'Bloomberg Technology' Full Show (11/16/22)
CAROLINE: I'M CAROLINE HYDE. ED: AND I AM ED LUDLOW. CAROLINE: THE FTX FOLLOWED GROWS. GENESIS IS THE LATEST CONCERN IN A CRYPTO LIQUIDITY CRUNCH. MORE ON HOW THE FALL OF FTX WILL RESHAPE CRYPTO AS WE KNOW IT. ED:
PLUS, TIKTOK'S PROJECT TEXAS, TO ISOLATE USER DATA IN A PROJECT WITH ORACLE THAT THE CEO SAYS IS EXPENSIVE AND UNPRECEDENTED. CAROLINE: AND AN EXCLUSIVE CONVERSATION ABOUT TELEHEALTH WITH THE CEO OF CEREBRAL, WHICH HAS COME UNDER SCRUTINY FOR PATIENTS WITH A HISTORY OF SUBSTANCE ABUSE. IT WAS A DOWN DAY. THE VOLATILITY IS GOING TO BE PREVALENT IN THE MACRO ARENA. WE HAD THE PPI, THE IDEA THAT INFLATION IS PEAKING.
THE NEXT DAY, WE ARE FOLLOWED BY GOOD NEWS BEING BAD NEWS FOR THE MARKETS -- THE RETAIL SALES LOOKING TOO STRONG FOR THE MARKET TO DIGEST. THEY ARE WORRIED ABOUT THE FEDERAL RESERVE AND THE NUMBER COMING IN TERMS OF THEIR FOCUS ON HIKES THAT STILL HAVE TO COME. WE HEAR IT FROM JOHN WILLIAMS AT THE NEW YORK FED. THE S&P 500 FALLING ON THE DAY. THE NASDAQ IS UP AS WE EXPECT RATES TO RISE. THAT HAS A BIG IMPACT.
BITCOIN -- 16,500 IS ABOUT WERE BETRAYED, DOWN ON THE PREVIOUS DAY AS WE WORRY ABOUT CONTAGION EFFECTS. RIGHT NOW, WE THINK ABOUT CHIP STOCKS. WE THINK ABOUT EARNINGS. WE LOOK AT THE STOCKS OVERALL. THE INDEX WAS DOWN MORE THAN 4%
ON THE DAY AFTER MICRON CAME FORWARD WITH ITS CONCERNS ABOUT THE AMOUNT OF DEMAND BEING SAPPED FROM THAT MARKET. ED: MICRON VERY IMPORTANT AND EARNINGS CROSSING AFTER THE BELL. CISCO THE KIND OF HEADLINE THAT MAKES YOU GIGGLE, THE CEO SAYING DEMAND DID NOT DROP OFF A CLIFF. THERE IS EVIDENCE THAT GOVERNMENT AND CORPORATE SPENDING IS REALLY BOOSTING CISCO. THEY GAVE A PRETTY BULLISH FORECAST FOR REVENUE. NVIDIA BEATING EXPECTATIONS IN THE THIRD QUARTER.
IT HAS TAKEN A HIT FROM CHINA, WHERE U.S. TECHNOLOGY EXPORT CURBS HAVE HURT SOME PRODUCTS. THE MICRON STORY IN WEDNESDAY'S MAIN SESSION WAS A REALLY BIG STORY, THE COMPANY CUTTING PRODUCTION OF CHIPS BECAUSE OF THE WEAKENING OUTLOOK FOR FISCAL 23 AND THE DEMAND DROPPING OFF DURING THE SESSION. THE OTHER BIG STORY OF THE DAY IS TARGET. I KNOW THIS IS NOT TECHNICALLY A TECH STOCK, BUT WE ARE IN THE LAST THREE MONTHS OF THIS YEAR.
IT IS THE HOLIDAY SHOPPING SEASON. TARGET TAKING A BIG HIT TO PROPHET, SAYING SALES IS GOING TO DROP FOR THE FIRST TIME IN FIVE YEARS, REALLY WORRYING FOR THE LIKES OF AMAZON AND E-COMMERCE. TESLA UNDER PRESSURE AS ELON MUSK'S FOCUS IS ON TWITTER, NOT TESLA. THAT STOCK HAS BEEN UNDER PRESSURE.
THERE WAS SOME SPILL FROM WHAT MICRON HAD TO SAY TO THE REST OF THE CHIP SECTOR AS WELL. CAROLINE: NVIDIA JUST REPORTED, AND REVENUE WAS A BEAT, BUT THAT COMES OUT -- AFTER REALLY CONCERNING NEWS OUT OF MICRON THAT SENT SHOCKWAVES THROUGH THE CHIP SECTOR AS IT EXPECTS A SLOWDOWN IN DEMAND. DEBBIE WU JOINS US NOW FROM BLOOMBERG. WITH NVIDIA, THEY BEAT, BUT IT WAS A DROP IN REVENUE.
HAD MARKET ANALYSTS LOWERED THEIR GUIDANCE SO FAR THEY MANAGED TO OVERCOME THOSE LOW HURDLES? DEBBIE: WE HAVE MIXED NEWS TODAY FROM NVIDIA AND MICRON. THE DEMAND FOR PC'S IS STILL ONGOING, BUT THIS IS PARTLY REFLECTED IN THE DEMAND FOR PROCESSORS, SOMEWHAT WEAK. NVIDIA DID SAY DEMAND FOR DATA CENTER PRODUCTS ARE PROPPING UP SALES, SO WHILE IT'S REVENUE HAS NOT DECLINED YEAR-OVER-YEAR, IT DOES STILL BEAT ANALYST ESTIMATES. ED: CHINA IS A BIG PART OF THIS STORY, THE HIT FROM U.S.
EXPORT CURBS. THERE WERE BRIGHT SPOTS IN THE EARNINGS. WHAT DID THEY JUST SAY? DEBBIE: THE SALES INTO THE CHINESE MARKET, THE DEMAND IN THE CHINESE MARKET IS GOING TO OFFSET THE IMPACT FROM THE U.S. EXPORT CONTROL RULES. CAROLINE: OVERALL, ARE WE EXPECTING CLIFF FALLING? WE HEARD FROM CISCO, A DIFFERENT PART OF THE BUSINESS, SAYING DEMAND DID NOT FALL OFF A CLIFF. WITH NVIDIA, DID IT? DID WE EXPECT THE MARKET WOULD BE SLOWING SO VIGOROUSLY IN PC'S? IS THAT THE READ, THAT WE ARE BACK TO BOOM AND BUST WHEN IT COMES TO CHIPS? DEBBIE: IT IS DIFFICULT TO SAY BECAUSE THE PICTURE IS MIXED.
THERE ARE POCKETS OF WEAKNESS IN THE MARKET, IN PC'S AND PROBABLY A LITTLE BIT IN DEMAND FOR GADGETS LIKE SMARTPHONES. AT THE SAME TIME, YOU CAN SEE BIG COMPANIES LIKE MICROSOFT OR AMAZON CONTINUE TO SPEND ON THEIR DATA CENTER OFFERINGS. THERE ARE STILL GROWTH OPPORTUNITIES IN THESE SECTORS. ED: THANK YOU VERY MUCH. THE FALLOUT FROM THE RAPID
COLLAPSE IN FTX IS SPREADING ACROSS THE CRYPTO WORLD, ENSNARING THE BILLIONAIRE WINKLEVOSS TWINS THROUGH A LIQUIDITY SQUEEZE AT THEIR LENDING PARTNER, GENESIS. HOW DID WE GET HERE? ANY MASSAR IS HERE WITH THE BLOOMBERG BIG TAKE ON THIS STORY. HOW DID WE GET HERE? WHAT IS HAPPENING WITH GENESIS? WHAT IS THE LATEST? ANNIE: WE ARE SEEING THE FALLOUT OF THE FTX BANKRUPTCY ANNOUNCED LAST WEEK. ONE OF THE BIGGEST FEARS HAS BEEN HOW FAR THE CONTAGION WILL SPREAD FROM THE BANKRUPTCY, AND WE ARE ALREADY STARTING TO FEEL THE EFFECTS. BLOCK-FI IS SAID TO BE HEADED TOWARD BANKRUPTCY. GENESIS HAS STOPPED WITHDRAWALS FROM ITS YIELD PROGRAM.
GEMINI IS IN A SIMILAR POSITION. WHAT WE ARE REALLY SEEING IS THAT SPREAD OF THE EFFECTS OF THE FTX IMPLOSION LAST WEEK. CAROLINE: CRACK IN EXCHANGE SAYING THEIR EXPOSURE IS ONLY ABOUT A MILLION DOLLARS, AND REVERSING THE PRICE OF BITCOIN SHOWING SOME RESILIENCE, SHOWING THAT A LOT OF THIS HAS BEEN PRICED IN. FROM YOUR PERSPECTIVE, HOW MUCH
MORE OF THE ONION IS THERE TO PEEL BACK? THE THING THAT HAS BEEN FASCINATING ABOUT YOUR REPORTING IS THE EXTRAORDINARY NATURE BY WHICH FTX PENETRATED THE WORLD OF CRYPTO, BUT ALSO TRADITIONAL FINANCE, PARTICULARLY IN THE WORLD OF FUTURES. ANNIE: THE STORY WE PUT OUT TODAY WAS ABOUT HOW DEEPLY FTX PENETRATED THE TYPICAL FINANCIAL MARKETS, AND IT DID THAT JUST THROUGH ACQUISITIONS, A PRETTY SIMPLE STRATEGY FOR A COMPANY THROWING OFF ALL KINDS OF CASH, OR SO IT SEEMS. FTX, WHAT HAPPENED WAS LAST YEAR FTX BOUGHT THIS DERIVATIVES EXCHANGE CALLED LEDGER X, AND IT HAD A PROPOSAL THAT WAS GOING TO CHANGE ROUTERS CLEAR AND. SOME PEOPLE IN THE INDUSTRY PUSHED BACK AND SAID IT WOULD ADD A LOT OF RISK THE WAY FTX HAD LAID IT OUT, WHICH WOULD HAVE GIVEN THEM A LOT MORE UNILATERAL AUTHORITY ON THE BACKEND. SOME INDUSTRY VETERANS SAID THIS IS NOT A GREAT IDEA. IT WAS NOT APPROVED, BUT THEY CAME SCARILY CLOSE TO BEING EVEN FURTHER EMBEDDED INTO THE FINANCIAL MACHINERY OF THE REST OF MORE TRADITIONAL FINANCIAL MARKETS. THERE WAS AMBITION. ED:
WE'RE JUST SEEING ON OUR SCREEN THE CHAOS OF THE LAST SEVEN DAYS. IT IS ASTONISHING TO RELIVE IT BECAUSE IT HAS BEEN SO QUICK. WE HAVE LEARNED A LOT ABOUT SBF, ABOUT FTX'S ROLE IN THE SYSTEM. I DON'T KNOW HOW IT RAN ITSELF
AS A BUSINESS. ANNIE: THE WAY IT RAN AS A BUSINESS IS KIND OF SURPRISING A LOT OF PEOPLE. IT WAS KNOWN FOR REALLY COMING OUT AND SAYING THAT THEY HAD VERY SOPHISTICATED SYSTEMS TO MANAGE RISK, BUT AT THE SAME TIME, WHAT REALLY KIND OF EXPLODED INTO THE PUBLIC EYE IN THE PAST WEEK IS THAT THERE WAS REALLY NO DIVISION AT ALL BETWEEN HIS PROPRIETARY TRADING FIRM -- BASICALLY HIS HEDGE OR FAMILY OFFICE -- AND THIS EXCHANGE HE WAS RUNNING, WHICH TOOK IN CUSTOMER DEPOSITS. SO BASICALLY YOU HAVE THIS CO-MINGLING OF FUNDS THAT ANYONE IN TRADITIONAL FINANCIAL MARKETS WOULD SAY IS A HUGE RED FLAG AND CAN LEAD TO ALL KINDS OF INHERENT RISKS OF IMPLOSION'S, AND THAT IS EXACTLY WHAT WE HAVE SEEN HAPPENING. THAT IS EXACTLY WHAT WE SAW HAPPENING WITH FTX AND NOW THE CHAOS IS SPREADING. CAROLINE:
THERE IS A HEALTHY DOSE OF SCHADENFREUDE AT THE MOMENT, PARTICULARLY AMONGST TRADITIONAL FINANCE. THE FIA CONFERENCE IN CHICAGO HAD TO SCRUB OUT THE NAME OF ONE OF ITS LEAD BENEFACTORS, WHICH WAS GOING TO BE FTX. HOW MUCH SHOCK IS THERE THAT RETAIL INVESTORS ARE LEFT CARRYING THE BAG? THAT IS SO PAINFUL. THAT IS ALWAYS THE CASE. THE SO-CALLED OLD GUARD OF
TRADITIONAL FINANCE WERE SO DUPED BY THIS. ANNIE: IT IS A GOOD POINT. WE WERE LOOKING AROUND THE FIA CONFERENCE, WHICH WAS SUPPOSED TO BE SPONSORED AT LEAST IN PART BY FTX. IT SHOWS HOW EASY IT IS TO
EMBED WITH THE REST OF THE FINANCIAL INDUSTRY. I THINK PART OF WHAT IS EMERGING ABOUT SBF IS THAT HE HAD THIS DEMEANOR THAT HE WAS A TOTALLY OPEN BOOK, TOTALLY HONEST WITH PEOPLE, THERE TO ANSWER QUESTIONS AND MIX AND MINGLE WITH THE REST OF THE INDUSTRY. AND WHAT IS COMING TO LIGHT IS THAT IT WAS A VERY DIFFERENT PICTURE, AND HE WAS NOT TELLING THE TRUTH ABOUT HOW HIS COMPANY OPERATED. BUT JUST THE SHEER EXPOSURE TO TRADITIONAL FINANCE AND THE PEOPLE WHO KEEP THE MARKET PLUMBING -- HE CONNED A LOT OF PEOPLE WHO ARE VERY SOPHISTICATED, BUT NOT ALL. THERE ARE PLENTY WHO PUSHED BACK STRIDENTLY AGAINST, FOR EXAMPLE, THAT FUTURES IDEA. CAROLINE: YOUR DEEP DIVE IN THIS STORY HAS BEEN REMARKABLE. THE STORY OF THE WEEK IS A MUST
READ, AS IS THIS LATEST BIG TAKE ON THE BLOOMBERG TERMINAL. MEANWHILE, COMING UP, ACCORDING TO THE FBI, CHINA'S GOVERNMENT COULD USE TIKTOK TO CONTROL DATA OR SOFTWARE. WE HAVE THE TIKTOK CEO RESPONSE. CAROLINE: TIKTOK'S CEO SAYS PROJECT TEXAS WILL BOLSTER SECURITY IN THE U.S. BY RING FENCING DATA IN A PARTNERSHIP WITH ORACLE. IN A CONVERSATION IN SINGAPORE,
HE ADDRESSED NATIONAL SECURITY CONCERNS ABOUT THE CHINESE-OWNED VIDEO APP, RAISED BY THE FBI. >> FOR MANY TECH COMPANIES, ONE OF THE LARGEST TEAMS YOU WILL HAVE IS YOUR TRUST AND SAFETY TEAM, WHICH IS NOT ONLY THE PEOPLE WHO DESIGN POLICIES, BUT THE PEOPLE WHO DO CONTENT MODERATION AND PROTECTING THE PLATFORM, MAKING SURE THE CONTENT IS SAFE. THAT IS AN INVESTMENT I THINK IS DEFINITELY WORTHWHILE IF YOU WANT TO KEEP THE PLATFORM VERY SAFE. >> HOW MANY PEOPLE DO YOU HAVE IN CONTENT MODERATION? >> THOUSANDS. >> YOU ARE IN A UNIQUE POSITION. YOU HAVE A CHINA-BASED OWNER. YOU HAVE A VERY BIG BUSINESS IN AMERICA.
THERE IS A LOT TO NAVIGATE. THE PREVIOUS ADMINISTRATION TRIED TO FORCE YOUR SALE. MARCO RUBIO, THEY WANT TO BE ON YOU. FBI DIRECTOR CHRIS WRAY SAYS HE IS EXTERNALLY CONCERNED ABOUT YOUR APP. THIS COMES IN THE MIDDLE OF A SECURITY REVIEW IN AMERICA. ARE YOU A LITTLE BIT NERVOUS
ABOUT YOUR FUTURE? >> THE FIRST THING I WOULD SAY TO ALL THE REPORTS IS THAT WE CLEARLY PAY A LOT OF ATTENTION, AND NATIONAL SECURITY CONCERNS ARE CONCERNS WE TAKE EXTREMELY SERIOUSLY. AS WE HAVE DISCUSSED IN THE PAST, WE HAVE HAD DISCUSSIONS WITH THE U.S. GOVERNMENT, AND IF YOU SAW THE FBI DIRECTOR'S COMMENTS IN THE SINGAPORE TIMES, HE MADE COMMENTS THAT THEY ARE WORKING THROUGH THEIR PROCESS AS WELL. I AM VERY CONFIDENT -- IT IS CONFIDENTIAL, SO I CANNOT TALK ABOUT THE DETAILS. I AM VERY CONFIDENT THAT
THROUGH THE DETAILED DISCUSSIONS WE ARE GOING TO HAVE, WE WILL COME UP WITH A SOLUTION THAT WILL REASONABLY ADDRESS THE NATIONAL SECURITY CONCERNS THAT THE POLICYMAKERS HAVE. ED: LET'S CONTINUE THE CONVERSATION WITH TECH EDITOR SARAH FRIER. WHAT IS PROJECT TEXAS, AND WHY EVEN DO A PROJECT TEXAS? SARAH: IT IS A WAY FOR TIKTOK TO REMAIN IN OPERATION IN THE U.S. UNDER THE TRUMP ADMINISTRATION, WE GOING TO BE BANNED.
THEY WERE GOING TO BE FORCED TO SELL TO A U.S. COMPANY. THAT IS NOW UNDER LESS URGENT BUT STILL SIGNIFICANT REVIEW. CAN WE KEEP TIKTOK AVAILABLE TO U.S. CONSUMERS? HOW DO WE DO THAT? WHAT KIND OF GUIDELINES TO WE HAVE TO PUT AROUND IT? HOW DO WE MAKE SURE THE DATA IS PROTECTED SO THAT ONLY THOSE IN THE U.S. CAN SEE IT?
WHAT WAS INTERESTING TO ME FROM HIS COMMENTS IS IT SOUNDS LIKE IT WILL NOT BE BASED ON NATIONALITY. IT WILL BE BASED ON LOCATION. CAROLINE: I LIKE THAT FOCUS TALKING ABOUT HOW NO CONSUMER INTERNET COMPANY ORGANIZES DATA BY NATIONALITY.
WE NEED GEOGRAPHIC FOCUS TO ENSURE SECURITY. THAT IS GOING TO BE A TALL ORDER. WE HAD MUCH IN TERMS OF THE PARTNERSHIP BETWEEN ORACLE AND TIKTOK? SARAH: WE HAVE NOT.
IT IS NOT CLEAR THAT IT WOULD EVEN BE POSSIBLE TO FULLY PROTECT ALL THAT DATA, AND DO IT NOT JUST WITH THE DATA GOING FORWARD, BUT DATA IN THE PAST. TIKTOK ALREADY HAS MANY MILLIONS IF NOT BILLIONS OF USERS WHO ARE CREATING DATA NOW THAT IS GOING TO BE ENTANGLED WITH EVERYTHING THAT IS HAPPENING BACK IN CHINA. ENGINEERS ARE IN THEIR HEADQUARTERS THERE. I THINK IT IS GOING TO BE A
PRETTY IMPOSSIBLE TASK. AND IF THEY FIND IT TO BE IMPOSSIBLE, COULD THEY STILL BE BANNED, LIMITED IN HOW THEY REACH CONSUMERS? AND WHAT COULD BE LIMITED ABOUT THEIR GROWTH IN THE U.S.? I THINK IT IS GOOD THAT THEY ARE CONFIDENT ABOUT AN AGREEMENT THEY ARE GOING TO REACH. I THINK THE U.S. GOVERNMENT WOULD LIKE TO CONTINUE TO HAVE TIKTOK AVAILABLE TO U.S. CONSUMERS.
BUT IF THEY SEE NATIONAL SECURITY CONCERNS, IT IS GOING TO BE VERY DIFFICULT. ED: WE CONTINUED TO ASK OUR AUDIENCE WHAT THEY THINK AND WE ARE ALWAYS SHOCKED BY HOW BIG TIKTOK IS IN THE UNITED STATES AND AROUND THE WORLD. WE ASKED OUR AUDIENCE HOW CONCERNED ARE THEY ABOUT THEIR DATA IN PARTICULAR, OR TIKTOK'S CONTROL OF THEIR DATA.
A TWITTER PAUL, 60% OF THE RESPONDENTS SAY YES, WE ARE CONCERNED ABOUT TIKTOK CONTROL OF U.S. USER DATA. WHAT HAS THE BEEN FROM TIKTOK'S USER BASE AND PERHAPS FROM POLITICAL PARTIES WITHIN THE UNITED STATES? SARAH: I THINK PEOPLE ARE CONCERNED ABOUT TIKTOK HAVING ACCESS TO THEIR DATA JUST LIKE THEY ARE CONCERNED ABOUT FACEBOOK HAVING ACCESS. I THINK DATA PRIVACY HAS BECOME ONE OF THE TOP ISSUES FOR CONSUMERS OVER THE LAST FEW YEARS AFTER ALL OF THE DIFFERENT PRIVACY LAPSES FROM CONSUMER APPS. I AM NOT SURPRISED THAT IS HOW
PEOPLE RESPONDED TO THE POLL. WHAT I THINK MIGHT BE A LITTLE MORE DIFFICULT FOR U.S. CONSUMERS TO UNDERSTAND IS WHAT ARE THEY MEANT TO DO ABOUT IT, RIGHT? TIKTOK HAS BECOME A PLACE FOR PEOPLE TO GO AND BLOW OFF SOME STEAM, WATCH FUNNY VIDEOS, BE ENTERTAINED. I KNOW THAT IS THE CASE FOR ME.
IF THEY ARE TOLD THERE MAY BE SOME VERY SERIOUS POTENTIAL NATIONAL SECURITY CONCERNS WITH DATA, WHAT IS THAT GOING TO CHANGE ABOUT CONSUMER BEHAVIOR? AND HOW DOES THAT CHANGE WHAT U.S. ADVERTISERS DO WITH THEIR MONEY? ULTIMATELY, PEOPLE WANT TO GO WHERE THE AUDIENCE IS. IT IS SOMETHING WE HAVE SEEN OVER AND OVER. PEOPLE ARE WORRIED ABOUT THEIR DATA, BUT THEY ARE NOT SURE THEY ARE GOING TO CHANGE THEIR BEHAVIOR IN RESPONSE TO THAT. CAROLINE: THAT SHIP HAS SAILED A LITTLE BIT. TALKING ABOUT THAT IS HOW THE MONEY IS MADE IS ADVERTISING -- WE HAVE SEEN THAT EVEN THE SUCCESS OF TIKTOK HAS NOT BEEN IMMUNE TO SOME OF THE DOWNDRAFT IN THE ECONOMY AT THE MOMENT. WE KNOW THEY HAVE BEEN SLASHING
THEIR OWN OUTLOOK FOR HOW MUCH THEY WILL BE TAKING IN FROM ADVERTISING. HOW IS THE SITUATION FOR SOME OF THE COMPANIES YOU HAVE SPOKEN TO? SARAH: IT IS BLEAK FOR TIKTOK ESPECIALLY IF THEY ARE RESTRICTED BY THE U.S. THAT IS THEIR BIGGEST EXISTENTIAL THREAT RIGHT NOW. THE ADVERTISING ENVIRONMENT IS
ONE THING. THEY ARE A NEW OPTION IN A MARKET THAT META AND TWITTER AND GOOGLE ARE ALREADY SEEING STRUGGLES IN. THEY MAY GET SOME OF THE REVENUE ADVERTISERS ARE TRYING TO SPEND SOMEWHERE OTHER THAN TWITTER IN THIS MOMENT OF CHAOS. YOU HAVE SEEN A LOT OF MAJOR ADVERTISERS SAY THEY ARE GOING TO PAUSE THEIR BUDGETS AND WAIT AND SEE WHAT HAPPENS WITH ELON MUSK'S TAKEOVER. ED:
IS IT LOOKING GOOD FOR TIKTOK IN NORTH AMERICA? SARAH: I THINK BANNING TIKTOK WOULD BE EXTREMELY UNPOPULAR WITH CONSUMERS, SO I THINK THEY WOULD LIKE TO FIND A SOLUTION AND THE GOVERNMENT HAS AN INTEREST IN KEEPING THIS AN OPTION FOR U.S. CONSUMERS, IF THEY CAN FIND A WAY TO DO IT WITHOUT BREACHING NATIONAL SECURITY CONCERNS. ED: THANK YOU. COMING UP, ELON MUSK TESTIFIES
OVER HIS $55 BILLION PAY PACKAGE IN DELAWARE. MORE DETAILS NEXT. ♪ ED: TIME NOW FOR TALKING TEXT -- ELON MUSK'S HUGE TESLA PAYDAY.
MUSK SAID HE HAD NO ROLE IN SETTING HIS 2018 COMPENSATION WORTH 55 BILLION DOLLARS. IN DELAWARE, THE JUDGE WILL DECIDE IF HE SHOULD GIVE IT BACK. IT IS IN THE FORM OF STOCK OPTIONS WITH CONDITIONS ATTACHED AND WAS THE BIGGEST PAYOUT IN U.S. CORPORATE HISTORY, MORE THAN NAMES LIKE APPLE'S TIM COOK WERE PAID. THERE ARE ALSO CLAIMS THE REWARD WAS EXCESSIVE FOR A CEO LEADING MULTIPLE COMPANIES, AND SHOULD BE GIVEN BACK TO TESLA. THE SUIT ARGUED TESLA'S BOARD LACKED INDEPENDENCE WHEN AGREEING TO IT.
IN HIS TESTIMONY, MUSK SAYS HE DID NOT KNOW ABOUT THE INTERNAL REWARD PROCESS. HE SAYS MOST OF HIS TIME HAS BEEN SPENT RUNNING TESLA, WITH LESS TIME SPENT AT TESLA AND BORING CO., BUT HE SAYS HE IS NOW FOCUSED ON REORGANIZING TWITTER. HE SAYS HE RARELY TAKES TIME FOR VACATIONS AND CALLS THEM EMAIL WITH A VIEW. CAROLINE:
THAT IS KIND OF DEPRESSING. I WILL TELL YOU WHAT CAUGHT MY EYE. OF COURSE WE KNOW HOW MUCH ELON MUSK IS BEING PAID FOR THE JOBS HE CURRENTLY HAS. BUT THE TWITTER ONE, AND IN PARTICULAR THE FOCUS ON WHETHER OR NOT A BLUE CHECK MEANS ANYTHING, WHETHER OR NOT YOU ARE VERIFIED -- THAT IS BEING PUSHED TO NOVEMBER 29.
THIS RIP JIMMY FALLON -- DID YOU SEE THE HASHTAG? ED: HE IS STILL WITH US. CAROLINE: HE WANTED IT CORRECTED. HE WAS SHOCKED AND HORRIFIED. THE REPORTING SEEMS TO BE GOING THAT SOMEONE TOOK ADVANTAGE OF THE LATEST CHANGES IN TERMS OF WHO IS BONA FIDE AND WHO IS NOT, AND CHANGED HIS PROFILE WITH A LETTER SWAP, AND MENTIONED HE MIGHT HAVE PASSED, AND THE WHOLE WORLD WAS SET ALIGHT WITH WORRYING ABOUT JIMMY FALLON.
IT BECAME A JOKE, BUT ULTIMATELY THIS IS THE POWER OF TWITTER NOT WORKING AS IT SHOULD. I AM TRIPLE CHECKING EVERYTHING ON THE SOCIAL MEDIA. ED: AN ELON MUSK DID RESPOND AND SAY, FIX WHAT? COMMUNITY NOTES IS WHAT HE IS TRYING TO PUSH, COMMUNITY SOURCED FIXES TO TWITTER INACCURACIES. CAROLINE: WE CONTINUE TO KEEP WATCHING THE FALLOUT. THERE IS PLENTY MORE THAT IS GOING TO BE GOING VIRAL AND WE WILL BE ON TOP OF IT. MEANWHILE, WE ARE LEARNING
ABOUT SOME OF THE SHORTCOMINGS WHEN IT COMES TO TELEHEALTH, WHICH PROMISED EXPANSIVE HEALTH CARE FOR ANYONE WITH AN INTERNET CONNECTION. BUT DIDN'T HAVE THE RIGHT CHECKS AND BALANCES IN PLACE? WE DISCUSS. CAROLINE: SLOWLY BUT SURELY, WE ARE LEARNING ABOUT THE SHORTCOMINGS OF ONLINE MEDICAL TREATMENT AFTER THE COVID PANDEMIC SPREAD A BOOM IN TELEHEALTH DEMAND. CEREBRAL WAS AT ONE POINT THE FASTEST GROWING PROVIDER.
LAPSES IN DUE DILIGENCE LED TO OVERDOSES, TO DEATHS. ULTIMATELY, CEREBRAL WAS ILL-EQUIPPED TO TREAT SOME OF THE MOST VULNERABLE PATIENTS -- THOSE WHO DO NOT DISCLOSE SUBSTANCE USE DISORDERS. WHAT FOLLOWED IS THE OUSTER OF THE CEO AND THE PROMOTION OF A HARVARD EDUCATED PSYCHIATRIST WHO IS NOW THE CEO. HE IS JOINING ME NOW FOR AN EXCLUSIVE CONVERSATION TO DISCUSS THE PAST, THE PRESENT, AND THE FUTURE. DAVID, THANK YOU FOR YOUR TIME TODAY.
THIS IS A MOTIVE, AND I WANT TO TALK ABOUT A COMPLEX ISSUE THAT IS MENTAL HEALTH. IT IS COMPLICATED WHETHER YOU ARE A TELEHEALTH PROVIDER OR BRICKS AND MORTAR. ULTIMATELY, THESE ARE COMPLICATED CONDITIONS YOU ARE TRYING TO TREAT. HOW ARE YOU NOW LOOKING TO HAVE PEOPLE TALK ABOUT THEIR SUBSTANCE DISORDERS? HOW ARE YOU HANDLING CASES THAT HAVE AFFECTED YOU IN THE PAST, WHERE WE HAVE SEEN OVERDOSES, DEATHS, ACCORDING TO INTERNAL COMPANY RECORDS AND INTERVIEWS? >> FIRST OF ALL, THANKS FOR HAVING ME.
JUST TO GIVE A LITTLE CONTEXT HERE, MENTAL HEALTH IS REALLY BROKEN IN THE U.S.. IF YOU LOOK AT THE AVERAGE WAIT TIMES TO FIND A PSYCHIATRIST, IT RANGES TO TO THREE MONTHS, AND THE MAJORITY OF MENTAL HEALTH PROFESSIONALS DO NOT MEASURE OUTCOMES. THE CURRENT SYSTEM REALLY IS BROKEN. MOST COUNTIES IN THE COUNTRY DO NOT HAVE A SINGLE PSYCHIATRIST. WHAT WE ARE DOING WITH
TELEHEALTH IS TO PROVIDE PEOPLE WITH CARE WITHIN A COUPLE OF DAYS, TWO TO THREE DAYS ON AVERAGE, AND TO MEASURE CLINICAL OUTCOMES VERY CAREFULLY. WE HAVE A VERY ROBUST PROGRAM WHERE WE DO SCREEN FOR SUBSTANCE USE DISORDERS JUST LIKE BRICK AND MORTAR CLINICS. WE HAVE ACCESS TO URINE TALKS SCREENS TO MAKE SURE WE CAN -- U RINE TOX SCREENS TO MAKE SURE PATIENTS ARE GETTING THE OUTCOMES, AND THE VAST MAJORITY OF OUR PATIENTS DO BETTER CLINICALLY AFTER A FEW MONTHS WITH CEREBRAL. CAROLINE: THE LESSONS YOU LEARNED, THE FACT THAT YOU STOPPED PRESCRIBING ADDERALL AND RITALIN AFTER A GRAND JOURNEY -- GRAND JURY DID SUBPOENA YOU -- ARE YOU STARTING TO SEE CHANGES? DO YOU THINK OVERALL YOU HAVE LEARNED LESSONS IN TERMS OF THE WAY IN WHICH YOU PRESCRIBE AND WHO PRESCRIBES? >> WE STOPPED PRESCRIBING CONTROLLED SUBSTANCES BECAUSE WE UNDERSTAND THAT THE LAW THAT TEMPORARILY SUSPENDED THE IN PERSON REQUIREMENT WILL BE COMING BACK, AND WE WANTED TO RESPONSIBLY BE ABLE TO TAPER OFF OUR PATIENTS FROM THOSE MEDICATIONS. WE STILL DO PRESCRIBE SUBOXONE
FOR OPIATE USE DISORDER, BECAUSE THERE MAY BE AN EXCEPTION. CERTAINLY, I HAVE BEEN CONFIDENT ABOUT OUR CLINICAL PROGRAMS, WHICH ARE VERY ROBUST. WE HAVE CLINICAL GUIDELINES USED BY MILLIONS OF DOCTORS ACROSS THE WORLD AS THE NORTHSTAR, AND WE HAVE MULTIPLE SUPPORT SYSTEMS FOR OUR CLINICIANS. FOR EXAMPLE, AT ANY POINT, WITHIN MINUTES, OUR CLIENTS CAN GET A SECOND OPINION BY A PSYCHIATRIST FOR A COMPLEX CASE. WE HAVE UNLIMITED VISITS FOR OUR PATIENTS WHEN IT COMES TO PRESCRIBING. AND WE MEASURE THESE OUTCOMES AND GIVE THE DATA BACK TO OUR CLINICIANS SO THEY CAN CONTINUE TO PROVIDE HIGH-QUALITY CARE. ED:
THANKS FOR JOINING US, DAVID. YOU HAVE BEEN CHARTING A NEW COURSE AS CEO SINCE YOU TOOK OVER THAT ROLE IN MAY. YOU WERE CHIEF MEDICAL OFFICER FOR THE COMPANY SINCE FEBRUARY OF 2021. A LOT OF THE STUFF WE DISCUSS IN THIS STORY AND OTHER STORIES, CONCERNS OF NURSE PRACTITIONERS, ABOUT PRESCRIBING OF CONTROLLED SUBSTANCES AND OTHERWISE -- YOU WERE NOT IN THE CHIEF EXECUTIVE'S CHAIR, BUT YOU WERE THE TOP MEDICAL OFFICER FOR THE COMPANY. AS WE LOOK AT SOME OF THE
THINGS WE TALKED ABOUT IN THIS AND PREVIOUS STORIES, TO WHAT EXTENT DO YOU FEEL YOU BEAR RESPONSIBILITY FOR HOW THINGS WERE MANAGED DURING THAT PERIOD OF TIME? DAVID: I FEEL VERY CONFIDENT IN OUR CLINICAL PROGRAMS. MY MANDATE WAS TO IMPROVE CLINICAL SAFETY. WE SET UP SOME OF THE MOST ROBUST CLINICAL QUALITY AND SAFETY TEAMS OF ANY TELEHEALTH COMPANY. WE HAVE A DEDICATED CONICAL QUALITY TEAM AND A DEDICATED SAFETY TEAM, EACH RUN BY A DEDICATED PSYCHIATRIST. THOSE TEAMS HAVE ONE MANDATE ONLY, AND THAT IS TO RUN QUALITY AND SAFETY EFFORTS.
FOR EXAMPLE, WE JUST LAUNCHED A FEW MONTHS AGO A SUICIDE PREVENTION PROGRAM THAT BASICALLY PROACTIVELY LOOKS AT THE MESSAGES WE GET FROM OUR PATIENTS. WE GET THOUSANDS OF THEM EVERY DAY, AND SOME OF THEM HAVE SUICIDAL CONTENT AND SAY I WANT TO KILL MYSELF. I DON'T WANT TO GO ON ANYMORE. WE CAN DETECT THAT USING
MACHINE LEARNING AND PROACTIVELY REACH OUT TO THOSE PATIENTS WITHIN FIVE TO 10 MINUTES. WE DON'T CARE IF IT IS 3:00 P.M. IN THE AFTERNOON OR 3:00 A.M. IN THE MORNING. THIS SERVICE IS AVAILABLE TO
ALL OF OUR PATIENTS, 24/SEVEN. WE DO NOT CHARGE EXTRA. IT IS JUST THE RIGHT THING TO DO. THIS IS ONE EXAMPLE OF HOW WE ARE USING DATA SCIENCE AND MACHINE LEARNING TO MAKE CARE MUCH SAFER AND BETTER RELATIVE TO THE STANDARD OF CARE TODAY. ED: WHEN WE TALKED TO YOU IN ADVANCE OF THE STORY YOU SAID THAT DUE TO PATIENT PRIVACY RULES YOU COULD NOT COMMENT ON INDIVIDUAL CASES.
I HOPE YOU HAVE BEEN ABLE TO READ THE STORY. IS THIS THE SORT OF CARE THAT PATIENTS COMING TO CEREBRAL SHOULD BE EXPECTING TO RECEIVE, THE SORTS OF CASES OUTLINED IN BLOOMBERG'S MOST RECENT REPORTING? DAVID: I HAVE BEEN VERY CONFIDENT IN OUR CLINICAL PROGRAMS FROM THE VERY BEGINNING. MY CLOSE FRIENDS USE THE SERVICE. THEY HAVE HAD POSITIVE TESTIMONIALS.
IT IS SOMETHING WE REALLY BELIEVE IS ABOVE THE STANDARD OF CARE. CAROLINE: ULTIMATELY, THIS IS A HIGH-GROWTH STARTUP ENVIRONMENT THAT CEREBRAL WAS IN. DO YOU THINK THAT IS ULTIMATELY THE RIGHT ENVIRONMENT FOR TELEHEALTH, PARTICULARLY FOR MENTAL TELEHEALTH PROVISION OVERALL? DAVID: THAT IS A GOOD QUESTION. I WILL GIVE YOU A STORY AND THIS IS EMBLEMATIC, A SAMPLE OF SOMETHING WE SEE ALL THE TIME. WE SEE THIS PATIENT CALLED BILL. HE RECEIVED HIS THERAPY
APPOINTMENT AND HIS THERAPIST SAW THAT HE WAS IN HIS PICKUP TRUCK BY THE SIDE OF THE ROAD. HIS THERAPIST ASKED, WHY ARE YOU IN YOUR CAR? BILL SAID, I'M NOT READY TO TELL MY WIFE AND MY KIDS THAT I HAVE BAD DEPRESSION AND I DO NOT HAVE A PRIVATE OFFICE, SO I NEED YOU TO MEET ME WHERE I AM, BECAUSE I AM TIRED OF MEETING DOCTORS WHERE YOU ARE. THAT IS WHAT WE'RE DOING. OUR MISSION IS TO DEMARCUS EYES
ACCESS TO HIGH-QUALITY MENTAL HEALTH CARE. WE ARE REACHING POPULATIONS THAT HAVE HISTORICALLY BEEN CUT OFF TO THE MENTAL HEALTH -- FROM THE MENTAL HEALTH SYSTEM. THEY DO NOT HAVE ANYTHING ELSE. WE WANT TO BE THERE FOR THESE POPULATIONS. THAT IS MY FOCUS, GOING FORWARD. CALEB: YOU TOLD US CEREBRAL HAS BEEN DIVERTING SOME OF ITS MARKETING SPENDING TO CLINICAL CARE AND OTHER THINGS THAT SUPPORT THE MENTAL HEALTH PROCESS. THROUGHOUT 2021 AND SOME OF EARLY 2020 A BIG PART OF CEREBRAL'S MARKETING EFFORTS WAS THE GYMNAST SIMONE BILES, WHO BROUGHT MENTAL HEALTH CARE TO THE FOREFRONT OF HER OWN STORY WHEN SHE STOPPED COMPETING IN THE OLYMPICS.
IS THAT PARTNERSHIP STILL ACTIVE? DAVID: WE REALLY SUPPORT SIMONE. HER CONTRIBUTION TO MENTAL HEALTH IS IMMEASURABLE. IT REALLY IS VERY SIGNIFICANT. IT IS NOT JUST HER. IT IS WHAT SHE HAS BEEN ABLE TO SHOW OUR PATIENTS. SOME PATIENTS COME TO US AND VERY DIRECTLY ATTRIBUTE THEIR REACHING OUT TO SEEK CARE BECAUSE OF SIMONE. IT IS NOT JUST SIMONE. IT IS HER MOTHER AS WELL THAT HAS BEEN VERY, VERY SUPPORTIVE.
WE ARE VERY APPRECIATIVE OF THE PARTNERSHIP. CAROLINE: YOU TELL THAT ANECDOTAL STORY ABOUT BILL AND SAY HE COULD NOT HAVE GOTTEN CARE ANYWHERE ELSE, BUT THERE ARE COMPETITORS OUT THERE, AND WHEN WE LOOK AT YOUR NUMBERS, LOOKING AT BLOOMBERG INTELLIGENCE DATA, DOWNLOADS HAVE GONE TO 10,000 IN OCTOBER WHEN THEY WERE AT ABOUT 78,000 IN APRIL. HOW DO YOU RECOVER YOUR OWN VALUATION, WHICH -- YOU SURGED BY ABOUT 90%, INTERNAL VALUATIONS. DAVID: WE HAVE MADE A CONSCIOUS EFFORT TO DECREASE MARKETING SO WE CAN GROW SUSTAINABLY. WE ARE CONFIDENT IN OUR
BUSINESS PRODUCT. THE DEMAND FOR HIGH-QUALITY MENTAL HEALTH CARE GROSSLY OUTSTRIPS THE SUPPLY AND WE ARE SEEING VERY POSITIVE SIGNALS IN TERMS OF OUR PARTNERSHIPS WITH LARGE INSURANCE COMPANIES AND PRIMARY CARE CLINICS, AND OTHER WAYS TO GET PATIENTS THE CARE THEY NEED. CAROLINE: THANK YOU FOR YOUR TIME TODAY. AND OF COURSE OUR BLOOMBERG INVESTIGATIVE REPORTER. THANK YOU FOR JOINING US. WE WISH YOU WELL. COMING UP, THE FTX CONTAGION MAKES ITS WAY INTO THE WINKLEVOSS GEMINI BROKERAGE, A LENDING PLATFORM THEY WERE BRINGING THROUGH THAT PARTNERSHIP. >> FTX IS ONE OF THESE ABSOLUTE TRAGEDIES IN FINANCIAL MARKETS.
PEOPLE ARE GOING TO LOSE BILLIONS OF DOLLARS, AND THAT UNDERMINES TRUST IN ALL FINANCIAL MARKETS. >> WHAT SHOULD THE INDUSTRY DO TO SURVIVE? MY OPINION IS MORE COLLABORATION. >> FTX -- THE OTHER BANKRUPTCY -- IN THE MORNING, THERE IS A NEW REPORT THAT BLOCK-FI MAY FILE BANKRUPTCY. >> I THINK IT IS QUITE CONTAINED RIGHT NOW AND THE BROADER MARKET IS STILL SEEN A LOT OF LIQUIDITY.
I THINK THE AUTHORITIES WILL BE THERE TO ADDRESS ANY ISSUES IN CRYPTO. ED: SOME OF THE VOICES FROM BLOOMBERG'S NEW ECONOMY FORUM IN SINGAPORE, REACTING TO CRYPTO CONTAGION. LET'S BRING IN SONALI BASAK. CRYPTO CONTAGION -- GIVE US THE LATEST REPORTING ON THE FALLOUT FROM FTX SPREADING. SONALI: THERE ARE A FEW THINGS, AND WHETHER THIS IS TIED TO WITHDRAWALS AND OTHER THINGS -- YOU HAVE NOW BLOCK-FI SAYING THEY COULD ANNOUNCE A BANKRUPTCY FILING IN DAYS. YOU HAVE THE ISSUE OF WITHDRAWALS YOU SEE OVER IN GENESIS GLOBAL CAPITAL, WHICH IS ASSOCIATED WITH THE GENESIS FAMILY. REMEMBER, GENESIS IS A HUGE
COUNTERPARTY IN THIS BUSINESS. PEOPLE ARE WATCHING CLOSELY AND ANNOUNCING WHETHER THEY HAVE BEEN AFFECTED OR NOT. YOU HAVE GEMINI EARN, WHICH IS TIED TO THE LENDING BUSINESS. THAT BUSINESS ALSO PAUSING WITHDRAWALS. A LOT OF QUESTIONS ABOUT HOW CUSTOMERS CAN GET THEIR MONEY BACK, WHAT WITHDRAWALS LOOK LIKE, AND HOW FAR THIS CONTAGION WILL SPREAD NOT ONLY AMONG FTX CUSTOMERS, BUT THE CUSTOMERS OF THE COMPANIES I HAVE NAMED AT OTHER EXCHANGES.
ED: FTX, GENESIS -- YOU HEARD OTHER NAMES. WHAT IS YOUR REACTION TO THIS IDEA OF CONTAGION? WHAT DOES GENESIS REPRESENT OF WHAT IS HAPPENING IN THIS INDUSTRY? >> I THINK IN THE LAST TWO YEARS WE SAW THIS EXTREME GROWTH IN CENTRALIZED LENDERS LIKE GENESIS, BLOCKFI, CELSIUS. THEY GAVE UNSECURED LOANS TO MARKET MAKERS, FOR THE MOST PART, FROM THE BORROWING SIDE. THEN THEY TOOK DEPOSITS FROM CONSUMERS OR INSTITUTIONS IN THE CASE OF GENESIS. AND DURING KIND OF THE ZERO INTEREST RATE WORLD, WE SAW THE EXTENSION OF CREDIT TO PARTIES THAT OTHERWISE WERE PERHAPS NOT REALLY CREDIT WORTHY, WITH VERY LITTLE COLLATERAL REQUIREMENTS AT ALL. ON PAPER, THIS PRODUCED A HUGE
NUMBER OF PROFITS FOR DECENTRALIZED LENDERS. HOWEVER, AS RATES TIGHTENED, THOSE LENDERS WERE UNABLE TO KEEP THE CAPITAL THEY NEEDED TO ISSUE THESE LOANS, AND THE PEOPLE WHO THEY LENT TO HAVE GONE EXTREMELY LONG CRYPTOCURRENCIES, ESPECIALLY ONES THAT COLLAPSED, SUCH AS LUNA. THAT LED TO THE EXTREME CREDIT CRUSH WE ARE SEEING NOW. ANYWAY, THE CENTRALIZED LENDERS
STARTED ALL THE PROBLEMS, AND I GUESS IT IS FITTING THEY ARE SORT OF THE END OF THE CONTAGION. DEBBIE: HOW FAR -- SONALI: HOW FAR DOES THE CONTAGION GO NOW THAT YOU HAVE NEW FIRMS SAYING THEY ARE PAUSING WITHDRAWALS? WHO MIGHT THOSE COUNTERPARTIES BE? >> THE INTERESTING THING IS THE MAJORITY OF THE LENDERS WERE MARKET MAKING FIRMS LIKE JANE STREET, AS WELL AS THESE ALAMEDA TYPE OF MARKET MAKERS, AND I THINK THE REAL QUESTION OF CONTAGION REALLY BOILS DOWN TO HOW WELL DID THE CENTRALIZED LENDERS CHOOSE THE LOAN TO VALUES, HOW MUCH THEY LENT RELATIVE TO THE COLLATERAL, AND WHAT COLLATERAL DO THEY HOLD? IN THE CASE OF ALAMEDA, WE SAW WHAT I WOULD CALL VERY SIMILAR TO ENRON TYPES OF COLLATERAL, WHERE THERE IS COLLATERAL WHOSE REAL LIQUID MARKET CAP IS $50 MILLION TO $60 MILLION. THAT IS THE PROBLEM. SONALI: I AM CURIOUS IF WE CAN LOOK PAST WHAT IS HAPPENING DAY-TO-DAY, LOOK FORWARD SIX MONTHS INTO THE FUTURE.
WHAT DOES THE INDUSTRY LOOK LIKE? >> I THINK THE INDUSTRY MOVES TOWARD DECENTRALIZED FINANCE. YOU COULD EFFECTIVELY THINK OF IT AS CUSTOMERS CAN ALWAYS WITHDRAW, AND THEY WITHDRAW AHEAD OF SHAREHOLDERS. THE IDEA THAT WITHDRAWALS ARE PRIORITIZED OVER SHAREHOLDERS SORT OF ENSURES THAT YOU DON'T HAVE THESE KIND OF CREDIT CRUNCHES BUILT IN THE SYSTEM. THAT MEANS YOU ARE MORE COLLATERALIZED. CLEARLY, THE LESS COLLATERALIZED PARTS OF THE SYSTEM ALL BLEW UP AT THE SAME TIME. I THINK WE ARE TRENDING TOWARD A MORE COLLATERALIZED WORLD IN CRYPTO IN THE NEXT ONE TO TWO YEARS UNLESS RATES GO DOWN AGAIN. SONALI:
IF YOU LOOK AT THE DISLOCATIONS IN CERTAIN ASSETS -- IF YOU LOOK AT THE YIELDS ON STAKE TO ETHER -- STAKED ETHER, BITCOIN FUTURES -- WHAT ARE THE PRICING DISLOCATIONS THAT WORRY YOU? >> GBTC DISCOUNTS TO FAIR VALUE AT AROUND -40% -- I SUSPECT THERE IS QUITE A BIT OF RELATION BETWEEN THE GENESIS HALTING AND THAT PREMIUM BLOWING OUT. THEY ARE BOTH RUN BY THE SAME PARENT COMPANY, THE SAME CURRENCY GROUP. THERE IS A LOT OF CLOSE RELATIONSHIPS BETWEEN THEM.
THREE ARROWS CAPITAL WOULD USE THE CAPITAL WITH GENESIS TO BORROW AGAINST IT, AND GENESIS IS NOW SITTING ON A 40% LOSS. I THINK THE MAIN QUESTION OF THE REST OF THE CREDIT CRISIS IS WHAT COLLATERAL DO PEOPLE ACTUALLY HAVE. IN DEFI, EVERYONE KNOWS WHAT COLLATERAL EVERYONE HAS, AND THAT IS THE DIFFERENCE. ED: COMING UP, AFTER MULTIPLE DELAYS, NASA'S TEST MISSION TO THE MOON IS FINALLY UNDERWAY. THERE SHE GOES. THIS IS BLOOMBERG. LEFT OFF.
♪ CAROLINE: WE ARE GOING VIRAL AND INTERGALACTIC. AFTER YEARS OF DELAYS AND BILLIONS IN EXTRA COSTS, NASA'S ARTEMIS MISSION TO THE MOON AND BACK -- IT'S MOST POWERFUL ROCKET IS ORBITING THE MOON AND RETURNING SAFELY BACK TO EARTH. THE MULTIMISSION PROGRAM IS FOCUSED ON SENDING ASTRONAUTS, INCLUDING THE FIRST WOMAN AND FIRST PERSON OF COLOR, BACK TO THE MOON'S SURFACE, BY AS EARLY AS 2025. TO SEE IT TAKE OFF IN THE
MIDDLE OF THE NIGHT -- LAUREN, WHAT DID YOU MAKE OF THIS STEP? IT SEEMS A LONG TIME COMING. >> FOR A SPACE REPORTER LIKE MYSELF, YOU HAVE TO UNDERSTAND THE SURREAL NATURE OF WATCHING THIS ROCKET LAUNCH. I THINK I HAVE BEEN COVERING THIS ROCKET SINCE I STARTED REPORTING ON SPACE EIGHT YEARS AGO. IT FINALLY LAUNCHED. THERE WERE MOMENTS DURING THE COUNTDOWN WHEN WE WERE UNSURE IF IT WAS GOING TO TAKE OFF LAST NIGHT OR THIS MORNING, BUT IT FINALLY DID. IT WAS A SIGHT TO BEHOLD. ED:
I FELT WHAT YOU FELT, LAUREN. I FELT THE RUMBLE OF THE ROCKET. I'VE -- I COMPLETELY GET WHAT YOU ARE SAYING. THERE IS A MISSION. TALK TO US ABOUT WHAT ORION IS GOING TO BE DOING, THE CAPITAL ITSELF. I THINK WE HAVE A MAP OF THE MISSION IT IS CONDUCTING.
LAUREN: FOREMOST, THIS IS A TEST FLIGHT. THE MAIN OBJECTIVE OF ARTEMIS ONE WAS TO DEBUT THE MASSIVE NEW ROCKET SPACE LAUNCH SYSTEM AND THE ORION CREW CAPSULE TOGETHER ON A FLIGHT, AND SHOW THEY CAN ACTUALLY SEND A MISSION AROUND THE MOON SAFELY AND RETURNING HOME TO EARTH. AN HOUR AND A HALF AFTER LAUNCH THIS MORNING -- I KEEP TRAINED TO SAY LAST NIGHT, BUT IT WAS THIS MORNING -- THEY CONDUCTED SOMETHING KNOWN AS A TRANSLATOR INJECTION BURN. IT IS ON ITS WAY TO THE MOON. IN THE NEXT WEEK OR SO, IT WILL INSERT ITSELF INTO LUNAR ORBIT. IT WILL STAY THERE FOR ABOUT A WEEK. THEN IT WILL COME BACK HOME AND
IT WILL ATTEMPT TO SPLASH BACK DOWN INTO THE PACIFIC OCEAN, INTACT, WITH ITS HEATSHIELD REACHING UP TO 10,000 DEGREES FAHRENHEIT. THAT IS GOING TO BE A BIG TASK. WE CAN SEND PEOPLE TO SPACE, BUT WE HAVE TO GET THEM BACK SAFELY. THIS WAS JUST A TEST TO SEE IF WE CAN GET SAFELY INTO SPACE. CAROLINE: FRUSTRATING TO MANY, ARTEMIS 2 WILL NOT GO UP FOR A COUPLE OF YEARS. LAUREN: THAT IS THE DOWNSIDE OF THIS PROGRAM.
IT WILL TAKE A LOT BETWEEN THIS MISSION AND THE NEXT ONE. NASA IS STILL TARGETING THE FIRST LANDING AS EARLY AS 2025, BUT THERE IS A LOT OF SKEPTICISM ABOUT WHETHER THAT WILL HAPPEN OR NOT. THERE IS A LOT OF TIME BETWEEN THESE MISSIONS. IT WAS A FANTASTIC SITE, SO I WILL DEFINITELY BE PATIENTLY WAITING FOR THE NEXT ONE. ED: IT IS GOOD TO SEE YOU. CAROLINE: THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. THURSDAY, WE WILL DEEP DIVE ON THE CISCO EARNINGS WHO WERE BRINGING US EARLIER. ED: AND DON'T FORGET TO CHECK OUT
OUR PODCAST. YOU CAN FIND IT ON THE TERMINAL AS WELL AS ONLINE ON APPLE, SPOTIFY, AND IPOD RADIO. ♪
2022-11-18 13:42
