we will get perspective on gaming. twitter ad sales plunging. we will discuss the woes facing the incoming ceo as the company forecasts more declines ahead. all that and much more. first, let's check in on markets. technology we got the service's data showing weakness, pulling back yields in the two year yield. maybe we are thinking the fed cannot hike to the way previously. bitcoin, crypto on the downside. they see sec iron -- ire with a

selloff on the back of that. tesla of one point 7%. chinese data car sales looking at growth with significant growth year on year after we see the shanghai factory coming out post-covid. meta the outside and they see it outperforming. chip stocks lagging today. it off by 1.2%. every single chip name was on the downside as we see citigroup going negative. let's look at what we are powering in terms of the out performance. it will be apple, current market cap $2.9 trillion. we saw it just hit but never closed at that number back in

2022. we see it up 40% year on year for this particular stock. and we want to go to the apple worldwide conference, kicking off and running through june 9. ed ludlow is on the ground. what does it feel like? what is the goodie bag like? ed: if you like the biggest event for apple in a decade. a mixed reality headset, $3000 price point, carbon fiber, aluminum, glass. the question for this mixed headset is what is the slate of content? what apps are ready to go? the price point is interesting, high enough to make a profit but low enough not to price them out of the market.

this feels like the biggest move into a new category, an historic woman for apple. caroline: let's look at all things apple, all things video. this is a price point that is going to be high. it isn't about margin and scale but about reinventing what we think of as a virtual reality and ar as well. ed: u.s. me what it is like on the ground, it is seeing familiar faces, veterans of these events. one is the printable analyst at creative strategies. you heard my preamble about the mixed reality headset erie what is this moment in apple history for you? >> it is a big moment for tim cook and the announcement of a new era and new market, building

off everything he has done for the company since he took over leadership. we are going to look at opportunity and enterprise as well as opportunity and content. those are in my opinion the two areas where the vr-ar mixed reality headsets are like. ed: $3000, 16 gigabytes ram memory. it really seems like the big question is what you could actually use it to do. carolina: that is the right question to ask. right now it doesn't really matter in terms of you are looking at early adopters to figure out what you are going to do with it even if it is $3000.

you are going to look at the mass market will be ready for it . there is opportunity to create the ecosystem in the same way as apple. a good comparison is the ipad, where at the beginning you were using ios apps and developers came with dedicated. i wonder if we will see a similar theme here. ed: let the morning going to the data, 3000 globally in augmented, less than 8,000,004 vr. -- less than 8000 for vr. carolina: the classic build it and they will come. apple has done that time and time again. coming into a market that hasn't quite taken off or it was and then it stalled and so they are able to re-energize that. from a developer standpoint,

this offers a huge opportunity. caroline: meanwhile, the rest of the market is just completely focused on artificial intelligence it feels like and there is a mixed viewpoint. some like wedbush think we will hear a lot from apple and some are saying this is not the time or place and wait in a year or so. what do you make for apple's ar play? carolina: apple has been talking about -- ai play? carolina: apple has been talking about ai for a while. it was about siri and then machine learning which is still part of ai which is what you need for ai but apple is in a different place compared to google or microsoft, because they don't on their own cloud so they are dependent on others to

run big models. the need to bring us back to what is the value of artificial intelligence and link to that is the value of artificial intelligence to me as a user. i would argue no one else knows their users as much as apple does. caroline: to that end, anything else you are excited about what will be unveiled? we know they are having an update to financial offerings and it feels like it is not a great place to be for fintech and how much more apple could own in that. what excites you? carolina: this is the developer conference oh really interested in seeing what other enhancements or platform from the ios and mac will bring. we also know there is likely to be some new max and apple is

continuing in an enterprise. it is always the consumer company but the reality is they are gaining enormous share in enterprise and if they are bringing to market a 15 inch at an aggressive price point, then the share will grow for them. ed: the developers love wwdc. it was like what ios 17 software per what are you most excited about? carolina: i expect big things. i expect personalized care, if you like, the ability of pushing more health and security devices . we saw some features last year.

those are the things i am expecting. it will be interesting to see what we see around messaging and face time whether this little fight with android and rcs will end this time around or not. ed: at google they referenced this fight in a hint-hint way going back to the headset, for those developers in the audience, what is it they will want to hear? ultimately there are wondering if the apps will be available on the mixed reality headset. carolina: four developers, it is how easy is apple going to make it for them to take those that are already available and import it to make them better and other

opportunity for them to monetize . how much richer will it be to allow them to monetize more from the app. ed: bloomberg reported that apple hopes to sell 900,000 units of the mixed reality headset in year one. what is your reaction to that -- low, high? carolina: as hard to tell before seeing the headset and what the value is. a lot of it will develop -- depend on how much can you do with it. from a content perspective, we have seen apple really doubling down on sport. caroline: that is interesting, where this makes the most since -- sense. much has been said about the quest three coming on the market , we understand it will be the $500 versus the 3000 apple. where the penetration needs to be felt is productivity, not

just gaming and health. will this be a productivity kind of use case immediately are is this ultimately aspirational? carolina: i do think there is an angle that is productivity related. we are seeing microsoft play with that and then walk away from it. there is definitely opportunity there. i was talking that apple is now creating that space for them in business to be taken seriously. ed: i was looking at the history of wwdc. it wasn't cool then but 1983 in a hotel was the first conference what does it mean to you when you sit in the audience and you listen to it? share with us your experiences and what you get from it. carolina: i always remember my first one, which was after the iphone in 2007.

i came out asking if the coffee was spiked in the morning, because the buzz you feel is honestly something i always compare only to nokia events, i date myself here. back when nokia was doing smartphone business. there is nothing else quite like it. caroline: absolutely fascinating when it comes to all things. nokia, what an old-school viewpoint to be bringing. i just have one last one, ultimately when we are thinking about the event and excited and many people would say the share price tends to fall after these sorts of events, the hype is too much for what ends up for the

reality of who are you excited to get on the stage? carolina: as always -- ed: i think we lost carolina. caroline: coming up, we will talk to apple in the $3 trillion outlook for that particular stock. nancy dowd -- nancy daoud will be with us. this is bloomberg. ♪ what do you see on the horizon? uncertainty? or opportunity. whatever you see,

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caroline: apple touching the

record high nearing a $3 trillion market capitalization. that is all at the wwdc event. techs have been the main driver for markets this year and they continue. nancy daoud is with us from ameriprise financial services. always great having you with us. we continue to run on fumes when it comes to ai and big tech being a safe harbor and a growth player as well. nancy: i'm always very excited about the technology sector, even when it was taking last year. i kept saying what a great opportunity is if you're in it for the long term because the day to day swings can be daunting. of course, technology is the way of the world and there is more coming, especially with ai where we will have another

transformation of our lives and the entire world. it is very exciting indeed. you just have to have a little more information. there are a lot of unknowns. caroline: there are in it means for someone like citi saying it has gone too far. artificial intelligence becoming steeped in business models. do you think we have run up too far what ultimately gets painted of a clear picture of what it does to these companies? nancy: when it comes to buying stocks, the math test rule. clearly the earnings are just not living up to the valuations at this time. unfortunately, that is what counts when you are buying stocks. so yes, there is a little too much excitement going on here and that will account for a great deal of ups and downs and

significant volatility. when you have eye-popping returns over 100% year to date and you look at last year and down 50%, those are big swings. an investor would have to have strong stomach lining to put up with that. caroline: i am looking at the forward earnings on apple currently trending in excess of 30 times, a company that will post a decline in revenue for this fiscal year. a company that has that share market, can you fight against the super seven or the magnificent seven stocks in the nasdaq this year? nancy: we are still in the business of meeting clients' long-term goals. we are buying companies that engage in ai and all of the excitement but not necessarily

depend solely on that revenue. they have to be more diversified and have earnings and revenue from other sources as well. that is probably the most prudent way to enter this arena. for the most part, we will be wait and see it, because we still don't know the good, bad, and ugly of what ai has to bring to us in the next few years. caroline: when it comes to the macro picture, today we see services weakening and worried about whether the federal reserve heights -- reserve hikes rates. how is that for tech sector you want to be? nancy: i believe the fed will pause as mr. powell indicated and i don't think there will be rate cuts any time soon and certainly not this year. technology is a sector that is here to stay. this is clearly something we

live with and is involved in every aspect of our lives. it is not going anywhere and it will evolve more and faster. it certainly is the longer-term outlook. again, longer-term is the emphasis because the day to day swings can be extremely volatile and it is not for the faint of heart. you have to have a longer-term perspective. caroline: and cross asset, are you thinking long are getting into technology stocks that have diversified or is it more about the bond market and the overall capital structure? where is the right place to be allocating at this moment? nancy: for the longer-term, the entire tech sector will be terrific. however, shorter-term we are taking a much more defensive approach and going on the fixed income side or structured note side. i think that can create a little

bit of an offset for the daily up and down and crazes and the downfalls. caroline: to that point, this is a global narrative. we have seen ai take when whether it is in asia or traded here in the united states and some european stocks, do you allocate primarily to the united states or do you think about allocation globally? nancy: at this time we have stuck mostly with u.s. and have not ventured outside of the u.s. too much as of yet. i don't believe the valuations there are going to be as profitable as u.s. there are many more problems outside the u.s. and what we have here. also, the currency exchange plays a very big part of it still, unfortunately. when the dollar is still this strong, it is very hard to bring alpha into the portfolio of

investors. caroline: many private wealth clients are still invested in crypto? nancy: all of them are. they all ask questions about it but i am fascinated by how little they know about it. it is fascinating. i think every new craze for every new headline does your -- headline indicates how little people actually know about what everybody is jumping into and that is fearful in my opinion. caroline: great to have some time with you. coming up, discussing steps microsoft is taking over lizard. crypto, what do we know? we understand the sec is having charges against binance.

wall street's main regulator accusing the chief executor of breaking u.s. securities roles. major escalation in those woes facing the biggest crypto exchange. this is bloomberg. ♪

♪ (upbeat music) ♪ ( ♪♪ ) ( ♪♪ )

( ♪♪ ) -awww. -awww. -awww. -nope. ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. caroline: i'm no firm talking tech. an ipo of education technologies shoring up cash. the ipo of the unit set to take place in the middle of next year. byju said it is making a quarterly interest payment of $14 million. let's look abroad and look at

beijing's ban of micron calling retaliation from washington. gop officials have called for gina raimondo to work to ensure they don't take advantage of the market share left by the micron blockade. let's look at an update in the $69 billion takeover, brad smith will be meeting with jeremy hunt to voice frustration over the decision by the regulator to block that takeover. expecting to point to the benefits of the acquisition, for gamers, the move to block the largest merger, a decision that will play out in the u.k. antitrust court. we have more for you in the world of application of virtual reality and aiming. wwdc ed, what is coming up?

nancy: we speak to ray when -- ray wang. this is bloomberg. ♪ ales tax returns? ahhhhhh business license guidance? ahhhhhh -cross-border sales? -ahhhhhh -item classification? -ahhhhhh does it connect with acc...? ahhhhhh ahhhhhh ahhhhhh it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management.

caroline: welcome back to bloomberg technology. a quick check on the markets. the nasdaq trades high and higher up .7%. the nasdaq 100 is the big jump. muted trading in the rest of the day and benchmarks were about the macro picture in terms of services on the decline. interesting moves from opec plus and cutting from saudi arabia. bitcoin under pressure after the sec goes after the founder of

binance or binance itself. looking at individual movers, forever chemicals, a postponement to a trial and maybe striking a global deal and how to settle what is the forever chemicals affecting water. powering ahead, up 5% on pelleting -- alateen -- p alotene. up 2% on apple. $2.9 trillion in terms of argot capitalization, record on the market price. it feels as though energy is there. ed: if we get what we are

expecting, a three thousand dollars mixed reality headset, outward facing cameras give us the augmented through next-generation screens and giving us the virtual reality component and a mix of carbon, aluminum, glass, plastic. it will be able to carry the core suite of apps that we know from ios on iphone and ipad. the question will be what is the big thing that justifies the $3000 price point of functionality. around fitness and health, can you imagine working out using a mixed reality headset? caroline: that is the point, the stung -- stumbling locks they have had they make you feel sick and they are heavy. this is a different vision from what tim cook had that was can be far lighter throughout the

day. ed: we think this headset will be akin to something like ski goggles meaning there isfor glasses wearers like myself. let's remember what the worldwide developers conference is. a big part of the audience will be building the next functionality for mixed reality headsets. we will get interesting updates not just on mac and ios but what we think is coming. caroline: still a lot to be talked about, particularly the macs. we are pleased to have ed joining us. i am in new york and you are in california. right now, ray wang is in taipei late at night joining us. you feel vr, ar is this an area

apple will dominate the ecosystem we have been waiting for? ray wang we have waited 12 to 13 years of this. apple was one of the leaders in augmented and virtual reality. they have been cryptic about the future world in a mixed reality world and this is probably the start of where we will see the move from 2d to 3d, from typing to gestures and eye tracking. we are at the very beginning but it is a big market cap we are the outs, $451 billion by 2030. the real thing is, how do you take the device plus content plus distribution to get there and that is where apple will have the magic sauce. ed: is reporting that apple

intends to sell 900,000 units of the mixed reality headsets in year one. what does that tell you about their confidence for uptake and demand at that price point? ray: that is a price point not for the mass market but designed for the experts, developers and content creators that are dying to get their hands on something to make this metaverse world work and move from augmented reality to appoint where we can actually see apps for the b to be and theb to c markets. i will be curious to see how they put it together. caroline: you're in taipei at the moment, is this a supply chain that has to depend on china? ray: it is a supply chain question that will happen on multiple forces where you get glass, lead pay is one of the

leaders in supplying products. having conversations over the past few weeks and over the weekend, it sounds like the supply chains are getting ready to ramp up for a different type of approach. caroline: i think we are focusing in on the supply chain and when this becomes available. when will it go on sale? ed: you and i had that twitter with mark gurman and that was such a big question. this is a product that has been delayed several times. apple hoped to unveil it sooner. could we see this in december? i find ray's answer on 900,000 being good evidence they have their supply chains ready very interesting. how quickly do they need to onto

a lower price point model in order to get this segment some momentum? ray: that is a great question. i believe will be something in the next 12 to 18 months. you've got to get the content in place and they have to get another iteration to at the new operating system is for whatever this headset be called. whatever it will be is how we will figure out where we get to in terms of the right type of content, the right mix and use cases. they have to sense with the use cases are in enterprise as well as on the consumer side and that is what makes this exciting. and that is what makes wwdc exciting. ed: i reported that the reason why they cut it was because the price -- the demand wasn't there. can apple crack that problem? ray: i definitely think so.

and i think the use cases around training and interviews and use cases happening around hoping people on board are used cases but at the price point it was put at and the lack of content and developer interest, i think that was the challenge that is where apple may crack this, especially when they talk about coding new world. they will show updates that will help you understand how they are evolving. if you think about this as a unified force, this could be the first step where we see ios, ipad and others come together. that would be the interesting development to see the software platforms unify against this new medium. caroline: the power of the ecosystem ultimately. i am interested in your take is an elephant in the room because

every company is talking about and earnings call and statement, artificial intelligence. do you think apple will go there much? ray: living in cupertino, california, i can tell you they are ramping up on ai and engineers. this has been going on for the last five years. it is more like ai is embedded in almost everything we do and here are the applications that make sure life better. that is the difference between apple talking about ai versus the weird data between microsoft and google trying to outdo each other on the ai wars. caroline: that battle we love to talk about. great to have time with you. keep on banging the drum in cupertino, california.

we have distinct conversations about broader future of gaming. this is bloomberg. ♪

caroline: time nor for our bc spotlight. -- vc spotlight. how will games reshape the internet. there is a broader gaming thesis. joining us is amber atherton. on a day where we look across

apple and the making of may be-ar to the masses, how much does virtual reality or augmented reality bring to bear your future analysis and thesis on gaming? amber: it is great apple is getting into the game. they are the best when it comes to computing hardware. this is gaming on the iphone was critical. it will be interesting to see what developers do with this new device and what venture outcomes and opportunities can be there. caroline: how much is vr-ar going to end up being the way in which we work and how much does it become game if i'd -- gam ified? amber: it on one end actual

games and then game like experiences. for example, kudos is a wallet that is helping. i think if apple can solve the function problems and the comfort of having the device, there will be a lot of opportunities for this generation to continue to live and play in virtual worlds. half of u.s. kids play roadblocks every day. for a new generation of consumers, it doesn't feel like gaming, it is where they hang out with their friends. caroline: when we were thinking about web three avatars, many would put meta there, how much does web three depend on vr-ar becoming reality? amber: i don't think the two are

intertwined. what i learn is while technology involves fundamental challenges they remain the same. what we are looking at is founders building with weather that is blockchain, ar vr, ai, we want sustainable is this is an founders who will think about the challenges alongside the opportunities. caroline: how many farmers are seeing opportunities in artificial intelligence in your world? amber: i think it is impossible to ignore. if you are a founder you have to embrace the fact that this is a huge landscape shift and presents a huge amount of opportunity. in game plays specifically, ai, creation, there is so much that can accelerate the founder journey. we are excited about the portfolio companies experimenting across the board with how this will help them accelerate their roadmap and also allow players to have a

more interactive personalized experience. caroline: when you are looking to write checks and early stage one person with an idea and helping build around that, is it competitive at the moment or our checks being written? what valuations are you looking at? amber: this is a great time to build when economic times are tough some of the best companies get built. we are seeing very interesting talents come out of companies across silken valley looking to ride the -- across silicon valley looking to ride this wave. in between gaming and consuming culture, it is difficult to ignore that. gaming has a fundamental impact on culture broadly. we are seeing a lot of excitement out of companies across the board looking to take advantage of this opportunity right now. caroline: what is interesting

about your journey is you are a founder and then your company was bought. how are you thinking about the landscape of companies? are they being bought earlier will we see companies eventually go public even though you have to wait longer? amber: ruin is waiting for the ipo market to pick back up and that could be towards the end of this year. m&a activity still vibrant right now. the challenge with virtual worlds remain the same, you are thinking about moderation, tremendous scale you need to monetize with ads. so despite technology that mixed reality world, there are fundamental challenges ahead. caroline: monetization is key for many.

thank you very much for joining us. coming up, we are going to talk about not only monetization of apps but for apple, waiting on tim cook to take the stage. who else we joining him and what story will they tell about the new headset? we will have much more. this is bloomberg. ♪

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caroline: we have been talking about what is going viral. tim cook moments away from starting his keynote for the launch of the mixed reality headset. when us is mark gurman. how much detail will we get about when we can put them on our faces in splash up to $3000? mark: it will focus on the demos and what it will be able to do. it is a four to seven months away from production. they are starting early test production. it is at a stage which is a development cycle and not at the final hardware yet. it is still a prototype. it probably will not go on sale until january or december at the earliest. it is possible they will

announce the price or not today but we believe it will come in at the $3000 range give or take a few couple hundred dollars on either end. the important thing is drumming up interest and getting developers on board and showing the world what they have and get this thing to market at the end of the year or early next year. caroline: we were talking about monetization and how difficult that is but ultimately what is this for like apple launching such an expensive ar vr or is it about the ecosystem? mark: it is about the ecosystem. the app store will be a big part of the launch as well. clearly this is a hardware and service play. long-term, it will make money and it is going to probably be maybe a flop or start slow and over time it will be one of the most crucial products and potentially average to a future

after the iphone. caroline: you are going to be busy all day here thank you for spending time with us. let's look at twitter. a new york times report shows ad sales slumped 59% from april to may compared to this time last year. really, i thought that advertisers were coming back. it doesn't look like it. >> that is what he said but advertisers remain hesitant because the -- there is still hate speech and misinformation and the check mark debacle elon musk has made it problematic tweets. advertisers are worried about brand safety. it does not super surprising but continuing to be a struggle for twitter. caroline: probably not a delightful report for her to

read on her first day of the job, right? aisha: not delightful at all. i expect she had expectations. must has said revenue for advertising is down 59%. the struggles have been out there and known. she plans to use her relationships to help bridge the gap. caroline: we are not expecting things to change overnight. are we expecting hiring to occur? they have seen key exits on trust and safety. aisha: you would expect linda to bring in people period no she is bringing a person who used to work with her at nbc universal. must have talked about probably needing to rehire some people who were let go in the initial rounds of cuts. i think they will have to do that and beef up their team to

handle expectations that advertisers have around brand achy and chuffed -- trust -- brand safety and trust. caroline: that does it for this edition of bloomberg technology. wwdc is about to unfold what we you hear about augmented reality and what is the price point and application and in terms of health? also finances, plenty in terms of operating system upgrades. macs will be front and center for a sophisticated suite of pcs, whether working or playing. apple, any moment now from cupertino. we have ed ludlow from that and we will hear what tim cook has to say and he hits the stage alongside the executives. listen to the bloomberg

technology podcast. you can listen to it on spotify and i heart. stay with us throughout the day. this is bloomberg. ♪ ate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh it's easy to get lost in investment research. introducing j.p. morgan personal advisors. hey david. connect with an advisor to create your personalized plan. let's find the right investments for your goals okay, great. j.p. morgan wealth management.

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matt: welcome to bloomberg markets. i am matt miller. on this monday, investors are searching for direction. let's get a quick check of where markets are headed. right now, about the s&p by about 0.3%. big, big stocks hitting record high. the biggest one of all is a record. the u.s. 10-year yield rising just a bit as investors sell off a little of the debt. 3.6985 is the level they are. we are talking about $1 trillion of treasury issua