tensions. we could talk about it any moment. i think that is why you are seeing the volatility in the market in the mixed reaction because it is not know how to price in this uncertainty. caroline: a wildcard meant a wild day in trading because we have been going from the gains and losses as the s&p 500 -- >> this is the third straight decline for the s&p 500 and the fifth drop in six days. you're perhaps looking at a lot of concern as the chief chinese negotiator goes to washington and they really start to tackle some of these long-standing issues. caroline: we have finally found some of the areas of strength. lyft getting crushed today. joe: lyft getting clobbered, beyond meet getting clobbered. gettinglly small caps

clobbered. snp, 600. small caps, much lower. >> we are not even done with earnings season. results from disney are expected to be out. still with us, anthony from ameriprise financial and gina martin adams from bloomberg intelligence. the bullomponent of market is at least under question now ever since sunday evening, but what do you do? anthony: i think gina brought up an excellent point. you can boil down the tariffs to a simple equation. if we put more tariffs on chinese imports and china retaliates, it means global growth is slowing. if grover growth -- if global growth is slowing, it means

global earnings are growing. stock prices move down. i think that is the reaction you are seeing in the market, really trying to square, are we going friday, and ifon we do, would that eventually put the trade deadlines to rest, or when we go for that 325 and potentially slow the economy for earnings? caroline: where'd does the money go? does it become cash on the sidelines? it often -- the u.s. often benefits when it is the cleanest shirt in a dirty pile. do you go into corporate bonds far more? gina: i think a lot of it depends on how fast the declines become. flightflight to quality, to treasury as sort of your

first line defense. ultimately, investors, if you to see deceleration, you probably continue to see more forced selling, see the thing start to snowball more. we are talking in major theoretical terms. nonetheless, what you tend to falling in an environment of risk off. but all time -- all stocks tend to fall. it is a bit conspicuous that gold is not performing a little bit better so far. you would think, if things were really starting to deteriorate, you would see a bit of a gold play. spotty whichretty is consistent with a period of what i like to call defrosting in the equity market.

so far it is more of a consolidation phase we appear to be entering. we've been advising clients to stick to their strategic clients right now. if you were sitting in december and felt like you didn't have a chance to adjust your portfolios back to quality companies and the types of allocations you are comfortable with, you have that chance now. those are not close to strategic targets, i would look at those companies, meaning companies with strong balance sheets. i would keep my target allocation close to the risk level that i'm comfortable bearing in an upmarket and a down market. did staysector that green was health care. that was up until a couple of

weeks ago. is it just about -- it is a classic -- classically defensive sector, plus maybe some of the concerns? gina: i think another thing we are missing is earnings season. >> disney has just reported earnings, beating the consensus estimate. analysts were looking on average for about $14.5 billion. the median network's revenue missing the mark here. $5.92ts were looking for billion. we knew some of the numbers would come in a little bit weaker especially on the profitability side. caroline: nevertheless, profitability is on the back burner and they go. ahead when it comes to disney

plus and the like. thatems to be a bet investors like. joe: so much enthusiasm about this company. not just obviously the streaming platform, but the suite of blockbusters. lots of feeling among investors that it is a future story. caroline: interesting on streaming roku coming out. it is a beat for roku. scarlet: let's bring in paul sweeney. he knows this company well. of course he's a cohost of bloomberg markets radio. paul, we knew that profit would be in decline from the same time a year ago given the investments in streaming. we have to look ahead to what the company says. here the real big figure -- big thing here is about the

pivot. now they're going direct to consumer with espn plus and disney plus. these are the netflix-like products that disney is going to develop over the next couple of years. this is a big pivot for the company. most people feel like the investment over a number of years will be billions of dollars. the company does not believe businesse streaming will be profitable for a number of years. the question, what will be the peak year in terms of investment and losses for the streaming business? joe: paul, what you say in terms of lots of investment coming up is obviously something investors seem to have digested. his disney in a period in which it sort of doesn't need to worry about it as much. the investors have accepted that there are some big stories a few years out, it will cost a lot of money, and in the meantime, it is not the end of the world if they spend a lot of money.

i think investors -- the , apples., amazons they have to make this pivot. if you are a disney shareholder today, you know full well what this means. if the company is able to do it successfully, then you feel pretty good because the content is absolutely spectacular. considering they bought 20th century fox. caroline: it is interesting that disney has rallied 22% this year. how much do you think the stock and continue to define the losses in the sector? what keeps people wanting to keep betting on future growth? last month, in april, they had an investor meeting.

investors really liked what they heard, which is that it is going to be a relatively low-priced service, a price below netflix, and they are making an all-out commitment from a content perspective. if you were an investor, i think the stock really rallied on that. i think people feel really good about the trajectory of that business. the parks and resorts business continues to be a tremendous , theirs, and of course theatrical business, there's nothing like it in hollywood. $6.17t: revenue of billion in the fiscal second quarter. thank you so much for giving us your instant analysis. caroline: it seems to be quite amazing that there is still enough room for these streaming services. roku is raising profit outlook at the moment. after hours come up 7%. they say in a statement, "we

pioneered streaming on the television." joe: everybody trying to get in. it is pretty remarkable. there's just a bull market, everybody in this space. some finalt's get thoughts from our guests. we are getting more earnings, but of course we are at the tail end of earnings season. what did we learn here that could help propel markets up to new record highs again or will continue to see the air come out like we did it trading? changedcouple of things over the past few weeks that were notable. quarter,art of the quarterly reporting season, analysts were expecting a 4% decline. we are now expecting a 1% gain. unfortunately, a little bit of that optimism is offset by pessimism for the second quarter, which got a little greater. you still have this story of, we

probably continue to experience relative earnings week this for the next couple of quarters before we then dig out. the big question mark is, will we start to see economic data support the notion that earnings growth will improve into the second half of 2020. the other thing that happened over the last couple of weeks is guidance started to improve a little bit. the guides from -- the number of positive guidance from s&p 500 companies outpaced the negative guides. that is actually a decent positive that i think we want to note. caroline: talking about decent positives, let's talk about some other earnings that seemed to be beating expectations. third quarter earnings. the first time we have got it since they sold the entertainment assets. $.76. the overall estimate, $.66. third quarter revenue, $2.75 billion ahead of the estimate. scarlet: disney shares also

gaining in after hours trading as well. our thanks to our guests, gina martin adams and anthony from ameriprise financial. that is it for me. her main bostick will be stepping in for "what'd you miss? -- romaine bostick will be stepping in for "what'd you miss?" this is bloomberg. ♪

♪ romaine: --caroline: live from bloomberg world headquarters in new york. here's a snapshot of how we ended up closing in the red today. joe: the question is, "what'd you miss?"

earning: disney tops estimates even as streaming expenses mount. tohony scaramucci returns host some of the biggest names in business. the former trump aid takes on trade, the market, and his former boss. cryptocurrencies feel the heat after a massive security breach. it is just the latest in a long line. the markets have been see-sawing. president trump has a self-imposed friday deadline for the u.s. and china to reach a deal before additional tariffs on china. the odds of a trade deal may have doomed a bit. jp morgan ceo jamie dimon told bloomberg that a deal is still probably more likely than not. >> whatever the odds were before, i still think is 80% to

get it done. the odds of something bad happening is probably double. that is why the markets are reacting to it. romaine: joining us with a little more insight, we want to welcome the founder of the asset management firm unison advisors. he is also a columnist for bloomberg opinions. you saw the action over the past few days now. what do you make of the possibility that the market is maybe making a little bit too much of the trade issue? >> i'm always reluctant to draw lines between market movements and news. but i've been struck by how the market has reacted to any flareups in the trade disputes. we've had six corrections since the financial crisis. two of them came last year on trade related news. you have the movements from this week, when you had a

flareup and markets took a nosedive. i do think that markets are concerned about the impact of any prolonged trade dispute or a trade war. the only problem for investors is we don't know how this is all going to resolve itself. i think this is a rare case where it is fair to say that if this doesn't go well at the end of the week, markets will not take the news well. everyone hasjoe: their theories of -- let's say in all blows up, that there is no deal. what do you do now? we don't know what is going to happen friday. nir: i don't know if there is a holland you can do, but i think there is one thing that investors should pay attention to, which is what is going to happen -- let's assume that it doesn't go well and that markets selloff. where are the selloffs going to be the greatest? i think there is an assumption in general that global stocks are going to take a hit roughly

equally around the world. i don't know if that is going to be true. that assumption i think comes from the fact that over the last two downturns, you had a global selloff and there was just nowhere to hide. in both of those cases, you had rich valuations around the world. this time is different. the u.s. is, i think, demonstrably more expensive. it is more expensive than the rest of the world. that might mean it has more to lose. if i'm an investor, the one thing i'm thinking about, where are the losses likely to be the heaviest? caroline: also, as people have been worrying about these loss evaluations, omaha still trying to hit that if you have got inflation at this level, interest rates at this level, to a certain extent they look ridiculously cheap in the united states at the moment. when we start to see a risk off tone, we do see money move in to

the united states as the clean assured among a dirty pile for the want of a better expression. that it is theis underlying fundamentals in the u.s. that ultimately determine that, that makes the u.s. market look like a high quality market at the moment. the question is whether that can sustain itself. when i look at the earnings growth that we have had. i know you recently spoke about earnings. the earnings growth we have had in the last 10 years, it just looks unsustainable. it looks like an environment that can last for an extended period of time. had earnings growth of roughly 2% a year. it has been roughly double that in the past 10 years. i don't think that is something that is sustainable. it is possible that the lowflation environment is sustained. japan has had it for going on three decades now.

i'm skeptical of earnings can stay where they are. caroline: always great to get your perspective. we thank you so much. now, let's shift gears a bit. by might know them better their website and platforms home advisor and angie's list. they've just been releasing first-quarter earnings. an exclusive interview with the ceo. thank -- great to have you with us. twot of all, of course the biggest u.s. marketplaces, focusing on connecting homeowners with those who help improve, fix your homes. do you think you are able to take on the competitors wherever they might be, whether it be competition or the amazons of this world? >> we do see offline as our biggest competitor. this is a huge industry, estimated between $400 billion in $800 billion per year in

value. we think we are in the early stages. we are at the vanguard of this movement and we think this will play out over years, perhaps decades. your read on the economy right now, specifically the labor side? a lot of what we see are these two-sided marketplaces. the strong economy creates pressure and competition for labor. we saw strikes from drivers today. what are you seeing among the vendors on your platform in terms of demand, pricing, and their pricing power. we connect homeowners with small businesses. what we have seen is an imbalance of supply and demand, more demand from consumers than we can often meet. small consumers are often very busy.

not as many people are coming into this industry as they used to. there is a labor shortage within home services. it has not obviously impeded our ability to grow but something for us, i think structurally in the united states, that we need to take a look at. anaine: you act as intermediary between consumers and businesses. i saw amazon a couple of years ago moved into this space. with the housekeeping side, they effectively hired their own housekeepers i guess to have a little bit more control over the quality of the service. do you see issues with that, being able to vent the types of businesses on -- being able to vet the type of businesses on your platform? brandon: unfamiliar with what amazon did, a small pilot. we do a lot in terms of vetting. we background check and screen the owner of every business that comes into our provider network.

we obviously still sourced community reviews, content, feedback. i think we do more on this front than has ever happened in the history of the home services industry. they don't need to work for us in order for us to do a good job. we not just hiring gig workers in all cases. we have actual small businesses. some of these businesses have been around for decades. they can work independently while we are still able to vet them dependently. romaine: you guys are still linked with iac, right? brandon: they are a shareholder. caroline: i've just moved from the u.k.. i was using handy. i'm looking at your numbers now. you've seen revenue increase. .1% growth in europe without the foreign-exchange effect, it would have been 20% growth. obviously, a big affect

this quarter. the way we think about it, hopefully it comes and goes. right now it is going against us, but we don't expect it to stay that way forever. we are looking at the core performances of businesses. 20% growth, we are very happy with that. that is a more nascent segment of our business. the project is good. some individual companies are performing very well. we are excited about the future. the opportunity in western europe is about the same size as the opportunity in the u.s.. this is a very large market in aggregate. it is a long-term play, for sure. , angi homen ridenour services ceo. turning back to media earnings, disney and fox have just reported earnings. ar more, we want to bring in media and entertainment analyst. a strong by opinion.

what is your quick take on what you have seen with disney? >> i thought the numbers were pretty good actually. much better than we were expecting. i think the highlight of this theter undoubtedly was newly classified park experience products which saw significant margin expansion. still some very difficult expansions -- difficult comparisons but all in all, i thought these results were pretty good. i think investors are looking beyond these results for the integration of fox and also the consumer offerings that have been highly anticipated. romaine: talk to me about those direct to consumer offerings. we got roku earnings out, which is not really a direct competitor, but it is kind of doing something that disney wants to do itself. where do you see disney doing this?

is there a chance they will pull this off sooner than people expect? i think investors understand that this is a marathon. when you are looking to launch at scale, you saw this quarter directis segment, consumer international had lost about 393 million. those losses are only going to escalate. i think patience is going to be a key word here as they continue to invest in content and marketing and hopefully try to ramp up subscribers. we are encouraged by espn plus which seems to be off to a good start. i think the disney plus offering is also poised to get off to a strong start, especially given the investor presentation from management a few weeks ago. caroline: what is going against the trend is fox focusing on

television. we are seeing fox outperform at the moment in terms of its share price. you are more neutral on the company but what do you think of these earnings and the future of the company? tuna: i think the future of fox looks good in terms of being a pure player within the news and sports arena. fox is scheduled to have an investor presentation tomorrow and we will be listening very closely for a lot more transparency in terms of their strategy, direct consumer offerings, international plans, capital allocation, things of that nature. there is still a lot of unanswered questions on the new fox. we see the company with sufficient financial flexibility and it seems like they will get off to a pretty good start. caroline: great to get your perspective. tuna amobi, cfra analyst. coming up, we speak with anthony scaramucci. his thoughts on the markets. this is bloomberg.

♪

mark: house judiciary committee chairman jerrold nadler says president trump's assertion of executive privilege over special counsel robert mueller's report is a clear escalation of his administration's "clear defiance of congress." made the comments during the committee vote today to hold inorney general william barr contempt of congress. white house press secretary sarah huckabee sanders said the itsident had to assert

because of a blatant abuse of power. to president trump's state tax returns gives democrats a possible enron around the administration's refusal to disclose federal returns. a manhattan democrat is one of the main sponsors. he says republicans were misinformed about the issue, pointing out that current federal law already allows congressional committees to request returns from the internal revenue service. >> no one is above the law. we have a situation in washington where a coequal branch of government has requested tax information from the white house and it is being stonewalled. mark: the vote fell along party lines with 39 democrats in the 63 seat new york state senate

voting for the measure. british foreign secretary jeremy to begin iran's threat higher enrichment of uranium is a threat. the u.s. which unilaterally withdrew from last year to the dismay of its european allies. speaking in london alongside u.s. secretary of state mike pompeo, hunt said, "i urge iran not to take further steps." hunt called the deal a very important achievement of western diplomacy. >> despite all the problems we have in the middle east today, iran does not have nuclear weapons and its neighbors have not responded by getting their own nuclear weapons. secretary pompeo and i are one in agreeing that it would be a major step back for that region if it became nuclear rise. hunt added that britain

was not ready to give up on the deal. as iran ", as long keeps its commitments, so will the united kingdom. interviews secn chair clayton. more tocuss opening investors. requirements on ipos and public companies, and his recession the leveluding about of leveraged loans. >> what i don't like is that companies are not choosing to go public early in their lifecycle. i want our retail investors to get a chance to invest in those companies while they are growing. it is great to invest in a $20 billion company. it is really nice to invest in that $20 billion company when it was $2 billion two years ago. mark: that airs tonight at 9:00

in new york, and throughout the weekend. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm mark crumpton. this is bloomberg. caroline: as mark was discussing, the house judiciary committee has now voted and it is indeed holding attorney general william barr in contempt of congress for failing to comply with a subpoena for robert mueller's unredacted report. 24-16. the contempt resolution ultimately requires the full house of representatives to back it. this is a step they say they are not taking lightly. trump is asserting executive privilege at the moment over the materials subpoenaed. romaine: we want to update you that that disney conference call following their earnings has gotten underway. we will bring you any news out of that as soon as we get it. in the meantime, iraqi week for

the markets as wall street digests the china trade talks. schatzker isrik standing by with a very special guest. i'm here with anthony scaramucci. you know him for his time in the white house but he is the managing partner of skybridge, which is holding the salt conference here in las vegas. the last time we sat in these chairs, it was two years ago, you were still negotiating the , you hadn'tridge entered the white house. a lot has happened since then. anthony: did you catch my opening, you remarks? i have had a very uneventful two years. listen, the last two years, a big learning experience. what i tell people, particular when i speak at colleges, don't let your pride and ego get most of you. i was fighting it out with

reince priebus, stephen bannon, i let my pride and my ego get the better of me. when that happens, your emotions go high and your intelligence go low. it is a cautionary tale for people in their careers, and their professional life, but also the way they invest. the standoff over the mueller report is like nothing washington has seen since the days of the watergate scandal. the congress seems to be exercising a cost to show right of oversight or the administration that wants to assert an expanded interpretation of presidential authority? anthony: it is a very complicated question but i'm going to answer it this way. i think there is a fever in washington right now that is very unhealthy for the entire american system. i think they are both a little wrong, frankly. i think they were very wrong in the beginning. i would have said to you two

years ago that there was no russian collusion during the campaign. the mueller report pretty much said that. i read all 448 pages. i'm writing an op-ed right now for usa today and i'm basically saying, if you know the president, it wasn't his ax -- wasn't his intent to obstruct justice. it was his frustration that he didn't commit a crime that they were investigating him for. in the mueller report, they also draw that conclusion. at the end of the day, in my opinion, attorney general barr is correct in what he said about the report. we politicize and weaponize are agencies and the political process. by the way, if secretary clinton had become president, they would have been investigating her for her emails and the foundation. for me, i think it is an indictment of both parties. if you want to beat the president, he's obviously not going to get impeached.

inside ofi theater washington is not going to have the effect you want it to have. why don't you focus on policy, fixed the administration -- fix the immigration system. i think they are both a little wrong, frankly. american democracy wasn't just built on law. it was built on norms. do we really want a system in which there are no norms, only law, and all the major fights have to go to the supreme court? anthony: i think if you go back fore, that -- v. gore, that election and what many people saw as the politicization of the supreme court, we have ramped up the animosity. i would agree with what you are saying. you want us to go back to some

normal situation. but that means that the fever has to break on both sides. it is not a one-sided fever. i just think republicans are a little offkilter, the democrats are little offkilter. these people are not doing anything, so that is great for the stock market. the president's economic policies have actually worked. at the end of the day, market activity, notwithstanding the tweet storm over the weekend that caused the correction, by and large the market activity has been good since the inauguration. erik: has the -- does the president's approach to dealing with the fed make any sense to you? anthony: again, it is his personality so i'm not here to say that i don't understand what he is doing and why. if you ask about normative standards, since 1913, we have had this standard and protocol that the president wouldn't interfere politically with what

you would like to go back to that? anthony: i would. the president would challenge it as, i've been right, look at the growth, the inflation. they raised rates last year, they slowed down the trump trade enough economic growth. i get all that. i just think it is a dangerous place to go. ace you politicize and create codependency between the federal reserve chairman and the president, you will spook markets. i want american markets to be what they are to the world, which is the operating standard of excellence in the global society. erik: do you think the president will let jay powell serve out his term as fed chairman? anthony: i do. he's a smart guy. the president knows that would be an apocalyptic market disaster. he can jawbone about it, expressed frustration, but he is a very common sense oriented

guy. when you go to what the president is doing, you say, common sense policies. if you go to how he is doing it, you need a trump decoder ring. you need to turn the ring a few times to understand what he is doing. of the three candidates to befriend president now, do you have a preference? anthony: i don't. i have to confess that i don't know them very well. what i do like is that they are inside the bandwidth of academic standing. they are more in the conventional zone then herman cain or stephen moore, who is a great friend of mine at the conference now. i think he would have been great on the fed. i understand why it would have been so hard for that to happen to him. erik: general kelly last night told david rubenstein that jared and ivanka needed to be kept in

line at the white house. did you see that as a problem? anthony: i didn't. i was only there for 11 days or 954,000 seconds. i liked jared and ivanka. the general and i didn't know each other. the ipo of my friendship with john kelly, he didn't trade very well on the ipo but the stock is rising right now in heavy volume. i'm looking forward to having that interview with him today at 6:00 p.m.. erik: what democrat do you think could give president trump for -- a run for his money? anthony: i have to analyze it objectively. i think the person that would give him a challenge would be vice president biden. but i think it will be very tough to beat the president and a rising economy, and i do predict the economy will still be on the rise through november 2020. erik: you recently said some nice things about mayor buddha judge.

you appear to have walk that back a little bit. anthony: we've got the white house shenanigans. here's what happens. washington is on spin cycle. new yorkers are on rinse cycle. i like telling people what i really think. i like the mayor. i think he's a great communicator. i'm a gay marriage proponent. there are family members of mine who are gay. i think they should have life, liberty, and the pursuit of happiness. i think our children are so over this thing, why are we even debating it now? my tweet about the mayor, was i'm very proud of him standing out there as an openly gay person, a combat veteran, married to someone he loves. let him live his life. the spirit of our society is people should live freely. not, scaramucci is going to support or endorse a democratic candidate, that is not the case. iwasn't walking back anything

said about the mayor. i like the openness of what he's doing but i clearly support the president and i would like him to get reelected. i don't know how you can get any more clear or blunt than that? if you want one of my trump decoder rings, i'm going to be putting them on sale over by that rolls-royce suv. maybe i will give you one for free. no, no, no, anthony. i will have to exercise my journalistic independence and b uy the decoder ring with my own money. anthony scaramucci, cofounder and managing partner at skybridge capital. we are at the salt conference in las vegas. recap,: i just want to disney earnings real quick, earnings did fall but they didn't fall as much as folks thought they would. most of the revenue act key segments, cable tv up about 1.6%. disney right now on the

conference call saying that bookings in the third quarter at its theme parks up about 3% so far. this is bloomberg. ♪

romaine: time now for smart charts with abigail doolittle, where we walk through the latest market analysis. abigail, i hear you are taking a look at the effects of this week's trade induced stock volatility. abigail: some damage has been done to the charts. to do this with me as david. thanks for taking the time to join. , is bullishnd, ari on tech. but you are bearish on tech. we have a bull-bear battle.

david: i hesitate to disagree with him but i will give the alternative thesis. i talked with my clients about a series of timelines you have to pay attention to. the nasdaq is one of the key ones. you start with the low in december, -- in december. you tested in march. even though the s&p 500 potentially has broken down earlier, this is such a violent swing that is the beginning of something, not the end of something. strongdrop would put a 7100. 7150, that would be the 200 day moving average. in my opinion, that is a good starting point. it is all about how we trade below this. we will see how the rest of the week plays out. at the bottom, looking at the advanced decline line. it is sort of a measure of the great tech oriented exchange.

this has actually held up ok. one of the signals i would look of the morervation cautious thesis, is some sort of internal weakness confirming the fact that there's momentum behind this selloff. seeing awhere we are limited breakdown is the chips, the discretionary sectors. for a i'm always looking good market tell, a good indication of when the dynamics are potentially changing. these are two ratios that are important to watch. we have the relative performance of semiconductors. at the bottom, a traditional offense versus defense. what you can see with both of these, if you draw some trendlines, they just started to break. a regime change, a leadership change away from technology, away from semiconductors, if that follows through, we start to see a

breakdown in those ratios, i think that is where you have cause to be a little more concerned. a really good broad market barometer because they tend to do well when the market is doing well. abigail: another cautionary signal. let's end on a bright spot because you see catch up potential for exchanges. david: financial stocks have been a compelling technical story while things like technology, discretionary, perhaps more extended recently. he we are looking at the iai, a broker-dealer and exchange. you are looking at the relative performance of that etf versus the s and p. this sold off a little more aggressively than the rest of the market. as it bottomed out into the new year and started to rally, performance still relative you -- relatively muted. the past few weeks, we have broken above average. we have broken above the neck

line. potentially more upside. this feels more early on in the potential of further upside. abigail: great stuff, david keller, getting a little more defensive now except for these broker-dealers and exchanges. crypto making a comeback. we will hear from investors next as bitcoin approaches a 2019 high. this is bloomberg. ♪

joe: cryptocurrencies feeling the heat after one of the world's largest crypto exchanges , a massive security breach, just the latest of a long line of thefts in the space. i want to bring in eric turner. crypto exchanges get hacked all the time. it is not that weird. it's just something that happens in the space. what made this hack remarkable was two things.

1, 40 $1 million or something like that worth of crypto, like the biggest exchange in the world. well-known.nder was floated this idea of a theoretical rewinding of the bitcoin blockchain to reverse it. in the end, they are not going to do that. clutching pearls over this idea. explain why this is so controversial. actually wasn't him who proposed it. it was a bitcoin core developer on twitter who brought it up to him. he started to run with it not realizing the technical things that were behind it. i think the big issue for people is, to a lot of purists, being able to rollback transactions or

change anything on the blockchain, to them, seems like it runs in the face of immutability. these small reorganizations happen all the time on the blockchain. there are orphan blocks and things kind of fork off and go back to the main chain. caroline: heresy is what we heard it called. what thisgly, i think does prove is that certain exchanges are grown up enough to have the insurance to be able to protect against these collateral damages. it is notable that no one has lost money aside from them. tether a few had weeks ago and i think that was probably bigger news. i think right now we are probably a little bit south of 6000. not much going on. you look at the size of the hack, about $40.7 million. they are raking in hundreds of millions of dollars every year in profits.

not very much for them even if they didn't have the insurance. back in the day, you had mount x, over you had mt. go 500 million. i think this one turned out to be -- romaine: it is good we have the resiliency but when do we get to the point that we will stop or at least reduce the number of these incidents. what is the solution here? there are hacks all the time. it is a very high-tech industry. is really the first big hack we have had is not that big. romaine: thank you very much for giving us your insight today. caroline: that is all for "what'd you miss?" romaine: "bloomberg technology " is up next. this is bloomberg. ♪

emily: i'm emily chang in san francisco and this is "bloomberg technology." drivers for uber and lyft turned off their apps on wednesday to protest what they say were declining wages at a time when both companies are raking in billions of dollars. both companies enter the public market. facebook's blockchain bet. addi 5