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tv   Bloomberg Technology  Bloomberg  April 9, 2021 5:00pm-6:00pm EDT

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emily: this is bloomberg technology. coming up amazon workers vote not to unionize, that is the latest in the historic election where there are still disputed ballots being counted and accusations of intimidation by amazon officials. we will have the latest and amazon's response.
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it is on track to be one of the most successful fund launches ever, the architect space etf which gained $500 million in its first five days of trading. the story of wework's rise and fall, including controversy around its founder. the story captured in a new documentary that investigates its origin. we will talk to the filmmaker behind it. all of those stories in a moment, but first, stocks climbing to another record as investors focus on prospects for an economic rebound. >> as the screen shows, it was a strong weak overall for the stock market. the s&p 500 and nasdaq 100 both ending higher and this was the third week of gains in a row for both of those benchmarks. chips had a good week, lagging a little bit, but still positive. it was your faang names, the
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start of the show. that index up 4.6% -- 4.8%. we have seen a big rebound in this sector. the nasdaq 100 closed at a new record today and there is a rocky road getting there. the index went negative on the year in march, but rebounding in a big way now. treasury yields settling down. that is helping tech rebound. if you are looking for a warning sign, it could be that this latest rally is coming on the heels of low trading volume. over the past year, trading volume drops almost every day this week, and that has some traders saying that this is not going to last. i will point out, we have earnings kicking off next week, so that could be a potential trigger. >> i think the economic story is
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vaccines. i am looking at these movers on friday. two key pieces, pfizer and biontech looking at expanding that vaccine to 12 to 15-year-olds, boosting the stocks on friday. also, the european commission wants to get a hold of almost 2 billion vaccine doses in the coming days. that pushing moderna up 5.3% on friday. johnson & johnson under a little pressure, down 1%, due to safety concerns. we need to remind ourselves of one thing. those outperformers -- not that chart -- those outperformers, moderna and biontech, the vaccine makes up such a bulk of their revenue. you compare that with johnson & johnson and pfizer, those are big companies, health care providers. in that case, it is a tiny
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portion of sales they bring and. i want to talk about you time. this is a chinese telecommunications company that ipo'ed at four dollars a share. it had an 857 percent gain on his first day. -- it's first day. fast-forward -- its first day. one trader saying it is mind blowing and it could be people wanting to get an early on ipo's. we will be following utime. of course, one-story we cannot get away from is amazon. amazon workers in alabama working against unionizing -- voting against unionizing. shares near their highest level since february. what is interesting is the stock treaded water for a few days, investors did not pay much attention.
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this is the story. amazon is being middle of the pack, relative to those big cap tech stocks, the only megacap tech stock that has not breached a 2020 record. maybe investors are in wait and see mode with this union vote. emily: thank you so much. sticking with amazon, workers voting not to join a union in a setback for labor organizers and a big victory for the world's largest online retailer. earlier, we heard from richard trumka who said america's labor laws are a disgrace. >> america's labor laws are a disgrace on the world market with all civilized world. they were done 100 years ago and in the times that they have been
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changed, the two times since then, they have been made weaker for workers. this is the truth, and every worker out there knows it, corporations are too strong and workers are too weak and the only way we are going to change that is to band together as one and act fast. emily: for more, we are joined by a bloomberg reported. still some disputed ballots being counted. amazon seems to have resoundingly won this vote. what is next? >> the retail, wholesale, department store union has promised to challenge, to make various arguments. this margin -- it was more than a two-one margin, pretty big landslide loss for that union, which factors into its challenges.
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anything that union brings up, the national labor relations board has to ask, ok, if amazon did this, even if this was wrong, would it affect the outcome? when you have this healthy margin, it makes it a tough argument to make. emily: let's talk about how amazon has responded. they even admitting that there are accusations, amazon saying, it is easy to predict that union will say that amazon won this election because be intimidated employees, but that is not true. we welcome the opportunity -- this is that union now speaking -- we welcome the opportunity to share our ideas with any policymaker who wants to pass laws ensuring that all workers are guaranteed at least $50 an hour, health care from day one, -- $15 an hour, health care from day one.
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the union pledges to appeal. in your reporting, to what extent do you believe that happened, that amazon did intimidate employees? certainly, the union was outspent. spencer: we have not seen specific allegations of intimidation. the closest thing is this notion that there was a mailbox put there that could help amazon somehow surveille the votes. that is a wildcard the union may be able to play, why did they put this mailbox up on site with security cameras monitoring the vote count? that is one thing that could get amazon in a little trouble. in terms of workers being directly told, do not vote for the union or you are going to be fired for union agitation, nothing like that has surfaced yet. could that come out later? sure. we have seen amazon fire people
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elsewhere where it has been alleged and it is being investigated that they were fired for advocating for better working conditions, but not specifically here. the big thing is even if they were to get another election to push for a revote, how did they get more workers to vote yes when they lost by more than two to one? the bottom line is amazon pays pretty well compared to other places that are hiring with a minimum wage seven dollars and change in our. a lot of workers are happy with the pay and happy with the benefits. emily: interesting to hear that perspective. thank you for your reporting on this story, certainly not over, i imagine we will continue to report on this for years to come. coming up, the hottest covid-19 spot in the u.s. right now is michigan where officials are
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calling for the federal government to prioritize more vaccines to the state as it reported more than 49,000 cases in the last week. all the details next. this is bloomberg. ♪
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emily: michigan officials are taking steps to slow the worst outbreak in the united states right now. the governor has asked residents to suspend social activities for two weeks. like other midwestern states, illinois seeing covid cases jump even as vaccinations accelerate. this as the world health organization warns that the pandemic is on the wrong trajectory after six weeks in a row of increases in cases and deaths. for more, i want to bring in jodi schneider.
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why are cases accelerating even as vaccines are accelerating across the country? >> in one word, it is variants, which are fast spreading, they are hitting some states very hard and michigan is among them. that is why we are seeing the governor take that action, to ask people to voluntarily stop activities. she's not doing a shut down, that would seem politically unpalatable now, but they are having 49,000 new cases, which is a big increase in just the past few weeks. it is the fact spreading variants and they are saying younger people, people in their teens and early 20's, people who have not yet been vaccinated because the vaccination effort started with older people first. we are starting to see this group that had not been affected before get the virus and
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hospitalizations have gone up as a result as well. emily: governor whitmer asking the biden administration for more support on the vaccine front. in the meantime, you have pfizer and biontech seeking to expand vaccine access to teenagers. what can you tell us about how ready the vaccine is for adolescents? jodi: pfizer and biontech did say, they announced that they are going to be making a request to expand the emergency use authorization they have in the u.s. and other countries to include 12 to 15-year-olds and studies have shown that the vaccine is as effective in preventing serious cases of covid from that age group as it is for adults. it is a good sign, they are asking for that. governor whitmer saying she
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would like more vaccines sent to her state because of that surge, although the government is saying -- the federal government is saying they are not changing their policy, they are sending vaccine to states based on population, not on the severity. for now, they are not going to get more and michigan, but it looks like that authorization may be soon coming for younger adults -- sorry, for teenagers, and that would be a big help before the school year starts in the fall. emily: right. thank you so much. your whole team giving us up-to-date. jodi schneider has been covering the pandemic and vaccine rollout. i want to turn to brazil, the country that has reported more than 4200 covid deaths just on thursday, its highest single day told of the pandemic. some predict brazil could
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outpace the united states to become the world's most lethal hotspot as sao paulo will move due to red phase of the reopening plan. i'm joined now by julia leite. why is the situation in brazil accelerating so much? julia: i think a lot of what is happening is similar to what jodi was explaining about michigan. we have the new variants that emerged in a city to the north of the country and it is much more contagious, possibly more lethal, and what we are seeing is the virus rage through a younger population. before the first phase, it was the elderly and people that had comorbidities, and now we are seeing patients getting younger, getting very sick and dying in the hospitals, in their 20's,
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30's, and 40's. emily: what is the president doing? has he changed his approach since the early days of the crisis? julia: he has changed his approach somewhat. he was very adamant about not wanting to be vaccinated himself and very dismissive of vaccines, took a while to buy vaccines, and that leaves brazil behind in the race. we have only fully vaccinated about 3% of the population, a very low number. the u.s., i think you are at bolsonaro continues to speak against any sort of restrictions , so lockdowns. his argument is that the economic toll of everybody at home is worse than what the virus is.
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he is saying, people die anyway, we have to move on. emily: that is a reminder of how much of the global population remains to be vaccinated. julia leite, thank you for calling in and giving us the situation on the ground. coming up, undo space etf rocketing higher, why it is on track to become the best-performing fund ever and what the critics are saying. this is bloomberg. ♪
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emily: the boom in space exploration, satellites, and a space economy has taught -- caught the attention of kathy woods. the fund has been on a tear since its debut with investors adding six under billion dollars in two weeks. others are still skeptical. some companies included are
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netflix and john deere, which do not seem to have an obvious place in a space exploration etf. joining me for more is renato leggi. that etf on track for one of the most successful launches ever come off some of the expected names, virgin galactic and boeing. what is driving the initial growth? renato: what we are seeing is rocket and satellite costs are starting to decline and that is thanks to advancements in deep learning, 3d printing, robotics. we believe these cost declines are hitting a tipping point that i going to unleash a tremendous amount of demand. we think the aerospace industry, including satellite connectivity and hypersonic travel, will exceed $370 billion annually. this includes portfolio companies like virgin galactic.
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also, this is all only part of what we are investing in. we are including anything above ground. these are companies that are manufacturing and developing autonomous drones and platforms. we are also investing in some enabling technologies like 3d printing and the key beneficiaries of these industries and global connectivity via satellites. emily: let's talk about why there are companies like netflix. explain that to me, how that ties into space. renato: i think people were surprised to see those holdings. john deere, netflix, google, alibaba, tencent. i think that is what differentiates us and represents a significant market inefficiency in the public equity market. i think that is true for many of these disruptive technologies
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that we are trying to capitalize on. netflix will benefit from this global connectivity. 3 billion people around the globe do not have access to the internet. in the u.s., 40 million people don't have access to broadband. netflix -- netflix will benefit from this. emily: many of the more our profile -- more high-profile companies -- has it harder to make the find the -- to find the right names. renato: we are keeping an eye on private companies as well. we are seeing an uptick in private companies going public. that is expanding the universe and opportunities. we keep an eye on valuation, that has been pushing us away from some companies that have gone public, even though -- just
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because they spit -- fit the space scene does not made -- does not mean they make sense from a valuation standpoint. emily: ark has a huge retail following as well. what percentage of the investors are retail investors? renato: we have roughly around 80% of our client base is retail. that includes the financial areas, the big banks and advisors as well. a little challenging to see exactly is holding our etf's, we do not have as much transparency as a mutual fund. there are a lot of institutional investors as well. sovereign wealth fund, endowments, foundations. emily: kathy has become quite a
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celebrity, not just on wall street, but beyond, and the launch of this space etf has sparked a whole new genre of video's on tiktok -- videos on tiktok about her. renato: we keep our head down and focus on our research and identify these disruptive technologies and investing in them. part of the process, we push all of our research out there as it is happening and we like feedback from the communities, especially those that are driving some innovations forward. we interact with -- there is a lot of noise, but we interact with a lot of earlier stage venture capitalist investors, professors, entrepreneurs, people driving these technologies forward. that creates opportunities for us to better understand not only these technologies, but through
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those winners bilby. -- those winners will be. emily: you have or have a concern that some ambassadors might be getting people the wrong information? renato: we do a lot of research and we push a lot of our research out there on twitter, social media. there is a natural filter, we are able to create our analysts because they have the technologies and expertise that we are researching, they have the ability to connect with those driving some of these technologies forward. they provide a lot of valuable insight. we are trying to forecast exponential growth. you can make an assumption, that could lead to a mistake. having that feedback helps with this iterative process. emily: it is fascinating to watch the launch. we bilby -- we will be watching.
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thank you for joining us. coming, we will hear more from my interview with melinda gates. this is bloomberg. ♪
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emily: welcome back to bloomberg technology. from the chip crisis to the global pandemic, the international monetary fund and world bank spring meetings are being held virtually this week and while the ims upgraded its economic growth forecast around the widening inequality of the vaccine rollout, we took a deep dive into those concerns. >> the global economy is on call for its facets growth and half a century this year but it looks
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different depending on where you are. >> vaccine policy is an economic policy. only vaccinating everybody everywhere will get us out of the risk of this mutation. >> vaccine nationalism is hitting the world's most disadvantaged nations the hardest. the hope of global solidarity in fighting the pandemic is waning as many of the poorest nations continue to wait for millions of doses. >> no longer can we expect poor countries to stand in a queue waiting to get vaccines. the fact that the food said that 70% -- the who said 70% of vaccines have been administered by 10 countries is glaring. >> the biggest vaccine
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manufacturer is a key supply to the program that makes 2 billion vaccine distributed -- vaccine doses that are supposed to be did to low and middle income countries. plans already pair back these shipments to tend to a new wave of domestic infections. poor countries are being left behind while developed nations power ahead with most of the population having received a vaccine. in the u.s., celebrating almost 170 million shots, there is plenty to do more outside of its borders. >> the world has to come together to bring the pandemic to an end everywhere. for that to happen, the united states must act and we must lead. >> violet developed countries are making strides, inequality continues to build -- while developed countries are making strides, inequalities continues
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-- inequality continues to build. emily: it has been a year since the pandemic changed our world. i caught up with melinda gates, cochair of the bill and melinda gates foundation. i talked with her about the unequal distribution of vaccines and how it is not just up to philanthropy, but governments to step up. melinda: i think we still have a ways to go. we are seeing a light at the end of the tunnel in the united states, but until all americans are vaccinated, we still have a ways to go. it is going to be a while until the entire world is vaccinated. this is still going to be without the next few years and i think we are going to have to watch these variants. that is still concerning. emily: what is it about the variants that concern you? melinda: we know viruses mutate,
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but when they mutate, they can become sometimes more deadly or more contagious, so any time you see these mutations, we need to be on top of them and figure out , do we need to tune various vaccines to take care of them? emily: your foundation has committed $1.75 billion to the fight against covid. i know your team is diligent about looking at where and how that money is spent. in your view, where is the vaccine rollout working and what is not working? melinda: i think it is working and some of our high income countries, we are starting to see broader distribution in the united states and in some of the european countries. but it is not at all working yet for low and middle income countries. those are places where people are struggling, they have loved once you get ill, they cannot
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get them to a hospital, so they are still struggling in many countries around the world. emily: there is a moral case for vaccine equity, but what about the economic case? why should somebody in new york or san francisco care when somebody in africa gets the vaccine? melinda: absolutely is the right moral thing to do, but economically, we are not going to have as swift swift recovery in europe if we don't make sure -- as swift a recovery in the united states or europe. as these variants break out, they will come back into the united states and europe and japan. so our supply chains will not be up and running, we will not get our travel industry up and running. economically, if we are going to be open the global economy -- reopen the global economy, we
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have to take care of this everywhere. emily: i wonder if we are going to see the most meaningful change in the world coming from philanthropy, from wealthy people, rather than governments. is that how the world is going to change? melinda: i don't think so. i think what we should expect is that philanthropy can often take risks, they can try innovations that sometimes work and sometimes fail. they can look for new solutions, they can help us collect the data, but ultimately, it is always up to government to scale up these innovations degree a change. the vaccine for covid is a perfect example. those are pharmaceutical companies working with philanthropists and investors, but working with the government. it is billions of dollars from the government that will pull that vaccine through and purchase it for americans and people in low income countries. it is always up to government, but i think philanthropy and
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civil society can always help lead the way. emily: part of my interview with melinda gates. you can catch the full interview this weekend, playing at various times throughout the region. you can watch on or download the podcast. the white house chip summit happening next week, a number of prominent executives have been invited. we know a little more about who those executives will be. >> it is a good thing taiwan semiconductors, one of the companies at the heart of this story, had earnings late thursday night. softer by about half a percent. at a time when supply is limited, it is no surprise that sales, the company that manufactures the chips, third
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straight quarter of record sales. that growth level still at double digits. there is a political story here. this is taiwan export and import steroid exports being the white line -- and imports. exports being the white line. they are surging. there is a lot of demand for chips. the question for president biden and those ceos is how do we fix the balance? how can the u.s. get in on some of those different exports of semiconductors? if you look at this next board, the issue is investment. we know intel wants to put 20 billion dollars into domestic manufacturing of semiconductors, but samsung and another company have both pledged $100 billion, five times what intel plans to spend.
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that is what we are looking for signs of on monday. how do you get more supply quickly? how long is it going to take? hopefully we will get some inside scoops on what is happening. emily: we know some of the executives attending include executives from intel and some car companies. thank you for that update. we will be all over that next week. coming up, the wework debacle capture the attention of the world in 2019. now the company's bison fall is featured in a new hulu documentary -- rise and fall is featured in a new hulu documentary. jed rothsteinjed rothstein more from -- more from jed rothstein next. this is bloomberg. ♪
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emily: the company we work founded by adam neumann and backed by softbank was valued at $47 billion two years ago, but plans for an ipo imploded after investors raised concerns about its business model and adam neumann's management style. the pandemic has driven we work to close many locations, cut thousands of jobs, and renegotiate leases. now wework is in the process of going public. it is valued at $9 billion. still a big deal, but certainly not what it was. that is more than five times lower than its peak valuation. hulu has a no documentary out -- new documentary out by jed
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rothstein. jed joins me now. this story has been so fascinating, a roller coaster over the last couple years. as you were recording this out, what was the thing that surprised you most about this story? jed: i knew the outlines of what happened to the company and adam's journey as the leader of it, but i did not understand the journey that so many people who worked there took. it was interesting to learn about the people who helped make the company. emily: how many ex-wework employees did you speak to? jed: we spoke to dozens of people, not all of them are in the film, but in researching it and finding out whose stories would be best representative of
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the overall story, we spoke to dozens of people from all areas of the company from high up executives to mid-level folks to some people on the ground. emily: what was their main message? what did they think went so wrong? jed: i think what was interesting to me is a lot of people who join, especially as younger millennials or some people who were a little order -- older felt like there was something to the idea and their experiences were meaningful to them, which is what gives the story some heart because in the end, when things go south and adam is pushed out and ipo is canceled, i think they felt betrayed because they believed in something that was real. people have different reasons describing adams hubris -- adam's hubris or believing too
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much of his own hype. i think they also point to the pressures of the big investors who obviously expected wework to live up to its title as a tech company. i think what, from a narrative perspective and human understanding perspective, was most interesting is that people felt that their experiences were meaningful and important. emily: you censor on this video -- center on this video of adam trying to put together an ipo roadshow video. how did you get your hands on that footed? jed: i cannot really get into the journalistic methods and sources in that regard, but i can say, to me, it was revealing.
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i know when we started the film, it was unlikely that adam would participate because he was in the middle of litigation. i felt it was important to see this man who had built this company by being an incredible salesman and spent hours in front of video cameras turned on to get a high the scenes of that. so that video is revealing because you see him unable to do this thing that he does so well, he was unable to deliver a pitch to video, which is something he had done thousands of times. to me, it is like the pinnacle moment of needing to do that, right before you go public, which is something he should have been able to do easily and he could not. it makes me think about what might have been going on in his head and all the pressures he was under and that ultimately he cannot get over at that moment. emily: in the short period of time since wework's implosion,
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there have been stories in books, podcasts, movies and production. how did you push yourself to tell something different about the story and why should people watch it? jed: number one, you have probably heard the basic outline of the story but you don't know the people until you see them. when you can see a videotape of people and learn more about them and understand them better as characters, you understand more about what they did and why they did it. i also think i'd like to focus on, rather than just making a morality tale about adam's hubris and therefore he is bad in the venture capital markets that pushed him to take risks are bad, i tried to look at the story through the perspective of the people who worked there and understand the human side of it and the basic questions that wework was answering about how
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we work together and take from that, hopefully some lesson about how we can rebuild and rethink capitalism as we emerge from this pandemic as bre thinking so many things. to me -- rethinking so many things there at to me -- so many things. to me, it feels like i distanced -- distant past and i hope we are never what about it was good and what about it was off the rails. emily: even though adam did not participate in the film, have you heard any reaction, any contact? jed: i heard anecdotally that he had not watched it but was going to. i have not heard any clear sense from him, i have not gotten a formal reaction. emily: any thoughts on the
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outlook for the wework of today? it is still a $9 billion company, it is not nothing, but it is certainly a shadow of what it once was. jed: i would imagine that a company like wework would be well-positioned to come out of this period of covid and the pandemic and do well. as i am sure you report often, -- often, a lot of large companies are deciding that they want to have less space and more flexible arrangements and shedding these big leases. something like wework probably offers a lot of solutions for them. i know they are going public through a spac, that is an interesting way to come to market. i know that they have pared back some of the elements of the company that were perhaps
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problematic when they tried to go public are your ago. my hunch is they will do well -- a year ago. my hunch is that they will do well. emily: we are going to be covering the next chapter of wework here on bloomberg technology and if you want to learn the background, check out the documentary. thank you for joining us. you can catch the documentary on hulu. coming up, virtual events have taken center stage in the pandemic, creating new opportunities for artists. we are going to look at one platform making it possible. this is bloomberg. ♪
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emily: the pandemic has kept many of us apart but brought so many of us together. from virtual, he shows to cooking classes and award shows and concerts, we have seen a
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shift in the streaming landscape . there is a new way of tuning into a rock concert from your living room and will artists benefit? i am joined by calvin lui of inlive. how does it work? calvin: we have created a new streaming platform designed for the entertainment industry that gives power back to shows directly to the consumer. what producers of content do, they use our technology to get hd streaming capability, access control, ticketing, distribution to multiple places all within a direct to consumer type of
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experience where they can control the look, feel, branding , and relationships with their fans. emily: we are looking at the videos -- looking at videos of amazing artists. what has been the most successful live event so far? calvin: success is in the eye of the beholder. we have done so many types of events across different types of verticals. we helped mark ruffalo put on a live theatrical play to benefit his alma mater. we have done live photo shoots, transforming photo shoots for spin magazine into one hour variety shows. we just did a movie premiere last night, a movie called north hollywood, executive produced by pharrell williams.
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depending what you mean by success, i think it has all been powerful and successful. emily: it is not just concerts, we are looking at mark ruffalo doing a broadway play. i am curious, how much of this virtual event format is here to stay and will be done in combination with live, in person events and how much does it start to die once everyone is vaccinated and life goes back to some sort of new normal? calvin: great question. i think the toothpaste is out of the tube. it is like when your eyes are open to hdtv, you don't go back to sdtv. people have realized that virtual experience is not a replacement for in person, it is not at a placement for television, it is yet another way for you to consume, create content, and create engaging
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relationships between artists, producers, and fans, something that you cannot really get because of the barriers of the geography, timing, and lack of interactivity and other formats -- in other formats. emily: how much will this impact revenue stream? are these new revenue streams, does this take away from what they might have made in person? calvin: working with a lot of industry insiders, big to independent producers of content, they view this as widening the market space. this is going to be a great augmentation to that they have. it is going to give them new channels. we have been working with npr shows that allow them to do streams that bring audio to video to life and they can do more with interactive content through streaming that supports and adds to what they see and
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hear on the radio. emily: we will have to leave it there. thank you for joining us. that does it for bloomberg technology. have a wonderful weekend. this is bloomberg. ♪
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david: as the economy starts to come back bringing jobs with it in the u.s. hits new records of covid vaccines? , what's not to like? this is "wall street week." contributors larry summers of harvard. >> i would like to have seen a boulder, bigger vision on infrastructure. david: howard marks of oaktree capital, josh bolton of the business roundtable. >> we are against the increases in corporate taxes, strongly against it. david: marty chavez of 6th street partners. >>


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