WEBVTT - SEC Approves Bitcoin ETFs, Hertz Selling 20K EVs, Silicon Valley Layoffs 0:00:01.560 --> 0:00:06.360 From Marhard where Innovation, Money and power Collie in Silicon. 0:00:05.960 --> 0:00:06.840 Valley, NBN. 0:00:07.160 --> 0:00:11.200 This is Bloomberg Technology with Caroline Hyde and Ed Ludlove. 0:00:26.280 --> 0:00:28.960 I'm Caroline Heyde a Bloomberg's World headquarters in New York. 0:00:29.160 --> 0:00:31.720 And I'm Met Lolow in San Francisco. This is Bloomberg 0:00:31.760 --> 0:00:33.080 Technology and full. 0:00:32.880 --> 0:00:36.400 Coverage ahead on the SEC's approval of bitcoinyts. What does 0:00:36.400 --> 0:00:38.720 it mean for the one point seven trillion dollar digital 0:00:38.760 --> 0:00:39.560 assets sector? 0:00:39.880 --> 0:00:43.839 Will discuss, and Hertz makes a U turn on its 0:00:43.880 --> 0:00:47.839 ev push as the company announces it's selling twenty thousand 0:00:47.920 --> 0:00:51.159 electric vehicles after overestimating demand. 0:00:51.400 --> 0:00:54.000 Plus the tech industry is kicking off the new year 0:00:54.120 --> 0:00:56.920 with some significant job cuts, will break it all down. 0:00:57.040 --> 0:00:59.240 Let's have a little look what's happening though in the 0:00:59.320 --> 0:01:01.720 asset of today and indeed yesterday. 0:01:01.840 --> 0:01:02.880 We've got to look at bitcoin. 0:01:02.920 --> 0:01:05.039 It has had a volatile trading session, actually at one 0:01:05.080 --> 0:01:09.120 point almost sing that forty nine thousand dollars handle. We're anticipating, 0:01:09.160 --> 0:01:11.720 of course, the adoption RBC saying what fifty to one 0:01:11.800 --> 0:01:15.240 hundred billion dollars of inflows for the first year due 0:01:15.240 --> 0:01:18.560 to these ets, eleven of them of course go live today. 0:01:18.400 --> 0:01:20.160 Ed time for some team coverage. 0:01:20.200 --> 0:01:22.480 Let's break it all down and bring in Bloomberg Shanali 0:01:22.560 --> 0:01:25.199 Bassek and Katie Greifeld and Katie, I want to start 0:01:25.200 --> 0:01:27.399 with you. I guess the question is where do we 0:01:27.480 --> 0:01:31.480 look now for reaction to news. We've shown the equity markets, 0:01:31.560 --> 0:01:34.160 Kara showed her risk asset of choice Bitcoin, but there's 0:01:34.200 --> 0:01:37.240 also some flows data that shows us the story here. 0:01:37.640 --> 0:01:40.400 Specifically, you want to be looking at the trading volume. 0:01:40.480 --> 0:01:42.560 That's what we know right now. We'll get that flow 0:01:42.680 --> 0:01:45.559 data tomorrow theoretically, but you take a look at. 0:01:45.400 --> 0:01:46.880 Who's winning the volume race. 0:01:46.920 --> 0:01:49.000 So far, you have Gray Skill and you have black 0:01:49.120 --> 0:01:52.480 Rock out in front. All told, you've had thirty two 0:01:52.560 --> 0:01:56.560 million shares of GBTC tradeover for Blackrock that comes in 0:01:56.680 --> 0:02:00.240 around twenty six million shares all told. All along, eleven 0:02:00.280 --> 0:02:03.960 of these ETFs all together have traded about two point 0:02:04.000 --> 0:02:07.400 eight almost two point nine billion dollars so far, so 0:02:07.560 --> 0:02:10.400 really a lot of volume on day one for GBDC. 0:02:10.760 --> 0:02:12.960 There is some speculation that this really for a lot 0:02:12.960 --> 0:02:15.839 of investors is the first time that they have had 0:02:15.919 --> 0:02:19.440 a chance to sell. So Bloomberg Intelligence, for example, has 0:02:19.480 --> 0:02:22.280 theorized that maybe that selling pressure for Blackrock. There's a 0:02:22.280 --> 0:02:25.680 lot of speculation out there, whether they preceded this fund, 0:02:25.720 --> 0:02:28.800 whether you're seeing that come through in the trading volumes. 0:02:28.840 --> 0:02:30.320 I asked Ja Jacobs. 0:02:30.040 --> 0:02:33.079 At Blackrock that but an hour and a half ago, 0:02:33.200 --> 0:02:35.200 didn't get much of an answer there, but a lot 0:02:35.200 --> 0:02:37.600 of theories as to what's actually behind this volume. 0:02:37.960 --> 0:02:41.160 And there's the mechanics, there's the infrastructure Shanali. Then there's 0:02:41.480 --> 0:02:44.320 the ultimate view on whether this is really the turning point, 0:02:44.360 --> 0:02:47.639 whether this means mascal adoption, whether suddenly people on their 0:02:47.680 --> 0:02:50.880 iras and their pension funds start just sprinkling in a 0:02:50.880 --> 0:02:52.560 little bit of bitcoin. When we look at the price 0:02:52.600 --> 0:02:54.640 action of the og of crypto, do we think that 0:02:54.720 --> 0:02:55.600 it is well, what's. 0:02:55.480 --> 0:02:58.320 Interesting is you did see trading volume CIVI bilions, as 0:02:58.360 --> 0:02:59.880 you were hearing Katie saying, But when you look at 0:02:59.880 --> 0:03:04.119 the price action in bitcoin itself, it reached forty nine 0:03:04.160 --> 0:03:06.720 thousand very briefly on the day, but it's back well 0:03:06.760 --> 0:03:10.400 below or fluctuating around forty six thousand. So this has 0:03:10.440 --> 0:03:12.240 not been to sell the news moment, nor has it 0:03:12.280 --> 0:03:14.239 been the buy the news moment. Since we have seen 0:03:14.280 --> 0:03:16.880 DCTF start to take off, and even with that announcement 0:03:16.919 --> 0:03:19.760 of trading volumes being significant, you're still not seeing that 0:03:19.800 --> 0:03:21.480 movement in Bitcoin, and in fact, in some of the 0:03:21.480 --> 0:03:24.200 bitcoin related stocks, as I was saying, coin Base being 0:03:24.240 --> 0:03:26.200 down more than six percent. A big question in the 0:03:26.200 --> 0:03:30.680 market is what this means for exchanges, let alone bitcoin itself. Now, 0:03:30.680 --> 0:03:32.840 I will point to one place you are seeing some 0:03:32.880 --> 0:03:35.520 action as ethereum, and I think the reason that's interesting 0:03:35.600 --> 0:03:38.560 is because people believe that if you see a bitcoin 0:03:38.640 --> 0:03:42.160 related spody tf then the issuers, if they are successful, 0:03:42.200 --> 0:03:45.040 will move to other products. Will they move to ethereum? 0:03:45.240 --> 0:03:45.440 Now? 0:03:45.520 --> 0:03:47.960 One thing that's interesting about this is the SEC's owned 0:03:47.960 --> 0:03:52.320 statement which was very clear that this was for one 0:03:52.680 --> 0:03:55.640 asset and one asset alone, Bitcoin and it was not 0:03:55.720 --> 0:03:58.800 an endorsement of the bitcoin world in itself. And so 0:03:59.120 --> 0:04:02.160 you are seeing sparks of exuberance and ethereum that you're 0:04:02.200 --> 0:04:05.280 not seeing the same way in Bitcoin at this moment. 0:04:05.640 --> 0:04:07.400 But is it founded is the question? 0:04:07.800 --> 0:04:11.800 And also sparks of exuberance excitement when it comes to 0:04:11.800 --> 0:04:15.240 an IPO pipeline related to crypto asset circle, the stable 0:04:15.280 --> 0:04:16.120 coin issue, what do. 0:04:16.120 --> 0:04:19.279 We learn today a long time coming as well wasn't that. 0:04:19.279 --> 0:04:21.240 You all may remember that this was a company that 0:04:21.320 --> 0:04:24.120 tried to go public via s back that was overseen 0:04:24.160 --> 0:04:27.360 by Bob Diamond's company, And since that moment, we've been 0:04:27.360 --> 0:04:30.520 waiting many, many months to see what circles ultimate exit 0:04:30.560 --> 0:04:32.920 strategy would be. Remember, they had a tough road to 0:04:32.960 --> 0:04:34.880 get here. They had money tied up in the Silicon 0:04:34.960 --> 0:04:38.080 Valley bank debacle. They were really able to pivot after that, 0:04:38.520 --> 0:04:40.880 and they have been able to hold their model into 0:04:40.960 --> 0:04:43.880 this IPO. Now, the stable coin world is quickly changing, 0:04:43.880 --> 0:04:46.560 there's regulation around it. This is all colliding kind of 0:04:46.560 --> 0:04:49.159 at the same time here and is there a market 0:04:49.160 --> 0:04:52.080 for crypto related a stable coin related stocks. Remember it's 0:04:52.120 --> 0:04:55.320 a different flavor of crypto asset at a time when 0:04:55.360 --> 0:04:57.520 the IPO market is supposedly opening up. 0:04:58.200 --> 0:05:01.159 Will be an interesting year, Katie. 0:05:01.360 --> 0:05:04.960 The news of the approval, the official news broke just 0:05:04.960 --> 0:05:07.640 before I went on stage with Adena Friedman at CES 0:05:07.680 --> 0:05:10.159 and on stage I said this is the breaking news, 0:05:10.440 --> 0:05:14.080 and there was a small ripple of applause a small 0:05:14.120 --> 0:05:17.360 and I emphasized small. But after that, the conversation I 0:05:17.360 --> 0:05:19.800 had with so many people is wait, how many got approved? 0:05:20.440 --> 0:05:22.880 Do we need eleven of these things. 0:05:23.560 --> 0:05:27.080 No, that's the answer that I've gotten from pretty much everyone, 0:05:27.240 --> 0:05:31.000 issuers included, not specifically on the record in a lot 0:05:31.080 --> 0:05:33.680 of cases. But the thinking is that, okay, this is 0:05:33.720 --> 0:05:36.279 a very crowded field, and the question becomes, how do 0:05:36.320 --> 0:05:39.599 you differentiate yourself if everyone's going at once and we 0:05:39.680 --> 0:05:41.760 all hold the same thing. And the answer has been 0:05:41.800 --> 0:05:43.880 to cut fees and then cut fees again. 0:05:43.920 --> 0:05:45.520 These fees are extremely low. 0:05:45.600 --> 0:05:48.320 You have bit Wise at the bottom there charging twenty 0:05:48.400 --> 0:05:51.239 basis points. That's their eventual fee. At the top, of course, 0:05:51.440 --> 0:05:55.120 you have GPTC charging one point five percent. That's a 0:05:55.240 --> 0:05:57.839 little bit of a different story there. But when it 0:05:57.880 --> 0:06:00.560 comes to where we are a year from now, what 0:06:00.640 --> 0:06:04.080 the assets and these eleven funds actually looked like. The 0:06:04.120 --> 0:06:07.159 expectation is that this will be a winner take most 0:06:07.240 --> 0:06:09.279 sort of environment. That you're going to have a handful 0:06:09.320 --> 0:06:11.960 of these funds holding the bulk of the assets, and 0:06:12.040 --> 0:06:15.320 it'll be interesting to see if we actually whittle down 0:06:15.320 --> 0:06:17.120 here and some of these funds eventually do shut. 0:06:17.920 --> 0:06:20.039 Let's talk about one of those funds in a moment, 0:06:20.240 --> 0:06:22.520 not invest at Katie Greifeld, we thank you so much. 0:06:22.600 --> 0:06:25.240 We can go to one of those key issues of 0:06:25.400 --> 0:06:28.679 n spot Bitcoin ETF. Roger Basin's with us Franklin Templeton, 0:06:28.760 --> 0:06:31.000 head of Digital Assets, You of course have launched the 0:06:31.000 --> 0:06:36.000 Franklin Bitcoin ETF today. Remind us of the fees, remind 0:06:36.040 --> 0:06:38.159 us of why perhaps you think you're going to survive 0:06:38.240 --> 0:06:40.120 at least within the eleven that we have. 0:06:41.720 --> 0:06:44.279 Well, I would just point to Bloomberg's own research. 0:06:44.880 --> 0:06:47.480 People need to go to Bloomberg to see how the 0:06:47.560 --> 0:06:49.520 fees line up for the issuers. Do you think it's 0:06:49.560 --> 0:06:52.559 correct that you need to look at the longer term 0:06:52.640 --> 0:06:55.120 about where this goes. This has been a very dynamic 0:06:55.200 --> 0:06:58.760 issuing environment over the past several days and weeks, and 0:06:59.240 --> 0:07:02.800 we expect at the dust will settle in the period ahead. 0:07:02.839 --> 0:07:07.960 But for sure, we believe this is a page that's 0:07:07.960 --> 0:07:12.560 been turned in this chapter. Accessibility to bitcoin outside of 0:07:12.600 --> 0:07:15.760 a digital wallet, inside of some of the more crypto 0:07:15.880 --> 0:07:18.440 native firms is what the story is here. It's no 0:07:18.680 --> 0:07:24.080 secret why we use the ticker symbol EASBC, because that's the. 0:07:24.040 --> 0:07:24.800 Story of the day. 0:07:25.880 --> 0:07:30.160 Roger, the accessibility part is the most interesting to me. 0:07:30.880 --> 0:07:34.600 Who is taking advantage of this product? Have you specific 0:07:35.240 --> 0:07:39.680 evidence of whether it's kind of legacy investment managers managing 0:07:39.720 --> 0:07:42.880 people's four one ks right through to the big institutionals 0:07:43.200 --> 0:07:44.480 that are active this morning. 0:07:46.120 --> 0:07:48.480 Well, I think again, the story today and volumes that 0:07:48.480 --> 0:07:49.840 are happening today is. 0:07:50.240 --> 0:07:53.200 Something that will change and pivot as we get. 0:07:53.000 --> 0:07:56.440 Deeper into twenty twenty four because the idea that there 0:07:56.480 --> 0:07:58.440 is a trusted brokerage account. 0:07:58.640 --> 0:08:00.880 I mean, we've had decades, in decades. 0:08:00.520 --> 0:08:04.560 Of regulatory oversight on the brokerage industry and as a 0:08:04.560 --> 0:08:08.040 result of that, the broker's account has become a trusted 0:08:09.160 --> 0:08:13.000 infrastructure within the overall capital markets for clients of hold 0:08:13.040 --> 0:08:16.440 and so to bring a Bitcoin exposure, which is really 0:08:16.480 --> 0:08:17.400 a story. 0:08:17.080 --> 0:08:19.920 About the growing and evolving network. 0:08:19.440 --> 0:08:23.160 Economy by and large, whether it's you know, bitcoin is 0:08:23.200 --> 0:08:26.360 a single purpose network, or whether it's Ethereum and the 0:08:27.280 --> 0:08:30.800 array of other public blockchain networks that are going to 0:08:30.840 --> 0:08:35.559 be used as really utilities for this data driven economy 0:08:35.720 --> 0:08:36.360 going forward. 0:08:36.440 --> 0:08:39.360 I think that's a thematic story that's going on. 0:08:39.440 --> 0:08:41.240 So I think we really want to point towards the 0:08:41.320 --> 0:08:45.080 longer term thematic story. But it's a successibility that opens 0:08:45.160 --> 0:08:48.280 up not just for individual investors, but for institutions also 0:08:48.360 --> 0:08:53.080 who are looking for trusted infrastructure and trusted providers to 0:08:53.120 --> 0:08:56.160 bring these innovations alongside of their other investments. 0:08:56.480 --> 0:08:58.679 What's interesting is, of course, in the same breath as 0:08:58.760 --> 0:09:02.120 signing off on these et the SEC chair then went 0:09:02.200 --> 0:09:05.160 on to say that investors should remain cautious about the 0:09:05.200 --> 0:09:08.920 myriad of risks associated with bitcoin and products whose value 0:09:09.000 --> 0:09:11.160 is tied to crypto. Roger, you are someone who's been 0:09:11.160 --> 0:09:13.280 at the cutting edge of this, trying to involve and 0:09:13.320 --> 0:09:16.880 build infrastructure over at Franklin tempton deciding how to involve 0:09:16.920 --> 0:09:20.880 digital assets more broadly with real world assets. What more 0:09:21.000 --> 0:09:24.240 is needed within the infrastructure space to make it that 0:09:24.280 --> 0:09:26.560 the SEC chair doesn't think that you should still be 0:09:26.640 --> 0:09:27.320 very cautious. 0:09:28.600 --> 0:09:30.760 Well, I think the SEC chairman is right to talk 0:09:30.760 --> 0:09:31.319 about caution. 0:09:31.440 --> 0:09:33.559 I mean, look, those of us who have been managing 0:09:33.720 --> 0:09:37.679 assets for our clients for dozens of years, there's volatility. 0:09:37.120 --> 0:09:37.560 Inside of this. 0:09:37.679 --> 0:09:39.839 You guys led with that story, with the volatility, the 0:09:39.920 --> 0:09:41.880 daily volatility that happens. 0:09:41.200 --> 0:09:43.760 And we think that's still going to exist in this space. 0:09:43.840 --> 0:09:47.000 The question is whether you are rewarded for taking that volatility. 0:09:47.360 --> 0:09:49.800 I think long term metrics have certainly shown so far 0:09:49.920 --> 0:09:53.800 that investors are rewarded for taking that volatility in that 0:09:53.960 --> 0:09:58.240 risk and then putting these alongside other assets for generating 0:09:58.280 --> 0:09:59.680 best outcomes going forward. 0:10:00.040 --> 0:10:01.960 But you're correct. We have been working. 0:10:01.960 --> 0:10:04.600 Closely with the SEC as it relates to block checking 0:10:04.720 --> 0:10:10.439 technologies and using them as infrastructure inside of already traditional 0:10:10.480 --> 0:10:14.320 assets in order to increase utility for underlying savers. And 0:10:14.400 --> 0:10:19.079 so we see the caution and we understand it, and 0:10:18.760 --> 0:10:21.760 we are alongside of that when we're counseling clients for 0:10:21.960 --> 0:10:23.040 risks in their portfolios. 0:10:23.080 --> 0:10:26.760 In general, Roger, the harving coming up later in the 0:10:26.840 --> 0:10:30.480 year is a point of discussion in parallel with this 0:10:31.280 --> 0:10:35.200 ETF roller coaster. Have you modeled and planned for that 0:10:35.280 --> 0:10:38.120 and how will it impact the products in your business? 0:10:39.840 --> 0:10:44.520 You know, path performance is not indicative of future results. However, 0:10:44.960 --> 0:10:48.280 if you look at previous having cycles there. 0:10:48.120 --> 0:10:50.160 It seems to be a technical situation. 0:10:50.240 --> 0:10:53.400 We all know that bitcoin is a constrained asset or 0:10:53.400 --> 0:10:54.960 only a certain amount of supply. 0:10:55.080 --> 0:10:56.400 When that supply begins to be. 0:10:56.440 --> 0:11:02.920 Diminished, especially alongside this this environment increased accessibility, it might 0:11:02.960 --> 0:11:06.080 create interesting technical dynamics flowing either way. 0:11:06.559 --> 0:11:08.559 But I think as you're seeing the market, as you've 0:11:08.559 --> 0:11:12.040 put Arbin pointed out, is pivoting toward what are other 0:11:13.040 --> 0:11:17.280 public blockchain network infrastructure opportunities that investors may be able 0:11:17.280 --> 0:11:20.320 to tap, and so you've seen that price action diverge. 0:11:19.840 --> 0:11:24.400 A little bit between ethereum and Bitcoin in the previous days. 0:11:24.400 --> 0:11:28.920 Just the timely skin in the game conversation, Roger Bastin Franklin, Templeton, 0:11:29.040 --> 0:11:33.040 thank you so much. Some breaking news crossing the Bloomberg 0:11:33.160 --> 0:11:36.720 terminal in the last few moments. The FAA is formally 0:11:36.760 --> 0:11:40.880 investigating Boeing over the seven three seven Max nine incident 0:11:41.200 --> 0:11:43.560 of the weekend. The FAA said in a post on 0:11:44.000 --> 0:11:46.800 x that this incident should never have happened and it 0:11:46.800 --> 0:11:50.680 cannot happen again. Later on, in that statement, it flags 0:11:51.000 --> 0:11:55.959 Boeing's manufacturing practices needing to comply with high safety standards 0:11:56.080 --> 0:11:59.880 that they are legally accountable to meet, and they've attached 0:12:00.160 --> 0:12:03.520 formal letter on that investigation. The shares you just saw 0:12:03.559 --> 0:12:06.960 there have been under pressure. Anyway, Reminder that what happened 0:12:06.960 --> 0:12:09.560 on that Alaska flight over the weekend is that a 0:12:09.800 --> 0:12:15.760 plug in the rear of that plane detached mid flight. 0:12:16.400 --> 0:12:19.120 And now the FAA saying, Caroline that there is a 0:12:19.120 --> 0:12:21.720 formal investigation relating to that incident. 0:12:21.920 --> 0:12:23.960 We stay on top of that story. We also stay 0:12:24.000 --> 0:12:26.400 on top of others that broke earlier today. Coming up 0:12:26.440 --> 0:12:30.120 the Hertz decision to reverse course on its push into 0:12:30.160 --> 0:12:33.320 electric vehicles. Details ahead on the company's decision look to 0:12:33.320 --> 0:12:37.040 offload twenty thousand electric vehicles and like a demand, we'll 0:12:37.080 --> 0:12:38.040 dig into it at the moment. 0:12:38.840 --> 0:12:40.480 This is Bloomberg Technology. 0:12:53.960 --> 0:12:57.600 In a major reversal after a large purchase of Tesla vehicles. 0:12:57.640 --> 0:13:00.520 In twenty twenty one, Hurts announced it is it's going 0:13:00.559 --> 0:13:04.400 to sell twenty thousand electric vehicles in return to buy 0:13:04.440 --> 0:13:08.080 gas powered cars joining us Now Bloomberg's David Welch, Detroit 0:13:08.120 --> 0:13:11.160 bureau chief, and David, this is a far cry from 0:13:11.200 --> 0:13:14.520 the plan. They were going to buy almost three hundred 0:13:14.520 --> 0:13:16.920 and fifty one hundred and fifty thousand vehicles across Tesla, 0:13:17.000 --> 0:13:17.880 GM and Pollstar. 0:13:18.360 --> 0:13:20.120 Now they're trying to get rid of them. What is 0:13:20.160 --> 0:13:21.040 said about why? 0:13:22.840 --> 0:13:24.719 Same thing they said in the third quarter, only more 0:13:24.800 --> 0:13:28.319 so they had depreciation on the cars, so they've got 0:13:28.320 --> 0:13:31.560 this feud of vehicles. Elon Musk cuts prices by twenty 0:13:31.600 --> 0:13:35.360 five thirty percent on most models. That means the resale 0:13:35.440 --> 0:13:38.160 value of Tesla vehicles out in the market hurts, including 0:13:38.360 --> 0:13:43.520 those that hurts itself is carrying, so they had to 0:13:43.559 --> 0:13:47.959 take a basically a charge for the disposition casts they have. 0:13:48.120 --> 0:13:50.880 They also had higher repair costs for these vehicles. All 0:13:50.920 --> 0:13:52.600 that was hurting earnings and they set in the third 0:13:52.640 --> 0:13:55.640 quarter that they actually missed Wall Street estimates of seventy 0:13:55.679 --> 0:13:58.360 seven cents a share by seven cents because of that. 0:13:58.800 --> 0:14:01.040 So when you look at that, they had to do something. 0:14:01.120 --> 0:14:03.880 Because EV prices are still challenged, they had to actually 0:14:03.880 --> 0:14:07.520 continue to come down EV sales. New vehicle sales still growing, 0:14:07.600 --> 0:14:09.880 but growing at a much slower pace. That has an 0:14:09.880 --> 0:14:12.120 impact on pricing and the used car market as well. 0:14:12.160 --> 0:14:14.360 All of this stuff is really related, so they had 0:14:14.360 --> 0:14:16.320 to make an adjustment. It also means down the line 0:14:16.559 --> 0:14:20.000 they're going to buy fewer vehicles from GM and from Polestar. 0:14:20.080 --> 0:14:22.040 If they do buy one hundred and seventy five thousand 0:14:22.040 --> 0:14:24.480 GM evs, it'll be over a much longer period of 0:14:24.520 --> 0:14:27.120 time than five years. That's what Stephen sure the CEO, 0:14:27.240 --> 0:14:30.160 told me an interview this morning. So there's a lot 0:14:30.160 --> 0:14:32.840 of not good for everybody here because tests will see 0:14:32.840 --> 0:14:36.040 pricing pressure the people who own teslas right now will 0:14:36.040 --> 0:14:39.080 see every sale value go down because it oftens the market. 0:14:39.480 --> 0:14:41.840 And I think for car companies like GM, Pollstar and 0:14:41.920 --> 0:14:45.120 others who may have been hoping to use corporate fleet 0:14:45.200 --> 0:14:48.360 sales and rental sales as a way to buttress demand 0:14:48.440 --> 0:14:52.280 as consumers maybe scratch their heads about evs, that's not 0:14:52.320 --> 0:14:54.880 going to be an easy outlet for sales either. So 0:14:55.640 --> 0:14:57.720 it's a big bump in the road for evs and 0:14:57.760 --> 0:14:59.640 there's decent ripple effect out of this. 0:14:59.640 --> 0:15:00.480 Too, David. 0:15:00.680 --> 0:15:02.800 The context comes as well with a story that was 0:15:02.840 --> 0:15:06.040 written up from Cox Automotive yesterday just showing that the 0:15:06.120 --> 0:15:10.400 demand for EV's isn't picking up pace. Particularly it feels 0:15:10.400 --> 0:15:12.760 as though, well just one point five percent I think 0:15:12.800 --> 0:15:15.160 growth was eked out in the final quarter of last year, 0:15:15.200 --> 0:15:19.040 and that's sequentially been going slower and slower. How much 0:15:19.120 --> 0:15:22.400 is this signaling that ultimately the user isn't ready for 0:15:22.400 --> 0:15:24.440 an EV experience when they're going via hertz. 0:15:25.200 --> 0:15:27.040 There's a lot of that going on. Look, just to 0:15:27.120 --> 0:15:30.120 be sure here, EV sales aren't growing. If you go 0:15:30.160 --> 0:15:32.120 look year over year, the numbers are pretty big, and 0:15:32.240 --> 0:15:34.680 last year was a record year for EV sales, but 0:15:34.720 --> 0:15:37.360 the third quarter to fourth quarter number, I thought it 0:15:37.400 --> 0:15:39.400 was my story. I thought it was significant one point 0:15:39.480 --> 0:15:43.120 three percent third quarter. There are seasonal factors in there, 0:15:43.120 --> 0:15:45.680 but third quarter is usually a pretty strong quarter for 0:15:45.720 --> 0:15:48.160 auto sales because it's new model year turnover and a 0:15:48.200 --> 0:15:50.880 lot of new vehicles come out. Consumers are excited. Fourth 0:15:50.960 --> 0:15:53.760 quarter also very strong because you have things like December 0:15:53.760 --> 0:15:56.120 to remember from Toyota and other sales that drive people 0:15:56.160 --> 0:15:59.240 the showrooms to buy cars. So those are two historically 0:15:59.240 --> 0:16:02.680 strong quarters for vehicle sales. And EB sales only grew 0:16:02.720 --> 0:16:05.800 one twenty three percent after growing six percent second quarter 0:16:06.000 --> 0:16:09.520 to third quarter and fourteen before that. So yeah, still 0:16:09.520 --> 0:16:11.320 growth in the market if you look here over a year, 0:16:11.360 --> 0:16:14.120 but it's definitely slowing down. People are wondering where they're 0:16:14.120 --> 0:16:15.720 going to charge them when they're out and about, and 0:16:15.760 --> 0:16:19.160 there still aren't many affordable evs on the market displaced 0:16:19.200 --> 0:16:20.920 the price cuts. There's only one on the market that 0:16:21.000 --> 0:16:23.600 sells for blow forty thousand dollars, that's the Nissan Leaf, 0:16:24.120 --> 0:16:26.360 and that doesn't go very far on a charge. So 0:16:27.200 --> 0:16:31.160 there's a lot that needs to be sold to consumers 0:16:31.200 --> 0:16:35.080 to get them to continue snapping up evs and big numbers. 0:16:34.840 --> 0:16:37.880 I said David Welch. Great to get the breakdown with you. 0:16:38.040 --> 0:16:40.960 We thank you so much on that big about face. Meanwhile, 0:16:41.080 --> 0:16:42.800 let's get you some more breaking news, this time in 0:16:42.840 --> 0:16:44.480 the banking sect. To Morgan SAMMI is going to be 0:16:44.520 --> 0:16:48.600 paying under three hundred million dollars to settle that block trade. 0:16:48.640 --> 0:16:51.360 Probusestationalie still on set with us to break it all down. 0:16:51.440 --> 0:16:55.240 So the investigation was surrounding what exactly. 0:16:55.360 --> 0:16:58.320 The process of block trading. This is all began in 0:16:58.320 --> 0:17:01.120 the wake of the Arcagos trades. You saw Morgan Stanley 0:17:01.600 --> 0:17:04.080 end up losing some talent over this, departing with the 0:17:04.160 --> 0:17:07.240 firm over concerns about how some of these trades were handled. 0:17:07.640 --> 0:17:10.600 Now what we're seeing is they are close to an agreement. 0:17:10.600 --> 0:17:14.040 According to sources telling our own truth arnaturagnavi' been any 0:17:14.119 --> 0:17:16.840 Morrison and Austin Weinstein that the charges could be between 0:17:16.840 --> 0:17:18.920 two hundred million and three hundred million dollars in While 0:17:19.000 --> 0:17:21.119 that may sound like a lot, it is a lot 0:17:21.240 --> 0:17:24.000 less than expected. Why this matters as well, it is 0:17:24.040 --> 0:17:27.160 one of the investigations that Morgan Stanley wanted to clear 0:17:27.240 --> 0:17:30.920 up in its succession plan as they moved the baton 0:17:31.119 --> 0:17:34.560 from James Gorman over to Ted pickover at Morgan Stanley. 0:17:34.840 --> 0:17:37.280 Now the penalty will be divvied up between the Justice 0:17:37.280 --> 0:17:41.360 Department and the Securities of Exchange Commission, according to Bloomberg sources, 0:17:41.400 --> 0:17:45.920 and it will not include criminal charges against the bank importantly, 0:17:46.119 --> 0:17:49.000 So this would be in the coming days, according to sources, 0:17:49.359 --> 0:17:51.560 and it would turn a page for Morgan Stanley that 0:17:51.560 --> 0:17:53.600 has been an overhang in the last several months. 0:17:54.760 --> 0:17:57.120 All right, Bloomberg Shnati bassing there with the breaking news. 0:17:57.200 --> 0:17:59.359 My goodness, has it been a sprint start to twenty 0:17:59.400 --> 0:18:02.399 twenty four. Okay, time for talking tech and first star up. 0:18:02.440 --> 0:18:05.879 An advisor to the European Union's Court of Justice says 0:18:05.960 --> 0:18:08.920 Google should not win its appeal against a two point 0:18:08.960 --> 0:18:13.000 six billion anti trust fine. EU competition regulators slapped Google 0:18:13.000 --> 0:18:15.720 with the fine in twenty seventeen for favoring its own 0:18:15.760 --> 0:18:19.280 shopping service over those of its rivals and staying with 0:18:19.400 --> 0:18:22.800 EU regulation. Concerns over Amazon's one point four billion dollar 0:18:22.840 --> 0:18:25.760 deal to buy rumba maker i Robot are coming to 0:18:25.840 --> 0:18:29.199 light after the tech giant missed a Wednesday deadline to 0:18:29.280 --> 0:18:32.919 file remedies to anti trust enforces. The Competition Commission has 0:18:32.960 --> 0:18:36.280 set a February deadline to decide whether to approve or 0:18:36.400 --> 0:18:39.960 block the iRobot deal. Plus twenty twenty four is starting 0:18:39.960 --> 0:18:42.959 off with an uptick in tech layoffs. 0:18:42.520 --> 0:18:44.760 In order to restructure and reduce costs. 0:18:44.840 --> 0:18:47.920 Google is now the latest company to cut staff, laying 0:18:47.960 --> 0:18:51.560 off hundreds of workers from its hardware, engineering and digital 0:18:51.560 --> 0:18:52.399 assistant teams. 0:18:52.480 --> 0:18:55.840 Character bit of deja vou there pay And someone that 0:18:55.880 --> 0:18:58.200 we can dive into that very story with is Brodie Ford, 0:18:58.240 --> 0:19:02.560 who perhaps has taken the temperature and mood of Silicon 0:19:02.600 --> 0:19:04.440 Valley right now, and it feels a bit dour again. 0:19:04.760 --> 0:19:05.880 Deja vu is right. 0:19:06.000 --> 0:19:08.160 I remember being here about a year ago we were 0:19:08.160 --> 0:19:12.240 hearing salesforce layoffs Google, Microsoft, tens of thousands of people. 0:19:12.280 --> 0:19:14.960 And this isn't quite that right. I mean, we're not 0:19:15.080 --> 0:19:18.199 talking tens of thousands here, We're talking hundreds, which is 0:19:18.240 --> 0:19:21.359 still you know, disruptive for individuals and a sign that 0:19:21.400 --> 0:19:23.840 the tech economy is not fully back to the kind 0:19:23.880 --> 0:19:25.560 of big growth days. 0:19:26.080 --> 0:19:26.280 Right. 0:19:26.760 --> 0:19:29.000 And so what this really is, it's a costious sign 0:19:29.080 --> 0:19:31.560 for the tech industry that right now still if you 0:19:31.640 --> 0:19:34.800 are working in a division that is not growing rapidly, 0:19:35.200 --> 0:19:36.640 you might still be on the shopping block. 0:19:36.800 --> 0:19:38.640 And what about creative areas. 0:19:38.720 --> 0:19:41.639 I mean, the whole generative AI boom that kind of 0:19:41.880 --> 0:19:44.680 helped be the silver lining of the cloud of job 0:19:44.720 --> 0:19:46.879 losses ends up being a bit of a cloud. If 0:19:46.880 --> 0:19:49.080 you're worrying about your job in the future, maybe Generative 0:19:49.119 --> 0:19:50.200 II is kind of going. 0:19:50.200 --> 0:19:51.159 To take it right. 0:19:51.200 --> 0:19:55.960 I mean, we saw Amazon Studios twitch and then Duo Lingo, 0:19:56.040 --> 0:19:57.959 which the folks that were cut were in a lot 0:19:57.960 --> 0:20:00.520 of the content creation divisions. It's hard to notice a 0:20:00.560 --> 0:20:02.560 trend here that some of these folks working on these 0:20:02.880 --> 0:20:06.560 consumer facing aspects. I mean, I've spoken of sources at 0:20:06.600 --> 0:20:08.760 Duo Lingo who are translators who said that they were 0:20:08.840 --> 0:20:11.719 kind of told like, look, hey, I can do your 0:20:11.800 --> 0:20:15.000