>> from the heart of where innovation, money, and power collide. in silicon valley and beyond. this is "bloomberg technology" with emily chang. emily: i am emily chang in san francisco. coming up in the next hour, but antitrust. secret subpoenas, ransomware. microsoft's brad smith addresses at all.

plus, efforts to fight climate change and encourage racial equity across corporate america. we have got the head of xbox's game creator experience. we will chat about the newest lineup of games and how the global chip crunch is affecting the supply chain. plus, apple debuts its beats studio buzz. there is new guidance of wearing masks at apple stores. -- apple stores and offices across the contribute stocks, a late rally today. ed ludlow has the details. ed: tech leading the way. the nasdaq 100, the most tech heavy gauge, up by almost 1%, closing at a fresh record high. chinese adr's, it's best one-day gain since april.

semiconductors getting in on the action as well. in terms of specific names, it is apple leading the charge. the best one-day gain since march. the news, new headphones. $150 per studio buds. this gives apple access to the non-ios crowd. one of the best gainers, netflix, 1 wall st firm saying it will increase reputation if it does not at least boost revenue. tech has been on a hot streak. seven consecutive days of gains. that is the best streak since december. it was at that time in december that we were talking about, what happens to these tech stops when the reopening start? we saw interest rates starting to rise. the other big story,

cryptocurrencies. bitcoin up above $41,000 at one point on monday. it is a little below that toward the end of the session. we are hovering around 40,000 now. this comes after mosque -- after musk's comments over the weekend that bitcoin would -- that tesla would resume excepting bitcoin for vehicles once the mining was done with more sustainable sources of energy. ethereum is higher too. that has taken the galaxy index up 6% on monday. so often is just bitcoin that is the driver. but we are seeing across that basket is a lot of positive. emily: what is the weekend without a comment on bitcoin from elon musk? meantime, in washington, the head of the justice department's national security division is stepping down next week. he faces heat about what he knew

regarding the agency's subpoenas for data from big tech companies including apple, google, and microsoft. i spoke with microsoft president and chief legal officer brad smith earlier on one he says these gag orders need to stop. brad: what we do know is clear, the doj used its authority in the trumpet ministration to pursue an investigation of these reporters and people connected to congress rather than serving a warrant on the individuals themselves. they went to the tech companies that had the emails or text messages. they went to apple, google, microsoft. they not only served the warrant, they imposed gag orders. it was not until those

that is when we first found out the magnitude of this. now it has come to light and i think it raises a very critical issue about the way that this law enforcement process should work. emily: what do you still not know and what are you still trying to find out? brad: i think there are broad questions for the public. we do not live in a country where it is typical practice to see a law enforcement agency seizing records of reporters and elected members of congress. it gets to fundamental issues of democracy. i also think it gets to a very important issue around technology. before the cloud, if the government wanted your information, they basically had to go to your front door. they had to give you, the homeowner, a search warrant. you could stand by and watch what was happening in many

instances while they searched your own. you could then go to court yourself and file a protest if you thought the government went too far. we fundamentally believe i think across the tech sector that we need to restore that kind of balance. if we fail to do so, we undermine long-standing freedoms in the country and those in the tech sector, we are put in the middle. this is an issue where the government should have to go most of the time to the individual whose information they are seeking. emily: you have a very passionate op-ed out about this in the washington post. you tried to fight the government about this before and it keeps happening. brad: we file transparency reports every six months. if you look at those, you will see that we do get come across the united states, search warrant and subpoenas typically

in the thousands per year. most of the time, they are just looking for account records. we do sometimes get these requests for data, email, documents. we do sometimes get these nondisclosure orders. it is not a trivial percentage when you get to the consumers protected. it is very small when we get enterprise data. but we do typically fight them whenever we see a legal basis. one of the concerns we have, this is not only an issue that is important for the united states. it is actually an issue that has broad international ramifications. the european governments are concerned about this. they are raising this today, every day, in recent months with the biden administration. they want to see assurances and safeguards that the u.s. government will not go to a u.s. court and ask u.s. companies to

turn over that belongs to europeans. until we get that sorted out, it is basically holding back, in our view, the tech sector in europe. emily: the trump white house counsel at the time don mcgann and his wife, specifically from apple. you talk about how these cases should be the rare exception and not the rule. in which case deacon think these kind of requests are permissible? brad: under long-standing principles in the country, you would say that this kind of approach is ok when there is a concern that evidence will be destroyed before it can be obtained, or the safety of a witness might be put in jeopardy. it is these kind of narrow exceptions. i think what we are seeing in recent years that it is just easier and faster to go to a

cloud company rather than an individual or enterprise, and they are taking the easy path. that is where we think attorney general merrick garland needs to take action here to strengthen justice department policy. we think congress needs to codify stronger policy. and we think the u.s. government needs to negotiate with european allies to put international rules in place. emily: a bipartisan group of house lawmakers has unveiled sweeping legislation. when you look at this, what do you see as fair play, and what is not fair play? brad: i think we are in the relatively early stages of a broader conversation. you do see concerns about the power of tech companies, ourselves included. people want to know, what is the right balance between encouraging innovation and responsibility under the law.

we are seeing this in washington, brussels, around the world. i think where this is going is a particular focus on technology platforms that serve as gatekeepers. in other words, not only as a platform like an operating system, but people need to go through them to sell their commerce, whether it is amazon, an app in the apple app store, or through a service like google search. i think that is where we will start to see more government focus. that is where we are starting to see more antitrust focus, especially as it gets connected to digital advertising. you do see more of a common conversation around an agreed-upon set of problems that people are trying to solve. emily: how concerned are you that at some point they may come back for microsoft? brad: there are aspects of the

legislation introduced in the house last week that absolutely applies to microsoft and many other companies. i think for all of us, it is a time to step back, try to think broadly, look beyond ourselves, and ask, what is the right role of technology to serve our economies, countries, and the world. i think there will be days when there will be restrictions that we think go too far, that undermine innovation, that basically undermine our ability to serve customers. it is all about allen's. that usually takes a while to figure out. emily: the ransomware attack thoroughly coming faster and more furiously. are they only going to get faster and bigger? and how can we stop this? brad: i think as we enter an era

like we are now in, we are in a different period of time where we can expect there will be more attacks like this. i think the thing to keep in mind is that these types of cyber criminal groups will basically focused typically on organizations, nonprofits, government agencies, health care providers, small businesses that are vulnerable. the reason they are vulnerable most of the time is frankly because people have not moved to the cloud or they are not patching their servers or they are not applying cyber best practices. for those of us in the tech sector, we have to continue to make it easier for people to apply protections that were created. for everyone else, we have to embrace the need to put our cybersecurity house in order before an attack rather than

waiting until afterwards. emily: the trail in so many of these cases is leading back to hackers in russia. i had a guess to say that we are at war with russia basically, that the russian government is not stopping this. what should the u.s. demand from russia and would you agree with that characterization? brad: i would not go that far. but i would say this. we live in a world where there are increasingly international norms. fundamentally, they call on and require every government in every country to exercise restraint itself as a nationstate and ensure that the law prevents cyber criminals from running rampant. where governments are not doing enough to police criminal organizations within their borders, that is an international issue. it should be discussed even within heads of state. there should be a call on them to do more.

that is obviously one of the conversations i believe we will see unfold this week when president biden and president putin sit-down in geneva. emily: microsoft president brad smith. we will hear more from him a little later this hour. coming up, the sky high-priced to join jeff bezos on blue origin's flight. that is next. this is bloomberg. ♪

emily: as we mentioned earlier, apple has debuted a new product from its beats line. the wireless headphones are now

on sale for $150. they have a dedicated android app, making them more friendly to users outside the apple ecosystem. air pods continue to be seen as more of a premium product. meantime, apple plans to drop its mask requirements for vaccinates customers at many of its u.s. stores starting next week. employees however will need to continue to wear them and will not need to ask customers for verification of vaccination. blue origin says the winner of the auction to join jeff bezos and his brother on a trip to space will pay $20 million for that privilege. after weeks of bidding with more than 7000 submissions, the winner will not be revealed for a few weeks. the new spacecraft can carry as many as six people on its trip.

we will continue to bring you all the updates. elon musk has decided to sell his blaster meeting house. in a tweet -- his last remaining house. the decision comes a week after propublica reported that musk, bezos, and warren buffett paid little income tax compared to their wealth. musk said he will continue to pay tax to proportion to how much time he spends in the states. he currently lives in a rented house in texas. i will speak to the president of doordash, next. this is bloomberg. ♪

emily: doordash benefited from the pandemic boom in food delivery of course. now, the app is expanding into asia. they hope a partnership with petsmart will help them cater to pet owners. joining us, the president, christopher payne. the partnership will bring pet supplies to doordash customers. how big a market is pet supplies for you? christopher: thank you for having me. today is a great announcement for us because we are making -- we are announcing our partnership nationally with petsmart, which will offer on-demand delivery from 1500 petsmart stores to doordash customers. the typical petsmart has 11,000 items. pet food.

sometimes you run out of food and need the food immediately. toys, treats. over the pandemic, 44% or so of americans actually welcome a new pet into their home. nearly half of those were first-time pet owners. very excited as a pet owner to be able to announce our partnership today, going again beyond restaurants and into pet supplies and products. emily: you're also going global and bringing doordash to japan. how big a market is japan for you? and what country should be next? christopher: japan represents our third country. it has been a busy couple of weeks. we launched last week in a major metropolitan area north of tokyo. it is the third largest economy

in the globe. tokyo is one of the most dense countries in terms of restaurants in the world. however, a lot of the markets outside of tokyo really have yet to connect local businesses to local consumers. that is the vision of doordash. with this launch, we are now going to power restaurants in potentially other categories to bring consumers in japan what they want in minutes, not days. emily: what could be next after japan? christopher: i think you see two of the main thrust. tony, our founder,'s vi -- tony, our founder, his vision is to connect the globe. with the announcements we have made in the last couple of weeks, we did rite-aid, we did a

bed, bath, and beyond announcement. you see in the united states us rapidly expanding beyond restaurants. consumer expectations continue to rise as they want more and more products brought from local shops to their homes. that vision is not confined to the united states. today, canada, australia, and japan. in the future, there will be others. emily: everyone wants to know when new categories are coming, especially grocery. how close is grocery delivery and how popular do you expect it to be? christopher: one of the things we did early in the pandemic, i think i was on the show talking about our partnership with cvs, we felt like convenience would be very important for consumers during the pandemic. the ability to get staples, household products, over-the-counter medication in minutes, turned out to be

incredibly powerful. we have partnerships with 7-eleven, walgreens, cvs, rite aid, and others. that was a powerful addition. it also created a platform for us to be able to go into grocery. partnerships where we are beginning to pilot grocery delivery on doordash. stay tuned for additional announcements. it is very much a category that the doordash consumer will want delivered to them quickly. emily: we are staying tuned, for sure. what does all that expansion and growth main for doordash workers? will they be paid more for delivering from more categories? christopher: to me, this is one of the most exciting elements of going into new verticals. often, for convenience, late night or late afternoon, same with grocery. it provides more opportunities for dashers to earn throughout

the day. we have over a million active dashers on the platform. they earn an average of $25 an active hour, when they are doing in delivery. emily: all right. we will keep watching. staying tuned, as you say. thanks so much for joining us. all right, coming up, highlights of the annual videogame tradeshow with big announcements from microsoft. we will talk about it all with sarah bond, microsoft corporate vice president of gaming ecosystem. she will be joining us. this is bloomberg. ♪ ♪

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♪ emily: welcome back to "bloomberg technology" i'm emily chang in san francisco. let's get back to financial markets. a rough day for one ev stock ed, take it away. ed: the would be maker of electric pickup truck. stock was 19% on monday, the biggest drop on record. not a pretty picture. the ceo steve burns and cfo julio rodriguez both resigned. if we bring the pictures.

companies selected to go public through a reverse merger the second half of 2020. not only did they disclose that both executives resigned but they also concluded through an independent board investigation that the company has made inaccurate statements about some of its pre-orders. in some cases they say they came from fleet when they came from management companies and influencers who had no intention of buying them. you can see the latest impact on the far left-hand side. it was only last week, actually, they disclose they did not have enough cash to get production. if they do not raise fun soon, they would face finger c. you might be saying, hold on. this company also is part of an sec investigation in march. it is eerily similar to what happened to nicholas -- it too

made some inaccurate statements. its founder trevor milton resigned. what they both happen, is that those sec investigation stem from a report from the same short seller, hindenburg research. definitely want to keep an eye on this. a spat ev story starting to unravel a little bit. you can see what it has done. emily? emily: ed ludlow. moving on to microsoft. e3 is underway with the conference being done, all virtual. big announcements have come from microsoft, and -- this was microsoft's first time participating in e3 since buying bethesda last year for $7.5 billion. joining us to discuss is the corporate vice president of the gaming ecosystem. good to have you with us. you showed off 20 different

games yesterday. which of them do you think are really going to take off and which are your personal favorites? sarah: it was a great day. we had 30 games if you can believe it. 27 of them in game path. i will tell you, it was really tough for me to pic a favorite. but the moment of the show that i loved the most was having todd howard from bethesda open the show and introduce their new i. p. starfield which i cannot wait to play. emily: how confident are you in halo making it this fall? i noticed that starfield has a specific release date but we do not have a release date for halo and everybody wants to know. sarah: yeah, i am very much looking forward to playing halo this holiday when it launches. one of the things i am most excited about that we are bringing to gamer is with the lineup we have to th -- we

shared halo infinite. it looks beautiful. a pirate -- which my kids cannot wait to play. and we have a time of other games coming into the catalog as well, 24 of them playable across console, cross pc, and across all devices, powered by xbox gaming which is just incredible. emily: -- you are confident we will have halo in time for the holidays? sarah: i can't wait to play. i do not know if you saw. emily: all right. meantime, your charting the path to a consoleless future where people can play your games on tv's no console required. how soon will that be here before the holidays? sarah: you know, it is always great to talk about the future. and there is always going to be a place in the world for the flagship consoles. it is just incredible experience. but what we're doing with the

cloud is we are making it possible to extend to all sorts of scenarios. you can start playing in your living room in 4k and hdr, and play on a mobile device. and that is what is powerful. we really are building a future where it is possible for everybody to play any game they want with anyone, anywhere they want which is why a love what we do. emily: speaking of the consoles, it is hard to get an xbox console if you did get one at the start of the pandemic. amy hood, the cfo of microsoft, has said that will continue through the quarter. after june, our supply constraints going to let up? when do you see it being easy to get one if you want one? sarah: yeah, we have been actively working with console suppliers to make sure they can meet the incredible demand for xbox series x. i'll tell you we really were humbled by the consumer reaction to what we had created. it takes years and years to

build hardware like that. and the reception has been incredible. so we are continuing to work on that to make sure that we can bring the incredible experience to everyone. emily: so, this -- this consoleless future, what does this mean for a company like gamestop, which has made its name selling consoles and hard copies of games themselves? sarah: well, at xbox, we are all about choice, emily. we want people to be able to play the games anyway they want them and also buy the games anyway they want them. we tell partners like gamestop are integral to that. some people prefer to buy their hardware and software in person. some people prefer to do things digitally. we -- we are giving everybody options. emily: with the new executive team at gamestop, does that mean you are bullish and what they have planned? sarah: you know, when i look at

gamestop i'm excited that their partners of ours, because people love games. and having a retail partner and working all of our retail partners is integral to giving people the experience they want. emily: all right. sarah bond, corporate vice president of gaming ecosystem at microsoft. sounds like it is going to be a busy and exciting holiday for you. thanks so much for joining us. apple is working on the new apple watch, new models and new features. our tech reporter mark berman has the latest edition of "power up." mark: i'm mark berman with "bloomberg technology." and this week's episode of "power up," what to expect from the apple watch year, in the years to come. for this year, for what is likely to be called the apple watch series 7, apple is planning a substantial update with an updated display. a faster processor and new wireless technology. for the new wireless tech, apple

is testing an upgraded version with wideband tech using the air tech buffer. it is planning a faster processor and updated display. apple is testing a new lamination technique that will bring the display closer to the cover box to have an overall nicer experience. the company is also testing narrower borders to make the overall form castor look a bit smaller and make the display appear bigger. for next year what will be called the series 8, apple is testing a more iterative update to the flagship watch in addition to a refresh to the apple watch sc, the lower-cost model launched last year. the company is also testing a new explorer or adventure addition in -- edition in the extreme sports. apple is also working on future versions of the apple watch. first is the body temperature sensor to get your temperature which would been handy over the pandemic. now from your wrist. the company originally aims to include that in this year's

apple watch model but now it looks like it will arrive next year with a series 8. the company is working on a blood sugar or glucose sensor to make the lives of diabetics easier. apple's goal is continuous noninvasive blood sugar monitoring through your skin via the apple watch. that sensor is many years away. i'm mark berman. this is "power up." emily: coming up, wall street is getting a bit more crowded. goldman sachs announced a full return to the offense for most of its employees. we'll check in on what big tech is putting in policies next. this is bloomberg. ♪

>> we decided to be proactive. we know that we wanted to go to -- of the sec. we know that we want to set the bar in transparent financial reporting. and yes, it may have taken a little bow longer -- little bit longer to be accepted but today we are happy to share what we have done in q1. we meet our targets. -- we beat our targets for . emily: talking about the merger between his company and the blank check firm completed by the end of the year. the deal -- was due to close in july but has been delayed as they work on an audit of its

financials. we are watching. meantime, wall street has got busier this week. goldman sachs asked all of its employees to return to his downtown office monday morning. the banks neighbor citigroup says workers will not return until july. and even then many can work on a hybrid schedule. big tech companies taking different strategies announcing that amazon staff would work three days in the week in the office to salesforce who is adopting a fully hybrid model. joining is a flagship people manager. thank you so much for joining us. why are we seeing such big differences between companies in the same industry as to how to approach this? >> well, i think different industries have different approaches to how they are viewing their workforce. at slack, we think additional first approach to the future of work is where the industry and all companies will be heading.

emily: does that mean that you think that companies that are forcing workers to return to the office will lose talent? >> i definitely think it will be harder to find the best and the brightest if there are such different ways of approaching work. at slack, w believe wee are not going back to the way things were. we are working and we have been working since march 2020, and we have been creative and productive and we have been able to be effective. so, let's take those learnings and bring them into the future and establish them across the company. emily: but there are a lot of nuances here. i wonder if you can explain how you are addressing some of the complicated factors. what are the rules for executives, for example? do the same rules apply to them that apply to everyone else? nadia: absolutely. it all starts from the top for instance we got rid of all of our executive floors and dedicated offices in all of our buildings. we've also asked our executives not to come in for more than

three days a week because people will follow. if their leaders are in, they will come in, too. we want people to embrace the digital first perspective and it starts with our leaders. emily: but there must be some challenges. i'm curious what challenges you are seeing and if you are concerned about this is the way we feel now, but a year from now, two, three years from now, if the world bouncing backs, perhaps even more to a more office center culture, if then slack has to rescind some of the freedoms it gave its employees this year? nadia: two things are important to that. one, i think it is always important to listen to your people and to take an experimental mindset. not be locked in on this is the way we will be forever. but, two, i think our perspective is that we are not going to snap back to sort of habits that we have had over the generations. this is a once-in-a-lifetime opportunity the pandemic has

provided us to reshape the way that we work. we've proven it is possible. so we think that is going to be the way of the future. emily: how does this play out in slack's products? conventional wisdom would lead one to believe that more people go to the office less people you slack. nadia: it's proven that people have been using slack before the pandemic and continue to great -- in greater numbers after the pandemic. once people use the product, it is something they found that made them more collaborative, more productive, easy to connect with people, understand information and decision-making and creating a more transparent culture. all of those things are positive effects of the product itself and also other digital tools out there to enable this type of work. emily: how do you think it is shaking out in terms of the war for talent? is there going to be a redistribution of people, or are they all going to go to the companies that are more like slack? nadia: i definitely think this will be table stakes.

having flex ability is going to be one of the key tenants that talents will look for in the future. for instance, we believe that slack is our hq, not a physical location. that is our toolkit to use for a specific type of work. collaboration, team building, project kickoff, etc. this has also allowed us to hire people outside of where our physical buildings are. over the last two months we have seen a trend where over half of our remote based employees are underrepresented minorities. we've been able to be more inclusive again talent or talent resides, not just where the offices are. emily: that is certainly where the numbers show that slack has outperformed its peers especially on diversity and inclusion. thank you so much for taking the time to join us and share your perspective and approach. ok. coming up, lots more from microsoft smith, including fighting climate change and

creating racial equity. not just at microsoft but across technology. that is next. and sc was one of the biggest movers on the s&p monday. bloomberg intelligence saying sales from the e-commerce retailer could grow by double digits in each of the next five years. in the meantime, expected to lead the charge for small companies like etsy are expected to do well due to price and convenience, and of course innovation. this is bloomberg. ♪

emily: earlier we heard from brad smith about the topic of the day like ransomware, privacy, and antitrust, but microsoft also played a significant role in reaching goals in the effort to fight climate change. i spoke to smith about that and more today. take a listen. >> we've learned a lot in the

year and a half since we embarked on her own very broad ambition to be carbon negative is a company by the end of the decade. one of the things we learned it is all about measuring. .unless w can all measure carbon emissions the same way in every organization around the world, we're really not going to have a basis for confidence that we are making progress. the second thing we have learned is share holders care about this issue. they increasingly want to know what companies are doing when they are making investment decisions. we filed comments with the sec today. we strongly endorse the sec embarking down the path with rule making. it will have to do it on a step-by-step basis, because i think we all have to start by rallying really around the need to create a common basis for standardized measurement around the world. as these measurement systems get better, i think it will connect

very closely with the need for transparency and accountability. starting in just two weeks, part of my pay will be based in the next fiscal year on whether microsoft makes progress in reducing carbon emissions. people will want to see around-- out executives around the world. out of companies and governments and nonprofits. the sec is playing an important role in helping to spur what i really believe is one of the most frankly important movements of a generation. emily: on that note, even if microsoft meets its climate goals, that does not mean the rest of the world will. what are you doing, what is microsoft doing to help others along that path? >> well, i think we have a very important role to play in multiple ways. first, we have got to get our own house in order as we focus on doing. but, second, we are working with our suppliers and our supply chain to strengthen measurement systems to help them reduce

emissions. this will be like so many other issues. you will need to beat -- it will need to be automated. it will require world-class technology, that organizations of every size can use to record and report and ultimately reduce their emissions. we're leading in there as well. this will be a big priority and the months ahead. as a company to provide technology to support our customers. emily: now, brad, it has been disclosed that microsoft -- i have to ask you this, and 2019 received a complaint about an affair the bill gates had with an employee in the year 2000. will microsoft take any more steps to conduct an investigation into bill gates's behavior when he was ceo, chair or on the board? i know he does still meet with the employees on product from time to time. will those meetings continue? >> let me just say this. our board looked at these issue in the past.

they made a decision to -- bill made a decision to resign from the board. we feel very good about the investigation we pursued, and in particular, the focus on the individual who raised the concerns, because i think that is something we have all learned in recent years, to frankly focus on the needs of the claimant, to victim -- the victim. and we did that. what i will say more than anything else is that microsoft-- the microsoft or 2021 is very different from the microsoft of the year 2000. the world of 2021 is very different from the world in 2000. for a lot of good reasons, there's a lot that happened in the year 2000 that would not be considered acceptable today. but, as we look to the future, i feel very good about the safeguards we have in place, the policies we have in place, really the cultural that we built to address this issue. and we will stay focused on.

emily: on that note, will gates still have an influence on the company, even if he is an advisor of sorts in these product meetings as a company is changing? this is the company of all of the employees who work there today. >> well, i think you will see us continue to talk to bill in an appropriate way on issues that matter. but we are talking about sec comments today about climate change. i have to say, i've probably learned as much from bill gates on climate as anyone else as i had the chance to talk to. i think bill is doing more to address climate change than almost any other person. where their a part of two duties for us to work together in an appropriate way, in a way that is sensitive to all the issues people have raised, we will continue to benefit from his advice and i think you will see bill, himself, want to

address these in a very responsible way. emily: ok. speaking of responsible he, microsoft has just released a major equity report with a multiyear plan about goals you are setting what are the most important things that you see in this plan to keep microsoft on the leading edge of the cultural, culturally informed workplace? >> there's really two dimensions i think for all of us who are in the business community when it comes to racial equity. first, how do we do a better job as businesses in creating opportunities for example, for the black and african-american community in this country? to not only enter our workforce and workplace but rise and have the opportunities to succeed and be promoted. that's why we're very committed to increasing her representation. emily: brad smith, microsoft president and chief legal officer on a range of topics.

that does it for this edition of "bloomberg technology"." tomorrow we have an exclusive interview with strike cofounder john collison. that will be a fascinating conversation. do not miss it. i'm emily chang. this is bloomberg. ♪

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♪ >> a very good morning and welcome to bloomberg daybreak: europe i am haidi in sydney. >> good evening from bloomberg's world headquarters in new york. i'm kathleen hays. now i look at the top stories this hour. nato struck a delicate balance on china while they say beijing's ambition present systemic challenges, germany urges partners to