WEBVTT - ASML Data Stolen and Elon Musk Not Leaving Twitter Just Yet 0:00:13.640 --> 0:00:16.759 I'm Caroline Higher, Bloomberg's world headquarters in New York, and 0:00:16.800 --> 0:00:19.840 I made Lovelow in San Francisco. This is Bloomberg Technology 0:00:19.960 --> 0:00:23.759 coming up. Espionage in the chip industry ASML accusing a 0:00:23.880 --> 0:00:28.639 former China based employee are stealing confidential information, the second 0:00:28.680 --> 0:00:32.720 such breach in less than a year. We discussed plus 0:00:32.760 --> 0:00:35.480 are we there yet? Elon Musk says he needs until 0:00:35.560 --> 0:00:38.600 late this year to fix Twitter before handing over to 0:00:38.720 --> 0:00:41.599 a new CEO. Will bring you the details and valuing 0:00:41.760 --> 0:00:45.159 the AI opportunity. We sit down with Sonja Juang, partner 0:00:45.200 --> 0:00:47.800 on Sequoia's capital growth team, for a look at the 0:00:47.880 --> 0:00:51.440 future of generative AI technology and the startups driving it. 0:00:51.680 --> 0:00:55.160 But first were checking on the markets because well, initially 0:00:55.280 --> 0:00:57.960 there was panic that retail sales were growing at almost 0:00:57.960 --> 0:01:01.760 the fastest clip in two years up three. Does that 0:01:01.800 --> 0:01:03.680 mean inflation is going to be high too? But then 0:01:04.080 --> 0:01:06.280 the market decides to drive higher and in fact we 0:01:06.360 --> 0:01:09.440 closed session highers in the natstack up nine. The modern 0:01:09.440 --> 0:01:11.920 markets more worried about the good data and there are 0:01:12.160 --> 0:01:14.040 some six spaces points as they think the Fed's going 0:01:14.080 --> 0:01:17.160 to have to tackle that inflammation inflation. Interestingly, we've got 0:01:17.160 --> 0:01:19.360 a bit of a sell off in Chinese related names 0:01:19.400 --> 0:01:21.200 at the moment. Maybe this is a bit more of 0:01:21.200 --> 0:01:23.479 a focus on what's happening in terms of geopolitics rather 0:01:23.480 --> 0:01:25.160 than what's happening in the macro economy in the US. 0:01:25.200 --> 0:01:27.039 Flipping on a gear, I'm going to delve into some 0:01:27.080 --> 0:01:29.480 of the micro stories. On the day, we had some 0:01:29.560 --> 0:01:33.400 significant rallies. I mean notably Roadblocks up twenty six percent, 0:01:33.520 --> 0:01:37.320 best day since December twenty Everyone was gaming over the 0:01:37.360 --> 0:01:40.919 holiday season, and also they were really adding those active users. 0:01:41.080 --> 0:01:44.959 Airbnb up best dayance November twenty one really on a 0:01:45.000 --> 0:01:46.920 tear as well, as it seems as though the strength 0:01:47.000 --> 0:01:51.080 of twenty two it's going to continue into next year. Yeah, 0:01:51.120 --> 0:01:53.080 earning is a real driver, and that's still the case 0:01:53.160 --> 0:01:55.840 after ours this Wednesday. These are names I'm watching. Cisco 0:01:55.960 --> 0:01:59.400 forecasting sales in the April quarter will rise eleven to 0:01:59.480 --> 0:02:02.960 thirteen sent, double what analysts were forecasting, that stock having 0:02:03.000 --> 0:02:05.840 a positive reaction. Twilio of course just gone through a 0:02:05.880 --> 0:02:09.560 second round of layoffs, but a surprise forecast for an 0:02:09.600 --> 0:02:13.880 adjusted profit cents per share for the current fiscal quarter. 0:02:14.200 --> 0:02:16.280 The street looking for a two cent lost That a 0:02:16.320 --> 0:02:19.680 big surprise and boosting that stock boos Roku one that 0:02:19.720 --> 0:02:22.600 we haven't spoken about as much carry up even after 0:02:22.680 --> 0:02:25.400 saying first quarter sales will be seven hundred million dollars 0:02:25.400 --> 0:02:28.960 slightly above street expectations. That there's been concerned about how 0:02:29.000 --> 0:02:31.680 they're losing market share to everyone else out there and 0:02:31.760 --> 0:02:34.520 seemed to be weathering the storm. The big story of 0:02:34.560 --> 0:02:37.360 the day in markets but also geo politically was a 0:02:37.560 --> 0:02:40.120 SML the Dutch chip equipment makers saw It's u s 0:02:40.160 --> 0:02:42.240 A d r S actually under pressure for most of 0:02:42.280 --> 0:02:45.880 Wednesday session but basically closing flat. What we know, the 0:02:45.919 --> 0:02:49.840 company disclosed that a former employee in China stole information. 0:02:49.960 --> 0:02:52.560 That's what was driving the narrative. Now in the last 0:02:52.600 --> 0:02:56.000 thirty minutes of breaking bloomberg scoop which gives us some 0:02:56.040 --> 0:03:00.120 more insight into exactly what that information, what that data was. 0:03:00.160 --> 0:03:03.280 That's bringing an executive editor, Tom Giles, who has the details. Tom, 0:03:03.280 --> 0:03:05.640 what have we learned in the last thirty minutes We 0:03:05.720 --> 0:03:09.519 have gotten information about We've got more information on exactly 0:03:09.560 --> 0:03:13.880 what was stolen. So this ex employee, this China based employee, 0:03:14.200 --> 0:03:18.400 took information from a data management system that's used internally 0:03:18.840 --> 0:03:24.920 to let employees collaborate on products, and the products in 0:03:24.960 --> 0:03:29.160 this instance are very expensive lithography machines that a s 0:03:29.280 --> 0:03:34.600 m L uses that that customers use to actually make chips. 0:03:34.840 --> 0:03:38.720 It's very expensive equipment. It's these these are these could 0:03:38.720 --> 0:03:41.040 be the size of busses and costs upwards of a 0:03:41.160 --> 0:03:44.400 hundred and seventy million dollars a piece. So it's very 0:03:44.520 --> 0:03:48.520 very valuable information. And what this person took, we don't 0:03:48.520 --> 0:03:51.680 have the specifics, but they we know where it came from, 0:03:51.840 --> 0:03:55.440 and it came from this like information sharing system called 0:03:55.480 --> 0:04:02.000 life Cycle life Center, Team Center. Is that what I mean? 0:04:02.000 --> 0:04:03.240 If he seems to be coming from the likes of 0:04:03.280 --> 0:04:06.240 Siemens Tom. What's so interesting is that this is what 0:04:06.320 --> 0:04:08.640 the second time that we've seen such a breach from 0:04:08.760 --> 0:04:12.000 China being linked for a s mL, and all of 0:04:12.000 --> 0:04:15.720 this just speaks to the tension around US and China, 0:04:15.800 --> 0:04:20.359 particularly in technology. Yeah, you know, the US is doing 0:04:20.400 --> 0:04:24.520 everything it can to deprive China of the information and 0:04:24.560 --> 0:04:27.599 the and the and the technology it needs in order 0:04:27.640 --> 0:04:30.360 to become a force in hip making. It legs far 0:04:30.480 --> 0:04:34.559 behind the US in this critical technology, and the US 0:04:34.640 --> 0:04:37.960 is doing everything it can, and it has asked players 0:04:38.000 --> 0:04:41.360 in Japan and the Netherlands, which are some of the companies, 0:04:41.400 --> 0:04:45.720 including a s mL that make the most sophisticated equipment. 0:04:45.839 --> 0:04:48.200 If you don't have a s m L on your side, 0:04:48.440 --> 0:04:51.160 it's really hard for you to come anywhere near the 0:04:51.200 --> 0:04:54.640 capabilities of the US and the West. And that's why 0:04:54.720 --> 0:04:56.920 a s m L is so critical. It is one 0:04:56.960 --> 0:04:59.560 of the very few companies in the world that makes 0:04:59.600 --> 0:05:05.320 these photography systems that the information was stolen about UM 0:05:05.480 --> 0:05:08.479 using everything from e vs to military gear. Tom As always, 0:05:08.520 --> 0:05:10.600 thank you so much for helping break down what is 0:05:10.880 --> 0:05:14.200 another great scoop coming from your team. Now turning to 0:05:14.279 --> 0:05:17.479 another company that we're watching, just talking about Evis and well, 0:05:17.560 --> 0:05:19.200 the man that's behind one of the key ones, but 0:05:19.200 --> 0:05:22.160 he's also behind Twitter at the moment. Elon Musk spoke 0:05:22.240 --> 0:05:25.120 to the World Government's summit in Dubai earlier today, so 0:05:25.120 --> 0:05:28.039 that he may need to rest, in fact, have the 0:05:28.040 --> 0:05:30.560 rest of this year to make things right at Twitter 0:05:30.800 --> 0:05:33.520 before handling off to a new chief executive officer. Just 0:05:33.560 --> 0:05:38.719 take a listen. I think I need to um stabilize 0:05:38.760 --> 0:05:42.760 the organization and just make sure it's in a financially 0:05:43.160 --> 0:05:47.520 healthy place. UM and that the product road map is 0:05:47.680 --> 0:05:51.560 clearly laid out. UM, So I don't know. I'm guessing 0:05:51.560 --> 0:05:54.800 probably towards the end of this year, UM, we should 0:05:54.800 --> 0:05:59.000 would be good timing to um find someone else to 0:05:59.040 --> 0:06:01.040 run the company, because I think it should be in 0:06:01.080 --> 0:06:03.640 a stable position around you know, at the end of 0:06:03.720 --> 0:06:07.320 this year, well Man has followed his entire journey over 0:06:07.520 --> 0:06:10.520 Twitter is one cut Wagner and I feel like a 0:06:10.560 --> 0:06:13.600 lot of Tesla shareholders were a bit disappointed by that timeline. 0:06:13.600 --> 0:06:17.719 But what it was the Twitter reaction? Yeah, Well for me, 0:06:17.920 --> 0:06:20.600 having you know, seen the pole that Elon Musk came 0:06:20.600 --> 0:06:22.440 out with at the end of last year saying should 0:06:22.440 --> 0:06:24.800 I find someone? I think the expectation from folks is 0:06:24.839 --> 0:06:27.200 that this was going to happen a lot quicker than 0:06:27.360 --> 0:06:30.160 a full calendar year, right, But as he pointed out, 0:06:30.240 --> 0:06:32.960 he has really been dramatically trying to cut down on 0:06:33.000 --> 0:06:35.760 the costs at Twitter. He's still spending a lot more 0:06:35.839 --> 0:06:38.560 time physically in the building than I would have predicted 0:06:38.600 --> 0:06:40.760 when he first took over. So you know, he he 0:06:40.800 --> 0:06:42.800 clearly doesn't feel like Twitter is in eight place where 0:06:42.800 --> 0:06:45.000 he can hand it off to someone else. Now. I 0:06:45.040 --> 0:06:48.159 also think, let's be real when he does find a 0:06:48.160 --> 0:06:50.600 new CEO. It's not as if he's suddenly going to disappear, right. 0:06:50.600 --> 0:06:52.240 This is someone who likes to be very, very hands 0:06:52.279 --> 0:06:54.720 on with the companies that he has. But I do 0:06:54.839 --> 0:06:56.880 think that it's taking a lot longer it will. It 0:06:56.920 --> 0:06:58.919 sounds like take a lot longer than I had expected. 0:06:59.320 --> 0:07:01.000 As we do each and every day, we went to 0:07:01.040 --> 0:07:03.440 our audience and asked, what do you think must should 0:07:03.440 --> 0:07:05.560 be doing right now? Should he be doubling down on Twitter? 0:07:05.760 --> 0:07:08.240 Should he go back to Tesla? These are the results. 0:07:08.240 --> 0:07:11.920 They kind of speak for themselves. Respondents say, get a 0:07:11.960 --> 0:07:16.000 new CEO in a SAP. What I'm finally hard to 0:07:16.040 --> 0:07:18.280 pass is what has he actually done there? What is 0:07:18.320 --> 0:07:21.040 he actually changed? And what is a brief amount of 0:07:21.080 --> 0:07:24.280 time since taking over? Well, we know that he has 0:07:24.320 --> 0:07:26.480 gotten rid of a lot of people, right in terms 0:07:26.520 --> 0:07:30.000 of costs, They've cut more well over half of the staff. 0:07:30.200 --> 0:07:32.160 They're not paying some of their bills, they're trying to 0:07:32.160 --> 0:07:35.880 renegotiate contracts with vendors. So you know, there are business 0:07:35.920 --> 0:07:39.160 things that he's doing to try and drastically limit how 0:07:39.240 --> 0:07:41.800 much money Twitter is spending. So that's one thing from 0:07:41.800 --> 0:07:44.200 a product standpoint, you know, it doesn't feel like there's 0:07:44.200 --> 0:07:45.480 been a ton. Of course, for those of us who 0:07:45.520 --> 0:07:47.880 use Twitter all the time, we've seen things like, uh, 0:07:47.920 --> 0:07:50.680 you know, the algorithm changes or the tweaks too, maybe 0:07:50.800 --> 0:07:52.560 the types of things we see in our feed that 0:07:52.600 --> 0:07:54.680 we didn't before. But it's not as if there's been 0:07:54.720 --> 0:07:57.840 some major new product then none of us were expecting 0:07:57.880 --> 0:07:59.800 that's come out yet. Yeah. Well, I guess Twitter blue 0:07:59.840 --> 0:08:01.800 to a setting stand you have the edit if you 0:08:02.200 --> 0:08:04.480 you know edit button issues. I canna ask you a 0:08:04.480 --> 0:08:07.480 difficult question, knowing full well none of us had an answer. 0:08:07.560 --> 0:08:11.120 But who could be yea and the next CEO at Twitter? Well, 0:08:11.120 --> 0:08:13.200 what's funny is that, you know, I think we we've 0:08:13.240 --> 0:08:15.600 heard and reported that there's kind of a search going on, 0:08:15.720 --> 0:08:17.360 or there was a search at the end of last year. 0:08:17.600 --> 0:08:20.400 But what's you know, My read on this is that 0:08:20.440 --> 0:08:22.360 it's going to be someone who Ellen is very close 0:08:22.400 --> 0:08:24.320 with already, right, I mean, he's not going to just 0:08:24.840 --> 0:08:27.120 hand this company over to someone that a search firm 0:08:27.200 --> 0:08:29.280 finds for him. It's going to be a trusted adviser. 0:08:29.320 --> 0:08:31.280 It's going to be a friend. And you know, I 0:08:31.320 --> 0:08:33.800 think that list is probably relatively short. You see you 0:08:33.800 --> 0:08:35.560 look at the people who have been helping out most 0:08:35.600 --> 0:08:37.360 at Twitter, which maybe it gives you the best idea. 0:08:37.480 --> 0:08:39.600 There's people like David Sachs, right, who he knows from 0:08:39.640 --> 0:08:42.959 his PayPal days of venture capitalist Steve Davis, the president 0:08:43.000 --> 0:08:44.679 of the boring Company, has been spending a lot of 0:08:44.720 --> 0:08:46.640 time on Twitter. Those are the types of names that 0:08:46.679 --> 0:08:48.960 I would be leaning toward. But again it sounds like 0:08:49.000 --> 0:08:51.640 we have a lot of time before he's going to 0:08:51.720 --> 0:08:55.000 make that decision. Cogner, love having you on about it, 0:08:55.040 --> 0:08:57.320 Thank you so much. Meanwhile, let's stick on the theme 0:08:57.320 --> 0:09:00.360 of elon Musque because thanks to Tesla's se many scent 0:09:00.720 --> 0:09:03.560 rise this year, that's the stock price. The millionaire is 0:09:03.600 --> 0:09:05.840 closing in on recapturing his title as the world's which 0:09:05.880 --> 0:09:08.520 is person since, of course he fell behind Bernard oh 0:09:08.559 --> 0:09:11.920 No in December, but may take a bit longer for 0:09:12.040 --> 0:09:15.600 mus to actually overtake No, who's of course behind LVMH. 0:09:15.960 --> 0:09:19.000 He disclosed in fact this week he gave eleven point 0:09:19.080 --> 0:09:23.600 six million Tesla shares to unnamed charitable causes between August 0:09:23.679 --> 0:09:26.440 and December two. Now, the stock was worth about one 0:09:26.440 --> 0:09:28.640 point nine billion dollars based on closing prices on the 0:09:28.760 --> 0:09:42.840 days must donated the securities. Earlier today, the SEC proposed 0:09:42.880 --> 0:09:46.599 expanding certain requirements to cover a range of assets, including 0:09:46.880 --> 0:09:50.400 virtual currencies. Bloomberg Shnali Bassek caught up with coin Bases 0:09:50.440 --> 0:09:53.960 General counsel and chief legal officer Paul Grell about how 0:09:54.000 --> 0:10:00.040 these changes were impacked his company, coin Base cuse c 0:10:00.200 --> 0:10:03.720 Truck's company is a qualified custodian today, It was a 0:10:04.200 --> 0:10:07.800 qualified custodian yesterday, and it will remain a qualified custodian tomorrow. 0:10:08.080 --> 0:10:10.880 UM And the reason for that is that in many ways, 0:10:11.160 --> 0:10:15.319 coin bases operated exactly in accordance with these rules, and 0:10:15.360 --> 0:10:17.320 we think that's good for the industry, and we think 0:10:17.320 --> 0:10:22.040 that's good for consumers and investors. Against that, back draw, Paul, 0:10:22.080 --> 0:10:24.520 what do you make of these SEC share comments that 0:10:24.600 --> 0:10:30.360 investment advisors can't necessarily rely on platforms such as coin 0:10:30.400 --> 0:10:35.680 Base as qualified custodians. Well, I think that when it 0:10:35.679 --> 0:10:37.320 comes to coin But when it comes to coin Base, 0:10:37.440 --> 0:10:41.320 we've seen actually SEC officials explicitly recognized that UM coin 0:10:41.400 --> 0:10:45.079 based can and does operate operate as a qualified custodian 0:10:45.120 --> 0:10:48.480 in a safe, reliable manner that investors and consumers can 0:10:48.520 --> 0:10:51.520 have confidence in as for others, we think standards are 0:10:51.520 --> 0:10:54.920 a good thing. We think that UM investors and consumers 0:10:54.920 --> 0:10:57.920 have a right to understand that their assets are safe, 0:10:58.160 --> 0:11:00.319 that the standards are being followed by those charge with 0:11:00.360 --> 0:11:03.760 that responsibility. Are are those our standards that have been 0:11:03.840 --> 0:11:08.760 vetted by appropriate UH over overseers and regulators. So in 0:11:08.800 --> 0:11:10.760 a lot of ways, this is about bringing the rest 0:11:10.760 --> 0:11:12.960 of the industry up to the standard coin basis set 0:11:12.960 --> 0:11:16.360 for itself, and on balance, we think that's positive, Pa Paul. 0:11:16.360 --> 0:11:19.000 What does that then mean for something like international expansion? 0:11:19.120 --> 0:11:22.520 At the end of the day, UH, cryptocurrencies broadly are 0:11:22.760 --> 0:11:26.880 an international prospect. How does that translate? They are? I mean, 0:11:26.920 --> 0:11:28.960 there's no question about it that UM. One of the 0:11:29.000 --> 0:11:32.560 things that I think is has has has accounted for 0:11:32.760 --> 0:11:34.800 LAD to so much of the interests in crypto is 0:11:34.800 --> 0:11:39.120 it's borderless nature. But the factor remains that each jurisdiction 0:11:39.280 --> 0:11:41.800 has its own rules, and coin base of course follows 0:11:41.840 --> 0:11:46.040 those rules UM in to the strict letter of the law. UM. 0:11:46.880 --> 0:11:49.640 The thing is though, that for UM, for many in 0:11:49.720 --> 0:11:54.280 crypto UM, the options to operate are are truly international. 0:11:54.400 --> 0:11:56.839 What that means is that the United States needs to 0:11:57.160 --> 0:12:01.000 understand that um its standards are in some ways, uh 0:12:01.600 --> 0:12:03.800 competing against those of the rest of the world, and 0:12:03.840 --> 0:12:05.960 so yes, we always want to make sure that investors 0:12:05.960 --> 0:12:08.320 and consumers are protected. Yes, we want to make sure 0:12:08.320 --> 0:12:11.280 that those standards are clear. But it's also important to 0:12:11.280 --> 0:12:13.800 strike the right balance between innovation on the one hand 0:12:13.840 --> 0:12:18.840 and protection on the other. That was Coin Basis Teeth 0:12:19.000 --> 0:12:21.680 legal officer Pool Grail. Let's get into it with Bloomberg 0:12:21.679 --> 0:12:24.280 Shnali Bassek, who is a part of that conversation that 0:12:24.320 --> 0:12:26.920 brought us that intoview. I guess the starting point is 0:12:26.920 --> 0:12:29.920 what does that mean for coin bases business? How does 0:12:29.960 --> 0:12:32.719 this complicate things for them going forward? Well, I think 0:12:32.760 --> 0:12:34.760 a couple of things are interesting here. Ed you have 0:12:34.920 --> 0:12:37.079 them clearing the record here and seeing them as a 0:12:37.160 --> 0:12:41.640 qualified custodian even under these new proposed rules that it's 0:12:41.720 --> 0:12:44.080 still unclear on how long they would take to become 0:12:44.559 --> 0:12:47.840 real rules given the feedback that they're getting. Overall, remember, 0:12:48.240 --> 0:12:51.120 even though you have coin Base here kind of applauding 0:12:51.160 --> 0:12:54.360 certain parts of this process here, coin base has such 0:12:54.480 --> 0:12:58.920 a nuanced relationship with the SEC they applaud certain parts 0:12:58.960 --> 0:13:00.920 of this rule making process us. But remember there are 0:13:00.960 --> 0:13:04.560 other things that they heavily dispute, such as some things 0:13:04.559 --> 0:13:07.760 that the SEC feels about staking. Even when it comes 0:13:07.800 --> 0:13:10.840 to this qualified custodian issue, remember coin based is one, 0:13:11.120 --> 0:13:13.400 you have other members of the crypto community a little 0:13:13.400 --> 0:13:16.679 more concerned. Jake Travinsky, for example, of the Blockchain Association 0:13:17.080 --> 0:13:20.640 voicing his frustrations online about how these proposed changes could 0:13:20.760 --> 0:13:24.160 violate the SEC's mission by making investors less safe and 0:13:24.200 --> 0:13:27.440 discouraging capital formation. And I have to say, when you 0:13:27.480 --> 0:13:29.880 look at the other SEC commissioners that have weighed in, 0:13:29.880 --> 0:13:33.880 there are a number that have also voiced concerns about 0:13:34.040 --> 0:13:37.240 the amount of qualified custodians. What happens outside of coin 0:13:37.320 --> 0:13:40.720 based in this industry, remember both because Bitcoin was up 0:13:40.800 --> 0:13:44.119 over the twenty four hour period as well as some positive, 0:13:44.120 --> 0:13:46.800 frankly regulatory news for coin based you saw the shares 0:13:46.840 --> 0:13:49.600 just completely ripping today. But again there are some things 0:13:49.600 --> 0:13:52.200 on the sidelines, like the staking issue, which remains to 0:13:52.240 --> 0:13:55.520 be unresolved. Let's go outside the world of coin based 0:13:55.600 --> 0:13:57.679 las because my husband's a manager over there, so I 0:13:57.720 --> 0:13:59.160 don't want to talk about it too much, but I'm 0:13:59.200 --> 0:14:03.640 interested in you'll world outside what other ripple effects, What 0:14:03.800 --> 0:14:06.880 is you know, e crypto at large being reading into 0:14:06.960 --> 0:14:10.040 the SEC crackdown? Is it where did the ripple effects 0:14:10.040 --> 0:14:12.200 go well outside of coin based Like I was saying, 0:14:12.200 --> 0:14:15.120 the reason this matters so much is because we've reported 0:14:15.160 --> 0:14:17.160 a couple of times this week that the SEC and 0:14:17.240 --> 0:14:20.120 other regulators have largely been whispering to the rest of 0:14:20.120 --> 0:14:23.360 the financial industry, is saying that listen, your relationship to 0:14:23.360 --> 0:14:25.800 crypto matters to you, and by the way, could open 0:14:25.840 --> 0:14:28.440 you up to more liabilities. So if you're a hedge fund, 0:14:28.440 --> 0:14:30.920 do you have to worry about how your assets are custody? 0:14:31.360 --> 0:14:34.640 It's interesting because let's see how the next twelve months 0:14:34.640 --> 0:14:37.120 play out, because as that forced these hedge funds like 0:14:37.120 --> 0:14:39.760 a Brevan Howard or others to start working with the 0:14:39.800 --> 0:14:42.320 likes of a coin base more, what happens to something 0:14:42.320 --> 0:14:45.760 like b n y Melon you have, for example, just 0:14:45.920 --> 0:14:47.560 a couple of days ago. Brian, I'm so from talking 0:14:47.560 --> 0:14:51.040 about how institutional interests has grown in this space, even 0:14:51.320 --> 0:14:55.640 despite some of the crypto winter issues. But what happens 0:14:55.680 --> 0:15:00.840 as the SEC brings down a stronger arm on the industry, 0:15:01.200 --> 0:15:03.960 do the traditional players start to get a little spook 0:15:04.000 --> 0:15:06.240 to the main question and to take it full circle 0:15:06.280 --> 0:15:09.280 back to why the SEC is so rankled about crypto 0:15:09.360 --> 0:15:11.560 and why in many ways people are staying acting with 0:15:11.640 --> 0:15:13.840 hindsight is because of what happened in the fd X. 0:15:14.240 --> 0:15:16.600 It's up to speeding. What's happening with the founder of 0:15:16.640 --> 0:15:18.080 f t X. Some I'm not freed has been all 0:15:18.080 --> 0:15:20.960 over the press today. What a day. So this has 0:15:20.960 --> 0:15:23.080 been weeks where we knew that Sam Bank been freed 0:15:23.120 --> 0:15:26.400 as well as his lawyers have been trying to keep 0:15:26.400 --> 0:15:29.200 the name of the guaranteurs behind this really record setting 0:15:29.200 --> 0:15:31.760 bail package, this bond that you wander fifty million dollar 0:15:31.880 --> 0:15:35.880 bond secret. But now we have the judge really saying 0:15:35.920 --> 0:15:40.440 that this doesn't apply to these particular instances because these 0:15:40.560 --> 0:15:43.480 guaranteurs decided to be involved in such a public case. 0:15:43.920 --> 0:15:47.400 These are two people that are very closely closely related 0:15:47.400 --> 0:15:49.760 to the parents of Sam Bank been freed. Remember this 0:15:49.840 --> 0:15:52.560 is Barbara Freed and Joseph Bankman, who were been Stamford 0:15:52.640 --> 0:15:55.960 law professors. Remember this is one of the people involved 0:15:55.960 --> 0:15:58.840 in the guarante guarante our program. Here's Larry Kramer, who 0:15:58.880 --> 0:16:02.320 was a Stanford lawd d mean a legal historian alongside 0:16:02.320 --> 0:16:03.960 Barbara Feed for a very long time. And if you 0:16:04.000 --> 0:16:06.200 take a look at the statement here, really he makes 0:16:06.240 --> 0:16:08.360 it very very personally. Has nothing to say about the 0:16:08.440 --> 0:16:12.000 legal matter itself. But his family has faced a harrowing 0:16:12.000 --> 0:16:14.920 battle with cancer, he says, and the Bankman Freed family 0:16:14.960 --> 0:16:17.560 has been the truest of friends, and so this is 0:16:17.600 --> 0:16:19.720 a very personal matter for him to show up for 0:16:19.720 --> 0:16:22.400 the Bankman Freed family and the time of need. According 0:16:22.400 --> 0:16:26.880 to his statement provided to us on Wednesday, Tomorrow, Thursday, 0:16:27.240 --> 0:16:30.280 Sam Bankman Freed does face court in New York again 0:16:30.440 --> 0:16:33.560 to discuss his bail conditions. Remember, there's been a lot 0:16:33.600 --> 0:16:37.040 of questions about how he's been communicating with people via 0:16:37.120 --> 0:16:41.160 signal and other means in the course of his house 0:16:41.280 --> 0:16:43.920 arrest here where he is living with his family on 0:16:44.200 --> 0:16:47.760 essentially what is uh land and property owned ultimately by 0:16:47.760 --> 0:16:50.240 Stanford as well. I'm sure you'll be giving us up 0:16:50.280 --> 0:16:52.320 to speed with all that happens in that court tomorrow, 0:16:52.320 --> 0:16:56.200 shnais we kind come Meanwhile, sticking with oversight, the CEOs 0:16:56.240 --> 0:16:59.200 of Apple, Metta, Amazon, Microsoft, well, they've all been subpoenaed 0:16:59.200 --> 0:17:02.120 by the House does are Committee chair Jim Jordan is 0:17:02.120 --> 0:17:05.560 seeking more information from the tech giants on content moderation 0:17:05.960 --> 0:17:08.399 that the subpoenas requires and a bit Shiye and new Jasseye, 0:17:08.440 --> 0:17:12.320 Tim Cookmark Zuckerberg, and Satyanadella to respond to the committee 0:17:12.400 --> 0:17:16.320 with documents and communications by Marche. We do not know 0:17:16.680 --> 0:17:20.639 if there will be an in person hearing. Ed Thank you, Karen. 0:17:20.640 --> 0:17:24.240 Are coming up. Apple pushing back it's long awaited debut 0:17:24.359 --> 0:17:27.760 of its mixed reality headset. We bring you the Bloomberg scoop. 0:17:28.280 --> 0:17:30.680 That's next before we head to break, I'm checking in 0:17:30.760 --> 0:17:34.080 on Roku cool Underway shares continues to push higher, up 0:17:34.080 --> 0:17:37.480 almost eleven percent, forecasting revenue of seven hundred million in 0:17:37.520 --> 0:17:41.280 the fiscal first quarter, above expectations. I'm looking at commentary 0:17:41.280 --> 0:17:44.119 on the call from Anthony Wood, CEO, Steve Loud and 0:17:44.160 --> 0:17:47.760 CFO saying two very tough year, but the outlook going 0:17:47.800 --> 0:17:50.280 forward a bit brighter and on that adjusted the bit 0:17:50.359 --> 0:17:54.440 dar basis they're moving towards positivity. Will continue to try 0:17:54.520 --> 0:18:16.920 that stop as the calls ongoing. This is Bloomberg, let's 0:18:16.920 --> 0:18:19.960 talk about Apple, and they're setback for the company's next 0:18:20.000 --> 0:18:22.399 big initiative. According to people familiar in the matter, that 0:18:22.480 --> 0:18:26.000 touch Jon is postponing that planned introduction of its first 0:18:26.200 --> 0:18:29.439 mixed reality headset. Let's go go to June instead of April, 0:18:29.680 --> 0:18:31.920 Bloomberg's Mark German. Of course he did. Of course he 0:18:32.000 --> 0:18:33.359 had the scoop for us. Just talk to us a 0:18:33.400 --> 0:18:36.840 little bit about well, what's having to put the brakes 0:18:36.880 --> 0:18:40.800 on here? Yeah, thank you so much for having me 0:18:40.840 --> 0:18:44.840 as always. So this is the latest incarnation of the 0:18:44.880 --> 0:18:48.760 status of Apple's long awaited mixed reality headset. They wanted 0:18:48.800 --> 0:18:51.440 to get it out the door in about this time 0:18:51.520 --> 0:18:53.199 last year. They pushed it back to the end of 0:18:53.280 --> 0:18:56.439 last year, than to January of this year, than to 0:18:56.600 --> 0:18:59.560 April of this year. Now it's being postponed yet again 0:19:00.160 --> 0:19:04.320 early June at the annual Worldwide Developers Conference, Right, that's 0:19:04.480 --> 0:19:07.280 ww d C. This makes a lot of sense. This 0:19:07.359 --> 0:19:11.800 is Apple's big showcase every early summer, late spring, where 0:19:11.800 --> 0:19:15.040 they introduced their next platforms, their next software updates for 0:19:15.119 --> 0:19:17.760 all the devices. So it makes sense to showcase this 0:19:17.880 --> 0:19:21.840 device there too. I get that. I get the marketing decision, 0:19:21.880 --> 0:19:24.320 but was that what drove it? According to our sources, 0:19:24.359 --> 0:19:26.280 did they basically say, you know what, let's wait for 0:19:26.320 --> 0:19:29.560 the big splash, or in looking at the products, was 0:19:29.600 --> 0:19:31.520 it just that there were issues, it wasn't ready. What 0:19:31.800 --> 0:19:34.560 have you found out? I'm sure it was a blend 0:19:34.560 --> 0:19:38.360 of both. Obviously, Apple's a very marketing and PR driven company, 0:19:38.600 --> 0:19:41.280 so I'm sure that had a big role to play 0:19:41.359 --> 0:19:45.040 in it. But this was mostly an engineering based decision. Uh. 0:19:45.080 --> 0:19:47.480 There were quite a few issues related to both hardware 0:19:47.520 --> 0:19:49.919 and software on the device, and maybe a little bit 0:19:49.960 --> 0:19:52.800 attributed to production as well, So it made sense to 0:19:52.840 --> 0:19:54.880 push it back, keeping the oven for a couple more 0:19:54.880 --> 0:19:59.199 months and really have that introduction down correctly and have 0:19:59.320 --> 0:20:02.520 that gap in between when the products introduced and released 0:20:03.040 --> 0:20:06.000 really stay in that initial time frame, right, because if 0:20:06.000 --> 0:20:09.200 they introduced it in April, you know, they probably would 0:20:09.240 --> 0:20:11.560 have to push back the release by a couple of 0:20:11.600 --> 0:20:13.800 months as well because there were still quite a few 0:20:13.800 --> 0:20:18.600 snags to to work through its pivoting from hardware to services. 0:20:18.640 --> 0:20:22.320 You had another story twenty four hours ago about Apple 0:20:22.480 --> 0:20:26.240 strategy when it comes to buy now, pay later, and 0:20:26.280 --> 0:20:30.320 it's changing how it makes decisions on basically lending to 0:20:30.440 --> 0:20:33.480 the consumer. What have you found out? So this is 0:20:33.520 --> 0:20:36.399 actually quite interesting. So Apple will be doing lending for 0:20:36.440 --> 0:20:38.959 the first time. They'll be actually giving out these loans 0:20:39.240 --> 0:20:42.320 up to about a thousand dollars for by now pay later. Uh. 0:20:42.359 --> 0:20:44.080 This would be very similar to what a firm and 0:20:44.160 --> 0:20:46.760 clarn on some of the other providers do. And so 0:20:46.800 --> 0:20:48.560 what Apple will be doing is they'll be using all 0:20:48.560 --> 0:20:51.320 that data and that history they have on individual customers 0:20:51.320 --> 0:20:55.600 to make those decisions to decide how much they want alone. Baby. 0:20:55.760 --> 0:20:58.080 You know they look at your Apple Pay right, how 0:20:58.080 --> 0:21:00.119 many cards you have on Apple Pay, where you move 0:21:00.160 --> 0:21:02.399 you're denied for an Apple card? How many apps do 0:21:02.400 --> 0:21:03.919 you buy on the App Store? How much have you 0:21:03.960 --> 0:21:08.320 spent and then paid are devices in the past Bloomberg 0:21:08.320 --> 0:21:11.480 Smart German, just ongoing terrific reporting on Apple. Thank you 0:21:11.840 --> 0:21:23.840 so much. If you think that that artificial intelligence is 0:21:23.840 --> 0:21:26.600 going to is going to influence the enterprise in a 0:21:26.640 --> 0:21:31.600 big way, then I think this represents a just a 0:21:31.720 --> 0:21:37.400