From the heart of where innovation, money and power live, in Silicon Valley and beyond. This is Bloomberg technology with Emily Jay. I'm at Ludlow in New York in Emily Chang. This is Bloomberg Technology. Coming up in the next hour. A major sell off hits tech and the markets at large, nearing two lows. Will have the latest in a moment. Plus, apple is jumping into the sports industry, from the Super Bowl halftime show and NFL Sunday ticket to tonight's potentially historic Major League baseball broadcast. We're talking about how the company is eating away at traditional TV's most coveted assets. and NASA hopes to launch the Artemis Mission to the moon next week. We'll get the latest from our space reporter, Laura Grush. We'll get to that in a moment, but first let's talk markets. Friday was rough a sell off, and risk your assets deepened as spheres of a global recession intensified. Tech was not spared, with the NASDAC on falling to its lowest level since June, the SMP touching two year lows and wall streets fear gauge soaring toward a three month high, joining me to go over this less than happy and to the week. Who else but bloom bows, Casey Gray felt? I'll ask you again, how are you? I'm all tired. It was an intense day to an intense week. I remember there was a fed meeting all the way back on Wednesday. It feels like a year ago. Let's go back to basics. There was a fed meeting on Wednesday. The Fed raised rates by seventy five basis points and the dot plot, the four court cast, showed four point four percent rates by the end of the year, four point six rates further out, the terminal rate. Exactly? Why have markets reacted like this? Well, Jeron power is pretty clear on Wednesday that this wouldn't be a painless process. That big, aggressive vision up in the dark plot. That's going to cause pain for the economy. That's causing pain for the market. But today was especially dramatic because it actually started over in England, and you would liz trust's government unvel, I believe, the biggest tax const since two this is into a economy that's already dealing with ultra hot inflation. You have a very aggressive Bank of England and again, if you think about the global tightening that's going on. This is just another crank tighter and that fear was definitely present across global assets. So there was just another thing to add anxiety to the market. So I'M gonna look at this chart on the Bloomberg terminal, which shows the kind of decline we've seen in tech stocks in particular, but also the push higher in real yields. And we keep talking about the Fed. Every week I'm here with Emily Chang, I'm talking about the Fed. We talk about it because higher rates discount the present value of future profits for tech stocks. But it seems like a one to punch for the audience. I just did a one too and it looks great and you're exactly right. So you're using some C F A terms here, but they're really important, and that real yield, the fact that real yields have screened high again, the yield that you get on bonds after accounting for inflation. That is sort of the basis for valuing other assets, and the fact that you are seeing those really yield scream higher. That has a lot of implications for duration heavy stocks such as tech stocks, those growth stocks, where a lot of those cash flows are expected in the future. They're worth less when you have that discount raycle and speaking about growth, the fear is about slow down in global growth. That's almost the other punch right that the other consequences of the Fed is that actually, even if you're a megacap tech stock like an apple and Amazon, we've seen declines in those that the world's a different place now, the economy slowing down and they might suffer the other fear, so to speak, the fear games fear here vix. Talk to me about the Vicks. We don't cover it as much on the tech show, but briefly explain what it is and what that is. So the VIX. It's looking at expectations for volatility for the next thirty days and it's been a bit of a frusting, frustrating indicator to watch because if you look at the Vix, it's been relattively low. I mean it was getting back to thirties today, but it's been very low relative to some of the levels that we saw during the pandemic during the past two years. And you compare that to what we've actually seen in the equity market, it doesn't feel like it's matched the reality on the ground. But you are starting to see some movement in the vix. Today it got to a three month high, so some of that fear is starting to show up in the vix and what's been a very orderly sell off thus far. It's the weekend. You can take a rest. The Fed speak to come. Fed speak to come. My sources tell me, Romaine postic specifically, that there's thirteen unique fed speakers next week. This is going to be important to watch. Even if you're a tech investor, you should keep an eye on the Fed speak because it's going to be interesting to see what any sort of message, any sort of crumbs, they leave about how they feel about this market reaction. If you go back to after Jackson Hole, this speech that Jeron Powell gave, markets puked in the aftermath of that and then you actually had minneapolis fed President Neil Kash cary say that he was happy to see that market reaction. I don't know if we're going to get anything as explicit as that, but any sort of hints along that line, that line would be very interesting. Puke, what a happy way to end the week. Bloomberg's Katie Greifeld, thank you very much. Apple has become a serious threat to traditional cable providers propped up by live sports. Three major storylines are playing out that could make apple a real player in sports broadcasting. Apple TV has only aired MLB Games for a few months, but tonight it could have record viewership, with Aaron Judge One home run away from MLB history. Apple Music will become the title sponsor of the Super Bowl halftime show, taking over from Pepsi, and Apple is in talks with the NFL to take the AAL assets Sunday ticket package from direct TV and a deal that could top two point five billion dollars. Here's how crucial this could be for apple. A recent survey of NFL fans found that forty percent of them definitely will or are likely to subscribe to Sunday ticket went offered by a major streaming provider. Here to discuss is Bloomberg's apple reporter, Mark German, and Bloomberg business of sports reporter Brandon Sapienza. Brandon, I'm gonna Start with you. Big Game Friday night and it matters for a guy called Aaron judge and it matters for Apple TV. Set the stage for us. Why do we care? Well, I mean Aaron Judge Could Tai Roger Marris with the sixty one time run. Obviously that's really big news. Yankee fans have been waiting a long season to see that happen, but they might not get I'll get the chance to do that tonight. So a lot of them are really upset. They've personally attest to that they might not get the chance to do the mock. Give us the specifics. Hey, what is the deal that apple has with Major League Baseball? So for the past few weeks, as you said, or a few months I should say, through the Apple TV APP on all of the supported devices, apple has aired two MLB Games every Friday night. They put the schedules out a few weeks in advance. It just so happens that this agreed upon game featuring the Yankees and Aaron judge tonight. That's the game that everyone in New York wants to see and because of that agreement it won't be aired on the Y S network. That's the local network in New York. So if Brandon wants to watch that, he won't be able to unless he signs up for Apple TV. Now the positive year is that this goes against some speculation I've seen, you don't actually have to pay for it right. Some people thought you had to pay the four day nine per month for Apple TV plus to actually view it. That's not the case. Still, the MLB deal is free. At some point, though, I think they'll charge for it. But for tonight you really just need an apple TV APP or access to the APP in order to watch the game. Jens, I wanted to get the mood music out there across New York. So what did I do? I took to twitter and I did a twitter poll and I asked Yankees Fans, Major League baseball fans, WHO's watching the game tonight on Apple TV plus? That's the results. Now, okay, Pinch your salt here. It's not exactly scientific. Around six votes, but no, forty three point five PC. I guess a lot of people are going to go and see it themselves in person. But if you are a Yankees fan or you're a baseball fan, brandon, it's a complicated season. Yeah, what do you need to do across the season if you live in the state, in New York to Actually Watch a game? So if you live in the city of New York, you're actually for services to get you a Yankee game. So either you need one of to view one of the PEACR Games. Need Peacock, then you need Amazon TV, Amazon prime. They needed a cable network or something that has access to the yes network, which I think is only direct TV stream in the case of if you want to stream if you're unplugged from cable. And then obviously you need apple TV, which I know, as Mark said, it is free, but for a lot of fans it's a lot of services and a lot of money that may need to be laid out and it's it's obviously not ideal in this inflationary environment. Mark, what is Apple's play here? What is their strategy with sports more broadly, because it's not just baseball. So you heard that problem, the brandon outline where you need four different services to catch all your Nikee Games? Right, that's not alone for MLB. Right, I'm an NBA Fan. Sometimes you need lead pass. Sometimes for the Lakers you need spectrum sports net, sometimes you need ESPN. Right. And so apple's ideal world is you throw all that away, right, you subscribe for one price every month and you get every game you want across every different sports league and they're gradually heading there. Right this MLB partnership just the beginning. You mentioned the talks to the NFL for Sunday ticket, just the beginning. The MLS deal. It's a ten year deal. That's a component of it. I think they'll eventually go after the NBA, college, Maybe High School Sports, who knows? They want everything. They want one single monthly price. Build your own all the card system them where you can pay, you know, x amount for M MLB, NBA, NFL. Pay a different price for this. Build your own packages as standalone apple originals, non sports package. They want to own everything right and this has been a big week for them. Those talks are ongoing. You mentioned that deal for about fifty million where they're going to be replacing Pepsi right as a sponsor for the, you know, halftime game right at the Super Bowl. That's a big way to get apple's brand out there, make more sports fans familiar with the apple brand, apple music, apple TV, etcetera. And of course the situation that brandon outline tonight. That's going to get the apple name out there for a lot more people. And obviously this Aeron Joe Situation is perfect marketing for apple and apples are going to give in and let yes, Co stream the game, that chart you see on your screen. So a global audience seems so important, right. Apple's budget six billion for streaming in prime video, fifteen billion brandon. Isn't just inevitable the Apple Amazon streaming giants come to dominate sports television? Absolutely. I mean, when you think about who owns all these products, who owns an apple product? Who owns a subscription to Amazon prime, you're talking about a lot of people, with tens of millions of people, and all of these people are also motivated by more and more quality content, turning to streaming, turning off from cable and just focusing all their attention and their money there. So it is inevitable. Let's talk about apple mark and its efforts around the NFL and halftime show for the Super Bowl. Right. This is not a play for the broadcasting, this is a play for advertising. This is a pure advertising way, pure way to get their brand out there. This is a five year deal. Obviously, anyone who watches the Super Bowl knows that Pepsi has sponsored them for many years now. Apple is going to be the forefront of that and you can just probably imagine that Tim Cook, Eddie Que, their head of services, you know, a lot of their team will probably be there. You'll see them on camera there. They'll see their brand plasted everywhere. They'll make a whole big deal about it. I'm interested to see if they're going to get back in the game of making commercials right for the Super Bowl, something they did many, many years ago, obviously with the original MC but they haven't really done much of that since then. So I think this is a big branding opportunity for apple. And despite all the cash they have on hand right a hundred billion plus. You know, fifty million dollars still fifty million dollars. So I think they see this as a significant way to put their foot down and say hey, we're here too for sports. Uh. And I think Brandon's point about all these other services is also pretty interesting. And what's really cool about Apple TV is they have a feature called Apple TV channels. Right, so, let's say Amazon or another provider, Peacock Brandon mentioned, they get some really cool deal with one of the major sports leagues. Potentially, maybe that could be tapped through in Apple TV. So the Apple TV APP you can access to apple services, apple partnerships, but maybe those from NBC and Amazon and the likes of those as well. Mark, you've got your finger on the Pulic of Apple, not just in the product perspective, but it kind of brewed a strategy. So talk to me about Sunday ticket in NFL. Is Tim Cook and Co really willing to just keep spending that cash because they got cash to burn? They have a lot of cash and they want to use that cash to make even more cash, right and so right now they're making about twenty billion dollars a quarter right on services, about eighty billion dollars per year. Imagine that investment, that two and a half billion dollar investment, what that will do for apple's bottom line. Right. Maybe one day we'll be talking about nine billion or hundred billion dollar annual income from services, with NFL just the beginning of that. That's a big deal. And, as we all know, NFL Sunday games. That's the Holy Grail, not only of the NFL for football, but the holy grail of all of sports. Right even the NBA doesn't want to broadcast their games to go up against Sunday games from the NFL. So I think that would be pretty, pretty big for the company. Hey, how often does it come down to cash on cash, on cash? Boom bugs, malt gum and and Brandon Sapienza. Thanks to you both, and be sure order to catch the lineup tonight at seven pm New York time. It's our new show focused on the sports betting industry. Tonight, former Dallas Cowboys Dez Bryant joins the program coming up, we'll take a look at the resurgence in climate focused investing as companies and governments doubled down on lightening their carbon footprints. Our discussion with climate focus firm voyage a ventures. Next, this is Bloomberg. This Week is climate week in New York, with the summit bringing together international leaders from business, government and civil society to showcase global climate action. So let's wrap the week up with voyage adventures, a new firm that's raised a hundred million dollars for its first fund, backing tech startups working on things like decarbonizing transportation, energy systems and foods and materials production, to own name a few. Let's say all about this with the CO founders and managing partners, Sierra Peterson and Sarah's classic, joining me now. Sarah I'll start with you. Climate Week. A whole week the world is watching to events like this really induced change. Yeah, I mean climate week is, I think, a good illustration of the unparalleled momentum we've seen in this past year in recognizing the opportunity in addressing climate change and climate stabilization through investment and the policy that has shown up in a major way in the United States to do so. So every week it's climate week in some way. Sarah, I think what I find so fascinating, especially in private markets, venture capital, you're putting money in a portfolio of companies. Some of them will make it, some of them won't, and a lot of these ideas they always seem a bit nascent, right. They always seem like things with great promise. How do you decide to where you deploy capital? Yeah, so we invest in companies building product and services that are positioned to decarbonize some aspect of the global economy. And these are the world's biggest markets for talking about energy, food and materials, production, transportation. And what we recognized, and part of the reason that we started voyager now when we did, is that many of these foundational technologies are reaching the point where they are cheaper and better performing than their fossil field incumbents. Sore, of course, seeing this in the area of electric vehicles, where the total cost of ownership of light duty vehicle is less than that of a combustion engine vehicle and the performance is better. And so we look for opportunities in these expanding markets where foundational technologies are positioned to Outcompete, in the near term, in the next few years or even today, their fossil field incumbents. And I think it's important to recognize these technologies will continue to get better over time and the fossil fuel based incumbents will continue to be ever more or less competitive. Sarah, let me as see that question in reverse. Where are you not investing? Where do you not put your money within climate carbon reduction? And why? Yeah, certainly so. We are an early stage venture capital firm. So as a venture capital firm, we seek investments that have a venture scale return profile. There are plenty of opportunities for investing in the overall transition away from an unsustainable and carbon intensive economy around the world. There are infrastructure investments to be made. There are certainly interesting opportunities to invest in the carbon markets themselves. We are investing in early stage technology companies that hold, as I said, an interesting and venture scale return profile. Out of fund one, for example, we look for companies that we believe, through a single investment, can return the entire hundred million dollar fund through that investment. So you both raise around hundred million in April, I believe. I want just take a look on the screen at some of those backing you guys, some of your lps, really interesting names from industry, for example. You know one being Jeff M Ol of GE, Long Time at G, one of these great big American companies, and we talked in the intro about how climate week brings together policymakers business. When you look across corporate America at a General Electric for example, do you think that they are a doing enough, Sarah, but be doing the right things with their investment? Yeah, many companies are recognizing the opportunity in the transition and they're seizing the opportunity. I think certainly not every company is and all companies could be doing more. What it's difficult to recognize is that once technology is hit in flection points where they are better performing and less expensive than the technology paradigm they're replacing, they continue to get better and they can continue to get are at a faster rate, and so we think these transitions will happen linearly. In reality, they actually can happen much, much faster than that, and so timelines and inflection points that feel like they might be twenty years out in decarbonization, in the transition from combustion to clean electricity, might actually be happening in ten years or five years. And corporations that don't prepare for that UH and then, are not ready for what is potentially the most rapid transition of economic activity the world has ever seen, are not only going to be at risk for their business, but they're also going to miss out on a fifty trillion dollar opportunity. Sarah, it's been a really interestingly digging into the actual technologies, the things that the founders are trying to improve. Talk to me about some of your portfolio companies, the areas and the technologies that you're most excited about. Yeah, so we invest in foundational decarbonization, that is, the technologies that are poised to de carbonized big swaws to the global economy. These are mobility, energy itself, food materials production, the built environment. We are backing companies that are poised to, should they succeed in these markets, really address emissions at scale across the global economy, and I put fully reflects that. We invest in software companies, we invest in deep technology companies, we invest in biotechnology companies and all our positioned to compete with the fast field paradigms of prior technology based on price and performance, belong right. Voyager Co founders and managing partners, Sierra Peterson and Sarah's classic. Thank you very much. Now Nicola, founded Trevor Milton, had an odd reaction when shares plummeted on their NASDAC debut. Back in Milton was, quote, hyper focused on the company's stock price, so much so that when the shares fell five on their first trading day of June, he thought something was wrong with the NASDAK. Durors his criminal fraud trial were told CFO can brady testified that he explained to Milton the decline was simply supply and demand, but Milton insisted brady contact the exchange. Brady told jurors that it was a constant battle to get Milton, the company's biggest shareholder, to focus on building long term value rather than obsess over retail investors and stock price fluctuations. And Ford has begun the largest factory project in its one hundred and nineteen year history. The automaker has started construction of its five point six billion dollar electric vehicle manufacturing complex in western Tennessee. It's known as Blue Oval City. By six thousand workers were expected to be building electric pickup trucks and the batteries that power them in a joint venture with South Korea's SK innovation. Now market loads for the year are in sight after this week's sell off. All three major indices dropped this week after the Fed seventy five basis point hike and signaled higher rates will remain. Tech was not spared. Our next guest says there could be some bright spots along with challenges for everyone from startup founders to chief executives. David Crawford is partner at Bain and company as well as its global head of technology. David the week that was what do you make of what's going on in the world? Well, good question, I think. Um, thanks for the question. I think we we see long term. You know, Innovation and growth in the tech sector. That said, we've already seen our clients swallow kind of equity and reduction this year. That's mostly been multiple adjustment. The second half of the year, we think, is actually about sorting out how much demand pulls back. We we believe there are major disruptions from supply chain as well as war and now the recessionary effects of a demand pullback which, as we look into our client base, we think that's actually going to be revealed to be more substantial than people think and surprise the markets more so. Volatility is a US word again. The world is volatile, the markets of volatile, but you see an opportunity to do what you call kickstarting the rebuild. What do you mean by that? What we talk about is that in a downturn there is opportunity and particularly if you can be an incumbent or someone who is strong in your sector, there's a flight to quality. It creates more opportunities for you to grow. It creates more opportunities for you to do m and a, it creates more opportunities to do do deals. But there's a process of managing through the downturn such that you can gain share and gain market position. It's kind of a double edged sword right were, especially when we talk about growth equity, because a lot of these innovators they need cash, they need money to to grow, to expand what they're doing. But if you're an investor, that carries risk in this environment. So how do you pass that? Yeah, great question. We see growth equity as a direct result of the unique innovative conditions in the tech sector today. It turns out that the markets have put down, over the last decade, enormous amounts of cloud computing, pervasive connectivity, GPS infrastructure at center and it's created an environment in which new companies can be built and scaled extremely rapidly. And if you understand that playbook, you can invest behind it with a growth equity formula that is extraordinarily high, high payback Um. So I think that formula has not gone away, those conditions have not gone away. We're going to have to work through these uh, these uh difficult environment, you know, in the next six to twelve months, but after that I think we'll have a return of the same extraordinary innovation conditions. David was showing a lot of red on the screen on a year to date basis and equity markets on a weekly basis. But it's Friday. Let's let's think about the positive, the opportunity, and I enjoyed your latest research right because you're talking about specific areas, the role of web three in rewriting the rules of digital user identity, you're excited about ai in customer success. How do you convince invested that now is the time to deploy capital to those areas? Yeah, I think it's been interesting to watch equity multiple adjustments. The hardest hit by far have been the smaller companies with the extraordinarily high growth rates. There's been a flight to quality and that just makes a number of extraordinarily innovative and important, frankly, assets available at much cheaper prices than it would have been otherwise. So I guess we would say innovation is very much alive. We're looking down the barrel of a massive growth in the metaverse, web three dot o being one piece of that Um, and we just think that this transitional effect creates opportunities for smart players to make good bets. David, I'm going to bring up a chart which I saw in your research which shows the growth of growth equity relative to public markets, equity venture capital, and what we see in terms of buyouts in the market. What is this story that this chart is telling on our screens? Yeah, great question. The basic story there is the extraordinary growth of the growth equity investor trunch, you know, and growth equity is not a new concept, but it's it's meant to be targeted at a life stage that you know, is going from, uh, you know, stability to scale and, as I mentioned before, we just think it reflects the growth here. Has Grown to of total capital deployed. That's extraordinary. It's doubled since the last two years. So we just think it reflects the conditions of innovation that are ever present in tech right now. The pervasive availability of cloud computing, of Um connectivity, of Ai, of technologies, payment systems, you name it, just allows a good concept to be created and scaled extremely rapidly and investors have sort of bad out. They've actually that into a great business. If you're an investor anywhere in the world in the last two years you've done a bit of reading about semiconductors and the global chip industry. Everyone is trying to become an expert on the chip industry. Where do you see the health of the chip industry in terms of supply, bottle Max, but but also the story has turned so quickly to demand. Yeah, the chips story is is a multifaceted one. It's started out two and a half years ago with the auto industry canceling is, its its orders and those orders being reallocated to keep factories full. Um, when the economy recovered more quickly than people thought, there was just no availability because the factories protect themselves by backfilling. Since then it's become, you know, an extraordinary story of global disruption that occurs as, uh, individual players lose their orders, underproduced, overproduced, etcetera, and it shows us that how dependent we really are on hips. And it's not just leading edge chips, it's chips at all Um at all places within in the node progression of the fabrication and that is also, of course, shone a light on the relationship between the United States and China, and I know that your research is touched on that as well. Yeah, there's a whole another layer to this story, which is that, you know, the world has found itself extremely dependent on a small number of companies to produce these some of which, one of which is very important, is Taiwan. Semiconductor in Taiwan and to the extent Um there's a single point of failure in your supply chain. Uh. This chip shortage has really highlighted for folks how how dependent they really are on that single company, and many companies are looking to diverse five. With all that in mind, give me the David Crawford projection for three in the world of tech. Yeah, simple, in any of the back end of three will be about innovation and Growth and and sorting out how to win here. I think the next six to eight months will be working through the disruptions that we're experiencing now, Um, and those include everything from the Geo political environment too, as you describe the supply chain shortages, one of which is the chip shortage, Um, as well as the recessionary effect of demand pulled back. All Right, David Crawford, partner at Bain and company and head of its global technology practice. Thank you. Time for our crypts I report, and today we take a look at what we call oracles so around crypto contribute to Shinali Bashak is here with our guest Shal take it away. Thank you, ed. We're going to talk to Mike K Hill. He's the Pith Data Association director, and we're going to talk about oracles here, because data is hard to combine the traditional financial system. It's hard to combine in crypto because it's such a vast landscape. So when we're talking about Oracles, what do you really mean and what does it mean for the universe of smart contracts that need that external data from the real world services that really provide that gateway Um, to each other? Sure, first out, thanks so much for having me. On block chains, as you mentioned, we've got smart contracts and the smart contracts will execute rules based decision criteria that can move something of value. So it could be bitcoins, it could be ethereum Um, and when they are doing this, there's no third party intermediary that's going to make any judgment calls. So they're dependent upon the inputs and that inputs come from data Um, and so that data is that the quality of that data is paramount, and so oracle networks provide a way to get high quality data. It's very trustworthy, and the way that they do that is by having multiple contributors distribute that data directly on chain and it becomes very robust and resilient. Now how does this really help big institution and high frequency traders really engage with the crypto universe with a lot more rigor? Yeah, so what's really cool about the pith network is it has attracted some of the largest trading firms and exchanges to contribute their data directly onto blockchain. We think about the pith network as being really high quality infrastructure that can power the next generation of decentralized applications empower the growth of web three. So it's really the tooling that large trading firms and exchanges come to expect to make this institutional grade so that they can participate in future. You know, it's interesting because when you think about how it used to work, data is proprietary. Data is something that not a lot of people like to traditionally share. So what do these firms get out of it by starting to share data and starting to amass more data altogether? That's a great question. So there's a reward mechanism within the pith network where the data providers are incentivized to provide that data on chain Um. And what has been very exciting is, in a similar capacity to how AIRBNB has enabled an entire new inventory of places to stay. The Pith Network has opened up and unlocked reserves of data that came from trading firms that never ever distributed it for external use before. Um. Some of the participants include jump trading, Jane Street Susquehanna, and they're contributing their data directly on Shane and this is something they've never once have used externally before. So it's very cool. Mike, you used to work at Morgan Stanley and you know, when you look at this kind of high frequency trading world, all those companies that you said that you work with, like Jane Street Susquehannah, why is it that high frequency trading firms are more likely to engage with this universe then a large firm like Morgan Stanley? You see some of those big houses starting to trade in Crypto, but it's really at the margins. Yeah, I agree. I think that the first movers tend to be ones that have um smaller committees around where they can enter into markets. Um. So these are really the nimble firms, Um, the ones that get in early. They're comfortable with both the cryptography risk as well as potentially some regulatory risks. Um, and then navigating that landscape is never easy, but it's a calculated risk that they have to take. For the banks, I think that they need to get a little bit more comfortable with the caliber and the scale of risks that they're going to get into and I think they're making a lot of progress, as you mentioned Um, and we will expect to see them come in over time. And what would it take, do you think, for decentralized finance to do everything that you would see in the traditional financial system? Yeah, I think it's going to take a lot of development Um. There's some things that crypto does really well, which is like, you know, sending things around the world of value Um, with low friction Um and low fees Um. And then there's some things that in centralized finance it does really well, for instance, privacy. Everything is fully public on on blockchains and that's not necessarily the best thing for um like a trading engine, or for Um to send like your Benmo account and have everything to be public Um. So I think that we're going to see better technology emerge Um and this infrastructure tooling is really designed to allow people to build stuff and build stuff that can compete with the real world of centralized follow ups I'd love for you to talk about your work also with certain blockchains, particularly Salana. Of course we've come off the merge. We're talking a little earlier this week down totally, Yakovenko, you know, what is it? What kind of data do you have? What kind of decisions are you making as this ecosystem evolves to know what's going to be more dominant moving forward? Yeah, so pith started its life about a year ago on the Salanta blockchain and it became very quickly the canonical oracle to be used on chain over the applications or securing their data with that network. Um, and it is now going multi chain and it's really just if you think about these chains being similar to operating systems, you want to have the best possible toolings to attract users to build applications on these operating systems, Um, and so having pith available on chain is a very important component um for these these layer ones to compete with one another. So it goes to all the E v M chains now and will extend to the new ones, some with competitive aspects, to Salona, using different languages as well. I have to admit, Mike, a data oracle sounds a bit like a mythical creature. So what exactly what is the function that you serve in this community? What kind of data are we talking about here? You know what is the ultimate goal? Yeah, it does sound like a mythical creature. The name does come from Greek pathology and pith comes from Pythia, so there are ties in there. But today the fifth data Um Spans the sector of Crypto, US equities, F X, metals Um. So you've got a bit of everything. You can see the price of apple updating on chain every four in the middle seconds and being used by anybody Um. But you can go on on the website and see this information. We expected to have that scale out other categories that people are interested in using them in smart contracts. I'm with you. If you can make mythical creatures to make foreign exchange sound all the more exciting, I am in for that. Mike Cahill, that's the CEO of Pith Data Association. Thank you so much. Ed Back to you. Thanks, Tony Mythical let's talk about space. NASA said earlier today the long awaited launch of its space launch system is still possible next week after a successful fueling test on Wednesday. But bad weather is on the horizon. Meantime, we might also be closer to SPACEX, is starship conducting in orbit or test launch, just not as close as you might think. To wrap the week in space, Bloomberg's Lauren grush joins me on set in New York. Yes, let's start with sls. What is going on? That's a great question, something I'm kind of trying to wrap my head around as well. So yes, NASA is trying for their third launch attempt of the space launch system, the first who had been scrubbed for various technical reasons, and they gave an update today. They're still targeting Tuesday septem however, as you mentioned, a tropical storm or tropical tropical depression is brewing off the coast of South America. The latest forecast shows it heading straight towards Florida. All sorts of emergencies are being declared over there, so it's not looking good weatherwise. NASA says they are they're keeping an eye on it. They're still tracking towards a launch, but they'll make a decision, hopefully by tomorrow morning or early afternoon, if they need to roll the rocket back from its launchpad into the hangar. So Wednesday was kind of key. I think we have some video of it, this fueling test. Yes, what is that? So Um, during their second launch attempt they had a hydrogen leak and they found they needed to replace a component on the rocket, and then what they wanted to do was to test if that that worth that they had done had actually worked, and so what they did on Wednesday was basically simulate what they do on launch day by filling the rocket with propellant and making sure that there weren't any leaks. Unfortunately, there were some leaks that propped up during that test, but they were able to push past them after some troubleshooting and they were able to successfully fuel the rocket just as they would on a launch day. So they said that they met all of their objectives despite those issues, and so they're still they're ready to go. They want to launch this thing, but there seems to be all these different varia questions. Are you ready to go? I've gone to Florida twice now. I'm ready to book my ticket for the third time, but I would prefer not to go in the in the path that there is a serious reason why we're paying attention to this launch, right, which is there a bigger goals ultimately? What are those bigger goals? I think we have a map which shows if and when this mission launches, it's for a reason, right. So sls is part of NASA's plan called Artemis, which is this big, ambitious program to send the first woman, in the first person of color to the moon, and this is just the first step. So what they want to do with Artemis one this mission is show that the S L S, and it's in NASA's Deep Space Ryan crew capsule, can actually work. There won't be any people on board, but they want to send it around the moon to just kind of have this demonstration so that when they do put people on board they're confident that they'll be safe. Lauren, this week Elon Musk has been tweetingcker and one of the things that he tweeted was in response to a question on starship and when starship will do its first orbital test flight. He says November seems highly likely. We will have two boosters and ships ready for orbital flight by then with full stack production. What does that mean? Well, I if you've been following Elon's tweets, which I'm sure you have. He does like to make very aspirational goals for his flights. So you know, I think he said earlier when March it was ready, maybe April. I think back in even he said it would be launching in six months. So every time he gives us a launch date I take it with, you know, a boulder sized grain of salt. However, that said, SPACEX has been been making great progress on starship development. They had recently had a seven engine raptor static fire next the back. Next big goal would be to static fire thirty three of those engines and that's that's a lot of engines at once. So there'll be a lot of flames. They've also been prone to set the Boca Chica area around them on fire sometimes when that happens. So we'll we'll be keeping an eye on that and once that happens, then I think will be realistically getting closer. And to end Friday on a positive note, I understand that there's a meteor headling, headling, hurtling towards earth, but that we're not in danger. Even so, NASA, we're going to try and crash land something into it so it's not hurtling towards earth. It's it's completely fine, completely benign. It's the dark mission. NASA is testing out a method for potentially nudging asteroids out of the way if we ever were to find one coming towards earth in the future. So this is just a test. Nobody needs to worry, no one needs to, you know, pack up and head for the hills, though I don't know if you'd be safe there. Um. No, this is just a test, and what they're doing is they're intentionally sending a spacecraft into an asteroid to nudge it off of its course and then that way, if we were to ever have an asteroid headed our way that we knew about, that could just, you know, make it veer away from Earth safely. This is just a test. Blunt Bergs, Lauren Grush, thank you.

From the heart of where innovation, money and power live, in Silicon Valley and beyond. This is Bloomberg technology with Emily Jay. I'm at Ludlow in New York in Emily Chang. This is Bloomberg Technology. Coming up in the next hour. A major sell off hits tech and the markets at large, nearing two lows. Will have the latest in a moment. Plus, apple is jumping into the sports industry, from the Super Bowl halftime show and NFL Sunday ticket to tonight's potentially historic Major League baseball broadcast. We're talking about how the company is eating away at traditional TV's most coveted assets. and NASA hopes to launch the Artemis Mission to the moon next week. We'll get the latest from our space reporter, Laura Grush. We'll get to that in a moment, but first let's talk markets. Friday was rough a sell off, and risk your assets deepened as spheres of a global recession intensified. Tech was not spared, with the NASDAC on falling to its lowest level since June, the SMP touching two year lows and wall streets fear gauge soaring toward a three month high, joining me to go over this less than happy and to the week. Who else but bloom bows, Casey Gray felt? I'll ask you again, how are you? I'm all tired. It was an intense day to an intense week. I remember there was a fed meeting all the way back on Wednesday. It feels like a year ago. Let's go back to basics. There was a fed meeting on Wednesday. The Fed raised rates by seventy five basis points and the dot plot, the four court cast, showed four point four percent rates by the end of the year, four point six rates further out, the terminal rate. Exactly? Why have markets reacted like this? Well, Jeron power is pretty clear on Wednesday that this wouldn't be a painless process. That big, aggressive vision up in the dark plot. That's going to cause pain for the economy. That's causing pain for the market. But today was especially dramatic because it actually started over in England, and you would liz trust's government unvel, I believe, the biggest tax const since two this is into a economy that's already dealing with ultra hot inflation. You have a very aggressive Bank of England and again, if you think about the global tightening that's going on. This is just another crank tighter and that fear was definitely present across global assets. So there was just another thing to add anxiety to the market. So I'M gonna look at this chart on the Bloomberg terminal, which shows the kind of decline we've seen in tech stocks in particular, but also the push higher in real yields. And we keep talking about the Fed. Every week I'm here with Emily Chang, I'm talking about the Fed. We talk about it because higher rates discount the present value of future profits for tech stocks. But it seems like a one to punch for the audience. I just did a one too and it looks great and you're exactly right. So you're using some C F A terms here, but they're really important, and that real yield, the fact that real yields have screened high again, the yield that you get on bonds after accounting for inflation. That is sort of the basis for valuing other assets, and the fact that you are seeing those really yield scream higher. That has a lot of implications for duration heavy stocks such as tech stocks, those growth stocks, where a lot of those cash flows are expected in the future. They're worth less when you have that discount raycle and speaking about growth, the fear is about slow down in global growth. That's almost the other punch right that the other consequences of the Fed is that actually, even if you're a megacap tech stock like an apple and Amazon, we've seen declines in those that the world's a different place now, the economy slowing down and they might suffer the other fear, so to speak, the fear games fear here vix. Talk to me about the Vicks. We don't cover it as much on the tech show, but briefly explain what it is and what that is. So the VIX. It's looking at expectations for volatility for the next thirty days and it's been a bit of a frusting, frustrating indicator to watch because if you look at the Vix, it's been relattively low. I mean it was getting back to thirties today, but it's been very low relative to some of the levels that we saw during the pandemic during the past two years. And you compare that to what we've actually seen in the equity market, it doesn't feel like it's matched the reality on the ground. But you are starting to see some movement in the vix. Today it got to a three month high, so some of that fear is starting to show up in the vix and what's been a very orderly sell off thus far. It's the weekend. You can take a rest. The Fed speak to come. Fed speak to come. My sources tell me, Romaine postic specifically, that there's thirteen unique fed speakers next week. This is going to be important to watch. Even if you're a tech investor, you should keep an eye on the Fed speak because it's going to be interesting to see what any sort of message, any sort of crumbs, they leave about how they feel about this market reaction. If you go back to after Jackson Hole, this speech that Jeron Powell gave, markets puked in the aftermath of that and then you actually had minneapolis fed President Neil Kash cary say that he was happy to see that market reaction. I don't know if we're going to get anything as explicit as that, but any sort of hints along that line, that line would be very interesting. Puke, what a happy way to end the week. Bloomberg's Katie Greifeld, thank you very much. Apple has become a serious threat to traditional cable providers propped up by live sports. Three major storylines are playing out that could make apple a real player in sports broadcasting. Apple TV has only aired MLB Games for a few months, but tonight it could have record viewership, with Aaron Judge One home run away from MLB history. Apple Music will become the title sponsor of the Super Bowl halftime show, taking over from Pepsi, and Apple is in talks with the NFL to take the AAL assets Sunday ticket package from direct TV and a deal that could top two point five billion dollars. Here's how crucial this could be for apple. A recent survey of NFL fans found that forty percent of them definitely will or are likely to subscribe to Sunday ticket went offered by a major streaming provider. Here to discuss is Bloomberg's apple reporter, Mark German, and Bloomberg business of sports reporter Brandon Sapienza. Brandon, I'm gonna Start with you. Big Game Friday night and it matters for a guy called Aaron judge and it matters for Apple TV. Set the stage for us. Why do we care? Well, I mean Aaron Judge Could Tai Roger Marris with the sixty one time run. Obviously that's really big news. Yankee fans have been waiting a long season to see that happen, but they might not get I'll get the chance to do that tonight. So a lot of them are really upset. They've personally attest to that they might not get the chance to do the mock. Give us the specifics. Hey, what is the deal that apple has with Major League Baseball? So for the past few weeks, as you said, or a few months I should say, through the Apple TV APP on all of the supported devices, apple has aired two MLB Games every Friday night. They put the schedules out a few weeks in advance. It just so happens that this agreed upon game featuring the Yankees and Aaron judge tonight. That's the game that everyone in New York wants to see and because of that agreement it won't be aired on the Y S network. That's the local network in New York. So if Brandon wants to watch that, he won't be able to unless he signs up for Apple TV. Now the positive year is that this goes against some speculation I've seen, you don't actually have to pay for it right. Some people thought you had to pay the four day nine per month for Apple TV plus to actually view it. That's not the case. Still, the MLB deal is free. At some point, though, I think they'll charge for it. But for tonight you really just need an apple TV APP or access to the APP in order to watch the game. Jens, I wanted to get the mood music out there across New York. So what did I do? I took to twitter and I did a twitter poll and I asked Yankees Fans, Major League baseball fans, WHO's watching the game tonight on Apple TV plus? That's the results. Now, okay, Pinch your salt here. It's not exactly scientific. Around six votes, but no, forty three point five PC. I guess a lot of people are going to go and see it themselves in person. But if you are a Yankees fan or you're a baseball fan, brandon, it's a complicated season. Yeah, what do you need to do across the season if you live in the state, in New York to Actually Watch a game? So if you live in the city of New York, you're actually for services to get you a Yankee game. So either you need one of to view one of the PEACR Games. Need Peacock, then you need Amazon TV, Amazon prime. They needed a cable network or something that has access to the yes network, which I think is only direct TV stream in the case of if you want to stream if you're unplugged from cable. And then obviously you need apple TV, which I know, as Mark said, it is free, but for a lot of fans it's a lot of services and a lot of money that may need to be laid out and it's it's obviously not ideal in this inflationary environment. Mark, what is Apple's play here? What is their strategy with sports more broadly, because it's not just baseball. So you heard that problem, the brandon outline where you need four different services to catch all your Nikee Games? Right, that's not alone for MLB. Right, I'm an NBA Fan. Sometimes you need lead pass. Sometimes for the Lakers you need spectrum sports net, sometimes you need ESPN. Right. And so apple's ideal world is you throw all that away, right, you subscribe for one price every month and you get every game you want across every different sports league and they're gradually heading there. Right this MLB partnership just the beginning. You mentioned the talks to the NFL for Sunday ticket, just the beginning. The MLS deal. It's a ten year deal. That's a component of it. I think they'll eventually go after the NBA, college, Maybe High School Sports, who knows? They want everything. They want one single monthly price. Build your own all the card system them where you can pay, you know, x amount for M MLB, NBA, NFL. Pay a different price for this. Build your own packages as standalone apple originals, non sports package. They want to own everything right and this has been a big week for them. Those talks are ongoing. You mentioned that deal for about fifty million where they're going to be replacing Pepsi right as a sponsor for the, you know, halftime game right at the Super Bowl. That's a big way to get apple's brand out there, make more sports fans familiar with the apple brand, apple music, apple TV, etcetera. And of course the situation that brandon outline tonight. That's going to get the apple name out there for a lot more people. And obviously this Aeron Joe Situation is perfect marketing for apple and apples are going to give in and let yes, Co stream the game, that chart you see on your screen. So a global audience seems so important, right. Apple's budget six billion for streaming in prime video, fifteen billion brandon. Isn't just inevitable the Apple Amazon streaming giants come to dominate sports television? Absolutely. I mean, when you think about who owns all these products, who owns an apple product? Who owns a subscription to Amazon prime, you're talking about a lot of people, with tens of millions of people, and all of these people are also motivated by more and more quality content, turning to streaming, turning off from cable and just focusing all their attention and their money there. So it is inevitable. Let's talk about apple mark and its efforts around the NFL and halftime show for the Super Bowl. Right. This is not a play for the broadcasting, this is a play for advertising. This is a pure advertising way, pure way to get their brand out there. This is a five year deal. Obviously, anyone who watches the Super Bowl knows that Pepsi has sponsored them for many years now. Apple is going to be the forefront of that and you can just probably imagine that Tim Cook, Eddie Que, their head of services, you know, a lot of their team will probably be there. You'll see them on camera there. They'll see their brand plasted everywhere. They'll make a whole big deal about it. I'm interested to see if they're going to get back in the game of making commercials right for the Super Bowl, something they did many, many years ago, obviously with the original MC but they haven't really done much of that since then. So I think this is a big branding opportunity for apple. And despite all the cash they have on hand right a hundred billion plus. You know, fifty million dollars still fifty million dollars. So I think they see this as a significant way to put their foot down and say hey, we're here too for sports. Uh. And I think Brandon's point about all these other services is also pretty interesting. And what's really cool about Apple TV is they have a feature called Apple TV channels. Right, so, let's say Amazon or another provider, Peacock Brandon mentioned, they get some really cool deal with one of the major sports leagues. Potentially, maybe that could be tapped through in Apple TV. So the Apple TV APP you can access to apple services, apple partnerships, but maybe those from NBC and Amazon and the likes of those as well. Mark, you've got your finger on the Pulic of Apple, not just in the product perspective, but it kind of brewed a strategy. So talk to me about Sunday ticket in NFL. Is Tim Cook and Co really willing to just keep spending that cash because they got cash to burn? They have a lot of cash and they want to use that cash to make even more cash, right and so right now they're making about twenty billion dollars a quarter right on services, about eighty billion dollars per year. Imagine that investment, that two and a half billion dollar investment, what that will do for apple's bottom line. Right. Maybe one day we'll be talking about nine billion or hundred billion dollar annual income from services, with NFL just the beginning of that. That's a big deal. And, as we all know, NFL Sunday games. That's the Holy Grail, not only of the NFL for football, but the holy grail of all of sports. Right even the NBA doesn't want to broadcast their games to go up against Sunday games from the NFL. So I think that would be pretty, pretty big for the company. Hey, how often does it come down to cash on cash, on cash? Boom bugs, malt gum and and Brandon Sapienza. Thanks to you both, and be sure order to catch the lineup tonight at seven pm New York time. It's our new show focused on the sports betting industry. Tonight, former Dallas Cowboys Dez Bryant joins the program coming up, we'll take a look at the resurgence in climate focused investing as companies and governments doubled down on lightening their carbon footprints. Our discussion with climate focus firm voyage a ventures. Next, this is Bloomberg. This Week is climate week in New York, with the summit bringing together international leaders from business, government and civil society to showcase global climate action. So let's wrap the week up with voyage adventures, a new firm that's raised a hundred million dollars for its first fund, backing tech startups working on things like decarbonizing transportation, energy systems and foods and materials production, to own name a few. Let's say all about this with the CO founders and managing partners, Sierra Peterson and Sarah's classic, joining me now. Sarah I'll start with you. Climate Week. A whole week the world is watching to events like this really induced change. Yeah, I mean climate week is, I think, a good illustration of the unparalleled momentum we've seen in this past year in recognizing the opportunity in addressing climate change and climate stabilization through investment and the policy that has shown up in a major way in the United States to do so. So every week it's climate week in some way. Sarah, I think what I find so fascinating, especially in private markets, venture capital, you're putting money in a portfolio of companies. Some of them will make it, some of them won't, and a lot of these ideas they always seem a bit nascent, right. They always seem like things with great promise. How do you decide to where you deploy capital? Yeah, so we invest in companies building product and services that are positioned to decarbonize some aspect of the global economy. And these are the world's biggest markets for talking about energy, food and materials, production, transportation. And what we recognized, and part of the reason that we started voyager now when we did, is that many of these foundational technologies are reaching the point where they are cheaper and better performing than their fossil field incumbents. Sore, of course, seeing this in the area of electric vehicles, where the total cost of ownership of light duty vehicle is less than that of a combustion engine vehicle and the performance is better. And so we look for opportunities in these expanding markets where foundational technologies are positioned to Outcompete, in the near term, in the next few years or even today, their fossil field incumbents. And I think it's important to recognize these technologies will continue to get better over time and the fossil fuel based incumbents will continue to be ever more or less competitive. Sarah, let me as see that question in reverse. Where are you not investing? Where do you not put your money within climate carbon reduction? And why? Yeah, certainly so. We are an early stage venture capital firm. So as a venture capital firm, we seek investments that have a venture scale return profile. There are plenty of opportunities for investing in the overall transition away from an unsustainable and carbon intensive economy around the world. There are infrastructure investments to be made. There are certainly interesting opportunities to invest in the carbon markets themselves. We are investing in early stage technology companies that hold, as I said, an interesting and venture scale return profile. Out of fund one, for example, we look for companies that we believe, through a single investment, can return the entire hundred million dollar fund through that investment. So you both raise around hundred million in April, I believe. I want just take a look on the screen at some of those backing you guys, some of your lps, really interesting names from industry, for example. You know one being Jeff M Ol of GE, Long Time at G, one of these great big American companies, and we talked in the intro about how climate week brings together policymakers business. When you look across corporate America at a General Electric for example, do you think that they are a doing enough, Sarah, but be doing the right things with their investment? Yeah, many companies are recognizing the opportunity in the transition and they're seizing the opportunity. I think certainly not every company is and all companies could be doing more. What it's difficult to recognize is that once technology is hit in flection points where they are better performing and less expensive than the technology paradigm they're replacing, they continue to get better and they can continue to get are at a faster rate, and so we think these transitions will happen linearly. In reality, they actually can happen much, much faster than that, and so timelines and inflection points that feel like they might be twenty years out in decarbonization, in the transition from combustion to clean electricity, might actually be happening in ten years or five years. And corporations that don't prepare for that UH and then, are not ready for what is potentially the most rapid transition of economic activity the world has ever seen, are not only going to be at risk for their business, but they're also going to miss out on a fifty trillion dollar opportunity. Sarah, it's been a really interestingly digging into the actual technologies, the things that the founders are trying to improve. Talk to me about some of your portfolio companies, the areas and the technologies that you're most excited about. Yeah, so we invest in foundational decarbonization, that is, the technologies that are poised to de carbonized big swaws to the global economy. These are mobility, energy itself, food materials production, the built environment. We are backing companies that are poised to, should they succeed in these markets, really address emissions at scale across the global economy, and I put fully reflects that. We invest in software companies, we invest in deep technology companies, we invest in biotechnology companies and all our positioned to compete with the fast field paradigms of prior technology based on price and performance, belong right. Voyager Co founders and managing partners, Sierra Peterson and Sarah's classic. Thank you very much. Now Nicola, founded Trevor Milton, had an odd reaction when shares plummeted on their NASDAC debut. Back in Milton was, quote, hyper focused on the company's stock price, so much so that when the shares fell five on their first trading day of June, he thought something was wrong with the NASDAK. Durors his criminal fraud trial were told CFO can brady testified that he explained to Milton the decline was simply supply and demand, but Milton insisted brady contact the exchange. Brady told jurors that it was a constant battle to get Milton, the company's biggest shareholder, to focus on building long term value rather than obsess over retail investors and stock price fluctuations. And Ford has begun the largest factory project in its one hundred and nineteen year history. The automaker has started construction of its five point six billion dollar electric vehicle manufacturing complex in western Tennessee. It's known as Blue Oval City. By six thousand workers were expected to be building electric pickup trucks and the batteries that power them in a joint venture with South Korea's SK innovation. Now market loads for the year are in sight after this week's sell off. All three major indices dropped this week after the Fed seventy five basis point hike and signaled higher rates will remain. Tech was not spared. Our next guest says there could be some bright spots along with challenges for everyone from startup founders to chief executives. David Crawford is partner at Bain and company as well as its global head of technology. David the week that was what do you make of what's going on in the world? Well, good question, I think. Um, thanks for the question. I think we we see long term. You know, Innovation and growth in the tech sector. That said, we've already seen our clients swallow kind of equity and reduction this year. That's mostly been multiple adjustment. The second half of the year, we think, is actually about sorting out how much demand pulls back. We we believe there are major disruptions from supply chain as well as war and now the recessionary effects of a demand pullback which, as we look into our client base, we think that's actually going to be revealed to be more substantial than people think and surprise the markets more so. Volatility is a US word again. The world is volatile, the markets of volatile, but you see an opportunity to do what you call kickstarting the rebuild. What do you mean by that? What we talk about is that in a downturn there is opportunity and particularly if you can be an incumbent or someone who is strong in your sector, there's a flight to quality. It creates more opportunities for you to grow. It creates more opportunities for you to do m and a, it creates more opportunities to do do deals. But there's a process of managing through the downturn such that you can gain share and gain market position. It's kind of a double edged sword right were, especially when we talk about growth equity, because a lot of these innovators they need cash, they need money to to grow, to expand what they're doing. But if you're an investor, that carries risk in this environment. So how do you pass that? Yeah, great question. We see growth equity as a direct result of the unique innovative conditions in the tech sector today. It turns out that the markets have put down, over the last decade, enormous amounts of cloud computing, pervasive connectivity, GPS infrastructure at center and it's created an environment in which new companies can be built and scaled extremely rapidly. And if you understand that playbook, you can invest behind it with a growth equity formula that is extraordinarily high, high payback Um. So I think that formula has not gone away, those conditions have not gone away. We're going to have to work through these uh, these uh difficult environment, you know, in the next six to twelve months, but after that I think we'll have a return of the same extraordinary innovation conditions. David was showing a lot of red on the screen on a year to date basis and equity markets on a weekly basis. But it's Friday. Let's let's think about the positive, the opportunity, and I enjoyed your latest research right because you're talking about specific areas, the role of web three in rewriting the rules of digital user identity, you're excited about ai in customer success. How do you convince invested that now is the time to deploy capital to those areas? Yeah, I think it's been interesting to watch equity multiple adjustments. The hardest hit by far have been the smaller companies with the extraordinarily high growth rates. There's been a flight to quality and that just makes a number of extraordinarily innovative and important, frankly, assets available at much cheaper prices than it would have been otherwise. So I guess we would say innovation is very much alive. We're looking down the barrel of a massive growth in the metaverse, web three dot o being one piece of that Um, and we just think that this transitional effect creates opportunities for smart players to make good bets. David, I'm going to bring up a chart which I saw in your research which shows the growth of growth equity relative to public markets, equity venture capital, and what we see in terms of buyouts in the market. What is this story that this chart is telling on our screens? Yeah, great question. The basic story there is the extraordinary growth of the growth equity investor trunch, you know, and growth equity is not a new concept, but it's it's meant to be targeted at a life stage that you know, is going from, uh, you know, stability to scale and, as I mentioned before, we just think it reflects the growth here. Has Grown to of total capital deployed. That's extraordinary. It's doubled since the last two years. So we just think it reflects the conditions of innovation that are ever present in tech right now. The pervasive availability of cloud computing, of Um connectivity, of Ai, of technologies, payment systems, you name it, just allows a good concept to be created and scaled extremely rapidly and investors have sort of bad out. They've actually that into a great business. If you're an investor anywhere in the world in the last two years you've done a bit of reading about semiconductors and the global chip industry. Everyone is trying to become an expert on the chip industry. Where do you see the health of the chip industry in terms of supply, bottle Max, but but also the story has turned so quickly to demand. Yeah, the chips story is is a multifaceted one. It's started out two and a half years ago with the auto industry canceling is, its its orders and those orders being reallocated to keep factories full. Um, when the economy recovered more quickly than people thought, there was just no availability because the factories protect themselves by backfilling. Since then it's become, you know, an extraordinary story of global disruption that occurs as, uh, individual players lose their orders, underproduced, overproduced, etcetera, and it shows us that how dependent we really are on hips. And it's not just leading edge chips, it's chips at all Um at all places within in the node progression of the fabrication and that is also, of course, shone a light on the relationship between the United States and China, and I know that your research is touched on that as well. Yeah, there's a whole another layer to this story, which is that, you know, the world has found itself extremely dependent on a small number of companies to produce these some of which, one of which is very important, is Taiwan. Semiconductor in Taiwan and to the extent Um there's a single point of failure in your supply chain. Uh. This chip shortage has really highlighted for folks how how dependent they really are on that single company, and many companies are looking to diverse five. With all that in mind, give me the David Crawford projection for three in the world of tech. Yeah, simple, in any of the back end of three will be about innovation and Growth and and sorting out how to win here. I think the next six to eight months will be working through the disruptions that we're experiencing now, Um, and those include everything from the Geo political environment too, as you describe the supply chain shortages, one of which is the chip shortage, Um, as well as the recessionary effect of demand pulled back. All Right, David Crawford, partner at Bain and company and head of its global technology practice. Thank you. Time for our crypts I report, and today we take a look at what we call oracles so around crypto contribute to Shinali Bashak is here with our guest Shal take it away. Thank you, ed. We're going to talk to Mike K Hill. He's the Pith Data Association director, and we're going to talk about oracles here, because data is hard to combine the traditional financial system. It's hard to combine in crypto because it's such a vast landscape. So when we're talking about Oracles, what do you really mean and what does it mean for the universe of smart contracts that need that external data from the real world services that really provide that gateway Um, to each other? Sure, first out, thanks so much for having me. On block chains, as you mentioned, we've got smart contracts and the smart contracts will execute rules based decision criteria that can move something of value. So it could be bitcoins, it could be ethereum Um, and when they are doing this, there's no third party intermediary that's going to make any judgment calls. So they're dependent upon the inputs and that inputs come from data Um, and so that data is that the quality of that data is paramount, and so oracle networks provide a way to get high quality data. It's very trustworthy, and the way that they do that is by having multiple contributors distribute that data directly on chain and it becomes very robust and resilient. Now how does this really help big institution and high frequency traders really engage with the crypto universe with a lot more rigor? Yeah, so what's really cool about the pith network is it has attracted some of the largest trading firms and exchanges to contribute their data directly onto blockchain. We think about the pith network as being really high quality infrastructure that can power the next generation of decentralized applications empower the growth of web three. So it's really the tooling that large trading firms and exchanges come to expect to make this institutional grade so that they can participate in future. You know, it's interesting because when you think about how it used to work, data is proprietary. Data is something that not a lot of people like to traditionally share. So what do these firms get out of it by starting to share data and starting to amass more data altogether? That's a great question. So there's a reward mechanism within the pith network where the data providers are incentivized to provide that data on chain Um. And what has been very exciting is, in a similar capacity to how AIRBNB has enabled an entire new inventory of places to stay. The Pith Network has opened up and unlocked reserves of data that came from trading firms that never ever distributed it for external use before. Um. Some of the participants include jump trading, Jane Street Susquehanna, and they're contributing their data directly on Shane and this is something they've never once have used externally before. So it's very cool. Mike, you used to work at Morgan Stanley and you know, when you look at this kind of high frequency trading world, all those companies that you said that you work with, like Jane Street Susquehannah, why is it that high frequency trading firms are more likely to engage with this universe then a large firm like Morgan Stanley? You see some of those big houses starting to trade in Crypto, but it's really at the margins. Yeah, I agree. I think that the first movers tend to be ones that have um smaller committees around where they can enter into markets. Um. So these are really the nimble firms, Um, the ones that get in early. They're comfortable with both the cryptography risk as well as potentially some regulatory risks. Um, and then navigating that landscape is never easy, but it's a calculated risk that they have to take. For the banks, I think that they need to get a little bit more comfortable with the caliber and the scale of risks that they're going to get into and I think they're making a lot of progress, as you mentioned Um, and we will expect to see them come in over time. And what would it take, do you think, for decentralized finance to do everything that you would see in the traditional financial system? Yeah, I think it's going to take a lot of development Um. There's some things that crypto does really well, which is like, you know, sending things around the world of value Um, with low friction Um and low fees Um. And then there's some things that in centralized finance it does really well, for instance, privacy. Everything is fully public on on blockchains and that's not necessarily the best thing for um like a trading engine, or for Um to send like your Benmo account and have everything to be public Um. So I think that we're going to see better technology emerge Um and this infrastructure tooling is really designed to allow people to build stuff and build stuff that can compete with the real world of centralized follow ups I'd love for you to talk about your work also with certain blockchains, particularly Salana. Of course we've come off the merge. We're talking a little earlier this week down totally, Yakovenko, you know, what is it? What kind of data do you have? What kind of decisions are you making as this ecosystem evolves to know what's going to be more dominant moving forward? Yeah, so pith started its life about a year ago on the Salanta blockchain and it became very quickly the canonical oracle to be used on chain over the applications or securing their data with that network. Um, and it is now going multi chain and it's really just if you think about these chains being similar to operating systems, you want to have the best possible toolings to attract users to build applications on these operating systems, Um, and so having pith available on chain is a very important component um for these these layer ones to compete with one another. So it goes to all the E v M chains now and will extend to the new ones, some with competitive aspects, to Salona, using different languages as well. I have to admit, Mike, a data oracle sounds a bit like a mythical creature. So what exactly what is the function that you serve in this community? What kind of data are we talking about here? You know what is the ultimate goal? Yeah, it does sound like a mythical creature. The name does come from Greek pathology and pith comes from Pythia, so there are ties in there. But today the fifth data Um Spans the sector of Crypto, US equities, F X, metals Um. So you've got a bit of everything. You can see the price of apple updating on chain every four in the middle seconds and being used by anybody Um. But you can go on on the website and see this information. We expected to have that scale out other categories that people are interested in using them in smart contracts. I'm with you. If you can make mythical creatures to make foreign exchange sound all the more exciting, I am in for that. Mike Cahill, that's the CEO of Pith Data Association. Thank you so much. Ed Back to you. Thanks, Tony Mythical let's talk about space. NASA said earlier today the long awaited launch of its space launch system is still possible next week after a successful fueling test on Wednesday. But bad weather is on the horizon. Meantime, we might also be closer to SPACEX, is starship conducting in orbit or test launch, just not as close as you might think. To wrap the week in space, Bloomberg's Lauren grush joins me on set in New York. Yes, let's start with sls. What is going on? That's a great question, something I'm kind of trying to wrap my head around as well. So yes, NASA is trying for their third launch attempt of the space launch system, the first who had been scrubbed for various technical reasons, and they gave an update today. They're still targeting Tuesday septem however, as you mentioned, a tropical storm or tropical tropical depression is brewing off the coast of South America. The latest forecast shows it heading straight towards Florida. All sorts of emergencies are being declared over there, so it's not looking good weatherwise. NASA says they are they're keeping an eye on it. They're still tracking towards a launch, but they'll make a decision, hopefully by tomorrow morning or early afternoon, if they need to roll the rocket back from its launchpad into the hangar. So Wednesday was kind of key. I think we have some video of it, this fueling test. Yes, what is that? So Um, during their second launch attempt they had a hydrogen leak and they found they needed to replace a component on the rocket, and then what they wanted to do was to test if that that worth that they had done had actually worked, and so what they did on Wednesday was basically simulate what they do on launch day by filling the rocket with propellant and making sure that there weren't any leaks. Unfortunately, there were some leaks that propped up during that test, but they were able to push past them after some troubleshooting and they were able to successfully fuel the rocket just as they would on a launch day. So they said that they met all of their objectives despite those issues, and so they're still they're ready to go. They want to launch this thing, but there seems to be all these different varia questions. Are you ready to go? I've gone to Florida twice now. I'm ready to book my ticket for the third time, but I would prefer not to go in the in the path that there is a serious reason why we're paying attention to this launch, right, which is there a bigger goals ultimately? What are those bigger goals? I think we have a map which shows if and when this mission launches, it's for a reason, right. So sls is part of NASA's plan called Artemis, which is this big, ambitious program to send the first woman, in the first person of color to the moon, and this is just the first step. So what they want to do with Artemis one this mission is show that the S L S, and it's in NASA's Deep Space Ryan crew capsule, can actually work. There won't be any people on board, but they want to send it around the moon to just kind of have this demonstration so that when they do put people on board they're confident that they'll be safe. Lauren, this week Elon Musk has been tweetingcker and one of the things that he tweeted was in response to a question on starship and when starship will do its first orbital test flight. He says November seems highly likely. We will have two boosters and ships ready for orbital flight by then with full stack production. What does that mean? Well, I if you've been following Elon's tweets, which I'm sure you have. He does like to make very aspirational goals for his flights. So you know, I think he said earlier when March it was ready, maybe April. I think back in even he said it would be launching in six months. So every time he gives us a launch date I take it with, you know, a boulder sized grain of salt. However, that said, SPACEX has been been making great progress on starship development. They had recently had a seven engine raptor static fire next the back. Next big goal would be to static fire thirty three of those engines and that's that's a lot of engines at once. So there'll be a lot of flames. They've also been prone to set the Boca Chica area around them on fire sometimes when that happens. So we'll we'll be keeping an eye on that and once that happens, then I think will be realistically getting closer. And to end Friday on a positive note, I understand that there's a meteor headling, headling, hurtling towards earth, but that we're not in danger. Even so, NASA, we're going to try and crash land something into it so it's not hurtling towards earth. It's it's completely fine, completely benign. It's the dark mission. NASA is testing out a method for potentially nudging asteroids out of the way if we ever were to find one coming towards earth in the future. So this is just a test. Nobody needs to worry, no one needs to, you know, pack up and head for the hills, though I don't know if you'd be safe there. Um. No, this is just a test, and what they're doing is they're intentionally sending a spacecraft into an asteroid to nudge it off of its course and then that way, if we were to ever have an asteroid headed our way that we knew about, that could just, you know, make it veer away from Earth safely. This is just a test. Blunt Bergs, Lauren Grush, thank you.