announcer: this is "bloomberg technology" with emily chang. ♪ emily: i am emily chang in san francisco. this is "bloomberg technology." president biden chose cleveland to deliver a speech on the economy and his $1.9 trillion

plan. for more on what that plan entails for our audiences, welcome to the u.s. commerce secretary p thank you for joining us. president biden said -- secretary. thank you for joining us. president biden said we need to invest more in education and infrastructure to stay competitive. what are the musts that you believe need to be included? >> thank you. this is rebuilding for the future. the rescue package is working. it is pulling us out of the pandemic, creating 500,000 jobs a month. we need to invest for the future, childcare, 2 million women have dropped out of the workforce. we have to make sure every american has access to

broadband. it is not acceptable we have millions without access to broadband. we need to invest in job training, apprenticeships, so people can have the skills they need. we need to invest in manufacturing, so we make critical goods in america again, so it is not enough to pull ourselves out of the pandemic. it is time to rebuild our infrastructure for the future so americans can compete and our children have a chance. emily: and yet, the counter offered does not seem higher than the original. where is the progress and how long is it worth to continue negotiations? sec. raimondo: yes. we have to give them credit. i have been involved in these discussions and negotiations.

they are operating in good faith. they came back with a higher number. it is progress. if i said a few months ago that republicans would be coming back to the president with a $1 trillion counteroffer, you might not have believed it. we are still at the table. we are trying. it is not enough. they are not clear how they propose to pay for it. the president said we are crystal clear. we will not tax or burden middle-class americans. our job is to stay at the table and to find some common ground, so we will continue to do that. emily: the president talked about how the administration is combating supply issues, issues with computer chips, and america cannot innovate without chips. you just held a summit with those companies that supply and need chips, google, amazon, carmakers.

what is the next step? sec. raimondo: right now, the piece of legislation which would fund it is on the senate floor. i was talking with senators before i came over here, and there is a sense of optimism this will get across the finish line as early as day or tonight to fund that, which would come to the department of commerce. it still has to get through the house, but at this point, there is broad bipartisan recognition that we can't afford not to do this. think about your own life. everything you do relies on chips, your phone, appliances, computer, car, ai, so we

have to get it done and i believe we will get it done. emily: are you getting what you need from the industry on that front? sec. raimondo: yes. thank you. i convene 35 ceos last week, leaders in the semiconductor industry. they have been very collaborative and leaning in to find a solution to this problem. it is an economic security problem, national security problem. i have to say thank you to everyone we have been engaged with. they have been great partners. this will require public-private partnership. we can't fix it alone. the private sector needs to be there. i think they will be there. emily: gm is restarting production at several plants that have been idled due to the chip shortage.

meanwhile, rising cases in taiwan. could that impact supply, and will be u.s. do anything to help? sec. raimondo: you put your finger on a very important problem, which is we are heavily dependent on a company based in taiwan for a high percentage of semiconductors, which is exactly why we need to make semiconductors in america. it would be our plan to build another six or seven manufacturing operations in america over time so that we won't be so vulnerable to relying on one company or country overly. emily: so, speaking of countries, obviously improving supply chains improves competitiveness. the administration has been reviewing its approach to china.

when will we hear more about the findings in the strategy? sec. raimondo: this is an ongoing process, more than a process with a particular big announcement or deadline. we are doing it now. semiconductors is core to our strategy. we need to invest in america. the present style plan is about competing with china, improving infrastructure, investing in manufacturing. the way to compete with china is to run faster and invest in america. in terms of defense, we have not slowed down. we have continued to add chinese companies to the entities list. we have subpoenaed a number of chinese companies to extract information from them and do what we need to do to protect american industry. emily: the colonial pipeline

hack has raised awareness about the vulnerability of our infrastructure to cyberattacks. what is the biggest risk for businesses and what does your budget due to address this? sec. raimondo: yes. unfortunately, this is a large and growing risk to u.s. businesses. i think colonial was a wake-up call to all american businesses that they need to do more. i think particularly smaller businesses, for whom it is difficult, need to invest more. we are investing heavily at the commerce department in showing up her own cybersecurity, as well as researching cyber and cyber technology so we can continue to make ourselves more secure. emily: now, the president today emphasize how the administration is working to protect small

businesses from anticompetitive forces. the u.s. has concerns about big u.s. tech companies and their powers. europe has expressed those concerns. would big tech regulation be on the agenda for the g7? sec. raimondo: that is a better question for the treasury or others. for my part, i would say we are heavily engaged with the eu in discussions around privacy, privacy protection, data, tech regulation, and our collaboration and partnership with europe is important for companies on both sides of the atlantic, so we are working. i am in constant contact with tech companies in america big and small to make sure their

interests are represented, but also with our counterparts in europe to make sure. we are allies. we have the same values. we believe in privacy. we believe in openness. we are working hard with the europeans to come to a common set of values so that we can continue to operate across the atlantic. emily: all right. on behalf of our bloomberg tv and radio audience, thank you so much. we appreciate you taking the time. all right, turning to how u.s. markets performed on the day. we want to get to our reporter in new york. walk us through what happened today. >> a mixed picture. some green on the screen when you're looking at the s&p 500, but the nasdaq was hit harder than the faang index. the notable outperfomer was the

meme stocks. amc hit a $10 billion valuation since the gain in january. may the retail bid is in the past now. not so much. this chart, that blueline is an index of those stocks, restricted stocks, gamestop, amc, etc. the bottom is the s&p 500. you can see the outperformance in the uptick more recently. talking about speculation and volatility, we have to talk about crypto. bitcoin on a-month basis, i want to show you that. since that big hit, it has started to trade sideways. not a huge move up or down, just hanging in there. we will wait to see if that

pattern continues. emily: all right, thank you so much. hanging in. coming up, all eyes on amazon. an antitrust case with this after washington, d.c. files something. we will talk about which attorney generals could be next. this is bloomberg. ♪

emily: the number of states looking into amazon is growing, as attorney generals work to build a case for antitrust violations. we have more on the mounting

state inquiries. we know washington, d.c. came out first. it was unusual not to have other states on board. what do we know now? >> yes, we are seeing more states joined the dog pile, massachusetts, pennsylvania, connecticut, all looking at amazon. i had no indication they are looking at different things. they may break up the investigation differently, but you figure amazon's practices affect consumers in all states equally. emily: i want to listen to part of our conversation with the washington, d.c. attorney general, where he talked about why they brought this case forward. take a listen. >> this is a d.c. case that d.c. attorneys and our counsel work on for over a year. we engaged with amazon the best

we could to establish a cooperative relationship together documents and analyze the case. at the end of the day, we felt like the case needed to be brought. emily: i asked the attorney general if he had heard from other attorneys general. it was the one question he did not want to get to, so he presumably heard from other states. do we know what states might be considering bringing action at this point? >> no, we have reported new york and california were collaborating with the federal trade commission, so there is definitely some collaboration is going on. what they would look at precisely is unclear. what i am hearing from folks involved in this that there is interest in amazon's algorithm on its marketplace, how amazon

decides what you see when you enter certain search terms, and is that algorithm unfair, is it in the best interest of the consumer or amazon than the shopper or merchant partners? emily: earlier this week, amazon said washington, d.c. had it exactly back. what are they saying now? -- backwards. what are they saying now? >> they say we are facing competition and not driving prices up, the same refrain. when you speak with merchants, and we have written about this, they say if i have a product on amazon i can sell less on another site, my own site, shopper fly, walmart, amazon will punish me for that. it will bury my product on its own site, and because amazon gets so much business, they can

offer lower prices on other sites to lure shoppers away from amazon. think about it getting a better deal in a low rent district on real estate compared to the premium shopping district. that is what is happening now. amazon has that premium digital online real estate, but does not want to let merchant partners offer better deals on other sites. that is at the heart of the issue. emily: the experts you are talking to, how concerned are they about big tech regulation? you spoke with one analyst who covers amazon. he thought that washington, d.c.'s case would go nowhere and there was not sufficient proof, and yet, we see other states potentially piling on. there has to be something. >> yes. they are learning more. a lot of states came into this cold. they have to learn what it is like to sell on amazon, which is completely different from the physical store.

all of the aspects involved in it and the tricks merchants use, it is a steep, steep learning curve, so the regulators are still figuring out how this thing works so they can figure out where the potential problems are, and that is where it is slow going. there are not a lot of people who understand it, so they are still in this learning phase. emily: all right. well, we will keep following, as will you. thank you so much. meantime, amazon has set the date for this year's prime day. the event will be held june 21 and june 22, as it tries to get its big summer sales back on schedule. last year, it was pushed to october because of the pandemic. coming up, get ready to switch to a new switch. nintendo's plans to upgrade the popular gaming console.

let's look at some tech results out now. salesforce, vmware, all reporting. salesforce projecting profit that would top estimates, suggesting customers are optimistic about emerging from the pandemic. another falling after the projection for cash flow fell short of estimates. vmware beat the street in the first quarter with revenue. this is bloomberg. ♪

emily: best buy thinks it can succeed where walmart has failed , by asking employees to deliver online orders to customers homes, helping the retailer cope with a surge in orders.

how will this work? >> yes. what best buy is doing is asking employees if they would like to instead of working the sales floor or restocking products, if they would like to grab a couple of online orders and take them to an employee's house on their own shift, so they would not have to do it off the clock, so to speak. they do it in a best buy vehicle , so the employee would not have to use his or her own car. this is one of many things best buy is experimenting with. all retailers are seeing a surge in e-commerce. best buy is up 144%, last year more than double, so they are grappling with how we handle this volume, and best buy like

other retailers send the online orders from its stores, so they have to give it to houses some way, so rather than using fedex or ups, best buy said why don't we have our own employees do it. emily: walmart tried to do this before. did it work? >> no, not at all. walmart announced this program in 2017, but it was different, certainly. first off, walmart was asking employees to drop the packages off on their way home after work . i don't think anybody likes to be bothered after work, especially a retail worker. they were also doing it in their own car, so there were concerns about liability, insurance, what happens if i get in a fender bender? so walmart quietly killed the program after less than a year. best buy looked at that and the

lessons learned and said, let's do it somewhat differently. emily: what is your sense of whether or not they can pull it off? >> they can probably do it in certain markets, certain employees might not mind doing it. what is interesting is they are not just delivering packages, they said today on an earnings call that was the employee shows up with the online order, they might encourage the customer to join their new membership program or do an in-home sales consultation and say maybe you could use a new refrigerator or maybe you could use a new home theater. so i don't see this going coast-to-coast or being huge, but it will work in certain markets and for certain employees. i think it is a good idea. emily: all right. thanks so much for that update. we will be following it. some other stories.

nintendo could be out with the new switch in time for the holidays. the japanese company plans to begin assembly of the upgraded device in the next few months. it will replace the current console and is expected to be price higher than the original. trade groups representing social media companies including twitter and facebook are suing florida over a new law governing political campaigning. the log due to come into effect july 1 would penalize social media companies to block political candidates from their platforms. the companies could face fines up to two under $50,000. lawmakers in louisiana and texas are debating similar bills. coming up, he saw four companies go public in 30 days last year. next, where he sees the future for e-commerce. this is bloomberg. ♪

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♪ emily: welcome back to bloomberg technology. . i am returning in san francisco. let's look at how the retail sector is doing. kriti gupta has more from new york. summer earnings out after the bell. kriti: we have to talk about the retail earnings. a little that fiscal stimulus money is hitting people's pockets and being spent and you are seeing it in the likes of costco and got. but don't let the share price fool you, they had some

good results. costco earnings bidding estimates, topline and bottom-line, they had a good quarter. the stock is not doing so well. this will not be indicative of what you saw. intraday trading was different. a lot of green on the screen, possibly anticipating some other good news. best buy and dollar general, both very strong. best buy in particular boosting their sales forecast after soaring revenue, and introducing plans for e-commerce delivery. this was something wilmot tried to do and wasn't able to. investors really like that. to the downside, dollar tree is sinking after costs were denting their bottom line. this will be key. when you have an earnings story that isn't as bright and rosie, investors don't react very well. given the environment of extra

cash in the system. we did have a story out today that google and shopify were partnering to take on amazon. we have a one-year chart. you can see google has been outperforming amazon and so has shopify. they are giving amazon another reason to question some of their e-commerce dominant. emily: all right, thank you so much our bloomberg markets reporter there. facebook has also been partnering up with shopify. more on e-commerce. the pandemic has fueled an e-commerce boom, with companies like shopify, wish and others. but how long will this pandemic-driven e-commerce boom last? we bring in our next guest, who currently has over $9 billion in assets under management, hans tung. how long do you see this

pandemic fueled momentum continuing? hans: most people attribute the growth of e-commerce in the u.s. to the pandemic. i think that's partially true. we are seeing a change of user behavior. most people used to shop on smartphones and pay on smartphones. and the ease of ordering and delivering and even returning is making it a lot easier for you not to leave the comfort of your home and get things quickly done, efficiently, and have things sent to you in a personalized fashion. what you see in the shopping apps, they are increasingly becoming personalized based on what you have done, purchased in the past and based on your interests. more and more, there is a way to shop via e-commerce that is as good if not better than shopping in store. post-pandemic, this commerce boom through smartphones will continue to rise. emily: is there a limit to it?

hans: you look at globally, the e-commerce -- rate is over 20% in some large countries. for example, china. we think there is not going to be a limit for a while, and the pie is getting bigger. whereas back in 2013 and 2014 when i first appeared on your show the debate was about walmart taking on amazon. therefore, amazon had issues. then it becomes ebay trying to compete and beat amazon. know you have facebook and google using shopify to take on amazon. all those efforts are missing the point that amazon has a unique advantage in e-commerce. to beat them, you have to become vertical lysed, which is why you

invest in poshmark and peloton. you have to invest in a different experience. emily: what is your outlook on these more niche e-commerce platforms? the stock has been struggling, in part, probably because of the continued power of amazon. hans: with companies that are still finding their way, a lot of the issues are sort of self-inflicted or more based on execution. when you see what etsy is doing, their stock price has gone up dramatically the last four years. you see that there is a way to compete against amazon. you see how wayfair have done, they have done extremely well. post-covid-19, in the process of doing so.

emily: the popularity of creators and nex-gen personalities is a huge development in the e-commerce market with all of these tiktok stars hawking products and un boxing. do you see this shifting the e-commerce landscape dramatically? hans: that created -- the creators economy is more of a buzz wide but it is doing well. the monthly active users on facebook is over 3 billion. youtube alone, 2 billion. on tiktok, over 600 million, not including china where it is up to 800 million monthly active users, all referencing some form of short form content. you look at the there there number of creators out there or people who think of them as influencers, 15 million, and the

number of full-time professionals who are influencers, the number is only 2 million. there is more room for people to come in and produce content. in terms of the modernization, we have seen all kinds of creative ways beyond just advertising revenue share, product placement, non-fungible token sales, tipping and sponsored content so there are more ways to monetize if you can produce people want. emily: you have had four ipo's. airbnb, affirm among them. do you see that trend continuing with portfolio companies taking that big leap? hans: more companies are thinking about their e-commerce strategy, and even more are thinking about their fintech strategy due to some of those transactions. that is why you see affirm

doing well. you don't have to pay 100%, you can do it over time. that is why peloton and affirm making investments and collaborating. the market for e-commerce gets bigger with innovations in fintech, that by now and pay later. you see what square has done with square capital, fusing fintech, e-commerce, and social. it is the best we have ever seen. that's why when you ask me where does it stop? for the near future for the immediate future, that pie is getting bigger and bigger. emily: let's talk about that pie. you are looking for a potential ipo. when should we be watching for that to happen? how big is it going to be? hans: you will see the announcement at the end of the

year. it seems that the company is growing nicely and there is no immediate plan for an ipo. emily: speaking of tiktok i probably ask you this question before but since the landscape is constantly changing, i wonder what you think about the loyalty to tiktok, given the fact that it is about a quick fix, getting that fixed in the moment. do you see tiktok being a sustaining, long-term platform, or do you see a shiny new platform that potentially comes along and steals that thunder? hans: tiktok has been able to achieve -- it is amazing. i was a frequent traveler before covid. whether it was going to sao paulo or bangalore in the south asian continent, or to bali in

indonesia, when you see a cabdriver in indonesia, or a food-delivery person in singapore, everybody thinks that it is tailor-made for them. the amount and degree of creation is amazing. i do think that both youtube and tiktok have ways to sustain themselves by creating so much content and curating it in a way that makes it so hard to stop. i remember people asking, would you ever cut that cable record in your household? i can watch tiktok anytime we want on our tv. the need for programming, set programming is a lot less, and the timing that is available for

that curated and personal content is a lot more. today more young kids want to be a youtube influencer or a tiktok influencer thana professional job like a doctor or astronaut. my kids look at me and say, dad, you only have 15,000 followers on twitter, what is wrong with you? [laughter] you must be on some kind of c- list. what is wrong with you? so it is a different world we live in. [laughter] emily: indeed. hopefully young kids want to travel as exotically as you, can give of all those places he just mentioned. hans tung, thank you so much for joining us as always. coming up, the amount of capital deployed by venture funds continues to grow, but is it going to women-led businesses? we talk to pamela kostka about its latest effort on the lack of

funding for women. next. , -- this bloomberg

emily: 2020 a record year for vc funding and 2021 is trending similarly, but that is not the same story for women founders. a new report from non-profit all raise found funding for teens led by women fell, and even worse for latinx and african american founders. to discuss the slow march inequality in silicon valley is all raise ceo pamela kostka.

thank you for joining us. tell me about the most surprising and i suppose unsettling findings in this report. pamela: 2020 was an unsettling year across the globe, but it was really unsettling when we dug into the numbers about where female founding is going. there has been record deployment in venture capital, and yet there was a significant headwind that we put ourselves into thanks to covid, where funding to female founders fell. some of the lowest numbers since 2017. there was a significant backslide this past year, and a lot of that we attributed to risk reduction, a lot of people not being able to get out and network directly and engage directly with one another. and also pattern recognition, if

all back to old styles and muscle memory within the industry. there has been some bright spots as we head into q1 and into q2 this year, but we shouldn't be complacent and think that we are done. emily: i guess the big question is why. if you have more money coming in, why not take that risk on women? why is it seen to be more risky to invest in women? pamela: it is actually not more risky to invest in women. the numbers and economics clearly show that investing in women is a prophet-smart decision. for every invested dollar in women on average, they will return two times the amount of revenue that their own male counterpart team might. we have to focus on the fact

that there is just bias in the system. we look at a couple of different things to make a change. one is to diversify the venture firms. there are too few female venture capitalists in the ecosystem, it is still dominated by white men. 54% of venture capital firms don't have a single female partner in the ranks, so when it comes to analyzing opportunities, their networks are closed networks. we really need to open up those networks by inviting more women into venture capital, number one. and number two, reverse bias in our process of how we look at people and evaluate opportunities. we are seeing this as a networking opportunity. we certainly know for years the evidence out there is that it is not a pipeline problem. opening cap peoples networks to female offenders, especially underrepresented

founders will be key to unlocking the potential in the market. there is trillions of dollars of value waiting to be mined if we can open up these networks. emily: the picture is given darker for latinx and black founders. what did you see? pamela: the numbers are appallingly small. we are partners with another organization. less than one percentage point, still closer to zero than any meaningful is going to black and latinx founders, despite the fact that black female entrepreneurs are the fastest-growing segment. there is just really not any -- there has been very minimal movement going forward. i think the industry as a whole, though, is starting to turn their attention towards looking at black female founders, latinx fema founders underrepresented

founders in general, finding opportunities to have access to these founders and actually to deploy capital for them. that's part of why all raise exists, is to measure progress in the industry and what we can do to move the needle forward for black, latinx, and other underrepresented founders. emily: as we come out of the fund and make -- -- of the pandemic are, you worried that silicon valley will keep missing out on the talents of women and latinx and black founders? pamela: certainly if we just look at 2020, there was a lot of headwinds that had stolen the progress we had seen going forward. but there is also tailwinds coming out of 2020. the movements that happened in 2020 around race and gender certainly has put tailwinds. so when we look at a lot of

promising data going into 2021, today, for example, the initial public offering space, two female cofounders' company. that is a positive trend. we have seen a lot of other ipos as well -- bumble, 23andme, all of these -- poshmark -- all with female funders. we are starting to see the crescendo of ipo's and continuing to shine the light on these incredible opportunities. in q1, we did see an unlocking of potential. 387 deals done for female co-founded companies which represented around $9.8 billion in capital. trends indicating that we are moving in the right direction, that we are unlocking that stasis we had.

but we shouldn't assume that we are done. we would be interested to continue to track the data in q2, and look at what is happening both in the unicorn space, but really there is an opportunity for the industry to give birth to the next amazons, the next facebook, the next netflix that would be founded by a female founder or entrepreneur. that will only happen at the highest levels, looking at those c-stage companies, who are those series a intrapreneur, and meeting these incredible founders that are out there. emily: if only more women and people of color had those opportunities, imagine how different the world could be. pam kostka, all raise ceo, thanks so much for joining us. coming up, one-of-a-kind.

how rolls-royce is making its luxury cars even more luxurious, with the help of technology. and as we head to break, amc surging more than 35%, vaulting the company market value to $13 billion for the first time. it has been fueled by retail investors eager to save them will begin to industry. the stock is up more than 1150% year to date. this is bloomberg. ♪

emily: rolls-royce has announced a new program that would allow elite customers to commission a car of their own. so far the automaker has made three individual custom-built cars. one of them has a yacht-like deck.

earlier we spoke to the company ceo abouts the custom cards as well as how the global chip shortage has impacted the automaker. >> we haven't seen anything. we are part of the bmw group, and the bmw group managed the topic extremely well given that they ordered very early already a sufficient amount, and we as rolls-royce motor cars haven't been affected as well because we also set our order books for chips early and ambitious enough to meet the demand, which is now happening. >> you have copyrighted violent shadow. no i am wondering what the transition to ev at rolls-royce is going to look like. when are we going to see that car? how different will it be to current rolls-royces? >> that is still a secret. time to come.

it will be a brand-new rolls-royce, rest assured, no worries. one thing i can tell he is it will not be this car. we agreed with clients that this is their car and there are only three available of them and we not copycat that into other wills versus, this is an exclusive design meant for clients. it was even commissioned by the clients themselves together with our designers. for that reason, that is protected. the car you are talking about will look different. >> will it be an electric vehicle? >> it will be a vehicle, for sure, obviously. [laughter] i can't tell you more. just one thing, we are sticking to our plans -- i said already, we will go full-electric in this decade. watch this space and see what happens.

emily: rolls-royce' ceo torsten muller-otvos. that does it for this edition of "bloomberg technology." i am emily chang in san francisco. tomorrow we will be joined by ian rogers, chief experience officer of ledger. this is bloomberg. ♪

♪ >> very good morning and welcome to "daybreak australia." i am haidi stroud-watts in sydney. >> and good evening from bloomberg's world headquarters in new york i am shery ahn,. the top stories this hour. president biden is set to unveil a $6 trillion budget proposal even as the markets f