Push to the big names ahead. Ed plus we sit down with the head of kkrs Tech Growth Fund does see where his firm Sees Opportunities after they raised 3 million. Caroline we will wrap up coverage from new york tech weekend here from two venture capitalists on what they are choosing to invest. At that is the private side of the market, lets go to the public because we have a clear flight to safety as we had to wear the weekend. Geopolitics the main noise we are currently having to digest and see and witness. We are currently seeing the nasdaq up by more than one percentage point as we worry about conflict expanding in the middle east. 10 year yields see money move into the bond market, eight basis points to the downside on the tenure and crude pushing on the higher side, 90 in terms of oil so a key signal to some of these volatile times. Lets have a look at what is happening in terms of volatility of the key tech asset class. It is crypto, 29,000, at one point again we jumped over that 30,000 level. As we have seen earlier where there is much anticipation, wrongly seeming about an etf coming thick and fast and sec approval, there that is not there yet when it comes to spot big when etf but there seems to be some hope this is what we will see in the near term and maybe this is seen as some quality purchase at the moment. What are you watching at the moment . Ed tesla is the single name stories of the week. We will go deeper later in the week with our reporter but you can see the drop clear as day following earnings, thursday was the biggest drop since early july but in aggregate on five days, tesla is on track for its worst week of the year. A lot of refocus on the growth narrative. Elon musk talking about rates. We will bring you details. The earnings story will continue into next week because we have most of the mega caps reporting next week. If you think about the big five names, four of which are on this board, earnings on average are forecasted to grow 34 year on year at a time when the s p 500 overruled overall is forecasted to have flatter earnings growth. A lot of hope end on these big tech names but you then go back to the macro, what is happening in israel hamas war because that is impacting Financial Markets broadly and these are some of the biggest points movers to the downside in fridays session. Largely driven by israel. Caroline and fresh concerns regarding the conflict. Lets dig into what President Biden himself was saying last night on a direct appeal to the American People to score funding for israel and ukraines war efforts. Take a listen. Pres. Biden hamas input and represent different threats but they share this in common, they both want to completely annihilate neighboring democracy, completely annihilate it. There are innocent people all over the world who hope because of us, who believe in a better light because of us, who are desperate not to be forgotten by us. And our await ding and are waiting for us. Time is of the essence. Caroline we want to discuss this with nick wadms. President biden is appealing for more funds to be allocated at a time where there is no speaker of the house. Bring us up to speed with the concerns we have about an escalating conference conflict across the middle east. Nick that is the big question on everybodys mind right now, we are exciting israel could launch a Ground Invasion into the gaza strip at any time and the u. S. Is saying they want to show their full support for israel while also wanting to avert a humanitarian crisis or further humanitarian crisis could further exacerbate tensions in the arab world and potentially draw in hezbollah fighters and maybe even irans. You saw the president ask for more than 100 billion in funding last night. That money would go primarily to ukraine, but there would be about 14 billion for israel to supply it with munitions and other weaponry. Aimed mostly at missile defense, so the concern is israel israels iron dome system will be overwhelmed in the event has below launches a fullscale missile attack. So a complicated and tricky tightrope for the president to walk on pledging support for israel but hoping to avoid the humanitarian crisis. Ed you lead our National Security coverage at bloomberg and the show is bloomberg technology. You talked about iron dome. In realtime, across the middle east region, there is literally conflict. The United States has bases in several countries where they are dealing with missile attacks and thinking about the response. They are engaged in active military operation. Could you explain to our audience what is happening across the region . On friday as we speak but also heading into the weekend. Nick well, the primary issue obviously is impending israeli Ground Invasion but you did have the situation yesterday where the u. S. Reported three incidents where drones, they notice what they called an uptick in hostile drone activity , so drone attacks on u. S. Forces stationed in iraq and syria there were minor injuries reported but while the pentagon was trying to say these are isolated incidents, what you see is a more hostility toward u. S. Forces in the region and concerned there would be the u. S. Itself would be pulled into this war. The administration has been flowing military assets to the region, they knocked down three cruise missiles from who the rebels in yemen but you are seeing this greater u. S. Involvement and that has raised concerns the u. S. Could possibly be pulled into this. Administration is saying we would not put boots on the ground, but they have been sending more fighter jets, obviously aircraft carriers. There is the concern that as the u. S. Looks to deter iran and other actors that itself it itself could be drawn into the conference. Ed nick wadhams, who leads our National Security coverage out of d. C. , thank you very much. I want to stay in the world of geopolitics and talk about new u. S. Rules aimed at restricting Cutting Edge Technology going to china. They really hit shares of one name this week which is nvidia. You see it on a five day basis, down 9 . The worst two day decline in the last two sessions in more than a year. The u. S. Threatened a fifth of u. S. Revenue which comes from china, particularly in the data center context. This is a stock trading at its lowest level on track for its weekly worst weekly decline since the week ending september 2. It is a timing issue because its stock is up more than 100 100 yeartodate and had been the name and ai. Caroline and thats the context, how far the stock run has run. For we see the euphoria around the statement particular to Artificial Intelligence has gone too far into fast. Is it a 1 trillion opportunity here in terms of its own market capitalization . Is time that shes time we have seen the pullbacks further and you ended up being burned, if you sold off and we can ask kathy witt about that as she downplayed the name since the start of the year but it does feel like this has been a turning point the last five days. What is so interesting as you pointed out time and time again this was not new news to a larger extent. Ian had been reporting on month or so ago it is likely these particular chips designed for china would end up being swamped by what is a geopolitical context. Ed this weeks trading has been a surprise because in june ian did report the u. S. Would expand to include a 800, the china chaps, and it happened and nvidia was supply constrained, they can ship the gv is gp was elsewhere. Shares of tesla could be facing one of its worst weeks after posting disappointing thirdquarter results. More on that next. That stock down 15 on the week. This is bloomberg technology. Its easy to get lost in investment research. Introducing j. P. Morgan personal advisors. Hey david. Connect with an advisor to create your personalized plan. Lets find the right investments for your goals okay, great. J. P. Morgan wealth management. Ed shares of tesla falling today after missing three q sales and profit estimates. The ceo dialed back on growth expectations. The stock down as much as 15 , more than 15 so far this week. As we set on this program already today, that puts tesla on track for its worst week of the year on a Weekly Performance basis. Lets bring in sean okane out of texas who was all over these earnings and lets start with the basics. Margins, worse than expected, missed on eps and sales. Give us the numbers. We see an adjusted automotive gross margin when moving the regulatory credits of 16. 3 and that is a figure everybody has been focused on all year, ever since cuts began. How much of that profit was tesla going to eat into to keep demand where they wanted it to be. We knew they had shut down the factories for upgrades this quarter, we knew there would be some pullback in some of those numbers but it all wound up worse than expected. For me, the thing i keep coming back to is there theyre operating margin is down to over 7 and in january this year, at the time the still cfo said that is the number they focus on the most internally as a Management Team and they wanted to push in front of the street and say you should focus on this, less about the gross margins, which will be volatile. That operating margin is now lower than it has been in the last two years and way off of its high of 29 . Definitely harsh numbers. The real question is how much can they picked out that up in the following quarter. 475,000 cars out to hit their one million target for the year. That is something they can do, it is not an and normas jump compared to the last couple quarters, but we will see where it goes. Caroline adam jonas, one of the most bullish analysts out in terms of price target, he has been saying this is the read across for the rest of the ev market and if tesla is hurting that look at everyone else. He does think this is shortterm pain, longerterm the focus is still there. They will be able to boost the overall volumes, but are people thinking this is a car company then tech company at the moment . I think it is its valuations show people are expecting more car company plus i guess you could look at it. One of the Big Questions i think moving forward in this quarter and 2024 is we heard a lot of talk the other night about costcutting. It really sounds like tesla is doing less boasting about costcutting as they have in the past and coming up with innovative ways to lower the costs on their side. Now it unlike they are racing the price cuts on the consumer side with these cost cuts internally, so can they cut or cost out of the car as fast or at least nearly as fast as they are cutting the prices on the front end . I think it seems theyre probably getting to a point where there is no return, they have cut so much cost out of the car is very until the next generation platform comes out, it will be cheaper to produce. I think we are ending or coming to a head with this generation of cars built on this platform that has been around for many years. Caroline great breakdown, we thank you. Looking at the tumble when it comes to share prices of tesla, x, known as twitter previously, is launching two expensive plans, eliminating apps entirely. This comes as they begin testing of the one dollar pays of script and fee. The new accounts in an effort to cut out spam and bought accounts elon musk was so frustrated about. Ed so many options. Lets get to other earnings out there this week. Netflix, the streaming service, posting its best quarter for subscriber growth in years when it reported earnings the other night. The company credited the strong programming slate but also its crackdown on password sharing, joining us is alicia reese. This was one of the things where we talk about the other stuff, advertising, content, strategy, than the subscriber numbers hit and we go back to the only thing we care about is subscriber numbers. What was the main takeaway for you . Subscriber numbers benefited strongly from the password sharing crackdown. You have the families who chose to add their extra members, eight dollars per month in the u. S. , similar elsewhere. And that his grandma, kids going to college, aunties, boyfriends girlfriends, everybody who once sat on to the account and didnt want to kick off, that is a boost and then all of the people who got kicked off our joining for their own accounts and often on the end here and that is pulling our crew down but that is boosted subscriber numbers. I think the most important part of the ad tear by itself is it is reducing churn. It would give people who would otherwise turn out for a period of time because there is no content that they want to see and pay for, they can lower their monthly fees and go on the ad tear for a. Of time for period of time. Caroline meanwhile, like with tesla, they are trying to calibrate the cost of the business and the fact they have pulled back on content and are releasing things more specifically, is that the right tactic to go for the moment . I think so. There are two things benefiting netflix right now. Before the hollywood labor strikes, they had already reduce content cost. All of the streamers had. They are reducing volume and netflix was guilty of basically buying everything they possibly could and seeing what stuck on the wall. Now there are lab they are a lot more focus on quality of content instead of the volume of content. The volume really just makes the user, it takes too long to find something they want to see and having the quality shows is what really is good for retention. Their focus on quality and also focused far more on efficiency of content. Using the global content that can cross regions, squid game was the first major one they saw how well that worked. Now, with the strikes, they are looking at more licensed content, they have not used this strategy in a while. They have been doing exclusive content and original content, and recently they licensed suits. This is an old show and it did really well. And they are working with warner bros. Discovery, unlicensed and content that is on max and this is no longer exclusive but it is doing well on their program. Warner bros. Needs the money, netflix has that you are viewership, it is a winwin situation and i think that will help netflix to continually expand its free cash flow. Caroline netflix remains on your best ideas list as they seem to be pushing to the future as you like to say it. Alisa riche, great to have you on the show. We appreciate it. Lets stick with earnings because today American Express reported world record revenue for the third quarter, record profits as well. Ultimately a company that is managing to attract new cardholders, particularly gen z, millennials they hope will continue to build over the four feet foreseeable future. The stock is down a little as many look towards perhaps some of the small to mediumsize Enterprise Spending and business spending. I spoke to the ceo a little bit about his own Business Investment and ed of course about Artificial Intelligence. He was talking about this as a game changer saying if you do not adopt that you will be left behind. Hes not saying he will take your jobs but saying if you dont have your workforce ready for ai, they will be in a sort of situation. Ed think about the volume of data they have to play with in terms of behavior. Coming up, a bright day for cryptorelated stocks as the price of bitcoin climbed above 30,000 u. S. Dollars. We will discuss with sonny singh, the cofounder and ceo of a new company, beluga, as the crypto platform seems to ask sees to expand its presence. This is bloomberg. Good night hey corporate types. Would you stop calling each other rock stars . Youre a rock star. You are a rock star. No more calling coworkers rock stars. Look, its great that you use workday to transform your business. But it still doesnt make you a rock star. So unless you work with an actual rock star. Hi, im ozwald. Hello ozwald. Pam, you are a rock i wasnt going to say it. Caroline lets speak about crypto. Some of the optimism around bitcoin again being shown as it managed to crack through the 30,000 level once more. This again is about the hopes it might be able to see a spot bitcoin etf come to the market if not one two at the plethora put forward. We understand at the moment we are seeing this brought a rally but looking toward gbd see in particular grayscale, trust, they could be adc court ruling on that atf application as soon as today. The sec asked a federal judge to dismiss the case against ripple executives and there seems to be this mood music shift so we will see grayscale prevail at the end versus the sec. The sec backing down and ultimately this hinting we will see etfs being adopted sometime soon. Ed lets have some more bitcoin chat, caroline. Our next guest is so confident about the growth of crypto, he is predicting bitcoin will only preach its 69,000 high at some point next year but go beyond 100,000 per token. Here in the studio, the cofounder and ceo, the new company, beluga, which raised 4 million which we will get to. Why so confident . What are you basing this call on . Its great to have young again. When has become resilient. You see it go up while the markets are going down and exterior we have what i would say is a perfect storm. Three things happening, the bitcoin etf which you are talking about, sec is going to relent on this one, delay as much as possible, but by q1q2, you will have an etf live. Then you will have Interest Rates hopefully coming down next year too and third, the most important, the bitcoin having happening in april. Normally after that, four to six months after, you see the bitcoin price rocket. Last alltime high was six to 9,000 after the bitcoin having four years ago. I think we take that out and we reach 100,000 next year. Ed larry fink, the ceo of blackrock, you probably know, outlined this idea based specifically on the events of the last week that bitcoin is behaving as a haven asset based on everything happening in the world right now. Do you believe that . Sonny yes and no. This has been working this way the last couple weeks but during the pandemic it did not work out that way. It is like a risk stock. That narrative have has proven true sometimes but not other times. The other three events next year are more importantly as what will drive price up next year. Caroline still i think the entire market looks at larry fink open mouth with the about shifty has seemed to have had around bitcoin and he says customer driven. Im interested in what you are doing about customer driven to your new enterprise, beluga, you av been raising funds, 4 million, ultimately we talk about institutional adoption and retail having pulled back. Ho