SBF on Trial | Bloomberg Technology 10/06/2023
>> FROM THE HEART OF WHERE INNOVATION, MONEY, POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG "TECHNOLOGY." CAROLINE: I AM CAROLINE HYDE IN NEW YORK AND ED IS OFF TODAY. WE ARE GOING TO TALK HIRING IN AT THE END OUT PAYROLL REPORT. WILL BRING YOU THE LATEST INFORMATION FROM THE TRIAL OF SAM BANKMAN-FRIED. WE WRAP UP THE LATEST FROM GOOGLE'S ANTITRUST TRIAL AND BRING YOU WHAT A NEW REPORT THAT SHOWS U.S.
WARNING THE EU ON IS A ACT REGULATION AND COMPETITION. LET'S CHECK IN ON THE MARKETS BECAUSE BLOWOUT JOBS NUMBER. WE SEE THE RAMIFICATIONS IN THE BOND MARKET, BUT TECH MANAGES TO PUSH THROUGH AFTER INITIAL KNEE JERK REACTION. U.S. 10 YEAR. WE ARE HEADED TOWARDS
MULTI-DECADE HIGHS SINCE 2007. BITCOIN ON THE HIGH SIDE IT'S A LITTLE BIT OF A DESIRE TO GET INTO THE RISK ASSETS ON THE BACK OF SOME THE NUMBERS LET'S HAVE A LOOK AT WHAT IS HAPPENING IN INDIVIDUAL STOCKS MOVERS OF TECHNOLOGY. BPD ON A TEAR. WE ARE SEEING IT OUTPERFORM THE LAST FEW MONTHS AND WEEKS AND CURRENTLY ON THE DATE UP. WE ARE OF SOME 4%. CHIPMAKERS MANAGING TO PUSH ON
THE HIGHER SIDE. I'M LOOKING AT TESLA ON THE DOWNSIDE. WE ARE ALL 0.8. THEY ONCE AGAIN CUT PRICES UP TO 2250 BEING PULLED DOWN IN TERMS OF A PRICE POINT. KEEPING ON PUSHING BACK. LET'S HAVE A LOOK AT WHAT IS HAPPENING MORE BROADLY IN THE MACRO DATA BECAUSE MAYBE ELON IS REACTING TO THAT. JOBS HIRING SPECIFICALLY IN THE TECH SECTOR.
WE ARE SEEING WHAT HAS BEEN A FOCUS ON AN ISSUE OF HIRING WITHIN THE TECHNOLOGY SPACE. I'M INTERESTED WHETHER OR NOT THAT IS REALLY BEEN WORN OUT FROM MACRO'S PERSPECTIVE. THINK WE ARE STILL WAITING FOR OUR GUESTS TO BE BROUGHT ON SO WILL GIVE HIM A MOMENT TO BE SET.
WE HAVE BEEN SEEING WHAT HAS BEEN NUMBERS. UNEMPLOYMENT RATE HOLDING AT 3.8% AFTER A SURGE OF UNEMPLOYMENT REENTERED THE JOB MARKET. PARTICIPATION REMAINING UNCHANGED AT 62.8%. WE WANT TO DIG INTO THE AREAS WE SEE GROWTH. HOSPITALITY AND LEISURE,
EDUCATION AND HEALTH CARE SECTOR WHICH IS BEEN LEADING SOME OF THE REBALANCE. IN THE TECHNOLOGY SECTOR, WE HAVE BEEN TALKING ABOUT LETTING GO OF PEOPLE AND NOT BROADLY RECEIVE MORE FOCUS ON MAYBE -- NOW MORE BROADLY WE ARE SEEING PEOPLE MAY BE STARTING TO REHIRE. DANIEL: WE ARE IN THE TECH SECTOR, THE WEIGHTY SOFTNESS HAS MANIFESTED HAS SHIFTED BECAUSE AT THE START OF THE YEAR WE SAW THE BIG WAVE OF LAYOFFS IN THE TECH SECTOR BUT NOW IT IS MORE ABOUT THE SOFTNESS IN HIRING, THE DIFFICULTY AND SOMEBODY LAID OFF WORKERS BY THE NEW JOBS AND IT IS SOMETHING WE SEE REFLECTED IN HOW EMPLOYEES ARE TALKING ABOUT THE TECH SECTOR.
WE SEE EMPLOYEE CONFIDENCE MEASURED ON GLASS DOOR ACTUALLY BELOW 50%, THAT MEANS UNDER 50% OF THE TECH EMPLOYEES HAVE A POSITIVE BUSINESS OUTLOOK FOR THEIR EMPLOYER. THAT IS NOT A GREAT SITUATION TO BE IN FOR THE INDUSTRY. CAROLINE: CAN YOU GIVE DEMOGRAPHICS ON THAT? THE KINDS OF PEOPLE WHO ARE NERVOUS? DANIEL: GENERALLY SPEAKING, ENTRY-LEVEL WORKERS TEND TO BE LESS CONFIDENT THAN SAY EXECUTIVES. WE THINK ABOUT THAT IT MAKES
SENSE BUT ONE CUT OF THAT IS MIDDLE MANAGERS HAVE SEEN DRAMATIC DECLINE IN THEIR BUSINESS CONFIDENCE AS WELL. PART OF THAT MIGHT BE BECAUSE YOU LOOK AT COMPANIES CUTTING COSTS. THE PRESSURE FALLS ON MIDDLE MANAGERS WHO HAVE TO ENACT THESE COST-CUTTING MEASURES AT THE SAME TIME DURING MORE WITH LESS AS THEY TRY TO GET THOSE COSTS UNDER CONTROL. CAROLINE: HOW MUCH IS FLEXIBILITY OR A LACK THEREOF BEARING WAY? WE ARE WORRIED ABOUT PARTICIPATION RATE. IN LIMIT WE HAVE SEEN THAT -- WITH WOMAN WE HAVE SEEN THAT RECOVER.
THAT IMPACT CERTAIN PEOPLE MORE THAN OTHERS. DANIEL: WE KNOW FLEXIBILITY IS A REALLY APPEALING FEATURE FOR JOBS BEYOND THE TECH SECTOR. IT BENEFITS IN DIFFERENT WAYS. IT MIGHT BE FLEXIBLE WORK ARRANGEMENTS IN LOCATIONS OR HOURS BUT IT IS ABSOLUTELY SOMETHING WE SEE EMPLOYEES CARE A LOT ABOUT. WE ARE ALSO SEEING A LOT OF EMPLOYERS ARE PULLING BACK ON THOSE OPTIONS AS THEY REALLY TRY TO GET COSTS UNDER CONTROL AND BE AS PRODUCTIVE AS POSSIBLE. THE EVIDENCE I THINK IS MIXED THERE. THERE ARE EMPLOYERS GETTING BY JUST FINE IN A FLEXIBLE WORK ARRANGEMENTS.
IT IS UP TO EMPLOYERS FIGURE OUT WHAT THE BEST WAY IS TO MANAGE THEIR WORKFORCE. CAROLINE: WE HAVE SEEN THE OXYGEN WITHIN TECHNOLOGY SPACE SUCKED OUT OF THE ROOM BY ARTIFICIAL INTELLIGENCE. WHAT IS HAPPENING FROM JOB OPENINGS AND WHETHER OR NOT COMPANIES CAN FEEL THOSE JOB OPENINGS FOR A HIGH WITHIN THEIR OWN LIBERAL FORCES THAT EXIST OR ARE THEY HAVING TO RESHUFFLE THE BENCHES A BIT? DANIEL: I THINK IT IS A LITTLE BIT EARLY TO SAY BECAUSE ALL OF THESE UNITS OF AI TOOLS ARE PRETTY NEW AND THE COMPANY STILL HAVE NOT FIGURED OUT EXACTLY HOW TO USE THEM. THEY'RE NOT FIGURED OUT WHAT THEIR STRATEGY SHOULD BE FOR USING AN EXTREMITY WITH THESE TOOLS SO I THINK RIGHT NOW WE ARE SEEING EXPERIMENTATION AND THEY ARE NOT A LOT OF FIRM PLANS IN PLACE BUT I THINK TRAINING IS A REALLY GREAT WAY EMPLOYERS CAN REWARD THE LOYAL EMPLOYEES THEY HAVE GIVING THEM OPPORTUNITIES FOR CAREER GROWTH AND SKILL DEVELOPMENT. REALLY GET ACCESS TO A POOL OF TALENT THAT OFFERS THEM A LOT.
CAROLINE: WAGE GROWTH SLOWING FROM A MACRO PERSPECTIVE SEE THE JOBS DATA. 4.2% YEAR-OVER-YEAR. WHAT ARE WE JUST A GIMMICK IN THE TECH SECTOR? -- WAGES LOOK LIKE IN TECH SECTOR>? >> THEY ARE NOT FALLING BUT THEY ARE MORE STAGNANT YEAR TO YEAR. COMPENSATION IS NOT JUST ABOUT BASE SALARY, IT INCLUDES BONUSES, EQUITY AND IT IS A PLACE WE HAVE SEEN A BIT OF A PULLBACK SO IT IS NOT NECESSARILY PEOPLE ARE GETTING THEIR BONUSES CUT, BUT WHEN THEY ARE LOOKING FOR A NEW JOB, MAY BE THE PACKAGE THEY DEMAND IS NOT AS LARGE AS IT MIGHT HAVE BEEN A YEAR AGO. CAROLINE: WHAT SIGNALS DO YOU LOOK TO? YOUR MEASURING SENTIMENT WHICH SEEMS TO BE ON THE DOWNSIDE. WHERE DO YOU LOOK NEXT BECAUSE MANY IN THE MACRO PERSPECTIVE ARE THINKING THIS JOBS MARKET HAS TO EVENTUALLY START TO COAL EVEN THOUGH IT DEFIES THAT EVERY SINGLE MONTH. DANIEL: I THINK IT IS IMPORTANT TO SEE
THAT MARRIAGE OF HARD AND SOFT DATA TOGETHER BECAUSE WE DO SEE THAT HARD DATA IS LOOKING REALLY HEALTHY FOR THE JOB MARKET. ALMOST SHOCKINGLY HEALTHY COMPARED TO WHAT WERE WE WERE THINKING COMING INTO THE YEAR BUT I THINK IT IS IMPORTANT TO LOOK AT THE SENTIMENT DATA AS WE LOOK AT HOW EMPLOYEES FEEL BECAUSE WHO KNOWS BUSINESS BETTER THAN THEIR EMPLOYEES ON THE FRONT LINES EVERY DAY OR INTERACTING WITH CUSTOMERS, SEEING HOW THE BUSINESS IS OPERATING. IT IS WHY WE THINK YOU CANNOT DISCOUNT THE USE OF THE SOFT SENTIMENT INDICATORS. CAROLINE: PARTICULARLY FROM THE MIDDLE MANAGEMENT LAYER. DANIEL ZHAO OF GLASS DOOR, WE THANK HIM.
WE UNPACKED THE LATEST DEVELOPMENTS FROM THE GOOGLE ANTITRUST TRIAL. REBECCA ALLENSWORTH WILL BE JOINING US. NEXT WEEK SEEM A LIKELY TO GET THE ANNOUNCEMENT AS TO WHETHER OR NOT THIS DEAL HAS BEEN RECTIFIED ENOUGH FOR THEM TO ALLOW IT TO GO THROUGH. WE UNDERSTAND REPORTING MICROSOFT INKS THIS DEAL WILL BE COMPLETED AS SOON AS NEXT WEEK. WE UNDERSTAND TODAY WAS THE LAST DAY THEY COULD GET ANY COMMENTS AS TO THE CMA VIEWPOINT ON THIS DEAL. WE ARE TRADING HIGHER. FROM NEW YORK, THIS IS BLOOMBERG "TECHNOLOGY."
CAROLINE: THIS IS A GREAT -- NEW ANALYSIS FROM THE U.S. STATE DEPARTMENT IS WARNING THE E.U. POLICY MAKERS ABOUT HIS PROPOSAL FOR GENERATIVE AI REGULATION SAYING IT IS TOO VAGUE. COULD FOSTER FAVORITISM FOR BIG TECH FIRMS. ONE OF THE KEY REPORTERS ON THIS. WHAT IS THE ARGUMENT THAT HEAD OF THE CURVE REGULATION AND THE EU IS GETTING IN BEFORE OTHER COUNTRIES SEEMS TO FAVOR BIG TECH EVEN MORE THAN SMALL? ANNA: THESE ARE INTERESTING DOCUMENTS.
SOME OF THE ARGUMENTS WE HEARD BEFORE BUT LEVELED OF DETAIL IN THE DOCUMENTS WERE INTERESTING TO SEE THE EXCHANGE BETWEEN POLICYMAKERS IN U.S. AND THE CURRENT COUNTERPARTS IN EUROPE. SOURCES WE SPOKE WITH SAID IT WAS OFFERED IN SPIRIT OF COOPERATION AND ALIGNMENT OF VALUES, NOT TO CRITICIZE THE EU WHEN IT COMES TO WRITING REGULAR SHOW AI IT IS IMPORTANT EVEN THE DEFINITIONS OF WHAT ARTIFICIAL INTELLIGENCE IS, WHAT DO WE MEAN BY FOUNDATION MODELS, DOES THE FINISHES ARE ALIGNED SO WHATEVER POLICY IS PASSED IN EUROPEAN UNION CAN THEN BE WORKING TOGETHER WITH WHATEVER POLICIES EVENTUALLY PASS IN THE UNITED STATES AND IT IS EVEN POSSIBLE FOR COMPANIES TO COMPLY WITH BOTH.
CAROLINE: THE A.I. ACT, MANY PUSH BACK AGAINST IT BECAUSE HOW THEY ARE APPLIED, THE ORIGINAL IDEA WAS IT WILL BE WITHIN THE APPLICATIONS AND WHEN IT IS RISKY BUT NOW THEY SEEM TO WANT TO HAVE TRANSVERSELY ABOUT WHAT IS WITHIN THE FOUNDATION MODEL. IS THAT THE KEY ISSUE OF COMPETITION? IS IT BECAUSE IT WILL BE EXPENSIVE TO GET THAT SORT OF TRANSPARENCY? ANNA: THERE ARE A LOT OF ISSUES. IT IS INTERESTING TO SEE HOW THIS CONVERSATION IN EUROPE DEVELOPS BECAUSE THE AI AT READY TO GO AT THE BEGINNING OF THIS YEAR. IT WAS FOCUSED ON THE RISKINESS OF THE END USE. THIS IS A RISK-BASED APPROACH WHICH U.S. SUPPORTERS BUT THEN WITH THE
RELEASE OF CHATGPT AND OTHER CONSUMER FACING AI PRODUCTS, THERE IS REALLY GROWING CONCERN THE APPLICATION OF THESE TOOLS WAS NOT ENOUGH TO REGULATE. THE NEEDS TO BE SOME KIND OF REGULATORY RULES FOR THE WAY THE MODELS ARE EVEN DEVELOPED IN THE FIRST PLACE AND THAT IS WHERE WE START TO SEE PUSHBACK FROM COMPANIES WHO INITIALLY I THINK WERE PRETTY OPEN TO THE AI ACT, THIS RISK-BASED APPROACH BUT THEY DO NOT WANT TO HAVE PERCOLATORS IN EUROPE SAYING HOW THEY CAN OR CANNOT DEVELOP THE UNDERLYING MODELS AND THAT IS WHERE WE SEE THE UNITED STATES SAYING THE WAY THIS IS WRITTEN COULD CAUSE PROBLEMS FOR INNOVATION FOR THE LITTLE GUYS TRYING TO CATCH UP WITH THE BIGGER COMPANIES THAT HAVE THESE MODELS. WE KNOW HOW THIS WAS OFFERED FROM THE UNITED STATES. WILL WATCH CLOSELY HOW THIS IS RECEIVED IN EUROPE. CAROLINE: THANKS SO MUCH FOR BRINGING US THIS GREAT STORY. IT IS THE SAME NAMES THAT YOU CAN MAKE UP TIME AND TIME AGAIN AND OF COURSE WHO FOUNDATIONAL MODEL, GOOGLE AND WHO IS BEEN UNDER OTHER ANTITRUST VIEWPOINT AND PARTICULAR REGULATION IN THE U.S., ALPHABET. THAT'S REVISIT WHAT HAS BEEN
HAPPENING THROUGHOUT THIS WEEK. THE TRIALS UNDERWAY, THE ASSESSMENT WHAT IS HAPPENING WITH AMAZON. REBECCA ALLENSWORTH JOINS US. BUSY TIME IN THE WORLD OF ANTITRUST. WE ALL KNEW IT WAS COME.
I'M INTERESTED WHAT YOU THINK ABOUT THE ALPHABET CASE. WE HAVE HAD REALLY PHENOMENAL IN TERMS OF SHOCKING PIECES OF REVELATIONS COMING FROM THE CEO OF ALL THE COMPANIES. -- RIVAL COMPANIES. REBECCA: THE BIG NEWS IS THE TESTIMONY THAT SHE TESTIFIED ABOUT WHAT IT WAS LIKE TO COMPETE WITH GOOGLE AND HINTED A BLEAK PICTURE.
OF HIS OWN COMPANY TO COMPETE SO HE MUST'VE BEEN FEELING LIKE HE WAS WALKING A FINE LINE BUT HIS POINT WAS WE COULD APPROACH APPLE WITH THE SAME BILLIONS AND BILLIONS OF DOLLARS AND THEY WERE NEVER GOING TO TAKE IT. THERE ALWAYS GOOD TO GO WITH GOOGLE AND IT IS IMPOSSIBLE TO COMPETE WITH GOOGLE ON SEARCH. CAROLINE: DOES THAT PLAY INTO GOOGLE'S HAND AND AT LEAST HIS ARGUMENT APPLE'S ARGUMENT HAS ALWAYS BEEN GOOGLE IS NOT THE PRODUCT. IT IS NOT VERY TOO BIG, THEY'RE
THAT MUCH BETTER. REBECCA: THAT IS RIGHT BUT THE REST OF THE TESTIMONY THE PAST FEW WEEKS, IT HAS FOCUSED ON THIS IDEA OF SCALE AND HOW SCALE IS ESSENTIAL TO BUILD THAT BETTER SEARCH PRODUCT SO PART OF WHY WILLING TO PAY AS MUCH AS IT WAS TO BE THE DEFAULT ON APPLE WAS THEY WANTED TO GET THE SCALE. IT WAS PERFECT FOR THEM TO LOSE MONEY ON THE DEAL IN THE SHORT TERM IF THEY COULD HAVE THE USER DATA TO BUILD A PRODUCT THAT COULD REALLY COMPETE WITH GOOGLE. THE QUESTION IN THIS CASE, ONE WAY OF CLAIM IT IS, IS GOOGLE BETTER BECAUSE IT IS BIG, OR IS GOOGLE BIG BECAUSE IT IS BETTER? GOOGLE WANTS YOU TO THINK THE LATTER. GOOGLE WANTS YOU TO THINK THEY
ARE ONE AND THEY ARE BIG BECAUSE THEY HAVE A BETTER PRODUCT. I THINK THE GOVERNMENT IS TRYING TO TELL A DIFFERENT STORY SAYING YOU HAVE TO BE BIG TO BE GOOD TO ME OUGHT TO LET OTHER COMPANIES HAVE A SHOT AT BECOMING BIG. CAROLINE: I SUPPOSE IT DOES PUSH US FORWARD TO AND ERA GOOGLE UNDER COMPETITIVE THREAT BECAUSE OF GENERATIVE AI BECAUSE WE ARE STARTING TO SEE CHAT GPT, OPENAI RELATIONSHIP WITH MICROSOFT MAYBE BRING PEOPLE ACROSS THE DIFFERENT KIND OF SEARCH PRODUCT. MORE BROADLY, WHAT DID YOU MAKE OF THE REPORTING AROUND THE AI ACT, SOME OF THE COINBASE MIGHT NOT BE ABLE TO COMPETE WITH THE BIG COMPANIES? HOW MUCH OF THIS IS A NEVER ENDING CONVERSATION WHEN IT COMES TO SIZE AND POWER? REBECCA: ABSOLUTELY. ANY KIND OF REGULATION,
UNFORTUNATELY, MOST REGULATION, LOTS OF PERCOLATION DOES BENEFIT BIG COMPANIES IN SINCE COMPLIANCE IS EXPENSIVE. IT EXPRESSIVE TO COMPLY WITH THE LAWS AND SOME TIME TO DO SOMETHING A SMALL COMPANY CANNOT DO. IT IS ANOTHER REASON WHY IT BEING BIG IS IMPORTANT AND WHY WE NEED TO ALLOW OTHER COMPANIES THE SIZE BUT HUMANS LIKE GOOGLE TO GET THAT KIND OF SIZE AND SCALE.
MICROSOFT IS NOT A SMALL COMPANY BY ANY MEASURE. BUT IT IS IN TERMS OF MARKET SHARE FOR SEARCH. CAROLINE: YOU HAVE SOME OTHER PLAYERS LIKE DUCKDUCKGO GIVING EVIDENCE THERE AS WELL. MOVING ON TOWARDS WHAT IS ALSO BEEN FRONT AND CENTER FOR US, THE FTC ANALYZATION OF AMAZON IN THE MARKETPLACE. THE CMA OVER IN THE U.K. ALSO LOOKING INTO THE INTERPRETATION OF CLOUD AND HOW NOT TO MISS COMPETITION IN THAT SPACE EITHER. CAN YOU PAINT A PICTURE OF HOW
REGULATION IS EVOLVING HERE, U.K. COME E.U.? IS EVERYONE FIGHTING THE SAME FIGHT? REBECCA: EVERYONE IS FIGHTING THE SAME FIGHT IN DISTANCE EVERYONE IS RECOGNIZING THE MARKET POWER OF THESE PLATFORMS. THE WAY TECHNOLOGY IS CHANGING FAST AND THEREFORE THE COMPETITIVE CONDITIONS ARE CHANGING FAST AND WANTED TO BE ADOPTED IN THEIR REGULATION TO FOSTER COMPETITION IN ALL THESE NEW AREAS. THE SUIT AGAINST AMAZON'S REPRESENT THE THIRD MAJOR
STRIKE BY THE GOVERNMENT AGAINST A MAJOR AMERICAN PLATFORM MONOPOLY. THE LAST ONE LEFT IS APPLE. CAROLINE: INDEED. TO THAT POINT COME WHEN YOU ARE DRILLING IN AMAZON AND AMAZON GETTING INTO OTHER PEOPLE'S COMPETITIVE SPACE. IT IS BECOMING AN ADVERTISER. HOW DO YOU SEE THESE INQUISITIONS GOING? DO YOU THINK THE FTC WILL WIN OUT OR WERE THEY ULTIMATELY NOT NEED TO WIN THIS CASE TO CHANGE THE DIRECTION OF THE WAY WE THINK ABOUT MONOPOLIES AND POWER AND REGULATION? REBECCA: BOTH ARE POSSIBLY TRUE.
IT IS TOO EARLY TO SAY THE FTC AND DOJ ATTEMPT TO REIN IN BIG TECH HAS BEEN UNSUCCESSFUL. THEY'VE HAD DISAPPOINTING LOSSES IN CORKER BUT THEY HAVE HAD SMALL WINS AND IS ONLY BEEN A COUPLE OF YEARS THEY HAVE BEEN TRYING TO DO THIS. LOOK AT THE 70'S WHEN IN RETROSPECT ANTITRUST TURN ON A DIME. BUT ACTUALLY IT TOOK MANY YEARS
FOR THAT TO CRYSTALLIZE. THINK IS TOO EARLY TO SAY. AS FAR AS THE LONG RUN PROSPECTS FOR THESE IMPERATIVES, I THINK IT DEPENDS ON THE POLITICAL WILL. LAW IS NOT IMPERVIOUS TO WHAT THE PEOPLE WANT.
I THINK PEOPLE ARE STARTING TO BE MORE SKEPTICAL OF MARKET POWER. CAROLINE: IN THAT RESPECT, WE WERE AWARE THE FTC INVESTIGATION OF THEM IS GOING TO TAKE AT LEAST 18 MONTHS TO START. DO TIMELINES ARE IN AND INVESTORS MY SAID SOMETHING THEY SHOULD THINK ABOUT? REBECCA: YOU SAID IT BEFORE WHEN YOU SAID YOU HAVE TO WIN TO CHANGE THE SITUATION AND I THINK THE DELAY IS A PART OF THE EXPLANATION. IT MAY NOT BE TRUE TO FILE A SUIT AND THEN SIX MUST LATER AS A RESOLUTION AND YOU HAVE AN OUTCOME. IT MIGHT TAKE SO LONG COMPETITIVE CONDITIONS CHANGE AND THEY THINK YOU WERE SELLING ABOUT IS NOT REALLY TRUE ANYMORE -- SUING ABOUT IS NOT REALLY TRUE ANYMORE. THAT DOES NOT MEAN IT IS NOT HAVE A DETERRENT EFFECT.
THE COMPANY IS NO GOING FORWARD, INTO THEIR BUSINESS DEALINGS -- SORRY. CAROLINE: WE JUST GOT WANTING THE PRESIDENT IS WALKING OUT. PRES. BIDEN: WE CREATED 13.9 MILLION NEW JOBS. MY DAD HAD AN EXPRESSION, JOB IS A LOT MORE ABOUT THAN A PAYCHECK. IT IS ABOUT YOUR DIGNITY. IT IS ABOUT RESPECT. IT IS ABOUT BEING ABLE TO LOOK
YOUR KID IN THE EYE AND SAY IT IS GOING TO BE OK AND MEAN IT. 236 THOUSAND MORE AMERICANS IF THEY HAVE CHILDREN THEY CAN SAY THAT TO THEIR CHILDREN AND MEAN IT. THE AN IMPLEMENT RATE STAY BELOW 4% FOR 20 MONTHS IN A ROW, THE LONGEST STRETCH IN 50 YEARS. RECORD LOWS IN UNEMPLOYMENT FOR AFRICAN-AMERICANS AND HISPANIC WORKERS. AND PEOPLE WITH DISABILITIES.
FOLKS HAVE BEEN LEFT BEHIND IN PREVIOUS RECOVERIES LEFT BEHIND FOR TOO LONG. WE HAVE THE HIGHEST SHARE OF WORKING AGE AMERICANS IN THE WORKFORCE IN 20 YEARS. IT IS NO ACCIDENT.
IT IS BINDING ON MX -- BI INFLATION ISD COMING DOWN AT THEE SAME TIME. NOMICS. CORE INFLATION WAS JUST 2.2%. THE PAST THREE MONTHS. WE HAVE THE LOWEST INFLATION OF ANY MAJOR ECONOMY IN THE WORLD. TODAY WE ARE CELEBRATING NATIONAL MANUFACTURING DAY. IT SEEMS APPROPRIATE. I CAN THINK OF NO BETTER WAY TO MARK THE OCCASION THEN SAID THANK THE 13 MILLION AMERICANS WHO ARE IN MANUFACTURING JOBS. THEY ARE RESTORING OUR PRIDE,
MAKING THINGS IN AMERICA, AND TODAY I WANT TO HIGHLIGHT THOSE 13 MILLION MANUFACTURING JOBS, CREATED SINCE I TOOK OFFICE. TWICE AS MANY AS THE PREVIOUS ADMINISTRATION. A REPORT WE LEARNED EARLY THIS WEEK, SPENDING ON CONSTRUCTION FOR NEW FACTORIES BEING BUILT TO GENERATE MORE ECONOMIC GROWTH OF JOBS HIT AN ALL-TIME HIGH LAST MONTH.
FOLKS, BIDENOMICS IS ABOUT INVESTING IN AMERICA AND AMERICAN WORKERS. THIS IS OUR INVESTING IN -- CONSIDER INVESTING IN A VENTURING THAN EVER BEFORE. BEFORE THE PANDEMIC, SUPPLY CHAIN IS A PHRASE MOST PEOPLE DID NOT ASSOCIATE WITH AND THINK MUCH ABOUT. TODAY, AFTER DELAYS AND AVAILABILITY OF PARTS AND PRODUCTS, EVERYONE HAS KNOWN ABOUT, THEY KNOW WHY IT IS SO IMPORTANT. MY ECONOMIC PLAN BRING SUPPLY CHAIN'S HOME. INVESTING IN INDUSTRIES OF THE
FUTURE SO WE CAN MAKE THINGS IN AMERICA AGAIN WITH AMERICAN WORKERS. WE ARE CREATING GOOD JOBS. COMMUNITIES ALL ACROSS THE COUNTRY INCLUDING IN PLACES THAT HAVE BEEN LEFT BEHIND THE LAST SOME CASES 20 YEARS BECAUSE THE FACTORIES PLACE STILL WORK IN SHUT DOWN, LEAVING THEM WITH NO OPTIONS, NO JOBS IN THE COMMUNITY COME ALL OVER THE MIDWEST AND ALL OVER THE NORTHEAST. BIDENOMICSBIDENOMICS UNDER YOU WOULD NOT HAVE TO LEAVE HOME TO GET A GOOD JOB. I DID NOT KNOW HOW MANY TIMES I HEARD ON THE ROAD PEOPLE SAYING MY KIDS THAT A GOOD EDUCATION AND SAID I HAVE NO JOB. WELL, YOU'RE GOING TO BE UP TO
FIND A GOOD JOB CLOSE TO HOME MORE AND MORE ALL ACROSS AMERICA. WE ARE MAKING SURE THE JOBS WE ARE CREATING OFFER WORKERS A FREE AND FAIR RIGHT, IF THEY CHOOSE, TO JOIN A UNION, TO FORM A UNION. BIDENOMICS LEADING RESEARCH AS HE DO NICE, EXERCISING COLLECTIVE BARGAINING RIGHTS. FOR EXAMPLE, OUR CLEAN SCHOOL BUS PROGRAM IS REPLACING DIRTY DIESEL BUSES WITH CLEAN ELECTRIC BUSES SO CHILDREN USING ON AND OFF THE BUSES CAN'T BREATHE CLEAN AIR, NOT DIESEL FUEL.
-- CAN BREATHE CLEAN AIR, NOT DIESEL FUEL. WE SAW IN GEORGIA WHEN WORKERS THAT IS RECEIVING FEDERAL FUNDS VOTED TO UNIONIZE BECAUSE THAT WAS THEIR CHOICE. THE TREASURY DEPARTMENT LAID OUT RECENTLY IN A MAJOR REPORT THAT UNIONS AND COLLECTIVE BARGAINING ARE GOOD FOR THE ECONOMY OVERALL. THEY HELP RAISE WAGES NOT ONLY FOR WORKERS IN THE FACTORY BUT FOR EVERYONE. WHETHER OR NOT THEY ARGUE UNION -- THEY ARE UNION. THE INCREASE CORPORATE GROWTH. TODAY'S JOB REPORT IS JUST
ANOTHER EXAMPLE OF WHAT IT LOOKS LIKE WHEN WE FOCUS ON BUILDING AN ECONOMY FROM THE MIDDLE OUT AND THE BOTTOM UP, NOT THE TOP DOWN BARBECUE DEFICITS DOWN AT THE SAME TIME. JUST THIS SUMMER, I SIGNED STRONG BIPARTISAN LAW RUSSIA CANCELED THE FORMER SPEAKER -- BIPARTISAN LAW WHERE I SHOOK HANDS WITH THE FORMER SPEAKER, TO CUT SPENDING BY $1 TRILLION THE NEXT 10 YEARS. LAST WEEKEND REPUBLICAN HOUSE MEMBERS DECIDED THEY WERE GOING TO PUT THAT PROGRESS IN JEOPARDY. THEY MAY BROUGHT US TO THE BRINK OF A GOVERNMENT SHUTDOWN TREATING UNNECESSARY INSTABILITY AND RISK TO SECURE MORE EXTREME CUTS IN PROGRAMS THAT HELP WORKING AMERICANS AND SENIORS. CUTS THAT WOULD'VE HURT EVERYONE AND U.S.
MANUFACTURING, WOULD HAVESTYMIED THE PAY OF MILITARY PEOPLE. THEY TRIED CUTTING FUNDING BY 30% FOR SMALL BUSINESSES WHICH ARE GROWING UNDER OUR ADMINISTRATION. FOR LOCAL MANUFACTURERS, FOR MANUFACTURING EXTENSIVE PARTNERSHIP PROGRAM THAT HELPS SMALL AND MEDIUM-SIZE MANUFACTURERS ATTRACT AND TRAIN WORKERS AND GROW THEIR BUSINESSES. WE STOPPED THEM.
I'M SICK AND TIRED OF REPUBLICANS IN THE HOUSE SAYING HE WANTS TO CUT THE DEFICIT WHEN ALL THEY REALLY WANT TO DO IS CUT TAXES FOR THE VERY WEALTHY AND BIG CORPORATIONS. WHICH ONLY ADDED TO THE DEFICIT. KNOWS ABLE TO CUT THE FEDERAL DEBT -- WHEN I WAS ABLE TO CUT THE FEDERAL DEBT, IT WAS FOR THE CORPORATIONS THAT MADE $40 BILLION AND WERE NOT PAYING A PENNY IN TAXES, WE MADE THEM PAY 30%. 15%.
NOWHERE NEAR WHAT THEY SHOULD PAY. WE ARE ABLE TO PAY FOR EVERYTHING AND WE END UP WITH A SURPLUS. IT IS NOT ABOUT -- IT IS NOT WITH THE ECONOMY NEEDS RIGHT NOW, MORE TAX CUTS BY DEVELOPING. -- BY THE WEALTHY. WITH CUT THE DEFICIT. THE LAWS I WILL SIGN WILL CUT IT UP BY ANOTHER ONE TRILLION THE NEXT 10 YEARS AND MY BUDGET WILL CUT IT BY ANOTHER 2.5 TRILLION OVER 10 YEARS.
HERE IS THE DEAL. THE FEDERAL DEBT WENT UP BY 50% UNDER MY PREJ -- UNDER MY PREDECESSOR. I BELIEVE WE SHOULD BE REDUCING THE DEFICIT BY MAKING SURE THE ABOUT THE ENDLESS OPERATIONS AND JUST PAY THEIR FAIR SHARE.
JUST PAY THEIR FAIR SHARE BY CUTTING WASTEFUL SPENDING ON SPECIAL INTEREST LIKE BIG OIL. BIG PHARMA. THE SAME THING WE JUST GAVE THE AMERICAN PUBLIC A REAL GIFT IN TERMS OF -- NOT A GET FROM FAIRNESS IN TERMS OF WHAT THEY HAVE TO PAY. CAROLINE: PRESIDENT BY THEM FROM THE JOBS DATA. A BLOW OUT A NUMBER OF 336,000 JOBS ADDED. THE PARTICIPATION RATE VARYING BETWEEN MEN AND WOMEN.
WE KEEP AND I AM WHAT PRESIDENT BYBEE IS SAYING AND HE IS TURNING HIS ATTENTION TO TAX RATES AS WELL FOR CORPORATES. LET'S TURN OUR ATTENTION TO THE CHILD THE SAM BANKMAN-FRIED FTX CO-FOUNDER GARY WANG SAID HE AND FRIED COMMITTED FRAUD THAT LED TO THE COLLAPSING WE TOOK THE STAND TO TESTIFY. HANNAH MILLER HAS BEEN ACROSS THIS STORY FOR THE LAST SEVERAL YEARS BUT ALSO NOW AS WE SEE WHAT IS GOING TO BE A SIX-WEEK TRIAL COME TO BEAR HERE IN NEW YORK. WHAT DO YOU MAKE OF WANG? HANNAH: IT IS DAMNING TESTIMONY. HE IS LAID OUT THAT SAM
BANKMAN-FRIED WAS A DRIVING FORCE IN TERMS OF SETTING UP SPECIAL PRIVILEGES FOR A LIMITED RESEARCH AS AN FTX CUSTOMER. THE ADVANTAGES ALAMEDA HAD OUR STUNNING. CAROLINE: BUT HIS THEY HAD AS A CREDIT LINE IS THE ACQUISITION HERE -- GOING AS THEY HAD AS A CREDIT LINE IS ACQUISITION HERE. THAT WAS THE ROLE OF THE CEO SEEM TO BE UNDERMINED HERE. HANNAH: ALAMEDA RESEARCH HAD 865 WILL EURO-DOLLAR LINE OF CREDIT, NO OTHER CUSTOMER HAD A LINE OF CREDIT OVER $1 BILLION. THIS IS PRETTY INSANE.
THEY ALSO HAD A NEGATIVE BALANCE ON THEIR ACCOUNTS. THEY ARE ALLOWED TO WITHDRAW -- THEIR ACCOUNTS WOULD NOT BE LIQUIDATED AT THE CRYPTO BETS WITH SOUR AND IT SEEMS SAM BANKMAN-FRIED ACCORDING TO THE TESTIMONY WAS WELL AWARE OF THIS. PEOPLE WERE TRUSTING HIS JUDGMENT IN TERMS OF SETTING UP THESE ADVANTAGES ALAMEDA RESEARCH. CAROLINE: HAS THERE BEEN ANY ONE WHO HAS COME A LITTLE BIT MORE TOWARDS SAM BANKMAN-FRIED'S DEFENSE HERE, WHO HAS BEEN GIVING EVIDENCE? IT WAS NOTABLE OF A LONG-TERM FRIENDS, PEOPLE WHO HAD BEEN UNIVERSITY WITH, PERHAPS TRY TO ECHO HE WAS NOT SOMEONE WHO WAS FLAMBOYANT, EVEN THOUGH THERE WAS MONEY BE SPENT ON IT PENTHOUSE, HE WAS NOT SPEND IT ON HIMSELF? HANNAH: YES, IT TESTIMONY YESTERDAY, A FORMER FRIEND OF SAM BANKMAN-FRIED AND WORKED FOR FTX. HE TESTIFIED THAT SAM DID NOT LIVE THAT LIFE STORY.
HE WORE REGULAR CLOTHES. I BELIEVE THAT IS OFFSET BY THE MILLIONS OF DOLLARS IN REAL ESTATE PURCHASES THAT FTX MADE AND THE EMPLOYEES THAT THE LIFE THE EMPLOYEES HAD IN THE BAHAMAS. CAROLINE: HANNAH MILLER, A GREAT PODCAST ON THE FTX AND THE DOWNFALL AND I SURE YOU WILL CONTINUE TO BE A VIEWER AND LISTENER IN ON ALL OF THAT IS HAPPENING IS TO BE NEW YORK. WE THANK YOU FOR RUNNING ESTHER WITH HAVE BEEN YESTERDAY. ANOTHER STORY WE HAVE BEEN FOLLOWING.
FOR THIS FUND, ABC FOUNDATION GRANT PROGRAM FOR BUSINESSES RUN BY BLACK WOMEN. IT HAS BEEN PROHIBITED FROM CAUSING HIS APPLICATION WINDOW SEPTEMBER 30 AND TOOK FOR THEIR ORDER BY ACCORD. IS FOLLOWING A LAWSUIT FROM THE AMERICAN AIRLINES FOR EQUAL RIGHTS, IT ARGUES THE PROGRAM BY THE FEARLESS FONDA VIOLATES SECTION 1981 WHICH BANS RACIAL DISCRIMINATION IN CONTRACTING. LET'S BRING IN KELSEY BUTLER TO BREAK DOWN WHAT IS A COMPLEX BUT FAR-REACHING ARGUMENT THAT IS HAPPENING OUT IN GEORGIA. THE ARGUMENT HERE IS THAT YOU CANNOT LEVEL UP IN TERMS OF ALLOCATION OF CAPITAL. BY ONLY GIVING MONEY CERTAIN FUNDS TO WOMEN OF CALAIS. WHAT IS THERE ARGUMENT AGAINST
PHYLLIS FUND -- FEARLESS FUND? KELSEY: THE GROUP SAYS IT VIOLATES THE CIVIL RIGHTS ACT THAT IS ESSENTIALLY BY TARGETING A SPECIFIC GROUP THOUGH THEY ARE UNDERREPRESENTED. AT LEAST OUT OTHER GROUPS ON THE BASIS OF RATES -- IT LEAVES OUT OTHER GROUPS ON THE BASIS OF RATES. THE PERSON BEHIND THE ORGANIZATION THAT IS SUING, EDWARD BLOOM, CONSERVATIVE ACTIVISTS WHO WAS INVOLVED IN THE CASE AGAINST HARVARD. AS WE KNOW THE SUPREME COURT ULTIMATELY BAN RAISE CONSCIOUS ADMISSIONS IN COLLEGES SO AFFIRMATIVE ACTION IS NO LONGER THE REALITY WHEN IT COMES THE REALITY WHEN IT COMES TO COLLEGE ADMISSIONS. THAT WIN EMBOLDENED HIM AND PROBABLY OTHER CONSERVATIVE ACTIVISTS HAVING ISSUE WITH DIVERSITY PROGRAMS. CAROLINE: THIS IS GOT TO BE QUITE -- ONE OF QUITE A FEW FUNDS TO ALLOCATE MONEY TO MINORITIES WHETHER IT IS TO ENTREPRENEURS WHO ARE WOMEN, THE FIRST ENTREPRENEURS.
WHAT IS THE EFFECT OF SOMETHING GOING ON FOR ONE PARTICULAR FUND? KELSEY: DOESN'T HAVE A CHILLING EFFECT. WERE NOT ONLY SEEING IT PLAY OUT IN CORE BUT WE SEE UP TO JUST DIVE IN AND TARGET COMPANIES. WHAT THAT IS DOING AND WHY AM HEARING ABOUT IS THAT COMPANIES DID NOT WANT TO PUT A TARGET ON THEIR OWN BACKS BY LOUDLY TALKING ABOUT THE DIVERSITY PROGRAMS BY EVEN KEEPING ONE'S IN PLACE THEY ALREADY HAVE.
THEY ARE RUNNING THOSE BY LAWYERS AND SAYING ARE WE IN ANY WAY POTENTIALLY RUNNING A VALID THE LAW WHERE -- AFOUL OF THE LAW. CAROLINE: THANK YOU FOR YOUR REPORTING. KELSEY BUTLER SETTING UP SITUATION MANY SEE AND CORPORATE ALLOCATOR AND NOW CONSIDERING. JOEY MAK IS ALSO AT THE FRONT OF THIS. CEO OF CHICAGO BLEND A NONPROFIT WORKING ON DIVERSITY EQUITY AND INCLUSION. WHAT ARE YOUR QUESTIONS COMING AT THE MOMENT FROM DIVERSE FOUNDERS, DIVERSE VC WEARING ABOUT THE FUNDS THEY HAVE RATES FROM CORPORATE AMERICA? JOEY: WE WERE SHOCKED BY THE LAWSUIT BUT NOT AT ALL SURPRISED BECAUSE WE KNOW IT IS A PART OF A BROADER PUSH TO DIMINISH DIVERSITY EFFORTS IN BUSINESS.
THERE ARE LOTS OF QUESTIONS COMING IN AND AROUND WHAT DOES THIS MEAN FOR ME AND MY FIRM BUT AT THE END OF THE DAY SERGEANT FIRMS DOES NOTHING TO MOVE THE INDUSTRY FORWARD ON THE ENFORCES EXISTING INEQUITIES. OUR MESSAGE TO THOSE FIRMS THAT ARE INVESTING IN UNDER REPRESENTED FOUNDERS IS TO CONTINUE DOING THE WORK. THIS GOING TO BE A LONG, LEGAL BATTLE. THIS BEGINNING STAGES OF IT. WHILE IT IS PLAYING OUT IN
CORE, WE ARE ENCOURAGING FIRMS TO CONTINUE INVESTING IN UNDERREPRESENTED FOUNDERS. CAROLINE: WE KNOW THE STATISTICS ARE PRETTY AWFUL WHEN IT COMES TO DIVERSE ALLOCATION. LESS THAN 2% IN CAPITAL DEPLOYED IS IN WOMEN LED START UP'S. TO PLAY THE OTHER SIDE, IS IT
RIGHT YOU SHOULD HAVE AFFIRMATIVE ACTION, CERTAIN FUNDS ALLOCATED TO ONLY MINORITY LED TO BUSINESSES, TO HELP WITH LEVELING OF, TO HELP EQUITABLE DISTRIBUTION OF CAPITAL? IS THERE ANOTHER WAY OF DOING THIS? JOEY: AT THE END OF THE DAY, HAVING MORE DIVERSITY AMONG THE INVESTOR CLASS WILL ENABLE MORE CHECKS TO BE WRITTEN TO UNDER REPRESENTED FOUNDERS. PEOPLE TEND TO ASSOCIATE AND INVEST IN OTHER PEOPLE WHO LOOK LIKE THEM SO FOR US WE LOOK AT WHAT THIS DIVERSITY LOOK LIKE ACROSS THE VENTURE ECOSYSTEM, ACROSS THE ECOSYSTEM OF PEOPLE MAKING THOSE INVESTMENTS. WE SEE THAT BECAUSE OF THE SEVERE UNDERREPRESENTATION OF WOMEN AND PEOPLE OF COLOR WE SEE THAT JUST LIKE THE PEOPLE WHO ARE GETTING CHECKS AND ULTIMATELY IF WE CAN GET MORE DOLLARS IN THE HANDS OF UNDERREPRESENTED FOUNDERS, THEY WILL BE ABLE TO BUILD COMPANIES, PENETRATE NEW MARKETS THAT A LOT OF INVESTORS ARE CURRENTLY LOOKING AT AND BUILD COMPANIES THAT WILL BE DURABLE AND CONSERVE DIFFERENT SEGMENTS OF THE POPULATION BEING OVERLOOKED. CAROLINE: WE ARE LOOKING AT CHICAGO BLEND BACKERS. I THINK OF THE FEARLESS FUND
THIS HAD MONEY, MULTIMILLION DOLLAR ALLOCATION FROM MASTERCARD, COSTCO, BANK OF AMERICA, HOW MANY OF THESE INSTITUTIONAL COMPANIES ARE WORRIED ABOUT SUPPORTING NONPROFIT LIKE YOURS? JOEY: I CAN SPEAK ABOUT THE COMPANIES AND THE CORPORATIONS THAT HAVE BEEN SUPPORTING US. I THINK THEY SUPPORT DOES BECAUSE THEY SHARE OUR COMMITMENT TO DIVERSITY EQUITY AND A CONCLUSION. THEY SEE THE BUSINESS CASE FOR WHY WE NEED TO CONTINUE INVESTING IN UNDERREPRESENTED FOUNDERS. THEY CONTINUE TO SUPPORT OUR WORK. ALTHOUGH THIS CHILLING EFFECT
YOUR PREVIOUS SPEAKER MENTIONED IS CERTAINLY VERY REAL, OUR MESSAGE TO THEM AS WELL AS TO OTHER FUNDS IS WE NEED A REMIND OURSELVES OF WHAT -- WOBBLER DOING THE WORK. ULTIMATELY WE NEED TO FOCUS ON GETTING MORE DOLLARS, MORE VENTURE FINANCE DOLLARS AS HE HAS OF UNDERREPRESENTED FOUNDERS AND THAT IS ULTIMATELY HOW WE'RE GOING TO BUILD A MORE EQUITABLE AND COMPETITIVE SET ECOSYSTEM. CAROLINE: SOMEONE IS LOOKING FOR ADVICE AND THEY ARE THE CATALYST OCCURRING IN GEORGIA, WHAT DO YOU SAY TO VC'S THAT HAVE A MANDATE TO JUST ALLOCATE A WOMAN OF COLOR, DIVERSE FOUNDERS MORE BROADLY? JOEY: PEOPLE ARE FIRED UP. WE NEED TO BE EDUCATED ABOUT THE LEGAL ISSUES AT HAND. IT IS WHAT WE HAVE BEEN FOCUSING OUR ENERGY BUT WE ALSO NEED TO BE PREPARED TO SPEAK UP AND STAND UP AGAINST THIS WATER BACK LASH TO DIVERSITY WITH IT IS VENTURE CAPITAL OR BUSINESS MORE BROADLY SO OUR ADVICE TO FIRMS IS TO CONTINUE DOING THE WORK.
IT IS ULTIMATELY HOW WERE GOING TO BRING ABOUT POSITIVE CHANGE. CAROLINE: ARE YOU SAYING ENOUGH INSTITUTIONS SPEAKING OF? -- SEEING ENOUGH SEDITIOUS PICKING UP? JOEY: THE INSTITUTIONS WE WORK WITH THEY HAVE BEEN VERY SUPPORTIVE OF INCREASING DIVERSITY BUT I DO THINK IT WILL BE GREAT FOR THE BUSINESSES COMMUNITY TO REMEMBER WHY THEY ARE INVESTING IN DIVERSITY EFFORTS MORE BROADLY CREATE SEVERAL OF THE ORGANIZATIONS WE WORK WITH, THEY MAKE INVESTMENTS INTERNALLY AND EXTERNALLY SOME MORE DIVERSITY AND OUR MESSAGE TO THEM IS PLEASE CONTINUE TO DOUBLE DOWN ON THAT. CAROLINE: JOEY MAK GREAT TO HAVE SOME TIME WITH YOU. CEO OF CHICAGO BLEND. COMING OF, WE TALK ABOUT CYBER. GM SAYS THE RECENT COMPUTER HACKED WILL COST IT BIG TIME. WE HAVE ALL THE DETAILS NEXT.
WE WERE DISCUSSING SOME OF THE REGULATORY BUT ON THE HIGHER SIDE TODAY UP .08. THEY WILL FOCUS ON THE SATELLITES. TWO TEST OF ITS ALLIES TO BE GOING INTO LOWER ORBIT TODAY ON A ROCKET AT 2:00 P.M. EASTERN TIME. FROM NEW YORK, THIS IS
BLOOMBERG "TECHNOLOGY." CAROLINE: AND GM AND IT IS JUST SAID THE RECENT COMPUTER HACKED THAT SHUT DOWN MANY SERVICES WILL REDUCED AS THIRD-QUARTER PROFIT IS A BOOK BY ABOUT $1 TRILLION -- BY ABOUT 100 MILLION DOLLARS. CYBERSECURITY INSURANCE SHOULD COVER MOST OF THE COST MGM SAID OTHER THE FULL IMPACT HAS BEEN YET TO BE DETERMINED.
TRYING TO ANALYZE ULTIMATELY THE COST FOR BUSINESSES. IN A MEDICAL ENVIRONMENT, COMPANIES RETICENT TO SPEND ON THINGS THEY FEEL EXTRA. SUB SECURITY ONE AREA THEY PULL BACK ON? DOES IT HURT THEM IN THE LONGER TERM? >> IF NOT SPENDING ENOUGH PREVENTIVELY, ABSOLUTELY. THERE'S A NUMBER, 10% OF YOUR TOTAL I.T.
SPEND IS WHAT ISSUE IT SPEND IS WHAT USUALLY RESERVED FOR YOU CYBERSECURITY SPENT ON MAKING SURE ALL THE THINGS YOU INTEGRATE INTO YOUR NETWORKING SYSTEMS HAVE THIS COMPONENT FOR CYBERSECURITY WHETHER THAT IS MONITORING THE DETECTION OR PREVENTION OF ONE ABILITIES, -- VULNERABILITIES TO COMBAT SUCH A INCIDENT. MOST COMPANIES ARE NOT DOING THAT PREVENTATIVE STUFF AND THEY WIND UP BEING CAUGHT OFF GUARD WHEN AN ACTUAL INCIDENT. CAROLINE: WE'VE HAD SO MANY HEADLINES.
CLOROX TRYING TO LAY BARE HOW MUCH THIS IS GOING TO COST THEM. IS THIS SOMETHING REGULATORS ARE TRYING TO EYE? JOEY: ABSOLUTELY. SEC PERSPECTIVE, THERE WAS A NEW DISCLOSURE FOR CYBER SECURITY INCIDENTS AND IT IS ABOUT REPORTING MATERIAL INCIDENTS WITHIN FOUR DAYS OF KNOWLEDGE OF THE COMPANY THEY OCCURRED AND THEY ARE MATERIAL. IT IS TO HELP SHAREHOLDERS MAKE BETTER DECISIONS ABOUT THE COMPANY THEY HAVE INVESTED IN. THIS IS REMARKABLY DIFFICULT TO DO FOR THESE COMPANIES. DETERMINING WHAT IS IMMATERIAL INCIDENT. IN THE FOG OF THE INCIDENT IT
IS HARD TO DO SO THE FOUR DAYS IS AN AMBITIOUS OPERATIONAL THING. WHILE YOU ARE DOING ALL OF THIS, RESPONSE TO AN INCIDENT, UNDERSTAND THE IMPACT AS WELL. IT IS GOING TO BE DIFFICULT. THE CLOROX EXAMPLE WOULD BE A POSTER CHILD FOR A LOT OF PEOPLE IN THE CYBERSECURITY INDUSTRY WRESTLING WITH THIS. CLOROX WILL REPORT A DECLINE IN PROFITS BECAUSE OF THE INCIDENT.
THEY COULD NOT STOP SALES WITH THE PRODUCTS AND WILL NEED TO REPORT TO SHAREHOLDERS WITH THE CONSEQUENCES OF THIS CYBERSECURITY INCIDENT. IT WAS THE SAME GROUP THAT ATTACKED MGM. CAROLINE: CAN YOU TALK ABOUT THE GROUPS? HOW AND WHAT ARE THEY BRINGING TO BEAR UPENDING CERTAIN COMPANIES? JAYA: THEIR OPPORTUNISTIC HACKERS WORKING TOGETHER WITH A RANSOMWARE GROUP FORMALLY ASSOCIATED WITH THE RUSSIANS AND WHAT THEY ARE CAUSING IS AN ENORMOUS AMOUNT OF IMPACT TO THESE COMPANIES TO GET THAT DATA RETICENT AND MAKE SURE THOSE OPERATIONS ARE LOGGED INTO THE RANSOM GETS PAID.
CAROLINE: A.I. IS MAKE UP IT VULNERABLE BUT GIVE THEM THE ARMOR THEY NEED TO BE ABLE TO PREVENT AGAINST SUCH ATTACKS. WHO'S WINNING OUT IN THIS RACE? JAYA: I THOUGHT THE DEFENDERS HAD A HUGE HEAD START. WE HAVE BEEN HAVING MACHINE
LEARNING TECHNIQUES IN A LONG TIME. THE ONLY TYPES OF A.I. ATTACKS WE ARE SEEING ARE SOMETHING CALLED DOMAIN GENERATING ALGORITHMS. HE SET UP A DOMAIN IN ORDER TO STOP DEFENDERS FROM FINDING OUT WHAT ALL THOSE PEOPLE DOMAINS ARE AND BLOCKING THEM.
THOSE WERE THE ONLY THINGS WE WERE SEEING AND NOW WE SEE WITH DARK BIRD, BETTER FISHING -- THE ADVANTAGE OF SLOWLY SLIPPING TOWARDS THE ADVERSARIES AND WE NEED TO MAKE SURE CYBERSECURITY COMPANIES ARE ADOPTING A.I. MEASURES IN THEIR PRODUCTS AND CONSUMERS ARE BUYING THOSE PRODUCTS. CAROLINE: HAVE CERTAINLY HEARD OTHER CEOS THE ONE AREA THEY'RE NEVER GOING TO SACRIFICE NO MATTER HOW MICROECONOMIC HEADWINDS IS THE CYBER ALLOCATION AND FOCUS ON PROTECTING CUSTOMERS AND EVERY STAKEHOLDER. IS IT SOMETHING YOU SEE TRUE OR HAVE YOU SEEN COMPANIES WORLDWIDE PULLBACK? WHAT IS YOUR ANSWER TO THAT? JAYA: YOU'RE SEEING A DECLINE IN THE AMOUNT OF APPETITE TO SPEND ON ALL TYPES OF I.T. THINGS INCLUDING SAARBRUECKEN SECURITY -- CYBERSECURITY. I WOULD LOVE IT TO BE TRUE BUT
I THINK YOU'RE SEEING BUT TO SHRINK AS THE IMPORTANCE OF THE ROLE TENDS TO INCREASE. GLOBALLY THE TREND IS NOT FAVORABLE FOR SECURITY WHEN YOU LOOK AT THE ACTUAL BUDGET CAPACITY OF THE CHIEF SECURITY OFFICERS. CAROLINE: ONE TO KEEP A KEEN EYE ON. GREAT STAFFER IN THE STUDIO. EGGS TESTING THE WATERS FOR THREE TIERS OF PREMIUM SERVICE ON THEIR PLATFORM. WE HAVE ALL THE DETAILS FOR YOU
AND SPEAKING OF ELON MUSK COMPANY WE ARE WATCHING THE SHARES OF TESLA, THE COMPANY HAS CUT PRICES ON HIS TOP-SELLING MODELS IN THE U.S. DAYS AFTER HIS THIRD-QUARTER DELIVERY MISSED ESTIMATES. THE CARMAKER MARKDOWN BASE MODEL THREE BY 1250 AND DISCOUNTED THE LONG-RANGE VERSION BY THE SAME AMOUNT AND ACTUALLY UP TO 2250 ON SOME OF THE MORE PREMIUM OFFERINGS THEY HAVE. CLEARLY GOING FOR SALES OVER PROFIT WITH TESLA. THIS IS BLOOMBERG "TECHNOLOGY."
CAROLINE: X IS GIVING THINKERS AN UPDATE ON EFFORTS TO REINVIGORATE GROWTH INTO THE PLATFORM. THE CEO SAYING IT IS TESTING THREE TIERS A PREMIUM SERVICE WHICH WOULD ALLOW THE COMPANY TO CHARGE CUSTOMERS DIFFERENT AMOUNT DEPENDING ON HOW MANY ADS ARE SHOWN. THIS COMES OUT AS THEY TRIED TO PERSUADE DEBTHOLDERS THEY'RE MANAGING TO GROW THE BUSINESS. >> EXACTLY. >> THE TAKEOVER OF TWITTER IT WAS EXTREMELY CHAOTIC. $44 BILLION. $13 BILLION IN DEBT SO THE
BANKERS THAT HELP FINANCE WANT TO SEE WHAT ARE THEY DOING TO MAKE MONEY ESPECIALLY AFTER ADVERTISING REVENUE DECLINED SO THAT IS WHERE THESE ADVERTISING TEARS COME IN. IT IS GOING TO BE FOR PREMIUM USERS SO PREMIUM WHICH USED TO BE CALLED TWITTER BLUE. YOU PAY FOR ADDITIONAL FEATURE SELECT EDIT YOUR POST. X IS TESTING THREE DIFFERENT TEARS.
SIMILAR TO THE WAY HULU AND NETFLIX OPERATES, THE MORE MONEY YOU PAID THE LESS ADS YOU SEE. CAROLINE: TALK ABOUT HOW THE ADVERTISERS ARE FEELING. JAYA: ONE OF THE THINGS X DID SAY ADVERTISERS ARE COMING BACK SO THEY SAID IN JUNE OF THEIR TOP ADVERTISERS, YOU THINK BIG NAMES 75% OF THOSE WERE BACK IN JUNE. THE NUMBER IS UP TO 90% BUT THEY ARE SPENDING LESS.
X ADMITTED THAT AND EVEN BY SOME SORT OF INDEPENDENT THIRD PARTIES, THEY ARE ESTIMATING IT IS ABOUT 70% LESS IN SOME CASES SO IT IS NOT WHERE IT WAS HISTORICALLY. ADVERTISING HAS MADE UP THE MAJORITY OF REVENUE FOR EGGS TRADITIONALLY ABOUT 80% OF THE REVENUE PER UNIT -- OF THE REVENUE. CAROLINE: IT IS NOT JUST DEBTHOLDERS, IT SEEMS LIKE REGULATORS -- THE UPDATE WAS GOING ON WITH THE SEC RIGHT NOW? >> GOING BACK TO CHAOTIC ME THINK ABOUT THE TAKEOVER. BEFORE HE ACQUIRED THE COMPANY, HE ACQUIRED A STAKE SO YOU HAVE ABOUT 9% STAKE IN TWITTER AT THE TIME.
WHEN YOU ACQUIRE OVER 5% STAKE YET DI -- YOU HAVE TO DISCLOSE THAT. HE DISCLOSED IT BUT DISCLOSE IT ABOUT ONE MONTH LATER. THE SEC BEGAN TO PROBE WHITE IT WAS LATE AND HE IS SUPPOSED TO TESTIFY LAST MONTH BUT A COUPLE DAYS BEFORE HE STARTED MAKING OBJECTIONS SAYING TO DO A DIFFERENT DATE OR LOCATION.
THEY TRYING TO COMPEL HIM TO PUSH THEM TO TESTIFY REGARDING THE TAKEOVER. CAROLINE: THE ATTORNEYS FROM ELON MUSK SAYING ENOUGH IS ENOUGH. THANKS SO MUCH FOR BRINGING US UP TO SPEED ON ALL THINGS X. THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. DO NOT FORGET TO CHECK OUT OUR PODCASTS. YOU CAN FIND IT ON THE
TERMINAL. WE HAVE A BIG QUAKE AS WE TURN TO L.A.
2023-10-11 13:42
