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tv   Bloomberg Technology  Bloomberg  August 30, 2021 11:00pm-12:00am EDT

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>> from the heart of where innovation, money and power collide, in silicon valley and beyond, this is "bloomberg technology" with emily chang.
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emily: i am emily chang in san francisco and this is "bloomberg technology." beijing break -- they limit the number of time children can play games online to three hours. and, surrounding the blood testing company, fara knows. --theranos. one of silicon valley's most notorious scandals. kriti gupta, tech leading the charge today. kriti: a defendant -- defensive tone in the markets. the new york faang index up 1.6 %, helping the s&p 500 and the nasdaq close at another record. the 53 record closes for the s&p 500. what did not do well is the small-cap index. the russell 2000 in the red. this is not that unusual.
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let's take a broader look at the chart here. this is a little bit of a different story. that white line small caps , outperforming year-to-date. that has flipped in the last month with the nasdaq 100 leading the way. today was no different. let's look at some of the other tech subsectors. it was a tech friendly trade. golden dragon index and semi conductors in the green. the nasdaq biotech ending in the red. that is the macro picture. let's go to ed ludlow with the micro. >> i am looking at the biggest points movers on the nasdaq 100. moderna down 3% after a report from japan that that country is investigating the vaccine after two deaths of individuals who had taken it. on the opposite end of the spectrum, apple up 3%. no real catalyst. come with me into my bloomberg terminal. that move takes apple's market cap to $2.5 trillion for the
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first time. $2.5 trillion. such a big contributor to the overall s&p 500 index. incredible. come back to me in the studio. the big story out of china. this limiting of playing video games three hours a week for children. that is going to be a problem in my house. i am not a child, but a massive gamer. we saw that play out in adrs. netease the biggest laggard down , 3%. it is not just limited to china. we saw activision blizzard down 1.6%. emily: we are going to continue to talk about that one. i want to get more on the gaming restrictions in china. investors are reacting quickly to these escalating restrictions on the country's lucrative gaming industry. here are some of the main takeaways. children will be limited to playing video games to three hours most weeks. gaming platforms like tencent can only offer gaming to
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children from 8:00 p.m. to 9:00 p.m. on fridays, weekends and public holidays. all gaming should be linked to a state anti-addiction system. companies cannot provide services without name registration. these new rules are part of a broader push by beijing to move its younger generation and future workforce toward more productive pursuits they hope. joining us now is tom giles, executive editor for coverage, and tom orlik. massive impact across the industry and china's economy. tom giles, let's start with you. dig into the details. these are very specific restrictions. only an hour a day friday through sunday. talk to us about what this means. tom g.: they are getting into the nitty-gritty of daily life for people. in this case, children. the big takeaway for me and a lot of businesses right now is less the impact on a company
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like tencent? china has already limited the number of hours a kids can be playing games. that happened in 2019. this is an extension of that. tencent has said only 3% of overall gross receipts come from this demographic. in terms of the stock impact on one specific company or some specific companies, you will not see a profound the big takeaway one. here is the extent to which china is willing to regulate and weave its way into the individual lives of its people. any sense you had china might be tapping the brakes on this, what can we do to rein in the power of big tech in the country, that is not going away. this shows it is continuing and the question is, who is next and how much more? emily: this is part of a broader agenda for president xi jinping.
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even this seems former -- far more prescriptive than some other crackdowns the chinese government has made. why is this happening? >> i think the chinese communist party are reminding themselves and the global market of an important and often overlooked fact. they are communists. communists in general are not friendly to capital. and neither are they shy about intervening in the economy and indeed as tom giles mentioned, intervening in individual choices, children's individual lives in ways at which more democratic governments would balk. the key question here as tom mentioned is not what impacts does the three hours of gaming restriction have on tencent, the question is what is the broader agenda here?
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how far will china's government, china's communist party, be willing to go in their interventions in the economy, interventions in people's lives, as they attempt to move the dial away from the investors and entrepreneurs, toward what they see as the interest of households, workers and families. emily: when it comes to games, the chinese government has referred to videogames as spiritual opium, electronic drugs. from the u.s. perspective, we are seeing this hurting u.s. game makers and it plays into what the sec has warned about china changing the rules without any warning. from a market perspective, how do we expect this to play out? will this raise the eyebrows again of the sec? tom g.: it is hard to say exactly how much jurisdiction sec can have over this. i think what this is going to do and what we have seen happening
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is global investors are questioning what their stance on the chinese market -- if you are a private investor, if you are a venture capital firm, what do you think about the risks involved in investing in china? the risk profile has increased significantly over the last several months. if you are a public investor, a hedge fund to what extent do you , want to expose yourself to the publicly traded stocks of chinese listed companies or chinese companies that are listed here or might have listed here? there is a whole questioning happening across the globe over how much risk you are willing to take on. emily: what does this mean for china's broader growth story? obviously we are long past the days of double digit gdp growth and it seems like growth is not the priority anymore. tom o.: i think if we could see inside the minds of china's
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policymakers, they might push back on two points. the first is, is this fundamentally bad for growth? is it good for growth for children to spend all their time playing video games or would it be better if they spent more time puzzling over their math books or their history books? probably more time on education is going to be good for growth in the long-term. the second important point is china's leaders are taking a big bet on the importance of the big. if a small country, a relatively small country like a mexico or a vietnam made this kind of policy move, investors would be heading for the door, companies would be heading for the door. but this is china. china on a reasonable base case will be the biggest contributor to global growth and the biggest source of profits for multinational corporations in the next decade.
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china's leaders are taking a bit -- bet that that means they can regulate in a way other countries will not be able to. emily: bloomberg's tom orlik and tom giles, something we are going to continue to follow. thank you so much. coming up, we are going to talk to the founder of ironnet cybersecurity, general keith alexander, and the former director of u.s. national security agency. his cybersecurity firm just went public via space. this is bloomberg. ♪
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emily: the cybersecurity firm ironnet recently merged with lgl
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systems. the new company trading on the new york stock exchange. joining us to discuss is retired general keith alexander, founder and co-ceo of ironnet. why spac, why now, and how does this help you achieve as a cybersecurity firm in a world where the threat is constantly and rapidly evolving? gen. alexander: great question. why did we go public at this time? we had the unique offering and collective defense with some game changing technical capabilities to the tech threats with behavioral models. we thought this was the right time. we thought the spac processing going public would accelerate growth. the public and private sector need this capability today so we are pushing it forward. my time at nsa and cyber command, this was a gap that we saw. the reason we created this
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company was to fill that gap. that is how the public and private sector could create a radar picture to see threats and attacks on our nation. emily: it is interesting you mentioned that gap. president biden just met with big tech ceos including tim cook , sundar pichai at alphabet, at microsoft, andy jassy, and at amazon to talk about cybersecurity and what the private sector can do. he talked about the lack of talent to fill some of these jobs in cybersecurity and seems to put the onus on the private sector to do more training. what do you make of that argument and that problem? gen. alexander: clearly, we need more people. this is part of the problem. when you think about the amount of information that is doubling every year, the number of devices, the number of applications, all of that is growing and doubling every year. we cannot double the number of people.
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we have to do a push on people and we have to make the technology grow and provide greater capabilities. i will give you a great case in look at 90 midsized banks. point. they each have about 10 people working in their security ops center. each of those 10 are working on that one bank. down the road is another bank with 10 people. what if we brought all those together in a collective defense? you would now have 900 people working together. it is a combination of taking that new technology and coupling it with a growing workforce. that is what we need to do both as a private and public sector. emily: how do you see the threat landscape evolving? we have seen high-profile attacks this year. colonial pipeline, jbs. the meat clients. we see cryptocurrency get involved and hackers using that to disguise their identity or disguise their trail. what does the next year in cyberattacks look like, does it
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only get worse? gen. alexander: i think it is going to continue to grow. part of the reason is everything we do is connecting to this network. 5g will increase it with a number of devices. this network is going to grow significantly. with it, there will be these gaps and vulnerabilities growing as well. we need to figure this out now and train as a nation. i do like the way the administration has put together public private partnership and working together. we absolutely need to do it. ake it a step further with our allies. when you think about this, that is the future where adversaries are going to attack us. it is easy to get there. you don't have to fly. don't have to bring an army in. you can let us in cyber. we need to be prepared for that. emily: we are in the middle of a historic moment. the united states has announced we have officially and completely pulled out of afghanistan. the last u.s. service members
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have left. we know the taliban is much more technologically savvy than they were 20 years ago. we can assume other terrorist groups are as well. from a cyber perspective, putting on your national security agency hat, what are the threats in cyberspace you worry about here? gen. alexander: first, our thoughts and prayers should go out to the people of afghanistan and to the families of those soldiers, airmen and marines killed over the last week. we should keep them in our hearts and minds. what is it i am concerned about? i think we saw destructive attacks nine years ago when iran attacked saudi aramco and threatens our financial sector. i am most concerned about those who have little to lose attacking our infrastructure with destructive attacks. to prevent that, this is where the public-private partnership has to come together.
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you're going to see china steal intellectual property. i don't think they will attack unless we get in a situation in the south china sea or taiwan. same thing with russia. i think they will be reluctant to attack. they are to steal money. ransomware and attacks on our infrastructure. those countries like iran and north korea who have little to lose and if they get pinned into a place where they want to respond as they did nine years ago, they're going to do it again. that is what we need to be ready for. it is a combination. then you have these ransomware and hackers out there to get money. they are doing what they can to go after us. that is a lot of money our nation is losing. add the intellectual property theft and ransomware costs this , is huge. we have got to put a stop to it. that is our future. that is your children my , grandchildren's future. emily: does the destabilization of afghanistan change the balance of power in cyberspace?
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gen. alexander: i think everybody has got to be concerned about that. what happens with afghanistan going back 20 plus years when you look at where it came from, what happened with our country and 9/11, we have to be concerned about it. we have to track that. it is not just a u.s. problem. the world has to come together to address this problem. i am concerned about the destabilization not only in afghanistan, but the region. what does that mean for us and how are we going to work together to prevent that from happening? that is a tough problem. emily: general keith alexander, always good to have you here on the show. ironnet cofounder and co-ceo, good to have you. as we head to break, want to take a look at video. shares down within 10% after giving a sales forecast that fell short of analyst estimates. it is fueling concern the company may have difficulty
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maintaining revenue growth. workers conduct fewer meetings remotely. tuesday, we are going to be joined by the zoom cfo to find out more about their post-pandemic growth. this is bloomberg. ♪ oomberg. ♪
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>> i am mark gurman. on this week's episode of power on, i will be taking a look at who can one day succeed tim cook as apple ceo. coke has reached the 10 year -- cook has reached the 10 year anniversary in charge and was recently granted one million shares that pay out ensuring he , will remain ceo for the next five years, but what about after that? it's take a look at four potential successors. first, jeff williams, coo. if cook were to step down, look no further than him. he leads all the operations. the apple watch's development
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and the design team. next, greg jaws we act -- greg joswiak. he is the head of marketing. he has been in charge of product marketing and could certainly be capable of the next leader. next, deirdre o'brien. she has seen it all in her three decades at apple. lastly, john tournis. if he became ceo in five years, he could hold onto the role for well over a decade. with cook's departure probably at least five years away, someone else could emerge. with one decade in the rearview mirror, we are on schedule to start looking toward the future. this is power on. emily: don't forget, you can sign up for mark's weekly power on newsletter at casino operator wynn resort says it will spend $100 million this
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football season marketing its its new betting app. my colleagues caught up with the wynn ceo for this exclusive interview. >> we did launch a brand campaign as you mentioned today, featuring ben affleck and shaquille o'neil. the purpose is to convey our brand positioning. we are among the best land-based gaming assets in north america. we think we have a unique position in the market. if you think about our land-based strategy which is about bringing people together to have fun, we went to convey that because our digital strategy is no different. as we look at what will be a $40 billion market or so, we think we have a very strong position in the market and we look forward to stealing our business
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over the course of the season. >> what about some of the competition? there are a lot of other casino operators, gaming companies who are -- who came to this market a lot earlier. i am curious as to how much the wynn brand will be able to catch up and close the gap? >> we are in the first or second inning from an industry perspective. it is a market that is generating $5 billion a year. it will be a 40 plus billion dollar market. we are in the very early innings. the state-by-state nature of rollout means it is not a typical duopoly situation. it is very straightforward to carve out a competitive petition in the market. our brand has tremendous net promoter scores. it is an iconic brand well-known
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in the industry. we like our ability to compete. >> you mentioned scaling is next. what does scalability look like to you given a state-by-state basis? >> we are live in seven states now. we have a great market position. we have pulled together a whole bunch of market access arrangements which allow us to go to market in additional states. we have the real estate. now it is about creating awareness through the branch campaign, backing that with a whole bunch of performance-based media buying. and attracting users to our products. many of whom become multiyear users and deliver tremendous lifetime value to us as the operator. emily: that was wynn interactive ceo craig billings. coming up, alibaba fires a group of employees after they shared details of a colleague's alleged rape online. after the break we will look at the follow-up and how the #metoo movement is gaining steam in
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china's tech industry. plus we will get insight into , the harassment lawsuits in the u.s. gaming industry. more on that, next. this is bloomberg. ♪
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emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. chinese tech join alibaba has fired 10 of its employees for leaking accusations of sexual assault against a former manager. the group was dismissed after sharing an internal forum's harrowing account of a colleague's alleged rape. this has rocked china's tech establishment, years after the global #metoo movement. "quicktake" has been looking into the issue and has spoken with vocal critics. >> women are much more willing to come forward there.
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they are telling their stories. in early august, an employee at alibaba, during one lunch break, she went to the cafeteria and held a loudspeaker and told all the employees in the cafeteria there is a rape case and later she posted a detailed memo about what had happened. that memo leaked and became a nation wide discussion about sexual harassment, drinking culture discrimination , at the workplace. >> since then, the accused alibaba manager has been fired and arrested. two senior executives at the e-commerce giant have resigned and the ceo called the company's handling of the incident a humiliation. china enacted a new civil code in january. article 1010 outlined for the
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first time what sexual-harassment is an made employers responsible for the supervision of sexual harassment in the law. >> there are improvements. but it is very limited. there is no detail. there is nothing saying this company is responsible. if a company is found responsible, what are the consequences? i think there are more regulations to make this enforceable. >> if this happens in the company, is there a support system in place in which they can safely report the issue? >> she mentioned that she was called by her manager a beauty. she was presented by her boss as a gift to the client. everyone had some experience of being called these terms and you see a kind of solidarity. so this is actually really not unique to alibaba. this is happening to many companies whether it is bigger
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big or small. >> recent incidents also highlight china's toxic drinking culture. >> drinking culture is vast. clients and employers, they are supposed to drink. it is like one has to outcompete the other to show respect. for example, if a person in a higher position drinks a glass of wine, you are supposed to show respect by drinking more wine. >> you are kind of peer pressured to drink. it is a situation that could easily, especially for women, be a bad situation. >> the chinese communist party's anticorruption watchdog says it is cracking down on a culture of heavy post-work drinking and replacing it with correct values. china has been slow to absorb lessons from the global #metoo movement but the movement may be gaining momentum again with high-profile cases like alibaba
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and the chinese kadian popstar -- chinese canadian popstar chris wu, who was arrested and charged with sexual assault of a minor, something he denies. >> to speak up in general is already a big step. to file protection orders or a legal case against someone for sexual harassment is another step up. it is not that there isn't more cases happening, it is that people are willing to talk about it more because these things have been happening for decades and decades. >> women are much more willing to come forward. however, there's a lot of censorship online to women's rights groups, social media accounts. from one side, the government is on state media saying we should tame this drinking culture. we should not have those activities. they are conducive to immoral behavior, karaoke. >> in a speech to the united
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nations, chinese president xi jinping has pledged to promote women's rights and address. interests, but activists say it is not enough. >> on the other hand, they don't want women to have their own way to organize together, to voice what they want. emily: in the meantime, the videogame industry here in the united states is undergoing a me too reckoning of its own. california is taking legal action against the so-called bro culture at activision where women say they have been subjected to constant harassment, unequal pay and retaliation. the lawsuit paints a disturbing picture of life for female employees where men objectified women's bodies and openly joked about rape. in a separate filing, california is accusing ryan it -- riot games of using secret settlements to prevent workers from speaking to regulators. joining us now is the ceo and chair of super league gaming. you are a veteran in this industry. you have been working on some of these issues for a long time.
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what you make of the state of california taking on activision, taking on a company like riot games, in such a specific way? >> it is realities i think of having a space that really has always put the employee first, and that is a good thing, one of the benefits of living in california. certainly sometimes the taxes don't make you feel good, but certainly fairness and employee treatment has always been top of mind. it does not surprise me at all california has done that. i think obviously as well, there is a pattern, there is enough frequency that they are trying to send a bit of a wake-up call. the reality of these behaviors cut across many industries. i was new to the gaming industry about six years ago. of course, there were some of these impressions or images you had heard about, the
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industry not being as welcoming. i had a different experience. i found it to be welcoming. i thought there was a lot of respect for my background and the way i have proven myself in different industries. but this is really about the fact that other industries and many companies all go through a crisis. as they do, there are a lot of lessons learned when you look back. for me, i look at the companies and the case of riot, he went you see a company that went from being very small and young to explosive growth. when you grow that fast, you need to catch up with the right kind of processes and the maturing the company needs to do. with activision, this is been a very successful company. its well-established for a long time. company cultures shift and erode over time and that is why need to keep an eye on those signals. emily: the activision ceo said in a statement that "it is imperative to acknowledge all
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experiences and respect the feelings of those who have been mistreated in any way. i am sorry we did not provide the right empathy and understanding." the #metoo movement happened in the u.s. years ago. gamergate was years before that. how much progress do you think the gaming industry has seen? this happens across all industries but the gaming industry, it is interesting because you also have the demographics of the people playing these games. more women, more young girls playing these games, which is why it is important to have a diverse culture. when you look at the people making the games for the broader audience. >> it is kind of ironic. you would say in the u.s., 55% , of gamers are male. 45% are female. gaming is a place where everybody can be of equal footing in that virtual environment. in some ways, it is mucker democratizing and liberating regardless of your gender. equally to what we know, gaming has toxicity built into it. some of that comes from the anonymity. when you look at the cultures of
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companies, it is a tough one. super league has had a lot of growth. we are at 80, 90 people. different from five years ago when there were eight of us huddled in a corner of an office. as you get larger, you have to establish more mechanisms to identify these patterns are happening in the culture. when you are sitting at the top of the helm like at activision, it is hard to understand and look into the org and what the company is becoming known for or how it feels to work there. certainly, it helps a lot if you first set the standard at the top. i know it is so cliche but i really do think the first question i would be asking myself in their shoes is, does the leadership team and the next layer down of leadership really embody and passionately believe in this notion of a fair playing field? i do think again while gaming is
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democratized, so it food and -- so is food and music. it is not to say those industries do not have cultures that sometimes go awry or processes that break down that prevent fairness for all employees. it is ironic but it is kind of par for the course unfortunately as you try to establish a healthy working environment. emily: i'm curious when you think about this crackdown on the gaming industry in china, where the chinese government is saying children can only play video games three hours a week between 8:00 and 9:00 p.m. friday, saturday and sunday. we saw some impact on u.s. gaming markets here today. what is your impression of how this could impact the broader industry? >> my personal opinion, i think they might be missing the bigger point. we have a strong point of view in our company that gaming is
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good for you when it is done in the right context. many of the things we were talking about earlier about inclusive places, places that welcome diversity but also the layer's of strategy and critical thinking. we talked about it before on your show, it is about creating healthy environments where gamers are empowered to use tools to create cool games, create compelling content, to share that content. that has always been at the heart of super league. this notion that instead of looking at a very small percent of the cases where gaming has negative consequences, let's rise up and create tools that actually allow gamers to really thrive and to grow and have that truly exceptional talent. emily: always appreciate you sharing your thoughts and insights here. thank you so much. obviously, we continue to see how these trends play out. ann hand ceo of super
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, league gaming, thank you for joining us. coming up, the pandemic has caused mass exits across all industries and disproportionately women and mothers are leaving the workforce. we are going to speak to a representatives from the u.s. census bureau who has new details on how far women are backsliding. earnings season may be winding down but we have a few tech companies out this week. crowd strike reporting its numbers tuesday. all details right here on bloomberg. this is bloomberg. ♪
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emily: we have some breaking news out of apple. apple said to be adding satellite capabilities to iphones for emergencies.
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future iphones will be able to send sos texts via satellite in the case of emergencies. they are planning a satellite-based tool for reporting emergencies , specifically we are going to look into the story and bring you more details. this coming from my colleague mark gurman. meantime, the pandemic has led women to leave the workforce in droves. vice president kamala harris calls the exit is a national emergency. the principal economist at the u.s. census bureau has a new paper out addressing the economic impact of women and mothers opting out. she joins us on this week's work shifting segment. misty for the last 18 months, we , have been concerned about women backsliding. that is what you are seeing in your numbers. walk us through the most significant findings in your report. >> thank you for having me, emily.
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i am -- have been looking at the situation of particularly mothers of school-aged children and parents of school-aged children during the pandemic. the most significant components of this report i have coming out focuses on this issue of telework able jobs. i look at whether or not mothers slid back from active work status, meaning they have a job and they were actively participating in that job based on whether or not their job was telework feasible. the findings are interesting because basically, if you look at mothers who are non-telework able jobs, you are seeing a demand side of the story where employers had to shut down. they shut down and everybody lost their job and there was not a disproportionate impact on mothers and fathers in that case.
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with telework able jobs, what we did see and my report shows is telework saves a lot of businesses. it saved a lot of jobs. it did a good job of doing that for everybody but mothers. mothers in telework able jobs took a significant hit in their ability to stay attached to the labor market and their ability to leave. they were not on leave and they weren't unemployed. emily: that is where the interesting things i pulled out. remote work actually hasn't helped save mothers, which i thought was fascinating. i spoke with melinda gates about this and she said in no uncertain terms that women are in crisis. take a listen to what she had to say. >> women in the last 30 years were coming out of poverty as a globe, and now we are seeing a huge setback in that arena. we are seeing setback in the labor force. the number of women who stepped back from the labor force in the united states, two thirds of the jobs lost in south africa were
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women's jobs. i think we are in a moment of crisis. emily: here is the question. how do you expect this to play out as the pandemic drags on? schools are reopening but locked -- lockdowns are happening again and restrictions are coming down, going back up. workforces are pushing back returns to work. still a lot of uncertainty ahead . what is next for women? >> there is a ton of uncertainty and a ton of angst in the community with the delta variant. it is unclear how school is going to play out this fall. lots of schools are going back to in person. you see again how somebody in the classroom had covid and everybody had to go home for two weeks. that is a challenge for working parents, particularly mothers, to be able to continue actively working when their kids are being pulled in and out of school. one silver lining will put on
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this is that i do think mothers are amazingly resilient. they do tend to take a hit when there are transitions with kids and schooling, but they bounce back relatively quickly. i personally have been very impressed with the ability of mothers, of those who have been able to hang onto their jobs and have been able to continue working throughout all of this chaos. if anything, this shows us we do need to make sure we have support around childcare systems for children if we want women to be equal in the workforce. emily: absolutely. i thank you so much for your work on this. principal economist at the u.s. census bureau. we appreciate you bringing this all to light for us. meantime, robinhood shares ending the day down more than 6%. this after the sec chair gary gensler said a full ban of payment through order flow is on
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the table. the process involves sending customer trades to financial firms to execute and accounted for 80% of first quarter revenue. there had been controversies about payments for overflow over the course of the last year. . we will watch how that plays out. indian ride-hailing start up a -- an indian ride-hailing start up is said to have picked citigroup and morgan stanley to manage its mumbai ipo. giving the company evaluation of more than $8 million. -- $8 billion. they are joining a strong pipeline of indian startups ready to tackle private markets public markets in the coming months including digital payments company atm and flip cart. coming up, the long-awaited trial of elizabeth holmes gets underway this week. what we can expect in that case, which stands out as one of the biggest scandals in recent silicon valley history. meantime, the thriller "candyman" reached the top of the u.s. box office over the weekend, knocking "free guy" out
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of the top spot. it premiered exclusively in theaters. the release was delayed three times but it was worth the wait , making $22.4 million in the u.s. and canada, above estimates. this is bloomberg. ♪
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emily: jury selection will get underway in a legal case that has transfixed silicon valley and beyond. elizabeth holmes is charged with defrauding investors and patients of her blood testing start up theranos. the company claimed it could run an array of tests from a tiny amount of blood, but that turned out to be too good to be true. for more, we are joined by our bloomberg legal reporter, joel rosenblatt. jury selection is underway. we are learning more about elizabeth holmes' planned defense.
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what can you tell us at this point? reporter: this weekend, documents were unsealed in the case, revealing what we had known previously about a possible plan to point to her sunny balwani, her former boyfriend and former president and coo of theranos as the cause the reason that she made up what the reason that she made up what or she did, the reason that she supposedly defrauded investors and doctors and patients. she is pointing to psychological abuse as the reason for her behavior. that is her defense. that is her defense. we've known about it, but more details came to light this weekend. emily: as i understand it, that is pretty unprecedented , especially in a white collar fraud case, right? reporter: as far as i can tell, it is completely unprecedented. it is a reason that people give often times in murder defense.
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in particular if a woman is being subject to abuse and murders somebody who is subjecting them to that abuse that is a defense that is , sometimes raised in a murder case. it has never been used as far as i can tell in a white-collar criminal fraud case. most criminal defense experts think it is a long shot. it is a real stretch. emily: this case could go on through december. i believe the judge will -- the case will be in session, just about three days a week. what do you think her chances are, given how much reporting to has been on this? documentaries made, books written already about this whole scandal. reporter: that is an interesting point and has been the subject of jury selection. to my surprise, questionnaires went out to 200 people in san jose. 200 potential jurors.
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to my surprise, one half of the 200 and not know elizabeth holmes, had not heard of theranos or sunny balwani. you and i hold the jobs we have, sarahknown to us. but for some people, they don't know -- and theranos is well known to us. some people, they don't know anything about it. that is the jurors they are going to be looking at. emily: i never will forget the time i interviewed elizabeth holmes. we will have to dig that went out of the archives as we chart this case. joel rosenblatt, thank you so much for bringing us those details. that does it for this edition of "bloomberg technology." make sure you tune in tomorrow, we will be joined by the zoom video cfo kelly steckelberg. ,also joining us is gary chan, partner of x-ray box. i'm emily chang in san francisco. this is bloomberg. ♪ ♪
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>> the opening by the u.k. government was terrific area -- terrific. it was between jfk and heathrow. that was great. as a u.s.-based carrier, most of what we sell is in the u.s. it is great for jetblue. the u.s. should open up. there is no reason not to. you can fly to countries with more covid infection rates, but not where they are lower.
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when it is going to up -- open up, i could not tell you. we continue a dialogue with the administration. >> by christmas? >> hopefully sooner. i do not know. it is hard to predict how they are thinking about it. >> this is "bloomberg daybreak: middle east." our top stories -- china delivers a pmi shocker, adding to concerns of global recovery. they came in below the forecasted range. the last flight out. the u.s. officially ends its presence in afghanistan, ending two decades in the country. defense targets drop


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