>> from the heart of where innovation, money, and power collide. in silicon valley and beyond. this is "bloomberg technology." with caroline hide and ed ludlow. ed: ed ludlow here in san francisco. caroline is off today. this is "bloomberg technology." coming up on the program, full coverage of the tech companies making headlines from virgin galactic's space flight to earnings mike ron's earnings. plus, a.i. video start-up runway raising an additional $140

million from google and other investors. we have the exclusive interview with the c.e.o. you may know him from man versus wild, now bear grylls is tackling disinformation and pushing the digital literacy using a.i. he joins us later this hour to discuss his new initiative. we are treading water when it comes to the tech sector. the nasdaq 100 basically flat. we will get into micron in a second. the u.s. 10 year 30 basis points , 3.8%. two rate hikes priced in right now. we are digesting the commentary from global central bank leaders. 24 hours ago fed chair jay powell saying a recession in this country is unlikely. bitcoin heading upwards. 1.2% higher.

let's get to those stories in the individual movers. top of mind for me is move -- coinbase. up 2.4%. they want the suit from the s.e.c. thrown out. sonali basak join us with an exclusive conversation. virgin galactic. we will go to mexico were virgin galactic's first spaceflight has just touched down. ending on micron, a bullish outlook suggesting we are coming out of the trough when it comes to memory chips. there is debate on the street about whether this recovery that micron has outlined is going to happen. let's get the reaction and analysis and bring in mandeep singh of bloomberg intelligence. mandeep: if you look at the guidance that was above

consensus, if you look at the inventory gaze -- inventory days , the last quarter was going to be the peak. clearly they are writing down less inventory. this quarter they only wrote $400 million off inventory and they did not give us enough data points. they talked about high-bandwidth memory but they did not give us qualification of how much exposure it is, so that is why i would say it was a mixed quarter. at the end of the day there are three players in memory and if generative ai is a secular trail , you could extrapolate that there will be memory demand just because it goes hand-in-hand with the chip capacity. ed: i love nerdy out on d-ram and ram.

it is such a commoditized chip here the story that micron was playing was that all of the smart phone makers have built up the inventory and they work through the inventory and they were going to start ordering again but that kind of contrasted with the outlook for the markets, how many pc's will ship this year, how may smartphones will ship this year. what have you learned through micron's commentary? mandeep: they lowered their pc shipment forecast for this year. smartphone shipment as well, lowered by a couple of percentage points. near term their high exposure to pc's and smartphones, if that makes up 70% of their sales, you could argue that given the high exposure they have to these two pockets which are unlikely to recover in the second half, it makes sense that they still have work to do in terms of working

through their inventory and the orders are not going to come back so soon. they are cutting back supply, which is a positive. when you think about the dynamics of commoditized space, the supply demand balance is key. they are reducing their supply. they would hope that samsung is doing the same. what it could do down the line, 2024 or 2025 is you could see a pop in pricing because right now pricing declines are moderating but no one is expecting prices to go up for memory. if the supply-demand balance is restored, you could see the pricing pop up given the tailwinds we are talking about from generative ai. ed: mandeep singh, thank you very much. let's get to new mexico. virgin galactic officially launching and landing in the last few minutes the first ever commercial spaceflight. our space reporter in chief in new mexico.

what happened? lauren: the crew just arrived. everyone is celebrating. you might be able to hear some cheers. it is all smiles. it is a perfect flight. you might see the clouds behind me. they obscured our view from the ground but everything went smooth during the actual flight. ed: the context of this mission is it is the first commercial mission. it is the sixth mission in total above earth's atmosphere. it seems strange to look so far ahead but what is next? what is virgin galactic going to do? this is a company that has struggled and had some real tragedy and is behind the original schedule. loren: it really was leading to this point. what happens next is they need to start launching regularly and up the frequency of the launches. the plan is to do monthly launches. the next one is scheduled for august.

today's flight was a research mission of the italian air force but soon they will be opening up to the 800 list of private astronauts that they signed up many years ago. soon you might be seeing high earning flyers as soon as august. ed: the airplane takes the craft to 50,000 feet, they separate the ignition, what was that experience like on the ground? was there nervousness at spaceport america? was your heart racing? loren: there were launch nerves whether it is a rocket that launches from the ground or virgin galactic in the air. you can feel the energy start to tighten on the ground. we were hoping to see the ignition ourselves but we did not see it. we were able to watch it from the livestream and once that happened, everyone let out that

relief and cheers and applause happening. it was a special moment to be here among all of the employees who worked really hard to get to this point because it has been a long time in the making for them. ed: loren grush on the ground in new mexico. she messaged me at the moment. thank you for your life reporting. next up, coinbase looking to get their s.e.c. lawsuit dismissed, saying it lacks merit. we spoke to the chief legal officer earlier. paul: for an exchange commission to claim more than two years later that we were learning an unlawful enterprise with demand it requires to consider protecting investors and they are very -- their very name requires them to reply to expertise in securities and exchanges. it does not make any sense. ed: let's bring in sonali basak

who conducted the interview. sonali: coinbase's stock has been flying in the face of these crackdowns. it is at more than 100% this year. at the same time, it is up today. this is more than a 100 page response that coinbase has filed against the s.e.c. saying it intends to ask to dismiss this case. one interesting part of this is the argument they make about the s.e.c. allowing for the ipo in the first place and going through the disclosure forms already. our bloomberg reporter makes a great point that a lot of experts wonder whether this is really about the s.e.c. repair disclosure more than identifying the legalities inside of coinbase's business. it is an interesting case and a bellwether for so much of this industry. it also comes at the same time as coinbase being listed as the custodian for blackrock's etf

tied to bitcoin. really on two fronts. one is a tense story and the other is the hope that they will be approving the bitcoin etf sometime soon. ed: we are looking at shares. they want the suit thrown out. is this a real legal move or is this posturing? sonali: not only do you have a chief legal officer who formerly worked at facebook seriously in tune with the innovative landscape out there, not his first rodeo, you have them working with sullivan and cromwell, one of the biggest law firms in the world. we have had them tell us a few times now that they would take this to the supreme court if need be. they are very serious about fighting this to the end no matter how much uncertainty that creates in the interim. ed: sonali basak bringing us that reporting and exclusive conversation. thank you. we will track that story. coming up, chatgpt's openai is

being accused of stealing vast amounts of personal information for its artificial intelligence. we will bring you the latest. i am seeing breaking news. the pokemon gold maker is closing their studio and canceling the game. niantic ceo announcing it in a blog post. so many of you are tracking that. value village opening price, $24.77 with an ipo at $18 per share. 24.70 dollars per share. we will continue to track how that performs. we have had some energy in the ipo market in recent weeks. this is "bloomberg technology." ♪ fresh, warm hot dogs! when i'm not selling hot dogs, i invest in a fund

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ed: let's get back to that breaking markets news. savers value village opened at $24.77 per share. that gives it a market cap of $3.9 billion. we are trading in this moment at $24.40 per share. this is the fifth biggest ipo of the year based on money raised. we talked about carver, the fast casual restaurant chain. not so much in the technology sector but it on your bloomberg terminal and that is what savers value village looks like right now.

trading at $24.41 after pricing at $18. let's move on. chatgpt creator openai is accused of stealing vast amounts of personal information to train its artificial intelligence models. the 157 page lawsuit claims that openai violated privacy laws by secretly scraping 300 billion words from the internet, tapping books, articles, websites and posts including personal information that was obtained without consent. we will continue to track that and see openai's comment. microsoft ceo is guaranteed that call of duty will stay on the playstation. this after microsoft called on the activision co2 testify in federal court that the company's $69 billion tie up -- sega

dismissed speculation it may be the target of acquirers like microsoft. the studio stressed it intends to remain part of a bigger japanese entertainment conglomerate. the coo told bloomberg news that while the game publisher maintains a close relationship with microsoft, it is not open to acquisition talks. shuji: we feel honored. we feel close with microsoft. they always show us respect. we have really been having a good relationship with them. we really appreciate that they somehow value us. >> does sega have any intention to be acquired? shuji: not now, no. ed: let's get to another top

story. lina khan's federal trade commission has already filed three cases against amazon. now she is gearing up for the big one. in the coming weeks the ftc will file an antitrust lawsuit focused on amazon's core online marketplace. joining us to talk more about this reporting is leah knighton. what are the sources telling us? leah: we are expecting the big one sometime later this summer, as soon as next month. this is a long investigation that started four years ago this month. the story this morning got a look at the first information that was sent to them and it was very broad and asked questions about the online marketplace, how they deal with third-party sellers and the relationship they have with apple overselling apple products on the marketplace. over the past two years since lina khan took over the ftc,

they have really focused a lot on amazon. they have sued the company three times in the past month over consumer protection violations but this one is expected to be the really big one that takes aim at amazon's big money maker. ed: we are looking at shares of amazon down 0.9%, clearly a concern. when i read the story on bloomberg.com, i thought about lina khan the individual, what this means for her and her role at the ftc. what have you learned about how involved she is in this process? leah: she has been very involved since taking over two years ago. when she took over in june of 2021, she reorganized the entire way that the ftc has been looking at amazon, including giving the investigators some specific lines of questioning. she put a new person in charge of the case, a fellow academic by the name of john newman.

they bulked up the number of people involved in this case. the trump administration opened at but they focused their resources in the case that the ftc brought against meta. lina khan has moved to focus the agency more on amazon because she believes that the trump administration really did not give it the attention it deserved. ed: leah with that exclusive reporting. coming up, a global outlook with the ceo of xero. that is next. this is "bloomberg technology." ♪ happen to the people who teach us and rescue us, the people on our team and in our family. it can happen to the people who serve us and the people who served.

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ed: the world's dealmakers are

down $1 trillion in one of the worst years for takeovers and stock market listings in a decade. that is the year on year drop in the value of m&a and ipo's in the first half in which inflationary pressures, financing constraints, geopolitical tensions, mixed activity across the regions and sectors. excluding covid impact in 2020, it is the smallest first-half total in a decade and below the average for the period. let's stay global and bring in sukhinder cassidy, ceo of xero that is based in new zealand and bringing management solutions to customers globally. she has advised some of the largest pump needs in the road like google and amazon. good morning. welcome to "bloomberg technology." i go straight to thinking about what you have seen broadly and all of your customers and the platforms you offer. you must get a good lens into

the health of the tech sector. sukhinder: we do. we get a look into the health of the small business economy globally because there are over 3.7 million subscribers that are predominately small businesses. what we see is a mixed picture. on the one hand you have rising inflation, supply chain getting more expensive with that, high interest rates. but on the other hand, low unemployment rates, new business formation happening and talent shortages. what we hear from small businesses is this is a time of uncertainty and mixed signals but it is also a time where they need to manage their cash carefully. ed: i am interested in the company. global, customer based, global footprint, you are here with me in san francisco. what's that like? sukhinder: this is about the company getting attention globally. if you look at xero, the original disruptor started in cloud-based accounting and

started in new zealand. the u.k. is the second biggest market for us. north america is a big home for small businesses worldwide and important for xero. ed: we have to talk about the landscape. quickbooks is an example in the u.s., doing some battle with them? sukhinder: yes. around the world xero and quickbooks run into each other. ed: i am not suggesting this is an elon musk, mark zuckerberg situation. sukhinder: of course we see them in every market. the most important thing is that for all of us in this area, the real big winner is just moving people from offline to online. cloud adoption and small business accounting is further behind things like website building but it offers so much efficiency for small businesses. we are trying to bring those small businesses online. ed: what we learn from the collapse of the silicon valley bank, under duress small

businesses have to pivot. is the tough environment acting as a catalyst among your customers to change how they do business and use technology? sukhinder: of course. it is a tale of two cities. the majority of our customers are small businesses of every dimension who have never had the benefit of venture funding, they are paranoid about cash and cash management all the time. we can agree that silicon valley bank will be companies funded in tech are particularly nervous about their cash management right now. ed: you have done some trims. the sector is looking at reductions. how have you managed that? is that a response to ai or is it a macro issue? sukhinder: for us, it is simple. the company is high-growth but we want to be more disciplined and create more operating leverage for own business. we are focused on profitable growth but customer first. ed: sukhinder cassidy, giving us

the take on what it is like in technology. coming up, bear grylis looking at ai and the new survival skill. as we head to break, we are watching shares of netflix. the streaming service has performed well since announcing the ad-supported subscription plan and the crackdown on password sharing. 82 million new subscribers and $10.6 million of incremental revenue. based on estimates, the company increased their price target and opened a catalyst watch ahead of second quarter results. netflix up 0.4% in the session. sun valley is around the corner. there is a lot of conversation to be had around the competitive

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to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. ed: welcome back to "bloomberg technology." thinking about the markets and we are treading water, thinking about the nasdaq 100, up 0.03% in the session. the story is about the fed and traders betting that we will get two rate hikes by the end of the year. that sent yields higher. sometimes when yields push higher, you look at those stress names. we are essentially flat. some in the green. some are lower. i am checking apple. up 0.2%. it will give apple a market cap

of $3 trillion. we are on watch for that. we need more of again to see that. jd.com listed shares of the chinese company moving to the downside. the founder has registered to sell stock that may be having an impact. microsoft also interesting. the big news story. microsoft and openai are going to help investor services build a tool for moody customers. the stock is up 0.2%. it is an example that the ai headline hike is not moving the needle when it comes to markets. i want to highlight the content coming from bloomberg originals. on tonight's episode of "the circuit," emily chang meets with haley bieber who talks about founding her skin care company, celebrity beauty brands and social media backlash. haley: i felt like when i

announced the brand they were people who were like, here is another one. i get that. i understand. i'm coming from the point of view were i am like, trust me. i know. but this is my approach and it is different to other people. ed: to watch more of that interview, watch "the circuit" tonight at 10:00 p.m. on bloomberg television. we will stream it on bloomberg originals. let's get back to "bloomberg technology." one of the fears behind fully embracing artificial intelligence is the spread of misinformation and misinformation. it is part of what seekr and bear grylis and why they have committed to giving young people the tools necessary of making informed decisions about online content. joining us now is bear grylis, tv host and author. let's get right to it.

i know you advocate for the importance of survivor skills. why is computer literacy or even engagement with ai the next survival skill in your mind? bear: because young people need to be empowered with modern-day survival skills that will be relevant for their life and empowering for their life. in terms of survival, you will not get more of a wild west frontier than helping kids decipher, discern and be wise and be smart about whether -- about where they are sourcing information from. we have never had a time in history where it is so challenging for young people to be smart, to be empowered, to be digital survivors, to be digitally literate, to have an understanding of what is real and what is propaganda or misinformation. seekr speaks to that. i am proud to partner with them,

mission seekr. it is all about helping young people go on their own bluerun ventures whether it is a humanitarian thing or an environmental thing and build this community. through this process we are trying to help them learn skills that will be powerful and relevant for their life. seekr is clever. they score reliability of all the sourcing of information and try to use ai in a positive way to help young people. ed: what are the basics from a technology standpoint? if i'm a young explorer, how do i engage with mission seekr. what is it that i am doing on the computer or my smartphone? bear: seekr is a search engine that is family friendly. it is for young people and it will use its technology to score the reliability of information coming in, whether it is clickbait, transparency, all of

that. within that we have built missionseekr.com which is like an education adventure platform for young people to share their adventures. it is a motivating thing to get young people to be able to use the seekr technology in their life. we have some great young ambassadors leading the way for us who are out there shooting really fun humanitarian and environmental missions and every month we will set a new one and people all around the world have started to get involved with this and shooting their own adventures to build this community. like i said, let's try to do something good in this ai space where you hear a lot of negativity and that ai is going to be so dangerous. of course, new technology. everyone is always nervous around new technology. nobody likes change, do they? apart from a baby with a wet diaper. ed: interesting analogy. what was the catalyst?

we have been talking about artificial intelligence for a long time. we recognize that november and chatgpt becoming available to the public had a global effect. what was it for you that got you thinking that you need to be involved? bear: after the things that put some parameters, boundaries and positive things surrounding technology, it is always the second thing to come. the first thing is the technology and it goes at one million miles an hour. something like chatgpt comes along and everyone is in. there is a good part of that but there will always be a bad part. it is a tsunami of information not only coming at young people but also being generated and being put out. we are trying to put some tools around it. kids are smart themselves. they know it. they are smarter than we give

them credit for. but you have to resource them with the tools to be smart and that is what seekr is about and mission seekr is about trying to make it a fun adventure platform to bring kids into that space. ed: bear grylis, we are familiar with you and your programs and your books, going out into the wilderness and using as few tools as possible. paradoxically, which artificial intelligence tools do you engage with yourself? how do you use technology in your day-to-day life? bear: first, i am not a digital dinosaur. i am not like, oh -- you have to embrace technology. you have to embrace change. when you think of survivors of old, they are always using the latest stuff, whatever would help them. as a modern-day explorer, we need to do the same. as a modern-day survivor, we have to be part of that. you have to use technology.

i definitely used ai in various ways. as a parent, it is our response ability to provide young people and to provide our kids with resources that are really practical. resources that will help kids become digitally smart and literate. for me, i used seekr before we partnered with them. i thought, i really like this. this is actually a family friendly search engine that is doing a lot of the hard work for me in terms of scoring the reliability of information coming in. nothing is going to be perfect. that tsunami is coming fast but it is trying to do something that speaks to that problem which all of us know is an issue of young people and where they source their information. ed: bear grylis, i was in no way suggesting that you are not a technologist. when you move into your next initiative, come back onto the show and discuss it with us. thank you for your time. bear: take care.

all the best. ed: coming up, we will stick with ai and bring in crypto and we will be joined by morgan beller. this is "bloomberg technology." ♪

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ed: let's bring in morgan beller , general partner at nfx capital management investing in gaming, crypto, the list go on. the cofounder of libra which is facebook's attempt at a cryptocurrency. good to see you. morgan: thank you for having me. great to see you in person.

ed: let's talk about ai. nfx is acting on what is happening around us. how are you doing it from an investment standpoint? morgan: one thing i have been asking is what does it mean. people are like, are you investing in ai? yes, but what is nai company? every company needs to be an ai company. ed: people differentiate between ai native and ai-adjacent. for you, what is the focus? morgan: two answers. i was spending most of my time in crypto. when we looked at a crypto company we said, what is this company? is it a fintech company, a media company? we are viewing ai companies similarly which is what is this actually. it is a legal tech company, a

fintech company, a marketplace company for which they are using ai to do something that has not been done before? that is one lens. the second lens is this leapfrogging piece which i will shamelessly show that i wrote about recently which is the concept that ai will move into industries that were underserved. ed: give me a tangible example. morgan: the legal industry. ed: your office is in haze valley. we try to make the show global is what -- but what i keep hearing is that everything happening in ai is happening here. we had gary tan on the show two days ago and he called haze valley cerebral valley because in his mind all the talent working on alm's and models, you

can find them in several blocks of that neighborhood. do you agree? morgan: i very much agree with that statement. i did not know we were going to be talking about haze valley and san francisco but i am happy to. ed: for the audience, why are we talking about this tiny neighborhood in san francisco, which is a tiny city? morgan: yes, it is a tiny neighborhood in a tiny city. i joined the firm three years ago and the office was downtown, near where we are now. we are currently on the embarcadero which is a beautiful part of downtown. we were in a less beautiful part of downtown and i felt we needed to move into the heart of the city. i felt that for the first time people in san francisco were choosing to be here because they wanted to be here versus because they had to be here. ed: this was post-pandemic? morgan: this was january 2021. you saw the residential areas coming to life in ways that they

were not before. we spent time looking for commercial real estate in a residential neighborhood which is hard-to-find because infrastructural regions. we landed in haze valley which, san francisco is like a hand and haze valley is right in the center of the hand. we are right here the water. by luck i like to think that we will did into existence -- that we willed it into existence. it really does feel alive in a way that i have not seen. ed: a lot of people that watch "bloomberg technology" our founders and investors. they are just people who enjoy technology. if you go to any cafe in hayes valley, you can literally bump into a brilliant mind in the

field of ai. is it as granular as that? morgan: it is literally as granular as that. you bump into people that are working on interesting things. last week there is a green area in the center of the center of the neighborhood and i ran into someone who i knew who was speaking with this ai founder appeared also you will walk around and how they talked about in the 1990's, you can see garage doors open and people on their computers. you can see on the telephone polls, flyers for happy hours. ed: very quickly your background, the same entrepreneurship and energy? morgan: the energy is still there. there is this classification of person that people call fruit flies. people who fly around to the next thing. some of those fruit flies --hayes valley to the comment,

my partner talks about how what brought him here was the creative culture. anyone you would talk to on the street was building something and that was really exciting. then he talks about how it transitioned into the money culture and how everybody talked about their tesla and lamborghini. feels like for the first time he said in the past 30 years we are back at that creator culture feeling, specifically in hayes valley and that is nice. ed: morgan beller, good to catch up in person. coming up, runway securing additional funding from some big names in the world of tech. we will sit down with the ceo and bloomberg's rachel metz who leads the charge. that is next. this is bloomberg. ♪ rude. who are you? i'm an investor in a fund that helps advance innovative sports tech like this smart fitness mirror.

i'm also mr. leg day...1989! anyone can become an agent of innovation with invesco qqq, a fund that gives you access to nasdaq-100 innovations. i go through a lot of pants. before investing carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com. >> the court has affirmed and reaffirmed this view, that colleges could use race not as a determining factor for admission but is one of the factors among many in deciding who to admit from an already qualified pool of applicants. today the court walked away from decades of precedent and has made clear that dissent that

states, "rolls back decades of prejudice and momentous progress." i agree with that statement. the court has effectively ended affirmative action in college admissions and i strongly disagree with the decision. because affirmative action is so misunderstood, i want to be clear, make sure everyone is clear about what the law has been and what it has not been up until today. many people wrongly believe that affirmative action allows unqualified students to be admitted ahead of qualified students. this is not how college admissions worked. rather, colleges set standards for admission and every student has to meet those standards. then and only then, after first meeting the qualifications required by the school, will the college look at other factors in addition to grades such as race.

the way it works in practice is this, colleges establish a qualified pool of candidates based on meeting a certain grade, test scores and other criteria. then and only then, it is from this pool of applicants, all of whom have already met the school's standards after weighing a wide range of factors that the class is chosen by race. if you ever have any doubt about this, just look at the united states military. the finest fighting force in the history of the world has been a model of diversity and it has not only made our nation better, stronger, but safer. i believe the same is true for schools. i have always believed that the promise that america is big enough for everyone to succeed and that every generation of americans, we have benefited by

opening the doors of opportunity just a little bit wider to include those who have been left behind. i believe colleges are stronger when they are richly diverse. our nation is strong because we use -- because we are tapping into the full range of talent in this nation. i also believe that while talent, creativity and hard work are everywhere across this country, equal opportunity is not everywhere across this country. you cannot let this decision be the last word. we cannot let this decision be the last word. while the court can render a decision, it cannot change what america stands for. america is an idea, unique in the world. an idea of hope and opportunity, possibilities, of giving everyone a fair shot, of leaving no one behind. we have never fully lived up to it but we have never walked away from it either. we will not walk away from it now. we should never allow the country to walk away from the dream upon which it was founded.

that opportunity is for everyone, not just a few. we need a new path forward, a path consistent with the law that protects diversity and expands opportunity. today i want to offer some guidance to our nation casher colleges as they review their admission systems after today's decision. they should not abandon their commitment to ensure e student bodies of diverse backgrounds and experience that reflect all american -- that reflect all of america. what i propose is a new standard where colleges take into account the adversity that a student has overcome when selecting among qualified applicants. under this new standard just as the earlier standard, students first have to be qualified applicants. they need the gpa and test scores to meet this school's standards. once that is met, then diversity should be considered

including a student's lack of financial means because we know too few students of low income families who get an opportunity to go to college. when a poor kid, maybe the first in the family to go to college is the same grades and test scores as a wealthy kid, whose whole family has gone to the most elite colleges in the country the mother kid who faced tougher challenges has them is rated more determination and that should be a factor -- has demonstrated more determination and that should be a factor. it means examining where a student grew up and went to high school. it means understanding the particular hardships that each individual student has faced in life including racial discrimination that individuals have faced in their own lives. the court says, "nothing in this opinion should be construed as prohibiting universities from considering an applicant's

discussion on how race has affected his or her life, be it for discrimination or inspiration." the truth is discrimination still exists in america. discrimination still exists in america. discrimination still exists in america. today's decision does not change that. it is a simple fact. if a student has had to overcome adversity on their path to education, the college should recognize and value that. our nation's colleges and universities should be interested in expanding opportunity through upward mobility. today, too often that is not the case. one statistic, students from the top 1% of family incomes in america are 77 times more likely to get into an elite college than run from the bottom 20% of family incomes.

77 percent greater opportunity. today for too many schools the only people who benefit from the system are the wealthy and the well-connected. the odds have been stacked against working people for much too long. we need a higher education system that works for everyone, from appalachia to atlanta and far beyond. we can and must do better and we will. today, i am directing the department of education to analyze the practices help build more inclusive and diverse student bodies and what practices hold that back like legacy admissions and other systems that expand privilege instead of opportunity. colleges and universities should continue their commitment to support, retain and graduate the first students and classes and companies. companies who are already realizing the value of diversity should not use this decision as

an excuse to turn away from diversity either. we cannot go backwards. i know today's court decision is a severe disappointment to some many people including me. but we cannot let this decision be a permit setback for the country. we need to keep an open door of opportunities. we need to remember that diversity is our strength. we have to find a way forward. we need to remember the promise of america is big enough for everyone to succeed. that is the work of my administration and i will always fight for that. i want to thank you all and i know you have been told i have a helicopter waiting to go to new york. i will talk more about this interview. but thank you very much and we will have plenty of time to talk about this but we will not let this break us. romaine: a landmark supreme court decision earlier today in the united states of america. the president not in agreement, pushing back on the supreme court decision to end

affirmative action programs at universities here in the united states. the president saying that he will task the proppant of education to come up with other ways to facilitate diversity in the nation's universities without explicitly using race. how he arrived at that maze to be seen. romaine bostick alongside scarlet fu. let's go down to washington where annmarie hordern is standing by with more information not just about what we heard from the supreme court but about what options the president thinks he has. annmarie: the president is firmly saying he is against this but today he says he is directing the department of education and he says he wants them to analyze what practices help build a more inclusive and diverse student body. what practices hold that back. practices like legacy admissions and other systems that expand privilege instead of opportunity. also interesting, on the way out there a reporter was asking do you think the court has gone

rogue. he said, "this is not a normal court." you can see the president taking on the supreme court in this decision. this sets up two decisions we are expecting tomorrow. one key one for the president and that will be the student loans. they also said he will talk more about this. the president will be giving a live interview at 4:00 p.m. on msnbc where he will likely get a lot of those questions on what he thinks right now of the court. he came out flatly today saying that he does not agree with the court. he says they have effectively ended affirmative action in college admissions and "we cannot let this decision be the last word." that sets him up for this to be a major point for 2024. scarlet: absolutely. he brought up the military and military academies. does this ruling apply to west point or the naval academy? annmarie: the military

universities were left out of this ruling. that was a literal asterisk in this opinion. the president was trying to make that point. we have this grand military and they will be keeping these measures. why would we not keep them for other private universities, public inverse cities in the united states? yes, this decision his about the university of north carolina and harvard college but every university in the country will be looking at this decision and how they potentially themselves need to start to revamp or tweak their college admission programs to make sure they are in line with this supreme court decision. with the supreme court decision. >> a focus on a landmark supreme court decision, not unexpected, but it does raise a lot of questions about some of the diversity and inclusion initiatives potentially in corporate america as well. let's bring in laura davidson who is in our washington bureau to talk a little more about