a Goldmen conference, said it's the most uncertain economic environment 0:08:50.559 --> 0:08:53.600 we've seen in decades. How would you describe the level 0:08:53.679 --> 0:08:57.240 of uncertainty you are seeing right now and how that's 0:08:57.240 --> 0:09:04.360 impacting your outlook? Yeah, I mean the constraints are real. Um, 0:09:04.400 --> 0:09:11.760 you know, inflation, Um is definitely all around us, uh, 0:09:11.800 --> 0:09:14.560 and different parts of the world have different type of 0:09:14.600 --> 0:09:18.040 economic growth, but the constraints, I think, are being felt 0:09:18.040 --> 0:09:20.959 by everyone. So to me, I always go back emily 0:09:21.040 --> 0:09:24.679 to the point that in an uncertain time, in an 0:09:24.720 --> 0:09:29.640 inflationary time, software is the deflationary force. So to me, 0:09:30.360 --> 0:09:34.840 staying super focused as a company ensuring that our customers 0:09:34.880 --> 0:09:38.160 are able to do more with less. I think is 0:09:38.200 --> 0:09:40.840 going to be the key thing that we have to 0:09:40.840 --> 0:09:43.559 accomplish in the quarters ahead. So, in terms of outlook, 0:09:44.320 --> 0:09:49.120 I am optimistic about Microsoft's value proposition helping our customers. 0:09:49.160 --> 0:09:53.840 I'm optimistic about our share, but we're not immune from 0:09:53.920 --> 0:09:58.000 anything that is a macroeconomic headwind. But we go into 0:09:58.040 --> 0:10:02.120 this with knowing that fully well that the digital skills 0:10:02.200 --> 0:10:05.880 we have, the digital products we have and software fundamentally 0:10:06.400 --> 0:10:09.320 is probably going to be the most useful tool that 0:10:09.320 --> 0:10:12.800 will help us tame inflation where because it's a deflationary force. 0:10:15.000 --> 0:10:17.800 So Tim Cook told me apple is going to be 0:10:17.800 --> 0:10:22.400 more deliberate about spending as the macro economic crisis continues. 0:10:22.440 --> 0:10:26.079 How would you describe Microsoft's strategy and if you are 0:10:26.120 --> 0:10:29.160 going to be more conservative, how much longer do you 0:10:29.200 --> 0:10:34.280 plan to be more conservative? Yeah, I mean two points. 0:10:34.360 --> 0:10:37.280 One is we've grown a lot in the sense in 0:10:37.440 --> 0:10:42.160 last year we grew seventy plus thousand people joined Microsoft. 0:10:42.840 --> 0:10:46.120 So I do think we are going to be more deliberate. 0:10:46.400 --> 0:10:48.680 When I said what does that deliberate mean? It means 0:10:48.760 --> 0:10:51.720 wherever we need to grow, we will grow. Where we 0:10:51.800 --> 0:10:54.360 need to be more productive, which is everywhere, we will 0:10:54.400 --> 0:10:56.840 be also, in fact, taking the same medicine, which is 0:10:56.840 --> 0:10:59.959 doing more with less. So I think it's a great opportunity, 0:11:00.040 --> 0:11:03.360 quite frankly, for us at Microsoft to practice what we preach, 0:11:03.400 --> 0:11:05.840 which is to be able to make sure that we 0:11:05.920 --> 0:11:09.320 take the seventy people, make them feel part of Microsoft's 0:11:09.679 --> 0:11:14.520 purpose and mission, really help us improve our culture because 0:11:14.559 --> 0:11:17.280 of all the things that they can contribute to our workplace. 0:11:17.840 --> 0:11:20.079 And then, of course, we have many businesses that are 0:11:20.120 --> 0:11:22.600 really doing super well and we'll continue to grow. But 0:11:22.679 --> 0:11:26.400 we will also be looking at what the macroeconomic situation is. 0:11:26.440 --> 0:11:31.160 But I feel very confident that between the productivity gains 0:11:31.240 --> 0:11:33.160 as well as the growth we will have, we'll be 0:11:33.200 --> 0:11:38.640 able to navigate the waters. Bryan, tech stocks have taken 0:11:38.640 --> 0:11:41.880 a beating. You know, Microsoft, as as Satia said, has 0:11:41.880 --> 0:11:43.800 not been immune to this. This is a key way 0:11:43.840 --> 0:11:48.880 that tech companies have retained their employees by the the 0:11:48.880 --> 0:11:52.560 the attraction of equity. How do you see Microsoft and 0:11:52.559 --> 0:11:57.679 other companies coping with this? It's really about attracting people 0:11:57.679 --> 0:11:59.800 who align with the mission and vision of what it 0:11:59.840 --> 0:12:03.680 is you're trying to build. You think about Linkedin when 0:12:03.679 --> 0:12:08.199 we build great products, people get jobs, they start companies, 0:12:08.480 --> 0:12:11.920 they learn new skills. We sit at the intersection of 0:12:11.960 --> 0:12:15.400 what I call doing good and doing well and that's 0:12:15.400 --> 0:12:18.920 a very empowering thing to our employees who want to 0:12:18.960 --> 0:12:22.000 come and work on something like Linkedin that can have 0:12:22.080 --> 0:12:25.320 such an amazing, uh and productive and, uh you know, 0:12:25.440 --> 0:12:30.520 valuable impact on professionals globally. So I see you know 0:12:30.800 --> 0:12:35.360 we recently just reiterated and revisited uh and enhanced our 0:12:35.360 --> 0:12:37.640 culture and guys of our company to ensure that we 0:12:37.679 --> 0:12:41.240 have the right foundation to attract the right employees moving forward. 0:12:41.679 --> 0:12:46.600 But again, I just really feel this strong move in 0:12:46.640 --> 0:12:50.720 the world towards uh culture and values being more important 0:12:50.720 --> 0:12:53.240 than it ever has, especially to attract the right talent 0:12:53.360 --> 0:12:57.600 your company. So, Satia, one more on this and then 0:12:57.600 --> 0:13:00.000 we'll move on. But you know, we know Microsoft won't 0:13:00.040 --> 0:13:02.760 be filling some open roles. You've already said that you're 0:13:02.760 --> 0:13:05.560 eliminating some contractor positions, but give us a sense of 0:13:05.600 --> 0:13:08.080 the scope. Well, some of the key priorities like Azure 0:13:08.720 --> 0:13:16.319 or security be impacted? No, I mean our core businesses 0:13:16.400 --> 0:13:21.240 were of Microsoft cloud, whether security or our infrastructure, data 0:13:21.280 --> 0:13:24.360 and AI businesses, which is what predominantly is represented in 0:13:24.440 --> 0:13:28.079 Asia or Microsoft. Five, our dynamics. Six. Five. These are 0:13:28.120 --> 0:13:31.680 massive growth businesses on a very large base. So there's 0:13:31.679 --> 0:13:34.440 going to be growth all around them, but it's all 0:13:34.480 --> 0:13:36.600 going to be about what roles have to grow. As 0:13:36.600 --> 0:13:38.960 I said, our job nuvel one is to make sure 0:13:39.000 --> 0:13:41.520 that the growth we've had is all sort of landing 0:13:42.160 --> 0:13:45.679 in a very productive way to drive the business is 0:13:45.760 --> 0:13:48.840 going forward. Even when it comes to our consumer businesses, 0:13:49.200 --> 0:13:51.800 we want we know that. You know with windows and 0:13:51.920 --> 0:13:55.200 with our PC there was definitely a pull forward, but 0:13:55.360 --> 0:13:58.240 we just launched a new release of windows eleven because 0:13:58.320 --> 0:14:00.600 at some level now it's about being able to take 0:14:00.640 --> 0:14:05.240 that one plus billion installed base and making the experience better. 0:14:05.280 --> 0:14:09.480 So we have some fantastic opportunities. There are browsers growing share, 0:14:09.480 --> 0:14:13.240 our gamings growing share, so we're going to double down. Obviously, 0:14:13.280 --> 0:14:16.720 Ryan talked about Linkedin. Again, we're not immune to the 0:14:16.880 --> 0:14:21.240 macroeconomic headwinds, but in every one of the businesses there 0:14:21.280 --> 0:14:24.440 are pockets of growth and that's where we will double down. 0:14:26.760 --> 0:14:28.920 And you know, since you're joining us from London, on 0:14:28.920 --> 0:14:31.640 a slightly different topic, I have to ask you know, 0:14:31.720 --> 0:14:35.760 Microsoft seemed to be expecting more regulatory scrutiny of the 0:14:35.760 --> 0:14:38.600 activision deal in the UK, but they've just said they're 0:14:38.600 --> 0:14:42.160 going to escalate their investigation. Have you been surprised by 0:14:42.200 --> 0:14:46.520 the level of concern that regulators there have expressed? When 0:14:46.560 --> 0:14:52.000 I look at that, fundamentally we think that are sort 0:14:52.040 --> 0:14:55.280 of entry for us in gaming. We have one goal, 0:14:55.800 --> 0:14:58.680 which is to bring more games to more gamers on 0:14:58.800 --> 0:15:04.080 all platforms and provide more choice for publishers everywhere and 0:15:04.120 --> 0:15:07.720 developers everywhere. Uh, and so everything that we're doing with 0:15:07.920 --> 0:15:15.200 our content, with our sub our cloud and community really 0:15:15.280 --> 0:15:18.400 is about driving that choice and that opportunity, and so 0:15:18.520 --> 0:15:21.600 we feel very, very confident. Of course, any acquisition of 0:15:21.640 --> 0:15:24.160 the size will go through scrutiny, but we feel very, 0:15:24.240 --> 0:15:27.280 very confident that will come out. You know, we are 0:15:27.400 --> 0:15:30.760 number four, number five, depending on how you count, in gaming. 0:15:30.800 --> 0:15:33.120 In fact, the number one player, in this case Sony, 0:15:33.200 --> 0:15:35.880 I think, even in this period, has acquired three companies. 0:15:36.240 --> 0:15:40.080 So if this is about competition, let us have competition. 0:15:42.000 --> 0:15:45.240 That was Microsoft CEO sat in Nodella and Linkedin CEO 0:15:45.600 --> 0:15:48.520 Ryan Ris Lanski, speaking with our very own Emily Chang 0:15:49.200 --> 0:15:52.120 coming up. Millions of people turned to twitch daily to 0:15:52.160 --> 0:15:56.560 watch live stream videos. That includes predators exploiting kids through 0:15:56.560 --> 0:15:59.840 the site. Will share more that my colleagues investigation into 0:16:00.040 --> 0:16:17.840 which this is Bloomberg and eye opening. Bloomberg report is 0:16:17.840 --> 0:16:22.440 shedding light on some dangers on the popular livestream platform twitch. Twitch, 0:16:22.560 --> 0:16:25.280 which is owned by Amazon and touts thirty one million 0:16:25.360 --> 0:16:29.120 daily visitors, is one of the most popular platforms for Gamers. 0:16:29.120 --> 0:16:32.480 Bloomberg reported that a network of child predators have used 0:16:32.480 --> 0:16:36.800 the platform to track children. Bloomberg Cecilia Denastasio, covers the 0:16:36.880 --> 0:16:40.520 video game industry and broke this story. Cecilia, what did 0:16:40.520 --> 0:16:43.760 you learn in the course of your reporting? Twitch says 0:16:43.800 --> 0:16:47.680 it doesn't allow children under thirteen to use the platform. However, 0:16:48.160 --> 0:16:52.160 unlike streaming competitors, there are relatively few barriers preventing children 0:16:52.160 --> 0:16:56.040 from getting on the APP. Bloomberg found that there are 0:16:56.360 --> 0:17:00.560 people out there, over two thousand of them, who stramatically 0:17:00.640 --> 0:17:04.240 follow accounts that seem to belong to children on the platform, 0:17:04.280 --> 0:17:07.040 and around two dred and eighty thousand accounts that apparently 0:17:07.080 --> 0:17:09.880 belong to children were targeted this way, according to our research. 0:17:10.240 --> 0:17:13.120 Sec I want to bring up the statement from the company, 0:17:13.240 --> 0:17:16.679 from twitch, and I'll read it to you. Preventing child 0:17:16.720 --> 0:17:22.119 harm is one of our most fundamental responsibilities as a society. 0:17:22.160 --> 0:17:25.280 We do not allow children under thirteen to use twitch 0:17:25.680 --> 0:17:28.399 and preventing our service from being used for harm is 0:17:28.440 --> 0:17:31.800 one of our biggest priorities. We know that online platforms 0:17:31.840 --> 0:17:34.520 can be used to cause harm to children and we 0:17:34.560 --> 0:17:38.000 have made extensive investments over the last two years to 0:17:38.119 --> 0:17:41.600 better stay ahead of bad actors and prevent any users 0:17:41.840 --> 0:17:45.840 who maybe under thirteen from accessing twitch. So they underline 0:17:45.920 --> 0:17:47.840 the policy, which is no one under the age of 0:17:47.880 --> 0:17:51.639 thirteen can use the platform. What do we know about 0:17:51.680 --> 0:17:55.960 how twitch moderates that monitors the use of the platform? 0:17:56.000 --> 0:17:58.679 Sure so. Twitch is a live streaming platform and, unlike 0:17:58.720 --> 0:18:02.640 platforms like youtube, where videos are recorded, it's very challenging 0:18:03.040 --> 0:18:06.840 to moderate live video because it's happening in real time, 0:18:07.280 --> 0:18:11.480 especially for child sexual abuse material Um. Twitch is figuring 0:18:11.480 --> 0:18:14.560 out solutions to a problem on the fly, and it's 0:18:14.560 --> 0:18:16.800 a problem that not a lot of other platforms face 0:18:16.880 --> 0:18:19.680 at the scale that twitch does, and so twitch has 0:18:19.760 --> 0:18:23.560 quadrupled its Law Enforcement Response Team over the last two years. 0:18:23.880 --> 0:18:27.159 Twitch has done a lot of resources into preventing Um 0:18:27.320 --> 0:18:31.080 children from getting on twitch and from streaming however, Bloomberg's 0:18:31.080 --> 0:18:33.720 report has found that these solutions have fallen short and 0:18:33.760 --> 0:18:38.280 the problem has been exacerbated over the pandemic exaspected over 0:18:38.320 --> 0:18:41.600 the pandemic this this is an issue that we've covered 0:18:41.640 --> 0:18:46.879 in the show. Across the industry, social media platforms, online 0:18:46.920 --> 0:18:51.600 platforms generally speaking, what are regulators doing, I suppose at 0:18:51.640 --> 0:18:56.480 federal level, to tackle this issue? It's a very challenging 0:18:56.560 --> 0:18:59.760 issue to tackle. One thing that is being paid at 0:18:59.800 --> 0:19:02.960 ten shoot attention to right now, of course, is advertising 0:19:02.960 --> 0:19:05.920 to children on these platforms. There's a lot of resources 0:19:05.920 --> 0:19:10.840 being dedicated to preventing children from UM receiving messages from 0:19:10.840 --> 0:19:14.560 companies when they are not age appropriate to receive those messages. 0:19:14.960 --> 0:19:18.520 When it comes to moderation, it's a multi pronged issue 0:19:18.920 --> 0:19:21.560 that is highly technical and a lot of the time 0:19:21.600 --> 0:19:24.760 tech companies are the ones left in charge of moderating 0:19:24.760 --> 0:19:28.480 their own platforms. Your pole is out. What happens next? 0:19:28.600 --> 0:19:32.040 What's the response? The response has been very large from 0:19:32.080 --> 0:19:35.879 the twitch community Um and from people who, you know, 0:19:35.920 --> 0:19:38.439 watch their favorite gamers livestream on the platform, and some 0:19:38.480 --> 0:19:42.280 of these gamers themselves have commented that this Um, that 0:19:42.359 --> 0:19:46.600 this is unacceptable for the company Um, through which they 0:19:46.640 --> 0:19:50.679 make a living. However, twitch itself has not made a 0:19:50.720 --> 0:19:53.000 move to change some of the features that have enabled 0:19:53.000 --> 0:19:55.439 predators to find and target children on the platform, so 0:19:55.480 --> 0:19:58.200 it's to be seen whether that will happen. All Right, Bloomberg, 0:19:58.240 --> 0:20:10.000 Cecilia Denis Sassio, thank you. Meta platforms has been sued 0:20:10.040 --> 0:20:13.399 for Skirting Apple Privacy rules in a proposed class action 0:20:13.480 --> 0:20:17.679 lawsuit filed in San Francisco Federal Court to facebook. Users 0:20:17.680 --> 0:20:22.840 claim the company built a secret workaround two apples privacy 0:20:22.920 --> 0:20:27.640 rules and violated state and federal laws limiting unauthorized collection 0:20:27.960 --> 0:20:32.560 of personal data. Bloombergs learned that the Securities and Exchange 0:20:32.560 --> 0:20:35.439 Commission is set to let Wall Street keep payment for 0:20:35.520 --> 0:20:39.359 order flow deals. According to sources, the practice can involve 0:20:39.440 --> 0:20:43.240 one brokerage routing retail stock trade orders to another firm 0:20:43.320 --> 0:20:47.360 for execution rather than onto a brokerage or exchange. Backers 0:20:47.359 --> 0:20:51.240 say it's led to commission free trading, championed by Robin Hood, 0:20:51.600 --> 0:20:54.159 but critics question whether the trade is actually get the 0:20:54.160 --> 0:20:57.280 best price. All this is part of an SEC overhaul 0:20:57.520 --> 0:21:03.200 of stock trading rules. Amazon's first Thursday night football game 0:21:03.240 --> 0:21:06.560 of the season drew an audience of thirteen million viewers. 0:21:06.720 --> 0:21:10.200 That's according to data from measure measurement firm Nielsen, which 0:21:10.200 --> 0:21:13.280 suggests that NFL fans across the US could find the 0:21:13.359 --> 0:21:17.080 game last Thursday. That's despite it not being available on 0:21:17.160 --> 0:21:23.000 TV nationwide. Amazon's guaranteeing advertisers it's exclusive coverage will reach 0:21:23.040 --> 0:21:25.600 more than twelve million viewers per game, but that's down 0:21:25.640 --> 0:21:28.720 from the sixteen point four million tuning in on Thursday 0:21:28.840 --> 0:21:33.560 nights last year across Fox, the NFL network and Amazon. 0:21:41.520 --> 0:21:44.480 Welcome back to Bloomberg Technology. I'm Ed Ludlow in New York. 0:21:44.600 --> 0:21:47.359 Dream Force is back in San Francisco and it's the 0:21:47.359 --> 0:21:50.840 biggest convention to hit the tech capital since the pandemic era. 0:21:51.000 --> 0:21:56.119 Thousands heading to the annual salesforce conference, including Bloomberg Technologies 0:21:56.160 --> 0:21:59.040 Emily Chang. She sat down with salesforce chair and CO 0:21:59.200 --> 0:22:04.399 CEO Mark Nil Stalk about his next steps. To have 0:22:04.480 --> 0:22:09.919 forty folks here in San Francisco in the new mascony 0:22:10.080 --> 0:22:13.280 center is beautiful. Every hotel is sold out from here 0:22:13.320 --> 0:22:17.560 to San Jose. Every AIRBNB is sold out. It's amazing 0:22:17.960 --> 0:22:20.480 and they're all having such a good time and and 0:22:20.600 --> 0:22:23.000 learning about technology. And learning about how to connect with 0:22:23.000 --> 0:22:25.280 our customers in a new way using sales worth. We're 0:22:25.280 --> 0:22:26.600 gonna talk a little bit about the state of the 0:22:26.640 --> 0:22:29.560 city in a moment. At first, you announced new profitability 0:22:29.560 --> 0:22:35.080 goals yesterday, long term profitability, aiming for adjusted operating margin 0:22:35.080 --> 0:22:40.480 in what makes you feel so ambitious in a downturn? Well, 0:22:40.520 --> 0:22:43.840 you probably saw this quarter we delivered seven point seven billion. 0:22:43.960 --> 0:22:47.159 It was larger than in an S A P, a 0:22:47.240 --> 0:22:49.800 company that you know we both admire so greatly. But 0:22:49.840 --> 0:22:52.680 now we're the largest enterprise APPS company in the in 0:22:52.760 --> 0:22:55.879 the world. That's very exciting, and so we have the 0:22:55.920 --> 0:22:58.600 highest revenue and now we want to have very strong 0:22:59.160 --> 0:23:01.120 margins and we've taking a goal that when we get 0:23:01.119 --> 0:23:04.280 to fifty billion, which is right around the corner, we 0:23:04.320 --> 0:23:10.879 will have operating margin. So you're also doing these carbon offsets, 0:23:10.920 --> 0:23:14.679 which is fairly unique, more net zero offerings. Do you 0:23:14.720 --> 0:23:17.960 see this as philanthropy or do you see real revenue 0:23:18.280 --> 0:23:21.520 generated from the carbon accounting market? Well, I think that 0:23:21.560 --> 0:23:24.359 when you think about a modern business today, you have 0:23:24.400 --> 0:23:26.399 to have great revenue, you have to have a great margin. 0:23:27.280 --> 0:23:30.280 You also have to look at your overall capital allocation. 0:23:30.320 --> 0:23:33.359 We're buying back ten billion dollars of our stock. We 0:23:33.520 --> 0:23:37.320 just promoted our lead director, Robin Washington. But when you 0:23:37.320 --> 0:23:42.520 think about the values of a company today, trust, customer success, Innovation, quality. 0:23:42.920 --> 0:23:45.400 We've spoken about all of those emily for a decade 0:23:45.520 --> 0:23:49.439 or more. Now we're talking about sustainability. Everybody has a 0:23:49.480 --> 0:23:53.840 personal story about the environment. Everybody knows what's happening. So 0:23:54.000 --> 0:23:57.000 every company needs to go net zero, and so we 0:23:57.040 --> 0:23:58.920 have a new net zero cloud, we have a net 0:23:59.000 --> 0:24:02.680 zero market play, we have the ability to help all 0:24:02.680 --> 0:24:05.600 of our customers go net zero. This is extremely important 0:24:05.920 --> 0:24:09.040 and we even started, you know, our trillion tree program 0:24:09.119 --> 0:24:13.280 one t dot Org. We made phenomenal progresses. Is Very 0:24:13.320 --> 0:24:15.960 important that we get a trillion trees. We need to 0:24:16.000 --> 0:24:20.600 sequester two gigatons of carbon and we need to energize 0:24:20.600 --> 0:24:23.399 an EGO Preneura Revolution. And we can do all that 0:24:23.440 --> 0:24:26.080 and we are doing it here at dream. Worse meantime, 0:24:26.119 --> 0:24:29.960 the economy is in a major slop. You've got record inflation, 0:24:30.200 --> 0:24:34.160