EU Tariff Impact on Tesla and Electric Vehicle Market

Tesla faces a 9% EU tariff on Chinese-made vehicles, signaling ongoing trade tensions in the electric vehicle market.

### EU Tariffs on Tesla and Market Dynamics: Insights from Bloomberg Technology
* 🌍  The EU has announced a **9% tariff on Chinese-made Tesla vehicles**, which is lower than previously threatened tariffs amid ongoing tensions in the EV trade.
* 📉  The S&P 500 is experiencing a **slight decline** after approaching record highs, with a potential **nine-day winning streak** on the line, marking the **longest since 2004**.
* 🚗  Tesla's tariff situation highlights the competitive landscape, as other automakers face significantly higher tariffs, with Tesla arguing for a **lower rate** due to **less subsidy support** compared to state-owned Chinese manufacturers.
* 📊  Julia Poliscanova from Transport and Environment emphasized that the EU's tariffs aim to **bolster local manufacturing in Europe**, as reliance on imports for critical technologies poses **risks to job growth and opportunities**.
* 🔍  The tariffs also reflect a broader concern among European manufacturers, including Volkswagen and BMW, about **rising competition from Chinese companies** and the potential for **increased nationalism impacting their operations in China**.
* 🏛️  In a notable shift, Democratic figures are engaging with independent voters through appearances on Fox News, aiming to **reach undecided voters in key swing states** ahead of upcoming elections.
* 📈  Bitcoin's price drop in August is seen as part of a typical market consolidation phase, with long-term investors focusing on **adoption and the expansion of Bitcoin's utility** amidst concerns about **government actions affecting crypto assets**.
* ⚖️  Alyse Killeen of Stillmark highlighted the importance of a **mature financial ecosystem for Bitcoin**, noting that the introduction of ETFs has **added legitimacy to the asset**, while retail and institutional investors are **diversifying their portfolios with new products**.

### The Evolving Landscape of Cybersecurity and Venture Capital Amidst Market Changes
* 📈  The technology market is experiencing notable momentum, particularly with the NASDAQ 100 on track for its **ninth consecutive day of gains**, marking the **biggest jump in an eight-day period since 2022**.
* 💻  Nikesh Arora, CEO of Palo Alto Networks, highlights the **fragmented nature of the cybersecurity industry** and the company's strategy to **consolidate customer portfolios for better security at lower operational costs**.
* 🔒  Following a significant outage at CrowdStrike, Palo Alto Networks gained new customers who sought reassurance in their cybersecurity offerings, demonstrating the **impact of competitor failures on market share**.
* 📊  Arora emphasizes the importance of **Remaining Performance Obligations (RPO)** as a long-term indicator of business health, arguing it reflects the company's **growth potential and future profitability**.
* 🤖  The company has launched AI-driven products to help organizations monitor and control their AI usage, generating **$200 million in revenue from AI security solutions**, which Arora believes is an **industry first**.
* 💰  Bradley Tusk, CEO of Tusk Ventures, discusses the current liquidity crunch in the venture capital market, stressing the need for **rate cuts to stimulate investment activity** and address **overvaluation issues in the tech sector**.
* 📉  Tusk warns that the influx of large funds during the boom period has led to **overvaluation and a slowdown in early-stage investments**, which could hinder **technological development and growth**.
* 📺  The evolving landscape of sports streaming and the implications of recent court rulings are discussed, with industry leaders emphasizing the **challenges consumers face in navigating multiple services while seeking value and accessibility**.

>> FROM THE HEART OF WHERE MONEY, INNOVATION, AND POWER COLLIDE, IN SILICON VALLEY AND BEYOND, THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: LIVE FROM NEW YORK AND SAN FRANCISCO, THIS IS BLOOMBERG TECHNOLOGY. THE EU PLANS A 9% TARIFF ON CHINESE-MADE TESLA'S. BUT THAT IS LESS THAN FIRST THREATENED PAYMENT WE DISCUSSED THE EV TRADE TENSIONS. ED: CYBER STRENGTH. PALO ALTO NETWORKS JUMPS ON SOLID EARNINGS. SIT DOWN WITH THE CEO. CAROLINE: WE HEAD TO CHICAGO TO DELVE INTO THE D&C. WHICH TECH INFLUENCERS ARE MAKING THEIR MARK? ALL OF THAT AND MORE COMING UP. FIRST, LET'S CHECK IN ON THESE MARKETS.

WE ARE COMING OFF OF WHAT HAD BEEN CLOSE TO RECORD HIGHS. NOW WE DIVE A LITTLE BIT, JUST A QUARTER OF A PERCENT ON THE S&P 500. IF WE MANAGED TO END IN THE GREEN, THAT WOULD BE NINE STRAIGHT DAYS OF GAINS FOR THE S&P. THE LONGEST WINNING STREAK IN TWO DECADES, SINCE 2004. THE NASDAQ, NVIDIA, SOME OF THE CHIPMAKERS ON THE DOWNSIDE AT THE MOMENT, BE TAKING SOME PROFIT AS WE GET WORRIED ABOUT SOME OF THAT DATA COMING OUT TOMORROW. WILL THERE BE DIVISIONS? THE COIN MANAGING TO SHRUG OFF SOME OF THE RISK ASSET CONCERNS. WE HAD BEEN UP MORE THAN 2%. IT'S DELVE INTO WHAT YOU ARE WATCHING ON THE MICRO. ED: TESLA ACTUALLY IT IS WORTH

NOTHING IS IN -- IS IN LINE WITH THE BROADER MARKET. ALMOST 2.5% EARLIER IN THE SESSION. CURRENTLY DOWN .7%. THE STORY IS A 9% ADDITIONAL TARIFF ON CHINA-MADE EV'S SOLD WITHIN THE EUROPEAN UNION. IT IS WORTH NOTING THE CONTEXT THAT THERE ARE OTHER AUTOMAKERS, DOMESTIC, CHINESE AUTOMAKERS, MUCH HEAVIER LEVELS OF TARIFF RELATIVE TO TESLA. IT IS A POSITIVE NUMBER, BUT THE MARKET DID TAKE A WEIRD MOVE IN THE LAST HOUR OR SO. I THINK WE SHOULD DISCUSS IT MORE. CAROLINE: LET'S DO THAT. WHAT ALREADY ARE WE SEEING? WE ARE SEEING A 10% TARIFF, THEN 9% EXTRA LEVELS AT TESLA BECAUSE OF SOME OF THE SUBSIDIES, THE CHEAPER BATTERIES, FOR EXAMPLE THEY ARE

ABLE TO ALLOCATE IN CHINA. >> WHAT WE HAVE HAD HERE IS, YOU KNOW, AS TENDS TO BE THE CASE WITH THE EU, A MONTHS-LONG PROCESS OF, MANY APPROVALS UPON APPROVALS TO ADVANCE A DECISION BEING MADE. IN THIS CASE, TESLA HAD THE ABILITY TO GO TO BRUSSELS AND SAY, WE THINK WE SHOULD BE SUBJECT TO A LOWER TARIFF RATE BECAUSE WE ARE NOT AS SUBSIDIZED AS BYD. THEY WERE ABLE TO MAKE A CASE TO THE EUROPEAN COMMISSION THAT, INDEED, THEY HAVE NOT HAD AS MUCH SUPPORT AS SOME CHINESE COMPANIES, SOME OF WHICH ARE STATE-OWNED, I SHOULD ADD. FCIC CASH -- SCIC, THE EU MADE A DETERMINATION THAT THEY WERE NOT HELPFUL ENOUGH IN THE INVESTIGATION AND

LACK OF COOPERATION LED TO MORE PUNITIVE TARIFFS FOR THEM. IN THE END, 9% IS A MUCH SMALLER INCREMENTAL TARIFF FOR THEM, BUT IT IS NOT NECESSARILY SOMETHING YOU WANT IF YOU ARE TESLA AND YOU ARE RELYING ON CHINA AS A MAJOR SOURCE OF YOUR MODEL 3'S. MOST PEOPLE SORT OF BELIEVE THAT THE MODEL 3 IS ENTIRELY SOURCED FROM CHINA FOR THE EU. SO, A 19% TARIFF KICKING IN LATER THIS YEAR IS NOT SOMETHING TO BE EXCITED ABOUT, EVEN IF IT IS NOT AS BAD AS IT COULD HAVE BEEN. ED: THE LEAD OF THE STORY FOCUSES ON TESLA, BUT THERE WERE OTHER NAMES INVOLVED HERE THAT SOME WATERS INTO THE EUROPEAN UNION.

WHO ARE THEY, AND ON THE POINT YOU JUST MADE, THERE IS THE MATTER OF TESLA'S LARGE OPERATION IN BERLIN, WHERE THEY ALSO MAKE VEHICLES. >> I THINK THEY ARE THE THREE COMPANIES THAT WERE SAMPLED, WHICH MEANS THEY REALLY WERE THE ONES THAT THE EU CAME AND TOOK A MUCH CLOSER LOOK AT IN TERMS OF TRYING TO COME TO SOME DETERMINATION OF HOW MUCH THEY HAVE BEEN SUBSIDIZED OVER THE YEARS. THOSE THREE ARE CALLED OUT SPECIFICALLY, AND THEN SEPARATELY, COMPANIES THAT DO SHIP FROM CHINA INTO THE EU ARE SUBJECT TO RATES BASED ON WHETHER OR NOT THEY COOPERATED. THIS IS NOT A CASE OF JUST TESLA BEING SUBJECT TO THIS. IT IS AN INDUSTRY-WIDE STORY AND SOMETHING OF CONCERN EVEN

FOR MANUFACTURERS LIKE VOLKSWAGEN AND BMW, THAT ARE NOT ONLY CONCERNED BECAUSE THEY HAD PLANS TO SHIP A SMALL AMOUNT OF VEHICLES FROM CHINA INTO THE EU, BUT ALSO BECAUSE THEY ARE WORRIED ABOUT BLOWBACK. THEY HAVE A MUCH BIGGER PRESENCE IN CHINA THAT HAS COME UNDER PRESSURE BY THE FACT THAT THESE CHINESE MANUFACTURERS HAD BECOME SO COMPETITIVE THAT THEY ARE REALLY WORRIED TOO ABOUT THIS RESULTING IN HIGHER TENSIONS ON A POTENTIALLY MORE NATIONALISM, AND MORE OPPOSITION FOR HAVING A FUTURE IN SUCH A BIG AND IMPORTANT MARKET FOR THEM. ED: CRAIG TRUDELL, THANK YOU. I WANT TO GO DEEPER ON THIS STORY, GET THE BROADER DYNAMICS AROUND EB ITERIS.

WE WERE JOINED BY JULIA POLISCANOVA AT TRANSPORT AND ENVIRONMENT, A EUROPEAN ADVOCATE FOR CLEAN TRANSPORT IN ENERGY. I THINK THAT IS A GREAT PLACE TO START. THE COMMISSION'S MOTIVATION AND RATIONALE FOR PLACING THAT KIND OF LEVEL OF TARIFF ON CHINA-OLD CARS. WHAT IS THE POINT? WHAT IS THE PURPOSE HERE, JULIA? JULIA: I THINK THE MAIN PURPOSE HERE IS TO ACTUALLY MAKE THE CASE FOR LOCAL MANUFACTURING IN EUROPE. THIS IS NOT ABOUT THE NATIONALITY OF MANUFACTURERS. IT IS ABOUT WHERE ELECTRIC VEHICLES AND BATTERIES ARE PRODUCED. WE HAVE TO REMEMBER THAT THE ENTIRE PREMISE OF THE ENERGY OFFENDED -- ENERGY TRANSITION IN EUROPE IS HAPPENING ON THE PROMISE OF NEW JOBS, GROWTH, AND NEW OPPORTUNITIES. AND IT WILL NOT HAPPEN IF

EVERYTHING IS IMPORTED. NOT SUCH CRITICAL TECHNOLOGIES. SO, THIS SHORT, THESE TARIFFS ARE REALLY THE RIGHT ANSWER TO MAKE THE CASE. WHAT I DO THINK IS REALLY IMPORTANT TO STRESS AND REMEMBER, TARIFFS ALONE WILL NOT SAVE THE MARKET SHARE OF EUROPEAN CARMAKERS. THE ONLY STRATEGY THAT CAN HELP THEM IS TO FRONTLOAD AFFORDABLE ELECTRIC VEHICLE MODELS. THAT IS WHAT WE ARE MISSING RIGHT NOW FOR MANY WESTERN BRANDS. ED: IT TAKES TWO TO TANGO, AS WE SAY ON THIS PROGRAM. IT IS ALSO IN RESPONSE TO CHINESE GOVERNMENT-LEVEL SUBSIDY. THE DIFFERENT MARKET AND COMPETITIVE DYNAMICS. HOW CONSCIOUS IS THE EC IN THAT WHEN THEY COME TO A DECISION? JULIA: THAT IS QUITE IMPORTANT. THAT HAS BEEN THE ORIGINAL AIM

OF THIS ENTIRE INVESTIGATION. IT IS IMPORTANT TO STRESS THAT IN EUROPE, COMPARED TO THE U.S. AND THE EU, WE HAVE SPECIFIC DUTY RATES FOR DIFFERENT CARMAKERS. TO ACCOUNT FOR THE DIFFERENT SUBSIDIZATION RATES. FOR EXAMPLE, YOU WOULD HAVE MUCH HIGHER SUBSIDIZATION IN MORE STATE-OWNED COMPANIES. THAT IS WHERE THEY HAVE THE HIGHEST RATE COMPARED TO SOMEONE LIKE TESLA OF COURSE IS A -- AS A FOREIGN CARMAKER WILL NOT SEE THE SAME SUBSIDIZATION. EVEN THEY -- EVEN THOUGH THEY WILL BENEFIT MORE BROADLY IN CHINA. THAT IS A BIG CONSIDERATION. THE LEVEL PLAYING FIELD IS IMPORTANT, BUT AS IMPORTANT IS A PUSH TO LOCALIZE SOME OF THIS INDUSTRY IN EUROPE. CAROLINE: 36.3 PERCENT ADDITIONAL DUTIES IT IS CURRENTLY FACING, SO SOME

OF THE HIGHEST AMONG THERE. TELL US ABOUT THE NUANCE THAT THE EU FACTORS IN FOR RELATIONSHIPS THAT LOCAL CAR COMPANIES HAVE IN CHINA, WITH CHINA TO PRODUCE? JULIA: RIGHT NOW WE DON'T KNOW MUCH DETAIL ABOUT THAT. WE KNOW THERE IS A POSSIBILITY FOR A LOWER RATE DUTY FOR SOME OF THOSE JOINT VENTURES WHEN THEY WILL START IMPORTING SOME OF THESE VEHICLES, ELECTRIC VEHICLES INTO EUROPE. WE ARE LIKELY TO FIND OUT MORE ABOUT THEM AS THESE JOINT VENTURES START OPERATING. ED: JULIA POLISCANOVA OF TRANSPORT AND ENVIRONMENT, GOOD TO HAVE YOU ON BLOOMBERG TECHNOLOGY. THANK YOU VERY MUCH. I WANT TO GET TO A HEADLINE THAT IS JUST CROSSING THE BLOOMBERG. TIGER CUB DAVID GO WELL IS SHUTTERING HIS $11 BILLION FIRM.

AND RETURNING CLIENT CASH. HE TOLD CLIENTS IN A LETTER THAT HE MADE THE DECISION TO CLOSE HIS HEDGE FUND DUE TO HEALTH PROBLEMS. MATRIX CAPITAL MANAGEMENT MAKES CONCENTRATED TECH-FOCUSED STOCK BETS, WITH MAJORITY ASSETS, BUT ALSO HAS A PRIVATE EQUITY FUND. THAT STORY NOW ON THE BLOOMBERG AND BLOOMBERG.COM. A BIG BREAKING STORY IN THE WORLD OF TECH. COMING UP, WE ARE LIVE FROM CHICAGO FOR THE D&C. STAY WITH US. -- DNC. STAY WITH US. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: IT IS THE FIRST TIME EVER ABOUT 200 SOCIAL MEDIA CONTENT CREATORS HAVE RECEIVED PRIVILEGES SUCH AS ACCESS TO DELEGATES AND STUDIO SPACE AT THE DEMOCRATIC DIMENSION. BLOOMBERG IS LIVE FROM THE DNC.

IN CHICAGO. BRAD STONE HAS THE LATEST ON WHAT TECH NAMES AND THEMES ARE IN FOCUS. THAT, IT IS ALL ABOUT BRAT SUMMER. THE SOCIAL ANGLE HAS DONE WELL FOR HARRIS AND IT LOOKS LIKE SHE WANTS TO CONTINUE THAT. BRAD: HI, CAROLINE. ABSOLUTELY. HI FROM CHICAGO, WHERE THE NAME OF THE GAME HERE AT THE DNC IS A LITTLE BIT OF RELIEF. AND A LOT OF UNITY. SOCIAL MEDIA IS OBVIOUSLY PART OF THE PARTY'S STRATEGY. MENTIONED 200 INFLUENCERS. THEY ARE GETTING WHAT THE PARTY IS CALLING THE BLUE CARPET ROLLED OUT TO THEM. YOU SEE A SPEAKER, AN INFLUENCER SPEAKER HERE EVERY NIGHT AT THE CONVENTION. OBVIOUSLY TRYING TO CHALLENGE FORMER PRESIDENT TRUMP'S

STRENGTH ON SOCIAL MEDIA, AND TIKTOK IN PARTICULAR. THE PARTY IS MAKING A BET THAT PERHAPS THESE INFLUENCERS CAN REACH A YOUNGER GENERATION. ED: BLOOMBERG'S BRAD STONE LIVE FROM CHICAGO. THANK YOU VERY MUCH. IT IS NO SURPRISE THE DNC FEATURES NAMES LIKE GAVIN NEWSOM OR U.S. SECRETARY OF TRANSPORTATION PETE BUTTIGIEG. BUT WHAT MAY BE UNEXPECTED IS WHERE THESE DEMOCRATIC PLAYERS ARE SHOWING UP. THE FOX NEWS STUDIO. BLOOMBERG'S KATIE MILLER JOINS US. ALL YOU DO IS PICK UP YOURSELF ON AND SEE THE VIDEO CLIPS AND WHERE THEY ARE TAKING PLACE. WHAT -- WHAT HAS YOUR REPORTING TOLD YOU, HANNAH? >> ALL OF THE DEMOCRATS ARE GOING ON FOX NEWS.

SOME OF THE BIGGEST NAMES ARE SHOWING UP IN THEIR STUDIO. THEY ARE TRYING TO TAP INTO INDEPENDENT VOTERS, PEOPLE WHO ARE UNDECIDED. FOX IS THE MOST-WATCHED CABLE NEWS NETWORK. KNOW THIS ELECTION MIGHT BE DECIDED BY A FEW SWING STATES, AND THEY WANT TO REACH THOSE PEOPLE. CAROLINE: THE PEOPLE THEY REACH, HOW DO THEY REACH THEM? WHAT SORT OF SHOWS ARE THEY APPEARING ON? HANNAH: THE CONGRESS PEOPLE I TALKED TO, THEY HAD A PREFERENCE FOR DAYTIME NEWS. THEY WERE LIKE, WE WANT TO STAY AWAY FROM THE EVENING ENTERTAINMENT STUFF. ONE CONGRESSMAN SAID HE DID NOT WANT TO BE USED AS PROPAGANDA. THEY ARE PICKING AND CHOOSING WHERE THEY GO.

MANY OF THEM I SPOKE TO, THEY HAVE HAD POSITIVE EXPERIENCES GOING ON FOX. CAROLINE: HANNAH MILLER ALL OVER THE FOCUS ON FOX OCTOMOM. LET'S TALK ABOUT DONALD TRUMP. A MONTH AWAY FROM BEING ABLE TO TURN HIS PAPER SOCIAL MEDIA FORTUNE INTO COLD, HARD CASH. THE QUESTION IS, IS HE GOING TO DO IT? BAILEY LIPSCHULTZ CAN TALK ABOUT WHY. THIS IS HIS MEDIA COMPANY THAT SPARKED, AND HE COULD FINALLY COME INTO THE TUNEUP, IS A $2 BILLION? BAILEY: RIGHT NOW IT IS $2.2 BILLION. IT DEPENDS ON WHERE SHARES ARE TRADING. ALL THINGS BEING EQUAL DONALD TRUMP COULD START SELLING DOWN THAT STEAK, WHICH WOULD BE MAGNITUDES HIGHER IN TERMS OF VALUE THAN HE HAS HAD IN ANY

OTHER VENTURE. ED: I KIND OF WANT TO GO BACK TO BASICS. WE ARE ESSENTIALLY TALKING ABOUT A LOCK-UP EXPIRY, AND WE ARE TALKING ABOUT A FORMER PRESIDENT AND AN INSIDER WHO CAN SELL SHARES. IT IS JUST A WONDERFUL STORY. IF ME BASICS IN MORE DETAIL, PLEASE. BAILEY: THIS COMPANY WENT PUBLIC IN MARCH. SIX MONTHS FROM THAT DEBUT, ON MARCH 26, HE WOULD BE ABLE TO SHARE -- SELL SHARES, ALONGSIDE THOSE COFOUNDERS, FORMER APPRENTICE PARTICIPANTS, AS WELL AS THE FINANCIER BEHIND THE SPAC THAT TOOK A PUBLIC. RELATED TO THAT, YOU HAVE TO WAIT ABOUT SIX MONTHS TO BE ABLE TO START SELLING THAT DOWN. THE BIG QUESTION IS, WILL HE START SELLING?

HOW QUICKLY WOULD THAT LOOK LIKE? HOW WOULD THAT PRESSURE SHARES? WHEN I TALKED TO INVESTORS, THE EXPECTATION IS THAT THE COFOUNDERS AND SPAC FOUNDERS LIKELY WOULD HAVE EVERY INCENTIVE TO SELL SHARES AS QUICKLY AS POSSIBLE, GIVEN THE FACT THAT THE COMPANY HAS ONLY GENERATED $1.6 MILLION OF REVENUE FOR THE LAST SIX MONTHS, DESPITE A $4 BILLION VALUATION. IT IS GOING TO BE A TOUGHER NEEDLE TO THREAD FOR DONALD TRUMP, GIVEN THE FACT THAT IT IS POTENTIALLY HIS CROWN JEWEL. THE STOCK DOES TRADE UNDER HIS INITIALS. AND TRYING TO NOT FEEL LIKE HE LEFT SOME OF THOSE FOLLOWERS HANGING WERE HE TO QUICKLY EXIT SHARES. THAT WOULD PRESSURE SHARES TREMENDOUSLY FROM THE LEVEL THEY ARE TRADING AT RIGHT NOW.

CAROLINE: THEY HAVE BEEN PRESCIENT BECAUSE HE RETURNED TO ANOTHER MEDIA SITE AS WELL. BAILEY: HE HAS RETURNED TO X. HE DID A CHAT WITH ELON MUSK LAST WEEK. THE STAYING POWER OF TRUTH SOCIAL BEING HIS MEGAPHONE OF CHOICE, THAT WHOLE IDEA IS BEING THROWN. THE BROADER QUESTION OF WHAT CAN THIS COMPANY TURN INTO, OBVIOUSLY, HAS BEEN IN DOUBT. AT LEAST IF YOU TALK TO TRADITIONAL INVESTORS, SINCE IT REALLY ANNOUNCED THIS DEAL IN OCTOBER 2021. CAROLINE: WE APPRECIATE IT. NOW WE TURN OUR ATTENTION TO ANOTHER NEWS STORY WE WANT TO KEEP YOU UP TO SPEED WITH. BRITISH TECH ENTREPRENEUR MIKE LYNCH AND MORGAN STANLEY INTERNATIONAL CHAIRMAN JONATHAN BLUMER ARE AMONG THOSE FEARED

DEAD AMONG THE SUNKEN WRECKAGE ABOUT A LUXURY YACHT OFF THE COAST OF SICILY. ONE PERSON IS ALREADY CONFIRMED DEAD. SIX OTHERS ARE MISSING. THIS AFTER THE BOAT SANK FOLLOWING A VIOLENT STORM UNDER. LYNCH AND HIS FAMILY WERE CELEBRATING HIS RECENT ACQUITTAL FROM FRAUD CHARGES WITH A SMALL GROUP OF ADVISERS. WE ARE GOING TO CONTINUE TO BRING YOU UPDATES AS WE GET THEM. ED:ED: COMING UP ON BLOOMBERG TECHNOLOGY, BITCOIN BULLS NURSING SOME AUGUST LOSSES. WE ARE SPEAKING WITH A LEADING BITCOIN INVESTOR NAME, ALYSE KILLEEN, AND SHE'S GOING TO TELL US WHAT IS HAPPENING UNDER THE HOOD IN THE CRYPTO MARKET.

THIS IS BLOOMBERG TECHNOLOGY. ED: A TURBULENT END TO TWO JULY FOR MARKETS. BUBBLE ASSET PRICES HAVE LARGELY REBOUNDED, BUT NOT BITCOIN. STILL, INSTITUTIONAL INVESTORS WITHIN THE SPACE REMAIN BULLISH ON BITCOIN, CITING INCREASING FUNCTIONALITY. ALYSE KILLEEN IS THE FOUNDER OF STILLMARK, A LEADING INDUSTRY VC FIRM. IN THE MONTH OF AUGUST SO FAR SOME OF THE ANXIETY HAS BEEN, GOVERNMENT SEIZURE OR HOLDING OF CRYPTO ASSETS IN VARIOUS CONTEXTS AND WHAT THEY MAY OR MAY NOT DO WITH THEM. THAT MAY BE SOMETHING CONTRIBUTING TOWARD DOWNWARD PRESSURE. WHAT HAVE YOU MADE OF SOME OF THE VOLATILITY IN THE SHORT

TERM OF AUGUST SO FAR? GOOD MORNING. ALYSE: GOOD MONEY. BITCOIN'S AUGUST PRICE DROP IS TYPICAL OF THE MARKET CONSOLIDATION THAT -- THAT HAS TYPICALLY HAPPENED WITH BITCOIN AT THIS POINT IN ITS FOUR-YEAR MARKET CYCLE. HAVE SEEN FOR THE PAST SEVERAL MONTHS THAT IT REFLECTS A VERY STANDARD ACTION FOR BITCOIN IN THIS PART OF IT'S MARKET CYCLE. WE ARE NOT SEEING ANYTHING NEW. WE ALSO KNOW THAT BITCOIN HAS BEEN RISKY AS A SHORT-TERM INVESTMENT BUT VERY CONSISTENT AND RELIABLE AS A LONG-TERM INVESTMENT. SO, LONG-TERM INVESTORS ARE STILL ORIENTATED TOWARD WHAT IS MOST IMPORTANT FOR BITCOIN'S PRICE, AND BITCOIN'S ROBUSTNESS, WHICH IS ADOPTION AND EXPANSION OF ITS THREE

UTILITIES. -- OF ITS UTILITIES. ED: WHEN YOU SAY CONSOLIDATION, WHAT DO YOU MEAN BY THAT CHECK HIM THE BASICS OF THAT, PLEASE? ALYSE: SURE. SO, BITCOIN'S FOUR-YEAR CYCLE IS SET BY HAVING AN EVENT THAT DECREASES BY HALF THE AWARD THAT BITCOIN'S MINORS GET WHEN THEY DISCOVER A BLOCK. TYPICALLY AT THIS POINT IN THE CYCLE WE SEE SIDEWAYS TRADING AND THAT HAS HISTORICALLY BEEN PREDECESSOR TO AN INCREASE IN PRICE IN SUBSEQUENT QUARTERS. ANOTHER THING WE SHOULD POINT OUT HERE IS THAT WHAT HAS BEEN NEW AND EXCITING ABOUT THIS CYCLE VERSUS HISTORICAL CYCLES IS THAT BITCOIN REACHED AN ALL-TIME HIGH MUCH EARLIER IN THIS CYCLE THEN IT HAS IN PRIOR, WHICH MAY BE INDICATIVE OF A NEED FOR A COOLING-OFF

PERIOD BEFORE CONTINUED PRICE APPRECIATION. AS I SAID MOMENT AGO, OF COURSE, WHAT IS IMPORTANT IS LONG-TERM FOR BITCOIN, AND THAT IS ABOUT ADOPTION AND BITCOIN'S UTILITY. CAROLINE: YOU HAVE BEEN IN THE SPACE FOR A LONG TIME. ONE OF THE FIRST INSTITUTIONAL PLAYERS IN IT. SO, WEIGHED IN IS THE CATALYST? ULTIMATELY, THOSE WHO HAVE BEEN DRAWN TO THE ASSET CLASS, ARE THEY GOING TO BE THE NEXT WAVE OF EXCITEMENT ABOUT ADOPTION AND USE CASES? ALYSE: THOSE LOOKING AT THE OPPORTUNITY AHEAD OR THINKING ABOUT THREE THINGS RIGHT NOW. THAT IS THE MATURATION OF BITCOIN'S FINANCIAL ECOSYSTEM, GOING FOR PAYMENTS AND THE ACCELERATION OF ADOPTIONS THERE, AND HISTORIC ACTIVITIES THAT WERE POPULAR WERE

POPULARIZED IN THE CRYPTO SPHERE MOVING TO BITCOIN AS THEY MATURE. SO, IN TERMS OF COIN'S FINANCIAL ECOSYSTEM, THE ETF HAS DONE A LOT TO ADD A STAMP OF APPROVAL TO BITCOIN AS AN ASSET. WHAT WE ARE SEEING WITHIN THE DIVERSITY OF ISSUERS IS, COMPETITION START TO EMERGE AMONG ISSUERS IN TERMS OF THE TECHNICAL PRESENTATION OF THE PRODUCT. THAT IS VERY HEALTHY TO SEE. AS AN EXAMPLE OF THAT IS THE INTRODUCTION -- INTRODUCTION OF PROOF OF RESERVES THROUGH BITWISE'S INTEGRATION WITH A STILLMARK PORTFOLIO COMPANY. THAT ALLOWS BITWISE TO OFFER TRANSPARENCY TO HOLDERS OF ITS PRODUCTS THAT BITWISE ACTUALLY HAS THE ASSETS ON HAND, THAT IT REQUIRES FOR ITS USERS, FOR THE

PROMISES THAT WISE HAS MADE TO ITS USERS. WE ARE PLEASED TO SEE THE MARKET MATURE IN THAT WAY. WHAT WE ARE ALSO EXPECTING TO SEE AND HAVE BEGUN TO SEE THE EARLY MOVEMENTS OF IT IS, THOSE NEW TO BITCOIN THROUGH THE ETF BEGAN TO MATURE THEIR PORTFOLIO. IF YOUR EXPOSURE TO BITCOIN IS THROUGH AN ETF, OF COURSE, YOU ARE MISSING SOME OF BITCOIN'S PROPERTIES AND SOME OF THE VALUE BITCOIN CAN OFFER YOU, INCLUDING THE ABILITY TO TRANSACT OR TO AVOID SYSTEMIC RISK. CAROLINE: SORRY TO CUT YOU OFF THERE, BUT ULTIMATELY THE MOVEMENT YOU JUST TALK TOUGH, WHO IS MAKING THAT MOVE? IS IT THE INSTITUTIONAL PLAYERS OR MORE THE RETAIL COMMUNITY? ALYSE: THAT IS A GREAT QUESTION, AND IT IS BOTH.

WHAT THEY ARE DOING IS ENSURING THEIR PORTFOLIO. RETAIL PLAYERS NOW HAVE AN OPTION NOT JUST TO HOLD AN ETF, BUT MATURE THEIR PORTFOLIO BY, FOR INSTANCE, ADDING PRODUCTS LIKE DTC LIFE INSURANCE. THEY ALSO HAVE THE OPTION TO HOLD BITCOIN THEMSELVES, AND THOSE SOFTWARE SOLUTIONS ARE MATURING. WHAT WE SAW VERY RECENTLY, JUST EARLIER THIS SUMMER, WAS THE INTRODUCTION OF WHAT IS KNOWN AS MULTI-SIG SECURITY THAT HAS RELIED ON SPECIALIZED HARDWARE DEVICES, MOVE AWAY FROM THAT RELIANCE, AND WHAT THAT MEANS IS THAT MULTI-SIG SECURITY CAN BE ACCESSED BY PEOPLE THAT WANT TO USE THEIR PHONE OR SOMETHING SIMPLE. CAROLINE: WE APPRECIATE IT. ALYSE KILLEEN, STAY WELL. APPLE. THE COMPANY WILL MAKE THE MOST

EXPENSIVE IPHONE PRO AND MAX MODELS IN INDIA. APPLE'S PUSH TO INDIA STARTED GATHERING STEAM THREE YEARS AGO. CAROLINE: WELCOME BACK TO BLOOMBERG TECHNOLOGY. I'M CAROLINE HYDE IN NEW YORK. ED: AND I'M ED LUDLOW IN SAN FRANCISCO. I WANT TO SHOW -- SHARE A CHART. IN THE LAST HOUR MAJOR INDICES WENT THE OTHER DIRECTION, BUT WHAT IS SO INTERESTING IS THE NASDAQ 100 AND BEEN ON TRACK FOR A NINTH-STRAIGHT DAY OF GAINS. THE EIGHT DAYS THROUGH MONDAY NIGHT SESSION, WITH THE BIGGEST JUMP OVER AN EIGHT-DAY PERIOD GOING BACK TO 2022. YOU KNOW WE ARE TALKING ABOUT TREADING WATER TO JACKSON HOLE ON FRIDAY OR NVIDIA'S EARNINGS, THERE IS A BIT OF MOMENTUM RIGHT NOW IN TECHNOLOGY SHARES,

AND I FIND THE NASDAQ TO BE A GREAT INDEX TO TRACK, EVEN THE MEGA CAP PRESENCE, BUT ALSO THE SOFTWARE NAMES. THERE IS ONE SPECIFIC NAME I'M LOOKING AT, PALO ALTO NETWORKS. INTRADAY ON TRACK FOR ITS BEST SINCE FEBRUARY. IF IT CLOSES AT THIS A PERCENT GAIN, A STRONG OUTLOOK PARTICULARLY ON THE BOTTOM LINE, BOOSTING THE SHARE BUYBACK. THIS IS A COMPANY THAT WARNED US -- WARNED US IN FEBRUARY THAT SOME OF THE CYBER SPENDING ONE OF AMERICA'S LEADING CYBER NAMES WAS SLUGGISH. THAT DOESN'T SEEM TO BE THE CASE AT THIS TIME. LET'S GET INTO IT. CAROLINE: THE PERFECT PERSON TO, NIKESH ARORA, CEO OF PALO ALTO NETWORKS. MOST NOTABLE IS SUDDENLY

ANALYSTS POINTING OUT THAT MOST IMPORTANTLY YOU ARE CONTINUING TO TAKE SHARE VIA CONSOLIDATION. WHO DO YOU TAKE THAT SHARE FROM? HOW DO YOU TAKE IT? NIKESH: THANK YOU VERY MUCH FOR HAVING ME. CYBERSECURITY IS A VERY FRAGMENTED INDUSTRY, DESPITE BEING THE LARGEST PLAYER. SO, THE ENTIRE INDUSTRY IS FULL OF MANY SMALL PLAYERS. PART OF THE OPPORTUNITY, WHICH WE HAVE ALIGHTED UPON, HAVE BEEN WORKING HARD OVER THE LAST SIX YEARS, IS TO CONSOLIDATE OUR CUSTOMER'S PORTFOLIO TO A SIMPLE PLATFORM THAT ALLOWS THEM TO CONSOLIDATE A LOT OF THE VENDORS THEY HAVE, THERE BY GETTING THEM BETTER SECURITY AT A LOWER COST TO OPERATE. THAT IS WHAT ENDS UP HAPPENING, WHERE WE TAKE SHARE FROM A LOT OF SMALL PLAYERS WHO EITHER IT

IS TIME FOR THE MARKET TO START CONSOLIDATING ANYWAY. CAROLINE: SEEING A SEQUENTIAL INCREASE THERE, BUT HOW MUCH WILL YOU TAKING SOME MARKET FROM A RATHER BIGGER PLAYER AS PEOPLE LOST FAITH IN CROWDSTRIKE, FOR EXAMPLE? NIKESH: A LOT OF OUR PLATFORMIZATION IS THAT WE ARE TRYING TO GIVE CUSTOMERS THE ABILITY TO CONSOLIDATE A SET OF ACTIVITIES ACROSS THEIR CYBERSECURITY LANDSCAPE. WE ARE SEEING SHARE FROM BUSINESSES AROUND 50 TO 70 YEARS. ESSENTIALLY LEGACY TECHNOLOGY. WE ARE SEEING SHARE CONSOLIDATING FROM SMALLER PLAYERS. WE ARE SEEING SOME COMPETITION, BUT THE OUTAGE IS A DIFFERENT MATTER. THAT IS NOT THE PRIMARY REASON FOR US TO GET SHARE IN THE MARKET.

IT IS LOWER COST OF OPERATION AND GREATER SECURITY OUTCOMES. ED: YOU KNOW ME. I WANT TO GET THE BASICS. SOME SPECIFIC NEW CUSTOMERS. YOU SPECIFICALLY SIGNED A SOME DEALS BECAUSE OF WHAT HAPPENED. NIKESH: THE CROWDSTRIKE OUTAGE, WHICH WAS WIDESPREAD, BECAUSE MANY OF OUR CUSTOMERS TO ASK. WE WERE QUICK TO RESPOND BECAUSE WE RUN IT FUNDAMENTALLY DIFFERENTLY THAN SOME OF OUR COMPETITORS DO. THAT GAVE OUR CUSTOMERS COMFORT. WHILE WE WERE IN MIDFLIGHT THERE WERE REASSURED BY THE FACT WE DO IT DIFFERENTLY AND IT IS UNLIKELY TO HAPPEN TO US. GOT BUSINESS FROM THOSE CUSTOMERS TRYING TO DECIDE WHETHER THEY SHOULD GO WITH US OR SOMEBODY ELSE.

I THINK THAT WAS HELPFUL. CUSTOMERS ARE MORE WILLING TO GIVE US CONSIDERATION ON THEY FEEL LIKE WE HAVE VERY GOOD PRODUCT ON THE MARKET AND THEY DON'T HAVE TO GO WITH ONLY ONE VENDOR IN THAT PARTICULAR CATEGORY. ED: RPO'S, REMAINING PERFORMANCE OBLIGATIONS, IT IS SOMETHING WE DISCUSSED IN A NUMBER OF THEATERS, SURFACE NOW FOR EXAMPLE. YOU HAVE STATED YOU PREFER THAT AS A MEASURE, AND YOU GUYS KNOW, BECAUSE YOU DO THE TIME WITH THEM, SOME OF THE SELL SIDE ARE NOT AS OPTIMISTIC THAT IT IS A GOOD MEASURE OF PERFORMANCE. WHY ARE YOU STICKING WITH IT? NIKESH: LOOK, THE SELL SIDE ADAPTS TO WHAT COMPANIES TELL THEM AND HOW COMPANIES MEASURE THEIR BUSINESS. WHAT IS IMPORTANT FOR US IS TO

EXECUTE ON OUR PLATFORMIZATION STRATEGY. WHAT ARE THEY DOING IN THE SHORT-TERM TO MAKE SURE WE ARE ABLE TO PAY OUR BILLS, DELIVER ON A CONSISTENT BASIS AND IN THE SHORT TERM? YOU THINK THE BEST MEASURE IS REVENUE AND SPEND. WE SPENDING JUST ENOUGH TO DELIVER PROFITABILITY? WE ARE TRYING TO MAKE SURE WE HAVE A LARGE, CONTRACTED BUSINESS SO WE ARE NOT CHANGING THINGS AT THE LAST MINUTE. THE RPO IS A GOOD INDICATOR OF THE LONG-TERM BUSINESS YOU HAVE TO DELIVER AND IT IS GOING TO SHOW UP AS REVENUE. AS LONG AS YOU KEEP GROWING THAT BUSINESS RAPIDLY YOUR CUSTOMERS, YOUR SHAREHOLDERS SHOULD KNOW THERE IS A LOT OF BUSINESS WE ARE GOING TO DELIVER. AND ALLOWING US TO DELIVER GREAT PROFITABILITY.

AS SIMPLE AS THAT. CAROLINE: WITHIN THAT SIMPLICITY, HOW MUCH CAN YOU BREAK OUT WHAT AI AND THE ADOPTION IS DRIVING YOUR BUSINESS FOR US? NIKESH: WE ARE EXCITED ABOUT OUR AI CAPABILITIES AND PORTFOLIOS. WE WENT TO THE DRAWING BOARD AND SAID, WHAT IS GOING TO HAPPEN WHEN CUSTOMERS WANT TO USE A I? THE COMPANIES HAVE NO IDEA WHAT THESE PEOPLE ARE USING. THEY HAVE NO IDEA HOW TO CONTROL THEIR USAGE OF AI. THEY HAVE NO IDEA WHAT DATA ARE GOING TO BE USED BY AI. WE HAVE LAUNCHED A SUITE OF PRODUCTS THAT ALLOW YOU TO MONITOR HOW AI IS BEING USED, TO MAKE SURE YOUR DATA DOES NOT GET OUT THERE AND TRAIN MODELS IF YOU DO NOT WANTED IT TO. GIVE YOU SOME VISIBILITY AS TO WHAT IS HAPPENING. IF YOU ARE TRYING TO DEPLOY AN

APPLICATION. WE HAVE THE ABILITY TO GIVE YOU A RING AROUND YOUR APPLICATIONS TO GAIN A FIREWALL. THAT COUPLED WITH THE FACT THAT WE HAVE INFUSED AI INTO OUR PRODUCTS HAS ALLOWED US TO DELIVER $200 MILLION SO FAR IN THE CATEGORY OF AI SECURITY, WHICH WE THINK IS AN INDUSTRY FIRST. CAROLINE: GIVE US THE BIRD'S EYE PERSPECTIVE. THE WHOLE MARKET IS GRAPPLING WITH WHETHER THE AMOUNT OF MONEY GOING INTO AI IN TERMS OF INFRASTRUCTURE IS A LONG-TERM RETURN THEY ARE GOING TO BE GETTING FROM. DO YOU THINK THERE IS HYPE WITHIN AI ADOPTION OR DO YOU SEE THE LEVEL OF ADOPTION FROM YOURS IS SHOWING THAT THIS IS REAL? NIKESH: I WAS AN ANALYST IN THE LATE 1990'S AND I REMEMBER THE HYPE.

WE SAW WITH THE INTERNET. EVERYTHING WENT UP INTO THE RIGHT QUICKLY. LOOK FOR 25 YEARS LATER, EVERYTHING WAS REAL. THE QUESTION IS NOT WHETHER IT IS REAL, IT IS THE QUESTION OF, WHAT IS THE TIMING OF IT AND HOW DO YOU INVEST? FROM OUR PERSPECTIVE, WE EXPECT THERE WILL BE WIDESPREAD USAGE OF AI. WE THINK IT WILL CHANGE HOW WE CONDUCT BUSINESS. THE QUESTION IS THE TIMING OF IT. YOU CANNOT EXECUTE ON IT IF YOU DO NOT HAVE THE INFRASTRUCTURE. WHETHER IT IS THE RIGHT AMOUNT OF INFRASTRUCTURE BEING BUILT AT THIS POINT IN TIME, I DO NOT WANT TO COMMENT. THERE IS GOING TO BE A CONSUMPTION AND WE ARE GOING TO BE TALKING AI FOR SOME TIME. ED: IT IS GREAT TO HAVE YOU BACK HERE ON BLOOMBERG TECHNOLOGY. THANK YOU VERY MUCH. U.S.

CYBER FIRMS ARE WARNING THAT PROPOSED REGULATIONS IN HONG KONG COULD GRANT THAT GOVERNMENT UNUSUAL ACCESS TO THE FIRM'S COMPUTER SYSTEMS. THE WARNING COMES FROM A NUMBER OF TECH GROUPS THAT DO BUSINESS IN HONG KONG, INCLUDING AMAZON, GOOGLE, AND MET UP. THE PROPOSED RULES ARE DESIGNED TO PROTECT CRITICAL INFRASTRUCTURE FROM CYBERATTACKS. CAROLINE? CAROLINE: COMING UP, BRACE YOURSELF. WE ARE GOING MACRO. THE RATE CUTS WE ARE ANTICIPATING TO COME. WHAT DOES IT MEAN FOR VC'S? BRADLEY TUSK IS JOINING US ON HOW VCS ARE PREPARING FOR THE WORLD AROUND THEM TO CHANGE. FIRST, WHERE ELSE IS CHANGING? EUROPE, WHEN IT COMES TO WHO IS BUILDING CHIP MANUFACTURING EQUIPMENT AND BREAKING GROUND.

A GERMAN PLANT BY TSMC STARTING TODAY. 10 BILLION EUROS GERMAN PLANT. THIS IS ABOUT THE CHIPPED WAR AND WANTING TO BRING SUPPLY CHAINS CLOSER TO HOME MID TENSION. WE ARE OFF BY 2% ON TSMC'S DEPOSITORY RECEIPTS. THIS IS BLOOMBERG TECHNOLOGY. CAROLINE: LET'S JUST LOOK AHEAD TO JACKSON HOLE AND GET A READ ON VENTURE CAPITAL'S VIEW OF A POTENTIAL RATE FROM THE FED. TUSK VENTURES CEO AND COFOUNDER BRADLEY TUSK JOINS US. IS THE MACRO PICTURE ALL-ENCOMPASSING RIGHT NOW? ARE YOU FACTORING IN RATE CUTS AND AN ENERGIZED VC COMMUNITY? BRADLEY: WE ABSOLUTELY NEED SOMETHING TO CHANGE. THERE HAS BEEN A TERRIBLE LACK

OF LIQUIDITY IN THE VC MARKET SINCE 2021. AND WE ARE WAITING FOR SOMETHING TO SHAKE IT LOOSE. INTEREST RATE CUTS ARE CERTAINLY PART OF THAT EQUATION. THE LESS ATTRACTIVE FIXED INCOME IS, THE GREATER FIXED INCOME -- THE GREATER AN ALTERNATIVE. IT IS NOT THAT PRESIDENT BIDEN HAS BEEN BAD FOR VENTURE CAPITAL, BUT OTHER THAN HIS FIRST YEAR, THERE HAS BEEN NO LIQUIDITY AT ALL. SEEING A CHANGE IN PRESIDENT, IN REGULATORS, A NEW FTC CHAIR, CAN ONLY HELP. CAROLINE: IT IS INTERESTING. WE HAVE HAD BIG VALUATION CUTS FROM THE PUBLIC SIDE WHEN IT COMES TO SOME OF THE LOSSES WE HAVE SEEN PRIOR TO WOULD HAVE BEEN A RUN-UP IN THE MARKETS. I THINK OF WHO THIS HAS HURT, THE TIGER CUBS, FOR EXAMPLE.

WE JUST HAD THE NEWS THAT ONE KEY GOAL IS CLOSING HIS $11 BILLION FIRM, SETTING SOME HEALTH ISSUES. HOW MUCH TURNOVER DO YOU EXPECT TO SEE IN PRIVATE INVESTMENT WHEN -- WHEN IT COMES TO BC AND PUBLIC EQUITIES? BRADLEY: A LOT. TOO MANY FUNDS WERE RAISED IN THE BOOM PERIOD FROM 2017 TO 2021. TOO MUCH MONEY WAS RAISED. WE SIRI -- WE SEE IT IN SERIES A. I DON'T NEED A 400 MILLION DOLLARS EARLY-STAGE FUND. SURE, THAT MAKES ME MORE MONEY IN MANAGEMENT FEES AND TRANSFERS THE RISK TO MY LPS, BUT THAT IS NOT GOOD FOR THEM AND IT DOESN'T HELP US MAKE A LOT OF KERRY. THE REALITY IS YOU DO NOT NEED FUNDS THAT ARE SO BIG.

THE REASON WHY COMPANIES WERE OVERVALUED IS VCS RAISED FUNDS THAT WERE TOO BIG, AND THEY COULD NOT WRITE A CHECK FOR $5 MILLION. IT HAD TO BE FOR $20 MILLION. EVERYTHING WAS WAY OUT OF WHACK, AND IT WOULD GET TO THE PUBLIC MARKETS, AND THEY WOULD CUT THE VALUATIONS BY 70%. RIGHTFULLY SO. A LOT OF PRIVATE TECH IS VERY VALUABLE. THAT DOESN'T MEAN WE WORK SHOULD BE WORTH $40 BILLION. HE WAS NEVER MORE THAN A $2 BILLION COMPANY. THERE IS PROBABLY A RETURN TO RATIONALITY TO THE MARKET. WHEN THERE IS NO LIQUIDITY AT ALL, WHAT YOU SEE IS SIGNIFICANT DECLINE IN EARLY-STAGE INVESTMENT. THAT REDUCES NEW TECHNOLOGY DEVELOPMENT AND GROWTH. YOU WANT MORE RATIONAL.

VALUATIONS, BUT IT -- BUT YOU ALSO WANT MORE ACTIVITY. ED: I WOULD LOVE TO HELP OUR AUDIENCE KIND OF UNDERSTAND A BIT WHAT IT IS LIKE TO BE A VENTURE CAPITALIST IN THE CONTEXT OF A LIQUIDITY CRUNCH LIKE YOU TALKED ABOUT. IF YOU ARE A BC AND YOU HAVE THESE OPPORTUNITIES ON YOUR DESK, TERM SHEETS YOU WANT TO SIGN, WHY IS THIS IMPENDING RATE CUT A CHALLENGE? WHAT CHANGES MECHANICALLY? BRADLEY: WHEN THERE IS NO LIQUIDITY YOU HAVE A FEW PROBLEMS. YOU CANNOT RECYCLE PROCEEDS. WE WILL HAVE LIQUIDITY WITHIN A FUND, AND USE THAT MONEY, BECAUSE THE FUND PERIOD HAS NOT COMPLETED YET, TO REINVEST. THAT CREATES MORE ECONOMIC ACTIVITY ALL THE WAY AROUND.

TWO, WHEN THERE IS MORE LIQUIDITY, YOUR LPS ARE SEEING RETURNS AND RE-UPPING FOR NEW FUNDS, SO THERE IS MORE ACTIVITY THERE AS WELL. EVERYTHING IS MOVING IN A SLOWER PLAY -- A SLOWER PACE WHEN THERE IS NO MONEY GOING OUT THE DOOR. IT SLOWS EVERYTHING DOWN CONSIDERABLY. THE OTHER PROBLEM IS THE TEMPTATION AROUND AI. THE ONE PLACE WHERE VALUATIONS HAVE REMAINED REALLY HIGH IS THE AI SECTOR. AND, IS THERE A LOT OF LONG-TERM POTENTIAL IN THE SPACE? OF COURSE. BUT WE KEEP SEEING COMPANIES WITH $1 MILLION OR TWO MILLION DOLLARS IN REVENUE ASKING FOR $100 MILLION VALUATIONS. AND THAT IS CRAZY. ED: I DON'T MEAN TO CUT YOU OFF. WE ARE SHORT OF TIME.

PRESIDENTIAL ELECTION. WHICH CANDIDATE IS THE CANDIDATE OF THE VENTURE CAPITALISTS? BRADLEY: ULTIMATELY I AM SUPPORTING HARRIS. I HAVE GIVEN HARRIS MONEY BECAUSE I BELIEVE A GOVERNMENT THAT IS TRUSTWORTHY AND FUNCTIONAL IS BETTER THAN THE CHAOS OF TRUMP. ED: TUSK VENTURES CEO AND COFOUNDER, BRADLEY TUSK. BRADLEY: APPRECIATED. ED: BLACKSMITH: -- BLACK MYTH: WUKONG HAS BECOME THE SECOND-MOST POPULAR TITLE ON STEAM WITH MORE THAN 2 MILLION CONCURRENT PLAYERS. THAT IS MORE THAN HYPED TITLES LIKE ELTON RING. -- ELDEN RING. COMING UP ON THE SHOW, WE ARE GOING TO HEAR FROM THE FOOD TV CEO DAVID GANSLER REACTING TO

THE COMPANY'S SHARES, WHICH SURGED AFTER A JUDGE BLOCKED DISNEY'S STREAMING SERVICES. THIS IS BLOOMBERG TECHNOLOGY. ED: EDGAR BRONFMAN JUNIOR HAS FORMALLY SUBMITTED A 4.3 BILLION DOLLAR BID TO TAKE CONTROL OF PARAMOUNT GLOBAL AND QUASH AN EXISTING OFFER FROM GUIDANCE MEDIA. THAT IS ACCORDING TO A BLOOMBERG SOURCE. BRONFMAN IS EXPECTED TO ARGUE THAT HIS PROPOSAL IS SUPERIOR BECAUSE IT WILL RESULT IN LESS DILUTION FOR PARAMOUNT'S NON-REDSTONE SHAREHOLDERS. CAROLINE: MEANWHILE, FUBOTV SOARING AFTER FOX AND WARNER BROS. DISCOVERY AND DISNEY WERE BLOCKED BY A JUDGE FROM LAUNCHING THEIR STREAMING SPORT SERVICE ONE WEEK OUT OF ITS ROLLOUT.

DAVID GANDLER JOINED BLOOMBERG YESTERDAY TO REACT TO THE NEWS. TAKE A LISTEN. DAVID: THE CONSUMER IS THE BIG WINNER TODAY. YOU KNOW, THE JOINT VENTURE ATTEMPTED TO DEPRIVE CONSUMERS OF CHOICE AND AFFORDABILITY. IT ATTEMPTED TO ELIMINATE COMPETITION AND MANIPULATE PRICING. AND I THINK THE EVIDENCE WAS QUITE CLEAR, GIVEN THAT THE BAR IS SO HIGH AND WE ARE HAPPY THE JUDGE HAS AGREED WITH US. >> SO IT IS LIKELY YOU WILL MAKE A CASE AGAIN BEFORE THE COURT. WHAT YOU GOING TO BE DOING BEFORE THEN? IT IS NOT CLEAR HOW LONG THIS INJUNCTION WILL LAST. DAVID: WE DO NOT HAVE A DATE YET SET FOR THE TRIAL, WHICH COULD BE IN 2025 OR 2026.

FUBO TODAY IS FOCUSED ON THE FALL SPORTS CALENDAR. WE ARE NOT FOCUSED ON ANY UP -- ANY POTENTIAL APPEAL. THE BALL IS IN THEIR COURT. YOU WILL CONTINUE TO FOCUS ON OUR BUSINESS AND CONTINUE TO ACHIEVE PROFITABILITY AS WE HAVE FORECASTED IN 2025. ROMAINE: I AM CURIOUS ABOUT THE STRUCTURE OF THAT DEAL. THIS IDEA THAT THEY WERE ASKING -- I'M NOT -- I'M NOT SURE IF IT WAS SPECIFICALLY YOU, BUT THEY WERE ASKING RIVALS IF THEY WANTED THE SPORTS PROGRAMMING. THEY ALSO HAD TO TAKE ADDITIONAL PROGRAMMING AS WELL. IS THAT TRUE? DAVID: THAT IS CORRECT. ONE OF THE ARGUMENTS WE WERE ATTEMPTING TO MAKE IS NOT ONLY WHERE THEIR EXCESSIVE ABOVE MARKET RATES WE WERE DEALING WITH, EXCESSIVE PENETRATION

RATES, WHICH IS THE NUMBER OF SUBSCRIBERS THAT HAVE ACCESS TO EACH OF THE NETWORKS, WHICH COMES AT A HIGHER COST. IT IS -- IT IS ALSO THE BUNDLING OF UNWANTED CHANNELS TO ACCESS MUST-HAVE SPORTS PROGRAMMING. THOSE ARE THE KEY ELEMENTS OF THE TRIAL, AND WE BELIEVE THAT, YOU KNOW, WE WERE ABLE TO PROVIDE THE JUDGE WITH SUFFICIENT AND CREDIBLE EVIDENCE FOR HER TO JUDGE IN OUR FAVOR. ED: THAT WAS DAVID GANDLER. LET'S DISCUSS WHAT THIS MEANS FOR THE FUTURE OF SPORT STREAMING WITH PAUL PASTOR, CHIEF BUSINESS OFFICER OF THE CLOUD PLATFORM QUICKPLAY, BUT ALSO A FORMER DISNEY PLUS AND HULU EXECUTIVE. YOU ARE AN ALUM. YOU HAVE SOME DIRECT HISTORY. YOUR REACTION TO THE COMMENTS

THERE? PAUL: THANK YOU FOR HAVING ME. I AGREE AND DISAGREE WITH DAVID'S STATEMENT IN TERMS OF WHAT IS HAPPENING FOR THE CONSUMER. I AGREE THAT THE COURT LAID OUT AN ARGUMENT THAT SAID IT IS UNFAIR TO HAVE A PRACTICE THAT THEY COULD NOT AVAIL THEMSELVES, THAT BEING FUBO, OF THE MARKET RATES THE NEW VENTURE WAS HAVING. AND IMPORTANTLY, THEY COULD NOT UNBUNDLE THE NETWORKS PART OF ADVENTURE. FOR THE CONSUMER, THEY ALSO LOSE. THIS ABILITY TO AGGREGATE THE OFFERING, TO BE ABLE TO OFFER DISCOVERY TOOLS, THESE ARE THINGS CONSUMERS WANT AND ARE SEEKING UPWARD. THIS IS BOTH A WIN FOR THE CONSUMER IN THE FACT THAT DAVID IS PUSHING FOR MORE AVAILABILITY AND PRICING.

FLEXIBILITY WITHIN THE BUNDLE, BUT ALSO A LOSS IN TERMS OF THE INNOVATION THAT COULD BE APPLIED IN GENERAL. ED: REGULAR VIEWERS OF THIS PROGRAM KNOW I AM A PASSIONATE LONG-STANDING CHELSEA SEASON-TICKET HOLDER. FOR FOOTBALL, I HAVE PEACOCK. I HAVE CBS IF WE WERE EVER TO GET BACK INTO EUROPE. I HAVE SLING, SO I CAN GET FOX SPORTS. WHY DO I NEED VENUE? PAUL: YOU AND I ARE ALIKE. I HAVE TO BUY A PACKAGE TO GET TO MY TENNIS CHANNEL. ONE OF THE HARDEST VALUE PROPOSITIONS HERE IS TO COMMUNICATE TO A CONSUMER THAT THIS BUNDLE AND VENUE ACTUALLY DOES NOT DELIVER ALL OF THE SPORTS THEY ARE LOOKING FOR. IT IS ONLY AN EFFICIENT WAY TO CONSUME THE THINGS IN THOSE

CHANNELS. THIS WAS A VERY STRONG VALUE PROPOSITION WHEN WE DID THIS WITH HULU, ABC, FOX, AND NBCU AT THE TIME. THERE IS VALUE CREATED. THERE IS AN ABILITY TO SPEAK TO THE VALUATE CREATES. BUT IT DOES NOT SOLVE THE PROBLEM OF HOW YOU MANAGE YOUR SPORT RIGHTS. CAROLINE: ADD IN THE NBA RIGHTS MOVING TO AMAZON. PAINT A PICTURE OF WHAT THE NEXT SPRING SEASON, WHAT SPORTS LOOKS LIKE I'M A HOW WE ARE GOING TO BEST INTERACT WITH IT, DO YOU THINK, VIA STREAMING? PAUL: I THINK RIGHT NOW WHAT WE SAW, THE NBA JUST CAME TO MARKET. WHAT WE SAW CLEARLY WAS THAT AMAZON CAME IN AND UNDERSTOOD THAT THERE WAS A PLACE FOR THEM TO PLAY IN THIS, AND ULTIMATELY STREAMING RIGHTS WILL GO TO AMAZON IN ADDITION TO BEING

SHARED ACROSS A NUMBER OF OTHER SERVICES. WHAT THIS ULTIMATELY MEANS IS, THERE IS STRONG VALUE IN SPORTS. IT DELIVERS IMPACT TO BOTH ADVERTISING AND BUSINESSES BEING MANAGED. THE CHALLENGE IS THAT FOR CONSUMERS, IT IS GOING TO REMAIN A VERY DIFFICULT LANDSCAPE TO NAVIGATE. WHILE THE PACKAGE LOOKED TO BRING TOGETHER SOME OF THOSE RIGHTS AND OFFER A MORE EFFICIENT WAY TO BE ABLE TO CONSUME A CERTAIN AMOUNT OF SPORTS RIGHTS, IT DOES NOT SOLVE THE ULTIMATE PROBLEM OF HAVING TO NAVIGATE ACROSS MULTIPLE SERVICES, SEEK OUT OR THEY MIGHT BE. CAROLINE: THE STRUGGLE IS REAL FOR SPORTS LOVERS. PAUL PASTOR, WE THANK YOU SO MUCH. CHIEF BUSINESS OFFICER AT QUICKPLAY.

THAT DOES IT FOR THIS EDITION OF BLOOMBERG TECHNOLOGY. ED: FANTASTIC SHOW. DON'T FORGET TO CHECK OUT THE PODCAST. FROM THE TEAM OVER IN NEW YORK CITY, AND HERE IN SAN FRANCISCO ON THE WEST COAST, THIS IS BLOOMBERG TECHNOLOGY.

EU Tariff on China Teslas, Palo Alto Networks' Earnings | Bloomberg Technology

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Bloomberg Technology

EU's Tariff Impact on Tesla and the EV Market

The EU plans a 9% tariff on Chinese-made Teslas, a reduction from the initially threatened rate.

Tesla's ability to argue for a lower tariff was based on its lesser subsidization compared to other Chinese automakers.

The tariff decision is part of a broader industry-wide impact, affecting not only Tesla but also other manufacturers like Volkswagen and BMW, who are concerned about the competitive pressure from Chinese companies.

EU Tariffs on Chinese Car Imports: Aiming for Local Manufacturing

The EU's tariffs on Chinese old cars aim to promote local manufacturing of electric vehicles and batteries in Europe.

These tariffs are a response to the competitive dynamics and government-level subsidies in China.

The EU is also considering lower duty rates for joint ventures importing electric vehicles, with the goal of localizing the industry in Europe.

Influential Figures Targeting Independent Voters

Prominent politicians are appearing on Fox News to reach undecided voters in swing states, preferring daytime news shows to avoid being seen as propaganda.

Donald Trump is on the verge of selling shares from his media company, potentially generating significant income.

The tragic sinking of a luxury yacht off Sicily has left several people, including a British tech entrepreneur, feared dead.

Bitcoin's August Price Drop and Market Cycle

Bitcoin's price drop in August is typical of its four-year market cycle, with a history of consolidation and sideways trading at this point.

Long-term investors remain focused on Bitcoin's adoption and utility, which are crucial for its price stability.

The maturation of Bitcoin's financial ecosystem, driven by ETFs and competition among issuers, is expected to accelerate adoption and offer new opportunities for investors.

Palo Alto Networks' Strong Performance and Market Strategy

Palo Alto Networks is experiencing a significant intraday gain, boosting its share buyback and showing a strong outlook.

The company's CEO, Nikesh Arora, highlights the fragmented cybersecurity industry as an opportunity for consolidation, taking market share from smaller players and businesses with legacy technology.

The company's unique approach and quick response to competitors' outages have helped them gain new customers and build a strong contracted business for long-term growth.

The company has generated $200 million in AI security, claiming to be an industry first.

There is ongoing debate about the long-term return on investment in AI infrastructure, with the speaker emphasizing the importance of timing and execution.

cyber firms are warning that proposed regulations in Hong Kong could grant the government unusual access to their systems, while TSMC is starting a €10 billion chip manufacturing plant in Germany.

Venture Capital Challenges and Market Dynamics

Venture capitalists face difficulties during liquidity crunches, as they cannot recycle proceeds or reinvest funds, slowing down economic activity.

The high valuations in the AI sector are causing tension, with companies seeking unrealistic funding.

3 billion bid for Paramount Global, while FuboTV's shares surged after a judge blocked Disney's streaming services.

The trial highlights the high cost of subscriber rates and the bundling of unwanted channels for must-have sports programming.

The court's decision may lead to more availability and pricing flexibility for consumers, but it also risks losing innovation in the market.

The upcoming NBA rights moving to Amazon and other services will create a complex landscape for consumers to navigate in their pursuit of sports programming.