WEBVTT - AI Accelerators, AI PCs and GameStop's Surge 0:00:02.440 --> 0:00:09.960 Bloomberg Audio Studios, podcasts, radio news. 0:00:08.480 --> 0:00:13.720 From Bahard where Innovation, money and power Collie in Silicon Valley, NBN. 0:00:14.120 --> 0:00:18.120 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:32.320 --> 0:00:34.720 I'm Karen hide A, Bloomberg's World Headquarters in New York. 0:00:34.840 --> 0:00:38.440 Ed Ludlow, He's off today. This is Bloomberg Technology coming. 0:00:38.280 --> 0:00:38.920 Up in video. 0:00:39.000 --> 0:00:41.640 CEO Jason Wang says the company plans to upgrade its 0:00:41.680 --> 0:00:43.120 AI accelerators every year. 0:00:43.479 --> 0:00:44.720 We bring you the details. 0:00:44.360 --> 0:00:47.520 From Taiwan as he steals the limelight from AMD's Lisa 0:00:47.560 --> 0:00:50.400 sou Plus, we sit down with the CEO of Qualcom 0:00:50.400 --> 0:00:54.800 to discuss aipc's that's all amid the Computer Text conference 0:00:54.960 --> 0:00:58.200 over in Taiwan that kicks off and game Stop shares 0:00:58.320 --> 0:01:00.920 surge and new as Roaring Kitty unveils one hundred and 0:01:00.960 --> 0:01:04.560 sixteen million dollar position in the company. Well, that is 0:01:04.600 --> 0:01:06.920 so much more ahead. But first it's checking on these markets. 0:01:07.040 --> 0:01:09.200 It is a macro picture. It is a slow down 0:01:09.200 --> 0:01:12.360 in manufacturing that actually helps send stocks to the upside. 0:01:12.360 --> 0:01:15.240 And indeed, the borrowing market, the debt market ten year 0:01:15.319 --> 0:01:17.640 yeld carrying down by some nine basis points as some 0:01:17.680 --> 0:01:19.480 of the slowing in the economy seems to be good 0:01:19.520 --> 0:01:21.640 news for investors who want to see some ability for 0:01:21.640 --> 0:01:22.600 the FED to cut rates. 0:01:22.680 --> 0:01:24.600 Of course, we have some big labour data later in 0:01:24.640 --> 0:01:24.920 the week. 0:01:25.080 --> 0:01:26.560 Now is that coming off of its highs, we're up 0:01:26.640 --> 0:01:28.320 just a tenth of a percent. I want to shine 0:01:28.360 --> 0:01:29.920 a light on the parent company of the New York 0:01:29.959 --> 0:01:33.000 Stock Exchange here the Intercontinental Exchange off by three quarters 0:01:33.040 --> 0:01:35.160 a percent, actually hitting some of the lows of the day. 0:01:35.440 --> 0:01:38.120 That said, they seem to be having some technical glitches, 0:01:38.560 --> 0:01:41.679 as is currently being the technical phrase being used. But 0:01:41.920 --> 0:01:43.960 think of Berkshire, Hathaways, think of some of the stocks 0:01:43.959 --> 0:01:45.920 that have been impacted to the tune of a ninety 0:01:46.000 --> 0:01:48.600 nine percent drop. Just for a few seconds. We're currently 0:01:48.640 --> 0:01:52.240 off by eighteen percent. Will bring you updates throughout the hour. Meanwhile, 0:01:52.240 --> 0:01:53.440 I want to shine a line on some of the 0:01:53.440 --> 0:01:55.520 individual names that are on the move today. And look, 0:01:55.560 --> 0:01:57.960 GameStop has been where it's at. At one point, pre 0:01:58.080 --> 0:02:01.120 market was up more than one hundred percent. Now are 0:02:01.200 --> 0:02:05.160 up some thirty percent. As Roaring Kitty or deep value 0:02:05.440 --> 0:02:07.840 is is no one on Reddit took back to another 0:02:07.880 --> 0:02:10.040 form of social media, going on Reddit to post what 0:02:10.120 --> 0:02:12.760 seems to be one hundred and sixteen million dollar long 0:02:12.800 --> 0:02:14.679 position in game Stop, making him one of the top 0:02:14.720 --> 0:02:17.800 five holders of this name. The crowd goes world paramount 0:02:17.840 --> 0:02:20.840 up some seven percent as we understand that maybe we 0:02:20.880 --> 0:02:23.040 could be getting nearer that deal for sky Dance, as 0:02:23.120 --> 0:02:26.040 David Ellison offers a sweetened bid for some fifteen. 0:02:25.680 --> 0:02:26.280 Dollars a share. 0:02:26.280 --> 0:02:28.440 It's not at that level yet, so still some caution 0:02:28.480 --> 0:02:31.280 out there from investors and the socks off by half 0:02:31.320 --> 0:02:34.280 percentage point right now. AMD on the downside, but other 0:02:34.360 --> 0:02:37.160 chip names being galvanized by some of the announcements coming 0:02:37.160 --> 0:02:40.080 out of Taiwan. A big and a big set of announcements, 0:02:40.080 --> 0:02:45.920 but big key landmark focuses coming from both in Nvidio 0:02:46.080 --> 0:02:49.480 and indeed from AMD. The Computex trade show is fact underway. 0:02:49.840 --> 0:02:52.480 All the chip makers, the heavy hitters are present and 0:02:52.480 --> 0:02:55.560 in video CEO Joseph Wang basically took the stage last 0:02:55.639 --> 0:02:58.320 night when he stole the show somewhat introducing new tools 0:02:58.320 --> 0:02:59.079 and software models. 0:03:00.400 --> 0:03:03.760 Your future laptop, your future PC will become an AI. 0:03:04.440 --> 0:03:08.560 It'll be constantly helping you, assisting you in the background. 0:03:09.040 --> 0:03:13.400 The PC will also run applications that are enhanced by AI, 0:03:13.840 --> 0:03:20.639 and your PC will also host applications with digital humans 0:03:21.040 --> 0:03:23.040 that are AIS now. 0:03:23.080 --> 0:03:25.480 He announced a Blackwell Ultra chip set to debut in 0:03:25.480 --> 0:03:28.200 twenty twenty five, and the next generation platform another one 0:03:28.240 --> 0:03:32.040 in development called Rubin in twenty twenty six. Meanwhile, the 0:03:32.080 --> 0:03:34.519 actual keynote of the event was meant to be MDCO 0:03:34.560 --> 0:03:37.720 Lisa Sue. She announced the company will speed up the 0:03:37.800 --> 0:03:41.760 rollout of new AI processes too. Let's get the details 0:03:41.760 --> 0:03:43.800 of all of this bloombergs in. A woman is here 0:03:43.840 --> 0:03:46.920 to join us, and well, it felt as though Jensen 0:03:47.000 --> 0:03:51.440 Wang sort of organized himself an event a keynote speech, 0:03:51.880 --> 0:03:54.680 even though he was the keynote talker of the previous year. 0:03:55.000 --> 0:03:57.000 But it seems to be the pace of announcements that 0:03:57.040 --> 0:03:57.840 the investors like. 0:03:58.680 --> 0:04:01.400 Absolutely yes, I think it's going to be even trickier 0:04:01.400 --> 0:04:03.760 for tech reporters and editors such as myself to keep 0:04:03.760 --> 0:04:06.560 track of all these code names and project names. We're 0:04:06.600 --> 0:04:09.280 already talking Blackwell, Ultra and Reuben, even though the twenty 0:04:09.320 --> 0:04:12.920 twenty four ships are still forthcoming, so we're really the 0:04:13.040 --> 0:04:16.640 roadmap keeps getting longer and longer, and amb to its credit, 0:04:16.760 --> 0:04:19.680 is also committing to annual refresh cycles. 0:04:20.520 --> 0:04:22.919 Annual refresh seems to be what people want to see. 0:04:22.960 --> 0:04:26.240 What was it that maybe Lisa Sue lacked given the 0:04:26.279 --> 0:04:31.159 investors stop reaction that Jensen Wang is able to bring. 0:04:31.560 --> 0:04:35.440 Is it just that Nvidia is so dominant, particularly when 0:04:35.480 --> 0:04:36.839 it comes to day to them just right now? 0:04:37.320 --> 0:04:37.880 Absolutely? 0:04:37.960 --> 0:04:39.800 I mean, I think AMD is in a catch up 0:04:39.839 --> 0:04:42.839 position and Nvidia is the reigning leader in the AI space, 0:04:42.880 --> 0:04:45.640 and I don't know that that is changing anytime soon. 0:04:45.760 --> 0:04:48.240 I also think, interestingly, just on a personal note, this 0:04:48.400 --> 0:04:51.880 is a study in two different leadership styles. Huang is 0:04:51.920 --> 0:04:55.240 sort of seen as the embodiment of Nvidia itself, whereas 0:04:55.279 --> 0:04:58.359 Lisa Sue sort of surrounded herself by this really large 0:04:58.400 --> 0:05:02.159 collection of heavy hitter industry partners, from PC makers like 0:05:02.320 --> 0:05:05.320 HP and Lenovo to the Windows chief over at Microsoft. 0:05:06.680 --> 0:05:08.400 And not to denigrate that approach at all, but it 0:05:08.480 --> 0:05:12.320 is as really interesting to observe two very different approaches. 0:05:12.240 --> 0:05:16.040 Coming from two people who come from Taiwan, both speaking 0:05:16.040 --> 0:05:20.320 in Taiwan, in fact, are in some way related, which 0:05:20.440 --> 0:05:22.720 is an extraordinary thing to really consider the fact that 0:05:22.800 --> 0:05:26.320 Jensen Wang and Lisusu are vague cousins of one another. 0:05:26.680 --> 0:05:28.680 But what they're trying to steal. 0:05:29.040 --> 0:05:32.159 Is the limelight of artificial intelligence in the future. Is 0:05:32.240 --> 0:05:34.800 the AIPC managing to land. 0:05:34.600 --> 0:05:36.839 Because that seemed to also be where Lisa su was shining. 0:05:37.560 --> 0:05:39.960 I don't think just yet. And that's partly that they're 0:05:40.000 --> 0:05:43.479 not available, and partly that I don't think the companies 0:05:43.520 --> 0:05:47.000 involved can speak so clearly to what the software applications 0:05:47.160 --> 0:05:51.800 are exactly. So I think, rightfully or wrongly, it might 0:05:51.839 --> 0:05:55.720 seem to some people like a solution that's in need 0:05:55.760 --> 0:05:58.320 of a problem, and I don't know that that's going 0:05:58.320 --> 0:05:59.360 to be true in the long term. 0:05:59.400 --> 0:06:01.040 But I do think you've got these chips. 0:06:01.120 --> 0:06:04.960 They hold great promise. I don't think these software applications 0:06:04.960 --> 0:06:07.560 are as obvious. And meanwhile, I don't think Nvidia has 0:06:07.560 --> 0:06:10.200 to persuade anyone of the utility of its chips, whether 0:06:10.240 --> 0:06:13.080 the twenty twenty four chips, twenty twenty five, twenty six, etc. 0:06:13.520 --> 0:06:17.520 And always naming these with code names of well very 0:06:17.560 --> 0:06:20.599 prominent scientists, often diverse scientists, people of. 0:06:20.640 --> 0:06:22.920 Color with Blackwell or a female with Lubin. 0:06:23.040 --> 0:06:26.760 I'm interested in who wins from both, and there are 0:06:26.800 --> 0:06:31.640 suppliers who serve both in VIDIA and indeed AMD. 0:06:31.279 --> 0:06:34.039 With Taiwan Semi being the biggest, and actually their stock 0:06:34.120 --> 0:06:37.640 was up more this morning than even AMDs I noticed. 0:06:38.400 --> 0:06:40.640 And the fact that also, I mean, are we worrying 0:06:40.760 --> 0:06:43.200 about bottlenecks, because this seems to be a real focus, 0:06:43.200 --> 0:06:46.400 particularly some of the higher focus on memory. 0:06:47.080 --> 0:06:52.359 Nvidia did flick at that in their keynote yesterday, so 0:06:52.400 --> 0:06:54.160 I wouldn't say it's not a concern. I think it's 0:06:54.200 --> 0:06:57.440 been a strong concern, but in Nvidia is looking to 0:06:57.480 --> 0:07:02.520 assuage the public investors that memory won't be such a 0:07:02.520 --> 0:07:04.880 bottleneck going forward, particularly. 0:07:04.440 --> 0:07:07.000 If they're able to keep on promising these updates coming 0:07:07.040 --> 0:07:08.479 in twenty twenty five and twenty six. 0:07:08.920 --> 0:07:10.760 Great to have your take, Dana Welman. 0:07:11.000 --> 0:07:13.800 Bear with all what's happening in Taiwan, but not quite all, 0:07:13.840 --> 0:07:15.960 because we want to focus on another chip name, Qualcom's 0:07:16.040 --> 0:07:19.760 processes when they're now powering Microsoft and Dell's new aipcs 0:07:19.920 --> 0:07:22.080 as part of the company's years long effort to grab 0:07:22.080 --> 0:07:24.680 a foothold basically in the PC market. Please to say, 0:07:24.680 --> 0:07:26.560 our own ed Ludlow caught up with the Qualcom CEO 0:07:26.600 --> 0:07:30.000 Cristiano I'm on ahead of speaking at a computext conference 0:07:30.080 --> 0:07:30.920 in Taiwan this week. 0:07:31.040 --> 0:07:31.640 Just take a listen. 0:07:32.560 --> 0:07:34.200 So people are going to be able to not only 0:07:34.240 --> 0:07:37.040 have the best performance, not only have the ai use cage, 0:07:37.120 --> 0:07:40.640 not having a very small and thin laptop, but they're 0:07:40.680 --> 0:07:43.680 going to have battery life for everything they need to do. 0:07:43.720 --> 0:07:45.680 You're going to leave your charger at home. 0:07:47.640 --> 0:07:52.320 Christiano, from one technology nerd to another. When grandmothers all 0:07:52.360 --> 0:07:54.560 around the world go to the store and buy their 0:07:54.640 --> 0:07:58.800 first AIPC and they take it home and they try 0:07:58.840 --> 0:08:01.960 to plug in their print, will it work? 0:08:02.400 --> 0:08:04.840 Of course you will. So one of the things that 0:08:05.640 --> 0:08:08.840 it's important to understand the journey that we have been 0:08:09.240 --> 0:08:15.160 on Microsoft is it's a fundamental shift from Microsoft changing 0:08:15.200 --> 0:08:18.760 Windows from x eighty six to an ARM instruction set 0:08:19.160 --> 0:08:21.760 and it's changing into an AIPC. And part of what 0:08:21.800 --> 0:08:24.200 we have been doing is to bring the ecosystem along. 0:08:24.520 --> 0:08:26.680 Is not only the printers, it is not only the 0:08:26.760 --> 0:08:30.760 docking station, also the games. We've been working with Microsoft 0:08:30.800 --> 0:08:35.800 to have the top twelve hundred games optimized on the platform, 0:08:36.080 --> 0:08:39.400 and it's really about the future of the Windows ecosystem. 0:08:39.880 --> 0:08:41.880 So the thing to think about it is not only 0:08:41.920 --> 0:08:43.600 you'll be able to work for an old printer, but 0:08:43.679 --> 0:08:45.520 you'll be able to do things you were not able 0:08:45.559 --> 0:08:47.120 to do before with your old PC. 0:08:48.480 --> 0:08:53.040 Christiana, we recognize the following that snap Dragon Exley has. 0:08:53.280 --> 0:08:56.920 You can go on any social media platform. I see it. 0:08:57.000 --> 0:09:00.320 But Intel still sort of dominates the traditional set sales 0:09:00.400 --> 0:09:04.559 channels for PC. They've got their name on all the shelves. 0:09:05.120 --> 0:09:09.000 You know, Clowd cooms in a different part of its history. 0:09:09.040 --> 0:09:11.160 But do you think you can take them on on 0:09:11.240 --> 0:09:13.800 those sales channels the marketing spend the R and D 0:09:14.320 --> 0:09:15.760 where they're quite entrenched. 0:09:16.360 --> 0:09:19.360 Okay, So on the R and D I beg to differ. 0:09:19.559 --> 0:09:23.480 I think the performance leadership now is clearly within the 0:09:23.480 --> 0:09:28.400 Windows ecosystem and it's clearly worth accelete just looking on 0:09:28.720 --> 0:09:33.599 the CPU performance Orion's custom CPU developed by qualcoms the 0:09:33.720 --> 0:09:37.679 vested CPU out there for any personal computing, and then 0:09:37.760 --> 0:09:41.439 the NPU and EI engine it's only possible on a 0:09:41.520 --> 0:09:44.320 Qualcom platform. So I do beg to differ on the 0:09:44.440 --> 0:09:46.640 R and D. But let's just talk about the big question, 0:09:46.760 --> 0:09:49.320 which is it's a new market, it's a new channel 0:09:49.320 --> 0:09:52.400 for Qualcom. And I'll tell you what is different this time. 0:09:53.280 --> 0:09:58.000 There are two aspects. One aspect is consumers are more savvy, 0:09:58.200 --> 0:10:02.720 and consumers actually come from a phone. Actually, your most 0:10:02.800 --> 0:10:06.559 important purchase decision I will think today is your smartphone, 0:10:06.600 --> 0:10:08.960 and you have another knowledge coming from the phone. So 0:10:09.080 --> 0:10:13.880 stop Snapdragon is not something new to you. But the 0:10:13.920 --> 0:10:17.360 most important thing is exactly not that. Well, the most 0:10:17.440 --> 0:10:21.080 important thing when you usually see the incumbency position on 0:10:21.200 --> 0:10:25.880 PC is at the enterprise, but the enterprise actually has 0:10:26.080 --> 0:10:31.079 US and Microsoft one hundred percent aligne. Usually enterprises have 0:10:31.160 --> 0:10:34.400 been slower to adopt new version of Windows. But Microsoft 0:10:34.440 --> 0:10:38.720 actually is doing a great job with enterprises around the 0:10:38.720 --> 0:10:41.600 world to get them to embrace the Copilot in the 0:10:41.640 --> 0:10:45.920 Copilot Plus. So that's a big tailwind. The Microsoft is 0:10:46.000 --> 0:10:49.600 driving the enterprises into the future of AIPC. That's great 0:10:49.600 --> 0:10:53.040 news for Qualcom and that builds on the incredible platform 0:10:53.200 --> 0:10:54.600 with the Snapdragon accellete. 0:10:56.960 --> 0:11:00.319 Christiana, I'm on speaking with ED just last week. Up, 0:11:00.480 --> 0:11:03.559 we'll be joined by Kristin Smith, CEO Blockchain Association. We're 0:11:03.559 --> 0:11:06.160 going to be talking about crypto in the election, crypto 0:11:06.200 --> 0:11:06.800 in regulation. 0:11:07.720 --> 0:11:26.960 This is Bluemoe technology. Let's just talk about. 0:11:26.720 --> 0:11:29.439 Crypto and the lobby that is boosting its war Chester 0:11:29.480 --> 0:11:32.240 ahead of the US presidential and congressional elections in November 0:11:32.440 --> 0:11:35.120 Andreson Horowitz for example, Ripple another one that's just been 0:11:35.120 --> 0:11:37.880 announcing a donation of twenty five million dollars each that 0:11:37.960 --> 0:11:41.480 was just last week to the pro Cryptopac Fairshake, which 0:11:41.559 --> 0:11:43.880 aims to back candidates from both sides of the aisle 0:11:44.240 --> 0:11:47.920 will better represent the crypto industry's interests. Let's bring in 0:11:48.000 --> 0:11:50.439 someone who knows well what lobbying is like on the 0:11:50.440 --> 0:11:53.360 hell right now, Christi Smith, CEO Blockchain Association. Look at 0:11:53.400 --> 0:11:56.840 your members, including the sectors, leading investors, and companies in Kristin, 0:11:57.480 --> 0:12:01.760 is the lobbying landing all it feels to me given 0:12:01.800 --> 0:12:05.520 the action last week, that suddenly members of Congress are 0:12:05.559 --> 0:12:07.520 aligning themselves more with crypto. 0:12:08.840 --> 0:12:11.840 Yeah, no, great question, Caroline. I think it is clear 0:12:11.920 --> 0:12:15.080 that the month of May was a game changing month 0:12:15.200 --> 0:12:17.960 for the crypto industry. I think the industry has long 0:12:18.040 --> 0:12:22.440 felt that the SEC and other regulators really haven't been 0:12:22.559 --> 0:12:26.640 giving us a fair opportunity to work constructively to find 0:12:26.640 --> 0:12:29.680 the right kind of regulation, and the industry is upset. 0:12:29.720 --> 0:12:32.280 And I think over what we've seen over the past 0:12:32.600 --> 0:12:34.839 couple of years, and really just mostly in the past 0:12:34.880 --> 0:12:39.320 few months and weeks is a continued investment into the 0:12:39.400 --> 0:12:44.480 tools that can help bring more crypto forward policy makers 0:12:44.520 --> 0:12:47.840 into power and also constructively work to get the right 0:12:47.920 --> 0:12:51.000 kind of policies. So we've seen a tremendous amount of 0:12:51.000 --> 0:12:53.840 investment in the fair Shake pack. I think that, as 0:12:53.840 --> 0:12:56.800 you noted some very large investments over the past week, 0:12:57.080 --> 0:13:00.719 that is the largest industry pack out there of any industries. 0:13:00.760 --> 0:13:03.880 So obviously a wonderful tool for the industry. But I 0:13:03.920 --> 0:13:06.960 think more importantly what we're seeing is that individual crypto 0:13:07.200 --> 0:13:08.240 users are. 0:13:08.280 --> 0:13:09.600 Following these issues. 0:13:09.960 --> 0:13:13.520 Digital Currency Group did a poll with Harris X a 0:13:13.559 --> 0:13:16.440 couple of weeks ago that found one in five swing 0:13:16.480 --> 0:13:21.160 state voters consider crypto a major issue in the upcoming election, 0:13:21.480 --> 0:13:23.760 and I think what we're seeing is both at the 0:13:23.760 --> 0:13:27.000 presidential level and at the congressional level, that candidates and 0:13:27.040 --> 0:13:30.000 policymakers are seeing this and realizing that they need to 0:13:30.000 --> 0:13:33.360 be more responsive to working with a crypto industry to 0:13:33.360 --> 0:13:34.280 get better policy. 0:13:34.440 --> 0:13:36.199 But Christen, how then do. 0:13:36.160 --> 0:13:40.439 You push back on a discomfort? So basically you're buying 0:13:40.480 --> 0:13:43.200 a way to Congress listening to you, rather than it 0:13:43.320 --> 0:13:48.000 being coming from the users of crypto talking or wanting well. 0:13:47.840 --> 0:13:50.880 It is coming also though from the users of crypto, right, 0:13:50.960 --> 0:13:53.320 it is sort of a one two punch here. I 0:13:53.360 --> 0:13:56.040 think we've got, you know, the industry that is willing 0:13:56.120 --> 0:13:59.440 to put the investment in. But as I was saying before, 0:13:59.480 --> 0:14:03.800 we have individual voters that are writing their members of Congress, 0:14:03.840 --> 0:14:08.760 that are looking on congressional and presidential websites to see 0:14:08.760 --> 0:14:12.319 what does this candidate believe about crypto policy. You know, 0:14:12.400 --> 0:14:14.600 this is very unusual, right, Like we don't see bank 0:14:14.679 --> 0:14:17.199 customers going out and doing this, but we are seeing 0:14:17.200 --> 0:14:19.760 this in the crypto world. And it's because crypto is 0:14:19.760 --> 0:14:22.680 more than an industry. It is an ecosystem with users 0:14:22.720 --> 0:14:25.520 and creators and developers and a lot of independent people 0:14:25.560 --> 0:14:29.200 contributing to these networks. So, you know, we're very excited 0:14:29.240 --> 0:14:31.960 about this sort of newfound political power, at least I 0:14:31.960 --> 0:14:34.960 know I am as somebody who has seen both sides 0:14:34.960 --> 0:14:37.440 of it. But I have been telling people, you know, 0:14:37.480 --> 0:14:40.120 we have now gotten to like base camp of Mount Everest, 0:14:40.120 --> 0:14:41.800 and we need to get to the top of the summit. 0:14:41.840 --> 0:14:43.640 We have a long way to go. It's a hard 0:14:43.720 --> 0:14:46.520 journey ahead of us, but we're certainly in a much 0:14:46.520 --> 0:14:49.280 better position than we were even a couple of weeks ago. 0:14:49.600 --> 0:14:51.680 Is it a hot journey when it comes to the 0:14:51.720 --> 0:14:55.480 actual car and administration because we still had a veto, 0:14:55.680 --> 0:14:58.080 for example, coming from President Biden. When it comes to 0:14:58.400 --> 0:15:00.600 SAB one two one, can you just talk us through 0:15:00.840 --> 0:15:03.280 ultimately what SAB one to one was wanting to push for. 0:15:03.360 --> 0:15:07.880 It seemed to be well allowing wanting to allow more banks, 0:15:07.960 --> 0:15:14.040 institutional banks be able to offer crypto investments, but at 0:15:14.080 --> 0:15:15.920 the moment it's pretty costly for them to do so. 0:15:17.000 --> 0:15:18.640 Yeah, yeah, no, I think I think you said it 0:15:18.680 --> 0:15:21.840 exactly right. So Staff Accounting Bulletin one twenty one was 0:15:22.000 --> 0:15:24.080 a piece of guidance that came out of the SEC 0:15:24.920 --> 0:15:27.040 a couple of years ago. And what this is is 0:15:27.080 --> 0:15:30.560 it really puts in place an accounting policy that makes 0:15:30.560 --> 0:15:33.640 it impossible for banks to go into the business of 0:15:33.680 --> 0:15:37.240 custody and crypto you know, I think inherent in consumer 0:15:37.280 --> 0:15:41.160 protection is consumer choice, and we want to have more 0:15:41.600 --> 0:15:46.160 responsible institutions that have the ability to custody crypto assets, 0:15:46.600 --> 0:15:49.600 especially now that we not only have the spot Bitcoin 0:15:49.680 --> 0:15:53.280 of ETF, but we'll soon hopefully have an e ETF. 0:15:53.880 --> 0:15:56.480 You know, we want to have more custodian options out there, 0:15:56.560 --> 0:16:00.120 and so Congress realized that this policy was passed without 0:16:00.160 --> 0:16:04.640 any public input. The GAO viewed it as a rule 0:16:04.720 --> 0:16:08.080 which gave Congress the ability to use a special Congressional 0:16:08.120 --> 0:16:12.720 Review Act process in order to try to undo that rule. 0:16:13.320 --> 0:16:16.240 Both the House and Senate, in a bipartisan manner, voted 0:16:16.560 --> 0:16:20.479 to repeal the SAB one twenty one guidance, but unfortunately 0:16:21.000 --> 0:16:25.600 President Biden did sign that veto on Friday. So I think, 0:16:25.680 --> 0:16:27.400 you know, we've seen a lot of progress with the 0:16:27.440 --> 0:16:30.960 Biden administration and being a little bit more open minded 0:16:31.000 --> 0:16:34.160 towards working on crypto policy. But you know, without question, 0:16:34.280 --> 0:16:38.120 that veto was not received well within the crypto industry. 0:16:38.120 --> 0:16:41.800 In the crypto community, it's incredibly disappointing, and I still 0:16:41.800 --> 0:16:44.280 think we have some work to do with the administration. 0:16:45.320 --> 0:16:48.200 We want to thank you Christ Smiths a Rock Chane Association, 0:16:48.360 --> 0:16:51.560 really talking about how politics is infusing itself with crypto 0:16:51.680 --> 0:16:53.800 or vice versa, and let's just stick on politics for 0:16:53.880 --> 0:16:55.920 a moment. What's happening over the United Kingdom. 0:16:56.120 --> 0:16:56.920 Of course, he was. 0:16:56.880 --> 0:17:01.800 A key proponent of Brexit, of Britten exiting the European Union. 0:17:01.880 --> 0:17:04.240 Nigel Farage is now saying that he will stand as 0:17:04.240 --> 0:17:07.240 a candidate in the United Kingdom election, which of course 0:17:07.320 --> 0:17:09.960 is being fast tracked to this summer as it stands, 0:17:10.119 --> 0:17:12.720 far says he'll stand in Clacton on the coast of 0:17:12.960 --> 0:17:16.160 Essex and ultimately he's standing for a candidate in the 0:17:16.240 --> 0:17:20.240 UK election, so wanting to once again become a member 0:17:20.240 --> 0:17:23.080 of Parliament as it stands, So who was of course 0:17:23.160 --> 0:17:24.200 a Brexit champion. 0:17:24.359 --> 0:17:34.119 And we'll bring you more on that time now for 0:17:34.160 --> 0:17:34.640 talking tech. 0:17:34.640 --> 0:17:37.200 First up, online fashion retailer Sheen is set to file 0:17:37.240 --> 0:17:40.000 for an IPO in London as soon as this week. 0:17:40.040 --> 0:17:42.160 According to a person familiar with the matter, The offering 0:17:42.160 --> 0:17:44.439 could value the company as much as sixty four billion 0:17:44.480 --> 0:17:47.840 dollars and could become one of the UK's biggest IPOs ever. 0:17:48.240 --> 0:17:51.040 Bloombernus reported in February that Sheen was actively looking at 0:17:51.080 --> 0:17:54.280 London after it judged it unlikely that the SEC would 0:17:54.280 --> 0:17:57.600 approve in New York initial public offering. Meanwhile, shares a 0:17:57.640 --> 0:18:00.720 GameStop are surging after the redded account that fueled the 0:18:00.720 --> 0:18:03.440 twenty twenty one means stock Mania posted what appears to 0:18:03.480 --> 0:18:05.480 be one hundred and sixteen million dollar position in the 0:18:05.520 --> 0:18:08.920 retailer In a screenshot, the account operated by Keith Gill 0:18:09.240 --> 0:18:11.320 showed a stake of five million shares at twenty one 0:18:11.359 --> 0:18:14.119 dollars twenty seven a piece, positioning Gill at one of 0:18:14.160 --> 0:18:15.639 the company's five biggest investors. 0:18:15.680 --> 0:18:16.600 Will have more on that later. 0:18:16.880 --> 0:18:20.080 Meanwhile, shares a Paramount are trading higher. Bloomberg News has 0:18:20.119 --> 0:18:22.919 learned that the movie producer David Ellison's latest offer for 0:18:22.960 --> 0:18:26.320 Paramount Global includes an option for non voting shareholders to 0:18:26.359 --> 0:18:28.760 cash out on a portion of their stock for about 0:18:28.760 --> 0:18:31.560 fifteen dollars a share. The cash payout is the latest 0:18:31.560 --> 0:18:34.000 attempt by Ellison to basically sweeten the terms of a 0:18:34.040 --> 0:18:36.199 deal that he has faced opposition from some investors on. 0:18:36.520 --> 0:18:37.159 The offer is. 0:18:37.119 --> 0:18:40.720 Basically roughly twenty six percent premium to Friday's closing price 0:18:41.320 --> 0:18:44.520 and is only for some of the shares. For more 0:18:44.560 --> 0:18:47.640 on this story, were pleased to welcome Chris Palmery and look, 0:18:47.760 --> 0:18:49.960 is that why we haven't seen the shares immediately fling 0:18:49.960 --> 0:18:53.280 themselves two fifteen dollars for those known non voting ones. 0:18:53.359 --> 0:18:54.800 What is still the caution around it? 0:18:55.960 --> 0:18:57.120 Well, a people. 0:18:56.920 --> 0:18:58.320 Aren't going to be able to sell all of their 0:18:58.359 --> 0:19:02.160 shares at that price and for the rest of the company. 0:19:02.200 --> 0:19:06.480 There's still a lot of uncertainties overall uncertainties about the 0:19:06.560 --> 0:19:09.240 media business. But we know some of the points about 0:19:09.240 --> 0:19:12.359 this deal, but we really don't know everything. But the 0:19:12.400 --> 0:19:15.480 big picture here is this amounts to a giant takeover 0:19:15.600 --> 0:19:19.119 of this storied company. David Ellison will control not just 0:19:19.160 --> 0:19:21.520 the controlling shares of the company, but the majority of 0:19:21.520 --> 0:19:24.760 the stock and the business. Forty one years old, he's 0:19:24.800 --> 0:19:29.200 got a potentially long road ahead of him running this business. 0:19:29.640 --> 0:19:32.240 So that's kind of the big take here. 0:19:32.760 --> 0:19:34.080 He's not doing it alone. 0:19:34.160 --> 0:19:37.879 Redberg Capital there along with his father Larry Ellison of 0:19:37.880 --> 0:19:40.560 Oracle fame, that are putting up a lot of the 0:19:40.600 --> 0:19:41.120 cash here. 0:19:41.200 --> 0:19:43.040 Chris, I'm interested in the long term. 0:19:42.920 --> 0:19:46.280 Is that then Skydos gets folded into Paramount, some of 0:19:46.320 --> 0:19:47.240 the debt is paid off. 0:19:47.280 --> 0:19:49.240 But what's the future of this business look like. 0:19:50.480 --> 0:19:52.840 Well, that's kind of the next step that we've been asking. 0:19:52.840 --> 0:19:56.119 A lot of questions are of and we don't have 0:19:56.200 --> 0:19:59.920 answers entirely. We know that they're going to be making 0:20:00.119 --> 0:20:03.800 some changes. You know, there could be a deal for 0:20:03.880 --> 0:20:07.720 the Paramount Plus streaming service, a joint venture with Comcast 0:20:07.880 --> 0:20:11.240 or another streaming company. That's been a business that's losing 0:20:11.280 --> 0:20:14.240 a lot of money. You know, there could be some 0:20:14.280 --> 0:20:16.800 sales of other assets. That's something that has come up 0:20:17.440 --> 0:20:22.280 quite a lot. But I'm sure this will be positioned 0:20:22.920 --> 0:20:27.719 as David Ellison and his partners investing in the future 0:20:27.760 --> 0:20:30.040 of the content of paramounts. So there will be a 0:20:30.040 --> 0:20:32.800 lot of talk about movies and TV shows, you know, 0:20:32.920 --> 0:20:35.520 many of which you know we're familiar with, and one 0:20:35.600 --> 0:20:36.200 still to come. 0:20:37.040 --> 0:20:41.400 The holdouts, the value investors, the people who have been 0:20:41.440 --> 0:20:43.960 in this stock for a very long time and still 0:20:44.000 --> 0:20:45.119 need some persuading. 0:20:45.960 --> 0:20:47.280 What are they worried about here. 0:20:47.160 --> 0:20:52.159 Chris, massive dilution. So the Redstones are getting bought out 0:20:52.200 --> 0:20:54.400 at a premium. It might not has been as high 0:20:54.400 --> 0:20:56.400 as well as a while back, but it could be, 0:20:56.480 --> 0:20:59.679 you know, considerably higher than what this stock they have 0:20:59.760 --> 0:21:03.879 the voting A shares are trading at now, and so 0:21:03.960 --> 0:21:06.119 then everyone else will be able to get some of 0:21:06.160 --> 0:21:10.480 their money out, but are largely stuck with this business. 0:21:10.520 --> 0:21:13.000