To agree on terms of the deal according to sources. We will discuss that and much more. First, we check on markets. Calm before an earnings storm. Nasdaq up. 1 . A lot of auctions on deck when it comes to debt in the United States and what that means for supply and borrowing costs to the high side. We are steady at 4. 62 . What of chinau. S. . We will dig into that. The vix at an 18 handle. We have seen less of an aggressive bid into risk assets. We are still up broadly. This is after the halving without a hitch. A pullback in Bitcoin Mining may mean an uptick in prices. What are you watching . Ed a firm focus on tesla. We are at session lows down 4. 6 , down for a seventh straight day. Price cuts around the world over the weekend. Layoffs continue. Fsd down to 8,000 in the United States. We will bring you the big take later in the show where we have reported new information about the layoffs, robotaxi, cheaper ev model. In 24 hours, we have one of the most important earnings calls in teslas history. The other big story we are tracking is the divest tiktok bill on the hill. We passed at house over the weekend. The expectation is it will pass the senate in the coming days. Our researchers are saying there is a 90 chance it will go to the senate and be passed into law. These are publicly traded social media names. The landscape for social media in this country is front and center this week. Caroline also, what is happening abroad. The e. U. Opening a new investigation into tiktok. The senate is expected to vote on the legislation requiring tiktoks Chinese Parent Company to divest ownership stake in the app. President biden has said he will sign the legislation if it gets through. It looks as though this is kind of a done deal now. It does. This bill passing seems almost inevitable. President biden has said he will sign it immediately. Tiktok is already scrambling. Over the weekend, we broke the news the general counsel in the u. S. For tiktok who has been in charge of convincing the National SecurityInteragency Committee that tiktok are doing enough to prevent user data from getting to china is being pushed out of his role. Changes are happening internally. The company is sending memos to employees promising if the bill passes this week it will not be the end of the story. Finance and tiktok both intend to fight this to every extent possible before considering divestiture or separation from the parent company. Ed i talked about the Bloomberg Intelligence assessment of whether this will be passed into law, 90 . Other analysis is if there were to be a legal challenge by tiktok and u. S. Users, they assign a 70 chance the u. S. Government will be successful in court. Over the weekend, we had internal news at tiktok. What else have you reported . Those pressures on the legal side, it is interesting to see those numbers. There are a number of legal avenues tiktok might take. We saw that when montana looked to ban the app stand behind users that suit. There might be Small Businesses or other organizations that feel they are being harmed. The pressure is on the u. S. This morning, the european u nion opened a new probe into the new app. You are not only dealing with this inevitable passage of the bill that Bloomberg Intelligence puts at 90 passage, you are also having to fend off continued pushes for fines, scrutiny over privacy, and just the unprecedented attention this move by the u. S. Congress has made and perhaps has gotten lawmakers in other geographies thinking if the u. S. Is doing this, should we be taking a closer look . Ed alex barinka literally minute by minute reporting on this. It will be a busy week for you. Lets the founder and ceo of the ecommerce marketing platform for multichannel brands. You understand the users interest in tiktok, the potential of tiktok, and the competition. I talked about the chances of this bill passing. I believe you see it passing as well. Absolutely. It will be the big headline this week that the ban will likely happen. We do not believe this is the end of the story. Tiktok has become one of the most powerful platforms in the world. On any given day, we see tiktok as our second most trafficked platform. Meta number one, tiktok number two. Tiktok did not intro the cultural site diced until 2019. Fastforward to today, it has leapfrogged youtube, snap, pinpricks pinterest, and x. We do not believe this will be the end of tiktok. Tiktok will fight this the way they did with trump in 2020 montana last year. It will create time for divestiture to come to light. Why wouldnt walmart or met to make a land grab for this . Caroline because china will not let them. China might not sell it or would not let them have access to the technology. Maybe they are able to buy it in the u. S. They still have a year if this goes past the senate, they have a year to sell themselves. To any of the 1200 brands that use you start to pull back on their investment in tiktok at all . This have been part of the dialogue for the past year, that a ban could happen. For some advertisers, we have seen a slight pause. That said, tiktok traffic at mikmak has grown 40 yearoveryear. We continue to see fortune 1000 brands invest in the platform. Not only are they investing in it from an advertising standpoint, they are starting to invest in terms of a standalone commerce channel with the advent of tiktok shops. We are not seeing brands pull back. The reality is with advertising, it is easy to turn on and off. We saw this happen with meta, youtube, x, so brands have options. They will reallocate spend two other social challenges or platforms like roku. I am not overly worried about what will happen in the advertising landscape. There are plenty of options for brands to drive reach and conversion. Ed over the weekend, elon musk, the ceo of x, gave his opinion that tiktok should not be banned in the usa even though such a ban may benefit his own platform, x. Therein lies the value of it. You talked about the ecommerce side. 50 of americans use tiktok. That is scale many other platforms do not have. Absolutely. It is what tiktok is our second most trafficked channel at mikmak. Meta is number one. There are few places to reach all u. S. American households. To reach 50 of them with one ad buy on tiktok is extremely powerful. We are talking about setting a precedent that interferes with the first amendment, which is why we believe if things can play out, a divestiture is most likely the best outcome for everyone. Bytedance might not see it that way. But in terms of the u. S. Government, if i were them, i would be pushing for the vestige are. Divestiture. Ed i misspoke. I said elon musk is the ceo of x. He is not. Given the last seven days and the number of Companies Elon Musk is ceo of, i think the world will forgive me. Rachel tipograph, thank you for your analysis. Elon musk is shifting his focus to the robotaxi. That is coming up next. Caroline lets take into what was happening on friday. Remember when nvidia was down 10 . Today, it is up but only 1. 3 . We are fading some of the rally in tech. This is bloomberg technology. grunting at morgan stanley, old school hard work meets bold new thinking. laughter at 88 years old, we still see the world with the wonder of new eyes, helping you discover untapped possibilities and relentlessly working with you to make them real. Old school grit. New world ideas. Morgan stanley. Ameritrade is now part of schwab. Bringing you an elevated experience, tailormade for trader minds. Go deeper with thinkorswim our awardwining trading platforms. Unlock support from the schwab trade desk, our team of passionate traders who live and breathe trading. And sharpen your skills with an immersive Online Education crafted just for traders. All so you can trade brilliantly. Ed bloomberg big take. Tesla consumer chaos among the shift from new, cheaper models to clearly a robotaxi. We tried to clarify what is going on. My understanding is this is elon musk. He has said robotaxi is the focus. A cheaper ev is not completely scrapped. But it is confusing. You have read the big take. Did we give you clarity on where we stand . Caroline you did. You highlighted how much we have seen reorientation of elon musk. You articulate so well some of the negatives felt by people let go of the company. Ed one clear thing is loads of executives at tesla said please do the 25,000 ev. Elon said no, we are doing robotaxi. Theres is a difference in philosophy. It is not canceled or scrapped. It just looks different. A lot to be discussed. Caroline this is a cheaper model for other purposes and a more wide reaching Company Investors are trying to get their hands around. Share prices reflect that. Craig, your key takeaway, what are the priorities . The priority now is robotaxi but for the greater good . Yeah. I was talking with some of our colleagues. I think the idea that maybe elon may make the case to wall street tomorrow that we already have a 25,000 car. When you take into account gas savings and tax credits, the model 3 after the price cuts of the last yearplus is getting close to that. I think what we will see from tesla in the months to come is this attempt to further emphasize the value they are offering with the model 3 and the model y and apply some of the work they want to use to underpin the robotaxi to bring those costs down further. I think the real question is whether or not that will cut it for wall street. They want to see some new product. Ed we tried to give clarity on that. We tried to give clarity on the layoffs. One source put it to me that deliveries were down in the First Quarter so musk said if deliveries are down 20 , lets just cut headcount 20 . Not for any reason to do with cost saving necessarily. This is likely elon musk playbook. When you edited the big take, i hope you got the sense that this is elon musk pulling the strings on this. It takes me back a little bit to the Walter Isaacson biography. I feel like the word elite was in the book at least 50 times delete was in the book at least 50 times. When Companies Run into trouble, he wants to cut everything and get rid of everything and question why companies are doing things, building things. Why do we need that component . Why are we doing this process . I think the question is whether he has cut to the bone. We are even seeing questioning of whether or not he is doing that in the price cuts over the weekend, whether they will be earnings left in china in terms of how far they have gone with the model 3 and the model y in that market. Caroline the key point here is we all think about the Bigger Picture and look ahead to the micro. In a little over 24 hours, we get the earnings. Ed in 24 hours, we will have earnings bingo again. We will have one of the most important earnings calls in tesla history. What are you watching for . As much hype around ai and full selfdriving as we can possibly imagine, i think that is the expectation because there are not many other cards to play. Caroline Craig Trudell with important reporting, thank you. Lets get into the earnings across the tech sector. I understand you have some exposure to tesla. Have you felt the market has priced in some of the worst for a businesslike tesla . I think broadly speaking there is still some downside specifically because some stocks have been driven by momentum. It has been a pretty big decline we have seen in tesla. Clarity is not there. Broadly speaking from the magnificent seven, this earnings season, they have a lot to prove. Valuations are very elevated. If we do not see this come through from an earnings perspective, i think there is more downside and more of a correction. Caroline what i love about your analysis is how deep you go on how powerful and encompassing those magnificent seven players have been. Five of the seven have expected to be the top five contributors to yearonyear Earnings Growth for the s p. If they do not give us what we need, earnings more broadly will fall across the s p. It will definitely be weaker than the anticipation right now. The anticipation is only for about. 5 Earnings Growth. Theres a lot riding on the magnificent seven. I think that is why the markets are up a little bit today but moving sideways. They are waiting for earnings. There also waiting on the pce later this week in the first read on gdp for the First Quarter and the first read on gdp for the First Quarter. Ed there is a ubs note this morning doing the rounds. A lot of people are talking about it. They have cut on the big six to neutral from overweight. They are saying tough comps this quarter. I think they are surprising suggesting if you go away from the big six or mag seven, there are other corners of the market to play in. Do you share that thesis . Absolutely. These stocks have had a great run. Valuations are very high. People are looking outside of that to make money. Not just in the large cap space. But in the small and midcap space, i think there is more value. They have not participated in the rally in the large cap space. From a longterms protecting longterm perspective, they are historically cheap. There is a lot of uncertainty around earnings in the next couple of quarters. If you can withstand that volatility and look longerterm, these may be opportunities in the market. Ed there is quite a lot riding on earnings this season. Lots of people say if earnings do not deliver for us on the big six, mag seven, tech will fall away and the market will go with it. We like drama on this show. But realistically, how worried are you about the stakes in the coming weeks . I am quite worried. We had a little bit more than a 5 correction in the market the past couple of weeks. That was not enough in my opinion to look at these elevated valuations and take all of these mounting risks we have from an economic standpoint, geopolitical standpoint, Federal Reserve standpoint. I think there is still too much optimism about what the could do. The bigger risk is, what is inflation going to do . Are we in the midst of a reignition of inflation . If that is the case, these valuations and expectations are not sustainable. Ed really appreciate your time on the show this morning. Coming up, australia is gearing up for a showdown with elon musk. Caroline no, no ed i am sorry. I cannot help myself. Caroline lets get out to the rest of the earnings space. Verizon falling hard, off by more than 4 , even as they beat and list estimates for profit. Maybe there was some worry about operating revenue that beat missed wall streets projections. This is bloomberg technology. How am i going to find a doctor when im hallucinating . What about zocdoc . So many options. Yeah, and dr. Xichun even takes your sketchy insurance. Xichun, xichun, xichun youve got more options than you know. Book now. Caroline calls are growing for a crack down on x in australia after two knife attacks in sydney. Graphic content from the stabbings as well as misinformation spread quickly. That has prompted five government ministers to consider tougher laws for social media companies. Tencent shares staged a big rally since december. Now we know chinas biggest Internet Firm has an earlier than anticipated debut of the game to draw in new users. Japans under trust regulator has its eyes on google after his has the tech chinese used tactics that limited yahoo japans ability to compete. Alphabet changed their conduct as soon as they flagged the practice but they will keep on monitoring the u. S. Firm. What are you looking at . Ed we will be joined by the bitcoin cofounder to discuss bitcoins halving. Im also looking at shares of apple. This is a market mechanics thing. We are off session lows but apple is named as a topic for 2024 by bank of america. Oldschool story, big balance sheet, great cash flows, kind of dull in the context of technology. That is how we have been talking about apple. Earnings are just around the corner. How exciting. This is bloomberg technology. Exemption certificates or filing returns. AvalarAhhh Ahhh Ahhh ahhh apples next big thing is aversion to larger language models. Apple has been working on several Major Projects including irobot and augmentedreality glasses. But the biggest and most important project is a push into generative ai. Apples approach will be given that the competition, like google, openai, and meta. Consider powering it instead of pounding it on cloudbased servers, it will function on the iphone itself, using the ondevice software and other chips. That makes it quicker, more secure, and apple believes more functional and accurate. With iphone 18 coming in september, apple plans to include a slew of new ai features that will help users in their daily lives. Im mark gurman. This is power on. Ed lets get a check on the markets. One asset we havent talked as much about is bitcoin. Halving has occurred. As such, it cuts in half of the rewards paid into miners. 65,000, 66,000 u. S. Dollars now. Where we are seeing a more delayed reaction is the assets that do not trade 247. In other words, the u. S. Traded equities or stocks that are cryptolinked. Riot, another blockchain platform, up 9 . Some moving to the downside. Marathon Digital Holdings down 3. 9 . There was a headline that the halving was a bit of a limp but i think we should be excited about it. Caroline still parties, virtual or in real life. I want to know how many of those invites you went to, ed. One of the persons posting those halving parties is chris klein. You watched it happen when it occurred on friday night, but now the reality is maybe there are some players, miners out there that dont get rewarded as much. Ultimately this is meant to drive the increase of bitcoin prices. Will it . Absolutely. Thanks for having me. We had some good parties last week for the halving. It does punish the producers of asset class. You will see headlines this morning that he came off with a whimper. That is pretty typical for halving events. It is three to six months where you see the impact of that supply constraint that takes place. Ed supply constraint has not yet taken place. I want to focus on that for a minute. I think you guys had a pretty good quarter, and actually since the start of the year, whether you are focused on the Underlying Technology or you are a participant in the marketplace for cryptorelated