>> from the heart of our innovation money and power collide in silicon valley and beyond this is bloomberg technology with emily chang. >> i'm caroline hyde in new york in for emily chang. apple soaring on results. this is the nasdaq 100. it managed to jump 3% to end the

week, still set for the worse months since 2008. plus, robinhood in the hot seat. we will talk about the future of the retail trader and mark. -- more. and the big battle over in fts. how the case could set a new president. we will get to that in a moment. breaking tech news regarding hpe. mike lynch, u.k. tech tycoon, u.k. government approving his extradition to the u.s. to face a criminal fraud charges. dances -- that is after hours ago we heard the london judge ruling he was dishonest in the $11 billion sale of his company to hewlett-packard enterprises. we will get more that in a moment. back to the markets. we ended friday -- friday on positive footing. ed ludlow, walk us through an

extraordinary week. >> an extraordinary week, a volatile week. this friday's the nasdaq 100 is up more than 3%. that is the biggest jump since march of 2021. not as impressive as the s&p 500 that had a really strong day, the best since 2020. look at mega caps. the faang up 3%. apple was a massive part of that. the only stock in that group to not make it was netflix down 6/10 of a percent. semiconductors performed poorly within technology this year. the biggest jump since november. it is a really positive way to end the week caroline. i am not trying to upset you. i am not trying to marry -- bring the move down. you mentioned in the intro let's think big picture. the nasdaq 100 is on track for its worst months since 2008, the

financial crisis. i was a little younger than but that chart says it all. what we are dealing with at the start of 2022 is the outlook for rates and high multiple stretch valuation tech stocks particularly in the software sector. with apple's big print for the first fiscal quarter -- was apple's big rent for the first fiscal quarter enough to turn the tide? this is the last five days. the superlatives are amazing. this is the biggest jump for apple i sometimes, the biggest post earnings jump since july of 2020 when they posted for june of that here. clearly investors are happy about something. will they be happy next week? >> clearly there are people short this market of course but it is phenomenal for apple, the biggest one-day move since july 31, 2020. a great wrap up of an extraordinary week.

we will get apple in a moment. first, very volatile tech stocks staging a comeback. a man who might be floating about the shift to value is bill's meet. in general, january has been a story of movement from growth to value. >> it sure has. the worst thing you can have is the violent dead cap balances that went on from march of 2000 all the way through 2003. so, i do not know what you should wish for their. i think that if i were bullish on tech i would want them to form a sideways for six months and build some base because these abrupt rallies are symptomatic of a bear market.

>> a lot of people are saying that today's action at the end of the week, a swift reversal, is in some ways as you look ahead to the fact that we are rebalancing for the end of january after an extra ordinary selloff month, that perhaps, people are just trying to reallocate their portfolios ahead of monday. where to hide? you sat on the west coast in seattle but you are really looking not at the tech players, you are looking at if time is not right for the energy trade, for example. >> it is bizarre. people were more excited about oil at $65 per barrel in 2018 and they are about oil at $88 per barrel when virtually everything involved has driven scarcity. you know, we used the example of cigarette commercials being banned in 1970. over the next years the number

of adult smokers in the u.s. got chopped in half but philip morris was the best-performing stock on the new york stock exchange in those 40 years because the price of a pack of cigarettes went from $.20 to five dollars. that is basically what we are doing. the massive money flowing into esg investing has overcapitalize to innovative clean energy needles in a haystack and massively undercapitalized the future success of the oil business. >> i think it is an extraordinary time to be looking at this market and understanding whether the u.s. is the place to be putting your money. the u.s. dollar is on an absolute tear as we see the federal reserve get more hawkish as we anticipate rate hikes. what is the story of the dollar and whether you should be looking outside of the u.s.? >> well, we just started an international fund ourselves.

stocks are cheap outside the u.s.. just like in 1999, most of the glam tech is not in the u.s.. we think that making cars and producing oil and owning land and building houses and things that benefit from inflationary attitudes are where to go. not casing the net -- chasing the next dream of somebody that hopes to create the next at luxor amazon. -- netflix or amazon. >> you talk about inflation hedges. at one point, though, does apple, microsoft from amazon, these tech heavyweights become again a place of safety, a haven. they were the haven trade. their margins are such that the next bounds -- that the balance

sheets are so clean you thought they would still be the safety trade. >> that was the question asked in 1980 about oil stocks when they were popular. that is the question in 1990 about the japanese stocks that made up most of the top him. -- top 10. that was asked arnie 2000 about the top 10 holdings -- in 2010 about the top 10 holdings that were mostly tech and in 2010 about the chinese stocks that everyone were asking about. the problem with asking that question is by virtue of the fact that you are asking that question you are inviting for investment results the following 10 years by trying to make it be so. except that you will never see tech more popular than the last 12 months. >> wow. bill smead we will get a few

writing in from that for sure the cio of smead capital. back to the apple story. shares are phenomenal. we have not seen that sort of a move since july of 2020. joining me now is mark gurman. he follows apple the most closely of all people we knew -- no. what do you --know. what do you make on the share reaction and the calls from 10 -- tim cook the executives? >> the share reaction was well-deserved. numbers were stunning. everyone expected apple's guidance would come in higher than the 11 port for beauty and -- 11.4 billion but nobody thought they would smash that by 13 billion, 14 billion, which they did. extremely strong performance for the iphone 13 despite it being a modest upgrade. clearly people want their hands on 5g.

the apple watch and airpods did fairly well despite the fact of were pretty incremental upgrade from a year ago. >> we had a great conversation previous to this on triple take about supply chain woes. they are getting worse. this -- the port of l.a. is looking more ugly than ever. how has apple managed to navigate that so well? >> seriously impressive. it is fascinating you see tesla and other companies saying this will go into 2023 and apple saying it is easing this quarter. my take is apple has extreme pricing power and draw the most volume for supply chain partners in taiwan, japan, china, elsewhere in asia, vietnam. what they are able to do is get these suppliers to put them front and a center, first in line when these components are built.

these suppliers generate the bulk of the revenue from apple so they will choose apple when supplies are ready versus samsung, microsoft, amazon, meta or another partner. they also have a strong operational structure. they have people on the ground in china already through the pandemic even when we were not able to travel in order to start resolving these issues. so they have been working on this longer than other companies. they have had people dealing with these issues for 2.5, three years. so they have a leg up in pricing power and people. >> there is the odd tiny cloud on the horizon for apple. in particular, when it looks at antitrust, the app store, epic games. there seems to be another step being made there when it comes to support from various attorneys general in support of ethics -- epic. >> yes. apple will make as much money as it can with its current app store rules for as long as it

can. they made $60 billion across fiscal 2021 gaining a ton from the app store. they will keep generating that money for as long as they are allowed to. when they need to make that shift across the app store they will. they probably will take a bit of a revenue hit to their but they will make as much as they can until then and invested. they are betting on as of the user base expands, they said they have 1.8 billion active users now, that is up 300 million devices in just two years, so the more device that they have the more people they have buying apps and subscribing to services so i think they will be ok in the long run. >> mark gurman, thank you. coming up, it has been a year since the gamestop furor. remember that? we will be reflecting on the meme stock phenomenon that put robinhood in the hot seat and where the trading platform is headed. that is next.

this is bloomberg.

>> one year ago retail investors went all in on a few stocks including gamestop, amc, followed by various threads like wall street bets. this put robinhood in the spotlight and upended many headphone plans who are betting against such stocks. what have we learned one year later? let's begin. the partner and co-chief investment officer at regent atlantic and a man who we offer member where we were amid the meme stock renzi. it was -- frenzy.

it was an extraordinary story. his reese tail -- is retail a bigger player now than it was then? >> know it is much smaller. i think that has everything to do with gamestop and how it played out for the smaller investor. it was not until the news had already broken until gamestop was up significantly that the retail investor opened a brokerage account ended their first options trade -- did their first options trade. if they were lucky to be one of the first few that was a lottery ticket that paid off. if they were unlucky it has been a slow grind drown -- down in the stock price of gamestop over the past few years. what this will do long-termers discourage that investor who first experience was this a lottery environment to become a longtime investor in the stock market. that is ultimately best for everybody. it means fewer investors in the

market and they will not use digital wealth creation themselves perhaps until they have had a reeducation. >> i think there is like 17 million people using robinhood. there are a lot of assets they had. is there an element that people are now putting money to work in funds, into etf's, is a retail investor not picking individually anymore? >> robinhood is an interesting part of the etf and individual stock story. for many, many years people have been putting assets to work and to invest funds. tax efficient, easy. you get in instant diversified portfolio. then robinhood is offering re-commissions. -- free commissions.

before robinhood did this commissions were $10 at some brokerages and five dollars at another. not that it makes a big difference to a $10,000 trade but it makes a huge psychological difference to make something free. there is a certain magic to free. i think what robinhood is done is by forcing other brokers to get to the zero dollar commission level they are encouraging investors to trade more in digital stocks. all of a sudden you have to think about it harder but because it is free that inhibition against doing it has gone away. i think more investors are investing in digital stocks. it has a lot to do with the market dynamics we have seen over the last two years with some of the individual names popular with retail investors first experiencing a huge spike in price and then a rapid decline especially over the last three months. >> where retail has forced a change is the behavior of certain hedge funds to go short.

do you think that will have long-term impact? >> i think it will. i think it has in a couple of really unique ways. one is it will permanently change the price of options. people that were caught short in the gamestop and other stocks, some of the reasons they were caught short is they overextended themselves and took too much risk. one of the reasons they got caught short is they did not apply enough protection to the trade. they did not feel they needed to. i think that will permanently skew the price of that call option especially on smaller, less liquid, volatile stocks. i think the other way this changes hedge fund behavior is it will make them under eager to run a fully balanced long short. they might maintain a long biased even if they do not necessarily feel bullish about the stock market overall.

it is just dangers to because short in one of these stocks. >> really interesting ramifications. perhaps a little humility and hubris across the board. andy kapyrin, we wish you well. coming up, a fight over the first amendment. what is could mean for the emerging nf team -- nft market. this is bloomberg.

>> let's follow up on a headlight i mentioned earlier. the u.k. government approved the extradition of mike lynch to the u.s. to face criminal fraud charges. a london judge determined he was dishonest in the 11 billion dollar sale of his company. lynch is unlikely to be getting

on a plane anytime soon. he can appeal the court decision to allow his extradition. it is the latest in more than a decade of twists and turns following the 2011 sale of autonomy to unit packard. -- hewlett-packard enterprises. now, to another big battle we are watching. it is a fight that could potentially end up front running a u.s. supreme court decision. we could see in upending of the ways in which we think about nft's in particular the birkin bag version. the french designer is suing the maker of the non-fungible tokens over trademark rights. we are joined by samantha hammer. take us back a step. this court case is to do with the fact that these nonfungible tokens got sold of digital

birkins. >> yes. hermes is claiming that rothchild infringed -- nesser ross -- nathan rothschild infringed on the bargains with nft's. rothchild says his virgin protects him -- his version protects him and compared the situation to andy world's paintings of campbell's soup cans. this might give the supreme court the chance to clarify trademark rights and the first amendment. >> your view on how courts usually balance these trademark rights versus freedom of expression? >> courts have said these cases should only go in favor of the brand if the artist is explicitly misleading consumers on the source of the work. appeals courts are inconsistent

citing how the apply this -- they apply this. it tends to favor artists. but hermes might have a better shot because the consumer might be confused about whether hermes is associated with these meta bargains. -- birkin's. >> i am interesting in the financial guidance coming out of these. how do you think it will impact going forward? what are people going to be looking for to help dictate future decisions around this? haven't companies in particular potentially front run this so they -- how can companies in particular potentially front run this so they don't end up in court? >> companies can start filing trademark proactive categories that might cover in ftes. -- nft's.

there is no specific category now that covers in ftes. or, -- nft's. or collaborate with artists from the start like louis vuitton has. otherwise people are watching the space to see if the supreme court or another court does clarify that this might give brands a better outcome for these cases. >> is this the first major legal action we have seen? >> yes. there have been other suits involving nft's and artist rights but hermes is the first large company, really high-profile plaintiff to take on the case, another reason it might be enticing for a court like the supreme court to eventually take on. >> bloomberg laws samantha hendler -- handler, thank you. we have much coming up on the crypto space. we are talking about the future of business, potentially. the ceo of a cryptocurrency

custody firm on way -- why he believes every business will become a crypto business and how he can protect it.

as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable nationwide network. with no line activation fees or term contracts... saving you up to $500 a year. and it's only available to comcast business internet customers. so boost your bottom line by switching today. >> this is bloomberg technology. comcast business. powering possibilities.™

i'm caroline hyde. tictoc -- tech stocks have had a wild week. ed ludlow, talk to us. >> volatility was the buzz word. i am showing the bloomberg galaxy crypto index. the only traits monday through friday was largely a heavy weighting of bitcoin, ether, a cerium and others as well. friday bitcoin push higher.

we saw the equity market late rally towards $38,000. overall, bitcoin is higher. ethereum is lower and the nasdaq 100 is basically flat along with equity. in a week where we had a fed meeting we get key earnings that have driven sentiment in the equity market. i ask you again, caroline, what is bitcoin? come with me to my bit -- bloomberg terminal and let's ask the question. we have been looking at this chart, the correlation between the nasdaq 100 and bitcoin. the correlation remains high. it drops down it comes high. risk on, risk off. what are we thinking about here? bitcoin did drive higher through the week especially when jay powell made those comments earlier in the week that he could even reassess his own inflation outlook for the year and maybe add a few tenths of a percent onto that.

i am not sure where we stand on a day where we are risk off in the equity market and bitcoin will behave its own way a little. >> digital gold or a risk assets? the argument continues. let's stick with crypto. define lending firm qubit just saw another $80 million worth of its digital assets latest in the series of hacks of crypt trading marketplaces that left crypto fun -- frustrated. this can be a hindrance to the overgrown -- overall growth of the ecosystem. let's talk about how you can prevent that with crypto custody firm firebox joining us, michael --michael shaulov. talk to us about the growth. you have been adding more companies to help with custody, with the protection of crypto

assets, right? >> that is right, caroline. we basically provide a custody and protector -- infrastructure for financial intermediaries that are either using this service for themselves or they are creating wide level solutions for consumers, for retail crying -- clients. as you mentioned, there is more and more interest in crypto. 2021 was an amazing year for the industry. our client base went from 100 clients, 100 institutions using us at the beginning of this year to eve or -- over 800 by 2021 because of those clients want to make sure they have access to the most secure and well protected infrastructure. >> maybe that is why your own market capitalization goes up is something like 8 billion.

we are looking at some of the companies you support, galaxy digital itself. we were just talking about that crypto index. i am curious whether you my -- move outside of financial players. at the moment that is the low hanging fruit, financial institutions not yet offering crypto that would become future clients or is it the world your oyster? >> actually i must admit that the in of team -- nft phenomenon caught us by surprise. because we are invested in infrastructure with defi they had a similar infrastructure so we were well-positioned for nft is. s. the last couple months we started on boarding customers outside the financial industry. many companies that provide

gaming. so in the gaming industry we see a lot of momentum correlated to the metaverse. i think there is an interesting future to both gaming and the metaverse. in ftes -- nft's play a big role. other businesses such as marketplaces, they are sitting in the middle of those transactions and they could greatly benefit from this technology. we are seeing via spansion -- the expansion of the services we offer. i think over the next five to 10 years we will see most of the businesses leverage this technology for value. they can create content. they can organize and it is very interesting. >> nft is combining with you to. -- youtube. alphabet. how much are some of the

investors you are currently bringing on, g being one of them , we are looking at spark capital, how many of these companies sort of our strategic investors? >> first, i think those are some of these spaces that for a fairly long time they were not in crypto. they were not investing in the industry. i think in the last year or so they certain -- sort of started to pay attention and invest in companies like ourselves. clearly with some of those names there are strategic discussions on the broader corporate strategy. i think many of the big web to -- two companies have a lot of content on their platform, gaming, google is one of them,

microsoft, amazon, and many others, right? they are thinking about their strategy. what they will do with digital payment and what they will do with nft's. you know, having those people, those folks on our balance sheet and aligning with them strategically definitely helps with those conversations. also to be honest we like to be strategic partners. to a lot of those people. because, given the fact that we see what is going on in the industry today and we are working with many of the innovators, many of the stars developing the new thingsn we can help them to understand how exactly it works and what ideas are really meaningful for them. >> what about legislation? what about the ways in which curly not only the united states government but worldwide institutions are looking at the development of crypto and understanding how to regulate it? >> i think there is a lot of

regulatory push in the last year or so. i think that overall the narrative in the cryptocurrency industry actually changed to welcome the regulation. as long it is basically aligned with the technology. what we believe it i think others are starting to believe is that there is a better way to do consumer protection, anti-money laundering and in the important things regulation brings inside of the crypto ecosystem using one of the things we have done recently, we created a defi marketplace for company enforcing the permission that regulatory screening on the edges of that market. it allows an institution to participate in defi which before that was impossible because the institution could not figure out if you are going to undermine any regulations or things like

that. so overall, i think there is a pretty interesting development on that front that will be positive to the industry. >> fire blocks ceo michael shaulov, thank you. meanwhile, it keeps getting better but we are not where we need to be when it comes to diversity on boards. my next guest is working to fix that starting with how companies even search for candidates. that is next. this is bloomberg.

>> a story we want to up date you on. the softbank seo -- ceo is out. he has been with the company for

the next -- the last nine years. the ceos son said he made many contributions to softbank and we thank him for his dedication and wish him continued success. let's talk about what i record it has been for women in 2021. when it comes to board seats they gained more than 100 in s&p 500 boardrooms. but more work can be done when it comes to the process of how companies look for board members. abby alderman is with us with expertise when it comes to advising boards. you were previously doing m&a and the likes. i am interested in steps being taken. we are now seeing 31% of board

seats in the s&p 500 held by women, low europe -- below europe, below australia. it is improvement but is it sustainable? >> this whole issue of diversity, people say it is important but are we trying to meet regulatory requirements or take boxes. it is core to what makes for a successful board. so diversity is a really important part of the equation. but it is trying to create boards that can attributed to more of their constituents. as far as the question you posed on the 31% progress. there is some risk of having those numbers flatten a little bit. because, you have to think about the different pressures. how did we get to where they are? what are the blockers coming forward? >> we sit here as two white women. i have said -- spoken at least

-- length with ursula burns who has their -- her own focus on board diversity as a black woman saying white women have made inroads but people of color have not. in 2019 one point -- 1.5% of board seats in the russell 2000 were women of color. that is appalling. how are we seeing that change? >> there is progress with more than needs to come. statistics show us that the people of, more broadly, the underrepresented community are up to 17%. that is some progress from last year but i think the issue is really people focusing on why do i want to bring this person onto the board above and beyond that i diversity characteristics. it is so critical for parts to think about the challenges ahead of the organization.

their broader definition of constituents. we are a little more woke about the challenges they will have. the value of diverse board more bears -- board members is diverse is thinking. we have had different challenges and problems as the world has changed. what serves that organization best is to bring a tapestry of thinking. that is where diversity adds value. i think it comes to people of color other ways to consider underrepresentation, gender, and a combination off -- a combination, you are really getting more sophisticated thinking and less monolithic thinking. >> think of what the federal reserve itself has been through. we look at the monetary committee. jefferson is being added, a black man, we think about diverse what we see, also, the intellect he brings, the writing he has done when it comes to

poverty, when it comes to coming from different backgrounds, lisa cook being added to the fed, sarah bloom raskin with a wealth of experience when it comes to the environment. how do we build that thinking in earlier? the federal reserve has been under pressure because it needs to think from a more diverse and nature from the labor market. our people being set from a pay perspective? are we starting to see real, tangible needs but upon executive to ensure they think in a diverse manner? >> there are a few things going on. i think there was a tipping point when the business roundtable redefined who are the constituents? saying it is not just a shareholder primacy. obviously investors play an important role. when we think about the board's responsibility to employees, customers, the planet, that is making us realize we need that talent that brings back additional expertise, broader

perspective. i think that is one of the considerations that goes into it. but there are other things that will help move that along. then, fighting it on the other side are things like this really interesting nasdaq rule that came in -- out last year and now it is up to 17 state ag's that have filed suits against nasdaq. woe, that is a blocker. what is driving that. that worries me about how much progress we can continue to make. i think there is a lot of progress ahead of us. it would be nice if we continue to have more wind at our back. >> the media needs to be shining light on statistics such as that. charter communications has 70 per -- 7% of its board as women. not good enough needs to be the framing. people so often said, oh, it is a pipeline problem. but it is not a pipeline problem. you have to be more diverse when you think about the talent you

need. it is not always need to be a ceo, ac level executive. how are you seeing people think more broadly about the experience and expertise they need to ensure they have the right people around the table that do not apply to themselves? >> exactly right. i have always felt it was a demand problem not a supply problem. we always work with clients around intention. what problem are you trying to solve? what is the need for the challenges coming up? or, the opportunities you want to take advantage of. with this world getting more complex that is exactly the situation where you are thinking, you know what, somebody somebody who has really helped the -- help grow and international business that understands business disruption, that is a true product expert. one of the clients we are working with is a company that recently went public called meridian link. they specifically knew that what they needed in the case of one new board member was somebody

that was really a true product expert in the case of their next new board member, somebody who understood how to go to market in financial. with two -- those two problems we were able to put two double diverse women on the board in two months. >> thank you abby outer men ceo of board span. coming up we will hear from jim farley on what their partnership the flux. they are launching a brand-new fleet of electric and it digitally connected commercial vehicles. this is bloomberg.

>> for it is in the midst of the launching of its electric pickup

truck. my colleague emily chang sat down with the ford ceo jim farley to talk about the new venture starting with what ford's new focus on services will meet for -- mean for consumers. >> it will be customized software you can pick and choose off the menu that will make sure for -- make sense for customers. maybe prognostic's telematics, dynamic routing, coaching for the driver if it is a gas or diesel van. i think we will have a subscription like we are so used to and content but it will be customized based on the usefulness of the data. >> i think that makes sense because when you look at all of the opportunities whether it is opportunities in sales, service, marketing, commerce itself, in

building custom applications, analytics, dashboards, data, so anything you see here, it is not typically how we think about our trucks. but in this case, you know, our trucks are connected. either are not just trucks. these are connected trucks. the truck is becoming my friend. i have a relationship with my truck. in my new f3 50 i have a relationship with that truck. i have to make sure that truck is always ready to go because you do not know when that will be a major issue for you. this is what value added services out of the cloud will offer us. the ability to be more connected not to to our products but to each other and we will be able to do that in you know every dimension of the business. >> is there a number you can put on it? like by 2030 how much do you imagine the service is contributing to the overall business? >> i can imagine that half of our commercial revenue could be

either physical services of a vehicle or software. i do not think the answer will be like it will be software and not the physical service. they are totally integrated in our case. but i could see half. >> obviously mark ford and salesforce have had a relationship for a long time. are you seeing more of your customers rev up their relationship with salesforce like this? what does that mean to your business? does this help you reach new customers? >> all of our customers have a need to connect with their customers in new ways. when you look afford one of the most exciting things about this event reminds me a lot of what home depot did with their business. all of they realized they had a b to c business for the consumer but a b to b

pro-business. when they did that it was a radical acceleration of their revenue. they realized that is where they had tremendous new marketing opportunity. that is what is happening here with ford by introducing ford pro we have the opportunity to focus on this market segment that is probably the most profitable market segment in the world for this company and we are just at the beginning of an unbelievable story. when you add comprehensive marketing services, the ability to build a one-on-one relationship with professionals to understand them, to provide them the product and services they need it becomes a tremendous product line overtime. also you get tremendous feedback on what are the products they really want, what are other services they are doing? >> that does it for this edition of bloomberg technology. one extraordinary week for tech

investors at wall street at large. tune in next wall street week. the wild week in the market. barbara and bernard on why it might be smart to invest in carbon yesterday. romaine bostick is holding at this week.

>> this is bloomberg wall street week. i'm romaine bostick and for david westin. stephanie flanders on the effort to fight inflation. >> we might have five rate rises in the u.s. this year. that means they might not have to do so much later on. >> plus financial conditions tightening more quickly than anticipated. >> the market is going to