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

click this is bloomberg technology. coming, bloomberg's conversations with the microsoft ceo. this is about monitoring productivity and why they are so confident about activision blizzard. we have more about whether his gumby will desktop it will play in the global warming battle.

>> the good news is i think we are on set together for the first time ever. that is huge. that hangover from the fed continues on wednesday. you can see it in the nasdaq 100. it is flowing over 1%. they are also taking a beat -- beating, underperforming. let's look at the market that really took it on the chin. they are down almost 5% there. you are looking at the two-year year treasury yields right there. raising another seven basis points. if you look at the two year yield first the stocks, and will

be against the s&p 500. for a while, these two arising together. that treasury yield continues. you can start to see that reevaluation going on in the broader stock market. let's talk about some of these specific names here. we are talking about expedia. we did see alphabet shares buys a little bit. and activision and blizzard. microsoft saying they are still confident that the purchase will go through. >> leaders say they are not so sure. this is according to new data released by microsoft and linkedin. microsoft is releasing a new suite of productivity tools.

this will combat what they call the productivity paranoia paradox. take a listen to what they had to say. >> this productivity paranoia. this is where the leaders think they are not as trustworthy. in many cases they even feel burned out. i think one of the most important things in this new world of hybrid work is to bridge this paradox in some sense. they both mean the same thing. employees feel they are trying and they have to have offensive energy.

i think we need soft skills and managerial skills. you also need new tools. >> speaking of those tools, they are offering several products. there is amplify. how do you think these tools are unique to the product already out there? >> if you want a productive workforce, the first thing is you empower the individual to be productive. secondly, you understand that individuals don't work alone. any to collaborate.

they can leverage a lot of what they see. there is a ton of uncertainty. they spoke nearly 18 months ago. this is what was happening in the labor market. we saw employees everywhere. it was leading to the great reshuffle. things are starting to settle right now. >> in the early days of the pandemic, you expressed concern that we were burning social capital by spending so much time away from the office. are you are -- are you finding that you are right and that needs to be rebuilt?

>> there is no question that social capital needs to be rebuilt. you also need to build social capital in a variety of ways. one of the things during the pandemic i personally loved, i clicked on the profile. i know that much more deeply. to your other point, one of the data points is people come to work for other people. because of some policy. you as a leader should develop the soft skill that allows you to bring people together.

to me, i think social capital will always be important. they need to learn some new skills and some of the old skills. they need to learn to exercise in different ways depending on the team. >> there is a big debate happening right now about remote work surveillance. that is what the critics call it. what is your point of view on companies that think they need to track their employees through technology and whether microsoft's products or tools should allow that? >> i think all of our products need to ensure that privacy regulation, privacy laws by country are all billed apart. if you start saying what are all these tools for, these tools are

about really helping their employees thrive. the only way a business is successful and productive is if employees feel that sense of empowerment. that sense of energy and connection for the company mission. it is not about surveillance, it is more about helping employees thrive. that needs to be the goal of using these tools. >> inflation is at a record high. we heard uncertainty several times. it is the most uncertain economic environment we have seen in decades. how would you describe the level of uncertainty you are seeing right now and how that is impacting your outlook? >> the constraints are real. inflation is definitely all around us. in different parts of the world

have different types of economic growth. i think the constraints are being felt by everyone. i always go back to the point that even in uncertain and inflationary times, software is the deflation. staying super focused as a company, ensuring that our customers are able to do more with less, i think that is going to be key. the key thing we have to accomplish in the quarters ahead. in terms of outlook, i am optimistic about microsoft's value proposition, helping our customers. i am optimistic about our share. we are not immune from anything that is a macroeconomic headwind. we go into this knowing fully well that the digital skills we have, the digital products we have, the software fundamentally is probably going to be the most useful tool in helping us tame inflation.

>> can cook told me apple is going to be more deliberate about spending as the macroeconomic crisis continues. how would you describe microsoft 's strategy and if you are going to be more conservative, how much longer do you plan to be more conservative? >> two points. one is we have grown a lot. last year we grew 70 plus thousand people joined microsoft. i do think we are going to be more deliberate. what does deliberate mean? it means whatever we need to grow, we will grow. where ever we need to be more productive which is everywhere, we will do the same thing. i think it is a great opportunity for microsoft to practice what we preach. that is to make sure that we make sure that people feel like they are part of microsoft's mission. we need them to help us improve

our culture. and then we have many businesses that are really doing super well and they will continue to grow but we will also be looking at what the macroeconomic situation is. i feel very confident about the productivity gains as well as the growth we will have and how we can navigate these waters. >> tech -- tech stocks are taking a beating. microsoft has not been immune to this. this is the key way that tech companies have retained their employees, the attraction of equity. how do we see microsoft and other companies coping with this? >> it is really about attracting people to align with what you're trying to build. think about linkedin. we built great products. people get jobs. they start companies. they learn new skills.

this is what we call doing good and doing well. it is a very empowering thing to our employees that want to come and work on something. they can have such an amazing and productive and valuable impact on professionals globally. i see -- we recently just reiterated and revisited and enhanced our culture to ensure that we have the right foundation to attract the right employees moving forward. i really feel this strong move in the world toward culture and values being more important than they ever have, especially to write -- attract the right talent to your company. >> we know that microsoft won't be filling some open roles. you already said that. you are eliminating some contractor positions. but give us an idea about the

key priorities like azure or security. will they be impacted? >> the core businesses, whether it is security or infrastructure , our dynamic remains the same. these are massive growth businesses. there will be growth all around. it is not going to be about what roles have to grow. we have to make sure that the growth we have is all landing in a very productive way to drive the business is going forward. even when it comes to consumer businesses. at some level, it is about being able to take that install base and making the experience better. we are going to double down.

we are not immune to the macroeconomic bits but in every one of the businesses, there are pockets of growth and that is where we will double down. >> since you are joining us from london on a slightly different topic, i have to ask, microsoft seem -- seemed to be expecting more regulation activity in the ok. they said they were going to increase their investigation. >> fundamentally, we think that -- for us, in gaming, we have one goal. that is to bring more games to more gamers on all platforms. and provide more choice for publishers everywhere and developers everywhere. everything we are doing with our content, our cloud and community

is really about driving that choice and opportunity. any acquisition of the sizable go through scrutiny. we feel confident we will come out number four or number five in gaming. the number one player -- if this is about competition, let us have competition. >> that was ryan speaking with us. millions of two inches which daily -- twitch daily to watch live streaming videos. that includes predators. more on the investigation into the website. we will be talking about that next. this is bloomberg. ♪

>> an eye-opening bloomberg report shedding light on the dangers of twitch. it is owned by amazon and it has 30 million daily visitors, is one of the most popular platforms for gamers. child predators have used the pot from to track children. what did you learn over the course of your report? >> twitch does not allow children under 13. however, there are relatively few barriers from children getting on the at. bloomberg found that there are people out there who systematically follow accounts that seem to belong to children

on the platform. and around 280,000 accounts that apparently along the children are targeted this way. >> i want to bring up the statement from the company from twitch. i will leave designated two. preventing child harm is one of our most fundamental of its possibilities as a society. we do not allow children under 13 to use twitch and preventing our service from being used for harm is one of our biggest priorities. we know that online platforms can be used to cause harm to children and we have made extensive investments over the last two years to prevent any usage who may be under 13 from accessing twitch. the policy which is known under the age of 13 can use the platform, what do we know about how twitch moderates that, monitors the use of the platform? >> unlike platforms like youtube, it is very challenging

to moderate live video because as it is happening in real time, especially for child sex abuse material. twitch is figuring out solutions to a problem and it is a problem that not allow the -- not a lot of other platforms have. they have quadrupled their loss over the last two years. they have dumped a lot of resources into preventing children from getting on twitch and streaming but bloomberg has reported that they have fallen short. correct this is an issue we covered in the show across the industry. social media platforms, online platforms generally speaking. what are the regulators doing at the federal level to tackle this issue? >> it is a very challenging issue to tackle. one thing that is being paid attention to right now is

advertising to children. there are a lot of resources being dedicated to preventing children from receiving messages from companies when they are not age-appropriate to receive those messages. when it comes to moderation, it is a multipronged issue that is highly technical and a lot of the time, tech companies are the ones left in charge of moderating the platform. correct the report is out, what is next? >> the response has been very large from the twitch community, from people who watch their favorite gamers, watching them live stream on the platform. this is unacceptable for the company through which they make a living. >> thank you. we will be right back.

this is bloomberg. he's no -- ♪

>> platforms have been sued for skirting apple privacy rules and a proposed class action lawsuit filed in san francisco federal court. they claim that the company built a secret workaround to apples between 21 privacy rules and violated state and federal law, limiting unauthorized collection of personal data. bloomberg has learned the security and exchange commission could help keep them -- this match them to another firm rather than onto a brokerage.

this is all championed by robin hood. they don't know whether the trainers would actually get the best price. although this is part of an overhaul of stock trading was. -- rules. nelson suggests that nfl fans across the u.s. could find the game last thursday. that is despite it not being available on tv nationwide. amazon is guaranteeing its advertisers will reach more than 12 million euros per game. all of this across stocks, the nfl network and amazon. emily chang's conversation with marc benioff where he made aggressive profit targets. this is bloomberg.

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>> welcome back to bloomberg technology.

i am ed ludlow in new york. this is the biggest convention to hit the tech capital. thousands are headed to the annual southwest confidence. -- conference. she sat down with mark to talk about his next steps. >> we have 40,000 people here in san francisco. every hotel is sold from here to san jose. every airbnb is sold out. it is amazing and they are all having such a good time and learning about technology and how to connect with our customers in a new way. >> we will talk about the state of the city at the moment but you only stew profitability goals, long-term profitability, and for 25% adjusted operating margin. what makes you feel so ambitious in a downturn? >> you saw the quarterly delivered 7.7 billion. it was larger than s&p.

now we are the largest company in the world. that is exciting. we have the highest revenue and now we want to have very strong margins. 50 million is right around the corner. we will have 25% on the operating margins. >> you are also doing these carbon offsets which is fairly unique. do you see this as philanthropy or do you think revenue will be generated from the accounting market? >> when you think about modern business today, you have to have great revenue, great margins. you have to look at your overall cap. we just promoted our the director. when you think about the values of a company, customer success, innovation, quality -- equality,

now we are talking about sustainability. everybody has a personal story about the environment. everybody knows what is happening. so every company needs to go net zero. so we have a new net zero cloud, a new net zero market place, we have the ability to have all of our customers go at zero. we have not started our trillion three program. we need -- we made phenomenal progress. we need to energize the revolution and we can do that here. we are doing that here. >> you have record inflation, rising rate hikes and how concerned are you about the outlook of uncertainty? >> i see that we just went through a pandemic. i know we talked a lot during the pandemic for a couple of

years and it was tough for a lot of people including me and you. we are at home a lot of the time. we run our daily businesses and make things happen and the government invested a lot in the market. and now we are coming out of the pandemic and i think those e-commerce charges are great metaphors. the ones that are going in at the pandemic, out of the pandemic. it is just that you had two years in the pandemic. the economy is normalizing. the world is normalizing. currencies are quick aggressively fluctuating. we have been talking about that since may. what do i know? this is my first pandemic but in the future i know after a pandemic you will have some adjustment. >> meta and google are just the latest companies patting jobs. we were told that we are going to do more with less.

i know that salesforce slowed hiring but are you expecting any job cuts? what is the strategy to navigate it? >> we'll aggress -- we all invested aggressively in the past two years and we are absorbing those investments into our business is now. so we have a lot online and moving forward and we need to enable that and energizing. do i see other changes? who knows what will happen? not our intention. our intention is to get the $50 billion in revenue. last year we did 26 million. this one we will do 31 billion. by fiscal year 20 since we want to do 50 billion. >> i saw you and brett on stage in bunny years. i want to know how it is going.

are you spending a little less time on the day-to-day now that he is here? >> no. i love bread. we have had a great relationship. a multi-decade relationship. i always wanted to acquire his company. we are so lucky we did acquire it. i think we have a fantastic leader of the company. you have to understand these are big jobs. ceo. i know all of them. if you take my shirt off, there is just skin and bones. i think having a partner like brett taylor to help me is incredible and i could not be more grateful. he is -- he has some value. >> how much longer will you be doing the co-ceo thing?

>> everybody seems to want me to do it. >> i interviewed you the very first year. >> you are very skeptical. you would like there is no way you're going to do this for 10 years. >> we are giving over $100 million to san francisco and oakland public schools. this has been very important for them. especially during the pandemic. they are getting another 25 billion. it is set up to go in perpetuity. >> is the government doing enough for the data education system? >> it has to be at the top of every leaders mind. you cannot delegate it to the government. you as a ceo or business leader or another part of the organization, you need to go down to your local public school three blocks away from your house, you know where it is, knock on the door, introduce yourself to the principal and say how can i help?

i built a new playground. we did mentorship. nobody can do something. companies have a lot of resources. we have some of the best and most exciting companies in the country. these companies need to be supporting our local public schools and also our local public hospitals. public parks as well. we just opened a massive $100 million public park. you know my wife is the chairman of it. it is incredible. these are the things that ceos should have their minds on. they should bring all stakeholders together. >> that was marc benioff. you can watch the full interview at bloomberg.com or on youtube. coming up, we have seen an exodus of executives. -- executives at crypto firms.

more on that next, this is bloomberg. ♪

>> a number of cryptocurrencies including bitcoin are lingering year to year those. all of this as the fed takes a toll on risky assets. how are you? >> i am so great. being onset. i thought you were a deepfake for the longest time. >> it has been a long week.

and digital assets did not escape the volatility we saw across financial markets. >> bitcoin outperformed traditional stocks a little bit on thursday but if you zoom out, people on twitter will always tell you to zoom out and it has been a brutal stretch for bitcoin. down 50%, almost 59%. you compare that to the nasdaq. these two tend to trade in lockstep but it has been so much greater. the nasdaq 100 is down only 30% or so year to date. >> i will ask you the most 2021 question i can. whatever happened to bitcoin being an inflation hedge? >> it is a bit of a tortured answer that i'm going to give you because -- and i'm >> you are not torturing me, it is the audience. everyone will always tell you to

zoom out if you post a chart on twitter. advocates will say in time, it is an inflation hedge. when you have the central bank printing money. i feel that right now we are at the test of that thesis. now you have central banks around the globe removing stimulus, hiking central bank rates. classes that is this the first time that we have had a pandemic but also inflation. volatility in the industry -- there has been a lot of well-known founders, ceos of some of the more well-known crypto start ups. >> absolutely. jesse powell, the cofounder stepping down from the exchange,

from that role, david is going to see him. but that is just part of the trend we are seeing. michael stepping down as the microstrategy see yeah. you will have michael morrow from genesis. this is a really interesting moment in the industry where you are seeing a lot of people in the c-suite. a lot of transition. it seems like the same ones leaving the industry right now is changing. we do have a lot still in their positions. it is not completely new but definitely a time of transition. >> as somebody who has covered silicon valley startups, forget crypto, a lot of this is like the changing of the guard. sometimes they have had enough. sometimes investors get involved.

this is a really critical time for the industry. talk to us about that. >> your experience, to put this in your world, covering silicon valley, it is hard to transition away from a founder leaving the company. we are seeing a little bit of that. it will be really interesting to see where he goes from here because the founders become the identity of the company. it is going to be interesting to see how the crypto industry deals with this, who will step up to the plate and who ultimately continues to hang around, who becomes the mark zuckerberg of the crypto industry. >> does demurrage matter? >> that is a really good question. it mattered but then they rallied so heavily into the marriage. it doesn't much matter for the end experience. it is going to be important to see whether it does lead to this influx of development in terms of the ethereum blockchain.

it is not completely over yet for the book that is out of the way. >> thank you very much. coming up, impossible foods, could they produce carbon emissions by 2040? our conversation with the cdf, steve mcginnis next and how they are inflation -- navigating inflation. this is bloomberg. ♪

>> and impossible -- as impossible foods, they pledged to make operations more sustainable. impossible has joined amazon and acclimate plans.

they will commit to taking responsibility for decarbonizing the businesses and reaching that zero by 2040. here with a bloomberg exclusive interview is the impossible food ceo, steve mcginnis. welcome. it is a pledge. how do you fulfill the pledge? how do you make this happen in real substantive steps? >> having the consciousness as a company, secondly, your business practices, thirdly, your business model. for us, claimant has been at the center of impossible from the very beginning. if you look, if we sold 50 million pounds of impossible be, we would avoid 1.3 billion pounds of co2. 4.5 billion gallons of water, of 50 million pounds of plant-based beach. we are unique in the sense that

it is central in court or mission and the better the company does, the more it does for the planet. >> if you can get animal products and focused on plants, how do you improve your performance in that respect? >> it is how you run your facilities and your distribution network and your supply chain network and we all need to do better. whether your business is inherently better for the planet or not, you can improve upon our operations over time with technology, we will enable that improvement. >> one of your mission statements, at your core, you are a technology company. what is the technology that makes it different for many competitors? there are lots of generic names out there making a plant-based meat products. >> sure. at the end, we have 410 pens and i will not get into all of those but technology enables us to make great food.

we are biased but we think we have the best plant-based food on the market. that is enabled by technology and many patents around that technology and some of our ingredients like heme. >> i can buy a pot -- and impossible breakfast sandwich. it is an animal-based product. how do you boost sales not just through distribution, how do you get those? >> we are a tech enabled food company. we are on grocery shelves, we are on menus and restaurants. so consumers have to understand our food better. and why it is better for them and better for the planet. >> one is distribution and accessibility and we have a lot of room to go. we are in 40 low -- 40,000

locations and we could go up to 100,000. accessibility is a piece of it but there is no awareness and very little understanding of what it is. i think the category is up has done a pretty lousy job of communicating it. look to us to explain it to consumers so that they are more attracted to it. crest consumers would say if you look at it, the ingredients, the caloric content, it is not healthy. what would you say to those consumers? >> you get into that processed argument. for me, processed is a twinkie and it is artificial ingredients. so we do have many ingredients to improve texture, taste and flavor so that it mirrors the animal products but they are plant-based. they are natural. i think the definition of the process is another thing that is misunderstood and there are a lot of myths around it. >> do you have a relationship

with some of the other products? some of them have not stuck. correct the original whopper is still available nationwide. we have added the king burger and we have added the southwest seasonal burger. now we are testing a chicken patty. we continue to expand. >> how will that will not go? >> depending on the test results, it could be national. we feel great about the burger king partnership. that is expanding. >> i think inflation is a really hard thing for most businesses. certainly for consumers. for us, it has not really affected our business. we had a lot of cost absorption. the second thing is we have long-term contracts with all of our key ingredients. we have not had that yet so we

have not passed on to consumers. we passed it on flat prices as me prices have gone up. our gap to the animal product has never been tighter and history of our company. >> did you cut prices to be more competitive? >> we could. >> will you? >> we will look at everything to make it more accessible. everything is on the table so we can maximize our mission of reversing climate change. >> do you kind of zero in on them? do you take a wider view? how do you get on top of a busy field? >> i think there will be consolidation in our category. i see one or two brands moving forward. i don't look at beyond meat's my

book. we have our own. we are trying to displace the animal. we are not trying to displace other plant-based meat companies. in fact, we celebrate others because they are doing right by the environment. so our goal is not to steal share from other plant-based meat companies. >> you don't seem in any hurry to ipo. what are the conditions of that? >> we are in no hurry because we don't need to. our balance sheet is strong. we will ipo when we want to and/or need to and the market is better than it is today. we will keep you posted on that one. >> what will the next product be? >> we already have chicken, beef and pork. there is a lot of experimentation with seafood, salmon but we cover reference, lunch and dinner, chicken beef and pork. so we are good. >> i can't wait to see. thank you for being with us.

>> thank you for having me. that does it for this edition of bloomberg technology. david crawford will discuss how we could rewrite the rules of user identity and disrupt some of today's largest tech forms. this is bloomberg. ♪

>> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its employees.