>> i am caroline hyde.

>> i am ed ludlow's. this is bloomberg technology. >> the genesis is the latest concern in a worldwide crypto liquidity crunch. more on how the fall of ftx will reshape crypto as we know it. >> tiktok's project texas. that is the plan to isolate u.s. data. >> and an exclusive conversation for you about telehealth. the ceo of cerebral has come under scrutiny for -- and that a serious conversation to be had. we will check in on these markets. >> we have an idea that inflation is picking the next day. we are followed by good as being bad news in the markets.

they are worried about the federal reserve. a number coming in terms of their focus. we have these rates expected to rise. let's flip it up there. right here, we think about chip stocks and the earnings you will digest. they were down more than 4% on the day. this is about the amount of demand.

>> demand had not dropped off a cliff. this is really boosting cisco. video as well beating expectations. it's actually datacenter in the third quarter has taken a hit from china where u.s. technology export curbs have heard said products but they say sales of the ships have offset that. micron story was over the big story. i know this is not a tech stock. the reason i am paying attention is the holiday shopping season. they say sales will drop in the final three months of this year for the first time in five years.

this is about twitter, not tesla. >> let's take a little bit deeper. that comes after the really concerning news out of micron that sent shockwaves through the chip sector. let's try to pull apart these different views. debbie will from bloomberg. with nvidia, yes, it was a drop in revenue. boy had they lowered their guidance. so far that they managed to overcome this hurdle. >> we have micron saying the outlook for 2023 has weakened.

the demand is still ongoing but this is partly reflected in the announcement that the demand for its graphic processors are somewhat weak. while this revenue has declined, it does feel neatly upbeat. >> china is a big part of the story. they have a 409,000 from the technology curves. but there were bright spots in the earnings report. what did they say? >> nvidia said it was the sales into the chinese market. they say it will offset the 400 million impact from the u.s. export. >> overall, are we expecting

cliff falling? i would just expected that the market will be slowing so much? when you look at micron, it is -- is that more of the rate that we were needing to take? >> it is a bit difficult to say because the picture is a little bit mixed. there are pockets of weakness in the markets. probably a little bit for gadgets like smartphones. they are still spending their official intelligent -- official intelligent offerings. >> they are spreading across the

crypto world. how did we get here? what is happening with genesis? >> the latest is we are seeing the fallout of the ftx bankruptcy that was announced last week. we are already starting to feel the effects. blocked by is said to be headed toward bankruptcy itself. genesis has stopped withdrawals from its yield program. what we are really saying is that spread of the effects of the ftx implosion last week. >> they said the total exposure to other crypto businesses is only about a million dollars and some referencing the price of

bitcoin today, showing some resilience here. showing a lot of this has not been priced in. from your perspective, how much more of the onion is there to peel back? what is a fascinating about your reporting is the extraordinary nature with which ftx penetrated the world of crypto but also traditional finance. >> that is right. the story we put out today was about how deeply ftx penetrated the typical financial markets. he did that just through acquisitions. what happened was last year, ftx bought this derivatives exchange. some people in the industry really pushed back. this would have given them awkward unilateral authority.

this isn't a great idea. the proposal wasn't approved but they came scarily close to being further embedded into the financial machinery of the rest of more traditional financial markets. >> we are seeing all of the chaos of the last seven days. it is astonishing to relive it. we learned a lot about ftx possible in the system. how did it run itself as a business? >> spf was known for coming out and saying they have very sophisticated systems to manage risk. what has really exploded into the public eye in the past week is there was no division at all

to his proprietary trading firm. this took in customer deposits. basically you have this co-mingling of funds that anyone international financial markets would say is a huge red flag and can't lead to all kinds of inherent risks of implosion's. that is exactly what we have seen happen. now the chaos is kind of spreading. >> there is a healthy dose of schadenfreude going on. you were at the conference in chicago which has had to scrub out the name of one of its benefactors which was going to be ftx. how much stock is there in retail investors left carrying it. this is the case of so-called sophisticated investors.

>> it is a good point. we were looking around the fia conference. if i i was supposed to be sponsored at least in part by ftx. it shows how easily it really is. i think part of what is really emerging about this is he had this demeanor that he was a totally open book and totally honest with people and a totally open book and there to answer questions and mix and mingle with the rest of the industry and what is coming to light is it was a very different picture. he was not telling the truth about how his company operated. just this year exposure to traditional finance and the people who mind to the market plumbing, it shows that he calmed a lot of people -- pond a lot of people -- conned a lot of people. >> your deep dive in this story

has been remarkable. coming up, according to the fbi, china's government could use tiktok tickets from millions of users data. we have the tiktok ceo response. this is bloomberg. ♪

>> the tiktok ceo says project texas will bolster security in the u.s. by reinventing user data through a partnership with oracle. he addressed the national security concerns about the

chinese owned the app raised by the fbi. >> for many impact companies including ourselves, one of the largest things you have is your trust and safety. not only from the people who designed the policies around community guidelines but the people who come from the machines in terms of content moderation and protecting the platform and making sure the content is very safe. that is an investment that i think is not -- that is definitely worthwhile. >> how many people do you have in content moderation? >> in the tens of thousands. >> you are in a pretty unique position. you have a china-based logo. you have very big business in america. the previous administration try to force your sale.

>> we clearly pay a lot of attention and national security concerns are concerns we take extremely seriously. as we have disclosed in the past, we have had discussions with the u.s. government mainly -- if you saw the fbi director comments this morning, he made comments that they are working through that process as well. i am very confident because it is confidential. i am very confident that through the detailed discussions we will have, we will come up with a solution that will reasonably address the national security concerns. >> let's continue the conversation with bloomberg's tech editor.

>> this is a way for tiktok to remain in the u.s.. under the trump administration, they were going to be forced to be sold to a u.s. company. all of that is under a less urgent review. can we keep tiktok available to u.s. consumers? what guidelines to be have to put around it? how do we make sure that data is protected so that only those in the u.s. can see it? it sounds like it will not be based on nationality but location. >> when you're talking about

geographic focus, that will be a tall order. >> i think that oracle wants to help but it is unclear that it would even be possible. tiktok already has many millions if not billions of users who are creating data now that will be entangled with everything happening back in china, engineers over in their headquarters there. i think it is going to be pretty impossible. could they be limited in how they reach u.s. consumers? what could be limited about growth in the u.s.? i think it is good they are confident about an agreement

they are going to reach. i think the u.s. government would like to continue to have tiktok available to u.s. consumers but if they see national security concerns, it is going to be very difficult. >> we continue to ask your audience what they think about all of this. we are always shocked by how big tiktok is in the united states and around the world but we ask your audience how concerned they are about their data in particular or tiktok's control of their data, twitter paul, this is the outcome. safety present have responded and said yes, we are concerned about tiktok's control of u.s. user data. what has the response been from the tiktok user base and from political parties within the united states as well? >> i think people are concerned about tiktok having access to their data and i think data privacy has become one of the top issues for consumers over the last few years after all the different privacy lapses. i am not that surprised that is

how people responded to the poll. that is the case for me. there may be some very serious potential national security concerns. how does that change when u.s. advertisers will do with their money? it is something we have seen over and over. people are worried about their data. >> that sort of ship has sailed. that is how the money is made,

advertising. even the success of tiktok has not been immune to some of the downdraft in the economy. we know they have been slashing their own outlook. how bleak is the situation out there right now for some of the key companies? >> it is bleak for tiktok. especially if they are to be restricted by the u.s. in some way. i think that is there -- their biggest worry right now. >> is it looking good for tiktok?

>> i think it would be extremely unpopular for consumers. >> a sarah frier with the latest on tiktok. thank you. coming up, elon musk testifies over his $55 billion pay package trial in delaware. more details on what came out of it. this is bloomberg. ♪

>> time for talking tech. the subject today is elon musk's

qs test updated. he said he had nothing wrong. he took the stand in a delaware trial. a judge will decide if he should keep it back. the moonshot award is in the form of stock options. it was way more than big tech names like amazon -- the lawsuit claims the reward was excessive for a ceo leading multiple companies and should be given back to tesla. in his testimony, musk says he did not know about the internal reward process. he says most of his time has been spent running tesla with less time spent as spacex -- at spacex. right now, musk says he is focused on reorganizing twitter. elon says he barely takes time

for vacations. he caused them in email with a view. -- calls them an email with a view. the focus on whether or not a blue check means anything, whether or not you are verified, that is being pushed into the long grass on november 29. this #, rip jimmy fallon, did you see it? >> i think i confirmed that jimmy fallon is still with us. he was shocked and horrified. the reporting seems to be going that someone took advantage of these latest changes in terms of who is bona fide and who is not. they changed up the jimmy fallon profile with a letter swap and mentioned he might have passed and the whole world was set alight with worrying about jimmy fallon. then it became a meme and a drug.

this is the power of twitter and ultimately, it not working as it should. i am triple checking everything on the social media platform now. >> elon musk did respond. he said six what? the leader tags our community notes. >> it is one that we continue to keep abreast of. keep watching the fallout. there is plenty more that will be going viral. coming up, we are learning about some of the shortcomings when it comes to telehealth which promised expensive health care for anyone with an internet connection. but did it have the right checks and balances in place? we discussed. this is bloomberg. ♪

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>> slowly but surely, we are learning more about some of the

shortcomings of online medical treatment after the covid pandemic spurred a boon in telehealth. cerebral was at once the fastest growing provider of mental health care. ultimately, cerebral was equipped to treat some of the most vulnerable patients. a harvard educated psychiatrist who is now the ceo. i am pleased to say he is doing to me now for an exclusive conversation to assess the past, present and the future. thank you for your time today. i want to talk about a complex issue that is mental health. it is, getting whether or not you are a telehealth provider. ultimately, these are complicated conditions you are trying to treat overall.

how are you now looking to have people talk about their substance disorders? how are you handling cases that have affected you in the past? >> thank you for having me. >> if you look at the average wait times, it ranges two to three months. the current system really is broken. what we are doing is to provide people with care to three days on average. and to measure clinical outcomes.

i just like brick-and-mortar clinics and we have access to your intoxicants to make sure we can verify that patients are getting the care they need. and most important, we have the outcome measures to make sure that the vast majority of our patients do much better clinically. >> the lessons you learned, the fact that you stop purpose -- prescribing controlled substances after the grand jury subpoenaed from the u.s. attorney's office, he received a grand jury subpoena. are you starting to see changes overall? >> we stopped prescribing controlled substances. we wanted to responsibly be able to taper off our patients from

those medications. certainly i have been confident about our clinical programs that are very robust and clinically driven. we have guidelines that are used by millions of doctors across the world as the north star. we have multiple support systems for our initiatives. we again measure these outcomes. >> thank you for joining us. you have been charting a new

course as ceo ever since you took over that role in may. of course, you are a chief medical officer for the company since february of 2021. a lot of the stuff we discussed in this story and other stories be it concerns of nurse practitioners and prescribing controlled substances and otherwise, you are not in the chief executive chair but you where the top medical officer for the company. to what extent do you feel you bear responsibility? we set up some of the most robust clinical quality and safety teams.

those teams have one mandate only. to run quality efforts and safety efforts. we just launched a few months ago a suicide prevention program that proactively looks at the messages we get from our patients. some of them say i want to kill myself. i don't want to go on anymore. we can detect that using machine learning and proactively reach out to those patients within seven to 10 minutes. we don't care if it is 3:00 p.m. in the afternoon or 3:00 a.m. in the morning. this service is available to all of our patients 20 47. we don't charge them extra for that. this is just one example of how we are using data science and machine learning to make care much better relative to the standard of care today. >> when we talk to you advanced,

you said you could not comment on any individual cases. i hope you have been able to read the story. is this the sort of care that patients should be expecting to receive? the sorts of cases outlined in bloomberg's most recent reporting? >> i have been very confident in our clinical programs from the beginning. i have referred my friends who have used the service. it is something we really believe is above the standard of care. >> ultimately, this is a high-growth start up cerebral was in. do you think that is ultimately the right environment for telehealth? >> good question. i will give you a story. this is in the matter, a sample of something we see all the time. bill received his therapy and

his therapist so he was in his pickup truck on the side of the road and he asked why are you in your car? he said i am not ready to tell my wife and my kids that i have really that important -- depression. our mission is to democratize access to high-quality mental health care and we are reaching populations that have been historically complete the cut off from the mental health system. it is not and if they don't have a stable go of the next psychiatrist, they don't have anything else. we want to be there for those populations.

throughout 2021 and some of early 2022, a big part of the efforts was the gymnast, simone biles who brought mental health care to the forefront of her own story when she stopped competing in the olympics. is that partnership still active? >> yes. we really support some on. i have to say that her contribution to mental health is immeasurable. it is very significant. some patients come to us and a very directly contribute that they are reaching out for care because of simone. we are very appreciative of the partnership we have. >> you say that bill could not have gotten care anywhere else. there are competitors out there. we look at numbers, downloads of cerebral have gone down to

10,000 in october. how do you recover from your own valuation? you slashed by about 95% on internal valuations. >> what it will say is that we have made a conscious effort to decrease marketing so that we can grow sustainably. i am very optimistic and confident in our business model going forth and demand for high-quality mental health care wealth -- grossly outstrips the supply. we are seeing very positive signals in terms of our partnerships with large insurance companies and other ways to get patients the care they need. >> we want to thank you for our time today. of course, her bloomberg reported, thank you for joining us. meanwhile, coming up, the ftx contagion makes its way to gemini.

this is bloomberg. ♪

fcx is one of these absolute travesties in the history of financial markets. people will lose billions of dollars. >> people will lose billions of dollars. that undermines trust in all financial markets. >> which of the industry do to survive and make itself better? my opinion is more collaboration.

quick there was actually one new report that this lending platform may actually continue olympic. the broader market distancing liquidity. quick some of the voices from bloomberg's new economy form reacting to the crypto contagion. for more on the future of the industry, let's bring in >> crypto contagion, give us the latest reporting on the following from ftx. collecting a few things. whether this is directly tied to ftx were tighter withdrawals and other things, you have blocked by saying that they could announce a bankruptcy filing within days. you have that issue of withdrawals you see over at genesis global capital which is the lending arm associated with

the genesis family. genesis is a huge counterparty in this business so people are watching that very closely and announcing whether they have been exposed or not. you have gemini earn in that relationship has had them pausing withdrawals. a lot of questions about how customers can get their money back. what withdrawals look like and how far this contagion will spread not only among the ftx customers but the customers of the companies i have named in other exchanges as well. >> let's bring you in here. first, ftx, genesis, your some other names from her there. what is your reaction to this idea of contagion? what does genesis represent of what is happening in this industry? >> in the last two years, there was extreme growth into centralized lenders.

what they did is they gave insecure loans to market makers and took deposits from consumers and during the zero interest rate world, we saw the extension of credit to parties that were perhaps not really credit worthy with very little collateral requirements at all. this funding on paper produced a huge number of profits. as rates tightens, they were unable to keep the capital they needed to issue these loans the people the event to had gone or streamed -- going to on cryptocurrencies. that led to this extreme credit crunch we are seeing right now.

it is sort of fitting that they are the end of the contagion. >> how far does the contagion then go another we have new firms that are saying they are pausing withdrawals? it is unclear how far that goes and to all those counterparties might be. >> for sure. i think the interesting thing is the majority of the borrowers were market-making firms, more traditional market-making firms. as well as these alameda type market makers. i think the real question of contagion really boils down to how well decentralized lenders lent relative to collateral.

alameda saw a lot of collateral that was marked billions of dollars whose real liquid market cap is 50-60,000,000 dollars. >> i am curious if we can look past what is happening day today here and look forward six months into the future. what is the industry look like? >> i think it moves toward decentralized finance quit a bit more. you can effectively think of it as customers can always withdraw and they will withdraw ahead of shareholders. the idea that withdrawals are prioritized over shareholders ensures you don't have these sorts of credit crunches built in the system. that means you are more collateralized. they all blew up at the same time. i think we are trending toward a more collateralized world and

the next month to two years unless rates go down. >> if you look at the dislocations in the industry right now and certain assets, if you look at bitcoin lenders, if you look across the industry, what are the pricing dislocations that were you? there are a lot of close relationships.

everyone knows what collateral everyone has. >> after multiple delays, assess test mission to the moon is underway. this is bloomberg. lift off. ♪

>> we are going viral and intergalactic. after years of delays, nasa's

artemis mission to the moon and back is underway. the most powerful rocket in 50 years is sending and unaccrued capsule skyward. he has focused on sending astronauts back to the moon's surface by as early as 2025. let's talk about this with lauren. we can see a take off in the night. what did you make of this step? it seems a long time coming. >> you have to understand the surreal nature of watching this rocket launch. i think i have been covering this rocket since i started reportingeight years ago but he finally launched, there were some moments during the countdown when we were unsure if it was going to take off last night. it was a sight to behold.

>> i felt the rumble of the rocket going into the atmosphere. i completely get what you are saying. there is a serious point all of this. there is a mission here. talk to us about what will be happening with orion for the next 25 days. >> the main objective of artemis one was to debut the massive new rocket and the orion crew capsule and put together -- put them together on a flight and show they can actually send a mission around the room -- around the moon safely and return it to earth. 1.5 hours after lunch this morning, they conducted something not as a transmitter injection. that sent it on its first -- on his trajectory to the moon. in the next week or so, it will insert itself into lunar orbit.

it will stay there for about a week and then he will come back home and it will attempt to splash down the pacific ocean intact with them raising temperatures up to 5000 degrees fahrenheit. that will be a big test as well. if we can send people, just to be clear, there is nobody on this flight. it was just a test to see if we can see this hardware into space safely. >> frustrating for many, artemis 2 will go up for another couple of years. >> that is kind of the downside of this program. it will take a lot between this mission and the next one. nasa is still targeting the first landing as early as 2025. there is a lot of time between these missions.

we will be patiently waiting for the next one. >> that does it for this one. we will deep dive on the cisco earnings you were bringing us earlier. >> don't forget to check out our podcast. that is it for technology. this is bloomberg. ♪

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