>> from the heart of where innovation money, and power collide in silicon valley and the audit this is newburgh technology with emily chang. -- bloomberg technology with emily chang. emily: this is bloomberg technology. coming up in the next hour, a panel of fda advisers pulls back on the idea of boosters for all, instead, backing boosters for a smaller group of more vulnerable

people. what does it mean? we will dig in. plus, 360 miles above the earth. four civilian astronauts are near the end of an epic journey. we will get an update. is holding elizabeth holmes accountable sexist? the under -- the author of a controversial piece joins us. you will recognize her name. the project includes ceo ellen powell was us now. first, a look at the markets with ed ludlow. i see a lot of red at the end of the week. welcome. ed: if you times of the year, you see index and equity options expiring. and, high-volume as a result. you see the s&p 500 down 9/10 of 1% and technology the under performer.

the nasdaq 100 biggest drop since may. there is a little weakness in semiconductors as well. down 1.5%. really interesting moves in the cryptocurrency space. the bloomberg crypto index is down significantly, 2%. you see bitcoin lower at the moment. it has been up for most of the day. it was interesting to see the broader index of cryptocurrency's down, even though bitcoin had been higher. what we have seen lately is more influence from etherium. pretty significant losses friday, same with light going. pfizer biontech. the fbi told advisors i would not back a booster that they would not back a -- the fda told advisors they would not back a booster for all. pfizer is finishing down 1.3%. finally, adr of biontech closing

down 3.6% credit. -- 3.6%. emily: fda advisors voted against a third shot of pfizer for everyone 16 and older. however, they do support a booster for older and vulnerable people. >> we had two votes today from an fda panel of advisors. we will have other votes coming up. basically they said two things. first, they did not think everybody 16 and older should get a booster shot. that is a bit of surprise given that the biden administration has been talking as though we would all be getting these soon. their second vote, which was

unanimous, 18 to zero, was that people who are at high risk, 65 and older, who had high risk of serious illness or death from covid, they should get a booster shot. of course, it is a much smaller group then we shot -- thought might be getting those shots within six to eight months of their final vaccine. so, this is a question now of who are we talking about? when will they get it? emily: absolutely. it is alarming. we are at the same time getting waning efficacy data from these companies. i know folks who have already gotten a booster who do not fit into that category, that a narrower category. so, how does this play out? isn't the cdc also coming out with a decision? >> this was an advisory board. we will hear from the fda itself and the cdc, and advisory board to them next week as well. there could be differing views.

there is a political element as well. we have heard from the biden administration and joe biden himself, in recent weeks, acting as though they had target data, actually, this monday, for starting to get to those boosters. the question will be, welded they come out -- why did they come out and support this before their own scientists? maybe next week we will see some division. maybe the cdc will say we are more comfortable with everyone getting at. although, it is hard to say what happened given that the fda expert panel said that they were concerned about risks to younger people having the booster and was not sure if was needed for everybody. emily: tell us about those risks. jod: there are two questions here. first, the need. given the fact that the two shots, the double booster for oh

the vaccine for pfizer, moderna, and the one for j&j, that those two shots give you such a degree of efficacy that it is not needed. they say if it is not really needed and there is a risk for younger people developing side effects and symptoms that it is not worth it. they were looking at those two questions in tandem. alexandre: -- emily: thank you for clarifying. the biden administration reportedly wants to make it harder for hackers to use cryptocurrency to profit from ransomware attack's. according to dow jones, the government number -- the government is preparing sanctions, trying to cut off access to a form of payment

supporting a burgeoning criminal industry. jesse westberg -- westbrook joins us with more. walk us through the new efforts by the administration and what the goal is. jesse: we remember in the spring there was a rash of tax. as always, they demand crypto as payment. it is largely -- i mean it is untraceable to the degree that you can find the transaction, but you cannot ultimately find the employee pocketing the money. the theory is if you cut off the ability to access, you could stop the hacks. a question i have about this is who do you sanction. do you sanction the trading platforms? i don't think you can sanction individual crypto traders. so, it will be interesting to see how they go about turn to

enforce this. emily: it sounds like this will be incredibly challenging and not an easy path forward. jesse: if you are using a cryptocurrency to demand bribery, at some point, you want to exchange that crypto into fiat currency and presumably you would have to go through some sort of regulative financial intermediary to ultimately do that. so maybe, one will you do this is you sanction a trading platform, a crypto exchange, perhaps. then, you make it impossible for any regulative financial institution be at a bank or some sort of other financial services company to transact, in any way, shape, or form, was that crypto platform. maybe, that is a way you make it hard for these criminals to exchange, to transfer their cryptocurrency into actual fiat currency.

that is just a theory. we will see what they announced. alexandre: -- emily: there is a popular misconception that using cryptocurrencies to pull off crimes makes it harder to track you down. when in fact, cryptocurrency can be very trackable. is it good or bad? jesse: that is how people who are big advocates of crypto about jane, they say, this is great. -- en bloc chain. they say, this -- and block chain. they say, this is great. at the end of the change are anonymous people. you may be able figure out a crypto transaction happened. but it is impossible to figure out who is behind it unless you

go to these exchanges and say, tell us he was behind the transaction. crypto exchanges have been hesitant to do that. there were some instances where the hacks -- with the hacks this spring where information was provided to u.s. authorities. but it has been pretty hit-or-miss. emily: bloomberg jesse westbrook , thank you. in the meantime, a u.s. investigation into binance holdings has expanded. authorities will examine possible insider trading. officials have been looking into whether binance and staff profited by looking into that -- by taking advantage of customers. biotech asks the new york stock exchange.

we speak with jason kelly about their latest back and his company's role in the vaccine -- their latest spac and his role -- his company's role in the vaccine and booster debate.

♪ >> we have to figure out that on the one hand there is much to worry about coming from our tech companies on privacy, market concentration, and what they are doing, to the nature of our public dialogue and public policy there. they are also our national champions in important respects, in key areas of competition around the globe.

what secretary panetta was stretching. -- stressing. we have to make a policy that integrates those realities. >> ginkgo bio works is headed to the public markets thanks to a spac merger led by former mgm ceo harry sloan. joining me now is ceo jason kelly. ringing the bell at the new york stock exchange, it is a big day for you. what has this spac made possible for your business? >> this is the largest biotech

ipo in history. we operate as a horizontal platform. our platform gets better with scale. west civilian six coming in the door, we will build a bigger facilities, lower costs, and offer better products. >> >> it is often hard to understand how revolutionary the work you are doing is. paint the picture for us about how this could change our daily lives, if you pull it off. >> i will give you a recent example. a few months ago, a company was acquired for $10 million. we announced we had transferred a program sell to them we had been working on for the last year. that cell produces an enzyme, an

ingredient used to make mrna vaccines. the program for them makes the ingredient 10 times more efficiently than the previous version. that is a way to hopefully expand the volume of vaccine production and lower cost. that is a program in the space. to give you another example, we shifted a couple of weeks before that to crone outside a canada. that is engineered yeast to produce cannabanoids. so two very different applications. >> mrna vaccines are on the mind. continuing vaccine hesitancy. now, a lot of booster confusion. this new decision is adding more confusion into the equation. how is this going to play out?

are we never going to return immunity because it there is never going to be full clarity? >> i think that at the right of delta, we will not reach herd immunity anyway. -- the infectiousness rate of delta, we will not reach herd immunity way. the goal is to reduce mortality. we will not get rid of this. it will end up being endemic, like the flu. the problem is that delta variant spreads kind of like a chicken for -- chickenpox. it will be endemic like the flu, but it is more annoying than the flu. it blows up our hospital systems. . it sends kids into quarantine. we have to work up a more robust bio security to deal with that. that'll be a missed -- mix of more vaccination and things like

surveillance testing. ginkgo is now the largest k-12 system in the country. to try to monitor schools in order to reduce infection, reduce quarantine, keep kids in schools. those are the tools we need for delta. it will not just go away. emily: take me out one year. where are we? what is daily pandemic lifelike? jason: i think you will have many more people vaccinated. as people get to know someone who has had a bad experience with covid, it just happens. i think that is one of the bigger drivers. also, things like the leadership president biden was a showing lead -- recently to move the needle with the country to get more vaccination. that will help push it. but at the end of the day, some people will choose not to do it. i think you will have a mix of vaccination and things like workplace testing.

that stuff will stick around for the next year or two in my opinion. . emily: what other breakthroughs will you see? >> if you have asked that had asked people before covid the likelihood of mrna vaccines work , let alone, having the applications they did, people would not have expected that. i think this proves a whole category of drugs. this is why you have seen madera to do so well. there are many things as moderna do so well -- moderna do so well. >> emily: jason, it is always good to have year. regulations. -- congratulations. coming up, getting your financial advice from tiktok.

sin -- sin --finfluencing. another big week ahead in text. don't underestimate disney. fan favorites. tuesday, more earnings, adobe and stitch fix are out. we will see more discussions on boosters from the cdc and what recommendations they make. thursday, the white house post a summit with companies in the semiconductor supply chain. we will bring you the details. this is bloomberg.

>> etf and mutual funds are like

meghan markle and kate middleton. >> that is the tiktok of hilly stacks, also known as misses dow jones on social media giving the low down on the difference between etf's and mutual funds area big banks and -- funds. big banks who have struggled to reach new customers may have a solution, young tiktok stars who have found big money in being a wall street influencer. one claims to be making half $1 million a year and some of his pay in company equities. this is such a fascinating story. talk to us about who they are and who they -- how they are

changing wall street? >> influencers have existed since social media took off. they are just starting to trickle into the finance industry. what is interesting is that makes sense. you look at the post-pandemic economy. you look at the stock market. there are so many people out there who are begging for personal-finance content online. they just want to get in on it. there is massive appetite for people to learn how to better manage money. individuals like austin, one person we spoke to in the story, like haley stacks, are taking advantage of that demand. they are putting out content that people feel like is more digestible, is more relatable. in doing so, people have amassed massive followings. those are all potential customers.

companies we spoke to are telling us they are now hiring these people to plug products on their content. they are paying them a lot of money to do so. emily: are they also vetting them? are they checking the accuracy of their content? it is effective and simple to compare -- compare ets, is it necessarily the way you want everybody to be understanding more nuanced concepts? >> there is definitely a dark side to getting information from social media. it is hard to talk about financial influencers without bringing in misinformation. companies we spoke to were very adamant about having very

vetting processes to decide what people they are going to bring in to payrolls. these are people that have background checks and people that signed contracts with stipulations that allowed the companies to con -- canceled the contract at any moment. i think they are doing their best to sift through individuals that are providing these services that they feel like they can vouch for. of course, it is definitely something that continues to be a problem when it comes to people, every day, consuming content online, especially financial advice. >> -- emily: such a fascinating story. elena, thank you for joining us. coming up, a new proposal could reverse the tax rate qualifies -- that qualified small business stockholders receive, leaving many facing very unwelcome

capital gains taxes. we will have the latest for what it means next.

>> >> welcome back to bloomberg technology. i'm energy chang -- emily chang. orbiting the planet in the spacex dragon capsule. it has already circled the earth several times. >> listen in. >>high everyone. i am the mission eyelet. that's the mission pilot. >> ed ludlow is with us.

he was there for launch. he has been tracking the mission. we have got new details on landing. what's new? >> the crew will be off the coast of florida at 7:00 6 p.m. eastern time saturday. that is just a few hours a shy of the orbit of the earth. they are doing well, thriving in a row g environment. -- a0 g environment. they will take -- a zero g environment. they will take readings that they will hand over to nasa when they get back to earth. they have been doing other things. don't take my word for it. we got this special performance. take a look. >> ♪ >> it still before coffee, so it

will get better as the day goes on. >> that was the mission specialist giving us a rendition on the ukulele. . 360 miles above the earth, greater altitude than the space station and hubble telescope. everyone i have spoken to has put it simply. this is a bigger step forward than what we saw from bezos and branson. we will be tuned in this weekend to make sure they splashed down on the coast of florida safely. emily: we will be watching for that tomorrow. waves have been made in silicon valley. house democrats have repealed to repeal the qualified small business tax break which eliminates capital gains for those who invest in tech startup

bread and butter. joining me is andrea walls. there is not a boardroom in silicon valley that has not been talking about this. give us the simple version. what is qfc s -- usps? who does that impact quest ----qfps? who does that impact? >> it allows them to get up to a 100% tax exemption for a big portion of the stock. emily: there are battle lines being drawn in congress over this. why is congress proposing this change? >> i think the whole point that congress is driving toward we have given up a lot of dollars to silicon valley to make money off of their investment deals and early startups by way of

giving them tax exemption over the last 30 years. the real issue here is that congress needs to appreciate that folks like elon musk and jeff bezos are not necessarily representative of the entire immunity. a lot of folks implemented -- impacted by this -- impacted by this are those building the startups, entrepreneurs who are the backbone of silicon valley. it will have a big impact on how venture capitalists and start up. emily: are you saying elon musk and jeff bezos have ruined silicon valley taxes for everyone? andrea: they represent a very small percentage of what the real entrepreneurs are building. a lot of these folks are not

necessarily making as much money as you might think. the general concern is that this will stifle innovation and impact of the people building startups and, quite frankly, you might think it will impact the investors, the venture capitalist, more. what we are all worried about is generally what the impact is on the entrepreneur as well as entrepreneurs who might be intrigued to come to silicon valley from other countries. it is not necessarily a great investment to keep driving innovation to the u.s.. the color under the proposed change type founders and investors would still get about .5 of the tax break, still a much lower rate than most investors play -- pay or worker's on wages. it is that enough to spur the invasion you are talking about? area: overall the key issue is that this was proposed out of

effectively nowhere. generally, many venture capitalist founders and otherwise were really planning and strategizing around this strategy for the next 10 years. they under wrote against the concept for their own exit. with that in mind, for this concept to be proposed, it is something where i think we are concerned that if this were to be a consideration, what else might come down through congress over time that would really throw for a loop the general strategy for fundraising in silicon valley. i believe: what does this ignore about fighters -- emily: what is the signal about bidens policies? andrea: people feel there is a growing disconnect between congress and startups driving innovation in this country. it grows the concern around what

really matters. representation for this is so limited relative to other proposed tax changes. i think they feel as of this is something that will be such a small blip on the overall radar of start up adventure capitalist -- adventure capitalist. we are concerned that this disconnect shows congress does not necessarily think about some of the little people who are necessarily building startups and are not the ones at the top 1%. italy: i know it is frustrating -- emily: i know it is frustrating. thank you for joining us. another tech story we are watching. tech giants lining up to harness data from indian farmers as part of an ambitious drive aimed at

transforming a outdated industry. mr. hoping coming up, the sports app that is not a sleeper. we will hear from the ceo of the company sleeper and find out more about its big-name backers and athletes. this is next on bloomberg.

>>\ 2021 has not been a good year for chinese billionaire colin wong.

according to the billionaires index is fortunate has dropped by $27 billion this year. no one has lost more. china's internet crackdown has led to the american depository to fault 44% this year. the fantasy sports app sleeper has quadrupled its valuation after its latest funding round. the startup already has a 3 million users and is looking at a wallet feature to enable payments between users. it has big backers including golden state warriors stars and a miami dolphins quarterback. the ceo spoke with us earlier. >> sports is one of those things that people get it started -- excited about. there is not much we have to do except offer a great product people can use with their friends. naturally, people want to want

to the game and enjoy it with people they care about. sleeper provides that experience. romaine: what separates you? this is a competitive space. there are so many places for fantasy sports. why would they come to sleeper? nan: our value proposition as we strengthen friendships through sports. everything you do on the product is multiplayer. you are either part of a broader community or with your close group of friends. when covid hit, a lot of us did not have interactions in the physical world with people we care about. by high school, we made it a fantasy league. it has not been closer to people i have not seen in 18 years.

. emily: part of your growth trajectory now is not just about building friendships. it is about being able to place real bad. it is about taking money, connecting wallets. are you worried this is just about friendship -- this will erode the fact that this is about friendship? man: --nan: wallets for us is to solve a real pain point. in a lotta fantasy leagues, there are dues to get into a league. it is like a social contract to not flake halfway through the season.

a lot of that is happening and people are having trouble collecting from their friends or forgetting to do so. collecting while it is to make that streamlined. that enables us to get creative about offering new game types. there is not -- a lot of money to be made and few apps that are social with a user wallet connected. taylor: there has been some pushback on the gameification and celebrating gambling. on your side there are emojis and giftsg --if --gifs you could share. are you getting pushback? nan: it is purposeful to get away from diehard sports and diehard gambling.

our view is, how do we create social experiences that are free to play, lightweight, and not just about trying to make money? we offer a very different value proposition than a betting app. so, that drives a lot of decision-making in the product. italy: coming up, -- emily: heading to break, let's look at the shares of zoom and a 59. the advisory firm institutional shareholder services said investors should reject it zooms land. iss warns that the deal could create more volatility for shareholders from the software maker. this is bloomberg.

>> the trial of elizabeth holmes kicked off last week. the founder and former ceo of thayer knows faces --theranos faces up to 20 years in prison. ellen powell says it can be sexist to hold her accountable. i want to bring in ellen powell now. -- ellen pao now. you have gotten a debate started with this. what do you mean? ellen: it has become such a

lightning rod. what people think about elizabeth holmes and what people think about tech. i think she should obviously be held accountable. the things that they have charged around the fraud and deception and what she knew at different times is true. but, why are we only holding her accountable? there is so much male privilege that the people who have had similar wrong doing who our men are not held accountable the same way elizabeth holmes has been. emily: there is lots of pushback against your op-ed. some people think it sounds like you are defending elizabeth holmes. are you? ellen: i am saying she should be held accountable. i don't know how to make it more clear. i just don't know how we should allow these male ceos to not be held accountable. i think we need to take this moment and say, we could hold ceos accountable. we should be holding everyone

doing things that are bad for their customers, bad for investors, bad for society accountable for their actions and their leadership as well. italy: you compare -- emily: you compare her to we work, uber, jewel --juul. is that fair? ellen: yes. at the horn by these companies as significant. look at uber. there are sloughs of customers whose have said they have been sexually assaulted by drivers. cooper knew about it and did not do anything. -- uber knew about it and did not do anything. it does not get much worse than that. juul built a market of vaping

into the youth market that was very small before they came in. it was i think 12% of high schoolers in 2017 had vaped recently. it went up to 28% in 2019. you see people harmed by vaping. 68 people died from vaping. juul has created that through all of this marketing to kids in schools. i just saw that massachusetts is a saying they were marketing on nickelodeon channels for very young children, not even high school aged. they are selling flavors that appealed to kids and building a market in market share in this audience. i don't know how you don't go after the ceo.

emily: a codefendant of elizabeth holmes. if the prosecution, as you argue, represents bias against women in favor of men, why is he a codefendant? ellen: i am focused on the ceos. if you are going to take down elizabeth holmes, you are going to take down the person who is working most closely with her. if you are going to call it a conspiracy, you cannot have a conspiracy on your own. you're going to bring in a person that has been the ceo or cfo -- cfo. they are turned down around her to build their case. -- trying to take down the people around her to build their case. >> emily: your argument does not include some important legal considerations. when prosecutors bring a criminal case, they need to be able to win. connecting homes to fraud and

other issues that the prosecutors alleged here is a more simple proposition than trying to connect mark zuckerberg to what is happening in myanmar or juul to what is happening to a generation of vapors. what do you think about that? ellen:juul has 2000 lame -- lawsuits against them and a lot are being handled by prosecutors. they just settled for $40 million in one case. i don't think it is that different. i think if anything they have gotten a lot more harm that people feel comfortable litigating around. so, i am not sure that actually works. annalee: you have been continuing to do pioneering work on how -- on diversity and how we can make places more inclusive. i am curious to what the reaction to your piece makes you think about progress and what

you are seeing in the new remote world? how is that affecting women and people of color in the workplace? or, the remote workplace? ellen: we have done some research on what workplaces have looked like since covid. we found that a lot of women, non-veterinary -- non-binary people, black people, indigenous people, and people in intersections of those groups are experiencing more harassment, harm, and hostility. there is more ageism. there is more able does it. it is all coming, -- there is more ableism. it is all coming even remotely. problems in our workplaces like discrimination and biases have not gone away. some people thought if you are not in the same room it is hard to sexually harass someone. actually, the harassers are

finding people online. they are finding ways to get to them one-on-one in conversations or on email. they do not seem to mind being in the same room. that has been very disturbing learning from the work we have done. from the last 24 hours, i have seen, i have heard from a lot of women ceos i know. they have been very supportive of this op-ed. i think they are living it. they know there is bias. they know there is privilege given to white men in the hunting industry -- the industry and the expectations and performance on the bar they have to cross that is much higher than what their counterparts who are male and white experience. that, i think, makes them understand the message i was trying to get across. we cannot continue to hold women to this higher bar.

mid should be held to this bar -- men should be held to this bar of not lying at harbor -- harming the customers and the community. emily: i asked about reddit. . certainly not without drama. what is your take? ellen: i think they are pushing hard to get to ipo. the last number i saw was 15 billion. from an anonymous source. unfortunately, they are taking the facebook path where it is like i want to drive engagement at all costs because that is what i will be measured on in the public market. the numbers that they share our of users, numbers of monthly users. that is not a healthy pass.

emily: i appreciate you weighing in. check out her op-ed in the new york times. that doesn't for this edition of bloomberg technology. a stay tuned. for wall street week with mike holly and david weston, i have been bleaching in san francisco and this is bloomberg. -- i am emily chang in san francisco and this is bloomberg.

david: crosscurrents in the economic data, in the virus, and in the markets as we look for direction. this is bloomberg "wall street week." i'm david westin. this week, special contributor larry summers on the numbers of whether we need to be as concerned about inflation as we thought. larry: the figures this week actually looked more ominous relative to history. david: and blair ephron on what -- thinks about the tax debate that's raising down in washington -- raging down in washington. >>