>> from the heart of where innovation, money, and power collide in silicon valley and beyond, this is bloomberg technology with caroline hyde and ed ludlow. ♪ caroline: live from new york and san francisco, this is bloomberg technology. telegram ceo pavel durov is detained in france on a child protection failures. ed: spacex to the rescue. elon musk's company will bring two stranded astronauts home from the iss after boeing's cap copa holdings. caroline: and the apple event is set for september 10. we will discuss.

let's check in on the mood music that sam a little bit when it comes to risk assets. basically wiping out all of last week's gains. more broadly we are seeing the benchmarks down in terms of s&p and technology stocks. money moving into small caps, worry about geopolitical tensions, trying to digest what we saw last week from jay powell. ed: some of that pressure coming from nvidia, obsession lows, but it's a week where earnings after are the single biggest market catalyst. the reason i say that, on several occasions in recent weeks, nvidia have been responsible for a percentage point move in either direction on the s&p 500 on its own. it is a big week when this name is front and center. caroline: all eyes on a macro event, nvidia. let's get to it, breaking down

the pushes and pulls in the market right now. we are trying to digest jay powell and where rates go, but how important is nvidia to keep tech stocks near record highs? >> this has been the story all year, the past two years. everyone is watching this earnings report coming out. a lot of people are saying it is the event. this is a more quiet week because people are on vacation, liquidity is a bit lower than typical, as we look ahead to the u.s. holiday next week. you have this earnings report that would be important any other week but this week it is taking extra significance. as ed mentioned, the stock does tend to move things around quite a bit especially as we are watching the big tech firms that have led the rally all year long. ed: you touched on something important for the technology sector there, the ego do you

know, fed side of the equation is kind of gone now. let's recap what happened in jackson hole, how markets have reacted since. >> this is the other important story of the year, where everyone has been looking ahead to rate cuts from the federal reserve. you had powell coming out, basically signaling that rate cuts are coming. the employment report is something that everyone has been watching month over month. revisions coming in a couple days ago that were more surprising. expecting the federal reserve to cut, powell signaling, is something that everyone is talking about, watching when it come to the market. caroline: while there is frustration from analysts because they couldn't go away this week because of nvidia, many are pleased in the crypto space. bitcoin coming off of its highs, but how much does the dovish

nature of things mean for the rally in crypto to be sustained? vildana: there has been a bit of uncoupling over the past couple months but it is coming back recently. you can talk it back to the risk on environment in the stock market. it was the story for years, basically, especially in the pandemic. if you had tech and stocks, cryptocurrency was rallying. bitcoin is the largest, sort of the leader when you look at who is doing better in that space. but you can once again see some of that correlation coming back, where if stocks are rallying, bitcoin is rallying. we have been talking about the broadening out of the stock market. you see that a bit. more stocks in the s&p 500 hitting 52 week highs, some of the small-cap etf's seeing inflows over the last week or so. for some people it makes sense

to also be seeing cryptocurrencies rallying once again. ed: vildana harwich, thank you for being here. sylvia jablonski is the ceo and cio at defiance etfs, joins us now. this morning is interesting, like a reset. particularly in the technology corners of the market stabilized a little bit, we knew where we stood after jackson hole. now i feel like we are anxious about a certain company's earnings report aftermarket wednesday. sylvia: good morning, great to be here. exactly like you said, some trepidation about nvidia earnings after wednesday. until we get past that next hurdle, we will see uncertainty in the tech names. this morning, we came in, indices were for the most part in the green, and then we see some of the tech names trying to predict what will happen on wednesday. in the grand scheme of things,

it probably doesn't matter. we will see short-term volatility, and then whatever it is, i am bullish on the ai, crypto rally, tech and innovation long-term. i think it is par for the course. just getting past the earnings and seeing what the reaction is. ed: some specific asset classes in certain sectors we want to get to. but i want to recap friday and the federal reserve. do you have a clear understanding of the path forward for rates in this country, globally as well known? sylvia: i don't think anybody has a perfectly clear view on what the fed does. there are a lot of factors that can change the course of policy. if data softens too much, perhaps he goes faster. if inflation goes the other way, perhaps that gets tamed down on the cuts. but i think we got what we

needed. the fed started to say it's appropriate to start cutting rates, and that is what he will do. whether it is 25 basis points, which is perfect for the market, feeling like we are in that soft landing scenario. a bigger cut may instill some fear around things like job numbers. the market got what they wanted from the fed. we are going to take the foot off the gas pedal a little bit on rates. caroline: going back to the term "fear," it felt like there was some in august, a realization that maybe the market capitalization, not sustainable in the short term. a lot of your etf's are leverage bets on single stocks, particularly around the ai area. one is consumer, retail, institutional appetite right now? sylvia: incredibly high. if you look at one of our more popular launches, the two times

microstrategy etf, for example, trading millions of shares a day. investors continue to have a high appetite for both cryptocurrency and ai. we are very much seeing that in the flows. if you look at abgx, super micro computer, 2x microstrategy, the volume is good. that tells me investors have high conviction on those sectors, ai names, continue to trade them. if nvidia has positive earnings, that could move broadcom, super micro computer. if you look at microstrategy historically, it has been 6x crypto in terms of performance. when crypto is up 12%, this could be 12% -- 6%, this could be 12%. caroline: you use the perfect word, treating it.

are all people treating these? these are not long-term investors in a 2x strategy, broadcom. sylvia: when you look at the leveraged etf space, all types of people treating them. high-frequency traders, institution, retail. when you look at the data, it's only been the case that the holding period has been a day or two on average. most people are taking active views on this and treating every day. that may not mean that they sell every day, but at the end of the day, they are making the decision if they want to be long for another day. the holding period is up to the user in terms of what they view the trend to be, underlying volatility to be. ed: let's and on the story behind bitcoin. i always put my terminal chart, look at what happened

between march and now. basically trading like a u.s. asset, and i don't see the bigger picture anymore that all the guests were talking about over the last four years. sylvia: the bigger picture there is still the things that have happened very recently with bitcoin. you have this huge group of people that believe digital currency is the future of currency, nonregulated in terms of government-backed currency, a digital asset that trades on a blockchain. people like that. and then you have etf's coming out on this product, increasing demand, because the average person can get exposure to that. in terms of the microstrategy, you have an ai company, a huge part of their balance sheet is invested in digital currency, believes it is the future of perhaps business transaction, blockchain technology, things like this.

you still have a lot of investor looking for that disruptive innovative technology. bitcoin continues to be the best proxy for that in the currency space. caroline: great to get you back on the show, sylvia jablonski, defiance etfs. coming up, we will look at the impact of telegram's ceo detention in france. that is next on bloomberg technology. ♪

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caroline: over the weekend, pavel durov, the ceo of telegram, was detained in france, failing to take steps to prevent telegram's social media platforms. since then, a blockchain product had lost $2.7 billion in its own market value. it all reflects the uncertainty of the tension of the cofounder. joining us now is alan katz. pretty sensational stuff. he steps off of a private jet and is whisked away? >> it is very surprising actually. france, like other countries, have been in a point with social media companies over this issue of content moderation wish to be at the core of what they are going after durov four.

the idea of grabbing the ceo and throwing him in jail is really a surprising raising of the stakes of all this. it was quite dramatic. no one was particularly expecting it. it has been quite an exciting weekend. one of the questions becomes, when do they actually go forward on this? durov has been in jail since saturday evening. normally, the initial initial period for detention like this would be 24 hours. they renewed it sunday evening. that renewal which is usually 24 hours, can be longer, depending on the crime they are looking into, including organized crime, even longer if it is terrorism. he is being held under this organized crime grouping. it doesn't mean organized crime in terms of mafia, but are you

doing something in a network, group affect. it does mean that he can be held without being charged for another couple of days. it is a long time if you go from saturday to wednesday evening, when they have to decide to charge him, keep him as a material witness. ed: the reaction is playing out in crypto assets linked to telegram. french president macron also took to media in the last couple of hours to point out this was not a political decision. what are the basic accusations, what are the failings that the telegram ceo is being accused of? alan: it is sort of a hard concept perhaps, particularly for american viewers. the basic feeling is for lack of content moderation by the platform. fundamentally, the accusation is, there is lots of bad stuff

happening over the telegram platform. some of that stuff includes potentially child sexual assault materials, could include drug dealing, all sorts of bad things happening on the telegram platform, and that the company, durov as the ceo, had deliberately turned a blind eye or failed to rain any of that in. it is not necessarily any actual actions that durov or telegram took, in fact it is the opposite, the lack of action they have taken particularly to reign in child sexual abuse materials. caroline: in a statement released on the platform on sunday, they said that durov has nothing to hide and that telegram abides by european

laws. alan katz, we appreciate you breaking debt down for us. you reference it moments ago, ed, we focus on the flow of money. we can ultimately see the read across to crypto related to telegram. first fostered by telegram, all about using the money around the social media platform. toncoin has lost about $2.7 billion. ed: in other news, shares of paytm dropped after india asked it for more information relating to its ipo. the stock fell 8.9% after the securities and board exchange of india issued a show cause notice to the founder and some of the board members. the regulator looking into whether paytm misrepresented facts during the process.

disappointing revenue and warned of declining growth, highlighting the challenges of sustaining its pace of expansion. the chinese commerce platform reported revenue of 97.1 billion you want, $13.6 billion for the june quarter. ibm is shutting down a key research division in china in a move affecting more than 1000 employees. local media reported. the company shuttering two business lines that specializing in research and development and testing, instead toward serving private enterprise and select multinationals operating in china as they go forward in that market. caroline: we will turn our attention to spacex's first commercial space walk mission. that is coming up next on bloomberg technology. ♪

ed: let's talk about space x. the company plans to launch a mission aimed at performing the first commercial space walk, sending four private action outs that's astronauts including a billionaire into high orbit around earth for a mission dubbed "polaris dawn." joining us now is lori beth garver from bessemer venture partners. we are talking about opening a capsule that needs to have its pressure adjusted. you know the history of what the agency did. what about what spacex plans to do tomorrow morning? lori: this is a very exciting mission, whether a government nasa mission or what it is, which is space x and the private

entrepreneur jared isaacman paying for this. it does not involve our tax dollars. the other three individuals going with jared are space x employees, so it's a really exciting mission. it is stretching the envelope, pushing out the barriers to what i know jerrod is driving toward, which is a space-bearing civilization. you need to take new risks. that is what they are planning to do here. caroline: how radiation impacts humans, starlink at these altitudes. where does it push us forward to? what does it mean also for nasa working alongside these experimental, high risk projects? lori: one of the reasons space x has been so successful, they have taken things step-by-step. at nasa, when i was there, we

allow them to carry cargo for us to the international space station, after developing the rocket with their own funds. we got confidence with that and then allow them to take astronauts. now they are taking astronauts beyond to a much higher orbit, and as you noted, going on the first commercial space walk. we come in the government, will learn from these activities. they have developed a new spacesuit. nasa developed a lot of -- spent a lot of money developing the spacesuits. if it is successful, nasa will be not far behind in trying to embrace this, being able to utilize space x ultimately for even more activities. they have proposed servicing hubble. this mission is planned, jared has said, as a precursor to boosting the hubble telescope,

where we can use it longer scientifically. nasa has not opened that door. if this succeeds, we could see space x back trying to make that happen. ed: we got conversation -- confirmation over the weekend that it is space x to the rescue. the two astronauts will return in a dragon capsule because of the issues with boeing and their capsule. how do you react to that, how does nasa react to that long-term? lori: it is surprising that the boeing starliner program has had so many problems when they were awarded both -- boeing and space x -- they got a lot more money. it has taken them four more years and now not successful. that said, the point of competition is to drive and make things better. we successfully have space x and dragon being able to do this. part of this story is not really

that the astronauts are stranded, but we have this option with the dragon to bring them down. we also have the russian soyuz program where nasa was more than happy to use 10 years ago. it is a setback for nasa, but it reinforces the value of what nasa's plan has been, and frankly, all props to space x. caroline: great to have you on the show. former nasa deputy advisor. coming up, we will be speaking to brian ruder, permira partner on the latest trends. we are taking a private equity and venture spotlight to this. this is bloomberg technology. ♪ hey folks, chris counahan here with leaffilter,

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>> welcome back to technology. caroline: a quick check we have a bit of caution with rick assets today. the nasdaq is up .8 off the lows but maybe we are drawing breath after rally last week after powell and jackson local and promise of rate cuts and geopolitical attention having prices in. bitcoin up by 1.3% but we rallied at that over the weekend. we will look at individual movers. all eyes on nvidia down on the day that is why the bench marks are lower but earnings what does it signal in terms of commitment to that?

the u.s. traded depository receipts as revenue grew more than 80% but down from what we are used to and seeing the owner of teemu we will see a slowing and uber got a fine for transferring data from europe. let's dig into the broader contexts. ed: our next guest is the partner of a global investment firm with $89 billion under management. the most notable technique transactions are vendex. mccaffrey fee and others. effective september 1 they will be the co-managing partner and co-c.e.o. and he is dubbed the technique expert. he is with me in san francisco. this is a large firm with some history and this is probably one

of the more significant changes in structural layer the firm has gone through. start with what you plan to do differently and what the approach to technique will be when you take charge september 1. >> i'm honored to take the position and chair that with my colleague and friend taking over from my friend. it is one of a series of multiple tractions we have been through in business. it is a happy adds continuous transition. kurt is remaining as executive chair so he is not going anywhere and we are looking forward to continue the strategy and bring a bit more technology bent but doesn't main we will change the strategy to be only tech. we think some of the most exciting areas are not just very strong technique but healthcare

and services. ed: we listed at the top some of the transactions that the philadelphia has been involved in and have taken place. move that forward. what kind of sectors, subsecretariesors, specific corners of the technology world would you pay attention to? >> we think software will continue to be a really exciting area to invest. it is the largest area we have been investing the last several funds with the buyout strategy and minority premier growth which is more focused on minority faster growth. that is driving mostly arson the cloud transition and increasingly ai which is still a 30-year plus transition in mid cycle. so there's a lot of cloud transition driving quite a bit of growth. ai is a more interesting driver in that segment, too.

some of the more investing areas to invest outside of star more in the service portfolio where you are automating business processes and competing with businesses with not quit the same digital software backbone. caroline: dictate when you are looking to take pry you are talking about square space, what secret sauce do you want to ingenetic or growth do you stimulate when you have taken a company private if >> i cannot speak to them but there's usually a core great product capability. we invest in product led growth. we are typically investing in the market creator but there's usually something we can tune with them in collaboration with

the management teams to help improve the operation whether pricing and packaging, sales force organization, how they are doing their own product investigating but philosophically we are a unique investor we are tending to back tend growth and expansion of growth rather than what most of private equity does which is help companies find their packs memorandum ebitda. we would look to help them get their maximum growth rate. >> you have some product experts that come on as advisors. we knew one with facebook and with disney. you have simon back in the u.k. that speaks to a global nature you have. how are you looking at global opportunities like u.s. investing and what it is in europe or asia? >> the u.s. is that is the

largest. europe is our original market and very significant to invest in. i would say we have a wonderful set of senior advisors around the world. you mentioned carolyn and simon from arm a fellow brit having right hand that but we have other people in product and technology. europe has been a interesting market for technology. we have been positively surprised not with europe so much as under markets but innovation hub businesses like next think are businesses that are global leaders but headquartered in europe so the entrepreneurial talent and engineering talent we are able to find has been a big positive up side in those countries. ed: you have been with the firm since 2008 and you are based in men -- menlo mark.

you talked about the willingness to back revenue growth. how have things shifted since the early 2008 and what technology companies pilot want from you relative to with you want from them. >> i started in the mid 1990's and at that time private equity was purely a financial investor. you bought single digit. ed: get a good management team. >> yes. but you would say the business you would invest in were ones not very interesting to a strategic buyer. the industry is now a strategic investor is aware investing around themes and theses and points of view where markets are going. we are frequently the higher pair because we see more value in operational and long-term strategic potential of a business so there's very few companies that cannot be

targeted by some form of equity capital whether early stages or growth equity and large scale buyouts. caroline: great to have time with you. many come back on the show. we appreciate the time. we have breaking news regarding the c.e.o. of telegram detained in france. we understand that will last until august 28 so we are seeing at the moment there's from the prosecutor that the telegram c.e.o. might last until august 28. we understand a major straight will extended in from 24 to 96 hours. he stepped off his jet friday to be held. we have plenty to discuss while we see the impact of the telegram c.e.o. and we want to talk about crypto more broadly.

crypto has had a nice weekend and we can be happy about that. >> out bitcoin bridge 65,000. you swaoebgness monday but now around 53,000 and if you look at the price over the last seven days bitcoin up 8%. others are up. so in the crypto universe most to your point some don't see the same love. you also have the narrative back under the surface and causing issues with the e.t.f. we saw softness there the better part of the summer and now you are going into the election

so about how friendly oren friendly different administrations would be but the part of it is not just the place to hide you are seeing golden and bitcoin the last 24 hours but you have the idea if you are worried about fiscal spending maybe bitcoin is a good place to be. i speck more staff narrative happening into november. ed: fiscal spending and bitcoin in the seam sentence. you -- same sentence. he follows the show and what are at the doing? >> although they are coming back i have to say they are not coming back as robust as you would have had we the first set of flows entered into the bitcoin e.t.f.'s at the starter of the year in january we they were first approved. yet still you did have the highest in more than a month,

252 million net inflow into a group of a dozen spot bitcoins after the powerful pivot let's call it. but interestingly enough even though you have that kind of inflow into the spot e.t.f., i would say importantly you have bloomberg intelligence writing about some e.t.f. not age to get -- not able to get the same kind of approval from the f.t.c. you can call it a positive for bitcoin now support regarded as safe, but when you think of the path forward for other tokens that pilot seek the same treatment there's a lot of caution and uncertainty on how fast you might see that sort of thing. ed: thank you very much. coming up in the show,

magnetar's first ever venture fund. ♪ ♪

ed: this is a live shot of the bloomberg technology room where we have the podcast. this is bloomberg. caroline: met net tar a $70.5 billion credit but it is pushing to venture capital with a focus on javier ai technology. -- on a.i. technology. you have already backed some well known names in this space.

why go more flaccoed with a fund more than $200 million. >> i think because of our experience in ai m.l. investing back to 2021 with two of them and cohere and we have the expertise in the space and just the time and unique opportunity with all the capital going in. finally, it is because we have a really unique product offering both the support of magnetar and dedicated compute on the cluster that provides unique value to the potential portfolio companies. >> it is providing them with compute and zhang for equity. how does it work and how do you determine how much compute is worth how much equity? >> it dedicates g.p.u.' for this

and potential portfolio companies will get access to the compute in exchange for equity. so it would be a negotiated process on the value. but the important thing is that it solves a lot of problems for the company leak often there is this chicken andesque situation where it is hard to contract compute if you don't have capital and vice versa so potentially we are solving that by providing a directs exchange of the equity for compute for what we believe is the top performing high performance compute cluster. >> how are evaluations looking? is there a concern with the spine in space they are overvalued or equities might be expensive? >> it is hard to generalize. part of it is folk on companies that have both internally the

right management team, right technology, right mode but in the right part of the ai stack, whether that is applications or verticals where it is hard to separate the pieces so we can be confident they are creating value. ed: i know a lot of firms that want to hold both private and public equities and try to work out the best vehicle. yet by the mutual funds increasingly up the cap table, why do venture vehicles what is the benefit of launching a dedicated funds? >> it is the unique instructor. the fund is specifically offering compute in exchange for equities. in the other funds we historically indevelopsed across the cap structure in public equities, private equities, structured debt. but here because of the unique

value proposition and way we have contracted the cluster it makes sense to offer it as a dedicated fund. caroline: it is so fascinating this is how a.w.s. got in a lot of strategic investments, microsoft what. is the relationship with core weave to ascertain and make sure you question that. are at the happy to get more demand coming from you? >> we have been close partners with core weave providing capital and magnetar resources so this was the next step in the evolution of the relationship we felt between us we were in a position to offer this product and could work with them on contracting and compute and arrange the fund such that we can deliver that compute in exchange for equity.

caroline: compute in hot demand but give us some con technique. it a company is doing a funing round how much of that could be spent on compute? >> it depends how much the compute needs are. if it is application developing firm maybe on the order of 25% of a cap raise might go to compute if you are developing a sick -- particular application. but it is it is a company developing large models up to 75% or more of the cap rate could be to high performance compute. ed: great to have you on bloomberg technology. coming up, apple's biggest product want is september 10. what to expect from them next in that exclusive report. this is bloomberg technology.

ed: market calendar september 10 apple plans to hold the biggest product event of the year. according to source it is will have the latest i phones, watches and airpods. it probably is the biggest and to focus on the new generation i

phone? >> this is their biggest hardware launch. it is where you saw the unveiling of sequoia and other things. now we will see some new devices the operating systems are geared toward. the big entree will be the line of new e phone 16's -- i phone 16's. they are not manual overhauls over the year prior but guys enhancements like a new camera button on the side of phone, new processor for better ai handling and slightly larger screens on the pro products. no airpods a replacement to the low end airpods, they have not been updated in five years and mid tier airpods trying to go after more of the head phone

market. right now they compete well at the pro price point but going downextreme and if you watches will be significant. caroline: one thing significant is your is ongoing reporting of how we will see the lock step of operating system being able to be upgraded and ai provisions aligned with september 20. how is that looking at the moment? >> these new will have ios 18.0. then they will include apple intelligence. based on everything i have been seeing in testing so far the apple intelligence features in 18.01 are quite limited. you get summaries of incoming conversations but you are missing other tweaks like the gen emoji and where being create

your own images. but it is a pretty limited set of features. ed: you got some clues on the store timing and we the next-gen rolls out on shelves if >> shelf release should be around september 20 for the new i phones so about 10 days after the announcement and they are typical. it is usually the first week or so after labor day then they go on sell about a week and change after. caroline: thank you so much for that. from anle -- from anle that is it for us. ed: check out the podcast. from the team here, lindsay, jackie, carroll, brace yourselves for a big week. this is bloomberg technology.

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♪ >> welcome to bloomberg etf iq. scarlet fu is off today see you are stuck with me and eric. look into the biggest stories right now. more than $13 trillion global etf industry as chair powell pickets, saying that the time has come to adjust policy traders, gearing up for rate cuts and inflation data lives and at the etf market become attractive to more big names, bill ackman maybe could be the next one to launch a pershing square fund. we will discuss. and his return staffing booms and popularity, we discussed that strategy with newfound research. but as alwa