tv Bloomberg Technology Bloomberg March 30, 2021 5:00pm-6:01pm EDT
plus, everyone seems to want a piece of crypto. i talked to the ceo of kraken about future plans to go public and demands for bitcoin. and it was one of 2020's top apps. timber -- tender offer it those lonely -- tinder offering those lonely and lockdown with a chance at love. all of those guests in a moment. first, u.s. stocks falling for a second day as traders weigh the consequences of more stimulus from the biden administration. >> a lot of red on the screen except for when it comes to big tech. you can see the s&p 500 index in the red, the nasdaq and the red. a lot of selling pressure. big tech rising above it. a lot of this was a reaction to yields.
at one point, they were up six basis points. that is the kind of move that usually spooks your apple, microsoft, teslas. i also want to look at some of those capital fund related stocks. the idea that the biggest banks abroad were the ones that were more exposed to that blowup. the losses were immaterial, the likes of goldman sachs and morgan stanley, those were higher on the day. viacom, two of the big names that saieh massive blowup. once again, i mentioned tech not really trading is a bundle. the stocks index and the s&p 500 index information technology index kind of trading in line
but you are seeing this semiconductors and chipmakers outperform. emily: the brains behind your phones, tablets, pcs, cars, smart almost anything, arm provides the chip that powers many of the world's devices. the first new architecture in a decade, the arm v9 chip. what will this mean for the tech sector and your devices? joining us, the arm ceo simon segars. talk to us about what this means in terms of security and performance and how this sets arm apart from rivals? simon: the unveiling of this is a big moment for us. it is exciting because it is the fruits of many years of labor. we do a major update to the
architecture about once every 10 years. it is really important that there is consistency in the architecture. the underlying model that software developers rely on company definition that controls how software runs, how software interacts with the system. given that we have hundreds of chips and millions of developers, it is important that we have consistency across those devices. as we look forward to the future, this next decade, there are some things that really stand out. one is security. last year, showing how dependent we are on digital devices and services. we think that will only increase into the future. the other is the ability to process all the data, the ability to run ai algorithms is really important. these are two major vectors we have invested in. emily: you are increasingly
taking on intel, which dominates some of the markets you are looking to enter. what markets does that take arm into and when will we see this showing up in our devices? simon: it is designed to span across the entire range of devices. we believe there is a need for greater security because of all the data going around and greater ability to process that data. across the smallest sensors through devices in the network up into the cloud, servers running the cloud and all the way out to supercomputers as well. this is an architecture that is designed to span that entire spectrum of computing. emily: i wonder if chip-level computing is the way forward and will really keep us safe. that is what many thought was
the point of string level computing -- chip level computing and that we saw a string of attacks. simon: computing is an ever-changing task, so that we have to be investing in. i think security will come from features that are in the hardware, the underlying architecture, coupled with software that is written to take advantage of those features. we have been engaging with the software community, thinking about how secure systems are billed. security comes from the combination of all the components. it is not just one thing, it is the combination of everything. emily: we are in the middle of an incredibly devastating chip shortage. i have been getting conflicting opinions on when this will be over. i recently spoke to the ceo's of both intel and qualcomm who had different views on how long it
would take. take a listen. >> we have line of sight that demand and supply will align by the end of this calendar year. >> covid required everyone to step kbit from -- step back a bit from the industry. you have supply chains scaling back a bit, demand scaling up radically. >> starting to see some of the capacity investments coming online in 2021. we expect that this crisis will be behind us. >> now we are in a position that there is a meaningful shortage. it will be a couple of years before that is fully resolved. emily: is the chip shortage going to be over the end of the year, will it take a couple of years, or something else? simon: building a -- is not
something you throw up overnight. it takes a lot of time, it takes a lot of investment. over the last number of years comedy manufacturing industry -- of years, the manufacturing industry has invested a lot in building up capacity. we saw some real sharp moves in different industries. it will right itself. they will be investment in more capacity. ultimately, we will get back to a position where supply and demand are better matched. emily: once it does right itself, i wonder, could we see the opposite? will supply then outpaced demand with everyone trying to catch up? simon: that is a tough thing. you are talking about companies having to invest tens of billions of dollars in cap-ex,
equipment. it is an equation you have to get very right. we have been here before, the industry has had too much supply , chip prices plummet, and it reduces investment and rnd. i think the industry has got better at analyzing supply and demand and has generally gotten better at investing at the right pace. emily: i'm curious for your reaction to intel's big unveiling of its own. doubling down on manufacturing, opening a foundry business. simon: intel has had a foundry business for quite some time. we can see from this supply and demand mismatch at the moment that there is a need for more manufacturing. they need for greater capacity. investing in leading edge process is expensive to do.
it keeps the performance of semiconductors advancing i welcome that and i think it will be a good thing. emily: consolidation has been the name of the game in the chip industry for a number of years now. we're still waiting on an update from nvidia's plan to buy arm. can you give us an update or tell us more about what the holdup is? simon: we said it would take about 18 months. we remain confident about that timeline. we are working with regulators around the world to make sure they understand what we do and ultimately how they support competition in the end market. we think it will give us the ability to invest more aggressively in our roadmaps and provide that technology to any semiconductor company in the world that wants to build chips
around our technology. we think this will be a good thing. emily: arm has an interesting situation in china where as i understand it, the ceo of armor china has been terminated but refuses to leave. simon: we are going through a leadership change in china. it is hard, nobody can travel there at the moment. but we are confident that will get resolved. meanwhile, our business in china is remaining strong. many licensees are adopting technology from us. we are confident that this situation will get resolved. emily: simon segars, ceo of arm, thank you for stopping by. coming up, the votes are in. we are taking a look at the push to unionize at an amazon warehouse in alabama and what
emily: the process of tallying and counting votes of amazon workers in alabama is underway in what could be a defining moment for not just the e-commerce giant but the national labor relations board. the votes will be counted via livestream and accessible to anyone with a zoom account, giving labor workers and the public with a front row seat to one of the most highly anticipated labor votes in years. joining us, the former chairwoman of the national labor relations board under obama.
the last time amazon workers did a unionization vote was in 2014 when a small group decided not to unionize after wall -- after all? will this time be different? >> i don't know what the results will be but this time is certainly different in the aspect of how much attention this vote has gotten written the fact that it involves almost 6000 employees, the fact that it is in the south, coming during the pandemic and in the context of these interlocking crises, the pandemic, the economic crisis, the racial justice crisis, democracy crisis. this is huge in a way that earlier efforts to organize amazon workers and other companies have not been huge. emily: amazon has pushed back hard on this. in a statement we just got, they
say, our employees know the truth. wages starting at $15 or more. health care from day one. a safe and inclusive workplace. we encouraged all of our employees to vote and their voices will be heard. amazon has held some mandatory antiunion meetings which i am told is not unusual. what do you make of that response? wilma: their response i would say has been typical of companies that wish to avoid unionization, which is a lot of them. but because it is amazon, because of the size of the workforce, this is more so. so it is typical, but more so. and the fact that there has been this month-long voting period by mail ballot means that the campaigning has been going on for a long time. i would say that the opposition to unionization is intense and
relentless by amazon which, given its past history over the past few years, demonstrates that it is relentless in its efforts to avoid unionization. emily: as you mentioned, it is a mail-in ballot election. i wonder if that opens the national labor relations board up to criticism that the official or final tally might be suspect because it is not happening in person. do you think this particular vote is one that could be litigated for a long time? wilma: it is always possible that the vote could be litigated. except i would say, in this case, the decision to have a mail ballot election was a unanimous one by the trump majority nlrb. it is consistent with most of the elections held during this pandemic, held by mail ballots
because of the obvious health risk. amazon made a big plate to have this election held in person at the facility. they were quite elaborate and creative for what they were going to construct to try to have it in person. the nlrb, again, a trump majority, rejected it. it is possible that amazon will try to litigate aspects of this election. but i think that in this case, it will hold up. the mail ballot itself will not be subject to really intense scrutiny. i think the other thing that has happened is that this agency, not a well-known agency although it has existed since 1935, is now in the public eye. it is in the public eye because it is holding a workplace election. what is on display is workplace democracy. emily: what is to stop amazon from just firing workers?
or what if the union wins and amazon just shuts the warehouse down? wilma: in theory, that can happen. the law makes that unlawful. you cannot discriminate against people who want to unionize or engage in union activity. you cannot retaliate against them. the problem is that the law takes a long time. the challenge for litigating those types of practices can be delayed. meantime, workers may be out of work. in the remedy under this law are extremely weak. all that the nlrb can do if they find that people have been unlawfully discharged his order them to be reinstated, paid back pay, and order the employer to post a notice in the workplace saying, we won't do that again. emily: do we need stiffer
penalties? does the national labor relations process need reform? wilma: i would like to see the lot reformed. it has not been significantly amended since 1947 and, needless to say, a lot has changed in our economy, society, and in the workplace since 1947. there is going to be another effort. a labor law reform bill has passed the house of representatives. it is going to be an uphill battle in the senate as it now stands. we are desperately in need of updating this labor law. one of the key components is better remedies. something that would pose incentives to employers who obey the law. emily: quickly, if the union loses, will there be another vote in alabama or elsewhere?
wilma: there certainly could be. the union may file objections to the elections. if there are grounds, the nlrb could hold another election. if the nlrb does not, the union will be free in a year to come back and seek an election. i think even if there is a loss here, employees at amazon and other places will be encouraged to try to seek union representation. emily: we are going to keep following at every step of the way. former chairwoman of the national labor relations board, wilma liebman, under president obama. coming up, bitcoin continues to go mainstream. visa will use a stable coin backed by the u.s. dollar to settle transactions. do not miss our exclusive
they said, we find it to be highly offensive and understand it is painful for many to watch. the email went on to state that the company made the decision to leave the video up to enforce our policy consistently and avoid setting a precedent that would lead us to having to remove a lot of other music on youtube. the debate, the latest example of silicon workers and executives debating the moral and societal implications. in a big boost for bytedance, the parent company of tiktok, shares are now said to be trading with evaluation of more than $250 billion on the secondary market. that means it is more valuable than exxon or coca-cola. the company is weighing options for an ipo. longtime facebook executive david fisher is leaving the company after more than a decade. he made the announcement tuesday morning.
fisher, one of the highest executives overseeing advertising and marketing efforts for business products. he was also heavily involved in some of the largest deals including the 5.7 dollars investment in india --$5.7 billion investment in india's geo. tinder breaking its own records amidst a surge in demand of users looking for love. we will speak to the ceo about what he calls a new decade of dating. and as we had to break, have a look at some of big tech's performances tuesday. apple leading the nasdaq into negative territory. also down, microsoft, intel, and cisco. this is bloomberg. ♪
by the u.s. dollar for transactions. he previously said bitcoin could hit $1 million or more. jesse, i want to start with coinbase, we expect it to get out of the gate next. what will you be watching when it comes to the public offering? jesse: the crypto space has been all private. i think it will take the valuations of crypto companies hire. emily: what are you thinking
about in terms of your own ipo? what is the plan for yourself? jesse: we are on track to go public next year, probably second half. there is a lot of time between now and then, anything can happen in the crypto space. we are gearing up to be able to do that. we think being in the public market is good for our clients. fortunately, the rules of dfc -- unfortunately the rules with the fcc prohibit us from allowing our clients to participate in the upside business. emily: what does gearing up involve? does that mean to be raising more money before going public? jesse: it is possible. it's not necessary, we've got a strong balance the sheet and the
company is profitable. i don't know how much more i can say about that. emily: talk to us a little bit about public acceptance. we are watching bitcoin climb incredibly higher. since then, we have deemed some losses. where do you see the coin at the end of the year? jesse: that's hard to comprehend because i am measuring it in terms of dollars. probably by the end of the year, it will be one big coin per lambeau and this time next year per biscotti.
you never know where the dollar is going to be, there could be 10 times as many u.s. dollars out there your now. >> reading a lot of your is outside of bitcoin. where do you see those being valued at by the end of the year? and are there other areas of crypto that you see your client levitating toward -- gravitating toward catching up. jesse: there is a process now to move your coins, and in the process of doing that you burn your fury one -- you burn your
ethereum one. all the in st activity is driving at the use of ethereum. next is polkadot. go see a lot of things we ported over to polkadot for lower transaction fees. emily: there's a lot of people out there that do not know how long this rally can last around them. what evidence do you have that the nft movement is here to stay, if anything? jesse: people have been
collecting things since the dawn of humanity. look at sc, ebay, people going to garage sales and arcola. there are things out in the world of people like to collect, and in ftes are those things. there are great artists out there moving to the digital format, so i think we'll see you the rich people in crypto search to -- the way to show your collection is online and if that is digital, then they are taking off right now. you could have concert tickets, proof of ownership of anything as an nsc, and i think you'll see more of those commercial applications.
whenever there is a secondary sale of that louis vuitton bag, that in of two can go with it as a proof of authenticity in a chain of custody. i think in ftes are here to stay regardless of what you think about the collectible segment. emily: some of this is happening now, but a lot of our discussions are the corporate sector. we interviewed ceo after ceo who said we are not investing in bitcoin, we are not speculating at the moment. how different do you think the world will be in five years, and can you really ensure some of these corporate customers that compose here to stay? jesse: thanks to elon, everybody
who owns a piece of the s&p 500 now owns a piece of bitcoin. i think you can wait and see. the prices going up -- just keep buying as much as they can. it is important to have a view on it. if you're looking at the fundamentals of crypto and the adoptions that we've seen a number of highly financial advisors who have flipped on bitcoin and recently come around and said that this point there is so many people that are backing and supporting it i think you own it to yourself to take a look at the fundamentals and try to understand what that is, and if you're not
understanding that than you are not understanding how the financial system works. a huge number of unnecessary and untrustworthy middlemen. emily: i'm curious, you said you may go public next year. the evaluation of private market getting close to some of the biggest banks in the world. what you think he would be yours has a public company? >> it looks like it is $100 million pre-ipo. i think these companies on the future of finance -- companies are the future of finance. jesse: we've had to build the whole stack because nothing was
there 10 years ago when we got started with this. i think we can actually completely replace everything that exists in the traditional system. they need to ensure their current with crypto technology. i think there's a real risk for those businesses who are simply place. paypal, fortunately for them they have been on the ball. i will think -- i think you are going to see more than that. i think the devaluations are reasonable right now and could go much higher. emily: hard, we will course we watching the coinbase directory listing very close next week. sonali basak, thank you so much for joining us. emily: coming up, and for online
joining us now for an exclusive interview is tender ceo. tender topped tiktok, youtube, disney plus in time spent in 2020. so much of last year was so unprecedented, what describes what you saw in that behavior? >> when covid first hit, and a lot of people were wondering what would happen to dating apps ? very quickly, online dating became the main way for people to connect and meet new people. on march already have over 3 billion swipes on tender. as you and do year, it migrated from being able to connect with
people online only but then i way to connect and maybe do some activities together. and now at the end of covid has became a way to start wintering back out again. -- start venturing back out again. emily: what happens to dating in 2021? what does it look like in a post-pandemic new normal? >> this goes back to some of the trends that started, and the covid period of time put that over the top for the way people were consuming video in tv. now that sigma is almost clearly gone. the first thing we saw is that conversations were up 20%.
the length of those conversations were up 30%. between people up,. -- 40% of all couples were meeting online, and tender driving over 25% of those. 10% of all couples meeting offline were from tender. emily: what pandemic growth are you expecting? will tender still be topping the charts when it comes down? >> i think we've the increase of vaccines on our profiles, but people are still having a hard time in europe and pray -- places like brazil where the pandemic is still raging. the u.s. is saying most people
would be vaccinated by the end of may. i think, again, this trend is already very significant, is celebrating -- are seeing that growth. i think the only question is, what is life on the others of covid like? either way, it is now the main way people are comfortable connecting, and it makes sense because it is so efficient when you look at the products, algorithms, and bringing people together versus taking a chance on someone. emily: is it the summer of love? >> i don't know. who knows whether it would have been greater without the pin to make. every bit of the world opens back up.
>> you are also launching tender passport, where you can virtually travel anywhere in the world. normally you can drop your pin in the city you are going to be traveling in answer to meet people in the city in advance of your trip. when that way you could ease people's loneliness at a time where everybody was we had a day when we had 55 million matches in one day and that was from the initial launch of power. this time we are doing it for a different reason to that we can anticipate and briefly month of april.
the walls opening back up. we have seen the spike and travel. we are getting ahead of that one. emily: bumble recently went public. she talks about the rise of older people looking for platforms. it is safer for women. how does tender stand out from the pack and stand out from some of the stereotypes from a younger user who is not looking for long-term love? >> the majority of our audience is under 30. and there are other products for older users. one great thing about tender and why we are so large, we are
nonjudgmental that way. we may be driving to and percent of all americans in the united states, but at the same time the vast majority are not looking for something that serious. there are different brands for different ages and populations. gender is the biggest and broadest because used tender for whatever it is you are looking for, not just rent. emily: you also rand cbs interactive for years. founded cvs men which became paramount plus, and i have to ask you about the streaming
more. do you see consolidation here or are we going to just keep paying for more and more streaming services? >> i don't know that there is a lot of new entries coming into the category. his sony hotspot in terms of total subscribers. that moment in time when netflix came online or dizzy with a 100-year-old catalog or amazon deciding to give prime video way and there bundle. these are things are probably not going to happen again, see do have a playing field that is fairly well established by now.
the people are going to subscribe to more than one of these things. they tend to hit pause and come back. i do think the constant work of putting more and more bodies with prices is happening. the need for consolidation is not quite as urgent. emily: interesting. all right, tender ceo. thank you so much for joining us. good to have you back, on bloomberg. coming up, another space x test flight gone wrong. but this could mean for the future of manned flights to mars coming up next. this is bloomberg.
test flight of its biggest rocket, and once again it ended in the past. the last starship test act on march third touchdown with a slight incline and was engulfed in flames. to earlier attempts also ended in a fireball, thank goodness no one has been injured so far. the arts space exploration and innovation. and spotify as part of the parent company of locker room at . no word on how much spotify is paying. that doesn't for this edition of bloomberg technology. tomorrow you will see my conversation with ibm ceo arvin