Markets, cautiously up on the nasdaq at the moment,. 3 . Big week. Weve got the fed, all important claims, jobs data on friday. We are seeing a 10year yield of diving back four or five basis points ahead of the Federal Reserve and where we see the economy and the Interest Rate environment going. Notably, a lot capturing the attention in japan at the moment. Some of the training is going to be more muted, but with the yen its big volatility over the dollaryen, which goes higher. Was it japanese boj intervention . They remain mum on the subject. Bitcoin, down against the u. S. Dollar by 1. 25 with a risk off yield more generally and etf frozen. What are you looking at on the micro . Ed tesla, which is a big, almost surprise story. Just a few tenths of a percent away from its biggest jump since january of 2020 two. Similar to the gains we saw april 24. Full self driving in china according to a bloomberg source. Two subsets of that. A partnership with baidu on income mapping, specifically for the china market, and an agreement over data privacy or terms on data privacy that would allow it to move forward with fsd. Big reaction in the market. Elon musk went to china over the weekend and met with the premier, a surprise seven days after he bailed on india. Theres a lot to unpick in this one and its a move higher in the tesla stock. Catherine bloomberg, of course, all over this story. It was a surprise and it looks as though the meeting for fruit. What does it mean for the robotaxi Autonomous Vehicle future that he paints . We have to separate out robotaxi and what tesla calls. Driving. The nomenclature has been a misnomer. It is a driver assistance system. When you activate it, you are in control of the vehicle and are responsible for supervising it. If you do get into a crash, tesla has shown a tendency to turn around and blame you, the driver. There is a big difference between this system that tesla calls fsd and the robotaxi that musk has managed to get wall street excited about, despite the fact that hes been talking about it as a concept since 2016 at least. This is a Big Development in the sense that fsd, for all of its shortcomings, and the progress that he to be made to be more widely used and accepted, its bringing more incremental revenue but only in certain markets. Something they cause charge for. If you can make arrangements to get incremental revenue out of customers in china, it could boost business there at a time when it could sorely use a lift. Ed best as i can tell, you have been coordinating our teams in china, the u. S. , and europe. Explain the chronology of what happened. There were multiple stages to arrive at this . Craig we heard rumblings that was going to make this he was going to make this trip and lo and behold we wake up to the idea that yes, hes landed. It was surprising in the sense that tesla doesnt even have a presence at the beijing auto show. It got underway last week, but certainly it was a timely visit in the sense that there were a lot of government officials in town for the show. The Auto Industry has been a bright spot for the chinese economy. The chinese relationship with tesla has been really positive. Its a success story, even with the challenges theyve had lately with continuing their momentum in china. Caroline market share eroded to none other than byd, the local competitor. Remind us of the deals that have had to be done with chinese players, ultimately, to be able to get the granting. Craig the key one flagged by ed is with baidu. Its been interesting because elon musk has been on the record for years now saying that tesla doesnt need maps. Its a crunch. If you forgive a car upon, from this stance, its not necessary. In china, for you to offer these kinds of systems, you need to have a partnership with a mapping and Navigation Company and it just so happens that the companies able to offer those services are chinese. In terms of how they control the electric vehicle battery market, in the more infant years of the ev industry for china, it really was successful in helping to kind of build up world dominating Companies Like cat l. They are looking to kind of replicate that pattern with companies that play a Critical Role in these Driver Assistance Systems that one day may be able to support fully taking the human driver out of the equation. Ed what is so interesting is that baidu is so confident in the domain of developing autonomous technology. The stock is on track for its biggest jump since january of 2022. Perceived good news, more nuanced views in the market about what hes doing here. Elon musk saw the opportunity to say lets go in there, i want to do this. You have seen the clashes between the u. S. And china. Hes trying to put a foot in both sides to say i have got this technology. He had the premium brand and suddenly the evs started to get less expensive and tesla lost share. To me this is a way of saying im going to change the math for myself and if i can be successful in this, maybe i get to be the outlier. Ed that was sarah hunt, earlier on bloomberg surveillance. We have a strong piece on the terminal right now saying hold on a week ago elon musk was supposed to go to india and he bailed. Now hes gone straight to china. He shows us the Power Dynamics and the skill in all of this, navigating geopolitics. Caroline yeah craig yeah, that has been mutual backscratching for years now. Tesla was the First International foreign car company to be allowed to operate in china without having to read to a joint venture with a local manufacturer. It was a huge win for elon musk and something that he fought for for years. The construction of the plant for tesla was record time. Extremely timely in the sense that musk was really ramping up the model 3, trying to remodel y out. They were able to keep the plant running even during pandemic, when other plants in china had a difficult time opening back up from the initial shutdown. So, china has very much supported tesla when tesla needed it most. We are seeing u. S. Companies pull back a bit from china, maybe at least derisk a little. Apple did that in india. A similar move. Its clear that musk doesnt see the urgency to do that. Ed terrific reporting, thank you so much. Another story close to this one, u. S. Auto safety regulators investigating the ford a blue cruise assistance driver feature after a pair of fatal crashes involving the technology. The office of defect investigation opened a preliminary evaluation after receiving notice of two suvs that collided with stationary vehicles. We will continue to track that one. Caroline notable. Coming up, look, got to turn our attention to another key stock on the move. Paramount, announcing its own ceo ousting, potentially, a head of a potential purchase of the business. We will bring you more. This is Bloomberg Technology. Ed talking tactic, the Supreme Court rejected an appeal from elon musk over the socalled twitter sitter, overseeing social media posts about tesla. Without comment they refused to hear contentions on the accord that he signed into thousand 18 that he says now violates his constitutional freespeech right. We will track that one. The apple ipad has been hit by the digital dominance crackdown, added to a list of big Tech Products and services hit by the rules. It means that apple has six months to make sure that their tablet ecosystem complies with a raft of preemptive measures under the Digital Markets act. David ellison has offered concessions, as well as the redstone question, to make possible control of paramount global more appealing. The sky dance bid was described as a best and final offer on sunday. The paramount board is still undecided about entering the deal with ellison given the opposition from other investors. Caroline theres a lot to consider and chris has been reporting on it all weekend. We understand the board is wondering if they asked the current ceo of paramount, ahead of earnings coming out after the bell today, amid the sales process. Chris the situation was described as being very fluid, which is i think an understatement. We are reasonably certain the company will announce earnings this afternoon, but beyond that, yes, they are expected to say goodbye to their ceo, bob bakish , replacing him with a Management Committee on an interim basis. Sky dance, that would be a change of control for the company and that was their best and final offer yesterday david ellison, the owner of sky dance, offering his contribution in terms of buying paramount stock at a premium for what its trading at today. Appeasing the shareholders. Redstone is also apparently making concessions allowing the nonvoting shareholders to weigh in on a deal, something that they dont have to do but it is sort of best practice in Securities Law these days. So, a whole lot going on. Ed you have outlined the mechanics of the deal, but give us the rationale as to why. Why are we talking about someone changing the deal with paramount . Whats going on . Chris the traditional tv business is in trouble, people leaving for streaming services. Advertising has been in decline. You will see a pickup this quarter because of the super bowl. The streaming business that is the future is still losing money. Although the losses are coming down a bit, still in the hundreds of millions of dollars. Its a question as to whether they will ever stop. So, when your Main Business is like that, the movie business eing a problem over the last year, a challenge getting people back to theaters. Pretty much every leg of their business is in some sort of peril. That is why the stock is now and they are considering all options. Ed all right, chris, really appreciate having you up from l. A. So far, shares of sofi are falling. We will speak to the ceo. Another stock on the move. Caroline its in france, all about content getting split into four units. Sales rose in the first order for the french media company. This is Bloomberg Technology. Caroline sofi come out with earnings, looking strong today, but the forecast is what people are warning others about. Adjusted net revenue down, there. We want to dig into that nuance with anthony noto. Your fullyear guidance was raised in you are feeling positive about how you are stealing steering the company at an inflection point, but why is the second order above expectations . What can you add to what we are seeing right here, right now . Anthony great first quarter, its in line with the transformation that we talked about, our combined tech Platform Financial Services business, growing 54 yearoveryear, combining the flat revenue. That was a part of the plan. We had our second consecutive quarter of positive eps, in addition to growing book value on a tangible basis per share by 60 , potentially. We guided the full year, as you mentioned, above not just our beat but our prior guidance. Thats a positive overall outlook. We had not usually give the Current Quarter and at the end of 2024 we gave the full guidance for q1, not q2. Because we are taking a conservative view on lending, lending will be down sequentially in q2, while our tech Platform Financial Services revenue will have strong yearoveryear growth with strong sequential growth and continued profitability as well. We feel good about the business transformation we have made over the past six years. Growing revenue thats flat is a real testament to the diversity of our business. You cant feel great about the share reaction caroline you cant feel right about the share reaction. Anthony you cant react to those day today. We are happy with the trend. We are taking a conservative view on lending, prudent given the uncertain environment. With it as it becomes more stable, we will be more aggressive with lending. Given the uncertainty in the last six months on rates. Ed good morning. A lot of the questions we got from the audience for you were about the capital that you raised and your strategy going forward. A lot of interest in that. Im not cure why the people want to know, but that is the question. Anthony i think that people misunderstand the share count. First, we issued a convertible note. 1. 2 5 interest. It allowed us to redeem a preferred security, paying 12. 5 percent interest. That will provide savings for us to. We have already noticed the holders of that preferred instrument being redeemed sooner than expected. We also bought back an existing convert trading below face value accretive to book value. It was basically neutral on tangible book value per share. There was a perception that its diluted. Its not. I think there was a misunderstanding on the cirque out in the future. Ed my colleague at Bloomberg Intelligence has a clear thesis for you guys, brilliant app onestop shop that targets young professionals. That is what they think. But the story really is this higher Interest Rate for longer environment narrative. How does that thesis work in that rate environment . Anthony your colleague said it well, we should consider having them as one of our spokespeople. Higher for longer will create challenges for financial institutions. Its a riskbased capital ratio relative to where we have to operate from a regulatory standpoint with plenty of liquidity. As we said today, a Regional Bank was challenged and we benefited from Strong Deposit of , record growth in deposits. 90 of our deposits were from direct deposit customers, we are their primary account and its very sticky. We will put stress on the Balance Sheets of others they are not hedging appropriately delayed we do. We hedge the loans so they dont have that Interest Rate exposure and can match what we are giving as the apy for money members against the offers they have to maintain highnim and we have a platform not tied to Interest Rates. In the Financial Services business, we have the invest platform growing nicely as another source of diversified revenue for us. Caroline we are a technology that wants to go into the specific, but why are you more cautious on the u. S. Economy . Why are you saying 5 in excess of unemployment with Interest Rate cuts that you have hal ved . Anthony our Balance Sheet has grown quite meaningfully. As we came into 2024, our choice was could become up with our own expectations for 2020 four and use consensus . The planning stance that we took was that there would be only four rate cuts. The market factored in six at the time. We took a planning stance on unemployment that had been more than 5 . The market was well below that. We took a stance that was modest on contraction. Here we sit today three months later in the market is only factoring in one to two rate cuts, so im thankful that we took a conservative stance and still have a conservative stance. I couldnt feel better about the underlying trends and strategy of our business, but we are not in an environment where anyone has a strong or High Conviction level on where the rates will be and there is still a debate about rate cuts whatsoever. We cannot put the business at risk hoping that we can figure it out, so we are headed to a conservative point of view. Ed we are short on time, but youre moving away from the student loan refi trademark is this. Why . Anthony the strategy was to create a onestop shop for Financial Services needs. No one was providing all the products that you would need. So, we offer home loans, student loans, personal loans, in school loans, checking and savings, investing, insurance, small to Medium Business loan generation, and the tech platform business. The strategy was always about building a onestop shop for your Financial ServicesBusiness Needs resulting in a diversified business allowing us to make choices about what we grow and what we take a conservative view on. Ed anthony noto, great to catch up and have you back on the program. Coming up, hong kong is next in line to list a batch of crypto ets. Those details, next. Stay tuned, well be right back. Look a lot, busy monday, big week ahead. This is Bloomberg Technology when you morgan after a year and a half break, apple is finally ready to release new versions of the ipad. Apple will release a new version of the ipad pro, and upgrade to the ipad ale air, as well as a new pencil stylus and keyboard kit. The ipad pro will get the biggest upgrade of all, adding an led display to the ipad for the first time, the same crystal Screen Technology used in the iphone x since 2017. The ipad pro will also get the m3 chip, the same processor used since march. The ipad air will get the m2 chip from 2022 as well as a 12. 9inch screen option. That means the mid tier range will get a bigger display size for the first time. The magic keyboard, which integrates the keyboard and tracks that into an ipad case, will get a new aluminum frame, making the ipad pro more laptoplike while in use. I am mark gurman, this is power on. Emily welcome ed welcome back to Bloomberg Technology. Im ed ludlow in San Francisco. Caroline i am caroline hyde. We work has managed to kind of bankrupt the deal. We understand the allimportant meeting today, april 29, coming the exit deal. Newman is objecting, saying it is a failed plan. Newman had offered to buy we work, but it was rejected. The fact that they have basically got a 4 billion insecure debt that is a key issue, limiting issue here more broadly, but it looks as though a deal has been cut, but adam neumann is not involved. Lets get a market check. They are tentatively higher. We got the fed, the dollar still lower versus japanese yen,