1 00:00:13,560 --> 00:00:16,479 Speaker 1: I'm Caroline Higher blobgs World headquarters in New York, and 2 00:00:16,520 --> 00:00:19,680 Speaker 1: I med Ludlow in San Francisco. This is Bloomberg Technology 3 00:00:19,720 --> 00:00:22,960 Speaker 1: coming up. Fd x's attorney says substantial amounts of its 4 00:00:23,000 --> 00:00:26,680 Speaker 1: assets have either been stolen or a missing. Today's bankruptcy 5 00:00:26,680 --> 00:00:30,000 Speaker 1: hearing sheds light on ft x groups current priorities after 6 00:00:30,080 --> 00:00:35,000 Speaker 1: mishandling funds and crypto contagion worsens with Genesis warning of 7 00:00:35,080 --> 00:00:39,960 Speaker 1: possible bankruptcy. Now finance CEO c z who's positioning himself 8 00:00:39,960 --> 00:00:42,920 Speaker 1: as the savior of crypto. He's turned to the Middle 9 00:00:42,960 --> 00:00:46,320 Speaker 1: East for cash for a crypto recovery fund, and Zoom's 10 00:00:46,400 --> 00:00:50,320 Speaker 1: chief financial officer joins us to explain its slowest quarterly 11 00:00:50,360 --> 00:00:54,200 Speaker 1: sales growth on record and plans to navigate the economic headwinds. 12 00:00:54,640 --> 00:00:56,480 Speaker 1: But first, let's bring it back closer to our home. 13 00:00:56,560 --> 00:00:59,240 Speaker 1: It's a global story, of course, because it hits across 14 00:00:59,640 --> 00:01:02,800 Speaker 1: the world, the ft X story, and we emerged well 15 00:01:02,880 --> 00:01:06,280 Speaker 1: from the first ft X bankruptcy hearing on Tuesday, and 16 00:01:06,280 --> 00:01:09,039 Speaker 1: it included an attorney representing the firm saying a substantium 17 00:01:09,080 --> 00:01:12,560 Speaker 1: amount of ft x's assets are well missing. I speak 18 00:01:12,600 --> 00:01:15,080 Speaker 1: it all down, but the most, Katie Greifeld shock Oal, 19 00:01:15,240 --> 00:01:17,679 Speaker 1: we're almost becoming numb to it to certain degree, Katie, 20 00:01:17,760 --> 00:01:19,759 Speaker 1: But what did you take away from the first hearing. 21 00:01:20,040 --> 00:01:22,160 Speaker 1: It was the fiery first day, I would say, in 22 00:01:22,200 --> 00:01:24,319 Speaker 1: addition to what you were saying about, you know, the 23 00:01:24,360 --> 00:01:27,800 Speaker 1: assets either being lost or stolen, this back and forth 24 00:01:27,959 --> 00:01:30,959 Speaker 1: on the top fifty biggest creditors, the fact that their 25 00:01:31,040 --> 00:01:34,160 Speaker 1: names are redacted. We don't know who they are. That 26 00:01:34,240 --> 00:01:37,839 Speaker 1: was an interesting storyline for me because it's really unusual 27 00:01:37,920 --> 00:01:41,200 Speaker 1: that actually their names wouldn't be made public. But there 28 00:01:41,200 --> 00:01:44,880 Speaker 1: were at least two groups of crypto creditors. They sent 29 00:01:44,920 --> 00:01:48,680 Speaker 1: their lawyers there. One of those lawyers was protecting or 30 00:01:48,760 --> 00:01:51,840 Speaker 1: were was working for members of that top fifty group, 31 00:01:51,960 --> 00:01:55,240 Speaker 1: really arguing that their identities should be kept secret, and 32 00:01:55,280 --> 00:01:58,800 Speaker 1: for now we know that they're going to remain unidentified. 33 00:01:58,840 --> 00:02:01,320 Speaker 1: That's interesting when you try to map the contagion about 34 00:02:01,640 --> 00:02:04,880 Speaker 1: what more shoes are we waiting to drop. We would 35 00:02:04,920 --> 00:02:07,200 Speaker 1: like to know who's on that list, but it's going 36 00:02:07,280 --> 00:02:11,440 Speaker 1: to remain under wraps for now. Missing assets also a 37 00:02:11,520 --> 00:02:14,760 Speaker 1: debate around the assets and who should be doing what 38 00:02:15,000 --> 00:02:17,560 Speaker 1: about what talk to us about what's happening in parallel 39 00:02:17,560 --> 00:02:21,440 Speaker 1: in the Bahamas, Katie, Well, that's the thing, who actually, 40 00:02:22,040 --> 00:02:25,080 Speaker 1: what court has jurisdiction here is going to handle it. 41 00:02:25,320 --> 00:02:28,480 Speaker 1: That's been a sort of turf turf war that has 42 00:02:28,880 --> 00:02:32,720 Speaker 1: erupted here. We know that for now, these dueling liquidation 43 00:02:32,760 --> 00:02:37,120 Speaker 1: proceedings in the Bahamas, they're going to be transferred to Delaware. 44 00:02:37,680 --> 00:02:39,200 Speaker 1: You're still going to have f t X as US 45 00:02:39,240 --> 00:02:42,440 Speaker 1: restructuring advisors and regulators in the Bahamas. They're going to 46 00:02:42,680 --> 00:02:45,880 Speaker 1: try to work out rules for sharing the information. But 47 00:02:46,240 --> 00:02:48,520 Speaker 1: for right now, again it looks like that's being transferred 48 00:02:48,560 --> 00:02:52,960 Speaker 1: to Delaware. Alright, bloom bows, Katie Greifeld, thank you very much. 49 00:02:53,040 --> 00:02:56,840 Speaker 1: Let's continue the conversation with regular Allagata, CEO of the 50 00:02:56,880 --> 00:03:02,120 Speaker 1: crypto trading platform Falconnects and Raggy. You have a history 51 00:03:02,160 --> 00:03:04,600 Speaker 1: with ft X, which we'll get to, but I first 52 00:03:04,600 --> 00:03:06,960 Speaker 1: want to ask you what are you seeing among your 53 00:03:07,080 --> 00:03:11,160 Speaker 1: user base customer base in crypto markets? What does that 54 00:03:11,240 --> 00:03:14,639 Speaker 1: reflect based on what's happening with ft X in the 55 00:03:14,680 --> 00:03:17,680 Speaker 1: fallout from it? Absolutely? First off, good to be back. 56 00:03:18,200 --> 00:03:21,880 Speaker 1: What we're seeing in the broader customer sentiment is definitely 57 00:03:22,480 --> 00:03:25,639 Speaker 1: the first few weeks were shocked, right because everyone knew 58 00:03:25,639 --> 00:03:28,600 Speaker 1: that al Meda was a counter party on ft X, 59 00:03:28,960 --> 00:03:31,480 Speaker 1: but the lack of separation between these counterparties was a 60 00:03:31,520 --> 00:03:36,480 Speaker 1: huge shock. Now essentially all the customers chatter is all 61 00:03:36,520 --> 00:03:39,240 Speaker 1: about which shoe is going to drop next. So people 62 00:03:39,240 --> 00:03:42,440 Speaker 1: are paying a lot of attention to exchanges specifically, so 63 00:03:42,680 --> 00:03:45,760 Speaker 1: specifically to Asian exchanges. People are doing extended due diligence 64 00:03:45,800 --> 00:03:48,320 Speaker 1: and making sure that things are okay there. But everyone 65 00:03:48,440 --> 00:03:51,600 Speaker 1: is like very cautious at the moment. So your relationship 66 00:03:51,640 --> 00:03:54,720 Speaker 1: with f t X, you did transact to ft X, 67 00:03:55,200 --> 00:03:59,360 Speaker 1: Explain your historical relationship with FTX and where it stands now. 68 00:04:00,480 --> 00:04:03,200 Speaker 1: So we did have Alameter as one of our trading 69 00:04:03,240 --> 00:04:06,720 Speaker 1: parties as we started the business, but a few weeks 70 00:04:06,800 --> 00:04:09,880 Speaker 1: to a month before this entire contagion we stopped. We 71 00:04:09,920 --> 00:04:13,040 Speaker 1: are on the relationships or zero exposure to Alameter. So 72 00:04:13,080 --> 00:04:16,000 Speaker 1: it's one of the largest brokerages on the planet. We 73 00:04:16,120 --> 00:04:18,720 Speaker 1: do work with one of the largest liquidity providers out there, 74 00:04:18,720 --> 00:04:21,320 Speaker 1: which is ft X. We have a small relative to 75 00:04:21,400 --> 00:04:23,960 Speaker 1: our balance sheet position on ft X, but we're in 76 00:04:23,960 --> 00:04:26,920 Speaker 1: a very good place right now. When with drawls were stopped, 77 00:04:27,839 --> 00:04:32,279 Speaker 1: did you have assets on the platform rather, could you 78 00:04:32,320 --> 00:04:34,760 Speaker 1: repeat that again. When with rolls from ft X was stopped, 79 00:04:34,800 --> 00:04:38,520 Speaker 1: where you left with any assets for other counterparties on 80 00:04:38,720 --> 00:04:43,560 Speaker 1: that platform. So if I understand your question correctly, I 81 00:04:43,560 --> 00:04:46,640 Speaker 1: mean about the assets on the platform. So essentially what 82 00:04:47,080 --> 00:04:49,040 Speaker 1: we're going to see is like this is going to 83 00:04:49,080 --> 00:04:54,440 Speaker 1: be an extremely complex legal situation, some multiple jurisdictions, multiple assets, 84 00:04:54,839 --> 00:04:58,160 Speaker 1: multiple regulators involved. So we're all prepared for a very 85 00:04:58,320 --> 00:05:02,159 Speaker 1: long run out legal process. So that is that's what 86 00:05:02,480 --> 00:05:04,839 Speaker 1: us and a lot of our customers are getting up to. 87 00:05:05,640 --> 00:05:08,680 Speaker 1: The second aspect of it is a lot of information 88 00:05:08,760 --> 00:05:12,599 Speaker 1: is missing. Today's hearing was a very good starting point, 89 00:05:13,000 --> 00:05:15,520 Speaker 1: but at the same time we didn't get a lot 90 00:05:15,560 --> 00:05:18,120 Speaker 1: of material information just yet. So what we're seeing in 91 00:05:18,160 --> 00:05:20,880 Speaker 1: the debt markets is are essentially people trading the claims 92 00:05:20,960 --> 00:05:23,480 Speaker 1: is three to five cents on the dollar is where 93 00:05:23,600 --> 00:05:26,359 Speaker 1: things are being priced in at the moment. Okay, but 94 00:05:26,520 --> 00:05:31,400 Speaker 1: any of any assets that you were helping manage and 95 00:05:31,440 --> 00:05:33,880 Speaker 1: move around, were they trapped in any way? Did you 96 00:05:34,240 --> 00:05:38,080 Speaker 1: for your immediate reaction function at your business when withdrawals 97 00:05:38,120 --> 00:05:42,840 Speaker 1: were halted at ft X. So first thing that we 98 00:05:42,839 --> 00:05:47,320 Speaker 1: were looking at is essentially the news flow and all 99 00:05:47,360 --> 00:05:51,039 Speaker 1: the information was quite confusing at the start for everyone, right, 100 00:05:51,279 --> 00:05:54,520 Speaker 1: because it was a shock to the industry. The notion 101 00:05:54,600 --> 00:05:57,120 Speaker 1: that there is a massive liquidity crisis at ft X 102 00:05:57,240 --> 00:05:59,600 Speaker 1: is definitely a surprise to us as well. But at 103 00:05:59,640 --> 00:06:03,360 Speaker 1: the same time, we were well operating within our risk tolerance, 104 00:06:03,839 --> 00:06:05,719 Speaker 1: and that is the advantage of coming to a broker 105 00:06:05,839 --> 00:06:08,400 Speaker 1: versus going directly to an exchange. So we have a 106 00:06:08,440 --> 00:06:12,000 Speaker 1: specified amount of funds that we did not cross at 107 00:06:12,080 --> 00:06:14,360 Speaker 1: f A, fd X or any other exchange that's out there. 108 00:06:14,920 --> 00:06:17,279 Speaker 1: That was the reason why we walked out of this 109 00:06:17,480 --> 00:06:21,680 Speaker 1: with a small position relative to our balance sheet. Can 110 00:06:21,760 --> 00:06:24,960 Speaker 1: you give us any size or scope on how your 111 00:06:25,040 --> 00:06:29,359 Speaker 1: business has been hit by a lack of faith now 112 00:06:29,440 --> 00:06:32,560 Speaker 1: in the industry broadly, a lack of trust now any 113 00:06:32,600 --> 00:06:36,719 Speaker 1: industry broadly. Yeah. SEQ two Q three were record volumes 114 00:06:36,960 --> 00:06:38,919 Speaker 1: with the record number of customers on boarded for the 115 00:06:39,200 --> 00:06:41,719 Speaker 1: for the company. But if you look at the last 116 00:06:41,720 --> 00:06:44,880 Speaker 1: two or three weeks, trust is fundamentally broken and we 117 00:06:44,960 --> 00:06:47,600 Speaker 1: see that. But one of the very interesting data point 118 00:06:47,720 --> 00:06:50,120 Speaker 1: is even within the last two or three weeks, we 119 00:06:50,160 --> 00:06:52,920 Speaker 1: are not seeing a whole lot of customers actually pause 120 00:06:53,360 --> 00:06:56,880 Speaker 1: and go away. You know from the conversations that was surprising. 121 00:06:56,960 --> 00:07:00,360 Speaker 1: That's actually a good news for the sector. The simitely 122 00:07:00,400 --> 00:07:02,440 Speaker 1: there is a lot of doubt. We need to rebuild trust. 123 00:07:02,839 --> 00:07:05,159 Speaker 1: But at the same time, you're not seeing institutions walk 124 00:07:05,200 --> 00:07:08,120 Speaker 1: away completely from the space just yet. What about some 125 00:07:08,200 --> 00:07:10,720 Speaker 1: of the funders of you? Of course Series D you 126 00:07:10,800 --> 00:07:13,800 Speaker 1: announced on social media for example, a hundred and fifty 127 00:07:13,840 --> 00:07:17,000 Speaker 1: million came to you from backers such as Wellington Management, 128 00:07:17,000 --> 00:07:22,440 Speaker 1: Tiger Global. Are those VC backers and crossover funds asking 129 00:07:22,440 --> 00:07:25,320 Speaker 1: you RAGU for more details on your business? Are they 130 00:07:25,320 --> 00:07:30,240 Speaker 1: are asking for perhaps some over because I think reviews 131 00:07:30,280 --> 00:07:33,160 Speaker 1: lost his his ability to he but Carolines are asking 132 00:07:33,560 --> 00:07:37,240 Speaker 1: about your backers, some of your investors, what about them 133 00:07:37,280 --> 00:07:40,080 Speaker 1: losing faith? Have your investors been phoning you and saying 134 00:07:40,160 --> 00:07:43,640 Speaker 1: what is going on? What is our exposure to FDx? Yeah, 135 00:07:43,920 --> 00:07:46,960 Speaker 1: so a lot of investor conversations, especially if you look 136 00:07:47,000 --> 00:07:49,440 Speaker 1: at the roster of investors that were associated with fd X, 137 00:07:49,680 --> 00:07:51,520 Speaker 1: these are some of the biggest names on the planet. 138 00:07:51,960 --> 00:07:54,560 Speaker 1: As a result, there is definitely a lot of confusion 139 00:07:54,840 --> 00:07:57,280 Speaker 1: and chaos in the early days within our investors as well. 140 00:07:57,760 --> 00:08:00,520 Speaker 1: So we did spend a lot of time thinking this 141 00:08:00,640 --> 00:08:03,040 Speaker 1: through with our investors. In terms of our wist limits, 142 00:08:03,240 --> 00:08:06,120 Speaker 1: we walk them through the balance sheet, our approach. The 143 00:08:06,240 --> 00:08:09,600 Speaker 1: good news here is falconect as a company we never 144 00:08:09,720 --> 00:08:13,160 Speaker 1: take directional bets and that was extremely powerful because the 145 00:08:13,200 --> 00:08:16,120 Speaker 1: biggest learning out of the two thousand eight crisis and 146 00:08:16,160 --> 00:08:18,880 Speaker 1: what eventually led to the Walker rule, is if market 147 00:08:18,920 --> 00:08:23,360 Speaker 1: infrastructure companies start taking directional bets, the cascade amplification is 148 00:08:23,400 --> 00:08:25,960 Speaker 1: going to be huge. And for that reason, when we 149 00:08:25,960 --> 00:08:28,600 Speaker 1: started the company, we always were on the principle of 150 00:08:28,640 --> 00:08:32,200 Speaker 1: never take directional bets. That is ultimately where the customers are. 151 00:08:32,520 --> 00:08:37,240 Speaker 1: Investors got comfortable. But all right, Raggy y'all y'alla Gata, 152 00:08:37,400 --> 00:08:40,080 Speaker 1: a CEO and co founder of falcon X, thank you 153 00:08:40,679 --> 00:08:45,240 Speaker 1: coming out. How economic uncertainty is affecting Zoom. This is 154 00:08:45,240 --> 00:08:47,800 Speaker 1: other tech companies are trimming costs. Will talk all about 155 00:08:47,800 --> 00:08:51,320 Speaker 1: that and more with Zooms CFO Kelly Seckelberg. Next this 156 00:08:51,480 --> 00:09:04,200 Speaker 1: is Bloom. Let's talk about the shares of video conferencing 157 00:09:04,240 --> 00:09:07,600 Speaker 1: player Zoom, and they dropped Tuesday after the company recorded 158 00:09:07,600 --> 00:09:09,839 Speaker 1: its slower sales growth on record. Now a number of 159 00:09:09,880 --> 00:09:12,079 Speaker 1: analysts were reacting to all of it, and you've got 160 00:09:12,080 --> 00:09:14,920 Speaker 1: the breakdown. Yeah, it's interesting. I mean some analyst did 161 00:09:14,920 --> 00:09:17,640 Speaker 1: cut price targets. At one point on Tuesday, the stocks 162 00:09:17,640 --> 00:09:20,720 Speaker 1: down more than ten percent. We closed down almost four percent. 163 00:09:20,760 --> 00:09:23,360 Speaker 1: But what was really interesting for me was Morgan Stanley 164 00:09:23,400 --> 00:09:26,120 Speaker 1: maintaining equal weight on the stock price target eighty five 165 00:09:26,120 --> 00:09:29,120 Speaker 1: dollars a share. But they're saying that even though growth 166 00:09:29,480 --> 00:09:31,480 Speaker 1: was better than expected in other ways, it did not 167 00:09:31,640 --> 00:09:34,560 Speaker 1: slow down as much as feared. They can't get rid 168 00:09:34,600 --> 00:09:37,959 Speaker 1: of this narrative around this stock, this bearish narrative about Zoom. 169 00:09:37,960 --> 00:09:40,520 Speaker 1: You and I have been discussing Zoom for what feels 170 00:09:40,559 --> 00:09:43,280 Speaker 1: like a very long time, but in reality goes back 171 00:09:43,320 --> 00:09:45,600 Speaker 1: to just the beginning of the pandemic, when this name 172 00:09:45,880 --> 00:09:49,840 Speaker 1: became a household name. Right. Still really big under performance 173 00:09:49,920 --> 00:09:52,120 Speaker 1: year today, Zoom is one of the great laggards, right, 174 00:09:52,240 --> 00:09:54,400 Speaker 1: especially when we consider some of the names that you 175 00:09:54,400 --> 00:09:57,520 Speaker 1: and I have tracked so closely down almost six year today. 176 00:09:57,559 --> 00:10:00,080 Speaker 1: A big question I've got, how do they return of 177 00:10:00,120 --> 00:10:04,560 Speaker 1: growth now in this genuine post pandemic period. Carrot Let's 178 00:10:04,559 --> 00:10:08,160 Speaker 1: ask woman who knows that the same CFO Kelly Syckleberg 179 00:10:08,160 --> 00:10:10,920 Speaker 1: WU pieces to say, is with us and talk to us, 180 00:10:11,000 --> 00:10:14,880 Speaker 1: Kelly just about the economic headwinds macro as they are. 181 00:10:15,120 --> 00:10:17,600 Speaker 1: How do you as a company navigate that, How do 182 00:10:17,640 --> 00:10:22,199 Speaker 1: you return to growth with your smaller customers in particular. Yeah, 183 00:10:22,280 --> 00:10:24,920 Speaker 1: So we have two segments of our business, as you 184 00:10:24,960 --> 00:10:27,320 Speaker 1: well know. We have the enterprise which is supported by 185 00:10:27,320 --> 00:10:30,400 Speaker 1: our direct organization, and we have the online portion of 186 00:10:30,400 --> 00:10:34,240 Speaker 1: our business. And the enterprise segment is growing well. We 187 00:10:34,400 --> 00:10:38,320 Speaker 1: had twenty year over year growth in Q three And 188 00:10:38,360 --> 00:10:41,480 Speaker 1: this is where you know, we're seeing this transition from 189 00:10:41,520 --> 00:10:45,240 Speaker 1: being a really really killer meeting app that everyone knows 190 00:10:45,280 --> 00:10:47,200 Speaker 1: and loves, as you say, we became known for during 191 00:10:47,200 --> 00:10:52,200 Speaker 1: the pandemic to becoming a platform that really provides all 192 00:10:52,200 --> 00:10:55,920 Speaker 1: of your collaboration and communication needs with Zoom Phone, Zoom 193 00:10:55,960 --> 00:10:58,280 Speaker 1: Contact Center, Zoom One, which is a bundle that brings 194 00:10:58,280 --> 00:11:02,440 Speaker 1: them all together. The area that we are seeing headwinds 195 00:11:02,520 --> 00:11:05,920 Speaker 1: is in our online segment of our business. And this 196 00:11:06,040 --> 00:11:10,280 Speaker 1: is by its nature more international, so much more impacted 197 00:11:10,440 --> 00:11:13,200 Speaker 1: by the strengthening dollar and you know the impact of 198 00:11:13,240 --> 00:11:17,160 Speaker 1: FX and it's having as well as the impact that 199 00:11:17,200 --> 00:11:21,040 Speaker 1: we're seeing in Europe from the war. And then this 200 00:11:21,240 --> 00:11:23,400 Speaker 1: is the area that we're seeing a little bit of 201 00:11:23,559 --> 00:11:27,760 Speaker 1: macro as well. Some of these customers themselves being impacted 202 00:11:28,000 --> 00:11:32,920 Speaker 1: by seeing contractions and thus returning to you know, cost 203 00:11:32,960 --> 00:11:37,840 Speaker 1: cutting potential considerations. We have seen churn in this segment 204 00:11:37,880 --> 00:11:41,400 Speaker 1: of our business returned to pre pandemic levels. It's down 205 00:11:41,440 --> 00:11:45,520 Speaker 1: to three point one per cent. But we're seeing some challenges, 206 00:11:45,600 --> 00:11:47,800 Speaker 1: as I said, headwinds in the new AD and that's 207 00:11:47,800 --> 00:11:50,040 Speaker 1: what we're really focused on and what we need to 208 00:11:50,040 --> 00:11:53,000 Speaker 1: stabilize in order for not to have that dampening effect 209 00:11:53,040 --> 00:11:57,520 Speaker 1: on our long term growth. Your long term growth could 210 00:11:57,600 --> 00:11:59,760 Speaker 1: M n A drive APOD. I think you've told about 211 00:11:59,840 --> 00:12:02,200 Speaker 1: M and in the past, so I guess my question 212 00:12:02,240 --> 00:12:04,520 Speaker 1: to you is how do you use M and A 213 00:12:04,520 --> 00:12:07,360 Speaker 1: as a tool for growth? What kinds of companies will 214 00:12:07,360 --> 00:12:09,520 Speaker 1: help you grow in those areas that are doing better. 215 00:12:10,880 --> 00:12:13,320 Speaker 1: So what we've seen be successful for us in the 216 00:12:13,360 --> 00:12:18,040 Speaker 1: past is acquiring companies that have technology that accelerate our 217 00:12:18,559 --> 00:12:21,760 Speaker 1: building of those technologies. So for example, last year we 218 00:12:21,840 --> 00:12:25,199 Speaker 1: acquired Solving, which brought conversational AI, which is a much 219 00:12:25,240 --> 00:12:29,520 Speaker 1: needed capability into our Zoom contact Center product. We continue 220 00:12:29,559 --> 00:12:32,640 Speaker 1: to look for opportunities like that which accelerate our development. 221 00:12:33,080 --> 00:12:36,880 Speaker 1: We also look for opportunities that could be a compliment 222 00:12:36,920 --> 00:12:39,720 Speaker 1: to us. So you know, we recently announced at zoom 223 00:12:39,760 --> 00:12:44,200 Speaker 1: Topia that we have an email and calendar integration also 224 00:12:44,280 --> 00:12:49,160 Speaker 1: email and calendar services for SMB customers, and that's a 225 00:12:49,200 --> 00:12:52,360 Speaker 1: perfect example of how we're continuing to extend into productivity 226 00:12:52,400 --> 00:12:55,760 Speaker 1: tools and also a perfect opportunity to continue that expansion 227 00:12:55,960 --> 00:12:58,840 Speaker 1: through possible M and A. Let's talk a little bit 228 00:12:59,080 --> 00:13:01,400 Speaker 1: when there's M and A is also let's talk about 229 00:13:01,400 --> 00:13:04,240 Speaker 1: a focus on costs And actually Alice were impressed by 230 00:13:04,360 --> 00:13:06,880 Speaker 1: that cost control, but how much you having to depend 231 00:13:07,280 --> 00:13:10,280 Speaker 1: and look at the future costs of your labor In particular, 232 00:13:10,360 --> 00:13:12,560 Speaker 1: job cuts were hearing from HP just in the last 233 00:13:12,559 --> 00:13:16,560 Speaker 1: hour or so. So zoom by our nature, we have 234 00:13:16,600 --> 00:13:19,600 Speaker 1: always been a very frugal company. We had a very 235 00:13:19,640 --> 00:13:24,840 Speaker 1: interesting situation that during the pandemic, our growth really outpaced 236 00:13:24,960 --> 00:13:28,400 Speaker 1: our ability to hire an invest and we've been very 237 00:13:28,440 --> 00:13:30,920 Speaker 1: focused on the last couple of years of getting caught up. 238 00:13:30,960 --> 00:13:33,600 Speaker 1: There were areas that we needed to invest in, especially 239 00:13:33,720 --> 00:13:37,040 Speaker 1: R and D. We're very close now to reaching our 240 00:13:37,080 --> 00:13:40,680 Speaker 1: long term targets, which means we will think very thoughtfully 241 00:13:40,840 --> 00:13:44,320 Speaker 1: about hiring and investing going forwards in areas that are 242 00:13:44,320 --> 00:13:48,240 Speaker 1: focused on driving innovation, driving growth. But of course we 243 00:13:48,320 --> 00:13:52,120 Speaker 1: want to be ensured that our expenses are not outpacing 244 00:13:52,160 --> 00:13:54,760 Speaker 1: revenue and need to do that in a very measured way. 245 00:13:54,800 --> 00:13:57,840 Speaker 1: And that is exactly the message um that our leadership 246 00:13:57,840 --> 00:14:00,200 Speaker 1: team has focused on. That we are employeeser for pused 247 00:14:00,240 --> 00:14:04,040 Speaker 1: on it, especially as we're planning for flight twenty four. Kelly, 248 00:14:04,080 --> 00:14:06,880 Speaker 1: I mentioned the stock move tuesday, you know, one point 249 00:14:06,960 --> 00:14:10,840 Speaker 1: down ten percent. All told paid some of those declines, 250 00:14:11,200 --> 00:14:14,160 Speaker 1: but this was the slowest quarter revenue growth you guys 251 00:14:14,160 --> 00:14:17,360 Speaker 1: have recorded. How much pressure do you as a management 252 00:14:17,400 --> 00:14:22,640 Speaker 1: team feel right now? We always talk about this internally. 253 00:14:22,840 --> 00:14:26,280 Speaker 1: What we can control is our own execution, and we 254 00:14:26,440 --> 00:14:30,600 Speaker 1: are aligning our employees around continuing to focus on delivering 255 00:14:30,600 --> 00:14:34,120 Speaker 1: on our customers needs, on building out go to market 256 00:14:34,160 --> 00:14:36,960 Speaker 1: infrastructure where we need it. For example, one of our 257 00:14:37,000 --> 00:14:40,360 Speaker 1: focuses and initiatives is building out our partner ecosystem on 258 00:14:40,400 --> 00:14:45,440 Speaker 1: an international basis, and keeping everybody focused on that rather 259 00:14:45,480 --> 00:14:49,160 Speaker 1: than the stock price is really the message and that's 260 00:14:49,200 --> 00:14:51,080 Speaker 1: what we can control on, So that's what we focus 261 00:14:51,120 --> 00:14:54,720 Speaker 1: on it. Zoom, what about control of the competition and 262 00:14:54,880 --> 00:14:57,120 Speaker 1: of course innovation is to find off some of that. 263 00:14:57,360 --> 00:14:59,960 Speaker 1: Are you hearing from clients that they just have to 264 00:15:00,040 --> 00:15:02,320 Speaker 1: caught the nefle they're going with teams or are you 265 00:15:02,360 --> 00:15:05,200 Speaker 1: hearing that they cannot you know, make the purchase that 266 00:15:05,200 --> 00:15:08,680 Speaker 1: they're estimated in this time. You know, we've been really 267 00:15:08,840 --> 00:15:12,280 Speaker 1: pleased with our renewal rates, especially in the enterprise, as 268 00:15:12,640 --> 00:15:15,680 Speaker 1: I think we are all convinced now that the flexible 269 00:15:15,720 --> 00:15:18,360 Speaker 1: work is here to stay, and so organizations realize in 270 00:15:18,440 --> 00:15:22,320 Speaker 1: order to keep their employees productive and happy, they need 271 00:15:22,360 --> 00:15:25,240 Speaker 1: to provide them the proper technologies, which includes Zoom meeting 272 00:15:25,320 --> 00:15:28,520 Speaker 1: Zoom phones, also ensuring that the proper technology is in 273 00:15:28,560 --> 00:15:32,600 Speaker 1: the rooms. However, you know, they are being very thoughtful 274 00:15:32,760 --> 00:15:37,840 Speaker 1: about those purchases, and so we have a very competitive 275 00:15:37,880 --> 00:15:42,280 Speaker 1: and compelling total cost of ownership. Zoom one is a 276 00:15:42,320 --> 00:15:45,320 Speaker 1: bundle that brings all of our most needed products together 277 00:15:45,520 --> 00:15:48,360 Speaker 1: at a very compelling price point. And so what we 278 00:15:48,440 --> 00:15:52,480 Speaker 1: do see is more scrutiny around deals, but understanding and 279 00:15:52,520 --> 00:15:55,800 Speaker 1: showing how we can create value for customers makes Zoom 280 00:15:55,840 --> 00:15:59,880 Speaker 1: a great alternative even in these environments where my prcf 281 00:16:00,240 --> 00:16:03,760 Speaker 1: are being thoughtful, very very thoughtful about you know, commitments 282 00:16:03,760 --> 00:16:08,520 Speaker 1: and investments for the future. Alright, Zoom CFO Kelly Steckelberg, 283 00:16:08,600 --> 00:16:18,920 Speaker 1: thank you. For joining us here on Bloomberg Technology. EV 284 00:16:19,080 --> 00:16:23,200 Speaker 1: maker Fiska has finally started building its vehicles two years 285 00:16:23,680 --> 00:16:26,760 Speaker 1: after going public. The Ocean SUV just started rolling off 286 00:16:26,800 --> 00:16:31,240 Speaker 1: assembly lines in Austria. It's targeting forty units in year 287 00:16:31,320 --> 00:16:34,800 Speaker 1: one and already has over sixty three thousand reservations. I 288 00:16:34,880 --> 00:16:38,160 Speaker 1: caught up with Henrik Fiske, chairman, CEO and founder of 289 00:16:38,200 --> 00:16:40,960 Speaker 1: Fiske earlier today after he rang the bell at the 290 00:16:41,080 --> 00:16:45,880 Speaker 1: ny SC. I think we actually, in my opinion, are 291 00:16:46,280 --> 00:16:49,960 Speaker 1: maybe just a high point of the recession. I don't 292 00:16:49,960 --> 00:16:51,880 Speaker 1: think they're going into a recession. I think we're in 293 00:16:51,920 --> 00:16:53,840 Speaker 1: the middle of it and getting out of it. And 294 00:16:53,920 --> 00:16:55,920 Speaker 1: I can really feel that when we talked to our 295 00:16:55,920 --> 00:17:00,360 Speaker 1: suppliers to getting people back into their facilities. We have 296 00:17:00,440 --> 00:17:03,000 Speaker 1: had a rough time getting all our suppliers lined up, 297 00:17:03,400 --> 00:17:05,879 Speaker 1: but we managed it. I think together with Magna. Magna 298 00:17:05,960 --> 00:17:09,800 Speaker 1: of course as a powerhouse in the automotive industry, so 299 00:17:09,920 --> 00:17:12,720 Speaker 1: you know, we're taking a kind of cautious approach. We 300 00:17:12,760 --> 00:17:15,560 Speaker 1: are only making three vehicles in Q one next year, 301 00:17:15,960 --> 00:17:19,000 Speaker 1: then jumping really fast up to eight thousand, and the 302 00:17:19,080 --> 00:17:21,160 Speaker 1: reason for the three D because we want to make 303 00:17:21,200 --> 00:17:24,240 Speaker 1: sure all our suppliers come with us, but we actually 304 00:17:24,240 --> 00:17:28,360 Speaker 1: are seeing that our supply chain are very good. It's 305 00:17:28,359 --> 00:17:31,680 Speaker 1: been tough, but they're there and there with us Henrike 306 00:17:33,040 --> 00:17:36,520 Speaker 1: small volume of vehicles. Then in Q one, these vehicles 307 00:17:36,600 --> 00:17:39,199 Speaker 1: coming here to the United States, and how does the 308 00:17:39,280 --> 00:17:43,240 Speaker 1: infrastructure look to service the early customers, how do they 309 00:17:43,280 --> 00:17:47,119 Speaker 1: take delivery? What happens if the car has a servicing issue. 310 00:17:48,200 --> 00:17:50,840 Speaker 1: So we have first of all our own technicians with 311 00:17:51,000 --> 00:17:53,760 Speaker 1: mobile technicians which we can send all over the US. 312 00:17:54,520 --> 00:17:59,000 Speaker 1: We also have a deal with Bridge Down which have 313 00:17:59,480 --> 00:18:02,960 Speaker 1: you know, more than two thousand facilities all over the US, 314 00:18:03,040 --> 00:18:05,399 Speaker 1: so we actually have more service facilities and even some 315 00:18:05,440 --> 00:18:08,520 Speaker 1: of the largest automakers, so we are very well set up. 316 00:18:08,560 --> 00:18:11,640 Speaker 1: We already have a couple of service centers, a special 317 00:18:11,720 --> 00:18:15,920 Speaker 1: power train center in California. If there's any major issues, 318 00:18:16,000 --> 00:18:18,240 Speaker 1: we can bring the vehicle there. But so far, the 319 00:18:18,359 --> 00:18:21,000 Speaker 1: quality I've seen of these vehicles coming off the line 320 00:18:21,000 --> 00:18:23,679 Speaker 1: and Magna is amazing. I've never seen anything like it. 321 00:18:23,680 --> 00:18:26,320 Speaker 1: I've been over thirty years in this industry and I 322 00:18:26,359 --> 00:18:30,399 Speaker 1: feel really good about our product and the quality that 323 00:18:30,480 --> 00:18:33,400 Speaker 1: was Fisker's chairman, CEO and founder Henry Fiske I'm gonna 324 00:18:33,400 --> 00:18:35,760 Speaker 1: tell you, Caroline, I've been writing about that company for 325 00:18:35,800 --> 00:18:39,520 Speaker 1: more than two years. In Monthly Henry Fiske would say November, 326 00:18:40,560 --> 00:18:44,240 Speaker 1: that's when production will start. In to his credit, it did, 327 00:18:45,000 --> 00:18:48,879 Speaker 1: and then the backlog of orders, the production that comes, 328 00:18:49,400 --> 00:18:53,040 Speaker 1: is it actually going to start to be a true competitoriad, Yeah, 329 00:18:53,400 --> 00:18:57,080 Speaker 1: it's impossible to say. Their model rights to outsource manufacturing 330 00:18:57,080 --> 00:19:00,240 Speaker 1: to Magna, a contract manufacturer. And that's why are so 331 00:19:00,280 --> 00:19:02,959 Speaker 1: confident about how many they can build, about why they 332 00:19:02,960 --> 00:19:05,600 Speaker 1: will be able to make it so affordable. And you know, 333 00:19:05,640 --> 00:19:08,000 Speaker 1: you look on the screen there at those pictures, it's 334 00:19:08,040 --> 00:19:10,760 Speaker 1: more in line with what Americans like bigger cars, right, 335 00:19:10,800 --> 00:19:14,040 Speaker 1: But whether it will be successful, it will hit those targets. 336 00:19:14,040 --> 00:19:17,119 Speaker 1: Who knows the world of evs is tricky. Remind me 337 00:19:17,200 --> 00:19:21,000 Speaker 1: the price point. It's about forty U S dollars, which 338 00:19:21,000 --> 00:19:23,240 Speaker 1: if you've got on Tesla's website right now, for example, 339 00:19:23,280 --> 00:19:25,760 Speaker 1: or a riviewan that's nearer to eight tho. That's an 340 00:19:25,800 --> 00:19:28,639 Speaker 1: astonishing price point to commit to. And that's what we 341 00:19:28,720 --> 00:19:31,200 Speaker 1: kept asking him. Or what about supply chains, what about 342 00:19:31,240 --> 00:19:35,520 Speaker 1: input costs? What about semi conductors? He seems unfazed you 343 00:19:35,560 --> 00:19:37,640 Speaker 1: always bring out the best of these people as particularly 344 00:19:37,680 --> 00:19:39,960 Speaker 1: with the long term relationships you have, so he seems 345 00:19:39,960 --> 00:19:41,520 Speaker 1: like quite a character. I'm not sure what the whole 346 00:19:41,520 --> 00:19:44,000 Speaker 1: glove thing was though. Where he rang the bell? Did 347 00:19:44,000 --> 00:19:46,720 Speaker 1: he tell you completely lost on me? It must be 348 00:19:46,760 --> 00:19:58,960 Speaker 1: something to do with electrified magician vibes. Magician vibes, Welcome 349 00:19:59,000 --> 00:20:00,919 Speaker 1: back to Blo meg Technology. M Karine hide in New 350 00:20:01,000 --> 00:20:04,080 Speaker 1: York and ed in San Francisco. We're talking Apple weight 351 00:20:04,400 --> 00:20:06,560 Speaker 1: times to get your hands on the brand new, top 352 00:20:06,600 --> 00:20:09,359 Speaker 1: tier iPhone fourteen Pro, and then they're looking a little 353 00:20:09,400 --> 00:20:12,000 Speaker 1: worrying for analysts ahead of the key hot holiday season. 354 00:20:12,040 --> 00:20:14,600 Speaker 1: Right right, look at the data. If I got on 355 00:20:14,640 --> 00:20:17,520 Speaker 1: Apple's website right now, try and buy myself an iPhone 356 00:20:17,520 --> 00:20:19,760 Speaker 1: fourteen pro or where you are in New York, it 357 00:20:19,760 --> 00:20:22,359 Speaker 1: will tell me the delivery date is December thirty. And 358 00:20:22,359 --> 00:20:25,159 Speaker 1: there's a growing chorus of analysts that are worried that 359 00:20:25,440 --> 00:20:27,760 Speaker 1: either consumers are like, well it's not available right now, 360 00:20:27,800 --> 00:20:30,840 Speaker 1: are wait and that could impact sales for the holiday quarter, 361 00:20:31,080 --> 00:20:33,040 Speaker 1: which could impact the stock. This is a stock that's 362 00:20:33,080 --> 00:20:36,160 Speaker 1: performed just a little better than the SMP five hundred, 363 00:20:36,240 --> 00:20:39,160 Speaker 1: but still down year to day that's really the supply 364 00:20:39,320 --> 00:20:42,200 Speaker 1: side of the story. But the demand side is really 365 00:20:42,240 --> 00:20:46,320 Speaker 1: interesting as well. Ubs Evidence Lab has done it's annual 366 00:20:46,400 --> 00:20:51,080 Speaker 1: global Smartphone consumer survey and it's interesting. Seven thousand respondents 367 00:20:51,119 --> 00:20:56,000 Speaker 1: and survey people surveyed across key markets US, UK, Germany, China, Japan. 368 00:20:56,359 --> 00:20:59,680 Speaker 1: In the U S and China, the number of respondents 369 00:20:59,720 --> 00:21:02,040 Speaker 1: that's said they will buy an iPhone at some point 370 00:21:02,040 --> 00:21:04,480 Speaker 1: in the next twelve months is down around a percentage 371 00:21:04,520 --> 00:21:06,840 Speaker 1: point from the same period last year. But in other 372 00:21:06,880 --> 00:21:10,200 Speaker 1: markets like the UK, like Japan and in Germany, actually 373 00:21:10,320 --> 00:21:13,360 Speaker 1: the number of respondents saying yes affirmatively I will buy 374 00:21:13,359 --> 00:21:15,480 Speaker 1: an iPhone at some point in the next twelve months 375 00:21:15,840 --> 00:21:18,199 Speaker 1: is up. It's really interesting as well to look at 376 00:21:18,200 --> 00:21:22,560 Speaker 1: some of the consumer behavior, especially the installed base age. 377 00:21:22,560 --> 00:21:24,400 Speaker 1: In other words, that's a smart way of saying how 378 00:21:24,440 --> 00:21:28,080 Speaker 1: long consumers holding onto their smartphones. It really crept up 379 00:21:28,359 --> 00:21:31,560 Speaker 1: in the most recent survey to around twenty months. Imagine 380 00:21:31,560 --> 00:21:34,960 Speaker 1: holding onto your smartphone for twenty months. But the reasons 381 00:21:35,000 --> 00:21:38,240 Speaker 1: why are even more informative. Caroline. Why do people upgrade 382 00:21:38,280 --> 00:21:41,480 Speaker 1: their iPhones because the battery is broken or the battery 383 00:21:41,520 --> 00:21:45,399 Speaker 1: life is drained, because it's slow or simply because it's damaged. 384 00:21:45,440 --> 00:21:49,160 Speaker 1: They don't seem motivated by upgrading to the latest handset 385 00:21:49,200 --> 00:21:52,600 Speaker 1: because of the tech, really interesting products watch this holiday season. 386 00:21:52,680 --> 00:21:55,080 Speaker 1: I don't have to imagine twenty months, said I live 387 00:21:55,160 --> 00:21:58,320 Speaker 1: twenty months. I pushed past twenty months. But in fact, 388 00:21:58,880 --> 00:22:01,320 Speaker 1: maybe I'm not going to buy any electronics this holiday season. 389 00:22:01,359 --> 00:22:03,760 Speaker 1: In fact, we came to you our followers on Twitter, 390 00:22:03,840 --> 00:22:07,360 Speaker 1: our audience are engaged audience about what on holiday are 391 00:22:07,359 --> 00:22:09,640 Speaker 1: you wanting? What's your shopping list? What's your Sanders list 392 00:22:09,720 --> 00:22:14,000 Speaker 1: looking like? And actually most people still want experiences. We're 393 00:22:14,000 --> 00:22:16,320 Speaker 1: in this post COVID life where we want to go 394 00:22:16,359 --> 00:22:19,320 Speaker 1: out and enjoy ourselves. Thirty five point five percent of 395 00:22:19,320 --> 00:22:22,720 Speaker 1: you saying that healthy quarter think it's electronics is where 396 00:22:22,760 --> 00:22:25,560 Speaker 1: they want their money to be being put to work, apparel, furnishing. 397 00:22:25,720 --> 00:22:27,879 Speaker 1: Are we stocked up too much in COVID? And clearly 398 00:22:27,920 --> 00:22:30,360 Speaker 1: a few just want cold, hard cash or at least 399 00:22:30,359 --> 00:22:32,680 Speaker 1: a gift version of that and be used to say though, 400 00:22:32,920 --> 00:22:35,080 Speaker 1: ahead of holiday shopping, we want to get a sense 401 00:22:35,119 --> 00:22:37,560 Speaker 1: of how people are spending and whether they're being more 402 00:22:37,560 --> 00:22:40,400 Speaker 1: thrifty or more thoughtful. My name Ourn's with us Head 403 00:22:40,400 --> 00:22:43,239 Speaker 1: of sustainability at eBay and re name what you can 404 00:22:43,240 --> 00:22:45,480 Speaker 1: give us is a really interesting take, particularly of where 405 00:22:45,560 --> 00:22:48,119 Speaker 1: gen z are putting their money to work, because I 406 00:22:48,200 --> 00:22:51,160 Speaker 1: certainly have started to rent more of my items, perhaps 407 00:22:51,440 --> 00:22:54,479 Speaker 1: look for second hand And is that more focused on 408 00:22:54,520 --> 00:22:56,879 Speaker 1: money and a recession worry or is that more focused 409 00:22:56,880 --> 00:22:59,600 Speaker 1: on sustainability in the here and that you know, it's 410 00:22:59,600 --> 00:23:02,600 Speaker 1: really oath. I think that re commerce is selling and 411 00:23:02,640 --> 00:23:06,000 Speaker 1: buying of used and pre loved goods is really a 412 00:23:06,080 --> 00:23:09,000 Speaker 1: dual issue. So people have an opportunity to get online, 413 00:23:09,359 --> 00:23:12,240 Speaker 1: sell things are laying around their house and make a 414 00:23:12,280 --> 00:23:15,439 Speaker 1: profit potentially an extra couple of dollars in their pocket 415 00:23:15,480 --> 00:23:17,720 Speaker 1: as we head into the holiday season. But at the 416 00:23:17,760 --> 00:23:20,639 Speaker 1: same time they're holding the environment. Not only does this 417 00:23:20,720 --> 00:23:23,560 Speaker 1: item get a second life and not go to landfill, 418 00:23:23,920 --> 00:23:27,040 Speaker 1: but you're also helping to avoid additional carbon emissions being 419 00:23:27,040 --> 00:23:29,560 Speaker 1: put in the air, which is really critical when we're 420 00:23:29,560 --> 00:23:31,480 Speaker 1: in a time of a climate crisis. But I what 421 00:23:31,680 --> 00:23:36,159 Speaker 1: all people setting right now. They're selling just about everything 422 00:23:36,160 --> 00:23:41,359 Speaker 1: you mentioned that people wanted and then before um electronics 423 00:23:41,400 --> 00:23:46,160 Speaker 1: of parel, handbags, sporting goods, whatever, whatever you can imagine, 424 00:23:46,520 --> 00:23:48,600 Speaker 1: we have it all on eBay. And people are really 425 00:23:48,600 --> 00:23:52,680 Speaker 1: buying um all those items because they are also contributing 426 00:23:52,720 --> 00:23:55,080 Speaker 1: to the circular economy. It's it's a dual win. It's 427 00:23:55,080 --> 00:23:57,200 Speaker 1: a win for your pocket and so win for the planet. 428 00:23:58,480 --> 00:24:03,719 Speaker 1: Renee eBay story technology name to some people a blast 429 00:24:03,720 --> 00:24:06,800 Speaker 1: from the past, to be fair, but a lot of 430 00:24:06,800 --> 00:24:10,240 Speaker 1: the data that I've read throughout Tuesday suggests actually there 431 00:24:10,320 --> 00:24:13,600 Speaker 1: is a younger audience going to eBay in search of 432 00:24:13,640 --> 00:24:17,040 Speaker 1: goods selling goods. My question is why, you know? Are 433 00:24:17,040 --> 00:24:20,520 Speaker 1: they driven by cost consciousness? Are they driven not so 434 00:24:20,600 --> 00:24:23,800 Speaker 1: much about cost consciousness or value for money? I want 435 00:24:23,840 --> 00:24:26,280 Speaker 1: the bang for my buck. Talk us through the spending 436 00:24:26,280 --> 00:24:30,160 Speaker 1: patterns you're seeing with with the gen Z and millennials, 437 00:24:30,600 --> 00:24:34,040 Speaker 1: they're not having the same stigma attached to buying used, 438 00:24:34,160 --> 00:24:38,200 Speaker 1: buying a pre leve item that maybe my generation did. UM. 439 00:24:38,359 --> 00:24:41,200 Speaker 1: They're seeing that there's there's money to be saved while 440 00:24:41,200 --> 00:24:45,520 Speaker 1: you're participating online in the circular economy. But they're also 441 00:24:45,560 --> 00:24:48,200 Speaker 1: having that added benefit of knowing that they're not contributing 442 00:24:48,280 --> 00:24:51,960 Speaker 1: extra ways to the landfill, They're not contributing um extra 443 00:24:52,040 --> 00:24:56,040 Speaker 1: missions to the atmosphere, and so that circularity of seeing 444 00:24:56,160 --> 00:25:00,400 Speaker 1: us goods being sold and being bought online is really increasing. Um. 445 00:25:00,400 --> 00:25:04,800 Speaker 1: Over fifty of our survey participants said that they're selling 446 00:25:05,000 --> 00:25:08,000 Speaker 1: more used goods online and they have in previous years. 447 00:25:08,000 --> 00:25:10,679 Speaker 1: So we're seeing a real trend here. What are some 448 00:25:10,720 --> 00:25:13,359 Speaker 1: of the weird and wonderful things people are buying? Like 449 00:25:13,520 --> 00:25:18,879 Speaker 1: really weird, really wonderful, really weird and wonderful. There is 450 00:25:18,920 --> 00:25:21,680 Speaker 1: an old story floating around about somebody trying to I 451 00:25:21,840 --> 00:25:24,359 Speaker 1: think sell their soul that that didn't really fly, so 452 00:25:24,760 --> 00:25:28,280 Speaker 1: that got squashed pretty quickly. Um. But the wonderful things 453 00:25:28,280 --> 00:25:31,679 Speaker 1: are these unique finds. There's a teacup that your grandmother 454 00:25:31,960 --> 00:25:33,760 Speaker 1: may have had in a set and it was broken, 455 00:25:34,080 --> 00:25:36,560 Speaker 1: and then that one item is online. You were able 456 00:25:36,560 --> 00:25:38,600 Speaker 1: to match it and bring it back and put it 457 00:25:38,640 --> 00:25:41,320 Speaker 1: with the set that your grandmother had. So there's really 458 00:25:41,359 --> 00:25:44,359 Speaker 1: a lot of opportunity I think on eBay, not just 459 00:25:44,440 --> 00:25:47,359 Speaker 1: for the sellers, but for buyers as well. UM. And 460 00:25:47,400 --> 00:25:50,680 Speaker 1: I'd also like to mention a related issue that we're 461 00:25:50,680 --> 00:25:53,400 Speaker 1: working on right now has to actually do with Congress 462 00:25:53,400 --> 00:25:56,960 Speaker 1: in ten ninety nine K forms, so there's a limit 463 00:25:57,080 --> 00:25:59,960 Speaker 1: right now on selling on eBay and other market place 464 00:26:00,080 --> 00:26:03,240 Speaker 1: says of six hundred dollars and if you sell six 465 00:26:03,320 --> 00:26:05,679 Speaker 1: hundred dollars or more worth of items that could be 466 00:26:05,760 --> 00:26:08,280 Speaker 1: laying around your home, you're going to get this tax 467 00:26:08,320 --> 00:26:12,560 Speaker 1: form come January unless Congress acts now to change this 468 00:26:13,080 --> 00:26:15,879 Speaker 1: threshold and raise it back up somewhere near where it 469 00:26:15,960 --> 00:26:19,480 Speaker 1: used to be. Potentially a year ago was twenty dollars. 470 00:26:19,560 --> 00:26:21,920 Speaker 1: So you can see how this distance and advises the 471 00:26:21,920 --> 00:26:26,240 Speaker 1: potential for re commerce, the potential for selling goods online 472 00:26:26,280 --> 00:26:28,200 Speaker 1: that you can make a couple extra dollars as we 473 00:26:28,320 --> 00:26:32,360 Speaker 1: head into the holiday season. You know, I think, um, 474 00:26:32,400 --> 00:26:34,879 Speaker 1: we really do need Congress to take this seriously and 475 00:26:34,960 --> 00:26:37,840 Speaker 1: take a look out of That's interesting because particularly when 476 00:26:37,840 --> 00:26:41,680 Speaker 1: you have lent into luxury items, you've been focusing on authenticity, 477 00:26:41,760 --> 00:26:44,439 Speaker 1: you've been really leaning into well it's now kind of 478 00:26:44,440 --> 00:26:46,520 Speaker 1: pulled back the whole n f T graze, But the 479 00:26:46,640 --> 00:26:51,119 Speaker 1: focus on sneakers, on collections of just what people wanted 480 00:26:51,200 --> 00:26:53,199 Speaker 1: to buy of collectibles, is that going to be hit 481 00:26:53,240 --> 00:26:55,440 Speaker 1: and what's the price point like as we go into 482 00:26:55,480 --> 00:26:58,560 Speaker 1: this slightly slower economy. I don't think I had the 483 00:26:58,640 --> 00:27:01,240 Speaker 1: data to speak specifically to about christ Coin being the 484 00:27:01,240 --> 00:27:04,919 Speaker 1: sustainability professional that I am, but I can tell you 485 00:27:05,000 --> 00:27:08,280 Speaker 1: though that those luxury items that are being resold are 486 00:27:08,359 --> 00:27:11,440 Speaker 1: just as valuable in terms of avoiding emissions and avoiding 487 00:27:11,480 --> 00:27:14,439 Speaker 1: waste as they're lower end items. The sweater there in 488 00:27:14,480 --> 00:27:18,240 Speaker 1: my closet. The average American household from our last service 489 00:27:18,320 --> 00:27:21,639 Speaker 1: four thousand dollars worth of things in their household that 490 00:27:21,680 --> 00:27:24,640 Speaker 1: they can sell. And now we're heading into the holidays. 491 00:27:24,640 --> 00:27:28,680 Speaker 1: That could be the difference between putting a present under 492 00:27:28,680 --> 00:27:32,120 Speaker 1: the Christmas tree, or exchanging gifts during quanza, or even 493 00:27:32,119 --> 00:27:34,160 Speaker 1: putting the turkey on the table. And so we don't 494 00:27:34,200 --> 00:27:36,720 Speaker 1: want to see this Tenani nine cave form, which is 495 00:27:37,000 --> 00:27:39,920 Speaker 1: could be really confusing and distance and advising to casual 496 00:27:40,000 --> 00:27:43,960 Speaker 1: sellers impact. What what we want to see is participation 497 00:27:44,000 --> 00:27:49,119 Speaker 1: in the circular economy. Okay, eBay Head of sustainability Reneme 498 00:27:49,160 --> 00:27:53,880 Speaker 1: More and thank you. It's pivoting to digital assets are convests. 499 00:27:53,880 --> 00:27:58,040 Speaker 1: CEO Cafe Wood is defending blockchain technology after buying shares 500 00:27:58,080 --> 00:28:00,960 Speaker 1: of coin based this week. His just some of her 501 00:28:00,960 --> 00:28:03,760 Speaker 1: conversation with Carol Massa and Tim stand of It on 502 00:28:03,800 --> 00:28:09,200 Speaker 1: bloom Bug Radio. The infrastructure, the technology has not skipped 503 00:28:09,200 --> 00:28:13,639 Speaker 1: a beat throughout this entire crisis. In fact, the hash 504 00:28:13,760 --> 00:28:17,960 Speaker 1: rate Bitcoin's hash rate is at an all time high, 505 00:28:18,040 --> 00:28:21,040 Speaker 1: and that is a real indication of the security of 506 00:28:21,080 --> 00:28:27,480 Speaker 1: the network. On ethereum, we're seeing the total value uh 507 00:28:28,160 --> 00:28:33,359 Speaker 1: staked at twenty four billion, that is an all time high, 508 00:28:33,400 --> 00:28:38,360 Speaker 1: So we think the infrastructure is working beautifully UM. As 509 00:28:38,400 --> 00:28:44,320 Speaker 1: far as coin base, UH, this is an onshore regulated 510 00:28:44,440 --> 00:28:50,000 Speaker 1: UH company and wanting to help shape regulations. Brian Armstrong 511 00:28:50,080 --> 00:28:54,160 Speaker 1: the CEO, and Alicia uh CFO have been leaning in 512 00:28:54,160 --> 00:28:59,840 Speaker 1: into what's going on right now and saying, Okay, regulators, 513 00:28:59,880 --> 00:29:05,520 Speaker 1: we need more clarity in order to protect to protect investors, 514 00:29:05,560 --> 00:29:09,840 Speaker 1: those who wanted to get involved with a certain types 515 00:29:09,920 --> 00:29:14,440 Speaker 1: of crypto were forced off shore and look at what's happened. 516 00:29:14,520 --> 00:29:18,120 Speaker 1: So UM, I think that coin base is going to 517 00:29:18,200 --> 00:29:22,480 Speaker 1: come out here looking very very strong. It just lost 518 00:29:22,600 --> 00:29:25,720 Speaker 1: a very big competitor in f t X. Well what 519 00:29:25,840 --> 00:29:28,360 Speaker 1: is the market missing though, because you know that could 520 00:29:28,360 --> 00:29:30,800 Speaker 1: be one narrative, Cathy, But at the same time, we 521 00:29:30,840 --> 00:29:33,560 Speaker 1: haven't exactly seen shares of coin based rally since f 522 00:29:33,720 --> 00:29:35,760 Speaker 1: t x is collapse. Do you think to you that 523 00:29:35,880 --> 00:29:39,760 Speaker 1: represents potentially broader concern about just people's interest in crypto 524 00:29:39,800 --> 00:29:43,800 Speaker 1: Following ft x is collapse. No, I think it's more fear. 525 00:29:44,120 --> 00:29:47,040 Speaker 1: I think many people say, we don't know what we 526 00:29:47,120 --> 00:29:50,600 Speaker 1: don't know? Uh and uh So what we do is 527 00:29:50,640 --> 00:29:53,840 Speaker 1: we step back, you know, put a little perspective into 528 00:29:53,840 --> 00:29:56,920 Speaker 1: the situation here, and what do we have. So the 529 00:29:57,120 --> 00:30:02,920 Speaker 1: entire crypto asset ecosystem is an eight hundred billion dollar ecosystem. 530 00:30:03,040 --> 00:30:07,120 Speaker 1: Apple is three times larger in terms of market cap. 531 00:30:07,200 --> 00:30:11,480 Speaker 1: So that's some perspective. Many people are saying, well, okay, 532 00:30:11,560 --> 00:30:14,640 Speaker 1: is this another Lehman? Could this be uh you know, 533 00:30:14,760 --> 00:30:17,920 Speaker 1: could could we see the domino effect here? I've just 534 00:30:18,000 --> 00:30:22,440 Speaker 1: given you one reason why. The banking system back in 535 00:30:22,960 --> 00:30:26,120 Speaker 1: oh eight oh nine trillions and trillions of dollars and 536 00:30:26,160 --> 00:30:30,000 Speaker 1: it was the global banking system. Right now we have 537 00:30:30,320 --> 00:30:34,480 Speaker 1: it seems from f t X five to ten billion 538 00:30:34,560 --> 00:30:39,800 Speaker 1: dollars in creditors. If as uh as f t X 539 00:30:39,960 --> 00:30:44,040 Speaker 1: has filed bankruptcy, they will be making claims. If you 540 00:30:44,040 --> 00:30:47,640 Speaker 1: look at Lehman, that was one point to trillion dollars 541 00:30:47,680 --> 00:30:51,520 Speaker 1: in claims. So again, just trying to put perspective, this 542 00:30:51,640 --> 00:30:57,120 Speaker 1: is fraud. That was all confess Ceo caffe Wood coming 543 00:30:57,200 --> 00:31:01,320 Speaker 1: up more on Crypto the Lads. President John wu discusses 544 00:31:01,360 --> 00:31:04,760 Speaker 1: the crypto contagion and its impact on trust in the 545 00:31:04,760 --> 00:31:22,080 Speaker 1: blockchain ecosystem. This is Bloomberg Crypto News abound. Let's get 546 00:31:22,080 --> 00:31:23,600 Speaker 1: you up to speed what they've been following just this 547 00:31:23,600 --> 00:31:26,560 Speaker 1: week alone, because ftx is attorney told a bankruptcy judge 548 00:31:26,600 --> 00:31:29,520 Speaker 1: that a substantial amount of assets have been stolen or 549 00:31:29,600 --> 00:31:32,400 Speaker 1: indeed a missing in what's been considered quote, one of 550 00:31:32,440 --> 00:31:35,360 Speaker 1: the most abrupt and difficult corporate collapses in the history 551 00:31:35,720 --> 00:31:38,520 Speaker 1: of corporate America. That's according to the new ceo class. 552 00:31:38,520 --> 00:31:41,600 Speaker 1: Bloomberg has learned that the Binance ceo, of course cz 553 00:31:41,800 --> 00:31:44,320 Speaker 1: met with Middle East investors to raise money for his 554 00:31:44,360 --> 00:31:47,200 Speaker 1: crypto recovery funds have been talking about, and of course 555 00:31:47,240 --> 00:31:51,520 Speaker 1: we reported yesterday Genesis warning potential investors it may have 556 00:31:51,640 --> 00:31:54,000 Speaker 1: to file for bankruptcy unless it can raise new money, 557 00:31:54,040 --> 00:31:56,280 Speaker 1: while acknowledging there's a two point eight billion dollar in 558 00:31:56,280 --> 00:31:59,520 Speaker 1: outstanding loans on its banners sheet, including two related parties 559 00:31:59,520 --> 00:32:02,200 Speaker 1: such as well as parent company d c G for 560 00:32:02,240 --> 00:32:04,000 Speaker 1: more on the state of the industry. The person who's 561 00:32:04,000 --> 00:32:05,920 Speaker 1: behind a lot of this breaking news is Shenani Bass 562 00:32:05,920 --> 00:32:09,320 Speaker 1: actually with US and other Labs President John who pleased 563 00:32:09,360 --> 00:32:12,840 Speaker 1: to say is with us as well, and first and foremost, John, 564 00:32:12,920 --> 00:32:16,280 Speaker 1: let's let's talk about how exhausted you are. What is 565 00:32:16,280 --> 00:32:19,000 Speaker 1: it like the sentiment you're in the underlying technology, You're 566 00:32:19,040 --> 00:32:22,440 Speaker 1: about getting new rails for financial for traditional finance to 567 00:32:22,520 --> 00:32:28,200 Speaker 1: run on in a more crypto cryptom, more underlying efficient 568 00:32:28,320 --> 00:32:31,600 Speaker 1: technological manner. Are people being put off coming to at 569 00:32:31,600 --> 00:32:35,400 Speaker 1: the moment a little bit um? I would, I have 570 00:32:35,480 --> 00:32:38,560 Speaker 1: to say, definitely lack of trust. Now in the space, 571 00:32:39,000 --> 00:32:41,320 Speaker 1: there were a lot of people who are already distrustful 572 00:32:41,320 --> 00:32:43,800 Speaker 1: in the space to begin with, and with all of 573 00:32:43,800 --> 00:32:45,960 Speaker 1: these things that the drama that's happened in the last 574 00:32:46,000 --> 00:32:49,360 Speaker 1: few months, they feel like they are gonna equate that 575 00:32:49,400 --> 00:32:52,000 Speaker 1: with the entire space. I'm in the middle. I see 576 00:32:52,040 --> 00:32:53,920 Speaker 1: a lot of activity. I speak to all different types 577 00:32:53,960 --> 00:32:58,360 Speaker 1: of partners, builders, exchanges, market makers. I can tell you 578 00:32:58,440 --> 00:33:01,360 Speaker 1: it's actually really just a small percentage of these people. 579 00:33:01,840 --> 00:33:04,080 Speaker 1: But these small percentage of people have a lot of 580 00:33:04,120 --> 00:33:08,280 Speaker 1: control because they're in large, centralized entities, and these are 581 00:33:08,320 --> 00:33:10,960 Speaker 1: the really the bad actors. Most people are good. Speaking 582 00:33:10,960 --> 00:33:13,400 Speaker 1: of large and centralized that news about f t X 583 00:33:13,560 --> 00:33:18,080 Speaker 1: not disclosing the names of the fifty creditors, the top fifty. 584 00:33:18,120 --> 00:33:20,360 Speaker 1: This is supposed to be an industry about trust. Is 585 00:33:20,360 --> 00:33:23,360 Speaker 1: there a problem here to not know who those top 586 00:33:23,360 --> 00:33:26,800 Speaker 1: fifty creditors are? As a crypto native, I generally believe 587 00:33:26,840 --> 00:33:31,480 Speaker 1: in full transparency and disclosing everything. But in the situation 588 00:33:31,560 --> 00:33:34,600 Speaker 1: we're in right now, I almost feel like not disclosing 589 00:33:34,640 --> 00:33:38,080 Speaker 1: the name is actually good because it could create bank 590 00:33:38,200 --> 00:33:41,840 Speaker 1: runs at some of these places. UM, that's there are 591 00:33:41,840 --> 00:33:46,320 Speaker 1: still operating wealth. Talk to us therefore, about what you 592 00:33:46,360 --> 00:33:48,600 Speaker 1: worry in terms of contagion. You've talked about the lack 593 00:33:48,600 --> 00:33:50,760 Speaker 1: of trust. You talked about the worry of a lack 594 00:33:50,800 --> 00:33:54,040 Speaker 1: of transparency. Everyone is now looking at the exchange they use, 595 00:33:54,200 --> 00:33:56,480 Speaker 1: or or the tokens that some of the exchanges have 596 00:33:56,920 --> 00:34:00,560 Speaker 1: of course issued themselves. It's contagion and the most shoes 597 00:34:00,600 --> 00:34:02,520 Speaker 1: to drop. Do you think so? I think you guys 598 00:34:02,560 --> 00:34:05,880 Speaker 1: are in a great job of covering Genesis. Um in 599 00:34:06,000 --> 00:34:09,280 Speaker 1: my seat, I actually think Genesis is a bigger issue 600 00:34:09,400 --> 00:34:12,280 Speaker 1: in terms of the capital markets of crypto than even 601 00:34:12,320 --> 00:34:15,680 Speaker 1: f t X. Genesis was the largest lender out there. 602 00:34:16,000 --> 00:34:19,680 Speaker 1: They've done unsecure as well as colorized lending. There's really 603 00:34:19,719 --> 00:34:23,040 Speaker 1: no one else doing that lending. They without them in 604 00:34:23,120 --> 00:34:26,080 Speaker 1: the markets, all the people in the value chain, all 605 00:34:26,080 --> 00:34:28,480 Speaker 1: the companies like market makers who need to borrow in 606 00:34:28,600 --> 00:34:31,640 Speaker 1: order to do market making. You're gonna see liquid, you 607 00:34:31,640 --> 00:34:35,320 Speaker 1: get sapped out of the markets, spreads widen, no investors 608 00:34:35,320 --> 00:34:37,160 Speaker 1: want to come in, and you have a vicious cycle. 609 00:34:37,560 --> 00:34:40,720 Speaker 1: So the genesis is a very important part of the 610 00:34:40,760 --> 00:34:44,279 Speaker 1: crypto capital markets. And therefore how much does it set 611 00:34:44,280 --> 00:34:47,720 Speaker 1: it back if we do see a bankruptcy filing, for example, 612 00:34:47,800 --> 00:34:52,239 Speaker 1: by such a juggnal such as Genesis many many years um, 613 00:34:52,520 --> 00:34:56,040 Speaker 1: We're gonna need some white knight to come in, maybe 614 00:34:56,080 --> 00:35:00,320 Speaker 1: a traditional UH finance player who's dabble in this space 615 00:35:00,440 --> 00:35:02,759 Speaker 1: and is willing to come in and take some risk. 616 00:35:03,080 --> 00:35:04,879 Speaker 1: If you look at a lot of things out there 617 00:35:04,920 --> 00:35:08,360 Speaker 1: in terms of instruments that trade, there's clearly a different 618 00:35:08,440 --> 00:35:12,800 Speaker 1: sentiment from the ratified community towards crypto versus the crypto 619 00:35:12,880 --> 00:35:15,120 Speaker 1: native community. And you can look at at the prices 620 00:35:15,360 --> 00:35:18,200 Speaker 1: in terms of the futures curve. The CME futures curve 621 00:35:18,600 --> 00:35:21,160 Speaker 1: is so you know, the out months are really negative 622 00:35:21,320 --> 00:35:24,960 Speaker 1: for bitcoin and etherium, whereas the perpetuals in the crypto 623 00:35:25,080 --> 00:35:29,560 Speaker 1: native markets, which are also undated futures are flatter, so 624 00:35:29,600 --> 00:35:32,240 Speaker 1: it's not backwardation like the What do you think about 625 00:35:32,400 --> 00:35:37,040 Speaker 1: trades like that? You look at that CME futures contract arbitrage, 626 00:35:37,080 --> 00:35:39,520 Speaker 1: you look at what's happening with the great scale big contrast. 627 00:35:39,560 --> 00:35:43,120 Speaker 1: These are financial assets like any other financial asset right now. 628 00:35:43,640 --> 00:35:46,520 Speaker 1: Is it a good money making opportunity or is it 629 00:35:46,600 --> 00:35:51,160 Speaker 1: too risky to trade? It's an incredible arbitrage opportunity that 630 00:35:51,239 --> 00:35:55,960 Speaker 1: you can make, you know, on an annualized basis. But 631 00:35:56,080 --> 00:35:59,000 Speaker 1: the issue really is you can't find a counterpart to 632 00:35:59,000 --> 00:36:02,560 Speaker 1: help you put that trade because nothing is flowing in 633 00:36:02,600 --> 00:36:06,040 Speaker 1: the markets right now. The largest lender out there has 634 00:36:06,080 --> 00:36:08,800 Speaker 1: a trickle ripple effect to everyone else is not lending. 635 00:36:09,120 --> 00:36:13,719 Speaker 1: So if they're not lending, counterparties are not taking risk either. 636 00:36:13,920 --> 00:36:16,439 Speaker 1: What does the crypto market look like without that kind 637 00:36:16,440 --> 00:36:19,640 Speaker 1: of leverage anymore? We go back to the previous cycle. 638 00:36:19,760 --> 00:36:23,279 Speaker 1: We're talking about two thousand fifteen to two thousand eighteen UM. 639 00:36:23,840 --> 00:36:27,319 Speaker 1: Leverage needs to be controlled. Leverage is not bad in 640 00:36:27,440 --> 00:36:32,600 Speaker 1: every economy and every marketplace. You need lending and barring 641 00:36:32,680 --> 00:36:35,439 Speaker 1: to some extent, otherwise you don't have money growth, and 642 00:36:35,760 --> 00:36:37,920 Speaker 1: we need some of that back into this market to 643 00:36:38,000 --> 00:36:42,480 Speaker 1: get the markets going again. I'm interested in this talk 644 00:36:42,520 --> 00:36:46,040 Speaker 1: of a traditional finance giant, maybe a kind of crossover 645 00:36:46,120 --> 00:36:50,520 Speaker 1: investor who's doubled already, who could do that and have 646 00:36:50,680 --> 00:36:55,000 Speaker 1: the will of the regulators, the will of well Washington 647 00:36:55,080 --> 00:36:58,479 Speaker 1: on their side. Well, first of all, I think all 648 00:36:58,560 --> 00:37:01,359 Speaker 1: the existing players and this is all done, I think 649 00:37:02,000 --> 00:37:04,440 Speaker 1: the companies in this current crypto capital markets will be 650 00:37:04,520 --> 00:37:09,120 Speaker 1: gone are still around. Um, they're gonna have to take 651 00:37:09,120 --> 00:37:11,399 Speaker 1: a leadership role. They're gonna work. They need to work 652 00:37:11,400 --> 00:37:14,759 Speaker 1: with regulators and come up with good regulation, even if 653 00:37:14,760 --> 00:37:17,799 Speaker 1: it's bad. Regulation is better than no regulation. And then 654 00:37:17,840 --> 00:37:20,680 Speaker 1: you'll have perhaps banks come in to pick up the 655 00:37:20,719 --> 00:37:23,560 Speaker 1: pieces and by parts of the market structure because they'll 656 00:37:23,600 --> 00:37:26,000 Speaker 1: be more comfortable and they'll inject a lot of liquidity. 657 00:37:26,120 --> 00:37:29,640 Speaker 1: Or you have traditional market makers, whether it's Citadel coming 658 00:37:29,680 --> 00:37:33,040 Speaker 1: in they've dabbled in the citical securities, or a Jain 659 00:37:33,200 --> 00:37:37,000 Speaker 1: Street or well known high frequency funds who are very 660 00:37:37,040 --> 00:37:39,640 Speaker 1: adept in this market market making side. But what about 661 00:37:39,840 --> 00:37:42,600 Speaker 1: the traditional players here we reported this morning for example, 662 00:37:42,640 --> 00:37:46,200 Speaker 1: Apollo is looking to list a digital assets strategy on 663 00:37:46,239 --> 00:37:49,080 Speaker 1: a blockchain. You're doing something similar with a bunch of 664 00:37:49,520 --> 00:37:54,880 Speaker 1: counterparties including KKR. So are they concerned given the broader 665 00:37:54,960 --> 00:37:58,719 Speaker 1: rhetoric around crypto because those tokens, your your blockchain has 666 00:37:58,760 --> 00:38:01,880 Speaker 1: a token as well. Everyone is a little concerned. I 667 00:38:01,920 --> 00:38:04,600 Speaker 1: cannot say no, one's concerned. But with that said, even 668 00:38:04,640 --> 00:38:08,920 Speaker 1: if the capital markets and crypto are broken, the technology 669 00:38:08,960 --> 00:38:13,120 Speaker 1: is still continuing. So Apollo's announcement of raising a fund 670 00:38:13,320 --> 00:38:16,640 Speaker 1: using a tokenized version of that of a labs of 671 00:38:16,680 --> 00:38:20,560 Speaker 1: a launch tokenizing part of a KKR fund really shows 672 00:38:20,600 --> 00:38:23,040 Speaker 1: that the technology and the innovation is going to continue 673 00:38:23,200 --> 00:38:25,760 Speaker 1: and the benefits will accrue to the people who are 674 00:38:25,800 --> 00:38:28,319 Speaker 1: in the space. And it's interesting. One of the conversations 675 00:38:28,320 --> 00:38:30,800 Speaker 1: I had with Mike Cagney, who's the CEO figure about 676 00:38:30,920 --> 00:38:34,040 Speaker 1: this particular announcement, was that stable coins could be an 677 00:38:34,040 --> 00:38:37,360 Speaker 1: onboarding ramp for these private equity funds. Can that happen? 678 00:38:37,520 --> 00:38:39,960 Speaker 1: Is there enough security in the stable coin system as 679 00:38:40,000 --> 00:38:42,960 Speaker 1: it exists today for it to be a feeder essentially 680 00:38:43,080 --> 00:38:46,160 Speaker 1: into the traditional financial system in a bigger way? Well, yes, 681 00:38:46,200 --> 00:38:49,560 Speaker 1: in terms of the security, and that's the ultimate benefit. 682 00:38:49,760 --> 00:38:52,879 Speaker 1: When you have multi parties that need to exchange information 683 00:38:53,200 --> 00:38:58,080 Speaker 1: and payment simultaneously, that's the real benefits of a blotching technology. 684 00:38:58,160 --> 00:39:00,600 Speaker 1: So do you need that token in that sense, whether 685 00:39:00,600 --> 00:39:03,000 Speaker 1: it's a stable coin or a different token, that's the 686 00:39:03,080 --> 00:39:06,480 Speaker 1: real benefits. So you can provide to our cutting costs 687 00:39:06,520 --> 00:39:10,080 Speaker 1: and creating more efficiency in existing financial systems. And let's 688 00:39:10,080 --> 00:39:11,799 Speaker 1: not forget it was just last week that the New 689 00:39:11,880 --> 00:39:14,560 Speaker 1: York Fed was talking about digital dollar and pilots there. 690 00:39:14,600 --> 00:39:17,600 Speaker 1: So there's still innovation to be had. And ave Labs 691 00:39:17,680 --> 00:39:19,600 Speaker 1: president John when we thank him for coming on and 692 00:39:19,640 --> 00:39:21,520 Speaker 1: just talking about the space and where we get some 693 00:39:21,640 --> 00:39:30,720 Speaker 1: sleep Gloomberg Shinnali Bassett as well. All over this story 694 00:39:32,400 --> 00:39:36,000 Speaker 1: going viral. Saudi Arabia scoring one of the biggest World 695 00:39:36,000 --> 00:39:40,600 Speaker 1: Cup upsets ever by beating Luna Messi's Argentina to one 696 00:39:40,719 --> 00:39:43,640 Speaker 1: on Tuesday. Messi gave Argentina an early lead with the 697 00:39:43,640 --> 00:39:46,399 Speaker 1: penalty kick, but Saara Arabia scored two goals within five 698 00:39:46,440 --> 00:39:48,440 Speaker 1: minutes of each other in the second half of their 699 00:39:48,440 --> 00:39:52,319 Speaker 1: clinch victory. Now the Argentina loss has spillover effects into 700 00:39:52,320 --> 00:39:54,520 Speaker 1: crypto as well. You wouldn't believe it, but the Argentina 701 00:39:54,640 --> 00:40:00,160 Speaker 1: fan token offered three partnerships with Socios crashed a quarter cent. 702 00:40:00,160 --> 00:40:02,799 Speaker 1: According to reports that Argentina is among international teams and 703 00:40:02,880 --> 00:40:06,520 Speaker 1: some domestic clubs that offer fan tokens. For example, Portugal's 704 00:40:06,560 --> 00:40:09,560 Speaker 1: token is down ahead of the match against Ghana on Thursday, 705 00:40:09,640 --> 00:40:12,959 Speaker 1: and ed I can't get over the amount of things 706 00:40:12,960 --> 00:40:15,640 Speaker 1: that are going viral around soccer at the moment, or 707 00:40:15,640 --> 00:40:19,239 Speaker 1: football as we would call it. Because Renaldo Ronaldo from 708 00:40:19,239 --> 00:40:23,640 Speaker 1: Man United with five hundred million Instagram followers, he's walking 709 00:40:23,719 --> 00:40:27,160 Speaker 1: and I understand Man United is what considering its options 710 00:40:27,160 --> 00:40:30,760 Speaker 1: for sale. Ronaldo is out of United, it is official. 711 00:40:30,920 --> 00:40:34,520 Speaker 1: And then the owners, the Glazers minority equity owners come 712 00:40:34,520 --> 00:40:36,520 Speaker 1: out and say, yeah, we're looking at options for the club. 713 00:40:36,760 --> 00:40:39,920 Speaker 1: And it's all across Instagram, Twitter, you name it. We 714 00:40:39,920 --> 00:40:41,960 Speaker 1: should be talking about the World Cup on the pitch, 715 00:40:42,239 --> 00:40:44,520 Speaker 1: that's what's happening off it that continues to dominate the 716 00:40:44,560 --> 00:40:48,040 Speaker 1: headlines and what people are talking about on social just extraordinary. 717 00:40:48,160 --> 00:40:51,600 Speaker 1: My entire Twitter, Instagram, whatever wall that you're looking at, 718 00:40:51,760 --> 00:40:55,680 Speaker 1: TikTok is a flood of World Cup news. This man 719 00:40:55,800 --> 00:40:58,239 Speaker 1: owning Instagram of course because amount of followers. That does it. 720 00:40:58,320 --> 00:41:01,040 Speaker 1: For this edition D of Gloomberg Technology Wednesday, We've got 721 00:41:01,080 --> 00:41:04,040 Speaker 1: auto desk Okay, yeah, and check out our podcasts and 722 00:41:04,080 --> 00:41:07,440 Speaker 1: all the platforms you usually go to. This is Bloomberg,