caroline: i'm caroline hyde in new york. head: i'm ed ludlow in san francisco. this is bloomberg technology. carolyn 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: robinhood through retirement. why the investment app 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%. risk off. the nasdaq off by two percentage points. we are looking at the banking sector, under pressure.

maybe some nervousness was signaled by morgan stanley's 2000 person layoff and the slowing of hiring at bank of america. the warnings coming from the goldman sachs ceo. 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. i don't just want to shine a light on stocks. equity indices in europe and north america and asia all under pressure. foreign exchange the story of dollar strength. dollar index up 3/10 of a percent. sovereign bonds are the haven of choice. yields lower across the board. seeing money pulling back in that particular space as we see a global slowdown. ed: a lot of red on our screens. i was looking on twitter to see what people were talking about.

less about fed and inflation. more about warning signals from bank ceos. big tech was caught up in that. apple and microsoft dragging. a big part of that of course a report on apple we will come into later in the show. meta down. the eu is voting in favor of rules that would impact their targeted ad based platform. not good news for that company. the bright spot continues to be shares of china tech. jd.com up 2%. part of that is the change of any policy around testing. there was initiation. batista with a hole that seems to favor the stock. the other big story is chips. we are looking at what is happening in the arizona desert. the vip list gathered there to witness the unveiling of tsmc's planned for the future. i did not help stocks at all.

all of the names present at the event involved are some of the biggest this -- biggest percentage of decliners. generally speaking, pretty optimistic about what this means for the sector and domestic manufacturing going forward. caroline: what is the cost? how much does it end up being an economic benefits of the u.s. in general? we heard from president biden and apple's leader tim cook. they were at the new plant you speak of in arizona and we expect the company to be announcing $40 billion in terms of u.s.-based investment and it plans to build the second facility. here is what tim crook told the crowd. >> we work to manufacture chips that help power our products of -- products all over the world. we look forward to expanding this work in the years to come

as tsmc forms new and deeper roots in america. when you stop and think about it, it is extraordinary what chip technology can achieve. and now, thanks to the hard work of so many people, these chips can be proudly stamped made in in america. caroline: a big pr event. ian, i want your take. from a global perspective this is small for tsmc. how big a deal is this for the u.s. and supply chains? >> it depends on how you slice it. if you slice it in the terms you gave, it is not that big at all. it is a modest-sized plan for tsmc. even if it grows to full

potential, it's less than 10% of tsmc's overall production. therefore it is a start and that is probably the best way to describe it in terms of distributing the supply chain and bring it back to the u.s. caroline: a start that takes years to build and produce. talk to us a little bit about what you think the overall supply chain looks like in the u.s., how much we start to see this expand. it is tsmc going to be joined by others? how much will we see a reduction in dependence on taiwan and china? >> there is a huge set of pushes and pulls. what is going on in arizona is the latest example. arguably the most poignant example. tim cook is really good at supply chain management and understands the process.

he understands how the electronics world works. they want to greater diversity in their supply chain but that is not necessarily what tsmc wants. they want more efficiency. the way to have plants be more efficient is to have them in the same place. there are a lot of pushes and pulls. then you have geopolitics on top of that. 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 doing four nanometer. 2026 doing three nanometer and what that means any greater 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. the government of taiwan want the island to retain its status as the premier location for semi-productive -- semi conductor production in the world. ed: thank you. let's stick with it. we are joined by jennifer. they use software to help companies manage supply chains and business relationships globally. you have 25 years of experience in global supply chains assessing risk in the economy. you heard what caroline and i

were discussing. is this a significant step forward to ensure -- to ensure domestic production? >> it is a great first step forward and solves two areas around the supply chain. one is around manufacturing and logistics, where you see the establishment of plants and country. the second is labor. you will have a lot of jobs that come out of this. a lot of reskilling of labor. ed: biden is in arizona. he has been speaking in the last hour. let's take a listen to what he had to say. >> as we see in phoenix, the united states is a top destination for companies across the globe looking to make investments because we have a world-class highly skilled committed workforce. union labor. ed: world-class. skilled workforce. is this a game changer for the

united states role in global semi conductor manufacturing from the perspective? >> i think we were a big manufacturing entity during the world war one and world war ii and at left. 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. i can tell you the ceos we work with that are focused on transparency of the extended supply chain are not just concerned about finished goods manufacturing, but where raw materials are coming from. those are some of the geopolitical concerns ian king was talking about. caroline: and geopolitics abound. china, u.s., we also think of europe and implications of russia and ukraine. you do some great studies. you use artificial intelligence within your reports. i'm looking at your 2022 resilience report.

talk to us how the u.s. is faring right now with its own resiliency when it comes to global supply chains vis-a-vis the u.k., ireland, europe. >> globally over the last three years we figured out that the supply chains are fragile, brittle, and just in time. you hear about that a lot. whether it be the u.s., u.k. trying to unhook from china, ukraine, russia we'll need to understand what countries and suppliers are tied to and reliant on and can we near shore or reshore? right now in the u.s. we are feeling shocks almost once a quarter to the tune of $182 million every time. his nieces cannot remain profitable when that keeps happening. caroline: what we want to bring our audience is where is the investment opportunity? it seems to me there is quite a

big one. whether the u.s. sees it as it invested it in subsidies, but for you what are you seeing in terms of the ceos you talk to and investing in their own supply chains? the technology that might be able to 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 support the throughput i need to create 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 preempted that to keep operating. and the fourth in the one we are seeing our customers pull us into an ceos every time i have a conversation are asking how do i

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

ed: bloomberg has learned apple plans to release a hundred thousand dollar car a little later than expected. the iphone maker has scaled back plans and postpone the target

launch date to 2026. mark broke the story and joins us now. what are the key details you have reported? >> the biggest new detail is that apple has scaled back from a level five to a level four car. the original approach they had been working on for years is a fully autonomous car with no steering wheel, no pedals, essentially downgrading or upgrading the driver to a passenger. someone who could relax in the car while it is driving. you will have full autonomous, full self-driving functionality but only in certain areas. the idea of this apple car operating on city streets, complex roads or in inclement weather, that is not going to happen at least in the near term after the launch but maybe eventually as they expand it or the other detail is the delay you mention.

they had been most recently targeting a launch in 2025. now it is 2026. carolyn: talk to us as to why. you can imagine what a herculean task this is. the injection of the efficiency and r&d that must be needed. why the delay here? >> the delay is they have a fundamental shift going on with the project. a lot of the interior, underlying mechanics, a lot of redesigning and architecting needs to go on to go on. in terms of what is taking apple so long as they still need a partner. they need a parler -- a partner to develop what is called in the industry the skate or. that is the parts that connect to the steering wheel, underlying electronics, parts of the drivetrain and the battery.

drivetrains are important to this. they need to do that. let's talk about the self-driving technology. level five autonomous driving is a dream and i don't think and clearly apple agrees that is something that is going to be realized anytime in the near-term. i think it is going to be 20, 30 years where you get full level five where you can plug in where you are going and know you are going to get there safely with no issue. ed: that is certainly a trend we are seeing. you have been a busy man. the other big story from apple is about the app store. they have overhauled pricing. what is the news? collects apple is trying to make the app store a bit more interesting to developers. they do these incremental pushes to show developers why the 30% or 15% fee is worthwhile they want to show developers why the app store will remain the best story for developers. today the app store is the only way to get apps but there are

potential reasons and their is some site to say there may be alternatives whether that is sideloading, different rules created by governments, upcoming regulations in europe. they have to keep improving the app store to make it more interesting to developers. in terms of the news, they are expanding pricing. they went from $.49 to a thousand dollars. now $.29 to $10,000. those tears above a thousand have to get approval from apple before you can price an app for subscription. they don't someone creating a video player for 10 grand. you're going to have easier ways to convert taxes and currency fluctuations will be easier to handle. carolyn: scoop after scoop. we thank you for making the time. mark gurman as always. carp -- coming up, the crypto capital in miami is filled with

unwelcome reminders of the ftx empire but some true believers still have faith in the digital currency. we will discuss that next. this is bloomberg. ♪ ♪ ♪ well would you look at that? ♪ ♪ jerry, you've got to see this. seen it. trust me, after 15 walks it gets a little old. i really should be retired by now. wish i'd invested when i had the chance... to the moon!

[golf ball bounces off rover] unbelievable. ugh. [ding]

>> i think for us crypto wise the slingshot in the david and goliath story if we are a -- competing with someone bigger and stronger, we have to be smarter so that was our hack on how we were going to become prominent in an increasingly technological world and ecosystem. carolyn: a couple of months ago, the miami mayor on the city's push into crypto. what was supposed to be the hotspot for digital assets is the site of trash bags full of ftx freebies. it is an amazing story doing brilliantly on bloomberg today.

we want to bring in the miami bureau chief of bloomberg. talk to us about what is occurring. during the glitz, glamour of what was happening all over miami, there were some trash bags. there were some freebies of ftx quietly being handed out. talk to us about what is being built that was meant to be a celebration and is instead sort of a pivot. >> what i tell you is the miami crypto community is trying to move on the miami way. it is trying to get the party going as fast as it can after ftx. trying to leave that behind. the salonis symbolic of what happened. it had the first ever ftx lounge so when it happened they had to

get rid of a lot of ftx related stuff. we had hundreds of t-shirts. they had posters for any event. they had miami heat jerseys. all of that was hurried into the storeroom in the back that i and another reporter were happy enough to stumble upon and report on which we think it was symbolic of the way they are trying to leave everything about that hind. carolyn: it is in the wynwood area which is an awesome area of miami. we heard from the miami mayor previously. the focus, the building of this community that was meant to be based on crypto and in many ways the miami heat stadium is evidence of that. ftx abound with its money poured into the space and now perhaps they are desperately trying to take that off the stadium. i'm interested in what the mayor does now. are they all still focused on crypto? is traditional finance coming

back to play? >> basically i think the mayor has made a joke it helps explain a little bit of the mood. he jokingly said citadel which i guess a lot of the hopes hinge on a lot of firms will be able to take up a little of the slack crypto brought in and keep them movement south going on. ed: there are some opportunities is one way to look at it. if you think nba, the miami heat. some of the partiers, for them it is over. what is the community doing to make the city, the broader area long-term a mainstay for the crypto community and i guess the venture capitalists that back yet? >> i say part of the party, it

is very a miami answer. they are trying to show there is more to the crypto community than just ftx and sam bankman-fried. there are artists with the nft crowd. go way above and beyond what ftx represented. the last week what we saw were several rallying cries in the way of come to miami. the community is here. i think they are trying to separate what they call a bad actor from the technology. kind of keep the technology going. there is a lot of difficulty in doing that. i think that is what they are trying to do in the city. trying to make sure miami is still the hub and the talent is here and the community is here and is way larger than sam bankman-fried and ftx.

ed: for me, the crypto community is something we go to social media to talk about. it reminds me a lot about the meme stock movement before it. these are not your institutional legacy wall street names. they are everyday people flooding somewhere else to as he said party. carolyn: they can party still. the bitcoin 2023 conference apparently is inviting to celebrate bitcoin winter in miami. partying aside, there are still people who want to build in this space. ed: i will put on the calendar. robinhood's chief brokerage officer. a lot to discuss. this is bloomberg. ♪

caroline: welcome back to bloomberg technology.

new york. let's talk about robinhood for a moment. it is hoping to keep users through retirement. the app popular with young traders is offering 22 million users and ira 1% match. they say that a -- that it is the first 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 now introduced this sort of a product? how are we shifting our 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 is the next evolution of the journey for the 23 million young divers customers robinhood has brought into the marketplace. they are at a point now where

they want us to grow with them and growing with them means putting forth in the offering summit it helps them. that is the launch of robinhood retirement which as you said, the first and only match for retirement. carolyn: your entire career you have been focusing on making investing accessible. are you worried at this moment where we see full's in the market led by technology stocks that that puts off people who entered the market in 2020 and as they stayed home during covid they will be put off from looking at the longer perspective? >> i would say the opposite. if you think about it, the customers here are an average age of 32 years old. 50% of them have never had a brokerage account before. importance of starting early to save for retirement, college,

kids, a home, all the things that are critical needs to start early and by incentivizing them and providing a match, it helps them in that journey because i think they'll understand the compounding that happens over time when you begin that journey early. i would say the one other element that makes it a really good time to start is here we sit with the markets as you said moving up and down. time has been an historic returns have told us if you invest for the long-term it over the course of the last 50 years you will be rewarded if you just lay the course we are incentivizing people to do that. : i know you only announce this early tuesday morning but what has the response in? thinking about what caroline asked you.

is the user base of robinhood flooding in and saying i'm in my mid 20's to 30's, i'm going to make prudent financial decisions? is there a user base going to be using this in large volume to start with? >> as you pointed out we rolled out this morning. we have a waitlist and there are over 320,000 people on the waitlist already. we are rolling people off the waitlist and they're starting to open those accounts. we have rolled 7000 people off the waitlist. i think the reason they are finding it such an appealing offering in their retirement space is because of the changing nature of the workforce. what i mean by that is 40% of the workers in america are in the gig economy and that is growing at a 17% clip. of those they are looking for solutions. 77% said we need a solution that

is trailer -- that is tailored to our retirement needs. not to ones of people who have full-time employment or he may working part-time. this accomplishes that for them because it is an ongoing match. it is not a one-time match. matches over the course of their investment journey. ed: we want to get on said the markets but we are trying to make sense of the fallout from ftx and sam bankman-fried should our understanding is spf held a state -- a stake in robinhood through an entity that has not yet fallen into bankruptcy. are you able to tell us if any of the bankruptcy team or lawyers have been in touch with robinhood about that? >> we have not have them in touch with us. pink of it as another shareholder. we have a lot of shareholders. they make investments in us. we don't really -- we are not

actively involved in that. they are free to do that as they will. we have not had any -- many interactions with the bankruptcy attorneys. carolyn: you are the point person for broker-dealers. you are also i'm sure fully aware about what the retail investor's feeling about using robinhood. how are those conversations going? how security people feel particularly in the crypto offerings that you have? >> we are regulated. we have been a regulated entity. we have 19 crypto coin assets. we do not have hundreds of crypto coin assets. you have done this in safety first manner and made sure we have been as compliant as can be. we are a net recipient of volumes and deposits as a result of that but i would also say the fallout is a blemish for the industry as a whole. we do not view it as a positive

thing. we are definitely not intertwined and have no connectivity to either ftx or the counterparties. carolyn: has it changed the way in which you are unfolding products? lake the way you are focusing on people coming to your platform to save? are you thinking about moving away from crypto related offerings or is the product rollout exactly as it would have always loved? >> it is not -- the focus did not change in rapid manner. we have been working on the retirement offering for over a year. this has been a focus and something we have been working on for some time. with respect to what we rolled out, it is driven by our customers and what they are interested in. there are still people who are big believers in the crypto space albeit in a different manner. we are going to provide them with what they want going forward but as i said, we have

not been a firm that -- we have been doing it as regulatory really compliant as we can. carol call cache -- carolyn: stay well. we are going to move on to some key news surrounding a few stories of meta today. dead: on monday, they said they might remove news posts from facebook and instagram. that is if congress passes a new bill that will empower smaller news outlets to negotiate compensation from tech companies. the bill in question is the journalism competition and preservation act. backers want it done before the end of this year. mehta argues the bill -- meanwhile of course meta-shares also falling six point 8%

tuesday. that after a report by the wall street journal that privacy regulators at the european union are willing a facebook parent should not require users to agree to personalized ads based on online activity. mehta can appeal the decision but if it is upheld a can make it a lot more if occult fred based platforms to show users targeted ads based on what they are clicking on. the types of content they are currently viewing. caroline: a lot involved with them and a lot revolving crypto. we have been talking about it with robinhood. let's delve into it with the crack and ceo next. talking of regulation and proof of reserves. how is this face changing? this is bloomberg. ♪

shery: let's talk about the u.k. for a moment. it is reportedly finalizing new rules to regulate the cryptocurrency sector. that includes guidelines on dealing with the collapse of companies and restrictions on product advertising. in the u.s. the ftc is following suit, also investigating crypto firms over possible misconduct through advertisements. in march the u.k. regulators send warnings to more than 50 companies over misleading crypto advertisements. that is after cracking and quinn based ads were deemed -- misleading. we want to talk about the future of restructuring. so much more.

pleased to welcome to the show k raken ceo dave ripley. first and foremost talk about the new regulation being unfolded in the u.k. tickly when it comes to adverts and you of course have had some concerns there. you have been think about along side coinbase and other companies. how have ways changed at the moment? >> with regard to advertisement in the space in a way we describe our approach to all things crypto is responsible and ambitious. we are regulated in the u.k.. we have an mtf license. we work closely with the fca. we have for quite some time. we think there is a role for regulation no doubt the same as other financial services. we work closely with regulators on all fronts.

shery: in a way you have been trying to self regulate the talk of proof of reserves. you have been talking to twitter and so has jesse. talking about at length the managing of margin risk for example. following ftx's fallout. how are you looking to change your transparency at least even if it is not the way in which you are doing business right now? collects this is exactly it. we look to be an ambitious responsible player in the space. ftx, this is truly a travesty for customers and everyone that was exposed to ftx and sam bankman-fried. he is nothing but a fraudster. we frankly have no place for these types of people in the cryptocurrency space. the approach we take, absolutely. we look to be transparent with our customers but also invest

deeply in security as well. proof of reserves is a great example. we conducted this proof of reserves dating back some time. we conducted two this year. it is a way for us to work face third -- a third-party auditor and liabilities, and reserves, assets we hold on behalf of customers to back liabilities and allows customers a way to ensure their own balances were included in the audit by going directly to the auditor. we are market leaders on this approach and frankly we have seen a lot of other peers start to follow on -- follow in our footsteps. particularly following the failures we have seen recently with companies that do not take the same approaches. ed: i believe you referenced the word fraudster with regards to

spf. i want to point out that while a number of agencies are looking into ftx and spf he has not been charged with any sort of fraud so we just want to state that. you have been impacted by the volatility and fallout associated with ftx. you announced layoffs i believe at the end of november. what has the impact to your business been? collects a number of different things. again on sam bankman-fried, i think we have enough information to know that fraud was committed there. obviously it is going to take time for regulatory bodies and government to come into the fall. frankly maybe it is taking some more time given he took tens of millions of customer assets and channel them to political campaigns. that could be something that is slowing things down. we do not know. it certainly moved a lot more

quickly for example when the fraudster that was earning made off, when all of the ponzi schemes came to light. we will see how this plays out. hopefully they will take action before long. with regard to kraken the crypto industry has definitely slowed down. we saw a growth in the later part of last year and the earlier part of this year. it is true the market has definitely slowed down. we have taken steps to -- make the responsible choices for the industry and bring our expenses in line with revenues and ensure we are there for the long-term. the 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 -- i want to point out that that is your opinion, again. about sbf.

another big voice in your world. jamie dimon has called crypto tokens a pet rock. what is your response to that? >> it is an example of someone who does not have a good grounding and understanding of technology and probably not a good understanding of innovation either. it could also be incentives to say negative things about cryptocurrency as well. it could be a combination of a lot of these different things. inevitably when i find someone who is that negative on cryptocurrency it is either due to the lack of understanding and information or frankly an incentive that puts them at odds with cryptocurrency. we of course do not agree with that. he is clearly wrong on all fronts with regard to the

potential for the technology and what it actually means. carolyn: to be fair he said decentralized finance and blockchain are real and so are new technologies. he likes the underlying technology. he is sort of a cynic of the assets in the tradable way. i'm interested -- people who are deep cenex like larry fink but actually players who have embraced it wholeheartedly, mike nova grants for example saying many players are going to be wiped out this. do you agree with that? what sort of players are left standing here? >> it is a good point and i don't know the specific numbers but it is clear there will be more contagion from ftx. it is not entirely clear how many or who is going to be impacted. we of course know genesis froze withdrawals recently. glock fight cited impact directly from ftx and is moving

forward. they have already shut down withdrawals. the potential for more companies to be impacted by this contagion, this circular leverage out there significant. fortunately we are not one of them. we are not impacted by this contagion and don't carry counterparty risk to any of these other crypto companies. carolyn: dave, there is a lot of blame being thrown around. there is the joy of hindsight of course and people feeling largely it is one bad player here. maybe the media is in some way to blame. we look internally at ourselves. we look at the blame of vc's. what from your perspective is changing in that respect? what do you think the money, the deep pockets are asking themselves and what about companies such as your selves are being asked of? >> a number of different things. hopefully this is in fact something that for investors,

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

individuals, companies are moving their assets to their own self custody wishes fantastic something we have always been a supporter for. there is some silver lining here. hopefully the good players, individuals will start to ask the questions they should be asking of their third parties and potentially look to self custody on their own as well. ed i am right in saying you are in the coc, right? >> we are still in transition. we are working on recruiting a chief operating officer to backfill my role. we look to be fully done with transition in the early part of this coming year. ed: if you can summarize your goal for 2023 when you take charge, what is it? >> for 2023i think there are a couple different things.

one is to make sure we have a commitment to our fundamentals. security, customer service, partnering with regulators. looking out for our customers on all fronts. that is the foundational piece. two is yes, it is a difficult bear market but we know that there will be a time again when cryptocurrency and bitcoin sees significant adoption and we will build for that because we know the success will come. ed: kraken's 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. ♪

carolyn: time for going viral. concerns around trackers like air tags. apple has been sued by two women who say that air tags make it easy for stalkers to monitor victims. air tags are meant for tracking personal possessions. privacy advocates have warned and police reports i've -- have verified air tax can be used to track people without consent. according to a lawsuit an , ex-boyfriend of one woman planted in air tag 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. apple tagged the air tags as stoker proof. seymour on social media for that. this is bloomberg. ♪

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