♪ >> in silicon valley and beyond, this is bloomberg technology with emily chang. ♪ emily: i am emily chang and this is bloomberg technology. in the next hour, president biden in poland at the center of ukraine's refugee crisis as russia's military focuses on taking full control of the donbass region but falters in cap.

we look at the continuing fallout on the war from cyberspace to outer space. apple rolling it out, and additional bonus to key engineers, upwards of $200,000. how to keep staff loyal as the post-pandemic war for talent ramps up. more on that. instacart trying to lure employees by taking an unexpectedly lower valuation, slashing its own valuation by almost 40%, from 39% to 24% billion -- $39 billion to $24 billion. we discuss another bloomberg's group in a moment but let's get a look at the markets. tech stocks and the week down. ed ludlow is here with the latest and it is not all bad news. ed: flat on a friday but we saw a lay comeback from the nasdaq 100, tech heavy indexes. you see wti above $110 a barrel, higher -- $113 a barrel.

u.s. 10 year yield at 2.47%. we have some sustained mental in tech stocks. the nasdaq 100 had its first back-to-back weekly gain since the beginning of february, despite the backdrop of higher yields. higher yields has impacted tech stocks with higher multiples. there is concern that it discounts the present value of future profits. big tech names on the move elsewhere this friday. looking at meda, parent company of facebook. the u.s. and eu have reached a deal on the flow of data between the two continents. the company expressed concern that it continues below, with spotify ending its ad platform in russia as well. emily: i want to move to our top story. talks between russia and ukraine are making no progress according to a top aide to the ukrainian

president. president biden made progress with key leaders on a plan to wean europe of russian oil and tighten sanctions. the president visiting troops near poland's ukrainian border as the war enters its second month. bloomberg's -- from the ground in poland is joining us now. you have been near the polish border since the beginning of the work. talk to us about how the refugee crisis you are seeing is evolving. aggie: when i first came here several weeks ago, the waiting times for people trying to cross the border was 60 hours. in winter, that can be a risk to people's lives. that was a real concern. authorities on both sides of the borders. we have seen the price of getting people over the border is coupled with the fact that there are fewer people crossing the border now than there were a couple of weeks ago. when i speak to volunteers on the ground, a lot of them think

that a lot of the people who have already crossed the border are already going to do so, and then the ones who remain in ukraine are choosing to be closer to their families. emily: president biden's visit to the polish border, is any of this changing how he feels, how the u.s. will respond to russia? aggi: to be honest, there is an immediate effect on biden's visit. the day before he arrives here in poland, the white house announced the u.s.a. would take in 100,000 ukrainian refugees. that pales in comparison to the 2 million that poland has taken in. that is a significant step on the part of the united states and coming here is a signal that they are acknowledging in poland

has been pushing for the eu to give greater aid when it comes to financially supporting them throughout the refugee crisis. emily: what is next to the president? where is he off to? aggi: he is heading to warsaw after this, so he is going to meet with more people in warsaw. today, he met with the 82nd airborne and he is going on the capital of poland to have the meetings. a key factor is not just the humanitarian angle but also the security angle. the polish president said in a press conference today with president biden that he saw his country was the front line of the current concerns the nato alliances have when they come to russia's aggression against ukraine. emily: that is aggie contra with

an update from poland. thank you for your reporting from the ground there. cybersecurity defenses around the globe remain boosted after the war in ukraine persists. joining us now is the chief cyber threat officer, detecting the latest round of cyberattacks targeting various ukrainian organizations. talk to us about the latest salvo. what a significance about the tactics you are seeing from the russians. tony: the cyberattacks were data wipers. we are already familiar, whether you can get it back if you pay. these are just malicious pieces of code that do what they say. they want the data so it can no longer be recovered in any way so it is malicious. what is interesting about these is there was intent here because some f th--of them in the end of

next year -- last year have been there for some time, prior to actually being implemented. we don't know how they got there but we know they have been there for some time. unleashed to coincide with russia's attack on the ukraine. we can't attribute where these came from or who wrote these into the code, but yes, they are causing damage. emily: you have detected a couple of other attacks recently but there is a lingering question of why we are not seeing more and more devastating cyberattacks from russia. why is that? tony: i have my own opinion here, emily. it could well be that firstly, it is hard to attribute a cyberattack, if somebody launches a cyberattack, anything from this personal or this group, is very difficult and

complex. if all nation-states have the ability to have a cyberattack on each other, it could be we are sitting people -- here looking at the new digital deterrent in the same way we think of a nuclear deterrent, and hopefully stops everybody using that. maybe that is the case we are sitting with digital deterrent, that each side knows they both have access to tools that could be untold damage in societies all over the world, and merely withstanding that play out now. emily: how strong do you think cyber defenses are? we have heard these warnings from the biden administration, that companies need to buckle up, boost all their defenses. is it going to work? tony: hopefully. over the last several years, we have seen so many cyberattacks from so much infrastructure in

finance and education, getting attacked by ransomware, so organizations are very well down the path of having the right pieces in place to keep themselves protected. this is just another bunt for cybersecurity teams to say we need to do a little bit more. i think this is not -- we are not starting for scratch and that is my point. one thing that concerns me is if you look at the number of, for e xample, water utility companies, it is 50 barrels of them and many of them are very small and regional. i think they probably lack the skills and resources needed to actually create that cybersecure environment. i'm certainly the one that is very small. emily: all right, well let's

hope that all of these companies/organiz ations/utilities have what they need when it comes to protecting themselves. tony and scum, thank you for giving us an update on cyberspace. instacart slashing its valuation by almost 40%, but saying it's a good thing for employees. we will discuss why next. this is bloomberg. ♪

♪ emily: apple is paying a small number of engineers another round of special spac bonuses, part of a push to retain key talent according to people with knowledge on the matter.

let's bring in mark gurman on another scoop. apple pay has bonuses all the time but this one seems more unusual. why are they doing this? mark: this is a bonus, the second time they are doing this, restricted stock units over four years. right now, inflation is very high. housing prices are increasing per usual. you are seeing a lot of poaching done from amazon, microsoft, and meta/facebook, and apple to build their metaverse. they have their work policy kicking in. apple wants to do everything to retain that key talent so they are giving massive bonuses to people in their car division, software engineering, and hardware engineering, to keep those people in place for the next while. emily: apple is certainly one of those places that has always been a magnet for top talent and they have managed to keep people for years despite the

competition. it is apple facing a bigger challenge with other big tech companies at this moment because of the post-pandemic environment? mark: i think every tech company faces the same issue, right? you have people leaving google and microsoft and amazon and apple and all of these companies, right? they are all completing with different benefits to keep their talent? interestingly, apple is the place you go to, maybe if you are a veteran in your field, if you are the type of person who wants to work on a product that you know it's going to be used by hundreds of millions or billions of people. that is not necessarily the same perk you get by working at maybe meta or google or facebook if we talk about hardware or a unified service. it is enticing for people to work at apple. apple does not always pay as much as competing companies, right? meta is paying more than apple for a number of very similar

positions. apples to apples, right? meta also has a remote work policy, so you can work remotely for as long as you want, whereas apple expects you in the office three days a week. with google, you are expected in the office three days a week. everybody is competing to turn out these products. emily: we will see how that shakes out, apple apples, as you say. as always, thank you. grocery delivery upstart instacart has slashed its valuation by 40%, as the public market declines across the industry. it raised money at a 30 -- $39 billion valuation last year. the new valuation is $24 billion but the company believes new numbers will give new employees more upside. i want to bring jackie davos for more details on this bloomberg scoop. instacart is voluntary --

voluntarily lowering its valuation, fairly unprecedented but when you look at companies like doordash where we see massive declines, shop five where we see massive declines, they say this just makes sense. give us more context on why they are doing it. jackie: you put it perfectly. this is not that unusual for a public company that is already has employees' eyes on her share price. there is so much speculation they could ipo this year but when you look at what is going on in the public market, they took a step back and said there is a bigger issue at play outside of going public. the war for tech talent, exactly what is going on in other companies around silicon valley. what is happening here now is they are going to prioritize these recruitment efforts, new hires, entice them by giving them shares at a lower price and unlocking that upside as the company continues to grow.

emily: as i understand, the ceo explained the reasoning at an all hands meeting at the company today. instacart also released this statement, saying we are confident in the strength of our business but not a view to the market turbulence that has impacted technology companies public and private. we cannot control the market but we can control how we respond. how do you think employees, jackie, are going to respond to this? i mean, it is one thing if you come into a company at a $39 billion valuation and a different thing when you could find out the next day it is worth $24 billion instead. jackie: it is a delicate balance and they are taking a look at what it is going to take to get to the next level, to achieve the next phase of growth, and they will need people to get their. absolutely. for longtime employees and even the employees of caper, acquired

companies, earlier in october, those employees will only see a 40% less from where the purchase price was, so there are going to be winners and losers, but this is about the long-term play. here, instacart is saying we want to be a real player in this search for talent and they will accomplish it but you have to think about what this means for investors. they came in at a $39 billion valuation. this time last year, they poured in $265 million. heavyweights like sequoia. there are going to be those that do not benefit from this type of move but overall, the long-term play is they will have the talent to take them to the next level. emily: brad stone will sit down with the ceo of instacart next week. i am sure this will be on the hot top of his agenda to talk

about highlights in the conversation. jackie davos, thank you. nvidia eying a deal with one of the biggest rivals it has and that is intel. how the competitors could be looking to collaborate to end the chip crisis. that is next. this is bloomberg. ♪

>> after returning to computer monitor making, apple should go back to another market -- home wi-fi routers. five years ago, apple's mac business was a mess. the macbook pro dropped key features, the mac pro was a disaster, and updates to the macbook air and mac mini were nowhere found. apple had stopped making routers and monitors. the story could day could not be more different.

battery life and ascetics and apple external monitors are back on sale. next up should be routers. turn back the clock to 1999 and apple was one of the first major proponents of wi-fi, watching an airport station excessive rate that led users to plug in ethernet to get their entire home wireless internet. over time, apple launched several variations like the high-end airport express and the time capsule for wirelessly backing up data. in 2018, apple discontinued its routers without giving any explanation, ceding the market to competitors like aero and others. apple should return to making privacy focus, well-designed, and well integrated routers for its ecosystem. it should be mesh, including multiple pieces to expand wireless internet across an entire home. apple could jam those routers into a mini, taking a page out

of netflix's book and creating a product that competes nicely with google and amazon. i am mark gurman. ♪ emily: you can subscribe to his weekly newsletter at bloomberg.com. let's get an update on the world of chips with nvidia, one of the world's biggest chipmakers saying this week it is considering having its main rival intel manufacturer those chips. let's get more on this with who covers the chip industry for us. why would nvidia decide to use intel as its foundry. guest: it is important to put these are marks -- remarks in context. the ceo saying we are not looking into new --any new suppliers, having as many as we can get makes sense. intel, if they can back -- get back to leading edge and the

best production, best performance, we will definitely look at them. emily: what is the next step here? what is going to get intel over the line or nvidia over the line? guest: the other side is he makes positive complementary remarks about intel and says this is the right thing to do, and then says by the way, it is going to be really difficult to get there. they have to change the whole culture and he starts on this list of comparisons unfavorably with tsmc and samsung. he says how good they are. the bottom line is it will take a long time he said. emily: yesterday, breaking news about the ipo in looking at a $60 billion valuation, that deal that nvidia could not close. $60 billion seems high, does it not? ian: if you compare it to the

semi conductor multiples, it is $10 billion to $20 billion, but if you look at it from the price of what the nvidia transaction has become, given the appreciation, what we are being told is it is time to set a floor in people's minds. this is a really pervasive company, way more than just a chip company. emily: this arm ipo is more than just a traditional one. it is complicated. ian: one of the most important companies in the semi conductor industry will be the largest ipo to be affected and as we said,

tapping the banks and saying if you want to underwrite this ipo, you will have to loan us money. it is attaching multiple billions of dollars, an interesting way to do things and have potentially positive liquidity. emily: thank you for the updates and all the news this week. coming up, right everyone seems to be searching for ev's on google this month. could the war on ukraine and rising gas prices be an inflection point for the world's transition to electric cars? more on that next. uncertain times as the war on ukraine and inflation rattles worldwide markets. this is bloomberg. ♪

emily: welcome back. i am emily chang and want to talk about what is going viral now. gas prices surge with swarms of people taking to google to search all things ev. how much does it cost to charge an electric car? searches for the phrase were up 400%ng to google trends. ed ludlow is here with white. we always felt the pain at the pump and it hurts. could all the searching get a

big momentum shift for ev? ian: that is what everyone has talked about. now was a good time to own ev. you look at the relative cost of running a car on gas versus running on electricity and the gas is wider in terms of cost of ownership. plugging in and charging has been more cost-effective. people taken to dougal --people have taken to google and other secondhand car websites thinking, where can i get one as soon as possible? emily: celebrities, tweeting from iced tea --there was a tweet from ice-t who got a lot of attention. ed: he makes this joke that he is at the back -- gas station and he has been robbed. he gets to the end of the tweet and you realize he is talking literally about the price of gas , not that he is literally getting physically robbed filling up. emily: pump number nine was the

culprit. it has one million likes. there was elon musk dancing in europe. how do we know this has to do with gas prices and not enjoying iran's dancing moves? ed: this is the other point, that all these people decided they are so bad at the gas pump, they are talking on twitter that they want and ev and musk is dancing in berlin because they are opening a new factory to ramp up production there. look how happy he is. the picture makes a bigger point. there is all this potential in the world right now. ev makers are coming online. the point is those things are exciting and are not here right now. it is hard to get hold of an electric vehicle. there was one being built in fremont and europe and wait times are so long so yeah, things are tough right now at the gas pump.

they are not certain about the futures for ev's but getting your hands on one is difficult. emily: does elon have moves? what do you think? ed: i decline to answer that one. emily: the palling of the drone was the best. ed, thank you. with the war on ukraine still raging along with inflation, investors and companies around the world -- how long will it last? what is a path forward? talking about this more with mercedes. how are you assessing what the impact of this will be? we see what is happening in the public markets but what about private markets? mercedes: thank you so much for having me. for private markets, we have noticed at later stages, it is being affected -- and now, there core is really dying down. that meant people are much more wary.

private companies with comparables maybe raising the 10 acts or 100 x revenues but when you see that same company with a similar business model in the public market trading at three x or six x, you ask yourself, what is the possibility for the company that wants to go public anytime soon? should i pay that multiple? that is happening on the growth side but on the early-stage side, we are seeing a lot of activity that does not seem entirely effective so i think early-stage in talking about those, that has been business as usual. emily: we saw instacart slash its valuation by 40% from $39 billion to $24 billion. what do you make of that and will we see more companies doing this? mercedes: i think we will continue to see more companies

who are having to reassess the dollar amount, what the revenue is worth and think through whether the prospects for the next 12 months are the same. we certainly are thinking about it across our entire portfolio and being much more crossers -- cautious about our valuation. emily: we spoke earlier with the chief economist at city, talking about inflation, andrew hollingsworth. take a listen to what he had to say. andrew: this is not four to 5% inflation. it is around 8% and set to pick up closer to 9% in the next month. that will be such a change in expectations. it is an inflation fighting mode and when you were there, you need to get rates to a level that provides strain on the economy. emily: this will impact

companies on all fronts. how are you telling them to manage this? mercedes: we are telling our companies at the early-stage to think about how they are building their models in a much more sustainable way. we might be entering the bear market. they needed to have a plan for how they are going to support themselves with the funding they have and rely on funding for the next 18 to 24 months. we have a number of businesses affected by the prospective so we have worked with them over the last few quarters and years. it this phenomenon has been going on for a long time. ensuring they are getting their demands forecasted further ahead so they don't have to be as reactive to short-term supply chain fluctuation. emily: thank you for giving us

your perspective on all of this. volatility also still the name of the game in crypto. we will talk about it all in our crypto segment, which is next. this is bloomberg.

emily: ethereum is

outperforming bitcoin for a second week. let's talk about it all with sonali basak. sonali: we should first look at bitcoin because it was a 15% rise in bitcoin over two weeks. it is over $44,000. significant let in the last couple of days. to your point, you are right. it is not rising as fast as ethereum over the last two weeks. you see it up more than 20% in the price over two weeks. people seem to be very -- getting very excited about the merge, but it will be interesting. ethereum has a lower base so the percentage rises are easier to feel what the market cap is still very wide between the two cryptocurrencies. emily: a long way for ethereum to go.

we will talk about this and more with our next guest, head of institutional coverage at falcon next. what do you make of ethereum's latest run? does it have to do with the merge or something more? guest: she hit the nail on the head. i think right now, we are seeing two things in the market. the first is bullish activity fueled by the news that they were planning on purchasing $3 billion worth of bitcoin for their treasury. seeing a lot of hedge and retail investors and aggregators taking profit share off bitcoin and transferring that into altcoins, into the merge, and the excitement around that. emily: what more heat do you have beyond -- behind heat when you see the money moving over and what more will more all kinds -- altccoins have to run

here with all the excitement behind it? guest: a lot of it has to do with the growth of the applications being filled on top of these. whether it is a theory him or you see that happening on top of layer one, avalanche and sweep and interoperability have been bridging bitcoin into these different players, being able to use that store value asset as collateral for usage on platforms in addition to overall more protocols and projects working on these travels and tackling that to make defi more acceptable are -- accessible are more exciting for the application. emily: we see bitcoin trade within this narrow range. it has been happening two months now. why is that, given all the activity? aya: a lot of it has to do with the fact that bitcoin is now adopted by institutions. we are seeing that volatility

drop, which means the mass adoption we are seeing in the conversations wth institutions across the board. you see bitcoin trade similar to the assets in traditional fina nce. in general, there is more liquidity in the market and you are seeing bitcoin and ht ep-- the price therein driven by institutions as opposed to crypto-native volatility traders. emily: it has gotten a good lift the last couple of weeks, proving itself in some ways, but what will give bitcoin another leg and make more institutions comfortable with the cryptoc urrency? sonali: -- aya: there are a number of institutions going through due diligence with applying bitcoin, onto their balance sheet or into investment pieces. we do not have one from -- 100% of institutions in crypto, so we are darting and continuing to see that trickle into institu tions looking for a store value

asset and also more returns across their portfolios today. emily: falconx has big ambitions to get the next billion crypto users on board. it marked 150 million dollars for acquisitions globally. talk to us about your expansion plan. aya: we are really excited about the talent we have brought on to our team. they are excited about gillotti and john kaplan coming to us from bloomberg and pinterest and having that caliber of talent joining us was a vision. of a tokenized feature. emily: you mentioned before the preference for funds to get into ether. as you grow, how much is energy consumption a topic as you go along? aya: dst is top of mind and to the earlier point you made, the transition from proof of work to

proof of stake will be very important to the adoption that institutions view for thereum. emily: how are you watching the war on ukraine as it plays out? we have seen bitcoin be used for humanitarian efforts. we have seen the executive order from president biden. there are also remaining concerns about russians specifically using cryptocurrency for illicit things, by preventing sanctions. how does this continue to play out? aya: specific to ukraine, what we have seen in the effort for ukraine, whether it is in ukraine itself or more global, ukrainian project, it is really just a validation the cryptocurrency is adopted any interests, we are seeing that real-time value in action across the currency system and more broadly, in terms of how it looks for all of the players in

the ecosystem, we are continuing business as usual with the continued -- that we have across the board, which is also super important about the underlying blockchain and usability can be traceable and trackable. emily: there is a question going on about whether bitcoin can replace traditional currencies, what function it has for ukrainians using it to convert their money or to raise money via entities or a him or otherwise. when you're talking to institutions, do they see it becoming a replacement? aya: that is a great question. today, institutions are not viewing these major cryptocurrency assets as replacements. more so as something that goes alongside. really where the focus is is around stablecoins and that widespread adoption in the way it is being adopted overall across all of the institutions using it today. emily: always great to have you

here. thank you, along with should ali -- sonali. the space race of the 21st century. russia remains a key leader in numerous base technologies. with the war on ukraine, a new era may be flight. that is next. this is bloomberg. ♪

♪ emily: the war in ukraine is not just changing the game in cyberspace but outer space as well. satellite companies that rely on russians rocket to get to europe are looking for a new bride amid sanctions and russia heading off . u.s. launch providers use russian built rog 180 engines. cosmos is facing competition not

just from the likes of spacex but also startups focused on rocket engines. ursa major, whose founder and ceo joins us now along ed ludlow. thank you for joining us. what is happening in outer space since the war on ukraine started. we are seeing big shifts in the center of gravity for space technology. guest: you touched on two of the big headlines. there is the lack of launch for western players and famously in the last couple of weeks, it has been forced to buy launches -- that is one piece of the story. the most common question i get on that piece of news is the u.s. was buying russian rocket

engines and that always surprises folks. >> is a surprise given the political tensions and folks forget that before spacex, there was not a lot of option. this must be good news for you. is your phone ringing quite a lot to ask about the readiness? joe: the international piece of this has been extremely busy. the u.s. government has been extremely busy. the commercial side has been impacted as well. spacex is doing a tremendous job filling their manifest with satellite operators. the entire world has gone from a position of, is the launch market oversaturated, to why are they buying launches from a competitor? i think we will continue to stay busy. luckily, it is shining a light on the propulsion industrial base globally and how companies like ursa major can come to help out commercial entrants and

the u.s. government. emily: how was ursa major different from spacex or blue origin or what the russians have to offer? joe: we are different from the russians in that we are entirely domestic so we can provide russian -- rocket engines to the u.s. government and players as it suits them. as far as our business model and how we differentiate from spacex and blue origin, we are propulsion-focused, designing our engine to meet needs from space launch on orbit to hypersonic testing in the case of some of our customers. there is a technological advantage in which the engines are designed for a wide range of applications and diverse capability but there is also an economic side in which we have a production line we just got rolling from this year so there is economies of scale for us delivering the same engine to multiple customers. ed: let's talk about the

production line. i listened to elon musk talk about how spacex is building a raptor engine a day but of course, spacex does not sell their engines to anyone else. what kind of pace of production have you guys got in and how quickly and how do you build these things? 3d printing, right? ed: one-a-day is a perk -- -- joe: one-a-day is a tremendous pace. we hope to deliver by the end of this year but the focus is shifting us from a capacity perspective of how many engines per year to a rates, like an engine a date. we like to be at two engines a week in the not-too-distant future. the ramping there is really limited by how quickly we can assemble the engines. you touched on 3d printing. almost every part of these engines that is a primary component is 3d printed. we hand assemble them in colorado and test them 100 yards from their assembly. i'm sitting not too far from

where we fire a rocket engines. emily: there is another part of the story, hypersonic weapons. the u.s. is concerned russia has used them against ukraine, but the u.s. is behind russia and china in hypersonic weapons and the government is calling on companies like you to help change them. talk to us about why this is important. joe: that is the other side of the coin of the story here. we just saw russia claim they used the first hypersonic weapon in warfare. the u.s. has been developing hypersonic capabilities for many years now. while we have seen the last couple of years is a resurgence of focus on flights testing hypersonic. they are capable of using -- and they are capable of deep throttle or multiple restarts so we can simulate flight across are pretty wide range of missions and that is important

for the next phase of development because the u.s. will be forced to develop not just new hypersonic vehicles but new technologies and capabilities. ed: how much money are you guys going to make this year? joe: it is hard to say. the year is early but we are excited to be -- see i have a focus from the project for dod recently approved for hypersonic testing and spaceflights are nice tailwinds for us. emily: what you're doing and what is happening in outer space, ursa major, founder and ceo, joe lori and c and ed ludlow. thank you both. that does it for this edition of bloomberg technology. join us next week for our conversation with brad stone, sitting down with the instacart ceo at the conference in las vegas along with doordash as president christopher payne. i will speak with uber's ceo next week, joining you live from

shop talk. do not forget to tune in for a lot of interesting convresations. i'm emily chang in san francisco. do not forget to check out our podcast. this is bloomberg. ♪

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emily: the markets get the message about tightening finally. ukraine stalls the mighty muster military -- russian military and a black woman takes a step toward the supreme court. this is wall street week. i am david westin. special contributor larry summers on being caught between a rock and inflation and a hard place of recession. larry: i share the chairman's hope that a soft landing as possible, but i do not think it is something to count on. david: bank of america on corporate america coming to terms with zero omissions in a time of war. >>