China's Covid Protests and Musk's Apple Feud

hates free speech, and another one bites the dust. Crypto lender block Fire has filed for bankruptcy in the aftermath of f t X, and the US government is among one of the key creditors. Will explain, but first head let's check in on those markets, because today was a day once again of Federal Reserve of Matt grow picture impacting the text dogs. We're seeing the SMP from hundreds off by one and a half percent, biggest sell off since November the ninth. Similar moves in terms of the

NAZAC off by one point six percent. Big tech rolls over as once again fed speaks seems to irk the market. Federal reserve. The leaders over at New York FED, for example, John Williams, or you're looking over at Jim Bullard over at St. Louis FED, both talking about the need for further rate hikes. Rates go higher, the dollar goes higher,

Crypto goes lower. Bitcoin, of course resets at this particular hour, but it has been trading lower versus the US dollar, and we're seeing that at sixteen thousand, two hundred and six down about two on the day of Monday today. It just resets and we're calling it flat. Let's move on to see what also was irking investors was also this dampening on sentiment about what is happening in China, the protests. What's interesting here, though, is that the Naza

Golden Dragon China actually rallid. Why why when you see unprecedented levels of protest versus Yjing Ping versus of course the concerns of a COVID lockdown. Well maybe just maybe the Chinese stocks being traded here in the US were upside ed because something that actually that will mean a movement towards the reopening of the economy. We're up two point eight. Yeah. E commerce are really big driver in

the markets. On individual names. I'm looking at Amazon, one of the through few stocks in the green on the NaSTA one on Monday, probably the biggest points gainer as well. There's optimism around the sales outlook from Black Friday going into Cyber Monday, which is ongoing. Of course, that stock

higher by around six tenths of one percent. Pindo do really interesting, really strong earnings from a Chinese e commerce giant on the lower end, the discount end having its best days since August, the stock trading at its highest level in a year. Again that story as well. Caroline probably a factor that what we're seeing play out in China might result in a policy change which would be

supportive for business and tech. Disney down three percent according to people listening into Bob Igner's first town hall, they're going to keep with it when it comes to the hiring freeze, and they're warning about a move from linear TV, saying activisions are stop. We' getting into later very quickly. Apple, We've got to talk about this stock, Caroline, because it's under pressure with what we're seeing play out in China

and the impact to production as well. Yeah, I look at that over the last couple of days, Apple down four and a half percent. You've been driving that story home, ed and let's dive into a little bit more, because well, it's been gripping the entire world, China's growing process against COVID curbs and a record number of infections complicating the nations path to reopening. Here's what some Bloomberg TV guests had to say about the sense of uncertainty just sweeping

through Chinese markets. As long as we're seeing the the ongoing COVID zero policy, we're not going to see um, you know, much of a stabilization in domestic demand unless the government really moves away from its targeted approach. At this point, it looks like that a rabbit or um a reckless opening of the economy will be worse for China's growth because the biggest problem now, of course, is

in the labor market. For the time being, it seems that our performance that we have seen in the Greater China region UM could be kept in the very near term. The next few months are clearly going to be challenging, but we still feel comfortable that in the second half, China is going to be a much better story from an investment perspective. Interestingly, the all that's doing well primarily because people can't travel. So we've seen seeing you know, a good spending and a good foot traffic in them

are a macro perspective there. Let's dig into the technology impact as well. Blue Makes Debbie over in Washington, and of course there be you cover in particular Fox. Can you cover in particular Taiwanese companies as well as Chinese and just talk to us about whether or not this is an unprecedented in nature and what it really means for business for the economy in China right now. So what we have seen is u this is becoming a

challenging situation for supply chin in China over world. White House set today that they don't see a major impact um supply Chinda. For more recent UH part protest aura undress in China over the weekend and in this instance, Foxang over the weekend actually is offering its sixteen staff a monthly bonus of as much as eighteen hundred UH yen to UH continue working for the company in Central

China throughout December and January. And that means South Foksang is working very hard to return workers to make sure that the Apple will have far enough iPhones to offer its customers to the holiday quarter, and our coholique in Asia have reported UH earlier this week that Apple is UH and Baksang are actually a facing illustration that they could face a short full of as many as six millionaire units of iPhone pros, the most sought after models of new iPhones this year due to a reason memorial

in it at the plant in central China. Debbie, do we have any sense of when things are going to normalize the Apple in terms of the production line you mentioned the six million unit short for I think the source also told Bloomberg that there was confidence they can make up ground in three uh. Yes, But at the same time, the situation remains fluids because we are not sure whether there's going to be a full of lockdowns in the region that could have an impact on this situation.

So another person familiar with the situation has told Boomberg that the existing workers affected by ongoing luckdowns are being able to return to work at the Faxangsa plant in central China is a major factor affecting a production as well. So I guess we just have to wait and see what happens over the next couple of weeks. Okay, Bloomberg, steady, Well, thank you very much. Let's continue the conversation now with Scott Muscovitz, Asia Pacific GEO political risk analyst for the

Decision Intelligence Company. Morning Console, And I guess the question we go to now is is this a flashpoint, Scott, or is this going to be an extended period of political social disruption in China in response to what is essentially policy right from the Chinese government. Yeah, thanks for

having me, Um. I think that's an excellent question. Uh, certainly, these protests are unprecedented there, unlike anything we've seen, the quickness with which they spiraled, in the fact that they are taking place across multiple cities, across multiple geographies, and that somehow people in one city seem to be aware of people in other cities were protesting, and we're you know,

drawing inspiration from each other. That is something that rarely see in China, where the state is normally so good at atomizing these things and sort of swooping them under the rug. This is going to be much harder to

put it back in the bottle, so to speak, Scott. Already, of course, many an international company has been worried about doing business in China, largely because of the COVID lockdowns, and also add that healthy dose of geo political tensions between for example, the U S and China antagonized in some way, perhaps over the course of the weekend the news that zt and and the likes of Huawei won't be able to sell their products into the US. How

does this affect, for example, U S China relations going forward. Well, I don't know how much bearing this has specifically on US channel relations, but US officials have to tread really carefully here because they want to show their support and they want to express their support for any sort of you know, free and open protest, especially one that might signal a greater desire even for democracy some people have

been talking about, which is very rare. But the second U S officials step in and start, you know, saying how much they support it, China can latch onto those sorts of narratives and start to spin it as this is something that you know was cooked up by the U S. Start going to this sort of conspiracy theory propaganda,

and so that's something they have to tread very lately. Um, not just because they don't want to, you know, make the progesters look bad, but also because that could also you know, really harm us channelations which are just starting to recover after the recent t did in meeting Scott earlier today, I spoke to the CFO of in Finian, a chip maker that has a significant operational and sales footprint in China. This is what he had to say

about the situation. We have really improved our resilience a lot over the over the past quarters, months and years, and therefore we are looking at with with concern. But up to now there is no direct implication visible on our operations in China or the region, and we have backup plans in case it becomes necessary to make adjustments. When I listened to Spend, he makes it seem like this is just the latest in a string of ongoing disruption. What is your assessment about the reality of life on

the ground and operating in China right now? Well, I don't get this. It's that everything has ground to the halt to a halt, But I do get the sense that we're in sort of a weight and see moment. It doesn't seem like they've been able to dispurse these crowds. They sort of missed the window on you know, censoring and isolating it right away. And even as they start to do that, people know that these protests are going on, and they you know, are aware people are showing up

with their blank pieces of paper. That's been the real prop of the protest um. Whether it's sort of grinding to a halt. We saw you talked about earlier those you know, protests in Jung Joe, but those were those were more isolated. I get the sense that these are more you know, urban middle class protests. We haven't seen so much labor protests outside of that. So it's a question, um.

But there's a lot of uncertainty, and we know that sometimes COVID lockdowns have been used almost politically, and so you know, anything is sort of on the table, really waiting to see how this will unfold. Now. I know, in some ways what has occurred at Fox con iPhone cities, it's known it's somewhat different to what's happening now on the streets of Beijing or Shanghai. But they all really

it did. And a lot of this is frustration about the way in which people survive amid these COVID lockdown Scott. Many have been looking at Apple in this situation. Of course, key supply of being that a fox gone, their exposure being significant, that they just didn't build enough alternatives, They didn't focus enough. They were too heavily dependent as a supply chain on China and didn't do much to to

really disperse that. Do you think companies are now significantly moving away from a Chinese supply chain or they look to just think that this is an episode. Oh, I think you're absolutely right, and I think it predates this. I think it was over the summer. Uh, you know, after how speaker Pelosity visited Taiwan and there was that

deeply jinguistic military reaction. People got really stooped and they started for the first time to envision a future where China might become for a lot of multinational companies geo politically off limits. And they all started to scramble and started, I think, wow, we need to look at serious contingency planning. And things only seem to get worse from there. That's what we saw on our data. Um, you know, relations

seem to get worse and worse. Bilateral negativity only got worse, and then it just really did seem to be affecting both China and the US. People were concerned. She and Biden met. It seemed to calm temperatures, not change anything. But really I could a four under relations and this happens, you know, right, Scott. We asked our audience what's top of mind for them and concerned about what's happening on the ground, specifically with Apple. Their answer very clear, working conditions.

My question to you those working conditions, what we've seen on the streets. Do we see a policy pivot from the Chinese government. Yeah. I think one thing is that the government is sometimes more responsive than people realizing China because they don't have the release valve of elections like we have, So they're going to have to move in order to well dissent. But they have to be very careful because you know, if they open up too quickly,

then it could really emboldened and enable these protests. So I think they're going to tread lately. But I don't see anything really terrible happening just yet. But we're waiting. It could be a victory for the broadesters. You don't know, there might be smart movements, you know, Okay, Scott Scott Musk of b It's Asia specific GEO political risk analyst

for Morning Consult, Thank you. Let's stick with Apple, the company and it's CEO being called out by Elon Musk, who claims Apple has cut back its advertising on Twitter and even threatened to withhold the social network from its app store. Musk tweeting quote, do they hate free speech in America? Question, then posting again, this time including the Twitter account of Apple Chief executive Officer Tim Cook. No response from Tim Cook on Twitter. Will have more on

that story later in the hour and coming up. Activision Blizzard is gaining some fans while some analysts are raising their recommendation despite concerns over Microsoft steel for a takeover the Cisplinberg. So Activision Blizzard has gained fans on Wall Street as a florry of analysts raised their recommendations on the stock, even as microsoft planned acquisition looks more and more.

Dicey joining us now as being a Bloomberg's m and a reporter eachen Sen and Echun just talk to us about what you're reporting, showing first and foremost one of the odds that this deal actually goes through. Sure, Yeah, so I will say, I'm hearing from murder arch traders as they see the deal probably is having only roughly forty to fifty percent of going through, so it's pretty dicey.

But it's interesting that we are seeing among the Wall Street analysts there brustings here reading on the active Exhibition the start itself mainly for two reasons I would say, first it's a strong fundamental value and second is it's a very attractive root forward profile given the Microsoft situation. Because remember Exhibition is in the process as of being acquired by Microsoft for sixty nine billions. That's a huge deal. Right.

But there was a report last week saying that the FTC, which as the u S regulator, is going to block and challenge the transaction. The sort the starts tumbled, right, but the endless points as they see, and they like the stock whist or without Microsoft transaction because their case has been as a stalear loan company active mission, it has strong fundamental, very solid growth outlook and its franchise

including call of duty. Right, and they will get three billion break on fee to add on the balance sheet, right if the deal force apart. But on the flip side, if you know it goes through, then look at where the start is treating. It's like twenty percent below the takeover offer. So that's a huge upside to capture in that scenario. Ch And you've taught me so much about

the twists and turns of deal making, you know. You and I followed the Twitter deal so closely for months for examp and Pool and the thing you taught me throughout that process not just to crunch the numbers from the murder ofs, but it's to look out for key inflection points, key decisions. So what's the big key decision or key moment we're looking for between Activision and Microsoft? Right? So I would say anti trust, anti trust progress has

always been the focus. So Right now is waiting on the approval from FTC, but also it's facing the probe

under u k C, m A and European Commission. So regulators have raised a concern you or if they're still combining the numbers three and number five largest player in the industry, will give Microsoft, you know, too much of advantage in a space, or if they well with whole popular titles against their competitors, and I will say another thing to watch, it's just more broadly um FTC or the buider administration has been helped this very aggressive narratives

around big players all years of you know when it comes to antitrust issue. So that's particular of putting this mega tag deal under the spotline. What's interesting though today are great colleagues of Breenberg Intelligence put out a piece Jennifer for example, talking about how actually Microsoft snow uh new one trippony when it comes to M and A. They've been on this rodeo before and quite often they make concessions. Are we likely to see that when the

obs are talking about this right right? I think that's definitely something people are watching, and people are watching. The next catalyst is UM. When FTC going to job um their final decision on a case on this deal. So I think media reports say that could come, you know, either later next month or earlier next year. So it will depend on if they offer so on the mergial

party side, if they offer some behavior remedy. But if you know, the regulator accepts that, and if there's actually FTC decided to block the deal, then Microstofts do have the option too. It could appeal the case in the court and remembers there's a similar case between United House and chance Housecare Right. They got challenged from the o J, but eventually win the costs approval on it so that they are eventually close out. Okay, thanks to Bloom Bang Bloom Bags sen two and a half years ago, we

lost eighty percent of our business. We laid off employees, and I said at that time that we are going to be now prepared for anything to come. We don't need to lay off half the workforce to achieve the efficiency levels that we want to achieve. We did announce a small restructuring. Ours is really about rebalancing the number of head count we had at the beginning of the year we had tonight. We're gonna have the same number of heads at the end of the year. We are

not stepping on the brakes. In fact, we're stepping on the gas. We are still hiring. We're not freezing, we're not cutting, We're growing. That's what some of the biggest tech ceo has had to say about their own strategies surrounding layoffs, and in today's Talking Tech, we're taking a look at those companies that are not well so optimistic. In Mexico used cars startup Cavac is the latest global

tech name to cut jobs. Latin America's biggest startup is reducing headcount and firing managers due to higher interest rates and a slowing economy. That's according to a memo from the Unicorns CEO seen by Bloomberg News Now last week, HP said it would cut as many as six thousand jobs over the next three years, joining names like Amazon and Cisco who also planned layoffs right now. Employment historically

strong globally. The jobless rate was at four point four percent in September across major developed economies, according to the o e c D. That's the lowest level since the nineteen eighties. But this time around, tech already has staffing numbers way above pre pandemic levels. Layoffs have already begune, so the sectors bray sing for more cuts to come. That's talking to really great global perspective. Let's get a little bit more global right now. Another story that's keeping

our attention. The main privacy watchdog for Meta in the European Union has fined Facebook's parent company to want seventy seven million dollars from a massive data breach. Now Matter was penalized for failing to prevent the leak of the personal data of more than half a billion users. The fine was imposed by the Irish Data Protection Commission. Meanwhile, coming up, what retail data can reveal about the state of the supply chain in this holiday shopping season. All

these insights and more. Next some Ari Trasda. He's the CEO and founder of the open data supply chain company. Chris this is Bloomberg. I think this intentionality actually is incredibly indicative of the state of the consumer. Consumers are really looking for a value right now. They're looking for quality. They want to buy from their favorite brands, but they want a good deal from their favorite brands, and they're willing to wait, whether it's Cyber Black Friday or ceremony

to buy that. But that's part of it. The second piece of it. You mentioned this Alex in your in your opening, you talked about omni channel. This idea that consumers want to buy whatever in whatever means that is most communitied for them, whether that's online or offline on social media. That is now steady state. When you add that to direct to consumer as a business model, which really connects the merchant and the consumer directly. I think

that's the current state of retail and it's exciting. Welcome back to Blue Big Technology. I'm Caroline Hide in New York. That was Shopify president Harley Finkst on Blue Bag Television a little earlier today. And you're taking a closer look at Shopify and other retailers post Black Friday. Just give us the big picture. Was it good? Yeah? Yeah, well, I mean the market seems to think it's been okay so far. Shopify gave some prelim numbers for Black Black Friday.

The street seems bullish on those prelim numbers. There is evidence that the consumer is taking advantage of those deals. Some of the stocks that we've been watching are the names that in that econor space. Amazon had a good start Monday's session kind of fell away, but Shopify and outperformer. A lot of names on the cell side jumping on the early data coming out of them. Wayfair, another one

Peloton interesting. According to Adobe Analytics, it really was a fit at home fitness equipment that did well at one point up eight point eight percent, but really paired those games to close up eight tenths and one percent. Adobe Analytics data is where I want to go. Actually, this is a third party measure of how things are going in this holiday shopping season. For me, the psychology about when which they carryed you get out your laptop or

go on your smartphone and buy something. And according to the data from Adobe Analytics, it's very much cyber Monday. That is when across that holiday shopping period as an individual day, they expect eleven point two billion dollars to be spent. You look for example of Thanksgiving days comparison Black Friday as a comparison, it seems like consumers eat a few days to get over their Turkey trip and get out there online to buy some deals. Now this year related to other is let's look at two and

where we're headed. We do expect growth across that holiday season e commerce spending in the United States. We're on track for billion dollars. That represents two point five percent game on the holiday season here in the United States. But I find that fascinating carry because it's still growth at a time where we're really worried about a slowdown in the economy. We're worried about the strength of the consumer.

And what I'm reading in the data is actually discounting and deals seems to be doing the trick, albeit not in the same way it's done in previous years. Is

it inflation adjusted? That's my key question. Let's put it to our transdell at a great setup, and we've now got the CEO and founder of christ with Us who can enlighten us as to the supply chain data the platform that he brings for brands, for distributors, for retailers, you really give them an inside track on what's happening in terms of their own supply chain how to make a more efficientary. But just go back to that data. The growth are we seeing on an inflation adjusted basis

growth in terms of spending? Does it look healthy? It looks healthier, but I think it was. At the same time, have a lot of supply chain challenges still looming, so you're seeing it's kind of a paradox because you're seeing on one hand, you're seeing that retailers are reporting that they have too much inventory and at the same time

they're reporting that they're out of stock. Um So retail is highly seasonal, as you know, and retailers are still struggling with getting the last season and the season before that sold, and at the same time they have a lot of supply chain challenges getting the seasonal products in

for for this upcoming upcoming period. Aria hear you a lot on the supply chain challenge side, and when we talk about supply chains for Caroline and I over the last eighteen months, that's meant difficulty in moving goods from A to B. But the other issue we hear about is inventories. What roller inventories playing for some of these online retailers this holiday season. Yeah, they it's the same, it's the same challenge. Really, you kind of have a very long supply chain to get get get get the

inventory to the consumer. So you have retailers, you have distributors, wholesalers, your manufacturers, imports, exporters, etcetera. And it takes a very long time for this inventory to actually get through this entire supply chain. So the numbers that we've got a few days ago here is that of the retailers say that they have too much inventory, and at the same time, the eight percent say that they're already starting to run

out of inventory for key items. So historically it's been very easy to plan, a much easier to plan, but everything that's going on now with with with the inflation, consumer change, a huge shift to to to online for instance, it's made it really hard to plan because of very long lead times in the supply chains. So so that makes it hard when everything is not real time. Sorry, I'm going to ask you to talk your book here so it don't go too much when you're talking about it.

But let's think about the companies that have managed them interventories pretty well. Macy's is one of them. And actually, again, this is a company that's invested a lot in technology, in the ability to ensure that they've got the right thing in the right time and be able to be a bit swifter about getting the things that are going to sell in the door. Talk to us about how your technology is perhaps helping alleviate some of the supply

chain headaches that have been such an hallmark. And basically every e commerce and what bricks and mortar store at the moment, right yeah, before the pandemic, everybody thought we could push button today and tomorrow the the product would show up, and in reality you really need them to premendous amount of data between the different trading partners. So where we started in food, food that there are over ten million companies involved in getting food from where it's

produced to where it's consumed. But the technology that actually is connecting all of this is based upon something was invented in three year I was portnant, which is called d I and it's very reactive in terms of curtures orders that go through the whole supply chain. So everybody's with the supply chain need to have reused time data to understand what consumers are doing, what the prices, how

much inventory exists. So everybody through the whole supply chain can have used time data and then we avoid these huge overstocks that we've seen and also the shortages. That's interesting to me because you're talking about the company controlling what it can control, but how do you control the consumer. We went into this period knowing that promotions would be key. We knew that they would be greater than last year. I think the data shows US promotions were greater than

last year. What's your analysis of the role that discounts played for the online retailers. I think this kind of something incredively important, but I think very often blunt instruments are used when you can have surgical precision instead and uh, in order to do surgical precision, you really need to understand what store is the product selling in, what's price point, how inflation sensitive is that particular area, So the discounting

can be much more precise in a way. Some care more about about price and others, but you have to have really granular data now to the skew and to the store level, and also understand inventory levels and pricing and what competitors are doing. So I thinks, see, historically we've seen a lot of kind of plant instruments being used and you can have for a very little affordable price. You can use surgical data instead to to optimize it.

To us about how that really works, and say you realize that a lot more shop is wanting a particular item in Brooklyn, Visa VI, what's happening in Minnesota? And you can therefore have a cheaper price point. But with the e commerce being so prevalent, the fact that I can while I'm in the store pick up my phone and decide whether this is the price point I want to pay out, whether I can wait a couple of days and get it cheaper, how do you manage that

amount of data the consumer has? Yeah, no, you have to put together all of the consumer data. There, data that the retailer have, the distributor have, and the whole supply chain in one kind of north star. In terms of data understanding, very many just look at their own data, but they are part of a big ecosystem of of of companies that all need need the data. So that the sharing of data cross companies was something that didn't happen as much before the pandemic, but kind of operated

in their own silo. But now people see that sharing data matters a lot because then the manufacturer can be ahead of it. They can when build their products and they can get the products out in in time. Now the returns about tremendous amount of products sitting that was for the last last season, So getting there in time, that's when that's that's incredibly important. It's novembery give us the rich steal outlook for the rest of the holiday season,

which seems to go on indefinitely. That's always Aliday season, the season in retail, which is which is incredible. So I I think we're gonna Scostico see continued spend in in two four six seven eight percent increase in spending two four. I still think we're gonna see a lot of price reductions UM, and we're going to see a lot of shortage, shortage of products. I think a lot of people are gonna realize that the supply chain crisis are are not over UM and that is going to

continue kind of to ripple through the supply chain. All Right, our h Hostile CEO and founder of Chris thank you. We see the same confidence and the full confidence in point based that we've seen previously, and we do not

see anybody leaving the space. And that said, given that Inmia and when I mean in Meda, I not only mean the European Union with the MIKA regular but also the Financial Services and Markets build a passing through the UK Parliament at the moment, as well as the creation of the VARA, the Virtual Asset Regulatory Authority in Dubai is really leading the charge in creating regulatory clarity and

a regulatory framework that we can work within. Daniel see for their m e a, Vice President managing director of coin Base. Now let's talk about confidence more broadly in the space, particularly after today's perhaps inevitable news the block fires finally had to file for bankruptcy joining us now has been in motion basa, can I say finally because it was anticipated because the White Knight had been the

now bankrupt FTX for them previously. We have been expecting a filing and reporting now for at least a week here that this would be expected at some point, and now we have some details and what do we have from them? We have not just the plan to file for bankruptcy in New Jersey, we have some details about the scope of how big this bankruptcy proceeding is going to be. So one billion to ten million dollars in assets is the general size of black quite a large size,

but more than a hundred thousand creditors. We would have to keep an eye on future filings to see how many that will ultimately be. Remember f t X also had checked that last box on their filing and found out later that was about a million people at play here that we're talking about. We also know that the concentration is different among the unsecured creditor group. So what

is that exactly? It's more than seven hundred million that is really highlighted here earmark to the trustee of different depositors f t X itself, which we'll talk a little more about it now. And then also you have the sec from the remainder of them before exactly. So there are a lot of names that you don't have here similar to f t X. But you know that those amounts are kind of isolated here between one million and

thirty million dollars. So you might see more contagion there among the people that they're owed money too, because you don't know what they'll get back yet, but we know that that is the general size of per per customer per creditor that has owed money and how much generally

their own. There's a question of chronology and timeline because it's clear Block five had issues before f t x is collapse, but at the same time f t x is collapse seems to have made things worse for Block fi um if you follow that sonale, what is the relationship now between the two? The claim here on the bankruptcy filing is about two seventy five million dollars for f t X earmarked. There's some really interesting unanswered questions here. Ed if you look at the testimony by an advisor here,

you had seen that they didn't get money. They didn't get all the money that they had asked for from f t X to begin with, according to the Block five filings. Now remember to your points, some of these issues started before f t X. That's why f t X got involved in the first place. They were related to three Arrows in ft x is filing. I would also point out that apparently the US business of f t X lent money to block FI in part through

that ft t token. And so my question here is this entire agreement, who owes who what and who is responsible for actually paying each other back after this kind of tight web that needed knitted after the three Arrows debacle, I think is interesting. Now, remember blockedby is also said that getting money back from f t X might take time give an f t x is own bankruptcy. So

things are certainly complicated between the two Shinali. Over the weekend, it looked as though much of crypto twittersho decided to up sticks and leave to the Bahamas at some point into their own digging in some way, shape or form. That is, because of the different jurisdictions with which ft X has been enveloped the same thing he will block five bit. Obviously, Chapter eleven isn't as a protection here in the US, but it wasn't just based in the US.

I spent an inordinate amount of time with Bankruptcy US today for that reason because it to that end they had many people that win shine truly in this case, I will tell you just how much. In a moment, for Block five, they file the petition with the Bermuda and Supreme Court here so that they would have provisional

liquidators in both regions. Now, remember from Bahamas point of view for f t X, there is a lot of dispute that has occurred since the bankruptcy proceedings have begune and to the point that you even have the Attorney General saying that some of the words that have come from the new f t X EO are regrettable. So to the extent that the Bermuda government in the US stay in line in this bankruptcy filing. Again, they want to recoup money for their customers, for their own people.

And at the end of the day, what it seems like from the statements we're seeing from the Bahamas is also redefined the credibility of every single jurisdictions financial system and ability to embrace crypto still but have tight rules around the industry such that people don't lose their funds. We go to go shnati, but you teased us how much of the bankrupcy loise million dollars? So right for some, we thank you so much. She's going to go back

to those bankrupcy to is now. Meanwhile, coming up, Elon Musk picks a fight with Apple. I'll tell you why next. This is black So today Elon Musk has once again been going viral on his own platform and others. This time he's stirring a fight with none other than Apple. Now. Mask says Apple has halted most of its advertising on Twitter and asked the company quote if they hate free speech in America. He even appealed directly to Apple CEO,

asking what's going on here? Tim Cook. He also went on to accuse the company threatening to remove the platform from its app store. He did said not say why though, And now this will comes as many companies have halted spending.

We know on it and make concerns about your mass content moderation plans for the site watch dogs site and fact medium Matters reported last week that half of Twitter's top advertisers had pulled their advertising on Twitter after concerns about the direction of Twitter Look Forward Jeep among them. Elon Musk, meanwhile, has been blaming activists for pressuring advertisers and has talked about Twitter seeing a massive drop in

revenue already. He said in the past that he wants to make money for Twitter by turning it into a paid subscription service, with a relaunch of its paid verified services due Friday, of course, but for now, the vast majority of Twitter's revenue still comes from advertising. Ed Now, let's stick with this story, bringing Bloomberg's Kurt Wagner, a social media reporter, for more. I mean, Kurt, there's a lot to unpick here. What happens if Apple took Twitter

off the app store. I guess that's the place to start, sure, I mean, that's a pretty dramatic outcome, right, Like this would be that Twitter is routinely, uh, you know, allowing terrible content on the plan from usually Apple reserves this for you know, Gregis violations, and so if this worted to be the case, of course, that's a huge blow

to Twitter. Right. The app store is is probably the main way, or one of the main ways that most of its users get the app get app updates, so you know, for example, I believe the app would still work on my phone, but in order to you know, get an updated version I have an iPhone, I might have to you know, figure out a way to download that from the web. It's the kind of thing that's going to erode over time and cause a lot of people to either stop using Twitter or or you know,

possibly have to move to a different device. And so that's a huge issue. And one of the reasons I tweeted that I think Twitter needs Apple a lot more than Apple needs Twitter here, and that's because Apple has the distribution that it's at its fingertips. And actually I was pretty surprised that Apple was one of the biggest advertisers with Twitter cut. Meanwhile, cryptic sort of war almost he's declared on Apple continues and talk to us about

what he means by a free sprint speech suppression. He says, he said in a tweet, well, the Twitter falls on free speech. This suppression will soon be published on the social media platform. What does he mean was he going to declare on that? Well, we don't know, but he's certainly kind of piquing our interest, right He's saying, hey, look now that I'm inside the building now that I've had time to figure out, you know, what's been going

on in the code or behind the scenes. Uh, you know, I'm going to kind of unveil what Twitter has been hiding from you this whole time, right and and presumably, um, the way I'm reading that is that means he's going to come out and say, you know, here are the types of tweets that maybe we're down ranked in the algorithm, or here's the types of accounts that had been removed that maybe you didn't know about. Again, this is speculation, right,

because he's intentionally sort of building this drama there. But again, you know, what he has tried to say all along is that he is this free speech uh kind of evangelist, and he's gonna come in and he's going to make Twitter the free speech version of the service that people wanted to be. That it has not been be as it has you know, rules around what you can and cannot say. We know the new look verification systems coming Friday,

what has must said? What are the details? Yeah, well you mentioned and I think we talked about this and actually on spaces on Friday when we were there, that there's going to be a series of different colored badges, right, at least that's the plan for now, and I'm I'm going to forget the colors off the top of my head. But presumably you know, uh, you might have one color

if you are an elected official. You might have another color if you are a brand, or if you're running kind of an account that's representing you know, a company versus an individual person. Right, And so this is actually not a new idea. This is something that folks have inside Twitter have kicked around for a long time before Elon showed up, this idea that maybe there should be different kind of labels for different accounts, including one for bots.

Believe it or not, there was an idea that, you know, maybe bots should exist on Twitter, but they should be labeled as bots that you know, you're interacting with a kind of an automated account. So, as you know, Ed and Caroline, this plan for verification has changed almost daily from the last couple of weeks. So we'll see what it looks like when we actually see it live. But as of now, you know, it seems to be that you're starting to get a little bit more strategic around

um instead of everyone gets the blue check. There's going to be different variations of that green, gold, blue. We wait to see what the rainbow is going to be. Like, Kurt Wagner, so great that you join us on spaces. That was a nice little tea. You've gotta come and join us on Friday, Twitter Spaces and indeed then digging a little bit more on what's happening. I'm sure there's going to be plenty to discuss come Friday. It's only Monday, Kurt.

We're gonna let you get back to your day job, which is tracking what the cryptic tweet doesn't even mean, but and it really is a story that continues to unfold. And the fact that you know, Musque, Yes, the wealthiest individual is taking on Apple and almost retweeting out there what some of the videos the Epic Games made about Apple's business practices. It really does feel like he's going for them. It's gold check for companies, great check for government,

and blue for individuals. By the way, Carrot, that does it for this edition of Bloomberg Technology. Make sure to join us again tomorrow. AWS c O Adams Litski joins us as Amazon kicks off it's annual cloud conference. You don't want to miss it. This Carrow is Bloomberg