caroline: i'm caroline hyde in new york. coming up, biden tours a new embassy as chipmakers double down on american-made semi conductors. more on the impact on the tech sector, costs, and benefits. ed: and the launch date for apple's electric car. caroline: and why robinhood is rolling out a feature for users. we will discuss this with the chief brokerage officer. but first, we turn to the markets. another dull day. s&p 500 up 1.4%. the worst day. we are looking at the banking sector, under pressure.

maybe some nervousness was signaled by morgan stanley's layoff and the slowing of hiring at bank of america. this is adding to concerns about economic slowdown, headwinds, and the fed that keeps hiking. let's look at the overall perspective on the market. look globally. equity indices in europe and north america and asia all under pressure. the story of dollar strength for foreign exchange. it sovereign bonds are the haven of choice. yields lower across the board. money is pulling back in quantities. ed: a lot of red on our screens. i was looking on twitter to see

what people were talking about. warning signals from bank ceos. big tech was caught up in that. apple and microsoft dragging. a report on apple for later in the show. meta down. the eu is voting in favor of rules that would impact their targeted ad based platform. the bright spot is jd.com up 2%. a change in policy in china around covid. the other big story is chips. we are looking at the vip list gathered in the arizona desert to witness an unveiling of future plans for manufacturing

semi conductors. the names at that event are some of the biggest percentage decliners but as i look across sales, they are optimistic about what it means going forward. caroline: what is the cost? how much does it end up being an economic effect to the u.s. in general? biden and tim cook were at that meeting in arizona and we expect apple to announce u.s.-based investment and they plan to build a second facility. here is what tim cook said. >> we work to manufacture chips that help power our products of the world. we look forward to expanding the

work in the years to come as tsmc forms deeper roots in america. it is extraordinary, what chip technology can achieve. and now thanks to the hard work of so many, the chips can be proudly stamped, made in america. caroline: a big pr event. en, what is your take -- ian, what is your take? this is small for tsmc. how big a deal is this? >> it depends. if you slice it on the terms you gave, it's not big. a modest sized plan for tsmc.

even if it grows to full potential, it's less than 10% of their overall production. so it is a start, which is the best way to describe it. caroline: a start that takes years to build and produce. tell us what you think the overall supply chain looks like in the u.s. and how -- and if tsmc will be joined by others. how much will we see a reduction on dependence in taiwan and china? >> there's a lot of pushing and pulling going on now. arizona is the latest example. tim cook is really good at supply chain management and

understands the product. they want greater diversity in the supply chain but it is not necessarily what tsmc wants. they want more efficiency. that means having plants in the same place. and then you have geopolitics on top of it. ed: we are talking about a gathering of the great and good in global technology in arizona. there is also a technology story that what they are building ends up being obsolete versus what tsmc is doing in taiwan. can you explain the difference between the initial 2024 plant and what it means in the scheme of things? >> back to the geopolitics and

the push and pull. taiwanese got pushed by nvidia and apple and customers saying they want more so they pushed it further forward but it still will not be cutting edge. tsmc is under pressure from their government not to stray far from the nest. taiwan government want the islands to retain status as the premier location for semiconductor production. so pushing and pulling. ed: thank you. we are joined by jennifer. intro that uses software to help companies manage supply chains. you have 25 years of experience assessing risk. you heard what caroline and i

were discussing. is this a significant step forward on short domestic production? >> i think it is a great first step and solves two areas. one is around manufacturing and logistics, where you see the establishment of plants and country. the second is labor. a lot of jobs will come out of this and reskilling of labor. ed: biden is in arizona. let's listen to what he had to say. president biden: as we see in phoenix, the u.s. is a top destination for companies across the globe looking to make investments because of our world-class committed workforce, union labor. ed: world-class. skilled workforce.

is this a game changer for the u.s. from that perspective? >> i think we were a big manufacturing entity during the world war senate left and you see part of it coming back. there was a try from consumers and that is what tim cook spoke to today. it's a start and we will see how it shakes out. the ceos we work with that are focused on transparency of the supply chain are not just concerned about finished goods manufacturing, but where raw materials are coming from. they are some of the concerns. caroline: and geopolitics abound. we also think of china, u.s., europe. your company does great studies and you use artificial intelligence in your reports.

talk about how the u.s. is doing right now with resiliency when it comes to global supply chains . >> globally over the last three years we figured out that the supply chains are fragile, brittle, and just in time. so we all really need to understand what countries and supply chains we are relying on and if we have alternative sources. in the u.s. we are feeling shocks almost once a quarter. it cannot remain profitable and that keeps happening. caroline: we want to bring our audience the investment opportunity and it seems like

this is a big one. if the u.s. sees it as an investment in somebody's -- in subsidies. what do you see in terms of the technology that could help here? >> four big lines of investment happening now. the first is around labor. how do i retrain people to have a skilled workforce to get what i need from a supply chain. the second is manufacturing finished goods or logistics. the third is understanding the transparency and monitoring the global supply chain so that when interruptions occur, how to preempt those to keep operating. on the fourth, and what customers are really pulling us

into, how to get closer to suppliers to collaborate to make the supply chain more resilient together. caroline: jennifer, thank you. coming up, our exclusive on apple's plans for the secretive car project. how autonomous is it? this is bloomberg. ♪

ed: apple plans to release a $100,000 car, a little later than expected. they scaled back plans for the electric vehicle and postponed

the target launch date to 2026. mark joins us now with the details. >> the biggest new detail is that apple has scaled back from a level five to a level for car. the original approach they had been working on for years is a fully autonomous car with no steering wheel or petals. essentially upgrading the driver to a passenger, someone who can relax in the car while it drives. if they downgraded that to a level for. you will have full self-driving functionality but only in certain areas like freeways and highways. so the idea of this operating on city streets or in snow or rain, it will not happen at least near term. but maybe eventually as they expand. the other details is the delay.

they recently targeted launching in 2025 and now it is 2026. caroline: why? we can imagine how big a task it is to go from phones to cars. but why the delay? >> mostly because a fundamental shift is going on with the project. the interior, mechanics, software, a lot of redesigning needs to go on when shifting from a level five to a level four. they still need a partner to develop the underlying base of the car, steering and wheel system, the parts that connect to the steering wheel, underlining -- underlying

electronics and the battery. drivetrains. then the self-driving technology. a level five is a dream and i don't think it will be realized near term. i think it will be at least 30 years where you can plug in where you are going and know that you will get there safely without issue. ed: that is certainly a trend we are seeing. you have been busy. the other big story is apples app store where they overhauled pricing. >> they are trying to make the cap store more interesting to developers. -- the app store more interesting to developers. they want to show why it remains the best store for now.

it's the only way to get apps now but there are indications there might be alternatives in the future. upcoming regulations in europe, different rules by governments. so they have to keep making the app store more interesting to developers. they are expanding prices. things will go from $.29 all the way up to $10,000. there will be easier ways to handle currency functions. caroline: mark, thank you for making the time to bring us the scoop. coming up, the crypto capital of

miami is filled with reminders of ftx empire but some true believers still have faith. we will discuss this next. this is bloomberg. ♪ ♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place that you want to keep in the family or passing down the family business or giving back to the places that inspire you. no matter your purpose, at pnc private bank, we will work with you every step of the way to help you achieve it. so let us focus on the how. just tell us - what's your why?

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>> i think for us, crypto was the slingshot in the david and goliath story. if we are competing with someone bigger and stronger, we have to be smarter. that was how we were going to become prominent in this technological ecosystem. caroline: a couple of months ago, the miami mayor on the city's push into crypto. but what was supposed to be the hotspot is now the sight of trash bags full of ftx freebies.

we want to bring in philip marques. talk with us about what is occurring during the glitz and glamour of what was happening in miami. there were some trash bags, freebies of ftx being handed out. talk to us about what is being built. >> the miami crypto community is trying to move on the miami way. they're trying to leave it behind. in the small spaces, the embassy had an ftx lounge so we

basically had to get rid of ftx related stuff like t-shirts and posters and jerseys. it was sent to the storeroom. we think it is very symbolic of everything left behind. caroline: tell us, we heard from the miami mayor, the focus on building of this community that was meant to be based on crypto and the miami heat stadium is evidence of that. what will the mayor do now? are they still focused on crypto?

is traditional finance coming back to play? >> basically i think it helps explain the mood. a lot of hopes hinge on traditional financing firms taking up the slack to keep the momentum going. ed: do you think there are opportunities, if think about miami heat and mba, what is the community doing to make the city long-term and mainstay for the crypto community and the venture

capitalists that back it? >> i think they are trying to show there is more to the crypto community than just ftx, that they go above and beyond. we saw rallying cries about, come to miami, and now they are trying to separate a bad actor from the technology and keep the technology going. there is difficulty in doing that but i think that is what they are trying to do, make sure miami is still the hub and the talent is here and the community is here and it is larger than ftx. ed: thank you for that.

for me, the crypto community is something we talk about in social media. they are not your institutional legacy wall street names. they are everyday people that go somewhere to party. caroline: they can still party. the bit calm 2023, there are still people who want to build in the space. ed: coming up, robinhood's chief brokerage officer. this is bloomberg. ♪

caroline: welcome back to

bloomberg technology. robinhood is hoping to keep users through retirement. they are offering and ira option with a 1% match. they say it is the first of its time for -- of its kind for brokerage. let's talk with the chief brokerage officer of robinhood. the markets have been falling and it has been tumultuous for users. why introduce this product now? how are we shifting perspective to try to save for the long haul? >> it is so nice to be here, thank you for having me. if you think about it but it is the next evolution of the journey for the 23 million young divers customers robinhood has brought into the marketplace --

diverse customers robinhood has brought into the marketplace. we want to grow with that which means putting something in the offering that helps them and incentivizes them to save on their retirement journey. this is the first and only match for retirement. caroline: your career has been focused on making investing accessible. are you worried where we see -- are you worried that it will put off people who enter the market during covid, they will be put off by looking at long-term perspective? >> i would say the opposite. if you think about it, the customers here are the average age of 32. 50% of them have never had a brokerage account. the importance of starting early to save for retirement, college,

kids, a home, all the things that are critical committee needs to start early and by providing a match, it helps them in that journey because i think they all understand the compounding that happens over time when you begin the journey early. i would say the one other element that makes it a good time to start is here we are with the markets moving up and down. time and historic returns have told us that if you invest long-term, you will be rewarded if you stay the course and we are in scenting people to do that. -- incentivizing people to do that. ed: what has the response been?

is the user base flooding in and saying, i'm in my 20's or 30's, i am going to bake prudent financial decisions. is the user base going to use this in large volumes to start? >> we rolled it out this morning and have a wait list and there are over 320,000 people on the waitlist already. we are starting to roll off 7000 people off the list. the reason i think they find it appealing is because of the changing nature of the workforce. 40% of american workers are in the gig economy and it is growing at a 17% clip. and they are looking for solutions. 77% said they need a solution

tailored to their retirement needs, not those of people with full-time employment. this accomplishes that for them because it is an ongoing match. it matches over the course of their investing journey. ed: we want to get onto the markets but we are still try to make sense of the fallout from ftx. our understanding is spf held a stake in robinhood through an entity that is not yet falling into bankruptcy. can you tell us if any of the bankruptcy lawyers have been in touch with robinhood about that? >> we have not had them in touch with us. think of it as another shareholder. we have a lot of shareholders and they make investments in us.

we are not actively involved in that. they are free to do that. we have not really had many interactions with the bankruptcy attorneys. caroline: you are fully aware of what retail investors are currently using a -- feeling about using robinhood. how are the conversations going? how security people feel in the crypto offerings you have? >> we are regulated and have 19 crypto coin assets. we have done this in a safety first manner and made sure we have -- we are as compliant as possible. so we are the recipient of volumes and deposits as a result but i would also say the fallout is a blemish for the industry as a whole.

it is not a positive thing but we are not intertwined. caroline: has it changed the way in which you unfold products, like now you're focusing on people coming into your platform to save? are you thinking about moving away from crypto or is the product rollout exactly as it has always looked? >> it did not change in a rapid manner. we have worked on retirement offering for over a year. this has been something we are working on for quite some time. regarding what we rollout, it is driven by customers and what interests them. there are still those who are big believers in the crypto space, albeit a different manner. so we will provide them with what they want going forward but

our firm has been doing it as regulatory early compliant -- regulatory compliance as we can. caroline: we are going to move on to key news surrounding a few stories about meta-. ed: monday meta-said they might remove news points -- meta said they might remove news posts from facebook and instagram. backers wanted done before the end of the year. they argue the bill disregards the value the social media platforms provide. shares fell tuesday the most since late october after the

wall street journal reported privacy regulators are ruling the facebook parent should not require users to agree to personalize ads based on activity. meta can appeal the decision but if it is upheld it will make it more difficult to show users targeted ads based on the content they currently view. caroline: a lot involved with them and with crypto. let's delve into it with dave ripley next. how is the space changing? stay with us. this is bloomberg. ♪

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caroline: the u.k. is reportedly financing new rules to regulate guidelines on dealing with the collapse of companies and restrictions on advertising. in the u.s., the ftc is also investigating crypto current -- crypto companies over advertisements. cracking and others were deemed misleading by the advertising authority. let's talk about the future of

regulation. we are pleased to welcome dave ripley. it is wonderful to have you here. so much to talk about in the space. talk about the new regulation unfolding in the u.k. when it comes to advertisements. you have been singled out in the u.k. alongside some other companies regarding misleading ads. >> regarding advertisement in the space, and the way we describe our approach to crypto is being responsible yet ambitious. we are regulated in the u.k.. we have an mtf license there and work closely with the fca and have for quite some time. we think there is a role for regulation in crypto, same as other financial services and we work closely with regulators in

the u.k. on europe. caroline: in a way you have been trying to self regulate, the talk of proof of reserves. also taking to twitter and talking about managing margin risks. how are you looking to change your transparency? >> this is exactly it. we look to be an ambitious yet responsible player in the space. this is truly afor everyone exp. he is nothing but a fraudster, sbf. the approach we take, we look to be transparent with customers

but also invest deeply in security. proof of reserves is a great example. this is a way for us to work with a third party to validate customer liabilities and reserves, assets we hold on behalf of customers to back liabilities and also allows customers a way to go in and ensure their balances were included in the audit going directly to the auditor. so we are really market leaders on this. we have seen a lot of other peers start to follow in our footsteps, particularly following the failures we have recently seen with companies that do not take the same approaches as us. ed: i believe you referenced the word fraudster regarding sbp.

i want to point out that while a number of agencies are looking into ftx and him, he has not yet been charged with any fraud. so we just want to state that. you have been impacted by the volatility associated with that fallout. mass layoffs in november. what has the impact for your business been? >> a number of different things. we have enough information to know that sbf committed fraud. obviously will take time for regulatory bodies and government to come into the fold. he took tens of millions of customer assets and channel them into political campaigns. it could be slowing things down,

we do not know. it moved a lot more quickly when bernie made off -- bernie madoff , when his ponzi scheme came to light. we will see how it plays out but hopefully they will take action before long. regarding us, the crypto industry has definitely slowed down. we saw fantastic growth late last year and early part of this year but it is true that the market has slowed down. we have taken steps to make responsible choices for the industry and bring our expenses in line with revenues and ensure that we are there long-term. our company has been around for over a decade and we intend to be around for many decades to come. ed: dave, i want to point out your -- i want to point out that

that is your opinion, again. about sbf. diamond has called crypto tokens a pet rock. your response? >> an example of someone who does not have a good grounding understanding about technology or innovation. it could also be incentives to say negative things about cryptocurrency. it could be a combination of a lot of things. inevitably when i find someone that negative on cryptocurrency, it is either because of lack of understanding or an incentive that puts them at odds with cryptocurrency. so we do not agree with that. clearly wrong on all fronts

regarding the potential for technology and what it means. caroline: i have to be fair. he said blockchain is real. so he has just kind of often been a cynic of assets in a tradable way. deep cynics of the space, there are other players who have embraced it wholeheartedly, saying many players will be wiped out by this. what number of players will be left standing? >> it's a good point and i do not know the specific numbers but it is clear they will be more contagion from ftx. it is not clear how many will be impacted or who. genesis froze with charles recently. others -- froze withdrawals

recently. the potential for more companies to be impacted by this contagion is accurate. fortunately, we are not impacted by this. we do not carry third-party risk. caroline: there is a lot of blame being thrown around. there is hindsight, of course. maybe the media is to blame. we look at ourselves. we look at vcs and the lack of corporate governance and the money swirling. what is changing? what about corporate governance? >> a number of different things. hopefully this is in fact

something that for customers and individuals, the silver lining is they will ask for questions. let's talk about approach, not promises. that is what we have are proof of reserves and make information transparent to our customers in a detailed way. we hope everyone in the crypto currency space and in financial services generally ask these types of questions. another silver lining of these events is self custody. cryptocurrencies, is the first time ever where there is a way you can securely hold and store your own digital assets. that is one of the fantastic things about cryptocurrency and self currency is on the rise following the events. the blockchain itself is transparent and you can see many

individuals and companies are moving assets. which is fantastic. something we have always supported. so i think there is silver lining. good players like us, hopefully individuals will start asking the questions they should of their third parties and hopefully work to self custody on their own as well. ed: you are in the ceo seat now, right? >> still in transition. we are working on recruiting a coo to back my role. ed: if you can summarize your goal for next year when you take charge, what is it? >> 2023, a couple of different

things for us. to make sure we have a commitment to fundamentals. looking out for customers on all fronts is number one. it is a difficult bear market but we know there will be a time when cryptocurrency and bitcoin sees significant adoption and we will build for that time because we know success will come. ed: incoming ceo dave ripley, thank you. coming up, air tags were meant to track longings but people are using it to track other people. this is bloomberg. ♪

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caroline: apple is being sued by women who say that air tags are making it easy for stockers to monitor the items. privacy advocates and police reports are verifying air tags can be used to track people without consent. an ex-boyfriend of one woman planted an air attack in the wheel well of her car and found out where she moved to to avoid harassment. another was being harassed after an air tag was put in a child's backpack. you can see more on social media for that. this is bloomberg. ♪

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