Netflix Earnings Preview and Ye Buys Parler

fall even after earnings beats the turnaround today? Of course, plus Kanye West or years is now known by the social media platform that is embraced by conservatives who departed

Twitter over allegations of political censorship. We're talking with the CEO of Parlor about the deal and Texas needs more details from ft X and Sam mcmun Freed's deal to buy Voyages assets will have more on the investigation into the cryptomogil First and foremost, let's have a talk a little bit more about well the on again, off again, risk on, risk off sort of violent moves we see in the market and whether any of the valuations are

currently at a buying opportunity. Dan morganam piece to say is with us Sonova's trust portfolio manager Dan, before we get into the integrity of the earnings and what you expect just at these levels the whipsawing we do see day in day out. Are you ultimately thinking that the erosion in value does mean that we're some sort of buying point in growth stocks, Well, Caroly, I don't know if we can put the flag in the sand and saying we're a buying point, but just kind of reiterate

where you're talking about earlier. I mean, going into this upcoming third quarter, the consensus right now is calling for the overall technology sector to drop and earnings by about seven percent. The semiconductors, which we've talked about before with and Video and Micron last couple of weeks, that's expect to drop fourteen percent. So I think the expectations are so low that if they get any growth out of any of the fang stocks, including Netflix, even as top

line growth, I think people would be pretty happy. So but I still think we've got to work through these FED increases before we can draw the line the sand and say Okay, here's the inflection point we can move on and start feeling really positive about tech. Interesting, So sort of the macro dictates the micro at the moment, but talk to us about the micro took to us that's informast about Netflix and kicks off. What are you expecting any sort of steer on on resilience from the

consumer right now? We have to bear in mind, Caroline, the Netflix has reported two consecutive quarters of negative subscriber growth. Coming into this quarter, we're looking for a little over a million new subscribers. We know they're talking about going to a new platform in terms of advertising revenue. How's that going to affect them? They've been working on their

password sharing issues. I think the big bogey Caroline, will be honest with the going this quarter on Netflix is do you know what consensus is for the fourth quarter? Looking for war million new subscribers? To me, that seems

a little bit high. Yeah, yeah, notable that we're still being very British perhaps so there's news advertising models and they're like, I'm interested in what you think of of Tesla, which of course in many ways is so retail dictated and has been very prone to just being moved as

a stock on sentiment. But what do you like to see in terms of a steer on growth on a particularly as we see the more competition come in Mercedes for example, the news there today, Caroline, we don't follow Tesla unfortunately because it is an auto stock, it doesn't fit in our bracket in terms of technology. So I really unfortunately, I don't want have much to add. Apologies for that been a bit of a misfi fire and steer.

Thank you for bearing with me. Let's talk a little bit though about where you are go and me guiding a like IBM, for example, this is a company that has been relatively equisitive, relatively in growth mode. But are you likely to see the corporate side of demands stay resolute, yeah, Caroline. So it's interesting because they had a pretty good number on the last quarter of their second quarter. Coming into this third quarter, there are concerns about how wage growth

is going to impact their consulting business. They're expected to take on about an eight percentage point uh negative impact from from currency um But if you look at their model, it's kind of interesting because they generate about seventy their business from software and consulting, and about fifty of their revenues are reoccurring, so they are very high cash flow.

Stock would be something your listeners could look at. The dividend is over five pent um and it's only down thirteen percent year to date, where the SMP is down twenty five. So look at IBM. A is a value stock with very good cash flow. What has been so interesting is over the last couple of earning seasons, Snap has almost dictated sentiment, leading them into the matters, into the other Googles and the likes that are focused on advertising as a model. We've seen them become a sort

of bell weather. Are you expecting them to be that this week? And to the upside of the town side where you're right, Caroline. Last quarter they came out and a acted trading with Twitter, with Google, with Amazon. Everybody followed them Meta. We have to remember in the second quarter revenues room only up thirty percent, and they guided for third quarter revenues to be flat. But since then things have improved a little bit. They're actually looking for

revenues to grow six percent. They've had challenges, as you know, Caroline, in terms of the change in privacy with Apple. Uh. They've also had competitive issues with TikTok. But you're right, Caroline, their company that's going to dictate what happens with Alphabet Twitter and Meta in terms of advertising revenue online and how that health of that business is going. And of

course you have Twitter exposure as well. Is Twitter going to be anything about the story of M and A or are you're actually going to be really focused on fundamentals, Caroline. Twitter is a tough company because they don't seem to ever grow their subscriber base. It's been very flat. You've got all the hype about Elon Musk wanting to buy the company and change it around, but if you look at their core growth trajectory, it's been very benign compared to let's say a Snap or a Meta or an

Alphabet over let's say the last five years. So they still have a lot of challenges, not only in the overall ad spend market, which is expected slow this year, only at about six from thirty six percent last year, but they have issues in terms of how they're structured. Their average user of time is only about forty five seconds or about two minutes, compared to Facebook or Meta that was thirty minutes. To give you an idea of how long people stay on it and actually look at it,

it's usually a quick interchange. So that's another challenge. For Twitter going forward. So it's gonna be a tough quarter I would expect for them. Um, we want to thank you so much for giving us your expertise, your years of experience and managing money and getting into the right stocks and nervous trust a force Port Phonio manager there, We thank him. Yeah, formerly known as Kanye West has

a green need to buy Parlor. Of course, that's a social media platform that it's been embraced by conservatives who perhaps have left Twitter over allegations of political censorship. Parliament Technology CEO that's a parent company, Odd Parlor is George Farmer. He oversees currently the happenings joining us now for the future under Yeah, first and foremost, what does he bring you because you're still gonna be doing the underlying technology if I'm right, So what does he bring in leadership?

In ownership? Yeah? Well thanks Caroline voving me on. I think it brings a vision to the platform that as

much needed. You've seen the rise of personalities surrounding social media apps, whether it be Elon Musk and Twitter or Donald Trump and truth Social I think that Parlor very much looks to a charismatic leader, and I think that we're in year, we have one who is going to take the platform forward in terms of vision and direction, both creatively from a marketing perspective, from an outreach perspective. I think he's going to bring a lot of necessary

talent to the platform. We're excited to work with him. Um and of course it puts us back on the map, which is, you know, something that we've long aspired to be back on. Were you worried about not being on the map, had you been losing members or users? Well, I think it's fair to say that the competitive landscape

has become a lot more competitive. When Parlia was founded in it really was the only kind of what I quote sort of free speeches of business social media app around And of course in the intervening forward to five years, that landscape has become that much a bit more competitive.

It needs the leadership of a charismatic personality, you know, much as I like to complement myself as sort of being a charismatic leader, it's it's just a different game when it comes to outreach and presence in existing in existing social media app So you know, kran Years obviously

is presence on Instagram and Twitter is enormous. His outreaches is global and as a result, this puts us into a position where he can help acceller at the brand growth and he can grow the platform into something that he wants it to be as well as as well as compliment our existing technology infrastructure. What does he think the platform and the brand currently is? How long has he been a user? How old did this all unfold? Well,

it came about quite quickly. I would say the deal really took shape in the last couple of weeks, um. And the reason being is because obviously he himself has fallen victim to the cancel culture narrative which deep platformed him from Twitter and Instagram. Um. He he has been a he has been a proponent of free speech for

a very long time. But I think that the scales kind of fell from his eyes in regards to big tech censorship in the last in the last couple of weeks, And that was really when the conversation began in earnest And really the deal took shape in about the last week. And you know, we're putting together obviously the final touches. We haven't yet concluded the deal. As I mentioned in the press release, it should be concluded in Q. Four.

But we were queen keen to get this statement out to give a statement of intent of whether the plat forms going. I'm interested. Of course he has been de platformed because of accusations of anti Semitic posts. How do you ensure that you have the right line of what's free speech and what's hate speech? Sure so, I I think philosophically, I take that back to a slightly higher question, which is who is in the position to make that decision? Um?

And my question always in response to that is if I'm making the decision, then what right do I have to make the decision. Parlor has community guidelines which outlie which outlaws on the platform pornography, financial dogs, seeing gore, and violence, and of course those are stripped from the platform when they're put up, and we also have a very rigorous spot determinant which removes thoughts from the platform

as well. Beyond that, of course, Parlor is a free speech side, and we believe in maximum allowable free speech. We believe in various studies which have proven that more speech actually he cures bad speech in some ways. So to show to show a bad idea a good idea is the best way to cure the bad idea in terms, and that's kind of what we believe in terms of ideas of this deal. It's been noted by many that your wife, Candace Owens is in some way, you know,

than someone who has been helping see well. Certainly Kanye West himself came to her movie, has been talking about some of the things she's shown a light on my I'm interested as to how much she had played a part and role in the in the deal in some way. I mean, my wife is an integral part of my life. Be difficult to divorce everything that we do from each other. Um. Look, I mean we we're a team. And for sure, she obviously has a relationship with Kanye. They talked very extensively

about culture. You know, she's deep in the trenches on various cultural aspects, including of course fine to his fashion show Harris a couple of weeks ago. Um. And so you know, I wouldn't have had my introduction to to year if it wasn't for her. Um. You know, the negotiation of the deal itself, of course, is completely left to me, and you know, I'm I'm more of that aspect of our life. The technology aspect, the business aspect. She has her own business ventures which are highly successful.

She's a very successful businesswoman in her own rights, and so she brought him into the into the conversation. But you know, the deal itself was negotiated by me. What about deals of the future. We've just seen a tweet put out by in a mask, an amusing one, an interesting one, I thought, provoking one, but him and Yeah becoming some sort of team in some way with him as Twitter and Yeah with Parla. What do you make of that? Is that a future you'd want for the

company you built? Yeah? I mean I think that I was highly entertained to see that that tweet. Obviously, um, look, strategic partnerships on the table absolutely. Um. I said this morning, I think in a in a in a comment that I gave that we are at the the end of the beginning of the start of the patriot economy. Right at the end of the beginning of the patriot economy.

This is I think. I think in the last five years you've seen a massive land grab in terms of companies launching and trying to take positioning in this space. You know, you're now seeing it in banking You're seeing it in social media, You're seeing it in payment processing, You're seeing it in everything from insurance to coffee, I mean to everything in the world. And I think what's happening now is that the space has become quite crowded

and you're going to see consolidation. I think you're potentially going to see more M and A in this space, um, And I think that's very exciting. Look, the decision is now yes, um, you know, and we are excited to work with him on that possibility. There's absolutely a possibility that he could want to turn the company around and and and sell it and make it something part of much bigger or in turn he could be looking for acquisitions himself. That's a discussion that I have yet to

have with him. So I think this is very exciting. George, appreciate the time. Thank you. George Farmer, Parliament Technologies CEO. Meanwhile, of course, women talking about social media the landscape, Peter tells we're backing some of those new entrants to the

conservative social media platform area. And meanwhile, and German startup delivering drones to Ukraine just got a big boost from one of the Musque's close partners Quantum Systems has received sevve million dollars in new funding from investors, including billionaire Peter tell. Tel says Quantum Systems is leaps ahead of the competition. It's applied at least for two drones to support the Ukraine Army coming up. Instacott has last yets

valuation multiple times this year. Is they coverted unicorn status on being wow deemed across at the moment killed in the world of big tech. We'll have to work out whether Unicorn should really be a name anymore. My next guest thinks, so this is Bloomberg. Our next guest says that by four we'll have redefined the term you Nicorn

entering have stalled Winnian era for the tech sector. Greg Martin's venture capitalists behind companies including GoPro, hub Spot and co founder of Rainmaker Securities, one of the largest platforms of trading shares of private tech companies now first and foremost. Walk us through before we get to Darwinism. Talk to us about why Unicorn maybe the time doesn't make sense. Well, Caroline,

thank you for having me. You know, if you look at the end of one we had over a thousand what we call uniform private technology companies that are market caps in excess of a billion, which represented about four point three trillion of market cap, just unprecedented levels the

size of companies. Now, certainly there's a lot of great companies in that thousand that do deserve to have the billion plus market cap and and and those companies will go public and be large companies in the public markets someday. But a good percentage of them got way out over their skis on valuation. And you know, partially because investors were chasing yield, they were looking for growth, and they

were looking for the next snowflake, if you will. Um. And the problem is, there are very few companies that really can aspire to those kinds of heights. And I think that's why we're going to see a lot of these companies not not sustained unicorn status in the future. Will we see the fading, Do we see more m and aid we see what does dolwinisn't look like? For you?

A Dewinian era in that respect, Well, listen, I think I think you will see there are truly companies that are of the size and scale and market leadership that will go public and they will they will they will grow their valuations. I think there are a lot of these companies that unfortunately, uh you know, their valuations were

set very high. Their businesses are still subscale. They were they were given a lot of cash to grow, grow, grow, and the reality is the growth just isn't there for some of these businesses, and I think those businesses will struggle um to ever become profitable. And so I think for those people, and I think there's a good number of companies that are good in that category, they will be looking for a home. I think the private private financing markets are drying up for some of these companies,

and so they will be looking for a home. Now. The good news is many of them have great products and there will there is going to be a very vibrant MP and A market I believe in the next two years. Okay, M and A. Maybe it'd rather better valuations and previously for the buyer at least. I'm interested therefore, as the seller and as a talent member in these

companies that are suddenly eroding their market value. Suddenly, people who have been promised certain exits or certain inquidity moments, or indeed being paid in chares, How does that look like for them. What does this mean for the talent going forward? It's a big problem, and you can see

some companies are being very proactive about that. You know INSTATCRT for example, that they just you know, lowered their internal valuation yet again UM, which which means the bar for an new employee or executive coming in as much lower UM. If the bar is too high than the your options or shares or whatever you get when you join the company are always going to be out of

the money. So I think we're going to see a lot of repricing of internal options in order to keep employee morale up, because the last thing you want to be doing is working for a company that's worth ten billion in the in the with your options it's only worth a billion, because when you're there for equity, you want to make sure your equity has values. So I think that's something we're going to see a lot more of what instacart did today. Uh, do you see future

unicorns being born in this era? Many people feel that sort of in the toughest of times, great stars are born out of them. Do you see that this could be an era of ingenuity of innovation or is this going to be one of stealth and and lower growth. For the timing. I absolutely think that we will have many new unicorns that are born during this period. I mean, one of the things that covid you really accelerated was the adoption of new technology, and a lot of the

incommon players were left behind. A lot of the legacy technology is behind the times, and so it's really created an opening for innovative entrepreneurial businesses to sort of seize the day and seize the moment and start businesses that that sort of are the path of progress, the next generation of where technology is going. So I actually think now is a good time to start a company. I just think we won't see as many unicorns as we did in one and let's he even get started on

Decacorn's Greg Martin. We want to thank you so much, co founder of Rainmaker Securities, talking us through his hypothesis of where we go for the big company valuations going forward. This is Blomberg Technology. I'm Caroline Hyde in New York. Let's get back to the markets. Let's get back to the chip sector. In particular, Bloemberg were the latest numbers in terms of semiconductor delivery times it was interesting, h interesting. Lead times for the semi conductor in industry average twenty

six point three weeks in the month of September. That data coming from Susquehanna Financial Group, twenty six point three weeks, down four days from the previous month. Four days doesn't sound like a lot, but this is actually the biggest month or month drop in lead times since the firm started recording the data. The lead time, of course, being the gap between when an order for a chip is

placed and when it's delivered. There are still pockets of tightness in supply, according to the firm, particularly in micro controllers and in automotive specialized chips. But you see that chart, we're in very elevated levels. Still, this is still a market where supplier is an issue, but at least we're now heading in the right direction. At the same time, we also hear all these worrying signals Caroline about demand. I think, of course, about a m D whose third

quarter sales estimates missed projections by a billion dollars. We reported, according to sources, that Intel is going to be laying off thousands of workers because demand for PC chips in particular has dropped off so it's gonna be really interesting.

Has been so much pain in the semi conductor sector, at least in the equity market perspective so far in two this is a really key earnings period where we try and work out what that balance is where the demand is disappearing and the supplier is improving, and where we net out for an industry that you and I have been glued too for good two years now suddenly have been Thanks for keeping us up to speed with the moves on the day and indeed some of the

lead times going forward. Let's get back to some of the views that's happening in terms of valuations in the private part of the market as yet, because let's talk venture capital, we want to talk about gender, we want to talk about equity within lack thereof, but some steps be made forward. Next few Ventures just announced when it was closer two on a million dollar new funding around.

It's got this largest RAYS to date and it's bringing on Stephanie Palmia, founding partner of all Rays and of course for Mark partner at Uncork as an equal partner. She joins me alongside of course the partner Melody Co. Both of you now at Next few congratulations on the arering, the beefing up of the team, the two hundred million. Let's talk first and foremost melody about the two million and the opportunities within seed funding, within smaller checks being

put to work. Is now the right time where you're going to see great businesses built. We're pretty excited, you know, I think that there's not a better time to be investing early stage company at the formation stage. As always, we're very excited to partner with founders just at concept stage, or founders who begin a little bit of traction post launch.

And you know, with the new two hundred million under commitment across both of our early stage C fund as well as the first opportunity fund that we call all Access, we really can partner with founders across the entire early stage PREC to C spectrum. So we're yes, we're excited. And what's so impressive is the previous hundred million investment vehicle.

You know, you put your money where your mouth is in terms of talking about backing diverse founders, and Stephanie, I'm sure many ways this experience, this proofpoint was what attracted you to joining next few ventures, and I'm interested as to how you remain and build on that commitment, having of course been one of the key founders over

at All Rays. Yeah, absolutely. You know, I think at the end of the day, diverse teams invest in more diverse founders, And you know, I'm really proud of the fact that our team at next to you is very representative, and we could still be more representative of the what we want to see in our industry. And so, you know, at the end of day, it was really important to me to join a team that not only is diverse itself, but also values that in the founders that invests in

And I think for us, diversity means many things. It means background, experience, ethnicity, race, gender, um as well as geography. Interested melody on when you see a downturn, how it tends to affect women, people of color building businesses when you go more macro. When I look at the jobs data, for example, very sad lead within the numbers, you're seeing women being the first one in, well last one in the first one out. We're seeing already the participation rate

being eroded. Are you worried that in some way people start backing away from the commitments they made during one to back diverse leaders. Yeah, I think that, you know, during times like this, there's definitely a risk of us uh going backwards. You know. I think venture as an industry is fairly insulated and very relationship driven. So during times like this there is um there is a challenge

of a lot of investors. Hopefully not but a lot investors might go back to their inner circles and founders that look more pro quoting for proven on paper. So you know, I think that's something that we definitely want to be conscious of, and you know, hopefully the industry at large can't really you know, try to pay extra attention, especially during time like this when it's easy to fall

back to bad habits. Indeed, and always of course Stephanie as something was meant to help accelerate bring China light on people who called a women who are building great businesses and help accelerate their growth. Support them. At this time, how are you finding the next exciting investments? Where are you looking? You're going to be bicoastal. We've got New York offices, San Francisco, But are you looking across the US?

You're looking globally? How do you find these leaders? Yes, I'm really proud to say that we're looking across North America and we're you know, tapping obviously into our diverse networks that we have within the next few team as

well as UM. You know, more broadly speaking, you know, we we look at the founders that we've backed in the past, the folks we co invest with, and we have a flexibility to invest, you know, not just in the markets in which our offices are based, but yeah, like I said, all across North America, and we'll be looking for great founders because you really believe that great ideas can come from anywhere. And I think what's been really interesting is, you know, Next to You has invested

with this broad geographic focus since its inception. UM However, you know, we've certainly been a broader friend in the market, you know, in this kind of post COVID environment in which companies are being built with more and more distributed teams. So it's not surprising to me that we're seeing early companies start in more and more places and will continue to be an outlet for founders to tap into the major funding markets in San Francisco, New York, in Boston

where we have home offices. Manady is there particular industries that attract you at this moment in time, and then particular areas or problems you think will become ever more evidently need to be fixed in this particular period. You know, we talked about the next few we're focused on fixing the broken user experiences across a lot of everyday user categories and habitual moments where whether it's at work or

at home where a lot of people spend time. So you know, I think there are a lot of interesting UM challenges right now. You know, one example can be everybody's during a hybrid work by home and into offices, So there's a lot of everyday working moments that can continue to be redefined and and you know, make Better is similarly, there are lots of challenges at home, you know, using that same context, and we talked about women earlier.

You know a lot of working parents and mothers are really you know struggling to juggle between um, you know, hybrid work and doing things like this on screen, and then you know, turn around having to deal with childcare. So many last week of a couple of kids coming in. So it's still there, it's still on that. Yeah, for sure, I love that that you're focusing in on that, and I mean, the balance is always real and we're at

the cold face of it in many ways, Stephanie. I'm interested in what the Bay Area has to offer right now and whether you're feeling this push full of remote people leaving at the moment. Do you feel that you sense that are people wanting to build businesses in other places than San Francisco? Yeah, I think I think the big difference here is the very is still a great place to old business, but the barriers to building a great startup in terms of access to talent, access to capital,

that's become more and more distributed. So it's not shocking to me that we're seeing more companies built in more emerging tech markets. What I do think is true is that there's still a tremendous amount of energy here and there's still a tremendous amount of dollars both at seed

but also in follow on dollars. And if you think about Melanie and my job as seed investors, you know we're writing that first early check into companies, really founders who are getting a business off the ground and running. But far and away we're not the last check, the last capital into these companies, and so really, I think the reality is there's a lot of capital concentrated here.

And again, I think founders are always gonna benefit from having one more note, one more access point to that capital. And Melodie like, we laugh about all the cameos the kids coming in us being in a cold face, but we're not. Actually because we're lucky, we're able to afford childcare. We are in quote unquote privileged women leading incredible lives.

And I'm interested is to how you fix problems across socioeconomic divides as well as people that problems that affect all areas of diversity, whether they are women or people of color, but also the socioeconomic variety and inequality that we still see in the US. Well, that's that's the big job, not just you know. I think we talk about this concept. We call it everyday economy. So within that term, we think a lot about all different types

of everyday person. And you know, I think if with that framing in mind, we're reminding ourselves every day to look for solutions not just for people like you and me,

but for other different types of everyday user. And I think it's also important for the rest of the industry, you know, our entire asset class to really think about finding solutions, not just for um you know I call coastal elites, right, but you know, really truly focusing on mass market problems and in leveraging technology to better that.

We want to thank you both so much for putting so much thought across the board in terms of investing for good and for diverse endpoints of MELODYO Stephanie Palmery, Congratulations on the new fund and indeed on the new team building the next few ventures. San Francisco Mayor London Breed is preparing her city to move beyond its tech dominated landscape, now acknowledging that many remote workers will never

fully return. So we're just discussing. But he said, quote life as we knew it before the pandemic is not going to be back. The comments now show a shift for Breed, who has spent much of this year working to lure people back to their offices as the city's return to office rates remain stuck. Coming up, why Texas regulators are investigating stand Bank went freed more on that. Let's back and it's time now for our daily Crypto report. A lot going on as always with f t X,

but sometime not freed. It's being eyed by Texas right now, Blak is here to explain what exactly what paut of SPS SINTA agreement and recent doings is Texas looking at. It's a great question for right now because it's tied to a deal. This is all revealed in the vein

of their purchase of assets from for your Judgital. The Texas regulator is now saying that they shouldn't move forward with that one point four billion dollar purchase of those assets, and that's partially because of this dispute over whether these are securities or not. When you look at the yielding assets that are being under f t XS purview here, what's interesting is it's not just f t X training, it is also sam maigment free that they are looking at.

But you also have not just a deal in play here, but also that classic question about who's overseeing the yield products that are under the purview of all of these large exchanges that are increasingly getting bigger in this game. So interesting, So the White Night hypothesis of some im free sort of being put onto the spotlight to allarge extent here yeah, and it's worth taking a look at

what they had to say in response to this. They said they have an active application for a license that has been pending, and they believe that they're operating fully within the bounds of what they can do in the interim. I think the other reason this is interesting is because you know that f t X has been operating in the Bahamas, separately in the US, separately in different jurisdictions around the world. And so how does Texas as a regulator fall in line with what's happening on the broader

scale globally as well as with the SEC and c FTC. Okay, let's talk about the other regulators that stok about the eyeing of three Hours Capital. I mean, what is going on there? I understand that is an CFTC issue at the moment. Yeah. Interestingly, the SEC and CFTC are looking at whether they should have registered in the United States.

So even if you're operating abroad, and as we know that the location of the founders has been under dispute, has they've been very hard to reach in the process of these bankruptcy filings where they need to be paying certain creditors back. You do now have the SEC and c f TC coming in and saying that or not saying that. These are people familiar with a matter of told Bloomberg that they are looking at, in particular whether they had violated rules by misleading investors and should have

been registering in the US in the first place. So again that global issue coming into play on how investors globally are treated without certain disclosures and regulations. So this is instead of certain products being sold here, we're looking at the very nature of how Three Arrows had operated in itself. Just bring us up to speed with where we are in the whole liquidation process. I mean, this

is never done before, certainly not on this scale. And suddenly with these some new types of assets and securities. It's interesting when you ask certain people who had been interacted with Three Arrows, you have to ask them whether they think they'll get their money back in the first place, because again, who is owed what and what part of the capital structure. This is not your typical debt proceeding where there has been the waterfall is not as clear

as it would be exactly. But Tonio has been appointed as an intermediary here to to work on this. But again even they have not been able to really access the founders in the first place. So how does a bankruptcy proceeding happen globally without the founders being able to come up to the table? Zoom cam work for everything Twitter either Twitter messages is how they've been trying to be aged by many a party in this feels quite

old school. We thank you so much. She's always across everything when it comes to crypto, and don't miss putting the crypto every Tuesday at one pm Eastern for even more of a deep dive. Meanwhile, coming up words of warning coming from Chinese President Chooting vowing to speed up innovation and air is vital technology self reliance. More on what this all means, particularly the chip sector miss a bring back Charini's President Chujing Ping pledged his nation will

prevail in its fight to develop strategically important technology. There's underscoring Beijing's concern over a US campaign to separate it from cunning edge ship capabilities, because, of course, is all at the twentieth Party Conference of the current administration. Let's bring in Bloomberg's Debbie Wu for more on this, because

the great gathering is upon us. The Communist Party over in China, big speeches, big push forward as to whether or not choojing Ping will indeed maintain control over the next ten years as well. But in the here and now, what are we hearing in terms of pushback against the latest moves by US to come off access to key technologies. So he said on Sunday that China will continue to

innovate to a reach tech self reliance. But the building that the question is whether Beijing can indeed push forward with its efforts after the new RONDOL for US export control rules, the newer measures that the Washington is starting to hear that the China's tech development broad and then we have seen that even no, none of US companies like that equipment supplier SML, has been not ensnarled in

the new wroungal for restrictions. So yeah, one of the broadest spent is about this sub restrictions for US persons to assist with China chip technology development. And then this is like the impact the far from this is something that we are still trying to get there better understanding about. You know, do you think that you know this is going to be a larger problem on China's economy. At the moment, we know that they're of course being beset

by COVID lockdown. Still that restraining the economy. We know that the overall the real estate has been a particular area of concern. How much of a worry and the list that they have is the limitation of US expertise

and indeed technology. In the near term, probably this is not going to cause a major problem for China's economy, But in the long run this will saw the effect bising's ambitions to better compete with the US and several fronts, particularly on emerging technologies including a artificial intelligence and self driving uh technologies. So in the long run this could pose uh uh a problem to China's efforts to uh uh sort of drive its ecomy with cutting edge technologies.

It has continued to be a deteriorating situation between the US and China. Will this be expeeding this up? How do you foresee relations and folding between the two key economies in the world. So with your latest US EXCO expo control measures, it is already up causing some more uh problems, some issues between the relationship between the two

great powers. So there are already a report saying that the Beijing is now a stone warding US efforts to uh set up agenda for the coming meeting between the she Jumping and Brill and Joe Biden next month during the twenty submit. So whether this is going to have uh sort of like more fault from the US measures including maybe a baiting is going to consider ramping up pressure on Kaiwan and it re meant to be seen.

But what we are sure of is that the deteriorating a relationship between not Beijing and Washington suddenly will make investors your more jutary about the markets, and it's certainly being reflected in many of the chipmaker's stock prices at the moment. Debbie, we we want to thank you so much for the areas of expertise when it comes to chips, when it comes to Taiwan, when it comes to hardware as well. Now that does it for this edition of

Bloomberg Technology. But you do not want to be missing tomorrow because we of course have a key voice coming from Mackenzie and Lenin's Rachel Thomas talk about women in the workplaces the annual report that's coming out. Don't forget to check out. Of course, the podcast. You can find did on the terminal as well as online on Apple, on Spotify, on course on my heart. But amid what was a bumper day in terms of on them they moves for stocks, particularly in the growth area in technology stocks.

We leave you with preparation, perhaps a more volatile one coming out tomorrow. We brace for earnings of course for Netflix from New York and from San Francisco. This is bloom Bag