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tv   Bloomberg Technology  Bloomberg  April 1, 2021 5:00pm-6:00pm EDT

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♪ emily: i am emily chang in san francisco and this is bloomberg technology. coming up, ev stocks get a boost as president biden's mounts a major push to accelerate the adoption of electric cars. we will talk about at all with dan ives. plus, the global chip shortage.
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how bad is it? more for my interview with a ceo. and social media -- how facebook and instagram fanning the flames around misinformation for vaccines and anti-factors targeting women. all of those stories in a moment, but u.s. stocks touching record highs, bloomberg's kriti gupta has the whole picture. kriti: you saw a lot of green on the screen. the s&p 500 in the green. a lot of it below the surface looks very tech driven. you see the new york faang index, so up 1.4%. not substantially higher than the s&p 500 and that is because you saw sectors in the green, even energy at the top of the pack. i really want to show you what the ev space was doing and has been doing. the big question going into today's market session was how much of biden's infrastructure plan and pushed into evs was
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priced in. you see back during the election, you see this major run up, so there it tells you that there has been a lot of it priced into the markets. will we see that eve in -- ev space continue to rally? semiconductors at the top of the pack. we know they have been rallying from the chip shortage and having another massive day, up 3.7%. also he was extremely tough on china. nasdaq golden dragon index also doing pretty good. the nasdaq biotech index was rallying, with even the big tech and semiconductors. emily: kriti, thanks so much for
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that roundup. bloomberg's kriti gupta. after a hard year for most ev stocks, most getting a boost as president biden mounts a major push to speed up adoption of electric cars. his proposal allocates $174 billion to ev's, and in addition to various industry incentives. let's bring in dan ives. what does this actually mean for electric car companies, specifically tesla? dan: this is what we believe will kick off the green title wave. in terms of tesla and gm, the reason it is important as they are going to whip the ceiling on the 200,000 were now you will see tax credits are stored for tesla and gm. we believe that the 7500 goes to 10,000 or potentially more.
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this is the start of what i believe they a $5 trillion market with biden kicking off the green title wave in the u.s., which is underperformance when we compared it to china and europe. emily: so why this reaction in the shares today? they popped a bit about closing down about 1%, why did investors react that way? dan: if i look out, i think that ev stocks are up 30% to 40% from these levels. what we are seeing in china, you see around china's continuing to see skyrocketing growth. you combine that with what we are seeing in europe across the board and of course, now in the u.s., i think this is just the start. i believe that is near term and all of the good news starts as we see more deliveries and numbers over the coming weeks.
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emily: you cover uber as well and i am curious what trends you see post-pandemic for car ownership, car purchases versus ridesharing? dan: i think for now, the names like uber and lyft continue to be front and center despite some of the headwinds in the u.k. we are seeing more and more, especially in urban areas as there is an urban migration, there is a benefit for names like uber, but when we look at car ownership, i think we will see auto sales spike over the coming year in terms of reopening, but it is important that we will see a transformation on easing. 2% of automobiles in the u.s. are ev and that goes to 10% and then asked -- in the next four to five years. emily: what about tech more
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broadly? our big cap tech stocks really reopening plays or as they have seen the incredible rise over the last year, are we going to see that change? dan: i think the selloff has been overdone. in our opinion in terms of the reopening, you take a step back, a digital transformation to the shift of the cloud, we are talking to trillion dollars in the next decade. this is really across the whole ecosystem with cipro securities and others, there are poster childs seeing miter -- moderate growth, but i think we are going into a golden age intact. the next three to four weeks, tech will rally significantly. that starts, what we believe, is a rally towards the nasdaq six in thousand. -- 16,000. emily: this regulation concern
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you? we just saw the ceos of alphabet testify on capitol hill and more scrutiny is coming. dan: especially in section 230 which is broughter in antitrust, we are seeing those swirls -- and i think it is a contained risk. no doubt this is going to be a long, 12 round battle, but the biggest risk for attack continues to be china. the u.s.-china tech war right now. we think about 10% risk right now with discount tech given the view that biden was going to be softer on china, and as we have seen, it has been the opposite, so that will be a fork in the road situation over the coming months. emily: talk to us about some of your more unsung tech reopening plays. you highlight in your notes, okta, docusign, crowd strike -- talk about some of the names we
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do not talk about as often that you think will surprise us. dan: on health care, there is a name like nuance. we will see health-care care spending increased amount on cloud. a new pure play on health care. that could be a re-rating stocks, ultimately succeed dollars or $70. another name i like on the reopening is sharon's which is an autoplay --sarenz, which is an autoplay. more and more driven internationally in terms of that almost being in auto cloud play, so i love those two front and center. and some other names on the cybersecurity side, hybrid environments 30% to 40% working from home potentially, you will see names from the cybersecurity side. another big lift as we are starting to see it out in the markets. emily: where do you think we end
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2021? dan: i think the ball drops in times square, nasdaq 16,000. tech stocks rally 30% from here. it is my view, this has been a golden buying opportunity. i get the rotation trade, 50 bit move in the 10 year, does not change the ball is -- bullish view in ev, so i think this will start to play out in the coming weeks with numbers that will really surprise on the upside. emily: always love that you come to us with specifics, dan. thanks dan ives, appreciate it. investors are showing their loyalty to the famed arc and famed arc investment manager kathy woods, adding a billion dollars in a single day this week.
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her flagship took in a record $717 million on tuesday. meantime, the other took in another billion dollars on its first day of trading. the world was in turmoil amidst pandemic lockdowns. i speak with him next about the company's next chapter and when quantum computing will truly transform the industry. this is bloomberg. ♪ bloomberg. ♪
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♪ emily: has vaccines are administered around the world and pandemic restrictions loosen, companies are trying to chart a path forward. ibm ceo says that he expects 80%
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of their employees worldwide will go back to work and a hybrid model. i asked the ceo what the next chapter of ibm looks like and how the global chip shortage is impacting their work. we started with ibm shares and whether that will be a measure of his success. >> investors only have the one measure which is a stock price, and that is a definite part of the company's report card. let's step back. there is a strategy of what you do and then they how you do it. we are going to be a hybrid cloud and ai company, and then i would say with quantum into the future. the first thing we did is we sort of took out, and we are going to spinouts and manage our infrastructure business, so that is a part of the service, so the pieces that fit the most, stay here.
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the pieces that don't, we will spin out to get value for our investors. next, how do you lean into being more of a hybrid company? we are leaning and with organic and inorganic investments. that is one step, but you have also opened up money for investment in terms of are we going to invest those in our own in again -- our own organic innovation as well as our partners. you begin to put those things together and say, ok, you are increasing investment, you are focusing the company, you are spinning out pieces, you are acquiring companies, you are increasing your ecosystem partners and those should all result in revenue growth in the medium term. you put all of that together, and then you begin to say that that is how you goal to value
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the company and my goal is that to create a hybrid cloud platform that is even more than the mainframe in the past, which is two platforms we had a lot of success with. emily: i know you are super excited about quantum's and i speak to people who say they do not think that quantum is coming anytime soon. when will ec quantum truly transform the industry -- when will we see quantum truly transform the industry? arvind: i give it a five-year time period, which is not that long. you always have to keep your eye on the economic opportunity. it is in the $450 to $550 billion range. so how much of that does
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producers of technology get? the leaders and quantum stand to get as much as 100 billion dollars, somewhere in the next decade. you say, when is it going to happen? i think it is quite real, so today you are having computers that are measured in cubits, quantum bits, 30, maybe 60 is the range for this year. we just announced a partnership with a cuban clinic who wants to use quantum computing, and that as an example where there are real problems. i will agree with you, it is not a commercial advantage. i think that period will come in the next three to five years. we put out a roadmap to say we put out 1000 bits quantum computer in 2023.
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i will not tell you that we have every problem solved, but i have tremendous pride and confidence in our scientists and engineers. engineers are important as physicists to get these working in our time period, and that is where i will believe that we get on the roadmap that i mentioned. emily: big news in chips recently. you are doing a partnership with intel as they are doubling down on manufacturing and a foundry business. given all of the many industries that ibm is involved in an your diversity of clients, how devastating has the chip shortage been, and how much longer do you think it will last? sarah: -- arvind: whenever you get a constraint in the supply chain and you find that the sources and the manufacturing is down to one or two regions, this is going to last a few years. this is not a few months or a few weeks.
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we should be clear about the impacts, it is going to last that long. then you say you want to solve it, so we are working together with intel because we do believe that there should be alternate sources of fabrication and we do believe there should be competitive advantages in the more advanced notes. we have a lot of work on 5, 3, 2 nanometers to categorize where we are. the world today is at seven and 10 nanometers. we are talking about the next generation. we will bring our advanced r&d into intel who will use the fabrication plant that can produce at scale. we believe that is a great way to work together. we also believe that that will allow us together to be much better positioned to compete for the money that are in the chip stocks, endless frontiers, as well as the national semiconductor technology center, so those are all of those
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opportunities in front of us that can result from the work we do together for competitiveness within the nation. emily: ibm ceo arvind krishna there, you can catch the full interview at coming up, anti-vaccine groups on social media avenue targets. women, and they have been quite effective. as we had to break it, let's take a look at the original faang stocks all in the green. tech shares leading those gains. this is bloomberg. ♪
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♪ >> 12 accounts on facebook, twitter, and instagram account for 60% of this information on vaccines on your platforms. why in the midst of a global pandemic that has killed over a
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half a million americans that you have not taken these accounts down? emily: congressman mike doyle of pennsylvania expressing frustration to the ceos of facebook, alphabets, and twitter at last week's house hearing claiming that the social networks have chosen not to take down accounts that have spread vaccine misinformation. we found that the influence of anti-vaccine have reached a particular demographic. women, especially women looking to become mothers. i want to bring in sarah kopit, who helped write the story. it was absolutely fascinating. why have anti-baxter's picked women as a target -- anti-vaxxers picked women as a target? sarah: this goes back quite some time because originally, it was
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with mothers and their babies with the mmr, measles, so the anti-vaxxers was to use the same playbook that they had used previously because it works is just that well and that is what we are seeing right now, and it is resonating among so many women that my partner and i talked to for this piece. emily: what did the women tell you because i understand that you got a lot of different reasons from women who were not getting the vaccine, and of course, the possibility of not being able to have a child was high on that list? sarah: yeah. we heard the gambits. the most prevalent one was around safety. people took an exception to how quickly the vaccine was produced, and they wanted to wait and see, and that is vaccine hesitancy as a definition. that was a really big chunk.
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the fertility part two was interesting as well. a lot of that stemmed from a blog that showed up on social media in early december of last year, and that blog claimed wrongfully that the vaccine inhibits women's fertility. that really found itself all over the social platforms. that was weeks before the emergency authorization was issued that allowed this vaccine to be given first to nurses, first responders, and it was a lot of those nurses that we talked to at first. we went to nursing facebook groups, we went online and we saw the conversations they were having, and nursing as a profession skews female. that is what they were talking about, questions about well, if i am trying to become pregnant or if i am pregnant already, should i just wait, and that is vaccine hesitancy. emily: i just want to add that there is no evidence that the vaccine has a negative effect on
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women or pregnant women or can harm a woman's fertility. in your view, just as an observer, how are facebook and instagram responsible -- are they responsible for how it is proliferated on their platform? sarah: they are trying at this point, but their algorithms, their business model, what they try to do is they try to reward really engaging posts, and that is what drives what you see on the platform. we know just because of how we study did this information overall of these years that lies really do spread faster than the truth. it is more interesting, more titillating. we saw this with -- when this fertility blog went out, pfizer came back with ab -- an answer to this question, does it affect fertility, and they gave
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a very robust, scientific answer, full of scientific jargon, and it is hard for that type of language to really resonate on social media. we say that the people who are giving the information have to do better. they have to live in this world where social media memes, that is what spreads. the scientific community and the companies, they had not quite caught onto that yet. emily: fascinating piece, definitely worth your time in this addition of bloomberg businessweek. sarah kopit, thank you for sharing your story. coming up, the first company solely focused on quantum computing is going public. why the technology may soon be mainstream. this is bloomberg. ♪
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so jeff, you need all those screens streaming over your xfinity xfi... for your meeting? uhh yes. and your lucky jersey? oh, yeah. lauren, a cooler? it's hot. it's march. and jay, what's with all your screens? just checking in with my team... of colleagues. so you're all streaming on every device in the house, what?!! that was a foul. it's march... ...and you're definitely not watching basketball. no, no. i'm definitely not watching basketball. right... ( horn blaring )
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♪ emily: welcome back to bloomberg technology. i am emily chang in san francisco. let's get a quick recap with abigail doolittle in new york. abigail: tech was the story today. big, big outperformance for the chip. that stock closing up more than 3%, outperforming almost near it's all time highs. taiwan semiconductors, they have boosted their spending plan so that put a bid on some of the other chip names, including the machinery that makes the chip.
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often that is in early tell. it is seen as a good sign, plus, in joe biden's and for, president biden's infrastructure plan, 50 billion dollars dedicated to chip manufacturing. the chips really grew. relative to green power and ev, a little bit of split action. on the morning, huge surges in the spaces overall, and you could make the case that $460 billion of that same plan is dedicated to climate change, improving the climate, green power, ev space, however, we see on the close a little bit of a mix. fuel cell and ballard power closing down. fuel cell and some of these other names are up in a huge way over the last year. just since president biden was elected last november, up almost
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90% at this point. let's rounded out with the biggest tech names, because here is why we have the big outperformance for the nasdaq on the day along with the s&p 500 tech being near the top sectors. it is about your biggest companies, microsoft getting that $22 billion contract from the army, bringing the other mega caps higher with it. this is a catch up trade. tech not doing great on the year, but right now, investors want in. emily: exactly. abigail doolittle, thank you. from finance to farming, space travel, and cars, the world depends on computers to crack, crunch, and deliver numbers and automate the world's most complex systems. but these computers can only do so much. as technology and i i becomes more present, the demand for more powerful computing is taking off. quantum computing, the ability
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to compute information in a way that would never be possible with a conventional machine. in very broad terms, four c quantum computers can do it at a faster rate than common computers. drawing the eyes of investors like the ceo niccolo demoss eat that joint is back in september. >> consumer gaining and online casinos, the second was sports book data, and the third will be something probably in cloud computing, ai computing, like the kinds of technologies that underpin the future of mobile. emily: that third company, ionq making it the first company solely focused on quantum computing. we are joined by peter chapman. why now?
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peter: thank you for having me on. as he mentioned, -- quantum computing is an entirely new paradigm of computing. it requires more significant investments to bring it to market, and it gives us access to capital and resources. emily: mainstream quantum computing, how close is that really? we are from the cbm earlier and he is bullish on it and he says three to five years but i am in a another -- he says it is a long way off. peter: different technologies have different horizons -- we also think three to five years, but there are other technologies that are still 30 years away.
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i do think that this is, the companies that make the devices are probably -- have the advantage point in being able to predict when they think they can bring a product to market. emily: how do you believe that quantum computing will change our lives as we know it, like what will be different possible as a result? peter: quantum computing, many people expect that quantum computers will be able to solve many of mankind's grand challenges, everything from direct carbon capture to new battery, solving strong ai in computing and machine learning. since we are talking about much bigger computers, it is kind of hard to say where it will not be used.
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kind of an interesting question if you were to go back to intel and ask them back in the 1870's, what did they think about the little microprocessors was going to be used for, and the answer back then was it is going to be a great calculator. they could not foresee the internet or cell phone. i think it will be the same today with quantum. there are a bunch of things that we know about today that we use classical computers for, but 20 years from now we will look back , and we could not imagine x, y, and z, so we are at the same place. emily: you mentioned carbon capture and i know that bill gates company is one of your investors. how could quantum computing revolutionize a company like amazon? peter: the quantum computing is
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good at solving optimization problems. it turns out many business problems can be converted into an optimization problem. that is to deliver a package to a consumer. so for somebody like amazon, on the side, they should have a lot of interest and logistics applications for quantum. better batteries, and even chemical applications, it turns out that in the production of fertilizer, it accounts for
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about 1% of all carbon emission. so we do have computers that can do that model -- of course, these kinds of things -- emily: not to get too deep, but do you think that quantum will get as close to the singularity where computers will not be able to process the things that we want to but will actually be able to understand what we are asking them to do? peter: before i started with amazon, i was very familiar -- but the short answer is yes. myself, i think that is good
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reason to believe that i quantum computer will be able to unlock that as well. [indistinguishable] emily: we will be watching. to peter chapman, thank you for joining us. apple's much anticipated worldwide developers conference will be held again virtually. we are looking at what we can expect. this is bloomberg. ♪
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♪ emily: apple's worldwide developers conference slated for june is again going remote. attendees from all around the world and networking with other like-minded apple fans. bloomberg tech's mark gurman thinks that as the company is itching to return to in person events, this one will be remote. what can you tells about the event, what will be announced, and how will it roll out? mark: wwcd is typically apple most important event for the next year, and it always gives
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strong indicators of the next hardware to come. for this year unless apple shows an early preview of their upcoming vr/ar headsets, it will be a somewhat muted event. i think the updates will be on a moderate side this year, perhaps a bigger update to the software that runs on the apple and an update to the appletv software, but there are also new macs in the pipeline, with faster apple designed processors that could make an appearance around that time. overall, i think it will be an exciting event for the apple base, but i am not anticipating anything major unless there is that preview of the headset. emily: how do you anticipate apple events will change going forward? will they always be remote or will they come back in their full glory with no changes at all? mark: i think apple events will
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come back to the normal in person format as soon as possible. they are going to do a little bit more to blended the success of the virtual events with the in person events. you will get everything that was great about the end person events being able to go hands-on, being able to be there in person, seeing the products be unveiled on the stage, but they will throw in a lot more videos on the big screens to give that virtual flavor. they will have pretaped videos of other engineers discussing products, they will have videos of people going inside the labs to see how the products are developed muscle you will see a nice combo in the years to come. emily: apple and amazon at -- amazon and google have talked more publicly about their return to work plans. we have not heard much about apple. what do you know about tim cook's desire to have employees back in the office? mark: in the beginning, the push was to get apple staff back into
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the offices as soon as possible, and apple has not talked about this. there have been apple employees still at their headquarters and offices around the world with essential functions all the way to march and the height of the pandemic, and they are using a four phased approach to return people to the office. phase i was the essential workers who were there from the beginning, and right now the company is in phase two, that mean some employees are able to go in if they would like. there is yet to be a full force approach to push everyone back to the office. i am expecting that to happen as early as the end of june into july after the developers conference. emily: it is apple's 45th first day, and tim kick sent a letter to the company that you obtained. he opens talking about the making of transformative
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products that redefined technology, and i quote "we mark this occasion by re-dedicating ourselves to that mission and keeping it alive for a long time to come, rather than to remember it fondly as something passed." what do you think will define the next generation of apple products under tim's leadership? mark: we are talking perhaps the next five years or so, i think the three big remaining things are going to be some sort of push into the smart home, new-home devices, more cohesive strategy. the second thing will be headsets, that would be the first to vr/ar headset that will go on sale next year, and later on, they will launch of the ultimate ar glasses which should be a pretty hot seller down the road, and a little further out, probably going to be a self-driving car or electric car or some sort. those of the three big areas
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that i am looking at. emily: i all of that comes to pass, it will be an exciting couple of years. as always, thanks so much. we just got breaking news. president biden's aides have set april 12 for the dates of a summit with various companies to discuss the chip shortage that we have been talking about for weeks now on the show. president biden and his aides setting april 12 for a summit to discuss the chip shortage with various companies, companies invited to this meeting included samsung and gm. according to our bloomberg sources, we will bring you more headlines as we get them. still ahead, in a pandemic world where more transactions are occurring digitally, financial crimes have surged. we will talk to the head of a tech unicorn that fights
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financial crime using ai after an impressive funding round. stay with bloomberg for our special programming around the u.s. jobs report friday. mark walsh joins a panel of other financial experts friday morning. this is bloomberg. ♪
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♪ emily: as the world undergoes a massive wave of digitization accelerated by the pandemic, cloud-based risk management platform has seen a 600 60% increase in financial account takeover scams and 250% increase and online banking fraud attacks. joining us now to discuss solutions for the rampant financial crimes, nuno sebastiao. talk to us about how much and
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what kind of activity you are seeing just heading into 2021 >> thank you for having me. as you mentioned, we saw these and pressing of number increase -- we saw the impressive number increase. if you compared to last year, the amount in fraud scams, 250% online fraud scams, the amount of impersonations, someone trying to pretend to be you to get access to your financial service systems, over 600%. it has been rampant, so the acceleration to digital that was forced on us, it really blew up, and that they thickly increased the demand for these types of solutions. emily: the unemployment system for example was plagued by a $63
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billion in fraud as unemployment was doled out to millions of americans amidst a pandemic. how does your technology, how could your technology help? nuno: i think i lost you guys. emily: sounds like we are having trouble there, can you hear me? nuno: loud and clear. emily: go ahead. nuno: i cannot say too much about that, but when we work with high security systems like the one you mentioned, making sure that the money flows to the consumers, and that is where it needs to go, and it is done not only in an efficient way but a safe way. we work with organizations to ensure that whenever they wire money, for instance, ppp loans, we ensure that they get to the
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rightful people and to make sure that they land in the hands of the people that deserve it. not used for certain activities and we do this now and the u.s., but also in many regions across the globe. emily: talk to us about your coming plans, you are working with kckr, any plans to go public? nuno: we have been approached by a number of firms, and the same way that kr chose us as becoming a leader in this space, we chose them because their vision is aligned with our vision. what they ensure is they understand where do we want to go, and our vision is to ensure that we become the platform five financial crimes risk management. across all of the points as a consumer.
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just to give you -- up to 5% of the money that flows to financial services is used for money laundering. we make sure that does not happen, or that that stops. they realized it would be the company that would become that player, they are aligned with our gross, so my intention is to be that independent company, if that is an ipo or another mechanism, we will see, but clearly they are betting on us in the same way that we are executing. emily: we will be watching. feedzai co-founder nuno sebastiao, thank you for joining us. we have learned that president biden's aides have set april 12 as the date of a summit on the chip shortage. sources saying that companies invited include samsung and gm. we are working to learn more. next week, we will bring you a
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very special program all about the global semiconductor storage. it is called chip crunch. we will have conversations with the best of bloomberg news. that show is wednesday 5:00 p.m. eastern, 10:00 p.m. in the u.k., 5:00 a.m. in asia. we will bring you a special conversation with robin lee, covering baidu's surge. that is tomorrow across bloomberg television. that does it for this edition of bloomberg technology. this is bloomberg. ♪
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