tv Bloomberg Technology Bloomberg September 7, 2021 5:00pm-6:00pm EDT
emily: el salvador adopted bitcoin as a national currency. why the rocky start? we will discuss. plus, a long-delayed much anticipated trial. a jury will decide if she is guilty of conspiracy and fraud, the reporter who blew the lid off the theranos story years ago. and linkedin's co-founder has invested in some of the most high-growth tech companies ever including facebook and airbnb. reid hoffman joins us to talk about how entrepreneurs today can be masters of their own destiny. we will get to all that in a moment, but first, let's get a look at the market our own taylor riggs. we cannot talk about what happened in the markets today without talking about crypto. taylor: i know. i feel like i was the sell signal for crypto early this morning. so interesting. we came in this morning and it felt like a reflationary trade all over again, but all of that
reverses. you saw some movement in big tech continuing that safe haven theme, let in part by apple and amazon and some of those traditional safe haven sectors. that was really what was holding up the market today. in the terminal, you see that divergence between the nasdaq that was leading gains versus the russell 2000 and they divergence out of that reflationary/inflationary theme, so that really sets us up for what was a pretty good day in technology, until we get to bitcoin, and this is where i leave you. take a look at not only the cryptocurrency -- bitcoin is up .3%, and that number should be down 10%. it opened the market this morning above 50,000. trying to hold onto $47,000. everything else falling in sympathy as well.
emily: thanks for that comprehensive roundup. as we just heard, rocky start to bitcoin's biggest test in its history. the rollout of the cryptocurrency as legal tender in el salvador met with a price crash and also divided some pretty high-profile investors. >> el salvador -- let's face it -- it is on its back. it's got real problems. it is a bankrupt country, in fact. they are grasping at straws with bitcoin, but i don't think it is going to affect other countries. >> i guess the real question is come back in six weeks or 12 weeks, and let's talk about how it is working. emily: el salvador's leader remains optimistic and said in a tweet that his country has taken advantage of the crash to buy the dip, adding 150 coins to
take its total holdings to about 100 d million dollars. -- 150 million dollars. michael, we start with you. what does this mean for bitcoin? what does this mean for el salvador? michael: as you mention it became legal tender in el salvador, so what it means for bitcoin is there are businesses that will be required to accept it if they are technologically able. we have seen several businesses today, particularly larger ones like mcdonald's, pizza hut, starbucks -- we have seen bitcoin go through some of these larger chains in el salvador. also citizens in el salvador if they want can pay their taxes in bitcoin.
it will operate alongside the dollar for now, so the dollar will still be a national currency there as well, so if people don't want to use bitcoin, they can use the dollar as well, but businesses will be required to accept it if they are technical -- technologically able as of today. emily: that said, with the president saying to buy the dip, should we be a little skeptical of what is happening here? >> that's a good question. i think it will take time. i agree that this is going to take a lot of time and infrastructure in order to accept these payments at scale. it will take significant manpower in investment as well, and while they are putting into place thousands of payment processors in all these different businesses, it will take time, but taking a step back from what michael said, even around some of those larger companies, for a country where a
quarter of gdp is based on remittances, i think this is much larger in terms of the impact it can have on the populations and their ability to move money across borders that perhaps they cannot today but could if they just had a mobile device. emily: that said, the population is not necessarily too excited about it. among folks who live in the country, how widespread is it, and could that really slow down broader adoption? michael: we have seen polls showing that about 70% of el salvador and's to use the dollar and we have also seen 70% have said they would like to see the bitcoin law repealed, so there is quite a bit of skepticism on the ground. i also think there's a pretty large financial education learning curve. el salvador is not a country that has a lot of its citizens using the traditional banking
system. cash is still king in el salvador, so bringing this new technology like cryptocurrency, there is still a hesitancy and some pushback at first, so, you know, we are seeing a lot of people that are skeptical on the ground. there were questions this morning with the wallet. people could not download it for a while. it was off-line. emily: that said, we have learned we can never judge bitcoin on any given day, but what do you make of this price move? how much has to do with el salvador or anything else? >> good question. it has nothing to do with el salvador. what we saw today was very much what we saw with liquidation. you have seen over the last couple of weeks, retail institutions or overseas
exchanges, pile into futures in products maybe they did not necessarily know or were funding correctly, and there was a leverage waterfall and cascading liquidation. what i found really interesting is that this was very much like a bullish bear day, so we saw that bounce back really quickly. we are now at a support level of 47. i still think we are very much nearing that 60 k mark, so we are continuing to see a lot of -- of the $2.6 billion in liquidation, $1.7 billion was in bitcoin. emily: if you are that optimistic, when do we get to 60 k? also, we have the cofounder of cracking on the show who said we
will get duped -- we had the cofounder of kraken on the show who said we will get to 100 k by the end of the year. >> i may not agree with jesse on that. the question is beyond 50 k was not the leverage on bitcoin but people accumulating bitcoin and what we see is a lot of these institutions took the opportunity to buy the dip, not just with bitcoin but across different assets, so i think we will see that 60 k sooner than we expect in the next couple of weeks. emily: thank you very much. apple has set the date for its biggest product launch of the year. the company has announced it will unveil its latest line of iphones and other devices tuesday, september 14.
bloomberg has learned the iphone maker has been working on for new iphones as well as apple watches and new air pods. the event will be held virtually. doug ford will be joining -- coming up, from the board room to the courtroom, theranos' founder is set to face a jury and possibly 20 years in prison. after the break, we will speak to the man who exposed the silicon valley scandal next. this is bloomberg.
>> our company is about realizing a world in which early detection and prevention become a reality, and we want to take this company to a place in which because of our work person by person everyone has the right to get access around health information and be able to do so at an incredibly low cost and in a wonderful way, and that means changing the way lab testing is done today. emily: that was elizabeth holmes, the first and only time i interviewed her about her blood testing start up theranos, just a week before "the wall street journal" published a massive expose on the company, and the last chapter of the scandal is being written as we speak. wednesday, home spaces charges of defrauding investors about
the potential of theranos technology and could face up to 20 years in prison if convicted -- homes -- holmes faces charges of defrauding investors. my next guest followed the story and later published a book about it, "bad blood." you are on the defense witness list. what does this mean? >> that's right. the defense just posted the list of witnesses they may call, meaning once the prosecution has arrested as part of the case and the defense presents its own, i am i think number six on the list. the interesting thing is that prosecutors -- the three main prosecutors in this case are also on this list as well as officials from the fda and tms, the two federal health
regulatory agencies. this tells me clearly one of the arguments the defense is going to make is that this was a witchhunt, a witchhunt by the government, and the government was in league with me, allegedly. that is what they will argue to the jury. i think they are going to try to show that those health agencies cracked down on theranos in a way that was harsher than they might otherwise have. they will try to make the case that i biased them, that i colored their judgment and that basically none of this would have come to pass if i had not been in contact with them and if they had not read my story -- my stories. emily: we will certainly watch to see if you get called. you broke the story. you say she was indeed, "faking it," lying, maintaining fraud. she has maintained her innocence. her defense involves her former
business partner and also her ex-boyfriend. she says he mentally abused her. what do you make of that defense? john: that's another line we learned about in the past 10 days. she is going to allege that he was sexually and mentally abusive and that he effectively deprived her of her free will and of her agency and that as a result, she is innocent of the charges. as i say in my podcast, it is an incredibly hard defense strategy to pull off. you have to get those 12 jurors to believe that all those times that she was addressing audiences at the height of her fame when she looked incredibly charismatic and self-possessed and charming and intelligent, that she was never really in control, that she was a puppet who was controlled by a puppeteer, and that puppeteer was sunny but whiny -- was sonny
balwani. they will have to get the jury to believe that this mind control was going on for the better part of 12 years. it is a lot to ask, but who knows? in my experience in my six and a half years of reporting on this, i have found that she is a chameleon. she is going to sell this hard, going the witness stand and play the naive young woman who was manipulated by an older man, and who knows? the jury might just eat out of her hand. emily: things have become complicated in the months and weeks leading up to the trial, some of which you report on in your podcast. she also had a baby, which delayed the trial. that led to a round of different kinds of speculation. talk to us about the twists and turns over just the last year. >> right, so, first of all, the case was delayed for more than a year because of the pandemic.
this was originally supposed to go to trial in summer 2020. it was delayed several times because of the pandemic, and then it was supposed to go to trial in early july this year, and it was delayed again by another six weeks because she was pregnant. she gave earth in early july, and jury selection began last week, but the wheels of justice have turned very slowly -- she gave birth in early july. the wheels of justice have turned very slowly in this case. my first "wall street journal" piece came out in 2015. i started investigating in early 2015. we are now seven years later, and this is still a case that has not yet and decided. i am personally anxious for this to happen and for this to move forward. emily: all right, john carrey rou, host of the podcast "bad blood." coming up, revving up to
about the timeline for a chip supply turnaround. he was the only chipmaker at the event. intel's ceo also announced his company will dedicate production at its plant in iowa to making semiconductors for the car industry. >> today we are announcing the european founded services out of our island facility, and we believe this is an opportunity to expedite the end of the supply shortage and we are engaging with auto and other industries to help build on capabilities. emily: it was not just tips on everybody's mind -- it was not just chips. another key talking point -- italy, home to a number of key sports carmakers, has been exploring ways to shield those companies from those rules, but
they say the exemption is not necessary. >> on our roadmap, 2022 will be the last year, and we are going to hybridize our lineup. there will be the new rules and the follow-up at the end of 2024, and this will allow us to cut emissions by 20% in comparison to today. we are engaged and taking this position. matt: i feel like i'm going to pass out. it's just so exciting for me. what is the powertrain going to be? what will it be like? >> it will be a completely new car with a new name. it will have a new ve 12, and it
will be a plug-in hybrid. matt: the big concern at the car show has been the chip shortage, the supply chain. it is not getting better. how does it look from your vantage point? >> so far, so good. we have no shortage at all. we checked this on a daily basis , for sure, but at the time, we are not being touched by the shortage of the chips. keep in mind that we are not a big car manufacturer. matt: what are you making, 7000, 8000 cars a year? >> 7000 something, we don't know exactly. it will be a wonderful year for lamborghini, and we are looking forward to doing another best year in 2022. matt: yesterday, everyone was talking about italy at the car show trying to get an exemption for lamborghini and high-end
super carmakers to keep producing internal combustion engines past 2025. do you think it will work? >> it is not decided yet, but what i can tell you is we have to be prepared to be compliant worldwide. so we have to work with what legislators are telling us, and sustainability will be even bigger after 2030, so we have to work, let's say, with the legislation which is going to be in place, and we are well prepared. as i say, hybridization is the first step in this decade. we will see what we will do with eu rules at the end of the decade. we will have a model which will be a full electric car which will launch in 2027.
we also look into the opportunity of having synthetic fuel after 2030, so this could be an opportunity to keep internal combustion's with hybrid alike. emily: lamborghini's ceo with our own matt miller. up next, fort's big hiring boom. find out more about how the company lured a top apple executive. plus, we speak to linkedin co-founder reid hoffman about the surprising things he has learned from the world's top tech and business leaders and how the pandemic may have changed what it means to scale for good. that's next. this is bloomberg. ♪
emily: welcome back. let's get more on the former head of apple's car project. ed ludlow is with us for more. huge for ford. >> this is doug fields. he led the special projects team at apple which we know was all around an electric vehicle with autonomous cave abilities. he is leaving apple for the second time, sandwiched between two stints at apple, he was at tesla from 2013-2018 and left when the company was ramping up
the model three. he put apple on the map, now he is going to ford. you can see what ford investor stop because the stock has been under pressure before the holiday weekend. we saw it pop when the bloomberg scoop hit. the company basically confirmed his job is going to be focused on not just electric vehicles, we know ford is going big, but other things like digital service and high-margin software. it is interesting, over the last 12 months, where has the love been? look at how the stock has performed compared to apple. you can see investors are loving this. the -- commitment to really be a big player not just in electrification for autonomous vehicles, now you've got -- emily: we will watch how that plays out. longtime silicon valley and investor reid hoffman is out with a new book. he has insights and hard earned
wisdom from leaders of electronic companies and startups like apple google, microsoft and more. companies that are solving some of the world's most complex problems -- or, trying. joining us is greylock partners and host of the masters of scale podcast, reid hoffman. thank you for joining us. what is so great about your podcast is that you have been in the trenches, you have gotten the know and you have pushed through. you started doing these interviews pre-pandemic. how has the word "scale" changed? has it? reid: it has changed. it changes. scale entrepreneurship is all about the competitive landscape. competitive companies and products, talent, developing a deploying new products. part of the work on the podcast
is all basically that you have to -- the first to scale is the technology company that sets the rules. that dynamic, not driving competitive force is still there. the way you do it is different. supply chains have changed. hiring has changed. the way teams operate have changed. how all of this happened in a more remote hybrid environment is much more challenging. the environment is changing as we saw delta figure out vaccination and testing, maybe hybrid gets more back to work as well. it is a constantly changing landscape. emily: you've interviewed everyone from president obama to alex rodriguez. the subtitle of the book is "surprising truths. if you could pick one thing, and i know it is hard, which one of
those truths surprised you most? >> i think the things that most surprised me was the rules around entrepreneurship are not just these silicon valley lessons come about apply more broadly. it is talking to people who are both -- who are mostly outside my network. tyra banks made herself in or mislead successful approaching it like an entrepreneur. franklin leonard creating the blacklist. a-rod, all of these folks, we discovered the principles of entrepreneurship aren't just kind of the people who go, i am going to start a company, but how you think about creating something from nothing and from -- huge scale. emily: elon musk said entrepreneurship feels like swallowing glass and staring into the abyss of death. do you think anyone can be an entrepreneur?
does it take a special kind of person? it sounds terrifying. reid: i think is a good thing to think it is terrifying. i used the jump off the cliff from an airplane and looking at the abyss below you less like swallowing glass. it is difficult. i think there is a combination of characteristics, risk tolerance, the right safety net -- which helps when you come from a family with a little bit of money, or other things, he network that can support you, that is part of where you have an easier time. i do think it can be learned. it is less taught, more learned. the experience joining companies and part of what we try to do in the podcast and on the app in the book is say, here are the things you can be learning, watching the journey, watching the lessons that these iconic folks who had to -- in elon's
words -- swallow glass and stair into an abyss yet still persevere. emily: people get told no for all kinds of reasons. you spoke to the founder of spanks, kristen walker of bevill, dealing with problems that many white males don't understand. john foley who got told no. they thought he was too old at 40 years old to be an entrepreneur. how many world changing companies do you think are not being started, not being built because of the lack of access to opportunity because of discrimination and bias? what is silicon valley doing to change that? reid: the answer is a huge number. easily two-x companies if we just got the power that works on the network access right. silicon valley, very thankfully
over the last -- has been committed to these efforts. at greylock, we have been working with management leaders of tomorrow and adventure firms in order to have a broader pipeline for entrepreneurs and investors and companies getting financed. network building, from a cofounder of linkedin, is the way you ultimately address this. have the market do it. there is so much talent and capability and we are losing out on it. the reason it is not so simple to solve, like tristen and a number of people we had, it is not so simple to solve because we have this huge flood of noise where you are always looking for that signal so you have to make sure the network you build for the entrepreneurs of color, women and other sources, in order to build this. we will see year-by-year progress because now people are
putting it in their dashboards. i think then the engine will catch. emily: some companies here, apple, microsoft, companies worth more than $2 trillion, because of their scale they are facing regulatory scrutiny around the world. is scale -- can scale potentially be one's downfall? reid: certainly they are getting pressure. governments are uncomfortable because of the profitability of these companies. on the other hand, how do we get the investment in the future we want? how do we get artificial intelligence because that will be what creates robotics if we have any hope in the u.s. of a return to manufacturing it is through robotics. that will come through investments microsoft, alphabet,
amazon, facebook are all doing to make this happen. i do not think big is necessarily bad. what is too big? the question is, is it helping society? i use manufacturing as an example because obviously we need a place where all society is brought along for new jobs and opportunities. that is something we in the tech industry need to pay attention to. not just what we do globally by creating great export products which brings back interesting economics and capabilities to the u.s., but how do we help these industries? all these industries are in the process of technological revolution. that doesn't mean that sometimes biggest and bad, but big, by itself, is not bad. emily: i will ask a question you ask guests on your podcast. what advice would you give to
your high school self? >> fortunately, i wrote a book about this. i gave the commencement speech at my high school and was scratching my head like, what this a technology entrepreneur sata high school students who are going to go be teachers and artists? be the entrepreneur of euro life. the notion of a -- is gone. it is now more like a career jungle gym. you have to approach your life like an entrepreneur approaches a company. that doesn't mean everyone should go start a company. the approach to a career is that. one thing to do is say, which smart risks can i take that gave me an ability to make interesting jumps in my career? look for those risks. what a smart risk is is something that is not as risky as it looks and has a good
outside opportunity and other people aren't doing it because it looks risky. thinking about that would be something i learned the hard way and would have loved to apply earlier. emily: reid hoffman, masters of scale podcast come out with a new book, cofounder of linkedin. good to have you with us. coming up, up and away. aviation company archery gets closer to faa approval for its solution to urban mobility. we speak with the ceo.
emily: beijing city government denying a report that could put -- under state control. bloomberg reported friday that the municipal government had proposed --, which is part of the beijing tourism group would require stake. this comes alongside a swath xi jinping of penalties considered over data concerns since going public. meantime, remember when we thought the jetsons was a world away? flying taxis are getting a step closer to reality. santa clara based archer announced it is one step closer to securing faa approval for their aircraft certification project, a critical milestone. for more on what is next, archer aviation cofounder and ceo adam goldstein.
thank you for joining us. the faa's endorsement is a big deal for you. what does this mean for archer? adam: thank for having me. archer is building electric vertical takeoff and landing vehicles to be used in urban air mobility. these vehicles would be affordable and designed to be as safe as commercial airlines. we are certifying vehicles in the u.s. with the faa. today we announced the first major milestone in this process by receiving our g1 certification. we believe we are one of the only countries -- companies in the world to have accomplished this. it is significant because this is one of the hardest parts of the entire certification planning process. it is a big deal. by approving the g1 certification, it is showing the faa -- has been forward thinking
in terms of sustainable air transportation. emily: when you imagine rollout would be? joby aviation says they will be ready in 2024. adam: our certification timeline follows a similar pattern. we have announced we think we can get through the certification process by the end of 20 24 and announced two early launch city partners we will be deploying. that is los angeles and miami. emily: how does your jet differ? adam: the industry has the potential to be very big. i know we are both building vehicles out there to be deployed in this industry. if i could just focus on archer, it is an unbelievable amount of momentum across the entire industry. specifically within archer, we announced a huge partnership with united airlines where they
are going to be purchasing $1 billion worth of aircraft from us. we also announced a partnership with a manufacturer called -- you look at the partners that have come into the market and are helping this industry come to its form and it sets up for quite an attractive positioning for the industry. with the city and partners between los angeles and miami, we are getting closer than many people would think. emily: you have been embroiled in a court battle with another company called whisk. they claim designs were stolen from them. can you give us an update on this and your position? adam: today is really about the momentum we have seen with archer. we are pleased with the court's ruling denying the preliminary
injunction. we believe the case had no merit. emily: you are planning to do a spac as well. tell us about what that money would allow. paint the picture of the future. how often will regular people be riding in an air taxi? adam: the industry is a culmination of three big things. one is regulatory. there is a framework in place that will allow companies to certify these vehicles. the second is environment. capital has become available to hardware companies. looking back historically, financing hardware companies was challenging. you have this set up where the third leg of the stool is technology that is really involved. the advances we have seen with
electric powertrains my batteries and electric motors have gotten us to this point where the core ingredients are in place to have the industry come to life. now it is about getting through the certification process. we are making our way through that process. g1 is a good way to help the industry understand there is a timeline we can start working towards in helping everybody understand that the market will come to fruition as we expect. the progress the entire industry has seen across this culmination of technology and capital regulation come together i think is important. also, recent announcements from archer with the u.s. air force getting involved in our flight testing programs. you are seeing industry partners get involved where the industry has become an important asset to the u.s.
we are entering this golden age of aviation and it is important the next big aerospace company is built here in america. emily: archer aviation's adam goldstein. we will keep our eyes on you. thank you for joining us. two of the biggest aerospace companies in the u.s. have invested in a refueling starter. northrop grumman and lockheed martin have joined in a -- worth $10 million. the company plans to launch two refueling shuttles as early as next year. after the break, disney's new model film breaks barriers -- marvel film breaks barriers. we have the details next.
emily: the first marvel film featuring an asian actor as its start dominated the box office with a new record for a film opening over labor day. making over $90 million over the weekend. joining us to discuss, chris palmeri. what should hollywood be taking away from this? >> this is another data point in a series that suggests by including more people of color and more high-profile female roles, people will come out. if you look at just the marvel movies, black panther, captain marvel, or the tremendous run asian led movies are having, crazy rich asians winning best picture, there's plenty of information that audiences of all kinds want a diverse cast. emily: look at the cities where
this was particularly successful. cities with high asian populations like san francisco, honolulu, hawaii, vancouver, your reporting talks about how this film was a risk for disney. at what point to filmmakers in hollywood realize it is not a risk anymore? >> that message is getting out. by the way, there is a terrific chase sheen -- chase scene shot in san francisco. this was a number they -- a film disney decided to to do only in theaters on labor day weekend, not traditionally big for moviegoing. for that reason alone it looked like he was going to be the top grossing labor day release of all time but it blew past everybody. $90 million. it helped lift the whole weekend. we haven't seen these numbers
for six or seven years. the pandemic cost aside for the weekend. emily: is a just this weekend? only in theaters, it did well, is this an inflection point for movies post-pandemic or an aberration? >> it is easy to get excited with these big numbers. we saw this with the fast and furious sequel, black widow in july. people said, maybe we are getting used to coming back. my hunch is that is not the case. if you have a movie a lot of people want to see, especially if it is only available in theaters, and this movie was, then people are going to come out. it will do pretty well next weekend as well. there's no way to see it online. and it is a good movie. does that mean two or three weeks from now when there aren't as many good movies -- they are
postponing the new top gun into next year. it is not clear the theater industry is out of the woods. emily: what are the next big releases you are watching for? >> we are going to watch to see if james bond hangs in. it is still touch and go. emily: thank you -- as always. that does it for this edition of uber technology. tomorrow we are joined by the ceo of -- to talk about the company's latest results. i am emily chang. this is bloomberg. ♪