Transcripts For BLOOMBERG Bloomberg Technology 20240714 : vi

BLOOMBERG Bloomberg Technology July 14, 2024

Lawmakers somewhat presumptuous. And, deep fakes. From trump to pelosi to obama to zuckerberg, no one seems to be safe from videos that are so good that you cant tell they are fake. We speak to one company who says they can. Heads of Companies Back in washington on monday. Trumps top Economic Advisor in secretary called a meeting to talk about the trade war with china. One topic stuck out, the fight with huawei and whether the ban should stand. Representatives from microsoft, intel, qualcomm, and more. What is the latest we know about this meeting . Who was there . What was discussed . The meeting was called basically to hear a view from a business perspective. We do hear a lot about the huawei fight from the hawks and the administration and on capitol hill who obviously are in favor of a total decoupling of supply chains. This is a chance for them to make their case of wife huawei should of why huawei should continue selling. The invitation list was pretty broad in terms of companies that are affected by this. Sent aompanies have letter to commerce secretary wilbur ross a couple of weeks ago, making their case in writing, in private meetings at the commerce department. This is basically their second run at it with a broader audience. The commerce secretary was in the meeting but he has heard the case before. Watching forl be any headlines. We want to get a lawmakers look now at the case against chinese tech and the alleged threat to u. S. National security. Lego man rubin get reben gallego is standing by. That thisur sense meeting is happening at all. Rep. Gallego is not an independent act. An independentt actor. It is an arm of the Chinese Government. Huawei was working with a shell company, in north korea, supplying them to knology that was them technology that banned. We want to enforce a huawei zte sanctions regime that we think is effective. The president should not do oneoff traits for farm goods for something that could affect security of our country. Emily many people, including high level tech ceos, would tell you privately that they see no evidence that huawei has spied on u. S. Rep. Gallego i hope they would look at the panda Shell Corporation set up in north korea that allowed huawei to essentially do business with north korea. It is well known that among Chinese Companies it is part of their mandate that they make anything available to the Chinese Government. While i respect a lot of these companies, their goal is to have the highest margins for their shareholders. As a member of congress, my responsibility is our National Security. This sends a very bad message to our allies overseas that we are trying not to get to incorporate huawei. It makes it difficult for us to share information with them. Emily you are referencing a report in the Washington Post that huawei has partnered with a Chinese State company, panda, on projects in north korea such as improving their Wireless Infrastructure. When the president was asked about this, he didnt seem particularly alarmed. He said the u. S. Will lead on 5g. We will see what north korea does. How does this potential north koreabout change your objection here . Rep. Gallego i object even harder. I think other corporations and members of congress should be worried about this. You pe really tells this Key National Security issue. President is not understanding what could happen if huawei is able to have access to our Technology Market as well as our allies, and is trying to display one trade war against each other. We should not be trading access forhe 5g market for huawei us to go back to what we had pre trade war, for us to be able to sell products to chinese markets. This will have longerlasting effects to our National Security than this temporary trade war. Emily the leaders of these u. S. Companies will say that the blacklisting of huawei has significantly hurt their bottom line. Some of these companies provide chips, forrovide consumerproducts that they say dont have an effect on National Security. Rep. Gallego they are wrong. Communityntelligence we have a right as congress, as a nation, to stop corporations to engage with other countries or entities that put our National Security in danger. I dont see these companies complaining about us having a sanctions regime against iran or other bad actors. They do not have the right to make a profit at the expense of u. S. National security. Hopefully Congress Gets our way these ceose to stop from getting their way. Emily what would you like to see the trumpet ministration and congress do the Trump Administration and congress do . Rep. Gallego i think the administration should continue the sanctions. If they dont do that, the house and senate, in a bipartisan manner, should pass a new sanctions regime or continue the sanctions regime that is on file to make sure we are enforcing some good order and discipline. Emily since i have you come i have to ask you about iran. The president defends withdrawing from the Iran Nuclear Deal and at the same time, iran has seized a british flag oil tanker. What do you think the u. S. Should do . Rep. Gallego i think we have to but in ao iran, measured manner. I think, at the same time, we do have to recognize that us without ae jcpoa major plan, more as a reaction to antiobama policies. Iran says they are going to comply with the jcpoa but there are other areas. The last thing we can afford or need is a war in the middle east. It is not in our National Security interests to engage in this type of war. But we have a lot of tools in the toolbox to keep iran in check and deescalate the situation through diplomatic means. Emily at home, the president under fire for now multiple days for what some have called racist or racially charged language about four congresswomen, all women of color. Do you think the president s remarks have been racist and that he is stoking racial tension especially given his response or lack thereof of his report of his supporters as rally chanting send her back. Rep. Gallego it is not the first time the president has enrage his base. He started his political career of notsing barack obama being born in america. He accused a judge who was born in indiana of having dual loyalties. It is not a surprise that he accuses four american women of not loving this country. These women are of color. He disc he does not describe nancy pelosi or other women who are white of not loving the country. He is trying to gin up a base of his support that a racist. Emily thank you so much for stopping by. A prominents gained Cloud Computing customer from the field of Artificial Intelligence. The Software Maker has agreed to invest 1 billion in the partnership with Research Group open ai. Elon musk and peter thiel gave at least 1 million went it was created. Facebooks libra got a little love from lawmakers on capitol hill but will they welcome the new money . This is bloomberg. Emily lets look at how some of the major cryptocurrencies fared monday. Ethereum allcoin, down. Facebooks cryptocurrency project libra continues. Congress grilled david marcus over the proposed stable coin, one that some analysts say could users tothe platforms create a global currency. I want to bring in the ceo of ripple and protects and bloomberg techs kurt wegner, who was in the hearing. I think they have taken a very bold, ambitious effort, which is part of what makes Silicon Valley great. I think there is a little bit may be more than ambitious, maybe arrogant. The white paper articulates it is a new currency. I think the u. S. Dollar works pretty well. This is a moment where i agree with the president. We dont need a new fiat currency. There might be some smaller markets, the argentinian peso, that might make sense. , a way they rolled it out lot of headwinds, turbulence. We talked about the level of skepticism and ire. One lawmaker comparing it to 9 11 and the level of danger. What happens next . That is to facebook to figure out. We have this group of 28 partners that will be part of the Libra Association that oversees the currency. There is no charter for that, no payments have been made. Need toooks side, they get their Team Together to get this move right now, it is an idea but not something that is tangible. Emily do you think the regulators will let libra happen in the u. S. . Brad facebook had conversations with regulators before they announced the white paper. Facebook had concerns. It is very important to both the u. S. Government and governments around the world that financial regulationutters matters. These are important financial pieces of our system. We have to make sure that future construct keep that in mind. The only danger happening right now is that legitimate projects taking advantage of crypto to solve real problems get caught in the crossfire. Even the president came out and tweeted, i dont like cryptocurrencies. Thats like saying i dont like an Internet Company in 1997. Theres lots of shapes and sizes. Emily some have said that if libra succeeded, that would not be good for ripple. Is there truth for that . Brad no. Facebook is a consumer company. What ripple is doing is at the institutional level. We are connecting ask. Connecting banks. We had one of the best weeks in our history. It is a call to action for banks. Someone said it is the end of western union. We have taken the opposite approach, lets work with the system. Regulations work at that point. We can paint with one broadbrush especially at the federal level. Emily you work with a a lot of banks. What did they think of the Libra Association . Brad a lot of people signed up, the 28 members signed up, it was just an moi, no money changing hands, no hard commitment they wanted to have a seat at the table. The 28 whoee if signed up continue to participate. I thought it was very noteworthy that there werent any banks or Financial Institutions within those 28. That there been reports there has been skepticism among the partners that have signed on. What are we hearing . Kurt they are not saying anything publicly. That is one of the concerns, that facebook is out here taking the beating for themselves. If i am facebook, im saying, are you guys in not . Bloomberg has reported that facebook and others in the association are out talking to banks right now. I think it does add a level of legitimacy to this whole effort right now, this whole effort. Right now, if youre facebook, you want someone to Say Something publicly. Emily on another topic, there have been reports that bank of america has taking a has taken out a patent that it would use ripple ledger. Can you confirm or kill the speculation . Confirm norneither kill. We are working with a lot of banks around the world. Some of the largest banks in the world are customers of ours today. We will continue to work with big banks around the world. Surprised by that Patent Application because we have not announced anything. Emily thank you both. Coming up, how china plans to keep up with the tech ipos by opening a new nasdaqstyle stock exchange. This is bloomberg. Frenzyin china, treating frenzy trading gripped the first day of the new index. The socalled star market is chinas attempt to avoid losing the neck alibaba to new york the next alibaba to new york or hong kong. We talked with someone who is worked with many of chinas top tech startups. I think it is expected given the expectations, limited supply. Im not terribly surprised by the firstday performance. But i think that is the beauty of a new market. Its going to take some time to settle down. We see more supply of companies in the pipeline. I think the new market having enthusiasm is not bad. Longerterm, the investor this isnt the first time china has tried to create an alternate venue with looser regulations. We had the boom and bust of chinax. What is different this time . It is all about disclosures in the end. That is the process for us, represent chinese tech companies. Interesting change. There has been some concern about the quality of names is listed. With the company that with the country that has the most unicorns outside of the united states, not a lot of wellknown names. In terms of the first batch of companies, a lot of them are there not necessarily because they are the best Technology Companies in china, but often times the ones that are ready for an ipo. We have gone through a lot of the companies. Im on the Advisory Committee for the exchange as well. I would say it is pretty good. How much do you see shifting the balance of listing from new york and hong kong to Mainland China . The u. S. Is still an attractive place given the ability to raise u. S. Dollars. Will allent markets have a different focus. The u. S. , i think, if you are a large cap company, in the u. S. , it is the most liquid, broadest Capital Markets in the world. Hong kong obviously they have liquidity to the china market. Consuming if you are a company with unique business models, hong kong is probably the pick it probably your pick. Other companies, china is probably the best choice. From our perspective, it is always good to have more options. I think eventually chinese tech willnies and entrepreneurs move toward different selections. Bloombergswas selina wang with China Renaissance Group ceo bao fan. Coming up, deepfakes continue popping up across the internet. How one company is attempting to stop the spread of misinformation. This is bloomberg. Hey im bill slowsky jr. , i live on my own now ive got xfinity, because i like to live life in the fast lane. Unlike my parents. You rambling about xfinity again . Youre so cute when you get excited. Anyways. Ive got their app right here, i can troubleshoot. I can schedule a time for them to call me back, its great you have our number programmed in . Ya i dont even know your phone anymore. Excuse me . what . I dont know your phone number. Aw well. He doesnt know our phone number you have our fax number, obviously. Todays xfinity service. Simple. Easy. Awesome. Ill pass. This is bloomberg technology. Im emily chang. Back to our top story the Trump Administration versus china. The u. S. And china continue their trade standoff, the white house is convene a meeting of tech minds to talk about the tension. From a tech perspective, huawei and the Trump Administration desire to ban u. S. Government agencies from doing business with it Chinese Telecom giant. To discuss the latest, tom giles. We are still waiting from headlines from this meeting that is happening today at the white house. What is on the agenda of these tech ceos, we believe, were meeting with trump aides . Tom that is right. It is very much in their interest to have these restrictions as loose as possible. Their view is that we are leaders in chipmaking and other technology that we sell to huawei. We should maintain our leadership. We want to keep this market open. We want to continue to invest in u. S. Leadership in this technology. View,u know in their this does not represent a threat to National Security. This is a part of the global 5g buildout. This is not something we want to this is not an area where we think National Security interests are at risk. Emily the argument has been made that some sales to huawei should resume for consumer devices, like smart phones, laptops. But, perhaps anything that would be put into 5g equipment might be put into a different category. Tom it is not clear to me how the u. S. Is going to delineate between what is a threat to National Security and what isnt a threat. There is a view that if we slow the rollout of 5g globally and huawei is at the forefront of that, then everybody is hurt as a result. All the people who are investing in Wireless Technology that will benefit from the rollout of 5g will be at a disadvantage. That includes a lot of big u. S. Companies. Rollout inlow this order to accommodate the huawei ban. Emily there seems to be a bipartisan issue. You have republicans and democrats who are trying to push a bill through congress that would prevent huawei from being used as a bargaining chip in the trade war and keep this blacklist in effect. Yet, when you talked to a lot of these tech ceos privately, they dont believe that huawei is using its equipment to spy on the u. S. Perhaps this report from the Washington Post about huawei working with a Chinese Company to advance Wireless Infrastructure north korea might change their minds, but the people at the very top of some of these u. S. Tech companies have not seen any evidence that their products are being used in nefarious ways. Tom it is a big question. It is a conversation the u. S. Is having with its allies. We have just seen recently in the u. K. , they are holding off on a decision whether to impose a similar ban on sales to huawei there, for their business with huawei in the u. K. A lot of u. S. Allies, close allies, are asking that same question. Where is the evidence that huawei is creating back channels, backdoors for the Chinese Government to spy on our equipment . Where is the fresh evidence that they are stealing intellectual property . We want to see that in order to make a decision because there

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