>> innovation, money, and power collide in silicon valley and beyond. "bloomberg technology" with emily chang. >> from the heart of where innovation, money, and power collide in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i'm emily chang in san francisco, and this is " bloomberg technology." coming up, president biden arrives in brussels ahead of a meeting with allies on the war in ukraine including a nato summit. we break down what to expect

from this trip to europe. plus, new details on the hacking group behind the okta breach. why they have and called laughably bad even as they have managed to infiltrate so many large-scale tech companies. and moderna says it's covid vaccine produced a strong vaccine response -- strong immune response in kids under six but is only moderately effective against omicron. more on that in the next hour. first, u.s. stocks declining and the s&p 500 falling for just a second time in seven sessions. our ed ludlow has more. ed: definitely lack of consistency, at least in terms of this direction of travel in equity markets. the s&p index down 1.5% on wednesday. if there were outsize declines, it was certainly in semiconductors. you see that in the philadelphia semiconductor index. we see yields on the treasuries

easing. the 10-year below 2.3%. west texas intermediate crude, double uti, up to $114 a barrel. there's concern about ongoing disruption to supply. you wonder how much of biden's trip will focus on energy markets while he is talking with world leaders. we're also in the debt of energy season and adobe reporting -- the depths of energy season. we have seen the biggest drop since mid-december. they gave in outlook for the current period which shows competition creeping into design software, and you see them down 9.3% on wednesday. you and i will talk about this later in the show -- chinese companies listed in the u.s. tencent recorded single-digit growth for the first time since

2004, basically saying the era of hard and fast growth is over and they will comply with the crackdown. other -- look at the nasdaq golden dragon index. over the last seven sessions, it is up 50% from a 2013 low. as concerns start to ease about the regulatory clampdown, we see in china authorities being more supportive of the technology sector in weeks to come, especially in light of a weak market return for chinese tech companies. you talk about this -- okta. i'm not sure what happened, but the stock falls 10% on wednesday, the biggest drop since 2018, a significant decline. the only real news is the company coming out saying that only 2.5% of its customers were

impacted by the potential breach, but really severe drop -- you see that, look -- after we saw pretty much muted performance on tuesday. emily: we will talk about that later on in the show. thank you. president biden in brussels set to meet with european leaders and attend an emergency nato summit. the goal -- to show that the world is united against russia's invasion of ukraine. bloomberg's local news director with us now. what are we expecting from this trip? what does president biden want to convey? jody: there are several main messages to look for from president biden now that he is in brussels. one will be unity, that nato and the european allies and the u.s. and the u.k. are united in tired enunciation of vladimir putin and his invasion of ukraine and that they are doing what they can to try to stop it from going any further and to stop him from

any games he can make their -- any gains he can make their and to punish him. biden also wants to show solidarity with european countries, and they are taking in so far millions of refugees. more than 3.3 million ukrainians have left their country for neighboring countries. more than 10 million have left their homes. obviously, some have stated in ukraine, but they have left their homes and communities. president biden wants to make it clear that the u.s. supports and emphasizes -- empathizes with what will be a growing refugee crisis. thirdly, he wants to make the case for more sanctions. the u.s. has had the toughest sanctions on oil because the u.s., frankly, imports the least amount of crude oil and petroleum products from russia. european countries in a much different situation. those will be the three messages

from the u.s. president. emily: how could we see the u.s. step up sanctions and put pressure on europe to step up sanctions? jodi: the u.s. has already gone a long way toward sanctioning the oligarchs in russia and done things like ban the import of russian oil or russian crude oil to the u.s. however, they are taking more steps than the national security -- and the national security advisor said today that president biden tomorrow and on friday will be announcing more sanctions against oligarchs, against individuals, as well as companies and other entities, so the u.s. is trying to double down even more on those sanctions, even as vladimir putin continues to criticize them. i think we will be seeing at least more verbal accusations

made against russia. president biden before he got on the plane when he was talking to reporters, before he got on air force one earlier today said that he would not be surprised if vladimir putin used chemical weapons in ukraine, so there will be a lot of warnings as well as talk about sanctions. emily: thank you for that update. we will continue to follow the president's trip. meantime, instacart is launching a platform of services including 15-minute delivery for grocery retailers and warehouses, a move that cements's -- cements the company's turn into enterprise retailer. coming up, they claim to have hacked some of the biggest names in tech.

how they have managed to breach so many large-scale tech companies despite being described as laughable. that is next on bloomberg. ♪

emily: the latest now on the evolving okta breach. the identity management co. many businesses use as a top line of cyber defense. the group behind the breach calls itself lapslis$, and bloomberg reports it has a murky background. for more, i'm reported -- i'm joined by jack gillam. tell us what we have learned in

the last 24 hours. we've heard "laughable." we've heard the word "murky." who are they? jack: this is a group that has risen up in the last year or two according to experts. they have made bigger splashes in the last few months. they operate on telegram channels which we might use to communicate with folks. they use it to brag about what they have hacked. we think of ransomware actors who take our data and encrypted and offered to unlock it if we give them money in exchange when we think of these breaches. just like a broken clock is right twice a day, experts say even idiots can do bad things. in this case, they have released some source code of being --

being -- bing, which is microsoft's signature search engine. they might be kids, they might be amateurs, they might not be nation state actors, but given the right tools and opportunities, that could be dangerous. emily: they hit microsoft. they have been targeting crypto. and the okta breach. okta says the company itself was not breached but due to the breach of a third-party, 366 okta customers work compromised. how serious is it and what does that actually mean? -- 366 okta customers were compromised. jack: first, okta is an identity management platform, which is a fancy way of saying you can log in, put in your credentials to get access to all sorts of things. it essentially is like a mainline authentication to get into, say, a company web portal,

to get into a software developer's backend -- you name it. it is only has the company says -- it is only, as the company says, 2.5%, but that is still hundreds of companies. the investigation is still ongoing and details are still coming out, but the worst case scenario, these attackers could get access to these victims' networks. even though okta may not itself have been breached, if these attackers were able to get into that stream, they could pull out all sorts of data. emily: it does sound pretty serious indeed. just to underscore this, you said lapslis$ is not a nationstate-tied hacking group. does this mean this has no relation to potential russian cyberattacks or the chaos going on in cyberspace right now as a

result of russian invasion of ukraine? jack: it might not be, but we also need to realize -- and this is to follow up on the repeated warnings by the u.s. government and others -- that russia is looking for opportunities to access major companies and their networks in order to bring them down, especially critical utilities. we saw the senior u.s. official in charge of cyber who made a public plea about companies updating their security, adding what's called two-factor indication. you might have a loose group of folks trying to infiltrate companies and steal their data, but these two things are not mutually exclusive. you still have what the government calls the persistent threat of russian nationstates, and customers need to do more to protect themselves and their information. emily: thank you for that information. i want to continue this

conversation with a former ceo of the u.k.'s national cybersecurity center and managing director at halogen capital. thank you for joining us. so far, it seems we have seen a burst of cyberattacks from russian would-be attackers since the war has started. would you agree, and why is that? >> thank you for having me on. i think saying there is a dearth of attacks might be taking it a little bit far. there have been some important attacks of satellite networks, which according to ukraine because serious disruption to communications, but that is the type of thing we have seen from russia before against ukraine, and i think a lot of people would have expected a serious intensification of that, and that has not happened. why might that be?

it might be that russian cyber hackers were not ready. maybe they were not told, and unlike some military operations flying a bombing squad over a city, a sophisticated hacked of a power grid actually takes a long time to plan, a lot of skill, resources, and a bit of luck. you have to remain undetected. also, frankly, when you are in a state of full-scale war, blowing something up is easier for the invader than doing a sophisticated cyber attack, so there are all sorts of reasons, but i think the sort of cyberwar that we hear has not happened yet, but we are still in this crisis, and i think the president was right to sound the alarm the other night about what might happen because we need to be prepared. emily: how serious, then, would you say the threat is of russian cyberattacks and if these

cyberattacks do happen, how damaging could they be? >> it depends on your starting point. if you subscribe to the hollywood version of cyberwar where normal life is completely blown apart, i don't think that is realistic. that is extremely hard to do at scale. obviously, if you are in ukraine , you are in fear for your life, your way of life, the survival of the country, so they have worse things to worry about than computer hackers, but if you are looking at the risk to the west, we spoke earlier about the ransomware attack's and the criminal attacks, and russia has got both criminals and state workers who are very good at hacking, and maybe they don't need to do the elite level attack to cause real difficulties. last year, russian criminals attacked colonial pipeline

systems and cost fuel shortages. another bunch of russian criminals who pledged support for president putin and his invasion hacked the iris health care systems, causing huge delays to cancer operations, nt needle services and so forth. -- and t natal services and so forth -- antenatal services and so forth. it could be seriously disruptive and that is why i think authorities are right to sound the alarm. emily: what kind of counterattacks are being waged by the united states and others around the world at this moment? >> it is hard to say. occasionally some operations get declassified, but i don't think we have some magical weapon that would get put into change his mind. otherwise, we would have used it by now. let's take the operation by irish health care.

would we disrupt the civilian health care system in russia? it is technically possible, but are we going to do things to public and russian civilians that we are not prepared to do in the physical world? some of the hacked of his -- hacktivists have been disrupting media. we had these highly digitized societies that are more digitally advanced than most of russian civilian life, so it is not really a case of fighting cyber with cyber. the sanctions, the diplomatic pressure, those are our ways of pushing back using cyber capabilities. emily: meantime, we are getting some headlines on lapslis$, the group that we believe hacked okta earlier this year, that a teenager is suspected by cyber researchers of being the

mastermind behind this operation, a teenager who still lives with his mom in england. what is your take on what happened with okta, quickly, and if it has any ties to the chaos going on in cyberspace as a result of the war? >> we are moving from the fog of war to the chaos of the lapslis$ attack. there's no evidence that i see of any connection to the war. actually, it is a reminder that people can cause chaos and may have on the internet even if they are not connected to politically motivated objectives, even if some of their methods are laughable, so that is a critical reminder of vulnerabilities we need to clean up in our digital environment. emily: paladin capital group managing director, thank you for joining us. coming up, talking about concrete ways to improve equity and business. we will hear from visa's ceo

about the company's decision to suspend operations in russia and how it is helping employees in ukraine next. this is bloomberg. ♪

emily: at the bloomberg equality summit, the visa chair and ceo weighed in on the difficult decision to suspend operations in russia, and he spoke about how the company is helping employees in both russia and ukraine. >> we have employees in both ukraine and russia, so this impacted us in both countries. from the beginning, our number one goal was to get as many people to safety as we could. the reality is today, we have about 60 families that we took care of where we did send vans

through a couple different security companies. almost all of our global security people are in hungary or poland right now, and we extracted people when we could. it is getting harder and harder to do. we have about a dozen people left in kyiv. it's going to be hard to get them out at this point. most of our employees are scattered along the western coast hoping to stay, hoping not to have to break up their families. when i was in poland, that's when the base, 12 kilometers from the polish border, was bombed. one of our employees' husband was in the army and she was facetiming or chatting with him every day and had not heard from him. she grabbed me and told me she had gotten a text from him that he was alive, which is good

news, but it shows the impact this is having. we are equally committed to our russian employees. we ended up two weeks ago shutting down or suspending our business in russia. not an easy decision, but a decision that was driven by three things -- one is with the sanctions, it was getting increasingly difficult to operate. number two, the reality was that we were concerned about this unprovoked war that had been thrust upon the people in ukraine. and number three, we thought that the mistake -- for the sake of everybody that an orderly wind down of the business, where we were not forced into it by another round of sanctions, was in the best interest of everybody. we subsequently made available to our russian employees the ability to relocate, and if they relocated, we would give them a job.

we had a town hall with them sunday morning, and by that wednesday, 70 of them and their families had already moved to dubai. i did not get a briefing this morning, but last i knew we were somewhere in the neighborhood of about 120 employees and their families had migrated to russia, so we will see what happens. a lot of these folks are hopeful that they will get back in weeks. i'm not sure that's going to be the case. i think this is going to be a prolonged battle. i think putin underestimated the will and the skill of the ukrainian people. emily: visa ceo al kelly. instagram lets you switch your feet so you can view the most recent posts first. this after years of complaints. in a blog post, instagram saying it wants users to feel good

about the time they spend their, giving users the tools to shape their own experience. coming up, progress on moderna's vaccine for kids under six, but not so much against omicron. this is bloomberg. ♪

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emily: welcome back to "lumbar technology." modernity says it's covid-19 vaccine produced a strong immune response in children under the age of six, and initial response from final stage trials, but it showed only modest response against omicron. i want to get more on this with bloomberg's drew armstrong. what are we supposed to make of this, and why is it so hard to

get this vaccine buttoned up for kids five and under? drew: what we know is you do see this modest efficacy for kids six months to two years and 37.5% kids two to five, which is so so, below the fda's prior stated threshold, about 50% of what they are looking for. the antivirus response, the immune system's line of defense, looks similar to what you see in adults. that's good. in terms of severe outcomes -- hospitalization, death -- it is inconclusive. part of that is those types of outcomes are so rare in kids, luckily, that you would have to have a truly huge trial to be able to measure them. they did 67 hundred children, i believe, in this and saw none of those severe events in either

group, so it is really hard to get the data when you are looking for events that are that rare. emily: pfizer vaccine -- pfizer's vaccine has experienced these problems. is there something about children that makes it more difficult or has it not been as high a priority? drew: looking at hospitalization rates for younger children, there were about one in 100,000 of the population at any given time, substantially less for adults -- substantially less than for adults. about 1/20 the rate. it seems to be less about the actual vaccine itself and more a statistics problem where to get a result out of this, you need some, you know, meaningful number of kids to get sick enough to be hospitalized in your placebo arm, and none in the vaccine arm, and because

those events are so rare and because you are doing this with only a thousand kids -- a few thousand kids, it becomes really hard to detect those in a way that is statistically meaningful. when you run these trials, you see the antibody response that this looks like it works the same way it does in adults, and that's true the same way it should be for kids, but when you are looking for that type of real-world efficacy where you need these really rare events to happen in a defined population in a limited period of time, it is just really hard to get that and not have it be statistical noise. i think that has really been the challenge. this is a trial design and staff problem. it does not seem to be as much problem with the drug are the vaccines themselves, but again, it is really hard to measure. emily: thanks for walking us through the complexities with this. some moms with kids in that age group very anxious to see some

progress. i want to continue the conversation and talk about how the pandemic has impacted the health care landscape. thank you both so much for joining us. i want to talk a little bit first about what your company does. you focus on specialty lab tech, which to be fair, often get ignored by traditional doctors, traditional western medicine, are not covered by insurance. what is the gap you are looking to fill here? >> yeah, the gap is really -- one piece of it is the type of lab tests we give doctors access to. our platform allows doctors to have access to over 3000 different specialty lab tests. we are talking about dna testing, micro biome testing, advanced hormone panels, and things like that.

our mission is to make personalized access to medicine accessible to everyone on the planet. we talk more about the gap in how we are being treated, but what is happening on the macro level is this shift toward patience did -- patients demanding more holistic and personalized care. emily: let's talk more about that. some people are learning the hard way they need to be their own advocates when it comes to health care. where do you see this in the health care system, and how do you see this as an opportunity to address those? >> first off, thank you so much for having us on the show. it is great to be here. we are really excited to have led the series because the shift that tara just described, there's enormous consumer demand, and there has been a lack of accessibility and availability for this sort of

testing, some of which is newer -- newer diagnostics and type of test that are emerging. things like genomics, micro biome testing, that we are just starting to get really great data on and be able to use in a personalized and holistic manner. as always specialty test have been merged and there's growing demand -- as these specialty tests have emerged, there has been difficulty accessing those tests and synthesizing what the data means and how to interpret the diagnoses and actually taking action, so that's where we see enormous potential to make root cause care just normal health care that every patient and every consumer has access to. emily: health care and our needs have evolved dramatically. i'm curious about your thoughts about where we are in this pandemic and the decision to live with the virus but keep businesses, for example, open, even though we are not

necessarily at the final and -- and -- end. is that the right call? >> that is a tough question and tougher any one person to answer and i think we are seeing that with broader government and state by state regulations as well. we are seeing this continuing epidemic and how we will be treating that day to day. many people have experienced the disease but have not been rid of the symptoms yet. one struggle i think we will have is how to actually treat all these people who are experiencing these long covid symptoms. emily: how do you think about that? obviously, we are in a whole new world. we are going to be living with an epidemic for potentially years. what does that mean from a health care perspective, and how does that influence where you

are placing your bets? >> it has had an enormous impact on the investment landscape. one of the major changes that has happened has obviously been the adoption and acceleration of at home testing, which placed in really well with a lot of momentum we see as well as with the availability of telehealth and accessibility of that, and i think making health care more affordable, more accessible, and more holistic, taking into account mental health, physical health, and the environment is really important, and we are starting to see the potential of some of the new technologies and new models of care that are emerging really on display throughout covid, and that is what has been super exciting for us and has been behind a lot of our investments the last two years. emily: all very important.

we will keep our eyes on you both. coming up, where bitcoin goes from here. we talk about the crypto landscape, the war on ukraine, and what institutional adoption of cryptocurrency looks like over the next few years. more on that next. this is bloomberg. ♪

emily: time now for our crypto report. after breaking 40,000 for a bit, not going much higher or lower, staying in that tight range, why

isn't it breaking out? sonali: that is the big question. we have been in a $50,000 range since the beginning of the year. we have not even hit even the highs of this year. the big question is -- what will give bitcoin another leg higher? one question we will have answered by our next guest from pump -- pump -- pomp investment. thank you for joining us. what is keeping bitcoin from breaking out this year the way it did last year? >> one of the things is that the supply/demand mechanisms are very well understood and you can check where the supply is and how illiquid. what we are seeing is that more long-term holders are acquiring bitcoin, taking it off of exchanges. minors are -- miners are

acquiring bitcoin and not selling what they are acquiring. that catalyst will go ahead and ignite this underlying illiquid market and i would spec -- i would expect to see a big move in the bitcoin price. will that happen in the coming weeks? will it take months? nobody knows. but with all the supply coming off the market, it is becoming highly illiquid. sonali: i'm curious about the private markets. you had been tweeting about the yacht club creator and the big speed round. why do you think the private space is garnering so much money and what do you think about private valuations? >> if you are investing in bonds, you're losing. if you are holding cash, you are

losing. people have to go to the private market. the second thing is this is generational. if you want to get asymmetric returns, you have to go and invest in bitcoin and cryptocurrency, in the infrastructure, in liquid assets. that is what every great investor is doing. the ones sitting out of this market will frankly just be left hind. seeing this 450 dollars round is a perfect example. these guys are operating with a 92% margin. they've got nine figures of revenue at two years old. anyone on the planet that would see those type of metrics would combine these metrics with this type of momentum. there are people who point and laugh and do not understand it, but the world's wealthiest people today are crypto investors and my guess is that over time, the world will be --

the fortune 1200 will be dominated by crypto investors -- the fortune -- the "forbes" 100 will be dominated by crypto investors. sonali: why don't you think bitcoin has broken out in a bigger way? >> bitcoin is up 25% since russia invaded ukraine, so ultimately, people tending to look at volatility overlook what has happened in just the past few weeks, but it is outperforming. we just don't think about it trading in that range, so i think that watching what has happened on the ukraine situation is a perfect example. they roost over $100 million -- they raised over $100 million in crypto. that is more than most countries raise. that does not even include the

ngo's or any of the non-government-type organizations that also got those donations. i think ultimately what people are waking up to is these payment realms are superior to every other payment realm in the world. it is true for individuals, corporations, and nationstates. if we are talking about nationstates like el salvador, the united states where the president and his administration has not said they want to be a global leader or a country being invaded by a nuclear arms adversary, every single person needs this technology, and if you don't undock it, somebody else will and you will be at a disadvantage. emily: two new investors, it is really bitcoin, theory them, and everyone else -- to new investors, it is really bitcoin, ethereum, and everyone else.

>> this is a rotation from an entrepreneurial-driven industry to an institutionally driven industry, and we are sitting at this point where we are crossing the chasm, and the question is which entrepreneurs will be institutionalized and become public? there will be a shakeout, and obviously, 6500 cryptocurrencies are not going to be around in a decade. emily: what do you think the cryptocurrency industry looks like in five years? how many survive and which ones? >> i think he is dead on. any time you have brand-new technology, tons of capital flowing into an industry like this, you are going to get a lot of folks who are experimenting, but the truth is most of them do not last. if we go back to the late 1990's as an example, all the ideas were right for streaming music

and food delivery, but it took another decade before the infrastructure was in place, people understood the technology, there was a consumer behavior transition, and i think the same will happen here. the beauty of this is this is not the first attempt at this. for over 40 years, people have been trying to create digital currency, and now it is receiving global adoption. the same thing is likely to happen in many of these other ideas. it will just take a while for us to get there. sonali: you're someone who has moved to miami, a place where the mayor has been very openly accepting of cryptocurrency. are you seeing other states truly adopt cryptocurrency as a way of accepting payment and welcoming some of the community there? >> i think that miami is the shining example of what freedom and leadership is in the united

states today. this is the last place in the world where socialism is going to take hold and what we are watching play out here is a resurgence in the fact that leadership does matter. the mayor has taken a city that many people did not know existed outside of the miami beach and south beach tourism area and promised one thing -- i am going to cheer for your success and do everything i can to help you be successful. the sad part is that is a message that is exactly 180 degrees different than most people have an hearing in places like new york city or various cities across california. i think bitcoin is a big part of that story. it is not the only part of the story, and what you are now watching is politicians at the local, state, and federal level are realizing bitcoin is good for their campaigns and good for business. i have had tens of different politicians running for different positions across the

political spectrum in this next election reach out, and they are leaving messages, "time probe bitcoin," "i'm pro-crypto" -- "i'm pro-bitcoin." if you are anti-crypto, you will be voted out. politicians are looking at this as both a carrot and a stick. it is a carrot because you will get the support of the community because you are pro-the technology, and it is a stick because if you are anti-the technology, they will vote you out. emily: thank you. coming up, falling into line. the latest company to acquiesce to china's crackdown on technology. that's next. this is bloomberg. ♪

emily: let's talk china tech now. tencent, the latest company in china to embrace a new paradigm of stricter government oversight. shares of the social media and gaming giant drop after posting single-digit growth for the first time since listing in 2004. tencent now saying it is time for an era of healthy growth. ogre ed ludlow joins us now to unpack it all. that is a huge change. -- our ed ludlow. ed: tencent is a social media company. the gaming environment in china very hard. the reality is tencent is saying, "we can no longer basically fund losses through the capital market to drive that high rate of growth." just look at that chart on your

screen. they are kind of acknowledging that in the environment the chinese government have put in place, there is a new normal which is one they play ball in. it will help the company be more stable, have stable, healthy growth, as you put it, but is sure to stabilize markets, too. emily: what comes next? could other companies say they are also in for healthy growth? ed: yeah, alibaba was the first of the big tech giants to say they agree with the decision of the chinese government in cracking down. tencent all of, too. tencent talked about working much more closely with the government. for example, one bright spot is its fintech arm. they are talking about potentially having a separate financial holding company, about working closer with the chinese government. the other part is the outlook. the chinese government has changed its tune of late and

been signaling they will be more supportive as it cracks down -- as this crackdown on tech companies that has been going for years could ease. they talked about working closely with the government on gaming, for example, where there is a pipeline of games ready to go, but they have not been able to bring them to market because of licensing holds. it is a kind of "i'll play ball with the government" game in the best interests of future growth. emily: thank you. that does it for this addition of "bloomberg technology." join us tomorrow to talk all things disney. don't forget to check out our new podcast. you can find it on the terminal, of course, and with apple, spotify, i heart, and wherever you get your podcast. i'm emily chang in san francisco. this is bloomberg. ♪

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haidi: good morning, we are counting down to the major market open. >> the top stories this hour, u.s. stocks fall while record losses after bearing the brunt for the first central bank action on inflation. haidi: gas prices