>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is bloomberg technology with emily chang.

>> i am caroline hyde, inver emily chang. media moguls, billionaires and some of the biggest names in tech media, finance and sports. we will get the latest from the ground. plus, one of the most famous apps in the world, tiktok, under pressure, fresh and they need big tech to deleted. and companies last year defied the pandemic to go public at a record pace. they brought the missing party to a bit of a halt. we will speak to the chief commercial officer. we will get to all of that in just a moment. first, a look at the markets. >> tech stocks made a complete turnaround. fascinating when you see this. if you look at the market, this is not what the markets look

like. you did not see green on the screen. a lot of the driven by the stronger dollar story that we saw. you kind of saw a turnaround story halfway through the session. a lot of it is driven by big tech. the nasdaq outperforming in a very big way. of 1.7% on the day. look at these yields. i bet some of the yield picture is playing into this. down only six basement -- down only six basis points. only seven basis points because over the last couple days and weeks, we had 11, 12, even 20 basis point in just one day. it is almost a muted day for bonds. the tech stocks are ultra rate sensitive. today, it actually performed well. that is because tesla, microsoft, google have all been

taking a beating. is it enough to have a turnaround story for the likes of art innovation? it does not seem so on this one day basis given this flooded that we have seen in this particular market. that is something we will have to keep our eye on. let's go to the next slide. it is not just all small tech. he said that in cryptocurrency and biotech as well but big tech really led the charge. i want to emphasize this. these are your biggest movers on the day. these will be the biggest index contributors on the day. amazon, microsoft, tesla. how much of this is a technical trait? >> i am curious to see if this is a sustainable move. >> thank you so much. a great roundup. tesla should be higher. they need a quarter of deliveries and record production. factories in china and germany

will remain idle for several weeks. they need to cover the company. we had mixed messages from elon musk about the cash that was going on and they did not seem to paint the picture they would be closing down some of the manufacturing units. >> there were reports out of china and germany. click the plants will be off-line for a couple of weeks this month. click the have -- glass half-empty would say what a terrible time to be off-line. they just came off of this bad quarter where production was paused because of covid and now they are shutting their production again in the glass half-full would say this is all go back better. auto companies typically kick plans off-line and do retooling. you can often get better production after you have had an opportunity to do that. we will have to see what production is like going forward.

the company did say they had a really strong production. >> yes. it was actually less than the market wanted. >> 254 was the delivery for the quarter. that was the dip for the first quarter. the market kind of expected that because they knew that china was the most productive factory and had been off-line for several weeks because of the covid lockdown. it is definitely a mixed bag. there will be a lot of questions about production and the ramp-up of the new factories in austin and berlin when the company reports earnings july 20. >> berlin and austin using -- losing billions of dollars. or the any output. tesla owners back on may 31. it'd painting a gloomy picture or an upbeat one?

>> he has always been fairly, he has always been fairly vague about the state of the economy as a whole. this is the man who is the longest running auto industry ceo. he has been the ceo since 2008. easter the company through the first recession in 2008 and 2009. the company came very close to bankruptcy during model three. it is this dance of investing all of this money into getting new production capacity online. but if you're not delivering the cars, you're not making that much money. i think he has been -- he has gotten pretty good at managing cash. demand does not seem to be a problem at the moment and tesla has raised prices quit a bit to cover the costs of higher energy costs and higher commodity costs. and making a lot more than anyone else out there.

>> looking around shanghai in general, we were worried about tesla lockdowns as a zero covid policy seems very much still in effect. how much are we worried about the longer-term bet that tesla has made? >> i think that tesla plus footprint is so important to the company and it is also does very important to china. i can see that they are going to let that plan fall by the wayside. the people living in the plant, the closed loop system as far as they possibly could. the geopolitical questioned about china vias of the the u.s. -- it is a very -- vis-a-vis the u.s. has always been a strange one. >> meanwhile, elon musk is meant to be out in the valley. this is our own notable

attribute, ed ludlow on the ground. ed, talk to us about what is going on on the ground. >> bob iger is now upstairs and i said what is top of mind for you? >> he said i am tired and having a good time in the sun. he actually basically set the scene of what is being discussed there. have a listen. >> i think it will be great. i think the world is changed and it is not about how much, it is about how good. click the vibe is very similar here this year to last year. really heavy covid restrictions in place. there was a lot they are

discussing. there is big picture and the backdrop that they are all competing in a very highly competitive streaming space. >> overall, remember last time you were looking at the relationship, the fact that he was shouting to sheryl sandberg. there has been a lot of change at the top since you were last there. >> yes. does seem awkward moments are expected to happen. i talked about -- i talked about bob iger. their relationship is under stress. you have elon musk do to come here along with the twitter ceo and cfo, ned siegel. of course there was talk about the twitter deal and even if they aren't, when they are walking out on their mountain bike and having an adventure and flyfishing, whatever it is, obviously that deal will be discussed here.

it is the one that everyone in this media landscape is talking about. >> remind us what everyone is meant to be doing. it is about relationship building? sharing knowledge? what is the overall impact? >> it is hosted by alan. it is a boutique investment bank. they advised on some of the biggest deals in history. you look at the name and the deals, they are advisors on the twitter deal. they have been involved in the microsoft bank division deal. the idea is that they bring together all of these people from telecoms but you see other people do to be here. and the hope is that this is a place where future deals are born. the idea is discussed and then what is thrown in this year is that the world is changing. markets are incredibly volatile. central banks around the world are fighting seemingly untamable

inflation and they do have behind closed doors these big picture discussions where they are basically giving their worldview. that is what the premium access is. you get to go talk to big thinkers. >> we thank you. ed ludlow out there on the ground. plenty more from him. coming up almost imminently is the tiktok focus. we will be speaking to the fcc commissioner. why he wants apple and google to remove the app entirely. this is bloomberg. >> bloomberg television is sponsored by merrill.

>> in the u.s., tiktok has been

installed 320 million times and other next guest is calling on apple and google to remove that app from the app store. brendan carr, commissioner, thank you for joining us. why would you want it removed from the app store? what power do you think that would have? >> if tiktok is not what it appears to be on the services, it is not just another app for sharing funny videos or memes. that is just a sheep's clothing. it does operate as a sophisticated surveillance tool. it has web browsing to biometrics like basement and voiceprint, location information and some circumstances draft messages. that is a security concern but i think it comes into play with google and apple's policies. there are new elevate -- new revelations that more data has been flowing back to beijing than previously reported. data flows are very important in terms of how the app stores allow applications to continue

to be on those platforms. take a look at your app policies. if these data flows are inconsistent with representation , it seems to be that way to me, they can with them from the app store. >> buzzfeed looked at this and it repeatedly access private information despite company assurances to the contrary. what data are you assessing to ensure this is factually correct? like the buzzfeed new story has internal communications from tiktok and officials including ones that say everything can be seen in china. and tiktok is absent a letter to a number of senators on friday that indicated a lot of information building back to beijing. some of those bits of information that were shared in the buzzfeed article. the administration from the agency group out of treasury is

also taking a look at some of this and i would encourage that process to move swiftly in light of these new revelations. >> indeed. overall, the company, tiktok has said that china-based employees can access u.s. data. this is just a robust cybersecurity control. all of this overseen by u.s. based security. the coo has said i would be very willing to engage with lawmakers and what he said is set the record straight. have you reached out to tiktok, leadership there? >> i have not been set straight by tiktok just yet but i am happy to engage directly with tiktok officials on this. there are about two main functions here. for years they were asked directly by government officials if officials in beijing are accessing private u.s. user data and every time they have been saying yes but it is not a problem for these reasons. there was a all u.s. data is

stored in the u.s. and now we find out there is apparently a tremendous amount of information that was flowing back to beijing. new protections will be putting all of this in place. that buzzfeed news article had a tiktok official saying at the end of the day, these are tools built by china and we will see if they can continue to get access even after those controls are put in place. frankly this comes down to a matter of trust and when there has been misrepresentation about how much data has been pulled, i don't have a lot of trust left in tiktok and i am not alone. it was a member of the australian parliament that said i see your u.s. user data is going there. i think this is probably a broader effort to take a look with more scrutiny at the data flows in tiktok. >> one of the three that were here under the trump administration, in general, it is not what users want.

do you see any sort of middle ground here? any assurances the country -- company could make or the ability to maintain and move this in the u.s. but make sure you are not worried about the information play? >> obviously i am skeptical. step one has to be a full airing of the information that did flow before we talk about processing additional data flows going forward. we can only take official action as a body through a vote of the four of us. i think there are other agencies that will be stepping in as well with these concerns. cries have you heard back from the parent company google and apple about any of the moves they make on their app stores? >> i have asked for a response by july 8 and there is precedent for those app stores when data has flowed to servers in china without that being disclosed. there are other surreptitious uses of data to take action so i

am open for them to tell me here why it is a violation of our policy or not but the national security questioned is pretty clear. u.s. military branches have bent almost all those in tiktok from the devices. we want families of u.s. troops not to put it on their personal devices either so there is a lot of concern about the national security threats. >> we thank you. come back when you have heard from the companies and let us know if you do manage to help some of the tiktok officials as well. this is bloomberg. ♪

>> >> let's talk about deals. qualcomm's $1 billion deal will move forward after arrival failed to merge to break of the deal for the cloud computing company. that is according to people familiar with the matter. this gets qualcomm has at least one hurdle. the biggest ever take by -- take over by a semiconductor maker. the u.k. will force owners of apps such as social media to give safe list information. the crackdown is part of the forthcoming online bid. >> the eu wants to increase the number of tech startups in europe. doing this through the eu listing bid.

the eu has far fewer deep tech firms in the u.s. and china and the goal is to attract more tech and even have them relocate to europe as well as invest in women. >> this crypto exchange signed an agreement that includes an option to purchase the crypto lender. this book exclusively on friday. >> there are synergies pertaining to business. if you look at what they have built out, i think they have a loyal customer base. they have a real fitness model. they have a program that people love. they have strong leadership and i think we have been focusing on infrastructure. everything from the risk engine

and everything else. i think there are a lot of ways our products can work together and mess together in a way that is better than either independently. i would say they have been working really productively with regulator on building out regulated yield product and licensed yield product which we are excited about and excited they have been doing it in a regulated way. i think that is the healthy way to do it. i think that will serve them well long-term and it is something that we are excited to work with as well. >> you told politico that they are looking for opportunities to bail out places customers would otherwise be underwater. are you worried that bailing out a company may not actually be what is best for the industry at large? >> it is a good questioned and i

am guessing what you're getting at is does that bailout accompany that should have been bailed? i think what i would say are two things. first of all, i am way more excited to bailout customers than shareholders. the focus of this is not how we deliver as much shareholder value as possible, it is how do we protect customers? i think that implies pretty different things. that is one thing. i think another that is way more important for the ecosystem is the one that is a small hazard. the other thing is that we are trying to find who are the responsible players who were building out a good business and had a sustainable model and could use short-term liquidity.

and that could help protect customer funds and build a real valuable business that i think had something real to offer to customers rather than which companies could never have existed probably. as of today, maybe we should just let them die a quiet death. i think that is something we have been thinking about. >> coming up, we will speak to the nasdaq chief commercial officers. also, whether it will speak up in the second half. stay tuned, this is bloomberg.

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>> welcome back to bloomberg technology. companies defy the pandemic to go public at a record pace. now, it brought an abrupt end to

that party. >> we have 100 new listings. we only saw $12 billion raised. not a lot of big listings. request 108 ipo's, 59 were ipo's. you still saw new sponsors

coming to market. there has been a slow down in that market compared to what we saw last year based on the market perception. it is still a viable way for companies to come to market. >> we have heard the likes of instacart and discord making it known. >> by the time we got to the end of that process, we would not really go into the market as choppy as it was. everybody is looking for a little bit more stability in the markets. they want to see the volatility

index where the vix come back down below 25 or 20 even. they want to see some of the macro uncertainty. we are hopeful that we will see some big deals come back down after labor day. >> talk to us about how private companies can help their employee base by having some sort of secondary offering. just wondering how you can have these sort of event. what are people looking at? >> this is still a very viable alternative. whether companies will do a tender offer where they want to run an auction to do some price

discovery and see what is the true value of their stock now or just to mark, the nasdaq private market has a great market to help companies achieve that liquidity. >> how much of those companies want to login the new valuations? -- lock in the new valuations? >> there are a lot of companies on the public side. we will see a similar compression. one of the things we tracked really closely is the price to earnings multiple in the public markets relative to the tenure interest rate and there is a pretty clear trend that if the tenure interest rate goes up, multiples come down. there are future cash flows or the lack there of our littlest valuable. >> one of the pools of money willing to commit this private

market at the moment? we have heard of certain institutions looking to help bridge that gap. >> that is right. i think a lot of those will look to step in. the questions a lot of companies are asking about is if we should raise that new round of equities where i have to priced around or is it better to do some sort of a convertible debt security where i can bridge this without having to see that. the founders as he has just raised the funding last year. now they are probably reticent to go look avenue lower round valuation. that trade-off between debt and equity is what we will hear companies talking about. are they all u.s. and domestic best?

>> we definitely have seen some headwinds in terms of recruiting international listings a lot -- along with the geopolitical uncertainty. there has been a search for the new listings. things will slow down a bit. we have seen an increase in demand from companies in southeast asia, latin america and other emerging markets. we think it is critical that we keep attracting these high-growth companies to the u.s. capital markets. >> what about the innovation on your side? what more are you looking to do to ensure they have more? how are you looking to enjoy your -- >> we have solutions for companies at every stage of their lifecycle so we talk about

how the nasdaq private market can work with the liquidity pre-ipo. an issue getting more and more important is what you're doing around these exposures. -- disclosures. we are actively working with our issuers. at the same time, we are looking into whether commercially viable options are to help these companies with the new reporting requirements from regulators, investors and all other stakeholders. we recently completed a kpi reporting platform that will help companies accelerate the way the report does. >> let's talk a little bit about this when we think of the asg i. this is not just environmental but thinking about diversity on board and who you have on. i was that conversation going? how much are investors caring about that at the moment?

>> one of the hallmarks of a great market is to have great corporate governance standards. so we introduced a new disclosure rule. we have seen a great response in terms of companies and investors. and as you mentioned, there is a lot of work going into human capital management and how they are thinking about their employee base during this challenging time. >> jeff, great to catch up with you. after the overturning of roe v. wade, we will discuss how crypto is looking to support women during this difficult time. this is bloomberg. ♪

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>> let's talk about crypto for a little. fundraising events have been forming around all types of causes. digital assets are looking -- being looked at as a way to aid women. i am really pleased to have some time with you. talk to us about what your organization is looking to do around supporting autonomous organizations, funded women to access abortions?

>> one of the interesting things we started to see in the world of entities and crypto, people are now going to crypto and entities as a way to donate money in order to support causes like planned parenthood. my organization runs an nft project called crypto chicks. we were the first crypto donation ever. i think we are starting to see entities as a fundraising measure but i think we will start to see one step further than that where decentralized autonomous organizations which are self governed entities will start to create this network nationwide of people who live in safe states where women can get an abortion and people who live in states where they woke up in the morning and realized they

need access to an abortion or save reproductive health care, they can no longer legally do that in their space and the dow can provide the mechanism to not only just connect women or sponsor -- but sponsor emergency trips. the interesting thing with this is that for people who are upset about what happened with overturning roe v. wade, that number is looking to get involved and mobilize in an action driven way instead of getting out into the streets and protesting which we have seen. they don't always have as much of an impact. i think this is a great way to mobilize people who are passionate about how i can wake up in the morning and actually do something. >> do you think it brings new people to the world of cryptocurrency? >> i do.

i think there was this misconception about the fact that crypto is associated with the deep dark web. it is actually creating this underground network. it is an underground network for good where we can connect people from all around the world to drive together something that is fundamentally what we believe in driving human rights. >> what is also a misconception is that crypto is anonymous. how do you ensure that you are protecting the women who are using the funds in this way. >> i would advise anyone getting involved in these to use your crypto in a self hosted wallet. that means you know the keys to your wallet.

and not using and storing platforms that you might be more traditionally familiar with like coinbase. there is news recently that coinbase might be selling geo-tracking data to the government. we are waiting on exactly the extent of that information being shared but i would caution people that when you are using a centralized body as a platform for sending crypto, they are tracking your information. you are using something that is used on the blockchain, then you can maintain that anonymity that you are looking for in a situation like this where you are worried about potentially being tracked by the government. >> we will look at more centralized entities. i am interested in your perspective more broadly on this time of great volatility. i looked at crypto chicks. a lot of this is nft project.

i am interested as to whether that makes people less willing? i think at the height of the crypto craze, money was raised within a click of your thumbs around by the constitution. how quickly are you able to raise funds in these more difficult environments? >> we saw incredible excitement from the market. i think there are a lot of people in the crypto industry that were just outraged. and people who are thinking about this as a way to be a part of driving change and history. we have people outpouring support from the broader community as well and a few other projects that are doing similar measures to donate back to organizations like planned parenthood and the whole market has been rally in support behind these initiatives. it has been very heartwarming to see.

>> do you think that doubt in general will be used for charitable endeavors? it may not be used for fundraising such as this but i more accountable way of raising funds no matter what way. >> absolutely, there is complete transparency about the funds used. and every person donating and participating gets a say in how the funds are disturbed and. for every individual person to feel like they are a partial owner of what is being created and distributed, i think that is a lot more action oriented and from a personal impact perspective, a lot of people feel like they are really driving change and being a part of that. having that sense of closeness doesn't really help to get people a little bit more involved. i think there will be plenty more initiatives that come out of dallas.

>> have you looked for celebrity endorsements? they got caught up in the world here. >> we are connected with some high-profile women and we feel that has been very helpful for us. a lot of women are scared of the world of crypto. seeing familiar faces that you respect and no i really high-profile individuals. having those people be a part of the ecosystem and a part of the community helps to normalize it a little bit. i think the people that have been really interested are still interested. i think we are excited to be sharing that with them.

>> you kind of changed your narrative a little bit as well. you said people who are slightly scared of the world of crypto, how do you ensure that people are doing this with the financial literacy when they could lose a lot of money in the investment perspective. for example, in more of your older nft project. >> i think it is really important to educate women who are a little bit more risk-averse. educating on what is the impact, are you investing in something that is a short-term roi? really encouraging people to do a significant amount of research before they invest in anything with the assumption there may be a downturn in the market right now but if you look across the whole tech market in terms of risk assets and stock, everything is down. we are encouraging people to spend this time doing a lot of

research and understanding what they view being around and what is overly strong driving factor in the crypto industry. and if people want to then invest, they invest with a lot more conviction and have the time and energy invested in educating themselves. we put a lot of effort into making sure that women across the gamut are well educated on what the different terms and ways you can invest our. beyond just being a collector or an investor but also being an entrepreneur as well. quick thank you so much for spending time. meanwhile, coming up, a bloomberg school. this is bloomberg. ♪

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>> now to bloomberg school. penicillin selling chipmaking year to china. this is at a time when we look at possible new tariffs on china but they are not sure if technology is going in that direction. >> absolutely right. this is something we have seen in the trump administration and the now the biden administration in terms of trying to stop china advancing, china looking to catch up. one of the chokepoints is this equipment for printing

computers. they need to stop providing china with this equipment. this is an area where china can't get access to it. they are playing on a 95 percent market share. it could put the brakes on their ability to catch up with the u.s. on printing. not even just the most high-tech kinds of computer chips but even older, more mature ones as well. >> do you think the netherlands will agree? >> that is something we understand they have not yet agreed to at the u.s. has been asking for but this is certainly a place where the biden administration has been looking

to build consensus with allies. we understand a similar request has been made of japan and nikon in terms of one major company. they have other small presenters, a very small minority of that market. this has been an area where the biden administration has been working with allies globally to try to align export control to make sure that something china can get from one country to prevent it from getting to another. >> we thank you for bringing that. that does it for this edition of bloomberg technology.

we have of you there for you. you can find it on the terminal as well as online on apple, spotify and i have. from new york, this is bloomberg. ♪

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