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

emily: i am emily chang in san francisco. coming up in the next hour, could be the secret to a peloton rebound, the bike maker debuts its long-awaited rower. while customers spark over more than $3000 for it? it will discuss. plus web three meets the 5g and efforts of its kind, t-mobile is teaming up with anova labs to launch the first crypto powered mobile service. it is trying to tackle everyone's energies crypto problem one blockchain at a time. the cofounder is with us. all of that in a moment. let's get a look at the markets. another tough down day for tech stocks ahead of the key fed meeting wednesday. crypto also selling off.

ed ludlow is here with the biggest movers. ed: there's fed positioning's, we are coming up on monday the worst week since january, more red on the screen of this tuesday. nasdaq 100 down .9%, down 13% from its amid august. you see underperformance in the semiconductor sector. yields pushing up multiyear highs. the 10 year reaching 3.5%. the shorter policy sensitive curve, heading to 4%. we are expecting a 75 basis rate hike, when the fed meets, and that will take rates to the highest level since the 2008 financial crisis. crypto caught up in this anxiety. bitcoin the most notable at one point -- reaching 19,000 u.s. dollars. at the same time there is news out there, about the ev sector ford saying inflation around the world and supply chain pain is going to cost an additional $1

billion, down tow .3%. it's biggest drop in 11 years. that market reaction to that ford news but it reaffirmed its for your guidance. a deal between gm and hertz -- they will buy ev's from a gm over a five-year period. we will dig in that later the show. i want to keep an eye on peloton. the long-awaited rower has been launched. we look at the chart behind me. the stocks are suffering on tuesday. there people what the peloton bike that are working for drawing close. i know that is a lot of chatter in the market. emily: ed ludlow, thank you. peloton launching its long-awaited rower, aiming to expand the fitness companies appeal. it will start taking orders for the peloton row and begin initial deliveries to u.s.

customers in december. our very own market joins us for more details on this. you have been reporting on this for a long time. our customers going to pay for it? >> i think peloton has a group of consumers that want to build out there on home gin -- gymp, where they own a tread and they subscribe to their $44 package. in terms of the overall telethon story, i don't think the row device moves the leader -- needle. this leads -- this is a u.s. launch, it comes between $500 and $1500 more than main competitors but it is everything you'd want from peloton's rowing machine i don't think rowing has a place in the market that a bike or tread bike where people will rush out to buy the thing, unless you are one of the fitness enthusiasts. there is limited appeal compared to their other products. i don't think this it changes.

the peloton story very much. you see that in the stock today. still down about 3%, down 1% for the week. more hardware, and more product offerings is a good thing. one interesting point i will make, is that they are pushing the content subscription. if you buy a bike, you get a few basic classes for free and you don't need to pay the $44 a month telethon subscription. not the case for the row. to get any of the content for rowing, need to pay the fee, which could it drive additional revenue over the long-term. emily: what does peloton think about how much this is going to change their situation? do you know how much they're projecting? do they think this is more of a niche product or do they have higher hopes? >> when peloton announced their most recent earnings about a month ago, tucked in several paragraphs, is the change to the reporting structure. there are no longer guiding full years in advance. so, although we have q1 earnings

coming up later in the year, we don't have any estimates for the fiscal 2023. this product will not officially start shipping until december, which, the company has fiscal q2. we have no way to know how this is going to benefit the company financially at this point. my guess is given the launch will be u.s. only, given the high price point, it will be pretty incremental, probably throughout fiscal 2023. emily: who can guide it that far ahead? apple did away with guidance long ago. should that be our expectation anymore, especially in a massive downturn? mark: my personal opinion is that apple, has made a decision not guiding. if i'm running a company, you basically only want to do as much as you are legally required to do. apple went away from iphone unit sales a few years ago. that coincides with the greater

focus on revenue versus units, as they raised asp's. you are seeing a similar thing with peloton, for the individual unit, some of the individual numbers, the longer forecasts, are not as important as the overall revenue number. the other thing i will say about telethon forecast as they have been missing guidance for the last several quarters at this point. things have been so influx for the company. it's impossible for them to really guide more than a quarter out. they need fundamental changes to their financial structure and their operational structure. they've had many layoffs. i think they have laid off 4000 people across calendar 2022 at this point. clearly, many changes being made to their call structure, moving away from in-house logistics and operations. they have stopped manufacturing equipment in house and her of what -- going on outside many fractures. they're relying on some of the same manufacturers apple uses. so, you're seeing a big cost

structure change. we'll hear more about how those cost changes will improve their bottom line sometime in october or november. emily: you've got other companies like soulcycle moving in and trying to take advantage of peloton's struggles. are they going to be turner -- trying to turnaround in a different fitness landscape? mark: nor track is looking, what they saw the peloton price point. i checked the website and there rowing machines at top out at $1800. the products are comparable in some of their functionality. peloton is pushing their ar -- ai, there is few personalization and tweaks in the row, where the use ai in your own personal pace targets that you set to interact with the content that plays on the screen. depending on your pace a target or who is using the machine, the

instructor will give you different goals. it's actually cool from what i have been told by the company about how works. that is one key differentiator. the question for many consumers is, are those nice to have, that more personalization, does that -- is that worth. the extra thousand dollars for those paying $18,000 for a rower, maybe another thousand dollars is that much especially if you're in the ecosystem and that gets you access to content on all of your peloton machines. i wish i knew how money people own more than one piece appellate on equipment. that would be a key metric. emily: my sense is it is not a huge number but maybe times are changing. mark gurman, thank you so much as always for your reporting. the investor known as the spec king is winding down two of his leg check company -- cut blank check companies.

he is going to return more than a billion and a half dollars to investors. he says valuations and volatilities, the biggest barriers, the closing deals. coming up, we will continue with our coverage of climate we can talk about investing trends, including new technology that can stop wildfires before they get out of control. that is next. this is bloomberg. ♪

emily: another dry summer in

california with the state continuing to experience longer wildfire season's as a direct result of climate change. while it is possible to be on the lookout for fire, it is often already too late by the time they're spotted. a new start up as devised a computer vision enabled system to catch the beginnings of wildfires before they become mega fires. it is called panel ai, it has a $20 from initialized capital -- $20 million from initialized capital. talk to us about how the technology works. a lot of these fires are starting in the middle of nowhere. >> what they have is a large hardware software cloud form that enables them to visualize a huge range of territory, that is paired with software that identifies wildfire fire structures, smoke plumes, you can regulate where they are starting from.

so i think it is really, i grew up in california it is important to know that wildfires are natural and normal part of the california ecosystem of our environment entries are evolved to burned. our most iconic plans, sequoia trees, require fires to reproduce. over the years combined with climate change, a modest change in temperature influences the lack of humidity and creates longer dry seasons which enables a small fires to get wildly out of control. so, being able to have a system that enables you to recognize when fires start within 15 minutes of them starting on one of these high-risk days, it can allow us to manage our wildfire issues more productively. that said, we are a system where

it will happen more often. we are going to live in a world where we will have more prescribed and managed burns as well. emily: kim, you used to be a tech journalist before you became an investor. talk to us about the pivot to climate investing. >> you know, i think if you look at my body of work, i've always been very engaged with these tangible problems that affect everyday life, whether that is housing affordability, job mobility, socioeconomic mobility. climate is obviously increasingly a piece of that. it's imports and -- important to note, we have been investing in companies that address climate change and emissions. there are many companies in the portfolio, which helped thousands of buildings manage their energy usage and reduce emissions. we have a company that had a breakthrough on energy, with

low-flying satellites, to have accurate imagery of our terrain emissions and heat sources. and i also let a deal in the cul-de-sac, launching its first community at the end of the year. so, we have been doing it for a while. but, for course, climate is having a second wave. there was an earlier wave 10 or 15 years ago, when earlier venture capital firms doing cleantech. in the last five years it is becoming undeniable. it is here, it is now. we remember the orange day from two years ago when we walked outside and we couldn't see the sun. we cannot ignore it anymore. therefore, we have to come together as a society, whether that is to the incredible $370 billion inflation reduction act. we all saw to do it in the

private sector with lots of entrepreneurs attacking all kinds of the problem. emily: right. remember the orange day well. our -- we are in the midst of a massive downturn, is that dancing momentum and climate investing at all? >> it's interesting. climate tech is one of the spots that is still very competitive for deals now. there's a lot of capital flowing into the earlier stages. i think there's a number of pressure for that, which is the scale of the problem. but also, there are a lot of women in partners into a lot of different firms -- funds that want capital. we are seeing -- at least in the early stages, lots of climate deals are continuing to happen and continue to be competitive. emily: you have commented and reported on san francisco culture for years. i'm curious what your take is on the recovery, or lack thereof of

san francisco coming out of the pandemic. what is your sense of how hard tech culture has been hit? if it can recover? and if there is a reason startups need to be in san francisco anymore. >> sure. i have many thoughts on that. on the startup side, i have shared a lot of data from a portfolio during and throughout the pandemic showing we went from san francisco being the leading place companies had headquarters to distribute, remote team surpassing that. san francisco still the number one physical destination that companies wanted to be located in. on the government side, i mean, these are the great 10 years the city had in terms of tax revenue, companies being founded there. it overplayed its hand.

it would have been really important for the board of supervisors to come on earlier and say they want to partner with employers here. even office, any of the city wants companies here. i know that doesn't make or break a decision. but it is something you can compare and contrast leadership with different cities and see what people feel excited about being in. i think that matters a lot. emily: well, appreciate you joining us. initialized capital partner, kim-mai cutler. good to have you back. nasdaq is making its first major push into crypto. the second largest stock exchange will offer companies bitcoin, this will put nasdaq in competition with crypto firms

like coinbase and that go to a certain extent. coming up, a huge day for the car industry with a big ev order from hertz, and a $1 billion warning from ford. what is that all about? we will tell you, next. this is bloomberg. ♪

emily: shanghai is being touted as china's new silicon valley. it is quickly becoming a semiconductor and ev manufacturing hub. charlie explains. >> this is a suburb of china's center of said high -- shanghai. tens of millions of dollars have

poured into the town. i am currently in the central area, which is part of the shanghai free-trade zone. three years ago, president xi identified it as a hub for future industries from artificial intelligence to vehicles, to chip vehicle texture making, that is industry china wants to dominate. there also at heart of the competition between china and the u.s. china needs to import, for $30 billion of semi conductors annually to build iphones, drones, laptops and other electronics. it has very little i am chip making capabilities. that in turn is forcing the chinese government to step up in digital innovation and boost, self sufficiently, in order to rely less on foreign technology in the future. emily: charlie zhu ther.

hertz announced it would buy 75,000 ev's from gm. gm's'rival fortis stocks have sunk as global inflation hurt. e ed can you square the circle for us? it's been a huge day for the industry. ed: another piece of information help the stock market. hertz is interesting, they have been very active in trying to electrify their rental fleet. they've already got deals with others. but they have this objective of 25% of their rental fees being electrified by 2024. this is quite aggressive at a time where gm's transitioning to electric drivetrain, over a five-year period is a lot of cars. it's not just one of their lines, they're talking about buick, chevy. they will start shipments over the ev as soon as the first

quarter of next year. this seems tangible. but look at the screen, it didn't do much to support the stock on tuesday. emily: so, talk about ford. that is quite a big drop. what is going on? ed: ford, this was a biggest drop in its stock in 11 years. what they did was revise guidance for the current period. inflation around the world is meaning higher cost for them and supply chain pains continue, meaning there are part shortages. the net result, 40,000 to 45,000 ford suvs and pickup trucks sitting in a parking lot somewhere that are not ready to ship. the important point, ford reformed it's for your guidance and said they would be able to get the missing parts back, put them in these vehicles and sell them by the end of this year. clearly the market and believe them. when you look at the severity of that stock drop. emily: is it semiconductors that

are causing the real pain? ed: this is fascinating, because in the statement, for didn't say much at all. they didn't specify. all we have to go on is that semiconductors have been an issue throughout the year and even before that. gm, earlier in the year, gave a similar warning that they had in these -- this inventory of not shippable cars because of missing cars and semiconductors were a part of that. we don't have the specifics. we knew some sections of the semiconductor market, specific types of chips were improving, but we hope to get that granularity when ford reports earnings next month. this was them front running it. this was a preliminary update to their guardians. -- guidance. emily: ed ludlow. you will continue to follow it. thanks. coming up how solana is tackling crypto's energy problem and the first crypto powered mobile network ever.

solana co-founder is with us next. nova labs ceo joins us on a big deal with t-mobile. this is bloomberg. ♪

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emily: the salina foundation has released the third edition of an

energy impact report. emissions rose 26% in the past six month driven by overall growth in its validator network. here to talk about that and more, the solana co-founder and sonali basak. thank you for joining us. guest: if you look at the overall energy versus action, it's less than a google search. it's basically using a web to service. -- web two service. emily: what further steps can be taken to reduce energy on the blockchain that you are not already doing? guest: as a network matures,

hardware releases, next-generation computers are energy efficient. this will naturally get cheaper and faster over time. sonali: you find that people who believe in bitcoin are relying on mining. when you talk to investors, what is going to be pushing people into more environmental concerns? guest: this is important for applications. users care about energy efficiency. we see web three companies pick solana because of this. sonali: we are a couple of days

away from the great merge, but does that mean for you? guest: even post-merge, ethereum is less energy efficient. i'm excited by the fact this will finally put the debate over whether this is secure. it will prove to everyone the technology is not mature enough to handle very large capitalization for a network. emily: how far could you go in terms of rewarding the validator's our computers that themselves use renewable energy? anatoly: this is not something we have looked at yet. overall, the network uses so little energy. we have our own offsets they

cover the entire network. emily: when you look more broadly, crypto gets a bad rap for its energy use. do you think that is deserved? anatoly: mining is energy intensive. folks need to understand bitcoin mining woodwork in a world without fossil fuels, fossil fuels are the bad part. it's obvious to me as an engineer we should work with technologies that are more energy-efficient. i am bullish on solana. sonali: if you think about how nfp's -- there are days you are competing hard. there are days where you see more and fts by dollar volume even more than ethereum. how do you see the competition laying out? when and do you think you can be

the more dominant player? anatoly: i want to congratulate the company that is a premier marketplace for record-breaking volumes. that has been amazing. because it is so cheap and fast, when folks experience a, they feel like they are using a regular web application and it's hard to go back. i hope the trend continues and accelerate. sonali: nft's are under the eye of regulators, what type of regulatory risk is there for both of these products tied to

ecosystems? anatoly: folks have to be careful. the vast majority are community-based things that are fun and brands around an idea of a shared profile. those are pretty far from what most would consider a security. you need to be careful. emily: i have to ask you about ethereum. i'm curious what your thoughts are and if you think it makes the solana blockchain most competitive. anatoly: it does not really improved scalability of the network. if you look at the number of transactions solana handles on a daily basis, that's more than

not just ethereum but all blockchain's combined. it has a long way to go with scalability. emily: does solana have plans for an upgrade down the line? anatoly: it's a community driven project. there are four teams working already. every release gets cheaper, faster and more reliable. it has a roadmap, make the next release better than the current one. emily: thank you so much for joining us. the cofounder of solana labs. coming up, how crypto and web three are colliding with mobile carriers. that is next. this is bloomberg. ♪

emily: the world of web three and five gr colliding. t-mobile has struck a five-year agreement for a new cellular experience. nova labs plans to launch helium mobile, customers on crypto rewards. here to explain is the ceo. how does this work? guest: helium mobile -- think of

it from a consumer point of view , we have a nice at, there will be a seamless sign up. the key difference is users earn currency while they are using the network. they get to build the infrastructure they are using. think of it like airbnb or over, you are part of the infrastructure and building it. emily: if you want to use this, how do you sign-up? guest: there is a wait list. once we launch, there will be a mobile app you can use. install the app and get going.

if you have an older phone, we will send you a physical phone. emily: talk to us about the challenges of creating a crypto powered mobile network. how is this even possible, what kind of troubleshooting will you have to do? amir: we proved with the network we launched in 2019 that people-power networks are a real thing. within three years, there are one million of these hotspots across the globe, building a network for low-power devices. this next step is moving into the cellular world. we use roughly the same tactics, people have shown us they are interested in infrastructure and not just being a user.

we will do roughly the same thing we did in the last go round, people are incentivized to build miniature cell towers on any property they have access to and they get rewarded for doing that. emily: obviously, helium is well known for its network that helps connect low-power devices. i am curious what else could be possible using this technology? amir: the cellular network. when we designed helium, cellular networks were on our radar, the technology and regulatory environment has allowed us to do that. in the future, you can expect to see other types of wireless

networks. helium is a community-driven people power network and people will propose what they want to do next. we are excited what we are doing with helium mobile. it is the first attempt at trying to do something like this. emily: you have considered switching mobile labs to the solana network. where did you end up on that? amir: the helium network is governed by its users. there is a proposal to rearchitect the way helium works , the architecture to be simpler and faster. we are proposing moving the blockchain function because the

cost is extremely low, transactions are fast and there is a diverse and large ecosystem that we don't have access to. emily: we will keep watching how this all unfolds. the ceo of nova labs. thank you for stopping by. coming out. youtube makes changes to lure creators. this is bloomberg. ♪

emily: youtube is doubling down on the creator economy and launching revenue-sharing. this was announced earlier today, let's break it all down with my next guests. they are talking the next generation of creators. they were part of this event earlier today and join us from palm springs. thank you so much for joining us. let's start with you. there are new benefits, creators can make money earlier, find the music they want. how does this land with you? how much of an improvement is this? >> it's a huge improvement.

we find distribution, audience. we don't rely on it for monetization, but that is something we can focus on. when i look at this announcement, it's about the fact that now there is a lightbulb to go off for new creators that they can get paid by the platform and build a career. emily: that said, youtube is upping commission, taking 55%, up from 45%? what do you make of that? >> the reality is there is a little more nuance in longform content, especially when it comes to music. music is a big part of short form content and youtube has decided to take on the cost, so at a glance, you look at it and say wait a second, this is

flipped, youtube typically takes 45%, but what they are doing is allowing graders to use music and cover the license fee. the cost they are incurring, i think it makes sense that in this specific instance it flipped. emily: there are a lot of platforms out there vying for your time and other creators. what didn't you hear from youtube that you would like to hear? >> to be honest, i was excited about the opportunity for revenue-sharing. it's important we are growing businesses as creators and we want to be partnered with platforms we are losing -- using. creators will want transparency about how payments are dulled out because youtube has always been transparent.

that is what we're going to see. an understanding breaking down from the creator side of how we are getting paid. emily: you are both on youtube and tiktok. how do they compare? >> there is one fundamental difference, we have been on youtube for 10 years. we have always been in partnership with the platform. when me -- when we make money, youtube makes money. that's truly a partnership. when it comes to tiktok, it's never really felt like a partnership, it's unclear how you build a career on tiktok when it comes to platform payments. we have seen people build audiences and transition to youtube. in my opinion, when you look at this, building a career on

youtube, there is a different depth to the audience and platform engagement when it comes to how the platform pays you. additionally, when you look at tiktok, they are not going for specific creators. if you take the top creators off tiktok, it is still enjoyable. if you go to youtube, it's a different place. youtube is a lot more creator focused. that comes across. emily: as you think about where to invest your time and money, how do you see the creator economy evolving? there seems to be new opportunities, platforms, new ways every day, how are you making those calculations on a daily basis? >> there is no doubt the

majority of creators business is advertise days. >> happening but going to increase is more direct to consumer work creators are launching their own brand and audiences have a loyalty to them. emily: you also do a podcast series called creator support, you answer questions. >> i am so happy you brought up creator support. it's fun, we get the pulse of what the problems are for aspiring creators. what is important to note is this is the land of creative entrepreneurship, and a lot of these young creators are first-time entrepreneurs. a lot of questions are around pricing. legal.

taxes. a lot of the stuff comes down to fundamentals of entrepreneurship. that is what is really important. if you were looking at the creator economy, it's a form of entrepreneurship. that is what is really important to recognize. the problems we are facing are the same problems young startups and entrepreneurs face. beyond that, it's a creative business. you get a lot of questions around purpose. how do i lock into something i can do for the next 5, 10 years. not just get involved in a viral trend, how do i turn this into a long-term career. some of that is yet to be seen. creators who have done that for a long time, we're seeing an ability to evolve.

emily: what is one piece of advice for the aspiring content creators out there, that is not obvious, especially after seeing these changes from youtube today. >> this is a question we get a lot. purpose is the advice iowa's give. if you are going to be a content creator, make sure you have a true understanding of why you're doing it, the audience you want to serve. what are the communities you are existing in in real life. it's important you have that baselevel understanding that what you are doing by making media online is speaking to actual people and providing them some value. i encourage new creators to

start with your life, the communities you are a part of, the communities you want to serve. once you know that you will have a much longer trajectory as a creator. emily: i like that. thank you both so much for joining us. you can catch them on youtube and tiktok. that does it for this edition. coming up wednesday, and managing partner is joining us. don't forget to check out our podcast. i am emily chang in san francisco. this is bloomberg. ♪