WEBVTT - Market Reaction to Trump Indictment 0:00:01.280 --> 0:00:05.600 This is Bloomberg business Week Inside from the reporters and 0:00:05.840 --> 0:00:09.360 editors who bring you America's most trusted business magazine, plus 0:00:09.480 --> 0:00:13.640 global business finance and tech news. The Bloomberg Business Week 0:00:13.680 --> 0:00:18.640 Podcast with Carol Masser and Tim Stenebec from Bloomberg Radio. 0:00:20.239 --> 0:00:23.239 This is Jess witten Back with John Tucker, and we 0:00:23.360 --> 0:00:27.360 have in our interactive broker studio June Grasso, Bloomberg News 0:00:27.760 --> 0:00:31.280 legal analyst and host of Bloomberg Law here, and we're 0:00:31.320 --> 0:00:34.600 also going to bring in our star equities reporter Bailey Lipscholtz. 0:00:34.760 --> 0:00:37.800 He's here in Actually he's in Zooming News. Say where 0:00:37.880 --> 0:00:41.000 is he? He's not here. It's he's always here though, 0:00:41.040 --> 0:00:44.880 So it's fine. I don't think it's a star reporter. 0:00:45.960 --> 0:00:50.519 He's working from home. Hey, it's at And we're going 0:00:50.600 --> 0:00:52.720 to talk about the next legal steps in the criminal 0:00:52.720 --> 0:00:55.800 case against former President Donald Trump. Also how these Trump 0:00:55.840 --> 0:00:58.720 leaks fact that you were talking about John earlier have 0:00:58.840 --> 0:01:01.200 been reacting this. So June, I'm going to start off 0:01:01.200 --> 0:01:04.080 with you, can you set the scene to just run 0:01:04.120 --> 0:01:07.120 down what's happened and what is ahead for this as 0:01:07.120 --> 0:01:09.240 far as when we're going into next week. So do 0:01:09.319 --> 0:01:15.520 you have a half hour. Oh you do, Okay, that's good. 0:01:15.800 --> 0:01:20.240 So the main thing is that we don't know what 0:01:20.240 --> 0:01:22.920 the charges are because it's under sealed, so we won't 0:01:23.000 --> 0:01:26.720 find out what the charges actually are, perhaps until the 0:01:26.840 --> 0:01:31.280 arrayment itself happens on Tuesday. So but what we suspect, 0:01:31.360 --> 0:01:34.920 and what's been reported and reported and reported, as John 0:01:34.959 --> 0:01:39.520 Tucker knows, is that it's supposed to be a falsifying 0:01:39.640 --> 0:01:44.160 business records charge, which is a misdemeanor, and in order 0:01:44.200 --> 0:01:47.680 to take that up to a felony, the prosecutors will 0:01:47.680 --> 0:01:51.280 have to prove that Trump falsified records to cover up 0:01:51.320 --> 0:01:55.080 a second crime, such as violating federal campaign finance law. 0:01:55.440 --> 0:01:58.160 So that's what we suspect it is. That's a novel 0:01:58.360 --> 0:02:02.560 kind of theory. New York secutors have never tried that before. 0:02:03.280 --> 0:02:07.160 And as far as the arraignment, which comes next, is 0:02:07.240 --> 0:02:11.880 that he's going to be here downtown at this is 0:02:11.960 --> 0:02:14.680 New York Criminal Court. If you've ever been to arrayments, 0:02:14.800 --> 0:02:18.080 and I've been to any, not me, but watching others 0:02:18.160 --> 0:02:21.200 being array it's like it's an assistant district attorney who's 0:02:21.200 --> 0:02:23.919 like twenty five years old, and they power through it 0:02:24.000 --> 0:02:27.919 like your arraynment if you're just a typical Joe or Jane, 0:02:28.240 --> 0:02:31.919 takes about twenty seconds. So I suspect probably will be different. Yeah, 0:02:32.360 --> 0:02:35.959 especially if they read the thirty count what CNN's reporting 0:02:36.040 --> 0:02:39.360 is a thirty count indictment, it will be longer. And 0:02:39.480 --> 0:02:41.840 I don't think it. I don't know for sure, but 0:02:42.000 --> 0:02:44.440 I think it might not be the twenty five year 0:02:44.480 --> 0:02:48.240 old assistant you know, oh you think. No, I don't 0:02:48.320 --> 0:02:50.120 know that is going to do it. But I think 0:02:50.160 --> 0:02:52.520 maybe one of the attorneys that's been working on this 0:02:52.560 --> 0:02:56.440 case might do it. So just for you know, so 0:02:56.800 --> 0:02:59.760 we actually, I mean, we might actually get a shot 0:02:59.800 --> 0:03:03.320 of Donald Trump in the hallway. They sometimes allow cameras 0:03:03.360 --> 0:03:05.480 in the hallway, so if he's walked into the courtroom 0:03:05.480 --> 0:03:08.240 through the hallway, we might actually see him. That'll account for. 0:03:08.560 --> 0:03:11.320 That'll be the purp walk we usually yeah, but not 0:03:11.480 --> 0:03:13.680 but not. I don't think he'll be in handcuffs unless 0:03:13.680 --> 0:03:16.119 he wants to be. He has said there's been talk 0:03:16.160 --> 0:03:20.440 apparently about him wanting to have a perp walk with 0:03:20.560 --> 0:03:23.359 handcuffs on. But so he'll be and you won't see 0:03:23.400 --> 0:03:27.079 he'll be booked in the DA's office. He'll be fingerprinted, 0:03:27.360 --> 0:03:30.040 the mug shot will be taken, maybe a DNA swap, 0:03:30.040 --> 0:03:32.799 I'm not sure about that. And we won't see those 0:03:32.880 --> 0:03:36.840 mug shops most likely unless some news organization says we 0:03:36.960 --> 0:03:39.520 need to see them under First Amendment grounds for some reason, 0:03:39.600 --> 0:03:42.520 I don't know what. So that's what will happen, and 0:03:42.560 --> 0:03:45.200 then the charges will be read and he'll plead not guilty, 0:03:45.280 --> 0:03:47.400 and he'll get to go home to Florida, okay with 0:03:47.480 --> 0:03:49.920 your Bankran, And I have to point out to everybody 0:03:50.000 --> 0:03:52.800 we are talking to a Harvard Law school graduate who's 0:03:52.920 --> 0:03:59.200 got extensive experience. Is this case flimsy? I can't see. 0:03:59.200 --> 0:04:02.640 I mean, I can't trade because I haven't seen the charges. 0:04:02.920 --> 0:04:05.960 I mean everyone is waiting, every lawyer is waiting to 0:04:06.000 --> 0:04:09.400 see what the charges are. You know, once that indictment 0:04:09.480 --> 0:04:12.119 is unsealed, to see if maybe there's more there than 0:04:12.160 --> 0:04:14.800 we thought. But let me just say this, I don't 0:04:14.840 --> 0:04:17.960 think that Alvin Bragg, who's a cautious kind of man, 0:04:18.760 --> 0:04:23.200 would indict a former president if he couldn't, if you 0:04:23.200 --> 0:04:26.040 didn't think he could. I remember talking to the chief 0:04:26.160 --> 0:04:28.320 judge of New Yor Sault Walkler, and he told me 0:04:28.920 --> 0:04:30.960 in New York you can indict a ham sand yes, 0:04:31.000 --> 0:04:34.360 but years later No. But this is not a hand 0:04:34.600 --> 0:04:37.040 sandwich that we're indicting. This is a former president, and 0:04:37.080 --> 0:04:39.480 you don't want to indict him just because you can 0:04:39.520 --> 0:04:42.560 indict him and so, and also, look look at what 0:04:42.560 --> 0:04:44.839 he went through with the grand jury. I mean he 0:04:45.000 --> 0:04:48.320 called witness after witness, he called witnesses for the defense 0:04:48.360 --> 0:04:51.280 to the grand jury. Then he called rebuttal witnesses. So 0:04:51.360 --> 0:04:53.880 I mean, I think there might be more there. Let's 0:04:53.880 --> 0:04:57.000 bring in Bailey to get the take happening with these 0:04:57.040 --> 0:05:00.960 SPACs that have been linked to Donald Trump? What's happening today? 0:05:00.960 --> 0:05:03.359 How have they've been before being Yeah? Right now we 0:05:03.400 --> 0:05:06.720 have Digital World, which is the spack working to take 0:05:06.960 --> 0:05:10.080 Trump media group. Public is up about eight percent, so 0:05:10.160 --> 0:05:13.520 trading around fourteen dollars. Remember SPACs typically go public around 0:05:13.520 --> 0:05:15.320 ten dollars. This one has a little bit more than 0:05:15.360 --> 0:05:19.080 ten dollars per share in cash value, so still trading 0:05:19.080 --> 0:05:22.479 at a thirty percent premium. Thirty percent and change premium 0:05:22.560 --> 0:05:25.400 to what it would be worth if this deal fell apart. 0:05:25.760 --> 0:05:29.120 Really is just a gauge or a proxy of how 0:05:29.200 --> 0:05:31.279 much news is around Trump and how much excitement could 0:05:31.279 --> 0:05:33.240 be around it. So you see digital world trading higher. 0:05:33.279 --> 0:05:37.200 You see Rumble, which is the conservative alternative to YouTube, 0:05:37.400 --> 0:05:40.760 actually reported earnings and goes up double digits. Funware as 0:05:40.800 --> 0:05:43.839 a penny stock that's tied to Trump, also rallying, but 0:05:44.000 --> 0:05:46.800 still really down sharply over the past years. So those 0:05:46.800 --> 0:05:49.680 are the big three proxies that pretty much get a bid, 0:05:49.920 --> 0:05:52.440 whether it's good news or bad news, or really any 0:05:52.480 --> 0:05:55.400 news as it relates to the former president. We typically 0:05:55.440 --> 0:05:58.080 see these stocks really moving tandem. So what's the ideas 0:05:58.200 --> 0:06:01.160 everybody's going to be watching these outlets? I don't even 0:06:01.160 --> 0:06:05.960 know what to qualum because well, yeah, twenty four hours now, 0:06:06.839 --> 0:06:10.760 that's the view it. Trump Media owns truth Social, so 0:06:10.839 --> 0:06:13.680 kind of his ripoff of Twitter, which is where he 0:06:13.720 --> 0:06:17.840 typically posts. So we've seen engagement pretty strong numbers relatively 0:06:17.920 --> 0:06:20.080 from there. So that's kind of part of the optimism 0:06:20.480 --> 0:06:23.400 is that if Trump is making headlines, and if you 0:06:23.440 --> 0:06:25.680 are a follower or just interested in what he's doing, 0:06:25.720 --> 0:06:28.679 you're going to be spending more time on truth Social, 0:06:28.720 --> 0:06:31.800 maybe going on to Rumble, to hear Russell Grand or 0:06:31.880 --> 0:06:35.160 some other commentators who have been booted or banned from 0:06:35.240 --> 0:06:38.680 various platforms. Kind of laying out their expectations Rumble as 0:06:38.680 --> 0:06:43.040 a company that really wants to be uncancellable is the 0:06:43.080 --> 0:06:45.920 way they phrase it. So those are kind of areas 0:06:45.960 --> 0:06:49.200 that at least the perception is that if you're not 0:06:49.320 --> 0:06:54.440 wanting to listen to Bloomberg Radio or other traditional media outlets, 0:06:54.480 --> 0:06:58.640 that's where you'll kind of go for your entertainment engagement 0:06:59.040 --> 0:07:02.880 sounding boards. Bailey, you cover all things spacks. What's next 0:07:03.000 --> 0:07:07.279 for this Trump tied spack moving forward? They've been working 0:07:07.279 --> 0:07:09.120 to get this deal done. This was a deal announced 0:07:09.120 --> 0:07:13.120 back in October twenty twenty one. They've really done everything 0:07:13.160 --> 0:07:16.120 they can to get extensions. So right now their drop 0:07:16.160 --> 0:07:18.760 dead date is in September, so that means they can 0:07:18.840 --> 0:07:22.200 continue to work on getting the sign off from the 0:07:22.240 --> 0:07:24.640 likes of the Justice Department, the SEC who have been 0:07:24.800 --> 0:07:27.680 helping hold up this deal. So all eyes are on 0:07:27.760 --> 0:07:30.559 what could move forward. One thing that's interesting to note though, 0:07:30.680 --> 0:07:33.360 a few weeks ago, their CEO actually was booted from 0:07:33.400 --> 0:07:36.760 his role of Patrick Orlando, who had brought public a 0:07:36.800 --> 0:07:40.080 handful of spacks and was really a big fan of 0:07:40.120 --> 0:07:43.240 Donald Trump. So the shaking up at Digital World with 0:07:43.320 --> 0:07:47.160 their new CEO, Eric Swiders, stepping into that role could 0:07:47.200 --> 0:07:49.760 be a cause for optimism that this deal will eventually 0:07:49.760 --> 0:07:51.200 get done. But I talked to a lot of people 0:07:51.240 --> 0:07:53.800 in this back industry and they still really see this 0:07:53.960 --> 0:07:57.400 as something that probably does not actually cross the finished line, 0:07:57.480 --> 0:07:59.640 which would mean the investors who bought it at fourteen 0:07:59.680 --> 0:08:02.120 dollars today or one hundred and seventy five back in 0:08:02.160 --> 0:08:05.280 October twenty twenty one will be left with about ten 0:08:05.320 --> 0:08:07.680 dollars and thirty five cents. I've been. I've been this 0:08:07.720 --> 0:08:10.080 is unfair because I haven't seen the financials any of 0:08:10.080 --> 0:08:14.640 these companies. I mean, are they really viable. There's a 0:08:14.640 --> 0:08:18.760 lot of the beauty and curse of SPACs is that 0:08:18.800 --> 0:08:22.000 we don't really know much about what Trump Media wants 0:08:22.040 --> 0:08:24.600 to be or what it plans to be. Rumble. Uh 0:08:25.080 --> 0:08:27.840 valuation is really the big thing that an analysts are 0:08:27.880 --> 0:08:30.680 kind of skittish of. But they have seen an ability 0:08:30.720 --> 0:08:34.240 to court some of these uh call them talent or 0:08:34.280 --> 0:08:37.920 influencers to their platform. So I think that Rumble it 0:08:38.040 --> 0:08:41.560 seems like, at least looking at the fundamentals, could serve 0:08:41.640 --> 0:08:44.439 as an alternative video platform. But there's a lot of 0:08:44.640 --> 0:08:47.320 gray area around the valuation of Trump media and actually 0:08:47.360 --> 0:08:49.400 what it would look like and whether it could ever 0:08:49.440 --> 0:08:51.880 turn a profit. In June, before you go, since you're 0:08:51.880 --> 0:08:57.359 still building us, we're what are your billable hours anyway, 0:08:59.360 --> 0:09:02.280 Tuesday wednes Tuesday, it's supposed to be Tuesday, we're hearing 0:09:02.400 --> 0:09:06.840 two fifteen. Oh okay, we're hearing from home. Well that's 0:09:06.840 --> 0:09:10.840 your sort. The general. The General, it's out there. His 0:09:10.920 --> 0:09:14.160 attorneys have been talking and so he's supposedly coming in 0:09:14.240 --> 0:09:15.760 on Monday nine. If you want to go to Trump 0:09:15.840 --> 0:09:20.319 Tower to greet him, John, and then Tuesday he'll be 0:09:20.960 --> 0:09:24.880 down of the Criminal Courthouse. Excellent, and you'll be there too, 0:09:24.920 --> 0:09:30.000 I suspect. Thank you, June Grasso. It's great having you 0:09:30.080 --> 0:09:33.320 both here. June Grasso, Bloomberg New's legal analyst and Bailey 0:09:33.360 --> 0:09:36.440 lipshoal to US equities reporter for Bloomberg. You're listening to 0:09:36.480 --> 0:09:40.640 the Bloomberg Business Week podcast. Catch us live weekday afternoons 0:09:40.720 --> 0:09:43.880 from three to six Eastern Listen on Bloomberg dot com, 0:09:43.920 --> 0:09:47.360 the iHeartRadio app, and the Bloomberg Business app, or watch 0:09:47.440 --> 0:09:52.480 us live on YouTube. Andy Purty with Huawei USA. He's 0:09:52.520 --> 0:09:55.400 the chief security officer. We're going to help us detail 0:09:55.480 --> 0:09:58.880 some of the Companies twenty twenty two financial reports. Some 0:09:58.920 --> 0:10:01.720 of the particulars there, Andy, thanks for being on the program. 0:10:02.120 --> 0:10:05.480 You're in Washington. Give us some of the highlights of 0:10:06.640 --> 0:10:11.360 what the report says. Well, we have been in a 0:10:11.440 --> 0:10:14.960 difficult situation for a couple of years, and we're pleased 0:10:15.000 --> 0:10:20.200 that our business has stabilized and we are in a 0:10:20.280 --> 0:10:26.040 position to move forward. We are finding tremendous success in 0:10:26.080 --> 0:10:30.280 our five G to be business and we're investing historic 0:10:30.480 --> 0:10:33.439 amounts of money in this case twenty five point one 0:10:33.480 --> 0:10:35.920 percent of our revenue over twenty three billion dollars in 0:10:36.080 --> 0:10:38.520 R and D to help us deal with the recent 0:10:38.600 --> 0:10:41.920 unpleasantries and to help us find working with partners, the 0:10:42.640 --> 0:10:46.440 path forward to help grow our business. Hey, Andy, unpack 0:10:46.760 --> 0:10:51.480 this latest report for us. Where were the biggest takeaways? Well, 0:10:51.520 --> 0:10:55.400 the overall revenue increased slightly, Our carrier business had a 0:10:55.440 --> 0:10:59.000 slight increase. Our enterprise business to tremendous up thirty percent. 0:11:00.040 --> 0:11:03.640 That's really around our five G to be our digitalization 0:11:04.440 --> 0:11:08.040 right now, we're we work with seven hundred cities in 0:11:08.040 --> 0:11:10.480 the world two hundred and sixty seven the Fortune Global 0:11:10.520 --> 0:11:14.120 five hundred companies under under digital strategy we've got nine 0:11:14.120 --> 0:11:19.000 million developers and forty thousand ecosystent partners, and we're also 0:11:19.800 --> 0:11:25.240 announcing results of individual additional units, for example in digital 0:11:25.240 --> 0:11:29.120 power and cloud. Those are important areas for us that 0:11:29.840 --> 0:11:33.120 we look forward to driving some real progress in the 0:11:33.200 --> 0:11:38.120 years ahead. Hey, you're a subsidiary of Wawei Technologies, which 0:11:38.200 --> 0:11:41.880 we all know is the largest maker of telecom equipment. 0:11:43.480 --> 0:11:46.440 The launch of sort of a new social control era 0:11:46.559 --> 0:11:52.120 in China focuses on technology, tracking technology, whatever you want 0:11:52.480 --> 0:11:56.960 to call at this point, and you have been scrutinized 0:11:57.000 --> 0:12:00.640 on Capitol Hill, not unlike what we saw with TikTok. 0:12:00.880 --> 0:12:03.080 What is happening on that front. When it comes to 0:12:04.040 --> 0:12:08.680 the regulatory capacity in Congress, well, the two major areas. 0:12:08.760 --> 0:12:11.040 One has to do the ability to do business in 0:12:11.040 --> 0:12:13.719 the United States, and it's clear the United States is 0:12:13.760 --> 0:12:16.800 not interested in allowing us to do business in the 0:12:16.880 --> 0:12:19.199 United States. So that's a reality. We're not going to 0:12:19.240 --> 0:12:21.800 complain about it. We're going to move forward. The other 0:12:21.920 --> 0:12:24.920 is the question of trade restrictions, the ability of American 0:12:24.920 --> 0:12:28.480 companies to sell nonsensitive technologies to US. And while I 0:12:28.800 --> 0:12:31.440 applaud the efforts under the Chips Act, to bring a 0:12:31.440 --> 0:12:35.240 lot of jobs to America. You know, the fact is 0:12:35.320 --> 0:12:38.679 I'm concerned about American jobs and the semiconductor industry their 0:12:38.760 --> 0:12:42.960 ability to sell nonsensitive technologies to US. I think it 0:12:43.040 --> 0:12:45.920 could be a difficult future and I hope there might 0:12:45.960 --> 0:12:48.880 be a way to allow the sale of such nonsensitive 0:12:48.880 --> 0:12:52.240 technologies to US. And when it comes to these security issues, 0:12:52.520 --> 0:12:57.720 what did you find had the most red flags? Well, 0:12:57.960 --> 0:13:02.360 the issues over and number of years, and there really 0:13:02.400 --> 0:13:05.920 has not been anything specific. Obviously, there have been some 0:13:06.080 --> 0:13:09.240 geopolitical concerns, and so what we have tried to do 0:13:09.559 --> 0:13:13.920 around the world, in European Union, in Germany and all 0:13:13.960 --> 0:13:18.040 around the world is we try to develop and maintain 0:13:18.520 --> 0:13:20.440 the trust of our customers and the trust of the 0:13:20.480 --> 0:13:23.080 folks they have to be or their particular governments. We're 0:13:23.080 --> 0:13:25.320 a supplier or they're an operator, and so we have 0:13:25.360 --> 0:13:28.720 worked very hard on our global Cybersecurity and Privacy Insurance program, 0:13:29.520 --> 0:13:33.480 on partnering with standers bodies, on parting, for example, the 0:13:33.480 --> 0:13:37.520 telecom equipment effort that the standers bodies form to create 0:13:37.559 --> 0:13:43.000 specific requirements for telecom companies, specific testing requirements and accountability requirements. 0:13:43.320 --> 0:13:46.520 All those things we find gives the ability for most 0:13:46.559 --> 0:13:48.160 of the countries in the world to be able to 0:13:48.160 --> 0:13:50.440 push back and say no, there isn't a problem with 0:13:50.480 --> 0:13:55.079 while we take we take cybersecurity seriously, we take privacy seriously. 0:13:55.120 --> 0:13:58.360 And frankly, as I hear all this commotion, I hope 0:13:58.400 --> 0:14:00.560 the United States is going to take privacy production a 0:14:00.559 --> 0:14:02.760 whole lot more seriously than than we have in the past. 0:14:03.000 --> 0:14:05.520 National privacy legislation will be good. That's not going to 0:14:05.520 --> 0:14:08.360 be good enough to help address the risk involving, for example, 0:14:08.400 --> 0:14:11.600 social media companies. Well, how much of what Huawei does 0:14:11.679 --> 0:14:17.840 around the world relates to governments keeping tabs under people? Well, 0:14:17.960 --> 0:14:21.640 it doesn't. I mean, the issue of surveillance is not 0:14:21.760 --> 0:14:25.160 something that we do. You know, there's I mean supplying 0:14:25.200 --> 0:14:31.400 that the components to enable that. Well, the issues about 0:14:31.400 --> 0:14:33.920 what products you sell that could be misused and throw 0:14:33.960 --> 0:14:37.120 a very rough analogy, the idea of a hammer can 0:14:37.120 --> 0:14:38.640 be used for good, it can be used for bad. 0:14:39.080 --> 0:14:44.240 We don't help governments create special algorithms or special technologies 0:14:44.240 --> 0:14:48.920 that they can use to abuse people. And we are 0:14:49.040 --> 0:14:53.560 working globally to participate in the development of ethical principles 0:14:54.000 --> 0:14:56.240 for some of these things that go beyond the issue 0:14:56.280 --> 0:15:00.680 of complying with the individual requirements in individual country. And 0:15:01.440 --> 0:15:03.440 we think those kinds of efforts are what's going to 0:15:03.440 --> 0:15:07.560 be necessary to help address the risk of misuse by governments. 0:15:07.560 --> 0:15:10.040 And there's definitely a risk there is there a path 0:15:10.160 --> 0:15:14.480 back into the United States. There is so much business 0:15:14.560 --> 0:15:17.600 to do around the world, so many places where people 0:15:18.000 --> 0:15:20.480 right now are anxious for us to do business, so 0:15:21.000 --> 0:15:23.520 we are not really pursuing the possibility of doing business 0:15:23.560 --> 0:15:25.360 in the United States. And frankly, I'm glad that at 0:15:25.440 --> 0:15:27.760 least we can share some of the lessons we're learning 0:15:28.040 --> 0:15:32.160 about how countries and companies, how governments can benefit from 0:15:32.200 --> 0:15:35.240 the new technology, so that hopefully the United States, not 0:15:35.400 --> 0:15:37.880 with us, but hopefully the United States can ramp up 0:15:37.920 --> 0:15:40.760 their efforts to get the benefits of these technologies and 0:15:40.800 --> 0:15:43.480 to grow the competitiveness of America. And one of the 0:15:43.560 --> 0:15:46.320 great shortcomings has to do with our talent, our workforce, 0:15:46.320 --> 0:15:49.080 because we're really not stepping up for the future. Andy, 0:15:49.120 --> 0:15:51.760 you brought up government and legislation earlier. What do you 0:15:51.800 --> 0:15:57.120 think specifically needs to be in that with regards to privacy, Well, 0:15:58.960 --> 0:16:01.360 I think we've seen some examples of what shouldn't be 0:16:01.400 --> 0:16:06.080 in there. And I defer to the privacy experts as 0:16:06.080 --> 0:16:08.880 to what and the industry experts as to what should 0:16:08.920 --> 0:16:11.520 be in privacy legislation. But I think there need to 0:16:11.520 --> 0:16:14.800 be more than those kinds of requirements because the minimal 0:16:14.880 --> 0:16:17.480 requirements that you can get legislatures to agree on are 0:16:17.520 --> 0:16:21.360 not going to be good enough given the risk. One 0:16:21.360 --> 0:16:23.400 of the lessons we learned two years ago these major 0:16:23.440 --> 0:16:26.680 cyber attacks on trusted American companies Solar Winds of Microsoft 0:16:26.720 --> 0:16:29.720 Exchange Forever, proved there's no such thing as trusted suppliers. 0:16:29.760 --> 0:16:32.320 They're trusted, but the bad guys can hack into them. 0:16:32.480 --> 0:16:35.480 So whoever's got data, whoever has important functions. And as 0:16:35.520 --> 0:16:41.359 we move into five genable technologies automation, machine, the machine, communication, 0:16:41.720 --> 0:16:44.400 sensor to machine, we have to make sure that those 0:16:44.400 --> 0:16:46.400 systems are going to be running. So we have to 0:16:46.440 --> 0:16:48.680 make sure that no matter who the supplier is, they're 0:16:48.720 --> 0:16:52.560 objective and transparent basis for knowing whether those products and services, 0:16:52.600 --> 0:16:55.000 whether those data are protected. And I think the leaders 0:16:55.040 --> 0:16:57.760 of cybersecurity United States are moving in the right direction, 0:16:57.920 --> 0:17:00.160 but we've got to really ramp up those efforts to 0:17:00.200 --> 0:17:05.359 promote assurance transparency and accountability. What is the future hold 0:17:05.359 --> 0:17:09.520 for your company in terms of technology, Well, right now, 0:17:09.560 --> 0:17:14.880 the proofcase of the five G to business, the digitalization 0:17:15.600 --> 0:17:20.560 of industries and sub industries is so exciting, and the 0:17:20.600 --> 0:17:24.919 benefits of smart mining and ports and manufacturing, the efforts 0:17:25.040 --> 0:17:27.320 we're working with the major carriers in the world to 0:17:27.359 --> 0:17:29.640 help produce the carbon footprint to help meet the UN 0:17:29.760 --> 0:17:33.639 goals we are actively participating, and how to generate green energy, 0:17:33.840 --> 0:17:36.439 how to transport it, how to save it, how to 0:17:37.200 --> 0:17:41.240 increase the efficiency of everything that's done, and find ways 0:17:41.280 --> 0:17:44.399 to use more green energy. And so the future is 0:17:44.680 --> 0:17:47.480 very very bright, particularly with the strong partners that we 0:17:47.520 --> 0:17:50.520 have around the world. And you're talking about green energy, 0:17:50.720 --> 0:17:53.560 what specifically are those strategies Whenever you were talking to 0:17:53.640 --> 0:17:58.080 how to improve all of this, Well, you have some 0:17:58.520 --> 0:18:01.000 existing technology that you them to be more efficient. So 0:18:01.040 --> 0:18:06.360 for example, in the carrier networks, data centers and base 0:18:06.400 --> 0:18:09.600 stations that kind of like antennas use up a lot 0:18:09.640 --> 0:18:13.680 of energy. So using technology sometimes with algorithms to try 0:18:13.720 --> 0:18:16.879 to take advantage of when they're not being used to 0:18:17.000 --> 0:18:19.960 reduce the power consumption. And in terms of whether they're 0:18:19.960 --> 0:18:22.000 stored outside or inside, where you have to use the 0:18:22.000 --> 0:18:27.560 air conditioning. Those kinds of techniques can increase efficiency and 0:18:28.240 --> 0:18:33.879 can promote a reduction in the carbon footprint. And the 0:18:35.119 --> 0:18:38.520 fact is that hardcore research and development, working with our 0:18:38.560 --> 0:18:41.399 partners to try to develop green energy and how to 0:18:41.400 --> 0:18:45.400 bring it forward, how to find ways to deliver power 0:18:45.880 --> 0:18:49.159 that's based on green energy is something that we're working 0:18:49.200 --> 0:18:51.480 hard on and we're making substantial progress on. It's it's 0:18:51.480 --> 0:18:54.000 exciting to be part of that. You mentioned smart mining 0:18:54.040 --> 0:18:56.679 would give me the dummies definition me being the dummy 0:18:56.720 --> 0:19:01.080 for smart training. So for example, you know how drone 0:19:01.080 --> 0:19:04.640 pilots can don't have to be on the battlefield. So increasingly, 0:19:04.800 --> 0:19:07.520 and we've got a number of examples in Africa and 0:19:07.600 --> 0:19:11.760 shine on other places where you create special five G 0:19:11.960 --> 0:19:15.120 special power requirements that can be five G underground, so 0:19:15.200 --> 0:19:17.199 you can you can have the sensor, you can have 0:19:17.240 --> 0:19:19.840 the machines so that they can control the equipment without 0:19:19.840 --> 0:19:21.680 going down in the mines. There's one mind of my 0:19:21.760 --> 0:19:24.600 colleague told me about he visited that's three thousand meters 0:19:24.680 --> 0:19:30.320 underground and the working shift for the workers is four weeks. 0:19:30.880 --> 0:19:32.879 They have to go down there for four weeks. So 0:19:32.960 --> 0:19:36.640 the idea of having this technology that can allow not 0:19:36.720 --> 0:19:39.840 only the operations, but the monitor of safety. So you 0:19:40.280 --> 0:19:44.040 have like at thirty meter giant machine, it's it's it's 0:19:44.240 --> 0:19:47.439 it's doing the mining, and you have multiple cameras to monitor. 0:19:47.600 --> 0:19:50.199 So you use an AI algorithm to stitch together the 0:19:50.320 --> 0:19:53.440 videos along that thirty meter strip so that the operator 0:19:53.720 --> 0:19:57.280 can monitor it and you can have a and those 0:19:57.320 --> 0:20:00.000 who are providing oversight for safety and control and resilience 0:20:00.320 --> 0:20:03.560 they can monitor it. Also. It's the same thing with reports. 0:20:03.600 --> 0:20:08.720 The ability to have automation can increase efficiency and help 0:20:08.800 --> 0:20:11.240 cut down on some of the supply chain bottle next 0:20:11.320 --> 0:20:15.840 or there and manufacturing. Generally, the greater efficiency the manufacturing 0:20:15.880 --> 0:20:18.760 process is going to save money and reduce energy consumption. 0:20:18.800 --> 0:20:21.520 And this stuff is all very exciting. Andy, thanks a lot, 0:20:21.560 --> 0:20:26.720 Andy purty Uahwei's USA Chief security officer detail like some 0:20:26.760 --> 0:20:32.160 of the financial report of the company's twenty two financial results. 0:20:32.480 --> 0:20:36.520 You're listening to Bloomberg Business Week right here on Bloomberg Radio. 0:20:37.520 --> 0:20:41.120 You're listening to the Bloomberg Business Week podcast. Catch us 0:20:41.160 --> 0:20:45.200 live weekday afternoons from three to six eastre on Bloomberg Radio, 0:20:45.359 --> 0:20:48.639 the Bloomberg Business app and YouTube You can also listen 0:20:48.760 --> 0:20:51.919 live on Amazon Alexa from our flagship New York station. 0:20:52.200 --> 0:20:57.679 Just say Alexa play Bloomberg eleven thirty. So we've got 0:20:57.720 --> 0:21:01.120 another great guest in our lineups of Cappy Cranning Ger 0:21:01.720 --> 0:21:06.280 and she's the former director of the Consumer Financial Protection Bureau, 0:21:06.480 --> 0:21:10.200 also vice president of regulatory Affairs at solid Labs. She's 0:21:10.240 --> 0:21:14.280 on Zoom from Washington, DC. And so solid or solid 0:21:14.359 --> 0:21:21.240 saw do you pronounce that? Solidust correct? Solidists excuse me, solidusta, sorry, 0:21:21.359 --> 0:21:25.800 butcher that but we corrected it. So Solidust Labs. So, 0:21:25.960 --> 0:21:28.240 to give some context to our listeners, it's a crypto 0:21:28.280 --> 0:21:31.960 market surveillance firm that works with exchanges, regulators and investment 0:21:32.000 --> 0:21:36.159 firms to flag market manipulation and other risk issues. And so, Kathy, 0:21:36.200 --> 0:21:38.639 I want you to break this down for us because 0:21:38.640 --> 0:21:42.360 obviously we've had the wake of multiple bank collapses. We've 0:21:42.400 --> 0:21:45.399 also had FTX in recent months. What happened with that 0:21:45.440 --> 0:21:49.440 situation is still ongoing obviously, right, But then how exactly 0:21:49.520 --> 0:21:52.920 has all this ended up impacting the crypto market specifically, 0:21:54.400 --> 0:21:58.080 and it has a dramatic impact. Look, I believe in 0:21:58.760 --> 0:22:01.440 the future of the digital asset space. I think it's 0:22:01.480 --> 0:22:04.240 the future of the Internet. That's why I joined this industry, 0:22:04.280 --> 0:22:07.240 and I'm excited to be, you know, wearing a white 0:22:07.240 --> 0:22:10.560 hat at Solidus Labs, which as you noted, you know, 0:22:10.640 --> 0:22:13.439 looks for manipulation and seeks to root out fraud in 0:22:13.480 --> 0:22:18.600 this space. But the news of FTX, the tentacles that 0:22:18.720 --> 0:22:22.800 FTX had across the globe, to regulators, to policy makers, 0:22:23.440 --> 0:22:25.399 it was looked at as a as a leader in 0:22:25.440 --> 0:22:29.160 some respects in the conversation around what regulation and what 0:22:29.200 --> 0:22:32.840 responsible market participants should do. And you see that it 0:22:32.920 --> 0:22:36.959 was a big scam, and as you noted, additional charges 0:22:37.000 --> 0:22:40.080 were brought this week and more keeps coming on that. 0:22:40.960 --> 0:22:44.840 But look, fraud is not new and certainly digital asset 0:22:44.920 --> 0:22:48.960 markets did not invent it. You see this in traditional finance. 0:22:49.320 --> 0:22:53.480 There are regular enforcement actions against the biggest banks and 0:22:53.520 --> 0:23:00.000 institutions you know, in financial services on a not infrequent basis. 0:23:00.119 --> 0:23:03.320 And also there are scammers who are always going to 0:23:03.400 --> 0:23:06.840 seek to take advantage of people unfairly, and the hope 0:23:06.920 --> 0:23:10.280 is that prosecutors go after them and to the fullest 0:23:10.320 --> 0:23:13.400 extent of the law. They managed to claw back funds 0:23:13.440 --> 0:23:17.480 and make people who are hurt whole in the cryptospace, 0:23:17.960 --> 0:23:21.000 is am I correct to say, it's the platforms where 0:23:21.040 --> 0:23:25.200 all the who can this has been taken place, Like, 0:23:25.359 --> 0:23:29.119 the platforms perform an important role to the extent that 0:23:29.240 --> 0:23:32.560 you've got intermediaries in the space. Of course, one of 0:23:32.560 --> 0:23:37.080