>> from the heart over innovation, money and power collide, and beyond, this is bloomberg technology with emily chang.

>> i am emily chang in san francisco and this is bloomberg technology. in the next hour, could it be secret to the pellet gun rebound? they debut their long-awaited orbit will customers spend over $3000 for it? we'll discuss. t-mobile teaming up with mobile app to launch the first crypto parrot mobile service. and how they are trying to tackle everyone's energy crypto problems. one block chain at a time. all of that in a moment. let's get a look at the markets. another tough day. that is the keep admitting on

wednesday. crypto selling off. here is an love the with the latest bloopers. >> we are coming often off day on monday. and more red on the screen this tuesday. nasdaq 100 down. now it is down from its peak. you see underperformance in the semiconductor sector. yield pushing up to multiyear highs. the tenure breaching 3.5%. they are heading toward 4% here. they are expecting a 75 basis point rate hike and that may take rates to the highest level since the fall of the 2008 financial crisis. crypto also kind of caught on -- caught up in its anxiety. now they are bridging 19,000 u.s. dollars. there is actual news out there. thinking about ev sector. ford saying that inflation around the world is going to cost it in additional $1

billion. ever as a result, down 12.3%. the biggest drop in 11 years. that market reaction there. they did affirm their guidance. and a deal between gm and hertz. hertz will buy 175,000 tds from gm over a five year time. we will dig into that late in the show. finally, the long-awaited rower has been launched for pellet gun. -- peloton. there are people with peloton bikes working to dry and closed. will this reinvigorate them? better get going. >> thank you. as mentioned, peloton is launching its long-awaited rower in an effort to expand the company appeal. it will start taking orders for the palatine row and begin

initial deliveries to u.s. customers in december. mark joins us now for more details. you have been reporting on this rower for a long time now. our customers going to pay for it? >> i think palatine has a group of consumers that want to build out their own home jen -- home gym. they may own a tread and they subscribe to their $44 million package. in terms of the overall palatine story, i don't think the ro device moves the needle. right now, this is aqs only launch. it comes in between 500 and $1500 more than the main competitors but it is everything you would want from palatine in a rowing machine. i just don't think rowing has that place in the market that a bike has what people will rush out to buy this thing unless you are one of those fitness industries -- fitness inducers. there is limited appeal to the other products. i don't think this challenges

the palatine story very much. they are down about 1% for the week. there is more hard work and more product offerings. one interesting thing i will say about the ro is they are pushing the content subscription. you do get a few basic classes for free and you don't need to pay for that $44 million a palatine subscription. to get any of the tailored content for rowing, you need this to drive additional revenue over the long term. >> what does palatine think about how much this will change their situation? do you know how much they are projecting? do they think this is more of a niche product? do they have higher hopes? cries when palatine announced to their most recent earnings about a month ago, this is the change to the reporting structure. although we have q1 earnings

coming out later in the year, we don't really have an estimate for their fiscal 2023. this product won't officially start shipping until december which the company has as their 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 even with a high passport -- high price point, it will be incremental throughout fiscal 2023. >> who can guide that far ahead anymore? apple did away with guidance long ago. should that be our expectation anymore? especially in a massive downturn? >> apple has been making the right decision not guiding. if i am 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 coincided with the greater

focus on revenue versus units. i think you are seeing a similar thing happen with telus on here. the individual units, some of the individual numbers. they are really not as important as the overall revenue number. the other thing i will say about the palatine forecast is they have been missing their guidance. things have been so influx for the company. it is impossible for them to seriously guide more than a quarter out. they made fundamental changes to their operational structure recently. they had many layoffs. they think they laid off about 4000 people across calendar 2022 at this point. clearly many changes being made to the call structure there. they moved some in-house operations. they stopped manufacturing equipment in house and they are relying on outside manufacturers. interestingly enough, they are relying on some of the same manufacturers that apple used. you are seeing a big structure

change right there. you will hear more about how those cost changes will improve their bottom line. >> in the meantime, we have these companies like soulcycle moving in. are they going to be trying to turn around in a totally different fitness landscape? >> i think nordictrack is probably licking their chops right now. the rowing machines top out at $1800. the product is still comparable and some of the functionality, palatine is pushing their machine learning integration. there are a few cool rationalizations and the palatine row where they used ai in your own personal targets that you sent to interact with the content on the screen. depending on your case target,

the instructor will give you different things. it is actually pretty cool from what i have been seen and told by the company about how it all works together. that is one key differentiator. those are nice to have but there is also that more personal addition, that work for the extra thousand dollars. i think people may already be paying $1800 per rower. maybe another thousand dollars is not too much. especially if you are paying $44 a month and that gives you access to content on on -- on all palatine machines. i wish i knew how many people used palatine equipment. i think it would be a key measure. >> my sense is it is not a huge number. maybe it is time to change things. thank you so much, thank you for your reporting. the investor known as the spec king -- spec king says he is winding down two of his blank check companies. he is now going to return more

than $1.5 billion to investors. he says valuations and volatility are the two biggest barriers to closing a deal. coming up, we will continue with our coverage of climate investment trends including new technology. that is next. this is bloomberg. ♪

>> it has been yet another dry

summer in california with us to continue to experience a wildfire season as a direct result of climate change. and while it is possible to be on the lookout for fires, it is often already too late by the time they are spotted. a new spot of -- start up as cap the beginnings of -- will catch the beginnings of wild fires before the become mega fires. the partner joins us not to talk a little bit more about this investment. talk about how the technology works. given that a lot of these fires are starting in the middle of nowhere. >> yes. they have a platform that allows them to visualize a large range of territory. you can try to triangulate where they are starting from. i think it is really -- i grew

up in california and it is important to know that wildfires are actually a very natural and normal part of the california ecosystem. our plans are actually evolved to burn. sequoia trees actually require fires to reproduce. there is always a modest change in temperature which everybody needs. the lack of humidity, it creates more and longer dry seasons which enable small fires to get wildly out of control and so being able to have a system to recognize one fire starts within 15 minutes of it started on one of these very high-risk days, it can allow us to manage our wildfire issue more predictably. that said, we are in a system

where it will happen more often. we are going to live in a world where we are going to have to have more prescribed and managed burns as well. >> kim, used to be a tech journalist. talk about climate investing journalism. >> i have always been really engaged with these really tangible problems that affect everyday life. whether that is housing affordability, job mobility, socioeconomic mobility, climate is obviously increasingly a piece of that. i think it is important to know that we have been investing in companies that have addressed climate change and admissions for many years. there are many companies in the portfolio which helped thousands of buildings manage their energy. you have companies that have a huge breakthrough in energy ventures.

they are launching their first community at the end of this year in january. transportation is 20% -- 27% of the u.s. mission. we have been doing a for quite a while. of course, climate tech in general is having a second wave. this is when this is happened and in the last five years it has become undeniable. it is here, it is now and we all will -- we all remember two years ago. we can't ignore it anymore. we really have to come together as a society. whether that is through the inflation reduction act, the federal government and we also have to do it in the private sector. we are just trying to attack all

sides of this problem as well. >> right. remember the orange day well. now we are in the midst of this massive downturn. is that denting the momentum behind climate investing at all? >> i think it is actually kind of interesting. climate tech is one of the spots that it is still very competitive. there is a lot of capital flowing into the earlier stages. there is a number creating pressure for that. this is the scale of the problem but also there are a lot of limited partners with a lot of different funds. we are seeing lots of things could >> you have commented and reported on san francisco culture for years. i am so curious what your take is on the recovery or the lack

there of san francisco coming out of the pandemic. what is your sense of how tech culture has been hit and if there is a reason that startups need to be in san francisco anymore. >> i have many thoughts. it can be a lot longer, more time. on the startup side, i actually shared a lot of data from the portfolio during and throughout the pandemic showing that san francisco would obviously be the lead in place that they would have a headquarters surpassing that but san francisco was still the number one physical destination that companies wanted to be located in. i think on the government side, there was a great 10 years the city had in terms of tax revenue and companies being founded there. it kind of overplayed its hand.

i think it would be really important for the board. to come out earlier and they really wanted to partner with employers here. even now, two or three years in, we don't get the sense that -- it is actually the mayor's office that really wants companies here. i know that is not make or break a decision but you can compare and contrast leadership with where people feel really excited about this. i think that tone matters a lot. >> we appreciate you joining us. good to have you back. nasdaq is making its first major push into crypto. the second largest stock exchange will be offering this in the institutional clients. this will put them in competition with client base and

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

>> shanghai is being touted as china's new silicon valley. this is a new evm manufacturing hub. >> this is a suburb of the chinese financial center of shanghai. over the past few years, tens of

billions of dollars have board into this small town. especially in the central area which is part of the shanghai free-trade realm. this is been a hub for future industries, artificial intelligence, electric vehicles, biomedicine. those are the industries that china wants to dominate in the 21st century. they are also at the heart of the competition between china and the u.s.. china needs to import $430 billion from semiconductors annually from drones, laptops and other electronics. it has very little chipmaking capabilities of its own. that is forcing the chinese government to set up the indigenous innovation in the future. >> that was charlie there.

hertz announced it will buy 175,000 ev's from gm over the next five years. jim's crosstown rival's stocks synced by the most in 11 years as global supply chains hurt its bottom line. ed ludlow is covering it all for us. >> it has been a huge day for the industry. not a piece of news helped the stock market very much at all. hertz is very interesting because they have been very active in trying to electrify their rental suite. they already have deals with others but they have this objective of 25% of the rental fee be electrified by 2024. this is quit aggressive. this is where jim is transitioning to a lecture of dry -- electric drive trains. this is a lot of cars. it is not just one of their lines. they are talking about cadillac, chevy, they will start shipments

as soon as the first quarter of next year. this seems tangible but it did not do much to support the stock on tuesday. >> talk about ford then. that was quit a big drop. what is going on here? >> for ford, this was the biggest drop in its dog in 11 years. what they did was revise for the current time because inflation around the world's meaning higher costs for them and supply chain pains continue, meaning there are real part shortages. the net result is 45,000 suvs and pickup trucks sitting in a parking lot somewhere that are not ready to ship to customers. the important point, ford reaffirmed its for your guidance and said they would be ready to get the missing parts back, put them in the vehicles and sell them by the end of this year. clearly the markets did not believe them when they look at the severity of that stock drop.

>> is it semiconductors that are causing the real pain here? >> this is fascinating because ford did not say very much at all. they did not specify. all we had to go on was that semiconductors have been an issue throughout this year and even before that. gm earlier in the year. they kind of gave a similar warning that they have this inventory of non-shippable cause because of missing parts and semiconductors were a part of that. we don't have the specifics. we knew that in some sections of the semiconductor market, specific types of ships were improving. we hope to get the granularity when ford actually reports earnings last month. this was them from running, this was the pre-lim to their guidance. >> all right. we know that you will continue to follow. thank you so much. coming up, tackling crypto's energy problem and the crypto powered mobile network. the first ever.

we will talk about that next. this is bloomberg. ♪

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>> the solana foundation has abilities to the third edition

of its energy impact report. the overall emissions rose roughly 26% in the past six months driven by overall growth in its validator network. the block chain and the addition of uh. we will talk about that and more here. as well as our -- as well as her own crypto contributor. to give you joining us. how did these numbers strike you? >> it is doing great. if you look at the overall energy for the transaction, it is less than a google search. maybe two to three google searches. basically, instead of using the service, i am very proud of that. >> at this point, what further steps can be taken to reduce energy on the block chain that you are not already doing? >> as the network matures and with every release, it gets faster, that makes it more

energy efficient as well as every hardware release. the next generation computers are much more energy efficient. this one will get cheaper and faster and more energy efficient over time. >> people believing in between are still relying on mining. when you're talking to investors and people who are thinking about how these block chains work moving forward, what is going to be the driving force that pushes people into more environmental concerns? >> i think this is important for a lot of applications that want to build web to services and attract users because users really care about energy efficiency. we see that a lot of new companies are really attracted to the overall roadmap of how to make the network even cheaper and faster and more reliable. >> we are a couple of days away from the great merge of the

theory of network but what does that mean for you? have you found that the competitive forces have changed things? >> if the vm is much less energy efficient. i am really excited about the fact that if area is moving because this will finally put the debate around whether the steak is secure to rest. i think it's eerie i'm doing this will really make it -- it will prove to everyone that this technology is not mature enough to handle very large capitalization for an hour. >> how far could you go in potentially rewarding the validator's or computers that themselves use renewable energy? >> this is not something that we have looked at yet because they all use so little energy. it is almost a new significant amount to offset.

this covers the entire network. do you think that is deserved? >> mining is very energy intensive. what people need to understand is that for going money would work in a world without fossil fuels. i am definitely bullish on salon and its energy use. >> if you think about how entities have worked, there are seven days here. you have seen more nft is tied to solana.

>> i want to congratulate the company that is the premier marketplace for record-breaking volumes. magic eden has had volumes bigger than all of us on the entities combined on a couple days. that has been amazing. because solana is so cheap and fast to use, when people experience it, they feel like they are using regular applications and it is really hard for them to go back to using older technologies. i hope that the trend continues and they continue to grow and really accelerate and there is adoption around the world. >> this is something under the eye of regulators. particularly the u.s. securities and exchange commission. what sort of regulators -- regulations are there for the ones so tied to the ecosystem?

>> i think people need to be careful when they look at each nft project. the vast majority of them are community-based things that are fun and build communities and brands around an idea of a shared profile. i think those are pretty far from what most people would consider security but you still need to be careful. >> i have to ask you about the ethereal block chain that just went through this big major upgrade. i am curious what your thoughts are on it. and if you think that it makes the solana block chain more attractive and how you imagine them staying competitive in a changed world? >> when you look at the number of transactions that they handle from applications from users, that is more than not just a theory and but all of the

a-based block chains combined. i think that a your rim has a long way to go on scalability. >> do they have any plans for an upgrade down the line or how are you thinking about that? >> it is a community project. there are four teams working on the core already and every release the network gets cheaper, faster and more reliable. it has a roadmap like clinics. just make the next better than the current one. >> all right. think you so much for joining us again. the cofounder of solana labs. we appreciate it. coming up, how crypto is colliding with mobile carriers. that is next. this is bloomberg. >> bloomberg television is

brought to you by service now. ♪

>> colliding in a new deal between t-mobile and the block chains nonetheless. t-mobile has addressed a five year exclusive agreement and they are looking for a new experience. they plan to launch helium mobile which is the first crypto powered mobile service. that means customers earned crypto for which reason the network while saving money. a mere, how does this work? >> this is the world's first crypto carrier. you can think of it from a

consumer point of view from the existing mobile plan. we had a nice app. they should be very seamless. this is a cryptocurrency welder. using the network in the form of mobile token and they actually get to build and on the infrastructure. you can think of this as similar to airbnb and uber. you are not only a user of the network but also part of the infrastructure. >> if you want to use this, how do you sign up? >> you can go to hell helium.com. that is the first step. once we launch -- this will be downloaded straight into your phone. if you have an older phone, you

can use it that way. >> how is it even possible? >> i don't think people believe it was doable at the time. they lost only a hundred 50 hotspots. there are now a million of these hotspots across the globe. this next step is moving in. we is roughly the same tactics.

people are incentivized to install the initial cell towers. they have mobile tokens for doing that. >> obviously, they are well known for their network which helps connect low-power devices. i am curious with his next step, what else could be possible? >> this is the next logical extension of what we are doing. cellular networks were on our radar as the things to do. this has allowed us to not do that. in the future, i think you can expect to see other types of wireless networks?

this way. this is very much a community driven and people powered network. people will propose what they want to do next. but we are super excited about what we are doing here with helium mobile. it is the world's first attempt at trying to do something like this with a hybrid, people powered network combined. chris given that we were just talking to the cofounder, where did you end up on the? >> the helium network is governed by its users so there is acuity driven process for this. there is a proposal and the community. it proposes to rearchitect the way healing works to separate the architecture to be a little bit simpler and faster. a part of that, we are proposing this because of what was being

described. the cost to use the network is extremely low. transactions are extremely fast. it is a diverse and large ecosystem of developers. >> we will keep watching how this all unfolds. thank you for stopping by. coming up, youtube makes a slew of changes to lower creators. what are the creators think? he will speak to two of them. that is next, this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster.

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>> youtube is doubling down on

the greater economy, announcing new pastor partnership for creators and launching revenue shares for short. this announced during their made on youtube event earlier today. let's break it all down by the next guest here. known simply as kellan and sameer on youtube itself. they are the creators helping the next generation of creators learn and understand what works on youtube and how to build successful long-term careers there. they were part of the event earlier. thank you so much for joining us. let's start with you. there are new benefits to creators here. creators can start making money earlier. they can find the music that they want and integrate that into the videos. how did this all land with you? how much of an improvement is there with your perspective? >> it is a huge improvement. there is already an incentive for us as creators that make long-term videos to make

short-term videos. we don't necessarily rely on for monetization but that is not something we can focus on. i think when i look at this announcement, it is really just about the fact that now there is a light bulb that can go offer a lot of new creators that they can get paid by the platform and start building a career. >> that said, youtube is also upping its commission for shorts, taking 55%. i believe that is up from 45%. what do you make of that? >> i think that the reality is that on shorts, there is a little bit more nuanced than 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 of music on behalf of the creators. at a glance, when you look at it you say wait a second, this is a flipped version of what we are used to. youtube typically takes 45% but

what they are doing is allowing creators to use music they could not use before and cover the license fee for that. in my opinion, the costs they are incurring, i think it makes sense that in this specific instance is flipped. >> there are a lot of platforms out there, a lot of platforms vying for your time and the times of other creators. what didn't you hear from youtube that you would like to hear? >> to be honest, i was really excited about the opportunity for revenue-sharing on shorts. i think it is super important that we are growing businesses here as creators and we do want to be partners with the platforms we are using. i think what will happen as this closeout is more creators are going to want a lot of transparency about how the payments are doled out because youtube has always been really transparent. i think that is what we are going to see. a true understanding broken down

from the creator side of how we are getting paid. >> you are both on youtube and tiktok. how do they compare and what do you make of the competition between them? >> i think there is one fundamental difference between the two platforms. we have been on youtube for 10 years and in those 10 years, we have always been in partnership with the platform. the difference is that when we make money, youtube makes money and vice versa. that is truly a partnership. when it comes to tiktok, it is never really felt like a partnership and it is very unclear how you build a career on tiktok. specifically when it comes to platform payments. typically we have seen people build audiences on tiktok and transition them to youtube to build their careers. from our experience, building a career on youtube, there is a different depth of the audience

and there is also a different depth of platform engagement when it comes to how the platform actually pays you. i think when you look at tiktok, a lot of people go to tiktok and they are not necessarily going for specific creators. they take the top creators off of tiktok and it is still enjoyable. if you go to youtube and you start taking off the top creators, youtube is a totally different place. i think youtube is a lot more creator focused and that is what comes across. >> as you think about where to invest your time and your money, how do you see the creator economy evolving? how are you watching this? there seems to be new opportunities and platforms and new ways of reaching fans every day. how are you making those calculations on a daily basis about where to spend your time? >> there is no doubt the majority of creators, their

primary business is advertisement based. whether that is being paid by a platform like youtube or working with brand sponsors. i think what is already happening but is going to increase his it will be more direct to consumer where creators are launching their own brands and their audiences have a loyalty to them and not necessarily the legacy brands that we know. >> you guys also do a podcast series called creator support, you enter questions from your audience. what are they most concerned about right now? >> emily, i am so glad you brought up creator support. we get the pulse of what the problems are for aspiring creators and what is really important to note is that this is the land of creator under part -- creative entrepreneurship. a lot of these young creators are first-time entrepreneurs. a lot of the questions we get our around pricing, how you price yourself. what should i be looking out for

illegal? how do i do my taxes as a creator? a lot of the stuff comes down to the fundamentals of entrepreneurship. if you're looking at the creator economy, this is just a form of entrepreneurship. it is media first entrepreneurship. that is what is really important to recognize. these are the same problems that young startups face, that young entrepreneurs face. that is what we see a lot on. beyond that, it is a creative business so you do get a lot of questions around purpose. like how do i lock into something i can view -- something i can be for the next five or 10 years. not just get myself into a viral trend that is happening right now. how do i turn this into a long-term sustainable career? some of that has yet to be seen. the creators that have done that for a very long time, what we are seeing is disability to evolve as platforms evolve and as changes are made from the platforms like what happened today with youtube.

>> what is one piece of advice for the aspiring content creators out there? a piece of advice that is not obvious. especially after seeing these changes from youtube today. what would you say? >> there is the question that we get a lot and what was just brought up about purpose. that is actually what the advice is that i always give. if you are going to be a content creator, make sure you have a true understanding of why you're doing it, who the audience you want to serve is. if you want to take social platforms away, what are the things you are existing and in real life? it is important that you always have that base understanding that what you are doing by making media online is actually just like speaking to actual people and providing some values. i don't think -- start with your irr life. what are the community is that

you are a part of? who are the communities you want to serve and once you know that you have a much longer trajectory as a creator. >> i like that. that would make sense to me. thank you both so much for joining us. you can catch them on youtube and tiktok. and that does it for this edition of lumbar technology. coming up wednesday, they will be joining us. don't forget to check out our podcasts wherever you get podcasts. i am emily chang in san francisco. this is bloomberg. ♪

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