1 00:00:03,520 --> 00:00:06,800 Speaker 1: From the heart of where innovation, money and power colli 2 00:00:07,640 --> 00:00:12,159 Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with 3 00:00:12,240 --> 00:00:27,880 Speaker 1: Emily Jay. I'm Emily changing San Francisco, and this is 4 00:00:27,880 --> 00:00:31,000 Speaker 1: Bloomberg Technology coming up in the next hour. Isolating Putin 5 00:00:31,120 --> 00:00:34,360 Speaker 1: and his allies from financial systems. The d o j's 6 00:00:34,520 --> 00:00:37,040 Speaker 1: newest task force will track the use of crypto to 7 00:00:37,120 --> 00:00:41,120 Speaker 1: evade sanctions, along with the jets, yachts, and other luxury 8 00:00:41,159 --> 00:00:45,120 Speaker 1: assets of Russian oligarchs. Our conversation with US Deputy Attorney 9 00:00:45,159 --> 00:00:49,160 Speaker 1: General Lisa Monaco plus Salesforce co CEO Brett Tylor, gives 10 00:00:49,200 --> 00:00:51,279 Speaker 1: us his view on how the war in Ukraine and 11 00:00:51,640 --> 00:00:55,520 Speaker 1: global economic uncertainty will impact global business off the back 12 00:00:55,560 --> 00:00:58,600 Speaker 1: of the company's earnings results, plus how their developer team 13 00:00:58,640 --> 00:01:02,840 Speaker 1: in Ukraine is faring and finance says the Exchange will 14 00:01:02,920 --> 00:01:06,800 Speaker 1: not impose a blanket van on Russian users. A unilateral 15 00:01:06,880 --> 00:01:10,760 Speaker 1: decision would be unethical, according to its CEO, or that 16 00:01:10,880 --> 00:01:22,880 Speaker 1: later this hour, the conflict in Ukraine continuing to intensify, 17 00:01:23,000 --> 00:01:25,720 Speaker 1: and with a Russian air strike hitting Kiev's main radio 18 00:01:25,760 --> 00:01:29,400 Speaker 1: and television tower, one thing remains clear. The war is 19 00:01:29,480 --> 00:01:33,479 Speaker 1: also one of control over information. Let's talk about all 20 00:01:33,520 --> 00:01:35,560 Speaker 1: that and more with Jane Litvineko. She is a Senior 21 00:01:35,560 --> 00:01:38,280 Speaker 1: Research Fellow at the Harvard Kennedy Store and Scene Center 22 00:01:38,319 --> 00:01:41,480 Speaker 1: on Media, Politics and Public Policy. Jane, you're also a 23 00:01:41,560 --> 00:01:45,840 Speaker 1: reporter and a Ukrainian yourself. Talk to us about the 24 00:01:45,880 --> 00:01:49,400 Speaker 1: state of Russian disc and misinformation and how it is 25 00:01:49,440 --> 00:01:53,480 Speaker 1: being used as a weapon right now. Well, I think 26 00:01:53,520 --> 00:01:56,360 Speaker 1: one important thing to understand is that Russia has been 27 00:01:56,360 --> 00:02:00,840 Speaker 1: spreading false information about Ukraine for years, uh, and use 28 00:02:01,000 --> 00:02:05,280 Speaker 1: some of that information as false justification to further invade 29 00:02:05,320 --> 00:02:07,800 Speaker 1: the country, um, during the war that has been going 30 00:02:07,880 --> 00:02:11,280 Speaker 1: on for eight years UM. And part of that mean 31 00:02:11,400 --> 00:02:17,320 Speaker 1: distorting Ukrainian history, distorting Ukrainian culture and people. But on 32 00:02:17,360 --> 00:02:23,360 Speaker 1: a more grainual level, it also meant videos uh that 33 00:02:24,040 --> 00:02:27,799 Speaker 1: purported to show something that they didn't actually show, um, 34 00:02:27,919 --> 00:02:33,280 Speaker 1: sort of vacantly justification for the war. So would you 35 00:02:33,320 --> 00:02:35,160 Speaker 1: say that President Putin has been using this as a 36 00:02:35,200 --> 00:02:39,680 Speaker 1: weapon to build up to this moment? Absolutely. Disinformation is 37 00:02:39,680 --> 00:02:43,000 Speaker 1: a huge weapon for the Russian government. We've seen it 38 00:02:43,040 --> 00:02:46,600 Speaker 1: in fourteen during the annexation of Crimea as well as 39 00:02:46,680 --> 00:02:52,160 Speaker 1: during the occupation of Eastern Ukraine. We saw during the 40 00:02:52,200 --> 00:02:55,680 Speaker 1: doubting of NH seventeen and we see it now. And 41 00:02:55,800 --> 00:02:58,600 Speaker 1: disinformation is a weapon that Putin has been using all 42 00:02:58,639 --> 00:03:02,559 Speaker 1: around the world UH in an attempt to undermine democracy, 43 00:03:02,639 --> 00:03:06,080 Speaker 1: which of course the US has felt intimately as well. 44 00:03:06,760 --> 00:03:09,240 Speaker 1: So how well do you think big tech platforms like 45 00:03:09,240 --> 00:03:12,720 Speaker 1: Facebook and Twitter and TikTok are handling this now? We've 46 00:03:12,760 --> 00:03:15,400 Speaker 1: seen some steps taken in the last couple of days. 47 00:03:15,400 --> 00:03:20,040 Speaker 1: Certainly it's not nearly enough, is my guest. Right from 48 00:03:20,080 --> 00:03:22,720 Speaker 1: the tracking that we're doing about the disinformation that we 49 00:03:22,760 --> 00:03:26,560 Speaker 1: see on social media. UH, there's steps have been good, 50 00:03:26,960 --> 00:03:30,600 Speaker 1: but limited and scatter shot. So there has been a 51 00:03:30,639 --> 00:03:33,800 Speaker 1: ban on our T and Sputnik in Europe, for instance, 52 00:03:34,000 --> 00:03:38,400 Speaker 1: but we don't see that same uh, that same band worldwide, 53 00:03:38,680 --> 00:03:42,360 Speaker 1: which raises a series of questions like why um our 54 00:03:42,440 --> 00:03:46,560 Speaker 1: T and Sputnik of course have huge audiences outside of Europe, 55 00:03:46,600 --> 00:03:53,000 Speaker 1: including in southern northern America. UM. We also see UM 56 00:03:53,160 --> 00:03:58,760 Speaker 1: direct television providers attempt to thwart Russian disinformation. UM. But again, 57 00:03:59,680 --> 00:04:04,440 Speaker 1: Russia is are very good. Russian disinformers particularly are very 58 00:04:04,480 --> 00:04:07,920 Speaker 1: good at getting around restrictions on social media, and as 59 00:04:07,920 --> 00:04:10,160 Speaker 1: a matter of fact, they're very well practiced around that. 60 00:04:10,760 --> 00:04:14,160 Speaker 1: This is also war that spans social media plot forms. 61 00:04:14,200 --> 00:04:17,120 Speaker 1: It's not just about the Big three that we're used 62 00:04:17,160 --> 00:04:21,160 Speaker 1: to North America. It's also about TikTok, It's also about Telegram. 63 00:04:21,440 --> 00:04:24,080 Speaker 1: There's really no social media network that's untouched by this. 64 00:04:24,720 --> 00:04:27,320 Speaker 1: Can you talk to us about how every day Ukrainians 65 00:04:27,480 --> 00:04:31,280 Speaker 1: are navigating they do they see the difference between information 66 00:04:31,600 --> 00:04:36,239 Speaker 1: and misinformation? How do they try to separate fact from fiction. 67 00:04:37,880 --> 00:04:43,599 Speaker 1: There's a gargantuan effort to essentially undermine Russian disinformation, either 68 00:04:43,760 --> 00:04:45,919 Speaker 1: as it comes in or before it comes in, and 69 00:04:45,920 --> 00:04:49,600 Speaker 1: there's a few different ways that both Ukrainians and outside 70 00:04:49,600 --> 00:04:53,040 Speaker 1: groups are doing this. Uh, the Ukrainian television channel in 71 00:04:53,120 --> 00:04:56,320 Speaker 1: Ukraine twenty four, which is a few different television channels 72 00:04:56,320 --> 00:05:01,040 Speaker 1: advanted together to provide around the clock coverage of the war, 73 00:05:02,120 --> 00:05:06,160 Speaker 1: are debunking disinformation in real time. There's also real information 74 00:05:06,200 --> 00:05:11,560 Speaker 1: exchange happening between Ukrainians who are filming scenes from the 75 00:05:11,600 --> 00:05:14,599 Speaker 1: war and are trying to figure out where was the 76 00:05:14,640 --> 00:05:17,520 Speaker 1: most recent attack, how many was how many were hurt. 77 00:05:17,960 --> 00:05:21,120 Speaker 1: And of course we see an open source intelligence community 78 00:05:21,720 --> 00:05:27,200 Speaker 1: which essentially gathers gathers digital breadcrumbs put those breadcrumbs together 79 00:05:27,279 --> 00:05:31,280 Speaker 1: for a fuller picture to essentially undermine Russian narratives. And 80 00:05:31,400 --> 00:05:34,800 Speaker 1: so that is why the Ukrainian voices that we see 81 00:05:34,839 --> 00:05:38,080 Speaker 1: online have been much more powerful than the Russian disinformation 82 00:05:38,080 --> 00:05:40,320 Speaker 1: that we see online. Look, we're in the middle of 83 00:05:40,320 --> 00:05:43,520 Speaker 1: a crisis, a war, right now. What can we do 84 00:05:43,720 --> 00:05:46,000 Speaker 1: in this moment? I know that you've pioneered a method 85 00:05:46,240 --> 00:05:50,480 Speaker 1: that sort of swiftly and excessively debunks some of this stuff. 86 00:05:50,600 --> 00:05:54,599 Speaker 1: How do we do that instantaneously? You know? I think 87 00:05:54,600 --> 00:05:57,040 Speaker 1: the main thing is to understand that the spoor is 88 00:05:57,080 --> 00:06:00,000 Speaker 1: not going to be over tomorrow and we will continue 89 00:06:00,000 --> 00:06:02,960 Speaker 1: you to see a big flood of videos and images 90 00:06:03,040 --> 00:06:05,040 Speaker 1: from on the ground all the time, and we need 91 00:06:05,080 --> 00:06:08,520 Speaker 1: to be prepared for that. One important thing to remember 92 00:06:08,720 --> 00:06:11,640 Speaker 1: is that there are reporters who are risking their lives 93 00:06:11,760 --> 00:06:16,080 Speaker 1: on the ground, both Ukrainian reporters and international reporters to 94 00:06:16,200 --> 00:06:19,839 Speaker 1: bring accurate information. I would also say that it's important 95 00:06:19,880 --> 00:06:24,200 Speaker 1: to be particularly cautious of images and videos that don't 96 00:06:24,240 --> 00:06:27,760 Speaker 1: have more than one angle because of how many images 97 00:06:27,760 --> 00:06:31,919 Speaker 1: and videos exist of the different attacks, and de contextualized 98 00:06:31,960 --> 00:06:36,840 Speaker 1: media in particular is something that has been has been 99 00:06:36,960 --> 00:06:40,920 Speaker 1: very prevalent, and so I understand that it's an unsatisfying 100 00:06:40,960 --> 00:06:44,280 Speaker 1: answer to say go to official news sources, But at 101 00:06:44,279 --> 00:06:48,200 Speaker 1: the moment, an individual will really struggle with the idea 102 00:06:48,279 --> 00:06:52,000 Speaker 1: of verifying a single video and whether it's accurate or not, 103 00:06:52,520 --> 00:06:55,560 Speaker 1: whereas newsrooms are extremely prepared for this and are putting 104 00:06:55,560 --> 00:06:58,200 Speaker 1: out so the best work they've ever done. All right, 105 00:06:58,320 --> 00:07:00,799 Speaker 1: Jane hard tat to you. I know, been a difficult 106 00:07:01,240 --> 00:07:03,840 Speaker 1: several days, but appreciate you shedding some light on this 107 00:07:03,920 --> 00:07:07,360 Speaker 1: with us today. Jane Livinetko, Harvard Senior Research Fellow, thank you. 108 00:07:08,120 --> 00:07:10,600 Speaker 1: Coming up Salesforce co CEO Brett Taylor on the back 109 00:07:10,600 --> 00:07:13,400 Speaker 1: of the company's latest earnings rapport plus his thoughts on 110 00:07:13,480 --> 00:07:31,160 Speaker 1: the global uncertainty aheads that's next. This is Bloomberg Salesforce 111 00:07:31,200 --> 00:07:33,400 Speaker 1: b Well Street estimates for its fourth quarter, with revenue 112 00:07:33,440 --> 00:07:36,240 Speaker 1: up more than and a strong forecast ahead as the 113 00:07:36,240 --> 00:07:39,080 Speaker 1: company works to integrate his twenty seven point seven billion 114 00:07:39,120 --> 00:07:43,160 Speaker 1: dollar acquisition of Slack. Brett Taylor, Salesforce co CEO with 115 00:07:43,480 --> 00:07:46,520 Speaker 1: me now who was promoted in the last quarter. Brett, 116 00:07:46,520 --> 00:07:48,800 Speaker 1: great to have you back with us. Look, it's an 117 00:07:48,800 --> 00:07:51,360 Speaker 1: inflection point in salesforces history and world history. And I 118 00:07:51,400 --> 00:07:54,160 Speaker 1: have to ask you about what's going on in Ukraine 119 00:07:54,480 --> 00:07:57,920 Speaker 1: and geopolitics right now. How concerned are you about what 120 00:07:58,000 --> 00:08:03,760 Speaker 1: this means for humanity be and the global economy and business. Well, 121 00:08:03,800 --> 00:08:07,320 Speaker 1: I want to start where you just started, which is humanity. 122 00:08:07,640 --> 00:08:10,040 Speaker 1: M our hearts go out to the people of Ukraine. 123 00:08:10,640 --> 00:08:15,600 Speaker 1: Watching this suffering plant in real time in the media 124 00:08:15,800 --> 00:08:19,080 Speaker 1: is just horrific. And what we at Salesforce don't really 125 00:08:19,080 --> 00:08:21,160 Speaker 1: have a presence in the region like everyone, we're trying 126 00:08:21,200 --> 00:08:23,760 Speaker 1: to show up as humanitarians to help the ufer into 127 00:08:23,760 --> 00:08:27,040 Speaker 1: the Ukrainian people and all the refugees in the region. UM. 128 00:08:27,080 --> 00:08:30,560 Speaker 1: Speaking to the economic impact, you know, we're there's a 129 00:08:30,600 --> 00:08:33,320 Speaker 1: lot of uncertainty in the economy right now, this war 130 00:08:33,600 --> 00:08:37,360 Speaker 1: in Europe which is horrific, inflation, the supply chain crisis. 131 00:08:38,040 --> 00:08:40,520 Speaker 1: Despite all of that, the one thing that's enduring is 132 00:08:40,679 --> 00:08:45,600 Speaker 1: a really investment in digital technologies. The accelerarization, acceleration of 133 00:08:45,600 --> 00:08:48,480 Speaker 1: the digitization of the economy that started by the pandemic 134 00:08:48,880 --> 00:08:51,880 Speaker 1: really continues sort of full speed ahead. UM. And you 135 00:08:51,920 --> 00:08:55,240 Speaker 1: really saw them in our our record performance this past year, 136 00:08:55,280 --> 00:08:58,000 Speaker 1: which were so grateful for in the face of all 137 00:08:58,000 --> 00:09:00,719 Speaker 1: this disruption, which is why we beat our q for 138 00:09:00,760 --> 00:09:03,000 Speaker 1: our guidance, raised our guidance for next year, and we 139 00:09:03,120 --> 00:09:05,959 Speaker 1: just continue to see momentum in all aspects of our business. 140 00:09:06,559 --> 00:09:10,319 Speaker 1: We've seen a number of companies self sanctioning Apple Netflix 141 00:09:10,360 --> 00:09:12,959 Speaker 1: to a certain extent. Forward, is that something that Salesforce 142 00:09:13,120 --> 00:09:16,719 Speaker 1: is considering in the moment. When it comes to Russia, well, 143 00:09:16,720 --> 00:09:18,440 Speaker 1: as I mentioned Emily, we don't really have a presence 144 00:09:18,440 --> 00:09:20,080 Speaker 1: in the region. We've never had an office there, we 145 00:09:20,080 --> 00:09:22,280 Speaker 1: don't have employees there, we don't have a material business 146 00:09:22,280 --> 00:09:24,959 Speaker 1: there um, So our focus has actually really been on 147 00:09:25,160 --> 00:09:27,400 Speaker 1: how can we use our business as a platform for change. 148 00:09:27,720 --> 00:09:30,480 Speaker 1: We made a one million dollar grant to help with 149 00:09:30,720 --> 00:09:33,640 Speaker 1: the refugee crisis and help use the suffering. The Ukrainian 150 00:09:33,679 --> 00:09:36,560 Speaker 1: people have been really hardened to see so many sales 151 00:09:36,600 --> 00:09:39,120 Speaker 1: Force employees show up and ask how they can help. 152 00:09:39,160 --> 00:09:41,319 Speaker 1: We have a number of employees with families in the region. 153 00:09:41,360 --> 00:09:43,600 Speaker 1: We're really trying to help out all of the sales 154 00:09:43,640 --> 00:09:47,120 Speaker 1: Force family in a time of global crisis and really 155 00:09:47,120 --> 00:09:48,920 Speaker 1: trying to have the humility to understand what can we 156 00:09:49,000 --> 00:09:52,240 Speaker 1: do to play our part in the humanitarian crisis. Now 157 00:09:52,440 --> 00:09:54,160 Speaker 1: I know you had a strong quarter. M and A 158 00:09:54,240 --> 00:09:57,199 Speaker 1: has been a key strategy to drive growth. You were 159 00:09:57,240 --> 00:09:59,400 Speaker 1: the chief architect of this Slack acquisition, and I know 160 00:09:59,400 --> 00:10:02,720 Speaker 1: you've ruled material M and A for the near future, 161 00:10:02,760 --> 00:10:07,040 Speaker 1: but could the changing global dynamic change that strategy. Could 162 00:10:07,040 --> 00:10:10,200 Speaker 1: you be open to it? You know, honestly, we're not 163 00:10:10,320 --> 00:10:12,880 Speaker 1: interested in material emin A and in your term, and 164 00:10:12,920 --> 00:10:15,520 Speaker 1: it's because we're so excited about Slack. You know, we 165 00:10:15,600 --> 00:10:18,840 Speaker 1: spent the past two years with this global pandemic in 166 00:10:18,920 --> 00:10:21,720 Speaker 1: different stages of the world, keeping people in their home 167 00:10:21,760 --> 00:10:25,040 Speaker 1: offices and keeping people away from their offices. Coming out 168 00:10:25,120 --> 00:10:28,760 Speaker 1: of this pandemic, as people reconnect, this idea that every 169 00:10:28,800 --> 00:10:32,000 Speaker 1: company needs a digital headquarters to connect their employees and 170 00:10:32,000 --> 00:10:34,800 Speaker 1: their partners because we are going to be working from anywhere. 171 00:10:34,960 --> 00:10:38,080 Speaker 1: And I think that's incredibly exciting. Um. You saw it 172 00:10:38,120 --> 00:10:41,319 Speaker 1: in just the incredible momentum of the Slack business this 173 00:10:41,360 --> 00:10:45,120 Speaker 1: past quarter. Slack actually grew their hundred thousand dollar customers 174 00:10:45,360 --> 00:10:48,360 Speaker 1: forty six percent year every year. This quarter we see 175 00:10:48,400 --> 00:10:50,520 Speaker 1: such great momentum. That's really my focus and that's the 176 00:10:50,559 --> 00:10:53,200 Speaker 1: focus of the management team. Now. I know you were 177 00:10:53,200 --> 00:10:56,000 Speaker 1: listening to the segment earlier. You are also the chair 178 00:10:56,120 --> 00:10:59,000 Speaker 1: of Twitter's board. The subject of misinformation and how big 179 00:10:59,040 --> 00:11:03,160 Speaker 1: tech companies are handling it has been a very big topic. 180 00:11:03,240 --> 00:11:07,559 Speaker 1: How do you think Twitter is handling Russian diss and misinformation? 181 00:11:07,600 --> 00:11:10,320 Speaker 1: What more do you think platforms like Twitter and Facebook 182 00:11:10,320 --> 00:11:13,640 Speaker 1: and TikTok can do well? First, I just want to 183 00:11:13,640 --> 00:11:16,280 Speaker 1: express my confidence in Prague, the new see of Twitter, 184 00:11:16,360 --> 00:11:19,480 Speaker 1: and the Twitter management team and helping the company navigate 185 00:11:19,520 --> 00:11:22,760 Speaker 1: this crisis. Um. As your previous guests alluded to, these 186 00:11:22,760 --> 00:11:26,040 Speaker 1: are some of the most complex and sothisticated problems any 187 00:11:26,080 --> 00:11:28,880 Speaker 1: technology company is facing right now. UM. I think it's 188 00:11:28,880 --> 00:11:31,800 Speaker 1: also shown the importance of Twitter as a platform for 189 00:11:31,840 --> 00:11:34,680 Speaker 1: public conversation, as so much of this plays out on 190 00:11:34,720 --> 00:11:38,119 Speaker 1: the platform. UM So, I know these are incredibly complex 191 00:11:38,120 --> 00:11:40,840 Speaker 1: and nuanced issues. I really enjoyed the previous segment, and 192 00:11:40,920 --> 00:11:42,439 Speaker 1: what I can say is I just have faith in 193 00:11:42,480 --> 00:11:44,720 Speaker 1: Prague and the managing team and Twitter and helping the 194 00:11:44,720 --> 00:11:48,199 Speaker 1: company navigate this on behalf of all Twitter stakeholders. Now, 195 00:11:48,320 --> 00:11:50,760 Speaker 1: last quick question, look, Salesforce shares are down from a 196 00:11:50,840 --> 00:11:53,680 Speaker 1: high in November. Why do you think there's this disconnect 197 00:11:53,679 --> 00:11:56,080 Speaker 1: between the optimism I hear from you that I hear 198 00:11:56,120 --> 00:12:00,839 Speaker 1: from Mark and the stock price. Yeah, we just put 199 00:12:00,920 --> 00:12:03,040 Speaker 1: up the best year in our company's history, the best 200 00:12:03,120 --> 00:12:05,480 Speaker 1: clurer raise our guides for this year. I cannot be 201 00:12:05,559 --> 00:12:09,480 Speaker 1: more excited about the future of salesforces business really across 202 00:12:09,559 --> 00:12:13,040 Speaker 1: all parts of our portfolio. We're twenty three years old 203 00:12:13,080 --> 00:12:16,839 Speaker 1: next week. Our sales cloud grew sev this year and 204 00:12:17,000 --> 00:12:20,480 Speaker 1: over six billion dollar revenue run rate. Slack is doing well. 205 00:12:20,800 --> 00:12:23,840 Speaker 1: Organic and organic investments have been never been doing better. 206 00:12:24,120 --> 00:12:26,400 Speaker 1: And as you know that, I think the stock price 207 00:12:26,440 --> 00:12:29,280 Speaker 1: will follow. We know we uh you know, show up 208 00:12:29,280 --> 00:12:32,280 Speaker 1: for our customers, drive performance for the company, show for 209 00:12:32,320 --> 00:12:34,720 Speaker 1: all of our stakeholders. We believe in the long run, 210 00:12:34,840 --> 00:12:38,720 Speaker 1: our stock price will follow. All right, Salesforce co CEO 211 00:12:38,800 --> 00:12:40,600 Speaker 1: Brett Taylor. Always good to have you, Thank you so 212 00:12:40,679 --> 00:12:52,319 Speaker 1: much for stopping by. Welcome back to Bloomberg Technology and 213 00:12:52,400 --> 00:12:54,720 Speaker 1: Emily Check in San Francisco. As we watched the war 214 00:12:54,760 --> 00:12:58,360 Speaker 1: in Ukraine unfold, companies continue to reevaluate their business ties 215 00:12:58,400 --> 00:13:02,000 Speaker 1: to Russia in light of the invasion. Apple for Netflix 216 00:13:02,040 --> 00:13:04,200 Speaker 1: just to name a few. This while many tech companies 217 00:13:04,240 --> 00:13:07,720 Speaker 1: rely on a deep bench of tech talent in Ukraine itself. 218 00:13:07,960 --> 00:13:10,000 Speaker 1: For more on this, I'm joined by Andrea wall Nisi 219 00:13:10,120 --> 00:13:12,480 Speaker 1: is a general partner at Manhattan Venture Partners of Venture 220 00:13:12,520 --> 00:13:15,600 Speaker 1: Capital from investing in global pre I p O companies 221 00:13:16,040 --> 00:13:18,960 Speaker 1: several in Europe, including Klarna and Revolute. Andrea, thank you 222 00:13:19,000 --> 00:13:21,040 Speaker 1: so much for joining us. A lot of people don't 223 00:13:21,040 --> 00:13:24,679 Speaker 1: know that Ukraine has a huge developer community. How many 224 00:13:24,760 --> 00:13:28,920 Speaker 1: of your portfolio company companies rely on developers in Ukraine 225 00:13:28,960 --> 00:13:32,080 Speaker 1: and how are they being impacted by this? Sure? Sure, 226 00:13:32,120 --> 00:13:35,679 Speaker 1: Thanks so much, Emily. So overall, I would say if 227 00:13:35,720 --> 00:13:38,679 Speaker 1: we look at the global landscape first around the developer 228 00:13:38,720 --> 00:13:44,040 Speaker 1: talent across the globe, over of the activity in late 229 00:13:44,080 --> 00:13:48,439 Speaker 1: stage companies has some level of presence in Ukraine and 230 00:13:48,480 --> 00:13:52,000 Speaker 1: specifically very much so around engineering. And when we look 231 00:13:52,000 --> 00:13:55,160 Speaker 1: at that breakdown even further, the majority of the UK 232 00:13:56,000 --> 00:13:59,839 Speaker 1: brings in engineering talent from Ukraine. So that's just incredible. 233 00:14:00,120 --> 00:14:03,560 Speaker 1: Realize with our teams which are very much so focused 234 00:14:03,559 --> 00:14:06,160 Speaker 1: on the late stage pre I p O companies, they 235 00:14:06,200 --> 00:14:09,640 Speaker 1: have pockets of their engineering product teams that we're seeing 236 00:14:09,800 --> 00:14:13,520 Speaker 1: are centralized in the Ukraine. And that's nearly half of 237 00:14:13,559 --> 00:14:16,439 Speaker 1: our larger portfolio companies that are in that late stage 238 00:14:16,760 --> 00:14:19,400 Speaker 1: and several of them, as you mentioned Revolute Klarna are 239 00:14:19,400 --> 00:14:22,360 Speaker 1: a couple that are based overseas and are very much so, 240 00:14:22,520 --> 00:14:25,640 Speaker 1: you know, boots on the ground and addressing this from there. So, 241 00:14:25,680 --> 00:14:29,840 Speaker 1: how is this impacting the developer community in Ukraine as 242 00:14:29,880 --> 00:14:33,240 Speaker 1: far as we know, and how our founders thinking about 243 00:14:33,280 --> 00:14:35,600 Speaker 1: this when they're trying to stay staffed and scale up 244 00:14:35,600 --> 00:14:39,560 Speaker 1: their businesses. Yeah, So what I'm seeing as a global 245 00:14:39,640 --> 00:14:44,040 Speaker 1: message is to be helpful, be empathetic, but be pragmatic 246 00:14:44,480 --> 00:14:47,040 Speaker 1: and overall with the founders who are really block and 247 00:14:47,080 --> 00:14:51,160 Speaker 1: tackling from other global hubs such as the US. Many 248 00:14:51,200 --> 00:14:55,040 Speaker 1: of them are sending out a massive signal to their developers, 249 00:14:55,080 --> 00:14:58,560 Speaker 1: to the tech teams that they have overseas, especially in Ukraine, 250 00:14:58,960 --> 00:15:01,960 Speaker 1: offering any level of support. But what I am also 251 00:15:02,040 --> 00:15:05,080 Speaker 1: seeing very much so is that founders, executives and board 252 00:15:05,120 --> 00:15:09,080 Speaker 1: members are being asked to be incredibly realistic around the 253 00:15:09,160 --> 00:15:12,240 Speaker 1: impact of what's going on. And when I say impact, 254 00:15:12,280 --> 00:15:14,440 Speaker 1: it's not just in the near term, but over the 255 00:15:14,480 --> 00:15:18,280 Speaker 1: next twelve months. How will impact things like the product roadmap, 256 00:15:18,680 --> 00:15:23,600 Speaker 1: the financial projections and going forward plans of that business 257 00:15:23,640 --> 00:15:27,440 Speaker 1: and what that means to those teams that were centralized 258 00:15:27,520 --> 00:15:30,880 Speaker 1: in Ukraine who were spearheading those initiatives. So those are 259 00:15:30,920 --> 00:15:32,880 Speaker 1: a lot of the discussions that are happening within the 260 00:15:32,920 --> 00:15:36,040 Speaker 1: boardrooms in the late stage companies. Russia is also a 261 00:15:36,080 --> 00:15:40,080 Speaker 1: fairly large source of venture capital in tech startups around 262 00:15:40,120 --> 00:15:44,560 Speaker 1: the world. Are you seeing companies reconsider their ties to 263 00:15:44,680 --> 00:15:50,600 Speaker 1: Russian investors? Yeah, So overall, I think the general consensus 264 00:15:50,600 --> 00:15:53,360 Speaker 1: that we're seeing amongst the late stage and mid stage 265 00:15:53,760 --> 00:15:57,440 Speaker 1: venture community is that a lot of these relationships across 266 00:15:57,480 --> 00:16:01,320 Speaker 1: the globe started long before know there was ever the 267 00:16:01,520 --> 00:16:04,960 Speaker 1: tension that's really risen up, risen up to this level. 268 00:16:05,360 --> 00:16:07,560 Speaker 1: And so really I think it goes back to the 269 00:16:07,600 --> 00:16:11,320 Speaker 1: grassroots of what a relationship looks like between a company 270 00:16:11,320 --> 00:16:14,760 Speaker 1: and their investors, if that relationship was there prior. You know, 271 00:16:14,880 --> 00:16:18,880 Speaker 1: Obviously those companies are still harvesting those relationships and realizing 272 00:16:18,920 --> 00:16:22,520 Speaker 1: what that will look like going forward. UM. For companies 273 00:16:22,560 --> 00:16:24,880 Speaker 1: that are raising rounds of funding right now, they are 274 00:16:24,960 --> 00:16:28,880 Speaker 1: having discussions with investors who might be located in Russia 275 00:16:29,000 --> 00:16:32,120 Speaker 1: in Ukraine and asking whether or not there's going to 276 00:16:32,200 --> 00:16:35,000 Speaker 1: be any imminent delays, which obviously we're seeing by way 277 00:16:35,040 --> 00:16:39,080 Speaker 1: of the banking system. UM around deploying the capital needed 278 00:16:39,240 --> 00:16:40,880 Speaker 1: is part of rounds of funding. But I don't know 279 00:16:40,880 --> 00:16:43,800 Speaker 1: if I'm necessarily seeing a complete shift in the relationships. 280 00:16:43,800 --> 00:16:47,000 Speaker 1: Of course, there are plenty phenomenal people in Russia who 281 00:16:47,080 --> 00:16:50,600 Speaker 1: obviously had zero, you know, uh intent to see any 282 00:16:50,600 --> 00:16:52,480 Speaker 1: of this happen. So I don't know if I see 283 00:16:52,520 --> 00:16:55,600 Speaker 1: a general shift, but it definitely is a scary signal 284 00:16:55,680 --> 00:16:58,160 Speaker 1: around how the flow of funds works and rounds of 285 00:16:58,160 --> 00:17:01,880 Speaker 1: funding going forward. Well, how is fundraising being impacted right now? 286 00:17:01,880 --> 00:17:06,520 Speaker 1: It certainly seems like global and and fundraising announcements have slowed. 287 00:17:06,880 --> 00:17:09,600 Speaker 1: Do you do you think we're going to see a 288 00:17:09,680 --> 00:17:16,760 Speaker 1: slowdown in venture capital invested because of the uncertain macroeconomic environment. Yeah, so, 289 00:17:16,800 --> 00:17:19,600 Speaker 1: you know, I truly truly stick with the belief that 290 00:17:19,680 --> 00:17:22,320 Speaker 1: tech is the new gold and the world is going 291 00:17:22,359 --> 00:17:25,320 Speaker 1: to continue looking a lot more like Ready Player one 292 00:17:25,560 --> 00:17:28,320 Speaker 1: more than it ever would look like Mad Max going forward, 293 00:17:28,680 --> 00:17:31,719 Speaker 1: and it's not slowing down. So with that in mind, 294 00:17:31,880 --> 00:17:34,240 Speaker 1: I mean, I don't see that there's generally a shift 295 00:17:34,280 --> 00:17:37,840 Speaker 1: in mindset for a slowdown in venture capital dollars being deployed, 296 00:17:38,160 --> 00:17:41,200 Speaker 1: but just in terms of the realistic expectations for how 297 00:17:41,240 --> 00:17:44,760 Speaker 1: companies should be valued, maybe you know, the desire to 298 00:17:44,880 --> 00:17:48,600 Speaker 1: be a hyper growth company will you know, exist long 299 00:17:48,840 --> 00:17:53,400 Speaker 1: after the turmoil ceases. But the realistic expectations are being 300 00:17:53,440 --> 00:17:56,240 Speaker 1: set around how we should value these businesses and how 301 00:17:56,280 --> 00:18:00,000 Speaker 1: they should be pegged to their public market comparable business 302 00:18:00,200 --> 00:18:03,159 Speaker 1: is all right, Andrea wall Nate, thanks for giving us 303 00:18:03,280 --> 00:18:07,760 Speaker 1: your perspective on all this. Manhattan Venture partners appreciate it well. 304 00:18:07,800 --> 00:18:09,600 Speaker 1: The conflict in Ukraine and the impact on the global 305 00:18:09,600 --> 00:18:12,000 Speaker 1: economy top of mind for CEOs around the world, as 306 00:18:12,000 --> 00:18:14,480 Speaker 1: we discussed. I spoke earlier with Anthony Nodo, the CEO 307 00:18:14,640 --> 00:18:17,200 Speaker 1: so FI, which aims to be a one stop shop 308 00:18:17,280 --> 00:18:21,080 Speaker 1: for customers financial need. He's also paying a close attention 309 00:18:21,119 --> 00:18:23,800 Speaker 1: to rate hikes and inflation and the impact the war 310 00:18:23,880 --> 00:18:26,400 Speaker 1: might have on all of that. We spoke with note 311 00:18:26,520 --> 00:18:28,640 Speaker 1: along with my colleague Matt Miller, take a quick listen 312 00:18:28,760 --> 00:18:31,560 Speaker 1: to that conversation. So far has a history of living 313 00:18:31,600 --> 00:18:35,840 Speaker 1: through tremendous cimlicality and volatility. Um We started two thousand 314 00:18:35,840 --> 00:18:38,560 Speaker 1: and twenty one with a very different economy and backdrop 315 00:18:39,160 --> 00:18:41,000 Speaker 1: for the year when we set our goals for the year. 316 00:18:41,119 --> 00:18:45,320 Speaker 1: We just reported our third consecutive quarter of record revenue growth, 317 00:18:45,600 --> 00:18:48,680 Speaker 1: up more than We also had a record. Member growth 318 00:18:48,680 --> 00:18:51,120 Speaker 1: and product growth are really a testament to our one 319 00:18:51,160 --> 00:18:54,320 Speaker 1: stop shop strategy and our ability to meet our members 320 00:18:54,359 --> 00:18:57,240 Speaker 1: needs across their entire financial lives and doing it even 321 00:18:57,280 --> 00:19:01,040 Speaker 1: more efficiently with a full year profitability. So yes, the 322 00:19:01,119 --> 00:19:04,080 Speaker 1: environment is very volatile. Rates are going to increase. That's 323 00:19:04,080 --> 00:19:06,960 Speaker 1: all reflected in our outlook for two thousand and twenty two, 324 00:19:07,200 --> 00:19:09,399 Speaker 1: and we're calling for over one point five billion of 325 00:19:09,440 --> 00:19:14,080 Speaker 1: revenue and eighty million dollars of ibadah and seeing really 326 00:19:14,119 --> 00:19:17,000 Speaker 1: strong growth in our member base and product race here 327 00:19:17,040 --> 00:19:19,639 Speaker 1: in Q one, in addition to the demand we have 328 00:19:19,720 --> 00:19:22,840 Speaker 1: for a technology platform with Galleos, so we're benefiting from 329 00:19:22,880 --> 00:19:26,080 Speaker 1: secretary trends. We have to absolutely deal with the volatility 330 00:19:26,119 --> 00:19:30,480 Speaker 1: of the cyclicality of rates and inflation and monetary policy, 331 00:19:30,560 --> 00:19:33,920 Speaker 1: but it's all part of the normat so far. Now. 332 00:19:33,960 --> 00:19:37,359 Speaker 1: Obviously there are huge humanitarian concerns given what's happening with 333 00:19:37,440 --> 00:19:40,359 Speaker 1: Russia's assault on Ukraine. I know you're a veteran yourself, 334 00:19:40,400 --> 00:19:43,880 Speaker 1: and I'm curious what sort of unique perspective you bring 335 00:19:43,920 --> 00:19:46,880 Speaker 1: to this about what this means for the world and 336 00:19:47,000 --> 00:19:52,200 Speaker 1: for global business. It's absolutely try to see that people 337 00:19:52,200 --> 00:19:54,560 Speaker 1: have to live in fear. Now that that fear of 338 00:19:54,960 --> 00:19:58,080 Speaker 1: threat of violence has become a reality. And um, you know, 339 00:19:58,280 --> 00:20:01,480 Speaker 1: ultimately we have a responsibilit is a country. We have 340 00:20:01,520 --> 00:20:05,040 Speaker 1: a responsibility as a as a nation to help those 341 00:20:05,119 --> 00:20:08,040 Speaker 1: that can't help themselves. Obviously, the people of Ukraine are 342 00:20:08,040 --> 00:20:10,720 Speaker 1: putting up a heck of a fight and um, but 343 00:20:10,880 --> 00:20:14,719 Speaker 1: they're under armed and under restored relative to a power 344 00:20:14,880 --> 00:20:18,920 Speaker 1: like the like Russia, the former Soviet Union. Um. And ultimately, 345 00:20:19,000 --> 00:20:21,560 Speaker 1: sanctions are the first step, but inherently they will likely 346 00:20:21,600 --> 00:20:25,159 Speaker 1: have to be more actions down the road. Um. We 347 00:20:25,200 --> 00:20:27,760 Speaker 1: have to ensure that they have the ability to be 348 00:20:27,800 --> 00:20:30,920 Speaker 1: a sovereign nation and um and live live a life 349 00:20:31,040 --> 00:20:34,560 Speaker 1: of freedom relatives of the suppression of the of the Russians. Now, 350 00:20:34,560 --> 00:20:38,040 Speaker 1: I understand you do hold some crypto and Sophie obviously 351 00:20:38,080 --> 00:20:41,639 Speaker 1: offers crypto services. Now what do you read into this 352 00:20:41,880 --> 00:20:46,800 Speaker 1: kind of decoupling we've seen of bitcoin from global equities 353 00:20:47,000 --> 00:20:51,399 Speaker 1: and you know why that is indeed happening. Yeah, the 354 00:20:51,440 --> 00:20:54,800 Speaker 1: trending cryptocurrency. You know, it's an unproven asset. I want 355 00:20:54,800 --> 00:20:57,360 Speaker 1: to make sure that's clear. It's highly violent. When it's 356 00:20:57,440 --> 00:20:59,480 Speaker 1: very risky, we do offer it for our members to 357 00:20:59,520 --> 00:21:02,719 Speaker 1: be able to buy thirty different cryptocurrencies. We do provide 358 00:21:02,760 --> 00:21:04,919 Speaker 1: that education and warning that they could lose all their 359 00:21:04,920 --> 00:21:07,920 Speaker 1: money and recommend they only allocate a small percentage of 360 00:21:07,960 --> 00:21:10,640 Speaker 1: their assets to it um. But it is an asset 361 00:21:10,680 --> 00:21:13,479 Speaker 1: that is providing a unique value proposition for a variety 362 00:21:13,480 --> 00:21:17,560 Speaker 1: of different constituencies, and that's what's really driving the volatility um. 363 00:21:17,600 --> 00:21:20,040 Speaker 1: The decoupling you're seeing could be driven by a number 364 00:21:20,040 --> 00:21:23,200 Speaker 1: of different factors. I really don't want to speculate on 365 00:21:23,480 --> 00:21:26,480 Speaker 1: what's driving it um, but it is a new asset 366 00:21:26,560 --> 00:21:29,960 Speaker 1: that people are using to accomplish different objectives, and that 367 00:21:30,000 --> 00:21:33,480 Speaker 1: has been what's driven the volatility um. We have been 368 00:21:33,600 --> 00:21:36,560 Speaker 1: very smart about making sure we give people selection, but 369 00:21:36,640 --> 00:21:39,119 Speaker 1: we also give them the ability to do recurring investments 370 00:21:39,119 --> 00:21:42,520 Speaker 1: and dollar costs averaging into something that is as volatile 371 00:21:42,720 --> 00:21:45,480 Speaker 1: as it has been well. And it's the the ability 372 00:21:45,560 --> 00:21:49,640 Speaker 1: that um so fi users have to invest across platforms 373 00:21:49,640 --> 00:21:51,879 Speaker 1: that I find most interesting. I talk with my co anchor, 374 00:21:51,920 --> 00:21:55,320 Speaker 1: Paul Sweeney, with your head of investment strategy, Liz Young, 375 00:21:55,640 --> 00:21:58,520 Speaker 1: on a regular basis, and you know, she sells the 376 00:21:58,520 --> 00:22:03,159 Speaker 1: product like no other. Or how much of a lift 377 00:22:03,440 --> 00:22:06,800 Speaker 1: did you get from the super Bowl and introducing you know, 378 00:22:06,880 --> 00:22:09,399 Speaker 1: new customers um to the things that they can do 379 00:22:09,440 --> 00:22:13,159 Speaker 1: on so far. Yeah, so the Super Bowl occurred in 380 00:22:13,280 --> 00:22:15,639 Speaker 1: first quarter of two thousand and twenty two, which we 381 00:22:15,680 --> 00:22:19,240 Speaker 1: haven't reported yet, but a result yesterday saw a big 382 00:22:19,280 --> 00:22:23,359 Speaker 1: benefit from having the National Football League Association and the 383 00:22:23,440 --> 00:22:27,240 Speaker 1: relationship with the Rams and Chargers and Sofi Stadium. We 384 00:22:27,359 --> 00:22:31,040 Speaker 1: benefited from having twelve home games at the stadium, five 385 00:22:31,080 --> 00:22:34,200 Speaker 1: of them were on national prime time television, and we're 386 00:22:34,240 --> 00:22:37,359 Speaker 1: able to reach twenty two million unique households on average 387 00:22:37,359 --> 00:22:39,680 Speaker 1: in each one of those games. So the ability to 388 00:22:39,960 --> 00:22:42,679 Speaker 1: really reach that much of the United States helps drive 389 00:22:43,000 --> 00:22:45,880 Speaker 1: brand awareness. It helps us become a household brand name, 390 00:22:46,200 --> 00:22:49,359 Speaker 1: which then drives greater efficiency of all of our promotions 391 00:22:49,359 --> 00:22:52,200 Speaker 1: and marketing. And that's why we saw such an acceleration 392 00:22:52,240 --> 00:22:54,720 Speaker 1: in our member growth um that we saw on the 393 00:22:54,800 --> 00:22:57,280 Speaker 1: quarter to a record of over five or thousand, and 394 00:22:57,359 --> 00:23:00,200 Speaker 1: an acceleration in the number of new products added at 395 00:23:00,200 --> 00:23:06,080 Speaker 1: over increase books in her thousand so far Ceo Anthony Noo. There. 396 00:23:06,080 --> 00:23:08,320 Speaker 1: You can catch the full interview at Bloomberg dot com. 397 00:23:08,359 --> 00:23:11,200 Speaker 1: Coming up, Crypto and Sanctions, We're going to dig deeper 398 00:23:11,200 --> 00:23:14,680 Speaker 1: into how borderless crypto exchanges around the world are complying 399 00:23:15,200 --> 00:23:18,200 Speaker 1: or not with international laws and regulation as it pertains 400 00:23:18,240 --> 00:23:21,960 Speaker 1: directly to Russian users. That is next. This is Bloomberg 401 00:23:26,800 --> 00:23:30,679 Speaker 1: Finance photo sanctions rules very strictly. Whoever it's on the 402 00:23:30,720 --> 00:23:33,040 Speaker 1: sanctional list, they won't be able to use our platform. 403 00:23:33,080 --> 00:23:37,359 Speaker 1: Whoever not they can so. UM. We work very closely 404 00:23:37,400 --> 00:23:43,600 Speaker 1: with international government regulators very closely to apply sanctions. So, 405 00:23:44,200 --> 00:23:46,159 Speaker 1: but we view that we do not have, you know, 406 00:23:46,240 --> 00:23:51,280 Speaker 1: lateral decision power on our own to freeze normal people's accounts. UM. 407 00:23:51,320 --> 00:23:54,119 Speaker 1: I think that would be UM, that's an ethical for 408 00:23:54,200 --> 00:23:58,760 Speaker 1: us to do. Finance CEO Chanknjao. They're commenting on new 409 00:23:58,800 --> 00:24:00,679 Speaker 1: sanctions I want to dig into is for our Crypto 410 00:24:00,720 --> 00:24:04,919 Speaker 1: report with our crypto contributor Shenali Bostic. Shenale very significant, 411 00:24:05,000 --> 00:24:06,800 Speaker 1: especially in the context of what the d o J 412 00:24:07,240 --> 00:24:11,560 Speaker 1: announced today, this new task force to track the money 413 00:24:11,680 --> 00:24:16,240 Speaker 1: the assets of Russian oligarchs, including crypto. What are you 414 00:24:16,320 --> 00:24:20,840 Speaker 1: making of how these crypto exchanges are interpreting what laws 415 00:24:20,880 --> 00:24:22,960 Speaker 1: they have to comply with. Yeah, and it's interesting. In 416 00:24:23,000 --> 00:24:26,080 Speaker 1: addition to the Department of Justice, you have Democratic senators 417 00:24:26,119 --> 00:24:28,359 Speaker 1: also asking the U S. Treasury Department to keep a 418 00:24:28,400 --> 00:24:32,119 Speaker 1: close eye on crypto and sanctions across the world. But 419 00:24:32,160 --> 00:24:35,320 Speaker 1: if you look at some of the biggest exchanges, finance 420 00:24:35,400 --> 00:24:37,720 Speaker 1: that they comply with sanctions rules. If you take a 421 00:24:37,720 --> 00:24:39,600 Speaker 1: look at coin Base, which is based in the US, 422 00:24:39,720 --> 00:24:43,560 Speaker 1: also says that they comply with sanctions rules. So does 423 00:24:43,600 --> 00:24:45,919 Speaker 1: f t X. But here's the problem at hand, Emily. 424 00:24:46,280 --> 00:24:50,240 Speaker 1: You have many exchanges across the world where cryptos border lists. 425 00:24:50,240 --> 00:24:52,920 Speaker 1: So the question is are there exchanges out there that 426 00:24:53,080 --> 00:24:56,520 Speaker 1: don't imply with the US and international sanctions and to 427 00:24:56,640 --> 00:24:59,919 Speaker 1: what extent our regulators U s E Regulators able to 428 00:25:00,000 --> 00:25:04,040 Speaker 1: get a hold on those exchanges. In addition to recognizing 429 00:25:04,080 --> 00:25:06,520 Speaker 1: that some of these exchanges may not have the k 430 00:25:06,800 --> 00:25:10,800 Speaker 1: y C capabilities that's know your customer capabilities and expertise 431 00:25:11,080 --> 00:25:13,680 Speaker 1: to really track what's going on among their client base. 432 00:25:14,480 --> 00:25:17,480 Speaker 1: I did ask US Deputy Attorney General Lisa Monaco about 433 00:25:17,520 --> 00:25:22,960 Speaker 1: this earlier. How cryptocurrency exchanges are working with the administration 434 00:25:23,320 --> 00:25:26,840 Speaker 1: and the Department of Justice to not just uh, you know, 435 00:25:27,160 --> 00:25:30,120 Speaker 1: get these you know, luxury yachts and jets and apartments, 436 00:25:30,160 --> 00:25:32,960 Speaker 1: but also track down cryptocurrency. Take a quick listen to 437 00:25:33,040 --> 00:25:37,560 Speaker 1: what she had to say, we need the cooperation and 438 00:25:38,480 --> 00:25:44,639 Speaker 1: of right thinking and well behaved cryptocurrency exchanges and other businesses. 439 00:25:44,760 --> 00:25:47,840 Speaker 1: That has to continue to happen. And if it doesn't, 440 00:25:48,359 --> 00:25:50,280 Speaker 1: people are going to find themselves. Business are going to 441 00:25:50,359 --> 00:25:54,520 Speaker 1: find themselves in our crosshairs. Chinalie, all these exchanges in 442 00:25:54,520 --> 00:25:57,000 Speaker 1: a difficult position. I mean, how easy is it to 443 00:25:57,119 --> 00:26:02,920 Speaker 1: tell if your users are Russian Russian oligarchs or not. Yeah, 444 00:26:02,960 --> 00:26:05,960 Speaker 1: that's an interesting question here because besides the multitude of 445 00:26:06,000 --> 00:26:08,600 Speaker 1: exchanges and the chains of transfers that you can see 446 00:26:08,640 --> 00:26:12,800 Speaker 1: across those exchanges, there's also the pure instance in which 447 00:26:12,800 --> 00:26:16,760 Speaker 1: you may have a sanctioned individual who theoretically sets up 448 00:26:16,800 --> 00:26:20,200 Speaker 1: an entity somewhere else, puts it in somebody else's name, 449 00:26:20,359 --> 00:26:24,680 Speaker 1: puts it in another country, and then makes transactions that way. 450 00:26:24,760 --> 00:26:27,960 Speaker 1: So really tracking here the end user is going to 451 00:26:27,960 --> 00:26:32,240 Speaker 1: be what's difficult across those multitude of exchanges with the 452 00:26:32,280 --> 00:26:34,520 Speaker 1: staff that they are bringing on. Right, we know that 453 00:26:34,560 --> 00:26:37,560 Speaker 1: many of these exchanges are really recently bringing on staff 454 00:26:37,600 --> 00:26:39,960 Speaker 1: at a greater degree, but do they have the tools 455 00:26:39,960 --> 00:26:42,280 Speaker 1: they need to really track with the end users are 456 00:26:42,280 --> 00:26:44,240 Speaker 1: At the end of the day. Meantime, I want to 457 00:26:44,240 --> 00:26:46,520 Speaker 1: get your thoughts on another story that's developing. The SEC 458 00:26:46,720 --> 00:26:51,080 Speaker 1: now scrutinizing n f T s over illegal crypto illegal 459 00:26:51,119 --> 00:26:54,240 Speaker 1: crypto token offerings. What do we know about this? Something 460 00:26:54,280 --> 00:26:57,840 Speaker 1: that's so interesting about this is that projects that are 461 00:26:57,880 --> 00:27:01,160 Speaker 1: raising money through n f T s or are other means. Frankly, 462 00:27:01,280 --> 00:27:03,159 Speaker 1: you this is really the SEC trying to take a 463 00:27:03,160 --> 00:27:08,960 Speaker 1: look at what projects really replicate traditional securities offerings. We've 464 00:27:09,000 --> 00:27:12,080 Speaker 1: seen so many renditions of this. But the reason interesting 465 00:27:12,160 --> 00:27:15,240 Speaker 1: this is so interesting, Emily is because not only is 466 00:27:15,400 --> 00:27:18,280 Speaker 1: SEC really trying to liken what's happening in the n 467 00:27:18,320 --> 00:27:20,399 Speaker 1: f T market to the I p O market, you 468 00:27:20,480 --> 00:27:22,320 Speaker 1: also have seen this being a market where there have 469 00:27:22,400 --> 00:27:23,920 Speaker 1: been a lot of rug poles at the end of 470 00:27:23,960 --> 00:27:27,080 Speaker 1: the day and investors getting duped. So two things really 471 00:27:27,119 --> 00:27:30,240 Speaker 1: going on here at the same time. Alright, Shannoli boss, 472 00:27:30,480 --> 00:27:42,080 Speaker 1: thank you for your reporting on this. More than one 473 00:27:42,119 --> 00:27:44,720 Speaker 1: billion people around the world visit TikTok every month, and 474 00:27:44,760 --> 00:27:50,000 Speaker 1: that immense growth has the company facing searing scrutiny. TikTok 475 00:27:50,040 --> 00:27:52,600 Speaker 1: ceo show to Chew talked about managing US and Chinese 476 00:27:52,640 --> 00:27:55,160 Speaker 1: regulators on the latest episode of The David Rubinstein Show. 477 00:27:55,440 --> 00:27:57,960 Speaker 1: Peer to peer conversations in an interview recorded back on 478 00:27:58,040 --> 00:28:04,760 Speaker 1: February seventeen, Take a listen. I will approach to all 479 00:28:04,800 --> 00:28:07,600 Speaker 1: the governments that regulators around the world is to be 480 00:28:07,960 --> 00:28:12,560 Speaker 1: collaborative and to be very transparent, to be available to 481 00:28:12,720 --> 00:28:15,479 Speaker 1: explain what we do and who we are and answer 482 00:28:15,520 --> 00:28:18,159 Speaker 1: any questions that they have. That's the approach we have 483 00:28:18,240 --> 00:28:22,280 Speaker 1: taken in that approach has been an approach that has 484 00:28:22,320 --> 00:28:25,159 Speaker 1: been very beneficial for us over the course of the 485 00:28:25,200 --> 00:28:29,960 Speaker 1: last few years. You can watch more of that interview 486 00:28:29,960 --> 00:28:32,880 Speaker 1: with the CEO of TikTok Show to Chew, David Rubinstein 487 00:28:33,000 --> 00:28:35,640 Speaker 1: Peer to Peer Conversations tonight nine pm in New York 488 00:28:35,920 --> 00:28:40,520 Speaker 1: on Bloomberg Television. Meantime, Forward will separate it's fast growing 489 00:28:40,600 --> 00:28:44,000 Speaker 1: e V operations from its legacy combustion engine business in 490 00:28:44,000 --> 00:28:48,280 Speaker 1: a historic reorganization. Are Ludlow spoke with Ford CEO Jim 491 00:28:48,280 --> 00:28:52,400 Speaker 1: Farley about that. Take a listen. The most important things 492 00:28:52,440 --> 00:28:56,960 Speaker 1: are core ice automotive business. It's very profitable. We made 493 00:28:56,960 --> 00:28:59,800 Speaker 1: over ten billion dollars last year, but it needs to 494 00:28:59,840 --> 00:29:02,320 Speaker 1: be a lot more profitable. We think we're gonna have 495 00:29:02,360 --> 00:29:04,720 Speaker 1: to take about three billion dollars out of our structure 496 00:29:04,760 --> 00:29:07,960 Speaker 1: costs to make that business come fully competitive on a 497 00:29:08,000 --> 00:29:11,120 Speaker 1: return basis. Some of that would be quality, a lot 498 00:29:11,160 --> 00:29:13,800 Speaker 1: of it will be just waste in the system, and 499 00:29:13,920 --> 00:29:16,920 Speaker 1: we we can't stop there. We have to grow too, 500 00:29:17,120 --> 00:29:20,880 Speaker 1: and that's why we're committing to two million vehicles on 501 00:29:20,920 --> 00:29:23,959 Speaker 1: the on the battery electric side. The last thing is 502 00:29:24,200 --> 00:29:26,760 Speaker 1: we have to get our bill material down for our evs. 503 00:29:27,200 --> 00:29:29,760 Speaker 1: We already got about two thousand dollars out of the marquee. 504 00:29:30,120 --> 00:29:32,200 Speaker 1: We've just been working on it for about eight weeks. 505 00:29:32,400 --> 00:29:34,600 Speaker 1: There's a lot of opportunity to continue to get the 506 00:29:34,600 --> 00:29:37,400 Speaker 1: bill of material costs down for evs and that's going 507 00:29:37,440 --> 00:29:40,400 Speaker 1: to help contribute to that more profitable business and we 508 00:29:40,440 --> 00:29:43,920 Speaker 1: could use that profits and cash flow to reinvest in growth. 509 00:29:45,040 --> 00:29:47,400 Speaker 1: Do you have an opportunity to get smart with this right? 510 00:29:47,480 --> 00:29:50,880 Speaker 1: Could we see a spinoff of say the battery business, 511 00:29:51,000 --> 00:29:53,680 Speaker 1: or a spinoff of the autonomous vehicle business, or even 512 00:29:53,720 --> 00:29:56,120 Speaker 1: debt markets with green bonds? What kind of tools are 513 00:29:56,160 --> 00:30:01,200 Speaker 1: at your disposal now? Well, look, we did one of 514 00:30:01,200 --> 00:30:03,880 Speaker 1: the first green bonds in our industry. It went really well. 515 00:30:03,920 --> 00:30:08,400 Speaker 1: Why because we tied it to actual green energy vehicle 516 00:30:08,520 --> 00:30:12,239 Speaker 1: zero mission investments in our plants and the vehicles and 517 00:30:12,360 --> 00:30:16,000 Speaker 1: boarded the market respond we really like that direction, probably 518 00:30:16,000 --> 00:30:20,520 Speaker 1: go deeper, Ford CEO Jim Farley there you can check 519 00:30:20,520 --> 00:30:22,560 Speaker 1: more of that interview at Boomberg dot com. I want 520 00:30:22,560 --> 00:30:24,840 Speaker 1: to bring in our Ed Ludlow who conducted that interview, 521 00:30:24,840 --> 00:30:26,560 Speaker 1: and of course Ed you broke that story a couple 522 00:30:26,560 --> 00:30:29,320 Speaker 1: of weeks ago that Ford was considering this and at 523 00:30:29,360 --> 00:30:32,320 Speaker 1: the time they denied it. What did Jim Farley have 524 00:30:32,400 --> 00:30:35,800 Speaker 1: to say about that? Yeah, Look, Ford is going to 525 00:30:36,080 --> 00:30:38,240 Speaker 1: do what it can right, which is it has to 526 00:30:38,280 --> 00:30:42,920 Speaker 1: manage the existing legacy combustion engine business business ring profit 527 00:30:42,960 --> 00:30:45,000 Speaker 1: out of it and use that money to fund e 528 00:30:45,080 --> 00:30:48,040 Speaker 1: V growth. They want to be Tesla, but Tesla didn't 529 00:30:48,080 --> 00:30:50,640 Speaker 1: have a legacy gas engine business to go off. You're 530 00:30:50,680 --> 00:30:54,440 Speaker 1: completely right end that they, according to Blueveg sources, did 531 00:30:54,480 --> 00:30:58,240 Speaker 1: consider a spinoff, and Farley explained on the news conference 532 00:30:58,440 --> 00:31:01,840 Speaker 1: earlier on Wednesday morning that they looked at it carefully, 533 00:31:01,920 --> 00:31:04,120 Speaker 1: that's his quote, but in the end they decided that 534 00:31:04,160 --> 00:31:06,200 Speaker 1: they didn't go for it because they wanted the two 535 00:31:06,200 --> 00:31:09,320 Speaker 1: individual businesses to be able to share their strengths, have 536 00:31:09,400 --> 00:31:14,400 Speaker 1: like a symbiotic relationship. Meantime, Forward is one of the 537 00:31:14,400 --> 00:31:17,560 Speaker 1: biggest companies we're seeing self shanctioning in Russia. What did 538 00:31:17,560 --> 00:31:21,040 Speaker 1: he have to say about their decision there, how long 539 00:31:21,600 --> 00:31:25,520 Speaker 1: that will stand? Yeah, look, he he was very sympathetic 540 00:31:25,520 --> 00:31:27,600 Speaker 1: with the Ukrainian people. He talked to me about some 541 00:31:27,640 --> 00:31:30,720 Speaker 1: of the Ukrainian employees that Ford has outside of their 542 00:31:30,760 --> 00:31:35,080 Speaker 1: building demonstrating sharing their thoughts. So, you know, he just 543 00:31:35,160 --> 00:31:38,360 Speaker 1: reiterated the action, which is that Ford has paused operations 544 00:31:38,440 --> 00:31:41,400 Speaker 1: in Russia. But being honest, those were scaled back anyway, 545 00:31:41,440 --> 00:31:43,720 Speaker 1: and Ford's been pulling out that market since two thousands 546 00:31:43,720 --> 00:31:47,560 Speaker 1: of seventeen. The other impact is supply chain. Ford got 547 00:31:47,600 --> 00:31:51,360 Speaker 1: hit in one by rising input costs around commodities. That's 548 00:31:51,360 --> 00:31:53,320 Speaker 1: not getting any better with this situation, right, you look 549 00:31:53,360 --> 00:31:56,080 Speaker 1: at oil, you look at industrial metals, and Farley did 550 00:31:56,080 --> 00:31:58,320 Speaker 1: say they'll continue to feel that pain at least in 551 00:31:58,360 --> 00:32:02,080 Speaker 1: the short term from supply chain disruption well and facing 552 00:32:02,080 --> 00:32:05,520 Speaker 1: all of these challenges, Ford is to put it lightly 553 00:32:05,720 --> 00:32:08,680 Speaker 1: far far behind Tesla when it comes to evis what's 554 00:32:08,720 --> 00:32:11,280 Speaker 1: the assessment on whether they really can become a world 555 00:32:11,320 --> 00:32:14,480 Speaker 1: changing company yet again? Yeah, yeah, Look, Farley seems to 556 00:32:14,480 --> 00:32:17,200 Speaker 1: believe in this plan take profit from the pickup trucks 557 00:32:17,240 --> 00:32:19,200 Speaker 1: and put it into the future of evs. But remember 558 00:32:19,440 --> 00:32:21,120 Speaker 1: the other part of the news was they up their 559 00:32:21,160 --> 00:32:24,240 Speaker 1: commitment for EV investment to fifty billion from thirty billion, 560 00:32:24,600 --> 00:32:26,920 Speaker 1: and that they want to do two million evs annually 561 00:32:27,080 --> 00:32:30,440 Speaker 1: by six That is a rapid acceleration of their plans, 562 00:32:30,600 --> 00:32:33,520 Speaker 1: a bigger commitment, and and it is a greater proportion 563 00:32:33,560 --> 00:32:36,160 Speaker 1: of their overall cause. So he could he admitted to me, 564 00:32:36,200 --> 00:32:38,640 Speaker 1: this is going to be really hard they have to execute. 565 00:32:38,880 --> 00:32:41,200 Speaker 1: But they have to do this not just to beat Tesla, 566 00:32:41,520 --> 00:32:44,960 Speaker 1: but to beat their Detroit crosstown rivals like General Motors. 567 00:32:46,880 --> 00:32:50,840 Speaker 1: All right, Ed Ludlow. Excellent reporting by you, excellent interview 568 00:32:50,880 --> 00:32:53,000 Speaker 1: with Jim Farley, and of course you can check out 569 00:32:53,120 --> 00:32:55,800 Speaker 1: at Bloomberg dot com that full interview. That does it. 570 00:32:55,840 --> 00:32:58,440 Speaker 1: For this edition of Bloomberg Technology, we're gonna be joined 571 00:32:58,440 --> 00:33:00,720 Speaker 1: by Migma, president of grab To to talk about the 572 00:33:00,760 --> 00:33:03,600 Speaker 1: company's latest earning report. Will have much more on the 573 00:33:03,640 --> 00:33:08,000 Speaker 1: development in Ukraine, the impact on the technology and developer 574 00:33:08,040 --> 00:33:11,080 Speaker 1: community there. That's coming up tomorrow right here on Bloomberg 575 00:33:11,120 --> 00:33:13,840 Speaker 1: Technology and em Wichang. This is Bloomberg