>> from the heart innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology." with emily chang. emily: i'm emily chang in san francisco. this is "bloomberg technology." bitcoin soaring past $50,000 yet again, flirting with a prolonged rally. el salvador is poised to start excepting bitcoin as legal

tender. we will take you to other countries like vietnam, india, and ukraine, where grassroots crypto adoption is gaining momentum. a major concession by apple to media companies like netflix and music companies like spotify. apple letting certain apps out of the cut that has sparked controversy and stirred regulators around the world. will it be enough to end antitrust scrutiny? we will discuss? the future of audio. david sack launches a new platform to take on stubhub, and wherever you get your media. he will join us live. let's get a look at the markets. i want to bring in -- who has been following the play-by-play. >> we will start off with the positive risk on day. a lot of optimism ahead of tomorrow. you had facebook and alphabet shares dealing with antitrust scrutiny headlines from last

night. the doj coming out with new headlines targeting both companies. it started weighing onto the market. apple and tesla fell. i want to show you in the broader timeframe. alphabet has been outperforming on that recovery, the business ad revenue doing well. i want to show you the three big earnings stories. all of it down despite broadcom delivering an upbeat forecast. revenue estimates and hp giving a laster -- lackluster forecast. spilling into the after hours, despite earning season. emily: thank you so much. we will check in with you. it is a concession of sorts for apple. the iphone maker announcing it will relax app store rules for some developers. media apps like netflix will be able to link to external websites for payment by users. also affected by the change,

video, audio, music, reader apps, spanning magazines, newspapers, books. it does not apply to the most lucrative class of mobile apps, games. it comes at a time of rising regulatory scrutiny and criticism of apple and alphabet's market dominance on mobile platforms. let's look at this and other big tech stories. we are joined by david kerr patrick and mark gurman and naomi nix in washington. i want to start with mark. it is a significant concession from apple. talk about who this benefits and how, and where it may not go far enough. >> like you said, it is massive. when the news broke last night, it was immediately significant. to me, it felt like the ball game for antitrust crew of apple was over. they are giving developers, particularly what i have said apple should do for months. it is the same the judge in the

apple trial said. they will allow developers for the first time to have a button in their application where you can click it, it will take you to their website to sign up for their service and pay for it. it will completely circumvent the 15% to 30% commission apple would normally take for applications like the kindle book reader, netflix, spotify. it excludes games. personally, i don't care it excludes games. it is a massive shift from the app store. i'm surprised they ended up doing it. it takes such a long time. that is all you need to know about how controversial this move was internally. it will probably cost apple $1 billion per year, but avoid a lot of headaches in the future. emily: it is great for companies like spotify, who have complained about this for years. but the ceo of spotify not totally happy. he said it is a step in the right direction, but does not solve the problem. developers want clear, fair

rules applied to all apps. tim sweeney, the ceo of epic games said they should open up on the basis of each individual app on these merits. he says they are running literally a day by day recalculation of divide and conquer in hopes of getting away with most of their tying practices. do you think apple doesn't go far enough? >> they don't go far enough. clearly, mark expects they will go further. his comments pretty much presume that all apps are ultimately going to fall under this new regime. at the moment, it is only media apps. interestingly, it was done in response to japanese regulators. the thing that is so interesting to me is once you become a global platform and you have countries all over the world scrutinizing you, especially when you are in some ways, the most powerful company in

history, apple is, people will not take for granted can get away with whatever you want. i absolutely believe all apps will get this freedom. but they don't have it yet. epic is still in court. they want it. they want a lot more. we will see what happens. emily: this is in response to a japanese regulator. apple facing regulatory scrutiny from u.s. regulators, regulators in south korea, and india. what is next? we are waiting for the verdict in the apple-epic trial, but it will not be enough to end scrutiny around the world. >> if apple opens it up to games and all sorts of applications, that should be good enough. everything comes down to money in this world, as we know. what more do developers want? they don't have to pay the 30% fee if they link out to the website. developers want alternative app stores, sideloading, that will not happen unless apple's hand is seriously forced by government.

the point about opening up to the 30% circumvention of other apps, it may happen. i'm looking for apple to loosen restrictions on cloud gaming services. here's a tidbit, they have thought about turning apple arcade at some point into a cloud service. spotify is complaining apple sends advertisements through push notifications to users to sign up for apple music. either apple needs to stop doing that, or allow spotify and netflix to be able to do that, as well. they want an equal playing field. they will not get sideloading or their own app stores. emily: i want to turn to twitter. twitter is adding more features to protected privacy, making it easier to use the app, get a more mainstream user on board. what is twitter doing? >> twitter is making a real strategy shift in which they are experimenting with new social privacy features. some of those include the ability to give users the

ability to archive tweets that eventually makes them not visible after a certain amount of time, a month or a year. the ability to make invisible which tweets they liked or removed themselves from public conversations, or even remove followers. the idea came from internal research showing a lot of users did not really know what was public and what wasn't, and didn't exactly understand the platform. they will experiment with more privacy in hopes of getting the more mainstream user on board and increase engagement. emily: it is obviously not good if twitter users don't know how to use twitter. do you think it will work? david? >> sorry -- i had a dog barking. they have a lot of changes they need to make in order to make twitter easier to use. i'm sure naomi would agree,

twitter for ordinary people is still way too hard to use. these are extremely positive steps to give you more control over your privacy, who sees your stuff, how long your tweets last . those are the things that will make ordinary people more comfortable. in terms of the interface and how you approach twitter in general, they have a lot of changes to make. definitely it is progress and they understand the problem. emily: -- >> that is a risk. i think there is a risk for twitter in which the changes, if they go forward, would change the nature of the platform. given twitter is a very public spacing, newsmaking place, if politicians are allowed to archive their tweets after a year, how does it change the conversation about their record in the past and comparing it? it will be interesting to see the results. >> just to show you the complexity of the decisions

these companies have to make. nothing is easy at the scale of influence twitter, apple, or facebook have. emily: absolutely. all stories we will continue following. david kirkpatrick, naomi nix, mark gurman, thank you for joining us. shares in virgin galactic took a nosedive thursday on news the faa is grounding the operator while it investigates the july flight that carried richard branson to the edge of space. it is looking into whether the craft, known as spaceship 2, deviated from its approved flightpath. it flew outside of its designated airspace for one minute and 41 seconds due to high winds. virgin says the trajectory did change, but did not travel above populated areas and was not a hazard to the public. coming up, helping companies navigate covid and the future of hybrid work through software. we speak to the ceo of service now.

this is bloomberg. ♪

emily: shares of service now are at a record high. their business has grown with the development of new workplace tools to help companies navigate the pandemic. bill mcdermott joins us now. great to have you back. obviously, you have managed to capitalize on these trends. not a lot of certainty about what lies ahead from hybrid work. some returning fully in person, some going remote. how are you navigating it? what do you expect from most businesses? >> the most important thing is

we are in service to our customers. they are in-service to providing a great employee experience for their workforce. that includes how you recruit them, hire them, how you onboard them properly, train them, just so they know what they are doing, especially since in most cases, employees aren't even meeting employers, it is all happening virtually. how do you manage a frictionless environment for these employees to have a great experience? it has to be at a consumer grade level. we are doing that for companies and governments all over the world. emily: does the uncertainty make things difficult when trying to figure out which products are going to grow most in the future? >> what we are seeing is a convergence of digital transformation on the service now platform. this includes it, providing a

great service that is highly secure to the business. it includes giving the employees a great experience. and obviously, managing customer relations in a frictionless world. it includes things like direct to consumer, or service, that is completely remote and high quality. one of the biggest things is there will be 500 million new applications developed in the next couple of years. there's not enough engineers to do that. so most customers are turning to the now platform to build those low code applications to reinvent the business. the best part with servicenow is it is all on one architecture, one code base, and one common platform in the cloud. that is why the company is performing so well. emily: what are you expecting of your own employees? are you calling them to the office?

do you expect them at the office permanently at some point? enterprise software involves a lot of selling in person. have you restarted those practices? do you expect it to pick up into the long-term? >> we are proud of our employees. the most important thing is communication. i believe anything worth communicating is almost always under communicated. so we want to stay really close with our employees. we set january as a goal date to get folks back. we also know with the now platform and return to work safety applications, the importance of asking people if they are ready, mentally, physically, emotionally. if they are vaccinated. we have all of the data in our now system to understand where our employees are at. they are coming back to the 50 locations that are the biggest around the world. in some cases, they will continue working remotely until

the new year. the most important thing is we are leaning in on employee motivation and satisfaction. there is a talent war, and we want to make sure service now is the ideal place for people to work. emily: on that note, we have seen a huge migration in the tech industry outside the bay area. many tech employees are going to texas, where you have several offices. we are seeing a shift, a decision this week clearing for a defective ban on abortion. what is your opinion? will it affect your ability to recruit talent? >> first of all, we are located as headquarters in silicon valley. we are located in santa clara, we founded the company in san diego. we are very focused on remaining a california-based company and believe strongly in the massive innovation possible in silicon valley. we have offices in a lot of

different locations. there's a lot of different state and local political scenarios that we understand are out there. but we make sure servicenow is a happy company and a place where people can work from anywhere and do it in a highly productive and successful way. so we are in good shape. we are not relocating to texas or anywhere else. we are a silica and base company. you said -- we are a silicon valley based company. emily: investors want some detail. how do you plan to do that? >> the most important thing is we stated servicenow has already become the fastest growing organically innovated company in the cloud ever. we said by 2024, we would achieve the $10 billion revenue gate. then i said in the next five years, we would be $15 billion plus.

i said we would do it because of our incredible engineering. the innovators we have, the pride we have in engineering is second to none. we will continue to invest in it and make customers happy, because they really need the now platform. think of us as a platform company, think of us as an i.t. employee, customer, and creator. all of these businesses can be major corporations in their own right. but the beauty of servicenow is it is all integrated on one common platform born in the cloud. emily: servicenow ceo bill mcdermott, good to have you back on the show. thank you for joining us. whatsapp has been fined more than a quarter of a billion dollars for failing to be transparent about how it handled earth and all information. the penalty was handed down by facebook under beefed up protection law. it was after amazon was hit with

a record 888 million dollar fine for violating the european block state of regulations. the campaign to recall california governor gavin newsom is heating up. a deadline for votes fast approaching. we will get an update after the break. find out which silicon valley's elites are using their influence in the election. this is bloomberg. ♪

emily: alibaba has become the latest tech giant two row china's broad aim to share the wealth. they pledged $15.5 billion over five years toward the common prosperity vision. the money will be spread between 10 initiatives involving tech investment and support for small companies.

we are less than two weeks until voting ends in the california governor recall election. voters are deciding whether governor newsom should remain at the job, and if not, who should replace him. the latest poll suggests he will probably survive the vote. but californians have a lot to weigh, including how he handled the pandemic with the delta variant, and the wildfires, leading to the evacuation of south lake tahoe and closing the national forest. we are covering the election campaign. talk about what the polls are saying. >> the governor got some really good news from the latest poll. a majority of likely voters, 58%, would not back his removal. 39% wanted to remove him. when it comes to job approval rating, he has been doing well. about 53% approved of his job performance as governor. but it showed a huge enthusiasm

gap remains. republicans are galvanized for this election. they think it is their best chance to get a republican governor. the state hasn't elected a republican as governor since 2006. . that's before the advent of the iphone. according to the polls, 54% of republicans are more excited than usual to vote in this election. democrats, just 40% of democrats say they are pumped up, enthusiastic about this election. it shows the newsom campaign has a lot of work to do to rev up the democratic base. emily: we are looking at the top replacement candidates. there are also major tech heavyweights for and against this recall. tell us who they are. >> the replacement candidates, larry elder is by far the voters' favorite. in the latest poll, about 26% of

likely voters favored him. kevin faulconer. the one time republican establishment favorite. he is trailing far behind, with 5%. caitlyn jenner, the reality television star. she launched her campaign to a lot of fanfare. she is at 1%. emily: we were looking at a slate of silicon valley folks who are supporting gavin newsom remaining in office. marissa mayer, eric schmidt, we are also following top silicon valley folks who are for the recall. they want gavin newsom to be removed from office. walk us through what kind of sway they might have. >> it is significant that some tech titans want the governor removed. one even floated the idea that he would be a replacement.

larry ellison of oracle donated to caitlyn jenner. it shows tech is not a monolith. there are people who want him removed because -- the problems of california just intensified under his watch, according to their opinion. they do not like the measures he put in place to control the pandemic. emily: you can vote right now. a couple more weeks of voting. don't waste your chance to vote. thank you so much for the update. coming up, i will speak with the ceo of chain now, the inside of the rapid adoption of cryptocurrency and what it means for the global economy. that is next. this is bloomberg. ♪

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emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. bitcoin broke above the $50,000 mark yet again. let's get the crypto market moves with kriti gupta. >> back above $50,000. other currencies were not doing well. gold and the dollar, assets bitcoin thought as a substitution for, down. i want to zoom up at the chart and it wasn't so long ago ethereum was leading bitcoin.

now you see a divergence. people choosing bitcoin over it. another thing to watch is the spill over in the stocks. cryptocurrencies were higher, whether bitcoin, ethereum, or dogecoin. all looking the alternative payment. you can see it in the bitcoin specific companies. once dealing with a lot of the exchanges and companies like paypal and tesla. or start to accept bitcoin in particular. watch the divergence between stock and asset class coming together. emily: thank you so much for that round up. part of what could be driving the bitcoin rally is the official launch of cryptocurrency as legal tender in el salvador. they will be the first in the world to use bitcoin as a medium of exchange. they will receive $30 of bitcoin automatically if they download the government's bitcoin wallet.

looking beyond central america, global adoption is skyrocketing. chainalysis saw an 881% uptick in the last year. for more in the world of crypto, let's bring in the ceo, michael gronager. how significant do you think this move is? >> el salvador is important. it is an example of a relatively small country, quite nimble, as many countries in south america are, and can capture a lot of revenue in the country. a lot of gdp is tied to admittance is. bitcoin and other admittances are good for transfer of funds. i assume the adoption was already high in el salvador. moving into making it tender -- legal tender is the logical step. i think that has not been part of the movement of the price, we will come back to that later. emily: what do you think is driving the price?

>> the prize -- we see bitcoin, ethereum growing a lot over the last couple of weeks. a few months ago, we saw platform changes. the network got stabilized, so i think it facilitated more trust in ethereum as a whole. on top of that, we have seen the trend growing and growing. decentralized finance, or you can exchange services directly on the blockchain. you can run building and other things directly on the blockchain. that has been pumping interest in ethereum. it is then dragging along the other cryptocurrencies with it. emily: when you look at some of the numbers out of el salvador, you have 65% of people saying they would not be open to being paid in cryptocurrency. you have to get merchants and people to accept it. yet we see adoption in other

countries. vietnam, india, ukraine, pakistan. how do you expect it to shake out? >> i think with everything that is new, a lot of people in the country you would ask this question to would hardly know what bitcoin is. they would be like i want my dollars, what i'm used to. then we will see they can download the wallet from the government, and they realize it is simple, or simple than what they are used to. so it is normal resistance you see in other countries. i'm not super concerned about it. emily: what is next in your view? especially as we see looming regulation, we are waiting for more signals from the sec and the u.s. we have the tension between early adopters and excitement, and distrust from a lot of people. >> one of the things that is important to know about cryptocurrency, it is far more transparent than any other asset

class they are used to looking at. so the perception of cryptocurrencies is it is anonymous and so on. it is the opposite. it is far more transparent. it is something regulators are starting to see and understand, and will utilize and actually see that the benefit as a medium of exchange is interesting. further on, we have seen a lot of financial innovation happening on crypto. financial innovation is far bigger on the crypto side of the market than in traditional finance world. that will drive a lot of adoption. of course, it will challenge and keep a lot of conversations. but i look relatively positively on the future. emily: you are also a cofounder of the exchange crack in. jesse powell is on our show frequently. we love to ask where he thinks bitcoin is going.

listen to what he had to say recently about how far up the price can go. >> the moon is the bear case for crypto. we are going to other dimensions with bitcoin. i think people need to hold on. we are early days, early in the cycle. we can see $100,000 plus a coin late this year, early next year. emily: do you think we can get past $100,000 and other dimensions our next? >> i would say for most of the cryptocurrencies, like bitcoin, ethereum, we have seen a trend where they grow year-over-year. sometimes they grow faster than others, sometimes it is a bull market, sometimes a bear market. a lot of interesting things have been built. that facilitates a new bull market. i think we can see above 100 thousand dollars by the end of the year. i would be bullish on that. long term, i would probably --

we can go beyond it, as well. so we can see higher prices for those assets. emily: i love both of your metaphors. thank you so much. chainalysis ceo, michael gronager. coming up, clubhouse, take note. a new social podcasting app in the house. david sachs joins us to talk about his next big bet in an increasingly crowded market. this is bloomberg. ♪

emily: youtube has become the world's fastest growing paid music service.

the company has signed up more than 50 million paid subscribers. a major milestone for the video site that has been criticized by record labels and hollywood studios for giving away their worth for free. youtube accounts for about 8% of the world's subscribers. spotify in the top spot with 32%. inspired by his frustrations producing episodes of his own podcast, david sacks is launching a new social audio app to make it easy for anyone to launch their own show with transcribing, recording, editing, and social distribution. creators can actually save their conversations for listeners to find later. i want to bring in david sacks, a longtime silicon valley investor -- callin investor. what has been missing from clubhouse, twitter spaces, and other podcast platforms? >> they are all ephemeral.

when you create a room on any of those platforms, it is not saved. it gets thrown out. that was the starting point for understanding what we are doing. we are creating from podcasting. when you go to callin, it is like a pod in front of a live studio audience. you have the ability to take questions from an audience. you have a creator, show, they are in charge of the room, can bring people up to answer questions. very importantly, after they record the episode, every room is recorded by default, you can go into the postproduction features, edit the episode, cut out what you don't like, and publish it or share it, and it becomes part of the backlog. there is a library, it is podcasting, but a new social podcasting. that is why we don't think the space is that crowded. there's about five other companies doing the same, but not what we're are doing, social podcasting. emily: you are leaving in

old-school radio futures, like a queue for audience participation. are you putting podcast producers out of a job, or is it something the platform still cannot do? >> we are still doing a podcast with all in, the podcast i have been doing with friends. that inspired me to do this. i learned how difficult regular podcastsing is. we have a guy in the sound studio, an engineer who does six hours of postproduction every episode. we just automate all of that work. the goal is not to win a small sliver of the existing podcasting market. our goal is to grow the market exponentially. 10 times, a hundred times, the long scale of podcasting. enabling anyone who has something to say to create a show. now they can do it with their iphone. they no need to get started using -- they get started using a nap.

we bring podcasting to anyone who wants to create a show. emily: creators are expecting a lot more from social platforms. will you pay individual show creators? how will you decide how much to pay them and when? >> we have -- business model yet. the obvious ideas our advertising and subscriptions. the tried and true playbook is first you build a mass audience, then introduce monetization. the plan would be to share with the creators, it would be more of a youtube like philosophy than a facebook like the south -- philosophy. anna ties and or subscriptions, it would be a very healthy rupture with creators, as opposed to facebook, who keeps the revenue. emily: what do you think about clubhouse? people have said clubhouse is dead. would you agree? or dying? >> i think we have a very different kind of vision.

i have heard about what the co-founder wants to do. it is around creating these live experiences. it is almost like a digital cocktail party. there is definitely a place in the world for those experiences, a new kind of social experience. almost a digital party line. that is great. there is nothing wrong with it. we are trying to do something different, trying to create shows. when you go on callin, you are not just going into a room with a conversation, you're going into a room with a specific creator who has a goal in mind, a very interesting concept of show in mind, and are producing episodes of it. when you go in with a different intent, there is a very different culture and expectation in the app. we are trying to create something different than clubhouse, not do the same thing. emily: in the post-pandemic world, when at some point, people are going to go back to

the office, they are not necessarily going to be on lock down, what is the future of audio and social audio as a piece of the media pie? how much bigger does that piece get? >> i think it gets a lot bigger. audio could even be bigger than youtube for the simple reason it is so easy to create. video has gotten easier to create. the thing about video is it can be very compelling if it is good, but if it is not good, it is a worse experience. bad video is much worse than no video. with the microphone on the iphone, it has gotten so good, it is almost like the camera. you can create podcast quality audio just using your phone. it is so easy. i think we could see -- we could see audio be the biggest user generated content category. we are still scratching the surface. the reason why people have not thought about it that way is because doing a podcast is very

hard. you have to have the postproduction facility to do it. i think it could be a very big category of user generated content. emily: speaking of the pandemic, you are a big proponent of the recall of california governor gavin newsom. at one point, you were supporting your bestie, another investor. he pulled out. why do you think he is so bad for california, and who do use of or to replace him? >> i was on here six months ago and we talked about this. i think we have an opportunity with the recall to send a message to the political class that runs california. california is pretty much a single party state run by an entrenched political elite. i don't think most people in california are super happy with the way it is going. crime is out of control, homelessness is out of control. school closures where the most

severe during covid of any state in the country. we were the 50th state in learning loss. we had the most learning loss among our children, which affects disadvantaged kids the most. we have the most severe lockdowns in the country. that newsom -- not the fact he was eating at five-star restaurants, but the fact he was breaking his own rules while other businesses were suffering. i think these are the issues california's are up in arms about. at the end of the day, i don't know exactly what happens here. it was always going to be a long shot to recall a governor who won by 22 points just three years ago and has outraised all of his appointments by like $70 million. it would always be a long shot, but i felt it was important to address these issues and the

need for california. emily: you support the recall, but who do you support to replace him? are you supporting a republican candidate? >> i'm yes on question one, and leaving it for people to decide for themselves on who to support on question two. newsom is really trying to scaremongering on this issue. no matter who the replacement government is, democrats will still have majority in the legislature, the assembly. they will have a super majority, which means even if the governor vetoed a piece of legislation, it can be overridden by the legislature. so there is not much a replacement governor could do. the one thing they can do is keep schools open to avoid a repeat of the school closures we had over the past year. i think that would be healthy. that is about the only thing they could do. it is important to send a

message to the political elite by voting yes. emily: i'm sure you will continue this debate on twitter and all in. some say it is the teachers union making the decisions about the schools, not necessarily the governor. what do you think about these big tech companies mandating vaccine disclosures? do you think it is a good thing? does it take the power of a corporation too far? i have about one minute left. >> i think a company should be allowed to impose those requirements on employees. if a private enterprise wants to say in order to come back to the office, you have to be vaccinated, that is their right as a private enterprise. i'm fine with it. back to the point at the beginning of the question. you said it was the teachers unions calling the shots on school closures, not gavin newsom. i would point out that the teachers unions are gavin newsom's biggest single donor. so the education unions are

calling the shots, but they are telling him what to do. the problem i have with him is he does not stand up to these special interests. that is what we need in a governor, someone willing to stand up against the entrenched special interests. emily: we will continue following your debate on this topic on other platforms. david sacks of class venture, founder of callin, thank you so much. coming up, we hear from todd mckinnon after they reported better than expected results. you might have waited 35 years to once again fulfill your and need for speed. what you will have to wait longer. paramount pictures pushed back the release date of its long-awaited sequel to "top gun." it was supposed to debut in november, it will be released next may. it is part of a broader reshuffling as hollywood continues to wrestle with weak theater attendance due to the death of every and.

this is bloomberg. -- delta variant. this is bloomberg. ♪

emily: shares of okta up after performing results better. we spoke with the ceo, todd mckinnon. >> security is a big issue for every organization. not just the fact they want to secure things and lock them down and avoid ransomware attack's and supply chain attacks. you hear these terms. they want to do it while still making it easier for customers to do business with them, make it easier for employees to be productive at work. a combination of heightened importance and security. but they want to get their business is moving forward, make it easy, drive revenue, make

employees more productive. it is balancing that combination that is the challenge. >> what is the general spending plan with a lot of these corporate clients? there was a push during the pandemic where companies found employees working from remote locations and had to figure out how to keep everything operational and secure. once we come out of it, and hopefully people go back to their offices, what is the demand requirement in that environment? >> what has been changed forever, you saw all through last year and this year, companies have adjusted to this new reality of people working from anywhere. not that every company will have people working from home forever, or any company will be in the office, but every company needs flexibility. that genie is out of the bottle. employees want capability, the capability of different companies to use two different degrees. that comes possible. okta made that happen. we help companies secure

employees no matter where they are logging in from. whether home, a cafe, their phone. it has been investment level. what returns to customers, they are thinking about how they can invest and build better applications and better digital products to connect with our customers. that really helps them drive revenue, adapt to competition if there is an upside in their industry and they want to get online before the upstart, they need a better website, better customer experience. that is what customers are working on. that is driving revenue, as well. >> some of these industries have been looking at the cloud forever. the transition has been choppy, at best, in some of these industries. the financial industry, where it has not always been a clear-cut. what is the threat they should be most aware of into 2021 that you may come into help with? >> when i talk to cios, investors of -- ceos of big

companies, they want to talk about compliance, security, and identity. inevitably, the conversation turns into disruption. how these big companies cannot be disrupted by the digital upstarts. whether you are a big automobile manufacturer, you don't want to be disrupted by tesla. the financial service industry does not want to be disrupted by de finance, crypto, the upstarts. how can you be the disruptor? how can you take the game to your competitors? that comes down to having the best workforce, the best employees working on the problem with the best tools, and getting products and services to those customers in a secure way where it is easy to use and cannot be compromised. about 35% of our business is connecting our customers to their customers. making sure that identity is solid, they know who is logging in, it is secure, easy to use. that is why we are seeing the results we are seeing. emily: todd mckinnon there.

that does it for this edition of "bloomberg technology." i am in san francisco. tomorrow, i'm joined by hpe's ceo and dan springer. this is bloomberg. ♪

>> very good morning and welcome to "daybreak: australia." i'm haidi stroud-watts in sydney. >> i'm sophie kamaruddin. we are counting down to the major market open. >> i'm kathleen hays. the top stories this hour. >> u.s. stocks hit a record. a cyclicals leading the gain ahead of a crucial jobs report. haidi: foreign investors.