>> 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 will speak to one of the earliest investors in coinbase for his outlook on the regulatory right ahead. and ransomware attack's at an all-time high. but in new technology promises to help customers get their data back without having to pay a cent. john thompson will weighing in on the rapidly evolving cyber threat landscape. all of that in a moment, but first, a volatile day for the markets. kriti gupta, take it away. kriti: it was a bit choppy. markets started off on the risk-off tone, a lot of them digesting that paper talk, at the end of day realizing this has been in the works for a while. this is not exactly new news that is. . where you saw the buy the dip mentality. big tech in the green.

you can see that one year chart, this has to do with the mustard gains. today they ended up higher. you saw cyclicals taken undertone. the vix is down on the year but spending the second day above the crucial 20 handle. take a look at the nasdaq golden dragon index. a technical signal that tells you when the time to buy is. right now it is telling you it is oversold. this has traditionally been the road to show that perhaps there could be a point where they start to attract more buyers. the question is do we see them tomorrow? which brings me to today's market action. we saw in the subsectors a lot of underperformance, a lot of intraday, the golden dragon index, like i said, underperforming. but this company is in the green which is interesting given their exposure to china. from the macro outlook, a mixed

session. for the macro outlook, let's get to ed ludlow. ed: nvidia, it really strong second-quarter earnings. a bullish outlook for the third, quarter saying that demand for semiconductors is strong but supply strains remain into next year. facebook, i know you will talk about this later in the show, down 0.1%. f.t.c. trust regulators filing a new lawsuit after the last one was thrown out in june. but facebook seems resistant to any concerns about regulatory. action and i want to focus on netflix as well, up 4% thursday, biggest jump since march, basically on price hikes. the report out saying that netflix is raising prices, particularly in europe. and a little tidbit for you, emily, today's gains take netflix positive for year-to-date, cap 0.5%.

let's look at how facebook has outperformed. it continues to outpace the s&p 500. we were talking about concerns about the outlook for facebook when it comes to advertising and user growth, and now we have the f.t.c. coming back for a second bite at the apple -- shares don't seem concerned about that. emily: right. these regulatory overhangs don't seem to impact facebook much at all. thank you for that roundup. i want to dig into the u.s. antitrust officials have refiled a monopoly suit against facebook. if federal judge dismissed the original suit in june, saying the agency failed to provide enough details to support its claim that facebook has a monopoly in the social media market. the new suit alleges in facebook violated antitrust laws by buying instagram and what's up in order to eliminate them as

competitors. our guest joins us. naomi, this comes a couple months later, similar arguments but this one is twice as long. what is different with this lawsuit? naomi: the f.t.c. provided some new details getting at that question of, is facebook a monopoly? there were some new statistics. a lot of it was redacted, but they made claims around how much time facebook users start spending on its platform as one measure to prove that it really is dominant on the market. a lot of the lawsuit made familiar claims around facebook's acquisitions of instagram and whatsapp, about requiring third-party apps that connect to its platform to say that they are not going to compete with facebook. these kind of practices have been under scrutiny, and they came up in the f.t.c. lawsuit today.

emily: now, a facebook spokesperson saying there was no valid claim that facebook was a monopoly and that has not changed, our acquisitions of instagram and whatsapp were cleared years ago, and our platform policies are lawful. i thought what was interesting about this suit was the way they differentiated facebook from twitter, youtube and tiktok, which are more public-facing content. while facebook is more targeted, more personal, and, therefore, facebook has a monopoly in that kind of market. what do you think it says about lina khan, that she came back with this, and so quickly? naomi: obviously, lina khan has been a leading advocate for more progressive vision of antitrust enforcement. she is the one arguing that, the traditional measures of competitive harm, which is, do consumer prices go up, is

insufficient to really capture these tech giants, which are often offering free services. so she came back with a suit this quickly -- i think it is not surprising. it is what her supporters in congress and beyond were likely expecting. whether she succeeds will be an interesting test case to whether she will be able to get her agenda accomplished. it will also give, depending on which direction it goes, it will give congress some nudging in one direction or another to get at the question, do our current antitrust laws, are they modernized, up-to-date enough to capture proper enforcement in the technology industry? emily: we will be following to see how that one plays out. facebook had asked -- to recuse herself from this together suit, but the f.t.c. said it would not do. we will continue to follow your reporting on this.

meantime apple has closed one of , its stores in south carolina after more than 20 staff members were exposed to covid-19. the iphone maker declined to comment. the charleston location typically has 70 to 80 staff members suggesting about a quarter of employees exposed. the situation underscores the company's challenges to get its retail operations back to normal. and late ibm has announced it is thursday, temporarily closing stores in new york. however, the company has stopped short of delaying plans to reopen other u.s. locations by september. coming up, gary tan is with us. his thoughts on the tighter crypto regulation in washington, next. this is bloomberg. ♪ emily: how should digital ass ♪ ♪

emily wish 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 currently in the u.s. infrastructure bill, clayton went on to say that clarity around taxation of cryptocurrencies is a good ring. so what could regulations for crypto look like? let's ring 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 new infrastructure bill that sets up crypto to be regulated

much more broadly? gary: i think the most surprising thing about the infrastructure bill to me is how ugly this warner amendment actually almost killed modern innovation in crypto in the united states. the prior proposal was actually very fair to validators, specifically programmers, which is very important. one of the things that come to my mind, watching the warner amendment almost pass, was actually, there is a very powerful lobby out there that is bitcoin maximal list. that is fascinating. it has been seven years since ethereum has been out. nft's are huge and huge growing market. billion dollars in crypto sales alone. it is just amazing to see bitcoin maximal is him is alive and well in 2021. it is unbelievable.

emily: does it? gary: what is weird about this visit is actually religious. it is sort of an argument for who gets to go to heaven. is it did quite maximal lists, or ethereum, or one of the other points that we haven't even heard of yet. , the closest analogy i can make is that ethereum and things like it, that is more of a company. bitcoin does not change. but to take that analogy further, inge bitcoin maximal list to me is that being a commodity trader who refuses to believe that there can be two companies, teams working on new software and attacking new markets. i have been a vc for 10 years and seen hundreds of companies

reach market. i know that can be true. i am not an ethereum maximalist, i am not going around saying that commodity traders should not exist. i think there is real value for bitcoin. all i am saying is that i actually think that protecting proof of stake, protecting validator's and protecting the programmers who are going to create the next digital future is very important for us as americans to actually keep that sort of innovation right here in the u.s. emily: i recently interviewed the man widely recognized as the inventor of ethereum, v telik of uterine -- vitalik buterin, who was very skeptical of jack dorsey's de-fi plans, someone who we think of as someone who really understands what is going on. listen to what he had to say. >> i think a lot of the projects what to do this. i think a lot of them are realizing that being a

centralized focus of our and having control of so much of everyone's data and all these things, it is not just an asset, it can also be a liability as well. emily: just a short tidbit of what he had to say. what is your take of the criticism and whether there something there? garry: i think that dorsey is an adherent to the bitcoin world. i don't begrudge -- i am not here to judge people based on their faith. it is sort of surprising. jack dorsey is an amazing software engineer. he happened to be the cofounder of two of the biggest most important things in our society. i mean, twitter as a platform for identity and thought, and square for payments. i can see where that religion comes into play. when you have a fully

determined identity that can be centralized, that happens to be the biggest threat to actually what jack holds very dear to him. and i would not begrudge him that. i do think it sort of makes sense that you might be a little frightened by the prospect of ethereum, and frankly, things like it that are programmable money. they can do a lot of things. you really have to bend over backwards to deal with bitcoin. emily: what do you think about bitcoin versus ethereum especially given that ethereum is going through all these major upgrades? garry: i am really impressed by ethereum. 1559 was a really big moment showing that this group of people, software engineers in a community who can actually evolve and create this idea of ultrasound money. but at the same time, there are critics saying, if they can change it, they can change it the other way too.

that is a pretty valid argument. i think it is probably better to the agnostics. the reality is it is up to the creators to create platforms that enable it to be usable. i can't look at de-fi, i can't look at nfts, and i frankly cannot look at the stream of really smart software engineering -- every day and say that ethereum is not the platform disorder focus on right now -- is not the platform to sort of focus on right now. emily: meantime, we got some numbers from robinhood this week. they made more money on crypto trading than stocks and options combined, a ton of it coming from doge. what do you think of that? garry: i am not a fan of doge. there are just so many others with better characteristics.

the biggest thing to me is when you go on robinhood, i know they want to add custodial wallets at some point. i am a long-term holder of coinbase. but a lot of people talk about decompression. every other day, you hear about people saying, we are going to come after coinbase. but 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 is not easy, to have custody, to have insurance, and to actually be something that enables that 13x increase in de-fi's, to enable billions of dollars in nfts to participate in that custodial wallet. you need what coinbase has done, and what coinbase is doing with coinbase cloud. emily: garry tan cofounder and

managing partner of initial last capital. . so much more to get to, we will save that for another conversation. it was great to have you on the show. coming up, suspending production. toyota says it is blasting output for the month of september in part due to the global ship crisis. after the break, we will hear from the toyota executive vice president of sales, bob carter. this is bloomberg. ♪

>> we believe that the worst is passed. >> it is very fluid. >> it is going to run well into 2022. >> the chip shortage is also driven by the capacity. already the action has been taken by our suppliers and this will also go away. >> we do think we will publicly be included at least 2022 until

we start to see supplies rebound. >> whether it will go away in the short-term term, i don't think so. >>. >> we have seen shortages of summer between 5% to 20% maximum production compared to our initial plans. emily: you heard if there. the global chip shortage remains top of mind. toyota executive vice president of sales says it is a big reason the carmaker has cut production for the month of august. it is also facing supply chain issues from east asia and europe. he spoke earlier with my colleagues. >> we have been managing this supply chain disruption very well over the last 4-6 months, but, quite frankly, due to the disruption in southeast asia as well as in europe, we had to announce overnight that we were

going to be reducing production in the month of august, between 60,000 units to 90,000 units. and again, we are evaluating the impact for september, but it appears to be 70,000 to 90,000. this is far beyond microchips, although microchips are the center of most of this activity, but we are seeing a wide range of supply disruptions due largely to a continued outbreaks of covid. >> robert, you have done a really good job managing your daily shipment network. you have been really flexible, it really coordinated you actually had a really good communication strategy and this has been reported widely, this is not just me saying this. what are dealers saying, how under strain is the inventory program? in terms of trying to get vehicles from one place to another where potentially they could be sold, to manage that

inventory that you do have as nimbly as you can? bob: thank you for that. we communicate extremely well with our dealers and retailers. what a little bit of the frustration is is that natural demand from the industry remains to be very high. we are projecting demand without supply chain disruption in excess of 17 million units on an annualized basis. but what we have seen in the last 60 days, industry sales are coming down. inventories are purely depleted. i will give you a good example. last month we started with about 40,000 units in inventory. yet we are able to sell 225 thousand units. and that is because our 15 plants in north america were

continuing to produce. and our dealers do an excellent job. but now, as we just previously said, the supply chain issues in southeast asia and in europe are critical that we are just not able to continue that level of production for the month of august, and september. >> i wonder what the long-term fix is. we are also having partial closures from ports in china, for example. it feels like herd immunity for covid is getting pushed out and out, it may not be there at all, so this may become a full reality of life. how do you fix it still run your business? bob: that is a complex question right now. what we need to do as an industry is we need to solve this pandemic and bring a safe working environment to our team

members. i am really proud of our 15 plants here in north america. we are up and producing, we are social distancing, we have returned to 100% mask-wearing. we do have a very solid plan in america, but we are dependent upon our second and third tier suppliers coming out of asia and europe, and that is really the issue of this problem. emily: toyota executive vice president of sales, bob carter there. coming up, to get ahead of the next ransomware attack, microsoft is in boston in a software startup to help customers recover their data. i will be joined by the ceo of the startup, and microsoft director for an exclusive interview,. this is bloomberg. ♪

emily: welcome back to "bloomberg technology." i am emily chang in san francisco. softbank offer to sell $2.2 billion of its stake in the company. this according to a source that says the deal was done through goldman sachs. turning this is ed ludlow. doordash reported a pretty strong quarter. does this have to do with doordash, or softbank trying to

address some of its own losses? ed: great question. the shares opposed of the biggest drop since early june. when you see a trade like that, the psychology of the market comes into play. it is also just an issue of market mechanics. you flood the market with supply when you sell that many shares. as you say, the story of doordash has been strong. they have had staying power throughout the pandemic. yes, shares are down from a february high, but this is much more a story about softbank. softbank has been on a selling spree. pull up some of the stocks they sold. in the second quarter they trimmed their stakes in companies like facebook, doordash and netflix by $14 billion. the question is why and who is behind it? let's bring up a picture of the most important man in the world of private investment

startups, masayoshi son. for so long, he was against exit. he was against liquidating. against cash. but they want to infuse new cash into startups. really what we're seeing from softbank is a change in their own psychology, about wanting to exit, to get some cash in their pocket and invest in the next wave of startups. that is more what is at play. not an isolated incident, but a run of position trimming that we have seen from softbank throughout 2021, emily. emily: thank you so much, interesting perspective there. it has been quite the year for ransomware attack's, from colonial pipeline. and as more companies go to the cloud and manage hybrid workforces, security is more critical than ever. to get ahead of the next attack microsoft is investing in a software startup, rubrik, to help customers recover their data without having to pay.

i am joined by microsoft independent director john thompson and the ceo of rubrik. it has been an incredible year. unprecedented. how do we even start to stop these ransomware attack's from happening? bipul: it has been an unprecedented year, because all of the digitization and isolation creates a window for attackers to get in. and companies need to have a strong strategy to be able to get up from ransomware. microsoft came up with the zero trust framework. that is what rubrik and microsoft are focused on. rubrik is coming into complete the story and help our customers be secure.

emily: let's talk about the payment part of it. how do you enable customers to get their data back without paying? some of these customers are paying millions of dollars? bipul: the core issue is, how do you get your applications back up and running? how do you get control of your data? that is why you need to have your backup absolutely rock solid. that is the core part of the strategy, how do you prevent the data from getting infected? the zero trust based tooling, is a backup that cannot be touched by ransomware, is the key to really recovery. it is the combination of guaranteed availability, plus the fast recovery, how customers don't have to pay to get their stuff back from the bad guys. emily: microsoft itself has been a target of cyberattacks in recent months. what does microsoft get out of

a strategic investment like this? john: rubrik and microsoft have been partners for quite some time. in 2018, i think it was, microsoft enough to that rubrik was their top partner that year. what has evolved is this notion of zero trust, and, more importantly, the concept that more and more people are going to move workflows and data to the cloud. and so, creating a deeper partnership with rubrik was a very, very important element of what microsoft is trying to do, to make sure that people know that it's platform is open to all apps and services. emily: there are a number of examples where you help the victims. a county in california. the city of durham, north carolina. a big australian manufacturer. got 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 whether -- you know, how

often the perpetrators can be brought to justice. rishaad: once the attack happens, folks go back to see if there backup is intact, and what we are seeing is that two out of three legacy backup platforms impacted by ransomware. that is where rubrik comes in. we are actually guaranteeing recoverability. folks go in and look at their back up and say, is my backup intact, number one, what has gotten impacted, number two, is their sensitive data involved in this attack so i need to look at other places where my customer data is exposed? and then they start to do the recovery, where the data is recovered and they analyze the data to make sure everything is intact. is a very cumbersome process.

that is how our customers don't have to pay the bad guys. the ability to identify the attack, the ability to get the applications back up and running , that is how customers say we are not going to pay ransom. emily: john, you have been in the tech industry for a long time, you were ceo of symantec. how would you describe the scale of the threat level we are seeing now compared to years past? john, can you hear me? john: yes, i can. i said, it is unprecedented. did you hear that? [laughter] quite frankly, when i joined symantec. emily: i did.

john: when i joined in 1999, the hardware threat environment was relatively small. it was more about the endpoint. but as companies have grown exponentially, it has become more known about the server and the data that is being stored in those servers, and that has created an enormous threat opportunity, for every business, and, quite frankly, for every individual that is working online today. emily: so, john, what is next? what should we, and what should companies be most afraid of, what do they need to worry about at this point? john: the simple solution and concept that has been brought forth, zero trust, very relevant today. know who the subscriber or caller is, know where the content is coming from. nowhere the subscriber is being

used. i just got an email yesterday from zoom suggesting that i need to pay my bill. my business pays for the zoom bill. it clearly was a --, just like everyone else gets every single day. emily: bipul, we have recently seen cryptocurrency become a victim of ransomware attack's, with the attackers asking to be paid in cryptocurrency. how has that changed the game? bipul: cryptocurrency liberates money from fiat currency and makes it available to anybody around the world, but the side effect of cryptocurrency and the privacy that comes with it is that bad guys are using it to get money anonymously and get money transferred. the thing is that, as we innovate and bring new services online, bad guys are finding new

services to make use of further own purposes. we need to have a strong security framework around how we use application and how we use data. the traditional mechanism of prevention is not very effective. so people have to really think about inside-out security -- is my data and applications protected inside out -- so you can utilize all kinds of technology, including crypto, to really protect your core ip, which is data and apps. emily: we will continue to follow and cover this story as a tax pop-up. rubrik ceo bipul sinha, and microsoft's john thompson, thank you for joining us. coming up fashion designer's , appeal to the modern consumer in a new way. joining me next, stoxx ceo is

here to talk about streetwear and collectible trends. 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 and other physical stores the company currently has , including whole foods. the first stores are expected to be located in ohio and

california, and would expand the company's reach in clothing, household electronics, and other products. meantime, amazon is also in favor with wall street analysts. every single one who rates the stock, all 55 of them, have a buy rating or equivalent to a buy. last months unexpectedly weak sales forecast complicated the story. sales have tumbled from their july peak. well, collabs reigned supreme when it comes to items bought, sold, and traded on stockx. out of 10,000 apparel and accessories, nearly a quarter are collaborations between two or three brands. think gucci and northface. and bape back hats. joining me is the stockx ceo

scott cutler. i am struggling to imagine how i can make a bucket hat look cool, but somebody out there is doing it. [laughter] these design collaborations aren't exactly new. what is different about collaborations from today than previous collaborations question mark scott: what is driving it is this a new generation consumer that is looking to the influencer, the celebrity. you are seeing brands and drafting off of that demand for the consumer and entering into these unique collaborations that appeal to the next generation of consumer, decreasing great products that the consumer is attracted to. emily: my producer is reminding me that it is babe, , not ba- pay. [laughter] here at home, let's talk about the hype, the draw, the attraction to stockx.

what is the twist you are putting on this merchandise that makes it also valuable? scott: well, stockx is a trusted global platform for consuming and trading current culture. and today current culture is , very much designed by the consumer. and stockx is a place where typically find access to items in current culture that you can find anywhere else. but today's brands are using scarcity as a model to drive demand, and they are using these collaborations to drive that. what is really interesting is that these collaborations are up 200% in the last two years. the brands are recognizing that as a result of these collaborations, they are 60% higher than what they would get normally. it is a flywheel that works on both sides for the consumer and the brand. emily: we are also seeing a revival of fashion items that -- were previously out of fashion -- bucket hats for crocs,

one, birkenstocks, those i do know how to pronounce because i remember them from high school. [laughter] scott: sure. crocs as an example, collaboration with justin bieber. bad bunny, post malone, on our platform, up 100% year-over-year. birkenstocks, up 600% year-over-year, collaboration with brandon susie. telfar, handbags, another place that is up largely due to fans like beyonce and oprah. so again, leveraging these tailwinds to create something new that maybe you forgot about. emily: talk about the trends you see the fashionable taking. there is definitely this push toward sustainability, towards the circular economy and away from fast fashion. is that here to stay?

scott: i think the big macro trend driving our business is that this next generation of consumerist changing their thinking about what it means to invest today. they're looking at physical assets that are more like invested assets. they are making investment decisions around that. that is certainly a new trend. and as you look at the areas of sneakers or collectibles, or even in apparel, nowadays, these consumers look at it as an opportunity to invest. they are opening up an entirely new market for companies like stockx to meet this demand. emily: talk to us about the real value. how will we know the value of investing in a piece of clothing or a pair of versus a stock? scott: stockx was built on the

platform providing transparency about the pricing of items in current culture. so if you come to the platform, you are able to actually see in real-time what an item is trading for. and then you are able to make an investment or a purchase decision based on that price history. there is third-party proof 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 have outperformed the s&p. in fact, a majority of the adults that are purchasing a snicker today, 40% of them are making it for an investment decision, not a consumption decision. so that's a relation between pricing and market pricing, and it being an investment, is, again, a driver for growth in the industry. emily: could nfts have a role in your business going forward? or do you think about that? scott: sure.

as we think about digital currencies, we also think about digital assets. a lot of times digital assets can be connected to the physical world. when we think about the evolution of digital assets, whether in tokens or nfts, and connected those to the digital world, we think it opens up another opportunity to invest or trade against things that people are very freshman about. you have seen that across all sorts of different industries. now you see a lot more burns also taking advantage of this new opportunity, because when you think of this next generation of consumers, it is not only items such as sneakers or collectibles, it is also digital assets and digital currencies. you can see that in the trends of other platforms that are seeing great growth on the back of these digital trends. emily: scott cutler. i learned so much today. thank you for, stopping by ceo of stockx there.

coming up, how a food-delivery startup fueling an ipo frenzy in india. a special report from bangalore, after the break. meantime, here in the u.s., another foot startup has recorded second-quarter revenue jumping above pre-pandemic levels, indicating customers are emerging from pandemic lockdowns and hopping on electric scooters. the santa monica-based bird is in the process of going public. a deal announced in may could value the company at $2.3 billion. this is bloomberg. ♪ is is bloomberg. ♪

emily: microsoft is raising its prices on its suite of business products. the microsoft 365 business basic

plan will jump at 20% to six dollars per users. the high-end version will see a four dollars bump user. microsoft says the hike is the first substantive cost change since launching 3625 a, decade ago and reflects increased value since that time. it will take effect march 1 but will not include educational or consumer products. meantime,, india is on track for a record year of use, with more than $8.5 billion raised so far this year, and if the pace continues, 2021 would exceed the all-time record of $11 billion raised in 2017. what is fueling the frenzy? one word, so motto. the food-delivery -- one word, zomato shares have soared more than 70%. it has gotten other similarly challenged startups

thinking. >> india's three largest startups. the leader has filed the initial documents. [indiscernible] >> one of them has also started filing initial documents. that is also coming in october. another one which is the largest education startup, in fact, the most valuable startup right now, says it's horizon is a little more long-term, perhaps 12-18 months. many see that india could have a couple hundred ipos in the next few years, changing the flavor of the stock market, improving

and increasing the insatiable appetite of investors. not a lot of them have any path to profitability as of yet, but india has this huge rush of i.t. service companies come into the public market. some of these companies are not w the most valuable on the indian stock exchange. in fact the second most valuable is the second largest i.t. company in asia. so this could be india's startup ipo moment. emily: and that does it for this edition of "boom technology." tune in tomorrow." . we will be joined by the ceo of language learning app duolingo.

i am emily chang in san francisco. this is bloomberg. ♪ (announcer) looking for a better way to lose weight and feel good?

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>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees. >> the following is a paid presentation brought to you by rare collectibles tv. announcer: the morgan silver dollar is without a doubt the most iconic coin in united states numismatics history. designed by united states mint assistant engraver george t. morgan, this silver dollar series was minted from 1878 to 1904 and then again for one year in 1921.