>> from the heart of where innovation, money, and power collide in silicon valley and beyond, this is "bloomberg technology" emily chang. -- with emily chang. ♪ caroline: as well as upgrades plus california heads for the poster decide whether the

current governor, gavin newsom, should remain in the seat marking the second gubernatorial recall in the state history. taking a look at the future for newsom and his job is at risk. spending big on tech in latin america, adding another $3 million for investments in the region who plan to invest in startups and public companies. an exclusive interview with the international ceo. all of that in a moment but first, a look at the markets. crypto with the latest. emily: a risk-off day and the stock market. you would think on a risk-off day coming off of a cpi, softer than expected, tech would get a bid. even as we saw money go into those payments, tech was in no part of the rally. a broad selloff in the stock market. where you saw money go with the treasury market with yields drop as much as six basis points and a lower by four basis points on the great -- day. one of the biggest contributors

to the s&p 500 move was apple. i want to zoom out. look at the big picture and so you technicals are in play. what happens to apple tends to move the s&p 500 broadly and apple suggest it could be set up for of drop when you're looking at the oversight. this is a bid for apple. extremely strong. what happened intraday in light of the products reviewed, the product launch, apple dropped lower on the day by more than its average. average launches for apple and up with a 0.8% decline on the date the company. now, zero point 96% decline and not only did apple take down with it some of the other big tech names, it took down its employer supply chain in the red. maybe it can recoup fits at the last seven days in the red. maybe tomorrow is the last day. caroline: maybe. it just may be. clearly just a little bit that for the $2 trillion company.

pretty set it up perfectly. apple on ranged -- kriti set it up perfectly. apple unveiled a range of new products. we got everything from upgraded ipads, the watch, a new iphone 13. that announcement has excited apple fans but not so much investors. shares ending the day down. first and foremost, everything that was announced you're anticipating. any surprises? mark: no surprises today. i think the most interesting story today is the apple watch. you really never heard this from apple before. they said this will be available later this fall. what does later this fall mean? it will not be this month or next month. it probably will not be november. the apple watches, with a larger

display, are delayed because of serious production and development problems they had late in the game. hopefully they are able to get them out before the end of the year. this is an interesting and almost unprecedented delay. similar to what we saw with the original apple watch but unprecedented. caroline what do you make of the : lineup and the supply chain issues that are there or not? it was interesting we had an analyst saying the price points haven't knew that much. sort of showing they are managing to contain the supply chain issues. what do you make of this? judy: i think they need to be contain supply chain issues, perhaps cutting back on the profits for price points consumers want. certainly i think apple delivered a solid line up your most investors still at home. most of us are looking to do more things at home. we are getting health care at home and working at home and being entertained at home and working out at home and all of this generates more demand not only for the devices but the array of services offered.

caroline: mark, to that end, did it --were you impressed in any way by the lineup? for you, it is old news. you broke at all ahead of time but is this enough innovation being shown by apple? i saw means about --doesn't matter much we are only seeing slight improvements? mark: this is nothing new. every time they come out with a resigned iphone, the follow-up device has a small update or are very similar design it so this is not surprising. is it good enough? and the edges of the device, i think that is awesome. if i wasn't going to get this version, i would get the ipad many and we are showing it on the screen right now. that will not move the needle for apple's revenue. it will move the needle with people upgrading to the new

iphones. these new carrier deals, financing plans, make it easier than ever. the one challenge apple has is consumer education about how it is very possible to get a new iphone every year, putting in 1000 dollars in apple's bank account without taking that much money or any money out of your personal bank account. i have a-12 promax right now. i will be able to get the 13 promax and order it this friday without paying anything additional because of how good the trading deals are. caroline: there you are. the education for the masses. what is interesting is also how much we are seeing the impact of apple.

perhaps it is not revolutionary this time that the standard they said and the impact -- the prices dipped a little bit. how much are we focused -- how much of a buy market share can be paid? judy: there's a couple of things. i agree with everything mark said and i believe apple has a very strong and very loyal customer base and the more they create services, the more they sell, the more locked into their ecosystem i am. i do not believe we will see dedicated and loyal iphone owners switch over to a samsung or get a different device because i'm already too locked into the system with my watch in my tablet and all the services i provide. the other thing is is very easy to focus on hardware and camera and how big the display is because that is what consumers understand and what sells. it is hard to explain the subtleties and all the things that are undeserving. our favorite memories from five years ago, the things that are hard to do, but i do agree with you. i think even when we talk about

the camera, the focus is what is going to sell for the holiday season? that is great photos. what we are talking about is the computer vision that these cameras enable. if you think about things like health care, augmented reality, virtual reality, and a lot more -- this is not just going to be about cameras in taking awesome photos. it will be about how this device enables me to do so much more over time. so many different facets of my life. caroline: at the moment, this is a story about buying into apple, so much more than a product. it is about the news we have had in the latest week or so that they have had a security issue with messaging system. they have had the ruling they say is in their favor that used to be pending. are you positive about apple?

judy: for two reasons -- one, every company -- not every one -- most have had security breaches. it is not a question of if. it is a question of when and what consumers care about is how the company handle it and apple is one of the most trusted technology giants of the west coast. i think despite the ruling, apple does have reason to be optimistic about the future within the app store because we can never underestimate consumers desire for convenience and privacy and security and the things apple offers. if we think about how little friction there is for me to go into app store and make a purpose -- purchase by showing my face and double-clicking my phone, it's easy compared to going on a website and creating a new account and some independent developer i do not know and do not trust. it is different for them. the netflix in the large media companies of the world like the new york times and wall street journal, it is fair for them to say i have had these customers for a long time. it is an and they are on the ios platform.

it is not the only place i reach them and it will continue to be easy for them to sign up outside apple and away from a 30% tall. i think independent developers will still depend on the system even if they have other options. caroline: always great to get your perspective. vice president and analyst. always great. thank you both for your time and insight. sec chair gary gensler plans to approve dozens of new rules from crypto to meme stocks. that's next. this is bloomberg. ♪ >> is it your view that stable coins themselves can be securities?ainsler: ink, senator, they ma securities. ♪

caroline: the sec chair gary gensler testifying today and spoke about his busy agenda, whether crypto, specs, or you name it. chair gensler: special-purpose acquisition companies, these blank check companies, the risk to the investors and disclosure to the investors, i have asked for recommendations we can consider as a commission so we are looking at greater disclosures and looking at inherent conflicts along the way. then trying to put this out to rulemaking that some of these tokens have been deemed to be commodities. many of them are securities. i'm not negative or a minimalist about crypto. i think it would be best if it is inside the investor protection regime congress laid out and i think the inherent conflicts of rebates on the stock exchange may make our

markets less efficient. this is important for capital formation in the retail investors. caroline: but get more insight from ben. such an ambitious agenda coming from gary gensler. what do we learn in terms of the way it was executed? ben: i think we learned a little bit about, you know, where he sees the priority areas. he delved a little bit deeper and said just kind of how he looks across, for example, the crypto space and basically says you know, most of the tokens out there in his view are securities which means they would fall under the sec regulations but i think today at more than anything else, what we learned was that republicans, at least in the senate and the banking committee, are a little bit skeptical of some of the plants chair gensler has laid out.

this was the first time he has gone before the senate. ultimately biden confirmed him for this job and he only had to answer to the other political parties about how he plans to go ahead with things like requiring more disclosures on climate change from how companies may be impacted by climate change, things like corporate diversity. a lot of the issues democrats in particular in the biden administration caret much about and he has said he wants to make a priority to the fec -- sec, republicans were skeptical. they had the message that they wanted chair gensler to focus on the bread and butter sec issues of stock markets and bond markets could -- markets. caroline: the top republican on the banking committee, pat toomey, has been very much a proponent of crypto, for example, and pushing back against regulation by enforcement, as he called it. referencing -- i am interested --the director of the cato institute joined us. she did great work from any time but was on a gamestop hearing in february as an expert witness. she was saying there is a fine line for the sec to not stifle

innovation. is that what the republicans are worrying about or is it more a capitalist tendency? guest: i think -- ben: i think it is both. a lot of what we heard from republicans were aligned with what industry lobbyists and financial trade goods in washington have been saying really for the past several months. also the crypto industry has been saying in particular, predating chair gensler, the idea essentially is that -- and you heard it from senator to me today -- if you come in with too heavy a hand, innovation, particularly in the crypto market, will leave the united states and go abroad or some of these projects will never take off and the republicans were saying today that would have a negative impact on consumers and the economy more broadly.

what we heard from democrats in particular, senators like warner for example, he was raising issues about how much some of these markets are not really overseen to the extent that perhaps other ones are and we heard really the big divide in terms of how a diverging crypto market should be overseen by washington. caroline: what about protection for retail investors, the consumer? if the republicans are arguing is better for the consumer to have innovation but on the flipside this ongoing narrative with the meme stock frenzied that the game if occasioned with the stock market trading -- gameification with the stock market trading, you think people heard what they wanted to with transparency being shown and if anything, the sec's role is about education? ben: i think probably both sides heard what they wanted to today in the sense that i think republicans, you know, heard chair gensler say

that he was not against the idea of innovation and he was not opposed to the new technologies and that probably sat well with them even as they are skeptical of some of the plans he has and i think democrats probably took away exactly what they wanted to hear. a lot of the focus of this new sec chair -- he has been there a few months -- has dovetailed with some of the issues that democrats particularly, in the senate, have raised as important issues in the markets. talked about the gamestop phenomenon and the meme stocks at the beginning. chair gensler also today said within the next short period of time, they produced a report explaining to the public what happened in that and also he said he plans to move ahead and look at the inner workings of the stock market.

i think republicans and democrats came away with a little bit of a more clear picture about how the sec plans to protect the retail investors. i think we are going to see this debate continued to play out as he moves ahead with a pretty ambitious agenda, four dozen rulemaking's on tap. caroline: plenty of transparency from him with our earnings season. then bane in washington. great to have time with you. let's talk valuations. this platform has a $40 billion valuation. sydney-based company raised 200 million dollars from bankers. the new valuation makes it one of the world's most valuable part -- tech companies. coming up, californians are deciding the fate of governor gavin newsom in an historic vote. we will discuss what is at stake. comcast finishing the date down more than 7%. slowed at the end of august. continue to impact the company's --

third quarter gains are unlikely to exceed numbers from the same period. all about the important 2019 comparison, too. this is bloomberg. ♪

caroline: the u.s. president and vice president have joined democrats at a rally for gavin newsom. as we see a second governor -- gubernatorial race ever in the states history, democrats are supporting gavin newsom as he tries to fight off the question mark to his power. let's join a professor at the university of washington. just give us historical perspective. we have seen challenges such as this but have never gained this much traction and indeed now,

potentially in unseating? guest: yes. the recall has been on the part of the constitution of california for a century. every governor in the last three decades has had a recall attempt. almost all of them have not gotten very far and not even gotten enough of the minimal amount of signatures to get it on the ballot. the one that actually succeeded was in 2003 when a democrat, gray davis, was recalled in favor of arnold schwarzenegger. someone who is already pretty recognizable when he became governor. this was not supposed to go this way for gavin newsom.

caroline: not meant to go this way and of course, there are two questions asked in terms of survey results and i think about what 39% are in favor of the recall and 60% are against it. they are being asked, should gavin newsom remain governor? if not, who should replace him? what are we knowing in terms of the support factors coming out for governor northam -- newsom? silicon valley supports him. why do they support him? guest: yeah, well, it is interesting. there has been silicon valley on both sides of this. california is overwhelmingly democratic more so than in 2003 when schwarzenegger one. it has been -- but i think silicon valley now leans heavily democrat. that is where the silicon valley put their money when it comes to election time but there has been frustration with, during the pandemic especially, economic shutdowns, with the broader state of not only california part particularly -- but particularly urban california, the question of we are paying all of these taxes in where they going and there have been very vocal people on both sides, but

particularly on the call side that helped this whole campaign gain momentum on this first place. caroline: masks being one of them. the irony is how much political influence do big technology money billionaires have over basically what is a democratic election? guest: it is interesting. silicon valley has always given money, sometimes very quietly, destroying leaning republicans. david packer, cofounder of hewlett-packard, was an important republican donor and kingmaker but without somebody going out in public rallies where he did not have his own podcast. [laughter] guest: giving political opinions. he wasn't on twitter, believe it

or not. this is really interesting in 2003. we did not have twitter or podcast or silicon valley leaders being so visible. they were just ceos of companies and were not all that payments on their own. now there is those moneys being given and i think even more interestingly, they are weighing in. they're complaining about -- and then i think what really turned the tide, it became less about let's get rid of gavin newsom and a realization, particularly among strongly democratic leaning executive class of silicon valley, that what the alternative would be. to get rid of gavin newsom, the lieutenant governor assents to the governorship which happens in some other states. instead, it is whoever is the largest vote debtor of the other candidates.

caroline: really fascinating. really great insight and context. university of washington professor giving us context that is necessary in california. coming up, we talked to the ceo of an international group to discuss how it is taking advantage of the growing popularity of next with bloomberg. ♪

>> i think it is still quite tight through the end of this year and the first half of next year but a lot of capacity is coming online in 2022 and i think we will start to see things get better. caroline: speaking at the global semiconductor alliance, the cfo of t-mobile warmed of -- warned of possible chip shortages on the samsung phone. here's is all the market breakdown.

>> semiconductors actually did fairly well relative to all the other sectors. chinese adrs as well as biotech, semiconductors ending flat on the day. stocks broadly took a pretty big hit today. the majority of the intraday session was higher on the day, that is good news, reiterating the view that there is growth for semiconductor companies. relative to another sector we always look at, compared to the tech haven trade which sometimes move together as a momentum play. you could see them kind of mirroring each other and starting to pick back up. in the broad sense that something you really want to watch.

i did sake it was a risk off day and you tend to see that in cryptocurrencies as well. today that was not the case. the crypto index up over 2%, almost 3%. prices for bitcoin and its theory him seeing a little pressure now but positive green on the screen. we will see if that continues tomorrow. caroline: softbank is putting a big chunk of money toward the latin american tech industry, adding three boone dollars for investment. way to have some time with you. -- great to have some time with you. what has surprised you about the region? >> first, thanks for having me

here. we have all gotten used to zoom. latin america has been quite a journey for softbank. we were investing to the tune of a billion dollars a week. big frustration was never seeing latin american entrepreneurs. so we decided to explore and see what was going on. first of all it is a market that needs disruption because pretty much if something doesn't work well, you can fix a lot of things. the problem was lack of capital. when we landed in latin american 2019 the total winter technologies where the tune of $1.5 billion. so we decided to launch a tech fund, and it was the first one. the first two years we invested to the tune of $2.6 billion and the third year it is $5 billion.

what has surprised us the most, latin america is as good as any part of the world, the business models that have been deployed in india, china, and the u.s. are starting to boom in the u.s.. it gives a competitive edge, and we see high quality entrepreneurs launching these great companies. as of the last quarter we have deployed about $3.5 billion in capital and the returns have been exceptional. 90% on a gross basis in u.s. dollars, making it one of the best performing stocks in softbank. the need for venture capital is needed in latin america.

this year we plan to deploy fabienne dollars in latin america. caroline: you have done it and now a lot of other people are putting money to work in the area. >> i think valuations are always a hot topic. the type of growth were seeing with latin american portfolio companies is magnificent. we believe the evaluations are right where they should be. latin american companies are ipo owing in the u.s., they are worth $5 billion today. my prediction is next year will be the most important year in latin american history for ipo's. we expect a lot of ipo activity from latin american technology companies in u.s. markets next year. caroline: i know the fund will allow you to be private and

public purchasing. do you have any guidance on the next couple of years? >> the latin american fund is different. we have no rules in terms of how long we can hold an investment, how small an investment should become a private, public, and so on. we have public companies, we have private companies, we have early-stage growth, we have digital transformation. that's the beauty of a latin american fund. we are able to dedicate it to technology. we look at it like any other private investment and what the private potential -- potential of the growth of that company is.

softbank is well known for being patient capital. we are good in terms of holding investments for a minimum to 30% irr. we also launched a spac in latin america. it really doesn't matter, obviously we want to make sure that the company is going to be a great company before we go public. we want to make sure they are ready for the public market. so far, so good. we had a couple of ipo's and i think great success stories investing in a valuation of $2 billion. when you fast-forward they are the leading insurance marketplace and one of the most advanced banks in the world in terms of e-commerce. people link to different e-commerce sites and the transactions get finance on the spot. it has been going on for 30 years. so it is great, and if i'm not mistaken the market cap is over $10 billion in a couple of years ago it was 2. not only the number of digital customers tracked but the expansion of products, it is

fascinating to see a brazilian bank serving customers in the u.s. so as you can see, i am in love with everything that is going on in latin america. caroline: wework is a company that is looking to exit and is it going to be in october or q4? >> i think we are relatively

close to that. we work is a fascinating story of a company. i became the executive chairman exactly two years ago and i'm getting ready to do a town hall with employees. i started looking at what the press thought of we work two years ago, and what a remarkable change it has been. a couple of months ago we had higher sales. prior to the pandemic, we've had our highest net sales ever in the history of the company. i think being set up for a hybrid workspace is more important than ever. no one really knows what's going to happen in the future but we know it will be a different type of work than what we are used to .

flexibility will be the most important part of it, employees having flexibility on how many days they come to work. one of my biggest satisfactions has been because of real estate, you can basically use uber for a ride and you can rent a desk by the hour that buildings all over the world. it is amazing the amount of production you have, the people are coming in by the hour, but the day, by the week. it is fascinating. we made some projections that within the next 12 months we would be a profitable company. and to think of two years ago when we had multibillion dollars of losses. i am proud of the ceo that i hired and i'm proud of the team because of the remarkable turnaround.

caroline: you are known as the turnaround king with your previous entrepreneurship. you are also known as a dealmaker. the video arm, is that a deal that is going to go through? >> beasley can't comment. what i know is that it is an incredible company. it occupies one of the most important parts, it is a great company. the sprint and t-mobile merger, we have a lot of faith that it's such a rate transaction, so hopefully it will get done. if it doesn't, it still has a bright future. caroline: your career was born with soccer and i know that is passion of yours. i wish we had more time.

coming up, we talk about latin america and future investment. we will hear from a founder on whether it's true that artificial intelligence will take away many jobs. this is bloomberg. ♪

caroline: turbotax, quickbooks, despite regulatory crackdowns, the ceo says he is not worried.

>> they've been great at helping small business grow their business. we've been great at helping small business run their business, so never going to put those together, which fundamentally creates magic. we believe the regulators will see the benefit for customers and we feel confident about the future. caroline: meanwhile the plan is for the largest deal to date. the acceleration of ai is feared by many. the fear of robots taking over the world remains embedded in our mind. the author of a new book and founder of's innovation discussed how ai will transform the next few decades. >> i think technology changes a lot in 20 years. i think about 20 years ago, how we would feel today if we described our lives today 20 years ago.

>> there are extreme visions for how ai will change our lives, the dystopian versus the utopian, the terminator versus the jetson versus black mirror. where do you fall in that? >> i am an optimist, but i acknowledge both sides are possible. dystopian is not where ai takes over and we are all being manipulated. i don't think that's going to happen. ai is a neutral technology. it can be used positively or negatively. it is particularly powerful because it does a lot of things that people do, so we will have to see how it works out. >> you have a nuanced view on jobs. one of the more extreme views is that ai is going to take all the jobs away. >> i think most of the jobs as we know them today will be gone and ai will be doing them for us, but there will be new jobs.

just as with any technology revolution, electricity, internet, the automatic elevator and uber, they have all taken jobs and put jobs back. so that is my expectation. ai is best at doing teen jobs, so those are going to be gone. but ai doesn't have a lot of qualities that we do such as creativity and compassion, and working with people and gaining trust, and strategic thinking. some more of us will get to do more exciting jobs as ayotte liberates us from having to do routine jobs. >> one of your company's was working on an ai news anchor. will my job exist in 20 years? >> your job will exist, because you are very good at it, but many other journalist jobs, as well as interviewer and anchor jobs will be displaced because ai will become increasingly good at asking questions, answering

them, and creating excitement and interest. we are seeing great progress in language these days. it can be used positively to project an engaging personality which may be imitating someone real like yourself, or someone completely new and virtual. >> i guess the question is, why should we not be terrified by this? the computer can trick you into thinking you are an actual person. >> i think there needs to be clear acknowledgment when there is a computer so there is no effort to deceive people, for sure.

but also, i think if ai is able to do the job of an entry-level journalist, writing about a quarterly report or sporting event, that is so much work that good journalists don't have to do, so that journalist can learn and grow and compete to become a columnist or a great interviewer and don't have to do the relative routine parts of journalism. also ai can be a tool that will find interesting context and opposing views and help craft messaging and ensure there are no mistakes. so it is a symbiosis, though really people who are naturally good and passionate and work hard will get to really shine in this environment.

one cannot just expect to be a routine journalist, or someone who is mediocre. one really has to strive to be very good. >> if most of the jobs that exist today one exist, let's talk about quantity. will there be? ? enough jobs to go around will people need to work to survive? >> i think there will be a lot of new jobs created by ai. people will get to repair robots, there will be many people who for a while anyway will get to label data and collect data and clean data, because ai depends on data. more such jobs will come and go. but the largest number of jobs that will be available will be in the service industry, where there is warmth and human connection that is created. that ai will try to emulate, but will not do a good job. you are right, i'm not sure there's enough jobs to fulfill 40 or 50 hours meaningfully. >> what will an entry-level job in 2041 look like?

>> that is a very tricky issue. if all the routine entry-level jobs are taken by ai, how does someone get the practice to be a bloomberg anchor or a scientist or a great accountant or lawyer? we imagine that there will be a new profession called job reallocater. that is when a company lays off an entire department because ai is doing the work. the job reallocater comes over and the government offers universal basic income, but that's not enough. there needs to be specific training and also help psychologically for people to get over the meaning of their life changing their job to a new job or something different, and customizing the training and reassignment of a job for each

person. and it may actually be necessary to offer some people jobs that are virtual, that they think are real, but maybe or not, or maybe it is borderline real and not real. so as to give them the sense that they are contributing, but actually they are learning and growing, and it is in entry-level job, but the job itself is merely a practice for them to grow. caroline: all things ai, check out his new book. coming up, first it was virgin galactic, then blue origin, now the trifecta in space. will have an update on the mission of the next crew. that is next. this is bloomberg. ♪

caroline: spacex is set to launch its first all civilian crew on wednesday. i want to bring in ed ludlow. a press conference with the crew has just wrapped up at the launch pad. ed: it's amazing how calm this appeal -- the civilian crew is. this is not sub-orbital, it is orbital. jeff bezos went about six miles above earth read this crew will go 300 miles above the earth. if something goes wrong over the course of three days, the commander and the pilot will have to take over and intervene, especially if they lose communication with spacex.

caroline: extraordinary photos we are seeing. what should we look for ahead of the event? ed: it has been an intense five months of training. they've learned what to do if somebody gets sick. they've have had all sorts of emergency scenarios. it's about a 30 minute from journey -- journey from liftoff to orbit. it's been completely calculated. they're hoping everything goes smoothly. the ceo paid for the entire mission. you have a cancer survivor, and someone who is just in it for the fun. caroline: ed ludlow at cape canaveral, thank you. that does it for this issue of bloomberg technology.

be sure to tune in tomorrow. this is bloomberg. ♪

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