>> 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. this is lumbar technology. president biden arrives in brussels.

new details on the hacking group behind the bridge. even as they managed to infiltrate so many large-scale tech companies. and moderna says is covid vaccine produced a strong immune response in kids under age six. but it is only modestly effective against omicron. more on that later this hour. we will get to all of this in a moment but u.s. stocks declining and the s&p 500 falling for just the second time in seven sessions. ed ludlow has more on the market today. >> there is a lack of consistency at least in the terms of the equity markets. this is a very technology heavy index. john 1.5%. all of this after a pretty significant gain. you can see that here. that is where we see the yields on the treasury easing. you can to the benchmark 10 year

yield down about nine basis points. there is a real concern as it relates to the conflict in ukraine about ongoing disruption. we see a pretty big market reaction on wednesday. we see that the competitions are creeping in. also really interesting, we will talk about this later on in the show, chinese companies listed in the u.s.. it recorded single-digit growth for the first time since listing

in 2004. they have basically said the era of hard and fast growth is over. we will comply with this chinese crackdown. other chinese tech companies are much better. you look at the golden dragon index over the last seven sessions, it is up 50%. from a 2013 low. we are seeing this in china. perhaps authorities could have been more supportive, especially in light of a big market decline in chinese tech companies and finally you talked about it at the top of the show. i am not really sure what happened. the stock falls 10% on wednesday. that is the biggest drop since november of 2018. that is a significant decline. the only real news of the last 12 hours is the company coming out and saying early 2.5% of its customer base were impacted by this potential breach. but a really severe drought.

you can see that after what we saw as muted on tuesday. >> it has been slow and conflicted reporting on what happened there. we will talk about that a bit more later in the show. president biden now in brussels. set meet with european leaders. the goal to show that the world is united against russia's invasion of ukraine. jodi schneider with us now. what are we expecting from this trip? >> several main messages to look for from president biden now that he has in brussels. one will be unity. nato and the european allies and the u.s. and the u.k. are united in the denunciation of vladimir putin and his invasion of ukraine. they are doing what they can to try to stop it from going any further and to stop him from any

gains he can make the anti-punishment for this. biden also wants to show solidarity with european countries who are taking in millions of refugees from ukraine. more than 3.3 million ukrainians have left their country. more than 10 million have left their homes. obviously some staying in ukraine but they have had to leave their homes and their communities. president biden wants to make that clear. that the u.s. supports and empathizes with what will be a growing refugee crisis. certainly he wants to make the case for more sanctions. the u.s. has had the toughest section on oil because the u.s. imports the least amount of crude oil and petroleum products from russia. the european countries are in a much different situation but the u.s. wants to push them to do more on sanctions. those will be the three messages you can look for from the u.s.

president. >> how could we see the u.s. a up sanctions and put pressure on europe to step up sanctions? >> the u.s. has already gone one way toward sanctioning both the oligarchs in russia and they have done things like ban the imports of russian oil or russian crude oil to the u.s.. they are taking more steps and the national security advisor, jake sullivan said today that president biden said they will be announcing even more sanctions against oligarchs as well as companies and other entities. 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 more accusations made against russia.

president biden here. all of this before he got on air force one. he said he would not be surprised if vladimir putin would used chemical weapons in ukraine. there would be a lot of warning as well as talk about sanctions. >> thank you for that update. we will continue to follow the trip in europe. instacart is launching a platform to sell to supermarkets. a move that cements the company possible turn into enterprise services. this is making multiple moves to strengthen this. coming up, they claim to have hacked some of the biggest names in tech. we have the biggest name and how

they have managed to breach so many large-scale tech companies despite being described a certain way. this is bloomberg. ♪

quite the latest on the evolving -- >> the latest on the breach. the group behind the bridge because it self lapses and bloomberg reports it has a murky background. for more and i am joined by jack. talk to us about what we learned. we heard laughable and murky.

>> this is a group that has risen up in the last year. they have made bigger splashes. they actually use it to brag about what they have been able to hack. they are an interesting group. we normally think of people who take our data and encrypted -- encrypt it and offered to unlock it for us if we get them some sort of money. these people just release the data. just like a broken clock is right twice a day, idiots can do amazing things. they released some source code of being.

-- bing. they may not be nationstate hackers but even the right tools and opportunities, they could be pretty dangerous. >> they hit chris out. and also, this octave breach. the company is self says they were not breached. 366 customers were compromised. how serious is this and what does it actually mean? >> this is an identity management that form. that is just having a central place where you can log in. you just have to put in your credentials to get access to all sorts of things. it is just a way to get into a company web portal.

it is only 2.5%. while we need to be careful and appreciate the investigation is ongoing, the details are slowly coming out and we are understanding them but the worst case scenario is these attackers could get access through these victims networks. if they could get into this, they could pull out all stork -- all sorts of data. >> it does sound pretty serious indeed. does this mean this has no relation to potential russian cyber attacks or the chaos going on in cyberspace right now? >> it might not be but we also

need to realize and this is to follow-up on the repeated one is that russia is looking for opportunities to access major companies. we saw ed newberger who made a very public plea about companies updating. you might have others group of people who are trying to integrate companies and still their data but these things are not mutually exclusive. they have this persistent threat of russian nationstates and companies need to do more in order to keep themselves and their customers safe. >> thank you for the additional details. i want to continue this conversation. this is the former ceo of the

national cybersecurity center. the managing director at paladin capital. thank you for joining us. so far it seems we have seen a dearth of cyber attacks from russian would-be attackers since the war has started. would you agree? >> thank you for having me on. that is the sort of thing we have seen from russia before against ukraine. i think a lot of people will be expected to have a serious intensification of that. why might that be? the russian cyber hackers might

not be told. there has been a bombing squad over a city. this actually takes a very long time to plan. maybe they were not ready. also, when you are blowing something up, it is easier than doing this sophisticated attack. i think this sort of thing has not happened yet but i think the president was not route -- was not right to sound the alarm. >> how serious would you say the threat is for russian cyber attacks. if these cyber attacks do happen, how damaging could they be?

click this life is completely blown apart. that is not realistic, it is extremely hard to do at scale. obviously, if you are in ukraine, you are in fear of your life. they have worse things to worry about that computer hackers. if you are looking at the risk to the west, we spoke earlier about the criminal attacks. a lot of them happen for russia. they don't need to do this elite heck power grid. these are hacked colonial pipeline systems.

another bunch of russian criminals who pledged support. this caused huge delays. where these attacks to happen, this could be disrupted. not fatal like a military operation. >> what kind of counterattacks are being waged by the united states and others around the world at this moment? " occasionally some operations get declassified. i think if you look at it, let's take that operation against average health care.

would we disrupt the civilian health care system in russia? it is technically possible but are we going to do things for russian civilians that we are not prepared to do in the physical world? some of the activists have been doing things like disrupting a bit of media. that has some tactical effect but it is hard to see what kind of strategic effect we have. we have these highly digitized vulnerable societies that are more digitally advanced than most of the russian civilian life. it is not really a case of fighting cyber with cyber. the ukrainians, that is our way of pushing back. probably more than using cyber capabilities. >> we are getting some headlines on the group that we believe hacked earlier this year. that a teenager is suspected by cyber researchers of being the mastermind behind this operation. a teenager that still lives with his mom in england.

what is your take on what happens with them and if it has any ties to the chaos going on in cyberspace as a result of the war? >> who knows? there is no evidence of any connections of the war. let's not jump to conclusions. it is a reminder that people can cause chaos even if they are not connected. even if some of their methods were laughable. >> we really appreciate your expertise on this. leaders across industries talking about concrete ways to improve equity and business. we will talk about the company's

decision to suspend operations in russia. this is bloomberg. ♪

>> al kelly weighed in on the difficult decision to suspend operations in russia. he talked about how they are helping their employees in ukraine and russia. >> we have employees in both ukraine and russia so this is -- russia's number one goal was to get as many people to safety who wanted to be. the reality is we have about 60 families. we took care of children, in some cases mothers and fathers where we did send vance through a couple of different security

companies. almost all of our global security people are either in hungary or poland right now. we extracted people when we could. it is getting harder and harder to do. we have about a dozen people left in kyiv. most of our employees are scattered along the western coast. hoping to stay. hoping to not have to break up their families. when i was in poland, that is when the base 12 kilometers from the polish border was bombed and one of our employees husbands had been facetiming with him every day and she went like half a day or three quarters of a day without hearing from him and right before i left, left poland to head to the by, she grabbed me and told me she had gotten a text from him that he was alive. that is good news.

it shows the impact. we are equally committed to our russian employees. we ended up shutting down or suspending or 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 and 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 for the sake of everybody that an orderly line down where we were not forced into it by another round of sanctions that might say we immediately have to shut down in the best interest of everybody. we subsequently made available to our russian employees the ability to relocate. if they did relocate, we would give them a job. we had a town hall with them on

a sunday morning and by that wednesday, 70 of them and their families had already moved to dubai. today i believe -- last i knew we were somewhere in the neighborhood of 120 employees and families had migrated to russia. we will see what happens. a lot of these people are hopeful they will get back in weeks. i am not sure that will be the case. i think this will be a prolonged battle. i think putin underestimated the will and the skill of the ukrainian people. >> that was al kelly there. instagram will let users switch their feeds so they can view the most recent post first. this after years of complaints about the photo app ranking system that posts on user behavior. and saying they want people to feel good about the time they spend there, giving them tools to shape their own experience.

coming up, progress on moderna vaccine for kids under six but not so much against omicron. we will talk about the rise of health tech in the pandemic next. this is bloomb ♪ as a small business owner,

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>> welcome back to bloomberg technology. moderna says is covid-19 vaccine produced a strong immune response in children under age six. initial results from a large final stage trial but it showed only modest effectiveness in reducing omicron infection. they will submit this data to regulators in the u.s. and overseas as soon as possible. i want to get more on this with drew armstrong. what are we supposed to make of this efficacy data and why has it been so hard to get this vaccine ready for kids five and

under? >> it is a good question. we do see this modest efficacy. i think it is 43% for kids six months-two years. 37.5% for kids 2-5. that is so so. that is below the prior stated threshold. i think there are a couple of pieces that dig deep into this. one is the antibody response that is the immune system possible initial line of defense. it looks similar to what you see in adults. that is good. in terms of severe outcomes, hospitalizations, debts, it is inconclusive. that is partially because those types of bad outcomes are so rare in kids. luckily that you would actually have to have a truly huge trial to be able to measure them. if they did 6700 children in this and saw none of those severe events in either group,

it is really hard to get the data when you're looking for events that are that rare. >> visors vaccine for kids also has had some effectiveness problems. is there something about their young children that has made this more difficult or has it not been as high a priority? >> you look at the hospitalization rates for younger children around one in 100,000 of the population at any given time. that is substantially less than adults. about a 20th the rate of adults. this comes down to it seems to be less about the actual vaccine itself and more of the statistics problem where to get a result out of this, pfizer or moderna need some meaningful number of kids to get sick enough to be hospitalized in your placebo and then none in the vaccine. because those events are so

rare, because you are doing this with only a few thousand kids, it becomes really hard to detect those in a way that were statistically meaningful so you run these trials and you see the antibody response that tells you this looks like it does -- works the same way does as adults and they should be generally true 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 time, it is just really hard to get that and not have it be a statistical anomaly. it is a trial by design stats problem, it does not seem to be as much of a problem with the drugs themselves. it is just really hard to measure. >> thank you for working through the complexities of all of this. kids in that age group are very anxious to see more progress here. thank you drew.

we will continue the conversation and talk about how the pandemic has impacted the health care landscape. i want to bring in my guest. the founder and ceo of her company. they just raised $20 million and that series a was led there. thank you for joining us. i want to talk a little bit about what is done here. you focus on specialty lab test which to be fair often get ignored by traditional doctors, traditional western medicine, they are not covered by insurance. what is the depth -- the gap they are looking to fill here at your company? >> the gap is the type of lab test we give doctors access to. our platform allows doctors to have access to over 3000 different lab tests and when we say that, we are talking about dna testing, or group i am testing, things like that. our broader mission is to make

personalized approaches to medicine acceptable and available to every person on the planet. and we can talk other bit more about the gap and how we were being treated but what is happening on a macro level is this shift toward patients demanding more holistic and personalized care. >> let's talk a little bit more about that. some people are learning the hard way that people need to be their own advocates when it comes to health care. where do you see the health care system and how do you see this as an opportunity to address this? >> thank you for having us on the show. we are really excited to have this because the shifts just described are the ships toward root cause health. there is enormous consumer demand. there has been a lack of accessibility and availability for this sort of testing.

some of which is newer. newer diagnostics and newer types of tests that are emerging. we are just starting to get really great data on them. we are beginning to use them in a personalized and holistic manner. as there is growing demand, there has been a challenge to actually accessing those tests and synthesizing what the data means and how to interpret the diagnoses. that is where we see enormous potential to make the care just normal health care. that every patient and every consumer has access to. >> our needs have evolved dramatically through this pandemic. i am curious for your thoughts about where we are in the pandemic and the decision at this point to live with the virus but keep businesses open even though we are not

necessarily at the final end. is that really the right call? >> that is a tough question. it has been tough or any one person to answer and i think we are seeing that with the broader government and state by state regulation as well. one of the things that has been interesting in our world is actually the continuing epidemic of long covid and how we will be treating that in the day today. many people have actually experienced the disease but they have not been rid of all of the symptoms yet. one struggle i think we will have is how to actually treat all of these people experiencing long covid symptoms. >> how do you think about that? we are kind of in a whole new world. we will be living with an epidemic for potential the years. what does that mean from a health care perspective and how does that influence where you invest?

>> it has an enormous impact on the investment landscape. one of the major changes that has happened has been the adoption and acceleration of at-home testing which plays in really well with a lot of the momentum we see. as well as the availability of telehealth. and making health care more affordable, more accessible and more holistic, taking into account mental health, physical health and these environments is really important. we are starting to see the potential of some of the new technologies and new models of care emerging on display throughout covid. that is what has been super exciting for us and what has been behind a lot of our investments over the past two years. >> all very important. we will keep our eyes on you. coming up, where bitcoin goes

from here. we will be talking 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 for our crypto report. after breaking 40,000 for a bit, bitcoin is not going much higher or lower. staying in that tight range ever since the start of the year. joining us now are our crypto contributors. why isn't it breaking out?

>> that is the big question here. we are back above 42,000. we have not even hit 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. thank you for joining us. what is keeping bitcoin from breaking out this year the way it has last year? >> one of the big things that is very obvious is that the supply demand mechanisms are very well understood. you can actually go ahead and check on the metrics where the supply is. what we are watching is exactly what we saw in 2020 in the summer of 2021 right before the big run up. more and more long-term holders are requiring bitcoin to get off of exchanges. they are not telling what they are mining. they are getting this highly

illiquid supply. regardless of what it is. whether it comes from a macro environment. it could be one of many things. that catalyst will go and unite this underlying market. when that happens is a big question. will it happen in the coming weeks? whenever we get these lows of people taking supply off the market, it is becoming highly illiquid. >> i am kind of curious not just about liquid markets generally. i am curious about the private markets here. you had been tweeting about this, raising $450 million in a speed -- a big seed round. why do you think the private space is garnering so much money? what do you think about the private valuations? >> i think there are two things happening. people have to go to the private

market. the second thing is this is a generational trait. if you want to get asymmetric returns, you have to go and invest. they can invest in the infrastructure and liquid assets. that is when every great investor is doing. the ones sitting up from this market, they are just going to be left behind. this is a perfect example. if you look at the financials, they are mind blowing. these guys are operating with a 92% margin. the company is less than two years old. anybody on the planet would be interested in investing in this type of business with this type of momentum. there are people who point at the industry and laugh because they don't understand it but i do know that the world's wealthiest people. at the future wealthiest, the wealthiest today are crypto investors. i imagine that they will be

dominated by crypto investors. if you want to be part of that, you should get into the industry. course given the prominent role that crypto is playing on the war in ukraine and providing them in his hearing aid along with the executive order, why don't you think bitcoin has broken out in a bigger way? >> bitcoin is up 25% since russia invaded ukraine. ultimately people tend to look at -- it is hard to lose track of what happened in just a matter of weeks but it is up 25 percent. it has outperformed any other as a people would look at in these areas. we just don't look at them trading in that range. i think watching what was -- what has happened in ukraine is a perfect example. crypto investors around the world have raised more. that is more than most countries get to ukraine. when you start to see this, they literally posted a while address on the internet and that is just the donations directly to the government. that does not even include the

ngo's or any of the nongovernment type organizations that also got those donations. when people are waking up to these, bitcoin and cryptocurrencies are good for business and that is true for individuals, corporations, nationstates. whether we are talking about nationstates like el salvador, the united states president says that he was to be a global leader but we are talking about a country that is being invaded by a nuclear armed adversary. if you don't adopt this technology, somebody else will and you will be at a disadvantage. >> to new investors it is really bitcoin, a theory, and everyone else. there are thousands of other cryptocurrencies out there. i speak -- recently spoke with the world's biggest corporate holder of bitcoin as far as we know and asked if we was a massive consolidation in this market, how many cryptocurrencies actually exist five years from now. listen to what he had to say.

>> this is a rotation from an entrepreneurial driven industry to 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 6500 cryptocurrencies are not going to be around here in a decade. close why do you think the crypto currency looks like this in five years? how many actually survive? >> i think he is dead on. anytime you have brand-new technology flowing into an industry like this, you are going to get a lot of people who are experimenting and trying things but most of them don't last. we go back to the late 90's as an example, all of the ideas were right the first iteration, most of them did not work.

it took a decade before the infrastructure was in place. there was the consumer behavior transition. i think the same thing will happen here. the beauty of this is something like bitcoin specifically, this is not the first attempt at this. for over 40 years, the cyberpunk movement has been trying to create digital currency and finally in iteration is now striking and receiving global adoption. the same thing is likely to happen with many of these other ideas. it will just take a while for us to get there. >> you are somebody who has moved to miami. a place where the mayor has been very openly excepting of cryptocurrencies. to what extent are you seeing other cities and states truly adopt cryptocurrencies as a form of payment, a way of accepting taxes and welcoming the community there? >> i think that miami is the shining example of what freedom

and leadership is today. it is the last place in the world where socialism will take hold. what we are watching play out is a resurgence in the fact that leadership does matter. what mayor suarez has done is taken a city that most people did not know existed outside of miami beach and he has revitalized it by putting a flag in the ground and basically promising 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 180 degrees different than most people have been hearing in places like new york city where various cities across california. i think that bitcoin is a big part of that story. it is not the only part of the story. you are watching that politicians are realizing at the local, state and federal level that bitcoin is good for their campaign, good for business. i have had tens of different politicians running for various positions across the political spectrum in the next election

reach out and their leading message is i am pro bitcoin, pro crypto but that is no longer something that makes you stand out. if you are anti-these technologies, you are basically going against tens of millions of americans. you will not get elected. if you are anti-crypto, you will be voted out. i think politicians are looking at this as both a carrot and a stick. it is a stick because if you are anti-these technologies -- >> no room for interpretation there. >> coming up, falling into line, though this company to acquiesce to china's crackdown on technology. that is next. this is bloomberg. ♪

>> $.10, the latest company in china to raise a new paradigm of stricter government oversight. shares of the social media giant dropped after posting single digit sales growth. 10 sent saying it is time for an era of healthy growth. that is a huge change. >> there is a lot going on. 10 sent is a social media company. the reality is that we can no longer basically fund losses through the market and drive that high rate of growth. they are acknowledging that the

chinese government has a new normal. it will actually help the company be more stable. they should help stabilize margins. >> what comes next? could it be other companies? >> alibaba was the third big to say that we agree with them. 10 sent followed suit. 10 sent is talking about this. one bright spot for the business is for intact. they have been known to make acquisitions. this is about getting closer.

they talk about working closely. they have not been able to them to market. this is in the best interest of future growth. >> you wonder what the additional pain points are. that does it for this edition of bloomberg technology. they will talk all things disney as well as spencer bogart. don't forget to check out our new podcast. i am emily chang in san francisco. ♪

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