♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." the biggest tech companies set to report earnings this week, including apple, amazon, google and facebook. president biden's team continues to shape up. how could a biden administration shape the internet? we have some early clues.

we will discuss. google is stubbing its massive resources behind the mass vaccination effort, opening google offices for shots. search engine's chief health officer joins us on the $250 million effort. ransomware was the number one cyber security threat in 20. what will it be in 2021? what agencies are most vulnerable? we will hear from an official. although stories and more. but first, u.s. stocks gaining, led by tech shares. some of the biggest tech companies this week. walk us through the day. >> we saw the defense of trade take place in the market today. nervousness around the 1.9 trillion dollars deal biden has promised. maybe that deal could not come as soon as possible. it's take a look at some of the indexes. the s&p 500 underperforming the

likes of the nasdaq and new york faang index. those big tech really outperforming permitted notable performer, the russell 2000 the beneficiary of the stimulus bill, really underperforming today, showing you how much nervousness there is. let's flip up the board. one of the other pieces of the never to was the idea that biden has talked about a delayed vaccine rollout, some hiccups in that process, as well as reinstating those travel bans across the world. you are seeing moderna, pfizer in the green. the vaccine protecting against two known virus variance. it brings us to the stock of the hour. one of the biggest stories today driven by the retail traders, gamestop in three days nearly 100% gain the upside by retail and then pulled back and still able to maintain 96%.

this really shows you the power of the retail trader and how the short positions that were against the stock have really been squeezed out. emily: all right. that volatile and remarkable gamestop rounding, certainly want to watch. we will be following that. thank you so much for that round of. as i mentioned, this week we will continue to see big tech results. tuesday we hear from microsoft, amd, texas instrument. wednesday comes apple, facebook, tesla. earnings season at an awkward time. president biden has promised to get tough on tech, but the question is how? i want to bring in austin. austin, walk us through the clues we actually know so far. biden talked a lot about tech on the campaign trail but it has been in focus. >> because biden did not talk

about in much on the campaign trail, you are seeing a lot of people read the tea leaves of biden's digital agenda on the appointment they are making, just whether that might signal the coziness between the obama administration and silicon valley, which was largely seen as friendly with big tech, or whether it will be a lot more aggressive in raining them in and a new chapter between the beltway and big tech. so far, we have a number of roles being reported for people with ties to google and amazon. there was the apple executive on the transition team which would signal the continued coziness. at the same time, biden has also designated jessica, acting chair of s.e.c., who was a strong advocate for net neutrality on the digital side. that is likely one area were big tech in washington can work together on. another chair would be rebecca

kelly slaughter. there was a great article on bloomberg talking about how she has been an advocate for consumer privacy, strong data protections, which would likely raise some alarms for a company like facebook. and then more recently, we had reports of the white house concerning the antitrust czar. there is an fcc commissioner reportedly in the front running for someone who served as legal counsel on the antitrust committee's investigation, which again that would be another signal that he may be more aggressive on raining big tech and. that is why people are reading the tea leaves because there has been a vacuum of information on tech policy from biden during the campaign. emily: right. you mentioned the big one. the acting sec chair at the moment has been on this show a number of times. as you sent them a big supporter of net neutrality. and then there is rebecca kelly slaughter at the ftc. two organizations that will have

quite an influence. the big question now is not just the power of apple, google, facebook, amazon, twitter, but also in the wake of president trump banned from twitter. there is the concern about the power of these companies. not just from republicans but on both sides of the aisle. i wonder if that makes it a unique issue here. we spoke to roger mcnamee who said biden has no choice. he cannot avoid tech reform. the question is what it looks like. what are signals we got from biden on the campaign trail? i know he took some actions on facebook, made some critical remarks, but it was not necessarily a distinct fear. austin: yes. it was not as concrete or aggressive as the elizabeth warren wing of the party in

terms of talking about breaking up big tech companies. biden talked generally about the arrogance that silicon valley has. he really focuses a lot of his criticism on what he calls abuses of power by social media platforms, reserving a lot of ire for mark zuckerberg and facebook. the most specific thing he talked about was him supporting a repeal of section 230, which is the legal shield that protects internet companies from liability of content published on those platforms. so, yeah, the question remains though, will that be something they actually pursue more seriously in the coming months with covid-19 being such a focus of the administration? or will that take in the longer to get to? likewise, how much will he support the antitrust enforcement to which he has some bipartisan support. but again, we have not heard

from biden in terms of how he will support those efforts, although the big tech earnings coming up might change that. emily: right. these companies's stocks have continued to climb even as the rest of the economy has suffered permitted how do earnings happening this week kick off the relationship, and could that impact the dialogue? austin: these companies between apple, facebook, google, and amazon, they collectively delivered $67 billion in net profits the past two quarters, even while so many parts of the economy are struggling. that will put a ton of pressure on biden to respond to these issues and maybe set the tone for how he is going to deal with silicon valley in the next couple years. amazon and apple, analysts expect them to deliver as much as $100 billion a quarter each, which is massive compared to the struggles other parts of the economy are seeing.

with trump, you saw him taking credit for those strides. the question remains whether that will be the right tone for biden to strike silicon valley or that will put pressure on him to rein them in, be more aggressive, and say these company's are too dominant at a time when others are struggling and we need to be serious about raining them in. emily: all right. austin carr. i urge you to check out his newsletter. so much to come. coming, google investing $150 million to make sure they say we all have equal access to the vaccine. we will talk to google's chief health officer dr. kevin desalvo next. but first, california governor gavin newsom talked about lifting the stay-at-home order. take a listen. this is bloomberg. >> at the end of the day, we continue about this remarkable moment, the most difficult surge since we have seen since the

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emily: dr. anthony fauci earlier spoke today at an event in davos. our editor-in-chief spoke to him. let's take a listen to what dr. fauci had to say. >> i think it will be this spring. i think we will be able to do that this spring, but it will be a logistical challenge that exceeds anything we have ever tried in this country, but i think we can do that. i feel confident that by summer we will be well on our way to heading toward herd immunity.

emily: obviously that was president biden, not dr. fauci. but additionally, very important information in terms of where the biden administration sees the pandemic at this point and our ability to fight it permitted the world's largest search engine is now throwing its massive resources behind the mass vaccination effort. google has announced it is pledging $150 million to promote vaccine education and equitable access and will open up some of its corporate offices for use as vaccination signs. joining me now for more, the former assistant secretary for health under the obama administer should, dr. kevin desalvo. a lot happening here. you are offering your sites up as vaccination sites as well as flagging them on google maps maps and google search.

talk to us about why you think this is how google can have the biggest impact. >> thanks for the time to day. google has been supportive since the beginning. people have been coming to us every day for information about health and particularly wanting to know how to protect themselves and their families. in a number of ways last year, we have been bringing out information from health authorities and the cdc. this vaccination effort is another turn of the crane, putting forward information for the community when they look for it at a maybe want to help facilitate everybody get vaccinated because as the community goes, we all go. the announcement we made today is the way we can provide resources to authorities, local community based organizations, often the most trusted on the front lines of the community, so

they can get the information they need about if they are eligible for vaccine, to build confidence, and when the time is right for their return, they will know where to go to get the vaccine. the availability of vaccination sites all across communities, not just those that google will make available, but of course any local facility that will vaccinate people in the u.s. and eventually worldwide. emily: let's talk behind what you hope will be faster just a region of the vaccine, more equitable description of the vaccine. how can you ensure the money will do that? dr. desalvo: one of the things we know we have a responsibility in his good information in general, but especially around vaccines. one of the important ways to get people to understand whether

they are eligible, answer their questions about vaccine safety, understand how vaccines are made, what is the regulatory pathway that is normal, to help agencies good at their job. i'm a former public health official in new orleans and it is important our message get out to the community and that they look to the local pastor or local worker at the community health some of the resources we are providing will help and provide the messages and the information local communities want to share with those childhood community members they have. we are also working on important equity work. we want to bring forward information to help us understand the world, especially in the country, how we are doing in terms of equity. are we making sure the vaccines will reach the right populations who are at higher risk? we partner with them as a way to

bring data and information to give insights to public health and how to target vaccination campaigns. the last piece i would call out is the opportunity to make sure local frontline organizations are the place that community members are going to turn to to get vaccinated and to answer those questions. i also know that as a doctor sometimes those questions are asked in the exam room. in that moment of decision-making, that is another way we want to be helpful to the world so that everybody can get vaccinated when it is their turn. emily: now, as a doctor, we hear president biden saying he can do the for 100 million doses in his first 100 days. we are seeing these models that say the u.s. will be fully vaccinated by june or july. does that all sound realistic to you? when do you think this country will be fully vaccinated?

dr. desalvo: emily, this is no doubt one of the most challenging things we will ever try to do in the history of mankind. we are trying to reach anybody on the planet with a vaccine. it is not just one vaccine. i think because of the remarkable compliance, we have a number of candidates already available in the field and some in the pipeline. i want people to remember that there are a number of vaccine candidates that can be made available for vaccination, but it is the vaccination part that saves lives and getting people on the front line to have got shot in arm. and making sure the supply chain has the right svenja's and the uptake. people have to be ready to receive. they have to be confident in the scientific and megan sawyer process.

-- and regulatory process. if they have questions, they have somewhere to go for answers. that will be the local doctor or local pastor or health worker. it is a compact operation we are trying to all undertake and that is why we want to do our part. this is going to be an opportunity for everybody to lean and and help with the private sector to do what they can, whether it is information or resources to get everybody vaccinated in a timely fashion. emily: now, we don't have much time left but this is a really important question. how do you feel as a doctor? how satisfied are you with the efforts google has made so far to combat this information? the vaccine information, not just on google itself but on youtube? dr. desalvo: i joined google a year ago and my background in management and public health has an amazing opportunity to marry

with the technologists here. what i realize, the millions of pull that come to us for information every day, we take that as a serious responsibility. not only do we want information from the cdc local health agencies, but we want to be on the lookout for this information. really important that we are getting in front of misinformation and where we can, especially services like youtube, we are helping to remove it where it is harmful or creating content with influencers that they can bring that science right to the communities. so we consider it a major responsibility and are doing great work across the world to address not only misinformation but bring forward all the information and keep leaning into this pandemic and beyond. emily: youtube recently hired a doctor to strike some partnerships and get more of that quality information, online partnerships with mayo clinic,

the cleveland clinic. do you think the secret to this could be google bringing in more health experts like yourself? dr. desalvo: we have been building up our in-house expertise. we also know it is a big world and a diverse world and to have truly inclusive health information that we will have to rely on partners. not just what we can build in-house. we are really grateful to those who have been willing to partner with us through youtube. we will do the same as we have in the past on search, even before the pandemic we have been working with the national health service or cdc or mental health agencies in the u.s. when people ask questions about diabetes or depression, they have a pathway they can navigate to bring them to resources. google does not need to create a lot this information. it is just that we need help amplifying the good information being created by the public health and others. you are seeing the beginning of a journey. very accelerated.

wanting to meet people where they are. be a great partner to public health and medicine. and we look forward to continue that. emily: dr. karen desalvo, google chief health officer, we hope it works. thank you so much for joining us to talk about what google is doing. we will have more "bloomberg technology so you're a small business, or a big one. you were thriving, but then... oh. ah. okay. plan, pivot. how do you bounce back? you don't, you bounce forward, with serious and reliable internet. powered by the largest gig speed network in america. but is it secure? sure it's secure. and even if the power goes down, your connection doesn't. so how do i do this? you don't do this. we do this, together. bounce forward, with comcast business.

>> there are a few things that are really complicated and overlapping that explained almost the unimaginable number that a very rich country which before the outbreak was judged by a number of evaluating organizations to be the best prepared for a pandemic actually got hit the worst. and i think what it reflects is i hope we can learn lessons for the future. first of all, something deep prime minister mentioned. we had the opposite.

we had the situation where instead of concentrating from the top on the science and realizing that we must make decisions based on data and based on evidence, there was a considerable amount of mixed messaging about what needed to be done from the top down. and that really cost us dearly. the other thing that may involve things going on in other countries but certainly intensively going on in the united states and makes it extremely problematic to adequately address the public health crisis when you are in the middle of a profound moment of divisiveness in the country, when public health issues become politically charged like wearing a mask or not becomes a political statement, you cannot imagine how destructive that is to any unified public health message. >> do you think that in the end

the biggest weakness of america as it is a health-care system which is designed to look after the old and especially the rich, that any pandemic was bound to expose something given the fact that america does not have a public health system on the same level the country is representative of? dr. fauci: a pandemic as you alluded to shed a lot of bright light on the weaknesses of society. one of the things you are alluding to come of our health care system, which really needs to be strengthened at multiple different levels for the reasons you are hinting at. the other thing it is shedding light, embarrassing light on is the extraordinary disparate difference we have to get a vastly disproportionate amount of suffering among our brown and black people, minority

population, of which the incidence of there getting infected is much higher, their degree of hospitalizations, intensive care, and death, is significantly higher than the population related to the social determinants of health ingrained in our society since the beginning. ♪

emily: welcome back to bloomberg technology. the silence from president trump since he left office has been deafening. he's been suspended from facebook indefinitely, from twitter permanently after armed rioters overtook the capital. imagine if the companies had blocked him sooner. should these companies have this much power? with me the touch a lamb -- natosha lamb. it's an interesting

hypothetical. the silence underscores the power that twitter and facebook have. if you were on the platforms, i doubt would feel this quiet. natasha: i think this is a welcome calm for a lot of americans who were horrified a couple of weeks ago by the insurrection at the capitol. that was the most vivid illustration of what investors have been warning about. the dangers of hate speech and the promotion of violence on social media platforms. that didn't happen overnight. we saw trump sow disinformation about the election for a long time. we saw hate groups start organizing over social media long before january 6. trump became catalytic. if he was the match, social media was diffuse.

-- was the fuse. that is how quickly hate and disinformation can be amplified through the social media engine. as a citizen i am concerned, and i'm also concerned as an investor. emily: do you think that these companies should have this power ? natasha: i think it is a complicated question and what we have now is not working. we have been asking social media companies to address content governance since 2016 when it was the russians sowing disinformation not the americans. five years later and we have a deadly insurrection. i wish these companies had responded to shareholder concerns earlier. we are continuing to push for change. when we start to think about what will happen with a new administration and regulation, the power of these companies is

being questioned. no doubt. we've been ringing the alarm bells on leadership and how much power is in the hands of these companies, particularly when you look at facebook, ho wmuch power mark zuckerberg has. we've seen these companies now show some action, show up and take down trump's account, but it was too little, too late. the storming of the capitol happened on their watch. emily: on that note, do you think they should have taken him off the platform sooner? with the last year have been different? this is hypothetical, might we have avoided that insurrection at the capitol? natasha: i think that there have

been so money warnings throughout the year. during the black lives matter protests, we saw trump tweet when the looting starts, the shooting starts. that was glorifying violence. the social media companies have taken the position that it is important that a world leader be able to express themselves. they may flag and say, this isn't the right information, etc, but what was really staged over the last few months was a disinformation campaign that spread throughout social media. i think the company should have acted sooner. it's not just the companies that were threatened but the fundamentals of our democracy. i think they are in a tricky

spot, the fact that it is the president. emily: if you are just joining us, we are watching live shots of the u.s. senate starting to vote on the confirmation of janet yellen for treasury secretary. we're expecting this to happen with no problem. of course, continuing to watch as that live vote happens on the senate floor. natasha, we are seeing president biden's cabinet. we are seeing new appointments when it comes to the acting chair of the fcc. we are waiting for those posts to be officially filled. what action would you like to see the biden administration take on tech, especially social media companies? natasha: i would like to see the

companies themselves take the action of improving leadership. we'd like them to add human and civil rights experts to their boards. to make sure the leadership is addressing these issues. in terms of looking at section 230, the rule that protects internet companies for legal liability as to what is posted, that needs to be addressed so that there is some level of accountability. it has been a strikingly bipartisan idea that social media companies need reform. trump and biden have both called for section 230 to be revoked with different motivation. there's common ground that there should be common sense regulation. it's not a simple question. there's this dichotomy. are these companies commentary

and anything flies or are they publishers with editorial judgment? they are akin to a bookstore. they don't have to carry everything. they are not common carriers, but they also don't need to put everything in the front window and treat everything the same. when content that is promoting hate, when algorithms are giving that oxygen, that is editorial judgment. it's going to take real expertise and grownups in the room to get this work done. we saw biden asking chair jessica -- who, if named, would be the first woman chair in the history of the sec. she said she doesn't want any

change to section 230, but it would not happen through the f cc. it would happen through congress. we need a bipartisan approach to this issue so that our democracy isn't under attack again. emily: you're right. jessica rosenworcel has been on this show a couple of times. she doesn't think section 230 falls into the purview of the fcc. others might disagree. that is a signal and we will be watching to see who gets that official spot in the chair position. natasha lamb, thank you for joining us. we continue to watch the senate floor where they are voting on the potential confirmation of janet yellen. we will keep you updated on that as the vote continues. is silicon valley losing its luster among venture

capitalists? we will talk with someone who thinks the total share of deals in the u.s. is going to fall. that is next. this is bloomberg. ♪

>> many has spent years trying to sprout their own silicon valley. companies are relocating to places like austin and miami. joining us to discuss, the pitch book director of institutional research. you believe that deal count, the

share that the bay area claim s, is going to decrease. what are you seeing? >> if you take a step back and look at the broader industry, you saw to $90 billion come back to institutional -- $290 billion come back to institutional investors. we expect a lot of the capitol to come back to the market. in previous years, we started to see funds being raised in different ecosystems outside silicon valley, whether michigan, florida, the midwest. what we saw in 20 was a pull-through of transaction flow -- in 2020, was a pull-through of transaction flow. those companies to be successful, they need a larger dollar output.

we are starting to see more early-stage investors make their way there. covid-19 created this pull-through effect of creating more viable targets. we think that will continue to push forward. it will equal bigger outcomes to those areas. in the early stages of this shift happening, covid-19 has propelled it forward. the total dollar value will be higher in silicon value but we will see more companies funded by outside reach picking up in the next couple years. emily: there are these -- hundreds looking to acquire tech companies. there are concerns that it could increase valuations and impact the venture-capital landscape. what is your view on the flow and where the dollars go? >> if you think that you are adding another element of

innovation, it allows for different liquidity options to the traditional ipo, m&a, or buy exit avenue. we talk a lot about the airbnb, the uber, the slacks, who can make it through public listing. there are a number of cup knees who are not large enough to take a risk from the pricing perspective or to a for the process of going through an ipo. we have seen private equity jump up. slack is another added innovation that allows these companies to move forward in a public setting and raise more capital and increase their brand. we have seen nontraditional investors play. that includes asset managers driving a big portion of lead transaction over the last years. that continued in 2020. a lot of these investors have

been involved, which we think will continue. i don't think that it will drive valuations. there are outside companies. in general, it provides another way for these companies to find liquidity and to add more innovation to allow these companies to exit. emily: the senate is voting on the confirmation of janet yellen as treasury secretary. speaking of president biden's filling of his cabinet, he has unveiled his economic plan but we are in the middle of a recession. tech companies are among the few that have done well through the pandemic. how will he knew administration influence where folks put their money? >> the industry has done a number of great things over the past few years to elevate its brand and the role that it can

play for the u.s. government and for the country as a whole. if you think about where venture investors are allocating dollars, you can see that in technology and health care. as we move through the pandemic, we saw health care, biotech, and pharmaceutical receive ample investment. it smooths out the volatility you might have had of people -- from people working at home. as we move forward, you will see an administration more friendly and willing to work with the venture community. they have done a lot to make sure they can work closer together. if you think about climate change or pharmaceuticals, a lot of that will be driven by venture-backed companies. there is a lot of synergy that has not existed before with the u.s. government and the administration will take the

most from that. emily: thank you for giving us your outlook. we continue to watch the senate voting now on the potential confirmation of janet yellen as treasury secretary of the united states. the vote is ongoing. we will bring you any updates as we have them. still ahead, president biden is asking for more money than ever to defend the united states against cyberattacks in the wake of -- we will speak next about what the administration needs to do to safeguard america in cyberspace for the next four years.

emily: we are watching live pictures of the senate floor

where the senate is voting on the confirmation of janet yellen as treasury secretary of the united states. she would come into office with a full plate of issues. the u.s. economy is in a crisis. millions of people have lost their jobs. no small amount of work for her to do. we will bring you updates as they continue to roll in. in the meantime, president biden has requested a 10 billion dollar investment for information technology modernization to protect against cyberattacks, far higher than any previous request. this as cesa rolls out a warning of a plague of new ransomware attacks that are threatening public and private networks. what are the biggest threats

this administration is walking into and why would president biden need more money than ever? >> there is no shortage of fantastic threats. you have nationstates, foreign intelligence services, cyber payroll, and troublemakers. there are lots of threatened lots of exposure. our country uses technology in every way. there is a lot of exposure that needs to be shored up. emily: where do you think the money should go? where should it be invested and how should he use the resources he has at his disposal? >> in the proposal, there is a lot of money being requested for i.t. modernization. that should come as no surprise. there are a lot of legacy systems which over time become increasingly exposed. they are not maintained or patched when new vulnerabilities

are discovered. though systems are not managing a professional way. they become exposed. vendoers stop producing patches after a couple of years. a lot of money toward awareness. a lot of money toward modernization. those are some of the fundamental things which are required. this issue is crosscutting and it will require a tremendous effort on the part of the federal government and in the private sector where so many of these reside. emily: it looks like janet yellen has the votes she needs from the senate to be confirmed as treasury secretary of the united states. this would make her the 78th treasury secretary of the united states of america, the first woman to hold the job, and only the second american to have run

both the federal reserve and the treasury secretary. the first woman to head the u.s. central bank. she oversaw a winding of monetary stimulus policy. a full slate of issues. the recon -- the economy in recession, millions of americans have lost their jobs. we expect janet yellen to become treasury secretary of the united states. she has the votes in the senate. our guest is still with us talking about cybersecurity. we are seeing president biden's cabinet being rounded out. we are waiting for more appointments on the security front. i wonder what your advice is to the biden administration when confronting an unprecedented

threat landscape. >> any incoming administration need to recognize that cybersecurity and technology risks are critical across the board. its true of every federal department agency and of every major sector of the economy. all organizations, all enterprises leverage technology in a way that makes them more efficient. that efficiency and use of technology makes them vulnerable to attack. we've seen lots of examples. last year, nearly $1 trillion of loss because of cybersecurity breaches. this is something the administration has had the opportunity to address head on. emily: you put out a study that 77% of companies say that they expect attacks to increase. we are on the back of the solar

wind pac. i wonder what kind of alarm bells it raises to you about rising threats in the supply chain which can be really difficult to prevent. >> 77% see the breaches increasing. 94% of organizations have suffered a business impact and breach in the last 12 months. 77% expected that to increase over the coming year. that is significant. what that tells us is that boards of directors and corporate leadership needs to get engaged. they need to realize this is not something that technologists and the organization deal with but something that has a significant risk to the enterprise to be

addressed at the corporate level. emily: what will be the defining theme of 2021? we're in a new administration, a different political landscape, but also dealing with the global risks that have divided the united states and global allies as a result of the last administration? >> from a technology and cybersecurity risk perspective, the theme in front of a circles around transparency. we have a lot of individual states that have breach notification requirements. that is around the compromise of the disclosure of personally identifiable information. it doesn't require that other breaches, which may be quite material, to be disclosed.

that means we have organizations which are under reporting breaches. we don't have a true assessment of what that landscape looks like and what the true cost us as a nation is. emily: we will have to leave it there. amit, thank you for joining us. this is bloomberg. ♪

haidi: very good morning. we are counting down to the major market open. shery: our top stories. china calls for more global cooperation. xi jinping tells the world economic forum that confrontation is a dead-end street. janet yellen will be joe