announcer: from the heart of where innovation, money and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. ♪ emily: it all comes down to the new chair.

while congress is also pushing for tougher antitrust legislation. intel is the latest to say another chip delay, with shares falling. more steps forward even though the latest tech launch delayed elon musk insisting his satellite would bring internet to nearly everyone in the world by august. first, u.s. stocks managing to close at another record. let's get decree recouped a -- >> tech really taking the lead and you can see it the chart behind me. the nasdaq 100 outperformance is all you need to know. with that tech outperformance you always have semiconductors

taking it one step forward and gaining even more. a big chunk of those gains came for apple. today you not only see apple gain but all the names and its supply chain coming after a note. the analyst says names leveraged apple are likely to outperform into the fall. this is something that is kind of unique we have seen with the supply chain benefits as well. this is something to watch into the summer and into the fall. [no audio] we are a percentage point away from the your today basis. really crucial to talk about the

value train. growth may be alive and thriving . emily: kriti gupta, i know you will keep tracking that for us. a judge denied a lawsuit to break up facebook. however, the victory could be short-lived as the ftc reviews its options. one being to revive the complaint if the agency can prove the social network is in fact a monopoly within 30 days. this time the ftc has 32-year-old lena kahn in the driver seat. sarah, talk about the ftc's options right now because they certainly do have a chance to bring this case against if they

they meet the threshold. >> the biggest complaint is that they didn't actually prove facebook as a monopoly. they said they have had more than 60% of the market but they did not define that market well and they did not give data to back it up. if you are giving the user numbers, time spent, that may not be enough to satisfy the idea that facebook has a monopoly on personal social networking. it is really difficult because how do you define the market that facebook has so controlled? that is the biggest challenge for the ftc going forward, making sure they have the right data and making sure they can make a strong argument that when you are looking at facebook you don't also have to include youtube and tiktok and snapchat

and linkedin. all these other companies that help people connect with each other online. are those competitors in the same market of facebook or not? do they have monopoly? it is a pretty essential question. emily: david, do you believe facebook, instagram and whatsapp is a monopoly? >> i don't think it is that clear. great to be on with sarah who knows so much about this, but i would even throw in services like discord or twitch and even if you want to be more broad in your thinking, roblocks. facebook could point to these and say, these are social networking services in some way or other. to me it may be somewhat immaterial.

emily: what do you think lena khan will do? she has obviously been on the opposite side of big tech but now she is the chair of the ftc. she has been pushing for harsher antitrust laws and you have to prove that facebook is a monopoly without arguing new laws need to be passed. what are her options and what path do you expect her to take? >> it is interesting that she is in this industry because she got the job on the strength of her own arguments, that monopoly and violations need to be defined more broadly that historically they have been which is consumer pricing harm. she wants to define it as other ways of harming consumers and i think she has a strong case. obviously many others agree or she would not have been named

head of the ftc at a young age. . she has two options one, she could refile the case with a stronger argument about monopoly or she could decide not to do that at all and file an entirely different case based on a broader theory of consumer harm which i think is quite possible. in any case, she is an innovative thinker about what constitutes consumer harm biotech platform and she is going to take action -- by a tack platform and she's going to take action. emily: the ftc wants to do over after already having approved the instagram and whatsapp mergers. what is the level of confidence facebook has right now about this particular case and about for the regulation down the line?

[indiscernible] >> internally they have been hesitant to do deals. that has been a big issue for them but that said, they are celebrating this decision yesterday. there was something on facebook saying how proud he was to connect the world. they are proud that they are the fastest company ever to reach the $1 trillion market valuation. that happened yesterday after the case was dismissed. i think it is a good time to be facebook right now and see this -- it does have a rally and call for congress to think about new laws. may be lina khan has to come out in a new way because when you look at the ftc argument, they are trying to argue not just that those -- that

facebook have monopolistic tendencies because they adopted this compete or acquire strategy. the fact that control instagram and whatsapp deprived the market of innovation that would've otherwise occurred if they owned them. it is a squishy argument to make. that an alternative reality would be better. i think it is extremely hard to prove. maybe if they came back with a different kind of argument of harm, it could be stronger. emily: david, you think the biggest legal threat to facebook right now may not be in the united states but actually a piece of legislation in the eu. tell us about that. >> i would not be celebrating right now if i were mark zuckerberg. he has innumerable legal challenges ahead aside from the many bills that have emerged

from the house that may or may not pass in the united states. the eu has the digital services act which has been introduced and will probably take a year or more to pass through all the phases of turning into actual legislation. but the chances are the bill will become law. one of the things it does is it basically sets criteria for how facebook and other big platforms have to respond when the government says the content is illegal. they are required to take content down immediately if the government says, content is illegal. that is new. it will also impose new restrictions on them regarding the transparency of how their services work including how their algorithms work. that is a significant part of the legislation. those are big possible challenges to the way they operate which, if they became law in the eu which is more people in it than the united states, that could begin to

influence law all over the world just as the law in eu has influenced privacy. emily: certainly many threats, many potential landmines on the horizon. thank you for helping us break it down. david kirkpatrick, sarah frier, we appreciate it. walmart is moving to counter amazon's pushed into prescription drugs. the largest retailer will offer its own brand of insulin for folks with diabetes. walmart says it will be as much as 75% cheaper. 15 years ago they disrupted the industry by offering generic drugs to treat everything from allergies to cholesterol. this will cost just $4 a prescription. the u.s. is sounding more bullish. we look at the case for the digital dollar and what crypto regulations are coming. this is bloomberg. ♪

♪ emily: bitcoin rebounding for now after a wild ride the last few weeks. the most popular cryptocurrency has rallied above the average price the last 20 days. fed governor sounding more bullish on bitcoin saying, in my judgment we don't need to fear stable coins. the federal reserve has sponsored private-sector innovation. i believe we must take strong

account of the potential benefits of stable coins. i want to bring in jeremy allaire, co-founder, ceo and share of circle internet. what do you make of those remarks? what is the big takeaway? jeremy: i thought it was very positive for the continued rapid development of private sector led innovation in the currency space. we have seen years of innovation from the public blockchain which of the building blocks for how we can bring currencies under the internet. and we have seen -- what i read from those comments was the private sector is innovating very fast so the history of private sector electronic money, that is the history of electronic money innovation in most of the world, and the fed

and the government should be thinking about not just research projects but how to take something that is not just aspirational but operational and make sure it can be run in an effective way to the benefit of people in the united states. emily: give me a case for a digital dollar. jeremy: i mean, i often get asked the question what is the case for usdc? what is the use case for a dollar? what we can do is we can take that durable, reliable dollar which inherits from the underlying safety and soundness of the federal reserve and the fundamental monetary policy in the united states, and we can convey onto that dollar the superpowers of the internet. the ability to transact instantly, globally, with

businesses at the speed of the internet with very fast finality. and at a fraction of the cost electronic money moves today. you are really bringing true digitalization to the currency. there are many other benefits beyond that because it is a programmable nature. fundamentally, you're taking the power of the internet, putting that on the dollar, and making it widely available. emily: how much interest are you seeing from corporate treasuries to invest in stable coins like usdc? jeremy: this has been a fascinating phenomenon. we have seen in the past couple of years pretty dramatic growth in the borrowing and lending markets that have built up around stable coins like usdc. you are starting to see institutional quality lending markets and yield bonds built on this. we introduced circle yield which is targeted at corporate

treasurers, financial institutions and others. it is remarkable the number of traditional businesses that are looking at ways they can elevate capital in a responsible manner into these stable coinbase markets. i think that is a phenomenon we have begun to see and a phenomenon that will grow pretty dramatically the next couple of years as the digital asset markets continue to grow as well. emily: that said, i know these comments from the fed governor are what you wanted to hear. however, if you look worldwide, the increasing crackdown is happening from china to the u.k. and even in the u.s. where we are waiting for approval of a bitcoin edf. it is not happening right now and i wonder how big a risk that is if you really believe regulators will, in the near term,, onside or is this going to be a years long process? jeremy: as someone who got started in the crypto industry

in 2013 when people talked about regulatory risk and uncertainty let me tell you, it is a different world then than it is now. crypto is a trillion dollar infrastructure and an incredible amount of innovation happening behind it. major financial institutions, major internet companies, all building up around it. this is the next logical infrastructure layer of the internet and it is happening. what is notable about the regulatory engagement -- i don't view it as a crackdown. i view this as an engagement. you're talking about financial instruments, the financial system, of course you are going to have regulators that want to understand it, that want to make sure fundamental risks, whether they are prime risks, safe and soundness risks, that these are taken into account. that is the job of regulators. i view this as highly constructive engagement all over the world as this industry

becomes a massive industry. emily: i know you are focused on cdcs, but what about -- is there anything that strikes you as fascinating, as encouraging? or do you see a lot of risk? jeremy: look, investors beware if you are looking at any given crypto asset. there is an incredible diversity of crypto asset innovation from digital commodity money like bitcoin, ether, decentralized finance protocols and projects are incredible in terms of what they are introducing into the world. there are types of digital assets that are quite significant and i believe have a long way to go. and then we are seeing novel forms of innovation in crypto assets where we see things like intellectual property and digital content becoming crypto assets as things people can

purchase and trade. we are at the very beginning of what i think will be a world where there are millions of different digital tokens people are interacting with in everyday commerce and certainly from an investment in capital market perspective as well. emily: ok. lots to think about. jeremy allaire, circle founder and ceo and chair. broken promises from intel. why the server chip is being put off until 2022, but a delay for the server chip a win for amd. shares rising. we talk about it all next. this is bloomberg. ♪

♪ emily: intel shears found after the company said its zion server chip will not start production until 2022. the delay is not doing much to boost confidence. joining us but ian king who is covered chips for a couple of decades. it is one shippable wise at such a big deal? ian: the last couple of years intel has had, you cannot afford to say anything that starts with the delay, later than we had planned. this is what is going on and zion is the most profitable so any delay, that window of opportunity for the opposition is where the prophets are. -- profits are. emily: they were confident about until regaining leadership.

is this out of left field? ian: new designs take months if not years to come to fruition. he only took over in february so it is not really happened on his watch but up until recently he was say this would be arriving this year and how the company are saying, actually, probably next year. doesn't look great for him and it is triggering not fond memories for investors. emily: most of these issues thus far have not happened on his watch. how much confidence should we have he will be able to write the ship? -- right the ship? he has been there for 100 days. ian: i think a lot of the biggest problems investors had was they were not acknowledging the problem. what we have been doing is not good enough.

this is what we are going to do to fix it. it has been a new breed in terms of messaging and i think that has restored confidence. but the downside of that is these don't get fixed quickly at a company like intel. emily: what does this mean for amd? ian: more time for lisa to be saying, we are a viable untold end of -- alternative. emily: there is a lot of investor confidence. ian: as we have spoken to lisa she says we are going to do what we say. there is very little hype very little flashing us, very little activity we have seen from amd in the past. emily: we will see how much time

investors give. thank you for bringing us this update. while facebook cases were dismissed google is facing heat from the antitrust department. we talk with one former google executive who started his own competing search engine next. this is bloomberg. ♪ engine next. this is bloomberg. ♪

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>> welcome back to bloomberg technology. i am emily chang in san francisco. the chinese ride-hailing giant said to price it shares for its u.s. ipo expected to happen this week at $14 a share. at that price, the country would raise $4 billion in the offering that compares to alibaba's $25 billion debut in between he 14. at this price, didi would have a market value at 6.7 billion

dollars. we will have to see how investors respond. we will be all over that offer tomorrow. the justice department has stepped up scrutiny of google digital ad practices. the biden administration pursuing an antitrust probe that started under former president trump. this on the back of the doj suing google last year, saying that it is abusing its search. he is another ceo and cofounder of the ad free prescription search service. thank you so much for joining us. you must have stories, so many stories. i want to try to get as many out of you as i can. what was it that sparked you to leave and start a competitor?

what was google that you did not like or not doing well enough? >> i was at google for 16 years and i wanted to change. i came to realize that a world in which two or three companies are the gatekeepers of covering any consumer at all was not a great one and that advertising and things like tracking that come along with it was not a great environment. in many ways, this was my cofounder. this was the best way to create high quality. >> what makes you think that consumers are going to choose this when they can get it for free? >> what we have all learned over the past 10 or 15 years is that when the product is free, we are indeed the product.

the fact of the matter is that search advertising, $150 billion of revenue worldwide. advertisers turn it on and charge you and me. we wanted to create a product that had a sigler focus on doing right by you. it also creates things like personalization. we focus on what the best offers are, how you make sure this is the best there is. 20% of our gross revenue is there for supporting content.

it is a product that is focused on you, first and foremost. emily: you offer higher-quality, more results, how do you back that up given that google has spent decades perfecting its technology? >> that is a problem, google has tens of thousands of people. the fact of the matter is not being forced to serve as gives us so much more freedom in terms of how we innovate. we built on some existing services. that is something we are working on right now. when you shop, we want to be able to see things like retailers that source their product. for an advertising-based company, that is not an option. this is not on direct competition, we are really focusing on what we can do. >> do you think google is anticompetitive? >> google is an actual monopoly. there is nothing wrong with it. emily: google is a monopoly? michael: google has 90% market

share. the thing i worry about the most is not the ability to create a quality product but to get visibility in front of potential customers like you. the probe is focused on what are the practices that prevent competition? none of us are against size as a principal but when that is used to prevent competition, we have more of an issue with that. those are the things that we need to make sure -- >> how do larry and sergey feel about their new competitor? >> i have not talked to them about it. i have lots of friends at google. others understand why it is hard to create things like this. i would say the vast majority of people agree with the need for a

product like this. -- like neeva. emily: how aggressive do you think the government should be in trying to rein in the dominance of big tech and google in particular? >> the fact of the matter is that for the last 50 years, antitrust action has been -- the government has been asleep at the wheel. we have had this infatuation with tech companies. we realize that as these companies grow and grow, we need to make sure that there is more competition. i am not going to invest in a company like that, there is no money to be made at their but that can happen too many other verticals if we don't take strong action to ensure continuing competition. emily: do you think google should be broken up? >> that is for the doj to

decide. we just won a world where it is easier for companies. emily: the competitors that there are, have you ever spoken with any government officials? >> we are subject to the same subpoenas that other people are. when they come knocking for information, you have to provide it. emily: what is your response to

the judge throwing out the facebook suit. >> that case was hard to begin with because it reaches back into history. i think this will actually increase their desire to pass laws and let people take action. i think it is a temporary setback that will result in laws undergoing change, just having more tools. >> what about the pressure that google is under in the eu? there is a big threat there. do you see that as being more potent than what the u.s. government has offered? >> they think about things like regulation very differently. they think about antitrust differently. that has also changed in the past 50 years. i think this is a collective problem. you have companies that are problematic across the globe. this is benefiting everybody. >> blockchain's and crypto enthusiasts have advanced the idea that blockchain technology could eliminate the need for google and facebook altogether and eliminate privacy issues altogether. what would that mean for neeva?

are you thinking about the blockchain as you build this out ? could this make search engines useless? >> i would say that is years away. we are happy that there are mechanisms for people to get paid. i think we are 10 or 15 years away from them having a direct impact on searches that you and i use. emily: we will have to send this away and see if we get any feedback. thank you. salesforce has kicked off a big bond offering to help pay for its acquisition of slack. salesforce offering bonds.

coming up, a $30 billion forecast with 11 seconds on the countdown clock. just a typical day for elon musk. we will have more on that, next, this is bloomberg. ♪

emily: welcome back to bloomberg technology, i am emily chang in san francisco. elon musk remains hopeful that spacex will reach near global

coverage by august. ambitious as always. ed ludlow, we are getting new information about why. >> they send out tiny satellites into space for about a million dollars a pop. what we know is that a private helicopter flew into the restricted airspace just seconds before liftoff. the launch was immediately scrubbed. what we got was in elon musk tweet accusing glitters of having stricter controls, saying the areas that spacex required -- >> elon musk acting as if this is all just happening like

another day in the life. what did he say about the future of this in general -- of starlink in general? >> they just passed 69 active users who are using this internet system around the world. 12 active countries but he said they will have near global coverage. what is incredible is the economics of this. even though customers pay $500 for it, they will try to get the cost of that down. the system is working and it has very little agency, you can play high depth video games with it. the promise is the global coverage. emily: how many people who are connected worldwide would

actually be using it? >> elon musk describes the system as being the go-between between fiber and broadband. it is designed for the tops of mountains. that is who they are going for. they are doing deals with telecom companies, the two big telecom companies, this is something they can work cooperatively with selling their providers as well. >> thank you so much for giving us the roundup. we will wait for the new one to happen. moving on, vaccines have proven to become one of the best ways to curb the rise in cobit -- covid infections and get labs back to normal. in the united states, 54 percent

of the population has had at least one dose. the number of those that are vaccinated continues to grow but there are some who still are hesitant to get it. kristin, the delta variant, more people fearful, reminding people of the need to get vaccinated. there are still a vaccination gap, why? >> one thing we are seeing that is very concerning with the delta variant on the rise in the united states is that while there are many counties that are vaccinating large percentages of their population, there are a lot of counties in the united states were only 20% of people received their vaccine. we have this huge gap where there is a plateauing in the

counties were vaccination rates are low. those counties are not getting increasingly vaccinated even though the rest of the country is getting more vaccinated and that bottom fifth of counties could keep covid in circulation in the united states for a long time. emily: what is being done to accelerate getting this vaccine in the u.s. and abroad? kristen: it is tough, there is a push. i have spoken with people doing the vaccine rollout in places like arkansas and they talked about her targeting, working with community leaders to get people to trust the vaccine but the big hurdle is trust, that in these counties where only 28% of people have received the first dose of vaccine, there is not trust in the vaccine, there is not trust in the government,

there is no trust in the public health establishment. people are seeing their neighbors not getting vaccinated so it makes them feel more comfortable in that choice. if you live in a community where everyone else is getting vaccinated, you are more likely to get vaccinated. we have seen that trend continue throughout the vaccine rollout. emily: what is the vaccine split? what does it mean longer-term? kristen: the vaccine split is really scary. it means that you have these pockets of under vaccination. there are pockets where people are at risk for getting covid. it is not those communities that are at risk for getting covid. people don't just stay in their hometown, they travel around. as people travel around, it is more contagious in the u.s.. these communities could become

incubators for more future variants that could invade the vaccine. it is crucial that we would not trust people in these committees to close that gap where lots of people are vaccinating. they could hold all of us back, returning to normal life. emily: that is the reality. , thank you so much, -- reality, thank you so much kristen. moderna has said that it's vaccine has produced antibodies against the delta stream. this was a strain first identified in india and it has now spread to the united states. a digital education platform now valued at $3 billion as population exploded during the pandemic. we will talk to the ceo of the latest funding round.

that is next, this is bloomberg. ♪

emily: a digital platform just got a big boost. the top children's education app in the united states is now valued at $3 billion. the most recent funding round led by the private equity firm. the platform gained popularity during the pandemic as parents look for new opportunities to educate their children. i was one of them. joining me is age of learning ceo, thank you for joining us. it kept my kids engaged throughout the pandemic. thank you for that.

>> thank you for having me. what we saw during the pandemic was a huge spike in usage of digital education apps. people turned to us in huge numbers during the pandemic. we saw a rise in usage. a pretty significant rise. a lot of states have started going back to school and the use of rate dropped. kids continued to use abcmouse from home. emily: do you expect that to continue when school is back in session in september? >> hopefully they are back in session. we are meant to be supplementary to what kids are doing in school but we will see a spike as we always do during the summer.

it should hold a very well. emily: as a parent, i know many parents want their kids to be doing something productive and engaging with the world. what do you have to say to parents that are concerned about how much screen time their kids are getting and even if it is on what is supposedly a productive platform like abcmouse that is healthy for them. >> what we have learned is that with as little as 45 minutes per week on abc mouse that children make significant learning gains. those levels are well below what any expert recommends for maximum screen time. emily: you are also the top

executive, president of disney in japan. what other growth opportunities do you see? what is next? >> a couple of things, one is international growth. it gives me a little more understanding of the opportunities there. asia is a huge opportunity for us as a company. we are looking at india, south korea, vietnam. we have adaptive learning products that we are super excited about. math and reading that we are piloting right now in florida, texas and california. those are adaptive learning products. we are putting together

personalized learning path for every child. emily: any tips for parents if they are using abcmouse? any tips on how often to monitor their children? >> i think that children for the most part will want to get on abcmouse. most kids enjoy it. it is built that way. for a younger child, put him on for 15 or 20 minutes at a time. what we saw during the pandemic is that children that wrigley used abc mouse did not have problems. emily: that is good to know, we will keep our eye on you. that does it for this edition of bloomberg technology. tomorrow, crypto evangelist,

like joining us. -- mike joining us. also, mr. butterfield. this is bloomberg. ♪ ♪ ♪

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>> good morning, welcome to daybreak australia, i am haidi straz more -- haidi stroud-watts. >> i am shery ahn. the top stories this hour. the u.s. hitting a record high. here's remained that the delta covid variant will cause about a weakness for global markets. >>