Tesla a Tariff Winner, Crypto Welcomes Aktins for SEC | Bloomberg Technology
>> FROM THE HEART OF WHERE INNOVATION, MONEY, AND POWER COLLIDE IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. ♪ CAROLINE: LIVE FROM NEW YORK I'M CAROLINE HYDE AND THIS IS BLOOMBERG TECHNOLOGY. TARIFF WINNERS AND LOSERS IN THE EB INDUSTRY AS PRESIDENT TRUMP SIGNED A 25% TARIFF ON AUTO IMPORTS.
PLUS COREWEAVE TESTS THE IPO AND AI APPETITE. OPENAI SHOWS CONTINUED AI OPTIMISM, FINALIZING A $40 BILLION FUNDING ROUND LED BY SOFTBANK, THE LARGEST OF ALL TIME. FIRST WE CHECK IN ON MARKETS WHICH ARE BEING WHIPSAWED AT THE MOMENT. WE STARTED IN THE RED AND NOW WE ARE MANAGING TO PUSH INTO THE GREEN. WE ARE LET HIGHER BY NAMES I WILL REVEAL IN A MOMENT.
ON THE DOWNSIDE IS AMD, BEING DOWNSIDE FOR ITS LACK OF COMPETITIVE EDGE. MOOD MUSIC TRYING TO DIGEST THE ONGOING TARIFF NARRATIVE COMING FROM THE WHITE HOUSE, WHAT IT MEANS FOR THE AUTO SECTOR. ON A POINTS PERSPECTIVE THE BIGGEST DRAG HIGHER IS TESLA COME UP 6% OR 7%.
THIS AS IT MAKES AN AWFUL LOT OF COMPONENTS OF ITS CARS RIGHT HERE AT UNITED STATES. IT HAS EXPOSURE TO MEXICO BUT LESS IN COMPETITORS. WE ALSO SEE RIVIAN UP 6.3%, FOCUSED ON HOW EB'S CAN BE OWNING THEIR OWN SUPPLY CHAIN UNLIKE THE LIKES OF FORD, UNLIKE THE LIKES OF GM COME UP 6.8% WHERE THEY ARE SIGNIFICANTLY EXPOSED TO SUPPLY CHAINS COMING FROM MEXICO AND CANADA.
LET'S TIE THIS ALL TOGETHER WITH THE TECH PERSPECTIVE. MIKE SHEPPARD JOINS US WITH MORE. IT IS SO INTERESTING IN THE HAVES AND HAVE-NOTS. TELUS THE UPDATE OF WHAT WILL BE COMING FROM THE WHITE HOUSE IN APRIL. MIKE: DONALD TRUMP PREVIEWED SOME OF THAT YESTERDAY AS HE UNFURLED THOSE AUTO TARIFFS. WHAT WE CAN EXPECT ON APRIL 2 -- WHAT THE PRESIDENT IS CALLING LIBERATION DAY -- IS WHAT HE CALLS AROUND OF RECIPROCAL TARIFFS TO EVEN OUT THE TRADING RELATIONSHIPS IN HIS VIEW WITH PARTNERS AROUND THE WORLD.
THESE INCLUDE COUNTRIES THAT IN THE U.S. POSITION PUT AMERICAN EXPORTERS AND PRODUCTS AT A DISADVANTAGE WHEN THEY ARE EXPORTED ABROAD AND HE IS TRYING TO LEVEL THE PLAYING FIELD BY IMPOSING TARIFFS AGAINST THOSE TRADING PARTNERS. SOME OF THE BIGGEST TARGETS WE WILL SEE WILL BE THE EUROPEAN UNION AND OTHER COUNTRIES WHERE THERE IS IMBALANCE. FOR TECH ONE AREA OF CONCERN COULD BE TAIWAN. IT IS A KEY TRADING PARTNER BUT ALSO HAS A HUGE TRADE SURPLUS WITH RESPECT TO THE U.S.. IT ALSO HAPPENS TO BE A MAJOR SOURCE OF SEMICONDUCTORS NVIDIA AND AMD HAD DESIGNED BUT HAD PRODUCED BY TSMC.
THIS IS SOMETHING THE TECH INDUSTRY WILL BE WATCHING CLOSELY AND ON SEMICONDUCTORS TRUMP HAS PROMISED POSSIBLY BUT HAS NOT GUARANTEED LEVIES ON IMPORTS OF CHIPS AS WELL, POSSIBLY COMING APRIL 2. WE ARE UNCERTAIN ABOUT THAT. THE AUTO TARIFFS WERE SUPPOSED TO COME APRIL 2. HE MOVED THEM UP BY SEVERAL DAYS. WE ARE IN A WAIT AND SEE MODE. MATT: I LOVE HOW YOU -- CAROLINE: I LOVE HOW YOU BROADEN THIS US OUT ACROSS SEVERAL INDUSTRIES. LET'S GO BACK TO AUTOS.
TESLA BEING SEEN BY THE MARKET AS SOMEONE WHO HAS A PROTECTION FROM THE SORT OF A TARIFF. ELON MUSK POSTING THEY ARE EXPOSED, JUST NOT TO THE TUNE OF GM OR FORD. MICHAEL: THAT'S RIGHT IN THEY DO HAVE SOME INSULATION FROM IT FOR TWO REASONS. ONE YOU INDICATED AT THE TOP TALKING ABOUT THE MARKET IMPACT. THEY MAKE ALL OF THEIR U.S.
SOLD VEHICLES IN CALIFORNIA AND TEXAS. THEY HAVE NO EXPOSURE WHEN IT COMES TO FINISHED CARS AND VEHICLES BEING BROUGHT INTO THE UNITED STATES. EVEN ON THE COMPONENT SIDE, MOST OF THEIR VEHICLES THEY HAVE AT LEAST 16% WERE UP TO 75% DEPENDING ON THE MODEL OF COMPONENTS MADE IN THE U.S.. THEY HAVE SOME INSULATION THERE
THAT OFFERS THEM SOME PROTECTION FROM THE WORST OF IT. COMPARED TO RIVALS LIKE HYUNDAI OR GM EVEN. CAROLINE: FREIGHT ROUNDUP. THANK YOU -- GREAT ROUNDUP.
LET'S CONTINUE THE CONVERSATION WITH ANDREW ROGERS, SENIOR PARTNER AT A GOVERNMENT AFFAIRS CONCERN FOCUSED ON CLEAN ENERGY. YOU HAVE 20 YEARS OF EXPERIENCE IN TRANSPORTATION AND INFRASTRUCTURE. HOW MUCH OF AN UPENDING IS THIS TO THE BUSINESS MODELS OF EV'S AND AUTOMAKERS MORE BROADLY? ANDREW: I DON'T THINK THE EFFECT CAN BE UNDERSTATED. THE AUTO INDUSTRY RELIES ON PREDICTABILITY, CERTAINTY, RELIABILITY. THERE IS A REASON WE FUND ROADS AND BRIDGES ON FIVE YEAR CYCLES BECAUSE THESE ARE LARGE PRODUCTS THAT TAKE PREDICTABILITY AND INVESTMENT OVER TIMES. WITH THE TARIFFS ANNOUNCED YESTERDAY YOU CAN LOOK ACROSS THE AUTOMOTIVE SECTOR AND SEE THE RIPPLE EFFECT IT IS HAVING WITH STOCK PRICES PLUNGING ACROSS MULTIPLE SECTORS, INCLUDING GETTING THE TIER ONE SUPPLIERS.
THE UNDERLYING GOAL OF THESE TARIFFS IS QUITE LAUDABLE, TO RESHORE DOMESTIC SUPPLY CHAINS, TO BUILD UP MANUFACTURING IN THE UNITED STATES. THERE ARE A LOT OF POLICIES PRESIDENT TRUMP PUT IN PLACE IS FIRST-TERM THAT CONTINUED THROUGH THE BIDEN ADMINISTRATION. THE PRACTICAL REALITY IS SOMEWHAT DIFFERENT. AUTOMAKERS EVER LIGHT IN GLOBAL SUPPLY CHAINS FOR DECADES.
THE DAYS OF MODEL T'S ROLLING UP AN ASSEMBLY LINE IN MICHIGAN ARE LONG GONE AND THEY ARE NOT COMING ON BACK. AUTOMAKERS ARE FACED WITH THREE TOUGH CHOICES. ABSORB THE COST, PASS THEM ON TO CONSUMERS, OR BEGIN A YEARS LONG HEAVILY INVESTMENT RELIANT PROCESS OF RESTORING THESE AUTOMAKERS. CAROLINE: DO THEY HAVE THE CONFIDENCE TO
TAKE THE THIRD OPTION, TO RECOMMIT AND SPEND THAT SORT OF MONEY WHEN THE TERM IS ABOUT FOUR YEARS? ANDREW: I THINK THE WORD OF THE DAY IS UNCERTAINTY. THE FACT IS THERE WAS A REASON THE EV SECTOR SAW NEARLY $300 BILLION OF INVESTMENT IN JUST THE LAST COUPLE YEARS. THEY ARE GETTING CLEAR SIGNALS FROM WASHINGTON FOR THE BIPARTISAN INFRASTRUCTURE LAW THROUGH THE INFLATION REDUCTION ACT, THROUGH THE CHIPS ACT. 70% OF THAT $300 BILLION INVESTMENT IS SPECIFICALLY ALLOCATED TO FACILITIES COMING ONLINE.
WHEN YOU HAVE WHAT SEEMS TO BE SOMEWHAT MORE REACTIONARY AND LESS TARGETED TARIFFS AND OTHER TRADE POLICIES COMING ONLINE IT IS MUCH MORE DIFFICULT TO HAVE THAT CONFIDENCE TO BEGIN RESTORING SUPPLY CHAINS AND FOR FEARS OF A WHIPSAW IN A DIFFERENT DIRECTION IN A COUPLE OF YEARS. CAROLINE: IT IS INTERESTING THAT THE MARKET IS TRADING ON THE IDEA THAT TESLA IS MORE INSULATED AND RIVIAN IS MORE INSULATED. MANY OF PUT RESEARCH OUT THAT THE AVERAGE PRICE OF THE CAR WILL GO UP $5,000 TO $8,000 BUT IT EV WILL GO UP $12,000. I'M INTERESTED HOW THE SUPPLY CHAINS ARE BEING AN ISSUE CONSIDERING IT IS SO DEPENDENT FOR MAGNETS AND RARE EARTH MINERALS FROM ABROAD? ANDREW: I WOULD MAYBE PUT TESLA IN A SLIGHTLY DIFFERENT CATEGORY. ITS STOCK HAS LONG TRADED ON PRICES UNTETHERED FROM FUNDAMENTALS. I THINK THE BROADER POINT ON THE EVE OF INDUSTRY -- IT IS DIFFERENT THAN YOUR TRADITIONAL INTERNAL COMBUSTION ENGINE MANUFACTURERS.
THE RIVIAN AND TESLA'S OF THE WORLD HAVE A LEG UP ON THE LEGACY AUTOMAKERS DEVELOPING THE SUPPLY CHAINS ONLINE. THAT INVESTMENT I JUST SPOKE TO, THAT WAS THE LEGACY AUTOMAKERS BEGINNING THAT WORK. I THINK THAT INVESTMENT WILL CONTINUE BUT IF YOU ARE TALKING ABOUT RAISING COSTS BECAUSE OF TARIFFS WHICH CAN REDUCE DEMAND AND LEAD MORE CARS ON THE LOTS, THAT CAN IMPACT JOBS AND CAUSE CONTRACTION IN THE INDUSTRY THAT CAN ULTIMATELY DIMINISH DEMAND WHICH SENDS THE ABSOLUTE WRONG SIGNAL AT A TIME WHEN THOSE INDUSTRIES ARE LOOKING TO INVEST. CAROLINE: YOU'VE BEEN THE DEPUTY FEDERAL HIGHWAY ADMINISTRATOR, YOU'VE BEEN CHIEF COUNSEL AND FEDERAL HIGHWAYS, YOU HAVE SUCH A WEALTH OF EXPERIENCE.
I'M SURE YOU ARE FIELDING PLENTY OF CALLS. WHAT IS THE NUMBER ONE QUESTION TAKEN RIGHT NOW FROM THE INDUSTRY? ANDREW: IS THIS REAL? IS THIS ACTUALLY GOING TO HAPPEN. IS THIS THE NEW REALITY. THE ANSWER IS IF YOU TAKE THE PRESIDENT AT FACE VALUE AND I'M DOING THAT MORE AND MORE IN THE SECOND ADMINISTRATION, I THINK WE NEED TO LOOK AT THE LONG-TERM AND SHORT-TERM EFFECTS OF THESE POLICIES AND PLAN FOR WHAT IS BEING STATED PUBLICLY TO TAKE ROOT IN SOME WAY. I THINK THE BOOK IS STILL BEING WRITTEN ON EXACTLY WHAT FORM THAT LOOKS LIKE. CAROLINE:
ANDREW ROGERS TRIED TO HELP US NAVIGATE THIS UNCERTAINTY. THE TRUMP ADMINISTRATION HAS ALSO JUST CUT $20 MILLION IN FUNDING THE AGENCY RESPONSIBLE FOR CHIP EXPORT CONTROLS. THAT IS 10% OF THE COMMERCE DEPARTMENT BUDGET. DEMOCRATIC SENATORS HAVE CRITICIZED THE MOVE, WARNING IT COULD UNDERMINE U.S. EFFORTS TO STAY AHEAD OF CHINA
IN THE AI RACE AND COMPROMISE NATIONAL SECURITY. COMING UP, COREWEAVE SAID TO PLAN A REDUCTION IN ITS IPO SIZE. MORE ON THAT NEXT. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: COREWEAVE INTENDS TO CUT THE SIZE OF ITS IPO TO AROUND ONE POINT $5 BILLION RAISED ACCORDING TO SOURCES. THE CLOUD COMPUTING PROVIDER
WILL INSTEAD OFFER INVESTORS $37.5 MILLION A SHARE, DOWN FROM INITIAL PLANS OF 45 MILLION SHARES. ABOUT A MONTH AGO WE WERE TALKING ABOUT A $4 BILLION RAISE IN NEW MONEY FOR COREWEAVE AND NOW WE MORE THAN HALVE THAT? I WOULD SAY THIS IS -- RYAN: THIS IS STILL A VERY FLUID SITUATION. ANYTHING COULD STILL HAPPEN. THE SOURCES WE WERE TALKING TO WERE SINGLY COMPANY WAS LOOKING AT CUTTING THE RATE DOWN TO $1.5 BILLION.
THAT WOULD TAKE THE FULLY DILUTED VALUATION BACK TO SOMEWHERE SIMILAR FOR ITS LAST PUBLIC ROUND RAMP $23 BILLION IN THE FULLY DILUTED BASIS. THAT IS QUITE THE CUT WHEN YOU'RE TALKING ABOUT WHAT WE WERE TALKING ABOUT A MONTH AGO WHEN THERE WAS MORE EXUBERANCE IN THE MARKET AROUND THIS KIND OF TRADE. THIS WAS AI, DATA CENTERS, THESE ARE THE TAILWINDS YOU WOULD BE THINKING ABOUT POSITIVELY COMING INTO AN IPO MEANT TO BE ONE OF THE BIGGEST OF THE YEAR. CAROLINE: IT IS INTERESTING THEY STOP THE IPO TRAIN AT A MOMENT NVIDIA IS DOWN FROM ITS HIGHS. ULTIMATELY THE NASDAQ 100 IS AN CORRECTION TERRITORY. NO WONDER IT WILL STRUGGLE. WILL THEY EVER THINK ABOUT CHANGING DIRECTION BECAUSE THIS SEEMS TO BE THE WRONG TIME? RYAN: BASED ON WHAT WE UNDERSTAND RIGHT NOW, AND I WANT TO EMPHASIZE IT IS STILL FLUID, BUT AS OF RIGHT NOW WE ARE NOT UNDER THE IMPRESSION THEY WILL PULL THIS.
COREWEAVE WILL TRADE AT SOME POINT AND WILL BE WATCHING TOMORROW TO SEE WHERE IT OPENS AT. RIGHT NOW ONE OF THE BIG THINGS THEY LOOK TOWARDS THIS MORNING IS NVIDIA WHO IS OBVIOUSLY A BIG CUSTOMER RELATIONSHIP OF COREWEAVE WILL COME IN WITH A SIGNIFICANT ORDER WORTH AROUND $250 MILLION AT $40 A SHARE. THAT GIVES YOU SOME KIND OF INDICATION AS TO EXACTLY THE MOMENTUM THAT IS REQUIRED TO GET A TRADE LIKE THIS OVER THE LINE. CAROLINE: IT SPEAKS TO NVIDIA'S OWN ANXIETY THIS FEEDS INTO SOME OF THE NEGATIVE HEADLINES, THE AI BUBBLE ANKLE. WE HAVE HAD ALIBABA WORN ABOUT IT.
WE HAVE HAD TD COWAN TELLING US MICROSOFT IS PULLING BACK ON DATA CENTER DEMAND. THEY ARE KEY CUSTOMER OF COREWEAVE, RIGHT? RYAN: 77% OF THE REVENUE IN COREWEAVE WAS TO CUSTOMERS. IN A WEEK WHERE TD COWAN IS SAYING THAT, IF YOU ARE COREWEAVE THAT IS NOT HELPFUL. INVESTORS WILL MAKE A VIEW AND THEY WILL BE CONSTRUCTIVE ON VALUE IN THIS INDICATION THAT WE ARE CONTINUING THE DOWNSIDE AT $40 A SHARE, THERE IS CLEARLY STRENGTH AND THEY WILL FEEL LIKE THEY CAN COME OUT AND GET THIS OVER THE LINE IN SOME SHAPE OR FORM. CAROLINE: JP MORGAN AND GOLDMAN HAVING TO EARN THEIR MONEY ON THIS ONE. THANKS SO MUCH. STICKING WITH GOING PUBLIC,
SOCIAL PLATFORM DISCORD SAID TO BE WORKING WITH THE LIKES OF GOLDMAN SACHS AND JP MORGAN ON AN IPO. THE COMPANY COULD SEEK A LISTING AS SOON AS THIS YEAR. DISCORD'S POPULARITY FORGED DURING THE PANDEMIC AND THE COMPANY REJECTED A $12 BILLION TO COVER MICROSOFT IN 2021. FLEX PORT ALSO SAYING IT IS AIMING TO GO PUBLIC DESPITE MISSING ITS PROFITABILITY TARGET IN 24. LIKE DISCORD, THE TECH FOCUSED FREIGHT COMPANIES SAW STRONG DEMAND DURING THE PANDEMIC AND SAID IT EXTENDED ITS TIMELINE TO REACH PROFITABILITY. LET'S GET ANOTHER CHECK ON AI OPTIMISM.
OPENAI IS SAID TO BE FINALIZING A WHOPPING $40 BILLION FUNDING ROUND LED BY SOFTBANK ACCORDING TO SOURCES. THE DEAL WOULD SET THE VALUE OF THE COMPANY $300 BILLION, ALMOST DOUBLE ITS VALUATION IN OCTOBER. FOR MORE BLOOMBERG'S KATE CLARK HELPS BREAK IT DOWN.
INTERESTING AN IPO WE ARE WEARING ABOUT ON THE PRIVATE MARKET, SOFTBANK AND OTHERS COMMITTING TO OPENAI AT THIS TIME. >> THERE IS STILL A LOT OF CRAZINESS ON THE PRIVATE MARKET WHEN IT COMES TO AI, STILL A LOT OF OPTIMISM. CAROLINE: AND THE OPTIMISM BEING DRIVEN BY THE LATEST RELEASE FROM OPENAI. THE IMAGE GENERATOR PROVING
THEY CAN BE SUCCESSFUL AND WE HAVE SEEN THE REVENUES ON THE UP AND UP. KATE: THEY ARE EXPECTED TO TRIPLE REVENUE THIS YEAR AND THEY HAVE WILD AND OUTLANDISH PROJECTIONS FOR THE COMING YEARS BUT THIS IS WHY INVESTORS ARE STILL VERY OPTIMISTIC AND EXCITING ABOUT FUNDING THE COMPANY DESPITE THE FACT IT HAS MASSIVE EXPENSES, INCLUDING TALENT, DATA CENTERS IN THE VERY EXPENSIVE AI CHIPS. CAROLINE: WHAT IS INTERESTING IS THE CROSSOVER OF INVESTMENT BASE. MAGNATA IS INVESTING MORE IN AI IT IS ALSO INVESTING IN COREWEAVE. THEY WILL INVEST $30 BILLION OF THE $40 BILLION? KATE: SOFTBANK IS FUNDING A VERY LARGE PORTION OF THE ROUND AND THERE ARE VERY MANY HEDGE FUNDS PARTICIPATING. THERE ARE VENTURE CAPITAL FUNDS WHICH ARE CROSSOVER FUNDS AND THEY ARE EXPECTED TO PARTICIPATE. THEN YOU HAVE SOVEREIGN WEALTH
FUNDS FROM ALL OVER THE WORLD THAT ALREADY FUNDED OPENAI AND ARE EXPECTED TO CONTINUE FUNDING OPENAI. MATT: GIVE US THE -- CAROLINE: GIVE US THE ULTIMATE VIEW THAT THEY ARE WEATHERING WHAT IS PRIVATE ANXIETY. THEY DO NOT EXPECT THEY WILL GO PUBLIC. KATE: THEY EXPECT THIS IS THE NEXT GOOGLE OR THE NEXT META.
THAT IS THE BED INVESTORS ARE MAKING. WITH SOFTBANK THE BET IS TO BECOME ONE OF THE MOST -- ONE OF THE PLAYERS IN ARTIFICIAL INTELLIGENCE. SOFTBANK WANTS TO HAVE THE FRONT ROW SEAT. THEY ARE MAKING MOVES. CAROLINE: ALWAYS MAKING MOVES. KATE CLARK, WE APPRECIATE HAVING HER.
COMING UP, THE CEO OF LUMEN ARE WILL BE JOINING US TO DISCUSS THE NEW DEAL WITH EQUIPMENT MAKER CATERPILLAR. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: TECHNOLOGY PROVIDER LUMENAR IS EXPANDING ITS -- BEYOND CARMAKERS AND HAS A NEW DEAL WITH CATERPILLAR. AUSTIN RUSSELL JOINS US. WHY MAKE THIS MOVE INTO INDUSTRIAL? AUSTIN: VERY EXCITED TO BE HERE AND THANKS FOR HAVING ME AS PART OF THIS. IT MAKES TOTAL SENSE AT THE MARKET. WE ARE HOT OFF THE HEELS OF A COUPLE MAJOR AUTOMOTIVE LAUNCHES WITH VOLVO GETTING THE PRODUCTION WITH THESE AI RELATED SYSTEMS GOING INTO THE MARKET AND WE CAN LEVERAGE THAT TOWARDS THESE INDUSTRIAL AUTOMATION MARKETS. IT IS ON THE ORDER OF $200
BILLION A YEAR INDUSTRY TODAY. THIS IS A BIG FORAY INTO IT FOR US. BEING ABLE TO HAVE CATERPILLAR AS THE LEADING PROVIDER AND MANUFACTURER OF INDUSTRIAL EQUIPMENT MORE BROADLY SELECTING LUMINAR TO MAKE THIS HAPPEN AS PART OF THEIR NEXT GENERATION PLATFORM IS SOMETHING THAT MAKES TOTAL SENSE AS WE EXPAND BEYOND THE AUTO MARKET. LEVERAGING THOSE SAME
CAPABILITIES AND PRODUCTS AS WHAT WE HAVE BEEN MAKING FOR THE AUTOMOTIVE MARKET. THERE IS A HUGE AMOUNT OF VALUE BEING CREATED. CAROLINE: THIS DOES NOT SPEAK TO A LACK OF COMMITMENT IN THE AB SPACE. YOU PUSH AHEAD AS FAR AS EVER THERE? AUSTIN: DOES THIS YEAR ALONE WE WILL BE SEEING 200% TO 300% GROWTH FOR WHATEVER LEADS TO PRODUCTION AND SHIPMENTS GLOBALLY TO THESE DIFFERENT AUTOMAKERS.
IF THAT IS SOMETHING WE ARE REALLY EXCITED ABOUT AND PUSHING FOR SPEED AHEAD ON TO GET THOSE ECONOMIES OF SCALE RAMPED UP. IN PARALLEL IT MAKES TOTAL SENSE TO CAPITALIZE ON MARKETS LIKE THIS AS AUTO CONTINUES TO RAMP UP IN ORDER TO BE ABLE TO HAVE THAT SAME MISSION AROUND SAFETY AND AUTONOMY IN A VERY HIGH VALUE-ADD WAY. THE SALES PRICES WE ARE ABLE TO GET IN THE MARKET IS A MULTIPLE FOR THE SAME PRODUCTS AND CAPABILITIES OF WHAT IT IS IN THE AUTO MARKET. CAROLINE: IS THE AVERAGE SELLING PRICE BECAUSE OF A LACK OF COMPETITION? AT THE MOMENT THE ANXIETY AROUND YOUR COMPANY HAS BEEN CHINESE COMPETITION.
WHEN IT COMES TO REPORTING THAT MERCEDES IS GOING WITH A CHINESE COMPETITOR, ARE THOSE NARRATIVES TRUE? AUSTIN: I THINK TAKING A STEP BACK, YOU CAN GIVE CHINA CREDIT FOR A LOT OF EARLY ADOPTION WHEN IT COMES TO THE CHINESE MARKET AND MARKET WHERE YOU HAVE THE ORDER OF ONE MILLION VEHICLES BEING SHIPPED WITH LIDAR AND LOCAL PROVIDERS. WHEN IT COMES TO A GLOBAL STANDARD AND THE CAPABILITIES AND TECHNOLOGY LUMINAR IS SECOND TO NONE. YOU POINTED OUT THERE WAS SOME CONFUSION OR MISREPORTING EARLIER ON SPECULATION WHEN IT COMES TO CHINESE OR THE REST OF THE WORLD. LUMINAR'S PARTNERSHIPS WITH GLOBAL AUTOMAKERS IS NOT ONLY STRONG BUT WE ARE IN THE LEADING POSITION WHEN IT COMES TO GLOBAL AUTOMAKERS MORE BROADLY. THAT IS SOMETHING WE WILL CONTINUE TO CAPITALIZE ON FOR THE BROADER WESTERN WORLD WHICH REPRESENTS ABOUT 90% OF THE VOLUME AND MAYBE MORE OF THE VALUE OF THE GLOBAL AUTOMOTIVE MARKET.
EVEN WITH MERCEDES IN PARTICULAR , THINGS HAVE BEEN CONTINUING TO MOVE FULL SPEED AHEAD SINCE THE ORIGINAL PARTNERSHIP WE HAVE HAD WITH THEM. EVEN JUST SIGNED UP OFFICIALLY TO BE ABLE TO USE HALO AS A NEXT-GENERATION PRODUCT WE ALLUDED TO AT EARNINGS. THIS IS SOMETHING WE ARE MOVING FULL SPEED AHEAD ON. HALO IS NEXT-GENERATION TECHNOLOGY BEYOND WHAT WE ARE DOING TODAY AND THAT FURTHER ALLOWS US TO STANDARDIZE THE PRODUCT ACROSS THESE MARKETS AND INDUSTRIES. CAROLINE: YOU HAVE THE MERCEDES-BENZ BUSINESS.
I AM INTERESTED TARIFFS. YOU TALKED ABOUT HOW YOU WILL BE SCALING 200% IN TERMS OF THE AMOUNT OF LIDAR YOU WILL BE PRODUCING. YOU PRODUCE IN MEXICO AS WELL. ALL THE CURRENT ADMINISTRATION BE AFFECTING THAT? AUSTIN: THERE ARE A LOT OF TARIFF CONSIDERATIONS MORE BROADLY. I WOULD SAY IN TERMS OF ALL OF THE DYNAMICS GOING ON, MEXICO IS ONE OF THOSE. THAT IS OBVIOUSLY A HOT BUTTON
TOPIC. WE HAVE A PORTION OF OUR CONTENT VALUE THAT COMES FROM MEXICO CURRENTLY. IN PARTICULAR OF THE VOLVO VEHICLES BEING PRODUCED IN SOUTH CAROLINA. WE ARE WORKING THROUGH OUR GLOBAL SUPPLY CHAIN.
ALSO WITH A TAIWANESE COMPANY. WE HAVE THE ABILITY TO BE ABLE TO SHIFT AROUND BETWEEN OUR DIFFERENT PARTNERS AT A GLOBAL SCALE AND THEN WHICHEVER WAY THE TRADE WIND BLOW WE ARE ABLE TO HAVE A TRULY GLOBAL PRESENCE THERE. THAT IS SOMETHING THAT WILL BE PART OF ANY EVOLVING PRODUCTION PLAN OVER THE COMING NEXT FEW WEEKS TO MAKE SURE THAT IS IN PLACE. WHEN IT COMES TO THE TARIFFS FOR THE VEHICLES THEMSELVES WE KNOW THEY'RE OBVIOUSLY KNEW TARIFFS INTRODUCED TODAY BUT WHEN IT COMES DOWN TO IT, THERE VAST MAJORITY OF ALL OF THE PRODUCTION WE HAVE IS GOING TO U.S. VEHICLES SO THAT IS NOT EFFECTED BY THIS. CAROLINE: CAROLINE: UP ABOUT .1% ON THE NASDAQ 100 TRYING TO DIGEST THE LATEST TARIFF NEWS FROM THE WHITE HOUSE AND WHAT IT THE AUTO SECTOR AND OTHER FACTORS AS WE ANTICIPATE THE BEGINNING OF APRIL AND MORE RETALIATORY RIPPLES POP -- TARIFFS AT THE HIGHER.
ON THE DOWNSIDE, CHIP NAMES. NVIDIA OFF BY A QUARTER OF A PERCENT. WE ARE SEEING ANXIETY ABOUT WHAT THE AUTO SECTOR MEANS FOR THE SEMICONDUCTOR SECTOR AND WHAT SORT OF TARIFFS WE COULD SEE THERE. AMD SAYING IT'S NOT MANAGING TO
COMPETE AGAINST NVIDIA OFF BY 3%. GAMESTOP OFF BY 14% HAVING ITS WORST DAY SINCE SEPTEMBER OF LAST YEAR. YESTERDAY NEWS THEY ARE LOOKING TO PUT IT ON THEIR BALANCE SHEET WAS A HIGHER SIDE PUSH. TODAY A DRAG WITH THE LIKES OF WHAT BUSH STEIN THIS WILL FALL FLAT AS AN OFFERING. LET'S GET A BROADER PERSPECTIVE
ON THE MARKETS. ON EARTH DO YOU TRADE THEM? MARK REYNOLDS IS THE VICE PRESIDENT OF INVESTMENT STRATEGY AT LYNN MEAD. YOU HAVE TO BE ABLE TO TAKE A LONG-TERM PERSPECTIVE. ARE INVESTORS WILLING TO GET
INTO THE MARKET WHEN THERE IS SUCH NOISE COMING FROM THE ADMINISTRATION? MARK: THERE HAS BEEN CONSIDERABLE UNCERTAINTY AROUND TRADE POLICY, NOT JUST THE DETAILS OF THE POLICY ITSELF, BUT THE FACT IT COULD GO IN ANY DIRECTION AT ANY POINT. AND I ARE MARKET LIKE THIS WE ARE WATCHING SENTIMENT INDICATORS CLOSELY TO GET ASIDE IF WE HAVE SEEN TRUE CAPITULATION MOMENTS WHERE WE HAVE SEEN INDISCRIMINATE SELLING THAT WE HAVE FOUND ARE OFTEN GREAT OPPORTUNITIES TO STEP IN ON A CONTRARIAN BASIS. WE HAVE SEEN A LITTLE BIT OF THIS, JUST NOT ON A GRAND SCALE. SOME INVESTOR SURVEYS ARE TELLING YOU INVESTORS ARE GETTING VERY BEARISH, A GOOD CONTRARIAN INDICATOR. OTHER THAN THAT, WE AREN'T RELEASING THE WASHOUT MOMENT THAT MAKES A LOT OF SENSE TO MATERIALLY LEG INTO THE MARKET BUT WE ARE RECOMMENDING THAT INVESTORS ACTIVELY REBALANCE IN AN ENVIRONMENT LIKE THIS. ESPECIALLY IF YOU CAME TO THE
YEAR WITH A RELATIVELY BALANCED PORTFOLIO SINCE MAY LOOK OUT OF BALANCE. IT'S GOOD TO GET BACK TO POLICY. CAROLINE: WHERE THE REBALANCING FLOWS DIRECTLY IN? ARE PEOPLE LIKELY TO GO MORE INTO TECH OR CUT OFF MORE? MARK: IT HAS BEEN TECHNOLOGY THAT BORE THE BRUNT OF THE DOWNDRAFT. IF YOU HAD A DIVERSIFIED PORTFOLIO WITH TECHNOLOGY AND PORTFOLIO THOSE THINGS ARE DOWN THE MOST OVERALL. VALUATIONS AT THE 94TH PERCENTILE TO START THE YEAR, NOW THE 75TH PERCENTILE. IT'S A HUGE DIFFERENTIAL.
WE AREN'T SEEING MUCH OF THE MARKET BEYOND THE GROWTH SIDE CORRECTING MUCH. INVESTORS ARE TAKING ANOTHER LOOK AT THE TECH SIDE WHERE THINGS WORK, PERHAPS -- WHERE, PERHAPS, LOOKING EXPENSIVE NOT TOO LONG AGO AND NOW THERE ARE OPPORTUNITIES AMID THE DOWNDRAFT. CAROLINE: WILL THEY ENTER SLOWLY AND RESOLUTELY OR IS THERE ANOTHER CATALYST FROM A CERTAIN COMPANY THAT WILL HELP YOU MAKE A TRADE OR A CIRCUIT CATALYST FOR A NUMBER FROM AN ECONOMIC PERSPECTIVE THAT WILL GET PEOPLE BACK IN? IT IS INTERESTING. MONDAY WENT TO THE HIGHER SIDE. MANY ARE TRYING TO WONDER WHY THAT HAPPENED. MARK: INVESTORS HAVE TO BE CAREFUL TO CATCH A FALLING KNIFE HERE. BACK IN THE TECH BUBBLE IF YOU GOT TOO EXCITED ABOUT TECH STOCKS AT A 15% DRAWDOWN YOU WOULD HAVE GOTTEN YOUR FACE RIPPED OFF. FURTHER DECLINES WOULD HAVE
REALLY BEEN PAINFUL. IT IS IMPORTANT TO MONITOR THIS INTIMATE SIDE AND ALSO WE THINK THAT TRADE UNCERTAINTY INDIRECTLY HAS AN IMPACT FOR TECHNOLOGY. IN PARTICULAR A LOT OF OUR TARIFFS HAVE FOCUSED ON THE CASH COW OF COUNTRIES ABROAD LIKE AUTOMOTIVE'S SO FAR. IF THEY RETALIATION MAY BE THEY GO AFTER OUR CASH COW, THE TECH SIDE. UNTIL WE GET MORE CLARITY ON TARIFFS IT IS HARD TO GET EXCITED ABOUT LIKING INTO TECH TO A MATERIAL DEGREE.
EVERYBODY IS PENCILING IN APRIL 2 AS TJ OR RISK -- T DAY OR TARIFF DAY. CAROLINE: WE GET EARNINGS FROM COMPANIES NEXT SEASON. WILL YOU SEE CEOS LEAN INTO THAT ANXIETY? THEY WILL DOWNGRADE THE EXPECTATIONS, REALLY TRYING TO MAKE SURE PEOPLE RECALIBRATED WHERE COMPANY GROWTH WILL GO JUST SO THEY CAN LOCK IN SOME OF THE ANXIETY. WILL WE HAVE A HORRIBLE SET OF EARNINGS COMING? MARK: WE AREN'T EXPECTING TO SEE MATERIAL EFFECT GET FROM TARIFFS OR THE UNCERTAINTY WHERE IT COMES TO EARNINGS. BUT YOU CAN SEE A LOT OF GUIDANCE AROUND THAT.
PARTICULARLY, UNCERTAINTY IN OF ITSELF CAN BE AN ECONOMIC HEADWINDS IF CEOS ARE PERHAPS GOING TO PULL BACK ON OR HIRING PLANS BECAUSE THEY DON'T -- KNOW THE RULES OF THE GAME THAT IS A HEADWIND. YOU MIGHT SEE CEOS TALK THROUGH THAT ON THEIR EARNINGS CALLS AND HOW THEY ARE SEEING IT PLAY OUT. IT IS PROBABLY TOO EARLY TO SEE A DIRECT IMPACT ON EARNINGS THEMSELVES IN Q2 OR Q1 OVER THE NEXT MONTH OR SO. WATCHING THOSE TRENDS VERY
CLOSELY FOR HOW THEY ARE GUARDING THE REST OF THE YEAR COULD BE REALLY ALUMINATE. CAROLINE: I WOULD JUST BRINGING UP GAMESTOP AND CONVERTIBLE NOTES. TAKES ME TO BASICALLY THE WATERFRONT EFFECT OF ASSETS YOU CAN OWN AROUND THIS. WE OBVIOUSLY LEAN INTO EQUITIES.
WHEN YOU ARE MANAGING $47 BILLION, I AM SURE YOU ARE COMPLETELY CROSS ASSET. HOW MANY ARE YOU LOOKING TO GET INTO THE CORPORATE DEBT SIDE OF THE TECH COMPANIES RATHER THAN THE EQUITY SIDE? MARK: WE TAKE A DIVERSIFIED APPROACH WHEN IT COMES TO BONDS OR TRY TO AVOID SOME FINANCIAL ENGINEERING STUFF THAT HAPPENS ON THE BLEEDING EDGE OF FINANCIAL MARKETS. WITH SOME STUFF, GAMESTOP FEELS LIKE THAT. WHEN YOU ARE BUILDING BALANCE IN YOUR PORTFOLIO YOU TYPICALLY WANT A GOOD, HEALTHY SIZE OF TREASURIES IN THAT PORTFOLIO BUT YOU CAN GET INCREMENTAL RETURNS THROUGH GETTING CORPORATE CREDIT AND BEING SMART ABOUT IT NOT EXTENDING TOO MUCH ON RISK IN YOUR BOND PORTFOLIO. SOME, PLATELET ENDS UP BEING THE BEST THING TO GET -- PLAIN VANILLA ENDS UP BEING THE BEST THING. CAROLINE: MEANWHILE, A BREAKTHROUGH IN QUANTUM COMPUTING. IN A WORLD FIRST, JP MORGAN
SAID IT GENERATED TRULY RANDOM NUMBERS USING THE TECHNOLOGY. SO RANDOM NUMBER GENERATORS COULD HAVE APPLICATIONS FOR TRADING, CRYPTOCURRENCY, AND SECURITY. JP MORGAN USED A QUANTUM COMPUTER BUILT BY HONEYWELL'S QUANTINIUM. MORE ON CRYPTO. THE MARKETS ARE SET TO GAIN REGULATORY CLARITY UNDER THEIR NEW TRUMP ADMINISTRATION. WE SPEAK WITH AUGUST CEO AYA KANTOROVICH. THIS IS BLOOMBERG TECHNOLOGY.
STICK AROUND FOR A CONVERSATION WITH ROBINHOOD CEO VLAD TENEV AT 12:00 P.M. EASTERN. THIS IS BLOOMBERG. PRESIDENT TRUMP'S SEC PICK SAYS HE HOPES TO CREATE A RATIONAL CRYPTO REGULATION. HE IS UNDERGOING HIS NOMINATION HEARING AS WE SPEAK. YOU CAN GO TO LIVE GO TO SEE ALL THIS.
BUT, DEMOCRATIC SENATOR ELIZABETH WARREN OF MASSACHUSETTS WARNED HIS PAST ACTIONS COULD INDICATE A LOOSER REGULATORY ENVIRONMENT. SHE SAT DOWN WITH BLOOMBERG'S DAVID GURA TO TAKE A LISTEN. >> I THINK THIS IS ENTIRELY IN KEEPING WITH WHAT DONALD TRUMP AND ELON MUSK WANT TO SEE US DO, LISTEN -- LOOSEN REGULATIONS. THAT IS WHAT PAUL ATKINS DID. HE ALSO SAID, REPEATEDLY, NO, REGULATIONS JUST GET IN THE WAY. EVERYBODY NEEDS TO DO WHATEVER THEY WANT, THERE'S BIG WALL STREET GIANTS, WE SAW THE CRASH IN 2008 AND HERE IS WHAT HAPPENS NEXT. AFTER THE CRASH HE HAS THE CHANCE TO HAVE 2020 HINDSIGHT? HE LOOKS BACK AND SAYS, NO PROBLEM. HAVING LET THOSE GIANT WALL
STREET BANKS RUN WILD. THE FACT OF THE AMERICAN TAXPAYER HAD TO BAIL HIM OUT IS NOT A PROBLEM. THAT'S MY CONCERN. IF SOMEBODY HAS DEMONSTRATED SUCH POOR JUDGMENT, YOU HAVE TO BE REALLY WORRIED ABOUT PUTTING THEM IN A JOB WHERE THE FAILURE TO HAVE GOOD JUDGMENT COULD BE LIKE IT WAS BACK THEN. REMEMBER. 10 MILLION FAMILIES LOST THEIR HOMES. MILLIONS MORE PEOPLE LOST THEIR JOBS. WE WATCHED WALL STREET TANK.
HERE'S THE THING ABOUT PAUL ATKINS. WE HAVE BOTH HIS DEMONSTRATED EXPERIENCE, BUT ALSO, LOOK AT HIS EXPERIENCE OVERALL. HIS TIME IN GOVERNMENT IS A REAL PROBLEM. NOW HE IS SOMEONE THAT HAS
BUILT A VERY LUCRATIVE BUSINESS WITH POTOMAC PARTNERS. HE EVIDENTLY CHARGES UPWARDS OF $1200 AN HOUR TO GIVE ADVICE. HE SAYS I WILL DIVEST THIS INTEREST. BUT HE DOES NOT WANT TO TELL US WHO HE IS DIVEST INTO. WHO'S BUYING IT? AND FOR WHAT PURPOSES? AND WHAT ARE THE LONG-TERM PLANS? HERE'S THE DEAL. SEC CHAIRMANSHIP DOES NOT LAST FOREVER. TWO YEARS, FOUR YEARS, MAYBE
LONGER. MY CONCERN IS, WHAT HAPPENS ON THE OTHER END? DOES HE COME RIGHT BACK OUT AND, INSTEAD OF CHARGING $1200 AN HOUR IT NOW IT IS 2400 DOLLARS AN HOUR? WHO DO YOU WORK FOR? AND WHY THAT MATTERS IS IT HAS IN FACT ON THE - TIME YOU SET AS CHAIRMAN OF THE SEC. CAROLINE: LET'S GET MORE CONTEXT OF THE CRYPTO REGULATORY ENVIRONMENT UNDER THE NEW TRUMP ADMINISTRATION JOINED BY AUGUST COFOUNDER AND CEO WHO OFFERS A PLATFORM TO MANAGE AND TRADE DIGITAL ASSETS SECURELY. THE LOOSER PERSPECTIVE. TOO LOOSE? OR ARE YOU THINKING WE ARE GETTING A BALANCE HERE THAT WILL HELP SERVE YOUR GROWTH AND ALSO SERVE SECURITY AND PROTECTION OF CONSUMERS? AYA: I THINK VERY COMMONLY PEOPLE MISUNDERSTAND WERE PAUL ATKINS IS COMING FROM ASSUMING WE WILL GO FROM THE GARY GENSLER REGULATION BY ENFORCEMENT TO COME ALL OF A SUDDEN, NO REGULATION AT ALL. PAUL ATKINS IS VERY VERY STRICT ABOUT NO MARKET MANIPULATION AND NO FRAUD.
WE WILL SAY -- CK YC, KY B, AML REQUIREMENTS BROADLY ACROSS THE CRYPTO INDUSTRY AND ALSO CLEAR REGULATION. WHEN YOU LOOK AT WHAT SENATOR WARREN IS SAYING, BEFORE WE SAW ALL THE AMERICAN COMPANIES GET PUSHED OFF SHORE. NOW WE ARE SEEING AN OPPORTUNITY TO ENSURE THE COMPANIES, MAKE THEM FOUNDED IN THE UNITED STATES AND THAT IS A REALLY BIG SHIFT AND A BIG DIFFERENCE AND YOU CAN DO THAT SOMEWHERE IN THE MIDDLE. CAROLINE:
I SUPPOSE SHE WAS ALSO TRYING TO SPEAK TO THE WAY HE HAS MANAGED TO MAKE IT CLEAR HE HAS NO SKIN IN THE GAME, NO EXPOSURE. HE IS SELLING HIS ASSETS. ARE THOSE IN A POSITION OF POWER UNDER THE ADMINISTRATION AND VARIOUS AGENCIES DOING ENOUGH OF THAT, SIGNALING ENOUGH OF THAT THAT THERE IS TRANSPARENCY WHEN IT COMES TO CRYPTO HOLDINGS AND THEY AREN'T MANAGING TO BENEFIT THEMSELVES? AYA: GREAT QUESTION. THE SAME QUESTION WAS ASKED ABOUT DAVID SACHS WHEN HE DIVESTED ROUGHLY $200 BILLION AT A LOSS. HE DISCLOSED EXACTLY WHAT THE POSITIONS ARE. ATKINS HAS TWO EQUITY POSITIONS SECURITIZED IN ANCHORAGE AND ONE IN FUND CALLED OFF THE CHAIN CAPITAL. HE HAS DIVESTED THOSE IF HE IS APPROVED THURSDAY OF THIS WEEK.
WE ARE GETTING THE TRANSPARENCY WE NEED. THE BIGGER QUESTION IS, DO WE WANT PROFESSIONAL REGULATORS THAT HAVE NOT BEEN IN THE SPACE OR HAVE THE DIALOGUE RUNNING THE REGULATION FOR US OR DO WE WANT PEOPLE WHO HAVE ACTUALLY BEEN IN THE TRENCHES THAT HAVE HAD THE CONVERSATIONS HAD DEALT WITH THE PROBLEMS DIRECTLY TO BE RUNNING AND MAKING THE DECISIONS ON OUR BEHALF? CAROLINE: THEREFORE IT YOU WANT SOMEBODY IN THE JOB WHO UNDERSTANDS THE ASSET CLASS AND THEN MAKES APPROPRIATE REGULATORY CHANGES. ARE YOU GETTING THE TRANSPARENCY YOU NEED THERE? WE ARE ALREADY SEEING THE FOCUS ON STABLECOINS, IT FEELS LIKE, AND UNWINDING THE LATEST THINGS DONE BY THE BIDEN ADMINISTRATION. AYA: DO YOU REPORT THE IRS BROKER DEALER RULE WAS JUST VOTED ON BY THE SENATE AND IS GOING TO PRESIDENT TRUMP. 11 THE NEED FOR DECENTRALIZED EXCHANGES TO FILE A 1099 FOR EVERY USER ON THE PLATFORM. IT WAS NOT APPLICABLE TO THE WAY PERMISSION LIST PLATFORMS EXIST TODAY.
WHAT WE HAVE HEARD FROM COLLEAGUES IN D.C. EVERY DAY IS EVERY DAY ACTION IS BEING HAPPENED. WE HAVE FIT 21 CURRENTLY GOING THROUGH CONGRESS THAT HAS A STABLE CORE AND REGULATORY OVERSIGHT AND GUIDELINES. WYOMING ANNOUNCED THIS WEEK THEY WILL LAUNCH A STABLECOIN. WE ARE SEEING A LOT MORE PROGRESS IN THE LAST FOUR MONTHS THAN THE LAST FOUR YEARS COMBINED. IT IS VERY EXCITING FOR ANY AMERICAN COMPANY OR ANYBODY SITTING IN AMERICA BUILDING THEIR COMPANY TODAY. CAROLINE:
WE HAVE MORE EXTERIOR COMING FROM PAUL ATKINS AS HE UNDERGOES OVERSIGHT AT THE SENATE. LET'S LISTEN TO WHAT HE HAS BEEN SAYING? PAUL: UNCLEAR, BURDENSOME REGULATIONS ARE STIFLING CAPITAL FORMATION WHILE AMERICAN INVESTORS ARE FLOODED WITH DISCLOSURES THAT DO THE OPPOSITE OF HELPING THEM UNDERSTAND THE TRUE RISKS OF INVESTMENT. IT'S TIME TO RESEARCH PRIORITIES AND RETURN COMMON SENSE TO THE SEC. CAROLINE: A RETURN TO COMMON SENSE AT THE CENTER NOMINATION HEARING COMING FROM PAUL ATKINS. WHAT NEXT FOR COMMON SENSE? YOU HAVE ALREADY SAID WHAT IS UNDERWAY WITH STABLECOINS.
WHAT ARE YOU LACKING IN YOUR PART OF THE BUSINESS TO GET MORE INSTITUTIONAL INVESTORS ACTIVE IN THE CRYPTO SPACE? AYA: THERE ARE A COUPLE BUCKETS. THE U.S. HAS BEEN LOSING IN THE GEOGRAPHIC REGULATORY SPACE. UNDER THE U.S. WE DON'T HAVE ANYTHING. IT IS NOT JUST ABOUT ON SHORING AMERICAN COMPANIES THAT WENT OFFSHORE, IT IS HOW CAN WE COMPUTE SO WE GET COMPANIES FROM EUROPE TO COME TO THE U.S.
AS WELL AND BUILD HERE? THE OTHER THING TOO IS HOW DO WE TREAT CLIENTS? HOW DO WE STRUCTURE OUR ENTITIES? A LARGE PART THAT HAS NOT BEEN DISCUSSED FOR A COMPANY SPECIFICALLY IS ALL TOKEN FOUNDATIONS ARE UNDER EVIS OR THE CAYMANS. A BIG DISCRETION IS -- DISCUSSION IS HOW DO WE BRING THAT TO THE U.S.? CAROLINE: WE WANT TOKEN FOUNDATIONS LAUNCHING IN THE U.S.. TO REITERATE THE POSITIVE NATURE FOR INVESTORS WATCHING THIS. AYA: WE ARE LOOKING FOR TRANSPARENCY. WE WANT TO SEE HOW THE
COMPANIES OPERATE. WE WANT TO BE ABLE TO GO THROUGH TAX FILINGS IF WE NEED TO AND AUDIT THEM. IT GIVES THE TRANSPARENCY EVERYBODY IS ASKING FOR BUT TO DO THAT YOU HAVE TO ON FOR THE COMPANY FIRST AND TO DO THAT YOU NEED CLEAR REGULATION. WE ARE SEEING A PATH FORWARD WITH ATKINS. IT WILL BE EXCITING TO MAKE NEW YORK, UNITED STATES, THE CRYPTO CAPITAL. WE ARE FOR FINANCE. IT SHOULD BE FOR CRYPTO AND THIS IS ONE STEP IN THAT DIRECTION. CAROLINE: THANK YOU COMMIT AUGUST CO-CEO
THERE. COMING UP, PRESIDENT TRUMP SAYS HE'S OPEN TO LOWERING WORK. ON CHINA IF BEIJING SUPPORTS THE SALE OF BYTEDANCE U.S. OPERATIONS.
WE HAVE MORE ON THE POSSIBLE TIKTOK SALE NEXT ON BLOOMBERG TECHNOLOGY. CAROLINE: THE FOUNDER OF TIKTOK'S OWNER BYTEDANCE HAS BECOME CHINA'S WEALTHIEST PERSON FOR THE FIRST TIME. HE TOPPED THE LIST WEDNESDAY SURPASSING THE TENCENT COFOUNDER AMONG OTHERS WITH A $57.5 BILLION FORTUNE. HIS WEALTH JUMPED BY MORE THAN $10 BILLION AFTER BLOOMBERG ANALYZED THE VALUE OF INVESTORS. AND AT THE COMPANY'S PLANS TO BUY BACK EMPLOYEES STOCK AT A VALUE OF $312 BILLION. ALL THIS COMES AS THE FATE OF TIKTOK IN THE U.S. REMAINS UNCLEAR.
PRESIDENT TRUMP SAID HE WOULD CONSIDER LOWERING TARIFF RATES IMPOSED ON CHINA TO SECURE BEIJING'S SUPPORT FOR THE SALE OF TIKTOK'S U.S. OPERATIONS TO AN AMERICAN COMPANY. BLOOMBERG'S STEPHANIE JOINS US FOR MORE. HE IS USING TIKTOK IN THE BROADER DEBATE WHEN IT COMES TO TRADE. STEPHANIE: IT'S AN INTERESTING TIME. WE ARE LOOKING AT NEXT WEEK AND
BEING VERY BIG FOR TARIFFS AND TIKTOK. APRIL 2 IS THE DAY WHEN DONALD TRUMP SAID HE WILL PLACE MOST OF HIS RECIPROCAL TARIFFS AND OF COURSE THE DEADLINE TO FIND A DEAL TO SO TIKTOK'S APRIL 5 BEFORE -- SELL TIKTOK'S APRIL 5 BEFORE IT FACES THE SHUTDOWN. PRESIDENT TRUMP HAS FLOATED POTENTIAL REPLY FROM CHINA IF THEY AGREE TO A DEAL. SOME OF THE COMPLICATIONS BEHIND THIS INCLUDE THE EVENT OF THE TRAINEES -- CHINESE GOVERNMENT AND BYTEDANCE ARE PUSHING TO KEEP THE ALGORITHM WITHIN CHINESE HANDS BUT IT IS SOMETHING MANY LAWMAKERS SAY WOULD NOT COMPLY WITH U.S. LAW.
IT SEEMS LIKE THERE IS AN IMPASSE IN WHAT TRUMP FLOATED JUST YESTERDAY. SEEMS TO BE ONE OF THE WAYS IN WHICH HE IS TRYING TO WORK AROUND THAT. CAROLINE: YET, THE ALGORITHM IN CHINESE HANDS SEEMS TO BE ONE OF THE POTENTIAL DEALS DEBATED BY THE WHITE HOUSE. IT LOOKS AS THOUGH THERE WAS AN ONGOING NARRATIVE THAT ORACLE FOUNDER LARRY ELLISON MAYBE HE COULD BE COMPARED -- PERSUADED TO TAKE A PIECE OF TIKTOK, THE U.S.
ENTITY, AND REMAIN A SECURITY GUARD AUDIT ULTIMATELY. AND ALSO, ALLOW THE ALGORITHM TO STAY IN CHINA. STEPHANIE: CERTAINLY. THAT IS ONE OF THE DEALS THAT HAS BEEN FLOATED. WE HAVE BEEN TOLD BY SOURCES FAMILIAR THERE IS A DEAL THAT HAS BEEN PROPOSED THAT WOULD ALLOW ORACLE TO HAVE A MINORITY STAKE AND CONTINUED STORING U.S.
DATA AS IT ALREADY HAS AND THE OTHER ASPECT OF THE DEAL IS TO ALLOW CHINA TO KEEP THE ALGORITHM. NOW, THIS HAS CAUSED SOME PUSHBACK AMONG REPUBLICAN LAWMAKERS TO SAY THIS DOES NOT COMPLY WITH THE LAW. IT IS NOT ACTUALLY CLEAR WHERE THE DEAL LANDS AND WHETHER OR NOT THE ADMINISTRATION WOULD BE OK TAKING THE DEAL AT ITS FACE OR GOING THROUGH CHINA AND ASKING TO NEGOTIATE WITH WHAT WE HAVE BEEN CURRENTLY SHOWN. CAROLINE: THERE ARE OTHER PUBLIC BIDDERS OUT THERE.
ONE IS FRANK MCCOURT JUNIOR AND ALEXIS OHANIAN AND WE KNOW THERE DID DOES NOT INVOLVE THE ALGORITHM AND THEY WANT A NEW FOCUS ON SOCIAL MEDIA IN THE UNITED STATES BUT IN MANY WAYS THE VALUE IS IN THE ALGORITHM. AND THE VALUE IS TO BE DETERMINED IN SOME WAYS BY BYTEDANCE ITSELF AND ALSO THE CHINESE GOVERNMENT. OR DO WE HAVE ANY INDICATION OF WHETHER THEY ARE WILLING TO GO THROUGH WITH SOME SORT OF DEAL? STEPHANIE: SOURCES HAVE TOLD US SO FAR THAT CHINA WANTS TO KEEP THE ALGORITHM AND STOP. THAT IT WOULD ESSENTIALLY BE A NONSTARTER TO FACILITATE A DEAL THAT IS NOT INCLUDED THE ALGORITHM REMAINING IN THEIR HANDS. THAT SEEMS TO BE A PROBLEM GIVEN THE LETTER OF THE LAW. SO TRUMP'S PROPOSAL TO LESSEN THE TARIFFS ON CHINA SEEMS TO BE A WAY HE IS TRYING TO GET EVERYBODY TO THE TABLE AND SAY, WE HAVE TO MAKE A DEAL AND WE NEED TO WORK PAST THIS IN THE NEGOTIATION. CAROLINE:
A STORY THAT WILL CONTINUE TO EVOLVE OVER THE NEXT WEEK. BLOOMBERG'S STEPHANIE LAI THANK YOU FOR BREAKING IT DOWN. DON'T FORGET ABOUT OUR PODCAST ON THE TERMINAL AND ON APPLE, SPOTIFY, AND I HEART. THIS IS BLOOMBERG TECHNOLOGY.
2025-03-28 19:23
