caroline: from bloomberg world headquarters in new york, i'm caroline hyde. romaine: i romaine bostick. caroline: let's take a look, "what'd you miss?" another set of a tech earnings after the all meeting after the battle with growth just yesterday, apple warning growth would slow after posting record-setting sales. facebook and paypal also looking

at potential deceleration. we will focus on those numbers, including paypal payment volume topping estimates. it's a possible key point for the fed. we will get a deep dive there, but before that, earnings from paypal. romaine: this is confounding, numbers in the quarter beating here with net revenue at 6.2 4 billion active customer accounts , added 11.4 million. i guess the issue is that some of the numbers were right in line or just a touch light here and the forecast might have been lower than what folks were looking for in terms of active customer accounts for the year. it's a range they have given in the street was looking for about 54.5 million and four more insight into this, breaking down the numbers, we are bringing in our intelligence fintech

analyst, julie. great to have you here. julie: great to be here. romaine: obviously investors were looking for something more. what, exactly, were they looking for? julie: we have gotten accustomed to paypal having blowout quarters with the changes we have seen in digital e-commerce taking off playing into their hands. we have seen end-user growth, volume growth, and news services coming on board, so we have gotten accustomed to blowout numbers. but we have to keep in mind that two q last year was a good quarter for them. caroline: exactly, we saw some of the numbers borne out a little bit with a company running 30% on the year to date. but what about venmo on the future of payments in between

each other? julie: yeah, and venmo had some great numbers, one of their highest quarters yet, lots of activities going on in these payment apps. venmo is growing with more transaction and services. yourself you may have gotten a lot of offers for a venmo credit card over the last few months. that's doing really well and there has been great up take. it's continuing to hum. romaine: i am curious about competition here. felt like a few years ago, if you wanted to do something cashless online it was the only game in town and now apple pay has seemed to get out of its own way and you have even got some of the big me -- big-name banks involved. there are more options out there and i'm wondering what the selling point is for paypal going forward? julie: the size of its network and its international breadth.

no one comes close to their number of active accounts. apple pay is probably around 40 million in the u.s., to put it in perspective. paypal is pervasive. add to that 30 million merchant accounts and the two-sided network, it gets to be very powerful. romaine: i have to say, i didn't know that stat. given the apple dominance as a company in terms of the iphone user base, you would think it would have more. i'm curious, what makes paypal better. why would i use that over apple if i had iphone? julie: a lot of what has made paypal better is new services they have added. so, you are not just paying a friend or online. you can use the app for so many different things. mostly banking services. debit card, bill pay, crypto

investing is a hot topic and he soon you can do investing as well. caroline: take us there. it was the previous record from paypal because of the initiative they had. i folded that into the fact that their old ceo is now at facebook and they had a big grand plan for the dm, their focus on the cryptocurrency narrative, with the pushback that we are getting from janet yellen on all of this. talk to us about this. julie: they are interested in allowing their users to do whatever they want online and increasingly all these big companies are trying to help investors purchase crypto whenever they want and essentially interact with it in terms of payments and other kinds of opportunities. so, paypal is right there with it and other crypto and in the

first quarter they launched to the ability to pay with crypto. with the consumer merchant network you can now pay in a very integrated, easy way and it is probably one of the first applications to allow that to happen so seamlessly through the wallet. caroline: it will be so interesting to watch them fight over the same turf, not to mention robin hood going public tomorrow. our next guest, saying it's time for the fed to directly serve main street. a federal reserve economist joins us next to discuss how the fed could become a bank for the people and how they could be using currency to play their part. this is bloomberg. ♪

caroline: we have just been talking about paypal, but let's look at what facebook gave us as well, revenue beating average estimates. up 56% year on year with advertising revenue climbing higher end monthly active users up 7% where analysts expected daily active users at 1.9 billion. but this fact that growth is likely to slow up and the fact that the stock rallied such a significant extent this year, there's probably a little bit of profit taking going on. romaine: you mentioned facebook

here, talking about the yellen concern, yellen, knowing that the treasury has a working group that is considering what potentially to do in this realm and whether the treasury or more specifically the fed should be involved. it's interesting, if joe weisenthal were here he would probably have something more introspective to say, but he pointed out this great article this morning where the title was basically what if the fed worked for the people in this whole idea of the fed just lending directly to the people. it sounds like a strange concept but claudia is joining us now to talk about this from the jane family institute, a senior fellow who is a former federal reserve economist and all-around great person, so explain this to me. a lot of people fear i guess the idea that facebook or private companies may sort of move into this staple of the realm where they would somehow usurp the

viability of the dollar, if you will. what does the fed being involved with this have to do with it? >> there's a lot of reasons the federal government should jump in. i mean, technology comes from the iva sector. it makes sense that these new technologies, these ways of delivering money and financial services didn't start with the fed, but they can take it and put it in a way where when it goes to the mass-market and americans, everyone has access to it, it's a framework or there is privacy, transparency and ease-of-use. i think the fed can move into this space. but it is a space where it would be the best if they go with guidance from congress, a clear plan. like, this is not a fed goes it alone and spit calls how we do this. caroline: you wrote very

eloquently about how the fed could be given authority to set up fed account. every american would have one and therefore what we saw in 2020, that need to get aid quickly into the bank accounts of people could be far, far more efficient and run more easily when it comes to the payroll protection program with stimulus checks. how much does this that narrative? cluadia: i think this is where we are at a moment where there are many different directions you can go. there is a lot of different ways to think about how to solve this problem. the problem is that congress does not have a reliable way to get money out to people when they need it. the federal reserve has a pretty reliable way to get money to banks when they need it. it's just recognizing that there's a problem. stimulus checks are great, i have done a lot of research on it, they work.

if the money doesn't get to a lot of people and misses those who need it most, don't even bother signing the legislation. it's about solving a problem and the fed being the pipes, right? not just creating it for the sake of bitcoin or cryptocurrency. romaine: absolutely. talking about the fed being the pipes, a lot of fed ceos would bristle at that concept and there are folks in the dysfunctional world of washington that don't want to see more of that power or those pipes so to speak funnel directly to or from the government in any way, shape, or form. particularly not from a federal reserve that has a lot of independence and not as much oversight as some would like. how do you respond to that? cluadia: fiscal relief is a

choice. there are individuals that don't want to see big government or programs like this expand, so the fact that they don't work and we don't put research into administering them, that's not entirely an accident. i've said it before, members of congress know that if the job goes to the fed, they will do it well. the fed is highly effective and some people don't want it on well. it's a tricky political space and i said, like i said, the fed doesn't go here without congress saying they'll do it. caroline: previously at jackson hole we have had big pieces out there. i remember mark carney talking early days about crypto in the space and that central bank policy. it was almost his farewell on his exit to the bank of england. he put some of those thoughts out there. do you think we will get further talk on that? cluadia: i don't know about

jackson hole, but we are moving to a space where it isn't big picture ideas only, we are hitting nuts and bolts. financial services had a big good hearing yesterday on central bank currencies and the people that were there, people like julia coronado, they are getting down into the details of how we do this. that's what happens when we start moving towards this not being just a pipe dream. it might be something that we do. romaine: of course we talk about that overton window and append -- pandemic has provided a big opening for a lot of the experiments around monetary and fiscal policy, but with regards to like i guess what sort of gets us there, claudia, there is a sense that the moment has passed. that if we aren't in a crisis people are not willing to consider big, bold moves. coming out of a crisis and into a more stable economic environment, how do you think

this can be sold in that type of environment? cluadia: well, we are not out of the crisis yet, so there's that, but you are right, it's tricky. in a crisis we think big and do things that haven't been done before. we saw a congress that put out $5 trillion in relief and a year with a federal reserve pursuing a new framework that really brings the maximum employment mandate on par with inflation. as someone who worked at the fed for over a decade, high can hardly believe what we are experiencing right now in terms of the relief, but it's commensurate with an absolute crisis of a pandemic that we have lived through. so, i don't want to say what's not possible, because frankly in some cases, not enough, policymakers have risen to the challenge and they have got to keep knowing. that is what is hard and frankly it is disheartening when you look in at the news coming from

washington, d.c. often. joe: -- caroline: black unemployment remains at a level of 9% white unemployment remains at 5% in the united states. looking at what the fed is doing to innovate a focus to pivot more about inclusion, really, in the expansion of the economy, is it doing enough when you write, so much in the piece, about inequality and basically where we still stand on it in the united states. cluadia: so, i think the fed gets it. i watched the press conference today and jay powell brought into the discussion so many groups. the one that struck me was he talked about caregivers over and over and how they have been suffering in the pandemic and frankly the risk of delta puts them in a place where they are not ready to go back to work, not ready to put their kids in. i mean this is not the federal reserve that existed even two

years ago. to have this much understanding, the mandates are national. they are about overall economy. but, the more we look under the hood and think about what's really happening on the ground, that's really important, for the fed to know when we have got the goal. romaine: it's a great point, talking about how much the fed has moved, particularly under jay powell. i do want to get your general opinion here on jay powell. this term is up for a lot of debate now and whether the biden administration and the folks in congress will back him for a second term. would you like to see him stick around? cluadia: i would like to see that but what i would most like to see is the fed committed to a dual mandate. he's not the only one that can lead us to the finish line, but that is where we have to go.

caroline: we want to thank you so much, claudia sahm, on all things fed, fed coins, fed account. jay powell talked about the risks that still lie in the delta variant and we just got breaking news that the texas cases has -- have hit $10,000 a day since february and we will keep a close eye on how the use effect the rest of the united states. from new york, this is bloomberg. ♪

romaine: all right, pretty uneventful day for markets. we saw most of the indexes close higher on the day because of the earnings that we got yesterday and this morning, including google. there were earnings after the bell tonight, including qualcomm . they were higher on the day. facebook, lower. paypal, lower. lambda research, also lower.

concerns not only on how they did in the recent quarter but also against how they will do going forward in the face of a delta variant that seems to be taking a bite out of economic activity. real yields this week are at record lows. caroline: signaling not just inflationary pressures, but growth, the fact that the u.s. has not managed to move the bar significantly in a long term. meaning significant pressure, it's a rate of change as taylor would say when you look at a significantly negative real yield. caroline: i just -- romaine: i just don't think it's good. i mean, we did put a red box on it. it should've been a green box. caroline: that feels do mongering for us. katie, i know that you think this is pretty important, what's happening with negative real yield.

did powell pooh-pooh it? >> he did talk about technicals and i felt really validated. he asked directly what you make of the bond market move and he said that there is not a consensus, real yields have gone down and that could say something about sentiment and there were technical factors where you could put things you can't explain, really describing what the mood has been in the bond market. interestingly, we learned about the delta variant, he didn't talk about it that much but we did learn that it shouldn't cause as much economic damage as other waves. romaine: and now you are getting slightly different messages out of the bond market versus the equity market. pushing back from that, one big rally and you are back over it. let's talk about investor sentiment for a moment. record highs, you basically have the memes coming forward, stock

lords coming. this is the barometer as to whether you will buy into something that was so tied to euphoria and if the euphoria might dissipate. i don't know. >> if you believe it was coming back, feels like it has died down a bit. romaine: do you believe? >> no opinion, just a journalist. [laughter] but it makes sense to get a piece of their ipo tomorrow and you will be able to, 35% of shares are just for retail traders, which is amazing. so we will see but if you look at the broader ipo market it's not hot right now. if you think about the recent ipo's like umbel, oat milk is still hot, still exists. caroline: throwing some shade on their. [laughter] >> i'm not huge on oat milk.

romaine: does it have about? -- a moat? >> i don't know. milk? [laughter] it's pretty tough going for public companies right now. caroline: but what retail investors are now buying, its chinese stocks, alibaba, sold off, retraining their focus. >> it's pretty amazing and like you said, now it feels like boring index fund. a spy etf. regardless, ac it, this appetite among retail investors and the volume that we see will be remembered and robinhood is a testament to that. caroline: we love having you

here. thank you. meanwhile, that does it for "what'd you miss?" romaine: have a great evening, everyone. this is bloomberg. ♪ bloomberg. ♪ and there you have it -

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>> from the heart of where innovation, money, and power collide, this is "bloomberg technology" with emily chang. emily: i'm emily chang in san francisco and this is "bloomberg technology." facebook earnings are out and the social networking warns that growth could slow this year when it comes to revenue. user numbers are in line, but investors