WEBVTT - Tesla's Investor Day and Coinbase vs. the SEC 0:00:13.720 --> 0:00:16.480 I'm Caroline Hyde of Bloomberg's world side quarters in New York, 0:00:16.880 --> 0:00:19.560 and I made Ludlow in San Francisco. This is Bloomberg 0:00:19.560 --> 0:00:22.520 Technology coming up, Tesla invested dat it kicks off and 0:00:22.560 --> 0:00:25.040 we bring you everything you need to know from Elo 0:00:25.120 --> 0:00:28.520 Musk's big event. And we'll bring you a conversation with 0:00:28.600 --> 0:00:32.160 the CEO of coin Base amid a broad regulatory crackdown 0:00:32.400 --> 0:00:36.360 on that industry. Is the seci is the company's staking product. 0:00:36.600 --> 0:00:40.640 Plus Capital g names Lala Sturdy as the new leader. 0:00:40.720 --> 0:00:43.080 We sit down with her to discuss the new role 0:00:43.120 --> 0:00:46.320 as the head of Google's growth investment fund. All that 0:00:46.560 --> 0:00:48.760 so much more coming up, but from private markets to 0:00:48.800 --> 0:00:51.080 public we check in on what was a slightly dour 0:00:51.159 --> 0:00:53.840 mood and the overall equity benchmark NASA one hundred off 0:00:53.840 --> 0:00:56.400 by nine tenths a percent. Worries about inflation, some of 0:00:56.400 --> 0:00:58.720 that manufacturing data here in the US showing that prices 0:00:58.920 --> 0:01:01.360 are still rising further than the federals ever want to see. 0:01:01.360 --> 0:01:04.520 The tenure yield therefore pushes higher boring costs rise. Tech 0:01:04.560 --> 0:01:07.319 falls off. Interesting that at China managed to actually have 0:01:07.360 --> 0:01:09.839 a pretty strong day. I'm looking at the Golden Dragon 0:01:09.880 --> 0:01:12.639 at China Index, so we're up three percent. The reason 0:01:12.840 --> 0:01:15.880 is actually their manufacturing data came in stronger than anticipated. 0:01:15.959 --> 0:01:18.640 This is why perhaps we're seeing a weekly US dollar 0:01:18.680 --> 0:01:20.160 flick it on. I want to see what crypto is 0:01:20.160 --> 0:01:22.759 doing versus US dollar because actually managing to hold its 0:01:22.760 --> 0:01:24.720 head above the water, up seven tenth percent over the 0:01:24.760 --> 0:01:27.480 last two days, even though the risk of risk assets 0:01:27.520 --> 0:01:30.600 have been selling off head YEP and from the macros 0:01:30.600 --> 0:01:33.240 to the micro we get straight to earning season salesforce 0:01:33.240 --> 0:01:35.279 frankly knocking it out the park. You see the shares 0:01:35.360 --> 0:01:38.320 up more than fourteen percent in after hours. There's given 0:01:38.400 --> 0:01:41.240 us a four year twenty four outlook for both revenue 0:01:41.240 --> 0:01:44.600 and EPs pretty significantly above expectations, and in the near 0:01:44.720 --> 0:01:47.960 term looking at the fiscal first quarter, also looking at 0:01:48.000 --> 0:01:50.960 revenue n EPs above expectations. We had a little bit 0:01:50.960 --> 0:01:54.120 of reaction from sell side stating that this is evident 0:01:54.400 --> 0:01:56.800 this is a company now more focused on profit. The 0:01:56.880 --> 0:01:59.040 cause about to get underway. Will give you those headlines 0:01:59.160 --> 0:02:02.120 as they come stock we have to pay close attention 0:02:02.160 --> 0:02:05.440 to is Tesla Tesla's holding its invest to day out 0:02:05.440 --> 0:02:07.960 in Austin after hours, we kind of modestly lower down 0:02:08.000 --> 0:02:10.359 three tenths of one percent. There is no one big 0:02:10.400 --> 0:02:14.519 headline to speak of yet, but they've teased two new 0:02:14.560 --> 0:02:17.040 evs in the works. They're covered in blankets on the screen, 0:02:17.080 --> 0:02:20.040 you know how Elon Musk does it, but also outlining 0:02:20.040 --> 0:02:23.360 what is a very clear path to a sustainable future. 0:02:23.400 --> 0:02:27.160 Bloomberg Shaun Okaine covers Tesla for us and is in Austin. Sean, 0:02:27.200 --> 0:02:30.920 what have we learned so far? Well, we've gotten a 0:02:30.960 --> 0:02:34.720 pretty big, high level picture from Elon Musk and Tesla's 0:02:34.880 --> 0:02:38.760 SVP Drew Baglino about the macroview they have of how 0:02:38.840 --> 0:02:42.079 they think we could shift the entire economy to a 0:02:42.160 --> 0:02:45.359 sustainable economy, sustainable energy economy. They've said that they're going 0:02:45.400 --> 0:02:47.160 to be releasing a white paper. They went through a 0:02:47.160 --> 0:02:50.400 whole bunch of big, impressive numbers, but we're only just 0:02:50.600 --> 0:02:52.360 now starting to get into what that's going to mean 0:02:52.360 --> 0:02:54.600 for Tesla as a company. So we have a couple 0:02:54.600 --> 0:02:57.359 of different executives on stage who are maybe hopefully going 0:02:57.400 --> 0:02:59.040 to talk about some new products in the next couple 0:02:59.080 --> 0:03:01.920 of minutes. Talk to us about the context here of 0:03:01.960 --> 0:03:05.480 a third master plan. Because you've written so eloquently before, 0:03:05.520 --> 0:03:08.359 Sean that well, the Second master Plan hasn't exactly been 0:03:08.440 --> 0:03:12.119 enacted yet. Yeah. I mean this is the thing that 0:03:12.360 --> 0:03:15.399 Elon Musk likes to do. It's a way of guiding 0:03:15.639 --> 0:03:19.080 investors and potential investors on where they're headed. Why he 0:03:19.120 --> 0:03:21.799 thinks that the company could be worth twice what Saudi 0:03:21.880 --> 0:03:25.160 r Emco is worth. So you know, they haven't finished 0:03:25.160 --> 0:03:27.600 executing on all of the ideas and the second master 0:03:27.639 --> 0:03:30.560 Plan from twenty sixteen, and this is a way of 0:03:30.680 --> 0:03:33.520 him sort of pushing those concerns aside about you know, 0:03:33.880 --> 0:03:37.240 execution worries and saying, hey, there's a much bigger picture here. 0:03:37.520 --> 0:03:40.120 We're trying to solve or contribute to solving something much 0:03:40.120 --> 0:03:42.560 bigger than just for what a company can do, and 0:03:42.680 --> 0:03:45.320 here's how we think other people can do it. There 0:03:45.360 --> 0:03:47.240 was also an emphasis on what it's going to take 0:03:47.360 --> 0:03:50.040 to get Tesla to its ultimate goal, and it was 0:03:50.080 --> 0:03:54.200 interesting that Drew Baglino went pretty early on to mining 0:03:54.480 --> 0:03:56.840 and access to raw materials. I think the line was 0:03:56.920 --> 0:03:59.960 that they're getting to require less mining in an electrified 0:04:00.040 --> 0:04:03.240 economy then we currently have in today's economy. What kind 0:04:03.240 --> 0:04:05.640 of things are we watching out for, What redheadlines can 0:04:05.640 --> 0:04:07.680 we expect across the Bloomberg if all goes to plan. 0:04:09.080 --> 0:04:11.880 I mean, we know from our own reporting that they've 0:04:11.920 --> 0:04:15.640 been in talks to possibly acquire certain lithium miners. They 0:04:15.880 --> 0:04:19.200 have been working on potentially building a lithium refinery, either 0:04:19.279 --> 0:04:21.360 here in Texas or maybe other sites in the United States. 0:04:21.400 --> 0:04:23.880 It's still not abundantly clear what their plan is at 0:04:23.880 --> 0:04:25.840 the moment with that, but they are looking at trying 0:04:25.880 --> 0:04:28.560 to get further down the supply chain. So if they're 0:04:28.560 --> 0:04:30.400 willing to talk about some of that stuff today in 0:04:30.400 --> 0:04:33.039 any kind of specifics, then that would be some pretty 0:04:33.040 --> 0:04:35.400 big news as far as how much they're willing to 0:04:35.440 --> 0:04:40.359 stake themselves in this economy. We've had some executives outlining well, 0:04:40.560 --> 0:04:42.760 the talk about the battle skills they've had for a 0:04:42.839 --> 0:04:45.919 Model three, the famous production hell that they had around that, 0:04:46.040 --> 0:04:48.839 and of course about that the cybertruck is coming this year, 0:04:48.920 --> 0:04:52.480 so they have shown the production capabilities. What many want 0:04:52.480 --> 0:04:56.000 to see, though, Sean, particularly this time, is their cost cutting. Well, 0:04:56.080 --> 0:04:59.000 their price cutting for some cars is a cheaper model 0:04:59.279 --> 0:05:02.600 in and of itself, right, Yeah, I mean, I think 0:05:02.640 --> 0:05:04.440 I would imagine part of the argument they're going to 0:05:04.480 --> 0:05:06.880 make is that whatever this new vehicle or this new 0:05:06.960 --> 0:05:10.520 vehicle platform entails. It's going to be folding in all 0:05:10.520 --> 0:05:12.800 of these things that they've developed over the years that 0:05:12.839 --> 0:05:14.599 they've been building the Model three and the Model Why 0:05:14.680 --> 0:05:17.800 these sort of efficiencies that they've bolted onto the ideas 0:05:18.320 --> 0:05:20.760 as they were being put out into the world, like 0:05:21.240 --> 0:05:24.000 casting giant pieces for the Model Y and putting them 0:05:24.040 --> 0:05:25.960 together as opposed to use the hundreds of pieces that 0:05:26.000 --> 0:05:28.760 were bolted together like a lot of regular automakers, and 0:05:29.040 --> 0:05:31.599 so being able to take some of those learnings from 0:05:31.800 --> 0:05:34.599 those programs, those vehicle programs, and do it from the 0:05:34.640 --> 0:05:37.200 ground up on a new vehicle platform, I would bet 0:05:37.320 --> 0:05:38.960 is going to be a big portion of why they 0:05:38.960 --> 0:05:41.440 think they can drive those costs down without losing too 0:05:41.520 --> 0:05:44.520 much of their margin. And especially scale. I mean, this 0:05:44.600 --> 0:05:46.279 is all going to be about scale, not just on 0:05:46.360 --> 0:05:48.920 the energy side of things, but how many vehicles they 0:05:48.920 --> 0:05:51.200 can make in the coming years. And if they're going 0:05:51.240 --> 0:05:53.240 to be building a much cheaper car, they're going to 0:05:53.320 --> 0:05:54.840 need a much bigger scale to be able to keep 0:05:54.880 --> 0:05:58.160 those margins up. Sean so great to get the context 0:05:58.160 --> 0:06:01.440 for me. Thank you, Sean o'caine. Let's take even deeper 0:06:01.520 --> 0:06:04.080 the Wesley Group Managing partner Steve Wesley is with us now. 0:06:04.080 --> 0:06:05.680 The reason is so important because he was on the 0:06:05.680 --> 0:06:09.440 Tesla board when Elon must debuted the company's initial master plan, 0:06:09.960 --> 0:06:12.120 and therefore it is so great to get your insights. 0:06:12.320 --> 0:06:15.200 We will also have plenty of time thinking about energy 0:06:15.320 --> 0:06:18.839 and efficiency from the government level as well, when we 0:06:18.839 --> 0:06:21.800 look at the master plan for sustainable energy economy. How 0:06:21.880 --> 0:06:23.440 much do you think that we have to take Elon 0:06:23.520 --> 0:06:27.360 Musk at his word here? Well, well, look he's our 0:06:27.440 --> 0:06:30.600 eline as a tendency to or over a promise a bit. 0:06:30.920 --> 0:06:33.560 But here's why this is a big deal. Today every 0:06:33.839 --> 0:06:37.279 auto company in the world is going all electric, and 0:06:37.320 --> 0:06:41.320 the reason is simple. They're safer, they're lower maintenance, they're faster, 0:06:41.440 --> 0:06:44.400 we're fun to drive, and they're greener. There's only been 0:06:44.600 --> 0:06:47.640 one big head with and that's been cost, and Tesla 0:06:48.320 --> 0:06:50.599 is about to change that. So today I think you're 0:06:50.640 --> 0:06:55.240 hearing them announced a dramatic reduction in manufacturing costs. Again, 0:06:55.279 --> 0:06:59.520 that comes down to lower battery costs, mature stamping machines, tools. 0:06:59.520 --> 0:07:02.520 They can produced cars more quickly with fewer parts than ever. 0:07:02.960 --> 0:07:07.160 SI's alluded to more robots so on all this leads 0:07:07.480 --> 0:07:10.320 to lower costs. I believe what's going to happen is 0:07:10.360 --> 0:07:12.600 going to be dramatic, and that is I think Tesla's 0:07:12.640 --> 0:07:16.400 going to trigger a global price for and it's going 0:07:16.480 --> 0:07:20.280 to rate for consumers deadly for some of the competition, 0:07:20.480 --> 0:07:23.880 or people don't quite understand yet about Tesla is the 0:07:24.000 --> 0:07:26.480 Tesla's already making cars in one third at the time 0:07:26.520 --> 0:07:29.640 of Volsaga as ten hours versus thirty hours. By using 0:07:29.720 --> 0:07:33.800 the battering techniques, this enables them to make over fifteen 0:07:34.000 --> 0:07:37.800 thousand dollars in profit per car. That's twice with Volsagun 0:07:37.920 --> 0:07:41.400 makes yeah, three times toilet it makes five times with 0:07:41.560 --> 0:07:44.400 ford maas to Tesla's the only company with the room 0:07:44.440 --> 0:07:48.040 to draw prices. It's going to create major consolidation industry. 0:07:48.040 --> 0:07:53.520 I rate news for the consumer competitors. See how low 0:07:53.560 --> 0:07:56.840 can they go when you think of a cheap auto, 0:07:56.960 --> 0:07:59.320 when you think of what price point they could unveil, 0:07:59.600 --> 0:08:04.080 How I couldn't that be for Tessa's own margins. Well, 0:08:04.080 --> 0:08:06.560 look again, they've got quite a ways to go, but 0:08:06.680 --> 0:08:08.920 they're leading the world in batteries. There's you know, batteries 0:08:08.960 --> 0:08:10.880 are roughly a third of the cost for their vehicle. 0:08:11.160 --> 0:08:13.840 They're also way ahead of the others what's called over 0:08:13.960 --> 0:08:19.320 the air software in this new next gen robotization of manufacturing, 0:08:19.640 --> 0:08:23.760 bigger stamping, fewer pieces, faster production. This all gives them 0:08:23.760 --> 0:08:25.800 an hedge. And the simple fact is they're about three 0:08:25.920 --> 0:08:29.760 years ahead of everybody else terms of manufacturing. Gm Ford 0:08:30.040 --> 0:08:32.720 trying to build a new plant here or there. Justice 0:08:32.760 --> 0:08:36.199 got five plants up and running today, six just announced 0:08:36.240 --> 0:08:40.679 in Mexico. They have not only established themselves it is 0:08:40.679 --> 0:08:43.720 the fastest powering auto company in the world fifty percent 0:08:43.800 --> 0:08:48.959 growth last year, but the most profitable. What's not to 0:08:49.080 --> 0:08:53.480 like about that? Shares down about a percentage point now 0:08:53.840 --> 0:08:55.760 in off their eyes trading Steve, you may have seen 0:08:55.760 --> 0:08:59.760 my reporting last week that Russ gub had suspended his 0:09:00.400 --> 0:09:04.040 attempts to gain a board seat in part because Tesla 0:09:04.120 --> 0:09:07.160 had moved to allay some of his fears. I'm looking 0:09:07.200 --> 0:09:10.319 at the speakers so far, Zach kirk on CFO opened 0:09:10.360 --> 0:09:13.560 up the show. Elon did speak, but so did Drew Bagnino, 0:09:13.720 --> 0:09:16.400 Franz von the Wholhausen and now Lars more of a 0:09:16.520 --> 0:09:18.679 How much do you think this is them trying to 0:09:18.720 --> 0:09:21.959 demonstrate that there is a plan outside of Elon musk 0:09:22.000 --> 0:09:26.160 a succession plan. I think the message is loud and clear. 0:09:26.679 --> 0:09:29.160 You don't invest in Tesla just because of Elon. You 0:09:29.280 --> 0:09:33.079 invest because it is the leading EV company and what 0:09:33.280 --> 0:09:35.640 is an EV world? And again, just look at the 0:09:35.640 --> 0:09:38.520 fast everybody else one or two EV plants up and running. 0:09:38.720 --> 0:09:42.319 Tesla's got five heading to six. Nobody else has the 0:09:42.400 --> 0:09:45.360 capacity to grow like Tesla will this year. No other 0:09:45.400 --> 0:09:47.920 auto company in the world is coming close to fifty 0:09:47.960 --> 0:09:52.080 percent growth, add to the highest level of profitability. This 0:09:52.280 --> 0:09:55.360 is a tough story to be Now, there's one other 0:09:55.360 --> 0:09:58.000 story that almost nobody has talked about today you're going 0:09:58.040 --> 0:10:00.880 to hear Elon and the Tesla Group address, and that 0:10:01.160 --> 0:10:05.480 is they're no longer just an auto company. They're an 0:10:05.520 --> 0:10:09.120 auto and an energy company. And what they have to 0:10:09.160 --> 0:10:13.840 sell is powerful, and that is Tesla and Tesla alone 0:10:13.920 --> 0:10:17.320 can sell you the electric car, solar panels for the roof, 0:10:17.840 --> 0:10:21.040 powerwall for your home. They can help you create a 0:10:21.040 --> 0:10:24.439 world where you'll never have to pit Hold on, Steve, 0:10:24.520 --> 0:10:27.960 hold on, hold on, because, as Caroline pointed out earlier, 0:10:28.320 --> 0:10:30.559 a lot of this was in master Plan Part one 0:10:30.600 --> 0:10:33.960 and two, and much of that seems unfinished. That's why 0:10:33.960 --> 0:10:35.520 we are should we take some of this with a 0:10:35.520 --> 0:10:37.959 grain of salt, because we might not see it materialize 0:10:38.000 --> 0:10:42.480 for another decade. If that you're seeing it materialized now. 0:10:42.520 --> 0:10:45.720 And look, I'm not going to tell you Elon doesn't 0:10:46.200 --> 0:10:50.320 keeps the over promise that Livery does. But even when 0:10:50.320 --> 0:10:53.040 he finally gets there where they heck hand of the competition. 0:10:53.480 --> 0:10:56.720 So they've already offering ex turnkey solution around the country 0:10:56.880 --> 0:11:00.800 energy realities from going up now producing mega packs. This 0:11:01.000 --> 0:11:06.240 is one point five mego stords to university's, large corporations, hospitals. 0:11:06.480 --> 0:11:08.960 It's all rolling out now. But I think the big 0:11:09.000 --> 0:11:13.160 picture today is going to be Tesla is creating an ecosystem. 0:11:13.280 --> 0:11:16.200 It's more than an auto company, but it's pretty darned 0:11:16.200 --> 0:11:19.120 fast an auto company as it is, and the extent 0:11:19.160 --> 0:11:22.240 they can cut costs while they go mobile with a 0:11:22.240 --> 0:11:26.160 pretty good product. Two is that's a hard story. Well 0:11:26.200 --> 0:11:31.240 so difficult supply chain here time and time again. How 0:11:31.400 --> 0:11:35.240 will the movement be hindered by access to lithium to 0:11:35.320 --> 0:11:38.920 cobal takoppa. You know, I think that story has been 0:11:39.480 --> 0:11:42.600 really overreported. And get four or five years ago we 0:11:42.640 --> 0:11:45.880 all heard it by my lithium mind now, or you've 0:11:45.920 --> 0:11:48.280 got to go to mongolium. They're the only people wolved 0:11:48.360 --> 0:11:51.480 with rare earth minerals. This turned out not to be 0:11:51.520 --> 0:11:54.800 the case. Two quick points. One, lithium is actually one 0:11:54.800 --> 0:11:58.480 of the most plentiful minerals on the planet. They're lithium 0:11:58.480 --> 0:12:01.800 minds all over California in the western half of the US. 0:12:01.880 --> 0:12:04.480 You nunited need to over the via or mon and 0:12:04.559 --> 0:12:06.720 the minds were opening up now in a response to 0:12:06.760 --> 0:12:10.040 wise the prices. Second, it was those weird earth minerals 0:12:10.080 --> 0:12:13.600 like cobalt, manganese, nickel, that we're going to be tough 0:12:13.679 --> 0:12:15.120 to get to. You can only find them in the 0:12:15.160 --> 0:12:18.560 congo now. So prices peaked for a little bit. You're 0:12:18.559 --> 0:12:22.840 now seeing cobalt particular, lowest prices we've seen in some time. 0:12:23.200 --> 0:12:26.440 So the market is responding. Elon and the Tesla team 0:12:26.480 --> 0:12:30.040 were fairly stright to integrate earlier than the others. I 0:12:30.080 --> 0:12:33.480 think it's give them an edge. Yeah. Sources told me 0:12:33.520 --> 0:12:35.880 that actually they're looking at a number of mining options 0:12:35.920 --> 0:12:38.320 and weighing up what's best for them. The stocks are 0:12:38.480 --> 0:12:41.400 more than sixty percent year today. We asked our audience 0:12:41.840 --> 0:12:44.679 if this event right now is going to act as 0:12:44.679 --> 0:12:48.079 a catalyst for the stock. The audience relatively split right, 0:12:48.160 --> 0:12:49.760 some say yes because of what this is going to 0:12:49.760 --> 0:12:52.480 be announced. Some of others, disagreeing, say no, this is 0:12:52.520 --> 0:12:55.200 a sell the news event. To your mind, based on 0:12:55.240 --> 0:12:57.760 how much you've heard, how high is the bar here 0:12:58.000 --> 0:13:02.200 for Tesla to prove the big things coming? Well? Look, 0:13:02.600 --> 0:13:05.120 last year was a bad year for Tesla. He was 0:13:05.160 --> 0:13:08.720 caught up in headlines about Twitter. He personally sold forty 0:13:08.840 --> 0:13:11.640 billion dollars with the shares mind modeling number that push 0:13:11.679 --> 0:13:15.400 the shared bries down. When it comes to smart investing, 0:13:16.280 --> 0:13:19.440 look at the boring stuff like the numbers fifty percent 0:13:19.440 --> 0:13:22.920 growth twenty twenty one, twenty twenty twenty two. They're going 0:13:23.000 --> 0:13:26.640 to do the same thing this year, huge profitability, and 0:13:26.760 --> 0:13:30.600 the really boring part is inside the factories that most 0:13:30.600 --> 0:13:33.880 people can't see. You're going to hear again and again 0:13:34.040 --> 0:13:38.720 about state of the art manufacturing improvements, costs down curves 0:13:38.720 --> 0:13:41.720 that the incumbents for some reason haven't figured out. And 0:13:41.880 --> 0:13:44.520 don't take my word for it. Just look at the 0:13:44.559 --> 0:13:49.400 average profitability per vehicle and they've got an edge, and 0:13:49.440 --> 0:13:51.600 I think they're going to be useless in pursuing it. 0:13:51.880 --> 0:13:55.480 They've just taken prices down roughly fifteen percent. If they 0:13:55.520 --> 0:13:59.400 take them down another fifteen percent, that is awfully hard 0:13:59.480 --> 0:14:06.559 for the other right. Wesley Group managing partner Steve Wesley, 0:14:06.600 --> 0:14:09.400 of course on Tessa's board back two thousand and seven 0:14:09.400 --> 0:14:12.120 when Elon Musk was getting Master Plan Part one off 0:14:12.120 --> 0:14:14.840 the ground. And here we are at Master Plan Part three. 0:14:14.840 --> 0:14:26.280 We'll see how it goes. M The Chip Giant Banks 0:14:26.360 --> 0:14:29.680 Bicoft Bank will pause plans for a London Stock Exchange 0:14:29.720 --> 0:14:33.440 listing and focus solely on an IPO in New York. 0:14:33.520 --> 0:14:38.120 This according to Bloomberg sources. Bloomberg's Crystals joins us Now Chrystal, 0:14:38.200 --> 0:14:41.000 what is the thinking behind this? Yeah, So, as we know, 0:14:41.320 --> 0:14:44.560 ARM is based in England and it's one of the 0:14:44.600 --> 0:14:47.480 crown jewel of the European tech scene. So it was 0:14:47.480 --> 0:14:50.440 actually a really big loss for the London Stock Exchange, 0:14:50.440 --> 0:14:55.200 for London as a whole. So we've always known that 0:14:55.240 --> 0:14:57.640 the plan is to have a primary listing in New 0:14:57.720 --> 0:15:00.600 York and perhaps to a secondary listing and London, And 0:15:00.680 --> 0:15:02.720 now the thinking has kind of shift and they will 0:15:02.720 --> 0:15:06.120 focus solely on a New York listing for the deeper investor, 0:15:06.160 --> 0:15:09.200 poor and high evaluation, and that's always been the appeal 0:15:09.240 --> 0:15:13.920 of the New York venue and obviously huge loss for London. 0:15:14.040 --> 0:15:16.920 And I'm sure they will have even more lobbying effort 0:15:16.960 --> 0:15:18.840 to try to get them back. I mean, mushisunac, the 0:15:18.920 --> 0:15:21.440 Prime Minister has already been involved, so no much not 0:15:21.480 --> 0:15:23.640 sure how much harder lobbying they can get for this. 0:15:23.880 --> 0:15:27.040 What is a Cambridge based business when you say it's 0:15:27.040 --> 0:15:29.640 going to hire evaluation who in the US? For what reason? 0:15:29.720 --> 0:15:32.720 Why would a deeper market more investors automatically mean that 0:15:32.760 --> 0:15:35.120 they would value the company differently. So first of all, 0:15:35.160 --> 0:15:37.880 you can look at the peers. There are just more 0:15:37.960 --> 0:15:41.040 companies of this same background, of the same market, of 0:15:41.080 --> 0:15:43.560 the same scale listed in New York. And if you 0:15:43.640 --> 0:15:48.200 look at overall market liquidity, you just have more investors 0:15:48.240 --> 0:15:51.640 that have a US pocket and they have more leeway 0:15:51.720 --> 0:15:54.600 to invest in US list a company and as a result, 0:15:54.600 --> 0:15:57.280 you just generate a little bit more interest. That said, 0:15:57.320 --> 0:16:01.320 a lot of most of this is still theoretical. There's 0:16:01.360 --> 0:16:03.880 no IPO market right now. We were talking about how 0:16:04.320 --> 0:16:06.280 it could be another couple of months, a couple of 0:16:06.320 --> 0:16:09.600 weeks until things comes back so whatever this is, it 0:16:09.640 --> 0:16:12.600 will hold off and we will not know the actual valuation, 0:16:12.640 --> 0:16:15.120 but they're aiming for at least sixty billion, which is 0:16:15.120 --> 0:16:17.480 a very very big number compared to wear SoftBank got it. 0:16:19.360 --> 0:16:22.800 What's interesting about the reporting here is that London tried 0:16:23.040 --> 0:16:27.320 very hard to win this business and ultimately they weren't successful. 0:16:27.360 --> 0:16:29.680 But what do we know about those efforts. Yeah, like 0:16:30.200 --> 0:16:33.840 Caroline said, Sooner personally actually try to pitch a company, 0:16:33.880 --> 0:16:37.040 and as we know he was a former Goldman person 0:16:37.080 --> 0:16:40.240 and Goldman was on the listing, so it wouldn't be 0:16:40.320 --> 0:16:43.960 surprising if he went to his own firm TAPESO colleagues. Also, 0:16:44.040 --> 0:16:47.320 the London Stock Exchange Chief executive officer had very publicly 0:16:47.360 --> 0:16:49.800 said that they have worked very very hard and they 0:16:49.840 --> 0:16:52.160 want to they want the energy, they want to win 0:16:52.240 --> 0:16:54.920 this deal and they would say young sextapp say hungry 0:16:55.120 --> 0:16:58.360 to when the arm listening and more technology listing hopefully 0:16:58.400 --> 0:17:00.960 would have come after, But so far it seems like 0:17:01.040 --> 0:17:04.560 it's not been a huge one. Is that any way 0:17:04.560 --> 0:17:07.399 that this is related to Brexit or anything like that, 0:17:07.520 --> 0:17:11.080 or is this purely a size of market situation So 0:17:11.119 --> 0:17:13.680 we haven't heard anything about that, but it wouldn't be 0:17:14.680 --> 0:17:17.400 you know, outrageous if Brexit was one of the consideration. 0:17:17.800 --> 0:17:21.760 It definitely limits investment coming into the UK, especially when 0:17:21.800 --> 0:17:25.800 you have investment professional having to real ocay into continential 0:17:25.840 --> 0:17:28.280 Europe and you just have a little bit more outflow 0:17:28.359 --> 0:17:33.280 and just just separate the markets more and overall again 0:17:33.320 --> 0:17:35.720 like comparing to New York, it's just not as deep 0:17:35.720 --> 0:17:38.280 a market, and it would make sense for them to 0:17:38.400 --> 0:17:40.800 focus on New York, which always has been the plan, 0:17:41.240 --> 0:17:45.240 but now they're just scrapping the secondary listening AH Corporates, 0:17:45.440 --> 0:17:49.440 Pretty nice, Crystalcy. Great to have a covering this potential 0:17:49.440 --> 0:17:51.919 IPO coming up at some point in the US at 0:17:51.960 --> 0:17:54.480 least coming up. Well, Athletes get in the VC game 0:17:54.520 --> 0:17:57.720 and Stripe is cutting its valuation. All this and more 0:17:57.800 --> 0:18:00.439 in the VC round up next d Yeah, and I 0:18:00.440 --> 0:18:02.520 want to get back to those shares of Salesforce and 0:18:02.600 --> 0:18:04.840 now for hours pushing even higher now actually we're up 0:18:04.880 --> 0:18:08.119 sixteen percent. Ny Off on the calls, saying that the 0:18:08.200 --> 0:18:11.720 company is completely fully disbanded its M and a committee. 0:18:11.840 --> 0:18:13.520 It looks like a big part of this story Caro 0:18:13.760 --> 0:18:17.040 is Salesforce doing what the activists investors wanted to hear 0:18:17.080 --> 0:18:20.280 which is focusing on profit with that big outlook for 0:18:20.359 --> 0:18:23.200 four year fiscal twenty four revenues going to be thirty 0:18:23.240 --> 0:18:25.800 four point five to thirty four point seven billion dollars 0:18:25.920 --> 0:18:28.399 in fiscal twenty four, way above what the street was 0:18:28.440 --> 0:18:30.720 looking for. That call underway, will continue to track it. 0:18:30.760 --> 0:19:06.840 This Spoonberg time now for our VC round up, and 0:19:06.960 --> 0:19:09.359 starting with Stripe, which has just cut its share price 0:19:09.440 --> 0:19:12.160 for its fundraising round, increasing its implied valuation by about 0:19:12.200 --> 0:19:14.560 ten percent to around fifty billion dollars. Now it's all 0:19:14.600 --> 0:19:17.320 according to the information it's citing to people familiar with 0:19:17.359 --> 0:19:20.399 the matter. The payment software company is now setting the 0:19:20.520 --> 0:19:23.560 per share price and around twenty dollars. That's down from 0:19:23.600 --> 0:19:27.959 twenty three a share previously. Meanwhile, Tennis icon Venus Williams's 0:19:28.000 --> 0:19:31.359 joining private equity firm Top Spin Consumer Partners to tackle 0:19:31.440 --> 0:19:34.680 health and wellness business investments. Now, the seven time Grand 0:19:34.720 --> 0:19:37.480 Slam title holder will take on the role of operating 0:19:37.520 --> 0:19:40.080 partner at the middle market investment shop. This is as 0:19:40.119 --> 0:19:43.639 of course, peas an industry scrappling with slowing economy, with 0:19:43.720 --> 0:19:48.320 tightening credit markets, and keeping with the athlete's theme baseball 0:19:48.400 --> 0:19:51.119 legend Alex Rodriguez, You knows a Rod and his business 0:19:51.160 --> 0:19:54.240 partner Mark Law have raised another twenty million dollars in 0:19:54.320 --> 0:19:56.639 their funding round for the new ticketing and fan experienced 0:19:56.640 --> 0:20:00.240 business Jump, bringing the total funding to thirty minu million 0:20:00.240 --> 0:20:02.560 dollars now. The round was led by four Run Adventures 0:20:02.600 --> 0:20:06.640 and joined by Courtside Adventures, Will Ventures and Mastery Ventures. 0:20:06.720 --> 0:20:10.119 Additional investors include Meta Lab and Drive By DraftKings. And 0:20:10.440 --> 0:20:12.040 you've got a key story. We've got to be witching 0:20:12.160 --> 0:20:14.639 in well the public markets, right, Yeah, we've got to 0:20:14.640 --> 0:20:16.760 get back to salesforce and what we've got coming up, 0:20:17.680 --> 0:20:21.040 because he only's calls ongoing real push higher in after 0:20:21.160 --> 0:20:24.080 hours in I think the focus right now for investors 0:20:24.200 --> 0:20:27.560 is Benioff's doing exactly what we asked him to focus 0:20:27.680 --> 0:20:30.640 on cost cuts, focused on profit, and that stock really 0:20:30.640 --> 0:20:33.840 pushing higher carrict Yeah, I mean more than fifteen percent 0:20:33.920 --> 0:20:36.520 jump on the higher side. Many really feeling that he's 0:20:36.520 --> 0:20:39.040 addressing the fears that many an activist investor put to 0:20:39.080 --> 0:20:41.200 it the fact that they might be still spending on MNA, 0:20:41.320 --> 0:20:43.720 the fact that they'd be worrying about, you know, the 0:20:43.800 --> 0:20:46.320 splurging the marketing spend. Of course, in many ways put 0:20:46.320 --> 0:20:48.600 Sam Francisco and all other hubs on the map. But 0:20:48.760 --> 0:20:52.880 ultimately this is appeasing the new narrative of this economy 0:20:52.920 --> 0:20:56.359 that it has to be profitability first, right, Think about Slack, 0:20:56.560 --> 0:20:59.639 think about MuleSoft. The single headline on the Bloomberg terminal 0:20:59.640 --> 0:21:03.119 from ben Off Salesforce has fully disbanded our m and 0:21:03.200 --> 0:21:14.560 a committee. We're getting a much more severe decline in 0:21:14.600 --> 0:21:17.240 the earnings and that's going to happen across the economy. 0:21:17.440 --> 0:21:20.360 Are the evidence is already overwhelming. It's been most apparent 0:21:20.400 --> 0:21:23.719 in the tech space because that's where the overinvestment was 0:21:23.760 --> 0:21:26.520 the most egregious. And now we're seeing companies deal with that, 0:21:26.640 --> 0:21:28.919 but we think they're going to be woefully slow to 0:21:29.000 --> 0:21:31.199 get those costs down to a level where you think 0:21:31.240 --> 0:21:34.920 they need to to get the margins to stabilize. Welcome 0:21:34.920 --> 0:21:37.080 back to Boboy Technology. I'm Caroline had in New York 0:21:37.560 --> 0:21:39.840 and now med Lovelow in San Francisco. And that was 0:21:39.920 --> 0:21:43.960 Morgan Stanley, Chief US equity strategist Mike Wilson speaking earlier 0:21:43.960 --> 0:21:46.480 this morning. Let's turn though, from the public markets to 0:21:46.560 --> 0:21:49.520 the private markets in tech were some big news Capital 0:21:49.560 --> 0:21:53.240 g Google's growth investment fund has named Laylas Sturdy as 0:21:53.280 --> 0:21:56.080 its new managing partner and leader the Movements. Sturdy one 0:21:56.119 --> 0:21:59.680 of the only women actually to lead a major venture firm, 0:21:59.720 --> 0:22:02.640