carolyn: i am caroline hyde. visit bloomberg technology. the opposite rental company we work has been slashing his violation before its ipo gets cut in half. more on wife. .- why this is pushing back any initial shares until 2022. forget facebook lite and what about facebook love? the company is working on a data service. sources are saying that we could as much as 20 million for we work. a lot is riding on the success today. one company could get hit even harder. i am pleased to be joined here. this helps create the hyperfine board. joanne has been covering the story for us. let's get this all in context. julian has been keeping abreast of the numbers. why the lower evaluation? it could be as low as 20? round ipo's have been increasingly common. bit are projecting a little on we work. it is looking at the revenue and growth assumptions. >> to get perspective on ipo's and how much this is being factored and, kathleen, your perspective on this sale, was 40 million layout of the league -- league?of the >> most of the investors and analysts are looking at the buy side from we compan

caroline: i am caroline hard -- hide and this is bloomberg technology. its valuation before the ipo by as much as half. more on why and what is at stake in the compnany. peter thiel's data mining company is on the hunt. pushing back on the initial share filing until 2022. forget facebook likes. facebook love?ook more on the plan for their dating service. significantly reducing its valuation ahead of the ipo. they are saying we could now target closer to just $20 billion. one company could be hit even harder. and its affiliates who own a 29% of wework. this is a software company using protista helped create -- , -- in new york let's put this in context. you have been keeping abreast of the numbers. why the lower valuation? $47 billion is what the last funding round was at and now it is at 20 billion? common. are pretty investors saw how uber and life to performed earlier this year and they were projecting a little bit on we work and its growth. some growthking assumptions and are now paring down their expectations. carolyn: to get the perspective, kathleen, your perspective on this s

4.6% and chipmakers up. caroline: so much data to digest this week and out of china. let's look at the markets. reporter: i am still thinking about the bank stocks because they were a drag. the major interest is -- indices do not finish higher. facebook and google, alphabet really bracing for antitrust probes. you can see the shares down 1.8%. allon, netflix and alphabet lower. the overhang of big tech being regulated has weighed on this. let's put this into the weekly. something did happy, the faang the closing back. back to 2015 and a high of 2018, the complex rising 170%. incan see from 2018 stuck this range, the facebook social media rose, the regulation fears, now down 10% from the recent highs of big spreads for what the s&p 500 is doing. these have got to get on board if the s&p 500 will continue climbing. this chart is not so bullish or bearish. it is stuck sideways so it will be interesting to watch. that has notething been stuck sideways is the bond market. i want to bring it back to that space because when you have conversations about the slides we have seen in yields, many

financial crisis. >> it all comes back to the data. caroline: we are down by a quarter of a point on the s&p 500. we were up by about 10 points. >> the russell 2000 underperforming, i guess, down 1/10 of 1%. volume 20% below the average for the dow and s&p 500. it looks like the fed has got to cut again. let's dive deeper into the action. ?bigail, what were you watching this: we take a look at one-year chart of the s&p 500. all the volatility over the last 12 months. more recently going above it just a little bit. two -- the index is having a hard time. another whipsaw back down into the range. taylor: it was outperforming the broader market by more than a percentage point. we have had no trade news today. no news is good news. the index has been so sensitive. thented to look at some of individual stocks. here in the terminal chart that i am showing terminal customers, the index in blue and creating a divergence here. analysts are really wondering where the stocks come down for dram. in the case of micron, credit suisse, could have a bottoming out cycle. micron gets a lot of revenue

factor. caroline: nasdaq off by 1.5% today as we see in the line of fire from a regulatory perspective once again the big social media names. -- chipmakers in the line of fire. aboutt: the index off 3.25%, the most since late august. nonetheless, it feels different this time because there is something more to it. thes a case of the pile on, negative headlines. joe: a company like shopper fight getting destroyed over the last few weeks, i don't think they are in the lineup regulatory action. nonetheless, they were so hot and are getting creamed. caroline: abigail, what are you watching at the close? abigail: the technicals on the tech heavy nasdaq. this is a roughly 1.5 year chart. the range, the complete range. we had the last bit of the rally, the fourth quarter volatility. triedct that the nasdaq to touch down onto its 100 day moving average in yellow. you can see that has happened before. thelast time that happened, time before that. the biggest point, all-time highs, buyers are not very enthusiastic. suggest we will be sideways for a bit longer with stocks. sentiment, risk off you

everyone is trying to digest how far central-banks can go. caroline: even though the ecb perhaps did not come in, 20 to easing would help the bond yields in europe, it would help with optimism to accent. the mood music is strong. yields backing up hugely. up 13 basisyear points. brian: european banks ended up 3% today, and that is one of the most beaten-down sectors in the entire world. whenever it was, they liked the latest turn. scarlet: investors in u.s. financials liked it even better. energy at 3.4%. three sectors closing better than 3% on the week, materials, energy, and financials. i guess those were your rally stocks. caroline: good old fossil 2000, --russell 2000, that, oo. what are you watching? >> this was a big week for the russell 2000, up percent on the week -- up 5% on the week. it is the exam performance and small-cap vs. large since the presidential election. if you take a look at this chart, the ishares small-cap fund, it tracks the russell 2000. investors have added $4 billion to this fund this month and it is the largest inflows since 2016. what investors say now is w

caroline: pretty muted reaction across the benchmark. airlines, also some of the companies similarly had. generally, russell outperforming, very energy link. some of the banks exposed are also doing well. of two dozen, energy clearly the best performers. the next best is real estate investment trusts. gmomakers down about 2.5% as faces its first right with the uaw in years. caroline: abigail, what are you watching? abigail: crude oil, today, that the best- that surge, day in about a decade. there have technical difficulty so i will pass to you, renita. renita: is huge jump in crude oil today. oil, corn,ing crude as well as sugar. raw sugar futures climbed more than 1%. corn since 95%g of it is ethanol produced by corn. index is a's energy more than 3% on the day. thesefluencing agricultural commodities depends on how long the -- will last. 2%lor: mgm international ports that blackstone a -- on reports that blackstone may be looking to purchase two properties. back in january that vegas based form an independent committee to look at ways to extract value from real estate. if you want to l

caroline u.k. deputy cio. does the payroll number change anything for you? caroline: not a great deal. it was slightly weaker than what the market was expecting, but i think it is also a sign of the fact that unemployment is as low a sign of the- fact that when employment is as low as it is, job accretion will slow. i know it is a little bit of a help but it certainly will the people thinking there is going to be a rate cut in september. guy: yields have moved a lot over the last month. equity markets still look pretty solid, though. to all-time close highs. which side of that makes you nervous? caroline: i think the reason why we got a lot of cuts going through is not because of fundamentals in the u.s., but because of the sort of global risk emanating from trade. as we go through the outlook for the earnings in the equity we see what impact the global slowdown is having on the earnings. that will then decide which way the equity markets are going. we are slightly underweight equities against fixed income. vonnie: how is the ubs u.k. investment office thinking about what is happening wit

interest. caroline: you would have thought that news would have been of interest. moments, aring their lot of questions there. cannabis questions. but not ipo questions. the number one theme of questions i get i far is about the deficit. romaine: wow. caroline: so, that story does not change. >> well, it gets worse and worse. it changes in the fact that there is now bipartisan support for not caring about. our politicians on both sides don't seem to think it matters. i often get the question, are we ever going to hit a debt wall. if you are talking beyond federal government debt and you include things like housing debt, i would love to know what rock you are living under in 2008 if you don't think we hit a debt wall. we had the bursting of a massive debt bubble that took the global financial system down, unleashed massive deleveraging on the household and financial sector but also ramped debt at the government and corporate level. i think the implications on federal debt, which many will say we don't have to worry about. we can print our own currency. i think we are already living the impl

where there are significant trade tensions. caroline: they were on a tear today. how long do you need to see weakness in the u.s. dollar to be able to vindicate the evaluation? i would want to see the dollar -- i want to ask about the dollar in the international scene. multinationals are more heavily exposed in the rest of the economy. gina: if you put it in perspective, trade is 30% of economic growth in the u.s.. also 35% of the s&p 500. the differential is not that significant, however multinationals tend to be larger companies so they have a bigger sway on performance. they are a bigger share of overall earnings. in particular, when you look at tech companies, tech has the most exposure overseas among all sectors in the s&p. it is also the biggest segment of the s&p 500 and it was the biggest earner last year and has really struggled this year. you do see this manifested itself in the s&p 500. i think it goes back to trade. the risk has created this inflating dollar environment. that is depressing multinationals, but it is not the only story. has sectorch specific issues. slo

market. caroline: interesting how it has morphed. volumes were elevated again. >> they were. the russell denniston the red. 20% -- correction, the dow volume six apparent -- 6% above the average. joe: real estate finally one of the top sectors of the day. caroline: they have to catch a bit at some point. 500, a nice uptrend. earlier today, less than five points from the s&p 500 taking on a new high. not quite making a mark at the close. it is worth noting, the brutal shownbeneath the s&p 500 .y that 200 day moving average if the s&p 500 cap climbed higher, we could see more choppy now,ng, but 20% up right on pays for the best year since 2013. >> for me, it is about the bond market. the 10 year and thirty-year year yields rising five basis points, meaning that twos and yield curve is steeping, a five or six level. today we are getting that classic risk on fuel with yields rising, steepening that curve. the trend has been different if we look at a weekly view. come into my terminal here on tlt, long-duration third this on news the largest bond fund flows, the highest level going ba

they have been in decades past. caroline: interesting, as we head for the close, a quarter of a percentage point higher on the s&p 500 index. there are some interesting headlines coming out about treasury holdings. once again, japan appears to be leading on china in terms of your top holder of u.s. treasuries. julyse holdings fell in 2.2 billion. certain that it is something that will come up in the fomc meeting tomorrow. what they think the u.s.-china trade war means in terms of policy as well. caroline: let's dive deeper on the action. abigail: let's continue the conversation on energy that you all were just having and brent oil into the picture. higher on theke attack on the saudi oil facility. what goes up must come down. today, down about 7%. huge whip saws. come onthat supply has faster than expected. when we put this into the context of a longer-term chart, much ado about nothing. the with the exception of huge move down in 2016 and the big one up in 2018, between 40 and $60. now right back down into that range suggesting that if there is a huge disruption for oil, we may

you are just losing less than anybody else -- than everybody else. caroline: we had to the market close, and the outperform or having its best day since the nasdaq, and it could not quite breach into the 8000. romaine: we should point out that the nasdaq is up. the nasdaq composite, which goes with smaller companies, that is slightly down for the quarter, down about 1/10 of 1%. the s&p and the dow up about 1%, the russell 2000 down. a trillion dollar company again. there is your round number. romaine: real estate and consumer staples. you're going to bet on that or on apple? littleht, let's dive a deeper with our markets reporters. abigail, what are you watching? "wacky" you called it earlier. i would agree. this is slightly risk off. this is a quarterly chart. yellow is gold, white treasury futures, and those are bonds, and then in purple, we are looking at e-mini futures, and the main diversions point when the fed lowered rates back on july 31, old shot higher, treasuries took off. that is pretty much in play. old is higher. treasuries higher, outperforming the nasdaq 100 -- gol

returns, noting that lawmakers would face inflation-pegged rebates to medicare. abigail or caroline? caroline: we have got some breaking news. a rating cut to junk by moody's, now seeing a ba1 for these companies, over at moody's, ba1 overall,t, a so this is clearly one for us to watch coming from moody's, and we know autos have been under fire, whether it is tariff concerns, trade concerns, and, indeed, overall the element of a need to make money in an era where perhaps people are not purchasing as many car so quickly. guest, sherryour paul. this is interesting. this is a time when corporate's corporates- when have been doing this, and are we expecting a rush? they will not think be as intense. that is a pretty easy call to make. i would say hindsight is 20/20. that was kind of the great tell, the ability to absorb that amount of slide with fairly low concessions, and how you see that reflected in the stock market, for the first time in a very long time, buybacks -- you look at kind of gross buybacks or the kind of sector-neutral flavors, buybacks are really outperforming. that is

company. chapter two of tech's evolution is centered around reconfiguring data. caroline hyde spoke exclusively with ginni rometty about the cloud and why they can be collaborators. ginni: this is something we always felt so true about, that the customer is first. you live in a world where sometimes your innovation will come from google, amazon, microsoft, ibm, and you want to take advantage of wherever innovation comes from. you want to build something once, run it anywhere. the second part, you want to get to innovation wherever it is. in almost every business, you have competition and cooperation. when we bought red hat, absolute commitment. it is open source. absolute commitment to the integrity of that. that is really for our clients. caroline: would you still see microsoft, amazon as competition? ginni: we are the number one hybrid cloud player now. that is what i want my name synonymous with. number one hybrid cloud, best partner to make you a cognitive enterprise. data and ai infused in all the ways it does its work. if you do that, you have to have a hybrid cloud underneath

bondholders are worried about we work. this is bloomberg. caroline: i'm caroline hyde where live from bloomberg headquarters in new york. there a lot of rotation going in under the headlines. joe: the question is "what'd you miss?" caroline: apple's big bet is rolled out, of rated iphones. up,lett: and china opens slapping a foreign investment limit and its stock and bond market. is beijing's move a sign of desperation? concerns on the we work ipo. we work slipping below face value since the august leasing company file to go public in august, spooking bond investors. is the us now to discuss bloomberg credit reporter. some people might not realize it but there is already a publicly traded we work intimate out there that we can see every day for the first time in a while we're actually starting to see weakness in the bonds. >> yes the bond had been doing quite well on this ipo news. but what is that happening lately as investors are getting a little bit nervous. we work is a cash burning company typically not your usual junk bonds issue out there. but right now the bonds are down about

. caroline hyde asked how ibm approaches the human element of disruption. >> there's no doubt we are in a digital era and there's no doubt in my mind that this technology will change 100% of jobs. >> there's a lot of people that want to talk about this job will go away, that job will go away. to me, that is not the issue. the issue is it will change how you and i do our work. almost all of us will interact with these technologies, and it's happening fast. i consider the word responsible stewardship. it's one thing to make these technologies, but if you make them, you had better bring them safely into the world. if part of that means you prepare society, your own people, and in the world at large, and when i say that, what i worry most about is this cannot be a world where it all goes to a few people, where the benefits do, and that you have to have a college degree or phd. i have an entire workforce of that, but that cannot be the world. you start to have have and have-nots and this is what has led to a lot of unrest in the world where people go, my future is not better than my curre

. caroline: the u.s. led the charge in this respect. do you think other geographies might look into the child part of the equation, whether there are any other laws being broken or not abided by in quite the way they would like in other parts of the world? >> it is certainly possible. each country might have a different approach to children's privacy. the way congress struck the balance of the children's online privacy protection act is to have parents make the decision whether information about their children could be collected through online sites and services. in that way, what they are trying to balance is the incentive to create child-directed content against the desire to make sure children are being protected, and that is the way we have struck the balance in the u.s., through congress making that decision. caroline: some lawmakers are not always thrilled with how policies are enacted by the ftc, as we heard. he mentioned the sweetheart deal for facebook. that sweetheart deal was a $5 billion fine, so a significant chunk of change, even though it pales in comparison of facebook's

-to-day lives. caroline hyde spoke to her about how diversity is key to the relationships with employees and customers. ginni: i deeply believe in responsible stewardship of technology. people have got to trust these systems. the second is that you have to prepare society for them. the third is around diversity and inclusion. for as long as i can remember, for ibm, it is what the firm has been built on. even longer, from the very beginning. i have really grown in that environment. the first woman senior vice president was 1943 and she was 27 years old. then i fast-forward, in the time in america, for the civil rights amendment, 11 years before that amendment, 11 years before that had declared all of the same points. it has always been about that you have got to get the best workforce, and the set of values so people can come to work and give their best. that is really what it is, give your best out there. then you jump to, if you build those technologies, you have to build them with a diverse workforce. especially with artificial intelligence. you have to represent one of the b

. caroline hyde spoke to her about diversity isut how key to the relationships with employees and customers. ginni: i deeply believe in responsible stewardship of technology. people have got to trust these systems. the second is that you have to prepare society for them. the third is around verse the end inclusion. for as long as i can remember, for ibm, it is what the firm has been built on. i have really grown in that environment. the first woman senior vice wasident was 1943 and she 27 years old. the timest-forward, in in america, for the civil rights amendment, 11 years before that had declared all of the same points. it has always been about that you have got to get the best valuesce, and the set of so people can come to work and give their best. buildou jump to, if you those technologies, you have to build them with a diverse workforce. you have to represent one of the biggest things around bias. bad bias.ood bias and treatst something which cancer patients. it with only trained three institutions. we are like, they are the three a badn the world, is that idea? ,his idea of

you miss. bloomberg technology is next. this is bloomberg. ♪ caroline: i am caroline hard -- hide and this is bloomberg technology. its valuation before the ipo by as much as half. more on why and what is at stake in the compnany. peter thiel's data mining company is on the

doubtful. caroline hyde and scarlet fu caught up with the vice president of risk management partner relations. >> the products we offer are superior products with high quality and all the features and functionality of all of the other flagship phones at a significantly competitive price. and that is something consumers are missing in the u.s., both in the smartphone area as well as other products and technologies we sell and support. scarlet: if you could be more specific on that. one big issue we have is the lack of broadband access for people in rural parts of the country, partly because companies do not want to pay for it. why is it advantageous for rural communities in particular to use huawei gear? what is the sales pitch? >> well, there's a few reasons. frankly, there's over 24 million consumers in the areas that huawei covers. we provide technology and capabilities for operators in these regions. because of our experience, many, many years of experience in rural china, building up the rural chinese technology -- or the communications networks. as we go forward, we are able to

. b.m.w. is bracing for disruption from the hard exit from the european union. bloomberg's caroline conan spoke with nicholas peter. >> b.m.w. is probably the manufacture who is best prepared to volatile markets. why? because flexibility is clearly one of the area in particular in production we most focus on because we know from the cost that markets are volatile. we have this facility in the last couple of years. and in previous years, do we like to see a volatile market. >> of course not. >> it's always easy -- if everything is predictable. but we are well prepared. why are we well prepared? because we have a strong production footprint on one-hand side and the u.s. we invest in the u.s. as we speak. we are strong in europe. we invest -- you open a new and we extend it. >> in europe the main concern is brexit. have you set aside any provision in case of brexit? and do you have ex-koreaned concerns and what's going to happen after this october 31st deadline given what's happening in the u.k.r. we mentioned it and communicated over the last year at every possible opportunity. b.m.w. stand

weekend. ♪ carolyn: i am caroline hyde. visit bloomberg technology. the opposite rental company we work has been slashing his violation before its ipo gets cut in half. more on wife. .- why

bloomberg's caroline hyde. >> i do think of myself as a steward and this is a 108-year-old company, and i have been blessed to learn from many of the people that came before me, so i don't answer that question lightly, and the company has had to be reinvented many times. it is something many companies have yet to face. it's one thing to put out new products, but it is something else when the competitive landscape attacks your core business models and you have to develop a new one. core business models are the more difficult thing to have to come to build a new one. and so i could just now start to reflect on a lot of this. it's funny, when people say what have you learned, and i say you keep in mind what does not change. to me, what does not change is the purpose of the company. ibm's purpose is always to be essential to the world in some way. that is really to me my first lesson -- be clear of what the purpose is because that is the core around what people do. the second thing, though, is do not protect your past. in my time today, 50 percent of ibm's $80 billion is new products and se

.? the other is how long does it take to bring the supplies back in? caroline: saudi arabia's plan has restarted and is processing about 2 million barrels a day, restoring half the output lost. the facility was damaged according to aramco's chief executive. the kingdom expects it may take until november to restore full production capacity. >> by the end of september, the production facility will be at capacity. >> you were able to meet shipments to international customers? >> we are able to meet shipments to international customers. >> the overall message is one of reassurance by saudi aramco. the goal was to get across to the market, yes, we have suffered. yes, there is some damage. but as for customers, we will deliver what was promised. that is one of the things we took away from the minister's press conference. which was we are going to deliver the full contracted amount. we may not get it from the fields affected, the oil processing facility that was affected. what we are going to get it from some of the stockpiles we have on hand, but we are going to make the customers whole. i t

federal reserve. this is bloomberg. ♪ ♪ >> we are live from new york. i'm caroline hyde. it is a snapshot on how u.s. stocks close today. staging quite a comeback. >> the question is would you miss? >> the fed cuts again. president trump ways in saying the central bank has no guts no sense no vision. focus, --ney market saudi arabia blames the wrong again saying attacks on the oilfield were unquestionably sponsored by tehran. >> breaking news here on at the, their shares are moving around after hours. it is said they would do a private placement of convertible notes due in 20 36. you can see the shares down 1.6%. they were down as much as 4%. >> let's talk about the fed hawkish view. lowering the benchmark rate for a second time this year. policymakers remain split over the need for more easing. >> we are not on a preset course . we will make decisions meeting by meeting and we will try to be as transparent as we can. if the economy -- economy does turn down, a more extensive sequence of rate cuts could be appropriate. it's not will we expect but we would certainly follow that pa

their probe on criminal cases. caroline: this wraps into the issue of stealing intellectual property, which is the main accusation. i want to ask you, therefore, the new additional instances of alleged technology theft -- is this something that is new to you? how are you responding to prosecutors? are you in day to day touch with prosecutors in the u.s. government? >> i cannot really comment on ongoing litigation. i believe that information is related to those investigations. what i can say is huawei is a leader in ip. we have over 90,000 patents globally. we have 20% of the global 5g essential patents, and we are a proponent of fair and equal licensing and so on. we license over $6 billion worth of ip from other companies, and we also sublicense our ipo to other countries and companies at about 1.4 billion annually. we are concerned about ip theft hold a significant number of patents, and we would like to see those issues addressed, but we are a proponent of, you know, of due process and handling of ip in appropriate manners. emily: still to come, reading the smoke signals. we speak

something that caroline hyde covered when she spoke down with ibm ceo ginni rometty. ginni: why look at the future, technology is coming. we're all about applying them to business but we build some of the world's leading technologies here. cloud and ai, everyone talks about that. to be done, but we will park those for a minute. the next two blockchain and quantum. thele overestimate them in beginning and then underestimate them in the long term. asked mechain, if you one word i would associate with blockchain, i would say trust. crypto is a use for that aside. -- a use, put that aside. blockchain come it should put trust between parties who don't even know each other. and it would do what the internet did for communication between lots of parties. so a great example on trust, what it allows you to do is you and i can share a transaction together. i don't have see anything you don't want me to see. and once the transaction is completed, it cannot be erased. why do we each keep our own checking accounts? the old days, we would each balance our checkbooks and the like. if i said to you

blockchain is what caroline covered when she sat down with the ibm ceo ginni rometty. the future of at technology, we are all about applying that to business but we built some of the world's leading technologies here. cloud and ai, everyone talks about that, much more to be done there by the way. the next two, blockchain and quantum. the case with new technology people overestimate them in the beginning and underestimate them in the long term. " whatain, if you said is one word would associate with blockchain?" i would say trust. you have to use the right kind of blockchain. my simple thing, what blockchain should do, people who put trust between parties who don't know each other, it would make trusted donsactions and it would with the internet did for communication between lots of parties. a great example on trust in blockchain, what it allows you to do is, you and i can share a transaction together and i don't have to see anything you don't want me to see. once the transaction is completed it cannot be erased. why do we each keep our own checking account, delete trust what the bank s

future generations. taylor: i spoke with creative strategies principal analyst caroline mellonasi. >> a lot of people complain from the get go that was a feature consumers wanted, especially consumers wanting to switch from a traditional to a smartwatch. today was about moving the envelope on the health side and really hearing apple clearly that this is an area where they want to stay for the long run, and creating a health research app speaks to that. taylor: his pricing at 300 300 $99 competitive or expensive? >> $399 is competitive, and even more competitive is the price point for the third-generation apple watch. we get carried away by the latest models, but when you look at this line, its more obvious that apple wants to get consumers that are part of their in-store base to venture into new devices. so you might be an iphone user and have yet to find out what the value add of an apple watch might be? -- might be. a $199 price point is an easier way to get you to dried than $399. taylor: so the $199 for the three that they lower today, you think that's a good thing? >> absolutely. i

, blockchain, is something bloomberg's caroline hyde covered when she sat down with the ibm ceo, ginni rometty. >> when i look at the future of technology, we're all about applying it to business but we built some of the world's leading technologies. yes, cloud and ai, everyone talks about that today. artificial intelligence and cloud. much more to be done there, by the way. we will park those for a minute. the next two, blockchain and quantum. as often is the case with new technologies, people overestimate in the beginning and then underestimate in the long term. but blockchain, if you said, what is one word you would associate with blockchain? i would say trust. you don't even have to use the right kind of blockchain. which is not always the case today. blockchainhing, what should do, it would put trust trust between parties who don't even know each other, so it would make trusted transactions , and it would do what the internet did for communications between lots of parties. what it allows you to do is, you and i could share a transaction together, i don't have to see anything you d

real-world application of quantum and blockchain is something that bloomberg's caroline hyde covered when she sat down with ibm ceo ginni rometty. in this exclusive interview. ginni: we look at the future, technology is coming. we're all about applying them to business, but we build some of the world's leading technologies here. yes, cloud and ai, everyone talks about that. artificial intelligence and cloud. much more to be done on that, by the way. but we will park those for a minute. the next two -- blockchain and quantum. as often is the case with new technologies, people overestimate them in the beginning and then underestimate them in the long term. but blockchain -- if you said, ginni, what is one word you would associate with blockchain? i would say trust. crypto is a use, put that aside. it has to use the right kind of blockchain. what blockchain should do -- it will put trust between parties who don't even know each other. it would make trusted transactions. and it will do what the internet did for communication between lots of parties. say, for example, if i can, on trust a