i will ask david sachs who was just subpoenaed by twitter. she is next. this is bloomberg. ♪ >> shortly after the possibility of share buybacks, elon musk has sold $7 billion in tesla stock. it is the biggest sale for musk ever. he says he will buy tesla shares again if the deal does not close. meantime, a number of people in the inner circle have been roped into this legal fight. among them are larry ellison, marc andre guest, longtime tech investor, david, good to have you back with us. you got subpoenaed. i know you said you were getting a lawyer to make this go away. what is the latest on that? >> i do have this very large, very broad subpoena. it is probably the thickest subpoena i have ever gotten. i know you're not supposed to talk about these things in these situations but i have to wonder if that is the point. i have been a vocal critic of twitter's management. maybe they don't want me talking about these issues. i can save them a lot of time and hopefully some legal fees. i have never been in possession of nonpublic information related to their

i will ask his culligan longtime friend david sachs, who was just subpoenaed. this is bloomberg. ♪ emily: shortly after achieving the possibility of share buybacks, elon musk sold nearly $7 billion of tesla stock. tesla and twitter shareholders appearing to welcome the news. it is musk's biggest sale ever, and he says it is to avoid a last-minute selloff if he is forced to go ahead with the deal to buy twitter. he will buy tesla shares again if the deal doesn't close. a number of people in musk's circle have been rubbed into the fight. among them, larry ellison, and my next guest, david sachs. good to have you back with us. you got subpoenad. i know you said you were -- you got subpoenaed. i know you said you were getting a lawyer. any update? david: no update, but i have this very large, very broad subpoena, probably the thickest subpoena i have ever gotten. i know you are not supposed to talk about these things in these situations, but i wonder if that is the point. i've been a vocal critic of twitter's management and maybe they don't want me talking about th

, you know, some people credit david sachs like as one of the people who really refined the product vision he's not glia co-founder, but it people would put him in that group. i found that that there were certain friendships that i think matured and and developed more different, you know differently than others. you know, they're always bonded. these people are always tied to this experience and they have invested in work with one another. so russ simmons and jeremy stoppelman built yelp together the three co-founders of youtube obviously work together to build youtube a number of people at a firm max legends company our alumni from paypal, you know, there were people who joined elon at tesla and spacex. so i think it depends on on which friendships you're talking about. but for the most part what i had heard was like largely positive relationships and certainly very strong professional ties across this group. yeah, no certainly on the on the investment side. there's sort of just if you tried to map all of the investments going from from peter thiel to elon to roll off investing in

the personalities involved elon musk read hoffman the founders of youtube peter thiel max legend david sachss a like the avengers right? i assumed somebody had done this and then when no one had the other thing that i noticed is i asked even a few questions was that the stories were just fantastic like the untold stories were so good. and i knew there was potential there. and so that's that's how i came to it. but i most definitely came to it as an outsider, you know, because you're my friend i can like admit like i had called you with like the most basic questions right about like well, what is it was free money and like what, you know, it's like terminology, but but i will say that the virtue of actually being an outsider. i found that the same thing applied in my last book and in this book if you're an outsider who's trying to decipher something in order to make an audience understand it you have to ask really basic questions and then build it back up in the writing so that the best the place i was most excited about that is, you know, everyone thinks they know what an ipo is right like a

they had behind-the-scenes if any at all but what might they be hoping to get from someone like david sachsissue of the bots is where the rubber will meet the road. it is my understanding that it is very difficult to get very specific numbers on these things. everybody has to deal with them. it is not just twitter. it is a common problem with the tech industry. it is not going to be an easy argument for mr. musk to win on. the twitter people say it is all sort of pretext ginned up to provide a basis for him to walk away. judge mccormick is going to be the ultimate decider of all of it. >> what is next? >> we are still in the discovery phase so we will still have a blizzard of subpoenas. next we will start with notice of depositions. there will probably be hundreds of depositions in this case, bankers, esther musk, twitter people. everybody will have to sit down. then we will go there in october and it should be quite a show. >> a show indeed. we will follow this blizzard of subpoenas. i know you will continue to be very busy through october. thank you for coming in. we appreciate it. that d

plus, what is next for the metaverse and david sachs, one of the many people in elon musk 's inner circletter. this is bloomberg. ♪ >> the following is a paid program. the opinions and views expressed do not reflect those of bloomberg lp, its affiliates, or its eis a paid presentationwing furnished by rare collectibles tv, llc.

david sachs is a host of the all-in podcast. on kfan of the podcast. he joins us here.is so great to see you. i'm smiling as we hear that new announcement from twitter to control conversation and define what misinformation is. you have a lot of background here. >> david: there are legitimate things that twitter could do to improve the integrity of elections. they could help prevent bot work spend the counts from posting if joe from idaho post something, it would be nice to know that it really is joe from idaho. the part to be concerned about is where they say that they are going to take down misinformation that could jeopardize user safety and we saw that during covid, this was the goldberg got the idea user safety that was used to take down stuff about covid and that turned out to be true and part of the problem here is that twitter's employees have a blind spot with regard to their partisan bias, something like 99% democrat. and so there's a lot of issues where they think it is misinformation but really, it is just that that is their opinion on that matter and no one

joe mathieu, david sachs does a phenomenal summary as we stagger with china and taiwan over 30 years. and he says there has been a rhetorical shift in washington starting with president trump. it is not a servitude, but he looks at it with pompeo and trump. his biden and speaker pelosi simply following on from the work that trump and pompeo laid? >> they probably don't like that wording but it is essentially the reality. this is largely the same relationship here. what deliberate language coming from the white house yesterday. a lot different than what we heard from joe biden two weeks ago. that caller opens with those remarks. the president said the military doesn't think it is a good idea right now. if he hadn't said that, this would be a very good conversation. everyone is looking back to 1997 and newt gingrich. 25 years since a speaker about house touched down in taiwan. but beijing is looking at '91 when the beijing police chased nancy pelosi and some other lawmakers out of tiananmen square when she unfurled a pro-democracy banner. there are questions about whether she will make

joining us crowd venture's co-founder, david sachs, where does that leave us, we've been having this discussion, have markets got ahead of themselves, where are you on whether this is a bear market rally or the start of something more? >> well, i think the market evidently did get ahead of itself, it seemed to make a big deal out of the fed chair powell's statements about how rates were close to neutral. and, you know, the problem with that is just the fed said a lot of things over the last couple years that turned out not to be right. i think ultimately the market will be driven by data, not by -- and then ultimately the fed's actions will be driven by data, not what the fed says today about what it's going to do at some point in the future so i tend to -- you know, obviously i don't know exactly what's going to happen, macro investing is not exactly what i do but yeah, i do tend to be pretty skeptical that all of the turbulence is behind us, and so i wouldn't bet a lot of money on it but i do -- but i would basically expect a double dip as sort of what is probably what i would expe

with elizabeth economy and david sachs you a definitive on china.s done it better than you on your website. i want to synthesize all you and your experts have learned about how this president of china gets from nancy pelosi to the party congress. richard: the challenge is what has worked for china for the last three or four decades, not just for xi jinping but for his predecessors and the communist party, has been the deliverance of high levels of economic growth. that was the basic bargain with chinese citizens. you do not worry about political rights but we will give you an improving standard of living. the problem for the chinese is that because of everything from their own economic mismanagement to covid to supply chain issues, you name it, the leadership cannot deliver that anymore. the question is how do you justify a country of 1.3 billion people being run by 90 million, which is the communist party. i think a lot of observers are concerned that increasingly the substitute will be nationalism. that explains the overreaction to the speakers tr

i wonder, given the news we got from goldman sachs yesterday, david solomon asking everyone to get back in the office five days a week, paypal has a very different strategy they basically say work for your customers. if you need to be in knifed days a week, come in five days a week is there an opportunity to poach some of the employees that have in the past been -- >> i think you've seen a lot of tech companies laying off people on the west coast. i think companies that are in very good financial shape, like a paypal with their fortress-like balance sheet, have the opportunity to be more selective and to potentially have to endure less wage inflation than they had to when the labor market was red hot in tech by the same token, i think the company is very disciplined in terms of the types and number of heads that they're adding because, again, they're trying to be a lot more disciplined on cost, and they've also narrowed the number of strategic priorities they're focused on. i think they'll be pretty selective with their hiring. >> jason kupferberg, thantion for being with us. >> thank y

david: joining us now is goldman sachs chief asia-pacific economist. good morning. let's start off with the bok. yes, they're not hiking by 50, but alluding to capital flows, it almost toes you that they michael moore, as far as -- they might go more as far as the path of tightening. >> we think they are nearing the later stage of their tightening cycle. they had previewed they were likely to slow to 25 basis points at this meeting. what has changed over the past two or three months is growth has slowed, as you noted now, export growth is decelerating, so weighing the risk to growth against the risk to higher inflation is more challenging than it was a few months ago. plus, you're seeing signs that global goods inflation has peaked. it does not mean we are out of the woods with the inflation problem, but those things point to the gradual pace of tightening going forward. rishaad: i mean, you look at the u.s., how does it play out? how much pressure is there on central bankers in this part of the world to act when they do not need to? >> well, in general we have seen

euro let me correct myself -- david: let me correct myself, the new forecast from goldman sachs, 3%. if you get lucky, you might see the chief economist of china. maybe. yvonne: what is behind that second downgrade in the last few weeks? 3% for goldman sachs. the outlook is darkening as we speak. take a look at the geopolitics. the u.s. and taiwan have begun formal negotiations on a bilateral trade initiative. let's bring in our senior executive editor for more. john, we started to hear rumblings we could see more negotiations on trade between u.s. and taiwan. how far ranging do you think this relationship could go? >> i think the u.s. is interested in trying to show support for taiwan. we had speaker pelosi visit recently. as you said, we have known they were coming. there were consultations earlier in the year. when the u.s. announced its indo pacific framework that did not include taiwan, there was indications would be a separate deal for taiwan, because many countries did not want to sign on to a deal with taiwan and upset beijing. it is not a surprise, but given the tensions, it

the workers, the fed easing and the crazy stuff, now switch back to the employers where david solomon at goldman sachsd james gorman at stanley, said you don't want to come to the office, you are out. >> the reason we don't yet have a full blown recession, you can argue whether we are technically in one or not, we had a huge number of jobs and fewer number of people looking for jobs. in excess of 11 million job openings compared to the people who want a job. that is changing now. we have begun to see it. >> sandra: those are not the white collar jobs. >> the bottom line, it bleeds through the various labor groups and that does sort of buffer the effects that we are having of the problems with the stagflation that we have, which is real. and as we go into perhaps a more severe recession, particularly into 2023, we may find that people are going to be so anxious for jobs that they are willing to go into an office even those not willing to do so now. >> if the fed raises rates, hate to turn it into an interest rate conversation, 75, 75, the wall street kids are like oh, oh, my job is in jeopardy. kind of

now, goldman sachs' ceo david solomon seems to have done a 180 saying he understands safety is an importantue for workers and understands as well why so many don't want to come in or come in that often and in the amidst an environment where apple is demanding three days a week for workers. but a lot of those -- where those apple offices and/or stores are, because a lot of them are in crime-infested areas. let's get the read on the significance of all of this with gary kaltbaum, ann berry and victoria fernandez, crossmark global investments and marketing strategist. welcome to you all. gary, to you first. i mean, you were telling me a long time ago it's not covid, it's crime. and that is what's giving people pause about returning to their offices, and then they see an incident hike this where a poor guy out of the blue is sucker punched and still lingers in a hospital getting treatment and wonder there but by the grace go i -- so what happened? >> the number one to be job of a government is to protect the citizenry, number 2-10 is the same. and i just think when you're an employer right now,

sachs. is this marcus by david solomon?ttached to his consumer projects. >> this is a fed project he has embraced and he wants to go the course. questions have been raised since the implementation of the strategy. we are top euro for billion dollars towards the end of the year. as you do not see a turnaround anytime soon, patienv will start -- patience will start to wear thin. you are seeing that in delaying the launch of the checking account which is being delayed and one of the issues the u.s. has been hit by. tom: the heart and soul of this comic goldman sachs has always been firm in the partnership debate. is everyone on the same page is this a heated debate in the firm. everyone is on the same page with respect to consumer. questions will be asked like is the lagging stopped. where they too reliant on their core watching -- you're losing a lot of money and you still have to wait quite a bit longer to get to the david solomon i told you so moment. lisa: goldman sachs bit a very public foray into the consumer banking sec

there's two options, either there's a new normal where it's a hybrid model forever, or what david solomon and goldman sachsing, it's over. there's no new normal. come back here, whatever you get from the camaraderie and the -- whatever goes on in face-to-face office settings, it's important we're going to have that again is that going to -- we going to accomplish that eventually, lydia? are there going to be stragglers that two or three years from now are still not having people come back >> well, if you speak about wall street, i think this is an industry where people will be expected to be back. you know, as i mentioned, these banks want to pitch themselves to clients as places where if they want people in fiver days week, the other piece of this the new york post reported on last week, jamie dimon is quietly making a stealth campaign to get his people back five days a week, and of course this comes as he's investing nearly $3 billion to build a new global headquarters that's taking up an entire city block in manhattan so a lot of these firms have made huge bets on real estate. they can't go back and und

policing, on subways, on buses and other places david solomon, the ceo of goldman sachs said look, thishearing it more and more whether it's true or not or whether the perception is worse than the actual situation, i think we can have that debate. but the question is, what do you think you need from mayor eric adams? what do you think you need from the city in how important is that perception? >> you're right, you know, we need our subways to be safe, but we also need them to feel safe and mayor eric adams, we are blessed to have a mayor who's passionate about this issue, who is an ex-transit cop who really is interested in subway safety and who rides the system very regularly. so i talk to mayor adams, and what he's doing is responding to our request to put cops on platforms, and we're starting to see cops on the trains as well that's what makes riders feel safe they're telling us that again and again to the mta in our surveys. i think we're hided eaded in the right direction. >> there's a lot of homeless folks on the subways, a lot of folks that seem to be mentally disturbed. everybod

david: stephen i have to ask for a very quick answer on this but goldman sachs is predicting now thatagain before the end of the year. are they on target or not? >> i do believe. i'm normally become the lagger heads with goldman, they are great analysts over there, and this time around, i'm on board. i do think that we have not addressed the global imbalance between supply and demand so i do see oil prices higher. david: there may be some crow eating from the white house if in fact that happens stephen schork good to see you. coming up donald trump signed a law back in 2018 that made the mishandling of classified information a felony. could that come back to haunt him? brett tolman will join me later to take that on and los angeles is looking to hotels to solve the homeless crisis. they want to house homeless next door to paying customers and force hotels to do it. kelly o'grady has that report, coming up next. shingles. some describe it as an intense burning sensation or an unbearable itch. this painful, blistering rash can disrupt your life for weeks. it could make your workday feel

quarter earnings, though, are leading goldman sachs to at least maintain its 2022 s&p forecast. 2023 growth, that would be 3%. joining us now is more is strategist davidtin. '23 is what we care about, isn't it we're in the second half of '22. and that's what i'm getting questions about, is it 240 s&p earnings or 200 that's a big difference. >> absolutely. managers are focused on the outlook. the concern is you have a 1% gdp growth in the next year, and that would be a headwind, but the higher inflation -- that's why, david, the level of forecasts for the consensus is probably too high. our forecast is something of the vicinity around 3%, as you indicated, about 3% earnings growth that's pretty modest that's the idea that the s&p 500, therefore, at they levels offers maybe 4%, relatively modest however, as you indicated, if we had a recession, that would put the earnings down around 11% that's a little less of an earnest decline, because if you had a scenario with recession, it's not our baseline, but the idea would be a relatively more modest recession you don't have some of the exacerbations or uncertainties around higher leveraged balance sheets, so

. - in the lab, david has successfully corrected mutations for genetic diseases, including tay-sachs and cystic fibrosis. and he thinks this prime technology will soon be ready to help people with genetic disorders, like annabel. how far off would you say is a potential human application? - we should have some of the first drugs ready by, perhaps, as early as within the next 5 or 10 years. it's aincredibly exciting time. if you had asked me 5 or 10 years ago, i would've said it still is in the rem of science fiction. - yeah, that's wonderful. this experimental technique will become science fact, giving affected individuals the prospect of a better life. but for now, reworking the genetic codes of people remains controversial. in 2018, a researcher stunned the world by using crispr to gene edit hiv resistance into the embryos of a pair of twins. called germline editing, this technique on humans was considered premature and was widely condemned in the scientific community. - the first gene editing in humans was a profound misuse of science, with profound implications in society in gene