'Bloomberg Technology' Full Show (01/20/2023)
>> I'M ED LUDLOW IN SAN FRANCISCO THIS IS BLOOMBERG TECHNOLOGY. >> COMING UP MORE LAYOFFS THIS TIMES AT GOOGLE'S PARENT THAT MEANS MORE THAN 100,000 TECH WORKERS HAVE BEEN LAID OFF SINCE THE START OF 2022. >> ELON MUSK IS TESTIFYING UNDER OATH OR THE CLAIMS HE MISLED SHAREHOLDERS ABOUT TAKING THE COMPANY PRIVATE. >> WE ASKED CFTC COMMISSIONER HOW SHE SUGGESTS THE GOVERNMENT REGULATE DIGITAL ASSETS. FIRST, A CHECK ON THOSE MARKETS.
LET'S HAVE A LOOK AT WHAT IS HAPPENING IN TERMS OF NASDAQ. WHAT A RISK ON TRADE. WHAT THE DESIRE TO GET INTO TECHNOLOGY STOCKS. THE NASDAQ UP 2.7% AND MANAGING TO SHIRK OFF SOME OF THOSE SCREENS WE ARE USED TO THE REST OF THE WEEK.
IT BRINGS THE WEEKLY MOVE INTO THE GREEN. THE MSCI ALSO UP FOR THE DAY. AND INTERESTING MOVE WE HAVE SEEN SUCH LOCKSTEP MOVES IN TERMS OF BONDS AND STOCKS. OVERALL GLOBAL AND BOND INDEX THEY ARE BASICALLY WORKING TOGETHER. WE HAVEN'T SEEN SUCH CORRELATIONS GOING BACK TO THE 1990'S.
WILL THIS BE MORE OF A TURN OF EVENTS FOR THE 64 ONCE AGAIN WITH BONDS FALLING YIELDS HIGHER. THEY LIVED ON THE HIGH SIDE TOO. IT'S ALL ABOUT THE FEDERAL RESERVE. IT'S ALL ABOUT HOPING THEY WON'T BE QUITE SO HAWKISH. WHAT HAS MANAGED TO STAY IN THE RISK THROUGHOUT THIS WEEK HITTING THE HIGHEST ANY -- SINCE SEPTEMBER IS BITCOIN. UP 7% ON THE DAY AND UNDER THE COURSE OF SIX MONTHS WE ARE ABOUT MORE THAN 40% ABOVE THOSE LOWS BACK IN NOVEMBER.
>> INTERESTING OVER ON MY SIDE. THE FEEL-GOOD IN PUBLIC MARKETS PART OF THE FEEL-GOOD STORIES GOING TO START WITH NETFLIX. BIGGEST JUMPS SINCE NOVEMBER. THE WORLD REACTED POSITIVELY
NOT JUST TO THE MANAGEMENT CHANGES GOING UPSTAIRS TO EXECUTIVE CHAIR GREG PETERS BECOMING CO-CEO BUT ALSO WHEN IT COMES TO PROFITABILITY AND LIKING WHAT THEY ARE HEARING ABOUT THE STORY FOR THIS YEAR DESPITE THAT CHANGE CHANGE ISN'T ALWAYS POSITIVE. IT'S NOT WHEN YOU AND I TALK ABOUT OFTEN BUT THIS IS THE PARENT COMPANY OF SILICON VALLEY BANK THAT LENDS TO A A LOT OF STARTUPS BUT IT FORECAST INCOME OF 925-$955 MILLION. I THINK IT'S THE BIGGEST JUMP ON THE STOCK SINCE 2018. TESLA UP 2.5%. ELON MUSK IS TESTIFYING HERE IN SAN FRANCISCO.
THE STOCK REALLY NOT TRADING ON THAT BUT INTERESTING TO SEE HOW MUCH THE SHARES ARE THE HIGHEST LEVEL IN A MONTH. ALPHABET, IT'S LAYING OFF 6% OF STAFF GLOBALLY. INVESTORS CHEER THAT. LAYOFFS ARE NOT PLEASANT, BUT IF YOU ARE AN INVESTOR AND YOU LOOK AT THE CHART NEXT TO ME THAT IS SLOWING TOPLINE GROWTH AND THE NARRATIVE AROUND THE TECH SECTOR PROTECTING EPS PROTECTING THE BOTTOM LINE THROUGHOUT 2023 THAT IS WHAT INVESTORS WANT TO HEAR. I KNOW IT'S PAINFUL BUT IF YOU ARE AN INVESTOR SEEKING RETURNS THIS IS WHAT YOU WANT TO SEE THEM DOING IN A CHANGING AND DIFFICULT ENVIRONMENT.
>> LET'S TALK ABOUT THE LAYOFF THAT WILL AFFECT 6% OF GOOGLE'S PARENT COMPANY. 12,000 JOBS. THIS IS A GLOBAL LAYOFF FROM THE COMPANY DETECT GIANT IS RETRENCHING. LET'S CALL IT YEARS OF ABUNDANT GROWTH, ABUNDANT HIRING. JULIA, WE NEED TO BUT THIS IN PERSPECTIVE.
12,000 IS A LOT OF PEOPLE AND IT HURTS INDIVIDUALS BUT ULTIMATELY THEY ARE SHEDDING JOBS THAT ONLY TAKE US BACK TO A YEAR AGO THEY JUST FELT UP SO MUCH OVER COVID. >> IT'S REALLY QUITE TREMENDOUS GOOGLE'S HEADCOUNT HAS BEEN GROWING ABOUT 20% A YEAR SINCE 2017. INVESTORS HAVE REALLY BEEN CLAMORING FOR THEM TO START HITTING THE BRAKES.
>> YOU DO SUCH AN AMAZING JOB COVERING THE GOOGLE ALPHABET BECAUSE IT SUCH A DIVERSE COMPANY NOW. IT'S NOT JUST GOOGLE SEARCH. WHAT WAS INTERESTING ABOUT YOUR REPORTING IS THIS SPECIFIC AREA WHERE GOOGLE IS CUTTING BACK.
WHICH TEAMS ARE MOST IMPACTED? >> ABSOLUTELY, WE ARE STILL TRYING TO GET TO THE BOTTOM OF THAT. THE CUTS HAVE BEEN BROAD-BASED. IT SEEMS THAT AREA 120, THE FAMOUS NEW IDEA INCUBATOR HAS BEEN ALL BUT SHUTTERED. THERE ARE PROJECTS THAT ARE GRADUATING THAT WILL BE FOLDED INTO GOOGLE BUT IT SEEMS THAT ALL OTHER EMPLOYEES WITH THE EXCEPTION OF THE MANAGING DIRECTOR HAVE BEEN LAID OFF.
>> OF COURSE INVESTORS HAD BEEN ASKING FOR THIS. NEEDING A FOCUS ON MARGINS AND HAVING TO LOOK MORE AT LAYING PEOPLE OFF BUT WHAT WAS INTERESTING FOR ME ACTUALLY THEY ARE LAYING OFF OR REORGANIZING THE AI PART OF THE BUSINESS. THAT IS QUITE NOTABLE SINCE EVERYBODY WAS SO EXCITED ABOUT THE FOCUS ON ARTIFICIAL INTELLIGENCE. >> IT'S A REALLY INTERESTING STORYLINE BECAUSE GOOGLE HAS GIVEN THE WORLD MUCH OF THE CUTTING EDGE TECHNOLOGY IN ARTIFICIAL INTELLIGENCE BUT THE RELEASE OF CHAT HAS REALLY CAUSED A LOT OF CONCERN THAT GOOGLE MIGHT BE LEFT BEHIND IN THIS TECHNOLOGICAL WAY SO THE COMPANY DOES REALLY APPEAR TO BE DOING EVERYTHING IT CAN TO MAKE SURE IT'S NOT LEFT BEHIND. >> YOU HAD ME AT THE TOP OF THE SHOW TALKING ABOUT THE REACTION, WHY ARE THESE TECH COMPANIES DOING THIS AND PART OF IT IS CHANGING ENVIRONMENT. YOU HAVE GONE QUICKLY FROM MAKE A GROWTH -- MAKE A GROWTH TO SLOWER GROWTH.
HIT BY THE ADVERTISING SLOWDOWN IN PARTICULAR. THE STOCK GROWS, WHAT IS IT INVESTORS LIKE ABOUT THIS? HOW DOES IT IMPACT TO FOR ALPHABET? >> WELL IT'S INTERESTING BECAUSE GOOGLE'S SEARCH ADVERTISING BUSINESS IS PRETTY RESILIENT BUT THE LAST QUARTER SHOWS THEY WERE NO LONGER IN BE YOU. THE TOP ON AND SNOW LONGER GROWING AND THE ONLY WAY FOR THEM TO GIVE INVESTORS THE NUMBERS THEY WANT TO SEE IS TO CUT COSTS. >> JULIA LOVE, THANK YOU SO MUCH FOR KEEPING US UP TO SPEED. IT WAS INTERESTING OVER ALL AS WELL.
THE WAYS IN WHICH COMPANIES TO PROTECT THEIR OWN DATA, WE SPOKE ABOUT THIS EARLIER, SOME WAYS HAVE TO ACT REALLY ABRUPTLY AND THERE WAS SO MUCH FROM TWITTER ABOUT PEOPLE NOT HAVING SEEN THE EMAIL SENT EARLIER THIS MORNING SUDDENLY REALLY -- REALIZING THEY COULDN'T. IT FELT LIKE REALLY TRY TO OWN AND TAKE RESPONSIBILITY FOR THE LAYOFFS. >> THE QUESTION I'VE HAD IS THE TIMING AROUND IT. IT'S AS IF VARIOUS PEERS WERE WAITING FOR THE OTHER PLAYERS TO GO FIRST. IT WAS A STRANGE WEEK IN THAT RESPECT. IT'S 40,000 JOBS CONFIRMED IN THE SPACE OF FIVE DAYS, PRETTY ASTONISHING.
>> IT REALLY IS AND THE NUMBERS READ UP. ELON MUSK, WE HAVE BEEN UNDERSTANDING HE HAS WRAPPED UP TESTIFYING AT A MULTI BILLION-DOLLAR SUIT. MUSCAT TOLD THE JURY HE IS AWARE AFTER THE TWEETS THE SOX MOVED UP OR DOWN HE ADVOCATED FOR THE VALUE OF BEING A PRIVATE COMPANY.
WE WILL HAVE MORE ON THAT LATER THIS HOUR AND THIS IS WHAT I NOW , YOU KEEP ON FOLLOWING AND THE FACT THAT HE WAS THERE BEING EXAMINED BY HIS OWN SIDE, GOING TO HAVE TO WAIT FOR THE WEEKEND TO SEE WHAT CROSS-EXAMINATION LOOKS LIKE. >> I FIND THIS FASCINATING BECAUSE OF HIS CHARACTER. WE WERE NOT IN THE COURTROOM BUT WE HAVE COLLEAGUES THAT WERE AND I CANNOT WAIT TO HEAR ABOUT STRATEGY.
ELON MUSK CAN'T HELP HIMSELF TALKING ABOUT SHORT-SELLERS, TALKING ABOUT REGULATORS AND THAT WAS PART OF ACADEMICS THAT WOULD BE THE STRATEGY, GET HIM RILED UP ON THE STAND. COMING UP, AWS PLANS INVESTMENTS AT MULTIPLE LOCATIONS. PART OF THE 35 BILLION-DOLLAR DEAL THAT WILL SEE NEW DATA CENTERS ACROSS THE STATE BY 2040. WE WILL GET THE GOVERNORS REACTION NEXT. THIS IS BLOOMBERG.
>> AMAZON'S CLOUD UNIT WILL SPEND MORE ON DATA CENTERS WINNING TO STAY AHEAD OF RIVALS. A BIG ONE FOR THE STATE OF VIRGINIA OR IS WHAT GOVERNOR GLENALLEN YOUNGKIN HAD TO SAY ABOUT THAT. >> THIS IS BIG AND $35 BILLION FINANCIAL COMMITMENT THE LARGEST EVER MADE TO THE COMMONWEALTH OF VIRGINIA OUR PARTNERSHIP WITH AWS STARTED BACK IN 2006 AND HAS ONLY GROWN. VIRGINIA IS THE LARGEST MARKET FOR DATA CENTERS IN THE WORLD. WHAT'S MOST EXCITING IS THE LONG-TERM NATURE OF THIS COMMITMENT. NOT ONLY IS IT $35 BILLION BUT
THEY ARE GOING TO EXPAND THEIR FOOTPRINT ACROSS THE COMMONWEALTH OF VIRGINIA. IT'S GOING TO BRING THE BENEFITS THAT COME WITH THESE JOBS, THE MULTIPLIER EFFECT WITH THESE JOBS, THE ECHO SYSTEM THAT IS CREATED, THE OVER 100 BUSINESSES THAT SUPPORT THE CONSTRUCTION, LOCALITIES OUTSIDE OF NORTHERN VIRGINIA DIRECTLY AND THAT'S GREAT FOR THE COMMONWEALTH TO SEE IT EXPAND OUR FOOTPRINT AND MAINTAIN OUR MARKET-LEADING POSITION. >> AW AS SAYING 1000 NEW JOBS CREATED DIRECTLY FROM THIS. WHAT I FIND FASCINATING IS IF YOU LOOK AT THE HISTORY OF THE STATES RELATIONSHIP AWS, I THINK BETWEEN 2011 AND 2020 THEY HAD ALREADY INVESTED 35 BILLION INTO YOUR STATE.
INCENTIVES THROUGH THE FORM OF GRANTS AND TAX EXEMPTIONS IS STILL AT PLAY HERE. WAS THIS A DIFFICULT NEGOTIATION? >> NEGOTIATION, IT'S NEVER DIFFICULT OR EASY IT'S JUST NEGOTIATION TO REPRESENT THE TAXPAYERS OF VIRGINIA ADEQUATELY. THAT IS MY JOB. I THINK WE HAVE STRUCK A VERY GOOD DEAL.
I THINK VIRGINIA WILL BENEFIT MIGHTILY. THE ECOSYSTEMS THAT DEVELOP ARE ENORMOUS. THERE ARE THOUSANDS OF JOBS THAT WILL BE CREATED IN ADDITION TO THE DIRECT JOBS FOR AWS. THERE ARE CONTRACTORS AND SUPPORTIVE COMPANIES THAT WILL BE DEVELOPED IN ORDER TO SUPPORT THE CONSTRUCTION FOR THE OPERATION.
THIS WILL ADD TO THE LOCALITIES SUBSTANTIAL FUNDING FOR SCHOOLS AND SERVICES AND INFRASTRUCTURE. THIS IS REALLY IMPORTANT TO THE LONG-TERM ECONOMIC DEVELOPMENT OF THE COMMONWEALTH. IT'S BIG, AS I SAID, BUT ON TOP OF THAT IT CONTINUES VIRGINIA'S LEADING POSITION IN THIS INDUSTRY OF THE FUTURE. IT'S ONE THAT WE CONTINUE TO WANT AND LEAD IN BUT EXPAND OUR LEAD IN.
>> VIRGINIA BECOMING A REAL DATA CENTER POWERHOUSE. IT HAS BEEN FOR SOME TIME INTERESTING PERSON AS WELL, POTENTIAL PRESIDENTIAL CANDIDATE 2024. I WAS ASKING ABOUT, WHY ARE YOU DOING THESE INCENTIVES? WHY DID YOU HAVE TO WORK SO HARD FOR THE DEAL AND HE SAID IT'S A GREAT WIN FOR THE STATE OF VIRGINIA. >> ALSO ENTICING, SOME OF THE TAX BREAKS.
THESE THINGS ARE JUST SO HUNGRY FOR THAT SORT OF POWER TO KEEP US CONNECTED. IN TERMS OF LAYOFFS, AMAZON IS ONE OF THEM. THEY ARE HAVING TO LAY OFF 18,000. CLEARLY INC. OF AMERICA REALLY MAKING CLEAR THAT THIS IS AN AREA THEY ARE GOING TO CONTINUE TO SPEND ON. >> AND I ASKED ABOUT THE LAYOFFS. HE SAID I'M ALWAYS CONCERNED ABOUT LAYOFFS.
MY CONCERN IS AMAZON DID MAKE CUTS BROADLY IN THE STATE OF VIRGINIA BUT AWS IS A UNIT. THAT WAS THE STORY OF THE DAY. IT HAS BEEN ABOUT THE GOVERNOR WALKING AWAY FROM A POTENTIAL DEAL WITH FORWARD AND SEE ATL BECAUSE HE FELT IT WAS NOT IN THE BEST INTEREST OF THE STATE HE WENT FURTHER THAN THAT. TAKE A LISTEN. >> WE HAVE A GREAT SITE IN THAT PART OF VIRGINIA AND I LOOK FORWARD TO BRINGING A GREAT COMPANY THERE. IT WON'T BE ONE THAT USES A TROJAN HORSE RELATIONSHIP WITH THE CHINESE COMMUNIST PARTY IN ORDER TO GAIN.
>> THAT WAS KIND OF FASCINATING WHAT HE WAS SAYING. ULTIMATELY THIS IS THE CHINESE COMPANY. SO WHAT WAS IT TROJAN HORSE WAS THE TERM HE USED? >> HIS LOGIC IS FORWARD PARTNERING WITH CATL IS CONTRARY TO THE SPIRIT OF THE INFLATION REDUCTION ACT WHICH LOOKS TO ESTABLISH THE U.S. SUPPLY CHAIN AND HE CALLED CATL A PUPPET OF THE CHINESE COMMUNIST PARTY, A FRONT FOR THE CHINESE COMMUNIST PARTY AND THAT WAS HIS LOGIC FOR SAYING NO. FORD CANNOT DO THIS DEAL THERE ARE MANY OTHER INTERESTED PARTIES. HE WOULD RATHER DO IT WAS SOMETHING THAT WAS NOT EMBROILED IN CONTROVERSY.
IT WAS WIDE-RANGING INTENSE BUT INTERESTING CONVERSATION WITH GOVERNOR YOUNGKIN. >> FASCINATING. OF ALL THINGS TO DO, COMING UP WE HAVE A RETURN TO AI, THE STORY OF THE DAY GOOGLES AI UNIT IS BEING SWEPT UP IN THE JOB CUTS AS WE MENTIONED.
AI STILL A KEY INVESTMENT FOR THE COMPANY. WE WILL DISCUSS HOW IT IS IMPACTING RESEARCH AND MUCH MORE. WENDY HALL, THIS IS BLOOMBERG. ♪ >> AT A TIME WHERE AI RESEARCH IS BOOMING IT'S ACTUALLY NOT ESCAPING THE WAVE OF LAYOFFS. IT WILL BE ORGANIZED.
IT'S ACCORDING TO A MEMO SEEN BY BLOOMBERG. LET'S BREAK IN -- BRING IN HOW OVER GOVERNMENTS SEATTLE. WENDY HALL. SHE STAY UP LATE FOR US. SHE WAS THE COCHAIR OF THE U.K. GOVERNMENTS AI REVIEW PUBLISHED BACK IN 2017. THAT IS ALSO WHAT INTERESTED ME
THE U.K. IN MANY WAYS DUE TO SOME OF THE REAL AI THOUGHT ABOUT THE WAY IN WHICH YOU NEED TO OVERSEE THIS, THE ETHICS, GOVERNMENT RELATIONSHIPS, ACADEMICS, AND ULTIMATELY THIS ALL STEMS OUR EXUBERANCE. AT THE HEART OF IT AT THE MOMENT ARE YOU WORRIED OR EXCITED? IS ONE MORE THAN THE OTHER? >> HELLO, THANK YOU FOR INVITING ME ON TONIGHT. IT'S BOTH.
IT HAS SHOWN PEOPLE WHO DON'T THINK ABOUT AI WHAT THE POSSIBILITIES ARE AND WHAT COULD POTENTIALLY BE NEGATIVE CONSEQUENCES. IF IT'S OPENED A LOT OF PEOPLE'S EYES TO WHAT THE ISSUES ARE. MANY OF US HAVE BEEN TALKING ABOUT IT FOR A NUMBER OF YEARS.
WE HAVE TO GET GOVERNMENTS TO THINK ABOUT HOW BEST TO REGULATE WITH NEW VERY FAST EMERGING INDUSTRY. >> ULTIMATELY, THE REVIEW YOU PAD -- PUBLISHED BACK IN 2017 HOW HAS IT TURNED INTO ANYTHING TANGIBLE? HAS IT BEEN SO MUCH WAS AT BEST. HAS THERE BEEN ANY MOVEMENTS TOWARDS ENSURING THERE IS THE RIGHT OVERSEEING? >> WELL, YES. WE ARE ABOUT TO PRODUCE A PAPER THAT WILL BE COMING OUT THIS SPRING FROM THE OFFICE. HOW IT WAS CREATED AS A RESULT OF THE REVIEWED WE DID IN 2017. I AM ON THE AI COUNSEL. WE HAD A LOT OF MONEY PUT INTO IT.
A SCHOOL COMPANY OUR SIZE, WE HAVE FANTASTIC UNIVERSITIES DOING TRAINING, PUTTING A LOT OF MONEY INTO TRAINING PEOPLE AND THE AI REGULATION PAPER IS DUE OUT THIS QUARTER WHICH WILL BE THE GOVERNMENT'S, THE U.K. GOVERNMENTS TAKE ON HOW WE BEGIN TO REGULATE AI. IT WILL BE DIFFERENT, IT WILL BE SET TO START WITH. IT'S ALL VERY EARLY JUST STARTING TO SHOW PEOPLE THE COMPLEXITY OF WHAT YOU'VE GOT TO REGULATE. IT'S NOT JUST ABOUT WHAT GOVERNMENTS DO.
THE INDUSTRY ITSELF. IT WAS INTERESTING TO HEAR THE NEWS FROM GOOGLE. I IMAGINE RESTRUCTURING BIG TIME IF THEY WANT DIFFERENT TYPES OF PEOPLE BECAUSE THEY'RE GOING TO HAVE TO TAKE THAT OPEN AI THREAT SERIOUSLY AND OF COURSE IT'S MICROSOFT. VERY INTERESTING AI WALLS COMING UP BETWEEN THE TECH COMPANIES. OF COURSE THE U.K.
AND EUROPE, EVERYTHING HAPPENING OUTSIDE OF OUR COUNTRIES. ALL SORTS OF ISSUES WHICH WOULD BE, WE NEED TO WORRY ABOUT DATA SOVEREIGNTY WE NEED TO WORRY ABOUT DIGITAL IDS. THERE IS SO MANY THINGS TO THINK ABOUT. >> I WANTED TO ASK YOU ABOUT THAT POINT BECAUSE ESSENTIALLY IF YOU THINK ABOUT IT THEY TAKE EXISTING CONTENT AND STORE I DON'T KNOW IF YOU SAW IT THERE WAS A DEEP DIVE ABOUT THE FIRST U.S. COPYRIGHT LAWSUIT. THE INFERENCES, HOW DOES THAT
LIMIT WHAT CAN YOU AND TO THE LANGUAGE MODELS IN ORDER TO GET SOMETHING OUT WHAT WAS YOUR REACTION TO THAT? >> THE PIECE YOUR TEAM SENT ME ABOUT AN HOUR AGO IS FASCINATING. WE ARE GOING TO SEE A LOT MORE OF THOSE TYPES OF LEGAL CHALLENGES. IF YOU TAKE GPT IT'S EFFECTIVELY TRAINED ON ANY TECH AVAILABLE ON THE INTERNET.
ANYTHING YOU GET FROM GOOGLE, FROM ANYTHING PEOPLE PUT UP ON THEIR OWN SITES AND DALLYING THESE IMAGES. WHAT IT SHOWS US IS THAT THESE TOOLS AT THE MOMENT DON'T CREATE , THEY COPY, THEY PREDICT, THEY VERY CLEVERLY MERGE IDEAS INTO GREAT IDEAS. IT'S ONE OF THE THINGS I'VE BEEN INTERESTED IN. THEY DON'T CREATE.
I THINK IT'S ABSOLUTELY, YOU THINK ABOUT THE EFFECTS ON THE MUSIC INDUSTRY WHICH HAS HAD A LOT OF BASHING FROM TECHNOLOGY ANYWAY. I MADE LOTS OF PEOPLE HAVE GOT IT TO WRITE POETRY A LOT OF THAT IS BASED ON STYLES THAT IT HAS BEEN TRAINED ON. THE OTHER THING TO REMEMBER ALSO THINGS LIKE THESE THEY ARE VERY EXPENSIVE TO RUN. THEY HAVE HUGE SUPERCOMPUTERS THAT PRODUCE, THEY LOOK OVER THE INTERNET HARVEST THE INFORMATION ON THE INTERNET. THIS WON'T STAY FREE FOREVER. IT CANNOT STAY FREE FOREVER. THE REALLY INTERESTING THING, IT'S VERY CLEVER BECAUSE THEY HAVE PROBABLY DRIVEN THE PRICE OF THE COMPANY UP WITH THAT, DOES THAT MAKE ANY SENSE TO YOU? MICROSOFT IS LOOKING TO INVEST MONEY INTO IT. I SORT OF WANT TO SAVE THERE
WAS A TIME TRUST MICROSOFT TO BE CAREFUL. THEY ARE INVESTING HUGE AMOUNTS OF MONEY. IT WON'T BE FREE FOREVER. >> WENDY HALL PROFESSOR OF COMPUTER SCIENCE.
WE WILL HAVE TO GET YOU BACK ON THE PROGRAM. WE DIDN'T EVEN SCRATCH THE SURFACE. >> HAPPY TO. >> COMING UP, SCT COMMISSIONER KRISTI GOLDSMITH, THAT'S NEXT. >> WELCOME BACK TO BLOOMBERG TECHNOLOGY. LET'S TURN TO BITCOIN. A LENDER BACKED BY DIGITAL
CURRENCY WHILE IT FINALLY FILED FOR BANKRUPTCY. THE LATEST FROM TO COLLAPSE IN THE AFTERMATH OF FTX'S DOWNFALL. BRETT HARRISON JUST RAISED MONEY , $5 MILLION FOR A NEW START UP SOME PRETTY NOTABLE NAMES.
SHE'S HERE TO EXPLAIN, P APPRECIATE IT. >> TALK TO US ABOUT GENESIS, HOW IMPORTANT IS IT THAT THEY FINALLY FILED FOR BANKRUPTCY? >> IT'S ANOTHER WAY TO GET FORWARD IN TERMS OF GETTING THERE MONEY BACK. VERY TYPICALLY WITH INTERESTED HERE IS YOU MIGHT NOT GET IT ALL. THERE ARE EARLIER DISCUSSIONS IF YOU HAVE SEEN REPORTED IN MULTIPLE OUTLETS. MAYBE THERE WOULD BE A SENSE OF GETTING $.70 ON THE DOLLAR OR SO BUT AS YOU GO THROUGH THIS
PROCESS WHAT YOU REALLY DON'T WANT TO SEE IS AGREEMENTS AMONG EACH OF THE DIFFERENT CREDITOR GROUPS WHICH HAVE A DIFFERENT SET OF STANDINGS WITH THE COMPANY IN THIS PROCESS. IMPORTANTLY, $3.5 BILLION IS OWED TO THE TOP 50 CREDITORS. 760 MILLION OF THAT IS TIED TO GEMINI. GEMINI EARNED BUSINESS THERE IS MORE THAN 340,000 CUSTOMERS THAT ARE OWED MONEY. WHILE YOU WATCH THIS PROGRESS THE RELATIONSHIP WITH GEMINI WILL BE VERY IMPORTANT ESPECIALLY AS YOU WATCH THEM TURN THE PAGE ON THIS. INTERESTINGLY WHY THIS IS SO IMPORTANT IS BECAUSE THERE IS SENSE OF CONTAINMENT HERE. IF YOU LOOK AT THE BANKRUPTCY
FILINGS IT ALLUDES TO THE RELATIONSHIP BETWEEN DIGITAL CURRENCY GROUP, A PARENT COMPANY. GENESIS AND GENESIS GLOBAL CAPITAL IN PARTICULAR BUT THE FACT THIS IS CONTAINED TO GENESIS GLOBAL CAPITAL AND DOESN'T INVOLVE SAY THE GENESIS TRADING BUSINESS SHOWS YOU THIS IS CONTAINED $3.5 BILLION IS A LOT OF MONEY BUT AT THE SAME TIME WE KNOW WERE A LOT OF THOSE CREDITORS ARE, WHO THEY ARE, AND HOW MUCH THEY ARE OWED. >> UNLIKE THE FTX BANKRUPTCY WHICH DOES NOT FEEL CONTAINED. THERE WAS TALKS OF EXCHANGING AGAIN HOW ARE PEOPLE REACTING TO THAT? >> THERE ARE A LOT OF MIXED FEELINGS ABOUT THAT BECAUSE THE BRAND ITSELF CARRIES A LOT OF DIGITAL, THAT'S A BETTER WORD FOR IT. TO THE POINT THAT I THINK IT STRUCK ME ITS HISTORY THAT CAME OUT LATE LAST NIGHT OUT OF THE COURT PAPERS THAT HAVE BEEN COMING THROUGH THE LAWYERS HERE FOR SAM BANKMAN-FRIED A CAR DROVE INTO A BARRICADE AT HIS PARENTS HOME.
I THOUGHT THAT WAS PRETTY STRIKING. WHEN THE SECURITY GUARD CONFRONTED THE THREE MEN THE MEN SAID SOMETHING TO THE EFFECT OF YOU WON'T BE ABLE TO KEEP US OUT. THE REASON THIS WAS IN FILINGS WAS BECAUSE THERE'S BEEN A LOT OF NOTORIETY BEHIND THE CASE AND THEY ARE TRYING TO KEEP THE NAMES PRIVATE OF THE PEOPLE WHO ARE HELPING BACK THIS BILL PACKAGE. >> LET'S TALK ABOUT NAMES INVOLVED IN FTX RATE OF ONE HAS COME BACK TO THE FLOOR. BRETT HARRISON RAISING MONEY AND WHAT WAS STRIKING TO ME IS WHO EASE -- WHO IS HE IS RAISING MONEY FROM. >> THE STORY HAS BEEN HIGHLY ANTICIPATED.
THERE HAVE BEEN LEAKS OF HIS CONVERSATIONS. HE LEFT ON'S BEFORE THE IMPLOSION A LOT OF INFORMATION HAS COME OUT BETWEEN HIS DIFFICULT RELATIONSHIP BETWEEN SAM BANKMAN-FRIED AND HIM. HE HAD A TWITTER THREAD OVER THE WEEKEND. WE HAD A CONVERSATION ABOUT WHAT HE WANTS TO ACCOMPLISH. HE RAISED $5 MILLION THROUGH COINBASE TO VENTURES. REMEMBER A LOT OF THESE PARTIES HERE ARE KIND OF FTX ADVERSARIES IF YOU WILL.
THE SKYBRIDGE BUSINESS, IT'S ASSOCIATED WITH HAD AN INVESTMENT FROM THE FTX UNIT. HE'S TRYING TO HIRE FORMER FTX EMPLOYEES AND TRYING TO BUILD TRADING INFRASTRUCTURE FOR INSTITUTIONS. HE WANTS TO RE-INSTILL CONFIDENCE IN THE INDUSTRY. >> THERE ARE SOME OTHER PEOPLE THAT WANT TO REINSTALL CONFIDENCE. SO NIGHT IS GOING TO BE
STICKING AROUND FOR THE NEXT SEGMENT. CFTC COMMISSIONER KRISTI GOLDSMITH ROMERO SAID THE IMPLOSION MUST LEAD TO U.S.-BASED CRYPTO COMPANIES. SHE SEWED I URGED -- SHE SAID I URGE CONGRESS TO REGULATE TO SELF CERTIFIED PRODUCTS UNDER THE CURRENT PROCESS THAT LIMITS CFTC OVERSIGHT. IT WOULD BENEFIT FROM GREATER AUTHORITY TO ACCESS CERTAIN INFORMATION ON UNREGULATED AFFILIATES WITH APPROPRIATE CONDITIONS. COMMISSIONER GOLDSMITH JOINS US NOW. COMMISSIONER, FASCINATING THAT
ULTIMATELY WHERE YOU ARE CALLING FOR HERE IS YOUR INSTITUTION TO HAVE A BIT MORE POWER. TO HAVE MORE CONTROL. CAN YOU EXPLAIN ABOUT THE CERTIFICATION? WHAT SITUATIONS HAVE YOU SEEN ALREADY? >> ULTIMATELY, WHAT I AM CALLING FOR IS REALLY LIKE MORE COMPREHENSIVE PULL OF GOVERNMENT REGULATION. VERY SIMILAR TO WHAT WE HAVE TO FINANCE IS GOING TO BE MULTIPLE GOVERNMENT AGENCIES. IT'S GOING TO HAVE GREATER CUSTOMER PROTECTIONS AND STRONGER FEDERAL OVERSIGHT. IF WE HAVE THIS ADDITIONAL AUTHORITY PROVIDED TO THE CFTC OVER THE REGULAR BITCOIN MARKET I DON'T THINK WE CAN JUST POUR OVER THE ROLES THAT WE HAVE NOW THAT RELATES TO THE FUTURES MARKET THAT WE HAVE LIKE THE BITCOIN FUTURES.
I THINK WE DON'T WANT TO FAST-TRACK ASSETS THAT ARE GOING TO BE LISTED ON EXCHANGES. THE CFTC SHOULD HAVE MORE AUTHORITY OVER THAT. WE WANT TO MAKE SURE SOMEONE IS NOT TRYING TO DO AN END RUN. WE WANT TO MAKE SURE WE CAN
PROTECT THE MARKET AGAINST MANIPULATION. AT THIS POINT, IT'S GOING TO BE VERY DIFFICULT FOR SOME EXCHANGE TO SELF CERTIFIED THAT WHAT THEY PUT ON IS READILY SUSCEPTIBLE TO MANIPULATION. IT'S REALLY KIND OF COMING UP WITH THE NEW PROCESS BECAUSE IT WOULD BE A NEW MARKET AND IT WOULD NEED STRONG OVERSIGHT. >> WHAT WAS SO INTERESTING IS PERHAPS THE LACK OF OVERSIGHT AND DUE DILIGENCE FROM SOME INTERNAL PLAYERS AS THIS NEW AREA OF CRYPTO EVOLVED THERE WAS A LOT OF MONEY. PEOPLE POURING INVESTMENT INTO NOW FAILED COMPANIES.
MANY OF US ASKED WHAT ABOUT THOSE INSTITUTIONAL PLAYERS? WHAT ABOUT THE DUE DILIGENCE THAT WAS LACKING? PEOPLE HAVE BEEN AROUND FOR YEARS THAT SEEM TO LOSE HEAD OF THE SITUATION. ARE THOSE QUESTIONS BEING ASKED ABOUT ACCOUNTABILITY? READ FOR THINK YOU HIT THE NAIL IN THE HEAD. THERE ARE SERIOUS QUESTIONS ABOUT WHETHER THEY FULFILLED DUTIES TO THEIR CLIENTS? WHAT KIND OF DUE DILIGENCE DID THEY CONDUCT? IF YOU ARE INVESTING HUNDREDS OF MILLIONS OF DOLLARS IN A COMPANY AND A YEAR LATER OR SO YOU HAVE TO WRITE IT DOWN TO ZERO OR CLOSE TO ZERO, THAT IS ALREADY GOING TO RAISE QUESTIONS ABOUT THE DUE DILIGENCE YOU ARE CONDUCTING BUT WHEN THE NEW FTX CEO REPORTED ON THE BANKRUPTCY FUNDS THERE IS NO RECORD KEEPING. THERE IS NO CONTROLS. WE HAVE AN AUDITOR NO ONE HAS EVER HEARD OF AND YOU ASK HOW IS THAT POSSIBLE? DID THEY TURN A BLIND EYE TO IT? WE KNOW THAT FTX AND THE FOUNDER REALLY CHASED TRYING TO GET THE PUBLIC TRUST, EVERYTHING THEY DID, WE ARE TRUSTWORTHY, YOU CAN TRUST IN US. WE KNOW NOW THAT'S NOT TRUE. THEY VIOLATED THE TRUST. WE
HAVE THIS SITUATION WHERE THE MARKET WAS HOT. THERE WAS A LOT OF COMPETITION AND THERE WAS A LOT OF EQUITY TO BE HAD. WHY DID THEY TURN A BLIND EYE TO WHAT SHOULD HAVE BEEN FLASHING RED LIGHTS? I DO THINK THERE ARE SERIOUS QUESTIONS THERE. YOU SEE THIS HIGHLY INTERCONNECTED NATURE SO WAS THERE SOME CONFLICT THAT PREVENTED THEM FROM REALLY PAYING ATTENTION TO THE DUE DILIGENCE AND THE FACTS THEY WERE UNCOVERED? >> SOMETHING THAT IS INTERESTING TO ME WHETHER IT IS SELF CERTIFYING ASSETS BEING LISTED OR JUST GOING AHEAD AND PROVIDING CERTAIN PRODUCTS TO CLIENTS, I MEAN HOW MUCH NOW WHAT IS IT CFTC OR THE DEPARTMENT OF JUSTICE HOW MUCH CLEANUP WORK IS THERE TO DO? IT SEEMS LIKE BASED ON THE VELOCITY OF CASES THAT ARE BEING BROUGHT FORWARD THERE IS A LOT OF ENFORCEMENT BY REGULATION AND THERE IS A LOT MORE CONVICTION IN REGULATORS AND AUTHORITIES SAYING, HEY, THESE ARE NEW PRODUCTS WITH THE SAME CLASSIFICATIONS AS SOME OF THE OLD FINANCIAL PRODUCTS WE HAVE SEEN. >> I MEAN I THINK A LOT OF THE PRODUCTS HAVE VERY SIMILAR FEATURES AND THERE IS A LOT OF THE SAME RISK THAT YOU SEE.
THAT YOU SEE IN CRYPTO. FIRST OF ALL, WE HAVE BEEN REGULATING IN THE FUTURES SPACE AND ALLOWING TRADING TO HAPPEN. AS LONG AS IT IS REGISTERED WITH US. FTX ACTUALLY HAD X WHICH IS ONE OF THEIR ENTITIES REGISTERED WITH US. THE FACT OF THE MATTER IS WE
ALSO HAVE TO DO ENFORCEMENT. WE HAVE TO BRING TRUST AND CONFIDENCE TO THE AMERICAN PEOPLE THAT WE ARE DOING OUR JOB. WE HAVE THIS AUTHORITY TO GO IN AND RING ENFORCEMENT ACTIONS. WE HAVE TO DO THAT, IT HELPS KEEP THE MARKET CLEAN AND THAT'S AN IMPORTANT PART OF OUR JOB. I'M A 20 YEAR FEDERAL LAW ENFORCEMENT OFFICIAL SO TO ME ENFORCEMENT IS PART OF REGULATION. BUT WE ARE DOING BOTH AT THE CFTC, TRYING TO SUPERVISE THE TRAINING THAT WE CAN AND BRINGING ENFORCEMENT CASES EVEN THOUGH WE DON'T HAVE REGULATORY AUTHORITY BUT WE HAVE ENFORCEMENT AUTHORITY IN THE CASH MARKET.
>> COMMISSIONER, A SENSITIVE ONE FOR YOU BECAUSE YOU TALK ABOUT CONFIDENCE, WE ASKED OUR OWN AUDIENCE HOW CONFIDENT THEY WERE THAT REGULATION WOULD COME TO BEAR. IN THE WAKE OF FTX, ARE YOU CONFIDENT THE RIGHT CRYPTO REGULATION WILL COME? 38% SAID DON'T HOLD YOUR BREATH AND 36% SAID NO. WHAT CAN YOU DO NOW, WHAT DO YOU THINK YOU ARE ABLE TO GET ACROSS THAT GIVES PEOPLE A CONFIDENCE THAT IT COULD BE BROUGHT? >> I THINK THERE IS A LOT OF PEOPLE IN CONGRESS ON A BIPARTISAN BASIS THAT WANT TO DO SOMETHING. THERE ARE A LOT OF REGULAR PEOPLE GETTING CRUSHED THINK OF CELSIUS AND YOU'RE GOING TO HAVE GENESIS. YOU HAVE A LOT OF PEOPLE WHO NEED PROTECTION SO THERE IS GOODWILL IN CONGRESS TO GET SOMETHING THROUGH.
I DO THINK IT'S APPROPRIATE TO TAKE A PAUSE AFTER FTX FOR CONGRESS TO SAY HAVE WE MADE SURE THAT ANY LEGISLATION WE ARE THINKING ABOUT LIKE ADDRESSES ALL OF THE LESSONS LEARNED AND THAT'S WHAT LED ME TO SAY YOU KNOW WHAT WE SHOULD REALLY THINK ABOUT THIS IDEA I AS A REGULATOR WOULD WANT TO HAVE MORE OVERSIGHT TOOLS OVER EXCHANGES TO BE ABLE TO SAY THAT'S NOT APPROPRIATE TO HAVE SOME INDEPENDENCE GOVERNANCE AND HAVE SOME CONTROL. I THINK THE POSSIBILITY IS THERE BUT LET ME SAY I UNDERSTAND IT'S GOING TO TAKE TIME TO DO THIS RIGHT IN A COMPREHENSIVE WAY BUT WHAT MATTERS THE MOST IS THAT WE GET SOMETHING RIGHT THAT STANDS THE TEST OF TIME. >> IS INTERESTING WITH THE TROUBLED ASSET RELIEF PROGRAM SO YOU HAVE SEEN VERY MESSY UNWINDS. THIS TIME AROUND THERE IS A LOT OF RELIEF THAT THERE WAS A MORE SYSTEMIC PROBLEM TO THE EXTENT YOU ARE STILL WORRIED ABOUT SYSTEMIC PROBLEMS WITH PLACES THAT DO INTERSECT MORE SERIOUSLY WITH THE CURRENT FINANCIAL SYSTEMS, STABLECOINS, HOW MUCH CONCERN DO YOU STILL HAVE? >> I HAVE A LOT OF CONCERN ABOUT FINANCIAL STABILITY RISK LET'S SEPARATE THAT OUT FROM SYSTEMIC RISK.
IT IS NOT SOMETHING WE TAKE OUR EYES OFF OF. WE HAVE TO CONTINUE TO LOOK AT THAT. WHEN YOU LOOK AT ALL THESE PEOPLE HURT AND WHEN YOU LOOK AT THE DOMINO EFFECT THAT HAPPENS WHEN ALL OF THESE DIFFERENT INVESTORS COME IN WE ARE STILL SEEING THE IMPACT OF FTX'S COLLAPSE RIGHT NOW. SYSTEMIC RISK IS GOING TO COME IN MY MIND AS YOU GET MORE LANES BETWEEN THE TRADITIONAL FINANCIAL MARKET IN THE CRYPTO MARKET. OVER THE LAST SIX MONTH I HAVE HEARD MORE AND MORE SAY THEY WANT TO BECOME INTERESTED. THAT IS WHY I HAVE BEEN WARNING YOU REALLY HAVE TO UNDERSTAND HOW THIS OPERATES. YOU HAVE TO UNDERSTAND WHERE
THERE ARE SOME WEAKNESSES CALMING CUSTOMER ASSETS IS A WEAKNESS. CYBERSECURITY, THE SAME YOU HAVE TO HAVE STRONG CYBERSECURITY ISSUES. AS THE TRADITIONAL FINANCIAL PLAYERS ARE LOOKING INTO THIS THERE IS STILL SOME INTEREST BUT HOPEFULLY THIS IS GOING TO TAKE EVERYONE, MAKE A PAUSE AND DO BETTER DUE DILIGENCE. >> I'M KIND OF CURIOUS ABOUT THE DIFFERENCE BETWEEN WHAT HAPPEN GENESIS AND WILL HAPPEN OVER FTX. NO ONE HAS BEEN ACCUSED OF ANYTHING AT GENESIS BUT THERE HAS BEEN A CURSE -- ACCUSATIONS ABOUT THE COMPANY.
NOW THAT THEY ARE GOING THROUGH A BANKRUPTCY PROCESS OF THEIR OWN HOW DOES REGULATOR LOOK AT SOMETHING LIKE THAT IN TERMS OF JUST GENERAL CORPORATE BEHAVIOR? >> I'M GOING TO BE CAREFUL ABOUT SPEAKING ABOUT ANY PARTICULAR COMPANY BECAUSE WE ARE A LAW ENFORCEMENT OFFICE. SO I WANT TO BE CAREFUL ABOUT THAT BUT I WILL SAY WE ARE LOOKING ACROSS THE INDUSTRY. WE ARE LOOKING TO WHERE WE ARE GOING TO BE INCREASES GOOD ARE BRINGING CASES CONSTANTLY AGAINST DOW, AGAINST AN ORACLE MANIPULATOR BRINGING CASES, WE BROUGHT A CASE AGAINST TETHER ABOUT HOW THEIR STABLE THERE STABLECOIN IS. OUR JOB IS TO LOOK ACROSS AND SAY WHERE IS IT APPROPRIATE TO BRING THE CASE WHERE IT BRINGS COMPLIANCE WITH THE LAW BUT ALSO SENDS A MESSAGE TO OTHERS IN THE MARKET ABOUT WHAT WE EXPECT GOOD BEHAVIOR. >> COMMISSIONER, GREAT TO HAVE SOME TIME WITH YOU THIS FRIDAY.
AS ALWAYS, THANK YOU SO MUCH FOR YOUR TIME. COMING UP, ELON MUSK COULD LOSE MILLIONS FOR THAT FUNDING SECURED SUITE IN 2018. OUR REPORTER IS IN THAT VERY COURTROOM. THIS IS BLOOMBERG. ♪ >> IN THE LAST HOUR OR SO ELON MUSK HAS BEEN TESTIFYING OVER HIS FUNDING SECURED TWEET BACK IN 2018. TO TAKE TESLA PRIVATE, THAT TWEET COULD POTENTIALLY COST HIM BILLIONS OF DOLLARS IN DAMAGES. IN THE COURTROOM OUR LEGAL REPORTER FOR BLOOMBERG NEWS.
WHAT WERE THE TAKEAWAYS? THIS IS THE EARLY EXCHANGES, THE EARLY PART OF MUSK'S I'M ON THE STAND. >> IT WAS VERY EARLY IN THE SENSE WE HAVE ALL DAY TO HEAR FROM OTHER WITNESSES. EVERYBODY KNEW WE COULD HEAR FROM ELON MUSK BUT WE WEREN'T SURE IF WE WERE GOING TO BEFORE TIME RAN OUT FOR THE DAY. HE CAME IN AND EVERYBODY WAS VERY EXCITED BUT HE SPOKE, HE TESTIFIED FOR ABOUT 30 MINUTES MEANING THAT HE KIND OF CAME AND WENT. HE WILL RETURN ON MONDAY. >> HOW DID HE FEEL? HOW DID HE SEEM? HOW DID OTHER PEOPLE GIVING EVIDENCE SEEM? >> HE SEEMED NERVOUS, REALLY QUITE NERVOUS AT FIRST. HE WAS
VERY QUIET. VERY HESITATING IN HIS RESPONSES. I THINK VERY CAREFUL AND CALCULATED IN WEIGHING WHAT HE IS BEING ASKED. BUT HE VERY QUICKLY WARMED UP AND GOT RELAXED AND EVEN FUNNY IN THE COURTROOM. KIND OF IN A MILD WAY NOT OVERLY HUMOROUS. BUT HE WARMED UP AND GOT KIND OF COMFORTABLE. HIS LAWYER, THE LAWYER
REPRESENTING THE SHAREHOLDERS, WAS ALSO NERVOUS. I THINK HE WAS NERVOUS ASKING ELON MUSK, WITH ELON MUSK ON THE STAND. HE IS BRITISH AND AS YOU KNOW THAT IS KIND OF AUTHORITY AND INTELLIGENCE ESPECIALLY IN BACKWATER SAN FRANCISCO. BUT HE WAS UNSETTLED TOO AND IT TOOK THEM A WILD TO GET USED TO EACH OTHER IS WHAT IT FELT LIKE. >> AND I HAVE NO COMMENT ON THAT.
LET'S REMIND THE AUDIENCE THAT THE PLAINTIFF, THE SHAREHOLDERS BASICALLY ARGUED THEY LOST MONEY DUE TO THE PRICE ON TESLA STOCK IN THE DAYS THAT FOLLOWED THAT 2018 TAKE PRIVATE TWEET. WHAT'S FASCINATING FOR ME AS BEFORE HE WENT NEAR THE COURTHOUSE THE JUDGE HAD MADE A PRETRIAL DECISION OF HIS OWN, A PRETRIAL HEARING DECISION ABOUT HOW THOSE TWEETS SHOULD BE INTERPRETED. CAN YOU TELL US ABOUT THAT BACK ON? >> TO KIND OF CUTTHROAT, THE JUDGE'S RULED THAT THE TWEETS WERE FALSE AND RECKLESS. THOSE ARE KIND OF TO BIG HURDLES THE SHAREHOLDERS HAVE TO CLEAR TO WIN THEIR CASE. IT'S UNUSUAL, IF NOT UNPRECEDENTED, IN A CASE LIKE THIS FOR A JUDGE TO FIND THAT JUDGE TO FIND THAT RULING AHEAD OF TIME AND FURTHERMORE INSTRUCT THE JURY. SO THE TRIAL HAS SETTLED THAT THESE TWEETS WERE FALSE AND THEY WERE RECKLESS. THE QUESTION THEY HAVE TO
CONCERN THEMSELVES WITH IS DOES ELON MUSK KNOW THAT? DOES HE KNOW THAT THEY WERE FALSE AND DOES HE KNOW THAT WHAT HE WAS SAYING WOULD IMPACT SHAREHOLDERS AND MOVE THE PRICE OF THE STOCK? >> IT'S INTERESTING THAT YOU WERE SAYING HE EVENTUALLY WARMED UP, BECAME HUMOROUS, SLIGHTLY. ED MADE AN INTERESTING POINT EARLIER IN THE SHOW PERHAPS WHETHER THE IDEA, THE MOTIVATION IS TO GET HIM RILED UP BECAUSE WE KNOW FROM TWITTER HE CAN BE OUTSPOKEN IS A WAY OF POLITELY SAYING IT. DO YOU THINK THAT IS A TACTIC AT PLAY HERE? >> I DO THINK IT IS A TACTIC. THEY ARE TRYING TO PROVOKE HIM AND THEY ASKED, THEY ASKED QUESTIONS THAT I THINK THEY ARE HEADING IN THAT DIRECTION. I THINK WE ALL RECALL HIS
RESPONSE OR HIS TWEET ABOUT THE HORRIBLE CAVE SITUATION WITH THE CHILDREN IN A STUCK SITUATION IN THAILAND AND HIS HORRIBLE TWEETS ABOUT THAT. AND THE LAWYER ASKED HIM QUESTIONS ABOUT THAT, TRY TO PROVOKE HIM TO MAKE THE POINT THAT WHAT HE SAYS ON TWITTER MATTERS TO TESLA'S SHAREHOLDERS. IN THAT INSTANCE, TESSLER'S SHARES DROPPED SIGNIFICANTLY AFTER HE MADE THAT TWEET. MUSK WAS IT STEADFAST INSISTING THERE WAS NO LINK BETWEEN WHAT HE SAYS AND TEST WAS SHARES. HE SAID THAT REPEATEDLY. HE DID A GOOD JOB OF RESISTING
IT BUT I THINK WE WILL SEE WHERE THIS GOES ON MONDAY. >> JOEL, FASCINATING. YOU JUST JUMPED UP A ROOM ABOVE THE COURTROOM AT SOUTH SO THINK YOU SO MUCH. JOEL ROSENBLATT FOR STICKING AROUND.
COMING UP THE SOBERING REALITY OF LAYOFFS GOING VIRAL THIS WEEK. THIS IS BLOOMBERG. >> GOING VIRAL THE REALITY BEHIND THE TENS OF THOUSANDS OF TECH WORKERS WHO LOST THEIR JOBS #LAYOFFS WAS TRENDING ON TWITTER. SHRINKING ITS GLOBAL WORKFORCE BY ABOUT 6%. ONE TWEET CAUGHT OUR ATTENTION. EVEN THOUGH IT IMO WENT OUT TO GOOGLE EMPLOYEES SOME WHO MISSED IT WERE WAITING IN LINE TO BADGE IN TO THEIR OFFICES.
WE HAVEN'T CORROBORATED THIS OURSELVES BUT IT WAS NOTABLE THAT PEOPLE WERE RESPONDING TO THAT. IT'S REALLY TOUGH TO GET THESE MESSAGES ACROSS. >> GOOGLE LAYOFFS IS THE NUMBER ONE TREND ON GOOGLE TRENDS.
THAT IS THE REALITY WE ARE IN. >> WE WILL KEEP YOU ABREAST OF ALL THAT NEWS. THIS DOES IT FOR BLOOMBERG TECHNOLOGY.
2023-01-21 13:04
