Caroline im Caroline Hyde in new york. Ed and im in san francisco. Caroline tesla asked its investors to approve a pay package. Ed chipmaking orders dive at asml. Our chip stockpiles back . Caroline we will bring you into a conversation with the French Company a toss. In the equity market pulls back a little bit from where it had been. Nevertheless we see bond markets outperform, currently seeing a 20 year yield down to, three basis points. Moving on and looking on the world of crypto. Its been on the downside as the u. S. Dollar is falling. The first time in six days we saw the dollar give up strength as we digest what has been a slightly more hawkish of. Risk assets are still cautious out there. Ed tesla continues to dominate headlines. Down for a fourth straight session. The stock is trading at its lowest level in almost a year and i dont think this has to do with the headlines on the bloomberg terminal. The idea of incorporating in texas, thus about the downward pressure. There is indigestion from the past four days. Layoffs, and elon going in on robotaxis. What is happening . But the stock is under a lot of pressure while the talk from elon musk is finding talk and we have some pretty good guest go over that. Caroline whats so interesting is coming out fighting to delaware, the court, the 2018 pay package and you are not doing enough to push back. Why does the argument go it would cost billions more to renegotiate the pay package . Is interesting the board tried to portray this as a nuisance. This idea that they would have to take on additional expense that the company accounted for. Having to set up these options and satisfy this compensation for musk and do it over again. It does also strike me from the language used that robin done home referred to this idea that the court had taken away shareholder voice. It was the freedom of speech argument. But Corporate Governance critics are not going to look at this fondly. This idea of this award being slapped down on the board going back to the well with the same plan. Ed youve been reading the proxy for the past four hours and 30 minutes. There are some granular detail in it that tesla explains they ran the Compensation Program in the idea of recompensating in texas and my read is that they dont want to be accused of using the text as a corporation as leverage in this patent issue . They want to get the shareholders back in again and make the case that shareholders if they did not already know what went into this award. The Delaware Court brought to light a lot of these details and make clear with the shareholders, are you ok with this or arent you . We have heard rumblings of this idea of the retail shareholders were in an uproar based on the volume of complaints about the way this was handled. Tesla is saying that four of his 10 biggest Institutional Investors communicated that they were in support of this award. There is some reason to think that perhaps the stands a chance of being approved just as it was in 2018. Ed it was a lot of dense tax to go through. Great work, thank you very much. Pierre ferragu from new Street Research what is the story of tessa right now . Pierre the one sentence would be this is a car manufacturer. In order to be successful in manufacturing cars as a platform to do additional amazing things. Driverless driving, they are making exceptional progress. In the long term, the goalposts of being able to do robotaxi. In the opportunity to develop robots on the platform and these things will take years. Elon musk is very impatient and tends to accelerate that momentum but it will take years. In the meantime it still is successful car manufacturer, gain share in the market and in the next 2, 3 years to continue to grow sustainably with Revenue Growth and margin expansion. Ed it was a loaded question but you didnt give me one sentence. The reason i ask it is because im trying to understand the downward pressure on the stock and i dont think it has much to do with the proxy. With all the headlights of the four days which was the most interest to you . Pierre of the last few days the most important ive heard, to digest the headline from last week. We have had elon musk in the designer. This understanding the probably whats happening to tesla they are developing the robotaxi for now because in order to ramp up millions of units of mexico is still too high for three years to wait. My educated guess, lets go all in on robotaxi. And then lets get back to manufacturing later. That was the last big thing of 48 hours. Caroline i love the fact that you give us your reasoning. Should it be down by a third this year . Pierre its a company that makes electric cars said they were in the future of cars. And no one can make electric cars is good and is cost efficiently. This gap is widening. I just recently drove the highlander. It is still mind blowing. In terms of developments i have a lot of sympathy because tesla has been hitting a wall in terms of growth. Has been forced to raise his pricing. They have to reset the bar. That wont happen over a few weeks. Its still not enough to convert. Yes, i have sympathy for that. It continues to work on long term moon shots like the robotaxi. It will take years of recovery. Caroline giving us the shortterm and longterm. Meanwhile, tech earnings, they are upon us. We will dive deeper into what we should expect. What are you looking at. Ed the story, chip contract manufacturers are not ordering chipmaking machines what does that tell us . That is next. This is bloomberg. Good game. Thanks for coming to our clinic, first ones free. So, what are you thinking . Im thinking. speaking to self about our honeymoon. What about africa . Safari . Hot air balloon ride . Swim with elephants . Wait, can we afford a safari . Great question. Like everything, it takes a little planning. Or, put the money towards a downpayment. On a ranch. In montana. With horses lets take a look at those scenarios. J. P. Morgan Wealth Management has advisors in chase branches and tools, like wealth plan to keep you on track. When youre planning for it all. The answer is j. P. Morgan Wealth Management. Caroline a s m l the chip manufacturer having its worst days since 2022. Nevertheless we see a pullback because earnings disappoint. In terms of revenue, it will be lower than the market anticipated. Samsung pulled back on some of the owners they bought for their chipmaking equipment. This shows a chip sector thats recovering. But what of the ai revolution . There are number one market is china. Half of their revenue is coming from china even though we receive those high you ev going to china. Ed china historically is a big market. The historic anxiety is around taiwan, south carolina. The drop was quarter on quarter 60 . By machines that make chips. Lets dig into these markets. Tech earnings around the corner. Ipek ozkardeskaya from Swissquote Group the u. S. Is saying come and build chip factories is going to be great and it gave us capex outlooks for this year and somehow its not so rosy . Ipek this is eyebrow pricing an important to note that in the second half of this year is great to see a rebound in the cap their full year outlook unchanged. This does ointment has left a sour taste in investors mouth and we actually think at some point the growth and Growth Expectation for chipmakers will be leveling out. Its just to see if we see these expectations slow down. That could trigger a sizable correction and profittaking. They expect ai to continue to contribute to the revenues. We expect ai to continue but maybe not in the same way. We expect changes within the ai segment. We saw in the first phase, a benefit to companies in chipmakers, data centers. All of these companies that provide ai tools to other companies. We are thinking there will be a second phase of the ai rallies that will benefit to companies that invest heavily in ai. I think even though we see some disappointment and chipmaking earnings. It will not end. Caroline for the rest of the earnings season, ai expectations . Ipek the expectations around Earnings Growth around 40 for the first quarter. That is still down from 55 . If these signal out things like apple and tesla that have been in trouble while the expectation of Earnings Growth goes up to 18 . Nvidia, microsoft, google, facebook. We will be interested in who within this ai segment will be profiting from ai . The provider of ai tools or shift towards the user . Caroline Ipek OzkardeskayaSenior Market analyst from Swissquote Group. Jamie dimon and his thoughts on the future of money. His thoughts, that some bloomberg tech knology. Thoughts on bloomberg technology. Caroline Jpmorgan Chase ceo jamie dimon. He is laying out his vision for the future of money in this ai world. This is with bloomberg originals house emily chang. Take a listen. Jamie for any business when you think about risk things could go terribly wrong, can you survive them . It could be technology, government regulations, it could be the weather if you are a restaurant. They could close you down and if you lose this weeks business you out of business. Emily how could fintech replace banks . Jamie hes not wrong the Technology Changes everything. What is banking . Somebody has to hold the money, someone has to move the money, someone has to raise the money. Someone has to research the money. Those services will still need to be around and tech helps us do a better job of it. I have been writing about big tech and are business. We have fintech and they have big tech. I would be against an unfair use of their position to dominate a business. Apple is going into financial. Jamie if they hold money and move money they are a competitor. We partner with people. Emily existential threat . Jamie if we were complacent about it, yes. Ed that was Jpmorgan Chase ceo, jamie dimon. He is one of the most obsessed about people. A highflying executive. The circuit series to you get people in a chair but being themselves. How did she do with this time around . Emily in london and he was just there for a tech conference. It was the most of making use of every moment. The chitchat before the formal sit down and we talked about how many days hes on the road each year. Childhood, family. I asked how are you doing and he said what you mean . How do you juggle it all . You usually ask that to a woman. You dont usually ask jamie dimon. Family actually comes first and that is where we started and we tried to open it up from there. Caroline you got him to speak about his family and you outside of both men and women and how ai is changing its business . Emily ai is a big part of the season as its a huge part of your show. We can avoid it. One of the questions i had for him chatgpt i have 30 years what should i do with my money . Its already embedded in everything and learn more and more about you. What if you ask how to get rich quick and he said i hope it tells you thats impossible. Ed real quick, what are you doing this season . Emily we go to see mary barra in detroit. We get to know her behindthescenes. The founder of oculus in making drones, satellites, warfare. I think you will love it. Ed you can catch the full episode tonight here on bloomberg. Caroline coming up, regulation that could be coming up next month two. Thats coming up. When people come, they say theyve tried lots of diets, nothings worked or theyve lost the same 10, 20, 50 pounds over and over again. They need a real solution. Ive always fought with 510 pounds all the time. Eating all these Different Things and nothings ever working. 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All on the most reliable 5g mobile network nationwide. Wireless that works for you. For a limited time, ask how to save up to 830 off an eligible 5g phone when you switch to comcast business mobile. Dont wait call, click or visit an xfinity store today. Ed tesla off. 7 . Still down for fourth straight session. We talked about the reasons why earlier in the show to stop the below 500 billion now in market cap. I am looking for stories, clear downward direction in the market. Tesla is one name that contributes. Bitcoin is interesting. During the course of the show we are now down to 6000 u. S. Dollars per token on bitcoin a drop of 4 on the session of an asset that there trades 24 7. On the bloomberg terminal there with ranting about the real world use case. Atms in latin america becoming mainstay and the industry bracing. Lots of people say they are ready. Look at technology rates of stocks linked to crypto. They are also seeing downward pressure and we have other pieces of news from that industry too. The Grayscale Investment ceo says the market for u. S. Spot get one spot bitcoin etf is still relatively new. In an exclusive conversation the ceo spoke about the sec approval of bitcoin etf and the long road to regulatory approval. Even though they have now been in market for three and a half months we still dont have listed options on spot bitcoin etfs. It is an important feature investors want and deserve. It can help investors manage their positions and manage risk. Ultimately i believe the sec should approve these though they are once again not in a position to trot treat spot bitcoin etfs from Bitcoin Futures based etfs. Ed moving onto stable coins. Amid a push in the house and senate to pass such legislation as soon as next month. Senator loomis and senator gillibrand are proposing a measure that would ban algorithmic stable coins saying the bill would protect consumers and the u. S. Dollar while enabling innovation in payment. I saw a headline on the terminal this morning that says the legislation has momentum. Does it . Kailey this is an initiative by these senators that have introduced in the past wider legislation to set regulatory standards for the industry as a whole. This is a much narrower effort and perhaps the narrowness could get this across the finish line in a way other efforts havent. We are talking about a framework for stable coins that would ban algorithmic stable coins. An example of and around grzelcyk and algorithmic stable coins that looms large in our head is terra usd that was supposed to be paid one to one by the dollar but instead of being backed by reserve use smart contracts to try to keep the peg that worked until it is not and it collapsed on a Fabulous Fashion with 40 billion wiped out. They want to avoid that in the future. This regulation would not allow those and require one to one reserve. Other guidelines as well as to the authority federal and state regulators would have. It would establish the fbi see as being able to recover lost assets should the stable coins collapse. This is probably a product of what we have seen in the past. Will the initiative move forward . That question will be left to the democratic senator from ohio and chair of the Banking Committee sherrod brown, largely crypto skeptic. This weekend he suggested he could see the stable going measure attack attached to other measures. We will see if the Initiative Moves Forward in the senate. Our notice as well and had a house the chair of the Financial ServicesCommittee Patrick henry and Ranking MemberMaxine Waters are working on a stable going effort of their own. Meeting within a Chuck Schumer about this already. More broadly how necessary is this for the industry to have some sort of robust set of rules, of guardrails . We have already spoke with the European Commission about they how they are trying to enforce regulation, and at least its clarity of some sort. Clarity is often what this industry is asking for. This does not go as far as the industry would like, but it does address a certain part of it. We have heard from groups like the Block Chain Association that they are supporting the stable going effort. When i have talked to people here in washington a lot of them have expressed more optimism that stable going legislation its the most likely thing to get through this Congress Versus more wide, sweeping legislation that would perhaps delineate for example what the fcc would have control over versus the cftc. This has proven more difficult to do on capitol hill. We have seen an effort get through the Financial Services and agricultural committees in the house. It would delineate the regulatory land, if you will, the territory for those two different agencies. That has not moved forward further. In the meantime you probably know well based on your conversations at bloomberg technology, the industry exceeds enforcement and it will stay that way until Congress Moves forward sick tangibly substantially. Caroline thank you. The sec blocked thirdparty messaging apps and texts from employees work mobile phones. It includes whats up and i message. The sec says this will lower risk their systems can be compromised and enhance recordkeeping.