WEBVTT - Elon Musk's 'Master Plan' Falls Flat and More Cracks in the Crypto Market

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<v Speaker 1>My from the Bloomberg Interactive Berker Studios is Bloomberg Daybreak

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<v Speaker 1>for Thursday, March second. Coming up today, Tesla shares drop

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<v Speaker 1>as Elon Musk disappoints at an investor meeting, Salesforce shares

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<v Speaker 1>a surge on an upbeat outlook, Credit Suis escalates efforts

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<v Speaker 1>to win back clients, and another crypto firm plunges over

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<v Speaker 1>doubts on its future. I maybe more as New York

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<v Speaker 1>City will settle with hundreds of demonstrators who say they

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<v Speaker 1>were subjected to excessive force, and New Jersey property tax

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<v Speaker 1>rebate checks start going out this month. I'm John Stagshaward

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<v Speaker 1>sports seven straight wins for the Knicks. They blew out

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<v Speaker 1>the nets at the Garden Road winds for the Rangers

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<v Speaker 1>and Devils. That's all straight ahead on Bloomberg day Break,

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<v Speaker 1>The business news you need disturn your day, and just

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<v Speaker 1>one fifteen minute podcast each pointing on Apples, Spotify, the

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<v Speaker 1>Bloomberg Business Appen everywhere you get your podcasts. Good morning,

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<v Speaker 1>I'm Nathan Hager and I'm Cameron Moscow. Here are the

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<v Speaker 1>stories we're following today. We begin with a selloff in

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<v Speaker 1>Tesla shares this morning. They're down more than five percent.

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<v Speaker 1>Elon Musk's much hyped master plan fell flat with Tesla's investors.

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<v Speaker 1>The four hour presentation on Investor Day failed to offer

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<v Speaker 1>any firm detail on the company's next generation of electric cars.

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<v Speaker 1>Musk did, however, Tesla's leadership in artificial intelligence, so as

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<v Speaker 1>we solve real world AI. I don't think there's any

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<v Speaker 1>I don't think there's anyone even close to Tesla unsolving

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<v Speaker 1>real world AI. Elon Musk did confirm a new plant

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<v Speaker 1>in Mexico will build Tesla's next generation of vehicles, but

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<v Speaker 1>he didn't offer details on timing well. The decline in

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<v Speaker 1>Tesla's shares not helping market sentiment. This morning, Nathan stocks

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<v Speaker 1>are lower around the world, and yields on ten year

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<v Speaker 1>treasuries or above four percent for the first time since November.

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<v Speaker 1>More central bankers, like Minneapolis Spent President Neil cash Cary

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<v Speaker 1>are hammering home the message that rates will keep going up.

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<v Speaker 1>I'm open minded at this point about whether it's twenty

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<v Speaker 1>five or fifty. Basis points to me much. What's much

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<v Speaker 1>more important than whether it's twenty five or fifty is

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<v Speaker 1>what we signal in what's called the dot plot. And

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<v Speaker 1>cash carry in. The FED raise rates by twenty five

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<v Speaker 1>basis points at their last meeting. Markets are currently pricing

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<v Speaker 1>in three more hikes of that size. Another note on

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<v Speaker 1>central banks this morning, Karen brings us to the Federal

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<v Speaker 1>Reserve Bank of Chicago. It turns out the search firm

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<v Speaker 1>it hired to find a new president includes the wife

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<v Speaker 1>of Austin Gulsby among its executive Schoolsby was ultimately picked

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<v Speaker 1>for the role. He took over leadership of the bank

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<v Speaker 1>in January and is now a voting member of the FED.

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<v Speaker 1>The Chicago FED spokesperson says, quote, we have every confidence

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<v Speaker 1>in the integrity of the search process. Well in Europe, Nathan,

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<v Speaker 1>looks like rates will continue to go up. BCB president

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<v Speaker 1>Christine Lagard told a Spanish TV show that interest rate

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<v Speaker 1>increases may need to continue beyond a planned half point

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<v Speaker 1>move two weeks from now. Laguard said policymakers will do

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<v Speaker 1>everything to return inflation to their two percent target. And

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<v Speaker 1>following those comments, Karen, we're getting fresh inflation data out

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<v Speaker 1>of the EU, crossing the Bloomberg just moments ago. Euro

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<v Speaker 1>area inflation rows. Last month, consumer prices were up eight

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<v Speaker 1>and a half percent compared to an estimate of eight

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<v Speaker 1>point three percent. While staying in Europe, we're taking a

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<v Speaker 1>close look at Credit Suite this morning. We're learning the

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<v Speaker 1>bank is escalating efforts to win back clients, and we

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<v Speaker 1>get the story live with the Bloomberg's UIN parts in London.

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<v Speaker 1>Good morning, Uen, Good morning Karen and Nathan. If you've

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<v Speaker 1>got five million bucks to deposit, then Credit Suiee wants

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<v Speaker 1>your business. After unprecedented outflows in the latest quarter, Bloomberg

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<v Speaker 1>has learned the Swiss Bank has raised three month rates

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<v Speaker 1>in Asia too, as much as about six and a

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<v Speaker 1>half percent for new money. That's close to one hundred

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<v Speaker 1>basis points more than it was offering in December. It's

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<v Speaker 1>also high the rivals, including Ubs, JP Morgan and Citygroup

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<v Speaker 1>a clear signed Credit Suite wants to rebuild assets in

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<v Speaker 1>the region. In London, I'm you and Potspenbag daybreak, All

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<v Speaker 1>right you and thank you. Back here in the US

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<v Speaker 1>shares of Salesforce, you're up nearly fifteen percent. That's after

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<v Speaker 1>an upbeat forecast for the coming year. We caught up

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<v Speaker 1>with Chairman and CEO Mark Benioff as we really focus

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<v Speaker 1>on our performance, on our profitability on the reprioritization back

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<v Speaker 1>to being a core CRM company. It was really time

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<v Speaker 1>to put the M and A committee on ice and

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<v Speaker 1>just mitigate what we've been doing with M and A

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<v Speaker 1>and let's focus more on our core Mark Benioff's also

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<v Speaker 1>praising activist investors for piling into Salesforce. The CEOs enjoying

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<v Speaker 1>a victory lap with these strong results after those very

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<v Speaker 1>same investors pushed for changes at Salesforce over the past

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<v Speaker 1>few months. Well. We've also been speaking with the CEO

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<v Speaker 1>of Chevron, Nathan Mike Wortz says rising Chinese oil demand

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<v Speaker 1>and dwindling spare capacity around the world may push crewd

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<v Speaker 1>prices higher this year. All the leading indicators would suggest

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<v Speaker 1>that economic activity is picking up, energy demand is picking up,

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<v Speaker 1>and I think as we get into the middle of

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<v Speaker 1>this year and certainly into the second half of these year,

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<v Speaker 1>that demand is likely to tighten markets a little bit.

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<v Speaker 1>Chevron CEO Mike Worretz says China's reopening will provide steady

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<v Speaker 1>demand growth through the year. And checking oil right now,

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<v Speaker 1>nimex screwed oils up half percent or thirty seven cents

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<v Speaker 1>at seventy eight dollars six cents a barrel. Brent is

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<v Speaker 1>up four tents of a percent at eighty four dollars

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<v Speaker 1>sixty four cents. Now, we've been speaking with the CEO

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<v Speaker 1>of coin Base Global, Brian Armstrong, is pushing back at

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<v Speaker 1>SEC efforts to regulate the crypto exchanges so called staking product.

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<v Speaker 1>In coin bass case, our staking product is not a security.

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<v Speaker 1>There's many differences. I mean, we customers never turn over

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<v Speaker 1>their assets to coin Base, for instance, They're always in

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<v Speaker 1>the customer's possession, and we're really just providing a service

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<v Speaker 1>that passes through those coins to help them participate in staking,

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<v Speaker 1>which is a decentralized protocol. Brian Armstrong says Coinbase received

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<v Speaker 1>investigative subpoenas from the SEC about staking. It works by

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<v Speaker 1>letting users generate yields in return for using their tokens

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<v Speaker 1>to facilitate blockchain transactions. Well, staying in the crypto world now, Nathan,

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<v Speaker 1>there are concerns of another crypto firm collapse. Shares of

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<v Speaker 1>Silvergate Capital are plunging on news it's delaying its annual report.

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<v Speaker 1>We get the details live with Bloomberg Steve Rabiport. It's

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<v Speaker 1>Steve Goodman. Good morning, Karen and Nathan's silver stocks sank

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<v Speaker 1>as much as thirty two percent in pre market trading

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<v Speaker 1>after the firm said it's studying its status as a

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<v Speaker 1>growing concern. Silvergate says the delay is necessary to review

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<v Speaker 1>financial controls and to assess the damage from the collapse

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<v Speaker 1>of FTX. Many Silvergate customers pulled out after FTX went

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<v Speaker 1>belly up late last year. The company already reported a

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<v Speaker 1>one billion dollars loss for the fourth quarter and warned

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<v Speaker 1>that number could climb higher. Live in New York, I'm

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<v Speaker 1>Steve Rappaport Bloomberg Daybreak. It's forty degrees in New York.

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<v Speaker 1>It's going to be sunny this afternoon, breezy and milder

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<v Speaker 1>with a high year sixty. Clouds build in tonight. We'll

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<v Speaker 1>get down your thirty five time now to look at

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<v Speaker 1>some of the other stories making news in New York

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<v Speaker 1>and around the world with Bloomberg's Amy Morris. Good morning, Amy,

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<v Speaker 1>Good morning Nathan. New York City advocates are outraged NYPD

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<v Speaker 1>representatives failed to show up at yesterday's oversight hearing. Instead,

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<v Speaker 1>the department submitted written testimony as council members spent hours

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<v Speaker 1>listening to public concerns over the departments Tegic Response Group.

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<v Speaker 1>There's a lot of people here who I wanted to

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<v Speaker 1>talk to, and then I hear I don't understand that

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<v Speaker 1>we have to have this whole bureaucracy to hold them accountable,

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<v Speaker 1>and they don't even show up. In a statement, the

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<v Speaker 1>NYPD wrote that in part, it is committed to changing

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<v Speaker 1>its practices, but opponents say the SRG commits acts of

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<v Speaker 1>violence without being held accountable. Now this after the city

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<v Speaker 1>agreed to pay nearly seven million dollars to more than

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<v Speaker 1>three hundred demonstrators who were mistreated during a twenty twenty

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<v Speaker 1>protest against police violence. The anti protest practice, known as kettling,

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<v Speaker 1>boxed in racial justice demonstrators and then hit them with

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<v Speaker 1>batons and pepper spray. New York City agreed to pay

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<v Speaker 1>twenty one five hundred dollars to each protester involved. Now,

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<v Speaker 1>with the judge approves, it will cost the city between

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<v Speaker 1>four million and six million dollars. Chicago's police chief announced

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<v Speaker 1>his resignation just today after Laurie Lightfoot became the first

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<v Speaker 1>mayor of the third largest US city to lose a

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<v Speaker 1>re election bid in forty years. Police super into David

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<v Speaker 1>Brown says he'll leave his post effective March sixteenth and

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<v Speaker 1>will take a job as the chief operating officer of

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<v Speaker 1>a personal injury law firm. Chicago is faced with rising

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<v Speaker 1>violence that sparked outrage among residents and business leaders. Roughly

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<v Speaker 1>one point seven million homeowners and renters will be benefiting

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<v Speaker 1>from one of the largest tax relief programs in New

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<v Speaker 1>Jersey's history. Yesterday was the deadline for homeowners and renters

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<v Speaker 1>to fill out forms for the Anchor Rebate program. Governor

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<v Speaker 1>Phil Murphy says homeowners with income up to one hundred

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<v Speaker 1>and fifty thousand dollars, we'll receive a fifteen hundred dollars

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<v Speaker 1>rebate in the spring. Renters get a four hundred fifty

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<v Speaker 1>dollars rebate. And SpaceX has launched four astronauts to the

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<v Speaker 1>International Space Station four NASA. The Falcon rocket launched from

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<v Speaker 1>Florida's Kennedy Space Center early this morning. The Dragon capsule

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<v Speaker 1>should reach the space station by tomorrow. Global News twenty

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<v Speaker 1>four hours a day, powered by more than twenty seven

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<v Speaker 1>hundred journalists and analysts in over one hundred twenty countries.

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<v Speaker 1>I'm Amy Morris. This is Bloomberg Nathan, Thank you, Amy.

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<v Speaker 1>Time now far Bloomberg Sports Up. They brought to you

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<v Speaker 1>by Chris stayed Autie. For that, we bring in John

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<v Speaker 1>stash Hour. Thanks Nathan. The Nicks and Nets close to

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<v Speaker 1>each other in the standings, but that's because the Nets

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<v Speaker 1>used to have Kevin Durant Kyrie Irvy. Of course they

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<v Speaker 1>no longer do, and it doesn't appear they'll remain close

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<v Speaker 1>as these two teams are clearly going opposite ways. Nets

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<v Speaker 1>have lost Fournow eight of their last ten. Knicks have

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<v Speaker 1>won their last seven, yet to lose since they made

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<v Speaker 1>that trade to get Josh Hart from Portland. At the Garden,

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<v Speaker 1>it was all Knicks a forty seven point first quarter

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<v Speaker 1>when they shot seventy eight percent eighty two percent on

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<v Speaker 1>three pointers. The final was one forty two to one eighteen.

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<v Speaker 1>Jalen Brunson scored thirty nine points, all but nine came

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<v Speaker 1>in the first half. It he took four shots in

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<v Speaker 1>the second half. Cam Johnson led Brooklyn with thirty three.

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<v Speaker 1>Tomorrow Knight, the Nets go to Boston Celtic's one last

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<v Speaker 1>night over Cleveland. The Knicks will play Tomorrow night in Miami.

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<v Speaker 1>Durant played for the Suns last night for the first

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<v Speaker 1>time back from his knee injury that he's suffered while

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<v Speaker 1>with Brooklyn. He scored twenty three and a Phoenix win

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<v Speaker 1>at Charlotte, Milwaukee won again. That's sixteen wins in a

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<v Speaker 1>row for the Bucks. Rangers in Philadelphia because advantage had

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<v Speaker 1>a first period goal on the power play his thirty second.

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<v Speaker 1>Chris Cryder scored his twenty six. They went to overtime.

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<v Speaker 1>It's played by Hedel the Tarasenko between the circles. Tarrasinco

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<v Speaker 1>fires that scores. Vladimir Tarasenko, his third goal as a Ranger,

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<v Speaker 1>lights the lamp for the Blue Shirts three to two

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<v Speaker 1>victory and overtop ESPN New York had the call. Tarasenko

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<v Speaker 1>a recent acquisition. Patrick Kane an even more recent acquisition.

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<v Speaker 1>Kane will make his Rangers debut tonight at the Garden

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<v Speaker 1>against Ottawa Devil. Seven different goal scorers won seven five

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<v Speaker 1>at Colorado. Fordham lost in overtime at George. Mason started

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<v Speaker 1>the Northeast Conference Tournament season, ending losses for Wagner LYU

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<v Speaker 1>and Saint Francis. Notre Dame upset Pittsburgh. It was the

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<v Speaker 1>last home game for long time Notre Dame coach Mike Bray,

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<v Speaker 1>John Stasheward, Bloomberg Sports Live from coast to host from

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<v Speaker 1>New York to San Francisco, Boston to Washington, DC nationwide

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<v Speaker 1>on Sirius Exam, the Bloomberg Business App, and Bloomberg dot Com.

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<v Speaker 1>This is Bloomberg Daybreak. Good morning. I'm Nathan Hagar. Milon

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<v Speaker 1>Musk has unveiled his third master plan for Tesla, and

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<v Speaker 1>so far, so far, it does not seem to be

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<v Speaker 1>falling too well with investors. Right now, Tesla shares are

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<v Speaker 1>down more than five and a half percent after a

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<v Speaker 1>lot of talk from the gigafactory in Austin about a

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<v Speaker 1>sustainable energy future for the planet, but not much in

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<v Speaker 1>the way of specifics. For more, We're joined by Bloomberg

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<v Speaker 1>Global Autos editor Craig Trudell. Craig, good Morning. Was a

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<v Speaker 1>four hour presentation, and I mean, arguably you could say

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<v Speaker 1>that Tesla did deliver on at least putting out a

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<v Speaker 1>message about the sustainable energy future, because there was certainly

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<v Speaker 1>a lot of talk about that. Yeah, I think the

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<v Speaker 1>beginning of the presentation was definitely heavy on details. There

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<v Speaker 1>sort of calculations of what it's going to take along

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<v Speaker 1>with you know, some hints of of Tesla's role and

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<v Speaker 1>that obviously everyone knows. Uh. You know that that you know,

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<v Speaker 1>they have the cars, they have the battery storage products. Uh.

0:12:15.480 --> 0:12:18.079
<v Speaker 1>There was there was a suggestion that they may get

0:12:18.120 --> 0:12:22.719
<v Speaker 1>into making key pumps for homes. But you know, the

0:12:23.120 --> 0:12:26.760
<v Speaker 1>big news that was sort of anticipated was a next

0:12:26.800 --> 0:12:31.160
<v Speaker 1>generation vehicle that the company has alluded to uh in

0:12:31.200 --> 0:12:34.000
<v Speaker 1>the past few months and really even more than two

0:12:34.080 --> 0:12:36.559
<v Speaker 1>years ago when they held their battery day, they talked about,

0:12:36.600 --> 0:12:39.640
<v Speaker 1>you know, a much cheaper model, a twenty five thousand

0:12:39.640 --> 0:12:44.040
<v Speaker 1>dollar car. Uh. There there was really very little in

0:12:44.320 --> 0:12:47.880
<v Speaker 1>the way of details there, uh, and that you know,

0:12:47.960 --> 0:12:50.680
<v Speaker 1>sort of left left the crowd hanging. I think that

0:12:51.360 --> 0:12:54.080
<v Speaker 1>is the big reason why we're seeing the reaction this morning. Well,

0:12:54.120 --> 0:12:56.839
<v Speaker 1>we're investors expecting too much from an event like this.

0:12:56.960 --> 0:13:00.720
<v Speaker 1>Was this the right venue for analyst to hear about

0:13:00.760 --> 0:13:05.439
<v Speaker 1>things like a lower priced sedan or specifics about Tesla's

0:13:05.600 --> 0:13:09.280
<v Speaker 1>model lineup going forward. I think it's honestly hard to say,

0:13:09.360 --> 0:13:13.599
<v Speaker 1>because you know, you never really know what Musk is

0:13:13.880 --> 0:13:16.840
<v Speaker 1>going to do, right, and and I do think that

0:13:17.320 --> 0:13:19.560
<v Speaker 1>you know, when you sort of tout the event as

0:13:19.600 --> 0:13:25.200
<v Speaker 1>you know, the plan for transitioning the world to sustainable energy,

0:13:25.480 --> 0:13:31.480
<v Speaker 1>you know clearly a low price electric car would play

0:13:31.880 --> 0:13:34.280
<v Speaker 1>a big part in that. And so I do think that,

0:13:34.400 --> 0:13:41.160
<v Speaker 1>you know, the expectation of something on that product was understandable,

0:13:41.720 --> 0:13:45.120
<v Speaker 1>and you know that that helps explain why there there's

0:13:45.440 --> 0:13:48.319
<v Speaker 1>been such a letdown in terms of, you know, how

0:13:48.360 --> 0:13:51.760
<v Speaker 1>the investors are digesting this. It was interesting as well

0:13:52.280 --> 0:13:55.480
<v Speaker 1>during this presentation to see Musk put forward a lot

0:13:55.480 --> 0:13:57.920
<v Speaker 1>of executives, more than a dozen of them, some of

0:13:57.960 --> 0:14:00.720
<v Speaker 1>whom investors have never really seen before. What does that

0:14:00.760 --> 0:14:03.800
<v Speaker 1>say about the leadership at Tesla? Yeah, you know, I

0:14:03.840 --> 0:14:07.679
<v Speaker 1>think that's a very clear response to the criticism that

0:14:07.840 --> 0:14:11.040
<v Speaker 1>Musk has gotten and that the board has gotten about. Uh,

0:14:11.080 --> 0:14:14.559
<v Speaker 1>you know, who's who's behind Musk and what happens to

0:14:14.600 --> 0:14:18.040
<v Speaker 1>this company? You know, if and when he moves on.

0:14:18.840 --> 0:14:22.240
<v Speaker 1>I don't think there's any expectation that you know, he

0:14:22.360 --> 0:14:25.360
<v Speaker 1>wants to leave ut Tesla. But of course we know

0:14:25.800 --> 0:14:29.360
<v Speaker 1>he's stretched awfully thin. He was already running several other

0:14:29.400 --> 0:14:32.960
<v Speaker 1>companies before he acquired Twitter. Uh, and I think he

0:14:33.040 --> 0:14:35.800
<v Speaker 1>provided some fresh evidence of just how distracted he is

0:14:35.840 --> 0:14:39.480
<v Speaker 1>by that company by tweeting during during the presentation when

0:14:39.520 --> 0:14:43.440
<v Speaker 1>some of his executives were speaking, and so, uh, you know,

0:14:43.480 --> 0:14:45.760
<v Speaker 1>I think there was there was clearly an attempt there

0:14:45.800 --> 0:14:49.480
<v Speaker 1>to show uh, you know, some of the talent on

0:14:49.520 --> 0:14:53.080
<v Speaker 1>the bench for for Tesla to sort of address some

0:14:52.920 --> 0:14:56.000
<v Speaker 1>of some of that criticism. So is there anything, Craig

0:14:56.040 --> 0:14:58.960
<v Speaker 1>that you heard from the presentation that investors can hang

0:14:59.000 --> 0:15:02.760
<v Speaker 1>their hats on when it comes to Tesla's immediate plans.

0:15:03.760 --> 0:15:06.240
<v Speaker 1>I think one of the things that was really interesting,

0:15:06.320 --> 0:15:08.000
<v Speaker 1>you know, to the extent they did talk about that

0:15:08.080 --> 0:15:11.320
<v Speaker 1>their next generation vehicle, they've talked about the drive unit

0:15:11.480 --> 0:15:15.680
<v Speaker 1>not using rare earth metals. Since so we've seen uh

0:15:15.920 --> 0:15:20.040
<v Speaker 1>miners of those metals react in a really substantial way

0:15:20.520 --> 0:15:23.360
<v Speaker 1>that that isn't a huge shock. We've heard automakers like

0:15:23.400 --> 0:15:27.200
<v Speaker 1>BMW talk about efforts to get rid of rare earth. Um,

0:15:27.680 --> 0:15:31.160
<v Speaker 1>you know, in addition to uh this being you know,

0:15:31.200 --> 0:15:34.920
<v Speaker 1>sort of a dirty process mining those they're expensive and

0:15:34.920 --> 0:15:37.360
<v Speaker 1>and uh you know rare is in the name, right,

0:15:37.400 --> 0:15:41.320
<v Speaker 1>and so uh it's not necessarily a shocker that they're

0:15:41.320 --> 0:15:44.960
<v Speaker 1>going in that direction, but uh, definitely, um, you know,

0:15:45.080 --> 0:15:48.360
<v Speaker 1>judging from the reaction and shares of those companies that

0:15:48.400 --> 0:15:50.640
<v Speaker 1>came as a bit of a surprise. I think they

0:15:50.640 --> 0:15:55.280
<v Speaker 1>also interestingly talked about, uh, you know, lithium refining and

0:15:55.280 --> 0:15:58.160
<v Speaker 1>and sort of their reluctance to get into the business

0:15:58.240 --> 0:16:00.680
<v Speaker 1>of mining lithium if they can have avoid it, but

0:16:00.880 --> 0:16:03.520
<v Speaker 1>that they do see you know, real sort of stress

0:16:03.600 --> 0:16:07.720
<v Speaker 1>in the refining space and that they're going to jump

0:16:07.720 --> 0:16:10.880
<v Speaker 1>into that to help play a role in sort of

0:16:10.920 --> 0:16:16.160
<v Speaker 1>sorting out that bottleneck. This is Bloomberg Daybreak Today, your

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