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Speaker 1: From the heart of where innovation, money and power collive

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Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with

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Speaker 1: Emily Jay. I'm Emily Changing in San Francisco, and this

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Speaker 1: is Bloomberg Technology coming up in the next hour of

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Speaker 1: robust US labor market spells bad news for financial markets.

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Speaker 1: Today's jobs report sent shares tumbling as investors predict more

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Speaker 1: rate hikes. We're going to talk about why tech is

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Speaker 1: in a particularly tough position plush. Chipmakers warn of a

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Speaker 1: major industry slowdown, sending tech shares even though we're the

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Speaker 1: biggest names from a m D to Samsung and Micron

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Speaker 1: are all saying the same thing. Demand is tumbling. Gonna

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Speaker 1: have more on that in a moment. And Facebook is

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Speaker 1: sending its own warning to users you may have been hacked.

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Speaker 1: Meta says one million user logins may have instolen compromised.

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Speaker 1: Later this hour, we're gonna talk to Meta security policy director.

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Speaker 1: Chip makers warning weekly that demand is faltering, this as

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Speaker 1: they face surging shipping and materials costs, and in the

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Speaker 1: latest sign of trouble, Samsung and a m D reporting

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Speaker 1: these disappointing results. Bloomberg's Ian King, our residentship expert with US. Now,

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Speaker 1: So Ian didn't we know demand was bad? Why are

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Speaker 1: we seeing such a strong reaction here? Absolutely? Right. We've

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Speaker 1: had companies going out there for a while and I

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Speaker 1: was saying, yeah, things things are getting bad. We've got

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Speaker 1: a lot of infantry. What happened yesterday provoked unless to

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Speaker 1: be writing with thoughts with expletives in the headlines. I mean,

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Speaker 1: it was really bad for ame d and ED actually

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Speaker 1: sold something a bit short. Yes, it's the biggest memoryship maker,

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Speaker 1: but it's also the world's biggest hip maker. Company like

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Speaker 1: that comes out and says, yeah, things are actually bad.

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Speaker 1: It's it's not just bad, but it's way worse than

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Speaker 1: we thought. So that's kind of recalibrating people's expectations. They're

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Speaker 1: no longer just looking for the bottom. They're back to

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Speaker 1: worrying about how about get it meantime, and you've got

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Speaker 1: the White House adding new restrictions on China's access to

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Speaker 1: US chip technology. Is that making things worse here? Absolutely?

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Speaker 1: That's a that's an ongoing concern because this isn't just

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Speaker 1: one isolated incident. This is like an incremental set of

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Speaker 1: increases of intensification in this dispute between the world's two

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Speaker 1: largest economies. And you know, if you're an investor out there,

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Speaker 1: you're thinking, well, what's going to happen next? And the

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Speaker 1: trend within these you know, so called security related national

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Speaker 1: security related measures is to intensify, is to broaden them,

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Speaker 1: and that's going to place greater restrictions on chipmakers that

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Speaker 1: want to do business in China. Talk to us a

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Speaker 1: little bit more about what's behind these new rules from

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Speaker 1: Washington and how you expect these two evolve. Well, just

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Speaker 1: to give you an example, we had a story out

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Speaker 1: earlier this week which had that Huawei, which is a

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Speaker 1: company that we know, a Chinese company that's been on

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Speaker 1: this sort of entity list in the US for a

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Speaker 1: long time, being cut off from US technology, it's actually

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Speaker 1: taking steps to work around that. So obviously there is

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Speaker 1: a concern in Washington. There are a lot of Washington

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Speaker 1: who are saying, look, we need to get tougher, We

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Speaker 1: need to do more and more to really choke off

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Speaker 1: China's ability. That just being better than China and technology

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Speaker 1: isn't good enough. We have to make sure that we

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Speaker 1: freeze China's technology and where multiple generations ahead and as

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Speaker 1: while driving this, So how do you think this is

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Speaker 1: going to impact the ongoing relationship between the US and

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Speaker 1: China as it pertains to chips. Yeah, I mean, we

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Speaker 1: haven't seen any reaction from Beijing yet, and I've heard

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Speaker 1: people say we're surprised that Beijing has been so restrained

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Speaker 1: so far. Fundly, China is the largest market for semiconductors.

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Speaker 1: If you're a US company, if you're a European company

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Speaker 1: in the industry, you have to be there. You have

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Speaker 1: to have those sales revenue to fuel your investing in

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Speaker 1: innovation to stay ahead. So it's a it's a very

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Speaker 1: difficult situation for Washington to sort of navigate that fine

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Speaker 1: line between cutting off China from what it doesn't want

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Speaker 1: it to have and also keeping the money flowing and

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Speaker 1: keeping US companies having the R and D edge and

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Speaker 1: staying on the leading edge in terms of the technical ability.

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Speaker 1: All Right, Ian King, who has of course covered the

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Speaker 1: chip industry for a couple of decades, and thank you

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Speaker 1: um for your expert insights today. Appreciate it. Meantime, Tesla's

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Speaker 1: all electric Chuck will roll out before the end of

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Speaker 1: the year. In a tweet, Elon Musk said production has

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Speaker 1: begun and the first deliveries will had to PepsiCo December one.

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Speaker 1: The Big Rig was first unveiled November, but the launch

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Speaker 1: delayed many times due to battery cell shortages and a

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Speaker 1: decision to focus on consumer models. As we discussed at

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Speaker 1: the top of the show, was a brutal day on

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Speaker 1: Wall Street after the September jobs report, the NASDAC one

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Speaker 1: plunging more than four percent as more severe fed rate

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Speaker 1: hikes are priced into the markets. Chip makers got crushed

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Speaker 1: after manufacturers warned of an industry wide slowdown and demand.

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Speaker 1: I want to bring in Sara const managing director at

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Speaker 1: Cleo Capital. So, Sarah, how alarming are these warnings from

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Speaker 1: chip makers in your view? I mean, the only chips

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Speaker 1: right now, anyone wants our potato, right, Like, this is

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Speaker 1: not good for chip makers. Uh, there's twin pressures here, right,

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Speaker 1: Certainly the weekend consumer demand for things like PCs, but

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Speaker 1: also you know, the increasing restrictions around selling to China

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Speaker 1: mean that a massive market is largely off limits. And

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Speaker 1: so that's also going to cause problems for the hardware

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Speaker 1: companies because you know, they're the ones who aren't buying

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Speaker 1: the chips, so they're not selling hardware. And I think

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Speaker 1: Apple's you know, lowered forecast for for some of the

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Speaker 1: models of its new iPhone is sort of an early

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Speaker 1: indicator of the trouble to come. So when you look

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Speaker 1: at other areas of technology, you know, their social media,

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Speaker 1: there's advertising, their streaming, you know, where do you see

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Speaker 1: other potential problem areas everywhere? Uh, you know, I think

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Speaker 1: that that it's just gonna be a tough you know quarter.

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Speaker 1: I think that that advertising. You know, we're seeing a

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Speaker 1: slump based on the waning consumer demand. So you know, Google, Pinterest, Snap, Meta,

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Speaker 1: they're all probably going to be in for a tough

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Speaker 1: holiday season. And you know, most of the rallies right

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Speaker 1: now in tech, they're not based on fundamentals. And and

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Speaker 1: the reality is that the fact show a really bleak

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Speaker 1: picture for all of these really high price, often unprofitable

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Speaker 1: companies that just have flown so high over the last

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Speaker 1: few years. And even now when their stock prices are

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Speaker 1: coming down, you look at you know, their their pe ratios,

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Speaker 1: they're still insane. The you're just still really expensive companies.

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Speaker 1: So how much more tech volatility are you preparing for?

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Speaker 1: Like a, are you preparing for this downturn to last

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Speaker 1: a good long time? Uh, yeah, I am a bear

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Speaker 1: preparing for a long cold wind. Her Um. I think

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Speaker 1: it's there's just not a lot to be bullish about

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Speaker 1: right now in the US, you know, with the FEDS

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Speaker 1: very hawkish stance even today about inflation, and you know,

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Speaker 1: the right the rate hikes are going to continue until

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Speaker 1: the moral improves, and that's probably not till mid delayed

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Speaker 1: twenty three, and then globally things are just way worse.

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Speaker 1: Right we are the bright spot right now globally. Uh

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Speaker 1: you know, the UK is in is in chaos, you know, Russia, China,

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Speaker 1: all of the problems that global central banks are having

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Speaker 1: because of the US dollar strength right now, there's just

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Speaker 1: a lot of problems and I think you have to

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Speaker 1: batten down the hatches, you know. I'm a fan of

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Speaker 1: selling rallies right now if you can get out with

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Speaker 1: a profit on something and and just buying the dips

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Speaker 1: really carefully, Like if you're passionate about a core business

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Speaker 1: and see a reasonable pe ratio and it's a historic

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Speaker 1: low for the company, maybe consider buying. But I'm not

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Speaker 1: even looking at like the fifty two week or year

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Speaker 1: to date right now numbers. I'm looking at the five

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Speaker 1: year charts and saying is this company you know where

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Speaker 1: it was before covid or is it still priced way

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Speaker 1: higher because of the bumpet got during the pandemic? So

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Speaker 1: how is this impacting your strategy and and other venture

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Speaker 1: capitalist strategy. I mean we've been talking about all this

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Speaker 1: dry powder that's probably stacking up on the sidelines with

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Speaker 1: nowhere to go. Yeah, So you know, I think M

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Speaker 1: and A is the new I p O for companies.

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Speaker 1: I think right now startups are are less focused on

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Speaker 1: an I p O. You know, we saw that a

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Speaker 1: lot of those tech I p o s aren't working. Um,

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Speaker 1: you know posh marks exit from the public markets was

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Speaker 1: was a big piece of that. You know, the Peloton

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Speaker 1: ceo flat out saying that you know, six more months

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Speaker 1: and they're gonna sell out and and you know go private.

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Speaker 1: Is it's a good indicator that that's staying public as

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Speaker 1: an unprofitable tech company right now is just tough. So

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Speaker 1: I think that we're going to see a lot more

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Speaker 1: late stage M and A activity and less bell ringing.

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Speaker 1: And you know, when it comes to the dry powder,

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Speaker 1: vcs have a lot of it, but they're sitting on it.

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Speaker 1: You know what I'm hearing from my peers at top

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Speaker 1: doctile funds, they're spending more time in Monday meetings triaging

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Speaker 1: their current portfolios than they are looking at new deals.

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Speaker 1: Then this is in large part because these you know,

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Speaker 1: these new deals founders are still asking for prices from

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Speaker 1: vcs who are very much in a recession mindset. And

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Speaker 1: I think until vcs can get into deals at prices

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Speaker 1: that better reflect this moment, a lot of my peers

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Speaker 1: are just sitting on the sideline and focusing on following

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Speaker 1: on the companies they're already on boards of. We're likely

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Speaker 1: to have a tough time in the coming months. So

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Speaker 1: talking about light stage M and I gotta ask your

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Speaker 1: thoughts on the latest in the elon Musk Twitter saga Twitter,

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Speaker 1: you know, holding Musk to the terms of the deal,

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Speaker 1: you know, at the price, not accepting anything lower, Musk

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Speaker 1: saying okay, I'll go through. I say, you know, what's

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Speaker 1: your take on what's happening here, whether or not this

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Speaker 1: deal is actually gonna happen. I mean, so many embarrassing

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Speaker 1: text messages, just so many, that's Saudie hac level in

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Speaker 1: Parrasine tech messages, right, And I think that the whole

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Speaker 1: situation is just getting to a point where, you know,

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Speaker 1: Ellen's displaying what seems to be a rare moment of

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Speaker 1: accepting reality and saying, look, I agreed to buy it,

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Speaker 1: so now I'm going to have to buy it, and

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Speaker 1: you know, I think that that's the best outcome for shareholders.

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Speaker 1: Will that be the best outcome for Twitter users, for

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Speaker 1: Twitter employees, I don't know, but at this point it

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Speaker 1: looks like that's what's going to happen, all right. Sarah Kunst,

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Speaker 1: Managing Director, clayo Capital love having you here, Sarah, Thank

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Speaker 1: you so much for joining us on this volatile Friday afternoon. Okay,

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Speaker 1: coming up, Disney and DraftKings and Bloomberg report about a

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Speaker 1: DraftKings ESPN deal in the works send shares higher. But

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Speaker 1: how does the family brand embrace sports gambling? Talk about

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Speaker 1: that next? This is Bloomberg. ESPN is nearing a large

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Speaker 1: new partnership with sports betting firm Draft Kings, a deal

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Speaker 1: which would pave the way for the media giant to

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Speaker 1: capitalize on the growing wave of legalized sports betting. Shares

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Speaker 1: of DraftKings spike this afternoon on this Bloomberg report. Disney

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Speaker 1: already has a stake in draft Kings here to discuss

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Speaker 1: our Bloomberg deals, Reporter Crystal Z. So, what do we

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Speaker 1: know about this agreement, Crystal? So, so far all we

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Speaker 1: know is that there is an intention for a large

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Speaker 1: partnership between draft Kings and ESPN, which is owned by Disney.

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Speaker 1: But how exactly is this deal going to be structured,

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Speaker 1: how is it going to be paid? We so we

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Speaker 1: don't have much detail on it. But it would be

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Speaker 1: a really really big step for ESPN to really take

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Speaker 1: advantage of that, legalizing sports betting in almost half of

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Speaker 1: the country now, and it will be a real cultural

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Speaker 1: shock for ESPN because Disney has this really wholesome um

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Speaker 1: image that they have and getting into sports betting it's

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Speaker 1: actually a really really big st Now there's been speculation

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Speaker 1: about an acquisition. Is this a step in that direction

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Speaker 1: or no? So because of that cultural difference, um, it

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Speaker 1: will right now, we're not hearing about outright acquisition. So

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Speaker 1: in order to do that, so Drafting here is the

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Speaker 1: license holder for sports betting, So if THESPN really want

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Speaker 1: to get into it in a really really big way,

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Speaker 1: it would make sense for them to buy. And also

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Speaker 1: note that Draft Kings stock price of trading around sixteen dollars,

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Speaker 1: but it's high. In March last year was around so

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Speaker 1: you could say that it's a really really cheap buy.

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Speaker 1: But for Disney shareholder to get over that wholesomeness reputation

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Speaker 1: of Disney, it will still be a big leap, and

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Speaker 1: we're not sure if that's uh, if they're ready to

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Speaker 1: make that step. Yes, So actually a lot of analysts

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Speaker 1: have dismissed the m and A speculation, but we shall see.

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Speaker 1: What about when it comes to, you know, other sports

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Speaker 1: scambling platforms More broadly, I feel like I've heard about draft,

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Speaker 1: We've heard some draft kings m N a UM specular

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Speaker 1: relation for a couple of years. So Draft king is

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Speaker 1: in a really really competitive space and they are constantly

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Speaker 1: at war with UM places like fanjuel, and they're all

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Speaker 1: offering these really really cheap discount or even giving UM

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Speaker 1: users free money just to get on their platform. So

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Speaker 1: there is a lot of room for consolidation. And with

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Speaker 1: this partnership with ESPN, even how it looks like it

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Speaker 1: will still be unclear. It could really emerge looking like

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Speaker 1: a new platform. It could look like an ESPN platform,

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Speaker 1: or it could look like an extra button on the

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Speaker 1: existing ESPN app so it could probably look like it

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Speaker 1: would look more crowded, um than than less. But you're right,

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Speaker 1: like there could be more deals. Draft Kings hasn't been

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Speaker 1: public for that long. They only go in public through

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Speaker 1: respect a year ish ago, so whether they are ready

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Speaker 1: to take on a big deal it's also um waiting

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Speaker 1: to be seen. And you know, obviously the stock price

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Speaker 1: not doing too well for them to sell equity would

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Speaker 1: also be really challenging. So there will be consolidation in

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Speaker 1: the space. We just don't know who are buying who

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Speaker 1: is selling it. And what's your take on the pace

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Speaker 1: of M and A and I p o s through

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Speaker 1: the end of the year, given this is your beat

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Speaker 1: and we've where you know, we just had a guest

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Speaker 1: who said she's bundling up for a long cold winter. Yeah,

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Speaker 1: she was just saying, how I M and A is

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Speaker 1: a new ip here, right, and that was absolutely true.

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Speaker 1: We haven't really seen many many I p o s

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Speaker 1: and usually this time post Labor Day pre Thanksgiving has

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Speaker 1: historically been the most popular time for I p O

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Speaker 1: and we haven't really seen any of them. And um,

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Speaker 1: there's always been speculation about you know, there have been

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Speaker 1: one or two companies that could still go public this year,

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Speaker 1: and it's been quiet, and you know M and A.

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Speaker 1: It's also em and is coming back in some way.

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Speaker 1: But financing has been extremely challenging. And if you look

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Speaker 1: at technology that are growthing, uh and not really generating

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Speaker 1: cash flow, those are not things that investors are liking

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Speaker 1: right now. So all know, if you're a growth company

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Speaker 1: that are looking to I p O or doing M

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Speaker 1: and A, it's still a really, really tough environment. So

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Speaker 1: um A lot of dealmakers are saying that we should

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Speaker 1: probably expect you're making to come back in three even

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Speaker 1: the second quarter and even the first quarter, and all

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Speaker 1: that would be market dependent obviously, so we will will

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Speaker 1: continue to tract to all right, the second quarter of

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Speaker 1: we'll looking towards that. Bloomberg's Crystal Z thank you so

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Speaker 1: much for staffing by and as we talk about media

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Speaker 1: companies looking for ways to cash in as more US

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Speaker 1: states legalized sports betting, Bloomberg The lineup with Damien sass

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Speaker 1: Hour and Kaylee Lines continues the conversation tonight, seven pm

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Speaker 1: New York Time. You don't want to miss it. Welcome

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Speaker 1: back to Bloomb're technology and Emily changing in San Francisco.

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Speaker 1: Let's get back to the markets and the big story

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Speaker 1: of the week, Ellen and his Twitter takeover potentially not

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Speaker 1: a done deal yet. Are at Ludlow has been looking

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Speaker 1: a little deeper here at what's the latest that we know? Yeah, well,

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Speaker 1: Friday was unusual when and so far there was absolutely

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Speaker 1: no news about the deal at all, which was a

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Speaker 1: massive relief for me and you because we haven't slept

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Speaker 1: for four days. But you would look at this monster

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Speaker 1: jump in Twitter shares from Tuesday when we had that

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Speaker 1: disclosure that Elon Musk had gone back to Twitter and

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Speaker 1: back to the original offer fifty tents a share. But

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Speaker 1: in the four sessions that have followed, the stock has

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Speaker 1: trickled lower again because there are concerns about the financing

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Speaker 1: element of this deal, how likely it is to happen.

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Speaker 1: And we still continue to look at the spread. Right,

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Speaker 1: if we bring up the spread chart, this is the

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Speaker 1: gap between that fifty four dollar twenty cents per share

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Speaker 1: offer and the current share price, and again it has

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Speaker 1: noticeably come down in recent sessions. The latest is, you know,

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Speaker 1: m is that Judge Kathleen St. Jude mccormicker of Delaware

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Speaker 1: Chancery Court has suspended, paused the trial until October and

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Speaker 1: told the two sides that they need to close the

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Speaker 1: deal by five pm on October. If they do not,

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Speaker 1: then we're heading to trial in November. And the market

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Speaker 1: is trying to pass what's actually happening behind the scenes.

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Speaker 1: In the broader context of market. It's a really interesting

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Speaker 1: stock to watch, is of course, Tesla. Tesla just had

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Speaker 1: its worst week since March of March. And it's not

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Speaker 1: just the idea that Elon Musk might have to sell

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Speaker 1: Tesla shares in order to fund some of the financing

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Speaker 1: to buy Twitter, but also this idea that there's key

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Speaker 1: man risk that will be distracted if he runs a

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Speaker 1: third company on top of Tesla and SpaceX. But the

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Speaker 1: gap between the SMP performance and Tesla, it's been a

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Speaker 1: real drag on a points basis for that broader index.

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Speaker 1: And it's not just, of course, the news cycle. Tesla

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Speaker 1: does trade at higher multiple and so is vulnerable to

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Speaker 1: the narrative around higher rates. But you know so much

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Speaker 1: going on at work here. You and I are not

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Speaker 1: going to Delaware on October seventeenth, But on a daily basis,

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Speaker 1: we continue to track this deal all right, I'd love

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Speaker 1: hope you get some sleep this weekend. Well, you might

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Speaker 1: have received an alert from Meta today saying you may

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Speaker 1: have logged onto Facebook from a malicious app. What does

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Speaker 1: that mean? Well, Matter has reported more than four hundred

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Speaker 1: credential theft malware apps to Google and Apple targeting mobile

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Speaker 1: users devices to steal their Facebook log and information. The

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Speaker 1: apps were disguised as things like photo editors, mobile games,

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Speaker 1: health trackers, and they can target more than just Facebook accounts.

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Speaker 1: For more on this, metas director of Threat Disruption, David

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Speaker 1: Agranovich joins me. Now, David, thank you so much for

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Speaker 1: joining us so talk to us about these apps, what happened,

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Speaker 1: and how people can protect themselves. Thanks so much for

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Speaker 1: having me, Emily, and appreciate the opportunity to talk about

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Speaker 1: this report. Today, we released some research into four hundred

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Speaker 1: malicious mobile applications. They were designed to steal Facebook log

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Speaker 1: and information. And the apps were listed on the Google

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Speaker 1: Play Store on Apple's App Store, and they would disguise

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Speaker 1: themselves as a variety of different things VPN services, business apps,

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Speaker 1: mobile games, different utilities for your phone to try and

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Speaker 1: trick people into downloading them. How do you know if

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Speaker 1: you've been affected, like, how can you tell? So? Because

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Speaker 1: these applications are available on the open Internet, it's no

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Speaker 1: single company can protect people alone. We also know that

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Speaker 1: these scammers constantly adapt to detection UM by app stores,

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Speaker 1: by researchers now here. We reported our findings to Apple

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Speaker 1: into Google, and as far as we know, all of

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Speaker 1: these applications have been taken down. But we also are

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Speaker 1: sending notifications to users on our platform who may have

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Speaker 1: been impacted by these applications. UM. Those notifications will include

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Speaker 1: some steps that people can take to protect their accounts

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Speaker 1: more effectively, as well as some tips for how to

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Speaker 1: spot these types of applications elsewhere on the Internet. Why

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Speaker 1: are you doing this now? I mean surely this has

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Speaker 1: happened before, right, So, our teams have been investigating this

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Speaker 1: type of malicious application activity for years. We're always looking

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Speaker 1: for malware or other efforts to steal people's credentials. UM,

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Speaker 1: but this particular p s A is the first time

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Speaker 1: we're releasing one of these kind of public service announcements.

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Speaker 1: And the idea is that in addition to working to

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Speaker 1: get these apps taken down, providing tools for people to

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Speaker 1: identify those apps, we felt it was important for people

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Speaker 1: to have tips that they can use both to keep

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Speaker 1: themselves safer on our platform and also to stay safe

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Speaker 1: across the internet, so that they know what to look

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Speaker 1: for if someone is trying to target them with an

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Speaker 1: application like this. Now, you also worked at the U. S. Government,

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Speaker 1: You led efforts to address foreign interference in democratic systems

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Speaker 1: and elections. We've got a midterm election coming up. What

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Speaker 1: are you most concerned about and how ready do you

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Speaker 1: think META is this time? So whenever there's an election,

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Speaker 1: we know we have to stay vigilant. Our teams are

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Speaker 1: continuing to monitor for any kind of threats on the

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Speaker 1: on our platform, and a good example of this would

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Speaker 1: be just last week, we released a report into two

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Speaker 1: influence operations, one from Russia one from China, um that

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Speaker 1: we caught very early, but in that report we included

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Speaker 1: a bunch of information about what they were doing, what

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Speaker 1: we had found, who we believe was behind the activity,

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Speaker 1: and in that case, like we did with the malicious

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Speaker 1: apps investing Asian today, we shared information with our partners

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Speaker 1: across the industry, with the U. S. Government, and with

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Speaker 1: a public to make sure people knew what to expect

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Speaker 1: what we were seeing um I spoke with Francis Hogan

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Speaker 1: earlier this week, the Facebook whistle blower, and she raised

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Speaker 1: some concerns about safety and security in social media, and

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Speaker 1: she used an interesting metaphor, take a listen to this.

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Speaker 1: Right now, we can't see behind the curtain of social media.

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Speaker 1: We were able to push for safety features and cars

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Speaker 1: were found in the partner of transportation, you know, reducing

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Speaker 1: the fatality from automobile automobile accents by effectively three and

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Speaker 1: a half times because we could actually control cars, you know,

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Speaker 1: we can crash test them. Right now, we can't do

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Speaker 1: any of those things for social media. We can't crash

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Speaker 1: test it, we can't confirm how it could be safer,

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Speaker 1: so we don't know what to demand. What do you

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Speaker 1: think of her thought there and do you think more

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Speaker 1: regulation would help? So I think that the security area

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Speaker 1: that my team focuses on is an area where we've

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Speaker 1: We've worked very hard to be transparent about our work.

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Speaker 1: We've reported on more than a hundred and fifty coordinated

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Speaker 1: in authentic behavior influence operations over the last several years

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Speaker 1: that originated from more than fifty different countries that operated

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Speaker 1: to more than thirty different languages. We've reported on on

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Speaker 1: a cyber espionage activity, hacking activity, both related to our

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Speaker 1: platform and more broadly across the Internet. I do think

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Speaker 1: that there's always more work to be done in the

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Speaker 1: security space, but I think that the more important work

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Speaker 1: here is that we are sharing information with our industry partners,

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Speaker 1: that we're sharing with governments were appropriate, and really importantly,

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Speaker 1: that we're sharing with the public, that we're publicizing these reports,

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Speaker 1: publicizing our findings, enabling the research into these types of

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Speaker 1: behaviors not just on our platform but across the Internet

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Speaker 1: in general. There's also some, you know, been some broader

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Speaker 1: questions lately about how much Meta is investing in not

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Speaker 1: just English language platforms. Obviously, you've got you know, tens

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Speaker 1: of thousands of people of people working on trust and

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Speaker 1: safety around the world. What can you tell us about

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Speaker 1: how much of that investment is focused on on languages

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Speaker 1: other than English. So our security work is global. Um

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Speaker 1: As I mentioned, we've taken down more than fifty of

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Speaker 1: these of these coordinated in authentic behavior operations around the world.

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Speaker 1: Those operations operated for more than fifty different countries in

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Speaker 1: more than thirty different languages, and so we're making sure

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Speaker 1: that We're protecting people on our platform wherever they happen

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Speaker 1: to be, from threats wherever they may happen to originate. Again,

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00:23:22,920 --> 00:23:25,439
Speaker 1: there's always more work to be done here, but by

431
00:23:25,480 --> 00:23:29,120
Speaker 1: focusing on on violating behaviors and threats across the platform,

432
00:23:29,480 --> 00:23:31,480
Speaker 1: we can do our of most to key people safe.

433
00:23:31,560 --> 00:23:34,160
Speaker 1: I know in the security world there's always something keeping

434
00:23:34,280 --> 00:23:36,239
Speaker 1: folks up at night. What's keeping you up at night?

435
00:23:36,560 --> 00:23:39,639
Speaker 1: Right now, we are laser focused on protecting elections around

436
00:23:39,640 --> 00:23:42,080
Speaker 1: the world. Of course, the U S midterms coming up

437
00:23:42,560 --> 00:23:46,560
Speaker 1: pretty soon, the Brazil elections that just happened. Our teams

438
00:23:46,560 --> 00:23:50,720
Speaker 1: are constantly monitoring for security threats related to those elections,

439
00:23:50,800 --> 00:23:54,080
Speaker 1: as well as broader global potential threats. This is probably

440
00:23:54,119 --> 00:23:56,320
Speaker 1: a conversation we can also have after the mid terms

441
00:23:56,320 --> 00:23:58,640
Speaker 1: about what we end up seeing. All right, I would

442
00:23:58,680 --> 00:24:01,960
Speaker 1: like that David Igranovich, met Director of Threat Disruption. Thank

443
00:24:02,040 --> 00:24:04,560
Speaker 1: you for stopping by. All right, Coming up, our next

444
00:24:04,600 --> 00:24:07,800
Speaker 1: guest just raised eleven million dollars despite the worst crypto

445
00:24:07,920 --> 00:24:10,800
Speaker 1: downturn in years. We're gonna talk about growing demand for

446
00:24:10,920 --> 00:24:36,479
Speaker 1: crypto accounting software. Next. This is Gloomberg, So I'm now

447
00:24:36,600 --> 00:24:40,120
Speaker 1: for crypto reporting. Today We're focusing on crypto accounting. After

448
00:24:40,320 --> 00:24:43,800
Speaker 1: tactics eleven million dollar funding around lead by x t

449
00:24:44,160 --> 00:24:47,600
Speaker 1: X Bloomberg, Shonali Bosik is in New York. Sheanale table.

450
00:24:48,040 --> 00:24:49,639
Speaker 1: Thank you so much, Emily. We're going to bring in

451
00:24:49,720 --> 00:24:53,000
Speaker 1: tactic founder and CEO and ask you because it's such

452
00:24:53,040 --> 00:24:55,720
Speaker 1: an interesting thing to see another company raised money in

453
00:24:55,840 --> 00:24:59,720
Speaker 1: this crypto downturn. But with so much volatility and crypto

454
00:24:59,800 --> 00:25:03,120
Speaker 1: mark it's your clients must have a hard time here

455
00:25:03,440 --> 00:25:06,200
Speaker 1: in terms of getting a handle on what it's worth

456
00:25:06,280 --> 00:25:08,520
Speaker 1: and how to account for it. So what is the

457
00:25:08,560 --> 00:25:12,400
Speaker 1: biggest challenge your clients are facing here amid the volatility

458
00:25:12,480 --> 00:25:15,680
Speaker 1: not just among Bitcoin but all sorts of Web three assets.

459
00:25:16,160 --> 00:25:19,080
Speaker 1: I think it's just the fragmentation of activity. We're seeing

460
00:25:19,160 --> 00:25:23,199
Speaker 1: people use different blockchains across different wallets and different currencies,

461
00:25:23,560 --> 00:25:25,880
Speaker 1: and it's just very difficult to get a holistic view

462
00:25:26,119 --> 00:25:29,600
Speaker 1: of the digital asset ecosystem. Well, it's interesting because it's

463
00:25:29,600 --> 00:25:32,040
Speaker 1: not just to your point digital assets. Currencies are also

464
00:25:32,119 --> 00:25:34,920
Speaker 1: fluctuating like crazy. So I mean, how does that kind

465
00:25:34,920 --> 00:25:37,720
Speaker 1: of compound the issues here? Is it harder now to

466
00:25:37,840 --> 00:25:40,640
Speaker 1: account for cryptocurrencies than it had been even a year ago?

467
00:25:40,920 --> 00:25:44,080
Speaker 1: For some reasons. I don't know that it's inherently more difficult.

468
00:25:44,280 --> 00:25:47,560
Speaker 1: I think it's inherently more important though, given the increased

469
00:25:47,600 --> 00:25:51,400
Speaker 1: regulatory scrutiny in the space. Well the regulatory scrutiny also,

470
00:25:51,440 --> 00:25:54,200
Speaker 1: I mean rules have changed, and you've seen other companies

471
00:25:54,320 --> 00:25:57,720
Speaker 1: like micro Strategy really mold to the accounting here of

472
00:25:57,800 --> 00:26:00,720
Speaker 1: crypto when it comes to bitcoin, So how might the

473
00:26:00,800 --> 00:26:03,320
Speaker 1: rules keep on changing That will make it different for

474
00:26:03,440 --> 00:26:06,800
Speaker 1: firms to have to mold to what the regulators ask

475
00:26:06,840 --> 00:26:08,800
Speaker 1: of them. I think what we're seeing actually is a

476
00:26:08,880 --> 00:26:12,800
Speaker 1: lot of activity in tech companies. So venture capital firms

477
00:26:12,880 --> 00:26:16,679
Speaker 1: remain extremely bullish on the potential applications of blockchain technology,

478
00:26:17,080 --> 00:26:20,560
Speaker 1: and that translates to more capital for tech companies. Now

479
00:26:20,760 --> 00:26:24,439
Speaker 1: we're seeing venture capital cool across all sectors and especially

480
00:26:24,480 --> 00:26:27,920
Speaker 1: in the crypto space. But venture firms still have a

481
00:26:28,000 --> 00:26:31,520
Speaker 1: lot of committed capital to deploy. They're definitely slowing the

482
00:26:31,560 --> 00:26:34,400
Speaker 1: pace there, but that means they're looking much more closely

483
00:26:34,600 --> 00:26:38,600
Speaker 1: at financials of crypto companies before they continue to fund them.

484
00:26:39,160 --> 00:26:42,800
Speaker 1: And right now, the landscape is so complicated and fragmented

485
00:26:42,880 --> 00:26:46,760
Speaker 1: that without automation and tools like tactic, it's increasingly difficult

486
00:26:46,800 --> 00:26:49,760
Speaker 1: for these companies to survive. Okay, So that's interesting because

487
00:26:49,800 --> 00:26:52,399
Speaker 1: you yourself obviously just we're kind of in the market

488
00:26:52,480 --> 00:26:55,880
Speaker 1: here when it came to fundraising. What are vcs asking

489
00:26:56,119 --> 00:26:59,240
Speaker 1: firms in the crypto worlds here to get more comfort

490
00:26:59,359 --> 00:27:01,480
Speaker 1: of what's going on there? I think they want to

491
00:27:02,160 --> 00:27:05,280
Speaker 1: a clear review of financials, the same way they would

492
00:27:05,320 --> 00:27:07,840
Speaker 1: for any traditional company. And right now, with a lot

493
00:27:07,920 --> 00:27:10,200
Speaker 1: of that revenue or a lot of that spend is

494
00:27:10,280 --> 00:27:12,600
Speaker 1: coming in the form of a token, it's much more

495
00:27:12,640 --> 00:27:15,320
Speaker 1: difficult to track than it is an ordinary US dollar.

496
00:27:16,200 --> 00:27:18,320
Speaker 1: So if it's in the form of a token, I'm wondering,

497
00:27:18,400 --> 00:27:21,680
Speaker 1: even for yourself, how are you taking money from clients?

498
00:27:21,760 --> 00:27:24,000
Speaker 1: How has your business been impacted in the crypto winter.

499
00:27:24,400 --> 00:27:27,800
Speaker 1: So we actually operate almost entirely in traditional US dollars

500
00:27:27,880 --> 00:27:31,480
Speaker 1: and and continue to use traditional products in that space,

501
00:27:31,840 --> 00:27:33,919
Speaker 1: and that's actually the way the bulk of our clients

502
00:27:34,000 --> 00:27:36,880
Speaker 1: operate for the post part. So we uh, we admittedly

503
00:27:36,960 --> 00:27:39,840
Speaker 1: continue to live in a fiat world. A private company

504
00:27:39,960 --> 00:27:43,320
Speaker 1: is going to pay for their office space to pay

505
00:27:43,359 --> 00:27:47,720
Speaker 1: their employee salaries in US dollars, but token spend and

506
00:27:47,920 --> 00:27:51,280
Speaker 1: various cryptocurrencies are going to be an increasing part of

507
00:27:51,359 --> 00:27:55,920
Speaker 1: their of their balance sheets as digital asset adoption continues. Now,

508
00:27:56,240 --> 00:27:58,280
Speaker 1: when you're looking at crypto, you're talking about tokens. You

509
00:27:58,359 --> 00:28:00,879
Speaker 1: already had kind of mentioned here the difficulties when it

510
00:28:00,960 --> 00:28:04,120
Speaker 1: comes to accounting for them, But what about other assets

511
00:28:04,200 --> 00:28:06,680
Speaker 1: and f t s, other types of Web three assets.

512
00:28:07,040 --> 00:28:09,240
Speaker 1: How do you think about dows in this world when

513
00:28:09,280 --> 00:28:12,879
Speaker 1: it comes to staying accountable to shareholders and regulators. I

514
00:28:12,960 --> 00:28:16,439
Speaker 1: think that's an extremely difficult question right now to answer,

515
00:28:16,560 --> 00:28:19,280
Speaker 1: and it's going to be unfolding in the next several months.

516
00:28:19,520 --> 00:28:23,560
Speaker 1: How we govern something that is theoretically decentralized and isn't

517
00:28:23,920 --> 00:28:27,800
Speaker 1: incorporated the way traditional companies, And you know, it's interesting.

518
00:28:27,840 --> 00:28:30,400
Speaker 1: Another thing that makes this even possible is your work

519
00:28:30,480 --> 00:28:33,280
Speaker 1: with other companies like coin base and custodians like that.

520
00:28:34,080 --> 00:28:38,360
Speaker 1: How much do you see your work growing with custody solutions,

521
00:28:38,480 --> 00:28:41,680
Speaker 1: both on the crypto side, if you will, and the

522
00:28:41,760 --> 00:28:44,880
Speaker 1: traditional finance side. I think custody solutions are going to

523
00:28:44,960 --> 00:28:47,560
Speaker 1: be absolutely crucial here, and that's why we're so excited

524
00:28:47,600 --> 00:28:50,320
Speaker 1: to be backed by FTX as a leader in the space.

525
00:28:50,600 --> 00:28:53,040
Speaker 1: We're back by coin base as well, because we acknowledge

526
00:28:53,080 --> 00:28:54,600
Speaker 1: that there are going to be a lot of players

527
00:28:54,720 --> 00:28:57,840
Speaker 1: in the ecosystem. Even though there's a longer term view

528
00:28:57,880 --> 00:28:59,760
Speaker 1: of a lot of players in the ecosystem, the reality

529
00:28:59,880 --> 00:29:02,680
Speaker 1: is it's a tough market now. And so if that's

530
00:29:02,720 --> 00:29:05,240
Speaker 1: the case, I know you said that you upbridden FIAT,

531
00:29:05,360 --> 00:29:08,560
Speaker 1: but how do you navigate your business through a time

532
00:29:08,600 --> 00:29:11,280
Speaker 1: when clients are also having a time tough time. I

533
00:29:11,360 --> 00:29:13,400
Speaker 1: think we're very lucky to work with people who have

534
00:29:13,680 --> 00:29:17,560
Speaker 1: long term time horizons. So consumer demand has admittedly cooled

535
00:29:17,640 --> 00:29:20,560
Speaker 1: for digital assets like n f T, s UM as

536
00:29:20,600 --> 00:29:23,640
Speaker 1: well as various tokens. Many retail investors who lost money

537
00:29:23,720 --> 00:29:26,800
Speaker 1: or we're definitely staying away from cryptocurrency. However, if you

538
00:29:26,840 --> 00:29:30,520
Speaker 1: look at financial institutions that have much longer time horizons,

539
00:29:30,760 --> 00:29:33,040
Speaker 1: they're thinking five to ten years out. They have not

540
00:29:33,240 --> 00:29:37,400
Speaker 1: abandoned cryptocurrency as an asset class. Well and Joska, thank

541
00:29:37,400 --> 00:29:39,080
Speaker 1: you so much for your time. That is a tactic

542
00:29:39,200 --> 00:29:42,120
Speaker 1: founder and CEO, thank you for walking this through the

543
00:29:42,160 --> 00:29:45,000
Speaker 1: plan here Emily, it's back to you, Shanali, thank you.

544
00:29:55,080 --> 00:29:57,240
Speaker 1: Carmakers and tech companies around the globe are facing the

545
00:29:57,320 --> 00:30:02,360
Speaker 1: prospect of an energy crisis and volatility in chip supply,

546
00:30:02,560 --> 00:30:04,960
Speaker 1: those pressures will continue. According to the Attack and EV

547
00:30:05,480 --> 00:30:10,560
Speaker 1: components Giant Bosh, Stephan her Tongue, the top executive at Bosh,

548
00:30:10,640 --> 00:30:13,000
Speaker 1: Folks with our own blood Low Cridy Gupta and Guy

549
00:30:13,120 --> 00:30:16,160
Speaker 1: Johnson on the European Clothes take a lesson. We're fighting

550
00:30:16,200 --> 00:30:19,640
Speaker 1: against that, that supply shortage. So what we will see

551
00:30:19,800 --> 00:30:22,000
Speaker 1: is even if the demand is slowing, and even if

552
00:30:22,080 --> 00:30:25,760
Speaker 1: some parts of production is probably reallocated, there is still

553
00:30:25,960 --> 00:30:28,520
Speaker 1: an over high demand and that will last four months.

554
00:30:28,880 --> 00:30:31,640
Speaker 1: So even if we see recessive motions in the whole

555
00:30:31,840 --> 00:30:34,840
Speaker 1: entire environment the automotive industry, especially in the car side,

556
00:30:34,880 --> 00:30:37,600
Speaker 1: we remain relatively stable for a certain amount of time.

557
00:30:37,920 --> 00:30:41,239
Speaker 1: Give me some granularity in the supply chain. Where are

558
00:30:41,280 --> 00:30:45,080
Speaker 1: the pain points still present? Where are things improving, and

559
00:30:45,200 --> 00:30:47,880
Speaker 1: especially when we think about energy and input costs, where

560
00:30:47,920 --> 00:30:52,120
Speaker 1: are you still fighting that supply chain inflation. Well, the

561
00:30:52,240 --> 00:30:54,200
Speaker 1: real problem with the supply chain is still with the

562
00:30:54,240 --> 00:30:57,080
Speaker 1: semi conductors, and that is special semi conductors which are

563
00:30:57,160 --> 00:30:59,880
Speaker 1: used for a motive. So these are lots, are large structures.

564
00:31:00,000 --> 00:31:03,320
Speaker 1: We're not talking about this and below, but rather a

565
00:31:03,400 --> 00:31:07,040
Speaker 1: hundred n or ninety or lowest is probably about fourty

566
00:31:07,120 --> 00:31:09,920
Speaker 1: or twenty three for the controllers we use, so that

567
00:31:10,040 --> 00:31:12,800
Speaker 1: still is short. Even if we see that slowing down

568
00:31:12,840 --> 00:31:15,880
Speaker 1: in the mobile phone market which unlocks capacity and semiconductors,

569
00:31:16,160 --> 00:31:20,040
Speaker 1: automotive supply will still be let's say, at least reasonable constraint.

570
00:31:20,160 --> 00:31:22,160
Speaker 1: Even for the next year. There will not be a

571
00:31:22,200 --> 00:31:24,600
Speaker 1: complete free speech, right. There will be always a bit

572
00:31:24,640 --> 00:31:28,160
Speaker 1: of restrainment, So there's always some fight for the components.

573
00:31:28,280 --> 00:31:31,760
Speaker 1: The energy part is definitely also a risk for those

574
00:31:31,840 --> 00:31:34,280
Speaker 1: parts of supply chain which are on the row material

575
00:31:34,360 --> 00:31:37,760
Speaker 1: side energy intensive. So here's for us more supplier question.

576
00:31:37,800 --> 00:31:40,320
Speaker 1: Where we are with our partners in tight control where

577
00:31:40,480 --> 00:31:44,240
Speaker 1: things going. What is unenterpricing, and obviously that makes things

578
00:31:44,320 --> 00:31:46,880
Speaker 1: not cheaper, it makes it more expensive. Well, what do

579
00:31:47,000 --> 00:31:50,920
Speaker 1: you make of the President Biden's big push to create

580
00:31:51,000 --> 00:31:53,360
Speaker 1: some of this manufacturing capacity right here in the United States.

581
00:31:53,400 --> 00:31:55,360
Speaker 1: It's a plan that's going to last at least a

582
00:31:55,440 --> 00:31:59,840
Speaker 1: decade to really get fully operational. What is that something

583
00:32:00,000 --> 00:32:03,280
Speaker 1: at your positioning for or preparing for. Well, that resonates

584
00:32:03,400 --> 00:32:05,680
Speaker 1: very much with us, right because we are if you

585
00:32:05,800 --> 00:32:08,760
Speaker 1: see us very strong in Europe, we're also reasonably strong

586
00:32:08,800 --> 00:32:11,840
Speaker 1: in Asia. But we see ourselves underrepresented here. We are

587
00:32:11,880 --> 00:32:14,920
Speaker 1: here since ninety six. In the North America. We are strong,

588
00:32:15,160 --> 00:32:17,600
Speaker 1: but we should be much stronger. So that resonates very

589
00:32:17,640 --> 00:32:19,920
Speaker 1: well and very happy that this policy comes into place.

590
00:32:20,320 --> 00:32:24,040
Speaker 1: We are expanding, we are growing, We're buying companies, were investing.

591
00:32:24,320 --> 00:32:26,240
Speaker 1: We just announced an investment in Enders and that we

592
00:32:26,280 --> 00:32:29,920
Speaker 1: will announced further investments in our facilities. We invest in Mexico,

593
00:32:30,400 --> 00:32:33,560
Speaker 1: We expand into new companies. We buy like Hydroforce. We

594
00:32:33,680 --> 00:32:36,360
Speaker 1: just bought that, which perfectly fits to us. So definitely,

595
00:32:36,480 --> 00:32:39,400
Speaker 1: the North American space, especially USA, is a big opportunity

596
00:32:39,480 --> 00:32:41,560
Speaker 1: for us. This is the day that we were getting

597
00:32:41,560 --> 00:32:44,040
Speaker 1: news some Tesla on the fact that it's going to

598
00:32:44,120 --> 00:32:47,719
Speaker 1: be producing trucks, and we're starting to see those Tesla

599
00:32:47,760 --> 00:32:51,080
Speaker 1: planning to deliver semi trucks to Pepsi. They unveiled them

600
00:32:51,080 --> 00:32:53,200
Speaker 1: a while ago, but they're now starting to potentially look

601
00:32:53,280 --> 00:32:56,440
Speaker 1: to deliver them. Stephan, do you think that the auto industry,

602
00:32:56,480 --> 00:32:59,080
Speaker 1: the truck industry will broadly though, has been too focused

603
00:32:59,680 --> 00:33:03,680
Speaker 1: on a treat technology Now, it's both right, that's so

604
00:33:03,880 --> 00:33:06,480
Speaker 1: interesting in the automotive and mobility world. Anything is right.

605
00:33:06,480 --> 00:33:08,920
Speaker 1: At the same time, you have to go heavily for

606
00:33:09,040 --> 00:33:12,720
Speaker 1: electrification also, and trucks especially. There are some medium sized trucks,

607
00:33:12,760 --> 00:33:15,160
Speaker 1: so also some heavy trucks if they go in only

608
00:33:15,240 --> 00:33:18,880
Speaker 1: short ranges where you need electrified trucks. Other machinery you

609
00:33:18,960 --> 00:33:22,080
Speaker 1: don't want the electrification because the batteries are just too heavy, right,

610
00:33:22,160 --> 00:33:24,800
Speaker 1: you can't use it. You don't have the electricity infrastructure

611
00:33:24,880 --> 00:33:27,080
Speaker 1: where you have a too long range necessary or you

612
00:33:27,240 --> 00:33:29,920
Speaker 1: drive over the whole day, which also may be a

613
00:33:30,040 --> 00:33:32,840
Speaker 1: problem there. So I would say yes, everything right, we

614
00:33:33,000 --> 00:33:36,160
Speaker 1: just have to see how which technology finds which application,

615
00:33:36,480 --> 00:33:39,400
Speaker 1: and that's what we have the market for. Stephen Hardtungue,

616
00:33:39,400 --> 00:33:43,240
Speaker 1: there Bosh chair of the management board, with our own

617
00:33:43,640 --> 00:33:46,400
Speaker 1: bloodlog I Johnson and critically Dea. And that does it

618
00:33:46,480 --> 00:33:48,480
Speaker 1: for this edition of Bloomberg Technology. You can stay with

619
00:33:48,560 --> 00:33:51,960
Speaker 1: Bloomberg Television tonight. We've got the lineup coming up with

620
00:33:52,040 --> 00:33:54,800
Speaker 1: Damien Sassaur and Kaylee Lines. They talk about how media

621
00:33:54,840 --> 00:33:57,800
Speaker 1: companies are looking to make a profit off the legalization

622
00:33:58,040 --> 00:34:01,960
Speaker 1: of sports betting. Seven p m. Easter and don't forget

623
00:34:02,080 --> 00:34:05,160
Speaker 1: check out our podcast wherever you get your podcasts. I'm

624
00:34:05,160 --> 00:34:08,520
Speaker 1: Emily Changing San Francisco. Have a wonderful weekend. Everyone, this

625
00:34:09,320 --> 00:34:09,760
Speaker 1: Gloomberg