>> this is "bloomberg technology." with caroline hyde and ed ludlow. caroline: i'm caroline hyde at bloomberg's world headquarters. ed: i'm at the san francisco. this is "bloomberg technology." caroline: a huge day for big tech earnings. spotify out of the game. microsoft and alphabet.

the ai search engine front of mind for investors. ed: the european union says 19 major online platforms and search engines will be subject to extra scrutiny under his new content moderation rules, including a plan to conduct a life stress test at twitter. caroline: the app blue sky is backed by jack steil -- jack dorsey, emerging as an alternative to twitter. what makes it different from the competitors? let's check in on the markets. we are worried about recessionary risks. we are worried about the macro environment, setting off on the nasdaq more than a percentage point lower. some of the data, whether it be about consumer confidence, housing prices, u.s. economy 10 year yield. flight to safety. 10 basis points. seven basis points on the downside below that today moving average. not only risk-averse in the u.s., also for the sixth straight day in terms of the

u.s. chinese traded names. this is on word we are going to limit u.s. investment in those chinese names. in the world of crypto. another bit of a bellwether. back to being a risk asset. down by .5%. ed: earnings are the main driver in the macro picture. i'm taking on gm. they have raised guidance for 2023. a lot of analyst concern about how thin margins will be as they shift to ev. a public service announcement retiring the chevy bolt production. it will end. first republic, also interesting. as we have been talking about, so much of our audience were apposite or's at first republic. the concern is deposit outflow. we will talk about that later. look how severe the drop is. that is the downside. the upside, we are looking at spotify. out the gate with earnings this monday. subscribers on the paid side rising 15%. 212 million. monthly active users have

breached 500 million. 515 million monthly active users. narrower than expected loss. questions about profitability long-term. but the outlook second quarter, revenue growth, subscriber growth, monthly active user growth. that is what investors like to hear. caroline: let's dig in on whether that is getting close to spotify. the bridge senior analyst is here. are you reading the positives in terms of the tea leaves? >> absolutely. pleasure to be on. a pretty good performance across the board. 14% revenue growth, consistent gross profit margins. profitability was down. it is in line with what was expected. the big thing is when it comes to spotify across the board, we have been focusing on what they show to investors, subscriber growth. it shows in the ways they have reported numbers. but what retail and

institutional investors are focused on, were focused on in 2022 was the after profitability. it led to a mismatch or inability to come up with a unified, coherent equity story for the business. that perhaps has been responsible for what some would argue a relative underperformer for the scale. we have seen positives, but from the experts we have interviewed, it really appears as if the longer term sustainable profitability might be something that can hit right now. it might be starting more with market share attention and market share gains as a whole. ed: market share, let's talk about technology. there is a lot of option out there. we were talking on the program about apple raising services prices with apple music. spotify is growing its subscriber base. is it podcasts, the music library? there must be a reason they are continuing the growth narrative? >> absolutely. i put that into two -- it

becomes clear so we see the emerging picture. moving into the developed markets and the premium subscribers. spotify, the one thing it has been able to do is have very strong brand equity across the board. it has a powerful first mover advantage. so ingrained into how consumers use a product, spotify becomes the go to that they end up using. it is easy to acquire those customers. they are doing quite well over there. as opposed to others who do little in the market. if you look at the perspective of emerging markets, some interviews, whether we look at spotify, the middle east, north africa, latin america, they spoke about the latin american performances earnings. they are going aggressive in terms of their marketing. we will talk about the profitability consideration. spotify appears to have realized longer-term, if they are able to

crack these developed markets, that is how they will get there profitability on scale. ed: the big theme is artificial intelligence. when i open spotify, the platform knows what i want, red hot chili peppers every time. what is it when it comes to spotify? >> the investments it is making in technology. the ai dj we got to play with a little bit earlier in the quarter. to your point, are they making the right investments? many felt they were having to dial back spending in the overall focus of podcast. they are still having to spend to deliver the content we want at the right time. >> here's a big theme, and i think it was mentioned that they are going to see reduced spending at a particular time. the experts we have interviewed, the reit has been this is not necessarily going to be the case. if you look at the answer, in terms of the ability to give the targeted advertisements, spotify

has not been able to crack that. it is over-the-counter, so to speak. it needs to invest further. on top of that, we saw them go with more podcast acquisitions. with more acquisitions in terms of tech. it needs to build out a more sophisticated, targeted, meaningful system to do this. more spending in that element, but it is spending in the right direction. but spending is required. moving into the audiobook zone, fantastic decision across the board. but the company still needs to spend over -- the 2022 narrative we will slow down in terms of investments is not ideally going to play out over the course of the next year, 1.5 years when they puff up that technology. they're going to have an increased focus on that. ed: sandeep, like many say profitability will come with scale, this catch 2022 situation. we will get results from microsoft and off that after the

bell. for that, we bring in and arrived ronna. starting with microsoft. what do you want to see from this company that will bring you upside surprise? >> i would say the comments would be most critical. so far, we have seen a downward trajectory in sales. through the entire ecosystem, we are looking at the slowdown in demand. even stabilization would be welcome by investors. caroline: what is interesting is we have almost moved away from fundamentals a little bit. it is caught up in the hype of ai. how much do you want to hear about future revenue additions to this investment, or are you looking more at the here and now? >> if they give a guideline that they should start seeing some revenue upside next quarter, the quarter after that, people would like that. but it is so much in the test phase, in addition to cloud revenue or other areas, it will

be a while before we see that. the big growth factor, the big factor is spending and what we should expect over the next couple of quarters. ed: if we will try and read across the entirety of earnings season, i see the bread-and-butter businesses under the spotlight. what we want to see are some of the other sides of their business, take google as an example. a, we are worried. cloud could be a boost. >> their cloud business is small, but growing well. i think -- they have their space in the top vendors. amazon will never lose their top spot, microsoft will remain the number two player. google will be a strong number three contender for cloud infrastructure services. they have done a good job about it. >> how is the market position for these numbers?

have we written on the hype for both and worried that we could see a knee-jerk reaction after hours but then we drift through and decide where the growth potential is for these names? >> guidance is the biggest key. the numbers are going to be what they have. guidance comes on the call. the question is we are expecting numbers or guidance to be slightly down compared to what people expect. if it is really bad, and i think it will be a bad day, if they say we are seeing stabilization, new growth, it is going to be the exact opposite of that. caroline: we will see how cost-cutting comes into that. ed: we will. what a busy week ahead of us. bloomberg intelligence's anurag rana. caroline: improve your content moderation. the consequences. this is what we are hearing. telling big tech companies like youtube or alphabet, instagram,

even snapped, more on what the consequences are. checking out for a moment what is happening with 3m. it makes posteds other health -- post its, other health care equipment, screens you tap on your smartphone. a company that is trying to cost cut at the moment. we are seeing the impact on how these companies look at jobs over all. it is cutting 6000 jobs in the latest restructuring. from new york and san francisco, this is bloomberg. ♪

this is ge aerospace, advancing flight for future generations. ♪ welcome to a new era of flight. caroline: some 19 major online

platforms and search engines, including youtube, facebook, instagram, and put her will be subject to extra scrutiny and fines under new content moderation rules set by the eu. amy thompson joins us. remind us, the digital services act? >> the digital services act got rolled out by the european commission last year. it is all about raining in what big tech companies can do with your data. it includes things like bans on serving ads to minors, serving ads based on what the commission calls sensitive personal characteristics. like sexual orientation. it's got rules about combating disinfo, additional reporting requirements and transparency requirements these guys will have to follow. ed: there's 19 companies,

technology names, potentially impacted. some more than others. which are those names caught by the rules and the strengthening of the rules? >> nobody who would surprise you, i think. more than 45 million monthly active users in europe. it is all of the big guys. a number of google's platform, meta's platforms. facebook and instagram. snapchat, netflix, tiktok, amazon, apple. a lot of the big international tech companies are getting caught up in this. that is who it was meant for, really. ed: the penalties for some of those names potentially quite severe as a proportion of global revenue. thanks to amy thompson leading our coverage. some twitter users are growing weary of using the platform since elon musk's takeover. others are turning to blue sky as a possible alternative.

that is if you can make it off of the waitlist. our bloomberg news social media reporter joins us. what is blue sky? where does it come from? >> it is a twitter alternative in the wake of elon musk taking over twitter. people have not been happy with twitter, from a content moderation perspective, changes with verification. blue sky is an alternative that looks similar to twitter. and it's got the backing of jack dorsey, who was involved with twitter from the early days. it is giving people confidence to try it. caroline: a quarter of a million iphone downloads so far? nowhere near twitter's overall use case. how is it distinct, not only from twitter, but other competitors? i'm thinking of mastodon, which wants to be a decentralized social platform. >> that is the challenge, how you differentiate. a lot of them are very similar

to twitter. they will look similar on the feed. blue sky has a waitlist right now. they're trying to control how many can be on the platform. you mentioned trying to have a decentralized protocol. if you think about mastodon, they have different service. you have to be on a server to follow someone. that gets more complicated. blue sky is more straightforward in terms of onboarding. it will really be the question moving forward how they differentiate when they are similar. >> they look identical to me. i don't know about you. -- is believed to have gone to blue sky. people sharing screenshots of his profile on twitter. when you're scrolling through, it just looks like twitter. >> maybe that is not surprising, given it was born out of twitter. his history is it was backed in many ways. sort of a startup within the company. >> right. it is not super surprising.

you see the same with other alternatives. an alternative created by former twitter employees. all of them are sort of playing off of what twitter did because it was successful. the question will be will to convince investors to come on in a massive way. 25,000 or so downloads, you think about twitter, with 500 million monthly active users, it will be a challenge to scale. i think we will see that over the coming months and years. ed: it is important to go back to the big changes of the twitter platform recently, subscribers and verification. remind us of the latest on both fronts >>. >>think about verification, you have to sign up for twitter blue, cost about $800 a month. then you get your blue check mark. that has been really challenging. you have established organization through news

institutions, political figures, athletes, celebrities that lost their legacy check marks. it is not about being notable anymore. part of that is subscribing to twitter blue. there is also a new future release where you can subscribe to a person and access additional content. a ton of changes on the platform. the challenges are it is hard to tell which accounts are authentic or not. that is one of the main sticking points. caroline: as disney will attest earlier this week. inc. you for your reporting. coming up. another win for apple in the fight over its app store policies. we will dig in. this is bloomberg.

ed: time for wall street beat. we are focusing on first republic bank. san francisco california based bank. after the collapse of silicon valley bank, the chart says it all. earnings, deposit of flight is a huge concern. shares down 90% year to date. strategic options is the word they are using. >> the year to date chart is painful. all of this, the fact they missed analyst expectations for consumer deposits, they plunged 41%, worse than expected. even after the rescue attempts of the big banks in the u.s., billions of their own cash. the fact we are hearing that will have to cut people, it doesn't seem to put an end to

its own idiosyncratic issues. ed: particularly, the injection of capital that was supposed to be an injection of confidence. venture capitalists, startups were banking with them. on twitter, so many people talking about how we got here. how it got even worse. caroline: the fact they are focused on big mortgages to be wealthy people, and moved else well. -- elsewhere. moving from the world of wall street to the world of key tech, apple. we are talking legal. won an appeals court ruling. it was brought by epic games, the makers of fortnite. already a self-imposed change, trying to see the headwinds coming on it. the fact that the court sort of upheld its side of the story, were you surprised? >> somewhat.

i heard the argument on the appeal, it was hard to call what the justices were going to do. the lower court opinion was somewhat controversial. well thought out, but somewhat controversial. you had the three panel, three judges per you need two out of three to vote. one spoke a lot seemed to be for apple, one spoke a lot for epic, the third did not say anything. at the end of the day, pretty much affirmed anything the lower court had done. they disagreed with some things, but where they disagreed was harmless. even if the judge had done it differently, is still would have come out the same. it does not really matter, and they don't have to go back to her. they sent it back to her, an issue of whether or not epic has to pay apples legal bills, very minor thing, not the main aspect of this litigation. it holds, and apples walled garden still survives. ed: apple came out after the decision and said it was a resounding victory. they used those words.

nine out of 10 claims were settled in their favor. to the point you made, one was not. explain it to us. was it positive epic could take it away? >> the most interesting thing is the claim against apple was not really something epic asked for. it was an abolition on what are called anti-steering rules. rules apple imposed on developers that did not allow developers within the app store to push consumers somewhere else . outside of the app store, to buy the app at a less expensive price, or make urges is or less expensive, such as going to the developers website or app. the court said these don't violate antitrust rules, but haley california state law against unfair competition. apple has to let the developers steer users if developers choose to do so. it was somewhat good for epic and bad for apple. apple was kind of already going

in that direction. caroline: what is interesting, it is very u.s. focus, talking about state law, federal law. europe in many ways is changing the business model of apple. ed: that is right. i think they are responding to the digital markets act requirement. basically open the doors to outsiders in that market. >> we understand apple is working on that in europe. they have to. it will go into effect in 2024. apple will have to allow alternative app stores on ios mobile devices, which is what epic was pushing for in the u.s. there was legislation pushing through the same in the u.s., it had traction last year. i'm not sure it will going forward now that we have the divided congress. we will see. maybe the court decision can light some fires in the u.s. and they will push forward legislation that does the same thing the digital markets act does. caroline: end of the day, global companies, restrictions. we thank you so much, and of her

read. she's so on the money. we will take the pulse of the deal environment in fintech. michelle is with us. she has been making some deals. we will talk about it next. this is bloomberg. ♪

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caroline: welcome back to "bloomberg technology." i'm caroline hyde. ed: i ed ludlow. let's get a check on the markets. early-season is the main driver. nasdaq 100 off by a percentage point. spotify was the bright spot. across those indices, names are disappointed moving from the downside. underperformance in semiconductors. nasdaq golden dragon index, the u.s. listed chinese tech companies. down. down for a sixth consecutive

session. not much in the way of headlines. a lot of geopolitical risks being priced in. 10 year yield off seven basis points, 3.4%. in terms of specific movers, earning seasons the main driver. expectations for investors that across the technology sector are focused on a drop in earnings year on year because of the pain we are going through. advertising, the slowdown in corporate spending. that is what we are checking over the next five days. >> risk sentiment, but deals are still being done, maybe in the private market. we will talk about that backed by eldridge industries. just agreed to buy digital insurance marketplace policy genius. the deal first reported by bloomberg is official. we thought we would talk about it with the ceo. more alongside our very own show molly bostick. michelle, nice british accent we are about to hear from you.

tell us what you are trained to do, consumer facing with the backend, what do you provide that is different in the market? >> thank you for having me. it is about giving access to consumers, making sure they have education, the right content, the right insurance policies for them. ensuring that the motion of buying all the way through the lifecycle, owning the policy and claim, is a phenomenal experience. ed: talk us through the logic behind policy genius. what was the motivator? in this environment, was it hard to get done? >> i think there is never a bad time to do a good deal. when we found policy genius, we felt like it would fit together super well for us for the journey we were on. they were some of the earliest tech pioneers, built a

phenomenal consumer facing marketplace, has great technology at the heart of it, goes anything from need to fulfillment. anything from issuance to claim for policies. bringing those businesses together. a vision of open insurance, making sure it can really transform the lifecycle of insurance. taking provider -- a tech provider to carriers, distributors, and now, a tech provider and resource to consumers. >> i'm curious to tap into your expertise. you are using technology to attack problems in the insurance industry. you've also been the cio at ubs, have worked there for 25 years. you are on the board of deutsche bank. your focus on technology. if you look across finance, where some of the most compelling places you can see technology being used to a reinvent the wheel -- to reinvent the wheel? >> deutsche bank and ubs, and across the insurance industry, simplification is at the heart of everything we are trying to do. these are old companies that

have been around for decades, a lot of empathy for that. i was a cio for a long time. you've got a lot of siloed information which makes it difficult to get to your customers. when you look at people's balance sheets, having great technology, great data, sitting in immutable type of contract providers, it really gives you a different focus for the technology than you do. if you are on the cloud, if you've got cloud native applications, you can focus on things that differentiate your business and are not reconciling things all the time. >> why smart contracts? people thing about the new transformative technology, they say blockchain or other buzzwords. words that have become popularized over the last couple of years. >> we have industries where data privacy is at the heart of what

the people will trust you with. smart contract can live on top of any type of debt knology. we are on distributed ledgers. i think the banks are also doing the same kind of thing. we are talking about in immutable data asset that all the processes and capabilities can come to that data as opposed to having to move data around an organization, which is very costly. macro trends move to the crowd, still massive. i've heard people say that is slowing down. certainly not for the big financial institutions and insurance businesses i work with. obviously, ai is becoming more and more relevant, available, and exciting for our industry. >> let's go to the next right thing of buzzwords. how were you thinking about it how you think about making sure it is just an easy to access and

building productivity for your company's? > that is the word, productivity. we really see where the ai capable ai right now. the start is about making us more productive, getting insights quicker, insights to customer cookers -- customer quicker, and when we get more comfortable with privacy and regulatory requirements, we will expose it through our client interfaces and make the process more productive. ed: you are being nimble in the market with this deal, what ties it together is coming out of the svb collapse, your industry kind of acknowledges global finance needs to modernize. whether through ai or opportunity to move from traditional banking, look at the offerings from fintech. has it given you momentum, fintech, more broadly? >> i think so. i think people realize when whether it is regional banks or any part of the banking system

that is not operating in an efficient way, a lot of times behind the scenes it is poor data, it is too much technology. it is an environment with one of everything. it makes it difficult to kinda see the wood from the trees. when you have clean data and clean technology, you can balance your balance sheet properly. you can see what your drivers of cost are, what your margin is, and the impacts the products you are serving up delivered to your consumers. it is behind a lot of that age. it will get a lot more momentum to people saying we have to step back and create the technology and infrastructure for the future. not just around the edges. and sure tech is well behind fintech, they are on their second innings now. we are hoping to be some of the pioneers for the insurer tech industry to do the same. >> as someone who has seen many

cycles, what are the for ai and financial services? >> it is all about privacy and security. with everything we do from a technology perspective, working with regulators to make sure we are talking the same language, people understand what we are doing to secure data, the risks we are running, how we can recover cyber threats, attacks, etc., all of those things are things we have to work hand in hand, whether with regulators, shareholders, or customers, to make sure they are comfortable. we are taking the right steps to use these great technologies that improve servicing capabilities. but don't compromise their security or privacy. >> michelle cronin, great to have you -- >> michele trogni, great to have you. and continue to bring us conversations on intersection and finance. the trends to watch in the venture capital world.

generative ai. lightspeed's -- with us. -- michael mignano with us. conventional thinking delivers conventional results. at allspring, we break away with purpose. harnessing data-driven insights and boundless curiosity. we dissect the market from every angle. helping to build portfolios that redefine what's possible.

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ed: time for the vc roundup. with the net zero initiatives initiative, a group of 23 vc firms are banding together to figure out how to do carbon i's their portfolios. through this venture climate alliance, they plan to cut net zero out of their own greenhouse gas emissions by 2030 or earlier. the former salesforce ceo,

keith bloch, targeting $400 million for the fund. smith point capital will invest in enterprise software at the growth stage among those investing are current any mil -- cunning emailing. caroline: deposit on outlooks. the weight from $50 billion to $100 billion in assets. we are talking long dated securities, mortgages. all of this about an asset liability mismatch for the overall first republic california-based bank has at the moment. i be they sell them to u.s. banks, maybe it is about incentivizing them to buy above market value. we know the impact on silicon valley bank, the fact we have seen price destruction in long dated bonds. maybe you get a warrant, preferred equity to do that. all of it is about trying to stop indices by the fbi c. ed: we discussed that earlier in the show, when earnings hit last night, the seriousness of the

situation, everyone was discussing on twitter. they cannot believe after many larger industry peers stepped in, that we would find ourselves at this stage. caroline: let's discuss all of this with the perfect voice. a time to be a vc at the moment. mike mignano is with us. focusing on generative ai and supply chain and you used to lead podcast live video businesses at spotify. i want to start with spotify. how much of an impact is the backing stability at first republic? have you felt your portfolio companies and yourself have diversified enough? >> yeah, i think if you are a founder, whether you are banking in 2023 or 2019 when i was building my company, it is good practice to diversify across several different banks, like anyone would with any investment strategy. if you are a startup, you might carry a lot of cash. it is a good idea to be

responsible with it. to give that advice to a founder or myself when i was starting my company. ed: welcome to the program. good to see you. how difficult -- it is good to see you because things are difficult. on one hand, we told you the news about keith block starting a new firm and raising funds. on the other hand, founders absolutely desperate for cash to get rounds closed. across your portfolio companies, what is the situation for you? >> it depends on what you are building and what customers you are building for and how they are responding to what you're building. there will always be cycles to different markets, certain markets are more exciting than others. generative ai is a category that is very exciting to start up founders, customers, and venture capitalists. there a massive shift on. as a result, that sector is extremely exciting at the moment. caroline: let's go to the silver

lining. you have been investing in companies that deploy ai, whether it is -- some of these companies are getting big valuations. how are they adding to productivity in the here and now? >> every decade or so, a massive shift in technology. in december, i was vocal are believed generative ai would be as consequential to consumer technology as the iphone. i feel more strongly about that. i think it is potentially more consequential than the internet. it is changing the way we work, we learn, socialize, that we create. it is an area in particular. if you look back at the history on the internet, all forms get democratized by technology. it makes it easier to create. generative ai is accelerating that trend by decades. maybe centuries. like you said, i found an

anchor. the podcasting platform. we would have killed to have access to this technology even a couple years ago. i think all of these areas i mentioned stand to be vastly accelerated. but i'm excited by creativity in general. >> possibly before your time, but lightspeed was a firm that went to its lps and hard sold crypto. crypto is it, this is the big thing. until it wasn't anymore. now lightspeed it's going to its lps and saying the same about ai. it is the next big thing. you talked about the once in a decade technological change. what is the risk you see the same cycle we saw with crypto? >> with crypto, it was a lot of value generated from crypto. there still stands to be a lot of value generated. we continue to make investments in the space, especially on the infrastructure side. with generative ai, it is

hitting consumer applications right now. you mentioned home. also touching on the intersection of creativity. they are disrupting a massive market of presentation software. presentations are one of the most ubiquitous formats in the workplace. they are really hard to create. it takes a lot of skill and effort to make a beautiful powerpoint presentation. once you do, you are stuck with a 16 by nine grid you cannot look at on your mobile phone. they take the process, make it instant, beautiful, with the top of a button through generative ai. anyone can make a beautiful presentation. as a result, they are the fastest growing productivity company of all time. going faster than slack at this stage, faster than dropbox. in terms of user growth. they are just exploding in users because the value is undeniable. that is what we see across the board for so many different applications. caroline: just got to monetize

it. thank you. great having time with you. mike mignano. back to the breaking news. first republic bank saying it might be looking to people familiar, assessing to sell off some assets. this is about mortgages, long data securities. is it about stopping fbi see taking it over? >> absolutely. we know the bank advisers have wanted to avoid it. they can find another solution as they believe it. we are learning they are exploring 50 to 100 billion dollars worth of those long dated securities and mortgage as part of the rescue plan. there may be sweeteners for potential buyers part of the deal. potentially warrants or preferred equity to buy assets. when we looked at first republic, down 30%, 90% on the year, certainly in dire territory. loans at the end of the quarter

were $173 billion. deposits were 100 billion dollars. concerns about the strength of the balance sheet. the hope is by getting rid of assets, selling assets at above market value, there can be something for the buyer to hang onto and help first republic, albeit at a much smaller bank make it through the worst of the crisis for themselves. >> one of our sources says if that is the case, the u.s. government might need to come in and facilitate the negotiation, the conversation. it goes back to last night in strategic options. what were the strategic options on the table as it was outlined by first republic? >> selling assets is something we have not only seen first republic explore, but other regional banks already selling assets or consider doing so, as well. there are not that many buyers in the u.s. that can be buying books of this size. the question is are these big banking buyers, are there

private buyers who can be taking it on? will the fdic allow those things to happen? the idea is to have receivership. to the extent really large books of business are sold, the government does take a look at this depending on whose hands it goes into if the books of business or this large indeed. >> jumping on the breaking news with us. first republic bank under pressure in terms of share price. we have to talk about artificial intelligence. we have to talk about news coming out of cisco. talking about how ai software will make phishing attempts much harder to detect, requiring companies to adopt new defenses in contrast. the cofounder of ballistic ventures and former president of at&t cybersecurity department told us how ai can help in the fight against cyberattacks. take a listen. >> you can apply ai to automating threat detection and removing the scarce human

capital resources available to focus on higher important things. you cannot rely on ai to completely automate your business. >> let's get to a current at&t executive, the chief operating officer. your view on all things to do with a future security ramping up to the rsa coverage tomorrow. is chet gpt, is ai going to be a help or hindrance for security overall? >> thanks for having me. i think for enterprise customers, when they think about keeping workloads and employees safe and secure, they need better network solutions that are software enabled to defend against a threat that is invariably likely to be dynamic and changing quicker every day. as mentioned in the previous episode and the announcement with cisco, the tools that make us more productive and be used -- can be used for good and can be used for bad.

what i'm excited about at&t and what i hear from enterprise customers is the parameter they have to defend is getting more complex. not only a hybrid cloud environment and applications, but the end-users are also in a hybrid environment connected either at home, during productive work, or on the go. what the industry is looking for is the expertise at&t brings in providing an integrated converse solution. and an architecture that enables them to respond quickly to the very dynamic changing landscape. ed: i'm looking forward to being on the ground at rsa. an obvious question is why is at&t there and interested in cybersecurity? you went to the enterprise side of your business. think about the network, the large body of customer data you are responsible for. must be a big stress for you making sure you are safe and

secure. >> it certainly is. we operate one of the largest networks in the u.s. what we do at at&t is important. not only for all of our customers, but the nation. broadband infrastructure, keeping it safe and secure is a priority in our 170 year heritage. the reason we are engaged personally, or internally for our own network itself, we have heavy lifting and work we do day in and day out keeping our own network safe and secure. we have done this with network innovation in three areas. we have actually embedded security capabilities native into our network. we couple it with the ability to see across both the fixed and the mobile networks. they don't really discern between how they are connected

to the internet, whether they are large enterprise customer or consumer. but they know they need that information to be secured. at at&t, our priority is to make the connections fast, reliable, and secure. ed: we asked our audience how top of mind cybersecurity is, and the respondents said it is a big concern. you have added fewer new customers than you have had a year ago. you kind of you turned on this internet services. is cybersecurity what makes you competitive in those fields or do you have work to do? >> as an industry, we have work to do. i think at&t has a marquee advantage. we added a lot more customers than the phone that had customers. think about the number of connections for the connected cars we enable across the nation, you can only imagine you would want those interfaces to

be secure. especially in a day of self-driving and autonomous vehicles and the promise of what we are bringing to life for 5g. i will never say the work is complete. it is a very dynamic landscape. i would tell you are enterprise customers and consumers, ranked coverage as high as possible in terms of performance and have elevated security almost equal to the core network performance. it is important for our entire customer segment. ed: at&t's chief operating officer, jeff mcelfresh. caroline: back to the breaking news. looking at session lows. 31%. a stock that has already collapsed 90% in terms of market value. the reason we are worried about the viability of the bank, according to exclusive bloomberg reporting, they are weighing in up to $100 billion in asset sales, long dated securities, mortgages. all of this hopefully to be above market value.

have to offer incentives to sell them. >> steep declines year to date. that does it for the show. caroline: that was this edition of "bloomberg technology." tomorrow, more special coverage coming from you. the ceo. this is bloomberg. ♪ ♪ (♪♪) this electric feels different... because it's powered by the most potent source of energy there is ... you. this is the lexus variety of electrification ... inspired by, created for and powered by you. ♪ we moved out of the city so our little sophie inspired by, created for could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far.

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♪ >> live from bloomberg's world headquarters, i'm matt miller. >> from our studios in washington, d.c., i'm kailey leinz. welcome to bloomberg crypto, a look at transactions and people shaping the world of decentralized finance. bitcoin's rally runs out of steam. the ceo of a data provider discusses the hurdles that remain in the next potential catalyst. >> tether's