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

♪ ed: i am ed ludlow in san francisco come in for emily chang. both the s&p 500 and nasdaq 100 posting the longest streak of weekly gains since november. but earnings have shown a mixed outlook for the rest of the year. is the tech rally going to last? will home depot target lowe's? next week is big for earnings reports. new data suggest we are turning a corner when it comes to e-commerce. and competition for electric semitrucks heating up after the senate passes and initiative to boost the transition to clean energy right now, pretty much

tesla versus nica, but tax incentives could bring in more players. first, the federal bureau of investigation seized classified records marked top-secret from former president donald trump's mar-a-lago home, according to a copy of the warrant seen by bloomberg. our managing editor for bloomberg news in washington, wendy, thanks for joining us. let's stick to the basics. what did we learn from the unsealed documents? wendy: not as much as one would hope. we did learn they got about two zone did -- about two dozen boxes of documents from mar-a-lago. we learned some were top-secret or even higher sensitive, compartmented information. which means it is only supposed to be in a closed room, sealed off from the and all sorts of

other interference. and those were sitting around mar-a-lago. we also know they were searching of evidence for violations of three crimes, including a segment of the espionage act. i am not saying trump is going to be charged with espionage, but there is a subsection of that that relates to mishandling classified documents. we don't know there is evidence of that, we just know they got these documents. ed: what is the concern? what other doj investigators looking for? wendy: this all started when the national archives, which keeps presidential records and then gives them to a president's library, they have been working with trump representatives throughout 2021. they got transfer of 15 boxes in january this year, began looking through them, and realized there was classified national security information. we don't know exactly what that

means yet. and that prompted the archives to reach out to the justice department and say, you may want to get these back. that is what this action was. we don't know if it is going to relate to any cases against prop. it depends on what the documents actually show. you can be sure the justice department will be combing through them this weekend. ed: it is always a question as to what happens next? wendy: we don't know is the answer, i am afraid. we know that they will go through these and try to figure out what was in here and what crimes might be violated. then, they will decide whether to charge or start talking the former president. ed: we continue to watch your coverage over the weekend, wendy benjamin's and of bloomberg -- wendy benjaminson in washington for bloomberg. katie greifeld, ending the week

strong for tech? katie: pretty strong. this is single stock split but look at indexes. the s&p 500 finished tire. nasdaq 100 finished tire as well. you get c bonds rally little bit, just five basis points or so. i am going to continue to fold that into this risk on mood. you saw bitcoin out a little bit of again. the board has flipped to the after-hours trade, but bitcoin is higher. it is $24,000 a going, we haven't been at those levels in a little bit. and this was a big finish to what has been a big week. look at the nasdaq 100, this was the fourth straight week of gains. if you look at the start, a lot of red on the screen, that is the longest, consecutive weekly rally since november 2021. i don't know, maybe we are at the ball market -- bull market, but it has been quite a run for tech stocks. look at individual names, this

is lower today after news this morning about china delisting five of its largest state-owned companies from u.s. exchanges. that weighed on adr. you had ships coming back, you had peloton surging on a mark gurman scoop that they went to cut 800 jobs, shutdown stores, raise costs of products, this big overall at that company. tesla is rallying almost 5%, maybe part of the broader, risk on mood in the market, we will continue to watch that story. but a big move for tesla. ed: that is one m&a report, bloomberg's katie greifeld in new york. peloton big move, tech broadly outperforming equity markets. i am glad to bring in maria

elena lagomasino of we family offices, which has $15 billion of assets under management. mel, what is your take away this week from the market? mel: it has been a great week. it actually has been a great month for tech. and i think it has to do with the fact that people are starting to believe we are going to get inflation under control. inflation is what will kill the earnings of tech companies, so i think the mood is positive because they see that inflation is going to come down. ed: we are breathing a sigh of relief here in san francisco at the bloomberg bureau now that the book of earnings season is over. if you were to draw a scorecard for earnings, particularly with mega caps, what is your take away from this earnings season? mel: mixed. but in general, a lot of companies exceeded expectations

both on the revenue side and earnings side. the name of the game is knocking to be revenue. the name of the game is going to be earnings and what happens -- is not going to be revenue, the name of the game is going to be earnings and what happens with earnings. the big question with earnings is the next two quarters. that is why it is good news about getting control over inflation, that is what is causing this rally. ed: you know that historically, tech in the first half of the year, not the best play, but then does rebound. we have seen that in the third quarter. you expect tech to continue to have momentum? mel: it is hard for me to see it in the second half of 2020 two, but i definitely see it in 2024. ed: what would drive that? mel: tech is going to be the way to deal with inflation,

productivity. what is going to happen -- winco to help us with productivity is tech and you see all the big companies spending the on tech. we are going to see tech improve. the valuations, i think interest rates going up and the discount rate that is implied in that in terms of earnings has actually made valuations come down. but i think earnings, over time, will be great for tech companies. in slower growth periods, tech tends to do quite well. ed: you have been across the inflation story of the semiconductor space, what have you learned from chip akers the last couple weeks? mel: interesting, and i was surprised at some of the earnings and some of the forward guidance on the chipmakers.

again, as the economy picks up, there will be more and more demand and i think there is great opportunity. they did very well today. ed: i love speaking with you because you take a broad view of the technology sector and are always focused on cloud and ai. why is it that you see such opportunity and what is sometimes regarded as nascent spaces? mel: the opportunity for productivity with all these technologies is tremendous. or into more companies are using ai to improve their business models. more and more, they are going into the cloud. their computing power is going to grow exponentially and i think it is going to transform the way we work. it already did, after covid. we can't even imagine what some of those changes are going to be. ed: mel lagomasino, ceo of we family offices, great to have

you, happy weekend. we will see you soon. coming up, more e-commerce headwinds. i chat with poshmark's ceo. this is bloomberg. ♪

ed: shares of the online secondhand goods marketplace's mark raab percent thursday, biggest decline since may. the company gave a weaker than hoped sales forecast for the third quarter amid a changing global economy. but there were bright spots as user engagement on posmark jump

70%. joining us to talk about the future is posmark ceo manish chandra. the market is clearly focusing on this sales outlook. what were the factors around that pressure on sales growth? manish: if you look at our q2 results, we beat the guidance on both revenue and came to the midpoint of earnings. when we look into the future at q3, one good thing happening is that we are starting to see our growth and our rhythm and cadence be more like 2019, which is free covid. that is a healthy thing for posmark that people are going out, going to events, going to weddings, going back to school. it is a great thing because you need posmark to rotate your closet and people are going back to their closet and are rotating it. that is a good thing. but we want to be cautious.

it is early. we want to observe it for a few months and that is again reflected in our guidance. ed: remind us how posmark works, you are paring sellers of secondhand goods with buyers of secondhand goods. tell us about the profile of the user on the platform? manish: posmark is unique in the sense that allow you to turn your closet into a shop. it appeals to millions of people who have a closet. almost everyone has a closet and excess stuff to sell. we make it easy to take the closet and start selling it. we provide everything built into the platform -- shipping, payment processing, etc. and the beautiful thing is, the item goes straight from the seller to the buyer. we hold no inventory. that allows us to hold a stream link dynamic assortment, which has been a strong point in this changing sense of fashion going into the pandemic, coming out of the pandemic, from active were to work where to back-to-school

where to back-to-school wear. on the flipside, we have people who are shopping these closets who are getting value and bargains but also access to a wide assortment. everything you want, we believe it is in somebody' is closet. he it altogether and that is posmark. ed: i want to get into the psychology the consumer. what kind of lens do you get into the health of the consumer? are you lose -- are your users shopping on your platform because they feel the pain of inflation rather than new products? what macro characteristics are you seeing in your users? manish: the first thing is, consumers are looking for value. consumers are also looking for value -- always looking for value, but in these inflationary times, they are especially looking for value. number two, consumer tastes are changing and a lot of times, traditional retail is not able to keep up.

you are seeing a supply chain famine and now a retail store glut and there is a mismatch of consumer supply and demand. what we see with posmark is this up --'s mark is this ability to dynamically that apply and demand. people are looking for the latest, trendy things and trends are changing. the great thing about poshmark is that people can also make money and as that people look for extra source -- and as people look for extra sources of income, poshmark can do that as well. ed: what is a poshmark party? manish: virtual parties online where people are selling together. sometimes, hundreds of thousands of people will come together. i have seen parties in the last week that have hit 10 million items listed in a single party from across the country. they are really a group-selling event, people buying and selling

together. and then we take them physical, we hosted a party in l.a. a few weeks back and next week, we have wendy new york city and have hundreds of sellers coming together, they connect with each other, help each other, learn from each other and get inspired. and we have new sellers and help them activate their closets and people learn to poshmark and learn something called closet concentration where they can grow their online business faster. ed: our bloomberg intelligence analyst poshmark poshmark is also excited about's -- analyst is also excited about poshmark's potential for growth. manish: our canadian business just hit 4 million users. more than $1 billion of inventory listed. that market is coming along. we launched in australia and india during the pandemic. we are seeing engagement and physical events starting to build communities there. so, we believe the paradigm of

finding the future of fashion inside your closet is well aligned in not just the u.s. and canada, but other countries as well. ed: we will look for updates on those new markets as they come online, poshmark ceo manish chandra, thank you for the update on the secondhand goods market. meanwhile, the panera bread cfo will join the same role for go past, according to sources. he was at we work as head of a planning operations and he also served at yum! brands' china business but coming up, the european drought will further raise energy prices and disrupt trade. this is bloomberg. ♪

♪

>> the storage itself is not sufficient. >> we are facing a crisis. >> produced by the cutoff of russian gas, but it tells us a volatile fossil fuel rises are. >> it may result in some disruption. >> i cannot imagine tens of hundreds of gigawatts of renewable energy before winter. it is a measure of saving energy, securing sources. >> there should be more obligatory measures to reduce consumption. >> the first step is to become independent of russian supplies which can only be managed by additional imports. >> we are seeing a reduction in gas reduction about 10% in the eu. >> the effect of the crisis will that europe is further down the

path to emission reduction. ed: commentary on the energy crunch europe is enduring. things are not much better on trade. germany's rhine river dropped to a level that could transfer -- disrupt the transport of fuel throughout europe for months. bloomberg's guy johnson explains. guy: here in europe, the rhine river has become impassable. it is a critical waypoint west of frankfurt. we have been anticipating this for quite some time. you can see water levels as they have been dropping the last few months. they have now dropped through the critical, 40 center meet -- centimeter point. that means the river is no longer navigable for large barges. this is crucial for europe, not just germany, but for the whole of europe. let me show you the map. we have rotterdam here on the coast, the rhine river runs through germany, cologne, west

of frankfurt, kalb and the rest of germany toward switzerland. this is a hugely important waterway that transports oak on some things up and down germany and the whole of europe. think about coal, gas, diesel, all these things go up and down this river. big chemicals companies are to the east of kalb. they will now be restricted. the cold required to be floated on the river on barges will now see those supplies restricted. europe is already facing a massive energy crisis. drought in europe is lowering these river levels and is only going to exacerbate that problem

then put further pressure on politicians to do more to deal with this economic crisis that is looming and getting worse as we head towards winter in europe. as of today, the right is now closed at kalb. ed: state-owned companies are trying to delist from u.s. exchanges, over a dispute over whether american regulators should audit chinese companies that are listed in the u.s.. these are the three companies. this company has now lost more than $4 billion on side deals set up with softbank to boost his compensation. the japanese billionaire took the unusual step of establishing personal space and softbank ventures in recent years. that was mixing the company and executive interests that drew the ire of investors. amazon, oracle and other data providers were pressed by a group of lawmakers about how

they sell mobile phone location data. companies offered assurances that the information could not be used to track them in seeking abortion services. the supreme court decision to overturn women' s federal right to abortion sparked concern that location data can be used by law enforcement in states that outlawed or restricted abortion, to prosecute people who seek reproductive care. coming up, the retail earnings bonanza next week. we take a deep dive into that, e-commerce trends and much more. this is bloomberg. ♪

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♪ ed: breaking news and headlines crossing the bloomberg terminal -- the house has enough votes to send a 430 $7 billion tax and

drug price package to president biden. the inflation reduction will designed to transition to clean energy and reduce costs. more on the bill's impact on green vehicles. this is "bloomberg technology," i am ed low in san francisco. for more on peloton, let's bring in jackie, what have we learned? jackie: for customers, prices are going, to be hiked up, kind of a reverse -- going to be hiked up, kind of a reversal in april -- reversal from maple -- reversal from april when we saw cuts. they are trying to shift costs to hire-margin memberships. it is expected to impact 800 million people, mostly concentrated around customer

service and distribution and delivery type functions -- 800 people, mostly concentrated around customer service and distribution. this is an overhaul of the cost structure and redirecting more better research and development. they outlined this rationale that you need to spur innovation to spur revenue growth and that is going to be key, especially when they have been burning so much capital. ed: the ceo said in an internal memo that cash is oxygen and oxygen is life. they are clearly worried about their economic health and did layoffs in february. estimated disappeared, are people not using peloton hardware anymore?

jackie: a couple of things. the economic outlook has shifted since the beginning of your. when he joined in february, it was already undergoing this major turnaround. but it wasn't sure where some of the pain points were. was it demand? was it a broader, grim outlook? what we are seeing now is, they signaled that they expect demand to soften. and when consumers spend is on the line, luxury product like peloton is vulnerable. so, growth is hanging in the fray. especially, they signaled that sales are knocking to be as strong. now, when it comes to saving money, this is where you have seen somewhat of a vacillating in strategy. when they upped the membership cost in april, that was signaling this is an area they want to cap. it is higher margin, it is

recurring, so we are you -- so you are going to see them lean into that as demand becomes more uncertain. ed: investors saw the stock dumping almost 14%. jackie, have a great weekend. retail earnings, lots coming next week from the likes of walmart and macy's. let's look ahead and talk about what to expect with nikki baird, vp of global strategy for retail company aptos, and also brendan case in dallas. brendan, this is the week for you, you are going to be drinking so much coffee bracing for what is to come, but we already have a good sense of what is to come, don't we? brendan: exactly right, a big week, but it is going to be a week that is a sequel to an announcement walmart made a few weeks ago, in which it warned profits are going to be down more than expected. the reason is that inflation is

hitting people hard, leaving them with less money to spend, especially on general merchandise as opposed to groceries. and i think what we will be looking for next week will be clues or commentary they offer about how they see the state of the consumer, and how people are going to hold up, or not, as the year goes on. ed: we already heard from amazon, the big, e-commerce giant. earlier, we spoke to andy jaffe. have a listen. >> we thought inflation was hard to attenuate in 2022. with the word ukraine, it went the other way, it significantly accelerated. so the cost of trucking, cost of ocean, air and fuel, it has gone up. no one knows how long that will take. ed: i played that soundbite

which was from the first week of june because it seems like, in some sense, the path of inflation, retailers off guard. did the industry get inflation at how the consumer reacted wrong? nikki: i don't know that they necessarily got inflation wrong. a lot of goods on shelves in june were things that purchased -- that were purchased before gas prices went up, that drove prices up in other places like a grocery where the supply chain is much shorter. but i do think it surprised them how much consumer demand there was, and how much consumers were still willing to spend as things opened up more. we are talking to see the impact of that now. july, i think, isn't going to be as strong in retail sales in june. some of it is inflation biting

into discretionary spending, but everybody is on vacation shifting spending to other places. ed: brendan, what is the e-commerce story here? because one of the big stories of the pandemic was changing how consumers behave dent how retailers had to adapt to meet that demand, what are we talking about now in the context of e-commerce? brendan: exactly right, that is good to be a big item this quarter and quarters to come. what you have been seeing most recently if that -- is that mass-market retailers such as walmart and target, you are seeing the growth rate slow down or even flatten for e-commerce demand. but people have run back to stores this year, they feel better from a covid perspective. another thing that is noteworthy about e-commerce demand this year is that, while growth is slowed, it it is still kind of holding its own. it has not gone away. and how fast that expands is one

of the biggest and most important questions in front of these retailers. and they are all investing a lot of money to be ready for that, under the assumption that the e-commerce part of it will be steadily rising if not soaring the way it did during the pandemic. ed: it is an interesting time of year in summer, where you feel some names will do better than others and the vacation trend and what it causes for earnings? nikki: earnings are coming up and people want to get out of their home, they want to sit at a hotel pool deck. that is running a lot of consumer behavior and it is interesting to see a much retailers anticipated that pandemic behavior was going to continue, and were taken by surprised when they shifted to

different priorities from a spending perspective this year. ed: one to watch next week. nikki baird and bloomberg's rendon case, thank you and have a good weekend. coming up, is the merge finally happening? this is bloomberg. ♪

ed: time for our crypto report.

ether jumped 10% this week for a sixth week of gains in anticipation of a groundbreaking software upgrade. it has been long awaited and news around it has been welcome my investors who pushed the token price up 80% over the past month. let's bring in bloomberg's david pan out of new york. everyone has been weighing in on this, the merge is close, a theory him is all over him is a going to happen? david: the merge has been on the roadmap of the ethereum blockchain developer since its inception in 2015. there have been several delays, and there has been suspicion about the time of the merge, but in conversations with investors and developers, they are more confident than ever that the merge will happen in the next

couple of months. there are a couple of reasons. first, we have seen the merge on the test nets being completed without major technical glitches, promising side the merge will happen in the near future. secondly, if you look at the revenues market, the ether options market, we are seeing a lot of investors betting on a price hike around the time of the merge. those things indicate that there is a fairly high confidence level for the merge to happen in the near future. ed: it seems investors are positioning this to happen, trying to get in because they anticipate further upward movement in ethereum. but there is a school of thought that when it actually happens, we will see a crash. explain that logic. david: there is a saying in the crypto space, seldom used.

at the end of the day, we have to remember the crypto market is highly speculative and a lot of hot, speculative capital will be flowing from investors into the market around the time of the merge, because they are in search of arbitrage opportunities in a time of volatility. another reason might be that there might be technical difficulties or glitches happening after the merge, which would discourage investors from putting more into the project. those are the major reasons, from conversations i have had with investors on developers behind the project. ed: bloomberg's david pan, have a great weekend in new york. coming up, congress now has enough votes to pass a four to $37 billion initiative, but can it help the eeev market bounce back? this is bloomberg. ♪

♪ ed: let's look at the week that was in electric vehicles. this company beat expectations last weekend is announcing an executive shakeup this week. rivian cutting its annual forecast saying it will have a larger loss on inflationary woes. now, the inflation reduction act which congress just voted to pass and pass on to president biden, which the president says according to headlines crossing the bloomberg, he will sign next week. the bill could boost electric vehicles in this macro

environment. joining us our guest who is focused on mobility and ev companies in the early stage. what is your reaction, now that this seems done? >> a few things are happening all at once. there was a lot of political jostling to get this deal through. it creates short-term confusion because it immediately changes the subsidy regime, changes the rules around it. that is going to create confusion in the near term. it does correct for some of the things that were problematic and pre-existing ev subsidies that it effectively reverses, that wealthy people were the ones that could afford high-end ev's like teslas, and people who want to be subsidizing with tax dollars.

now, the threshold is shifting on which vehicles qualified to be more focused on the middle class. but it is still fundamentally regressive. ed: i think your school of thought is that it misses the point, that actually, there is a broader section of the global automotive market that needs attention, needs more support to electrify. olaf: not just the motive market, think of the purpose of cars, to move people and goods. but what we should be focusing on if we care about climate, and the bill pays attention to them, one is american manufacturing and the other is around climate. if you care about the second bucket, the climate, what you care about is not electrifying nichols, making vehicles that people own and drive 4% of the time, but rather, electrifying miles. and the miles that matter are

driven by fleet, commercial fleets, trucks, delivery fans -- delivery fans but also fleets like scooter fleets in san francisco that have high utilization. and also for the delivery of food. doordash is doing 1.6 billion trips a year, why isn't there focus on commercializing and subsidizing those trips through these kinds of subsidies? ed: i want to bring in our bloomberg's kyle into the conversation. you wrote a fantastic story last week that points out that if you are on the west coast and want to take a classic american road trip in and ev, -- in any ev, it is not that easy -- in an ev, it is not that easy. kyle: the charging infrastructure here is still a big challenge.

we lag behind china, europe, south korea, even japan when it comes to the number of places to charge a new vehicle quickly, if you are outside the tussle universe. that is because we haven't had subsidies like this in the past, we haven't had robust policies like in scandinavia and in china, to put these out there in the wild, and not just at whole foods or at your office, but at the grand canyon, national park. that is still off the bat for someone maybe taking a road trip right now. so this bill speaks to that, but biden's infrastructure package also speaks to the $5 billion that is going to be start -- that is going to start to be deployed this autumn that should help cover the desert in terms

of where you can go in these vehicles. ed: the other area is the energy crisis and motivation to move to ev's. in your reporting in recent months, what do you see in the u.s. consumer in terms of their willingness to transition to the ev and their ability to afford the ev? kyle: affordability is the big shocker. these cars are getting more expensive now because of the supply crisis because dealerships can add on these market adjustment rates. and even if you are paying the sticker price, you are waiting months for one of these cars. that is the big issue. bill -- the bill that passed has a provision for dvds and everyone in the ev universe is thrilled about these. in america, nearly 80% of cars that are purchased are

pre-opened -- preowned. so to have something that speaks to that buyer could move the needle drastically for the space. ed: that is the consumer side of the story from kyle. your point is that we shouldn't just focus on cars, so if i said to you, go back and rewrite the bill as you would have written it, what would you have put in to keep those targets -- reducing emissions and advancing transition to sustainable energy? >> the focus on going to a national park or something is not how people use cars. cars right now are designed for a family to go on a picnic with truck space and room for all the kids in the car. but in reality, cars are being used to commute or four trips people take for retail and usually, there is only one person driving that car.

i wrote a book that is basically about the transition to what i call the trip economy, things that bring things to you or take you places, uber, amazon, doordash are all trips for a specific purposes -- trips for specific purposes. the trip economy gets rid of everything that is wasteful, unnecessary and the real opportunity is to not electrify the energy that is being used to move all that, but to change a much energy is needed in the first place to move people and goods for the economic purpose of going the economy, etc. if i were to rewrite the bill, i would focus on those types of opportunities, commercial fleets and how you accelerate electrification. if you look at where electrification is really happening today, it is buses in cities. close to 50% of those buses have

transitioned. if you look at amazon, you mentioned rivian before they made a mess of purchase of rivian vehicles, and that is the tailwind behind rivian, those are the use cases that have rapid adoption and those vehicles are the ones that are doing high amounts of miles. doordash is using e bikes in many cities to deliver goods and they are bundling the packages being delivered. so, instead of having consumers take individual trips to a store, multiple trips are being bundled into one right. similarly with uber, under pressure in london and much more quickly electrifying. if you want to shift electric miles from electrification, that is one thing you should focus on. ed: we could talk about this all weekend, perhaps. olaf sakkers and bloomberg's

kyle stock, thank you. that does it for this edition of "bloomberg technology." monday, we chat big tech regulation and the investing landscape. you can find our podcast on the terminal as well as online on apple, spotify. this is bloomberg. ♪ as a main street bank, pnc has helped over 7 million kids develop their passion for learning. and now we're providing 88 billion dollars to support underserved communities... ...helping us all move forward financially. pnc bank: see how we can make a difference for you.

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david: so much for the dog days of summer -- two major pieces of legislation, a river runs dry, inflation takes a holida