'Bloomberg Technology' Full Show (12/05/2022)
>> I AM CAROLINE HYDE AND BLOOMBERG'S WORLD HEADQUARTERS IN NEW YORK. I AM ED LUDLOW IN SAN FRANCISCO AND THIS IS "BLOOMBERG TECHNOLOGY." >> SLACK CEO LATEST ALEVE ON THE -- TO LEAVE ON THE HEELS OF THE CO-CEO. >> MICROSOFT IS WILLING TO FIGHT FOR ITS $69 BILLION TAKEOVER OF ACTIVISION BLIZZARD. WE WILL DISCUSS WHAT IS THE FIRST MAJOR TEST FOR FDC COMMISSION -- FTC COMMISSIONER LENA.
>> NEXT YEAR COULD BE ANOTHER BRUTAL ONE FOR THAT COIN COULD GO AS LOW AS $5,000. FIRST, YOU KNOW I LOVE THE MACRO. TODAY IT WAS A PRESSURE STORY ON STOCKS, S&P OF 1.8%, IS A STORY OF MACRO A STORY OF THE FEDERAL RESERVE. A STORY OF GOOD NEWS BEING BAD NEWS. YOU HAD SERVICE DATA FOR THE
U.S. THAT IS WARRING STRONG -- ROARING STRONG. THERE IS EXCESS DEMAND WE SEE IN THE SYSTEM IN NINE STATES, THE DOLLAR UP .8%. MOVING UP, CHINA GOT A BIT INCOMING 9% MOVE FOR THE HONG KONG TECH FOCUSED INDEX. THIS IS A FIVE DAY WINNING STREAK. WE SEE MORE BULLISHNESS OR CHINESE STOCKS, MORE HOPES THERE WILL BE A -- FOR CHINESE STOCKS MORE HOPES THAT THERE'LL BE A CURTAILMENT IN THE COVID PROTOCOLS. >> YOU ARE HEARING ABOUT CITIES LIKE SHANGHAI, AND OTHERS EASING TESTING REQUIREMENTS SO THE ADR IS A BOOST. ACTIVISION BLIZZARD
UP .8% FOLLOWING THE REPORT THAT MICROSOFT IS GOING TO FIGHT IN A REVELATORY CONTEXT TO GET --REGULATORY CONTEXT TO GET THE DEAL DONE. THEY WILL BE CUTTING PRODUCTION AT A CHINESE PLANT, WE WILL DIG THAT -- DIG INTO THAT LATER IN THE SHOW. THIS IS A STOCK AT ITS LOW AS LEVELS SINCE MARCH 2020, IT IS NOT JUST AN EXECUTIVE DEPARTURE WE HAVE A CONVERSATION AROUND GROWTH. THIS IS A COMPANY THAT FOR VERY
LONG TIME HAD DECENT DOUBLE DIGIT GROWTH. THAT HAS CHANGE, SO HAS A LEADERSHIP AT THE TOP OF THE COMPANY. >> THAT IS WHY FROM BLOOMBERG INTELLIGENCE, THE GREAT NOTE FROM COMING -- COMING FROM OUR COLLEAGUE, TALKING ABOUT THE LACK OF ORGANIC GROWTH. IF THE RESTRUCTURING CAN BE A HIT OR A MISS. WE TALKED ABOUT THE HAD TO SALESFORCE, ONCE AGAIN THE ANNOUNCEMENT, CO-CEO BRETT TAYLOR ONLY LAST WEEK, NOW A COUPLE MORE ANNOUNCED BEFORE HIM. WE GET THE LATEST, SLACK CEO, AND MARK, ALL EXITING STAGE LEFT. WE ARE BREAKING IT ALL DOWN.
THAT IS QUITE THE EXODUS. QUITE THE REVOLVING DOOR. WHY ARE WE GETTING ANY SORT OF FEELING OF WHAT IS MAKING THEM LEAVE? GUEST: ON THE SLACK SIDE, ONE THING PEOPLE ARE EXPECTING, SALESFORCE SPENT A LOT OF MONEY ON ACQUISITION. $26 BILLION FOR SLACK, AND THEY ARE WORKING TO INTEGRATED INTO THE PRODUCT PORTFOLIO.
THEY ARE NOT SAYING WE ARE GETTING RID OF STUART BECAUSE OF THIS, BUT WE SAW THIS HAPPEN AT ANOTHER MEGA ACQUISITION. MUCH OF THE LEADERSHIP LEFT. THREE TOP EXECUTIVES IN THE SAME DAY IS RESTRUCTURING. >> IS ALL THE FOCUS ON SOFTWARE AND CLOUD? WE TALKED TO ONE OF THE CIOS OF BLACKROCK, LISTEN TO HOW HE SEES THE SECTOR.
>> YOU ARE SEEING GROWTH SLOW, BUT YOU ARE STILL SEEING POSITIVE GROWTH COME PARTICULARLY SOFTWARE. I THINK IT IS A VERY GOOD SECTOR, THERE ARE POCKETS IN THE SECTOR WHERE EVALUATIONS GOT OUT OF WHACK. THOSE HAVE COME DOWN. I AM OPTIMISTIC ON TECHNOLOGY. >> WHAT HE JUST DESCRIBED THEY ARE PRETTY MUCH DESCRIBES SALESFORCE, DOESN'T IT? A COMPANY THAT HAS SLOWED DOWN ON THE TOP LINE. THEY HAVE TO PROVE THAT THEY WILL CHANGE THAT SOMEHOW. GUEST: THERE IS AN INTERESTING DEBATE
BETWEEN INVESTORS. SOME PEOPLE WANT TO SEE SALESFORCE BE A GROWTH COMPANY, MAKE BIG ACQUISITIONS, KEEP THAT TOP LINE HEALTHY. A LOT OF PEOPLE ARE SAYING YOU NEED TO FOCUS ON THE MARGINS COMEY SPENT 50 BILLION ON ACQUISITIONS IN THE LAST COUPLE OF YEARS YOU NEED TO BOOST THE PROFITS. THEY ARE IN A TOUGH SPOT WHEN YOU DO NOT CONSIDER THE EFFECT THEY ARE LOSING FAMOUS TALENT.
A TWEET WENT VIRAL, SAYING IF YOU WENT -- HAD BRETT TAYLOR INTO COMING FOR YOURSELF IN A VOLCANO TO KEEP HIM. THEY COULD NOT KEEP HIM. >> THAT IS WHAT WE HEAR FROM BLOOMBERG INTELLIGENCE THAT THERE IS MORE PRESSURE THAT THERE IS A BENCH OF FUTURE LEADERS THAT CAN DRIVE ORGANIC GROWTH. IT CANNOT BE ONE MAN. WHAT OF THE PEOPLE THAT STEP UP? GUEST: THE PERSON REPLACING STORE, IS LYDIA JONES. A LEADER FROM THE CORE SALESFORCE PRODUCTS. SHOWING YOU THAT THEY ARE TRYING TO INTEGRATE IT INTO THE WIDER SALESFORCE, A MORE TRADITIONAL WAY OF DOING THINGS.
WHEN BRENT LEFT CAMELOT PEOPLE SAID STUART WAS THE 1 -- LEFT A LOT OF PEOPLE SAID STUART WAS THE ONE TO REPLACE THEM. FIVE DAYS LATER STUART LEAVES. IT IS NOT A GOOD SITUATION. >> WE WILL KEEP TRACKING THAT ONE, LET'S MOVE ON TO CHINA AND TO TESLA. THE EV MAKER PLANS TO LOWER. . PRODUCTION IN THE SHANGHAI FACTORY THAT ACCORDING TO SOURCES. IT COULD BE LATEST SIGN THE DEMAND IN CHINA IS NOT MEETING EXPECTATION. TESLA SHARES CLOSING DOWN 6.4%
IN NEW YORK, THE BIGGEST DROP IN TWO WEEKS. SETH GOLDSTEIN HERE WITH US FOR MORE INSIGHT. IN THE MONTH OF NOVEMBER HASLETT HAD A RECORD MONTH FOR DOMESTIC -- TESLA HAD A RECORD MONTH FOR DOMESTIC DELIVERIES. IF THESE REPORTS ARE ACCURATE THEY'RE LOOKING AT THEIR NEAR-TERM DEMAND AND PULLING BACK. WHAT IS YOUR READ? GUEST: THEY STARTED OFF THE QUARTER VERY WELL. THE FIRST TWO MONTHS OF THE QUARTER THEY WERE SELLING AT PRODUCTION BASED ON THE NEW EXPANDED CAPACITY AT THE SHANGHAI PLANT. THEN YOU SEE AT THE SAME TIME
THE NEW ENERGY VEHICLE MARKET IN CHINA, LOW GROWTH, AND DUE TO POTENTIAL MACRO HEADWINDS WE COULD SEE A FALLOFF. TESLA TAKES A LOOK SO THEY CAN ADJUST PRODUCTION TO NOT BE CAUGHT OFF WITH A BUNCH OF EXPRESS -- EXCESS INVENTORY AT THE END OF THE YEAR. >> TESLA DID NOT COMMENT ON THE REPORT. LOCAL MEDIA IN CHINA SAID IT WAS FALSE. CHINA IS AN INTERESTING MARKET, THERE ARE MANY MORE DOMESTIC LAYERS OFFERING MORE MODELS THAN IN THE UNITED STATES OR IN EUROPE. WHAT LEVER CAN TESLA USE FOR
PRICING WHEN IT COMES TO DEMAND AND GETTING MORE DEMAND BUILT UP IN THE MARKET? GUEST: WE HAVE SEEN TESLA AND OTHER CHINESE AUTOMAKERS CUT PRICES IN RECENT MONTH. AT THICKET CAN HAPPEN. WHEN YOU -- THINK IT CAN HAPPEN. WHEN YOU LOOK AT TESLA AND CHINA THEY DO NOT HAVE THE COMPETITIVE ADVANTAGE AS THEY DO IN THE U.S. AND EUROPE. THEY DO NOT HAVE THE CHARGING NETWORK, PROPRIETARY BATTERY TECHNOLOGY, THEY DO NOT HAVE THE TECHNOLOGICAL ADVANCES TO THE EXTENT THEY DO ELSEWHERE. THEY ARE STILL THOUGHT OF AS A REPUTABLE AND HIGH QUALITY NAME THEY DO NOT HAVE AS BIG OF A LEAD IN CHINA AS THEY DO ELSEWHERE. THAT IS YC LOWER LONG-TERM SALES GROWTH IN THE CHINESE MARKET.
>> WHEN I FIRST SAW THE HEADLINE , I THOUGHT THIS WAS ANOTHER COMPANY HIT BY SUPPLY CHAIN ISSUES, THE SUPPLY SIDE, NOT THE DEMAND SIDE. TO THAT END, HAVE THEY BEEN ABLE TO RAMP IN SHANGHAI AS THEY WANTED TO? WILL THEY REMAINED COMMITTED TO THIS SPACE? GUEST: I THINK SO THERE IS A LOW COST OF PRESCRIBED -- PRODUCTION, THEY ALSO USE IT TO EXPORT. THAT WILL BE ONE OF THE KEY FACTORIES EVEN AS THEY RAMP UP BERLIN AND AUSTIN TO THE LONG-TERM GROWTH PLANS. >> TALK TO US ABOUT WHETHER SHANGHAI CAN BE USEFUL TO THEM AS A EXPORTING HUB MORE GENERALLY ARE HOW MUCH OF THIS IS TO SERVE THE LOCAL UNITY -- COMMUNITY? HOW MUCH THEY SHIPPED TO THE EUROPE AND U.S.?
IS IT A GOOD CHOICE TO SHIP FROM SHANGHAI? GUEST: I THINK SO BECAUSE IT IS A LOWER COST OF PRODUCTION. CHINA IS THE LOWEST -- LARGEST AUTO MARKET, IT IS IMPORTANT TO BE THERE TO SELL TO THE CHINESE COMMUNITY -- CONSUMERS. THEY ARE TRYING TO GROW THEIR PRESENCE THROUGHOUT THE REST OF ASIA, MIDDLE EAST, AND AFRICA. THE SHANGHAI FACTORY ALLOWS THEM TO DO SO AND FOCUS ON THOSE MARKETS EVEN AS THEY RAMP UP BERLIN TO SERVE THE EUROPEAN MARKETS. ED: I WANT TO GET YOUR TAKE ON THE SEMITRUCK EVENT THEY HELD RECENTLY. THE REASON IT CAME TO MIND, IN THE INVESTOR DECK OF LAST QUARTER AND THE TABLE OF DIFFERENT PRODUCTS PRODUCED IN THE WORLD. SHANGHAI'S MODEL Y AND 3.
IT GOT ME THINKING ABOUT HOW THEY MANAGE ALL OF THIS. PRIORITIZE RESOURCES WITH SEMITRUCK. PARTICULARLY WITH RESOURCES AS IT RELATES TO BATTERIES. DO YOU THINK THEY CAN PULL THAT OFF? GUEST: I THINK THEY CAN, THEY PRODUCE DIFFERENT BATTERIES BASED ON THE DIFFERENT FACTORIES AS WELL. THE BATTERIES IN CHINA, ARE DIFFERENT THAN WHAT THEY PRODUCE FOR THE SEMITRUCK OR THE MODEL Y IN THE U.S. OR THE CYBER TRUCK. TESLA HAS BEEN VERY GOOD AT RAW MATERIALS AND INVENTORY MANAGEMENT. I RESPECT THAT TO CONTINUE EVEN
AS THEY START TO MAKE MULTIPLE DIFFERENT TYPES OF BATTERIES THROUGHOUT THEIR ENTIRE COMPANY. >> I THINK, OVERALL, LARGELY, TALK TO US ABOUT YOUR PERSPECTIVE ON CHINA AND THE GLOBAL SUPPLY CHAIN. WHETHER OR NOT WE ARE SEEING COMPANIES DECIDE IT IS LESS VIABLE AND LESS DESIRABLE TO BE THERE? GUEST: I DO THINK WHEN WE LOOK AT THE ELECTRIC VEHICLE SUPPLY CHAIN IT WILL BE IMPORTANT FOR U.S.
COMPANIES TO DECOUPLE FROM CHINA. THE INFLATION REDUCTION ACT REQUIRES COMPANIES, ESPECIALLY FOR BATTERIES IN THE RAW MATERIAL SOURCING TO GET THEM FROM THE U.S. OR FREE-TRADE AGREEMENT PARTNERS. FOR COMPANIES LIKE TESLA IS THIS IMPORTANT TO HAVE TWO DIFFERENT SUPPLY CHAINS. ONE ON THE U.S. AND ONE ON CHINA. THAT WILL ALLOW THEM TO MAXIMIZE THE INCENTIVES AVAILABLE TO CONSUMERS AND TAKE ADVANTAGE OF THE SUBSIDIES. ED:
WE WILL LEAVE IT THERE, MORNINGSTAR EQUITIES STRATEGIST SETH GOLDSTEIN, THEY VERY MUCH. WE WILL BRING YOU THE VERY LATEST OF THE MICROSOFT ACTIVISION DEAL AND OTHER ANTITRUST CASES TO WATCH. AS WE HEAD TO BREAK, I WANT TO TAKE A LOOK AT VODAFONE, HE TRIED TO MAKE SOME DEALS. THE STOCK PRICE HAS BEEN SLIDING, SLIDING, SLIDING.
HE HAS NOT BEEN ABLE TO HALT IT. REALLY INTERESTING, THIS NAME IS FAMILIAR TO US. THE INTERIM CHIEF FINANCIAL OFFICER, WILL DO THE JOB ON THE INTERIM BASIS WHILE THEY LOOK FOR A NEW CEO. VODAFONE. >> LOOK AT A DOSE -- IT. NO COMMITMENT TO FOR WHO WILL BE TAKING IT. PAYING AN AMOUNT ON A 12 MONTH CONTRACT AS WELL, THIS IS A SIGNIFICANT MOVE FOR THIS COMPANY. THEY HAVE BEEN TRYING TO MAKE
DEALS IN ITALY, SPAIN, MANEUVER AND BECOME LEANER. MORE OF A FOCUS BUSINESS. YET WE SEE IMPLICATION OF A 44% EROSION OF SHARE PRICES IN THE COMING YEAR. HE DID MAKE QUITE A DEAL, SPINNING OUT THAT THIS IS TO BONDAGE TOWERS HE RAISED 16 BILLION EUROS, THAT IS WHAT THE DEAL IS VALUED AT. STILL HE HAS TO BID HER WELL. -- FAREWELL.
ED: HE CUT THE DIVIDEND, AFTER SAYING IT WAS AN AFFORDABLE THING TO DO. LOOK AT THE REACTION. >> WE ARE GLOBAL, NOT THAT WE ARE TOTALLY BRITISH. FROM NEW YORK, FROM SAN FRANCISCO, THIS IS BLOOMBERG. CAROLINE: LET'S TALK ABOUT M&A. ACTIVISION AND BLIZZARD ROSE AT ONE POINT IN TRADING, AFTER BLOOMBERG REPORTED THAT MICROSOFT IS READY TO FIGHT FOR THE $69 BILLION ACQUISITION OF THE VIDEO GAMING COMPANY.
THAT IS, IF, THE U.S. FEDERAL TRADE COMMISSION FILES A LAWSUIT TO BLOCK THE DEAL. THEY HAVE NOT YET. LET'S BRING IN SARAH, FOR MORE ON THIS.
WE WAIT WITH BATED BREATH AS TO IF THE U.S. WILL DO IT. WE UNDERSTAND THE EU, ALSO FOCUSING IN. THE U.K. AS WELL. HOW MUCH IS REGULATION AND PUSHBACK ON THIS DEAL ACROSS THE U.S.? GUEST: TODAY MICROSOFT'S PRESIDENT HAD AN OP-ED IN THE WALL STREET JOURNAL AT 1:00 CLAIMING THE PROBE COMPETITIVE REASONS FOR THE MERGER -- PRO COMPETITIVE REASONS FOR THE MERGER. THIS WILL BE A BATTLE IN D.C.. THERE WAS TALK OF A LIKELY LAWSUIT. YOU DO NEED VOTES FROM THE
COMMISSIONER BEFORE IT GOES OUT. WITH INTERNATIONAL TO THE U.K. IN EU IT IS PROBABLE IT WILL GO FORWARD. IT REMINDS ME A LOT OF THE AT&T TIME WARNER MERGER LAWSUIT A FEW YEARS AGO. ED: THIS IS INTERESTING, WE HAVE TO
THINK ABOUT WHO MIGHT OBJECT TO THIS. ONE NAME IS SONY. I AM LOOKING AT THE MARKET SHARE DATA. MICROSOFT HAD THE SECOND-HIGHEST MARKET SHARE DATA FOR 2021, SONY SLIGHTLY MORE THAN THAT. WHY WOULD SONY BE UPSET ABOUT THE IDEA OF MARKET -- MICROSOFT BUYING ACTIVISION? >> SONY IS IN THE NUMBER ONE MICROS -- MARKET POSITION AT 40%, YOU HAVE MICROSOFT AND THEN NINTENDO AT 24%.
THERE IS A CONCERN THAT MICROSOFT WILL HAVE A COMPETITIVE EDGE IN CLOUD. THAT IS AN ARGUMENT YOU SEE FLOATED AROUND. CAROLINE: I AM INTERESTED. LET'S TALK ABOUT WHAT IS THE INTEREST OF THE USER HERE. WE WENT TO OUR FOLLOWERS, OUR AUDIENCE ON TWITTER, WE WANT TO GIVE THE MAYPOLE.
'S -- GIVE THEM A POLL. IF THEY CARE IF MICROSOFT IS OWNED -- IF ACTIVISION IS OWNED BY MICROSOFT ARE NOT. 82%, SAY YES, FROM A CONSUMER POINT, WILL THEY MAKE ENOUGH CONCESSIONS TO ENSURE AT NO POINT, ME, THE GAMER SUFFERS FROM THIS. GUEST: I THINK CONSUMERS WOULD BE WORRIED THAT ACCESS WOULD BE CLOSED ON SONY'S PLAYSTATION, EVEN MICROSOFT SAYS THEY ARE NOT IN A POSITION TO STOP CALL OF DUTY ACCESS ON THE PLAYSTATION. ARGUMENTS OF FORECLOSURE THAT MICROSOFT WOULD HOLD BACK CERTAIN GAMES SEEM TO BE WAKE.
I THINK THE GAME PLAYERS -- KNOW THAT COME IF THERE IS DEMAND FOR CALL OF DUTY, MICROSOFT AND ACTIVISION WANT TO MEET THAT DEMAND. CAROLINE: WE WANT TO DIG IN. THIS IS NOT HAPPENING IN ISOLATION. EARLIER IN THE YEAR NVIDIA ARM THAT DEAL WAS KIBOSH, META-WILL BE ARGUING THE CASE OF WHY IT WILL BE ABLE TO PURCHASE THE HOT FITNESS VR APP. WHY DO YOU THINK WE ARE SEEING FIERCER PUSHBACK ON THE M&A DEALS? GUEST: YOU HAVE THE CONTACTS THAT THE CHAIR IS COMING AT THESE MERGERS -- CONTEXT THAT THE CHAIR IS COMING AT THESE MERGERS WITH -- THE FTC DROPPED CLAIMS IN OCTOBER AND IT BROUGHT THE LAWSUIT AGAINST THE INTERNAL STAFF RECOMMENDATIONS. YOU SEE A LOT OF MORE AGGRESSIVE ENFORCEMENT ACTIONS. WE STILL HAVE TO SEE WHAT HAPPENS IN COURT. ED: WE REPORTED FRIDAY THAT
MICROSOFT IS READY TO THE FIGHT ACCORDING TO SOURCES. WHAT DOES THE FIGHT LOOK LIKE? HOW MANY KEY STAGES LEFT TO GO BEFORE THE DEAL CLOSES? GUEST: YOU WILL NEED TO SEE THE FTC VOTE ON THE ACTION. THEN YOU WILL SEE THE COMPLAINT IN COURT.
THEN, FROM A REFERENCE POINT, I SAID EARLIER THIS REMINDS ME OF THE AT&T TIME WARNER FIGHT A FEW YEARS AGO. IN THE END, THERE WAS SO MUCH YOUR MARKETING -- HERE AMONG THAT TV CHANNELS WILL NOT BE OFFERED TO OTHER NETWORKS. FOUR YEARS LATER AT&T WANT TO SELL OFF THE TIME WARNER ASSETS. THERE IS NO GUARANTEE A MERGER WOULD CREATE ANTICOMPETITIVE EFFECTS. WE WILL HAVE TO SEE WHAT HAPPENS IN TRIAL AND IN THE PUBLIC EYE. >> I KNOW YOU ARE NOT A MERGER ARBITRAGE SPECIALIST. WHAT IS
YOUR ASSESSMENT OF THE LIKELIHOOD OF THIS DEAL GOING THROUGH? GUEST: IT IS HARD TO SAY WITH THE POLITICS. I THINK A LOT OF IT IS DEPENDING ON WHAT THE FTC IS SAYING. WHAT CLAIMS IT BRINGS. MAYBE THEY ARE GEARING UP FOR A LONG TRIAL IN COURT. AT THE END IF YOU SEE WHAT HAPPENED WITH AT&T AND TIME WARNER, THEY MIGHT BE -- THERE MIGHT BE CONGRESSIONAL HEARINGS AND BACK-AND-FORTH. IT MIGHT GO THROUGH. YOU DID NOT KNOW ABOUT THE U.K., EU, AND THE FIVE OTHER COUNTRIES LOOKING INTO THIS MERGER. TO BE DETERMINED.
ED: SARAH, SENIOR FELLOW AT THE TECHNOLOGY POLICY INSTITUTE AT D.C.. I THINK IS FASCINATING, THE FTC, WHEN TO ACT AND WHERE TO ACT. THE NEXT THING IS META AS AN EXAMPLE. MY QUESTION IS, DO IT IN-HOUSE OR BY SOMEONE? THAT IS THE QUESTION EVERYONE IS FACING NOW. CAROLINE: ORGANIC OR INORGANIC, PARTICULARLY FOR COMPETITION IN A NASCENT SPACE LIKE THE METAVERSE. WE SAW FRIDAY, META ARGUING WE SHOULD NOT HAVE REGULATION IN THE METAVERSE BECAUSE YOU MIGHT CHOKE OFF REGULATION -- INNOVATION. THAT IS THE ARGUMENT IN CRYPTO
AS WELL. NOW THE ARGUMENTS COME FORTH, IF THEY WILL BE STIFLING COMPETITION BY PURCHASING THE FITNESS COMPANY. THE FTC HAS BEEN BUSY, THEY ALSO ACKNOWLEDGE THERE WILL BE LOOKING INTO THE ADVERTISING AROUND CRYPTO. THEY ARE A BUSY SET OF PEOPLE. ED: IT IS A CASE OF PICKING BATTLES AND THEY HAVE A LOT ON THE DESK RIGHT NOW. COMING UP WILL BRING THE LATEST NEWS OF GLOBAL VENTURE CAPITAL. THIS IS BLOOMBERG.
♪ ED: TIME NOW FOR TALKING TECH. WE ARE TAKING A LOOK AT THE WORLD OF STARTUPS AND GLOBAL VENTURE CAPITAL. NEW RESEARCH CO. OFFERED BY FEDERAL RESERVE OFFICER LISA COOK, SHOWING THAT BLACK STARTUPS ARE RAISING ONE THIRD AS VENTURE CAPITAL IN THE FIRST FIVE YEARS OF LIFE IN THE OTHER -- AS OTHER INDUSTRIES IN THE SAME -- PART OF IT HAS TO DO WITH BLACK FIRMS HAVING SMALLER FOUNDING TEAMS AND COMING FROM DIFFERENT SCHOOLS THAN BC LEADERS. BRETT HARRISON IS RAISING MONEY FOR A CRYPTO START UP. FUNDING -- ACCORDING TO SOURCES. IT COULD BE A -- THE IDEA COULD
BE TO CREATE SOFTWARE FOR CRYPTO TRADERS -- BOTH CENTRALIZED AND DECENTRALIZED. THE BROOKLYN-BASED COFFEE CHAIN IS IN TALKS TO RAISE A NEW FUNDING ROUND, COULD BE VALUED AROUND $200 MILLION. AIMING TO TOP ITS LAST ROUND. CAROLINE:
200 MILLION FOR A COFFEE CHAIN? WHY? ED: EXPENSIVE CUP OF COFFEE. CAROLINE: HAVE YOU BEEN TO IT IN BROOKLYN? WHAT IS THE INFLATION RATE ON THAT? COMING UP WILL BE TALKING ABOUT NEW YORK, AIRBNB, OTHER SHORT-TERM RENTAL PLATFORMS BEING CHALLENGED BY MAJOR CITIES. CAROLINE: WELCOME BACK TO "BLOOMBERG TECHNOLOGY," I AM CAROLINE HYDE TO NEW YORK ALONGSIDE ED LUDLOW IN SAN FRANCISCO. WE HAVE A TALK ABOUT NEW YORK CITY'S STRICT RULES OF AIRBNB. THE HOST ARE ABOUT TO GET AN EVEN MORE STRINGENT PILL TO SWALLOW. THEY MET WITH PROPERTY OWNERS
TO DISCUSS CHANGES TO SHORT-TERM RENTAL LAWS IN THE COUNTRY -- AT CITY. ONE OF THE MOST RESTRICTIVE. MICHAEL IS HERE, TALK TO US ABOUT WHAT IS FUELING THIS DEBATE AT THE MOMENT. IT IS ALREADY PRETTY TOUGH TO RENT OUT YOUR APARTMENT ON AIRBNB HOW MUCH TOUGHER CAN IT GET? GUEST: NOW YOU HAVE TO HAVE AN OFFICIAL LICENSE. UNDER THE CURRENT PROPOSED
REGULATION YOU HAVE TO APPLY FOR A LICENSE. IT WOULD BE $145, YOU HAVE TO SUBMIT A DETAILED DIAGRAM OF THE APARTMENT, THE FIRE ESCAPES, EXITS, DOORS AND THINGS LIKE THAT. YOU WOULD HAVE TO INCLUDE ALL THE NAMES OF THE PEOPLE THAT LIVE IN THE HOUSEHOLD WITH YOU AND THEIR RELATIONSHIP TO YOU. ON TOP OF THAT YOU HAVE TO SEND IN VERIFYING DETAILS. UTILITY BILL, A GOVERNMENT ID, SOMETHING ELSE WITH YOUR NAME AND ADDRESS TO PROVE YOU LIVE THERE. AIRBNB WILL NOT BE ABLE TO PROCESS TRANSACTIONS FOR ANY OF THESE PROPERTIES THAT ARE NOT ON THE APPROVED LIST. CAROLINE:
THAT IS QUITE A SET OF RULES. TALK TO US ABOUT THE DISCUSSION POINTS. WHEN THEY'RE PUTTING IT TO HOSTS, AND INDEED PEOPLE THAT WANT TO USE THE APP WHEN THEY COME TO VISIT, WHAT DO THEY THINK ABOUT IT? GUEST: THIS HAS BEEN GOING ON FOR A YEAR OR TWO STARTING UNDER THE DE BLASIO ADMINISTRATION AND GOING INTO EFFECT UNDER THE ADAMS ADMINISTRATION. WE ARE IN THIS COMMENT PERIOD, TODAY THERE WAS A MEETING WHERE THEY HOSTS WERE TALKING WITH THE OFFICE OF SPECIAL ENFORCEMENT THAT HOST THE RULES. IT WAS A SPIRITED DISCUSSION BETWEEN TENANTS THAT WERE UPSET THAT AIRBNB'S HAD TAKEN OVER THEIR NEIGHBORHOOD, AND PEOPLE WHO LIVED IN BROOKLYN AND QUEENS WHO SAY WE HAVE A SINGLE-FAMILY HOME AND WE WANT TO RENT OUT ONE ROOM IN OUR PROPERTY.
AND EARN INCOME ON THAT. THERE WAS LOTS OF COMMENTS AND DEBATE THAT WAS GOING ON. IT SHOWS THE STRAIN IN THE COMMUNITIES WHEN YOU HAVE A START UP ECONOMY IN A TIGHT HOUSING MARKET. ED: NEW YORK CITY IS ONE MARKET FOR AIRBNB. IT IS AN IMPORTANT MARKET. ONE OF THE BIGGEST DOMESTICALLY IN THE U.S..
IS THIS ISSUE BEING REPLICATED IN OTHER CITIES AROUND AMERICA? WHAT KIND OF CHALLENGE JUST AIRBNB FACE OUTSIDE THE NEW YORK AREA? GUEST: THERE IS REGULATION PRETTY MUCH EVERYWHERE YOU GO, THAT IS THE LONG AND SHORT OF IT. IN BIG BEAR CALIFORNIA, A REALLY POPULAR SHORT-TERM RENTAL DESTINATION THERE WERE PROPOSALS ON THE BALLOT THERE AND THEY WERE VOTED DOWN. IN SANTA MONICA, CALIFORNIA, THERE WAS LEGISLATION THAT THE NEW YORK LEGISLATION WAS MODELED OFF OF.
IN LEGISLATION -- BOSTON, IT IS IN BIG TOWNS, RESORTS, CITIES IT IS EVERYWHERE. IT IS NOT JUST A U.S. ISSUE IT IS IN BARCELONA, PARIS, ALL SORTS OF REGULATION TO REGULATE SHORT-TERM RENTALS. IT IS TO ADDRESS HOUSING SUPPLY AND MAKING SURE PEOPLE CAN FIND ADEQUATE HOUSING. ED: MY MIND GOES TO THE HOSTS COMING AFTER HIM WHAT AIRBNB IS. IT IS A PLATFORM WHERE YOU SHARE ACCESS FOR YOUR HOME.
MANY ACROSS AMERICA ARE FEELING THE PINCH OF INFLATION. WHAT YOU HEAR FROM THE HOSTS THEMSELVES? THEY MUST BE ARGUING, I WANT TO RENT OUT THIS PROPERTY IS A MEANS OF GETTING INCOME. GUEST: THAT IS THAT, WHEN YOU THINK OF HOW EXPENSIVE IT IS, GIVEN THE INFLATION AND THE COST OF EVERYTHING. A LOT OF HOST SAY THIS IS THE ONLY WAY TO AFFORD A MORTGAGE PAYMENT, AFFORD BILLS, SOME OF THE PEOPLE THAT SPOKE WERE RETIREES. THEY SAID THEIR PENSION AND SOCIAL SECURITY DID NOT HAVE ENOUGH BANDWIDTH TO MAKE ALL THE WAY.
THEY USE THIS AS A WAY TO SUPPLEMENT INCOME. AIRBNB RECOGNIZES THIS IS A WAY PEOPLE CAN ESSENTIALLY MAKE EXTRA MONEY. THEY HAVE LEANED INTO THIS GOING INTO NEXT YEAR. THEY HAVE MADE IT EASIER TO GET HOSTS ONLINE. THEY THINK IF THE ECONOMY CONTINUES TO US OFTEN, AND NEED INCOME, THEY WILL LIST THEIR HOME ON AIRBNB. I AM NOT SURE WHAT TO THINK OF
THAT. YOU HAVE TO THINK ABOUT, DO PEOPLE WANT TO TRAVEL IF THE ECONOMY GETS SOFT, RIGHT? HOW MUCH DISCRETIONARY SPENDING WILL PEOPLE HAVE? WILL THEY GO TRAVEL IF THE MONEY WILL NOT GO AS FAR AND GET TOUGH? ED: BLOOMBERG'S MICHAEL TOBIN REPORTING ON AIRBNB. ELON MUSK SAYS APPLE HAS FULLY RESUMED ADVERTISING ON TWITTER. THE BILLIONAIRE REVEALED THE NEWS DURING A TWITTER SPACES CONVERSATION ON THE WEEKEND. THEY ADDED THAT THEY ARE THE LARGEST ADVERTISER ON THE SOCIAL MEDIA NETWORK.
LAST WEEK HE BLESSED -- BLASTED FOR PULLING ADS AND THREATENING TO PULL FROM THE APP STORE. CAROLINE: COMING UP WE ARE LOOK AT THE FTC AGAIN, NOT ONLY IS IT SEEING IF ACTIVISION SHOULD BE BOUGHT BY MEGA SOFT ARE ALSO PROBING CRYPTO FIRMS OVER THE ADVERTISEMENTS. SHE WILL BE SHARING SOME OF HER 2023 CRYPTO EXPECTATIONS.
THIS IS BLOOMBERG. ♪ ED: MORE THAT NEWS FOR THE CRYPTO SPACE. THE FTC IS INVESTIGATING CRYPTO FIRMS OVER MISLEADING ADVERTISING. THE JUDGE WILL DECIDE IF LENDER CELSIUS OWES IT USERS CRYPTO.
THEY SAY THE PLANNED SPAC LISTING WITH CONCORDE HAS BEEN SCRAPPED. HANNAH COVERS ALL THINGS CRYPTO FOR US LET'S START WITH THE FTC INVESTIGATION. GUEST: WE KNOW THEY ARE INVESTIGATING MULTIPLE FIRMS AT THIS POINT. IT IS UNCLEAR WHO SPECIFICALLY THEY ARE LOOKING AT. THERE ARE NOT A LOT OF ISSUES WITH ADVERTISING IN CRYPTO. WITH FTX, INVESTORS ARE SUING THEM OVER FALSE ADVERTISING.
FTX HAD MULTIPLE HIGH-PROFILE ADS AND SPONSORSHIPS WITH TOM BRADY AND STEPH CURRY. THERE ARE PRETTY BIG NAMES INVOLVED WITH THIS. ED: ABOUT TALK ABOUT CIRCLE AS WELL. THIS IS BEEN IN THE WORKS FOR QUITE SOME TIME. MARKET CONDITIONS HAS CHANGED. WHAT DID CIRCLE SAY ABOUT WHY THIS HAPPENED. I READ IN THE STORY THAT NEITHER SIDE ACTIVELY TERMINATED THE DEAL. GUEST:
IT IS BASICALLY, THEY HAVE SAID TO US, IT HAS BEEN MUTUAL. NEITHER SIDE MADE A MOVE TO TERMINATE THE DEAL. THERE IS NO BAD BLOOD BETWEEN THEM.
THERE IS STILL A HUGE GOAL FOR CIRCLE TO GO PUBLIC EVENTUALLY. WE KNOW THIS WAS A $9 BILLION DEAL. CRYPTO PRICES HAVE DECLINED SIGNIFICANTLY SINCE THEY AMENDED THE DEAL TERMS IN FEBRUARY. IT IS AN INTERESTING THING TO SEE IN THE WAKE OF FTX THAT THEY MADE THIS ANNOUNCEMENT. THERE HAS BEEN A ROUT OF THE SPAC MARKET. VONNIE: CAROLINE: CAROLINE: LET'S GO TO THE THIRD STORY, A LOT TO DO WITH A FEDERAL JUDGE DECIDING WHO OWNS TOKENS THAT YOU LEND OUT OR GAINING INTEREST ON.
THIS IS CELSIUS, DEPOSITORS PUT MONEY INTO CELSIUS EXPECTING THAT THE MONEY WAS THEIRS AND THEY ARE OWNING -- EARNING INTEREST ON IT. IN THIS BANKRUPTCY HEARING IT COULD POTENTIALLY NOT BE THEIRS. GUEST: CELSIUS IS ASKING TO SELL CRYPTO ON IT BALANCE SHEET FOR $18 MILLION. THE JUDGE IS TRYING TO DECIDE IF THEY ACTUALLY OWN THAT CRYPTO OR IF IT BELONGS TO USERS. IF USERS FORFEITED THE CRYPTO IN EXCHANGE FOR GAINING INTEREST. THE JUDGE SAYS HE WILL DECIDE ON IT AS EARLY AS NEXT WEEK. IT IS STILL UP IN THE AIR.
IT SHOWS HOW CRYPTO REGULATIONS ARE EVOLVING. THIS IS A NEW FRONTIER FOR MANY LEGAL EXPERTS. CAROLINE: A NEW FRONTIER WITH A BALROG OF BANKRUPTCY -- BARRAGE OF BANKRUPTCIES. DOES THIS MATTER FOR THE OTHER PLAYERS? WE SEE HOLDINGS THAT THEY HAVE BEING ARGUED THIS WAY? GUEST: THIS IS A MONUMENTAL THING FOR CRYPTO LENDERS. IT COULD SET NEW PRESIDENT GOING FORWARD. WE DO HAVE A LOT OF LENDERS PLAYING IN THE SPACE.
WE HAVE A LOT OF LENDERS TOUCHED BY FTX CONTAGION. I AM THINKING BLOCKFI AND GENESIS. IT WILL BE INTERESTING TO SEE WHAT HAPPENS NEXT AND WHAT THE JUDGE RULES. CAROLINE: I THINK IT IS ALWAYS INTERESTING TO SEE WHAT HAPPENS NEXT IN THE WORLD OF CRYPTO. WE WANT TO DIG INTO THE ANALYSIS OF THIS AND BRING IN ANOTHER FLAVOR OF TODAY. ONE OF THE MAIN HEADLINES THAT CAUGHT MY ATTENTION WAS BRUTAL WHEN IT COMES TO HOW MUCH FURTHER WE SEE CRYPTO FALL. PARTICULARLY CRYPTO, THEY HAVE
BEEN LOOKING AT -- PARTICULARLY BITCOIN, THEY'VE BEEN LOOKING AT WORST-CASE SCENARIOS HE SAYS IT COULD DROP ANOTHER 70% TO JUST $5,000. ONE OF THE MORE EXTREME OUTCOMES. HE IS ALSO TALKING ABOUT THE MEN SWINGING FROM THE DIGITAL DOLLAR TO THE OLD-FASHIONED GOLD DEPENDING ON THE FED RATE HIKE CYCLE.
HEAD OF STRATEGY OVER AT CORNED SHARE -- COIN SHARE, IT IS ALWAYS GREAT TO HAVE YOUR VOICE ON OUR PROGRAMMING. TALK TO US ABOUT YOUR OUTLOOK FOR MORE THE -- FOR THE MORE RESILIENT CRYPTO. BITCOIN HAS FALLEN HARD COME IN THIS TUMBLED OF THE LAST MONTH OR SO MANY HAVE TALKED ABOUT THE RESILIENCE IT HAS FOUND. COULD IT SINK FURTHER TO 5000? GUEST: THE BIG THING TO LOOK AT, OBVIOUSLY AFTER THE FALLOUT OF THREE CARO -- THREE ARROWS CAPITAL, USING BITCOIN AS CLASSICAL -- COLLATERAL WE DID SEE A SELLOFF. IT HAS STAYED TO THE 15 TO 20 RANGE. WE THINK IT WILL STAY THERE. EVEN WITH THE FTX COLLAPSE WE
DID NOT SEE A HUGE SELLOFF IN BITCOIN. THE COLLATERAL UTILIZED BY FTX TO GUARANTEE AND SECURE LOANS IS PRIMARILY FTT AND OTHER CRYPTOCURRENCIES. WHO ARE THE BIG SELLERS OF CRYPTO -- BITCOIN? THERE IS NEVER A DULL DAY IN CRYPTO, THERE ARE NOT A LOT OF BIG SELLERS OF BITCOIN LEFT. CAROLINE: WHAT ABOUT TRADING ACTIVITY IN GENERAL? THERE WAS THE HEADLINE OF FINANCE SEEING AN INCREASE AFTER THE FTX IMPLOSION. GIVEN THE TREMORS IN THE MARKET AND THE FLURRY OF VOLATILITY AND ACTIVITY, ONE OF THE MAIN PLACES MOVE STAGE LEFT. WHAT IS ACTIVITY LOOKING LIKE FROM AN ACTIVITY'S PERSPECTIVE? >> IT IS REPORTED ON IN COINBASE PUBLIC EARNINGS, IT IS A GREAT RESOURCE FOR GATHERING PUBLIC INFORMATION THAT IS AUDITED. THAT IS WHY PUBLICLY LISTED
COMPANIES. ARE SO IMPORTANT FOR THE SPACE THAT IS WHY WE ARE EXCITED ABOUT CIRCLE FINDING A ROUTE TO PUBLIC MARKET. ON THE INSTITUTIONAL SIDE, WE HAVE NOT SEEN MASSIVE OUTFLOW OR INFLOW INTO BITCOIN OR OTHER DIGITAL CURRENCIES. ON THE DERIVATIVE SIDE OF THE MARKET WE ARE NOTHING A MATERIAL CHANGE SINCE THE SUMMER. OPEN INTEREST REMAINS AT STABLE LEVELS. THE KEY QUESTION IS, WHO ARE THE PARTICIPANTS IN THE MARKET, HOW IS THE ACTIVITY CHANGING? THE KEY QUESTION INTO TWO A 23 WITH A BROADER MACRO MARKET -- INTO 2023, WHAT THE BROADER MACRO MARKET LOOKS LIKE.
I THINK GENERALLY WE SEE INVESTORS TAKING A RISK OFF APPROACH IN TECH EQUITIES AND CRYPTO ASSETS. IT WILL BE INTERESTING TO SEE AS WE HEAD INTO THE NEW YEAR DEPENDING ON THE RATE ENVIRONMENT AND SENTIMENT ON RISK ASSETS IF IT WILL FLOW BACK INTO BITCOIN. I DO NOT THINK THAT COIN AND GOLD ARE SUBSTITUTES.
I DO NOT THINK PEOPLE THAT WANT TO EXPOSURE TO BITCOIN, A MORE VOLATILE GROWTH ACCEPT RELEGATED TO GOLD INSTEAD. ED: WHAT ABOUT BITCOIN RELATIVE TO OTHER CRYPTOCURRENCIES? IN TIMES OF DURESS, HISTORICALLY, BITCOINS DOMINANCE WITHIN THE BROADER MARKET OF TRIP TO CURRENCIES GOES UP. THE HEADLINE OF THE STORY IS THAT BITCOIN AS A STATUS QUO IS MAKING PEOPLE NERVOUS. IT IS HOVERING AROUND 40%.
GIVEN THE RECENT CHAOS, THE DROP IN VALUE OF ROD RANGE IN DID -- BROAD RANGE OF DIGITAL ASSETS WISER NOT MORE LOVE FOR BITCOIN? GUEST: ONE OF THE CHALLENGES FOR BITCOIN, THAT WE ARE WATCHING CLOSELY THE MINING SIDE OF THE BITCOIN -- ECOSYSTEM. IT IS MIND EVERY DAY -- MINED EVERY DAY, 19 MILLION OF THE 20 MILLION IS IN CIRCULATION. MINERS HOLD SOME BIT OF THE CIRCULATION, BUT THEY ARE SELLING OF THE SUPPLIES. THERE IS FUNDAMENTAL DYNAMICS
OF INCOMING SUPPLY OF NEWLY MIND BITCOIN INTO THE MARKET AND NEW BUYERS OF THE BITCOIN. ONE OF THE THINGS WE WILL BE WATCHING FOR IS THE ECONOMICS OF THAT COIN MINING. HOW THEY WILL SELL OR HOLD THE BITCOIN TO COVER EXPENSES. THE BIG THING LOOK OUT FOR IS THE INFLOWS AND OUTFLOWS. THE LAST TWO QUARTERS EVER SINCE THE SUMMER WE SAW THE MAJOR DROP IN BITCOIN FOLLOWING THE FORCED LIQUIDATION AND SELLING OF THE THREE ARROWS. IT WAS MUCH MORE BITCOIN AND ETHEREUM CENTRIC. WE HAVE NOT SEEN A MOVING
BITCOIN, HAS BEEN TRADE RANGE POUND. WE HAVE NOT SEEN AN UPSIDE. WITH THE FTX INCIDENT WE DO NOT SEE A MAJOR POOL OF THE COIN COMING TO MARKET. THAT WILL PUSH IT DOWNSIDE. IT IS A QUESTION OF IF IT WILL BE NEW INFLOWS IN THE NEW YEAR THAT CAN KICK OFF THE UPSIDE.
ED: WE HAVE BEEN EXCITED TO GET YOU ON THE SHOW. WE FINALLY HAVE THE OPPORTUNITY TO ASK YOUR TAKE ON FTX. WHAT HAPPENED, HAD WE NOT SEE THIS COMING? GUEST: I THINK, AGAIN, AS WE LOOK AT THE CRYPTO SPACE BROADLY. COIN SHARES IS A PUBLICLY LISTED COMPANY IS A PAINFUL EXERCISE FOR A COMPANY. IT IS EXTREMELY IMPORTANT AS A SPACE GROWS AND MATURES WE HAVE THAT TRANSPARENCY AND OVERSIGHT THE GOVERNANCE REPORTING THAT COMES FROM BEING PUBLICLY LISTED. WHILE IT IS NOT A PANACEA AGAINST FRAUD, MISCONDUCT OR POOR GOOD BINANCE -- GOVERNANCE.
I THINK WHAT WE SAW WITH WHAT HAPPENED WITH FTX IS THE RESULT OF A LACK OF TRANSPARENCY AND OVERSIGHT. IT WAS AN EXCHANGE THAT WAS DOMICILED OFFSHORE. NOT IN THE UNITED STATES OF AMERICA. I THINK AGAIN AS WE MOVE FORWARD WE ARE KEEN TO SEE MORE FIRMS OPERATING EITHER IN A MORE PUBLIC MANNER AND PROVIDING MORE TRANSPARENCY. THE OTHER STEP IS TO DO MORE
ACTIVITY FULLY ON CHAIN. THE LEDGER IS PUBLIC. THAT IS WHY THIS TECHNOLOGY IS SO EXCITING. WE WOULD LOVE TO SEE MORE FIRMS EMBRACING THE PUBLIC NATURE OF THE LEDGER AND DO THINGS MORE PUBLIC AND MORE VERIFIABLE MANNER. OUR CREDO IS DO NOT TRUST, VERIFY LET'S USE THE TECHNOLOGY G DO THAT. -- TO DO THAT. CAROLINE: WITH MORE COMPANIES GOING PUBLIC, CIRCLE IS NOT FOLLOWING THROUGH WITH HIS ACQUISITION, NO HANDHOLDING. THEY ARE PUSHING THROUGH THE
DAY THEY WERE MEANT TO MAKE A DECISION, DECEMBER THE 10TH. THEY STILL SAY THEY WANT TO GO PUBLIC. DO YOU THINK WILL HAPPEN ULTIMATELY WHILE WE STILL HAVE THE ALL THAT'S READY TO HAPPEN AND UNCERTAINTY AROUND THE REGULATORY ENVIRONMENT? GUEST: I THINK IT WILL BE CHALLENGING. THERE ARE A NUMBER OF CHALLENGES FOR FIRMS THAT WANT TO GO PUBLIC. SOME OF THEM ARE NOT UNIQUE TO CRYPTO. I THINK IT IS A GENERALLY CHALLENGING TIME FOR TECH EQUITIES IN PARTICULAR AND GROWTH STOCKS.
WE HAVE SEEN A MASSIVE HIT ON VALUATIONS, INVESTOR SENTIMENT HAS SHIFTED. WE DO NOT SEE THE MULTIPLES WE SAW ONE OR TWO YEARS AGO. I REMEMBER SEEING STOCKS TRADING AT 1200 FORWARD. THE OTHER CHALLENGE THE SEC ON THE CIRCLE SPAC THE CLOCK RAN OUT. THERE IS TIME FOR THIS GET DONE
AND THE REGULARS ARE NOT PICKING UP THE DOCUMENTS AND GETTING BACK TO FIRMS OR LETTING THE PROCESSES MOVE FORWARD AS INTENDED. UNTIL THERE IS A CHANGE IN WASHINGTON DC, ADMINISTRATIVE LEADERSHIP OR POLICY ITSELF, I THINK WILL BE CHALLENGING TO SEE MORE FIRMS GO PUBLIC. WE DO SEE OTHER ROUTES TO PUBLIC. VIA CANADA, A EUROPEAN JURISDICTION, BUT THEN AGAIN I THINK AMERICA IS THE LARGEST CAPITAL MARKET IN THE WORLD.
IT IS IMPORTANT FOR FIRMS TO HAVE THE TRANSPARENCY. ANALYST TO COVER CRYPTO EQUITIES IN THE MARKET TO UNDERSTAND THE FUNDAMENTAL DIFFERENCES IN THE BUSINESS MODELS BETWEEN CRYPTO FIRMS. NOT ALL OPERATE THE SAME WAY OR MAKE MONEY THE SAME WAY. ED: WE ARE LEARNING THAT LESSON, COINSHARES HAROLD -- HEAD OF STRATEGY. COMING UP, GENERATIVE AI IS FLOWING UP, AS PEOPLE USE COMPUTERS TO GENERATE LOVE ESSAYS. CAROLINE: THIS IS CHAT GPT.
IT HAS BEEN A NEW PREDICT -- INTRODUCTION TO THE TECHNOLOGY SHOW. WELCOME TO TIKTOK A NEW TECHNOLOGY SHOW WHERE WE EXPLORE THE LATEST IN -- TECH TALK, WHERE WE EXPLORE THE LATEST AND GREATEST IN TECHNOLOGY. IT IS HELPING PEOPLE RIGHT NEW POWER G -- POETRY, SOLVATE DIFFICULT MATH PROBLEM -- SOLVE A DIFFICULT MATH PROBLEM. IT CAN REJECT INAPPROPRIATE QUESTIONS. REMEMBER WHEN MICROSOFT AI CHABAD WAS CANCELED AFTER HUMANS MANAGE TO TEACH IT HOW TO MAKE RACIST COMMENTS. IT IS NOT PERFECT, THEY SAY IS AN EARLY DEMO OF WHAT IS POSSIBLE.
HE SAID, BACK IN 2015 WITH ONE COFOUNDER ELON MUSK, AND OTHER WEALTHY BACKERS. ELON MUSK HAS EXITED THE BOARD. CAROLINE: INTERESTING TO REMEMBER THAT ELON MUSK WAS PART OF THAT HOUNDING TEAM. -- FOUNDING TEAM. THEY HAVE BEEN TAKEN TO TWITTER TODAY TO TALK ABOUT HOW CHAT GBT LAUNCHED ON WEDNESDAY AND IT HAS NOW CROSSED ONE MILLION USERS. ED: IT IS THE RANGE OF THINGS THEY
USE IT FOR. YOU DID AN AMAZING JOB OF EXPLAINING THE EARLY STAGES. I SEE ON THE BLOOMBERG TOWN -- TERMINAL AND TWITTER FEED ASKING IF IT WILL REPLACE HUMANS. I AM THINKING, WILL SOME OF MY FAVORITE MUSIC ARTISTS BE REPLACED? A SONG, OR POETRY YOU MENTIONED IN YOUR PIECE. CAROLINE: THEY HAVE GOTTEN IT TO WRITE
MANY GOOD TRACKS. TALKING ABOUT THE NOTES USED IN THE FIRST RIFF. THIS DOES TALK ABOUT THE POWER AND HOW THIS WILL BE RELATED ULTIMATELY. ED: I AM WORRIED.
CAROLINE: THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY.
2022-12-06 17:31
