>> i am carolyn hyde. i am at bloomberg's world

headquarters in new york. >> this is uber technology. as violent protests at apple's main iphone plant in china. the latest on the bloomberg's group that could impact sales and of the holiday season. crisis end been freed says the ftx went from 66 billion dollars to $9 billion. more on how he got his start on wall street. >> elon musk is having second thoughts on that motivation counsel after he says activists broke the deal. meanwhile, let's check out these markets. how to respond after this. the nasdaq up almost a percentage point. this comes after the federal reserve that came out at 2:00 p.m. today. this giving the meeting little tidbits from what was being discussed in the key take away. it may be that most people at the federal reserve think we

should be hiking at a pace of 75 basis points and into infinity. they do think we are going to slow down the pace. maybe a peak in terms of this rate hike cycle. we are also seeing the riskier assets like to getting a bid. they got a holiday shortened week. flip it on here. what is also at a three-month low? the volatility index, the fear gauge. we are seeing some muted volume there and maybe just a little bit of overall lack of concern that really is not evidenced by what we will talk about in the media. >> yes. i want to go to -- i want to go straight to the markets. tiger has written down a markdown of its private investments 24% this year. almost a quarter. we know about what has happened with valuations in both private and public space.

we look at some of the names that have valuations that have come down. tiger global feeling the impact of that across private and public markets, using or marking down assets by about $42 billion according to the bloomberg school. incredible reporting. go into the public markets, very interesting day here in the united states. the worst performer on the nasdaq, 100. we will talk to the ceo later in the show but they cut their i look for billings. we want to know why. another bloomberg's group. according to sources, vista equity partners are in talks to acquire that software name. tesla rebounding in what way. almost 8% higher after ongoing declines. a number of names in the market saying the selloff in tesla was overdone including morgan stanley. closing up .6%, the biggest

report overnight, protests at that factory, the key production site for the iphone 14. i know we will get to that story. >> we will dig into what happened. the main iphone making plan in china. hundreds of workers clashing the security personnel after almost a month under tough covert restrictions. ian king is here for more clean -- is here for more details. you follow foxconn in particular. had this been anticipated? what output does this have on the output as well as the people? >> from an apple perspective, this is not entirely surprising given that we have seen increasing pressure in china. people essentially fighting back being sick of these covid lockdowns. for apple, this is not surprising. they are kinda boring this is an escalation we are seeing some form of open protest and open resistance to these rules. if you take foxconn's word for

it, everything is ok, don't worry, it is just a dispute. everything will be fine. but in the overall context of what is happening in china, the videos that some of our colleagues were able to take a look out for are very worrying. cracks you cover -- >> you cover a broad range of technologies for us. this is really difficult for foxconn. what does it mean broadly about u.s. china relations? technology is at the heart of the conversation. quite 100%. you have an escalating trade dispute between the two largest economies and what is being used by the u.s. as the chief tool to attack china or hold china back. technology in semiconductors in particular. you have this escalating dispute but that part of china is an absolutely crucial part of this diverse, wonderful, call it what you like, complicated supply

chain that spans the globe. there has to be some huge changes. those changes at least for investors could meet large amount of costs and the ability to relocate some of those factories and expertise that exists there. cracks want to watch from a personal perspective and from an investor perspective. let's continue this conversation. let's get the investor perspective. disney, amazon, metta, 70 conversations to be having with you. let's just talk about the apple conversation, i worrying is this? quite the reason i find it worrying is this is when we know about. which are the ones we don't know

about? this has been a very tentative rollout coming into the holiday season. if more is happening, that means we have to have more bad news into the beginning of next one. -- the next one. >> this is an interesting story. >> nick cannon 44 out of every five-14 pro handsets. when you look at the stock story, the equity story, are you worried? this is the stock that is fed better than the s&p 500. there are a lot of voices in the market saying i am not sure how impactful this will be in either direction for apple. >> you heard about the importance of that part of the world in terms of the concentration of cheap manufacturing and consumer electronics manufacturing. the much bigger problem has been around global demand. everyone has expect -- accepted the supply chain disruption. it will be par for the course for a little bit longer.

the big uncertainty is how his consumer sentiment? how is consumer debt going to downplay the expenditure on discretionary items like the iphone? i think those are the bigger drivers. >> let's delve into that. you do have a wide array of investors and areas you would like to focus on. retail first and foremost. talk to us about how apple products will sell but also how every product will sell. >> this is not the first time. my background is private equity. hiring consumers tend to work with the lower income households that really struggle. the higher income individuals tend to trade down. we have seen that with walmart.

i am sure some of the best buy news and people are bargain-hunting, that is your higher income consumer trying to find a really great deals right now. that is a struggling household that has been hit hardest by energy prices. i think we are going to see value retail do very well because everyone is doing that and i think we will see luxury hold up. it is painful as always. the same people seem to get hurt, the same people seem to win. do the same players win? i am thinking of amazon. this is a company that has become so large in every part of our lives. we consume the individuals, are they going to do well navigating the environment? >> i love this about amazon. i think amazon becomes its most innovative when it comes to these client environments. amazon really announced telehealth services. they have been trying to push into health care.

they have been looking at ways to integrate into their prime services but how are we going to allocate our capital now? it will not be on consumer stuff. it will be on places like health care. i think those papers are the strongest indicators right now about whether or not he was a longer-term investment trends. cracks and other huge story of the week. disney. your reaction as an investor? i would take that back. when i saw that announcement, i think it is very good to have as a pair of hands back in the saddle. i think when you look at what has happened over the last six to nine months, whether it is private companies or public ones, the businesses that have had bad news, whether it is a group -- attrition subscription

and netflix, let's use that word again, bifurcation. ones that have come out with a plan have been awarded. netflix. we don't know if it will be awarded. the ones with no plan, snap had been punished. disney will be somewhere in the middle. so we have a trusted, safe pair of hands back in the ceo seat we have to hear what the plan will be and until we do, i think we are going to have some uncertainty around disney. >> we are so great to have you to wrap the news but give us the and berry 23 talk and barry 2023 outlook. >> i wish i were that they of brilliant news. i think we are rising -- writing the sort of bubble. i think this issue of how much the consumer is suffering not just in the u.s. but also in

europe, i don't think we talk enough about europe and the u.s. and the impact, i think we are going to see that filtering through in 2023. i have been looking at much safer stories right now. much less discretionary spending. quite all right. coming up, we will bring you the latest in the ftx debacle and sam backman freed poss apology. that is next. ♪ get refunds.com powered by innovation refunds

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>> it is still the story of the week, the month, the year.

let's dive deeper into what propelled this. bloomberg plus any message joins us on what we learned from the bankruptcy hearing again. what do you make of any sort of apology coming out? >> he has apologized now in a letter to exchange employees and he sort of said he wishes that they did not end up in this place, that he is sorry for what went wrong. it is up to those employees who have really experienced dramatic fallout from this implosion to decide whether that is enough of an apology for them but he is still speaking out about what happened and giving his side of the story. >> each day, a new name comes up. the latest name is jane street. could you explain to the body the relationship between sam beckman freed and jane street?

>> sure. sam ran ftx, the now bankrupt crypto exchange. once the second largest in the world but before all that and before this dramatic downfall, he worked at wall street trading firm called jane street and jane street is really known for its obsessive focus on risk. it is a very successful trading firm and his pedigree and background there is what helps him get to the level that he got to. it is part of what helps him impress vc investors and crypto. they are known for attracting high iq math nerds. it is known for his love of puzzles and games and just for his success but it is a very stealthy firm. in our story, we pointed out that ftx does not seem to have

got to bear the focus on risk to its own enterprise to say the least. >> exactly. the fact that overall, they were trying to learn from previous mistakes and analyze what had gone wrong, keep on innovating and looking at risk, he seems to have done basically the opposite. many would say because of the way that the company grew. the bridge he built between crypto and traditional finance and regulators. how much of that has been undercut by what he was up to? >> he had this background from a traditional wall street firm, from traditional financial markets and ftx. and they are well known and very well respected. he brought his pedigree to the world of crypto and it helped ingratiate him and help to make

other investors feel comfortable with him and helped really -- helped him impress them. what has evident ftx has really boggled the minds of those vc investors of traditional wall street and crypto as well. the way it has unraveled so rapidly and the intertwined ties between alameda, his trading firm and hedge fund and ftx. it has really shocked everyone in other spheres. cracks very terrific reporting there from annie. thank you. coming up, we will be joined by andrew to talk about his vision for the company and have it is navigating a pretty challenging macro economic environment right now. this is bloomberg. ♪

>> autodesk slumped as much as 10% on wednesday before pairing losses. still, it was the worst performing stock on the nasdaq 100. this after a cut is for your bill is outlook and demand for multiyear contracts felt as customers preferred one-year contracts. that was the story. it is also the challenging macro environment. fortunately, the ceo is here with us. i guess the question at this point is why? why are customers behaving in this way? what are you learning from your earnings report this season? >> we are learning that the business is highly resilient and diverse. we are learning about a lot more out of china and russia but also sensitivity to currency fluctuations. we see that going forward. we are also seeing softness in europe. like you said in the

introduction, one of the things we are trying to do is move our customers away from paying upfront for multiyear contracts to buy multiyear contracts that are built annually. when you're entering uncertainty, people conserve cash. that is what you saw. i think a lot of the reaction you saw with the stock was not about what we were talking about in the next quarter. it is about some of the signs we were projecting about last year. >> talk about those projections. many of the analysts out there talking about how you are very optimistic back in 20. almost too optimistic. due to macro, may be micro, you are having to pair that with how hard it is in this environment to forecast further than the next year. >> we were optimistic before the pandemic it. certainly we performed incredibly well through the entire pandemic but what is really making it hard right now

is the unprecedented volatility we are seeing in the currency exchange rates. we signaled that there was probably a five-point headwind on our reported revenue just from currency headwinds. europe is not getting enough air time according to some. i would tend to agree with that. we're about to go into a russian winter there. that is going to inject more volatility and concern into our end markets and other peoples and markets as we move forward. it pays to be cautious as we get through this winter season and go to next year. currency fluctuations make it very hard to know where things are going to go and some of these concerns with regards to energy cost in europe are affecting some of our biggest customers. >> taught fundamentals. how bleak does the economic outlook look in europe? do you have to start pivoting

away? deciding to change up your business? look at the way you would penetrate more broadly? >> absolutely not. you are right. constant term as he was, or business looks a lot stronger and europe continued to grow. it just slowed. i think it is important to recognize that europe will continue to slow but here is what is important. the customers using our buttocks working on critical parts of the economy. they are working on buildings and infrastructure. manufacturing. they needs -- they need these products to complete what they are doing. in tough times, they invest in greater digitization. we want to partner with our american and asian customers to help them digitize more effectively in a world where they are telling us they have capacity problems. labor shortages, material access shortages, they have more business they can actually execute on right now. that is what we have to pay

attention to for the long term. >> you guys make software for architects, the construction projects that help with design and i know you want to move into other areas. that leaves me with mna. i know there is some chatter in the market about some makers. have you tried to buy a name like that? >> we never comment publicly on mna but what i will say is we have always been an inquisitive company and we are super interested in growing adjacent around our business. we are always looking at things that lean into the future of where our market is going. look for us to be continually inquisitive. valuations have reset quite a bit this year. we were less inquisitive than usual. but look to us to get back to our normal levels soon.

>> another story is hp cutting up to 3000 jobs but in terms of financial discipline and reacting to the macro picture, what cost-cutting measures are you taking? >> we have always been really disciplined going through this entire cycle. we have never tried to get over our skis in terms of investing for the future. we have tried to invest strategically. we have taken adjustments as we have gone along. we have always done small adjustments. we feel we are in a very good place that we can prudently vote for. if there is a problem, we just turn off the hiring state. >> a pleasure to have you with us. thank you. elon musk is quoting himself through his tough test today to justify his current twitter strategy.

we will talk about that next. this is bloomberg. ♪

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>> >> welcome back to bloomberg technology. i am carolyn highly in new york. elon musk pulling out another

rabbit out of the hat in terms of the twitter saga. what is he doing now? >> everything we have talked about has been so focused on the opening. the layoffs, how it is structured but what about the platform? the activity appears to have had an agreement with have reneged on the bargain, the deal which was part of his reasoning for forming a moderation counsel. go back a few weeks. he talks about this moderation counsel being a wide and diverse range of voices that would make content moderation and policy decisions. . two key things have happened in recent days. he said he would not reinstate president trump's twitter account without being informed by his moderation counsel. he tweets the pull on your screen. the majority of respondents vote in favor of reinstating trump. on the following day, the 19th, he does but trump says he is not

interested in returning to the platform. he is sticking with true social. present day, he tweets. what is not clear is does that mean that he is done with moderation counsel and that idea is over or doesn't mean it has been compromised or undermined by activists? we don't know who they are specifically but it is an interesting question because we are starting to see is platform decisions. things that impact your my ability, the body's ability to use the twitter platform. >> let's talk about how he uses the platform himself. it is taking a lot -- he is taking a lot of his own advice when it comes to his management style. he writes that the new twitter seo is impressed by points he wants made previously as the tesla ceo.

it is a really amusing article but you are sort of poking is something that is brutally real that he keeps getting some sense of self inflation by the wisdom he has given in previous years. >> in the article, i focused on a funny phenomenon that anyone who follows elon musk will recognize which is there are these fan accounts that do nothing but tweak quotes from elon musk and he has a tendency to respond to those in the affirmative. he will see something he has already said and respond exactly or grade-point or whatever. that is pretty funny just as a behavior and who knows? maybe he is doing it as another kind of troll but i think it is interesting because we are seeing this gigantic, large social network. he paid $44 billion for this thing. he borrowed a large sum of

money. so many decisions are coming down to the whims of elon musk where he is deciding whether or not to ban or on been people based on seemingly how he is feeling at the moment. we are also seeing a situation where the circle of advisors seems to be very small and seems to mostly consist of people who are basically telling them what he wants to hear. when you back away from twitter, you see that elon musk is also running a very large electric car company, he is also a major defense contractor and you have to wonder -- people who work at these companies have to ask themselves why he is spending so much time talking to these want to be -- want to be talk so just want to be talk show hosts, these meme accounts. he was tweeting with something called captured. it is not necessarily the behavior you would expect from somebody who is taking a rigorous or serious approach to

running a social media company. instead, it is somebody treating this like an influencer. he is planed to the crowd. >> yes. you ask at the top of your column, reality distortion field anyone? talk to us about that reality. we have come in for criticism about how we have covered musk's twitter to over but what we have to go on are the tweets he makes. what have you learned from his tweets since october 27 or 28 when he closed the deal? >> a couple of things. one is the reality of distortion field cuts both ways. over the last five years or so as we have been talking about him, a point that lots of people bring up is that he is an amazing marketer and there is this sense of a different reality. a sense that everything is possible. that stuff really all worked to his advantage and has allowed them to build the largest most valuable automaker pretty much

against all odds. i think what we are seeing is the other side of the coin here. he is in this very -- it feels like a very narrow world. he is sitting there reading dimensions. his point that the journalists are out to get him or the other day he was accusing the associated press of being part of the far-left establishment. it is pretty hard to know how seriously to take that stuff. it feels like it is mostly just about trying to juice engagement for twitter. as twitter has continued under musk, he has been putting -- posting these charts where they gained a million unique visitors over twitter over the last week. but it goes like this may be very shortsighted. >> we always like your long-term and -- long term perspective. meanwhile, one of the things we are all noticing is the employee exit is at twitter has been raising concerns about diversity at the company. lots of pictures circulating

about far more males there. we want to look at the metaphors now. women are spending more time in the meta-verse and they are more likely to spearhead initiatives in the next generation of the internet but men still hold 90% of the executive positions. the report says women are still locked out of leadership roles. key to establishing an inclusive meta-verse. women hold just eight to 10% of leadership. for more, we want to get into more of this what is really interesting is we went to our audience and we put a poll that said do you work about lack of diversity in the meta-verse? do you think it is going ok or why should i care? most said why does it matter? why does it matter that it is

diverse? >> if you look at the history, women in particular and people of color have been at the center of innovation. yet they don't hold those leadership roles. if you don't have those voices at the table to make sure that the build has all of the inclusiveness and richness that is offered by innovation and technology, you are missing out on that opportunity. >> how are you seeing that reflected in the first part of what is being built in web -- web three? >> we don't often get to highlight them in the spotlight. i think that is sort of damaging in terms of how you think about where we are headed in the future. the democracy that was promised in web three. but we are already seeing that even when you look at ai and other types of technology, it is not being fed properly to reflect the diversity of the

people that are going to be consuming it. it is necessary to have that innovation at that conference and at that table. >> i love what you said about different types of technology. i just want to draw some of my reporting experiences over the last few years. i was reporting on self-driving. i had a conversation with the ceo about this very topic. she made a very simple point. they are designing a product. it is a future product that does not exist now. fully self-driving video. -- vehicle. if you are designing something that is for people of all genders and creeds, you have to have those people involved in the process where the product does not reflect your market audience. is that same principle applicable to the meta-verse? >> absolutely. it is the same type of idea about technology and future focused sort of living, working and play.

the ideas are generally the same that if you want everyone to participate, if you want to have a profitable product, you make sure everyone has a voice in that so you actually are a company that can thrive in the next generation. >> what you want meta-and companies like metta to do? meta-dominates the market for virtual reality headsets right now. they are sort of the real world manifestation of the meta-verse. what can they do to solve this problem? >> you just need to do an outreach to those large groups of people who are sitting here waiting to actually participate. i think what we look at is web three is already starting to prove that there are individual entrepreneurs who are out here innovating and creating for the next generation. if you want to participate and you are not already in web three, you are going to have to reach out to the people there who are building and creating.

metta is not just there as the only company making a difference here. it is actually some of the independent entrepreneurs that are. >> we did see in the nft space women coming together. a lot of it felt celebrity endorsed in some way. coming together and trying to build some art. i think a lot of it was hot women but i do think that is all inclusive. i am interested in what you think and be done in the here and now. that was the evidence in the particular form of web two. what is being lost now? >> i think what is being missed now is the opportunity to actually have a very expansive idea of what the meta-verse can be. i think what we often look at is

just the technology but we don't think about how the technology can actually solve century-old problems. i think for example, we have a health care system that is really crippled. how everyone is innovating. there would be fantastic. i actually think that when you think about how women participate here, they don't really want a casual sort of focused opportunity. they want to deeply be engaged, whether it is about health care or the way that they live and to exercise, they want everything to be lifestyle and have real user experience here. that is what women bring to this. i think with respect to how you thought about the art and you mentioned nft is, i think the

people who were artists really want to reap the benefits of actually having built something that people appreciate and in previous generations, once they sold their piece of art, they never really saw any benefit of that later on. until the nft gives them the ability to reap that for many generations to come. >> we want to thank savanna, thank you, have a wonderful thanksgiving. thinking about entities and thanksgiving, i'm not sure if you saw that macy's is doing its first ever nft parade balloon. basically right here, right now, you can go on and vote what you want, this nft of a balloon to look like and then it will be a reality in real life come 2023. it feels extraordinarily like --

like extraordinaire for the good timing. i am hoping these really old brands are still focused on the digital and the year and the now. march the macy's parade is a mainstay for a lot of households. they split this audience. i am not sure which one i am turning into. >> coming up, we have so much more to get ahead of our thanksgiving turkeys. we will discuss how regulation will shape crypto markets. this is bloomberg. ♪

at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. >> bitcoins rate is at an all-time high. that is a real indication of the

security of the network. on the theory and, we are seeing the total value at 24 billion. that was an all-time high. we think the infrastructure is working beautifully. >> testified there investments made in going base and crept out. they will hit a million dollars by 2030 despite the current fallout of fcx. joining us now to discuss all of this is something that you invest in bitcoin companies. to that end, how much has your world been overshadowed by what currently is unfolding with fcx? that is the centralized part of a future and hope.

that is a lesson that we get in every bear market. as long-term equity investors are focused on the sustainable value and enterprise values specifically and that has not changed in any fundamental way, instead, what i think has happened here is the silver lining is that this narrative has been washed out. it has been necessary for them to advance as a whole. >> let's get to that fundamental question. i always keep a bitcoin chart handy. go back to november 8 and november 9. look at the far right-hand side of your screen. that is where it happened. between june and october of this year, we traded sideways on bitcoin. what is the fundamental -- what

gives you the faith? that it will reach prior highs? >> of course. first of all, bitcoin fundamentals are intact. what has historically been a point where bitcoin is the adoption and expansion of bitcoin's utility set. we see kathy would note that the hash rate is up. we seek less volatility than we did in the last market which is an indication of increasing

levels of sophistication in market participant spent it also reflects higher trading volumes in contrast to the prior market. >> what i'm interested in his thinking more about the ecosystem. you say it is getting built at a very quick clip. what helps or hinders right now? the governor today is talking about a moratorium. this is just basically about energy efficiency here. how much does this hinder the overall idea of bitcoin as a process and building around it? >> that is an interesting point. that was one of the pet means which is that proof of work is something that is inherently a malevolent activity. of course, we know it is necessary to be able to secure decentralized ledger like the bitcoin ledger and in addition to that, we know that proof of

work is quickly shifted to rely on sustainable energy sources. i think it offers the opportunity for other industries to take an example of what can be done in adopting sustainable energy sources. a note on one of the other benefits. ftx leveraged their novel and native token ftt. they would do scaling in both their size and power and perceived authority.

i hope that by seeing or finding that some of the leaders that regulators might have the trust for, seeing them -- the operations being made transparent and having dishonesty or misdirection revealed would allow regulators some time and space to ask the hard questions that could lead them to better understanding the truth. >> thank you. , coming up,'s plan to help the movie theater industry. this is bloomberg. ♪ ees through the pandemic, innovation refunds could qualify it for a payroll tax refund of up to $26,000 per employee, even if you got ppp. and all it takes is eight minutes to find out. then we'll work with you to fill out your forms

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>> going viral today is the uber

scoop on amazon's big plan for its content budget. we have been making tiktok's about it because, as i was bent over a billion dollars a year to produce movies that will release in theaters and alleged commitment to cinema by any internet company according to sources. that would be 12 to 15 movies per year. amazon has been something of an ally to these theater groups while other streamers like netflix have sort of struggled with a strategy to release content on their service in theaters or indeed simultaneously between the two. netflix pleases dozens more movies per year compared to what amazon reduces but amazon did like to get into theaters. when i first acquired movies at film festivals, eventually earning academy award nominations for the big sick and manchester by the sea and then they went on to buy mgm. despite declining ticket sales, filmmakers, talent representatives are all pushing for media companies to embrace

leaders. i really think this is evidence of commitment mgm and the fact that people perhaps do want to consume movies in different kinds of ways. twice when amazon bought mgm, producer jackie lopez said manchester by the sea. i can't name another one from amazon. i did love rings of power. that is a tv series. interesting to see what happens. >> meanwhile, that does for this edition of bloomberg technology. we will take a break on tv for thanksgiving but for us on social. >> yes, wherever you get your podcast, this is bloomberg. ♪

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