move your xfinity services without breaking a sweat. xfinity makes moving easy. go online to transfer your services in about a minute. get started today. emily: i'm emily chang in san francisco in this is bloomberg technology. racing for fallout -- block trade seized following revelations that banks including goldman sachs and morgan stanley liquidated holdings from bill hwang's archegos capital

management after he failed to meet margin calls. plus impending doom -- a warning from the head of the cdc, with covid cases on the rise. we have the green light from the government for at home testing kits back in may. facebook's future -- from headsets to wristbands, we will talk augmented and virtual reality. one of the social networks longest deputies who has helped mark zuckerberg whether his biggest controversies from the very beginning. we begin with those block trades and acs on investor sentiment. ed ludlow is here to talk about the ludlow -- talk about the markets. >> you didn't see a ton of action. take a look at the chart behind me. a mixed picture as we go and we are starting with the s&p about flat.

not a major move, but here's where all the action was. some pain in the semiconductors index. the big tech names, apple, facebook, google, those are the ones that lifted the s&p 500 higher and that's why you didn't see the same pain in the s&p 500 as you did with the small caps and semi conductors. i want to show you that nasdaq -- here's where we are seeing some tech pain, little pullback. on a two week basis, not much of a move. not making much progress. we want to see if there's momentum to move those broader tech names higher or lower and right now, you are just seeing them tread water. i want to bring you to the major story today, the archegos capital fund blowup. that's the volume of all the stocks involved that trade.

that's just today. compare it to the volume you see going all the way back and that tells you the story from friday and this weekend certainly plays into the narrative today. the question is does it play into tomorrow? ed: those names at the heart of the block trade -- it has been a multi-day event. at the heart of this, one of the stocks is viacom, cbs, down almost 7%. it had been down as much as 11%, its lowest level since january. discovery, also down after a dramatic fall in friday of 27%. the other part of this story is the adrs. receipts of chinese companies. but it's not about one single thing. look at the five day changes. this is the impact we are seeing.

then if we look at the banks at the center of this story facilitating the liquidation, there are some interesting stories, starting with some of the american banks. goldman sachs, off by just .5%. according to sources, morgan stanley is still shopping a large block of cbs shares on sunday. goldman sachs is telling clients and shareholders that it is insulated in terms of losses from its exposures to the stocks at the heart of this story. credit suisse off almost 14%. america off 16 -- numera off 16%. falling by our record with big exposure. they did not name who, but they did say it was big exposure. emily: thank you so much for breaking that down. for more on what's next, we have romaine bostick with us who just

wrapped up a special on this topic. give us an explainer. what is a margin call and how did this happen in the first place? romain: a margin calls you are basically borrowing to buy a security or a block of securities. this is where you can use leverage to borrow something and if you make money, you make more money and the idea is it gives you more upside. of course, that leverage can work against you. if you buy something on margin, your are owing. you are saying you have a certain amount of collateral and that collateral is the stock you are buying. as long as the stock remains at a minimum level, you are ok. if the stock falls below a minimum level, the broker comes back and says you either need to put up more collateral, actual cash to cover that gap or you have to give up the securities themselves. on a small scale, this is not problematic.

it happens all the time. but on the scale of what we saw with archegos, at least by bloomberg estimates, it was the billion dollars in total securities, that probably means the borrower doesn't necessarily have the cash in his or her pocket to cover that. emily: doesn't margin debt go up when stocks go up? why is this such a big deal? romaine: it's the scale. this type of stuff happens, particularly with hedge funds. they affect their position to get better gains. the problem is when those trades start to work against you, you have to cover those additions. by some accounts and this is a family office that was larger than some most -- some of most of the headphones -- some of the hedge funds we cover on

bloomberg. a big part of that $20 billion estimate was concentrated in a small handful of stocks which exacerbated the situation. emily: so the big question is is this going to kick off a broader market pullback or not? romaine: the consensus seems to be no, but you will find a few people who say this is endemic of something that has been going on in the margin. a lot of people brushed off that gamestop saga at the time. but now they are looking at with this current issue here and they are saying this is happening over and over again. the incidences may not be related, but when you amalgamate them together, it raises issues about market transparency and market fairness. a lot of folks we spoke to today say this is the type of thing that gets regulators attention and is the type of thing that has regulators coming into the

picture saying maybe we need to change things and typically, for wall street, that's not what they want to hear. emily: thank you so much for breaking it down. we will continue to follow it by the day. coming up, amazon is at the center of one of the most consequential union elections in recent history. the vote counting underway at this moment to determine the fate of thousands of workers in alabama. we will have the latest, next. this is bloomberg. ♪

>> i want to say to mr. bezos, why when you have so much money, more money than can be spent in a million lifetimes, why are you spending millions trying to

defeat and effort on the part of workers here who want nothing more than decent wages, decent benefits, decent working conditions? the reason amazon is putting so much energy to try to defeat you is they know if you succeed here , it will spread all over this country. emily: senator bernie sanders speaking with amazon workers. the historic union vote happening as we speak. counting the vote will take a few more days. with more on what's at stake is josh heilemann, joining us. when exactly will we know and how likely is it the union wins? josh: we don't know, among other things, when we will know because it depends how long it takes for the two sides to go over whose eligibility they are contesting.

nobody knows what the outcome will be. we do know amazon is facing this biggest election that they faced in the u.s. and a wave of woke her protests and scrutiny. on the other hand, a win in a labor board unionization election at a top nonunion employer in the u.s. is something that is quite few and far between in recent decades. emily: if the union wins, what happens? does it spread to other states? josh: if the union wins the election, amazon will have an opportunity to contest that outcome. if the outcome is finalized, we have seen companies successfully stalled negotiations or prevent contracts from bree -- from being reached for quite a while. we will see inevitably litigation and struggle around these issues for a long time, regardless. but should the workers win the

election, it will be a tremendous symbolic victory and escalate pressure on the company and escalate the organizing going on around the country. if the union loses, we will continue to seek workers taking up struggle and collective action against the company. some, i imagine, we'll go back to the labor board and their own workplaces and some will look to other avenues. emily: amazon has been pushing back on this revival of union agitation really aggressively. it beat from the amazon official twitter handle pushing back on speculation that amazon workers, claiming millions of workers around the world are completely happy. what do you make of that strategy and amazon's response? josh: amazon clearly is choosing to take an aggressive tack making its pushback on the story. that back and forth will have

much less impact on workers actually voting than what amazon has been doing in the workplace like mandatory antiunion meetings the company employees have discussed being forced to attend, but it reflects how this is a major national political issue and whatever happens here, the experience at amazon will be exhibit a and place unions and democratic lawmakers to change the labor law system. emily: thank you so much for joining us. we will continue to follow how that vote plays out in alabama and beyond. coming up, imagine your next meeting not at home or in the office but in virtual reality. facebooks andrew bosworth says it is coming fast. my interview with the head of the social networks reality labs is next. and bank stocks trading -- facebook's -- facebook leading

the gains. we will keep our eye on all of it. this is bloomberg. ♪

emily: we've got some breaking headlines out of nissan. bloomberg has just conducted an interview with the companies former top lawyer who is accusing nissan of surveilling his family and others. this is a complicated back story, but if you remember, the ceo of nissan was arrested and jailed for misconduct. there is an ongoing investigation into his behavior as well as the behavior of other executives. this former top lawyer was charged with doing an investigation into nissan's

handling of the situation and was demoted and is now suing the company for wrongful termination. he says he cannot comment on the ongoing legislation but one of the biggest bombshells was his claim that the company surveilled him and his family. we have a response from nissan here -- saying nissan is contesting the claim which contains numerous mischaracterized allegations. we are unable to comment further on a matter subject to ongoing litigation. we will continue to watch for more develop and's on that story. it has been seven years since facebook bought oculus. the big bet on the headset still has not gained a mainstream moment. i caught up with andrew bosworth to hear his vision for the oculus quest and whether it will be used beyond gaming. andrew: we think this could be

the next generalize compute platform. started with gamers but it is breaking out beyond that. you see fitness as a popular emerging category, offering a window into how it could be better to people who are not physically able to be together to have an experience that felt like they were together, like they were having a shared experience of life and that is what the potential of vr is and quest is the first mainstream headset that can start to deliver on that promise, even if only little pockets for now. emily: we've been talking about the potential and promise for a long time. i remember when facebook bought oculus in 2014 and it still has not have that mainstream moment, if you will. when does that happen? is it still a few years off? andrew: if you look closely, i think it's starting to happen now. the fact that oculus quest two has outsold not just its predecessor, but all its predecessors combined.

it's a tremendous indicator we are at the point where we have broken through from the early adopter crowd to an increasingly mainstream crowd. emily: how many hours a day do you spend inside and oculus headset? andrew: we spend a lot of time play testing and we are starting to do meetings and virtual reality. just yesterday, i was in the headset for two and half hours. i definitely get use out of my battery. emily: coming out of the pandemic, do you think there will be the same appetite to socialize and virtual reality and augmented reality when we can actually be with each other? will there be demand for that? andrew: we had this vision long before the pandemic came along. we are separated from people we love all the time and we are increasingly in a global workforce where people we want to collaborate with aren't necessarily going to be next-door.

i think this technology has somewhat -- has so much more promise than we are giving it credit for to transform the landscape of global work and the opportunity people have as it becomes more and more mainstream and available. emily: we tried it out this weekend -- you've got one person in the headset in their own world rather than a world with us and i wonder how do we make ar and vr more social? andrew: the first one is virtual reality is great for people who are not physically next to you. it could move us forward on these things where you can be present in the real moment and be more connected, whether it be capturing memories or inviting people to join you virtually, you and everyone who is physically together can see them and interact with them as if they were really there and they can feel there as well. i think we are just now getting

limbs is of a future that allows us to bring connectedness together. emily: how do you bring down the cost? right now, it's not very affordable, especially if you want multiple people and headsets. andrew: bringing costs down is essential to what we are doing in facebook. but i want to point out that we are five years from the anniversary of the launch of the oculus rift. that had its initial price and had to be attached to a gaming pc to even run. the total cost of ownership was almost $2000. today, you have the oculus quest two and you can get it for $299. that's an incredible reduction of price in a short time. emily: you are building a wristband to go with the headset. why a wristband? andrew: you think about the laptop and use a keyboard and mouse. if you have a display and a

camera and sensors, how do you communicate? you don't have a laptop, you are not going to have a keyboard or laptop, so what can we do? it turns out the wrist is an excellent place to be able to detect motor signals you send to your hand. we can detect them so well you don't even have to move your hand. over the course of time, you could manipulate or scroll without having to move a muscle, just by expressing an intention down your arm and having the machine react to it. we think the wrist is a promising place to explore. that's still in the research phase right now, but we are making progress. emily: will it also be a watch? andrew: that's another thing we are attracted to -- as a society, we are used to things being on our wrist like watches and bracelets. emily: i'm curious how portal

did through the work from home and what sort of agency learning you had their? andrew: portal was a tremendous success as people were feeling isolated from loved ones, they sought ways to collect -- to connect virtually and that's a great way to do it with families where you have more than one person and you are talking to grandpa and portal does all of that. emily: you are playing catch-up to other similar devices. are you going to be releasing annual updates or a voice assistant like alexa? andrew: we do have a voice assistant. i'm worried all my devices will turn on. but we do have our own assistant, but it's not trying to do the same thing. you can ship with alexa, as you probably know.

we can get content and calling and sharing with people. emily: if ar is the future of work and education and consumer interaction, could we create a new digital divide? what about people who can access or afford this technology or don't want this technology? andrew: i absolutely worry about that as it relates to ar and vr. the best thing you can do is popularize a technology and that's what drives the prices down and makes it more accessible. smartphones have shown us the way. smartphones are largely accessible across broad swaths of society. it took 10 years of it becoming the most popular device in history of the world but it did make it so you can get ap affordable smartphone at this. the top concern is how can we get this technology out there and make it popular enough to drive the cost down to make it

universally accessible? emily: head of facebook reality labs, andrew bosworth. we will talk to him about his 15 years at the social network, the lessons he's learned, and why he still believes facebook is making the world a better place despite many people who believe the opposite. more of that interview coming next. this is bloomberg. ♪

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it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat, all while controlling stress and emotional eating. at last, a diet pill that actually works. go to golo.com to get yours. >> welcome back to "bloomberg technology." emily: and told us how he believes virtual reality will become more access i will and affordable in the near future. the time on face book began in 2006. since then the company has seen rapid growth and never-ending challenges. i asked him to respond to facebook's that it is doing far

more harm to the world. >> i love the company and i love the people at the company and the work we do but i have done so many different things. if you look at what we are doing now, it is a far cry from where i started working on messenger and groups. emily: mark has since the very beginning that facebook is making the world a better place and so many people believe the opposite. are we doing as much as we think we are and making the world a better place or is the opposite true? >> what has been built up over the course of the last decade is very fair and i take that very seriously. nor me, i believe in the tool that are help people connect and power to share and have a voice.

but clearly, we didn't spend enough, as an entire industry, time, thinking about the negatives, the way in which technology can be abused. that is one of the great benefits that i have doing the work that i'm doing now doing facebook. i get to benefit from a global conversation about privacy, which has never been more important or more clearly articulated and where what we think is good about global technology or the problems it creates and we are doing that's years in advance like optical glasses are being real and think about how facebook was when it started 15 years ago, and where the industry was 15 years ago. we never talked about these problems years in advance with the public. i do take those criticism

seriously and i value them and i hope those criticisms is what makes this next round different from the last. emily: as you are trying to recreate the virtual world and how do we not recreate facebook challenges. what are the scenarios you are trying to troubleshoot and mab out before we get from. >> make sure there is tremendous transparency. what data is it gathering, why is it gathering it, where is it stored, can it be stored and how can the consumer control all of that. the more people understand, i believe in giving that power to people for people to decide. how is it in moderation will be problem for others and will be a problem for the internet and long after i retire.

doesn't mean you can't make a lot of progress. in content moderation, how can you build a community. what standards can you create and how do you approach them. the issue we are talking about here, security, privacy, content, these aren't new issues, but will take new forums and unlike in previous years, we are trying to get ahead of them well in advance of those things becoming a mainstream concern. emily: what about the unintended consequences that you can't predict? >> we have a historical record of the types of abuses that have happened in digitially-connected spaces. there are things we didn't anticipate and we have to be responsive to those things. that is true of any business. the critique of the entire industry over the last 10 years

that we are pollyannish at the risk of not seeing the negative is fair and accurate. that is a mistake we are trying to avoid going forward. emily: this new world going forward, we have glasses, g.p.s. why should we trust facebook or facebook will handle these challenges correctly? >> there is no short cut to trust. it is exceeding them consistently over time. that it formula over trust. it takes a long time. that's the job i have, to put the work out early and have the conversations out in the open and particular noling works with a sufficient degree of transparency that people do feel confident they can trust it and that it is valuable to engage with it at all. emily: has the criticism been

hard for you and has it been unfair? >> it is hard especially when you agree with it. nobody wanths to fail. nobody wants to screw up or miss some negative are consequence of their work, but doubled my resolve to improve and do better because technology is important and we will integrate it successful into how we operate and mao we vote and how we make progress in science and technology and how we communicate. it's not easy to have someone pointing out all of the things you haven't done all the things you would have hoped. if the system is working as intended. emily: what are your thoughts on tech addiction in general and creating a generation of children, parents, who are addicted to technology in a way

that is unhealthy. >> i bristle about the use of the term addiction and i realize the debate between sociologyists and psychologists and i have known people who struggled with addiction and didn't go homeless. there is a bit of a moral panic. and my conviction is that people should have control and the person should have the ability and understand what the technology is doing and be in control of their own decisions and i trust them to do it. i trust myself and my kids and people, individuals in society to be able to do that. emily: you mentioned children and let's talk about the next generation and you see the a.r. and d.r. as the next tool. how will it change our children's eyes?

>> and you know things like how many were raised in school that you can't look up any information. i can look up information anywhere in the world or told you aren't going to have a calculator with you. i have a calculator with me at all times. i think we have integrated the previous generation of technology in terms of how we educate and develop. but i think virtual reality probably have the most promise for kids today who don't have the access to quality education or experiences or economic access. emily: outside of instagram working on a kids working on 13 or younger, as a parent, is it cool or my worst nightmare? >> every parent has to be parent, doesn't matter if it is

instagram, books, tvs or bicycles. you have to help your kids set lilts for themselves and what the consequences. my kids are six and three and my daughter thinks will cause dresses to appear at her front door. we are a little ways away from that. my parenting style and emerging style is very popular and giving children exposure to things that are supervised and safe so they do develop good habits and what happens when the kids are not exposed to it and later on they get access to it, they don't have the tools to manage their own emotional state and engaging with the tool. my personal belief as a parent, it's good to be able to be in the supervising environment where you can establish good

habits. emily: take me ahead to 10e years. do we all have phones and glasses, too and a wristband? >> 10 years is right on the borderline. >> 15, 20. >> i think you don't have a phone anymore necessarily but may have a device that you carry with you that that does multiple jobs. you will have sensors on your wrist that are convenient. and things like these air pods if you want to get more immersed in audio as well as a.r. glasses and what is different is our homes and the way they are laid out when you don't have to put tv's in a specific location and can work from anywhere and cities will be laid out differently. virtually reality takes off and why would i fight an hour

traffic to get to my office where they are paying rent to keep it empty all night and i'm paying rent to you keep it empty all day and get good eye contact, why would i do that and i could have those rich experiences and you know who is going to benefit from those two hours not in the car, my kids. the real connection. i think we have the opportunity to change about how we think about cities. and those have to be together in many cases because that is the value of face-to-face communication. that is a big opportunity. emily: vice president of facebook reality labs. catch more of that interview. one year into the pandemic and

looking at the soaring online for soaring apps. ♪

>> and take time out of my days to take care of my own health and well-being. emily: no secret that the pandemic has taken a toll on businesses, careers and livelihoods and with that many agrees more has to be done. a recent study by a health care company, 96% of c.e.o.'s think they are doing enough but 69% of employees agree and the report says 48% of employees have experienced significant or stream stress in the last year and the company seeing 270% increase for coaching support and increase in demand for therapy. joining me to discuss the c.e.o. of beginningier, russell glass in part of our thank you for

joining us. you did a lot of research. what are the most shocking trends that you have seen? >> thanks for having me. this is the third year we have done this study and one of the trends that is astonishing is how each year, we see more and more of the population that has a need and the pandemic has seen that. we are seeing more than 40% of adults have some sort of depression or anxiety and 60% of thosend 25 are presented with these needs and staggering population have these needs right now. emily: you just raised a lot of money and working with blackstone a billion dollar evaluation and what is the future of mental health and how does it differ from a

psychiatrist or therapist that people have had for access for years. >> we raised the money from blackstone because we recognized that there was this increasing need. we don't have anywhere near the number of providers to take care of all of these people and as we looked at the cost of society, the estimates are that it costs a trillion a year to manage the mental health issues that we have. we recognize this may be the single largest societal issue of our time and we wanted to invest in the solutions needed to solve this problem. and ginger's focus is how do we take technology and research and development and how do we create new care models and payment models and finally, how do we scale the amount of care we can

deliver to these for our economy. emily: we are in this messy middle period, what are your concerns about employees and employers between governments, schools and students? >> there is some good news, if you look at the results, what we are seeing, this period has increased the understanding, so, you know, huge numbers, like 92% of c.e.o.'s that companies have increased on mental health and 94% of c.e.o.'s that they received mental health support themselves but as you said earlier, there is still a gap between the perception of what companies are delivering and what employees are feeling on the ground. so i worry about that.

i worry that companies think they are doing enough, but then they are not actually, because employees aren't seeing it. and will take companies not only in providing solutions but providing communications, talking to their employees and making sure that it's ok to reach out and get help and reduce that stigma. emily: russell glass, c.e.o. of ginger. thank you for talking about this important topic. u.s. sees signs that the fourth wave of covid is under way and testing levels. we will speak to the c.e.o. and home testing kits and while testing is so important. as we head to break, chips in focus with the stocks down 1.5%.

keep your eye on the space and supply shortages appear to be worsening. not good news. this is bloomberg. ♪

[indiscernible] >> we have so much tore look forward to. so much promise and potential of where we are and so much reason for hope. emily: that was ahead of the c.d.c. fighting back tears warning of impending dooms and hospitalizations and deaths begin to rise. the suspected cases of covid-19 are up in half of the united states and face the focus on

vaccine and the provider of home testing kits which made the first two acquisitions and julia, thank you for joining us, what is your reaction to what the head of the c.d.c. just said there? >> this is a really critical moment for the u.s. to be able to combine the vaccinations with continued testing and behaviors we have adopted over the last year. we have so much ahead. we have the promise of a new dawn, but being able to stay safe during this vaccine acceleration and testing has stagnated because people aren't going to get testing as often or as frequently. most people can get tested within a day or a couple of days and and so another voice of caution to say if we stay the

course for another few months, we have a bright future ahead. emily: talk about the demand you have seen. you were one of the first companies to do home testing kits. many people took advantage of that and now behaviors are changing. >> yeah. absolutely. we were in a position to innovate quickly and serve on a national scale and companies followed suit and ramped up testing after the initial slowness. we are seeing employer demand and a lot of university demand and state demands but individuals aren't going to get tested as often because there is pandemic fatigue which is understandable. but what we are seeing across the board and you hear it from testing rates, is the testing rates are klining and people are

quarantining and exhibiting those behaviors, that's ok but as you can see the last seven days, that is not what is happening across the board. doordash and timber and at-home testing going mainstream, it is challenging to have this combination of vaccines and testing to maintain the pandemic. emily: talk about this future of the category at at-home testing and telehealth. what does this look like post-pandemic? we have a minute left. >> this has been in testing for five years and and at-home testing that supports payers and medicare plans and we created $300 billion in telehealth space and see a bright future in

supporting our 400 clients, major labs and health plans moving forward. health care including diagnose no, sir particulars is a waterhead moment post-pandemic and we are leading the way. and there is a bright future as people demand better services coming out of the pandemic. that is the silver lining for sure. emily: thank you, jewela and for reminding us how important it is to test especially at this critical time. and that does it for this edition of ""bloomberg technology." i will talk about the continuing supply shortage that has devastating impacts. stay tuned for "bloomberg daybreak" australi i'm emily chang.

this is bloomberg. ♪

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