caroline: i'm caroline hyde. this is "bloomberg technology.” we talk layoffs.

salesforce and vimeo are the latest to announce cuts to curb spending. we break down the most vulnerable areas in tech this year. tesla rebounds after cathie wood buys the dip. we dig into the bull and the bear case for the ev maker. generated tech. the next big thing in silicon valley. we discuss the risks and rewards for ai based platforms. but first, let us check in on those markets because it was a topsy-turvy sort of day. we saw a breakdown in the selloff after two days, the s&p 500 up. similar moves, the nasdaq. so, big tech managing to push higher in the face of what was pretty hawkish minutes coming out of the federal reserve. they were published at 2:00 p.m. today. it really felt as though many were caught offguard a little bit about the determination of the federal reserve to crack down on inflation. that took the wind out of the sales of the market. we managed to get a pickup in

trade in the very last hours. this really seems to be more focusing on the data we got. slider inflation data is cooling. the beginning of trade. we also look at a very resilient jobs data. and that makes many cautious to really be buying into technology. and related stocks elsewhere, as we still worry about how much further the federal reserve has to hike rates. we are looking at a two year yield reflecting that. let's go micro. let's go individual. microsoft up by more than 4%. worst day since october. ubs saying azure, the big focus on cloud, maybe the slowdown is on us. maybe it is not just the fact that corporate's are having to pull back on spending. we see some aging in the overall growth story for microsoft. salesforce picking up more than 3.5%. that, as we dig into the layoffs of that company, another company having to lay off and focus on margins, trying to cut back spending. micron, more than 7% higher alongside other key chipmakers.

nvidia and the like. we got news earlier that china could be curtailing some of its big spending on making a chip competitor to take on the u.s. so we have a galvanized state for asia and those companies. tesla. after being battered and bruised, we have a tick up. up more than 5%. it can sink more than 12% in previous days trade. tesla getting a little bit of action as we see cathie wood and the etf she runs buying the dip. more on that story later. let's talk about money being put to work in the world of technology, and more broadly in u.s. stocks. liz young is with us to talk about the mood music around investors at the moment. there is caution, worry, more macro headwinds to come. >> yes, there is, but none of it is really new. a lot of it left over from december.

a rough month in december. especially a time when it is supposed to be the year-end rally. none of that came to fruition. investors heard again from the fed about their determination to keep rates higher. again, not new news. so anybody caught flat-footed on those minutes has not been paying attention. here is the good news. we may know by the end of the first quarter whether or not they are done hiking. right now the only thing baked in is 25 basis points in february, another 25 in march. and that might be the end of raising rates. and then we have to figure out how long they pause. caroline: to that end, have we seen enough of that starting to be baked into the overall valuations? particularly in the world of technology? we have seen the big tech names like apple really rolling over. have we baked in enough of the bad news when it comes to interest rate hikes? liz: i think we have baked in

the idea of monetary tightening. so that happened largely in 2022. obviously the huge drawdowns we saw, particularly growth the areas of the market. what is not yet baked in is whether or not we are going to confirm a recession. so if we do confirm a recession, and i think we would know that by labor markets starting to crack, then stocks likely need to go down further. usually recessionary drawdowns are beyond 30%. the furthest we have gotten so far is 25%. the other thing that i don't think is baked in is when earning revisions come down even further. right now they are still showing estimates for 2023 as year-over-year growth being flat compared to 2022. i can't imagine that that is going to be the case in an environment where revenues are likely to come down, wage pressures are likely to stay sticky, and companies will see their bottom line and margins get pressured. so i expect earnings to come in and show a contraction in the

range of 5% to 10%. i don't think that is all priced in yet either. caroline: well said. agreeing with you is mike wilson, a perma bear. in terms of his causes last year at morgan stanley. he had this to say when we heard the news out of salesforce of the job cuts of big tech being a cost cut. mike what concerns me about tech : companies is they are growth companies, they want to invest into these downturns. they want to invest aggressively through all periods of time. they are not good at cost-cutting. they're going to be late on that. they will probably not do enough. it will take longer than you think. the margin degradation can be more severe. caroline: is he bracing for more cost-cutting, and indeed perhaps not that effective cost-cutting coming from big tech? liz: look, i have a lot of respect for mike. i have been called a permabear because i continue to be cautious. so, i align with a lot of

things he's saying. tech companies cutting cost, he is probably right, they are not used to doing that. growth companies to reinvest in the business. that is the idea. that is why you don't find a lot of growth companies that pay out dividends or engage in stock buybacks. they are taking the capital available and reinvesting into the growth of the business. where i think any business will suffer in 2023 is and what he said, if they wait too long to cut costs. if and when the labor market starts to show signs of weakness, the consumer likely pulls back. that can happen very quickly. and if companies are only modeling out one quarter, one half of the year at a time, they might not cut costs quickly enough in order to pave it and pivot and catch that revenue degradation that could happen as a result of lower consumer spending. caroline: what are some of the upside risks? liz: the upside risks are that if we do have a recession, we

need to continue paying attention to the fact that it would reset the business cycle. i said that in my 2023 outlook, i will keep saying it for the entire first half of the year. we do need to reset the business cycle. we are a decidedly late cycle. in order to get back to early cycle, a recession would reset it. and then we can start talking about where are the opportunities. what are the opportunities we would see in a classic coming out of a recession scenario. and in that case, i would look at cyclicals, small-cap value. if the market gets below 3500, i would start looking at cyclical parts of tech like semiconductors, so we can start to think about that. the other thing it that is positive is bonds are a decent option. they are trading at good valuations. but the time is now before a recession is confirmed. caroline: you are talking treasuries here. what about corporate debt? bloomberg intelligence is anticipating corporate debt to be issued by the big tech companies. liz: yeah, good idea to

distinguish that. i'm talking about treasuries. the time now is in treasuries, particularly two-year treasuries before the recession is confirmed. corporate debt, the way we look at that is typically the spreads. and you can look at the spreads over the 10 year treasury, for example. corporate debt has not shown recessionary valuations at this point. so i would say that corporate debt is kind of in that equity market camp where it is showing some valuation compression, but not enough to say we are ready for the recession to be here or that we have priced in a recession, so i would expect corporate debt and credit spreads in the high-yield space to go out wider before they come back in again. caroline: liz, for our viewers, whether they be a retail investor or institutional investor, are you thinking in the next -- we've got so much uncertainties still, upside risks and downside cautious

trading, is it best to be broad? or, better to do a fundamental analysis on individual companies? is it earnings you look at, or the macro data? liz: well, 20/20 year was absolutely the year of the macro, macro driven environment. 2023 will likely have macro forces taking over our heads in the middle of a rate hiking cycle. but the good news about that is that i think the rate hiking cycle is beginning to mature, that some of those macro forces won't be as interesting to the market like we have already discussed. i think a lot of that monetary tightening has really been baked in. so it is important to look at the fundamentals. it is definitely important to look at the quality of a company and ability to generate revenue and cut costs and manage not only what they are reinvesting in the business, but what they are able to return to shareholders. and that is why dividend strategies have been so popular. because it has been returning some of the value to shareholders. fundamentals are absolutely important.

valuations are probably the most important part of the fundamental story in 2023. caroline: smart words, as we look ahead to what will be another turbulent year, i am sure. liz, we appreciate your time. coming up. the case for netflix and other streaming providers in the year ahead. our guest coming on, he upgraded netflix towards the end of last year and absolutely was the first one to turn around that stock. meanwhile, before we go to break, coinbase has reached a $100 million settlement with new york regulators. half of the money is a fine. regulators found they violated anti-money laundering laws, letting customers basically open accounts with insufficient background checks. the other $150 million? well, that will improve compliance. shares climbed upwards of 12%. disclosure being my husband is a manager over at coinbase. this is bloomberg. ♪

>> the way to think of this is this is a duopoly between google and meta, so control half of the advertising market. what has happened is television with connected tv streaming is digital also, benefiting in the same way digital advertising benefited google and meta. and so uc this growth occurring

in more customers coming into the market -- and so you see this growth occurring and more customers coming into the market. they are spending more. it is diversifying the customer base away from just 1000 or 2000 advertisements to many more. so television is coming on strong as the third big scale channel that is a true digital channel. caroline: mountain ceo mark douglas talking about the advertising industry's shift away to the new players. some of those media names that offer streaming offerings are rallying. and they have been rallying hard. analysts still seem to see weak demand, looser streaming profitability. more cory was the latest to cite concerns on the day. so what is the bull and bear case of media companies, and which streaming offerings are likely to run out? we have the perfect take for you. an analyst to lead the charge on netflix, ken leon. he is the director of equity research at cfra.

talk to us about the immediate short-term rallies we see at some of these companies. i mentioned warner bros. paramount. does it take you by surprise? ken it is really looking at the : business and whether it is a market that will grow, and there will be winners and losers. and we are coming off 2022, where the industry movies and entertainment stocks were down. 50%, so that serves as a bottom come if you will, then it is a question for analysts to figure out if there could be a winner in a highly competitive, newly disruptive area, video streaming, and what that does to their business, including the legacy areas, whether they need broadcaster pay-tv -- broadcast or pay-tv or film. it is complex. we had to sell on netflix most of 2022. we switched to a buy, because doing some soul-searching, and maybe we were a little too severe on the valuation.

netflix should not have traded at a premium to a warner bros., paramount, or discovery, but we think that today they should, because they are really focused on winning. caroline: ok, so talk to us about the focus on winning, whether enough pain and stress, cutting out the extra fat in the margin is preserved over at netflix, particularly the added addition of revenue coming forward. ken: the outlook looks very good for 2023 and 2024 because they will have new revenue streams, coming from advertising, going from zero, but taking some fair share away from the companies you mentioned, google and meta, but also be traditional broadcast areas. there is a secular shift to streaming. and netflix has a management that has been in place for 10 years. they have organically grown a global based technology platform

and library, and shows people want to watch. they have a wide range of rate plans today with a new plan of $6.99, but most of the affluent viewers are paying $19.99 for higher features and hi def. add to that, but are the competitors doing? -- what are the competitors doing? each of these has changing managements. they are dealing with complex mergers. they are not sure what they want to keep or what they want to sell. they are also trying to figure out in terms of how they are going to win the streaming as they hold onto legacy businesses in broadcast or other areas like parks. caroline: yeah. kim: that is very difficult to do, so i think netflix has a chance to outrun its competitors, and we are going to see it in 2023. caroline: it is interesting that you said changing management. almost revolving, when you think about the company that has

parks, one disney. how do you think? is bob iger a net positive for that business at the moment, particularly on the focus of streaming? kim: i have not covered disney or these companies for 10 years. my observation, bob iger is coming back to do the job that was unfulfilled. he made an enormous acquisition in 2019. disney has high debt. they are trying to generate higher cash flow and earnings to return to shareholders. they don't pay a dividend. they don't buy back stock. this disney. the stock is trading below 90. so we have a view that iger will probably do things that will be positive for shareholders. but we are not sure what it is. they have a put call with comcast for hulu. that is a big number. they have to decide from activists like loeb what to do with abc or espn.

and it is complex. at the end of the day, the heart of this company is not video streaming, disney plus. and it is going to be challenging compared to netflix, which is organically 100% focused on video streaming. and that is where viewers are going, advertisers are following. a little bit slower, but they are switching over to the streaming market. and that is really going to benefit the stronger players. caroline: wow. another strong day for netflix trading on the day. up almost 5%. can, great -- ken, great to catch up with you. ken leon. the double raise for netflix next week to a buy. another story we are watching. sticking on the focus of advertising. meta has been fined $440 million by the european union's main privacy watchdog. the penalty has to do with the way users data is used for personalized ads on facebook and instagram. meta has three months to ensure the processing of such

information complies with eu rules. coming up, shares of salesforce rose after a pretty painful announcement. and that is about cutting staff by 10%. more of the restructuring plans for the company, next. and as we had to break, let's take a look at apple. shares losing china after an ugly month. the stock fell 12% in december. market value below $2 trillion. investors are concerned matters could get worse. because, of course, delays and iphone production, china's covid, and weakening demand as the economy slows down. this is bloomberg. ♪ get refunds.com powered by innovation refunds can help your business get a payroll tax refund, even if you got ppp and it only takes eight minutes to qualify. i went on their website, uploaded everything, and i was blown away by what they could do.

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caroline: and look, they keep on

coming. layoffs in the tech industry. this time salesforce announcing it will cut about 10% of the workforce and indeed reduce real estate holdings. joining us now is bloomberg tech reporter brodie ford, who helped analyze what was put out as a statement by the company. do we have hints of where or geographies or anything around these cuts? >> it appears to be very broad-based. i spoke to people from legal, to philanthropy, sales recruiting. when we see a layoff like this, you cut the recruiters and salespeople. there are engineers. it appears pretty broad. everybody knows salesforce is one of the biggest employers in san francisco. it is an equal layoff around their geographies. 1000 people cut from san francisco when downtown is struggling. caroline: to that end, do we worry about san francisco and the real estate therefore? that they will be coming to an

end on their leases? brody: what is funny, they are talking about leases, but they say we are forcing some people back to the office. salesforce said a year or two ago, marc benioff was saying they were never going back. but some salespeople are being forced back to the office, management increasing focus on productivity and these kinds of measures. so are they cutting some real estate? yeah, but the tower is not going anywhere. caroline: even if it was sinking at one point or another. brody: yeah. caroline: brody, is this it in terms of announcements? and more to the point, how does it dent the culture or take away some of the anxiety? there was tumult, reporting with you almost on a daily basis last year about changes at the top of the business, now it will be filtering down. brody: i would say almost no one is surprised there was a layoff. almost everyone said there was that kind of fear in the air. the scale of it is higher than

some unexpected. i was turning the number around 5000 at the time. it is around 8000. so it is large. and no one wants to do rolling layoffs. i don't think management is planning another layoff tomorrow. but hey, this is a worsening macro. they are doing this because they see slowing growth and they need better profits. i don't think we can confidently say this is it. caroline: and our viewers would agree. we took to twitter asking if the worst was behind us, the tech layoffs, and 54% saying there is still more to come. you cover a broad range of companies. is it those focused on selling into corporate businesses? we were hearing about microsoft, the downgrade from ubs. are there weak spots in the tech space right now? brody: for a while, if you were enterprise, you were good. the consumer facing market is in danger. but as the consumers have gotten more in trouble, the people who sell the software are seeing it, too.

so it is it is strictly to the places that are safer. your salesforces, microsofts. so as long as the picture is worsening in terms of consumer demand, it will hit the enterprise players. caroline: thank you. brody ford. salesforce is not the only company with layoffs. vimeo will cut 11% of the full-time workforce. also to focus on their sustainable profitable growth. shares of the video software company rose about 5% on the news. coming up, why cathie wood is not giving up on tesla, and why electric vehicles are front and center at ces. this is bloomberg. ♪

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caroline: >>, use it every day. it makes driving safer less

-- i use it every day. it makes driving safer less stressful and i'm less tired after driving. it is a great product and it improved yesterday while it was sitting in my driveway. the car i own today is better than the car i owned yesterday. it is the pragmatic case. i mean, let's be honest, this is a world-class product that people love and that makes them safer and gets them to and from places easier. i don't expect, that hasn't changed, and we expect it to continue. caroline: welcome back to bloomberg technology. i am caroline hyde in new york. that was our guest talking about tesla which is been under pressure after announcing a delivery miss. another bull is cathie wood no doubt helping bounceback on wednesday. i want to dig into this. seth goldstein is with us. great to catch up with you.

you have a buy on the stock. like many others, you see the price basically doubling to about $231 where the general price target is for this year in the next 12 months for tesla. can you talk us through the reasoning why you think this is a buy the dip moment? seth: yes, so while tesla is shifting into a slower growth mode, the growth is still there. a lot of ancillary businesses like full self-driving are being heavily discounted as well as future cost savings management can implement as they ramp up factories. that will drive margins higher and affect revenue growth, even if revenue growth is still in the high teens instead of the 50% target of management, so we see a lot of upside at the stock in the current prices. caroline: is it a story, show me

stock? what's interesting is, yes they did miss their internal targets. and they missed it. 40% is still strong. do we need to have more clarity, more basic analysis and future guidance coming from tesla so we can set our sights more realistically? seth: yeah, i think that certainly would help. management are saying that we expect the group 50% a year and deliveries of a multi-year period does not really help with year-to-year guidance. especially as they see the impact of an economic slowdown. they are going to start to see some consumers want to hold off on the big ticket item then wait until the next year while we are in a slowdown. the more sort of confidence they can give us around specific targets and numbers on a

year-to-year basis it would certainly help the stock because investors right now are searching for what is the right growth rate. and with a high-growth stop like tesla, even small changes can materially change your valuation for the stock. caroline: yeah, i mean, talk to us about the incentives to be dangled. is that a worry? is it shining a light on the fact that the price point is going to have to change? seth: we do think there will be some small price cuts as tesla will want to make sure as many of its vehicles as possible will come a particular the model three in the model y, will ultimately qualify for the inflation reduction act tax credit. we are modeling price decreases increases for that platform next year to help generate demand growth. that is going to help tesla grow to what we are forecasting a little over 1.6 million deliveries in 2023. caroline: so with all the daily sort of tussles you get, whether

it is on social media or on air like this, whether it is about the worries of it 40% is still good growth rate, whether we should be looking at deliveries rather than demand. from your perspective, what is the thing we should focus on now when it comes to tesla? is it china, delivery, demand? seth: i think there are two key things we should focus on. one is as we go into 2023, what will the growth rate be? you know, i still expect decent double digit growth. i am forecasting 24% growth next year and deliveries. then two, what do the proper metrics look like? if you remember the first quarter of last year, that is where tesla achieved a 30% growth margin in the automotive segment and that was before the berlin and austin factories. as production ramps up in those factories, i do expect the gross profit margins will improve sequentially, so if tesla can

show improvement, that will give confidence that the stock can still work and be a growth stock. caroline: thank you as ever talking about the growth stock that is tesla. let's look at the competitive sided of all, because electric vehicles aren't just all tesla . there is so much competition. it is going to be on display front and center at ces in vegas. keith joines is now. we are used to basically car companies being the main proponents in the main areas of display technology companies. what is it going to be like at ces this year? will we have a little bit more sort of reasonable growth stories for these companies? keith: yes, ces is getting real this year, caroline. what we are seeing this year is displays of not fanciful things. we are seeing electric vehicles that are either on the road today or they will be. because everybody's trying to

catch tesla, right? so this year at ces it is all about pragmatism and profitability, not so much about potential and profits that may come someday or not at all. people want to know what can you show me that will deliver return now? caroline: oh boy. pragmatism and profitability is basically the phrase for every single company for the rest of 2023, whether it is a car company or not. talk to us about big introductions. what is going to be unveiled? seth: the big -- keith: the big ev unveiling's will be stellantis, they are going to show a concept of an electric ram pickup truck. they will have a pickup truck that will take on the ford f-150 lightning. also rivian and tesla. the cyber truck was that eventually comes out. so that is one of the big intros. but we will also see another electric pickup truck, the endurance from lordstown motors.

we will see some concepts from bmw and mercedes. but all of these things will be things that consumers can get their hands on soon. they're not just some research project in the lab. caroline: talking of research projects in a lab, one that has been more on the road have been self-driving, we know they have been trying very hard in this space. are we going to get anything in this focus point? keith: yeah, again, pragmatism will rule the day. what we have now is instead of the free range robo taxis that will take us everywhere, we are going to see a self-driving tractor from john deere. so that is the sort of thing that autonomy is focused on. it sees use cases that are needed today and would generate a return now. it does not mean that other companies are still out there, but the inflection point was argo, the self-driving unit of ford and vw going down, that has made this ces far more sober.

people are really looking at, you know, how can i make a profit today not tomorrow? caroline: sober. pragmatic. i'm not sure either of those things will sum up the enthusiasm we will get from ed ludlow on the ground in las vegas. keith, you set us up wonderfully. don't forget. thursday and friday full of energy bloomberg technology live from ces in las vegas. we will be chatting with so many leaders. dealt the ceo. siemens u.s. ceo in the qualcomm ceo. you don't want to miss it. meanwhile, coming up in the here and now, ai is all abuzz in silicon valley. what are the best strategies to invest? this is bloomberg. ♪

caroline: so, the u.s. government has seized or is in the process of seizing hundreds of millions of dollars worth of robinhood shares as part of the fraud case against sam bankman-fried. the ftx founder bought a steak last year. the shares have been claimed by various creditors of ftx who filed court cases to try to control them. this is all part of the government's fraud case against sam bankman-fried and other ftx officials. meanwhile, maybe crypto was the hot thing in 2022. now, the hot thing is ai.

microsoft is reportedly upgrading its search engine with it. the generative ai, of course, other ai tools that have got us all pondering the implications the use cases as we create text, images, videos, software, code, music, 3d models. my next guest is thinking on this more than most and has been thinking on this more than most. he is here to explain the fact that back in october before we got engrossed in it in various twitter trends, you said the biggest change to the internet is already upon us. and you said it was ai and the applications. talk us through your thinking. james: yeah, thank you for having us on. we are one of the largest seed funds in the world and our job is to be on the front edge. we are early in this process. we are heavy into it because we think it will affect every

industry, so there will be a number of unicorns built over the next four or five years in this area so we have been investing heavily in it. caroline: which parts are the most fruitful at the moment? i can see some being somewhat concerned about their future job descriptions. but which are the most practical use cases you have seen already? the millions that are flowing into companies and building in that space? james: right. right. on our website, we have published the largest market map out there. it is growing every day. about 32% of the $13 billion invested by those companies has gone into general ai models that are now powering. we would think that fiberoptics in the late 1990's that laid the

groundwork for the internet. going forward, we think there will be more invested in the upper layers of that stack. we think there will be three big winners. the first is going to be the companies that move very fast to build saas software to do things people expect, like copywriting or video editing. we are seeing that already with marketing and copywriting. the second group is going to be companies that use ai at the core of things like marketplaces and payment structures but aren't exactly delivering the ai to the customer. they are actually building it into create a more competitive business to the market. caroline: ok. james: and the third one is going to be the visionaries who do businesses that we haven't even thought of yet. and that is typically the way things rollout. caroline: how do you seek out the visionaries to that end, james? you have one program where you take a whole lot of technology companies you get them to pitch and within a swift turnaround, you decide if they are a

business model you want to be funding. is that the way to sort of find out where is the cutting edge where people haven't thought about the practical application? james: that is right. we have interviewed over 100 companies over the last two months and we are getting a good sense of where things are moving and where things are getting a little bit stuck. the thinking of the founders yet hasn't moved past the obvious ideas. so in the market we have 100 companies doing tax-based stuff like jasper. they are all doing something very similar. they have to take that next leap. so what we're finding out in these conversations is who has what it will take to get to that next level to be successful for next summer and the end of 2023. because what we are seeing now are the sort of copycats of what we saw as successful a year-and-a-half ago. caroline: the interesting thing is the pace is fast.

i'm interested in as we have learned some of the repercussions of all the money in the world, and perhaps not some safety in place, the governance that we would like to see in certain businesses, like ftx. how are you ensuring you're getting the rules of the road in place when you send that company money? james: yeah, so the program writes checks to companies with 2-10 people. we are giving them so much money that they can start behaving badly. the second thing is we sit down to talk to them about how to -- we are not giving him so much money that they can start behaving badly. the second thing is we sit down to talk to them about how to publish and follow on their values and the things they are going to adhere to. generative ai like the internet can be used for good or ill, whether it is racist or sexist comments or using it to generate images that are unseemly, you have to have rules of the road that you publish. you you commit to your community and you want to behave along those lines.

we help the founders put those in place. caroline: yeah, boy. i am interested james, is there any, does this need to come from a federal level? does this need to come from an international organization? think about how we put the rules two in place that we are building purposeful ai that is a net positive and never a net negative contribution? james: we think so. we think it out with their community. we want the generative ai community to do a lot better job than the social networking group did at laying out the principles and values they need to adhere to. that's always the first step , because as we explore these technologies, we who are building them understand the strength and weaknesses the best , but long-term, we need to have federal and international guidelines that we can all adhere to and hopefully we will get that in crypto pretty soon. we can see with the results of

not having it is. caroline: briefly, james, looking at these different companies, where are they being built? james: we are seeing a lot of them in europe, israel. but most of them are being built here in the u.s., on top of the great efforts that google and others have done over the years, to build up a lot of machine learning and artificial intelligence people. we have a lot of universities here putting out a lot of phd's and master's in this area. those people like to stay here in the u.s., so we have a lot of great teams going after this as we have for the last six years it is just the processing power and the cost has come down so much in the last 24 months that it exploded in the last three months. caroline: it is been great speaking with you. thank you for taking us through a call that is ahead of the curve. coming up, what silicon valley can expect if kevin mccarthy eventually becomes speaker of the house. this is bloomberg. ♪

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caroline: time now for going

viral. and you have seen it trending on countless hashtags. #house of representatives. #c-span. wednesday, kevin mccarthy failed for the sixth time to rally republicans. the house is at a standstill until the election of the speaker, which means business will not be conducted until it is settled. but current chaos aside, what can kevin mccarthy as a leader mean for technology in general? well, kevin mccarthy aims to stop companies from putting politics ahead of people. a nod to republican concerns about political censorship, which we have seen big changes in party, at least over at twitter.

president trump has been reinstated on the platform. and just yesterday, the company announced an easing of its political ads ban. and while kevin mccarthy's agenda doesn't specifically talk to those issues, that is something silicon valley will keep an eye on. now, that does it for this edition of "bloomberg technology." stay tuned for those votes yet to come from washington. but tomorrow, all eyes turn to las vegas. they turn to ed ludlow, who is going to join us again with the crowd strike ceo on his 2023 cybersecurity outlook. plus, don't forget to check out our own podcast. you can find it on the terminal, online, apple, spotify, and iheart. and plenty more in terms of these markets to come. from new york, this is bloomberg. ♪

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