tv Bloomberg Technology Bloomberg March 9, 2022 11:00pm-12:00am EST
ukrainian officials say they are open to meeting russia's demand for neutrality but only if there is an immediate cease-fire. bitcoin bounces back as president biden size eight executive order on digital assets -- signs an executive order on digital assets. a stock split, what it means, later this hour. buying the dip, stocks rally despite lowering -- growing fears. president -- the president of ukraine is open to discussing neutrality as long as it comes with a cease-fire. walk us through the day. >> a big bounce back for u.s. equities offer the back of the biggest rebound going back to juno 2020 technology leading the charge here. many are requesting -- questioning at this will be at a dead cat bounce. they bought a market could
suggest the latter, yields have been rising over the past four days, they sit on the 10 year. closer to the highs we have seen this year, the story is in the commodities, coming off of the highs. energy stocks moving lower, terminal chart of the day, comparing the weekly percent changes of energy stocks in the s&p 500 to the technology counterparts. there is a string of energy stocks are performing technology. it is the speed of the move and how energy has risen so fast, we have a note saying the average energy stock is 2% off of the analyst 12 month target. it could suggest a pullback. i just wanted to talk about breaking news we had in the past 20 minutes, this is regarding amazon, announcing it is going
to go ahead with a 20-one stock split and the repurchasing of up to $10 billion worth of shares. all of the big technology games seem to be doing those stock splits these days. you can see the stock getting a nice pop there post market. emily: antony blinken condemning the kremlin's plan for humanitarian corridors leading to russia as absurd, he has demanded that ukrainians be able to safely flee the city is under attack. >> our goal is to end the war, not to expand it. including potentially expanding to nato territory.
we want to make sure it is not prolonged to the best of our ability. otherwise, it will turn deadlier and involve more people and even make things harder to result in ukraine itself. emily: bill is winning us now from washington. -- bill is joining us now from washington. what is next? >> as the conflict continues to going on, the biden administration officials are considering whether to sanction a premier supplier of uranium, not just to a europe but to the united states. the major energy company, it would be another big blow it would also be something that would have ripple effects you in the united states. -- here in the united states. the company provides enriched uranium. these are the things in the
nuclear plants typically stockpile but it would force a lot of to find alternative sources of uranium for nuclear power plants in europe in the united states. emily: you have this children's hospital and maternity ward being bombed. all of this putting additional pressure on the united states. what a war can the -- what more can the u.s. do? >> it was guarded and munitions by the russian forces who are still not managing to capture any big cities but are continuing to press down and started to surround places like kyiv.
the u.s. is try to work with nato analyzer to get air defense systems and defensive weapons into ukraine. there was some talk from polish authorities about swapping their fighters or sending fighters to germany for delivery to ukraine, the u.s. has ruled that out for the time being, saying it would only serve to escalate the conflict outside of ukraine's borders. emily: ukraine is saying it is open to a diplomatic solution, but they are saying that they will not surrender a single inch of territory. we are almost two weeks into this war, no major cities have been captured. >> ultimately, russia still has the fire pyrite -- firepower and the numbers but it seems like things have not gone the way that they probably expected it to. the ukrainians have said that they are open to talks, they are open to having a cease-fire, a withdrawal of forces. it is more on the russian side, we have not seen the russian interest in doing so. the big uncertainty is what would happen in these eastern
areas that were controlled by separatists where russian troops have been, whether that would ever return to ukraine or not. that would be a key issue in those kinds of talks. emily: thank you. bitcoin jumping above 42,000, spurred by optimism about a u.s. overhaul of crypto regulations. janet yellen has called it historic. the executive order mandates government agencies to take a closer look at issues from developing a potential digital u.s. dollar to combating illicit finance. the details, what is this executive order -- what does this executive order mean when you look at the fine print for the crypto industry? >> i think you mentioned earlier that bitcoin was up 10% at one point, the initial feedback is
pretty positive from the crypto industry. there has been this concern when you talk to people in this business that the u.s. will get a come out swimming and not take a deliberate approach -- will come out swinging and not take a deliberate approach. they are taking a broad look at this asset class. from the crypto industry's perspective, that is good news. they have been complaining that financial regulators are taking a heavy hand and they continue to talk about the way that the government should be focused on what they say are some of the positive aspects of google currencies. -- cryptocurrencies. the biden administration is looking at a 10% bounce in bitcoin is good news for them today. emily: what the crypto community is saying about this and lawmakers?
>> it was interesting to see, you saw republicans, including some of the highest ranking members of the senate banking committee, pretty key in any kind of regulation coming down the pipe. parting what they saw from the biden administration -- applauding what they saw from the biden administration. everyone said that they found something that they liked in this order. you could see a situation where that could also be read as i think in here that is saying that the crackdown is imminent.
we are going to see over the next six months or so whether any real action in terms of writing regulations or any kind of policy has been put in place. that will take us up into november, we have midterm elections here in washington during the whole political landscape in terms of laws and rules will change but a bit. emily: could this be called a game changer for the industry? >> some are saying that, there are a lot of responsys saying that this is a big deal. -- responses saying that this is a big deal. to have the president signing an executive order is saying that the asset class is here to stay. it is not a flash in the pan. on the other hand, it remains to be seen, this calls for a report that could come as long as six months down the road, at that point, it would be up to the administration, regulators, to put in place in new rules.
this could take months or years. there will be a lot of lobbying from businesses and interests all across this issue to try to make things work out how they want them to. emily: thank you for your recording. keeping in touch with friends, families, employees under sheet in ukraine. how one company is trying to keep communication lines open to make sure that humanitarian aid could store it needs to go. -- gets to where it needs to go. ♪
needs. the founder and ceo is with me now for more on how it is doing all of this work. you work with all of the major social channels, what kind of communications are you seeing between businesses and customers businesses in ukraine? >> before, our company was used for communication. we are seeing a load ngos and communities using -- a a lot of ngos communities using us for transportation. we are just trying to help out. emily: how are you supporting these businesses who have this flood of requests at this time?
>> several different ways, one, as a company, we provide customer service for people to coordinate on our platforms. this is not just business, it is just as much people try to help out. it is about 2 million refugees have come into europe. a a lot of people are trying to help out in different ways and ordinate as quickly as possible. we launched our own fund, to help out so our employees are trying to help out. i am trying to organize other technology founders to come together and all of us use our knowledge, companies, to lend a hand in this situation. emily: this ngo fund you mentioned, what is your hope about how this will help? >> the fund is -- we are looking to deploy the capital in the next two years.
right now, it is needed as much as ever. i think a more broadly, what we are trying to do is stand up. it is important for founders and ceos to step up, the technology sector is uniquely positioned to help out. i am working together with a netherlands founder of a bank, he has turned to get refugees a bank account so that we can coordinate money -- he has been trying to get refugees a bank account so that we can coordinate money. a supermarket has a supply chain logistics to coordinate funds. initiatives like that where we are really focused to try to help out.
emily: speaking of standing up, this clampdown we see on services across russia, we have seen companies take a stand, are you cutting off any of your services to russian businesses and users? >> we have. pretty much immediately. i will be honest, it is 4% of our revenue, it is a significant -- it is significant, but it will not kill our business. anything we can do to stay no -- say no, the russian people have nothing to do with this. it is set for them too, but it is the only peaceful protest we can do. stopping services due to the russian community. emily: you are joining us from amsterdam, you have a team in ukraine, how big is that team and what are they doing?
how are you helping them? >> we had do not have a big team in ukraine, all of our employees are out of the country, we were able to get them out pretty quickly but they have family there. so far, everybody is doing ok considering the circumstances. it is horrifying. we have families or you hear the air alarms go off. it is -- it is 2022 and we are having a war at the borders of europe. it is crazy. emily: founder and ceo of messagebird. thank you for joining us and sharing the work you are doing. coming up, amazon is soaring after the board approved a 20 41 stock split. -- 20 for 1 stock split. ♪
emily: amazon splits a stocks, sending shares soaring, it will stop sending products to russia and cut off prime video to russian customers. i want to bring in brad stone for more on this, we just saw alphabet to something like this earlier this year. unlike amazon, to do a stock split, what are they doing this, and what does it mean? >> jeff bezos resisted this financial engineering, one insurer of amazon stock is 3000 is equal to 20 shares at 150. a lower stock price makes the stock market to retail investors and employees.
you have one million warehouse workers who have an option of including equity in their compensation. and sit fractional share, they get a whole share -- instead of a fractional share, they get a whole share. investors are responding favorably, they did today and to google announcing it last month, the thinking some of the orthodoxy at amazon. emily: improving the accessibility. i wanted to ask you about amazon's move in russia, cutting off prime video. how significant is this for amazon, who will this really impact? >> not to call it a nothing burger, but no data centers in
the country, no offices, there is no such thing as amazon.ru. if you are in russia, you are probably ordering from germany and getting things shipped from poland. amazon is taking a stand here and to the extent that it is impacting amazon customers is upper-middle-class russian consumers who were using the foreign amazon website. emily: a big amazon a story, amazon is being accused of lying to congress about how they used third-party data. it has been referred to the department of justice does this mean? -- justice, what does this mean? >> you had employees who were breaking amazon policy and using internal data tools to promote private label amazon products. when bezos and other amazon executives were hauled in front of the committee, they would not own up to it. they talk about the issue, they were being very amazon-like and never released any subsequent reports.
they lied, they clearly were not a upset with -- they were clearly not upset with their workers sticking their hands in the cookie jar. emily: redstone r -- brad stone wrote a couple of books on amazon. the ceo of a self-driving car company, how close are we to autonomous cars on the road? they will join us, next come on bloomberg. ♪
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kyle: it has been a really exciting year for us. in the last few months we did our first driverless rides on public roads and a major u.s. city. a first for any company. we have really ambitious plans from here to be in more locations and more cities and make a really great product for people. emily: given the context of dan's departure, how would you describe your relationship with mary, and whether you both are on the same page? kyle: the gm leadership team including mary have been really important and we share this vision. it is obvious if you look at the status quo we are not in a great place when it comes to car acted in the u.s. basically transitioning to an electric vehicle fleet across personally owned vehicles and rideshare.
we all believe autonomous rideshare as a way to get there really quickly. it is also a really big this is opportunity for a company like gm or any intercompany looking to get into the transportation space. emily: talk to us about cruise's origin, how production is going, and if we will see origin on u.s. roads. kyle: cruise origin is an amazing vehicle meant for rideshare. you have a lot of legroom, the seats face each other. it is optimal for things like shared rides where you might be in there with another person but we can drive down the cost. it is an awesome vehicle. we're doing testing with prototypes right now on closed courses. point early next year i think we may start to see the first production vehicles roll off the line and hopefully go into deployment. emily: why in your view is cruise's technology better than what others have to offer? kyle: it is hard to compare different av companies. the answer is when you can pull out your phone and use one of these products, first of all we will know who the head is in terms of deployment, but right
now you cannot compare them side-by-side. i think when you experience this technology, if it is anything like what our users say, it is like magic and they want to use it again and again. we intend to differentiate on the product experienced, much better than the status quo easing rideshare services. i think people are going to like it. emily: as i understand it, cruise has at least five permits from the dmv. you can transport passengers without a driver behind the wheel but you cannot charge a fre, or -- charge a fare. is it too complicated right now to make a lot of progress? kyle: we have done a good job with the california process. we are one permit away from being able to charge fares in commercial operations.
as of today we have people using the service so we are getting a sense for what customers are going to like. while today we are hung up on this permitting process, that is a very ephemeral problem that will go away. then you are just going to see this product start to appear in more places and it will be something people use more in their daily lives and become normal. emily: what is the next big market for cruise after the united states? kyle: we will see. the priority for us is even in san francisco, people have never seen a car driving around that anyone behind the wheel. there are people on the sidewalk to look at these vehicles and they are taking pictures, they are looking at them, they are excited about the future but it is also a little bit unusual. for us, we really want to make sure we nail this in san francisco. then we are really going to put a lot of ammo into this and scale it out quickly.
our goal is to make it work really well and really well here in san francisco first. emily: any updates on dubai? the world expo in dubai wraps at the end of the month and one of the big themes has been mobility. kyle: we are still on track for deployment there. it's a great opportunity to introduce the future of transportation to a city and government that is really excited about doing that. so we cannot wait. emily: the big question regular consumers have is when will self-driving cars, when will self driving cruisers, for example, be on the road and i can take advantage of it? how far out is that more mainstream reality? how many years? kyle: well, we're starting small. the important thing is to get this working, make sure everyone is responding well to it, and the product itself meets expectations. but right now if you live in san francisco you can jump on the waitlist.
we have already done hundreds of rides with members of the public, and these are out every single night right now carrying passengers around san francisco. so, it is here. it's here in small bits and pieces, and i think it will surprise people how quickly it becomes generally available and that many people live in work in san francisco get to use it. emily: all right. kyle vogt, ceo of cruise, and the cofounder. thanks for bringing your vision to us, kyle. coming up, president biden and crypto. the fine print in his executive order and what it means for the broader industry, next. this is bloomberg. ♪
emily: more now on president biden's executive order on crypto which sent bitcoin bouncing right back up. sonali: if you see bitcoin prices, more than 9% jump in bitcoin. a significant lift. if you look at a ethereum for example also getting a lift. about 6% or so. the one interesting thing to me is while those have gotten a lift, tether and more stable clients have not seen as much of a lift.
stable on the week. what are the safe havens here? we're going to bring in marty chavez on this, vice chairman at six street partners pretty a pioneer when it comes to technology and money. thank you so much for joining us. there is a lot of criticism about the executive order that came out of the white house. on the one hand it seems like a watershed moment but on the other hand is being criticized as short on details. what is your take? marty: we have talked about this topic before. i have been saying for a long time the best thing that could possibly happen to digital assets is the appropriate amount of regulations. sure the executive order does not give us a lot of detail. it mostly directed people to do more work and more study. we expect is a treasury paper coming that will have a lot more detail. i would say the root of my concerns are the stable coins. the stable coins are a form of currency peg, and currency pegs have not been successful.
they worked right up until the moment that they do not work. and there is certainly not a lot of detail, i'm not sure if there is any in the executive order about stable coins. to my mind, the appropriate regulation is stable coins, which i would see as narrow until we know what are the assets backing them and what of the mechanisms for those assets. that will be hugely important and until we have that i do not know how investable the whole space of digital assets is from my perspective. but once we have a foundation for the stable coins it looks like narrow banking and appropriate regulation, i think you will be be part of an immensely important long secular
trend. sonali: what about for the way investors have really been able to mobilize and raise money at scale when people have not been able to access currency in the traditional way? marty: first, let's start by acknowledging the pure horror of what is going on in your crane. sympathies not even the word for the suffering that is happening over there. to the extent that cryptocurrency can harshly mitigate some aspects of that suffering, i think it is huge. it shows you that there are ways to move money internationally with cryptocurrency that are interesting and do not require intermediaries. of course it brings up all kinds of concerns about the enforceability of sanctions and there is all kinds of discussions about russian wallets and the exchanges. and that is complicated. sonali: i am really curious about what you think about that and the role crypto plays here when there are sanctions and lots of governments around the
world trying to restrict the flow of capital. is crypto going to fix or make that worse? marty: so, restricting the flow of capital, sanctions, this is something to governments do. personally, to my mind, we've heard commentators say the u.s. is not playing bear with the dollar well. i do not know that playing fare is what the discussion is about when russia provoked and invaded ukraine. so cryptocurrencies do provide this mechanism. i think it is important as a matter of sovereignty to have the right amount of regulation. i do not like using deterrent cryptocurrencies. i do not think they are currencies. i think they are digital assets. currency is a different thing and this is something else i have been saying for a long time. digitizing the u.s. dollar in an appropriate way that respects identity, privacy, know your
client, anti-money laundering, sanctions regimes, that bolsters the fed's tools for economic policy, and the u.s.'s tools for geopolitical policy. that is hard. i'm getting that right is really important. to me it is not an option of do we want to digitize the u.s. dollar. that journey has to continue. it is important for u.s. leadership, it is important as a matter of innovation, and getting it right is extremely hard. sonali: to what extent is it a matter of national security? you have millions of people flocking to the chinese digital currency as we speak. i am wondering if the u.s. does not catch up and do the same, to what extent does that shift global financial powers over to china? marty: i worry about this a lot, sonali. the dollar status as a global reserve asset is not written in stone.
it has persisted for 100 years. not that the historical pattern needs to repeat but about every 100 years there is a different gold reserve asset. i have been saying for a few years now, digitizing the u.s. dollar in an appropriate way is essential. it is not just another formfactor. to me, that is like saying a starship and a bicycle are just two different forms of trench rotation, no big difference between the two. a digital dollar is a completely different thing than the inert paper dollar that we currently have. we have the notes and fed funds and fed master accounts. introducing another form that is just like the dollar but is digital, we don't need the paper symbolizing it anymore, that is really important. getting the details right, can you apply sanctions, if so, what is the process -- designing all of this, it has to be thoughtful.
it is hard and essential. sonali: what about the invest ability of digital assets until we get to that regulatory point you are talking about? are you comfortable? are your clients and rivals come to will getting into them? marty: many clients and rivals are comfortable. but when i am thinking about it from the six street point of view, we see the right amount of regulation is essential. i will give you an analogy. before airplanes were regulated and the safety of airplanes were regulated, you are taking your life into your hands every time you got on a commercial flight. so having rules we currently have about rebuilding airplanes every so often, how they have to be maintained. yes, it was expensive and cumbersome, but it was game changing. it is a precedent for the industry to be what needs to bp it i would say the executive
order is a great step along this journey of creating the appropriate regulatory framework. once we get that right and we get it right for stable coins, which are the underpinning of the crypto ecosystem, that is going to be a golden age. sonali: we are going to have to leave it there but we want to have you back as we finally see those regulations. marty chavez, vice chairman of six street partners. emily, back to you. emily: thank you. sonali basak there. coming up, beating estimates for fourth-quarter earnings results. but with the visa, mastercard, and paypal all halting operations in russia, what is ahead? jason gardner is with us next. this is bloomberg. ♪
emily: marqeta just beat even the highest estimates, jumping in post market-rate. this is the payment company also announced a new partnership with citigroup to help move commercial cards to mobile wallets more easily. big changes happening in the global payment landscape as russia's war on ukraine escalates. i want to talk about all this with jason gardner. we have seen visa, mastercard, paypal halting operations in russia. what is marqeta's exposure in russia and do you have any plans to the same? jason: thank you for your continued interest in marqeta. russia is not on our roadmap and has never been on a roadmap. we announced our partnership with citi today in 40 markets and russia is not one of them. so our exposure is pretty limited.
we have minimal volume within ukraine. however we operate in 39 countries today and a number of countries throughout europe, but no exposure today. emily: what do you see the impact of global uncertainty, rising inflation, rising gas prices, prices of jet fuel on consumer spending? how does that impact your outlook ahead? jason: there is a lot of pressure on consumers. and consumers pay for things, whether using buy now pay later, using cash app, using coinbase. so, we make money when consumers or businesses spend cards at the point-of-sale, whether online or off-line. different modalities, whether a plastic card, a tokenized card, an online card. they still have to buy things. so, will consumers continue to use buy now pay later, will they continue to use on demand services. we have a strong base of revenue. we ended the year at $517 million in net revenue. and we had that strong base of customers.
we will see if they continue to spend despite all the headwinds. emily: i am curious what you observed when it came to spending any fourth-quarter, and how that is shaping your thoughts on the outlook. obviously we are hopefully coming out of a pandemic but now with what is going on in ukraine it has cast a whole another cloud of uncertainty over the future. jason: there is a lot of uncertainty. the fourth quarter by now pay later really was well beyond our expectations. it was 50% growth even from q3, which would kind of expect because we wanted to see -- we actually did a survey last year surveying people in both a u.k., u.s. and australia, and found 51% of people have used the payment modality before. we do not know if it will change. you are seeing a lot of the same things unfold every minute of every day in regards to ukraine and the war, also what is
happening in europe. we are heading into a lot of uncertainty, especially this summer. but again, we have a strong base of revenue and customers who are looking to grow their businesses using our technology and our tools. we're going to help them go into even more and more geographies and we are excited about doing that. but again, there is a lot of headwinds for not only consumers but businesses as well. emily: this new citigroup partnership, how much could this impact revenue? jason: our strategy was to start with comms disruptors. companies like doordash and instacart and affirm and klar not.
that is where we had the dna match with developers who are building on top of our platform. then went into large tech giants, digital banks. they are very slow to roll out. we would expect over time they would take more and more advantage of our platform. this is just our foot in the door. tokenization as a service is something we are doing with jp morgan today. now we have announced within 40 markets. that takes time to build. this is a foot in the door. we want to do more and more with large financial institutions and building that trust through us working through them directly and our technology will help us go and do that. emily: speaking of a foot in the door, how are you looking at web 3.0 and how is that driving growth in your business? jason: we have been doing a lot in crypto as we have talked about in the past, especially in our partnership with coinbase.
that is really our first step. the idea of decentralized finance, or defi, for years i have been talking about using things like blockchain to move transactions. i talked about this in my remarks i just made in our q4 of 2021 earnings call. visa and mastercard have interconnected the world for companies that i wanted to accept payment cards. that is very significant, that is a very deep moat and a tall wall for companies that want to go in and build that cross-border capability that they have. so, i think this technology is here to stay. we believe in it, i believe in it personally. i spent a lot of time with companies in the crypto web 3.0 space, centralized finance, how we are going to go build. it is just going to take time. it may be a decade from now we will see the changes. emily: jason gardner, founder and ceo of marqeta. thank you as always for stopping by.
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