Skip to main content

tv   Bloomberg Technology  Bloomberg  November 2, 2021 5:00pm-6:00pm EDT

5:00 pm
announcer: from the heart of where innovation, money and power collide. in silicon valley and beyond, this is bloomberg technology with emily chang. [] standby
5:01 pm
emily: it's always day one. a sneak peek of my upcoming bloomberg studio 1.0 sit down later this hour. and, meta-platforms. the company formally known as facebook will shutdown the use of facial recognition technology on the facebook network. this is the same tech that alerts users when photos they are in are uploaded, enabling them to tie their selves. does it signal a new stance for the company on privacy? we will discuss. all that in a moment. let's get a look at the markets. the relentless rally of stocks pushing benchmarks to the all-time high with investors bracing for a key decision from the fed. our ed ludlow is joining us now with more. what will detect play today? >> tech is the better performing
5:02 pm
group. i am focusing on the nasdaq 100. up for a seventh consecutive day, matching the gains we saw in june. but the strength wasn't universal. there were pockets and tech that did suffer on tuesday. the plot index down by around 1%. the biggest drop in around 10 days. we know there is a big federal reserve decision coming on wednesday, regardless of what the fed says or does. there's deception in the markets that rates will stay lower for longer and that will be good for stocks. u.s. 10 year yield a softer buy a couple of basis points. bitcoin is fluttering around $53,000 at the moment. it had a strong day tuesday at its highest level in two weeks. emily, you are in seattle, it has been bonkers today. bonkers in the world of electric vehicles and car rental companies. started off with tesla. tesla is down 3%. elon musk tweeting there is no
5:03 pm
contract signed with hertz. hertz issuing a statement to bloomberg saying, we are already taking delivery. the stock dropping, then rebounding, closing up 2.6 percent. you are not even listening to me speak because avis is closing up 108%. one point higher by 218 percent following earnings. ,'s from the cfo about their future and electric vehicles, and then being on the platform. a lot to take in. we will talk about it later in the show. specific stock movers in the tech space, starting with meta-. the company form or not -- formally known as facebook. the company announcing it won't use facial recognition on the platform when it comes to photos and videos. netflix up by half a percent. it's launching into video games and new titles. the story of bloomberg roque
5:04 pm
earlier. microsoft, one of the better performing stocks, up, giving its version of the metaverse, and you will deal with that right now. emily. emily: thanks for holding down the fort in san francisco. the metaverse -- if you are worried the metaverse will be all fun and games, it won't, microsoft's version will have powerpoint and excel. the company introduced more than 90 new services and updates at the core of the new announcements, a commitment to exploring breakthrough ways of connecting people, companies, and ideas. i sat down with microsoft's ceo and a exclusive interview to talk about his own visit to the metaverse and how it could change the future of work. >> whenever i think about the metaverse, it comes down to bringing the real world people, places and things to the digital world. for us, in fact, in this is happening both in the consumer space, and in the commercial space.
5:05 pm
seven years ago was when we launched this. we talked about the gaming applications in the enterprise applications of a. in this pandemic has made the commercial use cases much more mainstream, even though the consumer feels like science fiction. i was able to go with it, the nhs hospital in the u.k. and do a virtual visit of the cold war. i was able to go to the toyota manufacturing plant into a remote site, and even the space station. i think the ability to be able to have the malleability of digital, really help brings things together. the real world and the digital world merge is what's happening. the two announcements we are making speak to it. it brings the metaverse capability to a hospital, to
5:06 pm
retail or manufacturing line, and then we are bringing mesh meetings to teams. these are two great real examples of what one can do in the metaverse today. emily: has your avatar join teams and meetings, and what's that like? fx we will have the avatars. we have had it in xbox. i have it with my gang tag and xbox. it's going to be the same avatar that i can now use with the microsoft account or the directory, and join a meeting. the thing about avatars is, if you think about you have your real presence in video today, you will also have your holographic presence, and the avatars are in the middle. i think there is a place for it. it's all about creating more presence, more human connection, giving all the options for people to be able to participate in the communities they are most interested in. emily: i know you are focused on business, but you have xbox.
5:07 pm
shouldn't we expect this to expand into xbox, gaming, entertainment and consumers more broadly? >> the way we think about it, we are a platform company. we always build the core intrinsic's first, then we build it into our own first party application. you can expect us to do things and gaming. you can think about, if you take gaming as -- halo as a game, it is a metaverse. in some sense it's 2d, and the question is, can you take that to a full 3d world? more importantly, to your point, we will exercise this even in the enterprise space. so that it's mesh meetings and teams or the dynamic connected spaces. the thing for me to get right, get all the intrinsic's. whether it's the mesh platforms or the digital twins that people
5:08 pm
are creating of factories and hospitals so that they can simulate and predict all of these intrinsic's that will be ready and what we build into just any other platform service. emily: you are working with a number of partners, including facebook, which just unveiled its version of the metaverse. what do you think of their take? what do you think of their approach? satya: we love the fact that there is so much innovation going in. whether from facebook or others who will enter the space, i hope that this is the next big thing that happens after the mobile internet. we will make sure, for example, all space vr runs as the most popular metaverse applications on oculus. we would like to continue that our best obligations and best platform work mesh applications. we don't want anybody who builds using mesh -- we want to make sure they can build and that
5:09 pm
will be our role. emily: given how much facebook has struggled with hate, misinformation, violence and a loss of public trespass what kind of accountability do you want to see for billions of people, including the metaverse, potentially children? >> to me, i can talk about what we are doing, whether it is the communities on xbox or linkedin, or any other place, or minecraft. one of the things that we have to really make sure is it's in the product making ethan's. we build in the community safety in context to why we are building what we are building. in gaming, is the joy of gaming. any communication and community behavior that gets in the way of joy of gaming, we have to exercise the editorial context. same thing with link in. linked in is about helping
5:10 pm
people find economic opportunity. that's what the platform should seek to. same with any property. i think that's what we are all try to make sure, while we build in through privacy, whether child safety, whether misinformation, or the decency and humanity that is required for proper discourse that allows us to have a product, and a platform that thrives going forward. emily: how do you keep this technology feeling comfortable rather than creepy? and how much time do you imagine -- how much of our days what we want to, and will spend in the metaverse? --we'll spend in the metaverse? satya: i think we are in the early days. there is nothing creepy about visiting a covid ward remotely for a doctor to be able to help
5:11 pm
their patients, or to be able to do remote assistance in a manufacturing line in a time of covid crisis when the manufacturing line needs to be fixed by an engineer working from home. i think what we will do is really use these technologies as just the next shift for an increasingly digitized world. but we will use it only when it matches our expectations of why the technology benefits us. and we won't do anything that we feel is just not the way we want to show up. whether it's in our consumer life or our commercial life. emily: how big and dollar terms will this be for microsoft business? satya: we have approached these platform shifts, whether it's the cloud, or ai. to me, all of these things are absolute secular shifts. everything. for me, teams of the future will
5:12 pm
include metaverse capabilities. dynamics of the future will include metaverse capabilities. popular that form services will hopefully be these metaverse platform services. it's like it will come gradually in the first, and then it will happen all of a sudden. that's why trying to predict cans for platform shift is the hardest thing for us to do. but at the same time, i think really knowing that these things are not just going to happen, or they will happen more gradually in this way, and that's what we will stay focused on. emily: when will we see microsoft's metaverse enabling businesses, retailers, manufacturers connect -- to connect with customers? satya: the most exciting thing is to announce these things at our conference where dynamic 365 connected spaces is available for retailers to take any space of theirs or for manufacturers to have a digital choice.
5:13 pm
in these mesh meetings that coming to teams is a place where anybody can join. in fact, they will talk about how they are building what they call the end flaw on teams mesh meetings. we are very excited about some of the things today. emily: i've got to ask you about the supply chain. we are heading into the holidays. you have xbox and visibility into the supply chain more broadly. challenges are you seeing? how bad is it? satya: a lot of that is, in a world of constraint, whether it's labor shortages or supply chain constraints, the one thing we are seeing is increasing use of digital tech. if you think about it, digital technology can ask as a deflationary force in an inflationary economy. one of the announcements at our conference is something calls -- called teams connect. it allows people to connect across businesses.
5:14 pm
if you think about supply chain, one of the fundamental issues as visibility, not just to suppliers, but your suppliers supplier. the thing that you have is spreadsheets and documents flooring between businesses. but what we want to do is enable the next generation of collaboration between businesses you think things like -- using things like teams connect. i think it will be with us for a while, but any individual company can deal with them by making sure they are able to collaborate better in being able to sense demand and supply. i think that will become the new currency. any company or industry that does a better job to connect the two sides is going to recover faster. emily: our exclusive interview with microsoft ceo, satya nad ella. amazon is looking to add office space in the new york area. they are close to a deal for
5:15 pm
roughly 400 thousand square feet of space on the jersey city waterfront. amazon is said to be targeting a building called harborside one. amazon has been expanding in new york despite the collapse of its plan to build a second headquarters in queen -- in queens in 2019. we will speak with the ceo about the future of cloud networking after strong third-quarter earnings, and spite of shortage. we are joined next. this is bloomberg. ♪
5:16 pm
5:17 pm
emily: strong third-quarter earnings for arista network.
5:18 pm
with the move to remote work in the digitization of work, the cloud networking equipment maker has a bullish forecast for next year. it connects some of the biggest names in tech from microsoft to facebook, google, amazon and netflix. joining me now is the ceo. good to have you with us.
5:19 pm
5:20 pm
5:21 pm
5:22 pm
5:23 pm
5:24 pm
5:25 pm
5:26 pm
ily: a few other stories we continue to watch. shares of zillow following -- following the most since march. the company plans to offload 7000 homes. bank of america calling this a clear negative. zillow is trying to recover
5:27 pm
after buying too many houses initially. now, many will be listed for less than the company paid. coming up, an exclusive interview with adam so lipsky, half a year into his job with amazon. how they got an advantage over microsoft and google and intends to keep the head start, next. this is bloomberg. ♪
5:28 pm
5:29 pm
5:30 pm
emily: welcome back to bloomberg technology. i'm emily in seattle. earlier this year, a historic changing of the guard took place in this town. jeff bezos stepped down as amazon ceo, andy jassy stepped up and adam selipsky became the new ceo of amazon web services.
5:31 pm
his history stretches back to the early days before it officially debuted in 2006 and became the world's first market leader cloud computing. i sat down with him for bloomberg studio 1.0 to talk about what it was like getting the call to join a ws back when it was in stealth mode. >> it was very secret. the company did not want to talk too much about it. we had to talk a certain amount about it. so the call i got when something like, we have this initiative to turn the guts of amazon inside out and expose it to other people. it sounded intriguing though i did not understand what it was about. i started talking to andy and the other senior leaders, and eventually to jeff. i would have to say that by the time i took the job, i mostly understand what they are talking about and it sounds like a good idea and i'm in.
5:32 pm
but i also was like, we just have to see how it goes in amazon is a big place. and so, i think we got a lot of intent to succeed, and that's the thing that impressed me, amazon really had the desire, intent and believe that this could be a good business. emily: you are there, aws comes out of stealth mode and is the first to market with a cloud infrastructure service in 2006. how important was that, and do you think aws still has an advantage today because of that? adam: i think the time to market advantage that we had, which was probably five to seven years, head start before companies other started -- started to take this seriously, frankly, it was one of the biggest things that happened to us in the early years. at the beginning, a lot of people did not get it. i we gassed a lot, what is this have to do with selling books?
5:33 pm
i had a slide with a pile of books in a? next to it and the answer was, it has nothing to do with selling books, with the technology, which enables us to sell books, being global and at a massive scale, secure and low because, all of that technology has everything to do with offering these services externally. w=cthat was really the promise d reason why we built aws. so, at the beginning, all of the old guard technology companies, first they said, what is the cloud, and if there were a cloud, why would amazon be involved with it? and they said it's fine for small companies, no big company would use it and big companies would use it but not important work loads, and big companies are using it and we better get into a. by the time all of that happen, five to seven years had gone by. we had a pretty deep and pretty
5:34 pm
rod portfolio services. the broadest set of deployed customers in every industry, and really, just a really gratifying list of reference to customers. emily: aws is in a scrappy start up anymore and you do have big rivals, even though aws has microsoft and google. how do you make sure that being big doesn't slow you down? adam: we are currently the leader, depending on which third-party you look at, we are probably a little bit more than twice as big as the two. it's really important to continue to act as if we are -- and not to start to act like an incumbent. and i would like to talk about managing the business. we want senior leaders to manage product and customers. i think as we get bigger and put
5:35 pm
more and more lawyers into the company any start managing math. you start managing ratios and percentages. and i think it's a real disease if you stray away and focusing on the products you are building and in a deeporné way what your customers are telling you. you start organizing their culture and what we choose to focus on and making sure that everyone is thinking about one or both of those things. if you keep the most senior leaders engaged at that level, then all of a sudden you have maintained the urgency and keep acting like an insurgent. we are way too early into the cloud journey to slowdown. our customers need us to go fast and have all sorts of things banging on the door for us to do. we have to feel that urgency every day. emily: so keep acting like an insurgent. adam: structure yourself and build a company that allows you. it's easy to say it but it's
5:36 pm
much harder to put in place the mechanisms that enable you to do so, and we focus on those my -- mechanisms. emily: adam selipsky, you can stay tuned for the whole conversation on bloomberg studio 1.0. deal or no deal? a 218% stock jump. it haswlz and rental cars and we will unpack it all, next. as we had to break, let's take a look at lift shares. up in late trading after reporting third-quarter revenue. 73% higher. saying it's boosted by demand for improving covid-19 conditions. this is bloomberg. ♪
5:37 pm
5:38 pm
5:39 pm
emily: shares of tesla dropped after a tweet from, you guessed it, elon musk. he claimed no contract had been signed yet after hertz announced it secured a deal for 100,000 teslas. hertz told bloomberg after the tweet to the company had already started to receive cars for the tesla. in the biggest rival surged as much as 218% today. dare to unravel it all, ed ludlow. deal or no deal? was there a deal or not? >> elon musk's tweet was specific, and he was trying to get across that the deal with hertz, that they have announced formally, does not give preferential treatment in terms of pricing for the model 3.
5:40 pm
it does not give them any special volume discount. if you go to now and try to order a model 3 or model why, there is a big weight time. tesla supply constraint, that's why they were so desperate to bring the factory online people waiting, demand is not a problem for this company. emily: what is elon trying to get across? >> it's very hard to know. i think the issue with elon musk is he communicate so often with retail investors. he communicates with tesla owners. the tesla owner has been a big part of the story for tesla's growth, they don't spend on direct advertising. there are a lot of people who tweeted in response to the deal when bloomberg broke the story initially, hold on, i have been waiting three months for my car. why is hertz getting wind ahead of me? it's a significant deal.
5:41 pm
it's strange to think elon would push back against it because it's the one thing tesla has not had. it big fleet deal. emily: speaking of another major rental operator, avis shares are up more than 200%. what's driving that? bikes i have no idea, emily. it has been incredible on tuesday. one of the things is avis has not been a stock we have seen mentioned in the mean trade. but if you went on wall street bet, you would see the name mentioned highly. it comes back to electric vehicles. during the earnings call, avis did beat on the top and bottom line. you would not expect to see the share price jumped 218%, that's insane. but what they did talk about was that they will buy electric vehicles for their car rental fleet, but they kind of threes -- through some shade at hertz saying, we are not quite ready. once we have executed, you will hear a plan. that got people talking in that stock surge is incredible.
5:42 pm
emily: thank you for trying to unravel the musk mystery of the day. our ed ludlow. meantime, meta-platform, parent company facebook, is closing down its facial recognition function. this comes after safety and privacy concerns continue to pile up on the social media giant. let's see if this will help with their reputation. here to discuss is perk wrangling. this is the technology that would enable or alert you if a photo was uploaded. they could decide whether or not to attack themselves. facebook has been backing away from the future over the last couple of years. what's actually happening now? >> they are going to shut down their entire facial recognition software program here. so, as you pointed out, this was really big, especially in the early days of facebook, you would upload a photo, tag other people in it, they would be alerted.
5:43 pm
they would probably want to share it themselves or comment on it. it's a great way for facebook to create engagement. it became a way for you to understand what are people uploading about me. did your friend upload this photo from you at the bar, you want to know about that. facebook will give you a heads up. they have not walked away from this the past couple of years because it has privacy concerns and facebook is not a company that has a great privacy reputation. i think it's a big deal they are moving away from this altogether, but it's not totally shocking that they would want to move in this direction. that's the way the industry is moving. emily: they also called out others in the industry in reference to the technology being widely used in other ways. certainly, other big tech companies have a history with this technology. does this signal facebook or meta-trying to convey a new samsung privacy as part of a new
5:44 pm
era for the company with a new name going forward, or is this because of a fundamental belief? >> i do think there is some element to this that has to be about this new company, this new meta--- meta-platforms. and here's how we are taking privacy seriously. you mentioned other companies, amazon, google, microsoft. amazon was selling their technology to law enforcement, which created issues. they paused that a few years ago. i think this is a way for facebook -- meta-, to put pressure on others in the industry, probably try to get ahead of potential regulation. we have seen lawmakers in the usa, we need laws, we need rules around how this technology works. this is facebook getting out of the game on the earlier side so that when there are these laws, when there are rules that come about, they are not necessarily reacting in the same ways their
5:45 pm
competitors will have to. emily: the company says they will delete one billion facial templates. how can we be sure that that information will actually be deleted? >> it's a great question and i tweeted about this story, and all the replies were essentially, ok, sure thing, facebook. it goes to show you how little faith there is that the company that will make a big public announcement like this will follow through. we will have to expect them to essentially open this up and maybe let someone come in audit that. but you are putting a lot of trust in facebook. they are saying they will continue to build this type of technology, so while they get rid of the templates, they aren't getting rid of the technology altogether, which might give them wiggle room. at the same time, it should be a terrible thing for facebook to do to say, we are getting rid of this, and then not do it. i would hope this is not an issue we have to cross, but the
5:46 pm
fact that people think it might be tells you a lot about what they think of facebook. emily: you've got so many facebook's -- facebook meta-sources. i'm curious with employees, what the transition has been like for them and what do they think of this big evolution? >> i think there are a lot of people who saw this coming from a product standpoint. mark zuckerberg has been talking about the metaverse for a long time. it's clear that this is a priority for them. in terms of the direction facebook is going, that makes sense to people. i think the branding itself is still a little bit of a head scratcher. you think about working at a company for 10, 15 years, and suddenly it's a totally new branded thing, yet your flagship product is still called facebook. i think this will take some getting used to, but again, i
5:47 pm
think the vision that facebook, or now meta-, is trying to portray is something we heard from mark for a while now. that is probably less surprising than the branding part itself. emily: i wonder if at some point the flat should -- flagship product isn't facebook. since meta-made this big announcement, you have seen nvidia in microsoft today in announcing their view of the metaverse. this is in something other companies will let facebook own. epic games as well. how much competition will there be from meta-to own the metaverse? >> a ton. what's interesting is, in a weird way, the metaverse will only work if these companies actually buy into the same idea. if everyone is creating their own version, that's not a metaverse. facebook is saying that's just a
5:48 pm
bunch of universes. so while everyone is competing for this, they still have to work together for this to be an experience where you can jump from facebook to roadblocks to twitter, to whatever. and i'm still not convinced that the companies are necessarily going to work together that way. but that is ultimately the biggest question. facebook has talked about the metaverse all it wants, but the -- but it becomes a digital world for only facebook. has to be something where you jump from facebook to other experiences and it will require other companies to play ball. emily's kurt wagner, thank you for your reporting. t-mobile posted its third quarter results. another surgeon subscribers. i am joined live by the ceo. take a look at activision blizzard tumbling. they are facing lawsuit over sex discrimination and harassment. now delaying two of its most
5:49 pm
anticipated games and giving a fourth-quarter forecast that fell short of expectations. shares now down more than 10% after hours. this is bloomberg. ♪
5:50 pm
5:51 pm
>> after feeling only moderate effects from the global chip shortage and staying above the fray, the chip shortage is now pressed hard into apple. 9ydurinr earningson cook said had it not been for the global chip shortage, apple would've generated a whopping additional $6 billion in revenue. that's an additional half of income it gets from the macro ipad.
5:52 pm
the issues come for a ceo in a company that has touted itself as a group of supply chain services. in their defense, apple says there is not any fundamental flaw in the supply chain strategy and it's doing everything it can in its power to mitigate the problem. still, it has not been good enough. apple's online store and retail stores are dried up of new iphones, ipads, macbook roads, apple watches and other devices. apple's online retail store is quoting shipping time frames well into december for the popular devices. unfortunately, the problem will continue. cook said apple's product quarter will be a high time -- all-time record. we will see a negative revenue hit in q1 from the chip shortage. i mark gurman. -- i'm mark gurman. emily: don't forget to sign up for mark's power on newsletter. taking place in glasgow, a lot
5:53 pm
of expectations about what finance can do to support the green transition. my colleague spoke with bank of america's ceo, brian moynihan. >> this is the transition we have to make as a consumer, company, everything you do, everything goes around. there is a lot of pressure on banks because our clients and investors are demanding this. the politicians of the worlds are demanding this. if you think about it in the context of the sdg's, in 2015, all the countries we want this to happen, and now we have to implement it. >> when you look at what wall street's en banc in general can do. could you stop lending to businesses that pollute too much? >> to help everybody make a transition, all clients have to make a transition. some extract minerals and some extract fossil fuels. our job as a financial institution is to assess them on a risk basis. there's my plan, here's where i will go.
5:54 pm
it's easy for services to be net zero, but it's hard. we have to help them make that transition. they need capital to deploy. their plans, declarations, many are saying we will do this by this year and then we can be part of the measurement system because, as we underwrite them, one of the risks is do they have 2pv?náv?fq%that meets the stands q$#?náv?fq%that meets the stands if they don't, they will have a problem down the road. >> what is the biggest $80 billion in financing and it's a business -- >> $80 billion in financing and it's a the difference between our great and pay rate is for wind, solar and loan moderate income housing. there is a lot of opportunities to make money doing this. and then the concessional capital we do, and the charitable work in between. the thing that's hard is this
5:55 pm
transition happens when we all work together. francine: are you disappointed you don't have more commitment? brian: simple mandates, there's a lot of things to do. the private sector is pushing them before they were pushing the private sector. you had to disclose in its informal now it's worth saying we will do that, but we need you to enable. take the political risk away and duration risk and you can unlock all this capital. emily: much more coming from cop 26 throughout the week on bloomberg television. francine lacqua with brian moynihan. that does it for this edition of "bloomberg technology" from seattle. i will be back in san francisco tomorrow. the company goes public. plus, the conversation with lifts president with the
5:56 pm
company's solid third quarter results. you don't want to miss that. this is bloomberg. ♪
5:57 pm
5:58 pm
so many people are overweight now, and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat all while controlling stress and emotional eating. at last, a diet pill that actually works. go to to get yours.
5:59 pm
6:00 pm
haidi: welcome to their break australia. -- daybreak australia had. shery: the relentless rally pushed benchmarks to new high. haidi: investors look ahead to the fed expected to confirm


info Stream Only

Uploaded by TV Archive on