>> from the heart of where innovation, money, and power collide. this is bloomberg technology with emily chang. ♪ emily: i am emily chang incident sysco. coming up in the next hour, tim cook takes the stand in the climax of the apple epic trial. the ceo testifying for over

three hours, facing pointed questions by epic attorneys. i was at the courthouse. we will bring you expert opinion on how well apple fared. plus, it coin slides again after china reiterates it will control4 -- crack down on mining. a digital first brand kept growing. with masks coming off, it is all about lipstick. i will talk to the ceo about a beauty boom starting now. we will get to all of that. first, we are awaiting a news conference from president biden and the south korean president. they have been talking about the global chip shortage and other issues. we are going to bring that to

you live. in the meantime, i want to take a look at the markets. crypto, another wild week. ed: a lot of volatility and risk assets. you can see the s&p 500, basically flat. slightly negative territory. we have been down for four days and had a rally thursday. really, volatility is the key word. the big story, as you say, bitcoin. all about comments out of china. china saying it is going to crack down on bitcoin mining and trading to prevent risks to the financial system. this is the story. volatility, price steps in one direction or another. this is a two-week chart. we are down almost 40% over the course of two weeks.

but is not a good time for the cryptocurrency. two stories i know you are going to tie about in the show. apple, down 1.5%. tim cook testifying. tesla down 1%. this was the fifth consecutive weekly decline for tesla. that is the worst run of weekly declines since march, 2018. whatever you say about elon musk, the number of cars, the fact of the matter is tesla stock is not in a good run right now. when it comes to apple, there was no real conviction moving one direction or another. some good days, some down days. the end of the week, there was this drop in apple share price. we know what is at stake. i know you will talk about it in the rest of the show. emily: meantime, as i mentioned,

a tense three hours for tim cook. the most high-profile witness in the showdown between apple and epic games. i was at the courthouse. the apple ceo arriving and then leaving. he waved to us, the press, outside. epic games ceo tim sweeney had been at the trial representing the game maker. the stakes for both companies are high. epic trying to prove apple is a monopoly with respect to the app store. apple working to defend itself. in the face of broader regulatory issues. listing -- listening to the testimony, epic's lawyers caught him contradicting himself. the judge was mostly quiet until she piped up with some pointed

questions. how would you wrap up the day? >> everything seemed smooth and positive until the last 15 minutes. if i am apple, i did not like what i heard at the end. she through doubts over apple's rationale for lowering the cuts. calling it a move to help small businesses during covid. i think most people knew this was in reaction to regulatory scrutiny. the judge sort of cold out tim cook for that. she said, you guys don't have any competition when it comes to in app purchases. obviously, that is true. they are the only game in town when it comes to that. she did not ask about the idea of third-party app stories. i think her focus is on that in

app purchase system. if you remember, these were the two main points of issue epic was asking about. i would bet her attention is going to be about some sort of resolution with regard to an app purchase. for example, you could be able to buy directly from epic in fortnite. the other resolution, which i think is far more likely, you will be able to as a developer tell people you can go to our website to finish this transaction. emily: there are multiple scenarios, multiple decisions. apple winning, in which case nothing changes. epic winning, and which case nothing changes. the most likely outcome is a

mixed decision in which case everyone appeals. what is the case that apple loses something. >> that is how most investors view this. this is a game of high-stakes poker. it speaks to some of the broader antitrust rules we are going to see. ultimately, they have been able to defend themselves pretty strongly. even though this is obviously a key test in terms of the app store, the crown jewel of the service, we believe there could be some collateral damage. ultimately, pretty contained relative to the app store. emily: epic lawyers spend quite a bit of time trying to pin cook

down on the profitability. apple has maintained they do not know exactly how profitable it is. which sums to -- -- some skeptics have found hard to believe. experts believe it rot in $22 billion -- brought in $22 billion to redo believe they don't know how profitable it is? flex they are keeping their playbook closed to the rest -- >> they are keeping their playbook close to the vest. right now, it is under attack. if you look at how they are defending themselves in court, facing some tough questioning. they have not deviated from how they have offended themselves from a antitrust perspective. more profitable than a lot of fortune 500 companies if you look at that services business.

if you look at the way they are navigate investors like what they see. although clearly risk, as we get into a decision. emily: the reason this profitability question is important is epic is trying to prove the app store is lucrative, which would be a sign of monopoly behavior. talk to us about how tim cook performed and responded across the board. there were a range of issues that came up. in terms of the competitiveness of the operating system, how icloud works in china, which seemed a little off topic. as well as the security of iphones. >> i heard a lot of i don't know, or ask phil about this. i heard a lot of him passing the

buck. the question is does tim cook actually not know the answers or was he trained not to answer them if they get to difficult or too in the weeds. that was one of the interesting things to me. i want to talk about the possibility thing you talked about. i don't believe apple on that. i think they are splitting hairs. there is the core profitability. they are saying they are not able to calculate all the extra stuff. they are trying to say it is an all in one ecosystem. can you factor in the cost of the iphone. i think, obviously, apple is simply saying it goes a lot further. it is interesting apple has been basically shooting down internal

documents that were collected in the discovery process. if i'm the judge, i don't buy this. the question is how relevant is a lot of this? they are asking apple about icloud in china. they have done a lot of portraying apple as the big, bad wolf. full of inconsistent testimony. a lot of that does not go to the core of the issue. epic not do a good job proving why there should be third party app stores. apple did a good job proving why they should be. epic didn't do a good job proving why apple should not be the only offer in town. apple did not a good job proving why they should be. emily: apple and tim cook doubled down on the idea it is about users, privacy, security. apple says it puts the user at

the center of everything. it is not about the money. i believe that was word for word. how much do you think the regulatory risk, in this case or beyond, is an overhang here? how concerned are you apple could be facing more scrutiny down the road regardless of what happens here? >> it speaks to why every regulator is watching this so carefully. everything he said will ultimately reverberate. we are seeing across the board, apple, amazon. apple recognizes the app store, the 30% fee, that is the game. even if apple wins with flying colors, they are going to

continue to battle this for years to come. it is a 10-12% overhang on the stock right now. emily: as far as we understand it, monday will be closing arguments. and then the judge will take anywhere from 1-4 months to come out with her decision. we do know she has a criminal trial coming after this. thank you both. we are going to talk about bitcoin, coming up next. bitcoin resuming it selloff after china reiterating it intends to crack down on crypto mining. the wild week ahead.

>> crypto mining arctic circle. bitcoin has had ups and downs over the years. one thing has stayed the same. without miners, there would be no bitcoin. mining bitcoin is not like gold. let's rewind to 2008, when there was a white paper published for the beginning of all

cryptocurrencies. it explains how electricity and cpu time is spent to solve the problem. it ceased to solve the problem of trust in a digital era. to do so, it relies on a concept called proof of work. like old-fashioned gold miners, these cpus have to hunt for a hash to write the next block in the blockchain and then get rewarded from a bitcoin from a pool that is designed to never contain more than 21 million. and the early days, anyone could mine bitcoin. all you needed to install some software on your home pc and off it went. early adopters saw it more as a computer game. to mine bitcoin requires specialized equipment and a lot

of electricity. because the rate of production of bitcoin is fixed, this epo power is not. the variable that keeps it in balance is the difficulty of mining. as more people compete for each new bitcoin, the difficulty is increased. that creates one of two routes to mining. they can join conglomerates for mining pools that work together to solve the puzzle. or they can set up server farms. such server farms have two problems. first, they need a lot of cheap electricity. that has pushed some to set up shop near hydroelectric facilities. the cheapest and one of the cleanest forms of electricity. second, all those computers need cooling. in the siberian city of -- be in the polar circle, and only reachable by plane or boat, a

mining farm has made its mark. outside of a stalin era nickel plant. the facility still needs ventilation to be cool. they expect to mine up to six bitcoins a day. all of this for a collection of ones and zeros that fetch more than $50,000 a go. follow us on your favorite platform. emily: sticking with bitcoin, the selloff resuming after china reiterated a warning it will crackdown on crypto mining to

control financial risk. what is your take on this? knowing tesla has a massive if controversial bitcoin investment. we are seeing more institutional players buy in. >> it started with the musk. turning bitcoin into crypto, the gut punch. we are seeing worries all come in. it has been a night mare scenario. it is almost a sideshow that has started to overshadow the story. i believe bitcoin and crypto is something that will be coming for years to come. it is going through a clear metamorphosis. it all got kicked off with elon's comments.

emily: do you think tesla will sell some of its bitcoin investment? do you think it intends to hold? at this point, they are saying they are holding. whether or not tesla does that, is that a big, unpredictable factor? >> they have put themselves into such a quagmire. they had about one $.2 billion at one point. that has been wiped out. you can ultimately get losses. which speaks to the broader worry of investors. it starts becoming overhang. i do believe they will be forced to sell more and more portions of this. giving you a dynamic of what musk has said. emily: would you prefer musk to

stop tweeting about this? >> it is not champagne and roses. if you look at this market, patience is wearing thin. right now, look at those china numbers in april. investors want to see what ultimately happens in electric vehicles. and not have the sideshow overshadow the story. as an analyst, even though i understand the crypto story, it is painted a bit the tesla story. emily: in your view, should tesla hold on to its bitcoin? or should it get out of crypto

and spect oh -- speculative investing altogether? >> musk believes encrypt no and there will be continued investments over time. from a transaction perspective, many investors would like to see them pair it down. given what we have seen from musk in the transactions. that is going to be the big focus going forward. as we get into the quarter going forward, it has created i think a frustration point. not just for crypto investors but tesla investors. that piece did a great job explaining the environmental issues. that did not change in three months. emily: love your metaphor, the nightmare on elm street.

happy friday. coming up, in an effort to continue pushing vaccines, the biden administration is teaming up with dating apps. how vaccination could get you premium service with tinder or bumble.

emily: the white house teaming up with dating apps to encourage americans to get vaccinated. nine of the largest apps are adding a badge to show vaccination status. they are also adding perks. and coming up, to cutting our own here to other grooming tasks, the pandemic has changed

dating -- consumer behavior. we will hear from emily weiss next over how the company managed to grow and what products have been trending.

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emily: welcome back to "bloomberg technology." when the pandemic it began, the global beauty industry was hit hard. some wondered if we would ever wear makeup again. sales slumped in the first few months. the study also estimated consumer spending on makeup products would fall over 30%. but, digital first beauty brand glossy a -- glossier kept

growing despite shutting down their flagship store in new york. i caught up with weiss at the bloomberg beauty conference and asked how she navigated the pandemic. >> i can remember the moment when the writing was on the wall the world was about to change. it was thursday, march 12. when our creative director took a photo of the lined outside of our headquarters -- sorry, flagship store. as normal in a day, we would see 2000 visitors into the store and have a line down the street. she took a photo. and said, we have to close these doors. no one had closed the retail stores. this is not safe for people in the store and people coming into the store. the party has to stop for a time.

that was the beginning of the pivot back to online where gl ossier was born. we doubled down on that. and grew really well, year over year, despite beauty really shrinking last year. beauty as a category shrinking. emily: talk to us about how the business shifted. there were people who did not know they would need makeup. then i realized -- than they realized everyone is staring at me all day long on zoom. tell us about the shift you saw in the business. >> we have always believed quarantine, covid, no covid, we have taken a long-term approach. if you can inspire women and people to feel joy and

confidence in their routine, you are going to help them sit up a little taller. over the course of this last year, makeup was down something like 30% as a category. the reason glossier's makeup grew is because we have taken a people first approach. freshfaced, loving the skin you are in. products that are intuitive and easy to use. these are products that meet you where you need to be met. we don't take this expert precious approach to beauty. that has been really appealing since 2014. it was never more appealing to people in a year like 2020. emily: are there any products in

particular that dropped off. i imagine people needed more i cream and less makeup. >> skin cure -- care was he skin care through social. it was not just in beauty, a pivot to e-commerce. mckinsey is saying it is probably going to sit around 35% e-commerce. massive acceleration online. if you think about where people are learning about how to make decisions on what products to use, it has evolved a lot. last year, the year of tiktok, a

form of entertainment. glossier is the seventh most tagged brand on tiktok. was it -- what is exciting is we have always believed in the power of the individual to help other people learn about their routines. we are past the era, consumers are past the era of beauty counter experts. a new generation looking at who is going to influence me. emily: there is a whole new beauty conversation happening in social media, places like tiktok. videos of people showing their routines close up. how is that driving or influencing your strategy as a brand? >> stemming from this belief in

personal routines, this belief that every single consumer -- we have 5 million plus customers from all over the world -- every consumer deserves to be informed, able to share and curate their own medicine cabinet. that has always been our aim and invasion. back in 2014 and we launched on instagram, acklin we did that, it was shocking to big beauty that glossier was showing their products next to other brands. the consumer is already shopping that way. i don't have a medicine can that -- cabinet of only one brand. that is a thing of the past. it is interesting that glos sier has taken this total routine approach. how do we with this -- help them

with discovery? we have been able to take this people first approach throughout the pandemic. merchandising across all categories. we are in a unique position we were not in. we have well over 50 products. there is something for everyone within the glossier portfolio. you can find skincare, fragrance, body products. these are four of the 10 largest categories in the industry. we are excited to create unique customer experiences. taking people to the world of glossier and their whole routines. emily: there is talk of a beauty boom now that the world is going back to normal.

you expect to see a beauty boom? >> they definitely are saying the roaring 20's. coming out of this for us, the last seven years have been practice for what we are going to do next. that is to continue to iterate on this mission of helping people form their routines. the consumer is definitely online. they have all of these choices about who to follow. how do we create those spaces, those experiences? whether physically through our retail stores? digitally through things that are very exciting we are building? that i cannot talk about yet? consumers are coming out of this more knowledgeable than ever. more values driven than ever.

we have seen that shift as well. emily: glossier ceo and founder emily weiss. now to the streaming wars. the man who launched disney plus and former ceo of tiktok is turning his attention to sports. kevin meyer joined us at the bloomberg businessweek conference to talk about the future of the increasingly crowded streaming market and whether he expects more consolidation. our conversation was recorded and now it will merge with the spinoff of media assets. >> if you are talking about who is going to dominate, have a dominant position and global deployment of their service, certainly amazon prime and apple tv plus, i think there are only a handful of truly global

subscriber based type of services that can exist. that doesn't have to define success. success, both financial and for consumers, can happen in a much more mitch base. -- niche base. there are a multiplicity of those that will exist over time. some will serve certain audience segments. sports, unscripted. dramas focusing on female audiences. you will see a lot of niches survive and thrive. emily: all the services you just mentioned, do all those count and what you see the future of global services? some not hit those milestones? >> hard to say. i think the economics all four

3-4 services. one or two of them might not quite make it. clearly, three of them have already done so. there is netflix and there is disney plus. paramount plus, we will see. emily: disney just had a big subscriber -- in disney plus. do you see these as sort of small blips in the road or are you long-term bullish? >> there are 104 million subscribers after 18 months, that is pretty good. that is a big number. i think they are very smart and responsible.

they say they are on track to hit it, i believe them. emily: you believe there are smaller services that can survive and make a lot of money. do you see services out there that are not going to survive at all? clearly there are dozens of options that are trying to hit these big milestones or even medium milestones. it seems like too much. >> there are, i don't know, hundreds of different services. not all of them will end up surviving. i think there will be tears. -- tiers. in the top global tier, they will be three to four. there will be tens, 10-50,000,000 subscriber base. you might have some that are really small and very niche. we are not going to have the hundreds and hundreds to be

there is always a shakeout, a goldrush mentality. it is great to serve consumers. diversity in programming choices is a good thing but they are not all going to survive. emily: how much is about the distribution and the platform model? how much is truly about the content? i had a guest who said content is the new oil? >> that is good. as much as i love the interface of disney plus, i worked long and hard aching the interface and the app beautiful. emphasizing the brands disney has. trying to elevate the interface and the technology in the pricing, frankly, to be very important. at the end of the day, people subscribe for the content. the best thing you can do as an interface is to get people to the content they want and then

get out of the way. it is all about content, ultimately. emily: part of my interview with kevin meyer. -- mayer. you can catch the full interview with that. coming up, did the pandemic really drive the migration of americans from cities into suburbs? moves that might've happened over years? we will have more details next. this is bloomberg. ♪

emily: a year into the covid-19 pandemic, about much speculation about remote work, a clearer picture is emerging about how people moved. there is no urban exodus, so to speak. more of an urban shuffle. i want to bring in sarah holder. kidding the first concrete data of what has happened. what picture does that data paint? >> an analysis of usps moving data and change of moving address by myself and a partner found a lot of temporary moves were recorded. most of them, 84%, were recorded within this same metro area. people were moving they were not

moving very far. -- but they were not moving very far. emily: where are they moving exactly? >> there is a lot of talk about how people are moving out of new york into miami, austin, l.a.. what is more interesting is to look at some of the metro level migration patterns. the san francisco bay area, a lot of folks were moving to l.a. but also to places like stockton and sacramento, where housing prices are lower. folks can -- who can suddenly work remotely can afford to buy a house. in new york, it is a similar picture. a lot of people moving to the suburbs and to places even in connecticut. some trends we saw even before the pandemic accelerated. there was more outmigration from cities than in migration. more in migration into suburbs than outmigration.

that's is why you might be seeing those trends but they are not entirely new, they are accelerations of what we have seen before. emily: what does this migration or shuffling mean for the cities these folks are leaving like san francisco, like new york? for housing markets, for rental markets? >> in new york, you are seeing rents plummeting. the values of some buildings plummeting as well. in san francisco, public transit is much emptier than it was before. some of that might have to do with remote work trends in general. what is interesting is what it means for other cities, even as people are fleeing san francisco and new york, they are buying up homes for cash and these outer markets. it is switching these dynamics a little bit. there was a lot of concern about

what it could mean for the tax base, but experts say we have not seen the kind of dents to the tax base you might have worried about. emily: appreciate that. such a fascinating story. thank you so much. how social media companies are using augmented reality to help consumers -- reach home bound consumers. more on that next. ♪

emily: as the pandemic left brick and mortar stores empty,

retail stores begin pivoting to a new reality. and augmented reality, if you will. social media platforms like snapchat were here to help. here to talk about the new ar powered experiences is naomi makes. -- nix. talk about how this pandemic has changed digital advertising and the shopping experience. >> just like you said, we have seen retailers were forced to pivot to reach their customer base. a lot of them transitioned their average portfolios to social media. revenues grew more than 16%. they were also experimenting with new ways to advertise. we saw more retailers trying out experiences in augmented reality. potential shoppers could

essentially digitally try on clothes or make or accessories. we saw new lenses and potential game a fight -- gamified experiences. emily: talk about how social media companies are competing. chasing these new experiences. facebook as well, working on commerce innovations. so is tiktok. is there any company that is doing it better than everybody else? >> snap has definitely been earlier in the game, particularly with augmented reality in general. that is how they made a name for themselves. we are seeing other companies

into the market and compete aggressively. i think one potential issue that is looming for this market is the hardware devices. a number of companies are experimenting with their own glasses, headsets. we can expect as the technology continues to advance. in the advertising space. snap definitely was a front runner in the beginning. it has had some formidable competition. emily: where the market? -- where is the market headed? >> i think we should see more robust deployment of advertising using augmented reality. imagine using your phone in a department store, and the

product you are looking at has a qr code that offers you enhanced storytelling about that brand. you will be able to go to disney world and use snapchat ar lenses to put a cartoon character in your photos from that trip. we should expect to see more creative use cases in the physical world. emily: naomi nix, thank you so much for your insight and analysis. resident biden and south korean president moon have just started a press conference at the white house. they have been talking about the global chip shortage. now they are making some remarks after those conversations. they have been talking about how they can cooperate to tackle some of these crises. you can check this out in the terminal at live go.

that does it for this edition of bloomberg technology. i am emily chang. we will see you back here on monday. ♪

david: a mega media deal, a cryptocurrency cash, and adjusting to a world without covid restrictions, leaving investors to sort the signal from the noise. this is "wall street week," i am david westin. this week, dr. anthony found she and the imf head on of the risks we face if we don't vaccinate everyone, and i mean everyone. dr. fauci: we've taken a leadership role globally and i believe we can do that with covid-19. >> we are not going to see full economic recovery until we are out of the health crisis. david: ceos