tv Bloomberg Technology Bloomberg July 15, 2021 5:00pm-6:00pm EDT
betting big on gaming. more on the company's decision to tap a former ea and facebook executive to lead the charge. former head of google ventures is putting a billion dollars to work at the intersection of technology and life sciences. where he sees the biggest problems that need solving as we emerge from the pandemic and how he is putting his money to work. all that in a moment but let's take a moment at the -- take a look at the markets with kriti gupta. kriti: a risk off day in the markets. the two extremes of the recovery trade, economically sensitive small-cap stocks and big tech growth stocks both in the red. it is where you are to see the large breath of selling. s&p 500 down 0.3%. where is the money going? right into treasuries. that is not the trend you have
seen this month. this month, you have seen that diverge. you have seen growth outperformance. those small caps that were rallying so much after jode biden selection, after the pfizer vaccine announcement in november. this month, not doing so well. you're starting to see the divergence signaling there is a safety trade here. what is the driver between this? this is where i want to point to the 10 year yield. that is the white line in the middle. you can stash excuse me, the yellow line. the russell 2000 and the nasdaq are both moving in tandem just as the 10 year yield is as well. as you see the yield dip, it starts to impact the selling. emily: thanks so much for the roundup. jeff bezos has picked an 18-year-old to fly to space.
the origins saying he will be the youngest person to fly to space if all goes to plan. blue origin saying the anonymous bidder who agreed to pay $28 million has a scheduling conflict. i want to bring in the -- everybody knew the day was july 20. that is what this bidder bid on paired what happened here? >> there is very little about this billionaire race to space that has been normal the past few months. first you had jeff bezos announcing he was going to go first despite blue origin employees two nasa astronauts. then richard branson beating him to suborbital space last week. maybe it is not unusual things are once again kind of screwy. they held an auction for the fourth seat on the new shepard. somebody paid $28 million to go
to space with the world's richest guy and they are saying he has a scheduling conflict. it does not really add up. it has moved to the second highest bidder. that is this 18-year-old or his family. emily: right. as i understand it, this 18-year-old father won the bidding. the origins says he chose his son ted i under -- his son. he is planning to study physics in the netherlands. who is he? >> you have said everything we know about his biography. his father is a prominent dutch private equity investor. they did not even think they were in the running. here they are the second runner-up. he is going to have his big
government in suborbital space next tuesday. emily: looking at this instagram account, he is a kid. it will be interesting with jeff bezos, mark bezos, wally funk who will become the oldest person ever, all of them on board together. what you make of the fact richard branson had a successful launch over the weekend? jeff bezos thought he was going to be the first of the billionaires to fly to space. he will be second. last but not least. what are your expectations for the event? >> i don't think jeff bezos viewed it as a race with branson. he picked july 20 because it is the 52nd anniversary of the apollo 11 moon landing. it was not to beat anyone out of the gate. wally funk was a member of the mercury 13th, the female athletes that did not get to fly.
she fulfills a lifelong goal. with all of her, the youngest person to go to space. for jeff bezos, this is symbolic. he wants to reinvigorate interest in space. a sense of swashbuckling adventure. this is more kind of a symbol. it is a symbol of the remarkable trustee has in this company because he is putting himself out there as a bit of a kenny pig and noah human being has -- a bit of a guinea pig and no human being has flown on this thing. seeing his face popping out of the crew capsule if and when it returns safely is going to be an important moment for blue origin , for him himself and people's interest in space travel. emily: we are hoping for a safe and successful launch and we are going to be talking about this i am guessing every day until that happens. thank you for your perspective. .
netflix is making its first egg beyond television and movies, planning to expand into video games. next book -- netflix has hired an executive from electronic arts and facebook. turning us now is a former global head of strategy at amazon studios. great to have you back with us. you predicted netflix would get into gaming years ago. how big can they be in this business? >> the a starting point is to acknowledge -- the starting point is to acknowledge how big they are today. they have 200 plus million subscriptions. over 700 million people. many of whom use the service on a monthly if not weekly or daily basis. that makes it one of the most used platforms globally. that leads you to the question, what is next? no one can launch a media
experience today to more people than netflix. emily: how do you imagine this rollout across netflix? will they be producing their own original games? how robust do you think the offerings will be? >> i think the best way to think about this is to take a look at the historical progression of netflix. they said they started their test for streaming in the early 2000's. they launched in 2007. they launched the originals brand in 2009. launched their first licensed show in 2011. 85% of their new spending in 2019 was for originals. they will start likely with licensed titles. it is clear based on what they have said that this is a long-term trend and they will move farther and farther into more and more creative. emily: your predictions have been good thus far.
you have also said fortnite is netflix's most -- >> reed has always said there competition is leisure time. they'd described their biggest enemy as sleep. this has become a common way to describe competition in entertainment. today, there is no segment of the leisure market that media companies lose two more often than social gaming experience is. you cannot dominate leisure without having a meaningful offering in social gaming. emily: what does that mean for netflix, the traditional competitors that we think of when we think netflix like disney plus and hbo ? >> this is an example of trying to stay ahead of the market.
they were years ahead of binging, many of the things that is driving -- that defined the streaming worse. it is clear gaming is the next big thing and read and the rest of the company seem focused on what the company looks like in 2025 as the market tries to replicate what netflix was in 2013. emily: we are going to continue to fall your thoughts and your portfolio. we just had a company focusing on interactive technology. appreciate your insights. managing director, former amazon studios. thank you for joining us. taiwan semiconductor is underscoring its crucial role in helping alleviate a global chip shortage. tsmc expects sales to rise more than 20% this year. coming up, the blank check boom
coastal ventures was an early investor in the robotics company. the founder joins us now. great to have you back on the show. you have sponsored multiple spacs. given the many years you were a founder of micros systems and you have been an investor for some time, what is the opportunity you see that is new? >> spacs for another opportunity like an ipo or private equity funding. it is just a different vessel. if you look at the biotech industry, they have been able to do ipo's 5, 10 years before revenue. they need to project into the future, explain their future. ipo's have been available to them. many more areas of technology that fit the same model. for them, specs may be a great -- spacs may be a great
opportunity. berkshire gray is a great example of an opportunity -- a great example -- berkshire gray is a great example of an opportunity. it is a technology company that has to be explained. spacs play a larger role in these kind of opportunities. emily: let's talk about berkshire gray. one of your longtime portfolio companies. this is a warehouse robotics company that counts target, fedex, walmart among its clients that helps to automate the supply chain. what you think is so disruptive about their technology and what does that disruption mean? >> we started with the berkshire when it was one founder alone. the opportunity came from the following fact. amazon is a serious technology company, has developed a lot of automation for itself. in a world where consumers are demanding immediate shipments
and low cost livery, every -- low cost delivery, every part of the supply chain from e-commerce to retail fulfillment to grocery to third-party logistics, they all have to be deeply automated. amazon is doing it for themselves. the opportunity for berkshire gray is to do it for everybody else who cannot keep up with amazon. mark:mark: we are going to go to the white house where president biden and german chancellor angela merkel are about to hold a joint conference. the two held bilateral discussions earlier. what's listen in. -- let's listen in. >> before i say anything else, chancellor merkel, i want to express to you and people of germany my sincere condolences, the condolences of the american people for the devastating loss of life and the destruction due
to the flooding over the past 24 hours in germany and neighboring countries. it is a tragedy and our hearts go out to the families who have lost loved ones. chancellor merkel has been here frequently over the past 16 years. she knows the oval office as well as i do. all kidding aside, through this administration, she has been here for four presidents. i want to take a moment to acknowledge the historic nature of her chancellorship should first woman chancellor in german history. the first chancellor from the former east germany. and now the second largest, longest-serving chancellor says elwood cole. an exemplary life of groundbreaking service to germany and to the world.
thank you for your career of strong principled leadership and thank you for speaking out for what is right and for a failing to defend human dignity. -- and for never failing to defend human dignity. want to thank you for your support and your long-standing goal. you have been a stalwart champion of the transatlantic alliance, the atlantic partnership. the french have -- the friendship and cooperation between germany and the united states has grown stronger and stronger. i am looking forward to celebrating more at our dinner this evening. today was very much a working visit. chancellor merkel and i covered a wide range of issues. germany and the united states are working to develop an expansive agenda.
germany and the unit states have a responsibility to lead with our values as do the other members of nato. today, i have confided that in our new washington declaration, which we have codified, a document affirming our commitment to the democratic principles that are at the heart of both of our nations and how we will apply them to meet the biggest challenges today and tomorrow. both our nations understand the imperative of proving that democracies can deliver the needs of our people in the second quarter of the 21st century. we will stand up for democratic principles and universal rights. we see china or any other country working to undermine free and open societies. we are united in our commitment
to addressing democratic backsliding, corruption, phony populism in the european union or among candidates for e.u. membership or anywhere we find it in a the world. we agree on the importance of further integrating the western balkans and to the european institutions. and in our continued support for the sovereign territory of ukraine and the continued importance of reforms in the support of their euro atlantic aspirations. we continue to stand together to defend our eastern flank allies at nato against russian aggression. while i reiterated my concerns about nord stream 2, chancellor merkel and i reunited in her conviction russia must not be allowed to use energy as a weapon to coerce or threaten its
neighbors. today, we are launching a climate and energy partnership. support energy security and the development of sustainable energy technologies and emerging economies including in central europe and ukraine to unite our efforts to upend our global climate in missions -- climate emissions. in the paris accord was set, without we have established how serious it was but things have gotten much more dire since even that date. to up the ante on global climate ambitions. i also think chancellor merkel for the dedication and the sacrifice of german troops who have served side-by-side along with u.s. forces in afghanistan for almost 20 years.
we reaffirmed our shared commitment to continuing the counter threats were refined them including in africa. when we think about the future, the future we want for the world, there is no issue set at all that i believe we find anything other than certain take that -- certainteed that the commitment between united states and germany does not benefit whatever the concern is to we need to fight -- concern is. way to fight the pandemic everywhere. we need to make sure the rules of the road governing the use of emerging technologies advance freedom, not authoritarianism and repression. we need to promote sustainable and inclusive economic recovery
that enhances the prosperity and opportunity for all and so much more. this is not just a work of governments. the work is for the work of our people. sharing their innovation and insights, joining together to amplify our collective impact. today, we are launching a futures forum between our two countries, which will bring together top experts across business, academia, civil society and more. collaborate as we shape our shared future. madame chancellor, i know the partnership between germany and the united states will continue to grow stronger on the foundation you help to build. on a personal note, i must tell you i will miss seeing you at our summits. i truly will. thank you for making the journey, for a productive meeting today and for your
friendship. >> germany and i -- understanding in to address this matter -- understanding i need to address this matter. the day is already drawing to a close. a day that is characterized by fear, by despair, by suffering and hundreds of thousands of people all of a sudden were faced with catastrophe. there houses were literally death traps. small rivers turned into flooded, devastating rivers. i must say my empathy and my heart goes out to all of those
who in those catastrophes lost their loved ones or who are still worrying about the fate of people still missing. i include belgium, luxembourg and the netherlands who have also suffered from flooding. the first responders are doing their utmost to help people. i am very much feeling with those who suffered. i know millions of people in germany feel the same. the ministers responsible here, i talked to them. i would like to send a message to the people we will not leave them alone with their suffering. we are trying our utmost to help them in our distress. mr. president, thank you for the invitation. thank you for making it possible to talk to you.
it is my first visit since 2019 and i am so happy about the change. we have seen again today that we are not only partners and allies but we are very close friends. thank you for the very friendly exchange we had this afternoon. we all share the same values. we all share the same determination to tackle the challenges of our time. i am deeply convinced that simply committing to these values is not sufficient. we are living at a crucial moment in time where we are facing new challenges and these challenges need to be translated into practical policy. i am grateful we have this opportunity to work on foundations and we lay down those foundations in the washington declaration and also how we see the road ahead and measures and i think the future
for them will deal with those issues -- future forum will deal with those issues. society will discuss together what solutions they think are appropriate and such structures are very important. a very large degree of common ground has come out of talks. we are convinced those of us overcoming this pandemic is only possible if as many people as possible are vaccinated in our countries. we have to also support the rest the world with vaccines. we worked together with covax and i am grateful to the united states and under your leadership, the u.s. has committed itself clearly and unequivocally to lead on climate . in support of the wto. germany and the united states have agreed to provide vaccine doses to poor countries.
we worked within covax. we talked about the challenge of climate change. i am very happy the united states are now back again with us in the paris climate agreement. that provides us with a totally different basis and order to work among the parties. in a much better and more efficient way for climate. we see countries affected by flooding, wildfires and by storms. that shows there is a dramatic increase in such unusual weather phenomena and we have to contend with this, germany and the united states have formed an energy partnership. i think it is a very important message we are sending here. we want to build our future oriented technologies, green
hydrogen for example. renewables, electric mobility. we are in competition with others and we would like to be successful together in germany is looking forward to cooperating in this respect. i support the president in what he proposed as a global infrastructure project, which we agreed on at the g7 summit. next year, we will have the we talked about russia and ukraine and the conflict about nordstrom -- nordstrom -- nord stream. let me say clearly that our idea remains that ukraine remains a transit country for natural gas, that ukraine has a right to territorial sovereignty so that we become engaged and continue
to be engaged. we will be actively acting should russia not respect the right of ukraine that has as a transit country. this is not a project to replace any kind of plans. this would obviously create a lot of tension. we are talking about how we can actually make this very clear together. we also talked about other priorities in our farm policy. wherever human rights are not guaranteed, we will make our voices heard and make clear we don't agree with this. we are also for territorial integrity of all the countries of the world. we also talked about the many
facets of the corporation and competition with china. obviously, there are a lot of challenges ahead. on the nuclear agreement, we think that everything ought to be done in order to bring this to a successful conclusion. we think that is something that is also -- the ball is in the iranian camp. over many years, we served together in afghanistan. we have been able to contain terrorist dangers to a certain degree but we have not been able to build a nation as we would like it. still, i would say it has been a good partnership with the united states. there have been very good contacts between our soldiers. our soldiers greatly appreciated that. we also talked about how terrorism is on a rampage. for us in europe, this is a great challenge.
we are very grateful to the countries on the ground but also the united states for their mission to contain and push back against of these terrorists. we also have drawn up -- we have agreed on the german and american business communities. we have significant trade links. the economy ties are very important. i would like this to remain even after i have left office and at think with this considered, we have probably paved the way to make it possible to also create formats where we can exchange because the world will continue to be a place full of challenges. thank you very much for making it possible for us to tackle that together. president biden: thank you very much. we will each take two questions and i will begin by recognizing steve portnoy.
i want to congratulate you on your new role as president of the white house correspondent association. i sympathies but thank you. >> on behalf of the press corps, thank you. thank you very much. i have a couple of questions for you all. a question for the chancellor. mr. president, with respect to latin america and the development there in the last week plus, what are the conditions under which you would send american troops to haiti? when it comes to cuba, what is your current thinking on american sanctions toward cuba and the embargo and i think your press secretary said that communism is a failed ideology. i assume that is your view. i was wondering if you can give us your view on socialism. for the chancellor, the question is the president said you know the oval office as well as he does. i am wondering if you can
reflect on your exchanges with american presidents over the last 16 years and contrast the current president with his most immediate predecessor. president biden: let me start off by answering the question relative to haiti and cuba. communism is a failed system. the universally failed system. i don't see socialism as a very useful system but that is another story. with regards to whether the circumstances that would make a send military troops to haiti -- we are only sending american marines to our embassy to make sure that they are secure and
nothing is out of whack at all. the idea of sending american forces to haiti is not on the agenda at this moment. that is number one. number two, with regard to cuba. cuba is a failed state and repressing their citizens. there are a of things we would consider doing to help the people of cuba but it would require a different circumstance or guarantee that they would not be taken advantage of by the government. for example, the ability to send remittances back to cuba, we would not do that now because the fact is it is very likely the regime would confiscate those remittances or big chunks of it. with regards to the new covid problem, they have a covid
problem in cuba, i would be prepared to give significant amounts of vaccine if i was insured that an international organization would administer those vaccines and do it in a way that average citizens would have access to those vaccines. one of the things you did not ask but we are considering this, they have cut off access to internet. we are considering whether we have the technological ability to reinstate that access. i think i've answered your questions. thank you. >> allow me if i may to concede any points that a german chancellor has any interest to talk with any american president but we have always had contact and you have been able to -- i think it is very transparent.
today, it was a very friendly exchange. i am sorry, i have to call on the german questioner. >> thank you very much, madam chancellor. allow me if i may to ask a question to the madam chancellor. you said you would act actively should russia be in breach of a commitment to interrupt gas transit to the ukraine. what do you mean? would germany switch off the pipeline #what sort of legal grounds would you be claiming? this or president, the u.s. fought so many years against nord stream 2. there will only be a few days left until this pipeline comes into operation. why -- will you allow it to go ahead? to put it in operation or will
the people who operate the system have to contend with sanctions on the horizon? >> you know we have worked a lot, not only germany but the whole of the european commission when it comes to talking to russia, negotiation a treaty that ensures gas deliveries must be possible as well. that is what i have heard. let me be very careful in my wording. should that go ahead, we have a number of instruments at our disposal which are not necessarily on the german side but on the european side. for example, sanctions with regards to crimea. we have possibilities to react,
we are in contact with our european friends with this. at this point in time, i hope we would never have to take those decisions and you will then see what we do. >> my view on nordstrom to has been known for some time. good friends can disagree. by the time i became president, it was 90% completed. imposing sanctions did not seem to make any sense. it made more sense to work with the chancellor. finding out how she would proceed whether or not russia tried to blackmail ukraine somewhat. the chancellor and i have asked our teams to look at practical measures we can take together. whether or not your energy security or ukraine's security
is strengthened, we can base this on russian actions. we will see. we will see. miss leonard of bloomberg. >> thank you. i have two questions for you and then some for chancellor merkel as well. your administration tomorrow is issuing a business advisory for hong kong. i was wondering if you could explain why you think that is necessary and then secondly, on your build back better agenda, have you spoken to senator's mansion about the $5 trillion framework? if they demand some of those components, we be able to keep progressives on board?
>> i want is asking about whether or not you had a feeling that after the talk with president biden, better understand your viewpoint. whether you think the united states has contributed enough to vaccinate the rest of the world, what do you think? is it appropriate for children in the united states to be vaccinated while adults in other countries have no chance to get vaccinated? president biden: let me talk about the business advisory. the situation in hong kong is deteriorating.
the chinese government is not keeping its commitment. it is more of an advisory as to what may happen in hong kong. cybill is that. i am supreme the confident that everything is going to work out perfectly. i understand why the press is skeptical that i can actually get this deal done on infrastructure and human infrastructure. i have watched and listened in the press that you have declared my initiative dead several times. it is not dead. i'm still confident that we can
get a bipartisan agreement on infrastructure. i trust members of -- republican senators have made the commitments relative to how we should proceed and what would be included in the package for infrastructure and i expect they would keep their commitment. with regard to the further of issue -- for the of what is going on, reconciliation, that is the mechanism by which you have to get every single democrat to agree to proceed on matters like what i announced today. i don't know if you have any children, that is none of my business but if you are making less than $150,000, you're going to get a significant stipend. if you have a child under the
age of seven years old, you're going to get in your bank account today a payment of $3600 for that child divided by 12 every month just like a social security check. it is expected to reduce child poverty by over 40%. it could be a significant game changer. we have mechanisms to pay for both of these mechanisms and there may be some last-minute discussion as to what mechanisms are used to pay for each of these items. whether it is an infrastructure package or human infrastructure package. i believe we will get it done. thank you.
>> we talked about china and there is a lot of common understanding that china in many areas is our competitor. that trade with china needs to rest on the assumption that we have a level playing field so that we all play by the same rules and same standards. that was incidentally the driving force behind the eu china agreement on trade. that they abide by the core labor laws. we are convinced of hours being needed -- that need to be 10 logical leaders in our areas. for example, we will cooperate in many state-of-the-art technologies, for example, chips. i think that -- and the president lost is fundamental in this respect. we want to trade to get that at
the time of digitalization where security issues loom very large. we also have an exchange about this. we should talk about this and talk about norms and standards that govern the internet, whether we can agree on common laws. with china, we should coordinate our efforts. we do that in the european union and we should do that in the united states. we have areas where american companies could be with european companies. we have to accept that. basically, the rules as to how we deal with china onto rest -- should rest and do rest on our shared values. we are obviously of the pandemic that -- of the opinion that we can only master the pandemic --
if we can get each one of our people in our country's vaccinated. this is why we invested a lot of money in covax. that is why we insisted that countries increase production of vaccines. we are trying to help africans so they can have their own production sites. we are going to do this but there is an imbalance. i agree. we are putting our all into that and we are also overcoming that imbalance. i am sorry, i called on this newspaper. >> for each of you. mr. president, my first question touches an issue that varies a lot of people in the u.s. and
germany. why are there travel bans for people coming from germany and other states of the european union while people of turkey, the number of new cases are sometimes as high and they can come, you have repeatedly said that you're following scientific data. what is the main argument for not listing the travel ban and chancellor merkel -- >> you talk to companies here. some have threatened to shift business away from the united states, have you had success? >> the chancellor brought the subject up.
i will be able to answer that question in the next several days. >> i did raise the issue, yes. i got the same answer the president gave you just now. the covid team is evaluating the matter. we had an exchange in both areas. the delta variant actually being on the increase, that is a new challenge to both of us and obviously before such a decision, one has to reflect and it has to be a sustainable decision. it is not sensible to have to take it back. i have every confidence in the american covid team. president biden: if we don't
leave now, we are going to miss dinner. we have a dinner with a number of folks very shortly. thank you for your questions, thank you. >> the president of the united states and the german chancellor, angela merkel meeting at the white house, a state dinner is to follow. we are going to read -- rejoin bloomberg technology already in progress. >> let's talk about where the money goes. you are obviously looking for companies that are -- that have a chance against the giants of today. where are those opportunities? >> if you look at the 10 largest companies today versus the ones
10 or 15 years ago, you will seek a big difference. they are seen as leaders. there is a lot of turnover in technology when it comes to leadership. cycles are fast enough that there will be a company that disrupts google and facebook and amazon. it is just a matter of where they come from and big companies are not likely to disrupt themselves. on the technology side, i am always looking for the entrepreneur's that are -- they are using their brains and technology as a lever to improve where we stand, whether it is from a health care perspective or technological perspective. wrinkly, we are in -- i'm going to paraphrase david sachs. we are in a race between the exhilaration of technological advancement in the world and the deterioration of our political and social systems.
i have not just faith but a deep belief that technology can help us to address those problems but it does not look great sometimes. i think we need to celebrate our pace of investment and some of these areas sometimes. emily: whenever you come on the show, we always know it will be a provocative conversation. thank you for your view of the world and how you are turning that into investments. coming up, another tech company calls for the ftc chair to be recused from antitrust case leveled against it. we will find out why, next. as we got to break, jack dorsey has taken to twitter to help developers build on bitcoin.
>> i love capitalism but i always believe that you need to put some guards around it when it comes to ensuring capitalism works. emily: senator amy klobuchar talking to us about the need to ensure a level playing field in the world of technology. that is part of my conversation with her for our special show redlines. we take a deep dive into big tech. we also look at some of the big players including the new ftc chair. facebook called for her to be recused from participant in decisions about the agency cost monopoly lawsuit against the social network given their
concerns of her bias. amazon previously made a similar request. why are these companies so concerned? at 32 years old, lena con took the -- lena khan took control of the ftc. she has been critical of big tech. she served as an anti--- she served as a law and antitrust professor. all eyes are on how she puts her views on big tech's monopolistic practices to work. emily: you can catch up online.
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