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Silicon Valley, Nbon. This is Bloomberg Technology with Caroline.
Hyde and Ed luved Love.
From Bloomberg's London headquarters in San Francisco. This is Bloomberg Technology coming up in the next hour. Markets entering uncharted territory as President Biden drops out and passes the baton to Kamala Harris, who in tech will support her and what it means for companies and crypto.
Blushares of CrowdStrike plummet again is analyst Sandy alarm after last week's widespread outages and gearing up.
For big tech results Tesla, Alphabet and more prepared to kick off earning season for the Magnificent seven.
Vers As checking on these marks, Ed.
We are having a much better day than we did from last week. We are up the most since June, in fact, so more than a month that we've seen such outperformance on the NASDAT one point three percent high after the worst week since April last week. But we have to hone in really on the market impact of the news over the weekend.
Okay, let's get to the outlook for the twenty twenty four presidential election. It took a turn this weekend as Biden announced his exit from the race, endorsing Vice President Kamala Harris to be the Democratic nominee. Bluembost Katie Lyons is in Washington, d C. I think the most logical question to ask is what happens next, because President Biden endorsing Vice President Kamala Harris is not definitive necessarily, though it was an important moment.
It certainly was, and especially considering that it was followed by the endorsements of many other Democratic leaders to be a former President Bill Clinton and his wife Hillary Clinton, members of the House, in Senate, even key governors that were seen to have been potential other contenders for the nomination aside from Harris, have now come out and endorsed.
Her, including today JB.
Pritsker, the governor in Illinois, or Wes Moore, the governor of Maryland. That is in addition to the number that we saw come out in support of Harris in the immediate aftermath of Biden's announcement in the last twenty four hours. The other thing that we should note is that she does have a money advantage. Not only does she have access to the hundreds of millions of dollars in what was the Biden Harris campaign war chest, something that other
candidates would not have the same accessibility to. We also saw in the seven hours in the aftermath of her announcing that she does intend to, in her words, earn and win the Democratic nomination, we saw fifty million dollars in grassroots funding raised, the best day ever for Act Blue, which is a key Democratic funding aggregator. So certainly it does seem that the party is very much getting in line behind Harris. But Edgar absolutely right. Nothing is a
done deal yet. We still have to get to that convention which begins four weeks from today in Chicago on odds nineteenth, where the delegates are going to have to decide who they're casting a vote for, knowing ninety nine percent of them were pledged for Joe Biden, who is no longer seeking reelection.
Important screen that we're looking at right now, Kaylee Reid Hoffman, key person in technology, is one of the key Democratic donors. Will this ultimately galvanized to think some of those that we see in our community and technology and what will they be looking for in any way in a change in direction of policy, or is it more of the same when it comes to Biden.
Well, certainly, Reid Hoffman was one of the first yesterday in the aftermath of this announcement to come out and
endorse Kamala Harris. Other big funders like George Soris have also come out for her, but notably, a number of donors have suggested to Bloomberg that they don't necessarily want this to be a coronation, that they want some kind of process to play out for Harris to actually earn the nomination or give someone else a chance to and what could theoretically be a contested election in terms of policy, that is really what Kamala Harris is going to have
to define for herself. We will hear from her for the first time to the cameras since all of this went down yesterday at eleven thirty am Eastern time. We'll she'll be speaking at an NCAA Sports Day event at
the White House. So those remarks just about half an hour from now, and it's going to be about the ways in which she tries to differentiate herself from Joe Biden expressed that perhaps in not all areas there will be exact policy continuity, given that that is an attack line we're already seeing from the Republican Party suggesting that essentially a Kamala Harris presidency would look very much like
a Joe Biden presidency and that for everything. Republicans have faulted the Biden administration for their suggesting that Kamala Harris not only was there for it, but enabled President Biden to take all of that action. So it's going to be a question of how Kamala Harris may decide to differentiate herself from the man that she has served as vice president for the last three and a half years.
And when it comes to technology, it's also worth pointing out that it's not just Democrats that need to be watched. Jade Vance, the vice presidential nominee on the Republican side, have been highly skeptical of big tech. In particular, he has been supportive of competition in anti trust efforts under the Biden administration, including the praise he's had for FTC Chair Lena Kahan, And of course there may be some alignment with the Democrats in those areas.
Bloomber's Calie lines, thank you, let's get reaction from Silicon Valley and the Democratic Party. Steve Wesley is the CEO of the Wesley Group, but also a former California State Controller CFO and in two thousand and eight co chaired Barack Obama's campaign in the state of California and as back to Biden. He's also been a delegate at eight Democratic conventions. He joins us now from Menlo Park, California. Steve, good morning to you.
Your reaction in.
The first instance to President Biden endorsing Kamala Harris as nominee.
Well, first, you've got to give Joe Biden credit.
It's an extraordinary act of selflessness for him to step down having won the nomination and to do what he thinks is right for the country, to basically say I'm going to step down. It's time to bring in a new generation and to throw things open. Now he's endorsed Kamala Harris, but there's still going to be a process and what would see now, I think is quite exciting. Everybody in the world is watching what's going to happen next.
There's going to be some.
New blood in the Democratic Party. Is it going to be Kamala Harris, who's terrific or is it going to be someone else? And I think there's going to be at least one, maybe two other people that come into the race. I think it's going to add a lot of excitement to the race. I think it's going to mobilize Democratic voters. Everybody's going to be tuning into the convention.
It's just what she wants.
If you're a part Steve, you are in a large group of Silicon Valley or technologists, DEM donors and backers who are doing the math, and you're trying to calculate who can win against Trump vance.
Do you think that Kamala Harris can win.
Absolutely.
She's a known entity, she's got high voter ID, she's an articulate presenter, a former prosecute she will do very well in the debate, and she fire her she's all over high energy.
But there are other candidates like that too.
I think the one who is most mentioned, Discretion Whitmer of Michigan, will see I'm guessing who knows what. I'm guessing there'll be at least one other candidate in the race. And I think it's just what the Democratic Party needs is to eject some new blood to run against a seventy eight year old candidate who seems to be fuzzy on a lot of the issues. I think it's a big opportunity for the Democrats, a lot of energy.
Everybody's going to be watching, Steve, what about the opportunity to finance the Democrats right now? How much do you think this is going to inspire well more of Silicon Valley to start speaking out about who they endorse them with their money.
Well, look, first, there's going to be enormous amounts of money that come in on both sides. In terms of Silicon Valley, I can just tell you right now, Silicon Valley has gone roughly eighty twenty for Democrats over the past two or three or four elections.
I think it's going to be the same this time.
If you look at the current administration's support of the Chips Act, the Infrastructure Bill, the Inflation Reduction Act, the largest green energy stimulus in the history of the planet, Nobody other than by could have gotten this stock market
historic highs, unemployment historic lows. And if there's one thing at Silicon Valum and the business in general, really looks for its stability, I think the Democrats have provided that I don't think anybody could say that that is mister Trump's strength.
So we'll see how that involves.
But I expect Solicon Valley to go strongly for the Democrat, whoever it is.
Steve thus Far a man you know well, having been on the board of Tesla, having supported.
El on Us companies in the past.
He's given forty five million a month, we understand to a pack that supports Trump. Whereas we look to the previous full screen and read Hoffman was the biggest donor previously with a twenty five million dollar check. How do you see those sorts of numbers adding up. Will there be someone who can match that sort of huge, huge gift that we see coming from the world's wealthiest man.
Absolutely, Look, there's going to be huge amounts of money that come in on both sides. But there are a lot of people Ms Gains and Bezos, many of the wealthiest people in the world are strong Democrats, and I think you're going to see equal many match, if not more coming in on the Democratic side. And again with the Democrats are provided over the last four years, historically high stock market race, historically low unemployment. I mean, this
is a good story to campaign on. And if you can wrap all that together with a strong new candidate, whether it's Tamala Harris or someone else, I think that's a winning package for the Democratic Party.
Steve.
A criticism of President Biden's term in office has been his attitude toward and lack of engagement with Elon Musk in the context of electric vehicles and space as well. Do you expect Kamala Harris or whoever the Democratic nominee ends up being to change policy there.
Not for a moment.
I think the Biden administration has been a champion not only for green energy, but to stimulate this boom and electric vehicles. And the great news is, not only are electric vehicles becoming cheaper every year, they're creating huge jobs. Battery plants ev plants being built around the country in blue and red stags. But for the first time this year, you're going to see evs, a parody for control of combustion engine vehicles. This is something that's wildly popular, especially
for young people. Biden administration and I think any of the Democratic nominees are going to be strongly in favor of the new green economy and the fifteen million jobs that the administration is creator over the last four years. I think Trump may be the odd guy out to be holding on embracing introlock combustion engine vehicles at a climb when they're less popular than.
They have been in the past.
Steve, great to catch up with you.
Thank you so much for your time today, Steve Wesley, CEO of the Wesley Group.
Let's talk more about CrowdStrike.
Carro is just pointing out in the session the stock down almost eleven percent. It fell eleven percent Friday following its botched patch or software update that caused an outage impacting eight point five million Microsoft Windows PCs around the world. A number of firms downgrading the stock after the outage real quick on a two day basis, Caroline, It's a stock that's facing its biggest two day drop on record. And I think you and I were wondering Friday, how
does this have legs? How severe is this? And the industry is talking about it. Let's get the latest and bring in Sanjay Merchandani, CEO of Convolt Cyber Resilient Solutions provider. Stock continues to have reaction, Your industry continues to have reaction as well. What's the lasting effect of the outage we leave.
You know, we live in an extremely interconnected world right now, cloud devices, servers, and.
Croudstrike is a popular technology.
We use it as well, and so when something like this happens, there is a long tail and it.
Has to be you know, it has to be cleaned up.
The lessons here and the fix for the most part was fairly manual, so it took time. It wasn't a complicated fix, but it took time, and I think we're coming out of it.
But there's a lot of learnings that we're also getting out of this process.
Sandra, did you have any cause for concern ahead of this about prior updates that crowd strike could run? Then there might have been anything that would signal that such an event could occur.
They're a security company, you trust, You tend to trust security company and the you know, and so there was no there was nothing before this specifically about crowd strike that would be of concern. What is always of concern when you have a large number of patches and a large number of connected systems and dependencies is your ability to really stage a patch test it in your particular environment.
Because no two environments are the same and then once you know that you've got it working where you need it, to push it out. Now, with security, the window that you have between a critical patch and your ability to deploy.
It is very, very small, and so you tend to trust more and push faster.
We have heard from across industries, particularly from the airline industry, the Delta CEO coming out and apologizing because still today there are issues that are affecting their ability to serve customers. Sanjay, when it comes to business continuity, what could a company like Delta have done to prevent the fallout that we now see was two thousand and five h plus cancelations on Saturday.
You know, Caroline, it's it's about resilience.
And people use the word resilience instead of a broad way, But for us, it's about business's ability to get back to life, regardless of the catastrophic event.
It could have been human error in this case, possibly human error.
It could be malicious, it could be internal external malicious, it could be a natural disaster. So what we do is help our customers build a capability, build a platform, build a muscle through repeated testing and scale so that in the event.
That something goes sideways.
You've tried and tested the ability for your business to come back to life. And I think, I think everything we've got going on as enterprises, not enough time is spent on practical capabilities of resilience and more. Sort of you tend to lean on on the academic thought process. Yes, we've got this list, we've done this, we've we've written this up. But how much of your enterprise have you actually tested with a deep degree of confidence?
And that's what we try to enable our customers to do.
Sanjay I wrote in my Tech Daily column this morning about concentration risk, the idea that so many corporates and government entities relied on CrowdStrike, but also that eight point five million computers it was the most critical of computers that were impacted. How could have that been mitigated or prevented?
Think of it as a warning shot.
We've all been sort of sitting back and saying, Okay, so what does my fleet look like, what do my servers look like?
What does you know? What are my users working with?
And it almost makes you take a step back and say, we need to have a very calculated mix so that you're not over reliant or over dependent on any one environment, because that's part of resilience.
You know, that is exactly part of resilience.
And I think for everyone this weekend's been a bit of a wake up call to say, Okay, where am I overdependent or don't have enough control or it could be more resilient. And I think that you know, for all the negative outcome of something like this, the positive takeaway, if you can is let's go back and make sure we're very calculated about how we build out the enterprise landscape.
The av a man.
List analyst getting more calculated on what their price targets are in the company in Sanjay Merchant and is saying getting more calculated or using as well, CEO of Convolt, we really appreciate your perspective on CrowdStrike. Coming up, we're going to be joined by Michelle Grider, CEO of CRACK Institute for Tech Diplomacy over at Purdue for her read on the impact of.
China US relations on the tech sector.
And I'm also looking as we go to break on a share that you need to keep an eye on, down some six percent. Verizon comes out with its earnings operating revenue missed Animal's estimates a few people basically upgrading
their wireless equipment. Total operating revenue thirty two point eight billion, less than one percent from a year ago, up less than one percent from a year ago, and a bit of a miss when the market wanted to see some week overall growth, asking some actural games in wireless filone customers.
Though this is Blue Meg technology.
Take some profit on the AI boom. That's the message to investors from Morgan Stanley, who lowered their view on Asian and emerging market tech names and cut KEYAI chip names like TSMC from.
Their focus list.
The call triggered a rough session for tech in Asia, trading overnight, top of mind for the firm, tougher US curbs on tech sales to China, and a red hot AI market that might have got too hot. So the first time ms has downgraded the sector since his overweight call in October of twenty twenty two. Let's get the perspective of Michelle Geider.
She's the CEO of the.
Cruck Institute for Tech Depotacy at Purdue, an organization dedicated to accelerating the innovation and adoption of trusted technology. Going story, but it is not going away. The United States with its current administration limiting China's access to key semiconductor technology. In the context of China, how long and sustained will that policy be things ed?
This is turned from being at first a Trump administration policy toward China to Abide administration policy toward China, and it's becoming clear now that this is the American policy toward China. There's a lot of bipartisan consensus from the US Congress as well, and not to mention many of our partners and allies across the world. So there has been tremendous volatility and uncertainty with regard to the political election, even.
Just over the past ten days.
But if you're a CEO of a tech company, the one thing that you can be certain of, the one thing that will be stable, is going to be American policy toward China when it comes to our own tech security and our economic competitiveness.
Is it the right policy, Michelle.
Well, let's start with the ultimate end goal, and the ultimate end goal is that the United States and our partners and allies across the world have to have competitiveness and superiority when it comes to technology, because whoever leads in technology is going to dictate the values and the standards and the regulations that oversee our militaries, our economies, the financial system, our culture, and the information space, and so the imperatives for the United States and our partners
and allies to lead in technology. That means we have to innovate faster, smarter, and better, and we have to make sure that our companies are not contributing to China's ability to beat us in technologies like artificial intelligence.
Michelle Nvidia, for example, is off session highs but up significantly this morning. There were reports that it's preparing a specific product that would be within the bounds of current restrictions. That seems such an interesting policy. How severe do you expect the reaction from the administration of the policy sides be if corporate it's elect to do that, just to adjust their product so that they're within codified rules.
Like this, this is sort of the new reality that we're in here in twenty twenty four and then through twenty forty four, which is that companies and governments have to be working closely together to ensure that companies are able to be competitive and ensure their business success at the same time that they're contributing to and not working
against US and allied national security. That's what tech diplomacy is, That's what the CROC Institute is focused on, and it really is a new requirement for this contested technological and geopolitical space. So we're seeing that push and pull between companies and governments, But the long term trajectory of this is that companies need to be acting in the national
security of the United States. There's a way to be competitive, there's a way to make money, and there's also a way to ensure that we're advancing national security.
So this is a and scenario, not.
A one or the other.
Michelle, you mentioned allies, and much of recent report has been focused on how the administration is going to lean on the Dutch, the Japanese. How will that differ between a Trump versus potential Harris.
Look In the previous administration, one of the things that the founders of the Croak Institute had focused on was building a historic clean network to secure five G that included sixty countries and two hundred telecommunications companies.
That worked together across.
All of our countries in order to secure five G and make sure that we are only using trusted vendors that ultimately stopped Huawei in its tracks from becoming the dominant global five G provider. That has continued in this administration and whatever the next administration and into the next twenty years. Really the imperative is for the US and all of our allies to.
Be working together.
And we had talked about chips at the very beginning. Here you see a lot of the same trajectory from our partners and allies when it comes to chip. The EU is focused on government subsidies to advance their chip self sufficiency. The same thing with Japan Korea. Many of our partners and allies are on the same path.
Michelle Geider, CEO of the Kark Institute for Tech Diplomacy, have heard you. We thank you so much this blombog Techology. Welcome back to bloembogo Techology. I'm Caroline Hyde in London and I'm.
Ed loved Loo in San Franciscoing Sure, as the sun rises and sets, Carro, there are financial markets to talk about, and then as.
Like one hundred coming off of it's highs.
At the moment, Ed, we're just up by seven tenths of a percent, best move since July.
The tenth. But look, we're in the green and that's not where.
We were last week, worst week that we had on the NASTAG. More broadly, since April, we're seeing CrowdStrike pulling to the downside almost thirteen percent actually now trading even more significantly than it did on Friday when we first learned of the outage that was sparked by an upgrade that went horribly wrong for CrowdStrike and eight and a half million device users. We keep an eye on that company.
We also keep an eye on digital assets now. Actually, we did see spike higher amid the political news and trying to digest ultimating what a Harris versus Trump, and indeed, if it does remain Kamala Harris leading and vuying for the nomination for the Democrats, what would that mean for crypto Actually, the crypto market is kind of thinking that it's better chances still for Trump, who is a pro
crypto candidate. We're up three and a half percent, but notably we're just a little bit on the downside today.
Let's take a look.
At who in the digital asset world might benefit the most from a potential second Donald Trump term in office and who might lose the most Let's break it little down blue Verhali Bassex here.
I mean there are.
Actually two layers to it, right that in the moment, the market kind of saying, well, we think Trump is the more likely outcome, but at the same time he's the more pro crypto candidate, and trying to make sense of that on an asset class that trades twenty four to seven has been quite a lot of fun for you.
Well since early June. You just think about the rise that bitcoin has seen after it was in an early summer slump. Remember you and I about a month or two ago, we're talking about how difficult it was for
this cryptocurrency to get out of that slump. But now we're in a position where, yes, on the hopes of a more friendly president here to the crypto industry, you have seen Bitcoin rise something to the tune of ten percent since when early kind of indications here of Biden losing some steam when you saw him address the public in different ways, and certainly even more so when he
stepped down from the nomination yesterday. But you also had, for example, the likes of many bitcoin minors surge even more than bitcoin itself, and a lot of people This is a really interesting one here too, because remember it's not just the presidential rhetoric that we're talking about here, it's also this idea that you may expect an approval of an ethereum filing this week and those ethereum spotytfs to trade as well. So yes, has Gary Gensler under
the Biden administration come down very hard on the crypto community. Absolutely, has it left an overhang on crypto related stocks, particularly exchanges. Also, has the Biden White House overturned bills, that bipartisan bill in particularly that would have changed the way crypto has accounted for. Also Yes, But then again you have seen also pivotal moments in the bitcoin industry and new record
highs under the Biden administration as well. So a little unclear here as to how much more pro crypto Trump would be than the Biden administration.
And of course whether or not it will be Harris who Harris would be accompanied by. But Shanani Molbroney, I mean, have we ever heard VP Harris speak particularly about crypto? Have we haven't sort of tried to Gana ultimately you've spoken to Mike Novelgrats and the like.
He really was pushing for this change of the god.
He was pushing for the change of the guard. But I think also just as interesting here, Caroline, is this idea that he wants to see a race. He is one of the billionaires that did speak to Bloomberg about the idea that she's going to have to win that ticket going into that Democratic National Convention.
In mid August.
He did not flat out say she should have it on day one, and so there is more support for Kamala Harris. And remember it's not that the Trump administration is all in on crypto as well. Remember Jake Clayton was Treasury sorry Security is an Exchange Commission chair under a Trump administration, and crypto did face some hurdles in that time as well.
If you remember, the other thing.
Under a Trump administration that would come under very significant concern is an idea of a central bank digital currency, this idea that the government itself could surveil payments in a broader way. So it's a nuanced view here, and there are still a lot of holdouts in the crypto community that don't say the Republican Party is the only one for crypto, though it is leaning that way of late.
Shanata basek always twenty four seven for us as well when it comes to crypto, we so appreciate it. Let's speak to someone who's deep within the crypto ecosystem about political change, but also that ETF that we're all llwing to go live this week might be she's with a CEO a bit go and you'll read on this ultimately whether there will be a sudden clearer path for regulation when it comes to crypto if we did have Trump, or indeed if we did.
Have Harris, Well, we're going to find out really soon, aren't we. Harris is a little bit unknown so far in terms of what her individual views are, but for the most part, I think she's probably going to echo what Biden has done. And while people are focused a lot on whether or not this is a party issue, I think what it's really about is who are the
heads of the various agencies. The regulators have tremendous power here, and I'm talking about you know, not just the SEC, but also the FDI C and the OCC and to a lesser extent, you know some of the I R S and the FTC. Obviously, Secretary of Treasury is huge.
So whoever's in those seats greatly dictates what happens. And let's be realistic here, Crypto, while a very important issue, is not the biggest issue for most political political minds, So you know they're going to be picking those seats based on other factors, and yet who they put into those positions can turn on or off crypto leg a light switch.
Mike, one of the voices quoted in the Bloomberg News Bitcoin rap talks about how if Trump is elected to office, theres an asset class crypto becomes more investible. Is that because of what you just said about regulators, that if Trump comes to office with a clear pro crypto stance, the rest of the market kind of follows suits.
Well, Trump has been very clear in certainly in the last six months now. You can go back to twenty nineteen and he had a different view, but you know, he's consistent now. And I think what's happened is he's actually learned the market has evolved by four years. We've got tremendous infrastructure that we did not have four years ago. So I think he is ready to help make you know, a crypto and avestable asset, and frankly, regardless of which
political side you're on. You know, digital assets crypto are about money for the people and about freedom of choice. Now, these are two virtues that both parties of spouse to
be in favor of. However, you know, some political leaders tend to lean more towards give the power to the banks, right, So I think there's a real challenge of there's a there's a fight going on behind the scenes for power, you know, kind of in the financial institution system, and are you going to give that to the banks or are you're going to actually open it up with freedom and let people decide. So Trump has definitely said the latter Biden put in people that were more in favor of,
you know, kind of the existing banking system. And that's the question that we have in front of us, is you know what's going to happen next.
I guess the joy of crypto markets is it trades twenty four to seven. And just like everyone else, I was looking at bitcoin over the weekend, is the political headlines here? Do you read much into the minute by minute move when a news event like this past weekend happens. Does the market tell you anything about popular sentiment?
It does?
I mean, you always have to take away a grain of salt. It's really hard to read the tea leaves and not a trader. I think some people put too much emphasis on small term, short short movements. But no, we do see pops, you know, when people are seeing a more positive outlook. And I think right now, you know, the Trump administration, if you were to come in clearly signals are more favorable approach to crypto, and we'll see
what happens if it's anything else. But you know, of course Biden and then Harris by kind of by proximity would also likely be putting in the same types of candidates and will probably look pretty negative for crypto.
Mike.
This weekend, we're anticipating Trump to speak at a big bitcoin conference over in Nashville, likely to be seeing some more money coming from the crypto ecosystem into his own coffers for fundraising.
What about the people you speak to about.
Whether they're going to be making money or donations to a Harris led Democratic Party.
Look, I've been a single issue voter. I think a lot of crypto people are, I mean BICCO. Where we stand in the ecosystem, I think actually our clients expect us to be this way, So we're really looking out for how do we make digitalized it's better. We do think it is systemically important for the United States to be competitive in financial markets that we have solid digital assets. So in general, Look, there's still a lot of momentum
behind Trump. Prior to Trump coming in and really declaring that, hey, this is an important issue.
For America's future.
You know, the current administration didn't seem to have any inkling that that was true at all and has been punitive on the good news side, Look, I don't think this is Republican versus Democrats. Seventy one Democrats voted for the FIT twenty one bill. I mean this is a bipartisan approach. So well, there's a few people in each party, maybe a little bit more in the Democratic Party, but
a few that don't like crypto. In general, this is good for America, it's good for people, it's good for freedom. Every politician should be standing up right now for bitcoin and digital assets.
You have to talk about Vance JD Vance. Then if you're going to talk about regulation, party versus party, do you have a clear sense of his attitude toward the cryptocurrency markets.
Well, good, good news, there is I mean his proximity to Silicon Valley, has you know, past relationships with founders Fund Peter thiel And and the others. He understands technology just a heck of a lot better than the octogenarians that have been running the show here in America for the last few years. So I think it's refreshing to have somebody from the younger generation. I mean, remember of the you know, millennial millionaires out there, one hundred percent of them own bitcoin.
So you know, if you.
Want to talk to the younger generation, they obviously want to have a conversation about bitcoin, and and I think jd Vance hits that a lot better than the than the elder folks do.
One idea in a Trump presidency from a regulatory standpoint, Mike, is to hand responsibility back to the States on a number of issues. I'm not saying that there is any certainty or even reporting that crypto would be caught into that basket, but do you see that being a point of tension a state bite state policy toward crit so currency markets and consumer adoption versus a sort of federal level.
Look, Look, partly, I think that'd be great. I've been saying, you know, We kind of have a Thomas Jefferson versus Alexander Hamilton thing going on right now when it comes to crypto, and you've got one for the Fed power on the Hamilton's side and the other one for the state's federation Jefferson. However, you know, America as a political
and economic system has a lot of federal ties. So even if you are a state chartered bank, remember you probably are carrying FDIC, which is the Federal Depository Insurance, right, So the federal insurance is very difficult and has definitely been told to lock out crypto. So whether you're a federally chartered institution through the OCC or a state chartered one, you're probably looking an FDIC and the Federal Reserve, the fd I C has tremendous power over all of those banks.
So anyway, I would I would like to see more competition across states to get all this stuff going. However, remember there's federal hooks everywhere.
Mike Belchi bitgo CEO and co founder, thank you. You're looking at live pictures from the White House. That is the championship teams of the National Collegiate Athletic Association gathering at the podium, we await Vice President Harris, who's due to deliver remarks very quickly. Go out to Washington, DC. Bloomberg's Kaylee lines and you know, we talked about it. They're the focus of policy, one candidate versus another.
And what Harris may or may not say.
Yeah, and I mean this will be the first introduction to Vice President Kamala Harris is not just the Vice president, but as a Democrat seeking the nomination just in a matter of weeks from now. This is her first official event since announcing that she does intend to win and earn that nomination.
This is going to be a very.
High profile for her, and I would point out this is not the only time that Harris will be at an event today. She just tweeted or posted on x that in this first full day of our campaign, in her words, she will be heading to Wilmington, Delaware to say hello to the staff in headquarters. She says, one
day down, one hundred and five to go. She says, together, we're going to win this, and we're going to hear her in just moments as she walks now onto the stage at the White House at this NCAA Sports Day event, of course, not something that was intended to be a campaign event, but given the events of the last twenty four hours, is very much becoming one. As we await the Vice president to give remarks after this first speaker.
Yeah, we do anticipate, and all to be said, I mean, when they are already signed up to make speeches, recauding sport, recording in a competition, how much do we think she really can jump in the future policy making that she's already thinking around, Well.
This isn't likely to be a speech that is going to outline everything that she would like to do politically as President Caroline. But of course, with only one hundred and five days until the election, in just a matter of weeks until the Democratic Convention in Chicago, which begins August nineteenth, she frankly cannot afford to miss any opportunity to plead her case as to why she should be elevated from Vice President of the United States to President
of the United States. And given that this is the first time she will be addressing cameras directly, not just putting out statements in the written form to announce her candidacy, to say that she doesn't tend to earn the Democratic nomination,
She's likely not going to go without saying that. But of course, because the event is not a campaign event, this is happening on the White House lawn as we speak, it is likely to not be as steeped in policy as that otherwise could have been, and many strategists have spoken with in the last twenty four hours suggests that Harris is probably between now in the convention beginning in mid August, going to have to do some kind of formal announcement of what her policy platform will be and
how it could be differentiated from Joe Biden, knowing that Republicans are already on the attack trying to tie her directly to the policies of this administration, given that she has served this administration as Vice president for the last three and a half years.
It's interesting as a technology show, we've obviously been trying to gone a the interest from social media users, whether they be in China, and it feels as though thus far the Chinese community and government doesn't see much of a tone shift coming from Biden passing a baton over to Kamala Harris in a view that indeed she would still be unlikely to beat out a Trump that seemingly also ringing out in the crypto marketers. We're just speaking
what about donors here at the moment. I know we spoke about it briefly, Kaylee, but has there been any new update about support coming from a monetary perspective.
Well, the donors continue to pour in.
Act Blue, which of course is an aggregator of democratic donations, had fifty million dollars raised from grassroot donors in just the seven hours after Biden's announcement. In Harris's subsequent announcement that she was seeking the nomination, are understanding is those are continuing to roll in and that figure is taking higher. We also have seen a number of high profile donors, including rereied Hoffman, of course well known to the technology industry,
who came out to endorse Harris. George Soros has done the same. Others, according to our reporting at Bloomberg, are still remaining on the sidelines for now, as many are not eager to see what could be an anointment, if you will, or an actual coronation of Harris without a full process here, but the Vice President is now at the podium, so let's listen to her words.
To support these extraordinary student athletes, and it is good to be here with so many leaders, including of course members of Congress, members of our administration, and are extraordinary athletes. Our President Joe Biden wanted to be here today. He is feeling much better and recovering fast, and he looks forward to getting back on the road. And I wanted to say a few words about our President. Joe Biden's legacy of accomplishment over the past three years is unmatched
in modern history. In one term, he has already yes, you may laugh, in one term, he has already surpassed the legacy of most presidents who have served two in office. And I first came to know President Biden through his son Bo. We work together as attorneys general in our states, and back then, Beau would often tell me stories about his dad. He would talk about the kind of father
and the kind of man that Joe Biden is. The qualities that Bau revered in his father are the same qualities that I have seen every day in our President. His honesty, his integrity, his commitment to his faith and his family, his big heart, and his love deep love of our country. And I am first hand witness that every day our President Joe Biden fights for the American people, and we are deeply, deeply grateful for his service to our nation.
And so with that on.
Behalf of our President and doctor Biden, I am honored to welcome all of you to the White House to celebrate the achievements of these great athletes. Every one of them is a national champion. A national champion in America, tens of millions of people play a sport as a child, and the best of the best grow up to become national champions. Here today we have seven undefeated teams, eleven
repeat champions, and twenty first time winners. Up about you all, Some of you have represented our nation on the internationals.
That was Vice President Kamala Harris speaking publicly for the first time since President Biden ended his reelection bid and endorsed Vice President Harris to be the Democratic nominee. Let's go back to be based Katie Lines in Washington, d C. I mean, I was listening intently to what Vice President Harris was saying. I think a lot of it was noted already in the statement she put out Sunday.
Your analysis, Kayley.
Yeah, interesting that she chose not to speak about her own qualifications to be president of the United States, now that she has declared that she does intend to earn the Democratic nomination, but instead to begin her remarks at the White House in her first official event since all of this went down yesterday, to talk about Joe Biden's legacy, describing him as having in one term, saying that the audience could clap for this, he has already surpassed the
legacy of most presidents who'd served two terms in office, talking about honesty and integrity and faith. Deeply grateful, she said, for his service to our nation. So she's not necessarily
making this about her today. She is talking about Joe Biden and the legacy he will leave behind, knowing that he is going to be a one term president in his decision not to seek re election, and even as he has suggested he would like to see the baton or the torch passed to her, she didn't take this moment, at least initially, to plead her own case and treat this like a campaign event. She moved right from talking about Joe Biden's legacy to commending the athletes who are
gathered on the stage behind her. It's an interesting choice and does suggest that perhaps she's going to save most of the campaigning for a later event. Again, I would remind you she just announced a few minutes ago that she will be heading Wilmington, Delaware later today to meet with the campaign headquarters there. As she notes, there's just one hundred and five days to go until the election, and then.
As and when President Biden is fully recovered able to be back in front of cameras, what do we expect the relationship to become like over the next few months.
Well, Joe Biden, in his statement announcing he wouldn't seek reelection yesterday, said that he does think it's in the best interest of the party in the nation to focus solely on continuing out the rest of his term and
his duties as president. To me, that does suggest that he may not be super active in the actual ongoing presidential campaign, But ultimately that's likely a decision that would be left to Kamala Harris or whoever is a top the Democratic ticket to what extent they want to attach themselves to Joe Biden and have Joe Biden campaigning on their behalf, knowing that there will be a Republican effort to tie Kamala Harris directly to the policies of the
Biden administration, suggests that she is essentially just a continuation of the same. You could see how she may want to distance herself a bit from that. It of course remains to be seen. Joe Biden just days ago, as we all know, was talking about returning to the campaign trail when he recovers from COVID this week, and all of a sudden his decision had very much changed, as he backed out suddenly yesterday. So we know that things
are evolving in real time. And it looks like the Vice President has just wrapped up her remarks without saying much about her candidacy whatsoever.
Maybe later in Wilmington. I know that you'll be ontel of that. Kaylie Nines, We thank you so much. Meanwhile, coming up, we get back to tech and what to expect from this week's earnings.
This is Brumbag Technology.
Let's look ahead to this week's tech earnings what to expect, starting with SAP today Germany, Spotify, Google, Tesla reporting tomorrow. Ran Dostellica is with us to run us through well whether we can live up to some valuations.
Ryan, Yes, absolutely, that's the key question. This quarter, a lot of Magnificent and seven companies are expected to deliver a deceleration in earnings. Earnings will still be pretty strong. Growth will still be pretty strong, but slower than we've seen in past quarters. And given how much these stocks have run up so far this year, even with the recent fultility we've seen in this sector, that's the key question. How much are these companies able to justify how much they've moved.
Up this year.
Tuesday gonna be big, Alphabet Tesla. Is there a calendar second quarter story across all of tech you're watching, Ryan.
I think the main issues are going to be how much of these companies going to continue spending on their AI initiatives and what kind of return on in investment are they seeing from these persitions. I think Alphabet's going to be particularly important with that, We're going to be watching how star of the cloud business is there, and then more Brawley, We're just going to be looking to see what the state of the digital advertising market looks like.
We already saw some of that from Netflix last week as they talked about their ad here, but I think for Alphabet and then Meta next week, those are going to be the key focuses. How much are they've seen from the benefit from AI, how much they spinning on it and will that be enough? Kind of justifies doctor that the Bold up pretty strongly.
This year, in particular in video Ryan, so great to get your perspective, Roan Vestelica, We appreciate it now. That does it for this edition of bluebour Technology. A lot of earnings to anticipate.
There for Ed you start the week with a presidential race, earnings and the biggest outage in history.
Makes for a good show for recapping on the podcast.
You know where to find it Terminal, Apple, Spotify, iHeart Caroline's in London this week I'm in San Francisco. It's an amazing week to tune in learn about what's going on in the world of technology. This is Bloomberg Technology
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