Live on Bloomberg TV

00:00> > FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE, IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY, WITH EMILY CHANG. EMILY: I'M EMILY CHANG IN SAN FRANCISCO IN THIS IS BLOOMBERG TECHNOLOGY. BITCOIN SLIDING MORE THAN 6%, BELOW $19,000 FOR THE SECOND TIME IN TWO WEEKS. WHAT IT MEANS, AND HOW LOW CAN IT GO? PLUS, WASHINGTON IS FINALLY TAKING NOTE OF SEXISM THAT HAS RUN RAMPANT IN THE TECH INDUSTRY WHERE WOMEN HAVE LONG BEEN UNDERREPRESENTED. STEPHEN LYNCH ON THE HEELS OF A HEARING HE CHAIRED ON COMBATING THE CULTURE. WHAT HE THINKS CONGRESS CAN DO TO HELP FIX THE PROBLEM. AND AIRLINES ARE CANCELING FLIGHTS UP AND DOWN THE BOARD AS THEY STRUGGLED TO KEEP UP WITH DEMAND. THE FUTURE OF TRAVEL IN A POST-PANDEMIC WORLD. REST -- RECESSION FEARS ARE BACK, SENDING STOCKS DOWN ACROSS THE BOARD. ED LUDLOW HAS ALL THE LATEST. ED: YOU CAN SEE THAT SPENDING FELL FOR THE FIRST TIME IN THE YEAR, REINFORCING RECESSION FEARS OUT IN THE MARKET. BIG DROPS ACROSS THE MAJOR INDICES. I KEEP GOING BACK TO U.S. 10-YEAR GILTS, DOWN ANOTHER SEVEN OR EIGHT BASIS POINTS. WHEN YIELDS ARE RISING WE SAW A PAIN IN TECH STOCKS. WHEN YIELDS ARE COMING DOWN, LOOK AT THE RED ON THE SCREEN. IT'S JUNE 30, WE MADE IT HALFWAY THROUGH THE YEAR. LOOK AT WHERE WE ARE, SIX MONTHS INTO 2022. FRANKLY, IT HAS NOT BEEN GREAT OUT THERE. YOU LOOK AT THE DECLINES ON THE S & P 500, THE WORST FIRST HALF OF THE YEAR SINCE 1970. THE NASDAQ 100 WORSE, PHILADELPHIA SEMICONDUCTOR INDEX, WORST FIRST HALF OF THE YEAR ON RECORD. I CAN GO ON AND ON. WHAT IS INTERESTING IS HOW BULLISH ANALYSTS ARE, LOTS OF BY RATINGS. -- BUY RATINGS. WHEN WE SPEAK TO INVESTORS AND HEAR FROM ENDLESS, THERE IS BULLISHNESS. ARE THEY JUST BEHIND THE CURVE? FINALLY, AN INTERESTING BAROMETER OF WHAT IS GOING ON IN THE WORLD IS ONE OF THE CHIPMAKERS, MACRON, REPORTING EARNINGS AFTER THE BELL. WELL BELOW ANALYST ESTIMATES FOR REVENUE. THE STREET WAS LOOKING FOR 9.2 BILLION DOLLARS. BASICALLY CONSUMERS ARE COMING BACK, SPENDING ON SMARTPHONES AND LAPTOPS. EMILY: I WANT TO STICK WITH THE CURRENT MARKET MOVES. ROBERT CANTWELL WILL TALK ABOUT THE PAIN INVESTORS ARE FEELING. A DISMAL STATISTIC, ROBERT. TALKED ABOUT A MONTH AGO. HAVE YOUR FEELINGS CHANGED, GIVEN THAT WE CONTINUE TO SEE RED ON THE SCREEN? ROBERT: IT HAS GONE UP AND DOWN. WE ARE BASICALLY EXACTLY WHERE WE WERE ABOUT A MONTH AGO. AS YOU MENTION, THE WORST QUARTER UP -- FOR THE S & P SINCE THE FIRST QUARTER OF 2020. IT'S BEEN PARTICULARLY PAINFUL FOR INVESTORS. WE WERE TALKING ABOUT THE REVALUATION OF TECH COMPANIES AND ARE SOME OF THESE STILL GOING TO BE CONSIDERED TECH COMPANIES LIKE NETFLIX OR FACEBOOK? META BEING RELEGATED INTO THE VALUE BUCKET IS PROBABLY ONE OF THE CROWNING SIGNALS OF THAT. THAT IS PERFECTLY FINE, BUT THEN WHERE IS THE GROWTH GOING TO COME FROM IN TECHNOLOGY? WE SEE IT COMING FROM THE ENTERPRISE CLOUD. THE DATA WE ARE SEEING TODAY TELLS US WHAT THE DIGITAL ADVERTISING INDUSTRY WAS BECKONED 20 IS SIMILAR TO WHERE THE CLOUD ENTERPRISE SOFTWARE IS TODAY. EMILY: DO YOU PUT META IN THE VALUE BUCKET? IS THE GROWTH ERA FOR THAT COMPANY OVER? ROBERT: THERE'S VERY FEW VALUE STOCKS WITH THAT TYPE OF MARGINS AND GROWTH RATES GOING FORWARD. META IS FAR FROM A DEAD COMPANY AS FAR AS WE ARE CONCERNED. THE INABILITY OF THE BUSINESS TO MAKE ACQUISITIONS OVER THE PAST TWO YEARS HAS REALLY HURT IT, AND THAT'S GOING TO BE ONE OF THE BIGGEST QUESTIONS GOING FORWARD, THE REGULATORY ENVIRONMENT FOR META HAS QUIETLY IMPROVED, AND IF THAT IS A SIGN OF THINGS TO COME, WE THINK THAT WILL CONTINUE TO HELP THE STOCK IN ADDITION TO THE FACT THAT IS JUST SO DARN CHEAP. EMILY: INTERESTING, DON'T WE WANT GROWTH TO COME FROM INNOVATION AND NOT ACQUISITION? ROBERT: WELL, YOU KNOW, YOU CAN'T FIGHT CAPITALISM. META WILL DEVELOP PLENTY OF PRODUCTS AND SOME WILL WORK AND SOME DON'T. THEY'RE FINDING NEW WAYS OF ON BOARDING ADVERTISERS FOR THEM. AS LONG-TERM INVESTORS, OF COURSE YOU WANT THE PRODUCTS TO BE BUILT, BUT THERE'S TOO MANY. WE TALKED ABOUT PINTEREST BEING SUCH AN ATTRACTIVE TAKEDOWN CANDIDATE. TO RE-CREATE TWITTER, PINTEREST, OR WHAT YOU SAW WITH THE LINKEDIN ACQUISITION OF MICROSOFT, THERE'S TOO MANY ATTRACTIVE ASSETS IN THE ORCHID TO JUSTIFY HAVING TO BUILD THINGS FROM SCRATCH WHEN YOU CAN JUST PULL SOMETHING TOGETHER AND MAKE A STRONGER COMPANY. EMILY: HOW ARE YOU PARSING OUT THE ENTERPRISE SOFTWARE CATEGORY? IT'S EASY TO UNDERSTAND WHAT META IS, INSTAGRAM, WHATSAPP AND HOW ALL THOSE THINGS FIT TOGETHER. WHEN IT COMES TO ENTERPRISE SOFTWARE, IT'S A LOT MORE CONFUSING. HOW DO YOU DISTINGUISH BETWEEN WHAT IS A GOOD PLAY AND WHAT IS NOT? ROBERT: IT IS A LOT MORE WORK, BECAUSE YOU DON'T GET TO JUST USE THE PRODUCT YOURSELVES. ONE OF THE BIGGEST TRENDS IN ENTERPRISE TECHNOLOGY HAS BEEN THIS MOVE FROM SYSTEMS OF RECORD, ORACLE, SALESFORCE, BASICALLY COMPLEX DATABASES, INTO SYSTEMS OF ACTION. DATA HAPPENS IN THE COMPANY, THAT DATA RUNS THROUGH SOME SYSTEM AND THEN THAT SYSTEM TELLS AN EMPLOYEE OR ANOTHER PIECE OF SOFTWARE WHAT TO DO. THE SYSTEMS OF ACTION ARE INCREDIBLY POWERFUL. WE ARE STILL RELATIVELY EARLY IN THE CURVE. YOU HAD A GREAT INTERVIEW LAST WEEK, ONE OF THE THINGS I CAN'T HELP BUT THINK ABOUT IS THAT A LOT OF PEOPLE ALREADY WORK FOR SOFTWARE. SOFTWARE IS TELLING US WHAT TO DO AND IT HAS BEEN THIS EVOLUTION OF THESE SYSTEMS OF ACTION THAT ARE DRIVING IT. IT'S ONE OF THE THINGS THAT IS INEVITABLE AND IT WILL CERTAINLY GO TOO FAR AS WE'VE SEEN WITH SOME OF THE DATA CAPTURE ON ADDITIONAL ADVERTISERS. BUT WE ARE RELATIVELY EARLY IN THE ADOPTION OF THESE SYSTEMS AND HAS BEEN A PRETTY EXCITING PLACE TO INVEST. EMILY: IS THE SECOND HALF OF THE YEAR GOING TO BE BETTER THAN THE FIRST? ROBERT: GROWTH RATES ARE GOING TO NATURALLY RISE, NO MATTER WHAT. E-COMMERCE GROWTH RATES ARE GENERALLY GOING TO RECOVER. I CERTAINLY MAKE NO PREDICTION ABOUT SHARE PRICES, BUT PRICE IS RIGHT NOW ARE REALLY GOOD. MARK MAHANEY IS OBVIOUSLY WAITING FOR INFLATION TO GET BETTER AND WAITING FOR ESTIMATES TO KEEP COMING DOWN. IF YOU LOOK BEYOND THE NEXT 12 MONTHS, ESTIMATES ARE REALLY CONSERVATIVE THREE OR FOUR YEARS OUT. HEDGE FUND INVESTORS ARE SHIFTING FUNDS NOW FROM PRIVATE INTO PUBLIC. SEQUOIA SAYING WE WANT TO HAVE PUBLIC FUNDS ATTACHED TO WHAT WE ARE DOING. THERE'S A LOT OF SIGNALS FOR REALLY EXPERIENCE INVESTORS THAT THE PUBLIC MARKET IS OFFERING SOME OF THE MOST INTERESTING OPPORTUNITIES RIGHT NOW. EMILY: ROBERT CANTWELL, ALWAYS TO HAVE YOU WITH US. THANK YOU FOR STOPPING BY. THE TIKTOK RIVAL STILL GOING PUBLIC, BUT ON ITS OWN. AN INITIAL PUBLIC OFFERING AFTER ENDING ITS $5 BILLION MERGER WITH SEACHANGE INTERNATIONAL. THE MERGER TERMINATION IS EFFECTIVE IMMEDIATELY WITH THE NASDAQ LISTING EXPECTED IN SEPTEMBER. COMING UP, THE SEC REJECTING BITCOIN ETF. MORE ON HOW THE INVESTMENT FIRM IS RETALIATING AND HOW THE CRYPTO MARKET KNELT DOWN IS TAKING ONE BIG TECH COMPANY DOWN ALONG WITH IT. THIS IS BLOOMBERG. > > WE BEEN GUIDED TO BELIEVE THAT IT COULD BE CALLED AT 9-12 MONTHS, HE COULD BE A LITTLE LONGER, COULD BE A LITTLE BIT SHORTER. BUT WE HOLD STRONG IN HER COMMENTS AND AUGMENT AROUND THE ETF CONVERSION AND HAVE A FANTASTIC LEGAL BENCH THAT WILL BE ARGUING THE CASE ON BEHALF OF INVESTORS. EMILY: THE GRAYSCALE CEO THERE, SAYING THEY HAVE SUED THE SEC WHEN IT REJECTED A BID TO CONVERT ITS BITCOIN TRUST INTO AN ETF. NOT NECESSARILY UNEXPECTED, BUT WHAT IS NEXT? > > WHAT IS INTERESTING IS THAT THIS IS NOT ONLY A BIG DEAL FOR GRAYSCALE, WHERE THERE WAS HUGE DEMAND FOR CLIENT AND CUSTOMERS TO HAVE THIS CONVERTED INTO AN ETF, BUT A LOT OF FRUSTRATION WITH IT NOT BEING APPROVED AT LARGE. THERE ARE MANY OF THEM THAT ARE WAITING FOR APPROVAL, PLANNING ON FILING AGAIN. I THINK BACK TO A CONVERSATION I HAD WITH ANTHONY SCARAMUCCI THAT TALKED A LOT ABOUT HOW APPROVAL OF AN ETF LIKE THIS COULD REALLY START TO HAVE A HUGE INFLOW OF MORE INSTITUTIONAL MONEY FOR EXAMPLE INTO BITCOIN. THIS IS A HUGE ROADBLOCK, NOT JUST FOR THE CRYPTO COMMUNITY BUT FOR GRAYSCALE ITSELF, THAT NOW HAS A TRUST TRADING WELL BELOW ITS NET ASSET VALUE, 30% OR MORE BELOW. IT HAD A BIG DROP OFF TODAY AS WELL. THIS WILL BE A LONG ROAD AHEAD, ANOTHER 12 MONTHS OR SO TO WORK THROUGH A LAWSUIT. EMILY: ALSO SOME NOT GOOD NEWS FOR COIN/, WE INTERVIEWED THE CEO EXCLUSIVELY OF YOUR -- EXCLUSIVELY EARLIER THIS WEEK. HE WAS VERY CONFIDENT THAT HE WOULD BE ABLE TO GET THAT DONE. TAKE A LISTEN TO WHAT HE HAD TO TELL US BACK ON MONDAY. > > I'M HIGHLY CONFIDENT, WE HAVE SPOKEN TO PEOPLE NONSTOP SINCE THIS ISSUE AROSE, AND WE HAVE MORE THAN HALF OF THE AMOUNT NEEDED IN SOFT COMMITMENTS TO GET THIS DONE. EMILY: TODAY COINFLEX CAME OUT AND SAID THEY ARE NOT GOING TO BE ABLE TO MAKE THE DEADLINE. WHAT HAPPENED? > > FOR AN ENTIRE INDUSTRY THAT SUFFERING THROUGH LIQUIDITY ISSUES, WHEN IT COMES TO COIN FLEX ITSELF, SINCE THAT INTERVIEW WE DID ON MONDAY, WE HAVE ROGER COMING OUT SAYING HE HAS NO DEBT TO COINFLEX, BEING REPORTED AS THE BIG CUSTOMER WE BEEN TALKING ABOUT WITH A MARGIN CALL, SO THE DISPUTE BETWEEN ROGER AND COINFLEX ITSELF MADE THIS TOKEN OFFERING WHICH IS SUPPOSED -- SUPPOSED TO MAKE THAT MARGIN CALL ISSUE WHOLE AGAIN DIFFICULT IN TERMS OF BOTH RAISING MONEY AND MAKING OTHER CUSTOMERS HOLD AND STARTING WITHDRAWALS AGAIN. LET'S TALK ABOUT ANOTHER COMPANY, CELSIUS, WHICH ALSO HAD WITHDRAWALS A COUPLE WEEKS AGO. ALSO SAYING THEY ARE DISCUSSING DIFFERENT TRANSACTIONS AS WELL AS RESTRUCTURING THEIR LIABILITIES, BUT NOT A LOT OF DETAILS ON WHAT THAT WOULD NECESSARILY LOOK LIKE. NEARING A DEAL TO ACQUIRE IT TO GET OUT OF THE SLUMP. EMILY: ALL STORIES WE WILL CONTINUE TO FOLLOW. MORE NOW ON THE IMPACT OF THE CRYPTO PLUNGE ON THE WORLD OF CHIPS AND ESPECIALLY WHEN CHIPMAKER IN PARTICULAR, THAT'S IN -- THAT IS NVIDIA. WE SEEM BITCOIN FALL BELOW $19,000 A COUPLE OF TIMES. THIS IS NOT GOOD JUST FOR CRYPTO NVIDIA -- CRYPTO INVESTORS BUT ALSO NVIDIA WHICH MADE A BIG BET ON THIS TECHNOLOGY. > > THE CRYPTO BOOM GENERATED A LOT OF INTEREST IN THE NVIDIA GAME CARDS WHICH TYPICALLY GAMERS USED TO PLAY HIGH-RESOLUTION VIDEO GAMES ON THEIR COMPUTERS. CRYPTO MINORS DO CREATE CRYPTOCURRENCIES, PARTICULARLY ETHEREUM, THROUGH USE OF THE GAME CARDS THEMSELVES. SO THERE WAS A HUGE RUSH ON THE CARDS IN 2020 ALONG WITH THE BOOM IN CRYPTO. NOW IT HAS EXPERIENCED SOME OF THAT HANGOVER. EMILY: SO WHAT IS NEXT FOR NVIDIA? > > NVIDIA HAS DANCED BACK AND FORTH BETWEEN DISTANCING ITSELF FROM CRYPTO. GAMERS ARE ITS PRIMARY MARKET. THE INDUSTRY IS EXTREMELY VOLATILE. IT HAS DETACHED ITSELF FROM THAT INDUSTRY AND MARKETING PRIMARILY TO GAMERS. EMILY: A STORY WE WILL CONTINUE TO FOLLOW. COMING UP, WE WILL TAKE A PEEK AT THE SUMMER SEASON WITH FOURTH OF JULY TRAVEL ABOUT TO GET UNDERWAY. WILL THE FLIGHT CANCELLATION NIGHTMARE CONTINUE? WE WILL HELP -- HAVE THAT AND MORE, NEXT. THIS IS BLOOMBERG. ♪ EMILY: AIRBNB SHARES DELTA RECORD LOW AMID HEAVY TRAVEL DISRUPTIONS IN EUROPE AS MAJOR AIRPORTS AS CARRIERS TO CUT CAPACITY. U.S. CONSUMER SPENDING FELL IN MAY FOR THE FIRST TIME THIS YEAR. AIRBNB IS DOWN MORE THAN 46% SO FAR THIS YEAR DESPITE ECONOMIES REOPENING AND LEISURE TRAVEL RETURNING AROUND THE WORLD. MEANTIME THE HOLIDAY TRAVEL NIGHTMARE IS BACK WITH A VENGEANCE. FLIGHTS ACROSS THE BORDER BEING CANCELED IN EUROPE, CANADA, TO THE UNITED STATES DUE TO THE STRAIN ON GLOBAL AIRLINES AND AIRLINES ARE HAVING A TOUGH TIME SCALING BACK UP TO MEET THE DEMAND POST-PANDEMIC. OUR GUEST IS THE CEO AND COFOUNDER OF A MARKETPLACE FIRM. WHAT IS YOUR TAKE ON THIS GLOBAL TRAVEL DEBACLE, AND HOW LONG THIS GOES ON FOR? RUZWANA: UNFORTUNATELY, WE'VE ALL SEEN IT. THOUGHTS ARE GETTING CANCELED AT A RATE OF ABOUT 1.3%. RIGHT NOW THEY HAVE DOUBLED YEAR-OVER-YEAR SINCE LAST YEAR. VERY RECENTLY WE'VE SEEN THAT GO TO ABOUT 5%, FLIGHTS BEING CANCELED IN THE LAST COUPLE OF WEEKS. AND A HUGE AMOUNT OF DELAYS. THERE ARE BIG LABOR SHORTAGES GOING ON, THERE ARE MAJOR DELAYS ESPECIALLY IN HUBS LIKE CHICAGO, NEW YORK, DALLAS, MIAMI, AND LOS ANGELES. AT LEAST 50 MILLION AMERICANS ARE PLANNING FOURTH OF JULY TRAVEL. PEOPLE DO NOT WANT TO PUT THAT OFF, DESPITE SOME OF THE CHALLENGES IN THE ECONOMY. WE WILL SEE RECORD LEVELS OF PEOPLE GOING OUT AND TRAVELING AGAIN, BUT THE DISRUPTIONS ARE HERE AND PRETTY SERIOUS. BEAR THAT IN MIND IF YOU'RE PLANNING TO TRAVEL RIGHT NOW. EMILY: WHAT ARE YOU EXPECTING TO HAPPEN OVER THIS HOLIDAY WEEK? ANY TRENDS YOU'RE SPOTTING IN PARTICULAR? RUZWANA: WE'RE SEEING THE AMOUNT OF INTERNATIONAL TRAVEL IS MUCH HIGHER THAN IT HAS BEEN IN THE COVID ERA. THE KIND OF THINGS WE'VE SEEN PEOPLE SEEING WITH THE FOURTH OF JULY EXPERIENCE, SHARK DIVING IN MIAMI, KAYAKING ON RIVERS, JET SKIING AROUND THE STATUE OF LIBERTY, A LOT OF PEOPLE GETTING OUTDOORS ON THE WATER AND MAKING THE MOST OF THE SUMMER WEATHER. WITH 50 MILLION AMERICANS TRAVELING, WERE GOING TO SEE VERY BUSY ATTRACTIONS AS WELL AS AIRPORTS. WE WILL SEE VERY CONGESTED HIGHWAYS AS WELL. EMILY: SHARK DIVING IN MIAMI, THAT SOUNDS FUN. YOU JUST WON THE ENTREPRENEUR OF THE YEAR AWARD, CONGRATULATIONS ON THAT. AND LAUNCHING A PARTNERSHIP WITH JETBLUE, WHAT ARE YOUR PRIORITIES FOR THE YEAR AGAINST THE CONTEXT OR BACKDROP OF WHAT IS HAPPENING IN THE MACROECONOMY? RUZWANA: WE ARE BASICALLY SHOP A FINE OR EXPERIENCES. PROVIDING SOFTWARE FOR SMALL AND LARGE BUSINESSES TO GET ONLINE. THE LAST COUPLE OF YEARS THE BUSINESSES WE WORK WITH WERE HIT HARD. WE DEFINITELY SAW OVER THE LAST COUPLE OF YEARS THERE ARE WINNERS AND LOSERS. IT IS BECOME OUT OF THE COVID PANDEMIC, WE ARE SEEING CONSUMERS WANT TO TRAVEL AND HAVE YOU EXPERIENCES. DESPITE SOME OF THE THINGS WE'VE SEEN WITH INFLATION, THE DONE NIGHT -- DYNAMICS WE'RE SEEING PLAY OUT, PEOPLE ARE STILL WANTING TO DO THAT. WE'RE NOT SEEING THAT GO AWAY. THERE WAS AN $80 MILLION ROUND AND GOLDMAN SACHS JOINING OUR BOARD. WE'RE SEEING A LOT OF MOMENTUM IN OUR SPACE AND A LOT OF OPPORTUNITY. AS WE GO INTO THE NEXT PHASE OVER THE NEXT YEAR, WE ARE DEFINITELY HELPING EMPOWER OUR CREATIVE PARTNERS THAT WE WORK WITH TO BE ABLE TO GET THROUGH WHAT WILL I THINK BE MORE CHALLENGING MACROECONOMIC CONDITIONS. EMILY: THE FORMER CFO OF AIRBNB JOINED YOUR BOARD. HOW DO YOU DISTINGUISH PEAKS IN BUSINESS WITH WHAT WERE SEEING WITH COMPANIES LIKE AIRBNB WHICH CAN BE SOME SORT OF RAMEN OR CONSUMER SENTIMENT? HOW ARE YOU AS AN ENTREPRENEUR, WHAT ADVICE ARE YOU GETTING FROM INVESTORS ABOUT HOW TO WHETHER A POTENTIALLY SIGNIFICANT DOWNTURN? RUZWANA: ONE OF THE THINGS THAT IS VERY INTERESTING ABOUT OUR BUSINESS, FIRST WE WERE PROFITABLE, SO WE ARE A RARE TECH BUSINESS THAT TAKE ECONOMICS AND PROFITABILITY VERY SERIOUSLY. WE ARE IN A POSITION AROUND CONTINUING TO INVEST AND HELPING OUR BUSINESSES GET THROUGH THIS. RATHER LIKE SHOP A FINE, WE ARE WORKING WITH THOUSANDS OF BUSINESSES AND HELPING THEM TAKE THEIR BUSINESS ONLINE. IN DOING SO, THE AVERAGE BUSINESS THAT PARTNERS WITH US SEES THEIR REVENUES INCREASED BY ABOUT 30%. SAVING THEM TONS OF TIME, HOURS OF AUTOMATION THAT WE PROVIDE. WE ARE HEARING FROM LARGE BUSINESSES AND SMALL BUSINESSES SAYING WE KNOW THAT THE BOTTOM LINE REALLY MATTERS NOW AND IT MATTERS THAT WE FIND WAYS TO CUT COSTS AND GROW OUR TOP LINE. WE THINK PEOPLE STILL NEED THESE MOMENTS OF CONNECTION AND JOY AND WE SPECIALIZE IN EVERYDAY ADVENTURE. IT'S AN ENVIRONMENT WHERE WE WILL SEE BUSINESSES NEEDING AUTOMATION AND KEYBOARD TECHNOLOGY. CONSUMERS MAY NOT BE ABLE TO DO AS MANY OF THESE BIG TRIPS, THIS SUMMER BEING A PLACE WHERE A LOT OF PEOPLE WERE ABLE TO DO THAT, AND MOVING TO LOCAL EXPERIENCES, BEING ABLE TO DO FUN THINGS CLOSE TO HOME. EMILY: MUSEUMS, ICE CREAM, SOUNDS GREAT TO ME. GOOD TO HAVE YOU BACK WITH US. THANK YOU FOR STOPPING BY. COMING UP, IS SOMETHING I'VE SPENT YEARS REPORTING ON, AND THAT'S GROWTH CULTURE IN THE TECH WORLD. FINALLY WASHINGTON IS STARTING TO PAY ATTENTION. CONGRESSMAN STEPHEN LYNCH WHO > > THE REAL REASON THAT FINTECH CEOS IS BECAUSE WOMEN CONTROL A SMALL PERCENTAGE OF THE VENTURE CAPITAL DOLLARS SPENT JUST LAST YEAR. 86% OF INVESTMENT DECISION-MAKERS ARE MEN. GIVEN THE VENTURE CAPITAL IS VERY MUCH A PATTERN MATCHING BUSINESS, INVESTORS OFTEN BACK COMPANIES AND PEOPLE MOST LIKE THEMSELVES. EMILY: WELCOME BACK. THAT WAS JUST A TASTE OF A HEARING HELD EARLIER BY THE HOUSE FINANCIAL SERVICES COMMITTEE CALLED COMBATING TECH BROKE CULTURE. I TO TALK MORE ABOUT THE ISSUE WITH THE PERSON WHO LED THAT HEARING TODAY CONGRESSMAN STEPHEN LYNCH. I AM CURIOUS WHAT LED YOU TO TAKE ON THIS ISSUE. WHAT DO YOU THINK WASHINGTON CAN DO ABOUT DECADES OF SEXISM IN THE TECH INDUSTRY? > > THANK YOU, I KNOW YOU HAVE DONE A LOT OF WORK IN THIS AREA AND I HAVE HEARD YOU ON PREVIOUS SHOWS COMMENTING ON THIS. THE NUMBERS ARE STUNNING. THE BILLIONS OF DOLLARS GOING OUT THE DOOR EVERY YEAR FOR VENTURE CAPITAL FIRMS TO FINTECH STARTUPS, LESS THAN 2% GO TO WOMEN. 1% GOES TO BLACK ENTREPRENEURS. LESS THAN 2% TO LATINX FOUNDERS. WE HAD THIS PROBLEM YEARS AGO AND THE BANKING INDUSTRY. THEY USED TO HAVE REDLINING AND THIS IS SORT OF REDLINING WHAT THEY'RE DOING HERE. BACK IN THE DAY, THE BANKS WOULD NOT INVEST IN THE REDLINED AREAS. WE PASSED THE COMMUNITY REINVESTMENT ACT AND ONE OF THE THINGS WE DID WAS WE CREATED A SCORECARD, REPORT CARD THAT ALLOWED THE POSITIVES AND INVESTORS TO REALIZE HOW THAT INSTITUTION WAS DOING IN TERMS OF THEIR INVESTMENT IN MINORITY AREAS BECAUSE THAT IS SOMETHING THAT WE THOUGHT WAS THE RIGHT THING TO DO. I THINK WHAT WE NEED TO DO IS THE SAME THING WITH VENTURE CAPITAL. NEED TO GIVE THEM A SCORECARD. THE SEC NEEDS TO TRACK HOW WELL INCLUSIONARY MEASURES ARE ADOPTED BY THESE VC FIRMS SO THAT WOMEN AND MINORITY FOUNDERS CAN PARTICIPATE. > > SALLIE KRAWCHECK, FOUNDER OF A COMPANY ALSO TESTIFIED AT THE HEARING TODAY. WE PULLED A PORTION OF HER TESTIMONY. > > THE REAL ISSUE IS THE FEW FINTECH'S CENTER ON WOMEN'S NEEDS. YOUR CONSTITUENTS INVEST LESS OF THEIR MONEY THAN MEN DO. COSTING THEM HUNDREDS OF THOUSANDS FOR SOME WOMEN MILLIONS OF DOLLARS OVER THE COURSE OF THEIR LIVES. IT IS ONE REASON WHY THE GENDER WEALTH GAP IS AT $.32 TO WHITE MAN'S DOLLAR AND ONE PENNY FOR WOMEN AND IT HAS BEEN WIDENING. EMILY: HERE IS A STORY OF SOME OF THIS -- SOME OF THESE FOUNDERS, WHAT WAS MOST ALARMING TO YOU? > > WE HAD SEVERAL SUCCESSFUL STARTUP ENTREPRENEURS THAT CAME BEFORE THE COMMITTEE. HEARING HOW HARD THEY HAD TO WORK GOING TO 30 DIFFERENT ENTITIES AND BASICALLY BEGGING FOR INVESTMENT IN THEIR PRODUCTS , YOU COULD SEE HOW HARD THEY HAD TO FIGHT TO BREAK THROUGH. THAT NOT ONLY DENIED THEM THE OPPORTUNITY, BUT THEY HAD GREAT IDEAS. THEY HAD GREAT SUBSTANTIVE IDEAS THAT WERE A GREAT BENEFIT TO SOCIETY IN GENERAL. WE HAVE TO FIND A WAY TO BREAK THROUGH OR MAKE THESE VC COMPANIES WERE AWARE OF WHAT'S OUT THERE. OFTENTIMES, THEY ARE SUPPORTING HUNDREDS OF DIFFERENT VENTURES HOPING THAT ONE OF THEM MIGHT BE SUCCESSFUL. YET IN THAT PROCESS, THEY ARE TOTALLY IGNORING MANY OF THE VIABLE SUBSTANTIVE PROPOSALS MADE BY WOMEN AND MINORITY FOUNDERS. EMILY: SILICON VALLEY HAS MADE SOME PROGRESS IN ITS OWN VERSION OF THE #METOO MOVEMENT. FIVE YEARS AGO, I WROTE ABOUT THIS IN MY BOOK. OBVIOUSLY, I THINK MOST PEOPLE WOULD AGREE NOT ENOUGH PROGRESS HAS BEEN MADE. MAXINE WATERS MADE A SURPRISE APPEARANCE TODAY. WOULD YOU SAY THAT THERE IS BROAD CONSENSUS ACROSS CONGRESS THAT MORE DIVERSITY IN THE FINANCIAL TECHNOLOGY SECTOR IS CRITICAL? > > THINK SO. WE HAD A BIPARTISAN HEARING TODAY. I WELCOMED THE COMMENTS OF MY REPUBLICAN COLLEAGUES. THEY REALIZE THAT THIS IS FOR BUSINESS BY INCLUDING THOSE IDEAS AND THEY ACKNOWLEDGED THAT THE WORK OF SOME OF OUR MINORITY FOUNDERS THE TESTIFIED TODAY WAS IMPORTANT TO THE INDUSTRY AT LARGE. DIVERSITY IS GOOD FOR THE ECONOMY AS WELL AS A SOCIAL GOOD. EMILY: INTERESTING TO HEAR SOME OF THE THINGS YOU ARE WORKING ON. WAYS THAT CONGRESS COULD ACT. STEPHEN LYNCH, THANK YOU SO MUCH FOR JOINING US FOR TAKING ON THIS ISSUE. WANT TO CONTINUE THE CONVERSATION WITH A WOMAN WHO HAS SPOKEN UP ABOUT BRO CULTURE. SHE IS THE MANAGING DIRECTOR AT CLEO CAPITAL. SHE HAS BEEN VOCAL ABOUT THE SEXUAL HARASSMENT SHE HAS HAD TO FACE IN THE INDUSTRY. SHE WAS A CHARACTER IN MY BOOK AND I APPRECIATE YOU USING YOUR VOICE IN THAT INSTANCE. IT HAS BEEN FIVE YEARS SINCE YOU SPOKE UP AND YOUR ACTIONS LEAD TO CONSEQUENCES FOR ONE INDIVIDUAL. HOW MUCH PROGRESS DO YOU THINK IT'S ACTUALLY BEEN MADE IN THE LAST FIVE YEARS? > > UNFORTUNATELY, I DON'T LIKE A LOT OF PROGRESS HAS BEEN MADE. WHEN WOMEN SPEAK UP, THEY ARE BELIEVED MORE. PEOPLE KNOW THAT THIS IS A PROBLEM. BUT YOU LOOK AT THE ACTUAL NUMBERS, THEY ARE REALLY BAD FOR BOTH RACE INTO GENDER. THEY ARE EVEN WORSE AT THE INTERSECTION WHEN YOU LOOK AT THE NUMBER OF LIKE AND HISPANIC WOMEN WHO ARE VC'S OR WHO GET VC FUNDING, IT'S ALMOST NONEXISTENT. THE NEW LOOK AT WHAT IS STILL BEING UPHELD, PEOPLE LIKE ELON MUSK THE RICHEST MAN IN THE WORLD TRYING TO ADD TWITTER AND HE WAS JUST ACCUSED OF SEXUAL HARASSMENT ON THE JOB AND THE RESPONSE WAS TO FIRE THE EMPLOYEES WHO HAD A PROBLEM WITH IT. HAVE BECOME THAT ARE? I DON'T THINK SO. EMILY: HOW MUCH DOES THE THOUGHT OF ELON MUSK OWNING TWITTER CONCERN YOU? > > I'M KIND OF RELIEVED BECAUSE IT MIGHT FORCE ME TO LOG OFF TWITTER FOREVER. EMILY: WE HEARD PART OF THE TESTIMONY. YOU WERE AN INVESTOR AND I'M SURE YOU ARE FAMILIAR WITH HER OWN EXPERIENCES AS A WOMAN ON WALL STREET THAN SILICON VALLEY. WHAT DO YOU SEE THROUGH THE EYES OF ENTREPRENEURS LIKE HER IN TERMS OF THE BARRIERS THAT STILL EXIST? > > SHE IS ONE OF THE MOST FAMOUS WOMEN IN BANKING AND IT STILL HARDER FOR HER TO GET FUNDING THAN A MAN AND A HOODIE WITH A HALF-BAKED IDEA. THERE ARE NOT ENOUGH DIVERSE, FEMALE, INVESTORS OF COLOR WHO CAN TURN AROUND AND RECOGNIZE GREATNESS WHEN THEY SEE IT IN THEIR PEERS. THINGS NEED TO CHANGE ON A LOT OF LEVELS BECAUSE WE ARE MISSING OUT ON SO MUCH WEALTH GENERATION BECAUSE WE AREN'T FUNDING PEOPLE WHO ARE WHITE DUDES. EMILY: HAVE THEY MADE ANY STRIDES, CERTAINLY THOSE FUNDS HAVE EARNED -- ADDED WOMEN PARTNERS. > > TO SOME EXTENT, THEY WERE CALLING THEM OUT EXAMPLES OF HERE'S WHAT EXISTS IN THE ECOSYSTEM. A LOT OF THE LEGACY FIRMS ARE TRYING TO IMPROVE. THEY'RE ARE HIRING MORE WOMEN, LAUNCHING PROGRAMS WHERE YOU OFTEN SEE MORE DIVERSITY COME FROM VERSUS LATER STAGE. THE ENTIRE INDUSTRY HAS A LONG WAY TO GO. IF ONLY THOSE THREE FIRMS WERE UNDERWAY ON -- UNDERWEIGHT ON DIVERSITY, IT WOULDN'T BE SO BAD. EMILY: WHAT HAS TO BE DONE? THERE IS SOMETHING TO BE SAID FOR ACCEPTING THE STATUS QUO? > > WE HAVE GOTTEN SOME BAD ACTORS OUT OVER TIME, BUT THERE'S A LOT OF NOT SO GREAT ACTORS THAT REMAIN. THE QUESTION IS HOW DO YOU MAKE IT CLEAR THAT YOU HAVE TO HAVE A DIVERSE INVESTMENT TEAM? IF YOU ARE A LIMITED PARTNER, YOU HAVE TO DEPLOY CAPITAL TO DIVERSE INVESTORS OR FUNDS THAT HAVE DIVERSE INVESTORS AND YOU HAVE TO BACK DIVERSE FOUNDERS. THOSE WERE THE THREE THINGS THAT HAVE TO HAPPEN. EMILY: THERE WAS A LOT OF CONCERN THAT WOMEN WOULD BACKSLIDE DURING THE PANDEMIC. WE SAW THAT WOMEN LEFT THE WORKFORCE TO TAKE CARE OF THEIR FAMILIES. ARE YOU CONCERNED THAT WILL HAPPEN AGAIN? > > IT ALWAYS HAPPENS. WE SEE IT TIME AND TIME AGAIN. THE FUNDS THAT STRUGGLE TO RAISE ARE GOING TO BE DISPROPORTIONATELY LED BY WOMEN AND PEOPLE OF COLOR. WHEN THOSE COMPANIES FAIL, IT WILL BE SEEN AS A MORAL FAILING RATHER THAN MARKET CONDITIONS. BLACK FOUNDERS HAD AN UPTICK IN FOUNDING IN 2021 FOLLOWING THE BLACK LIVES MATTER PROTESTS AND THAT IS GONE. MARKET CONDITIONS THE WHERE THEY ARE, IT'S INCREDIBLY HARD TO ASSUME IT'S GOING TO BE A GOOD YEAR TO BE A WOMAN OR PERSON OF COLOR IN THIS INDUSTRY. EMILY: WHAT ARE YOU SEEING BEHIND THE SCENES IN THE DOWNTURN? WHAT'S HAPPENING WITH REVIT ROUNDS, VALUATIONS, LAYOFFS? > > THE GOAL OF LAYOFFS IS ALWAYS CUT DEEP ENOUGH THAT YOU DON'T HAVE TO DO IT AGAIN. I THINK THERE'S A MASSIVE AMOUNT OF HIRING SLOWDOWNS. MY OWN COMPANY HAS SEEN A LOT OF INSIDE ROUNDS. THEY AREN'T THESE FLASHY HEADLINE GRABBING ROUNDS, BUT FOUNDERS ARE GOING TO THEIR EXISTING INVESTORS OR A FEW NEW ONES AND SAYING I'M GOING TO BRING IN $10 MILLION MORE OR $20 MILLION MORE TO TIDE US OVER SO WE HAVE THREE YEARS OF RUNWAY INSTEAD OF 18 MONTHS. EMILY: ARE INVESTORS OPEN TO THAT? > > INVESTORS ARE DOING IT HANDS OVER FIST. YOU ARE NOW LOOKING AT COMPANIES WHERE THEY ARE RAISING AT MASSIVE DISCOUNTS TO WHERE YOU MIGHT'VE THOUGHT THEY WOULD HAVE BEEN SIX MONTH AGO. IF YOU HAVE DRY POWDER WHICH VENTURE CAPITAL HAS BEEN RAISING HISTORIC AMOUNTS OF MONEY OVER THE LAST TWO YEARS, THERE'S A LOT OF DRY POWDER AND PEOPLE ARE GOING TO DEPLOY IT TO GET SOME DEALS. EMILY: HOW ARE YOU EVOLVING YOUR STRATEGY? ARE YOU STILL BULLISH ON CRYPTO? > > I AM ALWAYS BULLISH ON CRYPTO. I WAS EARLY IN THE SPACE. IN CRYPTO, WHAT WE HAVE SEEN WHEN YOU LOOK AT THE HISTORICAL BITCOIN PRICE,, NOT THE NFT'S, I DON'T WANT TO OWN A PICTURE OF A DRAWING OF AN APE, BUT WHEN YOU LOOK AT BITCOIN WHAT YOU SEE IS HISTORICALLY CRYPTO WINTER HITS, THE PRICE GOES DOWN THEN IT STARTS TO GO BACK UP. IT BECOMES A GREAT TIME TO BUY WHEN THERE IS A DOWNTURN IF YOU ARE A TRUE BELIEVER. EMILY: CRYPTOCURRENCY HAS BEEN VERY MALE-DOMINATED. WHAT ARE YOU SAYING THERE? > > I THINK CRYPTO IS UNFORTUNATELY LIKE THE REST OF THE TECH INDUSTRY, MALE-DOMINATED LIKE FINANCE. THERE ARE CERTAINLY SOME BRIGHT SPOTS. THE INDUSTRY HAS TO FUNDAMENTALLY CHANGE AND IT'S THE SAME VC'S FUNDING CRYPTO COMPANIES AS TECH COMPANIES. EMILY: IT'S GREAT TO HAVE YOU BACK. THANK YOU AS ALWAYS FOR YOUR VOICE IN THIS CONVERSATION. COMING UP, MORE ABOUT SEXISM IN THE DIFFERENT PART OF THE TECH INDUSTRY THAT IS CRYPTO. I WILL BE JOINED BY A CRYPTO INVESTOR AND FOUNDER. HER PERSPECTIVE NEXT. THIS IS BLOOMBERG. EMILY: TIME FOR OUR CRYPTO REPORT. BITCOIN IS ON TRACK FOR ITS WORST QUARTER IN MORE THAN A DECADE AS A STRING OF LOW UPS CRUSH CONFIDENCE IN THE SECTOR. 58% PLUNGE IS THE LARGEST SINCE THE THIRD QUARTER OF 2011. ARE WE NEARING THE BOTTOM? LET'S RING IN TEGAN KLINE. THANK YOU SO MUCH FOR JOINING US. I WANT TO TALK TO YOU ABOUT YOUR PERSONAL EXPERIENCES IN THE SPACE COME UP LET'S GET A COMMENT ON THE MARKET. BITCOIN BELOW $19,000 FOR THE SECOND TIME IN TWO WEEKS. HOW MUCH LONGER DOES IT LAST? > > THE EXCITING THING THAT I AM SEEING IS THAT CENTRALIZED FINANCE IS WHAT BROKE, NOT THE CENTRALIZED FINANCE. IT HELD UP WELL. IT'S A GOOD OPPORTUNITY TO GET INVOLVED IN THE BITCOIN SPACE NOW BECAUSE WE ARE SEEING DEVELOPERS AT THE HIGHEST POINT WE HAVE EVER SEEN AND THEIR BRILLIANT MINDS COMING BACK INTO THE SPACE. EMILY: YOU STARTED YOUR CAREER ON WALL STREET AND LEFT TO JOIN THE CRYPTO INDUSTRY. HOW WOULD YOU COMPARE AND CONTRAST THOSE CULTURES? > > VERY DIFFERENT. MY TIME ON WALL STREET, IT'S VERY DIFFERENT. DIFFERENT PERSONALITIES. A LOT OF STRONG PERSONALITIES ON WALL STREET. WHEN IT COMES TO THE PROTOCOL LAYER AND THE BUILDERS, I HAVE HAD A LOT OF GREAT AND FRIENDLY EXPERIENCES IN THE SPACE. AND IT COMES TO WOMEN IN THE CRYPTO SPACE, MANY ARE THERE TO LIFT OTHER WOMEN UP. EMILY: WOULD BRO CULTURE BE A FAIR CHARACTERIZATION OF WALL STREET AND NOT OF CRYPTO CULTURE? > > IN MY EXPERIENCE, YES VERY MUCH SO. IT DOES STILL EXIST IN THE CRYPTO SPACE. THERE HAVE BEEN A LOT OF TECH VC'S THAT BRING IN THAT CULTURE AND THEY INVEST IN FOUNDERS THAT ARE MORE BRO CULTURE BUT IN CRYPTO, YOU HAVE CRYPTO NATIVE VC'S AND A LOT OF THEM ARE OPEN TO THE MORE VERSED HE -- DIVERSITY. EMILY: HOW DO WE KEEP THE TREND GOING? WHETHER IT'S MORE FEMALE EXECUTIVES, GETTING MORE WOMEN INVESTING IN CRYPTOCURRENCY IN GENERAL, WOULDN'T THAT ALL HELP KEEP THE CRYPTO INDUSTRY FROM FALLING INTO THE SAME TRAP THAT TECH HAS? > > ABSOLUTELY AND THAT'S AN IMPORTANT POINT. WE NEED TO INVEST IN WOMEN AND WE ALSO NEED TO GET WOMEN ON THE CAP TABLE. SO COMPANIES ARE TAKING WOMEN FEMALE INVESTORS AS WELL. IT SO OFTEN THAT I SEE CAP TABLES THAT ARE ALL MEN AND WOMEN SEE THAT, WE HAVE A RESPONSIBILITY TO CALL IT OUT. NOT ONLY AS WOMEN, BUT AS MEN. IT'S ALSO IMPORTANT TO HIRE STRONG WOMEN THAT SUPPORT OTHER STRONG WOMEN. ADDING WOMEN TO LEADERSHIP ROLES WITHIN COMPANIES AND THAT'S ONE THING THAT I TAKE SERIOUSLY AS A FOUNDER WITHIN THE SPACE. TO BRING STRONG WOMEN INTO THE COMPANIES AND READERSHIP ROLES AND WOMEN POWER. EMILY: WHAT ARE BIG MISCONCEPTIONS ABOUT THE CRYPTO INDUSTRY THAT WE SHOULD RAKE OPEN TO GET WOMEN INVOLVED? > > ONE IS THAT YOU HAVE TO BE TECHNICAL, YOU HAVE TO BE AN ENGINEER. DON'T. WE WELCOME FEMALE ENGINEERS AND CODERS INTO THE SPACE OF COURSE, BUT WE ALSO NEED MARKETING, PEOPLE WHO RAISE CAPITAL. EVERY SKILL SET THAT EXISTS IN THE WORLD EXISTS IN THE CRYPTO SPACE. THERE ARE SO MANY COMMUNITIES YOU CAN BELONG TO. DIFFERENT COMMUNITIES ACROSS ANY DIFFERENT ASSET CLASSES. > > WE WERE SPEAKING WITH STEPHEN LYNCH EARLIER WHO JUST CHAIRED THIS HEARING ON COMBATING BRO CULTURE IN FINTECH. HE TALKED ABOUT THINGS LIKE THE SEC TAKING A CLOSER LOOK AT EXECUTIVE TEAMS OF TECH COMPANIES. WHAT WOULD YOU LIKE TO SEE FROM CONGRESS? WHAT COULD CONGRESS DO THAT WOULD MAKE A DIFFERENCE? > > IT'S UNFORTUNATE THAT CONGRESS HAS TO STEP IN AND WE ARE NOT SELF-REGULATING. I THINK THAT WE ARE VERY MUCH CAPABLE AND IT FEELS LIKE WE ARE AT A POSITIVE TREND BUT I WOULD LIKE TO SEE ALL OF THIS CALLED OUT WHEN YOU SEE BAD BEHAVIOR. THERE ARE SOME CONFERENCES WHERE IT'S ONLY MALE PANELISTS OR MALE SPEAKERS SO WILL MY SEE THAT KIND OF BEHAVIOR, IT'S IMPORTANT TO CALL IT OUT. > > THANK YOU SO MUCH FOR JOINING US. MUCH MORE AHEAD. STAY WITH US. THIS IS BLOOMBERG. ♪ EMILY: AMAZON WAS DEALT A BLOW IN FEDERAL COURT AFTER ALLOWING THE FEMALE EMPLOYEES MOVE FORWARD WITH A DISCRIMINATION COMPLAINT IN CALIFORNIA. SHE CLAIMS AMAZON OFFERED HER HUSBAND SUBSTANTIALLY MORE IN WAGES WHEN APPLYING FOR THE SAME JOB DESPITE THEIR COMPARABLE QUALIFICATIONS AND EXPERIENCE. SHE ALSO SAYS THE COMPANY RETALIATED AGAINST HER FOR FILING THIS WAGE DISCRIMINATION COMPLAINT REFUSING TO INTERVIEW HER FOR PROMOTION AND BEING DENIED SCHEDULING CHANGES. A FORMER APPLE LAWYER PLED GUILTY TO INSIDER TRADING BETWEEN 2011 AND 2016. HE TRADED ON CONFIDENTIAL REVENUE AND EARNINGS ACCORDING TO THE CHARGES. HE WAS ONE OF THE MOST SENIOR EXECUTIVES REPORTING TO THE GENERAL COUNSEL. APPLE FIRED HIM IN 2018 AFTER PLACING HIM ON LEAVE. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. DON'T FORGET TO CHECK OUT OUR PODCAST. I'M EMILY CHANG IN SAN FRANCISCO. THIS IS BLOOMBERG. ♪

No schedule data available.

'Bloomberg Technology' Full Show (06/30/2022)

The only daily news program focused exclusively on technology, innovation and the future of business from San Francisco. (Source: Bloomberg)