Speaker 1: I'm Caroline Hyde and Bloomberg's world headquarters in New York,
Speaker 1: and I'med Ludlow in San Francisco. This is Bloomberg Technology
Speaker 1: coming up Biden towards a new TSMC plant as chipmakers
Speaker 1: double down on American made semiconductors, more on its impact
Speaker 1: on the tech sector as well as the subsidy costs
Speaker 1: and the benefits. Then Bloomberg has the exclusive on the
Speaker 1: price and target launch date for Apple's electric car and
Speaker 1: Robin hood through retirement. Why the investing app is rolling
Speaker 1: out an i RA a feature for users will discuss
Speaker 1: that and user activity in the wake of the tech
Speaker 1: stock downturn with the chief brokerage officer. When first we're
Speaker 1: looking very closely what's happening in the Arizona Desert, the
Speaker 1: v I P list that's gathered there to witness the
Speaker 1: unveiling of T S M C S plans for the
Speaker 1: future to onshore manufacturing semi conductors, where that didn't help
Speaker 1: stocks at all. You look across the Philadelphia Semiconductor Index,
Speaker 1: all of those names that are president at that event
Speaker 1: involved are actually with some of the biggest percentage decliners
Speaker 1: and points drags on the socks. But generally speaking, as
Speaker 1: I look across the cull side, they're pretty optimistic. Optimistic.
Speaker 1: Care about what this means for the sector and domestic
Speaker 1: manufacturing going forward. What's the costs though, that's the key
Speaker 1: question for me ed, What about the substies? How much
Speaker 1: does end up being an economic benefit to the US
Speaker 1: in general. We just heard from President Biden and indeed
Speaker 1: some key CEO such as Apples leader Tim Cook, they
Speaker 1: were at that new plant that you speak of, t
Speaker 1: SMCS plant in Arizona, and of course we expect the
Speaker 1: company to now be announcing a cool forty billion dollars
Speaker 1: in terms of US based investment, and it plans to build,
Speaker 1: of course, the second facility. Here's some't what Tim Cook
Speaker 1: told the crowd. As many of you know, we work
Speaker 1: with tears m C to manufacture the chips that helped
Speaker 1: power our products all over the world, and we look
Speaker 1: forward to expanding this work in the years to come
Speaker 1: as t s MC forms new and deeper roots in America.
Speaker 1: When you stop and think about it, it's extraordinary what
Speaker 1: chip technology can achieve, and now, thanks to the hard
Speaker 1: work of so many people, these chips can be proudly
Speaker 1: stamped made in America. There was a big pr event
Speaker 1: in king our Chief Sinnekin and residents some places say
Speaker 1: joins US. Now the lineup of Britsk as ever bigger
Speaker 1: and I want your take care because what are this
Speaker 1: numbers that stood out to me was actually from a
Speaker 1: global production perspective, this is pretty small for t SMC.
Speaker 1: How big a deal is this actually for the US
Speaker 1: and for supply chains? I mean, it really depends on
Speaker 1: how you slice it. If you slice it in the
Speaker 1: terms you just gave, it's not really that big at all.
Speaker 1: This is a relatively modest size plant t SMC. Of
Speaker 1: course it's going to grow, but even if it grows
Speaker 1: to you know, the published full potential, we're looking at
Speaker 1: way less than ten percent of T S M T
Speaker 1: S overall production. And therefore it's it's it's a start,
Speaker 1: and that's probably the best way to describe it in
Speaker 1: terms of distributing that supply chain and bringing it back
Speaker 1: to the US. A start, A start, of course that
Speaker 1: takes years to build and then produce. But talk to
Speaker 1: us a little bit about therefore we think the overall
Speaker 1: supply chain looks like in the US, how much we
Speaker 1: start to see this creep expan. Is TSMC going to
Speaker 1: be joined by others? We know that Intel and local
Speaker 1: providers are also beefing up production, but how much will
Speaker 1: we see a reduction in well dependence on Taiwan and China.
Speaker 1: I mean, there's a there's a huge set of pushes
Speaker 1: and pulls going on right now, and obviously what's going
Speaker 1: on in Arizona is the latest example. Arguably that the
Speaker 1: most poignant example. Tim Cook, who is the CEO of
Speaker 1: Apple for arguably the greatest reason is that he's really
Speaker 1: good at supply of that supply chain management. He understands
Speaker 1: that process. He understands how the electronics world works better
Speaker 1: than anybody else. Why is he there, wisely to sue there?
Speaker 1: Why is General lying? They're they're there because they want
Speaker 1: greater diversity in their supply chain. But that's not necessarily
Speaker 1: what TSMC wants. T SMC wants more efficiency. The way
Speaker 1: to have plans to be more efficient is to have
Speaker 1: them in the same place. There's a lot of pushing
Speaker 1: pulls here, and then of course you've got geopolitics slid
Speaker 1: on top of that as well. Ian we're talking about
Speaker 1: a gathering of the great and good of global technology
Speaker 1: in a tiny patch of desert in the state of Arizona.
Speaker 1: But there's also a technology story that this what they're building,
Speaker 1: they're actually all told ends up being obsolete versus what
Speaker 1: Taiwan's doing. A t s MC is doing in Taiwan,
Speaker 1: Can you explain to us the difference between the initial
Speaker 1: plant doing four nanometer doing three n anime and what
Speaker 1: that means in the greater scheme of things. Yeah, again,
Speaker 1: back to the geo politics and back to the push
Speaker 1: and pull. Originally, this plant was going to be five
Speaker 1: an anime, which is two or three generations out of
Speaker 1: date by the time it comes online. Taiwanese got pushed
Speaker 1: by Apple, by Nvidia, and all of the big customers.
Speaker 1: Come on, we want more than this, we want leaning edge.
Speaker 1: So they pushed it a little bit further forward, but
Speaker 1: it's still not going to be cutting edge because, as
Speaker 1: we understand it, ts and sees under pressure from their
Speaker 1: own government not to stray too far from the nest. They,
Speaker 1: you know, the government of Taiwan want that island to
Speaker 1: retain its its status as the premier location for semi
Speaker 1: conducted production in the world. So again we've got the
Speaker 1: pushes and pools going on there, bloombergs Ian King, thank
Speaker 1: you very much. So let's stick with it, and we're
Speaker 1: joined by Interest CEO Jennifer Bisigley. Interest uses software to
Speaker 1: help companies manage their supply chains and business relationships global.
Speaker 1: I think it's also fair to say you have about
Speaker 1: twenty five years of experience in globe supply chains assessing
Speaker 1: risk in the economy. You heard there what Caroline I
Speaker 1: and I were discussing with the in Is this a
Speaker 1: significant step forward to onshore domestic production here in the
Speaker 1: United States. Well, I think it's the great first step
Speaker 1: as Ian just mentioned. I think it solves two of
Speaker 1: the big areas where the investments are happening in supply chain.
Speaker 1: One is around manufacturing and logistics, which is where you
Speaker 1: see the establishments of plants in country near shoring frenshuring um.
Speaker 1: The second one is labor. You're gonna have a lot
Speaker 1: of jobs that come out of this, a lot of
Speaker 1: reskilling of labor, and that's been a large gap for
Speaker 1: the supply chain as well. On that point, President Biden,
Speaker 1: as we know, is there in Arizona. He's actually been
Speaker 1: speaking in the last hours. So let's take a listen
Speaker 1: to what he had to say. Folks. As we see
Speaker 1: here in Phoenix, the United States is a top destination
Speaker 1: for companies across the globe looking to make investments because
Speaker 1: we have a world class, highly skilled, committed workforce, union labor,
Speaker 1: world class skilled workforce. Is this a game changer for
Speaker 1: the United States role in global semiconductor manufacturing? From that perspective,
Speaker 1: I do think again, we were a big manufacturing entity
Speaker 1: back in the World War One world War two, and
Speaker 1: it left and you see a large part of that
Speaker 1: coming back, and there was a cry from the consumers,
Speaker 1: and I think that's what you saw Tim Cook another
Speaker 1: speaking to today. So again, all of this is a start.
Speaker 1: We're going to really have to see how it shakes out.
Speaker 1: I can tell you that the CEOs that we work
Speaker 1: with that are very focused on the transparency of the
Speaker 1: extended supply chain, are not just concerned about the finished
Speaker 1: goods manufacturing, which is what's happening in Arizona right now,
Speaker 1: but also where are the raw materials coming from? And
Speaker 1: those are some of the geopolitical concerns and pinch points
Speaker 1: that Ian King was just talking about. And of course
Speaker 1: this is geopolitics abound whether it's China, US. We also
Speaker 1: think of Europe and the implications of Russia, Ukraine. Net
Speaker 1: of course INTERROS does some great studies. You of course
Speaker 1: use artificial intelligence weaving within your reports, but I'm looking
Speaker 1: at you resilience report for example. Just talk to us
Speaker 1: about how the US is faring right now with its
Speaker 1: own resiliency when it comes to global supply chains visa
Speaker 1: v the UK, Islands, Europe, some other key countries. Well,
Speaker 1: I think globally, over the last three years, we really
Speaker 1: figured out that we designed our supply chains to be
Speaker 1: very fragile, very brittle, brittle and very just in time.
Speaker 1: And you hear about that a lot. And so whether
Speaker 1: it be the US, UK trying to unhook from China, Taiwan,
Speaker 1: trying to unhook from other places, Ukraine, Russia, we all
Speaker 1: really need to understand what countries and what suppliers were
Speaker 1: tied to and reliant on, and can we near shore
Speaker 1: Rea shore, do we have alternative sources? Right now here
Speaker 1: in the U s we're feeling shocks almost once a quarter,
Speaker 1: to the tune of a hundred and eighty two million
Speaker 1: dollars every time. Businesses simply can't remain profitable when that
Speaker 1: keeps happening, Jennifer, what we want to always bring our
Speaker 1: audience is WASS the investment of tunity, And it seems
Speaker 1: to me like there is quite a big one hand.
Speaker 1: Whether or not of course the USC s it is
Speaker 1: an investment in subsidies, whether some of the internal US
Speaker 1: tech companies invest in themselves in terms of R and D.
Speaker 1: But for you, what are you seeing in terms of
Speaker 1: the CEO as you talk to and investing in their
Speaker 1: own supply chains the technology that might be able to
Speaker 1: help it. Yes, there's four big lines of investments happening
Speaker 1: right now. The first is, as we were just talking about,
Speaker 1: is really around labor. How do I retrain people so
Speaker 1: I can have that skilled workforce to support the throughput
Speaker 1: that I need to create from a supply chain. The
Speaker 1: second is really around manufacturing those finished goods like you're
Speaker 1: seeing with the semiconductors right now, or logistics lines. The
Speaker 1: third is really where in terrorists fits. And this is
Speaker 1: really understanding the transparency and mapping and monitoring that global
Speaker 1: supply chain. So when the hits happen, when the interruption occurs,
Speaker 1: how do I preempt that so I can continue to operate.
Speaker 1: And the fourth and the one that we are seeing
Speaker 1: our customers really pull us into and see eos every
Speaker 1: time I have a conversation or asking how do I
Speaker 1: get closer to my suppliers to collaborate so that we
Speaker 1: can actually make our supply chain more resilient. Together, Jennifer,
Speaker 1: it's been great having some time with you. Thank you,
Speaker 1: Thank you to our CEO, Jennifer Bisgnin there, Bloomberg has
Speaker 1: learned Apple plans to release a one hundred thousand dollar
Speaker 1: car just a little later than expected. The iPhone maker
Speaker 1: has scaled back ambitious plans for its electric vehicle, but
Speaker 1: postponed the car'st target launched date to that according to sources,
Speaker 1: Bloomberg's Mark German broke that story and joins us. Now, Mark,
Speaker 1: what are the key details of what you've reported? So
Speaker 1: the biggest new detail we have is that Apple has
Speaker 1: scaled back from a level five to a level four car. Now,
Speaker 1: what does that mean? The original approach that Apple have
Speaker 1: been working on for the past couple of years was
Speaker 1: a fully autonomous car with no steering wheel, no pedals,
Speaker 1: essentially downgrading or maybe upgrading the driver to a passenger,
Speaker 1: someone who could basically chill acts in the car while
Speaker 1: it's driving, right, But they've downgraded that's the level four.
Speaker 1: Now what does that mean. That means you're going to
Speaker 1: get full autonomous, full self driving functionality, but only in
Speaker 1: certain areas, that being at least to start freeways and highways.
Speaker 1: So the idea of this Apple car operating on city streets,
Speaker 1: complex roads, or an inclement weather like snow or rain,
Speaker 1: that's not going to happen, at least in the near
Speaker 1: term after the launch, but maybe eventually as they expand it.
Speaker 1: The other detail, of course, is that delay you mentioned.
Speaker 1: They had been most previous, most recently targeting a launch
Speaker 1: in sometime. That's now about just talk to us as
Speaker 1: to why. I mean, we can all imagine what a
Speaker 1: herculean task this is to pivot from phones to cause
Speaker 1: the injection of efficiency, and indeed R and D there
Speaker 1: must be needed. But just why the delay here? So
Speaker 1: the delay is mostly because they have a fundamental shift
Speaker 1: going on with the project. Right, A lot of the interior,
Speaker 1: the underlying mechanics, the software, A lot of redesigning and
Speaker 1: re architecting needs to go on. Now for that fundamental
Speaker 1: shift from a level five to a level four. In
Speaker 1: terms of what's taking Apple so long on this car, Well,
Speaker 1: one thing is they still need a partner, right, They
Speaker 1: need a partner to develop the underlying what is called
Speaker 1: in the industry as a skateboard. Right, that's the base
Speaker 1: of the car, that's the steering and wheel system, that's
Speaker 1: the parts that connect to the steering wheel, underlying electronics,
Speaker 1: parts of the drive train, and of course the battery. Right.
Speaker 1: Drive trains are very important to this. Battery is obviously
Speaker 1: an ev very important to this. So you need to
Speaker 1: do that. But then let's talk about the self driving technology,
Speaker 1: full level five autonomous driving. That's a dream and I
Speaker 1: personally don't think and clearly Apple agrees that's something that's
Speaker 1: going to be realized any time in the near term.
Speaker 1: I think it's going to be at least twenty thirty years,
Speaker 1: if not even in our lifetime. Where you get full
Speaker 1: five or you can plug in where you're going and
Speaker 1: know you're going to get there safely with no issue.
Speaker 1: That's certainly a trend we're saying. You know, from legacy
Speaker 1: Auto right through to startups, you've been a busy man.
Speaker 1: The other big story from Apple today is about the
Speaker 1: app store they've basically overhauled pricing. What's the news there. Yeah,
Speaker 1: so Apple is trying to make the app Store a
Speaker 1: bit more interesting to developers, right. They do these little
Speaker 1: incremental pushes to show developers why the thirty percent fee
Speaker 1: or the fift fee in some cases is worthwhile. They
Speaker 1: want to show developers why the app Store will remain
Speaker 1: the best store for developers. Now. Today the app Store
Speaker 1: is the only way to get apps, but there are
Speaker 1: potential reasons, and there's some site to say that there
Speaker 1: maybe alternatives in the future where the sideloading, different rules
Speaker 1: created by governments, the upcoming regulations in Europe. So they
Speaker 1: have to keep improving the app Store to make it
Speaker 1: more interesting to developers in terms of the news today.
Speaker 1: Really two things when they're expanding pricing, So before they
Speaker 1: went from forty nine cents to a thousand dollars, now
Speaker 1: they're going from nine cents to ten thousand dollars. Those
Speaker 1: tiers above a thousand, those have to get approval from
Speaker 1: Apple before you can price an app or subscription at
Speaker 1: that price. Right. They don't want someone creating a video
Speaker 1: player for ten grand. Uh. The other thing is is
Speaker 1: now you're going to have easier ways to convert taxes
Speaker 1: and currency fluctuations will be easier to handle globally as well,
Speaker 1: given the app stores available in nearly two countries. Mark
Speaker 1: Scoop after Scoop, Well, thank you for making the time
Speaker 1: to come and bring them on the television to Mark
Speaker 1: m and as always our apple man. Meanwhile coming up, Well,
Speaker 1: the self proclaimed crypto capital in Miami is now filled
Speaker 1: with pretty unwelcome reminders of the f t X empire,
Speaker 1: but some true relievers they still have faith in the
Speaker 1: digital currency doting. We're going to discuss that next. This
Speaker 1: is Blomberg. I think for us, crypto was the slingshot
Speaker 1: in the David and Goliath story, right if if, if
Speaker 1: we are competing with someone who is bigger and stronger,
Speaker 1: we have to be smarter. So that was our hack
Speaker 1: on how we were going to become prominent in a
Speaker 1: increasingly technological world, an ecosystem. Couple of months ago, the
Speaker 1: Miami Mayor Frances Suarez on the city's push into crypto.
Speaker 1: But what was supposed to be kind of the hotspot
Speaker 1: for digital assets is now the site of trash bags
Speaker 1: full of f t X freebees. It's an amazing story,
Speaker 1: is doing brilliantly on Bloomberg today, on dot com and
Speaker 1: on the terminal. We want to bring in there for
Speaker 1: the Miami Bureau Chief of Blomberg Chief Philip Marquez. Philip,
Speaker 1: talk to us about what is occurring during the glitz,
Speaker 1: the glamor of what was happening in art bars all
Speaker 1: over in Miami. There were some trash bags, there were
Speaker 1: some freebes f t X that were quietly being handed out.
Speaker 1: Just talk to us about what's been being built, which
Speaker 1: was meant to be a celebration of Solana and its
Speaker 1: ecosystem and instead sort of a bit of a hit it. Well,
Speaker 1: I'd still what I tell you is that the Miami
Speaker 1: Croups of community is trying to move on the Miami Way,
Speaker 1: So it's trying to get the party going as fast
Speaker 1: as it can. After ft X and after the whole
Speaker 1: same bank Refertein, trying to leave that behind in the
Speaker 1: Salona spaces, I think, which is very symbolical of what happens.
Speaker 1: That Salona Embassy was supposed to be store and an
Speaker 1: education space for the blockchain Salana, and it had the
Speaker 1: first ever f X launch. So when the whole left
Speaker 1: X to baccle happened. They had to basically get rid
Speaker 1: of a lot of FEX related stuff. They had hundreds
Speaker 1: of T shirts, they had a Magnus Carlton signed poster
Speaker 1: for an FTX event, they had Miamiat jerseys, and all
Speaker 1: of that was hurried to the store in the back
Speaker 1: that I and another reporter, a Mandagordon, were happy enough
Speaker 1: to stumble upon and report on, which we think it
Speaker 1: was very symbolical of the way they're trying to leave
Speaker 1: everything about that behind Salana Embassy. It's over in the
Speaker 1: Windward area, which is also marrier of Miami. Just tell
Speaker 1: us a little bit about we heard there from of
Speaker 1: course the Miami mayor previously the focus that the building
Speaker 1: of this community that was meant to be based upon crypto,
Speaker 1: and in many ways the Miami heat Stadium is clearly
Speaker 1: evidence of that. Ft X abound with its money poured
Speaker 1: into the space, and now perhaps even that we're trying
Speaker 1: to take that back off the stadium, I'm interested in
Speaker 1: what therefore the mayor does now. Are they still all
Speaker 1: focused on crypto? Are they pivoting somewhat? Is traditional finance
Speaker 1: TRADIFI coming back to play. So basically, I think the
Speaker 1: mayor story has made a joke that I think it's
Speaker 1: it helps explains a little bit of the mood. When
Speaker 1: we asked him which name he would like to see
Speaker 1: up in the sailing next, he jokingly said, Citadel, which
Speaker 1: is the heating for our house? Can We've been founded.
Speaker 1: So I guess a lot of the hopes now hinge
Speaker 1: on the fact that traditional finance firms will be able
Speaker 1: to take up a little bit of the slack that
Speaker 1: crypto brought in and still keep the whole Walter it
Speaker 1: South moved to Miami momentum going on, there are some opportunities.
Speaker 1: I guess it's one way to look at it. You
Speaker 1: think about NBA Miami Heat, you think about the kind
Speaker 1: of I guess sorrow among some of the parties that
Speaker 1: for them, it's over what is the community doing to
Speaker 1: kind of make the city the broader area long term
Speaker 1: and mainstay for the crypto community. And I guess the
Speaker 1: venture capitalists that back it, well, I'd say part of
Speaker 1: the answer is party. So it's I think a very
Speaker 1: Miami answer. But I think they're trying to show that
Speaker 1: there's more to the community than just f jacks and
Speaker 1: some big mon freed that they're artists with the n
Speaker 1: F to crowd that they're actually go way above and
Speaker 1: beyond what I have to ex represented. So I think
Speaker 1: the last week on Mark Basil, what we saw were
Speaker 1: like several ralling cries in a way of come to Miami,
Speaker 1: the community is here, let's do it it. I think
Speaker 1: they're trying to separate what they call a bad actor
Speaker 1: from the technology and kind of like keep the technology going.
Speaker 1: Obviously there's a lot of difficulty in doing that because
Speaker 1: the funding is an a much scared for. But I
Speaker 1: think that's what they're trying to do in the city,
Speaker 1: trying to make sure that Miami is still hub the
Speaker 1: talents here, that the community is here, and that it's
Speaker 1: way larger than some Bagma Food and FTX thanks to
Speaker 1: Bloomberg's Miami bureau chief Felipe Markets there. I mean carry
Speaker 1: for me, the crypto community is something that we we
Speaker 1: go to social media's talk about. Right. It reminds me
Speaker 1: a lot about the meme stock movement that kind of
Speaker 1: went before it. These are not your institutional, legacy Wall
Speaker 1: Street names. They're everyday people who are kind of flooding
Speaker 1: on mass somewhere else too. As he said, party whoa
Speaker 1: they camp party, sell the Bitcoin conference. Apparently Ed it's
Speaker 1: inviting to celebrate Bitcoin Winter in Miami and apparently can
Speaker 1: get well passed for six thousand dollars partying aside, there
Speaker 1: are still people who want to build in the space.
Speaker 1: All right, well I'll put it on the calendar. Welcome
Speaker 1: back to blue Bow Technology and Caroline Hyde in New
Speaker 1: York alongside Ed Ludlow is out in San Francisco. And
Speaker 1: let's talk about robin Hood for a moment, because it
Speaker 1: is hoping to keep users through retirement. The app, popular
Speaker 1: with young traders, is offering it's twenty two million users
Speaker 1: in IRA a option with a one match now. Robin
Speaker 1: Hood says this is the first of its kind for
Speaker 1: a brokerage. Our pleased to welcome. Steve Kirk is robin
Speaker 1: Hood's chief brokerage officer. Plenty of experience across the space.
Speaker 1: And what before we get onto the fact that the
Speaker 1: markets have been falling, it's been a more tumultuous time
Speaker 1: for users on robin Hood. Why now introduce this sort
Speaker 1: of a product? How a human? How we shifting our
Speaker 1: perspective on trading on a day to day manner to
Speaker 1: trying to save for the long haul. Hair. Yes, and
Speaker 1: first of all, it's so nice to be here, thanks
Speaker 1: for having me. Um, it's really if you, if you
Speaker 1: think about it, it's the next evolution of the journey
Speaker 1: for the twenty three million young, diverse customers that robin
Speaker 1: Hood has brought into the marketplace. And Um, they're at
Speaker 1: a point now where they want us to grow with them,
Speaker 1: and growing with them means UM, putting forth something in
Speaker 1: the offering that helps them and it sends them to
Speaker 1: save on their retirement journey. And that's the launch of
Speaker 1: robin Hood Retirement, which, as as you said, the first
Speaker 1: of its first and only match for a retirement. Your
Speaker 1: entire career, you've been really focused on making investing basically accessible,
Speaker 1: whether it's over a TV, and now with the robin Hood,
Speaker 1: are you worried at this moment where we see fools
Speaker 1: in the market led by technology stocks for example, that
Speaker 1: we are so focused on that that puts off the
Speaker 1: people who enter the market during and as they stayed
Speaker 1: at home during COVID, they're going to be put off
Speaker 1: from building wealth from looking in a long time respective it. No,
Speaker 1: I actually, Caroline, I would actually say the opposite. Um,
Speaker 1: if you think about it. UM, Really, a lot of
Speaker 1: the customers here are an average age of about thirty
Speaker 1: two years old. Of them have never had a brokerage
Speaker 1: account before. So the importance of starting very early to
Speaker 1: save for retirement, UM, college kids, home, all the things
Speaker 1: that are critical. UM needs to start early. And by
Speaker 1: incenting them and providing a match, UM, it's it. It
Speaker 1: helps them in that journey because that I think they
Speaker 1: all understand the compounding that happens over time when you
Speaker 1: begin that journey early. I'd say that one other element
Speaker 1: that makes it a really good time to start is
Speaker 1: here we sit with the markets sort of as you said,
Speaker 1: moving up and down. UM time has been in his
Speaker 1: stork historic returns have told us, you know, if you
Speaker 1: invest for the long term and over the course of
Speaker 1: the last fifty years, UM, you will be rewarded if
Speaker 1: you just stay the course. And weren't sending people to
Speaker 1: do that, Steve, I know you only announced this very
Speaker 1: early on Tuesday morning, but what was the response then?
Speaker 1: You know, I'm thinking about what Caroline asked you. Is
Speaker 1: the user base of robin Hood sort of flooding in
Speaker 1: and saying, you know, I'm in my mid twenties and thirties.
Speaker 1: I'm going to make prudent financial decisions. Do you see
Speaker 1: what I'm saying? Is that user base going to be
Speaker 1: using this in large volumes to start with? Well, as
Speaker 1: as you pointed out, we rolled it out this morning. Um,
Speaker 1: we have a wait list in there are three three
Speaker 1: people on that wait list already. UM, we're rolling people
Speaker 1: off of the wait list and they're starting to open
Speaker 1: those accounts. We've rolled seven thousand people off that wait list.
Speaker 1: I think the reason why they're finding it's an appealing
Speaker 1: offering in the retirement space is because of the changing
Speaker 1: nature of the workforce. And what I mean by that
Speaker 1: is of the workers in America in the gig economy
Speaker 1: and that's growing at a sevent clip according to Pew.
Speaker 1: And of those they're looking for solutions. Sent said, we
Speaker 1: need a solution that is tailored to our retirement needs,
Speaker 1: not to ones of some people that have full time
Speaker 1: employment or maybe are working part time. And this accomplishes
Speaker 1: that for them because it's an ongoing match. It's not
Speaker 1: a one time matt It matches over the course of
Speaker 1: their investing journey. Steve kar and I is, you know,
Speaker 1: we want to get into the markets, but we're still
Speaker 1: trying to make sense of the fullout from f t
Speaker 1: X and and Sam Bankman Freed. Our understanding is the
Speaker 1: SPF held a state in robin Hood. In Hood, the
Speaker 1: TEKA through an entity with is not yet fallen into bankruptcy.
Speaker 1: Are you able to tell us whether any of the
Speaker 1: bankruptcy team or lawyers have been in touch with Robin
Speaker 1: heard about that. We have not had them in touch
Speaker 1: with us. Again, they think of it as another shareholder.
Speaker 1: You know, we have a lot of shareholders and they
Speaker 1: make investments in us. We don't really we're not actively
Speaker 1: involved in that. They are free to do that as
Speaker 1: they will, and we haven't really had many interactions with
Speaker 1: any of the bankruptcy attorneys. You'll like the point person
Speaker 1: for broker dealers. You're also, I'm sure fully aware of
Speaker 1: what the retail investor is currently feeling about using robin Hood.
Speaker 1: How are you How are those conversations going? How secure
Speaker 1: do people feel, particularly in the crypto offerings that you have? Yeah? Actually,
Speaker 1: uh so, we are regulated. We have been a regulated entity. Um,
Speaker 1: we have nineteen crypto coin assets. We do not have
Speaker 1: hundreds of crypto coin assets. We've done this in a real,
Speaker 1: really safety first manner and made sure that we've been
Speaker 1: as compliant as can be. So we're a net recipient
Speaker 1: of of volumes and deposits as a result of that.
Speaker 1: But I would also say, um, what the fallout is
Speaker 1: a blemish for the industry as a whole, so we
Speaker 1: do not view it as a positive thing UM. But
Speaker 1: we are definitely not intertwined and have no connectivity to
Speaker 1: either FTX or the counter parties. There hasn't changed the
Speaker 1: way which a're on folding products, like the fact that
Speaker 1: you're now focusing on people coming to your platform to
Speaker 1: save the measured focus. Are you thinking about moving away
Speaker 1: from crypto related offerings or is still the line up
Speaker 1: the product rollout exactly how it would have always looked. Well,
Speaker 1: I would say, um, it's not. The focus didn't change
Speaker 1: in a rapid manner. We've been working on the retirement
Speaker 1: offering for over a year. This has been a focus
Speaker 1: UM and something we've been working on for quite some time. UM.
Speaker 1: With respect to what we roll out, it's really driven
Speaker 1: by our customers and what they're interested in. There are
Speaker 1: still people who are big believers in the crypto space,
Speaker 1: albeit in in a different manner, and so we're going
Speaker 1: to provide them with what they want UM going forward.
Speaker 1: But as I said, we've been, we've been. We have
Speaker 1: not been a firm that has been UM. You know,
Speaker 1: we've been doing it as as regulatorily compliant as we can. Steve,
Speaker 1: thank you for spending some time talking us through it.
Speaker 1: Steve Quirk s course Robin Herd, chief brokerage officer, say well, meanwhile,
Speaker 1: well we're going to move on to some key news
Speaker 1: surrounding a few stories of matter today. Some have been
Speaker 1: swirling talk us. Yes, so a Monday, Meta said it
Speaker 1: might remove news posts from Facebook and Instagram. That's if
Speaker 1: Congress passes a new bill that would empower smaller news
Speaker 1: outlets snoop negotiate compensation from tech companies. The building question
Speaker 1: is the Journalism Competition and Preservation Act, and it's backers
Speaker 1: want it done before the end of this year. Meta
Speaker 1: argues that the bill disregards the value that it's social
Speaker 1: media platforms provide to amplify the reach of news pieces
Speaker 1: you see in those timelines. Meanwhile, of course, Meta shares
Speaker 1: also falling six point eight percent Tuesday, the most sens
Speaker 1: late October that after a report by The Wall Street
Speaker 1: Journal that privacy regulators at the European Union are ruling
Speaker 1: the Facebook parents should not require users to agree to
Speaker 1: personalized ads based on their online activity. We're talking about
Speaker 1: targeted ads. Of course, Meta can appeal the decision, but
Speaker 1: if it's upheld, it can make it a lot more
Speaker 1: difficult for ad based platforms like Meta to show users
Speaker 1: targeted ads, which is based on essentially, Caroline, what they're
Speaker 1: clicking on, the types of content that they're currently viewing.
Speaker 1: A lot currently being involved with Meta and a lot.
Speaker 1: We've got to go back to an end revolving crypto.
Speaker 1: We've just been talking about it with of course Steve
Speaker 1: Quirk over at Robin Hood. Let's delve into it with
Speaker 1: Crack and CEO. Next, Dave Ripley talking of crypto regulation,
Speaker 1: of layoffs, of proof of reserves, how is this space changing?
Speaker 1: Stit with us for it as a Bloomberg. Now, let's
Speaker 1: talk about the UK for a moment, because it's reportedly
Speaker 1: finalizing new rules to regulate the cryptocurrency sector now, according
Speaker 1: to the Financial Times, that includes guidelines on dealing with
Speaker 1: the collapse of companies, for example, and restrictions on product advertising.
Speaker 1: Now right, here in the US, the FTC is also
Speaker 1: following a suit also investigating crypto ferns over possible misconduct
Speaker 1: through advertisements for example. Now, remember back in March the
Speaker 1: UK regulators sent warning some one of fifty companies of
Speaker 1: a misleading crypto advertisements. And that's after Cracking and coin
Speaker 1: based ads were deemed misleading by the advertising authority months before.
Speaker 1: One of talk about the future of regulation, the future
Speaker 1: of restructuring in the space. So much more pleased to
Speaker 1: welcome to the show, Crack and CEO Dave Ripley. Dave,
Speaker 1: it is wonderful to have you here, and there is
Speaker 1: so much to talk about in the space. Just first
Speaker 1: and foremost talk about the new regulation that's being unfolded
Speaker 1: in the UK, particularly when it comes to adverts. And
Speaker 1: you've of course had some concerns there. You've been singled
Speaker 1: out in the UK alongside coin Mason some other companies
Speaker 1: to do with perhaps misleading ads. How ways changed at
Speaker 1: the moment. Yeah, So with regard to advertisement in the space, honestly,
Speaker 1: in a way we describe Cracking as approach to all
Speaker 1: things crypto is about responsible yet ambitious about the space.
Speaker 1: And you know we're actually regulated in the UK. We
Speaker 1: have an MTF license there and we work closely with
Speaker 1: the f c A uh and we have for quite
Speaker 1: some time, and so, uh, you know, we think, uh,
Speaker 1: you know, there there's a role for regulation, no doubt
Speaker 1: in crypto, just the same as other other financial services.
Speaker 1: And we work closely with regulators and and alterans both
Speaker 1: in the UK and the US. And in a way
Speaker 1: you've sort of been trying to self regulate, should I
Speaker 1: call it the talk of proof of reserves, the order
Speaker 1: you've been doing on yourselves. You've also been taken to
Speaker 1: Twitter and indeed so has Jesse been talking about at
Speaker 1: length the business models, the managing of margin risk for example,
Speaker 1: particularly key concerned following ft x is fallout. How are
Speaker 1: you looking to change your well transparency at least even
Speaker 1: if it's not the way in which you're doing businesses
Speaker 1: right now? Yeah, this is this is exactly it as
Speaker 1: I mentioned. I mean, we're we look to be a
Speaker 1: you know, ambitious yet responsible player in the in the space.
Speaker 1: And you know, the f t X this is truly
Speaker 1: a travesty for for customers and everyone that that was
Speaker 1: exposed to to f t X and Sam Bankman freed,
Speaker 1: I mean, he's nothing but a fraud ster. And uh,
Speaker 1: you know, we frankly have no place for these types
Speaker 1: of people in the cryptocurrency space. Approachect crack and takes
Speaker 1: absolutely we are we look to be both you know,
Speaker 1: ends parent with our customers, but also really invest deeply
Speaker 1: in security as well. And proof of reserves is a
Speaker 1: great example. We've done conducted this proof of reserves uh
Speaker 1: dating back some time and we conducted to this year already.
Speaker 1: It's a way for us to work with a third
Speaker 1: party auditor to validate both the customer liabilities and the
Speaker 1: reserves the assets that we hold on behalf of customers
Speaker 1: to back those liabilities, and also allows the customers a
Speaker 1: way to go and ensure that their own balances were
Speaker 1: included in the audit by going directly to the auditors.
Speaker 1: So we're really market leaders on this, uh, on this approach,
Speaker 1: and you know, frankly, we've seen a lot other peers, uh,
Speaker 1: you know, start to um start to follow cracking, following
Speaker 1: our footsteps, particularly following all the failures that we've we've
Speaker 1: seen recently with with companies that don't take the same
Speaker 1: approaches as cracking. Dave, I believe you referenced the word
Speaker 1: frauds to that. With regards to SPF, I just want
Speaker 1: to point out that while a number of regulatory bodies
Speaker 1: or agencies and looking into f t X and SPF,
Speaker 1: he has not yet been charged with any sort of fraud.
Speaker 1: So we just want to state that you've been impacted
Speaker 1: by the volatility and fallout associated with f t X,
Speaker 1: though you know you announced layoffs. I believe it at
Speaker 1: the end of November. What has the impact your business been. Yes, Look,
Speaker 1: the the crypto industry has definitely slowed down. We've seen, uh,
Speaker 1: you know, we saw fantastic growth uh in the later
Speaker 1: part of last year and throughout the earlier part of
Speaker 1: this year. But it's true that the market has definitely
Speaker 1: slowed down. So we um we have taken steps to again,
Speaker 1: you know, we're take them make the responsible choices for
Speaker 1: the industry and bring our our expenses in line with
Speaker 1: with revenues and ensure that you know, we're there for
Speaker 1: the long term. You know, the company has been around
Speaker 1: for a decade, over a decade actually, and we intend
Speaker 1: to be a round for many decades to come as well. Dave,
Speaker 1: I'll just point again that was your opinions on on
Speaker 1: SPF and no charges have been brought against him to
Speaker 1: do with fraud. Another big voice in your world all
Speaker 1: I guess tangentially linked to your world is Jamie Diamond.
Speaker 1: He is called crypto tokens a pet rock. What's your
Speaker 1: response to that. Yeah, I think it's just an example
Speaker 1: of someone that uh doesn't have a good grounding and
Speaker 1: understanding of technology, uh and probably not a very good
Speaker 1: understanding and innovation either. UM. It could also be you know, uh,
Speaker 1: you know, in incentives to um, you know, saying negative
Speaker 1: things about cryptocurrency as well. It could be a combination
Speaker 1: of of a lot of these different things. But you know, inevitably,
Speaker 1: when I find someone that's uh, you know that negative
Speaker 1: on cryptocurrency, it's it's either due to lack of understanding
Speaker 1: and information or you know, frankly an incentive that that
Speaker 1: put them at odds with with cryptocurrency. So, UM, we
Speaker 1: of course don't agree with that. You know, he's clearly
Speaker 1: clearly wrong on all fronts with regard to the potential
Speaker 1: for the technology and what it actually means. I mean,
Speaker 1: to be fair, he said, decentralized finance and blockchain are
Speaker 1: real and so a new technology, so we like the
Speaker 1: underlying technology. He's just often sort of been a cynic,
Speaker 1: shall we say, of the assets in the tradeable way.
Speaker 1: I'm interested, Dave, the people who, yes, deep synics of
Speaker 1: the space, like Larry Fink, but actually players who have
Speaker 1: embraced it wholeheartedly. Mike novograts, for example, saying that many
Speaker 1: players are going to be wiped out by this. Do
Speaker 1: you agree with that? What sort of number of players
Speaker 1: are left standing here? Yeah, it's a good point, and frankly,
Speaker 1: I don't know the specific numbers, but you know, it's
Speaker 1: clear there's going to be more contagion from from f
Speaker 1: t X. It's not entirely clear you know how many
Speaker 1: or who who is going to be impacted. We of
Speaker 1: course know that, you know, Genesis froze withdrawals. Recently, Black
Speaker 1: five cited impact directly from FTX, and is you know,
Speaker 1: moving forward with you know they've already shut down with drawals,
Speaker 1: and so you know the potential for more more companies
Speaker 1: to be impacted by this contagion. This kind of circular
Speaker 1: leverage out there significant. I mean, fortunately Cracking is not
Speaker 1: one of them. We're not impacted by this contagion. And
Speaker 1: don't carry counterparty risk, uh, to you know, to any
Speaker 1: of these other crypto companies. David. There's a lot of
Speaker 1: blame being thrown around. There's the joy of hindsight, of course,
Speaker 1: and people feeling that, Yeah, largely it's perhaps one bad
Speaker 1: player here. Maybe the media is in some way to blame.
Speaker 1: And we're looking internally at ourselves. You look at well,
Speaker 1: the blame of vcs, the money that was just swirling,
Speaker 1: the lack of corporate governance. What from your perspective, is
Speaker 1: actually changing in that respect? What do you think the
Speaker 1: money the deep pockets are asking themselves right now? And
Speaker 1: what about the corporate governance and companies such as yourself
Speaker 1: and now is being asked off? Yeah, so a number
Speaker 1: of different things. I mean hopefully this is in fact
Speaker 1: something that uh, you know, for investors, for customers, for individuals,
Speaker 1: that the silver lining here is that they are going
Speaker 1: to ask for for questions. You know, what we talk
Speaker 1: about is, hey, let's let's talk about proof not promises.
Speaker 1: And that's why we we have our our proof of
Speaker 1: reserves and that's why we we we make the information
Speaker 1: transparent to our to our customers in a in a
Speaker 1: detailed way. And so we hope that, you know, everyone
Speaker 1: in the cryptocurrency space, frankly financial services generally, uh, you know,
Speaker 1: ask these types of questions. Um, you know, another silver
Speaker 1: lining of this, uh, you know these events here is
Speaker 1: self custody. Right, it's a bitcoin and cryptocurrencies are the
Speaker 1: first time ever that there's been a way where you
Speaker 1: can actually hold securely hold and store your own assets
Speaker 1: and digital assets. And that's one of the fantastic things
Speaker 1: about a cryptocurrency and self custody is on the following uh,
Speaker 1: following these events, we see, you know, the blockchain itself
Speaker 1: is transparent. You can see that many many individuals companies
Speaker 1: are moving their assets to their own self custody, which
Speaker 1: is a fantastic things something that we've always been a
Speaker 1: supporter for. So I think there there is some silver
Speaker 1: lining here hopefully, Um, you know, the good players such
Speaker 1: as cracking. Um, you know, individuals will start to ask
Speaker 1: the questions that they should be asking of their their
Speaker 1: third parties and and potentially even looked to self custody
Speaker 1: on their own as well. All right, Kracking's incoming CEO,
Speaker 1: I guess Dave Ripley, thank you very much, time for
Speaker 1: going viral now and there's concerns around trackers like air tags.
Speaker 1: Apple has been sued by two women who say that
Speaker 1: air tags make it easy for stalkers to monitor victims.
Speaker 1: Attacks are meant for tracking personal possessions, of course, backpacks, keys, bikes,
Speaker 1: but put the advocates have warned, and police reports are verified.
Speaker 1: Air tax can also be used to track people without
Speaker 1: consent now. According to the lawsuit, and ex boyfriend of
Speaker 1: one of the women planting an air tag in the
Speaker 1: wheelwell of her calm was able to find out where
Speaker 1: she moved to avoid his harassment. The other woman said
Speaker 1: her estranged husband track their movements by placing the air
Speaker 1: tag in a child's backpack. Apple advertise the air tags
Speaker 1: as stalk approof when it was released in one shortening
Speaker 1: the time for notifications and learniting people of an unregistered
Speaker 1: air tag if it's moving with you. See more on
Speaker 1: social media for that ad. This is Blomberg