>> from the heart of where innovation, money and power collide. in silicon valley and beyond, this is limber technology with emily chang. -- bloomberg technology with emily chang. emily: i am emily chang in san francisco and this is bloomberg technology. no slowing down for meta. they plan to how the developing of their ar and vr illnesses.

we discussed. plus, how'd never getting the chip shortage is a supply chain pain and their outlook for 2022. and looking for opportunities, we will look as they try to diversify southbank's opportunity and latin america fund despite the ongoing pandemic. all of that in a moment but first, tech stocks getting hammered and fears about omicron are mounting. ed ludlow is here. ed: that route is really deepening. painting a picture of earlier and faster rate rises throughout 2022. the nasdaq 100 is very tech heavy index and followed by the most dense march. mega cap tech stocks seeing heavy losses. we also saw significant losses in u.s. listed chinese companies. down 2.6%. tencent cutting its stake in an online gambling and gaming

company that is concerned we shall see other chinese companies through that as well. of course, this is all about the outlook for raising 2022. come with me to the bloomberg terminal and look at this chart. we have seen yields on the u.s. ten-year creep higher, that blueline on the side of the screen. basically, the psychology is that higher rates reduce the present value of future earnings specifically for tech companies who have higher valuations and are fast growing. the question is if this is just a dip in technology shares. we saw tech shares sell but then they bounced back. will we see a repeat of that this time? the other big story is with the ev space. so much news coming out throughout the day. i actually picked out the electric etf which saw the biggest drop in a month including the number of names. but there was a specific drop.

this is between still act and amazon. they came out on wednesday and said they ordered ev bands from still in test. you can see what that meant for rivian. a drop of 11%. what is interesting is you remember me covering this story last year in october. rivian disclosed that amazon was free to fight trucks. gm, we will talk about this later in the show. shares are down 4.5% despite unveiling the electric silverado pickup. the omicron variant now accounts for 95% of new sequence cases in the united states. hospitals are facing their worst staffing shortages in a year. those seeing less severe death and illness on average.

but omicron is so public that doctors and nurses are getting sick themselves. you can look how long we are supposed to isolate. quick that agency was about a week or so ago. they switched it down to about five days for a lot of people. the shrinking, a lot of people should isolate if they get sick. and they came to clarify. a lot of them expected people to say things more illiterate to test out and clarify more of the specifics after isolation. the white house, a lot of the good top public health officials have said we can't shut everything down at this point.

they can get back to work sooner than they had previously. and that has really shaken up a lot of public health people. correct the u.k. just announced it is relaxing with the covid related travel restrictions. the respect other countries to follow suit as cases continue to spike. >> i don't. the u.k. has been very hands-off on this. they have been pushing back a little bit. it came as a bit of a surprise but again this is the revealing theory. the u.s. and the u.k. have been saying that even though we are seeing more cases, we are not going to lock things down. we are going to keep pushing people and trying to get our economies moving along and that has been this sort of trade-off

that a lot of western countries are taking at this point. we want to keep people working despite this up tick in cases. -- increase in cases. >> thank you for that update. meanwhile, facebook parent meta says it has no plans to -- they deny a report that clams that meta shelve the project after offering an android version instead. more on this. are they or aren't they? why does it matter? >> ethic that is a bit unfair but -- i think that that is a bit unfair but meta is grading a new operating system. it says it does not have any plans to halt that work and did not give any details about what

that network is looking like. mark zuckerberg does not want to have to do that anymore. that is by the company has made such a big push into the metaverse. it avoids the dependence on mobile device seekers. >> we have seen the evolution of this conversation about the metaverse explode since facebook announced his plan in october. there is also competition, other device makers getting into the

game. what does the competition look like in 2022? >> ethic it will be an interesting year comparing meta. apple is expected to be releasing its own high-end mixed reality. meta is working on a smartwatch. they're working on augmented power glasses. snapchat debuted smart classes and it is also working on augmented reality glasses. that is a few years ahead of facebook in this endeavor. what we are really seeing, microsoft is in the mix here. in terms of the other metaverse. what we are seeing is this is

the next tier of competition when it comes to hardware tech related offerings. >> this is our beasley a trend we will follow throughout the year. coming up, pelletier -- palantir . we will talk more about the $25 million deal announced and get a status update year after going public. this is bloomberg ♪

>> >> breaking news now, the cdc

advisors are now recommending a pfizer booster shot for kids aged 12-17. the thought is that the booster expands -- could help keep schools open. obviously a hot topic given what happened in chicago today. we will continue to follow this. again, the cdc advisory panel had been meeting today. they are now recommending a pfizer booster for kids 12-17 years old. meantime, a slew of tech companies are now making big announcements. one of them is palantir. announcing a big deal with the shipbuilder, hyundai. joining me more -- joining me for more is shawn. how will this work?

>> this partnership is very exciting, and represent our first major expansion into korea. we are working with hyundai heavy. that drives the digital transformation of their entire business. this is the largest ship builder in the world. they are producing a new ship every eight months and everything from how do i produce these ships better, faster, cheaper, how do i manage them? i think most excitingly, how do we introduce economy into ship transportation today? 80% of all accidents or human error. >> italy built in our track record --

it brought together 150 airlines and generates billions of dollars of value for the aviation ecosystem. we are super excited to bring that to the shipping industry. those -- the execution, the operation and although the perception -- participants in that ecosystem. >> how are they impacting your client given the number of industries that you touch including that you now build ships? >> we work across 40 different industries and we had a big role in helping companies with supply chains. from the very beginning of the pandemic, helping keep hospitals open and running. one of the interesting realities with omicron is that you are saying -- seeing it is not about part available to, it is about people availability. that is actually in a holistic sense of the supply chain problem.

we are helping people manage parts and people together. the reality is that managing your supply chain is the software problem. we are bringing that software to the frontline. >> you exley have a partnership with merck to try to address some of these issues. what are you learning from that? >> this is one of the largest suppliers in the semi conductor industry. we worked with industrial companies that work around this. they are really thinking about how we might get the most out of the chips that we are producing. and get them to the most effective places.

>> companies are designed to prevent -- to present virtually. you have this partnership with wedo. where are you inspecting to see the most innovation on the ev front? what are you looking ahead to? >> i think of that as mobility. everything from autonomous vehicles, connected vehicle data. you are seeing a big convergence there. one of the huge things is averaging the edge ai community -- capabilities. all of these connected devices are generating so much data. people are realizing that is too much data bring back from the vehicles themselves to the cloud. how do you think about this question mark this is one of the more exciting applications or these digital twins.

this allows the cities to look at and simulate this based on the connected vehicle data and about ev manufacturers or autonomous vehicles companies to see how they can get more safety under more environments. i think there is going to be a huge market opportunity in that space. they launch this part of that. >> there has been some debate about whether they should move forward in person at all given to spike in covid cases. this is given how relevant they are. what is your perspective on that. how much value do you think it has? >> we have seen great opportunities. people are being very safe. that changes the way people are engaging. i still see a lot of cutting

edge novation. this will build the future together. >> we are speaking about a year now since palantir went public. just looking at the stock, dropped by about 21% over the year, it underperformed the s&p. do you see that turning around in 2022? does your outlook ahead? >> you got this in 2021, but he about that. $400 million in cash flow is our guide. what we focus on is working our tail off to create value every single day. we are doing this for the long term. you think about a great company like apple, it took him 30 years to create the first $100 billion value. 12 additional years and three years on top of that to make the subsequent 2 trillion. we plan to do this for a long time.

we plan to keep doing that and we think that will be reflected in the long-term. good to have you back with us. thank you for stopping by. meantime, i want to stick with supply chain issues and the ship shortage. guy johnson caught up with vladimir, the president of north america. they asked about how that company is navigating new product launches with the supply chain crunch. >> what we are seeing is things like shipping by freight. this is two times higher on air freight cost. we are starting to do things like making sure the boxes are smaller, led away. making sure some of the large customers are shipping and multi pack boxes to reduce that footprint and that way. especially in the space it takes these devices in. that is something that we are looking at. it is true.

one of the things you do is in order to make sure your innovating, we spent over $2 billion to make sure that we are innovating products that customers want. none of the things we are hearing from customers is they want a more sustainable product for their corporations and enterprises and even further home use and small businesses. >> let's talk about home use. what are you seeing in terms of the trends? a lot of people watching this will be sitting at home and working from home as a result of omicron. they are still going to be using virtual meetings. they will still be using zoom and teams. how does this new product fit into that landscape and how does it evolve with that landscape? i did a lot of conversations about the corporate landscape. >> there are a couple of things we have done. number one is we worked with them as a partner to make sure

we are developing a product through their cpu that delivers the highest and most realistic audio qualities for team usage, zoom usage and to create an environment where you are high really there. we have seen the dynamic exchange over the last 18 months or two years. work remote is turning into hybrid work. it is an area of the market where the more you can actually create a better virtual experience for employees or consumers, that is some of the trends that are driving the industry. >> what is it like to get your hands on tips and stuff? how do you deal with these shortages? you mentioned making packaging later. what about chips? >> we have seen supply chain issues for well over a year.

being the number one pc manufacturer in the world, it gives us a lot of clout. we made massive investments whether it is chips, memories, drives, panels, those are all things we made early investments on. the other think we have done is we have leveraged all of our worldwide manufacturing locations. operating in over hundred 80 global markets and manufacturing in about 10 different countries has allowed us to actually spread out some of those areas where we can actually build products closer to the customers. >> coming up, sony making its way to the ev market. we will talk about how the electronics giant will be leaping ahead of apple. this is bloomberg.

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>> sony is launching its own car company that is known for devices like the play station counsel -- console. it is setting up its own mobility unit. sony's president says they are looking forward to bringing together creativity, technology to change the experience of moving from one place to another. and for more on china's tech crackdown, tencent is cutting its stake in singapore's c l imited. this sparking concerns that beijing will continue its crackdown on china's tech giants. and bitcoin slumped by as much as 5.6%, sending it to the lowest level since its early

december flashback. this as growing expectations of rising borrowing rates are weighing on some of the best performing assets of the last few years. coming up, we will talk to the leading investors for softbank opportunity and latin america fund. we will talk about what their top priority's are in the new year. this is bloomberg. ♪

>> welcome back to bloomberg technology. i am emily chang in san francisco. despite the still raging pandemic, hope remains that this will be the year it ends. with that, investors are still looking for those untapped market -- markets. joining me now is one of the founding members of softbank's opportunity fund which focuses on black, latin and native american founders.

she would say thank you so much for joining us. i want to start with you. your vote -- you are focusing on founders that are overlooked for far too long. what are the priorities this year? >> thank you for having us. we are so excited about the opportunities coming into this year. the opportunity fund has already invested $75 million in over 70 companies. we have looked over -- at over 2000 companies. this is not an easy path. it is hard to pick some of the best companies out there. we are looking for great copies like the rest of softbank. >> your focus is latin america and you have made investments

across a slew of sectors. where are the biggest areas of excitement for you as the pandemic drags on? >> i would say the latin america fund. softbank is known for this division fund. but there is a whole another group of softbank called softbank group international. latin america, the opportunity fund, miami are all part of a general idea that there are these pockets of activity where great founders exist and no capital exists or not enough capital exists. there is a definite connection between all of the initiatives. latin america, we came into it in 2019. there is hardly any growth capital there. the last year will be about 15 billion. and a flood of capital from foreign investors really have not been there before. the opportunities are much broader and latin america than

we presumed at first. coming in, we thought it would be the usual e-commerce, it has been incredibly broad and deep across these types of markets and industries, there are software companies in brazil giving the american ones the ones -- a run for their money. there is a resilient e-commerce enablement company. you are seeing a lot more high-quality global under been worship coming from these markets that are often much more difficult to do business in. so the founders that built there are really battle tested for the world. >> we see the ceo -- as much as softbank international about what the priorities were then. listen to what he had to say. >> we will continue to invest in companies that utilize data on artificial intelligence to disrupt traditional business models. we like companies that like

making the world a better place. >> i believe he did that interview from miami. i am curious, that was at a time and we did not think the pandemic was going to go on this long. i am curious how the strategy or philosophy has changed given that we are still in this. >> what marcello said was the same. these are the amazing companies that are connected with financial purposes. these are all the topics that are true a year ago. they are absolutely true today. what we continue to look for,

black, latin and native americans. we have not yet invested in this. the one thing that has changed is we spent the last year meeting with over 30 different people from the native unity to really understand how we will invest in that community and find entrepreneur's that are building great companies. we have to take a different approach. we are investing in native american communities. this is not something that we did in the past. there has never been any shortage of headlines. he really wanted to double down and investing on technology. there has been turnover in partnership. and there have been reports

about marcella potentially leaving. what do you say to founders about whether or not they will have the stability and the resources they need to be successful and whether the relationship they are developing with people at the fund will last. >> obviously it is not wise for me to comment on private negotiations happening between my bosses. i not going to do that. as far as latin america goes, we built a team dedicated to the region that is very unique. we have people living in brazil, mexico, miami, all focused on that in america. softbank continues to invest around the world and latin america's rep resenting a larger and larger component of that. not just for us but all capital allocators. we would see every brand name

and investor and tech come in. that will continue. the region is as exciting as ever on his unmarried. what we did in 2019 is jump start our own efforts there. >> talking about the opportunities there, how will you measure success? >> we measure success like many other venture funds. we are in this to invest and generate returns like every other fund out there. this is also the value we create in the communities. we have a value creation team that is dedicated to working directly with all the founders in our portfolio. just to really create a community.

ultimately, we want to change the face of wealth creation in our society. i can tell you now that more than half of our company has raised grounds, many of which you participated in. we are very happy to see that. >> we can't escape and fts, there is a crypto verse this year. we can't expect hunters like el salvador making countries like -- making bitcoin legal tender. >> this is not about the coin only at all.

mexico, brazil, argentina, colombia all have innovation around web three. we are fully committed to it. >> we will be watching where you place your bets. coming up, 2021 was all about the rise of and fts. the sector, will he continue to soar? coming up next, this is bloomberg.

>> a tough start to the effort tech stocks. continuing to plunge for a second day with concerns about faster rate hikes. to continues to be the second largest part of the world economy. even if you look at the last bubble, what you saw was some

demolition in value but what you didn't see was the growth stop. we will continue to see growth in each of these companies. >> where do you see the winners and learners -- losers? >> it is all over the place. tiktok, now the largest site on the internet, only followed by google. even though i have a long way to go in terms of turning that traffic into revenue. shall provide revenues of 46% year-over-year.

everywhere you look, you see a lot of growth. look at at was revenue growth. amazon up almost 22% year-over-year. almost two thirds of that -- amazon is a highly profitable marketplace business. >> what are your thoughts on and fts and whether or not that market will continue to soar? this year, there was a lot of volatility, a lot of big swings and down swings. quick between 21 was the breakout year. we went from around 100 million in sales to we estimate about 8 billion in sales. a lot of it has been in sports. we estimate that it will be

around 800 million. even nike but a company in the middle of december called artifact. that does virtual apparel and virtual sneakers. we are not sure that if from a value perspective that this is the bubble that is going to burst and continue to grow. but we do believe that and fts are here to stay and they will be important. especially as we move into the world of the metaverse and people are looking to take those and put them into their presence in the metaverse. >> there is an interesting trend in videogame makers cutting into and fts. but fans seem to hate it. i find it curious given that you think there would be some cross over there. what you make of that -- what do you make of that? people have been trading virtual goods. they have been training them on

marketplaces. gamers are used to trading it for the virtual goods. i think part of the reason,'s are not so excited about is because they don't view it purely as games. these are people who are buying an element and it is not part of the game. it is not part of an environment. course crypto in 2022, where does it go? >> crypto is the biggest winner. ethereum is up over 5%. it is important because it is not just cryptocurrency but also a blockchain platform that other people can build. applications like and fts. >> michael wolff, ceo of activate. always good to have you here. we will watch to see if those predictions bring true. coming up, it will take just

minutes for gm to sell out. but can the company compete as the ev pickup market gets even more crowded. maryborough reacts. next. ♪

>> a big day for gm. the comedy showcasing it's all new electric chevy silverado. the trucks sold out in just 12 minutes. >> we will bring them to market as quickly as we can. that will be available in spring of next year and then in the fall we will have the rst and we will work to get them to customers as quickly as we can. the reception has been great.

the first edition of the rst sold out in 12 minutes and reservations are still coming in. we are super cited about the response we are getting. this is a ground of ev truck that has so much capability. we are so excited to share it with the world. >> congratulations on all the people ordering already. there is the demand there. you are a year or so behind. how are you going to catch up? is it important for general motors to catch up when it comes to the pickup? >> we are shipping hummers as we speak. early next year, we will have not only the silverado but we will have the chevrolet blazer or suv as well as the equinox. i am so excited about all the electric vehicles that we have

coming. that is why i am so confident that by mid decade we will be the leader in ev's. we are going for total leadership here. >> with regards to the accessibility of some of these vehicles but a lot of your competitors, these are still relatively spencer vehicles. when do we get to a point when we see a broader adoption of ev's? that is exactly where we are targeting the equinox. it will be nicely equipped.

we will reveal that shortly. people are going to see just how much value they will get for that starting price of $30,000. i think that is when you will see that huge adoption. i am super excited to get those affordable ev's into the market place. >> we are proving the batteries to the point where they are -- improving the batteries to the point where they are a bit more economical. how far along are you in gm's development of that technology and of that battery manufacturing. where you can have some confidence that the price can come down meaningfully for consumers. >> we have that confidence. when you look at the previous generation battery technology to what we are launching first with number and then the leader and then the silverado, the equinox

and the blazer, that is coming on our new generation of technology that is already 40% less expensive than what we have here. course a gm ceo there. >> and the battle in the ev world heating up. tesla is still the biggest target. ed ludlow with us again to talk about this. the two automakers really working to take on tesla. the splashy announcements have been about ford. we asked about the two biggest on makers in the world. if you sell 10 million cars a year, those are 10 cars for everyone that tesla cells. these two copies put their money where their mouth is and now we need to learn what they are going to do to take on tesla.

>> what is volkswagen's strategy and what is toyota's strategy? >> volkswagen channeled the inner tesla. elon musk is going full sand on electric asian. a $100 billion commitment over five years. they want to electrify the whole fleet and do it quickly. why everyone is excited is this huge manufacturing footprint. we do have that legacy and the history of manufacturing. >> how much does elon musk care about all this? how much is he paying attention? he has this line that you and i have discussed time and time again. products are easy. reduction is really hard. they sold just a little more than 300,000 ev's. they had such a long way to go to catch on the manufactured ev's. you heard it in that package.

the best value for money, inference the cost of battery packs down and pass that onto the consumer. tesla is bullish. you can try to build and adventures, not let it slip to some of the legacy players or a volkswagen or toyota. they are still focused on hybrids and even hydrogen without going fully into a letter vehicles. >> when you look at the market ahead, which carmaker is the closest to challenging tesla in terms of market share and quality question mark -- quality? >> there is so much credit given to ft. and jim because of the pace of what they have done but they don't have the scale of volkswagen. they're waiting on volkswagen to go big and 2022 could be the year that happens. >> thank you for that update. that does it for this edition of bloomberg technology. join us tomorrow. we will have much more.

plus we will talk about the role of social media one year since the attack on capitol hill. i am emily chang in san francisco, this is bloomberg. ♪

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