>> from the heart to where innovation collide, this is bloomberg technology, with emily chang. ♪ caroline: i'm caroline hyde in new york. this is bloomberg technology. coming up in the next hour, the latest sanctions that biden administration is levying at russia as a country inches forward to a possible invasion of ukraine.

plus, the tensions heightened. how russia could you cyberattacks to retaliate for those sanctions. plus, the revolving doubt in washington between test between those crypto and those -- between those in crypto and those in charge of policing it. and for the first time in nearly two decades, there will be no new call of duty next year. what that means for the gaming industry, plus why the gaming world is going crazy over elven ring. why fans of lord of the rings might be intrigued, as well. we'll get to of that good stuff in a moment. but first, another bleak day on the moment. bloomberg's pretty good put up has an update for us. bloomberg's pretty good. has the update for us -- bloomberg's kriti gupta has the update for us. kriti: you can see behind me the s&p 500 closing down 1.8%, a lot of that pain showing up in the nasdaq, down almost 2%, just shy of 3%.

what's important to keep in mind is that big tech leaves declines. that's what you're seeing. the only sectors in the green today was, of course, energy, which brings me to the geopolitical tensions. you can see that weighs the stock market down. but that's fed into commodities, brent crude getting closer and closer to the $100 a barrel. that's going to be significant when we talk about inflation feeding back into what weighs on those tech stocks. let's talk about technicals because that plays into this dynamic. you thought the s&p 500 close into correction territory yesterday, so once again, the assumption here is that you're going to see a bounce back what he normally when the s&p 500 dropped 10% from an all-time peak. you do see a strong bounce back, now down 11% from its peak earlier this year. there was some green on the screen, though, little pocket that comes to geopolitical tensions, traditionally in those space haven moves. we tend to go to big tech.

today, that green on screen happens to be cybersecurity stocks, a last-minute selloff. but palo alto once again actually gaining some pretty blockbuster earnings there. at the end of the day, when you're talking about geopolitical risk, cyberattacks on ukraine, what better play than those defense stocks? that's the purpose cyber is plain right now in the stock market. caroline: such a great round up, tying together all of the headwinds and tailwinds in the market at the moment. i want to talk about those headwinds and precisely the sanctions we were talking about, the biden administration once again upping the ante. we want to bring in the washington correspondent, annmarie hordern. the reason you're here is you had a great exclusive interview. bring us up to speed on whatever we are with sanctions. annmarie: the biden administration today is going to be sanctioning nord stream 2 and the individuals that are part of nord stream 2. this is a pretty aggressive step.

this is something that the u.s. has really held back from doing. and this isn't just now that the driven say we're going to waive that certification -- caroline: because a reminder, the nord stream 2 is the gas pipeline between germany and russia. annmarie: and he can start to not go through ukraine as much for the gas, but instead use another pipeline directly into europe, the heart of europe. and now, even though germany says they are going to wait to potentially certify it, with the u.s. putting sanctions on it, that means the certification may never come through. but the ukrainian foreign minister said this is very welcome. they've been against nord stream 2 for years, but he's says more sanctions are needed. take a listen. >> it sends a strong message to potent, but it still dozens -- putin, but it still didn't stop him, so we need stronger measures until it gets clear to him that he shouldn't make any steps further. annmarie: heading back to kyiv now, and ukraine as a whole,

it's a state of emergency. the separatist have asked putin to send in troops, so it does feel like things are starting to escalate. caroline: starting to escalate and not only in physical form but also in cyber form, as well. there was another cyber attack. annmarie: including the foreign minister his website. the eight ministries were attacked. this was the second cyberattack that's happened in about a week. but this has happened to ukraine a number of times, one of the biggest ones in 2015 were literally everyone's power went out in the country, maybe 300,000 consumers. but they've attacked -- cyberattacks have been at banks, the metro, a number of issues. i asked him about this. he says they have been working to fortify it and make it more robust. but if you are going to tip -- tit for tat with putin, toto with sanctions -- toe to toe with sanctions, he says no, that

hasn't come up yet. caroline: let's see how cyber warfare has been ramped up. annmarie hordern. we want to, of course, discussed a little bit more about what's been happening with several of the ukrainian government and banking websites, not functioning due to server attacks. this comes after ukraine said just last week that it suffered its worst cyberattack, also targeting banking and government websites as annmarie is telling us. let's dig into it with marcus fowler. he also spent 15 years working at the cia as a global cyber operations. a man who is in the know on these things, just talk to us about the level of threats distributed have on ukraine. how impactful are they? marcus: sure, caroline, great to be here. the server attacks really go at flooding a network or a website

with traffic so they're unusable, overloaded, and they don't function. and they can be disruptive -- if, consumer trying to get to a specific website, and they can really frustrate the internet connectivity on a specific website. but in terms of broader, more disruptive impacts, i think those are still to come. caroline: ok, still to come, and still to come leveled at ukraine? or do think here in the united states, with sanctions being upped by the biden administration, we could too see infrastructures as before, or perhaps websites be attacked, as well? marcus: great question. i think the easy answer is both. you're going to see them ratchet up cyberattacks within ukraine, potentially moving into ransomware, data theft, data encryption to further cripple organizations and businesses, as well as potentially move into critical infrastructure as a

higher escalation point. as for the u.s. and the west, as harsher and harsher sanctions and more economic damage is done on russia, you will see them i think want to and attempt to respond in kind in terms of economic disruption, thinking financial institutions, banks, maybe potentially tightening or more damage to the supply chain through either their own actions or proxies such as cyber criminal groups or in ransomware actors. caroline: to that point, when you're looking at the data, when your understanding where the attacks are coming from, how do you discern whether it is indeed from the government, whether indeed it's more using other actors at there will? how do you ensure you are joining the dots in a certain manner? marcus: your attribution within cyberspace and who the actor actually was is incredibly difficult. i was very pleased to see the

earlier version of the denial of server attack, the u.s. government come out very quickly to identify the russians as the attackers in that space. i think assessed attribution is important that it is done as quickly as possible and russians, where there is evidence, can be held accountable. but i think they will absolutely be leaning as proxy organizations, potentially new ransomware groups we haven't heard of before. you're going to see more activity within that space as the russians either provide more state directed, you know, actions, or increasing to not only blind eye, but release the shackles of it in terms of those ransomware groups operating out of their backyard, as it were. caroline: obviously i'm asking you to talk from your book a little bit, but have we seen an uptick in demand for cyber protection? are we seeing the defenses being spotify? are we ready for the fight, to

be perfectly frank? marcus: i would say one of the silver linings in the increase of ransomware over the last two years is absolutely seeing private industry, especially prioritize cybersecurity more directly, right, and really start to put more resources, personnel, advanced emerging technologies into that space. and i think the u.s. government has, as well, right, as well as western allies, recognizing the increased threat. have they done enough as quickly? we are in a bit of a race condition against what will be a spike in cyberattacks and getting the right pieces in place to properly defend, right? that's the old adage of, you go into war with the army you have, not the army you wish you re-prioritized appropriately. caroline: marcus fowler, really interesting. we thank you so much, svp of dark trade. meanwhile, coming up, we're asked to going to shift gears a

little bit, get a look at the future of marketing, how brands need to rethink their marketing strategies. we undergo a digital transformation that's been launched upon us since covid. what challenges faced 2022. we'll be talking about the with david steinberg. this is bloomberg. ♪

caroline: let's take a moment to think about the future of marketing, from peloton to facebook, as we now know it, meta, the world has seen its shares of facing a post-pandemic arcing challenge. for more, i want to bring in on

its forward-looking thinking, the ceo and cofounder and chairman, david steinberg, also pushing to fourth-quarter sales numbers that beat sales estimates. talk to us, first and foremost, about your numbers, david, and what you're seeing. are we seeing continued demand and knowledge in the marketing space? david: yeah, so first of all, thank you for having me, caroline. . it's great to be here what we're really seeing here is a tremendous amount of disruption in the ecosystem as most marketers are moving from analog marketing to digital marketing. and as a lot of the very large tech players are sort of trying to consolidate control -- apple got rid of their tracking mechanism. google is eliminating their cross app tracking. they're eliminating the third-party cookie.

platforms like data global, which do not use any of those result to an identity, have been able to grow fairly dramatically. i think we grew the business, we normalized the presidential election by 42% in the fourth quarter, and we grew earnings for the year by over 60%. i think a lot of that is coming from this big disruption in the marketplace where organizations are trying to figure out how to navigate those changes and zeta global is a plant from to help them do so. caroline: i see of got enough confidence in your growth strategy from a four-year revenue up, looking to get the into excess of $1 billion in annual revenue for the next 2025. talk to us about the kind of companies that are coming to you at the moment. david: so it's a great question. obviously, not only to be rolled out our 2025 plan to get to $1 billion year revenue, and 27

plus operating margin, we fairly dramatically increased our guidance for 2022, as well. you know, we're seeing very large enterprises -- in fact, 34% of the fortune 100 today use this data marketing platform, who are trying --the zeta marketing platform. our platform is not just digital. it is built to be efficient in the way the marketing operates. and we've been able to really scale very, very quickly with our clients. caroline: so, how? how do i come as a client, want to get in front of the right demographic, the right timing, how do i do that in a cost-efficient way at the moment? more money is being spent on the likes of instagram, tiktok. is it that efficient in your perspective? david: a lot if it isn't, right? the old joke is marketers will say i know 50% of my marketing

is a waste of money. i just don't know which half. the beauty of the zeta marketing platform, combined with our data cloud, which has over 230 million opted in u.s. individuals alone, is we can we ed out the individuals that do not have a propensity to want to buy our client's products, and we know exactly when they're in markets. so we're able to hit them at the precise time with the precise message, and we're able to pull out of that marketing funnel the 50% of customers who would not be credit approved and/or have a propensity to want to buy that product. so just by removing them, you're able to massively increase the efficiency. and then by using the data cloud, wher eyou're interacting with these two to 25 million opted in u.s. individuals -- 225 million opted in u.s. individuals, you know where to market products and services,

and target them when they're thinking about the products. so those two things allow us to be very efficient with our enterprise clients budgets. caroline: you said opted in. how are we in terms of general trend lines? how many people are going to want to opt in? how many people see the quid pro quo and say i'm in? i want to be targeted that more efficiently. david: yeah, so listen, we came about this with a different approach than most companies. we have acquired a large number of technology platforms that power publishers. in exchange for the publisher getting our software platforms at no cost and the consumer being able to use those tools at no cost, we simply ask them to opt in. in return, we guarantee the consumer we will never sell their data to anybody at any price at any time. we simply use that data to build intent-based scores on what does the consumer intent to do next?

do they intend to buy a particular credit card? do they want a blue car of a particular model? are they going to turn off their wireless platform? and we use that data to build a curriculum of contract on behalf of our enterprise clients to help them lower turn or create customers more efficiently. so by always keeping the consumers data private, we get a lot more consumers who are willing to opt into the platform and work with us because they know their data is never going to be served. caroline: here's hoping we get stocked a little bit less by ads for things we've only just purchased. thank you very much indeed. david steinberg really making the time for us when he's just released his earnings and is a serial entrepreneur. meanwhile, coming up, call of duty delayed. we'll talk why activision decided to postpone its flagship game by a year. what people are saying about it. that's next. this is bloomberg. ♪

caroline: now we've got to talk about it, call of duty being delayed, the first time the franchise will be without a mainline release in nearly two decades. now, we want to talk to our expert, bloomberg station schreier for more on the reasoning behind it. it feels as though with the previous release didn't live up to expectations. >> that's exactly what happened. so, "call of duty" has been an annual release, come out every fall since 2005, so this is pretty stunning. it's been a big change. the last time we did not have a "callof duty" was the beginning

of the first george w. bush's second term. talking about a very long time. lester's call of duty game underperformed, which led activision to start thinking, maybe we need to think this whole release schedule thing, maybe give these titles more breathing room. caroline: ok, so maybe a little bit more desire, working up our appetite for the latest release. it also comes at a time where there's a lot of change in activision, notably being bored. could it have anything to do with that? jason: i'm sure there's been some conversation or another about that. but i think legally, even though they've announced the acquisition that microsoft is buying activision, it is not quite closed. it needs to go through regulatory approval, expected to be finished by next summer at the latest, summer of 2023 at the latest. until then, activision is legally required to just continue operating anonymously.

i'm sure they are in conversations. they are still making their own calls. i think this was more about the health of the call of duty franchise than it was about microsoft coming in and wanting to make some changes. caroline: talk to us about the independent changes they are making ahead of the sale from an executive shakeup perspective because they will want, the inquirer, the maker of candy crush, some executive turned their? jason: yes, again, just today the makers of candy crush finance their president and chief creative officer was departing. who knows if that is really related to the microsoft acquisition or they want to spend more time with their families? we all know what that typically means inexact speak -- in exec speak. it's possible these folks saw the writing on the wall and microsoft is going to make changes anyway, might as well get out of here early.

i do not think microsoft is getting involved too much just yet. caroline: ok. talk to us a little bit about where it's hot right now. if we are going to have to wait for activision to release call of duty, there is another game that everyone seems to be talking about, elvin ring. jason: elvin ring comes out on friday. the embargo lifts a bunch of criticism just hit. last i checked, it was tracking to be one of the, if not the best reviewed games of all time. caroline: we've heard that before -- what was the winter before? -- the winter before? jason: i think the legend of zelda was a top one. mario odyssey was a top one. last i checked on open credit, -- open critic, 96 out of 100, by far the biggest game out of the

caroline: bird technology. let's get back to some market moves today. we have seen tech in particular under pressure amid the tensions between russia and ukraine. let's talk to ryan with us in chicago. is it theoretically risk off or is it more a rising rates environment that means tech feels the pressure the most? >> we are seeing both of those factors come into play at the same time right now.

we have long had concerns about the prospect of rising interest rates and inflation, for policy. we had this new geopolitical tension that is another reason for investors to be a little more cautious. growth side of the market is a reason we have seen people pullback from tech. caroline: the nasdaq 100 off by 17% from its all-time high. basically heading into bear territory. we so the s&p 500 had a technical correction to talk to us about what analysts are saying. you have goldman sachs calling about a regime change we are seeing in the hedge fund area. morgan stanley looking at maybe the silver lining. the opportunities they are in your -- they are in. >> morgan stanley came out with data yesterday that looks at fund ownership for major technology stocks. it found that when it comes to names like apple and microsoft, these are under owned what to to their weight in the s&p 500,

which the firm interprets as a puzzle as a positive signal. -- as a positive signal. caroline: are we likely to head to a bear territory? with the rising tension with russia and ukraine, are we in for more pain to come? >> ever what i have spoken with expects a lot more volatility and no one is really gelt the potential for additional downside should when it comes to these major names like apple and microsoft and so forth come up will continue to see strong long-term growth potential here. strong earnings power. those are factors that do have people continue to be a fan of them even if i the short term there is potential for further downside. caroline: thank you so much. stay warm. let's talk about the down day we had on the overall markets. the companies that outperformed.

one of them was overstocked, surging. navigating the ongoing headwinds that our supply chain issues, labor issues, inflationary issues. let's talk about how he managed to navigate that and a little bit of blockchain. jonathan johnson. congrats on the numbers and talk to us about how you have managed to ensure inventory is where you need and supply is where you need it when the rest of the world is struggling with it. >> seven consecutive quarter profits. second consecutive year of market share growth. we have a vast and distributed supply chain should over 3000 partners that have good for us. -- have goods for us. we are very good at forecasting for our carriers what demand will be up to we were not -- will be. we were not hit with any

delivery problems this past year. or supply chain. we think are distributed model helps us navigate it well. caroline: do you see any easing of some of those pressures in the industry? >> i think the bottlenecks probably last for bulk of 2022. that supply chain is pretty stressed. the small kink tends to be amplified. we think our system works well in times of high demand and low supply. caroline: what about inflationary pressures? people come to you for value. is that going to be a headwind, tailwind for you as we start to see people worrying about the price point? >> people do recognize us for smart value, which means the best product they can get for their dollar. there are inflationary headwinds

for everyone whether it is labor or goods or gasoline prices. we have done a nice job being able to absorb those with our suppliers. and pass as little of those as possible onto our customers. our customers, she expects a great deal for her dollar and were able to deliver that. caroline: i'm interested when you say gasoline. a lot of people would say delivery and trucking. how are you finding -- when we look at geopolitical tension, we look at oil prices heading toward $100, is that something you brace for a little bit more? how do you lean on your supplies? >> we have to lean on them. we work closely with the ups and fedex's of the world. it is a difficult thing to manage. we have a great supply chain --

great supply chain team that manages those well. caroline: looking at your share price which is doing incredibly well on the day. how are you talking to investors at the moment? are they feeling you're getting caught up in valuation question mark in time where we start to look at rate hikes and issues like that or what do you make of the valuation of your business? >> i mentioned on our call today the board authorized share repurchase amount. we think our stock is undervalued today. we have then -- we have been in a company blackout period since the first of december up s. . i think we are in a good position to exercise our buyback. caroline: making the most of it yourself. you're a man who is known for being the front of the pack when it comes to dream homes but also a man who has understood and got to grips with luck chain before many did and before he became

the catchall term. i'm interested in medici ventures. that was of the part of the business you had making investments in some of the blockchain technology. you have doubled down on that. this is a company you own a minority stake in pick i percent alert analysts are liking the funding round t0 is getting should remind us what t0 does. >> t0 is blockchain capital markets. it uses blockchain to settle trades more quickly. it is able to deal with cryptocurrencies and and fts and security tokens -- of currencies and nfts and security tokens.

the former chief strategy officer at ice would become the ceo at t0. we think this is a great omen for the future. as markets move to the 21st century, we think they are going to use block chain. we think they're going to be able to trade crypto ends dock and fts in one place. t0 is set up for the. -- for that. i think it bodes really well. caroline: how long will overstock remain a key investor? what is your forward-looking plan in this respect? >> we have investments in 21 different blockchain companies. about a year ago, we formed a limited partnership in venture capital firm that is the general

partner of that fund and it manages or oversees those 21 companies including t0. it was instrumental in closing this deal. we are letting them manage the exits and how those things work within that one -- that fund. i see a long future for t0. caroline: fascinating being able to talk about the consumer and the blockchain world with you at the same time should stay well in salt lake city. coming up, crypto and washington. the relationship between the industry. the swapping of talent from one to the other. this is bloomberg. ♪

caroline: time now for a crip will report good we would -- our crypto report. we went to dive into the relationship between crypto and capitol hill. there is the potential for conflicts of interest. could it potentially undermine efforts to regulate the sect? there has been a deep dive done by my colleague at bloomberg. you join me to talk about the titan -- the data being crunched. what do they make of the scale of the revolving door between capitol hill -- capitol hill and crypto? >> they characterize this as an

explosion in activity in recent years. i talked to them about when this started. they said it was slow to start now we are seeing more of it. i can tell you from personal experience having covered this for a couple of months that on a near regular basis i'm getting announcements about personnel shifts, individuals moving from jobs at the white house, regulators into companies like coinbase or groups that lobby or represent them at law firms. caroline: is there a time or tipping weight that started this move? >> i talked to the director of the transparency project and she said they started looking at data as far back as 2012 but that there was not a growth until 2014 and we have just started to see that increase since then. i can say that the infrastructure will that was passed last year contains some

provisions the industry did not like all that much. that has spurred some activity also on the lobbying side. caroline: going back to that time when it was that to killer bill -- that particular bill that took an elf a lot of people by surprise -- took an elf a lot of people by surprise. we did some number crunching about the sheer lack of lobbying and the money spent by other industry groups vis-a-vis crypto and it peddles in -- and it pales in comparison to is that -- in comparison. is that changing and what are the concerns highlighted by the reporting echo >> that is definitely -- reporting echo two that is definitely changing. we are seeing super pac's dedicated to crypto. companies like coinbase and others beefing up their lobbying, hiring more outside firms. in general we are seeing a lot

more money flooding into washington should that was one of the concerns raised in that report. they said having the greater flow of regulators into the industry could have an impact on the regulatory process and prevent the rules from being as tight as they should be. caroline: for full disclosure, my husband is a senior manager at coinbase. i'm interested in whether this is unique or not. crip joe is so unique because of the sheer scale of money being made should i can imagine an awful lot of money -- what about revolving door between capitol hill and other industry groups? >> this is one area where ripped out is not you -- where crypto is not unique. we see it in all different types of sectors. i think timely actually we saw a pair of lawmakers including senator elizabeth oren asking

for an investigation into a flow of officials from large accounting firms into the irs and treasury and how that impacts tax rules. definitely a common trend across different sectors. i think the difference is this is a growing trend in crypto, which is such a new industry and it reflects that it is getting more maturity and getting more influence in washington. caroline: thank you so much for bringing us the insight. proving social impact and conclusion. will be talking with -- twilio out with a new report today. how they are updating progress against the company antiracism pledge. this is bloomberg. ♪

>> what it will take is not just simply simple bandages and putting in a program so to speak, it is about fundamentally redesigning the culture that exists within tech. >> the old way of doing things is no longer the way of the future. the data shows individuals from the starkly excluded communities are having a different experience that starts with the data and that will help us think about strategies and solutions. >> we have to address some of the root problems. what we do at the moment as play diversity musical chairs. we have to expand the pool of the talent by addressing inequities and other systemic variants. caroline: some of the experts from uber to spotify.

what business responsibility means to you at twilio now. >> thank you. it is really interesting. when i think about the social contract between our society, the idea is that companies make our society better. that is why we allow things like a piece of paper filed in delaware or dublin can earn property and all interesting thing is what makes society that are is it increases production and jobs in the companies make profits up your die think now society is asking more from that contract. we have this belief that our existence should make communities around us and society overall stronger because

we exist. that is a multifaceted aspect of this contract that goes well beyond what the last generation of business leaders thought. caroline: it is also a lot about the data. how you ensure you are gaining true diversity. how you are seeing that payee quality is coming about. how you are tracking -- how are you tracking? >> we tried to check our impact along those aspects but we do it not to have the number to show that we are transparent but we actually use when you think about ddi, a lot of companies think we have to put it out there to prove something to the world. what we think about is the data is necessary. to use the data to move, not proof. you use the data to impactor activities and to drive how you are booking the company to make a company that is ediverse.thatg data.

caroline: can you give us an example? i know you have been helping nonprofit organizations to align themselves with you and other businesses. can you give us exact data echo this is -- exact data? >> when the vaccine came out last year, we set a goal to help vaccinate a billion people worldwide. we put to work our product, or technology. we put to work our people and their volunteer time and the resources and funding from the company. just a year in, we have already helped to vaccinate 350 million people. that is a huge number but we have just darted a third of our way to a goal of a billion. granted partnering with organizations on the ground out there trying to vaccinate people in poor countries. donated $10 million.

i'm very proud of what twilio has done. this is another example of how we set goals. caroline: do you hope it disrupts from within? you leading by example in some way and how are you seeing other companies embrace what you offer, use your own tools to do the same thing? >> the opposite of trying to have a monopoly on doing good. we want to open-source. any idea we have and help other people to do good as well. and of the last pages of our report we released today shows our lessons learned and it talks about some of the mistakes we have made and the hopes of the can do that we started a program called flinch 1% -- we played -- called we pledge 1%. we help them execute that by giving them ideas, helping them donate their equity and we open-source this and invited any

other company who wants to bring this program to their employees. we have dozens of companies who have brought this program to their employees. we have tens of thousands of employees at a variety of companies participating by giving 1% of their resources. >> do you think it sets you apart in a talent perspective? that people are coming to twilio because of this or is this an added benefit? >> we have made impact an integral part of our business. at some companies, doing business as a cost. we think of it as a virtuous cycle. the more good we do in the world, the more that is going to engage our employees and build highest team for a company that will attract more customers, that will attract more employees, that will help us build a stronger company that can allow us to do more in the world. that is why twilio.org is not a

call center. it is a business center. does business to get our product into the hands of nonprofits who can be using our product to do good and then we partner with this -- these organizations and make them successful. that is a new model i am proud of. caroline: just briefly, when you're looking at a billion people vaccinated, this is on the emerging markets focus because i'm thinking of eric adams not needing people to be vaccinated to go out to restaurants and the like. >> a lot of this is in emerging countries where there is not easy access to vaccines. we are happy to partner with a number of organizations doing amazing work. even here in the united states and other wealthier countries, you still see vaccine hesitancy. you still have a huge effort to mobilize and get the u.s. population vaccinated and we are still not done.

i see this as an effort that saves the world. caroline: so great to speak with you. really appreciate the time. that does it for this edition of bird technology. join us tomorrow -- this in his next -- this edition of bloomberg technology. this is bloomberg. ♪

>> a very good morning. we are coming down to asia's major market opens. >> welcome to daybreak australia. the west expand sanctions over ukraine. geopolitical tensions set to send a do stocks further south

after volatile wal