WEBVTT - Crypto’s $1 Billion Wipeout, EU Moscow Talks Warning, Litigation Finance Falters

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news.

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<v Speaker 2>This is the Bloomberg Day baq At podcast. Good morning,

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<v Speaker 2>It's Tuesday, the second of December. I'm Caroline Hepka in

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<v Speaker 2>London and.

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<v Speaker 1>I'm Stephen Caroline Brussels. Coming up today. Crypto's deepening down

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<v Speaker 1>turn wipes out almost a billion dollars in leveraged bets

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<v Speaker 1>as retail investors get stung.

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<v Speaker 2>The EU warns the US against forcing a lopsided peace

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<v Speaker 2>plan on Ukraine as Steve Whitkoff heads to Moscow.

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<v Speaker 1>Plus the verdict is in litigation. Finance hits a wall

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<v Speaker 1>as bets on huge gains falter. We have a special report.

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<v Speaker 2>Let's start with a roundup of our top stories.

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<v Speaker 1>Almost one billion dollars of leverage crypto positions were liquidated

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<v Speaker 1>during another sharp drop in prices yesterday. Bitcoin slid by

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<v Speaker 1>as much as eight percent, bring its declines since early

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<v Speaker 1>October to almost thirty percent, before recovering in early trading today.

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<v Speaker 1>The volatile moves have hit retail traders particularly hard, as

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<v Speaker 1>dip bars have failed to materialize. Jalik job and Putro,

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<v Speaker 1>managing partner at Future Perfect Ventures, says the market is

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<v Speaker 1>tracking a broader risk of mood.

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<v Speaker 3>The October sell off the crypto sector was due to

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<v Speaker 3>the tariff uncertainty around China. We also saw people taking

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<v Speaker 3>profits when when bitcoin went up to one hundred and

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<v Speaker 3>twenty six thousand, So in the span of three months

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<v Speaker 3>or less than three months, we've seen over a thirty

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<v Speaker 3>percent drop. That being said, I don't see a downward

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<v Speaker 3>spiral because there are going to be people who want

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<v Speaker 3>to get access to the asset.

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<v Speaker 1>Joli Joba Putra speaking there as, traders are now watching

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<v Speaker 1>eighty thousand dollars as the next key support level for bitcoin. Today,

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<v Speaker 1>bitcoin is trading up six tens of one percent, just

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<v Speaker 1>shy of eighty seven thousand dollars.

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<v Speaker 2>US Envoy Steve Whitkoff is traveling to Moscow today for

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<v Speaker 2>talks over Russia's war in Ukraine. This as the EU's

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<v Speaker 2>top diplomat has expressed concern that American attempts to push

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<v Speaker 2>Ukraine into a lopsided peace plan would only encourage Russia's aggression.

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<v Speaker 2>Europe is on edge after an initial twenty eight point

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<v Speaker 2>plan proposed by the US suggested numerous Russia friendly concessions

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<v Speaker 2>from Kiev. Ukrainian President Vlodomizelinski said updated language in the

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<v Speaker 2>latest draft deal looks better, but territory remains the most

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<v Speaker 2>difficult topic. Speaking after a meeting of EU defense ministers

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<v Speaker 2>in Brussels, Kayakala said putting pressure on the weaker side

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<v Speaker 2>is not in anyone's interests.

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<v Speaker 4>Not in the interest of Ukraine, not in the interest

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<v Speaker 4>of European Union, also not in the interests of the

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<v Speaker 4>global overall security, because it's the United Nations chapter that

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<v Speaker 4>says that you can't change for borders by force. If

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<v Speaker 4>this pays off, we will see this elsewhere all around

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<v Speaker 4>the world. Then we see that whoever has the power

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<v Speaker 4>gets to take what they want, which is not good

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<v Speaker 4>for the majority of the countries in the world.

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<v Speaker 2>The EU Representative for Foreign Affairs Kaya kalus There she

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<v Speaker 2>went on to say that the outcome of today's US

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<v Speaker 2>Russia talks will be quote pivotal.

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<v Speaker 1>European defense firms are scrambling for a vital component in

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<v Speaker 1>high tech weapons rare earth minerals, but nimble US rivals

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<v Speaker 1>are scooping them up more quickly. Some estimates suggest European

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<v Speaker 1>suppliers could run dry in the coming months. Boombergs Freddie

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<v Speaker 1>Filstone has more.

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<v Speaker 5>Sources told Bloomberg that US firms are much better at

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<v Speaker 5>securing rare earths than their European counterparts. They have a

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<v Speaker 5>sense of urgency and financial might, and they're more creative

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<v Speaker 5>in how they navigate Beijing's restrictions on supplies. The EU

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<v Speaker 5>is planning to commit at least three and a half

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<v Speaker 5>billion dollars over the next year to help sever its

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<v Speaker 5>dependence on China's raw materials. The funding would be critical

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<v Speaker 5>to securing the military equipment Europe so urgently needs. In London,

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<v Speaker 5>freddie Fulston Bloomberg Radio.

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<v Speaker 2>Taiwan's foreign minister says the dispute between China and Japan

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<v Speaker 2>could drag on for a year. That's after Japanese Prime

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<v Speaker 2>Minister Sanai Takeichi commented on the possible involvement of her

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<v Speaker 2>country's troops if China were to invade Taiwan. Beijing saw

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<v Speaker 2>those comments as crossing a red line. Speaking to Blueberg,

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<v Speaker 2>Taiwan's Linchi R. Lung said his country hopes the two

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<v Speaker 2>sides can resolve their differences.

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<v Speaker 6>Japan has already showed it winness because it's in the

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<v Speaker 6>parliament in a q A session, So let's have some

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<v Speaker 6>big grounds for Beijing site. Maybe you take a I

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<v Speaker 6>think maybe a year to stabilize the.

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<v Speaker 2>Situation, Taiwan's Foreign Minister Lindcha Lung speaking there. Meanwhile, Taiwanese

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<v Speaker 2>President Li ching To has urged Beijing to act like

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<v Speaker 2>a responsible major power. The Foreign Ministry in Beijing didn't

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<v Speaker 2>immediately respond to a request for comment.

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<v Speaker 1>The UK is set to adopt a more pro business

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<v Speaker 1>approach to China. In his annual foreign policy speech, the

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<v Speaker 1>Prime Minister care Starmer said the country's dealings with China

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<v Speaker 1>will have more consequences for the public than any other

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<v Speaker 1>global shift. He added that increased collaboration would not come

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<v Speaker 1>at the cost of safety.

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<v Speaker 7>Our response will not be driven by fear nor softened

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<v Speaker 7>by illusion. It will be grounded in strength, clarity and

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<v Speaker 7>sober realism, in line with our wider international approach, and

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<v Speaker 7>guided by our conviction that strong, purposeful engagement on the

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<v Speaker 7>world stage is the best way, the only way in

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<v Speaker 7>these times to deliver growth and security for the British people.

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<v Speaker 1>Prime Minister Kare Starmer is seeking to draw a line

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<v Speaker 1>under a turbulent period for UK China relations. His remarks

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<v Speaker 1>come ahead of a decision about a controversial new Chinese

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<v Speaker 1>embassy in London, and a potential visit to the country

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<v Speaker 1>next year. According to Starmer, professional and financial services, as

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<v Speaker 1>well as creative and pharmaceutical industries will be key beneficiaries

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<v Speaker 1>of Chinese opportunities, adding the UK Investment Minister is currently

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<v Speaker 1>visiting the country.

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<v Speaker 2>The Chairman of the Office for Budget Responsibility has resigned

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<v Speaker 2>following the premature publication of analysis of the latest UK budget.

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<v Speaker 2>Richard Hughes took responsibility for the error after an investigation

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<v Speaker 2>found the report was leaked due to people entering a

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<v Speaker 2>predictable Internet address. Former director of the Institute for Fiscal

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<v Speaker 2>Studies Paul Johnson says Hughes will be missed.

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<v Speaker 4>It is a shame.

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<v Speaker 8>He was a public servant of real integrity and while

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<v Speaker 8>you had the courage as well to stand up to

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<v Speaker 8>both this government and the last one when they were

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<v Speaker 8>less less than clear about their communication, shall.

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<v Speaker 2>We say, Paul Johnson, speaking there, the document's early release

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<v Speaker 2>marked an unprecedented breach of procedure. Chancellor Rachel Reeves called

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<v Speaker 2>the mistake deeply disappointing. In a resignation letter published on Monday.

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<v Speaker 2>Hughes said that he was certain the OBI, the UK's

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<v Speaker 2>fiscal watchdog, could regain trust quickly despite the failure.

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<v Speaker 1>And those are your top stories on the markets. The

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<v Speaker 1>msciosh Pacific Index two times higher this morning, the nickey

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<v Speaker 1>in Tokyo is flat. The Japanese yen two times weaker

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<v Speaker 1>against the US dollar at one fifty five seventy one.

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<v Speaker 1>After a keenly watched auction of government bonds there drew

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<v Speaker 1>firm demand. European stock futures a tenth higher for eurostocks

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<v Speaker 1>fifty Wall Street features down by a tenth of one

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<v Speaker 1>percent this morning.

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<v Speaker 2>In a moment, we'll bring you more on how that

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<v Speaker 2>route in crypto markets is stinging retail investors, plus why

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<v Speaker 2>litigation finance is having a bad year. But another story

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<v Speaker 2>has caught our writer today. I'm told it's the season

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<v Speaker 2>of indulgence, Stephen, Oh, Is that why?

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<v Speaker 3>Yes?

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<v Speaker 2>Well, perhaps you'd like to indulge in some edible or

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<v Speaker 2>couffable vices. Bloomberg's Kat O'Dell has this lovely list of

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<v Speaker 2>the ultimate foody gifts. Maybe I will wrap up that

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<v Speaker 2>espresso machine. The Breville apparently consistently delivering great coffee gear,

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<v Speaker 2>and they have a new dual boiler espresso machine that

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<v Speaker 2>comes recommended three thousand bucks. Though maybe next year Stephen

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<v Speaker 2>for you.

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<v Speaker 1>Or perhaps you'd like a fancy toaster. I mean, you

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<v Speaker 1>know that's the thing that you just think it's gone

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<v Speaker 1>too far. Now we all need to calm down. So

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<v Speaker 1>there's a new steam toaster from bell Muda, Japanese brand.

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<v Speaker 1>It offers quote a salamander mode that works like a grill.

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<v Speaker 1>That's nearly four hundred dollars and it's called Toaster Pro

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<v Speaker 1>and I feel like for that they probably could have

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<v Speaker 1>come up with a slightly more imaginative name. I quite

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<v Speaker 1>like the bakery scent candle though, that's when I think

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<v Speaker 1>could appeal as well. And apparently there's a big deal

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<v Speaker 1>this year about designer bottles for drinks as well. There's

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<v Speaker 1>a fancy Don Perignon bottle by the Japanese artist Takashi Morikami,

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<v Speaker 1>and also you know, elaborate tequila bottles. It's not just

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<v Speaker 1>what's inside that counts. Apparently now the drink needs to

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<v Speaker 1>look good as well.

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<v Speaker 3>I love it.

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<v Speaker 2>We're going to put a link to one of our

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<v Speaker 2>fantastic Ultimate Foody gift guides in our show notes for you.

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<v Speaker 1>Well, let's turn back to our top story this morning,

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<v Speaker 1>that plunge and crypto assets that we've been monitoring over

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<v Speaker 1>the past number of days. The sell off appears to

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<v Speaker 1>be taking a breather today, but traders are expecting more

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<v Speaker 1>downward pressure. Our Markets Live Executive editor Mark Cudmore joins

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<v Speaker 1>us now for more. Mark. We're used to seeing wild

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<v Speaker 1>swings and crypto prices, but is this different this time,

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<v Speaker 1>given the involvement of ETFs and these levered bets we've

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<v Speaker 1>been talking about.

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<v Speaker 9>I don't think it really is different. You know, at

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<v Speaker 9>its core, bitcoin is constructed to have a boom and

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<v Speaker 9>bus cycle. You know, it's had repeated seventy percent plus corrections,

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<v Speaker 9>and it's constructed to constantly have more. It can't, by construction,

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<v Speaker 9>be stable at high prices. That's because you know, people

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<v Speaker 9>have been convinced kind of in a kind of cult

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<v Speaker 9>like manner to buy and hold rather than to persist.

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<v Speaker 9>You know, tenuously that has any functional purpose. It doesn't

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<v Speaker 9>yield anything. So when it becomes stable at high prices,

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<v Speaker 9>well then there's incentive for the whales and the people

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<v Speaker 9>own a lot to kind of cash out of the margin. Remember,

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<v Speaker 9>it needs always a marginal buyer to get up in

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<v Speaker 9>value because it doesn't yield anything, doesn't produce any earnings.

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<v Speaker 9>So as soon as you get some stability, that just

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<v Speaker 9>engenders the next round of utility volatility in the next collapse,

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<v Speaker 9>and then it falls low enough the people want to

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<v Speaker 9>speculate again, and it goes back into the next boom cycle.

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<v Speaker 9>The only difference is this time is that because you've

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<v Speaker 9>got more instruments attached to it, you know, it affects

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<v Speaker 9>more people. But it's like, you know, does it make

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<v Speaker 9>a big difference if you you know, if people are

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<v Speaker 9>losing money on one roulette machine in one casino or

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<v Speaker 9>in five casinos, it's still that, you know, it's just

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<v Speaker 9>a multiplication effect.

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<v Speaker 2>Okay, your view interesting and clear. Maybe that's yeah about

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<v Speaker 2>the difficulties of bitcoin and what it is to invest

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<v Speaker 2>in it. And I suppose I mean, as you say,

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<v Speaker 2>the cautionary tales may be piling up right Michael Sailor's

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<v Speaker 2>Strategy Inc. Which is one of those vehicles that help

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<v Speaker 2>retail investors get into bitcoin. Does that look like a

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<v Speaker 2>cautionary tail?

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<v Speaker 3>Now?

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<v Speaker 4>Yeah?

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<v Speaker 9>I think you know, at least one that you can

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<v Speaker 9>say around Michael Sailor is that you know, he was

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<v Speaker 9>original in this and kind of led the way, and

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<v Speaker 9>I think I think strategy has a special status because

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<v Speaker 9>of that. But the digital asset treasury companies don't make

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<v Speaker 9>as much sense when it's you know, much easier for

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<v Speaker 9>investors to get into the crypto exposure in many different

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<v Speaker 9>ways like the ETFs you mentioned, so you know it's

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<v Speaker 9>a digital asset treasury company is kind of sem pointless member.

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<v Speaker 9>You're accumulating an asset that yields nothing. You're basically just

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<v Speaker 9>ccumulating a loads of lines in a spreadsheet, and so

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<v Speaker 9>it doesn't really make much sense to have a premium

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<v Speaker 9>for that. So at least Strategy was the originals, the

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<v Speaker 9>kind of the first kind of led the way. It's

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<v Speaker 9>got some status. It's the same way that bitcoin has

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<v Speaker 9>a special status in the crypto community. But I think

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<v Speaker 9>you know that that is a worrying story now. I

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<v Speaker 9>think it's very important they come out the statement yesterday

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<v Speaker 9>they've got a reserve fund to pay their dividends to

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<v Speaker 9>the next camera as a year and a half or

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<v Speaker 9>something that fourteen months is not. But ultimately, you know,

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<v Speaker 9>they're probably going to have to sell crypto down at

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<v Speaker 9>some point. I think it's going to really worry people

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<v Speaker 9>when their stock price falls below their holdings of bitcoin,

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<v Speaker 9>because that stops them able to raise more cash. And

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<v Speaker 9>so I think ultimately it's a very flawed model, even

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<v Speaker 9>if strategy was the original and best of them.

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<v Speaker 1>Mark talk us through this sort of bigger impact of

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<v Speaker 1>the bigger picture of what we're watching in crypto as well.

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<v Speaker 1>Is this a useful proxy for how investors are feeling?

0:12:42.160 --> 0:12:48.840
<v Speaker 9>I think it's an exceptionally good lead indicator of retail sentiment,

0:12:49.640 --> 0:12:51.720
<v Speaker 9>which is obviously a very large part of the community.

0:12:51.760 --> 0:12:55.600
<v Speaker 9>I don't think it's a good guide for institutional sentiment

0:12:55.720 --> 0:12:58.080
<v Speaker 9>or professional sentiment, but I think it's the you know,

0:12:58.160 --> 0:13:01.320
<v Speaker 9>the highest beta and most reactive bit of retail. And

0:13:01.360 --> 0:13:04.240
<v Speaker 9>I think one dynamic, and there's several dynamics to the

0:13:04.240 --> 0:13:07.440
<v Speaker 9>recent decline, but one dynamic is that, you know, because

0:13:07.480 --> 0:13:10.160
<v Speaker 9>this k shaped economy in the US well and also globally,

0:13:10.360 --> 0:13:12.400
<v Speaker 9>we are seeing people get a little bit more squeezed

0:13:12.440 --> 0:13:16.040
<v Speaker 9>and cost of living and unemployment, which is putting pressure

0:13:16.040 --> 0:13:17.680
<v Speaker 9>to exasperate things. Now, I don't want to put too

0:13:17.760 --> 0:13:20.480
<v Speaker 9>much weight in that dynamic that's just feeding to the side,

0:13:20.600 --> 0:13:23.199
<v Speaker 9>but I do think that's why when we see Crypto

0:13:23.240 --> 0:13:26.360
<v Speaker 9>get hurt, we see the other favored retail names get hurt.

0:13:26.400 --> 0:13:28.360
<v Speaker 9>They kind of the momentum stocks, the meme stocks, some

0:13:28.400 --> 0:13:31.439
<v Speaker 9>of the biggest megacap techniques, even though they're solid companies.

0:13:31.640 --> 0:13:35.000
<v Speaker 9>So the direct transmission is kind of very minimal, but

0:13:35.120 --> 0:13:37.800
<v Speaker 9>the guide on retail sentiment is very important. So favored

0:13:37.880 --> 0:13:39.320
<v Speaker 9>names and positions get hurt.

0:13:40.400 --> 0:13:43.240
<v Speaker 2>Yeah, it's going to be very interesting to see whether

0:13:43.320 --> 0:13:47.679
<v Speaker 2>the enthusiasts hold on through another kind of bitcoin route

0:13:47.720 --> 0:13:50.440
<v Speaker 2>to Bitcoin at the moment trading just below eighty seven

0:13:50.520 --> 0:13:52.720
<v Speaker 2>thousand dollars, Mark, Thank you so much for being with

0:13:52.800 --> 0:13:56.280
<v Speaker 2>us as ever our Markets Live Executive editor Mark Cudmore

0:13:56.320 --> 0:14:01.320
<v Speaker 2>shedding a light onto the bitcoin sell off. Stay with us.

0:14:01.520 --> 0:14:04.079
<v Speaker 2>More from Bloomberg Daybaqube coming up after.

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<v Speaker 1>This now, Litigation finances having a bad year after predicting

0:14:09.400 --> 0:14:12.240
<v Speaker 1>huge growth as recently as January of last year. The

0:14:12.240 --> 0:14:16.800
<v Speaker 1>industry which channel's money from investors to lawyers chasing corporate malfeasance,

0:14:17.080 --> 0:14:19.440
<v Speaker 1>it's now finding that hedge funds and other sources of

0:14:19.480 --> 0:14:22.560
<v Speaker 1>capital are pulling back. Are Managing editor for Sustainable Finance,

0:14:22.600 --> 0:14:25.760
<v Speaker 1>Tanzanian Broger joins us now for more Tanzanin. Good morning.

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<v Speaker 1>Let's start with a bit of background on this first.

0:14:28.000 --> 0:14:31.480
<v Speaker 1>How much has this industry been growing in recent years?

0:14:31.920 --> 0:14:34.920
<v Speaker 10>Yeah, good morning. So after the past half decade or so,

0:14:35.040 --> 0:14:37.720
<v Speaker 10>the litigation finance industry has roughly doubled in size to

0:14:37.760 --> 0:14:40.560
<v Speaker 10>about twenty billion dollars this year, so it's still niche,

0:14:40.560 --> 0:14:44.400
<v Speaker 10>but it's definitely seen rapid growth. Now behind that growth,

0:14:44.400 --> 0:14:46.680
<v Speaker 10>you've got a number of factors. One is simply that

0:14:46.720 --> 0:14:49.560
<v Speaker 10>we've become more litigitus in general, with some sectors just

0:14:49.640 --> 0:14:52.400
<v Speaker 10>developing faster than the regulations intended to rain them in,

0:14:52.520 --> 0:14:55.240
<v Speaker 10>so resorting to the courts, resorting to lawsuits has just

0:14:55.240 --> 0:14:59.160
<v Speaker 10>become more normalized. In such cases are often just deeply

0:14:59.200 --> 0:15:03.720
<v Speaker 10>complex and just increasingly difficult to predict in terms of

0:15:03.760 --> 0:15:07.440
<v Speaker 10>how long they might run. So for law firms pursuing litigation,

0:15:07.520 --> 0:15:11.960
<v Speaker 10>it's become just increasingly attractive as an option to have

0:15:12.040 --> 0:15:14.840
<v Speaker 10>the suits that they're litigating backed by third party investors

0:15:14.920 --> 0:15:17.040
<v Speaker 10>rather than having that risk sitting on their own balance sheets.

0:15:17.360 --> 0:15:19.680
<v Speaker 10>And those are pension funds or wealth funds or hedge

0:15:19.680 --> 0:15:23.440
<v Speaker 10>funds who then take on those risks against the promise

0:15:23.480 --> 0:15:25.800
<v Speaker 10>of a really sizable chunk of any winnings.

0:15:26.040 --> 0:15:30.080
<v Speaker 2>What do you think has changed in investors' attitudes and why?

0:15:30.600 --> 0:15:33.280
<v Speaker 10>To a large extent, what's changed is the regulatory and

0:15:33.560 --> 0:15:37.600
<v Speaker 10>legal environment in which litigation finance exists. So in the

0:15:37.640 --> 0:15:41.480
<v Speaker 10>story we list the main ones that's namely a UK

0:15:41.640 --> 0:15:45.360
<v Speaker 10>Civil Justice Council recommendation from June of this year that

0:15:45.440 --> 0:15:49.000
<v Speaker 10>litigation of funders need to be subject to requirements that

0:15:49.200 --> 0:15:54.160
<v Speaker 10>touch on everything from capital adequacy to greater transparency on

0:15:54.200 --> 0:15:56.560
<v Speaker 10>the sources of capital that are getting from outside investors.

0:15:57.320 --> 0:15:59.920
<v Speaker 10>And that then follows on from twenty to twenty three

0:16:00.360 --> 0:16:03.720
<v Speaker 10>UK Supreme Court ruling that really made a difference to

0:16:03.760 --> 0:16:06.280
<v Speaker 10>the potential for financial returns for the industry in that

0:16:06.680 --> 0:16:10.119
<v Speaker 10>profits could no longer be calculated as a percentage of damages,

0:16:10.800 --> 0:16:13.600
<v Speaker 10>but instead would need to be calculated as a multiple

0:16:13.600 --> 0:16:16.280
<v Speaker 10>of costs, essentially which a sort of created an anchor

0:16:16.320 --> 0:16:21.320
<v Speaker 10>that kept the base down. In the US, the industry

0:16:21.360 --> 0:16:24.160
<v Speaker 10>is now worried that lawmakers are considering reviving legislation that

0:16:24.200 --> 0:16:28.000
<v Speaker 10>would introduce a significant tax on profits. And then, finally,

0:16:28.000 --> 0:16:31.960
<v Speaker 10>in the EU, a landmark piece of regulation that lawyers

0:16:32.000 --> 0:16:34.400
<v Speaker 10>had looked to as recently as twenty twenty four as

0:16:34.440 --> 0:16:38.680
<v Speaker 10>an avenue toward more litigation. It's called the Corporate Sustainability

0:16:38.760 --> 0:16:42.680
<v Speaker 10>Due Diligence Directive that's just been dramatically scaled back as

0:16:42.720 --> 0:16:46.000
<v Speaker 10>part of Europe's efforts to simplify its entire regulatory framework

0:16:46.000 --> 0:16:47.360
<v Speaker 10>and enhanced competitiveness.

0:16:47.600 --> 0:16:50.480
<v Speaker 1>So what's the consequence then, of this funding drying up?

0:16:50.880 --> 0:16:53.000
<v Speaker 10>Cases just generally have been dragging on a lot longer

0:16:53.560 --> 0:16:57.320
<v Speaker 10>than many funders that expected, and then even when plaintiffs

0:16:57.680 --> 0:17:00.680
<v Speaker 10>ostensibly win, actually getting the money paid out is in

0:17:00.720 --> 0:17:04.800
<v Speaker 10>some cases proving very difficult. So for example, there's Burford Capital,

0:17:04.840 --> 0:17:09.000
<v Speaker 10>which is the world's largest litigation funder. They won a

0:17:09.080 --> 0:17:11.760
<v Speaker 10>legal fight back in twenty twenty three relating to the

0:17:11.760 --> 0:17:16.280
<v Speaker 10>fallout of the privatization of Argentine oil company YPF, resulting

0:17:16.400 --> 0:17:20.520
<v Speaker 10>in a settlement of sixteen billion dollars, but since then

0:17:20.520 --> 0:17:23.000
<v Speaker 10>they've just faced no end of delays and hurdles and

0:17:23.000 --> 0:17:27.080
<v Speaker 10>actually getting that money paid out. So yeah, capital allocators

0:17:27.080 --> 0:17:29.920
<v Speaker 10>are looking at examples like this and deciding in many

0:17:29.920 --> 0:17:31.800
<v Speaker 10>cases that the risks are just too high.

0:17:32.760 --> 0:17:33.600
<v Speaker 1>And so what we're.

0:17:33.440 --> 0:17:38.159
<v Speaker 10>Seeing is that in some cases, rather than allegating funds

0:17:39.040 --> 0:17:43.119
<v Speaker 10>that litigation funders can preside over with very few strings attached.

0:17:43.119 --> 0:17:47.480
<v Speaker 10>They're being extremely specific and saying only this specific case

0:17:48.119 --> 0:17:50.320
<v Speaker 10>is what they're going to back. And then also in

0:17:50.320 --> 0:17:54.840
<v Speaker 10>some cases we've even seen litigation funders retreating from the

0:17:54.880 --> 0:17:58.520
<v Speaker 10>business entirely and moving more into sort of advisory functions

0:17:58.600 --> 0:18:00.760
<v Speaker 10>because the terms are simply to punishing.

0:18:02.119 --> 0:18:04.879
<v Speaker 1>This is Bloomberg Daybreak Europe, your morning brief on the

0:18:04.920 --> 0:18:08.000
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0:18:08.320 --> 0:18:12.280
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