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tv   Bloomberg Technology  Bloomberg  November 11, 2021 5:00pm-6:01pm EST

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>> from the heart of where innovation, power, and money collide, silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: debates continue to rev up.
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he planned to sell them long before his twitter pole. we will talk about what that means. humble shares dropping after a drop in the subscribers at its european dating app. we will talk about the future of dated and a post-covid world. the record-breaking shopping festival, singles' day, raking in sales. how it impacted the chinese tech giant after a year of increased scrutiny from beijing. we will have a look at that again in a moment. but first, tesla fluctuating on the back of share sales. sonali basak has the full picture. sonali: you have the s&p jumping back a little higher. not a big one but it was after two days of decline and guess what, more than that the nasdaq is rising higher with the russell 2000 rising even higher than that.
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you have a pretty broad-based rise here on the day with volatility that hasn't been enough to deter some of the risk-taking we have seen. our crypto index is a bit lower today but recently it had hit a record high and when we look at the russell 2000 like i was talking about, we have a broad-based rally here and finally hot stocks in small caps with people worried about valuation amongst different companies a little bit, some of them moving above the moving average. taking a look as well at the tech subsectors here, we do have, as well as a rally in many of those sectors, it's not as broad-based as you were seeing in the russell 2000 that i was talking about, where you had the stock at 4.9% and the biotech index, down on the day.
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the china index, up 5% over there. electric vehicle makers, up 1.6% , though that is nothing when you look at something like griffey and. emily: all right, thank you so much for the roundup. elon musk sparking heated debate over the weekend when he asked his twitter followers tesla stakes and wednesday he unloads $5 billion worth of tesla but it ed, the forms come in and you are digging through it trying to do the math. what exactly did he sell and why? >> the headline is 4.5 million shares over the course of three days, but they are not all the same. $1 billion worth were tied to tax obligations that he had on options. 2012 he was granted options as a part of his compensation, they
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expired august and he exercised it and he owed a tax on it. so, what did he do? he sold enough shares to meet the tax obligations. that leaves 3.9 million shares and $4 billion in other stocks in there was nothing in the filings about whether he planned it in september. nothing about whether it was tied to tax obligations. he just sold the remainder of stocks. caroline: so, what does the twitter -- emily: so, is the twitter pole misleading? >> when he tweeted that, he had arranged it based on selling stocks to meet tax obligations on the 14th of september. that's months. we have no idea about the remainder. $4 billion worth of stocks on tuesday and wednesday at a really elevated price with shares that had an incredible run up. we don't know. emily: and of course he could
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still sell. >> right. if you invest in tesla, how often does he tweeted in ways that move the stock? we have great examples of that, right? funding secured, 2018. the shares jumped 11%, then he's then reprimanded by the sec over that. recently as november 1 with the hertz chaos, bloomberg reports the deal and yeah, he tweets no contract. the stock moves. you know. emily: he also tweeted that he thinks the tesla value of the stock is too high. >> which is unusual behavior for a ceo. emily: it's also about this debate that billionaires are
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somehow avoiding taxes. is he trying to buffer his image here or does he want a real answer? >> clearly he's thinking about it. there was a pro-public a report that he didn't pay tax. he says he pays an effective rate of 53% but that he doesn't take a salary. that the only way he can play -- pay tax is through his stocks and options and he says the only way i can pay tax is to sell the stock. emily: all right, well we will keep watching his twitter, as we do. so much fun. ed, thank you. disney, trying to ramp up excitement for disney plus day, new promotions for subscribers after they had a disappointing 2 million subscriptions, a far cry from last quarter. this while netflix is expecting almost double digits next quarter thanks to original hits
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like squid game. rich, what do these new numbers tell you? are they perhaps maxed out on new subscribers? especially in the united states? >> it's just sort of sad, right? some of the world's best content and all of the ability to win if they want to win, but like many legacy media companies, they are dealing with the balance and are conflicted. do we support the legacy tv businesses? do we support the movie theater business that we have been in for years, decades, i should say? if disney wanted to have eternal's, west side story, only available on disney plus, they would have an incredible slate of content for disney plus. instead, you turn it on and the top title is the simpson's, the mickey mouse club, mo want to. honestly it's just embarrassing
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how bad the headline content is. there's nothing for anyone over the age of 10 in terms of fresh content. they keep saying it's coming, it's coming. they have an incredible array of content for adults. all of this content could be disney plus exclusive and they could have a comprehensive service that could be driving subscribers at higher prices. instead they are stuck in their silo and trying to balance all of their legacy businesses with disney plus and balancing the whole dabbling balancing, they are losing, not winning the way they could do. they have all the resources and it's disappointing as they wait and wait as opposed to use the resources at their disposal right now to accelerate growth. emily: i just noticed that you are wearing a squid game t-shirt. an original. you told me, when disney plus debuted, that it would never be
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as big as netflix. do you still believe that? >> when you have a service -- first of all, the one thing we should say is that we didn't count that they would give it away to 40 million homes in asia. when you say as big as, subscriber numbers, it's half the subscriber base but it's misleading because more than, almost one third of the subbase, they are effectively giving it away in asia as part of hot star , but revenues are a better way of thinking about your question. these things aren't even close. recent comms score data, giving you a sense of viewership, unconnected tv's in the u.s., netflix is 26%, disney plus is 4% and it has been declining. there just isn't that much to watch and that's why people are paying six dollars or less in the u.s., four dollars globally.
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it's a very low-cost service with little usage. that's the disturbing thing. they could drive it. the best way of thinking about this, coco mellon is a top 10 for preschool kids, recently acquired by blackstone. that show sits on netflix right next to squid game. squid game is obviously for adults, but preschool and adult content sit right next to each other yet disney thinks they have to have different services for each type of content. it's funny, no one is complaining. you don't see an uproar of parents saying that i can't believe squid game is sitting next to coco mellon. disney route needs to realize they need to put all the content into one place know, they have a
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management team unwilling to do what is necessary to win. emily: speaking of, you don't hold back, and i understand you haven't been able to ask a call on a disney event in years. give us a status update there. >> at least as they invite us to listen. i thought with someone else taking over i was hoping that things would change. iger didn't like us. the entire management team has turned over and i'm hopeful. i would love to have that conversation. we have lots of big ideas that we think could be helpful to disney in terms of what would make the stock go up. we have been vocal that they should be spinning off espn and abc, businesses that have no
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synergy with the rest of disney and the shareholders we talked to don't want disney owning them . these businesses are not going in the right direction. i would love to break bread with bob and his management team. we are still waiting. any time, we will be there. emily: all right, we will see if they get that message. rich, keep us posted. coming up, bumble shares stumbling but analysts are betting next quarter gets better. i will speak next to the ceo of bumble about where she sees the dating world after covid and even in the meta-verse, beyond. this is bloomberg. ♪
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emily: bumble reporting a third-quarter earning that pays uterus for the gazing -- dating app that allows them to make the first move. what is the future of post-pandemic dating for those looking for love? i'm joined by the ceo and founder of umbel. always good to have you here. the stock dropped almost 20% today and there is concern about the myths in paid subscribers and what is happening in the decline with users. what's your message to investors today? >> let's just lay the groundwork before we get into the paid user question. we are always focused on the
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fundamentals and we had an excellent q3, expecting revenues to rise year-over-year. the bumble app is doing exceptionally well. the paid users, our strategy has been to create value added experiences that our users want to pay for that adds value to their experience. in the last several quarters this was a focus on premium experiences through the second tier. this resulted in higher average revenue for paying -- per paying user, but it isn't a strategy that is focused at the moment on selling low-priced consumable offerings to everyone, thus resulting in lower subscription numbers. that said, we are very confident in the underlying business and do not have an issue. the users continue to grow at a rapid pace and we have more and more opportunities to generate
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higher numbers that will be strengthened through the new products we have on the road for 2022 in addition to our normal business practices. that is the way we are thinking about pairs. there's a bit of confusion in the market, which is par for the course. as far as the dew point, it's important to note that we implemented temporary changes that eliminated third-party payment options temporarily. without growing the number of payers. we have since reversed that, given the changes in the app store environment. emily: look, the u.s. is fairly open now, there are still covid challenges in europe. what does the future of dating look like?
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what are the trend >> they are fascinating -- trends you are seeing? >> they are fascinating. we have strong re-engagement in the u.s., strong a new user growth in markets as wide-ranging as mexico, brazil, indonesia, germany, france and so on. when you think about how bumble has been impacted by covid, it reinforces the strength of our customer base that relies on us for connection. i think it is important to take a note, take a moment to notice that the customer base is inherently different, right? it's a different market, a different offering and because of the countries we are so strong in, they have just inadvertently been impacted by covid in a more serious way. so, when you think about it more
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generally, it's a highly engaged dating app and the second most downloaded locally, just seeing slightly stronger headwinds. looking to the future as these markets reopen, what's fascinating is we remain a staple in people's dating lives. we remain the go to for creating relationships. people now have no time to sit around and wait when they want to find someone special or someone to share in the special moments. they turned to us to take control of their dating lives, especially women. and we are seeing this across the globe. emily: a few times on the call you talked about the blockchain and the meta-verse. what does that look like? is it an opportunity? >> absolutely. web three is a huge opportunity for us.
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we are a business rooted in connection and building community and as you know, we are slowly rolling out the new refreshed version of our platonic connection platform, which has already shown remarkable crossover opportunities between the dating and the platonic and also just proving the strength of the demand for platonic relationships. thinking about that, how do we turn customers into members with ownership over the product and their experience with creator channels and ways to interact in a deeper way, the pre-match experience could turn even more digital into was rolled out generally, as you saw, with video, the meta-verse is a real opportunity in the future and we expect to be the front runners when it comes to dating and building community more broadly. that is just a natural extension of who we are as a product and a brand.
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emily: last quick question, it's singles' day, a huge thing in china and i didn't realize it is becoming more popular in the united states. what do you make of that? seeing any change in the activity on the app? >> so, every day is singles' day at our company, but we will have to take a look. i will say that every single day is an opportunity for singles to unite and find what they are looking for, it's what we are here for, giving them control and power over healthy, equitable relationships. emily: all right, thanks for giving us that glimpse of the dating world of the future. good to see you. coming up, cop 26 talks come to an end in glasgow, but what's still unresolved? including crucial negotiations on international carpet mark -- carbon markets. after the break, spotify expanding to audiobooks with the
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acquisition of find a way, looking for a way to greet -- grow beyond a music app. this is bloomberg. ♪
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>> it is requiring a change in how we conduct business. there must be acceleration in the capital carbon markets. the idea is that countries are cutting and purchasing credit to represent emissions reduction
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and companies can invest in projects that help to lower the expense and other countries, too. replacing diverse energy with renewables, generating often what can be traded upon further as corporations and governments spend billions to meet their targets. more credit must change hands in the first eight months than in all of 2020. some have relied on cargo markets for quite some time, but the quality often says that there is a concern that some of them have failed to respect human rights. this paved the way for new carbon offset programs where credit will be overseen by the united nations and a well-designed market requires $1 trillion in investment in
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developed nations for low carbon innovation. but that's too lax within the governments when people want more than they should. emily: that was ava reporting on the cop 26 talks. robinhood is the target of a class action lawsuit in new york after allegedly failing to protect customers confidential information and earlier this month they announced that a hacker socially engineered a customer support employee by phone and obtained access to customer support systems and they said the data breach could have been avoided through basic security measures, authentication, and training. coming up, a look at third-quarter results and whether or not it's paid up to be the real -- the only retail platform to offer access to the rusty gregory -- the rivian ipo.
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this is bloomberg. ♪
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emily: get more on the markets with ed ludlow. you were all over rivian's ipo. ed: you know the expression a picture can tell a thousand words. it is way above the listing price.
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now, we are turning to questions about valuation. it has a value above $100 billion. this company has delivered fewer than 200 pickups and that's to employees. this is all the intense debate going on on twitter among wall street analysts among investors sitting on the sideline asking is this a company we should be buying into? is is a growth company. this is a bet on its future. let's see where it sits among the pantheon of u.s. ipos. you've covered these amazing companies over the years. facebook was huge ipo, yet look how close we are in terms of the money raised. his raising $12 billion for a
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company with hardly any vehicles going to help it justify that valuation in the long run? that's the debate. do you number tesla? when will tesla record profit? how long did we ask a question? rivian, an astonishing two days of trading. emily: thank you for that roundup. strong third-quarter results for sophia. -- sofi. how did they manage and what's next for them? let's ask their ceo. i want to start with rivian. how big was demand? emily:
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>> investors -- we had about $300 million of demand. we were able to deliver at least one share to everyone that confirmed the order and had funding. obviously, we were well oversubscribed like the west of the deal. -- the rest of the deal. emily: well oversubscribed. can you tell us how oversubscribed? >> the demand was very strong. well in excess of the supply we had. i can't get into details beyond that. emily: do you wish you could have gotten more? how much did it payoff for sophia? -- sofi? >> we wanted to deliver a value proposition for our members.
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having different selection within investing is important. where the only place that offers single stocks without commission, fractional shares, etf's, cryptocurrency, and ipo's. that's another piece of differentiated selection. yes we clearly had a demand for more supply. we want to continue to bring the best and most unique selection to our members. emily: we saw coinbase and robinhood disappointing results. your stock is soaring on the back of your report. what do you think is driving that optimism? >> a few things stick out. because we are building a one-stop shop for financial services products on your device. we benefit a low rate environment and a high rate environment. we also have benefits -- businesses that benefit from stay-at-home. we have been able to navigate.
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we had a record q2. the diversity that we delivered to our consumers translated into more diverse revenue base and there are customers that are missing because they are only in brokerage or lending or categories benefited from stay-at-home. because we are a one-stop shop, we have the breadth of businesses and three that can offset each other. continuity and consistency is really important and we are proud of the fact we delivered q3 and we still see strong women into q4 and guidance for accelerating revenue growth year-over-year. emily: talk about the future of crypto on the platform. how many more do you want to add and can you share what you're considering? >> we started the year with five
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different coins on the platform. we have expanded to over 30. we have a very specific criteria of what qualifies to be an asset under the platform. we are also looking other things beyond the assets that i mentioned. we want to give main street investors access to investing vehicles that are similar to high net wealth visuals. the ability to deliver an ipo at ipo prices is quite unique. emily: always good to have you here. i know you are a veteran, thank you for your service and sharing time with us today. other news we are following, uber is raising its base pairs in london to attract more drivers. customers have complained on social media about longer wait times, cancellations, and higher fares. uber says it needs about 20,000
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more drivers in london to help get service to normal. shares of beyond meat plunging the most in a year. i disappointing sales projection for the next quarter sparked concerns that their growth is starting to taper off. coming up, master class has announced a range of new offerings. we are catching up their ceo next. this is bloomberg. ♪
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emily: a california drone startup zipline will start delivering in salt lake city, utah. the drones have been transporting medical supplies to remote places since 2016. it plans to reach hundreds per day within four years of launching spring 2022. from the kitchen to the garden to the stage, masterclass has an offering just about anyone looking to develop new talents. the company benefited from shutdowns during the pandemic now hopes to keep the momentum going with a slew of new offerings. they are now working with companies. with me to discuss the big
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announcements is the masterclass ceo. you have new classes on their or are coming from bill and hillary clinton, mariah carey, amanda gorman, bill knight, ringo starr. if you could pick one class, which one do you spring for? >> bill nye. i always which -- wish i was much stronger in science. emily: you are partnering with companies like microsoft and deloitte. how much do you expect as a result? >> that has been extremely fast growing. we have seen for the past year
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as companies try to find parks and training of their teams that they just want masterclass. we in the past year have signed deals with folks like square, deloitte, and for the next five years that will become a major stream for us. emily: what has demand been like as we come out of covid? we have less time at home for personal enrichment. any concern for a slowdown? >> i am not concerned. the demand for people to want to learn and grow is just increasing. also, we are about to go into the holidays. we are a gift that is not stuck in any port, it is not delayed. i am thrilled and excited for
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the end of the year. emily: what about demand ahead of the holidays? i know that masterclass has often been up off ash popular gifting option. >> it has always been. we have a class for everyone. it is a great gift and also one that despite the slowdowns and the supply chains, it is one that you can buy and get. emily: are you thinking at all about live events or events in virtual reality or even the metaverse? is that on your radar? >> those are things we are talking about. it is not going to be something in the short term. imagine how great it could be to learn from steph curry how to shoot a basketball and use your phone to look in ar or vr to see where to place your feet.
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those are things that we are discussing, but it's not going to be in the short-term. emily: it's not inexpensive. $180 for the base subscription. you go up to 276 for something more premium. do you foresee a time when that will come down? >> the cost if you average it out per month it starts at about $15 a month which to access 150 classes from the very best in the world i think is an amazing deal. one of the things that i care a lot about is how to give people that can't afford it access to it. in the next year, we going to give access to a million people that otherwise could not afford. emily: let's look to next year. how do you see growth picking up especially as we're coming off
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our couches, going out into the world, we have so many different opportunities to do things outside again? >> that is very true. the other trend that is happening is people are thinking about changing jobs and changing things they want to do. what we provide is lots of classes in lots of new areas for them to explore and learn and gain the skills. the macro trends of people wanting to learn, people wanting to feel that they have to learn in order to get the jobs they want is going to be great for us. emily: who is at the top of your list for wishlist recruits? >> i have a long list. i would love the obamas to come teach. warren buffett would come teach, those would be my top -- in my top five. emily: we will try to get the
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message to them. great to have you back here on the show. thank you for stopping by. coming up, alibaba shopping extravaganza. a single day posting record in sales. how the competition stacks up. this is bloomberg. ♪
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emily: alibaba singles' day is the world's best shopping day. one of the biggest recent drivers of the growth has been livestreaming influencers. they can move billions of dollars worth of goods in a single broadcast. >> meet china's most popular retail influencers.
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these two have such big followings that one once sold 15,000 units of lipstick in five minutes. together, they racked up sales last year of $8.2 billion. that has made her a multimillionaire at age 36. she has a viewing of more than the game of thrones finale. that represented 10% of china's annual online retail sales of just under 10 trillion you want in 2020. astronomical growth for an industry that alibaba pioneered as a marketing tool five years ago. a survey last year found that almost 40% of all chinese
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internet users had watched e-commerce live-streamed. 28,000 companies now operate as livestream agencies that are so successful that several are said to be considering going public. all of this capital flowing into these influencer incubators has drawn increased scrutiny from beijing. in april, regulators set new rules for the types of goods sold and how they are marketed. they also cracked down on fraud with several influencers and agencies accused of selling fake products and inflating sales figures. the biggest impact could come from regulations linked to beijing's common prosperity drive. as part of the initiative to reshape society, authorities have cracked down on the culture of celebrity putting at risk one of the key pillars of the success of the industry. for now, it is business as usual but bloomberg intelligence says
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that any potential fallout can't be quantified until regulations are clarified. emily: single day posting record and it could serve as an indication of what holiday shopping looks like this season will bully. joining us for more is stephen engle. >> that's a big number. there is uncertainty this year because of the regulatory screwtape alibaba has been under. -- regulatory scrutiny that alibaba has been under. you and i have covered singles' day together. it is quite a show. taylor swift and all of the celebrity. this year, they took the high-gloss out and went more low-key.
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they didn't necessarily want to have the big electronic telethon tally of gross merchandise value racking up every second. then look jack ma is getting even more rich. they did away with that and focused more on promoting philanthropic endeavors and aid to the poor. there will be a lot of cost associated with that according to bloomberg intelligence. less goods and glamour. they toned down a little bit. no nicole kidman, daniel craig, taylor swift. it's a big shot in the arm for alibaba and customer consuming -- confidence in china. emily: talk to us about influencers and the future of
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e-commerce where it seems to be more advanced in china than other parts of the world. >> key opinion leaders are critical in chinese internet. as we just saw, selling product. it comes at a time of prosperity and the knowledge of celebrity has been knocked down a peg by some verbiage coming from authorities. it's a delicate balance. when you get a key opinion leader, celebrity selling toothpaste or lipgloss or whatever, it pushes product. not that we needed to have more incentive to buy products because look at the record number on singles' day. it adds to the sales numbers. emily: chinese tech stocks are killing it right now. didi relaunching its apps.
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what do you make of this given the scrutiny from aging -- bejing? >> there has been a confluence of headwinds. regulatory and economic due to the headwinds in the chinese economy. all coming at once. regulatory crackdowns not only with big tech, but insurance. fintech, gaming, property. at a time when xi jinping just solidified his power base. this was a highly charged political year in china and he was solidifying his grip on that power. and his control of what he thought was an out-of-control economy. monopolistic behavior on the part of alibaba, fines against them. didi is interesting as well because authorities were furious when didi ignored recommendations from authorities
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and went ahead with the ipo in june in new york and did not necessarily have the cybersecurity reviews necessary. they had their apps taken down from china and there is a new report. now that the property relaxation a little bit here and there, there is a report from reuters saying thatdidi might be getting their apps back up by the end of the year. they could be facing a fine, getting their apps back up his -- is a big reason for their sentiment being up. emily: that does it for this edition of bloomberg technology. tomorrow, we will be joined by the cfo of open-door. also the ceo of air table.
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i'm emily chang in san francisco. this is bloomberg. ♪
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paul: i'm paul allen in sydney. >> investors way inflation worries against improving sentiment toward chinese companies. alibaba is a part of that.


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