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>> i'm caroline hyde in bloomberg's world headquarters in new york. >> i'm ed ludlow in san francisco. this is "bloomberg technology." caroline: bob agre's return as disney ceo comes as the company deals with challenges internal and external. ahead, the biggest priority for the comeback king of content. ed: and genesis facing bankruptcy. the entire industry faces a liquidity crunch. and we have learned u.s. prosecutors opened a probe of ftx months before its collapse. caroline: we will break down how tech layoffs create a wave of issues for non-u.s. citizens that worked for silicon valley giants. but first, let's check in on the markets. let's go broader because overall, there was a bit of risk aversion in the market. volumes are low, we have a shortened week. the technology sector under some pressure. it is up of the day.

nevertheless, stress as we see more people focusing on what the federal reserve will have to do to her tail information, whether they will hike rates at a pace of 50 or 75 basis points. many moves up. kraneshares in china. i have been looking at the etf's that track the etf giants. they had been lower on the day. what is happening in terms of china, covid outbreaks, deaths. does that mean that we will see the curtailment of that economy going forward? china had been trading lower, but this particular etf is just flat, or up 1% at the end of trade. let's look across asset, at what is happening in terms of bitcoin. the two-day chart. down 6%. we know it is a volatile asset class. . we want to focus on what has been happening in the crypto world, further headlines when it comes to genesis just in this hour alone. ed: the crypto contagion is also

spilling over to the equity markets. coinbase closing at a record low. well that stock is at a record low, we see cathie wood and ark buying the date, 1.3 million shares of coinbase. other movers, draftkings down 5%. users reporting issues with their accounts. tesla is down 25% since october 28, when elon musk closed his deal to buy twitter. obviously, some concern elon musk is distracted away from tesla, but also, the impact of covid shutdowns in china and the question of how that will impact many fracturing at the shanghai plant. and then. disney is up 6%. bob iger is back, bob chapek has departed the company. this is an amazing price chart. look at the stock in the last two years and remind yourself of the story behind disney. disney plus lunch at the end of 2019. capac didn't even take the helm

until the early stages of the pandemic in 2020, then you have the roller coaster ride with that share price rising mid 2021 and then falling away as being concerns over subscriber growth and how extensive the losses are for the streaming business. and the far right-hand side of your screen, bob iger is back as ceo, so much to digest with this story. caroline: we will be focusing on disney, but first and foremost, breaking news. bloomberg is reporting that general asset brokerage genesis is struggling to raise fresh cash and it is warning investors that it may need to file for bankruptcy if its efforts fail. it's all according to sources. sonali basak was one of the key reporters on the story. thus far, genesis is saying this is not imminent, but they have been trying to raise funds for sometime time now, right? sonali: remember they had halted withdrawals of the lending unit last week, and since then they

had been in talks with investors, including now binance. funding has so far failed to materialize and they are warning the group of investors that they might need to file, for bankruptcy certainly of the lending unit, if the talks did not materialize into funding. genesis is a huge player in the is additional space. there trading desk has reported exposure to ftx. we are starting to see more effects of what happened here that you could argue was contagion that started back to three arrows, let alone currently when it comes to the ftx tobacco. ed: what is happening behind the scene,, how much cash do they need? has this happened in the last 24 hours or the last two weeks? sonali: remember, they halted withdrawals on wednesday and then they had over the days after that started to look for money. the way my sources describe what was happening is a lot of the talks amplified into the weekend, and again, this is

still, they haven't yet said they will file yet, they have told us on the record that they don't have plans to file imminently, and their goal is to resolve the situation without the need for bankruptcy filing. but we know this is still a huge risk. remember, there are benefits to bankruptcy as well. it would contain the situation here. and this is part of the broader digital currency group empire where we do not have indications that this is a broader problem. when you look at this empire that was built. that is an important part of the story here. which assets within the empire that we are talking about and how far that contagion can potentially go, as we plan for a potential bankruptcy for this unit. caroline: talk to us a little about digital currency group and the efforts that had already been made by barry silver to prop up that entire group. it has been noted that many had been put there to ensure that

post-three arrows, the implications were not too destructive. sonali: after three arrows a part of empire here was said to have been a creditor to the three arrows group. why is that so important today? because as investors look at this asset to the point you are getting at here, is they do want to entangle the relationship between genesis lending genesis , trading and the rest of digital currency group. now, remember, the rest of the empire is super important to the crypto space. that includes grayscale as a company. eric balchunas at bloomberg intelligence has been really and pointing this out, the company itself splits off a lot of money based on what they are getting in terms of managing the assets for the grayscale bitcoin trust. what is revenue-generating, what is still ok today, and what parts of the business are we concerned about, but more impotently for investors, what

is the relationship between all the entities at the end of the day? ed: sonali basak, thank you. let's turn now, to disney. after the bombshell announcement that bob iger is coming back to the company, ross gerber is ceo of gerber kawasaki, and most importantly, a disney shareholder. your reaction? ross: i was so happy, when i saw the news last night, i thought i was dreaming. it was like my dream came true. bob chapek had been writing the business into the ground and he had made crucial errors in handling some very difficult situations, and it was time to really refocus the business back on creating great content for a reasonable cost. caroline: so, in terms of your prioritization here, and i want to bring to our audience a poll that we went to twitter with -- i know you have thousands of followers, but we were shining a

light on what we think that prioritization should be now. is it the cost controls? is that the streaming perspective at the moment? is it the internal management of the business? because bob chapek himself had made some very criticized decision-making when it comes to the politics within florida and what the company stands for. from your perspective streaming strategy is number one for our audience right now, is it number one for you? ross: for sure. the streaming business they have built is amazing and it was led by iger at the beginning to get into streaming. and so they got to this point where they now have hundreds of millions of subscribers, but their losses have ballooned. in am not really sure why there was such a lack of focus on the cost controls, especially the last quarter. because the rest of the business like parks and resorts and hotels and the cruise ships, many elements of the business are booming right now and hugely profitable. . we actually expected disney to

beat profits nicely this quarter, and it was, like, where did this extra billion spent on the streamers go? and so disney plus and hulu are great assets. espn plus, great assets, and they have had a lot of money invested. but it is time to make this business profitable and make sense economically. ed: let's bring you some of what bob said in a statement sunday night when he was named ceo. first of all, he seemed as surprised as the rest of us, using the word "amazement," but he also talked about "these times remain quite challenging" i suppose referring to macro conditions. he talk about profit. you cannot just turn the tap off and suddenly the losses from streaming go away. how materially does he fix things at disney? ross: i think you have got really three main issues that disney faces. the first which we have been discussing is, how do we yield a stream or with the right

economics? you do have a certain level of certainty about what your revenue will be because it's a reoccurring revenue model. disney and apple recently raised prices on their streamers, so they can pretty well guess what they will take in revenue wise over the next 12 months. they just need to right- size of the budget for it. you just have to do the right math. the second thing disney needs to address is china, the really difficult challenge many of my companies are facing what it daily, mgm and micro or tesla and shanghai, we are facing so much uncertainty in the shanghai park. it is closed again. this is a big challenge for them despite the rest of the parks business doing extremely well. the third thing is where they're going to do with their sports business? i love the espn brand and i think they need to be deeper in sports and deeper in sports betting, and if not, just get

out of the sports business and spend it off or sell the espn brand. but i think they need to make a decision on what they are going to do with sports in the future. i think disney should stay in the sports business but i think iger will assess some things and make great decisions. caroline: and soon enough we are likely to see the amortization in some parts of disney plus. i am interested in the people behind disney plus, the executives. we know bob iger might well be thinking of his lgbtq+ community , his response to them and the politicalization of that. talk about the people who were given a backseat under chapek and how that changes. ross: this part of disney was, going back to iger's days when they bought fox, when they integrated fox, a lot of the disney people laughed, and the fox people -- disney people left, and the fox people sort of

on the movie side, stayed. that has been good forgive me. i don't think chapek had any vision for the artistry part of making the magic of disney. that is what iger has that is hard to quantify. i think this is like a really big thing. i do think they have great executives managing their businesses, but i think they need direction as far as content is concerned, somebody with taste. that is what iger had that chapek doesn't. but i still think the integration of disney and fox is not 100% complete. i think there needs to be this finality to it. ed: did you buy more disney shares on monday? ross: well, you know, i run a public etf gk is my etf and i , did buy disney today. i don't know if that has actually posted yet. [laughter] that it is posted anyways at 5:00 eastern. markets are closed. i did buy disney aggressively

today. i think it is wildly undervalued. and with iger back, it's a whole other business to look at now. ed: another business to look at -- twitter, you are an investor in the private entity. bloomberg reported that layoffs continued on monday, a focus on sales and marketing. what do you make of that? ross: i think you will see the same thing at disney. if you look at tech companies across the board, twitter included, and probably more extreme than most, is a resizing of the tech industry. part of that is from the pandemic boom to know bust, and then also just a realistic view of what costs and content are going to be used and achieved. but twitter was wildly overstaffed. now they are going to move to a staff level that is probably

widely understaffed and then they are going to build, and they are going to build by hiring. i think people are thinking that this will be the permanent size of twitter. but i don't think that is correct. what is going on is a corporate restructuring where a new culture is being built at twitter and one that will be more productive for the company, the users, and its shareholders. caroline: your perspective, i am interested in what might occur -- you say it is widely understaffed, are there any risks or concerns whether it is so? ross: i have been monitoring twitter very closely from my own experiential point of view to see if there have been any changes, and i actually would argue that twitter is better now than elon has taken over. engagement has been off the charts the last capital weeks, not to mention all the news and information. but twitter is still the most

incredible source of news, besides bloomberg would when you are looking at sam bankman-fried live-tweeting through his fraud, it is only on twitter. if i am on news on ukraine, i am sorry, i have to go to twitter. and extremely pertinent news information state, one that elon is working very hard to protect its integrity. ed: as an investor in twitter who wants a long-term return, one thing that you want to see elon musk do on the platform? ross: add creator engagement opportunities. by adding youtube and these kinds of features where creators can get on the platform and make a living, we post a lot of video on twitter and youtube and everybody has to monitor through youtube, so i think the creator opportunity on twitter as a platform is enormous, and i think you two scared. ed: ross gerber, ceo and cofounder of gerber kawasaki,

thank you. coming up, the latest on the ticketmaster and taylor swift debacle, and the doj's role in all of this. this is bloomberg. ♪

caroline: let's talk about live nation's ticketmaster. the system crashed, and that dashed the hopes of many a taylor swift fan look in particular. that forced the doj to start an

investigation to see whether live nation is abusing its power of the live music industry. jennifer reid is here with more on this. want to discuss what she put out for bloomberg intelligence, reminding us that this is the first time the doj has gotten interested in m&a done years ago. jennifer: this has been going on a long time. i think that taylor swift debacle brought this to the headlines, but have been many groups that have called for the deal closed in 2010 be unwound by the doj, really ever since it close. the doj started investigating after settling with the companies in 2010, only a few years after they were actually marched because they believed were already violating the consent agreement had signed in 2010. now, i don't know when exactly the investigation started, but when it ended, was in 2019 and the doj said we do believe they have been violating these terms. there were supposed to behave in a certain way toward venues. they promised not to force or

coerce venues to use ticketmaster, allow them to use rivals, and in fact they have reneged on that. we're going to enter another settlement and that settlement was signed in late 2019. and now, i think what is going to happen is the doj is going to look again to see, are they still violating the newer, amended agreement from 2019 and are they doing more in a market that is anti-competitive? ed: what is the threshold at this time around? what is it that they would looking for that would be enough for an enforcement action? jennifer: that is a good question. they actually have two different thresholds. the consent order they agreed to enter an teens nord the threshold, something live nation agreed, whether doj to show they have been violating the consent order. if they are trying to show they are not abiding by the terms we have a low threshold to prove that is happening.

i think this is the proof and evidence fairly easy for the doj to collect. they just go out to venues and asked what their communications have been with ticketmaster. i think the second thing the doj might be looking at is more broadly is live nation and ticketmaster entering into exclusive agreements with so many big venues that they are basically blocking out smaller rivals who can no longer contract with those venues because they are exclusive to ticketmaster? that is a higher threshold. subbing they could also prove in court, though, if you are a company with market dominance and is alleged here that live nation does have market dominance, it is illegal to tie up more than 35% to 40% of the outlet. if that is what they are doing with these because ice could save agreements, then that would violate antitrust laws. caroline: 2010 when the merger occurred, was a long time ago. talk to us about the speed at which any of this could unfold. jennifer: it is really slow. as you heard, the merger was in 2010. according to the doj intro 19,

the deal had been violated since 2012. so these investigations can go for between three years. at this investigation did start a few years ago. i went back and look at how often we at megan tevrizian's head published about antitrust problems live nation could have. we wrote in 2018, 2019 and 2020. so i think it is very possible something could happen next year in 2023. ed: bloomberg intelligence's jennifer rie. thank you. coming up, are top tech calls of the day. stay with us with stocks he should focus on. and as we head to break let's , take a look at zoom. the stock down almost down 5% after reporting its lowest quarterly sales growth on record. tomorrow, we talk to zooms chief financial officer about the company's fight to reverse the slowdown in growth. to miss it. this is bloomberg. ♪

ed: time now for tech calls. moffett nathanson upgrading disney to outperform. expecting the company to re-examine its streaming strategy after reinstating bob iger to the top job. self-driving tech name mobileye initiated with a street high price target. the firm has put a buy rating on mobileye, saying there is a path to $50 billion of revenue. and carvana has been downgraded to sell. the firm says carvana struggled to make a profit as used-car prices continue to drop. those are your top tech calls.

caroline: some great ones there. meanwhile, coming up, we have so much more to talk about tech workers. thousands have been laid off by tech giants recently and hundreds of those are on temporary work visas. why the clock is ticking for immigrant engineers. a clarification from our -- for our audience. during a discussion on elizabeth holmes we want to clarify we were not trying to imply we work's founder adam neumann had committed any wrongdoing by a comparison made. this is bloomberg. ♪ ♪ y do so many businesses use stamps.com? they save time by printing discounted stamps and shipping labels right from their computers get a 4-week trial plus postage and a digital scale go to stamps.com/tv and get started today

well, we fell in love through gaming. get a 4-week trial pbut now the internet lags and ait throws the whole thing off. when did you first discover this lag? i signed us up for t-mobile home internet. ugh! but, we found other interests. i guess we have. [both] finch! let's go! oh yeah! it's not the same. what could you do to solve the problem? we could get xfinity? that's actually super adult of you to suggest. i can't wait to squad up. i love it when you talk nerdy to me. guy, guys, guys, we're still in session. and i don't know what the heck you're talking about.

caroline: welcome back to "bloomberg technology." sam breaking news. this should do with the fallout after the reappointment of bob iger at disney. we understand at the moment he is asking disney managers to reconsider the corporate structure. we have started to see the distribution chief kareem daniel is stepping down. this executive was close to bob chapek. bob iger is announcing changes in the company memo as it cans. kareem daniel being the chairman of media and entertainment distribution. we will continue to bring you the latest when it comes to disney and some of the restructuring there. meanwhile,, mass tech layoffs have left hundreds of workers living on temporary visas with little or no no time to find another job or they have to leave the country. how could this change the u.s. tech landscape more broadly? ed: tech companies rely on the h-1b visa for computer engineering talent. from all around the world. the numbers behind this bloomberg analysis are estimating. h-1b visas are capped at 85,000 per year.

this group of six tech companies on your screen are behind 45,000 of them, both new and renewed, over the last three years, just those six names alone. as you can see from the chart, h-1b's makeup a -- not a majority, but a significant of the overall workforce. to answer your question, if a tech worker is laid off and they have to return to their home nation as a result of losing their job, there is a cost to their employer that has to be covered for the travel back to the home nation. the cost is a big part of the story. why are layoffs happening? cost-saving measures are part of it. h-1b visas also carry higher than average pay. generally speaking, the national average in terms of pay is around $106,000 per h-1b visa employee. but you look across the tech sector, again, those same six names, the average pushes higher and higher in terms of the salary that h-1b visas employee

can command. and things are changing. think of all the reports recently on twitter, the staff that have been laid off here in the united states and the reporting number has done about them trying to find new roles, talking with recruiters. encourage the audience, go to bloomberg.com, get your bloomberg businessweek hard copy and look at this story, fascinating data analysis. caroline: and all over linked in, many of them using any technology outlet possible to try to find a new sponsor. a chief people officer from dixon white brings her expertise. you previously held positions at disney and wework. this is an emotional time for many. to let their children remain at school here, that the building blocks of a life they make. we are hearing that certain companies are taking different ways of supporting them. we know that meta, for example,

is trying to delay the notice period people serve. what is some way that companies can make the transition? >> i think the best way is for them to be honest about what they can do and afford right now. if you are on h-1b is a and you are in the middle of your visa stay, trying to get on with another tech company would be amazing at this point, it seems that the largest tech companies are setting up for layoffs right now, so maybe looking at a tech company that still has the ability to sponsor. from a company standpoint, companies are looking at the talent that they can't lose no and keeping those sponsored, and for other people, they are trying to get them an extension for as long as they can. because there are so many people who have adjusted their lives, believing that they would be in the u.s. sponsored by an employer. caroline: from a more macro

perspective, time and time again everyone has wondered when this will show up in the numbers. when the nine fund periods are going to show in the job layoffs we are seeing technology, and the response is, look, these are to landtag individuals will find it quick to find another role. i am just hearing of job freezes in the tech world. sonali: 50% of the people being laid off find a job quickly. what is happening is that there are layoffs and that there are a lot of job uses. and it is the holiday season, a very slow time for hiring all around the u.s.. so what we have here is two things working against people -- one is layoffs and freezes in the second is a holiday season. even if we look at 2023, january or february, we are only talking about 50% of the people receiving tops again. because everyone isn't a

software engineer that is laid off. it is across the spectrum -- hr, legal, finance operations. all of those jobs even though they are in tech do not necessarily get picked up as quickly. ed: ayesha, i want to leverage your professional background, your experience. we have done a lot of reporting here at bloomberg about what has happened at twitter --people being locked out of the building. the hr department being let go. those administering the layoffs not being qualified hr people. you know, elon musk tweeted over the weekend, pictures of him working late into the night with this new team of engineers. what is your assessment of how that process was handled? >> i want to be completely honest and transparent. this was probably the worst mass layoff i have seen in my 20 years of being an employment lawyer. i think elon came in as an individual, versus a businessman and looked to take over a company and is using it like it

is a toy versus a company at this point. he did not come in and work with the chief people officer, chief people and diversity officer to determine the skills he had within the company, the knowledge base had within the company so he could make informed decisions about who to let go and who to let stay. everything is showing he is letting go of april that he is asking to bring back at this point. a i mean, there -- there are many things he has done that have been unfortunate it is playing with people's lives, their salaries, their medical benefits and their retirement benefits. this goes against everything we say is in best practice of hr and it is really unfortunate. ed: on the other hand he does have a track record of getting the best out of people, especially when they are under duress. the end justify the means? ayesha: absolutely not. absolutely not. and i would eat my words in six months to a year if something is different.

but honestly, right now he is working with a bare-bones crew, a crew that doesn't appear to be diverse, a crew that is looking like they are going to burnout. and honestly, a number of people that i know have continued with twitter are just looking for their next best opportunity. the landscape of employment has changed considerably since covid. no one wants to work and work until they drop anymore. it's not that type of employment landscape. i understand that elon has had people who stick along with him for this ride for a short duration, but i do not believe that he has created enough goodwill or that he has a good enough reputation even within tesla to bring people from twitter who had really dedicated their skills and everything to twitter to bring them alongside what he is trying to do. he is just not communicating enough not showing the roadmap to everyone, and the thing he has done, from laying off people

at the top all the way down with no severance or no notice, it's no way to keep the company going. caroline: just to play devil's advocate here, you say the landscape has changed, but the economic landscape is changing with it. before we really had the pendulum swinging in the direction of talent, of employees. were now we have a slowdown in the economy and people are more fearful of their jobs. is there a risk that the focus on diversity and inclusion, the realignment of what we thought our purpose for work was shifts again as we start to get more fearful? ayesha: i don't think it will shift. i think some things will take a pause. i believe budgets within the eni 's, within the culture space are going to pause. because in some companies they believe that is nice to have, versus a must-have. but in terms of what we need from a bare-bones perspective, to have a company run, which is top talent, top talent can go

anywhere. the question is why would they want to work for you? elon is not offering increased salaries, increased flexibility, nothing. he is saying, please buy into this dream i have of how i can make twitter something even better than it already was, and i don't know if he has a lot of people along for the ride. in terms of the other tech companies, some have really done it right, who are not abandoning eni, and some other things like stripe. i think you don't abandon these principles. sometimes you do need to take a pause budget early in order to focus on operations. ed: a short wait, dixon weight chief people officer and chief diversity officer, thank you. twitter reported more layoffs today. kamaron leach is on the case. what did we learn? kamaron: there has been a

lot happening over the past 36 to 40 hours for employees at twitter. we can say even from our own reporting starting off on sunday workers woke up to a new , calendar invite sunday morning and then by midday sunday there was an all hands meeting basically trying to get a new direction for where twitter was going to go. by the time they came around her monday, workers had learned that they had been fired, but only until january that they would still considered an employee. more specifically, this affected the sales team and it came as a complete shock specifically because the sentiment was that they had been shielded from some of these layoffs we have been reported. employees have been watching our reporting as well, too, because they did not know what was coming up next. . the sentiment was that they wouldn't be affected by the layoffs because one thing twitter needed was revenue, and the sales force with the main driving force behind those things, so this came as a complete surprise to those workers.

caroline: the story showed that at one point there were 7000 workers before musk. now we are looking at an employee internal count of 2,750. how much is there still to go? how much do we inherently need to support an overall social media empire such as twitter? there has got to be real concerns here. kamaron: we have been tracking these companies and we know that twitter has been a revenue-losing company for some time now and they have had to cut costs. i think they only got down to less than one billion last year in 2021. it is so much money they have to count. it seems elon thinks salary is the best way to do that. i think the wheels are definitely spinning over there. nobody knows where this roller coaster is headed next and everybody is walking on eggshells.

ed: you and i and the team, we have heard from a lot of former and current employees, a lot of sources inside the company that have been confused about what is going on. what is the sentiment among staff that are left at twitter? kamaron: even for those that are left at twitter, as your guest in the last segment said, they are still looking externally. they are keeping the training wheels going. because there is no direction, there seems to be a lot of confusion going forward. i spoke to a source earlier today, and apparently, there should be a final all hands meeting happening to that kind of gives the direction where twitter 2.0 will be going. those are the staff members left and that elon will be keeping. but that was supposed to be the thought with the last all hands meeting, so you never know. this could be the final one. nobody knows. we are sticking close to the situation. and we will monitor it on bloomberg.com as well. caroline: kamaron, thank

you so much for bringing us your inside track. we thank him and ed with all of your reporting. coming up, crypto contagion worsens. genesis warning of a possible bankruptcy. more on that in a moment. this is bloomberg. ♪

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ed: two major bloomberg scoops in the world of crypto on monday. genesis has warned of a potential bankruptcy if it doesn't get funding, and federal prosecutors in manhattan were already looking into ftx, months before its collapse, that according to sources.

luckily, sonali basak is here with all the details. let's start with that ftx investigation. what to we know about regulators and what they were doing with ftx? sonali: regulators were concerned about the ftx empire. of course, regulators in the united states would be worried about the ftx empire. remember, the bloomberg's group we are discussing is on the back of a lot of dispute here between the bahamas and the united states and bringing sam bankman-fried here to be questioned by regulators and lawmakers publicly, as we wait to hear what will happen with the house financial services committee, and the senate banking also want to bring in sam bankman-fried for testimony as well as his deputies. separately as you think about what is happening with regulators, tomorrow there is going to be a hearing in a delaware bankruptcy court starting at 11 a.m. so you are hearing both the issues of the ftx empire unravel at the same time as we hear about authorities and their concerns between the links

between ftx and alameda. caroline: let's go to further links, further contagion. let's go to genesis. because your scoop just before us coming on air, the fact they may have to file for bankruptcy. the focus right now is, this is not immanent and they are looking for other sources of funds? sonali: something interesting about not just the breaking news we have today as well as what we have had as we have been talking about, u.s. authorities looking at ftx over months, this is just another indication that some of these issues go back many months, they go back to three arrows, for example, and whoever ever had a relationship with them. remember, genesis did have links to both three arrows and ftx at this point in time. they were a large creditor when you look at three arrows. now let's look at ftx, the trading desk had $175 million tied up with ftx, but the lending business separately has had to pause withdrawals.

so here come the questions, what were the relationships then between genesis lending and genesis trading, genesis lending, trading and the rest of the digital currency group empire? how much does this matter at the end of the day? it's not just a matter customer money tied up with one lender, is there a broader systemic issue in the way customer funds are being used among crypto companies when it comes to lending and trading activities? caroline: one we continue to ask questions on. we thank you. meanwhile coming up, we want to talk a little bit about fifa. the backlash going viral on day two of the world cup. this is bloomberg. ♪

>> in 2020 10, fifa north qatar would host the 2022 world cup. . it was promised to be a carbon-neutral tournament. but as the matches approach, environmentalists are claiming that qatar has green washed the world cup, in the event will put millions of megatons of carbon dioxide into the atmosphere. >> it's mostly a pr claim. essentially there is no way that a mega event of that size can be carbon-neutral. >> fifa should do better. . my focus would be an encouraging them to do that for the next world cup. >> the u.n. defines carbon neutrality or achieving net zero carbon emissions as balancing a measured amount of carbon release with an equal amount offset. >> the first step is to measure your emissions. that is what fifa has done for the world cup. we looked into that calculation and we think that this is quite significantly underestimated. >> so there are two big challenges with any carbon neutrality claim at that event of this size. . the first is travel.

the second is construction. >> 75% of the carbon neutral of all sports stadium over their entire lifetime is locked in from the materials they are built from. it's not about operating costs, it's from concrete and steel. >> qatar has invested billions in infrastructure for the tournament including building seven new stadiums. organizers estimate the world cup will you meet 3.6 megatons of carbon dioxide. >> the stadium is the most problematic element because it is the element we think was most massively underestimated. from that factor, we think the total footprint would be 5 million tons. >> international flights in and out of doha will account for the majority of emissions. however, organizers argue that this world cup will be more energy efficient, since fans will not have to fly to different venues and can instead take public transit. >> the sticking point is always the flights, most olympics and world caps its accounts to more

than 85% of total emissions. >> balancing carbon emissions is quito carbon neutrality. so far qatar has put purchased more than 350,000 carbon offset credits of the 3.6 million needed in their estimation. the committee says it has secured a minimum of 1.5 begin credits from the global carbon council, and that further details will be forthcoming. so far, green washing issues are not keeping fans from routing under teams. an estimated 1.7 million people will be in attendance with, over 3 million tickets sold. but with a warmer future ahead, the effects on fans will soon be felt. >> it is the most enormous opportunity to tackle the climate crisis, because we can engage for offense. ♪ caroline: now going viral, let's

take with fifa and with seven national football teams, including england, who will not wear a rainbow armband showing solidarity with lgbtq+ rights, bowing instead to pressure from fifa because players might receive a yellow card for their show of support. qatar has been under scrutiny leading up to the world cup over the treatment of migrant workers, concerns over human rights, and its criminalization of homosexuality one. gay-rights group, stonewall, says that by threatening voting sanctions and stopping players from wearing one love armbands , fifa are brushing criticism of human rights abuses under the carpet. one human rights campaign that noted that two days ago, the fifa president spoke of inclusivity, but this ruling shows actually his true colors. "i urge the team captains at their postmatch press conferences to spend 30 seconds to speak out for the rights of women, lgbt's and migrant workers." that would have a huge impact,

he says. and for me, also, the iranian team not singing their national anthem and over the course of this weekend going viral that shocking news out of colorado springs. it makes it a very intense time for the lgbtq+ community, particularly in the u.s. ed: and we see on social media it is having an impact, the captain saying they thought they would face a fine rather than a sporting sanction. serious things. that does it, caroline, for this edition of "impact technology." on tuesday, we have the zoom cfo kelly steckelberg to discuss earnings as well as the growing competition in videoconferencing. don't forget, check out our podcast. you can find it on the terminal as well as apple, spotify, and iheart. this is bloomberg. ♪