>> from the heart of where innovation, money, and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang. >> this is "bloomberg technology ." coming up, new york state reporting a one-day record of more than 21,000 infections as omicron variant spreads in the u.s., we will bring you a virus

update. plus, elizabeth holmes faces up to 20 years in prison for conspiracy and fraud as closing argument are wrapping up. we are live in california for the latest. and this is for caroline, all about and ftes and they are everywhere. companies are getting in on the action. is it working for them? i'm going to talk to the woman behind the most expensive metaverse property purchase to get her take on it all. we look at it at any moment. let's look at where we were in the markets. a lot of volatility not only today, but this week. another week of losses here on a big federal reserve announcement two days ago. >> the market has been on a roller coaster ride but we are ending the week down and ending the day down. the s&p 500 down 1%. it has been a risk off mood with

us cryptocurrencies which were down 4%. something to keep in mind, tech outperformed today. for most of the week, it has been the laggard. today, the nasdaq was up for most of the session, ending about flat on the day. it has been moving in line with yields which ended flat on the day. that dynamic we saw early in the year where yields spooked tech, that is not the case anymore, they are moving in tandem. look at other subsectors. it is a different story under the hood, tech having a diverging trade. electric vehicles in semiconductors lower on the day. chinese adrs in the biotech index having pretty good days. in the tech bundle trade, it comes apart today. it ends at the ultimate question, how much of the omicron variant is going to have an impact on growth? i want to show you a curve, seven day moving averages of cases. we are slowly rising up and

hitting levels that we saw back here in march, not good news when it comes to the growth. tech starks -- tech stocks starting to see -- taylor: thank you so much. we want to pivot their next, the cbc -- cdc has recommended vaccines made by pfizer and moderna for use in adults over the j&j shot. johnson & johnson's vaccine has been linked to bear but serious blood clots. president biden warned that unvaccinated americans face a winter of severe illness and death. he asked the supreme court to allow a federal shot mandate for health workers to take effect nationwide. i want to have you give us some clearly because you hear record cases in new york and it makes you nervous, but it is debts and

hospitalizations that are around 1%, am i right? >> yeah, we are getting record cases in new york today, i think the highest number of cases in any one day of the pandemic. we don't know whether it is all omicron, but that is the supposition that a lot of it is omicron. cornell university shutting down, going online. clearly, this thing is very transmissible and spreading fast. what is not clear is the severity. certainly does not appear to be more severe than previous variants and there is some everything it may be less severe but we need to wait and find out to see how it plays out. many of these pay three cases are in vaccinated people and there is every reason to believe cases in general will be milder in vaccinated people, certainly if you had two doses of vaccine and a booster. but we don't know yet what

omicron does in unvaccinated people, whether it can reach those unvaccinated or vulnerable people and cause more severe cases. we have to wait and see and find out what the data shows. taylor: what are we hearing about testing and the ability in testing and at home tests to distinguish between what is omicron, what is delta, what variants we are dealing with? robert: i think the at home tests basically tests whether you have the virus were don't, but they do not get into variants. it could become an issue going forward with these treatments, especially as these antibody treatments don't work for omicron, you need a sequencing test factor distinguish -- test fast to distinguish whether it is omicron or.se you can know whether the treatments work. that could be an issue going forward with testing, gaining

the capacity to get quick results to say is this omicron or some other variant, especially if there are treatment that work for one and not the other. taylor: appreciate your perspective. lawyers in the trial of elizabeth holmes wrapping up closing arguments in san jose. soon, it will be up to a jury to decide the fate of the theranos founder. for the latest, let's go to ed ludlow. give us the latest about wrapping up closing arguments and rebuttals we are hearing. ed: government prosecutors will soon have the final word in this trial that has been on for three months. the u.s. assistant attorney basically told the jury a list of what he called ample evidence, things extending from the idea that their nose concealed that they use other

laboratories when blood tests that they purported to have come from their own machine. you also pointed out that is live -- that elizabeth holmes was not this naive entrepreneur, she may have got on the road to theranos at the age of 18 but by the time she was raising funds, she was 30 and that prosecution put it, she was old enough to know the difference between wrong and right. they also talked about tests which did not look good for theranos, that they discarded and did not disclose to investors. all of this will be on the jury's mind. taylor: talk to us about those tests. we talked about this in the last hour. did we get any indication in this trial about the actual technology, if the blood tests actually work? ed: there is a blurred line

between the functionality of what the machine can do and what elizabeth holmes was pitching to investors. she is charged with wire fraud, defrauding investors. what the defense tried to do is say that these investors should have known they were in it for the long-term. when she was telling them about theranos, they did not need to know about the technology. they put a chart up showing theranos' share price. the defense tried to make an argument that the technology did not matter, they did not need to do about that, they were sold on the vision of what theranos was trying to do. it may not have been able to do it at the time, but that is what elizabeth holmes was selling to them, this future vision of a product that would help society. taylor: it is important to note the legal system and i know you will correct me if i'm wrong, is not a preponderance of evidence, it is beyond a reasonable doubt. what is the jerry thinking about beyond a reasonable doubt?

when can we expect final conclusion? ed: deliberations could happen quickly. they could happen slowly in the final week before the christmas holiday. it is hard to read the psychology of the jury. one of the other clutches of the defense was that elizabeth holmes acted in good faith. she genuinely believed in what theranos was trying to do. she could not have defrauded investors if she believed that the technology was eventually capable of doing what she said it would. the other side is the long-term romantic partner and former executive of the company and the accusation allegedly that he subjected her to psychological and physical abuse and that is something to consider. how much of the actions where her own but there was not a clear case made by the defense? taylor: really appreciate your

time. we want to check back in with you in the next hour as well. in other news, a wave of school shootings circulating on tiktok and other social media from did some u.s. schools to close today and others to beef up their police presence. the threats do not need specific schools in local at -- and local and federal authorities say many threats lack credibility. this year, there have been nine school shootings and 235 so-called non-active shooter incidents according to the center for homeland defense and security. coming up, the rally in your technology stocks after the fed meeting proved to be short-lived. apple, the worse performer. what happened to that $3 trillion market cap? this is bloomberg. ♪

taylor: look at shares of apple, they closed zip 17% lower on the day. -- closed 0.7% lower on the day. one week ago, apple was closing in on the $3 trillion market cap. the company not quite there. i know in the media, we get excited about round numbers but down to about $2.8 trillion and you wonder, what change? was it the fed pivot on wednesday that made us rethink how we are looking at technology stocks? >> what we are seeing through the rest of the year is vines are going to be either would

lower. we expect to see a melt up and we expect that to continue into the first half of next year. taylor: how much of that is fundamentally based? is it iphones, software revenue? eric: the longer-term 2022 business looks good but right now, it seems like a supply chain issue is going to hold things back. from a fundamental standpoint, it is going to be good in the medium to long-term but right now, what we are seeing in the supply chain is apple cannot get enough so they cannot get enough product out the door and even though it does not appear that way if you look at different stores, they are having trouble getting the products they want.

we think it is going to be between 10,000,015 minutes -- 10 million and 50 million units short. taylor: what was with suppliers telling them to hold back? eric: there are a lot of components so when apple sets forth back, i does not mean -- there are some components that were short but not all components. you are hearing reports from a life component suppliers that they want to hold back because they don't need as many iphone cameras or batteries in the types of things that are not in shortage, but things like power management and processors, those are in shortage. that is what we are seeing. you can hear both things, they both can be true, but apple could still come up short in units.

this is all what you can measure. taylor: you are doing your supply chain checks and poking around the suppliers. apple has done a good job of if anyone can control their supply chain, it is apple. what you make of the reports for making more items in house to maybe cut out some suppliers? eric: tim cook is a supply chain ninja. he is the master. it is why he is ceo. if anybody has a good grip on this, apple has a good grip on it. they are such a big company, they could push the suppliers around. the are bringing some things in house and they are bringing things where they think they can add extra value. they have a lot of cash, a lot of technology that they own.

moving to design their own processors and now designing their own processors for the mac , they think they have something they can bring to the table. they are looking for something a little different that has more power management built in and a little better for image and video and media processing. so that type of thing, we see the continuing to do. but there are a lot of parts. apple clearly does not want to build a lot of factories themselves. we are going to continue to have assemblers -- they are going to continue to have assemblers. taylor: really appreciate your

time and perspective. stay with us. coming up, we are going to get an update on gm's planned launch of robo taxis in california. those details next. as we had to break, look at rivian, shares fell to the lowest levels since they started trading last month. the electric truck maker's earnings report revealed a slower than expected increase in production. one analyst said output warning, highlights the risk that rivian has a lot on its plate. this is bloomberg. ♪

taylor: general motors saying its autonomous vehicle unit is on track to launch its robo-taxi service despite a change of leadership your the ceo --

leadership. the ceo suddenly left as they can was applying for permission for robo-taxi rides. the gm president spoke earlier with our colleague. >> do you believe cruise is in good hands? what i want the investor committee to know is that cruise and gm are aligned in the autonomous vehicle strategy we outlined on our last investor day which he would have seen and we are leaders in the tv technology and have a lot of growth opportunities ahead and we intend to lead so we are committed. we have a great team. great people all across the enterprise working hard to integrate and accelerate cruise.

we are all in. >> i know you don't want to address the question of why the ceo left but a different question, that is the timing of when air -- when we are first going to see commercial application of a cruise vehicle. is it going to be delayed? >> absolutely not. i want to make sure everyone understands that we are accelerating our effort. we are on track plus with the deployment on a commercial basis. we are right on the doorstep of the ok from a regulators -- from our regulators to be able to have driverless vehicles for our customers and we are doing some of those now with our employees in finalizing the touches on that.

there is no delay or hesitation. it is full on. we are all in. taylor: that was the gm president. this week, bloomberg held its annual technology summit where ian king spoke with bernie james . he began by asking that $1 million question, when will chip supply meet demand? >> where you are in the supply chain, it will be over the next 18 months, but there are things that change for good. i think we have seen a combination of shortages and price increases and i think that in many ways, some of the costs are going to continue to be at this level even though they are at shortage level. i think prices have gone up. it has gotten harder.

there is more demand. it is extensive and takes a long time to lay incapacity. -- lay in capacity. as capacity is coming online in different segments of this complicated supply chain. it is multiple manufacturers across multiple geographic areas. as that capacity comes on, we will c easing of supply but i'm not totally convinced the prices are necessarily going to go all the way back to where they were. >> some other other leaders of the industry are seeing, this was sped up by the pandemic but this was an underlying theme and economy, the need for more semiconductors. this is not the usual boom and bus cycle. are there people more probate about things echo it is great

but we are going to go back to ddp plus growth in the long term? what is your take? have things fundamentally changed? are we going to see an expansion like we have never seen before? renee: we have seen this before. we have seen it before but we saw it concentrated in one sector. we saw it in pc's. pc's went from 50,000 units to 350,000 units in a short window. it was five to seven years. we cited cell in cell phones, we saw it in mobile. these growths, when new software usage comes into play. i believe the crowd is new, i don't think this many companies -- notwithstanding the big software companies who run their clouds like microsoft or amazon or google or whoever, there's a

lot of people to take advantage of the cloud, they are just beginning to figure out how to use the cloud, whether it is in the commercial cloud or on premise using cloud capabilities. i think there is a lot of growth ahead of us. will it eventually settle down? i'm sure it well, it always does. but it is multiyear. the thing different this time that is interesting and encouraging and we need to consider is, at the same time, there is a computer platform and because of where i come from, we think about, there is no need for computing, but think about this. autos are now computer platforms. -- compute platforms. we do not know how to define the edge well but with 5g, things that were not able to be high-performance compute now can be. with products that are

low-power, you can put amazing competes at the edge. -- compute at the edge. there are other platforms ticking off in conjunction with the core cloud buildout. this is a bit unprecedented. i do think that they are several years ahead of us.

taylor: this is "bloomberg technology." let's get back to those markets. you are also taking a look at tech stocks. alibaba and oracle as well. a down day for oracle. kriti: there is a lot of news, we are talking about the micro-stories and there are two that caught my eye. i'm going to start off with the first one which helps some of those chinese adrs underperform. alibaba targeting 100 billion dollars worth of transactions through its e-commerce on lozada

which operates in southeast asia , in direct competition with another e-commerce giant based in singapore, see limited. you saw that a new approach to e-commerce show up in the adrs. alibaba up 1.5%. 80 yards down 0.8%. -- adrs down 0.8%. oracle looking to buy cerner for $30 billion, a way for oracle to get into the health care business which is what cerner does, a medical record company. it would be their biggest deal by a huge margin compared to the path transactions. $30 billion, pushing cerner much higher and oracle lower. we have to end with cryptocurrencies. i want to point out, a theory and's gains in particular, it

has outpaced other cryptocurrencies to date. it is because of the technology that is used in tandem with nft's as fts boom, ethereum gets a bed. taylor: it is about the underlying technology. it going to my 50 weekly drop. -- bitcoin, fifth weekly drop. we are pivoting about how we think about this and shifting maybe to the other underlying technology things. let's tech with this world of -- let's stick with this world of crypto. janine is behind the biggest metaverse property sale. what is fascinating is we came in with bitcoin as the underlying technology and then this year, it was about meme stocks and that it felt like an fts are this new frontier -- an fts are this new frontier. are we getting it right when it comes to nft's?

>> i think you are fine. a lot a people don't understand them still. we are starting to see a proliferation of companies, corporations trying to tackle the nft market and a lot of them are getting it wrong, they are not spending the time to understand what is driving the nft market, they are looking to make a quick buck. the ceos do something in evan fts -- in nft's. people are not thinking about the long-term implications. it could erode the fabric of the community sitting behind nft projects. taylor: what is that long-term perspective for the company's getting it right? what are they doing? janine: crypto is anticorporate so big corporations are antithetical to an fts -- to nft's.

the ones getting it right start with the community, i does not start with a big company that is designed to further that company's brand, but listening to a community that may not have an online home and offering a way for people in that community to join together. we have seen the products that get it right have grown financially -- grown exponentially. one is the most -- one is one of the most high valued brands in the world because they listened to what people wanted and build a brand and it stands for something that is important to the people that own them and we have seen other project is something similar where they found a niche that did not have ao me online and built an nft project around that so the projects that think about committee first are doing well. the others are struggling. taylor: when we think about some of the new frontiers, it is now

about the metaverse as well. it was interesting talking about i believe republic realm purchased the largest land -- we see that" -- of $4.3 million in the sandbox. what drives that value? janine: we bought a big portfolio of land parcels in the sandbox and our objective is to codevelop it with atari which is a brand that is much loved and widely recognized. we are excited to do something with them. we bought a portfolio that is so big, it is almost like buying an entire city in the sandbox and the sandbox is a metaverse that is cool, it looks like minecraft , the world's most popular videogame, but built on the blockchain. it launched an alpha. it is exciting, it is designed for adults, i think it's going to be huge. taylor: with the growing influence that this has come out regulation may not be far behind.

what is there, if any, appropriate regulation around these products? janine: like with all crypto, anybody in this industry is trying to figure out where the gray area stops and where the boundaries are. there is no fear guidance yet. there is a lot of cases for why this is something that ought to be treated like a collectible, like a baseball card. the players in this space are operating under that assumption and will continue to do so. taylor: what about how you are thinking of educating the people , maybe gen z or younger, to get involved? janine: i believe the next step for the metaverse is going to be building the workforce that is going to build the metaverse, and bill people keep sharing about the metaverse, few people honest and what it is. one of the key tenants of what we are doing is educating people.

we have an academy where you can take classes from real-world professors and learn how to understand the metaverse and be part of the metaverse economy and do 3d development. we are also gritting nft products designed to teach people how to create a wallet, how to buy and nft. we are launching a product called gft, and fts design for gifting. they are designed for people, this is their first nft or you want to teach your friends and family about gft's, is the perfect holiday gift for procrastinators because he can buy it today or the day of and it unwraps on christmas day. it is a cool project but it is meant to be simple enough that anybody can understand it and that is a core principle of nft's, bringing more people into crypto and that is why ethereum is performing well, the nft is creating a wave of main stream

adoption. taylor: we are going to be talking about the supply chain issues as well. that instant gratification and instant present, as he said, works well. really appreciate it. coming up, the holidays -- rb eight days from christmas? a --re we -- are we eight days from christmas? my next guest helps us sort everything out. this is bloomberg. ♪

taylor: amazon's customers and

the u.k. will now be able to pay in monthly a salzman's -- monthly installments. purchases of $133 or more on amazon will be eligible for the new payment method. buyers will be able to spread out the cost from between three months to four years. that folder into the supply chain crunch, it has been driving inflation higher and it is here to stay. $65 billion with of clothing, toys, and consumer electronics are at stake. ports are scrambling to clear the bog jam in the port of l.a. a bunch of the as executive director calls it a game of whack-a-mole. let's bring in the transfix ceo. what do you see as the technology that you are using to make this less of a whack-a-mole game? >> thank you for having us on,

we love talking about supply chain and how we can make it better. there's a number of issues going on, very tactically around the holiday season and covid and all the things happening there but the reality is these have been issues for a long time. it is lack of transparency, lack of visibility. there is no good, automated way for carriers and shippers to work together and match freight at a network level and understand where everything is, people don't have visibility, they don't understand what is happening. these are the problems that you need sophisticated data tools for, advanced analytics. those are the things we are bringing to make better matches, drive inefficiency out of the system, and reduce a lot of the waste that is causing these problems. taylor: fedex came out with an earnings report yesterday and i

was speaking with an analyst and they said all these logistics companies are investing in r&d and ai and better models, but those models mr. 2020 and did not forecast -- models missed 2020 and not forecast it properly. how are you confident the ai can forecast everything? christian: we believe two things. first, we believe there is a person in the middle. we have these machine learning tools come out matching technology. but we believe it gives human beings the ability to make better business decisions. we grew revenue 40% in 2020 because we were able to both use models to better match but also understand we have deep the justice expertise as well so we believe in matching technology with deep human expertise to do both of that, so we had one of

our better growth years in 2020 because we were able to understand and marry the technology with human beings which allowed us to grow and we have seen that continuing. that has been exciting. taylor: is any of this getting better anytime soon? christian: it is going to take time. you have the new covid out there. there are going to be bumps in the road for sure. normally what would happen in a cycle like this is there would be a lot of demand so new trucks would come on the road and that would ease concerns. the issue is that trucks have the same issues the car companies have, they are constrained as well. so we don't see this loosening up anytime soon. what we do think is the solutions we are providing can help shippers and carriers get more efficient and drive some of the waste and problems out.

if you think about the fact that 30% of miles on average are driven empty each year, if you think about limiting half of that waste, that is a massive amount of efficiency that can hopefully bring prices down and bring things more into balance through better efficiency and technology. taylor: what does that mean for prices? the pricing power that you have for these companies desperate for a solution. are you seeing prices that you can raise? christian: we are about matching supply and demand. this is a multi-hundred billion dollar market. no one player is driving prices in this market. it is driven by a lot of macro economic factors. what we see is a huge opportunity to showcase what we can do and it is not just a matching, it is the visibility and analytics. some large companies can understand their networks better

through us then they could on their own. we see this as a long-term shift where companies fully understand that it is not just about just-in-time inventory or getting the cheapest price, it is, how can i manage this and get visibility? how do i have better relationships across the ecosystem that help me understand where i need to be? which warehouses are working? we see it as a long-term opportunity of better supply chain visibility and analytics to drive out that waste and help companies be more efficient in the way they move things around the country. taylor: really appreciate it, christian lee. come join us again soon, hopefully one of these days supply chain issues will be fixed. coming up, we are going to take it back out to san jose, the latest on the elizabeth holmes trial as the jury prepares to decide her fate. that is next. this is bloomberg. ♪

taylor: chinese asides have been accused of using huawei technology in a telecom hack, it took like -- it took place in australia into the 12. it began with a software update from huawei with malicious code. u.s. authorities have warned that huawei product pose a security risk for any country that uses them. let's return to one of the big top stories, lawyers and the trial of elizabeth holmes wrapping up closing arguments. ed ludlow back with the latest. ed: the final word has been said in this case. the deliberations will start. we will go to somebody who knows this. andrey spektor, a partner and

former federal prosecutor who has advised board of directors. as we enter deliberations, what is in the mind of these jurors? andrey: what will be in the mind is that element of the crime. that government will have to prove beyond reasonable doubt that she intentionally deceived investors to obtain their money and that she did so through statements or omissions that were capable of influencing investors. that is going to be the focus. ed: it has been a long trial, yet we pack to the conclusion into a single day on friday. we got through the closing arguments, the rebuttal. does the jury remember all the facts and evidence, the legal principles, or did they go off the theater in the last three

months? andrey: the jury charges will be fresh in their minds because the judge will have just informed them. it is a few days before a major holiday and there are a couple schools of thought. something that is a great thing for the prosecutors, that the jury may just want to get it over, convict, and returned to their families. other lawyers think drivers tend to be more compassionate around this time, they are going to be going back to their families. elizabeth holmes is a young parent and they may feel bad for her. ed: who does that scenario favor? we are five days away from christmas eve, the jury may want this to be done quickly. is that in elizabeth holmes' favor or the prosecutors' favor? andrey: it is unclear. these generalizations are overblown. the reality is that most jurors take their oaths seriously, they sacrificed so much of their lives already, they want to get this right.

there was a big trial in new york a few years ago, there were three defendants and it was around this time before the holidays and the jury got the case right before the holidays, they convicted two of the defendants and returned after the holidays and acquitted the third. you cannot generalize. it all comes down to the evidence and i think the jury will try to get this one right. ed: there was a large body of evidence that suggested or demonstrated that the theranos analyzer did not work to the full effect of what other executives said it could do. there is a lot of evidence that suggests elizabeth holmes exaggerated at least that can abilities of the machine but also misled about what the company was doing. the defense kind of red light on this idea that elizabeth holmes is acting in good faith. she believed in what is kind that she believed in what this was doing.

which are committed is more powerful? andrey: this is a strong case. it is not overwhelming on every element and there are some spots on the defense has done a good job of exploiting those. first, the evidence showing intent is circumstantial in this case. there is no smoking gun, there is no recording of her saying, i'm going to lie to these investors and take their money. that does not exist. that case also lacks emotional appeal. the picture to get from this evidence is that a visit with holmes was not the traditional fraudster who wanted to steal investors' money, she seemed to believe in the company and in herself. she never cashed out even though she could. that may not matter, you cannot lie to investors and patients even if you have the best intentions, but it could matter

to jurors. it could raise the bar for reasonable doubt. i think the evidence is strong, but there is definitely room for reasonable doubt, especially on intent. ed: what might be hard for the audience to understand is elizabeth holmes faces 11 counts of fraud and the jury can find her not guilty of some and guilty of others. how does that work? how does the jury go through each charge and make that decision? what does it matter whether she is guilty of all 11 or just some of them? andrey: the verdict lists all 11 counts. they will work through the evidence and deliberate on each count. they could disagree on some. there could be a mistrial on some, there could be acquittal on others. practically speaking, there is not a big difference between a conviction in one count and convention on all 11. a conviction of a four wire

fraud charge would expose elizabeth holmes to a potential maximum sentence of 20 years. it is safe to say she is not getting all 20 years. all of her conduct including when she was acquitted could be considered by the judge. the sentencing is much lower than reasonable doubt. if the jury found the government did not appear beyond reasonable doubt, the judge could disagree. all of that matters for the government, a conviction on one count to get the sentencing. ed: incredible insight from somebody that knows this domain well. thank you very much. taylor: thank you as always to our bloomberg's ed ludlow, doing what he does best, reporting for us.

that does it for this edition of "bloomberg technology." david westin is next with wall street week. you are watching bloomberg. ♪