tv Bloomberg Technology Bloomberg June 10, 2022 5:00pm-6:00pm EDT
>> i am emily chang in san francisco this is "bloomberg technology." coming up the next hour we are live at the port of l.a. after fiery comments from president biden on soaring inflation and what because the exploitation of oil companies that is spiking gas prices. developing, tesla is asking shareholders to authorize a 3 for 1 stock split and there a surprising departure from the board of directors. a culture clash at disney, we will talk about the future of the annotated -- the entertainment giant under a ceo. >> katie, there is surprisingly high cpi numbers, seems to be
dragging everything down. >> nowhere to hide today, when you look at the s&p 500, down almost 3% on the day, that is contributing to its worst week since january, we started this week out on a good note, did not matter because the cpi numbers you mentioned. both on the headline number and on the core number. what is interesting to me as he look at the yield over your numbers, you have a 2.6% percentage point gap. that is the widest spread since 2008, the widest divergence in those numbers, the message just that inflation is very hot today. because we have the hot inflation numbers what stock fell the most, it was the discretionary stocks, the travel stocks, amazon and netflix taking a hit, even though we got some news about the cdc
loosening testing requirements, it did not help on a day when we learned that inflation was 8.6% in may. emily: i want to get back to those inflation numbers now, president biden paying a visit to the port of los angeles and talking about surging prices as inflation hit a 40 year high, including some of the biggest jumps ever in gas prices. the president going after exxon, seeing record profits, and also a record rise in share price. take a listen what the president had to say. >> exxon made more money than god this year. by the way, nothing has changed. another thing wednesday about oil companies, they talk about how they have to have 9000 permits to drill. they are not drilling. why are they not drilling? they make more money not producing more oil. emily: joining us now from the
port of l.a., bloomberg's ed ludlow. walk us through the president's message he got pretty heated. >> he did, it was interesting, he started at the port of los angeles, the work they have done the coordination between the different tentacles of the system, the truckers, the operators, the shipping companies. he also talked about the broader problem around the supply chain, the impact of the war of ukraine, he had the ire for the oil companies, he also talked about ford shipping companies -- foreign shipping companies. retailers in this company -- country, walmart, target, amazon pay to get good from a to become he says those rates are high. the bloomberg terminal ic since september shipping rates have come down 27%, he did this rapid
spray of look at what is happening. the under lying message things have improved. emily: let's talk about the role of technology, tech companies have been acutely impacted by the supply chain delay. where does this mean for tech? >> we are a tech show, we talk about the cutting edge of drones and artificial intelligence, etc., in this case is the lack of technology, a very manual process. a container gets lifted off a ship by a crane, puts on a truck cap or gets put on a rail. the message i am hearing over and oil -- over from officials is that rail has let us down. there are no real carts to meet them, they are left idling. it is friday, let's and on a positive, i think the -- they
are happy about the administration getting out there checkbook, putting money into the port system, billions of dollars to modernize, to have software to get all these folks talking to one another, to prevent luis on the last 18 months happening again. emily: ed ludlow, thank you we will see you later in the show for the president push for the electric car and the role of tesla plays and all that. i wanted continue the conversation on the broader market inflation, the ceo of oceanic, we think of the note that the president struck today? >> i think there is a lot more to inflation includes monetary policy and demand pull and cost push, the manufacture demand, taking a trillion dollars out of the economy for covid created a virtual demand, supply
diminished. things that were shut down during covid have not restarted and may never restart. manufacturing demand now decreasing, the combination is leading to inflation at a runaway pace right now. the fed has a lot to do. emily: are you saying the president should not be blaming exxon, there are other factors at play? >> there are deftly other factors at play as far as exxon was or any oil companies for that matter. investment in energy over the last eight years, 10 years have not been what they should have been. it has been transitioned over to green projects and other things. at this time, when there is a war in russia, we are basically reduced by 3 million barrels a day, the opec increase is coming in july and it is a drop in the bucket. we will feel that as a country. emily: how long do you think
this inflation and this general market unk will be with us -- funk will be with us? >> that is one of the toughest questions, i perceive my markets, private markets, existing at least through the end of the year, tumultuous and choppy at best. recovery starting sometime in next year. emily: let's talk about what it would take otherwise get inflation under control, other other things he inflation could do in you view to alleviate the pressure on consumers? >> that is a tough one, i think they are using every tool they can to moderate inflation. the fed is using tightening and trying to manage the workforce and employment numbers. it has become a bit of a whipsaw right now. inflation is obviously getting very tough. grocery store $10 a gallon in california, gases seven dollars
-- gas is seven dollars. emily: you are also a venture capitalist, i'm curious the impact you are seeing on the private market. we see what happens in the public market, we are hearing companies having trouble raising money, doing down rounds, slashing valuations, layoffs, hiring freezes. what do you think the fallout of this period of time will be on the private copies there were living high on the hog for a while? >> i saw this in 2000 and 2000 and eight -- 2008, to me it is like a california fire, horrible, horrendous, terrifying. a lot of companies will be absorbed and others will disappear. at the end, typically the situation like this creates a lot of new growth. in the private markets, -- the
public markets are a leading indicator for private markets. a lot of valuations are pegged off of public company valuations on future value. if public company rations decrease significantly, the future value of the few private companies that are vying to be number one, they are all going to take a huge hit. like you said, we are seeing difficult challenges with financing terms that are changing, the gradation preferences that are increasing from one to two to two to three. people will be laid off, it is going to be a rough run for everyone. emily: if we are comparing this to a california wildfire, what is the wreckage look like when it is all said and done? >> to be positive about it, think the wreckage looks like a lot of innovation. a lot of ideas around energy
production. around ways to manage costs and cash flow. for individuals to get through this, it is deftly a time to tighten your belt. cash is king. it is a tough time. emily: tim sullivan, ceo of oceanic, that you for giving us your view. >> thank you. emily: tesla shares are up in late trading as a plans for a 3 for 1 stock split. there are other come these taking similar steps to make ownership more accessible to retail investors, the oracle founder will step down from the tesla board, will have more this developing story in the coming hour. coming up, new data on the rise on luxury goods, we will ask
emily: stopping counterfeit luxury goods, they have a leading role in this and new data on the rise of counterfeit items flooding the market, joining me is the ceo, scott, great to have you with us, have any more of these things are flooding the market now? >> taking a step back, looking at the trends for consumers, they are inspired i what they
see with brands, brands are going more directly with the consumer there also releasing product, the best product and scares quantity, it is very difficult to get. consumers are going to market places to get products they cannot get in other channels. stockx has been a marketplace to connect buyers and sellers and we have authenticated more than 35 million products have gone through our grist authentication project. it is a service we provide -- getting access to great authenticated products and brands. >> what pigs are you seeing more of? -- what makes are you seeing -- fakes are you seeing more of? >> those products range from sneakers to apparel,
accessories, handbags, across a rod category of goods -- broad categories of goods. what is interesting when you peel back the report that we put out this week you will realize the most common thing it is rejected is a manufacturing defect, could be the glue, stitching, a damage product they use product. essentially we are looking at that and to end experience and want to be able to deliver for that customer as a legitimate brand experience that they quite frankly expect from us. emily: obviously we know what stockx does to keep fakes off the market, do you there is something that should be done to prevent the black markets from flourishing? >> if you look at where the
consumer is today, going to places where they cannot find product, going to other markets that range from social networks to peer-to-peer marketplaces. the challenge with these marketplaces is there is a lack of quality, no certification around authenticity, epically is a bad user experience. when we started we created the highest standard among the industry for marketplaces. quite frankly revolutionized the process to authenticate every single product sold on our platform before get to the consumer. the challenge, quite frankly, the charged marketplaces is to stand up for your consumer, authenticate the product and stand by the product being sold on your platform. taking response ability as a platform is what we do every single day. emily: you have been in the midst of a ongoing legal battle
with nike, they are suing over an nft series including nike, then selling counterfeits, it is your response to this latest salvo? >> from a legal perspective we believe the original case has no merit. the additional amendment equally has no merit. we have the right to use any brand name or trademark when selling products, that is well-established under current law. as it relates to the experience, the experience from the most recent claim is backed up by the facts that we authenticate 100% of the products sold on our platform. we have a really symbiotic relationship with a great brand releasing a great product. stockx you can see everything will day what this great product is worth and what can be traded for. we provide an economic
opportunity for sellers who hold onto those assets. the claim that we are not doing that is patently false. most poorly for us, it really about ensuring that user experience. emily: if that is the case, what went wrong with the relationship with nike? i assume you have to read -- maintain a strong relationship of a lot of brands. >> if you look at the platform itself we are intermediaries between sellers and buyers. sellers are typically consumers, we have relationships with brands that police products and sell products, a vast majority of what transacts on the platform is not coming from a branch directly come as coming from consumers to give access to that product over time. we have partnered in so many different ways with the industry on counterfeits. in fact, even nike itself is come to us saying we are among the highest standards in the marketplace, partner with us,
partner with homeland security, other councils participating in preventing counterfeits from getting to market. we work in partnership of the industry hold ourselves to that standard. >> spend a lot of time at the new york stock exchange, and curious what unique perspective that gives you on the market tomorrow u.s. -- turmoil you are seeing now. was that mean for stockx that we were expected to see public soon? >> everyone is watching the headlines in the markets today, for the market overall the headlines are rarely tomorrow's history. we will get through this time, a very difficult time for the consumer. for us specifically i cannot
comment on rumors or spirits -- speculation about us, we are 100% focused on executing our business, growing our business during these challenging times, expanding to exciting territories to attract more consumers to our platform. >> you sell collectibles like trading cards, figurines, talking to us about your plans for non-shoe assets and the plans you have for gen z and millennials in the midst of a downturn. >> in 2016 we started with this idea of creating a real-time marketplace for high demand consumer goods, started with speakers and our second categories watches and and bug -- handbags. we are now in collectibles. it is all part of a big trend that includes digital assets, physical assets, the next generation of consumers, jen z and jan a, are looking at these commodities is a place to invest their time, energies, passions.
now you have opportunity to turn that passion into an economic opportunity. it is a big trend across all the things that trade in our platform, these are considered assets by our set of consumers. emily: scott keller, ceo of skylark -- stockx. coming up, why the tas tv maker is eyeing a -- why tesla is eyeing a 3 for 1 split. this is bloomberg. ♪
alphabet, he worked for amazon, giving the stock a bit of a jump when they did their own stock split. where they doing it? >> they did a stock split a couple of years ago that was wildly popular with the retail investors, fans of the company, love it. he wanted do it as much for retail investors as well as his own employees, to want to give stock to employees as part of the compensation last stock -- it was wildly popular anyone to do it again. emily: larry is stepping down from the board, it is interesting because he is one of the backers for elon to buy twitter. >> i was surprise, is bound the board since late 2018, and emperor -- and independent
director, he will not be reelected, they will shrink from eight members to seven. we know that he spends a lot of his time in hawaii, maybe he did not have time to come to all the board meetings. he has been an instrumental player on the board. obviously he is backing elon's bid to buy twitter i've not sure what is going on there. emily: we were just covering it on bloomberg's big take, houses change the -- how does this change the concentration of the tesla board? >> this means the board shrinks. seven people is pretty small for a company tesla's sides, most boards are going the opposite direction, adding more diversity. tesla is shrinking even though it is a massive company. emily: we will continue to follow your reporting on this.
"bloomberg technology." this week, the biden administration announced new steps to build out the first ever national network of 500,000 electric car chargers along u.s. highways and select neighborhoods. this is a key piece of the bipartisan infrastructure law. ed ludlow joins us now from l a, where the president spoke just a few hours ago. talk about these new charging stations and how much this could supercharge electric car ownership. ed: this is a case of build it and they will come, right? biden laid out $7.5 billion for charging infrastructure, and it was very specific in the rules. they basically want an america where standards are the same. it does not matter if you drive a tesla, ford, or nissan, you should be able to drive up to the nearest service station,
plug in your ev and go. there are also a number of private sector players. electrify america, charge point, and they have gone about along with tesla building out these networks relatively quickly. the discussion around adoption is still a debate because preorder numbers, the f-150 lightning, for example, or even the backlog you see in tesla shows there's demand in the united states, but the backward looking data speaks for itself. basically, ev adoption is just a few percentage points of new car sales. that's why i say it is a question of build it and will they come? emily: something really curious -- we have seen a rift grow between president biden and elon musk, who you would think is a
natural ally in this administration and the push to electric cars. why is this? why have they not been able to form some sort of alliance? ed: you know, i remember vividly when i sat in l.a. at ricoh conference and elon musk sat in a chair and said that president biden is leading the "russian revolution" in electric vehicles. he has known since early in the year -- we have known since early in the year that elon musk and the president do not have a direct relationship. when president biden talks about the electrification movement, he name checks ford and gm despite tesla dominating the sale of electric vehicles in this country and globally, frankly, but the other side of the story is elon musk has an unusual way of doing things.
tesla is not a union shop. it does not have unionized labor. biden is the president of the labor movement. he's very open about that. elon musk is the world's richest man and he himself is incredibly popular and we will not be able to quantify it, but it will be interesting as we approach november and the midterms. if elon musk takes some voter ship away from biden, that's a question i will be asking. emily: thank you. appreciate your reporting. meantime, we continue to celebrate pride this month of june. bloomberg is focused on a wide range of topics focused on what equality means to the economy and investors. we are speaking with the founder of a lab which uses ai driven research to adapt inclusion. you and i met when i was
researching my book, "brotopia ." how can and have been driven research address some of these problems? >> let's be honest. we humans could potentially solve these problems, but ai is an incredibly powerful tool. i once had an opportunity to scratch an itch, and we built -- we went out, analyzed websites of 50,000 different companies, look at quarterly reports, analyzed the photos and the board and the leadership team and found the single biggest predictor of wage gap within a company all around the world was the number of male faces in those pictures. the more women, the lower the wage gap.
a pretty unique finding that took one day, and it turns out, one person. in that sense, and i can be an incredibly powerful tool to explore questions of inclusion, though there are some pretty notorious stories of it going in the wrong direction. emily: tell us a little bit about your personal story and this perspective you have, unlike many other people, about how people in silicon valley, for example, are treated differently. >> it is a funny thing. when i started my first tech company, we were going out, my wife and i together, to try to raise money, and i remember this one case, the first time we had an entire partner vote from a venture capital firm, and this one guy, happened to be the oldest guy in the room, no question at all, literally just patted me on the head as i left
the room and said you should be so proud of what you built, and he ended up being the one person who voted against funding. and maybe this experience could happen to anyone. not just women or not just married women, except this was not actually my first company. my first company was years before, a film company, and i was a man, and in the decade in between, i had gone through transition, and let me tell you, it was extraordinarily more difficult raising money as a woman despite the fact that in the intervening years i had gained a couple of phd's. in the years since that, i had founded six companies. i've had five of them acquired. we had a good business plan. i truly believe in what we were trying to build, but people could not see it. if you have ever wondered if
this truly a difference between men and women, gay and straight, black and white, as someone who has seen both sides, yes, silicon valley can be a wildly different experience. emily: as someone who has seen both sides and perhaps has one of the most decorated resumes of anyone in silicon valley, how much progress do you think has actually been made over the years? we have had the #metoo movement, the black lives matter movement, the pandemic and concerns about backsliding in the pandemic. do you feel like we have made significant steps forward or not? >> i'm a hard number scientist in the end. one of the projects we fund is called the inclusion impact index we collect data and look at questions like -- do lgbt
founders raise as much as straight founders? how many jobs are created by women starting companies? what we clearly saw, for example, during the pandemic, is funding of nontraditional founders -- read women, ethnic minorities, lgbtq -- went down substantially. some of that is because many were starting companies for the first time and funding for new companies dropped with the uncertainty, but the drop for someone like me was pronounceable, so there's clearly some backsliding going on, and that kind of data is incredibly useful. i'll tell you, i have never talked with a vc who wasn't convinced they were not the most rational person -- who wasn't convinced they were the most rational person in the entire world.
emily: we have been talking about the future of the metaverse. who knows if it happens, but a number of companies are certainly trying to push us in that direction. do you see this presenting more challenges or opportunities when it comes to creating a more equal world? >> let me be blunt -- it is both. we look at the new research on how incredibly connected we are, how easy it is with my phone or online search to collect any piece of information i want to get, and paradoxically, it is actually slowing down innovation. independent of diversity, technology seems to make us explore less, and that's deeply problematic, but we can fight against that and really lean into technology. for example, technology i built for my son who has autism, to help him understand people that do not have autism.
without curing him. he already has a superpower. he sees the world differently than people around him. he just needs a little help understanding people. that is what can help, helping us understand each other, not making us all boringly the same. emily: areas that we do not shed enough light on, what should we be talking about? >> i got to tell you, as mentioned in your earlier interviews, board representation. i have never gotten so many inquiries. everyone is calling up and asking if i will join the board, but i think it is performance. what we really need to do is see that there is value --
inarguable value -- in having people that think differently about problems. gender, race, sexuality are certainly not the only ways in the world people think differently, but they are powerful. for the last year or two, we have been looking at this fascinating place in neuroscience, why it is our brains process different people differently, and we just need to accept in the end we are human and imperfect and sometimes it will take extra effort to connect with someone who is different, which our brains are just not set up to handle. emily: you sharing your perspective with us today is truly a gift. thank you for joining us. >> thank you so much. emily: coming up, we will talk about crypto and crypto hacks specifically. our crypto report coming up next. this is bloomberg. ♪
emily: it is time now for our crypto report. joining me now is the ceo of a company which provides monitoring and analytics for blockchain communities. thank you so much for joining us. talk to us about the problem you are trying to solve. >> we are trying to make low-paid networks reliable so the web three world can be built on it. we've gotten used to the
resiliency of telecommunication networks. what is very important is because we want to build applications for web three, applications that require high operation like the next zoom, the next netflix, we need a blockchain that works. we want anyone who runs infrastructure to be able to run it reliably. emily: are attacks on the blockchain more serious than they would be on other networks? >> i think they are. i think the assets that exist on the blockchain networks are much more valuable than video or
voice. if we are putting our banking system or new assets, digital assets on those networks, i think with security and performance are much more important, and i think we are going to see the highest [indiscernible] than anywhere else in the world. just to give you an example of what happens, when there is an outage, everyone runs some kind of block and monitoring on notes, and what happens is that everybody sees that their note is down, and they try and figure out, is if the node, the network, the occupation? nobody knows what is going on exactly, so everybody goes on
social media. they go on twitter, going to scored -- go on discord, and they start asking each other if they are seeing the same thing, and then there is an long process of coordination for bringing a network back in order. these are operations in the early days that we are experiencing now. we need infrastructure so that we can have community monitoring and visibility into the network and set -- and so that those outages can either be prevented or when they happen, we can quickly recover. i think we are seeing things as we build of infrastructure, we start -- as we build up infrastructure, we start becoming less and less secure. emily: what is your read on where this is all headed? >> definitely the markets are in
turmoil and we are getting to a bear market, but i think this might actually be a good thing. every time we have seen the past during bear markets, there's a lot of infrastructure being built. blockchain's are being built and moving further along. investors also become much more focused on the value of what is being built rather than on financial engineering. i think that is a healthy kind of pace that we go through and we have seen that in the past. emily: thank you for joining us. coming up, a clash of styles over at disney led to a veteran's dismissal, and it took the ceo just seven minutes.
millie: peter rice has one of the longer resumes in the entertainment industry, but when his time at disney came to an end, it was uber in seven minutes. that's how long it took disney's new ceo to fire the tv chief in what is being called a clash of styles. at entertainment company. -- at the entertainment company. >> the tenure of bob chapek as a ceo is ultimately a successful
one -- this is something we will see if the the tenure of bob chapek as a ceo is ultimately a successful one. it could go either way at this point. people say this is a guy with no people skills. emily: chad peck has been facing some pretty tough and public battles. what does this say about his leadership at this point? >> what was bigger news this week then peter rice was the fact that disney florida directors put out a statement saying that jpeg -- that chapek and his team have their full support, and that is significant. this guy has definitely been under fire. stocks down by 1/3.
he had his municipal district taken away from them. we've had plenty of problems before that internally, not popular, moving a lot of employees to florida. scarlett johansson lawsuit last year. he's had more than his share of struggles. emily: shares are way down. how long do you think the board will put up with this? >>'s contract runs another few months. given the statement he just put out yesterday, he is certainly safe this year. it is coming at a time when netflix has those subscriber numbers. the whole media sector is down, so disney is not alone.
he promised that the second half of the year will show even stronger subscriber growth than the first half, so more data points to come. emily: i know there has been some speculation of bob iger coming back, which is ridiculous. just curious what he is up to. quincy has not publicly commented, but people have been trying to read between the lines of some of his public statements. people have argued for example -- he tweeted out -- retweeted a statement from president joe biden on the florida schools bill. he has also commented publicly on the decision saying
essentially it was a no-brainer for disney to oppose the bill, something that chapek had initially been reluctant to do, so in a way he has reluctantly offered his opinions on what is going on. emily: we will stay tuned for the next chapter of this very dramatic story. that does it for this edition of "bloomberg technology." my colleague david westin is coming up with "wall street week." former treasury secretary larry summers has some harsh words for the fed, calling them delusional on inflation. and don't forget to check out our podcast. have a wonderful weekend. this is bloomberg. ♪ another crazy day?
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