Protests at Apple Plant and Sam Bankman-Fried's Apology

start on Wall Street. And Elon Musk is having second thoughts about that Moderation Council after saying activists broke the deal. More on that and Musk's new trend of quoting well himself. Meanwhile, though, let's dig into what happened at the main iPhone making plant in China's hundreds of workers clashing the security personnel after almost a month a tough COVID restrictions, a piece to say running bergsone in King is here for more details and in you follow Fox con in particular, and

well have this been anticipated? What sort of impact does this have on the output in the production as well as the people? Yeah, I mean, from an Apple perspective, this is not entirely surprising, given that we've seen increasing pressure in China, you know, people essentially fighting back being sick of these COVID lockdowns. Um so for Apple this isn't surprising, but it's also kind of worrying that this is an escalation, that we're actually seeing some form of

open protests and open resistance to these rules. And and you know, if you take fox CON's word for everything's okay, now, don't worry. It was just a dispute and we'll deal with it in the contractual framework and everything will be fine. But in the overall context of what's happening in China, you know, the videos that some of our colleagues were able to take a lookout for us and get hold

of are very worrying. Ian you cover a broad range of technologies for US at bloom Bow, principally the chip sector, but also kind of supply chains more broadly. This is like really difficult for fox Con. But what does it

mean broadly about US China relations? Because technology is basically at the heart of that conversation, right, I mean, you've got an escalating trade dispute between the world's two largest economies, and what's being used by the US as this chief tool to attack China or to to hold China back

is technology and something conductors in particular. So you have this escalating dispute, but at the same time, that part of China is an absolutely crucial part of this diverse, wonderful call it what you like, complicated supply chain that spans the globe. So much of the world's electronics economy goes through that part of the world. If we can't rely upon that, if there is going to be increasing difficulties of doing business there, then there has to be

some huge changes. And those changes, at least for investors, are going to mean initially huge amounts, costs, and a lot of time probably to relocate some of those factories and some of that you know, expertise that exists there. I want to watch no matter who you are, from a personal perspective and indeed from an investor perspective, in King, thank you for taking some time with us today, and

let's continue this conversation. Let's get the investor perspective. I'm very pleased to say that I'm very managing partner and founder of Threadneedle Ventures is with us an investor, and Apple also an amcestor in Disney and Amazon and Meta. So many conversations to be having with you and at the moment, and let's just talk first and foremost about the Apple conversation. How worrying is this sort of violence

erupting one that you'd already braced yourself for. Perhaps, Well, the reason I find it's a worrying, Caroline is this is at least one we know about. Which are the ones we don't know about? Says? We look ahead to how we roll out at the end of this year, which has been a very tentative one coming into the holiday season. If more of this is happening across China that we're not aware of, it means we are going to get some more bad news on supply chains to

we head into the beginning of the next one. That's what I'm looking out for, certainly in the public markets. Hey, and this is a really interest the story, right, Why are we concerned about Jung Joe? Jung Joe accounts for four out of every five iPhone fourteen pro handsets made. Right when you look at the stock story, the equity story,

are you worried. You know, this is a stock that's fed better than the SMP five, but it's still down, and that there a lot of voices in the market saying I'm not sure how impactful this will be in either direction for Apple. Well, you heard from Ian just the importance of that part of the world in terms of the concentration of chip manufacturing and consumer electronics manufacturing. I think in terms of the impact on the Apple story,

the much bigger one has been around global demand. Everyone's accepted that supply chain disruption is going to be past for the course for a little bit longer. That The big uncertainty right now is how is consumer sentiment, How is consumer debt going to start to dampen expenditure on discretionary items such as the iPhone? And when is inflation going to a bait so that disposable incomes start coming

back up again. I think those are the bigger drivers for the Apple story, and let's delve into that a little bit more. And because of course you do have an wide array of investments and indeed areas that you like to focus on retail first and foremost as well, talk to us a little bit about as we anticipate how Apple products will sell, but how every product will sell in the next few days. What is the consumer looking like to you? Well, you're really seeing Carolina, and

we've seen this. This isn't the first time we saw this in two thousand and eight, ten thousand and nine. My backgrounds private equity, and whenever this kind of dynamic came about, we would look to try to find two areas of retail to focus on and including in tech and consumer products that are tech oriented. Hire income consumers tend to do fine. It is the lower income households that really struggle. The hiring income individuals and consumers tend

to trade down. We've seen that with Walmart. I'm sure that some of the best buy news that we saw where people are bargain hunting, that's your hirer income consumer trying to go and find really great deals right now. That's what you're struggling household that's really been hit the hardest by inflation, really being hit the hardest by energy prices. So I think we're going to see value retells you

very well because everyone's going there. And I think we're going to see luxury hold up when it comes to things like gifting and special holiday season expenditure. It's really bifurcated as an and it's painful as always the same people seem to get hurt, the same people seem to win, but interestingly, do the same players win. I'm thinking also

of Amazon, which you have a big expocia too. This is a company that's become so large and every part of our lives where this way we consume, we've the visuals, whether it's about the way we spend. Are they going to do well navigating this environment? Do you know what I love with that? Amazon? Actually, Caroline, and you know

I've talked about this in the past. I think that Amazon becomes it's most innovative and it's most creative, and frankly, it's gutsy us when it comes to these kinds of environments. So Amazon really announce that they're going to be launching telehealth services. And I'm sure you saw that they've been trying to push into healthcare. They bought pill Pack, They've been looking at ways to integrate Farmer into their prime services.

But this is where you see the Amazon stepping back and saying, Okay, how am I going to allocate my capital now? It's actually not going to be on consumer stuff. It's going to be in services and places like healthcare. So I think those pivots are actually the strongest indicators right now for where they're going to see longer term

investment trends. And another huge story of the week Disney Bob, I get back b J peck out your reaction please as an investor in that company, I'm going to start as a brit since they are now three of us here. But I was playing before, I playing take that back for Good almost as the kind of the jump off for when I saw that announcement. Look, I think it's it's very good to have a safe pair of hands

back in the saddle. And I think Ed and Caroline, when you look at what's happened over the last six to nine months, whether it's private companies, whether it's public ones, the businesses that have had bad news, whether it's attrition subscription in Netflix, whether it's been Snap for example, where we've seen a number of users little down. Let's go and use that word again, Caroline, bifurcation. The ones that have at least come out with the plan have been

rewarded Netflix. We don't really know if it's going to work in the long run where they're added, but they've been rewarded. The ones with no plan snap have been a slutely punished. Disney to me is going to be a little bit somewhere in the middle right now. So we've got a trusted, safe pair of hands back in the CEO seat, But we need to hear what the plan is going to be. And until we hear what that plan is, I do think we're going to have

someone certainty around Disney for the moment. I'm pleased. I want to hear the details. Hey, and we're so grateful to have you to wrap the news of the week, but just very quickly before you go give us the end very three outlook. Oh you know what. I wish I were the bearer of brilliant news going into the Thanksgiving season, but I've been a bit more bearished than some. And I think that's because we're riding the sort of bubble at the moment of optimism that the Fed's going

to start slowing down on their rate hikes. But I think this issue of how how much the consumer is suffering, not just in the US, also in Europe. I don't think we talk enough about Europe here in the US right now, and just in the impact. I think we're going to see that filtering through in three So I'm really looking at much sort of safer stories right now, much less discretionary spending. I'm looking at all sorts of investments,

particularly in the private side, for the good term place. Okay, Thread Needle Ventures managing partner and founder and Berry, thank you. It's still the story of the week, of the month of the year. Let's continue to dive deeper into what propelled the fall of Crypto Exchange f TX. Have foundness a magmun for you to apologizing to employees for the Crypto Exchanges failure bugs. Animasa joins us for more on what we've learned from the bankruptcy hearing again Annie and

also his own background. First and foremost, what do you make of any sort of apology coming at this point? That's right, So Sam BigMan Fried has apologized now in a letter to the exchanges employees, and he sort of said that he wishes that they didn't end up in this place, that he's sorry for what went wrong. I mean, it's up to those employees who have really experienced dramatic fallout from this implosion to decide whether that's enough of an apology for them, But he is still speaking out

about what happened and giving his side of the story. Hey, Annie, if you're new to this story, I have some sympathy because each day a new name comes up. The latest name is Jane Street. Could you explain to the audience the relationship between Sam Bankman, Freed f t X and Jane Street. Sure, there are a lot of players to keep track of, like you mentioned, so Sam Bankman, Freed ran f t X, the now bankrupt crypto exchange, once

the second largest crypto exchange in the world. But before all that, and before this dramatic downfall, he worked at Wall Street trading firm called Jane Street and Jane Street is really known um for its obsessive focus on risk and it's a very successful trading firm. And his pedigree and background at Jane Street is part of what helped him get to the level that he got to. It's part of what helped him impress VC investors and people

all around both traditional Wall Street and crypto um. Jane Streets known for attracting really um you know, very high i Q math nerds. It's known for its love of puzzles and games and uh and just for its success. But it's a very stealthy firm. So in our story we pointed out today that f t X doesn't seem to have brought to bear Jane Streets focus on risk to its own enterprise, to say the least. Yeah, exactly.

I mean the fact that overall over Jane Street, they permanly were trying to learn from previous mistakes, trying to analyze would have gone wrong, trying to keep on invading and and looking at risk. He seems to have done basically the opposite. Many would blame because of the stratospheric way in which the company grew. Some would talk it just messy accounting whatever they want to be divulging of it.

But the bridge that he built between crypto and traditional finance and regulators, how much is that now seemingly been undercut by what he was up to. Yeah, so he had this background from a traditional Wall Street firm, you know, from traditional financial markets. James Streets an enormous player in E T F S and M and James Streets, you know,

well known and very well respected. So he brought this pedigree really to the world of crypto, and it helped ingratiate him and and helped make other investors feel comfortable with him, and helped really helped him impress them, impress the rest of the trading world. So, I mean, what's happened at FTS has really like boggled the minds of those VC investors, of traditional Wall Street and of crypto

as well. Um, the way that it's unraveled so rapidly and the intertwined really really deeply intertwined ties between Alameda his trading firm, and hedge fund and f t X, and it's it's really shocked, um, everyone in in all of those spheres. Alright, just very deep, terrific reporting there from Bloomberg's any massa thank you? Coming up, we'll be joined by autodes CEO Andrew Anagnosed to talk about his vision for the company and how it's navigating a pretty

challenging macro economic environment right now. This is Bloomberg. Autodesk slumped as much as ten percent on Wednesday before pairing losses. Still, it was the worst performing stock on the NASDAC one this after it cut its four year billings outlook. And let's say, demand for multi year contracts fell as customers preferred one year contracts. That's the story of Bordered Desk. They want to move to annual renewals, but it's also

the challenging macro environment. Fortunately, Autodesk CEO Andrew Anagnosis is here with us. So I guess the question at this point, Andrew, is why why are customers behaving in this way? What are you learning from your earnings report this season. First off, we're learning that the business is highland resultient. It's highly diverse, so we're seeing a lot of great outcomes in from the diversity business outside of Nina and Russia. But we're

also seeing sensitivity to currency fluctuations. We saw that in the quarter where we see that moving forward, but we're also seeing softness in Europe, and like you said earlier in the introduction, one of the things we're trying to do is we're moving our customers away from paying up front for multi year contracts to buying multi year contracts

that are build annually. And you know, when you're entering a period of uncertainty, people start to conserve cash, and that's what you saw with regards of the building in Guidence and I think a lot of the reaction you start at the stock wasn't really about what we're talking about in the next quarter. It's about some of the

signs that we were projecting about next year. Yeah, talk about those projections though, because our bloom Bag intelligence analysts, many of analysts out there sort of talking about you were very optimistic back in, almost perhaps too optimistic, sending yourself grand targets, and then due to Macrobe, maybe due to micro you're having to pare back from how hard is it in this environment to forecast for the next year to full cost out further than the next year. Yeah,

we we were. We were We were optimistic before the pandemic hit, and certainly we actually performed incredibly well through the entire pandemic. But really what's really making it hard right now is the unprecedented volatility we're seeing in the currency exchange rates. I mean, we we signaled next year that there's probably a five point headwind on on our revenue are are as reported revenue just from currency head winds, you know, and also that look, the uncertainty in Europe

right now. You're one of your earlier speakers spoke about the fact that Europe's not getting enough airtime. I would tend to agree with that. You know, we're about to head into the Russian winter there, and you know that that could eject more volatility and more more concerned into our end markets and into other people's end markets as we move forward. So it pays to be cautious as we kind of get through this winter season and head into next year. But currency fluctuations make it really hard

to know where things are going to go. And also some of these concerns with regards the energy costs in Europe are are affecting some of our biggest customers. Talk fundamentals here though, because almost in fex conversion is in some way technical, But really, how bleak does the economic out look look in Europe? And do you have to start pivoting away, start deciding that you're going to change

up your business? Look at the costs over there, look at the way in which you thought you would penetrate Europe more broadly? Absolutely not, yes, because you're you're right, Heathens is a technical thing. Costant currency wise, our business looks a lot stronger, and Europe continued to grow, it just slowed, all right, And I think it's important to recognize that you're will continue to slow. However, here's what's important in the customers who are using our products are

working on critical parts of the economy. They're working on buildings, they're working on infrastructure, they're working on manufacturing. They need these products to complete what they're doing, and in tough times,

what they do is invest in greater digitization. And what we want to do is partner with our European customers, are American customers, are Asian customers, to help them digitize more effect comply in a world where they're frankly telling us they have capacity problems, labor shortages, material material access shortages, they have more business than they can actually execute on right now. And I think that's what we have to

pay attention for the long term. Hey, Andrew, I think it's where from minding the audience right, what Autodesk does you guys make software for architects for big construction projects that helps with design, and I know you want to move into other areas. That leads me to M and A. M and A their options for you there. I know there's some chatter in the market about some private names some arc g I S makers, ESRI is one. Have you tried to buy a name like that? Could you

buy a name like that? Well, we never comment publicly on on M and A, but what I will say is we've always been an acquisitive company and we're super interested in growing adjacents around our business. We want to fully connect design and make together in the cloud. So we're always looking at things that lean into the future of where our markets going. So look for us to

continue to be inquisitive. Valuations of reset a reset of quite a bit this year, so we were less acquisitive than usual years, but look for us to get back to our normal levels levels of acquisitiveness we move forward. Hey, another big story this week, HP cutting up to six

thousand jobs over the next three years. I know that's on the hard west side, but you know, in terms of financial discipline, in terms of reacting to the macro picture, what cost cut measures, what discipline measures are you taking? You know? The goodness is is we've always been really disciplined heading through this entire cycle. We never tried to get over our skis in terms of investing for the future.

We've tried to invest prudently strategically, We've taken adjustments as we went along, if if we if we found ourselves building up headcount where we shouldn't, we adjusted as we went along. We've always done small adjustments. So we feel that we're in a really good place that we can prudently move forward. We're going to continue to invest and if there's a problem, we just turn off the hirings. Pigot okay autodes CEO Andrew Anagnosis, Real pleasure to have

you of us. Thank you, welcome back to blom Bog Technology. I'm Caroline Hyde in New York and Ludlow he's over in San Francisco and end just talk to us once again. Elon Musk pulling out another rub it in the hat in terms of the Twitter saga, what's he doing now? Well, everything we've talked about has been so focused on the company, the layoffs, how the company is structured. But what about

the platform? Right tweets on Wednesday, the day before Thanksgiving that activists that he appears to have had an agreement with have renewed on that bargain, on that deal, which was part of his reasoning for forming a moderation council. Go back a few weeks he talks about this Moderation Council being a wide and diverse range of voices who

would make basically content moderation and policy decisions. Now, the reason I bring that up is that some key things have happened in recent days, right, and you think about the actions that have been take he can he said that he would not reinstate President Trump's Twitter account without being informed by this Moderation Council. November, he tweets the pole you see that on your screen. The majority of

respondents vote in favor of reinstating Trump. So on the following day, the ninete, he does reinstate Trump, though Trump says he's not interested in returning to the platform. He's sticking with true social Fast forward November twenty two, present day, he tweets, now, what's not clear. Does that mean that Musk is done with the Moderation Council and that idea is over or does it mean it's been compromised or

undermined by what most cause activists. We don't know who these activists are specifically, but it's an interesting question because now what we startin c Caroline is platform decisions, not company decisions, but things that you know they impact your and my ability, the audience's ability to use the Twitter platform, and let's just talk a little bit also about how he uses the platform himself, because it's taking a lot it would Elon Musk of his own advice on Twitter

at the moment when it comes to his management style of Twitter. In the latest column by our Business Week friend and colleague Max Chafkin, he writes that the new Twitter CEO is impressed by points that he himself once made previously. Is the Tesla CEO, of course, which still is boss. Chafkin joins us now to explain, it's a really amusing article, but you're sort of poking at something that is brutally real that he sort of keeps getting sense of self inflation by the wisdom he's given in

previous years. Yeah, In the article, I focused on what's kind of a funny phenomenon that anyone who follows Elon Musk will kind of recognize, which is, there are these fan accounts that do nothing essentially but tweet quotes from Elon Musk, and Musk has a tendency to respond to those in the affirmative, So he'll see something that he has already said and sort of respond exactly or you know, great point or whatever, which is pretty any just as a behavior and and who knows, maybe he's doing it

in part as as as yet another kind of troll. But I think it's interesting because, as Ed is talking about, we are seeing this gigantic, you know, very large social network. He paid forty four billion dollars for this thing, borrowed a very large sum of money, and so many of the decisions are coming down to basically the whims of of Elon Musk, where he's you know, deciding whether or not to ban or or unbanned people based on it.

It seems honestly how he's feeling at the moment. And we're also seeing a situation where they're the circle of advisors, uh, seems to be very small and seems to you know, mostly consist of people who are basically telling him what he wants to hear. And when you back away from Twitter, you see that Elon Musk is also running you know,

a very large electric car company. He's also a major defense contractor, and you have to wonder people work at those companies have to be asking themselves why is he spending so much time, you know, talking, for instance, to these kind of like want to be talk show hosts, to these right wing influencers, to these meme accounts. You know, the other day he was he was tweeting with something called cat Turn, which is like a you know, right

wing memur um. It is not necessarily the behavior that you'd expect from somebody who's taking a rigorous or serious approach to running, you know, a social media company. Instead, it's somebody who's treating this like basically like an influencer. He's he's playing to the crowd. Yes, Max, you ask at the top of your column, reality distortion field. Anyone talk to us about that reality? I mean, as journalists, we've come in for criticism from Musk about how we've

covered his Twitter takeover. But what we've got to go on are the tweets that he makes. What have you learned from Musque tweets since October twenty seven when he closed the deal and owns the company. Well, a couple of things. One is, you know, the reality of distortion

field that cuts both ways. And I feel like over the last you know, five years or so, as we've been talking about Musk, you know a point that you know, lots of people including myself bring up all the time is that he's an amazing marketer, and this this sense of like a different reality, the sense that anything is possible, that stuff is all really worked to his advantage, um, and has allowed him to build, you know, the largest most valuable automaker, one of the largest companies in the world,

pretty much against all odds. And I think what we're seeing is kind of the other side of the coin here where um, you know, he's in this very what feels like a very narrow world, right, He's sitting there reading the mentions and um. And you know Musk's point right that u oh, that the journalists are out to get him or you know, the other day he was accusing the Associated Press to being part of you know, the far left establishment. You know, it's honestly pretty hard

to know how seriously to take that stuff. It feels like it's mostly just about trying to juice engagement for Twitter. And you know, as as Twitter has continued under Musk, he's been posting these charts right where they they gained a million unique visitors over the last week or some thinking, and which is kind of cool, but it feels like, you know, this may be very shortsighted. Max. We always like your long term perspective. Thanks for bringing it. Business

economnist Max Chafkin there. Meanwhile, one of the things that we're all noticing is the employee exodus at Twitter has been raising concerns about diversity at the company. Lots of pictures circulating of far more male influence left building with Elon. It's a problem not just for Twitter but the text space at large, of course, And we want to just

look at the metaverse now. A new report says women are spending more time in the metaverse and more likely to spearhead initiatives in the next generation of the Internet, but men still hold the executive positions and organized shaping this emerging market now. The report by McKinsey says, quote, women are still locked out of leadership roles key to

establishing an inclusive metaverse. Women hold just eight to ten percent and leadership positions and organization's driving metaverse standards for more. We want to get into all of this with Savannah day Comes, founder and CEO of Women x Meta, which aims to place more women at the forefront of WENT three technology. And Savanna, what's really interesting is we went to our audience, and we put out a poll and said, a do you worry about lack of diversity of metaverse?

Do you think it's going okay? Or why should I care? Most said, why does it matter? Tell us? Why does this matter that it's diverse, Because I think if you look at the history, women in particular and people of color have been at the center of innovation, yet they don't hold those leadership roles. So if you don't have those voices at the table to make sure that that build has all of the inclusiveness and richness that is offered by innovation and technology, then you're missing out on

that opportunity. How are you already seeing that reflected in the very first innings of what's being built in Web three? Well, I think that there are women and there are people of color here, but we don't often get the highlight and the spotlight, and think that that is um sort of damaging in terms of how you think about where we're headed in the future, the democracy that was promised

in Web three. But we're already seeing that even when you look at AI and other types of technology, it isn't being fed properly to reflect the diversity of the people that are going to be consuming it, so it is necessary to have that innovation at that conference and at that table. Hey, Savannah, I love what you just said about different types of technology. If you allow me, I just want to draw on some of my reporting

experiences of the last few years. I was reporting on self driving and I had a conversation with Aisha Evans, the CEO of Zoos, about this very topic, and she made a very simple point. They're designing a product, right, it is a future product that doesn't exist now, a fully self driving vehicle, no steering wheel, no pedals. But

her point was very simple. If you're designing something that is for people of all genders and creeds, you have to have those people involved in the process, otherwise the product doesn't reflect your market audience. Is that same principle applicable to the metaverse. Absolutely, It's the same kind of ideal about technology and future focused sort of living, working

and play. Right, So the ideas are generally the same that if you want everyone to participate and you want to have a profitable product, that you make sure that everyone has a voice in that so that you actually are a company that can thrive in the next generation. So what do you want Meta and companies like Meta to do, Savannah. You know, Meta dominates the market for virtual augmented reality headsets right now. They're kind of the real world manifestation of the metaverse. What can they do

to solve this problem? Well, I think it's pretty simple that you just need to do an outreach to those large groups of people who are sitting here waiting to actually participate. I think what we look at is Web three is already starting to prove that there are individual entrepreneurs who are out here innovating and creating for the next generation. So if you want to participate and you are not already in Web three, then you're going to have to reach out to the people here who are

building and who are creating. So Meta isn't just there as the only company that is making a difference here, it's actually some of the independent entrepreneurs who are We did see, particularly perhaps in the n f T space, women coming together. A lot of it was spelt celebrity endorsed in some way, but coming together and trying to say let's build in that way. It's like art that's reflective of women. Unfortunately, I think a lot of the art that got made was basically hot women, which I

don't think is actually all that inclusive. But I'm interested in what you think can be done in here and now that stops. For example, when Apple first released its health app, They're not being a period tracker like that was sort of an evidence in that particular formal web two where a lack of female engineers and building the software had an im what's being lost now on what is well optimistically being built by the women and the

people that call it already at the table. So I think what's being missed now is that the opportunity to actually have a very expansive idea of what the metaverse can be because I think what we often look at is just the technology, but we don't think about how the technology can actually solve centurial problems, right, And I think, like, for example, we have a health care system that is really crippled, right, and if we can find ways to actually look at it across the globe as how everyone

is innovating and sort of bringing that together into how the metaverse can be used to solve that sort of problem, that would be fantastic. Um. I actually think that, UM, when you think about how women participate here. They don't really want to casual sort of hyped focused opportunity. They want to really deeply be engage, whether it's about healthcare or whether it's about the way that they live and they exercise. They want everything to be lifestyle and have

real user experience here. And that is what women bring to this. And I think with respect to how you thought about the art and you you mentioned n f T s, I think the people who are artists really want to reap the benefit of actually having built something

that people appreciate. And in previous generations, once they sold their piece of art, they never really saw any benefit of that later on until the n f T gives them an opportunity to actually reap that benefit for many generations to come an art that is more diverse in

and of its very function and form. We want to thank so much women ext Meta founder and CEO Savannah Dago, and thank you have a wonderful Thanksgiving sticking with the metabus thinking about actually n f T s and thanksgiving it and if your sold that Macy's it's doing its first ever n f T parade balloon basically right here, right now, and can go on and vote what you want this non fungible token element of a balloon to look like, and then it will be your reality in

real life. Come. It feels extraordinary timing to be doing this, and I'm kind of hopeful that these sorts of brands, very old brands, are still very much focused on the digital and they're here and there now. Macy's Parade is a mainstay for a lot of households. They're splitting this audience. I don't know which one I'm tuning into that. Wow, yeah. I Meanwhile, coming up, we've got so much more to

get ahead of our Thanksgiving turkeys. The case of bitcoin, we're going to discuss going forward and how regulation will shape crypto markets as a bloom bug. Bitcoins hash rate is at an all time high, and that is a real indication of the security of the network uh ethereum. We're seeing the total value uh staked at twenty four billion, That is an all time high, so we think the

infrastructure is working beautifully. Our convests. Kathy would justifying recent investments that she's made in coin base in crypto, and she's sticking with her prediction that bitcoin will hit a million dollars by twenty thirty or, of course, despite the current fura around the fallout of f t X, as Sam Magnun freed Johnny us now to discuss all of this, at least Killeen, founder managing partner at still Mark VC, who invests in bitcoin related companies, and to that end,

at least, how much has your world been overshadowed by what currently is unfolding with f t X, which is sort of a centralized part of the decentralized future And hope, but I'm interested in whether you've found an uprooting of your world too, Caroline ad The biggest lesson here is that the value is in bitcoin and self custody and not crypto, and that's a lesson that we get in

every bare market when the tide goes out. So as a long term equity investors, still Mark is focused on the accruel and build of sustainable value and enterprise value specifically, and that hasn't changed in any fundamental way. Instead, I think what's happened here, I hope the silver lining is that fraud and dishonest narrative has been washed out, which is necessary for the ecosystem to advance as a whole. And hopefully we get back to the fundamental questions of

what we're all doing here and why bitcoin is important. Well, at least let's get to that fundamental question. I always keep a bitcoin shart handy, as one does, and you know, go back to November eight, November ninth, that's where the sort of Sam Bankman freed contagion. Look at the far right hand side of your screen, like, that's where it happened. But between June and October this year we've traded sideways on bitcoin. What is the fundamental driver of this cryptocurrency

long term? What gives you the faith? What gives Kathy would the faith that it will reach cry a highs of course, So first of all, bitcoin fundament fundamentals are intact. What's historically been important for bitcoin is adoption, of course, in the expansion of bitcoin's utility set, and that is all progressing at an incredibly rapid clip. We saw, Kathy would note that bitcoin's hash rates up, meaning Bitcoin is increasingly secure, and in addition to that, we're seeing bitcoin

holders become more sophisticated. So as an example, after the ftx collapse, that there was a spike a peak in the sale of hardware devices that can allow bitcoin holders

to hold and secure their own bitcoin. Something notable about this fair market, also from a bitcoin markets perspective, is that we see less volatility and we did in the last bearer market, which is an indication of an increasing level sophistication and market participants, and of course also reflects higher trading volumes in contrast to the prior of our market. What I'm interested in is thinking more about the ecosystem. You say, it's getting built still a lit a very

quick clip. What helps or hinders right now? Is interesting that in the state of New York, Kathy Hokel, the governor today sort of talking about a moratorium on crypto mining, and that seems to be explicitly more about a proof of work rather than proof of stake and just basically energy efficiency here. But how much does that hinder perhaps the overall focus on hash rates, on bitcoin as a

process and indeed building around it. Well that's a very interesting point because actually that was one of SPF and f t x is pet lobbying memes, which is that proof of work is something that is inherently a malevolent activity, but of course we know it's necessary to be able

to secure a centralized ledger like the Bitcoin ledger. And in addition to that, we know that proof of work is quickly shifted to relying on sustainable energy sources, and in fact, I think it offers the opportunity for other industries to take an example of what can be done in adopting sustainable energy sources, which of course also have the capitalistic benefit of being very cheap, and miners compete for cheap energy um and so a note here on

one of the other benefits of fraud and dishonesty being washed out of the system to some degree is that f TX leveraged their their novel and native joke and f t T to boost their assets and likely as collateral to access loans. And with that money they did, they created sort of a really quick scaling in both their size and in their power and perceive authority, including in front of regulators. And so what they did with that was trying to impugne often the virtues of the ecosystem,

which is pit coin to approve of work. And so I hope that by seeing or finding that some of the leaders that regulators might have felt trust for seeing them their operations be made transparent and having dishonesty or misdirection revealed will allow regulators some time and space to ask the hard questions that lead them to better sort

of discovery understanding the truth. Okay, still Mark VC founder and managing partner, at least clean Going viral today is a Bloomberg scoop on Amazon's big plan for its content budget when we've been making tiktoks about it, because Amazon will spend more than a million dollars a year to produce movies that will release in theaters, and the largest commitment to cinema by any Internet company according to sources.

Now that would be what twelve or fifteen movies per year, and the news sent AMC cinemak shares powering higher because Amazon has been somewhat of an ally to these theater groups, while other streamers like Netflix have sort of struggled with their strategy to release content on their service in theaters or indeed simultaneously between the two. That said, though, of course, Netflix actually releases dozens more movies a year compared to

what Amazon. Producers bart Amazon did like to get into theaters, remember when it first acquired movies and film festivals. Eventually earning Academy Award nominations for The Big Sick and for Manchester by the Sea, and then went on more recently to buy film studio MGM. And despite declining ticket sales, filmmakers, Hollywood veterans, talent representatives are all pushing for media companies

to embrace theaters. And then I really think this is evidence of their commitment to MGM and the fact that people perhaps do want to consume movies in different kinds of ways. Remember when Amazon bought MGM. Key names from MGM left producer Jackie Lopez in my ear Manchester by the Sea. But I can't really name another big hit from Amazon. I did love Rings of Power. That's a TV series, right, interesting to see what happens. Yeah, the

fact that they're doing is two pronged approach. Now meanwhile, of course, and that does it for this edition of Broombag Technology. And of course we're breaking taking a break on TV for Thanksgiving, but follow us on social hay yep, and wherever you get your podcasts. This is Bloomberg