>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is bloomberg technology with emily chang. emily: i am emily chang in san francisco and this is bloomberg technology. peloton has a new ceo but shares are riding high on the news. more on the massive shakeup at the iconic bike maker.

plus, mna mania at microsoft. and leveling the playing field in technology. we will talk to a young company spun out of a google incubator that is taking on the software recruiting agency and trying to make silicom valley more it. u.s. stocks rising in a broad-based rally. kriti gupta is with us for more. >> the stocks taking a rebound. this comes as we start to see the 10 year yield nearing that 2% level. you may see a little bit of volatility when you hit that 2%. we are looking at the correlation of that relationship. that is where the yields are higher and tech is higher on the same day. good news for anyone worried about a 2021 repeat. this is just try over 4% gains after a little bit more policies

support from china boosting the likes of alibaba and the like. you mentioned in the intro, microsoft potentially in talks to buy mandy. this could help them boost their cloud offerings a little bit. around 35% of microsoft's revenue comes from the cloud so this would help with that portfolio. lift reporting earnings that are not actually meeting what investors want to hear with revenue bidding estimates but writers still falling short. you can see shares really taking a hit after hours. uber is in line with that but i think the biggest story despite all the tech many is going to be with pellets on and it will be the story of a round-trip, essentially going back to september of 2019.

you can see that peak. january of 2021. it comes right back down in 2021. right now dealing with management changes. and dealing with the potential of a major deal in the works. emily: thank you. i do want to stick with pellets on. those big changes -- stick with peleton. barry mccarthy will be the new ceo. 2800 employees out including some top hardware executives. is this the kind of shakeup you want to see? >> this is just a sign of how quickly and how soft demand has gotten over the last four or five months.

they are thinking about how they need to aggressively cut costs. the stock market reaction, when that would be coming back. quick to have apple saying that we are investing in streaming digital fitness as well.

>> part of the future of fitness will be at home. where do you think they went wrong? >> demand forecasting was a hard problem. this was a purchase you would probably wait for. what the pandemic did is they turned this into an impulse purchase. the consumer behavior is swinging all the way away. we will need some time to settle down and be aware of what the market will look like. >> let's be aware of what comes

next. they are fully saying that mccarthy and his wife are big fans of the brand. >> what i would say is he brings credibility with investors and wall street. he will probably say things conservatively over the next six months. they can forecast the demand they are seeing in front of them. beyond three to six months, he will probably do another shakeup that will right side the ship in

regards to it demand they are seeing there. that could probably be lower than what they are seeing today. emily: all right. we will see if a deal happens. amazon, disney, nike, thank you. we will move on to lyft. they recorded sales that beat estimates driven by higher prices because of a shortage of drivers. but they are in need of more riders. what are the big takeaways? >> it was a bittersweet moment for lyft results. what stuck out was this active writer figure which tracks how well lyft is able to monetize

their users. how frequently they are coming back, how many of them joined the platform in the past quarter. we saw this all-time high. there are two things to attribute it to. one of them was contributing to this idea that the prices have been so high for the past few months since the second quarter when they peaked. driver shortages are driving that increase. it really translated into this metric because writers are taking more airport rides but they also cost more. we also saw a seasonality impact. part of what we saw in terms of people, are they taking rides that are shorter or longer?

lyft could tell that we are able to monetize this but we are not getting your urges at the pace that investors are looking for. that number came in about 2 million short. that is really what put it into 2019 pre-pandemic levels. emily: you wonder if lyft and uber need a full recovery in riders if the riders that are still writing are willing to pay that. what do you think? >> it will be a balance. it will not be just about how much you can extract from a customer but also are you deterring them from coming back onto the platform? now subsidies have been pulled back. driver shortages are still hanging in uncertainty with omicron expected to a negative impact in the first quarter. i think there will be some

uncertainty as to how they balance both the driver supply, the writer demand. at what point do you say maybe we have to subsidize prices again? that will be part of the conversation. the profitability will continue to be a priority. >> what are your expectations of huber knowing that uber has rides but also eats? they have been doing better since the pandemic began. >> delivery actually overtook uber's mobility business. it was this cushion thatlyft was not able to have and rely on. we think that uber will see some kind of impact. they spoke to investors and actually acknowledged that omicron was having somewhat of a hit to rides.

we will start to see more of a focus on the profitability of the eats segment. they were pushing pretty good profitability numbers in q3. omicron may be bad for rides but it is good for delivery. >> we will be all over uber's results tomorrow. thank you. after taking on spotify, neil young has set his sights on big banks. he has called on baby boomers to dish the companies contributing to the mass fossil fuel destruction of earth. he encouraged fans to keep their money out of j.p. morgan chase, citigroup, bank of america and wells fargo. on the heels of a massive deal with activision and microsoft, could this be the next target and a massive buying spree? we will discuss.

this is bloomberg. ♪

>> more m&a from microsoft? the tech china is in deal talks. acquisition could bolster efforts to protect customers from hacks and security breaches. which micro self knows all too well about. dan is here with us. microsoft is on fire here. is another deal a good deal for microsoft? >> they are going to bulk up the enterprise. cybersecurity, it has been a

part of what microsoft wanted to beef up. it would make a lot of sense for them to make an acquisition. they are to almost be on the offense. >> they were talking about cybersecurity as the new pandemic. i want you to take a quick listen to that quote. >> while we have a pandemic, we have another real pandemic. that will be there with us. at the same time, i think what is really much more in the consciousness of people is the level of attacks have sure increased. but the need for our response to be top-notch is also increased. >> microsoft had its own vulnerability over the last year. how does this make sense from a

technological perspective? does this give them a better defense? >> it would give them significant defense. that was a black eye for microsoft. i think that was the straw that broke the camels back. they wanted control over their ecosystem. that would clearly make sense. they could also go down vulnerability. right now, microsoft, they are trying to build this iron fence around their cloud ecosystem. the only thing that could ultimately disrupt this is cybersecurity. >> this market value just over $4 billion. nothing compared to the size of the activision deal but does it concern you how much they are spending? >> i think microsoft was just

building the cloud. i think they're recognized now was the time to go on the offense. they also know why those other tech bowlers are in the midst of antitrust scrutiny. i think this is really a different type of microsoft will get over the coming years. emily: thank you. that is something we will continue to track. next, we will speak to the former top uber executive. ♪

>> the latest threat from frances haugen -- from meta came out. bloomberg caught up with the competition she. >> i am on instagram and if that does not work anymore, that would probably give me another 10 or 20 minutes a day. >> threats are never a good idea with eeo. meantime, the race to build a quantum computer is heating up.

systems are merging with blank check companies putting the combined company valued at $1.6 billion. emil michael is here to break down. $300 million is a big boost. >> yes. but i liked about this is this is in r&d company. this actually served clients like volkswagen. that is why i like it. >> it is still considered kind of an underdog in the quantum computing field. what is the special sauce when it comes to the technological approach that makes them a good bet in your view?

>> because they have been around a while, the ip portfolio is enormous. what they have built so far is a huge treasure trove in value, second, their approach is the only approach that works for optimization problems like employee scheduling. imagine how a complex business schedules employees with days off. they can solve real-world optimization problems given their approach. they will build the new approach. >> the approach they are using is called a kneeling. what makes that special and different from the approach of these other competitors? >> yes, this approach is one that we believe can solve a

certain set of problems that the other approaches cannot solve. it doesn't mean it can solve every problem but it can solve about $100 million worth of total addressable market problems. that is what makes it unique. they have a brand-new leadership team. alan is very technical and commercially deep. it has an approach that they have a unique lock on at the moment. >> lived earnings just out. they beat them on revenue but they missed them on riders. what do you think the future of ride-hailing is? does he recover again back to -- does it recover and get back to pre-pandemic levels? >> i think it does. i think you will see them exceed pre-pandemic levels for the first time since 2004.

prices went up. i think you will see prices moderate in 2022. writers come back and you will see this business grow again. no one who lives in a city can live without one of these services anymore. i think you will see a recovery and rise in both companies. emily: the ceo of uber predicted that rides would surpass those levels. -- pre-pandemic levels. what are you looking for, is it a strategy change? >> i think they need to have a management change. they need a leadership wake up call. the stock is where it was in 2015. that is seven years ago. businesses have been growing but wall street is not rewarding

them for it. there is a reason for it. they have done a bad -- a bunch of bad acquisitions that have not helped. >> a management change like a new ceo? how extreme are we talking? >> the first five years are up this summer and i think it will be a point for the board to look up and say the company went public at $45 a share, where is it today? this is the right team to take it forward and gain momentum. seven years is a long time to wait for a stock to get back to even. >> what about the promise of need and the ambition they have their? >> i think it is a great business. thank god we started it way back

when because you see what happens when you rely on one business when you look at lyft. there is a lot of room to run on each worldwide. there are lots of angles you can take that business. i like that business. i hope they begin the market share. >> we will be all over the results later this week. we appreciate you joining us. we will keep our eye on that. coming up, apple launching a new feature that will give merchants an alternative to square. we have all the details,, this is bloomberg. ♪

emily: welcome back. apple is planning to activate a new tap to pay feature on the iphone later this year. what does this mean for square? >> if someone wants to pay for something, you can use your phone instead of a pay reader.

any wall that can be used by tapping it on the back of an iphone. i would be interesting to see if it eventually comes to the ipad. when it comes to square, it -- square cells a connector that you can connect to your phone to take credit card payments. it is different, because it doesn't require any external hardware. apple will be leveraging third-party pay networks. it is possible that maybe one day square will take advantage of this technology.

emily: how much revenue could this drive for apple? >> apple services business is an early $20 billion per quarter business. -- nearly $20 billion per quarter business. every time they add a new service, they're going to continue to generate revenue. apple pay right now ballou generates a couple billion dollars per year for apple because they take a few cents on the dollar every time an apple pay transaction is done. take that off top for themselves. they will probably do this for this new service. this is another revenue driver long-term potentially. emily: when is going to launch? >> this is going to launch alongside of ios 15.4 in the

first half of march, i am told. what this means is that third-party payment companies are going to need to sign up to take advantage of it. who knows when stripe and other companies be able to release apps to take advantage of this feature. stripes says they will release in the spring and probably more later this year. emily: i have to ask your thoughts on the massive peloton shakeup. 2800 employees are out. the ceo is stepping down. do you think the next guy can get right? >> i can't speak to the merits of cutting 20% of the workforce. obviously, that is not positive by any means. the number of missteps that happened under foley's watch were decisions directly made by

foley over the last two years are in some respects countless. we have had the recalls that were mishandled, the child death, multiple ad related issues. the most significant problem was that they completely mistimed and messed up their supply chain not once but twice. once at the beginning of the pandemic and another time at the end of the pandemic. this is when peloton was supposed to grow and become this shiny new company with a $60 billion market cap. because of the supply chain issues we are where we are today and the ceo is responsible and he had to go. emily: we will be covering it all as peloton shifts into a new year. thank you. coming up, how to regulate stable coins. we are going to talk regulation and all things crypto.

this is bloomberg. >> from the start, our committee has recognized that the explosive growth of digital assets presents a variety of risk and opportunity for our economy and community especially communities of color that have been left behind by our financial system. in this committee, we have witnessed the payments industry and shifts in customer and consumer demand and the need to move money faster, cheaper, better. digital currencies are a natural continuation of the issues we have addressed in this committee over the years. we cannot regulate out of fear of the future. ♪

emily: bitcoin recording its longest winning streak since september. volatility is still the name of the game. what should we read into the bounceback? sonali basak is here to discuss. >> we have a nice bounceback and bitcoin asset prices. stabilizing at around $44,000. it has been on a tear for the past week or so. we have a big rise. i want to point out not just going, but -- it's a good day to talk about stablecoins.

we have a real rise in tether. it is affiliated with that connects where the doj seized money and bitcoin stolen from a hack and lawmakers were talking about stablecoins today. emily: regulators and lawmakers have been trying to make sense of the crypto landscape. earlier, the house financial services committee held a hearing to talk about that and more. the sole witness at the hearing made the case that they need to oversee stablecoin issuers. our guest is a senior counsel. >> thank you for being here.

take a listen quickly to something that was set. specifically, this is about technology firms and engagement in cryptocurrencies. >> the issue of the separation of banking and commerce. something the congress has grappled with for many years. in this case, we believe stablecoin as a payment instrument should not be issued by technology firm. >> as a former regulator yourself, what do you make of that idea? >> that was perhaps one of the biggest moments of the hearing today. i think her comment was that basically technology firms need not apply for the future of payments and finance that should be limited to banks and depository institutions. that is a remarkable statement

knowing that it has been the tech industry, innovators from technology that have really explored the ability to make money more accessible and much faster. that comment was pretty remarkable. americans don't like it when the government picks winners and losers but that seemed to be what we were hearing. >> you yourself work with a number of different companies that works with banks to try to make cryptocurrency more accessible. how may a comment like that take form when it comes to government regulation? >> the reference was made to the separation between investment banking and commercial banking as a basis for this separation from technology firms from payments. as we know, glass eagle was

mainly repealed by congress so it is not preston -- a precedent for what will be done here. someone has proposed that the development of stablecoins be left to the banking industry under bank like regulation. there was unanimity in today's report. representatives on the sides of the aisle seemed to be aligned for greater clarity and the importance the stablecoins are playing in the market and the need for u.s. innovation. think there was less unanimity around the idea of whether the bank regulatory regime should be brought to bear to regulate stablecoins, specifically whether stablecoin operators would be required to be banking institutions. with that, that you just went to

-- that you just pointed to, that went against the great certainty of half of the comments that we heard in today's hearing. >> you know better than anyone how hard it is to keep up with financial technology and the crypto marketplace is evolving so fast. can regulators keep up and keep keeping up? >> almost by definition, regulators and our democratic societies never keep up. it's a different approach than europe who tries to adopt innovation and tells innovators to innovate to the standard. in the united states, our approach has been to let innovation develop then regulators catch up. i can leaders catch up is not a design failure, it's kind of a design feature of our system. it means that innovators innovate to solve real problems. what is happened in stablecoins is they have innovated to solve the shortcomings of the existing

aching and payment system which we increasingly know has been underinclusive of citizens, it is too slow, it costs too much. this innovation that we are looking at the congress is trying to catch up has been solving real-world problems. i say this is a former regulator, the challenge is how do we bring clear rules that protect against fraud and elation and that behavior, but allow innovation to continue to make our financial system better , faster, more inclusive, and less costly? >> when what was the stablecoin regulation this year? how soon? >> what you saw today is a real step forward from a few years ago. they were asking basic elementary questions. what you heard today was

congressman and congresswoman up the learning curve understanding the challenges are really grappling with it. this is an election year. congressmen and women are looking for direction from the public, but are unlikely to take legislative action this year. but the discussions taking place this year will result in legislation once we get through the election and there is new coalitions in the house ready to put this forward. i hope they are bipartisan. >> a lot of people on wall street complained that the cftc and s.e.c. don't talk. i'm wondering will there be more coordination and is this time any different? >> your absolute right. i was shocked at how much the cftc and s.e.c. taught.

we established a regular cryptocurrency ad hoc joint committee between our agencies that spoke regularly. i hope that is continued under the new administration. it is so important that those two market regulators speak regularly especially with the new innovation. >> coming up, how to improve the technical interview process. how one company is trying to reduce the bias in that process and inefficiencies one interview at a time. that's next. this is bloomberg. ♪

emily: there are an estimated

3.9 million unfilled technical jobs in the united states. companies are constantly looking for ways to assess and higher technical talent quickly. the technical interview is famous in silicon valley but often benefits those who already have an unfair advantage. a new way to interview applicants rather than obscure algorithms. thank you so much for joining me. you are both engineers, you both went through traditional recording process. what is broken about the way things are done now? >> we met while we were engineers at google and we have gone through the interview process ourselves. the weight technical interviews are broken, they didn't put them

in front of a whiteboard. we were in rooms in front of a whiteboard reciting algorithmic knowledge completely broken and disparate from the way engineers work day-to-day. >> i am a warrior's fan, so i appreciate the metaphor. talk to us about who gets left behind in the classical technical interview and who has the advantage. is it generally male candidates? >> traditional software engineering interviews tend to focus on what you learn in a computer science classroom. we are often leaving out folks coming from nontraditional backgrounds. people who are self-taught from the internet or those who came through a coding bouquet. -- boot camp. software engineering interviews,

data shows they are super inconsistent. what that means is that only one third of candidates are consistent in their performance. women are seven times more likely to drop out of the interview process. that means we have a leaky pipeline. when i look at the industry, i don't see people who look like the. when i go through a process that is inconsistent and i fail, i reflect on it and i think it means i'm not a great engineer. it's not candidates who are failing, it's the process that is failing that. emily: you recently raised $5 million in funding and you are trying to take on $100 billion recruiting software industry. what makes you think that your way is better? >> we are both engineers. when we met each other, we started venting about the interview process ourselves. we said who better to redesign the broken interview process and

engineers who have gone through it? a lot of the existing tools today have approached this problem by looking at what companies are missing. it's an inefficient problem. it takes a long time to interview engineers and they did you ties process, but they haven't stopped to ask the question how do we fix the broken process? we approached it from a candidate perspective. what do we want the process to look like? this is a project based interview that evaluates for skills that are used on the job. it allows companies to hire the best nickel talent with a higher degree of -- the best technical tile -- talent with a higher degree of confidence. emily: i recently interviewed the cfo of alphabet who talked about the great resignation. >> i don't think it is the great resignation, it's the great reshuffle. people are reflecting on what they want, how to they want to

work and live their life. for all of us thinking about what does that mean for our institutions, it is about evolving the way we work, the way we interact, the expectations we have. emily: what trends are you seeing on the job market right now? are engineers reshuffling and what do they want? >> absolutely, candidates are definitely reshuffling. it's incredibly important for companies to realize that candidates have options. you need to offer an excellent experience to make sure you make an offer, they will go with your company. otherwise, you have spent a ton of time interviewing and they don't join your company. you have to offer an experience where they are fairly evaluated, they connect with your team, they understand what it would be like to work with your company. emily: your clients so far

include sigma, betterment. you are racking up some of the more established names. i am thinking about the statistic that was depressing that women found it companies got 2% of venture capital funding last year. what needs to change despite so much more awareness for the need for diversity in entrepreneurs? why isn't it happening? >> it's a great question. we wwe had a lot of interest. we had a tough time and we faced a lot of biases in the process. by building our product into a successful business, we showed that a great idea can come from anyone anywhere. it can come from founders like nikki and myself. emily: give us your vision for the future.

where are you a year from now? >> we are so excited about this next phase. we are spending a ton of time hiring and growing so we can meet the demand that we are seeing for companies that want to use byteboard in their hiring process. we have a consortium that would basically allow candidates to take one interview and share it with every single company in the consortium. that's a lot of time spent in interviews. by using this piece of the process, candidates are able to save a ton of time and companies are able to move quickly. we are really excited about growing our team and offering new products. emily: we will keep watching you both. thank you for joining us. that does it for this edition of bloomberg technology. tomorrow, we will continue our earnings coverage. we also have a live conversation

with disney after the bell. on emily chang. -- i'm emily chang. this is bloomberg. ♪

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haidi: good morning. shery: welcome to "daybreak: asia." treasury yields closing on 2%. traders are assessing if economic growth can withstand rate hikes.