Tech Stocks Jump and Musk Pitches Himself to Trump | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION AND MONEY COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS "BLOOMBERG TECHNOLOGY." COMING UP, TECHNOLOGY STOCKS JUMP ON COOLING INFLATION, BUT STRATEGISTS STILL SEE A RISK OF A SELLOFF. WE DISCUSSED. ED: ELON MUSK PITCHES HIMSELF AS GOVERNMENT SPENDING CZAR WITH FORMER PRESIDENT TRUMP. CAROLINE: GOOGLE'S GADGET GAME. WE DISCUSSED THE SEARCH GIANT'S LATEST HANDSETS. LET'S CHECK IN ON THESE MARKETS. UP WHEN IT COMES TO THE NASDAQ.
WHY? COOLING INFLATION. TOMORROW WE HAVE ALL EYES ON CPI, AND WE ARE MANAGING TO CRESCENDO UP MORE THAN 515% OVER THE COURSE OF THE LAST FOUR TRADING DAYS. WHAT OF THE STOCKS THAT DRIVE US HIGHER? ED: THESE ARE THREE NAMES THAT HAPPEN TO BE THE BIGGEST POINTS DRIVERS ON THE NASDAQ. WE WILL TALK ABOUT THE FOCUS ON EV'S. ALSO TAKING A LOOK AT NVIDIA. ON TRACK FOR ITS BIGGEST TO JUMP SINCE LATE MAY. I DON'T THINK WE CAN TALK
ENOUGH ABOUT THIS, EVEN THOUGH EARNINGS ARE SO FAR AWAY. AND THEN STARBUCKS. STARBUCKS IS NOT NECESSARILY A TECHNOLOGY COMPANY. THE AAA CEO HAS BEEN BROUGHT IN. MAYBE THERE IS A DIGITAL STORY THERE, BUT IT IS THE BIGGEST POINTS HAVING GAINER ON THE NASDAQ, AND ON SOCIAL MEDIA STARBUCKS IS WHAT EVERYONE IS TALKING ABOUT AS WELL. 22% ON A NEW CEO. INTERESTING. CAROLINE:
LET'S GET BACK TO OUR CORE OF TECH STOCKS. THEY ARE JUMPING BUT THERE IS THIS MORNING FROM CITIGROUP THAT CAN OUR EYE. STOCKS COULD COME UNDER SIGNIFICANT PRESSURE ON NEGATIVE ECONOMIC DATA. INVESTOR POSITIONING REMAINS EXTENDED ON THE BULLISH SIDE SPITE THE PAST MONTH'S SELLOFF. FOR MORE LET'S BRING IN CALLIE COX. IT IS INTERESTING.
CITIGROUP IS POINTING OUT THIS GROUP OF LONG POSITIONS STILL OUT THERE, CHECKING THE FUTURES ON THE NASDAQ. WHY ARE WE STILL SEEING THESE LONG THAT'S? ARE THEY RIGHT TO BE AT THE MOMENT? CALLIE: SURE. I THINK WE AGREE WITH CITIGROUP THERE.
TECH STOCKS HAVE HAD A STELLAR YEAR, MINUS THE LAST MONTH. WITH SO MANY ECONOMIC CONDITIONS CHANGING, WITH THE EXPECTATIONS FOR INTEREST RATES CHANGING WE THINK THERE COULD BE VOLATILITY THERE, JUST BECAUSE TECH HAS BEEN A VICTIM OF ITS OWN SUCCESS. CAROLINE: DO PEOPLE REPOSITION? THE MAGNIFICENT SEVEN, HOW DO YOU REPOSITION THAT? SHOULD YOU? CALLIE: WE ARE A BIG BELIEVER IN TECH. IT IS HARD NOT TO BE, BUT WE ALSO BELIEVE IN RISK AND MANAGING A PORTFOLIO THAT HELPS YOU GET FROM POINT A TO POINT A. WE HAVE BEEN TALKING ABOUT CLIENTS IS REBALANCING OUT OF TECH. SELLING THOSE SHARES THAT HAVE DONE SO WELL THIS YEAR AND LOOKING AT SMALLER STOCKS, MID-CAP STOCKS, AND RATE-SENSITIVE SECTORS OUTSIDE OF TECH. ED: I DON'T APOLOGIZE FOR THIS.
WE WERE SHOWING SHARES OF NVIDIA EARNINGS AUGUST 28, HOW ANXIOUS A PERIOD OF TIME WILL IT BE FOR A FINANCIAL MARKETS UNTIL THAT EARNINGS PRINT? CALLIE: WHY APOLOGIZE ABOUT THAT? I THINK THAT IS ON INVESTORS' MINDS RIGHT NOW. NVIDIA SHOWS THAT IT CAN BEAT ANY KIND OF EXPECTATION YOU PUT OUT THERE OVER AND OVER AGAIN. IT IS REALLY THE HOT STOCK WHEN IT COMES TO FUNDAMENTALS WITHIN THE TECH SECTOR. BARS A LITTLE BIT HIGHER. THE BAR IN GENERAL HAS BEEN
HIGHER FOR TECH EARNINGS, BUT THE AI STORY IS QUITE REAL. I THINK MY QUESTION IS, WHAT KIND OF GUIDANCE ARE WE GOING TO GET OUT OF NVIDIA? HOW ARE INVESTORS GOING TO DIGEST AN EARNINGS ESTIMATE BEAT IF DAD DIED IN SCUMS ON THE BACKEND? I THINK THE AI STORY IS COMPLICATED RIGHT NOW. IT HAS LOST A LITTLE BIT OF ITS LUSTER. ED: YOU ARE PROBABLY IN THE CAMP OF INVESTORS THAT LOOK AT THE TECHNOLOGY SECTOR, PARTICULARLY CYCLICAL AREAS, AND SAY GROWTH CYCLES COME AND GO. I GET THAT, BUT WHAT IF THE GROWTH CYCLE GOES WITH NVIDIA? IT IS NOT LIKE JEN-HSUN HUANG TO GIVE A MODEST OUTLOOK, I GUESS, IS THE LESSON WE HAVE LEARNED SO FAR. BUT THERE IS A SCENARIO WHERE ACTUALLY THINGS HAVE SLOWED DOWN. CALLIE:
IT IS A GREAT QUESTION. I HAVE TO REMIND PEOPLE THAT NVIDIA IS ONE PLAYER IN THE SEMICONDUCTOR SECTOR. OBVIOUSLY IT'S FUNDAMENTALS HAVE BEEN GOOD, BUT WE STILL DON'T KNOW WHO THE WINNER IS WHEN IT COMES TO THE AI STORY.
AND WE COULD SEE OTHER CHIPMAKERS TAKE SOME OF THAT MARKET SHARE AWAY FROM NVIDIA. I THINK IF JEN-HSUN HUANG DOES SAY THAT GROWTH IS NOT AS GREAT AS WE ARE SEEING, OR GROWTH HAS NOT BEEN AS GREAT AS WE HAVE SEEN IN THE PAST, I THINK INVESTORS COULD GET WORRIED THERE, AND THAT IS A REASON WHY YOU SHOULD REBALANCE SOME MONEY OUT OF TECH. THE EXPECTATIONS FOR THE TECH SECTOR ARE SO HIGH RIGHT NOW THAT IT IS HARD TO SEE TECH BEATING THOSE FOR A WHILE. CAROLINE: IT IS INTERESTING THAT WHILE WE HAVE ONE SIDE OF CITIGROUP'S MOUTH SAYING, WE ARE THINKING WE HAVE BIG EXPOSURE TO A DOWNSIDE RISK IF WE GET WORRYING ECONOMIC DATA, ON THE OTHER CITED THEIR MOUTH THEY ARE SPEAKING ABOUT CITIGROUP BASICALLY BUYING THE DIP, AND CHIP NAMES IN PARTICULAR.
THEY ARE THINKING MAYBE SOME KEY NAMES COULD BE BROADENING OUT. YOU LOOK HISTORICALLY OTHER BANKS HAVE SHOWN THAT WE HAVE HAD FOUR QUARTERS OF AN UP CYCLE FOR CHIPS, BUT USUALLY LOST ABOUT 10 QUARTERS. HOW DO YOU REMAIN EXPOSED WITHOUT KEEPING BETTING ON THE SAME NAMES? HOW DO YOU TAKE PROFIT BUT STILL DIVERSIFY WITHIN TECHNOLOGY? CALLIE: YOU DO IT CAREFULLY.
FOR ANY CONVERSATION ABOUT REBALANCING YOU HAVE TO REALIZE WHAT YOUR TIME HORIZON IS. IF YOU ARE LOOKING AT A FIVE TO 10 YEAR HORIZON AND EXCITED ABOUT AI, ANY SELLOFF WE SEE IN THE TEXT THERE COULD BE AN OPPORTUNITY FOR YOU. YOU JUST HAVE TO POTENTIALLY WAIT IT OUT A LITTLE BIT. IN TERMS OF REBALANCING, WE LIKE SLOW AND STEADY. MAYBE SELLING A LITTLE BIT HERE AND THERE. VISITING YOUR TARGETS WHEN IT COMES TO SINGLE SPOT -- SINGLE STOCKS YOU ARE OWNING AN UNDERSTANDING THERE IS A RUN -- THERE IS A MARKET OUTSIDE OF TECH AND EXCITING STORIES IN OTHER SECTORS. I KNOW WE ARE ON THE TECH SHOW
RIGHT NOW. CAROLINE: NOTHING ELSE MATTERS. CALLIE: NOTHING ELSE MATTERS. BUT OVER THE NEXT YEAR OR SO WE COULD SEE SOME OTHER STOCKS TAKE LEADERSHIP, AND IN FACT WE ARE ALREADY SEEING THAT. ED: HERE ON "BLOOMBERG TECHNOLOGY,"
I LIKE TO ASK ABOUT THE FED. AFTER PPI THIS MORNING WHAT IS THE CALL ON WHAT THE FED DOES? BECAUSE AS WE SAY ON THIS SHOW, HIGHER RATES, DISCOUNT, FUTURE CASH FLOWS WHEN YOU ARE A TECHNOLOGY INVESTOR, THAT IS IMPORTANT. CALLIE: THE FED LOOKS LIKE IT IS GOING TO HAVE TO CUT IN SEPTEMBER. PPI DATA CONFIRMED THIS THIS MORNING. WE SAW QUITE A DROP IN SERVICES PPI, OR SLOWING DOWN IN SERVICES PPI. THAT USED STORY FOR INFLATION
GETTING LOWER AND LOWER AND CLOSE TO THE FED'S TARGET. IF THE FED DOES START CUTTING RATES WE COULD SEE INVESTORS' BEHAVIOR CHANGE. I WILL BE HONEST. TECH STOCKS ARE GROWTH STOCKS, BUT I THINK THAT THERE ARE A LOT OF FLAVORS IN THE TECH INDUSTRY AND INVESTORS ARE LOOKING AT THEM QUITE DIFFERENTLY. IF WE SEE GROWTH MAINTAINED BUT
WE SEE RATES COME DOWN, I ACTUALLY THINK THIS ROTATION COULD CONTINUE. THIS ROTATION INTO SENSITIVE RATE SECTORS. YOU HAVE TO REMEMBER, IF WE DO HIT A ROUGH PATCH SOME OF THE STRONGEST STOCKS ON THE MARKET ARE TECH STOCKS. INVESTORS COULD LOOK AT THOSE AS A RECESSION TRADE OF SORTS. ED:
WE'VE GOT ALL OF THE FLAVORS OF TECHNOLOGY HERE. TAKE YOUR PICK. CALLIE COX, CHIEF MARKET STRATEGIST AT RITHOLTZ MANAGEMENT. ELON MUSK SAT DOWN WITH DONALD TRUMP FOR A WIDE-RANGING INTERVIEW WHICH HE CALLED MORE OF A CONVERSATION LAST NIGHT. WE WILL DISCUSS. THIS IS BLOOMBERG.
♪ >> I THINK IT WOULD BE GREAT TO HAVE AN EFFICIENCY COMMISSION THAT TAKES A LOOK AT THESE THINGS AND JUST ENSURES THAT THE TAXPAYER MONEY, THE TAXPAYERS' HARD-EARNED MONEY IS SPENT IN A GOOD WAY. AND I WOULD BE HAPPY TO HELP OUT ON SUCH A COMMISSION. >> I WOULD LOVE IT. YOU, YOU ARE THE GREATEST CUTTER. ED: THAT WAS ELON MUSK, TAKING THE OPPORTUNITY TO PITCH HIMSELF OR ROLL IN A SECOND TRUMP ADMINISTRATION ON LAST NIGHT'S EVENTFUL SPACES WITH THE FORMER PRESIDENT.
MAX CHAFKIN JOINS US NOW. THERE IS SO MUCH TO RECAP. FOR ME, THAT WAS IN CONTEXT OF AN ELECTION CYCLE IMPORTANT, THIS IDEA THAT ELON MUSK WOULD HAVE A ROLE IF TRUMP WERE TO BE REELECTED, AND MUSK WAS ALSO AT PAINS TO CLARIFY HIS OWN POLITICS. YOU TUNED IN FOR MANY HOURS AS WELL. LET'S START THERE. MAX: NEARLY THREE HOURS LONG WITH A DELAY. THERE WERE LONG TECHNICAL DIFFICULTIES THAT CAUSED IT TO START LATE.
WHAT I HEARD WAS MOSCA BEING DEFERENTIAL TO TRUMP IN A WAY THAT IS UNUSUAL FOR HIM. HE IS A COMBATIVE GUY. NOT ONLY WAS HE ASKING FOR A JOB, HE WAS NODDING ALONG DOING LENGTHY SESSIONS WHERE TRUMP WAS SEEMING TO DOWNPLAY CLIMATE CHANGE. MUSK HAS A LOT TO POTENTIALLY GAIN HERE BEYOND POTENTIAL EMPLOYMENT. TESLA AND SPACEX BOTH HAVE A LOT TO GAIN BY A FRIENDLY REGULATORY ENVIRONMENT. BOTH IN TERMS OF SUBSIDIES, GOVERNMENT CONTRACTS, AS WELL AS POTENTIAL REGULATION OR LACK THEREOF OF THINGS LIKE THE POTENTIAL ROBOTAXI. CAROLINE:
LET'S GO INTO THAT AWKWARDNESS AROUND CLIMATE CHANGE AND THE FACT THAT HE CALLS HIMSELF -- WELL, YOU CAN BE AN ENVIRONMENTALIST. YOU CAN STILL DO GOOD FOR THE PLANET BUT NOT HAVE TO SACRIFICE AN ULTIMATELY GREAT CAR WAS HIS PITCH TO A NEW AUDIENCE. MAX: THAT HAS BEEN MUSK'S PITCH FOR SOME TIME. ALMOST FROM THE BEGINNING. WHAT WAS DIFFERENT WAS HIS WILLINGNESS TO GO ALONG WITH THE IDEA THAT CLIMATE CHANGE IS NOT EXISTENTIAL. BACK DURING THE EARLY DAYS OF TESLA, AND ESPECIALLY DURING THE OBAMA YEARS, MUSK WOULD EMPHASIZE THAT THE PLANET IS RUNNING OUT OF OIL, THAT CLIMATE CHANGE IS A BIG PROBLEM. TRUMP DURING THIS SPACE SAID, WE HAVE 500 YEARS BEFORE WE RUN OUT OF OIL. CLIMATE CHANGE IS NOT THAT BIG
A DEAL. THESE ARE ALL THINGS THAT IN AN EARLIER TIME WOULD HAVE SET ELON MUSK OFF. HE HAS NAVIGATED TO A SLIGHTLY DIFFERENT POSITION. A POSITION THAT IS MUCH MORE ACCOMMODATING OF RIGHT-WING SKEPTICISM OF MAN-MADE CLIMATE CHANGE. ED: ELECTRIC VEHICLES WERE DISCUSSED.
I WANT TO BRING SOME NEWS TO OUR AUDIENCE THAT IN RESPONSE TO THE SPACES LAST NIGHT THE UAW, THE UNITED AUTO WORKERS UNION, FILED A LABOR COMPLAINT, A PRACTICE CHARGE AGAINST TRUMP AND MUSK. I'M SUMMARIZING, BUT THEY BASICALLY SAID THAT DURING THE COURSE OF THAT CONVERSATION THE TWO MEN ILLEGALLY INTIMIDATED UNION WORKERS. MUSK 30 SECONDS AGO RESPONDED ON X, WHICH WE WILL SHOW IN A SECOND. COMBINE ALL OF THAT, PLEASE.
THE NEWS THAT WAS SAID ABOUT IBIZA AND UNIONIZED WORK -- ABOUT EV'S AND UNIONIZED WORK. MAX: TRUMP SAID, YOUR WORKERS ARE THREATENING TO GO ON STRIKE AND YOU JUST LET THEM GO. THE UAW HAS CUT AN AD ABOUT THAT. THIS COULD BECOME POLITICALLY DIFFICULT FOR TRUMP, WHO IS TRYING TO CATER TO WORKING-CLASS VOTERS IN SWING STATES.
ESPECIALLY IN THE MIDWEST, WHERE UNIONS HOLD SWAY, AND AT TIMES HE SEEMED TO MAKE UP SOME GROUND. OF COURSE, IT COULD BE AN ISSUE FOR ELON MUSK. THE UAW IS TRYING TO UNIONIZE ELECTRIC VEHICLE MANUFACTURERS. ALTHOUGH IT DOESN'T SEEM LIKE IT HAS MADE A TON OF PROGRESS YET. CAROLINE: WE KNOW WHAT WE DID HERE AROUND EV'S AND, AS YOU SAID, BASICALLY A COZYING UP OF MUSK TO TRUMP.
WHAT WE DID NOT HEAR WAS ANYTHING ABOUT CRYPTO. DID THAT SURPRISE YOU? MAX: IT IS SURPRISING IN THE SENSE THAT ELON MUSK HAS EXPRESSED AFFINITY WITH THE CRYPTO COMMUNITY. THERE IS A LOT OF OVERLAP BETWEEN FANS OF ELON MUSK AND FANS OF BITCOIN. BUT ELON MUSK HAS NEVER TOTALLY BEEN A CRYPTO GUY. HE IS SOMEBODY WHO CAN GRAFT HIMSELF ONTO A POPULAR MOVEMENT.
IN THAT SENSE, NO, BUT WHAT WE DID HERE WAS A PITCH FOR THE BOEING COMPANY -- BORING COMPANY, AS WELL AS MUSK SUGGESTING HE MIGHT BE OPEN TO EXPANDING THE COMPANY'S OPERATIONS. AS WELL AS THIS KIND OF MORE MUTED PRAISE, ALMOST BACKHANDED COMPLIMENT FOR TESLA'S CARS. TRUMP SAYING, THEY ARE GOOD, BUT NOT EVERYONE NEEDS AN ELECTRIC VEHICLE. CAROLINE: THE NUANCES THERE. MAX CHAFKIN, WE THANK YOU. AS WE REFERENCED AT THE
BEGINNING, THERE WERE SOME TECHNICAL GLITCHES LAST NIGHT. MUSK BLAMED THE DELAY ON A CYBERATTACK. AND THEN WHEN THE EVENT STARTED WENT ON TO SUGGEST THAT TRUMP'S OPPONENTS ARE RESPONSIBLE. >> WE UNFORTUNATELY HAD A MASSIVE DISTRIBUTED DENIAL OF HIS SERVICE ATTACK AGAINST OUR SERVERS.
THIS MASSIVE ATTACK ILLUSTRATES THERE IS A LOT OF OPPOSITION TO PEOPLE JUST HEARING WHAT PRESIDENT TRUMP HAS TO SAY. CAROLINE: LET'S GET AN EXPERT, BRIAN PALMA. DID THIS SEEM LIKE IT WAS A CYBERATTACK? BRIAN: IT IS POSSIBLY A DISTRIBUTED DENIAL OF SERVICE ATTACK, WHICH IS AN ATTEMPT TO DISRUPT THE SERVERS.
THAT IS ONE POSSIBILITY. THERE ARE A LOT OF REASONS WHY THE SYSTEM COULD GO DOWN. I DON'T HAVE ANY INSIGHT DIRECTLY, BUT IT IS A POSSIBILITY. ED: A SENIOR SOURCE LAST NIGHT TOLD ME THAT IT WAS DEFINITELY A DD OS ATTACK, BUT THE VERGE REPORTED CITING UNNAMED STAFFERS THAT IT WAS NOT A DD OS ATTACK. REGARDLESS, WHAT DID IT TELL YOU ABOUT THE STRENGTH OR FRAGILITY OF X'S SECURITY AND SYSTEMS? BRIAN: I WOULD NOT SPECULATE ON WHETHER IT WAS OR WASN'T. WHAT I CAN TELL YOU IS THAT AROUND ELECTION TIME 50% OF THE WORLD IS GOING TO HAVE ELECTIONS THIS YEAR.
BUT WE DO KNOW IS THAT DISTRIBUTED DENIAL OF SERVICE ATTACKS ARE ON THE RISE AND USED TO DISRUPT CAMPAIGNS, THEY ARE USED TO DISRUPT ELECTIONS. I DON'T HAVE ANY DETAILS ON THE INVESTIGATION WHY THIS PARTICULAR INCIDENT HAPPENED AT ASK -- X. CAROLINE: YOUR JOB IS TO MAKE SURE WEBSITES REMAIN IMPENETRABLE. I WONDER IF THIS CAN BE A CASE, BECAUSE THIS IS NOT THE FIRST TIME WE HAVE SEEN SOME REALLY AWKWARD, EMBARRASSING DELAYS TO CERTAIN SPACES. I'M WONDERING WHAT COULD HAVE BEEN DONE TO PREVENT A DENIAL OF DISTRIBUTION SERVICE ATTACK OCCURRING AT THIS PARTICULAR WAY. BRYAN: THESE ATTACKS ARE VERY SERIOUS. THEY HAPPEN AT SCALE.
THEY HAPPEN A LOT OF DIFFERENT WAYS. THEY CAN HAPPEN THROUGH VOLUME, I JUST SENDING SO MANY PACKETS, AND BY USING BOTNETS AND ZOMBIES. THESE CAN BE VERY POWERFUL AND MANY COMPANIES HAVE SUFFERED. ON JULY 30, THE AZURE PLATFORM SUFFERED AN ATTACK AND WAS DOWN FOR ABOUT SIX HOURS. THAT IMPACTED THE STARBUCKS APP
AND OUTLOOK, AND MINECRAFT. SOME OTHER THINGS AS WELL. THESE ATTACKS ARE PRETTY SOPHISTICATED. ESPECIALLY WHEN THEY ARE BEING PLAYED OUT BY ADVERSARIES WHO SKILLED. ED: THE FBI SAID IT IS INVESTIGATING ALLEGATIONS MADE BY THE TRUMP CAMPAIGN TEAM ABOUT DOCUMENTS ACCESSED FROM THE CAMPAIGN DURING AN ATTACK IN THE LAST WEEK OR SO. HAVE YOU FOLLOWED THAT CASE STUDY, AND WHAT DO YOU MAKE OF IT? BRYAN: I HEARD THE REPORTS. I THINK WHAT WE HAVE TO DO IS LET THE FBI DO THEIR WORK. THEY HAVE SOME GREAT CYBER
PROFESSIONALS WHO ARE GOING TO DO AN INVESTIGATION. AGAIN, WE KNOW THAT IN AN ELECTION SEASON ALL ELECTIONS, WE SELL RECENTLY IN FRANCE THERE WAS AN ATTACK LAUNCHED BY ACTIVISTS -- HACKTIVISTS. I WILL BE INTERESTED TO SEE WHAT THE FBI UNCOVERS. CAROLINE: WE ARE ALSO FRESH IN OUR MIND ON HOW OUR FLIGHTS GOT PUT ON ICE A FEW FRIDAYS AGO BECAUSE OF A CLOUD STRIKE ISSUE.
WHEN THAT HAPPENED ELON MUSK WENT ON TO ASK AND SAID, HE HAS DITCHED CROWDSTRIKE. I'M INTERESTED YOU SAID AT THE TIME, YOU TOLD BLOOMBERG THAT YOU UNDERSTAND WHY, AND THAT YOU WELCOME TESLA CEO AS A CUSTOMER. HAVE YOU BEEN APPROACHED BY ELON MUSK? BRYAN: I HAVE NOT TALKED TO HIM AT ALL, BUT OBVIOUSLY WE ARE A LEADER IN CYBER SECURITY, AND IF THEY NEED SOME HELP MY OFFER STANDS. WE WILL DO WHATEVER WE CAN TO HELP OUT X. ED: BRYAN PALMA, CEO OF TRELLIX,
THANK YOU. INVESTORS HOPE GOOGLE CAN SAVE ITSELF FROM ITS NEARLY THREE HAD $60 BILLION ROUT. WITH A SMART PHONE. WHAT TO EXPECT FROM GOOGLE'S
PIXEL EVENT. THIS IS "BLOOMBERG TECHNOLOGY." CAROLINE: TIME NOW FOR TALKING TECH. A POLISH BILLIONAIRE TAKES AIM AT DEEPFAKES HOLDING MEHTA ACCOUNTABLE FOR FAKE ADS ON ITS PLATFORM. THE FOUNDER AND CEO WON AN INJUNCTION, TEMPORARILY BANNING META FROM USING FAKE ADS USING THE IMAGE OF HIM AND HIS WIFE. HE IS NOW WAITING ON A SIMILAR ORDER IN EUROPE. SINGAPORE'S SEA LIMITED RAISES ITS OUTLOOK ON STRENGTH.
THE COMPANY IS SAYING THEY EXPECT SALES OF GOODS TO RISE IN THE MID-20% RANGE. SECOND QUARTER PROFIT AND SALES ALSO TOPPED ANALYST ESTIMATES. INVESTORS ARE ANXIOUSLY AWAITING OFF A BIT'S GOOGLE PIXEL EVENT TODAY. THE TECH GIANT IS SET TO DEBUT NEW HARDWARE AND SOFTWARE. TRADERS ARE HOPING THE INTRODUCTION OF NEW AI FEATURES TO THE PIXEL PHONES COULD HELP STOP WHAT HAS BEEN A MASSIVE SELLOFF.
IT HAS WIPED OUT 360 BILLION DOLLARS IN VALUE IN ONE MONTH. ED: THIS IS WORTH TALKING ABOUT AND THINKING ABOUT WHAT WE CAN EXPECT FROM THE EVENT. WE HAVE THIS PIE CHART, AND IT TELLS THE STORY OF WHERE THE PIXEL, OR HANDSET SALES, SIT WITHIN THE BIGGER PICTURE OVER THE LAST FOUR QUARTERS. WRINKLY, THE ANSWER IS, THEY ARE A SMALL PERCENTAGE OF REVENUE. WHY IS SUCCESS WITH THE PIXEL IMPORTANT? >> IT REALLY HAS TO SHOWCASE THE SOFTWARE.
THE HARDWARE DOESN'T MATTER, BECAUSE MOST OF THE PHONES IN THE WORLD ARE ANDROID PHONES AT THE END OF THE DAY. IF GOOGLE CAN SHOWCASE WHAT GEMINI CAN DO, IT CHANGES THE THE NARRATIVE -- THE NARRATIVE FOR HIGH-END SAMSUNG PHONES. THIS IS SOMETHING THAT APPLE HAS TO DEAL WITH NEXT MONTH. CAROLINE: WHAT IS INTERESTING IS THE FACT THAT THAT TIE UP BETWEEN OPENAI AND APPLE IS DELAYED. AND HOW MUCH, THEREFORE, HOW MUCH OF A BOON TO GOOGLE IS IT THAT THEY BASICALLY HAVE THEIR OWN UNDERLYING LARGE LANGUAGE MODELS? ANURAG: AT THE END OF THE DAY PEOPLE ARE NOT OWING PHONES SO QUICKLY OR MOVING AROUND BECAUSE OF ONE LARGE LANGUAGE MODEL OR THE OTHER. BUT THIS IS A FIGHT BETWEEN THE TWO BIGGEST LARGE LANGUAGE MODELS OUT THERE. ONE IS OPENAI. THE OTHER IS GOOGLE'S GEMINI.
AT THE END OF THE DAY GOOGLE HAS SHOWCASE THAT THEY ARE CLOSER TO OPENAI AND THESE TYPES OF EVENTS ARE A CHANCE FOR THEM TO SHOWCASE THAT. AT LEAST WHEN IT COMES TO ON-DEVICE. ED: LET'S FOCUS ON THAT. BLOOMBERG INTELLIGENCE HAS DONE DEEP ANALYSIS INTO GENERATIVE AI . WHAT IS THE FUTURE OF USING GENERATIVE AI TOOLS OR SMALLER MODELS? ANURAG: IT REALLY MAKES IT THE HYPER CUSTOMIZATION OF SMARTPHONES, WHERE YOUR SMARTPHONE BEHAVIORS GOING TO BE VERY DIFFERENT THAN MINE. YOU CAN DO A LOT OF THINGS THAN AN ASSISTANT WOULD HELP YOU DO.
ANYWHERE FROM BOOKING TICKETS TO ONLINE MAPS. ALL OF THOSE THINGS, BUT YOU REQUIRE SOMETHING ON THE DEVICE. BOTH OF THESE COMPANIES ARE CHAMPIONING THAT THEY WILL BE THE FIRST ONES TO ACHIEVE IT. NOW, APPLE IS GOING TO LAUNCH A NEW PHONE. THEY HAVE A LOT TO CATCH UP. ED:
ANURAG RANA, THANK YOU SO MUCH. WE ARE GOING TO BE JOINED BY GIL SIMON, CHIEF INVESTMENT OFFICER AT SOMA EQUITY PARTNERS, TO TALK UP TECH. THIS IS "BLOOMBERG TECHNOLOGY." ED: WELCOME BACK TO "BLOOMBERG TECHNOLOGY."
ED LUDLOW IN SAN FRANCISCO. CAROLINE: I'M CAROLINE HYDE IN NEW YORK. A QUICK CHECK ON THESE MARKETS. FOUR-STRAIGHT DAYS OF GAINS. WE ARE MANAGING TO SEE, ONCE AGAIN, A BIT OF A RISK-ON ATTITUDE TO THE MARKET AFTER LAST WEEK'S TURMOIL. BUT BOND MARKETS GETTING A IT AS WELL. 2-YEAR YIELDS OFF BY ABOUT SIX BASIS POINTS. WHY'S THAT?
THE PPI PRINT. INFLATIONARY DATA IS GIVING US THE COMFORT THAT INFLATION IS BEING TAMED. DOES THAT MEAN FOR CPI PRINT TOMORROW? WHAT DOES IT MEAN FOR THE ECONOMIC REACTIONS WE ARE SEEING? WEAVING ONTO THE INDIVIDUAL MOVERS FOR A MOMENT.
ON THE MICRO SIDE OF THINGS WE ARE LOOKING AT NVIDIA ON THE HIGH SIDE. ALL EYES ON EARNINGS, BUT WE ARE SEEING A BY THE DEPTH MOMENT. BROADCOM UP MORE THAN 3%. WE ARE SEEING SOME FILINGS COME OUT. LOOKING AT TESLA, WE ARE UP MORE THAN 4%. SOME FIGHTING TALK COMING FROM THE OVERALL ASSOCIATION THAT FOCUSES IN ON THE UNITED WORKERS FOR AUTOMOBILES, SAYING WE DON'T LIKE WHAT WAS SAID BETWEEN TRUMP AND MUSK YESTERDAY ON THAT SPACES. BUT WE ARE SEEING TESLA GETTING A BID. MAYBE REPUBLICANS ARE GOING TO
BE BUYING EV MORE. ED: LET'S GET INTO IT WITH GIL SIMON OF SOMA EQUITY PARTNERS, WHICH MAKES CONCENTRATED LONG AND SHORT THAT'S ON TECH, MEDIA, AND TELECOM COMPANIES. I AM ALSO JOINED BY BLOOMBERG'S HEMA PARMAR. COME TO THE SAN FRANCISCO STUDIO. I WANT TO START WITH AI BROADLY, BECAUSE IT IS WHAT EVERYONE IS TALKING ABOUT.
YOU HAVE THIS THESIS THAT IN TERMS OF HER EARNINGS REVISIONS OR SOMETHING TANGIBLE THAT ALL OF THE INVESTMENTS WERE WORTH IT, THAT SHOWS UP IN HARDWARE NAMES. I DON'T SEE TOO MANY HARDWARE NAMES THAT YOU ARE HOLDING. GIL: OUR FOCUS HAS BEEN, HISTORICALLY, ON SOFTWARE AND INTERNET COMPANIES. THAT IS PRIMARILY OUR SOURCES OF DIFFERENTIATION HAVE BEEN, AND TERMS OF OUR OWN RESEARCH AND EXPERIENCE.
ONE OF THE THINGS THAT WE HAVE FOUND DIFFICULT IS JUST WITH THE PREDICTABILITY OF THE EARLY AI INVESTMENT WAVE. WE ARE LOOKING FOR DURABLE BENEFICIARIES OF A HIGH. WE THINK WE HAVE FOUND MANY, AND BOTH THE INFRASTRUCTURE AND APPLICATION LAYERS. UNFORTUNATELY IT IS A MESS, LIKE NVIDIA. YOU THINK IT IS DIFFICULT TO PREDICT JUST HOW THEIR FUNDAMENTALS PLAY OUT OVER THE NEXT COUPLE OF YEARS. WE ARE HAPPY WITH OUR STRATEGY AND FOCUSING ON WHAT WE KNOW BEST.
>> ONE COMPANY YOU INVESTED IN IS RIVIAN. THIS IS A STOCK THAT HAS BEEN UNDER PRESSURE THIS YEAR. DO YOU THINK OVER TWO YEARS, $50 A SHARE? EXPLAIN TO US YOU BULLISHNESS ON THIS COMPANY AND HOW MUCH OF IT IS RIDING ON THIS DEAL WITH VOLKSWAGEN. GIL: THAT IS A GREAT QUESTION. A LOT OF THE CONVERSATION THIS
MORNING HAS BEEN ON ELON AND EV'S. THE MARKET HAS STARTED TO LOOK AT TESLA AS THE ONLY REAL WINNER IN EV'S IN THIS COUNTRY. THERE ARE SOME CHINESE COMPANIES THAT ARE SUCCESSFUL AS WELL. BUT WE HAVE TAINTED ANY OTHER SECONDARY PLAYERS IN EV'S INTO THIS, YOU KNOW, DUSTBIN OF UNLIKELY, UNVIABLE COMPANIES.
WE THINK RIVIAN IS EMERGING INTO ITS PROMISE AS BEING THE NUMBER TWO PLAYER AFTER TESLA IN THE WEST. SO, THIS DEAL THEY ANNOUNCED WITH VOLKSWAGEN, ABOUT SIX WEEKS AGO, WE THINK IS A MASSIVE VALIDATION. RIVIAN IS ONLY A 5 BILLION MARKET CAP. COMPARE THAT WITH TESLA AT ALMOST $800 BILLION. BEING HERE IN SAN FRANCISCO WE SEE A LOT OF RIVIANS.
IT IS REMINISCENT OF ONE TESLA STARTED GETTING TRACTION WITH THE MODEL AS. RIVIAN'S ROADMAP IS VERY MUCH FOLLOWING IN TESLA'S FOOTSTEPS, GOING FROM SELLING 00,000, HIGH-PRICED CARS TO A MASS-MARKET, AND THE R2 AND ARE THREE MODELS, WHICH RIVIAN ANNOUNCED OUR COMING IN 2026. ED: I'M GOING TO JUMP IN HERE. THE VW DEAL WAS BIG.
I HAVE WRITTEN THAT RJ HAS BEEN SO TO SPEAK, AN UNRELIABLE BOYFRIEND. MERCEDES DEAL DID NOT LAST LONG. FOUR NEVER MATERIALIZED. RIVIAN CANNOT DO IT ON ITS OWN. IS THAT FAIR? GIL: I THINK IT IS DIFFERENT. THE LEGACY CAR INDUSTRY IS REALLY STRUGGLING WITH THE TRANSITION TO MODERNIZING THEIR VEHICLE PRODUCTION. THERE IS A COUPLE OF ASPECTS OF THAT. ONE IS LEGACY CAR COMPANIES ARE GOOD AT A COUPLE OF THANKS.
THEY ARE GOOD AT OUTSOURCING AND MARKETING. THEY ARE NOT GOOD AT VERTICAL INTEGRATION AND SOFTWARE. SO, IF YOU LOOK AT EVEN FORT'S LAST EARNINGS CALL, ONE OF THE THINGS THEIR CEO CALLED OUT IS THAT TESLA AND RIVIAN, THOSE OF THE TWO COMPANIES HE CALLED OUT, ARE THE TWO COMPANIES THAT HAVE DEVELOPED A NEW TECHNOLOGY INFRASTRUCTURE THAT REALLY MODERNIZES THE EXPERIENCE FOR CUSTOMERS. AND OF THE IMPORTANT THINGS NOW AS A CUSTOMER IS -- AND I HAVE HAD A TESLA FOR A LONG TIME -- YOU EXPECT TO GET OVER THE AIR UPDATES FOR YOUR CAR. YOU EXPECT TO ACCESS YOUR CAR THROUGH YOUR MOBILE PHONE, AND THOSE UPDATES ARE NOT JUST TO THE USER INTERFACE.
THEY ARE TO THE SUSPENSION SYSTEM, WHICH REQUIRES INTEGRATION. THINK THE VOLKSWAGEN DEAL IS, LIKE, A TURNING POINT FOR THE INDUSTRY IN THAT VOLKSWAGEN, WHICH OWNS AUDI, VOLKSWAGEN, LAMBORGHINI, THEY WANT TO INFUSE THOSE PLATFORMS WITH RIVIAN TECHNOLOGY. IT OPENS UP THIS NEW PARADIGM IN THE AUTOMOTIVE INDUSTRY WHERE YOU SEE THE LEGACY OEM'S MIGHT NEED RIVIAN AS A SUPPLIER OF TECHNOLOGY AND SOFTWARE, WHICH IS A NEW ANGLE TO THE STORY. >> GIVEN THE DEVELOPMENTS WE HAVE SEEN, IT IS STILL A VOLATILE STOCK. HOW DO YOU HEDGE AGAINST THAT VOLATILITY IN YOUR PORTFOLIO? GIL: WE HAVE USED THE VOLATILITY TO OUR ADVANTAGE. IT WAS ONE OF THE BIGGEST IPO'S IN HISTORY.
I THINK IT CAME OUT AT A 00 BILLION VALUATION, BECAUSE PEOPLE PERCEIVE IT COULD BE THE NEXT TESLA. SEVERAL YEARS LATER THE ROADMAP IS STARTING TO COME INTO VIEW. OBVIOUSLY THAT WAS VERY EARLY FOR PEOPLE TO THINK THAT FAR OUT. BUT WE HAVE USED THAT DOWNSIDE VOLATILITY TO OUR ADVANTAGE. WE HAVE JUST PURCHASED THE STOCK IN THE LAST SIX MONTHS AROUND THESE LEVELS. WE ARE VERY HAPPY TAKING A POSITION IN RIVIAN, USING THE DOWNSIDE PRICE ACTION TO OUR ADVANTAGE, TO BE LONG-TERM INVESTORS TO SEE WHAT THIS COMPANY CAN BECOME. CAROLINE:
ONE OF YOUR OTHER KEY HOLDINGS IS IMPACTED BY TESLA. THAT IS UBER. THAT WAS THE ROBOTAXI. I'M INTERESTED IN YOUR E THOUSAND AND FOCUS AND WHY YOU ARE SO COMMITTED TO THE NAME? GIL: THAT IS A GREAT QUESTION. IN SPITE OF HUBER PUTTING UP TREMENDOUS FUNDAMENTALS, ONE OF THE BIG OVERHANGS ON THE STOCK HAS BEEN ELON'S COMMENTARY AND PLANS AROUND ROBOTAXIS. THIS HAS BEEN A BIG DEBATE IN THE STOCK MARKET. WE ARE VERY CONVICTED THAT AUTONOMOUS VEHICLES ACTUALLY WILL GO THROUGH GRUBER’'S PLATFORM, NOT AROUND.
MEANING THAT TODAY THE BIGGEST PLAYER IN AV'S IS WAYMO. WE ARE PARTICIPANT -- ANTICIPATING EXPANSION OF THAT AGREEMENT, BECAUSE IF YOU THINK ABOUT WAYMO GOING DIRECT TO CONSUMERS THROUGH ITS OWN APP, IT DOESN'T HAVE NEARLY THE EXPOSURE OR DISTRIBUTION THAT THEY GET THROUGH GRUBER. SO, TO BETTER UTILIZE THEIR FIXED CAPACITY OF CARS, THEY ARE PARTNERING WITH GRUBER TO GENERATE HER UTILIZATION.
WE THINK THAT IS A VERY IMPORTANT UNDERSTANDING, TO UNDERSTANDING HOW AV COMPANIES, COMPANIES THAT HAVE AUTONOMOUS FUNCTIONALITY, WILL LEVERAGE DISTRIBUTION TO ACHIEVE BETTER ECONOMICS. WITH ROBOTAXIS ONE OF THE BIG KNOCKS WE HAVE, AGAIN, AS A TESLA OWNER, THE DREAM THAT I CAN PUSH A BUTTON AND LEFT MY CAR DRIVE AROUND AND GENERATE REVENUE FOR ME SOUNDS GREAT. AND WE LOVE ELON'S LONG-TERM VISIONS. BUT WE ALSO THINK IT IS A BIT NAIVE, IN THAT THE NUMBER OF CUSTOMERS LIKELY TO PUSH THAT BUTTON AND LET THEIR CARS DRIVE AROUND WITH STRANGERS IN THE BACKSEAT, THERE ARE JUST A LOT OF REAL-WORLD CONSIDERATIONS WE THINK MAKE IT VERY FAR FROM HAPPENING. CAROLINE: THE REAL-WORLD DRIVER IS ARTIFICIAL INTELLIGENCE AS WELL. I GO BACK TO THAT AS A DRIVING FORCE OF WHAT NAMES YOU GET IN AND OUT OF, BECAUSE WHERE ARE WE UNDERVALUING THE IMPACT OF ARTIFICIAL INTELLIGENCE IN CERTAIN APPLICATIONS AND NAMES? GIL: WE OWN MANY COMPANIES, SO WE DON'T DO A LOT OF HARDWARE. WE OWN A LOT OF COMPANIES THAT
WE EXPECT TO BENEFIT SIGNIFICANTLY FROM AI. IN THE AUTOMOTIVE SPACE, AI, TALK ABOUT AUTONOMOUS DRIVING. THAT IS WHY IT IS IMPORTANT FOR US TO HAVE A VIEW ON UBER AND WHETHER AI IS A BENEFIT OR HINDRANCE OVER TIME.
BUT THERE ARE A LOT OF NAMES WE OWN IN THE INFRASTRUCTURE SPACE. YOU KNOW, REALLY IN CLOUD INFRASTRUCTURE, LIKE AMAZON AND MICROSOFT. NAMES THAT ARE KNOWN TO EVERYBODY, BUT ALSO DATA DOG IN THE SOFTWARE SPACE, WHICH IS A TIE ON TO COMPANIES INVESTING IN THEIR CLOUD INFRASTRUCTURE.
HE ALSO OWN A COMPANY THAT YOU WOULD NOT THINK OF AS AN AI BENEFICIARY, WHICH IS ROBLOX. I SAW BLOOMBERG INTELLIGENCE PUT OUT A PIECE THIS MORNING TALKING ABOUT HOW ROBLOX IS EMBRACING AI TO HELP THEIR DEVELOPERS GO TO GAMES AND EXPERIENCE ON THE PLATFORM. THERE ARE A LOT OF COMPANIES THAT ARE IN THE MARKET BOTH ENTERPRISE AND CONSUMER-FACING. WE WANT TO MAKE SURE THAT WE ARE WITH MANAGEMENT TEAMS AND COMPANIES THAT ARE ON THE FRONT FOOT, THAT ARE LOOKING TO EMBRACE AI AND ALL OF THE DIFFERENT POTENTIAL WAYS THAT THEY CAN. CAROLINE: A JOY TO HAVE YOU ON. COME BACK SOON, WE HOPE.
GIL SIMON, CHIEF INVESTMENT OFFICER AT SOMA EQUITY PARTNERS. MEANWHILE, COMING UP, WE ARE GOING TO BE JOINED BY A KEY FOCUS OF VC RIGHT NOW. IT IS ABOUT FREEDOM IS GOING TO BE JOINING US. WE WILL TAKE A LOOK AT THE IPO MARKET.
THIS IS NUMBERED. -- BLOOMBERG. >> THE IPO MARKET IS OPEN. IF YOU LOOK HOW THE COMPANIES THAT HAVE GONE PUBLIC, RUBRIC AND INSTACART, THEY HAVE ACTUALLY DONE REMARKABLY WELL, BUT WOULD NOT KNOW THAT BASED ON THE VOLUME, WHICH IS ALMOST DRIED UP. ED:
THAT WAS MITCHELL GREEN ON THE SHOW YESTERDAY, SAYING THE IPO MARKET IS BACK, OR OPEN, BUT NOT EVERYONE AGREES. LET'S BRING IN ISABELLE FREIDHEIM, A PARTNER AT ETHIER CAPITAL, FOCUSING ON PRIVATE COMPANIES PREPARING TO GO PUBLIC OR CONSIDERING ANOTHER EXIT, LIKE M&A. THE IPO MARKET IS OPEN. DO YOU THINK THE IPO MARKET IS OPEN? ISABEL: I THINK WE ARE STARTING TO SEE A RECOVERY. THE IPO VOLUME IN THE U.S. IT IS UP IN 2024, ABOUT 12%. PROCEEDS ARE UP AS WELL, WHICH
IS ENCOURAGING. WE ARE STARTING TO SEE LARGER DEALS, SUCH AS REDDIT, STRIPE, NVIDIA, AND THIS IS AN INDICATION THAT INVESTORS ARE STARTING TO INDICATE AN INTEREST IN COMPANIES GOING PUBLIC AND POINT CAPITAL INTO TECH COMPANIES IN PARTICULAR. BUT THEY ARE NONETHELESS PRUDENT. THAT IS WHY WE ARE ONLY SEEING AT THIS POINT STILL LARGER-SIZED COMPANIES BECAUSE THEY HAVE A BETTER CHANCE OF SUCCESS. I THINK WE ARE GOING TO
CONTINUE TO SEE THAT FOR THE REMAINDER OF THE YEAR, WITH LIKELY A HIGHER VELOCITY OF DEALS IN 2025 AFTER THE ELECTIONS. ED: ELECTIONS IS AN INTERESTING POINT. SOMETHING MITCHELL REFLECTED ON YESTERDAY IS, IT IS VERY DIFFICULT TO BE A PRIVATE COMPANY PLANNING TO GO PUBLIC FROM A REGULATORY STANDPOINT. YOU KNOW, THE PAPERWORK INVOLVED, FRANKLY. WHAT DO MAKE OF THAT? PARTICULARLY WITH YOUR FOCUS ON TAKING COMPANIES THAT ARE CURRENTLY PRIVATE, BUT THINKING ABOUT JUMPING INTO THE EQUITY MARKETS? ISABELLE: IT IS VERY DIFFICULT. UNFORTUNATELY WE ARE ON -- ARE IN AN REGULATORY ENVIRONMENT IN WHICH IT IS HARD FOR COMPANIES TO GO PUBLIC.
WE HAVE SEEN FOR THE LAST 30 YEARS OR SO ABOUT 90% DECREASE IN THE VOLUME AND THE NUMBER OF PUBLICLY TRADED COMPANIES. FORTUNATELY CHAIRMAN GENSLER HAS ENACTED ALMOST 40 RULES RECENTLY, AND IT IS MAKING IT HARDER. IT IS MAKING THE U.S. LESS COMPETITIVE, AND IT HAS REPERCUSSIONS THAT ARE BOTH GEOPOLITICAL AND REPERCUSSIONS ON OUR STANDARD OF LIVING. CAROLINE: I'M RENT -- I'M INTERESTED THEN, WHAT TO BE DONE? YOU HAVE EXPERIENCE WHEN IT COMES TO IPO'S, BUT ALSO SPAC'S. SOME WOULD SAY THE ISSUE WITH SPAC'S WAS THERE WERE NOT ENOUGH INVESTOR PROTECTIONS IN PLACE. HOW DO YOU MAKE IT LESS EXPENSIVE, BUT ALSO NECESSARILY PROTECT, PARTICULARLY OF RETAIL INVESTORS, FOR COMPANIES TO GO PUBLIC? ISABELLE: SPAC'S ARE A SYMPTOM OF RETAIL INVESTORS DEMANDING ACCESS TO TECH RETURNS.
FOR THE LAST TWO DECADES TECH RETURNS HAVE BEEN HOARDED BY THE VENTURE CAPITAL INDUSTRY. SO, THE AMAZONS AND GOOGLES OF THE WORLD. THOSE RETURNS TOOK PLACE FOR THE MOST PART PRIVATELY BEFORE THE COMPANIES WENT PUBLIC. THAT IS THE CASE FOR MANY TECH COMPANIES.
RETAIL INVESTORS WANTED ACCESS TO THOSE INVESTMENTS, AND THEY ARE DIFFICULT. THEY ARE RISKY TO MAKE IN THE VENTURE CAPITAL ASSET CLASS. THEREFORE SPAC'S WERE A SYMPTOM OF THAT. BUT BEYOND THAT, THERE NEEDS TO BE EASIER ACCESS FOR CAPITAL FORMATION, FOR TECH COMPANIES THAT ARE INNOVATIVE, THAT IMPROVE OUR STANDARD OF LIVING. BECAUSE VENTURE CAPITAL IS THE LIFEBLOOD FOR INNOVATION. WE IN THE INDUSTRY EXIST FOR THE EXITS.
RESPOND COMPANIES BECAUSE WE KNOW THERE IS AN EXIT ON THE OTHER END. IF COMPANIES STAY PRIVATE FOR TOO LONG WE JEOPARDIZE THE ASSET CLASS. CAROLINE: SO WHAT SHOULD WE BRACE OURSELVES FOR POST-NOVEMBER? IS IT AI NAMES? ISABELLE: IT IS LARGER-SIZED COMPANIES IN THE SHORT-TERM AND IT IS GOING TO BE MORE INNOVATIVE COMPANIES, PROBABLY IN THE NEXT COUPLE OF YEARS. WE ARE STILL SEEING A RECOVERY. IT WILL HAPPEN. THERE IS A BIG BACKLOG OF COMPANIES THAT WANT TO GO PUBLIC. INVESTORS THAT WANT TO DEPLOY CAPITAL INTO THOSE COMPANIES THAT ARE GOING TO FIND SOLUTIONS TO CLIMATE PROBLEMS, TO DRUG DEVELOPMENTS, TO PAYMENTS, TO MANY OF THE TECHNOLOGIES WE USE THAT, AGAIN, IMPROVE OUR STANDARD OF LIVING. WE WILL SEE THAT HAPPEN.
WHETHER IN SIX MONTHS, A YEAR, TWO YEARS, IT DOESN'T MATTER, BUT IT WILL HAPPEN. CAROLINE: WE WILL SEE AS AND WHEN. ISABELLE FREIDHEIM, GREAT TO HAVE SOME PERSPECTIVE. MANAGING PARTNER OF ATHENA CAPITAL.
WE ARE GOING TO BE JOINED BY CRYPTO PROSECUTOR AMANDA WICK FOR HER TAKE ON TRUMP'S CRYPTO PLATFORM. THAT IS NEXT. THIS IS "BLOOMBERG TECHNOLOGY." ♪ ED: I'M LOOKING AT THE CRYPTO MARKET, BITCOIN IN PARTICULAR TRADING JUST BELOW $60,000 PER TOKEN, BECAUSE IT WAS EXPECTED TO BUT DID NOT COME UP IN THAT SPACES BETWEEN MUSK AND DONALD TRUMP. BUT DONALD TRUMP HAS BEEN TALKING ABOUT CRYPTO A LOT RECENTLY. AT THE BITCOIN CONFERENCE A COUPLE OF WEEKS AGO HE EVEN PROMISED TO CREATE A NATIONAL BITCOIN STOCK PILE, WITH CURRENCY BEING HELD BY THE U.S. GOVERNMENT AS PART OF HIS PLATFORM. HAVE A LISTEN TO THIS.
>> IF I AM ELECTED IT WILL BE THE POLICY OF MY ADMINISTRATION, UNITED STATES OF AMERICA, TO KEEP 100% OF ALL THE BITCOIN THE U.S. GOVERNMENT CURRENTLY HOLDS OR REQUIRES INTO THE FUTURE. WE WILL KEEP 100%. I HOPE YOU DO WELL. ED: THAT STATEMENT ALARMED A FEW FORMER PROSECUTORS. THAT INCLUDES AMANDA WICK, NOW
A PRINCIPAL WITH INSIGHT CONSULTING, WHO SERVED AS A FEDERAL PROSECUTOR WITH THE U.S. DOJ FOR NEARLY A DECADE. HE SPECIALIZED IN MONEY LAUNDERING AND CRYPTOCURRENCY. WHY DID THAT ALARM YOU? AMANDA: UNFORTUNATELY IT IS ONE OF THE MANY THINGS THAT HE SAYS THAT ARE WRONG, ILLEGAL, OR NOT POSSIBLE. WHEN HE SAYS HE'S GOING TO KEEP 100%, SOME OF THAT MONEY IS FROM THE VICTIMS OF SCAMS, ACTS, RANSOMWARE. IT HAS TO GO BACK LEGALLY AND IT HAS BEEN STOCKPILED LARGELY BECAUSE IT COULD NOT GO BACK DUE TO SOME CONTRACTING ISSUES. I THINK THE CONCERNING PART IS
TRUMP HAS A TENDENCY TO SAY WHAT PEOPLE WANT TO HEAR AND NOT WHAT IS REMOTELY FEASIBLE OR LEGAL. CAROLINE: THIS CALL IS FOR A STOCK. THE U.S. HOLDS ABOUT 2 BILLION WORTH OF CRYPTO AT THIS POINT. JUST GO THROUGH THE MOTIONS OF HOW THE U.S. GOVERNMENT DECIDES AS AND WHEN IT SHOULD SELL ITS GRIP THOUGH HOLDINGS TO REPAY THOSE WHO ARE THE VICTIMS OF SCAMS OR HAVE HAD RANSOMS, FOR EXAMPLE. AMANDA: THERE IS A PROCESS, AND IT IS CALLED THE ASSET FORFEITURE PROCESS. IT HAS BEEN ESTABLISHED FOR
YEARS. THE PROCESS BY WHICH THOSE FUNDS WOULD BE LIQUIDATED OR SOLD WAS HELD UP DUE TO A CONTRACTING ISSUE THAT THE U.S. MARSHALS WAS HAVING. AND ONLY RECENTLY ON JULY 1, I
BELIEVE, WAS IT ANNOUNCED THE CONTRACT HAD GONE TO COINBASE. THIS PERCEPTION THAT THE GOVERNMENT WAS PURPOSELY KEEPING THE FUNDS WAS ACTUALLY A CONTRACTING GLITCH, LIKELY, IN THE SENSE THAT IT WAS STALLING IN TERMS OF THEIR ABILITY TO LIQUIDATE IT. NORMALLY THAT PROCESS, THEY WOULD BE SOLD AND THE FUNDS WOULD BE RETURNED TO VICTIMS AS PART OF THE CIVIL OR CRIMINAL CASE. ED: I WANT TO LEVEL WITH OUR AUDIENCE.
WE TALKED -- WE ARE TALKING ABOUT THIS BECAUSE WE THOUGHT IT WOULD COME UP LAST NIGHT. IT JUST DID NOT. THE SEC AND GENSLER, THAT IS THE OTHER SIDE OF THIS. HE TALKED ABOUT FIRING CHAIR GENSLER. THE MECHANICS OF THAT WORKING AND TRYING TO GET A BITCOIN RESERVE, I'M TRYING TO UNDERSTAND PROCESS, WHY IT WOULD WORK. AMANDA: PROFESSOR EVANS DID A PHENOMENAL ARTICLE ON THIS, WHERE SHE TALKED ABOUT THE IMPOSSIBILITY OF FIRING HIM ON DAY ONE.
I THINK -- LOOK, THERE WERE PEOPLE PLACING BETS ON WHETHER BITCOIN OR CRYPTO LAST NIGHT, AND I THINK IT IS A DISTURBING TREND THAT HE TENDS TO TAKE MONEY FROM PEOPLE WILLING TO GIVE IT TO HIM, AND THE CRYPTO COMMUNITY HAS BEEN BATTERED FOR FOUR YEARS BY THE BIDEN ADMINISTRATION, AND THEY ARE ONLY TOO HAPPY TO HEAD TOWARD SOMEBODY GIVING THEM POSITIVE INDICATORS. I THINK THE HARRIS CAMPAIGN HAS BEEN SLOWER TO GIVE POSITIVE INDICATORS. AS A GROUP, CRIB FOR HARRIS, THAT IS ENGAGING ON THAT, BUT THERE HAVE BEEN POSITIVE INDICATORS FROM THE HARRIS CAMPAIGN PRIVATELY. WHAT I THINK THE CRYPTO
COMMUNITY HAS TO DECIDE, DO YOU WANT SOMEBODY SAYING YOU WANT TO HEAR BUT IT IS NOT POSSIBLE? OR DO YOU WANT SOMEBODY TAKING THEIR TIME AND DELIBERATING WHAT THE POLICY SHOULD BE BECAUSE IT HAS A CHANCE? CAROLINE: AMANDA WICK, A FORMER FEDERAL PROSECUTOR.
2024-08-17 09:14
