announcer: from the heart of where our innovation, money, and power collide in silicon valley and beyond, this is bloomberg technology with emily chang. >> this is bloomberg technology. it is no longer full steam ahead for silicon valley. we will look at how amazon and apple managed to win over the obstacles. plus, the chinese government tried to create a stealth tiktok account to promote propaganda in the west. the ftc is signaling about an effort to sue the company. first, what a day on the markets. what a week what a month.

the stock market has had the best month since 2020. the nasdaq 100, apple posting one of the best months since 2009. big tech into these trillion dollar companies are back on top. tesla, we just threw it in there because it wouldn't be fun if we didn't mention tesla at least once a day. tesla is up 30% for the month. we will talk about energy later. the big technical levels we have seen trying to recruit -- recoup the big losses. go cross asset. big tech has been really boosted

by yields declining 44 basis points on the month. that's really where you have technology get a lift. i do bitcoin just for you. >> thank you, we appreciate it. let's look at amazon. proving its e-commerce power in the computing business helping turnout revenue that consumers can offset. it gave revenue forecast of 17%. that relieved investors. it had the best month since 2009. particularly from the consumer angle. what's amazing is before the earnings, we were worried about what walmart was suggesting and asked by. then, amazon shows its power and prowess. >> and relief.

that's exactly right. there were these expectations then the results blew the concerns away. investors were very relieved that amazon had resumed growth up to 17% in the current quarter and also they shed about hundred thousand workers and they got their spending under control. there were concerns about overbuilding and having too many people. investors were worried how long that was going to last and drag on. this quarter, they showed they are starting to unwind that and starting to see more positive signs. >> anymore details from the call yesterday? they spelled out how they were going to manage the next quarter. >> one thing on the spending was

investors are always worried about how quickly they're going to spend whatever comes in. because of that overbuild on their delivery network, they're going to cool off on warehouses and delivery stations, but they will spend more and it's going to be targeted on data centers and feeling cloud computing business. -- fueling cloud computing business. they expect that to remain strong even as they cool off investing on the e-commerce side. >> what is so good about amazon be savvy walmart and best buy that have such inventory loads that they need to cut the price. amazon has such a different business model. how is that helped it? >> that's a great point and it shows in the earnings report. amazon has this orchid place model where 50% of the products sold, that's the highest number

it has ever been before come from independent third-party merchants. that means that stores like walmart and target have an inventory risk and they have to take the products -- discounts on products they have already purchased before they sell them, amazon doesn't have that inventory risk. if a merchant has to take a loss, amazon is not exposed. they still get the commission. they still get paid to pack and deliver the product. a lot of this marketplace model shields it from the inventory risk that of the real deal of -- other retailers are facing. >> thumbs up, happy weekend. let's talk about the recent changes in navigation having to do with consumer behavior around sentiment. a lot of your portfolio is very much around the consumer. you have been all about consumer

engagement and sentiment. i'm interested, there was a note coming from wells fargo that caught everyone's eye saying if we are in a recession, no one has told the consumer. do you think the consumer is resilient in this environment? >> thank you for having me. we really believe in the resiliency of people. we are optimistic about the future. we saw consumers be incredibly resilient and adaptable during the pandemic and believe that will hold up through this economic backdrop. caroline: why? >> you see consumer spending levels are high. the sentiment on the other hand is low. they are really taking in what's happening right now and

adapting. they are taking precautionary steps. we are hearing about 39% of consumers are creating a budget. 26% of consumers are creating a savings account for an emergency fund. they are beginning to make changes. particularly for lower income consumers, we saw walmart come out and lower their profit target when consumers are shifting dollars from discretionary categories like apparel to categories that are more necessity like. -- necessities like food. consumers adapt. that's where we see the resiliency coming in. caroline: there are different types of consumers out there. consumers are facing a balancing act they can't win.

groceries and aghast -- and gas cost more. but then there is the luxury purchaser who is able to survive their 401(k) falling off a cliff and they are still willing with the pent up demand to be traveling and therefore your portfolio company comes into my mind. are you thinking that this consumer is i for gated? -- bifurcated? >> absolutely, i think that's true right now. we have been looking toward opportunities that have the consumer in mind increasing costs for them. the reality is that this is complex and dynamic time for consumers. spend his remaining high. sentiment is low. consumers want to get out there and live their lives coming out of the pandemic. they want to eat out and travel.

on the other hand, they have inflation staring them in the face and their dollars aren't going up as much as they used to. caroline: i've had some say that this summer they will do it. this summer, i'm getting on the flight but people are already buying for example, walmart said the shopping time for the september return to school is really good. i worry is i'm the parent, i'm looking at amazon prime day and buying lunch boxes because i don't want them to get more expensive. our people stocking up now and perhaps into the fall and winter is when we start to pull back? >> there's a possibility of that. at this moment, we are seeing a shift in spend from durable goods, the one-time replacement purchases the people made during the pandemic and they are not putting dollars toward that anymore. they're looking at things like back-to-school, travel, the services they didn't get to

spend on in the last couple of years. i very much believe and see that consumers are taking precautionary steps and they will start to pull back. for the middle income and upper income, we have not seen that effect yet. for the lower income, we have seen it. for the back half of this year, that's something we have our island. caroline: looking -- something we have seen -- have our eye on. caroline: what about a desire to be in the market? the retail investor the one that wants to be building wealth, how do you think about that from a fintech effective? >> there was a lot of energy around that in the last couple of years. the reality has set in there were plenty of individuals that got burned. they were chasing what i see as

a free lunch. the realities are setting in. i am hopeful that consumers will want to continue to purchase a paid as -- participate as retail investors. this is critical for broad wealth creation. that being said, chasing the trends, people are feeling the pain of that right now. i think that will probably color and shape how they invest going forward. caroline: it is always fascinating to have someone like you on. coming up, the chips race between the u.s. and china is heating up and it's not the only point of tension between these two countries. this is bloomberg. ♪

caroline: the house and senate have passed the chips act. it now goes to president biden's desk to be signed into law. the u.s. is tightening restrictions on china's access to chipmaking gear. according to two suppliers. washington is accelerating efforts to win out. thank you for being with us. we have seen already the reports that america was leaning on european makers. now, talk to us about the latest

news. >> we had two ceos of chip equipment makers who came out this week talking about tighter restrictions on their ability to export gear into china. this is part of the ongoing tensions between the u.s. and china. the biden administration has been following on these plans to try to restrict china's ability to get the equipment they need. the chipmakers are now pulling back and they are disclosing to their investors that they have these tighter restrictions and this is part of a broader clash that the u.s. and china are going through right now. the u.s. is trying to hold back china as its building on his chipmaking expertise but more broadly the ability to build this technology sector.

caroline: china's response from your perspective? >> they have pushed back. they think the u.s. is unfairly tried to stop the rise in the technology area. they want to be able to build these capabilities within the country. they are investing billions of dollars into companies, venture capital funds to be able to invest in some conductors in particular because that is the foundation of the tech industry but also areas like artificial intelligence and robotics, autonomous driving etc. caroline: also, the animosity between china and the u.s. on a tech level has spread into social media. we have heard the likes of meta say we need to keep building and scaling because otherwise china will come in. they made tiktok. it has a real -- they mean tiktok. it has up foothold in the u.s..

>> tiktok is of course one of the apps that was developed by a chinese company. they have a bunch of them but tiktok has taken off. it came under scrutiny under the trump administration which planned on banning map for a while. it is become popular in their concerns about national security. we found information that the chinese government had gone to tiktok and tried to set up a channel where they could put out there point of view. and advocate for the chinese point of view without disclosing where it was coming from. tiktok pushed back and said they would not comply with those regulations. they don't want to be viewed as an arm of the chinese government.

caroline: there has been's and interesting reporting from bloomberg about their foothold in gen z and the way it uses tiktok. >> tiktok is exploding in popularity. was changing now are a couple of things. tiktok is beginning to cash in on that popularity. they're figuring out how to use advertising to bring in revenues and we talked about how the revenues are surging, they are likely to go to $12 billion this year. they are moving beyond their old platform. they used to be only entertainment.

if you had to search for something, you would go to google. now, what you are saying is that tiktok is being used to find things in ways that used to search especially for younger viewers. caroline: coming up, shares of intel plunged today and the ceo told bloomberg that the stock deserves to be down right now. this is bloomberg. ♪

caroline: intel has slashed its sales and profit forecast. this ceo conceded that intel needed more time to make its products competitive. at the same time, he assured investors that the current quarter will beat the low point. >> we expect 22 and 23 to be challenging.

we had great wins that we announced yesterday. with amazon, that, these are places where we will go fight every customer every socket every workload, but we expect 22 and 23 will be challenging years until we get the products that are unquestionably the best in the industry. >> macro headwinds, are you factoring them into your expectations for the business, the extent to which you want to invest? >> the enterprise market continues to be strong. the weakness in the consumer market is where we have seen it acutely. like some conductors -- semiconductors, it is cyclical and we are going to embrace this and make the company stronger and better. austerity helps to drive my transformation agenda or rapidly. enough that we feel like this is the bottom. that's what we clearly communicated in the earnings call and we are off to do better

for ourselves and our shareholders. >> you also talked about your new guidance for full-year growth margins. analysts were skeptical of your number after the call that it is to hopeful considering the pricing pressures everyone is under on chips and increased costs. what is the possibility you will have to make that lower? >> we set out a framework that we are confident that we can meet and beat. we also had some one-time things in the quarter like inventory reserves that will naturally reverse. some of this was the dramatic swings we saw in the quarter. we were able to adjust our fixed cost that quickly so we will have more time to do that in the second half of the year. with new products ramping, they are very negative. as a start to wrap, we get better margin structure. overall, we are confident in the

guide that we gave for the year and we have a natural strength of shipping more products in the second half of the year. >> intel stock is down 33% this year. the market isn't buying what you're selling. what is everyone getting so wrong? >> we deserve to be down today. with the earnings we report the guidance we gave, it's a bit of a reset. we disappointed ourselves and our shareholders in that respect. at symptom, we have laid out a multiyear path to the future and we are confident that will be realized. we are getting more and more proof points along the way such as our technology and process. that is one place that everybody has said is most critical. if i have leadership process and capacity, intel is going to do

fine for the future. we had neither, we are getting back both of those as we go forward. we are working on it, but clearly this is a journey. >> what difference will the chips act make to your journey? >> this may be the most significant industrial policy legislation that has been put in place since world war ii in the u.s.. this is huge. we said we are expecting to be a beneficiary of that in the near term with the manufacturing offsets we have an aggressive capital billed for that. the tax benefits will be helpful. this is good for the industry, good for the united states and intel will be a beneficiary and i'm proud to have played a part in getting it across the line. caroline: that was the ceo of intel. meantime, a judge decides when

the elon musk and twitter trial begins. plus meta and its peers are in the ftc crosshairs is the government looks to slow down big tech m&a. this is bloomberg. ♪

hi, i'm denise. i've lost over 22 pounds with golo in six months and i've kept it off for over a year. i was skeptical about golo in the beginning because i've tried so many different types of diet products before. i've tried detox, i've tried teas, i've tried all different types of pills, so i was skeptical about anything working because it never did. but look what golo has done. look what it has done. i'm in a size 4 pair of pants. go golo. (soft music)

caroline: twitters lawsuit

against elon musk is set for a five day trial starting october 17 in delaware. the lawyers say they need only four days to prove elon musk is misusing questions as an excuse to walk away from the deal. elon musk is arguing that twitters handover of material has not been forthcoming. we get the drip feed of news and we understand elon musk has filed counterclaims but we won't be able to read them. >> exactly. they are not public right now so we can speculate as to what they might say. my guess is he will say it's a real issue and we will talk about in october. the two sides were arguing over when it was going to be.

twitter wanted it one week earlier. clearly they were able to find a date that works for everybody. we will see you there. >> five days, four days. a court in delaware is known for speed but is this particularly fast? >> it feels fast to me, but at the same time it feels like a simple case and that both sides have already signed the merger agreement. we know the issues at hand. it is the bought issue. -- bot issue. twitter thought they could do it in four days. clearly they think they can make their case quickly. we will find out. it sounds like it's going to be five day week and hopefully have some sort of verdict or solution by the end of the week october

21. caroline: for lawyers, three months short. for us, it feels like an eternity. what should we look out for? >> behind the scenes, we will see both sides do what you do for a trial. they will be requesting documentation and providing it to one another. they will be setting up witnesses. all of that stuff. in the meantime, there is supposed to be a vote from twitter shareholders in september. to formalize or formulate the deal excuse me, create the deal and make sure everything is good to go. that will be in september and that's a way for them to show their moving forward with whole thing. not letting it get derailed. caroline: it's friday, i don't know what my name is let alone whether to say formalize or formulate.

the federal trade commission chair is sending a strong warning sign to silicon valley by trying to vote -- block meta's pursuit of a fitness that. the aggressive approach for a minor deal seemingly suggests that the ftc is going to play hardball with big tech m&a. our guest is here to tell us first and foremost she overruled advice. how big of a deal is that? >> we are seeing her follow through on something that a lot of little observers had been expecting. that hadn't happened in the early days of the by administration because you had a deadlock on the ftc of 2-2. now it's 3-2 so cases like this

can proceed. facebook already has dominance of vr. it's a nascent platform, it is potentially important. in acquiring the smaller company , this allows it to extend its dominance. this is controversial in silicon valley because what facebook is doing is something that not only has it been doing for basically the last decade, but the entire industry has been doing it. it's a playbook that these big tech giants look to get into new platforms like vr and purchasing. the ftc is saying they be it's not going to happen anymore. caroline: meta has made a hundred or so purchases of small companies. the ftc is saying you're monopolizing the world of

virtual reality. his meta the main company that's going to be at risk or is this setting the scene for alphabet or apple? >> it is certainly something that meta in particular has employed extensively. what makes this lawsuit so interesting is that separately, mark zuckerberg is running into real problems with growth, privacy, the apple stuff. we are seeing disappointing earnings and the way that facebook has -- meta has gotten around it in the past is by buying companies. when there was a shift to mobile, some of that innovation happened inside the company called facebook but what propels meta facebook to dominance was instagram. that was not a huge acquisition. then the acquisition of whatsapp. that is given it a huge dominance in social media. if mark zuckerberg had his

druthers, he would probably be trying to buy tiktok. that's out of the question because the sec is never going to go for that. they won't even let him by this tiny vr company. caroline: she knew that her writings and academia were about the role of consolidation. it has taken time to finally get this bite rather than bark. >> she has a very narrow window. bloomberg has written about this over a couple of months. because you had it to happen to deadlock, she wasn't able to do anything. you get a new democratic commissioner and that gives her a three-to edge. when we hit the midterms, if republicans take control of one of the houses of congress as we expect, you're going to see congressional pushback from

republicans and that will limit her ability get things done. there is a very narrow window politically and she is of course trying to pursue it. it's not that surprising. caroline: great to have your expertise with us. have a great weekend. coming up, as the world moves toward web three, we talk about the need to own your own virtual identity in domain name. this is bloomberg. ♪

caroline: time for our crypto report. bitcoin ether headed toward their best month since 2021. let's bring it chanel he bostick -- sonali basak. >> on a seven day basis, you are seeing it up or than 5%. it is starting to waiver under $4000 but it has a nice rally. you look at that right after the federal reserve raised interest rates, that was something that was supposed to have muted risk appetite but it is not the case of bitcoin this week. if you look at bitcoin over the full year, where does that leave us in terms of climbing back up to where we were before? we have a long way to go. we are not even really where we

were for the average for the full year. it was a little over $41,000. the $24,000 is an exciting jump. it is still less than half of where you were or almost a third of where you were at the peak in the last year. let's look at ethereum. you had an even bigger jump this week than in bitcoin. it is a smaller asset by market value. 13.5% jump. there is a lot of excitement about ethereum, the merge that is anticipated in the coming months. is this evaluation plate when you look at ethereum versus bitcoin? people are more excited about ethereum's future. you do have the 25% decline over the year, still a way to climb back. caroline: thank you. stick with us, because we will

turn our attention to digital identities. web three digital startup -- crypto winter is not affecting everyone in the same white. congratulation on the fund raised. i understand being led by some key vc's in a space. what is unstoppable domains trying to do? am i going to be buying caroline hyde. ether? >> we create an fts in this case domains. we believe you will use it not only for crypto payments. you definitely want a domain name to make that simpler.

but we think you will also use it to log into all of your apps. people are doing that right now for web3 applications created we think it will spread to the rest of the internet as well. >> talk to us about how unstoppable domains is creating the next version of the internet. >> people spend 50% or more of their time online now just staring at a screen. less than 1% of the things that you own or likely digital assets. we think over the coming decade, that's when to change. we have created a lot of value in crypto. we think that's only going to increase. you see mark zuckerberg spending $10 billion to build the metaverse. that says there's a huge market in digital assets and we think one of the first things you will

want to own online is going to be your name and reputation. that is the push behind july identity. >> i'm already thinking about how hard it was to get my twitter name or my website name or things like that. is it going to be countless? will we have to have caroline hyde version 1, 2, 3? explain to me how it's going to look. >> you have a good example. how much do you think elon musk twitter handle is worth to him? probably a million dollars. he doesn't own that name on twitter. he could get kicked off and he would lose it. this is the whole promise of web3 and crypto is that you should be owning a digital asset. instead of having one name on twitter and a different one on instagram and another one on reddit. you could have a single name you control inside your the wallet and you could use it to sign

into these different social applications and you would have a consistent reputation. >> what if someone just went out and bought up the celebrity once? >> they are anywhere from five dollars to thousands of dollars. one major difference is there is no renewable be because they are nft names. a lot of wallet apps are working with us to make sure that everyone who downloads a digital crypto wallet gets a domain name so they have an easy endpoint to deposit money into their application. there will not be a barrier to entry if someone wants to get on. we are seeing sales for these domain names in the hundreds of thousands of dollars for the big ones. >> if one of your investors is online talking about what coinbase or crypto is to web3. >> the simple use case is

sending cryptocurrency. if you have 20 or 30 different cryptocurrency addresses, you won't be able to remember all of them. that's like ip addresses on the internet in the early 90's. everyone replaced those with domain names. this is like that except for individuals. for a.com domain name, we think it's going to be every user on the internet which is 3 billion people with an nft domain to make it easier for people to find information about them, verify information, and send them money. you asked me what am i going to be using it for, we think it will allow you to have a portable reputation on the internet. we have two main problems. one is that you can't own anything. the other is that all of these problems around fraud, spam,

bots, if you had portable reputation you could solve that problem. for instance, my dad bought tickets on ebay and it happened to be from a scammer. that scammer can go and start selling fake tickets or whatever on a different website like amazon marketplace. because there is not a consistent reputation across applications online, they can't check to see if that person is potentially doing fraud. if you had the reputation that you are caroline. nft on every platform, you have a consistent reputation and we think that makes the internet safer. >> this is a time where valuations of crumbled. did you have to downgrade a little bit when you started having the conversation? >> we have seen cooling across the whole market.

we're just fortunate enough to be working with investors who have been in the space for a long time. they have been investing in crypto for more than 10 years. if you're in it for the long run, i think you will be fine going out funding right now. it is significantly harder than 2021, but that's ok. if you're here to create chili for users instead of speculation, you will still be able to figure it out. caroline: thank you so much. coming up, hollywood has a complicated relationship with antiabortion states. we will talk about what it means for business in their states and if pushing back or not. bloomberg. ♪ -- this is bloomberg. ♪

caroline: we want to look at the relationship between hollywood and antiabortion states. we consider media companies and movie stars to be outspoken about the overturning of roe v. wade. we want to talk about the tension with our media and entertainment editor. what i'm interested in is that we are not going to take sides. this is a nation divided. talk to us about how there is a tension between employees and the decision-making process of spending money and making movies in states where employees might feel it doesn't reflect the way

they want the viewers to reflect. >> it's a hard position for these big media companies to be in today. hollywood sees the business as part of culture and leading culture. when there's a big social issue, they like to be at the forefront of that. at the same time, for each project you see, each television show, each movie, these take years and years of planning. they are incredibly expensive and every line item on the budget that can be removed is going to be good for the overall production. sometimes the financials mean the difference between something getting made and not getting made. states like georgia that have tried to put in more restrictive abortion laws have been really good at being the cheaper option

for some of these companies. they have to balance getting their projects made but at the same time, they have a lot of employees that are pretty outspoken. they have business partners like actors and directors that are outspoken also about their values. they are trying to both run the companies and keep these employees happy and not make this a talent retention issue. caroline: the talent retention aspect is interesting. are there other states trying to woo the making of tv and movies? >> i did a lot of reporting on this and i was surprised that the other states that are not seeking to restrict abortion rights, they are not selling themselves quite as much. i talked about one interesting

case about a film called eric leroux. it was a project that was set to start filming in arkansas. that's a state that has some of the most severe were abortion restrictions. the filmmakers decided to move it to north carolina, a more free state. the film officials like talk to in north carolina were saying come here, they were just saying that's great but we heard about it from you in the press. they aren't trying to make the pitch that hard. it could be something that affects the business long-term. if people are pressuring the executives of this company, if they are finding actors that are going to attract people at the box office don't want to film in the states, it could be a benefit for other states or other countries that both have

financial incentives for filmmakers and are more free on the abortion issue. caroline: thank you so much for spending time outlining the depth of your reporting that went into it all. that does it for this edition of bloomberg technology. we have special edition coming up monday. we will focus on antitrust legislation and big tech. you don't want to miss the conversation. meanwhile, catch our podcast. you will find it on the terminal and anywhere you get podcast. have a wonderful weekend. it this is bloomberg. ♪

>> lots of talk about the fed, economy, china, european natural gas. how much really changed