>> 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, coming up, a bloomberg's group. hackers to masquerade as law enforcement tricked apple and meta into handing over customer data. -- we have credit card in wallet. bloomberg's mark gurman willowbrook -- bring is the exclusive story. tesla's hitting competitive advantage, the electric carmaker made a secret deal to help dodge the nickel crisis. russia is one of the world's top suppliers. we will get to all of that in a moment, stocks falling again as hopes for de-escalation on the war in ukraine fade. ed ludlow is here with the latest. >> from hope around talks and ukrainian officials taking place in turkey and other places, to concerns about supplier, the impact it could have on global commodities markets and global corporate's as well. equities down, technology one of the worst performing sectors in the stock market. you see that in the s&p 500. the main gauge of u.s. equities

higher as oil climbed back above $105 per barrel. west texas intermediate crude and bloomberg commodity index which tracks all kinds of communal -- commodity futures of more than 2%, having fallen more than 2% the last two days. there was a flood of bloomberg's groups and reporting on wednesday. let's start with the metal space, because it does link to ukraine. bloomberg reporting that tesla has an agreement with the brazilian nickel minor for a long-term supply contract. they saw shares of it rise during wednesday session. interesting to see tesla higher at one point but closing down half a percentage point -- .5%. another bloomberg scoop that president biden, according to sources, is considering using the 1950 defense procurement act. that's the same act trump used back in 2020 to bring more

supply online domestically of metals associated with ev battery cell productions. you see lithium miners arising during wednesday session. so much around mega caps. reporting that apple, according to sources, is trying to build out the in-house financial services. we will hear more about that later. stocks closing down 7/10 of one present on wednesday. that mega scoop we are about to touch on, they have masqueraded as law enforcement to make legal requests for customer data and receive it. you can see both stocks down on wednesday. meta did take a leg lower across the bloomberg terminal. emily: now to that bloomberg exclusive. apple and meta provided customer data to the law enforcement officials who were really hackers in disguise. our bloomberg security reporter joins us live with that scoop.

how did the hackers pull this off? >> thanks for having me. here's what the hackers did. they could have exploited with some would call a loophole in the system. when you send a request for a search warrant or subpoena to a company for data, it has to be signed by a judge, what if you send an emergency data request, that's not something that has to be signed by a judge. what these hackers did is they broke into the email boxes of legitimate law enforcement agencies, and they sent emails, posing as a legitimate law enforcement officer, to these companies with a forged data request. the company has complied with the requests, and actually turned over user data. what we don't know is the scale of the problem. we have heard from sources that it's much bigger than these companies, it has a much bigger scope, and that's what we are trying to find out now. emily: is it understandable that apple and meta could have fallen

for this, or is this a major loophole in their system? will: it could not be overstated how complicated and difficult these are. the emergency data request is a very legitimate form for law enforcement to get information in times of crisis, like a terrorist threat or someone's life in imminent danger. that's exactly what the hackers do. in their forged crust they will -- request, they will say something along the lines of there's a threat, someone's life is in danger, there's a suicide. companies are expected to comply quickly with these requests. as it's becoming clear, companies need to have more oversight and verification that the requests are coming from real law enforcement officers. emily: discord had a similar issue, also, snap got this request but we don't know if they provided the information to the hackers. are there other companies that

could be looped into this? will: yesterday, brian recorded that discord, also was a victim of the same thing. we reported that snap received a forged emergency data request but we don't know if they provided data. i'm hearing from sources that many other companies, even beyond tech and social media companies have been affected by this. if anyone knows more, you should reach out to me because i would love to know more. i think this problem extends just beyond the two companies we reported on today. emily: william, thank you. i want to talk more about this with wendy whitmore, senior vice president for unit 42, the intelligence team at palo alto networks. thank you for joining us. what you find most notable about how these hackers were able to pull this off, with massive companies with very established systems? >> emily, great question.

the biggest concern of these attacks is clearly how well the attackers understand the potential vulnerability, this process of government requested technology companies, social media companies, and understand it and are willing to take the risks to exploit it. emily: talk to us about why it's so, apparently, easy to do this. some of the folks behind these attacks, we are finding out, are teenagers. wendi: great question. the interesting thing is it's not easy at all. this is relatively complicated. i would say the easiest part is for the attackers to get access to the data they are stealing. last year alone our team identified over 2500 reaches where there was stolen data leak. they buy the information for relatively inexpensive prices, and then use that to test out which kind of credentials they can use to legitimately break

into an organization. in this case they chose to be the law enforcement organization. the complicated part is they have to understand the process and spend the time that it takes to do the social engineering aspects, understanding specifically who they need to contact at these organizations -- organizations to make the request, who the law enforcement officers are, and what the process is. it's not an easy task for them to orchestrate. clearly being done by people who have time on their hands. emily: the folks suspected in this particular case are minors located in the u.s. and the u.k., i'm reminded of the pack we covered last week where the suspected mastermind as a teenager who still lives with his mom in england. what you make of the fact that these are potentially very young people behind needs very disruptive attacks? wendi: it's incredibly concerning. we typically would see this level of attack orchestrated by

an organization who's got clear objectives and clear financial backing. the point is, the organization related to these attacks certainly has overlap in the activities we have seen last week. one of the things they are doing incredibly effectively, and we see this in ransomware investigations as well, is they use time demand as a way to force an organization to make a quick decision. we see it with the ransomware attack's when there's extortion and we are seeing it work very well with the emergency data requests. emily: now, 600 thousand open jobs in cybersecurity, that's what bloomberg is reporting today, that there are 600,000 jobs in the cyber threat landscape that are unfilled. is that part of the reason we may be seeing an uptick in hacks? wendi: well, i think you are seeing that, so there's no greater example of that today in

the industry than as it relates to russia and ukraine. u.s. government has provided a tremendous amount of recommendations and actions to be taken, but the reality is, it's challenging for organizations across the world to implement them in a timely manner. it's cheaper for the attackers to conduct the attacks and much more costly and time and resource incentive for organizations to defend against them today. so yes, absolutely it's a concern. emily: the information shared with the hackers includes addresses, phone numbers, ip addresses. how damaging could the release of this information be? how could the hackers use it? wendi: i think that there is some concern in terms of people being cyber stocked, being as that translated to physical attacks. when you look at these people that are behind us, often times, they are selling this information for a really inexpensive amount, the

equivalent for 150 u.s. dollars. that could be used in a wide variety of ways. we want to make sure people are protected and that this data doesn't then translate to those type of attacks. law enforcement will be working very closely with these organizations that had released the data to make sure they can protect people emily: what you see as the learning and takeaways? is this a new tactic we will see them start exploiting? wendi: i think it has become widespread. you mentioned okta, microsoft. it's largely in the human to human aspect and as well as the persistence to their ability to figure out once they got inside an organization, how they could get to the data that they needed. the good news on that is that that largely relates to defense

in depth strategies, and best practices that we recommend the organization. it doesn't often mean you have to buy millions of dollars of new technology, it means we have to get back to the bases -- basics, and make sure that we are not asking identity verification questions of our employees, that's information that could easily be found on the internet. we have to focus on security awareness training for organizations and make sure they are well implemented. emily: as the war on ukraine shows no sign of de-escalation, but ukrainian forces in the west have really put a lot of pressure on russian forces, to see russia resorting to more cyberattacks and getting more aggressive in the cyber landscape? because we haven't quite seen potentially devastating attacks from the russian side is somewhere expecting yet. wendi: it's a likely scenario. one thing we know for certain is

the russians have a incredible formidable capability when it comes to cyberattacks in cyber warfare. we are encouraging all of our clients and nonclients to be prepared to make sure that they've got a dockless -- documented incident response plan in place. that they understand what rules and responsibilities their employees have across the board so that if these attacks do occur, there we've got a well orchestrated response plan and we can contain the damage as quickly as possible. emily: wendi whitmore, palo alto network, always appreciate your insight on the incident. take you so much for joining us. coming up, russia is one of the world's largest suppliers of nickel. it is a key component in batteries for electric cars. how tesla dropped a secret deal to keep supplies coming. this is bloomberg. ♪

emily: the stock market has been up and down, catching the attention of the sec, which announced the plan for new disclosure requirement. one company that just went public is sorry the broad fan provider listed on the stock exchange yesterday, the transaction and playing $1.76 billion value. we are joined now by the ceo and cofounder. how did you pull this off in the middle of the market volatility in a war that's casting a great deal of insurgency over the road ahead? >> two or three factors

contributed to it. number one, very supportive coaster base which is critical in this market and climate. and i think the basis for the support including the new investors that came in is really the company's performance. unlike a lot of concept companies in this back land, we are a real company growing rapidly, will -- real revenues, real customers. on a real bottoms up analysis in terms of what the company is going to be doing. so i think the deal basically got done because of those. emily: you have for many years wanted to close the digital divide and democratize access. what's the goal? what unmet needs do you feel like you are feeling? quakes it really depends on geography, but certain areas in

in urban areas, the rule areas the government had subsidy programs that provide activity for economic growth and economic engine and economic engine in health care, education that the pandemic taught us, but there's an affordability problem in urban areas, and affordability ranges from people that are looking for a better product in the television bundle, which is how the cable company selleck, or affordability for folks that could utilize the technology and connectivity, but can't pay, but the government is helping with that with subsidizing with a program called acp or a connectivity plan. in game for us is really core belief the company of what we are doing is a great work in terms of real resource to consumers, taking care of them, elevating the experience, and hopefully, by doing all of these

things we are moving society forward in terms of the economic opportunity and availability for resources to folks that would otherwise be paying too much, or they would not be getting the product that all because they happen to be in a difficult time in their lives. emily: how is this service different from what traditional legacy broadband providers offer ? and is this something that customers really want? >> there are different cohorts of customers that really look for different things. i will give you an example. if you are a gamer you may be interested in latency statistics. work from home and cable broadband will give you a very marginal uplink, and we can offer you several hundred megabits. all of these things is ultimately technology towards personalization, and what people are willing to pay and what they want. and that's the purpose.

it's a highly personalized civil way, which is -- perso way, which is how we started the rates and then go up 50%, 60% the year after. 100-year-old business practices that really don't belong in a modern ecosystem. emily: starry ceo and cofounder, we will keep watching as you continue trading. thank you so much for joining us. we will have more right after this rake -- break. this is bloomberg. ♪

emily: the war on ukraine is raising anxiety across the electric car industry. russia, being the world's biggest producer of nickel, a critical component in ev batteries. sources tell bloomberg tesla has been signing deal to circumvent any supply disruption. i want to bring in our analyst who leads our commodities and energy research at bloomberg's new energy finance. thank you for joining us. according to our reporting, tesla has been scouring the globe since last year for deals on nickel and has struck a deal with a veil, a multi-yield -- yearly supply deal that has nickel coming from canada. what is it that made this deal possible? >> good evening, sanctioning nickel prices that are rising slowly and study before the

russian invasion of ukraine. part of the reason for that was the tight market for class one nickel that's used in production factories. russia was providing almost 70% -- 17% of nickel. stopping production there made an impact on the market. tesla's strategy has been straightforward from last year and was scouring for a nickel around the world. deals last year and another deal this year. but they are trying to secure their supply chain as much as possible. emily: in reality, it's the battery metal supply chain in general that is under pressure. how concerned should governments be in companies be on the electric car market? ashish: absolutely right, there is a lot of pressure in the supply chain around the world.

especially in the absence of long-term net emission policies. we expect demand for batteries to rise almost nine times between now and 2025. so, commodities like lithium, cobalt, mag misa required in large quantities. in the supply of these are parts of the world which are sometimes not that robust in terms of government structures or supply chains. in governments and companies around the world are trying to make matters -- take matters into their own hands and it is essentially creating this around the world. emily: obviously these companies can work to secure extra supplies for lithium and cobalt and nickel. what else can they do beyond that? ashish: i think two or three other interesting things they could do. they can use different factory

chemistries to reduce the dependence to develop metal. for example, tesla has been using more of lithium iron phosphate that requires less nickel even though they have more range of funds. factories hi and mag meese content and less nickel content. they could build a more charging infrastructure. if you build a more charging infrastructure, you need a battery and a lower range. from 2030 onwards you will have a lot of factories, a large volume of factories that will be for recycling and we will probably need to make use of that. emily: thank you for that context, head of commodities and energy research at bloomberg. coming up, uber wants to double down on delivery as other pandemic sweethearts are slashing valuations and preparing for layouts.

we will discuss, next. this is bloomberg. ♪

emily: welcome back to bloomberg technology, i'm emily in san francisco. that's get back to financial markets. microsoft seems to be having a tough time keeping up with the recent rebound in the biggest mega stock. microsoft getting left out, for what reason? ed: we have seen this big rebound. particularly the likes of apple and amazon and we have written a lot and bloomberg news about that in the recent love that investors have had for those tech names amid the uncertainty. microsoft is down half a

percentage point on wednesday and year to date down 7%. this look at where we stand. microsoft clearly trailed it's a mega cap. what's interesting is there might be an issue around the stocks still being quite expensive. before we had that rebound we had a heavy selloff in tech shares because of the outlook for higher rate. but, microsoft still trades at 40 times its estimated earnings. by comparison, the nasdaq 100, a tech could be indexed, trades at 26 times projected future projects or earnings. analysts love microsoft, so why do investors not love microsoft. look at what's covered by wall street. 48 calls, for holds, zero cells. analysts say premium on the stock of the next 12 months. they say -- they see are rising by 18%. strong outlook in the last earnings guidance. pipeline seems to be really good, but not a lot of love.

i don't like to pick on any particular company, we have to tune in and wait and find out. emily: we know you are an equal opportunity pick on her. this week i spoke exclusively with uber ceo about the company's plan to out amazon amazon. take a listen. >> i think that amazon is an incredible company, and no one is ever going to replace amazon, but we could essentially use our technology local logistics capability to empower the local merchant or restaurant to deliver anything within an hour, which we think is a delightful experience. emily: cooper's delivery business could eventually grow to be bigger. the idea being that it doesn't deliver just food, but potentially anything. coming at a time when other delivery services are cutting back. instacart slashing its valuation 40%. in they plan to cut hundreds of

employees. here discusses the general partner at manhattan venture partners. you are an investor in instacart, what you make of instacart's move here? should we be worried about its business? >> overall, we are really not worried. i think generally, this app of actually reducing the valuation is very much so based on the value of the stock options that the company is issuing to their employees today in any incoming employees. we think the move is really smart for the hiring and recruitment of new employees because, generally what employees want to see is the upside in their stock. they want to see that there will be value once they join the company. overall, we think this is a move that made headlines because they were one of the first companies to do it amidst all the volatility in the market, and we just assumed that many and many other companies are going to join suit in this. emily: doesn't mean that anyone

who exercise their shares, that the original valuation would be underwater now? andrea: the folks that did exercise their stock option are probably there to hold on and see where their company goes as per their ipo in the plans there. overall, with the lack of work with -- lack of liquidity leading to the ipo, those employees have to bear with us and hold on, but generally the tax treatment between the 409 a, which is the valuation, the audit valuation that every company who is private has to do once a year, at least. but trina -- between the spread of 409 a and where they sell the stock is meaningful. if we reduced the valuation stock, they could have more upside leading up to what they ultimately sell the stock at. emily: we saw go puff planning to cut hundreds of employees according to a report cutting $40 million in cost, 3% of their

global workforce. do you think we will see more companies slashing their valuations like instacart, and potentially going through these mass layoffs? andrea: yeah, emily. i truly think we are about to see a 180 reverse of the great resignation. i think many companies are using this opportunity of the volatility in the market to reduce topics, increase their margin, get to profitability and show investors private and public, that they can succeed as they grow. so we do think we will see a lot of companies further, even though we are expecting the opposite of the great resignation, we expect the talent pool and recruitment landscape to be just as competitive as it ever was. with that being said, companies need to find compelling ways to recruit and retain. with that, they are going to be looking for ways to show the talent pool that's out there

that they could have an increase in the value of the stock they are getting issued. so, we think there will be a lot more of the layoffs coming out. we expect a lot of companies are having conversations with the board of directors to say what should we do around our valuations, should we bring it down to a real level, and how should we plan ahead for our hiring plans going into the rest of the year? companies like instacart, last year, really focused on profitability and broke even because of that. now companies like instacart are focusing on topline, continuing to focus on growth, and then furthermore, really just focusing on that reduction of spend across the board. profitability is key, margins are key, and retaining talent from the executive level down is also incredibly important. emily: public companies in this space also seeing their stock slide. uber and doordash down here today.

i'm curious what you think of cooper's vision here to be the future of driving retail. the idea that they could deliver something faster, for example, then amazon, and if you think that's going to work? andrea: uber certainly has the capacity to do so, but these days their fleet is suffering. i do think they are going to have to revitalize the way they incentivize the driver base and increase their own margins. it's not like uber has always been the company to prove that they understand how to focus on economics. generally, though they have the fleet in logistics down, it's not fair to say that they have proven themselves in being able to scale the logistics side of the business. overall, they have a fighting chance, but amazon has always been the clear winner in this category, and has invested a lot in this category. but we are looking at where

lubricant sick, but overall, amazon has been the leading category winner here. emily: it -- is it a cautionary tale for investors in employees and prospective employees? we all thought valuations were getting pretty hot towards the end of last year. and now, as you are saying, we will see a lot of companies bring those numbers down. andrea: overall, i think the cautionary tale to see here is that these companies that are raising money from big crossover funds, and when i say crossover, i mean the mutual funds or hedge funds that invest in private and public companies, than they really hold onto those positions once the company goes public. those crossover investors have a war chest of a ton of capital to deploy, and their risk profile is very different than a traditional venture investor or retail investors. what i say to investors is that we have to look out for the late

stage companies raising money, and furthermore, sitting on their own war chest of a balance sheet. those companies raise a lot from those crossover investors who can weather the storm and plan on holding onto those positions in setting up arbitrage opportunities long after the company goes public, which is a very different strategy than i traditional venture investors. their role is primarily to distribute in cash out once a company has a lock up in the lockup expires. i think that tailors measure the risk profile, measure risk tolerance. furthermore, we will always look for companies in the venture community that are increasing their margins and showing that they can become profitable if and when they wanted to be. emily: are you saying that these funds, i will just throw a out there, are they driving up valuations in an unhealthy way?

andrea: i think that overall tiger global and many other businesses operating similar to the crossover space where the ones that have had war chest and our sizable he larger than traditional funds. in the last few years they have proven that they can be very competitive because their strategy is so focused on arbitrage ring opportunities once companies go public. i don't think anything they have been doing from an activities perspective has been predicated of them trying to drive up valuation. they have been very competitive for that reason, but for now it seems like groups are very much still focused on making sure that they sit back, fewer things pan out, and they are not as focused on driving out valuations or putting their best in the markets in recent days. emily: general partner at manhattan venture partners,

it'll be great to see if some of the stuff you have predicted comes true. emily: the future of decentralized wireless. we will talk with novo labs about their recent $200 million labs and how they plan to expand their crypto wireless network. that is next. this is bloomberg. ♪

emily: the creator of a blockchain that powers a decentralized wireless network just announced the $200 million raise in funding led by packer mobile. valuing them at $1.2 billion. helium also changing its name to noble lab. i want to bring in the ceo for more on all of this is part of our crypto reports. walk us through how crypto wireless network actually works. >> the easiest way to think about what helium does is it empowers ordinary people, everyday people to end -- to participate in the telecom business. this is the most entrenched industry almost impossible for a regular person to participate in. helium is pioneered for the ability to bring everyday people to part of the telecom business with the decentralization of crypto. everyday participants by a

hotspot. you can think of it as a miniature cell tower in the hearing tokens for providing network coverage that other people can use. that's what it essentially is. emily: what are some of your first use cases and customers? the net work today is focused on sectors small devices that are battery-powered. we see everything from drone deliveries, packages being delivered by drones working through the helium network, precision and agriculture, wildfire monitoring. the numbers are extremely broad and the categories have really lacked a network that supports a kind of applications that we are now seeing. we are starting to see the transformation of an idea that goes to the reality of deploying sensors that solve real problems. emily: is the go or take share

from major wireless carriers, and how do you plan to do that? >> i think the goal really is to try to build an alternative to what we have today. if internet/access -- access to the internet has been difficult to separate from a small constituent of companies. it's incredibly difficult to decentralize that way due to the spectrum of different classes. what we see now is the convergence of all these different technologies that make it possible now for us to provide an alternative that is completely private and secure and owned by the people rather than a small group of companies. emily: given your fundraising announcement today, $200 million, including from tiger global, we were just having a

conversation earlier at manhattan venture partners who maintains that some of these bigger funds like tiger global are driving up valuations because they simply have so much money to plow into startups. what do you make of that critique, and do you think it applies to nova? amir: if you look at the telecom industries, it's one of the few industries valued in the trillions of dollars. the opportunity here is so large that i think it's quite difficult to describe the evaluation here. obviously i'm biased i won't tell you we overvalue on that, but i think the opportunity we are looking at is so big and so unique, i think helium is one of the few crypto projects that has a real tangible thing that everyone can understand. people get to participate and become a miniature cell tower. if you take about how that grows, today the network is focused on mostly i have see. but as you think of expansion, now something like 20,000 5g

hotspots being deployed and we expect other types of wireless networks on top of helium, whether that's wi-fi, six g or any other future technology. emily: we are seeing companies/valuations, plan for layoffs, we are in the middle of what seems to be a market downturn, are you changing your strategy at all or being more conservative with your cash as you navigate these macroeconomic conditions? amir: i think we generally have been believers in small teams that can do big things. today we are 60 or 70 employees and looking to grow. but i think the philosophy of the company has been to be small to do big things. that allows us to be flexible and different economic conditions. we are looking to add 2000 employees. i think there's a lot of pressure for startups to just show growth in multiple

directions. in one of those is headcounts. so we have always been careful about that and i think that will service going forward with the culture of it this way. and as a result of being able to use economics, you really get to build the entire community behind you. so the actual founding team in team has been a lot less than 600,000 plus. they are really the ones running the network. those are the numbers that matter around the individual headcount. emily: interesting. ceo of newly branded novo labs, thank you for joining us. coming up, how apple is replacing fintech -- fintech with its own plan. the tech giant developing its own payment processing technology in bringing more financial services. more on bloomberg scoop, next. this is bloomberg. ♪

emily: apple is developing its own payment processing technology and infrastructure for a future financial products across -- according to bloomberg sources. this as they try to reduce their reliance on outside partners over time. that bring in bloomberg's mark gurman for this scoop. what's the plan? mark: the plan is to bring the underlying infrastructure, the underlying process and the underlying development process for apple's future fintech products, things beyond apple pay, things beyond the apple card and apple cash in-house. as we know, apple has a few partners in the and -- fintech space, goldman sachs, green dot

bank, and a few others. they want to bring the underlying technology that they leveraged from those partners in a house for the next sweep of apple financial services. emily: who does this hurt? mark: definitely hurts core card. every credit card require what's known as a core processor or a payment processor. that's the engine that allows banks to either approve or reject a transaction. the core processor or core card does a lot more, they handle disputes, they handle parts of customer service for goldman sachs, they handle other underlying infrastructure for the financial system. and he saw their stock drop i believe more than 10% on the news this morning because investors in the country and analysts know how important work hard is to the apple card and goldman sachs. apple is building their own full on replacement, meaning core card rome -- won't be apples partner. apple will be going at it alone. emily: this will be apple's way

yet into finance. it's not going to be easy. will they be able to truth -- pull this off? mark: this is a multiyear effort with all sorts of things across the company. they are investing hundreds of millions of dollars, if not, billions. you saw an acquisition they called credit kudos and the u.k. that determines credit scores. that's part of apple's push, it's all part of the same thing to get apple for the first time working with credit bureaus to make lending decisions and approval decisions for fintech product applications for the first time. right now they will work with the world and now they are trying to build it on their own as well. this is a major, major effort, very much underlying the whole future plans. there are a few services that apple has in the works that go

beyond apple pay. they are working on a by now, pay later program to convert with the firm and others, that will launch this year or next. you are also seeing them work on a hardware subscription service, which will rely on the new platform for subscribing monthly to an iphone. emily: what could we -- when could we expect the new product that will rely on the system? mark: pay later will launch this year or the next. emily: goldman -- mark gurman with another scoop. thanks so much. as always. that does it for this edition of bloomberg technology. no forget to check out our park as. on the terminal, apple, spotify, i heart, anywhere you get your podcast for this daily news around. catch us everyday. i'm emily chang in san francisco. this is bloomberg. ♪

>> good morning. we are counting down to the open. >> good evening. the top stories, russia, deploys troops in a course to take the eastern region. u.s. intelligence says vladimir putin is being misled over the war. >> hopes for a de-escalation.