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tv   Bloomberg Technology  Bloomberg  May 18, 2022 11:00pm-12:00am EDT

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>> from the heart of where
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innovation, money and power collide, and silicon valley and beyond, this is bloomberg technology with emily chang. ed" i'm ed ludlow in san francisco and for emily chang. this is bloomberg technology. tech humbled. retailers think stock is concerned around earnings as it adds to fed anxiety. we speak to a seasoned investor who sees opportunity in the drop. it's not just tech stocks, cryptocurrencies are in it this year. the meltdown shows no signs of easing. some coins are holding up better than others. we will have all the details. elon musk is at it again. twitter report says it's committed to the billionaires original takeover deals despite
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his concerns. the tesla ceo using the social media platform to vent frustrations on the ev maker getting yanked from the index. all of that later this hour. let's get a look at markets paying for stocks. the s&p 500 suffering its deepest one-day drop in almost two years. here is the latest. consumer retail tech all in the red. >> all in the red, and it has been nothing short of brutal when you have the s&p 500 closing down from 4%. the nasdaq 500 being weighed down from 5%. you have this at heavyweight like apple and amazon down today overpriced in today's session and big tech not being held by the fact that we did have lower yields on that 11 basis points and that's really not helping the markets out today as we fall back into safety and treasuries. when we talk about that risk off sentiment we have to talk about
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bitcoin. below that $30,000 threshold there and if you actually think about it coin, and may alone down more than 20%. that collapsing the stablecoin, not recovering those losses. today, that pressure really accelerated after those target earnings. so a miss on those analyst expectations and that profit outlook being cut to 6% from 8%. this is not about sales, this is not about revenue, this was about higher freight cost, higher inventory levels. all of that weighing on the stock. it was a similar story with walmart. walmart stock down over the past two days and target having the worst day since 1987. let us flip up the board, because when we talk about margins of those coming out of pressure let's talk about the cisco earnings we just got after the market closing. plunging down 13%, they got hit with the china covid lockdowns,
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supply chain issues coming to the forefront. they also got hit by the russia -ukraine war and inflation playing a keyport -- key part, will that weigh on customer demand? a real setback on cisco earnings. ed: cisco a real bellwether of corporate spending, thank you. i want to bring in mel, she is the ceo of we family offices that has more than $14 billion in assets under management. you have seen a lot of markets, what do you make of a day like today? mel: i think we are going through a paradigm shift. we are going through a regime change in the markets are getting used to the fact that the very drivers that drove this fantastic investment environment the last 10 years will not be here anymore. we will not have low inflation, we will have low interest rates, we are not going to have globalization, we won't have very benign geopolitical markets. so i think that a lot of those
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things that lead to wonderful markets over the last 10 years will change in the market is trying to figure out what the new paradigm is going to look like. what's it going to be in the next 10? ed: we are looking at the chart on the bloomberg terminal, evaluations on the nasdaq 100, we are getting nearer to the 10 year average on the price projected profit and we are getting nearer to pre-pandemic levels. do you sense opportunities in days like today? mel: absolutely. absolutely. a lot of the things that are worrying the corporate's, the supply chain issues, lower profit margins, inflation, how would you solve it? you will solve it through technology. the name of the game is productivity. what will drive productivity? it's going to be technology. i think there is tremendous opportunity happening right now. ed: mel, you are the former ceo of jp morgan private bank, your been in the market for a long time.
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there is a lot to take on board, the inflation, the outlook, supply chain issues, china, i could go on and on if you'd like me to. what is driving the psychology of the market? mel: i think it is inflation. i think it's really the fact that for those of us who remember, and i do remember, once inflation starts it is hard to get under control. we have been blessed with this unbelievable investment climate over the last 10 years. i think people are trying to figure out how we are going to be able to bring down inflation, what will it look like over the next 10 years? what will it take? i'm not a trader, i more of a long-term investor, so i really look at the next 10 years. ed: if you things caught my eyes, the opportunities in particular subsectors, talking about artificial intelligence, cybersecurity, those longer duration software stocks. where do you see the opportunity specifically? mel: we see the opportunity around all of this -- you think
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about all of the areas that productivity is really going to change the new paradigm, it is going to be, for example, the health care sector. take a look at the demographics of the united states, technology will make a huge difference in health care. i think you have to play it across the equity spectrum. you have to play it in venture, you have to play it in growth, you have to play it in the private markets and public markets. you have to play it across the board. same thing with cybersecurity, same thing with artificial intelligence or the cloud. ed: i want to come back to cisco. we are down 30% in after-hours, saying it is impossible to catch up supply given the current situation. you think about their exposures, what we see in the semiconductor space, their exposure to china. you against the opportunities in semiconductors. talk to me about that. mel: we do see a lot of opportunity in semiconductors, but it will take time.
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factories will have to be built, it there will be tremendous demand, but we are going through this adjustment. that is where the issue is, we are going through this adjustment, it's taking down a lot of great companies that i think will emerge stronger. they will emerge different as a result of this. there is tremendous opportunity in that space including companies like cisco. ed: we have seen this underperformance of the nasdaq 100 relative to the broader market. the sensitivity of tech to higher rates, the psychology around that. knowing forward, what is the key data we are looking at? do we track inflation or do we assess the markets fate that the fed can handle inflation without causing a hard landing? or, indeed, delivering a soft landing? mel: the economy is pretty hot right now and it will take a bit to cool it down. i think the consumer is still spending, even though you are seeing the walmart and target
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results. but i think that the economy is strong enough not to have a recession this year. i think we might get a recession this year, but i do not think it will be long. ed: right. right. mel, final question you also see , opportunity in private market, talk to me about that. mel: we see lots more opportunity in private markets than in public markets, i think it is a tremendous amount of money to be put to work, and i think that exactly what's happening in the public markets will bring down valuations and will create fantastic opportunities in the private markets. across the whole spectrum. ed: the whole spectrum indeed, mel, thank you. what a fascinating conversation on a big day. coming up, he might not like the terms of the deal, but elon musk twitter take appears to be very much on track. the latest on all that next. bloomberg john joins me a talk by this latest market drop and
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why he is warning against buying. this is bloomberg. ♪
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ed: elon musk continues to tweet and tweet and tweet his concerns about twitter spot problem, sources say his deal to buy the platform is still very much going forward, for more on where things stand, i am joined by bloomberg steals reporter along with bloomberg technology executive editor, tom giles. tom, i will start with you. just bring us up to speed. where do we stand with this?
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tom: twitter thinks the deal is going forward. as our colleague michelle who broke the nose yes just broke the news yesterday twitter's , board came out and said they will enforce the merger agreement. they have the agreement in place where you are musk will pay the company and we expect that deal to go through. all this talk, all this background noise about bots, deals on hold, which is not a thing by the way. not a thing. twitter is like, the deal goes forward. ed: michelle, i want to get the inside scoop from you. but first we have natasha lam who was on the show on tuesday, listen to what she had to say about the whole situation. natasha: i think twitter has had so many challenges over the years, which is why you see ceos come and go, move around, while you are seeing what is happening with elon musk right now. unfortunately, it feels like elon musk is a cat playing with a ball of string.
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ed: a cat with a ball of string, what you are hearing, michelle, is in the background the bankers, advisors, business as usual. michelle: yeah, everyone that i have been talking to is under the impression that the deal with proceed as planned. one big sign of that is that the proxy filing hit yesterday morning. that is this big 100 page long document that explains how the deal came together, it's something that was put together in coordination with the musk camp and the twitter camp and is something musk would have had to personally sign off on if it was filed. it is a proxy that outlined the deal 54-20. it is the clearest indication that both sides do see this deal going forward despite the tweets we are seeing on twitter. tom: michelle, i've got a question. all this chatter, all this noise
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in the background about bots and whether or not he had all the information he needed before he agreed to this deal. what happens if he decides, i do not want to pay 5420, what does -- what are the means that he has at his disposal? michelle: a lot of people have talked about the fact that the deal has a breakup fee. people say he could pay this billion-dollar breakup fee and walk away. that's not true. it is seller friendly, and includes a legal provision called specific performance. it means that if musk decides he wants to walk away, twitter can take them to court and get a court order that says you have to complete this deal. you have to come up with the financing and pay for twitter. other options he could take, if he could try to show something called a material adverse event, he could say, there was some change to the business that materially, for a sustained period of time would change the
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outlook of twitter. but the burden of proof is on him. he would have to show this. him saying, twitter, i'm not going to this deal until you prove to me that bots make up fewer than 5% of accounts, twitter does not have to prove anything. he also waived his right to due diligence when he was going about this deal and presented that as something that was a vote in favor of the deal. he said he was someone who would do this quickly and not do due diligence, he kind of does not have a leg to stand on. finally, twitter has made public disclosures about the fact that estimates bots makeup fewer than 5% of account. in security filings have said, and most recent one, that the number could be higher than that. the people that i talked to say a judge would be hard-pressed to agree with musk on this. what could happen, he could try to walk away, twitter could take him to court, and then in order
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to avoid a lengthy protracted court battle there could be a scenario whether two come to some settlement. at this point, from my understanding, twitter does not have any reason to renegotiate a deal. the contract is in their favor. it seems like the deal has to go ahead unless musk can prove that there is some kind of material adverse effect. ed: meantime, tom, we zeroed in on the share price. the twitter stock accelerated with the broader market, basically the skepticism from the market, that $54.20 materializes, meanwhile he is tweeting a lot about his political affiliations. we wonder if this is him getting ahead of the scrutiny of the deal, is this him trying to get allies in d.c.? what is your read? tom: there are a couple of things going on. he talked about disillusionment
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with the democrats, how the next election he is voting republican, this is apparently the first time he has done it, i have not seen his voting records. that's what he's saying. what's interesting about that? you have a couple of dynamics going on. this is a guy who's market is moving, is shifting. he started in california, his company started in california he moved to texas. he is shifting towards wanting to sell trucks, he's got a different constituency. the market for electric vehicles in california's is saturated. he needs to embrace a whole new constituency. people who drive trucks, a different constituency than the californians who by ev's. the other side of the equation, the other side of the equation is, as you pointed out, there's a lot of scrutiny around this deal, and a lot of scrutiny around tesla and his management of tesla. whether it is the sec looking at things he tweeted about sales of tesla stock and reportedly the sec is looking into the timing
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of his disclosure around the twitter stake. the government is already scrutinizing a lot about elon musk and what he is says about potential manipulations of securities. so, this could be him just getting ahead of it and saying, look, i told you so. we knew this is already happening, we did not need elon to telus. these agencies have already been doing it for months. ed: michelle, very quickly, five seconds, what's the probability of this deal happening? michelle: i couldn't tell you. tom: i cannot tell you. at $54.20 i do not think it is happening. they go to court, he negotiates the price down. ed: wait and see, executive editor for bloomberg technology, coming up with we dig deep into the selloff as investors assess the impact of higher prices on
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earnings and economic growth. this is bloomberg. ♪
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ibm. let's create ed: let's get straight back to the selloff in financial markets. all corners of the equity arc it sold off with -- market sold off. joining us is bloomberg senior editor for markets and opinion colonists, john. on a wednesday like this, when you see the red across the bloomberg terminal, where do you look for answers? john: first of all, this is one of those days that has gone back to the synchronization. and if you look at how bond yields have moved and how the oil prices move today, both rose until 8:00 or 9:00 in the morning, tested new levels and
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decided they weren't going there and slid their rest of the day. and basically, stocks have fallen in line with the oil price and with bond yields all day. a very coherent bet, actually against inflation, a bet that ties back into target and has a huge impact on the whole of the tech sector. it ties into this belief that inflation might be bitten off by companies having to swallow bad margins. ed: these are big declines any wrote a fantastic column on tuesday about the dangers of buying it. you basically talk about how fund managers and invest in's -- investors are sanguine about inflation or persistent inflation and you look at the outlook for it and all of these players are underweight tech. what do you do without one?
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quex -- john: it's certainly true that in the last few years tech has been sensitive to rates. at the moment, when it's more of a straightforward play of mi comfortable being in stocks or bonds, do i think there's going to be inflation and stagflation, or recession? at this point i think you need to get back to the really sudden -- when he was asked why he wrapped banks, he said, because that's where the money is. if you want to take profits and get out of the equity market in the most liquid stocks in which people are probably sitting on profit still, are the big tech stocks. that's the main reason they are down. ed: come with me into the bloomberg terminal and look at the chart. we talk about the pain and certain pockets of this market. at the same time, we have seen five straight weeks of flows, a little drop off in that. what is the psychology here?
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what is driving that? john: i fear it's a lottery ticket by. you might as well shoot for the moon, you don't have much money anyway, the only great -- only way it will make a real difference is buying something that will rip higher. they have lots of publicity, people like to invest in something that is a little exciting. which obviously the stocks are, the likes of target and walmart aren't. i think that is a disconnect between the retail market and the broader institutions that are mostly behind what is going on today. ed: john, when i was a kid i was obsessed with dinosaurs. as you know i am a londoner, i , went to the national history museum, look at the skeletons. going across the bloomberg terminal i go into your bio i see the word brontosaurus. what are you talking about?
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john: i was also a fan of it in the metro history museum in london. the brontosaurus is a reference to yet another british guy jeremy grantham, who in 2007, as the housing market had already turned in subprime mortgage dealers were beginning to go bankrupt, i asked him why is the stock market still holding up so much. he said the stock market is basically like a brontosaurus. a brontosaurus, if you get its tail, its nervous system and brain was so limited, it would take a long time to know it's tail had been bitten, to feel the pain. in the same way the stock market's take an extremely long time to catch on to what has happened elsewhere in the economy and the markets. ed: i have always wanted to do that, talk about dinosaurs and financial markets. you have made my day. bloomberg opinion columnist john arthur.
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this is just a snapshot in time. thank you so much for your time, coming up we continue the market volatility coverage. u.s. stocks tumbling as investors assess the impacts of higher prices on earnings, future rate hikes. have we seen this before? that is the big question with the next guest. this is bloomberg. ♪
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ed: welcome to bloomberg technology, i'm ed ludlow in san francisco. shares of retailers funds, leaving the selloff on wall street after they cut their growth outlook for 2022. we are joined with the latest. which names are we watching? >> yesterday was walmart, today it was target having its worst day since 1987. it was a miss on those earnings, actually cutting their profit outlook to 6% from 8%. it was not about sales, it was about the highest rate costs in fuel costs in the inventory levels rising up from 43% from one year ago. that was a similar store we saw from walmart yesterday, which is also down in the session today. this is not just your traditional retailers being hit today, that has extended over to your e-commerce. i'm looking at etsy. i'm looking at wayfair and ebay. all of those were down and
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suffer from a lot of the same problems, supply chain issues, inflation. those are on a year-to-date basis getting hit even higher than the likes of walmart and target. you have to remember we talk about the e-commerce spots. these are actually your pandemic darlings, but that started to fall when we got the reopening. that's the stay-at-home and began to suffer as people got back out and started shopping back in brick-and-mortar. if you look at the e-commerce index, it actually given up about half of the peak of the pandemic gains. and of course, we talk about shoppers changing, it's not just how they shop, but what they have been shopping on. we see that consumer discretionary really getting hit. those stocks down in the past month and a big way. a key part of that is of course inflation. raises -- wages are rising. we see optional spending dwindling, it's kicking as food and fuel prices have been rising
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in a big way. that is a big thing we have seen in some of these retail earnings. ed: lots of big-name tech companies who stopped. they were feeling the burn of higher interest rates. the continued crisis of a war in ukraine. domestic inflation and a pandemic now well into its third year. the saarc about how this market chaos is affecting not just public markets, but later stage selloffs and company stage with a likely venture partner. alex, on a day like this, red everywhere, anxiety everywhere, what's your take on it? >> thanks for having me, i appreciate it. definitely a tough day for public market investors. as a venture capital firm with over 20 years of investing history and the private markets, we have a little bit of a different perspective. our companies generally don't have the pleasure of being marked every single day, they
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could take a longer term view. essentially, these companies raise money in 2021 and capital is fairly sheep -- cheap historically have very high prices at our perspective is a lot of those companies will come back into the market in the next couple of years and not face the same kind of cheap capital environment. we are expecting with the public companies are seeing right now will trickle back down into the privates over time. if there is a lot private companies can do in the intervening time frame to make their businesses more attractive so that when they do have to activate the financing markets, they will look better. ed: you have the experience of looking through a portfolio, some of those companies in the past have gone public. come with me into my bloomberg terminal and take a look at this chart. you want to make a key point, which is that perhaps we have seen this before. what we are seeing on our screen is that there is a single metric that shows the magnitude of the current downturn that we are seeing, and that is a retreat
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and revenue multiples for a specific corner of the technology market. left-hand of your screen, the blue line, amazon in 1998 through 2000, 2001. right-hand side, shopper five. why are you looking at this data? >> we are always looking at the public market that applies to revenue. we are in assets that are profitable. the rate of growth of the business is not important. i think in the days where you have new platforms, there is a lot of enthusiasm and that can often create speculative asset bubbles, which is something that's common throughout financial markets. in some of what happened the last two years, and addition to being pushed on by the pandemic or parallel to what happened in the dot-com bubble, certain names benefited from the shift to e-commerce. but the other thing to just consider here is that amazon is still around it is a very
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valuable company in sods way through 96% share price collapse from the dot-com bubble. not to say shopper five will continue to go down, maybe it will, maybe it won't, we believe it's a durable business. so the chart had a few different stories. we personally take a few of optimism, and that these speculative bubbles come and go, but some of these businesses are building real value for the long term. ed: some of the pain and technology shares over the next seven days the likes of apple, the maker cap's like microsoft. i'm fascinated with the private markets. we broke a story on tuesday that spacex is raising more money at a valuation of $125 billion in value that $100 billion in october. when you hear about that, how do you assess valuations and what do valuations look like in the coming months, especially with the backdrop of the fed that's determined to raise rates? >> this is a conversation we have a lot internally and with
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some of our peers at other firms. there is a big valuation reset that's essentially happening right now. not in the public, because these are not publicly traded securities. but their private markets always look to the public markets for guidance on valuation. essentially, for a lot of businesses, your multiples have been cut in half, they be cut by three x over the last six months. those businesses will essentially have to get back to par before they go out and raise again in this environment. we are really stressing the importance of cash flow and becoming default alive in the environment, which essentially means you can ratchet up and down your sales of targeting spend and maintain a relatively modest burn while volatility plays out and we expect volatility to increase before it decreases again. ed: very quickly, what i'm seeing on my screen is the share performance of things like air b&b, snap, uber over the last
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couple of years. these are names that were created in periods of stress. i am thinking back to 2008 and 2009 during the financial crisis. very quickly, what would your advice be to a founder right now with the markets that they are right now? alex: absolutely. the first thing is to stay optimistic. while it might be difficult to do if you're looking at your own personal stock portfolio, the reality is the downturn in a capital constrained environment often produces the best companies. companies can really focus in on what they are great at and ignore things that are extraneous. talent tends to stick around longer, and people are not choosing between as many different jobs so you can keep them engaged for longer. you can have the time to hold that business model because you have to to survive. we invest in all cycles constantly. we have been doing it for over 20 years. i do think there is also some advantages companies can have during downturn, but that's presuming you get control of your business and do it decisively. ed: alex giving us the private
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market take on volatility. thank you very much. coming up, a bloomberg scoop. gabe is telling investors he plans to wind down his capital management after billions of dollars of losses. details ahead. this is bloomberg. ♪
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ed: time for our crypto report. a brutal market selloff. bloomberg back with us, but before we get into digital assets, we have to argue about the plan to wind down. >> remember, this is amazing scoop by bloomberg. really the poster child here of
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that gamestop short squeeze, even after recouping some of the losses that he had in early 2021, is now down again for the year and telling investors that he is returning money unwinding down. remember this was right after he initially tried to reboot the fund in a different fashion, scrap the plans, and now remember, i have to say, wall street has been expecting casualties in the hedge fund industries and it starts here with melvin capital. ed: give me a quick update on the markets in the world of currency. >> something interesting here is even though you saw that brutal selloff in the markets, especially in the nasdaq 100 with 5% selloff, you are actually seeing bitcoin, even though is trading below the 30% level, only falling by 3% over a 24 hour period. not falling off that steeply, as the market you see a hold steady as opposed to other coins in
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this downturn. so when you look at bitcoin, to what extent is it the relative safe haven compared to the other crypto assets? ed: stay with us, let's bring in our next guest, the cofounder and ceo of 21 shares, a crypto exchange traded product issuer. it is now marking its u.s. entrance with the launch of two new funds. simple questions to start with. why is the u.s. ok with etp but not etf's? >> thank you for having me, i'm really excited to talk about our launch into the u.s. market. we are launching private funds today, so we are not led -- not yet launching etf's or etp. we are working on an etf in america and that's public as well, but nothing has been announced yet, we are still working very, very closely with the regulators on all of that. >> why is it that this is a time to launch new products in a down
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market? especially when there's a lot of questions about how comfortable institutions will get with these products in such a downturn? >> so there are a couple of reasons. when we first launched in 2018, the world's first physically backed etp, which was the first crypto etf on the stock exchange, it was a bear market and i remember the initial see capital of 5,000,001 went down to 3.52 days later. it turns out the building during bear market, if you are focused on the long-term, ended up being a pretty good bet. the other way of looking at this is, nothing fundamental has changed with any of the underlying technologies, and we are seeing this across the board, both across every crypto asset, as well as more institutional investor interest. one of the things that should be very comforting is that despite the market selloff and what happened with the ecosystem last
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week, we only saw a couple of days of outflows and we have seen consistent inflows today, yesterday, the day before and friday as well. >> while you are on it, how does what happened last week, more than a week ago now, the tariff breakdown really drawn into question the broader crypto ecosystem and their place of other coins, stablecoins and the ecosystem? greg so we had the world's largest luna terry etf, which was listed on the european exchanges, including switzerland, so we have been following this very, very closely. on the product itself, considering that luna is now operating intermittently, we obviously have suspended coding the product. but there seems to be a potential rescue plan and we will keep that up and running while we monitor that. i thick it's important to take a step back and really look at it
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as what it was, which was a grand experiment that was supported by some of the world's largest and most notable investors, both in the crypto space and in the traditional financial space to build an algorithmic stable point. had they succeeded, which they did not, it would've had a huge, positive ripple effects. it was a worthy experiment to run a vibrant ecosystem with a lot of risks. in our research has shown that the risks were there as well as the opportunity. ed: we see on our screens you are in florence, italy. lovely, that's a wonderful place. in the heartland of the european union talk to me about the regulatory landscape, the difference between doing business in europe versus the u.s.? your experience of launching these in each market. >> it's different geography by geography, what regulators are looking for can be different.
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we just launched australia's first bitcoin and that was, due to answering very different questions that we have in europe, both in the eu and in switzerland, where we are active. switzerland jumped ahead of the pack by trying to create a crypto nation, so we have been very, very supportive from the beginning out of our base. but as the asset classes has become too big to ignore, other regulators around the continent and around the world have started to pay attention and have incredible conversations with us. >> i think it's really interesting that you had been working on etp's outside of bitcoin, there are so many calls for etf's when it comes to bitcoin itself, but when you look at what happened with luna and the need to halt the product, what has it taught you about products that are tied to other types of assets here in
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the crypto universe that have a lot more risk, potentially? >> so, one of the beautiful things about crypto is that everything is open source, including the smart contract, including the risks that are applied to whatever ecosystem you might be investing in. like i said, our research, very quickly, on luna, displayed both the risk and the potential rewards. it's going to be different investing in it versus bitcoin and a ethereum. again, this was a grand, and i believe, very noteworthy experiment to run. ed: cofounder and ceo of 21 shares in my could make over in new york. coming up, and esg exit for tesla. why the ev maker lost its spot in the s&p 500 esg index and what the world's richest man has to say about it. that's next that we are looking
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at shares of cisco and after-hours down 12.7%. the company talking about struggles with the supply chain, china, the war in ukraine are ultimately cutting its sales forecast to 2022. a stock we keep an ion is the markets go by. this is bloomberg. ♪
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ed: this week, shares of tesla dropping wednesday, the ev maker also lost its spot on the s&p five hundred index, the indices citing working conditions in crashes to test the scores on environmental, social and government standards. elon musk reacting to the news tweeting "exxon is rated top 10 best in the world for environmental, social and government esg while tesla did not make the list.
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esg is a scam. it has been weaponized by phony social justice warriors. ." all elon musk's words, not mine. joining us, who leads coverage not just on tesla, but everything elon musk. and all that noise, tell us what the news was there. >> i think it's clear elon musk knew this was coming. he has been raising concerns about esg systems for several weeks and he has a point. what are the metrics and why are they always changing? esg rankings are very important, but he would argue, we make electric cars, how could we be ranked less than an oil company? ed: the mission statement of tesla is to advance the transitions of sustainable energy. what is tesla's impact on the world? bring us back to basics. we assume everyone knows what the company does and how it tries to help, but what does tesla do? >> tesla makes electric cars, solar roofs, they have big utility contracts, but they have
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been deemed quite a bit by workforce issues. at the fremont plant, they have been sued by the state of california for blatant racism against black workers, the sec is investigating them, there are some problems there. the board of directors have been deemed for overlapping duties and they have been under pressure to diversify their board, which they have done. ed: i'm looking at tesla stock on the bloomberg, down more than 30%, caught up in the selloff as all stocks were, what's the story for tesla right now? we are so focused on elon musk's tweet by oui analysis of what's happening with the twitter deal, i feel like we are not really talking about tesla. >> what's happening at tesla's production in china. production in china took a hit when the factory in shanghai was shut down for almost a month because of covid. now is being brought back online, there still supply chain issues, it will be a hard quarter for them, a lot of macro stuff, they hold bitcoin, it has seen a rough ride of late, there
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is not really any new product launches on the horizon. musk says there will be an ai day in august. what are we going to see their? the new tesla bots? more talk about jojo? more promising -- promises about self-driving? this is a weird year for them they didn't have new products brought to market. >> dana writes a fantastic column for hyperdrive where you talk about what's going on in the world of ev's and tesla. wednesday's column is about insurance. what's tesla doing in the world of insurance? dana: this is the big passion project of the cfo, they are trying to find new revenue streams. they always say they are a software company, not just a car company. they want to have a captive audience with their customers. you buy a car, you get the solar roof and the power wall, you might as well by tesla insurance as well. because tesla has so much data on your vehicle and how you drive it, they can monetize that
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and also offer you a premium based on your driving skills. other insurance companies have tried to do this, but tesla companies who live in texas like it and that their premiums are cheaper. ed: very quickly, what's the next thing to look for in the tesla calendar? you're on the spot a little bit. dana: in the tesla spotlight we will have second-quarter delivery figures in early july. an annual meeting on the fourth. ed: elon musk reporter in chief. that does it for this addition of "bloomberg technology", we are back tomorrow it will follow the s&p 500 biggest drop in the -- and almost two years. don't forget to tune into bloomberg studio 1.0 at 9:30 new york time, emily chang speaks it suitably with the ceo and cofounder about the online gaming platform's explosive growth and cultivating a civil digital community. while exploring new revenue
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opportunities. that's tonight. this is bloomberg. ♪
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