WEBVTT - FCC Pressures Big Tech to Remove Tik-Tok 0:00:02.240 --> 0:00:05.560 From the heart of where innovation, money and power. CALLI 0:00:06.400 --> 0:00:10.879 in Silicon Valley and beyond. This is Bloomberg Technology with 0:00:10.960 --> 0:00:27.240 Emily jam I'm Caroline Hide in family Chat and this 0:00:27.280 --> 0:00:29.600 is Bloomberg Technology. Coming up in the next hour. Media 0:00:29.600 --> 0:00:32.160 Mogul's billionaires and some of the biggest names from tech, media, 0:00:32.240 --> 0:00:35.680 business and finance and sports while they're converging in some valley. 0:00:35.720 --> 0:00:38.160 This week, we'll get the latest from the ground. Last 0:00:38.200 --> 0:00:40.800 one of the most famous apps in the world, It's TikTok. 0:00:41.000 --> 0:00:43.280 It is under pressure with the challenge of its own 0:00:43.760 --> 0:00:46.600 the SEC Commissioner. Pressure is big Tech to delete it 0:00:46.880 --> 0:00:49.000 from its app stores. We speak with him live in 0:00:49.040 --> 0:00:52.239 a moment And companies last year defied the pandemic to 0:00:52.240 --> 0:00:54.960 go public at a record pace. Now inflation and recession 0:00:55.000 --> 0:00:57.760 fears of caught up and brought the listing party to 0:00:57.840 --> 0:00:59.640 a bit of a halt. We speak with the our 0:00:59.720 --> 0:01:02.280 section of Commercial Officer Jeff Thomas. What to expect for 0:01:02.320 --> 0:01:04.760 the second half get to all of that, but a 0:01:04.840 --> 0:01:07.120 moment a first, let's gotta look in the markets. Crenny 0:01:07.160 --> 0:01:10.240 Gupta in the house and text talk stuff pretty well. Yeah, 0:01:10.280 --> 0:01:13.360 they made a complete turnaround Caroline's fascinating when you see 0:01:13.360 --> 0:01:14.880 this because if you had looked at the market at 0:01:14.959 --> 0:01:17.679 nine thirty am this morning, this is not what the 0:01:17.720 --> 0:01:19.720 markets looked like. You did not see green on the screen. 0:01:19.720 --> 0:01:22.120 You had an almost two percent decline in those opening bells. 0:01:22.280 --> 0:01:24.640 A lot of that driven by the stronger dollar story 0:01:24.680 --> 0:01:26.760 that we saw, but you kind of saw a turnaround 0:01:26.840 --> 0:01:29.080 story in about i won't say, halfway through the session, 0:01:29.120 --> 0:01:31.640 a lot of it driven by Big Tex, so much 0:01:31.680 --> 0:01:33.200 to the point that you can actually see at the 0:01:33.319 --> 0:01:36.320 SPI close to up only two tenths of one percent. 0:01:36.600 --> 0:01:39.480 The NASDAC though outperforming in a very big way, up 0:01:39.520 --> 0:01:41.760 one point seven percent on the day. But take a 0:01:41.760 --> 0:01:43.200 look at these yields, because I bet some of the 0:01:43.240 --> 0:01:45.959 yield picture is playing in two as well. Down only 0:01:46.000 --> 0:01:48.800 six basis points, well seven, I should say seven basis points, 0:01:49.040 --> 0:01:51.520 and I'm say only seven basis points, Caroline, because in 0:01:51.560 --> 0:01:54.760 the last couple of days and weeks, we've had eleven, twelve, 0:01:54.880 --> 0:01:57.520 even twenty basis point moves in just one day. So 0:01:57.560 --> 0:02:00.400 it's almost a muted day for bonds, but perhaps lifting 0:02:00.480 --> 0:02:02.640 the stock market just a little bit, especially those tech 0:02:02.680 --> 0:02:05.640 stocks that we know are extremely ultra rate sensitive, which 0:02:05.680 --> 0:02:08.480 brings me to the high beta stocks in particular. Let's 0:02:08.520 --> 0:02:10.640 talk about ARC the R innovation E t F. We 0:02:10.720 --> 0:02:13.320 know that's the trade that has not been working this year, 0:02:13.320 --> 0:02:16.040 but today it actually performed well. And that's because the 0:02:16.120 --> 0:02:19.359 lights of Tesla, Microsoft, Google, all the big technics have 0:02:19.480 --> 0:02:21.640 been taking a baiting. They did really well today. But look, 0:02:21.919 --> 0:02:24.320 isn't enough to have a tartground story for the lights 0:02:24.320 --> 0:02:26.760 of our innovation. It doesn't seem so, at least on 0:02:26.800 --> 0:02:29.840 this one day basis, just given the kind of blood 0:02:29.960 --> 0:02:32.760 that we've seen in this particular market. So that's something 0:02:32.800 --> 0:02:34.200 that we're gonna have to keep an eye on. And 0:02:34.280 --> 0:02:36.360 let's get to actually the next slide, which I should 0:02:36.360 --> 0:02:39.560 mention it's not just a small tech that's bounced, because 0:02:39.560 --> 0:02:41.720 you saw that in cryptocurrency, you saw that in biotech 0:02:41.760 --> 0:02:44.560 as well, but big tech really really lead the charge. 0:02:44.639 --> 0:02:46.600 I want to emphasize as much as I can, Caroline, 0:02:46.600 --> 0:02:48.600 because take a look at this. These are your biggest 0:02:48.840 --> 0:02:52.200 movers on the day, but also your biggest index contributors 0:02:52.200 --> 0:02:54.680 on the day. Your Amazon to your Apples, your Microsoft's, 0:02:54.680 --> 0:02:57.119 your Tesla. Do we see this again tomorrow? How much 0:02:57.120 --> 0:02:59.400 of this is a technical trade. Caroline, I don't have 0:02:59.400 --> 0:03:01.760 those answers, are you, but I'm curious to see if 0:03:01.800 --> 0:03:05.120 this is a sustainable move on wheel Creaty. Thank you 0:03:05.200 --> 0:03:07.560 so much a great round up. Meanwhile, Tesla one of 0:03:07.600 --> 0:03:10.119 the names could you just mentioned, actually higher that's even 0:03:10.120 --> 0:03:13.480 after disappointing quarter of deliveries and record month of production. 0:03:13.880 --> 0:03:16.960 Now factories in both China and Germany will remain idle 0:03:17.000 --> 0:03:19.400 for several weeks. Joining us on the phone to discuss 0:03:19.440 --> 0:03:20.760 all of this when I was down a hall who 0:03:20.800 --> 0:03:25.280 covers the company, Danna. We've sort of had mixed messages 0:03:25.320 --> 0:03:27.400 from Elon Musque about the cash burn that's going on, 0:03:27.480 --> 0:03:29.639 and indeed they didn't seem to paint the picture that 0:03:29.639 --> 0:03:32.240 will be closing down some of their manufacturing units for 0:03:32.240 --> 0:03:35.160 for some sort of break. Yeah, they've been a coule 0:03:35.200 --> 0:03:38.120 different reports out of China and Germany that the plants 0:03:38.160 --> 0:03:40.480 are going to be offline for a couple of weeks. 0:03:40.720 --> 0:03:44.160 Uh this this month, Um, you know, the half class 0:03:44.240 --> 0:03:47.240 empty would say, oh god, this is what a terrible 0:03:47.240 --> 0:03:49.920 time to be offline. Right, they just gave off of 0:03:49.960 --> 0:03:53.480 this sort of bad quarter where production was paused because 0:03:53.480 --> 0:03:56.440 of COVID. Now they're you know, shutting down production again 0:03:56.520 --> 0:03:59.119 the glass how cool? Would say, well, this is all 0:03:59.160 --> 0:04:03.960 built back better. You know, auto companies typically tick plans offline, 0:04:04.200 --> 0:04:06.480 especially around the July was holiday here in the US, 0:04:06.560 --> 0:04:09.840 to kind of do retooling, to do equipment maintenance, and 0:04:10.080 --> 0:04:12.800 you could often get better production after you've had an 0:04:12.840 --> 0:04:14.760 opportunity to kind of do that. So we'll just have 0:04:14.840 --> 0:04:17.960 to wait and see what production is like going forward. Um, 0:04:18.400 --> 0:04:21.440 the company did say that they had a really strong 0:04:21.480 --> 0:04:25.040 production for June. Yeah, what was it, two d fifty 0:04:25.080 --> 0:04:28.520 four thousand, six nine deliveries for June, which is the 0:04:28.520 --> 0:04:30.599 most they've ever made in history, but it actually was 0:04:30.600 --> 0:04:34.960 still less than the market wanted. Well, that was no excellent. No, Actually, 0:04:35.240 --> 0:04:37.839 to fifty four was the was the deliveries for the quarter, 0:04:37.920 --> 0:04:40.279 which was a dip from the first quarter. But but 0:04:40.360 --> 0:04:43.160 the market kind of expected that because we knew that China, 0:04:43.600 --> 0:04:46.600 which is their most productive factory, had been offline for 0:04:46.640 --> 0:04:50.040 several weeks because of the COVID lockdown. Um. But yeah, no, 0:04:50.160 --> 0:04:52.080 it's it's it's definitely a mixed bag. I mean, I 0:04:52.120 --> 0:04:54.440 think there's gonna be a lot of questions about production 0:04:54.760 --> 0:04:57.640 and the ramp up of the new factories in Austin 0:04:57.720 --> 0:05:02.359 and Berlin. When the company reports earnings twenty Yeah, Berlin, 0:05:02.480 --> 0:05:05.240 Austin losing billions of dollars right now because there's a 0:05:05.279 --> 0:05:08.760 ton of expense and hardly any output. Musque seemed to 0:05:08.760 --> 0:05:11.800 be telling Tesla owner's back on May thirty one. Is 0:05:11.839 --> 0:05:15.680 he painting in general a gloomier picture or not beat one? 0:05:15.720 --> 0:05:18.680 What do you think? Well, I mean he's I think 0:05:18.680 --> 0:05:20.880 he's always been fairly you know, to his credit. I 0:05:20.880 --> 0:05:23.440 think he's always been fairly frank about the state of 0:05:23.440 --> 0:05:25.440 the economy as a whole. And this is a man 0:05:25.600 --> 0:05:30.040 who is now the longest running auto auto industry CEO. 0:05:30.160 --> 0:05:32.200 I mean, he's been the CEO of tessil two thousand 0:05:32.200 --> 0:05:34.880 and eight. He steered the company through the first recession 0:05:35.160 --> 0:05:36.800 or the most recent recession in two thousand and eight 0:05:36.800 --> 0:05:40.040 two thousand nine, the company became very close to bankruptcy 0:05:40.160 --> 0:05:42.840 during the Model three ramp and eighteen. And it is 0:05:42.920 --> 0:05:46.600 this dance of like, you're investing all of this money 0:05:46.680 --> 0:05:50.440 into getting new production capacity online, but until they're actually 0:05:50.520 --> 0:05:52.640 producing cars and you're delivery in the cars, you're not 0:05:52.720 --> 0:05:55.520 really making that much money. So I think he's actually 0:05:55.560 --> 0:05:58.800 gotten fairly good at kind of managing cash and figuring 0:05:58.800 --> 0:06:01.400 out which leverage to pull. Um, you know, demand is 0:06:01.520 --> 0:06:03.760 not seen to be a problem at least the moment, 0:06:03.880 --> 0:06:06.520 and Tesla has raised prices quite a bit to kind 0:06:06.520 --> 0:06:09.599 of cover the costs of you know, higher energy costs 0:06:09.640 --> 0:06:12.120 and higher commodity costs, and let's face it, making a 0:06:12.160 --> 0:06:15.120 lot more revs than anyone else out there. Donna. Lastly, 0:06:15.200 --> 0:06:18.520 just the moon music around Shanghai in general, because again 0:06:18.560 --> 0:06:21.800 we were worrying about further lockdowns coming from those cities. 0:06:21.960 --> 0:06:24.880 Is as a zero COVID policy seems very much still 0:06:24.920 --> 0:06:27.279 in effect. How much are we worried about the longer 0:06:27.400 --> 0:06:31.919 term meant that the Tesla has made. I mean, I 0:06:31.960 --> 0:06:35.640 think that you know, Tesla's footprint in China is so 0:06:35.680 --> 0:06:38.400 important to the company and then also just very important 0:06:38.400 --> 0:06:41.640 to China. I can't see that they are gonna, you know, 0:06:41.839 --> 0:06:44.480 let that plant you know fall by the wayside. I mean, 0:06:44.520 --> 0:06:46.560 they were having people were living in the plant, you know, 0:06:46.560 --> 0:06:48.880 in the closed loop system for as long as they 0:06:48.920 --> 0:06:52.159 possibly could. So. Um, but you know, the I mean, 0:06:52.480 --> 0:06:55.360 the geopolitical questions about China visity of the US are 0:06:55.360 --> 0:06:57.920 always really interesting ones but no, it's it's a very 0:06:57.920 --> 0:07:01.880 strategic plant for the company for sure. Danaha always love 0:07:01.960 --> 0:07:05.920 her on to talk all things Tesla. We thank you indeed. Meanwhile, 0:07:06.360 --> 0:07:08.600 well Elon Musk is actually meant to be out in 0:07:08.640 --> 0:07:11.360 Sun Valley as our media moguls, billionaires, some of the 0:07:11.400 --> 0:07:14.920 biggest names in tech, media, business and finance and sports, 0:07:15.040 --> 0:07:19.280 and well our own notable attribute, which is Ed Ludlow 0:07:19.520 --> 0:07:21.679 is on the ground there too, along with Shinali Bassa. 0:07:21.800 --> 0:07:24.120 Can Ed talk to us about what's going on on 0:07:24.160 --> 0:07:26.120 the ground. Who have you seen? What if you managed 0:07:26.120 --> 0:07:30.440 to already? So Bob By, former Disney CEO of course 0:07:30.560 --> 0:07:33.440 now upstairs, has just walked past me and I said 0:07:33.480 --> 0:07:35.400 to him, Bob, what's top of mind for you? And 0:07:35.400 --> 0:07:37.920 he said, Ed, I'm retired, having a good time in 0:07:37.960 --> 0:07:40.040 the sun. Its top of mind for me. But you 0:07:40.080 --> 0:07:42.240 do get people that come and talk about the industry, 0:07:42.320 --> 0:07:45.640 right and one of those was one a Discovery CEO, 0:07:45.800 --> 0:07:48.760 David doust Love, and he actually basically set the scene 0:07:48.760 --> 0:07:53.240 of what's being discussed there having it. I think it's 0:07:53.280 --> 0:07:58.640 going to be a great term. But that having a 0:07:58.640 --> 0:08:03.200 lot of opportunity. One of rose Discover, who's got great 0:08:03.320 --> 0:08:07.560 body content. I think the world's changed, and it's not 0:08:07.640 --> 0:08:11.440 about how much, it's about how it work. The world's changed, 0:08:11.480 --> 0:08:13.840 car but the vibe is very similar here this year 0:08:13.880 --> 0:08:17.160 to last year. Really heavy COVID restrictions in place for attendees. 0:08:17.520 --> 0:08:20.320 But there's there's a lot that they're discussing that's big picture, 0:08:20.760 --> 0:08:23.200 and of course the backrupt drop that they're all competing 0:08:23.240 --> 0:08:26.560 each other in a in a highly competitive streaming space 0:08:27.000 --> 0:08:29.400 while the consumer is suffering with inflation and fears of 0:08:29.400 --> 0:08:32.959 a recession overall. I mean, remember last time you were 0:08:33.480 --> 0:08:38.560 looking at the relationships, for example, the fact that whether 0:08:38.840 --> 0:08:43.240 indeed Mark Zuckerberg was indeed chhotting to Cheryl Samberg. There's 0:08:43.240 --> 0:08:45.080 been a lot of change at the top since you 0:08:45.120 --> 0:08:48.880 were last there. Yeah, and and those same awkward moments 0:08:48.880 --> 0:08:50.920 are expected to happen, right, you know, I talked about 0:08:50.960 --> 0:08:54.720 Bob Vigor what Bob j Peck from Disney the currency 0:08:54.840 --> 0:08:56.720 over here as well. There have been rumors that their 0:08:56.760 --> 0:09:00.080 relationship is under stress. You have Elon Musks due to 0:09:00.120 --> 0:09:03.840 come here along with the Twitter CEO Paraga and CFO 0:09:03.960 --> 0:09:06.400 Ned Segel. Of course they're going to talk about the 0:09:06.400 --> 0:09:08.880 Twitter deal, and even if they are when they're walking 0:09:08.880 --> 0:09:11.520 through the corridors to brunch, or they're out on their 0:09:11.559 --> 0:09:14.640 mountain bike having an adventure, or their fly fishing whatever. 0:09:14.679 --> 0:09:17.679 It is. Obviously that deal is going to be discussed 0:09:17.679 --> 0:09:20.440 here because it's the one that everyone in this media 0:09:20.520 --> 0:09:23.240 landscape talking about. Just remind us what everyone there is 0:09:23.240 --> 0:09:25.640 actually meant to be doing, apart from fly fish is it? 0:09:25.800 --> 0:09:29.360 Is it about relationship building? Is it about sharing knowledge? 0:09:29.360 --> 0:09:33.280 What is actually the the overall impact of a Some Valley? Yeah? So, 0:09:33.280 --> 0:09:35.680 so Some Valley is hosted by Alan and Co. And 0:09:35.720 --> 0:09:38.120 Alan and Co is a boutique investment bank that it's 0:09:38.160 --> 0:09:41.280 advised on some of the biggest deals in history. Right, 0:09:41.280 --> 0:09:43.400 you look at their name and where the deals they've 0:09:43.400 --> 0:09:45.599 been involved in this past year. They are advisors on 0:09:45.640 --> 0:09:47.560 the Twitter deal, right, they have been involved in the 0:09:47.600 --> 0:09:51.040 Microsoft Activision deal. The ideas that they bring together all 0:09:51.040 --> 0:09:54.680 of these people principally from telecoms, media and tech, but 0:09:54.760 --> 0:09:56.959 you see other people. Mary Barrett from gm IS used 0:09:56.960 --> 0:09:59.240 to be here, and you know, the hope, let's not 0:09:59.240 --> 0:10:01.280 beat around the bush. The hope is that this is 0:10:01.280 --> 0:10:03.960 a place where future deals are born. You know, the 0:10:04.080 --> 0:10:07.240 idea is discussed, then you know what's thrown in this 0:10:07.320 --> 0:10:09.320 year is that the world is changing like that. As 0:10:09.320 --> 0:10:12.200 I've said, markets are incredibly bollet ale Um. You know, 0:10:12.360 --> 0:10:16.160 central banks around the world are fighting sort of seemingly 0:10:16.240 --> 0:10:20.520 unpamable inflation, and they do have behind closed doors these 0:10:20.600 --> 0:10:23.520 kind of big picture discussion with a number of speakers 0:10:23.559 --> 0:10:25.720 basically giving their world view. That's kind of what the 0:10:25.720 --> 0:10:28.120 premium access is. You get to get the thoughts of 0:10:28.120 --> 0:10:31.200 the creme de la creme of Wall Street Company executive, 0:10:31.480 --> 0:10:35.360 big thinkers and big thinking for us, we thank you 0:10:35.400 --> 0:10:45.400 for meg, said Ludlow out there on the ground. In 0:10:45.480 --> 0:10:49.680 the US. TikTok spin installed over three and twenty million times, 0:10:49.720 --> 0:10:51.680 and now our next guest is calling on Apple and 0:10:51.679 --> 0:10:54.160 Google to remove that app from the app store, is 0:10:54.200 --> 0:10:57.520 calling it a sophisticated surveillance tool. John us Now as 0:10:57.600 --> 0:11:01.440 SEC Commissioner, Running CAR Commissioner, thank you for joining us. Um. 0:11:03.080 --> 0:11:05.520 Why would you want it removed from the app stores? 0:11:05.600 --> 0:11:08.920 What power do you think that would have? Well, I 0:11:09.000 --> 0:11:11.280 TikTok certainly isn't what it appears to be on the service. 0:11:11.280 --> 0:11:14.120 It's not just another app for sharing plenty of videos 0:11:14.200 --> 0:11:16.920 or memes. That's just the sheep's clothing. It really does 0:11:17.000 --> 0:11:20.160 operate as a sophisticated surveillance to what's pulling all sorts 0:11:20.160 --> 0:11:24.440 of information from UH web browsing, to biometrics like base 0:11:24.520 --> 0:11:29.320 print and voice prints, to location information and some circumstances 0:11:29.360 --> 0:11:32.000 draft messages. So that's a national security concern. But I 0:11:32.040 --> 0:11:34.360 also think it comes into play with Google and apples 0:11:34.400 --> 0:11:37.640 policies to your question, because there's been new revelations, particular 0:11:37.679 --> 0:11:39.760 the last couple of weeks that more data has been 0:11:39.760 --> 0:11:43.040 flowing back to Beijing and previously reported in data flows 0:11:43.040 --> 0:11:45.360 are very important in terms of how the app stores 0:11:45.480 --> 0:11:48.959 allow applications to continue to be on those platforms, and 0:11:49.040 --> 0:11:51.559 so I've said, take a look at your app policies, UH, 0:11:51.559 --> 0:11:54.400 and if these data flows are inconsistent with the representations 0:11:54.440 --> 0:11:56.320 that TikTok has been making, and it seems to be 0:11:56.360 --> 0:11:58.040 that way to me, then they could boot them from 0:11:58.080 --> 0:12:01.480 the app store. You're referencing the reason BuzzFeed piece of course, 0:12:01.520 --> 0:12:04.080 that looked at bite Dance saying it repeatedly access private 0:12:04.080 --> 0:12:07.400 information on US uses despite company assurances to the contrary. 0:12:07.760 --> 0:12:10.680 What data are you assessing to ensure that this is 0:12:10.720 --> 0:12:13.560 factually correct and indeed some of the other accusations that 0:12:13.600 --> 0:12:16.920 you have prior to that. Yeah. So the BuzzFeed news 0:12:16.960 --> 0:12:21.599 story has internal communications from TikTok and bitte Dance officials, 0:12:21.880 --> 0:12:25.200 including ones that say everything can be seen in China, 0:12:25.400 --> 0:12:27.760 and also TikTok itself sent a letter to a number 0:12:27.800 --> 0:12:31.280 of senators on Friday that for the first time indicated 0:12:31.600 --> 0:12:35.360 again a lot of information going back to Beijing. So 0:12:35.520 --> 0:12:38.400 some of their missions themselves, some of those information there 0:12:38.800 --> 0:12:42.000 that was shared in the BuzzFeed article, And the administration, 0:12:42.080 --> 0:12:46.560 through Sippius, an agency group out of Treasury, is also 0:12:46.640 --> 0:12:48.080 taking a look at some of this, and I would 0:12:48.160 --> 0:12:51.080 encourage that Sippius process to move swiftly in light of 0:12:51.120 --> 0:12:57.199 these new revelations. Indeed, overrule the company, TikTok has said 0:12:57.280 --> 0:13:00.079 China based employees can access use at US stay to 0:13:00.640 --> 0:13:04.640 subject to series though of robust cybersecurity controls and authorization 0:13:04.679 --> 0:13:09.080 approval protocols overseen by US bus based security team. The 0:13:09.160 --> 0:13:11.920 CEO has come out saying, look, I'm being very willing 0:13:12.240 --> 0:13:15.080 to engage with lawmakers and indeed what he said is 0:13:15.200 --> 0:13:18.320 set the record straight. According to a spokesperson, have you 0:13:18.360 --> 0:13:20.840 reached out TikTok to the leadership there, have they been 0:13:20.840 --> 0:13:23.000 able to set you straight or at least have a conversation. 0:13:24.520 --> 0:13:26.679 I've not been set straight by TikTok just yet, but 0:13:26.679 --> 0:13:29.440 I'm happy to meet with TikTok officials and engaged directly 0:13:29.600 --> 0:13:31.559 with them on this. I mean, again, there's two sort 0:13:31.600 --> 0:13:34.360 of main functions here. One has been for years they 0:13:34.360 --> 0:13:38.200 were asked directly by government officials. Are officials in Beijing 0:13:38.320 --> 0:13:42.240 accessing private US user data? And every time instead of 0:13:42.280 --> 0:13:44.440 saying yes, but it's not a problem for these reasons, 0:13:44.440 --> 0:13:46.960 they would say, well, all U S data is stored 0:13:47.400 --> 0:13:50.079 in the US, and now we find out that there's 0:13:50.120 --> 0:13:53.440 apparently a tremendous amount of information that was flowing back 0:13:53.480 --> 0:13:55.880 to Beijing, and that's those new protections are going to 0:13:55.920 --> 0:13:58.760 be putting in place. I'm not so sure about that. Again, 0:13:58.760 --> 0:14:02.120 that BuzzFeed News article how a TikTok official saying that 0:14:02.240 --> 0:14:04.800 at the end of the day, these are tools built 0:14:04.920 --> 0:14:07.280 by China and we'll see if they can continue to 0:14:07.280 --> 0:14:09.880 get access even after those controls are put in place. 0:14:09.960 --> 0:14:12.240 So frankly, this comes down to a matter of trust 0:14:12.280 --> 0:14:15.360 and when there's been apparent misrepresentation, but how much data 0:14:15.440 --> 0:14:18.080 is being pulled where it's going for years now. I 0:14:18.120 --> 0:14:20.320 don't have a lot of trust left in TikTok. And 0:14:20.320 --> 0:14:22.000 I'm not alone. There was a member of the Australian 0:14:22.000 --> 0:14:24.000 Parliament that just wrote a letter saying, I see your 0:14:24.320 --> 0:14:26.360 US user data is going to Beijing. I want to 0:14:26.400 --> 0:14:28.840 know is Australia user data going there? So I think 0:14:28.880 --> 0:14:31.680 this is probably broader effort to take a look with 0:14:31.720 --> 0:14:35.200 more scrutiny at the data flows in TikTok. You're one 0:14:35.240 --> 0:14:38.040 of the three FCC commissioners who are appointed under the 0:14:38.040 --> 0:14:40.720 Trump administration. Of course, under the Trump administration we saw 0:14:41.480 --> 0:14:45.400 bands floated of TikTok, but in general, it's not what 0:14:45.840 --> 0:14:48.720 users want. And do you see any sort of middle 0:14:48.720 --> 0:14:51.560 ground here and any assurances that the company could make 0:14:51.600 --> 0:14:56.240 cause some sort of ability to maintain and use hair 0:14:56.280 --> 0:14:58.480 in the US, but ensure that you're not worried about 0:14:58.480 --> 0:15:03.040 information flows. I'm open minded, though obviously I'm skeptical. I 0:15:03.040 --> 0:15:04.880 think step one has to be let's get a full 0:15:05.400 --> 0:15:08.120 airing of the information that did flow before, we talk 0:15:08.200 --> 0:15:12.200 about blessing through some sort of process, additional data flows 0:15:12.240 --> 0:15:14.360 going forward. And you're right, I want of four STEC 0:15:14.400 --> 0:15:16.760 commissioners we can only take official action as a body 0:15:16.800 --> 0:15:18.600 through a vote of the four of US, and so 0:15:18.600 --> 0:15:20.400 we'll see what happens here. But again I think there's 0:15:20.600 --> 0:15:23.200 other agencies that hopefully can be stepping in as well 0:15:23.240 --> 0:15:25.840 with these concerns. Have you had back from alphabet and 0:15:25.840 --> 0:15:29.240 the parent company in Google and uncle's Apple about any 0:15:29.280 --> 0:15:32.040 moves that make on the rap stoles I have, and 0:15:32.120 --> 0:15:34.400 I've asked for a response by July eighth. Then there's 0:15:34.640 --> 0:15:38.480 precedent for those app stores when data has flowed, for instance, 0:15:38.520 --> 0:15:41.320 two servers in China without that being disclosed, to kick 0:15:41.400 --> 0:15:44.080 that app out when there's other surreptitious uses of data 0:15:44.400 --> 0:15:46.720 for them to take action. So I'm open for them 0:15:46.720 --> 0:15:48.200 to tell me, you know, here's why it's a violation 0:15:48.240 --> 0:15:50.200 our policies, or here's why it's not a violation of 0:15:50.200 --> 0:15:52.760 our policies. But the national security question is pretty clear. 0:15:52.760 --> 0:15:56.120 I mean, US military branches have almost all been TikTok 0:15:56.120 --> 0:15:59.440 from their devices. UH, agencies that deal with national security 0:15:59.480 --> 0:16:02.640 have banned them from their devices as well. We warned 0:16:02.960 --> 0:16:04.800 families of US troops not to put it on their 0:16:04.840 --> 0:16:07.640 personal devices either. So there's a lot of concern about 0:16:07.640 --> 0:16:12.280 the national security threats. SEC Commissioner Brandon Carr, we thank you. 0:16:12.320 --> 0:16:14.200 Come back when you perhaps her back from the companies, 0:16:14.200 --> 0:16:16.560 and and indeed let us know if you do manage 0:16:16.600 --> 0:16:18.800 to speak to some of those TikTok executives as well, 0:16:19.080 --> 0:16:30.200 We thank you. Let's talk about deals. Broll com sixty 0:16:30.240 --> 0:16:32.440 one billion dollar deal for vm Ware I was going 0:16:32.480 --> 0:16:35.080 to move forward after a rival bidder failed to emerge 0:16:35.120 --> 0:16:37.280 to break up the deal for the cloud computing company 0:16:37.480 --> 0:16:40.040 during its so called go shop period. That's going into 0:16:40.040 --> 0:16:42.520 people familiar with the matter and the exploration of the 0:16:42.560 --> 0:16:45.360 goo shop gets broad Com past at least one hurdle 0:16:45.640 --> 0:16:49.320 to the biggest ever takeover by semiconductor maker. Representatives for 0:16:49.400 --> 0:16:52.480 vm Ware and broad Colm can immediately be reached for comment. 0:16:53.520 --> 0:16:56.840 The UK or force owners of apps such as social 0:16:56.840 --> 0:17:01.000 media and search engines to curb quote, state innked dis information. 0:17:01.400 --> 0:17:03.760 If they don't, they face fines of as much as 0:17:03.800 --> 0:17:06.880 ten percent of annual global sales. The crackdown is part 0:17:06.880 --> 0:17:10.800 of the forthcoming Online Safety Bill. Meanwhile, the EU IT 0:17:10.920 --> 0:17:13.520 wants to increase the number of tech startups in Europe, 0:17:13.880 --> 0:17:17.480 doing this through the EU Listings app, which is saying 0:17:17.760 --> 0:17:20.119 will make it easier for founders to keep control of 0:17:20.160 --> 0:17:22.879 a firm once it goes public, as well as raising 0:17:22.920 --> 0:17:26.400 some forty five billion in europs. The EU has far 0:17:26.480 --> 0:17:28.600 fewer deep tech firms in the U S and China, 0:17:28.800 --> 0:17:30.920 and the goal is to attract more tech and even 0:17:30.960 --> 0:17:33.680 have them will relocate to Europe, as well as invest 0:17:33.760 --> 0:17:37.040 in women and diverse founders f d x u S 0:17:37.080 --> 0:17:40.200 the crypto exchange co founded by billionaire Sam Magma. Freed 0:17:40.560 --> 0:17:43.040 signs an agreement with Block five that includes an option 0:17:43.080 --> 0:17:44.880 to purchase the crypto lender for as much as two 0:17:45.400 --> 0:17:48.440 million dollars and Bangma Freed spoke exclusively Women in Motion 0:17:48.480 --> 0:17:53.840 aartibasek on Friday. There are synergies between the businesses A 0:17:54.040 --> 0:17:56.560 you know, um, I you know, if you look at 0:17:56.600 --> 0:17:59.199 what what you know Block fay is built out. I 0:17:59.240 --> 0:18:01.800 think they have a loyal customer base. I think, you know, 0:18:02.000 --> 0:18:05.760 they have a real business model. They have a hard 0:18:05.800 --> 0:18:08.800 program that that people love. They's a strong you know, 0:18:08.840 --> 0:18:12.360 they're strong leadership. And I think that we have been 0:18:12.400 --> 0:18:15.920 focusing on a lot of the back end infrastructor right 0:18:16.040 --> 0:18:18.359 on you know, everything from the exchange of matching engine, 0:18:18.680 --> 0:18:23.000 risk engine and everything else. UM and and those match 0:18:23.080 --> 0:18:26.359 up somewhat nicely. And so I think that there are 0:18:26.400 --> 0:18:29.359 a lot of ways that our products can work together 0:18:29.400 --> 0:18:31.360 and can mesh together, um, in a way that's sort 0:18:31.359 --> 0:18:34.479 of better than you know, either would be independently. And 0:18:34.520 --> 0:18:36.879 I will also say that you know, they've been working 0:18:37.119 --> 0:18:42.920 really productively with regulators on you know, building out regulated 0:18:43.440 --> 0:18:47.159 yield products and licensed yield products, which which you know 0:18:47.200 --> 0:18:50.439 we're excited about and excited that they've been doing it 0:18:50.640 --> 0:18:53.720 in a regulated way. I think that's a healthy way 0:18:53.720 --> 0:18:55.400 to do it. And I think that's going to serve 0:18:55.400 --> 0:18:58.920 them well, um, you know, long term um. And it's 0:18:58.960 --> 0:19:01.240 something that you know work Sage work with as well. 0:19:01.359 --> 0:19:04.520 You know you had told political that FTX is looking 0:19:04.560 --> 0:19:07.440 for opportunities to bail out, you know, places where customers 0:19:07.440 --> 0:19:10.359 would otherwise be underwater. But are you worried here about 0:19:10.359 --> 0:19:13.560 moral hazard at all that bailing out a company may 0:19:13.560 --> 0:19:17.159 not actually be what's best for the industry at large. 0:19:18.040 --> 0:19:20.639 It's a good question, and you know, and and guessing 0:19:20.640 --> 0:19:23.280 what you're getting at there is like does that bail 0:19:23.320 --> 0:19:25.919 out a company that really should have failed? And and 0:19:25.960 --> 0:19:29.600 teacher is the wrong lesson to that company? Um? And 0:19:29.960 --> 0:19:31.760 I think what I would say there's two things. First 0:19:31.800 --> 0:19:34.800 of all, I'm way more excited to bail out customers 0:19:34.840 --> 0:19:38.239 than shareholders, right. And so the focus of this is 0:19:38.240 --> 0:19:42.840 not how do we deliver as much shareholder value do 0:19:43.119 --> 0:19:47.080 troubled assets as possible? Right, It's how do we protect customers? 0:19:47.600 --> 0:19:51.160 And I think those imply pretty different things. Um Uh. 0:19:51.440 --> 0:19:53.720 So that that's that's one thing that will say. And 0:19:54.080 --> 0:19:56.320 I think that one of them is way more important 0:19:56.359 --> 0:19:57.960 for the ecosystem, and the other is the one that 0:19:58.000 --> 0:20:02.159 has the biggest moral hazard. Um. The older thing is 0:20:02.200 --> 0:20:06.960 that um uh is that you know, we are trying 0:20:07.000 --> 0:20:11.480 to find who were the responsible players who were building 0:20:11.520 --> 0:20:13.560 out you know, a good business you know, how to 0:20:13.600 --> 0:20:18.600 sustainable model and you know would use short term liquidity 0:20:18.720 --> 0:20:21.760 um and and and that that could help protect customer 0:20:21.840 --> 0:20:26.880 funds built you know, a a a real valuable business 0:20:26.960 --> 0:20:29.960 that I think, um, you know, had something real to 0:20:30.000 --> 0:20:34.160 offer to customers rather than you know, which companies honestly 0:20:34.760 --> 0:20:38.879