following two years we will roll it out to sixth, seventh, and eighth grade. cathie: do you teach classes -- ed: do you teach classes? cathie: i will go in but i will not be a teacher. there are more people qualify for that age group but i want to be there to inspire them. children need to be inspired. they need to want to be in school. katie: we have been listening to cathie woods speaking to ed ludlow on the summit in arkansas. let's take a listen, welcome to our bloomberg and bnn audiences. let's dive back into the action here. cathie: florida generally is open to new ideas for education. think about that. education through the lens of innovation. even down to the earliest years when they are reading, see spot run, why don't you see see sunshine? from an energy story, something to suggestwhy don't you have sog

like "see energy. " ed: there is a phrase from sources that you use which is, truth wins out. what is that? cathie: if our research is correct in terms of relying on having incredible analysts, incredible director of research, if our research is right -- just like the ihs example -- we are going to be so much closer to the mark than the traditional markets are. and what i love here is the retail investor believes truth will win out and they have patience. there will be a pendulum shift back to active. we have gone way too far -- just

to give eric -- i know he is not on anymore -- but with the passive strategies did was, for tried-and-true businesses, lower the cost of investing dramatically. it was good, it just went too far. ed: thank you for having us here. it has been fascinating to have these conversations. ladies and gentlemen, here and around the world, cathie wood. cathie: thank you. kriti: you have been listening to cathie wood speaking to ed ludlow in arkansas. talking about innovation but something she did talk about is among the many concepts in the etf space. give her a shout out. let's get a recap about what she talked about. she ended with comments on passive investing. this is something you know about and have written about in your latest book.

talk about the significance of passive investing when we talk about low liquidity, high volatility. eric: cathie on twitter said passive investing will be the worst investment of capital. people are saving for retirement and kids' college funds. are you going to put that into ark? we have seen flows go to dirt cheap passive and the other go to stuff that is a good complement, crypto, ark, thematic etfs. she is standing on the shoulders of jack vogel because people in passive love the low cost but they are bored. they want to do something that has made a big upside and he gives them much more patience for ark's volatility. i think it helps cathie because

you already own the fundamentally sound spots. her argument is harder this year because -- look at oil stocks. she would consider those to be done two years ago. they are the only thing up this year. as an index fund, you own them. you can relax a little more knowing you own them. she did admit ark is what she had, and at least she is eating her own cooking, but that is a tough message. jon: for all the years you have been watching the etf and fund world, the fact that we have seen such a dramatic drop in the stocks and yet, the ark messaging has not changed. what has been your reaction to that and people, at least the little supporters rallying around that? i will eric: give us a pat on the back. we set there would not be a run

on ark. it is going to be like one of those highflying mutual fund from the 1980's. vanguard is now in the core portfolios. it gives more people tolerance on high active shares. number two, what is happening is because she is so emboldened and dependable to buy these types of stocks, she has almost created a beta. that volumes allows people to trade ark, even if they do not like her or her messaging. it is a trading tool. what's an etf trades that volume is really coveted. you have options around the etf now and the big tech etf trades as big as xlk. that also helped her and she is a good messenger.

she is a great communicator and says things that get her on tv and that works. you have all the mentally sound stocks covered [beep] and you want someone to be the dreamer in your portfolio and give you asymmetric upside. kriti: eric alton is, thank you so much. more coming up next. this is bloomberg. ♪

kriti: this is "bloomberg markets." i am creepy good data -- i am kriti group to what's jon

erlichman. let's bring in the president of -- >> that is the interesting thing. the u.s. and other countries like canada are trying to be aggressive with rate hikes. others like the ecb and boj are trying to take things as slowly as possible. the bank of japan has been praying for inflation since 2012. they are finally getting it so they do not want to pour water on the fire. the question is, how far can the dollar-? as far as -- dollar-yen go?

there are still more to the topside. jon: all eyes are on the ecb as we await commentary. what do you think happens in the currency market? >> it is one of the more interesting meetings. there is a wide range of opinions from lagarde's blog post all the way to some people thinking they hike 50 tomorrow, which seems unlikely to me. i am on the doveish side. their hiking into an energy shot like the bank of england. we have 135 basis points price did and there are four more meetings after tomorrow. to me that seems like a lot and the market has been leaning toward this anti-fragmentation

package. the problem ecb has is as they hike rates, italian rates go up faster than german rates. that puts pressure on the peripheral debt. i don't think that is happening. i think the result tomorrow will be currency negative for the euro. i think they will be more doveish. kriti: [indiscernible] >> if you're talking about superhot economies, yes. but if you are talking europe and england, no. jon: thank you for joining us. the bloomberg tech summit is underway in san francisco. emily chang is there with an exclusive interview. emily: thank you. i am at the bloomberg tech summit.

joining me is michael miebach, ceo of mastercard. great to see you. mike: great to see you. emily: apple launched apple pay later on the apple card network. what is their role in this deal? what is in it for mastercard? like mike: it has been around. 80% of people around the world are saying we have heard of buy now, pay later. what is in it for us? we look at this and said here is another way to pay. they pay from the card, their bank account and so forth. we set if it is relevant, we have to offer it.

we make this available to any merchant and that is in it for us because we are relevant. we need lending partners who provide the loan. >> are you concerned about the regulator follow? there is the ongoing investigation. is there any hesitation on your end given the regulatory scrutiny? >> this is a really interesting question. in the end, responsible landing is something we are always concerned about but we are not the lenders. we are engaging all participants on the mastercard network saying here are the rules we put out as regulations in your country and we have to ensure compliance. that is always top of mind. in the end, what is always top of mind's payment solutions. buy now, pay later, do you want

to pay with a card? the other is data privacy consumer protection and so forth. we make sure all of that happens. emily: we talked right after apple announced that and said this is not good for too. >> apple is focused on the six-week product which i think is great. i think this spells concern for folks that are specialized in the short term product. emily: apple with one billion devices is doing this. >> more competition.

we launched mastercard installment which is the underlying program apple is using. we have large merchants like american airlines. there's a whole ecosystem. apple comes in as an additional player. we are excited but there is more choice for consumers. jon: you mentioned an airline in american. people are traveling a lot and that is what benefits a business like yours. but there are questions about the economy and where we might be three to six months from now.

how are you watching that unfold? what are you seeing and what is your outlook? >> our data is giving us a unique vantage point. we see global data on what people are spending. we see it over time and in real time. what is really striking is, first of all, the resilience of the consumer. the consumer in the united states, and europe, is still spending. you look on year on year basis it may, 10.5% over last year. what is also noticeable is the rebalancing of the spend. people have been spending on home-improvement and now experiences. they are going to go see a ballgame, go to restaurants. strong spending but in different categories does not benefit sectors the same way. the last thing i want to say is, kriti talked about people going out and about. people have already made those

expenditures and they are going to go to a place and spend on the ground. what we are expecting of 1.5 billion people more will be traveling this year than last year. the experience economy is back. people are traveling. they want to see friends and family. emily: mass shootings in america has people thinking about other ways we can control the selling of guns. mastercard is used to purchase guns in america every day. are you thinking about ways you could limit this purchases to potentially make a dent here? >> you are raising an important topic. we have had some very tragic events that we are equally worried about. when i look at what we can do with the data through our system, we do not know what people buy. we know where they are shopping, like long mark, but we do know

not -- like walmart, but we do not know what they are buying. we will enforce that to our partners that you cannot allow that in your business. we stand for lawfulness, but we are also supporting entities that are engaging in finding use of guns. in the end we do what we can recognize this is an important part of time. emily: mastercard has been dabbling in crypto. with the market downturn we have seen a downturn in cryptocurrencies. how bullish are you on the future and how big a part of mastercard's future do you think this will be? >> crypto, blockchain, the whole digital asset is interesting technology. we have been experimenting and investing for many years. i think it has the potential to

solve problems that have not been solved. for example, speed in payments. crypto as a payment tool is not the forefront of our focus. we want to facilitate if the investor wants to use crypto, they should use their mastercard. selling it should also be easy. that is a big part of our focus. the second part is crypto as a service. there is an ecosystem around crypto but they have similar problems. who is on the other end of the transaction? what about compliance? crypto is a service by mastercard. as we look ahead we see a world where central bank digital currencies could be a reality as governments are thinking about it.

we need to enable our network. if i want to pay coffee with the digital dollar, in the end it has to step over to us and we are ready. all these other things is what we stand for. that is what we brings to the industry. emily: thanks for joining us and coming to san francisco. you are going down to something california to meet with president biden. >> today. emily: good luck with that visit. kriti: emily chang, thank you is always. emily is also live with the ceo of amazon in the next hour. this is bloomberg. ♪

jon: this is "bloomberg markets ." hong kong says it will not tighten covid curbs ahead of the july 1 hand over anniversary.

for more on the fight against the virus we are joined by dr. amesh adalja from the bloomberg school of public health. this story really does speak to the tension over china's covid policy. something which you questioned the start. can you elaborate? dr. adalja: china has adhered to this zero covid policy which never reflected the biology of the virus. this cannot be eliminated or eradicated. it is not like a hurricane that passes and everything will be normal. it will always be with us. two not develop a key approach is inexplicable and i think of this more as a political policy exam public health or infectious disease policy. kriti: speak about the technology behind this.

mrna technology is something the chinese authorities have been vocal against. can you speak to us about the divergence in the biotech? dr. adalja: what china used were inactivated vaccines. that has validity but they are not necessarily as potent, especially against severe disease, hospitalization and death as mrna vaccines have been. the variants have made it clear these are not holding up. we saw china basically spreading conspiracy theories about u.s. vaccines, pfizer and moderna, which contained the virus in most places they were used. and the reticence for china to publish data on their own vaccines. if you look at all of that and couple it with the fact the elderly are refusing being vaccinated, and has put them in the situation where they have not taken the action they need to take and they are basically shunning the technology that would do it in favor of a homegrown, chinese mrna vaccine

and not taking advantage of the fact there are two mrna vaccines that are widely successful. jon: given that -- very quickly -- for those trying to watch the recovery, what are the risks of a resurgence from your vantage point? dr. adalja: it is going to be disruptive because they do not have population immunity. and much of the world we have a combination of vaccine and natural immunity keeps cases from translating and hospitals going underwater. but in china, they don't have that. plus, the people that are at risk for hospitalizations are the lowest vaccination rate. it is the exact opposite of how you want to handle a pandemic. it is completely wrong. i think the chinese people have to hold their government accountable as best i can. i know this is an authoritarian government, but they have to hold leaders accountable for mismanaging this pandemic like

we hold our leaders here accountable. jon: we appreciate your time. amesh adalja, bloomberg school of public health supported by michael r. bloomberg. for kriti gupta, i am jon erlichman. this is "bloomberg markets." ♪

mark: keeping you up-to-date with news from around the world, here's the first word. i am mark crumpton. an 11-year-old girl who survived the mass shooting in texas recounted in video testimony to congress how she covered herself with a dead classmate's blood to avoid being shot. the fourth grader at robb elementary school told lawmakers she watched a teacher get shot in the head looking for a place to hide. >> if there was