WEBVTT - Tesla Sheds Billions and Raimondo's TikTok Security Concerns 0:00:14.840 --> 0:00:19.079 I'm Caroline Hyde, Oh, I'med Ludlow, both of us in 0:00:19.200 --> 0:00:22.640 San Francisco. This is Bloomberg Technology and after day's adventure 0:00:22.640 --> 0:00:26.759 capital dominating headlines, public market volatility hitting us smack in 0:00:26.800 --> 0:00:29.200 the face, and not to mention the crypto world as well, 0:00:29.440 --> 0:00:31.440 yet more signs of concern there. We have got so 0:00:31.520 --> 0:00:34.640 much to digest coming up, Tesla shedding tens of billions 0:00:34.640 --> 0:00:37.400 of dollars in its market value of its invest today. 0:00:37.440 --> 0:00:40.519 It just fails to energize shareholders. Then why the Commerce 0:00:40.520 --> 0:00:44.479 Secretary told Bloomberg the US concerns over Chinese apps go 0:00:44.640 --> 0:00:48.680 well beyond TikTok and a live conversation with SEC chair 0:00:48.760 --> 0:00:53.360 Gary Gensler about his concerns over artificial intelligence and crypto custody. 0:00:53.640 --> 0:00:56.720 This is crypto friendly bag. Silvergate continues to plunge after 0:00:56.760 --> 0:01:00.160 concerns about its viability. But first end, let's go to 0:01:00.200 --> 0:01:03.520 another key publicly traded stock, Teszler, of course, which look 0:01:03.560 --> 0:01:06.400 didn't get much love from shareholders. Following yesterday's Invest Today event, 0:01:06.680 --> 0:01:10.360 which included another third master plan on this time the 0:01:10.440 --> 0:01:14.080 transition to clean energy, Bloomberg's John O'Cain joins us now 0:01:14.160 --> 0:01:16.360 and look it really feels like we sold the news 0:01:16.360 --> 0:01:19.120 on this. Yeah, I mean, I think people were expecting 0:01:19.160 --> 0:01:22.039 maybe more specifics on the product side. You know, Musk 0:01:22.080 --> 0:01:24.560 and self had on the most recent turnings called called 0:01:24.600 --> 0:01:27.360 out that the next generation vehicle platform was going to 0:01:27.400 --> 0:01:29.119 be a big focus of it. And while we got 0:01:29.200 --> 0:01:31.400 some of the shape of what that might take and 0:01:31.480 --> 0:01:33.559 some of what's going into it, especially on the cost 0:01:33.560 --> 0:01:36.920 production side and the efficiency side, we didn't really get 0:01:36.959 --> 0:01:39.480 too much on the specifics. And you know, we got 0:01:39.560 --> 0:01:42.240 sort of a tease from lead designer friends from Holshouse 0:01:42.240 --> 0:01:43.840 and saying you're gonna have to wait for a later 0:01:43.880 --> 0:01:46.240 date to see anything more about it. Sean, you and 0:01:46.280 --> 0:01:48.840 the team out in Austin, editors in New York, myself 0:01:48.840 --> 0:01:52.840 in San Francisco. Four hours we followed along which headlines 0:01:53.040 --> 0:01:57.960 did we get, What did we learn actually from that presentation? Yeah, 0:01:58.040 --> 0:01:59.840 I mean, I think one of the big things for me, 0:02:00.160 --> 0:02:02.480 especially here in Texas, is that they finally confirmed that 0:02:02.520 --> 0:02:06.360 they broke around on a lithium refinery down near Corpus Christie. 0:02:06.400 --> 0:02:08.920 This is something that we first reported back in September 0:02:09.040 --> 0:02:12.399 must sort of confirmed on the Q three call in October, 0:02:12.480 --> 0:02:15.040 but it's been pretty mum ever since. I've had local 0:02:15.040 --> 0:02:17.359 sources down there for the last couple of weeks telling me, hey, 0:02:17.600 --> 0:02:19.440 you know, we're in the local government. We ever heard 0:02:19.440 --> 0:02:22.120 anything from Tesla, and it didn't really look like too 0:02:22.200 --> 0:02:23.960 much work was being done on the site, so they 0:02:23.960 --> 0:02:25.880 were actually a little bit maybe afraid that that wasn't 0:02:25.919 --> 0:02:28.520 going to happen. But this is their first big step 0:02:28.600 --> 0:02:32.200 into that sort of mine or that lithium supply chain 0:02:32.919 --> 0:02:35.680 that is maybe on the way to a potential mining acquisition. 0:02:35.720 --> 0:02:37.600 We've had some reports about some of that coming from 0:02:37.600 --> 0:02:40.880 Bloomberg and others, but this is really like a hands 0:02:40.880 --> 0:02:42.560 dirty sort of thing, and they're going to move really 0:02:42.639 --> 0:02:45.440 quickly because they want to have product coming out of 0:02:45.480 --> 0:02:49.880 that facility, refined lithium going to other factories by around 0:02:49.919 --> 0:02:52.440 the end of this coming year, early twenty twenty four. 0:02:53.720 --> 0:02:55.960 I think bok Shank and Terriff eight repolting and they 0:02:56.040 --> 0:02:57.680 lost twenty four hours. Thank you. I want to sit 0:02:57.680 --> 0:03:00.760 with this story and bring in future fun niting partners. 0:03:00.840 --> 0:03:04.240 CEO Gary Black, who was at last night's Tesla event 0:03:04.320 --> 0:03:08.119 out in Austin and Gary the market selling the news. 0:03:08.120 --> 0:03:10.800 Are you as disappointed by what you heard as the 0:03:10.840 --> 0:03:14.280 market was. I think there's a couple of things. One, 0:03:14.480 --> 0:03:17.000 it was going to go down anyway. As you know, 0:03:17.120 --> 0:03:19.720 going into today, Testa was up one hundred percent from 0:03:19.760 --> 0:03:22.160 its bottom, so you know there were traders and hedge 0:03:22.160 --> 0:03:25.400 funds playing the name because of this event, So it 0:03:25.480 --> 0:03:28.280 was going to go down regardless. But I do think 0:03:28.360 --> 0:03:34.120 that the investor day itself was it was very aspirational, 0:03:34.160 --> 0:03:36.520 but it was really short on detail, and I think 0:03:36.520 --> 0:03:39.240 that's what you're seeing with today's move. And then you know, 0:03:39.320 --> 0:03:40.840 I'd say the third thing, it was a problem there 0:03:40.920 --> 0:03:43.600 really was no product unveil, even though there was a 0:03:43.600 --> 0:03:45.360 lot of rumors in height that there might be a 0:03:45.400 --> 0:03:47.960 product of veil. And there was no updated financial targets. 0:03:47.960 --> 0:03:50.280 So you put those three things together and I think 0:03:50.320 --> 0:03:53.080 that's why the stock was off like six percent and 0:03:53.120 --> 0:03:56.960 an up one percent day. Yeah, sorry, Kara, I was 0:03:56.960 --> 0:03:59.160 just going to jump in that because I noticed on 0:03:59.200 --> 0:04:01.880 your Twitter and other people's Twitter you were hanging out 0:04:01.880 --> 0:04:04.400 with Ross Gerber while you were at the event. And 0:04:04.440 --> 0:04:07.320 as you know, Gary, he made an activist or a 0:04:07.360 --> 0:04:09.520 friendly activist bid so to speak to the ball, which 0:04:09.520 --> 0:04:13.600 he dropped. His grievance was lack of succession planning, lack 0:04:13.600 --> 0:04:16.760 of other executives. Were you convinced by all of those 0:04:16.800 --> 0:04:19.159 sixteen names that you heard from that there are others 0:04:19.160 --> 0:04:22.440 at that company leading the charge. Yeah, I mean there 0:04:22.480 --> 0:04:24.600 are a few things that I think, you know, give 0:04:24.760 --> 0:04:27.840 tess or some credit for what they accomplished. I think 0:04:27.880 --> 0:04:29.880 they made a convincing case to your point, they have 0:04:29.920 --> 0:04:32.200 a pretty deep team, and you know in the Q 0:04:32.320 --> 0:04:34.160 and A it was I actually took a picture of this. 0:04:34.279 --> 0:04:37.360 They're eighteen people all lined up in shares in a row, 0:04:37.400 --> 0:04:39.640 elon of course in the middle, and it did look 0:04:39.640 --> 0:04:41.680 like they had a pretty deep ense. So they get 0:04:41.760 --> 0:04:43.880 coups for that. I think the second thing, they made 0:04:43.880 --> 0:04:46.440 a convincing case that they can actually drive costs down 0:04:46.839 --> 0:04:49.719 fifty per They didn't but this knew what they called 0:04:49.760 --> 0:04:53.280 Generation three platform, but they didn't give a timeframe and 0:04:53.360 --> 0:04:55.080 actually two years, it could be ten years, and I 0:04:55.080 --> 0:04:57.800 think that's one of the again data points that would 0:04:57.800 --> 0:05:00.919 have been helpful to have. And I think the third 0:05:00.920 --> 0:05:03.400 thing that you know was very helpful, as they said, 0:05:03.400 --> 0:05:06.760 cybertruck is definitely coming this year. That's a big catalyst. 0:05:07.040 --> 0:05:09.440 There's a million what they call pre orders one hundred 0:05:09.440 --> 0:05:11.960 dollars deposit, you know, that could add fifty cents to 0:05:12.000 --> 0:05:14.440 a dollar share next year, and earnings if they even 0:05:14.480 --> 0:05:16.920 got up to about one hundred thousand delivers. So those 0:05:16.920 --> 0:05:19.840 three things I think were positive, but again there really 0:05:19.960 --> 0:05:23.479 wasn't a lot of data to connect the dots, if 0:05:23.480 --> 0:05:26.720 you will. They made the case that their volumes will 0:05:26.800 --> 0:05:30.200 go from one point eight million this year to twenty 0:05:30.200 --> 0:05:33.479 million by twenty thirty, and that was a big, bold assertion, 0:05:33.560 --> 0:05:36.120 but there really wasn't a lot of demand elements, you know, 0:05:36.160 --> 0:05:39.120 by model or by segment to support that. And I think, 0:05:39.320 --> 0:05:41.599 you know, those are the things that is institutional investor 0:05:42.080 --> 0:05:44.599 or We just didn't see a lot of garry. What 0:05:44.640 --> 0:05:47.200 about supply side? What's interesting, they're showing a deep bench 0:05:47.240 --> 0:05:49.800 in terms of executives. They're showing a deep design to 0:05:49.839 --> 0:05:52.160 have a lot more in house technology, particularly on their 0:05:52.240 --> 0:05:54.039 chips actually saw a big move and some of their 0:05:54.120 --> 0:05:58.159 suppliers today. Do you like that sound? I like that 0:05:58.200 --> 0:06:00.160 they're trying to do a lot of it internally. Is 0:06:00.200 --> 0:06:02.560 you know, obviously they cut out the middleman. They're doing 0:06:02.560 --> 0:06:06.960 it themselves. We own Wolf and Wolf, you know, because 0:06:07.800 --> 0:06:09.600 Silicon card by they made the point that they're going 0:06:09.640 --> 0:06:13.360 to cut that by seventy five percent. Look, Tesla makes 0:06:13.360 --> 0:06:15.039 a lot of claims, and you know, one of the 0:06:15.040 --> 0:06:17.320 things that I don't know who said it, but you 0:06:17.360 --> 0:06:19.480 know somebody said it last night is you can't always 0:06:19.560 --> 0:06:22.080 take their claims literally because it takes them a long time. 0:06:22.200 --> 0:06:24.960 I mean, think about Cybertruck. They announced this back twenty 0:06:25.400 --> 0:06:27.480 nineteen and here we are twenty twenty three and it's 0:06:27.520 --> 0:06:30.360 not out, So it could or could not happen. So 0:06:30.480 --> 0:06:32.080 if I'm a supplier and you know some of the 0:06:32.160 --> 0:06:35.320 suppliers got hurt today, I wouldn't get too worked up 0:06:35.360 --> 0:06:37.920 about it because a lot of times these claims don't 0:06:37.960 --> 0:06:42.120 materialize with Tesla. So to me, like Wolf, we own it. 0:06:43.080 --> 0:06:45.560 You know, we think it's still cheap stock, and you know, 0:06:45.600 --> 0:06:48.320 I think it's going to be fine over time. Do 0:06:48.360 --> 0:06:52.200 you get ultimately them frustrated with master plans, with the 0:06:52.240 --> 0:06:55.200 fact that perhaps master Plan one point zero two point 0:06:55.240 --> 0:06:58.960 zero on executed and we're already talking about three point nine. Look, 0:06:59.040 --> 0:07:03.200 that's Elon is brilliant, and he's yet, you know, unpredictable, 0:07:03.240 --> 0:07:06.080 and as an investor, you don't like the unpredictability of it, 0:07:06.400 --> 0:07:08.360 and yeah, we get we get frustrated with it. When 0:07:08.400 --> 0:07:10.800 he bought Twitter, we were very frustrated by that because 0:07:11.200 --> 0:07:13.560 you know, in my experience, it's hard to you know, 0:07:13.640 --> 0:07:16.440 run two companies, and Elon runs three or four now. 0:07:16.480 --> 0:07:20.920 But Twitter is a whole different animal, SpaceX and more 0:07:20.960 --> 0:07:23.600 in which he built from scratch, right. So it's bad 0:07:23.720 --> 0:07:25.560 enough that he's got those two, but now he's got Twitter, 0:07:25.600 --> 0:07:28.800 which is a total rebuild, and so that's frustrating. It's 0:07:28.880 --> 0:07:31.320 you know, it is frustrating that you know, he often, 0:07:32.280 --> 0:07:34.120 you know, does it one a. I guess that's what 0:07:34.200 --> 0:07:36.200 makes him so skilled, and that's what makes him so 0:07:36.280 --> 0:07:38.520 successful that, you know, one of the things people tell 0:07:38.560 --> 0:07:41.240 me about when he realizes he's wrong, he will make 0:07:41.240 --> 0:07:44.200 an immediate turn and go in the right direction. And 0:07:44.280 --> 0:07:45.960 you've seen that over and over again. What tells an 0:07:45.960 --> 0:07:50.040 example is they took radar out of the FSD, and 0:07:50.200 --> 0:07:52.360 I guess he realized that, you know, high death radar 0:07:52.560 --> 0:07:54.360 actually had advance and now they're putting the high death 0:07:54.440 --> 0:07:56.800 radar back in. And I don't know if it frustrates 0:07:56.840 --> 0:07:59.240 me as investor, he used to do them because he 0:07:59.280 --> 0:08:02.720 adds a lot of you he's brilliant and he's he ads, 0:08:02.840 --> 0:08:06.600 you know, tremendous you know value from a a you know, 0:08:06.680 --> 0:08:09.280 stock picking standpoint, But at times you've got to be 0:08:09.320 --> 0:08:14.240 ready to you know, tilt when he tilts, investors left 0:08:14.240 --> 0:08:17.120 wanting more. A future fund managing partner Gary Black were 0:08:17.120 --> 0:08:26.840 really great to have some time at the thank you with. 0:08:27.000 --> 0:08:34.120 What we're worried about is Chinese backed companies being on 0:08:34.520 --> 0:08:38.040 you know, tens of millions of American phones, including members 0:08:38.040 --> 0:08:44.240 of the military, and privacy concerns, data concerns, misinformation concerns. 0:08:45.000 --> 0:08:50.200 That doesn't just apply to TikTok. That was US Commerce 0:08:50.240 --> 0:08:54.320 Secretary Gina Ramundo. They're talking about her concerns around TikTok 0:08:54.360 --> 0:08:56.960 and other Chinese social media apps that are said to 0:08:57.000 --> 0:09:01.520 me threatening national security. Now former NSA David Kennedy, who's 0:09:01.520 --> 0:09:05.760 now founded two cybersecurity companies, Trusted Set Combinary Defense, is 0:09:05.800 --> 0:09:08.800 with us, and David, my question to you is, where 0:09:08.880 --> 0:09:12.960 is the vulnerability. Why is Gina Raymondo concern not just 0:09:13.040 --> 0:09:18.200 about TikTok but other Chinese apps as well. We've seen 0:09:18.440 --> 0:09:21.280 for years that China has created one of the largest 0:09:21.320 --> 0:09:23.480 surveillance states, not only in its own people, but just 0:09:23.600 --> 0:09:28.720 globally tracking US personnel for espionage purposes, cyber warfare. They're 0:09:28.720 --> 0:09:31.960 one of our peer competitors on the cyberspace. They're the 0:09:32.120 --> 0:09:35.480 largest country for intellectual property theft yielding trillions of dollars 0:09:35.520 --> 0:09:38.560 have been electric property efet per year from China. And 0:09:38.880 --> 0:09:41.240 you know, they don't play by any type of rules whatsoever. 0:09:41.400 --> 0:09:43.520 And the big issue that you run into, and I 0:09:43.520 --> 0:09:46.520 think what the big contrast is from you know, social 0:09:46.559 --> 0:09:48.719 media companies here in the United States versus something like 0:09:48.880 --> 0:09:51.720 China is that you know, they control the content that 0:09:51.880 --> 0:09:54.360 is delivered to the endpoints or the dephone or the 0:09:54.400 --> 0:09:56.800 device that is looking at TikTok as well as the 0:09:56.840 --> 0:09:59.120 information that is collected that could then be used by 0:09:59.160 --> 0:10:02.800 the government itself. That's you know, government employees, locations, um, 0:10:02.920 --> 0:10:05.640 you know, information about you know, specific individuals that are 0:10:05.640 --> 0:10:08.120 trying to pull or pulling a type of data information on. 0:10:08.520 --> 0:10:11.720 They use this as another source of many other sources 0:10:11.760 --> 0:10:13.880 that they centrally use and they're one of the best 0:10:13.880 --> 0:10:16.480 when it comes to large big data analytics and what 0:10:16.520 --> 0:10:19.440 they're dealing with if with tracking people all across the world, 0:10:19.440 --> 0:10:21.160 that it's a major problem and it's a major concern, 0:10:21.280 --> 0:10:26.240 especially from China. David, you are a hacker, but the friendly, 0:10:26.360 --> 0:10:29.840 the friendly kind of hacker, as I understand it. What 0:10:30.000 --> 0:10:35.119 I don't understand is is this a sort of systems 0:10:35.200 --> 0:10:39.400 vulnerability or is this an issue of who has access 0:10:39.480 --> 0:10:44.400 to data? It's it's a combination of bulf actually. So 0:10:44.440 --> 0:10:46.560 if you know, if you look at byte Dance, which 0:10:46.600 --> 0:10:50.760 is the you know, subsidiary company that is um you know, 0:10:50.800 --> 0:10:54.320 out of Beijing, specifically they control the code that goes 0:10:54.360 --> 0:10:56.640 into the devices. Now you know, Apple for example, has 0:10:56.679 --> 0:11:00.320 a pretty stringent UH policy around you know, inspecting source 0:11:00.360 --> 0:11:02.040 code and things like that. It's Google a little bit 0:11:02.040 --> 0:11:04.720 more on the open side. But the collection of the 0:11:04.800 --> 0:11:07.640 data aspect and where that data it goes to is 0:11:07.679 --> 0:11:10.079 the most concerning part about it. Could they introduce code 0:11:10.120 --> 0:11:13.880 that you know, could eavesdrop on US citizens, absolutely, um 0:11:13.960 --> 0:11:16.080 you know. But the main concern is the amount of 0:11:16.080 --> 0:11:19.560 information that they're pulling back, collecting and then using that 0:11:19.880 --> 0:11:23.080 information to go against you know, key personnel that they 0:11:23.080 --> 0:11:25.800 would look to target um you know, or individuals or 0:11:25.840 --> 0:11:29.280 people that are of interest to the Chinese government, you know, scientists, 0:11:29.400 --> 0:11:33.439 medical research, you know, duty contractors that specifically focus on 0:11:33.640 --> 0:11:36.720 you know, next generation research or weapons systems, missile defense systems, 0:11:37.080 --> 0:11:40.240 those types of things, as well as their ability to 0:11:40.240 --> 0:11:42.760 control content that goes to individuals. So obviously, you know, 0:11:42.760 --> 0:11:44.959 you hear the term misinformation quite a bit. I think 0:11:44.960 --> 0:11:47.040 what's most important to understand is that you know, they 0:11:47.040 --> 0:11:49.320 can start to home in and and focus content on 0:11:49.400 --> 0:11:53.679 individuals and really change their perception of what's actually occurring 0:11:53.679 --> 0:11:56.200 in reality. And you know, we live through our devices nowadays, 0:11:56.200 --> 0:11:58.440 and you know, live through TikTok, lift through you know, 0:11:58.480 --> 0:12:02.240 Facebook and Twitter, and through various online news sources. So 0:12:02.360 --> 0:12:05.040 what is presented to us as content is typically our 0:12:05.080 --> 0:12:07.520 worldview on what's actually happening out there. So can you 0:12:07.640 --> 0:12:10.400 curb you know, public opinion based on the contents coming 0:12:10.400 --> 0:12:14.040 out of TikTok And that's absolutely possible, do you Roman though? 0:12:14.040 --> 0:12:17.160 Of course, coming from the administration, there has been much 0:12:17.600 --> 0:12:21.360 talk the administration doing something about TikTok, maybe we chat 0:12:21.360 --> 0:12:24.320 Ali pay some of the others as well, but dragging 0:12:24.320 --> 0:12:26.760 their heels and so states have started to step in 0:12:26.920 --> 0:12:31.800 or individual institutions, particularly in the well the education side 0:12:31.800 --> 0:12:33.439 of things, is that the right way to deal with this, 0:12:35.200 --> 0:12:39.000 you know, the outright of banning of TikTok is is 0:12:39.040 --> 0:12:43.600 an interesting and other Chinese owned companies is an interesting dilemma. 0:12:43.640 --> 0:12:46.600 I think, you know what just recently happened with banning 0:12:46.600 --> 0:12:49.760 it within government employees as a solid one. You know, 0:12:49.800 --> 0:12:53.320 we removed Huawei from being able to be purchased here 0:12:53.320 --> 0:12:56.000 in the United States specifically on military basis installation can 0:12:56.080 --> 0:12:58.600 have hardware in those facilities, which is a Chinese based company. 0:12:59.440 --> 0:13:02.120 And there's been direct intelligence that have shown Huawei has 0:13:02.480 --> 0:13:04.400 you know, worked on behalf of the Chinese government for 0:13:04.440 --> 0:13:07.520 intellectual property theft in other areas. Um. You know, the 0:13:07.600 --> 0:13:09.880 interesting part is, you know, does the federal government play 0:13:09.880 --> 0:13:13.600 a role in what the US you know, citizens can 0:13:13.720 --> 0:13:16.400 and can't cannot do. And I think that's a pretty 0:13:16.480 --> 0:13:19.440 large discussion, heavy discussion have They've largely stayed away from that, 0:13:19.880 --> 0:13:21.840 And I think you're looking at states kind of looking 0:13:21.880 --> 0:13:25.040 at well, personal information is really important. It's not just 0:13:25.120 --> 0:13:27.440 TikTok for example, I mean social Security number is your 0:13:27.440 --> 0:13:31.520 personal data that's stored within corporations. You know, Uh, the 0:13:31.600 --> 0:13:34.840 EU does this very well with protecting personal information. So 0:13:35.360 --> 0:13:36.960 I think states are looking at this and saying, well, 0:13:37.000 --> 0:13:39.880 can we look at this as a personal information issue, 0:13:39.880 --> 0:13:42.959 a privacy issue, and can we put controls in place 0:13:43.040 --> 0:13:45.679 that hold you know that that holds bitte dance specifically 0:13:45.720 --> 0:13:48.240 accountable for where that data is stored and how it's protected, 0:13:48.600 --> 0:13:51.280 not necessarily banning it. I think that's probably a better 0:13:51.320 --> 0:13:53.440 measured approach to say, you know, this data has to 0:13:53.440 --> 0:13:57.760 stay here. Of course, the continued crackdown, you are still 0:13:57.760 --> 0:14:02.199 reviewing existing licenses from export to Huawei as well. We 0:14:02.320 --> 0:14:05.280 continue to keep our communications with that company open as well. 0:14:05.440 --> 0:14:07.880 David Kennedy, we want to thank you so much, trusted 0:14:07.880 --> 0:14:11.320 sec founder and indeed an ethical hacker. Meanwhile, we've talked 0:14:11.320 --> 0:14:14.720 about how the cybersecurity industry, perhaps some would say, is 0:14:14.960 --> 0:14:18.800 seeing high labor shortages right now in the face of 0:14:18.840 --> 0:14:21.240 all of that work to be done. But look broadly, 0:14:21.280 --> 0:14:23.760 it's an issue across the board in America, the labor 0:14:23.800 --> 0:14:26.600 side that is. Here's what US Commerce Secretary Gena Romano 0:14:26.720 --> 0:14:29.520 also had to say earlier about some of the top 0:14:29.520 --> 0:14:34.280 concerns she hears from CEOs. She's in touch with workforce. 0:14:35.200 --> 0:14:40.520 It's unbelievable, like workforce, workforce, workforce. We can't hire enough, 0:14:40.720 --> 0:14:45.800 we can't hire first enough, we can't hire people with 0:14:46.240 --> 0:14:50.800 the skills that we need. Look, so we went to 0:14:50.800 --> 0:14:54.200 you our audience, and we actually asked them, look does 0:14:54.240 --> 0:14:56.840 this apply to technology, because I'm afraid the labor tightness 0:14:56.880 --> 0:14:59.000 she talks of. We meanwhile got all these layouts who 0:14:59.000 --> 0:15:01.560 are closure in congres ideas all we hear is laos 0:15:01.800 --> 0:15:04.600 or service. I do hear from tech executives. There are 0:15:04.600 --> 0:15:09.360 specific roles. They can't feel like expertise, but pretty divisive 0:15:09.360 --> 0:15:12.400 subjects in the tech sector as well. Fifty say yes 0:15:12.520 --> 0:15:16.320 look to tastop concern is talent still in the tech sector. 0:15:16.360 --> 0:15:19.120 Even so, we'll keep tracking that one now coming up. 0:15:19.160 --> 0:15:23.560 Salesforce CEO Mark Benioff on the company's pivot away from 0:15:23.680 --> 0:15:26.960 M and A to provatization. The change in strategy seems 0:15:26.960 --> 0:15:29.000 to be paying off for investors. To take a look 0:15:29.000 --> 0:15:31.400 at that shark, Caroline. We'll bring you more of that next. 0:15:31.760 --> 0:15:44.320 This is Bloomberg. As we really focus on our performance, 0:15:44.440 --> 0:15:47.560 on our profitability, on the reprioritization back to being a 0:15:47.640 --> 0:15:51.080 core CRM company. It was really time to put the 0:15:51.400 --> 0:15:54.440 M and A committee on ice and just mitigate what 0:15:54.480 --> 0:15:56.360 we've been doing with M and A and as focused 0:15:56.360 --> 0:15:58.440 more on our chord as part of the transformation that 0:15:58.560 --> 0:16:01.040 I've put it into the company in the last ninety days, 0:16:02.360 --> 0:16:06.400 sales will CEO Mark Penny of following the company's reprioritization, 0:16:06.560 --> 0:16:08.640 it's back on profits. Some are let's bring in Bloomberg 0:16:08.640 --> 0:16:12.480 Intelligent senior technology analysts Anna Granner and look as he 0:16:12.560 --> 0:16:15.880 reprioritizes to basically where the activist investors want him to. 0:16:16.160 --> 0:16:18.200 What should he be thinking of if it's not M 0:16:18.280 --> 0:16:22.200 and A No. I think the organic growth rate is 0:16:22.360 --> 0:16:24.480 very important for this company. I think that a decail 0:16:24.640 --> 0:16:26.960 rating for a while that needs to go up. But 0:16:27.000 --> 0:16:29.160 the big thing for us as well as has been 0:16:29.400 --> 0:16:31.640 that they spend way too much on sales and marketing. 0:16:31.720 --> 0:16:33.920 I think we are not the only one that talked 0:16:33.960 --> 0:16:36.560 about in the last few years. Everybody is looking at 0:16:36.560 --> 0:16:39.440 a company like this. Everybody knows Salesforce. It's been around 0:16:39.440 --> 0:16:42.120 for twenty four years. Why is it it's spending forty 0:16:42.160 --> 0:16:45.600 percent of its sales on sales and marketing compared to 0:16:45.760 --> 0:16:48.240 let's say Microsoft with eleven percent. I think that's where 0:16:48.280 --> 0:16:50.920 everybody got excited, and that's where where you see now. 0:16:51.680 --> 0:16:55.240 If Anna Ring you say everybody knows Salesforce, you've written 0:16:55.280 --> 0:16:59.040 on a research date. This is the new salesforce. What 0:16:59.200 --> 0:17:04.000 is so attractive about the new salesforce? If philosophically an 0:17:04.119 --> 0:17:07.080 every good company should take care of, you know, sales 0:17:07.080 --> 0:17:09.439 and marketing and profit in the same manner as let 0:17:09.440 --> 0:17:11.840 you look at growth from a salesforce point of view. 0:17:11.880 --> 0:17:14.000 It was the only focus for growth for the past 0:17:14.080 --> 0:17:16.679 decade and two US and free cash flow was not 0:17:16.840 --> 0:17:19.119 the biggest priority. And I think that's you should have 0:17:19.160 --> 0:17:20.639 a balance of them. I'm not saying, you know, you 0:17:20.720 --> 0:17:22.480 need to be on one side or the other. The 0:17:22.560 --> 0:17:26.280 new salesforce is going to be very, very profitable. I 0:17:26.359 --> 0:17:28.720 think from from the old point of view, the question 0:17:28.840 --> 0:17:31.520 is can we see a decent amount of growth when 0:17:31.520 --> 0:17:35.320 the economy turns? Hey, Anna, rag is Smartpenny is still 0:17:35.400 --> 0:17:39.800 under pressure? I don't. I think he has I would 0:17:39.800 --> 0:17:42.240 say a couple of years without any problem now, because 0:17:42.280 --> 0:17:45.800 he's delivered in one go. I mean, can you imagine 0:17:45.880 --> 0:17:49.919 his margin targets are well ahead of time, so I 0:17:49.920 --> 0:17:51.760 think he has enough time now. I don't think it's 0:17:51.800 --> 0:17:55.520 going to be an issue. Slim Bag Intelligence Senior tech analyst, 0:17:55.560 --> 0:18:09.320 Anna rag Brna, thank you very much. Security and Exchange 0:18:09.359 --> 0:18:12.320 Commission that's been busy as looking into potential conflicts of 0:18:12.320 --> 0:18:18.120 interest with asset managers using artificial intelligence, specifically predictive data analytics. This, 0:18:18.240 --> 0:18:20.520 of course, this is the SEC is also weighing some 0:18:20.600 --> 0:18:23.840 of the biggest changes to American equity market structure nearly 0:18:23.840 --> 0:18:26.360 two decades, and of course it continues to crack down 0:18:26.440 --> 0:18:28.640 on the crypto industry more broadly following the fall out 0:18:28.640 --> 0:18:32.280 of FTX, joining us to discuss from the BI Market 0:18:32.320 --> 0:18:34.920 Structure Conference. We're very pleased to welcome to the show, 0:18:35.080 --> 0:18:39.280 SEC chair Gary Gensler. Long day of Blomberg conversations for you, 0:18:39.320 --> 0:18:41.440 and we are pleased to have you live on this show. 0:18:41.800 --> 0:18:43.680 Share Gensler, I'm just going to start with the day 0:18:43.680 --> 0:18:46.399 of news and start with Silvergat in particular its shares 0:18:47.119 --> 0:18:49.359 very much under dr rest at the moment because it 0:18:49.400 --> 0:18:52.320 couldn't hand in a ten K filing to you in time, 0:18:52.840 --> 0:18:55.280 noting that it was worried of course about well, it's 0:18:55.320 --> 0:18:58.479 ability to remain a going concern. How have you worried 0:18:58.560 --> 0:19:01.800 about the spillover BACTERA. You're talking to colleagues over the 0:19:01.840 --> 0:19:05.040 FDIC and some of the other institutions. So let me 0:19:05.160 --> 0:19:08.439 let me step back caroline from any one company, and 0:19:08.480 --> 0:19:14.240 for your viewers, we play a role in overseeing the markets, 0:19:14.280 --> 0:19:19.720 overseeing registaurants, and of course we have a robust sort 0:19:19.760 --> 0:19:23.040 of copple on the beat or enforcement and examination functions. 0:19:23.080 --> 0:19:28.600 So I'm not going to comment on any one company here, 0:19:29.119 --> 0:19:36.919 But in terms of the overall question about crypto tokens 0:19:36.960 --> 0:19:43.280 and the crypto markets, while they are give or take 0:19:43.320 --> 0:19:49.840 a trillion dollars of worldwide market value, our overall capital 0:19:49.880 --> 0:19:52.399 markets here in the US are well for one hundred 0:19:52.440 --> 0:19:55.640 trillion dollars, So that puts it in contexts of scale. 0:19:56.320 --> 0:20:00.359 But it is important that so much of this field, 0:20:00.440 --> 0:20:07.480 this crypto field, is highly speculative. It is not necessarily 0:20:07.600 --> 0:20:11.720 the investing public should understand this. It's not necessarily compliant 0:20:11.920 --> 0:20:17.119 currently with the appropriate laws of our nation to protect you, 0:20:17.440 --> 0:20:22.760 the investing public, to get full, fair and truthful disclosures 0:20:23.040 --> 0:20:30.000 to understand what's happening at these platforms. So that being 0:20:30.080 --> 0:20:36.440 the case, traditional finance, much of traditional finance being compliant 0:20:37.480 --> 0:20:42.400 has some question and is adverse in dealing with what 0:20:44.560 --> 0:20:47.359 may well be depending upon the company and so forth, 0:20:47.760 --> 0:20:52.200 dealing in highly speculative assets that are not necessarily compliant 0:20:52.280 --> 0:20:57.920 with their laws. Let's talk therefore more broadly about your 0:20:57.920 --> 0:21:01.040 focus and enforcement. I just want to ring what one 0:21:01.080 --> 0:21:04.960 particular builder in the ecosystem, the Ripple founder, had to 0:21:04.960 --> 0:21:06.440 say a little bit earlier. If you could just take 0:21:06.440 --> 0:21:09.960 a listen, the sec is kind of playing offense and 0:21:10.119 --> 0:21:12.960 attacking the whole industry. This is not a healthy way 0:21:12.960 --> 0:21:17.280 to regulate an industry. Your regulation through enforcement, as opposed 0:21:17.280 --> 0:21:19.359 to where we're seeing in other countries where they're doing 0:21:19.359 --> 0:21:22.919 the work right, they're codifying, they're creating a framework that 0:21:23.000 --> 0:21:26.639 allows an industry to grow while protecting consumers. And I 0:21:26.640 --> 0:21:30.800 think that's really what the US is lagging now. Check INSLA. 0:21:30.840 --> 0:21:32.760 I'm pretty sure you might say, well, look, a founder 0:21:32.800 --> 0:21:34.760 in that sort of business might be saying this, but 0:21:35.080 --> 0:21:38.400 what about some of these players. We've spoken to many 0:21:38.440 --> 0:21:40.959 who have perhaps been part of previous administrations who are 0:21:41.040 --> 0:21:43.359 now you know, advises to some of these companies and 0:21:43.480 --> 0:21:46.840 worried a little bit about the holistic nature of really 0:21:46.880 --> 0:21:49.480 trying to regulate, and worried that it is more about 0:21:49.600 --> 0:21:53.160 enforcement rather than the rules of the road. At the moment, Paralyne, 0:21:53.720 --> 0:22:01.000 there's nothing incompatible crypto in our securities law, our securities 0:22:01.040 --> 0:22:05.399