'Bloomberg Technology' Full Show (12/07/2022)
CAROLINE: I AM CAROLINE HYDE. ED: THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: ELON MUSK FEUDING WITH THE SAN FRANCISCO MAYOR AFTER MAKESHIFT BEDROOMS IN THE OFFICE IS A CITY VIOLATION. NOTORIOUS FOR SLEEPING PODS. WE DISCUSS PRECEDENTS AND PRIORITIES. ED: FTX WARNING SIGNS.
HOW DID THE COMPANY WIN OVER SO MANY INVESTORS? WE DISCUSSED DUE DILIGENCE. CAROLINE: MICROSOFT MEETS FTC ON ACTIVISION DEAL AFTER STRIKING AN AGREEMENT WITH NINTENDO. MICROSOFT DOES NOT OWN CALL OF DUTY. BUT FIRST, MARKETS.
THE MOOD MUSIC TURNED SOUR. WE ARE WORRIED ABOUT A FEDERAL RESERVE THAT CONTINUES TO HIKE. THE YIELD CURVE HAS SHOWN A LIGHT. THE MOST NEGATIVE, THE MOST
INVERTED SINCE 1981. UNPRECEDENTED IN THE LAST -- STARTING TO SEE IF ALL EVERMORE WHICH MEANS THAT IS A SIGNAL OF A FED MISTAKE. SO SAYS CATHIE WOOD. SHE IS WORRIED ABOUT WHAT THE SIGNAL SHOWS IN TERMS OF RECESSION, HOW FAR THE FED WILL PUSH US INTO SLOWDOWN. GEOPOLITICS IN THE MIX. WORRIED ABOUT STATEMENTS FROM PUTIN. WHERE HE WOULD GO IN HIS FOCUS ON LOOKING AT OVERALL UKRAINE AND WHAT THAT MEANS IN TERMS OF NUCLEAR OPTIONS.
WIND OUT OF THE SALES IN TERMS OF RISK-TAKING. I WANT TO LOOK AT CHINA BECAUSE WE HAVE MUCH IN TERMS OF A COVID U-TURN. IT TOO IS DOWN. GOLDEN DRAGON CHINA INDEX. ED: SOME OF THE EASING OF COVID RESTRICTIONS IN CHINA NOT HAVING THE SAME BOOST. APPLE IS A KEY NAME. A REPORT FROM BLOOMBERG, IT'S A KEY SUPPLIER LOOKING AT THE AVAILABILITY OF LOWER END IPHONE FOR TEENS AND SAYING DEMAND IS NOT THERE THEY EXPECT LITTLE CHANGE FOR APPLE GOING FORWARD. DO NOT ADJUST YOUR TV SET. IT IS DOWN 43%, THE MOST ON RECORD.
A LOT OF CONCERN ABOUT DEBT AND ITS AGREEMENTS WITH CREDITORS. WE ARE WAITING FOR MORE NEWS THAT MICROSOFT IS MEETING WITH THE FTC OVER THIS DEAL WITH ACTIVISION. TREADING WATER IN ANTICIPATION OF WHAT COMES OUT OF THAT AND TO THE NEXT STEPS WITH THE DEAL. TESLA DOWN FOR A THIRD STRAIGHT DAY. THE LONGEST RUN OF DECLINES IN
TWO WEEKS. TWO KEY PIECES OF NEWS OUT OF ASIA. TESLA CUTTING PRICES IN CHINA TO INCENTIVIZE CONSUMERS. STARTED DELIVERIES IN A NEW MARKET, NOT DOING MUCH TO SUPPORT STOCK. CAROLINE:
IT IS POTENTIALLY A DISTRACTION. MANY A RETAIL INVESTOR IS WORRIED ABOUT ELON MUSK. WE WANT TO DIG INTO THAT RIGHT NOW. WHO ELSE BUT ELON IS SPARRING WITH THE CITY OF SAN FRANCISCO AFTER TWITTER TURNED SOME SPACE IN THEIR HEADQUARTERS TO MAKESHIFT BEDROOMS. TURNS OUT, A VIOLATION OF BUILDING CODES. SARAH FRIER IS HERE WITH MORE.
WE KNOW HE LIKES TO TEST ALONG TWITTER. DOES HE HAVE A LEG TO STAND ON HERE? HOW MUCH OF A FOCUS IS THIS FOR THE CITY? >> THIS CITY HAS SAID THEY NEED TO LOOK INTO ANY COMPLAINTS THAT COME FORWARD. THERE HAVE BEEN COMPLAINTS ABOUT TWITTER OFFICES. THE FACT THEY ARE PUTTING BEDS INTO VARIOUS CONFERENCE ROOMS, WHICH I GUESS THEY HAVE ROOM FOR BECAUSE A LOT OF EMPLOYEES HAVE BEEN LAID OFF. IT IS UNUSUAL TO EXPECT EMPLOYEES TO SLEEP AT THE OFFICE IN AN ACTUAL FURNISHED BEDROOM. DESPITE THE CULTURE YOU ARE SPEAKING ABOUT WITH SLEEPING BAGS AND SNAP PODS. CAROLINE:
TALK TO US MORE GENERALLY ABOUT THE BALANCE OR THE LACK THERE OF. ARE PEOPLE HAVING TO SLEEP ON THE FLOOR? IS THIS SOMETHING THAT HAPPENS AT LARGE, OR IS IT FOCUSED ON THE LAWN? >> YOU SEE THIS ALL THE TIME AT STARTUPS. HIGH-GROWTH COMPANIES. I REMEMBER TALKING TO EMPLOYEES AT SNAPCHAT A FEW YEARS AGO ABOUT HOW THEY HAD TURNED SOME BEDROOMS TO MAYBE DO A CODE VIOLATION THE OPPOSITE DIRECTION. TURNING RESIDENTIAL HOUSING IN THE VENICE, CALIFORNIA INTO OFFICES. I THINK IT IS NOT UNHEARD OF.
WHAT I THINK WE ARE SEEING IS THE PENDULUM SWING FROM BEING IN THE FAVOR OF WORKERS, GIVING WORKERS FLEXIBILITY TO WORK FROM ANYWHERE, TO THIS PERIOD WHERE WE ARE SEEING THIS SPATE OF TECH LAYOFFS AND PEOPLE CONCERNED FOR THEIR JOBS. WILLING TO DO WHATEVER IT TAKES TO PROVE TO THE EMPLOYER THEY ARE A HARD WORKER. THE POWER IS SHIFTING BACK TO THE EMPLOYER RIGHT NOW. ED:
WE REPORTED IN THIS PIECE THAT MUSK IS MAKING THESE ARRANGEMENTS AVAILABLE NOT JUST FOR EXISTING TWITTER STAFF, BUT WORKERS FROM OTHER COMPANIES HE HAS BROUGHT IN. WE HAVE REPORTED IN RECENT WEEKS THAT AT FIRST, YOU HAD TO COME BACK TO THE OFFICE 40 HOURS, THEN SOME WOULD BE WORKING 80. WHAT IS GOING ON INSIDE TWITTER RIGHT NOW? >> EVERYONE HAS TO BE ON THE 10TH FLOOR. IF YOU ARE A DESIGNER, YOU HAD BETTER BE THERE CREATING THIS ENVIRONMENT OF COLLABORATION AND BRAINSTORMING. MUSK WANTS TO FEEL MOMENTUM FROM EMPLOYEES.
THESE ARE THE EMPLOYEES THAT WERE RECRUITED ON THE PROMISE OF WORK FROM ANYWHERE FOREVER. A PIONEER EVEN BEFORE COVID IN THIS IDEA THAT EMPLOYEES COULD BE PRODUCTIVE FROM ANYWHERE THEY COULD LOG INTO THE INTERNET. JACK DORSEY HIMSELF LOVED TO WORK REMOTELY. IT IS A COMPLETELY FLIPPED CULTURE. ONE THING WE NEED TO BE A
LITTLE CONCERNED ABOUT HERE, AT LEAST ON THE WATCH FOR, DOES TWITTER END UP STAYING IN SAN FRANCISCO? WE HAVE SEEN THE FUTURE OF MUSK'S SPATS. ED: MOVING TESLA HEADQUARTERS FROM PALO ALTO TOP AUSTIN, TEXAS. I WANT TO TALK ABOUT WHAT ELON ACTUALLY SAID. HE ACCUSES LONDON BREED OF BEING TOO FOCUSED ON THIS ISSUE AND NOT ENOUGH ON THE FENTANYL CRISIS.
WE HAD THE SAN FRANCISCO DISTRICT ATTORNEY IN OUR OFFICE LAST WEEK GETTING A SENSE OF THE PRIORITIES, WHERE DOES SAN FRANCISCO'S REVIVAL SIT RIGHT NOW? >> THERE IS A LOT OF HOPE FOR A DIFFERENT SET OF CIRCUMSTANCES UNDER THE NEW DISTRICT ATTORNEY BUT IT IS NOT ALL ON HER. THERE IS A LOT OF BRINGING ENERGY BACK TO THE CITY THAT NEEDS TO OCCUR. THE LAYOFFS AT TWITTER PROBABLY HAVE NOT COMPLETELY HELPED. AS HE IS TRYING TO GET PEOPLE
BACK TO THE OFFICE, THERE ARE A LOT OF SAN FRANCISCO-BASED WORKERS WHO NO LONGER HAVE JOBS AT TWITTER. TWITTER, OF ALL COMPANIES IS IN THE MIDDLE OF ONE OF THE MORE CRIME-RIDDEN PARTS OF THE CITY AND COULD BE FEELING CHANGES MORE DRAMATICALLY. ED: THANK YOU VERY MUCH. LET'S GET TO AN UPDATE ON THERANOS' FORMER PRESIDENT.
STILL UNDERWAY. THEATER -- PETER BLOOMBERG JOINS US WITH THE LATEST. WE HAVE BEEN WAITING FOR THIS SINCE JULY. WHAT ARE WE WAITING FOR? >> WE ARE WAITING FOR THE JUDGE TO IMPOSE A SENTENCE. HE WAS CONVICTED OF FRAUD AND THE JUDGE HAS TO DECIDE WHETHER HE WILL GET PRISON, AND IF SO HOW LONG. CAROLINE: GIVEN IT WAS MORE THAN 11 YEARS FOR ELIZABETH HOLMES, MANY EXPECT WHAT? >> SOMEWHERE AROUND THE SAME AMOUNT OF TIME.
IT COULD BE SOMEWHAT LESS OR SOMEWHAT MORE. THE PROSECUTORS HAVE MADE THE CASE THAT THEY ARE EQUALLY CULPABLE FOR DEFRAUDING INVESTORS AND THAT BALWANI, IN ADDITION WAS CONVICTED OF DEFRAUDING PATIENTS. ED: CAROLINE AND I BOTH REMEMBER THE MOMENTS THE SENTENCING WAS PASSED FOR ELIZABETH HOLMES HERSELF. JUST A LITTLE MORE THAN 11 YEARS. AT THE LOWER END, THE PROSECUTORS AND THE JUDGE HAVE DISCUSSED, THAT WAS SEVERE TO MANY BUT OTHERS ARE SAYING IN BALWANI'S CASE IT COULD BE MORE SEVERE. AS I MENTIONED, HE WAS CONVICTED OF ADDITIONAL COUNTS THAT SHE WAS ACQUITTED OF.
WE ARE WAITING ON THE JUDGE TO INDICATE WHETHER HE MAY THINK THAT BALWANI WAS SOMEHOW MORE RESPONSIBLE BECAUSE HE IS MORE EXPERIENCED. HE HAD RUN A SOFTWARE COMPANY IN SILICON VALLEY PRIOR TO TAKING THIS JOB, WHETHER -- WHEREAS SHE WAS 19 YEARS OLD WHEN SHE DROPPED OUT OF STANFORD. SHE WAS THE LESS EXPERIENCED OF THE TWO.
THE OTHER WILDCARD IS THAT DURING HER TRIAL, SHE ACCUSED HIM OF ABUSING HER DURING THEIR RELATIONSHIP. SEXUAL AND PSYCHOLOGICAL ABUSE. WHICH HE, OF COURSE, WAS NOT A WITNESS IN THAT CASE AND DID NOT GET TO SPEAK TO IT AND IT DID NOT COME UP IN HIS OWN TRIAL. IF THE JUDGE HAS ANY CONCLUSIONS IN HIS OWN MIND ABOUT WHETHER BALWANI SOMEHOW MANIPULATED HOMES OR TREATED HER BADLY, THAT COULD FACTOR INTO THE SENTENCE. CAROLINE: THIS BEING KEY ONE IN TERMS OF
PRECEDENT-SETTING. PETER, THANK YOU SO MUCH. MEANWHILE, MORE TO DISCUSS IN TERMS OF THE FUTURE OF INVESTMENTS. -- ONTRACK RAYSHARD DROP, PERHAPS THE SHARPEST IN DECADES. BUT WHAT ABOUT FTX IN PARTICULAR? THIS IS BLOOMBERG. ♪ CAROLINE: LET'S TALK ABOUT VENTURE CAPITAL. NOT TOO HOT RIGHT NOW. ABOUT TO SEE THEIR STEEPEST DROP IN TWO DECADES.
SURPASSING THE DECLINE OF THE FINANCIAL CRISIS. ED LUDLOW, BRING US UP TO SPEED. ED: A DATA SET PUBLISHED ON WEDNESDAY, $286 BILLION DEPLOYED BY VENTURE CAPITALISTS GLOBALLY IN THE FIRST 11 MONTHS OF 2022. ON A YEAR ON YEAR BASIS, THAT IS A DROP OF MORE THAN 40%. A BIG CHANGE. YOU THINK ABOUT THE ENERGY IN
THESE MARKETS IN 2021. YOU HAVE TO GO BACK WELL CLOSE TO 2000 YEARS, FOLLOWING THE DOT COM BUBBLE. THIS IS THE BIGGEST DROP SINCE. IT IS AN INTERESTING
ENVIRONMENT. HIGHER RATES PUTTING A PREMIUM ON CAPITAL. SKITTISHNESS, NERVOUSNESS IN THE GLOBAL ECONOMY. WHAT WAS INTERESTING TO ME WAS CHINA AND THE U.S.. IN CHINA, THE VALUE IS DOWN 50%. IN THE U.S., DOWN 45%. THOSE ARE OUR LEADING MARKETS.
IT IS A CONFLUENCE OF FACTORS, BUT COMING FROM A HIGH BASE IN 2021. IT HAS NOT BEEN A GREAT YEAR. CAROLINE: 2121 WAS EXTRAORDINARY. BRIAN LEE HAS GREAT CONTEXT FOR US. SENIOR VICE PRESIDENT OF CB
INSIGHTS. YOU DO PHENOMENAL WORK CRUNCHING THE DATA AND UNDERSTANDING THE MOOD CHANGE. TALK TO US ABOUT WHERE WE ARE COMING DOWN FROM IN TERMS OF 2021 AND, OVERALL, WHETHER THIS 2022 DEMISE FOLDED INTO 2023. >> WHEN WE TALK ABOUT 2021, AGAINST ALMOST ANY MEASURE IT WAS A RECORD YEAR. NOT ONLY IN TERMS OF THE AMOUNT OF FUNDING GOING TO PRIVATE COMPANIES, BUT THE NUMBER OF DEALS DONE. WE WERE MOVING OUT OF -- AT A
PACE OF ALMOST 100 COMPANIES BEING FUNDED A DAY. CAROLINE: 100 TODAY. >> WHAT WE SAW WAS A BYPRODUCT OF ENORMOUS INFLATED VALUATIONS WE WERE SEEING FROM COMPANIES NOT ONLY IN CRYPTO WHERE OTHER INTERESTING AREAS, BUT TELEHEALTH, SUSTAINABILITY TECH, ETC. AND A LOT OF WAYS, IT FELT LIKE IT WAS TOO MUCH MONEY, DESPITE THE FACT THERE WERE TOO FEW DEALS. CAROLINE: THEREIN LIES SO MANY ISSUES. THE MAIN FOCUS IS FTX. ALL OF THESE CONCERNS BECOME BLAVATNIK IN THEIR DEMISE. WE SEE A LACK OF DUE DILIGENCE.
MONEY FLYING OFF PARTICULAR COMPANIES THAT BLEW UP THERE VALUATIONS EXTRAORDINARILY. ALSO, THE COOLING EFFECT ITS OWN FALL FROM GRACE IS HAVING ON THE REST OF THE MARKET IS THAT IT'S TOO SPAWNED OTHER STARTUPS. IT'S TOO MADE INVESTMENTS. TALK ABOUT THE WORK YOU HAVE DONE. >> WE ARE LEARNING MORE EVERYDAY ABOUT THE WEB OF INVESTMENTS FROM NOT ONLY SAM BANKMAN-FRIED HIMSELF, BUT ALAMEDA RESEARCH VENTURES AND THEIR RELATED ENTITIES. WHAT WE KNOW IS THAT COLLECTIVELY THEY HAVE MADE HUNDREDS OF INVESTMENTS IN PRIVATE COMPANIES ACROSS A WIDE VARIETY OF MARKETS INCLUDING CRYPTO EXCHANGE IS, AND FTS AND BLOCKCHAIN INFRASTRUCTURE. WHAT WE FOUND IN OUR RESEARCH
WAS THAT WHEN WE LOOKED ACROSS THE PORTFOLIO OF COMPANIES, THREE QUARTERS OF THOSE INVESTMENTS WERE IN EARLY-STAGE COMPANIES. WHAT MAKES THIS THORNY IS THAT EACH OF THESE INVESTMENTS WILL HAVE TO BE PROPERLY VALUED AND DISPOSED OF AS WE MOVE THROUGH THE BANKRUPTCY PROGRESS -- PROCESS. THIS PROVIDES CHALLENGES TO COMPANIES WHO TOOK MONEY FROM FTX FOR A COUPLE OF REASONS. NUMBER ONE, THINKING ABOUT THE REPUTATIONAL HIT THAT FTX HAS HAD ON THE CRYPTO INDUSTRY. BUT ALSO COME OF THE BROADER VALUATION DECLINES WE HAVE SEEN A -- SEEN OVER THE PAST YEAR.
IT IS LIKELY WE WILL SEE EQUITY STAKES BEING SOLD AT A SUBSTANTIAL DISCOUNT. PROBABLY 50% OR MORE. THESE TYPES OF EVENTS, AND THIS EVENT IN BANKRUPTCY WILL TRIGGER A REVISION OF EACH COMPANY'S VALUATION, CREATING POTENTIAL ISSUES AS THEY ATTEMPT TO CREATE ADDITIONAL CAPITAL IT IS THAT CAPITAL. IT IS GOING TO BE A DIFFICULT PROCESS FOR SOME OF THESE COMPANIES AS THEY THINK ABOUT HOW THEY MOVE FORWARD TO RAISE ADDITIONAL CAPITAL AFTER THE VALUATION WE NOW HAVE. I WOULD ALSO MENTION QUICKLY
THAT WE ARE ALSO ASSUMING A LOT OF THESE THE STAKES ARE CASH. WHAT WE ARE SEEING FROM SOME OF THE DATA THAT RECENTLY CAME OUT IS THAT SOME COMPANIES WERE FUNDED WITH TOKENS. OBVIOUSLY THAT WOULD DECREASE THE VALUE OF THE EQUITY STAKE TREMENDOUSLY AS THE TOKENS THEMSELVES ARE DRASTIC EARLY MARKED DOWN. -- DRASTICALLY MARKED DOWN.
ED: WE CAN BRING IN SOME OF THE NAMES THAT INVESTED IN FTX, BANKMAN-FRIED HAD TO MARK DOWN THE VALUE OF THEIR STAKES TO ZERO. THE QUESTION I HAVE IS ABOUT DUE DILIGENCE. HOW CAN THESE REPUTABLE FIRMS HAVE MADE THESE DECISIONS AND COME UP WITH THIS RESULT? >> WHILE I CANNOT WEIGH ON THE SPECIFICS OF A PARTICULAR PROCESS, IT IS SAFE TO SAY THAT AT LEAST A BASIC LEVEL OF DUE DILIGENCE WAS DONE WHICH WOULD HAVE THINGS LIKE FINANCIALS, BUT ALSO INFORMATION RELATED TO GOVERNANCE PROTOCOLS. THERE'S TWO THINGS I WOULD SAY. FIRST, IF THERE WAS FRAUD, WHICH BELIEVE THERE IS, IF FRAUD WERE PERPETRATED, IT IS POSSIBLE THERE WERE A NUMBER OF MISREPRESENTATIONS BY SAM BANKMAN-FRIED AND OTHER INDIVIDUALS THAT MUDDIED THE PROCESS. WHILE EVERY INVESTOR IN THESE
COMPANIES PRESUMABLY DIDN'T DO THEIR DUE DILIGENCE, THE DEMAND FOR DEALS AND THE SENSE OF FOAM A WE GOT IN 2021, DEFINITELY AFFECTED NOT ONLY DEAL TERMS AND EVALUATIONS, BUT LIKELY INCREASED THE RISK APPETITE FOR INVESTORS. ED: JUST TO POINT OUT IF I MAY, OF COURSE NO CHARGES HAVE BEEN BROUGHT AGAINST SAM BANKMAN-FRIED YET FOR FRAUD. QUICKLY BEFORE WE WON OUT OF TIME, WHAT DOES THIS DO FOR VALUATIONS AND INTEREST FROM PRIVATE MARKETS? >> WE CLEARLY THINK VALUATIONS ALREADY HAVE BEEN ON A DOWNWARD SLOPE. FROM Q1 OF 2022 ON, WE HAVE
BEEN SEEING REMARKABLE DECLINES IN TERMS OF FUNDING. WE THINK THAT FTX IS ONLY GOING TO COMPOUND SOME OF THE SKITTISHNESS WE HAVE BEEN SEEING IN THIS AREA. THAT SAID, A LOT OF THESE COMPANIES ARE EARLY-STAGE COMPANIES. AS A RESULT, THERE VALUATIONS MIGHT NOT BE HIT AS HARD. AS WELL, YOU WILL SEE
DIFFERENCES IN THOSE PHASES. TO SPACES OF COURSE, BUT BLOCKCHAIN INFRASTRUCTURE. YOU PROBABLY WON'T SEE AS BIG A HIT DIRECTLY ATTRIBUTABLE TO FTX. ED: BRIAN LEE, CB INSIGHTS
INTELLIGENCE. THANK YOU. LAYOFFS ARE ACCELERATING ACROSS TECH COMPANIES. ADOBE HAS SCRAPPED 100 JOBS CONCENTRATED IN SALES. SOME EMPLOYEES WHO LOST THEIR JOBS WERE GIVEN THE OPPORTUNITY TO FIND POSITIONS ELSEWHERE IN THE COMPANY, ACCORDING TO SOURCES. -- SAYING IT DISMISSED 260 STAFFERS, 20% OF ITS EMPLOYEES, CITING CHANGING MACROECONOMIC CONDITIONS AND NEEDING TO REIN IN COST. THE TECH INDUSTRY CUTTING JOBS AT A PACE NEAR TO
THE PANDEMIC. THE SECTOR ANNOUNCED MORE THAN 50,000 CUTS FOR A TOTAL OF 80,000 OR SO THIS YEAR. COMING UP, TOP ANALYST OF THE DAY AND CARVANA.
THE STOCK DOWN 46%. WEDNESDAY'S DROP THE BIGGEST ON RECORD. THIS IS BLOOMBERG. ♪ ED: TIME FOR OUR TOP POLS. CARVANA, CHAIRS SINKING. UNDERPERFORM FROM NEUTRAL. THIS FOLLOWS A BLOOMBERG REPORT THAT THEIR LARGEST CREDITORS, INCLUDING APOLLO GLOBAL, SIGNED A PACT BINDING THEM TO ACT TOGETHER IN NEGOTIATIONS WITH THE COMPANY. THE MOVE IS MEANT TO PREVENT
THE CREDITOR FIGHTING EACH OTHER IN DEBT RESTRUCTURING NEGOTIATIONS, WHICH IS VIEWED NEGATIVELY. INVESTORS SEE A HIGH PROBABILITY OF DEFAULT. TESLA MAY NEED TO MAKE ADDITIONAL PRICE CUTS IN CHINA IN THE COMING YEAR TO STIMULATE DEMAND WHICH COULD PUT MORE PRESSURE ON AUTOMOTIVE GROSS MARGINS, ACCORDING TO BERNSTEIN. SHARES DOWN WEDNESDAY AS IT OFFERS FURTHER INCENTIVES TO CHINESE CUSTOMERS IN AN EFFORT TO BOOST SALES. ONLINE TRAVEL STOCKS FELL. A SPACE TO BE AVOIDED BY INVESTORS, ACCORDING TO WOLFE RESEARCH.
WEDNESDAY, THE FIRM CUT ITS VIEW FROM UNDERWEIGHT FROM MARKET WEIGHT FOLLOWING AN EXPECTED DOWNTURN INTO BONDS. CAROLINE: POOR AIRLINES. ARE YOU GETTING ON A FLIGHT ANYTIME SOON? ED: I MIGHT. BUT, YOU KNOW. I'VE GOT THE STRONGER DOLLAR ON MY SIDE. WHICH IS RARE IN MY TIME. CAROLINE: EXACTLY.
IT IS RATHER NICE WHEN YOU GO BACK TO THE U.K.. ALL IT ALL, CONSTANT PRESSURE ON SOME OF THESE BEATEN UP COMPANIES. BACK UNDER PRESSURE, JUST -- BUT JUST FEELING ECONOMIC HEADWINDS PRESCIENT AT THE MOMENT WHEN IT COMES TO VALUATIONS AND TECHNOLOGY. ED: THEY HAD A BRIGHT SPOT COMING OUT OF THE PANDEMIC. EVERYONE WAS EAGER TO TRAVEL. BUT NOW, REALITY.
YOU CAN LOOK FOR A DEAL ONLINE, BUT IT'S NOT ALWAYS THERE. CAROLINE: WE WILL KEEP YOU UP TO SPEED ON SOME OF THE SHARE PRICE FALLS WE SEE. CAROLINE: WELCOME BACK. ALONGSIDE ED LUDLOW. WE HAVE GOT TO TALK A GAMING. MICROSOFT EXECUTIVES ARE
MEETING WITH THE SCT -- FTC CHAIR TO DISCUSS DETAILS OF THE ACTIVISION BLIZZARD MERGER. MICROSOFT, NINTENDO, AGREEING TO A 10 YEAR DEAL TO BRING CALL OF DUTY TWO TO THE NINTENDO UNIVERSE. THE AGREEMENT ITSELF DEPENDS ON IF MICROSOFT IS ACTUALLY ABLE TO CLOSE THAT $69 BILLION ACQUISITION HERE TO DISCUSS, LEAH NYLUND.
LENA CON IN A ROOM, MICROSOFT EXECUTIVES, HOW MUCH CONVINCING TO THEY NEED TO DO TO GET THIS THROUGH? >> LENA CON HAS BEEN A PRETTY AGGRESSIVE FORCE SINCE SHE WAS NAMED TO THE POST LAST SUMMER. THE FTC UNDER HER ALREADY BROUGHT A SUIT AGAINST META PLATFORMS OVER A PRETTY SMALL VIRTUAL REALITY DEAL THAT THE FTC WAS CONCERNED WOULD GIVE META A REAL LEG UP IN VIRTUAL REALITY AND ALLOW THE SOCIAL NETWORK TO DOMINATE THAT. THEY HAVE A LOT OF CONCERNS ABOUT THE BIG TECH GIANTS USING ACQUISITIONS TO GET A LEG UP OR BECOME DOMINANT. MICROSOFT, ONE OF THE BIG REASONS IT SAYS IT NEEDS THE DEAL IS IT INKS THE FUTURE IS CLOUD GAMING. CROSS-PLATFORM GAMING. YOU DON'T NECESSARILY NEED TO BUY FANCY CONSULS FROM MICROSOFT OR NINTENDO, YOU MIGHT BE ABLE TO ACCESS ALL THE SAME GAMES ON YOUR COMPUTER, PHONE OR MOBILE DEVICE. THERE'S GOING TO BE A LOT OF CONCERN FROM THE FTC ABOUT WHETHER THIS GIVES MICROSOFT TOO MUCH POWER. ED:
IN RECENT DAYS, LENA CON COMMENTED THERE'S A MISCONCEPTION THE FTC IS ANTI-DEAL. IT WAS INTERESTING LAST NIGHT TO LOOK AT A BLOOMBERG TERMINAL AND LOOK AT OUR REPORTING, AND THE HEADLINE ABOUT A 10 YEAR DEAL WITH NINTENDO FOR A PRODUCT THEY DO NOT YET OWN, CALL OF DUTY. ARE THESE THE KINDS OF THINGS THAT LENA CON WANTS TO SEE MICROSOFT DOING IF THEY ARE TO HAVE A CHANCE FOR THIS DEAL TO GO THROUGH? >> MICROSOFT HAS OUTLINED A BUNCH OF THINGS THEY ARE DOING TO TRY TO PLACATE THE FTC. THEY ENTERED A NEUTRALITY YOU -- AGREEMENT OVER POTENTIAL CONCERNS RELATED TO LABOR. THEY ANNOUNCED THEY WERE NO LONGER GOING TO REQUIRE EMPLOYEES TO SIGN NONCOMPETE AGREEMENTS RELATED TO ANY SEXUAL HARASSMENT OR ASSAULT ALLEGATIONS. AGAIN, TRYING TO ASSUAGE SOME
OF THE FTC CONCERNS ABOUT NON-COMPETES. I'M NOT SURPRISED THAT ALL THEY ANNOUNCED THAT RIGHT BEFORE THEY WOULD COME TO WASHINGTON TO MEET. THE IMPORTANT THING ABOUT THE NINTENDO AGREEMENT THEY ANNOUNCED YESTERDAY SAY IS THAT IT ONLY APPLIES TO THE CONSUL. IT NINTENDO WAS GOING TO OFFER A SUBSCRIPTION SERVICE, THEY WOULDN'T DO SINCERELY GET ACCESS. CAROLINE: I WANT TO SHINE A LIGHT ON WHO THEY HAVE NOT STRUCK A DEAL WITH. SONY.
THERE WAS A GREAT QUOTE COMING FROM PHIL SPENCER, THE MAN WHO MANAGES THE BUSINESS, HE WAS SAYING THERE HAS BEEN ONE GAMING INDUSTRY PARTICIPANT THAT HAS BEEN RAISING ALL THE OBJECTIONS, SONY. HE THINKS BASICALLY THEY ARE SPENDING ALL THEIR TIME TALKING TO REGULATORS AND NOT GETTING A DEAL DONE. IS THERE TRUTH IN THAT? >> THERE IS. BRAZIL IS THE ONLY REGULATORY AGENCY THAT HAS SO FAR GIVEN A VERDICT ON THE DEAL. SONY WAS THE MAJOR COMPLAINANT THERE. U.K.
CMA HAS A PROCESS, SO I LOT OF THE FILINGS THAT GO THROUGH THAT ARE MADE PUBLIC. SONY HAS BEEN THE MAIN COMPLAINANT. THEY ARE CONCERNED ABOUT WHAT HAVING ACTIVISION'S LIBRARY OF GAMES WOULD MAKE MICROSOFT THE MORE APPEALING PLATFORM THAN PLAYSTATION. CAROLINE: THANK YOU SO MUCH. WE ALSO WANT TO THANK PHIL
SPENCER. BECAUSE WE ARE GOING TO UPDATE HIS PHOTO. WE WANT TO STICK WITH GAMING, BUT SHOULD -- SHIFT GEARS. WE TALKED A LOT ABOUT CONTENT MODERATION AND FREEDOM OF SPEECH ON MOBILE PLATFORMS FOR A NEW REPORT BY THE ANTI-DEFAMATION LEAGUE SUGGESTS WE LOOK AT IT FROM A GAMING PERSPECTIVE. ACCORDING TO THIS REPORT, WHITE SUPREMACIST IDEAS GAIN SIGNIFICANT EXPOSURE THROUGH ONLINE VIDEO GAMES THIS YEAR. ONE IN FIVE ADULTS REPORTED BEING CONFRONTED BY WHITE SUPREMACIST IDEOLOGIES. THAT IS MORE THAN DOUBLE THE
YEAR EARLIER. HERE TO DISCUSS, DANIEL KELLEY. THE DATA IS SIGNIFICANT. IT IS ALSO BEING TARGETED AT CHILDREN AS WELL. 15% OF PRETEENS. TALK TO US ABOUT THE RESPONSE FROM THE COMPANIES. THE KIND OF GAMES WE ARE SEEING THIS INVOLVED IN AND HOW THEY ARE TACKLING IT.
>> RIGHT NOW, THE ONLY COMPANY THAT HAS AN EXPLICIT POLICY AGAINST WHITE SUPREMACIST EXTREMISM IS ROBLOX. OTHER THAN THAT, YOU DON'T REALLY HAVE ANY OTHER MAJOR GAME COMPANY THAT HAS AN EXPLICITLY -- ON THEIR SERVICE. THE RESULT IS WHAT WE SEE IN THE GAMES THAT MAKE UP THE TOP TIER OF WHERE PLAYERS ARE EXPERIENCING WHITE SUPREMACIST IDEOLOGIES. CALL OF DUTY IS AT THE TOP WITH
44% OF ADULTS BEING EXPOSED. FOLLOWED BY GRAND THEFT AUTO, WORLD OF WARCRAFT AND FORTNITE. CAROLINE: IT IS INTERESTING. COMPANIES IN RESPONSE TO THE STORY BEING WRITTEN UP HAVE BEEN RESPONDING. -- HAS A POLICY OVERALL AND THEY HAVE BEEN TALKING AT LENGTH ABOUT SOME OF THEIR VIEWS OVERALL, A SPOKESPERSON FROM RIOT GAMES HAS BEEN SAYING THEY WILL CREATE AN INCLUSIVE ENVIRONMENT FOR ALL PLAYERS.
IT IS CORE TO THEIR MISSION. CALL OF DUTY'S CODE OF CONDUCT, THEY SAY THEY PROHIBIT HARASSMENT AND DISCRIMINATION AND THAT THERE GAMES ARE DESIGNED FOR JOY. WHEN THEY WANT IT TO BE FOR JOY AND CONNECTION, WHAT CAN THEY DO NOW TO SUPPRESS SUCH HATE SPEECH, SUCH WORDS THAT ARE SO HATEFUL? >> THERE IS A DIFFERENCE BETWEEN HAVING A POLICY AGAINST HATE SPEECH AND HAVING A POLICY AGAINST WHITE SUPREMACIST EXTREMISM AND EXTREMISM GENERALLY. WHAT THESE RESPONSES REALLY SHOW IS HOW EARLY IN THE PROCESS A LOT OF GAME COMPANIES ARE IN BUILDING OUT POLICIES AROUND THESE ISSUES. THEY'RE COMBINING A BUNCH OF DIFFERENT PHENOMENA IN ONLINE SPACES INTO ONE POLICY WHEN IN FACT, YOU LOOK AT SOCIAL MEDIA, THEY SPEND A GOOD AMOUNT OF TIME DIFFERENTIATING BETWEEN WHAT IS EXTREMISM, WHAT IS TERRORISM, WHAT IS HARASSMENT AND HOW DO THESE THINGS MANIFEST ON THEIR PLATFORM. GAME COMPANIES NEED TO SPEND A
LOT MORE TIME BUILDING POLICIES AND OPERATIONALIZING THOSE POLICIES SUCH THAT THEY ARE ABLE TO ACTION AGAINST EXTREMIST CONTENT AS WELL AS FIND IT ON THEIR PLATFORMS. ED: CAN I PUSH YOU ON THAT POINT? IN PARTICULAR, QUESTIONS AROUND TECHNOLOGY. ARE THERE ANY TECHNOLOGICAL SOLUTIONS THAT ADL IS -- TOP-TIER NAMES IN THE GAMING INDUSTRY. TO IMPROVE THE SITUATION.
>> ONE AREA WHERE COMPANIES CAN STAND TO INVEST MORE IS AROUND VOICE CHAT MODERATION. RIGHT NOW, A LOT OF TOOLS THAT ARE AVAILABLE ARE FOCUSED ON TEXT. THE TECHNOLOGY TO DETECT AND ACTION CONTENT IN VOICE CHAT IS NASCENT IN COMPARISON. I WOULD RECOMMEND COMPANIES INVEST IN DEVELOPING THE TECHNOLOGY TO BEING ABLE TO DO VOICE CHAT MODERATION AT SCALE. ED: SOME OF THE GROUPS IN YOUR RESEARCH AND EXPERIENCE TARGET GAMING, AND IN PARTICULAR ONLINE GAMING PLATFORMS BECAUSE THEY THINK IT IS AN AREA OF VULNERABILITY. IN OTHER WORDS, OPPORTUNITY.
>> THE FACT THAT MODERATION IS SO LAX GIVES AN OPPORTUNITY TO PEOPLE WHO WANT TO ABUSE IT. EITHER EXTREMISTS WHO WANT TO USE IT FOR THEIR OWN ENDS, OR YOUNG PEOPLE WHO WANT TO USE IT TO EXPLORE SOME OF THESE HATEFUL IDEOLOGIES. IF YOU LOOK AT THE REPORT THE NEW ZEALAND GOVERNMENT PUT OUT IN 2019 ABOUT THE RADICALIZATION OF THE CHRISTCHURCH SHOOTER. HE STARTED HIS JOURNEY IN ONLINE GAMES, TESTING THE WATERS BY EXPERIMENTING WITH HATEFUL IDEOLOGY. HE WAS FORMERLY ERRATIC -- FORMALLY RADICALIZED IN TRADITIONAL SOCIAL MEDIA, BUT BEGAN HIS JOURNEY IN ONLINE GAMES. IT HAS BECOME A PROVING GROUND FOR PEOPLE WHO ARE INTERESTED AND WANT TO EXPRESS THESE IDEAS AND IT IS UP TO THE COMPANIES AND COMMUNITIES TO PUSH BACK.
CAROLINE: DATA THEY WILL BE AT -- DATA THEY WILL BE DIGESTING AT THE ANTI-DEFAMATION LEAGUE. DANIEL KELLEY. WE WANT TO BRING YOU BREAKING NEWS. SONNY BALWANI, COO AT SARAH KNOWS -- THERE ARE TWO HAS BEEN SENTENCED 13 YEARS. HE WAS THE FORMER PRESIDENT CONVICTED OF CONSPIRING WITH ELIZABETH HOLMES WHO GOT MORE THAN 11 YEARS. THE C.O.O.
IS GETTING 150 FIVE MONTHS ALL TOLD. 20 MONTHS MORE THAN ELIZABETH HOLMES. OVERALL, IT JUDGE WILL DECIDE HOW MUCH RESTITUTION BALWANI MUST PAY. HE WAS CONVICTED EARLY THIS
YEAR ON 12 COUNTS OF WIRE FRAUD, CONSPIRACY TO COMMIT WIRE FRAUD AS WELL. WE FOCUS IN ON THE LONG-RUNNING SAGA WHEN IT COMES TO THIS STARTUP. AS IT DRAWS TO A CLOSE. ED: THERE WAS AN EXPECTATION HE MIGHT GET A MORE SEVERE SENTENCE. LET'S GET TO OTHER STORIES.
ROBINHOOD SAYS ACTIVITY ON THE PLATFORM IS STEADY, BUT MUCH LOWER THAN 2021. ROBINHOOD REPORTED MONTHLY ACTIVE USERS IN NOVEMBER AT 12.5 MILLION. 33% FEWER THAN THE 18 MILLION USERS IT REPORTED IN 2021. CRYPTO VOLUME DOWN 62% YEAR-OVER-YEAR.
EQUITIES TRADING VOLUME DOWN 54%. SHARES OF ROBIN HOOD DOWN 47% YEAR-TO-DATE. THINGS ARE NOT LOOKING BETTER FOR COINBASE. COMING UP, FDX'S IMPACT ON RETAIL INVESTOR TRENDS AND INSTITUTIONAL ADOPTION OF CRIP THOUGH. FIRST, LET'S LOOK AT AN FTS. THERE DOWN TO A 16 MONTH LOW FOLLOWING THE FTX BLOWUP. THIS IS BLOOMBERG.
CAROLINE: WE JUST HAD A GREAT CONVERSATION ABOUT SOME OF THE IMPACT IT IS HAD ON THEIR FUNDING ISSUES AND FUNDING ISSUES FURTHER COMPANIES. LET'S KEEP TALKING ABOUT THE CHILL OF THIS CRYPTO WINTER WITH SONALI BASAK WHO WILL WALK US THROUGH SOME OF THE FIRMS CURRENTLY FACING CONCERNS. SONALI: LOOK OUTSIDE FTX BECAUSE THERE ARE OTHER FIRMS THAT ARE FACING ISSUES.
I WANT TO START WITH GENESIS. A LENDING BUSINESS THAT FACED WITHDRAWALS, THE INTERIM CEO CAME OUT WITH A LETTER TO INVESTORS GIVING A GENERAL SENSE OF TIMELINE, WHICH IS HELPFUL TO UNDERSTAND. THEY HAVE HIRED A RESTRUCTURING ADVISOR.
PART OF THE LETTER SAYING THEY WILL ANTICIPATE ADDITIONAL WEEKS RATHER THAN DAYS TO SORT THIS OUT. IN SOME WAYS, THAT CREATES CALM BECAUSE YOU HAVE A TIMELINE. THAT MEANS WEEKS OF ANXIETY, RATHER THAN DAYS, TO FIGURE OUT WHAT THE TIMELINE WILL BE AND WHETHER THEY HAVE TO SEEK A MORE SEVERE COMING TOGETHER ON THIS ISSUE.
THAT IS GENESIS ITSELF. MOVING OVER TO EXCHANGES. IN THE EXCHANGE WORLD, THERE'S LOTS OF INTERESTING THINGS HAPPENING. COINBASE, SIMPLE STORY. THEY SAY REVENUE WILL FALL 50% THIS YEAR. NOT SURE WHAT IT WILL LOOK LIKE NEXT YEAR, BUT SO MUCH OF THIS IS ABOUT WHAT IS HAPPENING IN THE BROAD INDUSTRY. I WANT TO TALK ABOUT WHAT THIS MEANS IN TERMS OF HOW OTHER EXCHANGES ARE REACTING IN TERMS OF COMPETITIVE PRESSURE.
YOU HAVE BINANCE U.S. CUTTING FEES. IT WAS BOUND TO HAPPEN. BOUND TO HAPPEN, THIS FEE WAR YOU ARE SEEING. SIMILAR TO WHAT YOU SAW IN
TRADITIONAL FINANCE. WHAT DOES THAT LOOK LIKE? VOLUME-BASED DISCOUNTS. WHEN YOU GO OVER A CERTAIN THRESHOLD IN TRADING, THIS IS SOMETHING THEY ARE PROUD OF. THEY ARE PIONEERS. BUT THESE MOVES ARE GOING TO CONTINUOUSLY IMPACT REVENUE AS WE SEE THEM PUT PRESSURE ON THE INDUSTRY. LASTLY, SUSHI SWAP.
CENTRALIZED EXCHANGES. EXACTLY. WHAT IS HAPPENING? WE HAVE THE CHIEF EXPLAINING THERE IS A LIQUIDITY ISSUE THAT COULD BE CREATED. THE TOKEN PLUNGED, 18 MONTHS OF RUNWAY LEFT. FACING SIMILAR OPTICALS. THEY HAVE SAID IN THIS LETTER THAT THEY DO NOT NEED TO NECESSARILY GO BY THE WAY OF ALL OF THESE OTHER FIRMS THAT ARE FACING MORE SEVERE ISSUES, BUT TO STAVE OFF ISSUES THEY NEED TO MAKE CHANGES IN TERMS OF HOW THEY FEEL ABOUT THE TOKEN ONYX. ED: THANK YOU. HOW ARE YOU ACROSS SO MANY THINGS? ZOOMING OUT TO THE FTX IMPACT ON INSTITUTIONAL ADOPTION, LET'S DISCUSS WITH THE CEO OF FRONT FINANCIAL, WHICH ADVISES TRADITIONAL FIRMS ON WAYS TO PARTICIPATE IN A CRYPTO SPACE.
IT'S VALUATION HAS FLUCTUATED TO AROUND $11 MILLION DURING THIS DOWNTURN. CLEARLY THERE IS AN IMPACT WHETHER YOU ARE A RETAIL INVESTOR, AN INSTITUTIONAL INVESTOR, CONSIDERING DIPPING YOUR TOE. WHAT IS THE MOOD MUSIC FOR THE CLIENTS YOU SERVE? >> THANK YOU FOR HAVING ME. IT HAS DEFTLY HAD A MAJOR
IMPACT ON SENTIMENT. DEFINITELY THERE HAS BEEN MANY INSTITUTIONAL INVESTORS WHO HAVE BEGUN PLANNING. RECENTLY, THE DISASTERS IN GENERAL MARKET DOWNTURN AS A WHOLE HAS CAUSED THEM TO STEP BACK AND MAYBE RECONSIDER THEM ALTOGETHER. OUR FIRM HAS BEEN AROUND FOR
OVER FOUR YEARS. WE WERE BORN IN 2018 AND THERE IS CONSIDERABLY MORE INSTITUTIONS STICKING AROUND THIS TIME THAN THERE WAS PREVIOUSLY. IN 2018, IT WAS REALLY AGGRESSIVE. NOTABLY, CBOE KILLING BITCOIN WAS EXTREME. YOU'RE SEEING MANY INSTITUTIONS
STICK WITH CRYPTO THIS TIME AROUND AND SEE AN OPPORTUNITY IN SPITE OF SENTIMENT BEING LOW. ED: DO YOU HAVE ANY EXPOSURE TO FTX OR ANY OF SAN BANKMAN-FRIED 'S COMPANIES? ANY FINANCIAL RELATIONSHIPS TO HIM? >> NO. WE HAVE NO DIRECT, NO ACCOUNTS WITH FTX OR ANY OTHER RELATIONSHIPS LIKE THAT. HOWEVER, WE ARE A FIRM THAT IS OPERATING IN THIS INDUSTRY AND THERE IS INDIRECT IMPACTS, AS YOU SUGGESTED. CAROLINE: TALK TO US ABOUT THE SENSE OF HOW MANY INSTITUTIONS ARE COMING TO YOU. HOW MANY CLIENTS DO YOU HAVE?
HOW MANY WANT TO BE IN THE SPACE? >> WE HAVE A BROAD INSTITUTIONAL CLIENT. THERE'S AN INSTITUTIONAL CLIENT IN CRYPTO WHICH IS HERE TO STAY. I DEFINED THOSE AS BITCOIN MINING FIRMS, LARGE BLOCKCHAIN DEVELOPING COMPANIES, PAYMENT PROCESSES ACCEPTING CRYPTOCURRENCIES THAT WANT A DEAL. AND THEN THERE IS THE ACTIVE MANAGER, WHICH HAS KIND OF BEEN VERY SLOW AND HAS HAD A SLOW ADOPTION CYCLE. IN A LOT OF WAYS, THE ACTIVE MANAGER HAS HAD TROUBLE SEEING WHERE THEY FIT INTO THIS SPACE. THE SPACE IS SO VOLATILE, IT IS
NOT PALATABLE FOR FIRMS THAT ARE TRYING TO FOCUS ON STRONG RISK-ADJUSTED RETURNS AND TARGETING 10% TO 20% ANNUAL RETURNS. WE DID START TO SEE AT THE END OF THE YEAR, INSTITUTIONS DOING THE ARBITRAGE DYNAMICS. FOR EXAMPLE, THERE ARE OFTEN TIMES WHERE CRYPTO TRADERS ARE WILLING TO BORROW U.S. DOLLARS AT FAR HIGHER RATES THAN YOU SEE IN BORROWING MARKETS. JUST DUE TO THE LACK OF DOLLARS IN THE ECOSYSTEM ALTOGETHER.
THESE DYNAMICS REALLY PRESENT ARBITRAGE, ALPHA GENERATION OPPORTUNITIES THAT ARE UNIQUE TO A SPACELIKE CRYPTO. PEOPLE ARE STARTING TO UNDERSTAND. THOSE CLIENTS ARE COMING IN THE TENS, NOT THE HUNDREDS. BUT IT IS HAPPENING FOR SURE. >> YOU PUBLICLY TRADED COMPANY AND LIKE MUCH OF THE SPACE SEEN A PARTICULAR FALL IN SHARE PRICE AND MARKET CAP.
WHEN IT COMES TO TRANSPARENCY, ARE YOU PUTTING OUT HOW MANY CUSTOMERS YOU HAVE? ARE YOU PUTTING OUT WHAT REVENUE STATEMENTS LOOK LIKE? ARE WE EXPECTING FEWER PEOPLE TO ENTER THE SPACE AND BE SERVED LIKE A -- BY A COMPANY LIKE YOURS? >> THAT'S A COOPERATIVE QUESTION. WE WENT PUBLIC AT THE END OF APRIL AS THE MARKET STARTED TO ACCELERATE SELLOFF. WE HAVE BEEN IN A POSITION WHERE WE HAVEN'T HAD TO GUIDE THE MARKET THAT MUCH IN TERMS OF EXPECTATIONS AND WE ARE FINDING WAYS TO DO THAT. AS WE UNDERSTAND THE ENVIRONMENT TODAY WERE COMING INTO. FOR FIRMS LIKE OURS, IT IS AN INTERESTING OPPORTUNITY LANDSCAPE BECAUSE WE ARE GETTING , AS OF NOW, GETTING OUT OF THIS RELATIVELY UNSCATHED. LOTS OF COMPETITORS ARE GOING OUT OF BUSINESS. WE HAVE SEEN A LARGE INFLUX OF
CLIENTS LOOKING TO DO TRADES WITH NATIONAL. CAROLINE: WHAT NUMBERS ARE WE TALKING? >> WE ARE IN THE TENS, THE TENS OF CLIENTS COMING TO US IN THE WEEKS AND MONTHS. THAT IS MATERIAL FOR US. A LOT OF TIME, THE INSTITUTIONAL WAVE OF HAS BEEN EXAGGERATED IN TERMS OF WHAT IS ACTUALLY HAPPENING. PEOPLE HAVE BEEN TAKING A VERY BROAD USE OF THE WORD INSTITUTION BUT WE ARE PLEASED WITH THE PROGRESS WE HAVE BEEN SEEING. CAROLINE: THANK YOU. STEPHAN WHEELER. COMING UP, SO MUCH MORE TO TALK ABOUT. OUR FOR THIS IS ALSO A TIME OF YEAR WHEN TRICKERY PEAKS ON AMAZON BECAUSE SHOPPERS ARE SPENDING SO MUCH. U.S.
CHOPPERS ARE GOING TO SPEND ABOUT $120 BILLION ONLINE. AMAZON POLICIES PROHIBIT SELLERS FROM PUTTING PRODUCTS IN THE WRONG CATEGORIES. THIS EXAMPLE ALONE SHOWS HOW ENFORCEMENT IS HIT OR MISS. CAROLINE: I MUST HAVE BEEN HAD.
ED: WINDSCREEN FLUID PIPES? WHAT? CAROLINE: IT IS ENTREPRENEURIAL TO SAY THE LEAST. PLAYING THE SYSTEM. IT'S A GREAT SPEECH -- GREAT PIECE BY SPENCER.
2022-12-08 19:21
