Caroline im Caroline Hyde. Ed im ed ludlow. Caroline the president joins uaw workers on strike to discuss what it means for the ev industry. Ed the latest on the antitrust battles and the google trial continues. Caroline apples biggest start of the year. More on the product misfire. Breaking news around one Certain Company with regulatory requirements and ftc crackdowns. This the nasdaq is down one point 27 . Twoyear yields pushing up by two basis points. There is movement on the dollar. The vix is picking up with volatility issues. The ftc is looking into amazon. It is up from the lows of the day but down 3 . They are being affected by the Interest Rates and the selloff in big tech. Ed the ftc is saying that amazon takes punitive and causative actions of putting products of theirs about others are this is the fourth case against amazon specifically focused on the online portion of its business. This suit is what the ftc has filed in federal court. It has happened and now we go and ask, what risk does this pose to amazon. We know about the apple testimony and then we will get into the google antitrust case. Apple has product issues we will go over it with mark gurman. Tesla is now flat. It had been significantly lower when bloomberg reported that an antisubsidy pro will look at chinas support of manufacturing. When you focus in the United States is what is happening in wayne county, michigan. President biden expected to join the picket line. The uaw is in talk with the oems ford spared from the talks. Caroline lets get out to someone who knows about the auto industry. How will this affect the ev transition . We have not seen a president joined the picket line. How important is this and would it means to ongoing negotiations . That remains unclear. He is casting his lot with labor. We have seen a lot of labor unrest and activity and it feels like labor is on the upswing and the president clearly feels dovetails with his message about better wages for workers. It remains to see if there are breakthrough in talks because the automakers and the union seem to be at loggerheads. Ed ford has been spared from the expansion of the strike. Yesterday evening the union was upset with ford about idling plants. What is the latest tengion latest tension . Chester it is due to the expansion of the electronic the evs and it was with a leading chinese battery maker. The reasoning is unclear but it comes at a delicate time with the uaw talks. It is something the uaw has objected to. They see it as a preemptive strike by ford to prevent the unionization of those workers among other things. It shows you how volatile this old this whole mix is. It looks like there will be no shovels on the ground. Caroline this is a precarious balancing act, trying to Push Companies to invest in transition and has had share decent profits with workers. What has the investor reaction been like . Does it mean that maybe they need to realign were some of the money goes in the short term . Chester certainly Public Opinion seems aligned with the workers. Where investors stand is a little unclear. The stocks of gm and ford have been under a microscope dating back to the start of the negotiations at mid summer. There is a big question about how much they can afford and still make all the investments they need. There does need to be some recognition they will have to compromise. Maybe they give in on numerous share buybacks. The dividend is another matter. Ed he needs our industrials and cars out of detroit. At the core of this is the electrification of an entire industry. We are talking about where the money should go. Joining us is arcady sosinov. The Union Argument is lots of public money is going into the structure and the labor is not going with it. Your argument is that those jobs on the Assembly Line can be reallocated to your industry for example. Arcady to produce an electric vehicle is 30 less. Three years ago we had to battery manufacturing plants in the u. S. And today we have 30 plant two live. By the end of the decade will have 20 times the battery manufacturing capacity than we did at the start of the decade. The redistribution of jobs will happen. It wont impact everyone the same. It will go to paying more for jobs. Uaw strike against the oems is fundamentally about the uaw because they will not be there to support battery manufacturing as well as chip and semiconductor. Ed youre active in europe as well. Are you in a position where you are like the money is coming from the inflation reduction act. And the union that is worried about the workers future. Arcady we wont be able to take all of the demands the oems have to give up. Similar to what happened in the transition from fuel to solar, a lot of jobs went to highpaying dispersed jobs that are seeing great results. Kailey solar caroline solar is another industry highly dependent on china and are you seeing that same issue with barry making in the United States . We were just hearing from Chester Dawson about ford being blasted for putting on the battery putting the battery plant on hold. How much are jobs dependent in the u. S. On that relationship . Arcady there is a concern that some of the battery production and chips infrastructure will come from the chinese market. The Biden Administration has taken a look at that had of this industry and put tariffs on place for battery sales coming in from china and we have incentivized u. S. Manufacturing of chips and so we expect this market to play out differently than it did in the Solar Industry because of the incentives in place. We transitioned all production out of china. We have one single supplier left. The best geordie of other suppliers are coming from the u. S. And european markets the majority of the other suppliers are coming from the u. S. And european markets. Caroline so talking about making sure youre getting the right workers at the right time. Arcady in the u. S. , we use the incentives but in europe they use the stick and by 2030 you will be able unable to driverless you have an electric vehicle. The Business Model their works. 7 of all u. S. Sales for evs last year. As adoption happens, the Business Models turn and it works. I am encouraged to see what we do need incentives to get to the next two to three years while adoption is low, we wont need them by the end of the decade. Ed what a shirt assessment of the Lasting Impact of this . You are hopeful more people by electric vehicles and use your chargers but do you see a temporary halt in talks between the uaw and oems will affect production over the last 18 months . Arcady a lot of the demand will switch to tesla. They are so the largest producer of electric vehicles. While we will see fewer makes and models of vehicles from the traditional big three oema there oems there is still capacity to be picked up. Caroline we will combine those stories with teslas affect on eu subsidies as well. Of strikes, voice actors, performers who work in videogames here to authorize strike. The concern for videogame makers involves how Artificial Intelligence is used to recreate actors of voices and images. We will bring you updates as to whether the on that authorization. Ed we are going to go from what is happening on the ground with strikes to amazon versus the ftc on capitol hill. Also the big tech antitrust at large. This is Bloomberg Technology. Thanks to avalara, we can calculate sales tax automatically. Avalarahhhhhh what if tax rates change . Ahhhhhh filing sales tax returns . Ahhhhhh business license guidance . Ahhhhhh crossborder sales . Ahhhhhh item classification . Ahhhhhh does it connect with acc. . Ahhhhhh ahhhhhh ahhhhhh is it possible to fall in love with your home. Before you even step inside . Discover the Magnolia Home james hardie collection. Available now in siding colors, styles and textures. Curated by joanna gaines. Ed the ftc is suing amazon. Investigators have been working on the complaint for months which accuses the ecommerce giant of monopolizing online Workplace Services by degrading quality for shoppers and overcharging sellers. Lets get more. This is the fourth suit the ftc has put in front of amazon. Give us the specifics this time around on what they are claiming. Anna this is the big antitrust case. This case focuses on two different aspects of amazons business, at the ecommerce cells to customers and the way they sell and use their website. Caroline we got a response from the company criticizing the lawsuit saying it is wrong on fact and law and they make look forward to making the case in court. This isnt a real alignment of how they see them but not all caps the consumer the cheapest price but the way in which they go about doing it. Anna that is why this case is so important. A most famous lot review paper was written about amazons Business Practices and why current antitrust laws are inadequate to address the anticompetitive measure. This case will be a test of those theories, whether or not you can fit a different business like amazon that didnt exist back when the current antitrust laws from a century ago and whether you can fit it into current antitrust law. This will be important to test lena cons legal theory and amazons defense. Ed amazon had a Quick Response that merchants on the site have had this complaint against amazon for a long time and that is a onesided relationship. Ftc sue is in conjunction with 17 other states. How does it play out from here . Will it be long and drawn out or do we expect some quick decision to be made in the courts . Anna the seller aspect is interesting. Amazon is a competitor for the third parties and also a competitor. That is one reason why the a complaint that amazon is too much power over their relationship with their customers. We will see how it plays out in federal court. This will be an important test of the legal theory and we expect this to be a long process. Amazon had asked for lena con to recuse herself from this because of her past history of writing and investigating the committee the company. They are prepared to make their case. Caroline a programming note, the ft chief air leader lena con joins us live at three got p. M. Eastern time on the case against amazon. You can catch it all on bloomberg tv. Ed we are going to talk about the state of crypto regulation ahead of genslers appearance. This is Bloomberg Technology. Ed sec chair gary gensler appearing before the House Financial Services committee tomorrow to testify against regulation to the crypto area. Sonali the reality of the situation is the sec has a lot on its agenda and crypto being a part of it. Lawmakers facing a potential government shutdown. A lot going on. How do you win the attention over for the needs in the crypto industry when there are so many directions . Thank you for having me. It is a pivotal toll pivotal moment. We are bringing the faces and voices and americans who own and care about crypto coming to washington for the first ever stand the crypto day tomorrow. We have 50 Companies Representing thousands and thousands of jobs across the United States and they are coming to meet with their members of congress to talk about why they care about crypto policy and that is historic and it just so happens it is on the same day chairman gensler is testifying. Sonali what does this mean for the constituents down in washington. Are they will sleep preparing lawmakers or are they trying to in when back lawmakers not on their side . Kara they are trying to educate and help people understand why crypto matters to the 52 million americans who own it today in United States. That is something there are so many lawmakers that understand why crypto is important that there are a few outliers and some saying that this industry is rife with corruption and fraud and these folks are coming today to say this is my job and my family and my Economic Situation and your statements to consider how this industry as a whole is influencing the country and the future of the country and innovation. Ed i appreciate the education argument what is the end goal of . Is it oversight from eight legislatures from a legislative perspective . Kara this has an opportunity to pass legislation that will create a company has a framework for crypto. It is what americans are asking for. It is about Consumer Protection and enabling additive this as a whole. What we are here to talk about and we have had discussions across the country, they want to see legislation, whether financial innovation after the 21st century or the coin built that has been worked on over the course of the last year to 18 months. There is legislation on the table that Congress Needs to consider and vote to pass. A vote is vote for Consumer Protection and for americans who want to own and use crypto. A vote against it is a vote against the future innovation and jobs and economics and that is what will carry a lot of members through 2024. Ed a few weeks ago, the ripple cofounder joined us and he said above gary gensler at the administration level, the Biden Administration has chosen to dread the Blockchain Industries offshore. Is that a position coinbase shares . Kara it is certainly having an impact. There have been studies done where 2 of developers are going overseas. That means a million jobs by 2030. If you think about Technology Working for 20 years, you see startups, four to six jobs personal startup and that means 4. 6 million jobs going overseas by 2030. It is having a real impact where unelected bureaucrats are making decisions that americans ally on elected officials to do. I think the administration and others need to think carefully about how they proceed in the next 16 to 18 months. Sonali what are you most looking for congress to tackle first . You have a stake in the circle and that put stablecoins on the table more dramatically and there is this taking issue. Would you prioritize . Kara all of it. I think the comprehensive nature of the legislation is important because Digital Assets is not a onesizefitsall ecosystem. We have commodities, stablecoins, and what is a fledgling industry with Digital Asset securities because there is no pathway to registration the sec. We need a confidence approach. We are pushing for pieces of legislation and all three of those areas. Ed thank you. Caroline we will be talking more about regulation, antitrust, and google in particular. The lawsuit against amazon as well. Lee heppner will be joining us from American Economic liberties project. And macro strategy picking up another 150 million with of bitcoin. This is Bloomberg Technology. Bloomberg technology. Ed ludlow in san francisco. Caroline Caroline Hyde in new york. Ed President Biden has touched down at the Detroit National airport and he will later be meeting with uaw representatives, joining the picket lines at the invitation of the uaw and meeting with local representatives and the talks ongoing, gm and stellantis are the Sticking Point and ford was expanded spared from the expanded strike. President biden on the ground. Caroline lets get a quick check on the markets as we will discuss what is happening with autos but more broadly as we see what is happening in the technology field. The nasdaq 100 is underwater. What the borrowing costs are happening, the two year yield, two basis points on the high side and about the 5 point level and bitcoin is on the downside, the story of Dollar Strength even as we see some slightly weaker Economic Data but the Dollar Strength has been a narrative we have seen over the last few trading days. Tmobile is one of the key outperformers, up 8 10 of 1 . Seems to be a delay of the 3. 5 billion airway purchase that dish will do from tmobile. Amazon is on the downside as the ftc is making clear its intentions and deciding to lay focus on competition when it comes to amazon. We see the same with alphabet and we understand one person will give evidence over the global trial google trial. Lets go to capitol hill to defend what is of who google a lucrative deal to make googles Search Engine the default on the iphone. Lets bring in someone for more and we have someone talking up the trial. The argument being, he says it is a better product and that is why they have taken payment and made it the best default search the default search. He is saying that if we at apple would have made a better product, we would have done so. Apple is saying, we are happy to use google as the default because it is a better product. Caroline can you outline how many billions google is playing. Paying. Is it here, have a billion dollars or so or is it take a percentage of our advertising revenue and that is something that is happening with competitors . Molly these are confidential numbers but what we know from early court proceedings, 2020, google is paying four dollars to 7 billion for these agreements and overall they get 10 billion annually to be the default on the web and phone browsers so it is a significant chunk for them. Companies like apple, they get the revenue that is generated in the search results. Ed if you come to the story cold, you would be confused. This is about google, its decision by apple to use people search but there is a broader google antitrust story, what are the other battles that alphabet, the parent company, basi