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00:00From the heart of where innovation money and power collide. In Silicon Valley and beyond. This is Bloomberg Technology with Emily Chang. I'm Caroline Hyde in for Emily Chang this is Bloomberg Technology coming up in the next hour. Supply chain pain continues ahead of the shopping season with retailers struggling to keep supply up with demand. How Amazon is sacrificing profit to meet delivery times. Plus Xoom has lost a hundred billion dollars from its peak as a pandemic fueled rally fades. We're gonna be live at the zoo's CFO schoolbag on the video platform is planning to maintain momentum going into 2022 and how the tech behind crypto currencies is being used for real world emergencies. Labs is partnering Deloitte to use the block chain to empower first responders well out in the field battling natural disasters. We'll get to all of that in just a moment. But first let's get to where the markets. Well Manisha show a little bit of green. The Nasdaq 100 outperforming Manus Cranny Gupta is here and it was then volume but it was higher. A little bit of holiday volume already. Markets kind of hitting the snooze button but nevertheless the S & P 500 ending in the green and we had a slew of economic data. But the takeaway here that the consumer at the end of day is still strong that inflation metric that the Fed uses still skyrocketing to the point of worry. And that's really why you're seeing these marginal gains in the S & P 500. But like you said Carolina tech has been outperforming. You see that with the New York thing index just a little bit higher. I threw under the board the Bloomberg dollar index and yield as well because of course we know tech is extremely sensitive to yields. That's a relationship worth watching but so is tech's relationship with the dollar because at the end of the day they are both these global haven. So really keep an eye on that. But as I talk about yield I really want to talk to you about bond volatility in particular because as we start to wait for more signs of this Fed lift off this rate hike lift off bond volatility I think we have a chart here. Bond volatility has actually been extremely high. Equity volatility has been kind of low. But you're starting to see that creep up a little bit. You can see at the very edge of this chart the white line starting to hint up which tells you in the next couple of weeks as we get more signs from the Fed about what's coming next. Equity volatility in tech stocks in particular which is a big part of the index of course is worth watching. Let's get back to the intraday action though and talk about what happened today. I saw the tech was outperforming today. NIKKEI really see the semiconductors in with that trade up zero point nine percent. Chinese eight yards as well. Another big component of that New York thing index up one point two percent. Biotech up marginally as well. But it was crypto. That's been the outperformed lately. That actually was the laggard today. That's your macro story. But all the action really was under the hood. For those details we go to at Ludlow. You mentioned strength in semiconductors I want to get to some of the movers in the day in terms of biggest points movers on the Nasdaq 100 it was to chip makers in particular. I'm keeping my eye on AM D and in video and D that stock trading at a record high. The biggest jump in two weeks up 5 percent in video are also rebounding from two days of losses. Remember we've been talking about and video is having such a significant weighting in terms of technology stocks are in the S & P 500 to the downside. Electronic art still under pressure and a lot of selling on that stock recently battleground 2042. This latest title not doing so well. And this one's for Caroline Hyde. See Autodesk. I want to talk about Autodesk down 15 percent. This isn't a stock that we talk about. This is the 55 billion dollar company that we never talk about. I kind of feel that we should they make software for engineering companies. They make software for builders who are in the early stages of big you know construction projects. Look at that precipitous fall on its earnings. It's basically narrowed its forecast for this fiscal year citing supply chain constraints. I thought to myself hold on. You're in the early stages of planning. But what they're saying the executives is our customers are suffering right in these industries that are suffering because of supply chain crunches. And we are suffering as a result kind of giving some very conservative guidance that finally Caroline's been talking about this all day long. Retailers because we are on the cusp of Black Friday this busy period of November where there's so much retail activity the biggest drops on record for Nordstrom and Gap. They just can't manage the supply chain. They're not able to get inventory. It's a missed opportunity for sales and Amazon pretty much flat. Just want to mention some data very quickly from Adobe. Then in the month of November so far out of stock messages are up two hundred twenty seven percent year on year versus January of 2020. Right. And against pre pandemic levels November 2019 up 261 percent. That is what consumers are facing this week as we go into the Thanksgiving and Black Friday period. And it's really interesting for those that are trying to kind of trade off between brick and mortar and in Amazon's case e-commerce. Exactly. If they are managing to weather that supply chain pain. So smart at Ludlow. We thank you for mentioning of course while they the out of stock messages two billion of them in October alone in the United States three point twenty five percent from October and 2019. That's all according to Adobe Analytics. Jordan Holman breaks down why supply chain disruptions may mean fewer Christmas discounts and perhaps a disappointing Black Friday. Looking to get your little one. A tanker truck this holiday season. Well you're gonna have some trouble. And if you want to give your spouse a personalized ring or pendant you may already be too late. The National Retail Federation sees eight point five to ten point five percent consumer shopping growth from last year pushing forecasts to almost 860 billion dollars. But as shoppers begin spending on gifts many aren't finding what they want online for. They're seeing bare shelves in the stores this year. Supply chain issues are threatening to derail everything. Two billion out of stock messages were sent in October alone. That's up three hundred and twenty five percent from the same month in 2019 according to Adobe Analytics. Who is seeing electronics hit the hardest followed by jewelry apparel home and garden and pet products. After two years of shopping disruption it's safe to say retailers need a win during these crucial months. But it won't come easy. Concerns around Covid shut down factories in Vietnam this fall would slow down production. Containers are piling up at the ports on both the west and east coast of the US. There are too few drivers to shuttle the goods to distribution centers and not enough space in warehouses in all of this could affect the types of gifts that you want to get for your kid your spouse or pet. Retailers especially mom and pop shops say that they've had trouble getting Tonka trucks puzzles teddy bears bikes you name it. And if you usually get a Christmas tree this year both live and artificial trees may be harder to come by. Jewelers are saying better quality larger cut diamonds may be in short supply. Even florists are having a tough time getting everything from tulips to white roses. You may even notice the supply chain bottlenecks when walking into a store. Ever see more denim jeans than cotton shirts. Things like books and dolls set to go out on sale just in time for this holiday season are hitting weeks long. Shipping delays shipping delays that look like this. While retailers race against the clock to stock shelves ahead of the holiday season containers full of goods pile up outside of the ports of Los Angeles and Long Beach in the streets of Wilmington in the outskirts of the twin ports. Officials say between 150 and 200 citations are issued for misplaced containers every week. For the folks who've already started their holiday shopping more than half said that a product they wanted to purchase in a store or online was already out of stock. Plus retailers aren't looking like they're going to offer as many discounts this season. This holiday season isn't the return to normal that the retail industry expected at the start of this year. It has its own set of challenges. The biggest message they're trying to tell people is shop early to make it a merry one. Need to get me a wreath. John in. Meanwhile Amazon on the other hand is prepared to actually sacrifice the bottom line to get products to customers on time but going pretty unconventional unconventional route literally. And I want to bring in Bloomberg News before this is over. Who covers all things Amazon for us and Seattle and all things. Amazon is thinking creatively about how to get your goods to you at the right time. Yeah there's several examples of that and where Amazon just finds an alternative solution. So if the ports of long feature are clogged they'll load up and ship shipping space is scarce they'll find a ship just with some space. We found an example of that where they had a ship that was loaded with world steel heading toward ultimately heading toward Vancouver British Columbia. They loaded it up with trainers and inventory just the deck of the ship. But the whole of the ship was already spoken for. They sailed it into your sleepy port and Everett about 20 miles north of Seattle that usually serves the temporary lumber in the streets. And you know basically used that as a way to get inventory into the country even though it's not ideal. No it's not. You're all of their warehouses in Southern California. It was still a wait of more expensive and trickier way but still a way to get inventory into the holidays. And that's the message they sent is that they're willing to spend whatever it takes to do whatever it takes to not let us down. And that's kind of very in keeping with the Amazon we've known. Time to stand on the public markets for years now. Spencer it's interesting that they saving themselves that I'm up. What about some of the merchants. They're favoring their customers. We'll take inventory from anyone. And so as you've been discussing previously these businesses that are having having trouble. Amazon is very diversified in its supply chain. It has its own products that it sells its own branded products. It has it serves as a as a retailer itself by the inventory wholesale and sell it. But more than half of the products sold on Amazon comes from independent merchants who put their products on that site. And so that depth. It's more than a billion merchants. That depth of inventory coming from so many different places really gives them an advantage. Because the difference on Amazon is rather than looking at an empty store shelves in a store on Amazon. If you're looking for something even if you're not planning precisely what you want or even if it's not from Amazon they may have an alternative source for it or just an alternative product that still suit your needs. So it's where this abundant inventory is really going to come into play. You've got the inventory in now. They need to get it to you. Can you do that. That's gonna be the ultimate test this holiday season and that's where if Amazon breaks down that's where it's going to be. You know they're facing a labor crunch. They've had to offer signing bonuses of up to three thousand dollars. Some warehouse just to get people in the door to pack boxes. Their delivery operation which is made up of small businesses that operate the Amazon delivery vans they have they're all struggling to hire drivers and drivers on the road. So that's where Amazon's ultimate test is going to be. Can I get it to your house. Spencer save him. It's a great read. Go and get everyone. I urge everyone to go and read it on our online or on the terminal. We thank you. Wishing a very happy Thanksgiving. Meanwhile coming up we'll talk to Zoom CFO Katie Schoolbag. The company's latest earnings report as well as the future of Web. That's next. This would be Mac. So we've seen a steady rise in work from home stocks since last November as normal people adopt a hybrid or actually completely remote rhythm. But as things start to settle down we're seeing a slight slowdown in the work from home index which includes companies such as Zoom Dockside Workday and Zuma Force. After a fast rise in the early days the pandemic where millions of people adopted its software to remotely attend classes conduct business meetings to school kids. Well now the company doesn't seem to be keeping up with that index. This as shares slumped on Tuesday after releasing slowing year over year growth in their third quarter earnings report. Let's digest this and talk about future growth. Assume CFO CAC scaled back to unpack all of this. Kelly it's always hard when you see erosion in the share price. I'm sure trying to steady the narrative to your investors right now. What are you telling investors in terms of the growth trajectory which inevitably slows down as people perhaps come back to the office a little bit more. Well first of all just to remind everybody that we reported earnings for Q3 of over a billion dollars which was 35 percent year over year growth and gave outlook for the full year of a mere four billion dollars which is over 50 percent year over year growth. So we're really proud of everything. We are accomplished and we are excited about the future especially about the future of hybrid work. Your work is really transitioning. It's no longer a lease. It's a space where people get their work done. And Zoom is really at the forefront of bringing teams together and keeping them connected and efficient. And you're really making this transition from being a killer meetings ARF to of communications platform that is comprised of not only our meetings your future that everybody knows and loves but also Zune phone which is our cloud the extension zoom rooms which is a conference room solution which is really important and a key part of the strategy. When you think forward the Hywood hybrid where and then of course we have products like Zoom Events which we just launched 90 days ago. As we look forward and consider that events are also going to be hybrid I'm interested in how you continue to build an ongoing conversation with your investor base because to a large extent perhaps they got too overenthusiastic about where future growth could you just spelt out. I mean you beat in many ways the third quarter earnings expectations. You're talking about this growth that is to 30 percent or 50 percent. However did just this did investors just expect too much or was it also the fact that some of the money that you wanted. The inorganic growth couldn't come off for this time round. But now you've got your own organic growth. You know I think that we experienced growth last year that was completely unprecedented and had never been seen before. And the way that we talk about it internally to our teams and also to our investors is you know we really can't control the stock price. What we can control is our execution. And we focus on delivering happiness to our customers and our employees every single day. We do that by innovating and creating the most reliable and intuitive products that support our customers leave. And that's the best that we can do. Every single told us a little bit about contact center as a service. The 5 9 deal that wasn't meant to be there was hope setting from our own internal analysts and some analysts on the call that you will still pursue that as an avenue of growth and interested as to whether that is a merger story or whether that will be something that you look to enhance and build on internally and how you execute. So you know we were certainly excited about the potential of the 5 9 acquisition and think really highly of that team and they remain a very important partner for us. However Video Engagement Center is a product that we actually announced at ISE in Tokyo in November and we expect it to be generally available in the first half of next year. And we're looking forward as a way to bring a really fully natively integrated product to our customer base and think that it absolutely will be a core part of our platform moving forwards. I'm interested as you look towards offering looking at conferences looking at new and different ways and continue to spell growth. What is it that most excites you going into 2022. What do you think is going to outperform what people are currently factoring in. I think Zoom Events is going to be a really key important conferences as you say. As you know we're all excited to be back together in person. However companies have seen just as tremendous efficiency and reach they've gained by having virtual events. And so zoom events is going to be able to bring those two together and support them. That's really exciting. And then also I'm just going to circle back to zoom rooms. The conference room strategy in terms of how companies are going to be able to bring their teams back together in an inclusive way. The competition is going to be front and center to that. So we have features like Smart Gallery which recreate this experience recency everybody's space on the screen even when there are many people in a room together and things like companion mode which allow you to interact with the meeting with things like chat and forming. So recreating the benefits that we've had all working remotely when we go back to a hybrid experience zoom CFO of stuck about. I wish we had more time. Thank you for spending some of us with you. Happy holidays. Meanwhile coming up Elisabeth Holmes taking the stand. We'll talk about the latest in Theron as trial to learn more about the four missing in her own words. That's next. Has. The trial of Elizabeth Holmes and continues and now featuring Holmes herself. The founder of the failed blood testing startup Theranos once hailed as the next Steve Jobs is accused of multiple counts of conspiracy and fraud and faces up to 20 years in jail. And as we are now finally hearing from the former CEO herself. Let's bring him to Max own Joe Rosenblatt who brings us up to speed with it all. And Joe I mean you've been in the courtroom since the trial very much started. This is almost coming to a climax to a certain extent. How interesting was it hearing her you know take the stand in her own defense. Well this is the big question whether or not she was going to take the stand and when she when her attorney called her. It was a big surprise. It came late on a Friday afternoon and she only spoke for an hour and nobody was ready for it. So it was a big deal. It was a big deal. Very exciting for everybody especially everyone who's been spending you know two and a half months in that courtroom waiting to see if she would do that. How did she present herself. Of course this ends up becoming somewhat of a blame game between her and Sunny Belloni. Of course many realize and they had an intimate relationship as well as a business relationship. But what turned you to take. She comes across as very relaxed and she started off nervous when she took off her mouth. She looks nervous but she quickly settled in. Gone is the black kind of turtleneck and kind of Steve Jobs costume that people like to make fun of. She's wearing conservative colors with a blazer and she comes across as a chief executive not a flashy Silicon Valley leader. In this case almost more lawyerly just very calm calmly answering questions leading questions often by her lawyer. And she's presenting herself to the jury into the world as somebody who is in charge who is flying very high and not aware of all the details that might have led to the charges that she faces. Just not aware of all the details that led to the criminal charges that she's fighting now. OK. So sort of almost claiming naivete or too much busyness. We need to have a grapple on on the finer details that end up becoming so important. The devil will be in the detail the detail that she'd perhaps didn't grasp. And that will be in also exposed in the cross-examination I imagine. Well that's right. In fact while I say that she's kind of not not aware of the details that's mostly true. She did it at one point. Admit to a problem. I mean she can't just on her testimony just ignore the charges. She does have to address them. And at one point she did admit that she did something wrong and that she wishes she had done it differently which is to kind of lift the logos of pharmaceutical companies on two reports that she used to get you know that she said were endorsements of our technology in order to get investments. So she's she's walking a fine line. But as you point out the real test here is the cross-examination. That's going to be the real test for her. What she's doing right now is something she's familiar with. She's pitching her company as I said addressing some of the charges. The real test for her will be on the cross-examination which which is the moment that we're all really waiting for. You alluded to it earlier. It's not clear yet how much she's going to blame her former boyfriend. And if Theron knows former president Sunny Ball wanting of course this is something of deep interest to Silicon Valley. But how global does this go. You know I'll tell you it goes very it goes across the globe or at least certainly to Europe and beyond because first you have reporters from really papers across Europe who are interested in it. I think it speaks to the reason it's so interesting is this because you know a trial is not a debate. It's a narrative. It's theater. And the question here is how far how how far can you lie in order to in order to get what you want. And I think that's just a universal and global question that people want to know the answer to in this in this scenario and in this case. Well thank you for bringing us some of that theater. Joe Rosenblatt we thank him. An important cross-examination coming up Monday Tuesday. Meanwhile coming up we use blood chain to help fight natural disasters and improve first responder coordination. We're gonna be talking to Avon adds President John Liu on how his company is partnering with Deloitte. He's the crypto tech to assist local state federal spending. This is Bloomberg Technology and Caroline Hyde. Let's get back to the financial markets. Bloomberg said Ludlow keeping an eye on all things crypto today at. Yeah I mean crypto currencies broadly have been under selling pressure for a few days right. It's been a lot of chatter out there about about growing regulatory risk is a fantastic story on the Bloomberg about you know chartists basically looking to the technicals to try and find direction. You can see where softer across the board as we spill into Thursday session bitcoin lower hovering at 57000. I wanted to zero in on Z cash though I've not really tracked this token in particular but it had an astonishing day Wednesday the best performing cryptocurrency those that Bloomberg tracks and look at its performance year to date. It's kind of got under the radar. We don't talk about it as much with a sort of modest two hundred and sixty dollars per token value. We can see it has performed well to date not quite at the highs that it was at in May. And it's interesting because it's very similar to Bitcoin right. Has a limited supply 21 million tokens. It's got it's basically designed with privacy in mind. But there is news on November 19th that the developers is going to move from a cryptocurrency to a proof of state rather than proof of work. You know I'll give myself some homework. I don't really know the full extent of what that means. I'll go away and find out. There's a lot of chatter out there about this kind of being supportive of this particular coin. I also really want to briefly touch on Coinbase. There's always so many headlines about Coinbase right. All kinds of stuff you see are actually softer by one and a half percent. On Wednesday there were some emanating news. There was news that kind of key Democrats are taking interest in Coinbase. They're asking difficult questions writing letters to executive. Here's what I'm looking at at de DAX or Adidas to some people tweeting saying it's originals brand Adidas Originals has partnered with Coinbase. There's a tweet but they also say probably nothing. And Coinbase replies handshake emoji. So Bloomberg News has asked each of these respective companies to comment and explain what they're talking about. They haven't replied but I'm sure this is something we'll find out more about. This is where we've got two in the world of crypto currencies and traditional business where they added. So let's face it it is definitely. Yeah. Well of course Nike's been looking into all things NAFTA as well. At Ludlow we thank you so much. Meanwhile Kathy word is chimed in and says China is not an investable investment. Founder and CEO exit investment positions in Chinese stocks earlier this year but says she sees a bit of an opening and she's waiting till the valuation dust settles. Spoken. I believe that intelligence webinar will bring back analyst Rebecca. One of the reasons we built up our position in China in 2020 was because we saw China's response to the to the coronavirus crisis was much more responsible from a policy point of view both fiscal policy and monetary policy than many other countries around the world. And we thought OK maybe China's going to become the new Germany or Switzerland known for its monetary discipline and fiscal discipline. But what happened in November of that year was somewhat startling. The episode with Jack Ma and watching how he and many other executives who had created incredibly rapidly growing and exciting companies they basically were told. And maybe there was some reason for it that you know you're you're not welcome there anymore. You go off and do some charitable work or whatever whatever the message was. And so that's what they're doing. We began we became concerned about that. While that kind of rhetoric and activity is taking place. So you're right we pulled away very early out entirely out of our flagship not out of all of our specialized portfolios because in our autonomous technology for example JD Logistics Jody Lockhart a dot.com you know they have low margins very friendly from a capitalistic point of view. And they're helping to push new goods and services into Tier 3 and Tier 4 cities which is great. But there was so much uncertainty created by one regulatory crackdown after another and after we didn't know where it was going to stop. Now we're seeing a little bit of an opening up. Even with the online education we see OK well you can't tutor children after school but you can tutor professionals. And so now there's some a little bit more give there that we think the valuation of the Chinese market has been hurt significantly by this. And that the way the Chinese market will have to grow and stocks will have to grow is if the underlying companies themselves grow back. Intelligence analysts for Pakistan. Speaking with IBEX Kathy word around all things about China. And I remember Cathy what it was a big supporter of prop chain technology of sudden exposure to crypto and routine was developed for use in small decentralized currencies is not just though crypto that benefits or indeed speculation that benefits overlap has partnered with Deloitte to use open source block chain technology to build software that will empower first responders stay connected streamline response to natural resources and emergency situations. I want to bring in the president of OVERLAPS. John Wu is our weekly crypto current segment. And I mean for once here John we're able to really talk about the practical use case of the underlying technology that is the block chain because in many ways it's become our favorite thing to talk about in terms of speculative assets. But we've all waiting for ADAP to work or indeed some sort of practical use case. And you've got one. Caroline thank you for having me. Good to see you again. And yes this is a big moment. The use cases you have seen up to now primarily have been crypto native use cases whether it's decentralized finance or mean coins as we talked about earlier. But this is one of the first times where a Fortune 500 type company or a big for consulting firm has decided to build a solution close as you go solution this case for their and customers in this case government agencies. This is a very big deal because the lawyer has estimated that they can save the government 50 to 80 percent of the all in costs. And what it means for the actual end user is that poor victims in a disaster zone are able to get their grants literally days or maybe weeks as opposed to currently where they get it months and sometimes half a year. This is a huge deal. And if Deloitte has trust in a block chain like Avalanche for security and have better workflow automation data management and collaboration in the thousands of parties that's required here that is basically the beginning of a big trend. And utility and adoption is really happening now on public watch. It's in many ways the way in which you sort of raise the profile of avalanche fees be the likes of you end up chain and the like is is smart contracts enabled application but not much faster that much low cost. It's interesting. You also you know raise the focus of eco friendly. And I want to understand how you present yourself as eco friendly at the moment. Generally when people think block change our energy consumption consuming giants it's relating to proof of work. And I think Ed earlier talked about proof of work vs. profit state. Those are usually related to right now Bitcoin and in theory. Most of the new block chain companies are proof a state that's more software based less hardware and in audio labs or avalanche the watch chains case. Basically we had an outside consultant do work and the energy that is used up is no different from 12 U.S. households a year. So is minimal. Relatively speaking. And on top of that of Olaf's has bought credits in the end in a market in order to offset even a little bit of energy that we end up leading in terms of carbon footprint. Interesting. Let's talk about your token. Is a vox how you say it. Sure. It's been doing very well. And of course just Deloitte deal helps it first shop to sort of record prices. Does that matter to you. How much does it is that important in terms of bringing more people into the ecosystem wanting to contribute. Wanting to be part of it and ensure that it continues to grow. That is that is everything. It's about adoption. It's about utility. And I think Ed was talking about an earlier segment where the entire space is sold off because of fear of regulation. But the bigger story is not just the sell off in the entire asset class. If you look underneath the hood there has been more dispersion in the last few months than ever before in these individual tokens. The tokens and the companies in the projects are actually showing real utility usage either through individual adoption or in the case of enterprises like where we're talking about with the Lloyd transactions on the chain. Those are the ones that are actually doing better even with a down market. Those companies or those projects have actually had increasing value in their tokens. So I am fortunate enough to sit in a seat where I talk to entrepreneurs developers investors and users. I get a first line view a firsthand view to where the usage is coming from. And I see the correlation between usage and prices in these coins. Let's just go a long time and wherever lab results go avalanche in particular. You know it's all about speed velocity to finalize transactions. You're looking at D fi now. You want to look at sort of the old school. Well to finance longer term paint the picture of of what labs does or is in five years time. Well in five years time overlaps who's the team behind Avalanche. It's going to be one of the big players in this space. It is the probably the fastest. I think actually it is the fastest. No doubt based on finality watching out there. And in terms of growth on the chain it's the fastest in terms of usage number of wallets as well as transactions as well as the value on the chain where we will be in five years is ushering this movement from just crypto needed usage to more Deloitte like situations where traditional enterprises are now going to use public block change because it's better for collaborating better for instantaneous transfer of assets better for information sharing and save companies even more money. This is like software eating the world to the next level. John a president we thank you for your time wishing you a happy holiday. Meanwhile coming up you're about to enter the biggest shopping season of the year. Take your holidays. We'll talk about what to expect with my next guest who just became one of the country's richest self-made women. Thanks to her work in the world of retail and e-commerce bring. Now parents are busy. I promise. I understand that and we still have a responsibility to make sure that the default experience is as safe as possible. But we think that empowering parents is an important part of the solution. You're gonna be hearing us talk a lot more about not only parental controls but safety for young people online. We're gonna be talking about these issues with Congress relatively soon. Head of Instagram they're speaking about his upcoming appearance before Congress at a Missouri has agreed to testify before a Senate panel early next month. It's part of a series of hearings into the effects of social media on children matter announced in September. It would pause plans to create Instagram for kids following a series of reports from The Wall Street Journal outlining the app's impact on young users. We've been talking a lot about well e-commerce retail ahead of the busy shopping period and also the trends of influences within that. Let's get insight from someone who is in knowing a thing or two or three about shopping trends. She's just received a 300 million dollar investment from Softbank. The vision from that entire company LTE K is a shopping app that allows creators influencers to let users essentially shop for their post status. Investment now values her company which she started at just 23 at about 2 billion dollars making her one of the wealthiest self-made women. Joining us now is AM Events Box co-founder of Alta. Hey congratulations. You and Baxter coming forward and building this business and educating people on the power of influences on blogging. I mean first and foremost did you expect to get here. I'm so thrilled that we did. We've always been the advocate of the creator and I'm a creator myself. And I know growing up I just wanted to build and make money online as a shopping blogger. And the fact that we've been able to do that for me and my friends and for hundreds of thousands of women worldwide is a really incredible moment and a you know an opportunity truly of a lifetime and hopefully of a generation used to be known as rewards style like to know that's where the LTTE comes from. Largest global influencer marketing platform. What exactly does that mean. No. Exactly what we pioneered a new industry. We started really working on this concept back in 2010. It started as a B2B platform. So we helped creators by providing them with a business enablement platform to monetize their fashion blogs. And then we expanded to offer a brand platform as well to help them connect with creators who could help them to sell more things to more people. And then in 2017 we launched the Like to Know It shopping app. And that was our first really platform for consumers to be able to go shopping from creators or creator guided shopping. And then we just this summer we moved to just go by our common name or acronym LTA. And so as we're just hearing from the answer Instagram had that on Instagram has been trying to make a lot more shopping experiences within its app the same as take stock. How does that work alongside your business. Or is it kind of by lazy Asian in some way. What does all T.K. bring to the table that. So while this industry has been pioneered over the last 10 years it's actually quite robust. And so when you think of the social media platforms they're really part of the larger ecosystem and they're a really important part of that of that ecosystem. And so they're a complement to a creators business in that they give them new formats and new ways to attract customers followers shoppers. And so with each meal over the last ten years we've seen a new platform usually about every two years. So when we started that was with blogs and Facebook and Twitter and then of course expanded into Instagram and then snap and now ticked up club clubhouse. You know the LTA shops. And so we continue to see these new platforms. They tend to attract different generations of creators and different types of creators. And so they're really propellant in this industry because obviously you need a way to connect with people. And then some of those people want to go shopping. And when they do our creators bring them back to the LTA store fronts. And that's where the business happens. OK. Interesting. So if I was on an app social media app and I click through and I was watching but it wasn't LTE KS I would somehow be navigated back to yours when I followed through the purchasing process. You could. So we empower really shopping everywhere online for our creators wherever they're creating content. And so we think of it as you know on platform and off platform transactions. And so a creator can use social media platforms in whatever way they're engineered so they can decide to link directly to a retailer site making they can look back to their LTA creator shop. And that shop hosted a number of links and then their entire shopping experience. But really anywhere that you're engaging with creators they can actually bring shopping to you and make that turnkey and efficient. Of course your costs about 100 countries. You've got a presence in the U.K. Brazil France Germany Australia China South Korea. I mean what a bird's eye perspective. I know as someone originally British that that very forward in terms of online experiences and online shopping. How well do we compare. How does the U.S. compare to the likes of South Korea where you're really seeing significant growth. Well you know crater is a worldwide trend. We just did a study where we found that even just domestically in the U.S. about two thirds of people were inspired by their purchases by seeing creators talk about how feature those products online. And you're seeing that on a global level certainly. We've seen that across Asia across Europe across Australia. And really it comes down to the way that we as society are engaging with people today. Ultimately we're spending hours and hours on our phone every day for an aggregated content channels. Those channels are filled with content that our clients create. And so what's interesting about this industry is you've actually chosen to follow the people that you're seeing in your feed and you might identify with them. For example I'm a creator myself. My followers might identify with me because of where I live or that I am a professional or that I'm a mother or that I have pale skin or red hair or there's something about me that they identify with and I'm able to help them guide their purchases. And so we're seeing that all around the world. And cross category cross vertical cross platform. We've got about a minute left or so. I'd love it. How do you ensure within that authenticity safety as well for the people that follow you and the way in which you sort of absorb social media and want it to only be a positive thing. Very intentionally so the LTA platform is a place where our creators come to create their digital storefronts and that's really really focused experience. That's 100 percent dedicated to creator guided shopping. This is where our creators. They hold no inventory. They ship no boxes. They do no customer care. But they are making everything about their lives shopping mall whether it's the wagon that they use to take their kids around the neighborhood or the dress they wore on TV today or the makeup that they like to use in the night cream. Every single thing that they're consuming they're making shopping. And we've engineer that platform in a way where it's not a social platform. It's a shopping platform. And so when you show up there the only thing that you can do is shop. And we've seen now that about 8 million people every month are coming into shop. And actually in the last 12 months they've purchased three billion dollars worth of products from our creators. And one of the most interesting things that I've seen lately is actually the rise of direct to consumer. You know about 20 percent about 3 billion went straight to direct to consumer brands over the last twelve months which is really exciting for us as we think about that different type of creator. Amber great to have some time with you. Thank you for spending that ahead of the holidays. I'm events books co-founder of Outtake. Coming up. Fate is still waiting for the first must see film of the pandemic era. We'll break down the numbers. And what's Hollywood hoping you'll go and watch this holiday season. That's next. Visit. Let's talk a little bit about Hollywood now and its big holiday push as people slowly return to the theaters. Let's head to L.A. where I'm joined by Bloomberg's Brian House with more what we can expect to see not only on the big screen but streaming at home as well. So if I was going to go out what am I watching in the big screen right now. Well today and tomorrow you can watch Disney's Incognito a family animated film house a good comes out also tomorrow. And returning champions Ghostbusters after life and internals came out early November. And it's still in theaters now. Always good to talk about how school she went. I think the whole film is based on a book written by one of our own journalists. So desperate to go and see that in terms of streaming. I mean I'm seeing and hearing so much buzz surrounding Will Smith and King Richard. How is that going in terms because they've got a dual sort of release right. It does have dual release. It's really well reviewed by critics. It's in theaters as you said. It's also on HBO Max. And we've seen so far this year the films that had the simultaneous release tend to see muted box offices did OK this weekend but it was nowhere near the debut of Ghostbusters which had only Iran in cinemas. I see. And there is the new GQ. Is it sexiest man in 2021. I don't know. I know these things. Meanwhile talk to us about some of the documentaries I've been recently trying to look at all the best documentaries on Netflix. I keep on finding various left lists of them. There's gonna be a couple more right to be consuming. There are. Tomorrow is the third tomorrow. Thursday is the debut of the New York Sucking Battery. It's three episodes over three nights. That's been years in the making. Peter Jackson and the celebrated director is behind it. And it gives viewers a chance to sort of revisit the last few days of the Beatles. The idea has been that there things were fraught between them toward the end. Apparently this documentary shows that things may have been a little lighter. They've been more perhaps friendliness and laughter than we thought from the original documentary that came out after they broke up. So what are you gonna be watching. Brown I'll be watching Disney. Disney plus version of the Beatles tomorrow night. OK. I'll try and tune into it too if I can put the kids to bed on time. Brian CAC great to have some time with you. Thank you for leading us all up to well a busy time of consuming whether you're watching the football weather or dining out and food whether you're watching some of these new lineups as it comes to the world of streaming and the theaters. Meanwhile do you remember Bloomberg Technology will be taking a couple of days off. Go celebrate. Enjoy your Thanksgiving here in the United States. Do make sure you tune in on Monday when we'll be bringing you a special extra episode VIX studio at one point with Alphabet C. So. You do not want to miss it. Meanwhile from New York wishing you some very happy turkey feasting and indeed a bit of a relax outside of the markets and I suppose to trading crypto which never sleeps. This is Caroline Hyde York.

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