>> from the heart of where innovation, money, and power collide. in silicon valley and beyond, this is bloomberg technology with emily chang. emily: this time, twice as long.

the head of the fcc calls for more clarity on the taxing of cryptocurrency. we speak to one of the earliest investors for his outlook on the regulatory right ahead. and ransomware attack set an all-time high with new technology provinces helping customers get their data back without having to pay a cent. a microsoft board member will weigh in on the rapidly evolving cyber threat landscape. we'll get to all of that in a moment, but first, a volatile base in the markets. >> it was a little bit choppy because we started to have markets start off on a risk off tone. at the end, they realized that this has been in the works for a while. it isn't exactly new news. the s&p 500 ended in the green. big tech in the green as well. you see the one-year charts

having to do with monster gains today. today in particular, you ended up with cyclicals taking a little bit of an undertone. this will be a really crucial piece. the technical signal tells you when the time to buy. this has been the road to show that there could be a point where we start to attract the buyers. this is what is happening in today's market action. we have a lot of underperformance in the subsectors. like i said, it is underperforming. this is actually in the green. we know the demand story and china is under some pressure. a little bit of a mixed session.

>> strong second-quarter earnings, and bullish with supply constraints remaining well into next year. i know you will talk about this later in the show, and yes, antitrust regulators are filing a new lawsuit. but facebook seems to be completely resistant. look at the shares. i want to focus in on netflix as well, up 4%. the biggest jump since march. and it's on price hikes. netflix is raising prices in europe. and today's game takes netflix just into positive territory. and facebook, look at how they

performed year-to-date. it continues to outpace the s&p 500. we talked about concerns for the outlook in terms of advertising and user growth. and now they are coming back for a second bite of the apple. something to dig into with investors over the next few weeks. emily: these regulatory overhangs don't seem to impact facebook much if you look historically. ed, thank you so much for that round up. we will take you to the lawsuit now. u.s. antitrust officials have refiled the monopoly suit against face book. a judge dismissed the suit back in june saying the agency failed to provide enough details to support the claim that facebook has a monopoly on the social media market. a new suit alleges facebook violated antitrust laws by buying instagram and whatsapp to eliminate them as competitors.

the ftc comes back month later with similar arguments. what is different about this new lawsuit? >> the ftc provided some new details, really getting at that question. is facebook a monopoly? one was actually redacted. this is how much time facebook's active users are dominant in the market space. a lot of the lawsuit made some familiar claims about facebook's acquisitions of instagram and whatsapp. about facebook requiring third-party apps to connect to its platform to say they will not compete with facebook. these type of practices are under scrutiny. they came up in the lawsuit today.

emily: facebook said there was no valid claim that facebook was a monopolist. that has not changed. it was reviewed and cleared years ago, and the platform policies were lawful. what i thought was interesting about this suit is the way they differentiated facebook from twitter using tiktok. the content generated is meant for a more public audience, where facebook is more targeted and personal. and therefore, facebook has a monopoly in that kind of a market. what does that say about lena conn that she came back with this so quickly? >> we know conn has been a leading advocate for a more progressive vision of antitrust enforcement. she is the one that argued the traditional measures of competitive market, consumer prices going up, is insufficient

to capture these tech giants which are often operating free services. that you came back with the suit quickly is not surprising. it is what supporters in congress and beyond likely expected. and it will be an interesting test case to see if they can get her agenda accomplished. i think depending on which direction, congress can be nudging in one direction or another. do our current antitrust laws -- are they modernized enough and up-to-date enough to capture proper enforcement in the technology industry? >> we will be following to see how that plays out. bloomberg will continue to follow reporting on this.

apple has closed one of its stores in south carolina after 20 staff members were exposed to covid-19. stores of the charleston location typically have 70 to 80 staff members suggesting about a quarter of employees exposed. the situation underscores the company's challenges to get those things back to normal. ibm has announced it is closing stores in new york. they have plans to reopen other u.s. locations by september. coming up, initialize capital managing partner gary chan is with us with his thoughts about tighter crypto regulation in washington, next. this is bloomberg. ♪

emily: how should digital assets be regulated? a top securities regulator says existing u.s. regulation is a solid precedent for rules. he said, new technology should not cause us to change the fundamental protections in our securities and other financial markets. and in regards to the crypto provisions in the u.s. infrastructure bill, he went on to say that the clarity around taxation is a good thing. what could regulation for crypto look like? let's bring in gary chan, one of the earliest investors. what is your take on the recent comments from jay clayton, former head of the sec, the current head of the sec, and taken in tandem with this infrastructure bill?

>> the most surprising thing about the infrastructure bill to me is how ugly this warner amendment almost killed modern innovation and crypto in the united states. the prior proposal is very fair to validate programmers, which is very important. one of the things that come to my mind, watching the warner amendment was actually -- there is a very powerful lobby that is bitcoin maximalist. that theory has been out. nft's are huge and huge growing market. it is just amazing to see bitcoin maximalist him -- maximalism is alive and well in

2021. emily: does it concern you? >> what is weird about this is it is actually religious. i see it from both ends. it is an argument for who gets to go to heaven. is it bitcoin maximalist, e thereum, or one of the others we haven't heard of yet? for me, i think the closest analogy i can make is that ethereum and things like it, it is more like a company. bitcoin doesn't change. but to take this analogy further, i think being a maximalist to me is like being a commodity trader that refuses to believe there are new teams working on new software attacking the market. the sec for 10 years funded hundreds of companies. i know that couldn't be true.

i am not an ethereum maximalist, that commodity traders should not exist -- i think there is a deep value for bitcoin. all i'm saying is that think protecting proof of state, validator's, and programmers that will create the next digital future is very important for us to keep that sort of innovation in the united states. emily: i recently interviewed the man recognized as the inventor of ethereum that was fairly critical, definitely skeptical of jack dorsey's plans. somebody who we think of as somebody who understands what's going on here. listen to what he had to say. >> i think a lot of the projects want to do this, right? i think a lot of them are realizing that the centralized

focus of power -- so much of it is not athletic. -- anesthetic. emily: a short snippet of what he had to say. i know you have been in the attack on this. what is your take? garry: i think dorsey is new to the bitcoin world. and i'm not here to actually judge people based on their faith. it is just sort of surprising. jack dorsey is an amazing software engineer and happened to be the core founder for two of the biggest most important things. this is for identity and for thoughts. i can see where that religion comes into play. when you have that full and

complete identity that can be totally decentralized, it happens to be the biggest threat for what jack holds very dear to him. i think it sort of makes sense that he might be a little bit threatened by the prospect of ethereum and things like it that are programmable money. you can do a lot of things that you really have to bend it backwards. emily: what do you think about bitcoin versus etherium, especially given that ethereum will be going through major upgrades? garry: i am really impressed by ethereum. it is a really big moment, showing that there are software developers in the community that can create this ultrasound money. at the same time, there are critics of that community. if they can change it to be

ultrasound, they can change the other way, too. that is a pretty sound argument. for me, it is better to be agnostic. it is up to software creators to enable platforms that are useful. and for me, i can't look at nft's and i can't look at the stream of software engineers that come into our offices every day and say that ethereum isn't the platform to focus on and to beat right now. emily: meantime, we got some surprising numbers from robin hood this week that they made more money on crypto trading band stocks and options combined. a ton of it coming from doge in particular. what do you make of that? is that a concern for their business model? garry: i'm not a fan of doge. it's just not a better cryptocurrency than a lot of the others. there are so many others that have better characteristics. the biggest thing to me is

whether you go on robin hood -- i know that they wanted to add while it's -- wallets at some point. i am a long-term holder of coinbase. but a lot of people talk about decompression. they worry every other day about people saying we are going to come after coinbase. one thing to note is let's take a look at custodial ownership of these cryptocurrencies. there are hacks every other day of centralized and decentralized exchanges. this would be something that enables that increase. in enables billions of dollars to be able to participate in that. this is what coinbase is doing for some trails and end of business.

emily: always fun to talk to you. there is so much more we want to get to and we will say that for another time. toyota is slashing output due to the global chip crisis. we will hear from the toyota vice president of sales next. this is bloomberg. ♪

>> we believe the worst is passed. >> it is very fluid. >> this will run into 2022. >> the chip shortage has an effect on capacity. the actions have been taken by our suppliers and this will also go away. >> we think we will probably be

into it mid-22 before we start to see supplies renowned. >> we have seen shortages compared to our initial plans. emily: this is front of mind for carmakers and investors. the crunch is a big reason that the auto company has cut production for the month of august. it is also facing other supply chain issues for southeast asia and europe. carter spoke earlier with my colleagues guy johnson and alex. >> we have the supply chain disruption very well over the next four months to six months. due to disruptions we are seeing that may have to announce overnight during the month of

august between the 60000 and 90,000 units. this is far beyond microchips. we are seeing a wide range of supply disruptions do largely -- due largely to the chip shortage. >> you have done a good job of managing that. you have been flexible and poor needed. you had a really good communication strategy dealing with them. under strain is the inventory program, how flexible is it in terms of being able to get vehicles to one place or another where they can be sold to manage that inventory that they do have

as nimbly as they can. >> we communicate extremely well with our dealer and retail partners. what the frustration is his natural demand from the industry remains to be very high. we are projecting demand without supply change disruption -- supply chain disruption. as we have been seeing over the last 60 days, the industry sales are coming down to around the market where the inventory is depleted. we were able to sell 225 thousand units because our 15 plants in north america were able to produce.

and we can have a customer for throughput. the supply chains in southeast asia. alex: it feels like covid is getting pushed out and pushed out and it might often -- might not even be there at all.

>> we are proud of this in north america. we are up and producing. we are socially distant. we are returning to mass wearing. we do have a very solid plan in north america upon second and third tier suppliers coming out of asia and europe. that is really the issue of this problem. emily: executive vice president of sales bob carter there. microsoft is investing in the startup software rubric to help customers recover their data. i am joined by microsoft independent director john thompson for an exclusive interview, next. this is bloomberg. ♪

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emily: welcome back to bloomberg technology. softbank offer to sell $2.2 billion of its stake in the company. this according to a source that says block trade was dusted for goldman sachs. ed, doordash just reported a pretty strong quarter. is softbank trying to address some of its own losses? ed: the shares the biggest drop

since early june and you can see that on my screen. the psychology of the market comes into play. a big investor dropping big chairs, other investors starting to sell. this is an issue of mechanics. when you sell that many shares, you for the market with supply and drive the price down. take a look at how stocks perform. the story has been strong. it has been stickiness with food delivery. my favorite buzz word. it has staying power. shares are down from a february high marginally, but this is much more a story about soft make. softbank has been on a selling spree. they trimmed their stakes in these companies -- facebook, uber, doordash, netflix. the question is why and who is behind it? bring up a picture of the most important man in the world of private investment startups. for so long, he was against

liquidation and against cash. but they want to infuse new cash into startups. what we are seeing is this change in their own psychology about wanting to exit and that is what's more at play. it is not an isolated incident but a run of position trimming that we see through softbank throughout 2021. emily: in the meantime, it has been quite a year for ransomware attack's. it has spread to 1500 businesses. as more companies go to the cloud advantage -- and manage several workforces, it is more critical than ever. microsoft is investing in startup software rubric. -- rubrik. i want to bring in rubric ceo

and microsoft independent director for an exclusive interview. it has been an incredible year. unprecedented, really. how do we even start to stop these ransomware attacks from happening? >> it has been an unprecedented year because although the digitization and isolation -- all of the digitization and isolation creates a window for attackers to get in. and you need a strong strategy to be able to wake up from that. it is a zero plus framework. that is what microsoft and rubrik has focused on. from prevention detection, rubrik is coming in for medication -- mitigation. emily: let's talk about the

payment part of this. how do you enable customers to get their data back without paying? some of these customers are paying millions of dollars. bipul: it's about how you get your applications back up and running and how you get control of the data. you need your backup to be rock solid. that is a core part of the strategy. how do you prevent the backup from getting infected? and it has not been touched by ransomware, that is the key. it is gathering the availability of data. and it is how our customers will want to pay. emily: microsoft itself has been a target of cyberattacks in recent months. what does microsoft get out of the strategic investment like this?

>> rubrik and microsoft have been partners for quite some time. in the year 2018, microsoft announced rubrik was their top partner that year. what has evolved is this notion of zero trust and the concept that more and more people are going to move workflows and data to the cloud. creating a partnership with rubrik was a very important element of what microsoft is trying to do to make sure that people know its platform is open to all apps and all services. emily: there are a number of examples where you help the victims. the city of durham, north carolina. a big australian manufacturer. they get their data back without having to pay. once the attack happens, talk to us about the steps that are taken in order to do this.

and how often the perpetrators can be brought to justice. bipul: once the attack happens, we go back to see if the backup is intact. two out of three legacy backup platforms are active. that is where rubrikes in. we are guaranteeing recoverability to go in and look at your backup essay, tell me -- and say, tell me if the backup is intact. is there sensitive data involved? and other places where my customer data is going to be exposed. and we start to do the recovery where there is a code word.

it is a very cumbersome process. it is the ability to identify the attack and getting that back up and running. and then they don't have to pay any ransom. emily: you have been in the tech industry for a long time. you are the ceo of symantec. -- you were the ceo of symantec. what is it like compared to years past? john, can you hear me? john: yes i can. emily: go ahead, john. john: it is unprecedented. did you hear that? emily: i did, unprecedented.

john: when i joined in 1999, the environment was relatively small. but as people have grown, the companies have grown exponentially. it is more about the server and the data that is being stored. and that has created an enormous threat opportunity for every business. and quite frankly, every individual online today. emily: so what is next? what should we and what should companies see? what do they need to worry about at this point? john: there is a simple solution or concept that has been brought forth. zero trust. it is relevant today. know who the subscriber or color is. -- caller is. know where the application services being used.

yesterday i got a ransomware notice from zoom suggesting i needed to pay my bill. i don't have a zoom bill. it clearly was a threat to me. and just like everyone else gets every single day. emily: bipul, we have seen cryptocurrency become a bigger player where attackers are asking to be paid in cryptocurrency. how does that change the game? bipul: cryptocurrency really liberates money and makes it available to anybody around the world. but the side effect of cryptocurrency that the bad guys are utilizing to get money and getting it transferred. the thing is that as we bring new services online, the bad guy

finding new services to use. what we need to do is we need to have these prongs and a framework and how we use applications and data. and the individual detection prevention is not really effective. is my data protected? so that it can utilize all kinds of technology, including crypto to protect your data. emily: all right. certainly something we will continue to follow and cover as these attacks continue to pop up. rubrik ceo bipul sinha, microsoft director john thompson, thank you for joining us. coming up, fashion designer's appeal to the modern consumer in a new way. joining me next is a ceo to talk

about streetwear and collectibles. this is collectible -- this is bloomberg. ♪

emily: amazon is reportedly looking to expand into an area where it has been a disruptor. brick and mortar retail, the e-commerce giant plans to open several large department store style physical retail outlets in the u.s. this would be in addition to the bookstores the company currently has and whole foods. stores are expected to be in

ohio and california and would extend the company's reach of clothing, household electronics, and other products. meantime, amazon is also in favor with wall street analysts. all 55 of them have a buy rating . the rare blanket bullishness has been put to the test in last month's unexpectedly weak sales forecast that complicated the company's growth story. shares tumbled 50% from the july peak and many analysts see long-term tailwinds. co-labs reigned supreme -- collabs reign supreme. out of 10,000 apparel and accessories, 25% are collaborations between two or three brands. think ug-north face -- gucci and northface. at the intersection of

high-fashion and streetwear, i'm struggling to figure out how to make a bucket hat look cool. but somebody is doing it. these design collaborations are necessarily new. what is different about the collaborations for today? >> what is driving it is the next generation consumer looking beyond the brand for inspiration. so they are looking to the influencer, the celebrity, and you see brands entering into these unique collaborations that appeal to the next generation consumer releasing great products that the consumer is really attracted to. emily: let's talk about the draw, the attraction to stockx.

what are you putting on it that makes it desirable? >> stockx is a trusted global platform for consuming and trading current culture. current culture is very much designed by the consumer. typically they find axis -- access that they can't find anywhere else. it's above what they would get normally. it is a flywheel that works on both sides for the consumer and the brand. emily: crocs, birkenstocks, i

know how to pronounce those. i remember them from high school. >> crocs as an example, collaboration with justin bieber. bad money, post malone -- they were 100% year-over-year. birkenstocks, very cool when we went to college. up 600% year-over-year, collaboration with brandon susie. again, leveraging and drafting off of the steel went to create something new out of rands that maybe be forgot about. -- brands that may you forgot about. -- brands that maybe you forgot about. emily: there is a push towards sustainability and the circular economy, away from fashion.

is that here to stay? >> the macro trend driving our business is that the next generation consumer is changing their thinking about what it means to invest today. they are looking at physical assets that are actually more like investment assets. they are seeking at culturally relevant items in the physical world and are making investment decisions around that. it is certainly a new trend. when you look at the areas of sneakers, collectibles, or apparel, these consumers look at an opportunity to invest. we are opening up an entirely new addressable market. companies like stockx can provide meeting that demand. emily: talk to us about the real value. how do we know the value of investing in a piece of clothing or a pair of sneakers versus a stock? >> stockx was built on a

platform providing transparency for the pricing of these items in current culture. if you come to the platform, you are able to see, in real-time, what an item is trading for. and you are able to make an investment or a purchase decision based on that price history. there is third-party proved to be able to support this. had you been an investor in a lot of these areas of collectibles or sneakers, these areas of physical goods, you would outperform the s&p. in majority of the adults purchasing a sneaker today, 40% of them are making an investment decision. that market pricing being an investment is, again, a driver for growth into the -- in the industry. emily: could in ft -- in ft's --

could nft's have a role in your business? >> sure. a lot of times we think of digital assets as they are connected to the physical world. when we think about the evolution of agile assets, whether it be tokens or in ft - -- or nft's, it creates an opportunity to invest or trade in things that people are passionate about. and you see a lot more brands that are taking advantage of this new opportunity. when you think of this next generation of consumer, it's not just items with sneakers or collectibles, it is assets and digital currencies. this is on the back of these digital trends. emily: i learned so much today. thank you for stopping by, the ceo of stockx.

coming up, how a food delivery start up is delivering an ipo frenzy in india. they had a special report from bangalore after the break. the startup bird has jumped above pre-pandemic levels. indicating compass -- customers are emerging from the pandemic lockdown and hopping on electric scooters once again. santa monica-based bird is in the process of going public through a stock merger deal announced back in may assigning the company $2.3 billion. this is bloomberg. ♪

emily: microsoft is raising its prices on the suite of business products.

365 basic will jump 20% to six dollars per user. the high-end version will see a four dollars bump user. microsoft says the hike is the first substantive cost change. the ship will take effect -- shift will take effect march 1 but won't include educational or consumer products. india is on track for a record year of ipo's. one point $8 billion in funds raised so far. -- $1.8 billion in funds raised so far. the start up in july despite losses and little prospects of turning a profit in the near future during the source. that has others similarly thinking

. quick to there would be a lineup of startups going for ipo -- >> there would be a lineup of startups going for ipo. [indiscernible] talking about an ipo that year. the startup is backed -- [indiscernible] and that would also, again, come in october. it would be a large education startup. [indiscernible] many see that india could have a couple ipo's in the next few years. changing the stock market

appetite including the insatiable appetite of investors. not a lot of us have a path to profitability. but india has a huge rush of it service companies coming to the public market. in some of these companies are not the most valuable. it is the second largest company. this could be india's ipo marke t. emily: that does it for this edition of bloomberg technology. tune in tomorrow where we will joined -- be joined by footlocker ceo and the head of

do a lingo learning app. -- duolingo learning app. i'm emily chang and this is bloomberg. ♪

>> a very good morning and welcome today break astride you. i'm already stressant sydney. -- and welcome to "daybreak australia." i'm heidi strauss in sydney. the biggest weekly stories since january, a brutal route in asia. >> and credit