tv Bloomberg Technology Bloomberg June 18, 2021 5:00pm-6:00pm EDT
caroline: once again getting hit in the heat wave and keeping its at 78 the all new green normal. stocks pummeled. and get us through it. >> people are getting their money and where did they put it? in the bond market. it dropped six basis points but the stocks, it was a blood bath red on the screen. semiconductors. let's zoom out to the west five days and see what was happening because the red on the screen. it was up on the day s&p and the
broad index down. so you saw that story, very crucial. tech is coming back. look at this on a two-year time frame. but stagnating behavior and you see those tech moves continuity. that's the macro story and what's the macro story? >> fell away with the rest of the market. and tenth of 1%. and $900 a share. and caroline, one stocks gain. and cut by jeffrey to $54 a share the competition is coming for intel. and we are going to talk about
how much it is these days but up considerably. up 1.9% and going to raise prices on the platform which wall street welcomed. and broadly crypto currencies low and bit coin below 36,000 and slightly higher and bloomberg galaxy down more than 6%. and carolina ine, the gyrations and volatility. private capital, so far in 2021, 17.4 billion piled in crypto stocks that is in the first six months of the year exceeding the
record we set in 2018. and got fantastic debt and bring it back to the private markets. what is the future of crypto companies? caroline: even muy money. we thank you. and billionaire investor mark cuban got hit. and clashed to zero. it is part of a coin project. and what it means in a moment. pretty hot these days and after 100% cuban called for more oversight and said there should be regulation to say what a stable coin is.
>> your time is worth more than your money. regulateors you need a nanny state to hold your hand. not going to make it. jesse joins me now where it was your tweets and conversation with mark cuban. first and foremost, what is that? >> stable coins that are regulated by banks and crypto and the holy grail is can you have a coin that uses incentives to keep the beg at $1. it is pretty tough. caroline: jesse, you saw this conversation happening on twitter and regulation isn't the
answer, why not? >> we don't need to protect billionaires from gam bling their money. >> people throwing money into something brand new and without looking at the code and hoping it's going to go up. and to call for regulation because you made a bad debt knowing what you got into and didn't do any research, i think it's going too far and regulateors are having a hartford time to understand bit coin and has the potential to slow down the industry and innovation. i think more people are doing the research and billionaires
that are going to be making statements and encouraging people to get into these things are irresponsible. you need to be careful about what you say and not lead people into thinking it is winners. joe: wow, this is what happens at the top where a billionaire is tweeting about a cyber coin? is that the sign of the beginning or the end? >> i think it is the beginning. i think a lot of this stuff is getting figured out. over the next decade, going to replace the financial services infrastructure that will replace the unnecessary middlemen when you have math, formulas that are
doing the job and fully transparent and new paradime where the consumer has direct access to the market. caroline: aren't middlemen and regulation inevitable, and yes, i understand that mark cuban said i can do due diligence and i lost money and i'm stupid. fm people get the pile on, does nt that mean that regulateors are going to have it around some shape or form? >> regulateors are deeply involved. i don't think there is a lack of regulation. there is a significant amount of oversight already. when you ask the regulator to get into the details and block people from participating in the
market where you might be qualified and understanding of it, there is no way you can stop people without doing any research and tons of this. the government selling lot erie tickets. people need to have the ability to invest to make that bet and not be blocked from the government from making a good investment which has been the case historically with these investor accreditation rules and retail investor can get early on. joe: there is a centralized exchange. do you think about that when you think about the future of cracken? is that a future foy your road map and make it more decentralized and the emergens
from a business perspective? >> it is early. we see what we want to integrate and give consumers more exposure to and building a portal or interface layer in an easy to understand way and don't understand what is happening but they get the benefits of the underlying protocols that they are familiar with. long-term, it is somewhat competitive, but it will be more of an integration play and use those services that comes with customer service and all of the things you would expect from a service provider. joe: we have seen this decline in the price of crypto across different exchanges. and a lot of the reason why people get excited by crypto and
excited by the number going up very fast in a short period of time. how do you break out of that skikeal and rather than the excitement of making money very fast? >> i it is hard in the developed world that we have access to great banking systems, but there are a lot of users of crypto currency who don't have an alternative. their national currency has failed or because they are not able to get access because they don't have documentation so it is a lot of pain for people in the world. it is not so obvious. crypto currency has cases beyond
speculation but part of the process and early adopters are going to provide liquidity to the market and provides stability of the price overtime and becomes more useful as a transactional currency. caroline: great to get you. you started it all and thank you all that debate. coming up, 156, the number of years since the u.s. ended slavery and the country has come a long way. how they are looking to diversify their investments. ♪
>> and one way we are doing that is by creating where we are currently underrepresented. and four years ago. and focus on training the next second class of investors. caroline: talk to us through that every day are being experienced by the founders and why [indiscernible] >> it's pretty well documented and researched in the earliest stages of funding for a company that company doesn't have a
track record and in the early stages and so the investor and make a decision to fund is really to believe in that person and just relies on people. if there is a person that i believe i could take this to going to have an outcome and often that is based on the pattern. i never seen a black woman take a company and it is very difficult for me to believe. caroline: [indiscernible] writing a memoir and how you allocate, diversity at the board level. white women getting more diversity, more females but
people of color. there is an element there is more females we see. is there more to be able to ensure. >> we saw and there was a report to black-led companies. and look at the community and getting change. outcomes and growth with such a small amount. >> tell us about your story. you have 20 years of experience. what drew you to want to shake
it up? >> [indiscernible] >> i saw my family and i don't think but that is happening. my grandmother came here from jamaica and worked many businesses out of necessities and took care of myself and my family. and extended family members. i saw at a young age of interviewership. when i moved to the silicon valley area 12 years ago, i saw it on a greater scale and that entrepreneurship was building the next generation of the economy and so, you know, one of the things i was looking at, why weren't we here, black and brown people represented here in
building these types of companies and access to capital. caroline: there is so much talking and now we are seeing walking, too. we are seeing philantrhopic giving. and venture and mark cuban foundation, a lot of foundations. do you feel optimistic that now is the time of real change of actual money being put to work and people realizing this is really good business sense? >> this is a good start. and it needs to be a huge village championship. and seeing the earliest stages and the rm and for companies
experience. joining me today in our discussion, google cloud v.p. and what are you doing? >> we are very excited about this partnership. and we are focused on accelerating an organization that has been transforming luxury and a.i. and learning solutions to empower with their individual brands to create new customer experiences and deepen those relationships caroline: what is going on and what would the experience be like? >> that's the interesting part of this partnership. but data foundation for a.i. and each brand can understand where
customers at a deeper level. when you go in store and having a deeper understanding of everything and digitially and creating [indiscernible] >> and understanding what type of products, what fits your style and understanding you as a person and each brand will take that and create something that is unique and i wouldn't expect that and dior and sephora and see what is right for their customers and what drives long-term growth and from a luxury and about personalization and consumers. in the pandemic having to push
from in-store that luxury, that touch and feel in store and really closing the gap between visual experiences and what consumers have done in stores. there are a lot of things. caroline: i'm looking at a chart that shows how much online shopping has rocketed. we only have a minute left. is it going to be sustainable and still shop online? >> absolutely. consumers are now comfortable to return to stores, but 50% of them say they will shop online. that is more than double the historical average that we first saw that 10%-15%. we have been talking for years that it has been broken down and
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all of the jokes, all of the working out whether something is or is not "stonks," these are 150 robinhood stocks. the baseline is the s&p 500. that is outperformance clear as day. to drive that home, look at the three or four stocks at the top. year-to-date gains in the thousands of percent and the more recent phenomena, del taco, it's very hard to make sense of. but there are the numbers. caroline: thank you. we want to talk more about the stonks. inferences have become quite popular. first they took over the world of fashion and dance, now offering some of them financial
advice, generating questions on how to build wealth. joining us is donald moore who has been following the influencers. january when this stonks discussion hit all of us, you look on tiktok and every other tiktok i get is one person telling me i could write my own children's book on one website and sell it on amazon and make hundreds of thousands but there is very serious financial advice in it as well other than just side hassle -- side hassle. >> the biggest reason it has taken off on social media is young people in america don't really get education about financial information in terms of investing or how to create wealth. most of what we learn is the idea of how to balance a
checkbook or pay taxes. caroline: we don't get that in the u.k.. >> only seven states have any required financial literacy courses at all. even people who get that are ahead of the curve. you see increasingly young aspiring investors turned to social media just because they trusted, growing up as twitter or youtube as their main sources and play on those platforms. caroline: talk to us about who you have seen who is doing a good service in terms of social media getting the word out there. >> in my story, we covered a couple of people that give out financial information. one of them is a discord platform, discord is like a messaging platform. there is a group there that is a
huge collective of people who trade financial advice. they have a larger community where it is free information and for people who are more serious and want to get more hands-on one-on-one advice, they actually have a subscription tier. we have subscriptions where it is almost like you're getting personal financial advisor almost as if you are in charles schwab or something of that nature. romaine: -- caroline: many people are very passionate about this. this is the moment where you can have a real financial inclusion. you don't have to be a registered investor. you can buy into crypto without having some set of hurdles and indeed you can buy stocks much more easily through apps such as robinhood. is there a for spear for good were more regulation needed even?
>> it is a mixed bag. it definitely has empowered people, just the idea of being able to buy fractional shares or a fraction of a bitcoin. it is definitely empowering people, and fact that is one of the main draws. people on reddit are relishing the fact that they are able to take over stocks from the shorter's eared -- shorter's. you can see that people are putting all of their eggs in one basket, taking pretty much their life savings and investing it. they trust people on social media to show them the way that these are not actual financial advisors. they play the role and might be knowledgeable they don't adhere to the same kind of rules so people might get hosed in the end by putting all of their money in stocks or coins that are worthless the day after.
at the end of the day, these are young adults investing significant amounts of money and i feel like they need more protection as well. caroline: such an amazing area and a great story. i urge people to go and read it, meanwhile, keeping up with the latest mean stock -- if keeping up with the latest mean stock isn't dizzy enough, a new wave of voting awaits in your city on tuesday. charlie pellett explains. >> democrats voting in new york's may oriole primary will choose their favorite candidate as usual, but in this ranked choice election, there will be allowed to put as many as five names on their ballot. with 13 candidates running, voters will face complex decisions and a set of intricate rules. a candidate with more than 50%
of first place votes wins outright. if nobody wins that, the candidate with the fewest first boat is illuminated. every candidate's tablet and the second place votes are distracted. the process defeats until just two contenders remain and the one with the most -- most of its remains. it is new to new york but not to the u.s.. it was first used in a local election in ohio in 1915. san francisco, minneapolis, and santa fe are among the cities that currently employ it in municipal elections. five states used ranked choice in 2020 and in 2020, maine became the first state to adopt the system for a presidential general election. while it illuminates the need for runoffs, it will take time to tablet the votes.
officials say the winner may not be known for weeks but with registered democrats outnumbering republicans by a huge margin, it's likely that whoever prevails in this primary will become the city's next mayor. caroline: traffic jams could be a thing of the past as more companies move into the flying taxi space. and with amazon's biggest sales event of the year about to pick off, expect total sales for prime day to be 11 and $12 billion. the firm has an outperform rating at a cool $4000 price target. this is bloomberg. ♪
caroline: apparently flying taxiscaroline: are no longer the stuff of science fiction. they have gotten a lot of attention from investors. one company is set to go public on the nasdaq of the reverse merger. my colleague matt miller and francine lacqua spoke earlier with the cofounder and ceo who has his flight set that his eyes set on a newark to jfk shuttle. >> we are developing an all electric vertical jet. it is seven seat aircraft and we are offering these aircraft in an intercity shuttle service that offers high-speed connectivity between cities and
enables us to achieve hours of time-saving. the new york jfk route is probably one of those i'm getting asked about everyone who is in new york and we could save a lot of time on this route. we are also excited about flying longer trips we can achieve hours of time-saving on a high-speed connectivity without the need to build new rails. this is an opportunity to provide high-speed connectivity for millions of people around the globe. >> it looked like a guy playing video games but i'm guessing these will be drones. they want to be flown by a pilot in the vehicle and they will be electrically operated. >> yes, it is all electric. it will be flown with a pilot on board fitting in the aviation
regulation framework so you will have a pilot on board certified with the same safety standards as a commercial airliner. the unique advantage is it is all electric, is a fully sustainable new transportation system. it can take off and land vertically so you need very little space. in the last big advantage of our last tech tech -- our last technology is it is a close engine and thus we can basically be market leading on the key enabler of the sector. so how far away -- >> so how far away from you -- how far away are you from getting it certified and making it viable? >> we are years away from
certification. we have had five years in technology developed, where you have also seen the footage of the aircraft a couple of years ago and we have learned a ton of things in testing these airplanes. we actually have a very strong partner, and they are building multiple landing sites at first in florida and they are also operating the infrastructure. >> what is your biggest concern? green or safety? >> safety is your number one priority always in aerospace. for that reason, we have hired an extremely experienced airship leader space dish aerospace leadership team that has
supervised some of the most complex airliners. besides the safety aspect, i am an engineer at heart so i am totally focused on getting the product rate and service right have the best experience for our customers. caroline: from technological advances in the sky to innovation around agriculture. electric vehicles are not just being used for recreation. ev's are finding a setting in farms. >> a crop of electric tractors is slowly sprouting in america, replacing diesel burning rigs with the same kind of disruption we are seeing on the highway. ♪
this is the monarch tractor. 5000 pound machine that recently hit the market and got traction with the vineyards here in california. not only is it silent but it is scenting, outfitted with an array of cameras and technology, it can drive itself to help farmers monitor from afar. it helps agriculture empires prepare for increasingly high hurdles on diesel admission while marketing a cleaner crop. there are a handful of startups right now. but only monarch has drawn investment from a tractor giant on part with john deere. the challenge is not different from electric sedans >> range -- sedans. ranger hours. -- range or hours. they hope to solve this quandary with redundancy, selling
multiple batteries that can be swapped out. the monarch is roughly twice the cost of it diesel equivalent. the calculus is that men are saved, less maintenance and a longer lifecycle will convince farmers to pay the premium, at least until the battery economics improve. and while it will be a while before giant industrialized machines, startups are not concerned. small industrial tractors are by far the largest part and the fastest growing part of the market as well. markets move in lockstep with crop prices and as prices for crops pickup for the first time in years, farmers will be feeling flush. we can expect to see a lot more monarchs in the heartland. this was how we move. for more stories like this, follow us on your favorite
platforms. caroline: power supplies come under strain as mercury rises across the southwest. more on the threats of blackouts. micron was one of the worst performers on the s&p 500. and price targets dropping as supply chain disruptions. seagate and western digital also lower. from new york, this is bloomberg.
officials struggled to address growing threats of drought and wildfire. for more, for all of the happy easter coasters who are perhaps not aware of the plight, set the scene if you are living in california. >> particularly in texas and california they are looking at a pretty extreme heat wave. texas demands are forecasted to gigawatts above what we would typically expect this time in june. california is also experiencing drought on top of these conditions. the entities that oversee greater reliability in the region have issued alerts indicating to the public that
they need to start reducing consumption of electricity in order to maintain system reliability. caroline: basically having to turned on -- turned down your air conditioning when you really want it. what are the long-term fixes here? i feel like we reported on it heavily last year. are we getting marginal supply, is renewable coming to the rescue? we hear more and more about the spending that is wanted to be directed that way. >> looking back to texas in particular earlier this week, we did see production in solar week in particular, we typically expected around three gains of solar. we are going into six gigawatts of production around the peak,
nearly double compared to last year and that was very critical this year in june in particular when we start to see temperatures around the time we would expect to see lower production kick in. especially in texas, with people keeping the lights on. we did start to see reserve levels stiffen monday, tight conditions in electricity supply. we had a couple larger thermal units off-line, a large gas unit as well as a nuclear unit off-line representing nearly three gigawatts of capacity that we needed. caroline: we have got solar coming in now. the fact that texas has built a grid that is so self-sustaining
and therefore open to issues, how are we seeing longer-term fixes? these are not just exceptional issues in the summer but the winter, too. >> focus is on the short term but we have seen agencies adopting strategies around adequate resource capacity season overseas and so there is some variability in what we can expect for resource production. different weather conditions can play a role in either encouraging or depressing wind or solar production. so we are starting to see more active planning around that specifically. we will also start to see a pretty extreme buildout of solar and storage capacity
particularly in ercot. they will start to see pretty big increases in storage in the region. caroline: realistically, how much can renewables fill the gap year? -- gap here. the output of older, more damaging forms of electricity are so much more efficient. is it just the case of having to have an awful lot of them, at what point do you think we'll get to the efficiency levels we need to be able to shut down natural gas and the coal authority? >> that's probably a little ways off and i am probably not the best person to comment on that, the more short-term focused, but we will need to see massive
buildout on the renewables front to put a dent in some of that capacity coming off-line. other regions, like the midwest, we do see some additional expansion of thermal capacity. caroline: rebecca miller, shining a light on an incredibly hot summer once again and how we manage to fend off such situations. we are thinking of you out there in california and texas. breaking coming from airbnb. increasing flexibility on cancellation. we understand you can permit booking cancellations for free up to 30 days prior. there had been issues about the pandemic when people wanting to cancel so they are changing conditions.
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david: it's a world of diplomacy and maybe monetary policy. what difference will it make? this week, blackrock and the fed starting to ease off the gas pedal and what it means for investors. morgan stanley on identifying asset bubbles and what happens when they pop. >> generally cannot tech oriented bubbles tend to be good. i think that's true because there is a lot of capital. david: and larry of harvard on how we know if the ion