way, shape or form, and unfortunately, people around the world are seeing that every single day. when you look at the power of that, it's really restoring the power back to the people. there's nothing that cryptocurrency on block chain can't do better, cheaper, in every way faster, more transparently than the financial system that we have right now. as i sit here in our organization, there's not a friday that goes by where i'm not chasing a swift wire transfer hoping it comes in before the 4:00 p.m. deadline, or trying to send one out. you can transfer millions of dollars worth of bitcoin overseas while having a glass of wine with your wife at 11:00 at night. that's night. that is a beautiful thing. our financial system in this country is antiquated. our financial system in this country has been punitive to so many different people, so we are reinventing the financial system

and american bitcoin is a part of that. obviously, world liberty, in terms of stablecoin, which, by the way, will bring tremendous wealth into the united states as well as deify is a big part of that. i am all in, personally. i believe this with every part of my heart and soul. sonali: your interest is in crypto and so from the president as well. the administration's focus on making it more accessible, should there be a firewall if there is not already? eric: virtually none. my father has always been a big part of cryptocurrency. it's one of the things that got him elected. he became the champion of an industry with the most unusual people. people who traditionally were not republicans. who may not have been hard asset people like my father was his entire adult life, but he fell

in love with an industry because the regulators were going after that industry in the same way they were going after our family. they were throwing lawsuit after lawsuit on them for no reason, canceling them, de-banking them. they happen to be doing the same thing to our family through politics. it brought maybe two unusual groups together, our family in this movement, as well as the crypto industry. there is no doubt, no shadow of a doubt that the crypto industry, bitcoin industry come him showing up at every crypto conference and speaking at it, becoming the first presidential candidate to do so, open his eyes to a lot of the industry and brought massive continuity between the crypto industry and our family. it's a beautiful thing. this started long before he won the election. my father is a massive believer in the cryptocurrencies, as am i , and our critical experience is what brought us to the table in

this a financial frontier. tim: i hear what you say when you say there is no conflict of interest and you're not communicating with your dad about crypto, but i would say that there are critics who say the actions taken by the white house and your family are not necessarily actually for the crypto industry and are instead enriching your family rather than making the industry better. what would you say to those people? eric: we popped up a company a year before he was elected president, thinking that that could somehow enrich us. by that standard though energy prices enrich us because we use gasoline in the long care of our golf courses. the entire world is going towards the crypto industry, no question. the financial system is antiquated. the financial system is no longer 9-to-5. it is just the reality. tim: right -- well, i only push back and say that someone could argue, he is launching meme

coins that critics would say don't have any inherent value. that could be an example. eric: the meme coins did pretty well going to a $35 billion market cap overnight. that was the crypto industry saying we love donald trump. this is the guy who stood behind us here the guy who believed in us when gensler was going after all of us, stripping bank accounts from us left and right, not giving us the rules of the road and then trying to imprison so many good people in the industry who just believed in a higher form of technology and more efficient form of technology. crypto is here to stay. america either leads the way in the revolution or gets left behind. you know, from real estate and what i do, i am all over the world. everywhere i go, every country, every person, every big corporation is pushing cryptocurrency. they believe in it, they wanted. america either leads the way or gets left behind.

sonali: one question about world liberty in particular between the meme coins and how much money was raised, world liberty raising $550 million in governance tokens, what do they use the proceeds for? eric: world liberty, some is getting putting into a treasury to invest in crypto. you can go right now and see exactly with the holdings of world liberty is. american bitcoin will have the same transparency, so you see exactly what we have, what we have in the treasury. we believe in cryptocurrencies and reinvest in cryptocurrencies. that's reassuring for the industry that you are not just pulling the money out, you are keeping the money where you believe it should be utilized. sonali: i want to bring -- >> the vision of the business is clear. american bitcoin. we want to build an america -- you think about the beauty of bringing energy into the data

center infrastructure to derive compute that prioritizes bitcoin. we are bringing together crypto and what makes america great, the infrastructure we own and energy policy we have. the commentary and conversation has been, there should be no secret in terms of the administration and crypto. people who voted last year knew exactly the crypto president they were getting. anyone can buy bitcoin and have that exposure. as we launch american bitcoin, and talk about the business, it is clear that we believe in bitcoin, we believe in america, we believe in the energy infrastructure that lies here and want to build a company leading in that sector. sonali: i think that this is an important question in the vein of what this means for a strategic bitcoin reserve. initially, the idea was forfeited bitcoin, seized bitcoin.

the creation of this venture, what does it mean for the ability to mine bitcoin for the creation of a reserve? asher: if we talked about a reserve for american bitcoin, we are all in. one of the first publicly traded companies with bitcoin on the balance sheet. american bitcoin will mine bitcoin, hold bitcoin, create the exposure. whatever the aderholt -- state governments, a lot of state governments are bringing up strategic reserves as well. we will lead by example, as we have historically. with american bitcoin we will mine it for cheaper than it costs and hold it and be long-term veterans of the asset. sonali: we thank you both for joining us on the heels of the creation of a new company. we are looking forward to seeing exactly where that goes. that is all for bloomberg crypto. same time, same place next week.

from me and tim, this is bloomberg. ♪

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>> welcome area just over 20 four hours, president trump is set to announce highly anticipated tariffs are the levees are expected to affect a wide range of nations and industries. moments ago white house press secretary karoline leavitt saying that tariffs will go into effect right after that announcement. you are wondering when they would go into effect? she said that would happen immediately. market gains from the s&p 500 climbing. it's now up .1%. the nasdaq 100 is up .4%, but

we've reversed some of those gains. the two-year yield, more of a drop as money continues to flow into the safe haven a fixed income today. we have the two-year at 3.85 and change. gold above the 300 dollar mark. outside of tariffs, meta's head of artificial intelligence research is set to leave creating a high level vacancy as meta looks to compete aggressively in ai. the vice president leading their fundamental ai research group announced her departure internally today according to a copy of her post reviewed by bloomberg. we're joined by the reporter who broke that story. why is she leaving now? >> her explanation is that she has been there for eight years. eight years at a tech company is a long time. the departure leaves this

important vacancy at the company at a time when they are spending very aggressively on ai, competing aggressively on ai, and making this the company's top priority. even though on the surface she says that she is leaving because she wants a break, it is certainly not the ideal timing for a company pushing so hard into the industry. vonnie: they must have been a sudden departure given that they don't have anyone to take her place. that is not something that a company likes to do, have a vacancy before they have someone to fill it. kurt: she will stick around until may, so there is a month or month and a half that she will be there. this is an important role. not necessarily something easy to fill, because well there are a lot of people who would love to work in the industry, it is specialized and competitive and

they will have to convince someone they want to take on the job. it's a big deal she is leaving and will be interesting who they picked to fill her shoes. vonnie: kurt wagner, thank you. great scoop. our stock of the hour, ford. over the past five days auto sales for the first quarter coming in showing ford saw a rush of buyers in march. the stock is still lower ahead of tariffs that are expected to be announced tomorrow. with us to explain what the auto industry is facing is the head of an sites at edmonds. is there a big difference between the automakers here and what they are facing? jessica: definitely. quarter one will look different than the second quarter when the tariff is implemented because it changes everything. they have to adjust their pricing strategies, consumers have to figure out what they can afford, and dealers have to have tough conversations about prices going up. what we saw the first quarter was positive across the industry with a lot of companies doing

well. some effect from the tariffs, but the announcement was so late in the quarter it wouldn't affect it monumentally. we hear that there was a rush of consumers this weekend trying to be the tariff and get their vehicle at a better price. vonnie: mercedes was looking at pulling entry-level cars. we don't know if that will happen, but it's something they were looking at. a lower grade suv from mercedes would not be profitable if as the tariffs are stated going to affect. what are the implications? could we see a range of lower-priced cars leave entirely? jessica: the interesting thing is, we have already seen a lot of lower-priced vehicles leave the market. you don't see as many subcompact compact cars. now with the tariff complicating things further, i could see a situation where more go. now, we have a new car market that only caters to people with very high incomes. as it stands, when we look at income levels that buy new cars,

the highest levels keep growing and people in the lower end mid are simply priced out of the market. vonnie: we know that the heads and panels of automakers were meeting with the president to try to sway him and have some of the lower parts of their vehicles not tariffed, but would that not make people just more likely to repair their vehicles then renew them? jessica: not necessarily. a lot of people do that and we seen that as prices have been high, but we are finally seeing older vehicles being traded in for new vehicles. with the tariffs on parts, and that portion has not been completely worked out, that will complicate things because repair costs will get higher. a lot of consumers get to the point where they get to repair their vehicles or by anyone and it intrinsically feels good to

have new thing so they go that way, but it's not just people buying new cars. it's people repairing their cars. used car prices are going up as a result of tariffs and higher prices on new vehicles. even dealers are having to pay more. insurance costs are going up because parts will cost more to get your car repaired. it is across the ownership cycle. no one is immune to the tariff if you drive a vehicle. vonnie: if you're an automaker or dealer you cannot collude with other auto dealers or makers, so how do you decide how much of the pain you are going to take and where you will price your vehicles given that you don't know what the others, gm, ford, stellantis, are going to do? jessica: it's a tough question that i'm sure they're all grappling with peer they don't know the duration of the tariffs. will they be throughout trump's term or last for a short time? do you change your pricing strategy based on that?

when they look across their lineup, where are there places in which there is runway for higher prices? the $100,000 vehicle, $75,000 vehicle? not the lower prices because those customers are pushed to their limit. i imagine that they won't be applied the same way to each vehicle. each vehicle has a different tolerance for prices, and that is going to be tricky. it may not make sense to some consumers or dealers, but it is where we are because the tariff is so significant. 25% cannot be absorbed. vonnie: one of the stated goals of the president is to have more manufacturing in the u.s. is it possible this will create more manufacturing jobs? jessica: it is tough to say. re-shoring is a goal but for the auto industry it's tough because that is a long time horizon. you're making something very complicated and it has to be extremist say for everyone who owns one. the fact that you could move it

here, i get that sentiment, but there needs to be a longer time horizon, not the short-term moves. anything that they promise will be something in the future, not in the next 60 days or next year. we are talking at least 10, maybe 15 years. vonnie: they will be a busy few days. that is jessica caldwell, the head of insights at edmonds. from the consumer to the investor discussing how markets will respond to tariffs with morgan stanley's michele weaver. this is bloomberg. ♪

vonnie: as mentioned tech leading the way. with more on how companies plan to navigate tariffs, michelle we

have a little more detail in the sense that we know that tariffs will go into effect immediately. it didn't help the market today. what are your baseline assumptions? michelle: base case, we are assuming you get another 10% on china, moderately higher on china. that you get product level more targeted tariffs on the european union. product level targeted tariffs on southeast asia. that you see usmca exemptions holding up for mexico and canada. vonnie: does it create a market event? is the market trading rationally? michelle: you will still see you policy uncertainty persist. administration has been clear that they are going to go into effect immediately, but there could still be room for a negotiation. how much signaling of room there is will impact what the market does tomorrow if we get the baseline that i just described. i think that you could see a relief rally to 5800 over the next week if you don't get a

super broad tariff package. vonnie: do we expect to continuously see these downdraft and rally cycles? pharmaceutical companies will be next, right? michelle: it depends on how much uncertainty we get cleared up. there will be persistent uncertainty, but we could go back to 5500 and re-test some of the lows if you see broad country-level tariffs on the eu and southeast asia, given that the market is expecting a more targeted package. but we have yet to see what will happen. vonnie: we get what we get tomorrow. can we extrapolate anything from that? for example, if it is a more maximalist tariff regime, can we decide that he will be maximal when he moves to pharmaceuticals? michelle: for us, what is the most and focus is capital goods, tech hardware, and consumer goods are the range of impact is going to vary by the amount of

mitigation companies are able to do. if i look at the positive end for capital goods, they have a high degree of pricing power. they are likely to see whatever costs get put on because of tariffs and put those on to their customers. tech hardware has a lower degree of pricing power. you're starting to see demand slip, but better than for consumer goods. consumer goods names, a strong negative market reaction and we expect that to continue. you will have a much harder time passing off your cost to consumers. those names haven't been able to stockpile inventory because there is risk. that is where we see key risk coming. vonnie: if you are a company involving in the risk mitigation strategies, that will take up your time for the next little while. what if you are an investor? michelle: i think looking at the degree of pricing power, what companies have done so far, and trying to understand who is best able to mitigate the risk, who has defensive-type qualities,

who has pricing power, who has a good fx hedging in place if you are a multinational company, and who has the potential to redirect products? another thing that companies can do to mitigate risks is to take products from china to the u.s., they sell in europe so redirect them to europe. it is mitigation and who is best positioned. vonnie: the real-world mac -- macro picture will change, there is a vicious cycle, but currently the macro picture is looking weaker. do you see rate cuts impacting mitigation charges? michelle: economists are expecting one rate cut in june a little below consensus, and i think that's very much on the table because of pricing power being the lever that companies are likely to turn to peer you could see that push-up inflation a little bit, but the important thing to remember on inflation is that tariffs are impacting prices for goods, not in prices for services.

while there is likely to be an effect, is not impacting every component that goes into inflation. vonnie: michelle, thank you. it looks like we will get a repricing in the bond market if it does turn out to be one rate cut this year. michelle weaver with morgan stanley. let's look at the markets because we got the news a few moments ago that the tariffs will go into effect immediately after they are announced tomorrow. we anticipate that the president will announce them at 3:00 p.m. eastern and karoline leavitt saying that they will then be in effect. we did start off the quarter with a gain. the dow industrial complex is up about less than .1%. the s&p 500 is up .3%. nasdaq, two thirds of 1%. bitcoin gaining today and after the trump interview, even more. hasn't seen that level in quite a little bit of time. we are seeing money flow into

bonds as investors show that they are a little fragile. we had the 2-year 2.85 and change. "balance of power" is next. this is bloomberg. ♪

>> from the world of politics to the world of business, this is "balance of power."

live from washington, d.c. >> it's the day before still no clarity, welcome to the fastest showing politics as we count down president trump announcing tariffs on most imports into the u.s., so he says. we still don't have details. i'm joe mathieu alongside kailey leinz. wall street on the rose garden tomorrow, still may not get all the info. kailey: it's going to be a question of how specific the president is. today, april 1, happy beginning of the second quarter. the deadline for some of his most senior trade oriented officials. they are going to provide recommendations today ahead of the announcement tomorrow. president trump told reporters