♪ >> from the heart of where innovation, money, and power collide. in silicon valley and beyond, this is "bloomberg technology" with emily chang. ♪ emily: i am emily chang in san francisco, and this is "bloomberg technology." uninvestable coming up, senators say they are unconvinced by graham's new features.

a senator proposes an idea to fix what is broken. plus it is not the only tech exact facing lawmakers, a number of crypto executives also testifying in washington. what it could signal about regulation ahead. pfizer and biontech out with new results that could accelerate star that's. a conversation with the pfizer ceo about the new jab they are working on specific to omicron. the tech rally is continuing. pfizer/biontech says there booster is effective against omicron. joining us is ed ludlow. any good news? ed: we are recovering from the volatility, there were some concerns over the omicron variant. key in the mind of investors. we eked out a third day of gains. the nasdaq was up 0.4% following its biggest 2-day gain since

april. one-week area in the market, it was semiconductors, coming down 0.6%. we are coming from a high bar. apple, big megacap stocks leading the way on wednesdays session. we will talk about apple later in the show. similar story in crypto-currencies. kind of recovering from volatility over the course of the month. this is a five-day chart of the crypto index. it is largely made up of bitcoin and ethereum. bitcoin is going through choppy trading on wednesday. not so much gains. ethereum is much better, up 3% along with litecoin. not seeing any significant gains as part of that recovery. one stock not doing that well, no reason or writing for that, but it was one of the west performers in the basket of megacap stocks.

we had been paying such close attention to pfizer and biontech. both those stocks were softer on wednesday. pfizer saying the booster is more effective against the omicron variant than simply having two initial doses, also saying we will have much more data going into the new year. time and again we have talked about this, the market right now is looking for data on the omicron variant. emily: indeed. it boosters. instagram facing the rage. the ceo testifying today before the u.s. senate subcommittee on consumer protection, a day after instagram said it is now encouraging it users to take a break from the platform, and nudging them towards healthier topics. lawmakers were not impressed. >> a day before this hearing, instagram announced a set of proposals, simple time management and parental oversight rules, they could have

and should have been announced years ago. they weren't. in fact, these changes fall way short of what we need. emily: i want to bring in the founder and ceo of the chamber of progress, who previously worked for many years at google, as well as bloombergs naomi nix for a deep dive on this topic. naomi, let's start with you. testy exchanges, some very pointed questions from lawmakers but, he seemed more comfortable in the room than his boss. what are your takeaways? naomi: we saw two very different pictures being painted about the effect instagram has on young users and white instagram is -- what instagram is looking to do about it. we saw adam offer a defense of the company's network. he said he thinks some of the controversies over it internal research are essentially overplayed, he said the company

plays a positive role in the well-being of some young users. and they have been a number of things instagram is doing to tackle things like potential user addiction, problematic content that this is an industrywide problem. but lawmakers were also, like, look, instagram is to take more responsibility for all the issues we have been hearing about from parents. emily: there was a specific exchange with senator klobuchar about the time limit instagram is offering to its users. again, these are opt-in, so our user gets to choose how much time. the time limit being three hours. take a listen to this.

sen. klobuchar: you think three hours a days at an appropriate amount of time for kids to spend on instagram? >> senator -- sen. klobuchar: i am asking this, because three hours a day, is that a good use of kids' time? >> i am a parent and i can understand parents have concerns about how much screen time kids have. i ultimately think that a parent knows best what is best for their kid. the appropriate amount of time should be a decision about the specific teen. if a parent was to set that limit at 10 minutes, and another one to three hours, who am i to say i don't know what is best for their children? emily: he is saying the responsibility is on parents. douyu actually -- do you agree ? >> i am a parent, too, and i

value all the services software have built over the last years to give me more control. so i don't know that i would let my kids be on anything for three hours. my kids are young. for older teenagers, maybe those rules might make more sense. that speaks to something that also came up in the hearing today, which is that we need different approaches for different ages of kids. one of the most successful global norms that emerged has been the united kingdom's what they call "age-appropriate design code." because unlike the u.s., which has the richest threshold of age 13, the u.k. design code differentiates between younger kids, tweens and teens and recommends different levels of control.

i think codes like that will continue to be the norm and you will see more and more services like instagram design to those recommendations. emily: that is three hours really good for anyone? whether they are 13 or 25 or 65, is three hours good for anyone to be spending on instagram? that was really senator klobuchar's question. >> i think she has a good point. maybe instagram after hearing that question will say, maybe that is a little high for the upper bound limit. these tools have enrolled up yet. maybe it is a point of feedback for the company to say, maybe that is high. emily: there was another exchange between senator marsha blackburn and adam mosseri about the time he sat down with jojo siwa, the youtube star, and she indicated she has been on instagram since he was a young child. take a listen to that exchange with senator blackburn red sen. blackburn: at that moment when you responded to her that you

didn't want to know, wouldn't you use that as a teaching moment? adam: connector, i would say it was a missed opportunity. sen. blackburn: indeed, and it sends the wrong message. it looked as if you were encouraging kids that want to be online stars to build their audience. this is a part of our frustration. emily: naomi, he did ultimately admit he was wrong. does this speak to the don't ask, don't tell approach these companies have had for so long towards children? naomi: instagram always started investing its technological resources to identify the true age of its youngest users at around 2019. the company has not at that work for so long. one of the other things we saw adam stay at the hearing was that he thinks this idea of

identifying a user's true age, that it should fall to some of the device makers, that it was an-industry--wide problem. we saw him dragging his feet. emily: curious what your take is , one at the age of the person setting the device should be set at the device level, not the app . just the idea that outside bodies should set the rules. what are your thoughts on his proposal? adam: age verification for younger users is one of those problems that is -- that has just bedeviled tech services for a long time because there is not a great way of doing it. having said that, my understanding is that some of the companies that have tried and had the most success are

services like xbox, where the age verification process is hardware-level, and a parent has to be involved in the set up. so the same principle certainly could be applied to a smartphone or other hardware devices. it would require industry collaboration. it also could end up being a differentiator for whatever company chose to implement that tech, in terms of really having reliable age-verification built-in. emily: certainly much to continue to follow. we will be watching how washington digests this new testimony. adam kovacevich from the chamber of progress, thank you so much, along with our very own naomi nix. appreciate it. regulators are reviewing a recent software by tesla that allows drivers to play videogames on the dashboard screen where the vehicle is moving.

the national highway traffic safety administration says in-vehicle devices can't be used by drivers for distractions like playing games while driving. coming up, crypto also in the hot seat on capitol hill. the ceos of some of the biggest crypto companies sound off on the need for regulation. there is still a lot left to understand. that is next. this is bloomberg. ♪

>> currently, cryptocurrency markets have no overarching or centralized regulatory framework , leading investment in the digital assets race vulnerable

to fraud, manipulation, and abuse. >> let's dispel the rumor that digital asset technology is a threat to our system. i would argue that the technology we are discussing will have just as big an impact on our daily lives if more. that's why we must get this right. emily: top lawmakers holding another hearing on the hilt with some of the biggest names in crypto, including the ceo of the ftx derivatives exchange, and brian brooks, who now runs a crypto mini. they focused on the challenges of innovation. for more, let's get to mike mcglone who was watching the hearing. one where the big takeaways and what do you think this could mean for the future of crypto regulation? mike: what i see it is that they are going down the rabbit hole. they are learning from some of the leaders in this space.

one of the key things that struck me was when they talk about crypto coins which are really digital crypto dollars. people thought bitcoin was usurping the dollar. crypto dollars are becoming dominant on the planet. the dollar is becoming dominant too. that was one of the things they importantly addressed. what i sensed overall is that they are going down the rabbit hole and learning about this, and learning about how the technology is helping the unbanked in the world. emily: they also talked about how many crypto startups are moving overseas because of the uncertainty about regulation in the united states. could that force the hand of u.s. regulators or even lead to potentially global regulation? mike: i am glad you captured that. i heard brian brooks.

he said canada is moving ahead of us, europe is moving ahead of us. so i think it was important to make that point that we don't want to fall behind. to me that is a good, valid point. as long as we regulate it properly. emily: mike mcglone, thanks for breaking the hearing down. coming up, landed labs goes public. we will talk to the ceo will marshall about his vision, and the future of the satellite imaging industry, next. and gamestop shares falling in extended trading. the company, widely regarded as the first meme stock, reported a third-quarter loss. investors are concerned about how the struggling retailer intends to reshape its operations and lure gamers back.

this is bloomberg. ♪

emily: former tech executive meg whitman has a new role, and not in the corporate world. the former ceo of ebay's president biden's picked as u.s. ambassador to kenya. until earlier this year, she was chief executive of the media content app quibi.

she also ran for governor of california. planet labs is now a spac. the company provides a daily data insights to the likes of google, but also scientists, ngos, and farmers. where is a company headed next? ceo will marshall joins us from new york. a big for you. talk to us about what this milestone means in terms of where and how you plan to invest? will: absolutely. this is a super exciting day, listing after 10 years of really hard work by our team. we set out with an audacious goal of imaging the whole world, and we achieved that. we got the 200 satellites up there. there are some great use cases like with farmers, google, many scientists. where we are going, is to invest in software, to have analytics, to pull out information from the images, as well as seals, to go after the huge market.

this is just the tip of the iceberg of the planet's potential, so this gives us capital to go after that. emily: from government to farmers. what are the new markets you actually see? will: those existing markets are huge. all of the companies, government, google, energy companies, forestry companies. but the new sector we are going to will be exciting as well, things like insurance, finance. in many of these sectors, the principal value of the data is huge. for example in finance, the worldwide yield of corn or soy, we can calculate that before anyone else. . we have that data. they want time-series calibrated data and we have that integrated. we have the satellites, the data, certain analytics product. as we build up our software

stack, we will enable more users. our colleague, he used to be the head of product at twitter, he said it was a firehose of data, but it wasn't useful to the companies. we have a similar situation, if firehose of data from space. it is our job now to make it easier and easier for more and more people to access. emily: planet labs had a huge lead over rivals, now there are more and more imaging companies and we expect that to continue as the cost of entry comes down. you think it moves fast enough? and do you see products beyond imaging technology? will: firstly, competition is great. there is a bit of a space renaissance going on and it is exciting. costs have come down, satellite capability performance have come down. cost capability of satellites has gone up 1000 in the lastx 10

years. a massive change. it is our internet moment. that is really exciting and unleashing a great deal of opportunity. planet has got a unique data set. we have the largest earth imaging fleet, 200 satellites that image every day. that opens up a wide new market. no one else has that. no one has anything like that scan of the planet. we have quite some years before anyone has anything like this, of a similar capability. emily: planet started off like a nonprofit focused on environmental issue. talk to us about the evolution to now a publicly traded company. why did you decide that was the most opportunistic route? will: actually, we have always tried to serve with businesses and nonprofits and scientists and ngos all the same. the good thing about our planet is that our business model and our goal and mission are

completely aligned. even when we sell farmers, making the crop yield more efficient is stopping deforestation, the main source of deforestation is agricultural land being expanded into forested territory. so, making agriculture more efficient does a good thing for the planet. our main thing, business, does a good thing for the planet. when we work with ngos, to, say, map the coral reef, that is an impactful project as well. they are both at the same time happening through our core business. that is why we are really excited to be going public as a public benefit corporation, which makes it the duty of the director to care about the mission, which, is basically using space to help life on earth as well as shareholder and stakeholder value. we are in the early stage of using this new form of a big benefit corporation as we go public. emily: what are the effects erc

from the supply chain crunch? will: our numbers are relatively low. we typically launch 50 or so satellites a year. -- type of volume can just stock the supply. we monitor the supply chains forms. we have companies by our data track where it is our footage come from? is it coming from a sustainable source? this touches on esg, because all companies are trying to track their supply chains, to check for their sustainable sources. all the countries of the world are trying to measure their emissions. i was at the glasgow climate conference. it is critical to other targets set for those countries. so, we can help with the supply chain challenge as well. emily: good to know. planet labs ceo, will marshall.

congrats. thanks for joining us. . shopping season in full swing. we will check up -- catch up with julie wainwright next. this is bloomberg. ♪ hey, angie! you forgot your phone!

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♪ emily: welcome back. shares of apple closing at a fresh record high for a third consecutive day after a federal appears -- appeals court granted its wish of delaying court mended changes to the app store. adding to a big week. i have ed ludlow to break it down. just yesterday apple crossed $1 trillion, now we are looking at $3 trillion. ed: three is a magic number. three days, three consecutive record highs.

that's three day stretch of gains is the best three days apple has had since january. there is loads of momentum around the stock. in the headline hit the terminal about the appeals court giving them reprieve, it was to be expected they would have had to make i -- bid 2018 we hit $1 trillion market cap. mid-august 2020, 2 trillion. we are close to $3 trillion. this is a company that is actually only trading at around 30 times its projected profit for the next 12 months. that is reasonable. tesla trades at 127 times its 12 month projected profit. what you hear in the market is we are seeing a fed that my tighten. rates might come up. tech stocks stretched might suffer. not apple. apple is a bit of a bargain. one quick stat, apple is worth more than the entire stock

market of germany. and saudi arabia. emily: mind blowing. we are full swing this holiday shopping season. shoppers are increasingly being drawn to resale. the consignment marketplace for luxury goods. consumers are embracing a more sustainable way to shop while enjoying flashing their luxury bags and clothing. joining me now is realreal ceo julie wainwright. great to have you here. what are shoppers buying this season? >> we had a record day for the company on black friday. our business overall is up 50% versus a year ago. i would say in buying the lot, resale is in gifting. they are buying rolex, high valued handbags. a lot of gucci.

gucci is trending for gifting. emily: i love searching for vintage and antique finds for myself, but there seems to be a stigma about gifting something secondhand. >> it changed a few years ago. emily: i can do that? >> absolutely. you can also search for things with tags on the side. those are -- we can't say new, but if they are pristine with tags, you had better buy. emily: there are more that are -- there are more competitors and i'm curious how you are seeing that competition play out and if you are seeing it impact supply. >> there are a lot of competitors at the low end. they are not competitors who are direct with us. our focus on luxury combined with our service and the fact we authenticate with the customer means we still are alone in our sector in the luxury consignment

market. when you think about this time and how busy people are, our consignors are not going to sell post. we do the work for them. people feel comfortable transacting on our site. your stores have been hit by a wave of retail -- emily: your stores have been hit by a time of retail crime. i saw your store in miller valley boarded up. it is a hard time for a lot of people. how has this impacted the realreal? >> there -- retail has been very important to us but it is not material when it comes to our percent of gmb. 30% of our new consignment comes from our brick and mortar. and, you can imagine any kind of robbery is devastating to the employee. we have been hit by mob robbery. it is a serious problem in

california. it has happened in new york. this is not a police problem, this is a problem with criminals not being prosecuted for retail or property crimes. it is a serious problem. emily: the conversations you have had with officials, what do those conversations involve? a lot of people saying boo-hoo, while some people can't put a roof over their head. >> it is not about us being robbed, it is about having this kind of activity in your own community. when you start thinking about mob robberies happening all across the u.s., but heavily in california and new york, you have to think about what does that do to the restaurants? what does that do to safety in the streets? it is a serious problem. the most serious thing is if you do not hold anyone accountable

for personal or retail property crimes, it creates anarchy. that is what is happening emily: . are you doing in -- emily: are you doing anything given the threat of this happening? there are stores boarded up across san francisco. >> stores are boarded up in los angeles, and what we do is we put in stronger glass, safe rooms, extra security. even then, until we feel like these local governments can provide us with the security we need that the police will respond to a retail client -- this is not a police issue. the police can arrest people. in palo alto they arrested people. and then they were let go due to the court systems. no one wants to arrest people and have them let go before they

are even booked. we have a serious problem. i do not think it is going to get better until we start changing the way we treat criminals. emily: what does it mean for employees? >> three quit right away. i don't blame them. we have great relationships with our customers and consignors. the people in retail overall, specifically our stores, love that interaction. they love they are back in the story. they love helping people. it is not good for anyone. emily: let's talk about how you see the season playing out. more shoppers started earlier this year. does that mean december is going to be soft? do you see this continuing through the holidays? is the season not going to stand out? >> we reported through the end of november. we are up 50% versus a year ago. we think the rest of the year is going to be strong.

part of it is we have an amazing supply on site. we are delivering, our sales are driven by how much volume we have on the site. we are adding 10,000 new things every day. shoppers are responding. emily: i know you are always working on new technologies and tactics to make sure the louis vuitton bag you are selling is real louis vuitton. what are the latest tricks some of the folks putting fake stuff on the market have up their sleeve? >> we used a lot of machine learning and ai until we get smarter and smarter. at what point committee -- at one point, the industry was embracing blockchain. they have rfid tags and we saw a bunch of items with fake rfid tags. i would say it is an

ever-changing problem for everyone in the industry and we have to keep evolving our practices. emily: now that you have had these stores open for a while, how do you see the balance of typical retail shaping up? you have advocated for a long time we need both. what would be the balance of both? >> we are looking at that now but i can tell you the lifetime value of the consignor and buyer that has a retail touch point is significantly more than online only. having said that, a lot of customers prefer to shop online. more than 90% -- more than 90% of our sales are online but our consignors love the story. we have to find a right balance. i do not think we have found the answer yet and we are running an interesting test of a story within a story. brickle -- [indiscernible] >> we have a lot of things in

play. emily: julie wainwright, ceo of the realreal. thank you for giving us a view of all the things you are dealing with. happy holidays. >> same to you. emily: fed employees can work roma lee for all 2022. lyft revising an early requirement to be back at desks by february. the company is changing return dates yet again in response to the omicron variant. but if have gone as far as lyft to give workers a whole year. revolution chair and ceo steve case is with us to talk about where those venture dollars are heading. outside the bay area.

emily: a former ibm engineer helping companies fight the great resignation. ben -- cofounded clout.com and is one of thousands of startup managers helping people make a career move without having to leave their current employer. only one in four employees say their company makes it easy for them to find job opportunities. year after year, we have seen the same thing. venture capital money largely goes to three places in the u.s., the bay area, new york and boston. a new report out from revolution fines tack investing in those spots is on the decline about

$13 billion going outside those locations this year alone. for more, revolution chair and ceo steve chase, cofounder of aol. steve, in terms of the numbers, where are you seeing those dollars go instead? >> it is a lot of cities. there are a few that get attention like austin, seattle, miami, but it is dozens. we started -- a decade ago when i was -- we launched our bus tour, rides rs funds four years ago. we have invested in 180 companies in the 80 cities. this is widespread. the report we did come of the data is important. three points i would make. first, for the first time in 10 years, venture capital going to the bay area is less than 30%. there has been a 600% increase

in the last decade of these rise in tech cities to $24 billion. outside san francisco and new york, they have put on 600%. in the last decade, 1400 regional venture firms have started across the country. since it is important to see companies get them going, it is important to see funds. once you see that happening you start to see cities arise. you are seeing now an acceleration partly because of the pandemic that will continue. emily: you estimate 75% of all venture capital dollars still end up in the bay area, new york or boston. what do you think that number should actually be? what would be fair? >> given the distribution of talent and opportunity, over time it should level out. in the short run, the coming years see the rise in cities

double, that would be a great step. we have seen more momentum in past years, hopefully that will continue which means other states would go from 25% to 50%. the three big ones would go from 75% to 50%. over time, we know the bay is compelling. the opportunity is equally distributed, but the capital is not there to follow those ideas and that is what needs to change. this report suggests it is starting to change and hopefully it will accelerate. emily: do you have advice for policymakers about how they can better attract dollars? >> focus on new startups, not big companies. for too long, epic -- economic development has been about a new company who opened a factory. the real focus on sustainable development should be on small companies that may someday end up being big companies. and drive more collaboration. in all the cities we visited it

is important to get the university working with small companies and nonprofits in that areas. so that there is a collaborative effort to create a strong startup community. and tell your story. make sure people know what is happening there. how unique -- the history of your city you can build on. that is becoming more common. we are seeing people that are champions of startups that are not traditional startup cheerleaders. but, a broader group. as you have successes, these iconic companies that develop with pin fall companies, great things happen and there is a spinoff effect. even seattle. when microsoft was still getting started -- it started in albuquerque -- seattle was struggling. because microsoft was successful, jeff bezos moved to seattle to start amazon. he figured he could pick off some engineers. seattle is booming.

that is going to be more the story across the country. emily: the other big story is the continuing scrutiny from washington of big tech. we saw the head of instagram testifying on the hill. do you think it is tech companies that need to step up? can they regulate themselves? or, is it congress that needs to create framework these companies can follow? >> five years ago when i wrote that book, i said this next wave 's policy becoming more important and having more of a bridge between innovators in silicon valley and policy makers and washington, d.c. we have seen that develop over the last five years and that will continue. part of this is educating people. the congressional hearing spoke with the senate in the house on instagram and crypto. art of that process is educating them what you have to respect

the policy process and engage otherwise you won't like some decisions made. taking the first step both as a company and industry to try to put self-regulation in places important but sometimes people wait too long. emily: steve case commit chair and ceo of revolution. we appreciate you stopping by. emily: pfizer and biontech saying a third dose of their vaccine gives effective protection against omicron. we hear from the ceo of pfizer next. this is bloomberg. ♪ global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is "balance of power," i am david westin. s "balance of power," i am david westin.

emily: pfizer and biontech say a third dose of their vaccine may be needed to neutralize omicron. research has indicated two doses of the vaccine may not be

sufficient to protect against the new strain, but a booster in addition to that could be. david westin spoke with pfizer's ceo earlier on bloomberg television. david: -- >> three doses of the vaccine would provide for omicron the same protection like the first two provided for -- strain. the original. remember, it was only 95% the first two doses. we also know the -- for omicron -- they are having very big drop off. [indiscernible] >> this does not mean we won't see efficacy because there are other elements of the new system we haven't measured. those could provide effectiveness against severe

disease -- more challenges to provide against infections. but the third one, we -- and this is why it is good news and we need to make sure everyone is getting the third dose. david: based on preliminary data now, does the third dose get you back up to the 90% to 95% effectiveness you had before? >> correct. it gets you back to the same neutralization -- we had when we saw 95%. it is not always absolute. david: give me some sense of how much the dramatic drop in effectiveness if you only get two shots. how far down does it take you. 70%? 50%? >> we do not know. we will see only with real-world data. but in terms of neutralization, high.

we went down to 25 times almost down and then -- [indiscernible] -- 25 times higher. david: u.n. pfizer have been clear in saying this is preliminary. give us an understanding in the range of possible error. how different are the final data likely to come up? >> based on the -- it is faster but less accurate. it is called -- virus. we do not do trials from the -- variant, we do it in the construct we created in the lab. this is very standard process. it is way more accurate. within one or two weeks. even if we --, what really would be the final verdict would be the real-world data. when we see what happens in the real world.

if they have the two doses are protected, three tortoises protected -- three doses protected. [indiscernible] with more numbers you can make mistakes. all of us will come together before the end of the year. david. i have to say we have now a very high level of confidence. in our labs, what we saw yesterday was not only how the virus response to the current vaccine, but the experimental vaccines we had developed in our labs, those are giving us very good direction that if we make one that is precise to cry and was very effective. emily: that does it for this edition of bloomberg: technology. tune in tomorrow, we are joined

by arley curto v. plus, security, compliance and identity at microsoft. and andrew mccollum, one of the cofounders of facebook. that is coming up tomorrow. imm of the chain. this is bloomberg.

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♪ >> good morning. we are counting down to asia past major market opens. shery: welcome to daybreak asia. asian markets set for a cautious open as investors weigh a third day of gains on wall street. >> investor concerns over omicron ease as pfizer say a third vaccines -- vaccine dose

neut