Skip to main content

tv   Tech Check  CNBC  August 9, 2021 11:00am-12:00pm EDT

11:00 am
moderated in the last month, remember, the incentives far lower than they used to be now down year over year more than $2100 morgan, back to you. >> such a key conversation to have, especially as we await another inflation reading this week with cpi on wednesday phil lebeau, thank you for joining us a quick check on the markets, it is a mixed picture with the nasdaq higher the s&p and the dow lower. that will do it for "squawk on the street." "techcheck" starts now good monday morning. welcome to "techcheck. i'm carl neequintanilla with jon fortt and deirdre bosa stocks like riot, coin base and microstrategy following suit we're going to talk to tom lee
11:01 am
in just a moment as does the ceo of binance, washington wakes up to crypto's growing influence. and that's where our feed begins this morning and what has become the sticking point in that trillion dollar infrastructure bill elan mui explains. >> reporter: the industry is pushing for explicit, new irs reporting requirements and in intense debate over the current language applies to miners and software developers and that's stoking outrage among some of fintech's biggest ceos history will not be kind to any politician who tries to block americans access to new technologies, americans have a very low tolerance for taking away our rights and harming economic growth. twitter ceo jack dorsey wrote this bill is so many issues, and he said one of the amendments from senator mark warner only makes it worse meanwhile, elon mosquusk got involved too this is not the time to pick
11:02 am
technology winners or losers there is no crisis that compels hasty legislation. and rob portman who helped to write this bill, said he gets it >> in particular, we want to be sure miners and stakers and others now or in the future who play a key role by validating transactions or sellers of hardware or software for digital wallets or note operators or others who are not brokers are clearly exempted >> reporter: now the final vote on the infrastructure bill is scheduled for early tomorrow morning, but republicans and democrats are negotiating right now to speed up that process in exchange for the chance to make additional changes to the bill, including on a language around cryptos. guys >> so a lot of these big crypto advocates are making a lot of noise talking a big game, but what is the alternative here you look at markets like china and india and they're not any
11:03 am
friendlier toward crypto you could argue they're a lot more stringent what is the alternative. have you heard anything threats from the crypto industry about what they can actually do or would do if this bill passes as is >> yeah, there is really not much that they would be able to do i mean, one of the reasons why this is such an important piece of the legislation is because it is a significant pay for this trillion dollar spending bill. so this provision is expected to raise about $28 billion, and increased tax revenue because people will be paying more taxes since the irs has more information about them and the treasury department is really concerned that a lot of the gains in crypto are going untacked because they simply don't know about it. so that's leading to a dramatic loss in revenue that really the administration is counting on to be able to pay for some of its ambitious spending plans. >> how much of a surprise was last week's groundswell, i guess it is fair to call it, over this issue? it reminds me a bit of the net
11:04 am
neutrality blowback from a couple of years back that it seemed to me caught some politicians by surprise and the social media fueled nature of it. >> so it was no surprise that treasury had been -- had the authority to do this and that this would be part of a bipartisan infrastructure bill, but i think there was concern around the actual details of the language once it got released. rip, the text was not released until monday of last week. that's when industry got a chance to dig in and make their case now, the administration would say that the way the language is currently written is just fine it doesn't sweep up all these players who have only bits and pieces of information around who holds all these different cryptocurrencies, but there is concern that when treasury actually writes these regulations, if this law -- this bill does become law, that that could create some burden on different parts of the industry if the language is not clear clai
11:05 am
clarified at the outset. >> we'll see whether or not we need to start to turn our attention to the house side as well thanks sticking with the markets, from stocks to bitcoin our next guest says he expects to see an everything rally into the end of the year as the recent spread of covid hopefully decelerates. joining us, tom lee, fund strategy global adviser. great to see you good morning. >> great to see you, carl. >> so you've been talking and keeping your eyes peeled last couple of weeks for any sign that covid infections are beginning to peak. you're pointing to other models this morning but it is tentative and you even point out sometimes on these charts you got to squint to see it can you describe your level of confidence in this call? >> it is actually growing, carl. one of the things that really helps us understand if covid is peaking is looking at the seven-day rate of change are cases increasing over seven
11:06 am
days ago and our data science team looked at almost 22 counties in florida, and i think every county except for one was seeing a slowdown in that seven-day delta. so even florida looks like we're going to have a peak in cases pretty soon, probably within the next few days, and then, of course, as you know, a lot of the forecasters, but the one most important, is forecasting the u.s. might peak sometime this week. i was encouraged by dr. gottlieb's comments there isn't likely to be a fall wave that's another important takeaway that this is the biggest wave we could see in the year, and if it peaks, we're going to have an everything rally, a big one. >> yeah. and you point out, especially in florida, where we're looking at zero mitigation to have the wave roll over would be impressive. you also looked at the average waves of recent months in countries like india, and the uk, you centered in on a period of about 45 to 50 days at which
11:07 am
point these things tend to peak. do you think the market can start to digest that as a baseline for any future waves? >> in our client conversations, that's not their central thinking i think clients are so nervous about the delta variant that they're only going to believe it when they see it but you're spot on, florida is about, you know, 40ish days into its surge and the uk peaked after 45 days, india was conseque coincidentally around 45 days. it would be very curious but very encouraging and a positive surprise for markets >> you mentioned the possibility of an everything rally i wonder how you square what we saw from big tech earnings a couple of weeks ago, aside from alphabet, which did quite well we had a number of beats on the top and bottom line, relatively strong guides, but those stocks didn't rally, which made me wonder whether they have given
11:08 am
much of what they can give for the year. >> that's a great question i mean, q2 earnings are a little confusing because we know that delivered results are strong, but i think investors are still having the same covid and macro overlay that, well, while there is uncertainty about global reopening and the spread of the virus and the safety of the vaccines and the efficacy and vaccine resistance so many things overhanging the outlook that i think investors would have been selling the news on q2, but i think if covid is retreating in the u.s. and we don't have a fall wave, we're going to have a really big risk rally and, again, i think even today's bitcoin rally is really strong evidence of this everything rally >> and speaking of that bitcoin rally, are you still holding your $100,000 target for bitcoin by the end of the year what do you attribute the recent rally too and what gets it there? >> well, i think it is a great question and might make an inductive observation that there has been a huge regulatory and
11:09 am
legislative assault on bitcoin and digital assets from both china and the u.s. and yet bitcoin has managed to not only break out of the $30,000 to $40,000 range but today it is hopefully going to close above the 200 day moving average. that's a really big risk on signal that kicks in rule number three for our crypto, you always buy bitcoin had it breaks above the 200 day moving average the average six-month gain is 180% i think 100,000 into year end is pretty reasonable. >> interesting, tom, to hear you double down on that. you've been a great source of high frequency data and insight which is really valuable to a lot of your subscribers and viewers. good to see you. thank you. >> great to see you guys and as the crypto industry turns their eyes to washington, one of the industry leaders facing its own growing pains, binance, the world's largest crypto exchange, said the u.s. chief was stepping down after three months on the job on
11:10 am
friday, citing differences overstrategic direction. also on friday, binance halted futures trading in hong kong joining us now, founder and ceo who serves as chairman of the board of binance u.s great to have you with us this morning. brian brooks, former regulator, he was seen as key to your u.s. expansion, also getting in line with compliance. what were those differences over strategic differences where you didn't see eye to eye? >> so, yeah, thanks for having me here. i can't comment on the specifics. i think brian did great work nothing regulatory related we wish him the best of luck on his future endeavors some differences in opinions on the matters. we wish him luck. >> okay. without him in place then, what do your u.s. plans and expansion look like? he was a key piece, a former regulator of your expansion, especially when you're seeing this growing crack ddown around
11:11 am
the world on the platform? zblim >> i'm chairman of the board, not involved in the day to day operations i'm knot in the communication, t cetera the general strategy all over the world is to continue to hire ex-regulators to augment our team, continue to grow the team very aggressively, and also we're looking to diversify our table. we're doing runs of fund-raising for most local licensed entities including in the u.s we're bringing more structure, more open governance on to -- more proper governance on to each of the entities. >> right, but, cdif you're not going to go into details about why brian brooks left, does that make it more difficult your strategy is to hire more regulators around the world. if your highest profile one left the platform, where does that
11:12 am
leave you? >> i think people join companies and leave companies all the time it is unfortunate he left. so but it doesn't mean that just because one person left the company, doesn't mean the company can't hire other people. i think we're continuing to beef up our compliance team's senior ex-regulators, people who have strong compliance background all over the world we have an announcement coming out. so, yeah, just because one person leaves the company doesn't mean we can't hire other people. >> okay. let's talk about leverage. you recently reduced the maximum leverage on the platform for futures contracts to 20 times from the previous peak of 125 times. you said that it was in the interest of consumer protections. what were you seeing that made you worried? >> to be honest, this is one of the areas where regulators around the world are very concerned. they pay more attention to this area and we just saw, look, and to be honest, the 125 is more of
11:13 am
an advertising number. when you go 125, you have very low allocation you can only do that for a couple hundred dollars, to be honest beyond that amount, you don't get that leverage. so it is really more -- to be very honest, it is more the -- on digital cameras advertising ef ef effect very few people actually use those. so we thought, look, with a lot more regulatory structure coming to this industry, just thought that wasn't really necessary anymore. >> so speaking of regulatory structure and perhaps some legal risk, give us your thoughts on this u.s. infrastructure bill, not so much what might end up happening, through it, because it sounds like even senator portman is taking a step back, but how prepared is binance to handle various different legal
11:14 am
requirements that might come down in different jurisdictions, requiring you to keep track of who is transacting, how they're transacting for tax reasons. is that a big potential burden for you and how are you preparing for it >> it is -- for us, we have been preparing for this for quite a while. and we have just launched the tax reporting tool through the api. so you can connect your binance account to any third party you wish the data flows out based on the user's choice. we have been preparing for this type of changes for a while. and i think having more regulatory structure in this industry is very healthy because now we know what to do before, like, before, four years ago, there was much less clarity on the regulatory space. and they didn't know what to do. once we know what to do, our strength is on -- in our execution ability. once we know what to do, we can execute very quickly. >> so for software developers,
11:15 am
is there an opportunity here for someone to provide them with the tools necessary for this kind of tracking and documentation or do you think on a global basis for some of these players that would be an undue burden >> to be honest, for newer smaller players, it is higher burden than for an established player like us we have a decently large team and we have always been able to execute very quickly so for us it is -- to be honest, for once industry matures a little bit, when for the bigger places, for the bigger players it is typically an advantage to be very honest but we don't -- but at the same time, look, the smaller place get less scrutiny from the regulators today they may be able to get by for longer regulation will be applied evenly across the board. for us it is an advantage. >> cz, quick question on institutional demand we did a piece last week about jpmorgan, according to our reporting, quietly offering
11:16 am
access to some high net worth clients to crypto funds and we called it a sign that wall street's years long reluctance to deal with crypto is over. would you go along with that >> you broke up one little bit wall street -- i missed that word >> i just wondered, jpmorgan offering some access to crypto to high net worth clients. is that a sign that institutional demand is truly turning the corner of sorts? >> absolutely. so we have seen family offices coming directly to us, not through traditional financial institutions we are also seeing traditional financial institutions coming to us with institutional demand so i think that's coming and many of them require more tools, et cetera, so i think that's definitely coming we have been preparing for that for quite a while. i think this shows that the crypto industry is maturing. >> right, cz, you said you have
11:17 am
been preparing that more regulation is healthy. you want to be more compliant. when it comes to a stable coin like tether, specifically, which plays a huge role on the binance platform, there are lots of questions and even an investigation into its backing and disclosure would you support more disclosure from and around tether and would you be prepared to reduce its role over, say, usdc, which is seen as more transparent and having better disclosures? >> so, to be honest, we -- so we are very agnostic towards what users choose we are a neutral platform, we provide different assets to different users. users can choose what they want. having more clarity is -- transparency is always welcome that's always a good thing and to be honest, of all the stable coins, two stable coins, also issued by paxos, they have much stronger transparency and
11:18 am
reserve backing by the u.s. dollar so we encourage transparency this all of those places and i think higher transparency is great >> you say you're agnostic, but as i mentioned, tether is under investigation by the doj and that could have major ramifications for your platform. it is the third most popular cryptocurrency by market cap do you have any precautions in place if confidence crumbles in the stable coin? >> so, yeah, to be honest, what we need -- whether -- what we guarantee is we have 100% reserves we have 100% of it, whenever a user wants to withdraw, we have that certain regulations, certain investigations may impact a certain project, a certain coin and i think we want to make that as transparent as possible and thanks to you guys, the industry is very transparent and it doesn't really affect our platform we make sure when the users want
11:19 am
to withdraw, they have it. when the users want to sell it, it is on the market. it doesn't impact our platform per se we don't choose winners and losers. >> cz, thank you very much for being with us. lots of great insight. hope to talk to you again soon. >> thank you for having me >> the street is split on tesla with the stock, stock in neutral year to date that's next. a big hour of "techcheck" just getting started. it's another day. and anything could happen. it could be the day you welcome 1,200 guests and all their devices. or it could be the day there's a cyberthreat. get ready for it all with an advanced network
11:20 am
and managed services from comcast business. and get cybersecurity solutions that let you see everything on your network. plus an expert team looking ahead 24/7 to help prevent threats. every day in business is a big day. we'll keep you ready for what's next. comcast business powering possibilities. i think you're going to like it here. umm, why is everyone... throwing things at me? look, as cfo it's my job to be ready for whatever's next. that's why i have my finance team, randomly hurl things at me. it's also why we use workday. it gives us insights, so we quickly pivot our strategy, people, planning, you name it. sorry, sir. i will aim straight at your next step. see that you do. would you like some coffee? workday. the finance, hr, and planning system for a changing world. ♪
11:21 am
it's taken a lot to get to this moment. ♪ grew up at midnight - fothe maccabees ♪rld. dreams are on the line. you got this. refresh... it all, comes down, to this. ♪♪
11:22 am
let's get a gut check on tesla. shares are rising, better than 2% the street is a little bit split on the stock this morning. the bullish side is coming from jeffries they go to buy $850 price target on it. they defend that 22% upswing call saying the tesla is leading the way in earnings momentum and capital allocation as well as innovation and then there is bernstein, remaining bearish, reiterating an underperform rating with target of 180. they say domestic competition in
11:23 am
china will be stiffer than in the u.s. separately over the weekend, we saw tesla delay deliveries of the cybertruck this is a stock stuck in neutral this year, up 1% for the year to date it would not be a market day if the street weren't truly split on the future of the shares. >> true. and, i can't help but think about, you know, at least we know tesla can make multiple electric vehicles, more than we can say forso many of the name in the space, be they traditional auto players or not. this new kind of blip around production of the cybertruck, tesla says as production nears in 2022, what does that mean i don't know they could have said production begins in 2022, i would think it is nearing now, if it is going to happen in 2022, i don't know. there is a whole lot of wiggle room in that phrasing. >> hey, classic tesla,
11:24 am
overpromise, underdeliver, perhaps we're seeing a more honest candid tone that investors could appreciate or some that have their orders in for the cybertrack you're right, wouldn't be a market day if we didn't see both sides of that. bytedance, the chinese company behind tiktok, is reportedly going public sources say that the company is aiming for a hong kong listing by early next year after scrapping a planned ipo in late march due to concerns from chinese regulators so we'll have to see how the latest crackdown influences the listing, but perhaps one reason is that this is going to take place in hong kong and not the u.s. we see what happens when a company goes ahead in the u.s. like didi. bytedance at $140 billion in the last funding round, but i'm told by multiple people on the private market, shares can and are trading at triple that so all eyes are watching what could be one of the biggest debuts of the year, guys, which may be back on again, bytedance telling reuters the reports are not accurate and not giving any
11:25 am
more details and, carl, of course, they're not going to be giving any more details because as we know chinese companies have to tread very, very carefully, but if it is hong kong over shanghai, that is perhaps a win because the shanghai markets aren't quite as developed. so you can potentially believe this, but you wonder, you know if they have plans for a u.s. listing, where that leaves the company and it really goes to show these companies are falling in line, it is likely that if they're going ahead with it, i'm told by one source, they have the blessing of the ccp. >> that is interesting the ft guys this morning said that chinese tech tycoons have lost a collective $87 billion of wealth, jon, after the crackdown. depending how you view the trajectory of policy over there, maybe that number will grow. >> it is so much risk. just thinking about bytedance specifically, so much global risk on this months ago we were talking about the trump administration
11:26 am
possibly forcing a sale of u.s. operations, walmart wanted to jump in there, microsoft, oracle, et cetera. so there was pressure on the u.s. side and now there is pressure on the chinese side i don't know which pressure was more existential to them, but even as a public company, how do you value something like that, that has got risk coming from both directions? i don't know that will -- that will be tough. coming up, spencer raskoff is bullish on more m&a in social media. he'll explain why on the other side of this break your family is on the move, so keep up with t-mobile - america's largest 5g network. with our new magenta max plan, you get unlimited premium data that can't slow you down
11:27 am
based on how much smartphone data you use. and keep up with the hottest shows on the go because with magenta max, netflix is on us. plus, new and existing customers can add lines to their family plan for 50% off! so get out there and with unlimited premium data, netflix on us and 50% off additional family lines. only at t-mobile. the leader in 5g
11:28 am
do you have a life insurance policy you no longer need? now you can sell your policy, even a term policy, for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized that we needed a way to supplement our income. if you have one hundred thousand dollars or more of life insurance you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit to find out if you policy qualifies. or call the number on your screen. coventry direct, redefining insurance.
11:29 am
resetting near the bottom of the hour here, welcome back to "techcheck." i'm carl quintanilla with jon fortt and deirdre bosa whatsapp taking a shot at apple over privacy, joining a growing co chorus of criticism. first, rahel solomon.
11:30 am
u.s. employers postingmore than 10 million job openings during june, the most ever for single month layoffs and firings hit a record low of 1.3 million another sign that the job market and economy are bouncing back. crude oil prices falling more than 2.5% worries over the delta virus cutting into global economic growth china reporting a 20% decline in crude imports last month also announcing new travel restrictions a u.n. panel's dire warning on climate change. shares of sanderson farms jumping 7% the third largest chicken producer in the u.s. hitting a $4.5 billion buyout offer from privately held commodities trader cargo and agricultural investor continental grain. and strong beef sales, the beef packer raising guidance for the full year as hotels and restaurants ramp up business tyson shares up 6% for their best daily gain in more than a year
11:31 am
back to you. >> a lot of meat in that news update thank you. social media is seeing a big inflow of new funding as investors try to cash in on what our next guest calls the unbundling of social media here to explain that, former zillow ceo, spencer rascoff. this unbundling of social, as you mentioned, it is not entirely new, linkedin has been around for a while we have seen snap have a nice bounceback but, you know, we also see discord and next door, even peloton in a year or two would have been considered part social network. what is it that is different about these models and attractive about them, maybe even as we look beyond advertising? >> yeah, so, social media has become so huge, so ubiquitous. we have massive horizontal platforms. but in becoming so big, they
11:32 am
have become really all things to all people and they're also filled with news most people now, sad to say, get their news through social media. if you're looking for a break from your regular life and you want to talk about fishing or exercise or sports or cooking, it is actually very noisy to try to do that on horizontal social media. you're right, jon, peloton is a perfect early example of this. you have strava running, recon food, one of my companies for food and cooking, all trails for hiking, for stocks and finance, horizontal social media is unbundling and becoming verticalized we have seen this before with classified the early classified leaders in the '90s and 2000s were horizontal, craigslist and yahoo! had postings of all time taken verticalized, zillow for real estate, indeed for job lis listings, car listings
11:33 am
so the reason that this happens is a couple fold for the user, it is advantageous to be in a specific vertical more of a safe space, dedicated space for that interest. like, you don't want to be that person always posting on instagram about food you want to do that in a food social network the services are able to build out specific features for that vertical, like strava. >> what are the new models that will emerge because of this? even though we like to say google failed the social network, it is arguable that youtube itself has an embedded social network that is part of the mechanics. you got google and facebook, the two clear far and away leaders in digital advertising with these social networks, but then you got all these -- everybody else, so much smaller. they can't have the same business model what are the business models that are going to power this next generation of unbundled
11:34 am
social networks? >> it is a great question. and the case of peloton, it is hardware sales and ongoing subscription services. in the case of pop shop live, e-commerce and the case of, it is stock trading. so each of them are finding their own business model within their certificate cals some of them are paid services, they provide so much value to users in a targeted way that people pay for those subscription services. it is probably not going to be widespread horizontal advertising, won't be display advertising. something more bespoke to that vertical the reason investors should care about all this is we're seeing new companies emerge from this trend. peloton is a great example we're also seeing that this is one of the only things that can threaten the hegemony of facebook other than the government, which may or may not threaten its hegemony, the nipping at the heels and siphoning off of different interest levels is one
11:35 am
of the only things that can knock the giants around. and finally, you know, we spend so much time and discussing m&a and antitrust and government versus big tech, this is one of the vectors we're going to see that play out, is as these horizontal giants will surely do m&a in some of these verticals, they may be small acquisitions, but they may actually be one of the first litmus tests of how far this new more activist government is going to go to being more vigilant about antitrust and m&a. >> so, spencer, talk about what you're seeing in private markets in terms of valuations and venture capital. you were tweeting about some of the institutional investors that have become big players in private markets. you say they may not stick around venture capital always does. we have seen them in the markets for a while now. look at what happened to valuations i think of uber and lyft trading below their ipo prices the sort of spectacular implosion of wework, where are we at, what do you think drives them out of the market
11:36 am
>> what happened over the last couple of years is we have seen so many hedge funds and future funds in family offices move into alternative investing, move into private company, earlier stage series c, d and e private investing and they're doing that for two reasons. companies have been staying private long and so they're trying to get some of the benefits of that appreciation. don't want to wait for that company to become public if a lot of that value is created in the private markets and number two, money has been free with interest rates so low, they move further out on the risk curve and seek returns by moving into venture investing this is cyclical this happens through every cycle, when valuations come down and they surely will at some point, then these alternative investors will stop doing as much private investing, the vcs will be there, and we'll see a pullback among these nontraditional investors that have moved in. and driven valuations up as a founder, that's to my
11:37 am
benefit. as an amateur investor, that's to my detriment. they have undoubtedly driven valuations up, and the sizes of rounds have gotten just monstrous. it used to be a big deal that $ $100 million round, now it is 300, 400, $500 million rounds. >> spencer, one last bit on the unbundling of social media if in fact the giants do get stiff armed on the m&a front, what has happened to their ability to basically copy or steal other models within their giant verticals? >> that's the fallback plan. many of them have done that really well over time. you know, it is going to be hard, it is difficult for them do it in an authentic way in a vertical if you take cooking, recon food is focused on cooking. plenty of cooking and food content on instagram, to for them to go deep in the vertical,
11:38 am
it distracts the user, doesn't feel authentic within the hori horizontal they will copy, for sure but it is, i think it is harder to -- for them to pull that off. >> well, eah they will copy, though we do know that. spencer rascoff, thank you >> thank you our next guest says apple's new child safety measures will cause a, quote, deep well of mistrust that's next. stay with us
11:39 am
11:40 am
11:41 am
dow down 77. here we go again new reports, the company, apple is in talks with ev companies in korea for components fueling speculation once again about the apple car. coming up after the break, cathie wood seeing the highest levels of short interests ever, over $2.7 billion in short bets.
11:42 am
we have a gut check on woodstocks later on this hour as "techcheck" continues after the break. yeah, i mean the thing is, people like geico because it's just easy. bundling for example. you've got car insurance here. and home insurance here. why not... schuuuuzp.. put them together. save even more. some things are just better together, aren't they? like tea and crumpets. but you wouldn't bundle just anything. like, say... a porcupine in a balloon factory. no. that'd be a mess. i mean for starters, porcupines are famously no good in a team setting. geico. save even more when bundle home and car insurance. [grunts] geico. save even more ♪ ♪ [grunts] pnc bank believes that if a pair of goggles can help your backhand get better... yeah! ...then your bank should help you budget even better. (laughing) virtual wallet® is so much more than a checking account. its low cash mode feature gives you at least 24 hours of extra time to help you avoid an overdraft fee.
11:43 am
you see that? virtual wallet® with low cash mode from pnc bank. one way we're making a difference. (chimes) - dearest burger joints, (knife thwacking) our royal fryness, thanks for keeping your cool when the kitchen is not. we promise to serve you with the respect you deserve. (upbeat orchestral music) (pleasant piano music) competition beat us again. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world.
11:44 am
welcome back the apple blowback continues privacy orgs and business leaders criticizing how apple laid out its program combatting child sexual abuse content on apple products the head of whatsapp tweeting i think this is the wrong approach
11:45 am
and a setback for people's privacy all over the world people asked if we'll adopt this system for whatsapp, the answer is no. with tim sweeney, ceo of epic games who said my view is, yes, do think of the children, think of the dystopia they'll grow up in if we tolerate the unchecked growth of private monopolies with unlimited surveillance power increasingly taking on governing roles yet now unshackled from liberal democratic processes our next guest, the choice will be an overhang for years, undoing billions in priceless customer trust and marketing let's bring in matthew green of johns hopkins, expert on cryptography i got to push back on this cloud services have been searching automatically for this content for years as drew houseton reminded us last week and apple has been pushing differential privacy methods for years, resisted government back doors, as an apple customer, i'm
11:46 am
not threatened by the idea that they're using this hashed method to search for child pornography. and bring people who are trafficking in it to justice why should i be? >> well, first off, i have two young kids, the idea of people purveying child pornography is disgusting and we all feel this way. what i want to say is that apple is doing something different with a lot of other services, when they scan for child pornography, you're uploading photos and sharing them with other people we want to make sure people are not sharing that kind of content. that's how it spreads. but what apple is doing is different. they're going to be scanning the private photo library on your device and the technology they use for now will be limited to photos if you have icloud backup turned on, but doesn't really care about that even if you don't send the photos to apple, this new software will be able to go through your private photos on your device and report whether they match a database operated by apple or the government >> right, if you got icloud turned on. forgive me for not having any
11:47 am
sympathy for people who have child pornography on their devices and turn icloud on why should they not be busted for that that's illegal >> start with the fact that who is going to be holding multiple photos of child pornography on their device and having icloud turned on? the answer is nobody the actual number of people is going to be very small this is -- >> are you saying that would mean that no one has ever been caught uploading this content to a cloud service. and i think that's probably not the case >> it is pretty amusing because actually there are millions and millions of reports this content being caught but the numbers keep going up. in the sense that, yes, we're getting plenty of reports of people but they seem to be basically ignoring the fact that they get reported on the reason is that 7% of the reports that go to the national center for missing and exploited children are foreign they're people overseas, who are perfectly happy to be reported because they know they're not going to be any legal consequences this regime doesn't work very
11:48 am
well >> matthew, criticism of this policy inevitably leads back to the idea of a slippery slope, that this isn't just about catching child pornography, that apple's privacy measures will be used for further privacy breaches, or censorship. why and how would that happen? >> well, the first thing you need to know is that apple is the only provider that is still operates encrypted messaging services in china. and apple has a big presence in china. there have been a lot of reports about apple doing deals with the chinese government to move encryption keyes and servers into china other providers like google pulled out of china. apple hasn't found a way to do it is it going to be possible for apple it build a technology that allows them to scan every device and prevent the chinese communist party from asking for a specific photos and media if they want scanned? to me it seems like you're not just at the top of a slippery
11:49 am
slope, you're already part of the way down it. the question is how hard can apple hold firm now? >> there is no lou that says you have to use an iphone or own an iphone i wonder from a marketing standpoint whether or not you think this draws consumer interest or repels it into the hands of maybe apple's competitors? >> yeah, i mean, it is a really good question, but apple has not been ambiguous of what they want to tell consumers. i don't know if you've seen that big bill bard which says what happens on your iphone stays on your iphone. we all know that apple versus fbi a few years ago they said even helping to open a terrorist phone one time would be the beginning of a slippery slope i. this is not my rhetoric. this is apple. this is me asking what changed with am since 2015 >> interesting apple would argue they found a way to do this without opening your phone, but the conversation continues. matthew green from johns hopkins, thank you >> thank you
11:50 am
>> great debate. we'll have that again, i'm sure. we're getting breaking news out of washington on the crypto amendment and the bill >> well, carl, the senate has reached an agreement on language that would clarify the new irs reporting requirements for cryptocurrencies in the infrastructure bill. there have been concerns that certain parts of the industry could be exempted industry could be excepted from those rules while others would be subject to it. today senator pat toomey said that the new language will focus on the definition of a broker. he said that a broker would be defined as those who conduct transactions on an exchange where crypto assets are bought and sold and that language would help prevent other players like note operators, stakers, validators from getting swept up in these regulations as well this is not a perfect solution but that it's certainly better than the original text of the bill he said it has support from democratic senator mark warner who submitted a competing
11:51 am
amendment around this. it also has the support of the treasury department as well. so we will see if this new agreement on clarifying the language for cryptos actually gets a vote in the senate before the bill passes in its final form perhaps early tomorrow morning. but for now, the senate has reached an agreement on language clarifying exactly who would be covered by these new crypto currency reporting requirements in the irs back to you. >> we'll see how the crypto community responds to this as we see bitcoin come within one dollar of $46,000. more on that story throughout the day. stay with us back in two. (vo) nobody dreams in conventional thinking. it didn't get us to the moon.
11:52 am
it doesn't ring the bell on wall street. or disrupt the status quo. t-mobile for business uses unconventional thinking to help you realize new possibilities on america's largest, fastest, and most reliable 5g network. plus customer experience that finds solutions in the moment. and first-class benefits, like 5g with every plan. network, support and value-- without any tradeoffs. that's t-mobile for business.
11:53 am
comcast nbcuniversal is investing in entrepreneurs to bring what's next for sports technology to athletes, teams, and fans. that's why we created the sportstech accelerator, to invest in and develop the next generation of technology that will change the way we experience sports. we've already invested in entrepreneurs like ane swim, who develops products that provide hair protection so that everyone can enjoy the freedom of swimming. like the athletes competing in tokyo, these entrepreneurs have a fierce work ethic and drive to achieve - to change the game and inspire the team of tomorrow.
11:54 am
it's been a minute since we checked in on kathy wood but dom chu has us covered he joins us with a gut check >> we have the architect innovation etf has become one of the emblematic ones. especially when it comes to growth, technology and transformational type technology the tech innovation on a year to date basis, pretty much flat but a nice run up over the last couple of months trying to find stability and moving higher. the ark genomic and next generation internet etf are the three biggest etfs, active etfs managed by the ark investment
11:55 am
group of companies run by kathy wood if you look at near-term trends we've seen develop here, two simple holdings, roku and uipath roku has been a nice simple. but toosimple which does autonomous driving for trucks and semitractor trailers and uipath is robotics and autonomous software, those companies have fallen sharply since their ipo highs. and those particular funds that kathy wood runs at ark are buying some of these stocks up incrementally over the last couple of weeks. tesla, roku and teledoc, the most important companies for the ark innovation those three stocks make up 21% to 22% of the overall ark tech innovation etf so certainly ones you have to watch there for sure, carl back over to you >> dom, thanks for that. got a quick programming note this morning do not miss a star-studded set
11:56 am
of premieres on cnbc this week the first ever episode of the new series "super heists" gets things started 10:00 p.m. eastern tonight. tomorrow a new season of "the profit" with marcus lemonis, same time. don't miss it. "techcheck" back in a moment eti. how? they have a better finance system than we do. i feel like they might have a better finance system than we do. workday. how do they make better decisions faster? workday. it's got to be something workday. i think i got something. work... hey, rob, you're on mute. hello! hey, rob, there he is. workday. the finance, hr and planning system for a changing world. new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit and get started today.
11:57 am
(♪ ♪) whose resumes on indeed matchwhether it's aeria. technology first, (♪ ♪) a fashion first, (♪ ♪) a science first,
11:58 am
(♪ ♪) or a first for us all (♪ ♪) whatever you hope to achieve for your business, cloud first helps you get to value...first (♪ ♪) let there be change accenture
11:59 am
one more thing an anniversary for gig economy stocks a year ago today a california judge granted a preliminary injunction to stop uber and lyft from clarifying their drivers as contractors. they pushed to pass prop 22 last november a ballot initiative that allowed them to keep their workers as contractors. and also provided a wage floor and limited benefits now the next battle set for the east coast, uber, lyft, doordash and cart have filed for a similar ballot measure in massachusetts. and this as, you know, prices are going up for rides, and there's a shortage of drivers. >> that sort of middle ground is the playbook you have to wonder if drivers really do love it because both companies are facing a labor shortage here. if they really loved it, would they be coming back in bigger droves >> yeah. and after the jolt stated today,
12:00 pm
you can see how urgent the need is to get that labor force out and ready to meet some of these unfilled positions overall, the dow has been able to narrow its losses somewhat today. we're keeping our eye on the ten-year which got up to 1.30. amc tonight and we'll get coinbase tomorrow as we keep our eye on a week of earnings with some pretty big names. let's get to "the half." welcome to the halfcom report." i'm scott wapner stocks hovering near record highs. major moves from our investment committee. joining me for the hour today, brenda, joe terranova, rob and pete najarian from market the dow and s&p look to extend their record runs. a little bit of work to do dow slightly negative as is the s&p. nasdaq higher. the ten-year note yield say big story today at 1.31% joe terranova, the


info Stream Only

Uploaded by TV Archive on