chris i am caroline hyde. i am in bloomberg's world headquarters in new york.

>> this is bloomberg technology. price sam bankman-fried response to charges and a detailed post saying that he did not steal funds. nor stash billions away. >> disney leadership continues with activist investor nelson peltz nominating himself to the company board. what could this mean for them? first we talk with a venture capital fund backed by melinda french gets but her fund is on the dedicated to investments and longevity, the spending power and influence in women in diverse community's. first, let us check in on these markets. once again, friends, it was the day of macro affecting your benchmarks. let's take a look at the inflation data, actually showing a drop in overall prices in the month of december versus the month of november. overall we are still seeing that cpi showing inflation is cooling, maybe it even peaked. the nasdaq is up 6%. similar moves to the nasdaq.

five straight days, the longest winning streak we have seen since july of 2022. yields, bonds, we see yields come down by 12 basis points on the five-year but across the curb, we see the -- we think the federal reserve will start slow the pace of hiking. we are certainly hearing from a litany of the members talking about just a quarter of a percentage point as the new norm. i wanted to look at that for what happens to the u.s. dollar. the u.s. dollar has been on the weakening trajectory. it was down versus basically every g10 currencies. look at the procurement see rankings on the bloomberg, choosing the japanese yen on the day. the aussie crone, the row, the dell are all doing well. >> breaking news happening after market, apple saying in a regulatory filing that tim cook's salary for 2023, his compensation will be reduced 40% to a more modest 49 million

dollars. they are saying that tim cook had some influence and going forward they will reevaluate his pay relative to peers, bringing it more in line with the 80th and 90th percentile. still a lot of money. an interesting development. there is sort of a modest move down. we got the be actually expected when inflation came in in line with expectation. it was one of the primary movers. for 10 straight days of gains, the longest streak on record, no real catalyst or news in the new cycle. interesting to see that performance start that year from ford as it shifts. disney, we will get into more. this is not clear if this is part of the broader market or investors are cheering the activism we are seeing. tsmc really interesting. u.s. listed shares up 84% this

thursday. the company cutting its capex in response to slowing demand, particularly consumer electronics. this is slightly below street expectations but they are saying they are seeing an improvement in supply, particularly for automotive. bitcoin, interesting we continue to see strength in bitcoin. there is still this really high correlation between bitcoin and technology stocks. these are nasdaq futures. it is really interesting to look at this correlation as we go forward. the narratives move to 20 basis point hikes. that has the tech boys coming out. request let's look at what might be more bearish term of the in crypto. we have breaking news that the sec is crewing -- so in the crypto brokerages. this is for offering unregistered securities through their joint earned product as it

is called. this is all a product to do with cameron winklevoss and the attack he is making on barry, they have been fighting back and forth about who is to blame for what has been the father ever since the program has been a problem following the caps and crypto more broadly. basically you cannot be using these sorts of products that are customers loan out there products in exchange for interest payments. they are saying this is unregistered securities. the sec once again weighing in on crypto. >> in a big way. you have the complaint here calling is a question genesis and gemini in the same complaint. why is that interesting? to the point you're are making here, we have these counterparties that have deviously been feuding over how the situation has been handled since holding withdrawals. what does the complaint say? they are looking at the

unregistered sales to u.s. security and retail investors. you have the sec talking about the marketing from both parties. i want to be very specific. this is genesis global capital, the subsidiary of that large trading desk here. that is part of the defendants being named in this complaint. both of them marketing these assets to investors, being called into question by the sec. this comes just days after that big open letter you saw from cameron winklevoss after a number of correspondences between dcg, digital currency group as well as the winklevoss twins for this gemini earned product. it is days after you have cameron winklevoss alleging accounting fraud and also in the same week that you have the head of digital currency group also reaching out to investors with a very large multipage question and answer.

it addresses how digital currency group uses the proceeds of loans borrowed from genesis capital. the same as that here in question under the sec review. there will be a lot of questions but from investors as well as regulators on where the money went, what kind of money was lost, how you get it back but at the end of the day, as i said before, these two are being named to the complaint together after days and days, months sparring. how they handle this when they are both listed together as under the complaint of the securities and exchange commission. course an interesting development because bloomberg reported last week that federal prosecutors were looking into barry silva and the digital currency group. now we have this triangle. complaint is joint between them. what is the relationship as it

stands now between the twins? >> as it stands, they have both been kind of ed were here. what is worth pointing out is the difference between how genesis frames this issue versus the winklevoss twins. we reported in late november that when genesis was out looking for money, we reportedly reached out to a number of big investors to really stave off some of these issues. as they did that, they revealed all these loans that existed between genesis as well as other digital currency group experts. those entities, investors of digital currency group did have clarity into how the entity works. the big reveal here becomes regulators asking questions about where the money went at the end of the day but also the allegations being made by gemini and gemini's earned products on behalf of those 300,000 customers. you look at digital currency

groups responding publicly, they said this was a way for gemini to be deflecting blame. the way it is culminating now, they are both under this complaint for the sec. >> let's weave all of this narrative together. a lot of the reasons the funds have been trapped in genesis is because of the ongoing fallout across crypto that in many parts was not just started by the collapse of ftx, it came much prior to that. some of them related to lending products themselves. talk to us about what we heard from sam bankman-fried about the ftx fallout and how all of this is one big similar collapse that is just having so much of a contagion effect. >> it is interesting. we heard st. nick -- sam bankman-fried before the indictment came out but since he has been on house arrest, we have seen him tweet here and there. now we have a sub start coming out as well. in which he is detailing his defense here on this idea that

he did not steal funds, he did not stash them anywhere. the name of this sub stack was ftx premortem overview. in he also links the issue to how he was treated by rivals. he has been competing about binance and the handling of assets for a while here. what happened in the middle of last year, people lost a lot of money and it spiral from there. it is kind of simple as that. request in an industry under duress, executives under the spotlight, speaking of executives, let's talk about disney were activists have been nominated to the board. this could become a highly public debate over disney's returning cl, bob iger and his leadership. bloomberg's managing editor with us in new york. i guess the question you go straight to is what is nelson peltz trying to get out of this? >> he is trying to get the things out of it that he always

-- he always is. we can squeeze cost savings. we can run this business more efficiently. he argues that they have been overpaying for assets for a while. especially the fox deal. he criticizes them for having gone after sky which they did not win. he says it is time to check things out and have a little bit more focus on operating margins and restore the dividend. he is calling for the dividend to be restored by 2025. that went away early in the pandemic. >> none of these challenges and concerns must be that much of a shock to disney. they know they have had some issues. they just announced changes at the board level. ultimately, they are not going to want him on the board. >> they very much not. i think he would like to have a chance to run the show himself without input from nelson. they are acknowledging there are some public facing changes they need to make.

one interesting little piece is that he was supposed to unveil his big campaign this week and disney actually got out ahead of it with the announcement of the changing export. they already had the age limit. the 10 year limit to be on the board. the coincidence is there if you want to read into it. they also did announce they are establishing a succession committee at the board level. that is a signal to investors that we know we need to set our course on the future and decide who will eventually replace bob iger in a couple of years. that is very much the first volley in what is likely to be a month-long fight. >> this is one of the stories where you need some context of recent history where bob iger has returned as to yeah, having retired. we asked of the audience if he has a point here. these were the results from the twitter ball we did. not entirely surprised by this. 61% of respondents asking who is

peltz? he is a classic activist. he built up that steak in november. does he have any track record of achieving these things? >> absolutely. you can argue he already has with these moves. you look at examples like procter & gamble, general electric, the executives of those countries were very much taking it. there was a company dupont that he had them out. >> thank you so much. meanwhile, coming up, we have a little bit of a sprinkling of vc action. we are talking about his book with the new report on the state of venture capital in 2022. spoiler alert, it is not too pretty. this is bloomberg.

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>> we raised to bad in a contest where the business was growing incredibly well. the market is more difficult. i think there is much greater scrutiny of arrow financial performance. underlying, the numbers spoke for themselves. i think we have to get some context. this is the talking point. beyond silicon valley.

the lead vc analyst joins us from san francisco. 2022 in summary was a transition year. it was difficult, it was hard, there was a pullback in funding overall. what is the conclusion you guys reached when you look back over the year? >> i think this is a really good way to describe what we saw in 2022. transition year. this all faded pretty quickly. we saw the deal can dropped 25%. when you look at where that is coming from, a lot of it is coming from the unicorns, the growth stages of venture.

when you see the investors pull out -- they came out pretty quick. >> what is really interesting, carolyn and i have been discussing this every single day, how it wasn't completely doom and gloom and it may not be completely doom and gloom. you take a long-term view. is that a fair assessment? >> they do have an immediate insulation from the broader economy.

we do believe there is some deflation to come out of this market after the exuberance of 2021. the longer the macro volatility persists, we expect to see that crush that the late stages see right now. >> go global for us if you can. what is most interesting is the outperformance of late. i am interested in what comes in over the lower base. this is the actual start of culture there at the moment. are we likely to still see the money in silicon valley, new york where will it spread out a little bit more? >> i think we have seen the spread of happen over the last few years. we track the data located in the headquarters of the fund, we had $77 billion raised in silicon

valley this year. a lot of those huge mega funds received being raised are into looking valley. this is the change toward zoom and the more -- one more toward the global market. they actually saw less than 20% of deals in the u.s. for the second quarter in a row. that is the first time that has happened in our dataset. even though the capital is staying here, there is a much more global venture economy. would that be moving the capital to the midwest? we have seen a lot of growth everywhere. >> can you break it down by industry? what was able to weather some of the concerns? are we able to break it out as much as cybersecurity?

are they pretty resilient in a recessionary environment? >> i am not sure any sector really weathered the storm in 2020. every sector is right for some kind of pullback because of the exuberance. when we look for the sector perspective, the first place we looked is the public markets. clout has stated a little bit better. >> there are two data points i want to hit with you very clear. even though there were not necessarily the deals in 20, venture capitals -- venture capitalists all around the world lost a few funds. daily scott there were tests set up if they did not then deploy them right. the other dataset that really catches my eye is that about investing in female founded companies.

>> female founded companies have been a point of interest for much of the industry for the past few years. a lot of funds have been raised by female gps. there has been a lot of help from the industry to make sure there is more capital going to the company. one data point that gets tossed about is the percentage raised by the total deal value. the unfortunate part of that is it is really low. a lot of that is influenced by the huge deals we have seen over the past few years. it hundred 57 $109 deals closed. -- a lot of those have been started by men. there has been a push toward more female led companies. we are hoping that because of the fundraising that has been done by female gps as well as initiatives of the broader industry that we will see a sustained growth and investment

into female founded companies. >> we have another one coming on later in the show. just briefly from the diversity perspective, many have been worrying that it is a recent trend and therefore, women go back to the previous old norms. are you hearing that 2023, people are still going to be ensuring they are backing divers founders and diversity of thought? >> in a similar way, we thought the exact same thing would happen to the small ecosystems that popped up in the midwest. it had not received a lot of capital from the east coast where the bay area. when we did see was a sustained growth in the smaller market. we thought whether it be female founded companies or a more diverse founded group, we believe there has been a sustained momentum behind that. we believe 2023 should be a big

year because of the number of funds raised to focus on these initiatives. >> thank you for reminiscing on 2022 and pushing us forward. vc analyst over at pittsburgh. what did wall street have to say about tech stocks? this is bloomberg. ♪

>> time to talk tech. jeffries upgrading to buy from them. the upside surprises to the four operating margin. they believe it should be good for netflix but electronic arts has some tour stocks despite short-term pressure point. best buy downgraded. the new price target $74 and

playing a 14% decrease from the last price. other analysts weighing in on the stock lifting their target price to $83. finally, security software downgraded at morgan stanley. slow growth for security landscape. lowering the price target. a little bit of a positive spin on the secular tailwinds there. >> a fascinating trip to keep an eye on. we will stick on the public equity side of things. we are talking tesla with a key investor. all about demand growth concerns. this is bloomberg.

>> welcome back to bloomberg technology. let's go to san francisco. some key players are, there is a new fund in play in sf.

cake ventures. it will invest in minority founders. changing demographics across america. backers include bank of america, melinda french gates. congratulations and talk to us about the layers. i liked the description. you are called cake ventures. the layers you will be targeting. >> exactly, thank you for having me. cake ventures is focused on big technological changes combined with all of this. we back and invest capital into companies that touch areas of demographic change including aging and longevity, increased spending power with women and the rise of the new majority. >> talk to us about the rise of a new majority. i think that is a fascinating shift.

just talking about tech adapters, talking about minority led errors. -- heroes that are building something culturally as well as financially. >> corrected. asians black and latinos have an increasing influence on internet culture, increasing their spending power and i think this is an area that we want to invest in and invest in quiet early. >> congratulations as caroline said. it is really interesting to speak in the world of venture capital. we have been talking about how difficult it has been to raise money for those startups in this department. who are your lps? where did the money come from? how hard was it for you to get this vehicle finalized? >> we have great lps like pivotal ventures and melinda french gates company.

and regroup, funds like that. we are in a very challenging time for entrepreneurs and emerging fund managers. i won't deny that. there has never been a better time to be building something game changing technology. the capital is out there but it is a difficult time and continue to be a difficult time over the next several months to a year for people starting new companies. >> i am reading that you guys are going to get $5,000 checks, that kind of income. how will you do business? legal out there and have one on ones with these founders? i just want to know how it works. >> i have already invested in 12 companies. i have this portfolio, i am a

longtime venture capitalist. i was a scout at light speed. i have a great deep network of people who know me, know my investing thesis and track record and who i can work with and collaborate with in order to do great deals. i also go out and hunt for deals. one of my favorite things to do is finding new, undiscovered founders, building something that fits into the three layers of the cake. that is really exciting to me. >> where are these founders based? more often than not? >> i am based in san francisco but 66% of the companies i have invested in so far have been outside of silicon valley, san francisco bay area. that is something that we will continue to press on. i think great innovation comes from many different places. we are excited to invest in places that are as outside as

silicon valley as well as countries -- companies that originate right here. >> thinking about the way you're looking at demographic changes, longevity and the like, what are the problems they are trying to fix? >> one of my companies is called guaranteed and they are using technology to change and of hospice care. that fits into the aging and longevity layer of the cake. we are super excited to back the company. i have also invested in a company called pamper which is focusing on nails and nail art. that is the woman layer of the cake and we are excited to continue filling out the labors of -- the layers of the cake with not only consumer products but also the business and enterprise space. >> one of the things i am always fascinated by when we have vc's

on, i guess it is not as simple as you handing over the money. when you launch a fun, my question to you is what other help do you offer these founders? what is your pitch to them on why they should partner with you? why should they take your check over somebody else's? >> i don't gates on the white space over demographic change. demographic change is what is going to impact every single company started today, whether it is strictly focused on aging or whether it is a more generalized company. one of the things that founders and entrepreneurs look to me and cake for his helping them understand and define which demographic changes are going to be the most impactful to their companies and how to take advantage of those in a way that is both authentic and helps accelerate their growth. >> we were just talking about the economic environment we now find ourselves in.

dire straits for vc's but exciting times to see that so many have thought the challenge is being let go at the moment. that means people are going to build right now. do you abide by that thesis? do you think now is the time you're looking for the companies that have already been built? >> definitely. layoffs are really challenging for anyone. no one wants to hear about big companies laying off a large amount of their staff. just like during the great financial crisis, a lot of those people ended up starting companies that are -- that have been category defining companies like airbnb and uber. i think that because we are in a recession and we are in a challenging economic time, a lot of people will start to start new companies of their own and these could be the next big

companies that experience amazing growth. >> we are so grateful to have you day one of the vehicle launch. best of luck to you. what is happening? there are clearly themes playing out in front of our eyes. every day we are discussing the same thing on the show which is there might be a pullback in investment to the vc world. not in early precede stage. we are seeing thematic investors look focus on prioritized capital to those who need it most, women led startups. marginalized groups and yes, it is repetition but this is what we're talking about everything the day on the show. it is happening in real time. >> it is interesting to hear the dovetailing of what pitch book has seen. the brazilian commitment to women and minority led

businesses even throughout the back end of 2022, many have worried as we enter some sort of downturn that they will be the first ones left behind. that does not seem to be bearing out. that doesn't seem to be the case. ultimately, gen z and millennials want to invest in something they believe in. it is not just talking the talk but walking the walk in some way. >> we are seeing the data. we are seeing it in action, the story behind it. i think we also have to focus a little bit on public markets. we are so focused on private. there is a lot going on in the world of stocks. there is a lot going on. this is bloomberg. ♪

>> welcome back to bloomberg technology. ed ludlow is to the new york. let's talk ev's. >> there is a lot of news around ev's in the market. the first thing that caught my area -- my eye was lucid's for year. they produced over 7000 vehicles, exceeding their guidance. this would cut its targets twice

in 2022. they cut to 14,000. they produced just over 7000 but delivered very few to customers. the market liked it. it was overleaf in the stock. tesla was actually significantly lower despite there was this logic that you get the inflation where we thought it would be. the fed would raise rates in increments. may be testable get caught up with the rest of the tech trade. it did not but it did close up .3%. ford is up 1.6%. it's 10th street session higher, the longest streak on record. i think that is really interesting. we did get that data last week, ev sales in particular. i thought it would take a look at this chart. ford is the number two seller of electric vehicles in the united states. this kind of tells the story.

those big bars are last year and this year for tesla. ev sales globally. 1.3 million at the end of 2022. globally granted. i put that u.s. data next to it. that is principally where they are selling. you have the f1 -- f-150 being released. mainly what they are selling is the mustang marquis. context is king. ford is catching up. they are closing the gap. my question is is the competition coming to tesla? that chart is to demonstrate this is the market. that leader is so dramatic. >> it is. some of are still exposed. some questioning how committed they should be. let's talk to the local. mark, a great quote, it was like we need to get this man on

again. you said with all the moving parts, you said there are too many unknowns to get a good handle on what an appropriate valuation is for tesla. you see it as a train wreck, is it? >> it could be. if you have a stock that is down 70%, i think that is the beginning of a train wreck. i do think it is a great company. one of the things we try to spend a lot of time doing when we are looking at stocks is separate the difference between a big jazz over a company under for the good stock. i do believe it is a great company. we just don't believe it is a great stock right now. some of the unknowns have been pretty well documented. ed talked about some of them. when you go from having an over three month waiting list to get a car to none, when you see price cuts in china.

china is a bit of a different market but they do have competition. how long until this price cuts come to the united states? -- those price cuts come to the united states? what is the appropriate price for this? what are you supposed to pay for these earnings? there are a lot of people that will say now it is trading at 24 times, something like that. it is down significantly. it is now 70%. that is not the way i think investors are supposed to look at that. what i meant by unknowns is because we don't know, because it is unclear how long the price cuts are going to have to keep going in china, whether they are going to come to the united states, why would you jump in now? why would you just wait to let the dust clear? i don't think it will get away from you.

greg maybe even more elevated to a certain degree. what do you need to hear? is it the culture around elon musk? is it the fundamentals? is there anything that could be fixed that would make you say this is getting back to a good stock again? >> not immediately but there are some things. when is the last time muska tweeted something that was silly? i think he is starting to get it. he started to get that much of the things he is doing outwardly are not helping tesla. it appears he has backed off of that. demand is the issue. it is not just the united states. they have really good, robust competition in china. i think it is waiting to see where this will all shake out.

the other thing is they sort of had this market to themselves frequent a long time. there are other companies that can make good the for vehicles. the mustang is pretty cool. >> you guys do hold tesla shares. >> we do own it. i would be quick to tell you that we are at a benchmark to the s&p 500. if you have a second, i will talk a little bit about that. the volatility of tesla on the upside and downside is such that we think being out of it completely exposes you too much to the s&p 500. >> that is the market structural dynamic point. we showed a banner on the show a second ago about tesla's expansion plans in china and being on pause and what bloomberg reported overnight was

according to sources, this plan to double the capacity of the shanghai plant to nearly 2 million vehicles annually is on hold due to influence from the chinese government, the concern is elon musk who is also the ceo of spacex and spacex offering the starting product is concerning to the chinese government because if starley were able to use this, it could bypass chinese firewalls. the bloomberg would be reporting latest on that. my question is how core is the china story to a name like tesla? >> it is very important. it is interesting. i think the reporting you just talked about is likely corrected. i also wonder how much of the putting it on pause was we see a lot more competition now than we

did six months ago were a year ago. therefore, it might be prudent to slow your roll a little bit rather than go full force. we do look at, not only the number of vehicles being delivered, we do look at the geography. china is a big market. that is why there are a lot of other ev players over there. it is important. >> can we talk a little bit about disney? my understanding is you have a very small holding of disney but we talked in the show about what is happening with the active investors. >> i think the short answer is absolutely. let's look at a couple of facts. one is i think the issue with disney starts at the top. i don't mean bob iger, i mean the board. the board has sat around and watched this company since 2016

underperform the s&p 500 by almost 60%. but for one director, they all sat through all of that. they also set through trying to figure out how to find a successor for iger year after year. i think there were four different contract extensions he had before they ended up picking that. he does have a point. in many respects, there is a halo around bob iger. it is disney. the performance of disney has been miserable and i think -- i am not a big fan of activist in general but i think that he can bring a discipline to disney that has been lacking. whether it is on expenses, whether it is on mna, a lot of things that disney has done

wrong but everybody has the soft spot for disney and a soft spot in their heart for bob iger. at the end of the day, for us, it is an investment. that investment has not been very good. having one of 12 seats be nelson pelz, the way he has come and had been very honest about not wanting to replace iger, i just wanted to try some new strategies out, i think those ideals will help them. >> very matter-of-fact with the investor perspective. we are grateful to have you on, bringing us the market take on the companies we are tracking here. twitter employees at the asian headquarters were forced out of the office. by the landlord. we will explain why. this is bloomberg. is it no

>> in today's going viral, we have a new story coming out on twitter and asia. did you hear the singapore office of twitter were told to empty out their desks and vacate the premises the end of the day? this is all told -- all according to the people familiar with the situation. was he even paying his rent? >> the first thing about that is that office was gutted unfortunately. it is completely in congress with the policy of the san francisco office. in san francisco according to sources, they put beds into the office so employees could sleep there overnight. that upset city officials. >> am i right, he is not paying the landlords of san francisco? maybe that is the argument here.

paying over in singapore. do you imagine just stop paying your rent? that is what is happening here. meanwhile, that does it for this edition of bloomberg technology. speaking of audio, don't forget to check out the podcast, iheart radio, apple, spotify, where you get your podcast, allow to review this week. this is bloomberg. geeknet -- this is bloomberg. ♪

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