WEBVTT - OpenAI's Restructuring, Micron Shares Surging

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<v Speaker 1>We're from Marhart where Innovation, Money and power Collie in

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<v Speaker 1>Silicon Vallet NBN. This is Bloomberg Technology with Caroline Hyde

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<v Speaker 1>and Ed Lodlove.

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<v Speaker 2>Live from San Francisco. This is Bloomberg Technology. Open AI

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<v Speaker 2>mols are restructuring and giving Sam Altman a seven percent

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<v Speaker 2>equity stake in the company. Micron shares see their biggest

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<v Speaker 2>one day gain since twenty eleven on the back of earnings.

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<v Speaker 3>And we look at Meta's.

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<v Speaker 2>Augmented reality strategy with an exclusive interview with the company's CTO.

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<v Speaker 2>And this is what financial markets look like in the

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<v Speaker 2>context of technology after a really bright start and as

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<v Speaker 2>that one hundred is now completely flat.

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<v Speaker 3>There had been.

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<v Speaker 2>Enthusiasm for technology shares because of strong economic data, so

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<v Speaker 2>the idea that central banks around the world will start

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<v Speaker 2>cutting rates and also a kind of reinforced pledge from

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<v Speaker 2>China for a stimulus package. It's in the semiconductor space

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<v Speaker 2>where there's all the action. You look at Micron. This

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<v Speaker 2>is an earning story where it's forecast for the current

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<v Speaker 2>period is about strength in AI. We are talking high

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<v Speaker 2>bandwidth memory and that strength in Micron, which we will

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<v Speaker 2>discuss in more detail soon, is boosting the Philadelphia Semiconductor

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<v Speaker 2>Index or the socks.

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<v Speaker 3>Let's get to our top story.

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<v Speaker 2>Open Ai is discussing giving CEO Sam Autman a seven

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<v Speaker 2>percent equity stake in the company and restructuring to become a.

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<v Speaker 3>For profit business. This all according to sources.

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<v Speaker 2>This is a major shift that would mark the first

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<v Speaker 2>time Altman is granted ownership in the AI startup, and

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<v Speaker 2>there is a lot more going on behind the scenes.

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<v Speaker 2>Bloom most Rachel Metz joins me. Now, you and I

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<v Speaker 2>reported on this together with Sharen Gafari.

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<v Speaker 3>And Dina Bass.

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<v Speaker 2>Let's start with this idea of open ai adjusting its

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<v Speaker 2>business model.

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<v Speaker 3>What of sources told us.

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<v Speaker 4>They've told us that the company is considering shifting from

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<v Speaker 4>this nonprofit status that it's had for a number of years.

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<v Speaker 4>It has right now and non it is a nonprofit,

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<v Speaker 4>but it also has a very complicated organizational structure, and

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<v Speaker 4>that it may shift its main business to being a

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<v Speaker 4>for profit public benefit core. And also that they are

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<v Speaker 4>considering whether Sam Altman might have a significant stake in it,

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<v Speaker 4>as you mentioned, seven percent, which could translate to a

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<v Speaker 4>huge financial windfall for him, right, Rachel.

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<v Speaker 2>Unsurprisingly, like loads of people have asked me I'm sure

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<v Speaker 2>they've asked you our audience on Bloomberg Technology, like do

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<v Speaker 2>the math. How much does that mean in terms of wealth?

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<v Speaker 2>For Sam Altman, I think it's too early to do

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<v Speaker 2>the math, right. We'll get to it when the round

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<v Speaker 2>is closing those things. Now, this is news. Sam Altman

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<v Speaker 2>has actually been speaking today into in Italy at Tech

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<v Speaker 2>Week Italy, and this is what he said. He was

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<v Speaker 2>basically asked if Mira Murrati, who is the chief techn

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<v Speaker 2>knowledgy officer who announce her resignation twenty four hours ago,

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<v Speaker 2>is leaving because of this restructuring initiative. He said, no,

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<v Speaker 2>I think this is just about people being ready for

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<v Speaker 2>new chapters of their lives and.

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<v Speaker 3>A new generation of leadership.

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<v Speaker 2>Again, you and I have spoken to sources who have

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<v Speaker 2>been telling us about what's going on.

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<v Speaker 3>My understanding is that.

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<v Speaker 2>Marati is still technically there negotiating an exit, and staff

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<v Speaker 2>are a little bit worried.

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<v Speaker 4>Yeah, I mean, I think there's a couple of things happening.

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<v Speaker 4>One is that the company has seen a huge amount

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<v Speaker 4>of organizational leadership shifting since Sam was briefly ousted and

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<v Speaker 4>then came back a CEO late last year. So a

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<v Speaker 4>lot of things have happened in a fairly short period

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<v Speaker 4>of time, especially at the top.

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<v Speaker 1>They have a whole new board.

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<v Speaker 4>Basically, they have a lot of changes at the sea

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<v Speaker 4>level at the company. People go in, people coming, and

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<v Speaker 4>also founders have left. At this point, there's two founders

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<v Speaker 4>still there, Sam Martman being one of them, and a third,

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<v Speaker 4>Greg Brockman, is on leave at least until.

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<v Speaker 1>The end of the year.

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<v Speaker 4>So employees are seeing a lot of changes. But one

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<v Speaker 4>thing that we do know about Murati's exit that CM

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<v Speaker 4>actually said publicly yesterday was that she it sounded like

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<v Speaker 4>it was a surprise to him. He said in a

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<v Speaker 4>post on AX yesterday that Mirror told him she was leaving.

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<v Speaker 4>He said this morning. This was yesterday, the day that

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<v Speaker 4>this happened, So it sounds like it might have been

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<v Speaker 4>a surprise to everyone, including him.

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<v Speaker 2>Okay, Bloomberg's Rachel Metz we continue to report on that story.

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<v Speaker 3>Check out the full report.

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<v Speaker 2>On Bloomberg News and Bloomberg Technology. We have some breaking

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<v Speaker 2>news at the top of this hour. Super micro Computer

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<v Speaker 2>is being probed by the Justice Department following a critical

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<v Speaker 2>report by an activist short selling firm. This is all

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<v Speaker 2>according to a report in the Wall Street Journal, whose

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<v Speaker 2>cite anonymous sources. Bloomberg's Ian King is here with us

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<v Speaker 2>in San Francisco. The stock now down fourteen percent. It

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<v Speaker 2>had been halted. We're reacting to the journal report, But

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<v Speaker 2>what do we know from their reporting?

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<v Speaker 5>Yeah, I mean what they're saying again, it's back to

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<v Speaker 5>this issue that the company has kind of admitted that

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<v Speaker 5>they've sort of been late to file their annual report

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<v Speaker 5>because of counting exactly accounting issues, and that's what is supposedly,

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<v Speaker 5>according to the journals reporting, at the heart of this investigation,

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<v Speaker 5>and that goes back to something that they've also been

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<v Speaker 5>through previously a few years ago, where they had accounting issues.

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<v Speaker 2>I've written to super Micro. They've not yet responded, but

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<v Speaker 2>of course, between us, we will try and get the story.

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<v Speaker 2>The big story today in markets and in semiconductors, Bloomberg's

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<v Speaker 2>Ian King is Micron. This is a really big move,

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<v Speaker 2>and it's a move based on the market's understanding that

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<v Speaker 2>Micron is a winner in the data center build out

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<v Speaker 2>that's happening. Just explain what Micron told us.

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<v Speaker 5>Yeah, I mean, they confirmed everybody's best hopes and said, look, hey,

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<v Speaker 5>the market for this type of memory that goes into

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<v Speaker 5>these AI servers going to be twenty five billion next year.

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<v Speaker 5>That's a great opportunity for us. We're going to do

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<v Speaker 5>well in there. But the flips that and you'll remember

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<v Speaker 5>we spoke about this yesterday was people were worried about

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<v Speaker 5>what's going on in smartphones, people worried about what's going

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<v Speaker 5>on in PC's, and Micron said, hey, no, we think

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<v Speaker 5>it's going to be better than we had previously thought.

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<v Speaker 5>Don't worry about it. So there's a kind of a

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<v Speaker 5>double lift there.

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<v Speaker 2>This has been a fast start to the show, a

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<v Speaker 2>lot of breaking news. Let's take a pause and go

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<v Speaker 2>back to basics. If I walked into a data center

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<v Speaker 2>and I went up to a server rack, and I

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<v Speaker 2>pulled out one of the trays i'd probably find right

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<v Speaker 2>now at the center of it in Nvidia GPU. But

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<v Speaker 2>what I'm trying to help our audience understand is that

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<v Speaker 2>around the outside there would be half a dozen high

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<v Speaker 2>bandwidth memory chips. And right now it seems like those

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<v Speaker 2>high bandwidth memory chips are coming from Micron.

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<v Speaker 5>Yeah, I mean, obviously you're very focused on this topic.

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<v Speaker 5>Saying I'm a nerd, I will you said it now

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<v Speaker 5>the absolutely big models, big data.

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<v Speaker 6>Right.

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<v Speaker 5>If the better they get, better that you give them

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<v Speaker 5>more data. How do you get data fast? You put

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<v Speaker 5>it in memory that's adjacent to those microprocesses. The more memory,

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<v Speaker 5>the higher speed that memory we can talk to them,

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<v Speaker 5>the better they get. Obviously, if you are the company

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<v Speaker 5>that is leading the way in getting that memory development

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<v Speaker 5>out there and getting that memory to these companies, you're

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<v Speaker 5>doing well.

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<v Speaker 2>Bloombergs and King across the breaking news on super micro

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<v Speaker 2>and on Micron, there's actually a lot more happening in

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<v Speaker 2>financial markets. This impacting the technology sector. I want to

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<v Speaker 2>go out to New York and Bloomberg's Isabelle Lee, and

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<v Speaker 2>it was really interesting at the open. I was oky

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<v Speaker 2>at the NASDAK one hundred and like really big gain

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<v Speaker 2>economic data, digesting the path forward for central banks. And

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<v Speaker 2>then we kind of had a whimper with semiconductors still strong.

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<v Speaker 3>What's the story behind that?

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<v Speaker 7>Isabelle Wimber is definitely the right word, because, for instance,

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<v Speaker 7>you see Micron at popped twenty percent, that's the largest

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<v Speaker 7>one day against since twenty eleven. But now it's down

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<v Speaker 7>or it's up still thirteen percent, but it's paired back

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<v Speaker 7>some of those games, even the NASDAC and even the SMP,

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<v Speaker 7>but it's still the name of the game. It's still

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<v Speaker 7>tech because for instance, we have Nvidia, Taiwan Semiconductor and

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<v Speaker 7>AMD all testing. There are two hundred day moving averages.

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<v Speaker 7>So this is a bullish sentiment signal. Have the semiconductor

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<v Speaker 7>ETF of VANK that's is twenty three billion semi coonductor ETF.

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<v Speaker 7>It's hitting its highs in August and we're on track

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<v Speaker 7>for its third straight week of inflows, meaning investors are

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<v Speaker 7>piling money into that. So text still remains to be

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<v Speaker 7>the big scene throughout these whole market rally, but it

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<v Speaker 7>is losing some of its lester because we have the

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<v Speaker 7>equal weighted SMP five hundred catching up. Month to day

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<v Speaker 7>it's up around one point four and sm P five

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<v Speaker 7>hundred and nastak is up around two percent, so you

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<v Speaker 7>see some of those gains there. Even in video it's

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<v Speaker 7>up around Isabelle and this month. But you're today that's one.

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<v Speaker 2>Fifty Pelle New York man Eric Adams is speaking.

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<v Speaker 3>You can shut you want with us, and it.

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<v Speaker 8>Is first of all, I wanna thank you for being

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<v Speaker 8>here this morning, and I wanna thank uh the supporters

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<v Speaker 8>of all ethnic groups that I hear, particularly the men

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<v Speaker 8>and women of the clergy that's here that have joined

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<v Speaker 8>me here today.

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<v Speaker 9>And we are not surprised. We expected this.

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<v Speaker 8>This is not surprising to us at all, the actions

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<v Speaker 8>that have unfolded over the last ten months. Yeah, it's

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<v Speaker 8>the big leaks, the commentary, the demonize it. This did

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<v Speaker 8>not surprise us that we reached this day. And I

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<v Speaker 8>asked New Yorkers to wait to hear our defense before

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<v Speaker 8>making any judgments. In about thirty minutes, you're going to

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<v Speaker 8>hear his story of the case that In about thirty minutes,

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<v Speaker 8>you're going to hear his story of the case that

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<v Speaker 8>is in front of us. The story would come from

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<v Speaker 8>the federal prosecutors, and I ask to wait and hear

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<v Speaker 8>our side to this narrative. From here, my attorneys will

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<v Speaker 8>take care of the case, so I can't take care

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<v Speaker 8>of the city. My day to day will not change.

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<v Speaker 8>I will continue to do the job for eight point

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<v Speaker 8>three million New Yorkers that I was elected to do,

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<v Speaker 8>and the three one hundred thousand plus employees of our

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<v Speaker 8>city government will continue to do their jobs because this

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<v Speaker 8>is what we do as New Yorkers. It's an insult

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<v Speaker 8>to the hardrooking, pity people of the city that anyone

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<v Speaker 8>would say that they won't do their jobs while this

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<v Speaker 8>case proceeds in the background. They are dedicated public servant

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<v Speaker 8>and I have been one of them for many years,

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<v Speaker 8>and they're going to continue to do their job moving

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<v Speaker 8>the city forward every day. All right, man, it's an

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<v Speaker 8>unfortunate day, and it's a painful day. But inside of

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<v Speaker 8>all of that, it's today where we will finally reveal

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<v Speaker 8>why for ten months I have gone through this and

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<v Speaker 8>I look forward to defending myself and defending the people

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<v Speaker 8>of this city, as I've done throughout my entire professional career.

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<v Speaker 8>I want to now turn it over to the person

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<v Speaker 8>who started me on this journey, Covid Daughtry.

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<v Speaker 9>Thank you, mister Mayor.

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<v Speaker 10>You are Mayor.

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<v Speaker 2>There was New York City Mayor Eric Adams speaking after

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<v Speaker 2>being indicted on bribery and fraud charges. What he had

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<v Speaker 2>to say that while the legal process and the cases ongoing,

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<v Speaker 2>his day to day will not change. He talked about

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<v Speaker 2>how in the spirit of being in New Yorker, the

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<v Speaker 2>function of government, the function of administration of the city

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<v Speaker 2>will continue.

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<v Speaker 3>He will serve as mayor of.

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<v Speaker 2>New York City, but also stated that he looks forward

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<v Speaker 2>to defending himself against the charges being brought against him,

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<v Speaker 2>the allegations of the indictment that are being brought against him.

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<v Speaker 3>He is speaking at an event.

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<v Speaker 2>Let's Get Out Now, to Bloomberg's David Gurra, who is

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<v Speaker 2>out in New York and has been following not just

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<v Speaker 2>the legal action but the response of the mayor.

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<v Speaker 11>David, Yeah, I was struck by the tone from the

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<v Speaker 11>mayor there, kind of mirroring what we heard from him

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<v Speaker 11>last night when he released a short video statement from

0:13:15.200 --> 0:13:17.760
<v Speaker 11>Gracie Mansion where he lives here in New York City,

0:13:18.480 --> 0:13:21.160
<v Speaker 11>kind of decrying those charges first and foremost, but also

0:13:21.240 --> 0:13:24.120
<v Speaker 11>vowing to fight them and really emphasizing it the fact

0:13:24.160 --> 0:13:26.520
<v Speaker 11>that he thinks he's going to be able to do this,

0:13:26.640 --> 0:13:29.040
<v Speaker 11>fight these charges as he continues as mayor of this city.

0:13:29.080 --> 0:13:31.320
<v Speaker 11>There are a lot of skeptics, as he acknowledged in

0:13:31.320 --> 0:13:32.960
<v Speaker 11>that statement and what we just heard from the Mayor

0:13:33.480 --> 0:13:36.280
<v Speaker 11>this morning, who think that he isn't able to do that,

0:13:36.280 --> 0:13:37.400
<v Speaker 11>shouldn't be able to do that.

0:13:37.880 --> 0:13:38.840
<v Speaker 9>He's adamant that.

0:13:39.040 --> 0:13:42.480
<v Speaker 11>Interestingly, he says he's been he's been fighting allegations like

0:13:42.520 --> 0:13:44.760
<v Speaker 11>this or the spectru of these allegations for many months.

0:13:44.800 --> 0:13:47.840
<v Speaker 11>He should be able to keep doing it going forward.

0:13:48.160 --> 0:13:50.400
<v Speaker 2>Mayor Adams has resumed speaking, let's go back to.

0:13:50.360 --> 0:13:55.360
<v Speaker 8>It good money.

0:13:57.320 --> 0:13:58.800
<v Speaker 3>My name is Hazel Dukes.

0:14:00.080 --> 0:14:00.960
<v Speaker 9>I live in Harlem.

0:14:01.120 --> 0:14:01.400
<v Speaker 3>David.

0:14:01.440 --> 0:14:03.800
<v Speaker 2>An issue of timing there for which I apologize, So

0:14:03.880 --> 0:14:05.400
<v Speaker 2>you are saying please continue.

0:14:05.640 --> 0:14:05.880
<v Speaker 1>Yeah.

0:14:05.920 --> 0:14:07.040
<v Speaker 11>So I think that what we're going to be having

0:14:07.120 --> 0:14:09.480
<v Speaker 11>to focus on here in the hours to come is

0:14:09.960 --> 0:14:12.080
<v Speaker 11>what the response is from the Democratic Party to what

0:14:12.120 --> 0:14:13.959
<v Speaker 11>the mayor is saying. So we have heard from some

0:14:14.400 --> 0:14:16.640
<v Speaker 11>officials he is going to be in a primary in

0:14:16.679 --> 0:14:18.679
<v Speaker 11>the next few months if he runs for office once

0:14:18.720 --> 0:14:21.480
<v Speaker 11>again against the current comptroller and the previous Commontroller.

0:14:21.560 --> 0:14:23.520
<v Speaker 1>Both of them have called upon him to resign.

0:14:23.600 --> 0:14:26.600
<v Speaker 11>So there is a small and growing chorus of Democratic

0:14:26.640 --> 0:14:28.920
<v Speaker 11>officials here in New York who are saying he shouldn't

0:14:28.920 --> 0:14:31.920
<v Speaker 11>continue to do the job. We haven't heard from mckeim, Jefferies,

0:14:31.960 --> 0:14:34.720
<v Speaker 11>the ranking member in the House of Brooklyn Night, like

0:14:34.760 --> 0:14:37.480
<v Speaker 11>the mayor himself, somebody he's known for a very long time.

0:14:37.880 --> 0:14:40.200
<v Speaker 11>If we start to see erosion and support from some

0:14:40.200 --> 0:14:41.680
<v Speaker 11>of these kind of longtime.

0:14:41.200 --> 0:14:42.640
<v Speaker 1>Officials in the Democratic Party.

0:14:42.880 --> 0:14:44.840
<v Speaker 11>Yes, in New York, but more broadly, I think that's

0:14:44.880 --> 0:14:47.520
<v Speaker 11>going to be pretty significant. And then it's a quirk

0:14:47.760 --> 0:14:50.880
<v Speaker 11>of New York City and the way that this city

0:14:50.920 --> 0:14:52.560
<v Speaker 11>is governed, in the state is governed that the governor

0:14:52.560 --> 0:14:55.000
<v Speaker 11>of this state, Kathy Hopel, does have the power to

0:14:55.040 --> 0:14:58.160
<v Speaker 11>suspend the mayor and remove the mayor. Now, nobody's having

0:14:58.160 --> 0:15:00.720
<v Speaker 11>a serious conversation about that right now. However, we'll see

0:15:00.840 --> 0:15:02.800
<v Speaker 11>sort of as this unfolds, if it's something that gets

0:15:02.840 --> 0:15:05.000
<v Speaker 11>talked about more man certainly, this is something that the

0:15:05.000 --> 0:15:06.800
<v Speaker 11>governor of the state could be able to do if

0:15:06.800 --> 0:15:07.440
<v Speaker 11>she's so wanted.

0:15:08.680 --> 0:15:11.360
<v Speaker 2>Bloomberg's David Gura in New York tracking the story, and

0:15:11.360 --> 0:15:14.520
<v Speaker 2>we will continue to track the situations. We will be

0:15:14.640 --> 0:15:18.640
<v Speaker 2>right back. This is Bloomberg Technology.

0:15:26.760 --> 0:15:28.040
<v Speaker 3>If you're just joining us.

0:15:28.120 --> 0:15:31.600
<v Speaker 2>New York Mayor Eric Adams has been speaking after being

0:15:32.000 --> 0:15:35.680
<v Speaker 2>indicted on bribery and fraud charges. What he said is

0:15:35.720 --> 0:15:39.160
<v Speaker 2>that he will defend himself against those charges, that in

0:15:39.200 --> 0:15:43.000
<v Speaker 2>the meantime, while the case is ongoing, he will continue

0:15:43.000 --> 0:15:45.560
<v Speaker 2>to perform the duties of mayor, and that the work

0:15:45.600 --> 0:15:49.120
<v Speaker 2>of mayor will continue. A note of interest for our

0:15:49.160 --> 0:15:53.160
<v Speaker 2>audience he has hired Alex Spiro, an attorney that audience

0:15:53.200 --> 0:15:56.720
<v Speaker 2>members of Bloomberg Technology will recognize as somebody who has

0:15:56.720 --> 0:15:59.600
<v Speaker 2>defended Elon Musk in the past. We will continue to

0:15:59.640 --> 0:16:02.480
<v Speaker 2>track the latest from New York as Mayor Adam speaks,

0:16:02.480 --> 0:16:05.280
<v Speaker 2>and we expect more news from the authorities in the

0:16:05.320 --> 0:16:08.640
<v Speaker 2>coming hour. But Mayor Adams saying he will defend himself

0:16:08.680 --> 0:16:12.760
<v Speaker 2>against those indictment charges. Okay, let's go back to technology news.

0:16:12.880 --> 0:16:16.960
<v Speaker 2>Ireland is going to use almost the almost sixteen billion

0:16:17.000 --> 0:16:19.800
<v Speaker 2>dollars Apple was made to pay to it in taxes

0:16:20.160 --> 0:16:23.640
<v Speaker 2>for infrastructure projects. That's according to the nation's Prime minister.

0:16:23.720 --> 0:16:26.600
<v Speaker 2>The sum of money is now settled after a recent

0:16:26.920 --> 0:16:30.720
<v Speaker 2>ruling by EU courts enforcing a twenty sixteen decision that

0:16:30.880 --> 0:16:34.280
<v Speaker 2>Ireland's tax policy for Apple gave it an unfair advantage.

0:16:34.320 --> 0:16:37.560
<v Speaker 2>Irish Prime Minister Simon Harris outlined the plan for the

0:16:37.560 --> 0:16:41.080
<v Speaker 2>cash in an interview with Bloomberg's Maniscranny in New York

0:16:41.120 --> 0:16:41.720
<v Speaker 2>this week.

0:16:42.400 --> 0:16:44.640
<v Speaker 12>I do think it's appropriate in our budget that we

0:16:44.680 --> 0:16:47.480
<v Speaker 12>would provide clarity as to the principles we will apply

0:16:47.560 --> 0:16:50.080
<v Speaker 12>as to how to invest it and let me let

0:16:50.080 --> 0:16:52.400
<v Speaker 12>me assist in suggesting that I think those key areas

0:16:52.440 --> 0:16:56.400
<v Speaker 12>are own water, our water infrastructure, our energy grid and

0:16:56.480 --> 0:16:58.680
<v Speaker 12>housing supply. There are three areas that I think could

0:16:58.840 --> 0:17:01.080
<v Speaker 12>could I suppose really give it a benefits to their

0:17:01.080 --> 0:17:03.440
<v Speaker 12>countries at economic security into the future.

0:17:06.000 --> 0:17:09.720
<v Speaker 2>Ireland relies heavily on foreign direct investment from the US,

0:17:09.760 --> 0:17:13.080
<v Speaker 2>and a big chunk of that comes from big technology companies.

0:17:13.119 --> 0:17:16.480
<v Speaker 2>This week, the country's Minister for Enterprise, Trade and Employment,

0:17:16.480 --> 0:17:19.679
<v Speaker 2>Peter Burke, is meeting with the tech industry and investors

0:17:19.920 --> 0:17:22.399
<v Speaker 2>on a trade mission here to Silicon Valley in the

0:17:22.400 --> 0:17:25.240
<v Speaker 2>Bay Area. Who joins us here in San Francisco, Good

0:17:25.320 --> 0:17:28.840
<v Speaker 2>morning and welcome to Bloomberg Technology Minister Marnie.

0:17:28.680 --> 0:17:29.400
<v Speaker 9>Ed Great to be here.

0:17:29.920 --> 0:17:34.679
<v Speaker 2>What's your colleague and nation's leader said about the Apple

0:17:34.720 --> 0:17:37.520
<v Speaker 2>tax money is it will be used on water, energy

0:17:37.520 --> 0:17:38.720
<v Speaker 2>and housing infrastructure.

0:17:39.200 --> 0:17:40.720
<v Speaker 3>But the relationship with.

0:17:40.680 --> 0:17:44.240
<v Speaker 2>Apple is so key in your meetings here with different

0:17:44.280 --> 0:17:47.920
<v Speaker 2>technology companies. What have the repercussions of that ruling been.

0:17:48.280 --> 0:17:52.919
<v Speaker 2>Has it impacted your ability to negotiate other deals and

0:17:53.000 --> 0:17:56.320
<v Speaker 2>have an ongoing relationship with those companies interested in Ireland.

0:17:56.720 --> 0:17:59.480
<v Speaker 6>Well, first of all, I'd say is that we don't negotiate.

0:17:59.520 --> 0:18:02.639
<v Speaker 6>Deans have a very independent Revenue Commissioner. It hasn't been

0:18:02.680 --> 0:18:04.879
<v Speaker 6>referenced at all. I think really people see it as

0:18:04.920 --> 0:18:07.440
<v Speaker 6>a legacy issue. If we look back over time, these

0:18:07.440 --> 0:18:11.200
<v Speaker 6>are two decisions taken back in the late nineties early

0:18:11.240 --> 0:18:14.120
<v Speaker 6>two thousands in terms of advanced opinions that were issued,

0:18:14.520 --> 0:18:16.320
<v Speaker 6>and if you look at the prism of our modern

0:18:16.359 --> 0:18:19.840
<v Speaker 6>tax legislation, which has changed very significantly over the last

0:18:19.960 --> 0:18:21.840
<v Speaker 6>number of years. We have been a world leader in

0:18:21.880 --> 0:18:25.720
<v Speaker 6>the BETS and OECD process, obviously having that global taxation

0:18:25.800 --> 0:18:29.199
<v Speaker 6>agreement worldwide and we're seeing the moves of Pillar one

0:18:29.240 --> 0:18:31.919
<v Speaker 6>and Pillar two. Europe has been a very earlier adopter

0:18:32.040 --> 0:18:34.879
<v Speaker 6>on that process. So it's really looked at the prism

0:18:35.040 --> 0:18:37.760
<v Speaker 6>of all legacy issues and hasn't been raised at all

0:18:37.800 --> 0:18:39.800
<v Speaker 6>because we're very much to the forefront as a country

0:18:39.960 --> 0:18:42.320
<v Speaker 6>of transparency. We have one of the highest levels of

0:18:42.359 --> 0:18:45.159
<v Speaker 6>exchange agreements throughout the EU. We have a number of

0:18:45.240 --> 0:18:47.920
<v Speaker 6>international tax agreements as well, which is very much to

0:18:47.960 --> 0:18:50.560
<v Speaker 6>the forefront worldwide. So we're a country that can stand

0:18:50.560 --> 0:18:53.640
<v Speaker 6>shoulder to shoulder in terms of transparency and also very

0:18:53.640 --> 0:18:56.320
<v Speaker 6>clearly that we have been a leader in going to

0:18:56.400 --> 0:18:59.240
<v Speaker 6>the new global taxation of OCD process.

0:18:59.160 --> 0:19:01.080
<v Speaker 3>Mister Beck and meet this week.

0:19:01.200 --> 0:19:04.520
<v Speaker 2>I'm sure the election in November, the presidential election has

0:19:04.600 --> 0:19:09.000
<v Speaker 2>come up in either outcome. Do you see any tangible

0:19:09.040 --> 0:19:14.040
<v Speaker 2>impact to the trade and tariff situation as it would

0:19:14.040 --> 0:19:14.920
<v Speaker 2>impact Ireland.

0:19:15.560 --> 0:19:15.800
<v Speaker 9>Don't.

0:19:15.840 --> 0:19:18.399
<v Speaker 6>We've worked with many US presidents over the years and

0:19:18.440 --> 0:19:21.640
<v Speaker 6>we've had a very long standing close relationship. Obviously, ten

0:19:21.680 --> 0:19:24.560
<v Speaker 6>percent of Americans have Irish heritage.

0:19:24.600 --> 0:19:26.360
<v Speaker 9>We have nine diplomatic.

0:19:26.040 --> 0:19:28.600
<v Speaker 6>Missions here in the US, which we've increased our footprints

0:19:28.600 --> 0:19:31.320
<v Speaker 6>significantly over the last number of years, and we'll continue

0:19:31.359 --> 0:19:33.800
<v Speaker 6>to do that because we have very strong cultural ties

0:19:34.359 --> 0:19:37.880
<v Speaker 6>with the United States and obviously share so much heritage,

0:19:37.920 --> 0:19:40.600
<v Speaker 6>and that will continue. Our diplomatic presidence is very strong.

0:19:40.640 --> 0:19:44.400
<v Speaker 6>We're very privileged to have a stand alone engagement every

0:19:44.440 --> 0:19:46.800
<v Speaker 6>single year in Saint Patrick's Day in the White House

0:19:46.800 --> 0:19:49.360
<v Speaker 6>in Washington, and that's also very important.

0:19:49.160 --> 0:19:50.320
<v Speaker 9>That will continue.

0:19:50.440 --> 0:19:53.560
<v Speaker 6>And this year we're celebrating one hundred years of diplomatic

0:19:53.600 --> 0:19:56.080
<v Speaker 6>relations and our t shock will be heading over to

0:19:56.119 --> 0:19:58.520
<v Speaker 6>the White House to meet President Biden on that okase

0:19:58.960 --> 0:20:02.159
<v Speaker 6>and to celebrate, absolutely, to celebrate what's wonderful we've being

0:20:02.200 --> 0:20:05.040
<v Speaker 6>Irish and American and the great history we've had over

0:20:05.040 --> 0:20:06.320
<v Speaker 6>the last number of decades.

0:20:06.440 --> 0:20:09.480
<v Speaker 2>It's a big focus for this program. Bling Bow Technology

0:20:09.720 --> 0:20:12.040
<v Speaker 2>for quite a while now has been data centers, and

0:20:12.080 --> 0:20:14.439
<v Speaker 2>I understand it's been a focus for you as well.

0:20:14.960 --> 0:20:19.520
<v Speaker 2>There's somewhat of a moratorium on data centers, particularly in

0:20:19.600 --> 0:20:25.480
<v Speaker 2>Dublin itself. How is that impacting your ability to attract

0:20:25.560 --> 0:20:30.639
<v Speaker 2>investment bring new data into infrastructure to the country, because

0:20:30.640 --> 0:20:33.359
<v Speaker 2>that is the process that's happening around the world right now.

0:20:33.600 --> 0:20:35.240
<v Speaker 6>So maybe if I just set out the background the

0:20:35.320 --> 0:20:37.960
<v Speaker 6>first Well, there is a moratorium in our country with

0:20:38.040 --> 0:20:41.560
<v Speaker 6>a very clear policy at the moment. We obviously have constraints,

0:20:41.600 --> 0:20:44.760
<v Speaker 6>but going out to twenty thirty, like any country, we

0:20:44.840 --> 0:20:48.160
<v Speaker 6>have a unique advantage now in terms of our energy capacity.

0:20:48.200 --> 0:20:51.639
<v Speaker 6>We have a number of offshore regeneration projects that are

0:20:51.720 --> 0:20:53.960
<v Speaker 6>under where were four contracts signed on the East Course

0:20:54.200 --> 0:20:57.320
<v Speaker 6>that's going to have a capacity of about twenty gigawatts

0:20:57.400 --> 0:20:59.720
<v Speaker 6>up to twenty forty. A lot of that would be

0:20:59.720 --> 0:21:02.640
<v Speaker 6>delivered by twenty thirty. And the sense what we're doing

0:21:02.680 --> 0:21:04.639
<v Speaker 6>now is we're setting out a roadmap to get to

0:21:04.680 --> 0:21:08.040
<v Speaker 6>that point. So our independent regulator, the cru is currently

0:21:08.359 --> 0:21:11.320
<v Speaker 6>going to report in the next number of weeks, which

0:21:11.359 --> 0:21:14.080
<v Speaker 6>will have a very strong policy on large energy users

0:21:14.080 --> 0:21:16.720
<v Speaker 6>and will point the direction towards giving them a roadmap

0:21:16.760 --> 0:21:18.400
<v Speaker 6>of when they will be able to connect to the grid.

0:21:18.520 --> 0:21:20.720
<v Speaker 9>So we're very much open for a business. We do

0:21:20.840 --> 0:21:21.480
<v Speaker 9>know the value that.

0:21:21.560 --> 0:21:24.919
<v Speaker 6>Data centers provide because with very agile economy, a very

0:21:24.960 --> 0:21:27.800
<v Speaker 6>high tech economy, eight out of the top ten global

0:21:27.880 --> 0:21:31.080
<v Speaker 6>leaders call Ireland their home. Obviously, about one hundred and

0:21:31.080 --> 0:21:34.520
<v Speaker 6>seventy five thousand people employed in that sector, one hundred

0:21:34.520 --> 0:21:37.280
<v Speaker 6>and eighty billions of exports, so huge, huge amount of

0:21:37.359 --> 0:21:40.000
<v Speaker 6>value to Dirish economy. And obviously we know that data

0:21:40.000 --> 0:21:43.159
<v Speaker 6>centers are very much key and integral to that process,

0:21:43.200 --> 0:21:45.000
<v Speaker 6>and that's why we're going to have a sustainable policy

0:21:45.200 --> 0:21:48.359
<v Speaker 6>to ensure that those who invest here there are no surprises,

0:21:48.440 --> 0:21:50.320
<v Speaker 6>they know what they will get and we will continue

0:21:50.320 --> 0:21:52.119
<v Speaker 6>to underwrite their development into the future.

0:21:52.200 --> 0:21:55.840
<v Speaker 2>Minister, is there any specific plan to use the Apple

0:21:55.920 --> 0:22:00.159
<v Speaker 2>tax money that is apportion to energy specifically for a

0:22:00.359 --> 0:22:02.920
<v Speaker 2>center support in the context of energy.

0:22:02.880 --> 0:22:05.359
<v Speaker 6>We're looking at a number of ways to really deploy

0:22:05.400 --> 0:22:08.280
<v Speaker 6>that funding. Obviously, firstly, I would say as an economy,

0:22:08.480 --> 0:22:10.800
<v Speaker 6>we've gone from about three and a half billion capital

0:22:10.840 --> 0:22:13.560
<v Speaker 6>investments since twenty seventeen up to fourteen and a half

0:22:13.640 --> 0:22:15.280
<v Speaker 6>billion euro now, so you have to look at the

0:22:15.280 --> 0:22:18.560
<v Speaker 6>capacity of the economy to deliver infrastructure. So we have

0:22:18.640 --> 0:22:20.200
<v Speaker 6>to be careful in that regard and we'll be looking

0:22:20.200 --> 0:22:21.200
<v Speaker 6>at a number of areas.

0:22:21.400 --> 0:22:22.920
<v Speaker 9>Firstly, obviously in terms.

0:22:22.680 --> 0:22:25.520
<v Speaker 6>Of our grid and our energy infrastructure, which is very important.

0:22:25.800 --> 0:22:28.399
<v Speaker 6>We want to keep competitive. We're the most competitive country

0:22:28.400 --> 0:22:32.000
<v Speaker 6>in the Eurozone. We're number four in the Independent Competitive

0:22:32.080 --> 0:22:34.640
<v Speaker 6>Yearbook out of sixty seven countries measured. But we're going

0:22:34.640 --> 0:22:36.479
<v Speaker 6>to put a good bit into our grid and secondly

0:22:36.480 --> 0:22:39.000
<v Speaker 6>our water and wastewater, which is very important to us,

0:22:39.040 --> 0:22:41.760
<v Speaker 6>and keeping up our skills based because as a country,

0:22:41.880 --> 0:22:44.600
<v Speaker 6>we're very clear that our talent is our most prized resource,

0:22:44.640 --> 0:22:47.040
<v Speaker 6>our people and we have the most highly skilled.

0:22:46.840 --> 0:22:49.119
<v Speaker 9>Youngest workforce in the EU.

0:22:49.240 --> 0:22:52.040
<v Speaker 6>We have double the graduates of eight percent and ict

0:22:52.200 --> 0:22:54.600
<v Speaker 6>double the EU average. And also pain down our debt

0:22:54.680 --> 0:22:56.400
<v Speaker 6>and you know, looking at sovereign wealth funds.

0:22:56.440 --> 0:22:58.040
<v Speaker 9>We have two particular funds.

0:22:57.920 --> 0:23:00.880
<v Speaker 6>That we will invest significantly into which will underwright Ireland's

0:23:00.920 --> 0:23:03.040
<v Speaker 6>future to grow, which is very important to us.

0:23:03.040 --> 0:23:05.560
<v Speaker 2>Minister, we started this conversation saying you're on a trade

0:23:05.560 --> 0:23:08.160
<v Speaker 2>mission so let's end it by asking how that's gone.

0:23:08.200 --> 0:23:10.600
<v Speaker 2>Have you been able to attract any new investment this week?

0:23:10.640 --> 0:23:11.600
<v Speaker 9>It's been very exciting.

0:23:11.600 --> 0:23:14.160
<v Speaker 6>I've met so many companies, particularly in the Bay Area

0:23:14.160 --> 0:23:16.199
<v Speaker 6>here who are at the very cutting edge of technology.

0:23:16.520 --> 0:23:19.639
<v Speaker 6>We have a new implementation document with the Bay Area

0:23:19.680 --> 0:23:23.119
<v Speaker 6>Council with John Randall Randolph and his team, we've put together,

0:23:23.359 --> 0:23:26.240
<v Speaker 6>you know, tertiary partnerships with their higher education with Stanford

0:23:26.280 --> 0:23:28.960
<v Speaker 6>and Trinity College and UCC in Cork. A lot of

0:23:29.000 --> 0:23:31.040
<v Speaker 6>good work is being carried out to grow that relationship

0:23:31.080 --> 0:23:34.320
<v Speaker 6>with about one hundred and sixty companies employing twenty five

0:23:34.359 --> 0:23:37.320
<v Speaker 6>thousand people in operation where the seven largest investor Ireland

0:23:37.320 --> 0:23:39.680
<v Speaker 6>are here, so it's very much a mutual by latter

0:23:39.800 --> 0:23:42.680
<v Speaker 6>relationship as well as those who are employing so many

0:23:42.680 --> 0:23:45.400
<v Speaker 6>people back home in Ireland. So I've met very exciting companies,

0:23:45.640 --> 0:23:49.000
<v Speaker 6>really look forward to attracting new investment, but also critically

0:23:49.200 --> 0:23:52.640
<v Speaker 6>Ireland investing more in this area as well because Enterprise

0:23:52.640 --> 0:23:54.800
<v Speaker 6>Ireland one of our key state agencies, along with the

0:23:54.800 --> 0:23:58.080
<v Speaker 6>ideas investing heavily in this sector through so many exciting

0:23:58.080 --> 0:23:59.840
<v Speaker 6>companies with an Irish background.

0:24:00.320 --> 0:24:03.680
<v Speaker 2>Ireland's Enterprise and Trade Minister Peter Burg, thank you very much.

0:24:03.760 --> 0:24:17.359
<v Speaker 2>We will be right back. This is Bloomberg Technology. Welcome

0:24:17.400 --> 0:24:20.920
<v Speaker 2>back to Bloomberg Technology, Ed Lovelow here in San Francisco.

0:24:21.040 --> 0:24:23.320
<v Speaker 2>If you're seeing it for the first time. Financial markets

0:24:23.320 --> 0:24:26.000
<v Speaker 2>have kind of changed direction in the last thirty minutes.

0:24:26.040 --> 0:24:29.520
<v Speaker 2>We saw really significant early gains after the market open,

0:24:29.560 --> 0:24:31.919
<v Speaker 2>particularly in tech. Then as that one hundred is now

0:24:31.960 --> 0:24:34.399
<v Speaker 2>up modestly three ten to one percent. But where there

0:24:34.480 --> 0:24:38.399
<v Speaker 2>is continued strength is in semiconductors. The socks, yes, but

0:24:38.480 --> 0:24:41.520
<v Speaker 2>the main story there is Micron, a memory chip maker,

0:24:41.920 --> 0:24:45.000
<v Speaker 2>and for all the data center investment that's happening, what

0:24:45.040 --> 0:24:47.560
<v Speaker 2>we're now learning is that for the memory chip makers

0:24:47.600 --> 0:24:50.960
<v Speaker 2>it's happening too. Yes, you're getting GPUs and money spent

0:24:51.000 --> 0:24:53.679
<v Speaker 2>on Nvidia, but now Micron is seeing a benefit and

0:24:53.720 --> 0:24:56.520
<v Speaker 2>that was reflected in the forecast for the current period

0:24:56.560 --> 0:24:59.280
<v Speaker 2>where they're seeing sales I think eight point seven billion dollars.

0:24:59.400 --> 0:25:01.760
<v Speaker 2>The street was looking for around eight point three. We'll

0:25:01.760 --> 0:25:03.520
<v Speaker 2>continue to track it because that is a big move

0:25:03.560 --> 0:25:05.920
<v Speaker 2>in Micron, at one stage in the session on track

0:25:05.960 --> 0:25:08.240
<v Speaker 2>for its biggest jump since twenty eleven.

0:25:08.480 --> 0:25:08.920
<v Speaker 3>And in the.

0:25:08.880 --> 0:25:11.280
<v Speaker 2>Background, there's a lot more to talk about in the

0:25:11.280 --> 0:25:12.320
<v Speaker 2>context of AI.

0:25:12.200 --> 0:25:12.879
<v Speaker 3>Let's discuss it.

0:25:12.960 --> 0:25:16.920
<v Speaker 2>Where I Ooko Yoshioka, portfolio manager at Wealth Enhancement Group,

0:25:17.080 --> 0:25:19.080
<v Speaker 2>also a holder of shares of Meta, and I thought

0:25:19.160 --> 0:25:20.800
<v Speaker 2>that's probably where we would start.

0:25:21.680 --> 0:25:22.360
<v Speaker 3>Let's do that.

0:25:22.480 --> 0:25:25.840
<v Speaker 2>Meta's now down modestly six tens of a percent, And

0:25:25.920 --> 0:25:28.879
<v Speaker 2>while I was there at Menlo Park yesterday, there was

0:25:28.920 --> 0:25:32.240
<v Speaker 2>a notable move higher the moment that Oryan was unveiled.

0:25:32.680 --> 0:25:34.520
<v Speaker 2>Why did investors react that way?

0:25:35.680 --> 0:25:35.880
<v Speaker 13>Sure?

0:25:35.960 --> 0:25:38.600
<v Speaker 14>Hi ed good to see you, so, you know, orian

0:25:38.880 --> 0:25:42.440
<v Speaker 14>was pretty interesting to see. You know, we're getting sort

0:25:42.440 --> 0:25:46.600
<v Speaker 14>of closer and closer to the minority report moment. I

0:25:46.600 --> 0:25:49.720
<v Speaker 14>think in real life, at least, that's what it seemed like.

0:25:50.240 --> 0:25:52.960
<v Speaker 14>Just with the combination of the glasses as well as

0:25:53.160 --> 0:25:56.240
<v Speaker 14>the wristband that can control or or sense a lot

0:25:56.280 --> 0:25:58.879
<v Speaker 14>of the movements in terms of how you interact with

0:25:59.040 --> 0:26:03.480
<v Speaker 14>the it was a really interesting time to see Meta

0:26:04.280 --> 0:26:08.480
<v Speaker 14>and just their overall investments into AI and AR and

0:26:08.880 --> 0:26:12.480
<v Speaker 14>just all the synergies you're seeing across the landscape.

0:26:13.480 --> 0:26:15.840
<v Speaker 2>You and I have discussed the market so often, and

0:26:15.880 --> 0:26:19.119
<v Speaker 2>we've often reflected that like one session is just not

0:26:19.240 --> 0:26:22.000
<v Speaker 2>worth dwelling on often, but it is an interesting moment.

0:26:22.119 --> 0:26:26.199
<v Speaker 2>Right now, Micron continues to push higher. There's evidence that

0:26:26.640 --> 0:26:30.000
<v Speaker 2>it's broad. It's not just GPUs but high bandwidth memory

0:26:30.040 --> 0:26:33.959
<v Speaker 2>as well. There's evidence in the forecast in sales. What

0:26:34.000 --> 0:26:37.000
<v Speaker 2>does that tell you? You lead research at wealth enhancement groups,

0:26:37.000 --> 0:26:38.399
<v Speaker 2>So how are you adjusting your model?

0:26:39.520 --> 0:26:39.760
<v Speaker 14>Sure?

0:26:39.960 --> 0:26:40.680
<v Speaker 3>So, you know, I.

0:26:40.640 --> 0:26:43.320
<v Speaker 14>Think with the memory side of things, you know, they

0:26:43.320 --> 0:26:46.879
<v Speaker 14>were going through an inventory cycle. You know, the nand

0:26:47.280 --> 0:26:50.720
<v Speaker 14>side of things has been a lot softer over the

0:26:50.760 --> 0:26:53.120
<v Speaker 14>last two years, and so now you're starting to see

0:26:53.119 --> 0:26:55.560
<v Speaker 14>a little bit of a recovery on the nand side.

0:26:55.880 --> 0:27:01.640
<v Speaker 14>And then you are seeing this growth vehicle with bandwidth memory.

0:27:01.760 --> 0:27:04.960
<v Speaker 14>And so not only are you seeing it impact Micron,

0:27:05.080 --> 0:27:07.960
<v Speaker 14>but you know, Land Research is a maker of a

0:27:07.960 --> 0:27:11.720
<v Speaker 14>lot of the equipment that is for high bandwidth memory,

0:27:12.000 --> 0:27:16.160
<v Speaker 14>and so you're seeing that potential growth in twenty twenty

0:27:16.200 --> 0:27:20.920
<v Speaker 14>five and that can continue beyond twenty twenty five as well.

0:27:21.160 --> 0:27:24.879
<v Speaker 2>The market's kind of got that trifecta this morning, economic data,

0:27:25.480 --> 0:27:30.439
<v Speaker 2>central bank noise, and then earnings. Right now, for the

0:27:30.480 --> 0:27:34.600
<v Speaker 2>technology investor, how do you apportion your focus to each

0:27:34.640 --> 0:27:35.080
<v Speaker 2>of those?

0:27:36.840 --> 0:27:39.760
<v Speaker 14>Sure? So, I think with technology we have to take

0:27:39.800 --> 0:27:42.560
<v Speaker 14>a very long term view I mean, at least that's

0:27:42.560 --> 0:27:45.399
<v Speaker 14>what we do here at Wealth Enhancement Group. Tech is

0:27:45.440 --> 0:27:48.159
<v Speaker 14>going to be a part of every investor's sort of portfolio,

0:27:48.280 --> 0:27:50.400
<v Speaker 14>but you balance it out with some of the more

0:27:50.760 --> 0:27:53.919
<v Speaker 14>cyclical areas of the market in which we can see

0:27:53.960 --> 0:27:57.159
<v Speaker 14>strength in the overall economy and those areas that are

0:27:57.200 --> 0:28:00.320
<v Speaker 14>also sensitive to the direction of interest rates, which the

0:28:00.359 --> 0:28:02.960
<v Speaker 14>FED does you know, control a lot of that. So

0:28:03.400 --> 0:28:06.359
<v Speaker 14>you know, a very diversified portfolio is something that.

0:28:06.280 --> 0:28:07.520
<v Speaker 1>We do advocate for.

0:28:08.280 --> 0:28:11.680
<v Speaker 14>But you know, I think technology plays a big lead

0:28:11.720 --> 0:28:12.000
<v Speaker 14>in that.

0:28:14.359 --> 0:28:17.160
<v Speaker 2>Right now, what is the direction of travel for technology

0:28:17.200 --> 0:28:18.879
<v Speaker 2>for the rest of this year. I'm asking you to

0:28:18.920 --> 0:28:22.320
<v Speaker 2>give me your crystal bull prediction because.

0:28:22.000 --> 0:28:25.359
<v Speaker 14>My crystal ball is always so clear, So you know,

0:28:25.640 --> 0:28:28.879
<v Speaker 14>in terms of you know, for for the rest of

0:28:28.880 --> 0:28:31.159
<v Speaker 14>the year, I think things can be choppy. But I

0:28:31.160 --> 0:28:34.040
<v Speaker 14>think what you want to always lean into is, you know,

0:28:34.080 --> 0:28:36.959
<v Speaker 14>what is going to help you sleep at night and

0:28:37.040 --> 0:28:40.600
<v Speaker 14>what are the quality companies that allow for your portfolio

0:28:40.760 --> 0:28:43.360
<v Speaker 14>to continue to grow, whether it's in technology or not.

0:28:43.800 --> 0:28:45.560
<v Speaker 14>And I think that's where, you know, we want to

0:28:45.600 --> 0:28:49.080
<v Speaker 14>make sure that regardless of what the macro environment gives us,

0:28:49.320 --> 0:28:53.440
<v Speaker 14>we're you know, invested in companies that have high quality

0:28:53.720 --> 0:28:56.440
<v Speaker 14>and strong growth prospects in the future.

0:28:58.320 --> 0:29:01.600
<v Speaker 2>Right now, all our focuses on US names and the

0:29:01.640 --> 0:29:04.520
<v Speaker 2>activities here, But do you ever look further afield iocode

0:29:04.560 --> 0:29:05.680
<v Speaker 2>to Europe to Asia.

0:29:07.120 --> 0:29:11.520
<v Speaker 14>Absolutely. I think having a diverse portfolio across the globe

0:29:11.640 --> 0:29:15.280
<v Speaker 14>is something that we again advocate for, simply because you

0:29:15.360 --> 0:29:18.480
<v Speaker 14>never know when things turn around. And you know, one

0:29:18.520 --> 0:29:22.680
<v Speaker 14>of the major drivers is the direction of the US dollar,

0:29:23.160 --> 0:29:25.440
<v Speaker 14>and we think that the US dollar can weaken a

0:29:25.480 --> 0:29:28.440
<v Speaker 14>little bit here just given the direction of interest rates,

0:29:29.000 --> 0:29:33.120
<v Speaker 14>and international and emerging market stocks can benefit, and again

0:29:33.480 --> 0:29:38.800
<v Speaker 14>you know their valuations are very attractive relative to US markets.

0:29:39.560 --> 0:29:42.480
<v Speaker 2>We expect to hear from the prosecutors in the indictment

0:29:42.520 --> 0:29:44.200
<v Speaker 2>of New York Mary Adams very soon.

0:29:44.240 --> 0:29:46.440
<v Speaker 3>We may have to move to that. But before we

0:29:46.560 --> 0:29:47.920
<v Speaker 3>lose you, I want to ask you.

0:29:47.840 --> 0:29:52.120
<v Speaker 2>Something that that other investors are now asking themselves. How

0:29:52.160 --> 0:29:54.560
<v Speaker 2>important is it for you to get hands on with technology?

0:29:54.600 --> 0:29:56.560
<v Speaker 2>If you think about what Meta showed us yesterday and

0:29:56.640 --> 0:29:59.320
<v Speaker 2>I did with a Ryan with ray band Meta, but

0:29:59.400 --> 0:30:03.400
<v Speaker 2>also using Meta aion device, is that something that informs

0:30:03.440 --> 0:30:05.960
<v Speaker 2>your investment thesis by actually using the tech.

0:30:07.120 --> 0:30:10.400
<v Speaker 14>I think both using it and seeing others use it

0:30:10.480 --> 0:30:13.479
<v Speaker 14>and engage with it, because it's not just myself, but

0:30:13.680 --> 0:30:17.080
<v Speaker 14>you know people across all age groups and demographics. I

0:30:17.120 --> 0:30:20.800
<v Speaker 14>want to see exactly how people are engaging with the technology,

0:30:20.840 --> 0:30:24.280
<v Speaker 14>and younger people are much more adapt to adopting some

0:30:24.360 --> 0:30:26.800
<v Speaker 14>of the technology. But then you also want to see

0:30:26.800 --> 0:30:29.440
<v Speaker 14>how can you know older people adapt to it as

0:30:29.480 --> 0:30:33.840
<v Speaker 14>well and integrated into their lives, because that is going

0:30:33.920 --> 0:30:37.560
<v Speaker 14>to provide a larger sort of market and better growth over.

0:30:37.360 --> 0:30:39.840
<v Speaker 2>The long term. I think back to when you and

0:30:39.920 --> 0:30:42.720
<v Speaker 2>I were discussing in videos earnings, and we remember the

0:30:42.760 --> 0:30:44.480
<v Speaker 2>Capex story, but I think we've moved on.

0:30:44.560 --> 0:30:45.880
<v Speaker 3>Ak Eshoko, thank you.

0:30:46.240 --> 0:30:48.920
<v Speaker 2>Let's head out to a press conference where the prosecutors

0:30:48.920 --> 0:30:52.280
<v Speaker 2>in the indictment of New York Merrick Adams are speaking.

0:30:51.920 --> 0:30:55.240
<v Speaker 10>Peracy charges against Eric Adams, the mayor of New York City.

0:30:56.120 --> 0:30:59.360
<v Speaker 10>As the indictment alleges Mayor Adams engage in a long

0:30:59.440 --> 0:31:03.080
<v Speaker 10>running consprent year see in which he solicited and knowingly

0:31:03.120 --> 0:31:08.760
<v Speaker 10>accepted illegal campaign contributions from foreign donors and corporations. As

0:31:08.800 --> 0:31:12.040
<v Speaker 10>we allege, Mayor Adams took these contributions even though he

0:31:12.120 --> 0:31:14.920
<v Speaker 10>knew they were illegal and even though he knew these

0:31:14.920 --> 0:31:20.400
<v Speaker 10>contributions were attempts by a Turkish government official and Turkish businessmen.

0:31:20.040 --> 0:31:23.480
<v Speaker 1>To buy influence with him. We also alleged that the

0:31:23.520 --> 0:31:25.720
<v Speaker 1>mayor sought and accepted well.

0:31:25.480 --> 0:31:29.440
<v Speaker 10>Over one hundred thousand dollars in luxury travel benefits from

0:31:29.480 --> 0:31:32.000
<v Speaker 10>some of the same foreign actors who arranged many of

0:31:32.040 --> 0:31:37.360
<v Speaker 10>the illegal campaign contributions. These benefits included free international business

0:31:37.360 --> 0:31:39.880
<v Speaker 10>class flights and opulent hotel.

0:31:39.600 --> 0:31:43.200
<v Speaker 1>Rooms in foreign cities. The mayor had a duty to

0:31:43.240 --> 0:31:44.120
<v Speaker 1>disclose these.

0:31:43.920 --> 0:31:46.920
<v Speaker 10>Gifts on his annual public disclosure forms so that the

0:31:46.960 --> 0:31:50.760
<v Speaker 10>public could see who was giving him what, but as

0:31:50.760 --> 0:31:54.760
<v Speaker 10>we allege, year after year after year, he kept the

0:31:54.760 --> 0:31:57.840
<v Speaker 10>public in the dark. He told the public he received

0:31:57.880 --> 0:32:02.280
<v Speaker 10>no gifts, even though he was secretly being showered with them.

0:32:03.160 --> 0:32:05.640
<v Speaker 10>We alleged that Adams accepted these benefits knowing that they

0:32:05.640 --> 0:32:08.760
<v Speaker 10>were given to him because of his position, and in

0:32:08.800 --> 0:32:12.280
<v Speaker 10>exchange for some of those improper benefits, he intervened in

0:32:12.320 --> 0:32:15.280
<v Speaker 10>the New York City Fire Department's inspection process for a

0:32:15.320 --> 0:32:19.440
<v Speaker 10>building owned and operated by the Turkish government, allowing it

0:32:19.480 --> 0:32:20.800
<v Speaker 10>to open even though it had.

0:32:20.640 --> 0:32:22.000
<v Speaker 1>Not passed the fire inspection.

0:32:23.400 --> 0:32:26.880
<v Speaker 10>The corruption allegend the indictment is as I said, long running.

0:32:27.520 --> 0:32:31.320
<v Speaker 10>As we allegend, the indictment Adams's solicitation of illegal campaign

0:32:31.400 --> 0:32:35.480
<v Speaker 10>contributions began in twenty eighteen. After he started raising funds

0:32:35.520 --> 0:32:38.360
<v Speaker 10>for his twenty twenty one mayoral campaign. He agreed to

0:32:38.360 --> 0:32:43.680
<v Speaker 10>take contributions offered by multiple Turkish businessmen, several of whom

0:32:43.720 --> 0:32:47.960
<v Speaker 10>he met in Turkey. Adams knew that these wealthy individuals

0:32:48.040 --> 0:32:51.520
<v Speaker 10>could not legally donate in the US election. Federal law

0:32:51.640 --> 0:32:56.280
<v Speaker 10>clearly prohibits foreign donations. That's how we protect our elections

0:32:56.480 --> 0:33:01.160
<v Speaker 10>from foreign influenceet Adams directed his staff to pursue this

0:33:01.240 --> 0:33:05.720
<v Speaker 10>illegal money to support his campaign from mayor, and as

0:33:05.760 --> 0:33:09.200
<v Speaker 10>we allege, Adams continued to pursue foreign money in secret

0:33:09.680 --> 0:33:13.160
<v Speaker 10>well into twenty twenty one, and it didn't stop with

0:33:13.200 --> 0:33:16.280
<v Speaker 10>his first campaign from mayor. As we allege, in twenty

0:33:16.360 --> 0:33:20.560
<v Speaker 10>twenty three, the mayor rekindled these corrupt relationships, seeking more

0:33:20.640 --> 0:33:24.400
<v Speaker 10>illegal campaign contributions from some of the same foreign sources

0:33:24.640 --> 0:33:29.480
<v Speaker 10>to support his reelection campaign. Adams also took contributions that

0:33:29.520 --> 0:33:34.640
<v Speaker 10>broke other laws. As we allege, he sought contributions from businessmen.

0:33:34.600 --> 0:33:36.600
<v Speaker 1>Far in excess of what the law allowed.

0:33:37.480 --> 0:33:40.960
<v Speaker 10>He also allegedly sought contributions from corporations, which are not

0:33:41.040 --> 0:33:44.760
<v Speaker 10>allowed to contribute at all in New York City elections.

0:33:45.480 --> 0:33:48.400
<v Speaker 10>Many of those illegal corporate contributions were organized by the

0:33:48.400 --> 0:33:53.200
<v Speaker 10>same people who organized the illegal foreign contributions, and Adams

0:33:53.240 --> 0:33:56.800
<v Speaker 10>allegedly disguised them all in the same way by accepting

0:33:56.800 --> 0:33:59.880
<v Speaker 10>the money through so called straw downers. A straw downer

0:34:00.000 --> 0:34:03.960
<v Speaker 10>contribute someone else's money, hiding the money's illegal source, such

0:34:04.000 --> 0:34:07.120
<v Speaker 10>as a foreign businessman, a corporation, or a wealthy New

0:34:07.200 --> 0:34:11.000
<v Speaker 10>Yorker who has already contributed the maximum amount allowed, And

0:34:11.040 --> 0:34:14.600
<v Speaker 10>as we allege, Adams circumvented all of these laws, taking

0:34:14.600 --> 0:34:18.920
<v Speaker 10>contributions from exactly the sources the law prohibits, all.

0:34:18.800 --> 0:34:20.560
<v Speaker 1>To benefit his mayoral campaigns.

0:34:21.840 --> 0:34:25.600
<v Speaker 10>Now, Adam's also personally benefited from the illegal conduct.

0:34:25.840 --> 0:34:29.000
<v Speaker 1>A legend of the indictment, Adams solicited.

0:34:28.480 --> 0:34:31.680
<v Speaker 10>And accepted over one hundred thousand dollars in luxury travel

0:34:31.680 --> 0:34:35.359
<v Speaker 10>benefits four years from wealthy Turkish business people and at

0:34:35.400 --> 0:34:39.359
<v Speaker 10>least one Turkish government official seeking to gain influence over him.

0:34:40.200 --> 0:34:43.799
<v Speaker 10>Adams started accepting undisclosed luxury travel benefits at least as

0:34:43.840 --> 0:34:47.480
<v Speaker 10>early as twenty sixteen. He took these benefits nearly every

0:34:47.560 --> 0:34:48.640
<v Speaker 10>year through.

0:34:48.400 --> 0:34:49.840
<v Speaker 1>Twenty twenty one.

0:34:50.520 --> 0:34:52.600
<v Speaker 10>Here are some of the benefits that we uncovered during

0:34:52.640 --> 0:34:57.719
<v Speaker 10>our investigation. In twenty sixteen, Adams flew to India through

0:34:57.800 --> 0:35:01.840
<v Speaker 10>Turkey and received two free round trip upgrades for business

0:35:01.880 --> 0:35:06.040
<v Speaker 10>class seats that's the highest class on Turkey's national airline.

0:35:06.560 --> 0:35:09.680
<v Speaker 10>Those upgrades were worth more than twelve thousand dollars and

0:35:09.719 --> 0:35:13.960
<v Speaker 10>none of it was publicly disclosed. In twenty seventeen, Adams

0:35:13.960 --> 0:35:17.000
<v Speaker 10>accepted free business class tickets for himself and his travel

0:35:17.040 --> 0:35:21.279
<v Speaker 10>companions to France, Turkey and China, and he was put

0:35:21.360 --> 0:35:24.040
<v Speaker 10>up in the Bentley Suite in the Saint Regis Hotel

0:35:24.120 --> 0:35:27.200
<v Speaker 10>in Istanbul. All of that was worth more than forty

0:35:27.239 --> 0:35:29.319
<v Speaker 10>one thousand dollars and none of.

0:35:29.239 --> 0:35:30.560
<v Speaker 1>It was publicly disclosed.

0:35:31.440 --> 0:35:35.319
<v Speaker 10>Also in twenty seventeen, he flew to China again through

0:35:35.360 --> 0:35:39.160
<v Speaker 10>Turkey and accepted two free business class tickets for himself.

0:35:39.080 --> 0:35:39.880
<v Speaker 1>And a companion.

0:35:40.719 --> 0:35:43.759
<v Speaker 10>Those were worth more than sixteen thousand dollars and none

0:35:43.800 --> 0:35:46.919
<v Speaker 10>of it was publicly disclosed. In twenty eighteen, he flew

0:35:46.920 --> 0:35:50.840
<v Speaker 10>to Hungary through Turkey and accepted free upgrades for business

0:35:50.840 --> 0:35:53.960
<v Speaker 10>class seats. Those were worth more than twelve thousand dollars,

0:35:54.440 --> 0:35:56.160
<v Speaker 10>and none of it was publicly disclosed.

0:35:57.280 --> 0:36:00.120
<v Speaker 1>In twenty nineteen, he flew to Turkey and accepted.

0:35:59.800 --> 0:36:02.600
<v Speaker 10>A free upgrade to business class for his companion in

0:36:02.600 --> 0:36:04.839
<v Speaker 10>a free stay in a lavish suite at the Saint

0:36:04.880 --> 0:36:08.239
<v Speaker 10>Regis Hotel in Istanbul that was worth more than nine

0:36:08.239 --> 0:36:12.080
<v Speaker 10>thousand dollars, and again none of it was publicly disclosed.

0:36:13.000 --> 0:36:16.680
<v Speaker 10>In twenty twenty one, Adams solicited business class tickets to Istanbul,

0:36:17.000 --> 0:36:20.760
<v Speaker 10>stays at luxury hotels and resorts, yacht tours, and meals.

0:36:21.280 --> 0:36:23.840
<v Speaker 10>As we allege, he asked to pay a nominal fee

0:36:24.160 --> 0:36:26.680
<v Speaker 10>for all of this in order to disguise what we

0:36:26.719 --> 0:36:30.440
<v Speaker 10>allege were in fact bribes. He canceled that trip at

0:36:30.440 --> 0:36:33.160
<v Speaker 10>the very last minute, but the benefits that he solicited

0:36:33.200 --> 0:36:37.439
<v Speaker 10>were worth more than twenty one thousand dollars. And later

0:36:37.520 --> 0:36:41.800
<v Speaker 10>in twenty twenty one, Adams flew Taghana again through Turkey

0:36:42.239 --> 0:36:45.000
<v Speaker 10>and accepted free business class ticket upgrades and other.

0:36:44.880 --> 0:36:47.480
<v Speaker 1>Gifts while he was on a layover in Istanbul.

0:36:48.440 --> 0:36:51.200
<v Speaker 10>Those benefits were worth more than twelve thousand dollars, and

0:36:51.360 --> 0:36:53.840
<v Speaker 10>just like all the other benefits I've just run through.

0:36:53.760 --> 0:36:55.239
<v Speaker 1>None of it was publicly disclosed.

0:36:56.480 --> 0:36:59.600
<v Speaker 10>Now, I want to be clear, these upgrades and freebies

0:36:59.640 --> 0:37:03.640
<v Speaker 10>were not part of some frequent flyer or loyalty program

0:37:03.680 --> 0:37:05.160
<v Speaker 10>available to the general public.

0:37:05.840 --> 0:37:06.520
<v Speaker 1>As we allege.

0:37:06.600 --> 0:37:09.160
<v Speaker 10>This was a multi year scheme to buy favor with

0:37:09.280 --> 0:37:13.320
<v Speaker 10>a single New York City politician on the rise, Eric Adams.

0:37:14.840 --> 0:37:15.400
<v Speaker 1>Now, this is a.

0:37:15.440 --> 0:37:19.040
<v Speaker 10>Chart with all of the undisclosed travel benefits that we

0:37:19.120 --> 0:37:21.440
<v Speaker 10>uncovered during the investigation.

0:37:22.239 --> 0:37:23.560
<v Speaker 1>We just listed all out here.

0:37:24.320 --> 0:37:27.600
<v Speaker 10>You see the year twenty sixteen, twenty seventeen, twenty seventeen,

0:37:27.640 --> 0:37:29.640
<v Speaker 10>twenty eighteen, twenty nineteen.

0:37:29.320 --> 0:37:32.440
<v Speaker 1>And twenty the destination.

0:37:33.719 --> 0:37:37.719
<v Speaker 10>India all the way to Ghana, the benefits, the free

0:37:37.800 --> 0:37:41.680
<v Speaker 10>upgrades or free tickets altogether, the hotel stays.

0:37:41.640 --> 0:37:42.480
<v Speaker 1>And the value.

0:37:42.560 --> 0:37:45.719
<v Speaker 10>And if you just sum up all the dollar amounts here,

0:37:45.800 --> 0:37:47.600
<v Speaker 10>you get to more than one hundred thousand dollars. And

0:37:47.600 --> 0:37:51.359
<v Speaker 10>of course, as I said before, every single trip that

0:37:51.400 --> 0:37:59.840
<v Speaker 10>we list here was undisclosed, as we allegend the indictment.

0:38:00.440 --> 0:38:04.240
<v Speaker 10>In addition to not disclosing these benefits, Adams sometimes created

0:38:04.280 --> 0:38:06.960
<v Speaker 10>fake paper trails to try to cover up the travel

0:38:06.960 --> 0:38:09.040
<v Speaker 10>benefits he solicited and received.

0:38:09.640 --> 0:38:10.760
<v Speaker 1>Let me give you one example.

0:38:11.640 --> 0:38:14.759
<v Speaker 10>Adams wrote emails to his staff, suggesting he paid for

0:38:14.840 --> 0:38:18.560
<v Speaker 10>his twenty seventeen business class flights on the Turkish Airline, when,

0:38:18.760 --> 0:38:20.040
<v Speaker 10>as we allege, he did not.

0:38:21.120 --> 0:38:22.800
<v Speaker 1>Those flights were worth a lot of money.

0:38:23.200 --> 0:38:25.720
<v Speaker 10>Just one ticket alone costs more than ten thousand dollars,

0:38:26.560 --> 0:38:29.400
<v Speaker 10>But months after taking the flights, Adams wrote an email

0:38:29.600 --> 0:38:31.799
<v Speaker 10>to a staff member and told the staff member that

0:38:31.880 --> 0:38:34.880
<v Speaker 10>he had left cash in her desk drawer and that

0:38:34.960 --> 0:38:37.520
<v Speaker 10>she should send the money to the Turkish Airline to

0:38:37.560 --> 0:38:39.360
<v Speaker 10>pay for a trip he had already taken.

0:38:40.320 --> 0:38:45.480
<v Speaker 1>As the Indictmam makes clear, that's just a clumsy cover up. Now,

0:38:45.560 --> 0:38:46.399
<v Speaker 1>just because.

0:38:46.080 --> 0:38:48.680
<v Speaker 10>Adams received benefits for free, that doesn't mean that there

0:38:48.719 --> 0:38:52.920
<v Speaker 10>weren't strings attached. As we allege, a particular Turkish government

0:38:52.920 --> 0:38:56.200
<v Speaker 10>official behind many of the benefits Adams sought and accepted,

0:38:56.680 --> 0:38:59.759
<v Speaker 10>gave Adams all these things to gain influence over him.

0:39:00.440 --> 0:39:01.080
<v Speaker 1>We alleged that.

0:39:01.000 --> 0:39:04.600
<v Speaker 10>Adams knew that and took the benefits anyway. We alleged

0:39:04.600 --> 0:39:07.240
<v Speaker 10>that when the Turkish government official needed him, Adams also

0:39:07.280 --> 0:39:10.080
<v Speaker 10>took corrupt official action in exchange for some of the

0:39:10.160 --> 0:39:13.720
<v Speaker 10>luxury travel benefits. In twenty twenty one, the Turkish government

0:39:13.719 --> 0:39:16.200
<v Speaker 10>official was trying to open a brand new high rise

0:39:16.239 --> 0:39:19.000
<v Speaker 10>building in Manhattan that would house Turkey's consulate.

0:39:19.760 --> 0:39:21.200
<v Speaker 1>There was significant time.

0:39:21.000 --> 0:39:25.160
<v Speaker 10>Pressure because the Turkish official desperately needed the building to

0:39:25.160 --> 0:39:27.680
<v Speaker 10>be open in time for a visit from Turkey's president.

0:39:28.360 --> 0:39:30.960
<v Speaker 10>This building was important to the Turkish official, and it

0:39:31.000 --> 0:39:34.439
<v Speaker 10>was important to Turkey, but the fd and y's fire

0:39:34.480 --> 0:39:37.480
<v Speaker 10>safety professionals wouldn't let the building open because the building

0:39:37.520 --> 0:39:41.520
<v Speaker 10>hadn't passed an inspection, and not just that, some of

0:39:41.560 --> 0:39:43.480
<v Speaker 10>the people of fd and Y thought the building had

0:39:43.520 --> 0:39:46.160
<v Speaker 10>so many issues and defects that the building was not

0:39:46.560 --> 0:39:50.239
<v Speaker 10>safe to occupy. So the Turkish official sent word to

0:39:50.280 --> 0:39:54.000
<v Speaker 10>Adams that it was quote his turn unquote to support Turkey,

0:39:54.760 --> 0:39:57.359
<v Speaker 10>and as we allege, Adams delivered and pressure the fire

0:39:57.400 --> 0:40:01.319
<v Speaker 10>department to let the building open. The NY professionals were

0:40:01.440 --> 0:40:04.520
<v Speaker 10>convinced that they would lose their jobs if they didn't back.

0:40:04.360 --> 0:40:07.840
<v Speaker 1>Down, and so they did. They got out of the

0:40:07.880 --> 0:40:11.520
<v Speaker 1>way and let the building open. The Turkish official got what.

0:40:11.520 --> 0:40:14.440
<v Speaker 10>He wanted, and, as we explained in the indictment, just

0:40:14.560 --> 0:40:18.080
<v Speaker 10>four days after Adams held up his end of the bargain,

0:40:18.280 --> 0:40:21.960
<v Speaker 10>he went right back to soliciting more travel benefits from

0:40:22.040 --> 0:40:26.240
<v Speaker 10>the Turkish airline. Now, I want to make three things

0:40:26.560 --> 0:40:31.560
<v Speaker 10>crystal clear. First, the conduct alleged in the indictment, the

0:40:31.600 --> 0:40:34.799
<v Speaker 10>foreign money, the corporate money, the bribery, the years of

0:40:34.840 --> 0:40:37.640
<v Speaker 10>concealment is a grave breach of the public's trust.

0:40:38.680 --> 0:40:40.320
<v Speaker 1>Public office is a privilege.

0:40:41.360 --> 0:40:44.439
<v Speaker 10>We alleged that Mayor Adams abused that privilege and broke

0:40:44.480 --> 0:40:48.000
<v Speaker 10>the law, laws that are designed to ensure that officials

0:40:48.080 --> 0:40:51.600
<v Speaker 10>like him serve the people, not the highest bidder, not

0:40:51.719 --> 0:40:55.600
<v Speaker 10>a foreign bidder, and certainly not a foreign power. These

0:40:55.640 --> 0:40:59.640
<v Speaker 10>are bright red lines, and we allege that the Mayor crossed.

0:40:59.239 --> 0:41:01.320
<v Speaker 1>Them again and again for years.

0:41:01.480 --> 0:41:05.440
<v Speaker 10>That is the only reason we are here today. Second,

0:41:06.239 --> 0:41:10.160
<v Speaker 10>this investigation continues. We continue to dig and we will

0:41:10.160 --> 0:41:14.840
<v Speaker 10>hold more people accountable, and I encourage anyone with information

0:41:14.880 --> 0:41:16.680
<v Speaker 10>to come forward and to do so before it is

0:41:16.719 --> 0:41:17.120
<v Speaker 10>too late.

0:41:18.400 --> 0:41:20.560
<v Speaker 1>And Third, the Southern District.

0:41:20.320 --> 0:41:23.000
<v Speaker 10>Of New York remains committed to rooting out corruption without

0:41:23.040 --> 0:41:26.880
<v Speaker 10>fear or favor, and without regard to partisan politics. We

0:41:26.960 --> 0:41:30.200
<v Speaker 10>are not focused on the right or the left. We

0:41:30.239 --> 0:41:33.359
<v Speaker 10>are focused only on right and wrong. That is our

0:41:33.480 --> 0:41:34.959
<v Speaker 10>duty and we will fulfill it.

0:41:36.920 --> 0:41:37.120
<v Speaker 1>Now.

0:41:37.160 --> 0:41:40.400
<v Speaker 10>Today's charges are the product of a tremendous partnership. I

0:41:40.440 --> 0:41:42.920
<v Speaker 10>want to thank our partners at FBI and the New

0:41:42.960 --> 0:41:45.359
<v Speaker 10>York City Department of Investigation who have been with us

0:41:45.360 --> 0:41:49.319
<v Speaker 10>every step of the way. And finally, I want to

0:41:49.320 --> 0:41:52.759
<v Speaker 10>commend the outstanding career prosecutors from SDN Y who are

0:41:52.760 --> 0:41:57.880
<v Speaker 10>handling this case, Celia Cohen, Andrew Roorbach, Hagen Scotten, and

0:41:57.920 --> 0:42:00.839
<v Speaker 10>Derek Wickstrom, and the chiefs of the pub Corruption Unit

0:42:01.160 --> 0:42:05.120
<v Speaker 10>Laura Pomerantz and Robert Sobelman. It's now my pleasure to

0:42:05.120 --> 0:42:08.480
<v Speaker 10>turn the podium over to FBI Assistant Director in charge

0:42:08.840 --> 0:42:09.520
<v Speaker 10>James Denying.

0:42:17.960 --> 0:42:22.080
<v Speaker 15>Good morning, and thank you for being here today. The

0:42:22.080 --> 0:42:26.120
<v Speaker 15>indictment of a sitting mayor is not just another headline.

0:42:26.320 --> 0:42:26.960
<v Speaker 3>It is a.

0:42:26.840 --> 0:42:30.799
<v Speaker 15>Stinging reminder that no one is above the law or

0:42:30.840 --> 0:42:35.400
<v Speaker 15>beyond reproach, and it serves as a sobering moment for

0:42:35.560 --> 0:42:39.680
<v Speaker 15>all of us who place our trust in elected officials.

0:42:41.760 --> 0:42:45.760
<v Speaker 15>Today's indictment sends a powerful message to every elected official

0:42:45.800 --> 0:42:51.360
<v Speaker 15>in this country. Public service is a profound responsibility and

0:42:51.520 --> 0:42:57.200
<v Speaker 15>should be a noble calling. When that's perverted by greed

0:42:57.600 --> 0:43:03.160
<v Speaker 15>and dishonesty, it robs us of our trust. It's a

0:43:03.239 --> 0:43:07.640
<v Speaker 15>pact between leaders and their communities built on the pillars

0:43:07.680 --> 0:43:13.200
<v Speaker 15>of trust, accountability, and transparency. When that pact is broken,

0:43:14.120 --> 0:43:20.080
<v Speaker 15>the consequences ripple far beyond one office or one election cycle.

0:43:21.960 --> 0:43:24.760
<v Speaker 1>We know not all leaders are corrupt.

0:43:26.239 --> 0:43:30.000
<v Speaker 15>We know there are countless public servants who wake up

0:43:30.040 --> 0:43:32.640
<v Speaker 15>every day with the intention of doing.

0:43:32.600 --> 0:43:34.520
<v Speaker 1>Right by their constituents.

0:43:35.960 --> 0:43:39.560
<v Speaker 15>But we cannot ignore the shadow cast by moments like this.

0:43:41.480 --> 0:43:46.680
<v Speaker 15>When trust is eroded, it takes years, sometimes decades to rebuild.

0:43:48.480 --> 0:43:49.080
<v Speaker 1>The weight of.

0:43:49.040 --> 0:43:53.680
<v Speaker 15>Today's actions falls not just on the indicted official, but

0:43:53.760 --> 0:43:57.520
<v Speaker 15>on every other public official, who must now work harder

0:43:58.360 --> 0:44:03.640
<v Speaker 15>to earn the public's confidence in them. It's important to

0:44:03.719 --> 0:44:08.959
<v Speaker 15>remember accountability isn't just about punishing those with alleged wrongdoings.

0:44:10.000 --> 0:44:17.080
<v Speaker 15>It's about lifting the communities they've let down. It's about rebuilding, restoring,

0:44:17.920 --> 0:44:24.640
<v Speaker 15>and reimagining what public servants can and should do. It's

0:44:24.719 --> 0:44:27.560
<v Speaker 15>up to us to demand more from our leaders, to

0:44:27.640 --> 0:44:31.120
<v Speaker 15>hold them to the highest standards, and to remind them

0:44:31.560 --> 0:44:34.160
<v Speaker 15>that the power of public office should.

0:44:33.920 --> 0:44:34.960
<v Speaker 1>Never be abused.

0:44:37.040 --> 0:44:40.880
<v Speaker 15>While some may be disappointed today, let me encourage you

0:44:41.239 --> 0:44:46.640
<v Speaker 15>not to be defeated. The strength of our communities, our

0:44:46.680 --> 0:44:51.399
<v Speaker 15>faith in one another, and our collective resilience are far

0:44:51.520 --> 0:44:58.280
<v Speaker 15>greater than the alleged failings of anyone individual. In closing,

0:44:58.360 --> 0:45:00.560
<v Speaker 15>I'd like to thank the US Attorney for the Southern

0:45:00.560 --> 0:45:06.200
<v Speaker 15>District of New York, Damien Williams and his office, Commissioner

0:45:07.040 --> 0:45:10.600
<v Speaker 15>Joshlyn Strauber, and the New York City Department Investigation and

0:45:10.680 --> 0:45:14.600
<v Speaker 15>her team, as well as my team, the Public Corruption

0:45:14.680 --> 0:45:16.479
<v Speaker 15>Squad here at FBI New York.

0:45:17.200 --> 0:45:17.520
<v Speaker 1>Thank you.

0:45:22.120 --> 0:45:24.640
<v Speaker 10>I'd like to welcome up Commissioner Jocelyn Strauber from the

0:45:24.640 --> 0:45:26.200
<v Speaker 10>New York City Department of Investigation.

0:45:31.560 --> 0:45:32.320
<v Speaker 9>Thank you, Damien.

0:45:33.400 --> 0:45:33.960
<v Speaker 1>Good morning.

0:45:35.320 --> 0:45:39.000
<v Speaker 13>Today, for the first time in New York City's modern history,

0:45:39.880 --> 0:45:43.520
<v Speaker 13>we announced criminal charges against the City Mayor of New

0:45:43.640 --> 0:45:49.040
<v Speaker 13>York City. As our highest elected official, the mayor should

0:45:49.080 --> 0:45:53.160
<v Speaker 13>set the standard for all of city government and exemplify

0:45:53.239 --> 0:45:58.440
<v Speaker 13>the integrity, transparency, and dedication to serving the public that all.

0:45:58.320 --> 0:45:59.440
<v Speaker 1>New Yorkers deserve.

0:46:00.880 --> 0:46:01.440
<v Speaker 9>Instead.

0:46:02.360 --> 0:46:07.120
<v Speaker 13>The indictment, unsealed today, alleges that Mayor Adams abused his

0:46:07.280 --> 0:46:11.320
<v Speaker 13>power and position for nearly a decade as Brooklyn Borough

0:46:11.360 --> 0:46:16.759
<v Speaker 13>President and as mayor to enrich himself and his mayoral campaigns.

0:46:17.719 --> 0:46:24.400
<v Speaker 13>As charged, he sought and received illegal campaign contributions, luxury travel,

0:46:25.280 --> 0:46:29.279
<v Speaker 13>and other personal benefits from foreign nationals, as well as

0:46:29.360 --> 0:46:34.560
<v Speaker 13>individuals and businesses. He allegedly took steps to conceal those

0:46:34.640 --> 0:46:40.120
<v Speaker 13>illegal contributions and personal benefits, and involved city employees and

0:46:40.280 --> 0:46:45.759
<v Speaker 13>campaign staff in that concealment. As the indictment explains, this

0:46:45.880 --> 0:46:50.080
<v Speaker 13>kind of corruption has real costs to the city and

0:46:50.160 --> 0:46:54.640
<v Speaker 13>to the public. As alleged, the mayor's twenty twenty one

0:46:54.719 --> 0:47:00.480
<v Speaker 13>campaign falsely certified compliance with campaign finance laws in order

0:47:00.520 --> 0:47:04.640
<v Speaker 13>to conceal those illegal campaign contributions, and as a result

0:47:04.680 --> 0:47:09.160
<v Speaker 13>of those false certifications, received over ten million dollars.

0:47:08.680 --> 0:47:10.240
<v Speaker 1>In public matching funds.

0:47:11.760 --> 0:47:16.440
<v Speaker 13>The Mayor's alleged acceptance and concealment of illegal contributions and

0:47:16.520 --> 0:47:24.360
<v Speaker 13>personal benefits gave overseas benefactors, wealthy individuals and businesses undue

0:47:24.440 --> 0:47:28.760
<v Speaker 13>influence over the mayor, influence that federal and local laws

0:47:29.000 --> 0:47:34.360
<v Speaker 13>seek to prevent, and as charged in exchange for certain

0:47:34.400 --> 0:47:37.919
<v Speaker 13>personal benefits, the mayor pressured the New York City Fire

0:47:37.960 --> 0:47:42.839
<v Speaker 13>Department to forego a required fire safety inspection before the

0:47:42.880 --> 0:47:47.920
<v Speaker 13>opening of the new Turkish Consulate building. As the city's

0:47:47.960 --> 0:47:53.560
<v Speaker 13>inspector General, the Department of Investigation, a city agency, conducts

0:47:53.600 --> 0:48:00.040
<v Speaker 13>its investigations confidentially and wholly independent of city Hall. He

0:48:00.120 --> 0:48:04.160
<v Speaker 13>handled this investigation as we would any other, following the

0:48:04.200 --> 0:48:08.120
<v Speaker 13>facts and seeking to hold wrongdoers accountable, no matter their

0:48:08.239 --> 0:48:12.600
<v Speaker 13>role or title. Our unique access to city records and

0:48:12.719 --> 0:48:16.680
<v Speaker 13>expertise in matters of city government make us a critical point.

0:48:16.760 --> 0:48:19.800
<v Speaker 2>We've been listening to Damian Williams, the US Attorney in

0:48:19.840 --> 0:48:22.120
<v Speaker 2>Manhattan for the Southern Districts of New York. On your

0:48:22.160 --> 0:48:25.120
<v Speaker 2>screen is Jocelyn Strauber, the New York Director of the

0:48:25.160 --> 0:48:30.160
<v Speaker 2>Investigations Commission, alongside James Denahey, who's the Assistant Director in

0:48:30.239 --> 0:48:32.480
<v Speaker 2>charge of the New York Field Office of the FBI,

0:48:32.840 --> 0:48:35.960
<v Speaker 2>and they have been discussing the indictment charges of fraud

0:48:35.960 --> 0:48:39.080
<v Speaker 2>of bribery against New York City Mayor Eric Adams. Bloomberg's

0:48:39.120 --> 0:48:43.359
<v Speaker 2>David Gura has been tracking the press conference. They've explained

0:48:43.520 --> 0:48:45.080
<v Speaker 2>the charges, David, Yeah, and.

0:48:45.040 --> 0:48:47.160
<v Speaker 11>I noted that each of them emphasized the fact that

0:48:47.200 --> 0:48:48.840
<v Speaker 11>while this is the first time a sitting mayor of

0:48:48.840 --> 0:48:51.080
<v Speaker 11>New York City has been indicted, that didn't color the

0:48:51.080 --> 0:48:53.080
<v Speaker 11>way that they approached this particular case and what they've

0:48:53.080 --> 0:48:53.600
<v Speaker 11>alleged here.

0:48:53.640 --> 0:48:54.680
<v Speaker 9>So just to sort of tick.

0:48:54.520 --> 0:48:57.120
<v Speaker 11>Through what we've learned over the course of this press conference,

0:48:57.160 --> 0:49:00.160
<v Speaker 11>and also from that indictment itself, we see the mayor

0:49:00.360 --> 0:49:03.239
<v Speaker 11>having played fast and loose with campaign finance laws. Yes,

0:49:03.280 --> 0:49:05.800
<v Speaker 11>well he's been the mayor, but also before that, Damian Williams,

0:49:05.840 --> 0:49:08.319
<v Speaker 11>the US Attorney for the Southern District, stressing this goes

0:49:08.360 --> 0:49:11.319
<v Speaker 11>back to this time as the Brooklyn Borough President before

0:49:11.320 --> 0:49:13.200
<v Speaker 11>he became the mayor. And really what this centers on

0:49:13.239 --> 0:49:15.520
<v Speaker 11>are these kind of straw donations. So what you were

0:49:15.520 --> 0:49:17.880
<v Speaker 11>hearing there just a moment ago, is how this played

0:49:17.880 --> 0:49:19.920
<v Speaker 11>out in New York City. There is something here where

0:49:20.040 --> 0:49:22.520
<v Speaker 11>if you or I or someone else gave money to

0:49:22.560 --> 0:49:24.600
<v Speaker 11>a candidate, that would be matched by the city by

0:49:24.680 --> 0:49:27.000
<v Speaker 11>eight to one ratio. So your dollar is worth eight

0:49:27.239 --> 0:49:30.520
<v Speaker 11>and that's to encourage more small dollar dollar donations in

0:49:30.560 --> 0:49:33.239
<v Speaker 11>our elections here. Effectively, what they're alleging is is that

0:49:33.360 --> 0:49:36.319
<v Speaker 11>Eric Adams was taking big contributions from both corporations and

0:49:36.360 --> 0:49:39.320
<v Speaker 11>the Turkish government, putting them through that matching program and

0:49:39.360 --> 0:49:40.839
<v Speaker 11>getting a lot more money as a result. And then

0:49:40.840 --> 0:49:43.880
<v Speaker 11>there is the more salacious counts of how he exploited

0:49:43.880 --> 0:49:47.160
<v Speaker 11>his relationship with Turkish officials, both private and public, to

0:49:47.200 --> 0:49:49.000
<v Speaker 11>get a whole lot of luxury travel. And we can

0:49:49.000 --> 0:49:50.600
<v Speaker 11>talk more about this d but what stood out to

0:49:50.640 --> 0:49:53.879
<v Speaker 11>me is just how much he used is teanbul as

0:49:53.880 --> 0:49:56.120
<v Speaker 11>a conduits to sort of fly through go through on

0:49:56.160 --> 0:49:59.480
<v Speaker 11>these trips abroad, and as Damian Williams there, the prosecutor said,

0:50:00.160 --> 0:50:02.520
<v Speaker 11>got really tens of thousands of dollars worth of benefits

0:50:02.760 --> 0:50:05.200
<v Speaker 11>luxurious travel benefit as a result of those relationships.

0:50:05.840 --> 0:50:08.600
<v Speaker 2>We have sixty seconds in the program, but before the presser,

0:50:08.719 --> 0:50:10.160
<v Speaker 2>Mayor Eric Adams did speak.

0:50:10.239 --> 0:50:10.959
<v Speaker 3>What did he say.

0:50:11.680 --> 0:50:14.120
<v Speaker 11>He denied his allegations so they were based on lies,

0:50:14.160 --> 0:50:15.960
<v Speaker 11>and vowed to fight them. And you've pointed out here

0:50:16.000 --> 0:50:19.920
<v Speaker 11>that he's hired some very high profile council Alex Spiro rather,

0:50:19.960 --> 0:50:22.480
<v Speaker 11>who represents Elon Musk, has represented him in a lot

0:50:22.520 --> 0:50:25.279
<v Speaker 11>of matters, is going to be representing here as well.

0:50:25.280 --> 0:50:27.440
<v Speaker 11>He is adamant, the mayor is adamant he can continue

0:50:27.440 --> 0:50:28.800
<v Speaker 11>in that job as he fights.

0:50:28.800 --> 0:50:29.840
<v Speaker 9>Aliva said, We'll see.

0:50:29.640 --> 0:50:32.200
<v Speaker 11>How that plays out and how the democratic establishment in

0:50:32.239 --> 0:50:34.279
<v Speaker 11>the city and the state responds to what we've learned

0:50:34.320 --> 0:50:34.720
<v Speaker 11>this morning.

0:50:35.520 --> 0:50:38.520
<v Speaker 2>Yeah, what some of you said, they're interesting on Alex Spiro,

0:50:38.640 --> 0:50:41.080
<v Speaker 2>that is an attorney that Elon Musk has used regularly

0:50:41.760 --> 0:50:45.040
<v Speaker 2>in all sorts of litigation. Mayor Eric Adams has turned

0:50:45.080 --> 0:50:48.120
<v Speaker 2>to him on this occasion, bloom makes.

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<v Speaker 3>David Gura, thank you. We will stick with this story.

0:50:51.000 --> 0:50:54.239
<v Speaker 2>More on the investigation and any market moves behind it

0:50:54.280 --> 0:50:58.360
<v Speaker 2>throughout the day here on Bloomberg Television. New York Mayorrick

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<v Speaker 2>Adams indicted on fraud and bribery charges.

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<v Speaker 3>This is Bloomberg