WEBVTT - Big Companies Exit From Russia Continues 0:00:03.080 --> 0:00:06.360 From the heart of where innovation, money and power colli 0:00:07.200 --> 0:00:11.720 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:11.760 --> 0:00:27.280 Emily Jay. I'm Emily Changese, San Francisco, and this is 0:00:27.280 --> 0:00:30.200 Bloomberg Technology coming up in the next hour. From Netflix 0:00:30.240 --> 0:00:33.920 to TikTok to Samsung. The exitus from Russia continues, and 0:00:34.000 --> 0:00:37.920 the pressure to do more files on plus coin base 0:00:37.960 --> 0:00:40.600 starts blocking sanctioned Russian users. What about the rest of 0:00:40.600 --> 0:00:43.279 the crypto world? And f t X president joins us 0:00:43.320 --> 0:00:46.640 this hour to talk about their conversations with regulators and 0:00:46.720 --> 0:00:49.680 new services being launched in Europe, in the Middle East. 0:00:51.000 --> 0:00:54.320 And Apple holds its first event of the year Tuesday. 0:00:54.560 --> 0:00:57.960 You can expect updates to the iPhone, iPad and knock lines. 0:00:58.000 --> 0:01:01.080 We're gonna bring you a preview later this Now. As 0:01:01.120 --> 0:01:03.959 the conflict in Ugraine Ukraine continues to escalate, so does 0:01:03.960 --> 0:01:06.760 the risk of cyber attacks against Ukraine and its allies. 0:01:07.040 --> 0:01:09.240 Just weeks ago, we are now learning that hackers gained 0:01:09.240 --> 0:01:12.880 access to computers belonging to current and PUT and former employees. 0:01:12.920 --> 0:01:16.760 That nearly two dozen major natural gas suppliers and exporters, 0:01:16.800 --> 0:01:21.200 including Chevron and Kinder Morgan EQT Corps, the largest producer 0:01:21.200 --> 0:01:23.479 of national grass in the United States, also saying it's 0:01:23.480 --> 0:01:25.680 been targeted by a rising number of cyber attacks since 0:01:25.720 --> 0:01:29.039 the start of the Russian invasion of Ukraine. Here's CEO 0:01:29.280 --> 0:01:33.000 Toby Rice. We have seen the hits on our system 0:01:33.440 --> 0:01:39.360 increase significantly since this UH conflicts began in Europe. The 0:01:39.600 --> 0:01:43.440 biggest threat to to Russia is American natural gas. So 0:01:43.520 --> 0:01:45.560 when you think about what they're going to do to 0:01:45.959 --> 0:01:49.400 stop to to preserve their power, it's shut down American 0:01:49.440 --> 0:01:53.640 oil and gas. I want to bring in Matthew Only 0:01:53.680 --> 0:01:55.360 now for more on this. He's the director of Threat 0:01:55.400 --> 0:01:58.200 Intelligence at Cisco Tells Intelligence Group. Matt, thank you so 0:01:58.320 --> 0:02:00.800 much for joining us I UNDERS and you're seeing a 0:02:00.840 --> 0:02:05.080 new wave of crowdsourced cyber attacks on both sides of 0:02:05.120 --> 0:02:07.360 this conflict. How would you describe the state of play? 0:02:07.520 --> 0:02:11.640 What are you seeing? It's a it's a pretty crazy 0:02:11.680 --> 0:02:14.240 situation right now in terms of Traditionally, we look at 0:02:14.240 --> 0:02:17.760 these kind of UH conflicts and we have one side 0:02:17.760 --> 0:02:20.800 and another side, and maybe in this case Russia and Ukraine. UH. 0:02:20.919 --> 0:02:24.079 Now we have UM the Continent Ransomware group coming out 0:02:24.080 --> 0:02:27.040 on the side of Russia. We have the Ukrainian cyber 0:02:27.040 --> 0:02:31.919 police soliciting volunteers online to attack websites in Russia. Um. 0:02:32.080 --> 0:02:35.440 We we have lots of different players who feel a 0:02:35.480 --> 0:02:36.919 now as the time for them to kind of put 0:02:36.919 --> 0:02:39.200 their stake in the ground and go after what they 0:02:39.200 --> 0:02:41.360 believe in, and that that kind of raises the stakes 0:02:41.360 --> 0:02:44.440 on the international stage of a possible misunderstanding between nations 0:02:45.560 --> 0:02:50.079 and what could that lead to a possible misunderstanding between nations? Yeah, look, 0:02:50.120 --> 0:02:53.600 I mean look, attribution is always difficult, like knowing what's 0:02:53.639 --> 0:02:55.919 happening when when you're looking at attacks on the ground, 0:02:56.280 --> 0:02:58.880 and nations have to respond to that. So if someone 0:02:59.200 --> 0:03:03.960 hits something in Russia, for example, and Russia misinterprets that 0:03:04.040 --> 0:03:05.960 as an attack in the United States or an attacks 0:03:06.000 --> 0:03:08.799 solicited by the United States, then their response will come 0:03:08.880 --> 0:03:11.720 the way the United States. Um, it's it just adds 0:03:11.800 --> 0:03:15.960 chaos to an already dangerous situation. Well seas also urging 0:03:16.040 --> 0:03:18.840 US companies to lock down their systems in case the 0:03:18.919 --> 0:03:22.919 Russian government or private ackers take action. It could in 0:03:22.919 --> 0:03:26.320 fact already be happening. You've got companies like CrowdStrike and 0:03:26.440 --> 0:03:30.400 paying and cloud fare offering their help, offering their services 0:03:30.440 --> 0:03:32.280 for free. What would you say as the threat level 0:03:32.360 --> 0:03:37.480 right now against US businesses, U S entities. Yeah, the 0:03:37.480 --> 0:03:41.000 the it's all down to how Putin decides to engage 0:03:41.080 --> 0:03:44.559 the West, um, how do they respond to these unprecedentations 0:03:44.560 --> 0:03:47.160 that have been put in place. Ultimately, we think that 0:03:47.160 --> 0:03:50.320 there's largely they're very capable in the energy sector. We've 0:03:50.320 --> 0:03:53.720 seen them for decade or more UM in the energy 0:03:53.760 --> 0:03:57.800 sector gaining a foothold gatting understanding of those systems UM, 0:03:57.960 --> 0:04:00.160 and so there's a threat there. But we also think 0:04:00.160 --> 0:04:01.800 that there's a possibility that there could be a tip 0:04:01.800 --> 0:04:04.080 for cats or thing where they're going after the financial 0:04:04.120 --> 0:04:06.280 sector as well, which is a harder net to crack 0:04:06.520 --> 0:04:09.920 UM in the West. I want to take a look 0:04:09.960 --> 0:04:13.320 at Ukraine specifically, and you talked about all of these 0:04:13.320 --> 0:04:16.600 different entities coming to the defense of Ukraine. We're talking 0:04:16.640 --> 0:04:19.720 about from the EU to Lithuania to Romania to all 0:04:19.760 --> 0:04:23.279 of these different companies. How effective do you think this 0:04:23.440 --> 0:04:26.120 has been and is this a path towards sort of 0:04:26.520 --> 0:04:30.600 further deterrence cyber deterrence in the future when you see 0:04:30.760 --> 0:04:34.120 the rest of the world piling on. Yeah, I have 0:04:34.200 --> 0:04:36.640 a hard time thinking about cyber deterrence when you see 0:04:36.640 --> 0:04:39.560 the level of kinetic warfare going on, like cyber uh 0:04:39.640 --> 0:04:41.719 is a piece of this story, but they're this human 0:04:41.800 --> 0:04:46.800 side is also much much more more distressing. What I 0:04:46.800 --> 0:04:49.800 would say in Ukraine, Um, it looks like Russia has 0:04:49.920 --> 0:04:54.360 underestimated on all battle spaces Ukraine, both in terms of 0:04:54.560 --> 0:04:58.120 how their military respond and how the West will respond, 0:04:58.200 --> 0:05:01.200 but also in terms of how solid their cyber defenses are. 0:05:01.880 --> 0:05:04.040 You Train spent the last few years well in terms 0:05:04.040 --> 0:05:07.880 of putting that, putting together defenses and and you know, 0:05:08.120 --> 0:05:10.200 Cisco is proud to have a role in that in 0:05:10.440 --> 0:05:14.560 in kind of providing actually on the ground support right 0:05:14.600 --> 0:05:17.960 now for critical infrastructure, ensuring that those systems stay up 0:05:17.960 --> 0:05:20.919 when the Ukrainian people need them the most. There's also 0:05:21.240 --> 0:05:26.239 movement in US Congress to take greater action on cyber attacks. 0:05:26.320 --> 0:05:29.760 You've got massive cyber legislation which would require companies and 0:05:29.800 --> 0:05:34.480 critical sectors to alert the government of potential hacks or ransomware. 0:05:34.480 --> 0:05:36.720 You've got the ball now in the house is core. 0:05:36.839 --> 0:05:39.640 What's your take on this legislation? Is this something that 0:05:39.720 --> 0:05:42.919 you would like to see advance? Anytime I see the 0:05:43.000 --> 0:05:45.560 government like you have to notify us of something. My 0:05:45.640 --> 0:05:47.039 question is, then, what are you going to do with 0:05:47.080 --> 0:05:50.440 that information? UM. I like that it's centered in and 0:05:50.440 --> 0:05:53.800 around CISA because CISA has positioned itself as the sort 0:05:53.839 --> 0:05:56.960 of go to agency in the United States to provide 0:05:57.000 --> 0:06:01.200 information both to the private sector and to government networks 0:06:01.240 --> 0:06:04.360 at risk and gives a really good understanding of what 0:06:04.400 --> 0:06:07.400 our actors are using UM in terms of their attacks. 0:06:07.440 --> 0:06:10.920 So I think centering information there signals that's how they 0:06:10.920 --> 0:06:12.760 want the information used, and I think that's a good 0:06:12.760 --> 0:06:16.080 place to put that information. Now, Look, the war on 0:06:16.200 --> 0:06:18.800 Ukraine is escalating, it seems by the hour. What does 0:06:18.800 --> 0:06:22.160 that escalation look like in cyberspace? How bad could this 0:06:22.320 --> 0:06:26.440 get on both sides? You know? Again, you know the 0:06:26.480 --> 0:06:29.320 cyber States element has large has been much quieter than 0:06:29.360 --> 0:06:34.279 we anticipated. And I think that's because UM, that that 0:06:34.720 --> 0:06:36.960 the Russia has kind of underestimated what they need to 0:06:37.000 --> 0:06:38.760 do in the States, and I think right now they're 0:06:38.760 --> 0:06:42.479 gonna so overcompensate in the connecting kinetic space that that 0:06:42.600 --> 0:06:46.679 the cyberspace side inside of Ukraine just isn't of interest 0:06:46.720 --> 0:06:49.560 to them. And I think they're using their best resources 0:06:49.640 --> 0:06:52.760 right now engaging an espionage on the West to understand 0:06:52.920 --> 0:06:55.520 what the red lines are and what the excess strategies 0:06:55.520 --> 0:07:00.280 are for everybody. Matthew Only of Cisco, Matt thank you 0:07:00.320 --> 0:07:04.200 so much for bringing this perspective. Meantime, the Russian government 0:07:04.279 --> 0:07:07.400 blocked Facebook as part of its efforts to silence descent 0:07:07.440 --> 0:07:10.840 and limit information about its invasion of Ukraine. Opposed from 0:07:10.880 --> 0:07:15.560 Russia's communications regulator, raz Kammanadzer said Facebook would be blocked 0:07:15.600 --> 0:07:20.080 because of quote discrimination against Russian media and information sources. 0:07:20.520 --> 0:07:24.880 Facebook previously banned Russian state backed media accounts from operating 0:07:24.960 --> 0:07:26.960 in the European Union in an effort to cut down 0:07:27.000 --> 0:07:39.880 on Russian propaganda and misinformation a continued exodus of businesses 0:07:39.880 --> 0:07:43.120 out of Russia. How does MasterCard, American Express and Visa 0:07:43.240 --> 0:07:51.480 suspending operations their impact everyday Russians? Bloombergs Victoria Cavalery explains, Visa, MasterCard, 0:07:51.520 --> 0:07:54.720 and American Express have become the latest international companies to 0:07:54.800 --> 0:07:57.840 suspend operations in Russia to punish the country over its 0:07:57.840 --> 0:08:01.280 invasion of Ukraine. What this means from a practical standpoint 0:08:01.320 --> 0:08:03.680 is that if you have a Visa master Card issued 0:08:03.680 --> 0:08:06.320 by a Russian institution and you attempt to use it 0:08:06.360 --> 0:08:08.840 outside of the country. Let's say here in New York 0:08:08.960 --> 0:08:11.600 to buy a cup of coffee, that transaction will not 0:08:11.640 --> 0:08:14.480 go through. Similarly, if you have a visa or MasterCard 0:08:14.520 --> 0:08:16.760 issued outside of Russia and you attempt to use it 0:08:17.240 --> 0:08:20.520 with a Russian vendor, that transaction will also no longer work. 0:08:20.560 --> 0:08:22.920 It will be denied. So, for example, if you live 0:08:22.920 --> 0:08:25.720 in Russia and you have a bank with a foreign 0:08:25.720 --> 0:08:29.280 institution UM say Chase in the US UM and you 0:08:29.320 --> 0:08:32.200 have a card issued through Chase, you won't be able 0:08:32.280 --> 0:08:37.640 to make any purchases in Russia. Here's what this means 0:08:37.640 --> 0:08:40.319 for Russian citizens. If you live in Russia and you 0:08:40.360 --> 0:08:42.360 bank with a Russian bank and you attempt to use 0:08:42.440 --> 0:08:45.080 your visa or master card in the country, they will 0:08:45.120 --> 0:08:48.240 continue to work. The Russian Central Bank said that they 0:08:48.240 --> 0:08:51.360 can process those payments in the country. Caveat to that 0:08:51.559 --> 0:08:55.840 is that once those cards expire, they will no longer work. However, 0:08:56.360 --> 0:08:58.960 if you're a Russian citizen and you're any place else 0:08:59.000 --> 0:09:01.000 in the world and you pull out your master card 0:09:01.520 --> 0:09:05.160 and you bank with a Russian bank, you're out of luck. Further, 0:09:05.360 --> 0:09:07.520 even if you bank with a Russian bank and you 0:09:07.600 --> 0:09:11.360 try to make a foreign purchase something online, it also 0:09:11.440 --> 0:09:17.480 will not work. This is another attempt to financially isolate 0:09:17.520 --> 0:09:20.360 the Russian government and to put pressure on Russian President 0:09:20.600 --> 0:09:24.120 Vladimir Putin to get him to reverse course. In Ukraine, 0:09:24.440 --> 0:09:27.000 Western governments have rolled out a series of sanctions, and 0:09:27.080 --> 0:09:30.600 private companies like Visa and MasterCard have undertaken their own 0:09:30.640 --> 0:09:36.040 financial punishments by pausing the operations in Russia, suspending business, 0:09:36.360 --> 0:09:39.680 closing up shop. Ukrainian president had requested that Visa and 0:09:39.720 --> 0:09:43.080 MasterCard undertake these measures in the hopes that it will 0:09:43.240 --> 0:09:49.400 pressure Russia to stop the war. Meantime, other companies continue 0:09:49.400 --> 0:09:52.880 to shut down operations in Russia. Netflix says no new 0:09:52.920 --> 0:09:55.840 customers will be able to sign up, TikTok is suspending 0:09:55.880 --> 0:09:58.000 live streaming in the country after a Putin so called 0:09:58.160 --> 0:10:01.600 fake news law, and Samsung of stopping all products shipments 0:10:01.640 --> 0:10:06.000 to Russia, including smartphones and chips. Bloomberg's executive editor Tom 0:10:06.080 --> 0:10:10.320 Giles with us Now along with Economy founder David Kirkpatrick. David, Tom, 0:10:10.400 --> 0:10:13.440 thank you. Obviously, it's very complicated to figure out just 0:10:13.520 --> 0:10:17.079 how this is impacting everyday Russians versus the Russian government, 0:10:17.280 --> 0:10:21.439 versus Kuna himself, David, what do you make of this exodus? 0:10:21.440 --> 0:10:24.640 What strikes you most about these companies taking a stand, 0:10:24.640 --> 0:10:29.720 whether they have large businesses in Russia or not. Well, clearly, 0:10:29.800 --> 0:10:33.360 digital information is an intrinsic part of modern economy and 0:10:33.400 --> 0:10:36.920 how people are able to stay informed, and sadly, the 0:10:36.960 --> 0:10:39.920 Russian government does not want its people to be informed. 0:10:40.600 --> 0:10:45.120 So I think most of the consumer digital information companies 0:10:45.160 --> 0:10:49.880 like TikTok, Facebook, Google are trying their best to continue 0:10:49.880 --> 0:10:54.520 operating on the grounds that they help people stay informed 0:10:54.600 --> 0:10:57.960 at a time when otherwise they would have difficulty doing so. 0:10:58.360 --> 0:11:01.439 But many of them are finding that it's simply untenable. 0:11:01.520 --> 0:11:05.960 So Netflix and TikTok shut down in Russia because new 0:11:06.040 --> 0:11:08.560 laws that Russia has just introduced as part of their 0:11:08.600 --> 0:11:11.839 suppression of information make it possible that they are their 0:11:11.840 --> 0:11:14.839 employees might be prosecuted. So these companies are in a 0:11:14.960 --> 0:11:20.480 very difficult position now. Ukraine's Vice Prime Minister, Mikailo Federov 0:11:20.640 --> 0:11:23.040 Tom has been pretty aggressive about calling out these big 0:11:23.040 --> 0:11:26.840 tech giants, specifically, most recently, he's called on Amazon and 0:11:26.920 --> 0:11:30.880 Jeff Bezos to make some moves there. He also called 0:11:30.880 --> 0:11:34.480 on Apple and Google to shut down the Play and 0:11:34.760 --> 0:11:37.960 the App Store. Do we have any indication that Amazon, 0:11:38.480 --> 0:11:41.480 for example, is going to cut off some of its 0:11:41.520 --> 0:11:47.880 services to Russia. So overall, we haven't heard specifically from 0:11:47.920 --> 0:11:51.440 Amazon recently. Overall, you have to keep in mind, you 0:11:51.480 --> 0:11:56.000 know you asked earlier about cutting off Russia and possibly 0:11:56.040 --> 0:11:59.439 taking a hit to business. A lot of these companies 0:11:59.480 --> 0:12:02.320 buying large. Now there are some exceptions, but by and large, 0:12:02.360 --> 0:12:06.240 the technology of US technology industry is not heavily exposed 0:12:06.240 --> 0:12:09.920 to Russia. If you were to erase Russian business altogether, 0:12:09.960 --> 0:12:12.840 which some of the companies are doing, you're talking about 0:12:12.880 --> 0:12:16.360 a small sliver of overall revenue. So in terms of 0:12:16.400 --> 0:12:19.720 this being a sacrificial move on the part of big 0:12:19.800 --> 0:12:23.760 US companies, let's keep it in perspective. Now. The other 0:12:23.800 --> 0:12:26.920 thing is they're being compelled to do this in many 0:12:26.960 --> 0:12:30.200 cases because of US sanctions. You don't want to run 0:12:30.200 --> 0:12:33.560 a foul of the US rules, and every day there's 0:12:33.600 --> 0:12:36.280 another set there seems to be another set of sanctions 0:12:36.600 --> 0:12:42.280 levied against Russia. Secondarily, there's the practical implications. How can 0:12:42.360 --> 0:12:44.440 you do business even if you want to do business 0:12:44.720 --> 0:12:47.200 in a country where you can't make payments, you can't 0:12:47.200 --> 0:12:51.079 accept payments where Visa and MasterCard aren't accepted, where banking 0:12:51.840 --> 0:12:54.520 facilities are being shut down right and left. So there's 0:12:54.559 --> 0:12:57.120 the practical element, and then lastly, I think there is 0:12:57.160 --> 0:13:00.480 the moral element. It does behoove these company needs to 0:13:00.559 --> 0:13:04.720 take some sort of a moral stance, even though sacrifice. 0:13:04.760 --> 0:13:08.000 It's not necessarily going to be a big sacrifice from 0:13:08.040 --> 0:13:10.760 them on the sales side of things. We are also 0:13:10.840 --> 0:13:14.079 seeing non US companies take stance here, David, like Samsung 0:13:14.200 --> 0:13:18.440 stopping sending products and chips to Russia. Apple. I understand 0:13:18.480 --> 0:13:20.760 their their businesses in Russia is fairly small, but does 0:13:20.800 --> 0:13:24.000 Samsung have a larger business in Russian? Is that of 0:13:24.040 --> 0:13:27.240 more consequence to them? I think it will be. I 0:13:27.280 --> 0:13:29.040 think what they said is they're not going to ship 0:13:29.120 --> 0:13:32.760 new product to Russia, which means probably that Samsung phones 0:13:32.800 --> 0:13:36.439 and other equipment that's already in Russia will be um 0:13:36.960 --> 0:13:40.720 still available. But this will have major consequence, there's no 0:13:40.840 --> 0:13:45.040 question um. And I think the set of sanctions and 0:13:45.120 --> 0:13:49.520 actions in net really will hurt the people. There's no 0:13:49.559 --> 0:13:52.720 way it can avoid hurting the people. But I think 0:13:52.760 --> 0:13:55.480 that's just unavoidable as a consequence of the sanctions and 0:13:55.559 --> 0:13:59.160 the situation right, And there's a question, Tom, is it 0:13:59.679 --> 0:14:01.400 a good thing or is it the right thing to 0:14:01.440 --> 0:14:04.040 do to be hurting the Russian people, many of whom 0:14:04.240 --> 0:14:08.320 don't necessarily support this war absolutely, And that gets back 0:14:08.360 --> 0:14:11.320 to the point David made earlier is the information served. 0:14:11.360 --> 0:14:14.480 The flow of information is not something that you want 0:14:14.520 --> 0:14:17.880 to necessarily stop. If your Twitter, if your Facebook, if 0:14:17.920 --> 0:14:21.760 you're the list goes on TikTok, you know there their 0:14:21.840 --> 0:14:25.080 services are getting throttled into some degree. These companies are 0:14:25.120 --> 0:14:28.880 cutting back on their own services YouTube ad sales, for example. 0:14:29.360 --> 0:14:32.320 But do you want to deprive the Russian people of 0:14:32.360 --> 0:14:36.760 the flow of information? Say, for example, here's how you 0:14:36.760 --> 0:14:39.720 you know, here's a group of people in in solidarity 0:14:39.760 --> 0:14:43.440 over opposition to the Russian government. Here's the flow, here's 0:14:43.600 --> 0:14:46.880 actually what's going on. Here's the news and information that's 0:14:46.920 --> 0:14:51.040 actually calling uh, calling out the Russian government for for 0:14:51.160 --> 0:14:56.080 the invasion of Ukraine. Um. You know, as we've noted this, 0:14:56.080 --> 0:14:59.320 this law that was passed last week, it puts really 0:14:59.360 --> 0:15:01.760 tight limits on how you can't even talk about it. 0:15:01.840 --> 0:15:04.800 The words you can use don't call it an invasion, 0:15:04.840 --> 0:15:09.240 for example, Google search. Meantime, David as I understand it 0:15:09.280 --> 0:15:14.240 still works. Also, YouTube and WhatsApp are hugely popular in Russia. 0:15:15.120 --> 0:15:18.600 You know, are these services that you believe should stay 0:15:18.680 --> 0:15:22.000 turned on? I mean there are there are pros and 0:15:22.000 --> 0:15:25.080 cons to both arguments here. I think in the case 0:15:25.120 --> 0:15:27.600 of those three it would be beneficial if they could 0:15:27.640 --> 0:15:31.520 continue operating. I think somebody might say at Google in particular, 0:15:32.480 --> 0:15:34.680 if it were turned off, it would harm the government's 0:15:34.960 --> 0:15:37.800 ability to function and the economy, because we know everybody 0:15:37.880 --> 0:15:41.680 uses search. But for now, I think making those services 0:15:41.920 --> 0:15:46.160 still available to ordinary citizens is important. YouTube has a 0:15:46.240 --> 0:15:50.000 huge role as an information conveyor in Russia, and I 0:15:50.040 --> 0:15:53.640 think What'sapp, which is encrypted, is probably a critical tool 0:15:53.680 --> 0:15:57.680 to continue making available to the Russian people if possible. Right, 0:15:57.840 --> 0:16:01.080 certainly likely not the last of this long list of 0:16:01.120 --> 0:16:05.320 companies taking action on Russia. To Economy founder David Kirkpatrick, 0:16:05.360 --> 0:16:16.040 our very own Tom Giles, thank you both. A few 0:16:16.080 --> 0:16:18.520 other stories we continue to watch. Door Dash considered a 0:16:18.600 --> 0:16:21.240 takeover bid for London based deliver U, but the two 0:16:21.320 --> 0:16:23.880 sides failed to reach an agreement. That's according to The 0:16:23.920 --> 0:16:27.080 Sunday Times, the US food delivery service reportedly met with 0:16:27.320 --> 0:16:30.800 delivery over the summer, while exploring plans to expand in 0:16:30.920 --> 0:16:34.360 Europe instead, Door Dash Spot, the finish food delivery startup 0:16:34.440 --> 0:16:38.880 volt for about eight billion dollars, and mandy And soaring 0:16:39.000 --> 0:16:41.880 as much as after the information reported. Google is in 0:16:42.000 --> 0:16:45.280 talks to acquire the cybersecurity company, marking what would be 0:16:45.440 --> 0:16:49.440 google Second largest transaction ever. Bloomberg reported last month that 0:16:49.520 --> 0:16:51.960 Microsoft was in discussions to buy mandy And, which has 0:16:51.960 --> 0:16:57.120 a market value now about five billion dollars. Coming up 0:16:57.280 --> 0:17:00.000 beyond Ukraine, Meta and other Silicon Valley giants have another 0:17:00.160 --> 0:17:03.240 challenge on the horizon, staying attractive to tech workers here 0:17:03.640 --> 0:17:06.680 in the United States as share prices fall. All the 0:17:06.760 --> 0:17:37.600 details on that next. This is Bloomberg. Welcome back to 0:17:37.640 --> 0:17:41.240 Bloomberg Technology. I'm Emily Chang. For years, employees of Silicon 0:17:41.320 --> 0:17:44.359 Valley's largest companies could count on one constant, and that 0:17:44.560 --> 0:17:47.280 is a rising share price. But now with shares of 0:17:47.320 --> 0:17:50.000 the biggest tech companies dropping at least eleven percent in 0:17:50.080 --> 0:17:53.720 recent months, in some cases, more employees are now unsure 0:17:54.080 --> 0:17:56.600 about their fortunes and it's increasing the odds of a 0:17:56.680 --> 0:17:59.480 rush to the exits. I want to bring in Bloomberg's 0:17:59.520 --> 0:18:02.560 current why ner, who covers Meta Twitter and other companies 0:18:02.680 --> 0:18:07.080 for US, Kurt, how exactly are they share prices impacting 0:18:07.119 --> 0:18:09.639 employee retention. I mean, obviously it was going up for 0:18:09.880 --> 0:18:12.520 so long, and this is kind of a massive jolt, 0:18:13.640 --> 0:18:15.600 it is, right. I mean, if this has been your 0:18:15.960 --> 0:18:19.280 norm for years, that you would get stock every year 0:18:19.400 --> 0:18:21.119 with part of your salary, and if you use a 0:18:21.280 --> 0:18:24.359 few years later, it would be, you know, worth more 0:18:24.400 --> 0:18:26.399 than it was when you got it. UM. Suddenly, when 0:18:26.440 --> 0:18:28.640 you are going the opposite direction, that catches some people 0:18:28.720 --> 0:18:32.119 by surprise. I think if the entire tech industry is 0:18:32.160 --> 0:18:35.520 kind of moving downward together, it probably helps retention somewhat 0:18:35.520 --> 0:18:37.920 because you don't necessarily you know, you're not going to 0:18:38.119 --> 0:18:41.159 your going to another company where the stock is diving. 0:18:41.520 --> 0:18:45.200 But in general, obviously companies want this UM this number 0:18:45.240 --> 0:18:47.159 to be going up because employees want to stay in 0:18:47.160 --> 0:18:49.080 work at a place where their paychecks are getting bigger 0:18:49.119 --> 0:18:51.680 every other quarter. So UM, I think it's really it's 0:18:51.760 --> 0:18:53.439 just the reality of the fact that the tech instrure 0:18:53.520 --> 0:18:55.320 right now is hurting and we haven't really seen that 0:18:55.480 --> 0:18:58.400 happen for a really long time. So are you hearing 0:18:58.440 --> 0:19:01.879 from employees who think it's just not necessarily worth it 0:19:01.920 --> 0:19:05.159 anymore to keep working at you know, a Facebook or 0:19:05.880 --> 0:19:08.680 an Amazon because the stock just isn't worth what it 0:19:08.800 --> 0:19:11.159 used to be, or do they still believe in the 0:19:11.280 --> 0:19:14.720 mission and want to push forward. I think that there's 0:19:14.840 --> 0:19:18.040 just so many opportunities out there that unless you are 0:19:18.119 --> 0:19:21.480 one of these big companies and offering a really attractive 0:19:21.520 --> 0:19:24.760 financial package to people, there's other things they can go 0:19:24.880 --> 0:19:29.439 do to make um, you know, a livable, great tech wage. Right, 0:19:29.560 --> 0:19:32.440 And so I think, whereas before this idea that hey, 0:19:32.720 --> 0:19:35.920 I'm getting in in Amazon today because I know four 0:19:35.960 --> 0:19:38.160 years from now, when all my stuff vests, it's it's 0:19:38.200 --> 0:19:40.200 really going to be worth twice as much, right, That 0:19:40.359 --> 0:19:41.880 was a mindset that I think a lot of people 0:19:41.960 --> 0:19:44.240 had and one of the not the only, but certainly 0:19:44.320 --> 0:19:46.920 one of the driving factors for why these companies are 0:19:47.040 --> 0:19:50.119 so popular with recruiting. Now, if you don't necessarily have 0:19:50.320 --> 0:19:52.480 that belief, right, if you think, hey, a lot of 0:19:52.560 --> 0:19:54.440 what I'm gonna get today might be worth the same 0:19:54.600 --> 0:19:56.920 or or maybe even less in the future, well there's 0:19:56.920 --> 0:19:59.200 just not as much incentive. And so maybe people go 0:20:00.000 --> 0:20:01.800 build a startup on their own, right, or maybe they 0:20:01.880 --> 0:20:03.600 take a chance on something that's a little bit less 0:20:03.640 --> 0:20:06.639 established because they don't necessarily feel like they're they're definitely 0:20:06.680 --> 0:20:09.320 going to get the return that they were used to expecting. 0:20:09.920 --> 0:20:11.920 And these companies have been dealing with a whole host 0:20:12.040 --> 0:20:16.520 of issues over the last several years, privacy, anti trust increasing, 0:20:16.880 --> 0:20:18.840 you know, in the case of Metah for example, really 0:20:19.400 --> 0:20:22.400 um deep seated brand issues. But in the last two weeks, 0:20:22.440 --> 0:20:24.119 I wonder how much of that has changed with the 0:20:24.160 --> 0:20:26.880 war in Ukraine and the uncertainty, how does that play 0:20:26.960 --> 0:20:30.080 into choices. I mean, certainly we've been seeing people resign 0:20:30.119 --> 0:20:32.680 and reshuffle across the board, but I wonder do we 0:20:32.720 --> 0:20:35.560 see a pause now? Well? I think this is one 0:20:35.600 --> 0:20:37.840 of the challenges as these companies get really big, is 0:20:37.880 --> 0:20:41.240 how do you continue to attract people that really believe 0:20:41.280 --> 0:20:43.360 in your mission? Right? And what is your mission now? 0:20:44.359 --> 0:20:47.200 Ten years ago, Emily, you probably remember working at Facebook 0:20:47.400 --> 0:20:49.919 was like, hey, we're changing the world, right, We're we're 0:20:50.000 --> 0:20:52.959 connecting people in a way that didn't exist today. Um, 0:20:53.080 --> 0:20:55.280 And now you work at Facebook and it's just PR 0:20:55.800 --> 0:20:59.280 headache after PR headache, right, And so I think finding 0:20:59.359 --> 0:21:03.639 people who maybe believe in those missions of the Amazon's, 0:21:03.640 --> 0:21:06.520 Google's facebooks, these really big companies with tens of thousands 0:21:06.560 --> 0:21:08.920 of employees. I just think it's a harder sell. And 0:21:09.119 --> 0:21:11.960 so as a result, you know, when something like Ukraine 0:21:12.040 --> 0:21:15.000 is going on, just something that's a real world issue. Um, 0:21:15.080 --> 0:21:16.520 I think it puts a lot of that other stuff 0:21:16.560 --> 0:21:19.040 into perspective from people who might not have been as 0:21:19.080 --> 0:21:22.720 bought into that mission to begin with. Alright, Kurt Wagner 0:21:22.960 --> 0:21:25.400 for this, I I'm sorry. I'm sure this story will 0:21:25.400 --> 0:21:29.160 continue to evolve, Kurt. Thank you. Meantime, the massive list 0:21:29.200 --> 0:21:31.679 of companies halting business with Russia keeps growing as they 0:21:31.760 --> 0:21:34.160 take a stand against the war in Ukraine. This as 0:21:34.240 --> 0:21:38.520 US docks plunge, inflation rises, and rising gas prices with 0:21:38.560 --> 0:21:42.119 a possible ban on Russian oil loom joining US now 0:21:42.240 --> 0:21:44.719 cole CEO Michelle Goss. Michelle, great to have you with us. 0:21:44.760 --> 0:21:46.720 I know it's your investor day and you have to 0:21:46.800 --> 0:21:49.719 be thinking about the macro economic picture here. What are 0:21:49.720 --> 0:21:53.120 you bracing for in terms of how this global tumult 0:21:53.560 --> 0:21:57.680 could impact consumer behavior? Yeah, Emily, Well, it's a it's 0:21:57.720 --> 0:22:00.600 a great question. It's a great point. I mean, we 0:22:00.720 --> 0:22:03.920 are navigating unprecedented times, just like we have the last 0:22:04.000 --> 0:22:06.920 couple of years. And there's a lot of uncertainty and 0:22:07.000 --> 0:22:10.840 concern out there for sure, I'd say from a coal standpoint, 0:22:11.320 --> 0:22:14.480 you know, we're staying very close to the customer. UM. 0:22:14.720 --> 0:22:18.040 We've demonstrated we can be agile and resilient during this time, 0:22:18.200 --> 0:22:21.000 the global pandemic, supply chain issues and like over the 0:22:21.119 --> 0:22:24.360 last couple of years. And today is our investor day 0:22:24.600 --> 0:22:27.119 and we got to share some really exciting news. I mean, 0:22:27.240 --> 0:22:30.840 as we look ahead, we have great confidence in our business, 0:22:31.080 --> 0:22:33.119 lots of growth drivers. I'm sure we'll talk about that, 0:22:33.200 --> 0:22:37.080 but we're also present to the fact that there is pressure. UM. 0:22:37.320 --> 0:22:40.399 We have reflected that in our guidance to investors. UM 0:22:40.520 --> 0:22:44.480 we've taken note in our margin headwinds that it relates 0:22:44.520 --> 0:22:47.000 to things like freight and cost. In the same time, 0:22:47.320 --> 0:22:50.320 from a customer standpoint, we want to be really sensitive 0:22:50.720 --> 0:22:52.919 to the pricing pressures. I think one of the real 0:22:52.960 --> 0:22:56.200 advantages we have here at Cold is our brand portfolio. 0:22:56.359 --> 0:23:01.440 And we have aspirational, iconic national brands like Nike and Levies, 0:23:01.800 --> 0:23:05.080 and we've got great entry price point brands that are 0:23:05.119 --> 0:23:09.000 private label, so we can meet the customer wherever they are. 0:23:09.640 --> 0:23:12.160 And like I said, we'll be agile and responsive. It's 0:23:12.160 --> 0:23:14.120 probably also worth mentioning one of the things we announced 0:23:14.160 --> 0:23:17.280