WEBVTT - Tech Earnings and AI's Rise 0:00:01.440 --> 0:00:06.720 From Marhard where Innovation, money and power Collie in Silicon Valley, NBN. 0:00:07.040 --> 0:00:11.080 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:25.239 --> 0:00:27.680 I'm Carolin Hyde and Bloomberg's word lad Quarters in New York, 0:00:28.160 --> 0:00:29.720 and I'm Ed Lovelow in San Francisco. 0:00:29.880 --> 0:00:31.520 This is Bloomberg Technology. 0:00:31.760 --> 0:00:35.760 Ed caution consumes investors as were a torrent of tech earnings. 0:00:35.760 --> 0:00:37.960 This week, we discuss what to watch. 0:00:38.520 --> 0:00:41.680 But artificial intelligence momentum. We speak to the CEO of 0:00:41.760 --> 0:00:45.120 Runway on generative AI powered video and we're joined by 0:00:45.120 --> 0:00:49.040 the executive leading fidelities charge into AI and machine learning. 0:00:49.280 --> 0:00:53.320 Meanwhile, legal headaches to blue check chaos. What on earth 0:00:53.440 --> 0:00:56.040 is going on at Twitter? The latest is all coming up. 0:00:56.080 --> 0:00:58.760 It is a big week where earnings are in focus. 0:00:58.800 --> 0:01:01.480 You look at this sort of long list of megacat 0:01:01.560 --> 0:01:04.320 names that are coming. We start with Microsoft, then Alphabet, 0:01:04.319 --> 0:01:07.720 the parent company of Google Meta, and then we work 0:01:07.800 --> 0:01:09.560 through to May fourth in a couple of weeks time 0:01:09.680 --> 0:01:13.280 or next week. For Apple. Things are getting very serious 0:01:13.360 --> 0:01:17.119 because across the S and P five hundred information technology subsector, 0:01:17.400 --> 0:01:19.679 we expect a pretty big drop when it comes to 0:01:19.680 --> 0:01:20.319 earning's character. 0:01:20.360 --> 0:01:22.920 Yeah, we're expecting the biggest drop in tech profits since 0:01:22.959 --> 0:01:25.480 two thousand and nine. Let's dig in to the key 0:01:25.480 --> 0:01:27.240 company's got to keep an eye on none of them 0:01:27.280 --> 0:01:29.120 and Mart Mahiney you know him, of course, senior managing 0:01:29.120 --> 0:01:32.520 director of Internet Research over at Evercore ISI and we 0:01:32.560 --> 0:01:35.240 wait with bated breath to the likes of Alphabet, some 0:01:35.280 --> 0:01:37.920 of the big heavyweights that really shine and light on 0:01:38.040 --> 0:01:40.880 how much companies are willing to spend on advertising and 0:01:40.959 --> 0:01:42.240 drive these sorts of companies forward. 0:01:42.319 --> 0:01:45.840 Mark, That's right, Caroline, So yeah, we're going to get 0:01:45.840 --> 0:01:47.200 a lot of I think there are three things we 0:01:47.240 --> 0:01:49.040 want to alter that it and all the noise we're 0:01:49.080 --> 0:01:50.600 going to get the signal we're going to get this week. 0:01:50.680 --> 0:01:52.800 Let's try to focus on three things. What are these 0:01:52.840 --> 0:01:55.240 companies telling us about the state of the economy. Is 0:01:55.360 --> 0:01:59.760 our advertising retail trends, cloud enterprise spend trends. Are they 0:01:59.800 --> 0:02:03.080 still deteriorating or improving from where we were in the 0:02:03.120 --> 0:02:06.720 December quarter? Our best guess is that trends are stabilizing 0:02:06.840 --> 0:02:10.640 to softening, not recovering yet. The second thing is costs. 0:02:10.720 --> 0:02:13.760 That's the new sheriff in town, if you will. All 0:02:13.760 --> 0:02:17.519 of these companies across tech have announced some sort of 0:02:17.560 --> 0:02:21.080 riffs reduction in forces over the last three six nine months. 0:02:21.280 --> 0:02:23.800 I mean, it's a dramatic change in the mentality of 0:02:23.840 --> 0:02:27.040 Silicon Valley and of tech broadly. So is there more 0:02:27.080 --> 0:02:29.040 to come? And what does it actually mean in terms 0:02:29.080 --> 0:02:31.800 of the bottom line? How successful are these companies defending 0:02:32.080 --> 0:02:34.040 their free cash flow and earnings? And then the third 0:02:34.120 --> 0:02:37.120 thing is on the positive side, is AI generative AI. 0:02:37.160 --> 0:02:40.440 You already teased it out a little bit, and I 0:02:40.440 --> 0:02:43.639 imagine that every tech company is going to mention AI 0:02:43.720 --> 0:02:46.160 and somebody should start a counter right now. How many 0:02:46.160 --> 0:02:49.559 times AI is mentioned in the in the earnings transcripts 0:02:49.560 --> 0:02:51.600 over the next of course, of the next couple of weeks. 0:02:51.680 --> 0:02:52.440 But it's going to be high. 0:02:52.440 --> 0:02:54.000 But for a reason too, we're at a bit of 0:02:54.000 --> 0:02:57.000 a tipping point because for a lot of reasons, but 0:02:57.040 --> 0:03:00.520 you know, chat GPT really brought AI home to most 0:03:00.600 --> 0:03:03.280 people about what the power is of these models even 0:03:03.320 --> 0:03:05.760 though they've been deployed for a while. But the increase 0:03:05.880 --> 0:03:08.920 in compute capacity really allows kind of a step level 0:03:08.960 --> 0:03:11.840 increase in the applications to the deployments of AI. So 0:03:12.000 --> 0:03:13.959 talk about it. We want these companies to talk about 0:03:13.960 --> 0:03:16.800 how well positioned they are and what their deployment ideas are. 0:03:17.639 --> 0:03:20.200 Mark, let's go back to that sheriff in town being 0:03:20.440 --> 0:03:23.400 cost control. You know, probably the one point of commonality 0:03:23.440 --> 0:03:26.200 between those names is that they have done layoffs and 0:03:26.240 --> 0:03:29.680 other cost reduction action and how it shows up. I 0:03:29.680 --> 0:03:32.480 find Meta to be really interesting in that respect because 0:03:32.520 --> 0:03:34.800 the top line growth might not be there, but I 0:03:34.800 --> 0:03:38.320 think we're expecting a sequential improvement in margins, right because 0:03:38.320 --> 0:03:40.200 of the actions that they've taken. 0:03:42.560 --> 0:03:43.480 I think that's right. 0:03:43.520 --> 0:03:46.400 I just think of these companies, probably the one that's 0:03:46.440 --> 0:03:49.600 been most aggressive in taking out costs so far, maybe 0:03:49.680 --> 0:03:53.120 surprisingly it is Meta, and I think these other companies, 0:03:53.160 --> 0:03:55.240 I think the market. I think investors want Google to 0:03:55.280 --> 0:03:58.240 do more with their cost structure, that's probably, and then 0:03:58.480 --> 0:04:00.880 I think market once and investors want Amazon to do 0:04:00.960 --> 0:04:04.440 more too. I don't know about Microsoft. Investors may be 0:04:04.480 --> 0:04:07.040 comfortable with where they are now, but yeah, I think 0:04:07.040 --> 0:04:08.920 at the whole, investors kind. 0:04:08.760 --> 0:04:09.600 Of want a little bit more. 0:04:09.680 --> 0:04:14.320 Look, we overbuilt, we over hired because we overextrapolated from 0:04:14.360 --> 0:04:16.599 COVID demand trends, but also because we're going into a 0:04:16.600 --> 0:04:19.279 softening demand environment. You know, households are going to have 0:04:19.279 --> 0:04:21.480 to tighten our belts and solo companies. So I think 0:04:21.480 --> 0:04:23.400 there's gonna be an expectation or at least a hope. 0:04:23.560 --> 0:04:25.200 This question is whether it's going to be realized that 0:04:25.240 --> 0:04:27.280 we're going to hear more on the cost front from companies. 0:04:27.320 --> 0:04:29.320 I think we will from Meta, I'm not sure we 0:04:29.360 --> 0:04:31.960 will from Google, and I think we will from Amazon, 0:04:32.040 --> 0:04:33.279 but you know, it's hard to know. 0:04:33.600 --> 0:04:37.000 The three big beasts that you analyze Mark Amazon also 0:04:37.120 --> 0:04:39.160 will shine a light, as you said so rightly, on 0:04:39.200 --> 0:04:42.320 how willing companies are to invest in things like cloud. 0:04:42.360 --> 0:04:44.880 At the moment, AWS a big profit juggernaut for them, 0:04:45.080 --> 0:04:47.479 but also for alphabet who are hoping to break even 0:04:47.520 --> 0:04:50.080 in some way on that. What do you expect for 0:04:50.120 --> 0:04:53.520 how much companies are showing resilience and needing compute power 0:04:53.600 --> 0:04:54.000 right now? 0:04:55.400 --> 0:05:00.520 Well, we're decelerating. I think cloud demand is going down. 0:05:01.560 --> 0:05:04.720 It shot up during part of the COVID crisis. It's 0:05:04.760 --> 0:05:09.040 been a super hot, high priority level area for enterprise 0:05:09.080 --> 0:05:11.720 spend for the better part of five, six, seven years, 0:05:12.279 --> 0:05:14.560 but it's slowed down and we're through what we're going 0:05:14.560 --> 0:05:18.120 through what's called an optimization cycle, where companies are going 0:05:18.200 --> 0:05:20.680 to you know, when the renewals are coming up, they're 0:05:20.880 --> 0:05:24.400 demanding better, a bigger discounts, or more capacity for the 0:05:24.440 --> 0:05:27.720 same price. That's clearly happening in the market. That means 0:05:27.720 --> 0:05:29.840 that these revenue growth rates that Microsoft is going to 0:05:29.920 --> 0:05:32.359 report with a zer, a, Google Cloud, and AWS are 0:05:32.400 --> 0:05:34.720 going to report, they're all going to show a slow down. 0:05:34.760 --> 0:05:37.120 And the question we have is just how low will it go? 0:05:37.560 --> 0:05:39.680 And I think we hope that the trough is kind 0:05:39.680 --> 0:05:42.120 of the June quarter, and we think with Amazon with 0:05:42.160 --> 0:05:44.359 AWS you're going to have like a single digit percent 0:05:44.440 --> 0:05:47.360 growth and AWS revenue. I mean, that's kind of shocking 0:05:47.440 --> 0:05:50.120 if you go back two years, nobody would have expected 0:05:50.120 --> 0:05:52.799 that to happen, But that's probably what's going to happen. 0:05:52.920 --> 0:05:54.919 And then the question is how quickly does it base 0:05:54.960 --> 0:05:57.440 from there and start reaccelerating. We think it will base, 0:05:57.480 --> 0:06:00.280 We think it will reaccelerate. We just don't really know 0:06:00.720 --> 0:06:02.960 just how quickly it will. So that's that's going to 0:06:03.000 --> 0:06:05.360 be an overhang on the stock mark. 0:06:05.400 --> 0:06:08.440 If we do get some upside surprise across this kind 0:06:08.440 --> 0:06:11.080 of pretty broad range of names, where do you think 0:06:11.080 --> 0:06:11.520 it will be. 0:06:13.240 --> 0:06:15.200 I think it's probably going to come on the margin side. 0:06:15.279 --> 0:06:16.640 Ed I think it's probably going to come on the 0:06:16.640 --> 0:06:18.599 cost side, because that's what these companies can control. It 0:06:18.640 --> 0:06:22.440 can't do much about demand trends in a softening macro environment. 0:06:22.480 --> 0:06:25.440 So I'd be really surprised if we had positive, you know, 0:06:26.000 --> 0:06:30.560 material upwards revisions on cloud enterprise spend, or on retail 0:06:30.640 --> 0:06:32.920 spend or on advertising spend. I mean, I hope we 0:06:33.000 --> 0:06:35.080 get them, but as a bull on these stocks, but 0:06:35.160 --> 0:06:35.479 I don't. 0:06:35.520 --> 0:06:36.159 I think that's. 0:06:36.040 --> 0:06:40.320 Highly highly unlikely and what we should so I think 0:06:40.360 --> 0:06:42.800 there'll be positive news on the margins. We should all 0:06:42.839 --> 0:06:45.400 be just watching out for the chance that if we 0:06:45.480 --> 0:06:47.719 go into a hard landing in the second half of 0:06:47.720 --> 0:06:50.320 this year. I don't think that's modeled in. It may 0:06:50.360 --> 0:06:52.400 be priced in, but I don't think it's modeled into 0:06:52.440 --> 0:06:55.280 these companies. So that's what we're you know, Like I 0:06:55.560 --> 0:06:59.480 do worry like fund valuation wise, I think there's upside 0:06:59.480 --> 0:07:01.960 to be stock because they were so de risk last year. 0:07:02.120 --> 0:07:04.320 But estimates wise, I think the first half the year 0:07:04.520 --> 0:07:06.400 estimates are fine, a little bit of an upwards bias 0:07:06.440 --> 0:07:08.760 because of cost cutting, But I just worry about the 0:07:08.760 --> 0:07:11.280 demand tens if we have a hard landing estimates may 0:07:11.320 --> 0:07:12.960 need to come down in the back half of the year, 0:07:13.040 --> 0:07:14.960 So I don't know if that's more cautious than you 0:07:15.000 --> 0:07:17.040 wanted to hear it. That's kind of how we come out. 0:07:17.320 --> 0:07:20.040 And what's interesting about timing this year for this quarter. 0:07:20.400 --> 0:07:22.080 It used to be that Snap was the bell weather 0:07:22.160 --> 0:07:24.320 for where we would expect Alphabet and Meta to go, 0:07:24.480 --> 0:07:27.120 but they're actually behind those two ones in terms of 0:07:27.160 --> 0:07:27.880 timing this year. 0:07:28.600 --> 0:07:31.240 Yeah, you're right, we showed the calendar earlier. Mark. It's 0:07:31.280 --> 0:07:34.720 just the cadence of the week gets bigger and bigger 0:07:34.720 --> 0:07:36.800 and bigger. But we don't have an early sense apart 0:07:36.800 --> 0:07:39.760 from Tesla that's reported on broadly where we sit in 0:07:39.760 --> 0:07:40.440 this market. 0:07:41.680 --> 0:07:44.360 You're right, Carolina, Then you're right, and it's odd the 0:07:44.360 --> 0:07:46.680 way you set it up. Caroline, you're right that the 0:07:46.680 --> 0:07:50.480 market took Snap as a bell weather, but come on, 0:07:50.560 --> 0:07:53.280 it's tiny compared to these other companies, and they haven't 0:07:53.320 --> 0:07:55.840 executed nearly as well, so they've really been a false 0:07:56.800 --> 0:08:00.520 false indicator most quarters, I would argue, So I think 0:08:00.560 --> 0:08:03.320 it's better for the market that they report later because 0:08:03.360 --> 0:08:06.000 it's just noise that comes out of them. You and 0:08:06.000 --> 0:08:07.800 I don't mean I don't mean that disrespectfully. I just 0:08:07.840 --> 0:08:09.520 think that they're less of a read through into the 0:08:09.600 --> 0:08:12.320 larger and larger players. That's what I really meant to 0:08:12.360 --> 0:08:15.680 say in a respectful way. Whereas Google is going to 0:08:15.680 --> 0:08:17.560 give you a really good view on what's happening to 0:08:17.640 --> 0:08:22.440 overall advertising trends. Google is GDP advertising, so and I 0:08:22.480 --> 0:08:24.840 think they're going to talk about trends that are softening, 0:08:24.840 --> 0:08:28.000 not deterior and dramatically, but are modestly deteriorating. And I 0:08:28.000 --> 0:08:29.960 think we should be prepared for that. I think it's 0:08:29.960 --> 0:08:33.280 going to be a really reasonable read through, certainly sizable. 0:08:33.320 --> 0:08:36.319 It's the single largest advertising data point you can get worldwide. 0:08:36.600 --> 0:08:37.920 Pay attention to Google. 0:08:38.040 --> 0:08:40.839 Mamahini well said, and pay attention to all of those 0:08:40.880 --> 0:08:42.920 AI headlines that come out of them as well. Av 0:08:42.920 --> 0:08:45.480 Aquo II, we thank you as always for joining. 0:08:45.320 --> 0:08:45.680 Us a ed. 0:08:46.400 --> 0:08:46.640 Yeah. 0:08:46.640 --> 0:08:49.040 Look, layoffs were a common theme of that conversation. Let's 0:08:49.040 --> 0:08:51.559 take a look at Disney, which began its second round 0:08:51.800 --> 0:08:54.600 of job cuts today, part of its broader push to 0:08:54.640 --> 0:08:58.440 eliminate about seven thousand jobs this year. The company says 0:08:58.480 --> 0:09:01.959 that by Thursday, around four four thousand jobs will have 0:09:02.080 --> 0:09:05.000 been cut. The cut stretch from Disney's headquarters in Burbank, 0:09:05.240 --> 0:09:10.120 California to the ESPN Sports network over in Connecticut. Now 0:09:10.160 --> 0:09:12.880 coming up, Bitcoin hit new records after each of its 0:09:12.960 --> 0:09:17.560 previous harvings. Now cryptoanalysts are projecting for a new high 0:09:17.640 --> 0:09:20.360 when the process takes place next year. We have more 0:09:20.400 --> 0:09:22.880 and how this will push the price of the digital 0:09:22.960 --> 0:09:28.400 token quick check and the shares of First Republic higher 0:09:28.920 --> 0:09:33.600 seven percent due out of earnings after the bell later today, 0:09:33.720 --> 0:09:36.680 have really keen eye on deposit flows still going the 0:09:36.720 --> 0:09:39.200 health of that bank long term, bringing the details. 0:09:39.240 --> 0:10:07.720 This is bloombow. 0:09:58.240 --> 0:10:00.280 So crypto taking a bit of a breathe over the 0:10:00.360 --> 0:10:03.040 last few trading days, but analysts through actually saying Bitcoin 0:10:03.080 --> 0:10:05.760 in particular, it's rebound, just the start of the rally 0:10:05.800 --> 0:10:08.760 that will take the coin past fifty thousand dollars next year, 0:10:09.080 --> 0:10:11.280 all because of what is the process known as halving, 0:10:11.559 --> 0:10:14.040 that's basically curbing the amount of tokens that miners receive 0:10:14.080 --> 0:10:16.600 as a reward for their work. Mike mccloin seeing in 0:10:16.640 --> 0:10:19.120 macro strutches and bringing back intelligence joins us. Now with 0:10:19.240 --> 0:10:22.200 more and this so called harving, we're anticipating what happens 0:10:22.200 --> 0:10:23.400 in about April of next year. 0:10:24.800 --> 0:10:28.000 Well, Hi, Caroline, it makes me put on my trader's 0:10:28.040 --> 0:10:30.760 hat versus my investor's hat. The having, i think is 0:10:30.800 --> 0:10:34.760 the key part of bitcoin's definable diminishing supply, which is 0:10:34.840 --> 0:10:36.720 unique to all common is the theater is kind of 0:10:36.760 --> 0:10:40.720 like that, just less more difficult to measure. But with 0:10:40.880 --> 0:10:43.240 increasing the demand and adoption of price must up over 0:10:43.320 --> 0:10:45.920 time that it's a known known. The thing I'm worried 0:10:45.920 --> 0:10:48.720 about right now is this bigger unknown of the world 0:10:48.760 --> 0:10:52.439 tilting towards the recession, risk assets kind of tilting downward, 0:10:52.679 --> 0:10:55.400 and the FED still tightening. In bitcoin and in cryptos 0:10:55.440 --> 0:10:57.880 among the riskiest of acts. So I'm worried that we're 0:10:57.920 --> 0:11:00.880 more likely to have peaked around thirty have some pressure 0:11:00.920 --> 0:11:03.280 for a while, particularly if we see more in the 0:11:03.280 --> 0:11:05.720 screen we're seeing today with the stock market going lower 0:11:05.720 --> 0:11:09.320 and NASDA kind trickling down below that thirteen thousand level. 0:11:10.640 --> 0:11:12.480 Mike, let's go back to basics a little bit. A 0:11:12.520 --> 0:11:16.640 harving or harthening as it's otherwise known, reducing the amount 0:11:17.760 --> 0:11:20.400 of tokens that bitcoin minors get as a reward for 0:11:20.480 --> 0:11:24.560 their work. What is the link between that activity and 0:11:24.679 --> 0:11:28.800 the anticipation of the price of bitcoin going higher. What 0:11:28.840 --> 0:11:30.040 are the mechanics behind that. 0:11:31.240 --> 0:11:36.240 So right now the most you can we can produce 0:11:36.400 --> 0:11:39.000 on a daily basis of bitcoin mine is nine hundred 0:11:39.040 --> 0:11:41.319 coins a day. Before that was eighteen hundred before the 0:11:41.400 --> 0:11:43.320 last having, So you get the next having that's going 0:11:43.360 --> 0:11:45.120 to cut it back to four hundred and fifty coins 0:11:45.160 --> 0:11:47.760 a day. It's by code, and then four years from 0:11:47.800 --> 0:11:49.560 now it's going to do it again. That's just the 0:11:49.600 --> 0:11:52.120 beauty of the code. It has to go down the 0:11:52.120 --> 0:11:53.120 supply decline. 0:11:53.200 --> 0:11:56.439 So right now the total supply is running around two percent, 0:11:57.080 --> 0:11:59.640 so right around the historical measure of goal. A year 0:11:59.640 --> 0:12:02.200 from now it's going to drop below one percent because 0:12:02.400 --> 0:12:05.040 it's just definable diminishing. And that's the beauty of it. 0:12:05.240 --> 0:12:07.720 All those miners are fighting for more and more. But 0:12:07.760 --> 0:12:10.199 it's a unique thing about what bitcoin does. No other 0:12:10.280 --> 0:12:13.040 commodity does that. You can say prices go up, supply 0:12:13.160 --> 0:12:15.640 comes on tip. Particularly with gold it does too, but 0:12:15.800 --> 0:12:18.360 most notably learned that when crude all last year. But 0:12:18.480 --> 0:12:21.160 what's happening now is people are anticipating now it's going 0:12:21.200 --> 0:12:22.400 to just do what it did in the past. And 0:12:22.480 --> 0:12:24.520 I think the thing that's different this time, ed is 0:12:24.760 --> 0:12:27.920 bitcoin was born out of the last great financial crisis 0:12:27.960 --> 0:12:30.280 in that recession. I think this one's going to define it, 0:12:30.840 --> 0:12:33.120 but it's going to be its first recession, and I 0:12:33.160 --> 0:12:35.040 think it's the first time we might see that the 0:12:35.160 --> 0:12:37.440 S and B five hundred drop more than twenty percent 0:12:37.640 --> 0:12:40.720 into a recession, which should pull all risk acids lower. 0:12:40.760 --> 0:12:42.360 So I think i'll end with this one thing you 0:12:42.400 --> 0:12:44.600 saw today was a little bit off topic, but similar 0:12:44.640 --> 0:12:49.319 as record shorts and ten year thirty year in bond futures, 0:12:49.400 --> 0:12:53.000 might be indicative of gold continued toll performing, Bitcoin being 0:12:53.040 --> 0:12:54.360 pushed a little to the waistside. 0:12:55.880 --> 0:12:58.679 All right, Mike mcglom Bloomberg Intelligence on a roll out 0:12:58.720 --> 0:13:01.520 of Miami. Thank you. Meanwhile, Caroline, don't know if you 0:13:01.520 --> 0:13:04.839 saw this one. Franklin Templeton says it's money market fund 0:13:04.880 --> 0:13:08.160 used to record share ownership on a blockchain, is seeing 0:13:08.280 --> 0:13:13.040 inflows specifically from crypto related firms. The fund's total assets 0:13:13.160 --> 0:13:16.000 increased to around two hundred and seventy million dollars. This 0:13:16.120 --> 0:13:19.680 is a fund that invests in US government securities, does 0:13:19.720 --> 0:13:22.720 not hold crypto assets, but it's who's putting the money in. 0:13:23.040 --> 0:13:26.120 Yeah, because remember a lot of at the moment, these 0:13:26.520 --> 0:13:30.080 overall crypto investors or crypto related companies, they've just lost 0:13:30.080 --> 0:13:32.040 a load of their financial infrastructure with some of the 0:13:32.080 --> 0:13:34.600 bank's silver gate. We think, of course Signature Bank coming 0:13:34.600 --> 0:13:36.560 out of the market. They want safer places to put 0:13:36.559 --> 0:13:38.120 their money. Of course, you kind of have to be 0:13:38.200 --> 0:13:40.320 banked to get into a money market fund, even if 0:13:40.360 --> 0:13:44.280 it's Franklin Templeton. But I suppose it is no surprise 0:13:44.480 --> 0:13:46.040 that if you're going to look for a money market 0:13:46.040 --> 0:13:49.720 fund to gain you exposure, safe exposure overall, you're likely 0:13:49.800 --> 0:13:51.960 to go to one that's at least in some way 0:13:52.040 --> 0:13:54.400 in your line of sight and liking. And of course 0:13:54.400 --> 0:13:57.160 the Franklin on shae US government money funds they're going 0:13:57.200 --> 0:13:59.000 to like that. There's sort of play there, isn't there, 0:13:59.000 --> 0:14:00.760 And at the moment it's off likely to be on 0:14:00.880 --> 0:14:01.920 chain without Benji coin. 0:14:02.920 --> 0:14:04.920 We saw the vcs do it, and now we're seeing 0:14:04.920 --> 0:14:07.160 the industry itself do it with their own money. Let's 0:14:07.160 --> 0:14:10.240 continue talking with the crypto market. Sunny Singers here with 0:14:10.360 --> 0:14:13.520 more insights. The CEO of CS Labs twenty one in 0:14:13.640 --> 0:14:17.720 stealth mode, but also of course a well known person 0:14:17.760 --> 0:14:20.680 in this industry. Let's go straight actually to the harving 0:14:20.800 --> 0:14:23.520 or the harvining. What do you make of that? 0:14:23.880 --> 0:14:25.400 Yeah, it happens everything years. 0:14:25.640 --> 0:14:27.640 You're a believer in the logic behind it. 0:14:27.880 --> 0:14:30.880 Yes, it makes sure like central governments can keep producing 0:14:31.360 --> 0:14:34.120 new currency, which creates inflation. Bitcoin was created the other 0:14:34.160 --> 0:14:37.360 way to reduce the supply, which makes it more deflation area. 0:14:37.440 --> 0:14:39.920 So it's a great mechanism they built into the system, 0:14:40.200 --> 0:14:43.480 and it happens every four years, and it's scheduled to 0:14:43.520 --> 0:14:46.480 happen next April twenty seventh, round rough with that date, 0:14:47.080 --> 0:14:49.160 and so right around a year from now, and you're 0:14:49.160 --> 0:14:51.680 gonna start seeing a lot of media frenzy start happening. 0:14:51.840 --> 0:14:54.240 Six months to you know, rout and that should start happening, 0:14:54.240 --> 0:14:55.560 and then you start seeing the price run up a 0:14:55.560 --> 0:14:55.920 little bit. 0:14:56.960 --> 0:15:00.920 Look, it's funny to overall think about how much we've 0:15:00.960 --> 0:15:04.520 seen this torrid time within crypto, whether it's actually the 0:15:04.680 --> 0:15:07.200 likes of Bitcoin eighth sort of taking up a lot 0:15:07.200 --> 0:15:08.680 of the oxygen in the room when it comes to 0:15:08.720 --> 0:15:10.240 allocation at the moment, or at least. 0:15:10.080 --> 0:15:11.080 Where the rallies have been. 0:15:11.440 --> 0:15:13.640 Then there's also the question we were just talking about 0:15:13.640 --> 0:15:15.640 the fact that a lot of crypto players find themselves 0:15:15.640 --> 0:15:18.240 without the banking infrastructure that were used to the signatures, 0:15:18.240 --> 0:15:21.120 the silver banks or the overall silver gates as well. 0:15:21.480 --> 0:15:24.080 How difficult is it in the crypto space for you? 0:15:25.200 --> 0:15:25.920 It's very bad. 0:15:25.960 --> 0:15:27.640 So my company we just raised a four million dollar 0:15:27.680 --> 0:15:29.560 seed around. We did it in forty five days, which 0:15:29.600 --> 0:15:31.720 is great from an all starting of crypto investors as 0:15:31.760 --> 0:15:35.200 all autritional investors, But the mood has definitely changed. The 0:15:35.400 --> 0:15:39.400 banking regulations have become increasingly hard. Getting banks is increasingly hard. 0:15:39.440 --> 0:15:42.120 Everything that could go wrong has gone wrong for the 0:15:42.120 --> 0:15:45.040 crypto industry. And yet the price of bitcoin has rallied 0:15:45.040 --> 0:15:47.480 from sixteen thousand to almost thirty thousand in the last 0:15:47.480 --> 0:15:49.960 six months, which is pretty remarkable, and I wouldn't be 0:15:50.000 --> 0:15:51.960 surprised if bitcoin hits forty thousand this year. 0:15:52.400 --> 0:15:54.480 Can I just jump in on that seed stage? Just 0:15:54.600 --> 0:15:58.160 broadly speaking, how difficult was that following the collapse of 0:15:58.880 --> 0:16:01.880 Silicon Valley Bank? For how long you would negotiate around 0:16:01.880 --> 0:16:05.400 But you're basically taking a crypto proposition to investors who 0:16:05.480 --> 0:16:09.160 are a bit more cautious than perhaps they previously were 0:16:09.280 --> 0:16:10.080 in that industry. 0:16:10.200 --> 0:16:12.320 Yes, it was much harder and we wanted to get 0:16:12.360 --> 0:16:15.080 a mix of crypto investors as well as silicon value investors. 0:16:15.280 --> 0:16:17.040 And the silicon value investors. 0:16:16.680 --> 0:16:18.760 Might have loved the idea, but they're no longer doing 0:16:18.800 --> 0:16:21.280 crypto investing anymore. A while of teams said they're now 0:16:21.280 --> 0:16:23.680 doing AI and pivot, so it's much more difficult that way, 0:16:23.880 --> 0:16:25.520 and they would rarely to wire our money the day 0:16:25.520 --> 0:16:27.800 before SVB had the issues, and we're going to SVB 0:16:27.880 --> 0:16:30.120 two as we did away that three weeks too. So again, 0:16:30.160 --> 0:16:32.320 everything that could go wrong has gone wrong in the 0:16:32.320 --> 0:16:34.080 crypto space for the last year, I would. 0:16:33.840 --> 0:16:36.480 Say, and that's not even talking about some of the 0:16:36.480 --> 0:16:39.600 overall regulatory headwinds that still everyone is very worried about 0:16:39.640 --> 0:16:41.600 when it comes to how people are going to analyze 0:16:41.640 --> 0:16:42.720 the SEC is going to look. 0:16:42.640 --> 0:16:43.720 At some of these crypto assets. 0:16:44.040 --> 0:16:47.160 All these headlines you see Gemini thinking of a non 0:16:47.280 --> 0:16:50.560 US based derivative platform. We know that other key players 0:16:50.600 --> 0:16:55.040 are looking at licenses, crypto licensings in Bermuda. How tempting 0:16:55.120 --> 0:16:57.240 is it to take whatever you're building out of the 0:16:57.320 --> 0:16:58.200 United States. 0:16:58.640 --> 0:17:01.800 Yeah, and again companies that coin based Gemini, my previous company, 0:17:01.800 --> 0:17:03.840 bit pay. We try to play by the rules. Work 0:17:03.880 --> 0:17:05.800 with the SEC. We all got in New York bit licenses. 0:17:05.840 --> 0:17:07.720 We're trying to do it the right way. Fighting the 0:17:07.760 --> 0:17:10.000 SEC is now really getting a little harder to work with, 0:17:10.119 --> 0:17:12.240 and they keep changing their mind on things and becoming 0:17:12.280 --> 0:17:14.399 like coin based of Gema. It's trying to keep growing 0:17:14.800 --> 0:17:17.240 during Crypto Winner, it's hard for them to get full 0:17:17.640 --> 0:17:18.399 clarity on what to do. 0:17:18.520 --> 0:17:19.760 That's why they're looking offshore. 0:17:20.080 --> 0:17:23.600 And again ftxus FTX, which went out of business, was 0:17:23.680 --> 0:17:26.520 created because it compan called bit mechs random issues. And 0:17:26.600 --> 0:17:28.800 now with FTX gone, there's really a void in the 0:17:28.880 --> 0:17:32.080 international trading markets that's going to buyans instead, and companies 0:17:32.160 --> 0:17:34.280 like Gemini and coinbas see a big opportunity if they 0:17:34.280 --> 0:17:36.800 can get this derivers market and things like that that 0:17:36.880 --> 0:17:38.040 Bias has been focusing on. 0:17:38.320 --> 0:17:41.240 All right, Thanks to Sonny Saying CEO of cs Labs 0:17:41.240 --> 0:17:51.879 twenty one, which I hope to hit more about. Twitter's 0:17:51.960 --> 0:17:55.360 legal battles over its mass layoffs. Last Full continue to grow, 0:17:55.440 --> 0:17:59.080 with two more formal workers filing class action complaints at 0:17:59.119 --> 0:18:03.199 about two thousand Index employees pursuing claims in individual arbitration. 0:18:03.320 --> 0:18:06.720 Let's bring in Bloomberg. Sarah Fryar for more two thousand, 0:18:08.000 --> 0:18:10.040 making claims. It's quite a big chunk of the workforce 0:18:10.119 --> 0:18:10.840 that was laid off. 0:18:11.520 --> 0:18:15.160 And it's all in individual arbitration and mass arbitration, which 0:18:15.880 --> 0:18:19.760 often when companies put the arbitration clauses into contracts to 0:18:19.880 --> 0:18:22.919 expect that they'll be able to get things done quietly 0:18:23.000 --> 0:18:25.600 behind the scenes. In this case, I don't think that's 0:18:25.640 --> 0:18:27.720 going to work. I think it's going to become a 0:18:27.920 --> 0:18:30.800 very arduous and expensive process for Twitter. 0:18:31.600 --> 0:18:35.760 Meanwhile, there's been several people completely well many people completely 0:18:35.800 --> 0:18:39.119 baffled by what's happening at Twitter in general, particularly around 0:18:39.520 --> 0:18:41.200 who's got those blue check. 0:18:41.080 --> 0:18:43.560 Marks who doesn't. It feels as though there's a lot 0:18:43.560 --> 0:18:44.560 of chaos there at the moment. 0:18:44.560 --> 0:18:46.320 I just want to listen into what Ron Reynolds had 0:18:46.359 --> 0:18:49.040 to say last week about the service to take a listen. 0:18:48.880 --> 0:18:51.800 Sarah, I don't know. I mean, I see they all 0:18:51.960 --> 0:18:56.320