>> from the heart of where innovation, money, and power collide. in silicon valley and beyond, this is "bloomberg technology." with emily chang.

emily: i'm emily chang in san francisco. this is "bloomberg technology." a $69 billion deal. microsoft agreeing to buy activision blizzard in an all cash transaction for the third biggest gaming company. you details on what happened in my exclusive interview. a tone of optimism when it comes to government funding for chipmakers. all of that and more will we get a look at markets and the roller coaster start to the year. ed ludlow is here with the latest in tech. >> this chart tells the story on was a. this is the nasdaq. the very tech heavy index. you can see between gains and losses. it is all about learning season. all those big names in tech. the markets are still concerned about the outlook of rates.

if we bring up the next board and look at where we are during the day, risk off mode, not just the nasdaq but they are continue to slide. crypto is moving with that risk off sentiment. it is the time we start talking about the idea of a correction. a technical correction. the white line is 10%. basically, we're getting near a 10% drop. we saw the in march of last year when yields were revising. this is nowhere near as big of a drop. we are headed in that general direction. i love this chart. sometimes a set appear and i think, it was a down day or an update. if there are looking at the bigger picture, we are on a downtrend.

there is one sock i want to talk about, not in the united states, in japan in tokyo. sony dropping 12.8% in tokyo. the biggest drop. it follows the news with microsoft buying activision for almost $70 billion. emily: joining me now is dena. -- dina. talk to us about the reversal and what was the genesis of the steel. >> -- of this deal. >> we covered this together. microsoft was facing against investors who were a little bit

uncertain about how much money was being spent and whether they had any useful tied to the risk of -- rest of microsoft business. in the introductory memo to employees, overtime, number of changes in the market. one of the most significant is being tied to the company with cloud gaming, each focus. selling software to gaming companies to make it on their own cloud. it has become much more central for them. as a result, he has made a number of acquisitions and did most of the talks himself. it has become a huge investment for them. emily: that said, activision is dealing with serious scandals and lawsuits. why take on another scandal?

i know you talk to the head of gaming about the journey that they are on and their hopes to resolve some of these concerns. why is microsoft taking on another scandal? dina: in terms of cleaning up the issue at activision, part of their due diligence is reviewing. if the deal closes, it will not close for another year. microsoft is comparable they are on the right track or they would have done the deal. they feel comfortable, even though -- they can fix things. as we just discussed, for a few other reasons i have not mentioned. mobile gaming is really important. microsoft has no position in mobile gaming right now. activision's leader. the metaverse, this is a huge bet on the metaverse. various companies, facebook,

apple and others are talking about this virtual world that they want to develop. half of the strategy is located in their gaming initiative. they spoke yesterday on a call about multiple metaverse's. how this still gets them many more communities and creators that can create and be active in a different gaming metaverse. that is very strategic for them as well. i also want to mention, this deal should let them bypass the apple store attack. microsoft has been vocal and unhappy in the feel like they have their own presence in mobile gaming and they can get customers to go to them instead of going to apple, google and paying their tax. emily: so much more to cover. we look for to your reporting on it.

our seattle bureau chief there. i want to bring in a managing partner. one of the active investors beyond dust behind the push. they are now investigating some of their older issues with sexual harassment, allegations dating back to a long email threat of the company in 2019. you were one of the investors that push them to do this. do think microsoft can clean up their own house and activision's on top of that? natasha: it is a tall order but i feel better now than at that meeting when we asked microsoft to do an independent investigation of the company. and to report out to shop

holders. shareholders and implement best practice. that got a 70% bow at the meeting. it was quite remarkable. they really called out the vote is a change in the investor relationship. i think that it underscores how important issues, sexual harassment, other esg issues, how material they are. institutional investors are catching on and pressing companies to act. even larry fink weight in this week saying he would allow blackrock investors to weigh in at company's annual meetings on the individual level. i think that given the announcement that microsoft made last week, that they have hired an independent law firm that they are going to do an independent investigation, look at best practices in the industry and they are going to

implement that at microsoft, it certainly put some in a better position with the activision purchase. emily: are you planning to ask microsoft to added activision to this review or will it be a separate review after the deal closes? natasha: we have already been in touch with microsoft asking them to do that. art believe that that would be the intention. it will not close for another year. i will say -- it was a red flag with activision. we were caught by surprise. that this will be the kind of company that microsoft would want to bring into the fold. not because of gaining an metaverse but because of a culture of sexual harassment in male-dominated culture where there has been a history of

allegations of predicting -- protecting predators. that is concerning. i have some concerns with him himself. emily: you are asking for microsoft to add activision to the current review or to start a new review once the deal closes? natasha: microsoft can speak for themselves. i do not believe they can do the review, that they will not have control into the deal closes. we have requested that this be part of their own cleaning house. i would expect in good faith that that is going to be what happens. i think, when you look, one of the big red flags i saw, i don't know if you follow wynn resorts, they gave shareholders $90 million for failing to hold senior executives accountable who perpetuated sexual harassment. i would probably put him in the bucket.

i think there will be a lot of cleaning up to do. emily: what are some things you think microsoft should do now, until the deal closes to get that process started at activision? natasha: i think this is really about culture. making a commitment to improve the culture at microsoft and activision. we have already heard from -- committing to do that. from the investor perspective, this is about my responsibility to attract and attain top talent. this is a big risk for microsoft to pull activision into the fold. they have their own housecleaning to do. it will be a challenge with activision. hopefully the commitment that microsoft has made in response to our proposal sets them on a better footing to bring

activision in-house and to communicate what they are going to do anymore authentic and transparent way. emily: natosha lam, -- natasha lamb, thank you. coming up, my conversation with the ceo of crypt out.com -- of crypto.com. i also asked him about the advertisement with matt damon. >> we love him and we would love to do more stuff with him. i do not think he saw it -- fundamentally not supporting of the industry. they don't have the full view of the potential they have to improve in her eyes.

-- in their eyes. ♪

emily: potentially millions in ethereum was lost after a hack. i spoke to the ceo who shared new details about what happened for the first time. kris: we are happy to get cybersecurity. a ton of professionals around the world who are building a very robust infrastructure. there are multiple players. in this incident, some of these leaders were breached.

we very quickly stopped it. we fixed it. during this time, we were fully reimbursed. [indiscernible] we are constantly strengthening our infrastructure. emily: analyst estimate 50 million -- $15 million were lost, can you give us a number? kris: it will be posted on our blog and inexorable days. i will leave the final numbers until then. given the scale of the business [indiscernible] emily: it is what you're doing about this.

what are you doing, where the plans you're putting in place to make sure this does not happen again? kris: there are additional players of security that we are implementing. as well as some new products we will be launching. i do not want to reveal too much of the stage. the industry will know in a couple days how we will address this. historically, we have let the industry in terms of security standards. we heavily invest in infrastructure. we will continue to strengthen its and keep this place more say for everybody. emily: you are joining us from singapore, have you had any conversation with the authority? have a reached out and what have you told them? curious what they are asking for. kris: at this stage we do not see any outreach from the

regulators. we expect that they are putting together all the relevant reports. it is part of the preparation and process of closing this incident. emily: what is it like operating in singapore? we have seen regulars take different approaches. talk to us about the environment there. kris: singapore is very supportive of watching cryptocurrency in general. there is a pretty robust frame of how we should be looking at it. we are in the process of screening to licenses for that. overall, a very supportive environment. i think that is a great

environment. emily: we are seeing some sort of crackdown happening in singapore. a teams are being shuttered. there is a crackdown on marketing, how is that impacting your plans? kris: the general point of view of the regulator is that the markets are still for the general public to participate in. they will want to rein in some of this activity. over time, as the industry reaches new stages of maturity, it will gradually lacks. this not affect our plans. we are committed to continuous investment in singapore. we have done a launch there. it is an important market for us. emily: for more on my exclusive

interview, you can find at bloomberg.com. coming up, all things crypt out with microstrategy chair micro -- michael saylor and how he came to being one of the largest crypto holders in the world. one of the largest semi conductor makers came up short. asml is testing their machines to speed up deliveries. they have not seen demand with this before. peter: demand is easily 40%-50% above capacity. we have been there from time to time in the past. what i'm seeing now is unprecedented. emily: asml ramped up hiring last year. coming up, let's not waste this crisis.

intel seo urges government aid to chipmakers. our conversation from him. this is bloomberg. ♪

emily: intel ceo patrick gelsinger is optimistic there will be new legislation to support chip manufacturing. he spoke to our bloomberg editor in chief at the conference. take deliverance -- take a listen. patrick: may be in the second half, there will be a chip act. this has created a law of energy. we believe that u.s. companies but also asia companies should be participants in building out and accelerating this capacity on american soil. personally, i have been very involved in lobbying for getting

the bill done. we are hopeful that before the resolution ends in february, all the legislators will line up to get across the line. there is a similar timeline in europe as well. we are optimistic and think it is a great start. if we can go from 37 to 12. there is an objective for the u.s. gets back to -- and europe gets back to 20%. i think that is an incredibly positive way to leave this decade, when we are optimistic to achieve. >> that is interesting. you have made a noise about this. most other people tend to be like facebook and google, they don't have the same amount sales. china is your biggest customer. do you worry that they may take

retribution on you or do they have no real choice as far as chips? patrick: we believe that every country would want local suppliers wherever possible. our objective is to build the best chips and deliver them into our customers on a global basis. 25% of my revenue is in china. we have deep customer relationships. of course we want more supply chains there. we respect that. our customers want to build the best platforms. if our products enable them to be ahead of what they would do with alternative, we will be able to determine that. we have seen continued growth in china. u.s., china situation does present challenges for any company to find a pathway

through. john: you think we are heading to a world where there are two internet's, a western one and one around china? is that the reality of technology going forward? patrick: if you think about chinese policies, like dual circulation, the great firewall, there is a level of disengagement from the market and the rest of the world. at the same time, we think of technology as neutral. emily: the intel ceo there. full conversation online. coming up, paying for college with crypto. my next guest has some radical or practical advice for parents who want to plan ahead. i will speak with the ceo of unest, next.

plus, breads it -- president biden marks a full year in office. coming up. this is bloomberg. ♪

emily: welcome back to bloomberg technology. i am emily chang in san francisco. ed: risk assets generally selling off. crypto moving with stocks they see in decline. we love all of these cryptocurrencies together at the moment. we focus a lot on bitcoin but i

want to talk about the theory of. -- ethereum. ether has actually underperformed bitcoin. there is a lot of chat about these participants. $3000 per token. ether is the native currency. you can see back on january 10 we did reach $3000 per token. there seems to be some sensitivity with ethereum. rising yields, the risk assets selloff that we sought to start this year. some saying that 3000 could be the bottom line we bounce back from. there is a lot of dispute about this and how it will behave. you have to remember that the enormous game that ethereum saw

in 2021, 400% gain that traverses around 67 for bitcoin. you see the chart on the bottom line, you want to keep track of it. we are always hung up on bitcoin, there are others out there. the second-largest largest cryptocurrency by market value. emily: i want to stay on crypto. the next guest is calling on my parents -- more parents to buy in. why give the gift of crypto? thank you so much for joining us. let's talk about what you're trying to achieve here. >> thank you for having me. the mission is to do with financial solutions for parents. the platform helps parents tilde better future for parents. also, given gifts for friends

and family. >> why should parents in particular be paying attention to this? is it -- isn't crypto risky assets? >> we found out that the demand to invest in digital assets like crypto -- we actually sent out this survey to our user base and the overwhelming response was that parents want to see digital stocks and crypto on the u.s. platforms. i also believe that crypto is actually going to be mainstream and more parents have probably heard about crypto even compared to traditional asset classes. this will become the first solution to enable parents to set up all their kids with all asset classes including crypto. >> what do you recommend as a first step for parents trying to plan for their kids financial

future? how much should crypto be a part of it? >> we encourage parents to not have crypto as the only asset class in their portfolio. the beauty of this platform is parents who come and join us, they are not looking to make short-term gains. they are not looking to trade in and out of stocks or crypto. they're looking to build generational wealth and secure their kids financial future. >> talk to us about use cases for the app right now. who is using it? is it that first house, car, education they are trying to save for? >> yes, currently parents, both genders have a genders but on the platform say for everything that can benefit the child, it

can be the first car, the first house, education is one of the primary goals. in addition to opening a financial account in five units, they can also easily get gifts from parents -- grandparents, friends, family members. correct how do these units compared to other kick saving apps? >> compared to other solutions currently on the market, they are focusing on saving and investing versus spending. the most quickly it is when the child is just born. this will be the first platform out there that will add individual stocks, nft is to

build financial wealth for families. >> all right, interesting advice. we will keep our eye on you guys. the official name for the new lord of the rings tv show has been revealed. rings of power. it was revealed by jeff bezos tweeting out the trailer. this week, amazon prime video's long-awaited series has been for years in the making. it is amazon's most ambitious effort since it started investing in original program. we will speak with plenty about the exclusive -- this is bloomberg. ♪

>> the biggest credit card issuer in the united states is moving into groceries. jp morgan will move into instacart. no word yet on what rewards will be offered, activity on instacart boomed through the pandemic possible widespread lockdowns. a new investment fund backed by microsoft raised $200 million for early-stage climate companies. this is the latest in a wave of increasing climate tech investment in a field that requires huge amounts of upfront

capital but with little guarantees of success. my next guest knows about these challenges. thank you so much for joining us. we saw a wave of climate tech investing years ago in silicon valley. it did not necessarily pay off. we saw a lot of failure. why would this be different? >> we are producing not only technology products we can farm but also in food. we are trying to figure out how to provide food security. >> tell us more about what plenty is trying to achieve and what gaps it fills. >> we look at produce and fruits as markets that are highly impacted by seasonality, whether as we saw in 2019. we are only one bed far away

from having major disruptions to food -- first supply. we see them providing a technology solution that can take the climate out of the equation when approved -- comes from to providing an answer to retailers. whether it is improvement in letting, climate or control. all of the things that we have been previously doing over this last decade to get to the point where we are now where we are trying to make sure that we are ready to restart scaling and providing. >> you were ceo just today. congratulations. what you bring to the business and what will you change? >> i have been in the business since it started. i have been both an operator and

investing. -- investor. how do we scale? this is building capacity at scale, firms at scale. the largest indoor vertical farm. also, my commercial experience. this helps the company to the next stage of growth. the former ceo was the founder, really passionate about funding -- farming. why did the board feel the need to appoint someone new question mark >> this is a different skill set. he has taken a step up on the board. he will also be continuing his work, focusing on our engagement , the work that we are doing transforming the environment.

as we think about the scale of the company, we have announced our first commission from compton and los angeles and we have further announcements coming this year as we start to go on scaling out technology to many more locations. also, across more crops. we started the figurines. we brought strawberries and tomatoes to the space. it is going to be a very exciting time. >> you are building the world's highest output in compton, california. how is that going? >> really well. a lot of the work that we have done shows our firm in san francisco. that is our pilot. that is in a fantastic location. l.a. is one of the great cities in america. it puts us in touch with a lot of consumers as we put our

product out there on shelves. we could not be more excited. >> the softbank vision fund has been one of the biggest backers. >> they continue to be a great supporter of the company. this is capital-intensive. it is technology. more assets will require more capital. that is certainly part of the game plan for us. >> all right. we will keep watching. thank you. coming up, it will be one year tomorrow. one year since joe biden became the 46 president of the united states. we will break down the first year of his term and lay out is ahead.

this is bloomberg. ♪

>> inflation has been a big challenge for the biden administration and i asked the ceo and chair what he things the best solution is. this from our latest installment of bloomberg studio 1.0. >> inflation is on the front page of every newspaper in the world today. the best defense against inflation is a bitcoin standard. i don't think we can do anything

better to position our company then to convert our balance sheet to bitcoin. we basically felt the balance sheet on something that is not a currency derivative. two years ago we were sitting on a bunch of cash and that cash was losing about 10% of its purchasing power per year. when the fed took a more accommodative monetary policy, that cash started losing 25% of its purchasing power. my anxiety was maximized around april of 2020. i realized that cash is trash. everything is about to get much more expensive and we needed a strategy. we adopted a bitcoin strategy. in my opinion, it saved the company from a not very pleasant

fate. i am totally pleased with where we are today. >> what is pleased behind this 2022 crash? >> there are a lot of dynamics here. if you look at the entire rep to ecosystem, you have a set of regulatory uncertainty. especially regulatory uncertainty around stable coin and crypto tokens and whether or not they are securities. that creates a little bit of anxiety. you have a lot of crypto exchanges that can trade with up to 20 x leverage and those crypto exchanges have many tokens that are cross collateralized. between them and the defined exchanges, you can get much higher than 20 x leverage. the crypto markets are almost designed to encourage volatility. that creates kind of a love-hate relationship between the crypto

ecosystem and the bitcoin how others. they are holding for a decade and sometimes for a hundred years and sometimes four thousand years. and yet you have that fast money hedge funds have a huge amount of leverage and massive volatility but you have two totally different investment mentalities and when they come together, the result is the world's least risky asset to hold over the next century to call -- called bitcoin and the most volatile fast money market called crypto and they are both joined at the hip for better or worse in the year 2022. >> michael sailor there. you can catch the full bloomberg stereo 1.0. that is right here on bloomberg television. january 20 mark's one year since

joe biden became the 46 president of the united states. there have been record gains for the s&p 500 and for surging inflation. a topic you mentioned in his address just moments ago. >> given the strength of our economy and the pace of recent price increases, it is appropriate to recalibrate the support that is now necessary. >> this on the same day's approval rating hit a new all-time low. i want to bring in jodi schneider. the political news director. he got in because of inflation. what were the takeaways from president biden's press conference? >> this was an epic press conference. he has not given one in months and months.

this was more than 1.5 hours. he was trying to make a point with the economy. he basically said we are working on it. the fed is in charge of trying to bring down inflation. they will soon be raising rates and the path they are taking is the way to work out of this. he says it is supply chain and a lot of it he laid at the feet of the pandemic and supply chain issues. also, we continue to buy goods from china during the pandemic, people bought and bought and bought all of those houses of things for the houses, any of them for china. they are working on it but he did not give a whole lot of evidence that the white house will take a different -- take a different path. he's empathized with people trying to deal with the rise in

prices. >> another big issue, china and the tariffs. lingering tensions between these huge economies. >> he did answer several china questions but he did not state there would be a different in policy. he said he does not know if they will lift those tariffs but he says china is not yet reading its commitments that would allow them to release those tariffs. he says the trade advisor is basically going ahead with talks but he did not really indicate that the tariffs would be coming off anytime soon. the new china policy has not come to bear yet. and they did not give any indication when that might happen. >> it is hard to believe it has been a year and it went by in a

flash. what are the biggest challenges that lie ahead? >> as he said, covid, covid, covid. getting the virus under control. he touted the vaccination rates and getting that vaccine quickly across the country. but until the cloud is lifted, he said that there will be these challenges ahead. including in the economy, the supply chain, health and hospitals. he did say there would not be a lockdown. that the u.s. would not go that way again. he reiterated that. he indicated that this is the challenge and as long as this pandemic is still with us, that will be the biggest challenge facing the administration and the next year. >> thank you so much.

i want to get to another issue that president biden and administration has to deal with. the faa issued a new approval allowing safety to percent of commercial plans to perform safe landings at airports where 5g service was deployed. this after a decision by at&t and verizon to restrict service at airports as of wednesday afternoon. that does it for this edition of bloomberg technology. check out the latest episode of bloomberg studio 1.0 with michael sailor. right here on bloomberg television. the largest holder of bitcoin in the world. what does he think about the crypto winter? is it getting a little cold? we ask him that and more. i am emily chang in san francisco. this is bloomberg. ♪

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