Tech and Crypto Market Rout and Twitter Cuts Costs

forces in the global economy. Plus two top executives are out at Twitter as the company looks to cut costs and freeze hires ahead of Elon Musk's takeover. This as Musk is looking for new funding as he cuts his Tesla margin loan. And we will be here from some top CEOs today. Ryan Chesky joins us to talk about Airbnb is quote the biggest change in a decade, and

how we thinks travelers will be hit by inflation. And we'll hear from Arms CEO as the chip company gets ready for an I p O. All of that in a moment, But first I want to continue this conversation now talk about Apple in particular falling again behind Saudi Aramco as the world's most valuable company. Pierre Farragou joining us now who heads up the Global Tech Infrastructure team at New Street Research. So, Pierre, is this a changing of the guard here or is this a momentary blip?

Not much is happening if you if you take a step back and look at Apple in the perspective of the world. You know, I look at on the daily basis there as as Ed mentioned, it down like that twenty percent from the high, seventeen percent from there average value of the last eighteen months. Look at Tesla down fifty nine percent, Amazon down thirty Google down thirty percent. So Apple, on the alative is exactually doing doing quite all right? Um uh. And there are a lot of

reasons for that. You know, they've done very well. They've grown through the last five years earnings twenty more than uh. And they've done very well in them uh in the recent context, through the pandemic, through like inflationary pressure, they've

had actually a very strong demand. UM. And then when UM investors look at Apple today in this massive set of that that's actually more you know, of a quality name, like a safe heaven for them, UM, because they tend to to consider that Apple still has like a pretty nice outlook that revenue growth could continue. You have new products, opportunities in are in UM in autos. So so like the longer term I would look for Apples still looks really attractive to investors, and that's the reason why I

think they stuff didn't do that bad. So there's a kind put in an Apple's fundamentals. What about the broader tech sector. I mean, Saudi Aramco has lived above all of them, and if you look at the top six companies by market cap, Apple, Microsoft, Alphabet, Amazon, all behind an oil company. Yeah. So yeah, it's a good question.

That's what I've been working on interest studays. You know, what, what are the opportunities like names to buy in this in this like broad tech tex set of UM And the way I'd like to think about it is what prey triggers the set of initially is inflation and the concern of interest rates going up, because when, of course, when you look at the very high growth company, if interests go up, it is a very negative effect on the evaluation. Now here's the way I'm thinking about about it.

The million a lot of these companies are actually fairly inflation proof. So if you get an Apple, Microsoft, an Amazon. There you to pass on costs is actually not too bad. So in an fashionary environment, they should actually grow faster because they'll be able to increase their prices with with inflation. And so what I like doing are overreacting then yes, I I think that the investors reaction is creating opportunities.

And you need to look at these companies who have good pricing power, who have very strong market position, and who have been battered down in recent weeks and likely even recent months, in the last six months, and you can find very I think, very interesting opportunities like the three or all that UM popped to my eyes to the Artesla of course, the stocky string and forty five times earnings. It's down from a hundred and forty times six months ago, and um it's still up to grow

like earnings forty two fifty a year. Another one is c SMC is the ship manufacturer, down thirty straight on fifteen times earning, and it's it has a better gross potential in my view, uh than Apple. And then the other one interesting worth mentioning is actually Nvidia, down almost sev from the peak. And and here again a company that has a lot of pricing power, very strong leadership in their market. Everybody needs their cheap and they steket you do very well in in the next few years.

So so I see opportunities um in that set of even in the midst of pare even in the midst of a supply chain shortage and a lockdown in China, I mean in video, I mean obviously Apple and Video is also exposed to that. Yeah, So yeah, it's a good point. Like the next few the next few months or even you know, the next couple of quarters could be slightly challenging for for these players. But I don't think you you have any like you know, incremental negative

negative news flow coming through on that front. So we are really in the deep of the supply constraints and supply is now coming back to take time to get supply back, but it is it is already on the way up. And I think the situation in China, as much as it is like a dramatic disruption for a lot of these businesses, it's actually were understood learning Like Apple talked about it from the Earning School not so long ago, and investors are kind of putting their heads

around around that situation. So I tend to overlook that and think about, you know, what are like the great compounding stories, like names that have this very high creaty growth outlook that has been like taken let us suffered so much in this pullback, and that's where I see the opportunities. But of course you have to look through the next couple of quarters. Maybe. Well, thanks for helping us try to make sense of it all here, fair, I was going to have your new Street research. Thank you.

I mean time to is making some changes at it as it awaits Elon Musk's forty four billion dollar takeover, including cutting some big costs. Bloom Berk's Kurt Wagner covers Twitter for US and joins US now, so Kurt, two big executives leaving. Is this all because of Elon Musk? Or is this because of Twitter's own business problems. That's sort of the question that I'm trying to get to

the answer to. As well. We have a new CEO, of course, Paraguagor Wall, who took over last November, and it's always natural for a new CEO to sort of want to leave their imprints on the new company, makes some big changes, get their own kind of executive team in there. Of course, we're in this unique situation right now with Twitter where everyone's kind of in a limbo right there, waiting for Elon Musk to take over, So it was sort of interesting timing for him to make

two big moves right now. Although I'm told that this has sort of been in the works for a couple of weeks, so it's unclear exactly whether this was, you know, a plan of Elon Musk's, or something that Parragu wanted to do, sort of with Elon's blessing. I to get the sense it's maybe the latter, So let's talk about who is leaving. In the reaction, there were some not happy tweets, as one might expect when people get fired

from Twitter. Well, these are two long time product executives, Cavon Baked Poor, who has been running product at Twitter for years now, and Bruce Falk, who has been running revenue product at the company. So two people who have been there for a long time and who a lot of people did really like. And when you are in a situation like this right where employees are already wondering like what comes next? What is my job going to

be secure? When Ellen takes over. Is the team I'm working on going to be around when Ellen takes over. And then you see two people who a lot of people like and who have been there such a long time kind of get booted unexpectedly. I think that creates a lot of, you know, concern from employees. And so that's sort of what I've been hearing today, a lot of people scratching their head wondering what does this mean exactly,

and then what happens next for the rest of us. Meantime, Mosk is still trying to get financing, scrapping part of his Tesla margin loan. Are these two things related. I think they're related in the sense that everything that Ellen does kind of either makes the deal seem more or less likely. And I think the fact that he's perhaps you know, going to get rid of this margin loan because he's able to secure a little bit more equity financing, I think that just makes the deal more likely to

go through. Right. And so if you're sitting there as the CEO of Twitter, you kind of have to prepare for two scenarios, the one in which maybe the deal doesn't happen and suddenly you're still in charge what have you been doing over these last six months to to make that happen? And then the other where Ellen comes in, and then you're wondering, you know, if you're progu am, I still going to have a job under this new guy.

So I think he's probably trying to navigate that. And I think Ellen getting closer and closer to getting the deal funded um probably dictates, you know, the timing of some of these things. Interesting. Alright, Well, more twists and turns to come. I'm sure bloom works. Kurt Wagner. Thanks, I'm not gonna give your timing, Emily, you know that.

Do I want the company to become a public company at some point, of course, but I really want to make sure that the company that we do take public is a company that's reflective of this uh new Bold Elevision Instagart CEO Fiji Cima their last month when I asked her on studio at one point, oh, when the company might go public? Well, Piers, now is the time

Bloomberg has learned. The company has filed confidentially paperwork to start the process with the sec The ten year old grocery delivery up Start was once one of the most highly valued of the gig economy companies and grew exponentially through the pandemic, but now we'll navigate a very volatile market. Instacart slashed its private market valuation by almost in March,

as orders have slipped in a post pandemic world. Well it was built as Airbnb's biggest change in a decade, the company rolling out a number of new features, including categories like Castles and Amazing Pools and homes that make you go OMG, as well as split stays and air cover, which addresses one of the company's biggest issues, consumer protections. I spoke to Airbnb CEO and co founder Brian chess Ca about all the changes, along with concerns about rising prices,

inflation and how that will affect their customers. Take a listen. Well, first of all, the reason that the price per night went up was mostly because people are booking more expensive airbnbs. So before the pandemic, a lot of people are traveling by themselves or one person. They were booking one, two bedroom homes. Now they're booking much bigger homes to travel with families and groups. And there's been a mixed shift from Asia to North American Europe, and these are higher

price per knights. That's the primary contribution for the increase of price. You are correct, though, a lot of people aren't going to be able to travel and be able to afford to travel. But another thing. Airbnb was started during the Great Recession in two thousand eight, and people used Airbnb because it wasn't a more affordable way to travel. After two years of people not being able to leave their home, many people, I think they want to get out and this is going to be a travel rebound

unlike anything we've ever seen before. Still, even though you're projecting this travel rebound, you've got Airbnb shares down to new lows. And I'm so curious how you're watching this broader market turmoil. What's your take on this? I'm not watching the broader market turmoil, and I would hope shareholders know that I'm obsessed over every single day. Are the inputs to the stock price? Not the stock price. I

think that's the very best thing for shareholders. So my job is to make sure we have the best service, we have enough host they're prepared for the great travel season. That's how I'm gonna worry about. We're gonna play a long game, and I think the long term shareholders will really benefit from that. I wonder how this impacts retention and recruiting though. Are actually seeing a lot of companies that really uh, you know, Sword in the pandemic, struggling

coin Base, robin Hood as well. Do you think this could impact hiring at all or the mood in Silicon Valley. I mean, we're actually completely overwhelmed with hiring. We're completely overwhelmed. Two weeks ago we announced that Airbing employees can live and work anywhere in the world, and if you move wherever you want in the country, we're not gonna lower your pay. Since we made that announcement, more than one

million people visit our jobs and careers page. We only have six thousand people at the company, so um, I do think that there might be some broader kind of considerations, But Airbnb, we have quite a lot of interest, and I don't think that will change. So Twitter just announced a hiring freeze and cutting costs, potentially rescinding some offers for a different reason. And I wonder, with this, on top of other companies pausing hiring, if this could be

a moment of opportunity for you. Do you see this as a chance to attract be a magnet for new talent. I mean a lot of people are reaching out to us from other big tech companies, maybe because a lot of tech companies are asking people to go back to the office three days a week, or maybe because they're not hiring as many. But make no mistake, Airbnb is stepping on the gas this summer. How are you stepping on the gas in China? We're seeing ongoing COVID lockdowns there.

I know it's been a priority for you in years past. What trends are you seeing in a pack and when do you expect them to recover? You know, our China business has primarily been people in China leaving China obviously crossing a border, so it's cross border travel going to other countries. Japan was a really popular corridor, South Korea, They're going to like Europe, They're going to other places.

Because of the situation of China in COVID, there's not a huge amount of outbound business right now, and so our business in China is not super robust and it's going to be probably a while. It's really gonna track with the health crisis. Brian Chesky, Airbnb CEO and co founder. You can catch our full interview at Bloomberg dot com. Coming up, SO no CEO Patrick Spence joins us fresh off the company's latest earnings results. Will also talk about why so Nos is being compared to Amazon and Apple.

He's next, This is Bloomberg. The same day that Sons released its second quarter result of the company also announced a number of new products, including a voice activated assistant called Sons Voice Control. This is the company's first step into the world of digital assistance, which is largely dominated by Amazon's Alexa and Apple's Series. Joining me now, so no CEO Patrick spent So, Patrick, how is yours different? Ours is very different in the fact that all the

processing for it is done locally. Um and it's very so it's very private, very privacy focus, something we know a lot of our customers have been looking for. And the other thing is we've really focused it on the Sons user experience. So think about music. All your audio needs being able to move music from one room to another for instance. So ours, I like to say, is

you know an inch wide and a mile deep. Whereas you know our partners at Amazon and Google, they offer you one which is a mile wide and an inch deep, and of course, um, we want to provide customers choice, so you can actually use alexas simultaneously with the Sono's voice control. So what's the long term goal with voice control? I mean tell us a little bit more, what you

mean using that mile wide into apart metaphor? Yeah, so really making sure Yeah, I think I think we've seen kind of a first wave, right, and UM, we usually see this with I think Gartner's hype cycle in terms of the excitement that comes from that initial wave of um, kind of the first part of a technology curve, and we saw that with Alexa and Google Assistant, and now I think what you'll see is more purpose built assistance, which really focus on the actual user experience for a

particular product or a particular brand. And so you know, we've done a lot of work to make sure that you can get the music faster. It's recalling what music you've been listening to. It's very specific to the Sonos use cases. And again, like I said, private and runs

locally because we heard from customers that that's important. And so what we're really trying to do is drive engagement because we know the more customers engage, the higher their lifetime value will be, the more chance they have to come back and add another Sonos product to their system. Now, we saw strong demand for your products in the last quarter, but obviously inflation going up. So NOS products are discretionary products.

You know, how do you think inflation is going to impact sales this quarter and the rest of the year. You know, we continue to see very strong consumer demand. UM. You know, last year we had a huge year UH driving top line sales growth UM and this year we planned for fift UM. We've reaffirmed that in yesterday's news UM SO so we'd obviously taken into account the fact that we know we felt we got some tail wind obviously from people being at home UM. And we feel

very good about our business model. And you know this supply wheel we have of existing customers telling their friends and family they should get so Nos. The number one reason people come into so Nos is still from family and friends to telling them, and then we have existing customers come back and buy the new products. And so with a whole set of new products we announced yesterday the great portfolio we have and we have a backlog emily, So I mean, we feel really good about where we

are today. Despite I know some of the macro challenges that are out there. You raise concerns about supply chain issues and rising component prices, just how you know, difficult are those going to be to navigate over the next several months. Yeah, you know, it's been something that we've been dealing with really for eight quarters at this point, and we had hoped, and I think the industry had hoped that by the second half of two UM most of those would have dissipated. That is not the case.

And obviously nobody anticipated China going back into a COVID zero situation in Shanghai, and so that's really impacted things as well. And so now we're expecting, and we've been planning for the rest of twenty two to really be challenged in terms of logistics and shipping and component costs, and so we've built that into our model UM as

we think about delivering the year. But I would say, Emily, at this point, from everything I can see, expect the supply chain challenges to continue for the industry for the rest of twenty two. All Right, Patrick Spence, CEO of Sonas, thank you. Welcome back to boone. We're technology Emily changing in San Francisco. Let's get back to the markets, and robin Hood is shoring in late trading after filings showed a new stakeholder. Bloomberg's Ed Ludlow here with who it

is and take it away. Yeah, it's Sam Bankman Freed of course, co founder and CEO of f t X. He's got a seven point six percent stake according to a regulatory filing based on today on Thursday's closing price of eight dollars fifty six cents a share, that would value his stake at five sixty seven million U S dollars. And you can see the reaction in after hours. We

were up even higher just a few moments ago. We'll have to spend the next twenty four hours and I'm trying to work out what this means for the future of robin Hood. Of course, such a big year for the platform, build up a huge user base of retail traders, but then transactions started drop off, volatility, volumes not what investors thought. It would be one to watch going to Friday as well. Another interesting name in the world of markets.

We're looking at soft Bank reporting a record and your loss, and this is Massaoshi son with a lot of problems. And you see these are the US listed shares of soft Bank. This is its Vision Fund unit that we're talking about. You're so familiar with it. But annual loss having just closed out the fiscal year of twenty point five billion dollars to zero point five billion US dollars. And you know, this is a company of knows that the invest principally in private sector right startups, but it

was its public bets that really suffer. Let's bring up the board and look at some of the biggest names. This is how they performed over a twelve month basis, names like uber, Kupu and d D. That is a lot of red and you can see how that kind of failing in the investment approach kind of failed ultimately for Vision Fund. I think the other big takeaway very quickly, m is that they've really cut back the funds that

the Vision Fund is deploying. You look at recent quarters, the period January March, they only authorized two point five billion dollars to put into their portfolio for new startups. That's a real departure from what we've seen in recent quarters. Think about two thousand and eighteen. You remember that one M thirty three billion dollars in a single quarter for the Vision Fund. Times to change for Massaci son how

could I forget Ludlow? Thank you well. One area where soft Bank was more bullish was ARM, It's chip design unit that is preparing for an I p O. Massa son As detailed how fast ARMS growing and how it could ultimately become the most valuable asset in SoftBank's portfolio. Joining us to talk about how ARM gets there. It's CEO Renee has Renee great to have you back with us. So we're gonna get to the SoftBank stuff. But let's talk about how ARM is moving into more markets and

also more valuable markets. What opportunities is that unlocking for you. We've got a great year. We just announced our results earlier yesterday or wherever you pan time. Was record revenue, record profits, record royalties, record licensing. We're seeing demand for armed technology emily across all the sectors, particularly though in the new markets such as automotive hyper scale or slush,

infrastructure and IoT. We've had huge growth in all those areas that the demand for armed technology has never been better. Where do you see specific opportunities for growth? Is it, is it computing, is it automotive? You know, what are going to be the biggest parts of ARMS future In the future. One of the areas that we've been known for historically is around power and power efficiency. And if you think about smartphone, where ARM has historically been known

for we've had great success. That is the ultimate device that's all about power and power efficiency. Now think about the data center or think about electronic vehicle. UH, both of those have the same type of requirements. They need to be very power efficient, they be very mindful of performance, and they have to be able to scale. UH. Those are two areas where you've seen huge growth in the in the last year, and to your point, it's an area that it needs to be a huge growth theory

form going forward. Still, investors are bailing out of chip stocks. You look at the semi conductor index down further than most of the major UH in the cry so far this year. What aren't investors getting? You know, demand is high, but still concerns about supply. You know, I can't really comment on the on the valuations and what's going on the stock market is if I knew more about that, I wouldn't be in this chair. But the supply issues I do think are going to stay with us for

a while. The everything involved with semi conductors is complex. Building new fabs is complex, Advanced technolog is complex. You have more and more complex packages, which means you have substrates, you have different packaging techniques, and the layer on top of it. You know, these automobiles, for example, that require not only a significant semig it or content, but other

areas that need to be shipped into the car. The supply change has been stretched in a way that we've not seen before with the pandemic, and I think that's going to make the world really complex at least for the next year or so as far as I can see. And when are we going to see the end of these shortages? Like how long does this go on for? If I had a crystal ball again, I would probably

be in in a different industry. But I think it's gonna be with for a while, Emily, because again, when you think about the investments required for semiconductors to build a five dentimeter or three dynimeter fab, there is a huge, huge lead time associated with that. The chips take longer and longer to build their longer and longer to manufacture, which means predictability gets harder. And then increasingly in some of these products you have more and more content and

it's not just one chip that's not available. If you have an entire product that's all manufactured and you don't have a diode, let's say a power diode that can go into the car, the car can't ship. So again, I think going forward, UM, we've got to get our arms around when this new world is teaching us relative to supply, and I think it's going to take a little while. There's a report that soft Bank plans to keep a majority steak in ARM after you spin it off.

How big a steak are we talking about here? And what what conversations have you had about this? I can't say too much about specifically we Massa son has said that ARM is preparing for an IPO, and they have said publicly that they intend to have a controlling interest going forward. I think what that says is Massa thinks that the long term prospects for holding ARM is really good. So I think that says a lot about his confidence in our future going forward. How soon could an IPO happen? Yeah?

I can't really say, hard for me to kind of go forward on that area, but as we've said before, we're preparing to make that happen. Okay, but how are you evaluating this market turmoil and could that delay or influence your plans? Obviously, market timing is going to dictate a lot of things. You know, who can say what the market's going to look like. We're just doing the kind of things that we need to prepare for an IPO. All right, Renehan, CEO of ARM Thank you. Coming up.

Crypto goes down and down some more. How the Tera meltdown is giving fodder to crypto skeptics and how low can markets go? That is next? This is Bloomberg. I wouldn't characterize it at this scale as a real threat to financial stability, but they're growing very rapidly and they present the same kind of risks that we have known for centuries in connection with bank runs. Dominoes are falling in crypto. First it was the collapse of algorithmic stable

coin terra USD. Now it's grown up cousin tether, wavering from the peg and fueling concern over its status as a place to hide in times of turbulence. Let's talk about what it all means with Bloomberg's own Olga. Careif who covers the cryptocurrency market for us so Olga, I guess it's fair to say we're in at winter. How is this winter different from the ones that have come before? Absolutely, I think it's pretty clear we're in a crypto winter.

We had one in eighteen, but of course today what we have that's different is that we have a lot more institutional investors and that's why crypto is behaving more like a risk acid that's kind of moving in line with the rest of the of the the market. So remind us how the last crypto winter played out and how you expect this one to play out, given that there are more people with skin in the game. Absolutely,

definitely more people. So so what happened was in twenty eighteen, thousands of coins basically died, and lots of projects went under, and lots of new projects got hatched. And I expect we'll see the same thing happened now. You know, if this crypto winter is prolonged, a lot of this projects and coins will die and we'll see sort of a clearing of the plate and we'll see what the strong players are who are the survivors. Now, let's talk a

little bit about coin Base. Their valuation dropped precipitously and just over the last few days. I'm curious when you think this means, because coin Base has been, you know, in some ways a measure of what's happening in the broader crypto space. Absolutely so, there obviously the biggest exchange in the crypto exchange in the US, and their value dropped by more than you know in the last week.

And uh, basically it's a very sort of strange situation because just several months ago, much smaller competitors Blockchain, dot Com and Gemini raised money at very high evaluations. But obviously now all vcs that are looking to fund crypto company you start looking at coin basis valuations and are saying, you know, maybe the companies in our portfolios and the companies coming to us are overvalued, and so this could have a ripple effect on venture capital activity in crypto.

All right, lots to continue to watch and digest. Thank you for giving us the temperature of this particular brand of winter ogo caref appreciate it. I want to continue the conversation with Nicola Julia for more on this. He's the CEO of Sowhere, an n f T based free to play fantasy sports game that just announced a partnership with Major League Baseball and the MLB Players Association to launch the official n f T based fantasy sports game

for all MLB teams. Um, we're gonna get to baseball, and I'm a huge baseball fan, Nicola, But I want to ask you first about the markets and you know the fact that we're we're in in the middle of a very cold spell. What's your take? Yeah, how many thanks thanks for having me. I think us a little like for us, like we are using NFT technology to

the benefits of the funds. We don't have any cryptocurrency or token that we developed, um, and so you know, we are growing independently of the crypto currency market, which is again to the benefits of the time. But does this impact at least sentiment about the future of Web three, the future of n f T s and sort of

the growth of this new frontier. I think in general obviously, as any regular innovation, you have cycles, right uh and uh and so Surreal has been founded in at M during one of the biggest crypto winters, and I think, you know, building during the cycles helps because you have less destructions, you have more focused uh and uh and the less opportunistic you know, like people building in the space so um so like we love building in winters

to uh. And yes, the sentiment maybe less good right now, but I think the lead once of tomorrow will be built right now. Now. There has been some controversy about what's actually happening in the n f T market. The number of traders is still growing, but n f T prices are declining. I'm curious what you're seeing in terms

of your own sales and the business that you're driving. Yeah, I think what sets around upon is the usage value of n f T s. So we we've seen, you know, a lot of projects growing around the pre collectible value of these antist but you know, for us, it's all but what you can do with the n XT. So we have this fantasy game where you can play with

officially lessons and extis. And so we have been growing consistently the last three hongths and in the last couple of weeks as well in terms of sales because five million in salons and we will keep them growing we expect to do seven hundred million. Uh and I think that makes all additions right, like what you can do and you can engage and retain defense because of the

experience you have. Now you just announced this partnership with AMU and the players, who as we know, don't always necessarily agree, how did you convince them to get on board? And white Baseball, I think they ask us free, free, big questions. The first one is like, like, are you the best bonner to help us grow this huge category and Steve fantasy um and uh. And you know we have proven with so con that we we created this category and we are the best place to develop it

with top two s pons. So that was question number one. The question number two was like, are you the best bonner to help us grow the audience? Uh? And we are. We are selling in one hundred and eighty countries because the glob we have a global audience, and we're gonna we're gonna help the mld P and the MLB uh to you know, to to grow they reach again overseas.

And then the third question was like, are you the best bonner to provide the best experience to the funds And so we are building an amazing team in the US with people coming from ESPN and DraftKings in all this companies that do amazing products. Uh, and so we we are very confident, all right, excited to watch Nicola Juliets, CEO of so Rare, Thank you for joining us. Let's take a look now at China still battling a wave of COVID infections with strict lockdowns that are threatening the economy.

In fact, one of China's top statistics officials says the outbreak has caused quote a huge shock to the economy, a rare recognition of the cost of the government's COVID zero strategy. I want to bring in Bloomberg's Allen one now for more on this. Who is joining us live from Shanghai, Alan, Thank you so much for joining us. We've seen your reporting earlier in the middle of this lockdown, we saw your refrigerator getting low. You talked about your

inability to go out and get more food. Talk to us about how you're doing right now and what exactly you can and in the midst of this lockdown at this date, well, I was Tyde. I'm on date forty three of my four day lockdown. And joking aside. Uh yeah, it's been. It's been incredibly talk very frustrating, as known as the people like me in the situation right now, I've actually walked downstairs, walk within my compound and and get pick up like a food. Uh that's that's delivered

to me. Obviously not not many shops are open, so um, you know, I'm sort of like sort of stuck to whatever is available. Although the other day I think get some connective fried chicken. So the food situation has ease a little bit, but there's still a lot of concerned

about these cardin facilities. People are still being um casse in a course too into into going into these facilities if you test positive, and they've actually tightened some of these restrictions before if you live in a building where you have some positive cases, as long as they're any close contacts, you don't live in the same floor or

something that and you wouldn't have to go. But now even if you test negative and as someone in the building that test positive, the likelihood is that you know, you could be sent into these uh coin facilities. And we've seen some of these images that look pretty uh pretty grim. We've seen the frustration in social media post people who can't get food? How would you describe the mood? How are people in Shanghai taking this well? I think

there's a lot of people like me. Uh. I hate to meet his analogy, but I'm going to There's this book by Elizabeth cool or Ross of Deaf and Dying, where when you have some really bad news about about you know, maybe your help or something, and you know, you're go into shock and anger and moved through the several stages of despair until you reach the final stage,

which is uh, acceptance. And I think a lot of us are at that stage of acceptance and which right now we're just waiting around hoping that you know, this lockdown will end sooner or later. Right now, the most important metric of all is this one called community spread against the number of cases outside of these quarantining facilities. And there are three three consecutive days of no community spread.

Theoretically we should be able to be released from lockdown and last month for two days, and then the third day there are a couple of kids that popped up and we're back to square one. So that's why we're looking at it right now. I mean number of cases, Shining has been falling, but communist spread has still been persistent. So we're hoping that at some point, um, you know, we're going to be released. Like it's very frustrating and

and we just got to wait and see. So there's obviously a question about how this impacts not just the local economy but the global economy. Now we're also hearing rumors about a lockdown in Beijing. The Chinese government, as I understand it, has denied those rumors, but we are seeing a lockdown light situation. What can you tell us, Well,

I think two points. First impact on the economy into Paiging. Well, you know, yeah, exactly, even though the number kids in Beijing, um that there have been that maning you know, roughly in the teens um. But the problem is that it's it's still there. And the guvernment said that you know,

there's there's not gonna be locked out in Beijing. That's what we were told as well, you know, but it seems that you know, they're moving in upper direction obviously direction and did be shutting down subways, they would do a lot more mass testing. So I would tell us some of my Beging friends stock up, especially coke. You know, buy lots of coke because that's a valuable commodity during

its lockdown. And you're right, there's been a big impact on the glotal economy, especially on you know recently we see all the day to coming out of China. It's pretty ugly, manufacturers contracting. We don't of course, consumption is weak and inflation is surging, just like in the rest of the rest of the world. Um so, and what does I mean for China. I mean basically that it's not it's not going to meet his ambitious growth targets for this year. Why I don't think so anyway. Um now,

long for us from Shanghai. Thank you so much for joining us all. And I know it's early in the morning there before. You really appreciate you giving us a view from China that doesn't For the sedition of the show, we're gonna be back tomorrow, I'll be joined by Greylock Partners and LinkedIn co founder Reid Hoffman. Always fun to talk to him, and of course check out our new podcast anywhere you get your podcasts. I'm Emily Changing in San Francisco. This is Bloomberg