carolyn: this is bloomberg technology. coming up this ever come of the chip crunch gets a white house hearing. president biden hosts semi conductor and automakers to smooth out supply chain issues. nvidia has its own plan to make server processors. we will have analysis across all things chips.

u.s. senator jon ossoff helped broker a deal between south korea innovation and lk energy. we will hear from the senator on that and more. sales toward a $100 million valuation as a codes public in this week. -- as it goes public this week. those stories in moment. when investors -- investors took a cautious tone monday as investors -- all-important eco-data. ed ludlow with the latest. at: almost like we were treading water. we get cpi data on tuesday. investors have half and i on the bond market. the s&p 500 the main gauge of equities basically flat. the nasdaq 100, the tech heavy index off by two tens of 1%.

no underperformance. bond yields not doing much. u.s. 10 year up less then a basis point. the real story is some conductors. the philadelphia semi conductor index down. the white house's message, one of reassurance. that he has bipartisan support to fix the issue. this was actually the story. nvidia coming into the cpu space. the biggest points mover on the s&p 500. up 5.62%. intel plummeting. get this chart because it tells the story of the day of what happened on monday. you can see the blue line as nvidia spikes. the s&p 500 follows. we lost a bit of steam and momentum. the philadelphia semi conductor index played with volatility for weeks and months now. we are still up 9% on a three month basis. the supply shortage good for

those chipmakers. there is a lot to work out and i know there is a man standing by to talk to you about that. caroline a great run through a couple of things he sets as up for talking about monday's virtual white house meeting with president biden. to address the shortage that has idled automakers worldwide, that spring in ian king who covers the chip industry. is there anything possible to fix this in the near term? >> i think even before, the answer is unfortunately no. it does not matter whether joe biden has given them a trillion dollars or instructions to get on it right now. realistically, it takes so long to actually make a chip and to put a new factor and a place. short-term there is no easy answer here.

i spoke to the ceo of intel. a major spake -- a major stakeholder in he was positive. everybody was wanting to work together. on the flipside, there was a little bit of disagreement. we need something right now. we need to be in front of the queue. we need to have priority. others on the call saying you do not. we need to take a more holistic view about this. there was a little debate. obviously the funding and corporate tax rate, that would seem to be at odds with what the chipmakers want as well. caroline: to be a fly on the wall. talk to us about the nature within the chip sector. we sell it on the full display today. nvidia grabbing more of intel space. what do you make of the move to cpus? >> nvidia is trying to downplay

this. they are saying it is very much at the high end of the market. the most difficult ai. the simple fact is that most of that work right now is done by intel chips. nvidia coming in at the expense of those who are already doing that work. that is primary intel who are getting away from that. caroline: that is why we saw the ramifications on intel stock. all things chips for us. thank you so much. you would not expect a company to actually think regulators after getting hit with a fine, much less a $2.8 billion fine. that is what goes on in china. alibaba doing just that, to thank the chinese government. shery ahn is with the story and a reminder. shery: you would not expect tech

companies any the u.s. to thank regulators for the record find that is what happened in china. alibaba coming out with a statement saying they're full of gratitude and respect, saying they would not have achieved that growth without sound government regulation and service. we actually saw alibaba after being hit with this record $2.8 billion fine surge in the new york session and hong kong as well. the best day since june 2017 in new york. a couple of things. bloomberg intelligence saying the record fine is a small price to end uncertainty. jeffries saying it is a starting point for alibaba. it is only 4% of 2019 revenue. 11% of free cash flow. you're talking about a company that has more than $250 billion in assets. raymond james saying they expect solid continued china e-commerce

growth. the valuation is still attractive. they maintain a strong buy rating. caroline: not changing inherent in early -- inherited lay there business model. ant financial is going to have to reorient itself. shery: a complete revamp of their business. they are staying with their core businesses. everything else is changing. more like a bank. we are talking about authorities asking them to eliminate unfair competition in payments. also increase oversight of consumer lending processes. not to mention they will be transformed into this financial holding company. they have to wrap up data productions as well. they will need to cut the value of their money market fund as well. they will return to their origin story. focusing on micro-payments and

convenience for users. regulators making it harder for ant group to exploit synergies. what sort of implications will this have further ipo? that has been the big question. the $35 million mega listing they had to scrap last year, bloomberg intelligence saying their valuation could drop 60% from the $280 billion that it was pegged at last year. caroline: it is mind boggling, the fall from valuation, the fall from grace for jack ma. this must have implications for other people running big businesses and even startups. how does it impact the rest of the landscape? shery: the alibaba ceo last night was saying this is not just about alibaba. this is about a global trend where you are going to see more

regulation. we actually had pressure for jd.com, for tencent. beijing also wants to create an entity to oversee internet data. not to mention they are going to start curbing market concentration in online payments. we have already seen it with ant group. tencent has been warned as well. we are watching those developments closely. caroline: you certainly well be when you take to the helm. you do not want to miss her programming. it will be plenty more on this story i am sure. two south korean ev battery makers ended their trade secret spat. saving thousands of jobs in the state of georgia.

the new controversial voting law. this is bloomberg. ♪

>> for our bloomberg tv and worldwide, we are joined by a special guest right now. there is a big drama being played out in the state of georgia about whether a major battery plant would come to pass or not. esther jon ossoff, the senator from georgia was brought in. he got the deal done and we are in -- we are delighted him -- delighted to welcome him.

i have to congratulate you. there was a lot of -- a lot at stake with this. give us a sense of how you got it done. resident biden asked you to intervene. >> thank you for having me. it was an extraordinary team effort. i want to commend the united states trade representative. her staff. she did an extraordinary job bringing this to a successful conclusion. i got involved because this is a matter of george's economic interests. 2600 skilled jobs at this innovation facility being built in commerce georgia. billions of dollars of investment in george's economy. this is a strategic investment because we are talking about electric vehicle battery technology. the united states needs a diversified supply chain so our auto manufacturers can access the technology so they have a choice of vendors and we don't

want to rely exclusively on imports to provide our automotive industry with this electric vehicle battery technology. there was a significant intellectual property dispute between sk and lg. the options that were apparent were for president biden to consider a veto of the ruling by the international trade commission. that veto would have allowed sk to continue construction of this plant in georgia but at the cost of the integrity of our intellectual property legal regime. i stepped in. the parties write an impasse. i urge them back to the table. got a negotiated settlement. lg has withdrawn its complaint. sk can continue with construction of its $2.6 billion facility and a commerce, georgia. 2600 georgians will be employed in skilled jobs producing electric vehicle battery technology. david: that is where the high

drama comes from. electric vehicles, which are terribly important. at the same time, protection of intellectual property is as well. these parties have been in dispute for some time. you were right up against the deadline about any imports from sk. sen. ossoff: that is right. the president had 60 days from the international trade commission's judgment to determine whether or not he was going to veto the ruling. that put the administration in the unenviable position of having to make a choice between the production of strategic technology in the united states, electric vehicle batteries, which are a vital part of our transition to a clean energy future, a geostrategic option, and on the other hand, potentially eroding confidence in the intellectual property law in the states. in order for industries to

undertake research and development, there needs to be confidence that intellectual property law in the united states is robust and enforced. that is why a settlement was a vital and necessary solution. the parties are no longer at odds. a payment has been made from sk to lg. the intellectual property law of regime is in tact and george is going to get these 2600 skilled jobs. david: can you give us some sense of how long this settlement will last for? sk is investing a lot of money. we would not want to have this dispute come up again. sen. ossoff: they would have faced two years in the case of production of one battery component or four years in the case of another before they had to shut this plan completely. now this dispute is behind us. the matter has been fully withdrawn. the parties are no longer fighting it out over the

intellectual property dispute. sk is continuing with its 2.6 billion dollar investment in georgia. i believe it is the largest investment made in the state of georgia for this plant that will employ so many people reducing technology vital to our clean energy transition. david: what took it over the top? sen. ossoff: a lot of hard work and relentless pressure on both companies to come to a deal. these are two south korean industrial titans. both of whom have invested many billions of dollars in electric vehicle battery technology. it took a lot of hard work by a lot of people. i went to again command the united states trade representative for her extraordinary contributions to the efforts to bring these companies to the table, settle the dispute, allow the matter to be put to rest with hours left on the clock. president biden called me saturday afternoon to confirm

the deal had been reached and construction of the facility in georgia could continue. david: this is not suggesting, but why did the president pick you? what in your background has prepared you to get this done? sen. ossoff: i don't think the president pick me up it i stepped in because george's jobs and economic growth were at stake. 2600 skilled jobs in and around commerce, georgia. this will be vital employment generating wealth, generating opportunity for northeast georgia and state for decades to come. this is going to attract other firms in the clean energy space to build and locate facilities in georgia and create more jobs. these supply chains that are becoming increasingly integrated. the fact we have electric vehicle production moving into georgia means that other firms involved in the electrical vehicle space and clean energy

space are going to come to georgia. i look forward to working with them to create more jobs in georgia. david: it was reported before hand that lg was insisting the deal totaled $3 billion. did it get what it wanted? sen. ossoff: the agreed settlement was a 1.8 billion dollar payment from sk to lg. the matter before the international trade commission has been resolved. as your viewers who have been involved in complex high-stakes negotiations no, living those numbers over time takes a lot of work, takes a lot of pressure. both parties need to understand their incentives are aligned so they need a deal and it takes a deadline. it was with the clock ticking. less than 24 hours to go until that plant might have been shuttered. we were able to get a favorable resolution, save the plan in commerce, georgia, end the

dispute and make a huge step forward for clean energy technology in the united states. david: congratulations. it seems like a wonderful deal for the state of georgia. thank you to senator jon ossoff of the state of georgia. he is of course a democrat. much more coming up on bloomberg television and radio. ♪

caroline: microsoft has agreed to buy nuance communications. that represents a 23% premium to

the closing price friday. microsoft has been working with nuance on software to capture doctor and patient discussions. why health ai? is it all about telehealth at the moment or what else is it nuance is going to bring to microsoft? >> there are a few angles here. microsoft cloud computing already worked with nuance behind-the-scenes to capture all this data doctors can collect from patients and medical records. microsoft will get a record from its clmputing platform. it is a new vertical for microsoft going after the health care space. this is a big bet and a new area. it is microsoft's first big deal in health care. we will see how it pans out. it is definitely a new application for microsoft and nuance also has older

technologies. it is sort of a bit on the future -- a bet on the future. with a company that has revenue and profit. it is a pretty interesting move. caroline: revenue and profits. talk to us more -- he said it is second to the debt he said it is second to the linked in deal. nothing in comparison to the company's cash. it can certainly afford it, but what does it speak to in terms of the overall m&a playbook? >> microsoft is a massive company. it takes a lot to move the needle. they have been attacking different areas in m&a. earlier this year, there were reports they were looking at a 50 lien dollar plus -- a 50 billion plus deal looking at pinterest.

they have a huge corporate dissolve material looking at all of microsoft's big areas whether it is our xbox or -- whether it is xbox or cloud computing to see what companies can fit in. it is true. $20 billion deal for microsoft is not that big but it is second-largest. caroline: it is also wonderful when you have a 23% premium coming your way. talk to us about nuance in general. they have been working behind the scenes. why now? nuance has been around for a wild. >> nuance is a company that has been transforming the past few years. in 2018, they got a new ceo. they had a bit of shareholder usher. they really needed to clean up a youth things. they have a separate publicly traded company. they sold a bit of the company to private equity. it is almost like they were preparing to slim down to be

more attractive to focus on a few key areas that were growing fast like their health transcription and artificial capabilities. they develop the technology that led to apple's siri products. they have been doing this for a well. caroline: thank you for bringing us that story. let's bring you some other tech stories we are covering. apple has been a laggard in the smart home space. a device could change that. bloomberg has learned the company is working on a product that would combine apple tv with a home speaker. coming up, we have to talk coinbase expected to go public this week. a valuation of $100 billion. what it means for the larger crypto space. stay with us. this is bloomberg. ♪

caroline: this is bloomberg technology. for a look at what happened in the markets, we are joined by ed ludlow. ed: i wanted to stay with london and talk about dark trade. the british cybersecurity firm announced it planned an ipo in london. it is the first big listing candidate since deliver room, which was not the most successful ipo. flip up the boards. could be valued between three to

$4 billion on the london listing. one of the criticisms was its dual class structure. not so with dark trade. they plan to do a single class structure. in the wake of solarwinds hack, the microsoft server hack, i thought this was interesting. an opportune time to plan a listing. they plan to sell 20% of the company's equity. it tells the story of what was the poster child and i know that is a cliche for london ipo's in 2021. seven days of trading. we are down 35% for delivero o. the dark trade ceo was at pains to say it is exciting for london we are going to do an ipo. it is one to watch going forward. what will the investor appetite

be for a firm that specializes in ai, that protects and prevents against cyberattacks? want to watch for you. caroline: always a pen up they have ceos -- female ceos and cfos. all eyes -- the global story of potential listings. in the u.s., it has its on its own big addition. all eyes on the crypto company that is coinbase to. went to bring in sonali basak in new york. the former senior advisor for bumble. we help -- we thank you for helping us bring you this interview. >> thank you for joining us. let's start with the math on coinbase because it is expected to have $100 billion in valuation as it goes public. does the valuation makes sense

relative to what it earns? we know it is profitable, but is it worth $100 billion? >> that is a lot of money. to put it in perspective, j pmc is worth 475 billion. 100 billion is a lot of money, especially when you look at the fact there assets under management are not superhigh. they have 43 million accounts but they only have about $2000 per customer on average compared to a schwab that has 9 trillion under management with 31.5 million accounts and almost 200%, over 200% more when it comes to assets under management per customer. this is a really big bet on a very nascent player. >> that is interesting because there is a chance this goes public. what does it mean for those

retail investors buying in >> is this -- buying in? is this the top? is there a risk it falls? >> there's always a risk it falls. the interesting thing is they make money when you buy or when you sell. as long as you believe there is going to be volatility in crypto and pretty much as long as it has been around, you can count on the volatility, coinbase can still make money. the bigger question longer-term is are they losing customers? are people getting out of crypto or is there a constant feed of new people who are interested in getting exposure, a.k.a. new customers? caroline: we thank you for joining us and for complete transparency, my husband is the senior manager at coinbase so i know a bit about the business from behind the scenes but i am interested in your perspective. what has been fascinating to watch from the public perspective is the rally we have seen in microstrategy going into

the crypto space. the desperation for investors to want to get into some public equity that is linked to crypto but perhaps do not have the risk tolerance for buying crib or the ability to. how do you think it will affect those sorts of companies and it is -- and is at the institutional buyer you expecting? >> i think we are going to see a lot of retail investors. this has been -- the past six months have been the dawn of this hyper online millennial generation z retail investor. we sell that with gamestop. we see that with robinhood. we see that with tesla. a lot of what is dries in -- what is driving up tesla's market shares is the belief in elon musk and a lot of that comes from his twitter followers. there is going to be in element of that. institutional investors were slow to come into crypto. now it seems that every day there is a major headline of a

major institution trying to figure out it's crib how exposure. -- it's crypto exposure. we have seen repeatedly companies like gemini try to bring forth etf's in the u.s. i think realistically we have to assume in the next 12 to 24 months we will see a u.s.-based crypto etf. in the meantime, coinbase is your opportunity to get the public market exposure to cryptocurrency. caroline: and maybe then thick and fast, we could see the likes of gemini and other companies rushing to the public market once it has been opened. your perspective on the competition? there is gemini. >> coinbase has a lot of accounts. they have a lot of retail investors. they have not leaned in nearly as much on his additional

investors, which is where other players like gemini have leaned in from the beginning. there is a question of, is coinbase just a crypto exchange or is it a trojan horse of one of the biggest neo-banks we have yet to see? time -- chime in 2020, they had 8 million customers. coinbase is much eager already. they are offering things like savings and earning interest on your savings even though it is not fdic insured. they are offering some credit and debit instruments. it could be that coinbase becomes the neo-bank for a slightly younger generation of retail investors and crypto becomes a service they offer and not the service. >> thinking about the future of coinbase, not just where it can expand in terms of different products, in terms of more

banking services, what is the likelihood, especially given the regulatory environment right now, it gets taken now and who can take out coinbase? >> almost no one can afford coinbase paid i don't have a next or 100 billion in my pocket. there are a couple players you have to consider. the jp mc's, could they afford it? probably. the $2 trillion elephant in the room always when you talk about technology is apple. we have seen apple with apple wallet, apple card, apple pay. they have increasingly gotten into the payment space. is it a bridge too far to say apple could wake up one day and say we want to own coinbase? i don't know. i think in this moment, all options are on the table and they are one of the very few globally that could afford it. caroline: let's talk about your own experience and how you are

going to be looking for the next disruptor that is going to come in coinbase's wake. i love going back through your twitter feed. back in march you tweeted out that in 2011 you were telling anyone you went on a tender date with tobiah bitcoin. you were saying -- went on a tinder date to buy bitcoin. are you looking at any fintech's that resemble coinbase? >> i think decentralized finance and i think blockchain for contract uses interesting. i think there is still a lot of room in the market for crypto to grow. the entire cryptocurrency market cap is only $2 trillion. that means it is lightly less valuable than apple. half of that is solely bitcoin. there is certainly room for a

stable coin. we are seeing the rise of nft and ethereum and the technology behind those. i don't think those markets go away. i don't think the collectors markets, which is largely the use of non-fungible tokens in things like art and selling your tweets, i don't that goes away overnight. i think crypto has for a long time been a particle and a search of a use case. up until now, it has been daytrading paired i think we are at the don of a more broad set of applications. caroline: in search of a use case. i love that turn of phrase. we watch and wait for the next headline number. absolutely great to have you with us. sonali basak, we thank you for bringing that interview to bear. one company helping others go green and why they say remote work be worse for the

environment. this is bloomberg. ♪

caroline: over the last year, millions of people shortened their commutes by transitioning to a digital workspace. turning their living rooms and offices. from ditching time and trafficked in the longer having to warm up the car on a cold morning. the climate impact these changes have had on the globe should have seen improvement. one company is saying it is more complicated than that. although companies around the world are doing a pledge to limit net carbon by 2040, it is households that may not --

compared climate change to the pandemic in his 2021 letter to ceo's saying i believe the pandemic has presented such an existential crisis, such a stark reminder of our fragility that it has driven us to confront the threat of climate change more forcefully. as part of our work shifting series, joining me for more is the watershed cofounder and president taylor francis who is making it easier for companies to ensure they are on the right climate track. talk to us about the calculator. what are the going to -- what is it going to help companies do? >> everyone is wrestling with this. what does work look like post-covid? we build software that helps companies d carbonized. we build software that helps companies think about the carbon impact of every business decision they make and return to work is no exception. a lot of people think remote

work is good for the planet and it is true that less time commuting means less emissions from transportation. we are publishing this calculator today to help companies think through the impact of different scenarios. it is more complicated than meets the eye. remote work is good but not if it comes at the expense of people moving to suburbs, buying bigger houses, buying bigger cars. that means the carbon impact of their own lifestyle, which may not show up on their company's carbon worksheet may actually increase. it is kind of a rare opportunity to reset how the workplace works and a rare opportunity to reduce emissions. caroline: how many companies are wanting to be presented with the. light chain reality? does it give -- with the supply chain reality? is there another reason fray -- reason from a climate change perspective? how many companies want to

understand if their employees have a gas guzzling car or a not very efficient home? >> a lot of companies are thinking about this. you mentioned larry fink, you mentioned blackrock. expectations company -- expectation is companies think about their impact broadly. also their customers and their vendors. the important thing here is all these different pieces are interdependent. the companies we work with are all thinking about the big picture. caroline: the big picture. you can help get to the big picture much faster than usual. talk to us about how some of the products are helping speed up the map. >> every company is wrestling with climate. it has become a business imperative as well as a planetary emergency. companies are finding climate is a data problem. your carbon footprint as a business lives in supply chain.

it lives in utility bills and purchase orders. we build software that helps a company upload a bunch of road data and turn that into a plan on how they can reduce emissions, how they can source from different suppliers. all that adds up to businesses able to get the net zero carbon faster as a part of the core way they do business. caroline: watershed and itself is moving pretty fast. he launched in february. -- you launched in february. as cofounders of the company you started, this is where you and your cofounders came from. talk to us about the momentum you have at the moment and where you hope to take watershed climate. >> we started watershed in 2019. we announced the company in february. we are excited about the customers we are working with.

we are working with shockoe of five, square, -- with shopify, square. all these companies have aggressive goals in every part of their business. we are trying to help them make climate not just something you can publish in a sustainability report pdf once a year but actually how they design products, ship products to customers. the momentum is pretty significant. i think it is amazing to see every company thinking about climate for the first time. that is going to be inescapable over the next decade. caroline: we thank you so much. really great to have some time with you. still ahead, an overview of the white house chip summit were president biden addressed a chip shortage. perspective from an industry analyst on biden's response.

this is bloomberg. ♪

caroline: more than a dozen ceos including alphabet, ford met with president biden virtually this monday. biden says there is bipartisan support to address the shortage. plenty more of action in the semiconductor space. the managing director of semi conductors is with us. an eventful day. you are writing in february about some of the meetings going on, the bipartisan nature. the fact the u.s. government was looking at these chokeholds. what are you seeing in terms of the bottlenecks and whether the u.s. can address any of it? >> the current shortage

situation, which is essentially getting worse. the other is a perceived overall reliance on asia, taiwan and that part of the world for semi conductor manufacturing. these issues are not really related to each other. even if we dole out a significant manufacturing capacity, we would still be having the same situation. this was driven around some of the dynamics around the pandemic. they don't really have that much to do with each other. on that note, there is not a -- anybody can do to address the shortages. accept that the shortage is sparking the conversation and creating bipartisan support for semi conductor menu factoring. i think that is the good thing. it is more of a one issue,

helping to stimulate demand for the other issue. caroline: why is it a good thing for the u.s. to bring it more domestically and europe is looking at doing the same. is it an efficient use of capital? >> i am biased. i work in this industry. i do think it is healthy. the industry has gotten extremely efficient at what it does. if you are disaggregating things, you will be less efficient. there are some perceived increased risks from having so much concentration. it is never quite that good to put all your eggs in one basket. we are reliant on areas like taiwan. that part of the world is getting geopolitically a little less robust. that is becoming perceived as increased strategic rest. the industry and the world may need to live with a little less

efficiency. that makes things a little more resilient. that is the discussion going on right now. caroline: a few competitors at the same virtual table today. we saw competition thick and fast. that was the news in the semiconductor space. nvidia getting in even more of intel turf. >> part of the reason the stocks reacted they did because i don't think expectations were that high. in terms of nvidia doing their own arm-based server chip, we know they have been working on this for a wild. at some point, people expected they would announce something. i didn't think they expected they would announce it today. they are pinning a tougher picture. intel, the stock has been strong recently with the new ceo.

the problem is it is well known the last couple of years there is not a whole lot he can do. 2023 and beyond, has gotten a little tougher as well. we don't know how well nvidia products will stack up. the competitive product -- caroline: more on his plate to a certain extent. nvidia, how are they doing it so much faster than people expected? >> i'm sorry. what was the question? caroline: how is nvidia managing to get these things out the door? >> they have been working on this for years.

they will be doing this chip whether or not the arm deal goes through. they have been working this for many years. they had one called project denver they had to shut down a while ago. they have had a number of iterations. it has been years in the making. i think people were not expecting an announcement. it is not like it is something they threw together. caroline: ok. investors certainly liked the early headlines. >> they also talk to numbers in the quarter. things look pretty good for them. caroline: always nice when you get a little bit of a quarterly update. fantastic to get air voice on these things. -- to get your voice on these things. such interesting takes you get the research from him. that does it for this edition of bloomberg technology. tomorrow, i will be joined by marsha blackburn of tennessee.

we will also be joined by gary tan. we continued to preview wednesday's coinbase listing. stay happy and healthy. this is bloomberg. ♪

haidi: good morning and welcome to daybreak australia. we are coming down to asia's major market open. shery: good evening from bloomberg's world headquarters in new york. haidi: the zero top stories this hour. a bloomberg scooper reveals the u.s. will hold off on naming china as the currency manipulator. it allows the biden administration to sidestep a fresh clash with beijing.