Tesla's Disappointing Sales | Bloomberg Technology
>> THIS IS BLOOMBERG TECHNOLOGY WITH CAROLINE HYDE AND ED LUDLOW. TIM: I'M TIM STENOVEC. KATIE: I'M KATIE GREIFELD. THIS IS BLOOMBERG TECHNOLOGY. TIM: TESLA SALES DROP FOR THE FIRST TIME IN OVER A DECADE. KATIE: THE COMPANY ALSO IN FOCUS FOLLOWING A CYBER TRUCK EXPLOSION OUTSIDE THE TRUMP LAS VEGAS HOTEL YESTERDAY. WE WILL HAVE THE LATEST. TIM: TIKTOK FEELING THE HEAT AS A
POTENTIAL BAN DRAWS NEAR. WE WILL DISCUSS A LITTLE LATER THIS HOUR. FIRST, WE WILL CHECK THE MARKETS. I DON'T KNOW ABOUT YOU BUT I'M STILL WRITING 2024 ON ALL MY CHECKS. KATIE: THAT IS TERRIBLE. I THINK WE CAN SAFELY STILL SAY HAPPY NEW YEAR. I THINK A LOT OF INVESTORS ARE HAPPY WE. TIM:
I THINK THEY ARE, ALTHOUGH THE NASDAQ HAD GREAT YEARS BACK TO BACK IN 2024 AND 2023. UP TODAY BY 0.3%. WE HAVE ABOUT 70% OF THE STOCKS HIGHER TODAY. FIVE OF THE SEVEN BIG SEVEN OR HIGHER WITH ONLY TESLA LOWER. YOU WILL HAVE SOMETHING ON TESLA IN JUST A MINUTE. I MENTIONED BACK-TO-BACK TO BACK YEARS OF GAINS. WENDY TONY FOR -- THE NASDAQ 100 WAS UP NEARLY 25%.
2023, UP BY MORE THAN 50%. SPEAKING OF BACK-TO-BACK TO BACK YEARS OF GAINS, IT GOING HIGHER TODAY FOR A THIRD DAY IN A ROW. 1.7% TO THE UPSIDE, UP TO ABOUT $1600. IT DID FALL ABOUT 3% IN DECEMBER. OF MORE THAN 150% FROM 2023. KATIE:
YOU MENTIONED SOME OF THOSE YEARLY STATS FROM THE NASDAQ 100. THAT IS EVEN WITH THE AND -- THE BIG BENCHMARKS AT THE END. EVEN WITH TESLA DOING ITS DARNDEST TO TRY TO DRAG THIS INDEX DOWN. SHARES DOWN ABOUT 5.6%. OF COURSE, WE GOT THERE
FOURTH-QUARTER DELIVERIES THIS MORNING COMING IN AT 400 AND 5000 VEHICLES. THAT -- 495,000 VEHICLES. THAT MISSED ANALYST ESTIMATES. YOU CAN SEE THE DISAPPOINTMENT IN THE SHARES RIGHT NOW. TESLA ALSO HAD A FANTASTIC YEAR IN 2024, BUT IT CAME WITH A TON OF VOLATILITY AND A LOT OF POLITICAL CROSSCURRENTS. TIM: THAT IS SOMETHING WE WILL BE TALKING ABOUT IN A FEW MINUTES. HOW ABOUT THE LAST FEW MONTHS OF 2020 FOUR FOR TESLA? REMARKABLE. KATIE:
ELON MUSK, SOME HAVE BEEN CALLING HIM THE COPRESIDENT. PRESIDENT-ELECT DONALD TRUMP DOES NOT LOVE THAT. DONALD TRUMP DOMINATED THE YEAR AHEAD OUTLOOKS. LET'S TALK MORE ABOUT THAT BECAUSE WALL STREET HAS ITS EYES LASER FOCUSED ON TRUMP'S RETURN TO THE WHITE HOUSE AND TRYING TO GAUGE WHAT TO EXPECT THIS YEAR FROM HIS ANTICIPATED PRO-BUSINESS POLICIES, BUT ALSO TOUGH TALK ON GLOBAL TRADE AND THEN ROLL UNPREDICTABLE IT. BLOOMBERG NEWS HAS COLLATED OVER 700 KEY CALLS FOR MORE THAN 50 MILLION FINANCIAL INSTITUTIONS. DENISE IS HERE TO BREAK IT DOWN, THE SUBJECT OF TODAY'S BIG TAKE.
IT IS GREAT TO HAVE YOU WITH US. I MADE THIS POINT ON OPEN INTEREST. I WILL MAKE IT AGAIN. IT IS HARD TO TALK ABOUT 2025 WITHOUT TALKING ABOUT DONALD TRUMP.
>> IT IS CLEARLY THE BIGGEST WORD THIS YEAR -- DONALD TRUMP, TARIFFS, AMERICAN EXCEPTIONALISM. THESE ARE THE WORDS WE SAW THROUGH ALL THOSE OUTLOOKS. LAST YEAR, WE WERE TALKING ABOUT HARD LANDINGS. MONETARY POLICY IS AN IMPORTANT FACTOR HERE, BUT DEFINITELY DONALD TRUMP HAS TAKEN CENTER STAGE.
WHAT WE HAVE SEEN IS A LOT OF PEOPLE BETTING ON AMERICA COMPANIES. DESPITE THE FACT THAT THEY OBVIOUSLY ARE A LOT CHEAPER. BUT U.S. ASSETS ARE TAKING CENTER STAGE.
AP MORGAN SAYS U.S. EXCEPTIONALISM IS GETTING REINFORCED. WE ARE TALKING ABOUT AI. AI'S ROLE IN THE WORLD WILL SURPASS THAT OF OTHER TECHNOLOGIES THAT PROPEL EARLIER PROPOS -- EARLIER PERIODS OF SUCH GROWTH. WE ARE SEEING AI OPTIMISM WITH A CAUTIOUS PAUSE OF THE RALLY, PEOPLE SAYING THAT MORE AND MORE COMPANIES WILL USE AI, HENCE THEY WILL JOIN THE AI EUPHORIC RALLY. TIM:
IT IS A GREAT PIECE WITH MANY FOLKS ON THE BLOOMBERG NEWS TEAM. LET'S BRING IN KEITH BUCHANAN. IT IS ABOUT $3 BILLION IN ASSETS UNDER MANAGEMENT. HERBIE MENTIONED BACK TO BACK YEARS OF GAINS ON THE NASDAQ 100. REMARKABLE COUPLE OF YEARS.
DO YOU THINK THERE IS STILL ROOM TO RUN FOR MEGA CAP TECH? >> THANKS FOR HAVING ME. WE HAVE BEEN MOVING AND DOING A MORE BALANCED STANCE OVER THE LAST COUPLE OF MONTHS. WE ARE REALLY FOCUSED ON THE VALUE COLLISION COURSE SET UP FOR 2025. ONE OF THE MOST CURIOUS COLLISION COURSES ACROSS OUR ECONOMY AND MARKETS.
WE MOVED INTO A MORE BALANCED STANCE. WE LOOK AT GROWTH AS DOMINANT ON THE MARKETPLACE. WE HAD THIS MOST RECENTLY IN 2022. AI SPENDING IS A STORY. BUT AT WHAT COST IS THAT COMING? ARE WE LOOKING AT VALUATION THAT GROWS INTO INFINITY? AT WHAT POINT DOES THAT PRICE INTO THE SCENARIO WE ARE IN NOW? ALSO, WHAT IS TO COME OVER THE NEXT COUPLE OF YEARS? AND WHAT COST DOES THIS AI SPENDING COME? THAT IS A BOON TO EARNINGS.
DOES IT COME WITH WAGE GAINS THAT COULD CAUSE MORE CONSTERNATION ON THE CONSUMER AND CONSUMER SPENDING? THAT LET US TO A MORE BALANCED APPROACH AND HOW WE LOOK AT U.S. MARKETS, NOT PERFORMING GROWTH OVERVALUE ANY LONGER. KATIE: WHEN IT COMES TO BIG TECH AND THE MAGNIFICENT SEVEN, A LOT OF PEOPLE WOULD AGREE WITH YOU ON THESE STRETCHED VALUATIONS. THE PUSHBACK I KEEP HEARING IS THAT YOU HAVE THE EARNINGS GROWTH TO BACK IT UP.
A SICKLY, THE FUNDAMENTALS ARE VALUING THESE I WONDERING VALUATIONS. IF YOU EXPECT TO SEE MOMENTUM BEHIND BIG TECH FADE, WOULD YOU EXPECT EARNINGS TO DISAPPOINT A BIT IN 2025? >> NOT NECESSARILY. THAT IS WHY WE HAVE NOT GONE UNDERWEIGHT WITH GROWTH. WE ARE IN A NEUTRAL STANCE, IF YOU WILL. WE DON'T SEE THE CASE FOR THAT DISAPPOINTMENT TO COME IN 2025. AS WE GROW INTO MULTIPLE -- WE
HAVE SEEN IT A YEAR AND A HALF AGO. BUT THAT MATURATION OF THIS GROWTH PHASE AN INVESTMENT HAS TO COME AT SOME POINT WHERE THE MARKET PRICES IN FULLY THE BOLUS OF SUSPENDING THIS MARKETPLACE. WE DON'T FEEL THE STOCKS ARE BROKEN. WE DO NOT FEEL THE STORY IS A
MISS AT ALL. WE DO FEEL THAT GROWTH COULD COME MORE IN SYNC WITH VALUE AS FAR AS A PERFORMANCE AS THE MARKET DIGESTS THOSE VALUATIONS. KATIE: LET'S TALK MORE ABOUT VALUE BECAUSE VALUE HAS BROKEN A LOT OF HEARTS OVER THE LAST COUPLE OF YEARS. MANY EXPECT THAT TO CONTINUE. YOU HAVE THE VALUATION PIECE LOOKING GOOD WHEN IT COMES TO A LOT OF VALUE NAMES, VALUE INDEXES.
ARE YOU EXPECTING TO SEE EARNINGS GROWTH BROADEN OUT IF WE ARE IN A HIGHER FOR LONGER ENVIRONMENT WHERE THE FED CANNOT CUT AS MUCH AS MAYBE SOME OF THEM HAVE BEEN HOPING? KEITH: ALMOST HAS TO. THE MARKET EXPECT EARNINGS-PER-SHARE GROWTH OF 30% OVER 2025. THAT IS NOT AS CONCENTRATED IN THE MAG SEVEN AS IT WAS. ESPECIALLY IN 20 24. THAT BROADENING HAS TO OCCUR. THERE IS NO SIGN THAT THAT BROADENING IS EXPECTED. WE START TO APPRECIATE SOME OF THAT.
THOSE STOCKS HAVE PERFORMED. WE LOOK AT OTHER SPACES LIKE THAT. THEY HAVE AN OPPORTUNITY TO GROW INTO A BROADENING OF EARNINGS GROWTH. THE MARKET EXPECTS THAT. FROM A TOP-DOWN STANDPOINT, AND FROM AN INDEX STANDPOINT, IT HAS NOT MATERIALIZED IN A LOT OF INDUSTRIES THAT WERE CATEGORIZED . WE ARE EXCITED ABOUT A BALANCE THAT THE EARNINGS GROWTH WOULD LEAD TO PERFORMANCE. WE FEEL LIKE GROWTH DOES NOT
NECESSARILY HAVE TO HAPPEN. TIM: SINCE THE PUBLIC AND TRADITION -- INTRODUCTION OF CHATGPT, WE HAVE SEEN GAINS GO TO A HANDFUL OF COMPANIES, INCLUDING THE HYPER SCALARS AND WHATNOT. I WONDER IF WE ARE STARTING TO SEE THOSE AI GAMES GO TO OTHER -- GAINS GO TO OTHER TYPES OF COMPANIES. WHEN IS AI GOING TO ALLOW PROCTER & GAMBLE TO SELL MORE TIGHT AND TOILET PAPER WITH FEWER PEOPLE? KEITH: WE ARE STARTING TO SEE ACTUALLY SOME IMPLEMENTATION OF AI THAT COULD BENEFIT SECTORS AND NAMES IN INDUSTRIES OUTSIDE OF THE MAG SEVEN ALREADY. SEE THAT IN HEALTH CARE.
YOU START SEEING THAT DEVELOPMENT OF DRUGS HAS ACCELERATED. THEY HAVE IMPLEMENT AND WITHIN THOSE PLATFORMS. THE SPENDING COMES FIRST. PRODUCTIVITY GAINS COME NEXT. IT IS A CASE WHERE THE SPENDING WILL GROW TO THOSE NAMES THAT WILL IMPLEMENT THIS TECHNOLOGY. WITH HIGHER PRODUCTIVITY, THAT BENEFITS NAMES ACROSS THE BOARD.
AND THOSE WITH LOWER VALUATIONS IN THEORY SHOULD HAVE A QUICKER MOVE UP WHEN THOSE START ACCELERATING. KATIE: IT WILL BE FASCINATING TO SEE WHEN THE INVESTING TIMELINE TURNED TO THOSE APPLICATIONS, VERSUS THE HARDWARE AND THE CHIPMAKERS. WE HAVE TO LEAVE IT THERE. RIGHT TO KICK OFF 2025. THAT IS KEITH BUCHANAN, SENIOR PORTFOLIO MANAGER. COMING UP, TESLA DISAPPOINTS.
THE CARMAKER'S DELIVERY MISS, NEXT. TIM: TESLA FOURTH-QUARTER SALES OUTCOME AND DISAPPOINTING INVESTORS, POSTING AN ANNUAL VEHICLE SALES DROPPED FOR THE FIRST TIME IN MORE THAN A DECADE. JOINING US IS THE BLOOMBERG DETROIT BUREAU CHIEF. 1.7 9 MILLION VEHICLES SOLD IN 2024. FOURTH-QUARTER DELIVERIES, 400 95,570 -- 495,570. >> I THINK IT IS GREATER COMPETITION WHETHER IT IS CHINA OR DOMESTIC EV PLAYERS. THAT IS HELPED BY A LOT OF
CHINESE GOVERNMENT SUBSIDIES. IT IS TOUGHER SLITTING THEIR, AND THERE IS MORE COMPETITION IN THE U.S. WE HAVE NEW VEHICLES OUT THERE FROM HYUNDAI, KIA, GENERAL MOTORS. THEY ARE ALL PUSHING HARD. GM HAS A PRETTY CHEAP ONE WITH THE EQUINOX. AND EV SALES, GENERALLY, STILL SOME GROWTH, BUT SLOWER GROWTH.
SLOWER GROWTH AND MORE PLAYERS FIGHTING FOR THAT PIECE OF THE PIE. BUT TESLA IS NOT IMMUNE TO THAT EITHER. TESLA HAS GOT THIS LINEUP OF FOUR VEHICLES THAT COULD SELL IN PRETTY DECENT NUMBERS -- A NICHE CYBER TRUCK THAT HAS NOT SET THE WORLD ON FIRE IN TERMS OF GROWTH, UNLESS THEY GET THIS CHEAPER MODEL TO TYPE OF VEHICLE OUT THERE. YOU ARE NOT GOING TO SEE A LOT OF ELECTRIC VEHICLE GROWTH FROM THEM IN THE U.S. MARKET, AND THEY ARE GOING TO HAVE REALLY TOUGH COMPETITION IN EUROPE AND CHINA, GOING FORWARD. IT IS NOT A GROWTH STORY ON THE EV SIDE OF THEIR BUSINESS RIGHT NOW. KATIE: MAYBE THE HOPE IS THAT TESLA,
WHICH ALREADY IS THE MARKET LEADER, WOULD TAKE SHARE FROM ITS COMPETITORS. ELON MUSK, ON THE LATEST EARNINGS CALL, SAYS HE SEES 20% TO 30% GROWTH THIS YEAR, WHICH SEEMS OPTIMISTIC. ARE WE HEARING ANYTHING CLOSE TO THOSE FIGURES WHEN WE LOOK AT WHAT THE SELL SIDE IS ACTUALLY EXPECTING? >> THE SELL SIDE IS NOT EXPECTING THAT. THERE IS NOT A LOT OF CREDIBILITY. WE ARE SEEING A LOT OF SKEPTICISM.
WHAT WE DON'T KNOW -- TESLA IS SUPPOSED TO HAVE THIS CHEAPER EV COMING OUT THIS YEAR. THEY FAMOUSLY MISSED THEIR TARGETS FOR PRODUCTION AND SALES ALL THE TIME. IF IT DOES COME OUT AND IT IS CHEAPER, THAT IS WHERE THEY WOULD PRESUMABLY GET SOME GROWTH. IT IS GOING TO BE REALLY HARD STILL THAT MUCH MARKET SHARE UNLESS TESLA HAS A REALLY STEEP THIS COUNT.
THERE IS A WILDCARD HERE. TESLA IS NOT RELIANT ON GOVERNMENT SUBSIDIES, TAX BREAK FOR EV'S, AND THE OTHER COMPANIES ARE. MAYBE THEY CAN GAIN SHARE THAT WAY. THERE IS JUST NOT THAT MUCH GROWTH IN THE EV MARKET. I THINK THEY ARE GOING TO SEE
20% TO 30% GROWTH BASED OFF OF SALES. THE CHINESE COMPETITION IS TO TOUGH FOR THEM TO GET HUGE NUMBERS THERE. TIM: IS THERE A POLITICAL RISK, GIVEN ELON MUSK'S CLOSE ALLIANCE PRESIDENT-ELECT DONALD TRUMP, AND THAT IT COULD ALIENATE FOLKS WHO WOULD SAY IN ANOTHER WORLD I WOULD HAVE GONE FOR A TESLA, THAT THESE DAYS, NO THANKS? DAVID: THAT PHENOMENON, I THINK, ISRAEL. I THINK IT IS BAKED IN ALREADY. ELON WENT TO THE RIGHT SIDE OF THE POLITICAL AISLE SOME TIME AGO WITH THE THINGS HE HAS BEEN SAYING ON X, AND HE HAS BEEN WORKING WITH DONALD TRUMP FOR MONTHS NOW. THERE MAY BE MORE OF THAT COMING. PEOPLE WHO ARE PREDISPOSED TO
BUYING EV'S, ANY OF THEM ARE INTERESTED IN CLIMATE CHANGE AND THEY BUY IT FOR THAT REASON. I THINK ELON HAS PROBABLY ALIENATED A CERTAIN KIND OF CONSUMER. HOW BIG OF AN IMPACT THAT IS HAVING, IT IS TOUGH TO QUANTIFY. THAT DOES HAVE AN EFFECT FOR SURE. KATIE: LET'S TALK ABOUT THE FLIPSIDE OF THAT. MAYBE THE LEFT-LEANING CUSTOMER BASE OF TESLA DOES NOT WANT TO BUY MORE TESLAS.
THERE ARE A LOT OF EXPECTATIONS. THE SECOND DONALD TRUMP ADMINISTRATION IS GOOD NEWS FOR TESLA. WHAT ARE SOME OF THE POLICIES THAT ARE ON THE TABLE HERE THAT WOULD BENEFIT TESLA? DAVID: THE BIG ONE I THINK IS THE TRUMPET MINISTRATION PRIORITY OF SETTING UP A FEDERAL FRAMEWORK FOR AUTONOMOUS VEHICLES.
WHAT IS REALLY PUSHING THIS STOCK TO A LARGE DEGREE IS THE IDEA THAT TESLA IS NOT JUST AN AUTOMAKER THE WAY THAT BMW IS -- IT IS A TECH PLAY. YOU CAN ONLY DO THAT IF YOU HAVE ROBOTS, SELF DRIVING CARS. WITHOUT A FEDERAL FRAMEWORK THAT ENABLES SOMEBODY LIKE TESLA PUT A VEHICLE ON THE ROAD WITH NO STEERING WHEEL, NO BRAKE AND ACCELERATOR PEDALS, TOTALLY ROBOT DRIVEN -- THAT IS NOT GOING TO HAPPEN. THE TRUMP ADMINISTRATION WILL MAKE IT A PRIORITY. THE TRUMP ADMINISTRATION IS CAMPED OUT AT MAR-A-LAGO TRYING TO HELP WRITE THAT, I ASSUME. THAT WOULD CERTAINLY HELP TESLA. SAYING WE DO NOT NEED FEDERAL SUBSIDIES TO SELL OUR EV'S -- HE IS PROBABLY RIGHT ABOUT THAT. BUT GETTING RID OF THAT WOULD
HELP TESLA SELL MORE EV'S. IT REMAINS TO BE SEEN. TO GET RID OF THOSE INCENTIVES -- THAT IS FREE MONEY TO CONSUMERS THAT THEY DON'T GET ANYMORE. AND TESLA MAY HAVE TO DISCOUNT MORE. EVEN IF THEY DO STEAL MARKET SHARE, THEY HAVE TO HAVE BIG DISCOUNTS TO SELLERS VEHICLES. THE BOTTOM LINE IS ANY KIND OF TAX POLICY ON EV'S COULD BENEFIT ELON IF HE HAS AN OUTSIZED VOICE IN CRAFTING IT TO HELP HIS COMPANY. WE DON'T KNOW WHAT THAT LOOKS LIKE.
THAT CERTAINLY COULD HAPPEN. KATIE: TESLA SHARES CURRENTLY DOWN ALMOST 6%. DAVID WELSH, THANKS FOR THAT. THE OTHER MAJOR TESLA NEWS IS
ELON MUSK SAYING THAT THE EXPLOSION OF A TESLA CYBER TRUCK OUTSIDE OF THE TRUMP LAS VEGAS HOTEL WAS PROBABLY AN ACT OF TERRORISM. THE DRIVER WAS KILLED AND SEVEN PEOPLE SUFFERED MINOR INJURIES. IT'S BRICK IT DOWN WITH MIKE SHEPARD JOINING US NOW. THIS IS A DEVELOPING SITUATION. WHAT DO WE KNOW SO FAR? MIKE: WHAT WE KNOW IS THAT THIS VEHICLE, LIKE THE VEHICLE USED IN THE NEW ORLEANS TERROR ATTACK , WAS RENTED VIA THE TRURO APP. THE COMPANY ITSELF MAINTAINS THERE IS NO CONNECTION BETWEEN THEM, THAT THEY CAN SEE NEITHER THE SUSPECT IN NEW ORLEANS NOR THE MAN WHO RENTED THE CYBER TRUCK THAT EXPLODED IN LAS VEGAS HAD ANY KIND OF A CRIMINAL BACKGROUND THAT WOULD HAVE SHOWN UP IN THE CHECKS THAT THE COMPANY RUNS. WE KNOW ABOUT THE MAN IDENTIFIED IN LAS VEGAS. HE IS IDENTIFIED AS AN ARMY
RESERVIST WHO WAS ON LEAVE FROM THE SERVICE TEMPORARILY. HE WAS FROM COLORADO SPRINGS. WE DON'T KNOW YET WHAT EXACTLY THE CAUSE WAS OF THIS EXPLOSION IN LAS VEGAS.
ELON MUSK HAS SAID ON X -- HE POSTED LAST NIGHT THAT HE THOUGHT IT LOOKED MORE LIKE BUT DID NOT OFFER EVIDENCE OF AN EXPLOSION RELATED TO EITHER WHAT HE SAID WERE FIREWORKS OR PERHAPS A BOMB IN THE BED OR BACK OF THE TRUCK, RATHER THAN A MALFUNCTION BY THE BATTERIES. WE HAVE SEEN THAT IN OTHER TESLA VEHICLES. TIM: AS KATIE SAID, THIS IS A DEVELOPING STORY. WE DON'T KNOW MUCH YET. I'M CURIOUS WHAT HAS COME OUT AT THIS POINT. DO WE KNOW HOW THE IGNITION ACTUALLY HAPPENED, HOW WHAT WAS IN THE BACK OF THE TRUCK IGNITED? WE KNOW IF THE VEHICLE BATTERY BURNED, OR IF FIRE OFFICIALS WERE ABLE TO PUT OUT THE FIRE BEFORE THAT HAPPENED? MIKE: THOSE ARE GOOD AND OPEN QUESTIONS THAT WE ARE WAITING FOR AUTHORITIES TO SHED MORE LIGHT ON.
HAVE HEARD OF COURSE FROM ELON MUSK, THE WORLD'S RICHEST MAN. ONE OF THE COFOUNDERS OF TESLA AND NOW THE OWNER OF X LAYING THIS OUT ON SOCIAL MEDIA. THE DETAILS FROM AUTHORITIES INCLUDING THE LAS VEGAS FIRE DEPARTMENT AND FBI WHICH WAS ALSO INVESTIGATING THIS INCIDENT -- WE STILL DO NOT HAVE A FULL ACCOUNTING OF WHAT HAPPENED, INCLUDING THE KIND OF FORENSIC QUESTIONS YOU ARE ASKING NOW. WE WILL BE EAGER TO HEAR FROM LAW ENFORCEMENT AND SAFETY AUTHORITIES THERE AS WE GET MORE ANSWERS. TIM: MORE QUESTIONS THAN ANSWERS RIGHT NOW, MIKE. BUT I AM CURIOUS ABOUT POTENTIAL SIMILARITIES BETWEEN WHAT HAPPENED IN NEW ORLEANS AND LAS VEGAS, THE TECH ANGLE, WITH VEHICLES RENTED ON THE APP FOR A, THE CONNECTION BOTH BEING MEMBERS OR FORMER MEMBERS OF THE U.S. ARMED FORCES.
WHAT ARE SIMILARITIES RIGHT NOW? MARK: -- MIKE: AUTHORITIES WOULD BE QUICK TO NOTE THAT THOSE ARE COINCIDENTAL. MANY PEOPLE USE THIS APP HAVE USED -- USE THIS APP TO RENT VEHICLES. THEY HAPPEN TO NOTE THAT I HAVE AN ACQUAINTANCE WHO RENTED A CYBER TRUCK IN LAS VEGAS ABOUT THE SAME TIME.
IT IS NOT AN UNCOMMON TIME FOR PEOPLE TO BE USING SOMETHING LIKE THIS. IF IT WAS AVIS OR HERTZ, I DON'T KNOW IF WE WOULD BE ASKING THE SAME KINDS OF QUESTIONS. WHEN IT COMES TO PRIOR MILITARY SERVICE, WE HAVE SEEN THIS AGAIN AND AGAIN. SOMETIMES ACTORS IN THESE MASS CASUALTY EVENTS -- WE CAN THINK ALL THE WAY BACK TO 1995, THE BOMB THAT TOOK OUT THE EDWARD R. MURROW WIELDING IN OKLAHOMA CITY. THAT WAS PERPETRATED BY TWO MEN WHO PREVIOUSLY SERVED IN THE U.S. ARMY. AGAIN, COINCIDENCE, BUT WE
DON'T KNOW WHETHER THERE IS ANY CONNECTION, VALID OR VIABLE, OR EVEN IF WHAT HAPPENED IN LAS VEGAS WAS AN ACCIDENT OR A DELIBERATE AND MALICIOUS ACT. KATIE: REALLY APPRECIATE YOUR REPORTING. THAT IS BLOOMBERG'S MIKE SHEPPARD. WE WILL BRING YOU MORE DETAILS AS WE HAVE THEM. THAT'S ASSESS THE FUTURE OF
H-1B VISAS UNDER THE NEW ADMINISTRATION, AND THE IMPACT ON AMERICA'S TECH INDUSTRY. THIS WAS A FIRESTORM OVER SOCIAL MEDIA OVER THE HOLIDAY. LET'S BRING IN -- ACTUALLY, LET'S HIT PAUSE. WE ARE GOING TO GO TO A PRESS CONFERENCE BEING HELD BY THE FBI AND LOCAL OFFICIALS, PROVIDING AN UPDATE ON THE BOURBON STREET ATTACK THAT OCCURRED ON NEW YEAR'S DAY. >> THE FLAGS OF ALL STATE BUILDINGS AT HALF-MAST. THOSE
LIVES THAT WERE LOST -- IT IS A HORRIFIC ACT OF VIOLENCE. I ALSO THINK THAT IT IS IMPORTANT TO REMEMBER THAT WHAT HAPPENED YESTERDAY WAS A KIM -- AKIN TO THOSE WHO ARE OLD ENOUGH TO REMEMBER JIGSAW PUZZLES, AND THAT YOU WOULD TAKE A THOUSAND PIECE JIGSAW PUZZLE AND YOU WOULD EMPTY THE BOX, AND YOU HAVE TO START SIFTING THROUGH THOSE PIECES, AND YOU WANT TO START -- IF YOU ARE REAL GOOD, YOU START AT THE CORNERS, RIGHT? YOU TRY TO PUT YOUR CORNERS TOGETHER. FROM YESTERDAY TO TODAY, OVER A THOUSAND LAW ENFORCEMENT AGENTS AND OFFICERS, MEN AND WOMEN, HAVE BEEN POURING OVER -- PORING OVER, CEMENTS OF DATA, VIDEOS, SURVEILLANCES, INTERVIEWS, TRACKING DOWN EVERY POSSIBLE LEAD THAT CAME TO US, WHETHER IT WAS YOUR NEW ORLEANS POLICE DEPARTMENT, THE LOUISIANA STATE POLICE, THE FBI, OR OTHER FEDERAL AGENCIES. ALSO YESTERDAY WE WE DECLARE -- I ISSUED AN EMERGENCY DECLARATION.
THAT DECLARATION WAS MEANT TO STREAMLINE RESOURCES AND COMMUNICATIONS BETWEEN STATE, LOCAL, AND FEDERAL PARTNERS, AND WE ARE SEEING THE RESULTS OF IT. I ALSO WANT TO REMIND EVERYONE THAT WHAT IS GOING ON IN THIS CITY AND THIS STATE IS TWOFOLD. WE HAVE GOT AN ACTIVE CRIMINAL INVESTIGATION GOING ON, WHILE WE ARE ALSO CONTINUING TO SECURE THE CITY IN PREPARATION FOR A 3:00 KICKOFF TIME FOR THE SUGAR BOWL. WITH THAT, I WOULD ALSO REMIND THOSE WHO ARE IN THE CITY, AND AS FAR AS STATE RESOURCES ARE CONCERNED, WE HAVE THE LOUISIANA STATE POLICE, THE LOUISIANA NATIONAL GUARD, WHICH IS PART OF THE EMERGENCY DECLARATION, EACH ALLOWED US TO PUT AN ENTIRE COMPANY ON THE GROUND. THOSE BECOME FORCE MULTIPLIERS, IS WHAT WE CALL THAT IN LAW ENFORCEMENT AND THE MILITARY. THAT HELPS TO ADD TO THE
RESOURCES THAT WE HAVE. FISHERIES, THE DEPARTMENT OF CORRECTIONS, DXF, DSS, OUR VETERANS AFFAIRS OUR PROBATION AND PATROL -- ALL STATE AGENCIES -- ANY STATE AGENCY WHO HAS CERTIFIED OFFICERS ARE HERE IN THIS CITY TO HELP SECURE THE CITY. WITH THAT, I WOULD LIKE TO TURN IT OVER TO CHRISTOPHER WRAY, THE DEPUTY ASSISTANT DIRECTOR OF THE FBI'S COUNTERTERRORISM DIVISION. CHRIS? CHRIS:
THANK YOU, GOVERNOR LANDRIEU. GOOD MORNING. I AM FBI DEPUTY ASSISTANT DIRECTOR CHRISTOPHER WRAY. FROM OUR COUNTERTERRORISM DIVISION AT HEADQUARTERS. I'M ALSO JOINED BY ASSISTANT SPECIAL AGENT IN CHARGE OLIVIA DUNCAN FROM OUR NEW ORLEANS OFFICE, WHO YOU HEARD FROM YESTERDAY. I AM HERE TO DISCUSS NOT ONLY
THE LATEST INVESTIGATIVE INFORMATION WE HAVE IN NEW ORLEANS. THERE ARE OTHER INVESTIGATE OF ACTIVITIES OUTSIDE OF THE STATE. FIRST AND MOST IMPORTANTLY, I WANT TO SEND OUR DEEPEST CONDOLENCES TO THE VICTIMS OF THIS HORRIFIC ATTACK ON THEIR LOVED ONES.
14 INNOCENT VICTIMS WERE KILLED IN THIS SENSELESS ATTACK AND AT LEAST 35 WERE INJURED. WE CANNOT EASE THE GRIEF PEOPLE ACROSS THE NATION ARE FEELING AT THIS TIME. WE STAND WITH YOU AND IN SUPPORT OF YOU. ALL THE RESOURCES -- WE ARE GOING TO GO INTO THAT A LITTLE BIT LATER. ALL THE RESOURCES OF THE FBI
ARE BEING FOCUSED WHEN TRACKING DOWN EVERY PIECE OF EVIDENCE, EVERY LEAD, EVERY INTERVIEW, EVERY POTENTIAL -- EVERY POTENTIAL LEAD WE HAVE GOT. WHILE I WON'T BE ABLE TO ANSWER ALL YOUR QUESTIONS TODAY, MY GOAL IS TO BE AS FORTHCOMING AS POSSIBLE WITH YOU ON WHAT WE HAVE UNCOVERED SO FAR. FIRST AND FOREMOST, LET ME BE CLEAR ABOUT THIS POINT. THIS WAS AN ACT OF TERRORISM. IT WAS PREMEDITATED AND AN EVIL ACT. THIS WAS OBVIOUSLY A CRITICAL
INCIDENT. AND WITH THAT, LOTS OF INFORMATION AND TIPS COME POURING IN FROM LAW ENFORCEMENT, FIRST RESPONDERS, AND THE PUBLIC. WE HAVE BEEN AGGRESSIVELY RUNNING DOWN THESE TIPS AND INFORMATION. AS YOU ALL KNOW, THAT TAKES TIME, AND WE WILL CONTINUE TO DO SO UNTIL EVERY LEAD HAS BEEN FOLLOWED THROUGH ON.
THIS INVESTIGATION IS ONLY A LITTLE MORE THAN 24 HOURS OLD. SO I ASK YOU TO KEEP IN MIND THAT AS I GO THROUGH SOME OF THE SPECIFICS LATER. WHAT AT THIS POINT, CURRENTLY, AND THIS IS ANOTHER FACT I WANT TO BE CLEAR ON -- WE DO NOT ASSESS, AT THIS POINT, THAT ANYONE ELSE INVOLVED IN THIS ATTACK -- IS INVOLVED IN THIS ATTACK, EXCEPT FOR THE SUBJECT YOU HAVE ALREADY BEEN BRIEFED ON. A LITTLE BIT ABOUT WHAT THE FBI IS DOING. WE ARE SURGING PEOPLE AND ASSETS TO THE AREA FROM ACROSS THE REGION AND ACROSS THE NATION.
SPECIAL AGENTS IN MULTIPLE FIELD OFFICES ACROSS THE COUNTRY HAVE BEEN DEPLOYED AND ARE ASSISTING WITH POTENTIAL ASPECTS OF THIS INVESTIGATION AND FOLLOWING UP ON EVERY LEAD. ADDITIONAL TEAMS OF PROFESSIONAL STAFF AND VICTIM SPECIALISTS ARRIVED TO PROVIDE MORE POWER AND ASSISTANCE TO THE VICTIMS AND THEIR FAMILIES. WE HAVE ALSO FORWARD DEPLOYED A NUMBER OF OUR CRITICAL INCIDENTS RESPONSE GROUP ASSETS, INCLUDING MEMBERS OF THE HOSTAGE TEAM, SPECIAL AGENT BOMB TECHNICIANS, AND CRISIS MANAGEMENT COORDINATORS. IN ADDITION, WE HAVE DEPLOYED MORE EVIDENCE RESPONSE TECHNICIANS TO CONTINUE TO PROCESS THE VARIOUS SCENES THAT WE HAVE. SO FAR, WE HAVE RECEIVED JUST OVER 400 TIPS FROM THE PUBLIC, AND THAT INFORMATION IS BEING FOLLOWED UP BOTH HERE IN NEW ORLEANS AND ACROSS THE COUNTRY. SOME OF THE TIPS ARE IN NEW ORLEANS, AND THERE ARE OTHER TIPS AND OTHER STATES ACROSS THE COUNTRY THAT WE ARE FOLLOWING UP ON.
THE FBI TEAM AND OUR LAW ENFORCEMENT PARTNERS HERE ARE ALSO REVIEWING HUNDREDS OF HOURS OF SURVEILLANCE IN OTHER VIDEO FROM THE FRENCH QUARTER AND OTHER LOCATIONS. AS FOR TIMELINE, AT THIS POINT, INVESTIGATORS BELIEVE JABAR PICKED UP THE RENTED F-150 IN HOUSTON, TEXAS ON DECEMBER 30. HE THEN DROVE FROM HOUSTON TO NEW ORLEANS ON THE EVENING OF THE 31ST, AND HE POSTED SEVERAL VIDEOS TO AN ONLINE PLATFORM, PROCLAIMING HIS SUPPORT FOR ISIS.
THERE ARE VIDEOS WHICH ARE TIME STAMPED BEGINNING AT 1:29 A.M., WITH THE LAST AT 3:02 A.M.. IN THE FIRST VIDEO, JABBAR EXPLAINS HE ORIGINALLY PLANNED TO HARM HIS FAMILY AND FRIENDS, WAS CONCERNED THE NEWS HEADLINES WOULD NOT FOCUS ON THE WAR BETWEEN THE BELIEVERS AND THE DISBELIEVERS. END QUOTE. ADDITIONALLY, HE STATED HE HAD JOINED ISIS BEFORE THIS SUMMER. HE ALSO PROVIDED A WILL AND TESTAMENT. FBI AND ATF -- WE HAVE A COUPLE DIFFERENT SCENES AT THE LOCATION. AS WE HAVE RELEASED THE SCENE
AT BOURBON STREET, THAT SCENE HAS BEEN RELEASED. WE ALSO HAVE A SCENE OFF OF A MANDEVILLE ADDRESS WHERE WE ARE CURRENTLY SEARCHING THAT SCENE. FBI AND ATF AGENTS HAVE SECURED THAT HOUSE, AND THAT LOCATION IS BEING SEARCHED FOR POTENTIAL EVIDENCE. ON NEW YEAR'S MORNING, JABBAR OPENED FIRE AFTER RAMMING THROUGH A BLOCKED OFF AREA OF BOURBON STREET, USED HIS TRUCK AS A WEAPON TO RUN OVER THE VICTIMS. TEAMS OF SPECIALISTS ARE ON THE GROUND IN NEW ORLEANS, ASSISTING SURVIVORS OF THE ATTACK AND LOVED ONES OF THE DECEASED.
WE DO NOT BELIEVE THE PUBLIC IS IN ANY DANGER AROUND ANY OF THESE LOCATIONS. THREE PHONES LINKED TO JABBAR HAVE BEEN RECOVERED, AND DIGITAL MEDIA EXPLOITATION IS A PRIORITY TO SEE WHAT IS ON THE DEVICES, AND DETERMINE IF THERE ARE ANY OTHER POTENTIAL LEADS. WE HAVE RECOVERED TWO LAPTOPS AND ARE CURRENTLY REVIEWING THEM FOR ANY POTENTIAL LEADS. THOSE LAPTOPS WERE RECOVERED AT
THE MANDEVILLE ADDRESS. EVIDENCE TECHNICIANS WILL ALSO BE GOING OVER THE F-150 TRUCK JABBAR WAS DRIVING. AS YOU KNOW, WE RECOVERED AND ISIS FLAG FROM THE BACK OF THE VEHICLE. HE ACQUIRED THE VEHICLE AS HE MADE HIS WAY TO NEW ORLEANS. FBI BOMB TECHNICIANS ALSO RECOVERED TWO IUDS IN COOLERS -- ONE FROM THE CROSS SECTION OF BOURBON AND NEW ORLEANS STREET, AND THE SECOND AT AN INTERSECTION APPROXIMATELY TWO BLOCKS AWAY. THERE WERE MULTIPLE REPORTS OF OTHER DEVICES. THOSE REPORTS TURNED OUT TO BE
MISINFORMATION OR NOT ACTUAL FUNCTIONING DEVICES. THOSE ARE THE ONLY TWO DEVICES THAT WE HAVE BEEN ABLE TO RECOVER THAT WERE FUNCTIONAL. BOTH DEVICES WERE RENDERED SAFE ON SCENE. WE DID OBTAIN SURVEILLANCE FOOTAGE SHOWING JABBAR PLACING THE DEVICES WHERE THEY WERE FOUND. TWO OTHER -- AS I SAID BEFORE, TWO OTHER ITEMS OF INTEREST WERE DETERMINED NOT TO BE IUDS. A LITTLE BIT ABOUT JABBAR. JABBAR HIMSELF WAS BORN IN THE UNITED STATES AND IS A U.S.
MILITARY VETERAN. WE'RE LOOKING AT EVERYTHING IN HIS LIFE. WHILE WE HAVE INTERVIEWED MANY PEOPLE WHO KNOW JABBAR, WE STILL NEED TO TALK TO OTHERS.
WHETHER YOU KNOW JABBAR PERSONALLY, WORKED WITH HIM, SERVED IN THE MILITARY, OR SAW HIM IN NEW ORLEANS OR TEXAS, WE NEED TO TALK TO YOU. YOU MAY NOT THINK YOU HAVE RELEVANT INFORMATION, BUT WHAT YOU KNOW COULD TIE IN TO ONE OF OUR INVESTIGATIVE LEADS. SPECIFICALLY, WE WANT TO TALK TO ANYONE WHO WAS IN THE FRENCH QUARTER AT NEW YEAR'S EVE OR EARLY ON NEW YEAR'S DAY. THAT INCLUDES PEOPLE SPOTTED
NEAR ONE OF THE TWO IED'S ON BOURBON STREET. THE IED WAS INSIDE A COOLER AND MANY PEOPLE STOPPED AND LOOKED AT THE COOLER, AND THEN CONTINUED ON THEIR WAY. THAT'S BE CLEAR AGAIN. WE DO NOT BELIEVE AT THIS POINT THESE PEOPLE ARE INVOLVED IN THIS INCIDENT IN ANY WAY. WE WANT TO SPEAK TO THEM AS WITNESSES AND WANT TO KNOW WHAT THEY SAW, AND WHEN. I WENT DOWN TO THE CRIME SCENE
LAST NIGHT. IT IS VERY HARD TO PUT INTO WORDS WHAT IT LOOKED LIKE AND HOW DIFFICULT IT WAS TO SEE. ANYONE WITH INFORMATION CAN CALL US AT 18 HUNDRED CALL FBI, OR SEND DIGITAL TIPS TO FBI.GOV/ BOURBON STREET ATTACK. EARLY THIS MORNING, EVIDENCE
RESPONSE TEAMS FINISH THEIR WORK AT THE CRIME STRAIN. BOURBON STREET HAS BEEN TURNED OVER TO THE CITY OF NEW ORLEANS. AS YOU KNOW, THERE IS ALSO AN FBI INVESTIGATION IN LAS VEGAS. WE ARE FOLLOWING UP ON ALL POTENTIAL LEADS AND NOT RULING ANYTHING OUT. HOWEVER, AT THIS POINT, THERE IS NO DEFINITIVE LINK BETWEEN THE ATTACK HERE IN NEW ORLEANS AND THE ONE IN LAS VEGAS. I WILL PREFACE EVERYTHING WITH WHAT I STARTED WITH IN THE BEGINNING, WHICH WAS THIS IS VERY EARLY IN AN INVESTIGATION LIKE THIS.
OUR THOUGHTS AND PRAYERS ARE WITH THE VICTIMS OF THIS TRAGEDY , AND EVERYONE IMPACTED ACROSS THE COUNTRY. THEY REMAIN AT THE HEART OF OUR INVESTIGATION. ALSO, ALTHOUGH I HAVE ONLY BEEN ON THE GROUND A SHORT TIME, I WANT TO EXPRESS A SINCERE APPRECIATION FOR OUR PARTNERS HERE, WHICH INCLUDE THE U.S. ATTORNEY'S OFFICE, HSI, ATF,
THE NEW ORLEANS PD, LOUISIANA STATE POLICE, THE GOVERNOR'S OFFICE, AND COUNTLESS OTHERS. AT THIS POINT, I'M GOING TO TURN IT OVER TO THE SPECIAL AGENT IN CHARGE OF ATF, JOSH JACKSON. JOSH: GOOD AFTERNOON. AS STATED, MY NAME IS JOSHUA
JACKSON. I'M THE SPECIAL AGENT IN CHARGE OF THE ATF NEW ORLEANS FILM DIVISION, AND ATF'S PRIMARY MISSION IS PREVENTING, REDUCING, AND SOLVING VIOLENT CRIME THROUGH THE UNITED STATES AND ABROAD. THE SOLVING PART IS THE FOCUS OF THIS INVESTIGATION.
ATF RESOURCES HAVE BEEN BROUGHT TO BEAR TO THE CITY. TO FOCUS WITH OUR FEDERAL, STATE, AND LOCAL PARTNERS -- WE SPOKE ABOUT THE SCENE THAT IS STILL BEING PROCESSED. THERE IS A TEAM OF CERTIFIED FIRE INVESTIGATORS, CERTIFIED EXPLOSIVE SPECIALISTS, FIRE ENGINEERS, ELECTRICAL ENGINEERS. THESE FOLKS WILL GIVE US ADDITIONAL INVESTIGATIVE LEADS TO IDENTIFY WHAT HAPPENED IN MANDEVILLE AND IDENTIFY HOW THE FIRE STARTED, AND MOVE THE INVESTIGATION FORWARD FROM THERE. ADDITIONAL RESOURCES THAT ATF HAS BROUGHT TO BEAR INTO THE CITY AS OUR ATF SPECIAL RESPONSE TEAM IS A TACTICAL TEAM CAPABLE OF HANDLING ANY SORT OF ENFORCEMENT OPERATION. THIS TEAM IS DEPLOYED, ONSET,
AND READY FOR THE SUGAR BOWL TODAY. THIS TEAM IS ALSO MADE AVAILABLE TO LOUISIANA STATE POLICE AND THE NEW ORLEANS POLICE DEPARTMENT, TO ASSIST WITH ANY EFFORT THEY MAY HAVE DURING THIS POPO. ADDITIONAL RESOURCES, AS THE GOVERNOR ALLUDED TO -- HE EXECUTED EXECUTIVE POWERS AND HAD AN EMERGENCY DECLARED WHERE ATF WAS ABLE TO TAP INTO EMERGENCY SUPPORT FUNCTION 13 RESOURCES.
THIS ALLOWED US TO BRING ADDITIONAL EXPLOSIVE DETECTION CANINES, SO WE CAN SAFELY SWEEP THE CITY AND THE SUPER BOWL -- SUGAR BOWL IN PREPARATION FOR THE GAME TODAY. THESE RESOURCES WILL STILL BE IN THE CITY AS WE LEAD UP TO THE SUPER BOWL AND THROUGH MARDI GRAS. THESE TYPE OF ATF RESOURCES WILL BE HERE. THE LAST RESOURCES THE ATF HAS BROUGHT TO BEAR, PROBABLY THE MOST IMPORTANT, IS OUR VICTIM RESOURCE COORDINATORS. THESE FOLKS PROVIDE RESOURCES TO VICTIMS AND FAMILY MEMBERS THAT HAVE SUFFERED GREATLY DURING THIS TRAGEDY. THE ENTIRE CITY HURTS. AT THE VICTIMS AND THE FAMILY
MEMBERS ARE IN NEED OF RESOURCES AND CARE LONG AFTER THIS INVESTIGATION WRAPS UP. THIS TIME NEXT YEAR, IT WILL BE HARD FOR THE FAMILIES AND FRIENDS WHO SUFFERED DURING THIS EVENT. OUR VICTIM WITNESS COORDINATORS ARE WORKING WITH THE FBI, THE CITY OF NEW ORLEANS COORDINATORS, TO PROVIDE RESOURCES OUT HERE. AS WE MOVE FORWARD, ATF WILL BE COMMITTED. WE WILL WORK TO MOVE THIS INVESTIGATION FORWARD WITH THAT, I'M GOING TO TURN IT OVER TO OUR MAYOR OF THIS GREAT CITY. >> THANK YOU SO MUCH. GOOD MORNING ONCE AGAIN.
I WANT TO ECHO MY THANK YOU'S TO THE UNIFIED COMMAND, OUR LAW ENFORCEMENT PARTNERS, AND EVERY SINGLE LEVEL. THANK YOU FOR YOUR PARTNERSHIP. I ALSO WANT TO THANK THE RESIDENTS AND VISITORS TO THE CITY OF NEW ORLEANS FOR YOUR SUPPORT, AND YOUR PRAYERS. OUR HEARTS AND PRAYERS CONTINUE TO GO OUT TO THE VICTIMS' FAMILIES. KATIE: YOU HAVE BEEN LISTENING TO A NEWS CONFERENCE WITH LOCAL OFFICIALS AND THE FBI FOLLOWING THE DEADLY ATTACK IN THE NEW ORLEANS FRENCH QUARTER ON NEW YEAR'S EVE WHICH INJURED DOZENS. WE HEARD FROM A DEPUTY FBI
DIRECTOR WHO SAID THE SUSPECT IN QUESTION IS A MAN NAMED CHAM SAID IN JABBAR -- SHAMSUD-DIN JABBAR. APPARENTLY, THE SUSPECT CLAIMED TO HAVE JOINED ISIS IN THE SUMMER, THIS CAR IN HOUSTON, AND THERE IS NO DEFINITIVE LINK BETWEEN THE ATTACK IN NEW ORLEANS AND THE SEVER TRUCK LAS VEGAS ATTACK THAT ALSO OCCURRED IN THE PAST COUPLE DAYS. LET'S BRING IN MIKE SHEPPARD, WHO HAS BEEN LISTENING TO THIS PRESS CONFERENCE. NO DEFINITIVE LINK BETWEEN THESE ATTACKS. INTERESTING TO HEAR THERE IS ONLY ONE SUSPECT INVOLVED WHEN IT COMES TO LOUISIANA. MIKE:
THAT WAS A BREAK FROM WHAT WE HAVE BEEN HEARING FROM THE FBI AS LATE AS YESTERDAY AFTERNOON, WHEN THEY SAID THERE WAS THE POSSIBILITY OF MORE THAN ONE PERSON HAVING BEEN INVOLVED. HE MAY HAVE HAD SOME ASSISTANCE IN PULLING THIS TOGETHER. THERE MAY HAVE BEEN OTHER CONSPIRATORS.
BUT THE FBI MADE CLEAR THAT THAT WAS NOT THE CASE. THEY OFFERED MORE DETAILS ON THE TIMELINE, LAYING OUT WHEN HE RENTED THIS TRUCK HE USED IN THE ATTACK, THE FORD F1 50, AND WHAT HE HAD DONE AFTERWARDS, WHICH WAS TO POST SOME VIDEOS, INCLUDING WHERE HE CLAIMED TO HAVE JOINED ISLAMIC STATE AND ALSO CLAIMED TO HAVE THOUGHT ABOUT CAUSING HARM TO FAMILY MEMBERS. BUT HE BACKED OFF, SAYING HE WOULD RATHER PUT THE FOCUS ON WHAT HE SEES AS THE STRUGGLE AHEAD FOR WHAT HE WAS PURPORTEDLY WAITING THIS ATTACK FOR. THEY SAID THEY RECOVERED MOBILE PHONES AND LAPTOPS THAT BELONGED TO THE SUSPECT, AND THEY WILL BE SCOURING THROUGH THEM. OFFICIALS INCLUDING THE
GOVERNOR OF LOUISIANA, THE MAYOR OF NEW ORLEANS -- THEY ALL MADE CLEAR THAT THIS INVESTIGATION IS STILL IN THE EARLY STAGES. THE GOVERNOR EVEN MADE IT SOUND LIKE THEY ARE TRYING TO PUT THESE PIECES TOGETHER. THEY STILL HAVE A LOT MORE TO LEARN ABOUT WHAT DROVE THIS MAN TO COMMIT THIS TERRIBLE ACT. TIM: WE HEARD THE DEPUTY FBI ASSISTANT DIRECTOR EMPLOY THE PUBLIC FOR HELP. HE ALSO SAID DEFINITIVELY THAT THIS WAS AN ACT OF TERRORISM THAT WAS PREMEDITATED AND AN EVIL ACT. HOW DOES THAT CHANGE THE
INVESTIGATION? WHAT DOES IT MEAN THAT IT HAS BEEN DESIGNATED TERRORISM? WHY GO OUT OF THE WAY TO SAY THAT? MIKE: IN PART BECAUSE IT ENABLES THEM TO MOBILIZE MORE RESOURCES. IT BRINGS A CERTAIN URGENCY. WE HEARD THE FBI OFFICIAL TALK ABOUT HOW THIS WOULD BE AN INTERAGENCY EFFORT. THERE ARE AS MANY AS 1000 LAW ENFORCEMENT PERSONNEL ALREADY INVOLVED, SIFTING THROUGH DATA. VIDEO RECORDINGS -- ANY
FORENSIC EVIDENCE THEY MAY OBTAIN FROM THE SCENE, TO OBTAIN A BETTER PICTURE OF WHAT HAPPENED, AND WHY. OF COURSE, AS WE ASSESS THIS INCIDENT, WE ARE LOOKING AHEAD TO EVENTS HERE IN WASHINGTON. OFFICIALS INCLUDING THE METROPOLITAN POLICE APARTMENT ARE LOOKING AS WELL. COMING UP, MUCH MORE ON BLOOMBERG TECHNOLOGY. TERMINAL AS WELL AS ON APPLE, SPOTIFY, AND I HEART. THIS IS BLOOMBERG. KATIE:
2024 WAS DEEMED THE YEAR OF ARTIFICIAL INTELLIGENCE, BUT MANY ARE WAITING TO SEE IF WALL STREET WILL GROW IMPATIENT WITH THE AI MOVEMENT. WE ARE JOINED NOW. TIE THIS INTO WHAT YOU CALL THE BRAIN ROT ECONOMY. ALL THIS ENTHUSIASM WE ARE SEEING OVER AI AND WHAT IS ACTUALLY HAPPENING.
>> PIERCING INVESTORS EXCITED THAT AI IS GOING TO COME GOOD THIS YEAR AND REVENUES ARE GOING TO START BRINGING. CAPITAL EXPENDITURE WILL GO THROUGH THE ROOF. WHERE THAT LINKS WITH THE BRAIN ROT SIDE OF THINGS IS THAT ONE OF THE EARLY USES OF AI HAS BEEN TO FILL THINGS LIKE FACEBOOK WITH NONSENSE, REALLY. PICTURES THAT DON'T MAKE SENSE. OR TEXT THAT IS NOT REALLY FUN TO READ, I THINK. I THINK THERE IS GOING TO BE AN AWAKENING FROM PEOPLE SAYING, WHY AM I LOOKING AT THIS? THAT WILL SPELL TROUBLE FOR COMPANIES LIKE META. KATIE: YOUR PREDICTION -- TIM: YOUR PRODUCTION ABOUT TIKTOK -- WILL IT BE BANNED? >> THE SUPREME COURT WILL HEAR ARGUMENTS ON JANUARY 10, AND MANY LEGAL OBSERVERS SAY IT IS UNLIKELY THE SUPREME COURT WILL OVERTURN THE LOWER COURT RULING, WHICH IS THAT THE BAN IS CONSTITUTIONAL. THE NEXT WILDCARD IS WHAT IS
TRUMP GOING TO DO. HE HAS ALREADY ASKED FOR THE BAN TO BE PAUSED. WHETHER THEY GRANT HIM THAT IS NOT CLEAR. BUT I THINK IT IS GOING TO TAKE SOME OVERTURNING FOR THIS TO STOP. I THINK IF YOU ARE ON TIKTOK, YOU SHOULD BE GETTING READY TO PERHAPS MOVE SOMEWHERE ELSE. KATIE: DAVE LEE FROM BLOOMBERG OPINION, THAT IS THE PERFECT SEGUE INTO OUR NEXT GUEST.
LET'S KEEP THIS GOING WITH A LAW ENFORCEMENT AT CORNELL AND FOUNDING DIRECTOR OF THE UNIVERSITY'S CIVIL RIGHTS AND CIVIL LIBERTIES CLINIC. THE SUPREME COURT WILL HEAR TIKTOK ARGUMENTS ON JANUARY 10. THE BAN WOULD KICK IN ON JANUARY 19. THAT IS A QUICK POSSIBLE TURNAROUND. AND YOU HAVE PRESIDENT ELECT
DONALD TRUMP. HOW ARE YOU THINKING THINGS WILL SHAKE OUT FROM WHERE IT STANDS RIGHT NOW? >> THANK YOU FOR HAVING ME. I AM SIMILARLY SKEPTICAL THAT THE SUPREME COURT WILL OVERTURN THE LOWER COURT RULING. I THINK THE SCHEDULE OF THE ARGUMENT BEING SET TO BE MADE QUICKLY BEFORE THE EFFECTIVE DATE OF THE BAN -- BUT I AM NOT OPTIMISTIC THAT THE COURT WILL MAKE A DIFFERENT FINDING ULTIMATELY. WHETHER OR NOT PRESIDENT-ELECT
TRUMP IS ABLE TO CHANGE THAT THROUGH PERSUADING CONGRESS TO OVERRIDE OR RESCIND THE LAW OR SOME OTHER EXECUTIVE ACTION, I THINK WE WILL HAVE TO WAIT AND SEE. I ALSO DON'T THINK THE SUPREME COURT ITSELF WILL TAKE UP PRESIDENT-ELECT TRUMP'S CALL FOR A STAY, GIVEN THE LACK OF PRECEDENT FOR THAT KIND OF MOVE. KATIE: -- TIM: YOU HAVE SUPPORTED TIKTOK FROM A LEGAL PERSPECTIVE. WHY IS THAT? WHAT IS THE CASE? >> I THINK THIS LAW IS TARGETED PRETTY EXPLICITLY AT THE COMPANY. MOST PEOPLE WHO TALKED ABOUT IT AT THE TIME OF ITS ENACTMENT IN 2024 SAID THAT THERE WERE MAJOR SECURITY CONCERNS THEY HAD BEEN BRIEFED ON PRIVATELY, THAT EVIDENCE HAS NOT BEEN MADE PUBLIC. WHILE I AGREE THAT NATIONAL SECURITY IS IMPORTANT, I THINK THAT BANNING A SOCIAL MEDIA PLATFORM WHERE MILLIONS OF PEOPLE EXCHANGE CONTENT AND IDEAS -- THAT EVIDENCE COULD BE PUBLIC. I DID SIGN ON TO AN AMICUS
BRIEF THAT THE D.C. CIRCUIT AND THE SUPREME COURT. WE ARGUED THAT THE LAW REALLY CREATES SOME FUNDAMENTAL ENFORCEMENT PROBLEMS THAT I DON'T THINK ARE SUPPORTED BY THE SUPREME COURT PRECEDENT. OF COURSE, WE WILL HAVE TO SEE WHAT THE COURT ITSELF SAYS IN A FEW WEEKS. TIM: THANK YOU FOR JOINING US. NOW, A POTENTIAL TIKTOK VAN
THAT WOULD ALSO PAVE THE WAY FOR YOUTUBE SHORTS TO FILL AN ENTERTAINMENT VOID. ENTERTAINMENT AND THE ONLINE ADVERTISING THAT COMES WITH IT. LET'S BRING IN THE FOUNDER AND CEO OF AN E-COMMERCE PLATFORM FOR MULTICHANNEL BRANDS.
YOU HAVE SOME INCREDIBLE DATA ON YOUR PLATFORM ABOUT WHERE THE ADVERTISING MONEY IS LEAVING TO GO TO TIKTOK. START THERE FOR CONTEXT. WHO IS LOSING MONEY AS A RESULT OF TIKTOK'S GROWING POPULARITY? >> MY COMPANY WORKS WITH OVER 2000 OF THE BIGGEST BRANDS IN THE WORLD AND WE HAVE SEEN A 200% YEAR-OVER-YEAR GROWTH. AT THE SAME TIME, WE HAVE SEEN A 65% DECLINE IN ALPHABET.
ALPHABET FOR US IS PAID SEARCH, YOUTUBE, AND EVERYONE ELSE IS MENIAL COMPARED TO THIS. IF A TIKTOK BAN WERE TO OCCUR, YOU CAN BELIEVE THAT ALPHABET IS GOING TO SEE BIG GAINS IN BRAND ADVERTISING TRAFFIC. KATIE: IT IS INTERESTING. I'M SPEAKING OF PERSONAL EXPERIENCE WHEN I TALK ABOUT TIKTOK SHOP. I USED IT FOR HOLIDAY SHOPPING, WHICH I WAS NOT EXPECTING TO DO. BEING BANNED WOULD
THEORETICALLY BE A BENEFIT FOR YOUTUBE SHORTS, FORT META REELS. BUT WHEN IT COMES TO THE ACTUAL E-COMMERCE, DO THEY HAVE THE SAME INFRASTRUCTURE AND EASE OF USE AS YOU HAVE ON A TIKTOK SHOP? >> IT IS INTERESTING. TIKTOK HAS THE POWER OF TELEVISION WITH THE BACKBONE OF DIRECT RESPONSE ADVERTISING, SO YOU CAN BUILD BRANDS AND DRIVE CONVERSION. THAT BEING SAID, WHEN IT COMES TO BOTTOM OF THE FUNNEL I WANT TO DRIVE SALES ADVERTISING, THE BEST PLACES TO DO IT TODAY STILL ARE ALPHABET, MEANING PAID SEARCH, AND META. IF THIS WERE TO HAPPEN, I STILL BELIEVE YOU SEE A MASSIVE SHIFT ACT ALPHABET, A LITTLE BIT BACK TO META. TIKTOK HAS BECOME THE FOURTH BIGGEST MARKETPLACE IN THE U.S., SO WHO IS GOING TO GAIN FROM MARKETPLACE SALES?
IT IS AMAZON, WALMART, EBAY, TAINO. THERE ARE A LOT OF COMPANIES TO GAIN IN THIS DISRUPTIVE SHIFT IF A TIKTOK BAN WERE TO OCCUR. TIM: WHAT SHOULD COMPANIES THAT ARE CLIENTS OF YOURS PREPARED -- DO TO PREPARE FOR A POSSIBLE BAND? >> I BELIEVE A BAN IS GOING TO BE DELAYED. THIS IS A HOT OPPORTUNITY FOR THE SUPREME COURT. BUT IN TERMS OF CUSTOMERS, AND WORKING WITH THE BIGGEST BRANDS IN THE WORLD. THEY ARE USED TO THIS.
WHEN ELON MUSK TOOK CONTROL OF TWITTER, SAW X TRAFFIC GO TO ZERO. THEY JUST REALLOCATED SPEND OVERNIGHT. IT IS NOT THE BIG BRANDS TO WORRY ABOUT. IT IS SMALL AND MEDIUM BUSINESSES THAT ARE HEAVILY DEPENDENT ON TIKTOK, AND THE CREATORS. SOME PEOPLE RELY 100% ON TIKTOK FOR THEIR INCOME. BIG BRANDS WILL BE RESILIENT.
SMALL BUSINESSES ARE GOING TO EXPERIENCE TOUGH TIMES. KATIE: YOU MENTION SOME OF THE BEST NET -- BENEFICIARIES -- AMAZON, ALPHABET. WHAT ABOUT ETSY, EBAY, SOME OF THE MARKETPLACES THAT HAVE BEEN LEFT BEHIND? >> THERE WILL BE A SHIFT BACK TO SEEING SALES IN PLACES LIKE EBAY, ETSY, AND TEEMU. BUT WALMART AND AMAZON ARE HUGE PLAYERS NOW. THEY WILL SEE GAINS. KATIE: REALLY APPRECIATE YOU TAKING THE TRIP TO NEW YORK. AND THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. I BELIEVE WE WILL BOTH BE BACK
TOMORROW. TIM: IF THEY WILL HAVE US. YOU CAN FIND OUR PODCAST ONLINE AND ON THE TERMINAL. THIS IS BLOOMBERG. ♪
2025-01-04 00:32
