1 00:00:00,120 --> 00:00:10,120 Speaker 1: Bloomberg Audio Studios, podcasts, radio news. 2 00:00:08,640 --> 00:00:12,400 Speaker 2: From Marhard We're Innovation, Money and Power Collie in. 3 00:00:12,440 --> 00:00:17,480 Speaker 1: Silicon Valley, Nbon. This is Bloomberg Technology with Caroline. 4 00:00:17,040 --> 00:00:18,520 Speaker 3: Hyde and Ed luved Love. 5 00:00:32,520 --> 00:00:35,800 Speaker 4: From Bloomberg's London headquarters in San Francisco. This is Bloomberg 6 00:00:35,840 --> 00:00:39,080 Speaker 4: Technology coming up in the next hour. Markets entering uncharted 7 00:00:39,159 --> 00:00:42,560 Speaker 4: territory as President Biden drops out and passes the baton 8 00:00:42,720 --> 00:00:45,400 Speaker 4: to Kamala Harris, who in tech will support her and 9 00:00:45,400 --> 00:00:47,280 Speaker 4: what it means for companies and crypto. 10 00:00:47,720 --> 00:00:51,080 Speaker 3: Blushares of CrowdStrike plummet again is analyst Sandy alarm after 11 00:00:51,159 --> 00:00:54,440 Speaker 3: last week's widespread outages and gearing up. 12 00:00:54,400 --> 00:00:57,080 Speaker 4: For big tech results Tesla, Alphabet and more prepared to 13 00:00:57,120 --> 00:01:00,120 Speaker 4: kick off earning season for the Magnificent seven. 14 00:01:00,480 --> 00:01:01,960 Speaker 5: Vers As checking on these marks, Ed. 15 00:01:02,280 --> 00:01:05,160 Speaker 4: We are having a much better day than we did 16 00:01:05,480 --> 00:01:08,280 Speaker 4: from last week. We are up the most since June, 17 00:01:08,400 --> 00:01:10,399 Speaker 4: in fact, so more than a month that we've seen 18 00:01:10,440 --> 00:01:12,720 Speaker 4: such outperformance on the NASDAT one point three percent high 19 00:01:12,800 --> 00:01:15,840 Speaker 4: after the worst week since April last week. But we 20 00:01:15,920 --> 00:01:18,360 Speaker 4: have to hone in really on the market impact of 21 00:01:18,400 --> 00:01:19,440 Speaker 4: the news over the weekend. 22 00:01:20,760 --> 00:01:23,120 Speaker 3: Okay, let's get to the outlook for the twenty twenty 23 00:01:23,200 --> 00:01:26,200 Speaker 3: four presidential election. It took a turn this weekend as 24 00:01:26,240 --> 00:01:30,600 Speaker 3: Biden announced his exit from the race, endorsing Vice President 25 00:01:30,640 --> 00:01:34,360 Speaker 3: Kamala Harris to be the Democratic nominee. Bluembost Katie Lyons 26 00:01:34,440 --> 00:01:36,480 Speaker 3: is in Washington, d C. I think the most logical 27 00:01:36,560 --> 00:01:41,400 Speaker 3: question to ask is what happens next, because President Biden 28 00:01:41,520 --> 00:01:46,360 Speaker 3: endorsing Vice President Kamala Harris is not definitive necessarily, though 29 00:01:46,520 --> 00:01:47,840 Speaker 3: it was an important moment. 30 00:01:49,440 --> 00:01:52,520 Speaker 6: It certainly was, and especially considering that it was followed 31 00:01:52,520 --> 00:01:55,320 Speaker 6: by the endorsements of many other Democratic leaders to be 32 00:01:55,360 --> 00:01:57,960 Speaker 6: a former President Bill Clinton and his wife Hillary Clinton, 33 00:01:58,000 --> 00:02:01,760 Speaker 6: members of the House, in Senate, even key governors that 34 00:02:01,920 --> 00:02:04,600 Speaker 6: were seen to have been potential other contenders for the 35 00:02:04,640 --> 00:02:07,680 Speaker 6: nomination aside from Harris, have now come out and endorsed. 36 00:02:07,320 --> 00:02:08,359 Speaker 5: Her, including today JB. 37 00:02:08,440 --> 00:02:11,680 Speaker 6: Pritsker, the governor in Illinois, or Wes Moore, the governor 38 00:02:11,720 --> 00:02:13,840 Speaker 6: of Maryland. That is in addition to the number that 39 00:02:13,880 --> 00:02:16,120 Speaker 6: we saw come out in support of Harris in the 40 00:02:16,120 --> 00:02:19,760 Speaker 6: immediate aftermath of Biden's announcement in the last twenty four hours. 41 00:02:19,800 --> 00:02:21,440 Speaker 6: The other thing that we should note is that she 42 00:02:21,520 --> 00:02:24,080 Speaker 6: does have a money advantage. Not only does she have 43 00:02:24,160 --> 00:02:26,400 Speaker 6: access to the hundreds of millions of dollars in what 44 00:02:26,560 --> 00:02:29,440 Speaker 6: was the Biden Harris campaign war chest, something that other 45 00:02:29,520 --> 00:02:33,040 Speaker 6: candidates would not have the same accessibility to. We also 46 00:02:33,200 --> 00:02:35,600 Speaker 6: saw in the seven hours in the aftermath of her 47 00:02:35,639 --> 00:02:38,560 Speaker 6: announcing that she does intend to, in her words, earn 48 00:02:38,680 --> 00:02:42,760 Speaker 6: and win the Democratic nomination, we saw fifty million dollars 49 00:02:42,760 --> 00:02:46,320 Speaker 6: in grassroots funding raised, the best day ever for Act Blue, 50 00:02:46,320 --> 00:02:49,840 Speaker 6: which is a key Democratic funding aggregator. So certainly it 51 00:02:49,840 --> 00:02:51,960 Speaker 6: does seem that the party is very much getting in 52 00:02:52,000 --> 00:02:54,640 Speaker 6: line behind Harris. But Edgar absolutely right. Nothing is a 53 00:02:54,680 --> 00:02:56,280 Speaker 6: done deal yet. We still have to get to that 54 00:02:56,360 --> 00:02:59,680 Speaker 6: convention which begins four weeks from today in Chicago on 55 00:02:59,680 --> 00:03:02,160 Speaker 6: odds nineteenth, where the delegates are going to have to 56 00:03:02,200 --> 00:03:04,560 Speaker 6: decide who they're casting a vote for, knowing ninety nine 57 00:03:04,600 --> 00:03:07,560 Speaker 6: percent of them were pledged for Joe Biden, who is 58 00:03:07,560 --> 00:03:08,799 Speaker 6: no longer seeking reelection. 59 00:03:09,919 --> 00:03:12,920 Speaker 4: Important screen that we're looking at right now, Kaylee Reid Hoffman, 60 00:03:13,200 --> 00:03:17,440 Speaker 4: key person in technology, is one of the key Democratic donors. 61 00:03:18,280 --> 00:03:21,240 Speaker 4: Will this ultimately galvanized to think some of those that 62 00:03:21,280 --> 00:03:24,119 Speaker 4: we see in our community and technology and what will 63 00:03:24,120 --> 00:03:26,080 Speaker 4: they be looking for in any way in a change 64 00:03:26,080 --> 00:03:28,240 Speaker 4: in direction of policy, or is it more of the 65 00:03:28,280 --> 00:03:29,440 Speaker 4: same when it comes to Biden. 66 00:03:30,760 --> 00:03:33,079 Speaker 6: Well, certainly, Reid Hoffman was one of the first yesterday 67 00:03:33,080 --> 00:03:34,920 Speaker 6: in the aftermath of this announcement to come out and 68 00:03:35,000 --> 00:03:38,720 Speaker 6: endorse Kamala Harris. Other big funders like George Soris have 69 00:03:38,800 --> 00:03:41,320 Speaker 6: also come out for her, but notably, a number of 70 00:03:41,400 --> 00:03:44,160 Speaker 6: donors have suggested to Bloomberg that they don't necessarily want 71 00:03:44,160 --> 00:03:46,120 Speaker 6: this to be a coronation, that they want some kind 72 00:03:46,160 --> 00:03:48,280 Speaker 6: of process to play out for Harris to actually earn 73 00:03:48,320 --> 00:03:50,640 Speaker 6: the nomination or give someone else a chance to and 74 00:03:50,680 --> 00:03:55,000 Speaker 6: what could theoretically be a contested election in terms of policy, 75 00:03:55,040 --> 00:03:56,960 Speaker 6: that is really what Kamala Harris is going to have 76 00:03:57,000 --> 00:03:59,200 Speaker 6: to define for herself. We will hear from her for 77 00:03:59,280 --> 00:04:01,840 Speaker 6: the first time to the cameras since all of this 78 00:04:01,920 --> 00:04:04,680 Speaker 6: went down yesterday at eleven thirty am Eastern time. We'll 79 00:04:04,720 --> 00:04:07,240 Speaker 6: she'll be speaking at an NCAA Sports Day event at 80 00:04:07,240 --> 00:04:09,720 Speaker 6: the White House. So those remarks just about half an 81 00:04:09,720 --> 00:04:11,600 Speaker 6: hour from now, and it's going to be about the 82 00:04:11,640 --> 00:04:14,200 Speaker 6: ways in which she tries to differentiate herself from Joe 83 00:04:14,240 --> 00:04:16,960 Speaker 6: Biden expressed that perhaps in not all areas there will 84 00:04:17,000 --> 00:04:20,400 Speaker 6: be exact policy continuity, given that that is an attack 85 00:04:20,400 --> 00:04:23,400 Speaker 6: line we're already seeing from the Republican Party suggesting that 86 00:04:23,520 --> 00:04:27,000 Speaker 6: essentially a Kamala Harris presidency would look very much like 87 00:04:27,000 --> 00:04:29,520 Speaker 6: a Joe Biden presidency and that for everything. Republicans have 88 00:04:29,560 --> 00:04:33,080 Speaker 6: faulted the Biden administration for their suggesting that Kamala Harris 89 00:04:33,440 --> 00:04:36,119 Speaker 6: not only was there for it, but enabled President Biden 90 00:04:36,200 --> 00:04:38,159 Speaker 6: to take all of that action. So it's going to 91 00:04:38,160 --> 00:04:40,560 Speaker 6: be a question of how Kamala Harris may decide to 92 00:04:40,600 --> 00:04:44,280 Speaker 6: differentiate herself from the man that she has served as 93 00:04:44,400 --> 00:04:46,400 Speaker 6: vice president for the last three and a half years. 94 00:04:46,400 --> 00:04:48,400 Speaker 6: And when it comes to technology, it's also worth pointing 95 00:04:48,400 --> 00:04:50,799 Speaker 6: out that it's not just Democrats that need to be watched. 96 00:04:50,880 --> 00:04:53,640 Speaker 6: Jade Vance, the vice presidential nominee on the Republican side, 97 00:04:53,680 --> 00:04:56,960 Speaker 6: have been highly skeptical of big tech. In particular, he 98 00:04:57,000 --> 00:05:00,840 Speaker 6: has been supportive of competition in anti trust efforts under 99 00:05:00,839 --> 00:05:04,039 Speaker 6: the Biden administration, including the praise he's had for FTC 100 00:05:04,240 --> 00:05:06,240 Speaker 6: Chair Lena Kahan, And of course there may be some 101 00:05:06,320 --> 00:05:09,440 Speaker 6: alignment with the Democrats in those areas. 102 00:05:10,160 --> 00:05:13,640 Speaker 3: Bloomber's Calie lines, thank you, let's get reaction from Silicon 103 00:05:13,720 --> 00:05:16,840 Speaker 3: Valley and the Democratic Party. Steve Wesley is the CEO 104 00:05:16,920 --> 00:05:19,920 Speaker 3: of the Wesley Group, but also a former California State 105 00:05:20,000 --> 00:05:22,960 Speaker 3: Controller CFO and in two thousand and eight co chaired 106 00:05:23,120 --> 00:05:26,280 Speaker 3: Barack Obama's campaign in the state of California and as 107 00:05:26,320 --> 00:05:28,920 Speaker 3: back to Biden. He's also been a delegate at eight 108 00:05:29,440 --> 00:05:33,719 Speaker 3: Democratic conventions. He joins us now from Menlo Park, California. Steve, 109 00:05:33,720 --> 00:05:35,520 Speaker 3: good morning to you. 110 00:05:35,520 --> 00:05:36,400 Speaker 7: Your reaction in. 111 00:05:36,360 --> 00:05:43,080 Speaker 3: The first instance to President Biden endorsing Kamala Harris as nominee. 112 00:05:44,560 --> 00:05:46,920 Speaker 8: Well, first, you've got to give Joe Biden credit. 113 00:05:47,160 --> 00:05:49,839 Speaker 9: It's an extraordinary act of selflessness for him to step 114 00:05:49,880 --> 00:05:52,440 Speaker 9: down having won the nomination and to do what he 115 00:05:52,520 --> 00:05:57,360 Speaker 9: thinks is right for the country, to basically say I'm 116 00:05:57,360 --> 00:05:59,240 Speaker 9: going to step down. It's time to bring in a 117 00:05:59,279 --> 00:06:02,839 Speaker 9: new generation and to throw things open. Now he's endorsed 118 00:06:02,880 --> 00:06:05,600 Speaker 9: Kamala Harris, but there's still going to be a process 119 00:06:05,680 --> 00:06:07,839 Speaker 9: and what would see now, I think is quite exciting. 120 00:06:08,000 --> 00:06:11,360 Speaker 9: Everybody in the world is watching what's going to happen next. 121 00:06:11,440 --> 00:06:12,200 Speaker 8: There's going to be some. 122 00:06:12,160 --> 00:06:14,599 Speaker 9: New blood in the Democratic Party. Is it going to 123 00:06:14,600 --> 00:06:17,240 Speaker 9: be Kamala Harris, who's terrific or is it going to 124 00:06:17,279 --> 00:06:19,599 Speaker 9: be someone else? And I think there's going to be 125 00:06:19,640 --> 00:06:22,440 Speaker 9: at least one, maybe two other people that come into 126 00:06:22,520 --> 00:06:25,240 Speaker 9: the race. I think it's going to add a lot 127 00:06:25,279 --> 00:06:26,839 Speaker 9: of excitement to the race. I think it's going to 128 00:06:26,839 --> 00:06:30,560 Speaker 9: mobilize Democratic voters. Everybody's going to be tuning into the convention. 129 00:06:31,640 --> 00:06:32,760 Speaker 8: It's just what she wants. 130 00:06:32,839 --> 00:06:36,360 Speaker 3: If you're a part Steve, you are in a large 131 00:06:36,360 --> 00:06:41,680 Speaker 3: group of Silicon Valley or technologists, DEM donors and backers 132 00:06:41,920 --> 00:06:44,800 Speaker 3: who are doing the math, and you're trying to calculate 133 00:06:45,160 --> 00:06:47,440 Speaker 3: who can win against Trump vance. 134 00:06:48,160 --> 00:06:49,880 Speaker 7: Do you think that Kamala Harris can win. 135 00:06:51,120 --> 00:06:51,760 Speaker 8: Absolutely. 136 00:06:52,120 --> 00:06:57,560 Speaker 10: She's a known entity, she's got high voter ID, she's 137 00:06:57,600 --> 00:07:01,440 Speaker 10: an articulate presenter, a former prosecute she will do very 138 00:07:01,480 --> 00:07:03,720 Speaker 10: well in the debate, and she fire her she's all 139 00:07:03,760 --> 00:07:04,839 Speaker 10: over high energy. 140 00:07:05,160 --> 00:07:07,320 Speaker 8: But there are other candidates like that too. 141 00:07:07,360 --> 00:07:10,440 Speaker 9: I think the one who is most mentioned, Discretion Whitmer 142 00:07:10,520 --> 00:07:14,240 Speaker 9: of Michigan, will see I'm guessing who knows what. I'm 143 00:07:14,240 --> 00:07:17,040 Speaker 9: guessing there'll be at least one other candidate in the race. 144 00:07:17,400 --> 00:07:19,720 Speaker 9: And I think it's just what the Democratic Party needs 145 00:07:19,800 --> 00:07:22,800 Speaker 9: is to eject some new blood to run against a 146 00:07:22,880 --> 00:07:25,840 Speaker 9: seventy eight year old candidate who seems to be fuzzy 147 00:07:25,920 --> 00:07:27,600 Speaker 9: on a lot of the issues. I think it's a 148 00:07:27,600 --> 00:07:30,320 Speaker 9: big opportunity for the Democrats, a lot of energy. 149 00:07:30,440 --> 00:07:33,480 Speaker 4: Everybody's going to be watching, Steve, what about the opportunity 150 00:07:33,960 --> 00:07:37,200 Speaker 4: to finance the Democrats right now? How much do you 151 00:07:37,240 --> 00:07:39,880 Speaker 4: think this is going to inspire well more of Silicon 152 00:07:39,960 --> 00:07:42,520 Speaker 4: Valley to start speaking out about who they endorse them 153 00:07:42,560 --> 00:07:43,200 Speaker 4: with their money. 154 00:07:44,200 --> 00:07:46,840 Speaker 9: Well, look, first, there's going to be enormous amounts of 155 00:07:46,840 --> 00:07:49,280 Speaker 9: money that come in on both sides. In terms of 156 00:07:49,520 --> 00:07:53,480 Speaker 9: Silicon Valley, I can just tell you right now, Silicon 157 00:07:53,560 --> 00:07:56,200 Speaker 9: Valley has gone roughly eighty twenty for Democrats over the 158 00:07:56,240 --> 00:07:58,280 Speaker 9: past two or three or four elections. 159 00:07:58,320 --> 00:08:00,000 Speaker 8: I think it's going to be the same this time. 160 00:08:00,280 --> 00:08:03,640 Speaker 9: If you look at the current administration's support of the 161 00:08:03,720 --> 00:08:07,680 Speaker 9: Chips Act, the Infrastructure Bill, the Inflation Reduction Act, the 162 00:08:07,760 --> 00:08:10,680 Speaker 9: largest green energy stimulus in the history of the planet, 163 00:08:11,320 --> 00:08:14,840 Speaker 9: Nobody other than by could have gotten this stock market 164 00:08:14,920 --> 00:08:19,000 Speaker 9: historic highs, unemployment historic lows. And if there's one thing 165 00:08:19,040 --> 00:08:22,760 Speaker 9: at Silicon Valum and the business in general, really looks 166 00:08:22,760 --> 00:08:25,960 Speaker 9: for its stability, I think the Democrats have provided that 167 00:08:26,080 --> 00:08:29,520 Speaker 9: I don't think anybody could say that that is mister 168 00:08:29,560 --> 00:08:30,240 Speaker 9: Trump's strength. 169 00:08:30,280 --> 00:08:31,560 Speaker 8: So we'll see how that involves. 170 00:08:31,560 --> 00:08:34,120 Speaker 9: But I expect Solicon Valley to go strongly for the Democrat, 171 00:08:34,320 --> 00:08:35,040 Speaker 9: whoever it is. 172 00:08:36,559 --> 00:08:39,440 Speaker 4: Steve thus Far a man you know well, having been 173 00:08:39,960 --> 00:08:42,959 Speaker 4: on the board of Tesla, having supported. 174 00:08:42,440 --> 00:08:44,080 Speaker 5: El on Us companies in the past. 175 00:08:44,400 --> 00:08:48,160 Speaker 4: He's given forty five million a month, we understand to 176 00:08:48,200 --> 00:08:50,760 Speaker 4: a pack that supports Trump. Whereas we look to the 177 00:08:50,760 --> 00:08:53,439 Speaker 4: previous full screen and read Hoffman was the biggest donor 178 00:08:53,440 --> 00:08:56,040 Speaker 4: previously with a twenty five million dollar check. How do 179 00:08:56,080 --> 00:08:58,040 Speaker 4: you see those sorts of numbers adding up. Will there 180 00:08:58,080 --> 00:09:00,360 Speaker 4: be someone who can match that sort of huge, huge 181 00:09:00,400 --> 00:09:03,040 Speaker 4: gift that we see coming from the world's wealthiest man. 182 00:09:04,720 --> 00:09:08,000 Speaker 9: Absolutely, Look, there's going to be huge amounts of money 183 00:09:08,240 --> 00:09:10,480 Speaker 9: that come in on both sides. But there are a 184 00:09:10,480 --> 00:09:15,080 Speaker 9: lot of people Ms Gains and Bezos, many of the 185 00:09:15,080 --> 00:09:18,480 Speaker 9: wealthiest people in the world are strong Democrats, and I 186 00:09:18,520 --> 00:09:21,240 Speaker 9: think you're going to see equal many match, if not 187 00:09:21,360 --> 00:09:25,000 Speaker 9: more coming in on the Democratic side. And again with 188 00:09:25,160 --> 00:09:28,800 Speaker 9: the Democrats are provided over the last four years, historically 189 00:09:28,880 --> 00:09:33,559 Speaker 9: high stock market race, historically low unemployment. I mean, this 190 00:09:33,600 --> 00:09:36,280 Speaker 9: is a good story to campaign on. And if you 191 00:09:36,320 --> 00:09:40,680 Speaker 9: can wrap all that together with a strong new candidate, 192 00:09:40,720 --> 00:09:43,360 Speaker 9: whether it's Tamala Harris or someone else, I think that's 193 00:09:43,400 --> 00:09:45,240 Speaker 9: a winning package for the Democratic Party. 194 00:09:46,960 --> 00:09:47,280 Speaker 7: Steve. 195 00:09:48,040 --> 00:09:53,640 Speaker 3: A criticism of President Biden's term in office has been 196 00:09:53,679 --> 00:09:58,000 Speaker 3: his attitude toward and lack of engagement with Elon Musk 197 00:09:58,679 --> 00:10:02,079 Speaker 3: in the context of electric vehicles and space as well. 198 00:10:02,640 --> 00:10:05,720 Speaker 3: Do you expect Kamala Harris or whoever the Democratic nominee 199 00:10:05,760 --> 00:10:08,439 Speaker 3: ends up being to change policy there. 200 00:10:10,400 --> 00:10:11,920 Speaker 8: Not for a moment. 201 00:10:12,160 --> 00:10:15,560 Speaker 9: I think the Biden administration has been a champion not 202 00:10:15,600 --> 00:10:20,120 Speaker 9: only for green energy, but to stimulate this boom and 203 00:10:20,200 --> 00:10:23,360 Speaker 9: electric vehicles. And the great news is, not only are 204 00:10:23,360 --> 00:10:27,400 Speaker 9: electric vehicles becoming cheaper every year, they're creating huge jobs. 205 00:10:27,440 --> 00:10:30,760 Speaker 9: Battery plants ev plants being built around the country in 206 00:10:30,840 --> 00:10:33,959 Speaker 9: blue and red stags. But for the first time this year, 207 00:10:34,120 --> 00:10:37,640 Speaker 9: you're going to see evs, a parody for control of 208 00:10:37,679 --> 00:10:41,520 Speaker 9: combustion engine vehicles. This is something that's wildly popular, especially 209 00:10:41,559 --> 00:10:44,640 Speaker 9: for young people. Biden administration and I think any of 210 00:10:44,679 --> 00:10:47,199 Speaker 9: the Democratic nominees are going to be strongly in favor 211 00:10:47,240 --> 00:10:50,880 Speaker 9: of the new green economy and the fifteen million jobs 212 00:10:50,880 --> 00:10:53,480 Speaker 9: that the administration is creator over the last four years. 213 00:10:53,760 --> 00:10:56,160 Speaker 9: I think Trump may be the odd guy out to 214 00:10:56,280 --> 00:11:02,000 Speaker 9: be holding on embracing introlock combustion engine vehicles at a 215 00:11:02,080 --> 00:11:04,160 Speaker 9: climb when they're less popular than. 216 00:11:04,080 --> 00:11:05,199 Speaker 8: They have been in the past. 217 00:11:05,880 --> 00:11:07,800 Speaker 5: Steve, great to catch up with you. 218 00:11:07,960 --> 00:11:10,120 Speaker 4: Thank you so much for your time today, Steve Wesley, 219 00:11:10,240 --> 00:11:11,840 Speaker 4: CEO of the Wesley Group. 220 00:11:20,320 --> 00:11:21,760 Speaker 7: Let's talk more about CrowdStrike. 221 00:11:21,800 --> 00:11:23,839 Speaker 3: Carro is just pointing out in the session the stock 222 00:11:23,920 --> 00:11:27,880 Speaker 3: down almost eleven percent. It fell eleven percent Friday following 223 00:11:28,400 --> 00:11:32,000 Speaker 3: its botched patch or software update that caused an outage 224 00:11:32,040 --> 00:11:36,599 Speaker 3: impacting eight point five million Microsoft Windows PCs around the world. 225 00:11:37,200 --> 00:11:40,920 Speaker 3: A number of firms downgrading the stock after the outage 226 00:11:41,720 --> 00:11:44,000 Speaker 3: real quick on a two day basis, Caroline, It's a 227 00:11:44,040 --> 00:11:46,320 Speaker 3: stock that's facing its biggest two day drop on record. 228 00:11:46,320 --> 00:11:48,840 Speaker 3: And I think you and I were wondering Friday, how 229 00:11:48,880 --> 00:11:51,720 Speaker 3: does this have legs? How severe is this? And the 230 00:11:51,800 --> 00:11:53,760 Speaker 3: industry is talking about it. Let's get the latest and 231 00:11:53,800 --> 00:11:58,720 Speaker 3: bring in Sanjay Merchandani, CEO of Convolt Cyber Resilient Solutions provider. 232 00:12:00,080 --> 00:12:03,600 Speaker 3: Stock continues to have reaction, Your industry continues to have 233 00:12:03,640 --> 00:12:08,840 Speaker 3: reaction as well. What's the lasting effect of the outage 234 00:12:09,040 --> 00:12:09,360 Speaker 3: we leave. 235 00:12:09,480 --> 00:12:14,160 Speaker 11: You know, we live in an extremely interconnected world right now, 236 00:12:14,320 --> 00:12:17,440 Speaker 11: cloud devices, servers, and. 237 00:12:19,000 --> 00:12:21,280 Speaker 1: Croudstrike is a popular technology. 238 00:12:21,320 --> 00:12:23,800 Speaker 11: We use it as well, and so when something like 239 00:12:23,840 --> 00:12:27,240 Speaker 11: this happens, there is a long tail and it. 240 00:12:27,160 --> 00:12:29,319 Speaker 1: Has to be you know, it has to be cleaned up. 241 00:12:29,960 --> 00:12:34,160 Speaker 11: The lessons here and the fix for the most part 242 00:12:34,200 --> 00:12:37,440 Speaker 11: was fairly manual, so it took time. It wasn't a 243 00:12:37,440 --> 00:12:40,679 Speaker 11: complicated fix, but it took time, and I think we're 244 00:12:40,720 --> 00:12:41,400 Speaker 11: coming out of it. 245 00:12:41,720 --> 00:12:43,520 Speaker 1: But there's a lot of learnings that we're also getting 246 00:12:43,520 --> 00:12:44,320 Speaker 1: out of this process. 247 00:12:45,640 --> 00:12:48,480 Speaker 4: Sandra, did you have any cause for concern ahead of 248 00:12:48,480 --> 00:12:52,280 Speaker 4: this about prior updates that crowd strike could run? Then 249 00:12:52,320 --> 00:12:55,240 Speaker 4: there might have been anything that would signal that such 250 00:12:55,240 --> 00:12:56,120 Speaker 4: an event could occur. 251 00:12:57,040 --> 00:12:59,200 Speaker 11: They're a security company, you trust, You tend to trust 252 00:12:59,240 --> 00:13:02,560 Speaker 11: security company and the you know, and so there was 253 00:13:02,600 --> 00:13:05,240 Speaker 11: no there was nothing before this specifically about crowd strike 254 00:13:05,320 --> 00:13:09,840 Speaker 11: that would be of concern. What is always of concern 255 00:13:09,920 --> 00:13:12,040 Speaker 11: when you have a large number of patches and a 256 00:13:12,120 --> 00:13:16,199 Speaker 11: large number of connected systems and dependencies is your ability 257 00:13:16,240 --> 00:13:21,600 Speaker 11: to really stage a patch test it in your particular environment. 258 00:13:21,640 --> 00:13:24,440 Speaker 11: Because no two environments are the same and then once 259 00:13:24,480 --> 00:13:27,000 Speaker 11: you know that you've got it working where you need it, 260 00:13:27,640 --> 00:13:30,120 Speaker 11: to push it out. Now, with security, the window that 261 00:13:30,200 --> 00:13:34,040 Speaker 11: you have between a critical patch and your ability to deploy. 262 00:13:33,760 --> 00:13:35,959 Speaker 1: It is very, very small, and so you tend to 263 00:13:36,000 --> 00:13:37,200 Speaker 1: trust more and push faster. 264 00:13:39,080 --> 00:13:43,800 Speaker 4: We have heard from across industries, particularly from the airline industry, 265 00:13:43,880 --> 00:13:47,280 Speaker 4: the Delta CEO coming out and apologizing because still today 266 00:13:47,679 --> 00:13:51,440 Speaker 4: there are issues that are affecting their ability to serve customers. Sanjay, 267 00:13:51,559 --> 00:13:54,880 Speaker 4: when it comes to business continuity, what could a company 268 00:13:54,920 --> 00:13:58,040 Speaker 4: like Delta have done to prevent the fallout that we 269 00:13:58,160 --> 00:14:01,400 Speaker 4: now see was two thousand and five h plus cancelations 270 00:14:01,400 --> 00:14:02,000 Speaker 4: on Saturday. 271 00:14:03,120 --> 00:14:05,960 Speaker 1: You know, Caroline, it's it's about resilience. 272 00:14:06,120 --> 00:14:08,440 Speaker 11: And people use the word resilience instead of a broad way, 273 00:14:08,480 --> 00:14:11,120 Speaker 11: But for us, it's about business's ability to get back 274 00:14:11,160 --> 00:14:13,920 Speaker 11: to life, regardless of the catastrophic event. 275 00:14:14,000 --> 00:14:16,560 Speaker 1: It could have been human error in this case, possibly 276 00:14:16,679 --> 00:14:17,280 Speaker 1: human error. 277 00:14:17,679 --> 00:14:21,920 Speaker 11: It could be malicious, it could be internal external malicious, 278 00:14:21,960 --> 00:14:25,640 Speaker 11: it could be a natural disaster. So what we do 279 00:14:25,760 --> 00:14:28,640 Speaker 11: is help our customers build a capability, build a platform, 280 00:14:28,680 --> 00:14:32,480 Speaker 11: build a muscle through repeated testing and scale so that 281 00:14:32,680 --> 00:14:33,760 Speaker 11: in the event. 282 00:14:33,640 --> 00:14:35,880 Speaker 1: That something goes sideways. 283 00:14:37,000 --> 00:14:39,560 Speaker 11: You've tried and tested the ability for your business to 284 00:14:39,600 --> 00:14:42,840 Speaker 11: come back to life. And I think, I think everything 285 00:14:42,840 --> 00:14:45,920 Speaker 11: we've got going on as enterprises, not enough time is 286 00:14:45,920 --> 00:14:51,000 Speaker 11: spent on practical capabilities of resilience and more. Sort of 287 00:14:51,040 --> 00:14:55,520 Speaker 11: you tend to lean on on the academic thought process. Yes, 288 00:14:55,560 --> 00:14:58,200 Speaker 11: we've got this list, we've done this, we've we've written 289 00:14:58,240 --> 00:15:01,000 Speaker 11: this up. But how much of your enterprise have you 290 00:15:01,240 --> 00:15:05,000 Speaker 11: actually tested with a deep degree of confidence? 291 00:15:05,120 --> 00:15:08,040 Speaker 1: And that's what we try to enable our customers to do. 292 00:15:09,080 --> 00:15:11,840 Speaker 3: Sanjay I wrote in my Tech Daily column this morning 293 00:15:11,840 --> 00:15:14,720 Speaker 3: about concentration risk, the idea that so many corporates and 294 00:15:14,760 --> 00:15:19,960 Speaker 3: government entities relied on CrowdStrike, but also that eight point 295 00:15:19,960 --> 00:15:23,080 Speaker 3: five million computers it was the most critical of computers 296 00:15:23,080 --> 00:15:26,520 Speaker 3: that were impacted. How could have that been mitigated or prevented? 297 00:15:28,560 --> 00:15:29,640 Speaker 1: Think of it as a warning shot. 298 00:15:29,680 --> 00:15:31,800 Speaker 11: We've all been sort of sitting back and saying, Okay, 299 00:15:31,880 --> 00:15:33,960 Speaker 11: so what does my fleet look like, what do my 300 00:15:34,000 --> 00:15:34,880 Speaker 11: servers look like? 301 00:15:34,960 --> 00:15:37,680 Speaker 1: What does you know? What are my users working with? 302 00:15:38,000 --> 00:15:40,520 Speaker 11: And it almost makes you take a step back and say, 303 00:15:40,520 --> 00:15:43,240 Speaker 11: we need to have a very calculated mix so that 304 00:15:43,280 --> 00:15:46,840 Speaker 11: you're not over reliant or over dependent on any one environment, 305 00:15:47,280 --> 00:15:49,040 Speaker 11: because that's part of resilience. 306 00:15:49,240 --> 00:15:51,200 Speaker 1: You know, that is exactly part of resilience. 307 00:15:51,240 --> 00:15:54,640 Speaker 11: And I think for everyone this weekend's been a bit 308 00:15:54,680 --> 00:15:56,960 Speaker 11: of a wake up call to say, Okay, where am 309 00:15:56,960 --> 00:16:01,360 Speaker 11: I overdependent or don't have enough control or it could 310 00:16:01,400 --> 00:16:04,560 Speaker 11: be more resilient. And I think that you know, for 311 00:16:05,520 --> 00:16:09,840 Speaker 11: all the negative outcome of something like this, the positive takeaway, 312 00:16:09,840 --> 00:16:12,240 Speaker 11: if you can is let's go back and make sure 313 00:16:12,240 --> 00:16:15,880 Speaker 11: we're very calculated about how we build out the enterprise landscape. 314 00:16:16,560 --> 00:16:17,600 Speaker 1: The av a man. 315 00:16:17,520 --> 00:16:20,960 Speaker 4: List analyst getting more calculated on what their price targets 316 00:16:20,960 --> 00:16:22,840 Speaker 4: are in the company in Sanjay Merchant and is saying 317 00:16:22,880 --> 00:16:25,360 Speaker 4: getting more calculated or using as well, CEO of Convolt, 318 00:16:25,360 --> 00:16:28,720 Speaker 4: we really appreciate your perspective on CrowdStrike. Coming up, we're 319 00:16:28,760 --> 00:16:31,080 Speaker 4: going to be joined by Michelle Grider, CEO of CRACK 320 00:16:31,160 --> 00:16:34,000 Speaker 4: Institute for Tech Diplomacy over at Purdue for her read 321 00:16:34,120 --> 00:16:34,880 Speaker 4: on the impact of. 322 00:16:34,880 --> 00:16:37,400 Speaker 5: China US relations on the tech sector. 323 00:16:38,360 --> 00:16:41,440 Speaker 4: And I'm also looking as we go to break on 324 00:16:41,480 --> 00:16:42,840 Speaker 4: a share that you need to keep an eye on, 325 00:16:42,880 --> 00:16:45,600 Speaker 4: down some six percent. Verizon comes out with its earnings 326 00:16:45,960 --> 00:16:49,040 Speaker 4: operating revenue missed Animal's estimates a few people basically upgrading 327 00:16:49,040 --> 00:16:52,280 Speaker 4: their wireless equipment. Total operating revenue thirty two point eight billion, 328 00:16:52,360 --> 00:16:55,080 Speaker 4: less than one percent from a year ago, up less 329 00:16:55,080 --> 00:16:56,360 Speaker 4: than one percent from a year ago, and a bit 330 00:16:56,400 --> 00:16:58,960 Speaker 4: of a miss when the market wanted to see some 331 00:16:59,000 --> 00:17:02,400 Speaker 4: week overall growth, asking some actural games in wireless filone customers. 332 00:17:02,400 --> 00:17:13,560 Speaker 5: Though this is Blue Meg technology. 333 00:17:18,720 --> 00:17:21,440 Speaker 3: Take some profit on the AI boom. That's the message 334 00:17:21,440 --> 00:17:24,280 Speaker 3: to investors from Morgan Stanley, who lowered their view on 335 00:17:24,359 --> 00:17:28,120 Speaker 3: Asian and emerging market tech names and cut KEYAI chip 336 00:17:28,240 --> 00:17:29,960 Speaker 3: names like TSMC from. 337 00:17:29,880 --> 00:17:30,680 Speaker 7: Their focus list. 338 00:17:30,800 --> 00:17:33,680 Speaker 3: The call triggered a rough session for tech in Asia, 339 00:17:33,720 --> 00:17:36,480 Speaker 3: trading overnight, top of mind for the firm, tougher US 340 00:17:36,560 --> 00:17:39,160 Speaker 3: curbs on tech sales to China, and a red hot 341 00:17:39,200 --> 00:17:41,760 Speaker 3: AI market that might have got too hot. So the 342 00:17:41,800 --> 00:17:45,000 Speaker 3: first time ms has downgraded the sector since his overweight 343 00:17:45,040 --> 00:17:48,040 Speaker 3: call in October of twenty twenty two. Let's get the 344 00:17:48,040 --> 00:17:49,679 Speaker 3: perspective of Michelle Geider. 345 00:17:49,800 --> 00:17:50,520 Speaker 7: She's the CEO of the. 346 00:17:50,480 --> 00:17:54,800 Speaker 3: Cruck Institute for Tech Depotacy at Purdue, an organization dedicated 347 00:17:55,000 --> 00:18:01,040 Speaker 3: to accelerating the innovation and adoption of trusted technology. Going story, 348 00:18:01,560 --> 00:18:05,159 Speaker 3: but it is not going away. The United States with 349 00:18:05,240 --> 00:18:10,280 Speaker 3: its current administration limiting China's access to key semiconductor technology. 350 00:18:10,560 --> 00:18:14,440 Speaker 3: In the context of China, how long and sustained will 351 00:18:14,440 --> 00:18:16,399 Speaker 3: that policy be things ed? 352 00:18:17,040 --> 00:18:21,000 Speaker 2: This is turned from being at first a Trump administration 353 00:18:21,080 --> 00:18:25,359 Speaker 2: policy toward China to Abide administration policy toward China, and 354 00:18:25,400 --> 00:18:28,240 Speaker 2: it's becoming clear now that this is the American policy 355 00:18:28,320 --> 00:18:31,600 Speaker 2: toward China. There's a lot of bipartisan consensus from the 356 00:18:31,680 --> 00:18:34,439 Speaker 2: US Congress as well, and not to mention many of 357 00:18:34,440 --> 00:18:37,359 Speaker 2: our partners and allies across the world. So there has 358 00:18:37,440 --> 00:18:42,600 Speaker 2: been tremendous volatility and uncertainty with regard to the political election, even. 359 00:18:42,520 --> 00:18:44,560 Speaker 8: Just over the past ten days. 360 00:18:44,840 --> 00:18:46,960 Speaker 2: But if you're a CEO of a tech company, the 361 00:18:47,040 --> 00:18:49,240 Speaker 2: one thing that you can be certain of, the one 362 00:18:49,240 --> 00:18:51,840 Speaker 2: thing that will be stable, is going to be American 363 00:18:51,880 --> 00:18:54,960 Speaker 2: policy toward China when it comes to our own tech 364 00:18:55,040 --> 00:18:57,400 Speaker 2: security and our economic competitiveness. 365 00:18:57,920 --> 00:19:00,399 Speaker 5: Is it the right policy, Michelle. 366 00:19:00,200 --> 00:19:02,480 Speaker 2: Well, let's start with the ultimate end goal, and the 367 00:19:02,520 --> 00:19:04,600 Speaker 2: ultimate end goal is that the United States and our 368 00:19:04,600 --> 00:19:08,960 Speaker 2: partners and allies across the world have to have competitiveness 369 00:19:09,000 --> 00:19:11,960 Speaker 2: and superiority when it comes to technology, because whoever leads 370 00:19:11,960 --> 00:19:15,600 Speaker 2: in technology is going to dictate the values and the 371 00:19:15,640 --> 00:19:20,240 Speaker 2: standards and the regulations that oversee our militaries, our economies, 372 00:19:20,280 --> 00:19:23,480 Speaker 2: the financial system, our culture, and the information space, and 373 00:19:23,520 --> 00:19:25,760 Speaker 2: so the imperatives for the United States and our partners 374 00:19:25,800 --> 00:19:28,359 Speaker 2: and allies to lead in technology. That means we have 375 00:19:28,400 --> 00:19:31,080 Speaker 2: to innovate faster, smarter, and better, and we have to 376 00:19:31,080 --> 00:19:34,360 Speaker 2: make sure that our companies are not contributing to China's 377 00:19:34,400 --> 00:19:38,520 Speaker 2: ability to beat us in technologies like artificial intelligence. 378 00:19:39,960 --> 00:19:44,000 Speaker 3: Michelle Nvidia, for example, is off session highs but up 379 00:19:44,200 --> 00:19:48,080 Speaker 3: significantly this morning. There were reports that it's preparing a 380 00:19:48,119 --> 00:19:51,919 Speaker 3: specific product that would be within the bounds of current restrictions. 381 00:19:52,760 --> 00:19:55,960 Speaker 3: That seems such an interesting policy. How severe do you 382 00:19:56,080 --> 00:19:59,120 Speaker 3: expect the reaction from the administration of the policy sides 383 00:19:59,160 --> 00:20:01,399 Speaker 3: be if corporate it's elect to do that, just to 384 00:20:01,400 --> 00:20:05,000 Speaker 3: adjust their product so that they're within codified rules. 385 00:20:05,080 --> 00:20:07,240 Speaker 2: Like this, this is sort of the new reality that 386 00:20:07,280 --> 00:20:09,520 Speaker 2: we're in here in twenty twenty four and then through 387 00:20:09,560 --> 00:20:13,280 Speaker 2: twenty forty four, which is that companies and governments have 388 00:20:13,359 --> 00:20:17,000 Speaker 2: to be working closely together to ensure that companies are 389 00:20:17,000 --> 00:20:20,520 Speaker 2: able to be competitive and ensure their business success at 390 00:20:20,520 --> 00:20:22,800 Speaker 2: the same time that they're contributing to and not working 391 00:20:22,880 --> 00:20:26,600 Speaker 2: against US and allied national security. That's what tech diplomacy is, 392 00:20:26,640 --> 00:20:28,560 Speaker 2: That's what the CROC Institute is focused on, and it 393 00:20:28,600 --> 00:20:31,600 Speaker 2: really is a new requirement for this contested technological and 394 00:20:31,640 --> 00:20:36,720 Speaker 2: geopolitical space. So we're seeing that push and pull between 395 00:20:36,760 --> 00:20:39,520 Speaker 2: companies and governments, But the long term trajectory of this 396 00:20:40,040 --> 00:20:43,439 Speaker 2: is that companies need to be acting in the national 397 00:20:43,440 --> 00:20:46,200 Speaker 2: security of the United States. There's a way to be competitive, 398 00:20:46,320 --> 00:20:48,520 Speaker 2: there's a way to make money, and there's also a 399 00:20:48,560 --> 00:20:51,320 Speaker 2: way to ensure that we're advancing national security. 400 00:20:51,400 --> 00:20:53,960 Speaker 8: So this is a and scenario, not. 401 00:20:54,040 --> 00:20:55,240 Speaker 1: A one or the other. 402 00:20:56,320 --> 00:21:00,359 Speaker 4: Michelle, you mentioned allies, and much of recent report has 403 00:21:00,400 --> 00:21:02,600 Speaker 4: been focused on how the administration is going to lean 404 00:21:02,640 --> 00:21:06,600 Speaker 4: on the Dutch, the Japanese. How will that differ between 405 00:21:06,720 --> 00:21:10,000 Speaker 4: a Trump versus potential Harris. 406 00:21:10,280 --> 00:21:14,080 Speaker 2: Look In the previous administration, one of the things that 407 00:21:14,080 --> 00:21:16,280 Speaker 2: the founders of the Croak Institute had focused on was 408 00:21:16,280 --> 00:21:19,480 Speaker 2: building a historic clean network to secure five G that 409 00:21:19,560 --> 00:21:23,680 Speaker 2: included sixty countries and two hundred telecommunications companies. 410 00:21:23,280 --> 00:21:25,640 Speaker 7: That worked together across. 411 00:21:25,240 --> 00:21:27,240 Speaker 2: All of our countries in order to secure five G 412 00:21:27,320 --> 00:21:29,480 Speaker 2: and make sure that we are only using trusted vendors 413 00:21:29,600 --> 00:21:32,679 Speaker 2: that ultimately stopped Huawei in its tracks from becoming the 414 00:21:32,720 --> 00:21:35,879 Speaker 2: dominant global five G provider. That has continued in this 415 00:21:35,960 --> 00:21:39,720 Speaker 2: administration and whatever the next administration and into the next 416 00:21:39,720 --> 00:21:43,000 Speaker 2: twenty years. Really the imperative is for the US and 417 00:21:43,000 --> 00:21:43,880 Speaker 2: all of our allies to. 418 00:21:43,800 --> 00:21:44,600 Speaker 8: Be working together. 419 00:21:45,040 --> 00:21:47,040 Speaker 2: And we had talked about chips at the very beginning. 420 00:21:47,080 --> 00:21:50,239 Speaker 2: Here you see a lot of the same trajectory from 421 00:21:50,280 --> 00:21:52,439 Speaker 2: our partners and allies when it comes to chip. The 422 00:21:52,520 --> 00:21:57,600 Speaker 2: EU is focused on government subsidies to advance their chip 423 00:21:57,640 --> 00:22:00,280 Speaker 2: self sufficiency. The same thing with Japan Korea. Many of 424 00:22:00,280 --> 00:22:02,240 Speaker 2: our partners and allies are on the same path. 425 00:22:03,400 --> 00:22:06,320 Speaker 4: Michelle Geider, CEO of the Kark Institute for Tech Diplomacy, 426 00:22:06,320 --> 00:22:09,520 Speaker 4: have heard you. We thank you so much this blombog Techology. 427 00:22:18,600 --> 00:22:21,400 Speaker 4: Welcome back to bloembogo Techology. I'm Caroline Hyde in London 428 00:22:22,280 --> 00:22:22,800 Speaker 4: and I'm. 429 00:22:22,680 --> 00:22:24,680 Speaker 3: Ed loved Loo in San Franciscoing Sure, as the sun 430 00:22:24,760 --> 00:22:27,879 Speaker 3: rises and sets, Carro, there are financial markets to talk about, 431 00:22:28,560 --> 00:22:29,040 Speaker 3: and then as. 432 00:22:29,000 --> 00:22:30,400 Speaker 5: Like one hundred coming off of it's highs. 433 00:22:30,400 --> 00:22:32,160 Speaker 4: At the moment, Ed, we're just up by seven tenths 434 00:22:32,200 --> 00:22:34,320 Speaker 4: of a percent, best move since July. 435 00:22:34,400 --> 00:22:36,360 Speaker 5: The tenth. But look, we're in the green and that's 436 00:22:36,400 --> 00:22:36,960 Speaker 5: not where. 437 00:22:36,760 --> 00:22:38,480 Speaker 4: We were last week, worst week that we had on 438 00:22:38,480 --> 00:22:42,000 Speaker 4: the NASTAG. More broadly, since April, we're seeing CrowdStrike pulling 439 00:22:42,040 --> 00:22:45,600 Speaker 4: to the downside almost thirteen percent actually now trading even 440 00:22:45,640 --> 00:22:48,480 Speaker 4: more significantly than it did on Friday when we first 441 00:22:48,560 --> 00:22:51,480 Speaker 4: learned of the outage that was sparked by an upgrade 442 00:22:51,520 --> 00:22:54,760 Speaker 4: that went horribly wrong for CrowdStrike and eight and a 443 00:22:54,800 --> 00:22:58,000 Speaker 4: half million device users. We keep an eye on that company. 444 00:22:58,040 --> 00:23:01,240 Speaker 4: We also keep an eye on digital assets now. Actually, 445 00:23:01,280 --> 00:23:04,480 Speaker 4: we did see spike higher amid the political news and 446 00:23:05,040 --> 00:23:09,399 Speaker 4: trying to digest ultimating what a Harris versus Trump, and indeed, 447 00:23:09,400 --> 00:23:12,800 Speaker 4: if it does remain Kamala Harris leading and vuying for 448 00:23:12,840 --> 00:23:15,119 Speaker 4: the nomination for the Democrats, what would that mean for 449 00:23:15,160 --> 00:23:17,199 Speaker 4: crypto Actually, the crypto market is kind of thinking that 450 00:23:17,240 --> 00:23:19,360 Speaker 4: it's better chances still for Trump, who is a pro 451 00:23:19,400 --> 00:23:22,040 Speaker 4: crypto candidate. We're up three and a half percent, but 452 00:23:22,240 --> 00:23:24,520 Speaker 4: notably we're just a little bit on the downside today. 453 00:23:25,160 --> 00:23:25,919 Speaker 7: Let's take a look. 454 00:23:25,800 --> 00:23:28,959 Speaker 3: At who in the digital asset world might benefit the 455 00:23:29,000 --> 00:23:32,320 Speaker 3: most from a potential second Donald Trump term in office 456 00:23:32,359 --> 00:23:34,960 Speaker 3: and who might lose the most Let's break it little 457 00:23:34,960 --> 00:23:36,440 Speaker 3: down blue Verhali Bassex here. 458 00:23:36,720 --> 00:23:37,320 Speaker 7: I mean there are. 459 00:23:37,240 --> 00:23:39,560 Speaker 3: Actually two layers to it, right that in the moment, 460 00:23:39,600 --> 00:23:42,439 Speaker 3: the market kind of saying, well, we think Trump is 461 00:23:42,480 --> 00:23:45,720 Speaker 3: the more likely outcome, but at the same time he's 462 00:23:45,760 --> 00:23:49,400 Speaker 3: the more pro crypto candidate, and trying to make sense 463 00:23:49,440 --> 00:23:51,080 Speaker 3: of that on an asset class that trades twenty four 464 00:23:51,080 --> 00:23:52,520 Speaker 3: to seven has been quite a lot of fun for you. 465 00:23:53,280 --> 00:23:56,000 Speaker 12: Well since early June. You just think about the rise 466 00:23:56,000 --> 00:23:58,480 Speaker 12: that bitcoin has seen after it was in an early 467 00:23:58,520 --> 00:24:00,560 Speaker 12: summer slump. Remember you and I about a month or 468 00:24:00,600 --> 00:24:03,280 Speaker 12: two ago, we're talking about how difficult it was for 469 00:24:03,320 --> 00:24:05,800 Speaker 12: this cryptocurrency to get out of that slump. But now 470 00:24:05,800 --> 00:24:08,520 Speaker 12: we're in a position where, yes, on the hopes of 471 00:24:08,560 --> 00:24:11,600 Speaker 12: a more friendly president here to the crypto industry, you 472 00:24:11,680 --> 00:24:14,080 Speaker 12: have seen Bitcoin rise something to the tune of ten 473 00:24:14,119 --> 00:24:19,160 Speaker 12: percent since when early kind of indications here of Biden 474 00:24:19,359 --> 00:24:23,760 Speaker 12: losing some steam when you saw him address the public 475 00:24:23,800 --> 00:24:25,919 Speaker 12: in different ways, and certainly even more so when he 476 00:24:26,000 --> 00:24:30,000 Speaker 12: stepped down from the nomination yesterday. But you also had, 477 00:24:30,040 --> 00:24:32,640 Speaker 12: for example, the likes of many bitcoin minors surge even 478 00:24:32,640 --> 00:24:35,480 Speaker 12: more than bitcoin itself, and a lot of people This 479 00:24:35,520 --> 00:24:37,800 Speaker 12: is a really interesting one here too, because remember it's 480 00:24:37,880 --> 00:24:41,080 Speaker 12: not just the presidential rhetoric that we're talking about here, 481 00:24:41,200 --> 00:24:44,480 Speaker 12: it's also this idea that you may expect an approval 482 00:24:44,840 --> 00:24:48,960 Speaker 12: of an ethereum filing this week and those ethereum spotytfs 483 00:24:48,960 --> 00:24:51,680 Speaker 12: to trade as well. So yes, has Gary Gensler under 484 00:24:51,720 --> 00:24:55,280 Speaker 12: the Biden administration come down very hard on the crypto community. Absolutely, 485 00:24:55,520 --> 00:24:59,800 Speaker 12: has it left an overhang on crypto related stocks, particularly exchanges. Also, 486 00:25:00,720 --> 00:25:04,840 Speaker 12: has the Biden White House overturned bills, that bipartisan bill 487 00:25:04,880 --> 00:25:07,159 Speaker 12: in particularly that would have changed the way crypto has 488 00:25:07,160 --> 00:25:11,000 Speaker 12: accounted for. Also Yes, But then again you have seen 489 00:25:11,119 --> 00:25:14,359 Speaker 12: also pivotal moments in the bitcoin industry and new record 490 00:25:14,480 --> 00:25:17,800 Speaker 12: highs under the Biden administration as well. So a little 491 00:25:17,880 --> 00:25:22,000 Speaker 12: unclear here as to how much more pro crypto Trump 492 00:25:22,040 --> 00:25:24,119 Speaker 12: would be than the Biden administration. 493 00:25:24,040 --> 00:25:26,440 Speaker 4: And of course whether or not it will be Harris 494 00:25:26,520 --> 00:25:30,159 Speaker 4: who Harris would be accompanied by. But Shanani Molbroney, I mean, 495 00:25:30,160 --> 00:25:33,280 Speaker 4: have we ever heard VP Harris speak particularly about crypto? 496 00:25:33,359 --> 00:25:35,960 Speaker 4: Have we haven't sort of tried to Gana ultimately you've 497 00:25:36,000 --> 00:25:37,760 Speaker 4: spoken to Mike Novelgrats and the like. 498 00:25:37,920 --> 00:25:39,760 Speaker 5: He really was pushing for this change of the god. 499 00:25:40,160 --> 00:25:41,960 Speaker 12: He was pushing for the change of the guard. But 500 00:25:42,000 --> 00:25:44,600 Speaker 12: I think also just as interesting here, Caroline, is this 501 00:25:44,680 --> 00:25:47,159 Speaker 12: idea that he wants to see a race. He is 502 00:25:47,240 --> 00:25:50,520 Speaker 12: one of the billionaires that did speak to Bloomberg about 503 00:25:50,520 --> 00:25:52,600 Speaker 12: the idea that she's going to have to win that 504 00:25:52,640 --> 00:25:56,080 Speaker 12: ticket going into that Democratic National Convention. 505 00:25:55,880 --> 00:25:56,800 Speaker 5: In mid August. 506 00:25:57,160 --> 00:25:59,840 Speaker 12: He did not flat out say she should have it 507 00:25:59,840 --> 00:26:03,160 Speaker 12: on day one, and so there is more support for 508 00:26:03,280 --> 00:26:07,160 Speaker 12: Kamala Harris. And remember it's not that the Trump administration 509 00:26:07,840 --> 00:26:10,240 Speaker 12: is all in on crypto as well. Remember Jake Clayton 510 00:26:10,320 --> 00:26:14,160 Speaker 12: was Treasury sorry Security is an Exchange Commission chair under 511 00:26:14,200 --> 00:26:17,800 Speaker 12: a Trump administration, and crypto did face some hurdles in 512 00:26:17,840 --> 00:26:18,880 Speaker 12: that time as well. 513 00:26:18,920 --> 00:26:20,679 Speaker 5: If you remember, the other thing. 514 00:26:20,720 --> 00:26:24,040 Speaker 12: Under a Trump administration that would come under very significant 515 00:26:24,040 --> 00:26:28,080 Speaker 12: concern is an idea of a central bank digital currency, 516 00:26:28,720 --> 00:26:33,280 Speaker 12: this idea that the government itself could surveil payments in 517 00:26:33,320 --> 00:26:37,080 Speaker 12: a broader way. So it's a nuanced view here, and 518 00:26:37,240 --> 00:26:39,439 Speaker 12: there are still a lot of holdouts in the crypto 519 00:26:39,440 --> 00:26:42,200 Speaker 12: community that don't say the Republican Party is the only 520 00:26:42,280 --> 00:26:44,880 Speaker 12: one for crypto, though it is leaning that way of late. 521 00:26:46,080 --> 00:26:49,040 Speaker 4: Shanata basek always twenty four seven for us as well 522 00:26:49,080 --> 00:26:51,320 Speaker 4: when it comes to crypto, we so appreciate it. Let's 523 00:26:51,359 --> 00:26:54,960 Speaker 4: speak to someone who's deep within the crypto ecosystem about 524 00:26:55,800 --> 00:26:58,480 Speaker 4: political change, but also that ETF that we're all llwing 525 00:26:58,640 --> 00:27:00,480 Speaker 4: to go live this week might be she's with a 526 00:27:00,560 --> 00:27:03,400 Speaker 4: CEO a bit go and you'll read on this ultimately 527 00:27:03,480 --> 00:27:07,160 Speaker 4: whether there will be a sudden clearer path for regulation 528 00:27:07,480 --> 00:27:09,320 Speaker 4: when it comes to crypto if we did have Trump, 529 00:27:09,359 --> 00:27:10,320 Speaker 4: or indeed if we did. 530 00:27:10,160 --> 00:27:13,640 Speaker 13: Have Harris, Well, we're going to find out really soon, 531 00:27:13,680 --> 00:27:16,480 Speaker 13: aren't we. Harris is a little bit unknown so far 532 00:27:16,600 --> 00:27:19,760 Speaker 13: in terms of what her individual views are, but for 533 00:27:19,800 --> 00:27:22,240 Speaker 13: the most part, I think she's probably going to echo 534 00:27:22,440 --> 00:27:25,159 Speaker 13: what Biden has done. And while people are focused a 535 00:27:25,200 --> 00:27:27,480 Speaker 13: lot on whether or not this is a party issue, 536 00:27:27,680 --> 00:27:29,479 Speaker 13: I think what it's really about is who are the 537 00:27:29,520 --> 00:27:33,560 Speaker 13: heads of the various agencies. The regulators have tremendous power here, 538 00:27:33,560 --> 00:27:36,159 Speaker 13: and I'm talking about you know, not just the SEC, 539 00:27:36,440 --> 00:27:40,199 Speaker 13: but also the FDI C and the OCC and to 540 00:27:40,200 --> 00:27:41,560 Speaker 13: a lesser extent, you know some of the I R 541 00:27:41,680 --> 00:27:45,160 Speaker 13: S and the FTC. Obviously, Secretary of Treasury is huge. 542 00:27:45,160 --> 00:27:49,159 Speaker 13: So whoever's in those seats greatly dictates what happens. And 543 00:27:49,240 --> 00:27:53,080 Speaker 13: let's be realistic here, Crypto, while a very important issue, 544 00:27:53,200 --> 00:27:56,640 Speaker 13: is not the biggest issue for most political political minds, 545 00:27:56,840 --> 00:27:58,920 Speaker 13: So you know they're going to be picking those seats 546 00:27:58,920 --> 00:28:01,480 Speaker 13: based on other factors, and yet who they put into 547 00:28:01,520 --> 00:28:04,760 Speaker 13: those positions can turn on or off crypto leg a 548 00:28:04,840 --> 00:28:05,320 Speaker 13: light switch. 549 00:28:06,600 --> 00:28:09,040 Speaker 3: Mike, one of the voices quoted in the Bloomberg News 550 00:28:09,119 --> 00:28:13,000 Speaker 3: Bitcoin rap talks about how if Trump is elected to office, 551 00:28:13,000 --> 00:28:17,760 Speaker 3: theres an asset class crypto becomes more investible. Is that 552 00:28:17,840 --> 00:28:19,880 Speaker 3: because of what you just said about regulators, that if 553 00:28:19,880 --> 00:28:22,840 Speaker 3: Trump comes to office with a clear pro crypto stance, 554 00:28:23,240 --> 00:28:25,359 Speaker 3: the rest of the market kind of follows suits. 555 00:28:26,680 --> 00:28:29,119 Speaker 13: Well, Trump has been very clear in certainly in the 556 00:28:29,160 --> 00:28:30,720 Speaker 13: last six months now. You can go back to twenty 557 00:28:30,800 --> 00:28:33,320 Speaker 13: nineteen and he had a different view, but you know, 558 00:28:33,400 --> 00:28:35,800 Speaker 13: he's consistent now. And I think what's happened is he's 559 00:28:35,800 --> 00:28:38,240 Speaker 13: actually learned the market has evolved by four years. We've 560 00:28:38,240 --> 00:28:41,040 Speaker 13: got tremendous infrastructure that we did not have four years ago. 561 00:28:41,400 --> 00:28:43,760 Speaker 13: So I think he is ready to help make you know, 562 00:28:43,800 --> 00:28:47,080 Speaker 13: a crypto and avestable asset, and frankly, regardless of which 563 00:28:47,320 --> 00:28:50,600 Speaker 13: political side you're on. You know, digital assets crypto are 564 00:28:50,640 --> 00:28:54,400 Speaker 13: about money for the people and about freedom of choice. Now, 565 00:28:54,440 --> 00:28:57,280 Speaker 13: these are two virtues that both parties of spouse to 566 00:28:57,320 --> 00:29:01,320 Speaker 13: be in favor of. However, you know, some political leaders 567 00:29:01,600 --> 00:29:04,440 Speaker 13: tend to lean more towards give the power to the banks, right, 568 00:29:04,800 --> 00:29:07,120 Speaker 13: So I think there's a real challenge of there's a 569 00:29:07,200 --> 00:29:10,160 Speaker 13: there's a fight going on behind the scenes for power, 570 00:29:10,520 --> 00:29:13,240 Speaker 13: you know, kind of in the financial institution system, and 571 00:29:13,280 --> 00:29:14,680 Speaker 13: are you going to give that to the banks or 572 00:29:14,680 --> 00:29:16,600 Speaker 13: are you're going to actually open it up with freedom 573 00:29:16,720 --> 00:29:19,720 Speaker 13: and let people decide. So Trump has definitely said the 574 00:29:19,760 --> 00:29:23,120 Speaker 13: latter Biden put in people that were more in favor of, 575 00:29:23,400 --> 00:29:25,880 Speaker 13: you know, kind of the existing banking system. And that's 576 00:29:25,920 --> 00:29:27,560 Speaker 13: the question that we have in front of us, is 577 00:29:28,120 --> 00:29:29,320 Speaker 13: you know what's going to happen next. 578 00:29:29,960 --> 00:29:32,080 Speaker 3: I guess the joy of crypto markets is it trades 579 00:29:32,120 --> 00:29:34,080 Speaker 3: twenty four to seven. And just like everyone else, I 580 00:29:34,120 --> 00:29:36,480 Speaker 3: was looking at bitcoin over the weekend, is the political 581 00:29:36,520 --> 00:29:41,360 Speaker 3: headlines here? Do you read much into the minute by 582 00:29:41,440 --> 00:29:44,800 Speaker 3: minute move when a news event like this past weekend happens. 583 00:29:44,840 --> 00:29:47,840 Speaker 3: Does the market tell you anything about popular sentiment? 584 00:29:49,560 --> 00:29:50,080 Speaker 7: It does? 585 00:29:50,240 --> 00:29:51,760 Speaker 13: I mean, you always have to take away a grain 586 00:29:51,800 --> 00:29:53,560 Speaker 13: of salt. It's really hard to read the tea leaves 587 00:29:53,560 --> 00:29:56,000 Speaker 13: and not a trader. I think some people put too 588 00:29:56,080 --> 00:30:00,640 Speaker 13: much emphasis on small term, short short movements. But no, 589 00:30:00,760 --> 00:30:03,000 Speaker 13: we do see pops, you know, when people are seeing 590 00:30:03,040 --> 00:30:06,120 Speaker 13: a more positive outlook. And I think right now, you know, 591 00:30:06,240 --> 00:30:09,080 Speaker 13: the Trump administration, if you were to come in clearly 592 00:30:09,120 --> 00:30:13,000 Speaker 13: signals are more favorable approach to crypto, and we'll see 593 00:30:13,000 --> 00:30:15,320 Speaker 13: what happens if it's anything else. But you know, of 594 00:30:15,320 --> 00:30:20,760 Speaker 13: course Biden and then Harris by kind of by proximity 595 00:30:20,840 --> 00:30:22,920 Speaker 13: would also likely be putting in the same types of 596 00:30:22,960 --> 00:30:25,160 Speaker 13: candidates and will probably look pretty negative for crypto. 597 00:30:26,600 --> 00:30:26,800 Speaker 5: Mike. 598 00:30:27,040 --> 00:30:30,040 Speaker 4: This weekend, we're anticipating Trump to speak at a big 599 00:30:30,080 --> 00:30:32,959 Speaker 4: bitcoin conference over in Nashville, likely to be seeing some 600 00:30:33,000 --> 00:30:35,680 Speaker 4: more money coming from the crypto ecosystem into his own 601 00:30:35,760 --> 00:30:37,200 Speaker 4: coffers for fundraising. 602 00:30:37,640 --> 00:30:39,440 Speaker 5: What about the people you speak to about. 603 00:30:39,200 --> 00:30:42,880 Speaker 4: Whether they're going to be making money or donations to 604 00:30:43,480 --> 00:30:45,600 Speaker 4: a Harris led Democratic Party. 605 00:30:46,760 --> 00:30:48,600 Speaker 13: Look, I've been a single issue voter. I think a 606 00:30:48,640 --> 00:30:51,360 Speaker 13: lot of crypto people are, I mean BICCO. Where we 607 00:30:51,480 --> 00:30:55,040 Speaker 13: stand in the ecosystem, I think actually our clients expect 608 00:30:55,160 --> 00:30:57,160 Speaker 13: us to be this way, So we're really looking out 609 00:30:57,200 --> 00:30:59,360 Speaker 13: for how do we make digitalized it's better. We do 610 00:30:59,440 --> 00:31:03,720 Speaker 13: think it is systemically important for the United States to 611 00:31:03,720 --> 00:31:07,040 Speaker 13: be competitive in financial markets that we have solid digital assets. 612 00:31:08,000 --> 00:31:10,080 Speaker 13: So in general, Look, there's still a lot of momentum 613 00:31:10,080 --> 00:31:14,120 Speaker 13: behind Trump. Prior to Trump coming in and really declaring that, hey, 614 00:31:14,120 --> 00:31:15,240 Speaker 13: this is an important issue. 615 00:31:15,000 --> 00:31:15,920 Speaker 8: For America's future. 616 00:31:16,320 --> 00:31:18,800 Speaker 13: You know, the current administration didn't seem to have any 617 00:31:18,960 --> 00:31:20,720 Speaker 13: inkling that that was true at all and has been 618 00:31:20,760 --> 00:31:23,600 Speaker 13: punitive on the good news side, Look, I don't think 619 00:31:23,640 --> 00:31:27,240 Speaker 13: this is Republican versus Democrats. Seventy one Democrats voted for 620 00:31:27,280 --> 00:31:28,800 Speaker 13: the FIT twenty one bill. I mean this is a 621 00:31:28,840 --> 00:31:32,680 Speaker 13: bipartisan approach. So well, there's a few people in each party, 622 00:31:33,320 --> 00:31:35,080 Speaker 13: maybe a little bit more in the Democratic Party, but 623 00:31:35,320 --> 00:31:38,400 Speaker 13: a few that don't like crypto. In general, this is 624 00:31:38,440 --> 00:31:40,920 Speaker 13: good for America, it's good for people, it's good for freedom. 625 00:31:41,480 --> 00:31:44,520 Speaker 13: Every politician should be standing up right now for bitcoin 626 00:31:44,560 --> 00:31:45,520 Speaker 13: and digital assets. 627 00:31:45,840 --> 00:31:48,600 Speaker 3: You have to talk about Vance JD Vance. Then if 628 00:31:48,600 --> 00:31:53,959 Speaker 3: you're going to talk about regulation, party versus party, do 629 00:31:54,040 --> 00:31:57,400 Speaker 3: you have a clear sense of his attitude toward the 630 00:31:57,440 --> 00:31:58,840 Speaker 3: cryptocurrency markets. 631 00:32:00,240 --> 00:32:02,719 Speaker 13: Well, good, good news, there is I mean his proximity 632 00:32:02,720 --> 00:32:05,320 Speaker 13: to Silicon Valley, has you know, past relationships with founders 633 00:32:05,360 --> 00:32:09,080 Speaker 13: Fund Peter thiel And and the others. He understands technology 634 00:32:09,640 --> 00:32:12,640 Speaker 13: just a heck of a lot better than the octogenarians 635 00:32:12,680 --> 00:32:15,280 Speaker 13: that have been running the show here in America for 636 00:32:15,320 --> 00:32:18,440 Speaker 13: the last few years. So I think it's refreshing to 637 00:32:18,480 --> 00:32:21,400 Speaker 13: have somebody from the younger generation. I mean, remember of 638 00:32:21,480 --> 00:32:24,800 Speaker 13: the you know, millennial millionaires out there, one hundred percent 639 00:32:24,840 --> 00:32:25,840 Speaker 13: of them own bitcoin. 640 00:32:26,360 --> 00:32:27,760 Speaker 1: So you know, if you. 641 00:32:27,680 --> 00:32:30,760 Speaker 13: Want to talk to the younger generation, they obviously want 642 00:32:30,800 --> 00:32:34,239 Speaker 13: to have a conversation about bitcoin, and and I think 643 00:32:34,360 --> 00:32:36,600 Speaker 13: jd Vance hits that a lot better than the than 644 00:32:36,640 --> 00:32:37,880 Speaker 13: the elder folks do. 645 00:32:38,560 --> 00:32:43,920 Speaker 3: One idea in a Trump presidency from a regulatory standpoint, Mike, 646 00:32:44,040 --> 00:32:46,800 Speaker 3: is to hand responsibility back to the States on a 647 00:32:46,880 --> 00:32:49,720 Speaker 3: number of issues. I'm not saying that there is any 648 00:32:50,240 --> 00:32:53,040 Speaker 3: certainty or even reporting that crypto would be caught into 649 00:32:53,080 --> 00:32:56,720 Speaker 3: that basket, but do you see that being a point 650 00:32:56,720 --> 00:33:00,240 Speaker 3: of tension a state bite state policy toward crit so 651 00:33:00,640 --> 00:33:05,480 Speaker 3: currency markets and consumer adoption versus a sort of federal level. 652 00:33:05,520 --> 00:33:08,160 Speaker 13: Look, Look, partly, I think that'd be great. I've been saying, 653 00:33:08,280 --> 00:33:10,440 Speaker 13: you know, We kind of have a Thomas Jefferson versus 654 00:33:10,480 --> 00:33:13,400 Speaker 13: Alexander Hamilton thing going on right now when it comes 655 00:33:13,440 --> 00:33:16,200 Speaker 13: to crypto, and you've got one for the Fed power 656 00:33:16,320 --> 00:33:17,840 Speaker 13: on the Hamilton's side and the other one for the 657 00:33:17,880 --> 00:33:23,880 Speaker 13: state's federation Jefferson. However, you know, America as a political 658 00:33:23,880 --> 00:33:27,959 Speaker 13: and economic system has a lot of federal ties. So 659 00:33:28,200 --> 00:33:31,520 Speaker 13: even if you are a state chartered bank, remember you 660 00:33:31,600 --> 00:33:36,040 Speaker 13: probably are carrying FDIC, which is the Federal Depository Insurance, right, 661 00:33:36,840 --> 00:33:42,040 Speaker 13: So the federal insurance is very difficult and has definitely 662 00:33:42,080 --> 00:33:45,160 Speaker 13: been told to lock out crypto. So whether you're a 663 00:33:45,200 --> 00:33:49,120 Speaker 13: federally chartered institution through the OCC or a state chartered one, 664 00:33:49,680 --> 00:33:52,800 Speaker 13: you're probably looking an FDIC and the Federal Reserve, the 665 00:33:52,800 --> 00:33:56,360 Speaker 13: fd I C has tremendous power over all of those banks. 666 00:33:56,640 --> 00:33:58,920 Speaker 13: So anyway, I would I would like to see more 667 00:34:00,080 --> 00:34:03,400 Speaker 13: competition across states to get all this stuff going. However, 668 00:34:03,600 --> 00:34:05,320 Speaker 13: remember there's federal hooks everywhere. 669 00:34:05,520 --> 00:34:08,600 Speaker 3: Mike Belchi bitgo CEO and co founder, thank you. You're 670 00:34:08,600 --> 00:34:10,960 Speaker 3: looking at live pictures from the White House. That is 671 00:34:11,000 --> 00:34:15,160 Speaker 3: the championship teams of the National Collegiate Athletic Association gathering 672 00:34:15,239 --> 00:34:18,239 Speaker 3: at the podium, we await Vice President Harris, who's due 673 00:34:18,320 --> 00:34:21,319 Speaker 3: to deliver remarks very quickly. Go out to Washington, DC. 674 00:34:21,800 --> 00:34:24,520 Speaker 3: Bloomberg's Kaylee lines and you know, we talked about it. 675 00:34:24,560 --> 00:34:27,240 Speaker 3: They're the focus of policy, one candidate versus another. 676 00:34:27,640 --> 00:34:29,560 Speaker 7: And what Harris may or may not say. 677 00:34:30,160 --> 00:34:32,400 Speaker 6: Yeah, and I mean this will be the first introduction 678 00:34:32,560 --> 00:34:35,440 Speaker 6: to Vice President Kamala Harris is not just the Vice president, 679 00:34:35,480 --> 00:34:39,560 Speaker 6: but as a Democrat seeking the nomination just in a 680 00:34:39,560 --> 00:34:41,760 Speaker 6: matter of weeks from now. This is her first official 681 00:34:42,080 --> 00:34:44,600 Speaker 6: event since announcing that she does intend to win and 682 00:34:44,640 --> 00:34:46,120 Speaker 6: earn that nomination. 683 00:34:46,840 --> 00:34:48,279 Speaker 5: This is going to be a very. 684 00:34:48,200 --> 00:34:50,040 Speaker 6: High profile for her, and I would point out this 685 00:34:50,080 --> 00:34:52,840 Speaker 6: is not the only time that Harris will be at 686 00:34:52,880 --> 00:34:56,480 Speaker 6: an event today. She just tweeted or posted on x 687 00:34:56,520 --> 00:34:59,160 Speaker 6: that in this first full day of our campaign, in 688 00:34:59,200 --> 00:35:01,520 Speaker 6: her words, she will be heading to Wilmington, Delaware to 689 00:35:01,560 --> 00:35:05,200 Speaker 6: say hello to the staff in headquarters. She says, one 690 00:35:05,280 --> 00:35:08,320 Speaker 6: day down, one hundred and five to go. She says, together, 691 00:35:08,400 --> 00:35:09,960 Speaker 6: we're going to win this, and we're going to hear 692 00:35:10,000 --> 00:35:12,640 Speaker 6: her in just moments as she walks now onto the 693 00:35:12,680 --> 00:35:15,920 Speaker 6: stage at the White House at this NCAA Sports Day event, 694 00:35:16,000 --> 00:35:18,239 Speaker 6: of course, not something that was intended to be a 695 00:35:18,320 --> 00:35:21,200 Speaker 6: campaign event, but given the events of the last twenty 696 00:35:21,239 --> 00:35:24,240 Speaker 6: four hours, is very much becoming one. As we await 697 00:35:24,760 --> 00:35:28,120 Speaker 6: the Vice president to give remarks after this first speaker. 698 00:35:28,239 --> 00:35:30,719 Speaker 4: Yeah, we do anticipate, and all to be said, I mean, 699 00:35:31,200 --> 00:35:36,240 Speaker 4: when they are already signed up to make speeches, recauding sport, 700 00:35:36,680 --> 00:35:39,880 Speaker 4: recording in a competition, how much do we think she 701 00:35:39,960 --> 00:35:42,719 Speaker 4: really can jump in the future policy making that she's 702 00:35:42,760 --> 00:35:45,520 Speaker 4: already thinking around, Well. 703 00:35:45,320 --> 00:35:47,120 Speaker 6: This isn't likely to be a speech that is going 704 00:35:47,160 --> 00:35:49,520 Speaker 6: to outline everything that she would like to do politically 705 00:35:49,520 --> 00:35:52,200 Speaker 6: as President Caroline. But of course, with only one hundred 706 00:35:52,200 --> 00:35:54,120 Speaker 6: and five days until the election, in just a matter 707 00:35:54,200 --> 00:35:57,160 Speaker 6: of weeks until the Democratic Convention in Chicago, which begins 708 00:35:57,200 --> 00:36:00,839 Speaker 6: August nineteenth, she frankly cannot afford to miss any opportunity 709 00:36:00,880 --> 00:36:02,600 Speaker 6: to plead her case as to why she should be 710 00:36:02,680 --> 00:36:05,640 Speaker 6: elevated from Vice President of the United States to President 711 00:36:05,719 --> 00:36:07,880 Speaker 6: of the United States. And given that this is the 712 00:36:07,880 --> 00:36:11,000 Speaker 6: first time she will be addressing cameras directly, not just 713 00:36:11,040 --> 00:36:14,920 Speaker 6: putting out statements in the written form to announce her candidacy, 714 00:36:15,040 --> 00:36:17,640 Speaker 6: to say that she doesn't tend to earn the Democratic nomination, 715 00:36:17,719 --> 00:36:20,560 Speaker 6: She's likely not going to go without saying that. But 716 00:36:20,600 --> 00:36:23,160 Speaker 6: of course, because the event is not a campaign event, 717 00:36:23,200 --> 00:36:26,600 Speaker 6: this is happening on the White House lawn as we speak, 718 00:36:26,760 --> 00:36:29,120 Speaker 6: it is likely to not be as steeped in policy 719 00:36:29,120 --> 00:36:31,400 Speaker 6: as that otherwise could have been, and many strategists have 720 00:36:31,440 --> 00:36:33,440 Speaker 6: spoken with in the last twenty four hours suggests that 721 00:36:33,719 --> 00:36:37,960 Speaker 6: Harris is probably between now in the convention beginning in 722 00:36:38,000 --> 00:36:40,239 Speaker 6: mid August, going to have to do some kind of 723 00:36:40,280 --> 00:36:42,840 Speaker 6: formal announcement of what her policy platform will be and 724 00:36:42,880 --> 00:36:45,640 Speaker 6: how it could be differentiated from Joe Biden, knowing that 725 00:36:45,680 --> 00:36:48,160 Speaker 6: Republicans are already on the attack trying to tie her 726 00:36:48,239 --> 00:36:51,319 Speaker 6: directly to the policies of this administration, given that she 727 00:36:51,360 --> 00:36:54,080 Speaker 6: has served this administration as Vice president for the last 728 00:36:54,120 --> 00:36:54,960 Speaker 6: three and a half years. 729 00:36:56,239 --> 00:36:59,439 Speaker 4: It's interesting as a technology show, we've obviously been trying 730 00:36:59,480 --> 00:37:03,280 Speaker 4: to gone a the interest from social media users, whether 731 00:37:03,280 --> 00:37:05,359 Speaker 4: they be in China, and it feels as though thus 732 00:37:05,400 --> 00:37:08,520 Speaker 4: far the Chinese community and government doesn't see much of 733 00:37:08,560 --> 00:37:11,680 Speaker 4: a tone shift coming from Biden passing a baton over 734 00:37:11,719 --> 00:37:14,600 Speaker 4: to Kamala Harris in a view that indeed she would 735 00:37:14,600 --> 00:37:18,440 Speaker 4: still be unlikely to beat out a Trump that seemingly 736 00:37:18,480 --> 00:37:20,880 Speaker 4: also ringing out in the crypto marketers. We're just speaking 737 00:37:21,120 --> 00:37:23,400 Speaker 4: what about donors here at the moment. I know we 738 00:37:23,440 --> 00:37:26,319 Speaker 4: spoke about it briefly, Kaylee, but has there been any 739 00:37:26,360 --> 00:37:29,400 Speaker 4: new update about support coming from a monetary perspective. 740 00:37:30,800 --> 00:37:32,600 Speaker 5: Well, the donors continue to pour in. 741 00:37:32,800 --> 00:37:35,800 Speaker 6: Act Blue, which of course is an aggregator of democratic donations, 742 00:37:35,840 --> 00:37:38,680 Speaker 6: had fifty million dollars raised from grassroot donors in just 743 00:37:38,760 --> 00:37:42,760 Speaker 6: the seven hours after Biden's announcement. In Harris's subsequent announcement 744 00:37:42,840 --> 00:37:45,160 Speaker 6: that she was seeking the nomination, are understanding is those 745 00:37:45,200 --> 00:37:48,560 Speaker 6: are continuing to roll in and that figure is taking higher. 746 00:37:48,600 --> 00:37:50,720 Speaker 6: We also have seen a number of high profile donors, 747 00:37:50,760 --> 00:37:54,080 Speaker 6: including rereied Hoffman, of course well known to the technology industry, 748 00:37:54,120 --> 00:37:56,960 Speaker 6: who came out to endorse Harris. George Soros has done 749 00:37:56,960 --> 00:37:59,360 Speaker 6: the same. Others, according to our reporting at Bloomberg, are 750 00:37:59,400 --> 00:38:02,319 Speaker 6: still remaining on the sidelines for now, as many are 751 00:38:02,320 --> 00:38:05,719 Speaker 6: not eager to see what could be an anointment, if 752 00:38:05,719 --> 00:38:09,520 Speaker 6: you will, or an actual coronation of Harris without a 753 00:38:09,600 --> 00:38:12,200 Speaker 6: full process here, but the Vice President is now at 754 00:38:12,200 --> 00:38:14,520 Speaker 6: the podium, so let's listen to her words. 755 00:38:14,840 --> 00:38:18,600 Speaker 14: To support these extraordinary student athletes, and it is good 756 00:38:18,640 --> 00:38:21,359 Speaker 14: to be here with so many leaders, including of course 757 00:38:21,440 --> 00:38:26,520 Speaker 14: members of Congress, members of our administration, and are extraordinary athletes. 758 00:38:27,360 --> 00:38:29,719 Speaker 14: Our President Joe Biden wanted to be here today. He 759 00:38:29,800 --> 00:38:33,040 Speaker 14: is feeling much better and recovering fast, and he looks 760 00:38:33,040 --> 00:38:35,560 Speaker 14: forward to getting back on the road. And I wanted 761 00:38:35,600 --> 00:38:38,960 Speaker 14: to say a few words about our President. Joe Biden's 762 00:38:39,000 --> 00:38:43,160 Speaker 14: legacy of accomplishment over the past three years is unmatched 763 00:38:43,600 --> 00:38:48,360 Speaker 14: in modern history. In one term, he has already yes, 764 00:38:48,520 --> 00:38:57,400 Speaker 14: you may laugh, in one term, he has already surpassed 765 00:38:57,600 --> 00:39:01,680 Speaker 14: the legacy of most presidents who have served two in office. 766 00:39:01,719 --> 00:39:04,560 Speaker 14: And I first came to know President Biden through his 767 00:39:04,640 --> 00:39:08,440 Speaker 14: son Bo. We work together as attorneys general in our states, 768 00:39:09,120 --> 00:39:12,400 Speaker 14: and back then, Beau would often tell me stories about 769 00:39:12,400 --> 00:39:15,680 Speaker 14: his dad. He would talk about the kind of father 770 00:39:16,280 --> 00:39:20,400 Speaker 14: and the kind of man that Joe Biden is. The 771 00:39:20,480 --> 00:39:25,279 Speaker 14: qualities that Bau revered in his father are the same 772 00:39:25,360 --> 00:39:29,040 Speaker 14: qualities that I have seen every day in our President. 773 00:39:29,800 --> 00:39:35,120 Speaker 14: His honesty, his integrity, his commitment to his faith and 774 00:39:35,200 --> 00:39:40,359 Speaker 14: his family, his big heart, and his love deep love 775 00:39:40,520 --> 00:39:44,799 Speaker 14: of our country. And I am first hand witness that 776 00:39:45,000 --> 00:39:50,160 Speaker 14: every day our President Joe Biden fights for the American people, 777 00:39:50,280 --> 00:39:53,880 Speaker 14: and we are deeply, deeply grateful for his service to 778 00:39:53,880 --> 00:39:54,319 Speaker 14: our nation. 779 00:40:01,719 --> 00:40:02,840 Speaker 5: And so with that on. 780 00:40:02,719 --> 00:40:05,920 Speaker 14: Behalf of our President and doctor Biden, I am honored 781 00:40:05,960 --> 00:40:07,799 Speaker 14: to welcome all of you to the White House to 782 00:40:07,840 --> 00:40:12,680 Speaker 14: celebrate the achievements of these great athletes. Every one of 783 00:40:12,719 --> 00:40:18,600 Speaker 14: them is a national champion. A national champion in America, 784 00:40:19,239 --> 00:40:22,680 Speaker 14: tens of millions of people play a sport as a child, 785 00:40:23,400 --> 00:40:26,560 Speaker 14: and the best of the best grow up to become 786 00:40:26,680 --> 00:40:33,800 Speaker 14: national champions. Here today we have seven undefeated teams, eleven 787 00:40:33,920 --> 00:40:42,640 Speaker 14: repeat champions, and twenty first time winners. Up about you all, 788 00:40:45,040 --> 00:40:47,839 Speaker 14: Some of you have represented our nation on the internationals. 789 00:40:47,960 --> 00:40:50,719 Speaker 3: That was Vice President Kamala Harris speaking publicly for the 790 00:40:50,760 --> 00:40:54,640 Speaker 3: first time since President Biden ended his reelection bid and 791 00:40:54,840 --> 00:40:59,239 Speaker 3: endorsed Vice President Harris to be the Democratic nominee. Let's 792 00:40:59,239 --> 00:41:01,560 Speaker 3: go back to be based Katie Lines in Washington, d C. 793 00:41:01,800 --> 00:41:04,680 Speaker 3: I mean, I was listening intently to what Vice President 794 00:41:04,680 --> 00:41:07,200 Speaker 3: Harris was saying. I think a lot of it was 795 00:41:07,560 --> 00:41:10,080 Speaker 3: noted already in the statement she put out Sunday. 796 00:41:10,160 --> 00:41:11,560 Speaker 7: Your analysis, Kayley. 797 00:41:12,760 --> 00:41:15,359 Speaker 6: Yeah, interesting that she chose not to speak about her 798 00:41:15,400 --> 00:41:18,200 Speaker 6: own qualifications to be president of the United States, now 799 00:41:18,200 --> 00:41:20,719 Speaker 6: that she has declared that she does intend to earn 800 00:41:20,960 --> 00:41:23,799 Speaker 6: the Democratic nomination, but instead to begin her remarks at 801 00:41:23,840 --> 00:41:26,359 Speaker 6: the White House in her first official event since all 802 00:41:26,400 --> 00:41:29,560 Speaker 6: of this went down yesterday, to talk about Joe Biden's legacy, 803 00:41:29,640 --> 00:41:32,719 Speaker 6: describing him as having in one term, saying that the 804 00:41:32,760 --> 00:41:34,960 Speaker 6: audience could clap for this, he has already surpassed the 805 00:41:35,040 --> 00:41:38,000 Speaker 6: legacy of most presidents who'd served two terms in office, 806 00:41:38,000 --> 00:41:42,000 Speaker 6: talking about honesty and integrity and faith. Deeply grateful, she said, 807 00:41:42,000 --> 00:41:44,960 Speaker 6: for his service to our nation. So she's not necessarily 808 00:41:45,000 --> 00:41:48,239 Speaker 6: making this about her today. She is talking about Joe 809 00:41:48,280 --> 00:41:50,400 Speaker 6: Biden and the legacy he will leave behind, knowing that 810 00:41:50,480 --> 00:41:53,000 Speaker 6: he is going to be a one term president in 811 00:41:53,040 --> 00:41:55,719 Speaker 6: his decision not to seek re election, and even as 812 00:41:55,760 --> 00:41:58,040 Speaker 6: he has suggested he would like to see the baton 813 00:41:58,640 --> 00:42:01,080 Speaker 6: or the torch passed to her, she didn't take this moment, 814 00:42:01,120 --> 00:42:04,120 Speaker 6: at least initially, to plead her own case and treat 815 00:42:04,200 --> 00:42:06,399 Speaker 6: this like a campaign event. She moved right from talking 816 00:42:06,440 --> 00:42:09,480 Speaker 6: about Joe Biden's legacy to commending the athletes who are 817 00:42:09,480 --> 00:42:11,799 Speaker 6: gathered on the stage behind her. It's an interesting choice 818 00:42:11,800 --> 00:42:14,359 Speaker 6: and does suggest that perhaps she's going to save most 819 00:42:14,400 --> 00:42:16,560 Speaker 6: of the campaigning for a later event. Again, I would 820 00:42:16,600 --> 00:42:19,000 Speaker 6: remind you she just announced a few minutes ago that 821 00:42:19,040 --> 00:42:22,480 Speaker 6: she will be heading Wilmington, Delaware later today to meet 822 00:42:22,480 --> 00:42:24,880 Speaker 6: with the campaign headquarters there. As she notes, there's just 823 00:42:24,880 --> 00:42:26,720 Speaker 6: one hundred and five days to go until the election, 824 00:42:28,239 --> 00:42:28,720 Speaker 6: and then. 825 00:42:28,800 --> 00:42:33,080 Speaker 4: As and when President Biden is fully recovered able to 826 00:42:33,160 --> 00:42:35,840 Speaker 4: be back in front of cameras, what do we expect 827 00:42:35,840 --> 00:42:38,040 Speaker 4: the relationship to become like over the next few months. 828 00:42:39,239 --> 00:42:41,600 Speaker 6: Well, Joe Biden, in his statement announcing he wouldn't seek 829 00:42:41,640 --> 00:42:43,840 Speaker 6: reelection yesterday, said that he does think it's in the 830 00:42:43,840 --> 00:42:46,120 Speaker 6: best interest of the party in the nation to focus 831 00:42:46,160 --> 00:42:48,880 Speaker 6: solely on continuing out the rest of his term and 832 00:42:48,920 --> 00:42:51,360 Speaker 6: his duties as president. To me, that does suggest that 833 00:42:51,400 --> 00:42:54,200 Speaker 6: he may not be super active in the actual ongoing 834 00:42:54,239 --> 00:42:57,200 Speaker 6: presidential campaign, But ultimately that's likely a decision that would 835 00:42:57,239 --> 00:42:59,520 Speaker 6: be left to Kamala Harris or whoever is a top 836 00:42:59,640 --> 00:43:02,480 Speaker 6: the Democratic ticket to what extent they want to attach 837 00:43:02,560 --> 00:43:05,960 Speaker 6: themselves to Joe Biden and have Joe Biden campaigning on 838 00:43:06,040 --> 00:43:08,560 Speaker 6: their behalf, knowing that there will be a Republican effort 839 00:43:08,600 --> 00:43:11,000 Speaker 6: to tie Kamala Harris directly to the policies of the 840 00:43:11,000 --> 00:43:15,160 Speaker 6: Biden administration, suggests that she is essentially just a continuation 841 00:43:15,480 --> 00:43:17,600 Speaker 6: of the same. You could see how she may want 842 00:43:17,640 --> 00:43:20,839 Speaker 6: to distance herself a bit from that. It of course 843 00:43:20,880 --> 00:43:23,480 Speaker 6: remains to be seen. Joe Biden just days ago, as 844 00:43:23,480 --> 00:43:25,680 Speaker 6: we all know, was talking about returning to the campaign 845 00:43:25,719 --> 00:43:28,480 Speaker 6: trail when he recovers from COVID this week, and all 846 00:43:28,480 --> 00:43:30,560 Speaker 6: of a sudden his decision had very much changed, as 847 00:43:30,560 --> 00:43:32,879 Speaker 6: he backed out suddenly yesterday. So we know that things 848 00:43:32,920 --> 00:43:35,840 Speaker 6: are evolving in real time. And it looks like the 849 00:43:35,920 --> 00:43:40,120 Speaker 6: Vice President has just wrapped up her remarks without saying 850 00:43:40,200 --> 00:43:42,280 Speaker 6: much about her candidacy whatsoever. 851 00:43:43,880 --> 00:43:46,759 Speaker 4: Maybe later in Wilmington. I know that you'll be ontel 852 00:43:46,800 --> 00:43:49,600 Speaker 4: of that. Kaylie Nines, We thank you so much. Meanwhile, 853 00:43:49,600 --> 00:43:52,600 Speaker 4: coming up, we get back to tech and what to 854 00:43:52,640 --> 00:43:54,440 Speaker 4: expect from this week's earnings. 855 00:43:54,440 --> 00:44:06,879 Speaker 5: This is Brumbag Technology. 856 00:44:09,680 --> 00:44:12,080 Speaker 4: Let's look ahead to this week's tech earnings what to expect, 857 00:44:12,120 --> 00:44:16,360 Speaker 4: starting with SAP today Germany, Spotify, Google, Tesla reporting tomorrow. 858 00:44:16,680 --> 00:44:19,160 Speaker 4: Ran Dostellica is with us to run us through well 859 00:44:19,160 --> 00:44:21,200 Speaker 4: whether we can live up to some valuations. 860 00:44:20,760 --> 00:44:24,440 Speaker 15: Ryan, Yes, absolutely, that's the key question. This quarter, a 861 00:44:24,480 --> 00:44:27,720 Speaker 15: lot of Magnificent and seven companies are expected to deliver 862 00:44:27,800 --> 00:44:30,360 Speaker 15: a deceleration in earnings. Earnings will still be pretty strong. 863 00:44:30,400 --> 00:44:32,600 Speaker 15: Growth will still be pretty strong, but slower than we've 864 00:44:32,640 --> 00:44:35,160 Speaker 15: seen in past quarters. And given how much these stocks 865 00:44:35,160 --> 00:44:36,960 Speaker 15: have run up so far this year, even with the 866 00:44:37,000 --> 00:44:40,000 Speaker 15: recent fultility we've seen in this sector, that's the key question. 867 00:44:40,080 --> 00:44:42,239 Speaker 15: How much are these companies able to justify how much 868 00:44:42,280 --> 00:44:43,040 Speaker 15: they've moved. 869 00:44:42,800 --> 00:44:43,439 Speaker 7: Up this year. 870 00:44:44,920 --> 00:44:49,480 Speaker 3: Tuesday gonna be big, Alphabet Tesla. Is there a calendar 871 00:44:49,520 --> 00:44:52,400 Speaker 3: second quarter story across all of tech you're watching, Ryan. 872 00:44:53,239 --> 00:44:55,120 Speaker 15: I think the main issues are going to be how 873 00:44:55,200 --> 00:44:57,319 Speaker 15: much of these companies going to continue spending on their 874 00:44:57,320 --> 00:45:00,400 Speaker 15: AI initiatives and what kind of return on in investment 875 00:45:00,520 --> 00:45:03,040 Speaker 15: are they seeing from these persitions. I think Alphabet's going 876 00:45:03,080 --> 00:45:05,080 Speaker 15: to be particularly important with that, We're going to be 877 00:45:05,080 --> 00:45:07,000 Speaker 15: watching how star of the cloud business is there, and 878 00:45:07,000 --> 00:45:08,480 Speaker 15: then more Brawley, We're just going to be looking to 879 00:45:08,520 --> 00:45:11,080 Speaker 15: see what the state of the digital advertising market looks like. 880 00:45:11,120 --> 00:45:13,160 Speaker 15: We already saw some of that from Netflix last week 881 00:45:13,160 --> 00:45:14,759 Speaker 15: as they talked about their ad here, but I think 882 00:45:14,800 --> 00:45:17,000 Speaker 15: for Alphabet and then Meta next week, those are going 883 00:45:17,040 --> 00:45:18,879 Speaker 15: to be the key focuses. How much are they've seen 884 00:45:19,400 --> 00:45:21,560 Speaker 15: from the benefit from AI, how much they spinning on 885 00:45:21,600 --> 00:45:24,000 Speaker 15: it and will that be enough? Kind of justifies doctor 886 00:45:24,040 --> 00:45:25,480 Speaker 15: that the Bold up pretty strongly. 887 00:45:25,160 --> 00:45:30,040 Speaker 4: This year, in particular in video Ryan, so great to 888 00:45:30,040 --> 00:45:33,359 Speaker 4: get your perspective, Roan Vestelica, We appreciate it now. That 889 00:45:33,400 --> 00:45:35,319 Speaker 4: does it for this edition of bluebour Technology. A lot 890 00:45:35,320 --> 00:45:36,920 Speaker 4: of earnings to anticipate. 891 00:45:36,440 --> 00:45:40,040 Speaker 3: There for Ed you start the week with a presidential race, 892 00:45:40,239 --> 00:45:42,640 Speaker 3: earnings and the biggest outage in history. 893 00:45:43,200 --> 00:45:45,200 Speaker 7: Makes for a good show for recapping on the podcast. 894 00:45:45,280 --> 00:45:48,440 Speaker 3: You know where to find it Terminal, Apple, Spotify, iHeart 895 00:45:48,440 --> 00:45:52,000 Speaker 3: Caroline's in London this week I'm in San Francisco. It's 896 00:45:52,160 --> 00:45:55,239 Speaker 3: an amazing week to tune in learn about what's going 897 00:45:55,280 --> 00:45:58,160 Speaker 3: on in the world of technology. This is Bloomberg Technology 898 00:46:00,160 --> 00:46:00,600 Speaker 1: On the